View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

MONTHLY

LABOR
R E YIE \Y
MARCH 1938

VOL. 46, NO. 3

HUGH S. HANNA, Editor
18 0 S if® ¡ l o p ^ Y

t M l i u LiüiW'iiiiiiä l

CONTENTS

APR 111933

Cover.

■HPargw-

Castle Garden—Principal immigrant landing place, 1855-1892.

Special articles:
Living costs of working women in New York________________
Industrial injuries and the business cycle____________________
Power farming and labor displacement in the Cotton Belt, 1937.
Consumption habits of the American people-________________

571
579
595
608

Social security:
Sickness and maternity insurance in France_________________
Extension of unemployment insurance in Great Britain_______

622
637

Industrial and labor conditions:
Minimum wage for sugar-beet labor, 1937-__________________
Multiple-shift plant operation_____________________________
Part-time farming in the Southeast_________________________
Foreign workers in Germany_____ _________________________

638
639
641
645

Cooperation:
Cooperative burial associations, 1936_______________________

647

Education and training:
Training school for household employees____________________
Development of American Indian arts and crafts_____________
Training projects for unemployed youth in Canada___________

653
655
658

Older workers in industry:
Men over 40 in executive positions_________________________
Maximum hiring ages in Canadian industry__________________

661
662

Industrial hygiene:
National health survey, 1935-36___________________________
Health of insured wage earners, 1 9 3 7 --,---__ - - - - - - - ________
46585—38----- 1


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

664
671
I

Contents

II

Industrial accidents:
Injury experience in 30 manufacturing industries, 1935 and 1936-----

Page
675

Industrial relations:
Collective bargaining on the New York City transit lines, 1937_____
Labor espionage: Summary of Senate inquiry------------------------------Settlement of railway disputes in 1936-37_______________________
Right of Labor Relations Board to conduct hearings______________
Collective agreement in British chain grocery stores_______________
Collective agreement in newspaper printing in Sweden____________

686
693
698
702
705
706

Housing:
Federal housing legislation of 1938_________________________
Housing needs in the United States-------------------------------------------Alley clearance in the District of Columbia, 1937--------------------------

707
709
711

Industrial disputes:
Trend of strikes______________________________________________
Analysis of strikes in November 1937___________________________
Conciliation work of the Department of Labor, January 1938______

714
715
723

Labor statistics:
Activities of the Central Statistical Board, 1936-37-----------------------

725

Cost of living:
Changes in cost of living in the United States, December 1937_____
Cost of living in foreign countries_______________________________

727
738

Labor turn-over:
Labor turn-over in manufacturing, December 1937________________

741

Wages and hours of labor:
Union scales of wages and hours of motortruck drivers, May 15, 1937_
Salaries paid by California municipalities, 1937___________________
College salaries, 1935-36______________________________________
Farm wage and labor situation, January 1, 1938__________________
Wages in cotton picking, 1937_________________________________
Netherlands—Wages and working conditions of harbor workers at
Rotterdam, 1937___________________________________________

745
752
753
754
755
756

Employment offices:
Activities of United States Employment Service, January 1938____

758

Trend of employment and pay rolls:
Summary of reports for January 1938___________________________
Industrial and business employment________________________
Public employment_______________________________________
Detailed reports for industrial and business employment, December
1937______________________________________________________

766
766
770
773

Building operations:
Summary of building construction in principal cities, January 1938__

782

Retail prices:
Food prices in January 1938___________________________________
Coal prices in December 1937__________________________________

786
796

Wholesale prices:
Wholesale prices in January 1938_______________________________

Recent publications of labor interest_______________________________


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

799
807

This Issue in B rief

Working Woman’s Budget.
The construction of an adequate
budget for working women in New
York, to be used in the determination
of minimum wage rates, is described
in an article on page 571. Standards
of the goods and services th at would
be necessary to fulfill the statutory
obligation of the minimum wage to
provide adequate maintenance and to
protect health were first established.
The prices th at would have to be paid
in the cities and towns of New York
State for all the items entering into
this acceptable standard of living
were then ascertained. For the State
as a whole, the annual cost of living
according to the standards accepted
as adequate was found to be $1,192
for a woman worker living alone, and
$1,058 for one living as a member of a
family.
Accidents and the Business Cycle.
The frequency rate of disabling in­
dustrial accidents, i. e., number of
disabling accidents per million hours
worked, moved in general conformity
with the trend of employment during
the period 1929-35, in spite of the fact
that the frequency rate has no par­
ticular relation to the number of
persons employed. There also was a
close direct relationship between the
percentage of disabilities not exceeding
7 days and the employment index,
which can be explained primarily as
the result of the incomplete reporting
of such injuries by workers during
depression years. The factors which
explain the relationship arise out of
economic changes due to the business
cycle. The survey on which these
conclusions are based covered 29
manufacturing industries and 426,000
disabling injuries. Page 579.


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

Effect of Power Farming on Labor.
Recent developments in the Cotton
Belt indicate that methods of farming
in that region are undergoing a process
of transformation th at is likely to
result in profound changes in the in­
dustrial and social conditions of the
people whose lives have heretofore
depended almost wholly upon the
production of cotton. It seems en­
tirely likely that within the next few
decades the old systems of cropper and
tenant farming will entirely disappear,
giving place to large industrialized
farms operated by hired workers most
of whom will not live on the land.
Thus far, these changes are not due to
the introduction of any one outstand­
ing invention, such as the much
talked of cotton picker, but to an
acceleration of the process of farm
mechanization in general, in which the
increased use of the farm tractor,
especially the all-purpose pneumatictired type, is the most important
factor. Page 595.
Consumption Habits of the American
People.
The Bureau of Labor Statistics is
bringing to a conclusion two major
studies of consumption, a study of the
money disbursements of wage earners
and lower-salaried clerical workers in
55 cities, begun in the fall of 1934, for
the purpose of revising and extending
its indexes of the cost of goods pur­
chased by this group, and an investi­
gation of broader scope, undertaken in
the winter of 1935-36, covering the
consumer purchases of families of all
income and occupational groups in 32
cities. The subject matter covered by
the two studies is identical, but the
groups covered and the methods of
sampling and of analysis are different.

in

IV

This Issue in Brief

Figures on the incomes of native
white families including husband and
wife show th at among those not having
been on relief at any time during the
year covered by the schedule, the me­
dian income varies from approximately
$1,200 in Gastonia, N. C., to slightly
over $2,000 in New York City. Me­
dian incomes for the Negro families
including husband and wife and not
having received relief at any time
during the year vary from $460 in
Albany, Ga., to $1,350 in New York
City. Page 608.
Burial Cooperatives.
Although the first known coopera­
tive burial association was started as
early as 1915, cooperative activity in
this line is found in only the five States
of Illinois, Iowa, Minnesota, Nebraska,
and South Dakota. As a large mem­
bership is necessary in this type of as­
sociation, the present tendency is to­
ward larger and larger units. The
newest associations are those serving
a number of local cooperative store
associations throughout a whole dis­
trict—representing a combined mem­
bership of 5,500-6,000 persons. The
1936 activities of these associations
are described on page 647.
Union Wage Rates of Motortruck
Drivers.
The average wage rate of union mo­
tortruck drivers increased 6.6 percent
between May 15, 1936, and May 15,
1937. The average hourly rate in 1937
was 76.7 cents; in 1936 it was 71.9
cents. More than half the members
had rates of between 60 and 80 cents
per hour in both years. The average
full-time hours per week were 48.2
in 1936 and 47.8 in 1937. Almost
two-thirds of the members had scales
of 48 hours per week in both years.
Further information on union scales
of wages and hours of motortruck


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

drivers in 60 cities will be found on
page 745.
Collective Bargaining on New York
City Transit Lines.
During 1937 collective bargaining
was generally established for the first
time in the New York City passenger
transportation industry. With the
signing of 11 contracts before the close
of the year, the Transport Workers
Union has been recognized as the sole
bargaining agent for the workers in
the major surface transit lines, for
most of the taxicab drivers, and for
elevated and underground transpor­
tation with the exception of the cityowned Independent Subway System.
Average weekly wages of bus opera­
tors increased $3 after the signing of
contracts. A flat 10 percent increase
was provided in the subway contracts.
Page 686.
National Health Survey.
Approximately 6 million persons
are ill and unable to work, to attend
school, or pursue other usual activities
each day during the winter months,
according to an estimate by the
United States Public Health Service
based on a national health survey
covering 740,000 families in urban
communities and 36,000 families in
selected rural areas. The study shows
the frequency and severity of various
illnesses in the different age groups and
according to economic status. The
relation between poverty and sickness
is shown by the fact that disabling
illness lasting 1 week or longer occurred
at a rate 57 percent higher among
families on relief than among families
with annual incomes of $3,000 or over.
Relief and low-income families not only
experience more frequent illness during
a year than the higher income groups
but their illnesses are on an average
of longer duration. Page 664.

MONTHLY LABOR REVIEW
FOR MARCH 1938

LIVING COSTS OF WORKING WOMEN IN NEW YORK
By F rieda S. M iller, New York State Department of Labor

IN THE spring of 1937 the Legislature of the State of New York
passed a new minimum-wage law based on the declared public policy
that “women and minors employed in any occupation should receive
wages sufficient to provide adequate maintenance and to protect
their health.” The act provides that wage boards, in establishing
minimum wages, may take into account (1) the amount sufficient to
provide adequate maintenance and to protect health, (2) the value
of the service or class of service rendered, and (3) wages paid in the
State for work of like or comparable character.
In its reference to adequate maintenance the law differs from earlier
attempts to establish minimum wages for women and minors in New
York State. Since the Department of Labor had the responsibility
of setting the law in motion, the first step necessary was to make an
exhaustive study of living standards of wage-earning women, so that
wage boards could be furnished with data as to what constitutes
adequate maintenance and the protection of health under conditions
prevailing in New York State today, from as careful, extensive, and
objective a study of the information available as that on which the
reports to wage boards on wages and working conditions in the indus­
tries are based.
Two separate steps had to be taken before the statement of public
policy in the act, “that women and minors employed in any occupa­
tion should receive wages sufficient to provide adequate maintenance
and to protect their health,” could be translated into specific informa­
tion for wage-board use. First, there had to be determined as exactly
as possible a list of the goods and services which should represent
what was meant by adequate maintenance. Second, the price that
would have to be paid for all of these items in the towns and cities of
New York State had to be ascertained.
But before beginning to list the goods (the clothing, food, drugs,
etc.) and the services (dry cleaning, movies, medical services, etc.)
which make up this standard, one fundamental decision was made.
This budget should not be a charity budget. It should not be a
mere carry-over. It should not count on the philanthropic agencies


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

571

572

Monthly Labor Review—March 1938

of the communities to piece out the health care, the recreation, and
the housing needed but not provided by it. The preamble of the law
definitely characterizes as “a serious form of unfair competition against
other employers and employees” wages which have to be “supple­
mented by the payment of public moneys for relief or other public
assistance.” Consequently, the items in the budget must provide
adequately for the woman who is to live on it. The clothing budget
must give her, currently and continuously, an adequate wardrobe.
The food budget must be not merely a “tide-over” until better days
may come, but such as would keep her in health were she to follow it
all her days. In short, complete self-support must be possible under
its terms.
In addition, the items that go into the budget must take cognizance
of the time and place for which it is prepared. Housing adequate
for the tropics will not be adequate for New York State; neither will
the housing of 1776 do for today. Electric light and modern plumb­
ing must be included for the working women of New York’s 1930’s,
not alone because her self-respect requires that she be not invidiously
distinguished from her peers, but because community health and
safety require certain minimum housing standards for metropolitan
areas, which may not be disregarded in the budget. When it comes
to food, there are, of course, certain standards laid down by the
nutritionists which furnish definite guidance, though community
food habits also influence the items to be included. The clothing pro­
vided fails to serve the working woman’s need if it merely covers her
and keeps her warm. Therefore, the items in an adequate minimum
budget must make provision for appearance which will permit the
worker to compete for and hold her job. Similarly, every other
category of the budget must be set up and judged in terms of presentday needs. Thus the budget becomes a “standard” of adequacy.
Goods and Services Included
However, none of these preliminary decisions determine what
goods and services will actually establish a minimum adequate
standard. To do that is obviously an undertaking of such scope as
to require the expert assistance of authorities in at least half a dozen
fields. What is adequate minimum housing, for example, is certainly
best known to persons who have been actively engaged in promoting
proper housing, especially with reference to the residents of New York
State today. In the same way, what is an adequate minimum food
allowance is best known to persons who have been working on prob­
lems of nutrition. In these and other budgetary fields, the actual
purchases and use habits of the communities and the groups in these
communities for which the standard is set up must also be taken into
consideration.

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

Living Costs of Working Women

573

Therefore, the construction of the standard budget was planned
and conducted, from the very beginning, in conjunction with practi­
tioners and experts in the various fields. Work was begun by con­
sulting all published material, such as budgets of other agencies and
studies of consumer expenditures where these related to women in the
lower income groups. Among the latter was the study of expendi­
tures of wage earners’ families made by the United States Bureau of
Labor Statistics in 1934, covering several cities in New York State.
Always, however, it was clearly understood that family budgets or
expenditures and relief budgets could not be followed since this
survey was concerned with the cost of living of the self-suvvortina
woman.
The other source of information and guidance in the development
of the standard has been the general advice and criticism of each
specific section of the budget by men, women, and organizations in
New York State, active and respected as leaders in their various
fields. For example, the standards for the kind of housing which
was to pass muster in the pricing of actual family quarters and fur­
nished rooms were submitted to a number of individual authorities
in the field and to interested organizations.
Although only a simple list of goods and services find a place in
this standard, it is at the same time essential that the standard be
protected against erroneous interpretation. For example, the figure
published is an annual figure because that is the only basis on which
an adequate standard can be maintained. It is true that one fiftysecond of that figure is what it takes to live per week; but with incomes
in most women-employing industries highly restricted by the seasonal
nature of the work, the comparison between a weekly pay envelope
for a busy week and the expenses for one fifty-second of a year would
give no indication of a worker’s ability to maintain decent living
standards.
In drawing up the commodity-quantity budget for woman wage
earners, the department found it imperative to distinguish between
the expenses of those who live as members of families and those who
live alone. The principal differences occur in the housing and food
items; the self-supporting woman living as a member of the family
pays her proportionate share of the rent of the family dwelling and
the cost of food, whereas the woman living alone pays for food and
shelter in the form of meals in restaurants and a furnished room.
Description of Standards
The standards used for each section of the budget are described
briefly below:
Food. The standards accepted for the nutrition needs of working
women represent a mean between a minimum-cost diet which requires

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

574

Monthly Labor Review—March 1938

the most careful buying and avoidance of any waste if it is to furnish
adequate nutrition, and a moderate-cost diet more nearly available to
the average girl. The food requirements were established on the basis
of the needs of an average worker, since it is obviously impossible to
prepare a diet that will apply equally well to all members of a group.
Generally accepted nutritive standards were used to determine vari­
eties of food required and the approximate quantities.
The food budget is intended to be a general budget, representative
of the usual requirements of employed women in New York State
covered by the minimum-wage law and does not pretend to meet the
varying needs and tastes of any individual woman. The cost of food
for the woman living as a member of a family was based on the cost
of raw food consumed at home plus the cost of lunches out on 5 days
a week. The cost of food for the woman living alone, on the other
hand, was based on the cost of three adequate meals per day in
restaurants.
Other home expenses for woman living as member of fam ily. —(1)
Housing (rent including cost of heat and hot water and light, cooking
fuel, and refrigeration): In collecting the rent data for wage earners’
housing in each community the following standards were used as a
guide:
The house should not be located in a neighborhood which is generally known
to have a bad reputation.
The house should be reasonably accessible to public transportation facilities.
It should be in a good state of repair.
In a city th at has a sewer system, the toilet and bathroom facilities should be
connected with that system. In all cases each family should have a private
toilet, running water, and tub or shower.
Adequate heating facilities and electricity for lighting should be available.
The building and the dwelling should conform to prevailing legal standards
(those th at are generally enforced in the community) as to construction, fire
protection, light and air, sanitation, etc.
Every habitable room should have one or more windows opening directly on a
street or on a court or yard not less than 8 feet wide.
Every bathroom should be ventilated by one or more windows opening on a
street or court, or by a vent shaft, or by artificial ventilation.

(2) Maintenance of household equipment, household supplies, and
mother’s services: To cover the working woman’s contribution to the
family for her share of (a) the maintenance of household equipment,
(6) household supplies, and (c) services of the mother in the home for
the preparation of food, cleaning, laundering, and other services, 50
percent is added to the cost of raw food for 50 weeks consumed at
home by the woman worker and to the working woman’s share of
housing, fuel, and light.
Housing for the woman living alone consists of a furnished room
with laundering privileges. The room should be in a good state of
repair, meeting the same housing standards as for a woman living

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

Living/Hosts of Working[Women

575

with her family, with the added requirements that the room should be
provided with sufficient bedding, bed linen, and towels, and should
contain adequate furniture, including a light suitable for sewing and
reading.
T

able

1. — Articles

Item
Outergarments:
Coats:
W inter________________ .
Spring________________ .
Hats: Felt__________________

Annual
allowance

X
X

4

Dresses, total____________ ____
Cotton___________
Rayon___ ________
Wool________________
Party ___ _ _ _____
Skirt, sweater, and blouse:
Skirt_____________ ___
Sweater__________
Blouse__________________
Smock__________________ _
Undergarments:
Vests___ _________ _______
Bloomers or panties, total_____
Rayon,___ ________ _____

2
5
4

Silk_____ _______________
Slips, total, ____________ ,
Rayon________ _________
S ilk .._____ __________
Girdles _______

1
4
3
1
2

Brassieres . . . _ _________
Nightgowns, total___ ,. _____
Cotton. ________________
Rayon__________ _____
Cotton flannel. _ _________
Dressing gowns:
Bathrobe________________
Kimono.______ . . . ______
Footwear:
Shoes, total____ ____________
Street___________________
Dress..__________________

3
3
1
1
1

Shoes to wear with party
dress.
Rubbers and overshoes:
Rubbers_____ ________
Overshoes ______________
Stockings.!.................................
Miscellaneous:
Gloves, total__________ .. ..
Leather_________________
Handbags . . ______ ______
Accessories: Scarf, belts, flowers,
garters, shoestrings, collars,
dress shields, dress ornaments,
etc.

8
2
4
1
1
1
X

1
1

X
X

of Clothing in Budget
Description

Wool, heavy weight, fur trimmed, medium quality.
Wool, light weight, untrimmed, inexpensive quality.
Wool felt, inexpensive quality, 2 light and 2 heavy
weight.
Medium quality, styled for street wear.
Street length, 3 fair quality, 1 inexpensive quality.
Medium quality.
Rayon, inexpensive quality.
Wool, medium quality.
Do.
Rayon, medium quality.
Knit rayon, medium quality.
3 bloomers, 1 stepin or pantie, knit rayon, medium
quality.
Stepin or pantie, silk crepe, medium quality.
Woven rayon, good quality.
Silk crepe, medium quality.
Woven elastic yarn, cotton and rayon covered, medium
quality.
Cotton, medium quality.
Medium quality.
Knit rayon, medium quality.
Outing flannel.
Wool flannel, medium quality.
Rayon, inexpensive quality.

4H
2 Medium quality.
1
Do.
1 Dress, white, inexpensive quality.
X Inexpensive quality.
X
X
X

Good quality.
Medium quality.
Kid, medium quality.
Silk, 4 thread, 42 gauge, pure-dye thread; full fashioned.

X
X

Rubberized cotton twill, medium quality.
Cotton, medium quality.

20

3
2
1
2
12

Medium quality, washable.
Medium quality, kidskin.
Lump sum of $3.00.1
Lump sum of $1.50.1
5 percent of total cost of preceding items.1

i A specific sum (or fixed percentage of the total budget) is allowed for these items since they are
extremely difficult to price, owing to the wide variation in type and the consequent difficulty of drawing
up exact specifications to insure the pricing of comparable articles in different places.
N ote.—Sport clothing is included in the recreation budget.

Clothing.—Table 1 gives a detailed list of the clothing items included
in the budget. This list was drawn up to represent a standard of
adequate clothing for the average working woman in New York State

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

576

Monthly Labor Review—March 1938

today. Substitutions can be made to meet individual preferences.
(The annual allowance is given as a fraction for some items to indicate
the replacement period; for example, one-third of a winter coat
annually means that one winter coat is bought every 3 years.)
Clothing upkeep includes dry cleaning, laundering, shoe repairs,
etc.
Personal care covers such items as toilet articles and preparations
and beauty-shop services.
Medical care.—Standards of adequate health services as determined
by the Committee on Costs of Medical Care for the general population
were adjusted to meet the needs of adult woman workers. These
included general medical care for prevention and treatment of ill­
ness, in addition to dentistry and eye care. A minimum supply of
drugs and medicines was also allowed.
Leisure-time activities.—Movies, club dues, recreational equipment,
vacation expenses for 2 weeks, church contributions, and reading
material were included in the budget.
Insurance and savings included life insurance and compulsory con­
tributions to Federal old-age insurance, as well as savings for emer­
gencies.
Other living essentials are transportation charges, contributions to
charity, candy, cigarettes, and incidentals.
Cost of Items

Having budgeted the kinds and amount of goods and services
required for adequate maintenance and the protection of health, the
second step was to price these items in representative cities and towns
of the State. The information on prices was obtained by trained field
representatives of the Division of Women in Industry and Minimum
Wage from representative stores, shops, and professional offices. In
planning this work assistance had been obtained from chambers of
commerce, trade associations, real-estate boards, labor organizations,
and other groups interested in the problem. The pricing was done
in 16 cities, ranging in population from Hempstead, Long Island, with
12,650 inhabitants, to New York City.
The findings indicate that the amount the working woman in New
York State today requires “for adequate maintenance and the pro­
tection of health” is $1,058.31 annually for the woman living as a
member of a family, and $1,192.46 annually for the woman living
alone.
Itemized costs of the budgets for the woman living alone and for the
woman living with her family in various types of community in
New York State are shown in table 2.


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

577

Living Costs of Working Women

T able 2.— Annual Cost of Adequate Maintenance and Protection of Health for Woman

Workers in New York State, 1937
WOMAN WORKER LIVING ALONE
Communities with population of—

Item

New
York
State

100,000
over
25.000
10,000
50.000 and
(except
and under and under and under New
50.000
25,000
100.000
York
City)

Total............................................................. $1,192.46 $1,228.16 $1, 214. 72 $1,187. 97 $1,170.96
Housing and food, total_______________
Rent for furnished room, including
laundering privileges_____________

New
York
City

$1,192. 57

617. 38

624.85

626.44

614. 24

593. 23

620.46

238.85
378. 53

225.85
399.00

216.06
410.38

201.24
413.00

220.48
372.75

245.96
374.50

Clothing, to tal.__________ ___________

196. 81

199.66

192.70

192.93

192. 59

198.18

Outergarm ents___ _______________
Undergarments__________ ________

102. 27
27.62
45.46
21.46

105.75
26.88
45.37
21.66

99. 62
27.02
44.92
21.14

98.48
27.70
45.12
21.63

98.97
27.06
45.32
21.24

103.26
27.85
45. 56
21.51

14.39
34.01
55. 70
72.92

16.68
36.86
54.52
73.28

19.54
34.37
53.54
73.15

19.06
32.70
50.48
72.88

19.02
33.94
52.38
72. 71

12.70
33.87
56.92
72.93

106. 75

102.71

99.88

99. 58

100.99

109.11

45.91
40.00
13.04
7.80

40. 21
40.00
14.70
7.80

37.69
40.00
14.39
7.80

37.08
40.00
14.70
7.80

38.80
40. 00
14. 39
7.80

48. 80
40.00
12. 51
7.80

94. 50

119.60

115.10

106.10

106.10

88.40

55.90
10.00
15.60
13.00

81.00
10.00
15.60
13.00

76.50
10.00
15.60
13.00

67.50
10.00
15.60
13.00

67.50
10.00
15.60
13.00

49. 80
10.00
15.60
13.00

Total_____________ ________________ $1,058. 31 $1,112.49 $1,066. 53 $1, 053.18 $1,052. 34

$1, 055. 68

Miscellaneous................ ............ ..........
Clothing upkeep..___ _____ ___________
Personal care. _____ ________________
Medical care_____ _______ ___________

Recreation_______________________
Church contributions^.____ _______

Charity, gifts................... ......................
Candy, cigarettes, etc............................

WOMAN WORKER LIVING AS MEMBER OF FAMILY

486. 76

512.34

481. 93

482.80

478.00

487.14

136. 02

155. 32

136. 28

137. 77

139. 71

133. 07

20.85
197.38

26.14
188.43

20.61
194.39

21.29
193.89

18. 69
189.64

21.05
200. 64

132. 51

142. 45

130.65

129.85

129.96

132.38

78.44
54.07

90. 73
51. 72

78.45
52.20

79. 53
50.32

79.20
50. 76

77.06
55.32

Clothing, total___ ________ ___________

196.81

199.66

192. 70

192.93

192. 59

198.18

Outergarments___ ________________
Undergarments___________________
Footw ear.._____ ________________
Miscellaneous____________________

102. 27
27.62
45.46
21.46

105. 75
26.8S
45.37
21. 66

99. 62
27. 02
44.92
21.14

98.48
27. 70
45.12
21.63

98. 97
27.06
45.32
21.24

103. 26
27.85
45.56
21.51

Clothing upkeep_____________________
Personal care________________________
Medical care....... ............................... ........
Insurance and savings_________ ______

12.20
34.01
55. 70
71.58

14.68
36.86
54.52
72.12

17.34
34.37
53.54
71.67

17. 06
32.70
50.48
71.53

16. 82
33.94
52.38
71.52

10.50
33.87
56.92
71.56

Home expenses, total_______ __________
Housing (rent) including cost of heat
and hot water_________________ .
Light, cooking fuel, and refrigerating
fuel (ice or electricity).......................
Food U .___ ____________ _______
Maintenance of household equipment,
household supplies, and mother’s
services, total______ ____________
Based on 50 percent of cost of—
Housing, light, and fuel..........
Food consumed at home____

1 The food allowance is for 50 weeks only, since food for 2 weeks is included in vacation allowance.


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

578

Monthly Labor Review—March 1938

T able 2.— Annual Cost of Adequate Maintenance and Protection of Health for Woman

Workers in New York State, 1937—Continued
WOMAN W O R K ER LIV IN G AS M E M B E R OF FA M ILY —Continued
Comm inities wit h populati on cf—

Item

New
York
State

Leisure-time activities, to tal.____ _____

$106. 75

$102. 71

$99. 88

$99. 58

$100.99

$109.11

Recreation...................................... ......
Vacation________________ ________
Education and reading material_____
Church contributions_____ ________

45.91
40. 00
13.04
7.80

40. 21
40.00
14.70
7.80

37.69
40. 00
14. 39
7. 80

37.08
40. 00
14.70
7.80

38. 80
40.00
14.39
7.80

48.80
40. 00
12.51
7.80

Other living essentials, total.......................

94. 50

119.60

115.10

106.10

106.10

88.40

Transportation.................. ...... ........... .
Charity, gifts_____ _______________
Candy, cigarettes, etc_____________
Incidentals.... ............. ..................... .

55. 90
10. 00
15. 60
13.00

81.00
10. 00
15. 60
13.00

76. 50
10.00
15.60
13. 00

67. 50
10.00
15.60
13.00

67. 50
10. 00
15. 60
13.00

49.80
10.00
15.60
13.00

100,000
over
10,000
25.000
50.000 and
(except
and under and under and under
New
25,000
50.000
100.000
York
City)

New
York
City

Relation of Budget to Wage Decision
The report of the budget survey was presented to the Laundry
Minimum Wage Board, the first to be established under the new
law, which began its deliberations on December 6, 1937. It must be
emphasized that the responsibility which the law puts upon the De­
partment of Labor is not that of arriving at a wage rate. That is the
responsibility of each wage board for each industry as it is appointed.
In establishing minimum wages for any industry, wage boards are
not bound to fix a rate equal to what it would cost to live at this
standard of adequate maintenance. They may take into account also
the value of the service or class of service rendered, and may consider
the wages paid in the State for work of like or comparable character.
In the words of Commissioner Andrews in presenting these figures,
“We know that in many instances a first wage board for an industry
will not be able at once to bring wages up to the standard here set.
We expect, however, that with the recognition of the situation as we
have found it, there will be a gradual rise from present levels to real
adequacy.”


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

INDUSTRIAL INJURIES AND THE BUSINESS CYCLE
By

M

ax

D.

K o s s o r is ,

U. S. Bureau of Labor Statistics

WHAT was the course of industrial injuries during the recent depres­
sion and subsequent recovery? An analysis made by the Bureau of
Labor Statistics of more than 426,000 disabling injuries for the years
1929 through 1935 reveals (1) that the trend of the frequency rate of
industrial injuries generally followed the trend of industrial employ­
ment, and (2) that the trend of the percentage of reported injuries
with a disability duration of 1 week or less followed the trend of in­
dustrial employment very closely. In other words, as employment
decreased, the frequency rate as well as the percentage of so-called
“ 1-week” cases generally decreased; and as employment increased,
both the frequency rate and percentage of 1-week cases generally
increased.
Trend of Industrial Injuries
For the composite group of 29 manufacturing industries, the trend
of the frequency rate of disabling industrial injuries moved in general
conformity with the trend of employment.1 (See table 1 and chart 1.)
T able

1.— Trends of Disabling Industrial Injuries and Employment in 29 Manu
facturing Industries, 1929-35
Item

1929

1930

1931

1932

1933

1934

Total number of disabling injuries studied
Industrial injury frequency ra te ..-------------Index of frequency rate (1929-35=100)--------Index of employment (1929-35=100).............

82,734
23.98
110.7
132.4

62,561
23.08
106.5
111.4

55,142
18. 85
87.0
90.7

36,104
19.55
90.2
75.7

54,494
22.17
102.3
84.7

67,168
22.62
104.4
99.6

1935
68,182
21.46
99.0
105.4

i These data are from a number of States whose workmen’s compensation laws require the reporting of
all injuries for which disability exceeds the day on which the injury occurred.

As employment dropped from an index of 132.4 in 1929 to 111.4 in
1930 and then to 90.7 in 1931 (using 1929-35 = 100), the frequency
rate dropped from an index of 110.7 to 87.0 But whereas the employ­
ment index continued to drop to a low of 75.7 for 1932, the frequencyrate index rose slightly to 90.2 for that year. For the next 2 years
the two trends moved in the same direction—upward. The fre­
quency rate rose more sharply than employment in 1933, whereas
1 The composite frequency rates given in table 1 were arrived at by weighting the frequency rate for each
industry according to the average number of wage earners, using census data where available and calculating
data for intercensus years by means of the indexes of employment computed by the Bureau of Labor Sta­
tistics. The employment indexes were calculated similarly, with the average for the period 1923-25=100.
Because no frequency rates were available for this base period, the two series, i. e., frequency rates and em­
ployment, were recomputed with the annual average 1929-35=100, thus making the two series strictly com­
parable. It is these two series which are shown on chart 1.


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

579

580

Monthly Labor Review—March 1938

employment rose more sharply during 1934. In 1935, the two trends
moved in opposite directions—the employment index continued to
increase, from 99.6 in 1934 to 105.4 in 1935, while the frequency-rate
index decreased from 104.4 to 99.0, with a decrease of more than one
disabling injury per million hours worked. On the whole, as is
clearly apparent from chart 1, the two trends moved in the same
general direction, with 1935 the only notable exception.
Chart I

TRENDS OF INDUSTRIAL INJURY FREQUENCY RATES AND
EMPLOYMENT IN 29 MANUFACTURING INDUSTRIES, 1929-1935
AVERAGE 1929-1935=100

R a te
140

IZO

IOO

80

60

Why should there be this relationship between the frequency rate
and employment? The frequency rate measures the average number
of disabling injuries per million man-hours, and therefore has no
direct relation to the volume of employment. Theoretically, the
frequency rate could remain constant regardless of whether the volume
of employment moved up or down. All that is required to reach
this result is that there shall be the same average number of dis
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Industrial Injuries and Business Cycle

581

abling injuries per million man-hours worked. This relationship
need not be affected by any fluctuations in the volume of employment.
The reasons for fluctuations in the frequency rate generally, and
the close correlation of its trend with that of the employment index,
must be sought in the economic factors which accompanied the
depression. It certainly cannot be said that the downward trend
during the depression years was due to greater managerial concern
for safety during this period, for in many instances safety activities
were discontinued or severely curtailed as economy measures. Con­
sequently, it would be in order to anticipate rising frequency rates
rather than falling rates during depression periods. Why, then, did
the rate fall so sharply from the level of 1929 to the levels of 1931
and 1932? Four reasons are suggested here, the first three of which
are generally accepted by safety engineers, whereas the fourth follows
from an analysis of the data:
1. As the depression deepened, labor forces were curtailed, with
those most recently added laid off first. This generally left employed
workers with long years of service and, usually, those of the skilled
or semiskilled types which management wanted to retain as a nucleus
for subsequent expansion. Such workers generally were thoroughly
familiar with job hazards and had developed safety habits which
were carried from job to job. As a result, there were fewer disabling
injuries per million hours worked, and the frequency rate decreased.
2. In the early stages of depression, lay-offs tended to lag behind
reductions in operation, with the result that the total number of man­
hours worked exceeded those which would ordinarily have been
required. Coupled with decreased numbers of injuries, attributable to
a general slowing down in operating tempo, the swollen man-hours
total resulted in a lowering of the frequency rate (which is the average
number of disabling injuries per million man-hours).2
3. As business conditions became worse, management shifted toward
the use of the most efficient equipment, which generally meant the
most modern equipment. Such equipment, as a general rule, was also
the safest. This factor in itself would be sufficient to reduce the
frequency rate. Coupled with a more skilled and safety-conscious
labor force, it was still more effective.
4. As the depression deepened, the number of reported disabilities
not exceeding 1 week decreased out of proportion to the general de­
crease in industrial injuries generally. As will be pointed out later,
there is a strong probability that many minor injuries, which under
more normal conditions would have caused disabilities ranging from
1 In connection with man-hours, one other point which may affect the frequency rate must be noted:
There is a possibility that during the depression man-hours were overestimated by reporting employers
who may not have allowed sufficiently for part-time operations. The reporting requirements instituted
under N. R. A. codes may have overcome this difficulty. The overestimating of man-hours worked during
the depression years, if it occurred, would have operated to depress the frequency rate.


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

Monthly Labor Review—March 1938

582

1 to 3 days, were not reported by workers. As a result, the number of
disabling injuries which entered into the calculation of the frequency
rate was depressed.3
From these explanations it can also be readily understood why the
frequency rate should have risen as employment increased. With the
relatively small increase in employment from an index of 75.7 in 1932
to 84.7 in 1933, the frequency-rate index rose from 90.2 to 102.3—
which, as a composite rate for the entire group of 29 industries, is a
very sharp increase. The obvious reason for this rise is that increases
in employment meant hiring of workers not accustomed to the hazards
of their new jobs, or workers whose safety habits had been blunted
through lengthy lay-offs and financial worries, and who, perhaps,
were too eager to make a favorable showing.
Evidence that newly added employees, as a group, were the greatest
source of disabling injuries is furnished by the petroleum industry.4
The following data are cited from a recent study by a large oil
company:
T able 2.—Relation of Accidental Injuries to Length of Employment

Length of employment

Less than 1 year..............................
1 and under 2 y e a rs__________ .
2 and under 3 years_____________
3 and under 5 years..
______ .
Over 5 years------------ ._ -----------

Percent of
total em­
ployees

15.1
7.3
9.4
19.7
48.4

Percent of
total dis­
abling
accidental
injuries
33.0
11.3
11.8
11.8
31.2

While employees with less than 1 year’s service, i. e., newly added
workers, formed only 15.1 percent of the total number of employees,
they had 33.0 percent of all disabling accidental injuries. Workers
with 2 and 3 years of employment also had a heavier percentage of
injuries than their proportionate representation in the group as a
whole. Not until the group with 3 and under 5 years of employment
is reached does the percentage of total injuries fall below the per­
centage of total employment. Workers with less than 3 years’ service,
3 I t has been suggested that this decrease might be due, in part at least, to a practice on the part of bodies
administering workmen’s compensation acts of discouraging the reporting of disabling accidents which do
not exceed the waiting period in disability and therefore were not compensable. The need for economy
and reduced budgets are cited as justification. No such practices have been found, however, and the
definite downward and subsequent upward trend of 1-week cases do not bear out any such assumptions.
It has therefore been disregarded.
* American Petroleum Institute. Accident Prevention Information, No. 67, April 15, 1937.
Similar data are given by the Portland Cement Association in its Accident Prevention Magazine of
August 1937, covering the 1936 experience of the industry. Workers with less than 6 months’ experience,
although only 3 percent of the total, had 20 percent of'all disabling injuries. Workers with less than 1
year’s experience, only 5 percent of the total, had about 25 percent of all disabling injuries.


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

Industrial Injuries and Business Cycle

583

comprising only 31.8 percent of the total working force, had 56.1
percent of all disabling accidents.
One objection which may logically be raised against the conclusion
that workers newly employed with a given concern have a higher
proportion of disabling accidents than employees with longer periods
of service is that many of such workers, while new to the particular
establishment, may not be new to the industry. Consequently these
workers should have some acquaintance with the accident hazards of
their new jobs. While this is undoubtedly true, it is also well recog­
nized that many of these workers had been out of work for a con­
siderable period of time, with the result that their safety habits may
have become blunted, and particularly so because the new environ­
ment may have presented somewhat different situations and may have
resulted in different psychological factors than they had to cope with
before. It is also a fairly common practice to shift workers with a
longer service record to less hazardous assignments, thus leaving the
more hazardous jobs to newly acquired workers.
From a low point of 75.7 in 1932, the volume of employment in the
29 manufacturing industries increased to an index of 99.6 in 1934
and 105.4 in 1935. With the volume of employment moving up
rather slowly in these 2 years, the frequency rate of injuries dropped
from 22.62 to 21.46, probably as a result of the accumulation of ex­
perience by workers taken on during 1933 and 1934. Data from other
sources indicate that 1936 will show a still lower frequency rate against
a continued increase in the index of employment.
If the experience described for the period from 1929 through 1935
may be taken as typical, it may be concluded that for the total of the
29 industries studied, and very likely for all manufacturing industries,
the course of the injury frequency rate during a business cycle is
about as follows:
1. As employment decreases, the frequency rate falls sharply. The
low points of the frequency rate and employment index tend to coincide
as to year.
2. With the first decided increase in employment, the frequency
rate rises sharply, apparently because of the return to jobs of new or
rehired former employees.
3. Subsequent increases in employment are accompanied by less
decided increases in the frequency rate.
4. As employment tends to approach a plateau, the frequency rate
turns downward, apparently because of the increasing skill and de­
velopment of safety habits—and perhaps a greater feeling of security
in the job—of workers hired or rehired during the preceding year.
A corroboration of these conclusions, except for point 4, is furnished
by data for the State of Virginia. The following data start with 1931
46585— 38 ---- 2


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

Monthly Labor Review—March 1938

584

rather than 1929, but the general trends are very similar to those
already discussed.
T able 3.— Injury Frequency Record in Virginia Manufacturing Industries, 1931 35
Index 2
Year

1931
1932
1933
1934

1935

Number of
employees

...........................................
.....................................
......... ........ ......................
______________________

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

94, 261
86, 344
93, 454
107,959
119,175

Fre­
Total man­ Disabling
hours
injuries quency
rate
worked

226,003,775
197,704, 844
203, 687, 920
203,575, 748
232,401, 588

4,453
3,286
3, 555
3,666
4, 641

19.7
16.6
17.4
18.0
19.9

Employ­
ment

Fre­
quency
rate

94.0
86.1
93.2
107.7
118.9

107.7
90.7
95.1
98.4
108.7

1 Data furnished by Industrial Commission of Virginia.
2Annnal average 1931-35=100.

It is obvious from table 3 that, as in the national data, there is a
close relationship between the trends of employment and the accident
frequency rate. The employment index dropped from 94.0 in 1931 to
86.1 in 1932, and then rose year by year, reaching 118.9 in 1935. The
frequency-rate index dropped from 107.7 in 1931 to 90.7 in 1932, and
then rose year by year to 108.7 in 1935. The two trends moved
together, both downward and upward. For the year 1935, for which
it was possible to analyze more detailed figures, the following increases
were found in the second half of the year over the first half: Lmployment, 8 percent; man-hours worked, 13 percent; number of disablinginjuries, 28 percent; and injury frequency rate, 13 percent. An
increase of 8 percent in employment, then, was accompanied by a 13
percent increase in the number of disabling accidents per million
hours worked.
Another corroboration of the conclusion that the trends of employ­
ment and injury frequency rates generally move together is given by
data published by the National Safety Council. Although there are
radical differences in the scope and composition of the data used by
the Council and the Bureau of Labor Statistics, it is significant that
the general direction of the trends of the series from the two sources
are the same. Reducing the frequency rates published by the
National Safety Council in its Accident Facts, 1936 edition, to an
index having the annual average of 1929-35 = 100, we arrive at the
following index numbers of frequency rates:
1929 ________________
1930 ________________
1931 ________________
1932____________________

1933__________ _______
1934__________ _______
1935__________ _______

176
132
108

98
103
92

91

Although this pattern does not cover the same group of industries
and concerns itself with a more highly select group of firms than the
sample covered by the Bureau of Labor Statistics, it coincides in
direction of trend with that for the 29 manufacturing industries, even
to the downward trend from 1934 to 1935.

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

585

Industrial Injuries and Business Cycle

In its most recent publication of frequency rates, the Council gives
a frequency rate of 13.57 for establishments reporting to it for 1936,
as against a rate of 14.02 for 1935, bearing out the thought already
indicated that with further increases in employment during 1936 there
would be a further decrease in the frequency rate.
Experiences of Individual Industries
As is often the case in the analysis of a large number of industries,
not all of them comply with the composite pattern for the entire
group. The trends in most of the 29 industries, however, are suffi­
ciently like that for the entire group to justify the conclusion that the
latter is representative, and that the general trends already discussed
are not due to the overbalancing of some industries moving in one
direction by others moving in the opposite direction. Table 4 gives
the individual industry data, and permits conclusions concerning the
trends of frequency rates and employment indexes. The last column
contains an evaluation of the degree of direct correlation of the two
trends for each industry. The table also shows the frequency rate for
each industry by type of disability—death, permanent injuries (includ­
ing permanent total and permanent partial disabilities), and temporary
disabilities.
T able 4.—Injury Frequency Rates and Employment Indexes for 29 Manufacturing

Industries, 1929-35
[1923-25 = 100]

Item

All industries:

Agricultural implements:
Deaths........................................
Temporary disabilities........ .
Automobiles:

1930

1931

1932

1933

1934

1935

23.98
. 15
1.38
22.45
102.17

23.08
. 17
1.41
21. 50
86.0

18. 85 19. 55
. 15
. 17
1.30 1.45
17.40 17.93
70.0
58.4

22.17
. 14
1.39
20.64
65.4

22. 62
. 17
1.64
20. 83
76.9

21.46
. 15
1.54 [Very close.
19. eo
81.4

38.11 31.76
.18
.23
2. 28
2.97
34.96 29.25
147.9 110.7

27. 97 24. 37
. 17
.31
2.83 3.13
24. 83 21.07
62.3 36.8

32. 06
. 11
1.39
30. 56
39.6

26. 92 31.55
.11
.12
2.18
1.67 [close.
24.64 29. 75
68.8 100. 2

15. 63
.10
1.49
14. 04
80.3

15. 48 13. 63
.09
. 16
1.50 1.70
13. 89 11.77
71.0 60.5

15. 59
.07
1.12
14. 40
60. 6

14.01 10.77 '
.09
.07
1.40
1.16 [Fairly close.
12. 52 9. 54
94.5 110.4

23.20
. 10
.53
22.57
85.9

20.44 17. 72
.10
.22
.79
.56
19.43 17.06
73.9 67.6

17. 77
.10
.69
16. 98
79.1

17.30
.05
.62
16. 63
88.4

16.16
.08
.71 [Fairly close.
15. 37
85.6

6.95
.02
.40
6. 53
90.2

8.25 8.37
.03
.02
.51
.57
7.71 7.78
85.3 84.5

7.29
.04
.46
6. 79
89.8

10. 57
.03
.61
9.94
94.1

10.18 1
.02
.61 [Poor.
9. 55
93.1 )

22. 76
.08
1.71
Temporary disabilities.......... . 20.97
111.3
Automobile tires and rubber goods:
25.19
.11
.59
Permanent disabilities_______
24.49
110.0
Boots and shoes:
9. 09
.01
.60
8.48
EmDloyment index......................... 96.7


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

Relation of
total fre­
quency rate
to employ­
ment index

1929

586

Monthly Labor Review—March 1938

T able 4.—Injury Frequency Rates and Employment Indexes for 29 Manufacturing

Industries, 1929-35—Continued

Item

1929

1930

1931

1932

1933

1934

1935

Relation of
total fre­
quency rate
to employ­
ment index

Brick, tile, and terra cotta:
Frequency rate________________ 46.61 42. 21 40.44 37. 9( 42. 52 42.88 36.35
.43
.26
D eaths.___________________
.53
.46
.58
.25
.30
Permanent disabilities............
.89
.81 1.22
1.03
1.34
1.05 (close.
1.67
Temporary disabilities______ 45. 29 41.14 38. 69 36.41 40.60 40.96 35. 00
Employment index_____________ 91.5
72.2
50.2
31.8 31.3
34.8
36.3
Carpets and rugs:
Frequency rate....................... ........ 9.15
8. 25 10. 72 8.89
7.96 10.46 10. 45
Deaths____________________
.09
.03
.06
.03
.00
.05
.04
Permanent disabilities_______
.72
.89
.68
.85
1.10
1.35
1.54 (Fairly close.
Temporary disabilities______
8. 34
7. 54 9.80 7. 98 6.86
9.05
8.88
74.2
Employment index________ ____ 96.2
67.5 52.9
62.8
69.1
82.2
Chemicals:
Frequency ra te ........... .................... 19.35 17. 64 11.38 7. 59 14. 27 14. 68 14.93
.14
D eath s..___ ______________
.15
.27
.27
. 15
.32
.33
Permanent disabilities..... ........ 1.23
1.09
.76
.83
.70
1.24
1.06 (Very close.
Temporary disabilities ........... 17.97 16. 28 10.35 6.62 13.42 13.11 13. 55
Employment index____________ 109.2
85.1 76.0
99.5
93.3 114.9 113.7 J
Cotton goods:
Frequency rate-------- ---------------- 15. 01 13.8S i 9.18 14.04 14.02 14. 21 13. 19 ]
.05
.04
Deaths_________ __________
.04
.02
.03
.06
.04
Permanent disabilities_______
.60
.56
.57
.32
.57
.69
.71 (•Fairly close.
Temporary disabilities. ........... 14. 36 13.28 8. 84 13.43 13.42 13.46 12.44
Employment index_____________ 96.1
80.7
74.5 67.1
85.9
91.2
87.8
Electrical machinery, apparatus, and
supplies:
Frequency rate_____ __________ 15. 27 16. 90 10. 68 8.71 10. 81 10. 52 9.54
Deaths.............. .........................
.05
.08
.06
. 14
.08
.08
.08
Permanent disabilities_______ 1.52
1.33
.94
.94
1.11
1.41
1.26 ¡■Close.
Temporary disabilities.........
13.70 15.49
9.68 7. 63 9.62
9.03
8.19
80.9 60.6
Employment index......................... 127.3 107.1
58.8
72.5
80.6 J
Fertilizer:
Frequency rate_________
. . . . 37.99 31.23 33.39 34.14 42.49 48.54 46.73 f P o o r —f re Deaths. __________________
.35
.57
.58
.44
.95
.44
.87
trend
Permanent disabilities_______
.84
1.12
1.31
1.08
.76
2.24
2.54 1 rate
almost conTemporary disabilities______ 36.57 29.71 31.92 32. 94 40.61 45.35 43.32
tin
u
o
u sly
Employment in d ex ..... ................ 113.4 111.0
78.8 56.5
70.7
92.4
88.3 l upward.
Flour, feed, and other grain-mill prod­
ucts:
Frequency rate................................ 38.05 38.74 31.12 28. 00 31.08 34.15 25. 75
.21
.15
Deaths___________________
.29
.18
.24
.43
.32
Permanent disabilities.......... .
.95
1.82 1.31
1.75
1.93
1.47
1.73 (Very close.
Temporary disabilities........... 36.89 36.70 29.12 26.45 29.46 31.79 23. 70
Employment index 3__________
73.9
80.6
69.2
78.2
68.1 65.7
76.9
Foundry and machine-shop products:
Frequency rate_________ ______ 33.69 26.50 26.09 23.79 28.83 26.79 26. 55
.25
.11
Deaths........................... ...........
.16
.27
.15
.12
.14
Permanent disabilities_______ 1.59
1.59
1.73 1.78
2.19
2. 49 2.11 (■Close.
Temporary disabilities______ 31.99 24.75 24. 11 21.74 26.49 24.16 24.32
Employment index_________ . . . 111.3
94.2
69.7 51.1
54.6
70.4
76.9
Furniture:
Frequency rate___ _____ ______ 25.64 23.45 ' 18. 29 20.90 23.09 19. 90 20.49
.11
.13
.21
Deaths____________________
.09
.04
.06
.06
Permanent disabilities_______ 2.19
1.77
1.62 2.20
2.48
2.24
2.46 (Close.
Temporary disabilities........... 23.34 21.55 16. 58 18.49 20. 57 17.60 17.97
Employment index_____________ 111.9
89.0
73.7 54.7
61.0
70.2
62.4
Class:
Frequency rate.___ ___________ 30.65 26.84 116.46 20.59 21.97 23.19 21.83
Deaths___________________
.17
.08
.16 ..07
.10
.18
.12
Permanent disabilities_______
.52
.92
.67
.56
.79
.74
.78 (Close.
Temporary disabilities............. 29.96 25.84 15.74 19.85 21.13 22.22 20.92
Employment index_____________ 96.7
83.8
71.5 59.6
71.3
96.3
91.6
Hardware:
Frequency rate_______________
36. 56 24.55 22. 75 20. 34 27.11 24.02 22.70
Deaths___________________
.15
.10
.00
. 14
.00
.24
.00
Permanent disabilities_______ 2.09
1.00
2. 29
.48 1.26
2.84
2.29 (Close.
Temporary disabilities______ 34.32 23.45 22. 27 18. 94 24.82 20.94 20.41
Employment index___ _____ . . . L01.7 88.6
70.3 58.9
63.4
77.8
75.8
Iron and steel:
Frequency rate________________ 20.02 17.72 17. 53 16.81 20.06 19. 42 17.14
Deaths____________________
.16
.19
. 19 . 15
. 17
. 17
.14
.79
.82
Permanent disabilities.............
.89
.86
1.16
1.18
1.14 (Close.
Temporary disabilities........... 19.07 16.71 16.45 15.80 18.71 18.09 15.87
Employment index 3...... ................ 103.2
90.3
68.4 57.8 1 71.0
83.6
88.4
1 These rates appear to be distorted, apparently due to erratic fluctuations in the reporting sample for 1931.
2 Employment index for flour.
3Employment index for blast furnaces, steel works, and rolling mills.


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

Industrial Injuries and Business Cycle
T able 4.

587

Injury Frequency Rates and Employment Indexes for 29 Manufacturing
Industries, 1929-35—Continued
Item

1929

1930

1931

1932

1933

1934

1935

Relation of
total fre­
quency rate
to employ­
ment index

Leather:
Frequency rate ____________________
24 39 24. 2.5
23.41
Deaths__________
. 09
0.5
.07
Permanent disabilities____
.56
.71
.73
.77
.68
1.31
1.41
Temporary disabilities........ 23. 76 23 45 20 00
Employment index________
91.1
84.6
76.9 68.’8 80.7
90.5
94.9 J
Lumber—logging and sawmills:
V
Frequency rate............. .................. 46. 79 49 69
68. 28
Deaths_________ __
.47
.50
.4 7
.46
.59
63
. 59
Permanent disabilities______
2.36
3.91
3.78 4.66
3.56
3.86
4.34
Temporary disabilities___________ 43.96 45.28 .52 43 .5.5 30
1
Employment index____
87.7
67.6
41.1 31.7
46 4 j
39Í 6 45.0
Lumber—planing mills:
V
Frequency rate ______ ______________
33. 53 41. 6.5 122 21
33.45
Deaths ______________ ___
10
. 17
. Z«J
Permanent disabilities..................... 4.02
3.21
2.33 3.88
3.42
2. 50
2.75 [■Fairly close.
Temporary disabilities______ 29.34 38.34 19 67
Employment index 4.................... ......... 84.6
64.4
51.1 35.0
33'2
35.4
Machine tools:
Frequency rate___________
26.44 21.94 1.5 .53
Deaths______________
.14
.27
|06
.32
. 12
. 08
. 18
Permanent disabilities_______
.99
.75
.68
.75
1.06
1.55
1.10 [Fairly close.
Temporary disabilities........... . 25.31 20.92 14.79 14.63 18.04 14.96 16 34
Employment index____ _______ 167.2 126.0
74.7 42.1
44.9
73.0
93 2
Paper and pulp:
Frequency rate............... _•___
29. 90 31.59 27.47 25.64 22.63 26. 65 24. 76 •J
Deaths______________
.13
.21
.21
.39
. 16
. 29
. 17
Permanent disabilities___
1.86
1. 91
1.46 1.62
1.35
1. 81
1.54
Temporary disabilities
27.91 29.47 25.80 23. 63 21.12 24. 55 23.05
Employment index______
106.1 102.5
89.5 81.9
89.0 103.8 107 6
Petroleum refining:
Frequency r a t e . ____
22.01 31.36 23. 48 13. 60 13. 53 11. 25 10.46 %
| P o o r — freDeaths ______ . . .
.36
.42
.47
.30
. 32
19
Permanent disabilities_____
.89
1.60
.94
.87
1 29 [. quency rate
1.29
1 65
J
c o n sta n tly
Temporary disabilities
29.
34
20.76
22. 07 12.43 11.92
9 06
9 41
downward.
Employment index.......... .
124.4 124.9 106.2 98.7 106.5 118.3 116.7
Pottery:
Frequency rate_______
16.32 14.91 12. 36 13.31 16. 56 18. 73 16.65 1
Deaths_________
.03
.00
.08
. 11
. 16
. 12
. 13
Permanent disabilities..........
.32
.40
.12
.63
.47
. 65
. 43
Temporary disabilities
15.97 14.51 12.16 12. 57 15.97 17.94 16 06 |
Employment index______
94.7
82.9
72.3 58.6
63 2 72 2 72 6 j
Shipbuilding, steel and wood:
Frequency rate.
23.59 29. 66 36.89 26.11 19. 32 16.17 15. 56 Fairly close
—constant
Deaths_________
.24
.22
.21
.24
19
21
decrease of
Permanent disabilities__
1.15
1. 77
1.12 1.00
1 44
1. 56
frequency
Temporary disabilities.
22.20 27. 67 35. 56 24. 87 17. 55 14 54 13 78
rate from
Employment index________
101.3
107.3 83.0 66.7
71 7 76 5
56.8
1931 on.
Slaughtering and meat packing:
Frequency rate.
46.12 38. 52 33. 75 28. 46 30.39 39. 21 26. 99
Deaths_____________
. 16
.24
.14
. 08
. 11
. 16
. 13
Permanent disabilities__
1.29
I. 66
1.79 1. 61
1. 64
2. 92
1.95
Temporary disabilities . ___ 44. 67 36. 62 31.82 26. 77 28.64 36.13 24.90
Employment index________
92.1
96.7
84.1 80.6
89.3 105. 7 84 3
Stamped and enameled ware:
Frequency rate________
30.54 19. 89 24.31 19.24 20. 33 18.16 16. 52
Deaths. _______
.12
.30
.07
. 14
. 08
. 17
. 12
Permanent disabilities___
3.00
1.67
1.88 2.19
2.39
2. 30
1. 64
Temporary disabilities .
27.42 17. 92 22.36 16.91 17. 86 15. 70 14.76
Employment index_____
120.5
106.3 85.4 79.5
97.2 119.4 132. 2
Steam fittings, apparatus, and supplies:
Frequency rate. .
31.24 30. 36 23.23 23.01 15. 93 17.07 17. 85
Deaths____________
.07
.15
.11
.32
.09
.04
. 06
Permanent disabilities__
1.05
.86
1.04
.86
.93
1.20
1.11
Temporary disabilities
30.12 29.35 22.08 21.83 14.91 15.84 16. 69
Employment index______
91.6
78.3
67.1 17.4
51.6
49.6
54.8
Stoves:
Frequency rate________
43.07 34. 63 22.59 25.98 32. 88 30. 76 32.18
D e a th s________
.10
.09
.23
. 19
.09
. 18
. 14
Permanent disabilities____
1.59
.98
1.06 1.75
2.24
1.87
1.82
Temporary disabilities
41.38 33. 56 21.30 >4.04 30. 55 28.72 30. 22
Employment index____ ___
99.3
83.1
69.4 >5. 0 64.3
82.0
92. 7
Woolen goods:
Frequency rate________
15.13 11.09
8. 58 5.41 15. 66 15. 63 15.50
D eath s..___ ______ _____
.03
.02
.13
.06
.05
.05
.04
Permanent disabilities____
.36
.20
.34
.68
1.04
1.13
1.12
Temporary disabilities
14. 74 10.87
8.21 :4. 67 14. 57 14.44 14. 34
Employment index..___ _______ 82.6
67.2
67.1
6.0
71.4
65.7 1 86.5
1These rates appear to be distorted, apparently due to erratic fluctuations in the reporting sample for 1931.
4 Employment index for lumber and millwork.


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

588

Monthly Labor Review—March 1938

In 3 industries, the trends of frequency rates and the employment
index either moved in the same direction or closely followed the entire
group pattern. In 12 more, the degree of relationship was not so
marked, but nevertheless close. In 10 industries the relationship was
fairly close, but still definitely apparent. In 4 industries, however,
there appeared to be no relationship at all.
The movements of the frequency rates in a number of industries
require special comment. In the fertilizer industry, the trend of
employment followed the group trend until 1935, when the index for
the fertilizer industry dropped, while that for all manufacturing
industries continued upward. The frequency rate, however, in­
creased from 31.23 in 1930 to 48.54 in 1934, increasing each year over
the rate of the preceding year. In 1935, however, the rate decreased
to 46.73. In 1934, both the frequency rate and the employment index
reached their highest points since 1930, when the employment index
stood at 111.0. Just why there should have been this constant in­
crease in the frequency rate—an increase of about 55 percent—from
1930 to 1934 is not clear. Perhaps it is to be attributed to the high
seasonality of the industry, with employees hired, as a rule, only for
a relatively short busy season. Under such conditions increased
labor forces seem to result in increased numbers of injuries out of
proportion to the increases in employment.
The logging and sawmill industry had a very similar experience.
Regardless of the upward and downward fluctuations in employment,
the injury frequency rate moved steadily upward, from 46.79 in 1929
to 68.28 in 1935, an increase of about 45 percent, or 21 additional
disabling injuries for every million hours worked. Again, as in the
fertilizer industry, this is an instance in which a considerable portion
of the industry’s activities are highly seasonal. It should be noted
also that the frequency rate of injuries was higher in this industry
than in any other industry listed.
Although the frequency rate of the boot and shoe industry was
generally low, it nevertheless indicates a fairly steady upward trend
during the period from 1930 to 1935. With only one exception, 1933,
the rate increased steadily from 6.95 in 1930 to 10.57 in 1934, de­
creasing slightly to 10.18 in 1935. As will be noted, the increases
occurred in permanent as well as temporary disabilities.
In the automobile industry, on the other hand, the trend in the
frequency rate was generally in a downward direction, decreasing
from 22.76 in 1929 to 10.77 in 1935, a decrease of more than half,
much of it occurring in 1935.
An exactly contrary experience was that of the petroleum-refining
industry. Except for a decrease in employment in 1935, the employ­
ment-index pattern resembles that of the composite manufacturing
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Industrial Injuries and Business Cycle

589

industries group. But the frequency rate, which stood at 31.36 in
1930, decreased steadily to a low point of 10.46 in 1935—a decrease
in the 6-year period of nearly 67 percent, or 21 fewer disabling injuries
for every million man-hours worked. There is a good reason to
attribute this highly satisfactory experience to careful, continuous,
and comprehensive safety work on the part of management in this
industry. Perhaps an additional reason lies in the fact that the
industry did not suffer the extreme swings of employment found in a
considerable number of the other industries.
The shipbuilding industry, for which the employment-index pattern
conforms fairly well to that of the entire group, also shows an almost
constant decline in the frequency rate from 1930 on. Dropping from
107.3 in 1930 to 56.8 in 1933, the employment index recovered to 76.5
in 1935. The frequency rates of industrial injuries for 1930 and 1933
were 29.66 and 19.32, respectively. But whereas the employment
index increased for the next 2 years, the frequency rate continued to
fall to 15.56 in 1935—a drop of nearly 50 percent.
A third industry in this group with constantly decreasing frequency
rates is that producing automobile tires and rubber goods. Except
for a slight rise in 1933, the rate for this industry decreased steadily
from 25.19 in 1929 to 16.16 in 1935, a decrease of 9 injuries for every
million hours worked.
Trend of Minor Injuries During Depression
It has already been mentioned that as the depression deepened,
there was a consistent decrease in the percentage which disabilities of
less than 8 days’ duration formed of all temporary total injuries.
There is a very strong probability that the decrease occurred most
heavily in accidental injuries which otherwise would be classed in the
1, 2, or 3 days’ disability groups. The statistical data utilized, how­
ever, do not permit of a nicer analysis of reported injuries than “1
week or less.” As the data for 1929 are not available in sufficient
detail, the period covered is from 1930 to 1935. It was also necessary
to omit the iron and steel industry, as no detailed classification of
temporary total disabilities was possible for this group.
In table 5 is shown for the entire group, as well as for each of the 28
industries, the percentage which these 1-week cases were of the total
number of temporary total disabilities. The employment indexes
have been computed with the average for the period 1923-25 = 100.
To permit a direct comparison of the trend of 1-week cases with the
trend of employment, both types of data were reduced to index num-


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

Monthly Labor Review—March 1938

590

bers with the annual average for the period 1930-35 = 100. The two
series, shown graphically in chart 2, are as follows:
1930
1931
1932
1933
1934
1935

Index of
1-week cases

Index of
employment

.. 99.2
.. 96.6
.. 88.8
.. 101. 8
104.4
109. 7

116.7
95.9
80.5
89. 8
105.5
111. 5

C hart 2

TRENDS OF PERCENTAGE OF ONE-WEEK CASES AND
EMPLOYMENT IN 28 MANUFACTURING INDUSTRIES, 1930-1935

U. S B u r e a u

of

L


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

abor

S t a t is t i c s

Industrial Injuries and Business Cycle

591

T able 5.—Percent of Temporary Total Disabilities in 28 Manufacturing Industries,

Reported as of 1 Week or Less, 1930-35 1
Item

1930

1931

1932

1933

1934

1935

Correlation of
direction of
trend

All industries:
Cases of temporary total disability___ 38,721 36,800 25, 907 31,485 61, 786 62,717 1
Percent first week_______ ___
38
37
34
39
40
42 /■Very close.
Employment index 2_______________
85.3
70.1
58.8
65.6
77.1
81.4
Agricultural implements:
Cases of temporary total disability___
Percent first week______________
Employment index_________ _____
Automobiles:
Cases of temporary total disability___
Percent first week______________
Employment index________________
Automobile tires and rubber goods:
Cases of temporary total disability___
Percent first week______________
Employment index________________
Boots and shoes:
Cases of temporary total disability___
Percent first week-. _ _________
Employment index_______________
Brick, tile, and terra cotta:
Cases of temporary total disability___
Percent first week__________ ____
Employment index. _____________ .
Carpets and rugs:
Cases of temporary total disability___
Percent first week______________
Employment index________________

476
41
110.7

222
37
62.3

114
36
36.8

208
31
39.6

317
39
68.8

1,103
29
80.3

982
30
71.0

673
20
60.5

996
38
60.6

1,193
41
94.5

1, 054 1
40 [■Close.
110.4

1,781
38
85.9

1,334
29
73.9

1,054
27
67.6

1,289
31
79.1

1, 456
36
88.4

1,342 ]
24 [Very close.
85.6

663
37
90.2

1,050
41
85.3

898
38
84.5

789
48
89.8

678
42
94.1

605 }
45 [Poor.
93.1

1,177
45
72.2

1,365
35
50.2

676
33
31.8

769
42
31.3

652
40
34.8

633 I
38 [Poor.
36.3

157
48
74.2

138
30
67.5

88
36
52.9

102
36
62.8

89
31
69.1

[ N u m b e r of
113
ca s es too
50 •j small to jus82.2
tify conclu1 sion.

581
36
99.5

350
32
85.1

240
25
76.0

336
39
93.3

472
39
114.9

565 )
38 [Close.
113.7

2,904
41
80.7

3, 372
36
74.5

3,586
35
67.1

4, 356
41
85.9

3,627
44
91.2

3,436 |
52 [Very close.
87.8

1,919
31
107.1

1, 273
23
80.9

706
28
60.6

1,020
31
58.8

1,318
39
72.5

1, 367 1
36 [Poor.
80.6

454
44
111.0

362
38
78.8

295
27
56.5

385
41
70.7

485
41
92.4

413 |
48 [Close.
88.3

1, 076
47
73.9

1,037
45
68.1

742
42
65.7

814
42
69.2

864
49
78.2

641
45 j-Very close.
76.9

4,245
41
94.2

3,064
35
69.7

1, 752
34
51.1

2,264
42
54.6

2,666
39
70.4

1,190
51
89.0

1,535
46
73.7

1,019
35
54.7

1,135
50
61.0

876
51
62.4

996
56 [Very close.
70.2

1,681
44
83.8

1,483
40
71.5

1,105
44
59.6

1,470
46
71.3

1,496
40
91.6

1,694
44 ■Fairly close.
96.3

227
33
88.6

230
33
70.3

134
26
58.9

203
41
63.4

202
37
77.8

194
40 •Fairly close.
75.8

Cases of temporary total disability___ 1,027
739
638
836
Percent first week__________ ____
41
44
36
45
Employment index________________
84.6
76.9
68.8
80.7
Logging and sawmills:
Cases of temporary total disability___ 3, 960 5,002 2,820 3,248
Percent first week______________
25
29
28
31
Employment index_________________ 67.6
41.1
31.7
39.6
1 1929 omitted because the necessary break-down is not available.
2 For all employment indexes, the average for the period 1923-25=100,

697
44
90.5

816
*
45 •Close.
94.9

Chemicals:
Cases of temporary total disability___
Percent first week______________
Employment index________________
Cotton goods:
Cases of temporary total disability___
Percent first week______________
Employment index _______________
Electrical machinery, apparatus, and sup­
plies:
Cases of temporary total disability___
Percent first week__________ ____
Employment index________________
Fertilizers:
Cases of temporary total disability___
Percent first week.. ______ ___
Employment index. ___________
Flour, feed, and other grain-mill products:
Cases of temporary total disability___
Percent first week.. . _______
Employment index . . __________
Foundry and machine-shop products:
Cases of temporary total disability. . . .
Percent first week_____ _________
Employment index. __ ___________
Furniture:
Cases of temporary total disability___
Percent first week______________
Employment index ___ ______ ._
Glass:
Cases of temporary total disability___
Percent first week_____________
Employment index _______________
Hardware:
Cases of temporary total disability___
Percent first week.. __________
Employment index__ __________ . . .


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

2,793
28
45.0

613 ]
48 [Fairly close.
100.2

2,892
40 [Close.
76.9

3,309
29 •Fairly close.
46.4

592

Monthly Labor Review—March 1938

T able 5.— Percent of Temporary Total Disabilities in 28 Manufacturing Industries,

Reported as of 1 Week or Less, 1930—35—Continued
Item

Planing mills:
Oases of temporary total disability.......
Percent first week:______________
Employment index3_______________
Machine tools:
Cases of temporary total disability___
Percent first week.. -----------------Employment index---------- -- ----------Paper and pulp:
Cases of temporary total disability___
Percent first week----- -- ------- _ _
Employment index_____
____
Petroleum refining:
Cases of temporary total disability___
--------Percent first week . . .
Employment index________________
Pottery:
Cases of temporary total disability___
Percent first week______________
Employment index___________ ____ _
Shipbuilding:
Cases of temporary total disability___
Percent first week.. -----------------Employment index------- ---------------Slaughtering and meat packing:
Cases of temporary total disability----Percent first week______________
Employment index....................... ..........
Stamped and enameled ware:
Cases of temporary total disability____
Percent first week__ _____ _____
Employment index------------------------Steam fittings, apparatus, and supplies:
Cases of temporary total disability____
Percent first week______________
Employment index________________
Stoves:
Cases of temporary total disability... .
Percent first week______________
Employment index-----------------------Woolen goods:
Cases of temporary total disability-----Percent first w eek --------------------Employment index-------------------------

Correlation of
direction of
trend

1930

1931

1932

1933

1934

1935

1,030
39
64.4

808
40
51.1

580
32
35.0

513
42
33.2

437
41
35.4

[ P o o r —v e r y
546
35
41.8 l 1932 on.

637
37
126.0

209
27
74.7

123
24
42.1

161
34
44.9

239
31
73.0

324
38 [dose.
93.2 1

2,429
38
102.5

2,729
39
89.5

2,183
35
81.9

2, 602
37
89.0

2,494
34
103.8

2,600
35 [Fairly close.
107.6 1

2,226
43
124.9

1, 579
48
106.2

767
35
98.7

868
38
106.5

649
27
118.3

510
35 [Fairly close.
116.7 1

304
44
82.9

274
35
72.3

214
33
58.6

303
37
63.2

258
41
72.2

252
45 [very close.
72.6 1

1, 171
27
107.3

1,363
49
83.0

581
30
66.7

362
40
56.8

354
36
71.7

403
37 [poor.
76.5 1

4, 266
43
92.1

4,002
43
84.1

3,205
38
80.6

3, 786
39
89.3

5, 039
44
105.7

321
34
106.3

563
42
85.4

330
42
79.5

351
40
97.2

319
37
119.4

321
40
78.3

268
26
67.1

152
29
47.4

152
31
51.6

225
39
49.6

319
46 [poor.
54.8 1

747
36
83.1

636
35
69.4

380
32
55.0

718
38
64.3

688
45
82.0

672
45 [Very close.
92.7 1

619
41
67.2

919
42
67.1

916
43
56.0

1,229
46
71.4

1,011
41
65.7

3,152
52 [close.
84.3 1
359 ] Poor—but close
43 > inverse cor132.2 j relation.

1,241
48 [close.
86.5 )

3 Employment index is for lumber and millwork.

The two series moved in the same downward and upward direction
in each of the 6 years. When the employment index went down,
the index of 1-week cases went down, and when the employment
index moved up, the index of 1-week cases moved up. When the
employment index was at its lowest point, the index of 1-week cases
was at its lowest point.
An analysis of table 5 shows that this relationship is found for a
very heavy percentage of the individual industries, indicating that
the phenomenon was general. There are decided differences between
the experiences of individual industries, as one would expect. In the
furniture industry, for instance, the proportion of 1-week cases was
high, indicating that about half of all temporary total disabilities
were due to minor injuries. In logging and sawmills, on the other
hand, the percentage of 1-week cases was low, indicating a prepond­
erance of more serious temporary total disabilities. In spite of all

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

Industrial Injuries and Business Cycle

593

these differences, however, the analysis reveals that out of the 28
industries, 20 showed definite trend relationships between percent of
1-week cases and employment. In seven industries the relationship
was too erratic to permit any conclusion, and in one industry the
number of injuries were too few to justify a conclusion.
It therefore appears that the fluctuation of the percentage which
1-week disability cases were of the entire number of temporary total
disabilities was not at random, but that it followed a fairly definite
pattern, which closely resembles that of movements in employment
in these industries.
Is there any logical reason why there should have been a smaller
percentage of temporary disabilities of a minor-disability character
when employment was low, and a higher percentage when employ­
ment was up? Is there any logical reason why there should have
been the close relationship in direction and timing?
The answer to these questions must be in the negative. There
seems to be no logical reason why there should be this relationship.
Nor does there seem to be any logical reason for the definite down­
ward and upward movement of the percentage of 1-week cases. No
matter how many temporary injuries there are, no matter how the
number varies, the percentage of minor injuries should not vary
markedly from year to year, except for random fluctuations. Out
of a given number of temporary total injuries, the percentage of
1-week cases should remain approximately the same from year to
year. What variations there are should not follow any definite
pattern.
What, then, accounts for the trend in the percentage of 1-week
cases? One explanation is that there actually are fewer minor
injuries during the depression because the less experienced workers
have been laid off, and that there are proportionately more minor
injuries during periods of increased industrial activity due to the
accretion of inexperienced workers. This explanation, however, does
not appear to be feasible. True, there are less industrial injuries as
the less experienced help is laid off, and more as new help is added.
But the actual distribution of disabilities according to severity should
not be affected. Experienced help should have fewer accidental
injuries—but why should proportionally more of the injuries which
do result be of a more severe character?
The most logical solution to the problem appears to be that many
minor injuries are not reported by workers, or in any case are with­
held from reporting to State authorities. Failure to make such reports
are of course reflected in statistics of accidental injuries, for if
injuries are concealed by injured workers, they do not reach the
State authorities from whom the statistics under discussion are
obtained; nor, for that matter, do they all reach the proper officials
in private manufacturing establishments.

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

Monthly Labor Review— March 1938

594

Why should there have been this withholding of reports? The
answer to this question again goes back to the effects of the depression.
When jobs are scarce, and many employees are working only part
time and generally at reduced wage rates, there is every reason why
a worker with a minor injury should keep on working. One reason is
that he cannot afford to jeopardize his own job. Further, with
decreased earnings, resulting from decreased hourly rates or reduced
working hours or both, he needs every dollar he can earn. Finally,
very few States provide workmen’s compensation benefits for dis­
abilities lasting less than a week, and when they do, the compensation
allowed is generally less than the earnings lost. The worker, there­
fore, either goes along as well as he can at his regular job, or, if he
has a sympathetic foreman, may be shifted to another job which he
may be able to perform in spite of his injury. But when the employ­
ment situation is easier, when hours and wage rates are more normal,
he is inclined to take time out if injured, even though it be only 1 or
2 days. At the same time, employees, particularly those recently
added, may not receive as sympathetic consideration from super­
visors and may be compelled to take time off until able to continue
the tasks for which they are employed so as to maintain the speed
of operations.
The understatement of disabling injuries in statistics covering the
depression years is estimated to have been at least 8 percent during
the worst depression year of 1932.5 The round figure of 10 percent
seems more nearly correct, and even so is believed to be a conservative
estimate. The following frequency rates, corrected for the given
percentage of 1-week cases and the constant of 39 percent, are given
in comparison with the percentages of such cases as computed directly
from the reported data:
Frequency rate
Computed
Corrected

1930
1931
1932_

_

. __________________________ 23. 08
___________________________ 18. 85
_____________________________ 19. 55

23. 46
19. 44
21. 07

5 The figure of 8 percent was arrived at by assuming that, for the group as a whole, 39 percent of all tem­
porary total disabilities normally would be in the 1-week group. This is the figure for 1928, when the
employment index stood at 98.7, and occurs again for 1933, a year which combines low employment with
the first upward impulse under N. R. A.


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

POWER FARMING AND LABOR DISPLACEMENT IN
THE COTTON BELT, 1937
P art 1.— NORTHWEST TEXAS

By P aul S. T aylor,1 of the University of California

I ARMS in the best lands of the Cotton Belt are beginning to be
mechanized and to be industrialized. A process begun a couple of
decades ago along and beyond its western fringes is now penetrating
some of the most important areas in the entire belt. The old system
based on tenant and cropper families on small family-size farms is in
process of profound transformation. In its place is appearing an
industrialized form of agriculture employing wage laborers, some of
whom live on the farm, but many, if not most, of whom live in the
towns. Large-scale mechanized farming, with labor paid by the day
or hour; labor swept off the land and into the towns from which it is
drawn back only during seasonal peaks; labor which is increasingly
mobile and without ties to the land—this pattern is incipient in the
Cotton Belt. Even on farms where operations remain in the hands
of working families on the land, the acreage, the capital equipment,
and the seasonal wage labor bill per farm are all increasing.
There has been much talk about labor displacement in the future
when the mechanical cotton picker is perfected. The fact is that
heavy displacement of farmers and laborers, as a result of increasing
mechanization, is already in progress in several important cotton
areas. The cause, however, is not the picker machine, but the tractor.
This study emphasizes power farming, which recently has become
disturbing both to farmers and to farm laborers, many of whom are
exposed to displacement. The use of tractors, particularly the all­
purpose, pneumatic-tired type, is spreading. It is accelerating
profound changes in the rural structure, some of which had already
received impetus from other causes such as drought and depression.
Particular attention was given to sections of the Texas Panhandle
and the Mississippi and Arkansas deltas where change is most evident.
Reconnaissance was extended over southwestern Oklahoma, the
Black Wax Prairie of Texas, and portions of Georgia and the Carolinas, in order to obtain some idea of the manner and extent to which
the changes so plainly evident in the Panhandle and delta sections
are affecting other cotton areas. Emphasis here is wholly upon
areas of change.
1
Based on researches on the security of agricultural workers in the Cotton Belt (June and July 1937) as
consultant, Social Security Board. The author wishes to acknowledge the critical assistance of specialists
in several Government bureaus, especially that of Thomas C. Blaisdell, Jr., of the Social Security Board.
The author alone is responsible for statements in the article.


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

595

Monthly Labor Review—March 1938

596

This article consists of a series of reports substantially as they were
written in the field, supplemented by additional data and commen­
taries to provide unity and perspective. The study, therefore, is in
the nature of an interim contribution of field observations on some
rural trends which are significant for those who are concerned with
formulation of thought and policy on labor and tenant problems
rooted in agriculture. This is not a comprehensive report on the
present extent, the rate, the ultimate limits, and the full social and
economic effects of mechanization of cotton production. It does not
present average conditions in the Cotton Belt. It is highly selective.
Its observations are intended primarily to point out the direction of
change in important areas and the labor patterns which are being
developed.
Observations were made with the object of delineating the cotton
workers’ insecurity arising from mechanization and its national
repercussions, irrespective of the agencies—Federal or State—which
may ultimately prove best suited to deal with particular phases. For
this reason observations on labor displacement, refugee movement to
the west coast, migration to towns and northern industry, and agri­
cultural and relief programs are all included as relevant to the broader
problem of the security of low-income workers in agriculture.
Mechanization in the Western Dry Area
The level or gently rolling topography of the western dry cotton
area, including western portions of Texas and Oklahoma, is well
suited to operations on a larger scale than in the Piedmont and most
other sections of the Cotton Belt, and many students of agriculture
have long felt that mechanization would run its course first and most
completely in this area. Farms are large here. The one-man one-mule
methods of older cotton sections with one-half row cultivator are re­
placed by four- and six-mule teams with two-row cultivators. Cotton
strippers of the sled type were first employed here. However, it is
not expected that picker machines of the type now being perfected
will be used in the western dry area, because of climate and the growth
habits of cotton.2 But the displacement anticipated from a mechan­
ized picker is already occurring. It is caused by a complex of forces,
of which the latest and now the most active is adoption of the tractor
and the four-row cultivator.
The Texas Panhandle
The Texas Panhandle has been scourged by successive years of
severe drought and depressed cotton prices. These factors, and even
2
Works Progress Administration. National Research Project. Mechanical Cotton Picker, by Roman
L. Horne and Eugene G. McKibben. Philadelphia, 1937, p. x.


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

Power Farming in Cotton Belt

597

the public measures to relieve rural distress, have profoundly affected
the social structure. Now the tractor is adding its impetus to the
forces altering the landscape and changing the social scene. On the
landscape are the marks of farms growing bigger and fewer3—aban­
doned houses and rural depopulation, tenant farmers reduced to the
status of wage laborers, thrown on relief, and scattered to other
districts. Landlords clash with their tenants over the crop-adjust­
ment checks, though not openly or in organized fashion.4 The land­
lords force tenants off the place, then use the increased cash income
resulting from the agricultural adjustment program and funds received
for the sale of their own livestock as payments on tractors, so that
more and more tenants “can't get a farm," and people say “The
farmall is ruining our country."5 The driving force of mechanization,
like drought and depression before it, is already expelling families
who load all their household possessions and children in the car, and
flee half-way across the country. These are not just “croppers," but
yeoman farmers—tenants on thirds and fourths; not only Negroes, but
white Texans as well.
Hall and Childress Counties, Texas
Because the effects of power farming are so clearly evident in this
area, Hall and Childress Counties were selected for special study.
These counties are located at the extreme southeastern tip of the
Texas Panhandle. They lie just below the “cap" rock, and are
“Great Plains" country in physical characteristics.
Cattle ranches were established at least as early as 1881 in Hall
County, and probably slightly earlier in Childress County. The
first cotton was ginned in Hall County in 1893—nine bales, accord­
ing to local reports. Settlement by farmers eager for cheap cotton
land was evidently rapid, and the breaking of the sod followed. The
Hall County Herald for September 20, 1894, stated: “They say the
farmers there (Parker County) are getting dicouraged of raising
5-cent cotton on $30 land when they can raise just as much in Hall
County on $5 land."
The farms of these counties are operated typically by tenant
farmers on thirds and fourths, who own teams and tools, and possess
managerial capacity. Two-thirds of the farms (66.7 percent in Hall
County and 64.7 percent in Childress County in 1935) are operated
by tenants (table 1). Only a small minority of the farms (one-eighth
3 Cotton was being produced increasingly under large-scale conditions even before tractors were intro­
duced in numbers. Climate, topography, and use of more capital equipment per man made this possible.
(National Bureau of Economic Besearch, Bulletin 67, Nov. 29, 1937, pp. 19-20.) Technical Progress and
Agricultural Depression, by Eugen Altschul and Frederick Strauss.
4 The Southern Tenant Farmers’ Union originated in Arkansas under similar circumstances.
‘ The term ‘-farmall” is used by people in this area to refer broadly to all-purpose tractors of whatever
brand, not to single out the product of a particular company.


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

Monthly Labor Review—March 1938

598

in Hall County and one-seventh in Childress County) are operated
by sharecroppers, working on halves and furnishing only their own
labor and that of their families. Wage laborers have always been
few, except during cotton harvest, when most of the crop is harvested
(either snapped or picked) by contract labor paid by the hundred­
weight.
T able

1.—Farms and Farm Operators in Hall and Childress Counties, Tex.,1930 and 1935
Childress County

Hall County
Item
1930

1935

1,521
Number of farms ...................................... 1,835
Farm operators, by tenure:
l 424
410
Full owners..... ........... -------- ----------68
47
Part owners......................- ............. ......
15
10
Manaeers________________________
i 1,014
1, 368
Tenants__ ____ __________________
308.7
211.4
Average size of farms__________ _______
469,481
All land in farms...........................-........... . 3S7,963

Percent
of change
-17.1

1930

1935

1, 348

1, 334

385
376
+3.4
84
53
+44.7
15
10
+50.0
t 864
895
-25.9
299.1
292.1
+46.0
+21.0 393, 692 399, 048

Percent
of change
-

1.0

-2 .3
+58.5
-33.3
-3 .5
+2.4
+1.4

i In 1935 there were 9 colored croppers and 1 colored full owner in Hall County. There were 5 colored
croppers in Childress County. In 1935 there were 184 sharecroppers in Hall County and 190 in Childress
County.

The permanent population of these counties is almost entirely
native American white. During good cotton harvests migratory
Mexicans, Negroes, and American whites from north, east, and south
Texas, from Oklahoma, and from a few more distant States help to
harvest the crop.
R E C E N T DRO UGHT AND D E PR E S S IO N

Rainfall is undependable. Heavy crop failures have characterized
most of the past 5 or 6 years. In 1934 crops failed on 97,177 acres
in Childress County and 79,470 acres in Hall County. During the
5-year period 1925-29 the two counties ginned an annual average of
99,000 bales. During 1930-36 average ginnings dropped to less than
one-half, or only 48,500 bales, and as low as 12,500 bales in 1934 and
26,500 bales in 1936.
Economic depression, too, has dealt severe blows to these counties
in common with other cotton areas. Between 1931 and 1933, the
farm-price index of cotton and cottonseed stood at the unprecedentedly
low points of 63, 47, and 64 percent of the pre-war base. Value of
farm real estate in terms of the pre-war average fell successively to
96, 83, 88, and 91 percent in Texas during 1932-35, and 94, 76, 83,
and 86 percent in Oklahoma. Values in Hall and Childress Counties
were doubtless well below the averages of either State, owing to their
location in the area of severe drought.


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

Power Farming in Cotton Belt

599

DEPOPULATION

Both Hall and Childress Counties are being depopulated. In
view of the natural and economic causes of distress just cited, this is
not surprising. Now the spread of tractor farming must be added
as another major factor.
Between 1930 and 1935 farm population declined approximately
24 percent in Hall County and 19 percent in Childress County. The
rate of rural decline was even more rapid during the past year or two,
according to the scholastic census. With coincidence of severe crop
failure and accelerated mechanization, the number of rural scholastics
(children aged 6 to 17) fell between 1936 and 1937 by 15 percent in
Childress County and by 13.8 percent in Hall County (see table 2).
The number of scholastics in Childress County as a whole decreased
21.5 percent during the 7 years between 1930 and 1937, or an average
of approximately 3 percent per year. The decline during the past 2
years in Hall County averaged only 2.6 percent, but would have been
larger except for an increase of school children from outside the county
in 1936, resulting from the establishment of a veterans’ C. C. C.
camp at the county seat.
T able 2.— Scholastic Census of Children Aged 6 to 17 Years
CHILDRESS COUNTY, TEX.
1930

1933

1936

Percentage
change

1937

Item
Num ­
ber

Per­
cent

Num­
ber

Per­
cent

Num ­ Per­
ber
cent

Num­ Per­ 7years, 1 year,
ber
cent 1930-37 1936-37

2,657
1,884

58.5
41.5

2,256
1,963

53.5
46.5

2,020
1, 987

50.4
49.6

1,708
1,857

47.9 -35.7
52.1 -1 .4

-15.5
-6 .6

4,541

100.0

4,219

100.0

4,007

100.0

3, 565

100.0 -21.5

+11.0

HALL COUNTY, TEX.1
1935

1936

Percentage
change

1937

Item
Num ­ Percent Num ­
Num ­
2 years, 1 year,
ber
ber Percent ber Percent 1935-37 1936-37
Rural _____ - ________________
2, 571
Memphis (city)____ ____ _____ _ -.1,104
Total_______________ ____

3, 675

70.0
30.0

2, 673
1,184

69.3
30.7

2,305
1,180

66.1
33.9

-10.3
+6.9

-13.8
- .3

100.0

3,857

100.0

3,485

100.0

-5 .2

-9 .6

1 Establishment of a veterans’ C. C. C. camp at Memphis in 1936 increased the Memphis and county
numbers of scholastics beginning with that year. One rural district, which had 46 scholastics in 1936, was
consolidated with Memphis in 1937, minimizing the apparent decline in the city, and increasing the apparent
rural decline.

