Full text of Monthly Labor Review : January 1939, Vol. 48, No. 1
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IT E D S T A T E S B U R EA U O F LA B O R S T A T I S T I C S
Photo by P W A
th is issue
NUARY 1939
JrEB 7
Labor Mobility and Relief • M edical A id Under
W orkmen’s Compensation
. 48 * No. 1
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Common
Federal Reserve Bank of St. Louis
Labor
•
•
W a g e Rates for
W ages in Union Bakeries
UNITED STATES DEPARTMENT OF LABOR
Frances Perkins, Secretary
♦
BUREAU OF LABOR STATISTICS
Isador Lubin, Commissioner
Sidney W. Wilcox, Chief Stat
istician
Hugh S. Hanna, Chief, Edito
rial and Research
A. F. Hinrichs, Chief Economist
Henry J. Fitzgerald, Adminis
trative Officer
C H IE F S
OF
D I V IS IO N S
Jacob Perlman, Wages, Hours,
and Working Conditions
Swen Kjaer, Industrial Acci
dents
Lewis E. Talbert, Employment
Statistics
Florence Peterson, Industrial
Relations
J. M. Cutts, Wholesale Prices
Stella Stewart, Retail Prices
Charles F. Sharkey,
Law Information
Faith M. Williams, Cost of
Living
Boris Stern, Labor Informa
tion Bulletin
Herman B. Byer, Construction
and Public Employment
John J. Mahaney, Machine
Tabulation
Labor
jPublished by the Bureau of Labor Statistics, under authority of
Public Resolution No. 57, approved May 11, 1922 {4® Stat. 51/.1), as
amended by section 307, Public Act 212, 72d Congress, approved
June 30, 1932. For sale by the Superintendent of Documents, Wash
ington, D. C. Price, 30 cents a copy. Subscription price per year in
the United States, Canada, and Mexico, $3.50; other countries, $4.75.
This publication approved by the Director, Bureau of the Budget-
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UNITED
STATES
-F
BUREAU
HUGH
OF
LABOR
S TA T I ST I CS
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S. H A N N A , E D I T O R
FEB 7
CONTENTS
1939
J A N U A R Y 1939 Vol. 48 No. 1
Cover: Coulee Dam.
Special articles:
Pa®e
Basic problems of the national economy---------------------------------------Labor mobility and relief------------------------------------------------------------Medical aid under workmen’s compensation laws----------------------------
1
16
25
Industrial relations:
Workers’ attitudes on work sharing and lay-off policies in a manufac
turing firm----------------------------------------- ------------------------------------
Productivity of labor and industry:
- Labor productivity and work opportunities in cotton growing---------61
Effects of changes in grades of ore upon labor productivity--------------
63
Social security:
General Motors wage-loan plan__________________________________
Almshouses in Missouri------------------------------------------------------------------Old-age pensions and annuities in Canada-------------------------------------Voluntary contributory health insurance in Ontario-----------------------Compulsory unemployment insurance in Norway--------------------------British health-insurance system____________________________________
66
67
69
71
73
77
Paid vacations:
Amendment of Belgian law on vacations with pay--------------------------
93
Housing conditions:
Extension of slum clearance in District of Columbia----------------------Increase in F. H. A. insured loans________________________________
French housing law, 1938------------------------------------------------------------Housing for industrial workers in Germany-----------------------------------British housing act, 1938-------------------------------------------------------------
94
95
96
99
102
Standards and cost of living:
Spending habits of factory workers-------------------------------------------------Standards of living in an Indian-Mexican village----------------------------
104
105
Cooperation:
Some new cooperative procedures--------------------------------------------------Cooperative funeral aid in State of Washington------------------------------
Self-help among unemployed:
Federal aid to self-help cooperatives------------ -
Education and training:
W. P. A. training for household employment—
115652— 39------ 1
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i
I
108
109
II
Contents
Industrial accidents and safety:
Page
Meeting of National Safety Council, 1938_________________________
Accident experience of steam railroads in 1937____________________
Sickness and nonindustrial accidents among railroad employees_____
116
116
118
Labor laws and court decisions:
National Labor Relations Board may not abrogate union contracts. _
Recent court decisions of interest to labor:
Railroad Retirement Acts as applied to State-owned railroad__
Compensation denied because of disobedience of instructions___
Determination that electric railroad is not “interurban” upheld..
Injury at union meeting not compensable_____________________
Compensation for blood poisoning resulting from pimple_______
Fifth National Conference on Labor Legislation___________________
Oregon antipicketing law________________________________________
Nationalization of coal-mining rights in Great Britain, 1938________
Modification of French 40-hour law_____________________________
121
127
127
128
128
129
130
133
135
137
Industrial disputes:
Trend of strikes________________________________________________
Analysis of strikes in September 1938____________________________
Activities of United States Conciliation Service, November 1938____
140
141
149
Minimum wages and maximum hours:
Interpretations and regulations under Fair Labor Standards Act, 1938.
151
Wages and hours of labor:
Entrance wage rates of common laborers, July 1938________________
Wages and hours in union bakeries, June 1, 1938__________________
Works Progress Administration wage scales_______________________
Farm wage and labor situation, October 1, 1938___________________
Wages in cotton picking, 1938__________________________________
162
176
188
192
193
Labor turn-over:
Labor turn-over in manufacturing, October 1938__________________
Labor turn-over in automotive parts and equipment industry, 1936-37.
194
197
Employment offices:
Operations of United States Employment Service, November 1938___
201
Building operations:
Summary of building construction in principal cities, November 1938.
207
Retail prices:
Retail prices of food in November 1938___________________________
Retail prices of clothing and textiles, 1938_______________________
211
218
Wholesale prices:
Wholesale prices in November 1938______________________________
222
Trend of employment and p a y rolls:
Summary of reports for November 1938:
Total nonagricultural employment___________
Industrial and business employment__________________________
Public employment_________________________________________
Detailed reports forindustrial and business employment, October 1938.
227
227
231
233
Recent publications of labor interest________________________________
246
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-V *
This Issue in Brief
Basic Problems of the National Econ
omy.
The public hearings of the Tem
porary National Economic Committee
were opened in December by a 3-day
factual survey of the problems of
the national economy. Isador Lubin,
Commissioner of Labor Statistics and
member of the Committee for the
Department of Labor, described the
failure of the national economy to
produce enough goods and services
since 1929 to maintain an adequate
standard of living for the American
people. Willard Thorp, economist
for Dun and Bradstreet and director
of studies for the Committee in the
Department of Commerce, outlined
the structure of the American eco
nomic system and surveyed the prob
lems with which the individual busi
ness men who operate it are faced.
Leon Henderson, executive secretary
of the Committee, concluded with a
summary of the point of view with
which the Committee is approaching
these problems, and a list of some of
the important questions to which it
hopes to find an answer. He empha
sized the complexity of the economic
system, the wide variety of problems
faced by different industries, and the
rapidly changing conditions under
which the economy now operates.
Page 1.
Labor Mobility and Relief.
The relationship between relief and
the movement of workers is not so
clear as would be expected from a
knowledge of the legal residence
requirements under which relief is
given. New evidence on this relation
ship is available from a special study
of the returns from the Michigan
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Census of Population and Unemploy
ment which was taken in 1935. This
study finds that relief was responsible
for some of the movement of Michigan
workers, but that the amount of
movement directly related to relief
was not enough to modify the general
belief that relief in itself tends to
restrict the movement of workers.
In general, the more moves a worker
made, the less likely were those moves
to involve the receipt of relief.
Furthermore, unemployed workers did
not “shop around” in search of the
most liberal relief grants. The con
clusion suggested by the Michigan
data is that relief and the movement
of workers have a common cause in
unemployment. Page 16.
Medical Benefits and Workmen's Com
pensation.
Injured workers usually receive full
medical care in many of the States,
under the law or the current practice,
and in all but one of the Provinces of
Canada having workmen’s compensa
tion acts this is required by the stat
utes. In two-thirds of the States
amendments are necessary if full
medical aid is to be put upon a basis
of right instead of being partly de
pendent upon the good will of employ
ers and insurers. The promptness and
competence of medical aid depends
largely upon supervision. Indications
are that because of deficient public
supervision heavy losses and unneces
sary suffering are sustained.
Im
proved supervision by the compensa
tion commissions depends upon ade
quate support and staffing, and also
upon the adoption of personnel policies
under which the officers and employees
are selected on the basis of qualificaiii
IV
This Issue in Brief
tions for their difficult technical tasks
and are retained during efficiency.
Page 25.
court determination except when they
are governed by specific provisions of
the law. Page 151.
Wage Rates of Common Labor.
A survey of the entrance wage rates
paid to adult male common laborers,
made by the Bureau of Labor Statis
tics as of July 1, 1938, found that the
average hourly rate was 50.8 cents.
Of the total number of laborers cov
ered, 3.3 percent had rates under 25
cents, 8.0 percent under 30 cents, and
16.6 percent under 40 cents. Almost
a quarter, however, had hourly rates
of 57.5 cents or more. Page 162.
Sickness Among Railroad Employees.
A study of disability from sickness
and nonindustrial accidents among
60,000 railroad employees, made by
the United States Public Health Serv
ice, shows that the average daily per
centage of employees disabled for
more than 1 week varied according
to age group from 1.2 at ages less than
25 years to 10.7 at ages 65 years and
over. Although cases of 8 to 14 days
in duration predominated in all groups
up to the group 65 years and over, the
percentage of cases lasting longer than
50 days increased markedly with
increasing age. Page 118.
Wages of Union Bakers.
The average wage rates of union
bakers increased from $0,826 in 1937
to $0,845 in 1938. In the latter year
more than one-half the workers
covered in the survey by the Bureau
of Labor Statistics were on a 40-hour
week. Page 176.
Regulations Under Fair Labor Stand
ards Act.
A number of points have been clari
fied in connection with operations
under the Fair Labor Standards Act of
1938. Interpretations and regulations
issued, up to December 8, by the Wage
and Hour Division and the Children’s
Bureau of the U. S. Department of
Labor deal with the coverage of the
law, records required of employers,
definitions of exempt classes of labor,
and tolerances allowable in fixing
the terms of employment for special
groups of workers. The Adminis
trator’s interpretations are subject to
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Health Insurance in Ontario.
A voluntary contributory healthinsurance plan has been put in force in
Ontario, Canada, through the cooper
ation of employers, employees, and the
medical profession. The plan provides
for medical and surgical care and hos
pitalization for subscribers and their
families. The fees amount to $2 per
month for ihe subscriber, and for de
pendents range from $1.75 for the first
dependent to $1 for the fourth and
each additional dependent. Subscrib
ers are free to choose their physician
from among those participating in the
plan. The organization, called “ As
sociated Medical Services, Inc.”, was
granted a charter by the Ontario Gov
ernment in 1937 and offices have been
established in three of the principal
cities of the Province. Page 71.
MONTHLY LABOR REVIEW
FOR JANUARY 1939
BASIC PROBLEMS OF THE NATIONAL ECONOMY
B y E d w i n M . M a r t i n , B u reau o f L abor S ta tistics
THE Temporary National Economic Committee,1 which held its first
public session on December 1, 1938, is in vital respects a group without
precedent in American history. The Presidential message suggesting
it and the Congressional resolution creating i t 2 recognized in effect
the unusual nature and seriousness of the obstacles that have inter
fered in recent years with the adequate functioning of the national
economy. This condition, particularly as it affects labor, is apparent
in the prevalence of unemployment and inadequate employment of
both workers and productive resources, and in the gravely depressed
standards of living of large parts of the population, both rural and
urban. The seriousness of the problem found reflection in the com
position and duties of the Temporary National Economic Committee.
Its members represent both Houses of Congress and also various
executive agencies, and its duties include a thorough study of the
national economy for the purpose of ascertaining the main causes of
its inadequate functioning and of making recommendations with
respect to legislation.
The public hearings of the Committee were opened on December 1
by one of the members of the Committee, Isador Lubin, Commissioner
of Labor Statistics. During the first 3 days he shared with Willard
Thorp, director of studies for the Committee in the Department of
Commerce and economist for Dun and Bradstreet, and with Leon
Henderson, executive secretary of the Committee, responsibility for
presenting a factual introduction to the Committee’s work.3 They
described the failure of the national economy in recent years to
1 Frequently, although incorrectly, called the “Monopoly Investigating Committee.”
a The committee was suggested by the President in a message on April 29, 1938, and was authorized by
Public Resolution No. 113, 75th Cong., 3d sess. The resolution was approved June 16,1938. The Com
m ittee’s composition is as follows: “ (1) Three Members of the Senate, to be appointed by the President of
the Senate; (2) three Members of the House of Representatives, to be appointed by the Speaker of the
House of Representatives; and (3) one representative from each of the following departments and agencies,
to be designated by the respective heads thereof: Department of Justice, Department of the Treasury,
Department of Labor, Department of Commerce, the Securities and Exchange Commission, and the
Federal Trade Commission.”
1 In general, Mr. Lubin was responsible for the facts summarized in the first section of this article, Mr.
Thorp for those in section 2, and Mr. Henderson for the problems suggested in section 3.
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1
2
Monthly Labor Review—January 1939
produce enough goods for the American people, and surveyed the
perplexing problems which must be solved if the standard of liv
ing is to be permanently raised. This article summarizes their
testimony.
1. The Year 1929 a Turning Point
From 1850, the earliest year for which data are available, until 1929,
the output of the American economic system, as measured by the
national income, increased without serious interruption. In terms of
UNITED STATES NATIONAL INCOME
Ch a r t I
the physical volume of output of factories and mines the story is the
same. From 1870 to 1900 output increased fivefold. From 1899 to
1929 it tripled. During these years the population was increasing
rapidly, too, but not so fast as output. Two and one-half times as
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Basic Problems of National Economy
3
much was produced per person on the average in 1900 as in 1870,
twice as much in 1929 as in 1900. Occasional set-backs were always
brief and previous records were soon broken. (See charts l 4 and 2.)
UNITED STATES INDUSTRIAL PRODUCTION
1899*100
PER C A P IT A
Since 1929, however, the story has been different. In 1932, the
per capita volume of industrial production was at the level of 1899—
33 years lost. Today, in 1938, it is estimated that it has risen only
4 The data for chart 1 are from the U. S. Department of Commerce, for 1929-38; Kuznets in “National
Income and Capital Formation, 1919-1935,” National Bureau of Economic Research, for 1919-1928; and
W. I. King, in “ Wealth and Income of the People of the United States,” for 1850-1919; spliced into a single
reasonably comparable series by the Department of Commerce. They were reduced to a per capita basis
by use of population estimates for the Continental United States prepared by the Census Bureau.
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4
Monthly Labor Review—January 1939
to the 1905 level. For 9 years output has failed to equal earlier
achievements. Despite the continued growth of population, with
more people to house and clothe and feed, industry has in no year
turned out as much as it did in the late twenties. At no time has the
economy used its resources as fully as in 1929, except in agriculture.
The physical volume of output of farms has continued to grow through
out the depression, with the exception of relatively small declines in
the drought years. In 1931 and again in 1937 output was at record
high levels. As is indicated below, the incomes of farmers have not
followed the same trend as volume of output.
W A ST E D
R E SO U R C E S
The consequences of this reversal of trend since 1929 have been felt
by all classes of people. If nonagricultural employment could have
been maintained at the 1929 level, 43,000,000 man-years of productive
work would not have been lost. (See chart 3.) The real loss is even
greater, for since 1929 the human resources available have been in
creased by about 6 million new workers. A return only to the 1929
level of economic activity would leave 7 to 8 million workers unem
ployed. To give these people jobs, it is estimated that the Federal
Reserve index of industrial production would have to rise to 140.
It is now about 100. The man-power exists to expand production
enormously.
If it could have been somehow possible to keep at work throughout
these past 9 years as many people as were at work in nonagricultural
occupations in 1929 and to pay them the same salaries and wages, they
would have received $119,000,000,000 more than wage earners and
salaried employees actually got. Since 1929 these workers have lost
nearly two and one-half times as much income as they received in 1929.
Farmers have fared poorly too. They did not do well, even in
1929, but if their gross income could have been kept at the 1929 level,
their receipts over the past 9 years would have been $38,000,000,000
larger than they were, or about three times their actual gross income in
1929. The decline in farm prices, while output was reduced much less
than in industry, was largely responsible for this loss. On the same
basis of comparison, stockholders have lost three times as much in
dividends as they got in 1929.
As measured by the national income, the American people as a whole
have lost on this basis about $225,000,000,000 since 1929. This figure,
as well as those given above, is a dollar measure based on current
prices. The price declines since 1929 make the losses in terms of real
goods and services somewhat less than the dollar figures would sug
gest. It is difficult to measure the effect of the lower prices in recent
years, but the best information available would put the real loss in
national income at over $130,000,000,000. That still is a substantial
sum.
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Basic Problems of National Economy
b
IMPORTANCE OF DURABLE GOODS IN THE DEPRESSION
A detailed examination of the production records of the leading
American industries during the past 9 years reveals important
variations among them. It indicates that the depression was much
EMPLOYMENT LOST IN DEPRESSION
IN NON-AGRICULTURAL OCCUPATIONS
1930-38
U.S.BUREAU OF LABOR STATISTICS
CHART 3
more^severe in durable than in nondurable goods. The sharpest
declines after 1929 were in industries producing long-lived goods such
as steel, machinery, automobiles, lumber, cement, and houses—
goods whose importance in the economy has increased substantially in
the last 50 years.5 The recovery which reached its peak in 1937 was
‘ According to figures recently compiled by the National Bureau of Economic Research, the percentage
which durable goods were of the total output of commodities increased from 31 percent in 1879 to 44 percent
in 1929, only to decline to 27 percent in 1933.
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6
Monthly Labor Review—January 1939
most marked in durable goods. But output of these products with
few exceptions failed to regain the ground lost since 1929. (See
chart 4.) In large part this was due to the slow rate of improvement
of the construction industry.
Construction follows the general trend of output of the durablegoods industries, but in addition has some special characteristics of its
own. The peak of residential construction, for example, was reached
in 1925 when 937,000 dwelling units were built. By 1933 the number
of new residential units built annually had fallen to the almost in
credibly low figure of 54,000. Although the volume of building in
creased substantially after 1933, in 1937 it was still far below previous
levels. This slow improvement in construction has been felt severely
by manufacturing industries dependent on it, such as lumber and
cement.
On the other hand, output of nondurable products, such as cotton
textiles, shoes, and cigarettes, not only did not fall so low in 1932,
but in 1937 was larger than in any previous year, even 1929.
EMPLOYMENT IN THE DEPRESSION
Additional information on the varied impact of the depression years
on the different segments of the national economy is provided by the
record of employment. The number of employees in trade, finance,
and the service industries fell less after 1929 and made smaller gains
after 1932 than the number in the commodity-producing, transporta
tion, and utilities group. (See chart 5.) In manufacturing, employ
ment in the durable-goods and nondurable-goods industries has
tended to follow the same contrasting patterns that characterized
the production figures.
The data available for manufacturing, mining, and steam railroads
suggest that in these industries the declines in employment represent,
in part at least, more than a depression problem. From 1923 to 1929,
despite a substantial expansion of output, the number of wage earners
and the total number of man-hours worked declined. Fewer workers
produced more goods and services.
This conclusion is corroborated as a long-term trend by the studies
of output per man-hour in manufacturing, steam railroads, anthracite
and bituminous coal which have been made by the Bureau of Labor
Statistics. From 1909 to 1936 output per man-hour in anthracite
and bituminous-coal mining almost doubled; in manufacturing, it more
than doubled. From 1914 to 1936 output per man-hour on steam
railroads also nearly doubled. This increased productivity is in
part the basis of the rise in average real weekly earnings in these
industries. Real weekly earnings (cash earnings adjusted to cost
of living) were higher in these industries as a group in 1937 than in
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FEDERAL RESERVE INDEX OF MANUFACTURING PRODUCTION
ADJUSTED FOR SEASONAL VARIATION
1 9 2 3 - 25
AVERAGE FOR TOTAL * IOO POINTS
POINTS IN
TOTAL INDEX
POINTS IN
TOTAL INDEX
Basic Problems of National Economy
PREPARED BY THE STAFFS OF THE CENTRAI STATISTICAL BOARD AND THE NATIONAL RESOURCES COMMITTEE
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Ch a r t 4
Monthly Labor Review—January 1939
8
any previous year, although millions of workers were seeking jobs at
that time. It is probable that even at the peak of business activity
in 1937 there were as many as 7,500,000 workers without jobs.
NEEDS OF CONSUMERS CALL FOR GREATER PRODUCTION
It is clear that during the past 9 years American industry has failed
to use efficiently its vast resources of men and machines. If its capac
ity is to be used to the full, wider markets for its products must be
found. The necessary expansion can only take place by meeting
NON-AGRICULTURAL EMPLOYMENT
MILLIONS
IN THE UNITED STATES
MILLIONS
-\40
Ch a r t 5
more adequately the needs of the approximately 16 million American
families who received incomes of $1,250 or less in 1935—36. Even
small increases in the incomes of these families would add vastly to
the demand for the products of industry. Suppose, for example,
that the incomes of the 5,200,000 wage-earner families who had incomes
of $1,250 or less in 1935, and yet received no relief assistance, could
be raised to $1,500 each per year. This would require an increase of
a little over $2 per day for each family. These families would then
spend about $800,000,000 more for food, $416,000,000 more for
clothing, $613,000,000 more for housing, $213,000,000 more for fuel,
light, and refrigeration, $385,000,000 more for automobile and other
transportation, $73,000,000 more for personal care, $234,000,000
more for recreation, and $208,000,000 more for medical care.
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Basic Problems of National Economy
9
All along the income scale of wage earners, increases in income,
assuming no change in prices, would result in an extremely significant
expansion of consumer demand for the products of industry. The
wage-earner families with average incomes of $2,800 spend, for exam
ple, six times as much on automobiles as the family with only $1,500
and more than twice as much for medical care.
The need for more goods is obvious. Vast productive resources of
men and machines are idle. How can the vast home markets be
vitalized so that the needs of consumers can be turned into effective
demand required to stimulate employment and production? That is
the basic problem faced by the Temporary National Economic
Committee.
2. The American Business System
A sound approach to the solution of this problem calls, among other
things, for a thorough knowledge of the structure of the American
productive and distributive system, and of the varied and complex
problems with which the individual business men who operate the
system are constantly struggling. The summary data which have
been presented conceal an almost infinite variety in the experience of
individual concerns. A general expansion of production and con
sumption depends in large part on the solution of their problems—
problems, today, primarily of distribution, determining prices, and
finding buyers, rather than of production. And on this expansion
depends in fact the maintenance of what is known as the “American
Business System.”
BUSINESS POPULATION
There are over 2,000,000 firms, according to the records of Dun
and Bradstreet, in business in the United States. The number in
creased steadily from 1900 to 1929, and at a rate more rapid than the
increase in population. But as in the case of the national income and
industrial production, there was a decline after 1929. Although the
number is now increasing, it has not regained the level of that year.
(See chart 6.)
The total number of firms changes relatively slowly, but there is a
rapid turn-over in the individual units of which the total is composed.
It is estimated that, in 1937, 400,000 new businesses were started and
351,000 discontinued operations. Most of the new ventures started
each year are small organizations engaged in retail trade. Many of
them give up within the first year or two. According to a study of
the mortality of all types of companies started from 1843 to 1926,
in Poughkeepsie, N. Y., less than half lasted over 3 years, one-fifth
were still going after 10 years, and only 10 percent celebrated a
twentieth birthday.
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10
Monthly Labor Revietv—January 1939
There must be a substantial freedom of opportunity as well as an
enormous fund of optimism in a business system in which 400,000 new
enterprises are started each year. To many it may only be freedom
to lose their savings, but it is a significant figure, nevertheless.
In certain fields of activity, however, a number of factors act as
barriers to the starting of new enterprises. Necessary natural re
sources may be controlled by existing companies; basic patents may
be held on terms which prevent their use by potential competitors;
outlets or markets may be so dominated by existing firms that a new
UNITED STA TES BU SIN ESS POPULATION
THOUSANDS OF CONCERNS
THOUSANDS OF CONCERNS
competitor must force his way in against almost insuperable odds;
or the very nature of the business may require such a large capital
investment as to make a new venture extraordinarily difficult and
hazardous.
LARGE AND SMALL BUSINESSES
No measure of size is entirely satisfactory. Number of employees,
amount of assets, and value of products all have their uses and their
limitations. The most comprehensive data available for classifica
tion are the number of employees,6 reported by somewhat over
1,700,000 businesses covered by the old-age insurance section of the
Social Security Act in the last half of 1937. Of these employers, 50
percent had three employees or less. At the other end of the scale,
195 enterprises each had over 10,000 employees. These 195 enter« In fact the figure reported is the number of wage items. This is somewhat larger than the number of
employees on any given date, since it represents the total number of individuals on the pay roll at any time
during the 6-month period. The general picture provided by the percentage distribution should not be
affected seriously, however.
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Basic Problems of National Economy
11
prises had 12 percent of the total number of employees, about the same
proportion as were employed by the 1,300,000 employers who had less
than 10 employees each.
For some purposes the value of assets (chart 7) is a better measure
of size. This is particularly true if it is desired to include such organi
zations as public utilities and financial institutions, which usually
have few employees in proportion to their capital investment. The
best data available for classifying businesses according to the value
SIZE OF CORPORATIONS
BY A S S E T S IN 1935
PERCENT
NO CONSOLIDATED RETURNS
PERCENT
of their assets are the reports of corporations to the Bureau of Internal
Revenue for tax purposes. The usefulness of these figures is somewhat
reduced by the fact that corporations are responsible for only about
two-thirds of the total volume of business done in this country.
According to such estimates as are available, in 1937 they accounted
for nearly 100 percent of the business in the electric light and power,
manufactured gas, and communication industries, about 96 percent
in mining, 92 percent in manufacturing, 89 percent in transportation,
58 percent in trade, 36 percent in construction, 30 percent in service,
and only 7 percent in agriculture.
In 1935, over half the corporations reporting to the Bureau of
Internal Revenue had assets of less than $50,000, but their total assets
were only 1.4 percent of all corporate assets. On the other hand,
only 0.2 percent of all corporations, each with assets of over $50,000,000, had over half the assets of all corporations.
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Monthly Labor Review—January 1939
The great size and the recent growth of the few big business enter
prises have given them outstanding importance. Two character
istics of these industrial giants deserve special attention.
In the first place, with few exceptions, they have grown up in
groups or clusters. Few industries are dominated by a single giant
company; rather, several big firms are to be found competing with
each other. The old idea of an industry ruled by a single giant
“monopoly” is seldom valid today; in the place of monopolies are
found “duopolies” or “triopolies.”
Secondly, the larger organizations have reached their present size
by expanding in various directions. Their points of difference are
as striking as their similarities. Some have grown horizontally by
producing more and more of their original product. Others have
expanded vertically, securing control of the sources of their raw mate
rials or of the distribution system for their products, or of both. In
some instances the expansion may be characterized as diagonal; i. e.,
when an enterprise expands by using a single raw material to make
a wide variety of products, or adds to its output by producing numer
ous dissimilar articles which are all sold through the same distribution
channels. In other cases, where the demand for the original product
is a highly seasonal one, it has sometimes proved profitable to add
products solely to keep the plant and working force occupied in off
seasons. Occasionally the conglomeration of activities carried on by
a single company appears to be the result of pure chance.
This list of directions in which businesses have grown explains only
in part the factors which have been responsible for the present position
of large units in the national economy. Several additional circum
stances can only be listed. For some products, modern methods of
mass production have required vast capital investments; effective
distribution in a national market is increasingly dependent upon
national advertising campaigns which only large firms can finance;
some companies have expanded as the best way to invest their sur
plus earnings; and many mergers have been cradled in the offices of
investment bankers looking for securities to sell to the public.
SIZE, AS DISTINGUISHED FROM CONCENTRATION
For many purposes, it is essential to distinguish between concen
tration and size. As often as not they do not go together. Concen
tration is a measure of the control exercised in the market for a par
ticular product. The only grocery store in a village, though far
smaller, may exercise a substantial control over the market in which
it sells, and hence represent a degree of concentration in the control
of that particular market almost as great as that of a large oil com
pany faced by several equally large competitors, or a .huge industrial
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Basic Problems of National Economy
13
hybrid producing so many different products that it is of relatively
little importance in the market for any one of them.
Even a limited survey of a number of products with national markets
for which concentration data are available indicates wide variations
in the degree of concentration. In cement, in 1931, five large com
panies had 40 percent of the total output; in cigarettes, in 1934, three
companies had 80 percent of the output; in bituminous coal, in 1932,
four companies had 10 percent of the output; in copper, in 1935, four
companies had 78 percent of the output; in women’s clothing, in 1935,
four companies had 2 percent of the output; in plate glass, in 1935,
two companies had 95 percent of the output; in corn binders, in
1936, four companies had 100 percent of the output; in flour, in
1934-35, three companies had 29 percent of the output.7
Available figures on concentration should be qualified in other ways.
A high degree of concentration in the market for one product may be
of relatively small importance because of vigorous competition from
other products. For example, coal must compete more or less directly
with natural gas, petroleum products, and water power. Cotton
products compete with goods made of wool, silk, and rayon.
Concentration may be brought about effectively for certain pur
poses by various devices falling short of single ownership. Interlock
ing directorates are frequent channels for cooperative attempts at
market control. Retail stores have endeavored to meet the compe
tition of chains by forming voluntary cooperative organizations which
concentrate their buying power while leaving the merchandising
decentralized. Nearly 8,000 trade associations, 1,800 of them national
in scope, provide the most common example of the effort to meet
certain industry needs through cooperative action short of merger.
Lastly, there are at any time an unknown number of illegal combina
tions or agreements between competitors in violation of existing
statutes.
PROBLEMS OF THE BUSINESS MAN
Consideration must be given not only to the general structure of
the economy but also to the variety of problems with which individual
business men are constantly confronted. These problems may be
divided for purposes of discussion into two types. There are first the
broad problems, common to nearly all industries and hence nearly all
business men, such as technological changes, wars and threats of wars,
the fluctuations of the business cycle, problems of foreign competition
and foreign markets, and changes in governmental policies.
Probably of equal importance to the individual business man, but
far less widely recognized by the general public, is the infinite variety
7 The data for cement, cigarettes, flour, and corn binders are from the Federal Trade Commission. The
copper and coal data are from the Bureau of Mines. The data for plate glass are from the Tariff Commission,
and for women’s clothing, from the Bureau of the Census.
115652— 39------ 2
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Monthly Labor Review—January 1939
of problems involved in his relations with the rest of his industry.
These problems differ so widely from industry to industry that any
summary statement is apt to be misleading. A good example of their
variety and complexity is a list of trade-practice provisions regarding
indirect price concessions inserted in N. R. A. codes by business men
trying to solve their most pressing problems. These provisions were
concerned with the time of buyers’ payments, guaranties, allowances,
options and similar buyers’ privileges; restrictions on the supply of
additional goods; restrictions on services to buyers; restrictions on
financial assistance to buyers; restrictions on shipment concessions;
restrictions on commission concessions; restrictions on payments for
buyers’ services; restrictions on accepting competitors’ materials from
buyers; restrictions on the sale of substandard or obsolete goods;
restrictions on concessions beyond agreement; restrictions on forms
of payment concealing concessions; restrictions on selling agreements,
invoices, etc., concealing concessions; mandatory forms of agreement
for prevention of concealed concessions; restrictions on granting of
concessions to suppliers; and restrictions on the acceptance of con
cessions. These are but samples of the types of problems arising out
of a single business custom—indirect price concessions. The variety
of the problems faced in the different industries, and even in different
segments of the same industry, can hardly be over-emphasized.
3. Next Steps
One cannot fail to be impressed with the delicate powers of adjust
ment to changing problems and changing situations which the Ameri
can economic system must possess to survive at all. Increasing
specialization and increasing interdependence have multiplied the
complexity of the system. With such considerations in mind a nation
al income of $62,000,000,000 may even be regarded as a significant
achievement. But it is not enough, and ways must be found to
operate this delicate mechanism more effectively.
Any approach to this task must start with a recognition of recent
changes in the historic conditions and forces on which the vitality of
the American business system depends. Changed conditions must
be accepted as requiring changed methods.
Among the changed conditions of which account must be taken in
considering measures to increase production and consumption are
the sharply declining rate of population increase; the disappearance
of the frontier; the decline in the intensity of competition accompanied
by such controls over selling practices as the Robinson-Patman and
Miller-Tydings Acts; the increased importance of overhead costs;
the increased interference on an international scale with foreign
trade; the increased difficulty in finding investment outlets for savings
that accrue under the prevailing distribution of income; and a changing
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Basic Problems of National Economy
15
attitude toward the responsibilities of government for the economic
well-being of the population.
The adaptation of enterprise to these changed and changing con
ditions in such ways as to expand output and consumption will
require answers to many difficult questions. Some typical questions
are these:
What is the present status of competition? Is the lack of self
adjustment of the economy due, wholly or in part, to decline of
competition? If so, what changes are necessary in public and private
policy to make competition effective? If not, what are the alterna
tive organizing forces available? Is the choice necessarily between
full competition and full planning? To what extent is competition
through development of the product a satisfactory substitute for
price competition?
In what particulars are the antitrust laws inadequate? Does
overcompetition exist? What part has concentration played in the
decline of competition? What part has size played? Is concentra
tion an inevitable consequence of a developing industrial organiza
tion? What are proper standards for corporations doing interstate
business? Does concentration affect adversely or favorably the
distribution of income?
How flexible is the economy?
Has new investment lagged? What is the proper function of gov
ernment in a period of underinvestment? Under what set of economic
conditions can savings be absorbed?
Are our liberties endangered by the growth of private control? Is
there a relation between collectivism in private industry and collec
tivism in government? How can the dignity and importance of the
individual be enhanced by choices of economic policies? Should the
Government intervene to afford the individual business man a better
status in competition? What effects have patents had upon expan
sion of production?
In approaching these and related problems, the Temporary National
Economic Committee appreciates the complexity of the national
economy, its long historical background, and the interdependence of
its various parts. Innovations must recognize the deeply rooted,
organic nature of our economic institutions. Careful examination of
the facts and conscientious effort to understand the system as a whole
must precede any conclusions regarding remedies. But somehow
more must be produced; more must be available to increase the
American standard of living. The unprecedented nature and gravity
of many of the problems now confronting the Nation call above all for
open-mindedness toward possible solutions of our problems.
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LABOR MOBILITY AND RELIEF
By J o h n N. W e b b a n d A l b e r t W e s t e f e l d , Division of Social Research, Works
Progress Administration
THE movement of workers within a State or across State lines is
known to be affected to some extent by the availability of public
relief. It has generally been believed that relief tends to restrict the
movement of workers, because in the great majority of cases general
relief is available only to persons who have been self-supporting resi
dents (usually for a minimum of 1 year) of the community in which
they apply for assistance.1 This requirement, plus the fact that the
person must remain in one place while receiving relief, leaves little
doubt that, considered by itself, relief should act as a check upon
migration. It does not follow, however, that workers who have
received relief are, as a group, less likely to migrate than workers who
have not received it. Under some circumstances a worker may move
for the express purpose of obtaining relief, as when he returns to his
place of legal residence in order to be eligible for assistance. Under
different circumstances a worker on relief may move to another com
munity to seek work, in order to escape the necessity of remaining on
relief in his home community.
It can be seen, therefore, that a knowledge of the circumstances
under which relief is given does not provide a basis for judging the full
effects of relief upon labor mobility. Further information is necessary
concerning the actual movement of workers who have received relief,
as well as of those who have not received it. An opportunity of ob
taining such information has been provided by a special tabulation2
of the returns of the Michigan Census of Population and Unemploy
ment, which was taken in January 1935. Information obtained from
the special tabulation is presented in this report, together with a brief
analysis of what seem to be the more important disclosures.
The evidence derived from the Michigan study shows that the
effect of relief on the mobility of labor is not so simple and direct as
would be expected from a knowledge of the circumstances under which
public assistance is given. The group that received relief had a higher
proportion of workers moving than did the group that received no
relief; and among all workers moving, those in the relief group made
more moves per worker than did those in the nonrelief group.
1 An important exception to this general principle was provided by the Transient Eelief Program of the
F E E A which was in operation between the fall of 1933 and the fall of 1935; transient relief, however, was a
negligible factor in the returns of the Michigan census, on which the present article is based. It should
also be noted that occasionally relief officials do make exceptions to the requirementsj of legal settlement.
1 The tabulation of the m obility data from the Michigan census schedule was a cooperative undertaking
of the Michigan State Emergency Eelief Administration, the Michigan Works Progress Arlminist.rat.inn,
and the Division of Social Eesearch of the Works Progress Administration, Washington, D . C,
16
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Labor Mobility and Relief
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These facts immediately question the assumption that relief acts as
a brake on labor mobility, even though they cannot be taken as
proof that the assumption is incorrect. Further investigation shows,
however, that, while some moves were made either for the purpose of
obtaining relief or of insuring eligibility for relief, a majority of
moves made by recipients of public assistance had no immediate con
nection with relief. When relief was related to mobility, the most
direct connection was found among workers who made exactly two
moves, one away from a place of established residence followed by
one back to that place, or the reverse of this situation.
One conclusion of this report is that relief was responsible for some
of the mobility of Michigan workers, but that the amount of mobility
directly related to relief is not enough to modify the general belief
that relief in itself tends to restrict mobility.
Many of the moves back to a place of established residence where
relief was received would undoubtedly have occurred whether or not
relief was available. Similarly, the moves from urban to rural areas
were less for the purpose of obtaining relief—though relief was fre
quently necessary—than to escape the insecurity that confronts the
unemployed industrial worker in urban centers. The fact that there
was a considerable number of moves away from relief suggests that
employment, or even the prospect of employment, remains a sufficient
incentive to mobility to offset the stabilizing effects of relief.
The explanation of the relationship between relief and mobility
that is suggested by the Michigan data is that both relief and mobility
have a common cause in unemployment. The fact that relief was
received by less than one-quarter of all workers who moved, while
nearly half of these workers had one or more periods of unemploy
ment, lends support to this explanation.
The Michigan Census and the Mobility Study
The Michigan census, which provides the relief and mobility data
here presented, was taken during the early months of 1935 as a special
work project of the Michigan State Emergency Relief Administration.
The census consisted of a complete enumeration in some types of
community, and of an enumeration of 20 percent of the population in
others. Where less than the total population was included, great
care was taken to select a representative cross section of the com
munity. A separate schedule was filled out for each household. In
all, about 522,000 census schedules were taken, which represented
roughly 40 percent of Michigan’s total population. After careful
tests had been made to insure the reliability of the results, 120,247 of
these schedules were selected for a special study of the mobility of
Michigan workers.
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Monthly Labor Review—January 1939
The relief and mobility tabulations are based upon the workhistory section of the schedules used in the Michigan census. This
work history covered the 57-month period from April 1930 to January
1935; it showed each job held, the place of work, periods of unemploy
ment, and, if relief was received, the place in which it was obtained.
The data covered persons 15 years of age or older at the time the
census was taken.
A person was considered to have made a “move” whenever his
work history showed a change in community under one of the follow
ing circumstances: (1) In place of work, when the person was em
ployed both before and after moving, (2) in place of residence, when
the person was unemployed both before and after moving, or (3) in
place of work and place of residence, when the person was employed
at one end of the move and unemployed at the other, provided in
this case that the move was longer than between adjoining counties.
This last restriction was adopted because short-distance moves
between employment and unemployment were usually of the “com
muting” type which did not involve a definite transfer of workers
from one place to another. In the interests of uniformity, moves are
here reported only for those workers who had been in the labor market
(working or seeking work) for the entire 57 months covered by the
work history. Although all of these restrictions tend to reduce the
amount of mobility reported, they do eliminate questionable moves,
thereby insuring an examination of relief in relation to clear-cut trans
fers from one labor market to another.
Results of Study
The 120,247 households selected for the mobility study contained a
total of 149,379 workers who were in the labor market for the entire
period studied. In the statement below, these workers are divided
into two groups, according to whether or not they had made one or
more intrastate or interstate moves during the 57-month period
covered by the work history.
Number
Percent
149, 379
100. 0
Workers moving__________________________ 17, 847
Workers not moving_______________________ 131, 532
11. 9
88. 1
Total workers--------------------------------------------
In considering the fact that only about one-eighth of these workers
reported moves within a period of nearly 5 years, it must be remembered
that short-distance moves between employment and unemployment
have been excluded from the present analysis. If moves of all types
had been included, the proportion of movers would have been more
than half again as great as is shown above.
Still another factor must be considered here. The Michigan survey
was made at a time (January 1935) when the principal manufactur
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19
Labor Mobility and Relief
ing industries of the State had not yet recovered from a prolonged
depression. No doubt some of the workers who had been attached to
these industries during the prosperous 1920’s had left Michigan before
1935 and therefore could not be included.
NUMBER OF MOVES
The first significant information from the Michigan tabulations on
the relationship between relief and mobility is presented in table 1.
T a b l e 1.—Michigan Workers Moving and Not Moving, Classified According to Receipt
of Relief
Moving
N ot moving
Relief status
Number
Percent
Number
Percent
17,847
100.0
131,532
100.0
4, 226
13, 621
23.7
76.3
20,363
111,169
15.5
84.5
The distinctly higher proportion of workers who received relief
among those who moved than among those who did not—23.7 per
cent compared with 15.5 percent—leaves little doubt that relief
and mobility are associated in some degree. The information in
table 1 does not, however, give any indication of the amount of mobil
ity among the relief and nonrelief groups. The number of moves
made by workers in the two groups is compared in table 2.
T a b l e 2 . —Number of Moves by Michigan Workers, According to Relief Status of Worker
Total workers
Number of moves
Relief status of worker
Received relief
N um
ber
Total workers moving--------------------- ---------------- --- 17,847
25,885
12,736
3,701
766
644
4 or more moves-----. . . ------------------------------------145
No relief
Per
cent
N um
ber
Per
cent
N um
ber
100.0
4,226
100.0
13, 621
100.0
71 3
20.7
4.3
3.7
6,717
2, 585
1,190
254
197
159
61.1
28.2
6.0
4.7
19,168
10,151
2,511
512
447
141
74.5
18.4
3.8
3.3
Per
cent
11. e., number of moves per 100 persons moving.
Here again there is evidence of an association between relief and
mobility. The proportion of workers in the relief group who made
2, 3, and 4 or more moves was consistently higher than the similar
proportions for workers in the nonrelief group. This result is con
veniently restated in the “mobility rate,” i. e., the number of moves
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Monthly Labor Review- January 1939
per 100 movers. This rate was 159 for the relief group, as compared
with 141 for the nonrelief group.
MOVES AND RELIEF
It might seem from the information thus far presented that relief
not only does not act as a brake on mobility, but actually serves to
increase the mobility of relief recipients. Such a conclusion would
be premature for the simple reason that the moves made by a worker
may be entirely independent of the receipt of relief. For instance,
a worker’s mobility and his relief status may both be the result of
unemployment. Before any conclusions are drawn, therefore, it is
necessary to know whether or not there is any direct connection
between the individual moves made by workers in the relief group
and the time at which they received relief.
This is a much more difficult task than that of showing an asso
ciation between relief and mobility in the Michigan returns. Four
possibilities exist: A worker may get relief after moving or may even
move for the express purpose of obtaining relief at his destination;
he may move away from relief to a destination where he receives no
relief; he may, under somewhat unusual circumstances, move from
relief to relief; and finally he may move without receiving relief at
either origin or destination. The moves made by workers whose
work histories show receipt of relief have been arranged in table 3
according to these four classifications.
T a b l e 3.
Relationship of Total Moves Made to Receipt or Nonreceipt of Relief at
Time of Each Move 1
Total moves by persons making—
Percentage distribution of moves
by persons making—
Receipt of relief
1
2
3
Total move
moves moves
T o t a l _____ _ . . .
4 or
4 or
1
2
3
more Total
move moves moves more
moves
moves
6,717 2,585
2,380
762
990 100.0 100.0
Relief at destination... _ .
1,515
622
Relief at origin. . ............
933
185
Relief at origin and destination... 238
93
Nonrelief_____ _______
4,031 1,685
625
532
105
1,118
145
109
15
493
123
107
25
735
22.0
13.9
3.5
60.0
24.1
7.2
3.6
65.1
100.0
100.0
100.0
26.3
22.4
4.4
46.9
19.0
14.3
2.0
64.7
12.4
10.8
2.5
74.3
m uafv K m °nly the m0V6S °f persons who received relief at some time during the period April 1930 to
Perhaps the most important disclosure in table 3 is that for threefifths of the moves made there was no direct connection between
relief and the mote. It should be noted, however, that an exception
to this general statement is to be found when the number of moves
per worker is examined. For workers making exactly two moves,
over one-half of the moves involved relief. The significance of this
exception will be examined later.
Next in importance is the fact that moves involving relief at both
the origin and the destination were of little moment regardless of
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Labor Mobility and Relief
21
the number of moves made. In part, at least, the explanation is to
be found in the eligibility requirement for relief. Only under excep
tional circumstances could a worker be eligible for relief at both the
place in which he resided before the move and the place to which he
moved. Whether they wanted to or not, it seems clear from table 3
that workers did not “shop around” from place to place in search of
the most liberal relief grants.
With the exception of workers making two moves only, the results
in table 3 may be stated generally as follows: The more moves a
worker made, the less likely he was to have moves involving relief;
and more workers moved to relief than away from relief.
The connection between relief and mobility appeared to be most
pronounced among workers making two moves; this fact suggested
that the way in which relief affects mobility might be discovered by
examining the actual circumstances under which two moves were
made when one or both of the moves involved relief. The following
illustration is from a case covered in the Michigan survey:
Place
Activity
Dates
Grand Rapids (beginning of E m p loyed : B rick layer, April 1930 to January
record).
building construction.
1933.
Grand Rapids__ __________ Unemployed: Direct relief-_ February 1933 to
April 1933.
Battle Creek (first move)__ E m p loyed : B rick layer, May 1933 to July
road construction.
1933.
Grand R apids (second Unemployed: Direct relief-_ August 1933 to Jan
m ove).
uary 1935.
In this case a worker moved away from relief to employment, but
after three months of work the job was completed, the worker re
turned to his former residence, and he again obtained relief. The
first move was recorded as “Relief at origin,” and the second as “Relief
at destination.” This example helps to explain why, among persons
making two moves, the proportions with relief at origin and relief at
destination were both so frequent and so nearly equal.
A somewhat similar situation (also*from ¡the survey), but one in
volving an interstate move, should help to show why relief was re
ported somewhat more frequently at destination by workers making
two moves only:
Place
Activity
Dates
Palmer (beginning of record) Unemployed: Dependent on April 1930 to April
friends.
1932.
Minnesota 1 (first move)___ Employed: Tractor driver, May 1932 to August
road construction.
1932.
Palmer (second move)_____ Unemployed: Direct relief-_ September 1932 to
March 1933.
Palmer___________________ Work relief (FERA): Road April 1933 to January
construction.
1935.
1 The census did not report the name of civil divisions outside the State of Michigan.
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Monthly Labor Review—January 1939
These two examples are enough to bring out one important aspect
of the mobility of workers in the relief group who made two moves.
Most of them moved away from a place of established residence in
order to find work, and when the employment in the new locality
failed, they returned to their place of residence where they were
eligible for relief. One other frequent situation that occurred among
workers making two moves, with relief connected with one or both
moves, arose as a result of the operation of the Civilian Conservation
Corps. In a considerable number of the cases included in the Michi
gan survey, C. C. C. enrollees from relief households moved from
their place of residence to the location of the C. C. C. camp to which
they were assigned, and later returned to their place of residence.
Although workers who moved twice show more completely the way
in which relief was related to mobility, the connection is fairly
clear among workers who made only one move and received relief at
their destination. The following type of move was of frequent oc
currence:
Place
Port Huron (beginning of
record).
Osceola County
(single
move).
Activity
Dates
Employed: Photographer,
studio.
Farmer, general farm (relief
received).
April 1930 to August
1932.
September 1932 to
January 1935.
This case illustrates the “back to the land movement” that at
tracted much attention during the worst period of the depression.
At the same time, it may be used to illustrate practically all cases of
a single move where relief was received at the destination. Unem
ployed workers, particularly those in urban centers, frequently re
turned to a place in which they had, or could readily reestablish,
eligibility for relief. In reality, most of these cases involved two
moves rather than one, but the move away from the place of legal
settlement occurred prior to the date (April 1930) when the work
history began.
The connection of relief and mobility was much less direct among
workers making more than two moves. Contrast the pronounced
mobility of the case below with the restricted mobility of the previous
cases:
Place
Activity
Dates
Hillsdale (beginning of rec- Employed: Pressman, print- April 1930 to Septemord).
ing office.
ber 1931.
Tekonsha (first move)_____ Same______________________ October 1931 to No
vember 1931.
Coldwater (second m ove)__ Same______________________December 1931 to
July 1932.
Ohio 1 (third m ove)________ Same______________________ August 1932 to May
1933.
1 The census did not report the name^of civil divisions outside the State of Michigan.
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Labor Mobility and Relief
Place
23
Activity
Dates
Mancelona (fourth move). . . Unemployed: Direct relief._ June 1933 to March
1934.
Fremont (fifth m ove)---------Employed: Pressman, print- April 1934 to January
ing office.
1935.
The connection between relief and mobility is uncertain in this
case. The worker had not resided long enough in Mancelona to
establish eligibility under the Michigan requirement of 1 year of
self-supporting residence in the county, nor did his history show a
prior residence in that county since 1930. Either he had some undis
closed claim that was acceptable, or he persuaded the local authorities
to make an exception to the general residence rule. In any event,
there is no such readily discernible connection between relief and
return to a former place of residence as was found in the earlier
examples. This case also illustrates the earlier statement that the
more mobile a worker was the less likely he was to have relief moves.
URBAN-RURAL MOVES
There is one additional classification of the Michigan data that
helps to bring out the relationship between relief and mobility. In
table 4 the moves of workers who received relief are arranged according
to urban and rural origins and destinations. Only moves within
the State of Michigan are included, because the urban and rural
character of interstate moves was not reported.
T a b l e 4 . — Urban-Rural and Relief Character of Intrastate Moves by Persons Receiving
Relief During Period Studied
Number of moves
Percent of moves
Receipt of relief
Urban- Rural- RuralUrban- Urban- Rural- RuralTotal Urbanurban
rural urban rural Total urban
rural urban rural
T otal____________________ 4,938
1,028
1,368
1,084
100.0
100.0
100.0
100.0
Relief at destination______ 1,112
Relief at origin___________
695
Relief at origin and destination. ______ _______ __
205
Nonrelief__________ ______ 2,926
161
113
473
73
115
319
363
190
22.5
14.1
15.7
11.0
34.6
5.3
10.6
29.4
24.9
13.0
20
734
72
750
48
602
65
840
4.2
59.2
1.9
71.4
5.3
54.8
4.4
55.6
4.5
57.6
1,458 100.0
There are several important facts contained in table 4. About
one-third of the moves from city to country involved relief at the
rural destination. Included here are the “back to the land” moves
that so frequently resulted in the receipt of relief because the moves
were to abandoned farms in the cut-over and other poor agricultural
areas. Some urban to rural moves also were made by industrial
workers who, when unemployed, returned to the rural community
in which they formerly lived and where they could obtain relief if
necessary.
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The urban-rural movement was more pronounced during the earlier
than during the later part of the depression. The return movement to
the cities is shown by the relatively large proportion of moves away
from relief (at origin) in rural areas to the cities. Table 4 also shows
that the rural worker, like the urban worker, frequently moved to
a place where he was eligible for relief during periods of unemploy
ment. Moves from rural to rural areas had the second highest pro
portion both of moves with relief at destination and of moves with
relief at origin. Finally, it should be noted that among moves from
city to city the proportion of moves involving relief was distinctly
lower than among moves between city and country or between country
districts. This suggests that when workers moved to relief, rural
areas were much more frequently the objective than were cities.
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MEDICAL AID UNDER WORKMEN’S COMPENSATION
LAWS 1
By M arshall D awson, Bureau of Labor Statistics
COMPETENT and adequate medical aid for injured workers is of
great significance to all parties concerned. It is important to workers
because on it depends the speed and degree of their recovery and
restoration to earning capacity, and the rating of the extent of disa
bility for which they receive compensation. It is important to em
ployers and insurance carriers because they pay the bills. It is
important to physicians because of the broad scope and rapid expan
sion of industrial medicine as a phase of medical practice.2 Finally,
medical aid is of importance to administrators, because their duty
is to see that injured workers receive adequate and proper medical
attention.
The discussion which follows is based primarily on the results of
interviews with compensation commissioners, medical officers, insur
ance representatives, labor leaders, and attorneys in all the States and
Canadian Provinces having compensation laws, as well as in Puerto
Rico.
Medical-AicL Provisions
In the United States the greatest advance in the workmen’s com
pensation system since the first acts were-passed has been in the pro
vision for medical aid. Even as late as 1919 there were three juris
dictions which furnished no medical service, except that in fatal cases
involving no dependents the medical expenses of the last sickness
were paid by the employer. In 1938, 15 jurisdictions provided vir
tually unlimited medical aid under the law or the administrative
practice, as compared with 6 in 1919. To these 15 jurisdictions there
should be added, for most practical purposes, 10 others in which the
administering authority may extend, without limit, the provision for
medical aid beyond the initial limitation of time or amount specified
in the acts.3
In proposals to legislatures for remedial amendments the prevailing
argument has been that adequate medical aid is “economical” ;
humanitarian motives, though undoubtedly present, have seldom been
stressed. Employers and insurance carriers increasingly recognize
1 One of a number of articles based upon a study by the Bureau of Labor Statistics. Earlier articles were *
given in the January, February, and March 1936, and June and September 1938 issues of the M onthly
Labor Review.
J For the programs of medical organizations in relation to the compensation system, see American Col
lege of Surgeons, Medical Service in Industry and Workmen’s Compensation, Chicago, and AmericanMedical Association, Bureau of Medical Economics, Medical Relations under Workmen’s Com
pensation, Chicago.
3 For details, see Bureau of Labor Statistics Serial N o. R. 815: Workmen’s Compensation in the United
States as of July 1, 1938. For a presentation of early situations and developments prior to 1920, see U . S.
Bureau of Labor Statistics Bulletin No. 275, pp. 90-112.
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that “what is best for the patient is, in the same proportion, an econ
omy for the insurance carrier and for industry.” 4
In Canada, under all the Provincial workmen’s compensation acts,
with the exception of Nova Scotia, unlimited medical aid is furnished.
In Nova Scotia medical aid is given for 30 days only, unless authorized
for a longer period by the workmen’s compensation board. In
British Columbia and Alberta the workers themselves contribute
toward the cost of medical aid.5
The Ontario act has served to some extent as a model in the drafting
of other Canadian acts. The Ontario provision for medical aid reads:
Every workman entitled to compensation * * * or who would have been
so entitled had he been disabled for seven days, shall be entitled to such medical,
surgical and dental aid, and hospital and skilled nursing services as may be neces
sary as a result of the injury, and shall be entitled to such artificial member or
members and apparatus and dental appliances and apparatus as may be neces
sary as a result of the injury and to have the same kept in repair for a period of
one year (sec. 49).
Problem of Medical Cost
While on the one hand workmen have pressed for increased medical
benefits in some jurisdictions, on the other hand much has been said
and written, especially during the years 1930-1935, about so-called
alarming increases in the cost of medical aid. The change in the ratio
of medical aid to compensation cost especially under depression condi
tions has become a matter .of concern to both insurance carriers and
State administrations.
Some attempts to make upon the basis of State reports a comparison
of the ratio of medical cost to compensation payments are vitiated by
the diversity in the reporting and statistical practices in the States
compared, and also by the variable nature of the two items compared.
Few States have complete and dependable data on medical cost.6
FACTORS IN THE SITUATION
In an analysis of the situation the following appear to be significant
factors:
(1)
Both the scale of compensation and the provision for medical
aid have been greatly increased in many jurisdictions during the last
20 years.
4American Journal of Surgery, March 1936 (p. 436): “Economic Aspects of Industrial Fractures,” by
Dr. A. D . Lazenby.
8For details of provisions and practices in the Provinces, see Canada, Department of Labor, Compari
son of Provincial Laws, Ottawa, July 1938.
6The general situation as to estimates of medical cost, is indicated by a typical explanation in the report
of the Industrial Commission of Minnesota for 1933-1934 (p. 186): “The total cost of medical and hospital
treatment rendered to injured employees in the State of Minnesota in the cases closed during the biennial
period is not given in this report as indicated by tables numbered 5, 6, and 7 because of the fact those figures
are not obtainable.” Medical cost under what is known as “ contract medical” arrangements is seldom
reported. The medical cost of self-insurers is rarely known. The Minnesota Industrial Commission adds
this caution w ith regard to its tabulations of medical cost: “In studying the medical and hospital expenses
hereinafter given in the statistical tables and in the analyses of these tables it must be borne in mind that
the figures there shown are for those cases only in which the employers or their insurers have reported
these items.”
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27
(2) The increase in the scale of compensation payments has
stimulated an increase in medical aid or made it necessary, to save
the large compensation costs which would result from inadequate
medical treatment of injuries.
(3) An increase in medical cost, wisely applied, diminishes compen
sation payments, and therefore may increase the ratio of medical to
compensation cost.
(4) Compensation payments in some States are abnormally lessened,
during periods of intermittent employment, by a method of computing
the wage base which makes it only a fraction of full-time earnings.
Where this is done a high ratio of medical cost may indicate either
low compensation payments or ample medical aid.
(5) No matter how low the wage or the wage-base sinks, the cost of
treating an injured worker is relatively constant, and tends to increase
during depression periods under the stress of physicians’ pecuniary
need and the reluctance of the worker to admit that he is cured in the
absence of available employment.
(6) Fee-padding and other unethical practices on the part of a
minority of the medical profession, especially in the largest cities, has
increased medical-aid cost.
(7) Where the worker selects a physician of his own choice, adminis
trators find that in some cases the physician has difficulty in con
trolling the situation, because he risks losing the practice of the
worker’s family and friends if he reports, contrary to the wishes of his
patient, that the injured employee is able to return to work. The
question of the comparative skill of the physicians engaged under the
two methods is also a point at issue.
(8) In most of the States medical supervision by the compensation
commissions has been deficient, since few of them have a medical
staff, and the turn-over of the administering personnel has been too
rapid to allow the commissioners to master the medico-economic
phase of the work. Statistics are seldom used by the compensation
administrations for the guidance of their medical supervision.7
INEXPERT SERVICE AS A FACTOR IN COST
In addition to the factors mentioned, it must be noted that in some
areas part of the recent increasing cost complained of is attributed,
by both compensation administrators and insurance carriers, to the
increasing participation of the general practitioner or “family”
physician in the treatment of industrial injuries. In the early stage
of workmen’s compensation many physicians did not seek or accept
opportunities to treat injured workers if they could avoid doing so,
in part because of their reluctance to make reports and appear at
7Forms for use in compiling information relating to medical aspects of workmen’s compensation are found
in a Manual of Industrial Injury Statistics prepared for the U. S. Bureau of Labor Statistics by Max D .
Kossoris.
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Monthly Labor Review—January 1939
hearings, and attention to such cases was in the main left to surgeons
and specialists. But since 1929 physicians of all types have sought a
wider participation in workmen’s compensation practice. Compen
sation officers attribute this to the relative certainty of payment for
the medical care of injured workers, in contrast with the difficulty of
collecting medical bills from private individuals during the period
1929-35.
Unspecialized and inexpert medical care of injured workers has
often proved disproportionately expensive because of errors in diag
nosis and treatment. Compensation officers mention instances of
serious harm done by bandages that were too tight, of permanent
impairment of function because plaster casts were left on too long,
and even of skull fractures that were overlooked until the patient died
and an autopsy brought to light the unsuspectêd cause of his un
willingness to return to work. It is not to be expected that a general
practitioner will be skilled in interpreting the diagnostic signs of the
varied types of occupational diseases. Under workmen’s compensa
tion, mistakes in medical diagnosis and care are reflected not only in
the bills for prolonged treatment, but also in augmented benefit
payments.
Medical A id as Affecting Rehabilitation
As reported by the Vocational Rehabilitation Service, U. S. Office
of Education,8 difficulties of the medical aspect of workmen’s com
pensation which affect the rehabilitation of injured workers are:
1. Amputations are frequently made more with a view to minimizing the com
pensation benefits to be paid than to usefulness of the remaining part. For
example, in the case of an injury to a foot requiring amputation, the surgeon
makes a Chopart amputation leaving an almost totally useless stump but reduc
ing the benefits to be paid. In any number of cases the disabled person must
either use an appliance that at best is very unsatisfactory or have a reamputation
in order to get a useful stump.
2. In many instances in making amputations even when the amount of com
pensation is not involved, the surgeon either leaves too long or too short a stump
for effective use of an appliance.
3. Amputations are frequently left improperly shaped and closed, or the bone
is too long for the stump and, therefore, improperly padded.
4. In the case of mutilations, muscles that otherwise might be restored to
much usefulness are rendered practically useless by adhesions and contractures
that could be avoided by better procedures and more careful treatment.
While great strides have been made in the past few years in these respects there
is still room for improvement.9
Such difficulties point to a lack of coordinated supervision on the
part of workmen’s compensation and rehabilitation administrations
s Summary furnished by Terry C. Foster, October 15,1938.
• For an account of the effective use of surgery in the rehabilitation of amputation cases under workmen’s
compensation, see the discussion by Henry H. Kessler, M . D ., in U. S. Division of Labor Standards Bulletin
No. 17: Proceedings of the 1937 meeting of the International Association of Industrial Accident Boards and
Commissions (p. 160).
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Medical A id Under Workmen’s Compensation
29
and the medical profession. The Vocational Rehabilitation Service,
U. S. Office of Education, has planned conferences with representa
tives of medical organizations and workmen’s compensation adminis
trators, as a first step toward the formulation of coordinating proce
dures for Nation-wide use.
Relations of Medical Profession and Compensation Authorities
The attitude of physicians and medical organizations toward the
compensation law, the administrators, and the insurance carriers,
has been an important factor in the operation of the compensation
system. Because of the narrow limitation of payment for medical
aid to injured workers provided by the early compensation acts,
physicians complained that part of the burden of workmen’s com
pensation insurance had been put upon their shoulders. Disputes
over the payment of medical bills were frequent. Amendments pro
viding more adequately for medical expense have facilitated the im
provement of relations between the compensation authority and the
medical profession. At present, either informal or organized cooper
ation is found in most jurisdictions, and as a rule compensation
administrators stated that on the whole their relations with physicians
and their organizations were satisfactory. Difficulties experienced
were attributed to a minority—sometimes a small minority—of the
members of the medical profession.
Continued improvement in medical relations is expected as a result
of the advancing standard of medical education, the increased em
phasis in education and practice upon organized attention to indus
trial hygiene, and a better understanding by physicians of the require
ments of the compensation system, particularly as to records and
reports. It is customary to invite the participation of the medical
organizations when medical-fee schedules are formulated or revised.
In many jurisdictions, in case of disputes over doctors’ bills and
hospital charges, the judgment of officers or committees of medical
organizations is requested by compensation officers.
Scope of Medical Administration
The full scope of medical participation in workmen’s compensation
includes treating, adjudication, and preventive service. A medical
officer who had long experience under workmen’s compensation in
sisted that “compensation administration is 80 percent medical.”
Certainly the satisfactory operation of workmen’s compensation de
pends largely upon competent medical treatment of workers, together
with the prompt furnishing by physicians of correct medical reports
upon injuries and the giving of unbiased testimony at hearings. The
ability of compensation officers, therefore, to enlist the full coopera115652— 39------ 3
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M o n th l y L a b o r R e v ie w — J a n u a r y 1 9 3 9
tion of the medical profession in the compensation program is a
highly important factor in administration. In some of the States
and Provinces compensation commissioners, as a means of advancing
a program of intelligent medical cooperation, make addresses at
medical conferences and sometimes at medical schools which give
courses in industrial medicine. In some jurisdictions, by arrange
ment with the medical associations, committees are created to aid
the compensation commission in settling controversies over medical
fees. In some instances, through such committees the cooperation
of medical organizations is secured for upholding professional stand
ards in the treatment of injured workers.
The supervisory responsibility of the workmen’s compensation
authority extends not alone to the medical care of injured workers
but also to medical expenditures, the scrutiny and weighing of medi
cal testimony in the course of settling claims for compensation, and
the physical rating of injuries or disabilities, including the determina
tion of their relation to the employment of the injured worker and
their probable effect upon his earning capacity
T H E R A T IN G O F D IS A B IL IT IE S
The awarding of compensation payments depends in part upon the
reports and testimony of physicians with regard to the occupational
cause and the extent of disability resulting from the injury. The
rating of disabilities, or the determination of the degree to which
a certain injury entails loss of function and the relating of such
impairment to some corresponding degree of industrial disability, is
a task of the greatest difficulty, sometimes requiring a revision of
the findings of the medical practitioner by the compensation officer,
who should have a knowledge of the injured man’s working situation
which the physician may lack. In at least one instance the court has
held that the compensation officer’s expertness in medico-economic
judgments may justify his disregarding medical testimony and forming
an opinion upon the facts.10 Discussions of this problem and of
rating schemes are found in the reports of the annual meetings of the
International Association of Industrial Accident Boards and Com
missions.11
PR O B L E M O F P R E -E X IS T IN G IL L -H E A L T H
In compensation cases where a pre-existing condition of ill-health is
aggravated by an industrial injury, a problem arises not only in
w McCarthy v. Industrial Commission, 194 Wisconsin 198. Cited by A. J. Altmeyer in University of
Wisconsin Studies in the Social Sciences and History, No. 17: The Industrial Commission of Wisconsin,
Madison, 1932, p. 96.
i* For an analysis of the rating problem, see U. S. Bureau of Labor Statistics Bulletin No. 577 (p. 162 et
seq.); and U. S. Division of Labor Standards Bulletin No. 10 (pp. 78 and 99). For an example of the cor
rection, by a compensation commissioner, of a medical rating of an injury in its bearing upon vocational
disability, see Bureau of Labor Statistics Bulletin No. 577 (p. 172). See also Disability Evaluation, by
Earl D . McBride, N ew York, J. B Lippincott Co., 1936.
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Medical A id Under Workmen's Compensation
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regard to compensation and medical benefits but also in determining
the burden to be borne by insurance carriers. As to the latter there
are two contrasting practices in the jurisdictions. In some areas, the
legal rule is that industry takes the workman as it finds him and is
fully responsible for what subsequently happens to him in the course
of his employment. In other areas, the legal rule is that industry is
responsible only for the ordinary consequences of the kind of injury
sustained by the workman; medical aid is limited to the period over
which the injury would have caused disability had there been no
diseased condition, and compensation payments are limited to the
disability which the injury would have caused except for the disease.
In many instances it would seem to be difficult if not impossible to
divide with an accurate line the mingled consequences of an injury
and the aggravation of an existing disease. It would appear to be
more desirable to allocate a workman who has heart disease, for
instance, to tasks not requiring overexertion than to pay compensation
for his untimely death. But the difficulty with some existing ap
proaches to the problem is that they would deny such a man the
right to work, because of the expectation that he might be a com
pensation liability.
A D M IN IS T R A T IV E SA F E G U A R D S A G A IN S T B IA S E D R A T IN G S
Among the causes of difficulties in rating injuries, compensation
officers mention, as leading factors: Lack of knowledge on the part
of physicians in regard to the occupational relations and consequences
of industrial injuries, which affects not only their estimates of extent
of disability but also in some cases surgical operative practices and
results; extreme differences of viewpoint upon extent of disability,
arising in part from the absence of accepted standards of measure
ment; differences of attitude with regard to subjective factors
affecting disability, such as, for example, “hang-overs” of fear and
pain or loss of self-confidence; and, most important of all in the
judgment of administrators, the absence of scientific impartiality
on the part of many physicians in their reports and testimony
regarding the cause and extent of disability. Compensation officers
find, in regard to medical testimony upon extent of disability, that
too often the attitude of physicians resembles that of retained advo
cates rather than impartial experts. Where there is much antagonism
between injured workers and the insurance carriers or the compen
sation hearing officers, it frequently is caused by the feeling that
medical specialists called upon to make “impartial” ratings of dis
abilities have not been unbiased in their reports and testimony.
Administrative steps to guard against partisan testimony include the
exercise of care in avoiding the use, as impartial specialists, of
physicians known to be employed, on a fee basis or otherwise, by
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Monthly Labor Review— January 1939
compensation insurance carriers; and, in rare instances, the disciplin
ing of physicians habitually giving biased testimony. Under the
Rules of Procedure of the Workmen’s Compensation Board of
Pennsylvania (sec. 38) “the board will, upon petition, or of its own
motion, issue a rule to show cause why” a physician who gives
partisan testimony, and who is “not actuated by a desire to further
the just administration of the act,” should not be disciplined. The
steps in such action are as follows:
If, after a full hearing, the board in conjunction with two members of the
Medical Society of the State of Pennsylvania selected by the Medical Board of
Education, shall deem that the facts require such action, the rule will be made
absolute, and a certified copy of the order of the board sent to all referees and
compensation authorities, who will be instructed that, in any matter when such
physician shall testify, in considering what weight to give his testimony, due
consideration shall be given to the action of the board in the matter in which the
rule was issued.
CHECKING UPON PROGRESS AND RESULTS OF MEDICAL CARE
The task of watching over the honesty of the injured worker and his
physician, as indicated by the size of the compensation claim and the
medical bills, has too often overshadowed the necessity for unceasing
vigilance to make certain that the worker is receiving the best possible
care. Medical supervision has usually been unbalanced by the stress
of medico-legal tasks. With the formulation and adoption of uniform
methods of rating disabilities, and also with the use of a claims pro
cedure which minimizes public controversy over the disabilities of
injured workers,12 more attention could be given to developing
improved methods of guarding against unnecessary loss and suffering
to workers resulting from delayed recovery and undue permanent
disability. Compensation officers have cited instances of treatment
unsuccessfully prolonged for more than a year, under one physician,
when a cure has been promptly effected after the patient was trans
ferred to a properly qualified practitioner. A method sometimes used
for disclosing such situations, before irreparable harm has been done,
is to check upon the progress of cases by comparing the time during
which treatment has continued with statistical averages of the period
of treatment for similar injuries.
The American College of Surgeons, after making surveys of medical
departments and services in industry, reported that “these surveys
revealed that compliance with the compensation law does not in
itself signify an efficient medical service and that financial awards
cannot correct a disability that is chargeable to inadequate medical
service.” 13 Clearly, maintaining or elevating the standard of medical
is See U . S. Bureau of Labor Statistics Serial No. R. 734: Claims Administration in Workmen’s
Compensation.
i* American College of Surgeons. Medical Service in Industry and Workmen’s Compensation Laws,
Chicago, 1934, p. iii.
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Medical A id Under Workmen’s Compensation
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care of workers by approved methods of checking upon medical per
formance and by unceasing administrative vigilance is a service that
goes beyond enforcing the letter of the compensation law. An
example of such service would be a thorough check upon the complete
ness of restoration, at the time disability ratings are made. The
unsatisfactory surgical results that have been noted by rehabilitation
officers indicate the absence of such a check. Reasons given by some
compensation officers for not checking upon surgical results are the
lack of a medical director, the inadequacy of the medical staff, or the
cost of the examinations.
A thorough medical re-examination of many old cases, made in
Alberta Province in 1936, brought to light a number of instances of
unsuspected conditions that were a cause of troublesome complica
tions and dissatisfaction with previous awards of compensation.14
In the Alberta examinations a group of specialists cooperated and
considered, in conference, their findings upon “problem” cases. One
result of the intensive attention given to complete examinations has
been the inauguration of a program for the after-care of certain injured
workers, which has resulted in some instances in a marked reduction
of permanent disability. Such reduction of disability, by reducing
compensation payments, has more than offset the unusual expense
of the examinations and additional care. The Alberta experience
indicates that a complete examination of the “end results” of treat
ment at the time an award is made would eliminate one of the causes
of the reopening, in later years, of cases supposed to have been finally
closed.
In States where claims are settled under the procedure known as
the “agreement system,” investigations disclosed that the actual
condition of the injured worker is sometimes incorrectly shown by
the reports and agreements. The Fifth National Conference on Labor
Legislation, 1938, recommended that “wherever agreement settlements
are permitted, no case should be considered closed unless the injured
person has been examined by the board or commission or its medical
staff.”
PROBLEM OF CHOICE OF PHYSICIAN
Whether the injured worker shall freely choose his own physician
or accept a physician selected by some one else is one of the most
controversial points in compensation administration. Under the
earlier acts the choice of a physician by an injured worker, except at
his own cost, was seldom permitted, but there has been a trend toward
free choice both in statutory amendments and in the administrative
practice.15
14Analysis of the results of the examinations has been in preparation by the Alberta Workmen’s Com
pensation Board, but has not yet been published.
■s This subject has been discussed at length at the annual meetings of the International Association of
Industrial Accident Boards and Commissions. See especially U. S. Bureau of Labor Statistics Bulletin
N o. 432 (pp. 117-128); No. 577 (p. 41); and U. S. Division of Labor Standards Bulletin No. 17 (p. 108).
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Monthly Labor Review—January 1939
The various arrangements for the selection of the injured employee’s
physician are: (1) Choice of physician by employer or insurance
carrier, (2) selection by the employee from a list or panel made up
by the employer or carrier, (3) selection by the worker from a panel
made up by the workmen’s compensation authority and medical
organizations, and (4) “free choice” by the worker. In actual prac
tice the first two and the fourth methods are sometimes found in the
same jurisdiction. It should be kept in mind that under any arrange
ment the right of choice is not absolute, but is subject to control by
the compensation authority in case of abuse. It is quite common,
in jurisdictions where the employers or insurance carriers have the
legal right to choose the physician, for them to allow the worker to
do so if he prefers his own physician. Where the worker is entitled
to choose, he often accepts the employer’s medical service, especially
in large plants with medical-aid arrangements which the worker has
found satisfactory. Often the industrial worker does not have a
“family physician” ; he is sometimes not in a condition to choose;
in thinly populated areas the scarcity of physicians often makes a
range of choice by either party impractical, and it is usually so under
“contract” medical arrangements. “Self-insurers” are often allowed
to follow their own practice with regard to the selection of physician.
In Wisconsin the employer or carrier makes up a list or panel,
from which the employee may select his physician. In 1937 Harry A.
Nelson, director of workmen’s compensation, said that there was very
little dissatisfaction with this system of selection, and that employers
and insurance carriers were liberal in making up or revising panels to
meet the worker’s preference.
In 10 States 16 the law or the administrative practice gives the in
jured worker first choice
In New York, under a 1935 amendment, the injured employee has
a right to select his physician but must choose from a list or panel
made up by the compensation administration in cooperation with
county medical societies. Physicians who are licensed to practice
have been admitted without question to the panel, but the medical
societies determine what type of injuries they may treat.
By rule of the New York Department of Labor, employers are not
allowed to recommend a physician to an injured employee, except
when requested by the worker. The new system has caused grave
concern to some insurance carriers, who contend that under it their
power of safeguarding the medical care of the injured worker is
impaired. On the other hand, the insurance carriers actually retain,
18Arizona, Massachusetts, Nevada (by administrative practice whenever the employee expresses a
choice), North Dakota, New York (from a panel), Ohio, Rhode Island, Utah (by administrative regula
tion, i. e., Medical and Surgical Fee Schedule, Rule 2), Washington (except in contract hospital cases),
and Wyoming. The usual qualifications upon the right of choice have been mentioned elsewhere. In
other States, the injured worker is usually allowed to choose a physician at his own expense if he so desires.
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Medical A id Under Workmen's Compensation
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to some extent, the power to influence the treatment that is given,
because if dissatisfied they can resist payment of a physician’s fees,
subject to arbitration by a committee or in some cases to a contest
before the compensation authority.
From the point of view of persons and organizations emphasizing
the importance of assuring the best possible medical attention to the
needs of the injured worker, an important phase of the problem of
medical administration is the marked reluctance of compensation
officers to interfere, except upon specific complaint, in cases of un
satisfactory treatment. In some jurisdictions compensation officers
at times undertake to discourage physicians from treating injuries
which are outside the range of their knowledge and skill by disallowing
part of their fees. It is apparent, however, that such punishment of
a physician does not repair the damage done to a worker who has
lost an eye because the family practitioner in charge of the case
neglected to call in a specialist.
Experience indicates that if the extension of “free choice” of physi
cian by the injured worker is not to be followed by reaction to directed
choice, thorough supervision of medical aid is necessary. In the best
examples, such supervision is furnished in part by well-trained claims
officers and by medical officers whose checking upon the performance
of physicians is aided by adequate records and statistical information,
as for instance, calculations of average periods of duration of tempo
rary disability in certain types of injuries.
The information that is available indicates that under the existing
situation compensation costs under “free choice” are greater than
under directed choice. In the 1934 edition of its publication, Medical
Service in Industry and Workmen’s Compensation Laws, the American
College of Surgeons made reference (p. 24) to a continuing study of
the “costs and disabilities resulting from injuries, based upon the fact
that the physician * * * is or is not selected by the insurance
carrier.” By September 1938, comparative statistics had been pre
pared covering over two million noncompensable cases, or cases show
ing no loss of time from work, and also 182,000 other cases covering
cuts, lacerations, punctures, abrasions, bruises, and contusions, ex
cluding all cases involving any permanent disability or temporary
disability exceeding 40 days. According to Allen D. Lazenby, M. D.,
chief surgeon of the Maryland Casualty Co., “the results have indi
cated that the choice of doctor by the employer or his insurance carrier,
if that choice is intelligently, sincerely, and effectively exercised, results
in definite saving not merely in medical expense, but in compensation
loss, as evidenced by decreased periods of disability and improved end
results.”
An interesting example of oscillation from one type of medical
control to another is found in Quebec, where each system, in turn,
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Monthly Labor Review—January 1939
has proved unsatisfactory to one group or another. From 1931-33,
the claimant had the right to choose his physician. From 1933 until
late in 1936 the choice was given to the employer under the supervision
of the compensation board. Since that time, under the 1936 amend
ment, the claimant has had the right to choose his physician. Accord
ing to the compensation officers, under free choice the medical bills
increased.17
No arrangement for medical aid yet devised in the States has been
altogether free from abuses. The preponderance of evidence indi
cates that under directed choice of physician recovery is quicker and
permanent disability is less. On the other hand, compensation of
ficers find that in some instances favoritism has put unqualified prac
titioners on an employer’s panel. It is significant that in one State
the legislature, beset by the difficulties of medical administration,
passed a “Medical Abuses Act.” This title is symptomatic of the
medical-aid situation in a number of jurisidictions. In recent years
measures for controlling abuses have received more attention than
the objectives of maximum restoration and adequate after-care which
were earnestly advocated by some compensation commissioners as
early as 1920. At times the medical care of injured workers has been
a battleground upon which workers and insurance carriers, doctors,
lawyers, and commercial interests have fought for control.18
MAIN POINTS TO BE GUARDED
Although there are differences of opinion as to the best arrangements
and also the scope of activity of compensation officers in supervising
the medical phase of administration, in the judgment of medical officers
the main points to be guarded may be summarized as follows:
(1) The worker should be treated by a physician, surgeon, or specialist whose
competence to treat the type of injury sustained has been determined by recog
nized medical organizations.“
(2) The injured employee should be protected from a biased rating of his
disability or prejudiced medical testimony as to its cause by reference to the
medical staff of the compensation commission or, in the absence of such staff,
to impartial medical experts or to special medical boards.
17
An article in the Journal of Commerce and Commercial (New York) for July 19, 1938, announcing
changes in the Quebec workmen’s compensation administration, says that “costs to employers have risen
sharply, notably so since the injured workmen have been allowed to choose their own physicians. This
has meant an additional cost of approximately $500,000. W hile the expectation is that the choice will still
be left with the workmen, observers say that more prudence will have to be exercised by the new commission
in checking abuses.” This statement was orally confirmed by members of the compensation board.
The medical phase of the compensation system has been more fully investigated in N ew York than in
any other State. See U . S. Bureau of Labor Statistics Bulletin No. 577; Proceedings of the International
Association of Industrial Accident Boards and Commissions (pp. 27-42); and Dodd, Administration of
Workmen’s Compensation, N ew York, Commonwealth Fund, 1936 (pp. 445-469). The N ew York investi
gations were prompted not alone by a concern for costs but also for the proper care of injured workers.
° There are national boards of certification for the various medical specialties. These boards, approved
by the American Medical Association, certify to the competence of individual practitioners in the specialty.
18
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37
(3) Physicians should be required to submit upon standard forms to the com
pensation administration, prompt, accurate, and comprehensive reports upon all
industrial injury cases treated by them. These reports should serve as the basis
for determining the adequacy of medical care. Serious injuries, particularly those
involving permanent disability, should be reviewed by competent physicians,
preferably on the staff of the compensation administration.
(4) Fees charged for treating industrial injuries should be supervised by the
compensation administration.
It has been noted that compensation administrators do not always
accept without qualification the medical rating of injuries and dis
abilities made by physicians. They say that physicians employed
by insurance carriers often underrate or minimize the seriousness of
disabilities, while physicians employed by injured workers usually
overrate disabilities.
Medical Examination of Workers as a Preventive Procedure
The main step in the medical program for the prevention of injuries
has been the physical examination of employees. Except under the
provisions of recent legislation giving workmen’s compensation cover
age for the dust diseases (silicosis, anthraco-silicosis, asbestosis, or
those included in the more general term pneumoconiosis), pre-employ
ment physical examination of workers and also periodic re-examina
tion, where it was found, was required by the employer but not by
the law.19 A necessary phase of the extension of occupational disease
coverage, and especially coverage of the dust diseases, is a program
of cooperation between the State and industry in guarding the health
and to some extent supervising the placement of workers. But the
fact that pre-employment and periodic examinations of workers have
sometimes been used oppressively has aroused opposition to such
practices. There are, however, examples of legal and administrative
protective measures which have led to a more favorable attitude of
workers toward medical examinations. In Wisconsin a recent law
provides for payment up to the sum of $3,500, predicated on wage
loss, if a workman is discharged on account of nondisabling silicosis.
In the absence of protection against the unjust use of medical examina
tions the voluntary cooperation of workers in this feature of a health
program is not to be expected.
In the judgment of medical officers, the medical examination of
workers should be thorough, should be given by a physician and not
by a first-aid man or nurse, and should be used not only as a guide to
placement but as a step toward the correction of remediable defects.
For example, impaired eyesight has caused many accidents, and comAn unusual provision found in the N ew Mexico Compensation Act, sec. 23, makes it the “duty of the
workman, at the time of his employment or thereafter at the request of the employer, to submit himself to
examination by a physician or surgeon duly authorized to practice medicine in the State, who shall be paid
by the employer, for the purpose of determining his physical condition.”
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petent attention to the eyes of the worker, if contemplated in the
medical program, is mutually advantageous to employee andemployer.
The chief concern of compensation officers, in regard to the exam
ination of workers by employers, has been to protect workers against
indiscriminate discharge. Although compensation officers seldom have
adequate legal authority for interfering in this matter, they have at
times by persuasion, threats, or disability awards, halted the discharge
of workers or secured their reinstatement. Where the offending em
ployer was a self-insurer, the compensation commission has sometimes
warned him that the privilege of self-insurance would be revoked
unless the employer used the medical examinations more construc
tively. An outstanding example of protection of the workers by the
compensation authority occurred in Massachusetts in 1933. Because
the situation is one which may recur during the initial stage of an
occupational disease coverage program in other States, an account of
the procedure is quoted from the Report to the General Court of the
Special Industrial Disease Commission (1934), p. 171:
The Taunton cat>e.— In April 1933 a situation arose in Taunton whereby 42
foundrymen were summarily discharged, following physical examinations by a
local physician at the behest of an insurance company, on the theory that they
were suffering from silicosis or tuberculosis. This situation, it was stated, was
caused primarily by the refusal of another company to continue to carry the
risk and the cancelation of their policy on 10 days’ notice. The matter was a
serious one and gave the commission grave concern. At its door at almost every
hearing was a delegation from these 42 discharged men, begging for an opportunity
to work. They pleaded that they were able to work, that they were not sick,
and that all they wanted was an opportunity to go back to their employment and
support their families. The commission rightfully devoted no little time to the
problem of getting these men back to work, and also endeavored to secure for
them some payment for their loss of time. After 7 months, it was able to secure
for them the payment of compensation, on the theory of total incapacity, for the
entire time they were out, a total payment of over $17,000, and an agreement
that all who were adjudged by the Commissioner of Public Health fit to do so
might return to work. Forty-one of the men did return to work, and, at the
writing of this report, are still employed.
An outstanding example of the use of medical examinations, as a
step in the disclosure of injuries and prevention of unsafe working
conditions, is reported in the September 1938 issue of the New York
Industrial Bulletin (p. 424). Because many States are as yet not
aware of the need of labor department facilities for such action, part
of the narrative is reproduced to show how the health and lives of
workers were safeguarded and disastrous losses avoided or minimized.
The initiative, in this instance, was taken by the division of industrial
hygiene. In New York, this division is set up separately from the
workmen’s compensation division, while in Ohio the division of safety
and hygiene is within the agency that administers workmen’s com
pensation; but in any event the operation of such a unit, where it
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Medical A id Under Workmen’s Compensation
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exists, is aided by a coordination with the compensation authority,
which, through the accident reports received by it, may be the first
to know of situations requiring preventive measures.20
Word came to the division that a death occurred in an establishment in Phila
delphia where rotogravure printing was done with the use of inks containing large
amounts of benzol. It appeared that with the introduction of faster printing
presses, a need was created for inks which would dry more rapidly, and benzol
inks were introduced to meet this need.