Recent acceleration in rate of decline under stress of crop failure
and spreading mechanization is shown by the fact that the decline
in scholastic census, approximating roughly the decline in total
46585— 38------3


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

Monthly Labor Review—March 1938

600

population, reached 11 percent in Childress County and 9.6 percent
in Hall County during the past single year.
School census figures reveal the population movement within the
counties during these recent years. Until 1936 the brunt of depopu­
lation was borne almost entirely by the rural portions of both counties.
The migration of people from the countryside to the towns more than
offset the losses of the towns until that date. Now the towns as well
as the rural sections are losing population, although at a much slower
rate. The rural portion of Childress County has declined 35.7 percent
since 1930, while the county seat lost only 1.4 percent of its school
population. Indeed, from 1930 to 1936 it gained population, prin­
cipally by accretions from the countryside, but during the past year
(1936-37) even the city lost 6.6 percent of its scholastics.
The same process has been taking place in Hall County, as the
statistics, despite the interfering factors noted in the footnote to table
2, make amply clear.
DISPLACEMENT OF ANIMAL POWER ON FARMS

Horses and mules have always furnished the motive power on
farms in Hall and Childress Counties. Between 1930 and 1935,
however, farmers were slowly replacing them with tractors, as a few
had done even before 1929. Since 1935, the rate at which farmers
have been disposing of their horses and mules has been astonish­
ingly rapid (see table 3).
T able 3.— Number of Horses and Mules in Childress and Hall Counties, 1930 and 1935
Childress County

Hall County

Year

1930......................
1935......................

Horses

Mules

Horses

Mules

3,175
2,847

4,733
3,625

3, 332
2,887

5,771
4, 614

328

1,108

445

1,157

In Hall County, the net loss of horses and mules during the 5 years,
1930 to 1935, was 1,602. This represented a decline of 17.5 percent
for the entire period, or an average of only 3.5 percent per year.
According to the Memphis (Tex.) Democrat of February 5, 1937,
recent displacement of animal power has been much heavier.
It has been variously estimated by stockmen, farmers, and implement dealers
th at from 750 to 1,000 mules and horses have been shipped out of Hall County
within the past 12 months. Most of the mules are shipped from here to Mississippi
and Tennessee, where they are used in industrial farm work.

On the basis of these estimates, the number of horses and mules
declined between 10 and 13 percent in a single year, or about treble
the average rate of decline during the preceding 5 years. Clearly, the

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

Power Farming in Cotton Belt

601

sale of horses and mules off the farms is continuing at an accelerated
rate.
INCREASING USE OF TRACTOR POWER ON FARMS

The past 2 years particularly have witnessed rapid increase in the
use of tractors in Childress and Hall Counties. No census data are
available since 1930, when 94 and 90 farm tractors, respectively, were
reported. The annual numbers of recent tractor sales in Childress
were estimated by an implement dealer as follows: 1934-35, 10;
1935—36, 20; 1936—
37, 105. Similar estimates for Hall County were:
1935, 100; 1936, 160; 1937, 200. These figures are to be regarded only
as indications of trend. The Memphis (Tex.) Democrat in February
1937 described the rapid influx of tractors:
Keeping pace with, the mule exodus here the past few months have seen an
influx of tractors. Six carloads of tractors were unloaded in Memphis alone
during the month of January. At least 150 tractors were distributed over this
immediate area through Memphis implement channels during the past year.

This tremendous acceleration in use of tractors has all come since
lighter, cheaper, pneumatic-tired tractors have been placed on the
market. Lower cost, lower gasoline and oil consumption, better
traction in the sandy soils of Hall and Childress Counties, which
resisted earlier heavy models, freedom of movement on public roads,
and the rising cost of feed because of drought, have all played a part.
Farmers have been enabled to purchase tractors even after several
years of bad crops because they have received Government cropadjustment checks, and because they can trade in their mules and
horses at good prices.
DISPLACEMENT OF TENANT FARMERS

The fast-growing use of tractors has caused heavy displacement of
tenant farmers. The continuance of tractor purchases will force
more off the land. Each managing tenant on thirds who is displaced
represents normally the scrapping of a family farm operator. The
displacement of sharecropper families, which is likewise occurring,
represents displacement of a laborer who receives payment on shares
in lieu of wages. The “family farms” which remain after mechaniza­
tion generally are enlarged in acreage and capital equipment, and are
more commercialized. On larger holdings, even the “family farm”
structure frequently disappears completely, and is replaced by a
single large-scale industrialized operation using day laborers.6
6
The clear prospect of more extensive mechanization and industrialization of Great Plains agriculture
in the Cotton Belt does not imply that no other type of farming will remain. “ Undoubtedly mechaniza­
tion will progress, and where the application of large machinery proves profitable a further concentration
of acreage will take place. But the advantages that the perfecting of small-scale machinery may bring
will increase the resistance of the medium-size farms, so that even in the Great Plains they may survive.”
(National Bureau of Economic Research, Bulletin 67, Nov. 29, 1937, p. 14i Technical Progress and Agri­
cultural Depression.)


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

602

Monthly Labor Review—March 1938

Displacement of tenants occurs from several causes, whose effective
operation is clearly evident and recognized by all classes in Hall and
Childress Counties. Among these causes are the following:
1. Landlords, during the past 2 years, are increasingly taldng over
the operation of their own farms as a last measure of defense against
loss of ownership. They have been impelled to do this by successive
years of low prices and of crop shortage caused by drought, which
have increased the difficulty of meeting taxes and interest on mort­
gages, which customarily carry a lien on the landlord’s quarter of the
cotton crop. Individual landlords and even loan corporations which
have foreclosed on the mortgagors are taking over farm operation
in this manner. Each time this occurs, at least one tenant is displaced.
The large landlords appear to have taken the lead, causing most
of the displacement. On February 5, 1937, the Memphis (Tex.)
Democrat stated that “The tractor is fast taking the place of the
mule on the larger farms of Hall County.” Smaller landlords, and
even tenants who can finance it, are joining the move to mechanize
farms and increase their size, with the result that more families are
forced off the land.
2. The use of tractors greatly increases the area which one capable
farmer can operate. Their introduction in the interest of economical
operation, therefore, is rightly regarded as the major cause of dis­
placement at the present time. Commonly, the landlord who pur­
chases a tractor throws two 160-acre cotton farms operated by tenants
into an operating unit, and lets both tenants go. Sometimes the
rate of displacement is greater, rising to 8, 10, and even 15 families
of tenants. The landlords either operate their own farms with their
own labor or replace the tenants with a reduced number of wage
laborers.
When tenants purchase tractors, they generally double the size of
their farm, thus displacing another tenant. But most of the tractors
are purchased by landlords, with somewhat higher average displace­
ment resulting. One implement dealer reported from his records
chat out of 40 sales of new tractors, 32 had been made to landlords,
and only 8, or 20 percent, had been made to tenants. This was
regarded as representative of new machines, although purchase of
used machines by tenants would raise somewhat their share of total
tractor purchases.
3. The use of low-paid wage labor instead of tenants to drive
tractors is the rule. This is a further measure of economy to land­
lords. The tenant who is unable to get another farm either becomes
unemployed or he accepts employment in the reduced status of wage
worker, driving a tractor. In Hall and Childress Counties, laborers
usually receive only $1.25 a day when they work, and a house. Since
the superior efficiency of tractor operation reduces the need of workers

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

Power Farming in Cotton Belt

603

on the land, a large part of the displaced tenants cannot even obtain
regular farm work as tractor drivers.
The displacement of tenants was already in progress by 1935, espe­
cially in Hall County, where tenant farmers declined by one-quarter
between 1930 and 1935. At the same time, full owners who operated
their farms, increased 3.4 percent, part owners who operated their
farms increased 44.7 percent, and the average size of farms rose from
211 to 308 acres, or 46 percent.
The same tendencies were operating in Childress County, but to a
much less degree before 1935. Although part-owner operators in­
creased by 58.5 percent and the average size of farm by 2.4 percent,
the number of tenants declined by only 3.5 percent. The chief expla­
nation of these differences between Hall and Childress Counties before
1935 are threefold: (1) More sandy soil in Childress County retarded
the introduction of tractors longer so that their effects were registered
only slightly before 1935; (2) the existence of wheat production in
Childress County, which is practically absent from Hall County, had
already made the average size of farms large in the former county; (3)
the average annual production of cotton in Childress during these
years was less than three-fourths the production of Hall County.
The heavy displacement of tenants was due to all the factors which
have been noted, but not to abandonment of farms, for the acreage in
farms increased in both Hall and Childress Counties, while tenants
were leaving. During the past 2 years, displacement of cotton
tenants has become even more rapid than before, and the role of the
tractor in the process has increased in importance. The march of
large-scale mechanized operation is in full swing in both counties.
No measure of the extent of displacement is available, nor of the
force of each separate factor in causation. Two protesters charged
that 420 tenant families were in process of displacement at the end of
1936 in Hall County alone. A tractor dealer estimated that from 50
to 100 families had already been moved off in Hall County in 1936.
Probably the actual number displaced recently in Hall County is
somewhere between these estimates. The loss of 354 tenant farmers
before 1935, and the knowledge that tractor sales and displacements
have been accelerating since 1935 makes it clear that the number is
large.
The exact number already displaced in these two counties is of
secondary importance to this report, however. Of primary impor­
tance are (1) the potential displacement, within the next 2 years, of a
few hundred tenant families not already moved off who are in imminent
danger of loss of their livelihood; and (2) the growth of wage labor and
spread of an industrialized labor pattern on larger holdings.


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

604

Monthly Labor Review—March 1938
WHERE DISPLACED TENANTS GO

Alternatives for the displaced tenants are few and bitter. Many
go to the towns or move into farmhouses vacated by other displaced
tenants, and fall upon W. P. A. or other forms of relief. The move­
ment from farm to town largely explains why the towns have held, or
even temporarily increased, their populations during a period of heavy
rural depopulation. Some displaced tenants become wage laborers on
farms, a sharp decline in status, especially for those who were operat­
ing tenants with teams and tools. It appears that few, if any, tenants
remain as wage workers to drive tractors on the same farms which
they occupied as tenants.
The present status of 26 families which left one rural school district
in Childress County after 1929 was furnished by the school teacher of
the district. Eight ex-tenant farmers were on relief in 1937, unable
to find a farm. Three were wage laborers, three homesteaded in New
Mexico, probably under difficult conditions with poor prospects, and
two returned to “farms” or small holdings they already owned. Only
8 out of 24 families, or one-third, had obtained other farms to rent.
One man who had been a laborer remained a laborer, and a merchant
had fallen on relief.
No convincing evidence was received to indicate that tenants are
selected for displacement on the basis of inferior ability, or shortness
of tenure. The contrary was strongly asserted by many, and backed
by specific citation. Enough was seen and heard of displaced tenants
and of those retained as tractor drivers to believe that low farming
capacity of tenants, at least of those displaced during the past couple
of years, had no important relation to their displacement.
Many ex-tenants of Hall and Childress Counties emigrate to
Arizona or California, there to work in the cities, or more often on the
irrigated farms of those States. Fresh departures are taking place
continually. Some families go to north Texas or other portions of that
State, perhaps obtaining a submarginal farm, but most of them go
west. Families sell all their possessions, even down to washing ma­
chines and old wrenches, buy a cheap used car and home-made trailer,
load their bedding and stove on the trailer, and with the children in
the car seek refuge by flight halfway across the country.
SOCIAL EFFECTS OF DISPLACEMENT

The course which tenant displacement is running full tilt manifests
itself in a number of ways, some of which have already been discussed.
The evidence of displacement is written clearly on the rural landscape,
now strewn with abandoned tenants’ houses, windows boarded, and
fields cultivated close. In the towns, vacant houses are appearing
in the moderate-rental districts, and rural slums are being built on
the fringes.

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

Power Farming in Cotton Belt

605

Rural merchants and service occupations lose trade and fail.
Drought is bad for them, but displacement is their finish. Town
merchants, too, who cater to families of small incomes, are losing
trade for the same reasons. Rural schools shrink in size and curricu­
lum, teachers are dismissed, and rural churches languish. Mechani­
zation of the farms and bad crops operate like good roads to the
detriment of crossroads institutions and merchants.7
Ihose who have long been living at relief levels are becoming
dispirited and hopeless. Large families are the rule among them,
and relief wages of $22.80 a month are for many of them the verge
of slow starvation. After experiencing this for a short time, many
families emigrate.
Tenants who yet retain farms are starkly fearful that they may
lose them and suffer the fate of the others. Open class conflict has
not yet broken out, but the elements of it are present. So far, there
is only discussion, some in newspapers and much around country
stores and gas stations. The Memphis (Tex.) Democrat recorded
last October the view of those who protest against displacement by
landlords with tractors:
* * * the large farm owner-operators are doing their farm work with
tractors, dismissing the renters and leaving the rent houses on the farms vacant.
One farmer cites th at the rent farmers who are displaced by power
machinery will have to move to town and join the army of unemploved to be
taken care of by the Government.

Conflict between landlords and tenants focuses generally on who
shall receive the Government crop-adjustment money. This is so,
not only because both parties are in hard circumstances, but also
because this money often provides the means to buy the tractors
which displace the tenants. Especially after exhaustion of financial
resources by years of drought, this one cash resource becomes of crit­
ical importance and bitter struggle centers in it.8
Those landlords who displace their tenants have, of course, their
defenders. A business woman explained:
The landlord figures he owns the land and he leases to the Government. Mr.
Landowner didn t put the tenants off the place, but a group of them raised such
a fuss about the checks—and then they had to get off. I ’d rather have some
place to make a living than to go away, wouldn’t you?
7 When tractors were invading the Wheat Belt of the Inland Empire of Washington in the twenties and
early thirties, a general merchant’s view was: “ This movement toward power farming is damaging every
small town in this section of the State. Towns which had a good volume of business a few years ago are
now very dull. There are fewer farms and less people on them. A few years ago we bad a heavy seasonal
labor movement into this section. The harvest hands would come in about the 15th of July and stay through
the greater part of the summer. Now the harvesting season is much shorter, and there is a smaller number
of workers. Our sales of work shoes and work clothing of all kinds as well as foodstuffs have fallen off very
heavily.
(U. S. Department of Commerce. Bureau of Foreign and Domestic Commerce. Commercial
Survey of the PacificNorthwest, Domestic Commerce Series No. 5.)
8 The view of tenant farmers was expressed by two men from Hall County in the Semiweekly Farm
News, Dallas, Tex., January 19, 1937.


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

606

Monthly Labor Review—March 1938

And even tenants sometimes showed understanding by interspersing
tlieir remarks with such phrases as “Of course, if I was a landlord I d
do the same thing.” Doubtless, there is often much reluctance on the
part of even these landlords who displace their tenants.
Whether the bitter cry of the tenants against the “greed” of the
landlords is well-founded is of importance to administrators and
framers of the farm program. In this area there have been protests
against displacement in violation of the crop-reduction contracts, and
in some cases restitution has been ordered. But of more lasting
importance is the present reshaping, at great social cost, of the social
organization and the future of Hall and Childress Counties by forces
more impersonal than “greed.” What is that future?
THE FUTURE

The rapid march of mechanization, with continued heavy displace­
ment of tenant families, is inevitable under present conditions. The
misery entailed by cutting the ground from under these families is
enormous.
Large-scale tractor farming will support fewer operators, who will
depend on wage laborers. The form of organization for cotton culture
will probably approximate that now prevailing in Nueces County,
Tex., which is one of the leading cotton-producing counties of the
United States: Large farms, a few operators, a few laborers, their
wages occasionally supplemented by very small allotments of cotton
land to hold them on the farm the year round, hordes of migratory
laborers for the harvest.
When the rains return, the displaced tenants will probably not come
back to Hall and Childress Counties. The new methods of farming
leave no place for them. Depopulation of these counties on the
plains seems destined to be permanent. Perhaps it should be.
Not only will there be no place in these counties to reabsorb properly
those who have left, but the next 2 or 3 years will witness the dis­
placement of perhaps a couple of hundred or more families from the
same small area, who will sink down to relief at home, or seek refuge
elsewhere. Whether the drought continues or the rains come, the
westward stream of the distressed will continue to be fed by victims
of mechanization.
Adjacent Areas in North Texas
The same forces of drought, power farming, etc., which are pro­
ducing heavy displacement of cotton tenants in Hall and Childress
Counties are at work in a much larger surrounding cotton area. Es­
pecially to the east of Childress, many cotton farmers are not only
introducing tractors, but also are shifting much of their plantings to
wheat, in order to take advantage of winter rain which has persisted

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

Power Farming in Cotton Belt

607

to some degree even during the drought years. The effect on tenants
is the same as mechanization of cotton farms—enlarged farms, fewer
farmers, low labor requirements, displaced families.
The dark future faced by a tenant on thirds and fourths in Harde­
man County is representative of the effects of this type of mechaniza­
tion. He now operates a farm, but has been informed that it will
not be available to him in 1938.
I may be a little late in writing you this letter, but was waiting to see what
would be the outcome of my hunt for a place, and the outlook right now is that
I will move to town and sell my teams, tools, and cows. I have hunted from
Childress, lex ., to Haskell, lex., a distance of 200 miles, and the answer is the
same.
There is one man in this end of the country has rented 2,800 acres and is running
it solely to wheat. And these farms are from one-quarter to one-half section in
a place with house, barns, and windmill on nearly all of them.
Another man owning four farms with improvements on all of them has rented
to one man two of these farms to sow in wheat, and the renter lives on one-half
section farm of his own in the sand.
There are numerous business men and office holders in Quannah that are
renting land to sow in wheat and paying a bonus on it.
I know one landowner who made two renters move for getting him to sign a
waiver (giving them the tenant’s share of the Government check) so they could
borrow money to make this crop on.
So what is the little man going to do, the one th at farms from 100 to 150 acres
of land.


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

CONSUMPTION HABITS OF THE AMERICAN PEOPLE
THE Bureau of Labor Statistics is bringing to a conclusion two major
studies of consumption, a study of the money disbursements of wage
earners and lower-salaried clerical workers in 55 cities, begun in the
fall of 1934, for the purpose of revising and extending its indexes of
the cost of goods purchased by this group, and an investigation of
broader scope, undertaken in the winter of 1935-36, covering the con­
sumer purchases of families of all income and occupational groups in
32 cities. The subject matter covered by the two studies is identical,
but the groups covered and the methods of sampling and of analysis
are different.
The office of the United States Commissioner of Labor Statistics
has been making studies of the money receipts and disbursements of
wage earners and salaried workers throughout the country since 1888.
These studies have served a wide variety of purposes. The first was
undertaken to secure information on wages and levels of living among
American and European workers in the same industries. It covered a
large number of cities, but did not present separate figures for any
of the cities in which data were obtained. The studies made in 1903
and 1918 were initiated primarily for the purpose of providing weights
for indexes of the cost of food, and of other goods purchased by families
of wage earners and salaried workers. The first did not summarize
the data secured in each city separately, but the second gives figures
on sources of family income, on group expenditures and savings, on
number of families living in dwellings of different size, on expenditures
for fuel and light, and on certain housing facilities, for 12,096 families
at 7 different income levels in 92 different cities.1
The study of the money receipts and disbursements of 506 Federal
employees living in 5 cities, made by the Bureau of Labor Statistics
in 1928 for the Federal Personnel Classification Board, was limited to
employees with salaries under $2,500. It was intended primarily to
show how far the families of such employees are dependent on the
incomes of supplementary earners, and to what extent their incomes
meet their annual disbursements.2
An investigation of the consumer purchases of Federal employees
living in Washington, D. C., was undertaken in the fall of 1933 in
connection with the establishment of an index measuring changes in
the cost of goods purchased by this group. Employees living as single
i U. S. Bureau of Labor Statistics Bull. No. 357: Cost of Living in the United States. Washington, 1924
(pp. 18, 80, 276, 344).
3 Monthly Labor Review, August 1929 (pp. 41-61), September 1929 (pp. 248-259), October 1929 (pp. 241-254)
and November 1929 (pp. 1-10): Cost of Living of Federal Employees in Five Cities.

608

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

Consumption Habits of American People

609

individuals and eating their meals at restaurants and boarding houses
were chosen from among those with basic salaries from $1,000 to $1,500,
and employees living in family groups were chosen from among fami­
lies of five different types, one type with basic salaries from $1,000 to
$1,500, three with basic salaries from $1,500 to $2,000, and one with
basic salaries from $3,000 to $4,000.3
In the fall of 1934 the Bureau of Labor Statistics initiated a study
of the money disbursements of wage earners and clerical workers for
the purpose of revising and extending its cost-of-living indexes.4
This investigation covers all the details of the money receipts and
disbursements of 16,000 families with incomes ranging from $500 to
well over $3,000 for a few families with several earners. It also
includes data on home ownership, housing facilities, and quantities of
food, clothing, and furniture and furnishings purchased at different
seasons of the year. Two summaries of the money disbursements of
the groups covered in each city have been prepared which show (1)
disbursements by groups of items at different income levels, and (2)
at different economic levels. The second analysis takes account not
only of the amount of money spent during the year for goods and
services, but also the number, age, sex, and occupation of the persons
for whom it is spent. The analyses of the details of the money dis­
bursements in this study have been made by the different economic
levels prevailing among the groups studied.
The studies of consumption made by the Bureau of Labor Statistics
have been more extensive than those of any other agency studying
urban families in the United States, but it is evident from these
examples that they have not been of a nature which made possible
an estimate of the purchasing power of all urban groups, or of the
way that purchasing power is used. They have served specific
* M onthly Labor Review, July 1934 (pp. 213-244): Changes in Cost of Living of Federal Employees in the
District of Columbia from 1928 to 1933.
4 The cities with population over 50,000 included in this study (in the various geographic areas) are as
follows: New York City (white and Negro families); in the North Atlantic area, Boston, Mass., Buffalo,
N. Y., Johnstown, Pa., Lancaster, Pa., Manchester, N. H., Philadelphia, Pa. (white and Negro families),
Pittsburgh, Pa. (white and Negro families), Portland, Maine, Rochester, N. Y., Scranton, Pa., Springfield,
Mass.; in the East North Central area, Cincinnati, Ohio (white and Negro families), Cleveland, Ohio,
Columbus, Ohio, Detroit, Mich., Grand Rapids, Mich., Indianapolis, Ind. (white and Negro families),
Lansing, Mich., Milwaukee, Wis.; in the West North Central area, Denver, Colo., Kansas City, Mo., Kans.
(white and Negro families), Minneapolis-St. Paul, Minn., St. Louis, Mo. (white and Negro families), Salt
Lake City, Utah; Southern area, Baltimore, Md. (white and Negro families), Birmingham, Ala. (white
and Negro families), Dallas, Tex., Houston, Tex. (white other than Mexican and Mexican), Jackson, Miss,
(white and Negro families), Jacksonville, Fla. (white families), Louisville, Ky. (white and Negro families),
Memphis, Tenn. (white and Negro families), Mobile, Ala. (white and Negro families), New Orleans, La.
(white and Negro families), Norfolk, Va. (white and Negro families), Richmond, Va., (white and Negro
families); in the Pacific area, Los Angeles, Calif, (white other than Mexican and Mexican), Sacramento,
Calif., San Diego, Calif., San Francisco-0akland, Calif., Seattle, Wash.
W ith the cooperation of various State authorities correlated studies of the money disbursements of wage
earners and clerical workers have been made in the following cities under 50,000 population: (1) in New
Hampshire, Berlin, Claremont, Concord, Conway, Dover, Keene, Laconia, Jittleton, Nashua, Ports­
mouth; (2) in Michigan, Marquette; (3) in California, Modesto; and (4) in Nevada, Reno.
Summaries of the data secured in this investigation have appeared in the Monthly Labor Review for
March 1936, May 1936, June 1936, September 1936, December 1936, January 1937, June 1937, and September
1937. The"analyses of the data secured in this investigation are practically complete.


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

610

Monthly Labor Review—March 1938

purposes, but the funds allotted to them have not made possible their
extension to the large sections of the community not touched by the
immediate problems under consideration.
The coordinated study of consumer purchases which was under­
taken for the Works Progress Administration by the Bureau of Labor
Statistics and the Bureau of Home Economics, in cooperation with the
National Resources Committee and the Central Statistical Board, in
January 1936 is broader in scope than any of the studies of consump­
tion which have preceded it.
The plan for this investigation was built upon the long experience of
both the Department of Labor and the Department of Agriculture in
securing consumption data from individual families, and upon specific
suggestions for a study of consumption according to incomes made by
a committee of the Social Science Research Council in 1929.5
The present study of consumer purchases differs from those previ­
ously undertaken, not only in its inclusion of all income groups and
occupational classes, but also in that it is designed to cover a sample
sufficiently large to allow for comparison between different sections
of the country; between urban and rural communities; between vary­
ing degrees of urbanization; between families at different income levels;
and, within any given income level, between families of different com­
position and occupation. It will provide the nearest approach to a
complete picture of American levels of living which has yet been
attempted.
Information has been secured on income, family size and compo­
sition, type of dwelling, and expenditures for housing for families of all
types and of all nativity and color groups. Data on the distribution
of total family expenditures among specific goods and services, and on
savings and investments, have been limited to native-born families
including husband and wife not having received relief during the year
covered by the study. The extension of the study of expenditures to
cover the purchases of foreign-born families, families on relief, and
families not including husband and wife, in such a way as to provide
results capable of clear-cut analysis would have required an allocation
of funds, and of personnel, larger than seemed practicable within the
time available for the investigation.
The plan of the study will make possible for the first time a compar­
ison of the spending habits of families of given size and composition
from one income level to another, from country to city, from city to
city, and from region to region. The schedules used in all the cities
covered in the investigation by the Bureau of Labor Statistics and the
Bureau of Home Economics are practically identical. For the rural
areas certain modifications of both the schedule and the method of
s Social Science Research Council. Consumption According to Incomes. A suggested plan for an inquiry
into the economic and social well-being of the American people. 45 pp. September 1929. (Mimeographed.)


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

Consumption Habits of American People

611

sampling were necessary in order to meet the different conditions
imposed by country life, but the information collected in city and
country is as nearly comparable as it was possible to make it.
The coordinated studies of consumer purchases by urban and rural
familes coyer the populations of 2 metropolitan communities; 6 large
cities averaging 300,000 inhabitants; 14 middle-sized cities of 50,000 to
75,000; 29 smaller cities from 10,000 to 20,000; 140 villages; and 64
farm counties.6
In selecting the data to be secured in this investigation, and the
analyses to be made, consideration has been given to the different
interests which may be served by a study of consumer purchases
The information obtained will be valuable to scientific groups studying
problems of taxation, tariff, social security, consumer protection, or
wage adjustments, and to legislative and administrative bodies in
Federal, State, and city governments. It will shed light on the rela­
tive abilities of farm and city to absorb one another’s products, and
the manner in which that capacity changes as rural and urban incomes
change. It will also supply the needs of groups of organized workers
which have been requesting data for use in wage negotiations which
would show differences in the levels of living of rural and of urban
workers, in cities of different size and in different parts of the country.
Agricultural and business groups have been in need of data on consum­
er demand which could be used both in planning current production
and distribution and in long range policy-making. Bankers and
Government agencies concerned with banking have wanted information
on habits of saving, of investing, and of borrowing at different economic
6 The cities included in the study are as follows:
B u r e a u o f L a b o r S tatistics

Metropolises:
New York.
Chicago.
Large cities:
Providence, R. I.
Columbus, Ohio.
Atlanta, Ga.
Omaha, Nebr.
Denver, Colo.
Portland, Oreg.
M iddle-size cities:
Muncie, Ind.
New Castle, Pa.

Springfield, 111.
Haverhill, Mass.
New Britain, Conn.
Columbia, S. C.
Mobile, Ala.
Dubuque, Iowa.
Springfield, Mo.
Butte, Mont.
Pueblo, Colo.
Aberdeen-Hoquiam, Wash.
Bellingham, Wash.
Everett, Wash.

Small cities:
Beaver Falls, Pa.
Connellsville, Pa.
Logansport, Ind.
Mattoon, 111.
Peru, Ind.
Wallingford, Conn.
Willimantic, Conn.
Albany, Ga.
Gastonia, N. C.
Billings, Mont.

B u r e a u o f H o m e E c o n o m ic s

Small cities:
Astoria, Oreg.
Beaver Dam, Wis.
Boone, Iowa.
Columbia, Mo.
Dodge City, Kans.
Eugene, Oreg.


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

Greeley, Colo.
Greenfield, Mass.
Griffin, Ga.
Klamath Falls, Oreg.
Lincoln, 111.
Logan, Utah.
Mount Vernon, Ohio.

Moberly, Mo.
New Philadelphia, Ohio.
Olympia, Wash.
Provo, Utah.
Sumter, S. C.
Westbrook, Maine.

612

Monthly Labor Review—March 1938

levels. Consumption data have also been needed by groups concerned
with the development of normative budgets, both for dependent
families receiving allowances from social agencies, and for independent
families wishing to compare their spending, actual and planned, with
the average expenditures of families of similar type and income,
spending enough to secure nutritionally adequate diets and standard
housing.
The information secured will also meet the need of social scientists
who have an interest in knowing how standards of living become fixed,
and how standards differ from actual levels of living. Until very
recently, economic theory has concerned itself primarily with the
applications of labor and capital to production and exchange. We
have not lacked impressive statistics of national production, bank
clearings, and factory pay rolls. But in regard to the individual
choices of the consumer—whose willingness^ and ability to absorb the
offerings of the market determine the current state of economic well­
being—we have for the most part had to content ourselves with theories
which change with changing fashions in psychology, with guesses de­
rived from data on population, total sales, and general price movements.
We have long had Engel’s 7 theory of the changes which occur in the
percentage of expenditure allotted to food with changes in income, but
we have required data on the demand of families of given size, com­
position, and occupation for specific kinds of food. We have had
Veblen’s 8 penetrating analysis of the reasons why expenditures are
made for certain goods and services not essential to physical well­
being, but we have not known at what income level a family of a given
type will be most likely to enter the market for luxury goods.
In recent years specific demands for such information have been
partially met by the development of research agencies within trade
associations and large business units, which have devoted substantial
portions of their annual budgets to studies of consumer preference for
their own particular commodities. Such studies have supplemented
the more general investigations of consumer purchases made by
Government and private research agencies. None of them has, how­
ever, been comprehensive enough to provide an adequate picture of
consumption according to income in the United States.
In this investigation, expenditure data have been secured from an
approximately equal number of families in each comparable group,
or “cell,” a ceil comprising families of similar occupation, family
composition, and income level. They were obtained from 15 income
classes in the metropolitan areas, beginning with families having $500
i Engel, Ernst. Die Produktions und Konsumtions-Verhältnisse des Königreichs Sachsen. Zeitschrift
des Statistischen Bureaus des Königlichen Sächsischen Ministeriums des Innern, Nos. 8-9, November 22,
1857, pp. 27-29.
8 Vehlen, Thorstein. The Theory of the Leisure Class; An Economic Study in the Evolution of Institu­
tions. New York, Macmillan Co., 1899.


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

Consumption Habits of American People

613

for the year and extending to families having $10,000. Seven occupa­
tional groups were differentiated—the wage earner, clerical, salaried
professional, salaried business, independent professional, and inde­
pendent business, and the group not dependent on current employ­
ment. The classification by size and composition of family used in the
expenditure data distinguished five family types in most of the com­
munities covered—seven in the East North Central area. These
family types varied from those which contain only the husband and
wife to families of 7 or 8 persons. The collection of the expenditures
data was planned in this way in order that the number of schedules
secured from families of each type, and occupational group, at each
income level, would be large enough to provide reliable averages.
If the expenditure data had been secured from families chosen at
random there would have been more schedules than were necessary
from the wage earner and clerical groups, and not enough from the
business and professional groups. There would have been an ample
representation of families of husband and wife only, but an inadequate
representation of families with husband, wife, and three to four
children under 16 years of age.
The use of a “controlled” sample has resulted in securing data which
make possible comparisons of consumption from one income level to
another with the distribution of family types and occupations as it
actually exists today, and, in addition, to estimate what changes in
consumption would occur with a change in the distribution of families
by income.
The study of consumption was correlated with an extensive study
of the income distribution of a large number of families selected at
random. The data secured in this part of the investigation were sorted
by income, nativity, and occupational group, with the result that we
have a composite picture of the consumption of the family type and
nativity groups studied in each city. The income data, which were
secured as a means of integrating the consumption data secured into
averages at each income level covered, are of considerable value in
themselves, and will provide one of the most important products of
the investigation.
In each of the communities surveyed, random samples wrere taken,
the sampling ratio ranging from 4 percent of the family population in
New York, and 10 percent in Chicago, up to 100 percent in the farm
and village communities and a few of the smaller cities. In the urban
study approximately 300,000 families supplied the information needed
for filling out the short “family schedule,” giving information on
amount and sources of income; occupations of employed family
members; the membership of the family; home tenure, type of dwell­
ing, and the rent or rental value of the dwelling. Similar information
was secured by the Bureau of Home Economics for approximately

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

Monthly Labor Review—March 1938

614

80,000 town, village, and farm families. Certain criteria of eligibility,
as already noted, were set up for the families to be scheduled in order
to give greater clarity to the findings. From the random sample
there was selected a smaller group, totaling approximately 60,000
families for the combined rural-urban study, to provide data on family
expenditures. The expenditure schedules obtained from this “con­
trolled” sample, supported by detailed check lists for all items of
food, clothing, and housefurnishings, have provided the information
covering the quantities of goods and services purchased, and the
amounts paid for specific commodities, as well as data on saving and
borrowing in the year covered by the schedule. In building up the
consumption pattern for the community represented by the random
sample, averages representing each of the cells in the controlled
T able 1.— Size of Random Sample, and Median Family Income
[Preliminary figures]
Median family income 1
City

Metropolises:

Large cities:

Middle-size cities:

Small cities:

Gastonia, N. C ___!_ _____
_______
Gastonia, N. C. (Negro)_________ _
Billings, M ont____________________ _ __

___

families
scheduled All families

Relief
families 2

14,266
1,262
28,515

$1, 814
837
1, 634

$739
537
379

$2,015
1, 350
1, 798

9, 402
8,446
2,049
14, 323
5, 527
11, 293
8, 574
15,844

1,400
1, 601
695
1,691
549
1,552
1, 527
1,497

597
593
569
558
404
541
566
550

1, 554
1,751
1,031
1, 879
759
1,733
1,705
1,654

3, 973
2,786
5, 566
2,864
2,030
4,715
2,294
5, 384
3, 370
5,925
6,517
3, 510
6, 004
3,336
3,693
3,422

1,388
1,233
1,512
1,203
1,400
1,859
548
1,402
444
1,084
1,148
1,606
1, 245
1,249
1,178
1, 202

653
579
454
672
732
663
338
480
338
515
416
609
570
673
443
536

1,468
1,486
1,657
1,459
1,508
1,975
636
1, 533
567
1,279
1,315
1,817
1,517
1, 512
1.387
1,477

1,792
1,600
3,190
2, 521
2,116
1,074
1,068
1,066
1,163
2, 336
517
1, 550

1,283
1,230
1,136
1,036
1,152
1,598
1,334
1,653
392
1,071
469
1,838

537
443
539
374
( 549
i ¡791
'630
475
262
450
356
528

1,449
1,508
1,303
1,378
1 1 Cl, 322
1, 690
1, 529
1,802
460
1,166
531
1,947

Nonrelief
families

1 Includes imputed income from owned homes; that is, the excess of estimated rental value of owned
homes over estimated money expense.
2 Includes families on relief at any time during the year; however, income received as direct relief in cash
or in kind is not included.


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

Consumption Habits of American People

615

sample are given a weight corresponding to the number of families
of the given type which occurred in the random sample. For some
of the rarer cells, the random sample alone did not yield enough cases
to provide the necessary expenditure schedules for families of the
required characteristics. In such cases families of the needed types
were secured in a special “stratified sample” secured from professional
listings, or from particular neighborhoods in which families of the type
desired were known to reside. These stratified samples were not, of
course, combined with the frequencies established in the random
sample.
T able 2.— Average Size of Family and Average Number of Earners Per

Family , 1935-36
[Preliminary figures]
Average number of persons
per family

Average number of earners
per family 1

Cities
All fam­ Relief Nonrelief All fam­ Relief Nonrelief
ilies
families 2 families
ilies
families 2 families
Metropolises:
New York___ _ _
New York (Negro)-. . .
Chicago............... ...
Large cities:
Providence, R. I _______
Columbus, Ohio_______ . .
Columbus, Ohio (Negro)___
Atlanta, Ga_______ _
Atlanta, Ga. (Negro).. .
Omaha, Nebr______
. .
Denver, Colo____ _
Portland, Oreg_____ ____
Middle-size cities:
Muncie, Ind__________
New Castle, Pa______ .
Springfield, 111____________
Haverhill, Mass__ _
New Britain, Conn . . . . . .
Columbia, S. C__
Columbia, S. C. (Negro)___
Mobile, Ala_________
Mobile, Ala. (Negro)___
Dubuque, Iowa____
Springfield, Mo___________
Butte, M ont_____ .
Pueblo, Colo______ . .
Aberdeen-Hoquiam, Wash___
Bellingham, Wash___
Everett, Wash_____ . .
Small cities:
Beaver Falls, Pa.......
Connellsville, P a______ . . . .
Logansport, In d _____ _
Mattoon, 111.................
Peru, Ind_________ .
Wallingford, C onn... .
Willimantic, Conn_____
Albany, Ga________
Albany, Ga. (Negro)________
Gastonia, N. C ......... .
Gastonia, N. C. (Negro)___
Billings, Mont___

3.6
3.6
3.6

4.1
3.9
4.3

3.5
3.2
3.5

1.17
1. 23
1.20

0. 94
.93
.98

1. 21
1.46
1.22

3.7
3.6
3.7
3.8
3.9
3.6
3.4
3.2

4.5
4.4
4.1
4.6
4.3
4.3
3.9
3.6

3.6
3. 5
3.5
3.6
3.7
3.5
3.3
3.1

1.16
1. 29
1.31
1. 33
1. 64
1.22
1.21
1.19

1. 06
1.17
1.18
1. 27
1. 60
1.19
1.14
1.15

1 18
1. 30
1.39
1. 34
1. 67
1. 22
1.22
1. 20

3.6
3.7
3.6
3.7
3.5
3.9
4.0
4.1
3.7
4.0
3.6
3.5
3.5
3.5
3.5
3.5

4.3
4.2
4.4
4.3
4.2
4.6
4.5
4. 7
4.2
4.6
4.2
3.8
3.8
3.8
3.7
3.9

3.6
3.6
3.6
3.5
3.4
3.8
3.9
4.0
3.6
3.9
3.5
3.4
3.4
3.4
3.4
3.4

1.26
1.09
1. 21
1.31
1.13
1. 34
1. 76
1.34
1. 58
1.19
1.24
1.10
1.12
1. 29
1.15
1.15

1.19
1. 05
1. 03
1.26
1. 08
1. 58
1. 82
1. 34
1.44
1.13
1. 22
1.10
1.04
1. 25
1.03
1.10

1. 27
1.10
1 24
1. 32
1.14
1. 32
1. 75
1. 34
1.62
1.20
1.24
1.10
1.14
1. 30
1.19
1.16

3.8
4.2
3.6
3.8
3.6
3.4
3.6
4.0
3.7
4.4
3.8
3.5

4.4
4.6
4.3
4.4
4.2
4.3
4.2
4.8
4.0
4.9
4.5
4.2

3.6
4.0
3.5
3.6
3. 6
3.3
3.5
3.8
3.6
4.3
3.6
3.5

1.22
1.16
1.26
1.23
1.20
1. 22
1.31
1. 37
1.84
1.60
1.77
1. 25

1.20
1.10
1.20
1. 17
1.15
1. 35
1. 36
1. 56
1.81
1. 61
1.72
1. 25

1.23
1.18
1.27
1.25
1. 20
1.21
1.30
1.34
1.85
1.60
1.78
1.25

1 Includes all persons with any money earnings during the year.
2 Includes families having been on relief at any time during the year.

46585— 38 ----- 4


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

Monthly Labor Review—March 1938

616

The results from this study will be published in three series of
bulletins, the first covering data on income, occupation, and family
composition secured in the random sample, the second covering sum­
maries of family expenditures and savings, and the third giving the
details of family expenditures for specific commodities.
Tabulation of the data from the random sample on the distribution
of native white and native Negro families by income, family type, and
occupation has been completed, and the 8 tables which follow sum­
marize the data at present available for 32 cities. All the data are
for native white or native Negro families, including both husband
and wife.
T a b l e .3 . — Percentage

Distribution of A ll Families by Income Groups, 1935-36
[Preliminary figures]
Percentage distribution of all families by income groups

Cities

Metropolises:
New York_________
New York (Negro).-Chicago______ _____
Large cities:
Providence, R. I ____
Columbus, Ohio-----Columbus, Ohio (NeAtlanta, Ga_. ------Atlanta, Ga. (Negro)
Omaha, Nebr____ .
Denver, Colo_______
Portland, Oreg_____
Middle-size cities:
Muncie, Ind_______
New Castle, P a.........
Springfield, 111------Haverhill, Mass____
New Britain, Conn...
Columbia, S. C_____
Columbia, S. C. (NeMobile, Ala_______
Mobile. Ala. (Negro).
Dubuque, Iowa____
Springfield, Mo ---Butte, M ont_______
Pueblo, Colo____
Aberdeen - Hoquiam,
Wash____________
Bellingham, Wash__
Everett, Wash........ .
Small cities:
Beaver Falls, Pa____
Connellsville, P a____
Logansport, Ind.........
Mattoon, 111________
Peru, Ind___ ____—
Wallingford, Conn _
Willimantic, Conn..
Albany, G a .............. .
Albany, Ga. (Negro).
Gastonia, N. C_____
Gastonia, N. C. (Ne-

$5,000
$0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 and
Re­
$3, 499 -$3,999 -$4,999 over
lief i -$499 -$999 $1,499 -$1,999 -$2,499 -$2,999 —

16.1
43.7
9. 5

1.6
.8
2.9

6.5
11.2
10.5

14.9
21.9
19.5

18.4
13.2
20.9

14.6
4.8
15.6

10.2
1.9
7.6

5.9
1.3
4.7

3.4
.6
3.0

3.3
.2
2.7

5.1
.4
3.1

12.9
12.0

3.3
1.8

15.0
11.3

23.4
20.8

17.7
19.7

10.6
13.0

5. 6
7.8

3. 7
4.9

2.2
2.9

2.0
2.7

3. 6
3.1

39.8
13.4
33.0
14.3
13.8
13.4

3.4
2.2
13.1
1.5
2.5
3.3

25.1
11.9
35.7
10.9
12.3
12.3

20.6
15.7
11.4
21.3
20.2
21.3

7.3
17.7
3.5
19.0
18.3
20.6

2.6
14.0
1.9
13.3
12. 5
13.0

.6
8.5
.7
7.5
7.0
6.5

.3
5.5
.3
4.3
4.3
3.3

.2
4.1
.1
2. 7
2.6
2.1

(2)
3.6
.2
2. 5
3.0
2.1

.1
3.4
.1
2. 7
3.5
2.1

9.2
21.1
10.3
22.8
11.6
8.3

2.5
2.2
3.3
4. 1
1.2
1.3

14.9
13.6
15.3
14.6
14.5
12.7

29.9
24.2
20.7
21.7
28.2
14.6

20.4
17.2
17.1
15.6
20.1
18.0

10.4
10.3
12.4
10.1
11.6
13.5

5.8
5.1
7.3
5.2
5.1
9.5

2.5
2.4
5.0
2.6
2.8
6.9

1.6
1.3
3.0
1.0
1.9
5.0

1.4
1.1
2.9
1.2
1.5
4.7

1. 4
1. 5
2. 7
1. 1
1. 5
5. 5

24.6 41.9
4.8 19.1
32.3 34.3
4.8 20.4
7.7 21.8
6.4
.7
2. 5 13.2

8.5
20.2
6.8
22.8
20.5
20.3
21.9

3.0
17.3
1.6
15.1
16.5
22.2
19.4

1.4
11.0
1.5
8.1
9.1
13.8
10.6

.4
6.5
.2
3.7
4.7
7.2
4.0

.2
4. 1
.1
2.1
2. 2
4. 5
2.3

(2)
2.2
(2)
.9
1. 4
2.2
1.2

(2)
2.5
(2)
1.0
1.1
1.8
.9

.i
2.8

12. 5
15.6
12.9

23.4
25.1
23.1

17.1
16.6
18.2

10.4
8.5
9. 1

5.0
4.2
4.7

2.4
2.4
2.2

1. 3
1.1
1.0

1. 2
.9
1.0

1. 7
1.0
.9

2.4 14.6
3.5 14.1
6.5 21.5
5. 5 17.9
5.7 21.0
1.3 12. 6
3.2 16.2
2.4 14.3
46.3 28.0
5.7 29.1

27.7
20.5
22.1
18.5
23.1
23.2
21.8
16.2
4.9
24.4

18.4
17.9
17.6
14.0
15.8
21. 2
16.7
18.7
1.5
13.4

9.9
10.0
7.9
8.7
9.6
10.9
10.9
12.9
.8
6.6

4.6
5.0
4.2
4.4
4.8
7.1
4.8
8.3
.5
2.9

3.1
2.6
2.6
2. 6
2.2
3.3
3.6
5.6
.1
2.2

1.8
1.6
.9
1.4
1.1
3.3
2.0
3.9

1.2
1. 1
.6
.8
.6
2.8
1.7
2.9

1.3

1.4

1.0
.8
.7
.9
.3
6.0
3. 5
3.6
.1
2. 0

38. 5
1.7

5.8
17.7

1.6
20.5

.4
15.2

9.9

7.8

2.8

3.5

4.1

19.9
9.5
23.2
20.2
14.0
18.2
23.4
22.9
20.3
23.9
15.3
22.9
15.4
25.3
15.8
8.3
15.6
11.2
17.8
11.0

15 5
Billings, M ont______ 9.1

2.1
4.3
3.0

38. 2
7.7

1Includes families having been on relief at any time during the year.
2 Less than 0.05 percent.


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

.9
1.0
2. 7
.6

617

Consumption Habits of American People

T able 4.— Median Income of Nonrelief Families for Each Occupational Group, 1935-36
[Preliminary figures]
Median income for nonrelief families by family occupational
group1
Cities

Metropolises:
New York..... .......................
New York (Negro)_______
Chicago............................ .....
Large cities:
Providence, R. I ........ _........
Columbus, Ohio..... ...........
Columbus, Ohio (Negro)__
Atlanta, Ga........... ................
Atlanta, Ga. (Negro)............
Omaha, Nebr____________
Denver, Colo____________
Portland, Oreg___________
Middle-size cities:
Muncie, Ind_____________
New Castle, Pa.....................
Springfield, 111___________
Haverhill, Mass__________
New Britain, Conn_______
Columbia, S. C.....................
Columbia, S. C (Negro)___
Mobile, Ala................ ...........
Mobile, Ala. (Negro)______
Dubuque, Iowa____ ______
Springfield, Mo__________
Butte, M o n t.____________
Pueblo, Colo.........................
AberdeeU-Hoquiam, Wash...
Bellingham, Wash________
Everett, Wash___________
Small cities:
Beaver Falls, Pa__________
Connellsville, Pa......... .........
Logansport, Ind__________
Mattoon, 111_____________
Peru, Ind_______________
Wallingford, Conn________
Willimantic, Conn________
Albany, Ga............................
Albany, Ga. (Negro)______
Gastonia, N. C___________
Gastonia, N. C. (Negro)___
Billings, M ont____________

All
non­
relief
fami­
lies

Profes­ Busi­
sional
ness

Profes­
sional

Busi­
ness

$2,015
1,350
1, 798

$2,985
1,833
2,515

$3,100
2,917

(2)

$3, 789
1, 688
3, 019

$2,181
1, 375
1, 795

$2,109
1,984
1,934

$1, 721
1,266
1, 557

1, 554
1,751
1, 031
1,879
759
1, 733
1, 705
1, 654

2, 517
2,521
1,350
2,489
1, 625
2,369
2,378
2,171

2,831
2,728
1,179
3, Oil
1, 750
2,803
2,885
2,600

3,781
2,913
1,667
3,170
2,250
3,170
3,239
2,663

1,638
1, 626
969
1, 706
760
1,736
1, 741
1,546

1,703
1, 897
1,486
2, 033
1,598
1,887
1,824
1, 796

1,324
1,496
1,009
1,475
736
1,423
1,341
1,445

1,468
1,486
1, 657
1,459
1, 508
1,975
636
1, 533
567
1,279
1,315
1,817
1, 517
1, 512
1,387
1,477

2,326
2,208
2,656
2, 250
2, 063
2,729
1,045
2,052
875
1,975
2,008
2,538
1,836
1,902
1,804
1, 900

2,349
2,413
2, 766
2,240
2,500
2,972

3,000
3,250
3, 361
2,875

1, 517
1, 588
1, 584
1,801
1,614
2,173
740
1, 530
554
1,341
1,216
2,125
1,440
1, 692
1,444
1,528

1,645
1,648
1, 859
1,652
1, 629
2,028
1,094
1, 712
1,350
1, 592
1, 563
1,881
1,698
1,719
1,609
1, 674

1,352
1,354
1,329
1, 264
1,334
1,359
659
1, 208
573
1,160
1,164
1, 569
1, 378
1,363
1,276
1, 363

1,449
1,508
1,303
1,378
1,322
1,690
1,529
1,802
460
1,166
531
1,947

2.139
2,042
1,644
1,839
1,841
2,806
2,688
1,958
771
2,000
1,125
2,490

1, 606
1,344
1, 337
1,315
1,250
2,042
1,969
1,664
607
1,521

1,741
1, 648
1,480
1, 568
1,350
1,810
1,696
1,873
972
1,604

1,316
1,407
1,239
1,285
1,293
1,444
1,262
1,468
442
1, 003
547
1,564

Salaried

«

2,544
(2)

2,420
2, 266
2,859
2, 238
2,412
2,185
2,182
2,250
2,196
1,944
2,229
1,964
3, 063
2, 422
2,684
(2)

2,567
( 2)

2,863

Independent

(2)

4,375
(2)

3, 563
2,125
2,667
2,454
3,313
2,656
2,750
2, 375
2,731
3,125
(2)

1,813
2,880
( 2)

n

( 2)
(2)

1,250
3, 300
( 2)

3,438

(2)

2,264

Cleri­ Wage
cal
earners Others

(2)

2,041

$828
(2)

731
731
906

( 2)

929
500
949
1,023
677

731
844
646
1,080
(2)

1,450

( 2)

703
( 2)

439
631
940
625
938
644
531

781
727
775
600
575
1,450
1,000
( 2)
( 2)
( 2)
( 2)

911

1 Families were classified according to the occupational group from which the major part of their earn­
ings were derived. Varying percentages of these groups received relief durine the year. The median in­
comes, therefore, are not typical of the entire occupational group but only of those which did not receive any
form of relief.
1 Medians not computed for less than 25 cases.


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

Monthly Labor Review—March 1938

618

T able 5.— Percentage Distribution of Nonrelief Families by Occupational Groups,

1935-36
[Preliminary figures]
Percentage distribution of nonrelief families by occupational
groups
Cities

Metropolises:
Large cities:

Middle-size cities:

Small cities:

1 Less than 0.05 percent.


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

Independent

Salaried

Cleri­ Wage Others
earners
cal

Profes­
sional

Busi­
ness

Profes­
sional

Busi­
ness

6.5
3.4
5.6

6.3
.6
6.0

2.8
1.3
2.0

8.8
7.3
8. 5

29.8
13.1
30.5

43.5
73.6
45.4

2.3
.7
2.0

5.7
7.3
2.6
5.1
2.6
4.8
7.6
6.3

8.9
8.7
1.5
11.6
.5
9.2
9.0
7.6

2.0
2.1
1.3
2.3
.6
2.2
2.9
2.7

9.6
10.8
5.8
10.1
6.8
9. 3
14.4
12.6

21.6
24.1
4.8
32.0
4.0
31.1
25.7
26.1

49.4
44.6
82.7
37.0
84.7
41.3
36.7
41. 1

2.8
2.4
1.3
1.9
.8
2. 1
3. 7
3.6

4.9
4.5
5.9
3.7
7.8
6.9
3.6
3.4
2.0
3.4
4.3
5.9
4.8
3.8
4.8
4. 1

6.4
6.1
9.0
6.7
8. 7
16.0
.5
11.5
(')
5.8
6.0
7.9
6.8
7.2
7.0
6.0

1.3
2.4
2.3
1.5
1.0
3.3
.7
1.4
.3
1.5
2.0
2.1
1.5
1.5
2.4
2.4

10.2
11.9
11.3
13.7
7.0
10.1
5.1
12.1
6.0
10.9
12.3
9.9
11.1
13.1
14.2
13.4

14.3
16.7
24.9
16.1
20.8
28.7
2.2
26.8
2.9
19.8
20.7
23.0
19.9
15.7
15.7
15.7

61.2
55.4
44.0
53.4
53.4
34.0
87.2
43.1
87.9
54.3
51.1
49.3
53.5
57.4
51.7
55.5

1. 7
3.0
2.6
4.9
1.3
1.0
.7
1.7
.9
4.3
3.6
1.9
2.4
1.3
4.2
2.9

6.5
5.2
3.6
2.2
3.7
5.8
4.6
3.1
2. 6
2. 1
2.5
5.5

4.5
4.6
4.9
5.5
6.2
8.4
9.6
13.3
.2
5.4
0)
12.6

1. 7
1.9
1.6
1.4
1.3
2.1
1.8
1.8
.6
1.7
.7
2.2

9.8
9.1
12.4
13.5
9.9
9.8
13.1
16.4
4.8
9.7
4.3
15.2

16.5
19.7
16.2
17.5
14.3
16.5
16.1
27.8
3.0
14.9
.7
27.4

59.2
55.6
57.6
56.2
60.9
52.5
50.8
35.3
87.4
65.5
90.4
34.1

1.8
3.9
3.7
3.7
3.7
4.9
4.0
2.3
1.4
.7
1.4
3.0

Consumption Habits of American People
T a b l e 6 . — Average

619

Size of Family, and Percentage Distribution of All Families by
Family Types, 1935-36
[Preliminary figures]

Cities

Metropolises:
New York_________________________
New York (Negro)________________
Chicago_______ ______ ______ ____
Large cities:
Providence, R. I__............ .......................
Columbus, Ohio____________________
Columbus, Ohio (Negro)_____
Atlanta, Ga_______________________
Atlanta, Ga. (Negro)________________
Omaha, N e b r __________ ______ ___
Denver, Colo. ____________________
Portland, Oreg_____________________
Middle-size cities:
Muncie, Ind____________ _________
New Castle, Pa____________________
Springfield, ill____________________
Haverhill, Mass__________ _______
New Britain, Conn_____________ __
Columbia, S. C....... ........................
Columbia, S. C. (Negro)____________
Mobile, Ala_______________________
Mobile, Ala. (Negro).... ................ ......
Dubuque, Iowa___________________
Springfield, Mo_________________
Butte, Mont________________ _
Pueblo, Colo________________
Aberdeen-Hoquiam, Wash_____
Bellingham, Wash______________
Everett, Wash. __________________
Small cities:
Beaver Falls, P a__________________
Connellsville, P a_______ ____ _____
Logansport, Ind. _ ____________
Mattoon, 111___________
Peru, Ind__
_ __________
Wallingford, Conn_________
Willimantie, Conn________
Albany, Ga________ ______
Albany, Ga. (Negro)____________
Gastonia, N. C ......... .........................
Gastonia, N. C. (Negro)...
Billings, M ont_______________

Aver­ Percentage distribution of all families by family
type 1
age
number of
persons
Other
per T ype T ype T ype T ype T ype T ype T ype fami­
2
1
4
3
6
5
7
family
lies

3.6
3.6
3.6

24.2
39.4
25.4

20.5
12.4
19.0

14.7 18. 5
8.9 15.9
13. 1 20.2

3.7
3.6
3.7
3.8
3.9
3.6
3.4
3.2

26.7
30.4
36.2
24.4
31.8
27.6
32.6
36.0

17.5
14.7
10.8
16.7
11.1
16.7
17.6
17.0

12.9
9.9
6.8
10.5
6.5
12.5
11.3
10.5

3.6
3.7
3.6
3.7
3.5
3.9
4.0
4.1
3.7
4.0
3.6
3.5
3.5
3.5
3.5
3.5

29.0
23.4
26.9
27.1
26.9
20.6
26.8
19.8
34.3
21.7
28.6
29.8
30.4
28.9
29.1
28.9

15.7
17.5
16.0
16.6
22.8
16.5
16.4
14.6
13.7
13.4
16.1
18. 2
17. 4
19.4
18.4
18.1

3.8
4.2
3.6
3.8
3.6
3.4
3.6
4.0
3.7
4,4
3.8
3.5

24.2 15.3
17.8 14.9
30.3 13.2
26.2 14.6
29.0 14.4
30.7 18.0
30.1 14.7
20.5 17.0
35.3 13.4
15. 6 16.0
33.0 15.7
27.9 20.1

8.0
5.3
9.0

7.2
7.4
6.5

3.1
5.7
3.3

3.8
5.0
3.5

16.8
22.8
19.2
21.7
20.9
19.7
21. 5
22.8

8.1
8.4
7.7
10.8
10.0
8.6
7.1
5.9

9.2
6.8
7.9
6.8
6.2
7.9
5.6
4.3

4.7
4.1
6.2
5. 1
7.5
4.2
2.3
1.6

4.1
3.4
5.2
4. 0
6.0
2.8
2. 0
1.9

11.8
12.1
10.5
11.4
15.5
12.8
8.2
11.6
7.7
11.6
11.0
12.9
12.3
13.8
12.8
13.1

20.5
21.1
23.2
20.3
14.8
21.1
17.1
20.8
17.9
20.3
21.1
19.4
18.9
19.1
19.6
20.7

8.0
9.3
8.7
8.3
6.4
11.2
9.9
12.0
8.0
10.1
9.2
7.6
7.6
7.7
8.4
7.5

7.3
8.9
7.1
7.5
8.3
7.5
7.6
8.4
7.3
9.3
6.4
6.9
7. 6
6.1
6.4
6.4

4.7
4.7
4.0
4.8
3.0
5.8
7.8
7.1
6.6
7.6
4.8
2.9
3.7
3.0
2.7
3.1

3.0
3.0
3.6
4. 0
2.3
4. 5
6.2
5. 7
4. 5
6.0
2.8
2. 3
2.1
2. 0
2.6
2.2

11.5
10.6
8.2
9.8
10.2
14.0
12,5
11.7
6.8
13.3
6.6
10.7

22.7
21.6
25.1
20.4
21.2
19.1
20.0
20.5
18.6
14.6
15.5
19.4

9.7
10.7
8.8
10.9
9.1
6.5
7.6
11.7
9.4
12.3
8.7
8.8

7.4
10.3
6.3
7.8
7.9
6.8
6.9
8.2
6.0
12.5
8.7
6.3

4.8
8.1
4.7
6.5
5.0
2.4
5.7
5.9
6. 3
10.1
7.0
3.6

4. 4
6.0
3.4
3.8
3.2
2. 5
2.5
4.5
4.2
5. 6
4.8
3.2

1 Family type:
Type 1: Two persons—husband and wife only.
Type 2: Three persons—husband, wife, 1 child under 16 and no others.
Type 3: Four persons—husband, wife, 2 children under 16, and no others.
Type 4: Three or 4 persons—husband, wife, 1 person 16 or over, and 1 or no other person regardless of age.
Type 5: Five or 6 persons-—husband, wife, 1 child under 16, 1 person 16 or over, and 1 or 2 other persons
regardless of age.
Type 6: Five or 6 persons—husband, wife, 3 or 4 children under 16, and no others.
Type 7: Seven or 8 persons—husband, wife, 1 child under 16, 4 or 5 other persons regardless of age.
Other: Families of 5 or more persons except those included in type 5 through type 7.


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

620

Monthly Labor Review—March 1938

T able 7.— Percentage of Nonrelief Home-Owning Families and Average Monthly Rent of

Renting Families, 1935-36
[Preliminary figures]

Cities

Metropolises:

Large cities:

Middle-size cities:

Small cities:

1 M onthly rent at the end of the reporting year.


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

Percent Average monthly rent of rent­
ing families 1
of home­
owning
families
All fam­
Belief Nonrelief
(non­
ilies
families families
relief)

18.5
6.3
22.3

$39.50
31.70
32.80

$24.91
25.70
18.10

$42. 71
36.60
34. 60

22.4
39.9
25.1
34.1
24.1
47.5
41.3
50.6

24.80
24.40
14.70
23.30
10.70
24.90
25.20
20.40

15.20
15.40
12.50
12.60
9.20
14.60
15.00
12.20

26.50
26.10
16.40
25.60
11.30
27.40
27.40
22.20

44.1
45.6
43.4
40.0
18.5
35.8
22.3
38.9
26.4
45.2
51.3
42.3
49.5
43.4
59.4
52.0

19.40
19.70
25.00
23.50
22.40
24.50
9.10
18.20
8.00
18.00
15.20
22.20
17.00
15.70
14.60
16.30

11.80
14. 30
12.60
18.90
15.20
15.40
8.10
11.30
7.20
12.00
8.40
14.60
11.30
10. 80
9.40
11. 50

20.40
21.70
27.00
25.40
23. 50
25. 60
9.30
19.10
8.30
20.00
17.00
24.20
19.50
17.40
16.40
18.20

42.0
42.9
47.0
53.5
50.5
36.3
34.6
24.0
19.0
19.6
26.1
44.5

18.90
18.00
13.90
14.10
13.30
23.80
19.60
18.60
5.80
10. 60
6.70
28.20

12.40
12.20
8.10
9.10
8.60
16.00
13.60
10.40
4.80
7.60
6.00
15.80

20.40
20.40
15.40
16.90
14.60
24.70
21.00
19.90
6.00
11.00
6.90
29.90

Consumption Habits of American People
T a b l e 8 . — Rent as

621

a Percent of Family Income for Nonrelief Renting Families, by Income
Groups, 1935-36
[Preliminaiy figures]
Rent as percent of family income, by family income groups

Cities

Metropolises:
New York_____ ______ ___________
New York (Negro)__________________
Chicago_____ _________ ____________
Large cities:
Providence, R. I _____________
. . ..
Columbus, Ohio_____ _____________
Columbus, Ohio (Negro)____ ________
Atlanta, G a . . _____________________
Atlanta, Ga. (Negro)___________ _____
Omaha, N ebr______________________
Denver, Colo..______ _______________
Portland, Oreg_____________________
Middle-size cities:
Muncie, In d __________ _____ _______
New Castle, P a_____________________
Springfield, 111_______ _____ ______
Haverhill, Mass.........................................
New Britain, Conn....................................
Columbia, S. C _______ _____ ___ ____
Columbia, S. C. (Negro)..........................
Mobile, Ala___________ ____________
Mobile, Ala. (Negro)..................... ...........
Dubuque, Iowa........... - ............................
Springfield, Mo_____ _______________
Butte, M ont...... ............................... ........
Pueblo, Colo_______________________
Aberdeen-Hoquiam, Wash___________
Bellingham, Wash____ ___ ___________
Everett, Wash______ _______________
Small cities:
Beaver Falls, P a________________ __
Connellsville, P a____________________
Logansport, Ind____________________
Mattoon, 111___________________ ___
Peru, In d ___________________ _ ___
Wallingford, Conn__________________
W illimantic, Conn___________ ____
Albany, G a ._____ _________________
Albany, Ga. (Negro)________________
Gastonia, N. C______________ _____
Gastonia, N. C. (Negro)____ ________
Billings, M ont_____________________

All
non­
$500- $1,000- $1,500- $2,000- $3,000- $5,000
relief Under
$999 $1,499 $1,999 $2,999 $4,999 and
fami­ $500
over
lies

22.2
30.4
21.5

162.0
87.4
116.4

43.1
43.3
34.8

30.3
34.3
26.3

25.4
27.3
22.6

22.4
22.8
20.0

19.4
21.5
17.1

15.7
10.2
13.4

19.3
17.6
18.9
16.5
18.4
19.0
19.0
16.2

78.5
77.6
42.4
47.2
33.0
65.2
72.3
64.0

28.2
27.5
23.2
22.6
18.5
26.3
27.1
24.3

21.5
21.1
17.5
18.3
14.7
22.0
21.9
18.0

18.5
18.1
13.6
17.4
11.9
19.5
18.9
15.9

17.3
15.4
12.7
15.9
10.6
17.1
16.8
14.1

15.4
13.7
7.4
14.0
8.4
15.1
14.8
12.2

12.2
10 2
0)
11.2
9.6
10.3
10.6
9.7

16.6
17.7
18.9
21.1
17.7
16.3
17.9
15.2
17.2
17.7
15.7
15.2
15.8
13.4
13.8
15.0

54.2
53.4
59.5
67.8
93.0
39.2
27.2
43.1
26.8
67.3
42.2
63.5
54.4
50.0
46.3
52.5

21.0
25.0
26.9
32.5
23.2
19.6
17.0
20.6
15.0
22.4
19.5
28.3
20.9
19.7
19.1
21.6

18.0
19.0
22.0
23.3
19.9
17.6
11.9
16.5
11 0
18.6
15.9
17.0
16.9
14.4
14.3
15.2

15.8
16.6
19.6
19.5
17.5
18.2
12.3
14.5
8.4
16.6
14.1
16.1
15.3
13.4
13.1
14.0

14.1
14.5
17.2
15.9
15.8
16.2
10.2
13.3
7.2
14.4
13.1
14.2
13.6
10.8
11.8
13.3

12.3
12.9
14.5
12.3
13.4
13.9

7. 5
11.7
11.4
9.4
8.3
10.2

10.9
3.4
13.2
11.3
13.0
11.2
9.2
9.8
10.3

8.9
8.0
7.8
7.1
8.4
8.5
9.3

16.2
16.4
14.3
14.9
13.7
16.7
16.6
13.3
15.2
10.9
15.7
18.8

63.2
53.2
39.2
54.8
42.7
64.6
69.7
36.1
20.2
20.0
21.5
77.3

23.0
22.9
17.8
19.9
18.4
26.7
23.3
18.5
12.6
12.0
13.2
32.2

17.7
17.7
14.2
14.8
13.7
21.4
19.0
15.7
8.9
9.6
11.1
23.8

15.8
16.2
13.5
14.4
11.6
17.8
16.1
15.1
7.2
10.0
9.5
20.0

13.4
13.1
11.6
11.9
10.8
15.3
14.3
12.3
8. 4
11.5
0)
17.9

11.5
10.5
8.5
9.5
8.8
12.1
9.9
10.4

7.1
8.1
7.8
6.3
4.4
5.6
7.0
4.7

10.8

8.5

14.3

6.8

1 Insufficient number of cases for computation of reliable percentage.


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

9.5

Social Security

SICKNESS AND MATERNITY INSURANCE IN FRANCE1
A GENERAL social-insurance system covering the risks of sickness,
and maternity, invalidity and old age, and death was established in
France by the law of April 5, 1928, as amended April 30, 1930, and
made effective July 1, 1930. The system was coordinated with the
one which was in effect in Alsace-Lorraine when the territory was re­
stored to French sovereignty, by the decree of July 29, 1937, effective
August 1. The decree provided for the transference of members to
either the local or the general system when a change of workplace takes
them into the territory of the other if the duration of work exceeds
6 months. Insured persons are required to report the change of
workplace within 1 month.
The law provided for two distinct systems—one for commercial,
industrial, and domestic workers, and the other for agricultural work­
ers. One premium covers all the risks, but a certain proportion is set
aside for the sickness and maternity system. On the basis of the ex­
perience gained in the years 1930 to 1935, the system was revised by
decree laws of October 28 and 30, 1935, dealing with industry and
agriculture, which form the present basic law. The chief modifica­
tions effected by the law covering industrial and commercial employees
were the extension of the system to cover persons whose inclusion was
not clear previously, an increase in benefits, and administrative sim­
plification under 15 regional offices instead of 89 departmental offices.
The important subsequent amendments were made in decrees dated
March 19, 1936, and August 26, 1936, the most outstanding changes
being the increase in the maximum cash sickness benefit and further
extension of the system by raising the wage limit of those compulsorily
insured.
The original law provided that voluntary insurance might be taken
out by farmers and agriculturists not covered by compulsory insur­
ance, artisans, small proprietors, nonsalaried intellectual workers, and
in general all persons who, without being on a salary, lived principally
on the products of their labor, if such persons were of French nation­
ality and their earnings did not exceed the limits set for those com1 Reports from Benjamin M. Hulley, American consul, Paris, dated October 11,12,15, 26, and 30, 1937;
and Journal Officiel de la République française, Paris, October 31, November 4, 7, 1935; March 22, August
30, 1936; April 18, October 12, 1937.

622

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

Social Security

623

pulsorily insured. Voluntary insurance was abolished in 1935, how­
ever, owing to the small number applying for such insurance.
The latest report on the operation of the social-insurance system,
covering the years 1934 and 1935, stated that the number of registered
industrial and commercial wage earners on December 31, 1935, was
approximately 10,000,000 and the number of workers in agriculture
and forestry 1,150,000. However, the total number of contributors
to the fund in industry and commerce had remained at approximately
6,400,000 during the years 1933 to 1935, while in 1935 the contributors
in agriculture numbered about 700,000. During 1936 the number of
insured persons paying contributions increased as a result of the
decree law of October 28, 1935, which added certain classes of persons
to those already subject to compulsory insurance. The difference
between the number of persons registered and the number paying
contributions is accounted for by the difficult economic situation and
to a certain extent by the previous ambiguity of the legislative pro­
visions as to coverage, as well as by the fact that there are many dupli­
cations, chiefly owing to the transfer of insured persons from one dis­
trict to another without canceling the record in the previous district.
System for Industrial, Commercial, and Domestic W orkers
COVERAGE

All wage earners of both sexes within certain wage limits are com­
pulsorily insured. The law of 1928 as amended in 1930 fixed the
maximum earnings of industrial workers subject to compulsory
insurance at 15,000 francs per year, or 18,000 francs in cities of more
than 200,000 inhabitants and in certain industrial districts, the limit
being increased according to the number of dependent children up to
a maximum of 25,000 francs. A law passed August 26, 1936, fixed the
maximum wages at 21,000 francs for persons without dependent chil­
dren and at 25,000 francs for persons having at least one dependent
child. Persons receiving less than 1,000 francs (formerly 1,500
francs) per year are not subject to insurance. Children who are
going to school, and who are employed for wages at work not prohib­
ited by the Labor Code are not considered as wage earners for the
purpose of insurance, nor are children working at home for their
parents without pay.
A Government bill was introduced in December 1937 providing for
extension of the wage limit for coverage to 30,000 francs, whether or
not a worker has children. A law of December 31, 1937, provided
that the insurance offices should suspend, until Parliament has acted
on the bill, all cancelations of membership in the system for members
whose wages exceeded the former limits.
The uncertainty arising from the definition of wage earner in the 1930
law left in doubt the situation of occasional workers, home workers, and

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

624

Mon thly Labor Review—March 1938

certain other groups. This condition was corrected by the decree law
of October 28, 1935. In addition to workers in industrial and com­
mercial establishments, the system now includes all persons whose
earnings do not exceed the prescribed maximum, whatever the form
and nature of their contract, even if they do not work in the establish­
ment of the employer or the head of the enterprise or if they own part
or all of the tools necessary for their work and it also includes specifi­
cally persons working usually and regularly at home, either alone or
with members of their family; commercial travelers selling nonpatented articles but receiving commissions; hotel, cafe, and restaurant
employees ; drivers of public vehicles ; baggage porters who work under
a contract; and employees of theaters, moving-picture theaters, and
other places of entertainment. Apprentices are subject to insurance,
even if they do not receive cash wages but receive payments in kind
(board, lodging, etc.), if the value of^such payments is at least 1,000
francs.
Foreign wage earners living in France, whose wages are within the
prescribed limits, are insured on the same basis as French workers,
but are not entitled to pensions unless there is a reciprocal agreement
between their country of origin and France. Also, workers from other
countries who reside on the frontier but work regularly in France are
admitted to benefits under the system if a diplomatic agreement pro­
viding for reciprocal insurance rights has been concluded between the
two countries. When a foreign worker returns to his country he is
dropped from the insurance rolls but retains the value of the pension
entered in his individual account.
Compulsory insurance ceases at the age of 60, when the pension
becomes payable, but if the insured person continues at work the
employer alone pays the fee (4 percent).
The act does not apply to persons employed by the State, the
Departments, the communes, and public institutions for poor relief,
merchant seamen, miners and allied workers, and employees of rail­
ways, tramways, and enterprises holding concessions for public gas or
electricity service, all of whom continue to be covered by special sys­
tems. The regulations applying to such persons have been brought
into line, however, with the general social-insurance system by different
decrees, laying down rules for the transfer of workers from one system
to the other. There are approximately 400,000 railway men, 250,000
miners, and 150,000 seamen covered by the special systems.
CONTRIBUTIONS

The insurance system is financed by equal contributions by the
employer and the worker, supplemented by certain contributions by
the State. The total contribution for commercial and industrial
workers and domestic servants amounts to 8 percent of the real wage,

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

Social Security

625

divided equally between the worker and the employer.2 The fraction
of the contribution allotted to sickness and maternity insurance is 4
percent of the insured wage; this fraction is payable in equal shares
by the insured person and the employer.
The real wage on which the contribution is calculated includes the
cash wage, bonuses, and tips, and the value of payments in kind.
Family allowances are not included. The maximum salary or wage
limit for the calculation of contributions is 15,000 francs, i. e., 1,250
francs per month if wages are paid on a monthly basis, 625 francs per
fortnight, 315 francs per week, 50 francs per day, or 8 francs per
hour for days which are shorter than the legal workday. Contribu­
tions are on the basis of 1,500 francs for annual wages between 1,000
and 1,500 francs. Thus the lowest annual contribution is 120 francs
and the highest 1,200 francs. For domestic employees receiving
board, with or without lodging, the annual wages are arbitrarily fixed
by decree, for the calculation of contributions, at 8,400 francs for men
and 4,800 francs for women in cities of 80,000 or more inhabitants,
and 6,000 francs for men and 3,600 francs for women in other com­
munities. Under the original law employees were divided into five
wage classes and a flat rate of daily or monthly contributions was
fixed for each wage class, the contributions amounting to approxi­
mately 8 percent of the average wages of these workers. In addition
to the regular contributions, members in receipt of sickness benefit
are required to pay 20 percent of doctors’ and dentists’ fees and of the
cost of medical appliances and medicines (40 percent, in case of pre­
scriptions costing more than 25 francs).
The employees’ contributions are deducted from their wages by the
employer, who is required to pay the double contribution either at a
post office or by postal order to the regional insurance office. The
deposits are made quarterly and are entered on a leaflet issued to each
insured person, which shows the total remuneration upon which the
contribution is calculated. These leaflets are sent to insured persons
each year by the regional social-insurance office. The regulations also
specify the method of payment of the contributions of home workers
and of workers by the task or on piece work, if they work for one or
several employers. The value of payments in kind and of tips is esti­
mated according to scales established by decree, account being taken
of collective agreements covering this point. Employees receiving
tips are required to pay the employer the amount of their contribu­
tions calculated according to the established scale. For employees
leaving employment during a quarter, the contribution must be paid
during the first 10 days of the following month.
2 The joint contribution rate was reduced from 8 to 7 percent as a temporary measure for the year 1936,
with a maximum contribution of 70 francs per month, but the 8 percent rate is now in effect.


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

626

Monthly Labor Review—March 1938

Every employer having more than 100 insured persons in his em­
ploy is required to deposit each year in the deposit and consignment
fund, as security, an amount at least equal to one-tenth of the con­
tributions of the preceding year. A decree issued by the Minister of
Labor fixes the amount of the bond. This deposit is not required,
however, of those employers who pay their contributions within the
first 10 days of each month for the preceding month.
BENEFITS

Sickness.—Benefits are paid in case of sickness or accident, with the
exception of occupational diseases and industrial accidents, which are
covered by the workmen’s compensation law. Insured persons, their
husbands or wives, and dependent children under the age of 16 are
entitled to general and special medical care, dental care, medicines and
appliances, treatment in hospitals or sanatoriums, necessary surgical
operations, and preventive treatment, as well as the costs of transpor­
tation. Special dental care includes only such functional and thera­
peutic appliances as are necessary to the exercise of a profession.
The provision of such devices is subject to authorization by a special
committee. If the practitioner finds it necessary to call a consultant,
no indemnity will be granted unless the insured person signs a state­
ment that he will be responsible for extra charges until reimbursed by
the fund. If the case is urgent, a notice must be sent to the medical
inspector of the fund by the insured person or by the consultant
within 3 days. Laboratory analyses, serums, or vaccines will not be
paid for unless the medical inspector of the fund considers such outlays
indispensable in a given case of sickness. Cash sickness benefits are
paid to insured persons for a maximum period of 6 months for the
same illness, but are not paid to members of the families of such
persons.
An insured person has free choice of a physician. Medical con­
sultations must take place at the physician’s office unless the condition
of the insured person does not permit.
Cases of sickness must be reported to the fund within 3 days.
Medical benefits are due from the date of illness and are given for a
maximum period of 6 months for the same illness. Any relapse
occurring within 2 months is considered as a continuance of the
original illness.
If the insured person is able to continue at work, but needs preven­
tive care, special benefits may be granted for not to exceed 2 years.
The total medical and pharmaceutical costs may not exceed, for each
day of sickness and beginning with the first medical consultation, 50
percent of the average basic daily wage for the preceding year. In
case of sickness requiring special treatment, however, this maximum
may be exceeded. The costs of hospitalization are paid within fixed

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

Social Security

627

limits by the fund, the insured person being liable for the difference
between the total cost and the amount paid by the fund. This applies
to public hospitals and private hospitals which have made an agree­
ment with the fund. If the insured person enters a noncontract
hospital he may claim reimbursement if the fund does not protest with­
in 8 days.
Cash benefits are paid for each working day lost because of sickness
beginning with the sixth day and from the fourth if there are at least
three dependent children. The minimum cash benefit is fixed at 3
francs per day and the maximum at 22 francs (formerly 18 francs),
varying according to the amount of the contributions paid by the
insured. For example, if the double contribution in the two preceding
quarters was 60 to 84 francs, the daily benefit is 3 francs; if 108 to 123
francs, 5 francs; if 228 to 252 francs, 10 francs; if 324 to 348 francs,
14 francs; if 420 to 444 francs, it is 18 francs; and if over 444 francs,
22 francs. The benefit is increased by 1 franc for each dependent
child under 16 years of age. If the insured person requires hospi­
talization, the cash benefit is reduced by half if he is married and has
no other dependents, by a third if he has one or more dependent chil­
dren or parents, and by three-fourths in all other cases.
Cash benefit is payable only if a minimum number of contributions
have been credited to the insured person’s account. The payment of
these contributions, when they are deducted in advance from wages, is
tantamount to the completion of the qualifying period. As a general
rule, before the insured person can claim benefit he must have had
not less than 30 francs deducted in advance from his wages during the
two calendar quarters preceding the sickness. If the payments
registered during these two quarters do not amount to 30 francs,
reference is made to the four calendar quarters preceding the date at
which the insured person’s claim is considered and the minimum is
then increased to 60 francs. If on the first day of the calendar quarter
preceding sickness, the insured person has been registered for less than
6 months, the contribution he is required to have paid during the
preceding calendar quarter is 15 francs. The effect of these require­
ments is tempered by the fact that in the event of sickness of more
than 1 month, accident, maternity, invalidity, or unemployment, a
prescribed contribution is, under the conditions laid down in the act,
paid or considered to have been paid on behalf of the insured person,
which is sufficient to maintain his right to benefit. This provision as
related to unemployment applies only to persons of French nationality
or of some nationality which is treated on the same footing.
The insured person pays the cost of medical benefits and is reim­
bursed by the fund up to 80 percent of these costs.
M aternity —A woman worker is entitled to medical care and medi­
cines before and after childbirth and to a nursing benefit. The wife of

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

628

Monthly Labor Review—March 1938

an insured worker is entitled to a confinement benefit only. The
insured woman (or her husband) must have paid at least 60 francs
during the four quarters preceding confinement, of which at least 15
francs must have been paid during the first of these quarters. Appli­
cation for maternity leaflets must be made during the first 4 months of
the pregnancy. Consultations with the doctor, of which there must
be at least three preceding the confinement, are recorded on these
leaflets. Attendance at postpartum clinics is also required. The
fund pays 24 francs to assure continuance of the insurance rights of a
woman who stops work for 6 weeks before the confinement. The
cash benefit, paid to insured women only, ranges from 3 to 22 francs
per day according to the amount of contributions and is paid for a
maximum of 72 workdays (12 weeks of 6 days). The benefit is
increased by 1 franc for each dependent child. Each region fixes a
lump sum for medical expenses, varying from 250 to 300 francs; in­
creases are allowed for plural and complicated births. Benefits for
nursing mothers usually amount to 175 francs for each of the first
4 months and 150 francs for the fifth month, or a total of 850 francs.
In case of plural births the benefit is correspondingly increased.
A milk benefit, varying in the different regions from 20 to 60 percent of
the nursing benefit, is paid to a mother who cannot nurse her child,
if the doctor so certifies.
Death benefit.—A death benefit is paid to the spouse or other heirs
of wage earners who have been insured at least 1 year, amounting to
20 percent of the annual wage received in the year preceding illness
or death if at least 60 francs in contributions have been paid during
the year. The death benefit is increased by 100 francs for each de­
pendent child under 16 years of age. Temporary pensions are also
allotted to widows of insured persons who have at least 3 children
under the age of 13 years and to orphaned children under the age
of 13 or under 16 if they are in school, are working under a contract
of apprenticeship, or are crippled or suffering from an incurable
disease.
PENALTIES AND SETTLEMENT OF DISPUTES

Sickness, wounds, or infirmities deliberately caused by the insured
person do not entitle him to a cash benefit, but there is no provision
for the suspension of medical benefit unless the insured person will not
submit to supervision.
A fine of 16 to 500 francs is imposed on anyone guilty of fraud or
false declaration in order to obtain benefits. Various fines and penal­
ties are imposed on administrators or employees of the insurance
systems, doctors, surgeons, etc., for false declarations and other
contraventions of the act.
Disputes other than those concerning the supervision of sick persons
are referred to a district committee, the chairman of which is a police
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Social Security

629

court magistrate or assistant police-court magistrate, the other mem­
bers including an employer and an insured person, assisted by the
clerk of the civil tribunal. Any dispute between an insured person
and his sick fund in regard to his state of health is considered by a
technical committee consisting of the medical practitioner chosen by
the insured person, a doctor nominated by the fund, and a doctor
chosen by the chairman of the civil tribunal.
System for Agricultural Workers
Insurance is compulsory for all wage earners in agricultural and
forestry occupations, rural artisans (blacksmiths, wheelwrights, etc.),
and employees of agricultural unions, cooperatives, insurance societies,
and other organized professional farm groups, if their earnings are
not less than 1,500 francs nor more than 21,000 francs (25,000 francs
if there is one dependent child). Tenant farmers {métayers) ordi­
narily working alone, with the assistance of members of their family,
are subject to insurance if upon becoming tenants they owned less
than 1,000 francs worth of livestock. The total annual earnings of
métayers are considered as equal to those of an agricultural laborer
of the section. The members of the family are compulsorily insured
if they customarily live and work with the head of the family and if
he has other permanent employees and is thereby subject to the work­
men’s compensation law covering agriculture. Agricultural workers
having also another occupation are insured under the agricultural
system if their main occupation is agriculture; in doubtful cases they
are classified as nonagricultural. Insured persons may choose the
fund to which they will belong—mutual agricultural fund, mutualaid society, etc.; if they fail to choose a fund they are insured in the
agricultural section of the departmental fund.
Contributions are based on sex and age, regardless of wages.
The total annual premium, divided equally between employers and
employees, is 240 francs for men, 192 francs for women, and 144
francs for children. In the case of tenant farmers the landowner is
considered to be the employer. Of these contributions 120 francs is
paid to the sickness-maternity fund for each of the three classes,
and 120 francs, 72 francs, and 24 francs, respectively, are credited to
the individual’s account in the retirement fund.
In order to be entitled to sickness benefits, the insured agricultural
worker must have paid at least six monthly contributions in the course
of the two calendar quarters preceding the sickness. If the insured
person has been registered less than 6 months, three contributions
must have been paid during the quarter preceding the sickness.
Maternity benefits are payable if the insured person or the husband
of the claimant has paid 10 monthly contributions during the 4

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

630

Monthly Labor Review—March 1938

quarters preceding the confinement, 3 of which must have been paid
in the first quarter. The sickness and maternity benefits are the
same as those granted to industrial and commercial employees,
except that the daily cash benefit is 7 francs instead of varying
according to the rate of contribution.
Administration of General System
The administration of the social-insurance system is centered in
the Bureau of Social Insurance (.Direction Générale des Assurances
Sociales) under the Ministry of Labor. This central office operates
through 15 regional bureaus located in the principal cities, each
regional office having jurisdiction over 5 to 8 departments. The
regional bureaus handle enrollments, cancelations, transfers, and the
quarterly individual contribution records, and are responsible, gen­
erally, for the effective operation of the system. The administration
of the insurance for the covering of risks and payment of benefits
is in control of departmental, or in exceptional cases interdepart­
mental, funds, the membership of which includes both insured per­
sons who wish to be affiliated to such funds and those who have not
chosen any other institution; funds set up by mutual-aid societies or
unions of such societies or by trade-unions or federations of such
unions, or by voluntary associations of insured persons; and funds set
up by employers’ organizations which have authority to insure such
risks as are financed on the assessment system. All funds of private
origin must, before they begin to operate, be approved by the Minister
of Labor.
These primary funds under the regional offices are of two kinds—
“caisses de repartition” dealing with the risks of sickness and ma­
ternity and “caisses de capitalisation” dealing with the risks of in­
validity, old age, and death. The insured person is allowed to choose
the sickness-maternity fund to which he will belong, but this fund
assigns him to the fund covering the other risks. Membership in a
fund lasts 2 years and is renewable automatically unless the insured
person applies for a transfer. A change of fund is compulsory when
the insured person moves into another area than that covered by the
fund of which he is a member. All the sick funds in a regional dis­
trict are grouped in the regional union. These unions assist the local
funds in case of a deficit and organize preventive services for sick per­
sons seeking to avoid invalidity. In 1935 there were 744 local pri­
mary funds for employees of industry and commerce and 353 for
agricultural workers.
The Superior Social Insurance Council, under the chairmanship of
the Minister of Labor, has general supervision of the administration
of the act. The council is composed of about 60 members consisting

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

Social Security

631

of representatives of the Ministries of Labor, Finance, and Public
Health, the Senate and Chamber of Deputies, the various funds, the
different medical and dental services, and financial and social insur­
ance experts. The term of office of members of the council is 4 years.
The administration of sick funds is in the hands of a committee of
at least 18 members, of whom at least half are insured persons elected
by the general meeting of insured persons, 6 are representatives of
the employers affiliated to the fund, and 2 are medical practitioners
appointed on the proposal of the medical boards.
Statistics of Operation of General System
The latest report available on the operation of the social insurance
system covers the years 1934 and 1935. The amount of contribu­
tions paid into the social-insurance system, however, is reported
through the year 1936.
Contributions by employers and workers covering all the risks
and paid-in stamps, checks, and cash, from July 1, 1930, when the
law became effective, to the end of 1936 were as follows:
F ran cs

1930
1931
1932
1933
1934
1935
1936

(6 months)
_________
_________
_________
_________
_________
_________

1, 496, 736, 174
3, 562, 401, 338
3, 261, 798, 160
3, 271, 276, 895
3, 175, 994, 197
3, 085, 908, 635
2, 635, 000, 000

Of the total amount contributed from 1930 to 1935—17,854,115,400
francs3—7,743,089,486 francs were paid to the “caisses de reparti­
tion,” covering the risks of sickness and maternity. Slightly more
than half the amounts in the above statement were paid by employers
and the balance from employees’ wages. The gradual decrease in
contributions from 1931 to 1935 was due to wage reductions and
total and partial unemployment resulting from the economic crisis,
and the sharp decline in 1936 was largely due to the reduction in the
rate from 8 to 7 percent. It was expected that contributions in 1937
would approximate 4,000,000,000 francs as a result of higher wages,
extension of the system to include more workers, and restoration of
the 8-percent rate.
The expenditures for sickness, maternity, and death benefits totaled
5,582,374,058 francs in the years 1930 to 1935 as shown in table 1.
These figures include payments under the voluntary system for indus­
trial and commercial employees which is no longer in, force.
3 Average exchange rate of franc in 1930 and 1931=3.92 cents; in 1932= 3.93 cents; in 1933=5.03 cents; in
1934=6.57 cents; in 1935=6.60 cents; and in 1936=6.11 cents.
46585— 38------ 5


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

632

Monthly Labor Review—March 1938

Table1.— Disbursements for Sickness, Maternity, and Death Benefits in h ranee, 1930
to 1935
Year

M aternity

Sickness

Francs
1930-31 _________________________
1932
___________________________
1933 ____________________________
1934 1
____ - ___________
1935 1
__________________ ____

714,644,616
875,873,375
935,401, 696
988,983, 615'
1,076,317, 242

D eath

Other

Total

Francs

Francs

Francs

Francs

155, 780,335
178, 084,057
170,144, 342
171,753, 237
168,556, 799

7,016,262
30,460,686
33, 596,860
34,133,108
35,071, 547

662,970
2,011,009
2,145,244
1, 737,058

878,104,183
1,086,429,127
1,141,288,142
1,196,607,018
1,279,945,588

1 Provisional figures.

Supplementary payments on account of family charges from 1930
to 1935 totaled approximately 95,000,000 francs. Expenditures for
supplementary benefits such as nursing bonuses and subventions for
social work rose from 54,000,000 francs for the 2-year period 1932
and 1933 to 44,000,000 francs in 1934 and 48,000,000 francs in 1935.
Table 2 shows the expenditures for the different classes of sickness
benefit by the nonagricultural funds up to the end of 1934.
T able 2.— Payments for Sickness Benefits by Nonagricultural Sickness bunds, 1930

to 1934
Oct. 1,1930,
to
Dec. 31. 1931

Type of benefit

M e d ic a l, etc., b en efits

Sickness:
Medical--------------------------------------------Surgical___________________________
Pharmaceutical_______________________

F ra n cs

1934

1933

1932

F ra n cs

F ra n cs

F ra n cs

Hospitalization and cures. -......... ......... ......
Sanitariums and dispensaries. -------------Indemnities for free medical assistance------

127.615.000
31.835.000
143.346.000
16, 518,000
56.651.000
5,382,000
4, 961,000

130,737,000
37, 593,000
159, 800,000
24.941.000
99.582.000
10,254, 000
21.497.000

139.136.000
40,607, 000
170.322.000
29,133, 000
104.756.000
14.313.000
27.068.000

137, 512,000
49.113.000
182.418.000
34,180, 000
106.556.000
14,972, 000
32.320.000

Total __________ _ - ------------ -------

386,308,000

484,404,000

525,335,000

557,071,000

Maternity:
Medical__________________________
Surgical_____ ________________________
P h a r m a c e u tic a l............................ ...........
Hospitalization and c u r e s .............. ..........
Sanitariums and dispensaries-----------------Indemnities for free medical assistance------

37,942,000
3,987, 000
4,795,000
4, 888, 000
684, 000
477,000

35, 505,000
3, 564,000
5.027.000
9.302.000
827,000
1.490.000

33,877,000
3.315.000
5.102.000
8,939, 000
1,017, 000
1, 828,000

33, 597, 000
3.471.000
5.362.000
10, 526,000
898,000
1.858.000

52,773,000

55,715,000

54,078,000

55, 712,000

284,392,000
6.015.000

303,957,000
8 , 749,000

301,589,000
7,344, 000

297,221,000
9,384, 000

53,929, 000
1.132.000
33, 847,000
1, 622, 000

47, 311, 000
1, 385, 000
49, 803,000
1,845,000

41,177, 000
1,169,000
45,901,000
1,884, 000

39.804.000
1, 261,000
44.177.000
2,194, 000

Total__________ _________

___

C a sh b en efits

Sickness:
Half wages............................ ............. ........ .
Half pension fees------------- ------------------Maternity:
Half wages.....................................................
Half pension fees............................ ........... ...
Nursing bonuses.............. ............ ............ .
M ilk bonuses................................. ................
Death:
Death benefits and other-----------------------

Number of funds----- ---------------------------------

6, 824, 000

28, 980,000

31,327, 000

30, 978,000

387, 761, 000

442, 030, 000

430, 391,000

425,019,000

780

777

747

677

The costs of administration of the system in 1935 were][95,000,000
francs, an increase of 10,000,000 francs over 1934.

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

Social Security

633

The annual State contribution to the general system is 263,100,000
francs, divided as follows:
Francs
Industrial and commercial employees_____ 140, 000, 000
Agricultural employees___________________ 93,000, 000
Pensions---------------------------------------------6, 000, 000
Administration__________________________ 24,100, 000
Total

263, 100, 000

Miners '1 Insurance System
Sickness insurance of miners is effected through mutual-aid socie­
ties (sociétés de secours), which are governed by the law of June 29,
1894, as amended March 21, 1930. Membership in a mutual society
is compulsory for all workers in underground and open mines. The
original law provided that quarries may be included, and a decree of
1920 provided that slate quarries should be covered by the insurance
system when the size or method of working justifies such inclusion. A
decree issued in 1923 provided that the miners’ sickness insurance
might be extended, either compulsorily or on the application of the
parties concerned, to industrial undertakings managed by mine owners
il such establishments obtain their raw materials ordinarily and
mainly from the mine and are operated in the vicinity of the mine.
Extension of the law to such undertakings is made by ministerial
decree in each case.
The law covers wage earners and salaried employees without any
limit as to wages and salary. Members of the families of insured per­
sons may not become members of the funds, although if the rules of
the individual fund so provide they may receive cash benefit, medical
attention, and medicines.
Contributions.—The amount of the contribution is fixed by each
society, but may not exceed 1.75 percent of the wages of the worker,
an equal amount being paid by the employer. The State contributes
to the system. An additional contribution amounting to 0.25 percent
of wages, with an equal payment by employers, may be required by
national decree for the purpose of establishing clinics and medical
stations. The maximum wage or salary on which the contribution
may be assessed is 15,000 francs. The annual contributions toward
the upkeep of the unions are 1 franc per year per member for the
national union and 10 francs for the regional unions.
Benefits.—Each mutual society fixes the amount of sickness and
death benefits for its members.
Administration .—The Ministry of Public Works has general super­
vision of the miners’ mutual-aid societies. The individual societies
are organized on a regional or an industrial basis. The funds are
affiliated in a national union managed by a committee of 18 members.

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

634

Monthly Labor Review—March 1938

Each society is administered by a council of 6 to 18 persons, of whom
two-thirds are elected by the members and one-third designated by the
employer.
Statistics of operation.— In 1936 there were 247,035 members of 196
miners’ mutual societies, located in 40 Departments and with an
average membership of 1,260 persons. Of the total membership
155,682 were underground workers, 88,121 were surface workers, and
the remainder were women. The number working various products
were: Coal, 212,041; iron, 24,306; other metals, 3,782; salt, 776;
bituminous schists and sulphur, 720; and slates, 5,410. The member­
ship of the societies varies considerably: 45 societies have 100 members
or less, 104 societies have 101 to 1,000 members, 40 societies have 1,001
to 9,000 members, and 7 societies have memberships of over 9,000.
In 1936, 137,662, or 56 percent, of the membership were ill, the total
number of days of sickness amounting to 2,793,649 of which 2,599,486
were reimbursed. The average days of paid illness per sick member
were 19. The highest percentage of sickness was found among under­
ground workers.
The total receipts of the sickness-insurance funds during 1936
amounted to 109,167,838 francs, of which 80,034,768 francs were con­
tributed by employers and employees and 7,485,493 francs by the
State, the balance being received from a variety of sources such as
gifts and legacies, fines, interest, etc. The expenditures totaled
90,093,201 francs, of which 42,351,468 francs were expended for
doctors’ fees, medicines, hospitalization, funeral payments, etc., and
40,668,421 francs for cash benefits. The cost of administration was
7,073,312 francs.
Seamen’s Sickness-Insurance System
All registered seamen (inscrits maritimes) in the French merchant
marine, as well as civilian ship employees, are compulsorily insured
against sickness and accident in the Seamen’s Welfare Fund (Caisse de
Prévoyance). The insurance applies also to seamen in life-saving sta­
tions and to natives in French colonies and protectorates. Foreign
seamen are excluded unless there is an agreement granting reciprocal
rights between France and the country of origin. Membership in the
welfare fund was made compulsory by the law of December 28, 1905,
as amended by an act effective January 1, 1930. In addition, each
employee is affiliated with the national social-insurance system for
sickness and maternity benefits for his wife and children, and for
nonoccupational accidents. The sickness-insurance and pension sys­
tems for seamen are under one administrative office, although the
benefits are covered by separate funds.
Coverage.— The category “inscrits maritimes” includes all officers
and seamen engaged in the navigation and maintenance of ships of

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

Social Security

635

the merchant marine and fishing fleet, among whom are the deck crew,
pilots, radio operators, carpenters, electricians, engineers, oilers, and
stokers. The category “agents du service general” covers other
employees on shipboard, including doctors, pursers, clerical staff,
nurses, stewards, cooks, etc. Musicians and barbers are included if
regularly employed by the shipowner; if they exercise their trade on
board without being regularly paid by the shipping company, they are
not included. The number of persons insured in the welfare fund in
1937 was 143,000, of whom 129,000 were registered seamen and 14,000
civilian employees.
Contributions.—The contributions are based on the total agreed
wages and profits, figured on an annual basis, or the declared wages,
and amount to 5.25 percent, of which the employee pays 1.05 percent
and the employer 4.20 percent. When the actual wage is not avail­
able the contribution is based on a minimum monthly scale ranging
from 1,140 francs to 510 francs for officers and seamen in the first five
classes; 420 francs for ordinary seamen; 210 francs for apprentice sea­
men; and 120 francs for cabin boys. The corresponding scale for
general employees ranges from 1,140 francs for doctors to 279 francs
for unskilled workers.
Benefits. Insured persons are paid for sickness or accident incurred
on shipboard or in line of duty, but not for disability arising from
intentional fault, such as drunkenness, or from a nonoccupational
risk ashore. A report and claim for benefit must be filed as soon as
the insured person has the opportunity to land. The benefits are
payable for 4 months after the regular wage stops, at a rate equivalent
to one-half of the wage or salary, with a minimum of 13.70 francs per
day. Application for invalidity benefits may be made after the sick­
ness benefit expires.
Administration .—The National Disabled Seamen’s Institution ad­
ministers both the sickness and the pension funds. This institution
is autonomous and has civil personality, but is under the authority of
the Minister of Merchant Marine. It is administered by a com­
mittee of 30 members, of whom 10 represent the Government, 10
represent shipowners selected by syndicates or federations, and 10
represent the various grades of merchant-marine employees.
Railwaymeri’s Sickness Insurance System
Separate systems insure employees of the great railroad systems in
France against (1) sickness, and (2) old age and invalidity. There are
seven large railway systems. Article 49 of the national socialinsurance law of April 30, 1930, modifying the law of April 5, 1928,
provided that a separate sickness-insurance system should be estab­
lished for railway employees within 1 year after the general system
went into effect. Accordingly, a decree establishing sickness insurance

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

636

Monthly Labor Review—March 1938

for railway employees was issued June 30, 1931, which is the present
basic law. Its general effect was to provide permanent railway
employees with the sickness benefits of the national social-insurance
law, but the railways interpreted it as not extending such benefits to
the employee’s family. The unions brought a successful action in
February 1937, claiming that such benefits were intended by the law.
Accordingly a new decree has been drafted, but not yet promulgated,
to replace that of June 30, 1931, extending such additional benefits
and including persons earning up to 25,000 francs annually.
Coverage.—All permanent employees of either sex whose annual
wages are not over 20,000 francs are protected by this insurance.
Auxiliary employees, who number about 20,000 as compared with
the 400,000 permanent employees, are not included but are insured
under the national social-insurance system for employees of com­
merce and industry. New employees on probation likewise continue
under the general law, not being entitled to advantages under the
separate railway system until after two calendar quarters of affiliation
for sickness benefits, or after four calendar quarters for maternity
benefits. Provision is made for interchange between the general
social-insurance system and the special system for railway employees
in appropriate cases.
Contributions.—The employee pays no contributions. The railway
advances whatever funds are necessary to pay the claims of its em­
ployees for benefits accorded by the national social-insurance law.
The State makes no direct contribution, but as in the case of old-age
pensions, it must be noted that the State makes up operating deficits
and can be regarded as bearing the entire burden of sickness insurance
for railway employees.
Benefits.—Sickness and maternity benefits are equivalent to those
provided by the national social-insurance law (see pp. 626-628).
The wife and dependent children of an employee were not granted
benefits prior to a court decision of February 1937, confirming their
rights to such benefits. Employees earning over 20,000 francs annu­
ally are, by the general statutes of the railway, entitled when sick to 3
months at full pay, a further 3 months at half pay, and thereafter the
invalidity benefits accrue.
Administration .—The central administration of each railway has
the responsibility of sickness insurance of its employees, subject to
supervision of the Ministries of Labor and Public Works. The
recently formed National Railway Co. will consolidate the railway
social-insurance funds after January 1, 1938.
Statistics of operation.—The number of permanent employees of
the railroads was 389,470 at the end of 1935, having decreased grad­
ually from 438,673 in 1932 owing to economy measures. These
employees lost 4,275,600 days from illness in 1935, or an average of

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

Social Seca rily

637

10.7 days per employee (exclusive of accidents). The average illness
was 9.6 days in 1934 and 10.7 days in 1933.
The cost of sickness insurance to the railways was estimated as
follows for 1932 (subsequent statistics not being available):
Total cost {francs)

Cash benefits---------------------------------------------------------- 136, 000, 000
Medical benefits, etc------------------------------------------------- 46, 000, 000
Maternity benefits to woman employees_______________ 10, 800, 000

Average cost
(francs)

333
113

Total------------------------------------------------------------ 192, 800, 000

This amount will be considerably increased by sickness and mater­
nity benefits to the wives and children of permanent employees.

EX TEN SIO N OF U N EM PLO Y M EN T IN SURANCE IN
GREAT B R IT A IN 1
THE BRITISH Unemployment Insurance Act, 1935, excepted
employment in domestic service from insurance, except where the
trade or business providing the employment was carried on for the
purposes of gain. Regulations issued by the Minister of Labor,
December 22, 1937, in accordance with the terms of the 1935 law,
provide for the inclusion also of persons employed in domestic service
in any trade or business which is not carried on for the purposes of
gain. Domestic workers in private families are not covered by
unemployment insurance, and the present regulations exclude horti­
cultural workers, who are already insured under the agricultural
scheme, and certain other classes of outdoor private domestic servants
which the Government intends to bring into insurance under the
agricultural system.
The principal classes covered by the new regulations are workers
in what is described as institutional domestic service such as nonproprietary clubs, the Navy, Army, and Air Force canteens, noilresidential educational institutions, and hospitals. Also included are
such outdoor private domestic servants as chauffeurs, gamekeepers,
and grooms. The new regulations will have the effect of bringing
into unemployment insurance, under the general scheme, about
170,000 domestic workers
1 Great Britain, The Ministry of Labor Gazette (London), January 1938, p. 7: Reports of the Unemploy­
ment Insurance Statutory Committee, London, 1937.


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

Industrial and Labor Conditions

M IN IM U M

WAGE FOR

SUGAR-BEET

LABOR,

1937

SINCE publication of the article on wages, employment conditions,
and welfare of sugar-beet laborers appearing in the February issue
of the Monthly Labor Review, the Agricultural Adjustment Adminis­
tration has announced the determination of minimum wage rates to
be paid for harvesting the 1937 crop of sugar beets in order that
producers may qualify for benefit payments under the provisions
of the Sugar Act of 1937.1
This determination was made following a series of public hearings
in beet-growing areas and applies only to work on the 1937 crop done
after September 1, 1937, the effective date of the act. It prescribes
minimum rates, on a sliding scale, which are governed by yield per
acre and by wages previously agreed upon between the individual
worker and the producer. The maximum increase in the minimum
rate over the existing rate, 12 cents per ton, amounts to approxi­
mately 15 percent of the existing harvesting rates, according to the
Agricultural Adjustment Administration. This increase, however,
will not apply under certain circumstances. The determination reads
as follows:
* * * a fair and reasonable wage rate with respect to the harvesting, after
September 1, 1937, of the 1937 crop of sugar beets, which rate for any farm shall
be not less than 12 cents per net short ton harvested, in addition to the total
amount agreed upon between the producer and laborer, Provided, however, That a
producer shall be deemed to have complied with the requirements of section 301
(b) of the Sugar Act of 1937 in regard to fair and reasonable wages if rates have
been paid of not less than $7.50 per acre for harvesting sugar beets on farms
yielding an average of 7 net short tons or less per acre, and in addition thereto 75
cents per net short ton, and fractions thereof in proportion, for each ton harvested
per acre for the farm in excess of an average of 7 net short tons per acre; and
Provided further, That the foregoing shall not be construed to mean th at a pro­
ducer may qualify for payment who has not paid in full the amount agreed upon
between the producer and the laborer.

Wage rates for beet labor prevailing in various beet-growing areas
prior to this determination are shown in the article appearing in the
February 1938 issue of the Monthly Labor Review.
1 Agricultural Adjustment Administration.

638


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

Press releases of January 21 and January 26, 1938.

Industrial and Labor Conditions

639

M U L T IPL E -SH IFT PLA N T O PERATION
ONE-FIFTH of 130 companies employing 228,633 persons on multipleshift operation in October 1937 operated continuous-process plants.
The remaining four-fifths were operating continuously from choice,
owing mainly to some temporary increase in market demand. The
National Industrial Conference Board,1 which made the survey here
reviewed, classified the concerns with multiple-shift operation by
industry and inquired into the number and length of work periods
and the methods of assigning and remunerating employees for work
on the least desirable shifts.
Of the 26 companies working continuously as a general policy, 12
had fewer and the remaining 14 had more than 1,000 employees on
their rolls; for noncontinuous-operation plants there was a relatively
higher proportion of small concerns; that is, 60 out of 104 had fewer
than 1,000 employees. In rating plants as operating continuously,
however, the Board points out, not all employees are necessarily
engaged in shift work. Certain departments or practically the en­
tire productive force may be so employed. Special groups, including
maintenance men and common and construction labor, may frequently
work only in the daytime. Work on night shifts was reported for 26
percent of the employees in continuous-operation plants and 17 per­
cent of those in noncontinuous operation.
In table 1 the 130 companies covered by the survey are classified
by industry and kind of operation.
T able 1.— Distribution of Companies and Employees, by Industry and Kind of Operation
Continuous operation

Noncontinuous oper­
ation

Industry
Number of Number of Number of Number of
companies employees companies employees
Total__________________________________________
Chemicals..."____________________ _____________
Electrical appliances_________ __________________
Food products______________________ . . . _______
Iron and steel___ _______________________________
Machines and machine tools______________________
Metal products, other _ ______________ .. . . ___
Paper and its products___________________________
Textiles and clothing___ _______ _____ __________
Unclassified,____ _ _______________ _______ .

26
6
2

3
4
1
10

61,317

104

3, 610

10

20 874
>1,650
i 2,173
1 47,054
32,522
'750
50, 358
8,325

8 , 669

4,581
12,485
2,867
4, 600
28,115

167, 316

5
5
5
23
23

1
22
10

1 One com pany did not state num ber of em ployees.

Tn the continuous-operation group, the iron and steel and chemicals
industries led in number of employees. In contrast, the companies
employing large numbers and classed as noncontinuous which were
1 N ational Industrial Conference Board, Inc.
Operation. N ew York, 1937.


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

Studies in Personnel P olicy, N o . 3: M ultiple-S hift

640

Monthly Labor Review—March 1938

working on a shift basis were led by a consumers’ goods industry—
textiles and clothing. This industry accounted for 50,358 of the
167,316 employees in the group. The heavy industries followed,
machine and machine tools being next in numerical importance, with
47,054 employees.
Under multiple-shift operation the 8-hour day and 5-day week
predominate in the plants investigated, as is shown in table 2.
T able 2.— Distribution of Companies by Kind of Operation and by Daily and Weekly

Work Schedules
Day shift

Night shift

NonconContin­
Noncon­
Conti nuous-opera- tinuous- uous-opera­ tinuoustion
tion
operation
operation
companies companies companies companies

Work schedule

Days or hours per week:
days-— ____ — ________________ ________

14

78

1
12

11
1

9
45 hours.. ____

____________

. . . . _. .

Daily hours of work:
6 h o u r s .._______ ______________ _____ ..

1
1
2

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

. .

— ____
2 18
*1

1
1

8
1

1

12

2

7 hours . ............ .

10
1
3

3

12

1
1

1

12

2 75

42

1

2 19

1

3 73
41
41

18

4

9

8

1

i
.

1
1

1

1

_ _ . ____ _

7

1

41
41

12.3 hours________

1

88

8

2

1
1
8

11 com pany did not report w hether lunch period is included.
2 6 com panies did not report w hether lunch period is included.
* 8 com panies did not report w hether lunch period is included.
* N o t reported w hether lunch period is included.
5 C om panies w ith different hours on w eekdays and Saturdays, for m en and w om en, or on different shifts.

Schedules in excess of 5 days per week were found to exist more
frequently in continuous than in noncontinuous plants. Where the
longer shifts were enforced in noncontinuous-operating plants, they
were more common for day workers than for night workers.
Practically all the continuous-operation companies (25) had adopted
multiple shifts as a permanent policy. The noncontinuous-operation
companies, however, stated that the policy was permanent in 67
plants, of a temporary nature in 30, and in 7 permanent in some
departments and temporary in others. A 3-shift system was being
applied by 20 of the continuous-operation companies, a 4-shift system
by 3, and in the remaining 3, the number of shifts worked varied from
2 to 4. A 2-sliift system was used by 54 noncontinuous-operation

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

641

Industrial and Labor Conditions

companies, a 3-shift system by 26, and a 4-shift system by 4; in 17 of
the noncontinuous-operation companies, 2 and sometimes 3 shifts
were worked, and in 3 the number worked varied from 1 to 3.
In continuous-operation companies employees were rotated between
shifts more often than permanently assigned to particular shifts, 19
companies employing the former method and 2 the latter. Noncontinuous plants employed the permanent-assignment system more
often than rotation between shifts, 33 companies using the former
system and 33 the latter. Where rotation is practised, changes are
customarily made weekly or biweekly, and in a few instances at less
frequent intervals.
The study further disclosed that it is not unusual to pay slightly
higher rates for night work or to offer other inducements to make such
employment less unattractive. Table 3 gives the extent and character
of extra compensation for night shifts.
T able 3.— Extra Compensation for Night Shifts, by Kind of Operation of Companies

Extra-compensation policy

Contin­ Nonconuous op­ tinuous
eration operation
compa­
compa­
nies
nies

Regular compensation--------Additional compensation___

20
6

Amount of additional compensation:
cents per hour_____
3 cents per hour________

2 Yi

Extra-compensation policy

70 Amount of additional compen34
sation—Continued.
1
1

15 percent after 6 p. m __
P ut in larger bonus class..

l
1

18

J

1
l
1

Contin­ Nonconuous op­ tinuous
eration operation
compa­ compa­
nies
nies

8

i6
1
1

68
22
33
2

3
1

1 10
1
27
1

First night shift 5 percent;
second night shift, 10
percent___ _____ ____

1
2

4
time for street-car connections___ _________

i

2

1 Given as a bonus in 1 company.
2 Only after 6 p. m. in 1 company; 10 percent on base pay as bonus in 1 company.
3 Also work longer hours in 1 company.

4 Makes higher earnings possible.

W W W

PA R T-TIM E FA R M IN G IN T H E SOUTHEAST 1
THE combination of farming with a job that brings a cash wage
has long existed in the United States—particularly in rural areas
where the presence of natural resources has led to the growth of
industries and of industrial communities. The widespread ownership
of automobiles and^the extension of improved roads have contributed
to the development of combined farming-industrial employment in
1 Extract from Works Progress Administration, Research Monograph IX: Part-Time Farming in the
Southeast, Washington, 1937.


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

642

Monthly Labor Review—March 1938

the Southeast by placing residents of outlying rural districts in touch
with industrial centers.
The long depression in agriculture, and more recently, the depression
in industry have had an important influence on the growth of parttime farming in the Southeast. In recent years industrial workers
have sought to supplement their reduced wages in industry with parttime farming, farmers have been induced to supplement their reduced
farm incomes with off-the-farm employment, and many persons
already engaged in combined farming-industrial employment have
extended their farming activities. One-lialf of the families surveyed
had been carrying on part-time farming for 6 continuous years prior
to 1935, however, indicating that part-time farming enterprises were
not undertaken purely as a result of the depression.
Part-time farming in Alabama, Georgia, and South Carolina is at
present carried on by workers in all of the major industries of the
region—cotton-textile manufacturing, lumber naval stores, and coal
and iron mining—as well as by workers in other manufacturing and
mechanical industries, in transportation and communication indus­
tries, in trade, and in public service. In none of the industries, with
the possible exception of coal and iron mining, is the labor involved
so heavy as to discourage the additional work required by a farm
enterprise, although the nature of available employment and the lack
of available transportation facilities in some urban areas, such as in
Charleston, discourage daily commutation of farm operators from
remote rural areas.
The survey of combined farming-industrial employment in five major
subregions of the Southeast showed that economically the part-time
farm is an advantage. It requires in investment in house and land
little more than ordinarily would be spent in housing; it requires only
a small amount of capital for equipment or livestock; and the expendi­
ture for seed, fertilizer, or hired labor is negligible.
A part-time farm enterprise undertaken on as small a scale as those
found in the Eastern Cotton Belt, however, does not give the operator
and his family economic self-sufficiency. At best, it only supplements
a cash wage from employment in industry, and the possibility of
carrying on part-time farming activities successfully is contingent
upon possession of off-the-farm employment.
In all of the subregions, the part-time farms surveyed were small,
and the enterprises were conducted mainly to produce food for home
consumption. Most of the farms surveyed had less than 5 acres of
cropland, and almost half of them had less than 2 acres. The small
acreage was sufficient, however, for the farm to produce a definite
contribution to the family living—not only fresher and more abundant
products for the diet, but also a monetary saving in grocery bills

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

Industrial and Labor Conditions

643

during the summer months that ranged from a few dollars to as much
as $20 per month.
The value of products consumed by typical part-time farmers
during the year ranged from about $70 by part-time farmers who
had only a garden to about $400 by those with a garden, a cow,
several hogs, and a small flock of poultry. Since the majority of the
part-time farmers surveyed made less than $500 a year at their
principal off-the-farm employment, the farm’s contribution to family
living was an important one.
Although most of the part-time farmers kept a cow, a hog or two,
and a flock of chickens, a vegetable garden was the activity that was
most general. On half of the farms, gardens produced three or more
summer vegetables for 3, 4, and 5 months. Many of the gardens
were only one-quarter acre in size. Few of the farmers reported
three or more vegetables for as long as 8 months, in spite of the long
growing season throughout the eastern Cotton Belt and the small
expense attached to garden production. Most part-time larrn
families were obviously unfamiliar with winter vegetables, but some
garden products, such as sweet and Irish potatoes and corn, were
stored by two-thirds of the families, while vegetables were canned by
three-fifths of the households, thereby prolonging the period of the
garden’s usefulness through the winter months.
In view of the actual saving in dollars and cents that was made
possible by the part-time farm’s contribution of vegetables, pork,
dairy products, and livestock products, the operators on the whole
did not feel that their farm enterprises took a burdensome amount of
time. From 3 to 5% hours a day were required in farm work from
April through August on the white noncommercial part-time farms.
Although in some cases the head of the family did all of the work
alone, the farm tasks were usually shared by members of the family.
Few of the part-time farmers spent as much as $15 for hired labor in
1934.
The part-time farmers’ investment in farm buildings and land was
small, amounting to less than $2,000 in over one-half of the cases
surveyed. Only a few of the farmers had holdings valued at more
than $5,000, and these were commercial farmers, for the most part,
who produced some cash crop for the market or carried on some dis­
tinctly commercial livestock enterprise.
Investment in implements and machinery was practically negligible,
most of the farmers owning only a few simple hand tools, such as
hoes and rakes. In most cases, only the part-time farmers operating
10 acres of land or more owned horses or mules. The limited crop­
land on most enterprises prevented the growing of sufficient feed for
work animals, and besides, the small enterprises common to the
majority of part-time farmers did not warrant ownership of a mule.

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

644

Monthly Labor Review—March 1938

In order to carry on farming activities, part-time farmers on the
average were forced to live slightly farther from their places of work
than were the nonfarming industrial workers. But residence at a
greater distance from an employment center placed the workers in
only one subregion at a disadvantage in securing work, as was shown
by a comparison of parttime farmers and nonfarming industrial
workers with respect to rates of pay, total earnings, and number of
days employed. Further evidence that part-time farmers on the
whole were not at a disadvantage with respect to employment oppor­
tunities was given by the fact that part-time farmers and nonfarming
industrial workers were closely parallel in distribution in the industries
of each subregion, as well as in the proportions of their numbers who
were skilled and unskilled workers.
The suburban or open-country residence that was involved in a
part-time farming enterprise in some subregions carried with it some
definite advantages. Housing cost part-time farm fa m ilies who lived
in the suburbs or open country less than it would have in town. Since
families of part-time farmers were larger than those of nonfarming
industrial workers, the lower rents, especially for large families, were
one of the advantages that accompanied part-time farming. Nearly
one-fourth of the part-time farm families consisted of seven or more
persons. Part-time farmers’ homes were larger than those of nonfarming industrial workers, but because of the larger families, there
was slightly more overcrowding in the farm group.
Lack of modern conveniences was one of the disadvantages that
frequently accompanied part-time farming, because power lines and
water mains were not generally extended into sparsely settled rural
areas. Electric lights, running water, and bathrooms were often
lacking.
Home ownership was more common among part-time farmers than
among the nonfarming industrial workers, but a large proportion of
tenancy existed even among part-time farmers, and especially among
Negro part-time farmers.
From the social viewpoint, too, the part-time farmer’s life had its
advantages and disadvantages. In general, more part-time farm
than nonfarming industrial families participated in organized social
and community life. Also, the extent of participation of part-time
farmers was greater than that of nonfarmers in almost every type of
activity available to them, which was surprising in view of the greater
distances many of them had to go to attend meetings. Adore members
of part-time farm than nonfarm families were in positions of leadership
as represented by officeholding, and enumerators in more than one
area remarked that the part-time farmers enjoyed a higher social
status than that of the nonfarming industrial workers.

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

Industrial and Labor Conditions

645

Fewer social organizations, however, were available to part-time
farmers. Inasmuch as such groups stimulate social intercourse and
interest in community affairs, the lack of social organizations was par­
ticularly disadvantageous to young people in part-time farm families.
The present survey shows that while part-time farming can be a
decided financial aid, in the sense that it supplements wages from in­
dustrial employment, no blanket endorsement for developing or ex­
tending present part-time farming or for encouraging new part-time
farming enterprises may be given. Because a fairly small part-time
farm enterprise alone is not enough to give self-sufficiency to the
operator, part-time farming cannot be considered as an economic
“way out” for unemployed persons or for families on relief, although
a part-time farm, coupled with even a small cash wage, would alleviate
the acute distress of many families now on relief. Part-time farming
cannot be a solution for unemployment in the eastern Cotton Belt,
because possibilities of increased industrial activities which would
provide the necessary cash wage are slight. Consequently, part-time
farming as an activity can be encouraged only where industry lias
sufficiently recovered from the depression to offer satisfactory wages
and hours to its workers, or where future prospects for an industry’s
development are promising.
*######*
FOREIGN WORKERS IN GERMANY 1
IN 1935-36 there were almost a quarter of a million foreign workers
employed in Germany. Shortly before the World War, when German
industries and trades were booming, foreign workers in Germany
numbered more than 1 million persons, but by 1933-34, due to such
factors as the World War, inflation, and the world depression, the
number had decreased to 176,115. During the present German
regime, with the boom in the war industries, the number of foreign
workers employed in Germany has been increasing. In 1934—35 it
had risen to 208,777, and in 1935-36 had reached 227,384.
The following table from official sources shows the industrial dis­
tribution of the foreign workers in 1935-36. Only 24 percent were
engaged in agriculture, gardening, animal industry, forestry, and
fisheries combined, more than three-fourths being employed in indus­
try, trade, and service occupations. Unskilled laborers formed about
8 percent of the total foreign workers, while approximately 92 percent
were skilled workers. Nearly 17 percent were salaried employees and
about 83 percent were wage earners.
i Data are from Germany, Statistisches Reichsamt, Statistisches Jahrbuch, 1934, 1935 and 1936. Berlin,


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

646

Monthly Labor Review—March 1938

Industrial Distribution of Foreign Workers Employed in Germany During Year Ending
March 31, 1936
Number of foreign workers
Industrial or trade group
Total

Males

Females

W age ear n e r s

A griculture, gardening, and anim al industry.
Forestry and fisheries___________ ____ ______
M ining, salt, and peat w ork s......... - ............. . . .
Stone and earthen in d u stry.................. ...............
Iron- and steel w orks_____________ ____ ____
M usical instrum ents and to y s ______________
C hem ical in d u str y .._____ ________ ____ ____
R ubber and asbestos in d u stry ______________
Spinning in d u stry __________________ .'______
Paper w ork in g.______ ______________________
Leather w orking................ ............. .........................
W oodw orking_____________ ________________
Food and confectionery_____________________
C lothing in d u stry __________________________
H ealth and p hysical cu ltu re________________
B u ild ing trades_____________________________
P rin tin g________________ ____ ______________
C leaning and d isinfecting___________ _______
Theater, m usic, and film s__________________ _
H otels and restaurants____ _________________
T ran sportation ._________ _____ ____________
D om estic service___________________________
U nskilled lab orers.____ ____________________
M achinists and firem en_____________ ____ _

53,043
610
10.536
9,094
16,886
368
550
188
16, 217
1,844
1,082
4,428
4, 393
8 , 060
1,192
9, 222
1,236
395
359
3, 576
8,362
18,825
17,445
1,045

131
308
2,034
7,405
278
12, 507
1,035

T otal w age earners........ ..................... .........

188,956

123,791

65,165

22,451
6,608
9,369

11, 203
6, 473
6,094

11,248
135
3, 275

34, 703
538
10,389
7. 357
15,983
264
388
96
6, 507
904
960
4,117
3,440
3, 453
757
9, 217
1,020

18,340
72
147
1,737
903
104
162
92
9,710
940
122

311
953
4,607
435
5
216
264
51
1,542
957
18, 547
4,938
10

S a la r ie d e m p lo y ee s

Commercial and office work____ ______ _______ ____
Technical employees_____ __________ ______________
Other employees............ ....................................................
Total salaried employees.........................................

38, 428

23, 770

14, 658

Grand total, wage earners and salaried employees.

227, 384

147, 561

79, 823


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

Cooperation

COOPERATIVE BURIAL ASSOCIATIONS, 1936
THE PROVISION of burial service on a cooperative basis is com­
paratively new and has as yet been little developed. Hard times and
the high cost of living cause the formation of cooperative associations
whose main purpose is the supply of food and other household supplies
without profit. The high cost of dying and what seemed exorbitant
charges for funeral service were the motives for the formation of the
cooperative burial associations now in existence.
Coal mining is a hazardous occupation and funeral expenses form
an item of considerable importance in mining regions. It is not
surprising, therefore, that the first burial association of which the
Bureau of Labor Statistics has record was started in 1915 by a
group of coal miners organized in a local union in Illinois. At least
four other labor groups composed largely of coal miners—formed
similar associations in the same State within the next few years.
These organizations, though cooperative in the sense of being non­
profit, have in other respects more of the character of union than of
cooperative enterprises.
In the late 1920’s the farmers in Iowa and Minnesota became inter­
ested in the provision of funerals at more moderate prices and, with
local townspeople, established burial associations at a number of
places. Recently some of the farm journals have expressed their
favorable interest in the formation of these associations, and in
Nebraska local Farmers’ Union groups have started two associations,
each of which is county-wide in scope.
The early organizations usually confined their activities to a single
town and its immediate vicinity. Most of the later associations have
been authorized to do business over one or several counties. For
obvious reasons, a large membership is desirable in a burial associa­
tion if it is to be successful.1 This is one line of activity entirely
dependent upon conditions outside the control of the organization.
The volume of business being dependent upon the death rate, no
amount of advertising or sales campaigns will increase it. Only a
large membership will insure a sufficiently large number of funerals to
1 It was estimated, on the basis of the Iowa associations’ experience, that a burial association, to be suc­
cessful from the beginning, should start with at least 500 members and capital of at least $5,000 (Consumers’
Guide, Washington, July 26, 1937).

46585— 38------ 6


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

647

648

Monthly Labor Review—March 1938

make operation worth while. The tendency, therefore, has been
toward a greater and greater coverage of membership and territory
served.
Organized cooperators entered this field several years ago, when a
group of cooperative associations operating stores and creameries
throughout the Mesabi Range district in Minnesota obtained a charter
for the Range Cooperative Burial Association. Shortly afterwards
another group of associations in Aitkin, Carlton, Pine, and St. Louis
Counties applied for a charter for the Northland Cooperative Burial
Association. Opposition to the formation of this association was mani­
fested by the private undertakers’ association in the State, which
brought suit questioning whether such a cooperative association was
legal under the Minnesota law, on the ground that cooperative associ­
ations which were members of the burial association were not the “ulti­
mate consumers” of the service. After a long period of controversy
the case was decided in favor of the cooperatives. A charter was granted
and the Northland Cooperative Burial Association began operations
January 1, 1937. Pending settlement of this case, no attempt had
been made to go ahead with the plans for the Range Association. In
July 1937, it amalgamated with the Range Cooperative Federation,
becoming a department of that Federation. Burial service was
inaugurated on September 1, 1937.2
This federated type of association makes burial service available
over a wide territory. For the local associations reporting in the
Bureau’s survey, the average membership in 1936 was 883, whereas
the two federated associations each represent a combined individual
membership of from 5,500 to 6,000.
In the local type of association, the individual becomes a member
through the payment of a membership fee. This fee represents a
nontransferable family membership and is valid even after the death
of the parents, as long as there are minor children. As each child
becomes of age, his right to service under the family membership
lapses.
In the federated associations the individual members of the local
associations which own the burial association are entitled to utilize
the burial services of the association by virtue of their affiliation with
the local cooperative association, upon payment of a small fee. In
the Northland Association this fee is 50 cents per year.
The local associations in Iowa and Minnesota both have a central
federation—the Iowa State Federation of Burial Associations and the
Northwestern Cooperative Burial Association. The former is
reported to have in membership all 10 Iowa local associations, and the
latter has 8 member associations. These federations carry on no
2
It was reported late in 1937 that a third federation, to serve members of cooperatives in the M arquette,
Mich., district, was being planned.


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

Cooperation

649

business activities. Their duties are to protect the interests of the
local associations, be on the watch for legislation detrimental to
cooperatives, provide speakers, do organizational and educational
work, and serve as a clearing house of experience among the members.
Data for Reporting Associations
As part of its general survey of cooperative associations in the
l Inited States,3the Bureau of Labor Statistics obtained information for
burial associations. On the basis of these reports it is calculated that
the 42 associations known to have been in existence at the end of 193G
had an estimated membership of about 27,000 and did a business in
that year estimated to have been about $170,000. These associations
are all in the North Central States—Illinois, Iowa, Minnesota, Ne­
braska, and South Dakota.
As already noted, the first association of record was started in 1915.
Of 33 other associations for which the date of organization is known,
1 was started in 1915, 3 in 1921, 2 in 1924, 2 in 1927, 3 in 1928, 5 in
1929, 4 in 1930, 4 in 1931, 5 in 1932, 3 in 1934, and 1 in 1935. Their
average age was slightly over 8 years.
COOPERATIVE PRACTICE

The reporting associations, without exception, operate on the basis
of one vote per member. Generally there is no limitation on member­
ship, any family in the vicinity being eligible for membership on pay­
ment of the required fee. One association, however, reports that it
desires no new members at present because of its limited operating
facilities. Two others limit their total membership to 1,000 and 2,000
respectively, but this limit is far from having been reached in either
association.
These associations depart from the Rochdale practice of “business
at prevailing prices.” All of those furnishing returns make charges
below those current in the community. For that reason, the “net
earnings” reported were lower than would have been the case had
they followed Rochdale practice.
Only one association reported returning a patronage refund. The
amount so returned was not stated, but the rate of return was 10 per­
cent. Mainly because the margin between actual cost and the charge
to the patron is small, the practice of return of patronage refunds is
not common among the burial associations; the member has already
had the equivalent of the refund in the form of lower prices.
3
Summary data for several groups of associations have already appeared in the Monthly Labor Review,,
as follows: Housing associations, November 1936 (p. 1146); electricity associations, January 1938 (p. 110);
and telephone associations, February 1938 (p. 392). Reports of spot studies in certain localities were given in
the September 1937 (Cleveland), October 1937 (Chicago), and December 1937 (northern Wisconsin) issues
of this publication.


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

Monthly Labor Review—March 1938

650

MEMBERSHIP

Of 42 associations known to have been in existence at the end of
1936, usable reports were received for 19.
A combined membership of 15,006 was reported, an average of 833
per association. The individual associations ranged in size from 50
to 4,000 members; they were distributed as follows:
N u m b e r of
asso cia tio n s

Less than 100 members_________________________________
100 and under 250 members-------------------------------------------250 and under 500 members-------------------------------------------500 and under 750 members-------------------------------------------750 and under 1,000 members-------------------------------------1.000 and under 2,000 members---------------------------------------2.000 and under 3,000 members---------------------------------------3.000 members and over_________________________________

2
1
5
5
2
1
—
2

The associations for which membership data are available for a
period of years show an almost unbroken record of expansion. One
association which started with 10 members in 1930, had increased to
800 by the next year, to 1,030 in 1933, to 1,050 in 1935, and to 1,260
in 1936. Another rose from 400 members in 1931 to 3,530 in 1936.
The associations reporting for both 1935 and 1936 had an increase of
672 members, or 5.7 percent; not one had had a loss in membership.
STATISTICS OF OPERATION

The reporting associations conducted 595 funerals during the year,
or an average of about 34 each. Two of the smaller associations
handled only 6 funerals each. The largest number (91) was handled
by a 6-year-old association with some 1,200 members.
An aggregate income of $63,189 was reported, of which $4,432
represented net savings.
The following table summarizes, by States, the 1936 operations of
the associations reporting. Bills and accounts payable, not shown
in the table, aggregated $5,455—reported by 12 associations. Six
associations reported that they had no outstanding obligations.
Most of these are nonstock associations operating on a membership
basis. The cost of membership is generally $5 or $10, but in two
associations reporting the membership fee is only $1. Generally this
is the only regular charge, but one organization (with a $10 member­
ship fee) also charges dues of 25 cents per month; it states, however,
that these dues are “not compulsory.”
A number of the associations provide that upon the lapsing of a
family membership, the membership fee shall be transferred to the
“free burial fund.” This fund is commonly maintained by members’
annual contributions of 25 cents each, and is used to assist in paying
burial expenses for needy members.

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

Cooperation

651

Statistics of 1936 Operations of Cooperative Burial Associations, by States
Item
Total known associations......... ...........
Total number of reporting associations.
Membership:
Number of associations reporting.
Number of members___________
Average per association.............. ..
Number of funerals:
Number of associations reporting.
Total funerals............................ .
Business done:
Number of associations reporting.
Amount_____ _____ _________
Net earnings:
Number of associations reporting.
Amount..........................................
Share capital: 1
Number of associations reporting.
Amount......................... ........ ........
Total resources:
Number of associations reporting.
Amount______ ______ ________
Net worth:
Number of associations reporting.
Amount.... ....................... ........... .

All
States

Illinois

42
19

4

10

1

3

20
12

17
15, 006
883

1

4,000
4,000

3
1,935
645

5, 481
498

60
60

3, 530
3, 530

17
595

1

2

75

41

11

427

2
22

30

1

Iowa

Minne­ Nebras­ South
sota
ka
Dakota
2
2

11

6
1

1

1

1

$63,189

$4,170

9
$54,171

$928

10

|
$73

7
$3,140

1

1

$1,023

$196

|
$1,055

|
$3, 530

12

$4, 432
12

$31, 724
12

$62, 915
11

$50,109

2

8

$8, 634

$18,505

1

1

$3, 920

2

8

$14,674

$41,656

J
$1,145

$5,440

2

7
$30,909

]
$1, 055

J
$5,440

$12, 705

1

1 Includes paid memberships, in nonstock associations, where amount is known.

SERVICES, OPERATING FACILITIES, AND CHARGES

The provision of caskets and hearse service is practically universal
among these associations, and undertaking service is also common.
Other, less usual, services are the furnishing of tombstones, cemetery
plots, burial vaults, and ambulance. Of 16 associations reporting, all
provide caskets, 14 provide hearse, and 12 embalming, 4 deal in tomb­
stones, 3 in burial vaults, 3 have an ambulance, and 1 owns a cemetery.
Of 14 associations reporting as to operating facilities, 13 operate a
funeral parlor and the same number have their own hearse; one asso­
ciation rents the hearse each time it is needed.
It is a common provision in the bylaws of the burial associations
that business shall be done “at the lowest practicable cost” consist­
ent with the safety of the business. One organization sets the cost
of funerals thus: “The cost of the funeral shall consist of the cost of
casket and other supplies, plus the funeral director’s charges and use
of hearse, plus a surcharge sufficient to meet the current operating
expenses of the association and other essential costs including the
reserves required by law.”
Charges.—For the associations reporting, the average cost per
funeral to the patron was $175. Classified by average cost the dis­
tribution was as follows:
Number of
associations

Less than $100_________________________________________
$100 and under $150____________________________________
$150 and under $200____________________________
$200 and under $250______________________________
Over $250_____________________________________________

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

3
3
5
3
1

652

Monthly Labor Review—March 1938

The foregoing are the prices charged to members. The practice as
regards nonmembers varies. Three associations state that they do
no business with nonmembers. Two allow nonmembers to utilize
their services but require from them at the time of the burial the
regular membership fee, thus admitting them to membership. One
association extends its facilities to nonmembers at the same prices as
charged to members. The remaining associations, however, charge
higher rates—10 percent higher in one case and 20 percent in another.
Each association was asked to estimate the amount the patron
saved per funeral, by utilizing the services of the cooperative. The
replies ranged from $15 to $400; the average was $160. One associa­
tion pointed out that its estimate of saving was based upon prices
prevailing before the establishment of the cooperative association.
The 14 associations reporting employed in 1936 some 25 persons, and
expended $15,472 in wages. All of these employed an undertaker
but only 2 were on a full-time basis; in 12 cases the undertaker was
employed on contract. In 7 cases he also acted as manager of the
association; in 6 associations a manager was employed in addition.
Sources oj supply— The early associations experienced some
difficulty in obtaining supplies—embalming fluid, caskets, etc.
This was known, in a few cases, to be due to pressure from private
undertakers. Several years ago arrangements were made with a
small independent casket factory, and many of the burial associations,
notably in Minnesota, now obtain their supplies through that com­
pany.
Of the associations reporting, seven said that none of their supplies
were obtained from cooperative sources. Seven purchased at least
part of their supplies from cooperatives; of these one purchased in this
way 75 percent, one 80 percent, one 90 percent, and two 100 percent.


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

Education and Training

T R A IN IN G SCHOOL FOR HOUSEHOLD EM PLO Y EES
IN THE SUMMER of 1936 the Philadelphia Institute on Household
Occupations was established, under the sponsorship of the YoungWomen’s Christian Association. The purpose of the school is to
analyze the reasons for the failure of housework to attract girls, in
order to eliminate the causes for this failure and to give young women
training in household employment adequate to meet the most exactingdemands. In brief, the objective of the institute is to define and raise
standards in domestic service.
According to the article from which the present brief account of this
new venture is taken,1“the obvious disadvantages of household employ­
ment are long hours; rates of pay based upon the budget or more often
the inclination of the employer; limited time for any social or personal
life; and the need for intelligence, resourcefulness, initiative, and
physical vigor not demanded in other jobs where the girl could make
the same money working fewer hours.”
The institute seeks to give the girls not only technical training,
but self-assurance and balance. The immediate supervisor is a young
woman who has been in private domestic service. Her standards are
excellent and practical. The director of the institute has had a variety
of experience and takes a great interest in her work. White and Negro
girls who have the physical and mental qualifications which the school
requires and which employers demand are given free training and
placement. If employers are willing to pay a minimum hourly rate
of 25 cents—$8 for 32 hours per week, and $12 for 48 hours per week—
the institute is prepared to furnish them competent, high-class
workers.
The institute’s code provisions have been formulated with a view
to educating the employer to the idea of a minimum rate per hour for
efficient work and of purchasing only so much of such service as her
budget permits, “instead of expecting full-time service for whatever
she thinks she can afford to pay.”
The institute is located in Philadelphia, in a nine-room building.
After 3 months’ training the girls are ready to take up the occupation
for which there is the heaviest call—general work in a one-worker
' Woman’s Press, New York, February 1938, pp. 74-75: Housework as a Profession, by Elizabeth S. West.


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

653

654

Monthly Labor Review—March 1938

household. They prepare and serve breakfast and dinner to the three
professional women who live at the institute. In this normal home
situation the pupils get practice in all kinds of housework.
The estimated cost of a scholarship per girl for the preemployment
course is approximately $50. This amount covers the midday meal
at the institute, uniforms, and medical examination.
In the first 6 weeks principles and procedures are taught, the training
being based on the six major home occupations listed below. Each
girl is assigned to one household occupation and carries through its
duties for a week.
1. Cook.—Prepares luncheons for the group, takes care of the kitchen and food
storage, checks supplies, and orders food for the meals as her experience warrants,
accompanies the instructor to the market when possible, cleans the kitchen daily,
and weekly arranges the cupboards and rechecks the supplies.
2. Waitress.—Serves the luncheon for the group, answers the telephone and door­
bell, cleans the silver, and washes the dishes, except the pots and pans.
3. Laundress.—Does the laundry for the institute. This includes the girls’
uniforms, the instructors’ uniforms, the table and house linen, such as men’s
shirts, brought in for special practice.
4. Chambermaid.—Does the daily bedmaking and daily straightening of the
bedrooms and wiping up of the bathrooms. The weekly cleaning is left to the
general cleaner.
5. General cleaner.—Does the weekly cleaning of the bedrooms as well as the
daily and weekly cleaning of the living rooms of the apartments and the down­
stairs of the bouse, except the kitchen.
6. Child’s nurse— Takes complete charge of the babies brought to the institute
daily by their mothers.

After this preliminary training each student is delegated to act as
houseworker for the institute for 1 week on a 7-hour day basis which
begins at 12:30 p. m. She has the complete care of the three apart­
ments on the first floor, which includes bedmaking; general cleaning of
living rooms, bedrooms, and baths; and personal laundry for occu­
pants. She also has the responsibility of preparing and serving
dinner at 6 p. m. for the occupants of the house and their guests—a
group ranging from two to six in number. The schedule provides for
30 minutes of her own time for her own evening meal. The teacher
generally plans the meals, and a book containing the menus is left in
the kitchen for the trainee’s use. Sometimes, however, a girl is allowed
to plan the meals herself if she has special interest and aptitude in this
line.
When at the beginning of the second 6 weeks one girl is made re­
sponsible for the general housework, the remaining members of the
class are freed from some of their previous duties and receive special
training on their weak points. They continue, however, their work
in the parts of the house not covered in the one girl’s assignment,
namely, the office, the hallway, and the downstairs floor of the building.


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

Education and Training

655

The cooks are expected to prepare luncheon for the group, and the
waitresses at this period of training are given instructions regarding
different types of table service. The trainees take turns in coming
to the institute to prepare breakfast. A number of special projects,
among them the making and hanging of curtains, are carried out by
the group, and the girls are taken to visit various exhibits of interest
to them as prospective household employees.
The follow-up of the worker on the job by the director is one of the most impor­
tant features of the program. Because of the individual character of each job
requirement, the necessity for an adjustable agreement, or "live” contract, is
recognized. Therefore, a signed written agreement is not required at the time of
placement. A periodic check-up is made by the institute (the first at the end of
the first week of employment; the second at the end of the first month of employ­
ment; and subsequently every 3 months thereafter) to determine what adjust­
ments within the broad outlines of the code are necessary and where, if at all, the
training program has fallen short.

Girls securing jobs through the institute call at the school to report
on their general progress or to check up recipes. Workers who have
employment but need retraining to meet the standards demanded by
their employers before the employers will conform to the code pro­
visions, may take advantage of the institute’s training facilities either
on their own time or on time allowed them by their employers. No
specified course is available for the convenience of these workers.
They attend the school to develop special skills and to learn how to
work on a schedule, and they leave when they accomplish their object.
Sometimes employers are entertained at teas at the school, and
woman household heads who have employment problems come to
the training school for discussion and counsel. Experienced teachers
at the institute are ready to aid individual employers to organize their
households according to schedule.
Complete records are maintained for each worker the institute
places, in order to find out whether she adjusts to housework; if not,
the reasons therefor; and whether she remains in domestic service as
a vocation or goes into another occupational field.
D EV ELO PM EN T OF A M ERICA N IN D IA N ARTS AND
CRAFTS
THE American Indian, in the opinion of the Indian Arts and Crafts
Board, has outstanding ability as a craftsman, but unfortunately his
craft products have been put on the market in a haphazard way and
his monetary returns have been meager. To build up this potential
resource and to increase the proceeds from it, while upholding its
integrity, an act was passed in August 1935 to provide funds and per­
sonnel for devising improved production and marketing methods.
In the following year the Indian Arts and Crafts Board was appointed,

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

656

Monthly Labor Review—March 1938

with broad powers in fulfilling its function but with no authority to
act as a dealer.
General Policies and Plans of Board
After an extensive field study of 6 months, covering production and
marketing conditions, the Board in January 1937 outlined its general
policies and began its first concrete projects. The present brief ac­
count of the activities of this new agency is taken from the annual
report of the Secretary of the Interior for the year ending June 30,
1937.
On the production side, it is the policy of the Board to make raw
materials available; to promote quality production; to aid in the
organization of groups of craftsmen; to furnish craftsmen of tribes
having traditional handicaps with all available data on techniques
formerly used by these tribes and to inform them of the requirements
of the existing market. Those groups with no traditional handicrafts
are to be afforded an opportunity to learn industries. In the Board’s
contacts with local dealers, it encourages emphasis on high-grade work
and assists in establishing business relations with a high-grade market.
The plans of the board include stimulating and actually cooperating
in the organization of Indian arts and crafts exhibits, encouraging
publications on Indian arts and crafts, and setting up an educational
service for sales forces of stores handling Indian craft products.
Initiation of Local Projects
The Board has initiated the following specific projects:
Silver project (Navajo, Pueblo, and Hopi Reservations, New Mexico
and Arizona).—Standards of genuineness and quality for the silver
work of the Navajo, Pueblo, and Hopi Indians have been set up and
published. A Government stamp has been devised, which is appli­
cable only to products that come up to such standards.
Arrangements have been made for the loan of expert Navajo teach­
ers of silversmithing from the Division of Education of the Indian
Service. These experts advise reservation silversmiths who desire to
produce jewelry of the highest type.
Private groups are supplying the workmen with raw materials and adequate
wages. Even after visits to all local dealers, no work of a quality equaling the
products of the teachers and their students (with the exception of old pieces) has
been found to be on sale. The Board believes th at this project will not only pro­
duce a better source of income for the best silversmiths, but will also create a
demand for better jewelry and thus stimulate the production and trade for more
profitable merchandise all over this region.

Navajo textile project.—A certificate of genuineness has been devised
which is to be applied to Navajo wool textiles woven according to
traditional Navajo methods.

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

Education and Training

657

Textile home-industry project (eastern Oklahoma).—A special survey
lias been made by the Board in eastern Oklahoma where the traditional
crafts products have little market appeal or are no longer made. As
a consequence it is planned to introduce home industries that will
offer the workman an opportunity to profit from his skill and at the
same time to achieve a style of his own.
The making of homespun yarn is the first home industry to be
developed in this region. Market research has disclosed that most of
the homespun yarn used in this country is imported from abroad and
is very high priced. The Board has requested the Education Division
of the Indian Service to loan an expert spinning teacher as instructor,
and is hopeful that later it will be able to help in organizing an Indian
cooperative or credit association to carry on the work commercially.
The Board will also cooperate in developing markets for this yarn.
It is expected that this project will later be expanded to include
weaving and rug making.
Arts and crafts group project {western Oklahoma).—Recognizing the
strength of the old traditional arts and crafts societies in western
Oklahoma, the Board has started projects based on group activities.
One of the Board’s staff members has promoted the formation of
fairly large groups of Indians who are interested in the improvement
of the quality of their traditional tribal arts. In Anadarko and
Shawnee, production lias already begun, in cooperation with the local
agencies of the Indian Service and organized groups of local business
men who have realized that the development of these finer Indian
crafts is definitely advantageous to the whole region. Leatherwork
and beadwork will be the leading products under these projects.
Experimental laboratory, Tesuque, N. Mex.— In Tesuque last spring
a small laboratory was operated to experiment with the methods of
production of tanners, weavers, and silversmiths from different reser­
vations. The purpose of these experiments was to aid craftsmen to
discover the specific types of raw material most suitable for their
work and the best methods of production.
Legal protection of Indian products against unfair and fraudulent
advertising methods.—“With the aid of the United States district
attorney of the territory involved, the use of misleading labels on one
type of imitation Indian jewelry has been stopped; another case of
the same kind is in the hands of the attorney now. .Two cases of
false newspaper advertising have been referred to the Federal Bureau •
of Investigation for appropriate action.”
Indian exhibit at Paris World’s Fair.—Arrangement was made for
an Indian exhibit at the World’s Fair in Paris through the Board’s
cooperation with the American Federation of Arts.
Plans for Indian exhibit at San Francisco’s World’s Fair 1939.—
Representatives of the Indian Arts and Crafts Board have taken up

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

658

Monthly Labor Review— March 1038

with the World’s Fair authorities and private groups in San Francisco
the matter of an Indian exhibit at the 1939 Golden Gate International
Exposition. One of the Board’s staff members assisted in outlining
an exhibit plan which will show for the first time the whole range of
the Indian’s artistic ability in a dramatic and dignified manner.

TR A IN IN G PR O JEC TS FOR U N EM PLO Y ED YOUTH IN
CANADA
AS AN OUTCOME of recommendations made by the Youth Employ­
ment Committee of the Canadian National Employment Commission,
an item of $1,000,000 was included in the 1937-38 estimates of the
Dominion Department of Labor “to provide for development and
training projects for unemployed young people.” Provision was made
for entering into an agreement with each Province under which the
Dominion would grant 50 percent of the cost of specific training pro­
grams presented by the Province and approved by the Federal Govern­
ment, the Province to meet all administrative expenses. A resume of
the activities under this Dominion-Provincial program is published in
the Canadian Labor Gazette.1
Each Province submitted specific proposals based on conditions and
requirements in its own domain. Agreements effective until the close
of the fiscal year on March 31, 1938, were signed by all of the nine
Provinces. Up to the end of the calendar year 1937, about 16,000
young persons had had training under this Dominion-Provinciahplan.
The following four major types of projects were specified as coming
within the scope of the authorized scheme:
(a) Training projects of an occupational nature;
(b) Learnership courses in industry;
(c) Work projects to combine training with conservation and development of
natural resources;
(d) Physical-training programs to maintain health and morale.

These projects are open to all persons 18 to 30 years of age who are
not gainfully employed and are in necessitous circumstances. The
selection of beneficiaries is made by the Provinces subject to the
approval of the Dominion, without favor or discrimination as to race,
religion, or politics.
The program was given wide publicity so that young persons would
’ know of the available opportunities and also in order to secure the
cooperation of the public in carrying out the projects. The plan calls
for the use, as far as possible, of existing facilities and the fullest
possible cooperation on the part of public and private local organi­
zations. Advisory committees of interested persons, representing
' Canadian Labor Gazette (Ottawa), April 1937 (pp. 414-415); June 1937 (p. 596); January 1938 (pp. 28-29).


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

Education and Training

659

employers, labor, educational authorities, women’s organizations,
youth organizations, etc., were set up in numerous localities to aid in
carrying on the various projects.
The vocational guidance of young persons previous to occupational
training was provided for, and also physical education, recreation,
and other group activities whenever possible. Emphasis was given to
the importance of placing those who had satisfactorily completed a
course of training. Furthermore, special officers were assigned to
secure the cooperation of employers in the placement of trainees and
to aid industry to train learners and apprentices.
A weekly living allowance is provided for young persons attending
instruction courses away from home. In every Province training
courses in agricultural subjects are being given through the Pro­
vincial departments of agriculture. In Alberta, New Brunswick,
and Ontario provision has been made for the placement of over 700
selected young men from cities and towns as farm apprentices with
experienced farmers. These young men are to be instructed in the
various kinds of farm work, and some class instruction in special
courses is in contemplation. Aid is also being extended to selected
youthful farmers in Alberta, Manitoba, New Brunswick, Nova
Scotia, Prince Edward Island, and Saskatchewan, to make it possible
for these young men to take winter courses in agriculture at schools
and colleges. In the Maritime Provinces and Quebec particular
attention is given to instruction and leadership in rural cooperation.
In the summer and autumn of 1937, over 1,300 young men were
trained in forestry work on the Crown lands of British Columbia,
Manitoba, New Brunswick, and Ontario, under the direction of
officials of the Forest Service. In most of the camps class instruction
in subjects related to forestry and also organized recreation were
provided. Valuable results have been obtained in the conservation
and development of forest resources. At the time of the preparation
of the report under review, provision was being made for approximately
400 young men on projects for winter training in Alberta, Manitoba,
Prince Edw^ard Island, and Quebec. In New Brunswick opportuni­
ties for summer training in surveying, prospecting, and hand drilling
were also afforded.
About 600 youths took part in the mine-training projects of British
Columbia, Nova Scotia, Ontario, and Quebec. In British Colum­
bia, the placer-mining training was given in specially set-up camps,
and was followed by supervised prospecting in small groups for
several months, with grubstakes furnished by the project. In
Ontario the training is of a technical character, and the course of 6
months is given at the Haileybury School of Mining. Nova Scotia
and Quebec each offer a practical course in hard-rock mining in a
gold mine which the Province operates with a group of skilled miners

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

660

Monthly Labor Review—March 1938

and qualified mining men as supervisors. Each week a certain
amount of time is allotted to class instruction. Every trainee is
given a thorough medical examination and X-rays to ascertain
whether or not he will be physically fit for mine work after his training.
In Manitoba, Ontario, and Quebec, plans have been devised to
aid in training learners and apprentices in industry. Employers have
been canvassed, and “whenever they agree to take on young people
and train them in specific trades or occupations, they are relieved of
the cost of instruction, either through the provision of special classes,
or, in those occupations where class instruction is unnecessary,
through the payment of a weekly sum to the industry to meet the
cost of instruction on the job.” This amount varies, and also the
length of the period for which it is paid, according to the character
of the occupation. No subsidy is paid, however, to productive
wages, and safeguards are set up against overcrowding in the trades
or the displacing of older employees.
With the exception of Nova Scotia, all the Provinces have schemes
for providing occupational training for city youth, either in technical
schools or in other centers, to equip them for employment when it
becomes available.
A variety of opportunities was provided specially for young women. Schools
for training household workers have been established in some two dozen cities of
the nine Provinces. A 3-months intensive course will be given, with a placement
and follow-up service provided. In many of these schools the girls will live in
residence. Training will also be given in other specialized forms of work for
women. In the rural districts of all the Provinces courses of instruction will be
given in home economics, appropriate farm subjects, health, handicrafts, etc.

In British Columbia and Quebec definite projects have been under­
taken to provide physical education, recreation, and group activities
for young people, both men and women. The British Columbia
scheme is Province-wide and directed by the department of educa­
tion. The Quebec project is to be confined to the cities, and various
private organizations are to cooperate in carrying out the activities
contemplated.
The administration of the youth-training program is entrusted to
the following Provincial agencies: In Alberta, New Brunswick, and
Saskatchewan, to the department of education; in British Columbia,
Manitoba, Nova Scotia, and Ontario, to the department of labor;
in Quebec, to the department of trade and commerce; and in Prince
Edward Island, to the department of agriculture.


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

Older W

orkers

M E N OVER 40 IN E X E C U T IV E PO SITIO N S
THE value of men over 40 years of age in executive and higher-type
selling positions in wholesale and retail distribution and allied lines
was recently made the subject of a survey by the research committee
of the Sales Executives Club of New York City, and a questionnaire
was sent to several hundred members of the club.1 “For total value
to the organization,” 80 percent of the members replying to the
inquiry prefer men over 40, 86 percent of those who are themselves
over 40 and 64 percent of those under 40 expressing a preference for
men over that age.
According to the replies to the survey, 94 percent of the reporting
members of the club consider the man over 40 “more likely to be
conscientious about those phases of his work which are hard to check
up” ; 88 percent hold that among men with the same length of service
in an organization, the man over 40 is less likely to resign to take up
other work; and 81 percent are of the opinion that men over the age
in question are more inclined to have an open-minded attitude toward
criticism.
The following statement analyzes the replies received. The pro­
portion which regarded men over 40 as superior in each of the listed
qualifications is shown, and also the relative importance of each
factor in the total value of a man over 40 as an executive or expert
salesman in wholesale and retail distribution. In other words, the
figures in the first column show where such men are strong and where
they are weak, and those in the second column show where they
should be strong.
1 Age of Personnel in Relation to its Value in the Field of Wholesale and Retail Distribution, New York,
Polygraphic Co. of America, Inc., [1937?]; and Hardware Age, New York, Oct, 21, 1937, p. 140.


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

661

062

Monthly Labor Review—March 1938
Qualifications for work

Percent
prefer­
ring men
over 40

More likely to be conscientious about those phases of his work
which are hard to check up------------------------------------------Less likely to resign to go elsewhere (after having had the same
length of service in the organization)-----------------------------More likely to take an open-minded attitude toward criticism.
Less likely to want to try different methods merely for the sake
of being different_____________________________________
Less likely to become discouraged by failure to accomplish the
result expected_______________________________________
Likely to undertake an unpleasant assignment more willingly—
Less likely to “yes” his superiors when it is not necessary to do
so__________________________________________________
Less likely to have to be discharged (where the length of service
is equal)____________________________________________
Likely to turn out more production----------------------------------More likely to be cooperative generally----------------------------Less likely to become discouraged and upset by severe criti­
cism-----------------------------------------------------------------------Less likely to become unduly argumentative when he cannot
have his own way------------------------------------------------------More likely to do necessary overtime work cheerfully----------More likely to undertake a difficult assignment without an
unhealthy fear of criticism for failure-----------------------------More likely to bring into the organization new ideas of value----Less likely to persist in methods disapproved by the organiza­
tion________________________________________________
Less likely to have family complications adversely affecting
efficiency on the job-------------------- ;------------------------------Likely to finish an assignment in less tim e-------------------------More likely to accept wholeheartedly the fixed policies of the
organization_________________________________________
More anxious to learn and understand the policies of the or­
ganization___________________________________________
Less likely to lose time on the job for sickness or other reasons._
Likely to have more of the type of iniative that results in im­
provement__________________________________________
More likely to get into a new type of assignment (problem)
promptly------------------------------------------------------------------More likely to be careful of personal appearance-----------------More likely to adapt himself promptly to the policies of the
organization_____________________ ____________________
More likely to have the type of enthusiasm and cheerfulness
which is valuable to the organization------------------------------

Relative
rank in
total im­
portance

94

2

88
81

6

80

12

77
75

7
4

74

10

73
73
71

17

71

11

70
69

15
8

68
67

13
5

67

14

65
51

19
18

50

21

47
46

20
22

45

16

36
29

23
26

29

25

28

24

3

1

9

M AX IM U M H IR IN G AGES IN CANADIAN IN D U STRY
OF 7,725 firms included in a survey by the National Employment
Commission of Canada, 928 or 12.0 percent reported as of January
1937 that they had prescribed maximum hiring ages, 83.3 percent
stated that they had no maximum age at which employees were taken
on, and 4.7 did not report on this point. In September 1936 these
928 firms employed 302,379 persons, or 29.4 percent of the 1,028,750
employees of 7,725 firms. The following table shows the prescribed
maximum hiring ages in January 1937, by number of persons employed
in the reporting establishments : 1
• Canada. National Employment Commission. Report on Phases of Employment Conditions in
Canadian Industry, p. 42. Ottawa, 1937,


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

663

Older Workers in Industry

1

Number of Employees in Finns Reporting Maximum Hiring Ages as of January 1937

Total
num­
ber
of
firms

Industry

Num ber of employee s in firrns witi maxi mum
hiri ng agesTotal
num­
ber of
em­
70
Not
ploy­ 20-29 30-39 40-49 50-59 60-69 years speci­
ees 1 years years years years years and fied
over

All industries____ ____ ____________

928 302, 379 6,148 20,456 221,752 29,862 9,724

Primary industries_________________

22 1, 248 11,071
49 16, 731
1. 215
20 3,497
67
29 13, 234
22 1,181
9,856
5
593
143
1,163
8,867
17 10, 666
7
22
1,975
18
846
879 285', 648 6,126 19,208 210,681
19 24, 653
561 21,142
5 5’ 175
2, 225
14 19) 478
561 18; 917

M ining___________ _______ ._

__

Secondary industries______ _____ . . . .

Construction___________ ______

Manufacturing_________________

Electrical apparatus manufac-

54
21
5
28
503

46, 914 946
8,245
30
37' 467 916
1,202
96,478 1,701

1 September 1936.

4 6585— 38-

•7


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

8,445

7,053 1,448
5,995 1,043
591
467 405
57, 776 13,223 7,014

36,156
196
35,960

2, 347

173

966

14
29
49

972
4,145
8^740

416

98
483
596

523
3,059
3; 645

49
240
22
50
676 2, 331

7

21

2,972
6, 339

151
100

136
521
21
4

98
67
23

18,635
151
1,369
2,376

4,424
443

4,108
624

397
77

1,090

1,632
2, 899
7,960
' 455
63
5,364
2,246
2, 625
202

4,003
14
2,315

291
5,926
4,586
1,340
84', 317
4,302
7,407
68,049
< 559

200
898
319
579
2, 721
1,761
113
766
81

23
13

9, 363
1, 389

72

54
8
92
1
4
65
23
18
5

8, 723
93
3,102
14,892
431
'455
205
12,323 Ï, 496
7,355 1, 255
3 , 435 ' 119
122
' 670

19
129
57
72
109
49
10
33
17

863
14,260
895
i 1,404
610
2,856
285
91,020 1,088
7 ,918
28
7, 520
70, 536 1,060
5,046

929
2,978
814

2,

52
112
5, 698
5,383
' 315
1,439
1, 006
278
155

172 14,265
4
4

168 13, 353
65
65
20

1,204
894

20
148

310
8,171

1,023

22
35
938

2, 577
473
1,006 1,452
259
24

125
345
145

912
825
87
13
74

185

25

11 3, 372
20 6 ,498
1
35
Iron and steel products_______
73 23, 378
. 16
1679
58 4,497
Lumber and its products_____
12 2, 686
Musical instrument manufac-

Pulp and paper products and

87
87

737
2,737
215
1,171
522
1,566
' 194 243
283
279
1,089
27 ,125 8,987
2,885
2; 885

272
32
1,081

62
531
1,076
221
37
7
141

987
534
441

162
141
824

189
304

2,953

78
29
21

17
2,062
1,011
525
294

28
142
142
305
54
251

232
701
364
337
1,150
767
383

Industrial Hygiene
t*********************************************************************

NATIONAL HEALTH SURVEY, 1935-36
SIX MILLION persons are unable to work, attend school, or pursue
other usual activities each day during the winter months, on account
of illness, injury, or gross physical impairment resulting from disease
or accident, according to an estimate by the United States Public
Health Service based on a national health survey.1 A house-to-house
canvass was made during the fall and winter of 1935-36 by the
Public Health Service with the aid of grants from the Works Progress
Administration. The study covered 740,000 families in urban com­
munities in 19 States and 36,000 families in selected rural areas in 3
States, comprising a total of 2,800,000 persons. Earlier studies by
the Public Health Service and the Committee on the Costs of Medical
Care provided the background and the techniques used in the present
study, although the former studies were limited in both area and
family coverage as compared with the present study. It is stated
in the report that a very wide coverage is essential if, for a country
the size of the United States, analysis is to be made of the health
effects of the many differences in climate, racial composition, urbani­
zation, industrial activities, and economic status. It is also neces­
sary to canvass a very large population in studying the occurrence
and causes of the less frequent diseases, in order to obtain reports on
enough cases in various regions and population groups to permit
statistical analysis.
There is still a great deal of preventable illness in spite of the
advances in disease control in the past half century, and current data
on the effects of environmental and social economic factors are much
needed. Moreover, the increasing proportion of older persons in
the population makes the problem of chronic diseases of growing
importance, since there is a lack of data on the number of persons
suffering from such conditions and their age and sex distribution.
There is also need for information as to the cause and frequency
of accidents and the extent of the resulting disability. A plan for
1 United States Public Health Service. National Institute of Health. The National Health Survey,
1935-36. Preliminary Reports: Significance, scope, and method of a Nation-wide family canvass of sick­
ness in relation to its social and economic setting; Families distributed by income during the survey year;
An estimate of the amount of disabling illness in the country as a whole; Illness and medical care in relation
to economic status. Washington, 1938.

664


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

Industrial Hygiene

665

the provision of modern medical services for all sections of the popu­
lation depends upon knowledge of the extent of the need for each
kind of service. Such data are generally not available from regular
official records and there is only incomplete coverage in the statistics
furnished by insurance companies, workmen’s compensation boards,
etc., or the records of doctors, hospitals, and health agencies. The
true picture of care received in relation to needs, therefore, can be
obtained only through family reporting.
The major objectives of the Health Survey were to determine: (1)
The incidence and nature of serious disabling illnesses (those lasting
7 consecutive days or longer) during a 12-month period among a
nationally representative population; (2) the duration of such illnesses;
(3) medical care received; (4) the number and type of serious accidents
and impairments resulting from accidents; (5) the prevalence and
type of chronic conditions, orthopedic defects, blindness and deafness;
(6) the prevalence and kind of disabling illness on the day of the visit;
(7) the utilization of certain medical and public-health facilities such
as health clinics, tuberculosis sanatoria, and public-health nursing
services; (8) the relation between disease and social, economic, and
other conditions, such as income, employment status, occupation,
housing conditions, education, age, sex, and color; (9) mortality in
relation to income and other social and economic circumstances.
In order to make the survey nationally representative, 84 cities
distributed in 19 States were chosen, which were regarded as typical
of the four main geographic regions—East, four States; Central, five
States; South, six States; and West, four States. The cities chosen
represented four different size groups: 500,000 population or more;
100.000 to 500,000; 25,000 to 100,000; and less than 25,000; but in
order to avoid overrepresentation of large city populations, 31 cities
of more than 100,000 population and one smaller city (Montgomery,
Ala.) were only sampled, while 53 smaller cities were completely can­
vassed. The samples taken in the larger cities ranged from 5,000 to
45.000 schedules, on the basis of the number considered adequate to
represent the individual community as well as to complete the sample
on the basis of regional and size distribution. Of the 23 rural sections
studied, 16 were in Georgia, 4 in Michigan, and 3 in Missouri. These
localities were, of course, not entirely representative of the rural
population as a whole. The procedure followed in the sampling in
the larger cities was designed to secure, as far as possible, adequate
representation of the different population groups.
As the accuracy of the information gathered in a survey of this kind
depends largely upon the quality of the enumeration procedures,
extreme care was taken in establishing the field organization and
training and canvassing methods. Five administrative regions under
a supervisor were set up for the 19 States. A supervisor was appointed

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

666

Monthly Labor Review—March 1938

to handle administrative details in each State, thus leaving the
regional and local supervisors free to train and supervise the field
workers.
The thorough training given the enumerators, the publicity through
the press, radio, schools, and churches, and the interest and assistance
of State and local health officers and the medical societies resulted in
such general cooperation that 98.5 percent of the families asked to give
information complied with the request. As a check on the informa­
tion regarding cases of illness given by the families interviewed, the
name of the hospital or doctor who cared for an attended case was
secured. In these cases questionnaires were sent to the doctors or
institutions, and professional reports were secured on 350,000 of the
attended illnesses, or about 66 percent of the cases on which reports
were requested. Copies of nearly 14,000 death certificates were also
secured.
The enumeration was carried out between the early part of October
1935 and March 30, 1936, and each family reported illnesses experi­
enced during the 12 months preceding the day of interview, family
income during the same period, and any relief assistance received
during the year. The sickness and income information in the survey
as a whole, therefore, covers a period of 18 months, in which, while
the worst depths of the depression had passed, widespread unem­
ployment and want still prevailed. Families were classified as being
of the relief group if any assistance had been received from an official
agency within the 12 months. The net family income for others
than the relief group was estimated roughly for the preceding 12
months within the income classes $5,000 or more, $3,000 to $5,000,
$2,000 to $3,000, $1,000 to $2,000, and $1,000 and under. Persons
included in the term “workers” were regularly employed persons,
unemployed persons engaged on work relief, and totally unemployed
persons seeking work. Included in the latter category were persons
who were looking for their first job.
Certain definitions were adopted for the classification of the sick­
ness and impairment data. An illness was considered as a continuous
period of sickness, whether due to one or more causes, and a disabling
illness one which kept a person from his work, school, or usual ac­
tivities. No terminated disabling illnesses of less than 7 days’ dura­
tion were included in the survey, with the exception of confinements,
hospital cases, and fatal cases, which were included regardless of their
duration. A record was taken, however, of all disabling cases on the
day of the enumeration visit. Disabling illnesses were classified by
cause according to the nature of the specific diagnosis, and the dura­
tion of symptoms of the disease. For the purpose of a broad group­
ing, illnesses of less than 3 months’ duration were classified as “acute”
and those with symptoms of 3 months or more as “chronic.” Per
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Industrial Hygiene

667

manent handicaps resulting from disease, accident, or congenital
defect, including impaired or lost members or serious defects of vision
or hearing, were classified as impairments. Both disabling and non­
disabling impairments were included. Physicians’ care covered at­
tention received from a doctor of medicine or similar practitioner
in addition to that given by physicians in hospitals.
The distribution of the persons covered in the study was on the
basis of the household, the family income, and the relief status of the
family group. One family made up each household, consisting of a
group of persons or a single person, with one person designated as the
head. Family income included salaries, wages, business profits,
income from boarders and lodgers, and income from investments.
Families were considered to have received relief if, at any time during
the year, one or more of the members had been on work relief other
than the P. W. A. or C. C. C., or had received direct relief, mothers’
pension, pension for the blind, or any similar grant from public funds
administered by a Federal, State, or local government. The amount,
of the income of families which reported the receipt of relief was not
asked by the enumerators.
Extern of Disabling Illness
The estimate of 6,000,000 persons incapacitated in a single day was
made on the basis of the sickness records of 2,300,000 persons sur­
veyed in 81 of the cities canvassed, in which 4.5 percent of the number
were sick on the day of the canvass. The proportion of those sick
on an average winter day was found to vary widely with age. The
highest proportion of sickness occurred among persons 65 years of
age and over, as about 1 in every 8 was disabled on the day of the
survey. Among young persons aged 15 to 24 the proportion was
only 1 in 40. In childhood and in the working ages between 25 and
65 years the ratio was about 1 in 23. The variations in the incidence
of sickness according to age are based on an analysis of the cases
occurring in a group of 280,073 persons in 8 large cities as applied to
the total surveyed group in 81 cities.
Approximately a million and a half of the 6 million persons disabled
on the day of the canvass were suffering from acute respiratory dis­
eases—influenza, colds, tonsillitis, etc.—this high proportion being
due to the fact that the survey was made in the winter months when
these diseases are most prevalent. About 2% million persons were
disabled by chronic diseases (rheumatism, diseases of the heart and
circulatory system, arteriosclerosis, nephritis, cancer, and nonmalignant tumors, diabetes, asthma, tuberculosis, ulcer of the stomach,
diseases of the gall bladder, nervous diseases), and permanent im­
pairments resulting from earlier disease or accident. Accidents were

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

Monthly Labor Review—March 1938

668

the cause of disability in about 500,000 persons, and the acute infec­
tious diseases were responsible for the illness of about 250,000 persons,
mostly children. Acute diseases of the stomach and liver, and ap­
pendicitis, also caused about 250,000 cases of disability. The remain­
ing 1 million cases were caused by various other acute diseases.
The average frequency and severity of illnesses computed for the
surveyed groups are based on illnesses occurring in a 12-month period
and lasting more than 7 days. Among the persons surveyed these
illnesses averaged about 172 per 1,000 persons canvassed. If this
average is applied to the entire population of the United States, there
were about 22 million illnesses disabling for a week or longer, or about
16 such illnesses for each death occurring in 1935, the approximate
survey year. This figure is regarded as a minimum since it does not
include the illnesses of short duration.
Table 1 shows the frequency and severity of illness by age of
2,308,588 persons in 81 cities canvassed in the National Health
Survey, 1935-36.
T able

1.— Frequency orul Severity of Illness, by Age, of Persons Canvassed in National
Health Survey, 1935-36

Age group

Disabling
illnesses
per 1,000
persons

Average
days of
disability
per case 1

Average
days of
disability
per person
per year 2

172

57

9.8

232
144
265

26
63
123

6.0
9.1
32.6

1 Average for a surveyed group of 280,073 persons in 8 large cities.
1 Estimated on basis of severity of illness in surveyed group of 280,073 persons in 8 large cities—Atlanta,
Ga.; Cincinnati, Ohio; Dallas, Tex.; Fall River, Mass.; Newark, N. J.; Oakland, Calif.; St. Paul, Minn.;
Seattle, Wash.

An average of 57 days of disability for cases of illness lasting 1 week
or longer observed among the group of 280,073 persons in 8 large
cities, applied to the total illness rate of 22 million cases, shows that
nearly 1% billion days are lost annually from home and industrial
work or from school in the country as a whole.
There is great variation in the severity of diseases, and in contrast
to the average of 57 days of disability per case for all types of cases,
an average of 138 days per case was shown for disabling illness due to
chronic disease. Chronic diseases occurred with about the same fre­
quency as acute respiratory diseases, but the duration of the average
chronic case was found to be over seven times as long as the average
case of respiratory disease.
Table 2 shows the frequency and severity of illness classified by
cause in broad diagnosis groups.

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

669

Industrial Hygiene
T able 2.— Frequency and Severity of Illness, by Cause
Disabling
illnesses
per 1,000
persons

Diagnosis group

Digestive (chiefly acute) __________ _ ____________ .
Chronic diseases 3____ _

___ . .

__________________________________

Average
Average
days of
days o f
disability
disability per person
per case 1 per year 2

172

57

9. 8

29
47
9
15
16
46
10

24
19
49
34
46
138
78

.7
.9
.4
.5
.7
.3
.8

1 Average for a surveyed group of 280,073 persons in 8 large cities.
2 Estimated on basis of cases of disability in 8 large cities.
3 Included in broad group of illnesses due to chronic disease were gross permanent impairments, for which
the rate was 3 per 1,000 persons.

The number of cases of orthopedic conditions and gross permanent
impairments, both disabling and nondisabling, was considered to be
of particular interest because of the lack of such information for the
general population. The data covering 2,308,588 persons in 81 cities
showed that 2 percent had lost various members or had permanently
impaired members. The average number of cases of orthopedic
conditions was 19.6 per 1,000 persons, the average for lost members
(feet or legs, hands or arms, fingers, toes) being 7.4 per 1,000 and for
impaired members, including the spine, 12.2 per 1,000. The average
number of cases of blindness in one eye was 3.4, partial blindness 2.0,
and total blindness 0.9 per 1,000. Deafness, either partial or total
and including the deaf and dumb, had an average of 13.0 cases per
1,000 .

Illness and Medical Care in Relation to Economic Status
Classification of the urban population of approximately 2% million
persons by income status shows that persons in families with annual
incomes under $1,000 formed about 40 percent of the group can­
vassed; 65 percent were in families with annual incomes under $1,500;
and 80 percent were in families with incomes under $2,000. Almost
one-half of the lowest income group had received relief during 1935.
Thus, two of every five persons surveyed were in the lowest income
group, the same proportion were in the group with incomes of $1,000
to $2,000, and only one in five were in families with an income in excess
of $2,000.
For those in the lowest income group, the report states, it is evident
that inadequate diet, poor housing, occupational hazards, and the
instability of the labor market create serious health problems. Ear­
lier surveys have shown that the frequency of illness is highest among
the poor—a finding confirmed by preliminary data from the present
study. Disabling illness lasting 1 week or longer in a 12-month period

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

Monthly Labor Review—March 1938

670

occurred among families on relief at a rate 57 percent higher than in
families with annual incomes of $3,000 and over. For acute and
chronic illnesses the rates were 47 percent and 87 percent, respectively.
During the year, two persons on relief were disabled for 1 week or
longer by chronic illness for every disabled person in the middle and
highest income groups.
Persons in families just above the relief level—that is with incomes
under $1,000—experienced an illness rate lower than the relief popula­
tion but 17 percent higher than the rate for the highest income class.
This is shown in table 3, which gives the annual frequency of illnesses
disabling for 1 week or longer for the different family income groups
among 2,308,588 persons in 8 cities in 1935-36:
T able 3.— Annual Frequency of Illness Disabling for 1 Week or Longer as Related to

Annual Family Income, 1935-36
Disabling illnesses per 1,000 Ratio to rate among families
persons—12-month period
with incomes of $3,000 and over
Annual family income and relief status
All ill­
nesses

Relief families_________ _ _ _ ____ _
Nonrelief families:
Under $1,000_______ _______ ____
$1,000 to $2,000____________________
$2,000 to $3,000____________________

Acute

Chronic

All ill­
nesses

Acute

Chronic

172

124

48

234

163

71

157

147

187

174
155
150
149

119
117
113
111

54
38
37
38

117
104
101
100

107
105
102
100

142
100
98
100

1

T able 4.— Frequency and Severity of Acute and Chronic Illness as Related to Annual

Family Income, 1935-36

Annual family income and relief status

Disabling illnesses
per 1,000 persons
Acute

Chronic

Days of disability
per case 2
Acute

Chronic

Annual days of dis­
ability per person 3
Acute

Chronic

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

124

48

26

138

3. 2

6.6

Relief—. _____ ____ ____ . _______
Nonrelief:
Under $1,000_____________________
$1,000 to $2,000____________________
$2,000 to $3,000____________________
$3,000 and over___ _________ _ . . .