Immediately on hearing of this death, an investigation was begun to determine
whether or not these inks were also being used in New York State. This brought
to light the fact that they were in use in three large rotogravure plants in New
York City. The inks were being purchased from the same ink manufacturer which
was supplying the Philadelphia plant with its fast-drying ink.
Almost coincidental with this initial survey, a telephone call came to the division
from a physician in the city who had a case which he suspected of being benzol
poisoning in a man working in one of the rotogravure plants under investigation.
This man subsequently died of benzol poisoning in the Brooklyn Jewish Hospital.
Within a few days following the initial investigation of the three plants, arrange
ments were completed for the physical examination of all workers there employed,
the making of air tests, ventilation studies, and chemical analyses of all materials
handled. Because of the emergency, the division of women in industry arranged
for the doctor connected with that division to work with the medical staff of the
division of industrial hygiene.
Within the following 3 weeks, 361 workers were given complete physical
examinations including blood counts and, where indicated, urine analyses. Ap
proximately 2,000 blood determinations were made and 96 urines examined.
A total of 47 air analyses were made, and 25 inks and solvents were analyzed
quantitatively to determine their precise chemical composition.
Seven of the workers were found to be in need of immediate hospitalization.
Six were admitted to the Rockefeller Institute and one to Presbyterian Hospital.
One hundred thirty-eight of the workers were found to be in need of medical care
and were referred either to their own physicians or the blood clinic at the Rocke
feller Institute. All of these workers were carefully followed by the division of
industrial hygiene and 123 re-examined. * * *
Conferences with the companies * * * resulted in the immediate discon
tinuance of the use of benzol-containing inks, and the substitution of nontoxic inks.
Special Administrative Devices
Special devices relating to medical administration appear from time
to time in one place or another, such as boards and committees which
have to do with fee supervision, the medical examination of workers,
the rating of disabilities, and also appeals from such ratings when made
by compensation officers. Upon close examination, some of these
devices prove to be of local significance only. The remedy that is
tried may prove to be useful as an expedient but may be discarded
soon or superseded by another device.21 In 1938, in seven States
w A description of the coordination of the New York Division of Industrial Hygiene with the Division of
Workmen’s Compensation is found in the Industrial Bulletin for October 1938, p. 470.
*i In the State of Washington the administration of the medical aid law was transferred in 1921 from the
State medical aid board to the workmen’s compensation authority. T his ended the experiment in that
State with dual responsibility in medical administration.
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(Massachusetts, Michigan, New York, North Carolina, Ohio, Penn
sylvania, and West Virginia) there was a statutory provision for special
medical boards or referees, in some instances as a phase of silicosis
coverage. In any effort to supplement the administration by setting
up special medical and rating boards, care should be exercised not to
curtail or undermine the authority of the compensation commission,
which, through long experience, may have an understanding of the
problems and situation of the injured worker superior to that of some
medical practitioners.
In 1936 an experiment of unusual interest was made in Alberta. A
traveling group of specialists was established, for making thorough
re-examination of all cases in which the claimants had expressed dis
satisfaction with their disability ratings or awards. This committee,
accompanied by the chairman of the compensation board and some
times by labor leaders, visited cities and also isolated mining com
munities. Its findings provided a basis for the reconsideration of
“problem” cases. There were no formal sessions for “hearings”
attended by attorneys. The method was that of diagnosis and
conference.
Importance of Adequate Provision for Medical Supervision
EXISTING PROVISION FOR MEDICAL STAFFS
As of January 1 , 1938, in 21 States22 the workmen’s compensation
authority had a medical staff, but with full-time officers in only 8
instances.23 With the exception of Saskatchewan, which has parttime medical officers, all the Canadian funds have full-time medical
officers. In New Brunswick in 1936 a physician was appointed as a
member of the workmen’s compensation board. In Alberta the
chairman of the board is a physician.
A compensation commission can hardly cover its task of medical
supervision unless it has authority under the law, as well as funds, for
making upon its own initiative any needed arrangements for advisory
medical committees, disability ratings by expert consultants, and
independent medical examinations. Most of the commissions, in
case of medical dispute or apparent prejudice, have authority to select
an independent physician to examine the worker, but in several
instances commissions reported lack of funds to pay for examinations
which they did not consider properly chargeable to the employer
or insurance carrier. One remedy for such deficiencies is an improved
method of financing the administration.
22Arizona, California, Florida, Georgia, Illinois, Iowa, Massachusetts, Nevada, Nebraska, New Jersey,
New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Rhode Island, South Carolina!
Virginia, Washington, and West Virginia.
23 Discussions of the necessity for and duties of a medical staff are found in U. S. Bureau of Labor Statistics
Bulletin No. 577 (pp. 159 et seq.) and in TJ. S. D ivision of Labor Standards Bulletin No. 4 (pp. 134 et seq.).
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Medical A id Under Workmen's Compensation
Notwithstanding the notable progress made in many States and
Provinces in the extent and quality of medical care provided for
injured workers, much remains to be gained by further improvement.
A necessary step in this direction, in most jurisdictions, is more ample
support for medical supervision and research. In the States the
salary scale for medical officers is seldom sufficient to enable the
commissions to secure and retain the highest type of medical personnel
on other than a part-time basis. In the existing situation such
attention as medical officers can give to the broader problem of the
type of medical aid received by workers is usually incidental to the
examination of bills and rating of injuries. Attention to the organiza
tion of medical aid to injured workers is left to insurance carriers,
employers, and others who have a stake in this field of service. In
the circumstances it is inevitable that while some of the medical care is
excellent and well organized, in other instances the care is haphazard
and inferior.
COSTS UNDER ALTERNATIVE TYPES OF SUPERVISION
In the United States measurements are not available to show the
effect upon compensation cost of alternative types of supervision.
Comparisons of European industrial accident statistics emphasize
the importance of well-organized and qualified medical service in
preventing loss to employers and undue suffering and disability on
the part of injured workers. In the Monthly Labor Review for
February 1938 (p. 435) Dr. Alfred Manes invited attention to a
“very instructive comparison” in compensation cost “between two
countries which seem completely comparable—the Netherlands and
Switzerland.”
The legal requirements of the insurance system covering industrial accidents
are very similar in the two countries and the few deviations which do exist are
negligible. A comparison of the insurance costs of both countries for the years
1932-1934, however, shows the following differences:24
N e t C o st o f I n s u r a n c e fo r I n d u s tr ia l A c c id e n ts in N e th e r la n d s a n d S w itz e r la n d , 1 9 3 2 - 1 9 3 4
N et costs (in per
centage of wages)
Industry
Nether
lands
Generation and distribution of electricity-------------------------------------------------»---------
3.9
5.1
9.3
9.7
19.7
7.0
Switzer
land
6.1
10.3
23.3
18.7
35.6
23.6
24 it was explained by Dr. Manes that the differences in wage levels and medical fees in the jurisdiction
compared were not sufficiently significant to vitiate these figures.
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M o n th l y L a b o r R e v ie w — J a n u a r y 1 9 3 9
The Netherlands seem to have a most efficient medical service and this may
be the reason that the time of treatment in case of an accident is comparativelyshort. Ninety-five percent of all workmen’s accidents there require less than
6 weeks of medical attention before the worker is able to return to work. Such
a favorable result is probably due to the fact that in the Netherlands all accidents,
even the least serious, are inspected by official experts, and, if necessary, the
injured persons are attended by specialists.
IMPACT OF INEXPERIENCE UPON MEDICAL SUPERVISION
In the course of the Bureau of Labor Statistics’ survey of compen
sation administration it was apparent that insufficient attention has
been given in the States to the study of loss prevention through
medical supervision. As to the use of statistics in such supervision,
a compensation officer of long experience summed up the situation
by saying that “this is a matter upon which the commissions require
education.” In part, the cause of this lack of development is inex
perience. In many States the prevailing practice with regard to
appointment, qualifications, and tenure of compensation adminis
trators and personnel has had an adverse effect upon medical super
vision. Almost from the start of compensation administration in the
States, commissioners have deplored the rapid turn-over of personnel.
At the 1937 convention of the International Association of Industrial
Accident Boards and commissions, Donald D. Garcelon, chairman
of the Maine Industrial Accident Commission, said in his presidential
address:
The rapid changes of personnel in compensation administration in this country
is nothing short of appalling. * * * Continuity of service, especially in a
highly technical branch such as this, is absolutely essential if we are to have
really efficient administration of existing laws, or the mature experience that
would warrant us in endeavoring to better them. (U. S. Division of Labor
Standards Bulletin No. 17, p. 4.)
Where there is periodic turn-over of personnel, appointees facing
the medico-legal problems of workmen’s compensation often find them
selves in need of specialized knowledge which at the outset they lack.
Compensation officers have said that not less than 2 years of special
study and experience are needed for understanding the medical phase
of administration. In some jurisdictions compensation officers are
replaced, sometimes before they have completed their apprenticeship,
by others who may have to learn the subject anew. In consequence,
defects of supervision resulting from inexperience are inevitable in
many States.
In several of the Provinces of Canada where compensation admin
istration has actually been upon a merit basis, though not under civil
service, and in Wisconsin where under a thorough application of civil
service the administration closely approaches a “career service,” ex
perience indicates that with consistent adequate supervision abuses
incident to medical aid can be minimized and reasonable satisfaction
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given to workers. Observation of the situation in the United States
and Canada indicates that this factor, after the legal provision for
unlimited aid has been enacted, is the controlling one. With con
sistent adequate supervision under an ample grant of authority, the
problems incident to medical aid are understood as they arise and
solved before they become chronic.
In the present situation there is little indication that significant
improvement is to be expected, in many States, until compensation
administration has been recognized as a special profession offering a
career to those qualified for this exacting branch of public service.
In the circumstances, indiscriminate criticism of the performance of
compensation officers overlooks the cause of the difficulty; better
service cannot be had until its basis has been provided.
Attitude of Insurance Carriers
Since the supervision, if any, of the cure of injured workers (as dis
tinguished from supervision of medical expense) is often left almost
completely to the insurance carrier or employer, the attitude, organ
ization, and equipment of the carriers, for supervision, is of the
greatest importance to the worker and the State. This factor has
seldom received adequate consideration in administrative studies.
The impression has found currency that most insurance companies
rate more highly a physician’s skill on the witness stand than in the
curative art.25 Such an attitude on the part of the insurance carrier,
where it prevails, is an inheritance from the employers’ liability in
surance practice which was the predecessor of compensation insur
ance. A few carriers, for a number of years, have recognized that "it
is not only good ethics but also good business to supply the best of
medical attention for the period it is needed.” 26
From time to time the medico-legal service of insurance carriers is
complained of at legislative hearings on proposals for amending the
compensation laws. Commonly, the service of all carriers is consid
ered as a unit, when such complaints are made. It should be remem
bered that in many jurisdictions there are 40 or 50 carriers writing
compensation insurance policies, some of them with a very small
volume of business. Such insurance is sometimes accepted reluctantly,
or only where it accompanies other types of casualty insurance written
for the client. In the circumstances, adequate servicing is sometimes
difficult and the standing of all carriers is affected by unfair competi
tion. But so far no joint arrangements have been made by insurance
carriers for maintaining, by all insurers, minimum standards of medas “ The conclusion is inescapable that most of these doctors are selected or retained for their legal ability
in defeating employees’ claims rather than for their medical skill in healing their injuries.” (Walter F.
Dodd: Administration of Workmen’s Compensation, New York, Commonwealth Fund, 1930, p. 491.)
This statement is based upon surveys in industrial centers.
Idem, p. 491.
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Monthly Labor Review—January 1939
ical supervision applicable both to the treating service and the con
duct of medical witnesses. The carriers which have superior medical
supervision, based upon high standards of performance and ethics,
naturally look upon this superiority as one of their competitive advan
tages over other carriers, to be stressed when presenting their service
features to employers who are interested in securing fair and compe
tent attention both to the injuries and claims of workers. On the
other hand, until more uniformly fair medico-legal service is rendered
by all insurers, the report of unfairness at the hands of any carrier
causes workers to look upon insurance adjusters and doctors with sus
picion, and at times to be noncooperative in the curative program.
The element of suspicion has consequently become a factor in the
medical care of workers, and is a recognized and costly source of
neurosis and delayed recovery. In the absence of legislation imposing
upon carriers minimum standards as to organization for service to
injured workers, the solution of this problem awaits, in part, the
realization by compensation insurance carriers that they have com
mon interests in the supervision of the medical phase of the compen
sation system. But in the absence of cooperative action for main
taining standards of service and practice, attention may be directed
to the example of those insurance carriers which, instead of making
their medical supervision a subordinate feature of the claims depart
ment, have set up their medical department as a scientifically minded
agency for supervision, research, and preventive activity, and which
give both pre-employment and continuation training to their claims
examiners.
Summary of Main Points in Medical-Aid Experience
The provision for medical aid, if any, in the early compensation
laws was meager, but by 1937 in many States full medical aid was
usually furnished either in compliance with legal requirements or was
given, in excess of requirements, for economic or humane reasons by
insurance carriers and employers. The placing of the provision for
full aid uniformly upon the basis of legal right has been urged by the
National Conference on Labor Legislation. Presumably, with the
advance in medical science, the quality of care actually received by
the injured workers has improved, but there is little statistical infor
mation in the compensation offices for measuring such improvement,
and medical directors sum up the situation by saying that there is
some very good surgery done, and some very bad surgery. Compen
sation officers seldom interfere with treatment except upon specific
complaint, usually because it has not been “the custom” to do so.
Serious complaint in regard to medical-aid administration is con
fined to a few jurisdictions and more particularly to the largest met
ropolitan areas. It is probable that medical care is in many cases
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very inadequate in some States having a substandard medical-aid
statutory provision, where low-paid workers have not complained to
the authorities because they have expected little or did not know
their rights. In most areas it would be impossible to learn the exact
situation without a special field study of the care that is actually
given. A survey of medical aid in Pennsylvania, made in 1934, dis
closed “a widespread judgment on the part of workers that they are
requested to resume work before they are fully recovered.” 27 In this
connection, however, it must be noted that many physicians consider
that the return to the working exercise and atmosphere is a necessary
part of the patient’s cure, and one of the most difficult tasks of super
vision is persuading employers to provide suitable light work for a
recuperating employee. The complaint mentioned does point to un
developed techniques and opportunities for the “after care” of con
valescent workers.
Although informed and thorough supervision of medical aid is of
vital importance to workers, adequate supervision may not always be
found even in jurisdictions making legal provision for full medical
care. It is true of the supervision, as of the care, that some is good
and some is deficient. The main roots of the difficulty are inade
quate support of supervision, lack of a training program and standards
for the administrators, and a legalistic conception of the work
men’s compensation system. Workmen’s compensation administra
tion touches a number of the sciences and arts, among which are law,
medicine, engineering, and economics. Its difficulties come to a head
in the medico-legal phases of administration. In the State offices, the
necessity for adequate pre-employment and continuation training for
work of such responsibility and difficulty has seldom been recognized.
The medical-aid system has too often operated in an atmosphere of
conflicting interests, not conducive to rapid and complete restoration
of injured workers. The Cullman Committee (New York) said: “The
fine art and science of healing are lost in the compensation battle.” 28
Instances of profiteering under workmen’s compensation have caused
some labor leaders to emphasize, when discussing compensation prob
lems, that the compensation acts should be for the benefit of injured
workers instead of for doctors, lawyers, commercial agencies, and
insurance carriers. Examples of unfair treatment of injured workers
have injected an element of suspicion into the workers’ minds, and
caused them to concentrate upon protecting themselves against under
estimates of their disabilities. Under existing types of claims pro
cedure in the States, especially in controverted cases, greater attention
is sometimes given to disability evaluation than to checking upon the
« Pennsylvania Department of Labor and Industry. Special Bulletin No. 40: The Results of Work
men’s Compensation in Pennsylvania. Harrisburg, 1934, Part I-b, p. 96.
For an account of this and other investigations of medical aid in New York, see Dodd: Administration
of Workmen’s Compensation, N ew York, Commonwealth Fund, 1936 (p. 464).
28
115652— 39------ 4
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Monthly Labor Review—January 1939
most complete possible restoration under approved surgical practices.
This is “putting the cart before the horse.” It is clear that it would
be better for all concerned if paramount attention could be given to
assuring the most complete cure possible and planning after-care
programs where needed. To change this situation would require, for
one thing, the adoption of a claims-administration system operating
in a diagnostic instead of a controversial atmosphere. It is recog
nized, of course, that much of the medical care of injured workers has
been excellent. This does not, however, relieve the loss and suffering
of workers whose cure has been delayed and disabilities aggravated
by the wrong type of medical care, or whose cases have been closed
without attention to discoverable causes of future complications.
Few of the compensation commissions are equipped for the statis
tical, research, and preventive activities of a medical program. There
is reason to believe, although it is impossible to prove in the absence
of surveys and experiments, that much of the present compensation
loss and medical expense could be saved by comprehensive super
vision guided by research. Such estimates are based, in part, upon
inquiries by industrial surgeons into heavy losses attributable to the
infection of injuries which, if promptly and properly treated, would
have caused no absence from work. Moreover, it is well known that
most small industrial plants are “ill equipped physically to cope with
toxic fumes, and poorly equipped financially to provide for adequate
plant hygiene.” 29 Many small plants in some jurisdictions are almost
untouched by State supervision, because of inadequate provision for
inspection, and as a rule there has been little coordination between
the medical and engineering supervisory services, where such are fur
nished by compensation commissions in the course of injury-preven
tion programs. In a few jurisdictions which have occupational disease
coverage, provision for industrial hygiene research and supervision has
been made. There are indications of increasing alertness to a more
comprehensive medical program for the prevention of injuries, fostered
by recent demands for more effective and complete occupational
disease coverage under workmen’s compensation laws.
!» Industrial Medicine, September 1938, p. 545; see also American College of Surgeons, Medical Service in
Industry and Workmen’s Compensation Laws, Chicago, 1938.
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Federal Reserve Bank of St. Louis
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6
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Industrial Relations
WORKERS’ ATTITUDES ON WORK SHARING AND
LAY-OFF POLICIES IN A MANUFACTURING FIRM
By W. R upert M aclaurin,
D ir e c to r , I n d u s tr ia l R e la tio n s S e c tio n , M a s sa c h u s e tts
I n s titu te o f T e c h n o lo g y
THE problem of designing and carrying out a lay-off policy satis
factory both to workers and to management has recently been given
increasing attention. Yet neither employers nor trade-union leaders
are in agreement as to the best policy to follow.1 Moreover, while
various compilations have been made which show the different types
of curtailment policy used by industry,2none of these reveal how these
policies are regarded by the workers. Studies indicating the attitudes
of the workers toward different types of policies need to be made if
we are really to understand what policies have been most effective.
Although the present study raises more questions than it answers, it
throws light on the points of view of a certain group of workers on lay
offs and thus may be helpful in judging curtailment policies that are
being used in other companies. However, it should be borne in mind
throughout that the attitudes expressed represent only the opinions
of a particular group of workers in a particular situation.
This article is based on the tested attitudes of a group of workers in
a unionized shop as to the method that should be followed in m ak in g
lay-offs. The workers studied were employed in two plants of a large
manufacturing firm referred to, hereafter, as the “I company.”
The employees in these two plants are in the main semiskilled or
skilled native American workers of a high level of intelligence. About
one-third of the “hourly rated” working force of 7,000 was laid off
between October 1937 and July 1938. Data on the attitudes of the
workers toward the policy followed in making lay-offs were available
through a series of votes on curtailment policy which were taken
under the auspices of the union. In addition, use was made of a
questionnaire distributed among selected union members and checked
1For a recent summary of lay-off policies in different industries see The Seniority Principle in Employment
Relations, Industrial Relations Section, Princeton University, M ay 1938.
J E. g. National Industrial Conference Board, Lay-ofl and its Prevention, 1930, and Curtailment, Lay-off
Policy and Seniority, January 1938.
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Federal Reserve Bank of St. Louis
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48
Monthly Labor
R e v ie w —January
1939
by extensive interviews with the union representatives in the two
plants.3
The two plants of the X company presented a particularly favor
able opportunity to discover the preference of workers in regard to
curtailment methods where no rigid lay-off rule had been adopted.
Neither the management nor the union had attempted by means of
propaganda to advocate any set policy for lay-offs. Both sides had
repeatedly stated that the ideal policy should give weight to a com
bination of factors.
Union-Management Relationship in Company Studied
To understand this study it will be necessary to give some back
ground on the union-management relationship in the two plants.
From 1918 to 1934 the plants had operated under an employeerepresentation plan. In 1934, however, at an election supervised by
the Regional Labor Board the employees voted in a proportion of
two to one in favor of joining a newly organized union. In 1936 the
new union helped to form a national union, which shortly thereafter
affiliated with the C. I. O. By October 1937, the X company local
reported that over 90 percent of the hourly rated employees in the
two plants were dues-paying members.
Although relations between the new union and the management
were somewhat strained at first, they have settled down to an amicable
working arrangement. There has been an unusual effort on both
sides to cooperate as far as possible. From the beginning, the union
announced a policy of exhausting every possible method of adjusting
a dispute before resorting to a strike.4
Workers’ Acceptance of Company Lay-off Policy
The company’s conduct of lay-offs made necessary by the recent
business depression is illustrative of the*way in which the company
and the union have cooperated in working out their joint problems.
The management’s announced method on lay-offs is contained in the
booklet of company policy:
In selecting employees to be laid off, the following factors shall be given
consideration:
1. Length of continuous service.
2. Ability, skill, and experience.
3. Family status—number of dependents, etc.
3
Profs. D . McGregor and Douglass V. Brown of Massachusetts Institute of Technology worked on
parts of this study. Dr. McGregor was largely responsible for designing the questionnaire which was sent
out to a large group of X company workers. His psychological analysis of this questionnaire study is to be
published in the near future in the Journal of Abnormal and Social Psychology.
* “ Who overcomes by force hath overcome but half his foe” was suggested as a motto in the union news
paper.
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Federal Reserve Bank of St. Louis
Industrial Relations
49
In cases where the second and third factors, taken together, have relatively
equal weight, those with the shortest period of continuous service will be laid
off first.5
Lay-offs were not an issue at the X company during the early years
of the union. It was not, therefore, until October 1937 that the
union was forced to decide whether or not to accept the manage
ment’s proposal to lay off workers on the basis of the announced
company policy. The membership appointed a subcommittee to
study the question. Its report is given in part below:
The committee recommends that we adhere to the present policy of the com
pany.
The reasons: 1. Under the present plan, responsibility lies with the manage
ment. Since we have had a union we have had ample opportunity to take up
any case when an injustice seems likely. History of cases since the union has
been in existence, has proven that in choice of lay-off there has not been 1 error
in 20 * * *.
2. We believe it is impossible to get rules to cover all combinations—service,
skill, building, group, job, and dependents—and it would still leave just as much
argument, even if such rules were applied, as at present. If we tie a rule strictly
to a job, to a department, or to a building, we will prevent elasticity— which
would make it necessary to have so many exceptions to such rules that it would
be lost in a maze of written data. We have found that each individual case rep
resents a peculiar combination of factors.
3. History has shown that if strict seniority were applied by plant alone, by
transferring a man to another department and displacing another employee with
less service, the employees in that department would not welcome the new
comer * * *.
To sum up, the committee believes that with a strong union we can insist upon
justice being done, even though we do not expect to please everybody—for lay
off is always a sore problem.
The membership accepted this report and agreed to let the manage
ment decide who should be laid off on the basis of the announced
company policy. Since then the union has confined its action largely
to protesting individual lay-off cases.
Procedure Followed in Lay-offs
The period in which the recent lay-offs were made in the X com
pany extended from October 1937 to September 1938, with the
principal lay-offs falling in the 3 months—December, January,
and February. The short-service workers were the first to go, but
in some of the departments many of the longer-service workers also
had ultimately to be laid off. Although no attempt was made to
provide strict plant seniority, all workers with over 10 years’ service
5This formula is somewhat similar to the standard lay-off provisions in C. I. O. agreements in the steel
industry except that the latter include two additional factors. The factors that they consider are (a) length
of service, (b) ability, (c) physical fitness, (d) need, (e) place of residence. “Where factors (b), (c), (d),
and (e) are relatively equal, length of continuous service shall govern.” The steel agreements are typical
of many of the new C. I. 0 . seniority clauses. However, they go considerably less far in protecting seniority
than many of the agreements of the United Automobile Workers and the United Rubber Workers.
For a defense of the more rigid seniority rule, see “Seniority, Major Item in Auto Contracts,” by Morris
Field, in The United Automobile Worker, February 26,1938.
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M o n th l y L a b o r R e v ie w — J a n u a r y 1 9 3 9
and some with less were transferred, if a place could be found in
another department. The problem of transfer was particularly
difficult because of the wide variation in the type of work done in
the two plants. The lay-offs of hourly rated workers in the main
plant during the year ending September 30, 1938, by length of
service, are given below and compared with the number of hourly
workers on the pay roll as of September 30, 1937.®
Hourly rated
workers,
Sept. SO, 1937
Under 1 year’s service
_ -. __________ 1,314
_________
967
1 to 2 years’ s e r v i c e ___
95
2 to 3 years’ service...... .......... .......... _________
_________
29
3 to 4 years’ service__
45
4 to 5 years’ service___
_ _ __ _________
__________
323
_
5 to 10 years’ service_____
10 years’ service and over__ ____ __________2,465
T otal. ___ __
_ _______ __________5,238
,
Hourly rated
workers
laid off
976
784
55
9
15
57
43
1, 939
It is apparent from these figures that, in practice, length of service
was given the greatest weight in making lay-offs.7 In most depart
ments it required very exceptional ability or exceptional need on the
part of a short-service worker to counterbalance 2 additional years
of service on the part of an alternate for lay-off. The men with over
5 years’ service were retained rather than the men having less than
5 years’ service, and the men with over 10 years’ service were only
in very rare circumstances laid off instead of men with less than 10
years’ service. On this point the management’s unofficial position was
that, if a man had been retained more than 5 years, it was the fault of
the department if there was any question about his ability, and it must
pay the price of retaining him unless, of course, he was flagrantly
inefficient.
The only important exceptions to the policy of stressing length of
service occurred when the choice lay between retaining a single girl
and a married woman with a husband working. When the husband
had steady work the tendency was to favor the single girl even though
there was considerable difference in length of service.
The Workers’ Attitudes
In order to find out what the workers thought about the company’s
lay-off policy and the union’s role in determining that policy, a
tentative questionnaire was submitted to the union councilmen and
« The lowest point for the main plant’s pay roll was reached on September 3, 1938. B y September 30,
when these figures were compiled, 168 workers had been rehired.
i Of the 100 hourly rated workers laid off with more than 5 years’ service, 40 were married women with
husbands working. We inquired from both the union and the company into the circumstances of a sub
stantial number of the remaining 60 cases. Most of these workers were laid off because they lacked ver
satility and no other place could be found for them. The two plants of the X company have many special
ized operations which makes the problem of transfer particularly difficult.
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Federal Reserve Bank of St. Louis
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Industrial Relations
to several officials of the company. In revised form, it was then
(February 1938) mailed to every third person on the alphabetical list
of union members. As the names of the workers who had been laid
off remained on the regular union membership list, the questionnaire
reached a sample of both those in the plant and those laid off.
RESULTS OF QUESTIONNAIRE
The analysis of the questionnaire is based on replies from a repre
sentative cross section of the workers. The union gave the ques
tionnaire considerable publicity in its newspaper 8 and suggested that
it would provide an authoritative answer to some of the lay-off
questions which were puzzling its members. That the answer did
represent, as accurately as is possible in any questionnaire, the
attitude of the workers who replied is indicated by the very high
degree of internal consistency in the answers received. This was the
more significant, as a number of related questions were asked about
particular lay-off policies which gave considerable scope for contra
dictory answers.
The most significant answers to the questionnaire, from the 550
workers whose answers were analyzed, were as follows.9
« Published weekly and distributed free to all X company workers.
» The sample is compared below with the hourly rated workers in both plants as of February 1, 1938.
The comparison is only roughly accurate (due to possible errors in classification and to the failure of some 30
of the subjects to give information concerning seniority or employment status), but it is illustrative of the
kind of representation achieved.
All hourly rated workers,
both plants
•
Unemployed
sample
Employed
sample
Seniority
Total
Total
N um
ber
21
Under 1 year’s service_______________________
to 6 years’ service------------- -------------------------to 10 years’ service______________ _________
Over 10 years’ service________________________
543
1,197
433
3,200
89
52
259
T otal_________________________________
5,373
421
1
6
Hourly rated workers, both
plants; laid off since Oct.
1, 1937
N um
ber
Percent
of total
26
47
60
(1)
(1)
4.7
9. 3
(4.5)
(3.8)
1, 711
109
6.4
. 3.9
7.4
1,019
644
7.8
12.0
8.1
Percent
of total
22
It is difficult to be certain of the representativeness of this sample, but the distribution of sexes, ages, and
amounts of seniority, and the proportions returned from the various departments of the plant suggest that
the replies represent a rough cross section of all the hourly rated employees (salaried workers are not heavily
represented in the union).
It is apparent from the table thatVsm aller percentage of returns was received from the workers with less
than 1 year’s service than from the workers with more than a year’s service. This may have been because,
in the X company, the workers with more than 1 year’s service were the more active union members and,
therefore, more cooperative with the union in answering the questionnaire.
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Monthly Labor Review—January 1939
1.
What importance do you think should be given to need, to
seniority, to skill and ability in selecting men for lay-off? 10
Percent
Seniority, need, and ability should have equal importance________________
All three should be considered, but unequally-----------------------------------------Only two factors should be considered, and the third not considered at all__
Only one factor should be considered, and the other two not considered at alL
25
60
10
5
Of the 5 percent who believed that only one factor should be con
sidered, almost all felt that that factor should be seniority. Among
the 60 percent who considered that all three factors should be con
sidered, but unequally, a large proportion felt that seniority should
be given the greatest weight, but there was also agreement that
considerable weight should be given to need, and some weight to
ability.
2. Do you favor some form of “share the work” policy?
Percent
“ Yes” ______________________________
“ No” _______________________________
97
3
3.
How much continuity of service should employees have in order
to be considered for transfer to other departments before being laid
off?
Percent
1 year or less________________________
2 to 4 years_________________________
5 to 9 years_________________________
10 to 14 years_______________________
More than 15 years__________________
10
15
34
35
6
4.
If a certain number of men are to be laid off, should the union
or the company decide which ones will be laid off?
Percent
The union_________________________________________________________•.___
The company_________________________ _______________________________
The remaining 35% wrote in “ The union and the company” (or a similar
phrase).
30
35
5. Do you agree with the company’s lay-off policy in general?
(Of the total, 67, or 12 percent, did not answer. Of the rest, the
percentages were as shown below.)
Percent
Y e s ________________________________
N o_________________________________
64
36
6. Do you think there has been favoritism shown in selecting the
employees to be laid off during the past 6 months?
Percent
Often_______________________________
Seldom_____________________________
Almost never_______________________
10
24
48
28
To record the answers, a scale was used in the questionnaire which permitted the worker to indicate
his opinion of the importance of each of the three factors.
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Industrial Relations
7. Which of the following types of lay-off policy would you prefer?
Percent
(a) Definitely stated rules applied to everyone___________________________
(b) Definitely stated rules to which occasional exceptions are m ade_____
(c) A policy of deciding each case on its own merits______________________
31
19
50
8.
Here are a few illustrations of the problems that are faced in
deciding which workers should be laid off. How would you decide
them?
Case I: Two men who have equal ability. Mr. A. has no dependents; he has
4 years’ continuity of service. Mr. B. has 3 dependents; he has 1 year’s conti
nuity of service. Which one do you think should be laid off?
Percent
Would lay off Mr. A ______ __________
Would lay off Mr. B _________________
54
46
Case II: Two women who have equal ability. Mrs. E. has 10 years’ conti
nuity of service; her husband is working full time; she has two dependent children.
Miss F. has 2 years’ continuity of service; she has no family and is living alone.
Which one do you think should be laid off?
Percent
Would lay off Mrs. E ________________
Would lay off Miss F ________________
84
16
Case III: Two men who have equal continuity of service. Mr. G. has 2
dependents; the company rates him as a "fair” operator. Mr. H. has no depend
ents; the company rates Mm as an “excellent” operator. Which one do you
think should be laid off?
Percent
Would lay off Mr. G _________________
Would lay off Mr. H _________________
34
66
The principal conclusions from this questionnaire may be sum
marized as follows:
1. In general the workers endorsed the company’s flexible policy
on lay-offs. Although there was a tendency to weight seniority
more heavily than need and ability, it was not very pronounced.11
2. Practically all the workers wanted some consideration given to
need.
3. On lay-off decisions involving a choice between a single girl
and a married woman with a husband working, there was a consider
able opinion in favor of laying off the married woman, more or less
regardless of seniority. Even among the men and women whose
families would have been affected by such a decision there was a
definite sentiment in favor of laying off the married women.
4. The workers did not believe that ability should be weighted
as heavily as either seniority or need. This position was clarified
11 The longer-serviee workers tended to place somewhat greater emphasis on seniority and the workers
with a number of dependents to place greater emphasis on need. This tendency, however, was not so
pronounced as might have been expected. It was more evident among those with long service than among
those with many dependents. The workers with less than 1 year’s service and those with 1 to 6 years’
service showed very similar attitudes on the average. They tended to weight both need and ability re
spectively, slightly more heavily than seniority. The workers with 6 to 10 years’ service and those with
more than 10 years’ service tended to weight seniority more heavily than either need or ability. In all 4
groups there was a tendency to give need slightly greater weight than ability.
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Federal Reserve Bank of St. Louis
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Monthly Labor Review—January 1939
somewhat by the interviews that were used to supplement the ques
tionnaire. The workers generally agreed that it was perfectly fair
to retain a short-service worker of exceptional ability in preference
to a somewhat longer-service worker with less ability. There was a
widespread feeling, however, that the foreman did not judge ability
fairly and if given much latitude would use ability ratings to play
favorites. This feeling was also expressed in some of the comments
written by the union councilmen on the questionnaires:
Your ability is according to how the boss likes you.
Favoritism is being shown where it can be covered up by the ability pretense.
Too controversial.
The union has no opportunity to judge on ability.
5. Analysis of the answers to the questionnaire according to the
length of service of the respondents showed that, even among workers
with more than 10 years’ service, 90 percent favored sharing the work
to some extent before any lay-offs were made.
6. Two-thirds of the workers did not want the union alone to control
lay-offs.
7. Although the majority of the workers did not believe that much
favoritism had been shown in selecting men for lay-off, one worker
out of every four believed that favoritism had been shown “often”
in recent lay-offs. A careful examination of a large number of in
dividual lay-off cases in the plant, however, indicated that favoritism
had been exercised very much less than the workers believed.12
Therefore, if this vote is typical of workers’ attitudes it is extremely
difficult to make all workers believe that favoritism is not an important
factor in lay-off decisions.
RESULTS OF BALLOT IN ONE DEPARTMENT
A vote taken by the union at a somewhat later date in one of the
principal departments in the main plant of the X company affords
an opportunity to analyze further some of the workers’ attitudes on
lay-offs, especially with regard to work sharing. The occasion was a
12 In the small plant a complete list of all the employees was available with information on length of service,
ability, marital status, and number of dependents. One of our investigators attended the conferences which
were held by the employment manager and the department heads to determine who should be laid off.
Whenever continuity of service was not strictly adhered to in making lay-offs, he ascertained the reasons for
the exceptions.
A complete record was also obtained of every employee in the department of the main plant in which the
principal lay-offs occurred. The lay-offs were followed from October 1, 1937, to June 1,1938, in which period
practically all of the lay-offs were made. As in the small plant, we attempted to learn the reasons for not
following the principle of seniority. In this process almost all of the foremen and union councilmen in
the department were interviewed and asked questions about specific cases. A similar check was made on
the four other departments of the main plant in which many lay-offs occurred. In these departments, how
ever, only a few of the councilmen were interviewed as there were relatively few grievances resulting from
the lay-off procedure.
Finally, the records for all the union grievance cases concerning lay-offs in both plants were examined in
detail for the period between October 1, 1937, and June 1,1938. Cases where favoritism was indicated were
discussed with union officials and the management, and the facts determined as far as possible. It is in
teresting to note that while we discovered a few cases which indicated favoritism, these were frequently not
the cases which the union protested.
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Federal Reserve Bank of St. Louis
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Industrial Relations
projected lay-off of 137 workers in one large department which had
been particularly hard hit. A direct labor force of 1,060 (as of Sep
tember 30, 1937) had already been reduced to 580, and hours had been
shortened gradually from 40 to 30. Early in March 1938 the manage
ment announced that 137 workers would be laid off in order to prevent
a further reduction in hours. In response the union requested that
a secret ballot be taken to determine whether the workers would not
prefer to share the work further. The management agreed.
The work of this particular department is done largely on two floors
and in the balloting the first floor and the second floor voted quite
differently. On the first floor 390 votes were cast; on the second
floor 165 votes. The results of the ballot were as follows:
Percent of votes cast on—
First floor Second floor
(a) The lay-off as proposed by management (about 137
workers), 32 hours for those left_____________________
6
(b) Lay-off of approximately 35 in building (less than 5 years’
service) and shorter hours if necessary________________ 14
(c) Lay-off of approximately 70 in building (less than 10 years’
service), and shorter hours if necessary_______________
7
(d) No lay-off whatsoever, shorter hours if necessary________ 42
(e) No lay-off whatsoever, shorter hours if necessary, and vaca
tions to start April 1st___ _____________________
31
17
29
19
21
14
It should be noted that choices (a), (b), and (c) involved some
lay-off, (d) and (e), none. Alternative (e) called for an extreme form
of work sharing, as under it the workers were to be required to take
their vacations in the spring rather than in the summer in the hope
that, by summer, business would have improved sufficiently to make
a lay-off unnecessary. For the long-service workers to vote for (e)
required considerable altruism. The early spring is not nearly so
attractive a vacation period in this community as the summer.
Moreover, it was rumored at the time, although not officially an
nounced, that unless business improved markedly the company would
shut down in the last 2 weeks of August and that those who had
already had their vacations would get no pay during the shut-down.
As a result of this vote the company agreed to treat the first and
the second floors as separate entities on both lay-offs and vacations.
However, as the management believed that hours would be altogether
too low if no lay-offs at all were made on the first floor, the workers
there with less than 5 years’ service were laid off. A special vote was
also taken on the first floor as to whether vacations should start on
April 1, and was decided in the affirmative.
To throw light on the reasons for the difference in the voting on the
two floors, the votes were analyzed by working groups. Apparently,
the main reason for the difference was that the first floor was working
about 30 hours a week, while the second floor was averaging around
25 hours. The long-service workers were willing to share the work
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Federal Reserve Bank of St. Louis
56
Monthly Labor Review—January 1939
with others at 30 hours a week, but not at 25. That the vote on
the first floor was genuinely altruistic is evidenced by the fact that
the short-service workers were in the minority in all working groups.
The workers knew that lay-offs would be based primarily on length
of service and that very few if any workers with more than 10 years’
service would be laid off. On the first floor, of those voting, about
70 percent had over 10 years of service.
One very large working group on the first floor registered almost a
unanimous vote (92 to 2) against any lay-offs—such a high percentage,
in fact, as to be surprising. Two-thirds of these workers had over
10 years of service, but there were 23 members of the group who had
less than 3 years’ service. This was much the largest aggregation of
short-service workers left on the first floor. The entire group of
94 workers was averaging about 29 hours a week at the time of the
vote. The three councilmen who represented these workers may
have influenced the vote indirectly, as they were particularly active
in union affairs and were known to favor work sharing. It is more
probable, however, that the older service workers in this group were
particularly reluctant to vote for a lay-off because a lay-off would
have directly affected their working companions.
The difficulties of designing a lay-off policy that will be satisfactory
to everybody are illustrated by two other groups of workers on the
first floor. These two groups were doing the same type of work and
working the same number of hours (32 at the time of the vote).
Group A, with 3 workers of less than 10 years’ service, voted 6 to 14
against any lay-off. Group B, with no short-service workers, voted
19 to 5 in favor of a lay-off.
The vote on the first and second floors of the department was
taken in March, and the vacation plan was instituted on April 1.
Orders continued to decline thereafter and by July the management
was forced to decide whether to allow hours to remain at the unsatis
factory average of 22 for the first floor or to lay off more workers.
The union called a meeting of the first-floor workers to decide the issue.
Attendance was small. A show of hands was requested and a motion
was carried for no lay-offs and continued work sharing. To this the
management replied that it was not satisfied that the decision repre
sented the majority opinion. The union then suggested that a secret
ballot be taken of all the workers on the first floor. The workers
voted 236 to 150 in favor of a further lay-off. Vacations and work
sharing had been tried in the hope that business would improve.
But when recovery did not take place the workers believed that a
continuation of the 22-hour schedule was unsatisfactory.
The pronounced difference in the vote in the union hall and the
secret ballot taken in the plant indicates the superiority of the secret
ballot participated in by all workers on questions of workers’ atti
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Federal Reserve Bank of St. Louis
industrial Relations
57
tudes. Moreover, on an issue which involves the charge of selfishness,
a vote by a show of hands is not very satisfactory.
Points for Consideration in Formulation of Lay-off Policy
In drawing any conclusions from this article it should be stressed
again that the evidence is based on opinons of a particular group of
workers in a particular situation. Under different circumstances this
same group of workers might have expressed entirely different opinions.
However, the X company study suggests that a lay-off policy which
allows considerable latitude in interpreting the circumstances sur
rounding each case may be preferable to any rigid rule. From the
worker’s standpoint the advantage of a rigid seniority rule is that it
is not subject to interpretation and therefore provides protection
against favoritism or discrimination,13 But this study indicates that,
at least in cases where a union is strong and is dealing with a trust
worthy management, it is not necessary to adopt such a rule in order
to prevent discrimination and to give workers an equity in their jobs.
The present study also shows that among certain groups of workers
there is a strong feeling that “need” should be taken into considera
tion in lay-offs. Yet to obtain an accurate basis for weighting need
virtually requires a day-to-day picture of the number of each worker’s
family, their ages, income, and present employment. In one X com
pany case a woman, threatened with lay-off because her husband was
working, continued to deny categorically that she was married even
when confronted with a copy of her marriage certificate obtained
from the city hall. In many large concerns it may be impossible to
get a reasonably accurate picture of these facts for all the employees.
That it was possible at all in as large an organization as the main
plant of the X company was due to a number of factors. The plant
is located in a stable community and the voluntary turn-over of
employees has been very small for a good many years. Most of the
workers live in the town and frequently several members of the family
are employed by the company. In most cases, therefore, both the
foremen and the union councilmen have a fair knowledge of the home
conditions of the workers whom they represent.
One of the most controversial problems arising out of an attempt to
give weight to need is the question of how to handle the cases of
married women whose husbands are working. The situation changes
frequently. There were a number of X company cases in which the
13 A number of unions have induced employers to adhere to a rigid seniority procedure. M ost union
agreements, however, provide for more flexibility. The railroad brotherhoods and the International
Typographical Union are the best-known union exponents of the seniority rule. The United Rubber
Workers have been among the more successful of the new C. I. O. unions in obtaining seniority clauses
in their written agreements. This was partly because the seniority principle on lay-offs had been accepted
by the rubber industry before unionization, although it had not been applied rigidly.
For a description of lay-off procedure under a seniority rule in the Goodrich Rubber Co., see article by
A. C. Sprague in Personnel, M ay 1938.
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M o n th l y L a b o r R e v ie w — J a n u a r y 1 9 3 9
husband was working in another industry and had been laid off four
or five different times by various concerns in the course of 2 years
of depression. The management had to make certain in such cases
that the married woman was really in a better situation than the single
girl or the widow who might be alternative choices for a lay-off.
It was the workers themselves rather than the management or the
union officers who were insistent that the married women with hus
bands working be laid off rather than the single girls,14 There was a
strong social feeling in the factory that the married women whose
husbands were working belonged at home. Whether logical or not,
this feeling existed and had to be faced.
It is by no means established, however, that any policy of discrim
inating against married women with husbands working is desirable
except in cases where all the facts are known and the married woman
can be laid off with clearly less suffering than the single girl. Married
women are employed for the most part because they need to make a
living. A study made of the financial responsibilities of 28 married
women employed by a New England firm indicates the pitfalls of any
clear-cut rule of discrimination that does not take into account the
individual circumstances. The investigators found that in all but
2 of these 28 cases the family could not get along without the wife’s
earnings. In one case the wife had to help her mother and four young
sisters, while the husband was helping his father and unemployed
brother.15
One other attitude of the X company workers that is of considerable
significance was the widespread desire for work sharing. Not only
was this indicated in the answers to the questionnaire in which 97
percent favored some form of “share the work” policy, but the ballot
already analyzed of the first-floor workers in one of the large manu
facturing departments also went surprisingly far in favoring work
sharing. And although these workers reversed their decision in
July, when hours had fallen to 22, there was little evidence in the
interviews to indicate that they would not repeat the earlier vote in
similar circumstances. Still further evidence of the desire for work
sharing was obtained from a vote (not mentioned before) that was
taken under the auspices of the union on a proposed lay-off in one of
the departments of the smaller plant. This particular group voted
45 to 28 in favor of sharing hours to 24 a week in order to avoid any
lay-off whatsoever—a decision which involved sharing work with
apprentices of less than a year’s service.
14 Very few, if any, trade-union agreements discriminate against married women with husbands working.
B y contrast, quite a number of companies that are not dealing with a union have such a policy, frequently
as a result of pressure from the employees themselves.
15 U. S. Department of Labor, Women’s Bureau, Gainful employment of married women, Washington,
August 1936, p. 7.
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I n d u s t r ia l R e la tio n s
59
In conclusion it should be stressed that a lay-off policy satisfactory
for the workers studied in the two plants of the X company might very
well not be satisfactory in the same form for many companies.16 Like
other aspects of company policy, a lay-off program should be designed
to suit the particular conditions of the plant. However, many pro
gressive firms operating under similar conditions have adopted quite
different lay-off policies with little or no attempt to determine what
the workers prefer. Studies in companies operating under different
types of policies need to be made on workers’ attitudes toward work
sharing, seniority, need, and ability, as factors in a lay-off policy.
In particular, more accurate information is needed on the attitudes
of the workers in companies that have been operating for a consid
erable length of time under a rigid seniority rule and in companies
that have adopted a rigid lay-off formula.17
The present study suggests a number of questions that should be
considered in assessing any particular lay-off policy.
1. The principle of seniority was introduced by the unions in the
railroads and in the printing industry when discrimination in lay-offs
was much more general than it is today. The evidence in this article
indicates that there was no strong desire among the particular workers
studied for a rigid seniority rule or for a rigid lay-off formula. But
unless a company has succeeded in convincing its workers that it is
making every effort to be fair, it is very doubtful if a lay-off policy
which allows the management considerable discretion will be satis
factory to the workers.
2. If the management is making every effort to be fair, a lay-off
policy which is not too formalized and permits of judging each case
on its own merits may prove most satisfactory to both workers and
management in the long run.
3. The workers may well be more satisfied with a lay-off policy
that combines work sharing and lay-offs than with exclusive reliance
on either. The X company workers demonstrated a high degree of
altruism in wanting to share their excess earnings above a subsistence
level with the shorter-service workers. If carried too far, however,
work sharing may result in general discontent.
4. When lay-offs have to be made, length of service should probably
be given first consideration. In no other way can a worker feel that
he has earned an equity in his job. Moreover, the fear of unemploy
ment in old age, and the traditional respect of young people for their
16 It is interesting to note, however, that the conclusions that can be drawn from the X company expe
rience tend to support the generalized statements of the National Industrial Conference Board made in its
January 1938 survey already referred to (Curtailment, Lay-off Policy and Seniority) and amplified later in
its Service Letter of September 30,1938 (Second Thoughts on Seniority Provisions).
17 Typical examples of lay-off formulas are found in the American Steel & Wire Co. and in the Interlake
Iron Corporation. In these companies lay-offs are made as a result of a mathematical calculation which
gives a specific number of points to various grades of ability and various degrees of length of service.
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M o n th l y L a b o r R e v ie w —J a n u a r y 1 9 3 9
elders are powerful factors leading even the young to welcome a policy
that gives greater consideration to the older worker.
5.
That ability must be considered in a lay-off policy was accepted
by almost all the X company workers included in the present study.
But the workers were suspicious of management’s methods of judging
ability. It will probably remain extremely difficult to convince
workers that ability ratings are fair, unless they believe that all the
company officials from the foreman to the works manager are fair.
It is these aspects of a labor policy which present the greatest challenge
to progressive management.
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Productivity o f Labor and Industry
LABOR PRODUCTIVITY AND WORK OPPORTUNITIES
IN COTTON GROWING
THE average production of cotton in the United States from 1917 to
1921 was substantially the same as the average from 1933 to 1936,
but the amount of labor required fell substantially. The estimated
amount of labor required during 1917-1921 averaged 3,089,000,000
man-hours, and during 1933-1936, only 2,489,000,000 man-hours.
When the development of competing materials and the rise in the
production of cotton in other parts of the world are taken into account,
there is an uncertain basis for an expansion of demand for American
cotton, while, at the same time, there are readily available the means
for extensive further reductions in the amount of labor required to
produce a given amount of cotton. These are some of the facts
emphasized in a recent study by the National Research Project,
U. S. Works Progress Administration, of changes in technology and
labor requirements in the production of cotton.1
During the past 30 years there has been a significant shift in the
geographical distribution of cotton production. The acreage in the
eastern cotton-producing areas was almost cut in half; the Delta area
substantially maintained its acreage in the face of some reduction in
acreage for the country as a whole; and the Western and irrigated
areas gained significantly. There were important changes also in
man-hours required per acre, in total man-hours, in the amount of
cotton produced, and in man-hours per bale of cotton, both in the
United States as a whole and in the principal cotton-growing areas.
i U. S. Works Progress Administration. Changes in Technology and Labor Requirements in Crop
Production: Cotton. B y W illiam C. Holley and Lloyd E. Arnold. Washington, 1938. (National R e
search Project, Reemployment Opportunities and Recent Changes in Industrial Techniques, Report
No. A-7.)
61
1 1 5 6 5 2 -3 9 -
-5
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M o n th l y L a b o r R e v ie w — J a n u a r y 1 9 3 9
Estimated Average Annual Cotton Acreage, Production, and Labor Required in the
United States and in M ajor Cotton-Producing Areas, 1907-36 1
Major cotton-producing areas
Item and year
Acres harvested (in thousands):
1907-1L.______ ___________________
1917-21............................................
1927-31................................
1933-36......... ................ ..............
Man-hours required per acre:4
1907-11___ __________ . .
1917-21..______ _____________
1927-31......... ................
1933-36........................................
Man-hours required on total acreage (in millions):
1907-11______________
..
1917-21.....................................
1927-31................................
1933-36________ __________
Cotton produced (in thousands of bales):
1907-11_____________
1917-21..................................
1927-31..................................
1933-36...............................................
Man-hours used per bale:8
1907-11____ _________
1917-21.....................................................................
1927-31......... ............
1933-36............ ............................................
United
States 1
Middle
Eastern Eastern
Delta
Irri
Western gated
*
31,759
32,655
41,031
28,410
10,483
9,282
8, 598
5,800
2,041
2,204
2,608
1,836
6,480
6,489
8,927
6, 364
12,374
14,208
19,875
13,443
4
201
532
513
105
95
85
88
130
120
113
123
139
136
132
130
122
114
110
116
70
62
54
50
122
109
118
127
3,343
3,089
3,493
2,489
1,358
1,115
974
716
285
301
345
238
793
738
982
739
863
883
1,072
673
12,332
11,219
14,658
11,432
4,536
3,550
3,452
2,832
1,072
1,132
1,291
1,055
2,597
2, 369
3,615
2,955
3, 997
3,967
5,651
3,791
3
102
416
515
271
275
238
218
299
314
282
253
266
266
267
226
305
312
272
250
216
223
190
178
163
216
151
126
(5)
22
63
65
1 Based on data from National Research Project Farm Survey, 1936, and from earlier studies conducted by
the U . S. Department of Agriculture and by State experiment stations. Labor requirements for marketing
(when cotton was not sold at gin) are excluded from the estimates.
1Includes all cotton-producing States.
3 Includes New Mexico, Arizona, and California.
4 Hours are per acre harvested, but include estimated hours spent on abandoned acreage.
8 Less than 500,000.
«500-pound bale, gross weight (includes bagging and ties and contains about 478 pounds of lint). Labor
on abandoned acreage is included.
Various improved techniques, if put into general use, would have
reduced the labor requirements (or, inversely, increased the labor
productivity) to a much greater extent. Why have these techniques
not been more widely utilized? The principal explanation lies in
the fact that there are few other forms of employment available to
most of the farm population that has traditionally been employed
in the production of cotton, while, at the same time, most of this
farm population has found it necessary to live at so low a level of
income as to make impossible the introduction of machinery or other
improved techniques. In this connection, the authors of the study
state:
Mechanization and other technological improvements offer an avenue of escape
to those farmers who are able to take advantage of them. Insofar as they can
produce more cotton with the same labor, they may be able to maintain their
income even at the lower cotton price. It has been shown, however, that there
are limited opportunities for mechanization in many cotton areas. The indi
vidual cotton grower is likely to have but little direct consciousness of competi
tion between areas. He is aware only that cotton prices are dishearteningly low,
that he must try to do more of the work himself to avoid paying out money for
wages, and that he must deny himself and his family anything but the strict
necessities of life if he is to get along at all. The typical tenant or cropper family
(which produces little besides cotton) has less to spend for itself than half of the
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P r o d u c tiv ity o f L a b o r a n d I n d u s t r y
63
proceeds, from 6 to 8 bales of cotton, worth $40 to $60 per bale, plus the pro
ceeds from 6,000 or 7,000 pounds of cottonseed worth perhaps $30 per ton. The
small-owner family is not always or necessarily better off. It is not necessary to
dwell on these shockingly low incomes. Families have “lived” on such incomes
when they had to. But if they can they seek other lines of employment.
What are some of the alternative lines of activity for a part of the farm popu
lation in sections which are under the greatest disadvantages in cotton produc
tion? There has already been considerable shifting into vegetable crops, fruits,
peanuts, hogs, and other farming enterprises in some areas. This shifting, how
ever, is slow, with the opportunities far less than the need. Poor as it is, cotton
remains for many the best agricultural alternative available in the Cotton Belt.
Do other industries have more to offer? It would seem so, judging from the rapid
movement of industries into this area during the past 15 or 20 years. The shift
of industries to the South could ameliorate the effects of farm-labor displacement
by providing industrial opportunities for employment.
The conditions under which the cotton crop is produced are such
that there is an extreme pressure on a large proportion of cotton
farmers to abandon that field of employment. This in turn means
that there is a severe competitive pressure on industrial workers for
a sharing of opportunities for employment in that field. The result
is a tendency to depress income and living conditions of workers in
other fields of employment. From the point of view of industrial
workers and of public policy regarding standards of living, this is the
most significant inference to be drawn from the study.
*######*
EFFECTS OF CHANGES IN GRADES OF ORE UPON
LABOR PRODUCTIVITY
STUDENTS of natural resources and of problems of conservation
have frequently called attention to the declining quality of many
natural resources in the United States. The causes are twofold:
the tendency to utilize first the better and more readily accessible
resources; and the wastefulness of the Nation’s traditional mode of
utilizing resources on an individualistic and uncontrolled basis.
The country’s basic wealth in soils has suffered progressive deteriora
tion by such influences as the one-crop system in some of the Southern
States, soil erosion by floods in many sections of the country, and
erosion by wind on the Western plains following conversion of pasture
lands to tillage. The timber resources of the country have been
depleted by methods of lumbering designed for immediate exploitation
without due regard to preservation of the forests. A striking instance
of wastefulness is the petroleum industry. Coal mining has been
affected to some extent by such methods, but the vastness of the
Nation’s coal resources has made the wastefulness seem less serious.
In the case of ores, especially the nonferrous ores, the restricted
nature of the available resources has resulted in a striking decline in
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M o n th l y L a b o r R e v ie w — J a n u a r y 1 9 3 9
output of metal per ton of ore. The progressive depletion of resources
has been accompanied by the development of techniques to utilize
lower grades of ore and by significant changes in labor productivity
and employment. These topics are discussed, in relation to gold,
silver, copper, lead, and zinc ores, in one of a series of studies by the
National Research Project of the Works Progress Administration in
cooperation with the Bureau of Mines of the Department of the
Interior.1
The depletion of richer or more readily accessible resources tends,
of course, to reduce the productivity of labor used in the exploitation
of the resources, and therefore gives added significance to techno
logical improvements and accompanying increases in labor produc
tivity. In the study of changes affecting nonferrous metal mining,
it was found that—
Increased production of the principal nonferrous metal ores has been accom
panied by a startling reduction in grade over the past 50 years. For example,
approximately one-half of the Nation’s copper production today comes from de
posits that were known in 1900 but were then considered valueless because of
their low metal content. Similarly, average yields worth $5 to $10 per ton ob
tained from gold and silver ores in recent years contrast with returns of from $75
to $100 or more per ton in the newly opened camps of the West in the 1870’s
and 1880’s. Over as short a span as the past quarter century, the average yield
obtained from lead ores fell 27 percent, and even greater declines in grade have
been noted in important zinc-producing regions. Thus metal mining has had to
adjust itself to a lowering of grade of ore, and the success of this process has been
one of the important victories of mineral technology. Despite decreasing richness
of metal content per ton of ore, technical progress has produced net trends of
increased abundance and rising output per worker for all of the major metals.
The study makes some analysis of the significance of increasing
natural disadvantages and of the technological changes designed to
offset those disadvantages. It is stated that—
Ore grade is, in fact, a mixed symbol, expressing not only the metallic content
available in accessible deposits but also a content profitable to mine under existing
economic, social, and technical influences. Those with long experience in mining
frequently raise the question of why-employment readjustment is more difficult
today than 20 or 30 years ago when the typical miner moved quickly to greener
fields. The answer is that in the earlier period mining was still in the era of great
expansion, and increased work opportunities resulted from the rising production
of the more stable camps and from the opening of new deposits; these develop
ments more than offset the labor saved by technical progress. To attempt
detailed evaluation of these factors is beyond the scope of the discussion and is not
essential, for, to illustrate how changing ore tenor affects the life of mining areas,
one needs only to call the long roll of formerly great camps where pristine vigor has
waned and problems of employment and social readjustment abound in the little
communities left troublesomely stranded about them. Failure of ore grade to
1 U . S. Works Progress Administration, in cooperation with the U. S. Bureau of Mines. Mineral Tech
nology and Output per M an Studies: Grade of Ore. B y Andrew V. Corry and O. E. Kiessling. Wash
ington, 1938. (National Research Project, Reemployment Opportunities and Recent Changes in Indus
trial Techniques, Report No. E-6.)
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P r o d u c tiv ity o f L a b o r a n d I n d u s t r y
65
keep pace with the forces of depletion is the nemesis of the mining enterprise, and
on the day when the mine can no longer compete, the “ghost camp” emerges.
Although there are numerous “ghost camps/’ the process of deple
tion is usually gradual and is accompanied by “half-abandoned”
communities. In these communities relief rolls are exceptionally
large. When the process of depletion is gradual enough, and when the
depletion occurs during periods of expanding business activity, there
may be comparatively little difficulty in shifting to other communities.
But even when such conditions exist they are frequently accompanied
by new types of skills required by “mass mining” and changes in
equipment. Thus miners with other skills and experiences are fre
quently left stranded even when the industry is expanding in new
fields.
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Social Security
GENERAL MOTORS WAGE-LOAN PLAN
THE General Motors Corporation recently announced the estab
lishment of an employee benefit plan to be effective January 1, 1939,
which will embrace about 150,000 employees.1 The purpose of the
plan, as announced by the president of the company, is “to provide
greater income security for a broad coverage of our employees.”
There is no intention of a guaranteed annual wage. The plan is
designed to provide loans to eligible employees during periods of
enforced idleness caused by seasonal and general business depressions.
Whenever an eligible employee’s weekly income falls below a certain
proportion of a full week’s pay, the corporation offers to lend him
the difference without interest. The loan is canceled in the event
of the employee’s death. When the employee’s weekly earnings
exceed 60 percent of standard one-half the amount by which such
earnings exceed 60 percent is to be deducted from his wages to repay
the loan.
Section I of the company’s announcement states that the plans are
effective for the calendar year 1939, and “it is the intention of the
corporation to extend them from year to year, subject to such changes
and modifications as may be required by experience and the circum
stances then prevailing.”
The other provisions of the plan are set forth as follows:
II.
Employees with 5 years’ service or more on January 1, 1939, and who
worked any time during December 1938, will be e lig ib le fa) If, in any week while this plan is operative, an eligible employee’s earnings
from the corporation and/or other regular employment are less than 60 percent
of his standard weekly earnings, as hereinafter defined, the corporation will
advance, at the option of the employee, the difference between his actual earnings
and 60 percent of his standard weekly earnings, less any unemployment compen
sation to which the employee may be entitled. Thus, for the entire year the
eligible employee is assured that in each week his minimum weekly income will
be at least 60 percent of the standard.
(6) Advances are to be repaid without interest by the employee, but only
through an opportunity to work. Whenever the employee’s subsequent weekly
earnings are in excess of 60 percent of the standard, one-half of the excess shall
be applied to the reduction of such advances, until same have been repaid.
(c)
In the event of the death of an employee, any amount due as a result of
such advances, shall be canceled.
1 General Motors Corporation.
66
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1939 Employee Benefit Plans.
New York, 1938.
S o c ia l S e c u r ity
67
III. An employee not qualified under section II but who on January 1, 1939,
had 2 years’ service or more and is employed at any time during December 1938
or the year 1939, will be eligible.
(a) A credit will be established for each such eligible employee, equivalent to
72 hours’ pay at his latest earned hourly rate.
(b) If, in any week while this plan is in operation, an eligible employee’s weekly
earnings from the corporation and/or other regular employment, are less than
40 percent of his standard weekly earnings, the corporation will advance to such
employee, at the option of the employee, the difference between his actual earnings
and 40 percent of his standard weekly earnings, until he has exhausted the credit
established in his behalf—less the amount of unemployment compensation to
which the employee may be entitled, for that week.
(c) Advances are to be repaid without interest by the employee, but only
through an opportunity to work. Whenever the employee’s subsequent weekly
earnings are in excess of 60 percent of the standard, one-half of the excess shall
be applied to the reduction of such advances, until same have been repaid.
(d) In the event of the death of an employee, any amount due as a result of
such advances shall be canceled.
IV. Conditions governing the operation o f the plans.— (a) The corporation’s
standard working week is 40 hours, with time and a half for overtime.
(b) The standard weekly earnings of an eligible employee are defined as 40
hours’ pay at his latest average earned hourly rate.
(c) Advances will be granted upon written application on forms to be provided
by the corporation.
(d) The benefits of the plan are granted exclusively to the employees of the
corporation and wholly owned subsidiaries in the United States, and are not
assignable.
(e) No employee will be granted an advance who has voluntarily quit or has
been discharged for cause; or for any week in which he is absent from work for
personal reasons, or because of disciplinary lay-off; or for any week in which he
refuses to accept employment offered to him, if he is capable of performing the
work; or for any week in which he is idle as a result of a labor dispute in the plant
in which he works.
(/) In the event of fire, floods, wars, riots, strikes, or other circumstances
beyond the control of the management of the corporation, which cause corporation
employees to be idle, or in case of a change through legislation, or otherwise, in
the standard work week as above set forth, the corporation reserves the right to
suspend in whole or in part or by plants, the granting of advances under these
plans.
ALMSHOUSES IN MISSOURI
RURAL almshouses in Missouri were found, in a recent study, to be
too small for efficient operation, inadequately equipped, ill adapted to
care for all the types of cases they receive, and likely to be managed
by unqualified and incompetent personnel. The study, covering 96
institutions, was made by the Department of Rural Sociology of the
University of Missouri in cooperation with the W. P. A.1
The almshouse population was found to include able-bodied in
digents, aged, mentally and physically incompetent, and a few children.
Children had, however, for the most part, been removed and were
1 Southwestern Social Science Quarterly (Norman, Okla.),
Missouri Almshouses, by T. C. Piblblad.
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September 1938, pp. 201-210: A Study of
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M o n th l y L a b o r R e v ie w — J a n u a r y 1 9 3 9
being cared for elsewhere. From the fact that a very large propor
tion of all the inmates had been there for short periods only, the in
vestigators concluded that these institutions “are largely a temporary
refuge.” However, somewhat less than half were 70 years of age or
older—the age of eligibility for old-age assistance in Missouri—and
46 percent of these were in such physical or mental condition as to
require institutional care. It appeared, therefore, that only 735 in
mates, or about one-fourth of all the inmates, were potentially eligible
and could be discharged to receive pension. It was further pointed
out that it was doubtful if all of these could meet the other qualifica
tions or could make the necessary adjustment to new surroundings if
they received the pension.
Also, considering that the average old-age allowance in Missouri is
less than $15 per month, the report reaches the conclusion that it
seems rather doubtful that the county almshouses are likely to be
emptied by the old-age assistance program. Were the almshouses to
be relieved of the mental cases and the able-bodied aged cared for
under old-age assistance, then these county institutions could be
transformed into “infirmaries” primarily for the care of chronically ill.
If such plans are adopted the number of inmates per institution will be decreased
beyond their already low level. Some counties will find their almshouses prac
tically empty. (Two have been closed during the past 6 months.) Under such
conditions it should be less difficult to persuade counties to cooperate in the
erection and support of district institutions serving a number of counties. Such
a plan is already in operation in two or three States, and Missouri already has
legislation which would make possible its adoption here. Perhaps the eventually
logical step will be the complete assumption of responsibility by the State and
the creation of State institutions, distributed on a regional basis, for the care
of the residually dependent who cannot be cared for through the other State
programs.
Characteristics of Almshouse Population
The average number of inmates in the 96 almshouses studied in
1936, was 29.3 and almost 80 percent of these institutions contained
fewer than 45 persons each. The 3 institutions that were caring for
more than 75 each, together had 10 percent of the total almshouse
population of the State.
The average age of the inmates was 65.2 years; 47 percent were
between 65 and 80 years. Although no data were given in the report
as to the total almshouse population, it appears to have been about
2,900. Of this number only 23 persons were below the age of 16—or
less than 1 percent, as compared with the 3 percent under 10 and 5.5
percent under 20 found in a recent study in Tennessee.2 This smaller
proportion in Missouri was attributed to the fact that “the mainte
nance of children in these institutions has been almost entirely dis
continued,” the children found in them being in residence only tem» See M onthly Labor R eview, September 1938 (p. 518),
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porarily or to keep them with their mothers. In Tennessee, on the
other hand, the children were in the almshouses because there were
no other institutions for their care.
As in Tennessee, so also in Missouri the Negroes were found to be
discriminated against in admission to the almshouses.
The adults “came from the poorest paid lines of work, as well as
those requiring the least skill.”
It was found that 38.9 percent of all the inmates were mentally
incompetent (35.3 percent in Tennessee). Including those with serious
physical defects, “two-thirds of the Missouri almshouse population
are physically or mentally incapacitated.”
OLD-AGE PENSIONS AND ANNUITIES IN CANADA
BY THE end of March 31, 1938, all of the Canadian Provinces were
participating in the Dominion system of old-age pensions. On that
date 175,673 aged persons were receiving assistance in the 10 Provinces
and more than $38,000,000 was spent for their care during the fiscal
year. Of this sum 28% millions—75 percent—was contributed by the
Dominion Government.
Pensions are payable only to British subjects 70 years of age or over
who have resided in Canada for 20 years and are not in receipt of
annual income of as much as $365. The maximum pension payable
is $240 per year. In cases of pensioners with private income, the
pension allowance is subject to reduction by whatever amount their
private income exceeds $125 per year.
Statistics of operation for the fiscal year ending March 31, 1938,
taken from the Canadian Labor Gazette for June 1938, are shown in
table 1.
T able 1.—Old-Age Pensions in Canada, Year Ended March 31, 1938
Province, and year law was adopted
All Provinces........ .............—
Alberta (1929)-------- ----------British Columbia (1927)-----Manitoba (1928)----------------New Brunswick (1936)...........
Nova Scotia (1934)..................
Ontario (1929)-------------------Prince Edward Island (1933)
Quebec (1936)........... .............. .
Saskatchewan (1928)..-.........
Northwest Territories (1929).
Number Dominion
Govern
of pen
ment con
sioners.
Mar. 31, tributions,
1937-38 i
1938
Percent pensioners
form of—
Average
monthly
pension
Total
popula
tion 2
175,673 $28,524, 587
9,726
11, 563
11, 800
11,142
13,827
57, 530
1,811
46,490
11,775
9
1,560, 571
1,955,951
1,997,108
1,333,673
1,836, 704
9,527,469
167,330
3 8, 386, 231
1, 757,835
1,715
$18. 30
19.18
18. 66
13. 68
14. 64
18.43
10. 63
17.84
16. 45
19.20
1 75 percent of total is contributed by Dominion Government.
2 Percentages based on estimated population June 1, 1937.
a Includes payments from Aug. 1,1936, for certain pensions granted in 1937-38.
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Percent
all per
sons over
Popula 70 form
tion over of total
70 years popula
tion
of age
1.25
1.54
1.65
2. 53
2. 55
1.55
1.95
1. 48
1. 25
.09
52. 83
42. 55
52. 70
59. 61
50. 66
35.16
31.07
48. 37
53.35
7. 44
2. 37
3. 62
3.12
4.25
5. 04
4.41
6. 27
3.07
2. 35
1.21
70
M o n th l y L a b o r R e v ie w —January
1939
Government Annuities
Since 1908 Canada has had a system whereby annuities may be
purchased from the Government. This system was created in order
to encourage thrift and voluntary provision for old age.
The smallest annuity that may be purchased on the life of one
person or on the lives of two persons jointly is $10 a year. The
largest is $1,200 a year. The contract may provide for either an
immediate or a deferred annuity. The latter type is intended for
younger persons desiring to provide for their later years, and may be
purchased either by lump-sum or periodic payments.
Since the plan was started 36,899 contracts have been issued; of
these, however, 3,214 had been canceled after issuance, leaving 33,685
in force on March 31, 1937. Table 2, from the annual report of the
Canadian Department of Labor for the year ending March 31, 1938,
gives, by years, the number of policies and the amount paid in
premiums.
T a b l e 2 . —Development of Canadian System of Government Annuities 1908-09 to 1936-37
Year ending Mar. 31—
1909__________________
1910_________________
1911________________
1912_______________
1913_________________
1914_________________
1915__________________
1916_______________ ._
1917__________________
1918____________ . . .
1919__________________
1920__________________
1921__________________
1922__________________
1923_____ ___________
1924____ _____ ____ _
Number
of con
tracts
issued
66
566
1,069
1,032
373
318
264
325
285
187
147
204
195
277
339
409
Amount of
premiums
$50, 391
434,491
393,441
441,601
417,136
390,887
314,765
441,696
432, 272
332,792
322,154
408,719
531,800
748,160
1,028,353
1,458,819
Year ending Mar. 31—
1925___________ ______
1926_________________
1927...................................
1928__________________
1929_________________
1930_____ ____________
1931__________________
1932___________ ______
1933..................................
1934__________________
1935_____ ____________
1936__________________
1937____ ______ _____ _
T otal................ .
N um ber
of con
tracts
issued
Amount of
premiums
486
668
503
1,223
1,328
1, 257
1,772
1,726
1,375
2,412
3, 930
6,357
7,806
$1, 606,822
1,938, 921
1,894,885
3,843,088
4,272,419
3,156,475
3, 612,234
4,194,384
3,547,345
7,071,439
13,376,400
21,281,981
23, 614,824
1 36,899
101, 558,695
1 Includes 3,214 contracts issued but later canceled.
Tax Exemption of Contributions to Pension Funds 1
The annuities act makes specific provision allowing employers, in
agreement with their employees, to contract for annuities for their
workers domiciled in Canada.
In order to encourage employers to purchase such annuities and
also to “encourage the present tendency in industry to create pension
funds for employées,’’ the Canadian Parliament in 1938 amended
the Income War Tax Act. Under the amendment employers are
allowed credit, in their income-tax returns, for lump-sum contribu
tions to employees’ pension funds, such deductions to be spread forward
over a 10-year period. The contributions on which tax exemption
1 Data are from Canadian Labor Gazette, June and November 1938.
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is claimed must be “in respect of past services and must be charged
irrevocably to the employees’ credit.”
Similar exemption had previously been allowed on employees’
contributions, in an amount not exceeding $300 yearly, and on
employers’ contributions based on current pay rolls. Fifteen firms,
with 1,961 participating employees, are reported in the Canadian
Labor Gazette for November 1938, as having purchased annuities,
under the Government plan, for their employees since the 1938
amendment was passed.
VOLUNTARY CONTRIBUTORY HEALTH INSURANCE
IN ONTARIO1
IN RECENT years considerable interest has been expressed by various
Canadian groups in the possibility of solving the social problem of
medical care by some form of government health insurance. The
Canadian Manufacturers’ Association, the Canadian Trades and
Labor Congress, and the Committee on Economics of the Canadian
Medical Association are all on record as favoring health-insurance
legislation. A law enacted by the Dominion Government in 1935
provided for unemployment insurance and included certain healthinsurance features, but this law was invalidated by the Supreme Court
of Canada and the Judicial Committee of the British Privy Council.
As a result of this invalidation government health insurance in Canada
must be considered as a Provincial responsibility. Only one Prov
ince—British Columbia—has a health-insurance law on the statutes;
this law, which was enacted in 1936, has not as yet been put in
operation.
It was decided by the various groups interested in promoting pre
ventive and other medical services in Ontario that the most logical
method of approach was through cooperation by all parties concerned
and interested and that the motive should be service without profit.
A nonprofit organization called “Associated Medical Services, Inc.”
was accordingly formed and a charter was granted by the Ontario
Government during the first half of 1937. The announced purposes
of the organization were to provide any or all services required in the
prevention, diagnosis, or treatment of illness, to establish and admin
ister reserves, to encourage medical research and preventive medicine,
and to cooperate with organized medicine in advancing the standard
of medical service.
Three elements are embodied in the cooperative project in question:
(1) The corporation; (2) the participating physicians; and (3) the
subscribers or consumers. The corporation itself is a nonshare-holding
i Data are from report by Herbert G. Hengstler, American consul general, Toronto, October 12,1938; and
Industrial Canada, December 1937: Industry, Health and Medical Economics, by J. A. Hannah, M . P .
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body composed of both physicians and laymen. Its charter provides,
however, that the medical men shall always constitute a numerical
majority. The board of directors is the controlling agency and has
at the present time seven members (four physicians and three laymen)
elected by the corporative body. The lay membership of the corpor
ation includes business and professional men interested in the problem
of medical care. New members are admitted, as in a club, on the
recommendation of two members of the board of directors.
Participating physicians are those qualified medical practitioners
who agree to perform services in home, office, or hospital for sub
scribers to the facilities of the corporation. Bills for such services
rendered are sent directly to the corporation, all fees being based on
the minimum schedule established by the Ontario Medical Association.
In short, the participating physician treats a subscriber just as he does
any private patient, except that the corporation rather than the
patient pays the bill.
Subscribers are free to choose a physician from among those par
ticipating in the plan but must state upon their application the name
of the physician chosen, and the corporation is liable only for services
rendered by him. The subscriber is allowed, however, to change
physicians after due notice to the corporation.
The benefits include all necessary medical and surgical attention,
obstetrical care if both the husband and wife have been subscribers
for at least 10 months, X-rays, anesthetics and operating room, hos
pitalization not to exceed a cost of $3.50 per day, and such nursing as is
considered necessary by the branch medical officer.
The fees amount to $2 per month for subscribers, $1.75 per month
for the first dependent, $1.50 for the second, $1.25 for the third, and
$1 for the fourth and each additional dependent. Wives or husbands
of subscribers are considered to be dependents, as are also children or
wards under the age of 21 years if their income does not exceed $7
per week. Children or legal wards above the age of 21 years are con
sidered dependents if attending an educational institution and wholly
dependent upon the subscriber for support. Other relatives who are
wholly or mainly dependent upon the subscriber may also be covered
by the insurance.
Payments from subscribers are divided into two accounts—the
medical reserve out of which the bills of the participating physicians
are paid, and the administrative account for payments to salaried
officers, clerical help, and for office equipment. Administrative over
head is estimated at 15 percent of total income. According to the
chief medical officer, the corporation has paid all its medical and
administrative accounts and has a more than adequate working sur
plus. It is the intention of the organization, he stated, to operate on a
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S o c ia l S e c u r ity
pay-as-you-go basis, for only in that way can the purpose of the
project—that is, skilled medical care for the great mass of persons
in the low- and middle-income brackets with adequate compensation
for physicians—be achieved.
The Associated Medical Services has opened branch offices in
Ottawa, Woodstock, and Simcoe; such offices are established only at
the request of the appropriate county medical association. According
to the chief medical officer, pressure from the medical profession
to set up branches in more than a dozen Ontario centers is very
strong, but it is felt that expansion should be slow, in order that
excessive administrative overhead and lack of experience shall not
jeopardize the whole experiment. Branch offices are supervised by
local boards consisting of one layman and two physicians; accounting,
however, is centralized in Toronto. There are at the present time
more than 3,000 subscribers. Of the approximately 4,500 qualified
medical practitioners in Ontario, 900 are already participating in the
project. Sevjn hundred of Toronto’s 850 physicians are cooperating,
as is a similarly large proportion of the doctors in Ottawa, Simcoe,
and Woodstock.
The underlying theory of the Associated Medical Services, Inc., is
that the medical profession, industry, labor, and government all share
the responsibility for the problem of medical care, and that around
such a nucleus as the service presents, a balanced program to that end
may be achieved. It is the opinion of the chief medical officer that
the organization can solve the social problem of medical care without
diminishing the quality of the service rendered or destroying the per
sonal relationship between patient and physician, while at the same
time recognizing the right of the medical profession to adequate
compensation.
COMPULSORY UNEMPLOYMENT INSURANCE IN
NORWAY
A COMPULSORY system of unemployment insurance in Norway,
established by a law of June 24, 1938, will replace the voluntary sys
tem subsidized by the Government which had been in effect since 1906.
The former system was under the control of the individual tradeunions and covered a comparatively small percentage of the workers
in the country. It is estimated the new system will cover about
630,000 persons. The Government will fix the date on which the
system will become effective; it is expected to go into operation on
either January 1 or July 1, 1939.1
i Data are from translation of law forwarded by Florence J. Harripian, American Minister to
under date of October 31, 1938.
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M o n th l y L a b o r R e v ie w — J a n u a r y 1 9 3 9
Coverage
Insurance against unemployment is, in general, compulsory for all
persons subject to compulsory sickness insurance, i. e., all persons
15 years of age or over in public or private employment who receive
wages or remuneration consisting wholly or partly of cash and whose
income does not exceed a specified amount (at present, 6,000 kroner
per year). Those excluded from the sickness-insurance system, and
therefore from insurance against unemployment, include independent
workers, casual workers and persons employed only temporarily or
incidentally, and persons earning less than 600 kroner per year. Agri
cultural, forestry, and lumber workers, and those employed in the
shipping industry and in fishing and whaling are specifically exempted,
as are also home workers, and domestic servants employed in private
homes, institutions and nursing homes, or inns or restaurants not
licensed as hotels. Persons in public or semipublic service whose
employment is on a permanent basis are not covered, since they are
not regarded as being subject to the hazard of unemployment.
Contributions
For the purpose of fixing the contributions, employees are divided
into seven wage classes. The first two classes include Government
employees and workers earning less than 600 kroner per year (class 0
and class 1), who are not included in the system. The combined
contributions of employer and employee, for classes 2 to 6, are 0.36,
0.52, 0.70, 0.90, and 1.00 krone per week. The contributions will be
paid by the employers to the sickness-insurance societies, which will
transmit them to the unemployment funds to be established in differ
ent localities. One-half of the total contribution is deducted by the
employer from the wages of the insured person. A half-yearly subsidy
equal to one-fourth of the contributions will be paid to the fund
by the local authorities. For a 3-year period after the act becomes
effective the State will pay the subsidy due from the local authori
ties, but the total amount may be distributed over a period of 6
years. State subsidies after the 3-year period will be paid only when
the expenditures of a local unemployment fund exceed the revenues
of the fund for the previous year from the contributions and the com
munal subsidy. The local funds will be required to pay 10 percent
of their revenue to the national reserve fund, and if the resources of a
local fund exceed certain limits the fund may be required to remit all
or part of the excess to the national fund. The national reserve fund
will assist local funds which cannot meet the demands upon them,
and if the reserve fund becomes exhausted the State will be responsible
for the whole of the excess expenditure.
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Benefits
The benefits include a daily cash benefit, traveling and removal pay
ments, and the payment of sickness contributions during unemploy
ment; or, in lieu of the cash benefit, a grant may be made toward
vocational training. The daily cash benefit varies according to the
different wage classes and ranges from 1.40 kroner to 4 kroner. In
addition, a benefit of 0.30 la-one per day is granted for each child
under 15 years up to a maximum of 1.50 kroner. The total cash
benefit may not exceed 80 percent of the daily wage which determines
the allocation of the worker to his wage class. Traveling and removal
expenses for persons who secure work in another locality may not
exceed the daily benefit for 4 weeks, including the children’s benefit.
The Government, on the recommendation of the Unemployment
Board, may increase the contribution or reduce the benefit for trades
with special risks of unemployment.
In order to be eligible for benefit an unemployed person must be
capable of work, not unemployed through his own fault, and have
registered as seeking work in the local employment exchange. The
initial qualification for benefit is 45 weeks of insurable employment
within the 4 years immediately preceding the claim for benefit.
Benefit is payable for not more than 15 weeks in a 12-montli period,
but may not be paid for more than one-third of the number of weeks
for which contributions were paid in the year preceding the claim,
plus one-third of the number of weeks for which contributions were
paid in the preceding 3 years, less the number of weeks of benefit
received in the last 4 years. After the maximum benefit has been
paid to an unemployed person, a new qualifying period is required,
of not less than 15 weeks’ insurable employment within the period of
2 years immediately preceding the new claim for unemployment bene
fit. The waiting period before benefit is payable is 6 days, exclusive
of Sundays. The continuity of unemployment is not interrupted by
periods of temporary employment which do not last more than 12
days, but in any 1 week the benefit plus the earnings from such em
ployment may not exceed 1% times the benefit that would have been
payable for full unemployment. The same limitation is applied in
granting benefit to persons employed on part-time work.
Benefits will not be paid to insured persons who take part in a
strike or who are directly or indirectly affected by a lock-out or other
labor dispute, nor to persons who refuse to accept suitable work or
whose unemployment is the result of misconduct. Also persons who
are receiving a pension, or wages or arrears of wages, or who are
called for military service, are not entitled to benefit. In the case of
foreigners working in a frontier district but not resident in Norway,
a reciprocal agreement may be concluded by the Government with
the country of origin of such workers.
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Supplementary Insurance
The law provides that, for the payment of benefits beyond the
maximum periods, organized groups of insured persons may establish
supplementary unemployment-insurance funds. Such funds, in order
to secure official approval, must provide that at least one-half the re
sources of the fund are derived from the contributions of members,
and that benefits shall not be payable until after membership of 6
months and the payment of 26 weekly contributions or until the ex
piration of the right to benefit under the compulsory system. The
maximum benefit period of supplementary funds is 15 weeks in a
12-month period. Also, grant of supplementary benefit must be sub
ject to the general regulations governing the granting of regular benefit
and the rates of benefit may not exceed the regular benefit. The un
employment funds existing under the former voluntary system may
continue to operate as supplementary funds. The State subsidy to
approved supplementary funds will amount to one-half of the amount
of the supplementary benefits.
Administration
A National Unemployment Board under the control of the De
partment of Social Welfare will administer the act. It will be assisted
by local unemployment committees, on which employers and em
ployees have equal representation, which will be set up in each local
government area. The National Board, appointed by the Crown,
will consist of five members and alternates, including representatives
of the employers and of the workers, nominated by their principal
organizations. In addition to the regular administrative measures,
the duties of the National Board and the local unemployment com
mittees will be to study the state of the labor market, endeavor to
improve working conditions, investigate the causes and extent of
unemployment, and institute measures for preventing or reducing
unemployment.
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S o c ia l S e c u r it y
BRITISH HEALTH-INSURANCE SYSTEM
NATIONAL health insurance and contributory pensions are
now closely associated in Great Britain. In 1937 the existing
health-insurance scheme celebrated the twenty-fifth anniversary of
its establishment. Contributory pensions were introduced in 1925,
having from the outset been interlocked with the health-insurance
scheme. Consideration is here given to the first of these schemes,
i. e., to national health insurance.1
In the first quarter century of its existence, the British national
health-insurance scheme increased its membership from 11,500,000 to
about 17,500,000. At the same time the total population increased
about 4,750,000. The total benefits paid out in this period under the
scheme were as follows:
Total benefits
Sickness benefits---------------------------------------- r ____ £202, 000, 000
Disablement benefits____________________________
94, 000, 000
Maternity benefits________________________ ! ____
35, 000, 000
Medical benefits________________________________
194, 000, 000
Dental and ophthalmic treatment, medical and surgi
cal appliances, convalescent treatment, etc______
40, 000, 000
Establishment of the System
Toward the end of the nineteenth and the beginning of the twentieth
centuries there had grown up a number of “clubs,” medical-aid
societies, friendly societies, and trade-unions, which provided their
members with “contract” medical services in various forms. There
had been a long struggle between these bodies and the British Medical
Association, traceable to the latter’s desire to secure adequate re
muneration for the doctors who rendered “contract” medical services.
In 1909, the minority report of a Royal Commission on the Poor
Law advocated the creation by the local health authorities of a
comprehensive public health service. Partly as a result of these
recommendations, proposals had appeared from time to time for the
establishment of a public health service of this kind. The decision
to establish a national scheme of health insurance on a contributory
basis was taken in 1911 by the Liberal Government then in power.