163

71

27

168

4.4

11.9

119
117
113
111

54
38
37
38

26
24
25
25

159
127
116
103

3. 1
2.8
2.8
2.7

8.6
4.8
4.3
3.9

All incomes.........

1 Disabling for 1 week or longer in a 12-month period.
2 Average number of eases in a surveyed group of 280,073 persons in 8 large cities.
3 Estimated on basis of disability in group of 280,073 persons.

The frequency of illness—that is, the number of cases occurring
during the year—and the severity of illness, or the duration of the
average case, are the two factors determining the annual volume of
illness. It was shown in the study that not only do relief and lowincome families experience more frequent illness during a year than
the higher income groups, but their illnesses are, on the average, of

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

Industrial Hygiene

671

longer duration. As shown in table 4, covering 2,308,588 persons in
81 cities, the average case of disabling chronic illness among persons in
relief families was 63 percent longer in duration than the average case
in the group of incomes of $3,000 and over. Combined with the higher
frequency of chronic illness in the relief group, the volume of disability
in this group is three times as great as in the upper-income families—
11.9 days as compared with 3.9 days per person.
In addition to the larger number of cases of disability in the families
of the lower income and relief groups, these groups also received less
medical care, 83 percent of the cases in the highest income class being
attended by a physician as compared with 70 percent among the
relief families. Of the attended cases fewer physician’s calls per case
were also received by the low-income or relief families, although a
higher proportion of these families received care from a visiting
nurse. However, this service, it is stated in the report, does not
compensate for continuous bedside nursing care which is needed in
certain severe types of illness. In contrast to the lower rates for
care by physicians and private-duty nurses, the surveyed relief
population received hospitalization at an annual rate of 63 cases per
1.000 persons, as compared with a rate of 45 per 1,000 persons in the
liighest-income group. When the hospital cases were related to the
number of disabling illnesses, however, the relief group were found
to receive hospital care in a somewhat lower proportion. The lowest
hospitalization rate—24 percent of all disabling illnesses—was found
in the group of nonrelief families with incomes under $1,000.
According to a preliminary analysis of the data on hospital care, it
appeared that the relatively large volume of hospital care received
by relief and low-income families prevailed only in the cities of
100.000 population and over, and that the provision of this care
decreased with the decrease in the size of the cities, reflecting the
greater inadequacy of free hospital facilities in the smaller com­
munities.
HEALTH OF INSURED WAGE EARNERS IN 1937
THE BEST health record in the experience of the company was
attained among the 17,700,000 industrial policy holders of the Metro­
politan Life Insurance Co. in 1937.1 This large group is made up
almost entirely of wage earners and their dependents. The new low
mortality rate for all causes of death combined was 8.221 deaths per
1.000 insured lives, a reduction of 2.1 percent from the figure for 1936.
Best records were registered for eight causes of death—typhoid fever,
scarlet fever, tuberculosis, chronic nephritis, puerperal diseases,
1 Metropolitan Life Insurance Co. Statistical Bulletin, January 1938: Nineteen Thirty-seven a Star
HealUi Year.


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

672

Monthly Labor Review—March 1938

homicides, accidental burns, and railroad accidents—while the com­
bined rate for all forms of accidental death was lower than ever
before. In 7 of the 12 months of last year (May to September,
inclusive, November, and December), the lowest death rate of all
time for each of these individual months was recorded, while Sep­
tember had the lowest death rate for any month in any year covered
by the company’s records. The average length of life, or expectation
of life at birth among the policyholders, reached a new maximum in
1937 of 60.7 years, an increase of a third of a year over the 1936
figure, and of approximately 14 years over the expectation of life
(46.63 years) a quarter of a century ago.
The crude death rate among weekly premium-paying policyholders
aged 1 year and over was 35.8 percent below that for 1911, the first
year of the Metropolitan’s series of comparable mortality records. If
the same mortality had prevailed in 1937, there would have been
237,693 deaths in this group instead of the 139,816 which actually
occurred. Although the death rate in the general population has also
declined during this period, the decline has been more marked among
the industrial wage earners. This reduction in mortality is ascribed
in considerable part to the welfare activities of the life-insurance com­
pany. Analysis of the mortality record by age groups shows that the
decline has been particularly evident among children, adolescents, and
young adults, but has obtained in all age groups up to 65. Beyond
that age there was a slight rise above the mortality rate for 1936. The
improvement over conditions a quarter of a century ago is shown by
the fact that for early childhood the 1937 death rate was less than onequarter of that recorded in 1911, and for every age group up to 45 the
mortality has been reduced to one-half of the earlier figure or less.
The downward trend in mortality from tuberculosis which has pre­
vailed among the insured group for a long period was continued in
1937. Figures for 1937 regarding the rate from this disease in the
general population are not yet available, but provisional figures for
1936 indicate that there was perhaps a slight increase in that year over
the 1935 rate. During the last quarter century the decline in the
death rate from this cause has been greater among the insured group
than in the general population, and this holds true for both males and
females and for Negroes as well as for white persons. This means, it
is pointed out in the report, that the section of the population where
the tuberculosis problem was formerly most serious has benefited most
from the efforts to eradicate the disease. Further, it is said, the cumu­
lative effects of unemployment and poverty during the depression
years have not had the unfavorable effect on the tuberculosis death
rate which might have been expected. Tuberculosis as a cause of
death ranks seventh, however, in the principal causes of death, and is
still an extremely important public-health problem.

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

Industrial Hygiene

673

Typhoid fever in 1937 showed a reduction of 96 percent in the
mortality rate over the quarter-century period. In spite of the
generally favorable showing for this disease, however, there are still
States and localities which have high rates.
The combined death rate for the four principal communicable dis­
eases of childhood—measles, scarlet fever, whooping cough, and
diphtheria—rose from a rate of 6.5 per 100,000 in 1936 to 7.5 in 1937.
This increase was due principally to a sharp increase in the rate for
whooping cough, which rose from 1.7 deaths per 100,000 in 1936 to
3.0 deaths per 100,000 in 1937. Measles and diphtheria, which had
registered new low rates in 1936, also rose slightly. However, com­
pared with the figures for 1927 there had been a reduction of 69 per­
cent in the combined rates for the four diseases. Of these diseases
the greatest interest attaches to diphtheria where the largest reduction
in mortality has occurred. In spite of the slight rise in 1937, the rate
for this disease has been cut in two in 5 years, reduced by more than
80 percent in 10 years, and by 93 percent since 1911.
Influenza and pneumonia had a combined mortality approximately
the same as in 1936, but the death rate for pneumonia alone showed
an improvement over the previous year. There was a widespread
prevalence of influenza in the first part of 1937, accompanied by sharp
increases in mortality both for this disease and for pneumonia. In
many thousands of pneumonia cases, however, influenza is not a
factor, and the reduction of the mortality rate from this disease is
considered significant in view of the new serum treatment, which it
is estimated could reduce the mortality from this disease throughout
the country by at least one-half if it were used in all cases of lobar
pneumonia.
There has been a continued reduction in the death rate from puer­
peral diseases among insured women over a long period. The rate
had fallen from 15.5 per 100,000 in 1927 to a new minimum of 6.8 in
1937—a decline of 56 percent. This reduction is affected to a con­
siderable extent by the falling birth rate with the consequent reduced
exposure to these risks, but the fall in the puerperal death rate has
been much greater than that in the birth rate and reflects the effects
of the intensive drive against the avoidable risks of the puerperal
state.
The systematic downward trend in the mortality rate from chronic
nephritis continued in 1937, when a new low mortality rate of 54.6
per 100,000 was registered. The crude rate for heart disease, which
holds first place among all the causes of death, dropped slightly in1937. The improvement occurred among young persons, where most
of the deaths are caused by chronic endocarditis, which is induced
mainly by infectious diseases. The upward trend among older per­
sons continued. The crude death rate for cancer, second in impor
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

674

Monthly Labor Review—March 1938

tance as a cause of death, was very slightly above the 1936 rate, in
which year the first decline in many years was recorded. The rise
in the cancer rate from 68.0 in 1911 to 94.1 per 100,000 in 1937 is not
a measure, however, of the actual rise in cancer mortality, since shifts
in the age distribution of the policyholders and the continual improve­
ment in the diagnosis of internal cancers may account for a very large
part, if not the whole, of the increase in the death rate.
The death rate for diabetes continued to rise to a new maximum
of 25.0 per 100,000 in 1937. However, the death rate is declining
among persons under 45 years of age, and in the older ages, where
the mortality is greatest, the rise in the mortality rate is now very
slight. The use of the new protamine insulin, which as been definitely
proved of value in the past year, is said to hold hopes of improved
longevity among diabetics.
Deaths from alcoholism among the industrial policyholders declined
from 2.2 per 100,000 in 1936 to 1.8 in 1937—the lowest rate for this
disease in 16 years. The total number of deaths was only 323 out of
the total of 17,700,000 persons.
Suicides and homicides have both declined in number. The rate
for death from suicide was 8.8 per 100,000 as compared with 10.6 in
1932—the highest rate in a 20-year period. The homicide death
rate, which was 5.0 per 100,000 in 1936, declined to the new all-time
minimum of 4.7 in 1937. The lowest death rate from all kinds of
accidents in any year was also recorded, the rate being 53.6 per
100,000 as compared with 57.7 in 1936. This favorable showing was
made in spite of increased employment with resultant increased
exposure to industrial hazards, as compared with the worst years of the
depression. In contrast with the generally lowered accident rate,
that for automobile accidents increased from 20.1 deaths per 100,000
in 1936 to 20.9 in 1937, an increase of 4 percent. It appears that,
if the estimate of 40,000 automobile fatalities in the United States
in 1937 is confirmed later by official figures, last year will register a
higher death rate from this cause than has ever before been recorded.


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

Industrial Accidents

INJURY EXPERIENCE IN 30 MANUFACTURING
INDUSTRIES, 1935 AND 1936 1
DISABLING industrial injuries in 30 manufacturing industries de­
creased in both frequency and severity in 1936 from the 1935 levels, as
shown by reports to the Bureau of Labor Statistics covering 7,169
identical establishments in 30 manufacturing industries.2 The fre­
quency rate for the industries as a group declined from 17.94 in 1935
to 17.07 in 1936, and the accompanying severity rate from 2.32 to
2.05.3
T able

1.— Summary of Injury Experience for Identical Establishments in 30
Manufacturing Industries, 1935 and 1936
Item

Total man-hours of exposure (thousands)_____ ___ ________
Total number of disabling injuries_______________________
Injury frequency rate i________________ _______ ____ ____
Injury severity rate 1___________________ _______________

1935
3,933,838
70, 559
9,113, 629
17.94
2.32

1936

Percentage
change

5,001,923
85, 387
10,230,233
17.07
2.05

+27.2
+21.0
+12.3
-4 .8
-11.8

1 Computed from combined unweighted data for identical establishments.

For all industries covered in the survey in 1936 the number of man­
hours worked increased by 1,068 million, or 27.2 percent over 1935,
the number of disabling injuries increased 14,828, or 21.0 percent,
and the number of days lost increased 1,117,000, or 12.3 percent.
The frequency rate decreased 4.8 percent and the severity rate 11.6.
These decreases are significant because, although a greater number of
injuries occurred and a greater number of days were lost than in 1935,
actually fewer workers were injured and fewer days were lost in pro­
portion to the man-hours worked. Further expressed in terms of
disabilities per 1,000 injuries, the number of fatalities and permanent
disabilities decreased from 81 to 74. In other words, there were 7
1 This article was prepared by Roy F. Fleming and Jacob Lotven, Bureau of Labor Statistics, under
the direction of Swen Kjacr.
2 The policy of restricting statistics to data furnished by identical establishments for 2 successive years,
although tending to narrow the sample, results in a compensating gain of stricter comparability. Shifts in
the sample for each 2 successive years give somewhat different rates for any 1 year, depending on whether
the comparison is with a preceding year or a succeeding year. To illustrate, the 1935 frequency rate was
18.03 in the 1934-35 comparison and 17.94 in the 1935-36 comparison.
3 The injury frequency rate is the average number of disabling injuries for each million man-hours worked.
The injury severity rate is the average number of days lost for each thousand man-hours worked, The
term ‘‘injury” connotes a disability which involves loss of time beyond the day or shift on which the injury
occurred, or a permanent impairment of some member of the body, even if not accompanied by lost time.
The standard time-loss ratings for fatalities and permanent disabilities are given in “ Method of compiling
industrial injury rates,” approved by the American Standards Association, 1937,


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

675

Monthly Lahor Review—March 1938

676

fewer deaths and permanent disabilities for every 1,000 injuries in
1936 than in 1935. This shift toward less severe injuries is further
reflected in the average time lost per disability. For the permanent
partial disabilities the average days lost decreased from 923 days per
injury to 902, and for temporary total disabilities, from 19 to 18.
Total Injury Experience
The detailed injury data and the resulting injury rates for each of
the 30 manufacturing industries are given in table 2. The data in
this table include, for a number of States, estimates of disabling
injuries which did not outlast the waiting periods specified by the
workmen’s compensation acts, and consequently were not reportable
to the State agencies administering such acts.4

—

Injuries and Injury Rales for 7,169 Identical Establishments in 30
Manufacturing Industries by Extent of Disability, 1935 and 1936

T able 2.

1935
Number of injuries

Industry

All industries..........................

ManEstab­ hours
lish­ worked
ments (thou­
sands)

7,169 3, 933,838

Resulting in—
Per­
ma­
nent
Death total
disa­
bility
476

Per­
ma­
nent
par­
tial
disa­
bility

Tem­
po­ Total
rary
total
disa­
bility

Total
time
lost
(days)

Fre­ Se­
quen­ ver­
ity
cy
ra te 1 rate1

35 5,193 64,855 70, 559 9,113,629 17.94 2.32

1
Agricultural implements___
4
189 1,866 2,060
215, 328 30.18 3.16
84
68, 247
0
660 6,054 6, 754
861, 967 11.19 1.43
40
136 603, 723
Automobiles-------- -----------Automobile tires and rubber
0
147, 766 16.99 1.42
goods------- -------------------42 104,075
8
73 1,687 1, 768
2
1
122,375 9.95 .72
95 1,600 1,698
170, 609
Boots and shoes................ .
219
1
29 1,086 1,126
104, 530 36.00 3.34
Brick, tile, and terra co tta...
10
358
31,278
1
0
278
Carpets and rugs....................
21
33 244
38,961 12. 71 1.78
21,870
Chemicals........ .......................
96, 541
1
181
29
127 1,198 1, 355 355, 781 14.04 3. 69
4,189
392,045
13.23 1.24
Cotton goods_____________
14
1
231
3,943
293
316, 606
Electrical machinery, appara2,392
22
1
351
2,766
457,
299
9. 67 1.60
tus, and supplies.................
238 285,936
24 429 460
Fertilizers............... ................
7
0
79,834 41.67 7.23
136
11,040
Flour, feed, and other grain8
2
52
779 841
154,624 25. 22 4.64
314
33, 342
mill products.___ _____
Foundry and machine-shop
4
202, 553
25
741
439 5,295 5, 763
668,051 28. 45 3.30
products_______________
12
2 244 1, 757 2,015
308,411 20.31 3.11
99,196
Furniture_________ ______
371
182, 546 21.81 1.78
102, 311
13
0
81 2,137 2, 231
139
Glass............................... ........
52 445
21, 539
0
497
31. 330 23.07 1.45
77
0
H ardw are........................... .
780, 349
119
3 824 10, 676 11, 622 1, 678, 295 14.89 2.15
Iron and steel.. ________ . 2 1, 756
141
6
85 1,292 1,383
141,486 22.58 2.31
Leather_______________ ...
61, 238
0
21
62 1,102 1,186
252, 551 77.05 16.41
Logging--------------------------61
15,392
1
Lumber:
6
1
79 1,037 1,123
30,197
143, 581 37.19 4. 75
Planing mills.___ _____
259
604,612 62.85 9.87
61, 211
22
6 261 3, 560 3,849
Sawmills________ ____
260
1 Computed from combined unweighted data for identical establishments.
The injury frequency rate is the average number of disabling injuries for each million man-hours worked.
The injury severity rate is the average number of days lost for each thousand man-hours worked. The
standard time-loss ratings for fatalities and perm rient disabilities are given in Method of Compiling In­
dustrial Injury Rates, approved by the American Standards Association, 1937.
2 Departments.
1 These States with the respective durations of temporary disabilities which are not reportable are:
Wisconsin, 3 days; Illinois, Michigan, New Jersey, and New York, 1 week; and Alabama, 2 weeks. Cali­
fornia is included in this group because no statistics are available for temporary total disabilities and
Oklahoma because no statistics of the type required are available for fatalities.


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

Industrial Accidents

677

T able 2.— Injuries and Injury Rates for 7,169 Identical Establishments in 30

—Continued

Manufacturing Industries by Extent of Disability, 1935 and 1936
1935—Continued
Number of injuries

Industry

Machine tools..................... .
Paper and p u lp ..___ _____
Petroleum refining.................
Pottery__________________
Shipbuilding, steel and wood.
Slaughtering and meat packing-------- ------ ---------------Stamped and enameled ware.
Steam fittings, apparatus,
and supplies...................... .
Stoves.............................. ........
Woolen goods................... .

M an­
Estab­ hours
lish­ worked
ments (thou­
sands)

Resulting in—
Per­
ma­
nent
Death total
disa­
bility

Per­
ma­
nent
par­
tial
disa­
bility

Tem­
po­ Total
rary
total
disa­
bility

Total
time
lost
(days)

Fre­
quen­
cy
ra te 1

Se­
ver­
ity
rate1

19.15
27.22
11.86
15. 66
16.03

2.29
3.31
2. 78
.99
3.05

122
302
92
78
65

36,815
173, 942
87, 742
32, 508
46, 597

7
31
11
3
12

0
0
3
0
0

43
655
705
272 4,432 4, 735
112 915 1,041
15 491
509
65 670
747

84, 326
575,244
244,046
32, 211
142,099

198
97

199, 742
48, 670

26
6

2
1

350 4,819 5,197
952
107 838

549,147 26.02 2.75
145, 786 19. 56 3.00

92
120
176

29, 329
36, 625
124, 585

1
5
5

3
0
1

38
574
616
67 1,015 1,087
133 1,867 2,006

65,434 21.00 2.23
111,994 29. 68 3.06
221,969 16.10 1.78

1936
All industries.........................

7,169 5,001, 923

583

Agricultural implements___
84
97,123
Automobiles______________
136
643, 374
Automobile tires and rubber
goods_____ ____________
42
144,412
Boots and shoes.......................
219
181,957
Brick, tile, and terra c o tta ...
358
49, 527
Carpets and rugs....................
21
26, 980
Chemicals________________
133,990
181
Cotton goods_____________
293
372,207
Electrical machinery, apparatus, and supplies.............
238 440, 941
Fertilizers._____ __________
136
11,144
Flour, feed, and other grainmill products.......................
49,052
314
Foundry and machine-shop
products_____ _________
329, 350
741
371
145, 730
Furniture______________ _
Glass........................................
139
114,731
Hardware____ ___________
77
30, 737
Iron and steel_____________ 3 1, 756 1,018. 563
L eath er...................................
141
66,817
Logging---- ----------------------61
18,466
Lumber:
Planing mills____ _____
259
42, 398
Sawmills_____ ________
260
75, 556
Machine tools________ ____
122
62,195
Paper and pulp_______ ____
302
211,654
Petroleum refining................
92
107, 082
Pottery_____ ____________
78
34. 247
Shipbuilding, steel and wood.
65
68,320
Slaughtering and meat packing------------------------------198 233,766
Stamped and enameled ware.
62, 214
97
Steam fittings, apparatus,
and supplies____________
92
45, 424
Stoves......................................
120
54,430
Woolen goods........................ .
176
129,536

9
35

31 5,675 79,098 85,387 10,230,233 17.07 2.05
1
1

183 1, 738 1,931
594 5, 708 6,338

197,169 19.88 2.03
753, 648 9.85 1.17

16
3
14
0
21
10

0
0
0
0
4
0

94
77
52
31
137
223

216,399
114,509
155, 566
30, 285
336,175
382,402

26
7

1
0

369 3, 006 3,402
13
385 405

482,647 7.72 1.09
69,652 30.34 6.25

68 1,115 1,195

173,797 24. 36 3. 54

2,041
1, 541
1,863
222
1,326
4,549

2,151
1,621
1,929
253
1, 488
4,782

14.89
8.91
38.95
9.38
11.11
12.85

1.50
.63
3.14
1.12
2. 51
1. 03

10

2

42
6
15
1
170
4
26

5
1
2
0
5
0
0

510 7, 379 7.936
842, 223
291 2, 251 2,549
321,772
58 2, 076 2,151
195,427
60 481
542
47,046
964 14,921 16,060 2,142, 392
73 1,128 1,205
114,484
54 1, 606 1,686 . 269,508

24.10
17.49
18.75
17.63
15. 77
18. 03
91.30

2. 56
2. 21
1.70
1. 53
2.10
1.71
14. 59

14
35
6
25
19
3
20

0
1
0
1
3
0
0

117
292
53
322
128
10
89

34.29
67.66
15.24
24.93
10.42
15. 21
20.07

5.44
9.11
1.47
3.01
2. 49
1.03
3. 24

24
4

0
1

373 5,968 6,365
161 1,130 1,296

587,210 27.23 2.51
160, 371 20.83 2. 58

7
7
4

2
1
0

36 910 955
91 1,475 1,574
152 1,619 1,775

87, 515 21.02 1.93
148,309 28.92 2. 72
230,966 13. 70 1.78

1, 323
4,784
889
4,928
966
508
1, 262

1,454
5,112
948
5,276
1,116
521
1,371

230,465
688,340
91,664
637,430
266,191
35,199
221,472

1 Computed from combined unweighted data for identical establishments.
The injury frequency rate is the average number of disabling injuries for each million man-hours worked.
The injury severity rate is the average number of days lost for each thousand man-hours worked. The
standard time-loss ratings for fatalities and permanent disabilities are given in Method of Compiling In­
dustrial Injury Rates, approved by the American Standards Association, 1937.
3 Departments.


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

678

Monthly Labor Review—March 1938

Of the 30 industries covered, 22 experienced decreases in tlieir fre­
quency rates, and 8 experienced increases. Agricultural imple­
ments with a decrease of 10.30 points in frequency rate, from 30.18 in
1935 to 19.88 in 1936, showed the most marked improvement in
decreasing the number of disabling injuries per million hours worked.
Seven other industries experienced significant decreases in frequency
rates: Hardware decreased in frequency rate from 23.07 in 1935 to
17.63 in 1936; fertilizers, from 41.67 to 36.34; leather, from 22.58 to
18.03; foundries, from 28.45 to 24.10; machine tools, from 19.15 to 15.24;
carpets and rugs, from 12.71 to 9.38; and glass, from 21.81 to 18.75.
Decreases of a noticeable degree also occurred in chemicals, from 14.04
in 1935 to 11.11 in 1936; planing mills, from 37.19 to 34.29; furniture,
from 20.31 to 17.49; woolen goods, from 16.10 to 13.70; paper and
pulp, from 27.22 to 24.93; and automobile tires, from 16.99 to 14.89. De­
creases in the frequency rates in the other eight industries were slight.
Logging experienced the sharpest increase in frequency rate, rising
from 77.05 in 1935 to 91.30 in 1936. Sawmills and shipbuilding also
suffered proportionately large increases in frequency rates. The shift
was from 62.85 to 67.66 in the former, and from 16.03 to 20.07 in the
latter. Other increases in frequency rates were slight. Logging with
a frequency rate of 91.30 in 1936 experienced the highest number of
injuries per 1 million man-hours worked. Although sawmills ex­
perienced a decrease in frequency rate for 1936, it had the second
highest rate.
Highly favorable shifts in severity rates were experienced by all
but 6 of the 30 industries. With a decrease of 1.82, from 16.41 to
14.59, the logging industry experienced the sharpest decrease in
severity rate. Sharp decreases in severity rates occurred in agri­
cultural implements, from 3.16 in 1935 to 2.03 in 1936; chemicals,
from 3.69 to 2.51; and flour mills, from 4.64 to 3.54. Noticeable
shifts in severity rates were also experienced by a number of additional
industries. In the fertilizer industry the severity rate decreased from
7.23 in 1935 to 6.25 in 1936; furniture, from 3.11 to 2.21; machine
tools, from 2.29 to 1.47; sawmills, 9.87 to 9.11; foundries, 3.30 to 2.56;
carpets and rugs, 1.78 to 1.12; leather, 2.31 to 1.71; and electrical
apparatus, 1.60 to 1.09.
The only industry with a marked increase in severity rate was
planing mills, with an increase from 4.75 in 1935 to 5.44 in 1936.
Increases in severity rates in the other industries were slight. One
industry, woolen goods, retained the same severity rate (1.78) in
both years. Although in 1936 logging experienced the greatest
decrease in severity, it still retained the most unfavorable rate. Saw­
mills came next, and fertilizers third.


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

Industrial Accidents

679

Correlation of Changes in Exposure, Frequency, and Severity
In all industries, as shown in table 3, increases in exposure occurred
in 1936 over 1935 in the reporting identical establishments. Corre­
lated with increases in exposure were decreases in frequency and
severity rates in 17 out of the 30 industries.
Seven industries—brick, iron and steel, logging, sawmills, slaughter­
ing and meat packing, stamped and enameled ware, steam fittings—
experienced increases in frequency rates in 1936 over 1935 and de­
creases in severity rates. Automobile tires, hardware, planing mills,
and pottery experienced decreases in frequency rates and increases
in severity rates. The only industry that showed an increase in
both severity and frequency rates, along with the increase in exposure,
is shipbuilding.
T able 3.— Changes in Exposure, Frequency, and Severity Rates for Identical

Establishments in 30 Manufacturing Industries, 1935 to 1936
Man-hours worked

Frequency rate

Severity rate

Industry
Increase Decrease Increase Decrease Increase Decrease
All industries________________________
Agricultural implements_________ _
Automobiles...........................
Automobile tires and rubber goods______
Boots and sh o e s__________
Brick, tile, and terra cotta___ ______
Carpets and rugs_____________________
Chemicals _______ ___________ . . .
Cotton goods.. . _____________
Electrical machinery, apparatus, and supplies______ _____________________
Fertilizers ___ __________________
Hour, feed, and other grain-mill products.
Foundry and machine-shop products.. . _
Furniture________________
Glass___________________________ .
Hardware ___________________
Iron and steel________ _______
Leather_____ _______ ______ ..
Logging ___________________________
Lumber:
Planing m ills._. __________ _____
Sawmills__________________ _____
Machine tools ______________
Paper and pulp________________ ____
Petroleum refining___ ___________ ____
Pottery____ ________________________
Shipbuilding, steel and wood_____ ____
Slaughtering and meat packing_________
Stamped and enameled ware____ . . . _ .
Steam fittings, apparatus, and supplies...
Stoves____ _________ _______________
Woolen goods______ _________________

*
X

x

x
x
X

X
X

x
"

X

x
x

\
X
X

x

X
X

.

0)

(9

i Same rate for both years.

To recapitulate, in over half of the industries increased exposure
was accompanied by decreased frequency and severity rates. In only
one industry the opposite condition held true. A little less than a
fourth of the industries experienced increased frequency rates and
decreased severity rates along with increased exposure, and about
an eighth of the industries showed decreased frequency and increased
severity rates.
46585— 38------ 8


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

Monthly Labor Review—March 1938

680

The following presents the condition in tabular form.
1.
2.
3.
4.

Decreased frequency and decreased severity---------------------- 17
Increased frequency and decreased severity---------------------- 7
Decreased frequency and increased severity---------------------- 4
Increased frequency and increased severity----------------------- 1

Rank of Industries
Table 4 gives the relative rank of the 30 manufacturing industries
for 1935 and 1936 based on frequency and severity rates. Industries
are rated in ascending order. First place (1) is assigned to the
industry having the lowest rate, and last place (30) is assigned to the
industry having the highest rate. Rank as shown in this table does
not necessarily indicate that an industry experienced a lower or a
higher frequency or severity rate in 1936 than it did in 1935. Rank
merely expresses the relative standing of an industry to the other
industries during the same year. An industry may experience a
decrease in its frequency or severity rate and yet appear higher in
rank than in the previous year. For definite information as to
whether an industry experienced a lower or higher frequency or
severity rate, table 2 should be consulted.
T able 4.

—Rank, According to Frequency and Severity Rates, of Identical Establishments
in 30 Manufacturing Industries, 1935 and 1936 1
Severity-rate rank

Frequency-rate rank
Industry
1935
Agricultural implements....................... ............................
Automobiles......... .................................................- .........
Automobile tires and rubber goods....... ..........................
Boots and shoes..-------- --------- --------------------------Brick, tile, and terra cotta__________ _________ _____
Carpets and rugs......................... .................................—
Chemicals----- ----------------- ------ --------------- -----------Cotton goods_________________ ______ —....................
Electrical machinery, apparatus, and supplies-----------Fertilizers...........................................................................
Flour, feed, and other grain-mill products.....................
Foundry and machine-shop products........ ...............—
Furniture--------- ----------------- ----------------- ---------G lass...................................... ................ ............. ............Hardware---------------- ------------------------------ ---------Iron and steel_______________________________ ___
Leather___________________ ________ ____________
Logging................................................................................
Lumber:
Planing m ills ....................................................... .
Sawmills.......................................................—.........
Machine tools................. ........ ............. ........ .................. .
Paper and pulp................ ........................................... ......
Pottery...............................................................................
Shipbuilding, steel and wood........................................ .
Slaughtering and meat packing------------ -----------------Stamped and enameled ware______________________
Steam fittings, apparatus, and supplies--------------------S to v es.................................................. .......................—
Woolen goods................... .................................-........... .

1936

1935

1936
25
3
12
2
26
5
7
6
1
28
20
23
15
17
19
8
18
30

17
4
9
o
28
3
6
7
1
27
22
21
13
16
14
12
15
30

21
5
4
1
24
8
25
3
7
28
26
22
20
8
6
11
14
30

14
6
8
1
24
5
18
2
4
28
26
20
16
10
9
15
11
30

27
29
13
22
4
9
10
21
14
16
24

26
29
11
23
5
10
18
24
19
20
25

27
29
13
23
16
2
18
15
17
12
19

27
29
7
23
17
2
25
18
21

11

8

8

13
22
12

i T h e low est rate is ranked first, th e second low est second, etc. 2 industries ty in g for the sam e rank were
assigned the sam e rank num ber, b ut th e next num ber w as om itted to avoid distortion of sub seq u en t rank
num bers.


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

Industrial Accidents

681

Numerous shifts in rank based on frequency occurred in 1936 as
compared with 1935. Only four industries retained the same rank.
Electrical apparatus ranked first in both years, boots and shoes
second, sawmills twenty-ninth, and logging thirtieth. Agricultural
implements changed in rank from twenty-fifth place in 1935 to
seventeenth in 1936. Other industries changing ranks downward
more than two places were automobile tires from twelfth to ninth
place, hardware from nineteenth to fourteenth, leather from eighteenth
to fifteenth, and woolen goods, eleventh to eighth place.
Shipbuilding experienced the most unfavorable shift in the scale of
frequency rank, moving from tenth place in 1935 to eighteenth in
1936. A severe change from fourteenth to nineteenth place in
frequency rank also occurred in the stamped- and enameled-ware
industry. Changes of more than two places upward in rank were
also experienced by the iron and steel industry, moving from eighth
place in 1935 to twelfth in 1936, slaughtering and meat packing,
twenty-first to twenty-fourth, steam fittings, from sixteenth to
twentieth place.
Rank based on severity rates present a similar picture, although
changes in rank were not as numerous. Nine industries retained the
same places they occupied in 1935. Boots and shoes retained first
place in both years, pottery second. At the other extreme, paper and
pulp remained twenty-third, brick twenty-fourth, flour mills twentysixth, planing mills twenty-seventh, fertilizers twenty-eighth, saw­
mills twenty-ninth, and logging thirtieth. Both agricultural imple­
ments and chemicals experienced significant shifts in severity ranking.
Each moved seven places; the former shifted from twenty-first place
in 1935 to fourteenth in 1936, and the latter from twent3T-fifth to
eighteenth place. Not far behind came machine tools, reaching
seventh place in 1936 from the thirteenth place it occupied in 1935.
Other downward changes of more than two places occurred in carpets
and rugs, from eighth place in 1935 to fifth in 1936, electrical ap­
paratus, from seventh to fourth place, furniture, twentieth to
sixteenth, and leather, from fourteenth to eleventh place.
Shipbuilding experienced a shift of 7 places in rank, based on severity
rate, from eighteenth to twenty-fifth place. Seven other industries
also changed places upward by more than two points in 1936. These
were automobile tires, from fourth place in 1935 to eighth in 1936,
hardware from sixth to ninth, iron and steel from eleventh to fifteenth,
slaughtering and meat packing from fifteenth to eighteenth, stamped
and enameled ware from seventeenth to twenty-first, stoves from
nineteenth to twenty-second, and woolen goods from eighth to twelfth
place.
On the whole then, the industries occupying the extremes either in
frequency or severity ranks, or both, retained the same positions in

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

682

Monthly Labor Review—March 1938

1936 as in 1935. Agricultural implements experienced the most
favorable shift, both in frequency and severity ranks. Shipbuilding
experienced the most unfavorable shift in both frequency and severity
ranks.
Twenty industries shifted both in frequency and severity rank. It
is interesting to note that 10 of these industries shifted not only in the
same direction, but also that the number of places each industry
changed in frequency rank did not vary more than one place from the
number of places it changed in severity rank. Thus agricultural
implements moved eight places in frequency rank and seven places in
severity rank; carpets and rugs, frequency two places, severity three.
Foundries shifted two places both in frequency and severity rank;
leather, three and three. The automobile industry changed one place
in frequency rank and one in severity rank; iron and steel, four and
four; petroleum refining, one and one. Shipbuilding moved eight
places in frequency rank and seven places in severity rank, slaughtering
and meat packing three places in each, and stamped and enameled
ware five in frequency rank and four in severity rank.
However, there are sufficient exceptions to this trend to prevent the
general conclusion that frequency and severity rankings generally
moved in the same direction and the same number of places. Out­
standing exceptions are chemicals with a shift of one place in frequency
and seven places in severity, hardware with a shift of five places in
frequency and three places in severity, but shifting in opposite direc­
tions. Automobile tires, as well as woolen goods, changed three
places in frequency rank and four places in severity rank, but likewise
shifted in opposite directions.
Disability Distribution
The data presented thus far involved injury rates computed on the
basis of man-hour exposure. The frequency rate is the average num­
ber of injuries for each million man-hours worked, and the severity
rate is the average number of days lost for each thousand man-hours
worked. While both rates are essential to an understanding of the
incidence of disabling injuries and the time lost involved, they, being
measures based on exposure, fail to convey a definite idea of the serious­
ness of the injuries themselves. Neither do the rates indicate whether
in 1 year there were more fatalities or permanent disabilities in propor­
tion to the total number of injuries than in some other year. It is
important to know whether a given time loss is caused by a small
number of fatalities and permanent disabilities, or by a large number
of temporary total disabilities.


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

683

Industrial Accidents

Table 5 has been constructed for the purpose of presenting a more
complete analysis of industrial injuries than is afforded by the injury
frequency and severity rates. In this disability distribution table
the severity of the injuries is expressed in two ways: First, by pre­
senting on a common basis of 1,000 injuries the proportionate distri­
bution of the injuries among the types of disabilities, thus giving a
measure of the shift to or from injuries of a permanent nature; and,
secondly, by computing the average number of days lost per disability
which reveals the seriousness of the injuries more definitely than the
severity rate does. As the disability distribution measures the shift
from one type of disability to another, so the average days lost per
injury measures the shift within each type of disability.
T able 5.— Disability Distribution Per 1,000 Injuries and Average Days Lost Per Dis­

ability for Identical Establishments in 30 Manufacturing Industries, 1935 and 1936
Death and
permanent
total dis­
ability 1
Industry

Permanent partial
disability

Number
per 1,000
injuries

Number
per 1,000
injuries

Number
per 1,000
injuries

1935

1936

1935

1936

1935

67

923

902

919

926

19

18

95 802 600
94
734 705
44 821 899
47 825 927
852
27 681
882
123 891
92 1,194 1,115
47 1,037 1,080

906
896
954
942
964
878
884
941

900
900
949
951
966
877
891
951

18
23
24
16
17
15
20
16

16
21
18
16
15
13
21
18

742
108 777
32 1,325 1,646

865
933

884
951

19
14

16
16

62
76
121
36
105
71
62
52

57 1,516 1,219
64 906 858
114 815
850
27 851 1,016
111
488
575
801
60 843
61 1,009 1,005
32 1,487 1,408

926
919
872
958
895
919
934
929

933
930
883
965
887
929
936
953

20
18
15
17
13
24
15
26

17
17
14
17
14
21
15
23

10
7
6
5
20
6
15
4
4

70
68
61
57
108
29
87
67
113

80
57
56
61
115
19
65
58
124

1,058 1,077
1,384 1,297
722 791
1,115 1,216
1,237
856
390 960
915
879
884
965
841
713

924
925
929
936
879
965
897
927
880

910
936
938
934
865
975
920
938
872

17
21
17
19
23
17
19
15
16

15
20
15
18
25
15
16
14
14

9
5
2

62
62
66

565
38 830
58 940 830
86 1,168 1,174

932
934
931

953
937
912

17
19
16

14
17
18

1936

All industries_____________________

7

7

74

Agricultural implements____________
Automobiles-------- ------- ----- --------Automobile tires and rubber goods___
Boots and sh o es_________ --- ------Brick, tile, and terra c o t t a __________
Carpets and rugs _ _______________
Chemicals._______________________
Cotton goods______________________
Electrical machinery, apparatus, and
supplies___ . ______ __________
Fertilizers___ _ . ------- --------------Flour, feed, and other grain-mill prod­
ucts____________________________
Foundry and machine-shop products—
F u rn itu r e ..-------- -------------------- . . .

2
6
5
2
10
3
22
4

5
6
7
2
7
0
17
2

92
98
41
56
26
119
94
55

8
15

8
17

127
52

12
5
7
6
0
10
4
19

10
6
3
8
2
11
3
15

6
7
10
7
13
6
16
6
7
6
4
3

.1 Each death or permanent total disability is charged with a time loss of 6,000 days.


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

Average
days lost
per dis­
ability

1936

1935

1935

Hardware-------- --------- . . . . . . . . . .
Iron and ste el... . .. . . . ---- ---- .
Leather___. . . .
. . .
. . . ..
Logging---------------------------------------Lumber:
Planing mills---------------------------Sawmills--------. ------------- .
Machine tools_____ .. . ---------------Paper and pulp________ - ------------Petroleum refining______________ ..
Pottery_____________ ______ ___
Shipbuilding, steel and wood------------Slaughtering and meat packing------ -Stamped and enameled ware________
Steam fittings, apparatus, and sup­
plies_____ _____ ________________
Stoves___________________________
Woolen goods_____________________

Average
days lost
per dis­
ability

Temporary total
disability

1936

684

Monthly Labor Review—March 1938

The number of deaths and permanent total disabilities 5 per 1,000
injuries for all reporting establishments remained at 7 in both 1935
and 1936. During the same period, however, the permanent partial
disabilities decreased 7 in the number per 1,000 injuries, from 74 to
67, and decreased 21 in the average days lost per disability, from 923
to 902. On the average, then, industrial injuries were of a less severe
nature in 1936 as compared with 1935, showing a combined decrease
of all permanent disabilities from 81 per 1,000 injuries to 74. This
shift toward injuries of a less serious nature is further reflected in the
average days lost of the temporary total disabilities, which declined
from 19 days per injury to 18.
Although, for the industry as a whole, the number of deaths and
permanent total disabilities remained unchanged, considerable in­
creases and decreases were experienced in the individual industries.
For the chemical industry the number per 1,000 injuries dropped
from 22 in 1935 to 17 in 1936, brick from 10 to 7, furniture from 7 to
3, logging from 19 to 15, machine tools from 10 to 6, and stamped
and enameled ware from 7 to 4. The shipbuilding industry reduced
its high ratio of deaths and permanent total disabilities by 1, from
16 to 15. The sharpest increases in this type of disability occurred in
four of the industries: Agricultural implements advanced from 2 in
1935 to 5 in 1936, planing mills from 6 to 10, petroleum from 13 to
20, and steam fittings from 6 to 9.
The distribution of the permanent partial disabilities showed a
marked decrease in the number of this type of disability per 1,000
injuries. Twenty of the thirty manufacturing industries experienced
decreases in the number per 1,000 injuries, and 15 had decreases in
the average days lost per disability. Three of the most significant
decreases in the number per 1,000 injuries were accompanied by cor­
responding decreases in the average days lost per injury. The num­
ber of permanent partial disabilities per 1,000 injuries for electrical
apparatus dropped from 127 to 108, for logging from 52 to 32, and
for steam fittings from 62 to 38. The outstanding decrease in the
average days lost for these 3 industries occurred in steam fittings,
which declined from 830 days in 1935 to 565 in 1936. Other noticea­
ble decreases in the proportion of permanent partial injuries were
experienced by fertilizer (52 to 32), glass (36 to 27), pottery (29 to 19),
and shipbuilding (87 to 65). These decreases in the number of this
type of injury, however, were partially offset by increases in the
average time lost. Fertilizer rose from 1,325 days per injury to 1,646
days, glass from 851 to 1,016, pottery from 390 to 960, and ship­
building from 879 to 915.
5Combined because the number of permanent total disabilities is very small, and because both types of
injuries are charged with a time loss of 6,000 days per case.


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

Industrial Accidents

685

The outstanding increase in the number per 1,000 injuries for the
permanent partial disabilities occurred in the woolen-goods industry,
which rose from 66 to 86 with the average days lost remaining prac­
tically the same. Planing mills also experienced a sharp increase in
the number of permanent injuries, from 70 to 80. On the other hand,
agricultural implements which had only a slight increase in the
number of permanent injuries (92 to 95) experienced a sharp drop in the
average days lost, from 802 to 600. Four of the six industries with
the highest ratios in the permanent partial disabilities experienced
further increases in the number per 1,000 injuries. Carpets and rugs
increased 4, from 119 to 123; hardware 6, from 105 to 111; petroleum
refining 7, from 108 to 115; and stamped and enameled ware 11, from
113 to 124. Carpets and rugs, petroleum refining, and stamped and
enameled ware, however, had decreases in the average time lost per
injury. The sharpest drop occurred in petroleum refining, decreasing
from 1,237 days per injury to 856 days.
Decreases in the average days lost per temporary total disability
were experienced by 21 of the 30 individual industries. The most
noteworthy decrease occurred in automobile tires which fell from 24
to 18. Sizable decreases were also experienced in electrical apparatus
(19 to 16), flour mills (20 to 17), iron and steel (24 to 21), logging
(26 to 23), shipbuilding (19 to 16), and steam fittings (17 to 14).
The average time lost per disability remained unchanged in the boots
and shoes, glass, and leather industries, with 16, 17, and 15 days,
respectively.
In measuring the severity of the injuries to the workers the logging
industry experienced, on the whole, the largest decreases in 1936 than
any other industry. Per 1,000 injuries, the number of deaths and
permanent total disabilities decreased 4, from 19 to 15, and the
permanent partial disabilities fell 20, from 52 to 32. The average
time lost for the permanent partial disabilities decreased slightly from
1,487 days per injury to 1,408 and the temporary total decreased
considerably, from 26 to 23.


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

Industrial Relations

COLLECTIYE BARGAINING ON THE NEW YORK
CITY TRANSIT LINES, 19371
DURING 1937 collective bargaining was generally established for the
first time in the New York City passenger transportation industry.
With the signing of 11 contracts before the close of the year, the
Transport Workers’ Union has been recognized as the sole bargaining
agent for the workers in the major surface transit lines, for most of the
taxicab drivers, and for elevated and underground transportation with
the exception of the city-owned Independent Subway System.
The improvements won in working conditions through collective
bargaining have paralleled the gains made in union recognition. The
total annual wage increase is estimated by union officials to be over
$9,000,000. Average weekly wages of bus operators increased $3
after the signing of the contracts. Taxi agreements liberalized the
commissions sufficiently to raise earnings from 10 to 25 percent, and
guaranteed minimum weekly wages were also established. A flat
10-percent increase in wages was provided in the subway contracts.
Under the graduated system of wages characteristic of the transit
industry, whereby the number of years of service influences the wage,
the union has succeeded in scaling down the time interval before
maximum wages are reached.
Hours have been shortened for 50 percent of all the transportation
workers under contract. Provisions for consecutive hours, as well as
maximum hours, represent an important benefit to bus and trolley
operators. The practice of 12-, 14-, and 16-hour working days had
prevailed; that is, during these hours the men were on call although
they were paid for only the 8 or 9 hours actually spent operating the
vehicles. As against the previous standard of 52 weeks’ work a year
and the frequent 7-day week, vacations with pay and a 6-day week
have been prevalently established.
The abolition of the long-established regulation that no button nor
emblem of any type was to be displayed on the uniforms of transit
workers is a significant feature of union recognition.
i
By Frances Wheeler, under the direction of Florence Peterson, Chief, Industrial Relations Division,
Bureau of Labor Statistics.

686


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

Industrial Relations

687

History of the Organization
The present collective agreements represent the culmination of 50
years of attempts by organized labor to secure union recognition and
collective bargaining on the transit lines of New York City. After
several strikes in 1885—
86, the Knights of Labor won virtual recogni­
tion and materially improved carmen’s conditions. After the decline
of the Knights of Labor, organization activities were taken over by
the Amalgamated Association of Street Railway Employees of America,
affiliated with the American Federation of Labor. Unionization pro­
gressed slowly. In 1904 an agreement was signed with several com­
panies, but the provisions were unsatisfactory to the local unions,
who thereupon called a strike which was repudiated by the national
officers. The strike was lost, several local charters were revoked, and
union organization received a serious setback.
For 12 years the unions were relatively inactive. In 1916 the
Interborough Rapid Transit Co. inaugurated the policy of requiring
employees to sign individual contracts not to join the union. After
challenging this action of the company and failing to secure the com­
pany’s consent to arbitration, the members of the Amalgamated
Association went on strike. The companies spent over 3% million
dollars for strikebreaking services.2 The strike was lost after a great
deal of disorder and many arrests of strikers. The company con­
tinued its insistence on individual bargaining and soon after the
strike established the Brotherhood of Interborough Rapid Transit
Employees, with a constitution approved by the directors of the
company.
The constitution of the brotherhood as amended in 1920 was made
a standard individual contract, which required that every employee
be a member of the brotherhood and renounce any connection with
the Amalgamated Association or any other association of streetrailway or other employees. The men were subdivided, some by
crafts, some by departments, and some geographically, for repre­
sentation on the general committee. This committee, the officers
of which drew salaries from the company, was given absolute rulemaking and assessing power, the right to terminate any individual
contract (which automatically caused the discharge of the employee
involved), and also the power to disfranchise groups or locals, remove
representatives from its council, and veto bylaws passed by a local.
Only by a two-thirds vote of the general committee could the con­
stitution be amended, and then only with the consent of the company.
A parallel development took place on the other large subway line.
In answer to an investigation by the War Labor Board in 1918, the
Brooklyn Rapid Transit Co. (since reorganized as the Brooklyn2
1936.

National Labor Relations Board. Report to the La Follette Civil Liberties Investigation Hearings,
Vol. 1, p. 80.


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

688

Monthly Labor Review—March 1938

Manhattan Transit Corporation) maintained that it was recognizing
the right of the employees to organize and bargain collectively by
allowing membership only in the Brooklyn Rapid Transit Employees’
Benefit Association, which had been in existence since 1900. Al­
though the Board disapproved,3 the benefit association was continued.
Following a strike in 1920, in which the Amalgamated Association of
Street Railway Employees was defeated, the Brooklyn Rapid Transit
Employees’ Benefit Association was supplemented by an antiunion
individual agreement, which read, “I am not a member of the Amalga­
mated Association and I will not become a member while in the employ
of the Brooklyn Rapid Transit Co.” Thus the only active union was
excluded.
In 1927, after an independent organization among the motormen
of the Interborough Rapid Transit Co. attempted a strike, the Amal­
gamated Association resumed active organizing work. The com­
pany sought an injunction restraining the union organizers on the
ground that they were inducing breach of contract among its em­
ployees. It was granted pending litigation, but on appeal4 to the
Circuit Court of Appeals of New York the court held that the con­
stitution of the brotherhood could not be considered a binding con­
tract of employment, and that since the constitution was based on
mutual consent, it could be terminated at the will of either party at
a moment’s notice. The Interborough Rapid Transit Co. and the
general committee of the brotherhood thereupon agreed to a new
individual contract specifying a fixed period of employment. The
company agreed to employ only members of the brotherhood, and the
latter agreed to a proviso that its members should work for 2 years
“unless in the meantime, by mutual consent, my employment is
sooner terminated.”
Certain of the Amalgamated’s organizers continued their activity,
and an injunction was again sought on the grounds of attempts to
induce breach of contract. In this case 5 the court found the contract
not reciprocal nor equitable in its guaranties, in that “unlimited and
practically unhampered power to discharge is given the company” in
return for the promises of the employees. These two decisions were
3
In this case ( B ro th erh o o d o f L ocom o tiv e E n g in e e rs vs. N ew Y o r k C on solid ated R . R . N o . 288 ) the Board
rejected the argument and said: “The form of benefit association seems to have been changed from time to
time, but one feature which has persisted is that the president of the company has appointed the president
of the association and the president of the association has either himself conducted the elections or appointed
persons to do so. * * * Where a company-formed association is offered as a substitute for an associa­
tion of the voluntary formation of the men, the slightest suspicion of an opportunity for unfairness on the
part of the employer is itself reason for questioning the usefulness of such an organization. * * * Follow­
ing the section of proclaimed principles of the Board above set forth, it must be ruled that the employees of
the company who desire to become members of the Brotherhood of Locomotive Engineers, or any other
legitimate labor organization, shall be permitted to do so without denial, abridgement, or interference upon
the part of the company.” The 29 employees discharged for union affiliation were ordered reinstated, but
the benefit association was not affected by the Board’s order.
« In terb orou gh R a p id T r a n s it Co. vs. L a v in et at, 247 N. Y. 65,159 N. E. 863 (1928).
8In terb orou g h R a p i d T r a n s it C o. vs. W m . G reen et at, 227 N. Y. S. 258 (1928).


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

Industrial Relations

689

hailed by labor as substantial indictment of the use of “yellow-dog”
contracts.
Nevertheless, conditions remained the same until December 1934,
when a new agreement was effected by the N. R. A. compliance
director. This eliminated the clause prohibiting the Interborough
Rapid Transit Co. from hiring anyone not a member of the brother­
hood. There was no change with respect to the Brooklyn Manhattan
Transit Co., since it maintained that it was not subject to the juris­
diction of the transit code, that the company union was a bona fide
instrument for the expression of the employees’ will, and that the
company was morally bound to continue to recognize its obligation
to the Brooklyn Manhattan Transit Benefit Association. Action
was withheld by the N. R. A. in a case of reinstating several dis­
charged employees, and the company union was not affected.
Meanwhile, a small independent organization known as the Trans­
port Workers Union was rapidly growing in membership and influence
among the employees of the Interborough Rapid Transit Co. It
made its first bid for recognition in March 1935, when it sent an
elected delegation with a petition signed by 2,000 members to the
regional labor board to request a referendum among the Interborough
Rapid Transit employees. No action was taken before the time of
the termination of the N. R. A. and the subsequent closing of the
N. R. A. labor boards. Two years later the company agreed to such
a referendum under the supervision of the regional office of the
N. L. R. B. When the ballot of the 14,000 employees was taken in
April 1937, the Transport Workers Union won 92 percent of the votes.
Meanwhile, in the spring of 1936, this independent union became
a local of the International Association of Machinists. In May 1937
it severed connections with the International Association of Ma­
chinists and voted affiliation with the Committee for Industrial
Organization. During this time membership in the New York City
local has mounted to over 4’3,000. Jurisdiction of the Transport
Yorkers Union extends over all passenger transportation facilities
exclusive of steam railroads and water transportation.
Adoption of the Agreements
The recognition of collective bargaining has been facilitated by the
election machinery offered by the State labor relations board. Every
election ordered by the board to determine the bargaining agent has
been won by the Transport Workers Union. In the cases of the East
Side Omnibus Corporation and the Comprehensive Omnibus Corpo­
ration the Employees’ Welfare Association won the election, but upon
failure to win any concessions from management it disbanded in favor
of the Transport Workers Union.

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

690

Monthly Labor Review—March 1938

In the Brooklyn Manhattan Transit case, mediation by a special
hoard was necessary before the agreement was consummated. A ref­
erendum for determination of the bargaining agency gave the Trans­
port Workers Union an overwhelming majority in all but two units.
The union immediately insisted on a contract, although the old con­
tracts with 21 employee groups under the representation plan did not
expire until October 1938. Negotiations for over a month brought
no agreement, and the executive council of the union was authorized
by the membership to call a strike. Mayor La Guardia secured the
consent of both sides to appoint an advisory fact-finding board, with
the understanding that neither party need abide by the board’s find­
ings. Before the three-man board had finished its investigation an
agreement was signed on October 11, 1937.
A new problem involving the rights of city employees has arisen in
the case of the city-owned Independent Subway System. A repre­
sentation plan is in effect for these subway employees, based on 10
occupational classifications. In a referendum held in March 1937 the
Transport Workers Union and the Amalgamated Association of
Street and Electric Bailway Employees claimed 51 of the 79 employee
representatives. On October 21, 1937, the Transport Workers claimed
a majority among the 5,400 employees and petitioned the State labor
relations board for certification as bargaining agent and also for an
investigation of the employer-employee relations. The Board of
Transportation refused to attend any hearings or informal confer­
ences, on the ground that it was a publicly owned agency and as such
specifically exempt from the provisions of the State labor relations
law. On January 23, 1938, the State board ruled that its jurisdiction
did not extend to the Independent City Subway employees, since this
operating body was a subdivision of the municipality. The Transport
Workers Union is now seeking to have the labor relations law amended
to include city functions of a proprietary nature.
Strike action has been negligible in the conclusion of all the agree­
ments on transport lines. Unrest in the taxicab industry, however,
prevailed after the original contracts were signed in the summer of
1937. Attempts to break the closed-shop clauses resulted in general
strife. The Parmelee Co. terminated its contract in early December
because it claimed that the union had failed to enforce the terms of its
agreements on other competitors. The taxicab agreements stipulate
that the union must not grant more favorable terms to competing
lines than were accorded any one company. A general strike was
averted at this time by the signing of new agreements with four of the
largest operating companies. A strike was called against the fifth
company, negotiations resulting in the signing of an agreement a few
days later.

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

industrial Relations

691

Provisions oj the Agreements
The contracts of the union cover three general transportation
groups: Bus companies, subway and surface electric lines, and the
taxi-operating companies. All of the agreements provide for sole
bargaining rights and a closed union shop. Union hiring halls are
established for taxicab drivers in the recent agreement. Under the
subway and bus contracts all employees are required to join the
union within 30 days after they have been hired.
THE BUS CONTRACTS

The hours provisions in the bus agreements seek to stabilize the
“run” system. In the Comprehensive Omnibus Corporation and the
East Side Omnibus Corporation contracts, time and one-half is
guai anteed after 10 hours service, and men may not be compelled
to wait more than 2 hours after reporting for work if they are not
assigned to a Tun.” The Fifth Avenue Coach Co. agreement guar­
antees 5 hours’ pay for any run taking less than 5 hours, and provides
that men called in for Sunday “sunshine runs” be given 2 hours’
pay when the run is canceled because of rain.
Mechanical and maintenance men of the lowest-paid categories
benefited most by wage increases, the largest increase of 29 percent
going to the electricians’ helpers. For drivers, where a graduated
system ol wages is typical, higher hourly rates were set in the New
York City Omnibus Corporation agreement, with a top rate of 82
cents and first-year rates of 65 cents. The Fifth Avenue Coach
Co. agreed to a 73-cent hourly rate for first-year men. These agree­
ments include a week’s vacation with pay and provision for negotia­
tion this year for a second week’s vacation. The union considered
as its greatest gain a clause in the Fifth Avenue Coach Co. contract
prohibiting the company from reducing its two-man buses to oneman operation without consent of the union. Preference is also
given conductors in filling vacancies of drivers.
THE RAPID TRANSIT CONTRACTS

Among the subway and street railway workers 10 percent increases
were general, with a minimum weekly wage of $25 on the BrooklynManhattan Transit and the Interborough Rapid Transit. All bus
and trolley operators employed by the Third Avenue Railway and
the Brooklyn-Manhattan Transit are guaranteed the maximum rate
of pay after 5 years of service. A 48-hour 6-day week was set for the
motive power department of the Interborough Rapid Transit Co.,
with a like reduction promised in other departments, contingent on
the cost of such a reduction and the levying of a utility tax on the
company by the city of New York. Paid vacations of 1 week after

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

692

Monthly Labor Review—March 1038

6 months of service are guaranteed by all the companies, with pro­
vision for a 2 weeks’ vacation for those employed for 5 years or more.
An interesting development in the negotiations with the Inter­
borough Rapid Transit was the setting aside of the old pension plan.
Employees had protested for several years that the plan set up under
the old brotherhood was actuarially unsound, but the company had
refused to permit withdrawals from the system, under which em­
ployees contributed 3 percent of their wages. As a result of recent
negotiations the company returned a total of $2,000,000 to the em­
ployees, which amounted to from $150 to $200 a man. Company
contributions, with interest accumulated over the 30 years the plan
was in effect, will be transferred to a separate pension fund sufficient
to assure 16,000 employees a pension at the rate of 1 percent of their
wages for each year of service up to July 1, 1937. For subsequent
service the employees will receive benefits under the Federal Social
Security Act. The company will continue to make contributions
for 5 years for employees over 60 years of age who are ineligible for
Federal Social Security old-age payments. The employees of the
Brooklyn Manhattan Transit Co. have the privilege of adopting a
similar pension plan.
THE TAXICAB CONTHACTS

The guarantee of a minimum wage is an important innovation in
the agreement with 5 taxicab operating companies, covering about
15,000 full-time drivers. Drivers employed on single shifts receive a
minimum of $18 a week; on double shift, day line, a minimum of $15
for each full week; on double shift, night line, a minimum of $18.
The commission rate on bookings has been raised from 40 to 42%
percent of fares recorded on the taximeter. One week’s vacation is
established for which taxicab drivers are paid $25 and maintenance
men receive a week’s wage.
In an attempt to drive out “floaters”—men who work a day or two
a week—it is provided that no man shall be hired for less than a full
working week of 48 hours for day men and 54 hours for night men
within a 6-day week. This policy is expected to cut down the number
of cabs on the street and assure for drivers who earn their entire in­
come at this occupation a better opportunity for higher earnings.
Besides union control of hiring through a system of hiring halls in
Manhattan, Bronx, and Brooklyn, the “check-off” for collection of
union dues is also provided.
No employee may be suspended or discharged unless the company
and the union agree that just cause exists, or in event of disagreement,
the arbitrator finds such cause exists. An exception is made in the
case of a driver guilty of the use of intoxicants while on duty or of a
serious personal-injury accident, who may be suspended pending

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

Industrial Relations

693

investigation by the union or, in the event that the union and the
company cannot agree on the propriety of suspension, pending arbi­
tration. Low bookings as a reason for discharge shall not apply to
one union shop steward in each garage. If the arbitrator determines
that a suspension or discharge was without cause, reinstatement will
be ordered and an award of pay for time lost will be made.
>+++*+++<

LABOR ESPIONAGE: SUMMARY OF SENATE INQUIRY
FOR many years it has been known that undercover agents have been
used in many industries to spy on workers and labor unions, but prior
to the Senate inquiry beginning in 1936, information was fragmentary.
On June 6, 1936, a Subcommittee 1of the Senate Committee on Educa­
tion and Labor was appointed to investigate violations of the rights of
free speech and assembly and interference with the right of labor to
organize and bargain collectively. Preliminary hearings held under
Senate Resolution No. 266 revealed spying as a grave menace to the
rights of workers to organize and to enjoy the civil liberties granted by
the Constitution. Hearings held by the subcommittee and the
extensive documentary evidence collected by it afford an unprece­
dented revelation of labor espionage, strikebreaking, and munitioning.
The committee’s inquiry has been summarized, insofar as it relates to
labor espionage, in a recently published Senate report.2
The extremely large field assigned by the Senate to its committee
and the difficulties incident to such an investigation made necessary
the limiting of the investigation to sampling studies. These studies,
however, revealed a striking recurrence of typical patterns. The
committee hearings were public and witnesses were summoned from
every party having an interest in the proceedings. Full opportunity
was given to each witness without exception to present his case and
to refute or rebut any damaging testimony or evidence. In addition,
all of the witnesses were advised that any pertinent data they desired
to submit could be inserted in the records of the committee. Many of
the witnesses took advantage of this opportunity. The report of the
committee is based not only on the hearings but on the additional data
submitted by witnesses and on the affidavits and other evidence
collected by the staff of the subcommittee.
Detective services include protection against thefts, frauds, and
violations of safety rules. The Senate subcommittee was not directly
concerned with these types of detective work, but its investigations
i Commonly known as the Civil Liberties Committee, composed of Senators Robert M. LaFollette, Jr.,
Chairman, Elbert D. Thomas, and before his death on July 6,1936, Louis Murphy.
s U. S. Congress. Senate. Committee on Education and Labor. Industrial Espionage: Violations of
Free Speech and Rights of Labor. Washington, 1937. Senate Report No. 46, Part 3 (75th Cong., 2d sess.).
Extensive hearings had previously been published, and additional hearings and reports are expected, cov­
ering phases of the inquiry other than labor espionage.


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

694

Monthly Labor Review—March 1938

revealed that they have been relatively insignificant. Industrial
espionage was described by the committee as the most efficient method
to prevent unions from forming, to weaken them when they secure a
foothold, and to wreck them when they try their strength. On
examination, various other alleged purposes of espionage were repu­
diated by the officials who had in the first place advanced them as
explanations of the prevalence of spying. Among the principal
purposes at first ad vanced by agency officials, but shown to be without
foundation by the committee, were the protection of industry from
Communists and the promotion of “human engineering” by increasing
the efficiency of workers or by improving relations between workers
and employers.
The obstacles encountered by the committee in obtaining informa­
tion are themselves indicative of the character and purposes of
industrial espionage. Elaborate devices are used by the agencies and
their clients to conceal the names and activities and indeed the
existence of spies. Instances were revealed of specific violations of
State and Federal laws. The committee obtained clear evidence of
premeditated and deliberate effort to destroy the documentary evidence
to which it had a legal right. There was a systematic and thorough
destruction of documents subpenaed by the committee, and fragments
of the subpenaed papers were recovered from waste paper in process
of destruction collected from the offices of agencies in several cities.
These fragments, when reconstructed, proved to be journal sheets,
card files of operatives, spy reports, letters from salesmen, and inter­
office correspondence, all of which were documents specifically called
for by the subpena. One large agency with many branch offices
a ttempted to destroy the records of industrial espionage remaining in
their offices on the date the subpena was served. Another agency sent
a collection of spy reports out of the back door of its main office while
a staff member of the committee was entering the front door with a
subpena. Stripping of files, the establishment of secret offices, re­
peated transfer of records from office to office, the use of ink eradicators
on ledgers, evasive and deceptive answers to committee questions, and
refusal to reply to questions were among the methods used to obstruct
the course of the investigation.
Extent of Practice
Because of the extreme opposition and the concealed nature of the
activities under investigation, the information obtained by the sub­
committee regarding the extent of espionage is far from complete.
Fragmentary information made possible the listing of 3,871 industrial
spies for the years 1933 to 1936, but this number is confined to those
revealed by available records of only a part of the large number of
detective agencies. Approximately 2,500 business firms are known

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

Industrial Relations

695

to have obtained spy services from agencies in the years 1933 to
1936, and many companies maintain their own spies or obtain spy
service from associations of employers.
Some of the firms that furnish spy service claim to be engineering
firms, publishers, auditors, or attorneys. Many of the detective
agencies have branch offices in the principal cities of the country.
In some cases, they operate through a network of subsidiaries with
variable names as an aid in concealing the nature and extent of their
activities. The Senate subcommittee made separate studies of a few
of the larger agencies and in addition sent out over 800 questionnaires
to agencies believed to be engaged in industrial work. Of these, 155
either reported themselves as active in supplying this type of service
or were found by the subcommittee to be so engaged. Replies from
500 agencies failed to acknowledge their connection with espionage.
No replies were received from 250 agencies. The replies of the
agencies which responded to the request of the committee for infor­
mation were described by the committee as being “so much at variance
with evidence before the committee that they were for the most part
untrustworthy, if not completely fraudulent.” From independent
evidence, the committee established the fact that at least 50 of the
500 agencies which claimed to be inactive were actually carrying on
labor-spy services. The committee was without time or means to
check the veracity of most of the agencies which claimed to be inactive.
The commercialization of industrial espionage was shown by the
committee to have serious consequences in aggravating industrial
conflicts and in stirring up trouble in order to promote the business
of spying. The evidence indicates clearly that the detective agencies
frequently send spies into plants without the consent or knowledge of
the employer for the purpose of creating disturbances and bringing
pressure to bear upon employers for the hiring of spies. The reports
of spies who operate in plants with the knowledge of the employer
are frequently edited in the offices of the agency in such way as to
give erroneous or exaggerated impressions of labor conditions, and
the spies are frequently encouraged to exaggerate or falsify their
reports for the purpose of inducing employers to continue or to expand
the activities of employees of the agencies.
These methods are likely to be particularly vicious and destructive
of peaceful industrial relations when the detective agencies also carry
on strikebreaking and munitioning activities or are associated closely
with other firms that carry on these related activities.3
The close connection between industrial espionage and opposition
to unionism is revealed by the practice of placing spies in unions.
An operative of one of the larger agencies stated during the Senate
* Separate reports are announced on Industrial Munitioning, and Strikebreaking and Coercion.
46585— 38 ----- 9


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

696

Monthly Labor Review—March 1938

hearings that in his experience of 20 years, he had found that there
were “stools” in every union organization. The records of another
agency revealed membership in unions by 304 of its detectives, and
of this number 100 held offices in unions. These offices were as
follows:
National vice president_________
Local president________________
Local vice president____________
Local treasurer_________________
Local secretary_________________
Recording secretary____________
Trustee_______________________
Business agent_________________

1
14
8
2
20
14
14
3

Organizer_____________________
Delegate to Central Labor Union __
Chairman, shop committee______
Committeeman________________
Financial secretary_____________
Member, executive board____ .__
Division chairman______________
Local chairman________________

3
3
1
6
4
4
1
2

There are several types of operatives. These include the ordinary
detective employed specifically for the purpose of carrying on spying
and related activities. Such regular or “professional” operatives may
engage in shadowing or sleuthing or general investigation without
requiring the use of a disguise. These are called “backroom boys.”
There are others who operate under various disguises, and the fiction
used to conceal an operative’s connection with a detective agency is
called a “cover” or “pretext.” An operative may work inside a plant,
in direct contact with employees, or he may carry on his activities in
the general neighborhood of a plant, particularly among the wives of
workers. A frequently used name for an outside operative is “mis­
sionary.” In addition to the regularly employed or professional oper­
atives, there are large numbers of “hooked” or “roped” operatives. A
“hooked” man is an employee engaged as an informer without knowl­
edge of the fact that he is reporting to a detective agency and through
the agency to the employer. Similar in meaning is the term “roping”,
used particularly in connection with securing information by striking
up acquaintance or friendship with union men. “Hooking” and
“roping” are usually accomplished by approaching the person from
whom or through whom information is to be obtained under a “pre­
text” or “cover”, for example, under the claim that the “hooker” or
“roper” is a salesman, insurance agent, or representative of some
interest other than the employer or detective agency. The “mission­
ary” also uses a “cover.”
The character, motives, and careers of industrial spies were revealed
in the Senate hearings and in the documentary materials obtained by
the Senate subcommittee in such manner as to show that commercial­
ized spying is a major menace to organized labor and to any orderly,
peaceful, or essentially liberal process of maintaining industrial rela­
tions. The hearings and the committee report on labor espionage
reveal an alarming frequency of criminal records among operatives of
detective agencies, together with the use of illegal and violent methods
and the practice of blaming their lawlessness on its victims.

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

industrial Relations

697

Harmful Effects
The effects of industrial espionage on workers were revealed in
numerous cases by the Senate investigation. One of numerous cases
of the disruption of labor unions by spies acting as members and officials
of unions was described by a witness during the hearings:
When I first went into Flint I could not get more than 25 or 30 people together,
and I was very much interested in the reason. So I made personal calls all
through the city to find out why they would not come. They were afraid.
They knew there was spies in the local union because they had seen the move­
ment go from 26,000 to 122. They knew they were being watched. Therefore
it was necessary for me to organize little home meetings in members’ basements
after work, sometimes with the lights out; they were so skeptical; we would sit
in the dark and talk to these people. One week end we had 19 home meetings,
all day Saturday and Sunday. After we were strong enough we tied the meet­
ings together and came out in the open, but in the first meetings it was necessary
to work along those lines because of the spy system built up so effectively it had
broken the labor movement in Flint.

Among the other methods used by detective agencies to interfere
with the right of association and related civil liberties of workers
has been the formation of “company unions” or “employee associa­
tions.” Detective agencies, in their solicitations of business, set
forth to employers their actual achievements in organizing such groups,
which were described by the agencies as instrumentalities for dis­
rupting or checking the growth of unions not subject to control by
the employer.
The harmful effects of labor espionage on employers is revealed
by the practice of commercialized agencies of sending spies into
plants without the knowledge of employers, for the purpose of stirring
up trouble and making exaggerated or false reports and thus inducing
employers to hire spies. There are instances of one agency spying
on another agency, of one company spying on another company, and
even of operatives of an agency spying on each other. Spying feeds
on itself; and different branches of the same company have felt itnecessary to build up separate “protective” systems. In the words
of a professional spy subpenaed before the subcommittee, “In this
business, nobody trusts each other.” The Senate committee reported
that “industry cannot survive this endless dependence upon unreliable
knowledge that begets fear of all things and of all men.”
The interests of the public as well as of employers and employees
are seriously menaced by industrial espionage. The committee’s
investigation revealed the use of informers to shadow public officials
during the course of nationally important conciliation proceedings.
In the view of the committee, its hearings indicated that the denial
to workers of the right to organize free from employer restraint and
interference was the “most important problem of civil liberties before
the Nation, because denying workers the right to organize almost

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

698

Monthly Labor Review—March 1938

invariably meant denying them the fundamental civil rights which
are the basis of our democratic system. * * * In fact, the com­
mittee’s studies strongly suggest that the right to organize is indeed
fundamental, if only because the practices invoked by employers to
nullify this right—spying, strikebreaking, and munitioning—are so
subversive of our most vital law and democratic processes.”
SETTLEMENT OF RAILWAY DISPUTES IN 1936-37 1
THE National Mediation Board and the National Railroad Adjust­
ment Board were established by amendments in 1934 to the Railway
Labor Act of 1926. The purpose of the Act is to insure that service
rendered by the railways and air lines of the country be not menaced
nor disturbed by labor difficulties. Basic in peaceful labor conditions
are agreements entered into between employers and representatives
who are freely chosen by the employees. To assure free choice of
representatives, the National Mediation Board is empowered to
investigate disputes among employees over representation and to
certify who may serve as representatives. In its capacity of mediator
the Board facilitates the establishment of labor standards and the
incorporation of such standards in written agreements.
The third year’s work of the Board reveals increasing stabilization
of labor relations on the railways through the settlement of laborrepresentation disputes and the negotiation of labor agreements
establishing rates of pay, rules, and working conditions. While the
number of representation disputes arising each year since 1934 has
tended to remain substantially constant, the number of employees
and the number of crafts or classes of employees involved therein
have decreased. The indications are that when such disputes are
once settled on their merits under the provisions of the act they tend
to remain settled, particularly so if agreements with properly deter­
mined representatives are promptly negotiated.
The progressive stabilization of labor representation enabled the
Board, during its third year, to devote much more of its time to media­
tion proceedings. Almost twice as many mediation cases were
settled as compared with the previous 2 years. The total number of
cases received and disposed of by the Board during 1936-37 is shown
in the following table.
i United States National Mediation Board. Third Annual Report including Report ot the National
Railroad Adjustment Board, for the Fiscal Year Ended June 30,1937. Washington, 1937.


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

Industrial Relations
T able

699

1.— Cases Received and Disposed of, Year Ending June 30, 1937
Mediation

Represen­
tation

Open cases:
On hand June 30, 1936.... ................ .............
Received July 1, 1936-June 30, 1937_______ _____

138
115

47
107

185
222

Total...................... .....................
Cases disposed of____________ , _______

253
158

154

101

407
259

95

53

148

Item

On hand June 30, 1937....................................

Total

There were 168 crafts, including 57,923 workers, involved in the 101
representation disputes disposed of. In table 2 these cases are classi­
fied by parties to the disputes.
T able 2.— Types of Labor Organizations Contending to Represent Employees and

Number of Employees Involved
Parties to disputes

National organizations versus system associations
National organizations versus unorganized employees
Local unions versus system associations___
Local unions versus unorganized employees.
Total national or local unions versus system associations and unor­
ganized employees______________
National organizations versus national organizations. ..
National organizations versus local unions.......................
Total interunion disputes________
Grand total..................

Cases

Crafts or Employ­
ees in­
classes
volved

26
40
2
2

52
78
2
2

44, 581
6,034
1 117
334

70

134

52, 066

27
4

30
4

4,928
929

31

34

5, 857

101

168

57,923

In 18 of the 70 disputes of national or local unions versus system
associations 2 and unorganized employees, representatives were
recognized without certification, withdrawn as a result of investiga­
tion, withdrawn prior to investigation, or dismissed. Elections were
held or authorizations made by the Board in 52 cases involving 94
crafts. National labor organizations won 76 certifications, system
associations 12, and local unions 4. Elections in 2 crafts resulted in
no majority and hence no certification. As demonstrated by per­
centages, although less than two-thirds of the employees preferred
national labor organizations, the representation of more than fourfifths of the crafts was won by them.
2 Unaffiliated with any national or international union.


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

Monthly Labor Review—March 1938

700

T able 3.— Type of Organization Chosen to Represent Employees in Disputes Between

Unions and System Associations or Unorganized Employees
Certification issued to—

Cases

Method of choice

Crafts
or
classes

National labor
organizations

System associa­
tions

Local unions

Crafts
Crafts
Crafts
Percent
or
or
Percent
or
Percent
classes
classes
classes

Proved authorizations----------------- -

32
20

1 55
39

39
37

70.91
94. 87

12
0

21.82
0. 00

2
2

3.64
5. 13

52

194

76

80. 85

12

12. 77

4

4. 26

Employees voting for or otherwise choosing—
National labor
organizations

Method of choice

Number

Proved authorizations. .......

_-

Percent

System associations
Number

Local unions

Percent

Number

Percent

12, 031
1.279

62. 53
87. 96

6,441
12

33. 48
.83

767
163

3.99
11.21

13.310

64. 32

6,453

31.19

930

4.49

i Elections in 2 crafts or classes resulted in no majority for any organization and no certifications were
made for these. The votes of the employees in these 2 crafts or classes are included in the number of em­
ployees voting.

Elections were held in 23 cases, involving 24 crafts and 2,960
workers, in which the dispute was among national labor organizations
or between national labor organizations and local unions. Five other
interunion disputes were dismissed by the Board, and 3 were with­
drawn by the parties. The total of 4,828 employees involved in the
31 interunion contests in the year reviewed is less than half the total
employees involved in such disputes during the preceding year.
Agreements.—Negotiating an agreement is a most important task
confronting a labor organization after it has established its right to
represent a given class or craft of employees. Table 4 indicates the
number of agreements filed with the Board up to June 30, 1937,
according to the classes of carriers and types of labor organizations.
National labor organizations gained 391 agreements during the year,
while system associations lost 54, and local unions lost 1. National
organizations on July 1, 1937, had nearly 82 percent of the total
agreements.


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

701

Industrial Relations

T able 4.— Agreements on File with National Mediation Board July 1, 1935, 1936, and

1937, by Classes of Carriers and Types of Labor Organizations
Number of agreements
National labor or­
ganizations

Total

Class of carrier

System associa­
tions

Local unions

1937

1935

1936

1937

1935

1936

Class I (147 carriers)____ 2, 335 2,448 2, 638 1,652 1,864 2,184
Class II (214 carriers)........ 329
451
471
265
370 389
Class III (280 carriers)___
18
98
98
83
6
83
Switching and terminal
464
501
294 384
414
companies (213 carriers). 334
Electric___ ______ _____
0
19
47
0
15
36
Express and Pullman
companies (3 carriers)...
5
5
6
5
5
6

602
64
12

487
81
14

418
81
14

81
0
0

97
0
1

96
1
1

40
0

65
4

74
10

0
0

15
0

13
1

0

0

0

0

0

0

Total____________ 3,012 3,485 3, 761 2,222 2, 721 3,112

718

651

597

81

113

112

1935

1936

1937

1935

1936

1937

Emergencies and Strikes .—If the Board is unable to obtain settle­
ment of a dispute which threatens to interrupt interstate commerce,
the Board notifies the President, who may in his discretion create a
special board to investigate and report to him within 30 days. The
act specifies that during these 30 days there shall be no change,
except by agreement, made by either party to the dispute, in the
conditions out of which the dispute arose. During the year ending
June 30, 1937, the President appointed three such emergency boards.
In all three cases the dispute was settled without interruption of
transportation service. One case involved nonpayment by the carrier
of penalties and lost wages required to be paid by decisions of the
National Railroad Adjustment Board; the second dispute was largely
the result of differences among the labor organizations; and the third
was primarily a jurisdictional dispute.
Two railroad strikes and two minor stoppages took place during
the course of the year. One of the strikes and one of the minor
stoppages were due to the inability of the Board to send, soon enough,
a mediator to Alaska where the disputes occurred. The most serious
strike occurred among the train and engine service employees on the
Louisiana & Arkansas Railway system. It grew out of the failure of
management to give sympathetic consideration to the recommenda­
tions of the emergency boards set up by the President in prior crises ;
to apply awards of the National Railroad Adjustment Board; and to
confer jointly with the didy accredited employee representatives.
The strike, which continued for 9 weeks, was settled with the assistance
of the Governor of Louisiana.

The National Railroad Adjustment Board
The National Railroad Adjustment Board is the tribunal to which
railroads and their employees can refer for final adjudication of dis
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

702

Monthly Labor Review—March 1938

putes growing out of specific claims or grievances, or out of the inter­
pretation and application of the terms of established labor agreements.
This Board does not participate in the process of establishing labor
standards on the railroads, but confines its activities strictly to the
adjustment of differences that may arise from time to time as to how
such labor standards are or should be applied in accordance with
provisions of existing agreements. During the year ending June 30,
1937, the Adjustment Board disposed of 1,443 cases.
A ir Transport Industry
The commercial air lines and their employees were made subject to
the provisions of the Railway Labor Act in 1936. During that year,
four collective agreements were negotiated and filed with the Board.
They cover air-line mechanics and radio operators on two air lines.
Despite their relatively extensile organization, air-line pilots have not
yet entered into agreements with the air carriers further defining
their standards of employment. No disputes over representation
arose during the year among air-line employees.

RIGHT OF LABOR RELATIONS BOARD TO CONDUCT
HEARINGS
THE United States Supreme Court, on January 31, 1938, in two
unanimous decisions held that a Federal district court could not
enjoin the National Labor Relations Board from holding hearings on
charges of unfair labor practices brought against an employer. The
cases 1 related to controversies at the plants of the Bethlehem Ship­
building Corporation, Ltd., Quincy, Mass., and the Newport News
(Va.) Shipbuilding and Dry Dock Co. Mr. Justice Brandeis delivered
the opinion of the court in both cases.
The main question for determination in these cases was whether a
Federal district court has jurisdiction to prevent the National Labor
Relations Board from holding a hearing, upon a complaint filed
against an employer alleged to be engaged in unfair labor practices
prohibited by the National Labor Relations Act. The Circuit Court
of Appeals for the First Circuit held that the District Court did have
jurisdiction. Mr. Justice Brandeis, in the exordium of his opinion,
outlined the purposes of the Labor Relations Act and presented the
procedure that is followed whenever a complaint is filed.
In the Bethlehem case it was alleged by the Industrial Union of
Marine and Shipbuilding Workers of America, Local No. 5, that the
1 M y e r s v. B eth le h e m S h ip b u ild in g C o r p ., L t d .; M y e r s v. M a c K e n z ie
S h ip b u ild in g a n d D ry D ock Co. v. S ch a u fller (58 Sup. Ct. 466).


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

(58 Sup. Ct. 459).

N e w p o r t N ew s

Industrial Relations

703

corporation was engaging in unfair labor practices at its plant in
Quincy, Mass. The Labor Relations Board filed a complaint alleging,
among other things, that the company had dominated and interfered
with a labor organization within its plant known as “Plan of Repre­
sentation of Employees.” Specifically the complaint alleged that:
The respondent in the course and conduct of its business causes and has con­
tinuously caused large quantities of the raw materials used in the production of
its boats, ships, and marine equipment to be purchased and transported in inter­
state commerce from and through States of the United States other than the
State of Massachusetts to the Fore River Plant in the State of Massachusetts
and causes and has continuously caused the boats, ships, and marine equipment
produced by it to be sold and transported in interstate commerce from the Fore
River Plant in the State of Massachusetts to, into, and through States of the
United States other than the State of Massachusetts, all of the aforesaid consti­
tuting a continuous flow of trade, traffic and commerce among the several States.

The shipbuilding concern maintained that the business did not
enter into interstate commerce and therefore the Labor Relations
Board was deprived of a right to conduct an investigation.
The Board notified the corporation that a hearing would be held on
the complaint on a certain day and at a certain place, at which time
the corporation might appear and give testimony. On the day set
for the hearing the corporation filed a bill in equity in the Federal
Court for the District of Massachusetts, against certain officials of
the Labor Relations Board, to enjoin them from holding the hearing.
Within 2 weeks another bill was filed by certain employees of the
corporation, officers of the so-called Plan of Representation at the
Quincy plants, seeking substantially the same relief as the corporation.
The district court in each instance issued an injunction and decree,
which was later affirmed by the Circuit Court of Appeals. Petitions
and motions for rehearing were subsequently denied by the lower
Federal courts. Because of the importance of the questions presented
in this case, and the conflict in the lower courts, as well as an alleged
conflict with former decisions of the United States Supreme Court,
the high tribunal of the Nation granted a review of the case.
Mr. Justice Brandeis declared, in the opinion, that the district
court was without power to enjoin the Board from holding the hear­
ings, and proceeded to present the reasons therefor. The district
court, he said, has no authority to enjoin hearings, because Congress
has declared that the power to prevent any person from engaging in
any unfair practice affecting commerce shall be vested in the Board
and the Circuit Court of Appeals.
The grant of th at exclusive power is constitutional, because the act provided
for appropriate procedure before the Board and in the review by the Circuit
Court of Appeals an adequate opportunity to secure judicial protection against
possible illegal action on the part of the Board. No power to enforce an order
is conferred upon a board. To secure enforcement, the Board must apply to a

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

704

Monthly Labor Review—March 1938

Circuit Court of Appeals for its affirmance. And until the Board’s order has
been affirmed by the appropriate Circuit Court of Appeals, no penalty accrues
for disobeying it. The independent right to apply to a Circuit Court of Appeals
to have an order set aside is conferred upon any party aggrieved by the proceeding
before the Board. The Board is even without power to enforce obedience to its
subpoena to testify or to produce written evidence. To enforce obedience it
must apply to a district court; and to such an application appropriate defense
may be made.

The court pointed out that it had been decided that the procedural
provisions of the National Labor Relations Act did not offend against
the legal requirements governing the creation and action of adminis­
trative bodies,2 and, continuing, said that:
The act establishes standards to which the Board must conform. There must
be complaint, notice, and hearing. The Board must receive evidence and make
findings. The findings as to the facts are to be conclusive, but only if supported
by evidence. The order of the Board is subject to review by the designated
court, and only when sustained by the court may the order be enforced. Upon
th at review all questions of the jurisdiction of the Board and the regularity of its
proceedings, all questions of constitutional right or statutory authority, are
open to examination by the court. We construe the procedural provisions as
affording adequate opportunity to secure judicial protection against arbitrary
action in accordance with the well-settled rules applicable to administrative
agencies set up by Congress to aid in the enforcement of valid legislation.

Mr. Justice Brandéis observed, however, that the Board has juris­
diction only if the complaint relates to interstate or foreign commerce.
In expanding this point the justice said:
Unless the Board finds th at it does, the complaint must be dismissed. And if
it finds th at interstate or foreign commerce is involved, but the Circuit Court
of Appeals concludes th at such finding was without adequate evidence to support
it, or otherwise contrary to law, the Board’s petition to enforce it will be dismissed,
or the employer’s petition to have it set aside will be granted. Since the pro­
cedure before the Board is appropriate and the judicial review so provided is
adequate, Congress had power to vest exclusive jurisdiction in the Board and the
Circuit Court of Appeals.

Commenting on the failure of the Circuit Court of Appeals to re­
verse the action of the lower Federal court, Mr. Brandéis remarked:
The Circuit Court of Appeals should have reversed the decrees for a preliminary
injunction. It is true th at ordinarily the decree of a district court granting or
denying a preliminary injunction will not be disturbed on appeal. But that
rule of practice has no application where, as here, there was an insuperable objec­
tion to the maintenance of the suit in point of jurisdiction and where it clearly
appears th at the decree was the result of an improvident exercise of judicial
discretion.

In regard to the petition of certain employees of the company, the
Court pointed out that the additional allegations furnish no reason
2 N a tio n a l L a b o r R e la tio n s
view for M ay 1937, p. 1192.)