The inspiration for the decision is attributed to Lloyd George.
The act of 1911 provided that manual workers between the ages of
16 and 70 and nonmanual workers earning less than £160 a year were
subject to compulsory health insurance. The law also provided for
1 Report by Harry E. Carlson, American consul, London, September 3, 1938.
This article is one of a series on sickness-insurance systems in foreign countries. Other articles were
published in the following issues of the M onthly Labor Review: December 1937 (Netherlands); January
1938 (Poland); February 1938 (Denmark); March 1938 (France); M ay 1938 (Norway); and August 1938
(TJ. S. S. R .).
1 15 6 52 — 39---- - 6
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voluntary membership by persons having annual incomes of less
than £160 from all sources, who were not compulsorily insurable,
and for the continuance of membership on a voluntary basis by those
persons who had dropped out of the national health-insurance scheme
by ceasing to be insurably employed.
The act of 1911 placed the British national health-insurance
scheme on a compulsory and contributory basis, with the workers,
the employers, and the State sharing the costs. This feature has
since been adhered to consistently. The system was placed under
the general control of the State, but supervision has been taken over
by central departments concerned with health in England and Wales,
Scotland, and Ireland.
When the act of 1911 was passed, the friendly societies, the tradeunions, and some of the medical-aid societies were brought into the
national health-insurance scheme as insurance carriers.2 Provision
was also made in the act by which industrial assurance companies
were enabled to form non-profit-making sections for the purpose of
carrying on national health insurance.
These two groups of insurance carriers became known as “approved
societies,” and encouragement to join these societies was given to all
insured persons, but provision was made, at the same time, for those
who did not join the approved societies. Insured persons who are
not members of such a society are called “deposit contributors,” and
contributions by or for them are credited to a special fund.
Great Britain’s original National Health Insurance Act of 1911 has
been subject to frequent revision; the number of persons covered by
the scheme has been enlarged from time to time, and the rates of
benefit have been modified.
Legislation
The following comparatively recent legislative acts have made
certain amendments in the laws governing national health insurance:
National Health Insurance Act, 1924.
Widows’, Orphans’, and Old-Age Contributory Pensions Act, 1925.
National Health Insurance Act, 1928.
Widows’, Orphans’, and Old-Age Contributory Pensions Acts, 1929 and 1931.
National Health Insurance and Contributory Pensions Acts, 1932 and 1935.
National Health Insurance Act, 1936.
National Health Insurance Act (Amendment) Act, 1937.
National Health Insurance (Juvenile Contributors and Young Persons) Act,
1937.
The National Health Insurance Act, 1924, changed the previous
legislation on this subject so as to make it affect almost the entire
wage-earning population of Great Britain. The compulsory pro1 These organizations had become so firmly entrenched in this kind of insurance that it was considered
neither possible nor desirable to ignore them. Their membership included one-third of the persons who
were eventually brought into the national health-insurance system.
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visions of the act related to nonmanual workers earning less than
£250 a year, and to all manual workers without regard to the amount
of their earnings. Under the heading of voluntary insurance were
included those persons who had been compulsorily insured for 2 years
or more, and who desired to retain the insurance on a voluntary
basis.
The interlocking of the system of widows', orphans', and old-age
contributory pensions with the system of national health insurance
already in existence was brought about by the Widows', Orphans’, and
Old-Age Contributory Pensions Act, 1925.
The National Health Insurance Act, 1928, introduced more
important changes; thus, permanent provisions were made for
unemployed persons, and the free period of insurance was extended.
Legislative effect was also given by this act to many of the recom
mendations of the Koyal Commission which reported in 1926 upon
the national health-insurance scheme.
The opportunity for persons to become insured as voluntary con
tributors was broadened by the Contributory Pensions Act, 1929.
The Widows’, Orphans’, and Old-Age Contributory Pensions Act,
1929, was amended in 1931 so as to define the term “normal occupa
tion,” and to entitle to widows’ pensions the widows of men who
attained the age of 70 on or before July 15, 1912, and who died on or
after January 4, 1926, and whose normal occupation was of a certain
kind, at some time within 3 years before the date on which they at
tained said age.
The National Health Insurance and Contributory Pensions Act,
1932, gave certain privileges to unemployed persons; it also varied
the rates of benefits payable to women. The act of 1932 also withdrew
certain privileges which had been granted temporarily to unemployed
persons; it permitted only one-half of their arrears due to unemploy
ment to be excused; the right to sickness, disablement, and maternity
benefits was withdrawn after a period of approximately 2% years’
unemployment; finally, the termination date of the period during
which unemployed persons could remain insured was set as Decem
ber 31, 1935.
In the act of 1935, the full excusal of arrears was restored. This
act also provided that persons who had been employed for 10 years
could, on becoming unemployed, remain insured as long as they con
tinued to prove unemployment.
All of the national health-insurance legislation was consolidated in
the National Health Insurance Act, 1936. This is the law which is
in force at the present time. The measure contains no amending
provisions, but in it the various sections are arranged on a more con
venient basis.
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A National Health Amendment Act, passed in 1937, amended the
descriptions of the persons with whom arrangements may be made
under the National Health Insurance Act, 1936, for the dispensing of
medicines.
In 1937 there was a further development in respect to the British
national health-insurance service. An act passed in that year brought
working boys and girls between the ages of 14 and 16 under insurance
for medical benefit, thereby “bridging the gap between the school
medical service and the main insurance arrangements.” This act,
which is called the “National Health Insurance (Juvenile Contributors
and Young Persons) Act, 1937,” provides medical benefit for boys
and girls who, between school-leaving age and 16 years, are employed
within the meaning of the National Health Insurance Acts. Medical
benefits, the number of beneficiaries of which at the outset was es
timated at about 1,000,000, became available to juvenile contributors
as of April 4, 1938.
Coverage
In general, all persons between the ages of 16 and 65 years, who are
employed within the meaning of the national health-insurance acts
and who do not hold certificates of exemption, are required to be
insured for both health insurance and contributory pensions.
The National Health Insurance Act, 1936, makes provision, how
ever, for four separate and distinct groups of persons:
1. Those who are compulsorily brought within the scope of the act, called
“ employed contributors.”
2. Those who are definitely excluded from the provisions of the act by reason
of the employment’s being an “ excepted employment.”
3. Those who are normally inside the act, but who may, under certain con
ditions, remain outside it, called “ exempt persons.”
4. Those who are normally outside the act, but who may, under certain cir
cumstances, come under it, called “ voluntary contributors.”
EMPLOYED CONTRIBUTORS
The first of these groups, known as “employed contributors,” is
composed of those persons who are compulsorily brought under the
National Health Insurance Act, 1936; this class includes all persons
between the ages of 16 and 65 who are employed in Great Britain and
who are employed—
1. In an occupation of a nonmanual nature at a rate of remuneration not more
than £250 per annum.
2. In an occupation of a manual nature irrespective of the rate.
3. As an apprentice and receiving money payment.
4. In manual labor under a contract for the performance of such labor unless
excluded by special order.
5. On any fishing or other vessel and remunerated by a share in the profits or
gross earnings of the vessels unless excluded by special order.
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The provisions of the act of 1936 which pertain to “employed con
tributors” are applicable to men and women (including married
women); they apply not only to British subjects but to aliens as well.
This group includes almost all persons who work under the direction
of an employer, irrespective of industry or occupation, except the
more highly-paid nonmanual workers, but it does not cover such
classes as independent contractors, ministers of religion, and pro
fessional men in general.
Whenever a question arises as to whether any occupation is of a
manual or nonmanual character, such question is one for determina
tion by the Minister of Health.
EXCEPTED PERSONS
There are various exceptions with respect to persons who would
otherwise be liable to insurance as “employed contributors.” Thus,
certain persons who, in accordance with the principles previously
mentioned, may be liable to be compulsorily insured, are specifically
excepted from the provisions of the act if they come within any of the
following classes, and no health-insurance contributions are payable
by them or by their employers.
1.
2.
3.
who
4.
Persons employed as apprentices without money payment.
Persons employed on an agricultural holding without money payment.
Persons employed by their parents without money payment and persons
are fully maintained by their employer without money payment.
Wives employed by their husbands and husbands employed by their wives.
EXEMPT PERSONS
In the class of exempt persons are included persons who
mally liable to compulsory insurance, but who, for specific
may, if they so desire, make application to remain outside
A person wishing to claim exemption must produce proof
that—
are nor
reasons,
the act.
showing
1. He is in receipt of a pension or income of an annual value of £26 or
upwards not dependent on his personal exertions; or
2. He is ordinarily and mainly dependent for his livelihood on some other per
son; or
3. He is ordinarily and mainly dependent for his livelihood on the earnings
derived by him from an occupation which is not employment within the meaning
of the act; or
4. He has not been employed within the meaning of the act for the prescribed
number of weeks during any prescribed period.
The mere fact of belonging to one of the above groups does not of
itself exempt a person from contribution payments due under the act.
The individual must himself make application for and obtain a certif
icate of exemption from the Minister of Health.
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VOLUNTARY CONTRIBUTORS
Only a very restricted class may now obtain voluntary national
health insurance. Voluntary insurance under the combined health
insurance and pensions scheme is, in general, limited to Great Britain,
Northern Ireland, and the Isle of Man, but persons who go abroad for
a temporary period may, if duly qualified, continue in insurance as
voluntary contributors under the combined scheme. It is not possible
to contribute for health insurance except in the special case provided
for under the recently enacted Widows’, Orphans’ and Old-Age Con
tributory Pensions (Voluntary Contributors) Act, 1937.
The purpose of the voluntary insurance is to make it possible for
persons ceasing to be compulsorily insured to continue the insurance
should they wish to do so. A person who desires to continue insur
ance as a voluntary contributor must complete and present an appli
cation to this effect. Persons accepted as “voluntary contributors”
under the 1936 act include those who (a) having been employed
within the meaning of this act and insured as employed contributors
for a period, whether continuous or not, of 104 weeks or upwards,
have ceased to be so employed; (b ) having become insured as employed
contributors while insured as voluntary contributors, have ceased to
be employed within the meaning of this act; and (c) being male per
sons in respect of whom not less than 104 contributions have been
paid, have ceased to be employed within the meaning of this act.
A married woman cannot become a voluntary contributor under
any circumstances under the National Health Insurance Act of 1936;
she may, however, be eligible as a voluntary contributor for pension
purposes under the 1937 Pensions Act.
PERSONS CEASING TO BE INSURED
The existing health-insurance legislation in Great Britian contains
a number of provisions relating to tlie'insurance rights of persons who
cease to be insured. Under these provisions a person relinquishing
insurable employment continues to remain insured until June 30 or
December 31, whichever next precedes the expiration of a period of
2 years from the date of the last insurable employment. This is
known as the “free insurance period.” For voluntary contributors,
insurance continues for a similar period after contributions have
stopped. The average period of free insurance is about 21 months.
The National Health Insurance and Contributory Pensions Act,
1935, provided that an insured person who ceases to be employed is
given a “free insurance period” of between 18 months and 2 years,
during which period he is entitled to all health-insurance benefits.
It also provided that if at the end of this period he proves within the
prescribed time that throughout the period he was (except when
insurably employed) either incapable of work through duly reported
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sickness or was available for but unable to obtain employment, then,
if he has been insured for 10 years up to the date when he ceased work,
his insurance is continued for another year called an “extended insur
ance period.” Thereafter his insurance is kept in force from year to
year as long as unemployment continues and is proved. During this
“extended insurance period” an insured person is not entitled to
sickness and disablement benefit, but can regain title to those benefits
by 26 weeks of insurable employment and the payment of 26 con
tributions over a period of not more than 4 consecutive contribution
half years.
JUVENILE CONTRIBUTORS
The purpose of the “National Health Insurance (Juvenile Contrib
utors and Young Persons) Act, 1937,” was to enable boys and girls
aged 14 to 16 years to be eligible for “medical benefit” when they left
school and entered employment. This measure came into operation
on April 4, 1938.
Type and Amount of Benefits and Benefit Periods
CASH BENEFITS
The British national health-insurance scheme was planned in such
a way as not only to provide medical services but also to give sick
people financial aid during the period of their inability to work.
These cash benefits are said to be the most expensive part of the
British national health-insurance scheme, costing nearly twice as
much as the medical benefits.
The cash benefits fall under four headings: (a) Sickness benefit;
(b ) disablement benefit; (c ) maternity benefit; and (d) “additional”
benefits. These benefits are all administered through the approved
societies.
S i c k n e s s benefit. —Normally, sickness benefit is payable only while
the insured person is resident in Great Britain, Northern Ireland, or
the Isle of Man. Persons temporarily absent elsewhere may con
tinue to receive sickness benefit, if the payments commenced before
the departure from Great Britain or Northern Ireland.
Cash benefits are rigidly controlled by the contribution record of
the insured person. In order to qualify for receipt of sickness bene
fit, a person must have been insured for at least 26 weeks, and 26
contributions must have been paid. After 104 weeks of insurance
have been completed and 104 contributions have been paid, benefits
are payable at a higher rate. The qualifications and rates for sick
ness-benefit payments are as follows: For 26 and under 104 contribu
tions and weeks of insurance, the rate of benefit for men is 9s. per week;
for single women and widows, 7s. 6d.; and for married women, 7s. 6d.
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For 104 weeks of insurance and over, the rate for men is 15s. per week;
for single women and widows, 12s.; and for married women, 10s.
There is a waiting period of three days, after which the benefit
becomes payable and may continue for not to exceed 26 weeks.
Incapacity for work must have been caused by some specific disease
or by bodily or mental disablement.
D is a b l e m e n t b e n e fit .—Disablement benefit is a continuation of
“sickness benefit’’ after the expiration of 26 weeks, but at a reduced
rate. The rate of weekly disablement benefit payable is 7s. 6d. for
men, 6s. for single women and widows, and 5s. for married women.
To qualify for disablement benefit the insured person must (a)
normally be resident in Great Britain, (b ) have paid 104 contribu
tions, and (c) have been insured for 104 weeks. There is no waiting
period, as the disablement benefit commences at once after the
termination of the 26 weeks of sickness benefit and continues until
incapacity ceases or until the insured person reaches the age of 65.
M a t e r n i t y b e n e fit .—Maternity benefit is a payment in the event of
the confinement of an insured woman or the wife of an insured man,
or, in the case of a posthumous child, of the widow.
The benefit consists of the payment of £2 on confinement of the
wife of an insured man, or a similar amount if the woman herself is
an insured person. In the event that both the husband and wife
are insured, £2 is payable in respect to each insurance, or a total of
£4. Moreover, if the woman is an insured person, but her husband
is not, she is entitled to a double maternity benefit of £4. If either
the husband or the wife are insured, but are not qualified or have
been suspended on account of arrears, no benefit is payable.
The qualification for maternity benefit is 42 weeks of insurance
and the payment of 42 weekly contributions.
Table 1 gives a summary of maternity-benefit payments according
to the insurance status of the husband and wife, and to the Society
from which the benefit should be claimed.
T a b l e 1. —Maternity Benefits, by Insurance Status and Society From JFhich Claimed
Benefit payable
by—
Insurance status
Hus
band’s
society
£2
2
Both husband and wife insured and both qualified......................................
Both husband and wife insured; wife not qualified or suspended on account
Wife only insured and qualified 1_____ _____________ __________________
Husband a “deposit contributor,” but amount standing to his credit not
enough to provide £2___________ - - ------ -------------------------------------
Total
benefit
Wife’s
society
£2
£2
4
4
2
4
32
4
2
(2)
1 If the husband only, or the wife only, is insured but not qualified, or is suspended on account of arrears,
no benefits are payable.
2 Dependent upon credit in D . C. fund.
3 Plus the sum needed to make the amount paid out of the D . C. fund ¿2.
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An insured woman is entitled to sickness benefit, subject to the
ordinary conditions, in respect to incapacity due to pregnancy, and
also in respect to incapacity after the fourth week following her con
finement. The total cost of maternity benefit in Great Britain in
1936 was £1,665,000.
A d d i t i o n a l - t r e a t m e n t b e n e f its .—The term “additional benefits” refers
to certain types of benefits paid by the approved societies which
may, or may not, become available to an insured person. Provision
is made for periodical actuarial valuations of the assets and liabilities
of every approved society. If, as a result of such valuation, there is
found to be a surplus, then such surplus may be used for granting
“additional benefits” to insured persons. Since July 1, 1921, most
approved societies have been able to give additional benefits to mem
bers who are qualified to receive them.
In respect to additional payments, an insured person becomes
entitled to “cash” benefits under this heading in January of the fifth
calendar year following the year in which he last became a member of
his approved society, while for treatment the waiting period is until
January in the third year of membership in an approved society.
Additional benefits may take the form either of increases in the
standard rates of cash benefits or of payments toward the cost of
various forms of treatment, such as dental, ophthalmic, or convales
cent-home treatment.
There is considerable variation in the additional treatment benefits
provided by each approved society. The provision of treatment,
services, or appliances is not included in these additional benefits.
The whole or a part of the cost of these services is, however, paid for.
The arrangements for the provision of these benefits are made by the
societies themselves. In actual practice there is a wide diversity in
these arrangements. Members may not claim additional benefits
until after 2 }'2 years’ membership in the society granting them.
The number of approved societies granting additional benefits, the
number of members of such societies, and the amount of money set
aside for this purpose for the year 1937 are shown in table 2.
Each approved society has the right to determine the manner in
which any surplus shall be used for granting additional benefits to
its members. Proposals in this direction must, however, first be
submitted to and be approved by the Minister of Health. Societies
are, furthermore, permitted to provide only types of “additional”
benefits specifically set forth in the National Health Insurance Act.
There are about 10,000 dentists associated with dental benefit.
A considerable number of ophthalmic physicians render services in
connection with ophthalmic benefits, as is also the case with several
thousands of opticians.
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T a b l e 2 . —Number and Membership of Approved Societies Granting Additional Benefits,
and Amount Allocated, 1937
Name of benefit
Number of
approved
societies
Approximate
membership
5,434
5,428
2,866
4,401
2,437
20
52
768
417
652
94
70
699
13.056.000
11.334.000
11.467.000
12.535.000
1.876.000
228,000
432.000
6.215.000
7, 506,000
6, 435,000
3, 875, 000
945.000
Dental—................................... .............. ..... ............. ............. .........
Ophthalmic___ ________________________ _______________
Convalescent-home trea tm en t.................................. .................
Medical and surgical appliances...................................................
Hospitals................................ ................................................. ..........
Convalescent-home premises.................................................... .
Convalescent allowances...................................... ........................
Want or d istr e ss.............................................................................
Approved charitable institutions________________________
N ot separately distinguished_________ ______ ____________
T otal______________ __________ ___________________
Amount allo
cated, 1937
f 2,473, 236
613, 254
216,878
217,035
107,187
21,911
2,350
37,739
34,625
32,317
5,289
6,021
29,782
3,798, 624
MEDICAL BENEFITS
Medical benefit under the National Health Insurance Act, 1936,
may be placed under the three following categories: (1) Treatment
and attendance by qualified doctors; (2) furnishing of adequate drugs
and appliances; and (3) furnishing of medical certificates. Medical
attendance is limited to such as is within the competence of an average
general practitioner and does not include attendance or treatment in
confinement.
There is no waiting period for medical benefit When an insured
person joins an approved society, he at once becomes entitled to
medical benefit. The right to receive medical benefit does not cease
at the age of 65, if the person is still insured on attaining that age.
Insured persons residing in England, Scotland, Wales, Northern
Ireland, or the Isle of Man are entitled to medical benefit. The
insurance committee for the area in which the insured person is residing
makes the arrangements for the medical benefit. For information in
respect to such an arrangement, inquiries are made directly to the
clerk of the insurance company or through the member’s society.
Voluntary contributors with incomes in excess of £250 a year are
not entitled to medical benefit. Also, there is no provision for the
extension of the benefits of the British national health-insurance
scheme to dependents of insured persons.
Freedom of Choice of Physician
Special bodies known as “insurance committees” have been formed
to carry out the administration of medical benefits. Committees of
this kind are in existence in each county and county borough. On
each committee there is a majority representation of the insured
persons resident in the area. There are also representatives of insur
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ance doctors, chemists, and the county or county-borough council on
each committee.
Each insurance committee is required to prepare a “panel” or list
of the doctors and chemists in its area, who are prepared to give treat
ment and to furnish medicines for insured persons at rates of remuner
ation and under conditions agreed upon with the committee.
Any qualified physician may have his name entered on the panel.
To do so, he must send notice to this effect to the clerk of the local
insurance committee. The doctor’s name is then entered on the
panel of practitioners on file at all post offices. This constitutes an
announcement of the doctor’s readiness to receive panel patients.
Insured persons resident in the area of any registered medical
practitioner have free choice among the doctors whose names appear
on the list of panel practitioners for the area. They may likewise
obtain any medicines or appliances prescribed for them from any
chemist taking part in the service.
The insured person is supplied with a medical card by the local
insurance committee. When the insured person desires to have
medical attention he presents this card to the doctor he has chosen.
In the event the insured person is accepted as a patient by the doctor
of his choice, the doctor sends the medical card to the insurance com
mittee. A record card is thereupon furnished the doctor by the
insurance committee, which at the same time returns the medical
card to the insured person.
Under this system qualified doctors may engage in panel practice
if they so desire. Free choice as to the selection of a doctor is afforded
the patient. Moreover, doctors have the right to refuse patients.
Orders issued by the Minister of Health under the National Health
Insurance Acts limit the remuneration which doctors may receive
from panel practice. The doctor’s remuneration is in the form of
a “capitation fee” of 9 shillings per year for each insured person
on his list. Doctors in rural areas also have a mileage allowance,
for use if the patient lives more than 2 miles away from the doctor.
Except in very special circumstances, no doctor may have more than
2,500 insured persons on his list.
In addition to furnishing insured persons with such treatment
and prescriptions as may be necessary, panel doctors are required
to issue medical certificates to insured persons. These certificates
are for submission to the insured person’s approved society in sup
port of sickness- or disablement-benefit claims. Physicians must
also keep a record of the diseases of persons treated by them, in a
prescribed form for use for clinical, administrative, and statistical
purposes. Whenever an insured person avails himself of his right
to change doctors his medical record is passed on to the new doctor.
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Conditions Governing Payment of Benefit
There are certain rules of conduct which insured members must
observe strictly while in receipt of medical or sickness benefits.
These rules, which are printed on the reverse side of the medical
card, are drawn up by the approved societies or the insurance com
mittees. Penalties are prescribed for any breach of these rules.
Under the rules work is prohibited; the patient must be at home
betweeen certain hours; and he must not go away from home with
out the permission of the society or committee. Other provisions
of various kinds are to be found in the rules.
In no case is it possible to withhold benefit from an unmarried
woman who is pregnant, on the ground that misconduct was the
cause of her pregnancy.
Amount or Rate of Contribution
Contributions payable under the national health acts are combined
with those payable under the contributory pensions acts. Contri
butions are payable by the State, the employer, and the employee.
The State contribution toward the cost of the National Health Insur
ance Scheme is in the form of the payment of a definite proportion of
the cost of all benefits and of their administration. This proportion
has, since 1926, been one-seventh in the case of men and one-fifth in
the case of women.
Since 1926, the weekly rate of the health-insurance contribution
has been 9 pence for men and 8% pence for women, of which 4% pence
is in each case payable by the employer. The latter is obliged to pay
the whole contribution in the first instance, but he is allowed to recover
the employee’s share by deduction from wages.
In respect to voluntary contributors the whole contribution is
payable by the insured person himself.
The contribution is paid by affixing a health and pensions insurance
stamp to a contribution card.
The combined health and pensions contribution is Is. 8d. for men,
and Is. 2d. for women, of which the employer pays lOd. for men and
7d. for women.
Health- and pensions-insurance contributions are as follows:
For men, total contributions for health insurance are 9d. and for
pensions lid., the employer and the employee each paying an equal
amount—4%d. and 5}£d., respectively. For women, total contri
butions for health insurance amount to 8}^d. of which the employer
pays 4%d. and the employee 4d., and for pensions the total is 5Kd.,
of which the employer pays 2%d. and the employee 3d.
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S o c ia l S e c u r ity
ARREARS IN CONTRIBUTIONS
During each contribution year at least 50 contributions must be
paid or otherwise contributed by an insured person. Unless this takes
place, the insured person is in arrears, and a penalty must be paid in
the form of reduction or suspension of cash benefits during the succeed
ing benefit year, which is approximately the same as the calendar year.
At the close of each contribution year the approved societies send
notifications to their members of any arrears against them. The in
sured person may, if he so desires, pay the whole or part of his arrears;
his rate of benefit will then be determined according to the extent to
which his arrears have been paid. The period during which an in
sured person can pay his arrears is called the “period of grace,” which
normally ends on November 30 of each year; the rate of cash benefits
payable to the insured person in the benefit year commencing in the
following January is governed by the state of his arrears account.
During any period when the insured person is rendered incapable of
work by specific disease or by bodily or mental disablement, contri
butions are excused. In order to claim benefit, or to prevent arrears
accruing, notice of the incapacity must be given, and evidence in the
form of medical certificates must be furnished to the approved society.
In assessing arrears, credit is allowed for weeks during which the
insured person proves that he was available for but unable to obtain
employment.
Table 3 gives an indication as to the reductions in the weekly rates
of benefits for men, according to the extent of the unpaid arrears.
For women there are corresponding reductions, but these start at a
lower level.
T able
3 . —Reductions in
Weekly Rates of Benefits for Employed and Voluntary
Contributors (Men), According to Extent of Unpaid Arrears
Corresponding reduc
tion in weekly rate of—
Total number of contri
butions credited
Cash bene
fit
s. d.
i0
1 6
3 0
4 6
6 0
50 to 52_________________
48 to 49._______________
46 to 47_________________
42 to 43________________
Disable
ment
benefit
s. d.
0
1
2
3
i0
6
6
6
0
Corresponding reduc
tion in weekly rate of—
Total number of contri
butions credited
Cash bene
fit
39 to 41________________
36 to 38........................ .........
s. d.
7 6
9 0
JO
»0
Disable
ment
benefit
s. d.
3 6
4 6
20
J0
i No reduction.
> Sickness and disablement benefits suspended.
» Maternity benefit also suspended.
Method of Settlement of Disputes
Members of approved societies may address inquiries regarding
complaints or disputes to the secretary or agent of the society to which
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they belong. Complaints or disputes between the member and the
society are settled on the basis of the rules of the society, the proper
procedure to be followed being ascertainable only by reference to
these rules. Unless otherwise stated in the rules, complaints and
disputes are sent directly to the secretary at the headquarters of the
society.
In cases where a member of an approved society considers himself
aggrieved by the society’s decision, he may appeal, in the first in
stance, to the tribunal set up under the society’s rules, with a right of
further appeal to the Minister of Health, whose decision is final and
conclusive.
Administration
The Minister of Health has central supervision over the national
health-insurance scheme for England and Wales. In Scotland the
corresponding supervision is vested in the Department of Health for
Scotland; the Ministry of Labor for Northern Ireland is responsible
for national health insurance in that country. There is a National
Health Joint Committee which coordinates the work of these depart
ments. The cost of the central administration is borne by the
Exchequer.
General supervision over the administration of the scheme is exer
cised by the Minister of Health. The latter is responsible for deter
mining all questions relating to insurability and for enforcing statutory
contribution payments. The Minister of Health has the right to
withdraw authority from any society which is shown by investigation
to be administering the scheme in a manner prejudicial to the interests
of its members.
Inspectors are appointed under the insurance acts, and it is part
of their duties to enforce compliance with the provisions of the acts
and to assist employers and insured persons in any difficulties. These
inspectors are stationed at the important towns in the country and are
easily accessible to the general public.
Many of the approved societies which originally entered the national
health-insurance scheme have disappeared. The number had been
reduced from 2,208 in the first years of the system to 859 in 1935.
Of this total, 26 societies had “branches,” the total number of which
for national health-insurance purposes was 5,506. The actual num
ber of approved society units administering the system in 1935 was
6,339. Membership in these approved societies ranged from 34 to
2,600,000. The approved societies, grouped according to size,
1932-1934, are shown in table 4.
All cash benefits and additional-treatment benefits are administered
by the approved societies. In the case of medical benefit the control
of the approved societies is limited to the right to elect members to
the insurance committees as representatives of the insured population.
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Social Security
T a b l e 4 .— Number of Approved Health-Insurance Societies, Classified According to
Size, 1932 to 1934
Number of societies without branches
Number of members
Total
societies
All societies.
915
Less than 100.......
100 to 99 9 -............
1.000 to 9.999____
10.000 to 99,999...
100.000 to 999,999..
1,000,000 and over.
34
440
316
102
20
Number
United
King
dom
134
of socie
ties with
Northern branches
Ireland
English
Scottish
631
71
35
13
26
34
381
189
27
28
13
36
22
7 .................
7
8
3
1
8
10
7
Welsh
3
Each approved society has its own committee of management,
office staff, sick visitors, and agents. The duties of the agents consist
for the most part in the delivery and collection of about 36,000,000
contribution cards a year, and the disbursement of over 28,000,000
cash payments annually.
The Government Actuary is charged with the periodic valuation of
funds belonging to the approved societies. On the other hand, the
expenditure of national health-insurance funds, both by approved
societies and insurance companies, must be audited by auditors ap
pointed by the Treasury. If faulty administration is suspected, the
department involved gets in touch with the approved society in ques
tion by letter, or makes arrangements for a visit from a departmental
officer, in order to bring about necessary reforms.
INSURANCE COMMITTEES
The local administration of medical benefit and drugs is in the
hands of insurance committees. There is one insurance committee in
each county and county borough and large burgh. These insurance
committees, of which there are about 200, have local offices and staffs,
which are responsible for the supervision of about 19,000 doctors and
12,000 chemists.
Statistics of Operation
The estimated number of persons entitled to benefits under the
health-insurance system in 1937 was 16,793,000. This was an increase
of approximately 6,000,000 over the number insured in 1912, the first
year the system was in operation. Table 5 shows the approximate
number of persons entitled to benefits for the 10-year period, 1928 to
1937.
The receipts and expenditures under the health-insurance system
are shown in table 6 for the 25 years the system has been in operation.
The accumulated funds at the close of 1937 amounted to £118,788,000.
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Federal Reserve Bank of St. Louis
92
Monthly Labor Review—January 1939
T a b l e 5.- —Estimated Number of Persons Entitled to Benefits Under British National
Health-Insurance System, 1928 to 1937
[Figures are in thousands]
N avy,
Army,
Total Approved soci and Air
eties
number
force
of men
fund 1
and
women
Men Women Men
Year
Women
Men
Persons over
age 65 3
Exempt per
sons 3
Deposit con
tributors
Men
Women
1928_________ ____
1929______________
1930______________
1931______________
1932______________
14,711
14,958
15,269
15,426
15, 536
8,808
8,935
9,133
9,229
9, 294
4,775
4,852
4,919
4,939
4,941
145
135
129
124
121
139
137
135
132
128
90
96
102
103
108
13
12
11
10
10
6
7
1933______________
1934______________
1935______________
1936 3_____________
1937 3_____________
15,444
15, 542
15, 776
16,398
16,793
9,204
9,244
9,379
9, 764
9,975
4.897
4,915
4, 962
5,139
5,274
118
114
120
125
126
122
116
115
120
126
113
120
122
127
136
9
9
8
7
6
M en
Women
7
6
598
634
669
704
737
137
150
164
178
191
6
6
6
6
6
771
802
835
866
889
204
216
229
244
255
r
1 Insured for maternity benefit for wives only.
3 Entitled to medical benefit only.
3 Provisional figures.
T able 6.—Receipts and Expenditures Under British Health Insurance System, 1912
to 1937
[Figures are in thousands of pounds]
Item
1912-27 1928
1929
1930
1931
1932
1933
1934
1935 19361 19371
Total receipts________________ 421, 612 32, 720 33,128 33,543 33,639 31,626 31,936 33, 380 33,792 35,477 36, 628
Contributions________________ 284, 296 22,007 22, 021 22,075 21,897 21,382 22,020 22, 854 23,141 24, 273 25,088
Interest, etc_________ . . . . . . 40, 609 4, 674 4,672 5,251 5,051 5,088 4,860 5,312 5.029 5,278 5,168
Parliamentary votes and grants. 93,515 5,989 6,435 6,197 5,956 5,156 5,056 5, 214 5, 622 5,926 6,051
Retransferred from N . H. I.
321
3,192
50
20
735
Total expenditures___________ 255,971 27,219 29,231 27,804 27,773 26,773 26,790 25,637 26,148 27,454 28,642
Benefits:
Sickness_________________ 94, 550 9,564 11, 228 9,359
Disablement____________
34, 907 5,126 5,388 5,355
Maternity................................ 18,547 1,443 1,428 1,484
Medical_________________ 94,024 8, 498 8,760 8,679
Other, including sanator iu m _ _ ........ ................... . 13, 943 2,588 2,427 2,927
9,327
5,105
1,448
9,035
9,247
5,261
1,405
8,469
9,562
5,095
1,296
8,633
8,306
5,286
1,311
8, 557
8,481
5,362
1,328
8,829
9,005
5,413
1,383
9,234
9,749
5,363
1,406
9.657
2,858 2, 391 2,204 2,177 2,148 2,419 2,467
Total cost of administration___
53,026 4,399 4, 518 4,748 4,777 4,677 4,764 4,692 4,696 4, 773 4,884
Approved societies and insurance committees____________
Central Departments.................
40,904 3,582 3,639 3,862 3,913 3,845 3,923 3,833 3,826 3,890 3,984
900
864
832
841
859
870
883
12.122
817
879
886
Transferred to N . H. I. Joint
Committee (Central Fund
and Unemployment Arrears
3 5,402
154
356
397
395
245 32,352
1 Provisional figures.
3 Includes £1,100,000 transferred to Exchequer from N avy, Army, and Air Force Insurance Fund and
£364,000 transferred as a result of the severance of the Irish Free State.
3 Includes £1,148,000 transferred to N . H. 1. funds of other countries.
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Federal Reserve Bank of St. Louis
Paid Vacations
AM ENDM ENT OF BELGIAN LAW ON VACATIONS
WITH PAY 1
THE scope of the Belgian law of July 8, 1936,2providing for vacations
with pay for employed persons, was extended by a law passed August
20, 1938. The law applies to workers in mining, manufacturing and
commercial enterprises, public utilities, building and public works,
transportation, public services, hospitals and similar institutions,
hotels and restaurants, theaters, and maritime fishing. The original
law applied only to establishments or enterprises employing at least
10 persons, but was extended by a royal decree of October 2, 1937, to
establishments in which at least 5 persons were employed. Under
the amended law there is no limitation as to the number of workers
employed in the undertakings subject to the law. Also, it is no
longer required that the qualifying period of 1 year should be served
under the same employer; workers are to be credited with service
completed with different employers. In general, the length of the
vacation period is 6 days, but it is provided that the vacation shall be
doubled for young persons under the age of 18 who have acquired
the right to a vacation, and if the financial condition of the National
Auxiliary Holiday Fund permits, the annual vacation period may be
increased for workers generally. This fund is to be established by
royal decree for the purpose of financing additional days of vacation
and will be formed from contributions by employers of one-half of 1
percent of wages.
During vacations, workers are entitled to receive their regular pay
from the vacation funds, under a system whereby stamps equivalent
to 2 percent of wages are affixed by the employer on each pay day to
the “holiday cards” held by the employees.
The provisions regarding the increased vacations for young persons
and extended holidays for other persons will be made effective by
royal decree at a date not later than May 1, 1939. However, the
extended holidays for young persons may be suspended for 1 year on
the recommendation of the joint committee in a particular industry.
1 Bulletin du Comité Central Industriel de Belgique (Brussels), September 7, 1938, p. 1164.
! M onthly Labor Beview, September 1936, p. 617.
93
115 6 52 — 39— — 7
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Federal Reserve Bank of St. Louis
Housing Conditions
EXTENSION OF SLUM CLEARANCE IN DISTRICT OF
COLUMBIA
INCREASED Federal loans to the Alley Dwelling Authority for the
District of Columbia have made it possible for the Authority to under
take the construction of four projects to house 1,257 low-income fam
ilies in Washington.1 About 5,000 persons will live in these dwellings
at base rentals averaging less than $4 per room per month, exclusive
of charges for gas, electricity, and heat. Residence will be limited to
families having incomes of less than $1,100 per year.
The necessary funds have been provided under a contract with the
U. S. Housing Authority, approved by the President, whereby
$6,600,000 will be lent by the Federal Government, to be repaid in
60 years at the prevailing Federal interest rate, and the difference
between this sum and the $7,336,000 necessary for the projects will be
raised by the Alley Dwelling Authority through the public sale of
interest-bearing notes. This method of financing conforms with the
provisions of the Federal Housing Act, 1937, authorizing loans of
Federal funds to public-housing agencies to assist in the development,
acquisition, and administration of low-rent housing or slum-clearance
projects to a total not exceeding 90 percent of the development or
acquisition cost of the project.2
Supplementing the loan, the U. S. Housing Authority has agreed to
make annual contributions of not over 3 J4 percent of the total develop
ment cost of these four projects over a 60-year period. These sums
are to insure low rentals to tenants by making up the differences
between the amounts of rent low-income families can pay and the
economic rent necessary to maintain and operate the projects, includ
ing interest and amortization of the sum loaned. The Alley Dwelling
Authority will also subsidize these projects through complete exemp
tion from taxation. As many unfit and insanitary dwelling units
must be eliminated as new dwelling units are built, under the contract.
The four projects for which loans have been authorized are expected
to create 1,692,000 man-hours of direct labor on the sites and 2,538,000
man-hours of labor off the sites for fabricating materials and other
1 U . S. Housing Authority, Press Release No. 202, November 28, 1938.
2 See M onthly Labor Review for October 1937 (p. 918).
94
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Federal Reserve Bank of St. Louis
H o u s in g C o n d itio n s
95
work directly related to the projects. Work on the sites is expected
to require the employment of 1,500 men.
Provision of Federal assistance to the Alley Dwelling Authority
through the facilities of the U. S. Housing Authority follows the same
principles as in other cities throughout the country. The loan con
tract makes it possible for the Authority greatly to extend its work.
Up to the time this loan was contracted for, the Authority had operated
with public funds totaling $865,000, used to buy and sell properties,
and the Authority had completed five housing projects in addition to
reclaiming other slums. The original legislation 3 under which the
Authority operated provided for the reclamation of squares containing
alley dwellings. About 200 alleys, estimated to house 2,500 lowincome families, fell within this jurisdiction. The number of inhabited
alleys has been reduced to 176.
In amending the enabling legislation to permit Washington to share
in the benefits of the Federal housing law of 1937, Congress also ex
tended the coverage of the Alley Dwelling Act so that operations might
be extended beyond alley squares.
The Alley Dwelling Authority in its application for a Federal loan
stated that the shortage of decent houses for low-income families is
acute in Washington. At least 20,000 families are living in unfit,
unsafe, and insanitary dwellings. Of this total 8,000 are Negro and
4,000 are white families living in alley slum areas, and 6,000 are
Negro and 2,000 are white families living in substandard dwellings
scattered throughout other sections of the city. Although residential
construction in Washington in recent years has exceeded that in
almost every other American city, there is still a shortage of accom
modations renting for less than $40 a month. The rapid growth in
the population of Washington has contributed heavily to the sub
standard condition of housing. The existence of alley dwellings,
one of the city’s chief slum problems, dates back to the pre-Civil
War period when domestic servants often had living quarters at the
rear of their employers’ dwellings. The custom of building houses
in alleys spread to other families of low income.
INCREASE IN F. H. A. INSURED LOANS
THE Federal Housing Administration insured loans amounting to over
$2,000,000,000 for the purchase, refinancing, or improvement of resi
dential properties between June 1934 and the early part of December
1938, and has stimulated home construction, according to statements
of the Administrator.4 Coincident with the growth of insured loans
the monthly income of the F. H. A. has increased to about $1,000,000,
3 See M onthly Labor Review for March 1938 (p. 711) and March 1937 (p. 550).
4 Federal Housing Administration. Press Releases Nos. 341 and 342, dated December 4. 1938.
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Federal Reserve Bank of St. Louis
96
Monthly Labor Review—January 1939
or almost enough to meet operating expenses. Net losses chargeable
to the reserve funds are reported to be very slight.
Mortgages on 300,000 small dwellings in the amount of $1,235,000,000 have been insured and placed on a premium-paying basis
under the insured-mortgage system. Insured loans on 127 large-scale
rental housing projects total $60,000,000, and insured propertyimprovement loans total 1,775,000, in the amount of $710,000,000.
Of the 286,000 homes with insured mortgages as of October 31, 1938,
only 358 had been acquired by the F. H. A. following foreclosure by
lending institutions. Almost 200 of these properties had been sold
by that date. The net loss sustained amounted to $140,688, which is
deductible from the reserve fund of over $24,000,000. The reserve
is growing steadily as a result of the increase in funds accruing from
appraisal fees paid by mortgage-loan applicants and from mortgageinsurance premiums paid monthly by borrowers on F. H. A. insured
loans.
The Administrator cited figures of the Bureau of Labor Statistics
showing the growth in the number of building permits for urban
dwelling units in one- and two-family structures in comparison with
the growth in the number of new small-home mortgages accepted for
insurance by the F. H. A., in order to show the more rapid increase
in insured mortgages. The steadily increasing proportion of total
mortgages insured and the actual increase are believed, by the Ad
ministrator, to have resulted from the liberalization of the loan terms
under legislation adopted in 1938.5
>## # # # # *
FRENCH HOUSING LAW, 1938 6
THE need for the abolition of insanitary dwellings in France and for
the improvement of housing in urban centers and in the country, which
was brought out by a study of housing conditions by a special govern
mental committee, was recognized by the decree-laws of May 24 and
June 17, 1938, providing for the closing or demolition of insanitary
buildings and for the erection of cheap dwellings. Earlier laws pro
vided for such measures, but the present decree-laws aim at reducing
delays and simplifying the procedure and at the same time lay down
the rules for determining the compensation to be paid to the owners
and, when necessary, to the tenants. The first act is divided into three
parts, i. e., slum clearance, erection of low-cost houses, and improve
ment of rural housing.
* For amendment to the National Housing Act of 1934, see M onthly Labor Review for March 1938 (p. 707).
11France. Journal Officiel (Paris), M ay 25,1938 (p. 5863), and June 26,1938 (p. 7327).
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Federal Reserve Bank of St. Louis
Housing Conditions
97
Slum Clearance
The law of May 24 provides that when a building constitutes, either
in itself or because of the conditions under which it is occupied, a
menace to the health of the occupants or the neighbors, the prefect,
upon the report of the departmental health inspector, shall within 1
month decide upon the facts and the causes of the unhealthful condi
tions and the proper steps to be taken to remedy them. The owners
and occupants of the property must be notified at least 8 days in ad
vance of the meeting of the departmental health committee, and in
case it is decided that the property is unfit for occupancy there is a
delay of 8 days before the order to vacate is issued. This order will
be a temporary one if the property can be put in proper condition.
The decree by the prefect prohibiting occupancy of the premises may
be appealed only to the Council of State. Penalties are provided for
failure to carry out the terms of the decree within the time limit fixed.
The communes, in order to improve sanitary conditions, may re
quire the total expropriation of one or several properties if their
insanitary condition is certified by the health bureau, the sanitary
commission, or other public bodies. In such cases hearings are to be
held and the prefect is to issue a decree carrying out the decision of
the municipal council. At the request of the prefect, the president
of the court in the locality in which the property is situated shall
appoint an expert to determine the value of each property, taking
into account its total or partial insanitary condition, the costs of
improving partially insanitary property, the value of the land on
which it is situated, and the indemnity for eviction to be allowed to
commercial or industrial establishments or other occupants. If more
than 10 properties are involved, a sufficient number of experts must
be appointed so that the matter can be settled within 2 months. If
the property is totally insanitary, the indemnity must equal the value
of the land alone without taking into account its rental value, but may
be diminished or increased by the probable receipts or expense result
ing from tearing down the buildings. If the property can be repaired,
the arbitral commission in determining the value takes into consider
ation the unhealthful conditions which are not specially related to the
property and those which are directly related to it. The cost of the
necessary repairs is then deducted. The indemnity allowed is to be
equal to the difference between these two elements. However, the
amount allowed may not be less than the value of the land. In the
valuation of either type of property no indemnity is allowable because
of dispossession or reinvestment. In cases in which the insanitary
condition arises from the act of the occupant, the indemnity for evic
tion is reduced by the amount gained as a result of the conditions
which are detrimental to the public health.
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Federal Reserve Bank of St. Louis
98
Monthly Labor Review—January 1939
The indemnity may, by special decision of the arbitral commission,
be divided into two parts, of wbicb tbe first, which may not be greater
than two-thirds of the total amount, may be paid before the premises
are vacated and tbe remainder afterward unless tbe tenant is relocated
through the efforts of the commune or some other public body.
Advances to the communes by the State may be made for the pur
pose of abolishing slum areas if they are approved by the superior
court of public hygiene. The amount of such advances may not ex
ceed 50 percent of the cost of the proposed operations. The interest
rate is fixed at 2 percent, and the period for repayment may not ex
ceed 40 years. A committee of 14 members appointed by the Minister
of Public Health will pass upon demands. The total amount ad
vanced for this purpose may not exceed 400 million francs.
Low-Cost Homes
The housing law of July 13, 1928, which has been extended many
times, the last time by the financial law of December 31, 1937, expired
at the end of 1938. The law of June 17, 1938, provides that the regu
lations concerning the order of priority of construction to be followed
shall be determined by the Ministries of Public Health, the Interior,
Finances, and Agriculture, taking into consideration local needs. The
amount of the advances by the State to public offices and to the housing
foundations may not exceed 65 percent of the cost price of the prop
erty, but may be increased to a maximum of 85 percent when repay
ment is guaranteed by a Department or a commune. Exemption
from payment of certain taxes levied by the Departments and com
munes is allowed for a period of 15 years after the completion of con
struction. The total funds appropriated for the housing organizations
by the laws passed in 1934 and 1935 were increased by 200 million
francs for 1938 and 400 million francs each for the years 1939 and 1940.
A decree signed by the Ministers of Finance and Public Health will
determine each year the division of these sums between the different
classes of operations. Priority will be given to the construction of
houses for persons evicted from slum areas.
Rural Housing
Paralleling the efforts to improve housing conditions in cities and
towns, the law provides similar advantages for rural workers. How
ever, it contemplates improvement of existing buildings rather than
new construction. These measures, when taken together with the
movement toward rural electrification, the provision of good drinking
water, and good roads, will have the effect, it is considered, of retain
ing on the land a large number of workers who have become dis
couraged because of bad living conditions.
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Federal Reserve Bank of St. Louis
Housing Conditions
99
A national committee representing the various ministries and agri
cultural organizations concerned, under the presidency of the Minister
of Agriculture, has general supervision of the Departmental housing
committees. The program is under the technical direction of an
inspector-general of rural housing. The Departmental committees
are charged with assisting farmers and rural artisans, either singly or
in groups, to improve both their farm buildings and their houses.
For this purpose long-term loans at a reduced rate of interest may be
granted. These loans are repayable by annual amortization over a
period of 30 years. The maximum loan which may be made is fixed
at 100,000 francs, not including the costs.
The beneficiaries of long-term loans will receive an annual rebate
on the amount of the loan if they have at least three children under 16
years of age at the time the loan is made. The amount of the rebate
ranges from 1 to 2 percent, according to the number of children.
The maximum amount to be set aside by the National Agricultural
Credit Fund for rural housing is fixed at 150 million francs.
HOUSING FOR INDUSTRIAL WORKERS IN
GERMANY 1
CONSTRUCTION of dwellings for workingmen’s families in Ger
many has been extended through a program which has involved sup
port by the employers and by the Government.
Employer Housing
Employees of a number of the large employers of Germany are in a
specially favored position with regard to housing. Particularly
extensive has been the construction undertaken by the heavy indus
tries of Rhenish Westphalia. More has been done through private
initiative in that section of Germany than elsewhere to provide ade
quate housing for workers. It was estimated that industrial enter
prises in that area controlled 240,000 houses at the end of 1937, or
sufficient dwellings to house over a million persons. In addition,
employers have assisted cooperative societies; as, for example, in the.
mining industry where the employers gave financial aid for the con
struction of almost 30,000 houses after the World War.
Investigation shows that 15 percent of the employer-owned houses
in Westphalia are occupied by families whose breadwinners are in no
way connected with the plants of the owners, 67 percent are occupied
by employees, and 18 percent by invalids and retired employees or
their widows. As the Government has placed restrictions on rents,
i Data are from report of Franklin E. Atwood, American consul, Cologne, dated November 2,1938.
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Federal Reserve Bank of St. Louis
100
M o n th l y L a b o r R e v ie w — J a n u a r y 1 9 3 9
it is not possible for owners to dispossess tenants in order to house their
employees.
According to a national survey made by German chambers of com
merce, 30 percent of the funds made available for housing of workers
in 1937 was furnished by employers in the district of Westphalia. The
contributions of these employers were in cash, building materials,
land, subsidies (on which income taxes must be paid), and assistance
to cooperative housing associations.
A single firm, Friedrich Krupp A. G., manufacturer of munitions
in Essen, had constructed 29,000 houses up to October 1937. These
buildings were largely at the Essen works. This firm aided in sup
plying housing for rental and purchase. The program was started
in 1860 when the rapid industrial growth threatened to outstrip the
labor supply. Within 4 years the management built 2,400 houses.
As the plan has worked out, garden space is furnished in connection
with the houses and the buildings are placed in landscaped parks.
Special provision is made for invalids, and churches are available for
different denominations.
In 1906 a foundation was established by a member of the Krupp
family to provide additional housing. Of the dwellings erected, half
were for rental to persons other than employees of the firm. This
foundation was converted into a cooperative housing society in 1934,
which at present controls a small town near Essen. Aid to coopera
tives was a part of the Krupp policy before the Great War, and four
building associations are now assisted, of which three are cooperative
societies and the fourth is a limited-liability company. The firm has
aided these organizations through stock purchases.
It is common for employers to assist in providing houses for workers
by contributing funds to various housing societies. Among these
organizations cooperative housing associations are an important source
of funds for low-cost housing. In addition to aiding these private
organizations employers are called upon to support the governmentcontrolled housing companies.
Government A id and Policies
Under German law employers are directly responsible for the social
well-being of their employees as a reward for loyalty of service, and
the employers therefore are cooperating closely with the Government
in the housing program. In addition to the funds furnished by em
ployers for housing, the Government is aiding by subsidizing rents,
making loans at low interest, and allowing tax exemptions.
In order to facilitate the Government’s homestead plan, the Society
for Promotion of Workmen’s Homesteads was formed in 1935. At
that time difficulty was experienced in securing land. Different
divisions of the society have worked to extend housing of various
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Federal Reserve Bank of St. Louis
Housing Conditions
101
kinds. Owing to these activities over a thousand workers’ homes
were completed during 1937 in the Cologne district alone, of which
60 percent were small homesteads and the remaining 40 percent were
apartments.
In instances where the rent for living space necessary for a worker’s
family is out of proportion to the breadwinner’s income, the Govern
ment grants assistance by rent subsidy or by providing money at low
interest and in sufficient quantity to permit owners to keep the rents
low. The rate of interest on public loans has been decreased since
1933 to an extent that has encouraged housing companies to make
liberal use of the loan facilities. Homes erected with these funds may
be rented at favorable rates.
Under the “Four-Year Plan” the cost of a house (exclusive of
land, the preparation for building, and the settler’s own work) may
not exceed 7,000 marks 2 of which 2,000 marks may be obtained in a
Government loan. The rate of interest is 3 percent and may be as
low as 1 or 2 percent if the applicant is especially meritorious or his
income unduly low. This interest rate is provisionally restricted to
5 years. In exceptional cases the settler may be required to furnish
only 10 percent of the total cost of construction. The greater part
of the balance required for completion of the Four-Year Plan houses
has been guaranteed by the German Labor Front. Funds needed that
can not be obtained through the regular lending agencies are secured
by the interested industrial enterprise or by a lien on the prospective
owner’s savings.
Exemption from real-estate taxes was granted for 20 years on
workmen’s homes completed between April 1, 1937, and March 31,
1940, by the terms of the real-estate law of 1936. This exemption
applies only to flats or homesteads that the Government finds suitable
for the working class and which do not, in general, rent for over 40
marks a month. As most of the houses being erected are in settle
ments where a great variety in the types of dwellings exists, not all
dwellings are covered by the tax exemption. To avoid such a com
plication within a single apartment house, a building in which the
average rental per unit is not over 40 marks may be exempt under an
amendment to the law.
Housing in 1937
A report of the German Building and Real Estate Bank, in coopera
tion with the German Society for Public Works, states that between
330,000 and 340,000 dwelling units were erected in 1937, or approxi
mately as many as in 1929. In large and medium-sized cities almost
four-fifths of the units constructed in 1937 had a maximum of four
rooms. The Real Estate Bank, being the trustee of the Government
s Average exchange rate of mark in 1937=40.2 cents.
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Federal Reserve Bank of St. Louis
102
Monthly Labor Review—January 1939
for granting loans, had at its disposal 397.25 million marks for lowcost housing, of which 251.8 million marks had been loaned. Lowcost construction, which declined in 1937, was believed to be on the
increase in 1938 owing to the promulgation of new regulations late
in 1937.
The bank found that the proportion of the total capital furnished
by owners of the dwellings erected has tended to decline and equals
about 30 percent of the total cost. This reduction has been compen
sated for by increases in Government loans and assistance given by
individual employers.
********
BRITISH HOUSING ACT, 1938
EQUAL rates of contribution by the British Government are author
ized for slum clearance and abatement of overcrowding for assisted
housing provided on or after January 1, 1939.1 This is a change from
earlier procedure under which a larger subsidy was granted for slumclearance projects than for the abatement of overcrowding. The
Housing (Financial Provisions) Act, 1938, makes other changes in the
terms of the consolidated housing law enacted in 1936, such as basing
the amount of grants on number of dwelling units provided instead of
on number of persons rehoused, extension of aid to rural housing, and
new terms of contribution for local governments.
In equalizing the British Government’s contributions for slum
clearance and relief of overcrowding, Parliament took into account
the findings of the Ministry of Health published in Circular 1696,
dated April 23, 1938. The Ministry concluded that, notwithstanding
the greater attention given to slum clearance by local authorities in
planning projects in the past, there was a likelihood that after 1938
rehousing undertaken for slum clearance and to remedy overcrowding
would be in approximately the same proportions. The 1938 law,
therefore, stipulates that beginning January 1, 1939, the contributions
shall be the same, and recognizes that the economic positions of those
living in unfit and in overcrowded dwellings do not differ. This action
enables local authorities to plan future construction in such a way
that the most urgent work may be done first without reference to the
comparative amount of financial aid available.
In future the basis of contribution by the central Government will
be the number of houses or flats supplied and not the number of
persons rehoused. The period during which the subsidy may be paid
is limited to 40 years. For urban projects the normal rate of grant is
£5 10s. per house per year, but for buildings in blocks of flats on
expensive sites the rate ranges as high as from £11 per dwelling unit
upwards. In districts where the rent level is below the national
1 The Local Government Chronicle (London), No. 3753, November 19, 1938, p. 934.
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Federal Reserve Bank of St. Louis
H o u s in g C o n d itio n s
103
average, the normal rate of grant may be increased from £5 10s. per
dwelling unit annually to £6 10s., in order that too great a burden
may not be placed on the local government.
Subsidy to rural housing is authorized, not only to replace unfit and
insanitary housing, but to extend housing to meet the general needs
of the agricultural population. Although rural district councils are
the authorities most concerned with housing, assistance is not re
stricted to them under the law. The subsidy to be granted normally is
£10 per house per year for 40 years, but this sum may be increased to
an amount not exceeding £12 where costs are high and rents that may
be charged are unusually low.
Local authorities make tax contributions to housing normally equiva,lent to one-half of the Exchequer contribution over the period of sub
sidy. However, where the Exchequer grant is £6 10s., the local
authority is responsible only for the maximum sum normally allotted,
amounting to £2 15s. On expensive sites the local authority is
responsible for one-half the amount contributed by the central
Government. This amounts to £5 10s. or more, depending upon the
cost of the site and the Exchequer contribution. For housing the
agricultural population, the rate of contribution of the local authority
is a flat sum amounting to £ l per house per year for 40 years.
County councils are also liable for new contributions under the 1938
legislation. If a county district receives an Exchequer grant of
£6 10s. per house per year, it must contribute £1 per house per year
from county council funds. Special assistance for housing the agri
cultural population is provided in the amount of £1 per house per
year, to be paid by the county council for 40 years, plus a contribution
equal to the excess, if any, over £10 of the Government’s contribution.
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Federal Reserve Bank of St. Louis
Standards and Cost o f Living
SPENDING HABITS OF FACTORY WORKERS
A STUDY was recently made in which 1,665 factory wage earners
and their wives or mothers, in 16 cities, were interviewed in order to
obtain information on the ways and times at which their weekly
earnings were spent. The findings indicated that in the majority of
cases from 75 to 100 percent of the earnings had been spent by the
end of the day following pay day. Expensive items were likely to be
contracted for on pay day or the day after, whereas a large proportion
of the small items such as food and drugs were purchased when needed,
without relation to pay day. The peak purchases of these were,
however, likely to occur at the end of the week.
The study 1 was made by the Ross Federal Research Corporation.
In selecting the persons for interview, persons on relief, unemployed,
or working in Government projects were excluded. The interviews
were equally divided between males and females, and those under and
over 30 years of age. The cities included were Birmingham, Ala.;
New Britain, Conn.; Wilmington, Del.; East St. Louis and Peoria, 111.;
Gary and Muncie, Ind.; Dearborn and Flint, Mich.; Passaic, N. J.;
Troy and New York, N. Y.; Canton, Ohio; Wilkes-Barre, Pa.; Wheel
ing, W. Va.; and Racine, Wis. Muncie, as the “typical American
city,” was tabulated separately.
The following table shows the percentage distribution of replies to
each of the six questions propounded.
Distribution of 1,665 Factory Workers, in 16 Cities, by Spending Habits
Item
1. Purchases of small items (food, drugs, etc.) most likely to be made on—
Pay day___________________________ _______
*
...............
Immediately following pay day_____
Immediately prior to pay d a y ..1.1.1111..................................
D ays not necessarily related to pay day
........................................................
N ot known___________________________ I . . . I I " ..........
............
2 ^Pav dav *ng more t*lan
die weekly salary most likely to be purchased
Immediately following pay day___IIIIIIII.........
Immediately prior to pay day. .H IIIIIIIII........................................................ .
Days not necessarily related to pay d a y ...............................................................
N ot known________ ____ ____
_____
______—
3. Advertisements most likely to be noticed on— ....................................................
Pay day.................................................................
Immediately following pay day..
.........................
............
Immediately prior to pay day. .'” 111111111..........................................................
D ays not necessarily related to pay day "
N ot known..................................................
............................................................
1 Eeported in Sales Management (New York), December 1, 1938, p. 16.
104
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Federal Reserve Bank of St. Louis
Muncie
15 other
cities
Percent
33
16
Percent
18.7
22.4
1.5
54.4
3.0
49
2
32
24
24
20
9
6
18
55
12
26.6
35.3
1.7
26.2
10.2
5.9
6.2
24.5
56.4
7.0
105
S ta n d a r d s a n d C o s t o f L iv in g
Distribution of 1,665 Factory Workers, in 16 Cities, by Spending Habits— Continued
Item
4. Of money received on pay day, there is left for spending, at end of second day—
5. Moderate increase in pay would be spent in—
6. 1939 earnings expected, from present indications, to be—
Muncie
15 other
cities
Percent
Percent
32
30
12
12
4
6
3
1
27.5
28.5
15.3
10.2
4.9
8.6
2.0
.4
2
29
17
6
4
29
7
5
8
2
4
9.6
26.6
11. 1
10.0
3.0
34.4
3.8
14.0
10.9
3.3
5.5
22
5
43
30
34.5
6.1
34.0
25.4
No striking differences as between the sexes were noted in the
answers to questions 1 or 2. As regards question 5, however, more
men than women stated that they would use an increase in salary to
buy or build a house, buy articles for use in their free time, take a
trip, buy a car, and improve their education. More women than men
would improve the attractiveness of their present dwellings, buy laborsaving devices, improve their personal appearance, save money, and
pay their debts.
Those of both sexes under 30 were more likely than those over 30
to move to better homes, improve their appearance, buy a car, and
improve their education.
As regards question 6, the report states:
Males were more optimistic than females, those under 30 more so than older
people, but very few in any group or city looked for less money next year. Wage
earners face 1939 with confidence.
W W W
STANDARDS OF LIVING IN AN INDIAN-M EXICAN
VILLAGE
THE scale of living in 37 families of farm laborers in the IndianMexican village of Tortugas, N. Mex., typical of other farm workers
along the Rio Grande River, is the subject of a recent study by the
Farm Security Administration.1
i U. S. Department of Agriculture. The Farm Security Administration and the Bureau of Agricultural
Economics. Standards of Living in an Indian-Mexican Village and on a Reclamation Project, by C. P
Loomis and O. E. Leonard. Washington, 1938.
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Federal Reserve Bank of St. Louis
106
M o n th l y L a b o r R e v ie w — J a n u a r y 1 9 3 9
These families are part of a culture probably a thousand years old.
The parents of the original inhabitants of the village were for the
most part native Indian, and the present villagers are more essentially
Indian in their physiological make-up than are the majority of Mexi
cans in the valley.
Although the villagers own the small adobe houses in which they
live, these people are practically “a landless proletariat,” as the
dwellings which they have built themselves are on public property.
The fertile valley at their doors on the west and south belongs to
American farmers, and the desertlike mesa on the north and east is
owned by the Government. Some of the families attempt to pasture
goats upon the sage and briars, and most of the families get their fire
wood from this neighboring land.
The male heads of these families had attended school for less than
2 years and the homemakers for less than 3 years. At the time the
survey was made, 67 children over 6 years old living at home were not
at school. Six were reported as never having attended school and 50
percent of those who had been at school had not more than 4 grades
to their credit.
For 33 of the households no participation in any organization except
the church was reported for either the male heads of the family or the
homemakers. Of 135 children who lived at home only 8 are reported
as attending any nonchurch or institutional gathering during the year
under review.
In 1935 the total cash receipts for these families averaged $344, of
which $268 was from wages, about one-half being earned from public
works and $76 coming from gifts, cash relief, and the production and
sale of a few farm products by several of the households.
The annual total value of the family living in 1935 for these 37
families, made up of households of 5.3 full-time residents, averaged
$347, 96 percent of which represented purchases. The food averaged
$193, or 55 percent of the whole budget, one-half of this being used to
buy flour, chili, and beans. The cost of clothing averaged $50, or
about 14 percent of the budget.
According to some experts on nutrition, the annual cost of a re
stricted diet which furnishes a minimum of protective and other foods
for 5 persons is $350. Such diet is considered inadequate for a long
period. Yet the food budget of these 37 Indian-Mexican fam ilies
with an average membership of 5.3 persons averaged only $193.
The following table indicates the differences in the expenditures for
small and large families. The large families had to draw in even on
the necessaries of life, spending only $47 per adult male unit for food
as compared with $64 expended by the smaller families.
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Federal Reserve Bank of St. Louis
107
S ta n d a r d s a n d C o st o f L iv in g
Average Value of Goods and Services Consumed by 37 Farm-Laborer Famities of Specified
Size, Tortugas, N. Mex., 1935
Average per adult male unit
Average per family
Item
Small
Large
All
Large
Small
All
families families1 families1 families families1 families1
37
0. 4
3.7
5.3
18
0.6
2.4
3.7
19
0.3
4.8
6.9
Total value of family living---------------------------Furnished_____________ ____ _____ --Purchased_____________________ _________
$347
15
332
$298
16
282
$394
14
380
Food, total__---------------------- -----------------------Furnished.. . . . ----------------- --------Purchased_______________ _____________
Ilousing and maintenance, total--------------------Furnished____ _________________________
Purchased________ . . . . ------ -- -------- -Clothing ------------------- ----------------------------Health, births, deaths______________ _________
Advancement------------------------------------- -----Automobile_________________________________
Incidentals and other------------------------------------
193
2
191
55
13
42
50
20
6
10
13
158
1
157
54
15
39
35
21
10
5
15
226
2
224
57
12
45
63
20
3
13
12
$95
4
91
$122
0
116
$81
3
78
64
47
1
46
11
2
9
13
4
1
3
2
52
(2)
52
15
4
h
14
5
2
3
4
(2)
64
23
7
16
14
9
4
2
6
1 Small families are those having fewer than 5 members, and large families, 5 or more members.
Less than 50 cents.
2
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Federal Reserve Bank of St. Louis
Cooperation
SOME NEW COOPERATIVE PROCEDURES
DURING the past year several new variants in cooperative procedure
by local associations have been noted. These innovations affect such
widely varying points as accounting, share capital, patronage refunds,
and life insurance.
J o i n t b o o k k e e p in g .— h i September 1937 three local cooperative oil
associations in western Minnesota undertook to have their bookkeeping
done jointly. They felt that this would enable them to obtain at
moderate cost more expert service than would ordinarily be possible,
and would release the manager’s time for his other duties. Tliis was
found to work out so well that three other local associations in the
same region joined the plan, and it is reported that a seventh associa
tion will enter in January 1939. The Midland Cooperator of Novem
ber 21, 1938, summarizes the benefits that have resulted, as follows:
Perhaps the advantages of cooperative bookkeeping to the associations taking
part can best be summarized like this: A competent, full-time bookkeeper;
accurate, timely, and informative monthly and yearly reports; and operating
efficiency which has been improved to an almost unbelievable degree.
There was one association, for instance, which had been unable to show earnings
for 3 years. Things were in terrible shape. Then came co-op bookkeeping
service. After 6 months, the same co-op showed earnings of $883, and most of it
could be credited definitely to the replacement of disorderly with orderly book
keeping.
Such arrangements are being fostered by the Midland Cooperative
Wholesale, which reports that similar plans are under way for groups
of associations in and around Jackson and Minneapolis, Minn.
S h a r e c a p i t a l .—Mention was made in a previous issue of the Monthly
Labor Review 1 of the “revolving fund” and “rotating capital” plans
adopted by organizations in the Middle West, in order to increase the
capital stock. Under these plans part of the patronage refund is
retained for either a fixed or varying period as share capital. The
reports indicate that an increasing number of associations are adopting
one or the other of these plans. A novel variant reported recently in
Wisconsin was that of an association which adopted a measure
intended to insure that the members who made the most use of the
association s services should provide working capital in proportion.
Its annual meeting decided that hereafter every member must have
1M onthly Labor Eeview, M ay 1937 (pp. 1186-1188).
108
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Federal Reserve Bank of St. Louis
C o o p e r a tio n
109
one $10 share for every $100 worth oEgoods purchased from the asso
ciation in any one year. The extra shares are*to be paid for by
accrual of patronage refunds.1
A dividend-exchange plan was inaugurated in a small way among
a few of the associations in Wisconsin, and is under consideration in
others. In order to induce traveling cooperators to seek out and
patronize cooperative associations wherever they go, the participating
associations agree to keep records of such purchases and to remit the
patronage refunds on them to the cooperator’s home association for
distribution.
L i j e in s u r a n c e b a s e d o n p a t r o n a g e .—Another new patronage benefit
in the United States, recently reported, is that of the purchase of lowcost term life insurance. The pioneer in this move is the Isanti
County Cooperative Association, Cambridge, Minn. This association,
which handles petroleum products, automobile tires and accessories,
hardware, and farm machinery, has over 1,400 members and its busi
ness in the year ending January 31, 1938, amounted to nearly $273,000.
Its plan, arrived at with the Cooperators’ Life Association, became
effective November 1, 1938. The plan is open only to paid-up share
holders, in reasonably good health, who have bought and paid for at
least $50 worth of goods during the last fiscal year. The amount of
insurance will be based upon the amount of the 'member’s purchases
and upon his age. It is stated 2 that the present average purchases
will cover about $200 of insurance per member.
The auditor of the Northern States Cooperative League calculates
that an increase of as much as 7 percent in the Isanti Association’s
business, as the result of the scheme’s appeal, will increase the oper
ating efficiency sufficiently to cover the premium on the policy. The
plan is therefore expected to pay for itself.
COOPERATIVE FUNERAL AID IN STATE OF
WASHINGTON
THERE are a number of cooperative burial associations in the Middle
West which provide undertaker’s service and interment.3 In the
State of Washington, under Grange auspices, there has been developed
a type of funeral association which is a combination of contract
undertaking service and mutual aid.
The Grange News4 reports that the county granges in Grays
Harbor, Kitsap, Okanogan, Spokane, and Yakima Counties have
1 Midland Cooperator, July 1938.
1Cooperative Builder (Superior, Wis.), September 24, 1938.
3See M onthly Labor Review, March 1938 (p. 647).
‘ Orange News (Seattle), issues of July 30, September 17, October 22, and November 5, 1938.
115652— 39------ 8
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Federal Reserve Bank of St. Louis
110
M o n th l y L a b o r R e v ie w — J a n u a r y 1 9 3 9
formed “cooperative mortuary funds,” membership in which is
restricted to grange members in good standing. These are mutual
benefit associations, operated on an assessment basis. The rate of
membership fee and of assessment may vary. In the Spokane County
organization, however, each applicant pays two assessments of 30
cents each, plus 25 cents which is placed in a reserve fund—a total of
85 cents at the time of joining. The applicant “must also give his
word of honor that he is in good health” at the time he joins. The
plan does not go into operation until there are 350 members. Under
this plan, when a member dies his family receives the total amount of
the previous assessments, minus 5 cents per member for administra
tive costs. A new assessment of 30 cents is then collected from each
member.
A member failing to pay his assessment within 30 days forfeits not
only his right to benefit but also the money he has already paid in.
The same occurs if he loses his good standing in the grange.
The State grange has made a contract with the Washington State
Undertakers’ Association whereby private undertakers (members of
the association) who ratify the contract agree to provide “complete
funeral service” for $165. It was stated that 44 undertakers had
ratified the plan by the middle of September.
The contract plan, although not representing an extension of
cooperative effort, makes available low-cost service to the grange
members. By utilizing the services of private undertakers it avoids
controversies such as have arisen in Minnesota, Iowa, and Wisconsin.
In all of those States, however, the cooperative associations have won
the right to operate.
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Federal Reserve Bank of St. Louis
Self-Help Among Unemployed
FEDERAL AID TO SELF-HELP COOPERATIVES
1 HE I ederal Relief Act of 1938 contained a clause authorizing the
Works Progress Administration again to make grants to self-help
groups of unemployed. Such grants had been made under the Relief
Act of 1933 but were discontinued in September 1935.
Regulations under which funds will again be made available were
issued by the Works Progress Administration November 21, 1938.
Under the terms of these regulations Federal funds will be used to
pay the wages of W. P. A. workers detailed to serve in key positions
in self-help projects, and to pay for equipment, quarters, and materials
to be used by the groups for productive purposes. In contrast to the
earlier procedure, it appears that all funds will be disbursed by the
State W. P. A., not by the cooperative groups themselves.
The new regulations permit the disposal of services or goods in
the following four ways: (1) To their own members, (2) in exchange
with other associations, (3) in exchange with or sale to relief agencies,
and (4) by sale on the open market, “provided the prices at which
items are sold do not result in unfair competition with privately
produced items of the same type.”
Qualifications
In order to qualify as a “self-help or cooperative association for the
benefit of needy persons,” the association must show that (1) it
operates under the sponsorship of some public agency; (2) allows each
participant an equal voice in the determination of policies, “provided
that this requirement does not preclude such provision for supervision
as the sponsor feels necessary to insure proper management and the
safeguarding of public funds” ; (3) every member is certified as needy
on the basis of W. P. A. approved standards; and (4) the participants
share in the products or income of the association in proportion to
the value of their labor. It must also show that it is not eligible for
grants or loans from any other Federal agency.
Assistance Provided
Two kinds of assistance are provided for:
(1) The payment of wages for key workers in the self-help groups—
i. e., persons in executive, supervisory, clerical, or teaching positions,
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Federal Reserve Bank of St. Louis
111
112
M o n th l y L a b o r R e v ie w — J a n u a r y 1 9 3 9
or persons with needed special skills. This assistance will be provided
as a regular W. P. A. work project and must be passed upon by the
Federal Works Progress Administration. Such employment will be
included in the State’s employment quota.
The personnel in self-help organizations shows considerable turn
over as members obtain paid jobs in regular employment; this is
likely to be especially true of the leaders. The payment of wages to
the latter therefore acts as an inducement to their remaining in the
organization, tends to stabilize the policies of the organization, and
promotes greater efficiency in operation. It also provides additional
employment for W. P. A. workers.
(2) Limited nonlabor assistance to self-help groups to which
W. P. A. key personnel are assigned. This assistance will consist of
(a) capital equipment to be loaned to qualified groups, (b ) payment of
rent for quarters occupied by them, and (c) purchase of materials
needed by them.
Applications for such assistance also must be made by the State to
the Federal W. P. A., but expenditures authorized will not be included
in the State’s nonlabor budget but will be additional to it.
The capital equipment loaned to an association must ultimately
be purchased by the association or returned, but no repayment is
required for expenditures for rent or materials. A new cooperative
association, regardless of size, may borrow $1,000 worth of equip
ment, and an association already in operation may borrow equipment
not exceeding $50 per man-month of active participation during the
preceding month. After the end of a probationary period of 3
months, the amount of equipment loans will depend on the manmonths of participation. Thus additional equipment to the value
of $50 may be borrowed for each man-month of active participation
above the number of man-months on which the previous loan was
based. Loans are to be reduced proportionately when active par
ticipation for 3 successive months declines to the point where the
value of the equipment exceeds $50 per man-month of participation.
Expenditure for rent may not exceed an average of $1 per man-month
of active participation in the preceding month; or, in the case of new
associations, $1 for each estimated man-month of active participation
during the ensuing 3 months.
Materials purchased for the use of an association may not exceed a
monthly average of $5 per man-month of active participation in the
preceding month (during the ensuing 3 months, for new associations).
Gasoline and servicing of trucks are to be regarded as “materials,”
for the purpose of this provision.
It is specifically provided that no assistance under the 1938 act
shall be given to any association which still has in its possession
unexpended balances from funds granted under the 1933 act, until an
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Federal Reserve Bank of St. Louis
S e lf -H e lp A m o n g U n e m p lo y e d
113
agreement has been made between the State administrator and any
controlling State organization that all cash balances will be com
pletely expended or returned to the Federal Treasury within 30 days
after assistance is first made available. Satisfactory agreement must
also be reached as to the disposition of other assets acquired under
the early statute.
State Responsibility and Sponsorship
No group is eligible for assistance unless it is sponsored by some
public agency. When such sponsorship is obtained and application
is made to the State W. P. A. administrator, the latter must satisfy
himself that the association is competent in both production and
accounting, and that adequate provision has been made for perma
nence and continuity of operations. If the administrator believes it
advisable he may, with the consent of the sponsor, provide a manager
for any group, and in such case the manager will be responsible to
the State administrator.
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Federal Reserve Bank of St. Louis
Education and Training
W. P. A. TRAINING FOR HOUSEHOLD EMPLOYMENT
DURING the last 2 years two types of programs for the training of
women as household workers have been carried out by the Division of
Women’s and Professional Projects of the Works Progress Adminis
tration. The first scheme known as “household workers’ training”
was inaugurated in February 1936 in 17 States, New York City, and
the District of Columbia. About July 1937 a somewhat different
plan, designated the “household service demonstration project, was
launched. While the first scheme was established largely for training,
the second offered n f only training but employment in W. P. A.
demonstration centei
A brief account of o operation of these programs is given by Ellen
S. Woodward, Assist, it Administrator of the Works Progress Admin
istration, in the Dece nber 1938 issue of Occupations—The Vocational
Guidance Magazine (New York), from which the data in this article
are taken.
Under the earlier scheme 9,272 young women were registered in the
Works Progress Administration centers by January 1, 1937, of whom
5,685 had been trained and placed with private employers. Some of
the remaining trainees were still following their courses when this
report was made. As these women came from relief families, a sub
stantial number of them did not stay long enough at the centers to
secure their certificates but left to take paying jobs, the reports in
dicating that 1,085 who did not finish their training left to take posi
tions as household workers.
The household training and service demonstration centers had 5,963
enrollees in 1937. At the beginning of 1938 about 2,616 of these
had received certificates of proficiency, while 347 others had accepted
employment as household workers before receiving certificates.
Data on 604 placements from household service demonstration
projects in 17 States indicated that the median cash weekly wage
received by these workers in private employment was $8.53.
From February 1936 to January 1, 1938, the number of women who
received training totaled 15,235. The following table gives the num
ber of enrollees, the number who received certificates and were placed,
and the number of trainees who left before completing their training.
114
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Federal Reserve Bank of St. Louis
115
E d u c a tio n a n d T r a in in g
W. P. A. Household Service Programs—1936 and 1937
Item
Number of persons certificated____________
1936
_ .
.
_ ______
Withdrawals to take household jobs. _______________________
Withdrawals for other reasons - __________
.
____
Placements in private household w o r k ..______ __________________
Noncertificated workers___________________ _________________
9,272
5,113
3, 625
1,085
2,540
5,685
4,600
1, Q85
1937
5,963
, 616
2,253
347
1,906
2,399
2,052
347
2
Total
15,235
7,729
5,878
1.432
4,446
8,084
6,652
1.432
Extracts from a memorandum with reference to a new W. P. A.
operating procedure set up October 10, 1938, are quoted below:
Training centers may be operated where (1) there is a recognized shortage of
qualified workers for household employment, and (2) proper training facilities
either do not exist or the existing facilities require extension. Training centers
shall be located at points readily accessible to the trainees and a minimum of
20 trainees shall be assured prior to operation of a center.
Enrollment in training centers shall be open to persons referred by the United
States Employment Service or other approved public agencies and selected by
the local works progress administration. It should
clearly understood at the
time of enrollment that each enrollee is expected tc
ept an offer of a position
in household employment at the end of the training j '. iod, provided the offer is
reasonable from the standpoint of wages and condition ¡of work.
On October 15, 1938, training centers operated by the W. P. A.
were established in the District of Columbia and the following 23
States: California, Florida, Illinois, Kansas, Kentucky, Maryland,
Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Ne
braska, Nevada, New Jersey, North Carolina, Pennsylvania, Rhode
Island, South Dakota, Tennessee, Virginia, Washington, West Vir
ginia, and Wisconsin.
A survey of last year by the United States Employment Service
showed that 400,000 jobs were available for trained persons in house
hold employment, while 125,000 applicants were registered for house
hold jobs, 64,000 of whom were from relief rolls. These persons, the
Federal Placement Service reported, lacked the training requisite
to make them eligible for the jobs applied for.
The projects of the W. P. A. here reviewed cannot supply a suffi
cient number of trained household workers to meet the general de
mand nor assure adequate wages and conditions for household
workers in general. Such projects, however, “do help to alleviate
conditions in various communities and generally point the way
toward a solution of the problem—the establishment of standards
of efficiency to be met by household workers; and standards of wages,
hours, and conditions in household employment to be met by em
ployere.”
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Federal Reserve Bank of St. Louis
Industrial Accidents and Safety
M EETING OF NATIONAL SAFETY COUNCIL, 1938
THAT the reduction in the occupational death rate for the United
States during the past 25 years means the saving of the lives of some
285,000 industrial workers, was brought out at the annual meeting
of the National Safety Council, held at Chicago in October 1938.
In 1913, when the organized safety movement first got under way, it
was estimated that approximately 35,000 workers were killed. The
estimate for 1937 was 19,500, about 56 percent of the number for 1913.
Data were also presented at the meeting showing that the efforts
of organized safety in connection with public and home accidents have
brought tangible results as well as proof that such accidents can be
reduced. In 1913 the total accidental death rate for the United States
was 85.5 per 100,000 population. The total number of accidental
deaths from 1913 to 1937 was 2,231,000, but if the 85.5 death rate
for 1913 had continued this number would have been 2,441,000.
This meant a saving of 210,000 lives.
Although traffic safety problems occupied a very prominent posi
tion among the subjects under consideration by the meeting, great
interest was also displayed in the further reduction of industrial
injuries. In addition to the sectional meetings of various industries,
sessions dealing with particular topics covered the following: Dust,
fumes, gases, and vapors; falls of workers; industrial accident investi
gations; industrial explosion hazards; occupational disease; off-the-job
accidents; safe use of electricity; and safety fundamentals. One
special session was devoted to problems of governmental officials.
The following officers were reelected for the coming year: Presi
dent—D. D. Fennell, vice president, Burton-Dixie Corporation,
Chicago; and managing director and secretary—W. H. Cameron,
Chicago.
ACCIDENT EXPERIENCE OF STEAM RAILROADS IN
1937 1
ACCIDENTS occurring in the operation of steam railroads in the
United States during 1937 were responsible for 5,350 deaths (5.83 per
1U. S. Interstate Commerce Commission. Bureau of Statistics. Accident Bull. No. 106: Summary
and Analysis of Accidents on Steam Railways in the United States Subject to the Interstate Commerce
Act, Calendar Year 1937. Washington, 1938.
11G
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Federal Reserve Bank of St. Louis
117
I n d u s t r ia l A c c id e n ts a n d S a f e ty
million train-miles) and 36,692 nonfatal injuries (40 per million
train-miles), including 666 deaths (0.25 per million man-hours
worked) and 23,629 injuries (8.70 per million man-hours worked) to
employees on duty. In 1922 the total number of deaths was 6,325
and the total number of injuries 134,871, of which 1,587 deaths and
116,514 injuries were incurred by employees on duty.
The total number of persons and the number of employees on duty
killed and injured in 1936 and 1937 are shown in table 1 by type of
accident.
T able
1.— P e r s o n s
K i l l e d a n d I n ju r e d in S te a m - R a ilw a y A c c id e n ts in th e U n ite d S ta te s ,
1 9 3 6 a n d 1 9 3 7 , b y T y p e o f A c c id e n t
Total persons
Type of accident
Killed
Employees on duty
Injured
Killed
Injured
1936
1937
1936
1937
1936
1937
1936
63
133
57
119
7
702
082
553
074
58
42
48
51
7
230
237
224
229
67
127
149
124
5
5
57
9
30
277
310
1,547
1,367
119
537
498
Train-service accidents:
Coupling or uncoupling cars or locomotives..
24
Coupling or uncoupling air hose.......................
7
Operating locomotives............. ................ ...........
9
Operating hand brakes_______________ ____
16
13
Operating switches_______________________
Contact with fixed structuies______________
42
31
Getting on or off cars or locomotives_______
313
319
Accidents at highway grade crossings.______ 1,676 1, 748
Struck or run over, not at public crossings... 1, 926 ' 1,788
872
Miscellaneous__________ _________________ 883
329
157
1,135
694
310
193
3, 543
4, 780
1,086
5, 818
376
174
1,130
747
287
252
3,722
4, 996
1.089
, 009
24
15
148
165
17
41
16
114
151
329
157
1,135
694
310
157
1,696
48
181
3, 602
376
174
1,130
747
287
194
1,912
64
166
3,597
Total, train-service accidents____________ 4,897 4,808 18,045 18, 782
428
389
8, 309
8,647
Total, train and train-service accidents___ 5,174 5,118 19, 592 20,149
547
516
8,846
9,145
Train accidents:
Collisions_____ __________ ____ ____ ______
D »ailm ents.- _____________________ . . . .
Locomotive-boiler accidents__ _____ ______
Other locomotive accidents_______________
Miscellaneous____ ______ _________________
Total, train accidents___________________
12
2
8
0
Total non train (including industrial a ccidents)...
224
0
22
8
0
6
10
8
6
6
232 15,114 16, 543
Grand total, all accidents_______________ 5, 398 5, 350 34, 706 36, 692
Percent of increase or decrease in total accidents,
1936 to 1937___________________________ ____
-0.89
Accident rate per 1,000,000 train-miles__________ 6.06 5.83
Accident rate per 1,000,000 man-hours w orked...
39.0
12
2
8
9
16
0
22
21
0
21
127
22
7
8
13
0
8
1937
6
122
150 13,025
14,484
669
666 21,871
23, 629
+5.72
40.0
+8.04
-0.45
0.26
0.25
8.46
8.70
The 1937 experience, when compared with similar data for 1936,
showed a slight reduction in both the total number of deaths and
deaths to employees on duty, which was further emphasized by an
increase in the number of train-miles run (891 million in 1936 and 918
million in 1937), and in man-hours worked by employees (2,586
million in 1936 and 2,717 million in 1937).
The total nonfatal injuries, however, showed a larger increase than
the train-miles (5.72 and 3.03 percent, respectively), and the nonfatal
injuries to employees showed a larger increase than the man-hours
worked (8.04 and 5.07 percent, respectively).
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M o n th l y L a b o r R e v ie w — J a n u a r y 1 9 3 9
Table 2 shows a distribution of injuries to employees on duty in
1936 and 1937, by nature of injury, and the actual or probable num
ber of days of disability resulting from these injuries. Time losses for
permanent injuries were computed according to the standards adopted
by the International Association of Industrial Accident Boards and
Commissions.
T a b l e 2 .— I n ju r ie s to E m p lo y e e s on D u t y in A c c id e n ts in T r a in O p e r a tio n , C la s sifie d
A c c o r d in g to S e v e r ity o f I n j u r y , Y e a r s 1 9 3 6 a n d 1 9 3 7
Actual or probable number of
days’ disability
iNumoer
Nature of injury
Number of days
1936
1937
2, 013
2,206
1, 164
3
285
144
288
2,178
4
203
2,169
2,319
1,160
282
144
298
2,245
5
178
36,689
41,437
22, 415
151
, 236
4,731
3,290
128,156
238
9, 347
38, 327
41,493
21, 348
381
6,961
4,888
3,250
127, 381
277
8,074
33
18
18
18
32
25
34
59
60
46
57
55
45
8,812
252, 690
252, 380
30
29
7
1,800
9,500
11,700
4,500
1,800
3,167
1,671
4,500
50
74
184,490
40,325
318, 600
6,350
193, 700
37,185
303,050
7,900
5,250
3,690
429
3, 580
289
3,874
503
3,524
304
2,625
246
561,065
563,285
2,166
2,290
Total, temporary___________________ ____ _ . . .
8, 488
3
_________ ________________________
50
94
89
T o e... ._ _______ _____________________ _____
1
22
0
259
Permanent disability, subsequently fatal:
1937
1937
Permanent disability, nonfatal:
Loss of eye___________ _________________________
Fracture
__________ ________________________
Amputation:
Finger.
1936
1936
Temporary disability:
Electric shock or burn. _ _ ___ . . . _ _ _ _ _
_ _ _
Other burn....... ...............
...
___
D islocation.. ___ _ _ ..... . . . .
Cinder or other foreign substance in eye _ _ .
Fracture____ . _________ . . . . .
Amputation of to e .. . . . ___ . . . . . . . . .
. . . ...
Average per
injury
1
6
1
12
1
86
26
2
6
18
19
19
50
22
11
11
1
7
0
Fracture................................................................................
Amputation________________________________ ___
43
16
32
20
T o ta l.......... ................ .....................................................
99
87
40
19
SICKNESS AND NONINDUSTRIAL ACCIDENTS
AMONG RAILROAD EMPLOYEES 1
THE frequency of recorded disabilities lasting 8 calendar days or
longer from sickness and nonindustrial accidents among about 60,000
white male railroad employees was the subject of a recent study by
the United States Public Health Service. The disability data for
1U. S. Public Health Service. Frequency of Sickness and Nonindustrial Accidents Causing Disabilty
Lasting Eight Calendar Days or Longer Among 60,000 W hite Male Railroad Employees, 1930-34, In
clusive. B y William M . Gafafer. Reprint No. 1924 from the Public Health Reports. Washington, 1938.
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Federal Reserve Bank of St. Louis
I n d u s t r ia l A c c id e n ts a n d S a f e ty
119
this group of railroad workers were secured from the medical records
of sick-benefit associations of six railroads and form part of the occu
pational morbidity and mortality study of the National Health
Survey. During the years 1930-34 the 60,000 male employees aver
aged about 50 months of membership in their respective sick-benefit
organizations. For cases lasting 8 days or longer over 3 million days
of disability were recorded. The average daily percentage of em
ployees disabled was 3.7.
The sickness data do not represent the entire morbidity experience
of the group because of the special regulations governing the organiza
tions. Thus, industrial accidents are not included nor are all disabling
illnesses and nonindustrial accidents, since most of the associations
do not pay benefits for disability resulting from the “improper use of
stimulants or narcotics,” “immoral practices,” venereal disease, vol
untary self-injury, the violation of any civil law, and fighting, while
one association did not accept applicants with chronic ailments. An
age limit for membership of 45 years in four of the associations, it was
considered, might result in fewer employees in the older ages in these
groups than among railroad employees in general. For these reasons,
therefore, the sickness frequencies shown in the report are regarded as
lower than those that actually existed.
Four of the companies had company-managed relief associations,
one an association jointly managed by the company and the em
ployees, and one had group insurance. Physical examinations were
required of applicants for membership. Some form of medical service
was provided by all the railroads, and periodic examinations were
required by four, while one provided free examinations to all employees
when desired.
Disabilities were classified according to the relation of their onset
and termination to the period covered by the study, and fall logically
into three groups, i. e., those whose onset and termination in recovery
or death occurred during the study period, 1930-34, those whose onset
occurred during the study period but whose termination was unknown,
and those whose onset was prior to the study period and continued
into or beyond it. The disabilities classified in the first and second
groups were called cases and the third illnesses. In the three groups
there were respectively 30,612 cases, 1,882 cases, and 1,296 illnesses.
The days of disability reported relate only to those occurring within
the study period.
The average daily percentage of employees disabled varied, accord
ing to age group, from 1.2 at ages less than 25 years to 10.7 at ages
65 years and over, while the annual number of days of disability per
employee progressed steadily in each age group from 4.3 days at ages
less than 25 years to 39.1 days at ages 65 and over.
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120
M o n th l y L a b o r R e v ie w — J a n u a r y 1 9 3 9
T o ta l D a y s o f D is a b i l i t y , A v e r a g e D a i l y P e rc e n ta g e o f R a ilr o a d E m p lo y e e s D is a b le d , a n d
A n n u a l N u m b e r o f D a y s o f D i s a b i l i t y p e r E m p lo y e e
•
Age group
Number
personTotal days of
of
of disability years
disabil
ity
Number
of personyears of
exposure
Average
daily per
centage of
employ
ees disa
bled
Annual
number
of days of
disabil
ity per
employee
All ages__________________________________ ____
3,339,814
9,150
246,383
3.7
13.6
Less than 25 years___________________________ __
25-34 years__ ____ __________ . ___
35 -44 years_______________________ _______ . _
4.5-54 years_____ ____ ______ _______ ________ _
55-64 years________ _______________________ __ .
65 years and over______________________________
Unknown____________ ____ _____
_________
29,484
341, 505
752, 599
1,014,148
1, 033.620
163, 222
5. 236
81
936
2,062
2, 778
2,832
447
14
6.910
49,163
77,094
71, 364
37. 084
4,171
597
1.2
4.3
6.9
9.8
14.2
27.9
39.1
1.9
2.7
3.9
7.6
10.7
2.4
8.8
In the group of employees less than 25 years of age 41 percent of the
cases were of 8 to 14 days in duration. Although the number of cases
of this duration constituted the largest percentage in each age group
up to the group 65 years and over, the percentage gradually decreased
as age increased, dropping to 24 percent at ages 65 years and over.
In the latter age group the largest number of cases—28.8 percent—
lasted from 15 to 28 days, and the percentage of cases with durations
of 50 days or more, and particularly those of duration greater than 98
days, were found to increase markedly with increasing age.
There were 1,882 disabling cases that began during the study period
but whose termination was unknown. Of these cases 722 had lasted
373 days and over. To obtain the incidence of disabilities these cases
were added to the number of cases that began and ended during the
study period. Because of the high frequency of long-duration cases
in the age groups 55-64 years and 65 years and over, the effect of com
bining these two classes of cases is reflected largely in these higher age
groups. Of the 1,296 disabilities designated as illnesses which began
prior to the study period 355 continued throughout the study period.
Of this number 131 were in the 45-54 age group, 115 in the 55-64 age
group, and 6 were 65 years or older.
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Federal Reserve Bank of St. Louis
Labor Laws and Court Decisions
NATIONAL LABOR RELATIONS BOARD MAY NOT
ABROGATE UNION CONTRACTS
THE United States Supreme Court, in a divided opinion, recently
held that the National Labor Relations Board did not have power
to invalidate a contract between the Consolidated Edison Co. of
New York and the International Brotherhood of Electrical Workers,
an affiliate of the American Federation of Labor.1 The Court,
however, did hold that a public utility company primarily engaged
in furnishing electricity to residents of a city was subject to the
National Labor Relations Act.
The case arose out of a charge filed with the National Labor Rela
tions Board on May 5, 1937, by the United Electrical and Radio
Workers of America, affiliated with the Committee for Industrial
Organization, that the Consolidated Edison Co. of New York and its
affiliated companies were interfering with the right of their employees
to join a labor organization of their own choosing and further that
the company was contributing financial and other support to the
International Brotherhood of Electrical Workers, an affiliate of the
American Federation of Labor. The Board issued a complaint
and the employing companies challenged its authority on the ground
that the companies were not engaged in interstate commerce. The
request that the jurisdictional question be decided prior to the hear
ings was denied and, following the preliminary hearing before a trial
examiner, the case was heard by the Board.
The Board directed the companies to discontinue violating provi
sions of the act which restrain an employer from interfering with
or coercing employees in the exercise of their rights guaranteed by
section 7. The companies were also ordered not to discriminate in
the matter of hiring or in regard to tenure of employment or any
term or condition of employment in order to encourage or discourage
membership in any labor organization.
From the facts in the case, it appeared that the companies had
entered into agreements with the International Brotherhood of
Electrical Workers and its local unions for the recognition of the
Brotherhood as the collective-bargaining agency for those employees
— ■
•
1Consolidated,
E d is o n Co. o f N e w Y o r k , In c . v. N a tio n a l L a b o r R e la tio n s B o a rd ; In te rn a tio n a l B rotherhood
o f E le c trica l W orkers v. N a tio n a l L a b o r R e la tio n s B o a rd , 59 Sup. Ct. 206.
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121
122
M o n th l y L a b o r R e v ie v j— J a n u a r y 1 9 3 9
who were its members, and which contained various stipulations as to
hours, working conditions, wages, etc., and for arbitration in the event
of disputes. The Board found that these contracts were executed
under such circumstances that they were invalid and ordered the
companies to refrain from giving them effect. At the same time the
Board decided that the companies had not engaged in unfair labor
practices within the meaning of section 8 (2) of the act, which makes
it unlawful for an employer “to dominate or interfere with the for
mation or administration of any labor organization or contribute
financial or other support to it.”
The companies thereupon petitioned the Circuit Court of Appeals
to set aside the order, and were joined by the Brotherhood and its
locals. These labor organizations had not been parties to the pro
ceeding before the Board but intervened in the Court of Appeals as
parties aggrieved by the invalidation of their contracts. The Board
in turn asked the court to enforce the order and was supported by
the United Electrical and Radio Workers of America. The Board’s
petition was subsequently granted by the court.
Majority Opinion
The United States Supreme Court, in reviewing the case, first took
under consideration the contention of the companies that the Board
was without jurisdiction. Mr. Chief Justice Hughes, in delivering
the opinion of the Court, pointed out that although the companies
supply 3,500,000 customers in New York City and adjoining West
chester County with electrical power, it did not necessarily follow
that while these operations of the utilities were of such concern to
the people of New York, they did not also involve interstate and
foreign commerce to such a degree that the Federal Government was
entitled to intervene.
In support of this view the Court observed that the Edison Co. and
its subsidiaries supply electricity to the major railroads operatingout of New York, to the Port of New York Authority, the Holland
Tunnel, various steamship piers, telegraph and radio corporations,
and to Government agencies, including the postoffice. As to this,
the Court said that “it cannot be doubted that these activities, while
conducted within the State, are matters of Federal concern. In their
totality they rise to such a degree of importance that the fact that
they involve but a small part of the entire service rendered by the
utilities in their extensive business is immaterial in the consideration
of the existence of the Federal protective power.”
The employing companies also argued that since the State of New
York had enacted measures to protect against the interruption of
business through labor disputes, the National Labor Relations Board
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Federal Reserve Bank of St. Louis
L a b o r L a w s a n d C o u rt D e c is io n s
123
was without jurisdiction. The Court, in answer, said that the enact
ment of this State law could not override the constitutional authority
of the Federal Government, and that the State “could not add to or
detract from that authority.”
THE FAIRNESS OF THE HEARINGS
In discussing the contentions of the companies that the hearings
were unfair and that the procedure denied to them due process of
law, the Court declared that the companies had not been denied any
rights, and the Chief Justice pointed out several instances in proof.
Although the refusal to receive the testimony of two witnesses was
“unreasonable and arbitrary” and an “abuse of discretion,” the Court
said that nevertheless the companies could have asked the Court of
Appeals for leave to present additional evidence and failing to do so,
they were not denied due process of law.
As to another contention of the company that the Court of Appeals
misconceived its power to review the findings and, instead of observ
ing as to whether they were sustained by “substantial” evidence,
merely considered whether the record was “wholly barren of evidence”
to support them, the Court agreed that the statute which provided
that the findings of fact by the Board, if supported by evidence, shall
be conclusive, meant that they should be supported by substantial
evidence. It was the view of the Supreme Court, however, that the
Court of Appeals in stating that the record was not “wholly barren
of evidence” to sustain the finding of discrimination, referred to
substantial evidence.
Again, it was urged by the companies that the Board received
“remote hearsay” evidence. The Court concluded, however, that
the Board’s findings had a proper foundation. With respect to indus
trial espionage, it was asserted that the employment of “outside
investigating agencies” of any sort had been voluntarily discontinued
prior to November 1936. It was declared by the Court, however,
that the Board was entitled to bar any future use of such agencies.
In relation to the other charges of unfair labor practices, the com
panies pointed to the statement of a Mr. Carlisle at a meeting of the
employees in April 1937, when the recognition of the Brotherhood
was under discussion, that the employees were free to join any labor
organization. In this connection, the Court said that—
Despite this statement and assuming, as counsel for the company urges, that
where two independent labor organizations seek recognition it cannot be said to
be an unfair labor practice for the employer merely to express preference of one
organization over the other, by reason of the former’s announced policies, in the
absence of any attempts at intimidation or coercion, we think there was still
substantial evidence that such attempts were made in this case.
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Federal Reserve Bank of St. Louis
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M o n th l y L a b o r R e v ie w — J a n u a r y 1 9 3 9
DISCUSSION OF CONTRACTUAL RELATIONSHIP
The Court next discussed the order of the Board holding the con
tracts with the Brotherhood invalid in the light of several considera
tions. The first was that the Brotherhood and its locals were labor
organizations independently established as affiliates of the American
Federation of Labor and not under control of the employing com
panies. Another consideration was that the contracts recognized the
right of employees to bargain collectively, and considered the Brother
hood as the collective-bargaining agency, and further that the
Brotherhood agreed not to intimidate or coerce employees into join
ing and not to solicit membership on the time or property of the
employers. The third consideration was that the contracts contained
provisions with regard to hours, working conditions, wages, etc., and
against strikes or lockouts as well as for the adjustment and arbitra
tion of labor disputes.
The Brotherhood contended that it and its locals were indispensable
parties to the contract and that in the absence of notice to appear,
the Board had no authority to invalidate the contracts. The Court
agreed with this contention, and stated that the Brotherhood and its
locals were entitled to notice and hearing before the contracts could
be set aside, since they had valuable and beneficial interests in them.
It was urged by the Board in this connection that the unions had
availed themselves of the opportunity to petition for review of the
case in the early stages of the proceedings, and that due process did
not require an opportunity to be heard before judgment, if defenses
may be presented upon appeal. In refusing to accept this view, the
Court pointed out that this rule assumes that the appellate review does
give an opportunity to present all available defenses, including lack of
proper notice to justify the judgment or the order complained of.
Apart from the question of notice to the unions, it was shown by
the Court that at the hearings before the Board both the companies
and the unions contended that the Board was without authority to
invalidate the contract. It was argued by the Board, however, that
the contracts were necessarily in issue because of the charge of unfair
labor practices made against the companies. This contention was
without substance, the Court said. The companies amended their
answer by stating that the making of the contracts had rendered the
proceeding moot, and the Board necessarily regarded this action as
putting the contracts in issue. The Court, however, did not consider
that this action had that result, but declared that “we think that the
fair construction of the position thus taken on the last day of the
hearings was entirely consistent with the view that the validity of
the contracts had not been, and was not, in issue.’’
It was observed in this connection that the National Labor Rela
tions Act gave no express authority to the Board to invalidate con
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Federal Reserve Bank of St. Louis
L a b o r L a w s a n d C o u rt D e c is io n s
125
tracts with independent labor organizations. “That authority,” the
Court said, “if it exists, must rest upon the provisions of section 10 (c).”
This section authorizes the Board, when it has found the employer
guilty of unfair labor practices, to require him to stop such practices
“and to take such affirmative action, including reinstatement of em
ployees with or without back pay, as will effectuate the policies of
this act.” The Court declared that this authority does not confer a
punitive jurisdiction enabling the Board to inflict any penalty upon
the employer because he is engaged in unfair labor practices, even
though the Board is of the opinion that “the policies of the act might
be effectuated by such an order.”
The majority opinion made it clear that the 80 percent of the em
ployees who were members of the Brotherhood and its locals had the
right to join labor organizations and to bargain collectively through
representatives of their own choosing. “They had the right,” the
Court said, “to choose the Brotherhood as their representative for
collective bargaining and to have contracts made as the result of that
bargaining.” Continuing, it was noted by the Court that “nothing
that the employers had done deprived them of that right. Nor did
the contracts make the Brotherhood and its locals exclusive repre
sentatives for collective bargaining.” “On this point the contracts
speak for themselves,” the Court opined, and “they simply constitute
the Brotherhood the collective bargaining agency for those employees
who are its members.”
It was insisted by the Board, however, that the contracts were
invalid because they were made during the pendency of the proceed
ing. The Court declared that while the effect of the pendency would
extend to the practices of the employers to which the complaint was
addressed, it would not “reach so far as to suspend the right of the
employees to self-organization or preclude the Brotherhood as an
independent organization chosen by its members from making fair
contracts on their behalf.”
Finally, the Chief Justice said that the Board, instead of proving
that membership in the Brotherhood was due to unfair labor prac
tices, left this merely as a matter of guesswork. “The main conten
tion of the Board,” he asserted, “is that the contracts were the fruit
of the unfair labor practices of the employers; that they were ‘simply
a device to consummate and perpetuate’ the companies’ illegal con
duct and constituted its culmination.” The Court was of the opinion
that this conclusion was entirely too broad to be sustained, and
therefore concluded that the Board was without authority to require
the Consolidated Edison Co. and its affiliates to desist from giving
effect to the contracts with the International Brotherhood of Electrical
Workers.
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Dissenting Opinions
Mr. Justices Butler and McReynolds dissented on the ground that
the entire order should have been set aside. In a written opinion byMr. Justice Butler it was agreed that the Board was without authority
to require employers to cease giving effect to the contracts made with
the Brotherhood, and it was contended that the Board was without
jurisdiction as the employers were engaged solely in intrastate activ
ities, and therefore outside the purview of the act. The minority
argued that the case was not different from that of S c h e c h te r C o r p . v.
U n i t e d S ta t e s 2 (295 U. S. 495), and C a r te r v. C a r te r C o a l C o .3 (298 U. S.
238), previously decided by the Court. In those cases, as here, Mr.
Justice Butler said, “the activities of the employers and their em
ployees were exclusively local.” In referring to the New York. State
Labor Relations Act as being in substance precisely the same as the
National Labor Relations Act, the minority opinion declared that the
State’s interest, purpose, and ability to safeguard against possible
interruption of production and service by labor disputes are not less
than those of the Federal Government. It was said that “the State’s
need of continuous service is immediate, while the effect of inter
ruption on interstate or foreign commerce would be mediate, indirect,
and relatively remote.”
The dissenting opinion declared, finally, that the right of the States,
consistently with national policy and law, to exert freely the powers
safeguarded to them by the Federal Constitution was essential to the
preservation of the Government. In support of this declaration,
the opinion stated that—
Asseveration of need to uphold our dual form of government and the safeguards
set for protection of the States and the liberties of the people against unauthorized
exertion of Federal power, does not assure adherence to, or conceal failure to
discharge, duty to support the Constitution.
A separate opinion was delivered by Mr. Justice Reed, concurred
in by Mr. Justice Black. These justices contended that the pro
vision of the order of the Board requiring the Edison companies to
cease from giving effect to the contracts was proper. The evidence
showed, the opinion pointed out, that a “consistent effort” by the
officers and foremen of the Edison Co. and its affiliates had been
made to further the development of the Brotherhood by various acts
of the company.
They further declared that the evidence was clearly sufficient to
support the conclusion that the companies entered into the contracts
as a part of a coercive plan to interfere “with the self-organization of
their employees,” and that this justified “the Board’s prohibition
against giving effect to the contracts” between the company and the
Brotherhood.
2 See analysis of decision in M onthly Labor Review, June 1935, p. 1466.
3 Idem, July 1936, p. 68.
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RECENT COURT DECISIONS OF INTEREST TO LABOR
Railroad Retirement Acts as Applied to State-Owned Railroad
THE State of California was not entitled to an injunction to restrain
the enforcement against a State-owned railroad of provisions of the
Federal Railroad Retirement Acts and the Federal Carriers Taxing
Act, according to a decision of the United States Supreme Court.
Relief was denied solely on the ground of want of equity, as “there
was adequate opportunity to test at law the applicability and con
stitutionality of the Acts of Congress.”
The Court declared that the alleged threat of the Railroad Retire
ment Board to require the railroad to gather and keep records of its
employees did not expose it to irreparable injury, as the Board is not
empowered to enforce its regulations except by suit, and in the event
of litigation ample opportunity would be afforded the State to defend
on the ground that the railroad is not subject to the Railroad Retire
ment Act. With regard to the payment of taxes required by the Federal
Carriers Taxing Act, the Court was of the opinion that such payment
also would not expose the State to irreparable injury, since the amount
paid could be recovered in an action at law. In response to the alle
gation that in order to raise the money to pay the tax, it would be
necessary to adjust the tariffs of the railroad, the Court said that
“mere inconvenience to a taxpayer in raising money with which to
pay taxes is not uncommon, and is not a special circumstance which
entitles one to resort to a suit for an injunction in order to test the
validity or applicability of the tax.” (S ta te o f C a l i f o r n i a v. L a t i m e r
e t a l ., 59 Sup. Ct. 166.
Compensation Denied Because of Disobedience of Instructions
In a recent case decided by the Supreme Court of North Carolina
it was held that the death of a painter by drowning was not com
pensable, since the death did not “arise out of the employment.”
The painter was employed by the State highway and public works
commissions and while engaged in painting a bridge, he dropped his
paint brush into the water. The foreman told him not to go into the
water after it, but in violation of this instruction he went into the
river for the purpose of recovering the paint brush and was drowned.
The industrial commission found that the deceased had left the
usual scope of his employment and was doing something contrary to
the command of his foreman and superior. The commission there
fore concluded that his death did not arise out of the employment,
and denied compensation. The supreme court upheld the commis
sion, declaring that “there was evidence to support the findings of
fact by the industrial commission,” and agreeing with the conclusion
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of the commission that the injury did not arise out of the employ
ment. (Morrow v. State Highway & Public Works Commission, 199
S. E. 265.)
Determination That Electr ic Railroad Is not "Interurban” Upheld
The United States Supreme Court in a recent decision upheld a
determination of the Interstate Commerce Commission that an elec
tric railroad was not an “interurban” electric railway within the pro
visions of the Railway Labor Act excepting interurban electric rail
ways unless operating as a part of a general steam-railroad system of
transportation. The Court stated that such a determination is reviewable, but the extent of the review is limited to the question of
whether the Commission in arriving at its determination after hear
ing departed from the applicable rules of law, and to the question of
whether its finding had a basis in substantial evidence or was arbitrary
and capricious.
It was pointed out by the Court that as Congress was free to estab
lish categories which should be excepted from the act, Congress could
bring to its aid an administrative agency “to determine the question
of fact whether a particular railroad fell within the exception, and
Congress could make that factual determination, after hearing and
evidence, conclusive.” As the evidence disclosed that over 81 percent
of the line was located on privately owned right-of-way, that the
bulk of its revenue was received from handling freight, and that a
large portion of the freight handled was interchanged with other
carriers, the Court declared that “it cannot be said from this evidence,
and the related facts summarized in the Commission’s report, that
the Commission’s determination lacked support or was arbitrary or
capricious.” {Shields v. Utah Idaho Central Railroad Co., 59 Sup.
Ct. 160.)
Injury at Union Meeting not Compensable
An injury received by a machine operator while attending a union
meeting on the premises of her employer was held by the Second
District Court of Appeal of California not to be compensable as
“arising out of and occurring in the course of her employment.”
The employee had designated the union to represent her in negoti
ations with her employer under the National Labor Relations Act, and
permission was granted the union to hold meetings on the premises,
with the understanding that the employer would be excluded from
the meeting.
In deciding that the employee was not entitled to compensation,
the court declared that an industrial injury is compensable only
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when received as a natural incident of his work, and while he is doing
the duty he was employed to perform. At the time of the injury,
the employee “was not acting for her employer nor engaged in his
service.” Instead, she was “attending a meeting of an organization
of which she was a member and the purposes of which were clearly
for her own interests and not necessarily in any way for the benefit
of her employer.” Under the National Labor Relations Act, the
employer “was by law prohibited from interfering with her actions,”
and the court therefore concluded that at the time of her injury
the employee “was engaged in an activity clearly beyond the scope
of her employment.” (.Pacific Indemnity Co. v. Industrial Accident
Commission, 81 Pac. (2d) 572.)
Compensation for Blood Poisoning Resulting From Pimple
A teamster whose arm became infected with blood poisoning as a
result of a pimple which appeared on his forearm shortly after he
had trimmed the horses’ manes was entitled to compensation, accord
ing to a decision of the Supreme Court of Utah. Part of the duties
of the injured employee was to curry the horses, and occasionally
to roach their manes, which consisted of trimming them with sheep
shears. In doing this, pieces of horsehair would fall and cover his
hand, arm, face, and clothing. The teamster wore a woolen sweater
while at work and particles of the horsehair fell upon and even pene
trated the sweater. He discovered a pimple on his forearm with
horsehair the color of his team’s manes in the center, and inflammation
spread from the pimple and resulted in blood poisoning. The indus
trial commission found that the employee was not injured by an acci
dent arising out of and in the course of his employment, and refused
to award compensation.
In holding that compensation should have been awarded, the court
declared that an order of the industrial commission which is against
the undisputed competent evidence cannot be upheld. The court
observed that there was unmistakable evidence showing that the germ
which caused the infection was prevalent around barns and stables
and did not come from human beings. In this connection the court
said: “The weakness of the imputation of some possible cause of the
incision, other than the horsehair, lies not only in the lack of evidence
to support it but in the positive evidence of the presence in the wound
of an agency competent to produce it, and in surroundings of proved
general prevalence of the germ.” {Adams v. Industrial Commission
of Utah, 82 Pac. (2d) 693.)
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FIFTH NATIONAL CONFERENCE ON LABOR
LEGISLATION
DISCUSSION of the administration of the Fair Labor Standards
Act of 1938 was an important item on the agenda of the Fifth National
Conference on Labor Legislation held in Washington, D. C., Novem
ber 14 to 16, 1938. Conferences have been convened by the Secretary
of Labor for five successive years in order to give Federal and State
departments of labor and persons interested in the work of these
departments an opportunity to discuss their mutual problems. The
recent session was one of particular significance, as the Wage and
Hour Division of the United States Department of Labor was seeking
to work out a basis for cooperation with the States for enforcement of
the new wage and hour law.
In all, 10 committee reports were made to the members of the con
ference and 11 resolutions were adopted. Of the resolutions, nine,
presented by the resolutions committee, covering child labor, appren
ticeship, State wage and hour legislation, industrial home work,
workmen’s compensation, wage collection, conferences of adminis
trative officials, State labor departments, and freight rate differen
tials are here reproduced in full. The two remaining resolutions were
presented by delegates. They provided for cooperation between
State departments of labor and the Wage and Hour Division of the
United States Department of Labor according to a plan outlined by
the Administrator of the wage and hour law; and expressed the
satisfaction of the States with the results of the conferences held and
voted to make them annual events in future.
Child labor
Whereas Federal child-labor legislation covers only a part of the child labor now
existing in the United States; therefore be it
Resolved, That the Fifth National Conference on Labor Legislation recommend
supplemental State legislation to perfect the cooperation of the States in the
administration of the child-labor provisions of the Fair Labor Standards Act and
to raise all State child-labor standards to those of the Fair Labor Standards Act;
and be it further
Resolved, That the Fifth National Conference on Labor Legislation urge that
every effort be made to complete the ratification of the pending Federal Child
Labor Amendment.
Apprenticeship
Whereas apprenticeship is vital to youth, to management and to labor; and
Whereas all groups concerned have recognized the significance of apprenticeship
to them; and
Whereas standards for the training of apprentices set up by the Federal Govern
ment can best be effectuated by legislation giving State departments of labor
authority in this field; therefore be it
Resolved, That the Fifth National Conference on Labor Legislation strongly
urge the States to enact legislation placing the administration of apprenticeship
labor standards within their labor departments; and be it further
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Resolved, That pending such legislation, each commissioner of labor appoint a
representative apprenticeship council, consisting of an equal number of repre
sentatives of workers and management and a representative each from other agen
cies having an interest in apprenticeship, to promote the development of sound
apprenticeship and to perform the service called for in the administration of
apprenticeship under the Fair Labor Standards Act and the apprenticeship regu
lations of other Federal agencies.
State wage and hour legislation
Whereas the Fair Labor Standards Act of 1938 provides minimum wages and
basic maximum hours for workers employed in interstate industries; and
Whereas most workers employed in intrastate industries, in which many of the
worst abuses are known to exist, are without similar protection; therefore be it
Resolved, That the Fifth National Conference on Labor Legislation recommend
and urge prompt State action to extend the benefits provided by the Federal law
to all workers, either by amendment to existing statutes or by the introduction of
new legislation; and be it further
Resolved, That this conference express its appreciation to the Secretary of Labor
for appointing a committee of State labor-law administrators and representatives of
organized labor to prepare suggested language for a bill adapting the wage and
hour provisions of the Federal act for the use of States taking steps to enact wage
and hour legislation.
Industrial home work
Whereas home work is a method of industrial production which exploits the
workers engaged therein, competes unfairly with factory production, and tends
to evade wage, hour, and child-labor regulations; and
Whereas this and other conferences of State labor-law administrators and of
organized labor have gone on record repeatedly urging the complete elimination
of the industrial home-work practice; therefore be it
Resolved, That the Fifth National Conference on Labor Legislation express its
gratification that the Fair Labor Standards Act has been interpreted to apply to
industrial home work and recommend that each wage order issued thereunder
prohibit industrial home work in the industry involved, as a means of safeguarding
the wage standards established; and be it further
Resolved, That this conference recommend and urge that all States, not yet
having adequate legislation looking toward the ultimate elimination of the indus
trial home-work practice, take immediate steps to enact such legislation to be
administered by the State departments of labor.
Workmen’s compensation
Whereas the benefits of workmen’s compensation acts are not now available to
a large number of workers, due to limited scope of application, as well as to elective
feature of many acts; and
Whereas it seems desirable that workmen’s compensation should be afforded
at the lowest possible cost and benefits made available with the least possible
amount of litigation; and
Whereas the extension of workmen’s compensation benefits for disabilities due
to occupational diseases is essential for the more complete protection of industrial
workers; therefore be it
Resolved, That the Fifth National Conference on Labor Legislation strongly
urge the States to make workmen’s compensation coverage mandatory, and to
extend its benefits to all workers and all employments, public and private; and
be it further
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Resolved, That this Conference recommend exclusive State funds as the best
and most economical medium for providing workmen’s compensation insurance;
and be it further
Resolved, That the Conference further recommend the inclusion of all occupa
tional diseases or disabilities under workmen’s compensation acts.
Wage collection
Whereas the failure to pay wages earned continues to be a serious abuse,
particularly in States where labor departments are not equipped to enforce such
payments; and
Whereas a worker’s right to his wages is indisputable and public opinion con
demns the employer who defrauds his employees or who, lacking the ability to
pay, continues to employ workers; and
Whereas the experience of State labor departments in 11 States has demon
strated the effectiveness of properly drafted wage-payment and wage-collection
laws; therefore be it
Resolved, That the Fifth National Conference on Labor Legislation go on record
as urging the adoption by all States that do not yet have this legislation of (1)
a law requiring all employers to pay wages in full on regular, specified pay days;
and (2) a law authorizing the labor commissioner to assist workers in collecting
valid unpaid wage claims, and to take assignments of such claims for court
collection.
Conferences of administrative officials
Whereas small working conferences of officials engaged in administering differ
ent types of labor laws have been extremely helpful in promoting sound and
uniform methods of administration; and
Whereas such conferences have been held for officials engaged in administering
industrial home work, minimum wage, and industrial health and safety laws;
therefore be it
Resolved, That the Fifth National Conference on Labor Legislation urge the
extension of the practice to new fields, and suggests the holding in the near future
of such a conference for officials engaged in wage collection.
State labor departments
Whereas division of responsibility for the administration of tábor laws and laws
designed to protect and promote the welfare of workers jeopardizes the effective
ness of enforcement and is more costly; and
Whereas centralization of responsibility within a single administrative agency
prevents unnecessary duplication, tends to promote efficient and coordinated
enforcement practices and methods, and is conducive of a sound and more con
sistent policy with respect to labor problems; therefore be it
Resolved, That the Fifth National Conference on Labor Legislation reaffirm its
belief in the importance of coordinating the administration of such laws within a
single department of labor of the State or Federal Governments, as the case may
be; and be it further
Resolved, That in furtherance of centralized administration of laws for the pro
tection of workers, this conference recommend that industrial hygiene activities
be centered in the agency of the State which administers labor laws, and that any
funds appropriated by the Federal Government for assistance in this field be
made available to the State labor departments, meeting suitable standards as to
organization, effectiveness, and program; and be it further
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Resolved, That this Conference stress the necessity of appropriations for labor
departments, both State and Federal, which are adequate and commensurate
with their duties and responsibilities.
Freight-rate differentials
Resolved, That the United States Department of Labor be asked to appoint a
committee to study the effect on wage earners of the alleged inequalities in freight
rates for the shipment of manufactured goods.
OREGON ANTIPICKETING LAW
IN THE general election of, November 8, 1938, the people of Oregon
approved an initiative petition which regulates the rights of employees
in labor controversies. Measures of a somewhat similar nature were
proposed but defeated by the electorate in California and Washington.
Opponents of the measure contend that the law is in conflict with the
National Labor Relations Act and the Norris-LaGuardia anti-injunc
tion law, as well as with recent decisions of the Supreme Court of
the United States.
The new Oregon law prohibits picketing in controversies which
are not strictly within the purview of the term “labor dispute.” A
labor dispute, as defined by the act, includes “only an actual bona
fide controversy” concerning matters directly pertaining to wages,
hours, or working conditions of the employees of a particular employer
directly involved in the controversy. Also, the dispute must be be
tween an employer and the majority of his employees. A controversy
between rival labor unions, or a dispute involving demands for union
recognition, is not classed as a labor dispute under the act.
Picketing is permitted whenever a bona fide labor dispute exists,
but limitations have been placed on this right in the case of the
“lawful buying, selling, transporting, receiving, delivering, manufac
turing, harvesting, processing, handling, or marketing of any agricul
tural or other products.” Boycotting of any employer not directly
involved as a party to a labor dispute is prohibited, and no person
or organization may “by any direct or indirect means” prevent any
person from working for an employer.
The law also provides that it shall be unlawful for an organization
named as a collective-bargaining agency to make any charge for dues,
etc., that will create a fund in excess of the ordinary and legitimate
requirements of such organization. The organization must also keep
accurate books, itemizing all receipts and expenditures, and any
member shall be entitled to inspect the books of the organization
and to have an accounting of all money and property.
In the enforcement of the new law, the Oregon Legislature has con
ferred upon the circuit courts of the State the power to issue injunc
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tions and other orders. A person violating any provision of the law
shall be deemed guilty of a misdemeanor, and upon conviction shall
be punished according to the law of the State.
The text of the law follows:
Section 1 . Definition of labor dispute.— Whenever in any statute or other law
of this State the term “labor dispute” is used, such term is hereby defined for all
purposes to mean and include only an actual bona fide controversy in which
the disputants stand in proximate relations of employer and the majority of his
or its employees and which directly concerns matters directly pertaining to
wages, hours, or working conditions of the employees of the particular employer
directly involved in such controversy. Disputes between organizations or groups
of employees as to which shall act for the employees in dealing with the employer
shall not be classed as labor disputes, and the refusal of an employer to deal with
either party to any such jurisdictional controversy shall not operate to make the
dispute a labor dispute within the meaning of this act.
Sec. 2. Restrictions on picketing.—It shall be unlawful for any person, persons,
association, or organization to obstruct, or attempt to obstruct or prevent, the
lawful buying, selling, transporting, receiving, delivering, manufacturing, harvest
ing, processing, handling, or marketing, of any agricultural or other products.
Sec. 3. Unlawful picketing.— It shall be unlawful for any person, persons, asso
ciation, or organization, to picket or patrol, or post pickets or patrols, in or near
the premises or property owned, occupied, controlled, or used by an employer or
employers unless there is an actual bona fide existing labor dispute between said
employer or employers and his or their employees. It shall also be unlawful to
boycott directly or indirectly any employer, or the business of such employer, not
directly involved as a party in a labor dispute.
S ec. 4. Limitation of union dues.—It shall be unlawful for any organization,
association, or person, legally authorized to act as collective-bargaining agent or
representative of laboring people, to make any charge, or exaction for initiation
fees, dues, fines, or other exactions, which will create a fund in excess of the legiti
mate requirements of such organization, association, or person, in carrying out
the lawful purpose or activities of such organization, association, or person. Every
such organization, association, and person shall keep accurate books itemizing
all receipts and expenditures and the purpose of such expenditures. Any members
of any labor organization or association shall be entitled at all reasonable times
to inspect the books, records, and accounts of such association, or organization,
or any agent or representative thereof, and to have an accounting of all money
and property thereof.
S ec. 5. Prevention of employment.— It shall be unlawful for any association,
organization, or person by any direct or indirect means to prevent, hinder, or
molest any person from seeking to engage or engaging his services to any person,
firm, corporation, or association desiring to employ him.
Sec. 6. Injunctions.— The circuit courts of this State, and the judges thereof,
shall have full power, authority, and jurisdiction to enforce this act, including full
power to issue restraining orders and temporary and permanent injunctions, and
such other and further orders as may be necessary or appropriate to carry out
and enforce each and every provision of this act..
Sec. 7. Violations.— Any person who shall violate any of the provisions of this
act shall be deemed guilty of a misdemeanor, and, upon conviction thereof, shall
be punished accordingly.
Sec. 8. Repeal.— All acts and parts of acts in conflict with this act are hereby
repealed.
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NATIONALIZATION OF COAL-MINING RIGHTS IN
GREAT BRITAIN, 1938
COAL mines in Great Britain are placed under Government control
by the terms of the Coal Act, 1938, which was approved on July 29.
This was accomplished by the purchase of royalties by the Govern
ment. In this way the Government assumes control of mines but
the actual operation of the properties will continue to be carried on
by companies which lease the mines. Provision is made for establish
ment of a Coal Commission empowered to reduce the number of
mines in the interest of efficiency and to compensate existing owners
of coal royalties for the acquisition of their interests by the Govern
ment. As regards the importance of this law to labor the London
Economist stated that “None of those associated with the industry
can prosper in the future unless determined and wholehearted efforts
are made without delay to introduce a much greater measure of
economic efficiency than hitherto into the organization of British
coal mining.” 1
This new law is the latest in a series designed to stabilize the coal
industry. Introduction of the reforms under the 1938 legislation will
be facilitated by the central selling schemes provided under the 1930
law giving support to the price structure of the coal industry. The
selling schemes are among the more important provisions of earlier
legislation that have been retained, but some sections of these laws
have been either repealed or superseded by the terms of the 1938
statute.
The Coal Commission created to administer this law is a body cor
porate with perpetual succession and power to hold land without
license in mortmain. The holdings of the Commission may be ad
ministered in such way as its members consider best for promoting
the interests, efficiency, and better organization of the coal industry.
Leases must be granted for ordinary coal-mining operations, and the
only m ining that the Commission may itself carry on is restricted to
prospecting. On matters affecting the national interest, including
safety, the Board of Trade may give the Commission general directions
as to the exercise of its functions.
Duties formerly performed by the Coal Mines Reorganization Com
mission constituted by the Coal Mines Act, 1930, are transferred to
the newly organized Coal Commission.
In cases where the Coal Commission finds that the number of sep
arate mine undertakings under lease in any area is so great as to be
detrimental to the economical and efficient working, treatment, or dis
position of the product, it is required to make an effort to reduce the
i Great Britain, Laws, 1 and 2 Geo. 6, ch. 52, Coal Act, 1938; The Economist (London), July 9,1938; and
reports from Foreign Service Officers of the United States in London, Herschel V. Johnson, and Douglas
Jenkins.
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number of such undertakings. Amalgamations may not be given final
effect without approval of Parliament.
Land ownership and mining rights are held by different groups in
Great Britain. Under the 1938 law the Government has not national
ized the mine lands, but has purchased the mining rights by providing
compensation to the owners of the mining rights for the loss of royal
ties which they formerly received from the operators who leased the
properties.
A special arbitration board fixed the amount of remuneration to be
paid to owners of royalties at £66,450,000, and this sum was written
into the law as the amount of compensation to be apportioned among
royalty owners. The Central Valuation Board established under the
act is required to establish valuation regions and to allocate to each the
proportion of the total payment for the purchase of royalties to which
the respective regions are entitled. Each valuation region will have
a regional valuation board to fix the value of individual properties
within its jurisdiction.
The valuation of mines for the purpose of this law is the value as of
January 1 , 1939. The vesting date, i. e., the time when the mines
pass from private to governmental control, is July 1 , 1942. In the
period between these two dates, when it is anticipated that the process
of valuation will be completed, each owner of royalties will be in the
same position as the owner of land which is under contract for sale.
The value of a holding is defined as the amount it might have brought
on the open market at the time, if the existing owners wished to sell.
All sums received by the Coal Commission must be placed in a
special fund and all payments by the Commission are to be made out
of that fund. A reserve fund is required to be established each year
after the accounts have been balanced. Sums in excess of the reserve
requirements may be used to redeem debts incurred under the law. If
the estimated surplus is likely to exceed requirements in future years,
the Commission is empowered to reduce the rents of lessees operating
mines where the work is more onerous than the average for lessees
working under similar conditions.
The Commission may borrow money and create and issue stock for
the purpose of raising funds. Payment of principal and interest on
any loan of the Commission may be guaranteed by the Treasury.
A section of the law deals with the use of land for the benefit of
workpeople employed in or about coal mines. It continues the pro
visions of earlier legislation by conferring the right to use and occupy
lands for buildings to house facilities such as baths and rooms for
drying clothes.
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MODIFICATION OF FRENCH 40-HOUR LAW 1
THE Daladier-Reynaud decree-laws for the economic rehabilitation
of France were issued November 12, 1938. The report submitting
these decrees to the President of the Republic which dealt with the
financial and economic problems of the country states that although
the social laws of 1936 2 have marked an appreciable progress for the
working classes, the experience of more than 2 years has shown the
necessity of modification. The stated objectives of the new laws,
“within the framework established by the laws of June 1936”, are to
increase production, to insure respect for the social laws, and to im
prove the material condition of the workers. The Government
received a vote of confidence on the recovery program on December
10, 1938.
For the attainment of the primary objective—increased production—
the most important measure, and one judged to be indispensable,
relates to the duration of work. Article 1 of this decree stipulates
that “the legal duration of work for all enterprises in France remains
fixed at 40 hours a week”, but Article 2 provides that “by reason of
the gravity of the economic situation”, for a period of 3 years, the
workweek is to be increased from 5 to 6 days, and heads of establish
ments are authorized to require the extra hours necessary to do the
work on hand, up to a maximum of 50 hours, merely upon notifying
the labor inspector. Extensions of overtime above the 50 hours may
be requested in sections of 40 hours at a time and if not refused by the
authorities within 10 days, the extension may be considered as
accepted.
The decree provides for overtime pay as follows: 10 percent increase
for the first 250 hours within 1 year in establishments employing
more than 50 persons and from 5 to 10 percent in others; 15 percent in
all establishments up to 400 hours; and 25 percent thereafter.
The employer must pay a 10-percent tax on profits resulting from
overtime.
All provisions of collective agreements, and of laws and regulations,
which diminish the output of enterprises are voided by the decree.
A second decree provides that the paid vacations may, at the order
of the Minister of Labor or the Prefect, be spread out, or rotated in
order to avoid the simultaneous shutting down of all plants of the same
branch of commerce or industry in the same region. The purpose of
this measure, it is pointed out, is not only to promote continuity in
production, but also to prevent overcrowding on’railroads and in vaca
tion resorts.
1 Data are from reports of Edwin C. Wilson, Charge d ’Affaires ad interim, Paris, dated November 25
and 26; and Journal Officiel (Paris), November 12 and 13,1938.
2 See M onthly Labor Review, September 1936 (p. 621).
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138
M o n th l y L a b o r R e v ie w — J a n u a r y 1 9 3 9
The third and fourth decrees deal with infractions of the laws and
regulations regarding the duration of work by employers and em
ployees.
The fifth decree is designed to introduce improvements in the ex
isting procedures of conciliation and arbitration, as established by
the laws of December 31, 1936, and March 4, 1938, for the settlement
of labor disputes, which procedures, it is stated, have already given
the most favorable effects.
The sixth decree deals with the status of employees’ delegates, the
election of delegates concerned with the security of workmen in mines,
and union rights of professional groups. The seventh decree provides
funds for the occupational classification of the unemployed with a
view to securing skilled workers, especially for armaments, and to
spread employment. The eighth decree provides that an additional
200 million francs shall be appropriated annually to increase the
bonuses and allowances given to large families in order to stimulate
a higher birth rate. These three decrees are similar in purpose,
inasmuch as they provide benefits to the workmen to offset the in
crease in hours and the penalties for refusal to work overtime, etc.
The ninth and final decree of the “social measures,” with its accom
panying regulations, introduces into the railroads new conditions of
work along the lines of the modifications of the 40-hour week being
applied to other industries, but with other changes which the expe
rience of the nationalization of railroads and the special character of
the railroads as distinct from other enterprises, have suggested as
expedient.
The report accompanying the text of the decree-laws also stresses
the need for increased production, which is essential to financial
recovery, and greater labor efficiency. It particularly advocates in
this connection the extension of industrial standardization (n o r m a l i s a
t i o n ,). It further recommends the creation of an Institut de Conjoncture for the purpose of collecting and diffusing information of an
economic character, operating independently of the general statistical
office and complementing its work. On the basis of these recom
mendations the new act provides for the creation of an interminis
terial commission for the control of industrial standardization opera
tions, and outlines the functions of this commission. It also provides
for the creation of an Institut de Conjone ture, associated with the
Ministry of National Economy but enjoying civil and financial
autonomy. Its duties are to be as follows: The study of the evolu
tion of the economic situation in France and abroad by means of
statistical data, and the expression of opinions in regard to future
developments in this field; the investigation of economic problems
and particularly of those relating to domestic and foreign economic
policy; the information of public bodies, economic organizations, and
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L a b o r L a w s a n d C o u r t D e c is io n s
139
private individuals on questions pertaining to national economy, and
the promotion of economic sciences; official French representation at
international congresses on economic matters. The decree-law
requires, under penalty, the heads of industrial enterprises to furnish
the Institut de Conjoncture with any data, except those relating
to profits, which may be required to throw light on economic condi
tions. Such information is to be considered as confidential and may
be published only if it is of a general and impersonal statistical nature,
covering a branch of industry or trade, or a specific economic region.
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Industrial Disputes
TREND OF STRIKES
PRELIMINARY estimates indicate that there were only about 85
percent as many strikes in November 1938 as in the preceding month.
Also, there were only 80 percent as many workers involved and about
65 percent as many man-days of idleness because of strikes in Novem
ber as in October. There were no extremely large strikes in Novem
ber, the largest in terms of number of workers involved being the
short stoppages at the Plymouth plant of the Chrysler Corporation
and at the Chevrolet gear and axle plant, both in Detroit.
Trend of Strikes, 1933 to November 1938 1
Workers involved in
strikes
Number of strikes
Year and month
Con
tinued
from
preced
ing
month
1933.
1934.
1935.
1936.
1937.
Begin
ning in
month
or year
In prog
ress dur Ended
in
ing
month month
In ef
fect at
end of
month
1,695
1,856
2,014
2,172
4,740
Begin
ning in
month
or year
Man-days
idle dur
In prog ing month
or year
ress dur
ing month
1,168,272
1,466, 695
1,117, 213
788,648
1,860, 621
16,872,128
19,591,949
15,456, 337
13,901,956
28,424,857
1937
Janu ary...
February..
March___
April..........
M ay..........
June_____
July........ .
August___
September.
October__
November.
December.
January____
February___
March_____
April_______
M ay_______
June..... .........
July........ .
August_____
Septem ber...
October i___
November t_.
100
139
146
250
273
330
358
297
295
263
205
202
120
116
124
154
162
158
135
134
126
115
135
171
211
614
535
604
610
472
449
361
320
262
131
151
175
239
242
257
192
175
207
176
220
185
271
350
760
785
877
940
830
746
656
583
467
333
132
204
510
512
547
582
533
451
393
378
265
213
271
291
363
396
419
350
310
341
302
335
320
155
167
209
234
261
215
176
215
187
200
195
139
146
250
273
330
358
297
295
263
205
202
120
108,621
99,335
290,324
221, 572
325,499
281,478
143, 678
143,033
88,967
67,242
68, 929
21, 943
214,268
226,329
358,155
394,178
445,170
474,954
353, 682
238,828
160, 241
127,109
118,632
60,518
2,720,281
1,491,268
3,288,979
3,377,223
2,982,735
4,998,408
3,007,819
2, 270,380
1,449,948
1,181,914
981,697
674, 205
116
124
154
162
158
135
134
126
115
135
125
34,865
52, 307
52,621
78,278
80,753
51,045
46, 634
45,048
90,887
50.000
40.000
55,386
76,419
101,275
107,965
120,820
91,392
78, 725
74,228
123, 772
470,138
503,875
737,455
791,994
1,122,509
805, 664
694,712
748,808
905,149
900.000
575.000
100,000
65, 000
fJ i n w ^ StluL°iv i f P-wer th?n ®worker,s. or lasting less than 1 day are not included in this table nor in the
Notlces °r leads regarding strikes are obtained by the Bureau from more than 650 daily
papers, labor papers, and trade journals, as well as from all Government labor boards. Fetters are written
î°
tlvf
pautles m the disputes asking for detailed and authentic information. Since answers
K
^ been,received, the figures given for the late months are not final. This
estimates
wl^b regard to figures for the last 2 months, and these should be considered as preliminary
140
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Federal Reserve Bank of St. Louis
141
Industrial Disputes
As compared with November a year ago the figures for November
1938 indicate that there were only about 70 percent as many strikes,
58 percent as many workers involved, and 59 percent as many mandays of idleness.
The figures given in the preceding table for October and November
are preliminary estimates, based on newspaper reports and other
information available as this_ goes to press. An analysis of strikes in
each of these months, based on^detailed and verified information, will
appear in subsequent issues of the Monthly Labor Review.
W W W
ANALYSIS OF STRIKES IN SEPTEMBER 1938 1
THERE was some decrease in the number of strikes beginning in
September as compared to August, although the number of workers
involved was about double the number involved in the August
disputes. The 90,000 workers involved in the 176 September strikes
for which detailed information has been received were more than
were involved in the strikes of any preceding month of 1938. The
905,000 man-days idle represented more idleness because of strikes
in September than in any preceding month of this year except May,
when the figure was over a million.
There were several fairly large strikes in September. The largest,
in terms of number of workers involved, was the trucking strike which
began in New York City September 15 in an attempt to reduce
weekly hours from 47 to 40 without decreasing the weekly pay.
On September 22 the drivers returned to work under a 4-day truce,
during which negotiations were to be carried on for a new contract
to replace the one which had expired August 31. On September 26,
no agreement having been reached, the teamsters’ union authorized
a continuation and spread of the strike, which became quite general
among local and long-distance trucking employees in New York City
and also extended into New Jersey. An agreement between the
union and the Merchant Truckmen’s Bureau of New York, an
association of local trucking firms, was reached September 28, by
the terms of which the workers were to receive 47 hours’ pay for a
44-hour week. The Highway Transport Association, the association
of long-distance haulers, signed a similar agreement on October 3.
The strike was practically at an end on this date when another
agreement was signed in New Jersey by the Associated Express and
Truck Owners of New Jersey, Inc., in which the drivers were granted
a wage increase of about $4 a week. Many individual firms had
signed contracts with the union in the meantime.
1 Detailed information on a few strikes has not yet been received.
Data on missing strikes will be included in the annual report.
115 6 52 — 39------ 10
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(See footnote to preceding table.)
142
M o n th l y L a b o r R e v ie w — J a n u a r y 1 9 3 9
In San Francisco, Calif., the strike of department-store workers
which began September 7 continued through the remainder of the
month and was not settled until November 1, when it was terminated
by a signed agreement. In Detroit, Mich., more than 9,000 workers
at the Briggs Manufacturing Co. were idle from September 14 to
17 because of a dispute over the speed-up question. In New Orleans,
La., a large number of construction workers were idle for about 3
days in protest against the delivery of materials by a trucking firm
considered to be unfair by the teamsters’ union. In Wisconsin the
automobile plants of the Nash-Kelvinator Corporation were idle
from September 27 to October 9 because of a dispute over the dis
continuance of operations at the Racine plant.
There were more strikes (24) in the textile industries than in any
other industry group. There were 22 in building and construction,
the same number in trade, and 19 in transportation and communi
cation. The largest number of workers involved in strikes were in
transportation and communication (23,000), transportation-equip
ment manufacturing (16,000), textiles (14,000), and building and
construction (13,000). The greatest number of man-days of idleness
were in transportation and communication (199,000), trade (169,000),
textiles (106,000), and mining (77,000).
T able 1.— Strikes in September 1938, by Industry
Beginning in
September
M andays
idle
during
N um Workers N um Workers
Sep
ber involved
ber involved tember
Industry
All industries. . . . .
. .
________ ____
In progress dur
ing September
. . . ___
176
SO, 887
302
123, 772
905,149
Iron and steel and their products, not including machinery.
Bolts, nuts, washers, and rivets_______ . . . . . .
Cutlery (not including silver and plated cutlery), and
edge tools. ___________________________
_______
Plumbers’ supplies and fixtures_____________________
Steam and hot-water heating apparatus and steam
.
3
80
12
1
2,790
87
30, 852
783
1
1
64
8
1
2
64
23
384
55
1
8
7
2
4
2,003
681
1,217
1
5
4
1
4
1
2
105
15,944
15. 719
225
829
600
50
1
10
5
179
857
351
3
2
2
1
1
398
108
215
15
200
1
1
4
2
14
2
6
3
3
6
5
1
5
1
2
1
1
20
8
9
5
5
5
2
i
i
i
1, 357
394
- 396
469
5,266
681
1,392
2,817
'376
16.416
16,191
225
1,022
600
50
193
179
2,624
604
834
816
370
950
165
200
175
410
9,499
5,122
5; 160
9,849
53; 545
2, 574
25, 420
18,981
6, 570
50, 666
45,941
4, 725
10, 990
6,000
400
4, 053
537
38,206
5,022
17, 514
11, 364
4, 306
17,205
3,885
2,400
2,310
8.610
Stoves.”___________________ _____ _________ _ ___
Structural and ornamental metalwork_______ ______
Wire and wire products_________________
______
Machinery, not including transportation equipment. ____
Electrical machinery, apparatus, and supplies________
Foundry and machine-shop products... _____________
Radios and phonographs______________________ ____
Other . . . ____ _ ____________________ __________
___ _
. _____ ___ _
Transportation equipm ent..
Automobiles, bodies and parts______________________
Other. _ . . _________ _ ______________________
Nonferrous metals and their products. . .. . . .
___
_ .
Jewelry___________ ________________ ____________
Lighting equipment________ . . . ______ __________
Smelting and refining—copper, lead, and zinc... .. .
Other_____ ______ . . . . _________ ______ . . ..
Lumber and allied products______ _ . . ............... ...
Furniture_______________________ ____ ___________ .
Millwork and planing______ . __________ . . . . . . .
Sawmills and logging camps.. . . . . . . . __________
Other. _______________________________________ ._
Stone, clay, and glass products ._ ____ . . . _. __ _ .
Brick, tile, and terra cotta..______ _______ __________
Glass______________________________________
Marble, granite, slate, and other products__________ _
Other________________________________ _. . .
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Federal Reserve Bank of St. Louis
143
I n d u s t r ia l D is p u te s
T a b l e 1. —Strikes in September 1938, by Industry—Continued
Beginning in
September
Industry
Textiles and their products_____
Fabrics:
Carpets and rugs______________
Cotton goods____________________
Cotton small wares____
____
Dyeing and finishing textiles___________________
Silk and rayon goods____ _________________ _
Other________ _________
Wearing apparel:
Clothing, men’s _______ _____ _
Clothing, women’s ___________________________
Hats, caps, and millinery_________________ . .
Shirts and collars________ ______ . .
H osiery............................... ...........
Knitgoods...................... ........... .............
Other_________________________
leather and its manufactures_____ _.
Boots and shoes__________________ .
Leather_____ _________ _____
Other leather goods_____ _________________
Food and kindred products_______
Baking______________________ . . .
Beverages_____ __________________
Canning and preserving__________ ____________
Confectionery_______________ ________
Slaughtering and meat packing_________________
Other_____________________
Tobacco manufactures___________
C igars...________ ____ ____________
Other_________ ______ . . .
Paper and printing__________ . .
_
Boxes, paper____ _ ___________
Paper a'nd pulp____ _____________________
Other_______________ . . . .
Chemicals and allied products_____
Paints and varnishes______
____ . . .
Petroleum refining_______ _____
Other_____________________
Rubber products______________
Other rubber g o o d s ___________________ .
Miscellaneous manufacturing____ _. .
Electric light, power, and manufactured gas_____ __
Broom and brush_____________________
Furriers and fur factories_____ _____________
Other____________________________ .
Extraction of minerals_____________
Coal mining, anthracite_____________________
Coal mining, bituminous_____ _______
Quarrying and nonmetallic mining________ . . .
Transportation and communication____ ____
Water transportation_____________________
Motor truck transportation________ . . . . . .
Motorbus transportation____________
Taxicabs and miscellaneous_______________ ..
Electric railroad................................. ..................... ...
Radio broadcasting and transmitting. _______________
Trade.___ ___________ ____ _______ _____ _
Wholesale___________ ____________ . .
Retail................................ .......................
Domestic and personal service.........................
Hotels, restaurants, and boarding houses__________
Laundries_____________________________________
Dyeing, cleaning, and pressing___ _____ _____________
Professional service__________ __________ _ . . .
Recreation and amusement______________ _
Semiprofessional, attendants, and helpers_____________
Building and construction.. .. ................................
Buildings, exclusive of P. W. A ___ _____ _
All other construction (bridges, docks, etc., and P. W. A.
buildings)_________________________ ______
Agriculture and fishing____ ________
Agriculture______ __________ _______ . . .
. .. .
Fishing_____ _____________________________________
W. P. A., relief, and resettlement projects________________
Other nonmanufacturing industries..'.________ _____ ______
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Federal Reserve Bank of St. Louis
In progress dur
ing September
Mandays
during
N um Workers N um Workers Sep
ber involved
ber involved tember
24
1
2
1
2
2
1
i
14,105
1,525
135
rj205
3,550
210
3,000
231
347
4,425
175
285
318
1
12
318
4, 944
267
3
3
2
i
1,364
1,230
1,975
108
385
4
385
435
202
i
6
3
233
461
101
3
1
1
10
360
400
400
1,836
1
3
6
4
42
48
1,746
1,650
4
1,650
19
3
11
3
i
22,931
188
22,313
295
125
i
22
7
15
7
6
1
10
5,241
666
4, 575
462
423
39
2
2
239
239
22
16
13,211
12, 798
6
4
4
413
4.060
4.060
2
3
190
91
39
17,968
105, 966
1
17
1
135
205
3,800
102
16,250
2,383
2,405
21,150
2,147
12
1
3
2
1
20
3
3,044
1,257
110
1,047
4,425
577
195
4,100
4,823
17,311
12,925
6,230
13,830
6, 580
Of uOU
318
5,297
l ’, 226
29,571
5,559
1,379
1,343
1,975
8, 530
9,552
3,950
1, 769
i
6
656
202
221
682
101
221
1,540
2, 275
1,146
466
4,098
1,261
909
8.480
8.480
175
42
48
3,675
420
108
1
i
40
10
30
17
12
3
2
3
2
1
31
22
5,440
2,872
2,503
65
25,356
211
22,343
295
1,386
1,111
10
9,459
2,485
6,974
1,358
1,203
104
51
261
239
22
13,788
13, 279
76, 695
60,312
15,278
1,105
199,315
2,022
142,088
760
26, 620
27,775
50
168, 645
53,388
115,257
6, 806
4,165
1,366
1,275
3,020
2, 558
462
50,840
48.383
9
6
5
i
4
5
509
8.410
4.410
4,000
363
423
2,457
14.190
10.190
4,000
1,726
940
4
16
1
1
11
10
2
1
26
13
144
M o n th l y L a b o r R e v ie w — J a n u a r y 1 9 3 9
New York, with 42 new strikes in September, had more than double
the number in any other State. There were 20 in Pennsylvania, 11
each in California and New Jersey, 9 in Illinois, and 8 in Wisconsin.
The greatest number of man-days of idleness because of strikes was in
New York, Pennsylvania, and California. Some of the other States
had rather large numbers of workers involved, but most of the workers
were in comparatively short strikes and consequently the amount of
idleness was not so great.
Five of the 176 strikes beginning in September extended into two
or more States and are shown under “interstate” at the end of table 2.
The largest of these was the trucking strike in New York and New
Jersey, referred to previously. The others were a stoppage of hosiery
workers in Pennsylvania and New Jersey; a trucking strike in
Nebraska and neighboring States; a strike of cotton pickers in Arkansas
and Missouri; and a small strike of the crews on three steamships in
California and Washington ports.
T a b l e 2 .— Strikes in September 1938, by States
Beginning in Sep
tember
In progress during
September
N um
ber
N um
ber
State
All States_____________________________________
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Workers
involved
Workers
involved
Man-days
idle during
September
176
90,887
302
123,772
905,149
5
695
11
1
1
1
6,815
182
48
86
9
7
2
1
970
3,229
625
1, 600
3
2
4
5
7
1
4
7,167
2,220
146
10,027
216
30
616
11
42
3
1
6
2
1
20
1
2
1
6
1
2
1
8
5
4, 536
13, 527
167
16
304
335
30
3,273
150
1,525
52
545
385
386
105
5,064
25,815
9
1
18
1
2
1
1
1
11
8
2
2
1
4
2
11
8
9
1
9
2
1
21
72
3
1
12
2
4
40
1
3
7
9
1
3
1
11
6
1,368
50
9,955
182
64
86
18
65
1,580
3, 829
625
1,700
308
11,167
2,220
1,555
10, 600
279
30
1,789
223
46
5,162
17, 042
167
16
1,219
335
1,017
13, 223
150
1,700
1,066
598
385
1,036
105
5, 886
26,926
14,737
50
139, 375
739
848
860
378
1,105
19,364
18,809
2,500
3,400
308
26,734
10,920
6,120
37,490
2, 606
120
13,617
4,803
1,150
36,284
123, 861
1,910
32
17,364
440
7,877
149,099
1,800
8,060
17,726
4,889
1,540
15, 652
420
43,377
168,785
...
--- -
145
I n d u s t r ia l D is p u te s
The average number of workers involved in the 176 strikes beginning
in September was 516. About 56 percent of the strikes, however,
involved fewer than 100 workers each; 33 percent involved from 100 to
1,000 workers each; and 11 percent involved more than 1,000 workers
each. Only one strike, as shown in table 3, involved more than 10,000
workers. This was the trucking strike in New York and New Jersey.
T a b l e 3 . —Strikes Beginning in September 1938, Classified by Number of Workers
Involved
Number of strikes in which the number of workers
involved was—
Industry group
All industries_______________ _
Total
__
176
6 and 20 and 100 and 500 and 1,000
under under under UDder and
20
100
500
1000 under
5,000
33
65
1
52
5.000
and
under
10.000
10,000
and
over
Q
Manufacturing
Iron and steel and their products, not
including machinery____________ _____
Machinery, not including transportation
equipment___________________________
Transportation equipment______________
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_____ _____ _
3
2
7
2
4
10
2
24
1
12
1
5
6
1
10
1
2
1
3
1
6
1
3
1
4
4
2
5
3
6
2
9
8
3
1
6
2
1
2
5
9
4
1
1
2
1
7
1
5
1
1
1
1
2
1
l
2
1
2
1
3
3
1
Nonmanufacturing
Extraction of minerals_____ ____________
Transportation and com m unication..........
Trade______________ ____ ______________
Domestic and personal service___________
Professional service_________ ____ _______
Building and construction______ ____ ___
Agriculture and fishing_________________
W. P. A., relief and resettlement projects...
Other nonmanufacturing industries______
4
19
22
7
2
22
4
2
3
6
1
3
4
7
2
1
6
1
2
1
1
2
2
1
1
1
Union-organization matters—recognition, closed shop, discriminatiou, etc.—were the major issues in 47 percent of the strikes beginning
in September. This group of strikes included about 32 percent of
the total workers involved. Wages and hours were the major issues
in 36 percent of the strikes, including 39 percent of the workers in
volved. In about 17 percent of the strikes, including 29 percent of
the workers involved, the major issues were other matters, including
questions of jurisdiction and union rivalry, seniority, delayed pay,
speed-up, vacations with pay, plant removal, and other grievances.
The duration of the 187 strikes which ended in September is indi
cated in table 5, where they are classified by industry groups. Thirtyfive percent of the strikes were ended in less than a week after they
began, 45 percent lasted from a week to a month, and 20 percent
lasted for a month or more— 10 strikes in the latter group having
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M o n th l y L a b o r R e v ie w — J a n u a r y 1 9 3 9
been in progress for 3 months or more. The largest of these was the
dispute which had kept the plant of the Philadelphia Storage Battery
Co. (Philco radio manufacturers) at Philadelphia, Pa., idle since May
1. This dispute was settled September 7 by a contract with the
United Electrical, Radio and Machine Workers Union, by the terms
of which the hours of work were increased from 36 to 40 per week
and a reduction in wages was put into effect.
T a b l e 4 . — Major Issues Involved in Strikes Beginning in September 1938
Workers involved
Strikes
Major issues
Number
Percent of
total
Number
Percent of
total
All issues------------------- ------ — ........................................ —
176
100.0
90,887
100.0
Wages and hours---------------------- --------- -------------------Wage increase._____________________ _____ - ..........
Wage decrease------ ------------------------------------- -----Wage increase, hour decrease.. ----------------- ------ Wage decrease, hour increase... . . . -------------------Hour decrease...................................................................
63
36
13
9
2
3
35.8
20.5
7.4
5.1
1.1
1.7
35, 704
9,829
5,024
18,879
1,650
322
39.3
10.8
5.5
20.8
1.8
.4
Union organization........................... ......................................
Recognition__________________ _______ _________
Recognition and wages................. ................ ..................
Recognition, wages, and hours-------- —------ --------Closed shop....... ............ ............... ..................................
Discrimination-------------------------------------------------Other....................................................................................
82
19
21
11
22
6
3
46.6
10.8
11.9
6.2
12.6
3.4
1.7
28, 779
2,023
7,934
3,071
9,528
3,086
3,137
31.6
2.2
8.7
3. 4
10.4
3.4
3.5
Sym pathy.........................................................................Rival unions or factions------------------------------------Jurisdiction........ ............ ...................................................
Other.............................................................. - ....................
31
1
3
6
21
17.6
.6
1.7
3.4
11.9
26,404
3,000
1,346
730
21,328
29.1
3.3
1. 5
.8
23.5
T a b l e 5.— Duration of Strikes Ending in September 1938
Number of strikes with duration of
Industry group
All industries___________ ____ ______________
3
V> and 1 and 2 and
less
months
less
and less less
or
than 3^ than 1 than 2 than 3
month month months months more
Total
Less
than
187
66
48
35
16
12
9
1
2
3
2
1
1
3
1
1
1
3
4
10
Manufacturing
Iron and steel and their products, not including
Machinery,"not including transportation equip4
1
10
1
23
3
13
5
6
2
9
3
6
3
4
1
1
3
10
1
5
1
3
5
2
3
1
4
2
2
1
6
3
1
6
1
2
1
1
2
1
2
1
1
i
1
1
1
i
Nonmanufacturing
Trade__________________________
______
Domestic and personal service---- ------------------Building and construction.................... ..................
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Federal Reserve Bank of St. Louis
7
14
27
11
1
26
3
4
3
4
8
13
1
12
1
1
5
2
2
1
2
i
1
1
2
2
2
3
1
1
1
1
1
1
147
I n d u s t r i a l D is p u te s
As indicated in table 6, settlements of 46 percent of the strikes
ending in September were negotiated directly by employers and repre
sentatives of organized workers. These strikes included 41 percent
of the total workers involved. Government conciliators or labor
boards assisted in negotiating settlements of 42 percent of the strikes,
in which 46 percent of the total workers were involved. Union officials
represented the workers in most of these cases.
Approximately 10 percent of the strikes, including a similar propor
tion of workers involved, were terminated without formal settlements.
Most of these strikes were lost when the workers returned to work
under the employers’ terms or when employers hired new workers to
fill the vacancies, moved their plants, or went out of business.
T a b l e 6 . —Methods of Negotiating Settlements of Strikes Ending in September 1938
Strikes
Workers involved
Negotiations toward settlements carried on by—
Number
T otal______________ ______ _____ ____
Employers and workers directly— _________
Employers and representatives of organized workers
directly_____________________ _____ _________
Government conciliators or labor boards_____________
Private conciliators or arbitrators__________
Terminated without formal settlem ent-.. . . .
Percent of
total
Number
187
100.0
67,281
1
.5
30
86
78
2
20
46.0
41.7
27,570
30,972
1, 667
7 , 042
1.1
10.7
Percent of
total
100.0
(>)
41.0
46 0
2 5
10.5
1 Less than Ho of 1 percent.
In about 39 percent of the strikes ending in September the workers
(41 percent of the total) obtained substantially all of their demands.
Approximately 36 percent of the strikes, including 35 percent of the
workers involved, resulted in partial gains or compromises, and 16
percent of the strikes, which included 9 percent of the total workers
involved, resulted in little or no gains to the workers. The results
insofar as 10 percent of the workers were concerned were indeterminate.
T a b l e 7. —Results of Strikes Ending in September 1938
Strikes
Results
Number
Total
________________________ .
Substantial gains to workers______________________
Partial gains or compromises______ _____________
Little or no gains to workers__ ______ _______ ______
Jurisdiction, rival union or faction settlem ents.. _____
Indeterminate_______________________________
N ot reported............................ ..................................
Workers involved
Percent of
total
Number
Percent of
total
187
100.0
67, 281
100.0
73
68
30
10
4
2
39.1
36.4
16.0
5.3
2.1
1.1
27, 756
23, 773
5,852
2,107
7,183
610
41.3
35.3
8.7
3.1
10.7
In terms of number of strikes, the disputes over wage-and-hour
issues appear to have been more successful from the workers’ view
point than the disputes primarily over union-organization matters.
In terms of the number of workers involved, however, the opposite was
true.
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Federal Reserve Bank of St. Louis
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M o n th l y L a b o r R e v ie w — J a n u a r y 1 9 3 9
Of the wage-and-hour strikes, the workers substantially won
43 percent, compromised 41 percent, and lost 16 percent, as com
pared, respectively, with 39, 37, and 20 percent of the union-organiza
tion strikes. Of the workers involved in the wage-and-hour strikes,
32 percent won substantially all of their demands, 52 percent obtained
compromise settlements, and 16 percent gained little or nothing.
The corresponding percentages of workers involved in the unionorganization strikes were 41, 44, and 12.
T a b l e 8.- —Results of Strikes Ending in September 1938, in Relation to Major Issues
Involved
Strikes resulting in
Major issues
Total
Sub
stantial
gains to
workers
Juris
diction,
Partial Little
rival
In
gains or or no
union deter
N ot re
compro gains to or fac minate
ported
mises workers tion
settle
ments
N u m b e r o f s tr ik e s
All issues______________________
187
73
68
30
Wages and hours-.............................
Wage increase.................. ..........
Wage decrease--........................
Wage increase, hour decrease..
Wage decrease, hour increase..
Hour decrease............................
56
34
13
24
23
17
3
9
5
3
Union organization.........................
Recognition........................ ........
Recognition and w ages............
Recognition, wages and hours.
Closed shop__________ ____
Discrimination__________ ___
Other______________________
97
17
38
4
16
29
9
9
9
3
5
Miscellaneous__________________
Sym pathy__________________
Rival unions or factions_____
Jurisdiction___ _____ _______
Other........ ....................................
34
11
2
2
20
6
1
6
11
9
1
8
1
1
1
36
5
7
5
16
3
9
4
2
19
5
5
2
1
2
2
3
3
1
6
1
1
1
2
1
2
4
23
10
10
4
' 11
9
2
6
2
1
1
N u m b e r o f w o r k e r s in v o lv e d
All issues.____ ____ ____ _______
67,281
27,756
23,773
5,852
Wages and hours_______________
Wage increase______________
Wage decrease______________
Wage increase, hour decrease..
Wage decrease, hour increase..
Hour decrease._____________
17,430
lo; 187
4,119
168
2,482
474
5,614
1,433
3,732
127
9,076
8,568
2,740
186
177
Union organization_____________
Recognition_________ _____ _
Recognition and wages______
Recognition, wages and hours.
Closed shop________________
Discrimination........................ .
Other........ ............ ......................
25,457
2,168
5,994
3,331
10,365
3,325
274
10,362
787
4,285
1,813
893
2,450
134
i l , 213
315
877
389
9,023
609
3,089
303
832
1,129
419
266
140
M iscellaneous...................................
Sym pathy_____ ______ ______
Rival unions or factions_____
Jurisdiction................................
Other____________ _____ ____
24,394
3,000
1,354
753
19,287
11,780
3,484
23
11, 780
3,484
23
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Federal Reserve Bank of St. Louis
322
210
41
250
7
2,107
7,183
610
183
153
610
610
2,232
145
30
2,107
7.000
3.000
1, 354
'753
4,000
149
I n d u s t r ia l D is p u te s
ACTIVITIES OF UNITED STATES CONCILIATION
SERVICE, NOVEMBER 1938
THE United States Conciliation Service in November disposed of
342 situations involving 97,965 workers. The services of this agency
were requested by employees, employers, and other interested parties.
There were 164 labor disputes which involved 89,161 workers and
were in the form of strikes, threatened strikes, lockouts, and contro
versies. The remaining 178 situations, involving 8,804 workers,
included information furnished, adjustment of complaints, conferences
regarding labor conditions, etc.
Activities of the Service were utilized by employees and employers
in 42 States and District of Columbia (table 1).
The facilities of the Service were used in 25 major industrial fields,
such as automobile, building trades, foods, iron and steel, textiles,
etc. (table 2).
T a b l e 1.—Situations Disposed of by U. S. Conciliation Service, by States, November 1938
Disputes
State
Other situations
N um
ber
Workers
involved
N um
ber
___
164
89,161
178
Alabama______________________
_____
California___________________________
3
6
2
14
1
3
1
1
20
10
2
1
342
17,193
4,100
' 764
2,400
530
400
195
1,930
1,753
1,615
4
2,665
250
502
1,312
1,330
2,260
All States_______ __________ _____
District of Columbia___________________
Florida______________ ________ ______
Idaho.._____ ________________________
Illinois.— ____________________________
Indiana_____ ______ ________________
_______________
M aine______________
Minnesota____________________________
M ississippi____________ _______________
1
2
7
3
3
3
Nebraska_______
...
______ _ _____
N ew Jersey_________________ _ _______
N ew Mexico_______________ _____ _____
North C arolina... . . . . . . ._
Ohio_______________ _______
__ ___
. . . ..
1
2
1
1
7
3
10
1
13
1
19
Tennessee _______
... .
Utah
______
. .
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Federal Reserve Bank of St. Louis
. ________
102
1,706
226
1,399
108
400
5,517
1,058
, 823
15
17,082
1,109
6
3
1
4
2
4,079
705
900
4,710
255
2
ï
5
1,308
92
2,026
________
1
5
2
Total
Workers
involved
N um
ber
8, 804
342
850
4
6
37
3, 201
' 278
3
804
5
3
1
1
1
1
1
6
7
1
5
5
2
21
12
13
1
4
10
1
6
3
5
1
2
10
2
6
86
1
1
2
35
1
6
43
47
5
5
2
432
17
18
1
212
485
500
736
3
5
400
5
108
503
11
4
51
1
6
1
ï
25
13
2
2
1
5
2
2
8
9
10
1
8
1
2
1
1
12
5
31
13
26
2
4
29
4
7
7
7
1
2
12
3
5
Workers
involved
97, 965
1,192
17', 199
7,301
1,042
2,400
1, 334
400
195
1, 936
1,839
1,615
103
1
2, 667
285
502
1,313
1,336
2,303
47
1,711
226
1,399
108
400
5,522
1,060
7,255
32
17,100
1,110
212
4, 564
1,205
1,636
4,713
260
400
5
1,416
595
2,026
150
M o n th l y L a b o r R e v ie w — J a n u a r y 1 9 3 9
T a b l e 2 . — Situations Disposed of by U. S. Conciliation Service, November 1938, by
Industries
Disputes
Other situations
Total
Industry
N um
ber
Workers
involved
N um
ber
All industries.________________________
164
89,161
Agriculture________ ___________________
Automobile___________________________
Building trades________________________
Chemicals_____________________________
C ommunications______________________
Domestic and personal_________________
Food___________________________ _____
Iron and steel______ _____ . ________
Leather_______ ______________________
Lumber:
Furniture___________ _____ ________
Other____________
_____________
M achinery.. ________ ______________
Maritime__________ _________________
M ining__________
. . ___________ . . .
Motion pictures________________ _______
Nonferrous metals. . _____
. ________
Paper and printing__________ ______ ___
Petroleum_____________ ________ _____
Professional____________ _________ . . .
Public utilities______ _ ___________ . . .
Rubber_____ ________________
____
Stone, clay, and glass________
___
Textile:
C otton. ___ ____________’ .......... .
Other___________________ 1 .............
T r a d e ._______ _______________ fl _____
Transportation_______.... . .
_______
Unclassified___________________ . ........
3
9
13
5
16,980
4,270
4,129
626
4
13
13
15
293
4,068
7,859
654
3
3
9
10
13
2
1
1
12
8
1
2
543
2, 044
4,852
2, 341
5
3
5
4
13
3
3
3
1,173
1,985
310
329
4,650
'891
405
1
16
2
5
1
250
7,734
6,023
16, 524
15
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Federal Reserve Bank of St. Louis
1
11
5
5
200
8
178
1
1
2
1
1
1
3
3
1
2
10
Workers
involved
8,804
Workers
involved
342
97,965
4
598
4
13
26
3
3
3
16
18
16,981
4,274
4, 727
627
1
1
2
11
1
4
6
6
20
6
8
9
33
15
17
15
25
4
13
1
86
1
401
24
14
1,671
3,752
545
47
1,631
10
N um
ber
11
21
11
4
3
3
3
5
11
40
16
15
48
202
296
4,071
7,870
655
547
2,050
4,861
2, 374
i; 6
1,T98
1,989
396
330
4, 650
891
806
1,921
11, 486
, 568
16, 535
1,646
6
v
Minimum iVages and Maximum Hours
INTERPRETATIONS AND REGULATIONS UNDER
FAIR LABOR STANDARDS ACT, 1938
THE interpretations and regulations promulgated as a guide to mem
bers of industry covered by the terms of the Fair Labor Standards
Act of 1938, from the date when the administrative machinery was
established in the United States Department of Labor until December
8, 1938, are summarized in this article.1 It has been necessary for
the Wage and Hour Division of the Department of Labor, which is
primarily responsible for the administration of the legislation, to clarify
many points in connection with operations under the law.
The Fair Labor Standards Act was passed in June 1938 in order to
provide minimum working standards for worke* 3 engaged in interstate
commerce or in the production of goods fo. interstate commerce.2
During the first year, under the terms of t v law, the workweek
without payment of overtime may not exceed 44 hours and the rate
of pay may not fall below 25 cents an hour. The maximum standard
workweek will be reduced to 42 hours in the *'■ ^.nd year and to 40
hours thereafter. Work in excess of the prescribed hours must be
compensated at not less than one and one-half times the regular rate
at which the worker is employed. Minimum wages will increase from
25 cents during the first year to 30 cents for the following 6 years.
At the end of 7 years the minimum hourly wage will be increased to
40 cents or such rate, not less than 30 cents an hour, as may be pre
scribed under special powers delegated to the Administrator of the
statute. Lower rates may be prescribed for learners, apprentices,
messengers, and for persons whose earning capacity is impaired by
age, physical or mental deficiency, or injury. Certain industries and
occupations are specifically exempt, and child labor is forbidden.
Provision is made for advancing the minimum wage rate toward 40
cents, on an industry basis, through wage orders of the Administrator
promulgated after recommendation by special industry committees
which are to be set up for each industry subject to the act.
Interpretations and regulations issued deal with the coverage of
the law, records required of employers, definitions of exempt classes
1Data are from press and other releases of the IT. S. Department of Labor, including the Children’s Bureau
and the Wage and Hour Division.
2For a summary of the Fair Labor Standards Act of 1938, see M onthly Labor Beview, July 1938 (p. 107).
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M o n th l y L a b o r R e v ie w — J a n u a r y 1 9 3 9
of labor, and tolerances allowable in fixing the terms of employment
for special groups of workers. Since not all questions have been ruled
on, the Administrator has enlisted the cooperation of those affected
by the law to facilitate the introduction of its provisions and to join
in working out problems. Where employers are in doubt as to whether
their employees are subject to the law, they are advised to comply.
Interpretations of Terms of Act
C o v e r a g e .—The general counsel of the Wage and Hour Division
issued an interpretation declaring that the statute does not confer
upon the Administrator any general power to state that particular
industries are covered by the law or to exclude others. Inclusion or
exclusion depends upon interpretations of the courts and not upon
administrative action. Since only employees engaged in interstate
commerce or in the production of goods for interstate commerce are
entitled to benefits under the law, some employees in a given industry
or plant may not be subject to the law while others are. However,
the general counsel states that it was the intention of Congress to
give the statute the widest possible application.
The test for applicability of the act, as summed up in Interpretative
Bulletin No. 5, is whether or not “the employer intends or hopes or
has reason to believe that the goods or any unsegregated part of them
will move in interstate commerce.”
If, however, the employer does not intend or hope or have reason
to believe that the goods in production will move in interstate com
merce, that the goods ultimately do move in interstate commerce
would not bring employees engaged in the production of these goods
within the purview of the act. The facts at the time that the goods
are being produced determine whether an employee is engaged in
the production of goods for commerce and not any subsequent act
of his employer or of some third party. Of course, the fact that
goods do move in interstate commerce is strong evidence that the
employer intended, hoped, or had reason to believe that the goods
would move in interstate commerce.
Workers engaged in interstate commerce include, typically but not
exclusively, those in the telephone, telegraph, radio, and transporta
tion industries. Typical of workers producing goods for interstate
commerce are those engaged in manufacturing processing, or dis
tributing plants, a part of whose goods move out of the State where
the work is done. The benefits of the law extend to employees such
as maintenance men, watchmen, clerks, stenographers, and messengers,
when they may be considered engaged in processes necessary to the
production of goods for interstate commerce. Persons working on
raw materials derived from within a State and in cases where none
of the product moves in interstate commerce are not covered. If
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Federal Reserve Bank of St. Louis
M in im u m
Wages a n d
M a x im u m H o u r s
153
employees are subject to the law, it is immaterial whether they work
at home, in the factory, or elsewhere.
Piece workers, as well as hourly employees, are subject to the law
and must receive remuneration sufficient to bring their hourly rates
up to the required minimum.
S ta tu s o j D is tr ic t o f C o lu m b ia a n d T errito rie s.- —Congress might have
extended the terms of the law to purely local commerce in the District
of Columbia or within a Territory or possession, by virtue of existing
legislative power. As this was not done, only such employees in
these areas as are engaged in interstate commerce or in the production
of goods for interstate commerce, as already defined, are covered.
The Administrator announced that such employees in the District of
Columbia, Alaska, Hawaii, Puerto Rico, the Canal Zone, Guam,
Guano Islands, Samoa, and the Virgin Islands are thus eligible for the
same benefits as employees in the different States.
W a g e s i n lie u o f cash.- —Excessive deductions from wages for the
purpose of evading the minimum-wage requirements are not per
missible. A minimum hourly rate of 25 cents, a 44-hour week, and
time and a half the regular rate of pay for overtime hours are required.
Where the employers furnish board, lodging, or other facilities, and
make a charge against wages, the charge must not exceed the actual
cost thereof to the employer or to any affiliated person. In no case
may the value of wages in cash and kind, when taken together, be
less than the guaranteed minimum.
Currency or checks payable at par are accepted mediums of wage
payment. Generally speaking, scrip is not a proper medium of pay
ment under the act, except that the actual cost to the employer of
facilities furnished in exchange for scrip issued prior to the end of the
pay period may be considered as wages for that period.
O vertim e p a y . —The act does not justify any employer in reducing
the hourly wage rate of an employee in order to lower remuneration
for overtime hours. The hourly overtime rate of pay must be at
least one and one-half times the regular rate paid to the employee,
not one and one-half times the minimum hourly rate established by
the wage and hour legislation. The intent of Congress was clearly
to penalize overtime work and any other interpretation of the over
time-pay provision would defeat this purpose. The act does not
prescribe an 8-hour day but limits hours on the basis of a normal
workweek. Time lost in 1 week may not be made up in the next.
Partial exemption from this overtime provision up to 12 hours in
any workday or 56 hours in any workweek is granted, under the
statute, where an agreement, made as a result of collective bargaining
by representatives of employees certified as bona fide by the National
Labor Relations Board, provides for employment for not more than
1,000 hours in anv 26 consecutive weeks, or 2,000 hours within a year.
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It is also granted, for not more than 14 workweeks in the aggregate
in any calendar year, in the case of an industry found by the Adminis
trator to be of a seasonal nature. The word “seasonal” does not
apply to an industry operating throughout the year, even though
there is a peak in activity. Seasonality is regarded as existing only
where an industry operates only a part of the year owing to natural
conditions affecting the supply of materials.