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

B oard

v.

J o n e s & L a u g h lin S teel C o r p .,

301 U. S. 1. (See Monthly Labor Re­

Industrial Relations

705

why “the Board should be prevented from exercising the exclusive
initial jurisdiction conferred upon it by Congress.”
In the case of the Newport News Shipbuilding and Dry Dock Co.,
as in the Bethlehem case, the Labor Relations Board sought to
conduct hearings on charges of unfair labor practices. In the former
case the Federal District Court refused an injunction, which was sus­
tained in the Court of Appeals. In the Newport News Shipbuilding
Case, Mr. Justice Brandéis delivered the opinion of the Court also,
but for the most part reiterated his views as presented in the Beth­
lehem case. Both cases are of vital importance to the National Labor
Relations Board, to employees, and to employers. The decisions
uphold the Board and recognize that it has authority to conduct
hearings in the first instance on charges of unfair labor practices
against an employer.
Mr. Justice Cardozo, who was ill at the time of the hearing of these
cases, took no part in the consideration or decision.
COLLECTIVE AGREEMENT IN BRITISH CHAIN
GROCERY STORES1
A COLLECTIVE agreement covering 95,000 employees of chain
grocery stores, and said to be the most extensive ever reached in the
distributive trades in Great Britain, was signed on November 22, 1937,
by the National Amalgamated Union of Shop Assistants, Warehouse­
men, and Clerks, and the United Kingdom Association of Multiple
Shop Proprietors. Together with other agreements previously nego­
tiated, affecting employees in food departments of department stores
in seven of the principal cities, the new contract brings the number of
persons now under collective agreements in the grocery and provision
trade to 100,000.
An immediate increase of 3s. a week, affecting a large proportion of
the employees, is called for, and a minimum-wage scale is to be adopted
and put into effect by the middle of March 1938.
The total number of agreements secured by the store employees’
organization in Great Britain in the past 18 months is now nearly 50,
affecting 153,500 employees. Early in 1937 an agreement was signed
covering 10,000 employees of a firm operating six large department
stores.2 At that time the representative of the Ministry of Labor who
participated in the negotiations called attention to the fact that not­
withstanding the large number of distributive workers in Great Brit­
ain, lack of collective-bargaining machinery had left their wages and
working conditions dependent upon statutory regulation. He ex1 Based on report from Alfred Nutting, clerk, American Consulate General, London, dated Oct. 27, 1937;
and Manchester Guardian, Nov. 23, 1937.
2 See M onthly Labor Review, April 1937 (p. 932).


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

706

Monthly Labor Review— March 1938

pressed the hope that joint negotiation would develop in the dis­
tributive trades as it had in the productive industries.
Commenting on the chain-store agreement, this official of the
Ministry of Labor, who participated in the latter negotiations also,
expressed a belief that its coverage was such as to make it ‘‘impossible
now for the rates set out in this agreement to be ignored by other
employers,” and that employers not parties to the agreement would
accept its terms. However, one clause of the agreement recorded the
view of both parties that “in the present status of organization” in
the distribution field, voluntary agreements required the support of
statutory action to make wage regulation generally effective. Ac­
cordingly both parties urged the Minister of Labor “to take the earliest
possible steps to obtain this objective.”

COLLECTIVE AGREEMENT IN NEWSPAPER PR IN T ­
ING IN SWEDEN
ON DECEMBER 1, 1937, according to the organ of the Swedish
Federation of Labor,1 the Typographical Union and the publishers’
association, representing 140 firms publishing 207 newspapers in
Sweden, concluded a trade-union agreement which is effective for
9 years or up to June 30, 1946. During the continuance of the agree­
ment, strikes, lock-outs, or any other hostile acts are not to be under­
taken by either party to agreement. Forcible coercion is to be re­
placed by peaceful negotiations and, if these fail, by submission of the
matter in dispute to the permanent arbitration court, whose decisions
are final and binding on both parties.
The permanent arbitration court is to be composed of three mem­
bers, who are to be appointed by agreement of the organizations of
employers and workers but who may not be members of either organi­
zation. The matters subject to negotiation and, if need be, to court
procedure are wages, trade changes, conditions of work—anything
concerning the trade and the relations between the workers and their
employers. The agreement also provides for an increase of wages.
This increase varies and is made dependent upon changes in the in­
dustry. It is stated that this agreement for the typographical trade
provides for the settlement, not only of disputes regarding the inter­
pretation of the terms agreed upon, but also of disputes that may arise
concerning wages and other material points.
1 Fackforeningsròrelsen, Organ for Landsorganisationen i Sverge, No. 49, Stockholm, 1937, p. 529.


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

Housing

FEDERAL HOUSING LEGISLATION OF 1938
THE amendment to the National Housing Act of 1934 (Public, No.
424), approved by the President, February 3, 1938, liberalizes the
mortgage and insurance provisions of the original act and guarantees
the payment of from 80 to 90 percent of the amount loaned by banks
or other finance companies.1
It is the purpose of the law to encourage residential building by
reducing the initial payment and lowering the interest rate on loans.
A vast new market for small homes will be opened, since prospective
home owners can purchase with a down payment even as low as
$500 on a $5,000 house, $600 on a $6,000 house, and a slightly higher
payment on higher priced houses. The balance of the cost price will
be taken care of by insured loans. Previously, the minimum payment
on a $5,000 dwelling was $1,000.
The Federal Housing Administrator is authorized to insure banks
and other financial organizations against losses which they may
sustain as a result of loans for the purpose of financing modernization
and repair of houses by the owners or lessees. No loan exceeding
$10,000 may be made for this purpose, and the total amount loaned
may not exceed $100,000,000. The Government guarantees such
loans up to 10 percent of the total amount loaned by any one institu­
tion for such purposes. By this provision the act is expected to
stimulate the remodeling of many older houses.
The Administrator is authorized to insure mortgages up to 90 per­
cent of the value on homes costing $6,000 or less. For homes costing
more than $6,000 but less than $10,000, loans in the amount of 90
percent of the appraised value of the first $6,000 and 80 percent of the
balance may be allowed. The act forbids any loan being made for
more than $16,000. The new act provides that loans may be made
on homes not yet constructed. The loans must have a maturity
date satisfactory to the Administrator, but not to exceed 20 years
from the date of the insurance of the mortgage. However, until July
1, 1939, a mortgage not to exceed $5,400 may mature in 25 years.
The loans under the amendatory legislation are to bear interest at
the rate of 5 percent per annum, but the Administrator is authorized
to fix the rate at 6 percent if he finds that in certain areas or under
For summary of the original act, see M onthly Labor Review for August 1934 (p. 369).


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

707

708

Monthly Lahor Review—March 1938

special circumstances the mortgage market demands otherwise. The
former mortgage insurance premium of one-half of 1 percent is
reduced to one-fourtli of 1 percent on homes costing $6,000 or less,
and for those costing more, one-half of 1 percent is to be charged.
The aggregate amount of principal obligations of all insured mortgages
may not exceed $2,000,000,000; however, the President may approve
an increase to $3,000,000,000. After July 1, 1939, no mortgages may
be insured except mortgages (1) that cover property which is approved
for mortgage insurance prior to the completion of the construction of
such property, or (2) on property the construction of which was com­
menced after January 1, 1937, and completed prior to July 1, 1939,
or (3) on property which has been previously covered by a mortgage
insured by the Administrator.
The new act also permits insurance of loans up to $2,500 for the
erection of new houses on farms, in rural areas, or in the marginal
zones surrounding the large cities where the standards established
by the mutual mortgage system set up by the original act do not
apply. Insured loans made for small dwellings must be secured by
mortgages or deeds of trust, and the houses must be built to conform
to construction requirements deemed necessary to protect the owner’s
investment.
The amended act also provides for rental housing insurance on
loans to be made to Federal or State agencies and private corporations,
associations, cooperative societies, and trusts formed or created for
the purpose of rehabilitating slums or blighted areas. Such agencies,
pending the termination of all obligations of the Administrator under
this insurance plan, will be regulated or restricted by the Adminis­
trator as to rents or sales and methods of operation, in order to provide
reasonable rentals to tenants and to permit a reasonable return on the
investment. To be eligible for this type of insurance, a mortgage on
any property or project must involve a principal obligation not exceed­
ing $5,000,000. The loan must not exceed 80 percent of the amount
which the Administrator estimates will be the value of the property
or project when the proposed improvements are completed and not
exceed $1,350 per room.
In addition to the insurance of mortgages on homes and large-scale
projects, the Administrator is authorized to insure mortgages covering
one or more multifamily dwellings, or a group of not less than 10
single-family dwellings. The loan must be in excess of $16,000, but
not more than $200,000, and not in excess of 80 percent of the amount
which the Administrator estimates will be the value of the property
when the proposed improvements are completed. The cost of each
room in this type of house may not exceed $1,150 per room. The
maturity date of the loan must not exceed 21 years and must be
satisfactory to the Administrator. The mortgage must also contain

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

Housing

709

amortization provisions. The interest rate may not exceed 5
percent.
National mortgage associations which were authorized to be estab­
lished under the original act were given added powers by the amenda­
tory legislation. Each association is now empowered to make realestate loans which are insured under title II of the act, but it may not
make loans on individually owned homes. These associations may
also purchase, service, or sell certain uninsured mortgages, as well as
mortgages which are insured.
In order to finance such transactions, the associations may issue
notes, bonds, debentures, or other obligations up to 20 times the
amount of their paid-up capital stock and surplus. These debentures
will be guaranteed as to both principal and interest by the United
States. The sale of these debentures will tend to make the mortgage
market liquid and such an arrangement is expected to foster large-scale
apartment construction.
********
HOUSING NEEDS IN THE U N ITED STATES
TWO MILLION additional dwelling units would be required to
bring housing standards to those existing in 1930, the National
Housing Committee concluded in a recent report.1 The need for new
units is concentrated among those families paying $30 or less per
month for rent or rent equivalent. On an average, 175,875 dwellings
were built per year from 1930 to 1937 and of this number 51 percent
were available only to those who could pay rents of $50 or over per
month. From 1933 to 1935 the number of families receiving $3,000
per year did not increase in proportion to the rise in national income.
Since that time the number of families paying rent of $50 or more per
month has decreased in spite of an increase in the number having an
annual income of $3,000 or more. The Committee interprets this as
“indicating a positive resistance in the upper income groups to paying
the 1929 proportion of income for rent or rent equivalent.” In 1937
only one-tliird as many persons were paying rents of $50 and over as
paid such sums in 1930. From the facts brought together the authors
of the report further conclude that, taking into account the housing
needs created by increases in the number of families and the shortages
due to demolition and obsolescence, there will be needed in 1938 and
1939 approximately 485,000 units per year, of which 66 percent
(321,000) will be for those paying $30 or less per month rent, 24 per­
cent (114,000) for those paying $30 to $50, and only 10 percent
(50,000 per year) for those paying $50 or over. This would still leave
the shortage of 2,000,000 units already mentioned. If this shortage
were made up in 1938-39 and added to the 485,000 houses needed
1 National Housing Committee. The Housing Market. Washington, 1937.


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

710

Monthly Labor Review—March 1938

to provide for new families and compensate for demolitions and
properties becoming uninhabitable, the annual market is placed at
1,500,000 units, of which only 11 percent, or 165,000 dwellings, would
be available for rent or ownership at $30 or more per month. Thus
89 percent of the new buildings would be in the rent classes below $30
per month.
National income and rents.—Statistics showing the distribution of
national income by income classes were brought together in order to
show the rent-paying capacity of families. The figures in table 1 are
for 1929, 1933, and 1935.
T able 1.— Family Income Distribution, 1929, 1933, and 1935

1

Percent of total
Income group
1929

1933

1935

Percent of
change, 1933
to 1935

Up to $499______ _______________________________
$500 to $999_____________________________________
$1,000 to $1,499__________________________________
$1,500 to $1,999__________________________________
$2,000 to $2,499__________________________________
$2,500 to $2,999______________________________ ____
$3,000 and over________ _______ ______ __________

3.0
9.6
21.9
18.9
12.7
9.5
24.4

24.6
25.4
19.2
13.7
6.4
4.3
6.4

20.6
15.9
22.7
17.4
9.2
6.2
8.0

-16.2
-37.4
+18.2
+27.0
+43.8
+44.2
+25.0

Total ____________________ _
National income (in billions of dollars)........................ .

100. 0
83.6

100. 0
39.2

100. 0
53.1

+35.5

1 1929 estimates are from Brookings Institution, America’s Capacity to Consume, 1934; those for 1933 from
Department of Commerce (C. W. A. Project), Financial Survey of Urban Housing, preliminary releases
1934; and for 1935 from Bureau of Labor Statistics (W. P. A. Project), Urban Study of Consumer Purchases,
published in part in 1937.

Special significance is attached to the increase in the proportion of
families in the lowest-income group since 1929 and the failure of the
group with incomes of $3,000 and over to increase in proportion to
the national income between 1933 and 1935. The greatest gains
between these 2 years were in the incomes of $1,000 to $3,000 and the
indications are that incomes in excess of $3,000 will not increase to
such an extent as to create an effective demand for a large volume of
higher-priced buildings.
Available statistics of rents also show that families paying the
higher rents tend to increase more slowly than families paying low
rents. Thus, the group paying under $30 per month in 1930 repre­
sented 42.9 percent of the families and in 1937 had increased to 63
percent.
In 1933 a survey made by the .Department of Commerce revealed
that in 61 cities 23.7 percent of the average family income was ex­
pended for rent. This proportion was larger than in 1929 when in­
comes were higher. Families with the lowest incomes tended to pay
a larger percentage of their income for rent than did those with more
adequate means.
Since those paying the higher rents, $50 and over per month, have
not increased as rapidly as the proportion of incomes of $3,000 and

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

Housing

711

over, the Committee concludes, in the report under review, that it
has not been necessary to increase rents to the same proportions as
existed in 1929 and that a market study based on rent groups is pref­
erable to one based on distribution of income.

ALLEY CLEARANCE IN THE DISTRICT OF
COLUMBIA, 1937
ELEVEN of the 176 squares containing inhabited alleys in Washington
had been reclaimed by the Alley Dwelling Authority for the District
of Columbia when its annual report for the year ending June 30, 1937,
was issued.1 The Authority, which was set up by an act of Congress
on June 12, 1934, is an independent Federal agency working with
public funds In the 2% years of operation a varied program of slum
clearance and reclamation has been developed; the act creating the
Authority has been upheld in two condemnation suits; and the practi­
cability of the plan has been demonstrated.
Projects provided are designed to accord with the neighborhood
where they are placed. The Authority has made every effort to avoid
shoddy construction and land overcrowding, while at the same time
keeping prices down. Economy has been of special importance, as
no subsidy is afforded for the buildings erected and they must rent at
prices within the reach of low-income families.
The Authority has not only erected dwellings which it rents and
manages itself, such as the 23 single-family houses, known as Hopkins
Place,2 but has demonstrated the feasibility of cooperating with
quasi-public agencies and private individuals in eliminating inhabited
alleys. Having acquired certain sites and cleared them, some property
has been sold to nongovernmental groups, thus bringing private finance
into the work of slum reclamation and freeing Federal funds for further
operations. The Authority seeks to widen private building activity
rather than to encroach upon it.
Work was started with a $500,000 fund at a time when there was a
housing shortage in Washington. The Authority’s immediate concern
was therefore rehousing, and the funds were divided among projects
that would show immediate returns. The report here reviewed states
that having reclaimed 11 squares containing 13 inhabited alleys, the
values created are “at least equal in dollars to the amount of all funds
made available.” In order to maintain the program on a sound
financial basis, constant checking on costs is required. This entails
1 Alley Dwelling Authority for the District of Columbia. Report for the fiscal year July 1 ,1936-June 30,
1937. Washington, 1937.
2 For a description of this development see the Monthly Labor Review for March 1937 (p. 550).

46585—38------10


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

Monthly Labor Review—March 1938

712

careful study before any land is acquired, review of plans for construc­
tion, and careful consideration of bids for building. Contracts are
let to the lowest responsible bidders. While overhead is kept within
the lowest possible limits, operations are not yet on a sufficiently large
scale for current receipts to carry the necessary overhead.
At the beginning of the fiscal year the financial resources amounted
to $316,381. This sum had been increased to $352,841 by the end of
the year, owing to an additional allocation by the President, sales of
sites, rents from completed projects, revenues from demolitions, etc.
Constant study and resurvey of alleys has been carried on, and only
such land as could be advantageously assembled for clearance has been
purchased. While the law permits acquisition of land at 130 percent
of the assessed value, the Authority has actually obtained it at an
average of 112.8 percent thereof. The lowest percentage was 61.39;
in condemnation suits the price has ranged from 85.19 to 124.15 per­
cent of the assessed value.
Buildings erected provide for ample light and air, sanitation, and
adequate space. Although housing developments are in closely built
sections of the city, lot coverage has been kept far below legal require­
ments. Booms are of generous size and modern equipment has been
installed, not only because this is believed to be socially desirable but
also as a sound investment. The Authority found that buildings over
two stories high cost more per cubic foot and per room than low
buildings. This discovery in providing one project led to two-story
construction on the next two' apartments erected.
The Authority regards housing needs as involving more than ridding
Washington of inhabited alleys and looks to other agencies to play an
important part in improving living conditions. Insofar as its powers
permit, however, the Authority is prepared to provide low-cost
housing instead of putting cleared land to other productive uses, as
the enabling legislation permits.
The accomplishments up to June 30, 1937, are listed by the Author­
ity as follows:
During the past fiscal year the Authority has demolished 77 houses and has
completed:
Hopkins Place SE., low-renting housing for Negroes.
W Street Apartments NW., low-rent housing for Negroes (occupied July 15,
1937).
It has let contracts for, and work is now in process on—
K Street project SW., low-rent housing for white families.
St. Mary’s Court NW., low-rent apartm ent house for Negroes.
It has acquired the property necessary for reclamation in—
Odd Fellows Court SE.


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

Housing

713

It has sold its acquisitions in—
Bissels Court NW. to the George Washington University.
Valley Street NW., to a private developer (part of acquisition still retained).
At the beginning of the fiscal year, July 1, 1936, the Authority had five com­
pleted projects:
Rupperts Court SE., automobile repair shop.
Browns Court SE., storage garages.
Douglas Court NE., storage garages.
Stanton Court NW., storage garages.
O’Brien Court NW., automobile parking lot.
It has begun acquisitions in three other squares. For one of these it has made
plans th at include group one-family houses and an apartment house. For
another it proposes one-family houses.
Some 20 additional squares are now being studied to determine the best form
of redevelopment, and to estimate the probable costs of acquisition and develop­
ment. The speed with which this work will be carried forward depends chiefly
upon the capital available, though, if condemnation suits are necessary, there
will be delays due to court proceedings.


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

Industrial Disputes

TREND OF STRIKES
THE number of strikes beginning in January and the number of
workers who went out on strike during the month were greater than
in December although considerably smaller than any other month of
1937. As compared with December, the figures for January show
increases of 10 percent in number of strikes, and 19 percent in number
of workers involved, but a decrease of 31 percent in man-days of idle­
ness. The decrease in man-days idle was due principally to a smaller
carry-over of workers who had begun their strikes in previous months.
Trend of Strikes, 1933 to January 1938

Workers involved
in strikes

Number of strikes
Year and month

1933
1934
1935
1936

Con­
tinued Begin­ In prog­ Ended
from
ning in
ress
in
preced­ month during month
or year month
ing
month

______________
. ......................
-

1637

January___ __________
February______ _____
March____ _______ . . .
April___ ___________
May------------------------J u n e ___ _____ _____
July_________________
August___________ . . .
September____ . . . ___
October________ ___
N ovem ber______ ___
December i___________
1938

January i..

___ _____

In effect
at end
of
month

Begin­
ning in
month
or year

In prog­
ress
during
month

1,168,272
1,466, 695
1,117, 213
788, 648

1,695
1,856
2,014
2 ,172

_________
198S

January______________
February_____________
M a rc h _________ _____
April________________
M ay________________
June_________________
July_________________
August______________
September___________
October. ____ . . .
November___ . ___
December.__ ____ . . .

1
Man-days
idle
during
month
or year

16, 872, 128
19, 591,949
15, 456,337
13,901,956

84
102
119
130
134
121
151
127
145
143
116
126

167
148
185
183
206
188
173
228
234
192
136
132

251
250
304
313
340
309
324
355
379
335
252
258

149
131
174
179
219
158
197
210
236
219
126
158

102
119
130
134
121
151
127
145
143
116
126
100

32,406
63,056
75,191
65,379
72,824
63,429
38,017
68, 752
65, 994
100, 845
70,116
72,639

59,153
89, 735
122,162
95, 526
123,030
133,531
125, 281
118, 268
130,875
148, 570
157,007
184,859

635,519
748, 491
1, 331,162
699,900
1,019,171
1, 327, 678
1,105,480
911,216
1,063,100
1,053,878
1,940, 628
2,065, 733

100
139
146
248
267
327
349
285
280
245
180
171

171
210
609
527
598
595
452
430
343
292
232
150

271
349
755
775
865
922
801
715
623
537
412
321

132
203
507
508
538
573
516
435
378
357
241
191

139
146
248
267
327
349
285
280
245
180
171
130

108, 641
112, 215
289, 813
220,495
322,878
280,093
142, 594
138, 561
84,245
62, 704
06,168
27, 000

214, 288
239, 229
357, 664
392,435
441, 277
474,184
353,782
235,121
155,082
118,061
110,822
57, 000

2, 720,441
1, 520,810
3, 290, 230
3,367,630
2,955,851
4,986,126
3,024, 556
2,238,850
1,407, 536
1,146,156
897,739
660, 000

130

165

295

175

120

32, 000

50,000

455, 000

1 Strikes involving fewer than 6 workers or lasting less than 1 day are not included in this table nor in the
following tables. Notices or leads regarding strikes are obtained by the Bureau from more than 650 daily
papers, labor papers, and trade journals, as well as from all Government labor boards. Letters are written
to representatives of parties in the disputes asking for detailed and authentic information. Since answers
to some of these letters have not yet been received, the figures given for the late months are not final. This
is particularly true with regard to figures for the last 2 months, and these should be considered as preliminary
estimates.

714

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

Industrial Disputes

715

As compared with January a year ago, there were about the same
number of strikes, but less than one-third as many workers involved
and only about one-sixth as many man-days of idleness. It will be
recalled that in January 1937 the strike .against the General Motors
Corporation and maritime strikes on both coasts were in progress.
The preliminary figures for December and January are necessarily
subject to revision as later information is received. An analysis of
strikes in each of these months, based on detailed and verified infor­
mation will appear in subsequent issues of the Monthly Labor Review.
W

W

W

ANALYSIS OF STRIKES IN NOVEMBER 1937 1
THE BUREAU has obtained detailed information on 232 strikes,
which began in November 1937, involving more than 66,000 workers.
The following analysis is based on these strikes plus 180 which con­
tinued into November from preceding months, making a total of 412
strikes in progress, involving nearly 111,000 workers, and resulting in
almost 900,000 man-days of idleness during the month.
There were more new strikes (44) in retail and wholesale trade than
in any other industry group during November. Other groups with a
comparatively large number of strikes were transportation and com­
munication (24), textiles (24), food industries (21), and domestic and
personal service (17). The strikes in these five industry groups
accounted for 56 percent of the total new strikes in November. The
most man-days of idleness were in (1) the domestic and personal
service industries—mainly due to the strike of laundry workers in
Cincinnati, Ohio, and northern Kentucky; (2) the lumber industries—
due principally to disputes in sawmills and logging camps in Oregon
and Minnesota; (3) the automobile industry—due to strikes in De­
troit and Pontiac, Mich.; and (4) the textile industries where 58 strikes
in the fabric and clothing industries were in progress during the month.
More than one-fourth (64) of the new strikes in the United States
during November were in the State of New York. Another fourth
of the strikes were in Pennsylvania (28), New Jersey (17), and Cali­
fornia (13). Of the 66,168 workers involved in the strikes beginning
in November, 34 percent were in Michigan strikes and 21 percent in
Ohio. A short strike at the Hudson Motor Car Co. in Detroit, and
another at the Goodyear Tire and Rubber Co. in Akron, accounted
to a considerable extent for the large number of workers involved in
these two States. The most man-days of idleness because of strikes
in November were in New York (119,853), Minnesota (97,032),
Pennsylvania (62,609), Michigan (59,832), and Oregon (55,935).
The high figure for Minnesota is accounted for partially by the strike
of timber workers in the northern part of the State, which began
1 Detailed information on a few strikes has not yet been received.
Data on missing strikes will be included in the annual report.


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

(See footnote to preceding table.)

Monthly Labor Review—March 1938

716

about the middle of October and continued until the latter part of
November. In Michigan there were two strikes during the month
at the Fisher Body plant in Pontiac, in addition to the Hudson strike,
which contributed substantially to the number of man-days idle. In
Oregon there was the dispute which had kept Portland’s lumber
mills closed since August. (See table 2.)
T

able

1.— Strikes in November 1937, by Industry
Beginning in
November

Industry

A ll in d u s trie s
Iro n a n d stee l a n d th e ir p ro d u cts, not in c lu d in g m a c h in e ry —

Blast furnaces, steel works, and rolling mills................. ...
Cast-iron pipe and fittings---------------------------------------H ardw are..----- ---------------------------------------------------Steam and hot-water heating apparatus and steam fittings.
Stoves________________ _________ _____ —
Structural and ornamental metal work..............
Tin cans and other tinware.............. .................. .
O ther.--------------- ---------------- -------- ---------Machinery, not including transportation equipment.
Electrical machinery, apparatus, and supplies.
Foundry and machine-shop products------------Radios and phonographs................................... -.
Other-------- --------------------- ---------------------Transportation equipment--------------- ----------------Automobiles, bodies and parts--------------------Shipbuilding............................................. ..........
Railroad repair shops..------- ----------------- ----------Electric railroad................... ...............................
Nonferrous metals and their products-----------------Brass, bronze, and copper products............ .—
Clocks and watches and time-recording devices.
Lighting equipment_______________________
Silverware and plated w are.......... ................. .
Stamped and enameled ware_____ _____ ____
lum ber and allied products______ _____ _______
Furniture____ _____________ _____ _______
Millwork and planing.------------ ------------------Sawmills and logging camps............................. .
Other........... ............ ................................... ........
Stone, clay, and glass products--------------------- -----Brick, tile, and terra cotta....................................
C em ent.................... ....................... .....................
Glass---------------------- ------------------------------Marble, granite, slate, and other products------Pottery........... ......................... ...........................
Other________________ _____ ______ _____
Textiles and their products______ __________ ____
Fabrics:
Carpets and rugs...................
Cotton goods-------------------Dyeing and finishing textiles.
Silk and rayon goods______
Woolen and worsted goods..
Other______ ____ ______ _
Wearing apparel:
Clothing, men’s_________
Clothing, women’s _______
Corsets and allied garments.
Men’s furnishings................
Hats, caps, and m illinery...
Shirts and collars________
Hosiery------------------------Knit goods________ _____
Other------ ----------------------


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

In progress dur­
ing November Mandays
idle
during
Work­ Novem­
Num­ Work­
N u m ­
ers in­
ers in­
ber
ber
ber
volved
volved
232

66.168

4

369

2
1
1
5
2
2
1

194
142
33
911
232
662
17

10

23, 510
23, 337
173

1

412 110, 822
12
1
2
2
1
1
3
1
1
13
5
3
2
3
12
11
1
1
1
6
2
1
1
1
1
26
11
1
6
8
11
2
2
4
1
1
1
58

2

120

1

40

1
11
7
1
2
1
6
1

80
1,699
1,294
55
250
100
516
67

3
]
1

146
175
128

24

3,123

1
2

149
798

6

2
1
3

132
500
52

2
4
2
6

2
5
1

17
200
11

2

617

1
1
3

300
6
341

1

2

15

1
1

4
1
3
5
5

897, 739

1,996
311
518
308
250
190
244
142
33
2,055
633
680
557
185
25, 599
25, 426
173
110
110
456
172
25
74
105
80
8,727
1, 578
55
6,530
564
1,209
217
349
177
175
128
163
10, 062

28, 943
5, 287
4, 758
6,468
6, 250
2, 280
2, 302
1,136
462
26,352
7,694
5,408
9, 265
3,985
101,454
100, 070
1,384
770
770
4,408
2,248
225
740
315
880
144,651
17,107
605
119, 270
7, 669
18, 564
4,822
8, 725
1,790
1, 400
1,664
163
100,932

149
2,013
159
472
747
196

1,490
16,191
3,819
5, 387
5,687
2,099

17
1,405
11
55
2, 735
190
782
143
988

34
27, 250
110
275
3, 405
2, 660
11,057
1,640
19, 828

Industrial Disputes
T able

717

1.— Strikes in November 1937, by Industry—Continued
Beginning in
November

Industry

leather and its manufactures. . _ _ _
Boots and shoes____________________ . . . ___ _ ___
. . ___________________
Leather_______ ______
Other leather goods________________ ________________
Baking.. ____________ ______________ __________ _
Beverages_________ _________ _________________ _
Canning and preserving___________________ ___ ____
Confectionery______________________ . . . . . . . . . . .
Slaughtering and meat packing___ _________________
Other _________________ _________ ________________
Tobacco m a n u f a c t u r e s _
...
. . . .
Cigars__________ _________________________ _______
Paper and printing______ ______
Boxes, paper___________ _______ _ .
___________
Paper and pulp________ __________ . . . ___________
Printing and publishing:
Book and job__________________________________
Newspapers and periodicals______________________
Other__________ . ______ _____________________
Chemicals and allied products __________________________
Petroleum refining_________________________________
Other_________ ________________________________
Rubber products__________ ___________________________
Rubber tires and inner tubes.. . _____________ . . . ...
Other rubber goods______________ _ .. . . _________
Miscellaneous manufacturing. _ . . . ____________ ___ .
Electric light, power, and manufactured g a s . ___ ____
Broom and brush______________________ __________
Furriers and fur factories_________
.
_____ ____
Other_______ ___________ _____ __________________
Extraction of m in e ra ls.___. . . __________ .
Coal mining, anth racite... . __________ . . . ._ . . . . .
Coal mining, bituminous . . . ________ . . . . . . . _ _
Quarrying and nonmetallic mining_________ _ _______
Crude petroleum producing_________________________
Transportation and communication .. .
_
Water transportation________ _ ____________________
Motortruck transportation_____________________ ___
Motorbus transportation____________________________
Taxicabs and miscellaneous___
_ ______________
Telephone and telegraph_____ ___ ________________
Wholesale______ . .
_______ ___________ ______
Retail.
... . . . .
. . . . . .
. .
Domestic and personal service
.
. . . . . . ___
Hotels, restaurants, and boarding houses. . _ ______
Laundries. _ _________
_____________ . ______
Dyeing, cleaning, and pressing____________ ____ ____
Elevator and maintenance workers (when not attached to
specific industry)___ _____________________________
Professional service. _________ . . . __ . ______________
Recreation and amusement ______ _ _______ ______ _
Professional_____________________ . . . _____________
Building and construction.. . . . . . . ._ _ _ ................. ...... ...
Buildings, exclusive of P. W. A ...
______ _________
All other construction (bridges, docks, etc., and P. W. A.
buildings). _____________________________________
Agriculture and fish in g__ . . . . . . _____ _ _
Agriculture.. ________ . . . ______________ ________
Other nonmanufacturing industries . . .
. . . . . . . ___

In progress dur­
ing November Mandays
idle
during
Num ­ Work­
Num­ Work­
Novem­
ers
in­
ers
in­
ber
ber
ber
volved
volved
3
1

219
117

2
21
7
4
3
1

102
1 740
' 181
264
110
100

5
1

885
200

12
1
2

1,243
371
123

4
3
2
3
2
1
2
1
1
15
1
1
3
10
5
2
2

155
325
269
1,932
1,232
700
13,650
13, 500
150
825
20
61
104
640
1,757
967
87

1
24
13
6
2
2
1
44
10
34
17
8
4
3

8
3
2
3
30
12
4
5
2
1
5
1
1
1
17
1
2

1,277
378
505
394
2 746
728
264
457
122
90
885
200
640
640
2,327
371
123

15, 043
1,677
11,805
1, 561
32 871
13^ 998
2,954
9,387
988
2 250
2,694
600
10 880
10' 880
31' 613
7,049
2,118

703
6, 637
4, 425
607
1,376
80
149
3 400
' 507
2, 893
1,898
991
279
360

6
638
900
5
3
295
2, 002
4
1,232
2
2
770
3 13, 740
1 13, 500
2
240
1,979
28
2
78
1
61
104
3
1,736
20
8 2,279
2
967
552
3
1
21
2
739
40 16, 555
17 13,033
1,270
15
1,388
3
4
715
1
149
67
6 109
14
i; 252
53
4, 857
35
7,575
17 2, 331
9 3,290
1,599
5

11,123
8,448
2,875
20, 283
11,813
8, 470
28, 230
27, 000
1,230
16, 728
1,718
183
1,517
13, 310
16,118
1,141
11,157
252
3, 568
70, 530
44,226
10, 601
7, 772
7, 782
149
64, 012
2i; 418
42,594
150,510
44,004
71,826
31, 605

2
6
5
1
13
11

268
933
921
12
1,163
873

4
6
5
1
18
15

355
933
921
12
1,584
1, 225

3,075
1,133
977
150
6,480
5,154

2
1
1
4

290
57
57
466

3
2
2
8

339
89
89
793

1, 326
1,218
1,218
6,016

Of the 412 strikes in progress during November, 12 extended into
2 or more States. The largest of these was the strike of longshoremen
on the South Atlantic Coast which began in October and was settled
November 5.


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

718

Monthly Labor Review—March 1938
T able 2.— Strikes in November 1937, by States
Beginning in
November

State

In progress
during November

Mandays
idle
during
Novem­
Workers
Workers
Number
Number involved
involved
ber
232

66,168

412

110,822

897,739

3

152

7
1

970
4, 227
80
841
660
135
3,041
2,561
64

14, 774
40
42, 545
320
759
4,331
1,791
36,764
43, 265
175

196
295
768
1,353
22,616
4, 519
61
3,561
106
19

1,805
4, 580
9, 449
23,486
59,832
97, 032
1,159
48, 677
498
19

1, 564
8,907
1,788
232
14,518
1, 453
4,195
5,408
512
175

14,129
119,853
4,963
648
40, 755
11, 760
55, 935
62, 609
584
1,400

87
1,606
1,737

1,044
15,062
21, 237
30
18, 149
5,230
4,585
18,414
110, 051

1

20

13

2,168
80
575
472

27

1,423
497
64

14
13

75
145
425
365
22, 580
216
61
699
96
19

2
2
6

1

5
5
6

7
2
1
1

3
6

9
2
1

3
2
1

17
64
2
1
8
2

4
28
2
1
1
6
6
1
1

4
1

4
7

939
3, 765
1,037
23
14,070
797
1,196
3,256
512
175
87
1,041
1,337
10
21

703
85
607
6,375

1
8
8
2
2

14
10
6
1
11

3
1

23
114
5
3
15
4
7
47
2
1
1

9
8
1

4
6

3
8
12

20

10
866

731
248
1, 240
19, 452

The average number of workers involved in the 232 strikes beginningin November was 285. About 65 percent of them involved fewer than
100 workers each and 31 percent involved from 100 to 1,000 each,
leaving only 4 percent (9 strikes) in which 1,000 or more workers were
involved. Seven of these 9 strikes involved from 1,000 to 5,000
workers each and the other 2 involved more than 10,000 workers
each. These were the strikes at the Hudson Motor Car Co. and the
Goodyear Tire and Rubber Co., referred to before. In table 3 the
strikes in each industry group are classified according to the number
of workers involved.


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

719

Industrial Disputes

T able 3.— Strikes Beginning in November 1937, Classified by Number of Workers Involved
Number of strikes in which the number
of workers involved was—
Industry group

Total

6
20
100 500
and and and and
un­ un­ un­ un­
der der der der
20
100 500 1,000

232

62

89

58

4
5

1

2
1

2
2

1,000 5.000

and
un­
der
5,000

and 10, 000
un­ and
der over

10.000

14

7

2

3

1
2

4

1

4

1

M a n u fa c tu r in g

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_______ . . . . .
Chemicals and allied products.. ..

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

Miscellaneous m anufacturing___

. .

10
2
11
6

1

24
3

9

5
4
7

21
12

1
6

1
11

4

3

2

5

2

15

5

8

5
24
45
17
6
13
1
4

1
4
19
4
4
2

2
9
17
5

2

5

3

1

3
3

1

1
1

1

1
1

2

N o n m a n u fa c tu rin g

Transportation and communication__
T rad e.. . . . . . . _ . . _______

____________ _

Building and construction_______ _________
Other nonmanufacturing industries__

. . _ ...
.......

.

1

8
1
1

9
6
7
2
3

2
2
i

2

2

Recognition or other union-organization matters were the major
issues in 57 percent of the strikes beginning in November, and wages
and hours were the major issues in 23 percent. About 31 percent of
the workers were included in the first group and 14 percent in the
latter. In about 20 percent of the strikes the major issues were mis­
cellaneous matters, including sympathy, union rivalry, jurisdiction,
and miscellaneous grievances not coming under the heading of wages
and hours or union-organization matters. Nearly 56 percent of the
total workers involved were in this miscellaneous group of strikes.
This large proportion of workers was partially accounted for by the
two largest strikes of the month which have been referred to pre­
viously, in which the disputes centered around an alleged increase of
work load in one case and lay-offs without proper observance of
seniority rights in the other. (See table 4.)
Nearly 60 percent of the 412 strikes in progress during November
were terminated during the month with an average duration of 21
calendar days. About 32 percent of these strikes lasted less than a
week, 44 percent from a week up to a month, 21 percent from 1 to
3 months, and 8 strikes had been in progress for 3 months or more.
The strikes ending in November in each industry group are classified
in table 5 according to duration.

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

720

Monthly Labor Review—March 1938
T able 4.— Major Issues Involved in Strikes Beginning in November 1937
Strikes
Major issues

Workers involved

Number

Percent
of total

Number

Percent
of total

All issues___ ___________ ____________________ _______ .

232

100.0

66,168

100.0

Wages and hours... _ ________ _____ ___________ ___
Wage increase___________ _____________________ ____
Wage decrease__
. . _ _ _ _ _ _ __ ___________ . . .
Wage increase, hour decrease______________ ______ ___
Hour decrease_____________________ __ _____________

54
31
1
20
2

23.3
13.4
.4
8.6
.9

9, 015
6, 732
700
1,377
206

13.6
10.1
1.1
2. 1
.3

Union organization________
_ .................
__ ___
Recognition.. ______ _____ _ __ ________ _______
........._ _ _ _ _ _
Recognition and wages
_ .
.
Recognition, wages, and hours_____ _
____ ______
Closed shop_______ _ ..
_ ______ ______ _________

132
22
34
34
22
13
7

56.9
9.5
14.7
14.7
9.5
5.5
3.0

20,286
2,043
4,736
3, 251
3,039
6,368
849

30.7
3.1
7.2
4.9
4.6
9.6
1.3

Miscellaneous_______________ _____ __________ _______
Sym pathy____ _ ______ _________________________
Rival unions or factions_______ ____ _____ _____ _
Jurisdiction________________________________________
Other__________ _________________________________
Not reported ____ _____ _ _ _________ ___________

46

19.8
.9
2.6

36,867
111
1,299

55.7

2.2

222

.3

2

6
5
32
1

13.7
.4

.2

2.0

35, 221
14

53.2
(')

1 Less than Ho of 1 percent.

T able 5.— Duration of Strikes Ending in November 1937
Number of strikes with duration of—
Total

Industry group

241

1 week H and 1 and
2 and
3
Less
and
less
less
less months
than 1 less than
than
3 or more
1
than
2
week than Vi month months months
month
77

61

45

38

12

8

M a n u fa c tu r in g

Iron and steel and their products, not including
Machinery, not including transportation equip­
ment__ _ _________ ___________________

2

2

1

1

7
7
1
5
12
5
32
4
18
8
2
15

1
3

2
4

1

1

1

1

1

4
2
8
2
8
3

2
2
2
12

1
3
3
1
5
1

1

1

2
1

1

4
28
41
22
5
14
1
4

3
14
18
4
5
8

1
3
1

1
2

6

4
7
2
1
3

2

4

3

2
1
5

4
10
6

5
5
6

1
4
4
3

2

3

1
1

N o n m a n u fa c tu r in g

Trade _ _ _ _

_ _

__

_

____

3

1
1

1

About 46 percent of the strikes ending in November, which included
49 percent of the total workers involved, were settled with the assist
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

721

Industrial Disputes

ance of Government conciliators or labor boards. The workers in
most of these cases were represented by union officials. Forty per­
cent of the strikes, including 48 percent of the workers involved, were
settled through negotiations directly between the employers and
representatives of organized workers. Twenty-six small strikes, as
shown at the end of table 6, were terminated without formal settle­
ments. In most of these cases the strikers returned to work without
settlements of the issues involved or they lost their jobs entirely when
employers discontinued business or hired new workers to fill the
places of the striking employees.
T able 6.— Methods of Negotiating Settlements of Strikes Ending in November 1937
Workers involved

Strikes
Negotiations toward settlements carried on by—

Employers and representatives of organized workers directly.
Terminated without formal settlem ent--. - ....... .

------

Percent
of total

Number

Percent
of total

Number

241

100.0

75, 701

100. 0

1
96

.4
39.8
45. 7
3.3
10.8

90
36, 267
37, 092
1,021
1,231

.1
48.0
49. 0
1.3
1. 6

no
8
26

Results of the strikes ending in November are indicated in tables 7
and 8, the latter showing results in relation to the major issues in­
volved. About 43 percent of the strikes, including 35 percent of the
workers, resulted in substantial gains to the workers; 37 percent of the
strikes, including 61 percent of the workers, resulted in partial gains
or compromises; and 16 percent of the strikes, including 3 percent of
the workers, brought little or no gains to the workers.
The settlements reached in November indicate a greater degree of
success, from the workers’ standpoint, in the strikes over union-organi­
zation matters than in those primarily over wages and hours. Of the
wage-and-hour strikes, the workers won 38 percent, compromised 47
percent, and lost 15 percent, as compared with 46, 37, and 16 percent,
respectively, of the union-organization strikes. Of the workers in­
volved in the wage-and-hour strikes 12 percent won their demands,
86 percent obtained compromises, and 2 percent gained little or noth­
ing. In the union-organization strikes 31 percent of the workers won,
63 percent obtained compromises, and 6 percent gained little or
nothing.


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

722

Monthly Labor Review—March 1938
T able 7.— Results of Strikes Ending in November 193
Strikes
Results

Substantial gains to workers---------------- -------------------------_ ------------ .
----Partial gains or compromises___ . . .
Little or no gains to workers____.. - . . . . . .
_ -----------Jurisdiction, rival union, or faction settlements.— ..................
Not reported... . ----------------- --------------------- ---------

Workers involved

Number

Percent
of total

Number

Percent
of total

241

100.0

75, 701

100.0

103
90
39
8
1

42.8
37.3
16.2
3.3
.4

26, 359
45,953
2,445
884
60

34.8
60.7
3.2
1.2
.1

T able 8.— Results of Strikes Ending in November 1937 in Relation to Major Issues

Involved
St rikes res ulting in

Major issues

Total

Sub­
stantial
gains to
workers

Partial Little
gains
or no
or com­ gains
to
pro­ workers
mises

Juris­
diction,
rival
union, Inde­ Not re­
or fac­ termi­
nate ported
tion
settle­
ments

Number o f strikes

Other. _____ . . .

_____ __ ____ ____

Sympathy________ _________ _____ _
Jurisdiction_______________ _________

241

103

90

39

60
33
1
24
2

23
11

28
17

12

11

9
5
1
1
2

140
22
36
2
46
22
8
4
41
3
4
4
30

65
11
13

52
6
19
1
13
7
5
1
10
1

24
11
3
3
15

15

9

8

1

22
5
4
1
8
4
8
2
6

1

1

8
4
4

Number of woikers involved

75, 701

26,359

45, 953

2,445

15,990
Wage increase______ . . . .
. . 6, 256
Wage decrease .
___ ______ .
54
9, 524
156
24, 982
1,261
6,892
206
Recognition, wages, and hours.. ___
8,065
2,909
Discrimination...
________
5, 370
O th e r...____ ______ ______ . . . . .
279
34, 729
Sympathy_____________ ____ _ . . . .
119
702
Jurisdiction....... ........................ . . .
182
Other___ _______ _____ __________ _ 33, 726

1,899
1,244

13, 702
4,845

655

8,857

7, 702
777
1,064

15, 719
233
5, 347
175
3, 090
1,639
5, 045
190
16, 532
90

389
167
54
12
156
1, 501
251
481
31
532
206


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

4, 383
1, 064
325
89
16, 758

16, 758

16,442

555
29
526

884

60

60

60

884
702
182

723

Industrial Disputes

CONCILIATION WORK OF THE DEPARTM ENT OF
LABOR, JANUARY 1938
DURING January 1938 conciliators of the Department of Labor
handled 111 disputes which involved directly and indirectly about
39,190 workers. This mediation service was requested by either one
or both parties to the disputes. Some of these disputes had already
developed into strikes before the Department of Labor was requested
to intervene. In others, strikes were threatened but had not yet
taken place. In some cases, although no strike was immediately
threatened, a controversy between employer and workers had de­
veloped to such a stage that an outside mediator was deemed
necessary.
T able ].— Disputes Handled by Conciliators, January 1938, by States
Total disputes

Threatened strikes
and controversies

Strikes

State
Workers Number Workers Number Workers
Number involved
involved
involved
Alabama........................... ........... .......... .
California- _
_
_ District of Columbia--- ______________
Florida_____________________________

3
6
3
1
1
10
7
2
2

325
i 824
031
2, 400
575
i 372
i 721
2, 306
171

2
2
3

(')

1

1

575
■357
1 486
2 306
116

1

55

.4
3

2

279

2
3

5
2
5
2
4

50
590
in

1 640

Oregon
_ _____ _
_
Pennsylvania_______________ __ . __

6
11
4
4
1
14

329
590
i 996
i 2, 608
‘ 1, 785
2, 585
1 308
8, 674
i 3j 274

1,385
1 308

4

1 1,124

Rhode Island- _____________________
South Dakota____________ __________
Tennessee__________________________
Texas_______ ___ ___
_ ...........
Vermont_______ . . . _______ - - ___
... _ ... . .
Virginia_____ _ .
W ashington.. _
_
__
_
West Virginia________ ____ _________
Wisconsin____ .
. ...
...

1
1
4
1
2
7
i
3
2

146
(i)
1. 707
(l)
i 427
5, 767
1, 500
169
0)

1
1
4

146
(!)
1, 707
(i)
1 427
595

2
2

Total________ ________________

111

39, 190

63

Illinois_____________ ________________
Indiana.- _________________________
Iowa _ __
____________
___
Kentucky___________________________
M aryland__________________________
Massachusetts_______________________
Missouri________________ - ________
New Jersey..- ______________________
New York__________________________
North Carolina ________ __________ .

1

7

6
2

1

2
2

630
631

1 885

835

1
4

1 194

1

2, 400

3
1

15
235

2
4

6
2

325

11,773

1, 145
1, 200

1
10

8 674
i 2,150

155

5
1
1

5,172
1, 500
14

1 13, 587

48

1 25, 603

«

i Exact number not known.

The Department of Labor conciliators were successful in adjusting
49 of these disputes, 51 were pending at the end of the month, 5 were
referred to other services, 4 were settled by the disputants themselves
before the arrival of the conciliator, and 2 could not be adjusted.
The majority of these disputes concerned demands for wage in­
creases. Many were due to alleged discrimination against union
members for union activity, others were for union recognition and

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

Monthly Labor Review—March 1938

724

selection of sole bargaining agency. Some involved hours, overtime
rates of pay, vacation with pay, seniority rights, and general working
conditions.
These 111 disputes were scattered among 26 States and the District
of Columbia. Workers involved in the disputes are classified in
table 2. Strikes numbered 48 and controversies, 63.
T able 2.— Disputes Handled by Conciliators, January 1938, by Craft of Workers Involved
Total disputes

Threatened strikes
and controversies

Strikes

Craft
W orkers Number Workers Number W orkers
Number involved
involved
involved
3
1
1
4
1
1
1
3
]
1

917
(>)
265
257
235
44
(i)
* 25
0)
(>)

1
1
1
3

1
1

0)

12
1
6
3
3
2
1
1
2

i 1, 290
40
i 5, 723
400
597
74
367
i 1,315
110
450

6
1
3
1
2
2
1
4

1 356
40
3,323
135
422
74
367
i 715

2

450

2
1
8
2
1
2
1
4
3
1

6, 660
0)
i 679
158
150
i 150
35
i 105
i 8, 674
1, 000

1
6
2
1

0)
i 662
158
150

1
2
1

35
‘ 95
(>)

1

1
2

8
117

1
1
1

1

8
117
590
1,606
441
620
515
i 5, 321
85
167

106
116
590
400
i 3, 583
85
167

111

i 39,190

2
3
2
2
2
2
17

1

1 Exact number not known.


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

,

1
1
1

10
63

887

2

i 30

1
1
1
1
2

1
235
44
0)
(>)

1

0)

0)

265
i 256

25

i 13, 587

6

1 934

3
2
1

2,400
265
175

1
1

600
110

2

6,660

2

17

2

i 150

2
2
1

10
i 8, 674
1,000

3
1
1
1
1
7

590
1,500
325
30
115
i 1,738

48

i 25, 603

Labor Statistics

ACTIVITIES OF THE CENTRAL STATISTICAL
BOARD, 1936-37
THE principal field of activity of the Central Statistical Board is in
reviewing plans for proposed statistical studies and checking the opera­
tions of projects already under way. This work was considerably
expanded during the fiscal year 1936-37 as a result of a resolution by
the Central Statistical Committee requiring Federal Departments and
agencies to submit to the Board questionnaires which have been pre­
pared for use in statistical inquiries. In its third annual report, the
Central Statistical Board presents details of its operation for the fiscal
year ending June 30, 1937.
Wide decentralization of the Government’s statistical organiza­
tions, resulting from the development of statistical work as an aid to
administration, had tended to create duplication of effort and lack of
uniformity in presentation of results. Through its review functions
the Board has been able to locate and prevent many of these duplica­
tions. Suggestions have been made looking toward improvement in
reliability, accuracy and usefulness of the various statistical reports.
The Board has been instrumental on several occasions in effecting
informal cooperative arrangements between departments for the more
economical and efficient pursuit of statistical inquiries, the results of
which are of general value. Its continued emphasis on standardized
definitions and classifications has made the statistical output of wider
usefulness and has done much to simplify reports requested of business
concerns.
During the fiscal year covered by this report, the Board reviewed
nearly 900 questionnaires or other documents which were submitted in
connection with proposed statistical inquiries. In many instances
several interested agencies were consulted for advice and criticism as
to the feasibility of the project or details of the questionnaires. For
example, the trial schedules for the 1940 census of agriculture were
sent to 16 different agencies.
The Board has also been active in promoting simplification of re­
ports required under the Social Security Act. The report notes that
suggestions have been made for several technical amendments to the
act, designed to reduce the heavy clerical burden on reporting firms.


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

725

726

Monthly Labor Review—March 1938

Through a joint unit known as the Coordinating Committee, the
Board has continued its review activities in connection with The
Works Program. Members of the staff have given technical advice
and assistance in drafting project plans. A comprehensive study of
data-compiling projects has been made available to project sponsors
who are seeking suitable means of supplying employment to whitecollar relief workers.
Another important field in which the Central Statistical Board has
been active is in the elimination of overlapping statistical jurisdiction.
Successful results have been obtained in connection with current busi­
ness inquiries in the Department of Commerce, in statistics for the
electrical industries, accident statistics, construction and real-estate
data, and reports on relief and public assistance. In each instance
the Board has been instrumental in securing agreements whereby
information collected by certain Federal agencies might be made
available to other Departments, thus avoiding duplicate reporting of
essentially identical information.
At the request of the Director of the Census, the Board in 1934
began an investigation of the organizations and work of the several
divisions in the Bureau of the Census. On the basis of this survey,
the results of which became available in 1937, the Board was able to
make a series of recommendations for more efficient and economical
administrative procedure in the Bureau.
In line with its aim of improving the Government’s statistical out­
put, the Board has cooperated closely with the Civil Service Com­
mission in developing improved civil-service examination procedures.
These and many other similar activities illustrate the importance
of the Central Statistical Board as a coordinating agency. Although
the Board’s appropriation for the coming year has been reduced by 50
percent, the report concludes by stating that:
The Board will continue its regular review of questionnaires and plans for
statistical inquiries and its efforts to coordinate the statistical services in fields
where there is overlapping administrative responsibility.
It is unavoidable th at the reduction in budget will materially impair the
Board’s efforts to coordinate Federal statistical activities, to prevent duplication,
and to plan improvements in Government statistics during the coming fiscal year.


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

Cost o f Living

•CHANGES IN COST OF LIVING IN THE UNITED
STATES, DECEMBER 1937
THE cost of living for families of wage earners and lower-salaried
workers in 32 large cities of the United States dropped 0.6 percent
during the quarter ending December 15, 1937. This decline reflected
markedly lower food costs which more than counterbalanced net
increases in the cost of most other items of family expenditure.
The Bureau of Labor Statistics index of the cost of all goods pur­
chased by wage earners and lower-salaried workers in the 32 cities
combined is 84.5, as of December 15, 1937, as compared with 85.0 on
September 15, 1937, using average costs in 1923-25 as 100. Costs in
December 1937 were 2.5 percent higher than a year before, 13.4 per­
cent higher than at the low point in June 1933, but 15.2 percent lower
than in December 1929.
The net decrease in average costs reflected declines in total costs in
all but five cities. One city, Boston, reported a drop of more than
2 percent in total costs. Of the five cities reporting increases, the
largest rise occurred in Detroit, 1.1 percent, due to advances in the cost
of all groups of items except food, and particularly to a steep rise in
rents.
The average food costs, in the cities covered by the Bureau of Labor
Statistics, were 3.7 percent lower on December 15, 1937, than on
September 15. A net decline over the quarter was reported in each
of the cities for which indexes of total costs are prepared. Atlanta
reported costs in December 7.1 percent below September, Birmingham
6.9, Boston 6.3, and Kansas City and Richmond 5.7 percent. Five
other cities widely scattered throughout the country showed declines of
more than 5 percent. The smallest change noted was in San Fran­
cisco, where costs were 0.8 percent lower at the end than at the begin­
ning of the quarter. The major factor in the decline was the sharp
drop in the price of meats.
Clothing costs in December were at approximately the same level
as in September. The rise in clothing costs which had been reported
in all cities for the four preceding reporting periods continued into this
quarter, but in many cities a break occurred before December 15.
Sixteen cities reported net increases in clothing costs over the quarter.
In each of the 16 cities for which the index shows declines, the drop
was less than 1 percent.
46585— 38
11
727

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

728

Monthly Labor Review—March 1938

Increases in rents occurred in 29 of the 32 cities, resulting in an
average rise, for the 32 cities, of 1.8 percent. Three reported large
increases as of October 1—Birmingham 11.5 percent and Detroit
and Memphis 6.7 percent. Rental levels in these cities, which de­
clined sharply before 1934, are still considerably below rentals in
1923-25. Taking average rents over the years 1923-25 as 100, the
index of rental costs on December 15, 1937, in Birmingham was 59.9,
in Memphis 63.3, and in Detroit 70.5. Negligible declines between
September 15 and December 15 were noted in three cities—Boston,
Scranton, and Washington.
A seasonal rise in fuel and light costs occurred in all but four cities.
The increase in most instances was due to the seasonal upturn in coal
prices. The largest rise was reported in Houston, where wood prices
registered a sharp increase. Jacksonville reported a decrease of 2.1
percent in fuel and light costs, due to declines in the cost of both wood
and kerosene.
Average costs of housefurnishing goods increased 0.9 percent, as a
result of advances in 28 of the 32 cities. Three cities reported increases
of more than 2 percent, Detroit (2.4) and Houston and San Francisco
(2.1 percent each). Slight decreases were reported in four cities.
Prices of miscellaneous items showed little change in most of
the cities. Increases occurred in 24 cities, decreases in 7, and no
change in 1, resulting in a net increase of 0.6 percent for the com­
bined cities. Two cities reported advances of more than 2 percent.
In Detroit, the rise of 3.0 percent was largely the result of an increase
in admission prices to movies, although the cost of laundry and of
barbers’ services also increased; in Cleveland, an increase of 2.5
percent was due mainly to increased street car fares. All declines
reported were slight.
Percentage changes in the cost of goods purchased by wage earners
and lower-salaried workers in 32 large cities of the United States, from
September 15 to December 15, 1937, are shown in table 1.


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

Cost of Living
T

able

729

1.— Percentage Changes from September 15, 1937, to December 15, 1937, in Cost of
Goods Purchased by Wage Earners and Lower-Salaried Workers
C ity

A ll item s

Food

Average: 32 large c i t ie s ..............

- 0 .6

1 -3 .7

N e w England:
B o sto n . _ ____ ____ ______
Portland, M a in e __________

- 2 .3
- 1 .5

M id d le A tlantic:
B uffalo.......................................
N ew Y ork ________________
P h ila d elp h ia -..........................
P ittsb u rgh ________________
S cra n ton .____ ____________

Clothing

R ent

F u el and
light

Housefurnish­
ing goodls

0

+ 1 .8

+ 1 .5

+ 0 .9

- 6 .3
- 4 .7

-0 .2
+ .4

(2)
+ .4

+ 2 .7
- .2

+ .5
+ .3

+ .1
- .2
- 1 .3
- 1 .6
- 1 .5

- 1 .1
- 1 .8
- 5 .0
- 4 .5
- 5 .2

+ .1
-.5
+ .1
- 1 .0
-.5

+ .9
+ 1 .0
+ 1 .1
(3)
- .1

+ .6
+ 1 .4
+ .9
(3)
+ 3 .1

+ 1 .6
+ .9
+ 1 .1
-.7
+ .7

E a st N orth Central:
C hicago. _________________
C in cin n ati................................
C levelan d _________________
D etro it___________________
Ind ianap olis_______ ____ _

-.5
-.9
+ .2
+ 1.1
- .6

- 3 .9
- 4 .4
- 3 .5
- 4 .5
- 3 .7

+ .5
+ .5
-.5
+ 1 .1
+ .4

+ 3 .0
+ 3 .0
+ 6 .7
+ 2 .4

+ 1 .9
+ 2 .3
(3)
+ 2 .6
+ 1 .6

+ 1 .1
+ .2
- .6
+ 2 .4
+ .6

W est N orth Central:
K ansas C ity ______________
M inn eap olis______________
S t. L ouis__________________

- 1 .6
- .1
- 1 .2

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

- .2
-.4
(3)

+ 2 .0
+ .9
+ .6

+ 1 .0
+ .2
+ 1 .2

+ 1 .2
+ .3
+ .4

South Atlantic:
A tla n ta ___________________
B a ltim o r e ...................... .........
Jacksonville____ __________
N orfolk ___________________
R ich m on d ________________
S avannah_________________
W ashington, D . C ________

- 1 .9
-.6
-.5
- .7
- 1 .7
- .6
- 1 .0

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

+ .5
+ .6
- .4
- .5
+ .3
-.3
+ .6

+ .6
+ 1 .8
+ 2 .9
+ 3 .0
+ .1
+ 4 .7
-. 1

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

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

E a st South Central:
B irm in gham ___________ .
M em p h is................... ...............
M ob ile_______________ ____

- .7
+ .1
- 1 .1

- 6 .9
- 3 .3
- 5 .3

- .9
(2)
(2)

+ 1 1 .5
+ 6 .7
+ 4 .0

+ 2 .0
-.2
+ 2 .3

- .5
+ .6
+ .1

W est South Central:
H o u sto n ____ _____________
N ew Orleans. __________ .

- .1
- .9

- 2 .7
- 3 .5

+ .5
+ .3

+ .9
+ 1 .0

+ 7 .4
+ 1 .0

+ 2 .1
+ 1 .0

M ountain:
D en v er___________________

- .5

- 2 .2

-.5

+ 1 .2

+ .4

+ .6

Pacific:
L os A ngeles_______________
Portland, Oreg_______ . . .
San Francisco_____________
S eattle- _______ __________

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

- 5 .0
- 3 .9
- .8
- 3 .3

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

+ 2 .4
+ .7
+ .8
+ .6

-.1
+ .2
+ 1 .0
+ 3 .3

+ 1 .4
+ 1 .1
+ 2 .1
+ .5

M iscel­
laneous

+ 0 .6
- .6
(3)
+ .4
+ .6
+ .3
(3)
+ .2
(2)

+ .7
+2. 5
+ 3 .0
(2)
- .3
+ .2
+ .1
0
+ .2
(3)
0
0

-.1

+ 1 .8
+ .5

0
0
+ .5
+ .2
0
+ 1 .4
+ .1
+ 1.9
+ 1 .2

1 Covers 51 cities.
1 D ecrease of less th an 0.05 percent.
* Increase of less th an 0.05 percent.
4 N o change.

Percentage changes in the cost of goods purchased by wage earners
and lower-salaried workers from a peak point in June 1920, from
December 1929, from the low point June 1933, and from December 15,
1936, to December 15, 1937, in 32 cities, are presented in table 2.


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

Monthly Labor Review—March 1938

730
T

able

2.— Percentage Change in Cost of All Goods Purchased by Wage Earners and
Lower-Salaried Workers for Specified Periods
Percent of decrease
from—
City

Percent of increase
from—

June 1920
to
Dec. 15,
1937

December
1929 to
Dec. 15,
1937

June 1933
to
Dec. 15,
1937

Dec. 15,
1936, to
Dec. 15,
1937

30.3

15.2

13.4

2.5

New England:
Boston______ _____ ___________ _____________
Portland, M aine_______ ______ _______________

30.7
31.3

16.6
14.0

10.3
9.9

1.4
.7

Middle Atlantic:
Buffalo____ __________________ ______________
New York______________________________ ____
Philadelphia________________________________
Pittsburgh________________________ -- ______
Scranton____ _______________ ________ ______

28.6
26.9
30.0
30.6
31.8

14.9
14. S
16.7
16.7
18.4

12.9
10.7
11.0
14.0
9.4

3.2
2.6
.8
3.3
i 1.0

East North Central:
Chicago.......... ........... ........... ................. .................
Cincinnati......... ........... .................................... ..........
Cleveland______ _________________ __________
Detroit__________________________________ --Indianapolis______________ __________________

30.9
29.7
27.8
34.4
34.8

18.9
15.4
11.0
14.0
15.5

14.3
12.8
15.8
26.8
13.9

3.0
2.5
3.8
5.6
2.0

West North Central:
Kansas City........................................... .........- ..........
Minneapolis___________ . __________ _ ------St. Louis.____ ______________ _________ ______

36.3
29.9
32.0

13.8
13.2
16.6

10.2
15.1
12.8

1.4
1.5
2.2

South Atlantic:
Atlanta_____________________________________
Baltim ore...____ ___________________________
Jacksonville ...•.________________ _____ ___ ___
Norfolk____ ___________________________ ____
Richmond___________________ ____________ Savannah _____________________ ___________
Washington, D. C____ ______________ _ . _____

37.1
27.4
34.0
34.0
32.2
36. 1
27.5

15.5
12.8
14.7
14. 1
13.4
16.3
10.2

15.4
12.8
15.1
13.8
12.9
10.9
13.7

1.3
1.5
2.0
.8
i .6
2. 1
1.4

East South Central:
Birmingham________________________________
Memphis__________________ ________________
Mobile—______________ ____ _________________

37.7
32.9
34.0

17.8
14.2
17.2

17.5
13.4
12.4

3.4
1.8
2.5

Wrest South Central:
Houston____________________________________
New Orleans_____________ ________________

32. 1
28.0

14.9
14.6

17.2
12.0

2.4
1.7

Mountain:
Denver_________ __________ _____________ ____

31.8

11.7

14.6

2.7

Pacific:
Los Angeles______ __________ .. . _______
Portland, O reg ______________________________
San Francisco_______ _______________ ______
Seattle______________ _______________ ______

28.6
33.3
24.6
29.6

15.7
11.2
11. 1
11.2

13.5
17.0
13.4
13.2

2.8
3. 1
5.1
4.4

Average: 32 large cities___

____

______________

>Decrease.

Indexes on 1923-25 Base
Indexes of the average cost of goods purchased by families of wage
earners and lower-salaried workers are constructed for each of the 32
cities surveyed and for these cities combined, using an average of the
years 1923-25 as the base. These indexes, from 1913 through Decem­
ber 15, 1937, for the 32 cities combined, are shown in table 3. The
accompanying chart presents these data in graphic form.
The cost-of-living indexes presented here show changes in the cost
of goods purchased by wage earners and lower-salaried workers from
time to time in each of the 32 large cities covered by the Bureau of

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

Cost of Living

731

Labor Statistics, but they do not measure differences in the cost of
these goods from city to city. There are serious technical difficulties
in determining the cost of the same level of living from one part of
the country to another. No satisfactory techniques have been
developed for measuring differences in such costs from large to small
cities or from cities to rural communities. In large cities with similar
climate, comparisons are possible with the use of standard specifica­
tions, but such studies, because of their great expense, are beyond
the present resources of this Bureau.
In pricing for the Bureau’s indexes, the type of goods priced has
been varied from city to city in conformity with the purchasing habits
of moderate-income families in each city where prices are secured.
Accordingly, although in any one city the kind and quality of goods
priced are held constant from year to year insofar as possible, dif­
ferences between the indexes of the various cities at any particular
date are due entirely to differences in the rate of change of living costs
in each city. Similarly, the differences in the average costs from which
the indexes are computed in different cities may be due to varying
standards and purchasing habits in these cities as well as to varying
prices for goods of given grades.
Thus, even though these series furnish no information as to differ­
ences in absolute cost in dollars among the 32 cities, the indexes for
the various cities may be used to indicate comparative rate of change
in the cost of goods purchased by families of wage earners and lowersalaried workers. For example, the index of the cost of all items
purchased by this group was 79.0 for Birmingham in December 1937,
on the 1923—
25 base; that for San Francisco was 89.1. In other words,
in September 1937 costs in Birmingham were considerably lower, as
compared with 1923-25 costs in that city, than were costs in San
Francisco, as compared with 1923-25 costs in the latter city.
The indexes are constructed by pricing, from time to time, a list
of the goods most important in the spending of families of wage
earners and lower-salaried workers, as shown by the Bureau’s study
of the expenditures of 12,096 families in 1917-19.1 In the construc­
tion of the index, price changes, noted from period to period, are
weighted according to the importance of these items in family spend­
ing, as shown by that study. A new Nation-wide study, now under
way, will provide weights more nearly approximating present-day
consumption. The field work for this study is completed, and the
data secured are now being tabulated and analyzed.
Pending this basic revision in weights, several important revisions
in method have been incorporated in the indexes beginning with the
March 15, 1935, period. The food and all-items indexes, as well as
the indexes for the 32 cities combined, have been revised back to the
i The results of this study were published in the Bureau’s Bull. N . 35 .


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

O
O
o P
ÌN
D
3 8
,_p,'^C
D

CO
C
D
C-t- P "1

l-j
<J

¡2 . ®

c+- .

CD

oD
C
C
D
C
D
3
o“
C
D

C
DB'
‘gP.gC
.
D
P X
P*
®3
P 0
oq
P

C
D

o

C
t
0D
3 <
pr
i—
* >-+»
C
D
a
P-' ^C
D

P P
Co O

03

M- O'

B
C
D
0c+
3C
D
P
¡3
i-jDC
iD
C
P i £+■

C+- d“1
r g.
cO
-too
P♦—
3<p
CD eh
cl- P

r r
g 8

hi P 3

C
D
0D
3 SC
2P h
Pd
^ tP
P

M& »

C
D

►O P->

jr§ ’
5*
C
Di»

CP

e -t- '" d

C
PD^

1 H
& tf

P cr

Monthly Labor Review—March 1938

2 For details of this revision, see the article which appeared in the September 1935 M onthly Labor Review:
Revision of Index of Cost of Goods Purchased by Wage Earners and Lower-Salaried Workers.


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

733

Cost of Living

year 1935, they cover 84 articles, instead of 42 as in the past. For all
goods and services other than food and fuel and light, prices have
been secured in 32 cities. Prices of the items included in the food and
fuel and light indexes are obtained by mail, all others by personal
visits of representatives of the Bureau.
T able 3.— Indexes of Cost of Goods Purchased by Wage Earners and Lower-Salaried

Workers in 32 Large Cities Combined, 1913 Through Dec. 15, 1937
[Average 1923-25=100]

Date

HouseFuel and furnish­
light
ing goods

Miscel­
laneous

All items

Food 1

Clothing

1913—Average.............................
1914—December.........................
1915—December..........................
1916—December.........................
1917—December..........................
1918—December..........................

57.4
58.9
60.1
66.9
79.4
95.8

63.1
66.3
66.3
79.5
99.1
118.2

55.7
56.3
58.3
66.9
83.1
118.9

61.4
61.4
62.3
62.8
61.5
64.7

53.9
54.5
54.5
58.5
66.9
78.7

47.7
49.6
52.8
61.0
71.8
97.8

50.1
51.6
53.9
56.8
70.4
31.9

1919—June..................................
December..........................
1920—June...... ............................
December................. ........
1921—M a y ................................
Septem ber............. ..........
December............. ...........

98.2
109.8
121.2
112.2
102.8
101.7
100.3

117.3
126.4
146.1
115.7
95.8
102.1
99.7

128.8
159.5
168.6
151.0
129.8
112.2
107.2

67.3
73.1
79.4
87.5
92.7
93.3
94.8

77.8
82.6
91.3
103.7
98.4
98.2
99.1

104.0
123.0
137.0
132.8
114.3
103.2
100.4

84.3
92.9
99.2
103.2
103.2
102.5
102.0

1922—M a rch ............................ .
June...................................
September....................... .
December..........................
1923—M arch....................... ........
June....................... ..........
September.............. ..........
December..........................

96.8
97.0
96.4
97.7
97.6
2 98. 7
2 99.9
100.2

93.5
95.6
93.3
96.7
94.6
»97.7
» 100.0
99.5

102.4
100.4
99.3
99.4
100.8
101.1
101.9
101.8

94.6
95.0
95.2
95.8
96.3
97.3
98.2
99.7

96.3
95.9
100.9
102.2
101.5
98.7
99.8
101.1

95.0
93.2
93.4
96.3
100.7
102.8
102.9
102.9

10U.4
99.5
99.2
98.9
99.0
99.1
99.6
100.0

1924—M arch..................... .........
J u n e .................................
September........................
December.........................
1925—June................... ..............
December..... ....................

99.0
98.9
99.2
100.0
101.4
104.0

95.9
96.0
97.3
99.5
104.2
111.1

101.5
100.6
99.5
98.9
98.5
97.9

100.2
101.3
101.4
101.7
101.4
101.3

99.9
97.6
98.9
99.5
97.9
105.8

102.1
99.4
98.6
99.1
97.9
97.8

99.7
.99.8
99.8
100.2
100.8
101.1

1926—June................... ...........
December_____________
1927—June...................................
December.................. ......
1928—J u n e ............... ................
December............... ..........

102.5
102 3
101.9
100.4
99.2
99.4

108.9
108 1
108.7
104.7
102.5
103.2

97.1
96.2
95.3
94.0
93.8
93.3

100.4
100 0
99.0
97.9
96.5
95.5

100.0
103 4
99.4
100.6
97.7
99.7

95.8
94.7
93.4
93.0
91.1
90.5

101.0
101.4
101.7
102 1
102.1
102.8

1929—June...................................
December.___ ________
1930—Ju n e .................................
December..... ................ .
1931—June..................................
December-.......................

99.1
99.6
97.7
93.8
88.3
85.1

103.7
105. 7
101.2
92.1
80.6
76.2

92.8
92.2
91.5
88.1
83.4
77.6

94.3
93.3
92.0
90.1
87.3
83.9

97.0
99.1
95.9
98.1
93.7
95.3

90.2
89.9
88.8
85.1
79.3
74.9

103.0
103.4
103.7
103.4
102.8
101.8

1932—June........................ .........
December..........................
1933—June........... ...... ................
December........................ .
1934—June...................................
Nov. 15......... ...................

79.7
76.6
74.5
77.2
78.4
79.1

67.6
64.7
64.9
69.6
73.4
75.3

73.5
69.5
68.4
76.2
77.9
77.8

78.5
72.7
66.8
63 9
62.7
62.7

88.8
89.8
84.9
90.0
87.7
89.0

68.4
65.6
65.8
73.5
75.0
75.5

100.4
98.8
96.4
96.3
96.6
96.7

1935—Mar. 1 5 ...........................
July 15...............................
Oct. 15...............................
1936—Jan. 15...............................
Apr. 15...............................
July 15..............................
Sept. 15..............................
Dec. 15..............................
1937—Mar. 15..............................
June 15..............................
Sept. 15.............................
Dec. 15_______________

80.6
80.4
80.7
81.3
80.6
82.0
82.4
82.4
83.8
84.5
85.0
84.5

79.8
80.2
80.2
81.6
79.4
84.0
84.3
82.9
85.4
86.3
85.8
82.6

78.0
77.8
78.0
78.3
78.6
78.4
78.6
79.6
80.9
82.1
84.0
84.0

62.6
62.7
63.3
63.5
63.7
64.2
64.6
65.4
65.9
67.5
68.1
69.3

89.3
84.9
87.7
88.3
88.0
86.1
87.4
87.8
88.1
84.9
86.0
87.3

76.0
76.2
77.0
77.0
77.3
77.5
78.2
79.2
83.1
85.1
86.7
87.5

96.8
96.7
96.6
96.6
96.5
96.4
96.5
96.8
97.3
97.7
98.1
98.6

i Covers SI cities since June 1920.


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

Rent

* Corrected figure.

734

Monthly Labor Review—March 1938

The indexes of the cost of goods purchased by wage earners and
lower-salaried workers prepared by the Bureau of Labor Statistics
show relative costs as of particular dates. For various purposes,
however, it is often necessary to have estimates of annual average
indexes. These estimates are, therefore, presented in table 4, for 32
cities combined, from 1913 through 1937. The annual average
indexes have been computed as follows: The annual average food
index is an average of the indexes falling within each year; the annual
average indexes for clothing, rent, fuel and light, housefurnishing
goods, and miscellaneous items are indexes of the weighted average
of the aggregates for each pricing period affecting the year, the
weights representing the relative importance of each pricing period.
When these goods were priced only twice a year, in June and again
in December, it is evident that prices in December of the previous
year were more indicative of prices in the next month, January, even
though it fell in a new year, than were the prices of the succeeding
June; Therefore, costs in December of the preceding year and in
June and December of the given year are all considered in arriving
at an average cost for the year. The relative importance of each of
these costs is expressed for December of the previous year by 2%; for
June of the given year by 6; and for December of the given year
by 3y2. Weights for years in which pricing was done at other intervals
will be furnished on request.
T able 4.— Estimated

1

Annual Average Indexes of Cost of Goods Purchased by Wage
Earners and Lower-Salaried Workers in 32 Large Cities Combined, 1913 Through 1937
[Average 1923-25=1001
Year

1913_______________________
1914_______________________
1915_______________________
1916___________________
1917........................ ......................
1918_______________________
1919_______________________
192Q_______________________
1921___________ ___________
1922............ ......... ......... .............
1923___ ___________________
1924_________________ _____
1925___________ ___________
1926___ _____ _______ ______
1927........ ............ .......................
1928_______________________
1929_______________________
1930________ ____ __________
1931____________ ___________
1932....... ............................. ........
1933_______________________
1934_______________________
1935_______________________
1936_______________________
1937 4______________________

All items
57.4
3 58.2
3 58.8
3 63. 2
3 74.4
3 87. 2
101.1
116.2
103.6
97.2
99.0
99.2
101.8
102.6
100.6
99.5
99.5
97.0
88.6
79.8
75.8
78.6
80.7
81.6
84.3

Pood

2

63.1
3 64.6
3 63.9
3 71. 7
3 92.4
3 106. 2
120.2
133.1
101. 6
95.0
97.9
96.9
105.0
108.5
104.5
103.3
104.7
99.6
82.0
68.3
66.4
74.1
80.5
82.1
85.1

Clothing
55.7
56.1
57.4
62.9
75.6
102.5
135.7
161.6
124.4
101.0
101.2
100.4
98.4
97.0
95.1
93.7
92.7
90.7
82.7
73.2
70.9
77.5
77.9
78.7
82.4

Rent
61.4
61.4
61.9
62.6
62.1
63.2
68.4
80.4
92.4
95.1
97.5
101.0
101.5
100.5
98.9
96.5
94.3
91.7
86.9
78.0
67.2
62.9
62.9
64.2
67.4

HouseFuel and furnish­
light
ing goods
53.9
54.3
54. 5
56.6
63.0
73.3
79.4
93.1
99.3
98.6
100.3
99.1
100.6
102.2
100.6
98.9
98.2
97.2
95.1
90.4
87.4
88.6
87.5
87.5
86.6

47.7
49.0
51.3
57.2
66.9
85.9
108.2
132.8
111.8
94.8
101.8
100.1
98.1
95.9
93.6
91.3
90.2
87.9
79.2
68.9
68.0
74.9
76.4
77.8
84.9

Miscel­
laneous
50.
51.
52.
55.
64.
76.
86.
99.
102.
99.
99.
99.'
100.
101.
101.
102.
103.
103.
102.
100.
97.
96.
96.
96.
97.

i ilFor explanation of method used, see above.
1 2 Covers 51 cities since June 1920.
3 A correction of clerical errors whidisappeared in the Monthly Labor Reviews for August and October
1937.
4 Preliminary


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

Cost of Living

735

Table 5 presents December 15, 1937, indexes of living costs for
families of wage earners and lower-salaried workers based on average
costs in the years 1923-25 as 100, for each of the 32 cities, by groups
of items.
T able 5.— Indexes of Cost: of Goods Purchased by Wage Earners and Lower-Salaried

Workers, by Groups of Items, December 15, 1937
[Average 1923-25=100]
City

All
items

Food

Clothing

Rent

HouseFuel and furnish­
light
ing goods

Miscel­
laneous

Average: 32 large cities..........

84.5

>82.6

84.0

69.3

87.3

87.5

98.6

New England:
Boston____________ _____
Portland, M aine.................

84.5
86.4

78.7
81.4

88.6
83.5

75.7
76.3

85.1
82.8

86.4
93.2

99.0
103.7

Middle Atlantic:
Buffalo___ _______
New York___ . . . . .
Philadelphia____________
Pittsburgh_____ ______
Scranton____________ . . .

86.5
86.5
83.2
83.5
82.9

81.8
86.0
83.9
81.1
77.0

83.4
82.9
78.8
82.2
84.4

73.8
77.1
68.7
69.2
73.0

98.1
86.5
81.0
101.0
76.8

97.6
81.6
86.0
86.7
93.7

99.5
99.2
95.7
96.4
97.2

East North Central:
Chicago........... ............ .
Cincinnati_________
Cleveland______________
Detroit_______________ _
Indianapolis____________

80.8
88.3
87.0
83.3
83.1

84.2
83.3
81.9
82.5
81.6

77.2
84.0
87.0
85.3
82.3

58.1
77.6
70.2
70.5
66.1

92.3
98.0
100.4
79.2
85.3

78.5
97.1
84.4
86.9
91.3

100.9
101.6
104.4
96.4
93.6

West North Central:
Kansas City___ _________
Minneapolis____________
St. Louis___________ ____

83.2
85.9
84.8

82.0
87.1
86.3

83.1
81.8
84.8

61.8
71.2
58.5

84.5
91.1
88.6

82.4
91.3
92.6

99.8
97.6
102.2

South Atlantic:
A tlanta____________ ..
Baltimore. _____________
Jacksonville____ . . . . ..
Norfolk_____________ .
Richmond_________ .
Savannah_____ ____
Washington, D. C _______

82.3
87.7
82.0
86.3
85.4
82.8
88.8

76.6
86.1
79.4
79.8
76.0
80.8
83.6

87.6
83.8
84.2
90.6
92.1
87.3
85.3

65.7
76.1
59.9
64.6
72.9
63.7
88.1

75.6
81.2
89.0
81.9
82.0
85.4
84.2

93.9
87.7
85.4
89.5
96.5
91. 2
92.8

94.8
104.8
93.0
104.0
99.6
92.3
100.4

East South Central:
Birmingham____________
Memphis_______________
Mobile_________________

79.0
82.9
84.1

72.8
78.6
76.6

90.3
89.7
90.6

59.9
63.3
66.7

83.1
88.4
72.5

83.2
96.7
92.7

92.2
94.9
99.6

West South Central:
Houston._______________
New Orleans_____ ______

83.9
84.4

80.4
84.2

79.7
83.7

73.0
72.2

79.3
77.3

97.4
98.4

95.1
91.8

Mountain:
Denver___________ ____ _

85.4

87.8

80.3

64.4

78.1

94.0

100.5

Pacific:
Los Angeles_____________
Portland, Oreg_____ ____
San Francisco___________
Seattle_________ _______

79.2
85.0
89.1
88.5

74.9
82.3
85.1
81.5

87.6
83.6
94.9
91.8

55.0
62.4
73.0
71.2

82.2
86.9
80.2
98.1

83.9
86.9
91.9
94.5

94.2
101.9
104.2
101.1

1 Covers 51 cities.

Table 6 presents indexes of the cost of all goods purchased by wage
earners and lower-salaried workers in each of the 32 cities, for each
date from June 1926 through December 15,1937, on the 1923-25 base.
Indexes by groups of items for each of the 32 cities for the corres­
ponding dates are presented in the Bureau’s pamphlet, “Changes in
Cost of Living, December 15, 1937.”

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

Monthly Labor Review—March 1938

736
T

able

6 . — Indexes

of Cost of All Goods, Purchased by Wage Earners and Lower-Salaried
Workers in Each of 32 Large Cities, June 1926 Through Dec. 15, 1937
[Average 1923-25=100]
East
North
Central

Middle Atlantic

New England
Date

Nov. 15____________
1935—Mar. 15.— _______
Oct. 15................. ........
1936—Jan. 15- _________
July 15 .

______

Dee. 15_____________
1937—Mar. 15____________
Dec. 15 ___

______

Boston

Port­
land,
Maine

Buffalo

102.5
103.5
101.9
102.2
99. 5
100.9

102.0
101.8
101.7
100.4
98.9
100.0

104.6
103.7
103.3
101.7
101.5
101.0

102.4
102.7
101.8
102. 5
100.3
101.1

104.8
104. 5
103.3
102. 2
101.0
99.6

103.6
103.2
103.0
101.3
99.9
101.0

104. 1
103.8
103.5
102.4
101.7
101.9

102.9
102. 9
102.6
100.2
99.0
99.3

99. 6
101.4
98. 7
95.9
89.4
87. 2

99.7
100. 4
98.4
95.4
90.9
88. 1

101.3
101.7
100.3
95.6
90. 0
85. 7

100.7
101.5
98.8
96.5
91. 2
88. 1

99.2
99.9
97.6
94.3
89.7
86.3

100.8
100. 2
98.6
93.8
88.4
84.7

101.4
101. 6
99.0
95. 2
88.7
85.5

98.9
99.7
97.8
93. 5
88.0
84.4

80. 5
78.0
76. 6
79. 7
81.3
82.0
82.9
82.7
82.9
83. 0
82.6
84. 2
83.5
83.3
84. 2
85. 1
86. 5
84.5

83.5
79. 9
78.6
82.5
83.6
84.4
84.6
85.3
85. 0
85.3
84.7
86.5
85.7
85.8
86.6
87.6
87.7
86.4

82.3
78.4
76.6
78.8
80.2
79.9
81.6
82.0
81.6
82.5
81.8
84. 1
83.3
83.8
84.9
87. 1
86.4
86.5

84. 2
81.0
78. 1
80.5
81.8
82. 1
83.6
83. 1
83.4
84.2
83.0
83.8
84.4
84.3
85. 1
84.9
86.7
86.5

80.4
76.8
74.9
78.4
79.9
79.6
80.4
80.4
80.9
81.9
81.3
82. 1
82.1
82.5
83.4
84.0
84.3
83.2

78.7
76.0
73.2
76.0
77.7
77.8
79.2
79. 1
79.6
79.9
79. 1
80.7
80.8
80.8
82. 1
84.6
84.9
83.5

80. 1
78.0
75.8
80.0
80.8
80.6
81.9
82. 1
82.8
83. 2
81.8
83. 2
83. 2
83.7
84.0
84.9
84. 2
82.9

77. 1
73.4
70.7
72.4
72.7
73.5
76.2
76.0
76.1
76.7
76.2
77.6
78.4
78.5
80.0
81. 2
81.3
80.8

New
York

East North Central—Continued
Date

Cincin­
nati

December________ .

December _

D ecember...

...

____

1932—June___________ . ..
December__________

1935—Mar. 15....
Oct. 15_____________
1936—Jan. 1 5 ____________
Apr. 15.___ ________
Sept. 15. . _________
Dec. 15_____________
1937—Mar. 15____ ______
Sept. 15. ______ . . .
Dec. 15_____________


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

105.4
104.6
106. 5
102.3
102.8
102.0
103.4
104.4
103.0
98.8
92.8
89.3
82.9
79. 7
78.3
80. 5
81. 7
82. 2
85. 1
84.0
84.5
85.2
84.3
87.2
87.4
86. 2
88.6
89. 0
89. 1
88.3

Cleve­
land
102.6
101.8
102.0
99.4
99. 2
98. 1
98.6
97.8
97.8
93.3
87.3
84.3
80.5
76.4
75.2
77.2
78.6
78.8
81.3
81.4
81.5
81.7
81. 7
83.4
84.3
83.8
85.4
86.5
86.9
87.0

Detroit Indian­
apolis
101.4
100.4
100.6
97.5
96. 2
96.3
97.1
96.9
94. 6
88.3
82.4
77. 2
71.6
67.9
65. 7
69. 1
71.5
71.9
74. 2
75. 1
75.9
76. 7
77.0
78.9
79. 0
78.8
80.9
82.5
82.3
83.3

101.9
101.2
102.3
98.4
98.0
97.4
97.4
98.4
97. 1
91.9
85.3
81.7
77.0
73.9
73. 0
75.5
77. 0
76.5
78.9
78.8
79. 1
79.8
79.2
81.4
81.8
81. 5
83.5
84. 5
83.6
83.1

Phila­
delphia

Pitts­
burgh Scranton Chicago

' Ï I West North Central
Kansas
City

Minne­
apolis

101.5
99.6
99.5
96.1
96.2
95.6
95.5
96.5
95. 1
92.6
88.9
85. 1
79.0
76.9
75.5
76.7
77.9
79.2
80.4
79.5
80. 1
80.2
79.6
81.9
82.9
82.0
84. 1
85.3
84.5
83.2

102. 5
100.9
101.1
98.2
98.5
97.6
97.9
99.0
98.0
94.0
89.6
86.6
80.9
78.2
74.6
78.2
79.2
79.6
81.3
81.5
81.3
82.6
81.8
83.9
84.5
84.7
86.8
86.6
86.0
85.9

St.
Louis
104.2
103.7
104. 1
100.8
100.2
99.8
100.8
101.6
99.5
94. 7
88.5
84.0
79. 5
76.4
75. 1
77.0
78.7
79.4
81.4
81.6
81.2
82. 1
81.4
82.8
83.8
82.9
84.7
85.4
85.8
84.8

South
Atlantic
Atlanta
102.7
100.9
103.1
98.1
99.0
98.7
97.6
97.4
94.0
89.9
84.4
79.8
75.9
71.9
71.3
74.7
75.8
77.1
78.4
78.3
79.6
79.9
79.0
80.6
81.5
81.3
82.4
83.0
83.9
82.3

737

Cost of Living

T able 6.— Indexes of Cost of All Goods Purchased by Wage Earners and Lower-Salaried

Workers in Each of 32 Large Cities, June 1926 Through Dec. 15, 1937—Continued
East South
Central

South Atlantic—Continued
Date
Balti­
more

Jackson­
ville

Nor­
folk

Rich­
mond

Savan­
nah

Wash­
Mem­
ington. Birming­
ham
phis
D. C.

1926—June
. ______ _ .
December_______ . . .
___
1927—June__ __
December_____ _ . . .
1928—June..............- - _ _
December.....................

103.4
102.5
102.1
100.1
100.1
99.1

109.0
107.7
104.8
102.0
98.7
98.2

101.7
101.4
102.3
100.3
99.6
99.9

104.7
102.9
103.0
99.7
100.0
98.5

102.4
101.6
101.1
100.0
99.2
99.8

103.2
102.5
100.5
99.5
99.1
98.6

103.0
102.1
100. 7
100.0
98.2
97.5

100.8
100.0
99.9
97.1
96.5
97.0

1929—June_______________

99.7
100.5
99.5
95.8
90.8
87.9

97.2
96.1
94.1
90.6
85.4
81.2

99.7
100.6
98.8
95.4
89.8
86.2

97.7
98.6
98.1
93.5
88.2
85.6

99.0
98.9
96.9
93.2
89.3
84.3

99.0
98.9
97.4
94.7
89.6
87.0

96.9
96.1
94.2
89.3
80.7
76.9

97.1
96.7
96.0
91.3
85.3
82.1

82.7
79.9
77.7
81.4
82.0
82.9
83.9
84.5
84.9

76.3
73.5
71.3
75.5
76.6
77.2
77.8
78.6
78.9

81.2
78.7
75.9
80.9
82.5
82.9
83.7
83.3
84.1

80.3
77.1
75.7
79.9
80.9
81.7
82.9
82.7
83.6

79.1
76.7
74.6
78.3
78.9
79.4
80.0
80.2
81.2

82.0
79.1
78.1
81.8
83.0
83.9
85.?
85.6
86.3

70.9
68.5
67.2
70.2
71.0
73.4
73.6
74.1
75.3

77.0
73.8
73.1
76.1
77.0
78.8
79.5
78.6
78.7

85.6
85.0
86.0
86.4
86.4
87.0
87.4
88.2
87.7

79.4
78.5
80.2
80.1
80.4
81.5
82. 1
82.4
82.0

84.9
83.7
84.8
85.2
85.7
86.5
86.8
86.9
86.3

83.6
82.8
84.3
85.5
86.0
86.5
86.3
86.9
85.4

81.2
79.4
80.7
81.0
81.1
81.8
82.5
83.3
82.8

86.7
85.5
87.0
87.4
87.6
87.8
88.7
89.7
88.8

75.0
73.9
76.0
76.5
76.4
78.7
79.6
79.5
79.0

79.4
79.3
80.5
81.1
81.5
82.8
83.0
82.9
82.9

1930—June.......................
D ecem ber___
___
1931—Ju n e... . . .
___

December ............ ......
1933—Ju n e ................. ......

1935—Mar. 15____ ________
July 15 ___ ______
Oct. 15.......... ..............
1936—Jan. 15

_________

July 15_____________
Sept. 15___ ________
Dec. 15_____________
1937—Mar. 15____________
Sept. 15___ ______ _
Dec. 15_____________

East
South
CentralContd.

Date

West South
Central

Moun­
tain

Pacific

Los
New
Denver Angeles
Mobile Houston Orleans
December ............ .

D ecem ber____

December _________
1934—June_______________
1935—Mar. 15____ ________
Oct. 15 ____________
1936—Jan. 15_________ ____
Sept. 15 ___________
1937—Mar. 15._____ ______
Sept. 15

________


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

103.8
104.0
103.6
102.4
101.4
101.8
101.0
101.6
99.9
95.5
88.9
85.3
79.1
77.0
74.9
79.2
79.1
81.0
82.2
81.7
82.1
81.7
81.0
82.7
82.2
82.1
84.2
84.9
85. 1
84.1

99.9
100.4
98.3
98.6
96.7
97.6
97.4
98.6
96.1
91.3
86.0
83.4
76.2
72.2
71.6
75.1
75.8
78.3
79.3
78.2
79.4
80.3
79.5
80.9
81.5
81.9
83.2
82.8
84.0
83.9

100.0
101.0
101.2
99.9
98.8
99.6
98.3
98.9
96.7
92.6
85.1
84.5
79.3
77.6
75.4
79.1
79.1
81.0
82.0
81.9
81.4
81.7
80.8
82.2
82.6
83.0
84.0
84.2
85.2
84.4

101.2
100. 2
100.7
96.4
95.9
96.3
96.6
96.7
95.5
91.1
86.5
82.9
78.2
75.5
74.5
76.1
77.8
79.0
81.2
81.2
80.8
81.5
81.1
83.0
83.4
83.1
85.0
85.9
85.8
85.4

96.7
96.9
97.0
95.5
93.8
95.1
94.1
94.0
91.7
88.1
82.4
80.7
75.5
73.1
69.8
72.5
72.1
74.2
75.5
74.6
74.8
75.4
74.7
75.2
76.3
77.1
79.8
79.4
79.5
79.2

Port­
land,
Oreg.
99.4
99.1
98.9
97.3
95.7
96.3
95.1
95.8
95.0
89.6
85.5
82.9
77.4
75.2
72.7
74.4
75.5
77.2
78.8
78.8
79.3
80.7
80.8
82.0
81.9
82. 5
85.0
85. 6
85.9
85. 0

San
Fran­
cisco
101.0
101.1
101.3
100.5
99.5
100.8
100.0
100.3
98.2
94.9
89.7
86.8
82.3
80.6
78.6
81.7
82.4
84.4
84.7
83.1
83.9
84.4
83.9
84.4
84. 7
84. 8
86. 7
87. 4
88. 5
89.1

Seattle
101,2
100.6
101.6
98.8
98.4
98.6
99.2
99.6
98.8
93.4
90.4
87.3
82.0
78.6
78.1
79.2
79.6
80.9
82.1
82.3
82.2
83.6
83.2
84.1
84.5
84.8
87.3
88.1
88.6
88.5

738

Monthly Labor Review—March 1938

COST OF LIVING IN FOREIGN COUNTRIES 1
THE principal index numbers of the cost of living (official and un­
official) published in the different countries are given in the following
table. Index numbers of the principal groups of expenditure (food,
heating and lighting, clothing, rent, etc.) which go to make up the
general index numbers will be found in the Year-Book of Labor
Statistics, 1937, published by the International Labor Office.
The original base of the indexes differs from country to country.
The table presented below gives the same index numbers recalculated
by the International Labor Office on the uniform base, 1929 = 100.
This change of base has been effected by simply dividing the index for
each date by the corresponding index for 1929 (annual average) and
multiplying the quotient by 100. This procedure may perhaps give
rise to some slight inaccuracies, owing to the methods by which many
of the indexes are compiled, but these errors are at most very slight,
except when the fluctuations of the indexes reach a certain amplitude.
For a few countries, where data for 1929 were not available, the year
nearest to 1929 has been taken as base; in these cases the figures are
printed in italics.
These index numbers, even when reduced to a common base, cannot
be used to compare the level of the cost of living in the different
countries, but only its fluctuations. But even the fluctuations of the
different index numbers are far from having the same significance,
owing to the numerous divergences in the methods of compilation of
the series (for example, the geographical scope of the indexes; the
groups represented in the general index and the articles included in
each group; the weights attached to the various articles and groups;
the statistical basis for the determination of these weights; the extent
to which they are representative of the consumption of more or less
extensive or clearly determined social classes and the date to which
they relate; the method of calculating average prices, group indexes,
and the general index, etc.). International comparisons cannot there­
fore be more than approximate.
1 Text and table from International Labor Review, Geneva, October 1937, p. 565, and January 1938, p.
118.


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

739

Cosi of Living

Indexes of Cost of Living for Specified Periods for the United States and Certain Foreign
Countries 1
[Series recalculated by International Labor Office on base 1929=100;2 a=food; 6=heating and lighting;
c=clothing; d=rent; e = miscellaneous]
Argen- Aus­ Aus­ Bel­ Brazil Bui- Can­ Chile
ada
una tralia tria gium
Towns and Buenos
localities--- Aires
Original base
(=100)------

Oct.
1933

Composition
of index___

a -e

1927 _______
1928 ______
1929 _______
1930________
1931 _______
1932 ______
1933......... ......
1934 _______
1935 ______
1936 _______
1937—Mar_ __
June__
Sept__

30

Viernia

1923- July
1914
27

a -e

97
98
100
95
85
81
78
80
81
83
6 84
6 85
«85

100
99
100
101
87
78
83
78
83
91
92
95
Q9

a -e

96
97
100
100
96
97
95
95
95
94
94
95
94
94

59

Riode
neiro

12-67

60

San- Pei- Shang- Tienhai
tsin
tiago ping

192829

1914

1926 Mar.
1928

1927

1920

1926

July
1914

July
1913

a -e

a -e

a -e

a -e

a -e

a -e

a -d

a -e

a -e

93
95
100
104
93
84
83
79
80
85
90
90
95
95

102
100
100
91
87
88
87
94
99
114
119

96
98
100
92
80
73
68
64
60
57
58
58
59

France

99
99
100
99
90
82
78
79
79
81
82
83
84

a -e

(3)
« 98
100
99
98
104
130
130
132
144
152
164
169

Cairo

Tal­
linn

21

Paris

Original base 1931
(=100)____

Jan.
1913July
1914

1913

Jan.June
1914

1914

July
1930 19131914 1914

Composition
of index___

a,

a-e

a -e

a-e

a -e

1927________
1928________
1929________
1930........ ......
1931 _______
1932________
1933________
1934 _______
1935 ......... .
1936 ______
1937—M a r....
J u n e ...
S e p t...

102
101
100
95
89
89
93
96
99
100
103
104
105

c -e

101
101
100
98
91
87
83
84
86
86
85
84
85

See footnotes at end of table.


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

90
96
100
89
86
80
75
74
75
84
88
89
89

45

92 (*)
93 e»)
100 (s)
100
105
102
97
91
95
94
87
85
93
87
78
91
86
» 97
' 85 « 104
* 86 6109 »99
• 89 ' 113 « 1046 118 U 10
99
101
100
92
85
84
82
80
81
81

94
95
100
103
90
86
76
75
81
94
105
98

99
95
100
113
117
no

99
98
99
105
108
no

137
155

91
95
100
103
98
91
80
78
86
98
108
104

Great
Briun­
Qer- tain
and Greece H
gary
N.
Ireland

100

a -e

DanZlg

1921

Den­ EevDt Esto- Fin­
land
mark

Towns and
localities__

Czecho­ Dan­
slovakia zig

China

72

509

44

100
101
« 100
98
93
92
91
90
92
93
94
95
95

98
99
100
95
88
80
77
76
85
93
97
98
98
98

India

Ah­ Ran­
Buda­ Bom­ med­
pest bay abad goon

Dec.
1914

1913

July
1914

Aug.
1926July
1927

1931

a -d

a -d

a -e

a -e

a-e

a-e

a -e

96
s 99
100
96
88
78
77
79
80
81
81
81
81
81

102
101
100
96
90
88
. 85
86
87
89
92
95
96
97

93
97
100
88
6 100
106
m
116
117
121

ISO
132
131
132

95
103
100
99
100
100
92
91
74
86
83
73
77
69
76
65
78 io 100
82
101
87 1 0 4
87
105
88 108
88 107

<102
99
100
90
77
78
74
73
73
73
75
78
79

G)
m

(3)
100
98
91
87
90
88
88
89
88

740

Monthly Labor Review—March 1938

Indexes of Cost of Living for Specified Periods for the United States and Certain Foreign
Countries

1—Continued

[Series recalculated by International Labor Office on base 1929 = 100;2 a = food; 6= heating and lighting;
c=clothing; d=ront; ^miscellaneous]
Irish
Country........ Free Italy
State
Towns and
localities__
Original base
(=100)___
Composition
of index___

105

50

13

Tokyo Riga

July June July
1914 1928 1914
a-e

1927________
99
1928________
99
1929________ 100
1930________
97
1931________
92
1932............
89
1933________
86
1934________
87
1935............ ..
89
1936________
91
1937—M a r.... 8 95
Ju n e ... 8 95
Sept__ « 97
Dec___ 8 101

a -e

a -e

100
98
100
97
87
83
80
76
77
83
87
92
95

0)
0)
0)
0)
4 98
100

Po­
land

Por­
tugal

July
1914
a,

103
106
110
113
116
117
119

War­ Whole
Towns and localities. saw coun­
try

Original base= (100).. 1928
Composition of in­
dex..................... .
1927_____________
1928.......... ................ .
1929.......... ........ ........
1930_________ _____
1931______________
1932______________
1933______________
1934______________
1935______________
1936______________
1937—March_______
J u n e ________
September___
December____

a -e

98
99
100
93
85
77
70
66
63
60
64
64
65
64

New
Lat­ Lith­ Lux­
N eth­ Nether­
em­ erlands
lands
Zea­
via uania burg
Indies land

Japan

c,

e

104
102
100
86
75
75
80
82
84
88
94
94
98
101

Amster­ Java
and
dam Madura

104

9

1930

1913

1914

Oct.
1923Sept.
1924

a -e

a -e

a-c, e

a -e

(3)
(3)
(3)
100
91
79
76
72
73
73
72
H
82

106
102
100
89
83
71
61
57
50
51
56
56
56

89
93
100
102
91
79
79
76
74
75
77
80
81
81

Nor­ Pal­ Peru
way estine

4-25

31

1913

19261930

July
1914

a, b, e

a-e

a -e

100
101
100
96
90
84
83
83
81
79
80
82
83
83

101
95
100
97
65
48
39
39
41
38
41
43
46

100
112
100 8 104
100
100
98
97
92
90
84
90
79
89
81
89
83
91
93
86
90
97
91
100
102
93
103

3

Lima

Jan.
1922

1913

a , b, e a , c-e

114
107
100
89
80
82
79
80
79
84
88
85
87
85

110
103
100
96
90
86
84
85
86
90
95
97
97
99

Union United
R u­ South­
States
ern Spain Swe­ Swit­ Tur­
of
ma­ Rho­
zer­ key South
Yugoslavia
den
nia desia
land
Africa B. L.
S.

20

6

June
1914

1913

1914

a , b, e

a-d

a, b, d

90
(3)
97
(3)
100
100
95
99
84 8 100
83
84
83
77
83
U
84
8.5
86
103
108
107

95
98
100
97
96
92
88
87
86
86
87
87
87

Ma­
drid

49

34

Istan­
bul

June Jan.1914 July
1914 1914 June
1914
a, b, e

104
97
100
103
107
103
100
102
99

a -e

101
101
100
97
94
8 92
91
91
92
95
95
97

a -e

a -e

Bel­
32-51 grade

3
(Croa­
tia
and
Sla­
vonia)

1914

19231925

July
1914

a -e

a -e

9

99
100
100
98
93
86
81
80
80

(3)
(3)
100
92
87
85
76
75
69

100
100
100
98
94
90
88
89
88

85
86

70

91

101
100
100
98
89
SO
76
79
81

82

1926

a-c, e

103
99
100
92
87
81
79
75
74

a -e

(*)
4 97
100
92
85
77
66
61
60

79

1Table from International Labor Review, 0<3tober 1937 (pp. 565-569) and January 1938 (pp. 118-122).
f Except for series in italics which are on original base, or recalculated on nearest possible year to 1929.
3 No indexes computed.
4 Average calculated for a period less than 1 year.
8 New or revised series beginning with this year.
6 Quarterly averages computed in February, May, August, and November.
7 April.
8July.
“ October.
10 New index based on family budget inquiry of 1932-33.


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

68

Labor Turn-Over

LABOR TURN-OVER IN MANUFACTURING,
DECEMBER 1937
THE LAY-OFF rate in factories showed a marked increase in Decem­
ber, as indicated by the Bureau of Labor Statistics’ survey of labor
turn-over. The rate rose from 5.99 in November to 7.77 per 100
employees in December, the highest rate recorded in any month
since 1929. Fewer employees left their jobs voluntarily or were dis­
charged during December than in the previous month, as indicated
by the fact that the quit rate declined from 0.72 to 0.60 and the dis­
charge rate from 0.16 to 0.14 per 100 employees during the period.
In a few industries, such as boots and shoes and woolen goods,
employees were rehired as operations were resumed. The accession
rate for all manufacturing industries accordingly showed a moderate
rise from 1.79 in November to 2.12 per 100 employees in December.
Compared with the corresponding month in 1936 decreases were
shown in the quit and discharge rates. The lay-off rate increased
from 2.14 to 7.77 and the total separation rate from 3.41 to 8.51 per
100 employees. The accession rate declined from 4.41 in December
1936 to 2.12 in December 1937.
All Manufacturing
The Bureau of Labor Statistics survey of labor turn-over covers
more than 5,000 representative manufacturing establishments, which
in December employed more than 2,450,000 workers. The rates rep­
resent 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 20 industries for which
separate rates are shown (see table 2) reports were received from
representative plants employing at least 25 percent of the workers in
each industry.
Table 1 shows the total separation rate classified into quit, discharge,
and lay-off rates and the accession rate for each month of 1936 and for
1937 for manufacturing as a whole. The average monthly rates for
1936 and 1937 are also presented.


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

741

LABO R TURN -O VER RATES IN MANUFACTURING

vo
to
CO

U. S. Bureau

of


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

L abor Statistics

Labor Turn-Over

743

T able 1.—Monthly Labor Turn-Over Rates (per 100 Employees) in Representative

Factories in 144 Industries
Class of rate and
year
Quit rate:
1937...................
1936_________
Discharge rate:
1937_________
1936_________
Lay-off rate: i
1937....... ...........
1936_________
Total separation
rate:
1937.___ _____
1936_________
Accession rate:
1937_________
1936............... .
1 Including

Jan.

Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Aver­
age

1.27
.71

1.19
.68

1.43
.86

1.38
1.16

1.37
1. 06

1.89
1.13

1.25
1.15

1.23
1.23

1.59
1. 57

1.05
1.29

0.72
1.13

0. 60
1.05

1. 25
1.09

.21
.20

.22
.17

.24
.19

.23
.21

.21
.20

.19
.23

.21
.23

. 19
.27

.19
.26

. 19
.24

. 16
.21

. 14
.22

. 20
.22

1.90
2.66

1.44
2.21

1.53
1.83

1.48
1.92

1.79
2. 06

1.94
1.92

2. 06
1.84

2.57
3. 23

2.84
1.47

4. 45
1.72

5.99
1.70

7.77
2.14

2.98
2. 06

3.38
3. 57

2.85
3.06

3.20
2. 88

3.09
3.29

3.37
3.32

4.02
3.28

3.52
3. 22

3.99
4. 73

4. 62
3.30

5. 69
3. 25

6.87
3.04

8.51
3.41

4.43
3.37

4.60
3.65

4. 71
2. 95

4.74
3. 97

4.04' 3. 56
4.46. 4. 05

3.69
4. 49

3.36
4.94

3.36
4. 72

3.78
5. 09

2.84
4.83

1.79
4. 60

2.12
4.41

3. 55
4.35

temporary, indeterminate, and permanent lay-offs.

Twenty Industries
Detailed turn-over rates for 20 selected manufacturing industries
are listed in table 2, which gives the number of quits, discharges, and
lay-offs, total separations, and total accessions per 100 employees in
reporting firms in December and November 1937 and December 1936.
T able 3.

Monthly Turn-Over Rates (per 100 Employees) in Specified Industries
Dec.
1937

Class of rates

Nov.
1937

Dec.
1936

Automobiles and bodies
Quit......... . . . .
Discharge___ ______
Lay-off_______________ .
Total separation............ .
Accession................. . ..

Quit_____ _____
Discharge_____ ______
Lay-off_____ ____ _____
Total separation______
Accession............

0. 55
.09
12.77
13.41
2.60

0. 63
.14
11.09
11.86
2. 96

1.80
.30
2.07
4.17
9.82

4 6 5 8 5 — 3 8 -------- 1 2


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

Nov.
1937

Dec.
1936

Automobile parts
0.45
.14
23. 09
23. 68
1.85

0. 70
.18
13.71
14.59
2.13

2.18
.63
1.89
4. 70
9.15

Brick, tile, and terra
cotta

Cigars and cigarettes

1.06
.15
17.18
18.39
1.79

0.79
.12
7.91
8.82
1.58

0. 62
.14
10. 22
10.98
3.62

0.94
.18
7.88
9.00
3.79

Electrical machinery
Quit__________ ______
Discharge........ ...........
Lay-off________________
Total separation___ ____
Accession_______

Dec.
1937

0. 57
.13
9. 65
10.35
.94

0.55
.22
5.33
6.10
.83

0.86
.22
1.18
2.26
3.74

1.36
.12
.88
2. 36
1.45

1.40
.11
6.43
7.94
1.93

Dec.
1937

0.51
.18
5.93
6. 62
1.07

1.13
.31
1.12
2.56
5. 25

Dec.
1936

Boots and shoes
0.98
.14
4.29
5.41
8. 57

0. 62
.10
8.36
9.08
2.75

0.88
.20
2.59
3. 67
6.58

Cotton manufacturing
0.74
.17
5. 50
6.41
1.78

Foundries and machine
shops
0.33
.17
6.25
6.75
.99

Nov.
1937

0.81
.15
5. 62
6. 58
1.64

1. 22
.24
1.02
2.48
3.53

Furniture
0.49
.21
8.85
9. 55
3.09

0. 71
.19
11.16
12.06
3.06

1.32
.37
5.47
7.16
3.13

744

Monthly Labor Review—March 1938

T able 3.— Monthly Turn-Over Rates (per 100 Employees) in Specified Industries— Con.
Class of rates

Dec.
1937

Nov.
1937

Dec.
1936

0.57
.15
9. 21
9.93
.31

0.87
.10
1.17
2.14
5.08

0. 50
.12
5. 85
6. 47
.38

_________

Total separation_________
Accession_______________

0.60
.03
9.07
9.70
8. 26

0. 68
.06
10.03
10. 77
1.91

0. 79
.06
3. 55
4.40
5. 05

0. 43
.75
13.11
14. 29
.49

0. 57
. 13
4.42
5.12
1.44

0.58
.38
.90
1.86
1.45

Slaughtering and meat
packing
0. 47
. 19
8.13
8. 79
8. 21
No data available.


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

0. 64
.20
7.64
8 48
7. 74

0. 53
.05
5.41
5.99
.46

1.00
.04
6. 68
7. 72
1.05

0. 26
. 18
2.67
3.11
1. 26

0. 28
.06
2. 70
3.04
1.95

Nov.
1937

1.01
.09
.54
1.64
2.85

0.45
.05
1.52
2.02
1.88

0. 62
.08
4. 67
5.37
1.15

1. 45
.32
11.16
12.93
7. 20

0.56
.05
5. 51
6.12
.72

0. 81
.06
7.41
8.28
.66

0.59
.07
13. 07
13.73
2.60

1.00
.10
3. 21
4.31
1.66

0.99
.07
3.15
4. 21
1.92

0.83
. 17
20.05
21.05
1.25

1.06
. 17
19. 37
20.60
1.32

(')
(')
(0
(')

(0

Sawmills
0.83
. 10
.28
1. 21
2. 61

Woolen and worsted
goods
0.60
.04
6.01
6. 65
7.17

Dec.
1936

Radios and phonographs

Rubber tires

Rayon
Q u it_____ _____________
Discharge_______________
Lay-ofl________ _______
Total separation_________
Accession______ _________

Dec.
1937

Knit goods

Petroleum refining

Men’s clothing

Discharge___

Dec.
1936

Iron and »teel

Hardware

Discharge___ ___________
Lay-off_________________
Total separation_________
Accession-------- -------- ---

Nov.
1937

Dec.
1937

0.93
.13
.77
1.83
7.30

2. 20
.14
15. 37
17.71
4.14

1.07
.25
13.00
14. 32
2.88

1.06
.27
5.40
6. 73
5. 46

Wages and Hours o f Labor

UNION SCALES OF WAGES AND HOURS OF MOTOR­
TRUCK DRIVERS, MAY 15, 1937°
THE average wage rate for union motortruck drivers increased 6.6
percent between May 15, 1936, and May 15, 1937, according to
reports received by the Bureau of Labor Statistics from union officials
in 60 cities.1 The average hourly rate in 1937 was 76.7 cents; in
1936 it was 71.9 cents.2
T able 1.— Distribution of Union Motortruck Drivers, by Hourly Rates, 1936 and 1937

Classified hourly rates

Percentage of members with class ifie d h o u r l y
rates
1937

1936

Under 30 c e n t s ...................... ........ ....................
30 and under 35 cents_________ ___________
35 and under 40 cents....... .......................... ........
40 and under 45 cents................... ......... .............
45 and under 50 cents____ ________ ________
50 and under 60 c en ts............................ ...........
60 and under 70 cents_____________________
70 and under 80 cents..........................................
80 and under 90 cents...........................................
90 cents and under $ 1 ...___ ________ ______
$1 and under $1.10________ _____ _________
$1.10 and over.......................................................

(2)
0.2
.3
1.6
.9
5.8
27.1
27.0
15.5
9.2
11.3
1.1

(2)
0.3
.2
1.9
1.3
15.4
31.5
19.7
15.8
9.3
3.5
1.0

Average hourly rate................ ............................

$0.767

$0. 719

1 Based on comparable quotations. See text footnote 1.

1

2 Less than Ho of 1 percent.

More than half the members had rates between 60 and 80 cents in
both years. In 1937 the proportion having rates between 70 and 80
° Truck drivers’ rates in each city covered in this survey may be obtained in pamphlet form by writing
to the Bureau of Labor Statistics.
1 The percentage change and the averages in this report are based on aggregates computed from 747 com­
parable quotations furnished by unions reporting for both years. These quotations covered 126,716 mem­
bers. The membership weights in the aggregates used in both years are those reported for the second year.
Including the 30,731 members for whom no 1936 quotations were received, the 1937 average rate was $0,750,
and the average hours per week were 47.7.
The term “truck drivers” covers a heterogeneous group of occupations, such as drivers of building and
excavating trucks, coal trucks, ice trucks, general hauling and transfer trucks, delivery trucks of various
and miscellaneous commodities, and express and freight trucks. In each of these occupations different types
and sizes of trucks are likely to be used. Every truck-driving occupation, and every size and type of truck
usually has a different wage rate. Furthermore there is a great variation between cities as to commodities
handled, types of trucks, and the terminology used to describe these different occupations. For these
reasons it is impossible to make an intercity classification by types. The data on all truck driving in all
cities studied, therefore, are treated as one trade in this study.
2 The 1936 average rate cited here differs from the $0,727 average given in last year’s report. (See Monthly
Labor Review, M ay 1937.) The latter is an average of the rates of all the union members reported for 1936,
whereas the $0,719 rate is based on comparable quotations furnished in 1936 and 1937. (See footnote 1,
above.)


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

745

Monthly Labor Review March 1938

746

cents per hour, however, increased from 20 to 27 percent, while the
proportion between 60 and 70 cents decreased from 32 to 27 percent.
More than half the members who had rates of less than 60 cents an
hour in 1936 moved into higher brackets in 1937. In 1936 less than
5 percent and in 1937 over 12 percent of the members had rates of
$1.00 and over.
Nearly two-thirds of the union members covered in both years’
studies received rate increases, while less than 1 percent had decreases.
There was no change in hourly rates for 34 percent of the members.
Total number of quotations comparable with 1936--------Number providing increases_____________________
Number providing decreases_____________________
Number with no change_________________________

747
441
11
295

Total number of members covered by comparable quota­
tions____________________________________________ 126, 716
Percent affected by increases-------------------------------65. 1
Percent affected by decreases____________________
0. 9
Percent with no change_________________________
34. 0

The largest number (166) of wage-rate changes between May 15,
1936, and May 15,1937, were for increases of from 5 to 10 percent. Such
changes affected 27 percent of the union members covered in both
years. Seventeen percent of the members received increases amount­
ing to between 10 and 15 percent of their 1936 rates, while over 10
percent had increases of from 15 to 20 percent. Increases of over 20
percent were reported in 43 quotations which covered 3.5 percent of
the members. (See table 2.)
T able 2.— Percent of Change in Union Wage Rates of Motortruck Drivers M ay 15, 1936,

to M ay 15, 1937
Number of quotations
showing—

Percentage of total
members affected by—

Classified percentage change
Increase

10 and under

15

percent__________________________

Decrease

73
166
110
49
43

4
3
1
2
1

Increase
7.3
27.2
17.0
10.1
3.5

Decrease

(i)
(')

0. 3
.5
.I

i Less than Ho of 1 percent.

Union Scales of Hours
The average full-time hours in 1936 were 48.2, and in 1937 they were
47.8 per week. (See table 3.) Almost two-thirds of the members
had scales of 48 hours per week in both years. The proportion of
members having weekly hours in excess of 48, however, decreased
from 19 percent in 1936 to 12 percent in 1937. On the other hand,
the proportion of members having a workweek of over 44 but less than
48 hours increased from 3 percent in 1936 to 10 percent in 1937.

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

747

Wages and Hours of Labor
T

able

3.—Distribution of Union Motortruck Drivers, by Hours Per Week, 1936 and 19371

Classified hours per week

Percentage of mem­
bers with classi­
fied hours
1937

1936

Less than 40 hours.................... ...... ...........
40 hours_________ ______ ___ _____
Over 40 and under 44 hours.....................
44 hours_____________________ .
Over 44 and under 48 hours..... ....................
48 hours......... ............. ...... ......................
Over 48 and under 54 hours____________
54 hours........................................
Over 54 and under 60 hours_________
60 hours....................................... . . .
Over 60 hours......................................

(s)
10.9
(2)
2.5
10.1
64.8
1.6
5.6
1.4
2.9
.2

0.1
11.2
(2)
1.8
3.1
64.7
7.8
5.2
1.4
4.5
.2

Average hours per w e e k ....................

47.8

48.2

1 Based on comparable quotations. See text footnote 1.

2 Less than \{o of 1 percent.

For 83 percent of the members there were no changes in hours
between May 15, 1936, and May 15, 1937. About 16 percent had
their hours reduced and slightly over 1 percent had increases in hours.
Total number of quotations comparable with 1936______
Number providing increases_____________________
Number providing decreases_____________________
Number with no change_________________________

747
26
76
645

Total number of members covered by comparable quota­
tions------------------------------------------------------------------- 126, 716
Percentage affected by increases__________________
1. 2
Percentage affected by decreases_________________
15. 8
Percentage with no change______________________
83. 0

One-hour reductions in the workweek were more frequent than any
other changes in weekly hours. Eighteen quotations, affecting 6.4
percent of the total membership, showed this amount of change. Ten
quotations, showing decreases of 3 hours per week, however, affected
nearly the same proportion (6.2 percent) of the membership. Sixteen
quotations, affecting 1.5 percent of the total members, indicated re­
ductions of 12 to 13 hours.
The few increases in weekly hours ranged from one-half to 18 hours
per week. Ten quotations showed increases of 8 hours, but these
affected only 0.4 percent of the total members. Table 4 shows the
number of quotations reporting each amount of hour change and the
percentages of the membership affected.


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

748

Monthly Labor Review—March 1938

T able 4.—Amount of Change in Union Hour Scales of Motortruck Drivers May 15,

1936, to May 15, 1937
Number of quota­
tions showing—
Amount of change in hours per week

Percentage of total
members affected
by—

Increase Decrease Increase Decrease
H hour............................................................. ...... .........................
lH hours_____________________ ____- ............. ............ ...........
2hours...................-........... ............. .................. - ............................
2Hhours............... ............................. ............................................
3 hours____ ________ ____________ _____________ ________
4hours_____________________ ________________ ______ _
5 hours............ ................................. ............................................... .
8 hours........................................ .....................................................
9 hours._____ _________________________________________
12 hours___ ____ ______________________________________
Over 12 hours.....................................................................................

7

l
2
2
10
4

18
3
1
3
10
9
1
6
8
1
9
7

0)
O
0.1
.3
.4
.4

(I)
(l)

(')

6.4
.6
.1
6. 2
.3
.4
.3
1.3
.2

1 Less than Ho of 1 percent.

Overtime and Extra Pay Provisions
Time and a half was specified as the overtime rate in 61 percent of
the quotations, which covered 58 percent of the total membership
reported. Over 10 percent of the membership had an overtime rate
of time and a third, while specific rates, higher than the regular rates,
were provided for 20 percent of the members. Straight pay for over­
time was reported in 138 quotations covering 6.4 percent of the driv­
ers included in the survey.
Overtime work was entirely prohibited in only 14 reports applying
to 2 percent of the membership. In a number of agreements, however,
overtime was restricted to emergency or necessary work. Restrictions
as to the amount of overtime that may be worked in a day or week
were not usually provided. A few agreements specified that the initial
overtime rate should be further increased after a given amount of
overtime had been worked.
T able 5.—Overtime Rates Provided for Motortruck Drivers in Union Agreements,

May 15, 1937 1
of Percentage
Overtime rate provided in union agreements Number
members
quotations ofcovered
No overtime rate provided_______ _____
Straight tim e........................... ............. ........
Time" and one-third___ ____ ___________
Time and one-half__________ _________ _
Double time_________ ________________
Specified amounts, not a multiple of the
regular rate..................................................
Overtime prohibited— ...............................
1 Based on all quotations received for 1937.


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

32
138
90
668
18

1.9
6.4
10.7
67.9
.8

123
14

20.3
2.0

Wages and Hours of Labor

749

Provisions of Union Agreements 3
The 8-hour working day prevailed in most of the union agreements.
Some agreements provide as few as 5 hours or as many as 14 hours for
certain drivers, and some provide that more hours may be worked
in the summer.
In even fewer agreements were there exceptions to the 6-day week.
In a few agreements, the workweek of certain classes of drivers was 5,
5%, or 7 days. A uniform 5-day week was provided for in some
agreements. In a few cases a 5-day week prevails during the summer
while a 6-day week is worked during the rest of the year.
Most of the agreements establish a definite range during which
work is to be performed. The starting time is commonly 8 a. m.,
though work may begin as early as 7 a. m. in a number of cases.
Except for milk and bakery delivery drivers, earlier starting times
are rare. Finishing time, except for the latter group of workers, is
generally between 5 and 6 p. m. Frequently earlier starting times
are provided for the summer months and later starts are sometimes
provided for Saturday work.
Sunday and holiday work.—Work on Sundays is prohibited in only a
few of these agreements. While holiday work is more frequently
prohibited, the restriction is general only for Labor Day. Occasionally
holiday work is prohibited only after a certain hour, usually 9 or
10 a. m. In some agreements a union permit must be secured for
any holiday work; in others certain emergency deliveries may be
made as long as regular work is not performed. In a few cases,
holidays which fall on Saturday or Monday are not to be observed.
Although Sunday work is generally paid for at the usual overtime
rate, a higher rate (usually double time) is paid for holiday work in a
number of cases. A minimum amount of pay, usually 4 hours, must
often be given if any work is performed on such days. Holidays with
pay are sometimes granted, but usually for special holidays only, or
if at least 3 days have been worked during the week of the holiday.
The holidays generally observed are New Year’s, Memorial Day,
Fourth of July, Labor Day, Thanksgiving, and Christmas. Wash­
ington’s Birthday, Armistice Day, and election day are additional
holidays frequently observed, while Columbus Day and Lincoln’s
Birthday are less frequently considered holidays. Less than these
6 holidays are observed in only a few cases, the minimum number of
holidays being 3. Religious and local holidays are also covered in a
number of agreements.
Extra-pay provisions.—The most frequent extra-pay provision is that
requiring the payment of a minimum amount if a driver begins work,
but is sent home before the regular day’s work is completed. Gener­
ally at least half a day’s pay must be given, with full pay if the driver
1 Other than wages and hours discussed above.


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

750

Monthly Labor Review—March 1938

starts the afternoon’s work. In a few cases a full day’s pay must be
given for any day on which work is begun. When the cause of the
temporary lay-off is adverse weather conditions, this minimum pay­
ment need not be made.
A certain payment is also specified for drivers ordered to report to
work when no work is given. This is usually 2 hours’ pay but in some
cases half or a full day’s pay. When a driver is sent out on an over­
night trip, the employer is usually required to cover whatever expenses
are incurred for meals and lodging. Some agreements specify the
amount to be furnished for such expenses, varying from $1.50 to $3.50
per day. A meal allowance is sometimes granted for trips which are
unusually long but which do not involve being away from home over
night.
Other types of extra pay sometimes provided in these agreements are
a bonus in addition to overtime when a driver is called back after
having completed his day’s work and a provision for regular pay when
a driver is required to wait beyond the usual time to receive his wages.
There are also numerous provisions covering liability for damaged or
undelivered goods, for unusually heavy loads, etc.
Union status.—Union membership is usually a condition of employ­
ment. Owners who do any driving must also be members of the
union. About one-fourth of the agreements include the check-off
system of collecting union dues, but in some cases only when individual
members authorize the deduction. In other agreements the company
deducts the amount of back dues when requested by the business agent
of the union.
These agreements usually designate the union as the source of
supply for replacements or additions to the permanent staff. The
union is granted a reasonable amount of time, sometimes specified
as 24 or 48 hours, in which to furnish help. If there is a shortage,
preference must usually be given to members of the employers’
association which is a party to the agreement. In a few agreements
union membership is not required. In such cases it may be provided
that members are to be given preference or that there is to be no
discrimination for union membership. These agreements do not
establish the check-off or designate the union as the source of supply
of additional workers.
About half of the agreements require that temporary workers shall
carry a union permit or be selected with the approval of the union.
In the others, the company is permitted to select freely its temporary
workers. In all instances temporary workers must join the union
within a given time, which varies from 1 to 30 days.
Seniority and discharge.—One week’s notice must be given in a num­
ber of agreements when a driver is quitting or is to be laid off, although
in a few cases 2 weeks’ notice is required. Failure to give the required

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

Wages and Hours of Labor

751

notice when quitting causes the driver in many cases to forfeit a week’s
pay. Similar notice is required for discharge for causes other than
intoxication or dishonesty. Other reasons for discharge are not
usually specified, except that the discharge must be for good cause and
must not involve union discrimination. The company generally
agrees to discharge men expelled from the union, the union in turn
agreeing to consider the expulsion of any driver discharged for cause.
No single method of sharing work during dull periods predominates
in these agreements. Overtime may be prohibited, hours reduced,
or available work equally divided among regular workers, while in
some cases rotation of opportunities for work is followed. In a
number of agreements seniority is to be the guide in lay-offs and
reemployment, seniority rights to continue through a lay-off of not
more than a specified number of weeks. Seniority rights also hold
through leave of absence for sickness or union duties, provided that
the leave does not exceed from 3 to 6 months.
Vacations.—Vacations with pay are granted in nearly a fourth of
these agreements, the length of vacations being about equally divided
between 1 and 2 weeks. Usually a year of service is required before
a driver is eligible for a vacation. The acceptance of pay in lieu of a
vacation is permitted only to drivers leaving the service of the em­
ployer. The period during which vacations must be taken is fre­
quently specified, but preference is accorded to individual drivers in
accordance with seniority. In a very few cases drivers have the right
to take annual vacations of a designated length, but receive no pay
while off duty.
Other provisions.—Stoppages of work are prohibited during the life
of the agreements except that in some cases sympathetic strikes are not
to be considered violations of the agreements. Sometimes sympa­
thetic strikes are permissible only when other locals of the drivers’
union are involved.
The learning or probation period may vary from a few days to sev­
eral months, the longer periods being required on the more complicated
delivery routes. Somewhat lower pay is provided during this period.
When uniforms are required, the company usually assumes the full
cost, with an additional allowance for maintenance. In a few cases
the cost of uniforms is shared equally by the company and the worker.
Less frequently, a maximum price to the employee is set in the agree­
ment and the maximum number of uniforms he is expected to have is
stipulated. The employer usually assumes the obligation of paying
all traffic fines caused by the drivers’ attempts to maintain fixed time
schedules. Drivers required to furnish bond are reimbursed by their
employers for the expenses incidental to such bonding.


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

Monthly Labor Review—March 1938

752

SALARIES PAID BY CALIFORNIA MUNICIPALITIES,
1937 1
THE HIGHEST monthly municipal-government salary as of June 1,
1937, in 6 California cities of over 50,000 population was $1,000, paid
to the city manager of a municipality with a population of 284,000.
The monthly salaries of the city attorneys in these municipalities
ranged from $350 to $833.33; of city clerks, from $225 to $600; of
police captains, from $205 to $300; and of fire captains from $190 to
$250. Unskilled laborers were paid from $4 to $5 per day. These
and other wage and salary statistics of municipal employees as of the
same date are shown in the following table.
Only 2 of the 6 cities reported compensation for mayors—one a city
of 82,000 population paying $10 a meeting with a maximum of 4
meetings per month, and the other a city of 1,232,000 population
paying $833.33 per month.
The city-council compensation ranged from $5 per meeting with a
maximum of four meetings per month to $400 per month.
Monthly Salaries Paid by 6 California Municipalities with Over 50,000 Population,
June 1,1937
City with population in 1930 of—
Position or occupation

City managers_____ __________
City attorneys___ ____________
City clerks________ __________
Auditors_____________________
Assessors____ ____-___________
Treasurers......... ............................
Tax collectors________________
City engineers....... - - .................
Street superintendents_________
Waterworks superintendents____
Park superintendents__________
Playground superintendents—_1-.
City judges____________ _____
Health officers....... ....................... .
Police department:
Chiefs.____ ______________
Captains_________________
Lieutenant inspectors______
Sergeants______ __________
Patrolmen...............................
Fire department:
Chiefs..................... .............. .
Battalion and assistant chiefs
Captains_________________
Lieutenants______________
Operators and engineers____
Hosemen...... ...........................
Unskilled laborers.........................
1 Part time.
2 Controller.
3 County.

284,000

57,500

76,000

82,000

142,000

$600.00
i 350.00
300.00
300. 00

$900.00
475.00
225. 00
2 425. 00
350. 00
243.00

$833.33
350.00
225. 00
250. 00
275.00
250. 00

350.00

350. 00

$750.00 $1,000.00
416.66
583.33
325.00
250.00
350.00
500. 00
250. 00
(3)
325.00
260. 00
250. 00
(3)
583.33
450. 00
250. 00
(7)
350. 00
390.00
250. 00
475.00
260. 00
500. 00
475.00
375. 00

( 7)

350.00
350. 00
330. 00
205.00
160.00180.00
330. 00
215.00225. 00
190.00
182. 50

160. co­
rn. 00

8 5. 00

1Auditor.
5Assessor.
8Treasurer.

( 5)
( 7)

450.00
300.00
109. 00
270.00
350.00
360.00
247. 50
225.00
202. 50
162.00180.00

(6)

400.00
(7)
230. 00
1 175.00
383.33
i 125.00
375.00
275.00
240.00
205. 00
160. 00- 1
185.00 /

375. 00
356. 00
225. 00- \
288.00 /205. 00
202.50
195. 00
190.00
184. 50
160.00J29. 60185.00
153.90
8 4. 00
8 4.00

356.50
261.44
237. 68
213.90
190.14 /\

427. 50
285. 00
237. 50
209. 00
171.00190.00

356. 50
427. 50
238.00- }_____
285. 00
213. 90
223.25
211.37
204.40
209. 00
162. 00171.00195.00
190. 00
8 4.85 «. 50-. 55

1,232,000

$833.33
600.00
600. 00
(3)
600. 00
(3)
833.33
475. 00
450.00
562. 50
600. 00
600. 00
300.00
250. 00
225. 00
170.00200. 00
600.00
300. 00
250. 00
225.00
170. 00200. 00
110. 00

7Engineer.
8Per day.
* Per hour.

1 League of California Municipalities. Report No. 12: Monthly Salaries Paid in 143 California Cities
as of June 1, 1937. San Francisco, 1937.


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

753

Wages and Hours of Labor

COLLEGE SALARIES, 1935-36
AN ANALYSIS of the salaries of 25,530 full-time faculty members in
252 colleges and universities for the scholastic year 1935-36 shows
great variations in the compensation received. For example, in the
51 land-grant colleges, the median salary for a full-time professor on a
9-months basis was $3,951 ; but there was a difference of almost $2,000
between the median 9 months’ salary in the 5 largest institutions
($4,554) and that in the 5 smallest institutions ($2,606).
The median salary on a 9-month basis, for all professors in the 252
institutions included in the accompanying table was $3,592. How­
ever, 132 were receiving $7,000 or more, while 544 were being paid less
than $2,000 as full professors.1
Salaries for staff members in Negro colleges, including all faculty
ranks, ranged from $1,173 to $2,094. These institutions are in the
Southern States, and often homes are provided for faculty members at
very low rentals.
Median Salaries in 252 Colleges and Universities in the United States, 1935-36
M E D I A N S A L A R IE S

Deans on basis
of—
Number and types
of colleges

Professors on
basis of—

Associate pro­
fessors on basis
of—

Assistant pro­
fessors on basis
of—

Instructors on
basis of—

11-12
11-12
11-12
9
11-12
9
9
9
11-12
9
months months months months months months months months months months
P u b lic ly c o n tr o lle d i n s t it u t io n s

51 land-grant__ __
5 largest landg ra n t1-. . . __ _
5 smallest landg ra n t1_________
17 Negro land-grant.
16 State universities__________
15 State colleges___

$4, 300

$4,859

$3,951

$3,869

$2, 973

$3,017

$2,486

$2, 574

$1, 792

$2, 012

2, 938

1,914

2,123

5,625

5,375

4,554

4, 676

3, 396

3, 577

2,743

4,083
2, 062

3,375
2,094

2,606
1,562

2,942
1, 795

2,200
1, 208

2,714
1,586

1,885
1,328

2, 443
1,419

1,553
1,193

2,007
1, 173

4, 075
3,125

3,913
3,375

3,564
2,886

3, 281
2,797

2,726
2,171

2, 827
2, 444

2, 305
1,869

2,463
2,082

1,803
1, 582

1,699
1, 578

P r iv a t e ly c o n tr o lle d in s t it u t io n s

16 men’s colleges.. . $4, 083
38 women’s colleges. 3,000
7 large universities.. 4, 500
16 medium universities__________
4,375
76 small colleges___ 1,594

$4,375
4, 000
6,563

$3, 583
3,150
5,143

$4, 313
2, 700
5, 733

$3, 000
3,026
3, 625

$3, 354
2, 228
3, 947

$2,688
2, 512
2,944

$2, 792
2,023
3,051

$2, 052
1,785
2,284

$2, 027
1,578
2,154

5,167
2, 083

3,950
1, 662

4,125
1,879

3,215
1,429

3,198
1,670

2, 673
1,375

2, 583
1,478

1,811
1,015

1,406
1,190

i Not included in the total of 252 institutions, since they are duplicated in the calculations for 51 land-grant
institutions.
1 U. S. Office of Education. Bulletin, 1937, No. 9: College Salaries, 1936. Washington, 1937.


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

754

Monthly Labor Review—March 1938

Median Salaries in 252 Colleges and Universities in the United States, 1935-36—Con.
N U M BER OF FA CULTY M EM BER S

Deans on basis
of—
Number and types
of colleges

Professors on
basis of—

Associate pro­
fessors on basis
of—

Assistant pro­
fessors on basis
of—

Instructors on
basis of—

9
11-12
9
11-12
9
11-12
9
11-12
9
11-12
months months months months months months months months months months
P u b lic ly c o n tr o lle d i n s t it u t io n s

51lan d grant-------5 largest landg ra n t1------------5 smallest landg ra n t1..................
17 Negro landgrant__ _____
16 State universities__________
15 State colleges___

52

379

1, 879

1,595

1,045

831

1,658

1,229

2,050

1,215

3

78

489

524

249

272

371

432

309

533

4

29

51

64

28

28

37

50

99

43

5

41

30

128

15

58

28

62

95

158

70
9

91
32

724
no

177
134

425
128

100
62

559
121

120
143

649
118

198
90

P r iv a t e ly c o n tr o lle d in s t it u t io n s

16 men’s colleges__
38 women’s colleges.
7 large universities..
16 medium universities__________
76 small colleges___

8
24
4

16
26
53

66
551
301

260
150
387

48
216
104

150
37
254

66
302
209

139
39
328

69
316
337

214
58
469

17
46

54
52

410
608

232
267

137
142

113
80

288
113

198
43

308
269

272
67

Total 252institutions 2___

235

744

4, 679

3,330

2,260

1,685

3, 344

2,301

4,211

2, 741

1 Not included in the total of 252 institutions, since they are duplicated in the calculations for 51 landgrant institutions.
2 Of the 25,530 full-time staff members in 252 institutions, 14,729 are on a 9-month basis, and 10,801 are on
a 11-12-month basis.

FARM WAGE AND LABOR SITUATION, JANUARY 1,1938
FARM WAGE rates without board averaged $1.61 per day on January
1, 1938, for the country as a whole, with a range among the States from
80 cents in South Carolina to $3 in California. On January 1, 1937,
the general average was $1.51 and the range was from 80 cents in
South Carolina to $2.70 in California and Connecticut. Monthly
wages without board averaged $33.28 on January 1, 1938, as against
$31.37 on January 1 , 1937, and $28.63 on January 1 , 1936. These
figures and those in the accompanying tables are from reports of the
United States Bureau of Agricultural Economics.
The supply of farm labor on January 1, 1938, was 92 percent of
normal and the demand 79.2 percent, as compared with corresponding
figures of 91 and 81.7 percent on January 1, 1937.
Table 1 shows average farm wages, supply of and demand for farm
labor, and number of persons employed per farm, on January 1, 1938,
as compared with January 1, 1936, January 1 and October 1, 1937,
and, for wage rates, with the annual average 1910 -14.

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

755

Wages and Hours of Labor

.

T able 1 —Average Farm Wage Rates and Employment at Specified Periods
Annual
aver­ Jan. 1, Jan. 1, Oct. 1, Jan. 1,
1936
age,
1937
1937
1938
1910-14

Item

Farm wage index______ ____________________ . . .
100
Farm wage rates:
Per month, with board__________ . . . . .
$20.41
$29.09
Per month, without board_______ . . . ________
Per day, with board.......................................
$1.10
Per day, without board___________________________
$1.43
Supply of and demand for farm labor (percent of normal):
Supply.................................... .................................
Demand___________________ ____________ __________
Supply as percentage of demand____ _________________
Number of persons employed per farm: i
Family labor________________________________ . . . .
Hired labor_____________________________
Combined_________________________________ _____ _

94

103

126

111

$18. 54
$28. 63
$1.00
$1. 37

$20. 68
$31. 37
$1.10
$1. 51

$25. 51
$36. 71
$1.39
$1. 83

$22.18
$33. 28
$1.19
$1. 61

96 7
76.0
127.2

91 0
81. 7
111.4

80 6
91. 7
87.9

92 0
79. 2
116. 2

2.04
1.10
3.14

1.89
. 67
2. 56

1. 99
.62
2. 61

1. 94
. 69
2.63 '

1 On farms of crop reporters.

Average farm wage rates per month and per day, with board and
without board, on January 1, 1937 and 1938, are shown in table 2 by
geographic division.
T able 2 .— Average Farm Wage Rates on January 1, 1937 and 1938, by Geographic

Division
Per month,
with board

Per month,
without board

Per day, with
board

Per day, w ith­
out board

Geographic division

United States______________
New England______________
Middle Atlantic....... ..........................
East North Central. ____________
West North Central.______ ______
South Atlantic__________________
East South Central______________
West South Central________ . ..
M ountain................... „
Pacific___________ . .

1937

1938

1937

1938

1937

1938

1937

$20.68

$22.18

$31.37

$33.28

$1.10

$1.19

$1.51

$1.61

29.56
25.28
24. 24
19. 77
15.85
15.12
17. 66
31.01
37.23

30. 78
27.85
26.75
21.49
16.41
15.74
18.63
31.90
42.17

51.05
41.34
35. 79
30.72
23. 33
21.98
25.82
45.47
59.45

52.38
44. 47
39.12
32. 56
24.23
22.47
27. 36
47. 09
65.75

1.67
1. 52
1. 38
1.13
.82
.76
.88
1. 50
1.75

1. 70
1. 72
1.54
1. 22
86
. 78
.94
1. 56
1.99

2 42
2.12
1. 86
1.62
1. 09
1.00
1.17
2 03
2.57

2. 51
2 32
2. 04
1. 74
1.15
1.02
1.24
2.10
2.83

1938

WAGES IN COTTON PICKING, 1937
WAGE RATES for the picking of seed cotton averaged the same in
1937 as in 1936—69 cents per 100 pounds. The rates in 1937 ranged
from 60 cents in Alabama, Georgia, and South Carolina to 95 cents
in California. The following table, taken from Crops and Markets
for November 1937, published by the United States Department of
Agriculture, shows the average rates for each State and for the United
States as a whole in 1929 and in each year from 1934 to 1937.


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

756

Monthly Labor Review—March 1938
Average Wage Rates for Picking 100 Pounds of Seed Cotton, 1929 and 1934-37
State

1929

1934

1935

1936

1937

All States............... $1.06 $0.60 $0.58 $0.69 $0.69
Virginia...... ...........
North Carolina___
South Carolina___
Georgia...................
Florida_________
Illinois..... .............
Missouri________
Kansas...................
K en tu ck y .............

1.15
1.01
.81
.90
1.07
1.15
1.12
1.30
1.18

.65
.65
.50
.50
.55
.75
.80
.75
.80

.65
.65
.50
.50
.55
.75
.75
.70
.75

.70
.65
.55
.55
.60
.90
.95
.75
.95

.75
.70
.60
.60
.65
.70
.80
.65
.80

State

1929

1934

1935

1936

1937

Tennessee______ $1.34 $0. 65 $0. 60 $0.80 $0.70
.92
.55
.50
.60
.60
Mississippi_____ 1.08
.55
.55
.75
.80
Louisiana......... __ 1.01
.55
.70
.55
.65
Texas.___ _____ 1.11
.60
.60
.65
.65
1. 22
. 75 . 70 . 75
. 75
1. 06 . 60
. 55
.75
.70
1. 25
.65
65
.70
.70
.85
1. 50
. 90 .90 1 10
1.45
.90
.90 1.00
.95

########
WAGES AND WORKING CONDITIONS OF HARBOR
WORKERS AT ROTTERDAM, 1937 1
AN AVERAGE increase of about 7 percent was provided for by a
new collective agreement between the harbor workers and their
employers at Rotterdam, Netherlands, which became effective on
October 18, 1937. The rates were to remain in force until January
3, 1938, at which time they were to be increased by another 3 percent,
calculated on the old schedule.
The new scale which went into force in October is shown in the
following table.
Minimum Weekly Wages Set by Agreement for Harbor Workers, Rotterdam
[Exchange rate of florin, September 1937=55 cents]

Branch of industry and class of workers

Mini­
mum
weekly
wage

Branch of industry and class of workers

F lo r in s

Grain factors:
Foremen___________ _________
Assistant foremen___ ___________

R e g u la r em p lo y ee s

Warehousing, forwarding, and Rhine
shipping:
Workers in sheds, etc.L-...................
Crane operators L............................. .

f

26.00
27.90
I 2 9.30
Young w orkers................................ < to
[ 2 26.00
Stevedoring...............................................
323.70
Mechanical enterprises:4
First engineers______________ __
29.80
Second engineers............................. .
27.90
Boatswains........................................ .
27.90
Crane operators......... ....................... .
27.90
Laborers (trimmers, etc.)................
26.00
Fireman, assistant engineers______
26.00
F ire m e n ..___ ___ _____________
23.70
Floating, pneumatic grain elevators:4
29.80
First engineers............................... .
27.90
Second engineers........................... .
Boatswains_________ __________
27.90
Weighers............................................
27.90
Firemen (assistant engineers)_____
26.00
F ire m e n ..____ ________________
23.70
Laborers..................... ........ ...............
26.00

Mini­
mum
weekly
wage

R e g u la r e m p lo y ee s — Continued
F lo r in s

31.60
27.00

Rate per
shift
C a s u a l e m p lo y ee s

Grain superintendents:
4-hour shift________________ ____
4J^-hour shift- _________________
5^-hour sh ift5. ________________
Mechanical enterprises:
4-hour shift - ___ ______________
4)^-hour shift_. ............ ...................
5^-hour sh ift5__________________
8J^-hour shift___________________
Other enterprises:
4-hour shift__________ __________
4]^-hour shift. ____ ____________
5H-hour shift *__________________

F lo r in s

2.78
3.12
3.82
3.20
3. 60
4.40
6.40
2.45
2. 75
3.35

11.40 florins per week extra, if working for same employer since Mar. 3,1924.
a According to age.
3 Guaranteed minimum.
4 Wages shown include any supplements.
‘ Saturday, 8 a. m. to 1:30 p. m.
i Data are from report by Harold D. Clum, American Consul General at Rotterdam, October 23, 1937.


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

757

Wages and Hours of Labor

Workers employed by stevedoring firms handling injurious commod­
ities, such as bones, bonemeal, cement, dried fish bones, wet salted
hides, asphalt, pitch, etc., are to receive extra compensation varying
from 0.23 to 0.32 florin per shift or from 0.46 to 0.64 florin per shift,
depending on the nature of the goods.
For harbor workers employed in mechanical enterprises such as
stevedoring companies operating loading bridges, transporters, and
floating grab cranes for the loading and unloading of coal, ore, and
other bulk cargoes, an average 48-hour week is provided. Daily
hours may not exceed 8%. Overtime work and work on Saturday
afternoon is to be paid for at the rate of 0.95 per hour, and work on
Sunday at the rate of 3.00 florins per half shift or part thereof.
For other harbor employees a 48-hour week is provided, and
overtime at 0.80 to 1.00 florin per hour and 3.00 per shift on Sunday.
All harbor workers are entitled to an annual paid vacation of at
least 2 workdays when employed by the same firm since January 2 of
the current year, 4 workdays when employed since July 1 of the past
year, and 6 workdays when employed since January 2 of the past
year. Casual harbor workers belonging to the “harbor labor reserve”
are entitled to an annual vacation depending upon the number of
shifts performed during the previous fiscal year, as follows:
P a i d vacation
(w o rk d a y s )

200 to 299 shifts_______________________________________
300 to 399 shifts_______________________________________
400 to 499 shifts_______________________________________
500 shifts or more______________________________________

1
2
3
4

The compensation paid for each day of vacation is to be equal to
the ordinary wage for a morning and afternoon shift.


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

Employment Offices

ACTIVITIES OF UNITED STATES EMPLOYMENT
SERVICE, JANUARY 1938
APPLICATIONS for work and registrations for unemploymentcompensation benefits brought one of the largest volumes of regis­
trants to United States Employment Offices during January in the
history of the public employment service offices.
More than 1% million applications for work were registered by
offices during the month. Over 2% million original claims and 2%
million continued claims for benefits were filed through the offices.
Despite the great volume of this activity, 135,759 placements in jobs
were reported.
The number of applications for work represents the largest volume
for any single month since the peak of the registration activity in
connection with the Works Progress Administration program. A
total of 1,557,388 applications for work were filed, 939,708 representing
new applicants (persons not previously registered with the Employ­
ment Service), and 617,680 representing renewals of previously regis­
tered persons whose applications had become inactive. Men num­
bered 704,865 of the new applicants and women 234,843.
The procedure for the filing of claims for unemployment-compensa­
tion benefits necessitates that claimants must be actively registered
in an office of the United States Employment Service. During
January, benefit payments were started for the first time in 22 States,
their activity representing the first large-scale operations of the
unemployment-insurance program. Wisconsin is the only State
which had paid benefits before January. The registrations of benefit
claimants in these new benefit-paying States as a result accounted in
large measure for the striking increase in the volume of employmentservice registrations. The increase in such applications became
noticeable in December, immediately prior to the beginning of actual
unemployment-insurance operations in these States, and reached
wholesale proportions during January.
In the 22 new benefit-paying States, new applications registered
in January were 135.8 percent greater than the number registered in
December, and 329.7 percent greater than the number registered in
November. Increased demand for jobs, apart from the requirements
of the unemployment-insurance provisions, however, also accounted
758

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

Employment Offices

759

for part of the increase in the number of applicants. New applica­
tions registered in the 26 nonbenefit-paying States rose 55.4 percent
above the level reached in December, and 75.5 percent above the
November total.
Tentative reports for 6 weeks, from January 1 through February 12,
indicate that 2,450,379 original claims and 4,413,207 continued
claims for unemployment-compensation benefits were filed through
the Employment Service offices in the benefit-paying States. The
filing of these claims for benefits is a separate transaction from the
prerequisite registration for employment.
Due to the volume of work carried on in connection with the greatly
increased registration load, activity in the placement field suffered
curtailment. This was reflected in a decrease in the number of field
solicitations of employers to a total of 70,098, the smallest volume
reported since February 1936. It is interesting to note that the
decline in field visits from December to January was 44.5 percent in
the new benefit-paying States, but only 1.3 percent in the nonbenefit­
paying States. However, in spite of the reduced activity and the
effect of the restricted number of job openings available, 135,759
placements of all types were made, 85,412 representing placements
of men, and 50,347 being placements of women.
Placements in private nongovernmental jobs made up the bulk of
this activity, 91,876 being reported, 29 percent less than in December.
Men were placed in 43,606 of these jobs and women in 48,270. The
decline in the number of regular jobs from December to January was
much less than in the number of temporary jobs, the January total
being 10.7 percent less than the December total for the regular jobs,
but 38.3 percent smaller for the temporary jobs.
In addition to private placements the Employment Service made
41,803 placements in public nonrelief employment, practically all
being of men, and 2,080 assignments on relief jobs.
The number of active applicants on file in the Employment Service
rose by almost a quarter during January, reaching a total of 6,054,616.
Applications of 4,752,409 men were on file at the end of the month, a
gain of 24.5 percent during the month, and applications of women
numbered 1,302,207, a gain of 23.2 percent. The average increase in
the active file in the 22 new benefit-paying States during January was
35.9 percent, while the increase in the nonbenefit-paying States and
in Wisconsin, which had paid benefits previously, was slightly less
than 11 percent.
Increases in the number of new applications and the number of
veterans in the active file were smaller during January than for non­
veterans, while the decrease in the number of placements of veterans
was also less.
4 6 5 8 5 — 3 8 -------- 1 3


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

Monthly Labor Review- March 19'AH

760

Tables 1 and 2 summarize activities during January. Table 5 gives
a State-by-State report of unemployment compensation activities
carried on through the Employment Services for the 6-weeks period
ended February 12. State-by-State reports of Employment Service
operations for January follow.
T able 1.— Summary of Operations of United States Employment Service, January 1938
Percent of change from—
Number

Activity

Total applications____ . . .

__ . . .

. .

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

Total placements________________ ______________
Public ____________ .. _______________ _____
Active file___ . . .

_ _________ ___ _______ _____

1, 557,388
939, 708
617,680
135,759
91,876
41,803
2, 080
6,054,616

December
1937
+73.6
+107.9
+38.8
-24.0
-29.0
-10.4
-20.9
+24.2

January
1937
+136.3
+221.5
+68.4
-43.9
-36.2
-50.3
-85.1
-3 .6

January
1936
+76.9
+116. 7
+38.2
-74.0
+48.5
-56.4
-99.4
-33.3

T able 2.— Summary of Veterans’ Activities, January 1938
Percent of change from—
Activity

New applications. ................. . . . ....... ............. ........
Total placements..... ........... . . . _______________
Private______________ _____ _____________ ...
Public............................. ......................... .................
Active f i l e ............... ...


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

.

____ . . . . _ .................

Number

30,833
7,738
3,242
4,160
336
317,912

December
1937
+78.3
-21.1
-32.8
-11.0
+6.7
+18.5

January
1937
+159.4
-49.0
-51.5
-47.2
-44.4
-8 .2

January
1936
+96.5
-80.4
+8.7
-65.5
-98. 6
-42.2

Employment Offices
J. able 3.

761

Operations of United States Employment Service, January 1938
TOTAL
New applicacations

Placements
Private
Division and State

United States__

Public

Per­
Per­
cent
cent
Per­
Per­
of
of
cent
cent
Num­ change Jan. 31, change
Total
Tem­
of
of
from
1938
from
Num change Regular porary Num change ber
(over 1
De­
Dec.
(1
ber from month)
cem­
month ber from
31,
De­
De­
ber
or
less)
1937
cem­
cem­
ber
ber

_ 135, 759 91,876 -29.0

New England
Maine..............
New Hampshire.
Vermont.........
Massachusetts...
Rhode Island__
Connecticut.......
Middle A tlantic... .
New York.......
New Jersey____
Pennsylvania__
East North Central.
Ohio........ . .
Indiana ____
Illinois______
Michigan_____
Wisconsin___
West North CentralM innesota..
Iowa................
Missouri ____
North D akota...
South D ak o ta...
Nebraska..........
Kansas..............
South A tlan tic...
Delaware____
M aryland_____
District of Co­
lumbia........... .
Virginia_______
West V irginia...
North Carolina..
South Carolina. .
Georgia...............
Florida.............
East South Central.Kentucky.........
Tennessee...........
Alabama______
Mississippi____
West South Central.
A rkansas_____
Louisiana_____
Oklahoma....... .
T exas.................
M ountain.............. .
M ontana......... .
Id ah o .................
Wyoming...........
Colorado______
New Mexico___
Arizona_______
U tah_________
Nevada. _____
Pacific_______ ____
Washington___
Oregon________
California.. . . .

Active file

4,899 3,280
488
225
611
732
401
325
1,047
724
348
467
1,704 1,047
15,273 11,204
7,956 6,184
2,549 2,300
4,768 2,720
26, 807 20,355
6,870 5,100
2,049 1,887
12,164 9,205
2,318 1,676
3,400 2,487
15,120 10,055
3,204 2,564
3, 596 2, 470
3,160 2,176
1,222 1,083
952 489
1,444
735
1,542
538
17,327 8,234
429 340
1.263
725

-17.4
+49.0
-6 .9
-16.2
-17.4
-19.4
-28.5
-23.3
-28.1
-12.3
-19.8
-24.4
-27.5
-31.8
-20.4
-34.6
-16.8
-19.5
-24.3
-12.3
-1 .5
-40.0
-7 .2
-11.4
-40.7
-30. 6
-37.0
-28.3

1,974 1,485
2.264 1,329
1,034
620
3,362 2,010
1,046
229
4,491 1,496
1,464
0
7,159 2,798
1,545
773
1,954 1,305
1,749
557
1, 911
163
29, 459 23,136
1,536 1,194
3,251 2,190
2,371 1, 264
22,301 18,488
6, 826 3,850
779 453
599
740
336 234
984
2,038
842 435
1,274
705
154
278
539 286
12,889 8,964
1, 202 568
1,244
593
10, 443 7,803

-12.9
-31.0
-37.6
-37.4
-62.7
-19.6
-37.4
-27.8
-35.7
-52.3
-19.3
-36.9
-19.4
-40.6
-34.8
-37.5
-30.5
+10.8
+2.9
-20.7
-40.9
-2 .9
-38.4
-74.4
-28.3
-30.2
-39.7
-12.1
-30.5

39,059 52,817 41,803 -10.4 939,70S +107. 9 6,054,61C +24.2
1,966 1,314 1,498 -11.9 103,798 +67.7 595, 450 +30.2
120
105 263 -19.8 10,298 +67.8
42,974 +62.1
414
121 -26.2 12,088 +236.0
197
40, 740 +72.6
184
141
76 -78.9 5,309 +223. 5
18,039 +73.3
407
301 -18.2 26.329 +31.8 297,305 +12.4
317
189
159
77 -34.2 3,798 -61.0
53,910 +9.7
652
395 660 +82.3 45,976 +121.0 142,482 +71.1
5,093 6, 111 3,431 -23.7 284,681 +224.3 1,492, 512 +34.9
2,597 3,587 1,492 -33.2 185,915 +459. 8 466,080 +88.3
1,177 1,123
183 -53.3 16,766 +79.4 206,432 +13.0
1,319 1,401 1,756 -6 .1 282,000 +81.3 2 820, 000 +21.2
9,237 11,118 5,813 +11.0 122,555 +72.2 1,082,965 +12.2
2.407 2,693 1,411 -3 .9 31, 780 +94.0 322,804 +16.2
1,189
159 -40.7 13,109 +65.9 111,028 +8.1
698
3,566 5,639 2,907 +33.8 20,955 +23.5 315,414 +5.1
788
615 -10.4 36,679 +161. 6 182, 210 +23.3
888
1,287 1,200
821 +13.6 20,032 +25.9 151, 509 +10.8
4,960 5,095 4,867 -21.0 38, 512 +30.3 561,099 +9.8
1.407 1,157
632 -40.5 15, 024 +81.9 147,361 +27.5
1,100 1,370
940 -19.0 4, 582 -6 .2
67,398 +7.3
1,135 1,041
984 -34.7 9,996 +32.6 161,390 +6.3
513
139 -22.8 1,074 -5 .0
570
28,429 +5.6
169
320 459 -36.8 1,351 -13.2
50,352 -2 .4
396
339
709 -13.0 2,782 +8.9
44,744 +5.4
240
298 1,004 +41.8 3,703 +2.2
61,425 +2.3
4,253 3.981 8,856 -4 .0 142,433 +134.1 729,039 +38.3
138
202
87 +45.0 1. Ill +23.7
12, 292 +14.5
397
328
538 -15.7 16, 553 +12.6
78,567 +47.1
796
762
349
1,075
106
630
0
1,867
453
958
343
113
5,352
385
1,168
464
3, 335
1,865
188
270
76
495
304
313
51
168
4,466
325
320
3.821

689
567
271
935
123
866
0
931
320
347
214
50
17,784
809
1,022
800
15,153
1,985
265
329
158
489
131
392
103
118
4,498
243
273
3.982

489 +176.3
925 -47.1
380 +47.3
1,349 -16.5
816 -12.7
2,995 +11.3
1,277 +16.0
4, 328 -21.3
768 -46.9
649 -21.5
1.164 +28.9
1,747 -24.7
6.165 +10.7
219 -13.4
1,060 +57.0
1,106 +26.0
3,780 +0.4
2,924 -24.8
322 -57.1
141 -45.3
97 -28.7
1,042 -6 .0
402 -27.4
545 -25.3
122 -34.8
253 +57.1
3,921 -20.4
630 -48.8
651 -25.3
2,640 -6 .5

1 Includes 2,080 security-wage placements on work-relief projects.
* Partially estimated.


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

10.330 +366.8
42,983 +60.1
21.414 +365.7
78,311 +65.9
37,165 +432.4 134,177 +67.1
34, 597 +93.4 136, 722 +45.5
6,390 +117.5
61,882 +18.4
11,716 +34.7 115,440 +15.5
3.157 +62.7
68,665 +9.6
50,970 +81.6 429,780 +16.5
3.763 +47.7 105,702 +1.1
7,961 - 1.0 127, 383 +9.0
30.925 +145.9 125,838 +42.4
8,321 +69.7
70,857 +19.6
82.925 +87.2 481,347 +21.8
6,990 +104. 7
58,171 +22.4
19,125 +155.9
89,292 +37.8
6,174 +5.1 105,161 +7.2
50,636 +84.0 228,723 +23.8
18,185 +26.2 197,906 +15.2
1.764 +52.3
26, 598 +14.0
2,019 -7 .0
19,594 +9.7
669 +20.8
7,793 +22.0
4,930 +11.1
64,754 +9.7
1.414 +28.1
26,688 +9.8
3,891 +49.7
23,587 +28.2
2,671 +52.9
24,012 +30.4
827 +29.4
4,880 +19.1
95, 649 +77.1 484,518 +30.6
8,270 +2.1
84,646 +18.2
18,938 +102.1
79,473 +44.6
68,441 +87.3 320,399 +31.0

762

Monthly Labor Review—March 1938

T able 3.—Operations of United States Employment Service, January 1938—Continued
MEN
New applica­
tions

Placements
Private
Division and State

United States_____
New England......... .
Maine________
New HampshireV erm u n t_____
Massachusetts.-.
Rhode Island__
Connecticut___
Middle Atlantic.......
New York___
New Jersey____
Pennsylvania__
East North Central.
Ohio...................
Indiana_______
Illinois________
Michigan.......... .
Wisconsin...........
West North CentralMinnesota_____
Iowa_________
Missouri______
North D akota...
South D ak o ta...
Nebraska______
Kansas...............
South Atlantic____
Delaware............
M aryland_____
District of Co­
lumbia.............
Virginia..............
West Virginia...
North Carolina..
South Carolina..
Georgia.......... ....
Florida................
East South C entral..
Kentucky......... .
Tennessee.........
Alabama.............
Mississippi____
West South Central.
Arkansas______
Louisiana_____
Oklahoma—.......
Texas..................
M ountain..................
Montana............
Idaho_________
Wyoming_____
Colorado........... .
New Mexico.......
Arizona_______
U tah_________
Nevada...........
Pacific.................... .
Washington___
Oregon..............
California...........

Public

Per­
Per­
cent
cent
Per­
Per­
of
of
cent
cent Num­ change Jan. 31, change
Tem­
Total
of Regular porary
of
from
from
ber
1938
Num­ change (over 1
Num­ change
De­
Dec.
(1
ber from month) month
ber from
cem­
31,
De­
De­
ber
1937
or
less)
cem­
cem­
ber
ber
85,412 43, 606 -33.7

13, 998 29,608 39,886 -12.7 704,865 +107.3 4, 752, 409 +24.5

2, 6fU
357
438
219
5-15
219
883
6. 742
3,487
781
2,474
14, 252
3, 39E
691
7,007
1.317
1,835
9,648
1,765
2,311
1,896
676
728
1,037
1.235
11,874
157
724

584 1,283 -22.0 64, 763 +49.6 433, 950
691
69
28
260 -19.8 6, 508 +45.8
34, 641
141
184
HE -29.8 6, 976 +195.3
29,431
8(
67
72 -80.0 3, 59C +162. C 14, 418
119 296 -18.7 17,039 +16.7 216, 337
108
55
7?
62 -30 3 1, 992 -66.3
37, 336
120 480 +38.3 28, 658 +96.7 101,787
226
1, 722 1,718 2,690 -36.2 218, 572 +222. 0 1,164, 993
1,028 1,091 l,-088 -48.0 146,435 +474. 5 368, 748
208
324
183 -53.1 12,137 +72.7 166, 245
419 1,419 -18.0 260.000 +69.7 2 630,000
370
2,906 5,052 5,690 +11.3 98,149 +85.0 883, 536
946 1, 355 -5 .3 25,851 +101.9 265, 584
736
304
245
143 -44.1 9, 763 +79.0
90, 502
1, 340 2, 745 2,889 +34.4 14, 634 +25.3 250,496
454
24C
499 -12.8 33, 310 +187. 5 157, 698
345
603
804 +14.5 14, 591 +26.5 119, 256
1, 758 2, 906 4,788 -21.1 26,817 +26.6 455, 203
665
468
625 -40.0 10, 217 +63.8 117,483
425
786
914 -18.6 3,136 -11.0
54,963
345
569
982 -34. 7 7,323 +37.6 130,016
238
308
601 -7 .5
130 -26.6
22. 371
197 451 -37.2
77
910 -14.7
43, 285
137
202
698 -13.6 1.966 +9.8
36. 52«
179 988 +41.5 2,664 +2.9
68
50, 559
1,188 1,873 8,633 - 5 .2 105,591 +137. 0 549,459
41
28
792 +31.3
86 +43.3
9,373
94 499 -21.5 11,670 +5.5
131
62, 300

1, 275
97
325
147
227
135
346
3, 440
2,119
532
789
7,958
1,682
549
4,085
694
948
4, 664
1,133
1, 211
914
546
274
339
247
3, 061
69
225

790 336
544
1,459
474
126
2,045
728
927
116
917
3, 891
1,407
0
5,658 1, 377
1,045 307
566
1,204
1,579
419
1,830
85
21,701 15,466
1,098
763
2,352 1,298
1,576
509
16,675 12,896
4, 887 1,954
664 344
438 300
203
105
1,528
480
664
263
795 235
169
50
426
177
7, 989 4,411
888
264
925
302
6,176 3,845

-23.2
+38.6
-13.1
-10.4
-35.7
+9.0
-40.0
-35.1
-38.9
-29. 1
-27.1
-27.2
-38.6
-48.8
-17.4
-36.1
-13.1
-24.2
-29.0
-13.1
-8 .7
-44.3
-2 .8
-5 .8
-54.2
-42.4
-62.1
-51.3
-27.4
-43.2
-48.1
-55.4
-68.6
-8 .8

155
204
49
268
25
315

-41.2
-29.1
-43.1
-44.4
-46.5
-35.3
-22.4
-50.4
-51.2
-33.1
-35.3
+8.9
+8.7
-23.4
-43.8
-5 .7
-60.5
-81.4
-40.0
-38.1
-46.1
-30.9
-38.0

857
131
429
234
63
2,122
100
578
74
1,370
829
116
79
26
178
200
108
19
103
1,925
110
115
1, 700

181 454 -1-204.7
340 908 -46.9
77 316 +26.4
460 1,317 -17.4
91
810 -12.6
602 2, 974 +11.2
1,269 +15.3
520 4, 258 -21.7
176 734 -48.2
137 638 -22.7
185 1,142 +29.6
22 1,744 -24.8
13,344 6,078 +10.3
663
212 -15.2
720 1,053 +57.6
435 1,067 +25.7
11,526 3,746 +0.0
1,125 2,892 -24.7
228 318 -57.1
221
138 -45.7
79
94 -28.2
302 1,039 -5 .3
63 399 -27.5
127 537 -26.0
31
118 -35.5
74 249 +55.6
2,486 3, 574 -24.9
154 620 -48.7
187 623 -27.7
2,145 2,331 -13.2

i Includes 1,920 security-wage placements’on work-relief projects.


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

Active file

7,339 +412. 5
15,530 +368. 9
33,091 +493. 8
20,317 +75.8
5, 091 +120.6
9, 479 +29.3
2, 282 +66.9
37,846 +71.0
2,466 +48.3
5,499 -7 .3
23,325 +125.1
6, 556 +56.9
67,091 +102.0
5,789 +109.9
16, 379 +187. 8
4,646 +0.3
40, 277 +100.0
14, 497 +26.4
1,446 +57.0
1,705 -6 .3
509 +42.6
3,565 +6.5
1,080 +21.6
3,339 +53.9
2,182 +48.8
671 +34.2
71, 539 +65.4
6,931 -0 . 6
16,413 +96.1
48,195 +72.7

30,147
57,303
115, 831
91,504
45,985
86.300
50, 716
334,680
84, 515
99,368
99,130
51, 667
382,347
48,237
73,892
86,019
174,199
165,456
22,243
17, 542
6,450
51,857
22,150
20,542
20,533
4,139
382, 785
74,088
67,828
240,869

2 Partially estimated.

+27.9
+54.0
+63.2
+67.4
+12.0
+7.5
+63. 2
+33.3
+91.6
+12.9
+17.9
+14.2
+18.1
+9.0
+6.4
+27.3
+12.2
+9.9
+27. 2
+8.3
+7.0
+5.6
-2 .8
+5.0
+3.0
+40.9
+ 17.7
+46.5
+66.2
+73.5
+73.8
+42. 4
+20.9
+17.5
+10.5
+16.7
+1.0
+8.6
+42.9
+22. 5
+24.8
+24.1
+43.1
+7.7
+28.1
+17.0
+15.8
+11.3
+23.8
+10.9
+10.4
+33.3
+31.7
+20.3
+31.4
+19.2
+74.2
+31.5

Employment Offices

763

T able 3.—Operations of United States Employment Service, January 1938— Continued
WOMEN
New applica­
tions

Placements

Active file

Private
Division and State

Per­
Tem­
T o ta l1
cent of Regu­ porary
Num ­ change
lar
(1
ber
from (over 1 month
Decem­ month) or
less)
ber

United States.......... ......... 60,347

48, 270

-24.1

25,061

New England_____ ____
Maine_____________
New Hampshire.........
Vermont.................... .
Massachusetts..........._
Rhode Island..............
Connecticut________

2,238
131
294
182
602
248
881

2,005
128
286
178
497
215
701

-13.2
+58.0
+1.4
-20.5
-5 .2
-30.6
-21.1

1,275
92
230
117
299
111
426

Middle A tla n tic ..............
New Y ork_________
New Jersey......... ........
Pennsylvania............

8, 531
4,469
1,768
2,294

7, 764
4,065
1,768
1,931

-16.6
-20.7
-5 .6
-16.4

East North Central.......... 12,555
Ohio............................. 3,477
Indiana........................ 1,355
Illinois....................... . 5,157
Michigan..................... 1,001
Wisconsin_________
1,565

12,397
3,418
1,338
5,120
982
1,539

PerPercent of
cent of
Num ­ change Jan. 31, change
from
from
ber
1938
Decem­
Dec. 31,
ber
1937

23,209 234,843 +109.7 1,302,207
730
36
56
61
198
104
275

+23.2

39,035
3,790
5,112
1,719
9,290
1,806
17,318

+109.7
+126.4
+313.6
+534. 3
+72.7
-52.8
+178.2

161, 500
8.333
11,309
3,621
80,968
16, 574
40,695

+36.8
+107.7
+103.0
+102.1
+13.5
+14.9
+94. 7

3,371
1, 569
853
949

4,393 66,109
2,496 39,480
915 4,629
982 222, 000

+232.3
+411.3
+100.0
+123.1

327,519
97, 332
40,187
2 190,000

+41.0
+76.8
+13.6
+33.9

-22.5
-20.5
-21.0
-22.7
-33.4
-18.9

6,331
1,671
944
2,226
548
942

6,066
1,747
394
2,894
434
597

24,406
5,929
3, 346
6,321
3,369
5,441

+34.7
+65.6
+36.8
+19.5
+38.4
+24.4

199,429
57, 220
20,526
64,918
24, 512
32,253

+4.2
+8. 2
+4.5
+ .5
+2.7
+5.9

West North Central.........
Minnesota_________
Iowa__________ ____
Missouri___ _______
North Dakota______
South D akota.............
Nebraska____ _____
Kansas.......................

5,472
1,439
1,285
1,264
546
224
407
307

5,391 -14.9
1,431 -20.1
1,259 ’ -11.5
1,262
+4.4
537 -35.0
215 -12.2
396 -15.7
291 -20.9

3, 202
939
675
790
275
92
259
172

2,189
492
584
472
262
123
137
119

11,695 +39.7
4,807 +137.6
1,446
+6.0
2,673 +20.5
473
-1 .7
441
-9 .8
816
+6.7
1,039
+0.5

105,896
29,878
12,435
31, 374
6, 058
7,067
8,218
10,866

+9.2
+28.9
+3.3
+3.5
+5.7
+ .5
+6.9
-1 .0

South Atlantic..................
Delaware____ _____
M aryland....................
District of Columbia..
Virginia............. .........
West Virginia.............
North Carolina...........
South Carolina_____
Georgia........................
Florida......... ...............

5,453
272
539
1,184
805
560
1,317
119
600
57

5,173
271
500
1,149
785
494
1,282
113
579
0

-20.9
-24.3
- 8 .9
-7 .4
-19.0
-34.2
-18.6
—53.7
-32.2

3,065
97
266
641
558
300
807
81
315
0

2,108
174
234
508
227
194
475
32
264
0

36,842
319
4,883
2,991
5,884
4,074
14,280
1,299
2,237
875

+126.0
+8.1
+34.5
+283.0
+357. 5
+189.3
+125.4
+106.2
+63.9
+52.7

179, 580
2,919
16,267
12, 836
21,008
18, 346
45, 218
15,897
29,140
17,949

+30.8
+5.4
+49.5
+47.5
+48.2
+34.4
+52.0
+11.8
+10.2
+7.3

East South Central...........
Kentucky....................
Tennessee....................
Alabama......................
M ississip p i...............

1,501
500
750
170
81

1,421
466
739
138
78

-33.3
-26.8
-28.6
-66.7
+81.4

1,010
322
529
109
50

411
144
210
29
28

13,124 +121. 8
1,297 +46.7
2,462 +16.7
7,600 +245.3
1,765 +143. 8

95,100
21,187
28,015
26, 708
19,190

+15.6
+1.5
+10.5
+40.6
+12.5

West South Central..........
Arkansas___________
Louisiana...................
Oklahoma....................
Texas...........................

7,758
438
899
795
5,626

7,670 -39.9
431 -13.5
892 . -16. 6
755 -15.8
5, 592 -45.7

3,230
285
590
390
1,965

4,440
146
302
365
3,627

15, 834
1,201
2,746
1, 528
10,359

+43.0
+82.8
+54.2
+22.9
+40.2

99,000
9,934
15,400
19,142
54, 524

+11.5
+14.6
+16.8
+5.4
+11.7

M ountain...........................
M ontana.....................
Idaho...........................
Wyoming.....................
Colorado.....................
New M exico..............
Arizona........................
U tah............................
Nevada............ ...........

1,939
115
302
133
510
178
479
109
113

1,896
109
299
129
504
172
470
104
109

-24.8
+17.2
-2 .3
-18.4
-37.8
+1.8
-14.4
-68.7
+4.8

1,036
72
191
50
317
104
205
32
65

860
37
108
79
187
68
265
72
44

3,688
318
314
160
1,365
334
552
489
156

+25.4
+34.2
-10.3
-18.8
+25.2
+54.6
+28.1
+74.0
+12.2

32,450
4, 355
2,052
1,343
12, 897
4, 538
3,045
3,479
741

+6.8
+5.8
-2 .7
+13.8
+5.1
+7.1
+1.9
+23.4
+12.8

Pacific.................................
Washington.................
Oregon.........................
California.....................