Regulations Issued
A p p r e n t i c e s .—To the extent necessary to prevent curtailment of
employment opportunities, the Administrator may provide for the
employment of apprentices at less than the minimum wage rates
applicable under the act. An apprentice is defined as a person at
least 16 years old who has a written apprenticeship agreement that
has been approved by the proper State authority or by the Federal
Committee on Apprenticeships and which provides for not less than
4,000 hours of reasonably continuous employment and at least 144
hours per year of related supplemental instruction. (Regulations,
pt. 521.)
Applications for employment at rates below the applicable minimum
must be filed with the Administrator on official forms signed by both
the employer and the apprentice. If approval is granted after exami
nation of the application and the accompanying apprenticeship agree
ment, a special certificate is issued setting forth the rate of pay and
the term specified in the agreement.
Appeal from a decision affecting an apprentice is permitted within
15 days after action is taken or within any further time allowed by
the Administrator. If the request for review is granted, all interested
persons are afforded an opportunity of being heard.
Pending the time when normal procedure is fully operative a tem
porary certificate authorizing employers to employ apprentices at
wage rates below the minimum has been issued. It permits such em
ployment from October 24, 1938, to February 1, 1939, provided the
worker is a bona fide apprentice, covered by an agreement, and is paid
at a rate not less than that specified in the agreement. This does not
exempt the parties from filing an application immediately in the form
already outlined. If the apprenticeship certificate is granted on the
basis of the application, it supersedes the temporary certificate; if
denied prior to February 1, 1939, the temporary certificate becomes
inoperative immediately upon notice to the employer.
A r e a o f p r o d u c t i o n .—The act exempts from both wage and hour
provisions persons employed in the “area of production” to handle or
prepare or can agricultural or horticultural commodities for market or
to make dairy products. It exempts from the maximum hour pro
visions employees of employers engaged in the first processing within
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the “area of production” of agricultural or horticultural commodities
during seasonal operations for a total of not more than 14 weeks each
year. These definitions are given in the regulations to cover work
done on a farm on commodities produced on that farm, or work per
formed in a plant on commodities obtained from farms in the imme
diate locality, where the plant does not employ more than seven
employees. (Regulations, pt. 536.)
B o a r d , lo d g in g , a n d o th e r f a c i l i t i e s .—Under regulations determining
the reasonable cost of board, lodging, and other facilities “reasonable
cost” is determined to be not more than the actual cost to the employer
and does not include a profit to the employer or to any af
filiated person. The reasonable cost of company houses rented
to the employee and of any other capital investments used to
furnish facilities is calculated to be the cost of operation and mainte
nance, including any depreciation due to wear and tear, plus interest
not to exceed 5% percent on the depreciated amount of capital invested.
Capital and depreciation are ordered computed pursuant to Regulation
94 of the Bureau of Internal Revenue. No cost in excess of the fair
rental value of the property is recognized as reasonable.
If facilities are primarily for the benefit or convenience of the em
ployer, they may not be charged as wages. Typical of such facilities
are tools of the trade, the cost of any construction by and for the
employer, and uniforms if the employees are required to wear them.
Either the Administrator or his representative may notify an em
ployer that he intends to hold a hearing to determine the reasonable
cost of board, lodging, or other facilities. Such hearings must be
held as near the employer’s place of business as possible. Employees
must be notified by means of notices to be posted by the employer of
the place, date, and purpose of the hearing. (Regulations, pt. 531.)
C h ild l a b o r .—The act provides a minimum age of 16 years for em
ployment in all occupations, with the exception of (1) children working
for their parents in nonmining or nonmanufacturing occupations, (2)
children between 14 and 16 in nonmining and nonmanufacturing oc
cupations outside school hours and under conditions held not to inter
fere with their health and well-being, and (3) minors between 16 and
18 years of age in occupations determined to be hazardous or detri
mental to their welfare, to which an 18-year minimum applies. TheChildren’s Bureau in administering these provisions of the act pro
vides for certificates of age for all employees of these classes.
The employment of a minor is not deemed oppressive if the employ
er has on file an unexpired certificate issued in accordance with regula
tions of the Children’s Bureau, showing that the minor meets the age
requirement for employment in the particular occupation. In order to
avoid unwitting violation of the statute, an employer should have age
certificates for minors in his employ who are 16 or 17 years old if
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employed on ordinary tasks and 18 or 19 years if engaged in occupa
tions which have been by order declared hazardous.
Federal certificates of age must contain complete information on
name and address, place and date of birth, sex, and color, and related
facts. Proof of age is required in the form of a birth certificate, or
record of baptism, etc. A State certificate may be substituted for a
Federal certificate of age, provided the system of issuing permits is in
accord with the national regulations. If after investigation it appears
that the age of a minor is incorrectly reported, the certificate may not
be revoked until ample opportunity has been given the employer and
the minor to prove its validity. Once revoked or suspended, a certifi
cate is of no effect, unless such action is reversed and a new certificate
issued.
In States that do not issue certificates of age, a birth certificate or
attested transcript thereof, a signed statement by the registrar of
vital statistics, or a record of baptism or attested transcript thereof,
was declared acceptable as a temporary certificate of age until
January 23, 1939.
For the 6 months beginning October 24, 1938, certificates of
the following States and the District of Columbia were declared
acceptable in place of Federal certificates of age by the Children’s
Bureau: Alabama, Arizona, Arkansas, California, Colorado, Con
necticut, Delaware, Florida, Georgia, Illinois, Indiana, Kansas,
Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota,
Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey,
New Mexico, New York, North Carolina, Ohio, Oklahoma, Oregon,
Pennsylvania, Rhode Island, South Carolina, South Dakota, Ten
nessee, Utah, Vermont, Virginia, Washington, West Virginia, and
Wisconsin.
Before an occupation may be declared hazardous to minors a study
is required, as well as conferences with members of the industry and
others, and public hearings. An order must be made on the basis of
the findings, and it may be revised if indicated.
H a n d i c a p p e d p e r s o n s .—Persons whose earning capacity is impaired
by age or physical or mental deficiency or injury may be employed at
wage rates below the minimum requirements, to the extent necessary
to prevent curtailment of opportunities for employment if, after ap
plications have been submitted on official forms signed by both the
handicapped worker and his employer, a special certificate is issued.
If necessary, an investigation of the case may be ordered. In no case
may the wage authorized be less than 75 percent of the applicable
minimum wage until approved by the Administrator after investiga
tion. All certificates issued prior to July 1, 1939, will terminate on
September 1, 1939, unless sooner revoked. In addition the em
ployment of handicapped persons in sheltered workshops is the subject
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of a special temporary certificate recently issued by the Administrator.
Although no minimum wage has been set in this regard, the Admin
istrator has ordered that compensation must be computed on the basis
of the actual earning capacity of the handicapped workers involved.
An advisory committee is to make recommendations to the Admin
istrator as to the proper method of providing for the employment of
handicapped workers in such organizations at wages below the appli
cable minimum. Inexperienced or slow workers may not be placed in
this class unless handicapped. No employer may give false evidence
in order to place employees in a lower wage category, or pay a
handicapped worker less than the special certificate issued specifies.
Aggrieved persons are entitled to have their cases reviewed.
(Regulations, pt. 524.)
A temporary certificate of exemption permits the employment of
handicapped persons, without a special certificate, at less than the
minimum rates of pay, until February 1, 1939. This group of exempt
workers includes persons who were on the pay roll on or before
October 17, 1938, and paid at rates below the minimum and lower
than the rates paid nonhandicapped employees doing similar work.
The rate of pay may not be less than 75 percent of the normal min
imum rate under the law. Exemption is denied if, prior to October
17, 1938, more than 5 percent of the employees of any employer per
forming similar work received the same rate of pay as the alleged
handicapped worker, but this limitation is not applicable in the case
of employment by nonprofit or semicharitable organizations. A spe
cial temporary provision has been made for employment by certain
charitable nonprofit organizations carrying on recognized programs for
the rehabilitation of handicapped persons.
The temporary exemption was ordered terminated on December 1,
1938, as to any particular employee, unless an application was filed
with the Administrator prior to that time. In case a special certificate
is issued, it supersedes the temporary certificate.
L e a r n e r s .—Special provisions governing the pay of learners permit
the Administrator to authorize wages below the minimum rate pre
scribed. Applications for employment at lower rates may be filed
by an employer or employee or groups of employers or employees and
will be dealt with on an industry basis. Such applications must give
specified data on conditions in the industry. Hearings are required
and witnesses may be called.
Although the burden of proof rests on the applicants, the regulations
in this respect have been amended relieving them of the responsibility
of showing whether experienced workers are available for employment
in the occupation or occupations in question. The facts in this con
nection may be required by the Administrator. If a lower wage is
found necessary to prevent curtailment of opportunities for employ115652— 39----11
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ment, the Administrator will issue regulations providing for employ
ment of learners in the industry under special certificates at a lower
wage. Decisions are, however, subject to review on application.
(Regulations, pt. 522.)
M e s s e n g e r s . —The regulations governing employment of messengers
at rates below the minimum fixed under the act are similar to those
for learners, summarized above. In fixing wages, the needs of an
entire industry must be considered. (Regulations, pt. 523.)
A d m in is tr a tiv e a n d p r o f e s s io n a l e m p lo y e e s a n d o u tsid e s a le s m e n .—
Regulations defining and delimiting the terms “any employee
employed in a bona fide executive, administrative, professional, or
local retailing capacity or in the capacity of outside salesman,” deal
with each of these classes of workers separately. (Regulations,
pt. 541.)
An executive or administrative employee is any employee whose
primary duty is managerial, who customarily and regularly directs
the work of other employees, hires and fires other employees, exercises
discretionary powers, does no substantial amount of work of the same
nature as that performed by nonexempt employees, and is paid at not
less than $30 per week, exclusive of board, lodging, or other facilities.
A professional is defined as any employee engaged in work pre
dominantly intellectual and varied in character, requiring the use of
discretion and judgment both as to the manner and the time of per
formance, and which cannot be standardized in relation to a given
period of time. Such work requires educational training in a specially
organized body of knowledge, as distinguished from either a general
academic education or from apprenticeship or training in the perform
ance of routine mental, manual, mechanical, or physical processes.
Employees engaged in a local retailing capacity are those cus
tomarily and regularly^making sales the greater part of which are in
intrastate commerce. This exemption is not to be confused with
that provided in Section 13 (a) (2) of the Act to the effect that “any
employee engaged in any retail or service establishment the greater
part of whose selling or servicing is in intrastate commerce” shall not
be subject to the wage and hour provisions of the Act. According to
an interpretation made by the Administrator two factors are to be
considered in determining whether the greater part of the selling or the
servicing of a given enterprise is in intrastate commerce (i. e., more
than 50 percent of the servicing or selling): “ (1) The number of
sales made within the State in which the establishment is located as
compared with the total number of sales of the establishment; (2) The
gross income derived from sales made or services performed within
the State as compared with the total gross income of the establish
ment.” 3
s See Interpretative Bulletin No. 6, for further details and for determinations as to the meanings of “retail,”
‘service” and “establishment.”
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Outside salesmen include those performing work away from the
employer’s place of business, who regularly make sales and do no
substantial amount of work of the same nature as that performed by
nonexempt employees. Routine deliveries are not classed as sales.
S e a s o n a l in d u s tr ie s .—The law provides an exemption from the
overtime provisions, for a period of not more than 14 workweeks in the
aggregate in any calendar year, for workers engaged in industries of a
seasonal nature. Such employees may work 12 hours per day and
56 hours per week during this period without overtime pay.
A seasonal industry is one in which handling, extracting, or process
ing of materials occurs regularly during the same part or parts of the
year, and in which production ceases, except for maintenance, repair,
clerical, and sales work, in the remainder of the year, owing to natural
conditions making the materials unavailable during the remainder
of the year.
Any industry or employer, or employer group, may apply in writ
ing for exemption, preferential consideration being given to applica
tions of groups or organizations representative of the whole industry
or branch thereof. The Administrator may deny or grant a prelimi
nary exemption, subject to reconsideration upon application for a
hearing. The procedure for hearings is outlined in detail and all
persons interested are entitled to be heard.
Pending the time when this procedure is in full effect, provision has
been made for the temporary exemption of seasonal industries, for
the period ending January 31, 1939, provided, however, that 'at
least 50 percent of their annual output is produced in a period of not
more than 14 workweeks. (Regulations, pt. 526.)
Administration and Procedure
To facilitate administration of the Fair Labor Standards Act of 1938,
general rules and regulations applicable to industry committees
have been issued. The Administrator has also issued regulations
dealing with the records which employers are required to keep.
I n d u s t r y c o m m itte e s .—The powers of the Administrator include
appointment of the members of an industry committee and designa
tion of its chairman. Subcommittees may be appointed by the
chairman of the industry committee, unless a different procedure is
adopted by majority vote. Meetings may be convened by the
Administrator, and orders calling the membership together must be
published in the Federal Register and otherwise made public. Meet
ings may be called by the Administrator or the chairman in Wash
ington, D. C., unless otherwise specified. Two-thirds of the member
ship constitutes a quorum and decisions require a majority vote of
all members.
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An industry committee, when in session, must hear testimony pre
sented by the Administrator and interested parties, and is required to
keep a journal of all meetings. Subpenas and orders for depositions
may be issued only by the chairman of the committee or of a subcom
mittee, on forms furnished by the Administrator. Reports must be
furnished to the Administrator on request. The committee may
recommend that the scope of the industry as defined be modified,
enlarged, or restricted.
In order to reach the objective of a universal 40-cent minimum
hourly wage as soon as economically feasible, each committee is to
study conditions in the industry over which it has jurisdiction and
recommend to the Administrator the highest minimum wage rates
(not to exceed 40 cents an hour) consistent with economic and com
petitive conditions.
No wage may be fixed solely on a regional basis, but competitive
conditions as affected by transportation and other costs must be taken
into account, as well as wages for comparable work. No classifications
are permissible on the basis of age or sex.
After making a report containing its recommendations and the
reasons therefor, the committee must deposit all its records and docu
ments with the Administrator. If a committee fails to act or un
reasonably delays its work, the Administrator may dissolve it. Once
a committee has completed its work and made recommendations, it
ceases to perform any further functions until reconvened by the
Administrator, or it may be dissolved by him. (Regulations, pt. 511.)
Industry Committee No. 1 for the cotton, silk, and rayon textile
industry was the only body established by the end of November 1938.
R e c o r d s .—Employers subject to any provisons of the law are
required to make and preserve records concerning each of their employ
ees. The individual record must contain the name in full; home
address; date of birth if under 19; hours worked each day and week;
if overtime is worked, the regular rate of pay and basis of wage
payment, wages excluding extra compensation for overtime, and
extra wages due to the excess of the overtime rate over the regular
rate; additions to cash wages at cost or deductions from the stipulated
wages in the amount deducted or at the cost of the item for which
deduction is made, whichever is less and only if the cash wage actually
paid is less than the minimum required; total wages paid for each
week; and date of payment.
For administrative and professional employees, retail salesmen
engaged primarily in intrastate commerce, outside salesmen, etc., it is
necessary only to keep a record of the name, address, and occupation
No particular record form is required, but the Wage and Hour
Division has prepared a model blank for the guidance of employers,
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giving detailed instructions as to the data to be furnished under each
heading. (Regulations, pt. 516.)
L a w n o t r e tr o a c t iv e .—The wage and hour provisions of the Fair
Labor Standards Act are not retroactive. However, all goods pro
duced and handled in interstate commerce under substandard condi
tions on or after October 24, 1938, became “outlaw” goods on that
date.
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Wages and Hours of Labor
ENTRANCE RATES OF COMMON LABORERS,
JULY 1938
B y E d w a r d K. F r a z ie r a n d J ac ob P e r l m a n , Bureau of Labor Statistics
HOURLY entrance rates of adult male common laborers in 20 in
dustries averaged 50.8 cents for the country as a whole in July 1938.
Of the total number of common laborers, 3.3 percent had entrance
rates under 25 cents, 8.0 percent under 30 cents, and as many as 16.6
percent under 40 cents.
The 1938 figures are based on the 13th annual survey of entrance
rates of common laborers as of July 1, recently completed by the
Bureau of Labor Statistics. The sample covered 150,617 common
laborers working at entrance rates in 16 important manufacturing
industries, 3 public-utility industries, and building construction.
Scope and Method of Survey
As in previous surveys, a common laborer was defined as one who
‘‘performs physical or manual labor of a general character and simple
nature, requiring no special training, judgment, or skill.” The term
includes only unskilled workers, omitting machine operators as well
as learners and apprentices. The former have had and the latter are
in the process of acquiring various degrees of training, and both can
therefore be regarded as semiskilled workers. The common laborers,
on the other hand, do not have to undergo any course of training, and
a verbal order from a foreman or supervisor is generally sufficient to
enable them to perform their tasks satisfactorily.
The entrance rate was defined as the lowest rate paid to common
laborers when newly hired. In most establishments, all common
laborers are paid a single rate, which is also the entrance rate. Some
plants have several entrance rates, which are based on the kind of
duties performed, such as dangerous, unpleasant, and extraordinarily
heavy work. In a number of establishments, however, there are
several rates in existence—an entrance rate and one or more higher
rates, varying in accordance with length of service, efficiency, and
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163
seniority. The survey did not include any workers who received more
than the entrance rate.
For the sake of comparability with previous years, the data in this
survey were obtained as of July 1, 1938. This antedates considerably
October 24, when the Fair Labor Standards Act of 1938 went into
effect, providing for a minimum of 25 cents an hour for workers in
industries engaged in interstate commerce. The present survey
covered the same industries as were included in 1937 and 1936.
The Bureau’s survey was again confined to adult male laborers,
since very few females and minors are to be found doing the kind of
work usually performed by common laborers. The classification by
race—white, Negro, and “other”—was likewise maintained.
The data were secured by mail questionnaire, and reports showing
one or more common laborers working at the entrance rate were
received from 4,944 establishments scattered over 48 States and the
District of Columbia. This is a somewhat smaller number of plants
than the 5,238 from which such reports were received in July 1937.
In terms of employees, the reduction in coverage is considerably
greater, the number amounting to 150,617 in 1938 as against 222,555
in 1937. This decrease may be accounted for largely by the general
decline in employment throughout 1938, in view of the recession in
business activity.
In view of the reduction in coverage between 1937 and 1938, the
comparisons for the 2 years in this article are based on identical
establishments. Of course, this had the effect of reducing still further
the coverage for each year. In all 20 industries 3,686 identical es
tablishments were included in both years, the number of employees
reported being 182,128 in 1937 and 121,725 in 1938.
Entrance Rates for the Country as a Whole
In July 1938, if a relatively few extreme cases are excluded, the
range in entrance rates of adult male common laborers in the 20
industries combined for the country as a whole was from 12.5 cents
to $1.10 (table 1). However, by far the great majority of the laborers,
namely 77.9 percent, had entrance rates beteeen 40 and 67.5 cents.
As many as one-sixth (16.6 percent) were paid under 40 cents, but
only 5.5 percent received 67.5 cents and over.
Even using a uniform 5-cent interval, the simple distribution of
common laborers according to hourly entrance rates is fairly irregular.
The principal concentration appears in the class of 62.5 and 67.5
cents. However, there are a number of secondary concentrations in
other classes, as the data are influenced by a variety of factors, such
as State or region, race, industry, etc.
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T able 1.—Distribution of Adult Male Common Laborers According to Hourly Entrance
Rates in 20 Industries, July 1938
Hourly entrance rate
La
borers
at en
trance
rate
Cu
Sim mula
ple
tive
per per
cent cent
age
age
150,617 100.0
12.5 and under 17.5 cents. . . .
22.5 and under 25.0 cents---25.0 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 and under 37.5 cents____
40.0 and under 42.5 cents........
49
939
2,713
1,327
6,246
942
5,181
1,207
3,452
3,111
14, 507
(0
0.6
1.8
.9
4.1
.6
3.4
.8
2.3
2.1
9.6
0)
0.6
2.4
3.3
7.4
8.0
11.4
12.2
14.5
16.6
26.2
La
borers
at en
trance
rate
Sim
ple
per
cent
age
Cu
m ula
tive
per
cent
age
42.5 and under 47.5 cents____ 13,918
47.5 and under 52.5 cents____ 20,927
19,256
57.5 and under 62.5 cents____ 19, 214
29,526
67.5 and under 72.5 cents____ 4, 045
72.5 and under 77.5 cents------ 1, 820
380
77.5 and under 82.5 cents-----866
82.5 and under 90.0 cents____
533
90.0 and under 100.0 cents___
443
100.0 and under 110.0 cen ts...
15
9.2
13.9
12.8
12.8
19.6
2.7
1.2
.3
.6
.4
.3
(>)
35.4
49.3
62.1
74.9
94.5
97.2
98.4
98.7
99.3
99.7
100.0
100.0
Hourly entrance rate
1 Less than one-tenth of 1 percent.
Geographical Differences in Entrance Rates
The average hourly entrance rates by States for all industries are
shown in table 2. The State averages range from 24.6 cents in
Georgia to 62.0 cents in Washington. Even within more homogeneous
wage areas there are substantial differences. Thus for 34 States, as a
whole, including the Pacific coast and the States north of Arizona,
New Mexico, Oklahoma, Arkansas, Kentucky, and Virginia, the
average rate is 55.4 cents. The average in most of these States is
more than 50 but less than 60 cents. The Pacific Coast States con
stitute a relatively high wage region with Washington averaging 62.0
cents, Oregon 59.5 cents, and California 57.3 cents. The only other
State above 60 cents is Illinois with an average of 60.6 cents. A num
ber of other States approximate but do not quite equal the average for
California. The Pacific coast has been lumped with other northern
and western States in the subsequent analysis primarily because the
number of workers in the sample is not large enough in this region to
give a stable distribution.
No other subdivision of this area gives rise to distinctive wage
differences that obtain over an extensive contiguous territory. For
example, Maine and Vermont had averages of 45.8 cents and 42.3
cents respectively, while other New England States averaged 52 to
54 cents. South Dakota averaged 44.3 cents, while surrounding
States averaged 49 to 57 cents. Utah averaged 44.8 cents, while
surrounding States are either substantially higher or lower. The
sample is too small to support an analysis of a detailed distribution
of the low wage areas within the northern and western States. Low
averages appear among those States with relatively little industrial
development, or whose urban centers are relatively small.
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W ages a n d H o u rs o f L a b o r
T a b l e 2 . —Average Hourly Entrance Rates of Adult Male Common Laborers in 20
Industries, by State and Region, July 1938
Labor
Estab ers at
lish
en
ments trance
rate
Aver
age
hourly
en
trance
rate
United States__________
4,944 150,617
$0.508
North and W est_______
California............. .......
Colorado..... ................
Connecticut___ ____
D e la w a r e ...___. . .
District of Columbia.
Idaho_____________
Illinois............... .........
Indiana____________
Iowa______________
Kansas.....................
M aine_____________
M ary la n d .......... .......
Massachusetts______
Michigan________ _
Minnesota . . . ____
M issouri... .............
Montana____ ______
Nebraska__________
Nevada______ ____ _
New Hampshire____
New Jersey________
New York____ _____
North D a k o ta _____
Ohio______________
3,869 116,905
8,404
281
49
1,077
91
1,471
48
790
1,179
57
962
16
9,936
247
184
7,920
80
2,259
78
1,590
2,015
61
3,368
85
174
3,075
234
5,643
3,014
79
2,904
120
19
527
825
33
65
7
1,174
37
3,994
157
295
7, 998
164
10
442
9,951
.554
.573
.566
.536
.448
.478
.559
.606
.567
.516
.505
.458
.496
.542
.548
.558
.550
.570
.525
.527
.519
.539
.540
.488
.563
Region and State
Labor Aver
age
Estab ers at hourly
lish
en
en
ments trance trance
rate
rate
Región and State
North and West—Cont.
Oregon____________
Pennsylvania______
Rhode Island______
South Dakota............
U t a h ...___________
Vermont___________
W ashington......... .
West Virginia______
Wisconsin__ . . . __
W yoming__________
South and Southwest___
Alabama___________
Arizona____________
Arkansas__________
Florida__________ _
Georgia____________
Kentucky__________
Louisianá-------- -----M ississippi________
New México_______
North Carolina_____
Oklahoma_________
South Carolina_____
Tennessee__________
Texas______________
Virginia___________
102
411
36
9
24
21
164
82
131
5
4 ,1 8 0
17 , 726
418
129
452
248
5 ,7 3 0
3 ,9 5 6
3 ,6 8 0
81
$ 0 .5 9 5
1 ,0 7 5
85
20
44
80
91
66
92
22
12
61
74
3 3 ,7 1 2
3 ,4 4 0
340
2 ,5 9 8
2 ,3 3 5
1 ,4 8 5
1 ,1 4 5
4 ,7 9 9
1, 722
603
1 ,1 5 7
.3 4 8
.3 9 4
.3 2 5
.2 8 0
.2 7 2
.2 4 6
.4 7 1
.3 3 8
.3 2 8
.3 0 4
.2 7 4
1,477
1,201
2,268
6,913
2,229
.421
.253
.323
.414
.354
41
86
201
100
.5 5 5
.5 2 3
.4 4 3
.4 4 8
.4 2 3
.6 2 0
.5 3 1
.5 0 3
.4 9 9
T a b l e 3 . —Simple Percentage Distribution of Adult Male Common Laborers Accordin
to Hourly Entrance Rates in 20 Industries, by Race and Region, July 1938
North and West
South and Southwest
Hourly entrance rate
All
White
Negro
Others
All
White
Negro
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
.1
2.8
8.0
3.9
17.8
2.7
13.0
2.6
6.2
4.6
16.0
8.8
5.5
4.9
.6
1.3
.5
.7
.1
1.8
3.6
3.8
12.7
1.7
10.6
2.6
6.7
4.2
17.4
11.0
8.1
8.3
1.4
3.0
1.3
1.7
.2
3.6
11.9
4.3
22.4
3.5
12.4
2.7
5.6
4.3
15.6
7.5
3.7
2.1
.1
.1
2.5
1.2
.2
8.2
1.3
42.3
3.0
8.0
11.3
7.7
2.8
3.9
7.1
(0
0)
(0
(')
(0
(0
0)
.2
.7
.3
1.2
1.3
7.8
9.4
16.3
15.1
16. 3
24.9
3.3
1.3
.3
.7
.5
.4
0)
.1
.1
1.1
.7
.2
1.1
1.4
7.8
9.2
16.5
14.7
16. 3
25.7
3.0
1. 3
.3
.8
.5
.4
(0
.8
.7
1.0
.5
9.2
10.7
15.9
18.5
15.3
17.1
6.3
1.8
.3
.4
.1
.2
(•)
.3
4.2
2.5
2.7
11.8
12.1
13.7
20.1
31.0
1.1
.3
.2
(■)
Others
.5
(>)
1 Less than one-tenth of 1 percent.
In general, there is a contrast between average entrance rates in
these northern and western States and in States in the southern and
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166
M o n th l y L a b o r R e v ie w — J a n u a r y 1 9 3 9
southwestern regions, which on the whole are more largely agricultural
and less industrialized than are the northern States. Maryland and
the District of Columbia had average entrance rates distinctly above
that of Virginia and a little higher than that of Kentucky. Kentucky
had an average well above those of other southern States, but less
than those of States north of the Ohio River. Although the Kentucky
average is above those of Maine, Vermont, Delaware, South Dakota,
and Utah, Texas and Oklahoma have averages of 41.4 cents and 42.1
cents, respectively, or distinctly less than those for Kansas, Missouri,
and Colorado, but well above those of adjoining States in the southern
region. In the southern and southwestern regions, as in the North
and West, the sample is inadequate to make subgroupings. In these
regions, the lowest wage level appears in a group of southeastern
States, comprising North Carolina, South Carolina, Georgia, and
Florida. The strip of territory including Virginia, Tennessee, Ala
bama, Mississippi, and Louisiana has a much higher level, but the
highest level outside of Kentucky is found in Texas and Oklahoma.
The average entrance rate per hour in the South and Southwest as
a whole was 34.8 cents.
According to the distribution in table 3, very few common laborers
in the North and West were paid less than 30 cents an hour, and only
3.7 percent received under 40 cents. About one-sixth of the total,
namely 17.2 percent, were paid between 40 and 47.5 cents, but the
greatest concentration, amounting to 72.6 percent, was found within
the 20-cent spread from 47.5 to 67.5 cents. Only 6.5 percent re
ceived as much as 67.5 cents and more.
In the southern and southwestern regions, about one-seventh (14.8
percent) of the total received under 25 cents an hour. Moreover,
approximately one-third, or 35.3 percent, were paid less than 30 cents,
and three-fifths (61.7 percent) received under 40 cents. Around
another third, or 35.2 percent, were found between 40 and 57.5 cents,
but only 3.1 percent were paid 57.5 cents and over.
Differences in Entrance Rates, by Race
Of the 116,905 common laborers covered in the northern and west
ern region, 103,783 were white, 10,766 Negro,-and 2,356 of other races,
the proportion of each in the total amounting to respectively 89, 9,
and 2 percent. The distribution, by race, was considerably different
in the South and Southwest, where the Negroes constituted a majority
of the coverage. Of the 33,712 common laborers, 14,008, or 42 percent,
were white, 18,195, or 54 percent, Negro, and 1,509, or 4 percent, were
of other races.
There was very little difference in the average hourly entrance rates
on the basis of race in the northern and western region. The averages
were 55.5 cents for whites, 54.5 cents for Negroes, and 54.9 cents for
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167
W ages a n d H o u rs o f L abor
others. On the other hand, in the southern and southwestern terri
tory wide differences appear among the averages, the figures being
39.0 cents for whites, 31.6 cents for colored, and 34.3 cents for others.
The margins in rates are, therefore, 7.4 cents between whites and
Negroes and 4.7 cents between whites and other races.
In the northern and western region, establishments reporting whites
only averaged 53.6 cents, or about 3 cents higher than the average
of 50.2 cents for plants reporting Negroes only. On the other hand,
establishments reporting both whites and Negroes averaged 56.6 cents,
or 3 cents higher than even those reporting whites only. Likewise,
plants reporting both whites and races other than white averaged
55.6 cents, but those reporting all 3 colors averaged 60.3 cents.
T a b l e 4 . —Average Hourly Entrance Rates of Adult Male Common Laborers in 20
Industries, by Race and Region, Ju ly 1938
Number of common
laborers at entrance
rate
Color or race
North
and
West
South
and
South
west
All
North
and
West
South
and
South
west
150,617 116,905
33,712
$0.508
$0. 554
$0.348
61,971
504
37
35,292
4,070
12
15,019
3,525
4,261
136
21,042
854
115
3,779
.528
.303
.289
.481
.517
.345
.571
.536
.502
(')
.566
.556
(0
.603
.388
.279
.271
.339
.334
.327
.444
All
Establishments reporting—
Averagl hourly
entrance rate
65,406
4,765
173
56,334
4,924
127
18,798
1 Fewer than 50 employees; no average computed.
In the South and Southwestern territory, plants reporting whites
only averaged 38.8 cents, as compared with 27.9 cents for establish
ments reporting Negroes only, the number of common laborers found
in both types of plants being fairly large. This is a difference of 11
cents. Establishments reporting both whites and Negroes averaged
33.9 cents, or 5 cents less than those reporting whites only but 6
cents more than those reporting Negroes only. Plants reporting
“other” races only averaged 27.1 cents, as compared with about 33
cents for those reporting either whites and Negroes or whites and
“others”, but those reporting all races averaged 44.4 cents.1
Although the difference in hourly entrance rates between white
and Negro common laborers in the South and Southwest explains
part of the variation between the North and West and South and
Southwest wages, it does not obviate the fact that substantial differ
ences also exist in the North and West over the South and South
west for workers of each color. These differences amounted to 16.5
i
This relatively high average is due largely to the fact that it covers plants in the higher-paid industries.
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168
M o n th l y L a b o r R e v ie w — J a n u a r y 1 9 3 9
cents for whites, 22.9 cents for colored, and 20.6 cents for others.
Similar differences are found when a comparison is made of the
North and West and South and Southwest distributions for each color.
Differences in Entrance Rates, by Industry
The average hourly entrance rates for each of the 20 industries
covered are presented on a regional basis in table 5.
T a b l e 5. —Average Hourly Entrance Rates of Adult Male Common Laborers, by Industry
and Region, July 1938
Industry
•
All 20 industries_________ _____
Manufacturing__________ _____ __
Brick, tile, and terra cotta___
C em ent________ __________
Chemicals.___ _____ ________
Fertilizers__________
_____
Foundry and machine-shop
products_______ __________
Glass___ ___________________
Iron and steel_______________
Leather___________ ____ ____
Lumber (sawmills).. .............
Paper and p u lp _____________
Petroleum r e fin in g .________
Rubber tires and inner tu bes..
Slaughtering and meat packmg----------------------------------S o a p .._____________________
Common laborers
Average
hour Establishments
Average hourly
Number of laborers
ly
reporting
entrance rates
at entrance rates
earn
ings
of all
South
South
wage
North South
and
and Total North
and Total North
earn Total and
and South
and South
ers 1
West
West South
West
west
west
west
(2)
4,944 3,869
3,360 2,696
(2)
44
44
(2)
263
311
$0.511
.690
119
93
133
103
.787
238
111
.487
1,075 150,617 116,905 33,712 $0,508 $0. 554 $0.348
664 119,869 92, 702 27,167
768
768
48 7,800 6,689 1,111
26 3,633 2, 786
847
30 3, 756 2,619 1,137
127 3,433 1,544 1,889
.504
.539
.456
.522
.525
.359
.550
. 539
.483
.558
.595
.468
.290
.405
.363
.270
1,015
296
2,458
318
9,440
150
5,161
1,705
(3)
.495
.529
.581
.495
.409
. 524
.485
.634
.505
.511
.533
.597
.508
.547
. 544
.513
.675
(3)
.351
.439
.438
.391
.241
.334
.396
.571
(3)
7,385
«
1, 605
(3)
.567
.590
.583
(3)
.495
(3)
154 15,396 12,484
88 5,784 4,175
2,912
1,609
.480
.459
.508
.489
.357
.380
5,850
2,459
711
592
.502
.471
.526
.499
.308
.354
257 15,352 11,719
3,633
.566
.635
.347
.710
.707
.836
.628
.502
.707
.619
.988
.945
662
99
237
109
347
173
466
135
23
549
89
216
96
224
141
424
85
(3)
113
10
21
13
123
32
42
50
(3)
.691
.736
195
69
169
(3)
(3)
Public utilities_________________
Electric light and power_____
Electric street railways and
city motorbus operation
and maintenance__________
Manufactured and natural gas.
m
(*)
658
322
504
234
.711
(<)
209
127
169
101
Building construction___________
.895
926
669
26
40
26
10,003 8,988
5,913 5,617
23,853 21,395
2,922 2, 604
20,926 11,486
1, 561 1,411
20,918 15; 757
4,302 2,597
284 (3)
8,990
807
6,561
3,051
.347
1 These are United States totals, based on monthly reports on employment and pay rolls collected by
the Bureau.
2 N ot available.
3 Regional figures are not given, in order not to disclose plant identity.
* The average for electric light and power and manufactured gas combined was 85. 3 cents in July 1938.
In the northern and western territory, the manufacturing industry
averages ranged from 46.8 cents for fertilizers to 67.5 cents for petro
leum refining. With the exception of fertilizers, only one other indus
try, namely brick, tile, and terra cotta, averaged less than 50 cents. On
the other hand, petroleum refining ranked first by a considerable mar
gin, the next highest averages being 59.7 cents for iron and steel, 59.5
cents for chemicals, and 58.3 cents for slaughtering and meat packing.
The range of averages in the 9 remaining industries for which figures
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Federal Reserve Bank of St. Louis
Wages a n d
H ou rs o f L abor
169
are shown was from 50.8 cents for leather to 55.8 cents for cement.
The average for all manufacturing industries combined amounted
to 55.0 cents. It is interesting to note that the 3 public-utility indus
tries combined averaged only 50.8 cents, the figures ranging from 48.9
cents for electric light and power to 52.6 cents for electric street rail
ways and city motorbus operation and maintenance. The average
for building construction was 63.5 cents, or 4 cents less than the figure
reported for petroleum refining.
The spread in averages in the southern and southwestern territory
was from 24.1 cents in lumber (sawmills) to 57.1 cents in petroleum
refining. Outside of lumber, only 2 other industries, namely ferti
lizers (27.0 cents) and brick, tile, and terra cotta (29.0 cents) averaged
under 30 cents. As in the northern and western area, the southern
and southwestern average for petroleum refining ranked first by a
wide margin, the next highest figure being 49.5 cents for slaughtering
and meat packing. Only 3 other industries averaged over 40 cents,
namely glass (43.9 cents), iron and steel (43.8 cents), and cement
(40.5 cents). The remaining 6 industries for which figures are shown
ranged from 33.4 cents for paints and varnishes to 39.6 cents for paper
and pulp. For all manufacturing industries combined, the average
was 34.7 cents, which may be compared with 35.7 cents for the 3 publicutility industries combined, and 34.7 for building construction.
In every case, the average entrance rate per hour was substantially
higher in the northern and western than the southern and southwestern
region. For all manufacturing industries combined, the difference
was 20.3 cents, ranging from 8.8 cents in slaughtering and meat pack
ing to 30.6 cents in lumber. The difference amounted to 15.1 cents
for the public-utility industries combined, but it was as high as 28.8
cents for building construction.
For the country as a whole, it is possible to compare the average
hourly entrance rates of common laborers with the corresponding
average hourly earnings of all wage earners in a number of industries.
The differences were between 5 and 10 cents in brick, tile, and terra
cotta and lumber; between 10 and 15 cents in fertilizers, leather, paper
and pulp, slaughtering and meat packing, and soap; between 15 and
20 cents in cement, glass, and paints and varnishes; between 20 and
25 cents in foundry and machine-shop products and electric street
railways and city motorbus operation and maintenance; between 25
and 30 cents in chemicals and iron and steel; between 30 and 35 cents
in building construction; between 35 and 40 cents in petroleum refin
ing; and over 40 cents in rubber tires and inner tubes. The extent of
these differences depends in part on the proportion of common laborers
found in each industry.
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Federal Reserve Bank of St. Louis
170
M o n th l y L a b o r R e v ie w — J a n u a r y 1 9 3 9
From table 6, which presents the distributions for the various indus
tries on a regional basis, it is possible to determine the extent to which
each of the industries had to adapt itself with respect to the 25-cent
minimum provided by the Fair Labor Standards Act. In the northern
and western region, hardly any common laborers were paid under 25
cents an hour in each of the industries. A somewhat different situa
tion, however, was found in the southern and southwestern territory.
In some industries, such as cement, chemicals, iron and steel, paper
and pulp, petroleum refining, and electric light and power, there
were either no common laborers or very few receiving less than
25 cents. In certain other industries, the number paid under 25 cents
was relatively small, namely 1.2 percent in slaughtering and meat
packing, 2.5 percent in leather, 2.7 percent in glass, 3.0 percent in
manufactured and natural gas, 3.1 percent in building construction,
5.1 percent in foundry and machine-shop products, and 7.3 percent in
paints and varnishes. On the other hand, the proportion was con
siderable in the remaining industries, 11.6 percent in electric street
railways and city motorbus operation and maintenance; 16.7 percent
in fertilizers; 26.7 percent in brick, tile, and terra-cotta; and 42.8 per
cent in lumber.
T able 6.-—C u m u la tiv e P e r c e n ta g e D is tr ib u tio n
o f A d u lt
M a le
Com m on
L a b o re rs
A c c o r d in g to H o u r ly E n tr a n c e R a te s , b y I n d u s tr y a n d R e g io n , J u l y 1 9 3 8
Automobile parts
Hourly entrance rate
Under 12.5 cen ts._________________
12.5 and under 17.5 cents___________
17.5 and under 22.5 cents___________
22.5 and under 25.0 cents___________
25.0 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 and under 37.5 cents___________
37.5 and under 40.0 cents___________
40.0 and under 42.5 cents___________
42.5 and under 47.5 cents___________
47.5 and under 52.5 cents______ ____
52.5 and under 57.5 cents___________
57.5 and under 62.5 cents___________
62.5 and under 67.5 cents___________
67.5 and under 72.5 cents___________
72.5 and under 77.5 cents___________
77.5 and under 82.5 cents___________
82.5 and under 90.0 cents___________
90.0 and under 100.0 cents__________
100.0 and under 110.0 cents_________
110.0 cents and over_______________
1 Less than one-tenth of 1 percent.
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Federal Reserve Bank of St. Louis
Brick, tile, and terra
cotta
Cement
Total
South
South
North South
and Total North
and Total North
and
and South
and South
and South
W est west
West west
West w est
1.0
1.0
1.3
1.3
3.3
3.3
3.3
3.3
6.0
18.2
56.9
71.9
84.0
86.7
86.7
100.0
1.0
1.0
1.3
1.3
3.3
3.3
3.3
3.3
6.0
18.2
56.9
71.9
84.0
86.7
86.7
100.0
0)
1.1
3.2
3.9
5.6
7.1
11.4
15.0
18.7
23.7
36.0
50.5
70.3
80.5
97.7
99.0
99.6
99.9
100.0
0.1
.1
.5
.5
1.7
3.5
6.3
12.1
26.3
43.1
66.2
77.2
97.3
98.8
99.5
99.9
100.0
0 1
7.9
22.0
26.7
35.9
46.5
69.8
84.4
93.8
94.0
94.5
94.8
94.8
100.0
1.4
2.3
2.3
8.5
11.8
14.4
28.6
42.8
80.6
86.5
98.9
99.6
100.0
1.2
1.2
8.3
26.2
74.6
82.3
98.5
99.4
100.0
6.1
10.0
10.0
36.8
47.1
58.1
95.7
97.9
100.0
Wages a n d
171
H ou rs o f L abor
T able 6.— C u m u la tiv e P e rc e n ta g e D is tr ib u tio n o f A d u l t M a le C o m m o n L a b o re rs
A c c o r d in g to H o u r ly E n tr a n c e R a te s , b y I n d u s tr y a n d R e g io n , J u l y 1 9 3 8 —
Hourly entrance rate
Total
12.5 and under
17.5 and under
22.5 and under
25.0 and under
27.5 and under
South
South
North South
and Total North
and Total North
dhd
and South
and South
and South
West w est
West
West west
w est
17.5 c e n ts ... _______
22.5 c e n t s __________
25.0 cents___________
27.5 cents___________
30.0 c en ts... . . . . . . .
0.2
4.0
8.8
11.2
11.2
32.5 and under 35.0 cents . _____. . .
13.3
20.2
37.5 and under 40.0 cents___________
40.0 and under 42.5 cents___
_____ 24.4
33.0
40.2
48.2
67.6
95.9
100.0
Foundry and ma
chine-shop products
Fertilizers
Chemicals
Con.
0.3
.3
.9
.9
2.2
4.8
14.7
26.2
54.0
94.1
100.0
0.8
13.2
29.0
36.3
36.3
41.8
64.5
75.6
97.9
98.9
98.9
98.9
100.0
0.6
4.4
9.0
9.4
39.0
39.5
48.6
48.6
56.6
56.7
66.0
74.0
90.0
93.1
98.9
99.5
100.0
0.7
.7
8.2
8.2
9.4
9.4
13.0
13.2
26.6
42.1
77.7
84.6
97.5
98.9
100.0
1.1
8.1
15.9
16.7
64.0
65.0
80.6
80.6
92.2
92.2
98.1
100.0
(0
0.3
.5
1.9
1.9
3.8
4.5
6.6
8.3
21.4
37.1
65.5
79.8
90.1
98.9
99.6
100.0
0)
0)
0.2
.4
1.0
1.3
14.0
30.8
61.8
77.6
88.9
98.7
99.5
100.0
0.3
2.9
5.1
18.4
18.9
35.4
40.5
56.0
69.8
86.4
93.1
97.2
98.3
100.0
110.0 cents and over_______________
Glass
Hourly entrance rate
52.5 and under 57.5 cents___________
i Less than one-tenth of 1 percent.
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Iron and steel
Leather
South
South
South
and Total North
and Total North
and
Total North
and South
and South
and
West South
West
West
west
west
west
0.1
.1
.7
.7
1.1
1.8
2.3
2.7
4.7
18.0
49.1
61.9
92.3
100.0
0.7
.7
.8
2.1
15.9
48.2
61.7
91.9
100.0
2.7
2.7
14.2
14.2
22.6
22.6
31.7
38.8
53.7
58.1
65.9
65.9
100.0
(>)
0.2 ............
.7
.7
.9
0.1
1.5
4.4
.3
2.3
10.6
6.7
14.8
28.8
35.8
41.1
46.9
99.7
99.7
100.0 100.0
0.1
2.5
7.4
7.4
9.7
14.8
40.9
83.4
85.6
97.4
97.4
100.0
0.3
1.6
1.6
1.9
4.8
4.9
17 7
29.8
42.9
56.2
73.9
89.0
100.0
(>)
0)
0.3
.3
.5
5.6
24.5
39.2
52.3
70.8
87.7
100.0
2.5
13.8
13. C
13.8
40.9
40.9
61.7
73. fl
73.6
88.7
100.0
172
M o n th l y L a b o r R e v ie w — J a n u a r y 1 9 3 9
T able 6 .— C u m u la tiv e P e rc e n ta g e D is tr ib u tio n o f A d u l t M a le C o m m o n L a b o re rs
A c c o r d in g to H o u r ly E n tr a n c e R a te s , b y I n d u s tr y a n d R e g io n , J u l y 1 9 3 8 —
Lumber (sawmills)
Hourly entrance rate
Total
Paper and pulp
South
North South
North South
and Total North and
and
and
and South Total and
West South
West west
West South
west
west
0.1
Under 12.5 cen ts,.................
12.5 and under 17.5 cen ts...
17.5 and under 22.5 cen ts...
22.5 and under 25.0 cen ts...
25.0 and under 27.5 cen ts.. .
27.5 and under 30.0 cen ts...
30.0 and under 32.5 c en ts...
32.5 and under 35.0 c en ts...
35.0 and under 37.5 c en ts...
37.5 and under 40.0 c en ts...
40.0 and under 42.5 c en ts...
42.5 and under 47.5 cen ts...
47.5 and under 52.5 cen ts...
52.5 and under 57.5 cen ts...
57.5 and under 62.5 c en ts...
62.5 and under 67.5 c en ts...
67.5 and under 72.5 c en ts...
72.5 and under 77.5 cen ts...
77.5 and under 82.5 cen ts...
82.5 and under 90.0 cen ts...
90.0 and under 100.0 cents..
100.0 and under 110.0 cents.
110.0 cents and over.
Paints and varnishes
Con.
3.5
13.6
19.3
36.4
38.4
46.3
46.5
48.9
51.8
55.8
57.6
62.7
66.3
77.1
99.8
.3
3.0
3.3
7.0
12.3
19.5
22.7
32.0
38.6
58.3
99.6
100.0
100.0
0.3
7.8
30.2
42.8
80.7
84.9
99.2
99.2
99.9
(')0.1
100.0
0.1
.1
.8
.8
1.6
0.1
.1
.1
.1
.2
1.7
5.0
5.1
7.7
9.0
19.1
27.0
50.9
64.8
80.0
91.0
99.3
.2
.4
.4
.7
1.9
11.3
19.1
45.7
61.1
78.0
90.1
99.2
100.0
100.0
7.3
7.3
14.0
15.3
47.9
48.6
72.6
74.6
91.3
100.0
<9
(')0.4
.6
2.2
0)
(')
(0
0.9
4.8
7.0
10.5
27.7
44.3
64.5
83.7
89.8
99.9
28.2
53.2
78.4
86.5
99.9
100.0
100.0
1.2
2.2
3.3
12.2
0.1
.1
1.9
2.5
6.3
15.9
21.7
32.4
75.0
93.6
99.1
100.0
Slaughtering and
Building construc
meat packing
tion
Rub
ber
tires
and
South Soap2
North South
North South
and inner Total North
and
and
Total and South
and
Total and South
West west tubes 2
West South
West west
west
Petroleum refining
Hourly entrance rate
Under 12.5 cents_____ __
12.5 and under 17.5 cents
17.5 and under 22.5 cents. .
22.5 and under 25.0 cents. .
25.0 and under 27.5 cents. .
27.5 and under 30.0 c en ts..
30.0 and under 32.5 cents. .
32.5 and under 35.0 cents. .
35.0 and under 37.5 cents. .
37.5 and under 40.0 cents. .
40.0 and under 42.5 cents. _
42.5 and under 47.5 cents. .
47.5 and under 52.5 cents. .
52.5 and under 57.5 cents. .
57.5 and under 62.5 cents. .
62.5and under 67.5 c en ts..
67.5 and under 72.5 cents. .
72.5 and under 77.5 cents. .
77.5 and under 82.5 cents.
82.5 and under 90.0 cents.
90.0 and under 100.0 cents.
100.0 and under 110.0 cents
UO.O cents and over_____
0.5
.5
.7
1.3
3.0
4.7
21.3
25.2
30.2
51.5
88.6
97.5
100.0
0.2
.2
4.4
8.9
14.1
35.9
90.0
95.9
100.0
1.3
1.3
1.9
3.5
7.5
11.8
47.5
50.5
55.3
75.7
86.5
100.0
2.8
2. 8
7.0
12.3
12.3
12.3
19.3
34.4
58.4
68.3
89.8
100.0
0.1
.3
.3
1 1
13
2.7
2.9
3.8
4.3
8.5
11.1
14.5
33.0
79.1
100.0
0 1
2
1.5
1.5
2.0
2.4
5.8
8.9
10.9
18.1
74. 5
100.0
1 Less than one-tenth of 1 percent.
»Regional figures not shown, in order not to reveal plant identity.
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Federal Reserve Bank of St. Louis
0.3
1.2
1. 2
48
F 2
6.8
8.0
10.9
12.0
19.9
19.9
29.7
100.0
0 7
7
2.9
4.4
7.0
7.4
16.6
20.6
33.0
37.3
53.3
61. 0
83 8
100. 0
11.6
11.6
14.5
14.8
28.8
34.0
47.0
48.4
59.8
71.9
79 2
80 3
88 0
93 Ft
97 0
99 9
100.0
.3
.3
1. 3
1.3
10. 7
16.9
31.1
32. 9
47.7
63. 5
73 0
82 1
84 4
90 1
99 9
100.0
48. 4
48 Ft
57 5
58 7
88 2
90 1
99.1
99.1
99. 5
99. 6
m o
Wages and Hours of Labor
173
T a b l e 6 . — Cumulative
Percentage Distribution of Adult Male Common Laborers
According to Hourly Entrance Rates, by Industry and Region, July 1938— Con.
Electric light and
power
Electric street rail
ways and city motorbus operation
and maintenance
Manufactured and
natural gas
Hourly entrance rate
Total
Under 12.5 cents__________________
12.5 and under 17.5 cents___________
17.5 and under 22.5 cents___________
22.5 and under 25.0 cents___________
25.0 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 and under 37.5 cents___________
37.5 and under 40.0 cents___________
40.0 and under 42.5 cents. _________
42.5 and under 47.5 cents.. ________
47.5 and under 52.5 cents. _________
52.5 and under 57.5 cents. _________
57 5 and under 62.5 c e n t s ________
62.5 and under 67.5 cents___________
67.5 and under 72.5 cents_____ ____
72.5 and under 77.5 cents...... ............ .
77.5 and under 82.5 cents___________
82.5 and under 90.0 cents___________
90.0 and under 100.0 cents__________
100.0 and under 110.0 cents_________
110.0 cents and over_______________
0)
0.2
2.1
2.2
7.7
7.7
14.5
16.0
41.7
53.0
81.3
88.7
92.7
99.6
99.6
99.6
99.6
100.0
South
South
North South
and Total North
and Total North and
and
and South
and South
West South
West west
West west
west
0.1
.1
.4
.4
4.0
4.0
27.8
41.1
74.1
84.3
89.9
99.4
99.4
99.4
99.4
100.0
0,1
.8
7.2
7.6
26.7
26.7
41.7
47.0
77.8
83.7
99.9
100.0
i.i
1.3
3.9
4.4
8.9
10.4
15.0
16.8
31.1
45.1
53.0
68.0
73.4
93.1
100.0
0)
(0
13
1.3
2.0
2.4
4.7
6.8
22.8
38.5
47.4
64.2
70.3
92.2
100.0
9.8
11.6
24.5
28.4
64.2
74.6
98.3
98.3
98.3
98.3
98.3
98.3
98.3
100.0
0.6
.6
2.0
2.0
8.4
8.4
9.5
12.9
32.2
53.5
76.4
87.8
90.0
95.3
99.4
100.0
0.3
.3
1.3
1.3
17.6
43.6
70.7
84.9
87.6
94.2
99.3
100.0
3.0
3.0
10.1
10.1
41.9
41.9
43.6
61.0
93.1
94.6
100.0
1 Less than one-tenth of 1 percent.
Comparison of Entrance Rates Between 1937 and 1938
On the basis of identical establishments, the average hourly entrance
rate of common laborers for the 20 industries combined in the country
as a whole amounted to 51.7 cents in 1938. As the average was 51.5
cents in 1937, it is evident that there was virtually no change between
the 2 years. The same is disclosed by an examination of the figures
for each region. In the North and West, the averages were 55.4
cents in 1937 and 55.9 cents in 1938. The southern and southwestern
averages were 35.3 cents in 1937 and 35.7 cents in 1938. Likewise,
there was little change in the distributions between 1937 and 1938,
for the country as a whole as well as in each region, as may be seen
from table 7.
As regards the individual industries, on the other hand, there are
in some cases pronounced changes, either increases or decreases, in
average entrance rates per hour, between 1937 and 1938. (See table
8.) This is true of the figures for the country as a whole as well as
of those for each region. It is somewhat difficult to account for the
changes, except to state in a general way that in most instances they
are probably due less to changes in rates and more to changes in the
number of common laborers receiving the various entrance rates.
115652— 39------ 12
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M o n th l y L a b o r R e v ie w — J a n u a r y 1 9 3 9
174
7. — Cumulative Percentage Distribution of Adult Male Common Laborers
According to Hourly Entrance Rates in 20 Industries, by Region, July 1937 and
July 1938
T able
[Based on identical establishments]
South and South
west
North and West
Total
Hourly entrance rate
1937
1938
1937
(>)
0.4
1.7
2.1
5.7
6.2
9.5
10.0
12.1
14.6
23.3
34.1
48.5
61.2
73.0
94.6
97.0
98.4
98.7
99.1
99.8
100.0
0)
0.3
1.8
2.5
6.1
6.7
9.8
10.2
12.4
14.7
23.8
33.0
47.1
59.5
72.7
94.3
97.2
98.4
98.7
99.4
99.7
100.0
(0
0)
0)
(')
0.1
.1
.6
.8
1.7
3.2
10.9
21.4
38.0
52.7
67.2
93.6
96.3
97.9
98.3
98.8
99.7
100.0
1938
1937
2.0
8.9
11.2
29.3
31.6
46.5
48.3
55.7
62.6
75.6
87.6
92.3
96.2
97.0
97.9
99. 1
100.0
(')
0)
0.2
.2
.7
.9
2.1
3.5
10.4
19.3
35.4
50.0
66.4
93.3
96.7
98.0
98.4
99.2
99.6
100.0
1938
0.1
1.5
8.7
12.2
28.9
31.9
44.9
46.4
52.4
58.2
75.8
86.1
92.7
96.5
97.2
98.4
99.1
100.0
l Less than one-tenth of 1 percent.
T a b l e 8 . —Average Hourly Entrance Rates of Adult Male Common Laborers, by Industry
and Region, July 1937 and July 1938
[Based on identical establishments]
North and West
Total
Industry
1937
Per
1938 cent of
change
All 20 industries__________ ________ $0.515 $0.517
1937
1938
+ 0 .4 $0. 554 $0. 559
1938
Per
cent of
change
+ 0.9 $0.353 $0. 357
+ 1.1
+ .2
+ .5
+ 2.1
+ .5
+ 2 .5
- 7 .6
Per
cent of
change
.357
+ .6
.272
.408
.363
.261
.259
.406
.363
.276
- 4 .8
- .5
+ 5.7
.363
.447
.450
.364
.246
.375
.393
.588
.375
.461
.443
.408
.249
.368
.399
.579
+3. 3
+ 3.1
- 1 .6
+12.1
+ 1.2
- 1 .9
+ 1 .5
- 1 .5
.505
.501
-.8
+ 3 .4
+ 1 .2
.348
.360
.362
.382
+ 4.0
+ 6.1
.532
.498
+ 4.1
+ 1 .8
.296
.372
.307
.377
+ 3 .7
-j-1.3
.654
+ 4 .6
.341
.358
+ 5 .0
+ 1 .2
-2 .7
.554
.549
.488
.556
.609
.476
.495
.519
.587
.469
.431
.566
.479
.631
.477
.577
.444
.502 + 1 .4
.535 + 3.1
-.3
.585
.498 + 6 .2
-.7
.428
.545 - 3 .7
.482
+ .6
.638 + 1 .1
.508 + 6 .5
.577
.496 +11.7
. 504
.524
.597
.487
.552
.575
.511
.657
.477
.587
. 444
.511 + 1 .4
.539 + 2 .9
.600
+.'5
.508 + 4 .3
.552
.554 - 3 . 7
.511
.675 + 2 .7
.508 + 6.5
—.2
.586
.496 +11.7
.468
.450
.484
.459
+ 3 .4
+ 2 .0
.496
.487
.513
.493
Manufactured and natural g a s...
.487
.476
.507
.480
+ 4 .1
+ .8
.511
.489
Building construction............... ...........
.563
.591
+ 5 .0
.625
Brick, tile, and terra cotta--------Fertilizers__________________ Foundry and machine-shop prodIron and steel___ ___
Leather______ — --
-
-- -
Paints and varnishes___________
Petroleum refining----------------- .
Rubber tires and inner tubes___
Slaughtering and meat packing. _
Public utilities____________________
Electric light and power----------Electric street railways and city
motorbus operation and main-
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.515
. 546
.457
.515
.519
.365
.513
' .549
.467
.515
.525
.355
-.4
+ .5
+ 2 .2
1937
.355
.553
.546
.478
.553
.594
.515
Manufacturing------ ------ - - - - ----------
South and Southwest
W ages a n d H o u rs o f L a b o r
175
It is interesting to note that on the whole there was very little differ
ence between the corresponding figures for the total coverage and that
limited to identical establishments reporting in both 1937 and 1938.
With respect to the total coverage, the averages were 50.8 cents for
the country as a whole, 55.4 cents for the North and West, and 34.8
cents for the South and Southwest, which may be compared respec
tively with 51.7, 55.9, and 35.7 cents for identical establishments.
Similarly, the differences are not very pronounced if the comparison
is made on the basis of distributions. There are few significant differ
ences, however, in the case of individual industries.
Trends of Entrance Rates From 1926 to 1938
Table 9 shows the average entrance rates per hour of common labor
ers in each of the 3 industry groups, namely manufacturing, public
utilities, and building construction for the years 1926 to 1938 in
clusive. It should be noted, however, that the manufacturing group
includes here only 9 industries, for which comparable figures are avail
able continuously since 1926. These industries are brick, tile, and
terra cotta, cement, foundry and machine-shop products, iron and
steel, leather, lumber, paper and pulp, petroleum refining, and slaugh
tering and meat packing. The table also contains figures for all in
dustries combined—i. e., 9 in manufacturing, 3 in public utilities, and
building construction. These averages, it should be remembered, are
not based on identical establishments from year to year, but neverthe
less they are sufficient to show the trend in entrance rates.2
T a b l e 9 . —Average Hourly Entrance Rates of Adult Male Common Laborers in 13
Industries, by Industry Group, 1926 to 1938
J u ly -
1926___________ ____ _______ _______________________
1927_______________________- .........- ...................................
1928_____________________________ _________________
1929______________________________________ ______
1930_______________________________________________
1931_______________________________________________
1932______________________________________________
1933 ____- ......................................... - - ____ __________
1934_________________________________ _____ ________
1935_________________ ____ _________________ ____ _
1936_________ ____ _______________________________
1937__________ ____ _______ ____ _____________ ____ _
1938___________________________ _______________ ___
All in
dustries
covered
$0.426
.424
.428
.432
.429
.403
.355
.333
.420
.430
.434
.514
.509
Manufac
turing in
dustries
cohered
$0.401
.399
.402
.407
.405
.383
.318
.305
.407
.415
.425
.514
.505
Public
utilities
$0.420
.398
.429
.428
.446
.446
.415
.387
.418
.420
.437
.467
.480
Building
construc
tion *
$0.471
.482
.474
.483
.470
426
.399
.383
.455
.4SI
.509
.553
.566
1 For the years 1926 to 1935, inclusive, the figures cover a small amount of construction outside of the
building industry.
1 For explanationsee footnote 6, p. 1508, M onthly Labor Review, December 1937.
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176
M o n th l y L a b o r R e v ie w — J a n u a r y 1 9 3 9
WAGES AND HOURS IN UNION BAKERIES,
JUNE 1, 1938 1
THERE was an increase of 2.3 percent, a rise from $0,826 to $0,845
per hour, in the average wage rate for union workers in the bakery
trades between May 15, 1937, and June 1, 1938. These averages cover
the union members for whom reports were received for both years.2
During the year, however, union organization was extended into cities,
bakeries, and occupations where hitherto there had been no union rates.
While these new agreements usually provided for higher rates than
previously had been in effect, these rates nevertheless were, on the
average, lower than rates in shops which had been unionized for a
longer period. The lower scales for these workers brought under
union agreements for the first time in 1938 were due to the fact that
many of them were for lower-paid occupations and also that a large
proportion of them were located in smaller cities. With the inclusion
of these additional workers 3 the average wage rate was 80.6 cents per
hour on June 1, 1938.
The average rate in New York City was much higher than for the
rest of the country—$1,015 compared to $0,845 for all the cities
covered in both years’ surveys. The much higher rates existing in
shops handling Hebrew bakery products account for most of this
difference. In New York over two-fifths of all the union members
worked in such shops. Their average rate was $1,274 per hour com
pared to $0,823 for other shops in New York.
Table 1 indicates that in both 1937 and 1938 a majority of the total
membership had wage rates ranging between 60 cents and $1.00 per
hour—60.7 percent in 1937 and 62.8 percent in 1938. The upward
movement of wage rates during the year is most apparent in the de
creased percentage of members having rates of under 60 cents, the
percentage falling from 16.4 in 1937 to 12.8 in 1938; and in the in
creased percentage having scales of $1.00 and over per hour, which
rose from 22.9 percent in 1937 to 24.4 percent in 1938.
One-third of the union members covered in both years received
wage-rate increases between May 15, 1937, and June 1, 1938, while
decreases were shown for only 0.3 percent. Increases were reported in
122 out of the total 361 comparable quotations covering both years.
1 This study is one of a series of annual surveys started in 1907 by the Bureau of Labor Statistics, covering
scales in various trades in the principal cities of the United States. The early studies included 39 cities.
The coverage has been gradually extended, reaching 70 cities in the period from 1934 to 1937, and in the
present survey two more cities—Phoenix, Ariz., and Jackson, Miss.—were added. In 17 of these cities,
however, there were no union members working under agreements in the baking trades.
J The percents of change and the averages, presented id this study, are based upon aggregates computed
from 361 quotations which showed comparable data for both years. These quotations covered 24,811 union
members. The membership weights used in the aggregates for each year are those reported for the second
year.
* There were 9,595 members covered in 1938 for whom no rates were obtained in 1937.
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Federal Reserve Bank of St. Louis
177
W ages a n d H ou rs o f L abor
No change was reported in 232 quotations, while only 7 reported
decreases.
T a b l e 1.—Distribution of Union Members in the Bakery Trades, by Hourly Rates
1938 and 1937 1
Classified hourly rates
1938
1937
Average hourly rate------------- --------------------------
$0.845
$0.826
Percent of members whose hourly rates were—
35 and under 40 cents----- --------------------------40 and under 50 cents------------- ------------------50 and under 60 cents.-------------------------------60 and under 70 cents--------------------------------70 and under 80 cents__________________ • . . .
80 and under 90 cents.. . . ________________
90 cents and under $1_____ ... . . ------------$1.00 and under $1.10___________ _________
$1.10 and under $1.20________ ____________
$1.20 and under $1.30______________________
$1.30 and under $1.40______________________
$1.40 and under $1.50______________________
0.2
6.0
6.6
14.1
19.2
16.6
12.9
8.6
5.0
3.5
4.6
2.7
0.5
6.4
9.5
13.4
21.8
12.5
13.0
8.3
4.8
2.8
4.3
2.7
i Based on comparable quotations furnished by unions reporting for both years. Including the quota
tions for which there were no comparable 1937 data, the range of all rates in 1938 was from 35 cents per hour
to $1,571.
In table 2 the rate changes which were reported as becoming
effective between May 15, 1937, and June 1, 1938, have been classified
according to the percentage of the changes. Of the 122 increases
reported, 25 amounted to less than 5 percent of the 1937 rates; 57
amounted to between 5 and 10 percent; 23 amounted to between 10
and 15 percent; and 17 amounted to 15 percent or over. Four of
the increases were of 30 percent or more, the greatest being a 40percent advance in the rate for counters, under the machine-bakery
agreement in Houston.
A majority of the members whose rates advanced during the year
received from 5 to 10 percent more per hour in 1938 than in 1937.
About one-fifth had advances ranging from 10 to 20 percent, and
about 22 percent had increases amounting to less than 5 percent.
Relatively few were benefited by increases which exceeded 20 percent.
T a b l e 2 . —Percent of Change in Union Wage Rates in the Baking Trades Between 1937
and 1938
Number of quota
tions showing—
Percent of change in rate
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Federal Reserve Bank of St. Louis
Percent of total
members affected
by—
Increase
Decrease
Increase
Decrease
25
57
23
10
2
1
4
5
2
7.5
18.4
4.5
2.2
.1
.1
.4
0.2
.1
-4
00
DISTRIBUTION OF MEMBERS IN UNION BAKERIES
BY HOURLY WAGE RATES
PERCENT
OF MEMBERSHIP
PERCENT
OF MEMBERSHIP
JUNE 1,1938
25
25
20
20
15
10
.35
.40
.50
.60
1.20
1.30
AND UNDER
AND UNOER
AND UNDER
AND UNDER
AND UNDER
AND UNDER
.50
.60
.70
1.30
1.40
.40
1.40
ANO UNDER
1.50
CENTS PER HOUR
NOTE:
In clu d es a ll m e m b e r s fo r whom q u o ta tio n s w ere r e c e iv e d in 1 9 3 8 . The p e rc e n ta g e s show n, th e re fo re , a re n o t
id en tica l with th o s e in ta b le i, w h ich in c lu d e s o n ly m e m b e rs f o r whom r e p o r t s w ere r e c e iv e d in b oth 1 9 3 7 ond 1 9 3 8 .
U.S.BUREAU OF LABOR STATISTICS.
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Federal Reserve Bank of St. Louis
1.50
AND UNDER
1.60
179
W ages a n d H o u rs o f L abor
Hours in Union Bakery Trades
On June 1, 1938, over half (54.3 percent) of the union members
covered were on a 40-hour week. The normal working time for 29
percent of the members was over 44 hours, although there were no
scales over 48 hours. Less than 7 percent of the members had regular
work weeks of less than 40 hours. (See table 3.) Full-time weekly
hours of union members in the bakery trades, for whom comparable
reports were received, decreased 0.4 percent between May 15, 1937,
and June 1, 1938, or from 42.2 to 42.1 per week.
Forty hours was the prevailing scale for over half the total member
ship in both years. The proportion of the members having 40-hour
scales, however, increased from 52.1 in 1937 to 54.3 percent in 1938.
None of the members who had 40-hour or shorter weeks in 1937 had
any changes in their hour scales. The proportion of members having
scales of over 40 hours in 1937 decreased from 41.7 percent of the total
to 39.1 percent in 1938.
T a b l e 3 . —Distribution of Union Members in the Bakery Trades, by Hours Per Week,
1938 and 1937 1
Classified weekly hours
Average weekly hours..................................................
Percent of members whose hours per week were—
37J^ hours........... ....................................................
1938
1937
42.1
42.2
0.5
.1
5.1
.5
.4
54.3
4.3
5.7
10.5
.2
18.4
0.5
.1
5.1
.5
52.1
3.4
7.9
11.0
.2
19.2
i Based on comparable quotations furnished for both years. Including the quotations for which there
were no comparable 1937 data, the average weekly hours were 41.9.
Almost 94 percent of the union membership had no changes in
their weekly hours between May 15, 1937, and June 1, 1938. Nine
of the 361 comparable quotations showed increases in weekly scales,
affecting only 0.8 percent of the membership, and 31 quotations
showed decreases which applied to 5.3 percent of the members.
Almost 90 percent (321) of the total quotations reported no change
in hours per week.
Seventeen of the 31 reductions in hour scales were from a 44-hour
week to a 40-hour week. In six instances 48-hour weeks were reduced
to 44 and in one instance to 45 hours. Two quotations showed
decreases from 45 to 42 hours; two from 42 to 39 hours; and three
from 44 to 42 hours per week. Four of the increases in hour scales
were from 42- to 48-hour weeks, and five were from 44 hours to 48
hours.
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Federal Reserve Bank of St. Louis
180
Monthly Labor Review—January 1939
T a b l e 4 . —Amount
of Change in Union Hour Scales in the Bakery Trades, Between
1937 and 1938
Number of quotations
showing—
Percent of total mem
bers affected by—
Increase
Increase
Amount of change in hours per week
2 hours___________________________________ _______
3 hours____ ____ ___________________ _____
4 hours______________
______ _______
6 hours____________________ _ __________ . .
Decrease
5
4
3
5
23
Decrease
0.7
1.2
3.4
0.7
.1
Overtime and Extra Work
Over half of the members were working under agreements which
provided a scale of time and a half for overtime. Time and a third
was specified for nearly 30 percent of the members. A few of the
members had double-time scales (1.8 percent) or specific monetary
rates which were not multiples of their regular rates (2.6 percent) for
excess hours. In 8 quotations it was reported that the agreements
made no provision regarding overtime and in 35 quotations it was
reported that overtime was permitted at the regular rate. A penalty
rate applied in some of these instances for overtime exceeding a speci
fied number of hours per week.
Number of
quotations
No overtime rate provided___ _____________________
Straight tim e____________________________________
Time and one-third_______________________________
Time and one-half________________________________
Double tim e_____________________________________
Specified amounts, nota multiple of the regular rate-
8
35
158
335
7
17
Percent of
members
covered
1. 2
9.7
29. 8
54. 9
1. 8
2. 6
Frequently the agreements provide that no regularly employed
member shall work overtime when substitutes are available, except
in cases of emergency. In some cases a permit from the union must be
secured before overtime may*be worked. Other agreements set a
limit on the amount of overtime permissible for each employee, usually
2 or 3 hours per week. In a number qf cases a specified time, ranging
from 12 to 16 hours during the week and from 24 to 40 hours over the
“rest day,” must elapse before an employee may be called back to
start work on a new shift.
Many of the agreements provide that regular employees shall have
time off with pay for specified holidays. Generally, if work is re
quired on those holidays, the regular overtime rate or double time is
required to be paid. Some of the agreements, recognizing the neces
sity of having fresh baked goods ready for the day following the
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Federal Reserve Bank of St. Louis
181
Images a n d H o u r s o f L a b o r
holiday, allow work at straight time on the actual holiday, but require
the preceding or following day to be taken off. The usual holidays
specified are: Labor Day, Decoration Day, Independence Day,
Thanksgiving, Christmas, and New Years, although Washington’s
Birthday, May First, Election Day, and various local holidays are
occasionally included. Agreements for Hebrew baking generally
provide for several religious holidays.
A provision calling for additional pay for shifts classed as night
work is frequently found in the bakery agreements. The periods
during which this extra pay applies vary rather widely, including
in some instances any shifts starting after 3 p. m., and in others any
work between 10 p. m. and 6 a. m. The night differentials reported
ranged from 5 percent additional to 25 cents per hour premium.
Provisions for a minimum number of hours per week for regular
employees were found in a number of agreements. In some cases it
was further provided that any employee starting a shift should receive
a minimum amount ranging from 4 hours to a full day’s pay.
Membership Covered in the Survey
Effective union scales for bakery workers were reported in 55 of the
72 cities canvassed in 1938. The total union membership covered was
34,406 as compared with 21,167 in 1937.
Table 5 shows the number of union members for whom reports
have been received each year since 1918. The membership reported
declined each year from 1921 to 1933 and then began to increase
rapidly. The large increase shown in 1938 brought the current
total to more than three times the membership reported in 1933.
T a b l e 5 .-—Union Members in Bakery Trades Covered Each Year, 1918 to 1937
Year
1918________
1919________
1920________
1921 _______
1922________
1923________
Members
18,376
21,477
24,721
24, 398
22,808
21,574
Year
1924________
1925________
1926________
1927________
1928.......... . . .
1929________
Members
21,306
20,805
20, 510
19,170
18, 673
17,468
Year
1930..............
1931________
1932________
1933________
1934...........
1935________
Year
Members
18, 301
16,403
13,678
10,960
12,722
14,418
1936________
1937________
1938________
Members
15,086
21,167
34,406
Rates of Wages and Hours in Each City
Union rates per hour and hours per week in the bakery trades, by
city and occupation, on June 1, 1938, are shown in table 6.
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Federal Reserve Bank of St. Louis
182
M o n th l y L a b o r R e v ie w — J a n u a r y 1 9 3 9
T a b l e 6 . — Union
Scales of Wages and Hours in the Bakery Trades, June 1, 1938
Rate
per
hour
City, type of baking, and
occupation
Hours
per
week
$0. 550
.500
.400
.350
40
40
40
40
1.188
1.125
48
48
Baltimore, Md.
.
Boston, Mass.
Hebrew baking:
Foremen___ ____ __________
Third hands........................ .......
1.271
1.167
1.063
48
48
48
Buffalo, N. Y.
Hand and small machine shops:
D ay work:
Oven hands or mixers___
Bench hands_____ ______
N ight work:
Oven hands or mixers___
Bench hands_____ ______
Machine shops:
Foremen.....................................
Mixers, ingredient scalers, or
Peel-oven men........................
Bench hands, divider men, or
traveling-oven men_______
Machine or molder m en........ .
Foreladies___________ ___ _
Mixer’s helpers, wrappingmachine operators, assem
bly helpers............ ..............
Bench helpers, oven helpers,
wrapping and slicing help
ers, flour handlers, friedcake machine men, yeast
doughnut men____________
Pan greasers or machine hand
helpers___ ____ _____ _____
Roll dividers, female____ . . .
Roll panners, female________
Roll wrappers, fried packers,
icers, or packers, female____
Hebrew and Polish baking:
N ight work:
First hands.—................... .
Second hands___________
.771
.729
48
48
.771
.729
48
48
.875
40
.800
40
.750
.700
.675
40
40
40
.650
40
.600
40
.550
.500
.450
40
40
40
.430
40
.813
.771
48
48
1.179
1.179
1.048
42
42
42
Butte, Mont.
Foremen or mixers_____________
Ovenmen______________ _______
Bench hands__________________
Chicago, III.
Union A: *
Retail bakeries:
First hands, spongers, or
ovenmen_____________
Second hands___________
Helpers_____ __________
Union B:
Retail bakeries:
First hands_____________
Second hands___________
Wholesale bakeries:1
First hands, ovenmen, or
spongers.........................
Second hands......................
See footnotes at end of table.
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Federal Reserve Bank of St. Louis
Rate
per
hour
Hours
per
week
Chicago, III.—Continued
Atlanta, Ga.
Mixers________________________
Bakers________________________
Bakers’ helpers._______________
Packers or slicers, fem ale.. . ____
Hebrew baking:
Foremen or ovenmen_____
City, type of baking, and
occupation
2.900
2.850
2. 700
48
48
48
3.833
3.792
48
48
4. 850
4. 800
40
40
Union C:
Machine shops:
Mixers, ovenmen, or divider m e n ..._________
Traveling-oven feeders__
Traveling-oven dumpers.
Mixers’ helpers_______
Bake-shop helpers______
Bohemian baking:
Small shops:
First hands_____________
Second hands___________
Large shops:
First hands................ .
.
Second hands......................
Greek baking: i
Hand shops:
First class or ovenmen___
Second class, mixers, or
bench hands................ .
Machine shops:
First class or ovenmen___
Second class, mixers, or
bench hands....... ............
Hebrew baking:
Foremen or first hands______
Second hands____ __________
Third hands.............................
Italian baking: i
Hand shops:
First class or ovenmen. __
Second class, mixers, or
benchmen...................... .
Machine shops:
First class or ovenmen___
Second class, mixers, or
benchmen____________
Polish baking: i
Retail bakeries:
Foremen or spongers____
Second hands__________
Wholesale bakeries:
Foremen or spongers-----Second hands___________
$0.800
.750
.700
.650
.550
40
40
40
40
40
.833
.771
» 48
*48
1.000
.925
•40
*40
.646
48
.583
48
.825
40
.758
40
« 1.188
«1.125
• 1.000
48
48
48
.646
48
.583
48
.825
40
.758
40
.875
.750
48
48
1.063
.938
32
32
.945
.863
.800
.625
.620
.520
.480
.400
40
40
40
40
40
40
40
40
.833
.750
.667
48
48
48
.854
.792
.667
48
48
48
.820
.760
40
40
.710
.650
.600
.600
.430
40
40
40
40
40
Cincinnati, Ohio
Foremen or first hands____ _____
Ovenmen or mixers_____________
Bench or machine hands ______
Helpers_______________________
Machine operators_____________
Packers or shippers_____________
Chute men___________________
Helpers, female________________
Cleveland, Ohio
Hand shops:
Union A:
First han ds.......................
Second hands___________
Helpers________________
Union B : 7
Retail bakeries:
First hands_________
Second hands_______
Third hands................
Machine shops:
Mixers or ovenmen_________
Bench or machine hands-----Mixers’ helpers, molders, or
dividers__________________
Oven feeders _____________
Slicers, male_______________
Helpers, male _____________
Helpers, female........................ .
183
W ages a n d H ou rs of L abor
T able
6
.— Union
Scales of Wages and Hours in the Bakery Trades, June 1, 1938— Con.
City, type of baking, and
occupation
Rate
per
hour
Hours
per
week
Second hands......... ....................
Third hands___ ___________
Hebrew baking:
First hands........- ____ _______
Second hands......... .................. -
$0. 792
.750
.646
48
48
48
1.167
1.063
48
48
Davenport, Iowa
(See Rock Island (111.) district.)
Denver, Colo.
Hand shops:
D ay work:
Foremen_______________
Bench or machine hands.
Night work:
Foremen.............. ................
Machine operators______
Machine shops:
D ay work:
Shift foremen---------------Mixers or ovenmen--------Bench or machine hands.
Night work:
Shift foremen___________
Mixers or ovenmen_____
Bench or machine hands.
Part day and part night work:
Shift foremen___________
Mixers or ovenmen_____
Hebrew baking:
Foremen--------- ------------------Second hands------- ------------Bench hands----------------------Helpers--------- -------------------Des Moines, Iowa
Hand shops : 1
First hands or foremen______
Second hands or henchm en...
Third hands or helpers______
Machine shops: *
Foremen____________ ______
Mixers or ovenmen...... ............
Machine men, including machine wrappers_________ _
Helpers or pan greasers--------Hand wrappers or packers—
.6 8 8
48
48
.896
.750
48
48
.975
.880
.825
40
40
40
1.050
.955
.900
40
40
40
1.013
.918
40
40
.938
.894
.871
.653
48
48
48
48
.833
Second hands......... ............
Helpers....... ............ .............
See footnotes at end of table.
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Federal Reserve Bank of St. Louis
Hours
per
week
Polish baking:
First hands, ovenmen, or
mixers____________ ____
Second hands or benchm en...
Third hands........... ...................
$0.958
.813
.521
48
48
48
.910
.800
.750
.625
40
40
40
40
40
.985
.875
.825
.763
.700
40
40
40
40
40
.680
.660
.600
.500
1040
1040
.841
.659
.614
.614
.534
.523
44
44
44
44
44
44
.850
40
.750
40
.655
.650
40
40
.600
.550
40
40
.700
40
.650
40
D u lu th , M in n .
D ay work-.
Foremen........ ........................... .
Mixers or ovenmen_______
Bench h a n d s ...____________
Machine men____ _________
Helpers........................................
Night work:
Foremen................ ................... .
Mixers or ovenmen_________
Bench hands..............................
Machine m en____ ____ ____
.6 8 8
E rie , P a .
8 .604
8 .542
48
48
48
.850
.750
.700
40
40
40
8 .6 8 8
.650
.575
.525
40
40
40
.800
.700
.550
.400
44
44
44
44
.800
44
.750
.750
.700
.550
44
44
44
44
.750
.650
.600
44
44
44
1.400
1.356
1.289
.667
45
45
45
45
Detroit, Mich.
Union A:
Mixers or ovenmen_________
Second hands or benchm en...
Helpers, male_________ ____
Helpers, female_____________
Union B:
Company A:
Mixers or benchmen____
Mixers’ or henchmen’s
helpers------ ------ --------Machine men__________
Machine men’s helpers...
Helpers, female............... .
Company B:
Mixers, mixers’ helpers,
or benchmen_________
Machine m e n . . . . ---------Machine men’s helpers.. .
Hebrew baking:
Night work:
First hands:
1 oven______________
Rate
per
hour
D e tr o it, Mich—Continued
Cleveland, Ohio—Continued
Bohemian baking:
City, type of baking, and
occupation
Mixers____ _______ _______ _
Bench hands___________ ___
Helpers or wrappers________
10 40
1040
Houston, Tex.
Machine shops :11
Foremen.............. .......................
Mixers, ovenmen, or spongers.
Benchmen or machine m en ...
Counters_____________ _____
Wrappers_____ ____________
I n d ia n a p o lis, In d .
Union A:
• Company A:
Mixers, ovenmen, or oven
operators_____________
Oven feeders or dumpers,
b e n c h or m a c h in e
hands, head wrappers
or slicers_______ ______
Wrappers, packers, or
bake-shop helpers..........
Assistant head checkers..
Checkers or flour dump
ers.----------- ---------------Checkers’ helpers_______
Company B :
Mixers....................... ...........
1 st oven hands, dividers,
or molders........... ............
Mixers’ helpers, 2 d oven
h a n d s , w r a p p in g machine operator______
Shipping-room packers or
helpers................... ...........
Roll shop:
First bench hands or
ovenmen_________
Second bench hands..
Helpers....... ................ .
leers or wrappers____
Company C:
Mixers or travelmg-oven
men...... .............................
Head checkers..................
Molders. dividers, wrap
pin g -m ach in e opera
to r s , or b a k e - s h o p
helpers....................... .......
Mixers’ helpers...................
Packers or haud wrap
pers............ ........................
.625
40
.500
40
.700
.650
.500
.450
40
40
40
40
.725
.700
40
40
.550
.525
40
40
.500
40
184
M o n th l y L a b o r R e v ie w — J a n u a r y 1 9 3 9
T able 6.— Union Scales of Wages and Hours in the Bakery Trades, June 1, 1938—Con,
City, type of baking, and
occupation
Rate
per
hour
Hours
per
week
City, type of baking, and
occupation
Indianapolis, Ind —Continued
Madison, Wis.—Continued
Union A—Continued.
Company D:
Mixers, molders, ordividers__...................................
Peel ovenmen__________
Stockroom men..... .........__
Wrapping-machine
operators........ .................
Traveling-oven men or
mixers, helpers________
Hake-shop helpers.............
Packers................................
Union B:
D ay work:
Foremen_____________
Mixers or henchmen____
Night work:
Foremen............ .............. .
Mixers or henchmen____
Machine shops—Continued.
Machine m en____________
Bench hands....................... .......
Helpers___________ _____ - .
$0. 700
.680
.625
40
40
48
.620
40
.600
.550
.500
40
40
40
.781
.625
48
48
.833
.729
48
48
Kansas City, Mo.
D ay work:
F orem en..________________
Mixers, spongers, ovenmen,
or drawers______________ .
Bench hands_________ _____
Helpers, m a le ..____________
Helpers, female_____________
Night work:
F orem en... _______________
Mixers, spongers, ovenmen,
or drawers_______________
Bench and under hands_____
Hebrew baking:
D ay work:
Foremen_________ _____
Mixers or ovenmen_____
Bench hands___________
1.063
40
.975
.913
.450
.400
40
40
40
40
1.188
40
1 .1 0 0
1.038
40
40
.989
.911
. 856
45
45
45
.750
.750
.700
40
48
40
.650
.625
.600
.600
.550
.500
.450
40
40
48
40
40
40
40
Little Rock, Ark.
Mixers or ovenmen . . . . . . . .
Head checkers____________ ____
Dividers________ ______________
Benchmen or molding-machine
operators____________ ______
Stock-room clerks _____________
Assistant checkers___________ . _
Wrapping-machine operators____
Twisters____________ _______ _
Helpers, after 6 months_________
Helpers, first 6 m onths............ .......
Los Angeles, Calif.
Hand shops:
Mixers___ ______ __________
Ovenmen________ _________
Bench hands_______________
Machine shops:
Foremen._____ _________ . . .
Mixers___________ _________
O venm en.. . . ____________
Bench or machine hands____
H e l p e r s . .............................
Bench or machine hands“
helpers__________________
Wrapping and shipping de
partment:
Machine men or checkers.
Helpers________________
Hebrew baking:
First hands......... ...................