4,900
314
319
4,267

4, 553
304
291
3,958

-20.5
-32.7
+22.3
-21.4

2,541
215
205
2,121

2,012
89
86
1, 837

24,110 +123. 8
1,339 +18.8
2,525 +152. 5
20,246 +134. 2

101, 733
10, 558
11, 645
79, 530

+27.6
+11.6
+31.2
+29.5

1 Includes 1,917 public placements and 160 security-wage placements on work-relief projects
1 Partially estimated.


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

764

Monthly Labor Review—March 1938
T able 4.— Operations of United States Employment Service, January 1938
VETERANS
New applica­
tions

Placements
Public

Private
Division and State
Per­
cent of
Total'
Num­ change Regular
from (over 1
ber
Decem­ month)
ber

Tem­
porary Num ­
(1
month ber
or less)

Per­
cent of Num ­
change ber
from
De­
cem­
ber

-32.8

988

2,254

471
23
22
8
51
35
332

81
6
15
7
15
13
25

-45.3
-45.5
-34.8
-12.5
-31.8
-13.3
-63.8

40
1
8
3
6
4
18

41
5
7
4
9
9
7

Middle Atlantic.........
New York______
New Jersey_____
Pennsylvania......

561
208
124
229

222
106
42
74

-36.4
-56.0
-6 .7
+17.5

106
40
21
45

116
66
21
29

232
90
19
123

East North C entral... 1,514
282
Ohio.....................
Indiana.................
61
913
Illinois.................
Michigan__ ____
99
159
Wisconsin______
West North Central . 1,142
189
Minnesota______
455
Iowa........... .........
Missouri_______
171
53
North Dakota__
64
South D akota___
91
Nebraska.............
119
Kansas.................
844
South Atlantic...........
Delaware..........
15
M aryland______
69
District of Co141
lum bia_______
Virginia........ ......
143
West Virginia___
48
North Carolina...
115
South Carolina...
66
174
Georgia________
53
East South Central...
361
Kentucky______
101
68
Tennessee______
Alabama_______
112
Mississippi_____
80
West South Central.. 1,179
78
Arkansas_______
Louisiana ____
167
Oklahoma....... .
171
763
Texas................ .
M ountain_________
589
72
Montana_______
Idaho__________
72
Wyoming______
23
15C
Colorado.______
New Mexico........
64
Arizona ____. . .
87
U tah__________
44
Nevada. ______
77
Pacific_______ _____ 1,077
101
Washington____
Oregon_________
226
750
California......... .

690
153
54
359
49
75
497
118
201
79
23
27
24
25
247
5
19

-21.9
-33.8
-33.3
- 9 .6
-39.5
-19.4
-21.1
-11.9
-15.9
+ 16.2
-57.4
-18.2
-17.2
-65.8
-38.3
-82.1
-58.7

220
57
16
110
14
23
120
31
32
23
12
9
8
5
76
0
7

470
90
38
249
35
52
377
87
169
56
11
18
16
20
171
5
12

793 +46.0
127 -34.5
7 -88.5
554 +211.2
34 -17.1
71 +2.9
526 -53.6
71 -23.7
135 -45.3
92 -84.3
30 +66.7
37 -32.7
67 +15.5
94 +22.1
592 +3.3
10 +900.0
50 -2 .0

42
68
15
32
3
63
0
74
21
17
31
5
659
56
74
83
446
234
32
52
17
47
12
41
6
27
538
27
34
477

-38.2
-2 .9
0
-56. 2
-85.7
-20.3

11
19
7
12
0
20
0
44
8
12
20
4
116
7
28
8
73
90
6
26
2
12
£
22
2
11
176
£
1C
157

31
49
8
20
3
43
0
30
13
5
11
1
543
49
46
75
373
144
26
26
15
35

99 +312. 5
74 -39.8
33 -31.3
83 -3 .5
53 +15.2
111 -19.6
79 +41.1
285 -31.0
78 -57.1
51 -33.8
81 -5 .8
75 +10.3
516 +4.7
21 -41.7
93 +52.5
88 +12.8
314 -1 .3
348 -7 .7
40 -50.0
2C -56.5
5 -61.5
102 +10. S
52 +26. S
41 -35. £
38 + 5 8 . a
50 +194.1
538 -9 .7
7£ -48.2
192 + 61. a
273 -18.8

-54.3
-57.1
-56.4
-52.3
-44.4
-38.6
-24.3
-52.9
-29.1
-38.5
-20.9
+77.8
+30. C
+21.4
-31.9
-20.0
-50.6
-70. C
-27.0
-38.9
—65.8
-17.1
-37.3

330 +65.0
17 -29.2
7 -66.7
1 -92.9
33 -8 .3
22 -56.0
250 +354. 5

a

1£
4

16
362
18
24

320

i Includes 336 security-wage placements on work-relief projects.


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

Per­
cent of
of
change Jan. cent
change
from
31,
from
1938 Dec.
De­
31
cem­
1937
ber

4,160 -11.0 30,833 +78.3 317, 912 +18.5

3,242

New England............
M ain e.................
New Hampshire—
Vermont_______
Massachusetts__
Rhode Island___
Connecticut.........

United S tates............ 7,738

Active file

2,881 +30.3 33,411 +17.4
279 +9.8 2,431 +37.4
393 +204. 7 2,133 +46.1
687 +52.0
135 +170.0
964 +4.0 19, 989 +7.8
89 -62.6 2,294 +10.1
1,021 +66.6 5,877 +41.9

-32.8 6, 345 +147.2 68,407
-39.2 3, 479 +440.2 16,945
-44. 1
611 +52.8 11,810
-24.5 2, 255 +48.1 39, 652

+24.3
+41.7
+ 10.7
+22.3

5, 275 +71.8
1,283 +82.8
593 +58.6
767 +20.6
1,791 +152. 3
841 +29.6
1,693 +31.6
514 +49.0
221 -5 .6
637 +60.5
46 +39.4
40 -2 .4
116 +16.0
119 -12.5
3,867 +112. 6
41 +115.8
496 +1.2

62,148
18, 580
6, 972
18,456
9, 664
8,476
35,825
9, 659
4,759
10,412
1,375
3,012
2, 757
3,851
31,731
640
4,114

+ 11.4
+ 16.0
+7.8
+5.6
+ 19.9
+9.4
+9.2
+18.6
+9.4
+ 10.0
+7.1
-2 .7
+5.1
+ .4
+30.0
+17.6
+37.0

418 +224. 0
639 +369. 9
1,020 +292. 3
563 +36.3
210 +180. 0
361 +45.0
119 +147.9
1, 534 +62.8
135 +82.4
305 -1 .6
850 + 107.8
244 +63.8
3,249 +147.4
275 +97.8
744 +172. 5
234 +7.8
1,996 +191.8
847 +10.7
111 +65.7
146 +4.3
38 +81.0
181 - 8 +
45 +104. 5
211 -6 .6
6£ -4 .2
46 +142.1
5,142 +54.9
488 +17. a
1,228 +75. 2
3,426 +55.5

2,989
3,074
5,889
4,073
2, 334
4,121
4,497
17, 202
4,498
5.762
4,972
1,970
22, 254
2,970
4,833
4,939
9,512
11,750
1,525
1,319
514
3,698
1,463
1,561
1,426
244
35,184
6,535
6,375
22, 274

+42.8
+72.7
+51.3
+26.6
+ 19.9
+13.5
+4.7
+14.4
“K 7
+9.1
+34.9
+22.6
+20.2
+16.2
+32.7
+6.1
+24.1
+16.9
+22.6
+10.0
+28.2
+12.1
+10.2
+26.4
+22. 0
+37.1
+24.9
+18.9
+33.9
+24.4

Employment Offices

765

T able 5. —Operation of the United States Employment Service in Connection With

Unemployment-Compensation Benefit Claims
[In the 23 benefit-paying States, Jan. 1 to Feb. 12, 1938]
Employment Service active file
State

U nemp 1o y m e n t-comp e n s a t i o n c la im s
received

Dec. 31,
1937

Feb. 12,
1938

T o ta l.................... .........

2, 726,562

4,026,396

+47.7

2,450,379

4,413, 207

A lab am a______ ____
A rizona........... .............
C alifornia.................
C o nn ecticu t________
L ouisiana......... ...........
M a in e........ . . , .............
M a ry la n d _____ ____
M assach usetts______
M in n eso ta...................
N ew H am pshire____
N ew Y o rk ...................
N orth C arolina.........
Oregon...........................
P en n sy lv an ia-............
R hode Isla n d .............
T en n essee.....................
T exas......... ...................
U t a h . ...........................
V erm on t___________
V irg in ia .....................
W est V irginia______
W isco n sin ....................
D istrict of C olum bia.

88,360
18,394
244,598
83, 286
64,816
26,513
53,404
264,421
115,566
23,607
247,507
93,989
54,945
676,466
49,162
116,839
184,747
18,408
10,407
47,204
80, 291
136,784
26,848

137,013
23,487
348,658
152,313
96,563
52,633
88,084
308,992
210,400
44,520
546,959
148,624
87,028
867,650
55,674
132,332
235,187
27,118
19,088
86,786
147,507
164,085
45,695

+55.1
+27.7
+42.5
+82.9
+49.0
+98.5
+64.9
+16.9
+82.1
+88.6
+121.0
+58.1
+58.4
+28.3
+13.2
+13.3
+27.3
+47.3
+83.4
+83.9
+83.7
+20.0
+70.2

65,504
7,706
149, 279
103, 661
24,153
33,279
82,461
223,120
70, 590
27,207
648,981
77,876
49,193
503,527
75,708
54,562
49,394
15,138
10,516
39,442
80, 741
38,338
20,003

144, 729
18,125
359,631
338,899
38,678
81,616
203,497
147,112
231,853
59,300
<3)
195,229
113,807
1,295,344
247, 719
170,187
89,945
37,262
30,125
93,492
244,074
226,990
45,593

Percent of
change

Original
claims i

Continued
claims 3

1 The applications of many of these claimants had not at the time of reporting been checked against Em­
ployment Service records or added to the active file.
2 This total represents the number of notices for continued claims filed since Jan. 1, and is therefore greater
than the number of claim series involved (original claims).
3 Not available.


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

Trend o f Employment and Pay Rolls

SUMMARY OF REPORTS FOR JANUARY 1938
NET DECREASES in employment and pay rolls were shown between
December and January in all manufacturing industries combined and
in the 16 nonmanufacturing industries surveyed monthly by the
United States Bureau of Labor Statistics. The estimated decline in
number of workers in these industries was 1,280,000, and in weekly
wage disbursements, $35,100,000.
There were approximately 1,300,000 fewer workers on the rolls of
these industries in January 1938 than in the corresponding month
of 1937 and their weekly wage bill was nearly $35,400,000 lower.
There was a decrease between December and January of 46,786 in
the number of workers on class I railroads (exclusive of executives,
officials, and staff assistants), according to a preliminary tabulation
by the Interstate Commerce Commission. This tabulation showed
947,374 workers employed in January.
Employment in the judicial and military services of the Federal
Government was greater in January than in the preceding month,
while decreases occurred in the executive and legislative services.
The growing unemployment in industry necessitated increases in
the number of workers engaged on projects operated by W. P. A.
Increases in employment also occurred on work projects of the Na­
tional Youth Administration and Student Aid. Decreases occurred
in the number of wage earners employed on Federal projects under
The Works Program, P. W. A. construction projects, projects financed
by the Reconstruction Finance Corporation, projects financed from
regular Federal appropriations, and State road projects. There was
a decrease in the number of workers in the Civilian Conservation
Corps.
Industrial and Business Employment
Almost all major lines of industry reporting to the Bureau showed
some reduction in the number of their employees and the amount of
their weekly pay rolls from December to January. In most cases the
reductions were greater than seasonal.
Manufacturing industries as a whole showed an estimated decline
over the month interval of 535,000 wage earners (7.2 percent) with a
shrinkage of $18,900,000 (11.5 percent) in weekly wage disbursements.
766

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

Trend of Employment and Pay Rolls

767

Although there are normally fairly marked declines in factory employ­
ment and pay rolls in January, the current declines are much more
pronounced than usual for the season and have been exceeded in
January in only one year (1921) during the past 18 years for which
data are available.
Compared with January 1937, factory employment showed a
decrease of 14.8 percent (1,195,000 workers) and weekly factory pay
rolls a decrease of 21.1 percent ($38,900,000).
Of the 89 manufacturing industries for which index numbers are
computed, 84 had fewer employees in January than a month earlier
and 83 had lower pay rolls. The reductions were much more pro­
nounced in the durable goods group of industries than in the non­
durable goods group. For the former group, the employment decline
was 10.9 percent and the pay-roll decrease 17.1 percent. The non­
durable goods group showed reductions of 3.6 percent in employment
and 5.0 percent in pay rolls.
Among the durable goods industries which reported the largest
employment declines over the month interval were automobiles (23.2
percent or 105,100 workers), blast furnaces, steel works, and rolling
mills (9.2 percent or 37,000 workers), foundries and machine shops
(7.9 percent or 31,000 workers), steam-railroad repair shops (10.7 per­
cent or 24,700 workers), electrical machinery, apparatus, and supplies
(8.4 percent or 19,600 workers), sawmills (7.2 percent or 14,800
workers), and furniture (8.1 percent or 10,400). Among the non­
durable goods industries having large reductions in force were cotton
goods (2.7 percent or 10,600 workers), knit goods (4.4 percent or
8,300 workers), silk and rayon goods (8.6 percent or 6,700 workers)
and newspapers (3.3 percent or 4,100 workers).
The five manufacturing industries which showed employment gains
over the month were millinery (13.6 percent), boots and shoes (6.5
percent), slaughtering and meat packing (2.1 percent), fertilizers
(1.2 percent), and chewing and smoking tobacco (0.6 percent).
All of these increases were seasonal in character except the one for
slaughtering and meat packing.
All but one of the 16 nonmanufacturing industries surveyed showed
decreases in employment and pay rolls between December and Janu­
ary. The exception was insurance, which showed gains of 1.0 percent
in employment and 0.8 percent in pay rolls.
The most pronounced employment decline in the nonmanufactur­
ing group was in retail trade, where a recession of 16.3 percent (642,000 employees) was due largely to the release of temporary workers
who had been employed for the holiday trade. Weekly pay rolls in
this industry fell 13.1 percent or nearly $9,700,000. While employ­
ment declines occurred in all of the 39 lines of retail trade surveyed,
with the exception of farmers’ supply stores and firms dealing in

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

768

Monthly Labor Review—March 1938

wood, coal and ice, the most pronounced loss (31.3 percent) was the
post-holiday reduction in force in the general merchandising group,
which consists of department, variety, and general merchandising
stores and mail-order houses. Other groups of retail trade establish­
ments showing marked recessions following the Christmas expansion
were jewelry (20.5 percent), apparel (19.4 percent), and furniture
(12.2 percent). Seasonal recessions, slightly more pronounced than
usual, occurred in lumber and building materials (6.2 percent) and
hardware (6.8 percent). Automotive establishments showed an em­
ployment loss of 4.3 percent, drug stores 2.4 percent, and food stores
2.5 percent.
Employment in wholesale trade establishments decreased 2.5 per­
cent. A loss in employment in wholesale trade between December
and January has occurred in each of the preceding 9 years for which
the Bureau has been collecting these data, but the decrease in the
present year is slightly more than any previously reported for the same
interval. The losses were general among the various lines of wholesale
trade surveyed. The most pronounced percentage declines in employ­
ment occurred in general merchandise (10.9 percent) and jewelry and
optical goods (18.9 percent). In most other lines of trade the declines
were not large. For the groups of wholesale dealers employing large
numbers of workers, employment recessions over the month interval
were as follows : Food products (2.4 percent), groceries and food special­
ties (0.9 percent), dry goods and apparel (3.7 percent), machinery,
equipment and supplies (1.4 percent), automotive (1.5 percent),
lumber and building materials (5.1 percent), electrical goods (2.8 per­
cent), chemicals and drugs (1.3 percent), metals and minerals (1.2 per­
cent), hardware (1.9 percent), paper and paper products (2.0 percent),
and furniture and housefurnishings (4.1 percent). Employment de­
clines were also reported by manufacturers’ sales branches (2.6 per­
cent), assemblers and country buyers (4.3 percent), and agents and
brokers (1.1 percent).
Private building construction firms reported seasonal declines of
14.2 percent in employment and 15.2 percent in pay rolls, which were
somewhat larger than the January recessions of the preceding 5 years.
Employment in the quarrying and nonmetallic mining industry fell
11.7 percent (largely seasonal) and in metalliferous mining, 4.4 percent.
Wage-rate decreases in the latter industry accounted in part for its
9.5-percent pay-roll decline. The employment decreases in the re­
maining nonmanufacturing industries ranged from 0.3 percent to 3.0
percent and were largely due to seasonal influences.
The 16 nonmanufacturing industries combined had approximately
749,000 fewer employees on their pay rolls in January than in Decem­
ber and paid out approximately $16,200,000 less in weekly wages.

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

Trend of Employment and Pay Rolls

769

According to a preliminary tabulation by the Interstate Commerce
Commission there were 947,374 employees on class I railroads, ex­
clusive of executives, officials, and staff assistants. This was 4.7
percent or 46,786 workers lower than the December figure. January
pay-roll totals were not available when this report was prepared. For
December, however, the wage disbursements were $151,025,582, a
decrease of 2.5 percent or $3,831,183 from November.
Hours and earnings.—According to reports covering both full- and
part-time employees, factory wage earners worked an average of 33.2
hours per week in January, which was 3.7 percent lower than the
December figure. Average hourly earnings for these workers were
66.3 cents, a decrease of 0.5 percent compared with December; and
average weekly earnings fell 4.6 percent to $21.88.
Of the 14 nonmanufacturing industries for which man-hour data
are available, only 2 showed gains in average hours worked per week.
These were telephone and telegraph (1.1 percent), and year-round
hotels (0.2 percent). Increases in average hourly earnings were
reported for 8 of the 14 industries and only 1 industry, retail trade,
showed higher average weekly earnings (3.9 percent).
Previous to January 1938, the wording of the definition of em­
ployees 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 re­
ports for other industries, and beginning with this month it was re­
quested 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 earnings which have been published for
these industries for December 1937 and prior months are not compara­
ble with the January figures. Comparable December data, however,
were secured and used in computing the percentage changes and
indexes presented in the following table.
This table presents employment and pay-roll indexes and average
weekly earnings in January 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.


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

770
T

Monthly Labor Review—March 1938

1.—Employment, Pay Rolls, and Earnings in All Manufacturing Industries
Combined and in Nonmanufacturing Industries, January 1938 (Preliminary
figures)

able

Employment
Percentage
change from—

Industry
Index,
January
1938

All manufacturing industries
combined 1............... - ...........
Class I steam railroads 2____
Coal mining:
Anthracite A....... ...............
Bituminous * ____ _____
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:
W holesale.........................
Retail.................................
General merchandisIng----------- ------- Other than general
merchandising____
Hotels (year-round)«4_______
Laundries «....... ........ ...............
Dyeing and cleaning *_______
Brokerage_______ _________
Insurance................. .... ...........
Building construction_______

De­
cem­
ber
1937

Januuary
1937

{ms-25
=100)

82.2
53.7

Average weekly
earnings

Pay roll
Percentage
change from—
Index,
January
1938

De­
cem­
ber
1937

Januuary
1937

Aver­
age in
Janu­
ary
1938

Percentage
change from—
De­
cem­ Janu­
ary
ber
1937 1937

(1923-25
-7 .2 -14.8
-4 .8 -10.8

= 100)

71.6 -11.5 -21.1
(3)
(3)
(3)

-4 .6
(3)

-7 .3
(3)

46. 5 -9 .3
+. 3
70.2 -26.1 -24.9
59.0 -9 .5 +1.0

25. 27 —6. 5
19. 26 -24.1
27.80 -5 .3

+9.9
-19.0
+ .2

38.8 -11.7 -15.2
75.6 -1 .2 +3.9

28.2 -15.6 -18.7
68.0 -2 .5 +11.1

18. 66
33. 70

77.8

- .3

+4.5

93.8

- .9

+12.2

94.0

-2 .2

+2.0

98.9

-3 .4

+7.1

72.2

- .8

70.9

{1 9 2 9 =
100)

59.6
96.8
67.3

-3 .0
-2 .6
-4 .4

-8 .7
-7 .3
+ .8

- .3

90.9 -2 . 5
84.1 -16.3

+ .2
-1 .5

91.5 -37.3

-3 .8

82.5 -7 .2 -1 .0
- . 6 +1.5
94.3
96.7
- . 3 -1 .6
96. 7 -2 .5 -2 . 1
-1
.9 -10.6
(3)
+ 1.0 +2.4
(3)
-14.2
-16. 5
(3)

{1 9 2 9 =
100)

$21.88
(3)

-4 .4
-1 .3

-4 .1
+7.0

4 31.02

- .6

+7.4

3 33. 47

-1 .3

+5.0

-1 .4

+4.3

3 32.11

- .6

+4.7

75.3 -3 .1
70.1 -13.1

+3.8
+3.1

3 28. 95
3 21. 43

- .6
+3.9

+3.6
+4.8

84.6 -31.4

+ .9

3 18. 37

+9.4

+4.8

67. 1 -6 .5 +3.7
81.5 -1 .3 +7.0
80. 1 -1 .2 +2.4
65.3 -4 .8
-3 .4 -12.6
(3)
+•8 +3.8
(3)
-15.2
-12.3
(3)

3 23. 92
3 14. 90
17.04
18. 66
3 36. 23
3 37. 38
28.36

+ .8
- .7
- .9
-2 .4
-1 .5
- .2
-1 .2

+4.8
+5.4
+4.1
+3.0
-2 .2
+1.4
+5.1

1 Indexes adjusted to 1933 C ensus of M anufactures.
2 Prelim inary. Source: Interstate Commerce C om m ission.
3 N o t available.
* Indexes adjusted to 1935 C ensus and not com parable w ith previously pub lished indexes or indexes
appearing in table 1 of th e following section (“ D etailed R eports for Industrial and B usiness E m p lo y m en t,
D ecem ber 1937”). T h e com p letely revised series w ill be presented in th e next issue of this p ublication.
In th e m eantim e, th ey are available in m im eograph form on request.
5 Average w eek ly earnings n ot strictly com parable w ith previously published figures as th e y now exclude
corporation officers, executives, and other em ployees w hose d uties are m a in ly supervisory. Sim ilarly not
com parable w ith average w eek ly earnings show n in table 1 of the following section (“ D etailed R eports for
Industrial and B usiness E m p loym en t, D ecem ber 1937”).
3 Cash p aym en ts only; the additional valu e of board, room, and tip s cannot be com puted.

Public Employment
In the period from mid-December to mid-January, approximately
97,000 wage earners were working on P. W. A. construction projects,
a decrease of 8,000 as compared with the preceding month. Of the
total number of employees 29,000 were working on Federal and nonFederal N. I. R. A. projects and 68,000 on projects financed from
E. R. A. A. 1935, 1936, and 1937 funds. Pay-roll disbursements on
all P. W. A. projects amounted to $7,837,000.
There were 154,000 workers employed on construction projects
financed from regular Federal appropriations. Compared with the

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

Trend of Employment and Pay Rolls

771

period ending in mid-December this represents a decrease of 27,000.
The decrease was caused largely by seasonal curtailment in road build­
ing. Employment decreases occurred on nonresidential building
construction projects, Rural Electrification Administration projects,
public roads, reclamation, river, harbor, and flood control, streets and
roads, water and sewerage, and miscellaneous projects. Small in­
creases in employment were reported for all other types of projects.
Pay-roll disbursements for January totaled $15,706,000, a decline of
$1,457,000 compared with the preceding month.
For the period from mid-December to mid-January 3,700 workers
were employed on construction projects financed by the Reconstruc­
tion Finance Corporation. Decreases in employment occurred on
building construction and water and sewerage projects, while an in­
crease was registered in the number working on miscellaneous projects.
Pay-roll disbursements amounted to $549,000.
Nearly 227,000 more workers were engaged at the site of projects
under The Works Program in January than in December. The ne­
cessity for this increase was the growing unemployment in indus­
try. Employment on projects of The Works Program during January
totaled 2,507,000. Of this number 158,000 were working on Federal
projects, 1,898,000 on projects operated by the Works Progress
Administration, and 451,000 on works projects of the National Youth
Administration and on Student Aid. Total pay rolls for The Works
Program were $105,477,000, an increase of $6,497,000 over December.
Increases in employment in the regular services of the Federal
Government were reported in the judicial and military services, while
employment in the executive and legislative services decreased. Of
the 811,000 employees in the executive service in January, 113,000
were working in the District of Columbia and 698,000 outside the
District. Approximately 84.7 percent of the total number of em­
ployees in the executive service were paid from regular appropriations
and 7.4 percent from emergency funds. Day labor hired by the
Federal Government for construction work (force-account) was 7.9
percent of the total employment in the executive service. The most
marked increase in employment occurred in the Social Security Board.
Among the departments reporting decreases were the Post Office
Department, the War Department, and the Department of Agricul­
ture.
The number of workers employed in the Civilian Conservation
Corps was 335,000, which was approximately 3,000 fewer than in
December. Decreases in employment were registered for all classes
of workers with the exception of nurses. Virtually no change occurred
in the number of nurses employed. Of the total number employed
in camps during January 290,000 were enrolled workers, 5,000 reserve

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

772

Monthly Labor Review—March 1938

officers, 300 nurses, 1,600 educational advisers, and 38,000 supervisory
and technical employees. The monthly pay roll for all classes of
workers was $15,444,000.
Approximately 142,000 workers were engaged on State road con­
struction projects during the month ending January 15, a falling-off
of 28,000 compared with the mid-December period. Of the total
number employed, 15,000, or 10.8 percent, were working on new
roads and 127,000, or 89.2 percent, on maintenance and repairs to
existing roads. January pay-roll disbursements for both types of
work totaled $9,577,000.
A summary of Federal employment and pay-roll statistics for
December 1937 and January 1938 is given in table 2.
T able 2.—Summary of Federal Employment and Pay Rolls, January 1938 1

(Preliminary Figures)
Employment
Class
January
1938

Pay rolls

Percentage
Decem­ change
ber 1937

Federal services:
Executive2___________________ 811,481 3 890,603
Judicial.___ ______ ________ __
2, 034
2, 008
5,183
Legislative________________ __
5,188
M ilitary_____________________
328,643
326,667
Construction projects:
Financed by P. W. A.4_________
104, 718
96, 725
Financed by R. F. C.5___ ____
3,739
3, 977
Financed by regular Federal
appropriations______________
153,864
180,864
Federal projects under The Works
Program________________ _ ___
157,827
186,133
Projects operated by W. P. A_____ _ 1,898,162 1,668,085
National Youth Administration:
Work projects _______________
144,797
137,929
Student Aid_______________
306,341
288,131
Civilian Conservation Corps_______
335, 244 338,217

January
1938

December
1937

Percentage
change

-8 .9 $122,861, 647 3$137,345,103
+1.3
518,126
514,920
-. 1
1, 201,451
1, 209, 723
+ .6
25,183, 692
25, 856,294

-10.5
+ .6
- .7
- 2 .2

-7 .6
-6 .0

7,836, 628
549, 058

-12.8
- .9

-14.9

15, 705,838

17,162,379

-8 .5

-15.2
+13.8

7,973,494
92,960,662

10,173,186
84,570,148

-21.6
+9.9

+5.0
+6.3
- .9

2, 549,914
1,992,810
15,444, 235

2,397,423
1,839, 242
3 15,824,325

+6.4
+8.3
-2 .4

8,989, 667
554,040

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 104,180 employees and pay-roll disbursements of $12,690,435 for January 1938 and 109,949 em­
ployees and pay-roll disbursements of $13,409,327 for December 1937.
3 Revised.
4 Data covering P. W. A. projects financed from E. R. A. A. 1935, 1936, and 1937 funds are included.
These data are not shown under The Works Program. Includes 67,967 wage earners and $5,176,438 pay­
roll disbursements for January 1938; 70,228 wage earners and $5,685,040 pay-roll disbursements for December
1937 covering P. W. A. projects financed from E. R. A. A. 1935, 1936, and 1937 funds.
‘ Includes 113 employees and pay-roll disbursements of $9,991 for January 1938 and 116 employees and
pay-roll disbursements of $9,760 for December 1937 on projects financed by the RFC Mortgage Co,


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

Trend of Employment and Pay Rolls

773

DETAILED REPORTS FOR DECEMBER 1937
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 December, insofar as industrial and business employment
is concerned, are reproduced in this section of the Monthly Labor
Review.
Figures on employment and pay rolls are available for the following
groups: 89 manufacturing industries; 16 nonmanufacturing indus­
tries, including private building construction; and class I steam rail­
roads. 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 industries the samples are large
enough to be entirely representative. The figures on class I steam
railroads are compiled by the Interstate Commerce Commission and
are presented in the foregoing summary.
EMPLOYMENT, PAY ROLLS, HOURS, AND EARNINGS

Indexes of employment and pay rolls as well as average hours
worked per week, average hourly earnings, and average weekly earn­
ings for October, November, and December 1937, are presented in
table 1. The October and November figures may differ in some
instances from those previously published because of revisions neces­
sitated by the inclusion of late reports and other causes.
Average weekly earnings shown in table 1 are computed by dividing
the total weekly pay rolls in the reporting establishments by the total
number of full- and part-time employees reported. As 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 com­
position 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 the following table are not
strictly comparable from month to month. The sample, however,
is believed to be sufficiently adequate in virtually all instances to
indicate the general movements of earnings and hours over the period
•shown.


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

Pay Rolls, Hours, and Earnings in Manufacturing and Nonmanufacturing Industries, December, November, and October, 1937
MANUFACTURING

774

T a b l e 1.— Employment,

[Indexes are based on 3-year average 1923-25=100 and are adjusted to 1933 Census of Manufactures. Not comparable to indexes published in pamphlets prior to October 19S6. Com­
parable series available on request]
Employment index
Industry

All manufacturing industries...................... .............
Durable goods__________________________
Nondurable goods___ ___________________

Pay-roll index

Average weekly
earnings 1

Average hours worked
per week i

Average hourly
earnings 1

Decem­ Novem­ Octo­ Decem­ Novem­ Octo­ Decem­ Novem­ Octo­ Decem­ Novem­ Octo­ Decem­ Novem­ Octo­
ber
ber
ber
ber
ber
ber
ber
ber
ber
ber
ber
ber
ber
ber
ber
1937
1937
1937
1937
1937
1937
1937
1937
1937
1937
1937
1937
1937
1937
1937
C en ts

C en ts

39.1
35.9

72.9
60.0

73.3
59.6

73.0
59.6

32.6
30.7
32.3
33.5

37.0
35.7
38.2
34.4

76.1
82.8
68.9
58.1

76.3
82.8
69.2
58.5

76.8
83.7
68.0
57.7

37.5
33.7
32.2
32.3

38.9
35.6
35.4
33.6

40.4
39.5
39.3
39.0

61.2
73.3
67.2
67.9

60.2
74.1
69.4
66.8

60.6
73.3
69.3
66.4

26.24
25.59
29.04
23.85

32.8
33.3
38. 4
37.6

33.1
32.3
39.3
37.5

37.7
39.3
40.9
38.6

69.6
65.4
72.0
62.2

69.8
65.5
71.4
61.9

69.4
65.4
71.2
62.0

22.95
23.00

24. 20
26. 79

35.2
31.5

36.7
33.5

39.0
37.9

62.2
68.2

62.2
68.7

61.9
70.8

27.25
27. 67

27. 79
28.74

28.86
30.14

36.9
37.3

37.9
38.9

39.9
40.6

73.1
74.4

72.6
74.1

72.0
74.5

33. 05
27.01
31.32
26. 47
31.03

32.61
27. 74
32. 38
27.12
31.63

33.61
28. 65
32. 36
28. 69
33.31

39.6
36.1
37.9
37.0
42.2

39.7
37.2
39.3
38.3
42.9

41.1
39.0
39.4
40.6
45.1

84.1
74.8
82.9
71.3
73.5

82.7
74.6
82.8
70.8
73.8

82.5
73.6
82.5
70.6
73.9

88.6

94.7

100.5

80.9

89.5

100.1

$22.93

$23.92

$25.39

34.4

35.4

37.6

84.3
93.3

92.4
97.3

97.6
103.6

77.0
85.8

89.9
89.0

101.7
98.2

24.95
20. 68

26. 80
20. 54

28. 83
21.37

34.4
34.3

36.4
34.4

90.0
99.6
73.5
60.2

98. 1
108.6
80.5
57.9

105.8
117.5
84.8
62.1

71.9
75.5
66.1
44.3

85.7
92.9
78.7
42.6

108.8
118.9
96.9
46.3

22.49
22.47
20. 39
19. 65

24. 64
25.33
22. 34
19. 68

28. 50
29.96
25. 94
19. 98

30.1
27.3
29.7
33.7

83.9
60.6
84.0
79.8

88.3
64.7
91.5
89.6

89.8
71.6
94.4
93.6

74.6
49.0
80.6
55.3

80.5
55.8
99.9
63.5

85.9
67.6
114.5
76.2

22.32
24. 60
21. 63
21.96

22.94
26.22
24.55
22. 45

24. 06
28.86
27. 26
25.83

61.8
77.2
69.5
91.3

66.3
91.1
75.0
96.8

73.5
108.3
79.1
100.8

49.1
56.0
68.2
94.4

53. !
65.0
74.5
99.8

66.6
94.2
81.6
107.5

22. 90
21.26
27. 59
23.10

23.18
21.02
27. 99
23. 07

87.6
161.2

91.7
179.5

97.0
187.2

82.4
136.1

90.3
162.3

100.7
202.3

21. 96
21.47

113.1
139.6

121.4
143.0

128.9
150.5

110.6
173.5

121.2
184.5

134.2
203.5

129.0
104.7
141.2
98.1
148.1

133.6
113.1
147.8
104.8
153.9

136.3
119.3
152.5
110.4
157.7

137.9
102.9
143.6
93.0
149.0

141.2
114.3
155.0
101.8
157.9

148.4
124.8
159.4
113.5
170.3

66.6

66.7

C en ts

66.6

D u r a b le goc-ds

Iron and steel and their products, not including
machinery________________ ________ ___
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_____ _________________
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)________________________
Wirework______________________________
Machinery, not including transportation equip­
ment_______ _____ ______________ _______
Agricultural implements__________________
Cash registers, adding machines, and calcu­
lating machines________________________
Electrical machinery, apparatus, and supplies..
Engines, turbines, tractors, and water wheels..
Foundry and machine-shop products_______

Machine tools_______________________ ____

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

?

3
3“
a
©©
-i

2

i
s3Ki
Oo
CO

46585 — 38 -

124.0
73.7
127.0
105. 5
781.0
112.9
55.8
59.5
104.8
52.7
63.5
51.9
98.9
114.1
97.0

156.7
77.7
138.4
121.8
795.0
133.2
65.8
61.6
105.9
57.4
63.1
57.0
108.4
123.5
105.5

200.5
82.8
147.9
122.7
784.0
133.9
67.9
64.1
106.8
59.0
63.3
58.7
112.7
104.7
113.1

98.7
63.4
106.6
92.4
700.7
90.8
65.0
53.7
126.5
55.7
70.1
54.7
86.5
110.7
80.3

725.3
125.8
81.1
51.4
121.4
63.3

115.3
89.9
87.1
76.1
85.3
122.6
58.1
74.5

125.0
100.3
95.6
79.3
88.0
144.0
63. 5
79.5

127.5
106.4
100.1
80.8
92.1
154.0
69. 5
86.8

47.6
42.8
63.2
41.1
60.5
100.0
38.0
74.1

51.2
47.6
68.2
45.5
66.1
106.7
42. 1
76.9

88.2
84.0
78.3
89.0
84.9
105.3
83.5
103.3
63.2
61.1

92.0
87.2
85.7
91.1
91.2
108.8
83.0
111.9
67.6
59.8

63.0
99.9
127.8
92.1

165.5
80.9
128.4
129.9
723.0
138.3
82.5
56.0
124.4
64.9
68.0
64.9
109.9
115.9
106.7

20.90
23. 53
22.40
27.40
28.06
26.44
27. 93
35.15
32. 69
30.48
31.38
30. 33
23. 49
24.18
23. 36

20.74
24.50
20. 43
31.03
27.89
31.23
29. 61
32.47
31.02
31.61
30. 63
31.78
24. 63
25.82
24. 77

21.67
26.26
23.17
33.37
28.17
34.07
29.13
34.08
31. 54
31. 58
30.46
31.76
26.18
27.63
26.76

33.2
35.7
35.2
31.2
39.8
29.2
36.9
43.5
37.9
41.5
44.8
41.2
35.1
35.3
31.9

33.2
37.0
32.5
35.1
39.7
34.3
38.5
41.4
36.9
43.0
43.6
43.0
37.3
38.5
33.7

35.6
39.3
37.0
37.7
40.6
37.3
38.9
44.0
37.3
43.2
43.7
43.2
39.7
40.4
36.7

63.0
66.1
63.7
88.1
70.4
90.5
75.7
80.8
85.0
73.3
68.6
73.7
66.5
68.6
73.0

62.5
66.6
62.7
88.9
70.2
91.3
76.9
78.5
83.8
73.6
68.5
74.1
65.9
67.2
73.4

61.1
67.2
62.6
88.6
69.5
91.4
74.8
77.4
83.0
73.4
68.0
73.8
65.8
68.4
73.0

105.3
70.6
72.1
67.7
80.2
114.7
48.4
60.0

122.3
78.8
94.4
72.6
83.8
141.5
55.1
65.8

132.7
89.4
104.3
80.7
90.9
156.4
65.3
76.8

20. 72
23. 53
21.31
24.18
27. 73
21.69
18. 62
19.27

22. 22
24.09
25.07
24.84
27.90
22. 76
19.48
19.66

23.62
25.80
26.18
27.10
29.10
23. 70
21.23
21.11

35.4
38.2
31.7
37.7
40.2
35.0
36.3
36.0

38.6
40.3
38.3
38.8
39.9
37.1
37.2
37.0

41.1
43.2
39.9
42.4
41.7
39.1
40.3
40.4

58.5
61.3
67.5
64.1
69.0
61.8
51.3
53.7

57.6
58.9
65.4
64.1
69.8
61.2
52.8
53.2

57.5
59.2
65.7
64.3
69.8
60.6
53.3
52.4

54.3
52.7
71.4
50.0
69.2
109.9
43.4
78.6

42.8
33.9
54. 5
30.858.0
95.8
30.8
59.7

46.3
40.4
63.6
36.4
67.3
111.9
34.6
70.0

51.7
49.4
69.6
44.2
72.2
119.2
37.8
72.9

20.38
17. 56
21.86
17.95
24. 34
23.01
23. 64
21.19

20.58
18. 99
23. 71
19.18
25. 73
25. 21
23.88
24.05

21.90
21.13
24. 74
21.19
26. 34
26.10
25.37
24.29

37.0
36.4
33.8
33.8
36.1
32.4
35.1
34.9

37.7
37.3
36. 5
35.8
38.2
35.8
36.2
37.9

40.2
40.2
38.7
39.6
39.1
37.5
38.7
39.8

55.2
48.8
64.9
53.5
67.4
71.2
67.5
63.1

54.7
52.0
64.4
53.4
67.4
70.5
66.3
63.1

54.5
53.6
63.9
53.3
67.3
70.0
66.2
62.1

98.8
91.9
88.7
93.9
98.4
112.2
83.0
116.3
75.4
68.4

68.7
68.9
54.4
74.1
74.9
86.5
64.9
95.1
48.1
49.6

71.5
71.5
49.7
76.8
79.0
89.0
61.0
112.3
50.8
42.8

84.2
81.0
64.2
85.1
96.8
94.6
62.0
122.8
62.4
52.8

15.42
15. 36
16. 50
13.13
16. 47
19.81
21.13
16.00
14. 75
18.69

15.37
15.24
13. 77
13. 25
16.10
19.87
19.96
17.40
14. 54
16.43

16. 87
16.45
17.07
14. 30
18. 35
20.49
20.20
18. 33
16. 02
17.73

30.3
31.4
25.6
30.9
33.5
34.0
30.8
31.7
32.0
31.7

30.6
31.5
21.2
31.5
33.1
34.4
28.2
33.7
31.7
27.7

32.8
33.6
26.4
33.7
37.1
35.3
26.7
35.6
34.2
30.3

51.1
49.0
64.4
42.3
50.0
58.0
70.6
51.3
46.0
59.2

50.9
49.2
64.9
42.1
50.0
57.6
71.6
52.4
46.2
59.4

52.1
49.4
64.6
42.4
50.3
57.5
72.4
52.3
46.9
58. 6

123.0
70.2
106.0
120.0

68.2

N o n d u r a b le goods

Textile and their products...................
Fabrics......................... ........ ..........
Carpets and rugs....................
Cotton goods.........................
Cotton small wares___ _____
Dyeing and finishing textiles.
Hats, fur-felt...........................
K nit goods...................,...........
Silk and rayon goods_______
Woolen and worsted goods...
See footnotes at end of table.


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

Trend of Employment and Pay Rolls

Radios and phonographs........... ....................
Textile machinery and parts_____ _____ _
Typewriters and p arts............... ....................
Transportation equipment____ _______________
Aircraft........... ....................................... ..........
Automobiles................ ....................................
Cars, electric- and steam-railroad—.................
Locomotives____________________..............
Shipbuilding________________________ _
Railroad repair sh o p s .........................................
Electric railroad.................... ........... ................
Steam railroad...................................................
Nonferrous metals and their products____ _____
Aluminum manufactures.......... ......................
Brass, bronze, and copper products..... .........
Clocks and watches and time-recording de­
vices.._____ _________________________
Jewelry________________ ___________ ___
Lighting equipment_____________________
Silverware and plated w a re .._____ _______
Smelting and refining—copper, lead, and zinc.
Stamped and enameled w a re ...._________
Lumber and allied products_________________
Furniture_________ _______ ___________
Lumber:
Millwork....................................................
Sawmills.............. ..................... ............
Stone, clay, and glass products__________ ____ _
Brick, tile, and terra cotta__________ _____
Cement______________________ _____ _
Glass____ _____________ _______ _______
Marble, granite, slate, and other products__
Pottery............................................................ .

•^1

Cn

T able

1.—Employment, Pay Rolls, Hours, and Earnings in Manufacturing and Nonmanufacturing
1937—
Continued

Industries, December, November, and October

cr'

MANUFACTURING—Continued
Employment index
Industry

Pay-roll index

Average weekly
earnings

Average hours worked
per week

Average hourly
earnings

N o n d u r a b le goods —Continued

Textile and their products—Continued.

Chewing and smoking tobacco and snudi____

Printing and publishing:
Chemicals and allied products, and petroleum
Other than petroleum refining........ ...... ..........

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

95.6
84.0
131.0
87.6
118.8
44.1
106.3
81.8
83.8
78.6
107. 3
131.6
187.4
81. 6
89.1
87.2
75.1
63. 7
90.9
146.1
75.0
60. 8
56.9
61.2
104. 1
96.9
109.4

101.0
90.7
134.9
88. 1
130.4
43.8
114.6
80.3
80.8
82.9
114.6
135.2
194.3
83. 7
118.7
91.8
76.0
65.1
90.5
252.1
70.4
62.9
56.7
63.6
106.4
103.3
113.6

112.1
103.5
150.4
89.7
135.9
52.0
120.7
89.5
90.7
89.6
125.0
138.4
202.7
86.4
185.9
95.5
76.9
68.8
89.4
253.0
68.8
62.6
56.2
63.3
107.9
104.8
117.3

65.2
55.5
86.0
79.7
89.8
27.4
87.3
58.4
53.2
78.5
110.4
127.4
202.0
65.8
86.6
86.8
74.0
60.4
104.7
135.8
72.4
55.7
67.9
54.2
100. 8
92.8
98.8

68.6
61.1
84.2
82.1
103.8
26. 7
102.6
53.8
46.0
82.7
115. 9
130.3
212.7
67. 2
111.4
89.8
76.7
61.5
102.3
267.4
66.8
57.2
63.8
56.4
101.5
102.6
105.4

87.0
80.2
110.1
87.3
111.8
35.5
112.5
66.3
58.7
95.0
125.0
137.3
222.4
70.3
187.7
98.4
80.9
63.9
100.1
224.3
64.2
57.9
68.2
56.6
105.1
108.9
116.7

98. 0
106. 6

98.3
107.0

98.8
107.5

95.9
108.4

93.1
106.1

92.6
107.3

118. 3
115.4

122. 7
122. 4

126. 5
126.7

124.4
120.3

132. 1
129.6

137. 5
136.1

C en ts

55.3
62.4
56.8
46.7
36.6

C ents

54.3
61.1
55.5
46.0
37.3

C ents

57.4
62.1
61.7
47.8
37.6

$15. 60 $15. 74
15.82
15. 61
17. 25
17. 85
14. 85
15. 52
14.36
13.16
18.00
17. 40
12.11
13.14
16.61
15. 48
13.72
15.25
22. 23 22:13
24. 46
24. 93
25.22
25.10
31.65
32.22
22.27
22.42
16. 22
15.74
18.11
17.63
26.10
25. 52
29.25
29.16
28.89
28.31
21. 98
25. 09
26.41
26.87
16. 88
16. 72
18.11
17.06
16. 62
16.66
27. 62
27.48
19.78
20. 42
22.47
23.26

$17. 99
18.14
20.29
16.17
14. 79
20. 30
13.97
17.14
15.50
23.60
23. 77
25.84
32. 36
22.71
16. 24
18. 62
27.30
28. 54
28.01
20.97
25.97
17. 03
18.20
16.80
23. 26
21.35
24.90

28.2
25.2
29.4
32.0
31.5

28.9
26.1
29.2
33.6
32.8

31.3
29.5
31.2
33.3
35.6

30.2
31. 1
30.1
35.2
40.5
41.4
37.9

33.1
28.6
26.9
35.2
40.3
41.4
38.8

34.7
31. 8
30.4
37.5
40.9
43.0
39.2

41.0
53.6
51.1
63.8
61.2
61.3
84.4

40.4
54. 5
52.3
62.8
60.2
61.1
84.2

40.8
54.2
51.9
63.3
58.8
60.6
83.5

33.6
39.7
42.7
46.6
42.2
40.4
43.0
37.1
35.8
37.3
37.6
37.3
35.6

33.8
38.7
43. 7
46.5
41. 1
49.6
40.9
37.4
33.5
37.9
37. 7
39.0
36.9

36.3
41.3
45.6
46.1
40.8
41.6
38.5
37. 6
35.8
37.9
38.7
40.8
39.5

49.6
45.6
58.9
61.7
68.0
55.6
60.8
45.5
51.1
44.9
76. 5
53.4
63.1

47.8
45.6
58.8
61.3
68.1
50.8
62.8
44.9
51.1
44.2
75.7
52.8
63.2

46.5
45.5
59.0
60.1
68.8
52.4
66.8
45. 1
51.3
44.4
75.6
52.7
63. 1

30. 75
38.45

29. 96
37.42

29.71
37.59

39.7
37.7

38.7
37.1

38.3
37.1

78.3
99.1

78.5
97.1

78.5
97.4

27. 93
25.06

28. 07
25.59

28. 32
25.99

38.0
38.5

38.5
39.5

39.2
40.3

74.3
66.2

73.8
65.8

73 4
65. 4

Monthly Labor Review—March 1938

Decem­ Novem­ Octo­ Decem­ Novem­ Octo­ Decem­ Novem­ Octo­ Decem­ Novem­ Octo­ Decem­ Novem­ Octo­
ber
ber
ber
ber
ber
ber
ber
ber
ber
ber
ber
ber
ber
ber
ber
1937
1937
1937
1937
1937
1937
1937
1937
1937
1937
1937
1937
1937
1937
1937

122.6
109.9
110.5
94.7
81.6
121.1
336.8
94.6
120.2
86.0
68.0

129.8
121.0
112.5
95.4
75.3
128.0
374.0
100.4
123.9
90.9
71.9

135.2
127. 1
114.8
97.3
80.5
131.6
387.5
102.8
125.7
97.7
77.5

130.4
104.8
124.0
100.3
82.3
116.1
313.5
111.2
137.9
77.1
54.6

141.7
113.0
125.8
106.6
77.4
124.8
360.3
116.9
140.4
82.0
62.1

150.6
118.9
128.9
110.5
83.2
134.1
374.9
121.1
142.3
94.3
70.4

29. 51
13.48
24. 40
29.48
16. 74
26. 40
22.98
28.58
34.88
23. 90
20.08

30.25
13.18
24.33
31.64
17.02
26.95
23. 79
28. 23
34.42
24.11
21.70

30. 84
13. 14
24.47
32.18
17. 16
28.17
23. 89
28. 55
34. 43
25. 83
22. 83

37.4
55.0
39.8
37.8
38.2
37.8
35.3
38.7
36.3
31.1
33.6

38.7
53.5
39.2
39.7
38.6
38.8
37.0
39.2
35.8
31.6
35.9

30.6
78.9
54.1 ! 24.7
39.6 : 57.7
40.5
78.0'
38.8
43.9
40. 5
69.9
37.4 ; 65.1
40.0
74.3
35.9
97.1
33-, ft
7819
37.5
59.8

78.2
24.8
58.3
79.8
44.1
69.6
64.4
72.4
97.0
7910)
60.4

126.9
76.6

128.2
80.8

137.3
87.0

110.9
70.8

121.7
72.9

139.5
84.3

21.15
26.91

21.93
26.26

23. 61
28.24

34.5
28.0

36.0
27.2

38.8
29.3

61.3
96; 7

60; 9
97. 2

61.4
96.6

$27.02
25.49
29. 43
19. 32
34.11

$26.00
24.00
30.05
21.48
34.12

$29.14
26. 25
31.26
23.70
33.64

28.9
29.1
43.1
34.7
40.1

28.3
26.9
43.1
38.9
39.9

31.4 ,
29.6
44.2
42: 6 ;
39; 9 .

92.0
86.6
68.6
55.8
83,8

90:7
87.8
69; 9'
55. O'
84.3

91.2:
88.7
70. ft
55,4
83'. 3'

77.9
24. 5
58.4
79.5
44.2
69; 7
63.8
71.9
96.9
79.0
60.9

i

NONMANUFACTURING
[Indexes are based on 12-month average 1929=100]
Coal mining:
50.9
Anthracite.—......................................................
80.5
Bituminous._______ _____________________
70.4
Metalliferous mining_________________________
Quarrying and nonmetallic mining......................— 43.9
Crude-petroleum producing___________________
76.5
Public utilities:
78.0
Telephone and telegraph............ .......................
Electric light and power and manufactured
96.1
gas-------------------------------------- -------------Electric-railroad and motorbus operation and
72.8
maintenance_______ ____—-------------------Trade:
93.3
Wholesale___ __________________________
R etail... ______________________ ____ ___ 100.1
General merchandising------------------------- 144.7
88.4
Other than general merchandising_______
87.3
Hotels (year-round) 3_________________ _______
87.3
Laundries___________ _______ - ............................
77.1
Dyeing and cleaning________ ________ ________
Brokerage 4__________ _______ ________ _____ -1 .6
+• 2
Insurance4. .. __________ ___________________
Building construction 3_______________________ -17.2

47.2
81.3
65.1
33.4
69.8

45.1
77.8
71.6
41.7
70.2

51.0
86.0
81.7
49.3
69.9

3 79.6

94.7

>91.4

3 94. 9

31.44

»30.12

3 31.01

39.2

3 37.8

»39; 5

85.1

»84.4

98.5

102.4

103.8

105.3

34.38

34.44

34. 23

40.2

40.4

40.4

85.7

85.8

85,1

73.2

73.4

71.9

71.8

71.4

32.26

32.17

31.93

45.7

45.9

45,9

69.7

60.4

68.7

93.5
91.7
109.8
86.9
88.9
88.0
80.5
+ .8
-. 1
-6 .4

94.0
92.1
108.1
87.9
89.2
89.9
85.9
-2 .9
-. 1
-3 .3

77.8
80.6
123.5
71.7
76.3
79.2
58.9
-2 .6
- .8
-22.7

78.3
75.3
97.1
70.8
77.9
79.2
63.3
+1.1
+1.8
-8 .1

79.3
75.9
96.2
71.7
77.7
81.5
71.8
-3 .2
+ .3
-3 .0

30.00
21. 55
18. 59
24.57
15. 25
17.03
19.09
38.36
38.91
28. 53

30.27
21.65
18. 37
24.55
15.25
16.90
19.53
38.60
39.15
30.52

30.45
21.96
18. 55
24.89
15.11
16.96
20.89
38. 52
38. 45
31.22

42.5
43.2
40.4
44.4
47.4
42.0
40.2
(«)
(»)
30.9

42.7
42.7
39.2
43.9
47.2
41.6
40; 8(•)
(5)
33.1

42.9
43.0
39.4
44.2
47.1
42.1
42: 5

: 69; 0
■ 54.8
50.1
. 56.9
' 32.2
1 40; 5
• 49.1
CO
' G)
(*)
1 (‘)
34. 3 ; 91.9

70: 6
55.9
51.2
57.5
32. 2’
40:7
49 1
(f)

70: 656.5
51.5
58.1
31.7
40.3501.5.
(<0

CO'

(0

50.5
82.1
75.4
49.9
77.2

51.0
82.9
82.9
53.3
77.5

3 78.9
97.3

* Average weekly earnings are computed from figures furnished by all reporting estab­
lishments. Average hours and average hourly earnings are computed from data supplied
by a small 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.


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

91.6

ì

83.2

90:8

3 Revised.
* Cash payments only; the additional value of board, room, and tips- cannot be com­
puted.
4 Indexes of employment and pay rolls not available; perceotaige changes from pre­
ceding month substituted.
* Not available.

Trend of Employment and P ay Roth

'Chemicals.............................. .....................
'Cottonseed—oil, cake, and meal................
Druggists’ preparations........... ................ .
Explosives................................................ —
Fertilizers..................................................
Paints and varnishes___________ ______
Rayon and allied products...... ............. .
Soap..............................................................
Petroleum refining______________________
'Rubber products____________________________
Rubber boots and shoes......... ..........................
Rubber goods, other than boots, shoes, tires,
and inner tubes.............................................
Rubber tires and inner tubes_____________

778

Monthly Labor Review—March 1938
INDEXES OF EMPLOYMENT AND PAY ROLLS

Indexes of employment and pay rolls are given in tables 2 and 3 for
all manufacturing industries combined, for the durable- and nondur­
able-goods groups of manufacturing industries, and for 13 nonmanu­
facturing industries, including 2 subgroups under retail trade, by
months, from January 1936 to December 1937, inclusive. The accom­
panying chart indicates the trend of factory employment and pay
rolls from January 1919 to December 1937.
The indexes of factory employment and pay rolls are computed
from returns supplied by representative establishments in 89 manufac­
turing industries and cover wage earners only. The base used in
computing these indexes is the 3-year average, 1923-25, as 100. In
December 1937 reports were received from 25,041 manufacturing
establishments employing 4,327,180 workers, whose weekly earnings
were $99,195,710. The employment reports received from these
establishments cover more than 55 percent of the total wage earners
in all manufacturing industries of the country and more than 65
percent of the wage earners in the 89 industries included in the
monthly survey of the Bureau of Labor Statistics.
T able 2.— Indexes of Employment and Pay Rolls in All Manufacturing Industries

Combined and in the Durable- and Nondurable-Goods Groups

1

[Adjusted to 1933 Census of Manufactures—3-year average 1923-25=100]
Manufacturing

Month

Employ­
ment

Nondurable goods 3

Durable goods 2

Total
Pay rolls

Employ­
ment

Pay rolls

Employ­
ment

Pay rolls

1936

1937

1936

1937

1936

1937

1936

1937

1936

1937

1936

1937

January______ ____
February_________
M arch____ _______
April___________
M ay____________ June...........................

86.8
86.9
87.9
89.1
89.8
90.1

96.5
99.0
101.1
102.1
102.3
101.1

73.8
73.7
77.6
79.3
80.8
81.1

90.7
95.8
101.1
104.9
105.2
102.9

78.7
78.6
80.2
82.3
84.0
84.7

90.4
93.2
96.4
98.6
99.9
98.8

66.9
66.6
71.8
76.0
78.5
79.0

86.6
92.5
100.0
106. 4
107.5
104.6

95.4
95.8
96.1
96.3
96.0
95.9

103.0
105.2
106.1
105.9
104.8
103.5

82.5
82.7
84.9
83.5
83.8
83.9

96.0
99.9
102.6
102.9
102. 3
100.8

July............................
August___________
September________
October___________
November------------December_________

91.2
93.5
95.5
96.7
96.9
98.1

101.4
102.3
102.1
100.5
94.7
88.6

80.2
83.5
83.6
89.0
90.7
95.2

100.4
103.8
100.1
100.1
89.5
80.9

84.6
84.7
85.7
89.2
91.0
92.7

98.9
98.1
97.3
97.6
92.4
84.3

75.9
77.0
77.2
85.3
88.9
93.4

100.7
104.0
99.4
101.7
89.9
77.0

98.2
102.8
105.9
104.7
103.3
104.0

104.1
106.9
107.3
103.6
97.3
93.3

85.6
91.8
91.6
93.7
92.9
97.5

100.0
103.5
100.9
98.2
89.0
85.8

91.9

99.3

82.4

98.0

84.7

95.5

78.0

97.5

99.5

103.4

87.9

98.5

Average_____

>Comparable indexes for earlier years will be found in the April 1937 issue of the M onthly Labor Review.
2 Includes the following groups of manufacturing industries: Iron and steel; machinery; transportation
equipment; railroad repair shops; nonferrous metals; lumber and allied products; and stone, clay, and glass
products.
2 Includes the following groups of manufacturing industries: 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.


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

Employment
ALL
/rn/er Numbers


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

&■

Pay P olls

M A N U F A C TU R IN G IN D U ST
192325100

IndexNumbers

3a-

I

.o '

as
aI
>3
o

•v l

vO

780

Monthly Labor Review—March 1938

The indexes for 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, including executives. For crudepetroleum 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.
T able 3.— Indexes of Employment and Pay Rolls in Selected Nonmanufacturing

Industries, January 1936 to December 1937 1
[12-month average 1929=100]
Anthracite mining
Month

Employ­
ment

Pay rolls

Bituminous-coal
mining
Employ­
ment

Pay rolls

and nonMetalliferous mining Quarrying
inetallic mining
Employ­
ment

Pay rolls

Employ­
ment

Pay rolls

1936 1937 1936 1937 1936 1937 1936 1937 1936 1937 1936 1937 1936 1937 1936 1937
January............
February_____
M arch...... ........
April.................
M ay....... ..........
June.................

59.1
61.2
52.5
49.8
54.9
51.2

54.1
52.7
48.9
54.0
51.0
51.1

54.4
76.7
42.6
28.6
56.3
42.0

42.7
41.0
37.8
63.9
44.4
50.9

79.8
80.2
80.4
77.5
76.2
75.7

84.6
84.8
85.9
72.6
77.8
77.9

70.6
78.4
70.2
62.6
62.2
61.5

79.9
82.4
88.4
54.4
67.8
71.2

54.2
55.5
55.9
57.5
60.8
61.9

66.8
69.6
73.1
76.2
78.5
79.5

41.7
42.8
45.1
45.5
47.7
48.2

58.4
63.4
70.6
76.9
79.8
77.7

39.4
36.9
42.2
48.4
52.0
53.5

45.7
46.7
49.1
53.1
54.9
55.4

25.5
23.9
30.9
36.1
42.1
44.0

34.6
37.8
41.3
48.1
51.4
52.6

July.......... ........
August..............
September____
October______
November____
December____

48.4
41.1
47.6
49.9
51.5
54.8

45.0
41.2
48.2
51.0
50.5
50.9

37.2
31.4
34.9
48.5
40.3
55.4

35.2
27.2
31.5
51.0
45.1
47.2

75.5
76.9
78.2
81.1
82.3
83.9

75.8
78.8
80.5
82.9
82.1
80.5

62.6
65.4
71.0
79.2
80.7
85.0

66.4
73.8
77.7
86.0
77.8
81.3

61.3
61.6
63.1
64.2
62.9
64.4

82.0
83.4
84.1
82.9
75.4
70.4

46.1
48.2
50.0
53.7
54.6
57.7

77.8
83.0
82.2
81.7
71.6
65.1

54.4
55.3
54.9
54.6
52.6
49.4

55.5
54.9
54.7
53.3
49.9
43.9

43.9
46.2
44.8
46.2
43.5
39.4

50.8
53.2
50.1
49.3
41.7
33.4

Average.. 51.8 49.9 45.7 43.2 79.0 80.4 70.8 75.6 60.3 76.8 48.4 74.0 49.5 51.4 38.9 45.4
Crude-petroleum
producing
Month

Employ­ Pay rolls
ment

and
light and Electric-railroad
Telephone and tele­ Electric
motorbus
opera­
power, and manu­
graph
tion
and
mainte­
factured gas
nance •
Employ­ Pay rolls
ment

Employ­
ment

Pay rolls

Employ­
ment

Pay rolls

1936 1937 1936 1937 1936 1937 1936 1937 1936 1937 1936 1937 1936 1937 1936 1937
January______
F ebruary.........
M arch..............
April............ .
M ay..................
June_________

71.1
70.8
70.9
71.3
72.7
73.7

72.7
73.5
74.2
75.8
76.7
78.5

55.7
55.7
56.0
57.1
58.0
58.9

61.2
64.1
63.9
67.7
68.2
70.4

70.1
69.9
70.2
70.8
71.6
72.1

Ju ly ..................
August_______
September____
October______
November........
December____

75.4
75.0
74.5
73.6
73.2
72.4

78.5
79.3
78.2
77.5
77.2
76.0

60.4
59.7
60.4
59.6
60.1
61.3

70.5
70.8
71.2
69.9
70.2
69.8

73.1 79.7
73.5 79.8
73.7 •79.8
73.8 •79.6
73.7 •78.9
73.6 78.0

74.4
74.8
75.4
76.6
77.7
78.5

75.0
76.2
77.2
76.0
78.5
77.4

83.6
82.2
87.2
86.3
89.5
88.6

86.1
86.1
86.8
88.0
89.0
90.4

92.1
92.2
92.4
93.1
94.6
96.3

84.8
84.7
85.9
86.2
87.0
88.1

92.3
93.6
94.8
95.5
97.9
100.4

70.7
71.7
71.2
71.3
71.5
71.7

72.5
72.5
72.6
72.9
73.3
73.3

65.0
68.3
67.8
65.9
66.1
66.8

79.9 92.1
81.2 92.1
78.8 92.3
83.1 •94.9
81.6 •91.4
82.4 94.7

91.7
93.1
93.5
94.0
93.5
93.2

97.5
98.3
98.6
98.5
97.3
96.1

89.8
89.8
91.4
92.7
91.8
93.8

102.2
102.6
104.0
105.3
103.8
102.4

72.4
72.4
72.8
73.1
73.0
72.5

73.4
73.4
73.7
73.4
73.2
72.8

66.5 70.8
66.5 73.1
66.4 71.6
67.7 71.4
69.7 •71.8
69.3 71.9

68.0
68.7
69.2
69.4
70.1
71.1

Average— 72.9 76.5 58.6 68.2 72.2 77.8 78.9 89.6 90.5 95.6 88.8 99.6 72.0 73.1 67.2 70.6
• Comparable indexes for earlier years for all of these industries, except year-round hotels, will be found
in the February 1935 and subsequent issues of the Monthly Labor Review. Comparable indexes for yearround hotels will be found in the September 1935 issue of the M onthly Labor Review.
* Not including electric-railroad car building and repairing: see transportation equipm ent and railroad
repair-shop groups, manufacturing industries, table 1.
•Revised.


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

Trend of Employment and Pay Rolls

781

T able 3.— Indexes of Employment and Pay Rolls in Selected Nonmanujacturing

Industries, January 1936 to December 1937—Continued
Wholesale trade
Month

Employ­
ment

Pay rolls

Total retail trade

Retail trade—gen­
eral merchandising

Retail trade—other
than general mer­
chandising

Employ­ Pay rolls
ment

Employ­ Pay rolls
ment

Employ­ Pay rolls
ment

1936 1937 1936 1937 1936 1937 1936 1937 1936 1937 1936 1937 1936 1937 1936 1937
January______
February ___
M arch_______
April___ _____
M ay..............
June..............

85.6
85.0
85.6
85.7
84.6
84.6

90.7
92.0
92.1
91.9
90.8
90.3

66.6
66.6
69.0
67.9
68.2
68.4

72.6
74.1
75.0
75.4
76.1
76.3

80.4
79.7
81.9
85.2
85.0
85.5

85.4
85.2
88.5
88.8
89.9
90.5

62.1
61.6
63.5
65.3
65.8
66.4

68.0
67.9
70.5
71.9
73.5
74.4

88.2
85.1
90.9
97.4
95.5
96.4

95.1
93.9
100.3
99.6
102.1
102.9

76.4
73.9
77.3
81.0
80.8
81.3

83.8
82.9
87.6
89.1
91.5
92.5

78.4
78.3
79.5
82.0
82.3
82.6

82.9
82.9
85.4
86.0
86.7
87.2

59.1
59.1
60.7
62.1
62.7
63.3

64.7
64.8
67.0
68.3
69.8
70.6

July_________
August______
September____
October______
November___
December____

85.4
86.3
88.0
89.0
89.7
91.0

90.6
91.8
93.0
94.0
93.5
93.3

69.0
69.7
70.5
71.5
73.1
72.8

76.9
79.0
78.3
79.3
78.3
77.8

83.2
82.4
86.6
88.7
90.1
99.6

87.6
86.2
90.7
92.1
91.7
100.1

65.1
64.4
66.6
68.3
70.1
75.9

72.8
72.3
74.4
75.9
75.3
80.6

90.7
89.4
98.5
103.9
109.3
143.4

95.9
93.8
103.7
108.1
109.8
144.7

77.3
76.4
82.8
87.2
91.4
116.2

87.3
85.7
92.4
96.2
97.1
123.5

81.2
80.5
83.5
84.7
85.1
88.1

85.4
84.2
87.3
87.9
86.9
88.4

62.6
61.9
63.3
64.4
65.7
67.6

69.8
69.5
70.7
71.7
70.8
71.7

Average.. 86.7 92.0 69.4 76.6 85.7 89.7 66.3 73.1 99.1 104.2 83.5 92.5 82.2 85.9 62.7 69.1
Year-round hotels
Month

Employ­ Pay rolls
ment

Laundries
Employ­
ment

Dyeing and cleaning

Pay rolls

Employ­
ment

Pay rolls

1936 1937 1936 1937 1936 1937 1936 1937 1936 1937 1936 1937
January______
February_____
March________
April_________
M ay_________
June_________

81.9
82.8
82.8
83.2
84.1
83.9

85.5
86.4
86.9
88.4
87.7
86.9

64.9
66.5
66.0
66.3
67.0
66.6

70.4
72.5
72.7
74.5
73.6
74.0

81.5
81.2
82.1
83.2
85.5
87.2

88.5
88.6
88.7
88.5
90.3
93.5

68.3
67.8
69.9
70.9
75.6
75.8

76.4
76.3
77.5
78.5
81.4
85.5

71.5
70.3
74.7
81.8
87.3
87.5

July-------------August_______
September____
October______
November____
December____ ....... ......... ......... —
Average.. ....... ......... —
. . . . .

83.3
83.2
84.2
85.4
84.6
84.0

86.1
86.8
88.1
89.2
88.9
87.3

66.0
66.1
67.5
69.6
69.6
69.8

73.3
74.4
76.1
77.7
77.9
76.3

90.5
89.6
89.6
87.6
87.0
87.6

95.2
94.2
93.7
89.9
88.0
87.3

79.0
76.7
76.6
75.3
74.5
76.1

86.9
86.0
84.4
81.5
79.2
79.2

85.5 386.3
83.5 385.8
86.7 387.7
86.5 385.9
81.3 380.5
77.7 77.1

76.8
76.2
81.1
84.9
88.6
92.1

51.6
49.0
56.4
64.1
72.2
69.2

55.6
54.6
61.7
68.8
73.9
79.2

64.8 368.3
63.2 369.8
66.1 373.6
66.7 371.8
60.2 363.3
57.3 58.9

83.6 87.4 67.2 74.5 86.1 90.5 73.9 81.1 81.2 83.6 61.7 66.6

* Revised.

General indexes of factory employment and pay rolls by yearly
averages, 1923 to 1937, inclusive, and by months, January to Decem­
ber 1937, inclusive, are given in the Bureau’s monthly report on
Employment and Pay Rolls for December 1937, copies of which will
be furnished upon request. That pamphlet also contains indexes for
the same periods, where available, for each of the 89 manufacturing
industries surveyed, for the durable- and nondurable-goods groups,
and for the 14 smaller groups and 2 subgroups into which they are
classified.
The indexes have been adjusted to conform with the annual averages
and totals shown in published reports of the Census of Manufactures
through 1933, and are subject to further revision when adjustments
are made to bring them into conformity with later census data.

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

Building Operations

SUMMARY OF BUILDING CONSTRUCTION IN
PRINCIPAL CITIES, JANUARY 1938 1
BUILDING activity as measured by the value of permits issued
showed a pronounced increase (14.9 percent) in January 1938 over the
preceding month. The value of new residential buildings for which
permits were issued in January showed a gain of 53.4 percent compared
with December 1937. While this increase was most marked in cities
having a population of half a million or over, increases were also shown
in cities having a population of between 100,000 and 500,000 and in
cities between 50,000 and 100,000. The most pronounced increase
occurred in New York City where the date of effectiveness of the new
building code was changed from January 1 to January 27. The value
of new nonresidential buildings was 13.3 percent lower and additions,
alterations, and repairs 13.2 percent lower than in December.
Compared with January 1937 permit valuations showed an increase
of more than 79 percent. All classes of construction registered gains.
The greatest increase, 129.1 percent, was in new residential construc­
tion. New nonresidential construction in January was 64.7 percent
above the corresponding month of 1937 and additions, alterations, and
repairs increased 4.4 percent.
Comparison of January 1938 With December 1937 and
January 1937
A summary of building construction in 1,603 identical cities in Janu­
ary 1938, December 1937, and January 1937 is given in table 1.
T a b l e 1 .— Summary

of Building Construction for Which Permits Were Issued in 1,603
Identical Cities, January 1938
Number of buildings

Class of construction

Estimated cost

Percentage
Percentage
change from—
change from—
January
January
1938
1938
Decem­ Janu­
Decem­ Janu­
ber 1937 ary 1937
ber 1937 ary 1937

All construction_________________________

33,151

-3 .2

- 0 .2

$174,924, 551

+14.9

+79.1

New residential____________ ________ _____
New nonresidential______________________
Additions, alterations, and repairs............... .

8,176
5,236
19, 739

+0.7
- 8 .2
-3 .4

+2.4
- 7 .2
+0.8

98,637,479
52,639,054
23, 648,018

+53.4
-13.3
-13.2

+129.1
+64.7
44.4

1 More detailed information by geographic divisions and individual cities is given in a separate pamphlet
entitled “ Building Construction, January 1938” , copies of which will be furnished upon request.

782

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

783

Building Operations

A summary of the estimated cost of housekeeping dwellings and the
number of families provided for in new dwellings in 1,603 identical
cities having a population of 2,500 and over, is shown in table 2 for
the months of January 1938, December 1937, and January 1937.
T able 2.— Estimated Cost of Housekeeping Dwellings and Number of Families Provided

for in 1,603 Identical Cities, January 1938
Estimated cost of housekeep­
ing dwellings

Number of families pro­
vided for in new dwell­
ings
Percentage
change from—

Percentage
change from—

Type of dwelling
January 1938

All types________ ____ ______ ___________

$98, 221, 639

1-family—____ ____ ______ _______ _______
2-family 1_______ _______ ________ ______
Multifamily J._ .______ ______ _________

January
1938

■De­
Janu­
cember ary
1937
1937
+55.5 +129. 5

25,177, 594
-6 .1 -22.1
2,822, 756 -41.3 +35.9
70, 221, 289 +122. 7 +736.2

29,877

De­
Janu­
cember ary
1937
1937
+85.0

+170. 5

-2 .3
6,958
1,214 -16.9
21,705 +187.0

-5 .0
+50.8
+643.6

1 Includes 1- and 2-family dwellings with stores.
2 Includes multifamily dwellings with stores.

Analysis by Size of City , January 1938
Table 3 shows the estimated cost of building construction for which
permits were issued in January 1938, compared with December 1937
and January 1937, by size of city and by class of construction.
T able 3.— Estimated Cost of Building Construction for Which Permits Were Issued, by

Size of City, January 1938
Total construction
Size of city

Estimated
cost, Janu­
ary 1938

Percentage
change from—
Decem­ Janu­
ary
ber
1937
1937

New residential buildings

Estimated
cost, Janu­
ary 1938

Percentage
change from—
Decem­ Janu­
ber
ary
1937
1937

Total, all reporting cities_________ ____ _ $174,924,551

+14.9

+79.1

$98,637, 479

+53.4

+129.1

500.000 and over............. ..............................
100 ,000 and under 500,000.............................
50.000 and under 100,000_____ _________
25.000 and under 50,000................................
10.000 and under 25,000......................... ......
5.000 and under 10,000.... ...........................
2.500 and under 5,000__________________

+31.6 +214. 9
-18.2 -19.7
-18.9 -20.2
+3.9 -16.3
-15.1 -13.8
+62.9 +74.7
-53.1 -18.3

80,218,115
5,948,327
2,998,521
2,159,139
3, 666,619
2, 373,048
1, 273, 710

+78.8
+1.4
+6.8
-14.1
-17.0
-2 .7
-7 .3

+385. 6
-19.3
-18.3
-46.1
-43.0
-24.8
-33.1

121,475,903
15,757,547
7, 361, 751
8,405,756
9,700, 576
9, 224,610
2,998, 408

New nonresidential buildings
Total, all reporting cities.___ _____ ____
500.000 and over_________________ ____
100,900 and under 500,000_______ ______
50.000 and under 100,000...'____________
25.000 and under 50,000_______ ________
10.000 and under 25,000...............................
5.000 and under 10,000_______ _____ ___
2.500 and under 5,000___ ______________


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

$52,639,054

-13.3

Additions, alterations, and
repairs

+64.7

$23, 648,018

-13.2

+4.4

30,672,928 -16.6 +134.8
5,163,103 -32.1 -31.1
1, 618,927 -57.0 -51.1
4,193, 200 +24.3 +39.4
4,029,109 -20.5 +54.4
5, 716,073 +189. 7 +360.9
1, 245, 714 -41.4
+0.9

10, 584,860
4, 646,117
2,744,303
2,053,417
2,004,848
1,135,489
478,984

-0 .8
-19.8
+9.9
-6 .8
+3.7
-9 .2
-83.4

+17.7
-2 .5
+22.4
-32.1
-9 .3
+28.1
-10.2

784

Monthly Labor Review—March 1938

The estimated cost of housekeeping dwellings for which permits were
issued in the 1,603 identical cities reporting for December 1937 and
January 1938, together with the number of family-dwelling units
provided in new dwellings, by size of city, is given in table 4.
T able 4.—Estimated Cost of Housekeeping Dwellings and Number of Families Provided

for in 1,603 Identical Cities, by Size of City, December 1937 and January 1938
Estimated cost of house­
keeping dwellings

Number of families provided for in—

All types

Size of city
January
1938

1-family 2-family Multifamily
dwellings dwellings i dwellings 2

Per­
December centage
1937
De­ Jan­ De­ Jan­ De­ Jan­ De­
change Jan­ cem­
cem­ uary cem­
uary ber uary cem­
ber uary
ber 1938 ber
1938 1937 1938 1937
1938 1937
1937

Total, all cities________ $98,221,639 $63,166,686

+55.5 29,877 16,148 6,958 7,125 1,214 1,461 21,705 7,562

500,000 and over_______ 80,093,115 44, 615,002
100,000 and under 500,000. 5,948,327 5,455, 573
50,000 and under 100,000.. 2,757, 521 2,734,164
25,000 and under 50,000... 2,159,139 2,485,990
10,000 and under 25,000... 3,633,079 4,189,022
5,000 and under 10,000___ 2,369,748 2,312,680
2,500 and under 5,000....... 1,260,710 1,374,255

+79.5 24,183 11, 050 2,451 2,916
+9.0 1,827 1,536 1,400 1,175
+0.9
831
753 580 520
-13.1
720
691 594 605
-13.3 1,154 1, 036 950 942
+2.5
752 695 618 611
-8 .3
410 387 365 356

694 1,106 21,038 7,028
208 146
219
215
92
159
66
167
49
80 37
46
64
51
140
43
45
31
53
89
24
14
31
7

1 Includes 1- and 2-family dwellings with stores.
2 Includes multifamily dwellings with stores.

The information on building permits issued January 1938, Decem­
ber 1937, and January 1937 is based on reports received by the
Bureau of Labor Statistics from 1,603 identical cities having a popula­
tion of 2,500 and over.
The information is collected by the Bureau of Labor Statistics
direct from local building officials, except in the States of Illinois,
Massachusetts, New Jersey, New York, North Carolina, and Pennsyl­
vania, where the State departments of labor collect and forward the
information to the Bureau. The cost figures shown in this report
are estimates made by prospective builders on applying for permits
to build. No land costs are included. Only building projects within
the corporate limits of the cities enumerated are included in the
Bureau’s tabulation. In addition to permits issued for private
building construction, the statistics include the value of contracts
for Federal and State buildings in the cities covered. Information
concerning public building is collected by the Bureau from various
Federal and State agencies having the power to award contracts for
building construction. These data are then added to the data
concerning private construction received from local building officials.
In January 1938 the value of Federal and State buildings for which
contracts were awarded in these 1,603 cities amounted to $2,030,000;
in December 1937, to $5,912,000; and in January 1937, to $3,065,000,

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

Building Operations

785

Construction From Public Funds
The value of contracts awarded and force-account work started
during January 1938, December 1937, and January 1937 on construc­
tion projects financed from various Federal funds is shown in table 5.
T able 5.— Value of Contracts Awarded and Force-Account Work Started on Projects

Financed from Federal Funds, January 1938, December 1937, and January 1937 1
Value of contracts awarded and force-account
work started
Federal Agency
January 1938 December 19372 January 1937
Total...................................... ........................

$64, 788,938

Public Works Administration:
Federal-,....................................................
Nonfederal:
N. I. R. A...........................................
E. R. A. A . . ................................... .
Federal projects under The Works Program
Regular Federal appropriations............ ......

340, 582

668,895

2, 221, 587

1,297,977
28,853,432
1,906,480
32,390,467

1,837,422
60, 599,926
7,488,275
73,317,638

2 4,152,609
246,014, 602
2 12,761,357
26, 768,109

$143,912,156

2$91,918,264

1 Preliminary, subject to revision.
2 Revised.

The value of public-building and highway construction awards
financed wholly from appropriations from State funds, as reported by
the various State governments for January 1938, December 1937,
and January 1937 is shown in table 6.
'F a b l e 6 . — Value

of Public-Building and Highway-Construction Awards Financed
Wholly From State Funds
Value of contracts

Type of project

Public buildings.. ______________________
Highway construction________________ __________


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

January 1938

December 1937

$1,666,145
2,870,821

$4, 335, 282
2,572,449

January 1937
$1,177, 020
5,327, 283

Retail Prices

SUMMARY OF FOOD AND COAL PRICES
FOOD costs were 2.8 percent lower for January than for December.
The decrease resulted from lower prices for 59 of the 84 foods for
which the Bureau collects retail prices. Only one index moved
upward, that for fresh fruits and vegetables.
This report contains a brief review of changes in food costs in 1937.
There was an average increase of 3.6 percent for the year. The
increases occurred during the first 5 months. A gradual decline
followed which was accentuated after September.
There was a seasonal advance in coal prices between September 15
and December 15, 1937. The increase for bituminous coal amounted
to 1.8 percent. For Pennsylvania anthracite, price increases ranged
from 1.4 percent for buckwheat to 3.0 percent for stove.

FOOD PRICES IN JANUARY 1938
RETAIL food costs declined 2.8 percent between December 1937
and January 1938. The decrease extended to all commodity groups
except fruits and vegetables. The declines were widespread and
lower costs were reported for all of the 51 cities included in the indexes.
The food-cost index for January 18 was 80.3 percent of the 1923-25
average. This was 5.1 percent lower than 1 year ago, when the index
was 84.6. This decrease over a year ago was due in large part to a
decline of 20.8 percent in the cost of fruits and vegetables, of 11.8
percent for fats and oils, and of 8.1 percent for eggs. Food costs
were 28.3 percent higher than for January 1933 when the index was
62.6. Compared with the corresponding period in 1929, when the
index was 102.7, food costs have decreased by 21.8 percent.
786


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

Retail Prices

787

DETAILS BY COMMODITY GROUPS

The cost of cereals and bakery products declined 0.5 percent
between December and January. Flour and white bread showed a
price decrease of 0.4 percent each. Price declines were greatest for
corn meal, macaroni, and rice, all of which have shown a downward
movement over a period of several months. The price of flour has
declined 13.5 percent below the level of a year ago. Bread has
advanced 5.6 percent during the same interval.
Meat costs were 4.3 percent below the December level. The
decrease was general and prices were lower for 17 of the 21 items in
the group. Eleven of the decreases averaged 5.0 percent or more.
For beef and veal, the decline was 6.0 percent; for pork, 4.3 percent;
and for lamb, 5.3 percent. The price of roasting chickens rose 1.4
percent and canned salmon was slightly higher. Prices for both of
these products are well above the average of a year ago.
The decline of 4.8 percent reported for dairy products is somewhat
more than seasonal, due in large part to a decrease of 1 cent a quart
in the price of fresh milk in New York City, Rochester, and Omaha.
The average decrease for fresh milk was 1.8 percent. The price of
butter declined 11.1 percent and was lower in all cities. Butter
prices are now about at the level of January 1936 and 1937. The
price of cheese decreased 1.6 percent.
Egg prices were lower in all cities, showing a seasonal decrease of
8.6 percent. The regional decline ranged from 3.5 percent in New
England to 16.9 percent on the Pacific Coast.
An advance of 1.2 percent in the cost of fresh fruits and vegetables
resulted in an increase of 0.9 percent for the group as a whole. The
price of potatoes decreased 0.8 percent. Price declines were more
marked for oranges, lemons, carrots, and lettuce, with the greatest
decrease, 12.6 percent, reported for oranges. Seasonal advances for
other fresh items, which ranged from 1.6 percent for bananas to 18.5
percent for cabbage, more than offset these declines. The price of
canned corn decreased 1.0 percent. Price changes for other canned
items were nominal. The cost of the dried products declined 1.7
percent. All the dried items except peaches were lower in price.
Navy beans showed the most decrease, 3.1 percent.
Beverages and chocolate decreased 1.6 percent. The price of
coffee was 3.0 percent lower and fractional price declines were reported
for other items in the group.
The cost of fats and oils averaged 2.5 percent lower and decreased
in each of the 51 cities. The price of lard declined 6.1 percent and


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

788

Monthly Lahor Review—March 1938

Retail Cost

of

Food

1923- 25=100
Indu Numbers

Un ited S tates B ureau


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

indu Numb**

of

L abo r S tatistics

Retail Prices

789

was below the average reported for any pricing period since August
1934. Prices of vegetable shortening and peanut butter decreased
slightly more than 1 percent. There were fractional price changes
for other items in the group. The price of lard was 21.5 percent
lower than a year ago. It has decreased far more than the price
of any pork item.
The index for sugar and sweets declined 0.9 percent. Lower
prices were reported for each item in the group. These price de­
creases amounted to 1.0 percent for sugar, 1.3 percent for corn sirup,
1.9 percent for molasses, and 0.7 percent for strawberry preserves.
Indexes of retail food costs for January 1938 and December 1937,
together with indexes for January 1937, 1933, and 1929 are shown
in table 1. The chart shows trends in the cost of all foods and of
each major commodity group for the period January 1929 to December
1937, inclusive.
T able

1.— Indexes of Retail Food Costs in 51 Large Cities Combined,1 by Commodity
Groups
January 1938 and December 1937, and January 1937, 1933, 1929
[1923-25=100]

Commodity group

1938,
Jan. 18

1937
Dec. 14

J a n .12

1933,
J a n .15

1929.
Jan. 15

All foods................................. ............ ........

80.3

82.6

84.6

62.6

102.7

Cereals and bakery products >.............. .
Meats__________________ __________
Dairy products................. ...........................
Eggs-------------------------------------- ---------Fruits and vegetables........ .......................
Fresh.....................................................
Canned____________________ _____
Dried-----------------------------------------Beverages and chocolate______ ______ _
Fats and oils_____ _______ _______ ____
Sugar and sweets...................... ................

93.2
93.8
83.9
70. 1
58.9
56.8
79.8
61.3
68.3
70.2
66.2

93.6
98.0
88.2
76.7
58.4
56.2
79.9
62.4
69.4
72.0
66.8

92.4
95.7
83.4
76.3
74.4
73.5
81.8
71.8
68.6
79.6
64.8

69.5
64.8
63.4
66.9
52.3
51.4
66.4
48.6
71. 1
46.9
58.3

98.4
117.6
105.1
105.0
88.2
86.6
96.0
98. 2
110.7
94. 1
76. 7

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 with the use of population weights.

The prices of 59 of the 84 items included in the index declined be­
tween December 1937 and January 1938, 20 increased, and 5 showed
no change. Compared with a year ago, the January prices were
higher for 57 items and lower for 27 items.
Average prices of each of the 84 foods for 51 cities combined are
shown in table 2 for January 1938 and for December and January
1937.