Second hands_____________
.909
.864
.773
44
44
44
1.050
.950
.850
.750
40
40
40
40
40
.675
40
1 .0 0 0
See footnotes at end of table.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Hours
per
week
$0.813
.784
.675
40
40
40
.792
.625
48
48
48
.563
.375
40
40
.771
.667
.625
.583
.521
48
48
48
48
48
w . 925
.800
.800
.750
.750
.625
40
40
40
40
40
40
.872
.787
.702
47
47
47
.902
.817
.732
47
47
47
.800
45
.667
.622
.533
45
45
45
.900
is 40
.750
is 4 0
.700
is 4 0
.650
.600
15 40
15 4 0
.550
1540
1.354
1.250
48
48
1.050
.925
.775
40
40
40
Manchester, N. II.
Foremen or mixers
__________
Second hands____ _____ ________
Bench hands_____________ _____
.6 8 8
Memphis, Tenn.
Mixers, ovenmen, second hands,
bench hands, machine men, or
wrapping-machine operators___
Milwaukee, Wis.
Hand shops:*
Foremen--------- ------ -----------First bakers___________ ____
Second bakers______________
Third bakers___________ ___
Helpers____ ______ _________
Machine shops : 1
Foremen__ _
__
Mixers____ ________________
Ovenmen, class 1___________
Ovenmen, class 2___________
Bench hands_______________
Helpers___________ _______
Hebrew baking:
D ay work:
Bench hands, first____ _
Bench hands, second____
Bench hands, third_____
N ight work:
Bench hands, first.............
Bench hands, second____
Bench hands, th ir d ____
Minneapolis, Minn.
Hand shops:
Forem en.__ . _______ _ __
Sponge and dough mixers,
ovenmen, or traveling-oven
operators________________
Bench hands_______________
Oven helpers_______________
Machine shops: *
Foremen___ _ ______ ____
Sponge and dough mixers,
ovenmen, or oven operators------------- -- -------------Bench hands, dividers, molder men, automatic bunmachine operators.:_______
Dough-room men or traveling-oven feeders and dumpers_____ _ ___
______
Oven helpers____________ _
Twisters, molders, dough
panners, or bench hand
helpers_________ _______
Moline, III.
.700
.600
40
40
1.313
1.188
i* 40
12 40
Madison, W is!3
Machine shops:
Foremen........................... ...........
Ovenmen, mixers, or spongers..............................................
Rate
per
hour
.938
48
.838
40
(See Rock Island (111.) district.)
Newark, N. J.
Union A:
Foremen or ovenmen_______
Second hands or mixers___ _
Union B:
Foremen, ovenmen, or mixers---------------------------------Bench hands_______________
Third hands___ _____ _ _
185
W ages a n d H ou rs o f L a b o r
T a b l e 6 .— Union
Scales of Wages and Hours in the Bakery Trades, June 1, 1938—C o n .
City, type of baking, and
occupation
Rate
per
hour
Hours
per
week
$0.750
.713
.675
48
48
48
1.083
.625
48
48
48
.625
. 583
.520
it 48
is 4 8
16 4 8
1 .0 0 0
Bench hands_______________
New Orleans, La.
Small shops:
Foremen__________________
Bench hands or second hands.
New York, N. Y.
Union A:
“ 5-day” large bakeries:
1.050
.750
40
40
40
40
.950
.740
.680
40
40
40
1. 000
.900
.700
40
40
40
.950
.850
.775
.725
.650
.575
.450
15 40
is 4 0
u 40
is 4 0
H40
11 40
1.250
1 .1 0 0
“ 6 -day” large bakeries:
Mixers or ovenmen. ------Bench hands, A ________
Bench hands, B ---- -------Small bakeries:
Helpers________________
Union B: i
Ovenmen__________________
Helpers___ _______________
Wrappers, m ale------ -- ------Wrappers, female_________ Union C:
Helpers____________________
Bohemian baking : 17
Small shops:
First hands or mixers----Second hands or bench
hands_____ __________
Large shops:
Second hands or bench
hands________________
French and Italian baking:
D ay work:
Third hands or helpers...
Night work:
Second h a n d s.. . . ____
Third hands or helpers.. .
German-American baking:
Hand shops:
Union A:
Third hands or helpers--------- ------------Machine shops:
Mixers or ovenmen............
Helpers...................... ...........
See footnotes at end of table.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Hours
per
week
40
40
40
1 .0 0 0
35
.929
35
1.143
35
1.071
35
.933
.889
.844
45
45
45
1. 0 0 0
42
42
42
.952
.905
Hebrew baking:
Hand shops:
Union A:
First hands or ovenm en_____________ 1» $1. 333
Second hands_______ is 1 . 2 0 0
Third hands or help19. 933
ers......... .....................
Union B:
First hands or forem en............... ............
1.238
Mixers or ovenmen.
1.175
Second hands..............
1.075
Helpers_____________
.850
Unions C, D , E, and F:
1.467
First hands..... ............
1.333
Second hands............ .
Helpers____________
.933
Machine shops:
First hands____________
1. 571
1.429
Helpers, class A ________
1 .0 0 0
.933
Helpers, class B ________
45
45
40
40
40
40
45
45
45
42
42
42
45
Oklahoma City, Okla.
D ay work:
Foremen__________________
Mixers or ovenmen_________
Bench or machine m en______
Helpers (1 year service or
longer)._____________ ____
Night work:
Mixers or ovenmen_________
.900
.800
.700
40
40
40
.600
40
1.025
.875
.775
40
40
40
.800
.700
.650
70 44
so 4 4
20 4 4
.600
2044
.500
.370
20 4 4
.911
.733
45
45
.976
.857
42
42
.786
42
.800
.750
40
40
.710
.700
.660
.650
.625
40
40
40
40
40
.550
.540
.530
40
40
40
Omaha, Nebr.
1540
1.050
.950
.750
Foremen______________________
Dough mixers or ovenmen______
Benchmen or cake mixers_____ _
Machine men, dough mixers’
helpers, ovenmen’s helpers, or
order checkers________________
Ingredient scalers, bake-shop
helpers, stock-room men, packers, or wrapping-machine helpers__________________________
Peoria, III.
Hand shops:
Foremen___________________
Benchmen_________________
Machine shops:
Foremen___________________
Spongers or ovenmen_______
Benchmen or machine operators______________________
Philadelphia, Pa.
.938
.625
40
40
40
.950
.850
5 40
5 40
1 .0 0 0
Helpers____________
Union B:
First hands or oven-
Rate
per
hour
New York, N. Y .—Continued
New Haven, Conn.
Foremen or mixers. ___________
Ovenmen (assistant foremen)-----Benchmen_____________________
Hebrew baking:
City, type of baking, and
occupation
.750
M0
.872
.769
.615
is 39
18 39
18 39
Traveling-oven supervisors >.........
Mixers *___________________ . . .
Benchmen, divider operators,
molder operators >____________
Ingredient scalers *................... .......
Traveling-oven feeders L ........ .......
Mixers’ helpers *____ ___________
Route packers i________________
Bench helpers, bakery helpers,
wrapping-machine truckers, roll
baggers, flour blenders, or pilers i .
Wrapping-machine men i...............
Pan greasers L _........................... .
186
T able
M o n th ly L a b o r R e v ie w — J a n u a r y 1 9 3 9
6
.—
Union Scales of Wages and Hours in the Bakery Trades, June 1, 1938— Con,
City, type of baking, and
occupation
Bate
per
hour
Hours
per
week
City, type of baking, and
occupation
$0.410
40
1.309
1. 247
1.143
.727
45
45
45
45
Machine shops—Continued.
Company B—Continued.
First benchmen_________
B e n c h m e n , m o ld e r s ’
helpers, or mixers’ help-
. 955
.841
. 600
40
40
40
Philadelphia, Pa .—Continued
Twisters, fem ale 1.................. . .........
Hebrew baking:
First hands, foremen, or oven
hands........................................
Second hands or mixers_____
Third hands____ __________
Fourth hands.................... .........
.800
.750
. 650
.600
. 530
.420
40
40
40
40
40
40
1.422
1.356
1.267
22 37^
22 3 7
.933
.889
.844
.556
22 W i
22 3 7 \/2
22 3 7 y2
22
22
37J^
373i
.909
.625
.500
.409
23 44
23 44
23 44
23 44
1.050
40
40
40
Portland, Oreg.
Hand shops:
Foremen__________________
Mixers or ovenmen_________
Bench hands______________
Machine shops:
Foremen_________ . . . ___
Mixers or ovenmen_________
Bench hands or machinemem.
Flour blenders___ _________
Pan greasers______
...
1 .0 0 0
.900
1 .1 1 1
1.056
1 .0 0 0
.833
.778
36
36
36
36
36
Providence, R. I.
Hand shops:
Foremen or ovenmen_______
Second hands, bench hands,
or mixers________________
Machine shops:
Company A:
Mixers_________________
Ovenmen, dividers, or
benchmen____________
Molders or ingredient
scalers (assistant mixers)___ ______________
Mixers’ helpers_________
Ovenmen’s and molders’
helpers or flour dumpers______________ ___
Pan greasers____ ______
Company B:
Head mixers______ ____
Second m ixers.. . ______
Ovenmen or divider operators_______________
Molder-machine operators............................. .......
See footnotes at end of table.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
.938
48
.875
48
1 .0 0 0
36
.889
36
.833
.722
36
36
. 694
.611
36
36
1 .0 0 0
40
40
.875
Bench hands, ovenmen, or head
Helpers....................... ...........
Portland, Maine
Machine shops:
Foremen_____ ____________
First hands____________ ___
Second hands_______ _____ _
Helpers_________________ . .
$0. 700
40
650
!500
40
40
.644
is 4 0
619
.509
14
Reading, Pa.
Pittsburgh, Pa.
Mixers or ovenmen 22___________
Benchmen or machine hands 21_.Helpers 2 1 __________ __ ___
Checkers 21__________ ____ _ . .
Packers 21_____________________
Helpers, female 21__________ ____
Hebrew baking:
First hands or ovenmen_____
Second hands or mixers_____
Third hands or benchmen___
Polish baking:
First h a n d s_____ _ _______
Second hands______________
Third hands___ . . _ . . . . .
Helpers.____ _______ ____ .
Hours
per
week
Providence, R. 7.—Continued
Phoenix, Ariz.
Foremen, or bakers_____________
Bench hands__________________
Helpers____ . . _____ ___________
Rate
per
hour
.800
40
.750
40
_ .
is 40
40
Rochester, N. Y.
Hand shops :
1
Second hands, ovenmen, or
Third hands, bench hands,
or machine hands_________
Semimachine shops : 1
Second hands, mixers, or
ovenmen___ ______ __ ___
Large machine shops:
Divider m en__________ ____
Machinemen,
moldermen,
bench hands, ovenmen, assemblymen, or batchmen...
Pan greasers, flour handlers,
ov en helpers, m achin e
hands’ helpers, bench helpers, wrapping-machine operators, bread rackers, or
checkers_________________
Wrapping or slicing helpers...
Hebrew baking:
Third hands_______________
Rock Island (III.) district
.833
48
.760
48
.729
48
.909
44
.830
795
.750
44
44
44
850
.800
40
40
.750
.700
40
40
.600
.550
40
40
1.109
784
48
48
48
.850
.750
.700
48
48
48
. 904
.798
.700
48
48
48
1
Hand shops:
D ay work:
Foremen_______________
Mixers or ovenmen_____
Benchmen_____________
Night work:
Mixers or ovenmen____ _
Machine shops:
Foremen.................................. .
Mixers, peel-oven men, or
bench foremen____________
Machine men, mechanicaloven men, or benchmen___
Wrapping- and stockroom
foremen, shipping clerks, or
wrapping-machine operators....... ....................................
Checkers________________ ..
Stockroom men, packers, or
wrapping-machine helpers..
2‘. 850
44
2k 750
44
2<. 700
44
2«. 600
24. 600
24 500
24 550
44
48
44
44
24. 500
24 500
44
48
24. 350
44
24. 385
44
Hand wrappers or icers, feHand wrappers or icers, female (after 6 months)_____
187
W ages a n d H ou rs o f L abor
T able
6
.—
Union Scales of Wages and Hours in the Bakery Trades, June 1, 1938— C o n .
City, type of baking, and
occupation
Rate
per
hour
Hours
per
week
City, type of baking, and
occupation
S t. L o u is , M o .
Scranton, P a.—Continued
Hand shops:
Foremen______ ______ ______
Second hands or bench hands.
Machine shops:
Foremen____ ______________
Ovenmen or spongers_______
Assistant spongers.....................
First bench hands__________
Bench hands or machine
hands___________________
Counters.............................. .......
Helpers____________________
Wrapping and slicing-ma
chine operators... _______
Hebrew baking:
Hand shops:
Foremen, bakers, or ovenmen________ _________
Second hands___________
Third hands____________
Machine shops:
U tility m en____________ _
Peel-oven tenders________ ..
Molders__________________
M ix e r s ...____________ _____
Dividers__________________
Flour blenders___________.
Mixers’ helpers_____________
Pan setters or pan greasers___
Molding-machine helpers . . .
$0. 833
,750
is 48
18 48
1.155
1. 050
.998
.971
18 40
18 40
18 40
18 40
.945
.788
.761
is 40
18 40
is 40
.500
is 40
1.104
.938
.750
48
48
48
.729
.667
.646
48
48
48
.900
.750
40
40
.700
.650
. 600
.700
40
40
40
40
.600
40
.525
40
.781
.677
625
48
48
48
.909
.800
.700
.500
44
44
44
44
S a l t L a k e C i t y , U ta h
Hand shops:
Foremen______ _________ .
Ovenmen or doughmen... . . .
Bench hands_______________
Machine shops:
Foremen_________________ _
Mixers or ovenmen_________
Bench hands or machinemen..
First-year helpers__________
25. 935
25.874
42
42
25 1.157
25 1 . 1 1 0
25 1. 072
251. 017
25.853
36
36
36
36
36
.962
.864
42
42
1.036
.931
39
39
.646
.571
.542
48
48
48
S c r a n to n , P a .
Hand shops:
Mixers.......... ..............................
Mixers’ helpers...........................
Bench hands...............................
See’footnotes at end of table.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
$0.875
.865
.815
.760
.710
.710
.685
.660
.600
.575
.575
.500
40
40
40
40
40
40
40
40
40
40
40
40
1.180
36
1 .1 2 0
1.050
36
36
.772
.883
36
36
.742
.853
36
36
.6 8 8
.625
.521
.417
48
48
48
48
.700
.700
.700
.670
.650
.610
.570
40
40
40
40
40
40
40
.570
.550
40
40
.530
.480
.420
.400
40
40
40
40
2« 1 . 1 0 0
26 1 . 050
Bench hands_____________ . . . 26 1 . 0 0 0
Shipping clerks, stock clerks,
.750
flour blenders, or packers______
.700
Helpers _________ _____ _______
.650
Bread wrappers (after 2 months). .
Cake and cookie wrappers, female
.480
(after 2 months) ..........................
40
40
40
Traveling-oven tenders. ___
Helpers, extra______________
Foremen____________ ________
Mixers, ovenmen, or machine
m en______________ _______ _
Bench hands__________________
Helpers (day work):
1 year’s experience__________
2 years’ experience__________
Helpers (night work) :
1 year’s experience__________
2 years' experience__________
South Bend, Ind.
Small shops:
First hands________________
Second hands___
. . ....
’ Third hands___ ________ .
^Helpers_______ ____________
Large shops:
Mixers_______ _________ . . .
Dividers or head benchmen. . .
Peel-oven men___________ . .
Molder m en______________
Bench hands____ __________
Traveling-oven feeders___ . .
Mixers’ helpers_____________
Traveling-oven dumpers or
molders’ helpers__________
Checkers__________________
Bake-shop helpers or conveyor
m en_____________________
Packers____ ________ _____
Slicers_____________________
Stale checkers______________
Spokane, Wash.
Foremen, mixers, or ovenmen____
S a n F r a n c is c o , C a lif .
Small shops (retail):
Foremen, ovenmen, m ixers.__
Bench hands___________ . . .
Large shops (wholesale):
Foremen or ovenmen______
Mixers____ ________________
Bench hands_____ ________ .
Flour blenders_____________
Helpers (after 1 year)_______
French and Italian baking:
Hand shops:
Foremen, ovenmen, or
mixers_____ _____ ____
Bench hands___________
Machine shops:
Foremen, ovenmen, or
mixers_______________
Bench hands___________
Hours
per
week
Seattle, Wash.
S t. P a u l, M in n .
Hand shops:1
Foremen________ _________
Mixers or ovenmen_________
Bench hands..............................
Machine shops:
Foremen......................... ............
Mixers, ovenmen, or spongers.
Benchmen, dough-room men.
molders, or dividers______
Oven feeders or dumpers____
Ingredient scalers, A ________
Ingredient scalers, B ______ .
Bench helpers, doughnutmachine operators, or wrapping-machine operators____
Wrapping and conveyor helpers______________ ________
Rate
per
hour
40
40
40
40
Springfield, Mass.
Foremen_________________ . . . .
Second hands, mixers, or ovenBench h an ds._________________
.853
48
.749
.645
48
48
.750
.750
.700
.680
.660
44
44
44
44
44
.660
44
Toledo, Ohio 1
First mixers______ ._ __ _____
Runner-in men------------------------Bench hands, bread____________
Bench hands, rolls_____________
Second mixers_______ _____ ____
Peeler-out men, dividers, molders, or traveling-oven men--------
188
M o n th l y L a b o r R e v ie w — J a n u a r y 1 9 3 9
T able 6.— Union Scales of Wages and Hours in the Bakery Trades, June 1, 1938— Con.
City, type of baking, and
occupation
Toledo, Ohio—Continued
Peeler-oven
helpers, molders’
helpers, or wrapping-machine
m en________________ ___ ____
Helpers, other_________________
Washington, D. CV
Day work:
Journeymen________________
Helpers____________________
Night work:
Journeymen_______________
Helpers____________________
Rate
per
hour
Hours
per
week
010
.5 6 0
44
44
1 .0 5 0
.6 0 0
40
40
1 .2 5 0
.7 0 0
40
40
.5 8 3
.5 2 1
.4 1 7
48
48
48
$0.
.8 7 5
.7 0 0
.6 5 0
:s 40
18 40
15 40
.500
u 40
1.146
1.042
48
48
Worcester, Mass.
Hebrew baking:
F orem en...................................
Second hands______________
Rate
per
hour
Hours
per
week
Youngstown, Ohio
Wichita, Kans.
Hand shops:
First bakers.______________
Second bakers______________
Helpers______ ____ _________
Machine shops:
Foremen. ______ ___________
Mixers or ovenmen_________
Bench hands or machine m en.
H elpers................................. .
City, type of baking, and
occupation
Hand shops:
Foremen__________________
Mixers or ovenm en.. _ _____
Bench hands_______________
Helpers _______ _______ ..
First helpers, female__ . . . .
Second helpers, female______
Machine shops:1
Mixers or ovenmen. _ ______
Mixers’ helpers, bench hands,
or machine hands. ____.
Dumpers or feeders____ _ . . .
Bake-shop helpers..
_____
Checkers. ________ . . . . _
Chute men or head slicers and
wrappers_____________
Packers or slicing and wrapping- machine operators___
Hand wrappers_______ _____
Hebrew baking:27
Ovenmen__________________
Mixers. ............... . . ______
Bench hands_______________
Helpers___________________
780
.7 2 0
.6 6 0
.4 5 0
.4 2 5
.3 7 5
48
48
48
48
48
48
.8 0 0
15 40
.7 2 5
.6 7 0
.6 3 0
.6 2 0
15 40
15 40
15 40
15 40
.6 0 0
15 40
.5 6 0
.4 8 0
15 40
is 40
.9 2 5
48
48
48
48
$0.
.850
.738
.450
1 1 week’s vacation with pay, after 1 year of service.
2 2 0 cents per hour additional for work between 1 0 p. m. and 6 a. m.
3 10 cents per hour additional for work between 10 p. m. and 4 a. m.
4■
*' cents per hour additional for work between 10 p. m. and 6 a. m.
I Overtime limited to 2 hours per week.
8 15 cents per hour additional for work between 10 p. m. and 6 a. m.
7 5 days’ pay for 4 days’ vacation.
8 5 percent additional for night work.
8 $ 2 0 per week minimum for regular employees.
10
33-hour week from September to April.
II Hand shops permitted 48 hours per week for same weekly pay.
12
Agreement permits 48 hours; union limits each man to 40 hours.
1 3 1 0 cents per hour additional for night work; 7H hours per night.
14 Foremen guaranteed minimum of $5 per week over highest-paid journeyman.
15 44 hours’ straight time permitted.
18 50 hours’ straight time, plus 1 hour at overtime rate, permitted.
1 7 1 week’s vacation with pay if employed 6 months prior to signing of agreement.
18 Overtime limited to 3 hours per week.
18 50 cents per day increase after Sept. 1, 1938.
20 48 hours’ straight time permitted; regular employees guaranteed 40 hours per week.
21 1 week’s vacation after 2 years of service.
22 Full time allowed, 45 hours.
23 40 hours per week for 12 weeks following Christmas; then 44 hours until July 1; and 48 hours from July
1 until Christmas, all at same weekly pay. 4 hours’ overtime at straight pay permitted.
24 10 percent additional per hour when working less than 5 days per week.
25 20.7 cents additional per hour after midnight or 10.3 cents additional between 6 p. m. and midnight.
28 25 cents per hour additional for work between 8 p. m. and 6 a. m.
271 week’s vacation, with pay for 40 hours.
WORKS PROGRESS ADMINISTRATION WAGE SCALES
EMPLOYMENT under the Works Progress Administration program
has included (1) workers on projects operated by the Works Progress
Administration in cooperation with the States, cities, and counties,
and (2) persons employed on projects of other Federal agencies financed
by allotments from the funds of The Works Program. The wage
schedule adopted was designed to furnish an assured monthly income
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
W ages a n d H o u rs o f L a b o r
189
for the workers employed.1 However, projects executed under con
tract and projects of the Emergency Conservation Work, the Public
Works Administration, the Bureau of Public Roads, and the National
Youth Administration were excepted from the established wage
schedule. The Civilian Conservation Corps, though generally con
sidered a part of The Works Program, has had its own wage schedule.
Security-Wage Schedule
The “monthly security wage” schedule adopted included variations
according to the skill of the worker, the section of the country, and
the degree of urbanization of the county in which the worker might
be employed. Modifications of the schedule were provided for, and
the original schedule has been changed in some particulars, by Execu
tive order and through administrative action. Modifications author
ized by Executive order include changing schedule rates for any class
of work, within 10 percent, in order to prevent inequalities; raising
rates in one county to equal those in a contiguous county; and re
defining any wage-rate region.
In the first schedule different wage rates were provided for four
regions of the country, but since July 1936 the schedule has fixed rates
for but three regions, the States being rearranged therein accordingly.
The application of wage rates paid in urban areas to contiguous
counties has resulted in transferring some counties from one urbaniza
tion group to another. In the summer of 1938 changes were made in
the schedule for the purpose of bringing the wage levels of workers in
the South more nearly in line with the wage levels in other parts of
the country. These changes effected increases of $5 to $7 a month
in the wage rates for unskilled workers in 11 Southern States, and of
$4 to $8 in one other State and parts of another. Adjustments were
also made in the wage rates for skilled and professional workers and
for intermediate workers in this region.
The basic schedule of monthly wages effective July 1938 (including
subsequent adjustments) provides wage scales for four wage classes
dependent on the skill of the workers—unskilled, intermediate, skilled,
and professional and technical. Differences in general wage levels,
standards of living, and costs of living are provided for by separate
rates for three regional groups and five urbanization groups. This
wage schedule applies to all workers on Works Progress Administra
tion projects who are paid from Federal funds, with the exception that
up to 5 percent (originally 10 percent) of the workers in any State
may be exempted in order to permit the employment of workers with
specialized training and ability in certain technical and supervisory
positions. A maximum of 10 percent may be exempted on any single
i Works Progress Administration. Report on Progress of the Works Program, March, June, and Decem
ber 1937; Report on Progress of W. P. A. Program, June 1938. Washington, 1937 and 1938.
115652— 39------ 13
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Federal Reserve Bank of St. Louis
190
M o n th l y L a b o r R e v ie w —- J a n u a r y 1 9 3 9
project. The actual percentage of “nonsecurity” workers in May
1938, however, was only 2.6. The basic schedule of monthly security
wages of Works Progress Administration workers effective July 1938
(including subsequent adjustments) is given in the following table.
Schedule of Monthly Earnings on Works Progress Administration P r o je c ts
Counties in which the 1930 population of the
largest municipality was s—
Wage-rate region1
Over
100,000
(A)
Region 1__________________ ______
Region 2........... .........................................................
Region 3_______ _____ _________ _________
$55.00
45.00
40.00
50.000 to
100.000
(B)
25.000 to
50.000
(C)
5.000 to
25.000
(D)
Under
5,000
(E)
Unskilled work
$52.00
42.00
38.00
$48.00
40.00
36.00
$44.00
35.00
30.00
$40.00
32.00
26.00
Intermediate work
Region 1______________ __________________ _
Region 2........... .................. .................................
Region 3___________________________________
$65.00
58.00
57.20
$60.00
54.00
52.80
$55.00
50. 00
47.30
$50.00
44.00
39.30
$45.00
38.00
33.00
$63.00
52.00
52.00
$55.00
44.00
44.00
Skilled work
Region 1____________ _______ ________
Region 2______ ____ _______ _____________ _______
Region 3______________________________ _ _
$85.00
72.00
72.00
$75.00
66.00
66.00
$70.00
60.00
60.00
Professional and technical work
Region 1___________________ _____ _ . . .
Region 2_______ ________ _______________________
Region 3________________________________________
$94.00
79.00
79.00
$83.00
73.00
73.00
$77.00
66.00
66.00
$69.00
57.00
57.00
$61.00
48.00
48.00
1 Wage-rate regions include the following States:
Region 1—Arizona, California, Colorado, Connecticut, Idaho, Illinois, Indiana, Iowa, parts of Kentucky,
Maine, Massachusetts, Michigan, Minnesota, parts of Missouri, Montana, Nebraska, Nevada, New
Hampshire, N ew Jersey, N ew Mexico, N ew York, North Dakota, Ohio, Oregon, Pennsylvania, Rhode
Island, South Dakota, Utah, Vermont, Washington, Wisconsin, and Wyoming.
Region 2—Delaware, District of Columbia, Kansas, parts of Kentucky, Maryland, parts of Missouri,
Oklahoma, parts of Texas, and West Virginia.
Region 3—Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, North Carolina, South Caro
lina, Tennessee, parts of Texas, and Virginia.
s For convenience these groups of counties are usually referred to as urbanization groups A, B, C, D , and
E, as indicated in the column headings.
Under this schedule of monthly wages for Works Progress Admin
istration workers in the different sections of the country, the range is
from $26 for unskilled work in the rural counties in the Southern
States included in region 3 to $94 for professional and technical work
in the most thickly populated counties in the Northern and Western
States in region 1.
The average assigned wages in the major types of projects are
affected by the relative proportions of unskilled, skilled, and technical
labor required therein, and also as to whether the projects tend to be
situated largely in rural or urban counties, or in different sections of
the country.
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Federal Reserve Bank of St. Louis
W ages a n d H ou rs o f L abor
191
A v e r a g e H o u r ly E a r n in g s
The act under which The Works Program was inaugurated in 1935
provided that the wage rates to be paid on Works Progress Administra
tion projects should not tend to decrease the going wage for similar
work. Provisions in the Emergency Relief Administration Acts of
1936, 1937, and 1938 declared that the hourly wage rate should not
be less than the prevailing local rates for similar work, but continued
the limitation on the monthly wages paid to those established in the
security wage schedule. The Emergency Relief Administration Act
of 1938 added the requirement that the wage rates paid to Works
Progress Administration workers should be not less than the minimum
rates of pay established under the Fair Labor Standards Act of 1938
for workers in private employment. This wage policy, in its applica
tion, determines the hours of employment per month for a Works
Progress Administration worker, as he works only the number of
hours which, at the prevailing local rate, will give him the amount
determined by the monthly security wage schedule.
While maximum hours of work (except when making up lost time
or in exceptional cases) were fixed by administrative order at 8 per
day, 40 per week, and 140 per month, the assigned hours of Works
Progress Administration employees necessarily vary according to the
skill of the worker and the type of the project to which he is assigned.
Voluntary absences, failure to make up time lost involuntarily, and
short time, either of newly assigned employees or those leaving before
the end of the month, reduce the average hours worked by a project
below the assigned hours. Because of this difference between actual
and assigned hours, the average earnings of Works Progress Ad
ministration workers are slightly less than the assigned wage rates.
The assigned working time of skilled workers are on the average about
95 hours per month, and of all the other security-wage workers, around
110 hours.
In the first half of 1938 hourly earnings averaged about 50 cents, as
compared with an average of 51 cents from July 1936 (when the pre
vailing wage policy was initiated) to the end of 1937. In October
1937 the average earnings reached 53 cents an hour. The lower
earnings in the first half of 1938 reflect the fact that large numbers of
newly added Works Progress Administration workers were assigned
to unskilled work, and that certain occupations in some States were
reclassified at lower wage rates. Not only the relative number of
workers in the different occupations, but the local wage levels affect
the average earnings in the different States. For the year ending
June 30, 1938, the average hourly earnings were over 60 cents in
California, Massachusetts, Montana, Nevada, New York City, and
Wisconsin, while in 7 Southern States the average was 30 cents or
less.
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192
M o n th l y L a b o r R e v ie w — J a n u a r y 1 9 3 9
The average earnings per hour of workers on the various types of
projects operated by the Works Progress Administration, in the second
quarter of 1938, were as follows:
Average earnings
per hour
Type of project
All projects_______________________________________ $0. 501
Conservation__________________________ ______ _____
Highway, road, and street__________________________
Professional, technical, and clerical_________________
Public buildings 1__________________________________
Publicly owned or operated utilities_________________
Recreational facilities 2_____________________________
Sanitation and health______________________________
Sewing, canning, gardening, etc_____________________
Transportation___________ ______ _________________
Not elsewhere classified____________________________
. 492
. 449
. 634
. 680
. 529
. 593
.415
. 373
. 603
.4 7 9
' Separate data for housing projects are not available.
>Exclusive of buildings.
FARM WAGE AND LABOR SITUATION, OCTOBER 1,
1938
FARM wage rates on October 1, 1938, were lower than on the same
date a year earlier, averaging $1.69 per day without board, for the
country as a whole, as compared with $1.83 on October 1, 1937,
according to the quarterly report on farm wage rates issued by the
United States Bureau of Agricultural Economics. The rates in the
individual States ranged from 80 cents in South Carolina to $2.80
in California, Connecticut, and Montana; on October 1, 1937, the
range was from 85 cents in South Carolina to $3.20 in California.
The demand for farm labor was also considerably lower on October 1,
1938, than on October 1, 1937, being 81.1 percent of normal as against
91.7 percent on the earlier date. The supply of labor was 90.5 percent
of normal on October 1, 1938, and 80.6 percent on October 1, 1937.
T able
1.—Average Farm Wage Rates and Employment at Specified Periods
Item
Farm wage index......................... .............................
Farm wage rates:
Per month, with board........................................
Per month, without board...................................
Per day, with board.............................................
Per day, without board........................................
Supply of and demand for farm labor (percent of
normal):
Demand...... .........................................................
Supply as percentage of demand............. ............
Number of persons employed per farm:'
Hired labor........................................... .............
Combined.............................................................
On farms of crop reporters.
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Federal Reserve Bank of St. Louis
Annual
average,
1910-14
July 1,
1937
Oct. 1,
1937
July 1,
1938
Oct. 1,
1938
100
123
126
120
118
$20.41
$29.09
$1.10
$1.43
$25.28
$36.14
$1.34
$1.76
$25. 51
$36.71
$1.39
$1.83
$24.57
$35.52
$1.29
$1.70
$24. 01
$34.75
$1.28
$1.69
82.4
90.7
90.8
80.6
91.7
87.9
91.1
83.7
108.8
90.5
81.1
111.6
2.19
1.07
3.26
2.04
1.10
3.14
2.20
1.09
3.29
2.00
1.10
3.10
193
fF ages a n d H o u r s o f L a b o r
Table 1 shows average farm wage rates, supply of and demand for
farm labor, and number of persons employed per farm, on October 1,
1938, as compared with July 1, 1938, July 1 and October 1, 1937, and
the annual average 1910-14 for wage rates.
Average farm wage rates per month and per day, with board and
without board, on October 1, 1937 and 1938, are shown in table 2 by
geographic division.
T a b l e 2 . —Average Farm Wage Rates on Oct. 1, 1937 and 1938, by Geographic Division
Per month,
with board
Per month,
without board
Per day, with
board
Per day, with
out board
Geographic division
1937
United States
_________ _________ $25.51
New England____ _____ ______ ____
M iddle Atlantic__________________
East North Central_______________
West North C entral-..____________
South Atlantic____________________
East South Central_______________
West South Central_______________
Mountain__________ _ __________
Pacific________ ______ ____________
33.47
31.12
31.87
28. 97
17. 52
16.96
20.07
38.09
46.70
1938
1937
1938
1937
1938
1937
$24.01
$36.71
$34.75
$1.39
$1.28
$1.83
$1.69
31. 60
29. 53
29.65
28.26
16.24
15.93
19.00
36.09
42.19
55.99
48.09
44.16
39. 58
25.54
24.18
29.22
53.54
69.08
54.10
45.80
41.44
38. 57
23. 92
22.97
27.65
51.23
62.63
1. 95
1. 95
1.83
1.64
.94
1.82
1.77
1.65
1.56
.85
.78
.96
1.77
2.03
2.71
2.55
2. 36
2.17
1.24
1.13
1.35
2.43
3.09
2.56
2.39
2.16
2. 07
1. 14
1.05
1.24
2.29
2.72
.8 6
1.07
1. 87
2.19
1938
WAGES IN COTTON PICKING, 1938
WAGE rates for the picking of seed cotton averaged 57 cents per
100 pounds in 1938, a decline of 12 cents from the 1937 figure. The
rates ranged from 50 cents in Alabama, Georgia, and South Carolina,
to 80 cents in Arizona and Kentucky. Average rates for each of the
cotton-growing States, and for all these States combined, in 1929 and
in each year from 1935 to 1938, are given in the following table taken
from Crops and Markets for November 1938, issued by the United
States Department of Agriculture.
Average Wage Rates for Picking 100 Pounds of Seed Cotton, 1929 and 1935-38
1937
1938
United States___ $1.06 $0.58 $0.69 $0.69
$0.57
State
1929
Virginia........ ......... 1.15
North C arolina... 1 .0 1
South C arolina... .81
.90
1.07
Illinois.................. - 1.15
M issouri............... 1 . 1 2
K ansas................... 1.30
K entucky.............. 1.18
1935
.65
.65
.50
.50
.55
.75
.75
.70
.75
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
1936
.70
.65
.55
.55
.60
.90
.95
.75
.95
.75
.70
.60
.60
.65
.70
.80
.65
.80
.65
.60
.50
.50
.60
.70
.75
.65
.80
State
Tennessee______
Alabama_______
M ississippi______
Louisiana_______
Texas____ ______
Oklahoma.. . ._
Arkansas.. ._ . . .
New Mexico____
Arizona_________
California_______
1929
1935
1936
1937
$1. 34 $0.60 $0.80 $0.70
.92
.50
.60
.60
1.08
.55
.75
.80
.55
.65
.70
1 .0 1
.65
1 .1 1
.60
.65
1 .2 2
.75
.70
.75
1.06
.55
.70
.75
.70
1.25
.65
.70
.85
1.50
.90 1 . 1 0
.90 1 . 0 0
.95
1.45
1938
$0.60
.50
.55
.55
.55
.70
.60
.60
.80
.75
Labor Turn-Over
LABOR TURN-OYER IN MANUFACTURING, OCTOBER
1938
INCREASED activity in a number of manufacturing industries, par
ticularly the automotive industry, was reflected in the higher accession
rate shown by the Bureau of Labor Statistics’ monthly survey of
labor turn-over in manufacturing establishments. Workers were
hired or rehired at the rate of 5.19 per 100 on the pay roll, as compared
with 4.51 for September. The October rate was nearly twice as high
as in October 1937. Lower quit, lay-off, and total separation rates
were indicated; the quit rate declined from 0.82 for September to 0.78
for October, the lay-off rate from 2.62 to 2.40, and the total separation
rate from 3.56 to 3.30. The discharge rate showed no change.
All classes of separations were much lower than during October
1937. The quit rate and discharge rate were lower by a third. The
lay-off rate was approximately one-half as high, and the total separa
tion rate slightly more than two-thirds as high.
Of the 24 industries for which separate rates are published, 16 had
lower total separation rates than in September 1938 and 23 had lower
total separation rates than in October 1937. The October 1938
accession rate was above that for the preceding month in 12 industries
Compared with October 1937 there were 17 industries showing higher
accession rates.
All Manufacturing
The Bureau of Labor Statistics’ survey of labor turn-over covers
more than 5,000 representative manufacturing establishments, which
in October 1938 employed more than 2,200,000 workers. The rates
represent the number of changes in personnel per 100 employees on
the pay rolls during the month.
The rates shown in table 1 are compiled from reports received from
representative plants in 144 industries. In the 24 industries for which
separate rates are shown (see table 2) reports were received from repre
sentative plants employing approximately 25 percent of the workers
in each industry. These data include for the first time turn-over
rates for plants manufacturing steam and hot-water heating apparatus.
Table 1 shows the total separation rate, classified into quit, dis
charge, and lay-off rates, and the accession rate for each month of
194
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L a b o r T u r n -O v e r
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Federal Reserve Bank of St. Louis
196
M o n th l y L a b o r R e v ie w — J a n u a r y 1 9 3 9
1937 and for the first 10 months in 1938 for manufacturing as a whole.
The averages of the monthly rates for 1937 are also presented.
T a b l e 1. —Monthly Labor Turn-Over Rates (p er 100 Employees) in Representative
Factories in 144 Industries
Sep Octo No De Aver
Class of rate and Jan Feb March April May June July Au tem
cem
year
uary ruary
gust ber ber vem
ber ber age
Quit:
1938________
1937________
Discharge:
1938.................
1937.............
Lay-off:1
1938...............
1937___ ____
Total separation:
1938________
1937___ ____
Accession:
1938___ ____
1937.................
0.52 0. 49
1.27 1.19
.11
.21
0.61 0.59 0.62 0.61 0.59 0.65
1. 43 1.38 1.37 1.89 1.25 1.23
.11
.22
.11
.19
.09
.21
.10
.19
. 12
.19
.12
.19
5.45 3. 79
1.90 1.44
3. 74 3.85 3.82 3.69
1.53 1.48 1.79 1.94
3.13
2.06
2.33
2.57
2.62
2.84
2.40
4.45
6.08
3.38
4.39
2.85
4.46
3.20
4. 54 4.57
3.09 3.37
4.41
4.02
3.81
3.52
3.08
3.99
3.56
4.62
3.30
5.69
3.78
4.60
3.13
4. 71
3.13
4.74
2. 58 2.84
4.04 3.56
3.44
3.69
4. 81 5.29
3.36 3.36
4. 51 5.19
3.78 2.84
.11
.24
.10
.23
0.82 0.78
1.59 1.05 0.72
.13
.21
0.60
1.25
.16
.14
.20
5.99
7.77
2.98
6.87
8.51
4.43
1.79
2.12
3. 55
1 Including temporary, indeterminate, and permanent lay-offs.
Twenty-four Industries
Detailed turn-over rates for 24 selected manufacturing industries
are listed in the accompanying table which gives the number of quits,
discharges, and lay-offs, total separations, and total accessions per 100
employees in reporting firms in October and September 1938 and
October 1937.
T a b l e 2 . — Monthly Turn-Over Rates (per 100 Employees) in Specified Industries
Class of rates
Oct.
1938
Sept.
1938
Oct.
1937
Automobiles and bodies
Quit____ _________________
Discharge______ __________
Lay-off......................................
Total separation.....................
Accession____________ ____
0.34
.04
1.41
1.79
21.62
0.47
.09
2.98
3.54
17.85
0.96
.15
2.33
3.44
8.26
Oct.
1938
0.73
,13
2.31
3.17
4.88
0.81
.07
2.90
3.78
7.29
0.96
.2 0
9.32
10.48
2.51
Cotton manufacturing
Quit____ _________________
Discharge..................................
L a y -o ff-..................................
Total separation. _______
Accession........................... .......
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Federal Reserve Bank of St. Louis
1.15
.17
2.07
3.39
5.05
1.33
1.16
.2 2
.2 0
2.25
3.80
4.49
5.01
6 .37
3.10
Oct.
1937
Automobile parts
0.64
.14
1.94
2.72
15.14
Brick, tile, and terra
cotta
Quit________ ____________
Discharge.................................
Lay-off.................... ..................
Total separation..................
Accession.................................
Sept.
1938
0.54
.1 2
2.30
2.96
18.32
1.13
.34
4.00
5.47
7.03
Cement
0.40
.03
3.29
3.72
4.05
0.51
.13
3.70
4.34
5.47
0.72
.05
.99
1.76
5.09
Sept.
1938
Oct.
1937
Boots and shoes
0.85
1 .0 0
.1 0
.16
1.91
3.07
1.82
4.17
5.12
1.57
0.84
.13
5.52
6 .49
1.59
Cigars and cigarettes
1.18
.35
2.75
4.28
6.79
Electrical machinery
0.48
.07
.95
1.50
5.38
Oct.
1938
0.84
.2 2
4.06
5.12
1.36
1.16
.19
1.37
2.72
2.69
1.44
.1 0
1.41
2.95
4.05
1.38
.14
.40
1.92
3.31
Foundries and machine
shops
0.39
.06
2.45
2.90
3.33
0.41
.06
2.76
3.23
3.05
0.87
.2 2
4.40
5.49
1.56
197
L a b o r T u r n -O v e r
T a b l e 2 . — Monthly Turn-Over Rates (per 100 Employees) in Specified Industries— Con.
Class of rates
Sept.
1938
Oct.
1938
Oct.
1937
Sept.
1938
Oct.
1938
4.09
.13
2.78
7.00
3.29
0.87
.2 0
1.52
2.59
5.73
1.76
.30
5.49
7.55
3. 6 8
0.74
. 11
1 .1 1
1.96
3.37
0.57
.1 1
.0 2
1.07
1.61
4.64
.43
1 .0 2
5. 6 8
0.90
.15
2.98
4.03
3.32
1 .0 2
1.09
.08
1.04
2.14
3.50
2. 29
3.50
2.29
.1 2
0.61
.07
3. 56
4.24
3.40
0.74
.27
5.64
6.65
4.29
Sept.
1938
Oct.
1937
0.41
.03
.85
1.29
2.51
1.62
.09
3. 6 6
5.37
.73
0.42
.03
1 .1 1
1.56
1.82
Petroleum refining
M en’s clothing
Knit goods
Quit---------- ---------------------Discharge________________
Lay-off.- ________________
Total separation.....................
Accession.---------- -------------
0.43
Oct.
1938
Iron and steel
Hardware
Furniture
Quit...........................................
Discharge.................................
L a y -o ff.-.................................
Total separation.....................
Accession.................................
Oct.
1937
0.87
.03
6.32
7.22
3. 70
0.30
.06
1. 39
1,75
1.65
0.75
.04
1.67
2.46
1.30
0.53
.07
3.62
4.22
2.45
Printing and publishing
Radios and phonographs
Newspaper
Book and job
Quit................................ .........Discharge________________
Lay-off___________________
Total separation............ .........
Accession---------- ---------------
0.53
.1 1
2.74
3.38
4.70
0.48
. 17
3.08
3.73
4.24
0. 72
.29
3. 75
4. 76
■5.26
0.78
.15
2.37
3.30
1.94
1.09
.1 1
1.03
2.23
3.91
0.81
.43
9.43
10.67
.91
Slaughtering and meat
packing
Discharge_________ ____ -Total separation.. ................
Accession................................-
0.76
.14
4.92
5.82
8 .77
0.77
.1 2
5.46
6 . 35
6.48
0.23
.8 8
1 .2 0
1.38
1.71
2.93
2.70
.1 0
0.31
.09
1.37
1. 77
2.78
2.28
.17
1.46
3.91
17.73
0 .6 8
.18
5. 56
6.42
8 .37
0.41
.05
1.33
1.79
3.47
0.48
.04
.74
1 . 26
3.23
0.53
.07
5.45
6.05
.67
Steam and hot-water
heating apparatus
0.51
.13
2.67
3.31
1.36
0.49
.13
.67
1.29
2.04
1.03
.1 2
1.27
2.42
7.67
1.29
.24
11.53
13.06
1.80
Sawmills
Rubber tires
Rayon
Quit_____________________
Discharge_______________
Lay-off..................... ................
Total separation..... ................
A ccession.................. ..............
0.27
.05
0.95
.2 1
3.47
4.63
1.33
1. 59
.19
4.70
6.48
4. 6 8
1.70
.2 0
4.81
6.71
5.97
2.25
.26
1 0 .2 1
12. 72
3.02
Woolen and worsted
goods
0.65
.09
4.43
5.17
1 0 .1 2
0.75
.1 1
1 1 .1 0
11.96
3.00
0.74
.09
6.83
6 .6 6
3.68
LABOR TURN-OYER IN THE AUTOMOTIVE PARTS
AND EQUIPMENT INDUSTRY, 1936-371
SEASONAL variation in the volume of production of parts and equip
ment for automobiles was the primary cause of the high turn-over
rates for the industry, as compared with all manufacturing. Labor
disputes within the industry were, however, in part, the cause of the
high quit rates registered. The total separation rate in the 175
identical plants that reported turn-over to the Bureau in 1937 was
i An article on labor turn-over covering the automobiles and bodies and automobile parts industries,
1931-1935, appeared in the Monthly Labor Review, May 1938 (pp. 1319-1321).
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Federal Reserve Bank of St. Louis
M o n th l y L a b o r R e v ie w — J a n u a r y 1 9 3 9
198
twice as great as the rate for all manufacturing in that year, and the
rate in 1936 was in excess by a third. High accession rates accom
panied the high separation rates, indicating greater fluctuations in
employment than in manufacturing generally. All three classes of
separations were more numerous during both years in plants manu
facturing automotive parts and equipment than in all manufacturing.
A comparison of turn-over rates in plants manufacturing automo
tive parts and equipment shows an increase in the quit rate from 18.48
in 1936 to 22.55 per 100 employees in 1937. The discharge rate de
clined from 5.34 to 4.10 in the same period. The lay-offs increased
from 37.83 for every 100 employees on the pay roll in 1936 to 80.44
in 1937. The total separation rate increased from 61.65 to 107.09.
In 1936 workers were hired or rehired at the rate of 83.74 per 100;
in 1937 the hiring rate was 73.66. The 175 plants included in the
survey employed an average of 73,150 workers in 1936 and an average
of 85,593 in 1937.
In the 175 identical plants manufacturing automotive parts and
equipment, 21 percent of the total separations were reported as quits
in 1937 and 30 percent in 1936. Discharges accounted for 4 percent
and 9 percent, respectively. Lay-offs in 1937 were 75 percent of the
total separations and 61 percent in 1936.
Table 1 shows the labor turn-over rates in all manufacturing and
in the manufacturing of automotive parts and equipment, 1936 and
1937.
T able 1.—Labor Turn-Over Rates in A ll Manufacturing and in Manufacture of Auto
motive Parts and Equipment, 1936 and 1937
Separations
Accessions
Item
Quits
1937
All manufacturing . ...........
Automotive parts and equip___
m ent_________ _ _
1936
Discharges
1937
1936
Lay-offs
1937
2
Total
1936
1937
1936
1937
1936
15.02
12.96
2. 37
2.64
35.67
24.73
53.06
40.33
42.47
52.08
22. 55
18.48
4.10
5.34
80.44
37.83 107.09
61.65
73. 6 6
83.74
1 The rates for the manufacture of automotive parts and equipment are based on reports from 175 identical
plants manufacturing motor vehicle parts and accessories. Plants manufacturing automobiles and automo
bile bodies are not included.
The annual turn-over rates are found by taking the total quits, discharges, lay-offs, total separations, and
accessions during the 1 2 months as the numerator. The denominator is the average of 1 2 monthly
averages, each found by taking the reported number of employees at the beginning and at the end of the
month and dividing by 2. The resulting fraction is multiplied by 100 to secure the rate on a basis of “per
1 0 0 employees.”
For further explanation see B .L.S. Serial No. R. 487 (Revised): Standard Procedure for Computing
Labor Turn-Over (M onthly Labor Review, December 1936, p. 1486).
2 Including temporary, indeterminate, and permanent lay-offs.
Labor Turn-Over, by Rate Groups
Table 2 shows, for each type of turn-over, the number of establish
ments and the number of their employees, according to the rate at
which thej were hired or separated in 1936 and 1937. The figures
relate to 175 identical establishments in the 2 years.
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Federal Reserve Bank of St. Louis
199
L a b o r T u r n -O v e r
No significant changes were shown in the proportions of quits or
discharges, as classified by size of rate, between 1936 and 1937. Lay
offs, however, showed a much larger number of plants with higher
rates in 1937 than in 1936. In 1937, 32 plants showed lay-offs of
120 or more per 100 employees, as against only 6 in 1936. The num
ber of plants with rates less than 40 decreased from 116 to 67. Total
separations, of which lay-offs form the largest class, likewise showed
more plants with high rates in 1937. The number of concerns report
ing total separations of 120 or more per 100 employees increased from
17 in 1936 to 48 in 1937. There were, accordingly, fewer with low
rates. In 1936, 72 plants reported rates under 40; in 1937 only 37
were in this category.
Accessions were somewhat lower in 1937, but the distribution of
plants according to their hiring rate did not vary greatly between the
2 years.
T a b l e 2 . —Distribution of 175 Establishments Manufacturing Automotive Parts and
Equipment, by Turn-Over Rates, 1936 and 1937 1
Number of es
tablishments
Number of em
ployees
Percent of total
employees
Class and rate of turn-over
1937
Quits:
Discharges:
Lay-offs:
6.71
2.30
9.09
1 0 . 20
2 0 . 66
17.51
12.76
5.46
5. 75
9.56
6.56
9.42
8.64
4.10
13.12
25.78
12.55
6.98
1.14
11.71
73,150
1 0 0 .0 0
1 0 0 .0 0
175
175
85,593
52
52
11
23
26
19
12
6
16,568
2,715
4,231
8,826
5,946
2,847
10,243
11.03
14.66
9.27
17.44
15.34
5.18
12. 63
1.98
5.43
7.04
11.63
4.46
13.67
2 2 . 66
3.71
5.78
12.07
8.13
3.89
14.00
1 0 0 .0 0
1 0 0 .0 0
8,507
3,266
10
21
16
5
27
9,440
12,547
7,932
14,926
13,133
4,434
10,807
1,695
4,649
6,030
175
175
85,593
73,150
13
30
15
28
25
18
19
7,773
4,873
13,329
14,127
9,081
6,811
10,738
3,160
2,739
519
4.77
2.79
5.02
6.40
5.82
17. 92
15.38
25.57
5.81
10.52
10. 63
73,150
1 0 0 .0 0
1 0 0 .0 0
11
6
17
18
22
11
10
21
8
10
12
14
7
T o ta l.-................... - ------ ----------------------
4,802
6,892
6,322
2,998
9,594
18,856
9,183
5,106
834
8 , 563
25
25
19
9
1936
1936
22
13
15
14
34
24
9
15
9
1937
1937
5,741
1,969
7,778
8,729
17,689
14,985
10,922
4,675
4,922
8,183
20
T otal...............................................................
1936
150 and over_________ _________________
11
21
3
3
4,082
2, 390
4, 294
5,478
4,984
15,334
13,160
21,892
4,973
9,006
Total..................... ..........................................
175
175
85,593
12
18
10
14
32
26
18
22
12
1 0 ,0 0 1
6 .6 6
18.22
19.32
12.41
9.31
14.68
4.32
3.74
.71
1
The various turn-over rates represent the number of quits, discharges, lay-offs, total separations, and
accessions per 1 0 0 employees.
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Federal Reserve Bank of St. Louis
200
M o n th l y L a b o r R e v ie w — J a n u a r y 1 9 3 9
T a b l e 2 . — Distribution of 175 Establishments Manufacturing Automotive Parts and
Equipment, by Turn-Over Rates, 1936 and 1937—Continued
Number of es
tablishments
Number of em
ployees
Percent of total
employees
1937
1936
1937
1,377
2,403
6,317
19,693
15, 605
12,927
9,435
1,844
894
2,655
3.00
8.03
25.58
16.20
21.81
6.51
11.58
Class and rate of turn-over
1937
Total separations:
Under 10___ _____________ ___________
1 0 and under 2 0 __________ . . ________
20 and under 30______ _____ __________
30 and under 40______ ____ _____ ______
40 and under 60________ ___ ______
60 and under 90___________ ___________
90 and under 120_______________________
120 and under 150___________________
150 and under 180_____ ______ _______
180 and over____________________ .
T o ta l..____ _____________________
Accessions:
Under 5______ ____ _____ _______
5 and under 10________ _______ .
1 0 and under 2 0 _______________ ______
20 and under 30__________________
30 and under 40_______ _____ .
40 and under 50______________
50 and under 70._____ _____ ______
70 and under 110_________ ____
110 and under 150____ ____
150 and over_____
... .
Total_________ _______
.
4
1936
1936
47
13
13
16
30
30
35
21
21
18
8
22
7
7
3
717
3,072
2,450
2,564
6,873
21,892
13,867
18, 6 6 8
5,574
9,916
175
175
85,593
73,150
1 0 0 .0 0
1 0 0 .0 0
3
15
71
362
962
2,159
6,030
6 , 642
20,934
22, 413
7,497
6,080
0.06
1.27
2.30
6.18
15.42
11.38
18.96
27.57
4.68
12.18
0 .1 0
15
16
15
38
45
17
16
51
1,085
1,967
5,286
13, 200
9,742
16,226
23,604
4,010
10,422
175
175
85, 593
73,150
11
10
12
22
1
5
8
21
19
17
36
41
12
2
8
0.84
3.59
2 .8 6
1 0 0 .0 0
1 .8 8
3.29
8.64
26.92
21. 33
17.67
12.90
2.52
1 .2 2
3.63
.49
1.32
2.95
8.24
9.08
28.62
30.64
10.25
8.31
1 0 0 .0 0
Turn-Over Rates, by Size of Establishment
Table 3 shows comparative labor turn-over rates for establishments
with less than 150 employees as compared with those employing 150
or more. There is no indication that in this industry the amount
of turn-over varies with the size of establishments. In 1936 the
smaller plants had higher total separation rates and lower accession
rates than the larger concerns. In 1937 the reverse was true.
T a b l e 3 . — Comparative Labor Turn-Over Rates in Plants Manufacturing Automotive
Parts and Equipment, b y Size of Establishment, 1936 and 1937
Rate per 100 employees in establishments em
ploying in—
Class of turn-over
1937
1936
Fewer than 150 ormore Fewer than
or more
150 em
150 em 150
employees
ployees employees
ployees
Separations:
Quits.........................
Discharges_____ ______
Lay-offs........... ............
Total separations_________
Accessions________________
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Federal Reserve Bank of St. Louis
.
17.44
5.94
66.06
89.44
74.75
22.98
3.93
81.67
108.58
Employment Offices
OPERATIONS OF UNITED STATES EMPLOYMENT
SERVICE, NOVEMBER 1938
SUSTAINED improvement in job opportunities was reflected in the
activities of the United States Employment Service during November
1938. Placements in private jobs numbered 178,075, the largest
November total reported in the history of the Employment Service.
A simultaneous decrease in the number of job seekers registered with
offices reduced the active file to 7,529,384, the lowest level since last
June and the third consecutive monthly decline.
Employment offices made a total of 250,799 complete placements
of all types. Although this total represents a seasonal decline from
the preceding month, the drop of 8 percent was the smallest decrease
which has been reported for November in 3 years. Placements with
private employers made up the major portion of all jobs filled. The
volume of 178,075 private jobs likewise showed the smallest seasonal
decline in 4 years. This total is one-eighth higher than the volume
for either November 1937 or November 1936. This is the first time
since October 1937 that private placements have been higher than
for the corresponding month of the preceding year. Placements of
men were reported for 98,279 of the private jobs and placements of
women in 79,796.
Employment offices also made 72,724 placements in public employ
ment, a seasonal drop of 7.2 percent from the preceding month but a
gain of 9.2 percent from November 1937.
Continuation of the decline in the volume of persons currently
registered for work with the Employment Service occurred in No
vember. Slightly over 1,000,000 applications were received, 502,640
representing persons registering for the first time with the public
employment service and 584,139 being renewals of previously regis
tered applicants. Although the number of new applications was 4.9
percent lower than in October, the total was still 68.1 percent above
the level of November 1937. Three-quarters of the applications
received during the month were from men. The decline in the num
ber of job applications received was slightly larger for men than for
women as was true also for the decline in the total active file of job
seekers. At the month end 5,913,847 men and 1,615,537 women
were reported as actively seeking employment,
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Federal Reserve Bank of St. Louis
201
202
M o n th l y L a b o r R e v ie w — J a n u a r y 1 9 3 9
During the month the 1,619 offices and 1,836 itinerant points of the
Employment Service received a total of 8,701,559 personal calls.
Personnel of the offices made 142,688 field visits to employers in an
effort to find additional job opportunities. In addition to the com
plete placements in which the Employment Service performed all the
essential transactions, 68,133 supplemental placements were made in
which the offices assisted in filling a job but did not complete all of the
five placement steps.
T a b l e 1. —Summary of Operations of United States Employment Service, November 1938
Percent of change from—
A ctivity
Total applications_________________ ______ _________
New applications-_____________________ ________
Renewals............................................................................
Total placements__________________________________
Private______ _______________________ ______ ___
Public___________ _________________ ____ _______
Active file (end of month). . ...................................................
1
Number
1,086, 779
502, 640
584,139
250,799
178,075
72,724
7,529, 384
October
1938 i
- 1 .9
- 4 .9
+ .9
- 8 .1
- 8 .5
- 7 .2
- 2 .8
November
1937
November
1936
+42.3
+ 68. 1
+25.8
+11.9
+13.0
+ 9 .2
+70.3
+53.2
+48.1
+57.9
-2 4 .2
+ 1 2 .1
-5 7 .8
+ 1 0 .0
Adjusted for number of working days in month.
Activities of the Employment Service for veterans during November
followed the same general trends. Veterans were placed in 11,599
jobs during the month, of which 6,296 were in private employment and
5,303 in public jobs. A total of 42,189 applications were received
from veterans during November, of which only 13,894 represented new
applicants. At the end of the month 380,469 veterans were registered
as seeking employment.
T a b l e 2. — Summary of Veterans' Activities, November 1938
Percent of change from—
A ctivity
Total applications_________________ ________________
N ew applications............................. ............. ..............
Renewals............................................................................
Total placements................................ ....................................
Private......... ................ ............... ................ ....................
Public.................................... ...........................................
Active file (end of m o n th )................... ...................... .
* Adjusted for number of working days in month.
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Federal Reserve Bank of St. Louis
Number
42,189
13,894
28, 295
11,599
6,296
5,303
380,469
October
1938 i
November
1937
- 5 .5
- 4 .7
- 5 .9
+ 0.5
+24.5
- 8 .1
- 7 .0
-1 2 .3
+. 2
+55. 9
- 1 2 .1
-1 7 .1
- 5 .3
- 5 .3
November
1936
+
1 0 .8
+. 6
+16.6
-4 5 .9
-1 8 .2
-6 1 .4
+ 4.1
203
E m p lo y m e n t O ffices
T a b l e 3 . —Operations of United States Employment Service, November 1938
TOTAL
Applications
Placements
Private
D ivision and
State
Field
Per
Pub visits
cent ol
Total N um change Regular lic
from (over 1
ber
Octo month)
ber 1
United States__ 250, 799 178,075
M aine..........
N .H _____
V erm ont-..
M ass............
R. I . . ..........
Conn...........
12,962
1,739
1,995
1,161
3| 079
1,312
3, 676
9,420
829
1,685
612
2,374
749
3,171
M id. A tlan tic..
New Y o r k N ew Jersey.
Pa___ ____
28,727 21,803
15,139 1 2 , 268
4 , 256 4,019
9,332 5,516
E. N . C entral..
Ohio............
Indiana----Illinois____
M ichigan._.
W isconsin..
41,062 32,875
C, 0 2 0
8 , 521
5,951 5,618
12,765 1 1 , 2 2 1
8 ,2 2 2
6,153
5,603 3,863
W. N . Central._ 26,628 15,965
M innesota.. . 5', 429 3, 8 6 6
7,953 4,397
Iowa______
3,450 2,288
Missouri__
2,444 2,080
N . D ak___
1, 552 1,028
S. D ak____
2,947 1 , 0 2 0
N ebraska...
Kansas------ . 2,853 1,286
- 8
-1 5
+3
+17
-5
-2 5
-4 0
-1 8
6,057 3,542
910
570
1,130
310
338
549
1,680
705
563
490
505
1,849
1 0 , 600
- 8
+ 2
-1 1
5,587
1,619
3,394
-4
-5
17,837
2,894
3,621
4,790
4,484
2,048
8,187 25,203
7,116
2 , 501
333 4,013
1,544 7,063
2.069 3,994
1,740 3,017
-7
-1 1
-8
-5
+14
+ 8
-3 0
- 6
67,232 36,245
9,271 5,163
14,720 7,625
19,017 9,056
24,224 14,401
491,091
96, 515
146,574
160,856
87,146
451,861 7,545
659
24,191
169, 709 5,563
980
136, 539
843
121,422
7,960 28,182
1,161 1,725
1,547 2 ,26E
792 1,621
4,460 22,573
115, 532 54,024
9,460 4,919
18,810 9,328
18,899 8,425
68,363 31,352
458, 292
70,493
119, 250
42,101
226,448
844, 703 38, 627
273
26,76!
124, 645 1,552
385
72,097
621,192 36,417
5,832 5,299
355 1 ,2 1 2
741
431
638
166
81f
678
468
2,154
718
1,354
48'
365
219
329
9,069
1,455
1,626
43(
878
2, 785
74!
638
508
50,196 16, 583
5,109 1,634
8,136 3,038
4,248 1,018
3,984
1 2 , 77:
1,73!
6 , 11!
5 ,11£ 2, 58C
6,96! 2 , 1 1 !
46.
1,731
202,309
32, 566
21,993
8 , 64£
49, 965
35, 566
26,46!
23, 59'
3,508
261,08! 7,117
223
28, 65'
62,19' 1,138
13
13,77(
47
45, 82'
30, 6 6 1,420
39, 55 3,774
405
32,29
97
8 ,1 2
6,832
531
84'
5,454
24
5(
13,54.
-1 3
+9
-5 0
W . S. C entral.. 43, 593 35, 633
2,436 1,275
Arkansas.. .
4,355 2,808
Louisiana..
3,017 2,225
Oklahoma. _
Texas.......... . 33; 785 29, 325
+5
-5 2
-3 2
-3 4
+23
10,240
590
2,059
608
6,983
22,671 17.372
l' 91!
707
2, 60C 1,859
382
1,02C
2 ,49C 1,677
9, 551 9,082
l ’ 90S
2 , 62(
1,655 1 ,16£
'591
81(
-2 8
-5 5
-3 2
-3 5
-5 5
—2 £
25,30, 18,944
1,41
1,72
1, 37'
2,60
20 97‘ 16'l5(
26
' 82
38
11.
- 1(
Pacific.
Oregon.
Alaska.
Hawaii
+8
—48
-f
-4 i
- 2
82,893 1,660,725 1,551,963 2,502
403
16,115 433,115 165,183
18,325 263,777 359,797 1,163
12,396 306, 541 183, 739
473
91
24,908 520,196 661,993
372
11,149 137,096 181,251
6,676
336
2,590
2,859
891
0
+(
184,880
36,847
37,311
30,018
46,982
33, 722
926,761 2,471
6,263
449
1,483
3,600
731
+18
245, 815 114, 982 1,974, 561 2,418,897 1,763
155,058 71,245 543,879 1,649,219 J 141
64, 831
10
26,173 9,065 230,269
64,584 34,672 1,200,413 704,847 1,612
913,632
14,898
75,880
49, 581
52,860
170,905
168,421
130,406
144,480
106,201
-1 0
- 2
+lf
1 1 2 ,0 0 2
15,087 14,322
187
338
814 1,610
116
116
3,070 1,359
925 2,415
3,638 2,590
2,261 1,231
2,737 4, 615
199
1.188
8 , 248
1,301
1,727
1,975
3,245
6 , 361
314
1, 22z
, ;
4 82
18
27
2
, or
1,73.
9, 79;
104
1301
144,364
2,849
19,688
10,186
21,671
14, 751
38,642
13,856
17,624
5,097
1 0 ,6 6 8
21
135,819
85,039
118, 599
142,501
266,054
98,623
49,785
19, 678
184
25
103
895
378
85
227
553
123,47! 55,73< 523,084 1,016,16 5,262
941
63,80
13,00! 5, 67' 137,34;
756
80,41! 151, 59
14,43' 7, 6 6
800,765 3, 565
305,32
96,04‘ 42,39
3,868 (3)
1,46
47 1
67'
2, 6561 » 90
5,19
46
74
r Adiusted for number of working days in month.
2 Predesignated placements not reported separately, but included with complete public placements.
3 Incomplete.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
836
142
93
48
346
48
159
74,049
732
7,163
4, 565
10, 759
5,380
22,285
8,742
10,615
3,808
8,501
872
2,255
4,442
932
N . M exico.
Arizona___
U ta h .........
N evada__
727.536
86,847
43,067
14,270
398, 509
72,841
496,064 1,920
187,478
434
167,683
806
46, 756
29
19,440
205
13,166
123
30, 729
109
30, 812
214
9,019
464
967
1,097
1,195
1,530
2,275
428
1,063
M ountain.
Montai
Idaho.
634,346
44,550
38,453
15, 678
351,679
70, 275
113, 711
664, 683
200,817
97,275
194,426
28,513
37,129
39,616
66,907
-1 4
-2 7
-3
-7
-9
+3
-2 3
-3 2
-1 3
E. S. C entral... 16, 749
2,173
K entucky. .
3,982
Tennessee..
6,417
Alabama. —
M ississippi. . 4,177
65,481 32,052
10,883 3,201
7,080 2,081
2,632
936
25,861 16,953
5,046 3,030
13,979 5,851
88,384 35,140
21,960 8,371
18,823 7,519
17,676 8,783
6 , 572
1,617
3,413 1,282
8,808 3,052
11,132 4,516
6,478 10,663 19, 288
1,952 1,563 7,587
1, 551 3,556 3,120
992 1,162 2, 677
364 1,018
644
766
524
432
424 1,927 2,152
483 1,567 1, 968
32,448 17,361
'851
1,189
2 , 802 1,988
2,641 2,525
5,031 1,961
3,556 2, 631
8,014 4,376
859
3,120
4,907 2,170
0
1,188
S. Atlantic.
Delaware__
M aryland..
D ist. of Col
Virginia.. .
W. Va.........
N . C _____
S. C - ........ .
Georgia----Florida-----
9,323
1,451
1,018
401
2,800
582
3,071
-7
+3
-7
-1 5
New
79,232 72,724 142,688 1,086, 779 502, 640 7, 529,384 8,701,559 68,133
6,924 16,846
2,871 8,947
237 2, 632
3, 816 5,267
- 2
Total
SupActive
plePersonal menfile,
Nov. 30, visits
tal
1938
place
ments
204
M o n th l y L a b o r R e v ie w — J a n u a r y 1 9 3 9
T a b l e 3 . —Operations of United States Employment Service, November 1938— Continued
MEN
Placements
Applications
Private
New
Active
Per
Per file, Nov.
30,
1938
Total
cent of
Public Total
cent of
N um change Regular
N um change
(over
1
ber
from
ber
from
Octo month)
Octo
ber 1
ber 1
Division and State
United States...................
. 170,174 98,27£
—T£
New England...................
M aine..........................
N ew Hampshire___
Vermont....................
Massachusetts_____
Rhode Island...........
Connecticut.............. .
.
.
.
39,173 71,895 795, 721 343,418
8,931
1,442
1,65S
915
2,031
76C
2 ,13C
5,488
534
1, 35S
370
1, 331
267
1,627
-1 6
+65
+23
-3
-3 6
-5 7
-2 3
3,477
35C
91c
175
912
17C
957
3,443 44,041 18, 999
908 8,428 2,045
294 5,040 1,316
545 1,972
618
700 16, 471 9, 953
49c 2,917 1,569
503 9,213 3,498
Middle Atlantic...............
N ew York........ ..........
New Jersey.................
Pennsylvania.............
. 15,868
. 8,191
. 1,382
. 6,295
9,154
5,404
1,152
2,598
-1 6
4, 765
2,427
612
1, 726
6,
714
2,787
23C
3, 697
169, 703 73,424
103, 818 44, 391
19, 384 6,089
46, 501 22,944
East North Central.........
Ohio.............................
Indiana........................
Illinois..........................
Michigan__________
Wisconsin...................
. 24,307 16, 249
. 5,043 2,551
2,775 2,464
6 , 913
5,392
6,126 4,067
3, 450 1,775
-6
-1 2
-0
-0
8 ,2 2 0
8,058
2,492
311
1,521
2,059
1, 675
132,872
27, 887
24, 874
20,103
35,025
24, 983
West North Central___
M innesota..................
Iowa..............................
Missouri......... _..........
North Dakota.............
South Dakota............
Nebraska.....................
Kansas.........................
18,914
3,583
5,800
2,341
. 1,435
1,075
2,428
2,252
8,346
2.040
2,262
1,186
1,083
573
514
South Atlantic..................
Delaware__________
Maryland................
District of Columbia.
Virginia.......................
West Virginia.............
North Carolina........ .
South Carolina..........
Georgia........................
Florida.........................
East South Central_____
K entucky_.................
Tennessee.................. .
Alabama.................. __
M ississippi.................
West South Central.........
Arkansas.............. .......
Louisiana__________
Oklahoma...............
Texas............................
M ountain______ _______
M ontana___________
Id a h o ............. ..............
Wyoming____ _____
Colorado___________
N ew M exico...............
Arizona.........................
U tah____ ____ ______
Nevada.........................
Pacific................... ................
Washington.............. ..
Oregon.............. ............
California___________
Alaska...................................
Hawaii.............. ....... ............
24,083
637
1, 938
1,047
4,111
2 , 370
5, 836
2,739
4,252
1,153
13,178
1,652
2 , 800
4, 777
3, 949
30, 253
1, 895
3, 033
1, 722
23, 603
16, 786
1,700
9,096
300
1,124
935
1,052
1, 446
2 , 220
494
1,525
.
.
2 ,1 1 1
876
1,768
6,463
2,041
1,238
589
17, 255
1,138
2, 263
13,854
2511
3481
688
-4
-2 6
-1 3
-8
-1 6
-7
-4
+5
-4 0
-1 8
-1 8
-2 2
-1 4
-1 2
-1 6
-2 7
-4 4
-1 3
0
4,967
352
1,075
2,823
717
22,331
740
1, 495
937
19,159
•11, 548
514
1,377
243
961
5, 996
1, 331
754
372
10, 951
825
1,044
9,082
69
80
1 Adjusted for number of working days in month.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
-2 0
-3
-1 4
-1 7
-9
-1 4
-3
-4 9
-1
-5 6
-4 6
-5 5
+20
-4 0
-6 3
-3 9
-4 6
-6 8
-3 8
+1
+ 2
+ 17
-1 6
-8
-4 1
-1 2
-4 4
-1 5
1,06£
1,410
1,916
3, 111
714
57,065
11,467
11,495
7,871
18, 412
7,820
2,757 10, 568 6 6 , 725 23, 747
885 1,543 16,005 5, 611
620 3, 538 14,187 4, 889
371 1,155 12, 511 5,891
327
352 5,151
928
227
502 2,673
849
161 1,914 7,134 2,094
166 1,564 9,064 3, 485
3, 988 14, 987 107, 639 52, 312
179
337 1,929
499
519
814 15, 006 4,641
370
112
6,174 2,389
563 3,059 16,511 7,826
817
924 11, 577 3, 713
762 3, 616 27, 316 15, 687
189 2,245 11,307 6,805
589 2, 727 13, 828 7, 929
0
1,153 3, 991 2,823
3,466 8 , 2 1 1 53, 532 27,913
123 1,300 7, 262 3, 911
625 1,725 10, 981 5, 580
2,151 1,954 14, 400 6,487
567 3,232 20,889 11, 935
5,166 7, 922 88,143 39, 528
220
1.155 7,938 4,115
1,097 1,538 14. 653 6,781
156
785 14, 842 6,616
3, 693 4,444 50. 710 2 2 , 016
3,984 5, 238 41, 344 12,624
239 1,186 4,461 1,248
133
734 7,150 2. 512
94
633 3,681
810
307
807 9, 778 2,933
1,729
467 5,157 1,345
1, 035
710 4.133 1,944
191
484 5,501 1,456
256
217 1,483
376
3, 301 6 , 304 90, 5C5 37, 037
181
313 10, 650 4,176
629 1,219 11,752 6,074
2,491 4, 772 68,103 26, 787
19
182
592
402
301
268
625
367
- 5 5,913,847
-2 1
-2 4
-2 9
-2 7
-2 9
+3
-6
+4
+17
-1 3
-1 0
-1 8
-1 0
+9
-6
-4 0
+ 2
-4
-5
+9
-1 0
-1 6
-1 2
+22
-1 2
-3
-1 0
-7
-5
+10
- 2
+20
-4 0
+9
-1 7
-9
+37
+7
-5
-2 4
-9
-1 7
-4
+18
-1 5
+ 8
-3
+12
+23
+21
+ 8
-9
+ 8
+7
+15
+13
+16
+15
+ 39
-1 7
707,873
10,941
60,355
32,304
39,318
146,972
120,800
104,341
113,582
79,260
397,452
77, 349
116,667
129,191
74,245
366,785
60, 482
95,843
34, 299
176,161
167, 726
27, 320
19, 949
7,126
39,104
29,450
22,013
19, 750
3, 014
403,407
119, 346
65,754
218,307
1,320
4, 388
205
E m p lo y m e n t O ffices
T a b l e 3 . —Operations of United States Employment Service, November 1938— Continued
WOMEN
Placements
Applications
Private
D ivision and State
Total
N ew
Percent
of
Total
N um change Regular
ber
from (over 1
month)
Octo
ber 1
United States____ _______________
80,625
79,796
+ 2
N ew England................................ .
M aine____________ _____
New Hampshire___ _______ .
Vermont_______ ________ .
Massachusetts___ ___________
Rhode Island............. ..............
Connecticut_______ __________
4,031
297
342
246
1,048
552
1,546
3,932
295
326
242
1,043
482
1,544
-1 3
-3 9
2,580
-1
- 8
- 6
-2 2
-1 2
217
163
768
320
892
M iddle Atlantic..................................
N ew Y ork....................... .
N ew Jersey..................................
Pennsylvania_____ ___________
East North Central..................
Ohio..............................
Indiana_____________
Illinois.........................
M ichigan.................... .......
W isconsin._____________
West North Central_____
Minnesota_____ ____ _
Iowa...............................
Missouri____________
North Dakota________
South Dakota........ .
..
Nebraska.____ ________
Kansas__________ ____
South Atlantic............ .........
Delaware_________
Maryland______ ____ _
District of Columbia______
Virginia_____________
West Virginia.......... .
North Carolina______
South Carolina...............
Oeorgia....................
Florida.........................
East South Central.........
K entucky.......... .......
Tennessee_______
Alabama________
M ississippi_________
West South Central..
Arkansas......... .
Louisiana____ _____
Oklahoma............... . .
Texas.......................
M ountain...................
M ontana..............
Idaho..................
W yoming.............. .
Colorado____________
N ew Mexico......... .......
Arizona____ ______
U tah____________
Nevada.......................
Pacific...............................
Washington_______
O regon.._________
California.......... ...........
Alaska..................
Hawaii............... ...........
12,859
6,948
2,874
3,037
16,755
3,478
3,176
5,852
2,096
2,153
7,714
1,846
2,153
1,109
1.009
477
519
601
8,365
552
864
1,594
920
1,186
2,178
381
655
35
3,571
521
1,182
1,640
228
13,340
541
1,322
1,295
10,182
5,885
219
489
144
725
3,088
585
414
12,649
6,864
2,867
2,918
16,626
3,469
3,154
5,829
2,086
2,088
7,619
1,826
2,135
1
221
8,050
587
338
7,125
14
41
1 ,1 0 2
997
455
506
598
8,265
551
864
1,590
909
1,185
2,156
365
645
Adjusted for number of working days in month.
115652— 39-------14
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
40,059 291,058 159,222
220
21,440
2,455
2,040
660
9,390
2,129
4, 766
13, 053
1,156
'765
318
7,000
1,461
2,353
-4
-1 5
—14
-2 0
—1 0
-2 6
+28
-7
+ 1
+3
+4
-7
3,160
1,007
-1
9,617
1,825
+1
-3
+ 6
-1 2
-3
+ 0
-1 4
+ 2
-3
+42
+13
-1 6
+12
- 8
-3 0
+16
-4
+ 0
- 1
-1 8
-4
-1 3
0
3,534
520
1,180
1,619
215
13,302
535
1,313
1,288
10,166
5,824
193
482
139
716
3,087
577
411
219
7,993
586
333
7,074
14
38
Active
file,
Percent N ov. 30,
of
1938
N um change
ber
from
Octo
ber»
1 ,6 6 8
2 ,2 1 1
2,874
1,373
1,334
3,721
1,067
931
621
317
205
263
317
5,031
285
448
727
632
713
1, 513
239
474
0
+ 2
+3
-1 2
+39
-5 3
+16
-4 5
-5
0
+30
+17
-9
- 2
0
-4
+26
+20
+66
+14
- 0
+25
-4 9
+3
-2 6
-3 2 |
2,797
326
858
1, 449
164
5,074
370
962
452
3,290
1,848
116
298
172
371
425
319
174
73
3, 531
350
218
2,963
5
20
51,240 26,854
2,976
6,789
18,083 11,728
52,008 25,828
8,960
4,648
12,437
6,830
9,915
4, 525
11,957
6,496
8 ,739
3,329
21,659 11,393
5,955
2,760
4,636
2,630
5,165
2,892
1,421
689
740
433
1,674
958
2,068
1,031
36, 725 21,737
920
233
4,682
2, 522
4,012
2, 176
5,160
2,933
3,174
1,667
11,326
6 , 598
2,549
1,937
3,796
2 ,6 8 6
1,106
985
13,700
8,332
2,009
1,252
3,739
2,045
2,569
4,617
3.335
2,466
27,389 14,496
1,522
804
4,157
2, 547
4,057
1,809
17,653
9,336
8,852
3,959
648
386
986
526
567
208
2,993
1,051
956
394
986
642
1,468
663
248
89
32.974 18, 702
2,353
1,501
2 , 682
1,592
27, 939 15, 609
82
68
117
96
+15
—20
-1 4
-1 4
-1 6
+16
-7
-3 8
- 2
-2
-7
+5
—9
+20
-1 7
+ 8
+3
- 2
-2 5
+3
+4
-1 5
—14
+22
-2 6
- 0
-2 1
- 2
+ 2
-1 0
+5
-3
-1 3
-1 4
-3
+ 8
-1 9
- 6
+ 2
+ 8
-1 2
-5
-1 8
-5
-4
-3 4
+ 8
-
+4
10
+11
+162
-3 3
1,615, 537
185,827
9, 149
10,492
2, 970
103,398
23,852
35,966
465,575
171,145
50,693
243, 737
293,118
67,479
52,498
55, 793
92,482
24,866
124,899
38j 492
20,760
32| 984
5,410
7,470
Ì, 439
12; 344
205,759
3,957
15, 525
17,277
13,542
23, 933
47, 621
26,065
30,898
26,941
93,639
19,166
29,907
31,665
12,901
91,507
10, Oil
23i 407
7,802
50', 287
34, 583
öl 246
2,044
1, 519
10,861
6,116
4,456
3,847
494
119, 677
17,997
14,665
87i 015
144
809
206
M o n th l y L a b o r R e v ie w — J a n u a r y 1 9 3 9
T
able
4 . — Operations of United States Employment Service, November 1938
VETERANS
Applications
Placements
New
Private
Division and State
Active
Percent file,
Percent
Pub
Nov.
of
Total
Total
of
Regular lic
Num change 30,1938
Num change (over 1
from
ber
from month)
ber
Octo
Octo
b er 1
ber i
United States....... - --------- ------------- 11. S99 6,296
New England------------------------------
660
102
111
358
32
64
46
178
37
186
97
18
127
2,060 5,303 42,189 13,894
-1 7
202
22
-1 2
+52
302
70
47
26
81
19
59
2,684
500
392
105
164
513
967
82
71
31
539
76
168
2,047
959
233
855
+12
38
+54
-1 7
-6 9
-1 4
8
66
480
263
99
118
-2 2
195
74
38
83
363
129
12
222
5,615
2,156
1,038
2,421
East North Central_______ ______ 1,671 1,043
354
186
176
150
538
390
320
195
Michigan....................... - ................
283
122
W iscon sin .....................................
-9
-1 7
0
-1 2
396
55
72
91
131
47
628
168
26
148
125
161
7,711
1,568
1,510
1,391
1,541
1,701
2,634
515
514
399
763
443
-1 5
-4
-1 7
+5
-2 9
181
57
52
18
15
- 6
11
950
152
374
82
30
61
4,302
958
1,065
808
247
183
453
588
5,209
1,132
252
293
297
24
33
91
142
1,805
23
172
197
214
123
481
189
253
153
929
164
218
281
266
1,395
146
226
416
607
722
72
137
52
141
69
175
53
23
2, 217
232
234
1,751
35
N ew Hampshire--------------------Vermont________ ____ ________
Massachusetts------- -------------Rhode Island_________________
Connecticut--------------------------Middle Atlantic__________________
843
392
N ew Jersey------ ---------------------Pennsylvania........ .........................
111
West North Central--------------------M in n e s o ta ...___ - - -----------Missouri------------------------------North D akota________________
South Dakota . . . --------------Nebraska__________ _______
Kansas______________________
South Atlantic_____ _________
Delaware____________________
Maryland ________ _________
District of Columbia--------------Virginia------ ------ ------------------West Virginia________________
North Carolina------------- ------South Carolina----------------------Georgia________________ -- --East South Central______________
K entucky____________________
Tennessee____________________
Alabama_________________
M ississippi------ --------------------West South Central______________
Arkansas............................ ..........
Louisiana............... .........................
Oklahoma............ ..................... -Texas-------------- --------------------M ountain----------------------------------M ontana__________________ Idaho-------------- ---------------- -W yoming____________________
Colorado............. ............. ..............
N ew Mexico_________________
Arizona.................. ........................
U tah___________________ ____
N evada-------- -----------------------Pacific--------------------- ------------------Washington___________ ______
Oregon__________________ ____
California.........................................
Alaska...................................................
H aw aii-------------- ----------------------
340
1 ,6 8 8
309
678
172
76
107
157
189
1,441
55
103
106
304
162
284
142
212
20
-2 9
-2
-1 9
+10
738
157
304
90
46
46
36
59
531
21
59
82
66
79
94
29
101
73
0
786
271
223
42
87
217
252
118
24
94
1,735 1,276
66
131
83
146
169
96
1,289 1,031
1,044
546
49
161
135
218
12
76
154
70
93
113
118
182
44
93
25
47
1,675 1,044
105
75
221
82
1,349
887
5
33
4
23
i Adjusted for number of working days in month.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
-1 3
5
63
-3 7
-3 0
-2 7
-1 3
-3 4
9
19
189
4
25
-2 0
22
-3 4
+ 11
-3 4
-4 5
-3 2
34
40
32
5
27
+1
+35
159
0
+12
-4
-3 5
- 2
-5 0
-3 3
-4 9
+21
-4 6
-6 7
-7
-5 9
-6 4
-6 9
+10
-3 2
0
-1 5
-3
-4 4
-1 2
-6 2
-2 0
22
48
76
13
237
15
52
11
159
233
24
13
3
25
56
87
8
17
266
16
52
198
2
0
121
130
910
34
44
24
238
83
190
113
111
73
515
181
130
134
70
459
65
63
73
258
498
112
83
64
84
20
64
49
22
631
30
139
462
28
19
1 ,0 1 0
120
882
621
753
612
1,058
369
560
234
2,258
513
514
696
535
4,723
424
688
1,083
2,528
2,809
351
450
316
653
214
376
341
108
6,802
716
732
5,354
53
23
11
-5
380,469
-1 8
-1 4
-3 3
—24
-2 8
+23
31,906
2,282
2,134
731
18,984
2,873
4,902
+ 2
-5
+4
-2 2
- 8
-1 0
- 8
+7
+3
-3 0
+4
-1 1
— 11
+13
-2 2
- 8
-3
-1
-2 5
-7
- 8
-9
+4
-1 6
-2 0
+25
-3 6
+ 6
-2 9
+ 2
+45
-1 0
+13
-1 3
-7
-9
+10
+29
-2 6
+ 1
+ 1
-5
+16
+ 2
+38
- 8
0
+10
+15
+13
+21
+15
+40
-3 1
80,975
18,567
10,699
51,709
96,631
29,069
15,116
19,228
24, 613
8,605
42,420
13,457
5,836
13,530
1,333
2,080
2,089
4,095
39,167
859
3,591
3,262
1,884
7,487
5,007
4,370
5,530
7,177
20,929
5,044
7,246
6,519
2 ,1 2 0
20,693
3,427
4,860
2, 646
9,760
11,837
2,014
1,247
571
2,624
1,948
1,705
1,490
238
35,480
10,453
4,869
20,158
120
311
Building Operations
SUMMARY OF BUILDING CONSTRUCTION IN
PRINCIPAL CITIES, NOVEMBER 1938 1
IN NOVEMBER there was a decrease of 9.4 percent from October
in total permit valuations, a smaller drop than the usual seasonal
decline. Decreases were shown for all classes of construction. The
greatest decrease, 23.2 percent, occurred in the value of permits issued
for additions, alterations, and repairs. The value of new residential
buildings declined 4.7 percent and the value of new nonresidential
buildings showed a decrease of 8.9 percent. These data are based on
reports received by the Bureau of Labor Statistics from 2,049 identical
cities.
November permit valuations for residential buildings were 67.1
percent higher than in November a year ago. This was the fifth
consecutive month for which new residential permit valuations ex
ceeded by more than 50 percent those of the corresponding months of
1937. The value of new nonresidential buildings increased 47.2
percent, while additions, alterations, and repairs declined 7.1 percent.
Total permit valuations were 43.2 percent higher than the level of
November 1937. Data for November 1937 and 1938 are based on
reports of building activity received from 1,584 identical cities.
C o m p a r is o n o f N o v e m b e r 1 9 3 8 w i t h O c to b e r 1 9 3 8
A summary of building construction in 2,049 identical cities in
October and November 1938 is given in table 1.
T able 1.— Summary of Building Construction for Which Permits Were Issued in 2,049
Identical Cities, October and November 1938
Number of buildings
Class of construction
Novem
ber 1938
Per
October centage
1938
change
Permit valuation
November
1938
October
1938
Per
centage
change
All construction--------- --------------------
52,907
68,
743
-2 3 .0
$146,829,950
$162,088,787
-9 .4
Additions, alterations, and repairs___
13,926
10,368
28,613
15,543
12,890
40,310
-1 0 .4
-1 9 .6
-2 9 .0
74,331,638
50,337,072
22,161, 240
77,977,617
55,268,672
28,842,498
- 4 .7
- 8 .9
-2 3 .2
i More detailed information by geographic divisions and individual cities is given in a separate pamphlet
entitled “ Building Construction, November 1938,” copies of which will be furnished upon request.
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Federal Reserve Bank of St. Louis
207
208
M o n th l y L a b o r R e v ie w — J a n u a r y 1 9 3 9
A summary of permit valuations of housekeeping dwellings and the
number of families provided for in new dwellings in 2,049 identical
cities having a population of 1,000 and over, is shown in table 2 for
November compared with October 1938.
T a b l e 2 . — Permit Valuation of Housekeeping Dwellings and Number of Families
Provided for in 2,049 Identical Cities, October and November 1938
Permit valuation of housekeeping
dwellings
Type of dwelling
November
1938
Number of families pro
vided for in new dwellings
Per
Novem
October 1938 centage ber 1938
change
October
1938
Per
centage
change
$74, 081,751
$76,305,158
-2 .9
20,186
21,027
-4 .0
52,312,385
2,351, 587
19,417,779
56,869,116
2,862,986
16, 573,056
- 8 .0
-1 7 .9
+17.2
13,076
965
6,145
14,592
1,170
5,265
-1 0 .4
-1 7 .5
+16.7
• Includes 1- and 2 -family dwellings with stores.
Includes multifamily dwellings with stores.
2
Comparison of November 1938 with November 1937
Table 3 presents a summary of the number of buildings and value
of permits issued in 1,584 identical cities in November 1938 compared
with the corresponding monthwof'l937.
T a b l e 3 . — Summary of Building Construction for Which Permits Were Issued in 1,584
Identical Cities, November 1937 and November 1938
Number of buildings
Class of construction
New nonresidential______ ___ ______
Additions, alterations, and repairs___
Novem
ber 1938
Per
Novem centage
ber 1937 change
Permit valuation
November
1938
November
1937
Per
centage
change
51,910
45,533
+14.0
$143,371,628
$100,098,136
+43.2
13,540
10,070
28,300
7,941
9,353
28,239
+70.5
+ 7 .7
+ 0 .2
72,916,028
48, 795,192
21,660,408
43,636,939
33,149,729
23,311,468
+67.1
+47.2
- 7 .1
Table 4 shows a comparison of the value of permits issued for
housekeeping dwellings and the number of families provided for in new
dwellings in 1,584 identical cities with a population of 2,500 and over in
November 1938 with the corresponding month of the preceding year.
T a b l e 4 , —Permit Valuation of Housekeeping Dwellings and Number of Families
Provided for in 1,584 Identical Cities, November 1937 and November 1938
Permit valuation of housekeeping
dwellings
Type of dwelling
All types_____ _ _ ___ _ _ _ _ _ _
2 -familÿ
i .................._ . . . . . . . ____
Multifamily 2__________ _____ ____
1
2
November
1938
November
1937
Per
Novem
centage ber
1938
change
$72,666,141
$42, 925,039
+69.3
19,783
50,932,835
2,320, 527
19,412, 779
30,050,280
1, 8 8 6 , 525
10,988, 234
+69.5
+23.0
+76.7
12, 710
931
6,142
Includes 1- and 2-family dwellings with stores.
Includes multifamily dwellings with stores.
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Federal Reserve Bank of St. Louis
Number of families pro
vided for in new dwellings
Per
Novem centage
ber 1937 change
10,845
+82.4
7,347* +73.0
708
+31.5
2,790 + 1 2 0 .1
209
B u i l d i n g O p e r a tio n s
Construction During First 11 Months, 1937 and 1938
Cumulative totals for the first 11 months of 1938 compared with
the same months of the preceding year are shown in table 5. The
data are based on reports received from cities having a population
of 2,500 and over.
T a b l e 5 . —Permit Valuation of Building Construction, First 11 Months of 1937 and of
1938, by Class of Construction
Permit valuation of building construction, first
1 1 months of—
Class of construction
1938
All c o n s tr u c tio n ____________ _________
N ew residential.........................................................
New nonresidential......... ........................... .............
Additions, alterations, and repairs.......... ............ .
1937
Percentage
change
$1,552,792,136
$1,496,511,415
+ 3 .8
780,866,832
485,872,429
286,052,875
673,810,583
484,763,987
337,936,845
+15.9
-1 5 .4
Table 6 presents the permit valuation of housekeeping dwellings and
number of family-dwelling units provided in cities with a population
of 2,500 and over for the first 11 months of 1937 and 1938.
T a b l e 6 . —Permit Valuation of Housekeeping Dwellings and Number of Families
Provided for in New Dwellings, First 11 Months of 1937 and of 1938, by Type of
Dwelling
Permit valuation of housekeeping
dwellings
Type of dwelling
First 11 months of—
1938
All types............. ....................................... $772,505,017
1 - family________ ____________ _____
2 - fam ily '...................................................
Multifamily >_________ _____ _______
510,041,076
29,799,024
232,664,917
1937
Per
centage
change
Number of families provided
new dwellings
First 11 months
of—
1938
1937
Per
centage
change
$663,023,281
+16.5
210,050
165,727
+28.0
489,554,389
28,981, 562
144,487,330
+ 4 .2
+ 2 .8
+61.0
128,634
11,339
72,077
112,862
10,462
42,403
+14.0
+ 8 .4
+70.0
1 Includes 1 - and 2-family dwellings with stores.
* Includes multifamily dwellings with stores.
The information on building permits issued during October and
November 1938 is based on reports received by the Bureau of Labor
Statistics from 2,049 identical cities having a population of 1,000 and
over. The data for November 1937 and 1938 are based on reports
from 1,584 identical cities with a population of 2,500 and over.
The information is collected by the Bureau of Labor Statistics from
local building officials, except in the States of Illinois, Massachusetts,
New Jersey, New York, North Carolina, and Pennsylvania, where
the State departments of labor collect and forward the information
to the Bureau. The permit valuations shown in this report are esti
mates made by prospective builders od applying for permits to build.
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Federal Reserve Bank of St. Louis
210
M o n th l y L a b o r R e v ie w — J a n u a r y 1 9 3 9
No land costs are included. Only building projects within the cor
porate limits of the cities enumerated are included in the Bureau’s
tabulation. In addition to permits issued for private and municipal
building construction, the statistics include the value of contracts for
Federal and State buildings in the cities covered by the report.
Data concerning public buildings are collected by the Bureau from
the various Federal and State agencies having the power to award
contracts for building construction. In November 1938 the value of
these buildings amounted to $17,668,000; in October 1938,- to
$17,853,000; and in November 1937, to $6,699,000.
Construction From Public Funds
The value of contracts awarded and force-account work started
during November 1938, October 1938, and November 1937 on con
struction projects financed wholly or partially from various Federal
funds is shown in table 7.
T a b l e 7. — Value of Contracts Awarded and Force-Account Work Started on Projects
Financed From Federal Funds, October and November 1938 and November 1937 1
Value of contracts awarded and force-account
work started
Federal agency
November
1938
$160, 731,766
Public Works Administration:
Non-Federal:
N . I. R. A ._________________________________
E. R. A. A ____ _____________________________
Federal projects under The Works Program.............. .......
Regular Federal appropriations------ ------------------- ------ 1
2
3
October
1938 3
3
$250,505, 779
November
1937 3
$85,426,258
13,878,659
21,621,033
476,373
676,653
89,849,417
1,555,023
54,772,014
437,936
113, 577, 272
5,555,726
97,484,658
4,123,074
33, 564,177
11,347,291
35,915,343
Preliminary, subject to revision.
Revised.
Includes $11,829,154; contracts awarded'for'housing projects under the U . S. Housing Authority.
The value of public-building and highway construction awards
financed wholly from appropriations from State funds, as reported by
the various State governments for November and October 1938 and
November 1937, is shown in table 8.
T
able
8 . — Value of Public-Building and Highway-Construction Awards Financed
Wholly From State Funds
Value of contracts
Typo of project
Public building-__ ________________________ . . ___
Highway construction_____________________ ____ ____
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
November
1938
$3,651, 020
4,456, 701
October
1938
$2,273, 623
5. 712.173
November
1937
$1, 319, 559
6 . 629. 309
Retail Prices
RETAIL PRICES OF FOOD IN NOVEMBER 1938
S u m m ary
RETAIL food costs decreased 0.4 percent between October 18 and
November 15, due primarily to a decline of 1.8 percent in the cost of
meats. Decreases in costs of food ranging from 0.1 percent to 1.8
percent were reported for 34 of the 51 cities included in the food
index.
The November index for all foods was 77.8 percent of the 1923-25
average. It was 7.0 percent lower than a year ago, when the index
was 83.6. Compared with November 1932, when the index stood at
65.6, the cost of food advanced 18.5 percent. This increase was
shared by every commodity group except beverages and chocolate,
which showed a decrease of 10.0 percent for the six-year interval.
The food cost index was 27.1 percent below the November 1929 level
when the index was 106.7.
D e ta ils b y C o m m o d ity G ro u p s
The cost of c e r e a ls a n d b a k e r y p r o d u c t s declined 0.5 percent between
October and November, continuing a downward movement which
began in January of this year. The net decrease for the 11 months
was 7.3 percent. During the month, 11 of the 13 items included in
this group dropped in price. The price of flour, which has tended
downward since August 1937, decreased 0.9 percent and was 15.8 per
cent lower than in November 1937. The decline for white bread
began in April 1938, and amounted to 0.5 percent in November.
Price decreases for white bread were reported from 9 cities, the largest
being 1 cent per pound for Birmingham and 0.5 cent per pound for
Denver. The price of white bread was 8.1 percent lower than a year
ago. Corn meal and soda crackers declined about 1.5 percent each.
Price changes for other items in this group were unimportant.
M e a t costs dropped 1.8 percent for the month and were 9.3 percent
lower than in November 1937. Lower costs were reported for all the
subgroups, reflecting price decreases for 18 of the 21 items included
in the group index. These decreases ranged from 0.5 percent for
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
211
212
M o n th l y L a b o r R e v ie w — J a n u a r y 1 9 3 9
plate beef and red salmon to 4.0 percent for loin roast. The average
decrease for beef and veal was 1.4 percent and for pork, 2.7 percent.
A decrease of 0.7 percent in the price of leg of lamb more than offset
the slight increases recorded for the other 3 lamb items. The price
of roasting chickens dropped 3.4 percent and was 17.9 percent lower
than a year ago. The cost of canned salmon decreased 0.6 percent.
The slight increase of 0.1 percent in the cost of d a i r y 'p r o d u c ts was
due chiefly to an advance of 0.4 percent in the average price of butter.
Higher butter prices were reported for 24 cities and lower prices for
16 cities. The price of butter, however, was 23.2 percent below the
level of the corresponding period of a year ago. The average price
of fresh milk did not change. The price of cream increased 0.7 per
cent, while prices of evaporated milk and cheese decreased 0.4 percent
and 0.2 percent respectively.
The advance of 1.2 percent in the average price of e g g s was the net
result of increases reported for 41 cities and decreases for 10 cities.
This seasonal increase was considerably less than usual. Egg costs
for November were 2.6 percent above the level of a year ago.
The average cost of f r u i t s a n d v e g e ta b le s increased 0.4 percent, due
entirely to an advance of 0.6 percent in the cost of the fresh items.
Increases reported for 7 of these items ranged from 0.9 percent for
apples to 7.7 percent for sweetpotatoes. White potatoes, which
constitute approximately 30 percent of the total expenditure for the
fresh items, showed an increase of 2.4 percent. Celery rose 6.1
percent; carrots, 5.0 percent; bananas, 2.8 percent; and onions, 1.7
percent. Decreases were recorded for the remaining 6 fresh items, the
largest being 23.0 percent for spinach. The average price of oranges
declined 6.1 percent and reached the lowest level recorded by the
Bureau for any November in the past 20 years.
The decrease of 0.3 percent in the cost of the canned goods was a
continuation of the downward trend which began in the summer of
1937. Prices were lower for all items in the group with the exception
of canned peas, which remained unchanged.
A decline of 1.5 percent in the cost of the dried products was due
chiefly to a drop of 2.9 percent in the price of navy beans and a
decrease of 2.1 percent in raisins. Other changes were unimportant.
An advance of 0.1 percent in the cost of b e v e r a g e s a n d c h o c o la te was
mainly due to an increase of 0.4 percent in the price of coffee. Higher
coffee prices were reported from 32 cities. This was a reversal of the
price trend for coffee which has been downward since October 1937.
The price of tea decreased 0.3 percent, while cocoa showed an increase
of 0.7 percent. No change was recorded for chocolate.
The cost of f a t s a n d o ils declined 0.8 percent as a result of a 2.6
percent decrease in the price of lard. The average price of lard for
November was 22.9 percent below the level of the corresponding
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Federal Reserve Bank of St. Louis
213
R e ta il P r ic e s
month in 1937. Shortening packed in cartons showed a price drop
of 1.0 percent, while the tin-packed variety rose 2.0 percent. Prices
for other items in the group showed little or no change.
S u g a r a n d s w e e ts averaged 0.2 percent higher for November, re
flecting an increase of 0.3 percent in the price of sugar. Sugar prices
were higher in 13 cities and lower in 7 cities. The price of corn syrup
did not change. Molasses dropped 0.3 percent and strawberry
preserves, 0.6 percent.
Indexes of retail food costs for November and October 1938,
together with indexes for November 1937, 1932, and 1929 are shown
in table 1. The accompanying chart shows the trend in the cost of
all foods and of each major commodity group for the period from
January 1929 to November 1938, inclusive.
T able
1.— Indexes of Retail Food Costs in 51 Large Cities C o m b in e d b y Commodity
Groups, November and October 1938, and November, 1937, 1932, and 1929
[1923-25=100]
1938
1937
1932
1929
Oct. 18
Nov. 16
N ov. 15
Nov. 15
Commodity group
N ov. 15 3
All foods_______ ___ _____________________________
77.8
78.1
83.6
65.6
Cereals and bakery products______ _______________
Meats.......................... ......................... ..............
Dairy products................................................ ....................
Eggs-------------------------------------- --------------------------Fruits and vegetables— _______ _____ ___________
Fresh________ __ __________________________
Canned_______________ ____________ _______
Dried____ ____________________ ____ _________
Beverages and chocolate__________________ _____ __
Fats and oils........................................................... ............
Sugar and sw eets......... ......................... .............................
8 6 .8
87.2
94.9
77.3
94.0
73.3
70.0
65.8
78.4
50.4
49.0
67.6
50.6
73.8
50.0
58.8
93.2
77.4
87.2
55.9
54.0
75.0
57.7
66.4
6 6 .6
62.5
8 6 .1
* 55.6
* 53.6
75.3
58.6
66.3
67.1
62.3
1 0 2 .8
8 6 .6
84.9
56.2
53.5
80.5
64.1
70.1
74.8
67.1
106.7
98.2
118.8
1 0 2 .0
129. 5
103.9
104.2
94.9
108.5
108.9
91.8
76.2
» Aggregate costs of 42 foods in each city prior to Jan. 1, 1935, and of 84 foods since that date, weighted to
represent total purchases, have been combined with the use of population weights.
* Preliminary.
* Revised.
Prices of each of the 84 foods for 51 cities are combined with the use
of both consumption and population weights. Quantity weights for
each food include the average family consumption in each city, not
only of the food priced, but for groups of foods which are related in
kind and which seem to follow the same price trend. These weights
are based on the cost of living study of 1917-19. Population weights
are averages of the population in 1920 and 1930 for each city, including
adjacent metropolitan areas and cities of over 50,000 in the same region.
Prices of 57 of the 84 foods included in the index were lower in
November than in October, 21 were higher, and 6 were unchanged.
Compared with November 1937, 73 foods cost less, and 11 cost more.
Average prices of each of the 84 foods for 51 cities combined are
shown in table 2 for November and October 1938, and November 1937.
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Federal Reserve Bank of St. Louis
214
M o n th l y L a b o r R e v ie w — J a n u a r y 1 9 3 9
Retail Cost
of
Food
1023-25=100
Index Numbers
— T
1
/ Al l
Index Numbers
F ood s
D a i ry P ro d u c ts ^
<-3
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Federal Reserve Bank of St. Louis
-
<
1
__________
United States B ureau of Labor Statistics
215
R e ta il P r ic e s
T a b l e 2 . —Average Retail Prices of 84 Foods in 51 Large Cities Combined, November
and October 1938 and November 1937
[’Indicates the foods included in indexes prior to Jan. 1, 1935]
1938
1937
Article
Cereals and bakery products:
Cereals:
’ Flour, wheat______________ _______
’ Macaroni_____ ____________ ______
•Wheat cereal____________ ______
•Corn flakes_______________________ ______ 8 -oz. package—
•Corn meal............. ..................................
Hominy grits_____________________
•R ic e ...___________ _______________
•Rolled oats_______ _______________ _______________do___
Bakery products:
’ Bread, white................___ _ ________ ________ _____ .d o___
Bread, whole-wheat_______________
Bread, rye.................... ..................... .
Cake................. ............. ................ .........
Soda crackers____________________ ________ ______ do___
Meats:
Beef:
’ Sirloin steak_______ _______ ______ _____________ do___
•Round steak________ _____________ -----------------------do___
•Rib roast__________________ ______ ________ ______ do___
•Chuck roast_____________________
•Plate_________ ___________________ ______________do___
Liver.......................... ...............................
Veal:
Cutlets_____ _____________________
Pork:
•Chops___________________________
Loin roast.._______ ______________
•Bacon, sliced_____________________
Bacon, strip______ _______________ __________ ____ do___
•Ham, sliced_____ _________________ __________ ____ do___
Ham, whole______ _____ ______ ___ _______________do___
Salt pork.________________________ _________ _____ do___
Lamb:
Breast________ ___________________ _______________do___
Chuck______ _____________________
• L e g ....---------------------------------------- _ .....................do___
Rib chops______________________ . _______________do___
Poultry:
•Roasting ch ick en s_________ _ .
Fish:
Salmon, p in k ..______ ___ _________ __________ 16 oz. can..
•Salmon, red........ ......................... ...... _______________do___
Dairy products:
•Butter.................. ................ ............. ............
•Cheese......................................... . ______
Cream______________________________ ______ _____H p in t..
M ilk, fresh (delivered and store)_______
•M ilk, fresh (delivered)____________ ._ ______________ do___
Milk, fresh (store)_____ _____________ _______________do___
•M ilk, evaporated_____________ ______ ________ 14J3-OZ. can..
•E ggs.--------------------------------------------------Fruits and vegetables:
Fresh:
Apples___________________________ ______ _______ pound..
_______ do
•Bananas__ __________ ___ . . . _
Lemons________ _________ _ ._ ________ ____ dozen..
•Oranges...........
. _____ ________ _______________do___
Beans, green_____ _. . . ____ _
•Cabbage_________________________ ______________do___
Carrots______ _
________________ _____ ______bunch..
Celery............................... ._ _______ ________ ____stalk..
Lettuce_______ _______________ _ ______________ head..
•Onions___________ ____ _________
___..p o u n d ..
•Potatoes. _______________________
Spinach_________________________ _______________do___
Sweetpotatoes_____ ______________ ________ _____ .d o ___
Canned:
Peaches__________ _____ __________ _____ -.N o . 2 H can..
Pears......... ............................................... _______________do___
Pineapple________________________ _______________do___
Asparagus....... ....................... ............... . ________ No. 2 can..
Beans, green--------------------------------- _______________do___
i Preliminary.
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Federal Reserve Bank of St. Louis
N ov. 15 1
Oct. 18
N ov. 16
Cents
Cents
Cents
3.7
14.6
24.4
7.3
4.6
8.7
7.6
7.2
3.7
14.7
24.4
7.3
4.7
7.7
7.2
8 .1
8 .2
8 .2
9.3
9.5
24.9
15.5
9.3
9.6
25.1
15.8
8.9
9.8
25.4
17.6
38.4
35.2
29.7
23.3
15.5
25.0
39.1
35.9
30.0
23.6
a 15.6
25.4
41.5
38.4
33.7
26.1
17.9
25.1
42.7
43.3
44.7
31.5
25.5
35.9
30.5
47.2
28.8
32.7
26.6
36.8
31.0
48.0
29.5
2 0 .0
2 0 .2
34.1
28.6
43.1
36.2
49.7
29.9
25.2
8 .8
4.5
15.1
24.5
7.7
5.1
9.4
7.4
1 0 .1
27.5
34.3
14.6
24.7
31.0
38.3
29.4
30 4
35.8
1 2 .6
23.8
12.7
23.9
14.0
26.7
33.2
25.2
14.6
33.1
25.2
14.5
1 2 .2
1 2 .6
1 2 .2
1 2 .6
43.2
29.6
14.9
12.7
13.0
11.5
6.9
44.5
11.5
7.0
44.0
7.6
43.8
12.4
21.3
27.3
34.4
4.9
12.3
2 1 .2
4.9
1 2 .1
4.4
6 .2
6 .1
6 .2
24.2
26.2
9.8
2.5
5.5
7.6
24.3
27.9
10.3
36.6
34.2
12.4
3.0
5.1
8 .1
8 .6
3.7
1.9
3.6
1.9
7.3
4.0
1.9
6 .1
8 .0
6 .2
3.4
3.1
3.3
17.2
17.3
19.6
2 0 .6
2 0 .8
2 1 .6
2 1 .8
21.5
28.2
1 0 .6
s Revised
2 .6
5.3
7.2
8 .6
28.4
23.1
30.0
1 0 .8
1 1 .6
216
M o n th l y L a b o r R e v ie w — J a n u a r y 1 9 3 9
T a b l e 2 . —Average Retail Prices of 84 Foods in 51 Large Cities Combined, November
and October 1938 and November 1937—Continued
1938
1937
Article
Fruits and vegetables—Continued.
Canned—Continued.
•Beans with pork....................................
•Corn..........................................................
•P ea s........................................................
•Tomatoes_______________________
Tomato soup____________________ ________ iOH-oz. can..
Dried:
Peaches________ ____ ___________ ........... .............. .pound ..
•Prunes.................................... ............ _______________ do___
•R a isin s................................................ .......... 15-oz. package..
Black-eyed peas_________________ .......................... pound..
Lima beans____
•N avy beans..................... ...................... .............................. .d o___
Beverages and chocolate:
•Coflee.............................. ...............................
•Tea..................................... .............................
Cocoa.............................................................. ....................... 8 -oz. can ..
C h o co la te..____ _______ _____________
Fats and oils:
•Lard__________ ________ ____________
Shortening other than lard:
In cartons_______________________ .............................. .d o ___
In other containers_______________
Salad o il......................................... ............ _____ __________ p in t..
M ayonnaise..__________________ ____
•Oleomargarine_____ _________________ ______________pound..
Peanut butter............................................ ............. .................. do___
Sugar and sweets:
•Sugar___________ ___________________
Corn sirup_____________________ ____ ________ -24-oz. can..
Molasses___________ _______________
Strawberry preserves_____ ________ _ .. ______ _____ pound..
N ov. 15
Oct. 18
N ov. 16
Cents
Cents
Cents
7.3
1 1 .0
14.3
8 .6
7.4
14.9
9.1
9.5
7.7
9.2
6 .1
22.9
17.8
7.3
ll.l
14.4
8.7
7.4
8 .0
1 2 .2
14.8
9.1
9.7
7.8
9.2
6.3
16.5
2 2 .8
25.8
18.4
16.0
9. 1
7.9
1 0 .2
10.3
8.5
1 0 .1
7.2
16.2
17.9
8.5
16.2
12.4
12.7
16.1
13.3
20.5
24.5
17.3
16.9
18.4
13.4
24.6
17.3
16.9
18.5
13.8
20.4
25.1
17.6
17.7
19.1
>5.1
13.9
13.6
21.4
5.6
14.4
14.5
22.4
8 .6
* 5.2
13.9
13.6
2 1 .2
2 0 .1
2
1 0 .1
16.5
! Revised
* Quotations for 1938 are for sales in units of 10 pounds each. Prior to November 1937, prices were quoted
on sales in units of various size. The change to a common unit, 10 pounds, resulted in a reduction of Ho
of 1 cent per pound at the time of revision.
Details by Regions and Cities
The average decline of 0.4 percent in the cost of food between
October and November was the net result of lower costs in 34 cities
and higher costs'in 14 cities. Six of the nine geographical areas con
tributed to this decline. The largest decreases were 1.8 percent for
Providence, 1.6 percent for Cleveland, and 1.5 percent for Mobile
and New Orleans. In all four cities, costs for fresh fruits and vege
tables were lower, contrary to the general movement for this group
and decreases for meats were greater than for most cities. In Provi
dence, flour dropped 4.5 percent, and the price of white bread fell
2.8 percent, continuing a downward trend which began in September.
In the other three cities, egg costs decreased, while the general move
ment for eggs was upward.
The greatest relative increase, 1.8 percent, was recorded for Rich
mond, the only city in the South Atlantic area showing a rise in food
costs. Denver was the only other city reporting an advance of as
much as 1.5 percent. Costs of fresh fruits and vegetables rose sharply
in both of these cities and increases for eggs were more than average.
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Federal Reserve Bank of St. Louis
217
R e ta il P r ic e s
T a b l e 3. — Indexes of the Average Retail Cost of A ll Foods, by Regions and Cities,1
November and October 1938, and November 1937
[1923-25 = 100]
1938
1937
Region and city
1938
1937
Region and city
Nov.
15
Nov.
15
Oct. 18 Nov. 16
United States___________
77.8
78.1
83.6
New England....... .............
Boston___ _________
Bridgeport___ _____
Fall River_________
Manchester________
New H aven________
Portland, Maine___
Providence.......... .......
76.2
74.6
80.4
78.8
79.2
79.7
75.9
74.8
76.7
74.9
80.9
78.8
79.1
80.5
76.1
76.2
83.8
81.9
88.9
86.4
83.5
87.9
82.8
83.7
Middle Atlantic..................
Buffalo.........................
Newark____________
New York...............
Philadelphia...............
Pittsburgh........... .......
Rochester........... .........
Scranton......................
79.0
77.4
81.2
81.2
77.7
77.5
76.7
72.3
79.2
76.6
81.3
81.2
78.6
77.8
76.5
72.8
84.9
81.1
88.5
87.3
83.3
83.5
83.1
77.3
East North Central........ .
C hicago..._________
Cincinnati_________
Cleveland_________
Columbus, Ohio____
Detroit_________ —
Indianapolis.............
Milwaukee______
Peoria__________ .
Springfield, III____ .
77.5
78.3
78.7
77.6
75.1
76.3
77.3
79.9
78.6
76.8
*78.1
79.4
78.9
78.9
75.2
*76.5
77.2
79.9
77.6
76.9
83.6
85.0
83.5
83.7
80.9
82.4
81.8
86.9
81.5
80.5
West North Central...........
Kansas C ity _______
Minneapolis........ .......
Omaha____________
St. L ou is.................. .
St. Paul..................... .
80.2
80.6
82.7
74.3
82.2
78.8
80.1
80.7
82.2
73.3
82.7
78.0
85.2
83.4
87.5
80.2
South Atlantic_____ ____
Atlanta—__________
Baltimore__________
Charleston, S. C. . . .
Jacksonville. ...........
N orfolk.......................
R ich m on d ________
Savannah__________
Washington, D . C ...
Oct. 18 N ov. 16
76.9
71.9
82.6
78.6
75.4
74.7
72.0
77.2
79.4
77.2
72.3
83.0
79.4
76.1
75.1
70.7
77.6
80.3
83.3
79.7
80.0
76.4
82.3
85.6
East South Central______
71.4
Birmingham_______
67.1
Louisville__________ * 80.0
73.5
M em p h is... ______
73.6
M obile_______ ___
71.9
67.5
80.7
74.3
74.8
77.4
72.8
87.1
79.3
78.0
West South Central_____
Dallas_____________
Houston________ _
Little Rock________
New Orleans_______
76.9
73.1
77.4
72.8
82.5
77.6
74.1
77.6
72.6
83.7
81.2
78.8
81.2
79.2
84.8
Mountain______________
B utte____________ _
Denver_______ ____
Salt Lake C ity_____
79.0
75.1
81.4
75.8
78.0
75.2
80.2
75.0
Pacific_____________ . . .
Los Angeles________
Portland, Oreg__ .
San Francisco___. . .
Seattle_____________
76.5
71.6
78.9
81.4
77.8
76.5
70.7
79.0
82.3
78.1
81.8
77. 5
8 6 .6
85.6
80.1
8 8 .0
82.8
80.9
75.3
83.4
8 6 .2
83.2
8 8 .0
84.1
1 Aggregate costs of 42 foods in each city prior to Jan. 1, 1935 and of 84 foods since that date, weighted to
represent total purchases, have been combined for regions and for the United States with the use of popula
tion weights.
* Preliminary.
* Revised.
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Federal Reserve Bank of St. Louis
218
M o n th l y L a b o r R e v ie w — J a n u a r y 1 9 3 9
R E T A I L P R I C E S OF C L O T H I N G A N D
T E X T I L E S , 1938
RETAIL prices of goods and services other than foods are collected
quarterly in the 32 cities, shown below, by personal visits of field
representatives. These prices are used primarily in computing the
indexes of changes in the cost of living.
New England:
Boston
Portland, Maine
Middle Atlantic:
Buffalo
New York
Philadelphia
Pittsburgh
Scranton
East North Central:
Chicago
Cincinnati
Cleveland
Detroit
Indianapolis
West North Central:
Kansas City
Minneapolis
St. Louis
South Atlantic:
Atlanta
Baltimore
Jacksonville
Norfolk
Richmond
Savannah
Washington, D. C
East South Central:
Birmingham
Memphis
Mobile
West South Central:
Houston
New Orleans
Mountain: Denver
Pacific:
Los Angeles
Portland, Oregon
San Francisco
Seattle
Specifications (descriptions of articles), representative of the
current retail market, were first introduced for use in retail price
collection in the spring of 1935. These are used as a guide in main
taining accuracy and comparability. In 1937 the descriptions were
revised and made more specific. Separate specifications were pro
vided for a greater number of qualities in order that important
market levels might be better represented. It is only since the use
of these later specifications that the collected price data have lent
themselves to the presentation of average prices as shown below for
clothing and textiles.
The prices are unweighted averages of approximately 129 quota
tions, four to a city, for each item. The following data were com
puted to assist in determining the quality of the prices at different
market levels rather than for making time to time comparisons,
hence the prices are averages of all quotations secured for March
June, and September 1938.
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Federal Reserve Bank of St. Louis
219
R e t a i l P r ic e s
R etail P rices
of
Selected I tems
of
Clothing
and
T extiles
Men's clothing
T rousers, work, cotton, khaki drill (8 oz. per yd.), vat dyed, Sanforized
shrunk, 4-leaf twill; pockets of boat sail drill (2.50 yd. per pound); full- Average
sized, well made; 35 to 36 yards per dozen, based on 28-inch fabric and price
29 to 42-inch size scale______________________________________ pair__ $1. 75
T rousers, work, cotton, khaki drill (2.50 yd. per pound), vat dyed, regu
lar finish; pockets of drill (2.85 yd. per lb.); fair workmanship; 33 to 34
yards per dozen, based on 28-inch fabric and 29 to 42-inch size scale
pair. _ 1. 24
Overalls, cotton, white-back denim (8 oz. per yd.), Sanforized shrunk,
high back, bib style, 46 to 48 yards per dozen, based on 28-inch fabric
and 32 to 42-inch size scale, triple-stitched seams, bar tacked at points
of strain; pockets of boat sail drill (2.50 yd. per lb.); fully trimmed
pair. _
Overalls, cotton, white-back denim (8 oz. per yd.), Sanforized shrunk,
high back, bib style, 42 to 44 yards per dozen, based on 28-inch fabric
and 32 to 42-inch size scale, triple-stitched seams, bar tacked at points
of strain, pockets of drill (2.85 yd. per lb.); minimum amount of trim
ming----------------------------------------------------------------------------------- p a ir..
Overalls, cotton, white-back denim (2.20 yds. per lb.), regular finish,
high back, bib style, 40 to 42 yards per dozen, based on 28-inch fabric
and 32 to 42-inch size scale, residual shrinkage not to exceed 10 percent,
triple-stitched seams, bar tacked at points of strain, pockets of drill
(2.85 yd. per lb.); nominal amount of trimming________________pair._
S hirt, work, cotton, chambray (3.90 yd. per lb.), Sanforized shrunk, vatdyed, 2 plain pockets with flaps, continuous nonrip sleeve facing, triplestitched seams, full sized and well made, 30 to 31 yards per dozen, based
on 36-inch fabric and neck band size scale 14 to 17____________ each__
Shirt, work, cotton, chambray (3.90 yd. per lb.), regular finish, vat-dyed,
2 plain pockets without flaps, continuous nonrip sleeve facing, triplestitched seams, fair workmanship, 29 to 30 yards per dozen, based on
36-inch fabric and neck band size scale 14 to 17_______________ each__
S hirt, work,_ cotton, covert (3.90 yd. per lb.), Sanforized shrunk, vatdyed, 2 plain pockets with flaps, continuous nonrip sleeve facing, triplestitched seams, full sized and well made, 30 to 31 yards per dozen, based
on 36-inch fabric and neck band size scale 14 to 17____________ each__
S hirt, business, collar attached, cotton, combed yarn, broadcloth (1X1,
128X68 or 136X60 construction), white, may or may not have fused
collar, full sized and well made, 31 to 32 yards per dozen, based on
36-inch fabric and neck band size scale 14 to 17_______________ each__
S hirt, business, collar attached, cotton, carded yarn, broadcloth (1X1,
100X60 construction), white, may or may not have fused collar, fair
workmanship, 29 to 30 yards per dozen, based on 36-inch fabric and
neck band size scale 14 to 17_______________________________ each__
Shirt, business, collar attached, cotton, printed, percale, (68X72 con
struction) colors fast to washing, may or may not have fused collar,
fair workmanship, 29 to 30 yards per dozen, based on 36-inch fabric and
neck band size scale 14 to 17________________________________ ea ch ..
P ajamas, cotton, combed yarn, broadcloth (1X1, 128X68 or 136X60
construction) plain colors fast to washing, with contrasting trim, coat
or middy style, full-sized (similar to U. S. Commercial Standard CS15-29)
and well made, 53 to 54 yards per dozen, basedjm 36-inch fabric and
size scale A to E ___________________ _________ _______________ p a ir..
P ajamas, cotton, carded yarn, broadcloth (1X 1, 100X60 construction)
plain colors fast to washing with contrasting trim, coat or middy style,
fair workmanship, 52 to 53 yards per dozen, based on 36-inch fabric
and size scale A to E ________________________________________pair__
P ajamas, cotton, printed, percale (64X60 construction) colors fast to
washing, coat or middy style, minimum workmanship, 50 to 51 yards
per dozen, based on 36-inch fabric and size scale A to E ________ pair..
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Federal Reserve Bank of St. Louis
1. 59
1. 13
. 94
. 86
. 69
. 86
1. 71
. 99
. 76
1. 95
1. 27
.98
220
M o n th l y L a b o r R e v ie w — J a n u a r y 1 9 3 9
S horts, cotton, printed, carded yarn, broadcloth (1X 1, 100X60 construc
tion) colors fast to washing, woven elastic yarn inserts at waist, full A m age
sized, well made with careful attention to detail and trim, 13}£ to 14 yards Price
per dozen, based on 36-inch fabric and 30 to 44-inch size scale-------- pair__ $0. 39
S hosts, cotton, printed, carded yarn, broadcloth (1X1, 80X60 construc
tion) colors fast to washing, woven elastic yarn inserts at waist, fair
workmanship, 13 to 13)6 yards per dozen, based on 36-inch fabric and
30 to 44-inch size scale_________________________________ _____pair__
. 25
Socks, cotton, mercerized, combed yarn, 220 to 240 needles, medium
quality, plain colors, reinforced heel and toe, full sized (similar to U. S.
Commercial Standard CS 46-33), 1)4 to 1 pounds per dozen___ pair__
S ocks, cotton, combed yarn, 180 to 200 needles, inexpensive quality, plain
colors, reinforced heel and toe, 1% to 2 pounds per dozen_______ p a ir..
. 32
. 18
Women's clothing
D ress,1 rayon, printed, crepe, medium quality, size 38, acetate warp and
viscose filling yarns (135X64 construction, 100 denier warp and 100
denier filling), full-sized, well made, well styled, with careful attention
to detail and trim, one piece, street length____________________ ea c h .. 11. 80
D ress,1 rayon, prints, inexpensive quality, size 38, all viscose yarn (92X68
construction, 100 denier pigmentized warp, 150 denier pigmentized
filling), fair workmanship and moderate amount of styling, inexpensive
grade trim, one piece, street length__________________________ each__ 7. 07
D ress,1 rayon, prints, very inexpensive quality, size 38, all viscose yarns
(72X60 construction, 150 denier pigmentized warp, 150 denier pig
mentized filling), minimum workmanship, very inexpensive grade trim,
one piece, street length______________________________________ each-. 3. 77
Slip, silk, pure dye, crepe, size 38, all silk fabric (55X84 construction), lace
trim at top and bottom, adjustable shoulder straps, seams guaranteed
against slipping or pulling, full sized and well made, 46 to 48 inches long
and 54 to 56 inches wide at bottom___________________________each__ 2. 10
S l ip , rayon, crepe, size 38, all viscose yarn (92X68 construction, 100 denier
pigmentized warp and 150 denier pigmentized filling), tailored style,
adjustable shoulder straps, seams double stitched or taped, full sized
and well made, 46 to 48 inches long, and 54 to 56 inches wide at bot
tom _______________________________________________________ each__ 1. 09
N ightgown, cotton, printed, batiste (80X80 construction), combed yarn,
size 16, seams machine stitched, remainder of garment hand-made, full
sized and well made, 50 to 52 inches long_____________________ each__
1. 07
H ose, silk, 3-thread, 45 gauge, all silk (yarns to have composite evenness
of 87 to 90 percent, 9 meter and seriplane tests), full coursed (not less
than 1,380 total courses counted from upper edge of picot to lower edge
of looping round of heel, based on standard 30-inch length), not more
than five flare narrowings, silk heel, sole and toe, plain knit silk welt
with run stop, full fashioned, ringless, crepe, high twist (quality and
manufacture similar to Standard “A” of National Association of Hosiery
Manufacturers)_____________________________________________ p a ir.. 1.02
H ose, silk, 4-thread, 42 gauge, all silk (yarns to have composite evenness
of 85 to 87 percent, 9 meter and seriplane tests), full coursed (not less than
1,280 total courses counted from upper edge of picot to lower edge of
looping round of heel, based on standard 30-inch length), not more than
4 flare narrowings, heel, sole and toe reinforced with mercerized cotton,
plain knit silk welt with run stop, full fashioned, ringless, high twist
(quality and manufacture similar to Standard “A” of National Associa
tion of Hosiery Manufacturers)_______________________________pair._ . 84
H ose, silk, 7-thread, 42 gauge, all silk (yarns to have composite evenness of
81 to 83 percent, 9 meter and seriplane tests) full coursed (not less than
1,180 total courses counted from upper edge of picot to lower edge of
looping round of heel, based on standard 30-inch length), not more than
4 flare narrowings, heel, sole, and toe reinforced with mercerized cotton,
*SeasonalSjitem; prices for March and June.
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Federal Reserve Bank of St. Louis
R e ta il P r ic e s
221
plain knit welt, with run stop, reinforced with mercerized cotton, full Average
fashioned (quality and manufacture similar to Standard “A” of Na price
tional Association of Hosiery Manufacturers)----------------------------pair_. $0. 92
Boy’s clothing
S hirt, cotton, carded yarn, broadcloth (1X 1, 100X60 construction),
white, size 12^-inch neck, full sized (similar to U. S. Commercial Standdard CS 14-31) and well made------------------------------------------------ each-.
S hirt, cotton, carded yarn, broadcloth (1X1, 80X60 construction),
white, size 12>^-inch neck, fair workmanship----------------------------each,_
S hirt, cotton, printed, percale (64X60 construction), size 12}£-inch neck,
minimum workmanship______________________________________ea ch .,
P ajamas, cotton, carded yarn, broadcloth (1X1, 100X60 construction), size
14 years, plain colors fast to washing with contrasting trim, coat or
middy style, full sized, well made-------------------------------------------- p a ir..
P ajamas, cotton, carded yarn, broadcloth (1X1, 80X60 construction),
size 14 years, plain colors with contrasting trim, coat or middy style,
fair workmanship___________________________________________ pair__
. 96
. 74
. 57
1. 33
. 95
Girls’ clothing
D ress, cotton, printed, percale (80X80 construction), medium quality,
size 8 years, colors fast to washing, long or short sleeves, 3- to 4-inch
hem, full-sized, well made with careful attention to detail and trim, one
piece_______________________________________________________each__
D ress, cotton, printed, percale (64X60 construction), inexpensive quality,
size 8 years, long or short sleeves, 2- to 3-inch hem, fair workmanship,
moderate amount of detail and trim, one piece------------------------ each__
1. 91
1. 02
Yard goods and textile furnishings
P ercale, cotton printed, 80X 80 construction per yard, made from good
quality cotton yarns, prints to have three or more colors fast to wash
ing, finished width 36 inches (gray width 39 inches, gray weight 4.00
yd. per lb )_________________________________________________ yard-.
. 23
T owel, cotton, terry, 3 pick, double loop construction, size 22X 44 inches,
bleached, all white or with one color (fast to washing) striped border,
weight 5 to 6 poundsper dozen------------------------------------------------each__
. 30
S heet, cotton, muslin, 64X 64 construction, size 81X 99 inches before
hemming, finish not to contain over 6 percent sizing and/or weighting
combined, bleached, hand torn, plain hemmed--------------------------each__
Sheet, cotton, muslin, 68X72 construction, size 81X99 inches before hem
ming, finish not to contain over 6 percent sizing and/or weighting com
bined, bleached, handtorn, plain hemmed--------------------------------each*-
115G52-— 39-
-15
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Federal Reserve Bank of St. Louis
1. 08
1. 43
Wholesale Prices
WHOLESALE PRICES IN NOVEMBER 1938 1
DURING November wholesale commodity prices on the average
declined 0.1 percent to the lowest level of the past 4 years. Lower
prices for metals and metal products, building materials, and chemi
cals and drugs largely accounted for the decline in the all-commodity
index of 813 price series. The November index was 77.5 percent of
the 1926 average. During the year the general price level has de
clined 4.2 percent and average prices are 7.0 percent lower than in
November 1937.
Average wholesale prices of fuel and lighting materials dropped 2.3
percent in November following smaller declines for the 2 preceding
months. The decrease was largely because of sharply lower prices
for Kansas-Oklahoma crude petroleum and motor gasoline. The
petroleum products subgroup registered a decline of 4.3 percent during
the month. Gas prices were 1.8 percent lower and bituminous coal
showed a 0.2 percent decline. Coke prices were steady, while anthra
cite advanced 1.3 percent.
Weakening prices for red cedar shingles, window frames, asphalt,
shellac, and linseed oil were largely responsible for the 0.7 percent
decline in the building materials index for November. Paint and
paint materials on the average showed a decrease of 0.2 percent and
average prices of lumber were 0.1 percent lower. The index numbers
for structural steel and cement remained at the October level and
plumbing and heating items and brick and tile showed slight advances.
The group index, 89.2, is at the level reached in July of this year and
is the lowest since December 1936. During the past 2 years building
material prices reached their high in May 1937 when the index was
97.2. There was a gradual decline to July 1938 when the index had
dropped to 89.2 percent of the 1926 average. The month’s index is
4.8 percent below November 1937.
The index for the chemicals and drugs group declined 0.6 percent,
primarily because of lower prices for drugs and pharmaceuticals and
chemicals together with weaker prices for mixed fertilizers. On the
other hand, fertilizer material prices averaged 0.3 percent higher.
The metals and metal products group index dropped 0.4 percent
1 More detailed information on wholesale prices is given in a separate pamphlet, entitled, “ Wholesale
Prices in November 1938,” copies of which will be furnished upon request.
222
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Federal Reserve Bank of St. Louis
W h o le s a le P r ic e s
223
during November. The decline was largely accounted for by recently
announced lower prices for farm machinery items and motor vehicles.
Average prices for nonferrous metals were 1.8 percent higher than
during the preceding month. Iron and steel prices remained un
changed from the October level. The index, 94.9, is the lowest reached
since February 1937. From the low of last year average prices fol
lowed an upward trend to September when the index was 97.1. Since
September 1937 price movements within the group have been some
what irregular, and the tendency has been downward. The Novem
ber 1938 index is 2.0 percent lower than it was a year ago.
In contrast to the downward movement for the above groups,
market prices of farm products rose 1.5 percent in November. With
the exception of livestock and poultry all subgroups showed a higher
average. Grains advanced 0.2 percent in price and other farm prod
ucts, including among other items cotton, eggs, hay, and fresh vege
tables, rose 1.5 percent. In addition to the already mentioned farm
product items averaging sharply higher in price were oats, sheep,
fresh fruits, hops, and wool. Lower average prices were reported for
barley, calves, hogs, and dried beans. The index for November
(1938), 67.8, although recording an advance over October, is 10.4 per
cent below a year ago. Market prices of farm products reached the
highest of the past 2 years in March 1937, when the index had ad
vanced to 94.1. The movement since that time has been quite ir
regular with the tendency mostly downward.
The index for the hides and leather products group showed an in
crease of 1.3 percent during the month. Hides and skins advanced
4.1 percent; leather, 2.7 percent; and shoes, 0.1 percent. Other leather
products, including such items as harness, luggage, and gloves, de
clined 0.3 percent.
The foods group advanced 0.8 percent during the month, but still
remains below the high of the year reached in January. The increase
of 9.6 percent in fruit and vegetable prices and 1.3 percent in dairy
products more than offset declines of 1.5 percent for cereal products
and 1.7 percent for meats. Among important food items which
showed price increases were butter, dried apricots, bananas, lamb,
molasses, and canned beans. Lower prices were reported for corn
meal, baked beans, cured pork, veal, copra, lard, rye flour, oatmeal,
oleo oil, and vinegar. The November index, 74.1, is 10.8 percent
below the corresponding month of 1937. The past 2-year high was
reached in September 1937, when the index had risen to 88.0 percent
of the 1926 average. The low point of the year was reached in May
when the index was 72.1. From that time average food prices have
tended upward to the present level.
Average wholesale prices of cattle feed rose 6.0 percent during the
month. Automobile tires and tubes showed an advance of 2.4 per
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Federal Reserve Bank of St. Louis
224
M o n th l y L a b o r R e v ie w — J a n u a r y 1 9 3 9
cent and soap products increased 0.4 percent. Crude rubber prices
dropped 2.8 percent and boxboard prices averaged 0.9 percent lower.
Prices of paper and pulp also averaged slightly lower.
Fractionally higher prices for housefurnishing items caused the
housefurnishing goods group index to advance 0.1 percent. Because
of lower announced prices for bedroom chairs the average for furniture
was lower.
The large group of textile products showed no change in average
prices. Fluctuations within the group were within a narrow range.
Clothing and hosiery and underwear prices did not change. Cotton
and woolen textiles increased while silk and rayon and other textiles
including raw jute averaged lower.
Index numbers for the groups and subgroups of commodities for
October and November 1938 and November 1937 are shown in table 1.
T able 1.— Index Numbers of Wholesale Prices by Groups and Subgroups of Commodities
[1926=100]
Group and subgroup
N o
N o
vem Octo
ber vem
ber
ber
1938
1938
1937
77.5
77.6
83.3
Farm products____
___ _
Grains.--.................
Livestock and poultry. . .
Other farm products ___
67.8
50.9
75.2
67.4
66. 8
50.8
76.2
65.0
75.7
69.2
8 6 .2
Foods
________
Dairy products..- ______
Cereal products__________
Fruits and vegetables____
Meats. . . . . . ________
Other foods______________
74.1
72.5
74.0
63.0
81.9
71.0
73.5
71.6
75.1
57.5
83.3
70.4
83.1
89.2
81.5
61.5
98.3
73.6
Hides and leather products. _
94.6 93.4
Shoes _
___
100.4 100.3
Hides and skins. ______
85.5 82.1
Leather
____ _ ___ __ 86.9 84.6
Other leather products . . . 96.6 96.9
101.4
106.9
94.6
92.7
103.1
Textile products___ ____. .
Clothing_______ . _____
Cotton goods. __________
Hosiery and underwear___
Silk and rayon___________
Woolen and worsted goods.
Other textile products____
Fuel and lighting m aterials... .
Anthracite___ . . . . ____
Bituminous coal_________
C o k e ..___________ ____
Electricity_________ ____
Gas _________________ .
Petroleum products______
6 6 .2
6 6 .2
81.6
65. 1
59.9
30.3
76.4
64.5
81.6
64.6
59.9
30.9
76.3
65.3
71.2
87.3
70.5
64.2
30.1
85.1
69.0
75.4
79.1
98.7
1 0 1 .2 104.2
0)
0)
87. 1
(')
51.5 53.8
78.2
79.8
99.2
105.4
83.1
83.1
60.6
73.7
80.1
98.5
Metals and metal products.. ._ 94.9
Agricultural im plem ents... 93.7
Farm machinery_____ 95.0
1
2
Data not available.
Preliminary revision.
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Federal Reserve Bank of St. Louis
70.7
95.3
95.4
96.8
96.8
95.9
97.6
Group and subgroup
Metals—Continued.
Iron and steel.. _______
Motor vehicles 2_ . . ____
Nonferrous metals_. _____
Plumbing and heating. . . .
Building m aterials________
Brick and tile_____ ____ _
Cement____________ . . .
Lumber. ________ _____
Paint and paint m aterials..
Plumbing and heating___
Structural steel__________
Other building m aterials...
N o
N o
vem Octo
ber vem
ber 1938
ber
1937
1938
96.9
93.6
77.6
78.7
96.9
95.0
76.2
78.5
99.3
95.3
78.5
79.6
89.2 89.8
91.5 91.1
95.5 95.5
90.2 90.3
80.9 81.1
78.7 78.5
107.3 107.3
89.7 91.7
93.7
92.9
95.5
94.1
81.5
79.6
114.9
98.7
Chemicals and drugs _.
Chemicals____ _ ______
Drugs and pharmaceuticals
Fertilizer materials. ____
Mixed fertilizers_________
76.6
80.2
73.6
67.7
73.2
77.1
80.5
74.9
67.5
73.4
80.2
84.2
76.8
71.9
74.5
Housefurnishing goods_______
Furnishings _________. . .
Furniture_______________
85.8
89.7
81.9
85.7
89.3
82.1
90.4
94.8
Miscellaneous______________
Automobile tires and tubes.
Cattle feed____ ______ . . .
Paper and p u lp ... ______
Rubber, crude___________
Other miscellaneous . . . .
73.0
58.8
70.5
81.5
34.3
81.2
72.6
57.4
66.5
81.7
35.3
81.2
75.4
57.4
83.3
90.4
30.6
83.5
Raw materials_________ _ . .
71.5
Semimanufactured articles ___ 76.2
80.5
All commodities other than
farm products______________ 79.5
All commodities other than
farm products and foods____ 80.6
70.9
75.9
81.1
77.2
79.8
86.7
79.9
84.8
81.1
84.3
8 6 .0
225
W h o le sa le P r ic e s
,
Index Numbers by Commodity Groups 1926 to November 1938
Index numbers of wholesale prices by commodity groups for selected
years from 1926 to 1937, inclusive, and by months from November
1937 to November 1938, inclusive, are shown in table 2.
T able 2.— I n d e x
N u m b e r s o f W h o le sa le P r ic e s , b y G r o u p s o f C o m m o d itie s
[1926=100]
Year and month
Hides Tex Fuel Metals Build Chem House- MisFarm
furand
and
celing
tile
and
icals nishleather
prod Foods
lanelight metal
mate and
ing
prod
ucts
prod prod
ous
ing
drugs
rials
ucts
goods
ucts
ucts
B y years:
1926____ ________ 1 0 0 . 0
1929____________ 104.9
1932____________
48.2
1933______ _____ - 51.4
1936............ ............. 80.9
1937 ___________
86.4
B y months:
1937:
November___ 75.7
December___ 72.8
1938:
January_____ 71.6
February____ 69.8
March______
70.3
A p r il.............. 68.4
M a y ................ 67.5
June________
68.7
July________
69.4
August___ _
67.3
September___ 6 8 . 1
October_____ 6 6 . 8
November___ 67.8
All
com
modi
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
99.9
61.0
60.5
82.1
85.5
109.1
72.9
80.9
95.4
104.6
90.4
54.9
64.8
71.5
76.3
83.0
70.3
66.3
76.2
77.6
100.5
80.2
79.8
87.0
95.7
95.4
71.4
77.0
86.7
95.2
94.2
73.5
72.6
80.4
83.9
94.3
75.1
75.8
81.7
89.7
82.6
64.4
62.5
70.5
77.8
95.3
64.8
65.9
80.8
86.3
83.1
79.8
101.4
97.7
71.2
70.1
78.2
78.4
96.8
96.3
93.7
92.5
80.2
79.5
90.4
89.7
75.4
75.0
83.3
81.7
76.3
73.5
73.5
72.3
72.1
73.1
74.3
73.0
74.5
73.5
74.1
96.7
94.7
93.6
92.1
91.3
90.1
91.5
91.9
92.0
93.4
94.6
69.7
78.3
78.5
77.7
76.8
76.2
76.4
76.8
76.8
76.6
75.4
73.7
96.6
96.0
96.0
96.3
96.7
96.1
95.2
95.4
95.5
95.3
94.9
91.8
91.1
91.5
91.2
90.4
89.7
89.2
89.4
89.5
89.8
89.2
79.6
79. 1
78.7
77.5
76.8
76.3
77.7
77.7
77.3
77.1
76.6
88.3
87.7
87.3
87.2
87.1
86.4
86.4
75.2
74.8
74.4
73.4
73.1
72.9
72.7
72.4
72.4
72.6
73.0
80.9
79.8
79.7
78.7
78.1
78.3
78.8
78.1
78.3
77.6
77.5
6 8 .6
6 8 .2
67.2
6 6 .1
65.5
6 6 .1
65.9
65.8
6 6 .2
6 6 .2
8 8 .0
8 6 .2
85.7
85.8
The price trend for specified years and months since 1926 is shown
in table 3 for the following groups of commodities: Raw materials,
semimanufactured articles, finished products, commodities other than
farm products, and commodities other than farm products and foods.
The list of commodities included under the classifications “Raw mate
rials,” “Semimanufactured articles,” and “Finished products” was
given in the December 1937 issue of the Wholesale Price pamphlet.
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Federal Reserve Bank of St. Louis
226
T able
M o n th l y L a b o r R e v i e w — J a n u a r y 1 9 3 9
3 .— I n d e x N u m b e r s o f W h o lesa le P r ic e s , b y S p e c ia l G r o u p s o f C o m m o d itie s
[1926=100]
Semimanufactured
arti
cles
Fin
ished
prod
ucts
1 0 0 .0
1 0 0 .0
1 0 0 .0
1 0 0 .0
1 0 0 .0
97.5
55.1
56.5
79.9
84.8
93.9
59.3
65.4
75.9
85.3
94.5
70.3
70.5
82.0
87.2
93.3
68.3
69.0
80.7
8 6 .2
91.6
70.2
71.2
79.6
85.3
77.2
75.4
79.8
77.7
86.7
85.3
84.8
83.5
84.3
83.6
74.9
73.6
76.9
76.1
84.3
83.3
82.8
81.9
83.5
83.0
Raw
Year and month mate
rials
B y years:
1926_________
1929________
1932 ______
1933 ______
1936 ______
1937 ........
B y months:
1937:
November___
December___
1938:
January_____
February____
All
com
mod
ities
other
than
farm
prod
ucts
and
foods
All
com
mod
ities
other
than
farm
prod
ucts
All
com
mod
ities
other
than
farm
prod
ucts
and
foods
Raw
mate
rials
Semimanufactured
artiles
Fin
ished
prod
ucts
All
com
mod
ities
other
than
farm
prod
ucts
B y months—Con.
1938—Contd.
March______
April_____
M ay________
June................
73.2
71.3
70.7
71.4
75.6
75.3
75.4
74.1
83.4
82.7
82.1
82.2
81.6
80.8
80.3
80.3
82.6
82.0
81.6
81.3
July________
August______
September__
October_____
72.3
71.4
72.0
70.9
74.3
74.4
74.7
75.9
82.5
81.8
81.8
81.1
80.8
80.3
80.4
79.9
81.4
81.4
81.3
81.1
November__
71.5
76.2
80.5
79.5
80.6
Year and month
Weekly Fluctuations
Weekly fluctuations in the major commodity group classifications
during October and November are shown by the index numbers in
table 4.
T able 4 .—
W e e k ly I n d e x N u m b e r s o f W h o le sa le P r ic e s , b y C o m m o d ity G r o u p s , O ctober
a n d N ovem ber 1938
[1926 = 100]
Commodity group
All commodities__________ ________________
Nov. Nov. Nov. Nov.
Oct.
Oct.
Oct.
5,
1938
Oct.
Oct.
29,
1938
22,
1938
15,
1938
8,
1938
1,
1938
26,
1938
19,
1938
12,
1938
77.3
77.3
77.4
77.3
77.6
77.3
77.7
77.8
78.0
Farm products.___ _______________________ 68.3
Foods_____ ___________________ ____ ______ 74.0
Hides and leather products_________________ 95.0
Textile products______ _____________ ______ 65.7
Fuel and lighting materials______ ________ 74.4
67.8
73.9
95.1
65.7
74.9
67.6
73.9
95.1
65.7
74.8
67.2
72.9
95.3
65.9
75.2
68.2
73.8
95.1
65.9
75.2
66.9
73.5
94.3
65.7
75.5
67.4
73.6
93.7
65.7
76.9
67.4
73.7
92.8
65.6
76.9
68.1
74.1
92.5
65.4
77.2
Metals and metal products......................... .........
Building m aterials_________ ______________
Chemicals and drugs____________________ .
Housefurnishing goods_____ _______________
Miscellaneous................................. .........................
95.0
89.4
95.0
89.3
95.3
89.0
95.3
90.0
95.9
95.4
95.4
95.7
95.7
76.3
87.7
72.4
76.4
87.1
72.5
76.2
87.1
72.5
76.3
87.1
72.4
89.8
76.6
87.1
72.4
89.8
76.7
87.1
72.4
89.9
76.7
87.1
72.4
89.7
76.7
87.1
72.4
89.5
76.9
87.2
72.3
Raw materials....................... .................................. 71.6
Semimanufactured articles...... .......................... . 76.1
Finished products...............................................
80.6
71.4
76.3
80.7
71.3
76.2
80.8
70.7
76.2
81.0
71.3
76.2
81.2
70.4
75.9
81.2
71.5
75.8
81.4
71.5
75.0
81.6
71.7
75.1
81.9
All commodities other than farm products___ 79.3
All commodities other than farm products and
foods___ ____ ____ ________________ ______ 80.8
79.4
79.5
79.5
79.7
79.6
80.0
80.1
80.3
80.9
80.9
81.2
81.3
81.2
81.6
81.5
81.6
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Trend o f Employment and Pay Rolls
SUMMARY FOR NOVEMBER 1938
Total Nonagricultural Employment
EMPLOYMENT in nonagricultural industries continued to rise in
November, contrary to the usual seasonal trend. Although the
November gain amounted to only 30,000 workers, it was noteworthy
because there have always been declines in November in previous
years back to 1929. These declines have ranged from 96,000 to 767,000,
the average for the 9 years 1929 to 1937 having been 390,000. Since
June nearly 1,000,000 workers have been returned to nonagricultural
jobs exclusive of projects of the Works Progress Administration and
other Federal emergency agencies and exclusive also of certain types
of temporary workers who are not considered part of the normal labor
supply, but are drawn into some industries during peaks of activity.
Approximately 140,000 workers found employment in November in
retail and wholesale trade, factories, bituminous-coal and metal mines,
and brokerage offices.
These gains were partially offset by declines, largely seasonal, on
the railroads, in water transportation, in private building construction,
in service and other nonmanufacturing industries, and in casual work.
In November employment increased on all work programs financed
from Federal funds with the exception of projects financed from regular
Federal appropriations, projects operated by the Works Progress
Administration, and projects financed by the Reconstruction Finance
Corporation. In the regular services of the Federal Government an
increase occurred in the military service and decreases in the executive,
legislative, and judicial services.
Industrial and Business Employment
Employment gains were reported by 57 of the 87 manufacturing
industries surveyed monthly by the Bureau of Labor Statistics and
by 6 of the 16 nonmanufacturing industries covered. Pay-roll in
creases were shown by 44 of the manufacturing and 7 of the non
manufacturing industries.
For all manufacturing industries combined, the increase in the
number of wage earners between mid-October and mid-November
was 1.1 percent or 80,000. The rise was particularly significant as an
227
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Federal Reserve Bank of St. Louis
228
M o n th l y L a b o r R e v ie w —J a n u a r y 1 9 3 9
indication of recovery in industrial activity, as the typical factory
employment decline in November is about 1.5 percent. Factory
pay rolls rose 0.4 percent in the same period indicating an increase of
$550,000 in weekly wage disbursements. The typical change in
factory pay rolls is a decrease of 3.2 percent. The pay-roll gain is
significant, not only because it is contraseasonal, but also because
the national observance of Armistice Day for the first time would be
expected to cause a relatively greater decline than in previous years.
The uninterrupted succession of increases since June has raised the
Bureau’s employment index for November to 90.5 percent of the
1923-25 average, the highest level since December 1937. The Novem
ber factory pay-roll index (84.1) likewise stands above the level of any
month since December 1937. Employment in manufacturing indus
tries was still 10.5 percent lower in November than in the same month
a year ago, while pay rolls were 9.5 percent lower.
The durable-goods group of manufacturing industries showed an
employment gain of 4.1 percent between* October and November,
while the nondurable-goods group showed a decline of 1.1 percent,
largely because of seasonal recessions in canning, in the clothing and
shoe industries, and in confectionery. The more important manufac
turing industries showing substantial employment gains were automo
biles, steel, cotton goods, woolen and worsted goods, electrical ma
chinery, foundries and machine shops, meat packing, wirework, and
radios. Among the industries reporting large declines in employ
ment, for the most part seasonal, were canning, women’s clothing,
shoes, men’s clothing, sawmills, millinery, stoves, and confectionery.
Among the nonmanufacturing industries, employment in retail
stores which showed the largest increase (1.0 percent) accounted for
35,200 additional employees. Department stores, variety and gen
eral merchandise stores and mail-order houses taken as a group,
showed a seasonal employment gain and jewelry and furniture stores
and automobile and accessory firms also employed more people.
Retail food stores showed a small gain in employment. Among the
lines of retail trade in which employment declined were apparel; wood,
coal, and ice; and building materials. Wholesale trade establish
ments expanded employment in November, the gain of 0.8 percent
indicating 11,200 additional workers. A sharp seasonal increase in
employment was reported by wholesalers of farm products, and
smaller gains were reported by chemical and drug films and dealers in
paper and paper products, food products, hardware, furniture and
house furnishings, leather and leather goods, and iron and steel scrap.
Wholesalers dealing in automotive products and plumbing and heating
supplies reported sizable employment losses, and small decreases were
reported by wholesale grocery, petroleum products, and dry goods and
apparel firms.
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T r e n d o f E m p lo y m e n t a n d P a y R o lls
229
Anthracite mines had 2,000 fewer men employed in mid-November
than in the preceding month, while bituminous-coal mines increased
their forces by 1.6 percent, or 6,400 workers. Metal mines continued
to expand their forces, increased activity resulting in a gain of 6.0
percent or 3,800 workers. Employment in the public utilities showed
slight decreases, dyeing and cleaning firms reported a seasonal reces
sion of 3.9 percent or 2,500 workers, and year-round hotels and
laundries reported smaller seasonal declines.
Employment in private building construction decreased less than
seasonally, according to reports received from approximately 14,500
contractors employing over 124,000 workers. All parts of the country
reported declines with the exception of a small increase in the East
South Central States. These figures do not cover projects financed
by the Public Works Administration, the Reconstruction Finance
Corporation, or regular appropriations of the Federal, State, and local
governments.
A preliminary report of the Interstate Commerce Commission
indicated a decrease between October and November of 1.5 percent,
or 15,598, in the number of employees on class I railroads. The
total number employed in November was 960,776. Correspondingpay-roll figures were not available for November when this report
was prepared. For October they amounted to $155,270,047 as against
$148,511,507 for September, a gain of 4.6 percent.
H o u r s a n d e a r n in g s —The average hours worked per week by wage
earners in manufacturing industries was 36.5 in November, a decrease
of 2.5 percent since October. The corresponding average hourly
earnings were 64.5 cents, an increase of 1.4 percent as compared with
the preceding month. Average weekly earnings fell 0.7 percent to
$23.82.
Of the 14 nonmanufacturing industries for which man-hour data are
available, 5 showed gains in average hours worked per week and 8
showed increases in average hourly earnings. Average weekly earn
ings were higher for 7 of the 16 nonmanufacturing industries surveyed.
Prior to January 1938 the wording of the definition on the schedules
for public utilities, wholesale and retail trade, hotels, and brokerage
and insurance firms called for the inclusion of higher-salaried employees
such as corporation officers, executives, and others whose duties are
mainly supervisory. These employees have, for the most part, always
been excluded from employment reports for other industries, and be
ginning with January it was requested that they be omitted also for
the industries named above. For this reason the average hours
worked per week, average hourly earnings, and average weekly earn
ings for these industries are not comparable with the figures appearing
in issues of the Review dated earlier than April 1938, except for the
January figures appearing in the March issue.
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Federal Reserve Bank of St. Louis
230
M o n th l y L a b o r R e v ie w — J a n u a r y 1 9 3 9
Employment and pay-roll indexes and average weekly earnings in
November 1938 for all manufacturing industries combined, for
selected nonmanufacturing industries, and for class I railroads, with
percentage changes over the month and year intervals except in the
few industries for which data are not available, are presented in table 1.
T able 1.— E m p lo y m e n t, P a y R o lls , a n d E a r n in g s in A l l M a n u f a c tu r in g I n d u s tr ie s ,
C o m b in e d a n d in N o n m a n u fa c tu r in g I n d u s tr ie s , N o v e m b e r 1 9 3 8 (P r e lim in a r y F ig u r e s )
Employment
Percentage
change
from—
Industry
Index,
Novem
ber 1938
All manufacturing industries
com bined»___ ____________
Class I steam railroads 7 3 _____
Coal mining:
Anthracite_________ _____
Bituminous 5. ____________
Metalliferous mining_________
Quarrying and nonmetallic
mining___ ___________ ____
Crude-petroleum producing___
Public utilities:
Telephone and telegraph.......
Electric light and power and
manufactured gas.................
Electric-railroad and motorbus operation and maintenance___________________
Trade:
Wholesale____________ ____
Retail____________________
General merchandising___
Other than general merchandising________ ____
Hotels (year-round) 6 8________
Laundries ________________
D yeing and cleaning 6________
Brokerage.......................... ...........
Insurance___ . _____ _______
Building construction.................
Octo
ber
1938
N o
vem
ber
1937
90.5
53.8
+ 1 -1
- 1 .5
-1 0 .5
= 9 .4
51.0
+
+
-1 6 .3
-1 2 .7
-1 8 .5
(1988-26
=100)
(1929=
100)
8 8 .6
61.4
-
2 .6
1 .6
6 .0
+•
2
2 .0
Index,
Novem
ber 1938
Octo
ber
1938
Percentage
change
Aver
from—
age in
N o
vem
N o
N o
ber
Octo vem
vem
ber
1938
ber
ber
1938
1937
1937
-1 0 .9
- 1 1 .8
84.1
(4)
(1929=
100)
+ 0 .4
0 )
-9 .5
(4)
36.2 -1 6 .5 -2 6 .1
81.4 + 4.0 -1 0 .7
51.6 + 4 .8 -2 7 .9
37.2
62.8
- 5 .1
- 1 .5
-1 0 .9
-1 0 .7
$23.82
(4)
-0 .7
(4)
+ 1 .1
«
23.14 -1 4 .3
24. 56 + 2 .3
25.96 - 1 . 1
-1 1 .7
+ 2 .3
-1 1 .5
21.15
33. 50
-5 .3
+ .6
-(•)
+ 1 .3
74.4
-.5
- 5 .7
93.0
- 2 .5
+ 1 .7 730. 98
2 .0
+ 7.9
92.0
- .6
- 5 .4
98.6
- 1 .3
- 5 .1
7 33.
71
-.7
+ .4
69.5
- .6
- 5 .0
6 8 .8
- .3
- 4 .3
7 32.
36
+ .3
+ .8
-4 .0
- 5 .1
+ .3
- 3 .8 7 29. 22
- 4 .9 7 2 1 . 26
- 4 . 2 718. 0 0
-.4
+ .2
-4.0
75.3
71.6
93.1
- .2
+ .1
- .2
- 5 .3
- 4 .3
- 4 .2
- .9
-1 1 .4
+ 2 .3
-2 5 .0
81.1
79.3
73.8
(<)
M
«
89.8
87.0
105.4
+ 1 .0
+ 4 .7
82.2
92.4
93.7
—(6)
-.5
1 0 2 .6
0
0
0
Percentage
change
from—
(1928-26
=100)
44.4
6 8 .1
Average weekly
earnings
Pay roll
)
)
)
- .8
- 3 .9
+ .8
- .2
-4 .2
67.2
+ .8
+ 3 .7
4*. 1 - 5 .0 7 23.97
+ .4
- 3 .8 714. 96
-.3
- 2 . 2 17.30
- 5 .4
+ .2
19.63
+ 1 . 6 -1 5 .6 7 36. 36
+ 1.3 - 2 .4 7 36.02
- 8 .4 -2 7 .1 28. 95
-
—1 . 0
+ .9
+ .5
-1 .5
+ 1 .6
- 4 .4
+ .3
+ .5
+ 2 .0
+ 1 .1
- 4 .8
- 4 .6
- 3 .3
i
Revised indexes—Adjusted to 1935 Census of Manufactures. Indexes for earlier months and years
given in table 3 of the November 1938 issue of the M onthly Labor Review.
* Does not include railroad repair shops.
1 Preliminary; Source—Interstate Commerce Commission.
4 N ot available.
* Indexes adjusted to 1935 Census. Comparable series back to January 1929 presented in January 1938
issue of the pamphlet, Employment and Pay Rolls.
6 Less than Ho of 1 percent.
7 Average weekly earnings not strictly comparable with figures published in issues of the M onthly Labor
Review dated earlier than April 1938 (except for the January figures appearing in the March issue), as they
now exclude corporation officers, executives, and other employees whose duties are mainly supervisory.
8 Cash payments only; the additional value of board, room, and tips cannot be computed.
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T r e n d o f E m p lo y m e n t a n d P a y R o lls
231
Public Employment
The upward movement of employment and pay rolls on projects
of the Public Works Administration continued. The gain of 25,000
workers and the increase in pay rolls of $2,771,000 was attributed to
the new projects financed from funds provided by the Public Works
Administration Appropriation Act of 1938. For the month ending
November 15, 173,000 men were working and pay rolls amounted to
$14,861,000. Of the total number at work in November, 15,000
were working on Federal and non-Federal projects financed from
National Industrial Recovery Act funds; 57,000 on non-Federal proj
ects financed from funds provided by the Emergency Relief Appro
priation Acts of 1935, 1936, and 1937; and 101,000 on Federal and
non-Federal projects financed with funds provided by the Public
Works Administration Appropriation Act of 1938.
During the month ending November 15, 1,200 men were working
on new construction and demolition projects of the U. S. Housing
Authority; pay rolls amounted to $150,000. These figures pertain
only to new projects under the U. S. Housing Authority and not to
those formerly under the Public Works Administration.
On construction projects financed from regular Federal appropria
tions during the month ending November 15, a decrease of 20,000
employees was reported. Seasonal reductions in the number working
on roads under the jurisdiction of the Bureau of Public Roads and the
transfer of some workers on reclamation projects to the pay rolls of
the Public Works Administration accounted for the greater part of
this decline. In addition decreases were also reported for the following
types of projects: Building construction, forestry, heavy engineering,
locks and dams, naval vessels, and miscellaneous projects. The pay
rolls for the 240,000 workers on construction projects financed from
regular Federal appropriations in November were $23,015,000.
During the month ending November 15, the maximum number of
workers employed and the man-hours worked on projects financed by
the Reconstruction Finance Corporation decreased; pay-roll disburse
ments, on the other hand, increased. The 3,000 men working in
November were paid $390,000.
On projects operated by the Works Progress Administration, a small
reduction occurred in working forces during November. There were
3,213,000 persons at work, a decrease of 32,000 from October, but an
increase of 1,646,000 from November 1937. Pay rolls amounting to
$172,373,000 were $2,026,000 greater than in October due to a marked
increase in the number of man-hours worked during the pay period.
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232
M o n th l y L a b o r R e v ie w — J a n u a r y 1 9 3 9
On Federal projects under The Works Program, employment for the
month ending November 15 showed a gain of 2,000, primarily on
projects on which work was starting, while pay rolls dropped $130,000,
because of the transfer of some workers with high wage rates on
reclamation projects to the pay rolls of the Public Works Administra
tion. There were 225,000 persons employed on work projects of the
National Youth Administration. Data on employment and pay rolls
for Student Aid in November will not be available until next month.
In the regular services of the Federal Government an increase in the
number working was reported for the military service; decreases
occurred in the executive, legislative, and judicial services. Of the
865,000 employees in the executive service in November, 119,000 were
working in the District of Columbia and 746,000 outside the District.
Force-account employees (employees who are on the Federal pay roll
and are engaged on construction projects) were 11 percent of the
total number of employees in the executive service. Increases in
employment occurred in the Navy Department and in the adminis
trative offices of the Public Works Administration and of the Works
Progress Administration. Among the departments reporting de
creases were War, Agriculture, Interior, and Commerce.
The total number in camps of the Civilian Conservation Corps was
335,000, a gain of 11,000 from October. Of the total number in
camps during November 298,000 were enrollees, 5,000 reserve officers,
300 nurses, 1,600 educational advisers, and 30,000 supervisory and
technical employees. Monthly pay-roll disbursements for all groups
of workers totaled $14,718,000.
On State-financed road projects the number of men engaged in
maintenance work increased sufficiently to offset the decrease in the
workers on new construction. For the month ending November
15, 232,000 were at work, or 11,000 more than during the preceding
period. Of the total number working, 29,000 were engaged on new
road construction and 203,000 on maintenance. Pay rolls for both
types of work were $14,960,000.
A summary of Federal employment and pay-roll data for October
and November is given in table 2.
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Federal Reserve Bank of St. Louis
233
T r e n d o f E m p lo y m e n t a n d P a y R o lls
T able 2.— S u m m a r y
o f F e d e r a l E m p lo y m e n t a n d P a y R o lls , N o v e m b e r 1 9 3 8
(.P r e lim in a r y F ig u r e s )
Employment
Class
Novem
ber
October
Federal services:
E xecutive 2___________
______ 865,058 3 873, 548
2,264
2,265
Judicial___________ ____ ________
5,244
5,163
Legislative_____________________
M ilitary____________________ . 339,938
337,408
Construction projects:
Financed by P. W. A . 8_________
173, 310
147,973
IT. S. H . A. Low-Cost H o u sin g ...
727
1,199
Financed by R. F. C A .. ...........
3,243
3, 305
Financed by regular Federal ap259,402
propriations.................................... 239,511
Federal projects under The Works
Program_____________________ ___
123,119
120, 754
Projects operated by W. P. A _______ 3,213,115 3,245,271
National Youth Administration:
Work projects................ ...................
225,088
220,066
316,536
(7)
324,747
335,479
Civilian Conservation Corps________
1
Pay rolls
Per
cent
age
change
November
- 1 .0
- ( 4)
-1 .5
+ .7
$131, 267,145
544,630
1, 205,224
26, 795,878
+17.1
+64.9
-1 .9
14,861,489
149,530
390,238
12,090,092
102, 658
388,027
-7 .7
23,014, 693
24,649, 559
October
3 $131,
591,185
548,093
1, 217, 374
26,791,118
2 .0
1 .0
5,925,239
172,373,413
055, 209
170,347,326
+ 2 .3
4,110, 810
(7)
14,718,482
4,012,209
1,951,914
14,602,688
+
-
+ 3 .3
6,
Per
cent
age
change
-
0 .2
- .6
- 1 .0
+ (<)
+ 2 2 .9
+45. 7
+ .6
-
6 .6
+
2 .1
1 .2
+ 2 .5
+ .8
1 Includes data on projects financed wholly or partially from Federal funds.
2 Includes force-account and supervisory and technical employees shown under other classifications to the
extent of 124,314 employees and pay-roll disbursements of $14,712,421 for November and 125,667 employees
and pay-roll disbursements of $15,182,697 for October.
3 Revised.
4 Less than Ho of 1 percent.
5 Data covering P. W. A. projects financed from Emergency Relief Appropriation Acts of 1935,1936, and
1937 funds and Public Works Administration Appropriation Act of 1938 funds are included. These data are
not shown under The Works Program. Includes 57,000 wage earners and $5,191,123 pay roll for November;
67,733 wage earners and $5,866,208 for October, covering Public Works Administration projects financed
from Emergency Relief Appropriation Acts of 1935, 1936, and 1937 funds. Includes 101,590 wage earners
and $8,085,341 pay roll for November; 62,550 wage earners and $4,471,342 pay roll for October covering
Public Works Administration projects financed from funds provided by the Public Works Administration
Appropriation Act of 1938.
6 Includes 347 employees and pay-roll disbursements of $35,177 for November; 283 employees and pay-roll
disbursements of $30,771 for October on projects financed b y the R FC Mortgage Co.
7 November data not available.
>######*
DETAILED TABLES FOR OCTOBER 1938
Industrial and Business Employment
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 principal contents for the
month of October, insofar as industrial and business employment is
concerned, are reproduced in this section of the Monthly Labor
Review.
Monthly reports on employment and pay rolls are available for
the following groups: 87 manufacturing industries; 16 nonmanu
facturing industries, including private building construction; and
class I steam railroads. The reports for the first two of these
groups—manufacturing and nonmanufacturing—are based on sample
surveys by the Bureau of Labor Statistics, and in virtually all indus
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Federal Reserve Bank of St. Louis
M o n th l y L a b o r R e v ie w — J a n u a r y 1 9 3 9
234
tries the samples are large enough to be entirely representative. The
figures on class I steam railroads are compiled by the Interstate Com
merce Commission and are presented in the foregoing summary.
EMPLOYMENT, PAY ROLLS, HOURS, AND EARNINGS
The indexes for the manufacturing industries have been adjusted
to the 1935 Census of Manufactures and are not comparable to those
published in the July 1938 and earlier issues of this pamphlet. Elec
tric and steam railroad repair shops have been excluded from the new
series in keeping with the reclassification for the 1937 Census of
Manufactures.
The average hours worked per week, average hourly earnings, and
average weekly earnings for all manufacturing industries combined
now relate to 87 industries instead of 89, because of the exclusion of
electric and steam railroad repair shops. This exclusion also affects
the averages for the durable-goods group because these industries
were classified in that group. The average hours and hourly earnings
for the 87 manufacturing industries combined, and for the manu
facturing groups are weighted on the basis of estimated employment
for the separate industries. As these estimates have been affected
by the revision of the indexes, it follows that the weighted averages
for September and October differ from the averages that would result
if the former estimates of employment were used as weights. Revised
averages for earlier months will be computed and made available in
the near future.
The indexes and averages for the iron and steel group and the
nonferrous metal products group have been affected by the transfer of
the stamped and enameled ware industry from the latter group to the
former. The indexes, hours, and hourly earnings for the knit-goods
industry are now weighted on the basis of four subdivisions (hosiery,
knitted outerwear, knitted underwear, and knitted cloth) for which
separate figures are now given. Tractor manufacturing establish
ments have been transferred from the engine, turbine, water wheel,
and windmill industry to the agricultural implements industry, thereby
affecting the figures for both industries.
The revised series of employment and pay-roll indexes, as well as
average hours worked per week, average hourly earnings, and average
weekly earnings for August, September, and October 1938, where
available, are presented in table 1. The August and September
averages where given, may differ in some instances from those
previously published not only because of the foregoing, but also
because of revisions necessitated by the inclusion of late reports and
other causes.
The weekly average earnings shown in table 1 are computed
by dividing the total weekly pay rolls in the reporting establishments
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Federal Reserve Bank of St. Louis
T r e n d o f E m p lo y m e n t a n d P a y R o lls
235
by the total number of full- and part-time employees reported. As all
reporting establishments do not supply man-hour data, average hours
worked per week and average hourly earnings are necessarily based on
data supplied by a smaller number of reporting firms. The size and
composition of the reporting sample varies slightly from month to
month and therefore the average hours per week, average hourly
earnings, and average weekly earnings shown in table 1 are not
strictly comparable from 1 month to another, even after revisions.
The sample, however, is believed to be sufficiently adequate in virtu
ally all instances to indicate the general movements of earnings and
hours over the period shown. The changes from the precedingmonth, expressed as percentages, are based on identical lists of firms
for the 2 months, but the changes from October 1937 are computed
from chain indexes based on the month-to-month percentage changes.
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Federal Reserve Bank of St. Louis
to
w
C\
T able 1.— E m p lo y m e n t, P a y R o lls , H o u r s , a n d E a r n in g s in M a n u f a c tu r in g a n d N o n m a n u fa c tu r in g I n d u s tr ie s
M A N U F A C T U R IN G
[Indexes are based on 3-year average, 1923-25=100, and are adjusted to 1935 Census of Manufactures. N ot comparable to indexes published in pamphlets prior to August 1938.
Comparable series available upon request]
Employm ent index
Industry
Average hours worked
per week i
Average hourly
earningsi
Octo Septem August Octo Septem August Octo Septem August Octo Septem August Octo Septem August
ber 1938 ber 1938 1938 ber 1938 ber 1938 1938 ber 1938 ber 1938 1938 ber 1938 ber 1938 1938 ber 1938 ber 1938 1938
Cents
Cents
85.7
71. 7
99.0
83.9
75.4
93.5
81.0
68.7
94.9
76.9
63.7
91.7
$23. 92
26.92
21.34
$23. 32
25.81
21.34
$22.90
24.98
21.25
37.4
37.4
37.4
36.9
36.0
37.5
36.3
35.4
36.9
81.7
85.1
81.9
64.6
79.4
84.0
78.1
63.0
74.9
73.8
81.0
53.8
6 8 .6
67.6
73.1
53.8
65.3
65.3
66.3
53.0
26. 09
27.11
24.42
19. 54
24. 59
25.25
2 2 . 82
19. 77
24.11
24.70
2 1 .6 8
2 0 .0 0
34.9
32.2
35.0
34.1
33.0
30.0
32.5
34.2
32.4
29.6
30.7
34.3
75.3
84.0
69.9
56.9
75.3
83.9
70.5
57.4
75.3
83.5
70.7
57.8
77.6
43.5
66.9
73.2
74.5
41.5
60.6
73.1
114.1
73.4
41.9
86.3
62.0
135.1
67.3
37.7
65. 7
59.6
119.9
60.9
34.5
57.6
57.3
109.9
23. 22
26.94
26.32
24.14
23.94
2 1 . 82
25.45
23. 8 6
23. 21
23. 67
20. 63
24. 48
23.06
22. 38
23.13
39.3
36.3
38.8
36. 1
39.5
36.8
34.5
36. 3
35.0
37.9
34.6
33.0
35. 2
34.0
37.0
59.7
74.3
6 8 .0
60.0
73.9
65.8
66.3
62.6
60.8
74.1
65.7
65.8
62.7
8 6 .2
69.8
79. 7
60.5
97.6
69.0
76.0
59.8
99.5
59.0
75. 7
50.5
89.2
53.3
69.2
49.7
103.0
55.5
61.5
51.2
107.0
24.98
26.98
26. 12
22.50
23.00
25 71
25. 93
22.85
24.27
23.95
26.94
23. 40
36.3
41.0
36.3
37.3
33.3
39.4
35.8
38 2
35. 2
36.0
36.9
39.2
77.0
146.5
87.2
93.7
136.1
74.8
127.9
85.4
90.3
136.4
71.9
106.2
84. 1
99.8
135.0
71.9
156. 1
81.9
92.4
119.7
67.4
134.2
78.6
87.1
63.0
99.8
76. 1
95.6
120.5
23.11
25.65
26. 07
27.11
28. 43
2 2 . 28
25.31
25.57
26. 55
28. 62
21.64
22.64
25.08
26. 43
28.82
38.2
37.9
36.3
35.2
34.9
36.4
36.9
35.4
34.6
35.3
35.2
34.0
34.6
34.5
35. 7
80.7
77.4
74.0
78.0
73.0
67.7
26. 71
26.07
25.28
36.5
35.3
34.2
73.2
73. 7
73.8
83.4
77.5
115.8
108 0
61. 2
125.3
83.1
77.7
114.2
93.5
59.8
82.6
77.1
107. 1
88.9
57.7
117.7
90.4
69.4
110.5
97.9
56. 2
128.1
90.0
89.9
67.2
97.4
75. 5
50. 2
97.9
28.01
25. 54
27.12
22.53
24. 09
24. 55
28. 0 0
25.02
26.87
2 2 . 21
23. 42
22. 85
28.13
24.87
25.86
35.8
36.0
36.8
39. 1
36. 6
38.0
35.6
35.2
36.3
37.5
35.3
35.4
35.9
34.9
35.4
35.7
33.9
31.0
78.5
70.9
73.8
57.7
78.8
71.0
74.1
59.4
66. 5
64.6
78.7
70.9
73.2
59.5
67.3
64.3
8 8 .8
63.7
71.0
57.9
Cents
75.3
101.7
89.5
79.1
99. 8
63.2
70.8
57.7
62.9
70.2
57.8
Durable goods
Iron and steel and their products, not including
m achinery_____________ _______________________
Blast furnaces, steel works, and rolling m ills..
Bolts, nuts, washers, and rivets........ ..................
Cast-iron pipe_______________ ___________ _
Cutlery (not including silver and plated cut
lery) and edge tools______________________
Forgings, iron and steel___ ___________ ______
Hardware_________________________________
Plumbers’ supplies_______________ ____ _____
Stamped and enameled ware_______ _______
Steam and hot-water heating apparatus and
steam fittings______________________ _____
Stoves____________________________ ________
Structural and ornamental metalwork______
Tin cans and other tinware ...... .............. ..............
Tools (not including edge tools, machine tools,
files, and saws)............................. .......................
W irew ork...________ _______ ______________
Machinery, not including transportation eq u ip m en t.
Agricultural implements (including tractors)..
Cash registers, adding machines, and calculating machines............... ..........................................
Electrical machinery, apparatus, and supplies.
Engines, turbines, water wheels, and wind
mills.......... ........................ ................ .................. .
Foundry and machine-shop products________
Machine tools________ _____ ___ ____ _______
Radios and phonographs____________ _______
Textile machinery and parts________________
Typewriters and parts__________ __________
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Federal Reserve Bank of St. Louis
84. 1
8 6 .6
84.9
65.4
80.0
45.6
79.5
73.1
129.1
71.3
83.1
61.1
1 2 1 .6
1 2 1 .6
1 2 0 .8
6 8 .1
107.8
83.5
53. 8
115.7
2 1 .2 0
22. 78
19.97
66.7
60.5
69.0
6 6 .2
72.0
60.6
60.8
6 8 .0
71.7
77.7
82.2
6 6 .0
64.6
69.1
65.9
72.6
59.9
61.5
68.7
72.1
77.1
81.8
69.2
66. 6
73. 1
59. 7
61.3
66.7
72.0
76.8
81.6
M o n th l y L a b o r R e v ie w — J a n u a r y 1 9 3 9
A ll manufacturing in d u stries........... ................. .............
Durable goods-------------- ------- --------------- ---------Nondurable goods_______ ________ ___________
Average weekly
earnings 1
Pay-roll index
63.8
755.5
64.9
27.7
16. 1
89.9
87.9
136.3
92.7
79.9
96.0
76.2
59.8
65.4
65.8
79.0
51.0
758.7
48.0
24.3
18.0
89.1
83.0
128.5
89.0
77.7
86.7
68.4
57.5
63. 1
64.0
76.0
-84.7
780.8
92.5
23.4
11.1
95.1
88.5
148.4
96.2
85.6
91.8
78. 1
62.4
62.2
60.0
68.4
64.8
727.2
66.3
25.7
54.0
53. 1
70.1
52.0
70.1
87.5
42.3
77.7
54.0
53.5
67.8
51.2
68.0
82. 1
43.0
74.8
52.8
52.4
66.3
49.9
69.9
78.7
43.3
72.3
97.5
87.2
76.9
83.7
79.9
105.8
89.1
114.5
143.9
83.3
70.2
156.3
61.2
71.9
119.6
104.5
171.4
98.9
149.2
74.2
119.2
89.6
89.9
81.2
97.9
86.6
72.7
83.2
76.5
104. 1
90.0
111.8
140.7
80.1
69.1
150.3
63.2
72.7
122. 1
107.5
177.1
97.3
138.1
79.3
117.9
92.3
93.8
78.6
95. 1
85.1
67.6
81.3
72.1
101.9
88. 1
109.2
138.2
74.4
68.4
150.3
61.3
75.1
116.3
104.3
165.9
94.7
127.2
68.2
117.3
92.7
94.6
77.3
33.87
30.79
35.03
25.61
22.14
30. 75
26.06
26. 66
27.28
21. 66
25.89
25.53
26. 77
26. 34
21.09
20. 77
32.65
29. 87
33.81
25.48
22.13
30. 60
25.15
26.04
26. 32
20. 66
23. 95
25. 31
25.56
25.95
21.31
21. 50
31.22
29.10
32. 33
25.26
23. 37
29.99
24.14
24.89
25. 63
19.11
22.70
23. 73
23.13
25. 72
68.1
49.9
712.8
47.0
22.3
13. 1
90.0
74. 1
125.8
83.4
70.3
70.1
58.2
48.5
57.9
58.1
62.5
46.0
50.4
63.0
40.6
65.4
92.9
30.1
72.8
45.5
50.6
58.3
38.6
63.4
82.6
31.3
63.9
45.6
50.2
56.5
37.2
65.4
78.6
32.0
58. 7
22.40
20. 94
23.96
20. 37
26.02
25.47
23. 99
23.33
22.17
20.88
23.00
19. 77
25.96
24.13
24. 31
21.40
83. 1
76.5
66.3
72.5
77.5
92.0
78.0
121.9
167.0
77.0
61.9
131.0
50.2
58.1
93.0
74.9
128.8
104.8
140. 1
62.7
99.3
69.6
64.5
81.7
84.1
74.8
60.9
71.1
71.2
89.5
95.0
116.0
159. 1
71.6
59.3
128. 1
50.6
57.5
99.5
80. 1
137. 6
96.1
124.9
91.6
97.4
74.0
70.9
78.9
80.0
73.4
55.4
68.4
65.3
87.4
87.2
111.7
154.3
65.2
57.7
126.1
50.2
62.1
90.4
7A4
128.1
85.8
109.5
59.6
93.4
77.0
75. 1
77.9
17.00
16. 64
22.95
14.03
18. 56
20. 99
22.13
18. 63
20. 13
17.91
14. 86
18.99
15.83
18. 75
18.01
18.68
19. 94
17.75
14. 85
21.92
12.84
18.32
16.97
24. 23
17.03
16.43
22.31
13.82
17. 95
20.85
26.85
18. 11
19. 60
17. 27
14. 39
19. 06
15.99
18. 39
18. 68
19. 33
20. 69
16. 54
14.17
28.29
12. 69
18.98
17.87
24.24
11.1
92.3
81.4
138.8
89.1
78.1
81.4
69.2
55.6
60.3
60.0
36.4
40.1
36.3
35.0
29.0
36.5
37.8
38.8
36.9
36.3
41.0
38.1
39.5
37.7
40.3
39.9
35.3
39.8
34.6
34.7
31.1
35.9
36.2
36.9
35.9
33.0
38.6
35.4
35.9
37.6
40.5
39.3
87.8
75.5
90.0
73.9
75.9
83.2
65.9
66.5
70.9
57.5
56.6
65.9
64.5
68.9
52.0
51.8
89.7
75.1
93.3
72.8
76.4
83.7
20.43
38.6
40.4
39.0
34.7
29.2
36.9
39.7
40. 1
38.5
37.7
45.0
38.7
41.5
38.2
41.0
40.5
67.2
71.3
56.9
57.7
66.5
64.6
68.8
52.6
52.4
88.3
74.1
93.6
72.8
75.2
83.6
66.6
67.5
71.5
57.8
57.7
67.1
64.6
68.4
52.3
52.2
22.79
20.90
22.77
19. 56
26. 06
23.95
24.37
20. 40
42.4
40.9
37.1
38.8
37.8
35.6
35.1
37.4
41.6
40.3
36.2
38.0
37.4
34.3
35.7
35.7
41.8
40.9
35.9
38.3
37.8
33.6
35.7
34.4
52.8
52.0
64.0
52.6
69.2
71.6
67.5
62.0
53.4
52.5
63.2
51.6
69.4
70.7
67.1
62.4
54.6
51.9
63.4
51.1
69.0
71.2
67.7
62.9
16.87
16. 56
21.65
13. 67
17. 17
20. 75
25.21
17. 88
19. 38
16. 89
14. 12
18.91
16. 22
19.21
17.68
18.40
20. 23
15.27
13. 46
21.98
12.17
19.80
18. 85
24. 29
35.5
37.0
36.1
36.8
39.9
39.2
31.2
37.7
37.5
39.2
36.1
40.8
37.2
35.6
33.1
31.5
33.0
38.8
36.7
33.9
34.7
35.3
34.6
38.5
35.4
36.3
34.9
36.2
39.0
38.6
36.4
36.4
36.2
38.2
34.6
40.8
35.7
35.0
33.9
32.3
34.0
36.2
34.9
40.1
34.9
36.8
36.3
38.7
34.7
36.1
34.1
35.6
36.8
38.3
35.3
35.9
35.7
37.1
34.1
40.4
36.7
36.4
32.5
31.3
32.9
33.3
33.8
34.3
33.9
38.4
38.4
38. 7
48.6
45.9
63.6
38.1
46.9
53.0
67.2
50.8
54.4
45.4
41.5
46.0
42.2
52.7
- 53.1
59.1
54.8
45.8
36.4
62.3
37.0
53.0
50.6
63.0
49.2
46.2
63.9
38.3
46.4
53.4
71.1
51.1
54.9
44.8
41.6
47.6
44.5
52.7
53.9
59.4
55.4
45.7
35.7
69.0
36.5
52.4
50.1
62.9
48.9
46.4
63.7
38.3
46.6
53.8
73.1
51.6
55.5
44.6
41.6
47.0
43.8
52.9
53.1
58.6
54.8
46.0
36.0
62.3
36.4
51.6
49.3
62.9
2 1 .0 2
6 6 .1
Nondurable goods
Textiles and their products_______ _____ ________
Fabrics.............. ........................................................
Carpets and rugs.............................................
Cotton goods...... ..............................................
Cotton small wares............................... .........
Dyeing and finishing textiles.........................
Hats, fur-felt........ .................................... .......
K nit goods...... ...................................................
Hosiery................ ............................ ..........
Knitted outerwear_____ ____________
Knitted underwear....... ...........................
Knitted cloth.............................................
Silk and rayon goods.................... ..................
Woolen and worsted goods............................
Wearing apparel____ ________ ______________
Clothing, men’s . . . ................... .............. .........
Clothing, women’s . ___________ _________
Corsets and allied garm ents............ ............
M en’s furnishings........................ ....................
M illinery............................................................
Shirts and collars....... .....................................
Leather and its manufactures____________ _______
Boots and shoes.....................................................
Leather...................................................... ..............
See fo o tn o te s a t end o f table.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
237
79.9
785. 8
86.9
25.2
16. 1
92.1
92.2
142. 4
96.4
83.6
100. 3
85.4
64.0
66.4
65.7
79.7
T r e n d o f E m p lo y m e n t a n d P a y R o lls
115 6 52 — 39 ------ 16
Transportation equipment________________
Aircraft.......................................................... .
Automobiles.................................................
Oars, electric- and steam-railroad........... .
Locomotives________________________
Shipbuilding.................................................
Nonferrous metals and their products.............
Aluminum manufactures_____ ____ ___
Brass, bronze, and copper products____
Clocks and watches and time-recording devices
Jewelry....................................................... ...........
Lighting equipment-............................ ............._
Silverware and plated ware............... ...............
Smelting and refining—copper, lead, and zinc
Lumber and allied products.........................................
Furniture...........................- ...................................
Lumber:
M illwork...........................................................
Sawmills...... .................................................. .
Stone, clay, and glass products-_________________
Brick, tile, and terra cotta...................................
C e m e n t................................................... ............ .
Glass................ .....................—................................
Marble, granite, slate, and other products___
Pottery.......................................................................
238
T able
1.—Employment, P ay Rolls, Hours, and Earnings in Manufacturing and Nonmanufacturing Industries— Continued
M ANUFACTURING—Continued
Em ploym ent index
Average weekly
earnings 1
Pay-roll index
Average hours worked
per week i
Average hourly
earnings i
Industry
Octo Septem August Octo Septem August Octo Septem August Octo Septem August Octo Septem August
ber 1938 ber 1938 1938 ber 1938 ber 1938 1938 ber 1938 ber 1938 1938 ber 1938 ber 1938 1938 ber 1938 ber 1938 1938
Flour______ .............................................._ .............
C e n ts
128.7
144.3
233.6
99.4
147.3
93.0
77.5
73.8
97.4
260.7
90.0
66.3
57.7
67.4
105.5
Chemicals and allied products, and petroleum re-
Robber products.___ ____ , ____________ ____
Rubber boots and shoes........... ...........................
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
127.0
139.5
272.6
85.6
130.3
91.6
79.7
63.7
1 1 0 .0
104.8
104.3
98.8
104.0
1 0 2 .8
99.6
106.0
98.9
105.1
99.0
102.5
87.9
108. 7
113.4
119.5
111.9
115.0
113.0
1 2 1 .0
1 1 1 .1
108.1
121.9
104.8
110.3
68.4
108.2
81.9
68.9
1 2 2 .1
Druggists’ preparations_______ ____ _____
Explosives^---*..................................... - .........-
138.3
144.5
260.0
110. 1
251. 2
71.6
77.9
93.1
94.2
74.7
90.1
64.3
60.4
64.8
102.7
94.8
226.1
80.0
60.7
63.3
60.3
103.7
112.7
106.5
1 0 2 .8
Printing and publishing:
142.7
145.6
250.3
103.7
272.0
87.9
77.2
83.4
95.5
110.3
84.1
79.5
112.9
314.4
93.2
77.7
60.1
63.5
123.3
1 0 0 .2
92.7
66.3
62.6
6 6 .8
112.5
113.5
109.6
84.9
82.1
112.5
315.2
92.6
75.9
58.0
61.9
1 2 1 .0
1 1 0 .6
293.9
90.7
72.5
54.1
60.6
113.2
1 2 0 .1
132.8
116.2
128.3
104.0
123.9
96.5
70.1
116.3
302.6
94.8
79.7
61.6
69.1
1 2 2 .6
136.7
143.5
297.6
90.0
238.1
90.9
81.2
70.1
108.7
97.3
84.8
61.0
71.8
59.6
1 0 1 .1
105.4
101.5
8 8 .2
106.4
118.9
134.6
114.1
121.4
95.1
118.6
93.1
77.4
114.5
308.2
94.6
76.7
57.7
67.3
116.6
C e n ts
58.0
98.0
97.3
101.9
$24.16
25.30
32. 50
22.52
16.07
18.23
26.88
29. 33
28.51
22. 22
24.15
16.84
17.17
16. 77
28.14
22. 29
24.85
$23.43
25.86
33.12
22. 76
15.83
19.22
27. 72
28.19
28. 6 6
25.00
24. 59
16.96
17.97
16.72
27.91
21.74
23.92
$23. 18
25. 33
34.51
22.89
14. 67
18.03
26. 75
28.92
27.93
23. 33
23.90.
16.89
17.17
16.82
27.48
20.90
24.26
41.0
42.0
38.5
46.6
37.4
40.2
45.2
45.1
41.8
43.7
38.6
37.1
35.0
37.4
38.6
42.2
40.6
41.3
42.8
39.2
46.9
38.3
42.1
46.1
46.0
41.9
41.3
40.3
37.1
35.5
37.2
38.0
40.8
39.1
39.7
41.6
40.8
47.7
35.1
37.0
44.6
48.3
40.6
36.2
38.8
36.7
34.0
37.0
37.7
38.9
39.4
59.8
60.9
85.5
48.3
44.8
45.9
58.7
63.5
68.5
51.4
62.5
45.6
49.3
45.2
53.2
61.3
61.7
61.0
45.8
50.7
45.3
76.5
53.8
61.3
8 6 .2
1 0 1 .1
29. 35
37.25
29.68
37.26
29.01
36. 25
37.3
36.5
37.5
36.2
37.1
36.1
79.9
99.1
80.0
98.8
116.9
138.1
110.4
28.35
34.45
25.64
30. 65
13.04
25.31
31.62
16.41
27.83
23.63
28.98
27.27
23.48
31.25
23. 43
28.36
34.58
25.70
29.90
12.93
24.40
30.16
17. 58
27.70
24.02
29.10
26.91
22.79
31.27
22.73
29.02
35. 25
26.16
30. 39
12.83
24.48
31.26
17.70
27.39
24.16
28. 64
25.39
21.54
28. 73
22.34
38.7
35.5
39.9
39.9
51.3
40.3
39.4
36.7
40.1
37.0
39.4
36.6
38.7
33.1
40.0
38.3
35.3
39.5
38.3
50.8
39.4
37.7
38.3
39.7
37.7
39.7
35.9
37.7
33.0
38.5
38.1
36.0
39.0
38.8
46 8
39.3
38.6
37.3
39.2
37.8
39.0
33.9
35.8
30.3
37.7
73.6
97.6
64.8
76.8
25.2
58.9
80.3
44.8
69.4
63.9
73.7
75.6
60.7
94.4
59.2
74.4
98.4
65.3
78.1
25.3
58.7
80.1
45.9
69.9
63.8
73.5
75.8
60.5
94.6
59.4
131.1
139.8
322.0
94.4
203.8
69.3
78.7
80.3
104.8
67.7
80.1
59.0
6 6 .1
1 2 1 .0
57.0
117.2
93.1
65.4
1 1 1 .2
289.0
91.2
69.5
50.9
60.6
107.7
76.4
57.6
61.0
85.4
48.3
42.5
46.2
59.9
60.7
68.6
C e n ts
58.6
61.5
85.2
47.8
42.9
49.0
59.6
59.8
68.9
64.6
61.6
46. S
50.7
45.9
76.0
54.2
61.7
79.3
97.1
76.3
98.6
67.2
78.5
26.8
58.9
80.9
47.5
70.0
63.9
73.5
76.0
60.2
94.1
59.7
M o n th l y L a b o r R e v ie w — J a n u a r y 1 9 3 9
N o n d u ra b le goods— Continued
NONMANUFACTURING
[Indexes are based on 12-montb average, 1929=100]
52.4
87.2
57.9
44. 4
69.3
46.4
83.4
55.2
44.6
71.5
37.6
80.1
51.4
44.6
72.4
43.4
78.3
49.2
39.2
63.9
29.4
71.9
46.1
38.4
66.5
$26.99
23.84
26. 52
22.37
33. 30
$20.64
22.93
26.04
21.68
34. 38
$17.35
21.38
26. 62
22.17
34.11
28.8
26.8
39.5
40.9
39.9
22.1
26.0
39.0
40.6
40.2
18.6
23.6
39.5
41.2
40.5
92.5
88.7
67.5
54.4
83.9
91. 1
88.5
67.0
53. 5
83.8
90.5
88.8
67.7
53.7
82.9
74.7
74.9
74.8
95.3
92.6
91.3
31.57
30. 72
30.25
39.8
39.1
38.6
82.7
81.6
81.3
92.5
92.5
92.7
99.8
98.4
98.9
33.79
33.19
33. 54
39.7
39.8
40.4
84.7
83.4
83.4
69.9
69.3
69.5
68.9
68.4
69.5
32. 22
32. 27
32. 73
44.7
44.8
45.3
71.3
71.3
71.4
89.2
86.1
100.7
82.3
92.9
94.4
106.8
- .9
—. 4
+ 3 .2
88.5
85.0
98.2
81.5
91.8
96.5
107.8
-1 .4
+ .6
-.4
87.6
80.0
86.4
78.3
90.4
97.5
105.0
+ 1 .0
+ (0
+ 2 .6
75.1
71.1
89.7
67.2
80.8
79.5
78.0
+ 1 .2
+. 1
+ 5 .0
74.3
69.7
86.8
66.1
78.9
81.4
81.7
- 1 .2
-.8
- .5
73.7
66.8
78.8
64.3
77.4
83.1
74.3
+ .4
- 2 .5
+ 3 .6
29.69
21.04
17. 62
24.04
15.04
17.24
19.91
35. 76
35.50
30.19
29.38
20.81
17.58
23.71
14.81
17. 05
20.85
34.82
35.18
29. 66
29.35
21.38
18.12
23. 98
14. 64
17.36
19.47
34.71
35.70
29. 69
42.4
42.4
39.0
43.5
46.7
41.4
42.1
(«)
(«)
33.8
42.1
42.2
38.6
43.4
46.4
41.9
43.5
42.3
42.7
38.7
43.8
47.1
42.5
42.0
70.7
53.8
48.1
55.7
32.0
41.8
47.9
(•)
(«)
89.4
70.3
53.3
48.2
54.9
31. 6
41.3
48.3
(«)
(«)
90.3
69.9
54.6
49.8
56.0
30.7
41.1
46.8
1 Average w eekly earnings are computed from figures furnished by all reporting estab
lishments. Average hou s and average hourly earnings are computed from data supplied
by a smaller number of establishments, as all reporting firms do not furnish man-hours
The figures are not strictly comparable from month to month because of changes in the
size and composition of the reporting sample. Hours and earnings for all manufacturing
industries now relate to 87 industries instead of 89 which were covered in the July apd
prior issues of the pamphlet. The two industries excluded are electric- and steapi-railroad
repair shops. The averages for the durable goods group have also been affected by this
exclusion. See text in section headed, “ Employment, Pay Rolls, Hours, and Earnings.”
* Indexes adj usted to 1935 census. Comparable series back to January 1929, presented in
January 1938 issues of the pamphlet Employm ent and Pay Rolls.
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Federal Reserve Bank of St. Louis
20.0
64.2
43.7
39.2
66.8
( 0)
(«)
(•)
32.9
(')
32.9
90.3
3 Average weekly earnings, hourly earnings, and hours not strictly comparable with
figures published in pamphlets prior to January 1938 as they now exclude corporation
officers, executives, and other emplpyees whose duties are mainly supervisory.
4 Cash payments only; the additional value of board, room, and tips cannot be com
puted.
* Indexes of employment and pay rolls are not available; percentage changes from pre
ceding month substituted.
« N ot available.
7 Less than Ho of 1 percent.
T r e n d o f E m p lo y m e n t a n d P a y R o lls
Coal mining:
Anthracite 1.............................. ...............................
Bituminous *...................................................... ......
Metalliferous mining______ _________ __________
Quarrying and nonmet.allic mining......................... .
Crude-petroleum producing..................... ................. .
Public utilities:
Telephone and telegraph *....................................
Electric light and power and manufactured
gas*........................................................................
Electric-railroad and motor-bus operation and
maintenance *........................................................
Trade:
Wholesale *................................................................
Retail * .................................................................. .
General merchandising *................ ...............
Other than general merchandising »............
Hotels (year-round)* * 4................... ............... ..............
Laundries *.......................................................................
Dyeing and cleaning *................................. .................
Brokerage * *.....................................................................
Insurance * '........................... .........................................
Building construction *..................................................
ts3
OJ
v©
240
Monthly Labor
R e v ie w —January
1939
IN D E X E S OF EMPLOYMENT AND PAY ROLLS
Indexes of employment and pay rolls are given in table 2 for all
manufacturing industries combined, for the durable- and nondurablegoods groups of manufacturing industries, and for 13 nonmanufac
turing industries, including 2 subgroups under retail trade, by months,
from October 1937 to October 1938, inclusive. The accompanying
chart indicates the trend of factory employment and pay rolls from
January 1919 to October 1938.
The indexes of factory employment and pay rolls are computed
from returns supplied by representative manufacturing establish
ments in 87 manufacturing industries and relate to wage earners only.
Formerly 89 manufacturing industries were covered in the Bureau’s
monthly survey, but two of these—electric and steam railroad repair
shops—are now excluded. The base used in computing the indexes
is the 3-year average 1923-25 as 100. In October 1938 reports were
received from 24,943 manufacturing establishments employing
4,094,975 workers, whose weekly earnings were $97,963,237. The
employment reports received from these establishments cover more
than 55 percent of the total wage earners in all manufacturing indus
tries of the country and more than 65 percent of the wage earners in
the 87 industries included in the monthly survey of the Bureau of
Labor Statistics.
The indexes for the nonmanufacturing industries are based on the
12-month average for 1929 as 100. Figures for mining, laundries,
dyeing and cleaning, and building construction cover wage earners
only, but the figures for public utilities, trade, hotels, brokerage, and
insurance relate to all employees, except corporation officers, execu
tives, and other employees whose duties are mainly supervisory. For
crude-petroleum producing they cover wage earners and clerical field
force.
Data for both manufacturing and nonmanufacturing industries are
based on reports of the number of employees and amount of pay rolls
for the pay period ending nearest the 15th of the month.
TREND OF INDUSTRIAL AND B U SIN E SS EMPLOYMENT, BY STATES
A comparison of employment and pay rolls, by States and geographic
divisions, in September and October 1938, is shown in table 3 for all
groups combined, and for all manufacturing industries combined
based on data supplied by reporting establishments. The percentage
changes shown, unless otherwise noted, are unweighted—that is, the
industries included in the manufacturing group and in the grand
total have not been weighted according to their relative importance.
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Federal Reserve Bank of St. Louis
E mployment s pay rolls
A L L MANUFACTURING INDUSTRIES
a
a-
I
.o'*
Iaa
aI
>
3
a
UNITED STATES BUREAU OF LABOR STATISTICS
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
to
242
M o n th l y L a b o r R e v ie w — J a n u a r y 1 9 3 9
T able 2.—Indexes of Employment and P ay Rolls in Selected Manufacturing 1 and Non
manufacturing * Industries, October 1937 to October 1938, Inclusive
Employment
Industry
1938
1937
Avg. Oct. Nov. Dec. Jan. Feb. Mar. Apr. M ay June July Aug. Sept. Oct.
1937
Manufacturing
All industries------------------ 105.8 107.2 1 0 1 . 1 94.5 87.8 8 8 . 2 87.7 85.7 83.4 81.6 81.9 85.7 8 8 . 8 89.5
104.0 106.6 1 0 0 . 8 91.7 81.7 80.1 79.3 77.0 75.0 72.4 70.3 71.7 75.3 - W Î
97.2 93.7 95.9 95.8 94.0 91.5 90.3 92.9 99.0 101.7 99.3
Nondurable goods *— 107. 6 107.8 101.4
Nonmanufacturing
Bituminous-coal mining. „
60.2 61.5 60.9 61.4 59.6 60.0 59.3 57.0 52.8 56.0 44.6 37.6 46.4 52.4
101. 4 99.4 96.9 95.5 93.2 85.8 82.2 80.2 78.5 80.1 83.4 87.2
99. 3
76.8 82.9 75.4 70.4 67.4 63.6 62.3 61.6 58.8 56.0 49.7 51.4 55.2 57.9
Quarrying and nonmetallic
51.4 53.3 49.9 43.9 38.2 37.8 38.9 41.7 43.7 43.6 44.1 44.6 44.6 44.4
Crude-petroleum produc-
76.5 75.3 74.2 73.6 73.8 73.2 72.8 72.3 72.4 71.5 69.5
78.0 77.8 75.7 74.9 74.8 75.0 74.8
76.5 77.5 77.2
Telephone and telegraph. . 77.8 79.6 78.9
Electric light and power, 95.6 98.5 97.3
and manufactured g a s ...
Electric-railroad and motorbus operation and 73.1 73.4 73.2
92.0 94.0 93.5
89.8 92.1 91.7
General merchandis- 104.3 108.1 109.8
Other than g e n e r a l
85.9 87.9 86.9
94.9 96.9 96.6
1 0 0 . 6 99.9 97.8
Dyeing and cleaning........... 107.5 110.5 103.5
96.1 93.8 92.6 92.0 91.8 91.7 92.2 92.3 92.7 92.5 92.5
72.8 72.3 71.2 70.8 71.1 70.6 70.4 70.1 69.5 69.3 69.9
93.3 91.0 90.4 89.1 88.5 87.3 87.2 8 6 . 8 87.6 88.5 89.2
100.4 84.1 82.4 83.0 8 8 . 2 83.8 83.6 81.1 80.0 85.0 8 6 . 1
92.4 91.9 87.9 86.4 98.2 100.7
145.9 91.5
8 8 .8
90.5
82.1
94.3
96.8
96.8
80.7
94.5
95.7
95.6
81.0 84.9 81.5 81.4 79.3
93.4 93.5 93.7 92.2 90.7
94.8 95.4 96.2 96.6 97.8
98.5 1 1 1 . 8 109.9 1 1 0 . 8 108. 6
88.5
94.9
97.0
99.2
1 0 1 .0
78.3
90.4
97.5
105.0
81.5
91.8
96.5
107.8
82.3
92.9
94.4
106.8
Pay rolls
Manufacturing
1 0 2 . 0 104.5 92.9 84.2 75.0 76.9 77.1 74.6 72.9 70.8 70.6 76.9 81.0 83,9
Durable goods 5 --------- 103.5 108.2 94.8 81.0 67.1 67.2 67.4 65.6 64.2 61.7 58.6 63.7 68.7 75.4
Nondurable goods *— 100.4 100.3 90.8 87.7 84.0 87.8 87.9 84.7 82.6 80.9 84.1 91.7 94.9 93.5
Nonmanufacturing
46.9 55.4
Bituminous-coal m in in g ... 88.5 100.7
Metalliferous mining.......... 74.0 81.7
Quarrying and nonmetal45.4 49.3
Crude-petroleum producing_________ _________- 6 8 . 2 69.9
Telephone and telegraph. . 89.6 94.9
Electric light and power,
and manufactured g a s ... 99.6 105.3
Electric-railroad and motorbus operation and
70.6 71.4
76.6 79.3
Retail trade_____________ 73.1 75.9
General merchandis92.5 96.2
Other than general
69.1 71.7
80.6 84.1
83.0 83.4
Dyeing and cleaning-------- 77.6 83.6
49.0 51.3 46.5 46.1 47.3 39.0 38.3 49.7 2 0 . 2 2 0 . 0 29.4 43.4
91.1 95.1 70.4 74.0 68.4 56.3 55.3 57.0 56.8 64.2 71.9 78.3
71.6 65.1 59.1 55.8 56.3 53.3 51.2 46.1 38.0 43.7 46.1 49.2
41.7 33.4 27.7 28.6 30.2 33.9 38.3 37.3 37.0 39.2 38.4 39.2
70.2 69.8 6 8 . 2 69.6 6 8 . 0 6 8 . 0 66.7 67.6 66.7 6 6 . 8 66.5 63.7
91.4 94.7 93.7 89.9 92.6 91.6 91.3 90.9 90.9 91.3 92.6 95.3
103.8 102.4 98.9 98.5 98.6 97.6 97.4 98.6 98.3 98.9 98.4 99.8
71.8 71.9 70.6 70.2 69.9 70.0 71.2 69.7 69.0 69.5 68.4 68.9
78.3 77.8 75.4 75.3 74.7 74.6 75.1 73.8 73.6 73.7 74.3 75.1
75.3 80.6 70.1 68.4 6 8 . 6 72.2 70.0 69.5 6 8 . 1 6 6 . 8 69.7 71.1
97.1 123.3 84.6 81.5 82.2 89.4 84.4 84.3 80.4 78.8
70.8 71.8 67.1 65.7 65.8 6 8 . 6 67.0 66.4
84.3 82.6 81.6 83.6 80.9 80.5 80.5 79.6
81.1 81.1 80.1 79.1 78.6 80.6 80.9 81.8
73.7 6 8 . 6 65.5 65.2 6 8 . 2 87.2 80.7 83.3
65.6
77.4
83.0
77.5
8 6 .8
89.7
64.3 6 6 . 1 67.2
77.4 78.9 80.8
83.1 81.4 79.5
74.3 81.7 78.0
i
3 -year average, 1923-25=100—adjusted to 1935 Census of Manufactures.
Comparable indexes for earlier
months are in the November issue of M onthly Labor Review.
j 1 2 -month average for 1929=100.
Comparable indexes are in November 1934 and subsequent issues o f
Employment and Pay Rolls, or in February 1935 and subsequent issues of M onthly Labor Review, except
for anthracite and bituminous-coal mining, year-round hotels, laundries, and dyeing and cleaning. Indexes
for these industries from January 1929 forward have been adjusted to the 1935 census and are presented in
the January 1938 and subsequent issues of Employm ent and Pay Rolls.
j Includes: Iron and steel, machinery, transportation equipment, railroad repair shops, nonferrous
metals, lumber and allied products, and stone, clay, and glass products.
* 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,
* N ot including electric-railroad car building and repairing.
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243
T r e n d o f E m p lo y m e n t a n d P a y R o lls
The totals for all manufacturing industries combined include figures
for miscellaneous manufacturing industries in addition to the 87
manufacturing industries presented in table 1. The totals for all
groups combined include all manufacturing industries, each of the
nonmanufacturing industries presented in table 1 (except building
construction), and seasonal hotels.
Similar comparisons showing only percentage changes are available
in mimeographed form for “all groups combined,” for “all manufac
turing,” for anthracite mining, bituminous-coal mining, metalliferous
mining, quarrying and nonmetallic mining, crude-petroleum produc
ing, public utilities, wholesale trade, retail trade, hotels, laundries,
dyeing and cleaning, brokerage, and insurance.
T able 3.— Comparison of Employment and P a y Rolls in Identical Establishments in
September and October 1938, by Geographic Divisions and by States
l Figures in italics are not compiled by the Bureau of Labor Statistics, but are taken from reports issued by
cooperating State organizations]
Total—all groups
Oeographic divi
sion and State
Per
cent
N um N um
age
Amount
ber of ber on change of pay roll
estab pay roll from ( 1 week)
lish October Sep October
ments
tem
1938
1938
ber
1938
New England_____ 13, 585
M aine________
850
N ew H am p
shire.......... .
641
Vermont______
468
M assachusetts. i 7,960
Rhode Isla n d .. 1,226
Connecticut___ 2,440
853, 831
53,238
39,889
15,959
1,61,330
Manufacturing
Per
cent
age
change
from
Sep
tem
ber
1938
Per
cent
N um N um
age
Amount
ber of ber on change of pay roll
estab pay roll from (1 week)
lish October Sep October
ments
tem
1938
1938
ber
1938
Dollars
+ 1 . 6 19, 897,099
- 2 . 6 1, 054,100
+ .2
- .8
831, 875
349,824
+1.9 10,904,002
+ 4 .4
- 1 .9
+ 1 .5
+ .7
+3.3
3,611
289
206
153
1,786
33,317
9, 639
264,629
+ 2 . 0 1,999, 8 6 6
+ 2 .5 4,757,432
+ 9 .6
+ 7 .0
Middle Atlantic___ 33, 503 2, 068, 279
New York____ 20, 768 948, 273
N ew Jersey___
4,350 338, 537
Pennsylvania.. 8,385 781,469
+ 1 .3 54,036, 932
+ 1 . 1 26,174,490
- . 5 8 ,754, 506
+ 2 .4 19,107,936
+ 3 .1 6,369 1,148,256
+ 1 . 0 » 2,522 424,934
+ 1 .7 1,541 264,234
+ 6 .7 2,306 459, 088
432
745
Dollars
576,313
42,613
89,984
193,431
+ 0.9 12,612,182
- 3 .1
790,371
+ 2 .8
- 3 .5
-. 1
- 1 .3
-
+ .8
70,153
155,962
South Atlantic........ . 11,216
Delaware...........
260
Maryland.......... 1,632
District of Co
lumbia........ .
1,109
Virginia.........
2,073
West Virginia— 1,205
450,537
125,744
6 6 , 791
10, 699,338
1 .0
- .5
52,886
+ .7
+ 2.4
-.5
+ 2 .9
+ 2 .9
» -. 2
847, 510
15,270
+ 1 .7 16,187,449
- 6 .6
349,740
+ 3 .1
- 2 .1
160, 730
5,815
8,751
29,821
129,416
41.389
113,142
135,046
+ .3
+
1, 517,082
3,709,523
+ .2
- .3
133,741
219,115
+ 1 .1
641,773
+ 5 .2
»+ 1 . 0 1,208,927
See footnotes at end of table.
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Federal Reserve Bank of St. Louis
- .2
-2 .5 3,269,177
+1.4 3,019,254
+ 2 .9 1,091,925
2,068,286
+ 2 .3 3,338,243
2,495
640
387
816
30
29
135
668,265
199,259
5,820,141
1 .8
+ .7
+ 7 .2
+ 6 .9
28,902, 563
+ 2.3
6 , 709,533
+ 2 .5
+ .8
+ .5 11,421,198
- .3
3
-.3
+ 1.4 1,437,948
+ 2.3 3,696,198
- .5
+1-4 10, 771,832 3 + 5 .7
East North Central . 25,390 1,985, 576 + 3 .8 53, 256,453 + 7 .9 8 , 548 1,446, 368 + 5.1
Ohio_________
7,386 522,665 +1.5 13,545, 023 +5.1 2,459 376,139 + 1.9
Indiana______
2,987 239,133 +1.0 6,896,444 +7.1 1,089 185,511 +1.1
Illinois_______ 4 6,730 662,590 +1.7 14,628,363 +3.0 2,458 368,660 +1.0
Michigan____
3,966 434,719 +14.3 13,556,915 + 2 0 . 0 1,046 363, 593 +18.9
Wisconsin____ » 4,221 226,1,69
-■4 5,629,708 +3.1 « 1,496 152,465 *-2.0
West North Central. 12,251
M innesota____ ? 2,661
Iowa_________
2,182
Missouri______ 2,946
North D a k o ta .
618
South D akota..
525
Nebraska_____
1,183
Kansas...........
8 2,236
Per
cent
age
change
from
Sep
tem
ber
1938
39, 955,604 + 10.5
9,937, 539 + 6 .3
4,703, 787 + 8 .3
9,478,591 +3.1
12,019,158 +24.6
3,816,529 3+4-l
209, 720
+ .5 5,030,125 + 1 .9
-3 .4 1,294,315
+ .5
35,466 - 1 . 0
849,771 - 1 . 0
8 8 , 551
+ 2 . 1 1,979,372 + 4 .2
482 - 2 . 0
12,472 - 4 .0
2,367 + 9 .8
59,937 +11.9
10,593 +15.1
244,139 +10.3
49,183
468
23,078
2, 889
565,408
-
1.0
590,119
-1 .9
+
1 .1
9,826,435
+ 3.1
-. 1
-. 6
+7. 0
+3.6
642
87,262
-7 .2
226,247 -4 .0
5 - , 5 2,000,416 3+3.1
+ 2 .8
+ .9
+ 5 .0
41
436
213
3,435
76,686
48,248
- .5
117,062
+ • 4 1,372,685
+ 1.3 1,170,782
84
10,014
244
Monthly Labor Review—January 1939
T a b l e 3 . — Comparison of Employment and P ay Rolls in Identical Establishments in
September and October 1938, by Geographic Divisions and by States— Continued
Total—all groups
Geographic divi
sion and State
Per
cent
N um N um
age
Amount
ber of ber on change of pay roll
estab pay roll from (1 week)
lish October Sep October
tem
1938
ments
1938
ber
1938
South A t l a n t i c —
Continued.
North Carolina.
South Carolina.
Georgia____ _
Florida_______
East South Central.
K entucky.. . . .
Tennessee____
Alabama_____
Mississippi___
Manufacturing
Per
cent
age
change
from
Sep
tem
ber
1938
Per
cent
N um N um
age
Amount
ber of ber on change of pay roll
estab pay roil from (1 week)
lish October Sep October
tem
1938
ments
1938
ber
1938
Dollars
1.617
798
1,483
1,039
4, 725
1,411
1,344
1,444
526
172,092
89,114
110,398
41,643
289, 576
78, 242
99,736
92, 578
19,020
West South Central. 6,302
Arkansas_____ u 1,126
Louisiana_____ 1,087
1,455
Oklahoma____
T e x a s................ 2,634
235,027
M ountain________
Montana_____
Idaho_______
W yoming_____
Colorado_____
New Mexico__
Arizona_______
Utah_________
Nevada______
4,465
687
560
347
1,299
310
452
623
187
Pacific___________ 10, 522
Washington___ 2,893
Oregon_______
1,415
California_____ I2 6 , 21 4
35,277
57, 719
42,852
2,601,828
1, 255,850
1,730,469
731,854
5, 330,968
1,686,564
+ .8
1,774,124
+ 2 . 2 1,601,488
268,792
+ 4 .0
+ 1 .5
+ 1 .0
+ 2 .4
+ 5 .4
+ 1 .2
+2.8
5,087, 481
605,761
+ 1.4 1,132, 353
1,038,175
+ .1
- . 4 2,311,192
Dollars
+ 1 .9
+ 2.4
+ 5 .3
+ 3.7
+ 3 .0
+ 3 .5
+ 4 .8
+ 4 .7
154,917
80,876
83,774
20,196
177,279
30,870
71, 581
61,906
12,922
- .2
1,380
115,235 +
+2.1
+
-
1 .0
1 .2
306
233
131
710
126,£57 + 5 .3 3,033,091
374,910
13,772 + 9 .6
12,182 + 1 1 . 8
288, 218
9,319 + 4 .0
261,046
45,292 + 5 .3 1,033,078
7,354 + 6 . 8
141, 591
393, 749
15,057 + 4 .4
20,827
+ .4
458,756
81, 743
2,754 + 1 . 2
+ 4 .4
+8.4
+ 9 .0
+ 3 .2
+ 2 .7
+3.1
+ 6 .9
+ 1 .6
+4.4
544
75
60
37
193
29
40
97
13
454, 826
92,425
49,459
- 2 .5
+ 1 .0
-7.(1
2,616
532
289
312,942
- 5 .3 12, 828, 700
- 2 . 0 2,427,138
- 9 .1 1, 291,478
-5 .7 9,110,084
2,329,812
1,105, 535
1,187,878
316,018
3,056, 679
650,952
+ .8
1, 246, 526
- .2
+ 1.4
988, 282
170,919
+ 4.5
241
371
193
1,052
292
372
301
87
668
- .9
99,179
Per
cent
age
change
from
Sep
tem
ber
1938
-2 .8
1,795
22,217
32,257
10,705
50,056
+ 1.3
+ 1 .0
+ 2.9
+ 2 .2
+ .9
°)
2,445,799
+ .8
588, 230
254,440
0
+2.1
+ .2
+ 4.3
+ 6 .0
- .6
375,404
+3.0
-1-4 1,227,725
-1 .8
+ .3
+ 1 0 .6
+26.2
+19.6
+32.6
+13.2
1 ,0 1 0 + 1 1 .0
2,776 + 2 .7
7,968 - 5 .7
265
-.7
39,418
4,976
4,186
1,929
16,308
237, 938 - 8 .7
48,069 - 3 .9
27, 748 -1 4 .4
162,121
+ 1.7
+ 2.3
+ 7.4
+ 1.7
+ 3.1
+ 6 .2
+ .1
- 1 .4
905, 521 + 9 .0
132, 500 +23. 5
93,814 + 1 0 . 0
56,455 +26.5
365,883
16,856 + 6 . 2
68,350 + 3.0
164,002
-.7
7,661 - 2 . 1
6 ,475,
254 - 5 .1
1, 248,062
+ .7
721,028 - 1 2 . 0
-9 .0 4,506,164
-5 .4
1 Includes banks and trust companies; construction, municipal, agricultural, and office employment;
amusement and recreation; professional services; and trucking and handling.
2 Includes laundering and cleaning; and water, light, and power.
3 Weighted percentage change.
4 Includes automobile and miscellaneous services, restaurants; and building and contracting.
8 Includes construction but not public works.
8 Does not include logging.
7 Includes banks, real estate, pipe-line transportation, trucking and transfer, railroads (other than repair
shops), motor transportation (other than operation and maintenance), water transportation, hospitals and
clinics; personal, business, mechanical repair, and miscellaneous services; and building construction.
8 Includes financial institutions, miscellaneous services, and restaurants.
8 Weighted percentage change including hired farm labor.
•° Less than Ho of 1 percent.
11 Includes automobile dealers and garages; and sand, gravel, and building stone.
12 Includes banks, insurance, and office employment.
INDUSTRIAL AND B U SIN E SS EMPLOYMENT IN PRINCIPAL
METROPOLITAN AREAS
A comparison of employment and pay rolls in September and Octo
ber 1938 is made in table 4 for 13 metropolitan areas which had a
population of 500,000 or over in 1930. Cities within these areas, but
having a population of 100,000 or over, are not included. Data con
cerning them are presented in a supplementary tabulation which is
available on request.
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T r e n d o f E m p lo y m e n t a n d P a y R o lls
Footnotes to the table indicate which cities are excluded. The
figures represent reports from cooperating establishments and cover
both full- and part-time workers in the manufacturing and nonmanu
facturing industries presented in table 1, with the exception of build
ing construction, and include also miscellaneous industries.
Revisions made in the figures after they have gone to press, chiefly
because of late reports by cooperating firms, are incorporated in the
supplementary tabulation mentioned above. This supplementary
tabulation covers these 13 metropolitan areas as well as other metro
politan areas and cities having a population of 100,000 or more accord
ing to the 1930 census of population.
I able 4.
Comparison of Employment and P ay Rolls in Identical Establishments in
September and October 1938, by Principal Metropolitan Areas
Metropolitan area
Number of
establish
ments,
October
1938
Number
on pay
roll
October
Percentage
change
from
September
Amount of
pay roll
(1 week)
October
Percentage
change
from
September
New York, N . Y.L.
Chicago, 111.»______
Philadelphia, Pa.3. .
Detroit, M ich_____
Los Angeles, Calif.L
14,814
4,549
2, 183
1,670
3,051
671, 762
410,416
194, 378
270,181
150,607
+ 2 .7
+ 2 .0
+ 1 .6
+17.7
+ ( 7)
$18, 520,472
11, 213, 099
5, 233,604
9,080, 752
4, 376, 377
+ 1.7
+ 2 .7
+ 1.7
+21.4
+ 1 .3
Cleveland, Ohio___
St. Louis, M o_____
Baltimore, M d ____
Boston, Mass.5____
Pittsburgh, P a____
1, 723
1,494
1 , 188
1, 574
1,241
118,162
117,085
98, 649
108, 539
168, 2 1 2
+ 2 .1
+ .5
+ 1.9
+ 2 .7
4-3. 5
3,169,953
2, 794, 483
2, 337, 820
2, 961, 959
4, 295, 360
+ 5 .6
+ 3 .3
+ 5.1
+ 1.6
+ 8.4
San Francisco, Calif.
Buffalo, N . Y _____
Milwaukee, Wis___
1,691
895
1,159
79, 784
72, 746
92, 045
- 2 .8
+ 5 .6
- .3
2,365, 111
2, 035, 694
2,450, 021
+ 7.1
+ 4.1
1 Does not include Elizabeth, Jersey City, Newark, or Paterson, N . J., or Yonkers, N . Y.
Does not include Gary, Ind.
Does not include Camden, N . J.
* Does not include Long Beach, Calif.
5
Figures relate to city of Boston only.
5 Does not include Oakland, Calif.
7 Less than Ho of 1 percent.
2
3
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-.2
Recent Publications o f Labor Interest
DECEM BER 1938
Coal Industry
Report of Anthracite Coal Industry Commission [Pennsylvania]. Philadelphia,
1528 Walnut Street, 1938. 652 pp., maps, charts.
In addition to the recommendations of the commission, which would involve
important changes in both the production and distribution of anthracite, this
volume contains reports on various aspects of the industry. One of these gives
the results of a comprehensive investigation of the “bootlegging” of anthracite
in Pennsylvania.
Report of Committee on Prices in Bituminous Coal Industry. Prepared for Confer
ence on Price Research. New York, National Bureau of Economic Research,
1938. xx, 144 pp.
Cooperative Movement
Cooperatives in America, their past, present, and future. By Ellis Cowling. New
York, Coward-McCann, Inc., 1938. xvii, 206 pp.
Recounts briefly the development of Rochdale cooperatives in England and in
other European countries, and shows how the American movement was built
on the efforts of early farmers’ organizations and on those of immigrants from
countries where cooperatives had thrived. The account of present-day coopera
tives in this country includes a chapteNon the struggle in the farmers’ organiza
tions between the producer and consumer points of view, and one analyzing the
factors of strength and weakness. The latter contains an enlightening account
of the overlapping in the cooperative wholesale movement.
Index of laws pertaining to cooperation. New York, Works Progress Administra
tion for City of New York, 1938. 42 pp., mimeographed. (Literary develop
ment of cooperative principles and data, series A, Pt. I.)
The first of a series of bibliographical studies on the subject of cooperatives,
undertaken as a Works Progress Administration study.
Operations of credit unions in 1987. Washington, U. S. Bureau of Labor Statistics,
1938. 4 pp. (Serial No. R. 832, reprint from October 1938 Monthly Labor
Review.)
Scottish Cooperative Wholesale Society, Ltd., 1868-1936. Glasgow, [1937?]. 80
pp., illus.
Gives the history of the wholesale society, data on its organizational structure,
and description of its productive enterprises and distributive sections. Very few
statistics are included except incidentally in the descriptive accounts.
The Vories experiment. By Willard Price. (In Occupational Psychology,
National Institute of Industrial Psychology, Vol. XII, No. 4, London,
1938, pp. 326-332.)
Account' of a successful cooperative industrial and social organization which
was started in Japan about three decades ago by an American missionary. Some
of the activities carried on are building construction, manufacturing of certain
articles, merchandising of materials which the organization has either manu
factured or imported for sale, and educational work. The emphasis of the
review is on the social non-profit-making phases of the undertaking.
246
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247
Cost and Standards of Living
Standards of living in an Indian-Mexican village and on a reclamation project.
By C. P. Loomis and O. E. Leonard. Washington, U. S. Farm Security
Administration, in cooperation with U. S. Bureau of Agricultural Economics,
1938. 49 pp., charts; mimeographed. (Social Research Report No. XIV.)
Data from this report are published in this issue of the Monthly Labor Review.
Economic and Social Problems
Freedom for wage earners. By Witt Bowden. (In Annals of American Academy
of Political and Social Science, Philadelphia, November 1938, pp. 185-209.)
One of a series of studies of “freedom of inquiry and expression/’ made under
the sponsorship of the Social Science Research Council and published in the
November 1938 Annals of the American Academy. It is held that the essentials
of the liberal method are the processes of inquiry, discussion, democratic decision,
and concerted action for giving effect to decisions; and that the dependent nature
of the employee’s relation to his employer makes collective action by wage
earners a necessary instrument for their effective participation in these processes,
whether in the field of collective agreements or in other fields affecting the general
interest as well as that of wage earners.
Hunger and work—statistical studies. By Jürgen Kuczynski. London, Lawrence
& Wishart, 1938. 132 pp.
The author makes use of B. Seebohm Rowntree’s estimate of family income
necessary in 1936 for “physical efficiency” and of official statistics of wages for
making estimates of the number of wage earners receiving wages below the mini
mum as estimated by Rowntree. The number of adult workers in Great Britain
receiving less than this minimum is es cimated by the author as ¡'about 6,000,000,
while the number of persons dependent on wages below the minimum is given
as about 10,000,000. There are also estimates that indicate a significant decline
in labor’s share in the industrial product from 1931 to 1937.
Labor problems and labor law. By Albion Guilford Taylor. New York, PrenticeHall, Inc., 1938. 663 pp.
Cuba’s three year plan, or social economic reconstruction plan. Habana, Cultural.
^S. A., [1938?]. 59 pp.
This exposition of the “three year plan” for social and economic reconstruction
in Cuba, enunciated in 1937 and approved by the President and a majority in
both Houses of Congress, lists reforms in labor legislation which are recommended
in connection with the plan.
The mobilization of labor reserves in Germany. By Helmut Vollweiler. (In
International Labor Review, International Labor Office, Geneva, October
1938, pp. 447-471; November 1938, pp. 591-613.)
Describes the measures taken to remedy the growing shortage of workers in
Germany, especially in the highly skilled trades and in industries in which the
Four-Year Plan called for increased production.
The Puerto Rican migrant in New York City. By Lawrence R. Chenault. New
York, Columbia University Press, 1938. 190 pp.
A discussion of Puerto Rico as a source of migration to the United States is
followed by a review of the occupations, employment opportunities, housing,
health problems, and social adjustment of Puerto Rican workers and their
families in New York City. A bibliography of material on social and economic
problems of Puerto Rico is appended.
Group Insurance
Improved industrial relations through group insurance. By Thomas I. Parkinson.
(In Manufacturers News, Chicago, November 1938, pp. 18, 20-21.)
The author reviews the development of the group-insurance movement since
1911. He states that in the past 13 years, the only period for which adequate
data are available, “the large group-writing companies have paid claims equiva
lent to 77 percent of premium income and dividends amounting to nearly 7 per
cent of the premiums; the balance consisting of reserves, taxes, and expenses, the
latter figure averaging about 9 percent. It would be difficult to find any type of
public service in which the cost of administration has been so low and the return
so high.”
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248
M o n th l y L a b o r R e v ie w — J a n u a r y 1 9 3 9
H e a lth a n d I n d u s tr ia l H y g ie n e
Disabling sickness among male industrial employees during final quarter of 1937
and entire year. By William M. Gafafer and Elizabeth S. Frazier. Wash
ington, U. S. Public Health Service, 1938. 5 pp., charts. (Reprint No.
1922 from Public Health Reports, April 8, 1938.)
The data cover disabilities of over 1 week’s duration among male members of
industrial sick-benefit organizations in 26 companies. The report shows that
the frequency of cases of sickness and nonindustrial injuries was 99.7 cases per
1,000 men in 1937—the highest annual rate since 1929.
Frequency of sickness and nonindustrial accidents causing disability lasting eight
calendar days or longer among 60,000 white male railroad employees, 1930-3A,
inclusive. By William M. Gafafer. Washington, U. S. Public Health Serv
ice, 1938. 19 pp. (Reprint No. 1924 from Public Health Reports, April 15,
1938.)
Reviewed in this issue.
The relative amount of ill health in rural and urban communities. By Harold F.
Dorn. Washington, U. S. Public Health Service, 1938. 16 pp. (Reprint
No. 1957 from Public Health Reports, July 15, 1938.)
Shows that although mortality rates have decreased more rapidly in urban
than in rural areas since 1900, rural residents still have lower rates than urban
residents in spite of the better medical facilities available to the latter.
The effects of occupation and of its accompanying environment on mortality. By
Percy Stocks, M. D. (In Journal of Royal Statistical Society, Vol. Cl,
Part IV, London, 1938, pp. 669-696.)
In addition to the paper itself, which was read at a meeting of the Royal
Statistical Society on May 17, 1938, there are several pages of discussion.
Medical care in the United States and foreign countries, with special reference to
socialization: Selected list of recent writings. Compiled by Anne L. Baden.
Washington, Library of Congress, Division of Bibliography, 1938. 26 pp.,'
mimeographed. (Supplementing mimeographed list of March 28, 1935.)
Proceedings of special meeting of members of A ir Hygiene Foundation of America,
Inc., November 30, 1937. Pittsburgh, [1938?]. 65 pp.
The committee reports presented include one on recent progress in the medical
field toward further improvement of industrial health, the report of the preventive
engineering committee on engineering progress toward controlling occupational
disease, a résumé of the work of the legal committee during 1937, and a critical
review of workmen’s compensation legislation.
Rapport annuel du Service Médical du Travail [Belgium], 1937. (In Revue du
Travail, Ministère du Travail et de la Prévoyance Sociale, Brussels, October
1938, pp. 1229-1293.)
This annual report of the Belgian industrial medical service contains reports
regarding health hazards found by medical inspectors in various industries, the
results of periodic examinations of workers in especially dangerous industries, and
special studies of hazards in industries handling hides and wool, the airplane
industry, and steel mills. An account is also given of the results of periodic
medical examinations carried out among young workers.
Eighteenth annual report of Industrial Health Research Board, Great Britain,
to June 30, 1938. London, 1938. 62 pp.
Gives a general résumé of the work of the board for a 20-year period, covering
hours of labor, environmental conditions, methods of work, vocational suitability,
and industrial sickness. The report on the work of the current year covers studies
of environmental conditions, physiology and psychology of work, accidents and
vocational aptitudes, and occupational sickness.
Contribution a l’étude toxicologique du benzene. By Pierre Laurian. Lille, France,
Imprimerie L. Danel, 1937. 235 pp., diagrams, illus.
A study of the toxic qualities of benzene including the results of experimental
poisoning in animals.
Silicosis and allied disorders—history and industrial importance. Pittsburgh,
Air Hygiene Foundation of America, Inc., 1937. 178 pp., illus.; bibliography.
Reviews the history of silicosis in foreign countries and the United States and
discusses the pathology of silicosis, tuberculosis, and asbestosis and the diagnosis
and prevention of these diseases.
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R e c e n t P u b lic a tio n s o f L a b o r I n te r e s t
249
Housing
The effect of housing upon population growth. By Warren S. Thompson. (In
Milbank Memorial Fund Quarterly, New York, October 1938, pp. 359-368.)
The writer finds that high rents have a depressing effect upon population growth
among families of sound stock. It is suggested that more attention should be
given to rural or semirural housing for city workers if the birth rate is to be in
creased. The conclusion reached is that a socially sound housing program should
be based on the qualitative and quantitative population needs.
Lei’s look at housing. New York, Citizens’ Housing Council of New York, [1938 ?].
9 pp., illus.
Treats the housing problem in a general way, touching on existing slums and
methods of replacing them.
Housing the industrial worker: Part XIJ, Housing and taxation. By Horace L.
Seymour. (In Canadian Unionist, All-Canadian Congress of Labor, Ottawa,
November 1938, pp. 138, 139.)
Shows the high cost of slums to the taxpayer and the relatively more favorable
tax position where good housing is provided. The first article in this series on
housing the industrial worker appeared in the Canadian Unionist for November
1937.
Home financing. (In Law and Contemporary Problems, Duke University-, School
of Law, Vol. V, No. 4, Durham, N. C., 1938; 148 pp.)
Collection of articles, by different writers, on legislative and other phases of
the subject.
Annual report of State Board of Housing, Massachusetts, for year ending November
30, 1937. Boston, [1938?]. 49 pp., maps, plans, illus. (Public Document
No. 154.)
Includes reports of State and city housing boards and the results of special
housing surveys.
Report on investigation and public hearings on living and housing conditions in
City of New York. New York, New York City Housing Authority, January
25, 1937. 83 pp.
Covers the curtailment of construction, the shortage of low-rent dwellings, and
proposals for improving conditions considered by the New York City Housing
Authority.
Slums of New York. By Harry Manuel Shulman. New York, Albert & Charles
Boni, Inc., 1938. 394 pp.
A study of family and neighborhood life in four slum areas of immigrant settle
ment in New York City in prosperity and depression.
Housing in Philadelphia, 1937. By Bernard J. Newman. (In Housing Quarterly,
Philadelphia Housing Association, November 1938; 34 pp., chart, illus.)
Some footnotes to housing figures [in Great Britain]. By E. H. Y. Kennet. (In
Journal of Royal Statistical Society, Vol. Cl, Part IV, London, 1938, pp.
709-729.)
Gives housing statistics and traces the development of the Government’s
housing program, with particular reference to slum clearance and overcrowding.
Industrial Accidents and Workmen’s Compensation
Industrial accident statistics. Geneva, International Labor Office (American
branch, 734 Jackson Place NW., Washington, D. C.), 1938. 129 pp. (Studies
and Reports, Series N, No. 22.)
In this volume the International Labor Office presents the results of an ex
amination of data on industrial accidents, made with special reference to com
parability. Chapters on the difficulties of international comparisons of accident
risks and on industrial accident rates in principal industrial branches are followed
by an appendix giving the available data on industrial accidents in 33 countries
for the period 1927 to 1936.
Employment and accidents at coke ovens in the United States during 1937. By
W. W. Adams, V. E. Wrenn, and H. L. Sims. Washington, U. S. Bureau
of Mines, 1938. 13 pp.; mimeographed. (Health and Safety Statistics, No.
254.)
Returns for 1937 from the coke-manufacturing industry show a total of 54,444,978 man-hours worked, and 587 injuries resulting in 9 fatalities, and 1 per
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Federal Reserve Bank of St. Louis
250
Monthly Labor Review—January 1939
manent total, 32 permanent partial, and 554 temporary total disabilities. Statis
tics are given by State, by type of oven, and by cause of injury. Frequency rates
for the years 1916-37 show a reduction during the period from 72.35 to 8.54.
E m p lo y m e n t a n d a c c id e n ts a t ir o n - o r e m in e s i n th e U n ite d S ta te s , 1 9 8 6 a n d 1 9 3 7 .
By W. W. Adams, E. E. Getzin, and M. E. Kolhos. Washington, U. S.
Bureau of Mines, 1938. 9 pp.; mimeographed. (Health and Safety Statis
tics, No. 255.)
The report contains accident data by type of mine and cause of injury. During
1937, man-hours worked totaled 45,914,195, and injuries 1,383, as compared
with 34,692,621 man-hours and 868 injuries in 1936—an increase in frequency
rate from 25.9 to 30.8 per million man-hours.
A s t u d y o f e x p lo s iv e s a c c id e n ts r e p o r te d to N a t i o n a l S a f e t y C o m p e titio n fi n m in in g
a n d q u a r r y in g i n d u s tr ie s ] , 1 9 2 5 - 3 5 .
By W. J. Fene. Washington, TJ. S.
Bureau of Mines, 1938.
7038.)
23 pp.; mineographed.
(Information Circular
By D. Harrington.
14 pp.; mimeographed. (In
N e c e s s ity f o r m o r e e x te n d e d u s e o f s a f e ty e q u ip m e n t i n m i n i n g .
Washington, U. S. Bureau of Mines, 1938.
formation Circular 7063.)
S u m m a r y a n d a n a l y s i s o f a c c id e n ts o n s te a m r a i l w a y s i n th e U n ite d S ta te s s u b je c t
to I n te r s ta te C o m m e r c e A c t, c a le n d a r y e a r 1 9 8 7 .
Washington, U. S. Interstate
Commerce Commission, Bureau of Statistics, 1938. 109 pp., charts. (Ac
cident Bulletin No. 106.)
Reviewed in this issue.
O c c u p a tio n a l H a z a r d s a n d S a f e l y , V o lu m e 1, N o . 1.
Cleveland, Ohio, Industrial
Publishing Co., October 1938. 48 pp., illus.
The first issue of a new monthly periodical.
O u r w o r k m e n ’s c o m p e n s a tio n : I , T h e b e n e fits.
Washington, U. S. Division of
Labor Standards, 1938. 24 pp.
W o r k m e n ’s c o m p e n s a tio n i n th e U n ite d S ta te s , a s o f J u l y 1, 1 9 3 8 .
Washington,
U. S. Bureau of Labor Statistics, 1938. 23 pp. (Serial No. R. 815, reprint
from September 1938 Monthly Labor Review.)
C a u s e s o f c o m p e n s a te d a c c id e n ts [ N e w Y o r k S ta te ], f o u r y e a r s , 1 9 3 2 , 1 9 3 3 , 1 9 3 4 ,
and 1985.
Albany, State Department of Labor, Division of Statistics and
Information, 1938. 212 pp., charts. (Special Bulletin No. 196.)
The analysis covers a total of 296,608 industrial injuries, for which final awards
were made in the 4-year period, of which 3,202 were fatal, 479 resulted in perma
nent total disability, 65,953 in permanent partial disability, and 226,974 in tem
porary disability of more than 1 week. The compensation awarded to injured
workers or their dependents totaled $99,964,769, exclusive of administrative and
medical costs.
The greatest number of accidents (36 percent) occurred in connection with
handling objects and using hand tools, but the awards in these cases amounted to
only 21 percent of the total compensation cost. Falls of workers caused the
second largest number of compensated injuries (22 percent), but these cases
ranked highest in total compensation cost (29 percent). Mechanical apparatus
was the third cause in numerical rank (12 percent), but fourth in compensation
cost (15 percent). Vehicles ranked as fourth cause in number of injuries (9 per
cent) but third in compensation cost (16 percent).
P r o c e e d in g s o f C a s u a lty A c tu a r i a l S o c ie ty , M a y 2 0 , 1 9 8 8 .
New York, 1938. 267
pp.
Papers presented at the conference included: “Special funds under the New
York Workmen’s Compensation Law,” by Grady H. Hipp; “Graduation of an
American remarriage table for joint life annuities,” by Edward Olifiers; and
“The retrospective rating plan for workmen’s compensation risks,” by Sydney
D. Pinney.
R e p o r t f o r 1 9 3 7 o f O n ta r io W o r k m e n ’s C o m p e n s a tio n B o a r d .
Toronto, 1938. 71
pp.
During 1937, a total of 70,582 industrial injuries were reported to the board.
Either compensation or medical aid, amounting to $6,129,961, was awarded in
66,368 cases. This sum does not include medical aid furnished by railroad,
navigation, express, telegraph, and telephone companies, or municipal corpora-
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R e c e n t P u b lic a tio n s o f L a b o r I n te r e s t
tions, nor in Dominion and Provincial Crown cases. The administrative expense
of the board, paid out of funds collected from employers, was 4.52 percent of
receipts.
Industrial Relations
R e p o r t o f C o m m is s io n o n I n d u s t r i a l R e la tio n s i n G r e a t B r i t a i n .
U. S. Department of Labor, 1938.
Washington,
146 pp.
Sw eden.
Washington, U. S.
Department of Labor, 1938. 77 pp.
The findings of the Commission as regards both Great Britain and Sweden were
summarized in an article in the October 1938 Monthly Labor Review.
S w e d e n , th e m id d le w a y .
By Marquis W. Childs. New Haven, Yale University
Press, 1938. 184 pp.
Revised edition of the earlier book by the same title, giving later information
and containing a chapter designed to modify the impression given by the earlier
study that Sweden is a Utopia.
T h is i s d e m o c r a c y : C o lle c tiv e b a r g a in in g i n S c a n d i n a v i a .
By Marquis W. Childs.
New Haven, Yale University Press, 1938. xvii, 169 pp., illus.
Describes the development of organization among the workers and the employ
ers; the process of collective bargaining; the attitudes and accomplishments of
labor governments; relations between farmers and industrial workers; the adulteducation system of the labor organizations; the “company towns” in which there
is no attempt to control workers by threat of eviction and other measures within
the power of the employing company, and in which most of the workers are
unionized; and the relation between the workers and the cooperatives. Two
chapters deal, respectively, with unions of white-collar workers and unions of
domestic servants.
R e p o r t o f C o m m is s io n o n I n d u s t r i a l R e la tio n s i n
A m u n i c i p a l la b o r r e la tio n s b o a r d f o r C in c in n a ti; a b r ie f a c c o u n t o f e x p e r ie n c e i n o th e r
c itie s a n d a r e c o m m e n d e d p la n .
Cincinnati, Cincinnati Bureau of Govern
mental Research, Inc., 1938. 38 pp. (Report No. 78.)
Brief account of the experience of municipal mediation agencies in Toledo,
Ohio, Newark and Paterson, N. J., Philadelphia, Minneapolis, and New York
City and New York State.
E c o n o m ic e n q u ir ie s a s a b a s is f o r d e m o c r a tic a d ju s tm e n t o f la b o r d i s p u t e s .
By
J0rgen S. Dich. (In International Labor Review, Geneva, November 1938,
pp. 575-590.)
T h e r ô le o f g r ie v a n c e m a c h in e r y i n u n io n - m a n a g e m e n t r e la tio n s .
By Ira B. Cross,
Jr. (In Harvard Business Review, Vol. XVII, No. 1, New York, 1938, pp.
105-116.)
Short study of the structure and functioning of grievance machinery, based on
field investigations of plants in the Boston area. It discusses the advantages and
disadvantages in the different methods of selecting shop stewards, as well as the
procedures followed in taking up and making decisions with regard to individual
grievances.
Labor and Social Legislation
R e p o r ts o f c o m m itte e s a n d r e s o lu tio n s a d o p te d b y F if th N a tio n a l C o n fe re n c e o n L a b o r
L e g is la tio n , N o v e m b e r l j - 1 6 , 1 9 8 8 .
Washington, U. S. Division of Labor
Standards, 1938.
34 pp. (Bulletin 25-A.)
Washington, U. S. Bureau of Labor Statistics, 1938.
(Serial No. R. 826, reprint from October 1938 Monthly Labor
S t a t e la b o r l e g i s l a t i o n , 1 9 3 8 .
10 pp.
Review.)
Chicago,
Council of State Governments, 1938. 15 pp.; mimeographed.
L e g is la tio n , 1 9 8 0 -1 9 3 8 , B r a z il.
[Rio de Janeiro?], Ministry of Labor, Industry,
and Commerce, 1938. 121 pp. (In Portuguese.)
Historical account of the development of the existing body of social and labor
legislation in Brazil, with a classified index to all legislation now effective in the
fields of labor, industry, commerce, social welfare, and statistics.
S u r v e y o f p r e s e n t s ta tu s o f p r o b le m o f tr a n s ie n t a n d S ta te s e ttle m e n t la w s .
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
252
Monthly Labor Review—January 1939
Labor Organization
U n io n .
By Boris Stern. (In Labor Informa
tion Bulletin, U. S. Bureau of Labor Statistics, Washington, November 1938,
PP- 4-7.)
T h e I n te r n a tio n a l T y p o g r a p h ic a l
A n o u t l i n e o f t r a d e u n i o n h i s t o r y i n G r e a t B r i t a i n , th e U n i t e d S t a t e s , a n d C a n a d a ,
w i t h s p e c i a l e m p h a s i s o n c a u s e s l e a d i n g to p r e s e n t d i v i s i o n i n C a n a d i a n l a b o r
m o v e m e n t.
By Margaret Mackintosh. Ottawa, Department of Labor, 1938.
30 pp.; mimeographed.
R e p o r t o f p r o c e e d in g s a t 7 0 th a n n u a l T r a d e s U n io n C o n g r e s s, B la c k p o o l [E n g la n d ],
S e p te m b e r 5 - 9 , 1 9 3 8 .
London, Trades Union Congress, 1938. 512 pp.
In addition to the proceedings of the meeting, the volume contains statistics of
union membership and reports on important questions such as industrial disputes
and unemployment.
F o r ty -fo u r th a n n u a l r e p o r t o f I r is h T r a d e U n io n C o n g re ss.
Dublin, National
Executive of Irish Trade Union Congress, 1938. 174 pp.
Includes the report of the executive officers for 1937—38 and the proceedings
of the annual meeting.
Occupations
Washington, U. _S.
Employment Service, Division of Standards and Research, 1938. xxxix,
344 pp., illus.
J o b d e s c r ip tio n s f o r c le a n in g , d y e in g , a n d p r e s s in g in d u s tr y .
An
o c c u p a tio n a l s tu d y
o f th e f r u i t a n d
v e g e ta b le c a n n i n g i n d u s t r y i n
C a lifo r n ia .
By Edward G. Stoy and Frances W. Strong. San Francisco, National
Youth Administration of California, 1938. 41 pp., illus.
R a d i o s e r v ic e a n d r e la te d o c c u p a tio n s .
Louisville, National Youth Administration
for Kentucky, 1938. 37 pp.
Other occupational studies issued by the Kentucky office included the following:
The beautician and barber; The professional salesman; Clerical occupations;
Occupations in air conditioning; Occupations in the baking industry; The tobacco
industry in Louisville and Kentucky; Sales persons.
F o r e c a s tin g
o c c u p a tio n a l
n e e d s — d is c o v e r in g
c o m m u n ity
p la c e m e n t
o p p o r tu n itie s .
By Lorin A. Thompson, Jr. (In Occupations— The Vocational Guidance
Magazine, New York, October 1938, pp. 22-27.)
Contains suggestions and recommendations for the adjustment of curricula to
future occupational requirements. Also presents additional proof of the in
effectiveness of occupational guidance and training efforts without definite data
on placement opportunities with particular reference to future demands for
skilled workers.
Y o u r v o c a tio n — in tr o d u c tio n .
Prepared on an N. Y. A. work project. Louisville,
National Youth Administration for Kentucky, 1937._ 35 pp.
This introductory brochure has been followed by a series of occupational sum
maries dealing with a number of occupations which have been reported on in
greater detail in other publications of the same office.
Old-Age Pensions
Washington, U. S. Social Security Board,
8 pp.; mimeographed.
W a g e s a n d e m p lo y m e n t u n d e r o ld a g e in s u r a n c e p r o g r a m .
By John .1. Corson.
(In Social Security Bulletin, U. S. Social Security Board, Washington,
September 1938, pp. 20-24.)
L i s t o f r e f e r e n c e s o n o ld -a g e a s s is ta n c e .
Library, September 1938.
Sickness Lnsurance
M u t u a l b e n e f it a s s o c i a t i o n s .
New York, National
Industrial Conference Board, 1938. 34 pp. (Studies in Personnel Policy No. 9.)
The study was made in the spring of 1938, and covers the plans of 279 mutualbenefit associations. It was found that neither recent social-security legislation
nor union agitation has greatly influenced the present status of these associations.
H e a lth
in s u r a n c e
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
p la n s :
A,
Recent Publications of Labor Interest
253
By John A. Kingsbury. New York, League for
Industrial Democracy, 1938. 39 pp.; bibliography.
Outlines the principles which the author believes should be followed in estab
lishing a health insurance system in the United States.
H e a lth in s u r a n c e w ith m e d ic a l c a r e : T h e B r i t i s h e x p e r ie n c e .
By Douglass W. Orr,
M. D., and Jean W. Orr. New York, Macmillan Co., 1938. 271 pp.
Report on a first-hand study of the British health-insurance system, including
interviews with officials, physicians, and insured persons, as well as a question
naire study for the purpose of showing in what way the British experience can
contribute to the understanding of both principles and methods of national
health insurance in this country.
H e a lth s e c u r ity f o r th e N a t i o n .
(
)
Social Security General
T h e a p p l i c a t i o n o f s o c ia l in s u r a n c e i n B u lg a r ia .
(In International Labor Review,
Geneva, November 1938, pp. 667-676.)
By Carlos Maldonado
Boggiano. Santiago, Caja de Seguro Obligatorio, 1938. 37 pp., charts.
Report on the medico-social activities carried on in Chile by the Compulsory
Insurance Fund, as presented to the Tenth Pan-American Sanitary Conference
by the director of the medical services of that fund. A brief general account is
given of social insurance in Chile. Vital statistics, general social benefits, protec
tion to mother and child, the campaign against tuberculosis, and protection of
workers through medical examinations, are discussed, with statistics through
June 1938.
E l s e g u r o s o c ia l e n C h ile e n s u a s p e c to m e d ic o s a n ita r io .
14a
m e m o r ia a n u a l c o r r e s p o n d ie n te a l e je r c ic io f in a n c ie r o [C h ile ], j u l i o
ju n io 1938.
Santiago de Chile, Caja de Seguro Obligatorio, 1938.
1987-
63 pp.,
charts.
Fourteenth annual report of Compulsory Insurance Bank of Chile, July 1937
to June 1938, showing medical services rendered to various groups, financial ad
ministration of the Bank, and social welfare work carried on by the use of the
Bank’s funds.
Technological Changes
i n te c h n o lo g y a n d la b o r r e q u ir e m e n ts i n c r o p p r o d u c tio n : C o tto n .
By
William C. Holley and Lloyd E. Arnold. Washington, U. S. Works Progress
Administration, 1938. xvi, 132 pp., maps, charts, illus. (National Re
search Project, Studies of Changing Techniques and Employment in Agri
culture, Report No. A-7.)
Reviewed in this issue.
M i n e r a l te c h n o lo g y a n d o u tp u t p e r m a n s tu d ie s : G r a d e o f o re .
By Andrew V. Corry
and O. E. Kiessling. Washington, U. S. Works Progress Administration,
1938. xv, 114 pp., charts. (National Research Project, Mineral Technology
and Output per Man Studies, Report No. E-6.)
Reviewed in this issue.
C hanges
Textile Industry
M a n a g e m e n t o f a te x tile b u s in e s s : A s t u d y o f th e o p e r a tio n o f a n i n d i v i d u a l e n te r p r is e .
By C. Canby Balderston and Victor S. Karabasz. Washington, Textile
Foundation, 1938. 210 pp.
The subject of one section is the control of labor and of labor costs.
T h e m a r k e tin g o f te x tile s .
By Reavis Cox. Washington, Textile Foundation,
1938. 367 pp.
Part VI covers price problems and policies of the textile industry.
T e x tile c o s tin g — a n a i d to m a n a g e m e n t.
By Jeremiah Lockwood and Arthur D.
Maxwell. Washington, Textile Foundation, 1938. 282 pp.
Part of the book is devoted to basic principles of material, labor, and overhead
costs.
S eco n d a n n u a l re p o rt o f S p in d le s B o a r d , G reat B r ita in .
London, 1938. 10 pp.
(Cmd. 5873.)
Summary of operations under Cotton Spinning Industry Act, 1936. This legis
lation was designed to reduce the number of surplus spindles.
115 6 52 — 39------ 17
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Federal Reserve Bank of St. Louis
254
Monthly Labor Review—January 1939
Unemployment Insurance and Relief
w o rk e r s a n d u n e m p lo y m e n t c o m p e n s a tio n .
By Ida Craven Merriam.
(In Social Security Bulletin, U. S. Social Security Board, Washington, Sep
tember 1938, pp. 8-15.)
S eason al
S e a s o n a l i t y i n O h io c a n n i n g e s t a b l i s h m e n t s i n r e l a t i o n to u n e m p l o y m e n t c o m p e n s a t i o n .
By William Papier. (In Social Security Bulletin, U. S. Social Security
Board, Washington, October 1938, pp. 6-10.)
U n e m p lo y m e n t c o m p e n s a tio n in t e r p r e ta tio n s e r v ic e : B e n e f it
E m p i r e ; a c o d i f i c a t i o n a n d te x t o f s e l e c t e d d e c i s i o n s .
Social Security Board, June 1, 1938.
Supplement No. 1.)
867 pp.
d e c is io n s
of
B r itis h
Washington, U. S.
(Benefit Series, General
R e p o r t o f S e c r e ta r y o f L a b o r , N e w Z e a la n d , u p o n a c tiv itie s a n d p r o c e e d in g s u n d e r
E m p lo y m e n t P r o m o tio n A c t, 1 9 3 6 .
Wellington, Department of Labor, Em
ployment Division, 1938.
38 pp., maps.
By James W. Hook. New Haven,
Conn., Tuttle, Morehouse & Taylor Co., 1938. 39 pp.
Two addresses on the problem of unemployment— one covering the obligation
of industry to the unemployed and the other a plan for taking care of unemployed
persons who are able and willing to work.
I n d u s t r y ’s
o b lig a tio n
to
th e
u n e m p lo y e d .
Wages and Hours of Labor
c o tto n -g o o d s m a n u f a c tu r in g .
By A. F. Hinrichs. Washington, U. S.
Bureau of Labor Statistics, 1938. 154 pp., charts. (Bulletin No. 663.)
Summary data from this study were published in the December 1938 Monthly
Labor Review.
E a r n i n g s a n d h o u r s i n f i r e w o r k s i n d u s t r y , O c to b e r 1 9 3 7 .
Washington, U. S.
Bureau of Labor Statistics, 1938. 14 pp. (Serial No. R. 821, reprint from
April 1938 Monthly Labor Review.)
R a ilr o a d s a n d r a ilr o a d w a g es, 1 9 3 8 .
Washington, Bureau of Information of the
Southeastern Railways, 1938. 16 pp., charts.
T h e w a g e s o f r a i l r o a d la b o r , 1 9 3 8 .
Washington, Railway Labor Executives’
Association, 1938. 28 pp., charts.
M e r c h a n t m a r in e s ta tis tic s , f is c a l y e a r 1 9 3 7 .
Washington, U. S. Bureau of Marine
Inspection and Navigation, 1938. 90 pp. (Report Series, No. 3.)
The statistics presented include average monthly wages of seamen on American
merchant vessels of 500 gross tons and over, 1920-37, and on steam and motor
cargo vessels of 5,000 gross tons and over, 1935-37.
W a g es in
R e p o r t o f p r o c e e d in g s u n d e r A g r ic u ltu r a l W a g e s
1 9 3 4 , f o r y e a r e n d e d S e p te m b e r 3 0 , 1 9 3 7 .
(R e g u l a t i o n )
A c t [G rea t B r ita in ] ,
London, Ministry of Agriculture
and Fisheries, 1938. 61 pp.
Covers activities on behalf of agricultural labor under the Wage Regulation
Act and gives information on wages and hours.
W a g e p o l i c y i n r e l a t i o n to i n d u s t r i a l f l u c t u a t i o n s .
By A. G. Pool. London,
Macmillan & Co., Ltd., 1938. xiii, 305 pp., charts.
In Part I the author analyzes the theory of adjustment of wage rates to indus
trial fluctuations. He compares depressed industries and prosperous industries
and holds that the maintenance of employment calls for the transfer of workers
from depressed to prosperous industries. Reductions of wages in depressed in
dustries will not bring about such transfers. Part II deals with methods of
adjusting wages for the purpose of increasing the flexibility of wage rates. Inci
dental attention is given to the bearing of wages, as income for consumption, on
demand for goods and on employment of workers. The author deals primarily
w ith British experience and problems.
H o u r s o f w o rk in A m e r ic a n in d u s tr y .
By Leo Wolman. New York, National
Bureau of Economic Research, 1938. 20 pp., charts. (Bulletin 71.)
A study of full-time or normal hours per week in manufacturing, building trades,
and coal mining, and on the railroads. Some of the figures go back to 1890.
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Federal Reserve Bank of St. Louis
Recent Publications of Labor Interest
255
Wholesale Prices
By Arthur Harrison
Cole. Cambridge, Mass., Harvard University Press, 1938. 2 vols.; 187
and 359 pp.
N ú m e r o s in d ic e s d e p r e c io s a l p o r m a y o r en V e n e z u e la , 1 9 1 3 - 1 9 3 7 .
Caracas,
Ministerio de Fomento, Dirección de Estadística, [1938?]. 129 pp., charts.
Wholesale prices and indexes thereof for 49 commodities, by month, from 1913
through 1937.
W h o l e s a l e c o m m o d i t y 'p r ic e s i n th e U n i t e d S t a t e s , 1 7 0 0 - 1 8 6 1 .
General Reports
Washington, U. S. Works Progress Admin
istration, 1938. 291 pp.
Annotated list of research projects conducted under the auspices of the U. S.
Civil Works Administration, the U. S. Works Progress Administration, and State
emergency relief administrations, classified under the following general heads:
Natural resources; planning; science and technology; anthropology; history;
art, literature, and philosophy; economics; governmental research; social research;
and education. There is a detailed subject index to the volume.
I n d e x o f re s e a rc h p r o je c ts , V o lu m e 1 .
H a n d b o o k o f L a t i n A m e r i c a n s t u d i e s : A s e l e c t i v e g u i d e to th e m a t e r i a l p u b l i s h e d i n
1 9 3 7 o n a n th r o p o lo g y , a r t, e c o n o m ic s , e d u c a tio n , fo lk lo r e , g e o g r a p h y , g o v e r n m e n t,
h i s t o r y , i n t e r n a t i o n a l r e l a t i o n s , l a w , la n g u a g e , a n d l i t e r a t u r e .
Edited by
Lewis Hanke.
Cambridge, Mass., Harvard University Press, 1938. 156 pp.
Prepared by Labor Research Association. New
York, International Publishers, 1938. 223 pp.
The data are presented under the following heads: From recovery to crisis;
labor and progressive political movements; legislation; labor and social conditions;
farmers and farm workers; the struggle for civil rights; trade-union trends; labor
abroad; war begins.
L abor fa c t book,
V o lu m e I V .
S t a t i s t i c a l r e p o r t o n p r ic e s , w a g e r a te s a n d h o u rs o f la b o r , u n e m p l o y m e n t, i n d u s
t r i a l a c c i d e n t s , e tc . [ i n N e w Z e a l a n d ] , f o r th e y e a r 1 9 3 6 .
Wellington, Census
and Statistics Department, 1938.
xxxviii, 123 pp.
S ta t is tic a l s u r v e y , G e n e ra l F e d e r a tio n o f J e w is h L a b o r i n
E r e tz -I s r a e l {P a le s tin e ).
Tel Aviv, Palestine, 1938. Various paging.
Presents data for Palestine on labor organization, employment and unemploy
ment, wages, industrial accidents, industrial disputes, Jewish population, immigra
tion, and age distribution of Jewish workers. The statistics are mainly for the
year 1937, although in some cases figures are given for January or March 1938.
S ín te s is e s ta d ís tic a d e la R e p ú b lic a O r ie n ta l d e l U r u g u a y .
Montevideo, Dirección
General de Estadística, 1938. 165 pp., charts. (Publication 153, No. 16.)
A section on social welfare and labor contains figures, mainly through 1937, on
old-age pensions in force, Government loans, family budgets, operation of
people’s restaurants administered by the Government, strikes and lock-outs, and
industrial accidents.
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Federal Reserve Bank of St. Louis
U. S. GOVERNMENT PRINTING OFFICE: 1939
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
@FedFRASER