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

Monthly Labor Review—March 1938

790
T

able

2 . —Average

Retail Prices of 84 Foods in 51 Large Cities Combined 1

January 1938 and December and January 1937
[Asterisk (*) indicates the 42 foods included in indexes prior to Jan. 1, 1935]
1938

1937

Article

Cereals and bakery products:
Cereals:
‘ Flour, wheat........................................ ........................ pound..
•Macaroni.......... .............................. — ........................... do___
‘ Wheat cereal—.................................. - _____ 28-oz. package—
•Corn flakes____________________- ______ 8-oz. package. .
Hominy grits...................................—
‘ Rice______ _____ ______ _______

Jan. 18

Dec. 14

Jan. 12

Cents

Cents

Cents

4.3
14.9
24.4
7.6
4.8
9.2

8.0

4.3
15.2
24.5
7.7
5.0
9.1

8.1

5.0
15.3
24.2

8.1

5.4
9.8
8.5
7.5

7.2
7.4
................. .........do___
Bakery products:
8.4
8.9
8.9
‘ Bread, white______ ________ _____
9.8
9.8
9.5
Bread, whole-wheat............ ..............
10.0
10.0
9.7
Bread, rye___ __________________
24.8
25.4
25.5
C a k e ____________________ _____ ......... ............ ___do___
18.1
16.5
16.6
Soda crackers_________ __________ ........................ _.do___
Meats:
Beef:
36.2
39.4
40.2
‘ Sirloin steak.............................. ..........
32.8
36.1
36.0
‘ Round steak...... .................. ...............
29.1
30.4
31.6
‘ Rib roast.. ........................ ...... .......... ....................... „ d o ___
22.4
24.8
23.8
‘ Chuck ro ast........................................
16.4
16.9
15.6
‘ Plate.....................................................
24.4
24.8
25.0
Liver_______ ________ __________ —........................ do___
Veal:
43.8
43.6
43.0
Cutlets....................................... ..........
Pork:
33.6
29.3
31.1
‘ Chops.— ______________________
25.3
27.9
23.7
Loin roast____________ _________ .......................... .do___
38.6
40.0
39.8
•Bacon, sliced____ ______ „ ...........
32.1
34.2
33.8
Bacon, strip .......................................
45.4
49.0
47.1
‘ Ham, sliced_____ _______________
28.2
28.4
30.6
Ham, whole_________ _______ ___
25.2
21.7
23.7
Salt pork......... ................. .................
Lamb:
13.3
12.1
14.7
B reast...................... ........................
24.4
22.8
20.7
Chuck___ ______________________
28.4
29.9
26.9
‘ Leg........................................................ ............................do___
36.0
38.0
34.0
Rib chops___ _____ ____________
Poultry:
35.9
35.4
29.8
‘ Roasting chickens_______ ________
Fish:
14.2
14.0
13.0
Salmon, pink___ _________ _____
24.8
27.0
27.0
‘ Salmon, red_______________ _____
Dairy products:
40.4
45.5
•B utter_______ ___ ________________
41.1
29.0
29.4
29.4
‘ Cheese......................................................
Cream___________________________
15.0
15.0
15.3
12.5
12.7
12.3
Milk, fresh (delivered and store)1........ _____________ quart..
12.7
13.0
12.5
‘ Milk, fresh (delivered)..........................
7.5
7.9
7.5
‘Milk, evaporated.....................................
39.0
39.7
35.8
•Eggs--------------------- ---------------------------Fruits and vegetables:
Fresh:
4.5
6.3
Apples___________ _______ _____
4.4
6.2
6.7
6.3
♦Bananas_____ __________________
32.9
36.8
27.6
Lemons.............. ............ ............ ......
25.0
28.6
29.1
‘ Oranges................ ............................ . ....................... __do___
13.9
12.1
Beans, green. ................. ........ ...........
14.4
3.7
3.8
4.4
‘ Cabbage..............................................
5.9
5.7
Carrots___________________ ____
5.8
9.9
Celery.................................... ...........
8.8
8.8
7.9
7.5
Lettuce._______ _______________
8.1
3.3
4.3
•Onions..................... .......................... .............. .........pound..
4.8
2.0
2.0
3.7
‘ Potatoes.___ ________ __________ ____ _________do___
Spinach............................................. .
8.5
8.1
7.1
3.8
4.3
Sweetpotatoes.....................................
3.7
Canned:
can..
19.5
19.5
18.6
Peaches--------------------------- ------ - .................no.
21.7
22.1
Pears.................................................... ______________do___
21.6
22.5
23.1
23.1
Pineapple................................ ........... _______ _____ .do___
1Prices for individual cities are combined with the use of population weights.
1Average prices of milk delivered by dairies and sold in grocery stores, weighted according to the relative
proportion distributed by each method.


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

Retail Prices

791

—Continued

T able 2.— Average Retail Prices of 84 Foods in 51 Large Cities Combined

January 1938 and December and January 1937
[Asterisk (*) indicates the 42 foods included in indexes prior to Jan. 1, 1935]
1938

1937

Article

Fruits and vegetables—Continued.
C anned—Continued.
Asparagus______ _____ ____
Beans, green_______________
’ Beans with pork___________
’Corn_______ _____________
’ Peas.___ _________________
•Tomatoes.________________
Tomato soup.......... ..................
Dried:
P eaches...______ __________
•Prunes_______ ____________
•Raisins___________________
Black-eyed peas____________
Lima beans. ___ ________
•Navy beans_______________
Beverages and chocolate:
•Coffee________________________
•Tea.____ ____________________
Cocoa________________________
Chocolate________ __________ .
Fats and oils:
•Lard_______________________
Lard compound___ ___________
•Vegetable shortening____ ______
Salad oil______________________
Mayonnaise__________________
•Oleomargarine____ ____________
Peanut butter_________________
Sugar and sweets:
•Sugar. ______________________
Corn sirup . . ________________
Molasses_____________________
Strawberry preserves___________

Jan. 18

Dec. 14

Jan. 12

C en ts

C en ts

C en ts

30.2
11.5
7.6
12.0
15.9
9.0
7.4

30.1
11.5
7.6
12.1
16.0
9.0
7.4

27.2
12.2
7.5
13.0
16.3
9.5
8.1

15.8
9.6
10.1
8.1
9.4
6.6

16.2
9.8
10.2
8.3
9.7
6.9

17.6
10.5
9.8
9.7
11.8
9.5

24.2
17.6
9.1
16.1

25.0
17.7
9.S
16.5

24.9
817. 9
10.1
16.1

13.8
13.4
19.9
25.0
17.5
17.5
18.8

14.7
13.5
20.1
25.2
17.5
17.6
19.0

17.7
16. 0
21.6
25.4
16.9
19.4
18.9

5.5
14.2
14.1
22.2

5.6
14.4
14.4
22.4

5.6
14.3
14.4
21.1

8 Converted to quarter pound for comparison with 1938.

DETAILS BY REGIONS AND CITIES
The average decrease for the 51 cities included in the index was
2.8 percent. Regional declines were greatest in New England and
the Middle Atlantic area, where they amounted to more than 3.0
percent. In the Central and Southern cities, the decrease was slightly
more than 2.0 percent. There was less decrease in the Mountain
area and on the Pacific Coast.
In New Haven, where costs declined most, meats went down 9.9
percent and white bread was 3.0 percent lower. The heavy decline for
New York City and Omaha was due to marked decreases in meats
and dairy products, including a decline of 1 cent a quart in the price
of fresh milk. In Providence, which reported a decrease of 4.3 per­
cent, the price of flour was 4.1 percent lower and white bread decreased
3.3 percent.
Indexes of retail costs of food by cities and regions are given in
table 3 for January 1938 and December 1937 and for January of
earlier years.
46585— 38 ------15


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

Monthly Labor Review—March 1938

792

T able 3.— Indexes of the Average Retail Cost of All Foods, by Regions and Cities

1

January 1938 and December 1937 and January 1937, 1936, 1933, 1932, 1929
[1923-25=100]
1929,
J a n .15

1938,
Jan. 18

1937,
D ec. 14

1937,
Jan. 12

1936,
Jan. 14

1933,
Jan. 15

1932,
Jan. 15

United States----------------------------

80.3

82.6

84.6

81.7

62.6

72.8

102.7

N ew England_________________
B oston ___________________
B ridgeport________________
F all R iver . . . ____ _____
M anchester_____________ -

su T

Portland, M a in e. ----------Providence____ . . . -----

78. r
76.7
83.4
82.0
80.0
82.0
78.7
77.1

78.7
86.6
84.6
82. 1
86. 1
81.4
80.6

82.7
80.3
88.1
84.8
86. 5
87.6
83.2
83.2

79.9
77.8
86.3
80.9
82.8
84.9
79.8
79.0

64.0
63.0
67.3
61.8
62.6
66.9
63.6
63.4

73.8
72.4
76.9
72.1
71.1
78. 8
74.0
72.1

102.1
101. 5
102.3
103. 3
101.4
103.9
102.5
101.2

Middle A tlantic_______________
B uffalo____________________
N ew ark . . . _ . . .......... . .
N ew Y ork ________________
P h ilad elp h ia______________
Pittsburgh _______________
R ochester___________ - . .
S cra n to n ,. ________ ______

81.1
80.4
82.9
81.9
81.8
79.3
79.8
75.4

84.0
81.8
85.6
86.0
83.9
81. 1
82.8
77.0

84.9
82.8
86. 1
84.7
87.7
83.1
83.9
81.8

83.1
81.3
83.9
84.3
84. 7
80.2
81.4
78.9

64.3
61.5
67.6
67.2
63.4
59. 2
60.0
61. 7

73.5
69.3
75. 7
75.9
72.9
69. 7
70.4
71.7

102.8
103.2
103.0
103.0
101.6
104. 7
100.6
103.5

East North Central_____ _
Chicago__________ ________
C in cin n ati. ___ _ . _____
C levelan d ________ _______
C olum bus, O hio__________
D etroit___ . ____ . . . .
Ind ianap olis_____ ________

80.9
81.8
81.7
80.2
79.3
80.6
79.7

82.9
84.2
83.3
81.9
81.0
82.5
81.6

85.2
86.3
87.5
82.0
84.8
84.8
85.6

81.4
82.2
84.8
79.8
82.4
81.1
81.1

60.3
61.9
62.4
58.8
59.7
57.3

72.3
75.8
75.2
69.6
70.8
67.6

103.9
105. 4
105.8
101.1
102.9
103.3

Milwaukee________ .. .
Peoria.. . . . ___________
Springfield, 111_________

84.2
80.5
77.8

85.7
82.5
80.9

88.8
86.9
85.3

82.4
82.4
79.0

59.4
63.3
60.8
59.6

70. 1
76. 5
70.6
69.0

104.4
103.8
103.0
102.4

West North Central____________

82.3
80.8
85. 5
76.5
84.6
82.0

84.2
82.0
87. 1
79.9
86.3
83.9

89.5
88.4
93.2
85.5
90.8
88.6

84.0
81.5
87.0
80. 3
86.2
83.4

61.3
63.3
61.9
58.0
61.1
61. 7

72.6
72.6
75.0
69.9
72.5
73.3

103.5
103.7
103.9
101.4
104.6
102.1

79.2
73. 7
84. 7
80.6
78.4
79.2
74.4
79.8
80.9

81.0
76.6
86. 1
82.2
79.4
79.8
76.0
80.8
83.6

84.1
81.4
88.2
83.9
80.1
84.4
81.6
82.7
86.3

82.0
78.3
85. 1
82.2
79. 7
82.9
78.7
81.9
85.3

61.5
57.3
64.0
61.8
56.9
62.7
59.3
61. 7
65.2

71.6
67.1
73.5
73.4
68.5
76.2
69.1
71.2
73.8

101.0
103.6
1000
100.4
96.0
105.5
98.6
101.6
103.0

East South Central_____________

75.5
71.3
84.8
76.9
75.1

77.2
72.8
86.9
78.5
76.6

80.4
75.7
90.1
83.4
78.2

76.7
71.9
87.4
77.7
76.5

57.5
55.0
61.4
59.6
59.4

67.6
64.9
71.9
69.9
68.6

102.2
100.2
106. 4
102. 7
100.9

West South C entral. ___ _______
D allas_____________________

Houston__________ . . .
Little Rock..........................
New Orleans............ ...........

78.9
75.8
78.8
76.5
83.7

80.7
78.7
80.3
78.5
84.2

82.9
81.3
82.2
82.1
86.0

80.2
79.8
79.2
78.3
83.3

60.3
60.2
57.3
55.5
65.6

71.5
70.6
70.4
66.1
75. 7

102.1
103.3
99. 7
104.3
103.1

M ountain---------------------------------

88.6

83.7

62.9

71.3

77.5
86.0
81.1

61.6
65.6
58.6

74.8
72.0
69.1

78.9

64.2

»73.0

C ity and regional area

Kansas C ity____________
Minneapolis____________
Omaha_____ _________
St. Louis_______________
St. P a u l..------ ------------------South A tlantic_________________

Atlanta_____________ . . .
Baltimore----- - -----------Charleston, S. C _________
Jacksonville_____________
Norfolk________________
Richmond________ _____
Savannah ...........................
Washington, D . C ........... .
Birmingham....... ...............
Louisville______________
Memphis_______________
M ob ile____ ____ __________

83.4

84.8

B utte__________________
Denver______ _________
Salt Lake City__________

77.8
86.1
80.0

80.5
87.8
80.9

78.6

80.0

Los Angeles-------- --------Portland, Oreg__________
San Francisco-....................
Seattle----- ------- ------------

74.0
80.9
83.1
80.1

74.9
82.3
85. 1
81.5

83.5
91.8
84.5
82.2

78.9
83.4
84.3
86.2

74.6 1
79.9
82.7
81.3

61.4
62.8
68.5
62.7

70.6
70.9
» 76. 5
72.7

99 5

100.5
99.3
99.5
101.0

99.0
100. 6
103. 7
100.4

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.
» Revised.


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

m

Retail Prices

The Bureau of Labor Statistics collects prices in eight cities that
cannot be included in the food-cost indexes, since no prices are avail­
able for the 1923-25 base period. These cities were selected from
areas which were not adequately represented by the 51 cities in the
current food-cost indexes.
Average prices for each of these cities for which data were available
have been released since June 1935. Consumption weights have been
provided for these cities, making it possible to measure changes in
food costs from one period to another. Percentage changes in food
costs between December 1937 and January 1938 are shown in table 4
for seven of these eight cities.
T able 4.— Percentage Changes in Retail Food Costs for Specified Cities

January 1938 Compared with December 1937
Percentage change Jan. 18, 1938, compared with Dec. 14, 1937
Region and city
All
foods

West North Central:
Cedar Rapids________
Sioux Fall’s __________
Wichita ____________
South Atlantic: WinstonS a le m ________ ______
East South Central: Jackson_________ __ ______
West South Central:
El Paso.-- __________
Oklahoma City_______

-1 .3
-2 .9
-2 .7

Cereals
and
bakery Meats
prod­
ucts

-0 .1
+1.0
- .6

-3 .4
-5 .4
-5 .6

Dairy
prod­
ucts

Eggs

Fruits
and
vege­
tables

Bever­
ages
and
choco­
late

Fats
and
oils

Sugar
and
sweets

-3 .1
-5 .2
-3 .6

-12.8
-13. 9
-16.3

+4.1
+ .5
+2.0

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

-2 .2
-2 .0
-1 .1

+0.4
- .4
0

- .8

-1 .1

-1 .7

- .4

-10.7

+2.1

- .7

-2 .4

+ .7

-1 .5

-2 .1

-2 .7

-2 .6

-10.1

+3.3

+2.5

-1 .9

-2 .4

-3 .5
-5 .0

-1 .0
- .6

- .9
-8 .0

-4 .3
-5 .4

-10.1
-7 .6

-7 .6
-6 . 1

-2 .6
-4 .4

-1 .7
-1 .9

+2.0
- .4

Prices for the Year 1937
On the basis of annual averages, the retail cost of food advanced
3.6 percent between 1936 and 1937. The index rose from 82.1 percent
of the 1923-25 average in 1936 to 85.1 percent in 1937. Although the
index had risen in 1937 to a level 28.2 percent above 1933, it was still
18.3 percent below 1929.
Retail food costs showed a definite upward trend during the first 5
months of 1937. The slight downward tendency during the succeed­
ing 4 months was followed by a sharp decline during the last quarter
of the year which carried the index 0.4 percent below the level of
December 1936.
The most significant features of 1937 food costs were the relatively
high level of meat costs and the sharp drop between May and Septem­
ber in fresh fruit and vegetable costs and their continued low level for
the remainder of the year.

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

794

Monthly Labor Review—March 1938

DETAILS BY COMMODITY GROUPS
Cereal and bakery products costs for 1937 were 2.8 percent above
1936. These costs rose during the first half of 1937 along with the
rising bread prices. Bread prices continued at the June level through­
out the remainder of the year. The price of flour, which showed prac­
tically no change during the first half of the year, made a substantial
decline from July to the end of the year. The cost index for cereal
and bakery products moved downward at the same time.
The annual average costs of meats in 1937 were 7.8 percent above
the 1936 level. This is the only group where costs for 1937 were higher
than the average for the 1923-25 base period. The group index which
rose sharply between March and August declined abruptly during the
last quarter of the year. The pattern of price changes for both beef
and pork was similar to the movement of the meat index.
Although the costs for dairy products in 1937 averaged 3.7 percent
higher than for 1936, changes in the index during 1937 followed rather
closely the usual seasonal movement of costs for this group. The
trend of the index was downward from January to June, when it began
the upward movement that continued until December. Advances
in the last quarter of the year raised the December 1937 index 7.0
percent above the level for December 1936.
Seasonal influences were dominant in the 1937 movement of egg
prices. Variations in these prices during the year, however, were
restricted to a much smaller range than usual. Prices throughout
the year averaged 1.8 percent below 1936.
Fruits and vegetables shared with eggs the distinction of being the
only food groups whose costs were lower in 1937 than in 1936. This
group showed the slight decrease of 0.1 percent. The group index is
largely controlled by changes in the costs of the fresh items and the
index for the fresh products was 1.5 percent below that reported for
1936. Although fresh fruit and vegetable prices ordinarily decline
during the summer and fall months, the drop which took place after
May was exceptionally large. Reductions of more than 45.0 percent
occurred in the prices of apples, potatoes, sweetpotatoes, and cabbage
during these months, while the index for all fresh items fell 34.3 per­
cent. The index for the canned items averaged 2.9 percent higher
than for the previous year. The prices of these items fluctuated
within a narrow range throughout the entire year. Dried fruits and
vegetables, for which there was an average increase of 17.6 percent over
1936, showed comparatively little change during the first 8 months of
the year. The decline between August and December was due in large
measure to the drop in the price of dried beans. The price of navy
beans increased 13.0 percent between January and April to a 6-year
high. The decline which was first indicated in August brought the
price for December down to a more normal level.

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

795

Retail Prices

The annual average for fats and oils indicates that costs in 1937
were 3.7 percent above those for 1936. During the first 9 months of
1937 there was little change from month to month, although costs
throughout this entire period were higher than in 1936. Price reduc­
tions for lard and lard compound contributed very largely to the de­
cline which occurred during the last quarter of the year.
Due to a gradual advance in the prices of coffee and tea throughout
the greater part of 1937, the index for beverages and chocolate was 3.4
percent higher than for 1936. The average cost of sugar and sweets
was 2.5 percent higher in 1937 than in 1936. This increase was shown
for corresponding months throughout the year. Higher prices for
each item in this group contributed to this advance.
Indexes of retail food costs are summarized in table 5 by major
commodity groups for each year from 1929 to 1937 and for each month
of 1937.
T able 5.

—Indexes of Retail Food Costs in 51 Large Cities Combined,1 by Commodity
Groups
1929 to 1937, Inclusive
[1923-25 = 100]

Year, month,
and day

Cereals
Fruits and vegetables
Bev­
and
Dairy
erages Fats Sugar
All bakery
Meats
prod­
Eggs
and
and
and
foods prod­
ucts
oils sweets
Total Fresh Canned Dried choco­
ucts
late
B y y e a rs

1929__________
1930__________
1931__________
1932__________

104.7
99.6
82.0
68.3

98.1
95.1
83.5
75.5

121.1 102.9 101.2
113.6 95.1 85.4
96.4 80.8 67.2
75.5 66.7 57.9

98.4
103.4
73.3
60.4

98.1
101.9
72.9
59.9

96.8
92.3
80.3
71.0

103.8
96.4
72.1
55.4

110.0
95.7
83.2
75.1

93.1
86.7
70.4
52.0

74.6
70.1
64.7
58.4

1933__________
1934__________
1935_________
1936__________
1937__________

66.4
74.1
80.4
82.1
85.1

77.4
91.0
92.9
91.7
94.3

65.7
75.0
96.1
94.7
102.1

65.2
71.2
76.7
80.2
83.2

65.8
69.8
60.6
69.7
69.6

66.6
69.6
58.6
69.1
68.1

68.5
80.7
82.7
79.8
82.1

53.6
61.3
61.8
61.9
72.5

68.4
71.7
70.3
67.5
69.8

48.6
55.4
81.5
75.6
78.4

61.5
63.8
65.0
64.4
66.0

55.3
62.4
73.5
72.7
71.4

B y p r ic e -r e p o r tin g p e rio d s fo r 1937

J a n .12_______
Feb. 16_______
Mar. 16____ __
Apr. 13...............

84.6
84.5
85.4
85.6
86.5
June 15_______ 86.3

92.4
92.6
92.9
93.8
95.2
95.6

95.7
94.3
95.4
97.7
99.7
102.3

83.4
83.0
83.6
81.6
80.1
79.7

76.3
65.0
64.3
64.7
61.8
62.5

74.4
78.2
80.5
80.0
83.1
79.2

73.5
77.7
80.1
79.5
83.0
78.5

81.8
82.2
82.6
82.8
83.2
83.4

71.8
74.5
76.0
76.4
76.6
76.6

68.6
68.9
69.3
69.6
69.7
70.0

79.6
80.1
80.3
80.2
78.9
79.5

64.8
65.6
65.6
66.0
66.1
65.7

July 13.............
Aug. 17_______
Sept. 14_______
Oct. 12_______
Nov. 16_______
Dec. 14.... ..........

95.7
95.6
95.1
94.7
94.0
93.7

107.8
111.6
111.4
108.8
102.8
98.0

80.9
81.9
83.9
85.1
86.6
88.2

68.0
71.9
79.0
81.6
84.9
76.7

69.0
61.0
59.2
56.5
56.2
58.4

67.0
58.0
56.3
53.5
53.5
56.2

83.5
82.7
82.0
81.0
80.5
79.9

76.3
75.0
72.2
67.9
64.1
62.4

70.4
70.7
70.4
70.3
70.1
69.4

79.5
79.9
78.4
77.5
74.8
72.0

65.1
64.8
66.5
67.4
67.1
66.8

85.9
85.5
85.8
84.9
83.6
82.6

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 with the use of population weights.

A comparison with the preceding year indicates that prices of 67 of
the 84 foods included in the index averaged higher in 1937 while 17
were lower. Details by individual items and indexes by cities are
given in the Retail Price monthly report for January 1938, copies
of which will be furnished upon request.

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

Monthly Lahor Review—March 1938

796

COAL PRICES IN DECEM BER 1937
THE rise in retail coal prices between September 15 and December 15
was largely seasonal. The average price of bituminous coal in 38
cities combined increased 1.8 percent during this period. At the
same time the weighted average price of Pennsylvania anthracite in
25 cities combined advanced 3.0 percent for the stove size and 2.7
percent for the chestnut. Pea- and buckwheat-size anthracite were
added to the Bureau’s retail coal-price series in 1937. During the
last quarter of the year the average price of the pea size rose 2.1 per­
cent. Buckwheat prices advanced 1.4 percent.
The December 15 indexes (October 1922-September 1925=100)
were 90.1 for the bituminous coal, 79.1 for stove-size Pennsylvania
anthracite, and 80.3 for the chestnut size. The bituminous-coal
index was 2.2 percent above the December 1936 level, while the stoveand chestnut-size anthracite showed reductions for the year of 5.6
and 4.7 percent respectively.
Retail coal prices are collected each quarter from representative
dealers in 51 cities throughout the United States. These quotations
are based on the cash delivered price in 1-ton lots of the grades and
sizes of coal which predominate in sales to household users in each
city. The price series for bituminous coal covers 38 cities, 14 of
which report on low-volatile or smokeless coal as well as high-volatile.
The Pennsylvania anthracite series includes 25 cities, and 6 western
cities usually report prices for anthracite other than Pennsylvania.
Combined average retail prices of bituminous coal in 38 cities and
Pennsylvania anthracite in 25 cities of the United States are pre­
sented in table 8 for December and September 1937 and December
1936.
T

able

8 . — Average

Retail Prices of Coal in Large Cities Combined
December and September 1937, and December 1936
Average retail price
per ton of 2,000
pounds

Article

Bituminous coal (38 cities)______________
Pennsylvania anthracite (25 cities), new
series:2

1937

1936
Dec.
15

Percentage
Index of retail price change,
(October 1922-Sep­ 15, 1937, Dec.
com­
tember 1925=100) pared with—
1936

1937

1936

Sept.
15

Dec.
15

Sept.
15

Dec
15

1937

Dec.
15

Sept.
15

Dec.
15

$8. 72

$8. 60 1$8. 57

90. 1

88.5

88.2

+1.8

+2 2

It. 13
11.28
9. 28
7. 77

10.80 11.80
10. 98 111.83
9.08
9. 86
7. 66
0)

79. 1
80.3

76.8
78.2

83.9
84.2

+3.0
+2.7
+2. 1
+1.4

-5 .6
-4 .7
-6 .0

1 Revised.
2 Weighted on the basis of the distribution by rail or rail and tidewater to each city during the 12-month
period from Aug. 1, 1935 to July 31, 1936.
3 Insufficient data.


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

797

Relu il I’rices

Prices, 1929 to December 1937
Retail coal prices were collected by the Bureau of Labor Statistics
in the 51 cities covered by the retail food price series on the 15th of
each month from June 1920 to July 1935. Quarterly collection was
initiated in July 1935 and January, April, July, and October were
selected as the months for pricing. In September 1936 the repre­
sentative month for each quarter was shifted to March, June, Sep­
tember, and December to conform with the change in the pricing cycle
for the Bureau’s cost-of-living series.
The average price of bituminous coal in 38 cities combined dropped
13.6 percent from 1929 to 1933. There was a sharp advance in 1934,
followed by a gradual upward trend which raised this average to a
level in 1937 only 3.2 percent below 1929.
Combined average prices and indexes for bituminous coal and stove
and chestnut sizes of Pennsylvania anthracite are shown in table 9 for
the cities combined by years from 1929 to 1937 and for the indicated
months of the last 2 years of this period.
T able 9.— Average Retail Coal Prices and Indexes for Large Cities Combined

1929 to December 1937, Inclusive
Average price per ton of 2,000 pounds

Date

Bituminous
(unweighted
average, 38
cities)

1929........ ................ ........
1930 ________ ______
1931_________________
1932_____ ___________
1933...............................
1935_________________
1936___ _____________
1937.............................. .
1936:
January__________
April-------- -------July..........................
September________
December________
1937:
March___________
June....... ................
September...............
December................
1 Revised.


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

Index (October 1922-September
1925=100)

Pennsylvania anthracite
Pennsylvania anthracite
(weighted average, 25
(weighted average, 25
Bituminous
cities)
cities)
(unweighted
average, 38
cities)
Stove
Chestnut
Chestnut
Stove

$8.85
8.83
8. 33
7. 71
7.65

$14.14
14.03
13.68
12. 55
12.12

$13. 70
13.66
13.65
12.45
11.93

91.5
91.3
86.2
79.7
79.1

100.5
99.7
97.1
89.2
86.2

97.7
97.3
97.3
88.7
85.0

8.26
8.29
8. 42
8. 58

12.18
11.38
11.74
11.05

11.92
11.14
11.60
11.19

85.4
85.7
87.1
88.4

86.6
80.9
83.5
78.5

85.0
79.4
82.7
79.6

8. 58
8.57
8.13
8.35
i 8.57

12.07
11.80
11.36
11.68
11.80

11.76
11.61
11.20
11.63
• 11.83

88.7
88.6
84.1
86.0
88.2

85.8
83.9
80.7
83.0
83.9

83.8
82.8
79.8
82.8
84.2

i 8.61
8. 39
8.60
8. 72

i 11.76
10.49
10.80
11.13

i 11.84
10.66
10. 98
11.28

88.6
86.4
88.5
90.1

83.5
74.5
76.8
79.1

84.3
75.9
78.2
80.3

798

Monthly Labor Review—March 1938

The trend of the weighted average prices of both stove- and chest­
nut-size Pennsylvania anthracite in 25 cities combined was downward
from 1929 through 1935. After a slight advance in 1936, these prices
fell in 1937 to their lowest level since 1920. The 1937 averages showed
reductions below the average for 1929 of 21.9 percent for the stove
size and 18.4 percent for chestnut.
Details by Cities
Details by cities are given in the Retail Price monthly report for
January 1938, copies of which will be furnished upon request.


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

JVholesale Prices

WHOLESALE PRICES IN JANUARY 1938
THE downward movement in commodity prices continued through
January marking a 6-month period of falling prices. From July 1937
to January 1938 commodity prices at wholesale declined 8.0 percent.
Largely as a result of pronounced decreases in prices of farm prod­
ucts and foods, the all-commodity index decreased 1.0 percent between
December 1937 and January 1938. The decline placed the January
index at 80.9 percent of the 1926 average, representing a decrease of
5.8 percent from January a year ago.
Seven of the 10 major commodity groups averaged lower in January
1938 than in December 1937. The decreases ranged from only 0.1
percent for fuel and lighting materials to 4.4 percent for foods. The
metals and metal products, chemicals and drugs, and miscellaneous
commodities groups advanced fractionally. Compared with January
a year ago, wide price fluctuations have been recorded in all groups
except building materials.
Raw material prices at wholesale dropped 0.7 percent to the lowest
level reached in the past 3 years and are 15 percent below the Jan­
uary 1937 level. Average prices of semimanufactured commodities
and finished products continued to decline. A decrease of 1.0 per­
cent in the former group during the month interval brought the
January index to a point 10.0 percent below a year ago. Although
finished products prices dropped 1.2 percent during January, they are
less than 1 percent below the January 1937 level.
Nonagricultural commodities, as measured by the index for “All
commodities other than farm products”, decreased 0.8 percent during
January and are 2.1 percent below a year ago. Industrial commodity
prices, according to the index for “All commodities other than farm
products and foods”, declined slightly but are above the corresponding
month of last year.
A comparison of the January 1938 level of wholesale commodity
prices with December and January 1937 is shown in table 1.
799


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

Monthly Labor Review—March 1938

800

T able 1.— Comparison of Index Numbers of Wholesale Prices for January 1938 With

December 1937 and January 1937
¡1926 = 100]

Commodity group

All commodities----------------- --------------------- ------

January
1938

Decem­
ber 1937

Change
from a
month
ago

January
1937

80.9

81.7

-1 .0

85.9

Change
from a
year ago
-5 .8

Farm products_______________________________
Foods____________________________ ---------------Hides and leather products------------------------------Textile products---------------------------------------------Fuel and lighting materials------------------ -------------

71.6
76.3
96.7
69.7
78.3

72.8
79.8
97.7
70. 1
78.4

- 1 .6
-4 .4
-1 .0
- .6
-, 1

91.3
87.1
101.7
77.5
76.6

Metals and metal products-----------------------------Building materials------------------ -----------------------Chemicals and drugs-------------------------- -----------Housefurnishing goods.. . . -------------------------------Miscellaneous-------------------------- - - - - — -----------

96.6
91.8
79.6
88.3
75.2

96.3
92.5
79.5
89.7
75.0

+ .3
- .8
+ .1
-1 .6
+ .3

90.9
91.3
87.7
86.5
76.2

+6.3
+.5
-9 .2

74.9
76.9
84.3
82.8
83.5

75.4
77.7
85.3
83.5
83.6

- .7
-1 .0
-1 .2
- .8
-. 1

88.1
85.4
84.9
84.6
83.4

-15.0

Raw materials------------------------- --------------------Semimanufactured articles-------------------------------Finished products------------------------------------------All commodities other than farm products-----------All commodities other than farm products and foods.

21.6

-

-12.4
-4 .9

10. 1

-

+ 2. 2

+ 2.1

-1 .3

10.0

-

- .7
-

2.1

+. 1

Wholesale Price Level in January
The January all-commodity index dropped 1.0 percent to 80.9
percent of the 1926 average. This is the lowest level reached since
July 1936, and when compared with January 1937 represents a de­
crease of 5.8 percent.
During the month of January wholesale food prices dropped 4.4
percent. Farm products and housefurnishing goods declined 1.6
percent; hides and leather products, 1.0 percent; building materials,
0.8 percent; textile products, 0.6 percent; and fuel and lighting ma­
terials, 0.1 percent. The metals and metal products and miscellane­
ous commodities groups advanced 0.3 percent during the month
interval and chemicals and drugs rose 0.1 percent.
The number of price changes within each of the 10 major com­
modity groups which influenced the movement of the all-commodity
index during January is shown in table 2.
T able 2.— Number of Items Changing in Price From December 1937 to January 1938
Commodity group
All commodities----------------------------------------------------------


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

Decreases

Increases

No change

124

237

452

35
34
6
9
4

27
48
14
41
9

5
40
21
64
11

8
9
5
7
7

21
22
12
18
25

117
55
72
36
31

Wholesale Prices

801

Wholesale prices of raw materials declined 0.7 percent largely
because of sharp reductions in prices of agricultural commodities,
hides and skins, hemp and crude rubber. The group index—74.9—
is 15.0 percent below the level of a year ago. Semimanufactured
commodity prices as a group dropped 1.0 percent during the month
and are 10.0 percent lower than they were a year ago. A pronounced
decline—1.2 percent- was recorded by the finished products group.
The current index—84.3—however, is less than 1 percent below that
for January 1937.
Nonagricultural commodity prices in January, as measured by the
index for “All commodities other than farm products”—82.8—de­
creased 0.8 percent and are 2.1 percent below the corresponding
month of a year ago. Industrial commodity prices have shown little
fluctuation over the month and year periods, according to the index
for “All commodities other than farm products and foods”- 83.5.
They are 0.1 percent below a month ago and 0.1 percent above a year
ago.
During January wholesale food prices fell 4.4 percent to the lowest
point reached in the past 3 years. Decreases of 7.6 percent in dairy
products, 7.0 percent in meats, and 1.9 percent in fruits and vegetables
were largely responsible for the decline. Quotations were lower for
butter, cheese, dried and fresh fruits, fresh beef, lamb, cured pork,
oleo oil, and peanut butter. Cereal products advanced 1.2 percent.
Higher prices were reported for rye flour, fresh pork, veal, cocoa
beans, powdered cocoa, copra, smoked salmon, lard, pepper, edible
tallow, and vegetable oils. Compared with a year ago, the January
food index—76.3—shows a decrease of 12.4 percent.
The farm products group index declined 1.6 percent during the
month because of lower prices for cows, steers, sheep, eggs, lemons,
oranges, fresh milk at New York, tobacco, and sweet potatoes. Grains
advanced 4.9 percent and livestock and poultry averaged 0.1 percent
higher. Among the individual farm products items for which quota­
tions were higher were barley, corn, oats, rye, wheat, hogs, poultry,
cotton, peanuts, seeds, dried beans, and onions. The January farm
products index—71.6—is the lowest since November 1934 and is 21.6
percent below that for January 1937.
The housefurnishing goods group index declined 1.6 percent because
of weakening prices for furniture and furnishings such as blankets,
mattresses, window shades, tubs, and pails.
Sharp declines in wholesale prices of hides and skins together with
smaller decreases in average prices for leather, shoes, and luggage
caused the hides and leather products group index to recede to 96.7
percent of the 1926 average.
Building material prices dropped 0.8 percent during January.
Lower prices were registered for concrete blocks, Douglas fir and

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

802

Monthly Labor Review—March 1938

Ponderosa pine lumber, red cedar shingles, doors, windows, and cer­
tain paint materials. Prices of naval stores, Chinawood oil, and
whiting advanced sharply. Cement and structural steel remained
unchanged at last month’s level.
The textile products group index fell 0.6 percent to the lowest point
reached since May 1935. Further reductions in prices of cotton
goods, including denims, duck, and sateen, together with weakening
prices for men’s shirts, hosiery, underwear, rayon yarns, hemp, rope,
and twine, were responsible for the decrease. Print cloth prices
averaged higher.
A minor decline—0.1 percent—was shown in the fuel and lighting
materials group index between December and January. A pro­
nounced decrease in prices of natural gasoline and Pennsylvania crude
petroleum caused the recession. Average prices of anthracite and
bituminous coal were higher and coke remained firm.
In the metals and metal products group, rising prices for certain
agricultural implements, scrap steel, and tin cans more than offset
declining prices for knobs, locks, wood screws, babbitt metal, and zinc
sheets, with the result that the group index advanced 0.3 percent.
Average wholesale prices of motor vehicles and plumbing and heating
fixtures were stationary.
During January, wholesale prices of cattle feed advanced 12.1
percent. Paper and pulp rose 0.2 percent largely because of a sharp
advance in prices of newsprint paper. Crude rubber declined 2.2
percent and prices of neutral oil and paraffin wax also averaged lower.
The chemicals and drugs group index advanced fractionally to 79.6
percent of the 1926 average. Chemicals, principally fats and oils, and
fertilizer material prices were higher. Wholesale prices of drugs and
pharmaceuticals including acetic acid, pine oil, and mixed fertilizers
were lower.
Index numbers for the groups and subgroups of commodities for
January 1938, December 1937, and for January for each of the past
7 years are shown in table 3.
T able 3.— Index Numbers of Wholesale Prices, by Groups and Subgroups of Commodities
[1926 = 100]
Jan­
uary
193S

De­
cem­
ber
1937

All commodities__________

80.9

81.7

85.9

80.6

78.8

72.2

61.0

67.3

78.2

Farm products.................
Grains.. ......... .............
Livestock and poultry..
Other farm products___

71.6
75.0
78.5
66.1

72.8
71.5
78.4
69.3

91.3
113.0
91.4
84.8

78.2
78.9
89.1
70.8

77.6
88.8
73.3
76.6

58.7
63.7
41.1
67.4

42.6
32.9
37.8
48.7

52.8
46.7
53.4
54.8

73.1
62.4
75.2
75.3

Groups and subgroups


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

Jan­
uary
1937

Jan­
uary
1.936

Jan­
uary
1935

Jan­
uary
1934

Jan­
uary
1933

Jan­
uary
1932

Jan­
uary
1931

803

Wholesale Prices
T able 3.— Index Numbers of Wholesale Prices, by Groups and Subgroups of

—Continued

Commodities

[1926=100]

G ro u p a n d su b g ro u p

Jan­
u a ry
1938

D e­
cem ­
ber
1937

Jan­
u a ry
1937

Jan­
u a ry
1936

Jan­
u a ry
1935

Jan­
u a ry
1934

Jan­
u a ry
1933

Jan­
u a ry
1932

Jan­
u a ry
1931

F o o d s......................... .................
D a iry p ro d u c ts .................
C ereal p ro d u c ts —............
F r u its a n d v e g e ta b le s ...
M e a ts ...................................
O th e r foods........................

76.3
83.3
83.0
56.7
82.6
69.5

79.8
90.2
82.0
57.8
88.8
71.5

87.1
88.9
88.1
82.4
90.6
82.1

83.5
84.2
92.1
62.2
94.9
75.5

79.9
83.5
91.6
62.8
81.6
76.2

64.3
65.0
85.8
68.0
48.9
64.0

55.8
55.2
60.9
53.0
49.5
60.1

64.7
67.8
71.0
62.2
61.9
61.9

80.7
83.7
75.7
76.9
88.4
74.5

H id e s a n d le a th e r p ro d u c ts .
Shoes.................. .............. .
H id e s a n d s k in s-----------L e a th e r................ ...............
O th e r le a th e r p ro d u c ts ..

96.7
104.7
82.3
86.6
102.4

97.7
105.6
85.5
86.9
102.7

101.7
99.7
116.0
94.3
101.1

97.1
100.5
100.5
87.3
95.3

86.2
97.1
71.1
74.3
85.0

.89.5
98.5
77.2
79.9
87.0

68.9
83.3
43.0
57.1
78.2

79.3
88.8
49.0
77.5
98.9

88.7
95.1
64.4
90.8
102.3

T e x tile p ro d u c ts .................. ..
C lo th in g ________ ______
C o tto n goods____ _____
H o siery an d u n d e rw e a r.
S ilk a n d ra y o n -------------W o olen a n d w orsted
goods________________
O th e r te x tile p r o d u c ts ...

69.7
86.3
68.2
63.0
28.9

70.1
86.7
68.7
63.4
29.4

77.5
83.9
91.9
64.4
34.5

71.7
80.8
80.4
61.8
33.5

70.3
78.4
84.1
63.5
28.6

76.5
87.5
86.5
70.6
29.7

51.9
61.9
50.1
48.4
27.0

59.6
69.6
55.8
55.8
37.7

71.3
79.1
73.5
64.8
49.0

83.8
67.7

83.5
68.5

91.9
66.2

81.4
67.8

73.8
68.8

84.3
76.9

53.4
66.3

63.3
70.7

73.7
77.2

F u e l an d lig h tin g m a te ria ls .
A n th ra c ite ........ .................
B itu m in o u s c o a l..............
C o ke__________ _______
E le c tric ity ............ .............
G as...................... .................
P e tro le u m p ro d u c ts ------

78.3
80.1
103.2
105.5
0)
(0
58.8

78.4
80.0
101.1
105.5
83.1
81.3
59.5

76.6
81.6
96.8
97.6
81.0
82.2
58.3

75.1
82.3
98.7
92.7
83.1
83.2
54.4

72.9
82.3
96.3
86.4
89.9
87.6
48.8

73.1
81.5
90.8
83.5
92.3
90.8
51.1

66.0
88.7
79.8
75.3
103.2
96.7
38.7

67.9
94.8
84.4
80.5
107.5
98.6
38.8

73.3
88.9
88.1
83.8
99.9
95.8
50.4

M e ta ls a n d m e ta l p ro d u c ts .
A g ricultural im plem ents.
F a r m m a c h in e ry ----------Iro n a n d stee l—............ .
M o to r vehicles 2 ---------N o nferrous m e t a l s ------P lu m b in g a n d h e a tin g ..

96.6
96.2
97.7
99.6
95.6
75.0
79.6

96.3
96.1
97.6
99.0
95.6
75.1
79.6

90.9
93.0
92.5
91.7
86.3
84.8
77.1

86.7
94.6
92.2
87.1
0)
69.7
71.7

85.8
92.7
90.3
85.7
(')
67.6
68.0

85.5
85.2
83.6
0)
66.1
72.5

78.2
84.5
(>)
78.5
«
46.4
62.8

81.8
85.5
0)
79.9
55.4
74.1

86.9
94.4
0)
85.5
0)
69.5
87.4

B u ild in g m a te ria ls .................
B ric k a n d tile ............ .......
C e m e n t_______________
L u m b e r_______________
P a in t a n d p a in t m ater i a l s ........... .............. ..
P lu m b in g a n d h e a tin g —
S tru c tu ra l ste e l________
O th e r b u ild in g m a ter ia ls .________________

91.8
91.8
95.5
92.6

92.5
92.0
95.5
93.8

91.3
89.7
95.5
93.0

85.7
88.4
95.5
82.2

84.9
91.1
93.9
79.9

86.3
86.6
93.9
87.4

70.1
74.9
81.2
55.9

74.8
79.3
75.2
65.6

83.8
87.0
90.3
76.4

80.1
79.6
114.9

80.2
79.6
114.9

83.7
77.1
104.7

79.6
71.7
92.0

79.0
68.0
92.0

78.4
72.5
86.8

68.1
62.8
81.7

75.4
74.1
77.3

83.2
87.4
83.0

0)

(0

95.8

96.9

93.9

90.2

90.3

89.8

79.4

81.0

87.8

C h em icals a n d d r u g s --------C h em ica ls......... .................
D ru g s a n d ph arm aceu ticals________________
F ertiliz er m a te ria ls_____
M ix ed fertilizers-----------

79.6
84.1

79.5
83.5

87.7
96.4

80.5
87.6

79.3
84.5

74.4
78.8

71.6
79.3

75.7
80.6

84.5
88.3

74.0
72.1
73.4

75.1
72.0
74.4

79.0
70.6
71.4

74.0
64.4
68.8

73.1
66.5
73.3

65.2
68.4
71.2

54.9
62.3
62.7

60.6
69.9
75.5

65.3
81.4
90.4

H o u se fu rn ish in g goods-------F u rn ish in g s... —............
F u r n itu r e ............................

88.3
92.8
83.7

89.7
93.5
85.9

86.5
89.0
84.0

81.4
84.8
77.9

81.2
84.3
78.2

80.8
82.9
78.8

72.9
73.5
72.3

77.7
76.1
79.5

88.3
84.9
92.1

M iscellaneous...........................
A u to m o b ile tire s an d
tu b e s ________________
C a ttle feed_____________
P a p e r a n d p u lp ________
R u b b e r, c ru d e -------------O th e r m iscellan eo u s___

75.2

75.0

76.2

67.8

70.7

67.5

61.2

65.6

72.2

57.4
91.6
90.0
30.5
82.4

57.4
81.7
89.8
31.2
82.7

51.8
135.4
84.8
44.3
83.1

45.0
68.6
79.8
29.8
80.4

47.5
116.2
81.5
26.5
80.4

43.2
68.5
83.0
18.9
81.8

44.6
38.2
72.0
6.5
76.8

39.7
53.0
78.0
9.3
85.2

47.2
75.0
83.6
17.1
89.9

74.9
76.9
84.3

75.4
85.3

88.1
85.4
84.9

78.1
74.8
82.4

76.6
71.2
80.8

64.1
71.9
76.0

50.2
56.9
66.7

58.3
63.1
72.1

72.7
73.7
81.5

82.8

83.5

84.6

80.9

78.9

75.0

64.9

70.3

79.3

83.5

83.6

83.4

78.8

77.7

78.3

67.3

71.7

79.0

Raw m a te ria ls ..........................
S em im an u fa ctu red a rtic le s..
F in is h e d p ro d u c ts — .......... ..
A ll co m m odities o th e r th a n
farm p ro d u c ts ...................
A ll co m m odities o th e r th a n
farm p ro d u c ts a n d fo o d s ..

77.7

i Data not available.


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

8 Preliminary revision.

Monthly Labor• Review—March 1938

804

Index Numbers by Commodity Groups, 1926 to January 1938
Index numbers of wholesale prices by commodity groups, by years
from 1926 to 1937, inclusive, and by months from January 1937 to
January 1938, inclusive, are shown in table 4.
T able 4.— Index Numbers of Wholesale Prices, by Groups of Commodities
[1926 = 100]

Year and month

Hides Tex­ Fuel Metals Build­ Chem­ House- Misfurand
Farm
and
ing
celtile
and metal
icals nishprod­ Foods leather prod­
lanemate­ and
prod­
ing
prod­ ucts light­
ucts
rials
drugs
ing
goods ous
ucts
ucts

All
com­
modi­
ties

By years:
1926___________
1927___________
1928___________
1929___________

100.0
99.4
105.9
104.9

100.0
96.7
101.0
99.9

100.0
107. 7
121.4
109.1

100. 0
95.6
95.5
90.4

100.0
88.3
84.3
83.0

100.0
96.3
97.0
100.5

100.0
94.7
94.1
95.4

100.0
96.8
95.6
94.2

100.0
97.5
95.1
94.3

100.0
91.0
85.4
82.6

100. 0
95.4
96. 7
95.3

1930___________
1931___________
1932___________
1933___________

88.3
64.8
48.2
51.4

90.5
74.6
61.0
60.5

100.0
86.1
72.9
80.9

80.3
66.3
54.9
64.8

78.5
67.5
70.3
66.3

92.1
84.5
80.2
79.8

89.9
79.2
71.4
77.0

89.1
79.3
73.5
72.6

92.7
84.9
75.1
75.8

77.7
69.8
64.4
62.5

86.4
73.0
64.8
65.9

65.3
78.8
80.9
86.4

70.5
83.7
82.1
85.5

86.6
89.6
95.4
104.6

72.9
70.9
71.5
76.3

73.3
73.5
76.2
77.6

86.9
86.4
87.0
95.7

86.2
85.3
86.7
95.2

75.9
80.5
80.4
83.9

81.5
80.6
81.7
89.7

69.7
68.3
70.5
77.8

74.9
80.0
80.8
86.3

91.3
91.4
94.1
92.2
89.8
88.5

87.1
87.0
87.5
85.5
84.2
84.7

101.7
102.7
104.2
106.3
106.7
106.4

77.5
77.5
78.3
79.5
78.7
78.2

76.6
76.8
76.2
76.8
77.2
77.5

90.9
91.7
96.0
96.5
95.8
95.9

91.3
93.3
95.9
96.7
97.2
96.9

87.7
87.8
87.5
86.9
84.5
83.6

86.5
87.9
88.4
89.0
89.3
89.5

76.2
77.3
79.5
81.1
80.5
79.4

85.9
86.3
87.8
88.0
87.4
87.2

89.3
86.4
85.9
80.4
75.7
72.8

86.2
86.7
88.0
85.5
83. 1
79.8

106.7
108.1
107.6
106.7
101.4
97.7

78.3
77.1
75.3
73.5
71. 2
70.1

78.1
78.4
78.7
78.5
78.2
78.4

96.1
97.0
97.1
96.4
96.8
96.3

96.7
96.3
96.2
95.4
93.7
92.5

83.9
82.2
81.4
81.2
80.2
79.5

89.7
91. 1
91.1
91.0
90.4
89.7

79.0
77.3
77.0
76.2
75.4
75.0

87.9
87.5
87.4
85.4
83.3
81.7

71.6

76.3

96.7

69.7

78.3

96.6

91.8

79.6

88.3

75.2

80.9

1934___________
1935___________
1936___________
1937___________
By months:
1937:
Ja n u a ry .._ __
February___
M arch______
April ______
M ay_______
June_____ _
July________
August...........
September__
O ctober... ..
November. _.
December. ..
1938:
January____

The price trend since 1926 is shown in table 5 for the following
groups of commodities: Raw materials, semimanufactured articles,
finished products, commodities other than farm products, and com­
modities other than farm products and foods. The list of commodities
included under the classifications “Raw materials,” “Semimanufac­
tured articles,” and “Finished products” was given in the December
1937 issue of the Wholesale Price pamphlet.


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

805

Wholesale Prices

T able 5.— Index Numbers of Wholesale Prices, by Special Groups of Commodities
[1926=100]

Raw
Year and month mate­
rials

1926
1927
1928 .
1929
1930
1931

_____ 100.0
96.5
______ 99. 1
97. 5
84. 3
65. 6

1932___________
_______
1933
1934-_ . __ __
1935
1936
1937

All
com­
mod­
ities
other
than
farm
prod­
ucts
and
foods

Year and month

100.0 100.0 100.0
94. 3 95. 0 94. 6
94.5 95.9 94. 8
93. 9 94. 5 93. 3
81.8 88.0 85.9
69.0 77.0 74.6

100.0
94.0
92.9
91. 6
85. 2
75.0

68.3
69.0
76.9
80.2
80. 7
86.2

70.2
71.2
78.4
77.9
79.6
85.3

1937:
January____
February___
M arch__ ...
April_______
M ay_____ June_______

Semim an­
ufac­
tured
arti­
cles

55.1
56. 5
68. 6
77.1
79. 9
84.8

Fin­
ished
prod­
ucts

59.3
65. 4
72.8
73.6
75.9
85.3

70.3
70.5
78. 2
82.2
82.0
87.2

All
com­
mod­
ities
other
than
farm
prod­
ucts

July-----------A u g u st___
September__
O ctober..- November__
December___
1938:
January____

SemiRaw manmate­ ufacrials tured
arti­
cles

Fin­
ished
prod­
ucts

All
com­
mod­
ities
other
than
farm
prod­
ucts

All
com­
mod­
ities
other
than
farm
prod­
ucts
and
foods

88. 1
88.3
90. 1
88.7
87. 1
86. 1

85.4
85.5
89.6
89.5
87.5
80.8

84.9
85.4
86.4
87.4
87.5
87. 7

84.6
85.0
86. 3
86.9
86.7
86.8

83.4
84.1
85. 5
86. 5
86.3
86. 1

86.5
84.8
84.4
80.7
77.2
75.4

87.0
86. 6
85. 3
82.5
79.8
77.7

88.8
89.0
89.1
88.1
86.7
85. 3

87. 5
87.6
87.6
86.4
84.8
83.5

86. 3
86. 1
85.9
85. 1
84. 3
8?. 6

74.9

76. 9

84.3

82.8

83.5

Weekly Fluctuations
Except for a slight upward tendency toward midmonth, wholesale
commodity prices fell steadily throughout January. The cumulative
decrease in the all-commodity index during the 5-week period,
December 25 to January 29, was 1.1 percent. The negligible upward
movement in the general index during the week ended January 15
was occasioned by a sharp increase in prices of agricultural com­
modities.
T

able

6.

—Weekly Index Numbers of Wholesale Prices, by Commodity Groups, December
1937 and January 1938
[1926=100]
Jan.
29,
1938

Commodity group

Jan. Jan.
15,
22,
1938 1938

Jan.
8,
1938

Jan. Dec. Dec. Dec. Dec.
4.
1,
25,
18,
11,
1938 1937 1937 1937 1937

All commodities--------------- --------------------- 80.3

80.8

81.0

80.8

81.0

81.2

81.5

81.9

82.0

Farm products__ _____________________ - 70.8
74.6
Hides and leather p r o d u c t s . ------------- 96.3
68.9
Fuel and lighting m aterials............................. 79.0

71.8
76. 1
97.1
69.0
79.1

73.4
76.8
97.4
69.3
78.8

72.7
76.8
97.9
69. 2
78.8

73.0
77.8
98.3
69. 4
78.7

72.9
78.9
98.4
69.4
78.6

73.2
79.7
98.2
69. 5
78.6

73.4
80.7
98.3
69.9
78.6

73.9
80. 7
99.8
69.8
78.6

96.3
91.8
79.2
90.7
75.2

96.5
92.0
79.5
90.7
75.1

96.5
92.1
79.5
90.8
75.0

96.1
92.3
79.2
90.8
74.5

96.1
92.4
79.2
91.2
74.6

96.2
92. 5
79.2
91. 4
74.9

96.4
92.8
79.1
92.1
74. 8

96.2
93.0
78. 9
92.1
74. 8

96.3
93.0
79. 4
92.1
75.1

74. 1
------- 77.0
84. 1
All commodities other than farm products---- 82.4
All commodities other than farm products
and foods_________ ____-...............-........... 83.5

74.7
77.5
84.5
82.8

75.9
77.6
84.4
82.8

75.3
77.0
84.3
82.6

75.5
77.2
84.6
82.8

75.3
77.4
85. 0
83.1

75.2
77.6
85.5
83.4

75.3
78.1
85. 9
83. 8

75.7
78. 4
85. 9
83. 8

83.7

83.6

83.5

83.6

83.6

83.7

83. 7

83.9

Metals and metal products------ -------------Building materials----- ------------------------ . ..
Chemicals and drugs---- -- ----- ------ ------- -Housefurnishing goods-----------------------------Miscellaneous------------------- ------- -------------Semimanufactured articles.


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

.

.

806

Monthly Lahor Review—March 1938

Wholesale food prices fell sharply during January registering a
decrease of 5.4 percent between December 25 and January 29. Farm
product prices declined 2.9 percent during this period; hides and
leather products, 2.1 percent; building materials and housefurnishing
goods, 0.8 percent; and textile products, 0.7 percent. Three groups
registered small increases. Fuel and lighting materials advanced 0.5
percent; miscellaneous commodities, 0.4 percent; and metals and
metal products, 0.1 percent.
Weekly price variations in the 10 major commodity groups during
January are shown by the index numbers in table 6. The percentage
changes from week to week are given in table 7.

(

)

T able 7.— Weekly Changes Percent During January 1938, by Groups of Commodities
Percentage change from—
Commodity group

All commodities___________ . . . .

Dee. 25 J a n .22 J a n .15 Jan. 8 Jan. 1 Dec. 25
to
to
to
to
to
to
Jan. 29 J a n .29 J a n .22 J a n .15 Jan. 8 Jan. 1
___________

-1 .1

-0 .6

-0 .2

+0.2

-0 .2

- 0 .2

Farm products________ ________________________
Foods.____ ___________________________________
Hides and leather products.............................................
Textile products ________ ________ ______________
Fuel and lighting materials_______________ _____ _

-2 .9
-5 .4
-2.1
+ .5

-1 .4
-2 .0
- .8
-. 1
- .1

-2 .2
- .9
- .3
- .4
+■4

+1.0
0
- .5
+ .1
0

- .4
-1 .3
- .4
- .3
+ .1

+ .1
- 1 .4
- .1
0
+ .1

Metals and metal products___ _______ ___________
Building materials_______________________ ______
Chemicals and drugs__ _______________ _________
Housefurnishing goods___ ___ _______ __________
Miscellaneous_____ _____ ______________ _______

+ .1
- .8
0
—. S
+•4

- .2
- .2
- .4
0
+ .1

0
- .1
0
- .1
+ .1

+ .4
-. 2
+•4
0
+■7

0
- .1
0
- .4
- .1

-. 1
1
0
-. 2
- .4

Raw materials______ ___ _______ ________________
Semimanufactured articles. _________ ___________
Finished p ro d u cts..___ ______ _________________
All commodities other than farm products_________
All commodities other than farm products and foods..

- l .f i
- .5
-1 .1
- .8
-, 1

- .8
- .6
- .5
- .5
- .2

-1 .6
- .1
+ .1
0
+ .1

+ .8
+ .8
+ .1
+ .2
+■1

- .3
- .3
- .4
- .2
-. 1

+ .3
- .3
- .5
- .4
0

- .7

Monthly Average Wholesale Prices and Index Numbers of
Individual Commodities
The table showing average wholesale prices and index numbers
of individual commodities formerly appearing in the Wholesale Price
pamphlet is now published semiannually in the June and December
issues. The December 1937 issue showed the data for the year 1937
and for the last 6 months of 1937. The monthly figures will be
furnished currently upon request.


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

Recent Publications o f Labor Interest

FEBRUARY 1938
Agriculture
Part-time farming in the Southeast. By R. H. Allen and others. Washington,
U. S. Works Progress Administration, Division of Social Research, 1937.
xxxviii, 317 pp., maps, charts. (Research Monograph IX.)
In addition to data on labor, living, and social conditions of part-time farmers
on the farms, information is given on their employment and earnings off the farms.
Data from the report are)given in this issue of the Monthly Labor Review.
The response of Government to agriculture. By Arthur P. Chew. Washington,
U. S. Dept, of Agriculture^, 1937. 107 pp.
Brief history of U. S. Department of Agriculture and a description of the
various forms of governmental activity which are carried on in the interest of
farmers.
Labor conditions in Japanese agriculture: A study of the problem of agricultural
population. By H. Isobe. Utsunomiya, 1937. 88 pp., charts. (Bulletin
of Utsunomiya Agricultural College, Section B, Agricultural and forest eco­
nomics, Vol. 2, No. 1.)

Child Labor
Trend of child labor, 1927 to 1936. By Ella Arvilla Merritt. Washington, U. S.
Bureau of Labor Statistics, 1937. 20 pp., charts. (Serial No. R. 677,
reprint from December 1937 Monthly Labor Review.)
Child labor as a relic of the Dark Ages. By Tom Ireland. New York, G. P.
Putnam ’s Sons, 1937. 336 pp., illus.
Child labor facts, 1938. New York, National Child Labor Committee, 1938.
34 pp., chart, illus. (Publication No. 372.)
Digest of current data on extent and distribution of child labor, conditions in
selected occupations, industrial accidents to minors, and State laws dealing with
child labor, with a report on the status of the child labor amendment to the
Constitution. Sources are listed by subject.
Child labor in the tiff mines. By Charles E. Gibbons. New York, National
Child Labor Committee, 1938. 31 pp., illus. (Publication No. 373.)
Report of a field survey in the tiff (barite) mining section of Missouri, dealing
particularly with school attendance and extent of illiteracy among children work­
ing in the mines. The study covers ages, working hours, and earnings of a group
of 86 children under 16 years of age regularly employed in tiff mining. Case
studies show living and social conditions in the area.

Cooperative Movement
Consumers' cooperatives in northern Wisconsin. By Samuel Mermin. Washing­
ton, U. S. Bureau of Labor Statistics, 1937. 18 pp. (Serial No. R. 675,
reprint from December 1937 Monthly Labor Review.)
Estonia—population, cultural and economic life. Tallinn, State Central Bureau
of Statistics, 1937. 279 pp., map, illus. (In English.)
A section of the volume is devoted to the cooperative movement.
807
4 6 5 8 5 — 3 8 ------- 16


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

Monthly Labor Review—March 1938

808

C o st a n d S ta n d a r d s o f L iv in g
By Faith M. Williams and others. Wash­
ington, U. S. Department of Agriculture, 1937. 68 pp., illus. (Technical
Bulletin No. 576.)

F a m i l y liv in g i n K n o t t C o u n ty , K y .

H e a t a n d lig h t: A c o m p a r a tiv e s t u d y o f f u e l c o n s u m p tio n a n d c o s t i n s e l f - s u p p o r tin g
a n d i n d e p e n d e n t f a m i l i e s , B u f fa lo , N . Y .
Buffalo, Buffalo Foundation,

1937.

57 pp.; mimeographed.
E c o n o m ic a n d S o c ia l P r o b le m s

By Willard E. Atkins and James D. Magee.
New York, Harper & Brothers, 1937. 572 pp.
Textbook in economics consisting of a discussion of economic organizations,
relations, practices, and problems, rather than an abstract analysis of economic
doctrines. Three of the twenty-six chapters deal specifically with labor.
T h e p r o b le m o f e c o n o m ic o r d e r .
By C. E. Ayres. New York, Farrar & Rinehart,
Inc., 1938. 92 pp.
.
.
.
The author’s purpose is to make a contribution to the revision of economic
thought and social theory. His viewpoint is indicated by his statement that the
break-down of modern industrial economy is the result ef a deficiency of mass
purchasing power. He would shift the "objective of the social order and the
emphasis of social theory from the accumulation of capital funds to the correction
of the present extreme discrepancy in the distribution of income.
D e m o c r a c y v e r s u s d ic ta to r s h ip .
By Norman Thomas. New York, League for
Industrial Democracy, 1937. 33 pp., bibliography.
The writer’s point of view is summarized in the statement that in order for
democracy to win in a defensive struggle it must be extended on the economic
as well as on the political front.
S o c ia lis m versu s c a p ita lis m .
By A. C. Pigou. London, Macmillan & Co., Ltd.,
1937. 139 pp.
Favors a gradual advance toward nationalized industry and public investment,
with emphasis on the idea, however, that “gradualness implies action, and is not
a polite name for standing still.”
T h e s o c ia lis t c a s e .
By Douglas Jay. London, Faber & Faber, Ltd., 1937.
362 pp.
Attempts to reinterpret the case for socialized investment in the light of British
and world experience and of the trend of economic thought during and since the
great depression. An experimental approach in dealing with the problems of
transition is advocated, and the nature and limits of possible methods are outlined.
T h e s p i r i t a n d s tr u c tu r e o f G e r m a n f a s c i s m .
By Robert A. Brady. London, Victor
Gollancz, Ltd., 1937. 383 pp.
A p r o b le m a p p r o a c h to e c o n o m ic s .

A s o c ia l s t u d y o f P itts b u r g h : C o m m u n ity p r o b le m s a n d s o c ia l s e r v ic e s o f A lle g h e n y
C o u n ty .
By Philip Klein and collaborators. New York, Columbia Uni­

versity Press (for Social Study of Pittsburgh and Allegheny County), 1938.
958 pp., maps, charts, illus.
Part 1, which considers the social and economic background of the community
covered, discusses Allegheny County as a place in which to live, the chances for
making a living there, social legislation, labor organization, housing and sanita­
tion, racial and ethnic stratification, social attitudes, public opinion, and pres­
sure groups. Part 2 takes up specific problems in connection with the organization
of social and health work in the great industrial center surveyed. A summary
of the major recommendations presented to the committee sponsoring the study
is included in an appendix.
L 'a c tiv ité é c o n o m iq u e e n F r a n c e d e la f i n d u X V I I I e siè c le à n o s j o u r s .
By Achille
Viallate. Paris, Librairie des Sciences politiques et sociales, 1937. 489 pp.
A study of the economic development of France from the end of the 18th cen­
tury to the present time.
G r e y c h ild r e n : A s t u d y i n h u m b u g a n d m is e r y i n S o u th W a le s .
By James Hanley.
London, Methuen Publishers, 1937. 230 pp.
Describes conditions confronting idle men and their families in distressed min­
ing villages.

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

Recent Publications of Labor Interest

809

E d u c a tio n a n d G u id a n c e
o f n e g ro e s— a 5 - y e a r b ib lio g r a p h y , 1 9 3 1 - 1 9 8 5 .
Washington, U. S.
Office of Education, 1937. 63 pp. (Bulletin, 1937, No. 8.)
The several heads under which the references are grouped include vocational
education and guidance, educational achievement and measurement, social and
economic aspects, and adult education.
E d u c a tio n

G u id a n c e b ib lio g r a p h y , 1 9 3 5 : A n a n n o ta te d l i s t o f b o o k s, p a m p h le ts , a n d p e r io d ic a l
re fe r e n c e s o n g u id a n c e a p p e a r i n g d u r in g th e c a le n d a r y e a r 1 9 3 5 .
Compiled

by Marion H. Witmer and Maris M. Proffitt. Washington, U. S. Office of
Education, 1937. 65 pp. (Bulletin, 1937, No. 36.)
T r a i n i n g a n d e d u c a tio n a l w o r k o f th e C C C .
By Robert Fechner. (In Labor
Information Bulletin, U. S. Bureau of Labor Statistics, Washington, De­
cember 1937, pp. 5-7, illus.)
E m p lo y m e n t a n d U n e m p lo y m e n t
P r e l i m i n a r y r e p o r t o n to ta l a n d p a r t i a l u n e m p lo y m e n t— s u m m a r y b y S ta le s , c o u n tie s ,
a n d c itie s , a s o f N o v e m b e r 1 6 - 2 0 , 1 9 3 7 .
Washington, U. S. Census of Partial

Employment, Unemployment, and Occupations, 1938. 99 pp.
Certain statistics from the census were published in the February 1938 Monthly
Labor Review.
R e c e n t tr e n d s i n u n e m p lo y m e n t.
Washington, U. S. Bureau of Labor Statistics,
1937. 17 pp. (Serial No. R. 653, reprint from November 1937 Monthly
Labor Review.)
Analysis of the registration records of the U. S. Employment Service, designed
to show how current registration of the unemployed may be used to indicate the
general trend of unemployment.
R e p o r t o n ju v e n i l e e m p lo y m e n t [G r e a t B r i t a i n ] d u r in g 1 9 8 6 .
London, Ministry of
Labor, 1937. 16 pp.
Reprint from Ministry of Labor report for 1936, giving details of employment
and unemployment, transference schemes, and courses of instruction for unem­
ployed juveniles.
E m p lo y m e n t S e r v ic e
F i r s t a n n u a l r e p o r t o f L o u i s v i l l e ’s j u n i o r p la c e m e n t a n d c o u n s e lin g d i v i s i o n o f K e n ­
t u c k y S ta te E m p l o y m e n t S e r v ic e .
Louisville, 1937. 40 pp.
H andbook

fo r

fa rm

p la c e m e n t

Service, 1937. 97 pp.;
Series, Section J. T .-l.)

s u p e r v is o r s .
Washington, U. S. Employment
mimeographed. (Employment Office Manual

H e a lth a n d I n d u s t r i a l H y g ie n e
Washington, U. S. Public Health Service,
National Institute of Health, 1938. Preliminary reports, various paging;
mimeographed.
Reviewed in this issue.

T h e n a tio n a l h e a lth s u r v e y , 1 9 3 5 - 1 9 8 6 .

A n n u a l r e p o r t o f S u r g e o n G e n e r a l o f U . S . P u b l i c H e a lth S e r v ic e , f o r f is c a l y e a r 1 9 3 7 .

Washington, 1937. 164 pp.
A section of the report describes the studies carried out during the year by the
Division of Industrial Hygiene.
R a p p o r t a n n u e l d u s e r v ic e m é d ic a l d u tr a v a il [B e lg iu m 1, 1 9 3 6 .
(In Revue du
Travail, Ministère du Travail et de la Prévoyance Sociale, Bruxelles, January
1938, pp. 1-49.)
This report for 1936 of the Belgian factory medical service contains a brief
discussion of working and health conditions in establishments visited by inspectors,
and presents findings of special studies of occupational diseases.


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

Monthly Labor Review—March 1938

810

R e p o r t o n th e B r i t i s h h e a lth s e r v ic e s : A s u r v e y o f e x is tin g h e a lth s e r v ic e s i n G r e a t
B r i t a i n w i t h p r o p o s a ls f o r f u t u r e d e v e lo p m e n t.
London, Political and Eco­

nomic Planning (PEP), 1937. 430 pp., maps, charts.
A general summary of, and conclusions concerning, public-health services in
Great Britain, including information on industrial health, national health insur­
ance, nutrition, and the extent and cost of ill health.
T h e e ffe c ts o f c o n d itio n s o f a r tif ic ia l lig h tin g o n p e r fo r m a c e o f w o r s te d w e a v e r s .
By
H. C. Weston. London, Industrial Health Research Board, 1938. 29 pp.,
diagrams. (Report No. 81.)
S tu d e n t in te r e s ts a n d n e e d s i n h y g ie n e .
By James F. Rogers, M. D. Washington,
U. S. Office of Education, 1937. 21 pp. (Bulletin, 1937, No. 16.)
Results of a questionnaire study among high-school and college students
regarding the adequacy of courses in hygiene. Much dissatisfaction was expressed
as to the length and content of the courses and methods of instruction.
H e a lth I n s u r a n c e
By Louis S. Reed. New York,
Harper & Bros., 1937. 281 pp.
The author discusses present conditions governing the provision of medical
care, from the standpoint of the physician and that of the public, and presents the
case for adoption in this country of a system of compulsory health insurance.
D ie h r a n k e n v e r S ic h e ru n g 1 9 3 5 m i t v o r lä u fig e n e r g e h n is s e n f ü r d a s f a h r 1 9 3 6 .
Berlin,
Statistiches Reichsamt, 1937. 129 pp., maps, charts. (Statistik des
deutschen Reich, Band 501.)
Report on operation of the sickness-insurance system in Germany during 1935,
with preliminary data for 1936. Statistics of funds, contributions, costs, benefits,
income and expenses, hospitalization, institutional care, and death benefits are
presented.
S i c k n e s s in s u r a n c e i n th e N e th e r la n d s .
Washington, U. S. Bureau of Labor
Statistics, 1937. 10 pp. (Serial No. R. 676, reprint from December 1937
Monthly Labor Review.)
H o m e W o rk
H e a lth in s u r a n c e — th e n e x t s te p i n s o c ia l s e c u r ity .

By P. Maymí Martínez. San Juan, Puerto Rico, Departa­
mento del Trabajo, 1937. 24 pp.; mimeographed. (Publicaciones de
Ilustración Popular, Vol. II, No. 8.)
The status of industrial home work and its legal regulation in various countries
are considered in connection with the present home-work situation in Puerto
Rico and recommendations for its regulation there.
E l tr a b a jo a d o m ic ilio .

H o u s in g
R e p o r t o f A l l e y D w e llin g A u t h o r i t y f o r D i s t r i c t o f C o lu m b ia , f is c a l y e a r J u l y 1, 1 9 3 6 Ju n e 30, 1937.
Washington, 1937. 20 pp., illus.

Reviewed in this issue.
L o c a l r e s id e n tia l c o n s tr u c tio n : S u m m a r y o f n a tio n a l c o n fe re n c e
N o v e m b e r 1 7 , 1 8 , 1 9 3 7 ] a n d s u g g e s tio n s f o r lo c a l c o n fe r e n c e s .

Chamber of Commerce of the United States, [1938?].

[ W a s h in g to n ,

Washington,

51 pp.

V o lu m e o f r e s i d e n t i a l c o n s tr u c tio n , 1 9 2 0 - 3 7 , a n d n u m b e r o f d w e llin g u n i t s b u ilt i n
u r b a n a n d n o n f a r m a r e a s , 1 9 2 0 —3 6 .
By Herman B. Byer. Washington,

U. S. Bureau of Labor Statistics, 1938. 9 pp., charts.
reprint from January 1938 Monthly Labor Review.)

(Serial No. R. 694,

T h e p r e s e n t s ta tu s o f m u n i c i p a l h o u s in g a n d s lu m c le a r a n c e i n th e U n ite d S ta te s .

By Elizabeth Longan. (In American Political Science Review, Menasha,
Wis., December 1937, pp. 1124-1132.)
A review of housing legislation and the extent of municipal machinery to
provide low-rent housing, with citations of court cases determining the powers of
local housing authorities.


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

811

Recent Publications of Labor Interest
F a c ts a n d f ig u r e s r e g a r d in g p r e s e n t h o u s in g s i t u a t i o n i n E n g la n d a n d W a le s
N ovem ber 1 9 8 7 ).
London, National Housing and Town Planning

(r e v is e d ,
Council,

1937. 16 pp.
Brings the various official statistics on number of low-cost houses provided and
the financing of housing projects up to 1937, and showTs the major provisions of
the laws now operative governing subsidy and slum clearance. The results of
the recent overcrowding survey and other pertinent information are also included.
F i n a l r e p o r t o f d e p a r tm e n ta l [ M i n i s t r y o f H e a lth , G r e a t B r i t a i n ] c o m m itte e o n c o n ­
s tr u c tio n o f f l a ts f o r th e w o r k in g c la s s e s . London, 1937. 55 pp., diagrams.
The results of an inquiry into materials and methods of construction suitable
for flats for those with low incomes, taking into account both efficiency and cost.
R e p o r t o f i n te r d e p a r tm e n ta l c o m m itte e o n th e R e n t R e s tr ic tio n s A c ts [G re a t B r i t a i n ] ,
1 9 3 7 . London, Ministry of Health, 1937. 58 pp. (Cmd. 5621.)

An account of the present situation under the rent-restriction laws, with recom­
mendations for changes in the laws, and information on housing and housing
shortage.
A f e w f a c t s a b o u t th e h o u s in g p r o b le m . By Catherine Bauer. (In Labor Informa­
tion Bulletin, U. S. Bureau of Labor Statistics, Washington, January 1938,
pp. 3-7; charts, illus.)
N e g r o h o u s in g i n to w n s a n d c itie s , 1 9 2 7 —1 9 8 7 . A selected list of references, com­
piled by Agnes H. Campbell. New York, Russell Sage Foundation Library,
December 1937. 5 pp. (Bulletin No. 146.)
W i llia m s b u r g h o u s e s — a c a s e h is to r y o f h o u s in g . Washington, Federal Administra­
tion of Public Works, 1937. 31 pp., illus.
Describes the origin and development of the Williamsburg low-cost housing
project.
T h e d i a r y o f a h o u s in g m a n a g e r .
By Abraham Goldfeld. Chicago, National
Association of Housing Officials, 1938. 115 pp.
In com e
By Harold F. Clark.
New York, Harper & Bros., 1937. 408 pp.
The occupations for which estimated life earnings are given in this volume
are architecture, dentistry, professional engineering, journalism, law, library
work, medicine, the ministry, nursing, school teaching, clerical work, skilled
labor, farming, and unskilled labor. ¡Figures on length of life in the general
occupational groups are also included.
L if e e a r n in g s i n s e le c te d o c c u p a tio n s i n th e U n ite d S ta te s .

I n d u s t r i a l A c c id e n ts a n d W o r k m e n 's C o m p e n s a tio n
Habana, Secretaría de Hacienda, Dirección General
de Estadística, 1937. 4 pp.; mimeographed.
Data on accidents to workers in Cuba during 1936, classified by provinces,
months, kind of work, and degree of severity.
O ly c k s f a ll i a rb e te d r 1 9 3 4 .
Stockholm, Riksforsákringsanstalten, 1937. 51 pp.
Analysis of industrial accidents in Sweden, with tabulations showing, by
industry, the number and cost of injuries, by sex and age; severity and duration,
by age and cause; location of injury; and time loss, by cause. The total number
of industrial injuries in 1934, as reported to the Royal Insurance Institution,
was 138,486.
Printed in Swedish, with table of contents, résumé, list of industries, and list
of accident causes in French.
R i k s f o r s á k r in g s a n s ta lte n , d r 1 9 3 6 .
Stockholm, Riksforsákringsanstalten, 1937.
32 pp.
Report on state insurance, including accident insurance, in Sweden in 1936.
Printed in Swedish with table of contents and résumé in French.
A c c id e n te s d e l tr a b a jo , 1 9 3 6 .

T w e n ty - f ir s t a n n u a l r e p o r t o f [Q u e e n s la n d ] S ta te
fo r y ea r en ded J u n e 8 0, 1987.
Brisbane, 1937.

G overn m en t

In su ra n c e

O ffice,

41 pp.
Covers operations under the workmen’s compensation laws as well as general
forms of insurance.


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

812

Monthly Labor Review—March 1938

W o r k m e n ’s c o m p e n s a tio n f o r s i l i c o s i s in U n io n o f S o u th A f r i c a , G r e a t B r i t a i n , a n d
G erm an y.
Geneva, International Labor Office (American branch, 734

Jackson Place, Washington, D. C.), 1937.
Series F, No. 16.)

147 pp.

(Studies and Reports,

I n d u s tr ia l R e la tio n s
C a n a d i a n - A m e r ic a n r e la tio n s .
Toronto, Ryerson Press (for Carnegie
Endowment for International Peace), 1937. xxxviii, 212 pp.
The first part of the book, by Norman J. Ware, is devoted to the history of
labor interaction, and the second part, by H. A. Logan, to labor costs and labor
standards.
L abor in

T h ir d a n n u a l r e p o r t o f N a t i o n a l M e d i a ti o n B o a r d , in c lu d in g r e p o r t o f N a t i o n a l
R a i l r o a d A d j u s t m e n t B o a r d , f o r f is c a l y e a r ended, J u n e 3 0 , 1 9 3 7 . Washington,

1937. 34 pp., paster.
Reviewed in this issue.
F i r s t a n n u a l r e p o r t o f P e n n s y l v a n i a L a b o r R e la tio n s B o a r d , f o r c a le n d a r y e a r 1 9 3 7 .

Harrisburg, 1938.

33 pp.

By J. R. Steelman. (In Labor Informa­
tion Bulletin, U. S. Bureau of Labor Statistics, Washington, January 1938,
pp. 1, 2.)
T h e c o n te n ts o f c o lle c tiv e a g r e e m e n ts — th e w is d o m o f h in d s ig h t.
By Sumner H.
Slichter. (In Society for Advancement of Management Journal, New
York, January 1938, pp. 13-21.)
H o w to o p e r a te u n d e r a c o lle c tiv e a g r e e m e n t.
By Morris Greenberg. (In Society
for Advancement of Management Journal, New York, January 1938,
pp. 7-12.)
I r o n a n d S te e l I n d u s t r y
T h e jo b o f c o n c ilia tio n i n la b o r d is p u te s .

By Maxwell S. Stewart. New York, Public
Affairs Committee, Inc., 1937. 32 pp., charts. (Public Affairs Pamphlet
No. 15.)
A pamphlet prepared on the basis of the two-volume study by Carroll R.
Daugherty, Melvin G. de Chazeau, and Samuel S. Stratton, entitled “The
Economics of the Iron and Steel Industry.”

S te e l— p r o b le m s o f a g r e a t i n d u s t r y .

L a b o r L e g is la tio n
Wash­
ington, U. S. Bureau of Labor Statistics, 1937. 239 pp. (Bulletin No. 630.)
A r b e its v e r m ittlu n g u n d a r b e its e in s a tz .
By Kurt Göttel. München and Berlin,
C. H. Beck’sche Verlagsbuchhandlung, 1937. 179 pp.
Collection of laws and regulations pertaining to conditions of employment and
employment service in Germany through 1936, including prescribed forms of
registration cards.
G e s e tz z u r Ordnung d e r n a tio n a le n a r b e it.
With comments by Alfred Hueck and
others. München and Berlin, C. H. Beck’sche Verlagsbuchhandlung, 1937.
730 pp.
This volume contains the national labor law of Germany with regulations issued
for its enforcement, and interpretative comments by various German authors.
T h e le g a l p r o te c tio n o f th e w o r k e r ’s j o b .
By James P. Rowland. Philadelphia,
1937. 168 pp. (Privately published.)
Discusses policies and practices operating to interfere with job tenure and
measures for their regulation and control. These measures include collective
agreements and Federal and State laws designed to protect the worker’s right to
his job. The author reviews two types of relevant court decisions—in cases in
which expulsion from labor unions jeopardized the right to work, and in those
involving the constitutionality of Federal and State legislation. A summary of
foreign legislation on the subject of job tenure is given in an appendix, and a
comprehensive bibliography is included.
L a w s r e la tin g to e m p lo y m e n t a g e n c ie s i n U n ite d S ta te s , a s o f J u l y 1 , 1 9 3 7 .


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

Recent Publications of Labor Interest

813

L a b o r O r g a n iz a tio n
C le r k s .
By Harry Henig. New York, Columbia
University Press, 1937. 300 pp., charts.
Discusses the historical development, collective-bargaining machinery and
methods, wage movements, jurisdiction, government, membership, and social and
industrial program of the largest union of “white-collar” workers in the United
States. Descriptions of the jobs included in the jurisdiction of the brotherhood
are given in an appendix. A selected bibliography is included.
E m p lo y e r in te r f e r e n c e w ith la w f u l u n io n a c t iv ity .
(In Columbia Law Review,
New York, May 1937, pp. 816-841.)
The forms of employer interference discussed are discrimination against employ­
ees for union activity, individual contracts, company unions, strikebreaking, and
espionage. The degree of effectiveness of legislative attempts to regulate these
activities is analyzed, with particular reference to relevant judicial decisions and
interpretations.
R e g u la tio n o f la b o r u n io n s .
By Walter Gordon Merritt. New York, League for
Industrial Rights, [1937]. 49 pp.
Argument in support of a bill introduced into the New York Legislature in
March 1937 to place strikes and lockouts, and labor unions and their finances and
contributions, under State regulation and supervision as outlined in the bill.
The text of the bill is given in an appendix.
O r g a n iz a c io n e s p a tr o n a le s y o b r e r a s [C u b a ], 1 9 3 7 .
Habana, Secretaría de Haci­
enda, Dirección General de Estadística, 1937. 5 pp.; mimeographed.
The number of legally registered employer organizations and the number and
membership of workers’* organizations in Cuba, in the spring of 1937, are shown
for the various Provinces. The workers’ organizations are also classified by
occupation and by industry group.
U n io n m e m b e r s h ip i n G r e a t B r i t a i n a n d th e U n ite d S ta te s .
By Leo Wolman.
New York, National Bureau of Economic Research, Inc., 1937. 16 pp.,
charts. (Bulletin 68.)
A comparative study showing actual union membership and rate of growth
in the two countries from 1897 to 1935; relative strength of organized labor on
the basis of numbers gainfully occupied, as shown in the last two censuses, by
totals and by selected industries; and comparative strength of organization in
the five largest industrial groups in 1935.
T h e B r o th e r h o o d o f R a i l w a y

L a n d U t i liz a tio n
u t i l i z a t i o n — a b ib lio g r a p h y (s u p p l e m e n t , 1 9 3 7 ) .
Compiled by Dorothy
Campbell Culver. Berkeley, University of California, Bureau of Public
Administration, November 13, 1937. 139 pp.
Supplement to a bibliography of the same title issued in 1935 by the Bureau
of Public Administration.
Land

M e n ’s C lo th in g I n d u s t r y
T h e e c o n o m ic a s p e c ts o f p r o d u c tio n o f m e n ’s c lo th in g ( w ith p a r t i c u l a r re fe r e n c e to
th e i n d u s t r y i n C h ic a g o ).
By Robert James Myers. Chicago, University of

Chicago Libraries, 1937.

89 pp., charts; bibliography.
M ig r a tio n

By Charles S. Hoff­
man. Washington, U. S. Bureau of Labor Statistics, 1938. 9 pp. (Serial
No. R. 688, reprint from January 1938 Monthly Labor Review.)
M ig r a tio n p r o b le m s .
(In International Labor Review, Geneva, December 1937,
' pp. 721-741.)
M in im u m W age

D r o u g h t a n d d e p r e s s io n m ig r a tio n in to O r e g o n , 1 9 3 0 to 1 9 3 6 .

By Louise
Stitt. (In Labor Information Bulletin, U. S. Bureau of Labor Statistics,
Washington, December 1937, pp. 8, 9.)

S e ttin g m i n i m u m w a g e s f o r r e ta il e m p lo y e e s i n D is tr ic t o f C o lu m b ia .


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

814

Monthly Labor Review—March 1938
M in in g I n d u s tr y

o f a n th r a c ite .
Washington, U. S. Bureau of Labor Statistics,
1938. 4 pp. (Serial No. R. 674, reprint from December 1937 Monthly
Labor Review.)
A n n u a l r e p o r t o f C h ie f I n s p e c t o r o f M i n e s i n I n d i a , f o r 1 9 3 6 .
Delhi, 1937. 272
pp., charts.
Gives data on number of persons employed in and about the mines, earnings,
hours of labor, production, accidents, safety regulations, health, and sanitation.
B o o tle g m i n i n g

O ld e r W o r k e r in I n d u s t r y
Washington, U. S. Bureau of Labor
(Serial No. R. 687, reprint from January 1938

Y o u n g a n d o ld a t th e e m p lo y m e n t office.

Statistics, 1938. 13 pp.
Monthly Labor Review.)

P erson n el M an agem en t
New York, National Industrial Confer­
(Studies in Personnel Policy, No. 5.)
P e r s o n n e l p o lic ie s a f fe c tin g s a le s m e n . New York, National Industrial Conference
Board, Inc., 1938. 19 pp. (Studies in Personnel Policy, No. 4.)
C u r ta ilm e n t, la y o f f p o lic y , a n d s e n i o r i t y .

ence Board, Inc., 1938.

11 pp.

P la n n in g
By Sir Ivan Gwilym Gibbon. London,
Geo. Allen & Unwin, Ltd., 1937. 200 pp. (Town and County Hall Series
of Books on Local Government, No. 2.)
Stresses the importance of systematic planning for national, regional, and local
development.
S t a t i s t i c a l a i d s f o r c o m m u n ity p l a n n i n g .
New York, Community Chests and
Councils, Inc., 1937. 29 pp., charts. (Bulletin No. 90.)
One of a series of special bulletins on community planning. The four sections
of this bulletin deal respectively with health and care of the sick; recreation and
group work; child care; and family case work and relief.
P r o b le m s o f to w n a n d c o u n tr y p l a n n in g .

P o p u la tio n
T h e p o p u la tio n o f H a m ilto n C o u n ty , O h io , i n 1 9 3 5 : P a r t I , A s u m m a r y a n d in t e r ­
p r e ta tio n o f th e r e g io n a l c e n s u s o f H a m ilto n C o u n ty , O h io .
By Warren S.
Thompson and P. K. Whelpton. P a r t I I , S e le c te d ta b le s o f th e r e g io n a l c e n s u s
o f H a m ilto n C o u n ty , O h io .
Cincinnati, Cincinnati Employment Center, 1937.

Various paging, maps, charts. (Studies in Economic Security, I and II.)
The statistics presented include figures on growth of Cincinnati’s population;
racial composition and percent of foreign born; sex, age, marital condition, indus­
trial distribution, and employment status of the residents; and assimilation of
migrants into the community’s life.
The material obtained in this survey furnished in large part the fundamental
data from which plans have developed for the promotion of economic security in
the locality covered.
P r is o n L a b o r
Washington, U. S. Bureau of
(Serial No. R. 679, reprint from December

S ta te la w s r e g u la tin g s a le o f p r is o n - m a d e g o o d s.

Labor Statistics, 1937. 3 pp.
1937 Monthly Labor Review.)


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

Recent Publications of Labor Interest

815

R e c r e a tio n
C h ic a g o r e c r e a tio n s u r v e y , 1 9 3 7 : V o lu m e I , P u b l i c r e c r e a tio n .
Chicago,
Chicago Recreation Commission, 1937. 268 pp., maps, charts.
The survey was a cooperative project of the Chicago Recreation Commission,
Northwestern University, the Works Progress Administration, and the National
Youth Administration. This first volume of the report covers planning and
historical aspects, administration, facilities, and programs of public recreation.
The

C i t i z e n le a d e r s h ip , l a y a n d e x p e r t, a n d th e p r o b le m s o f le is u r e : T h ir d a n n u a l r e p o r t
o f C h ic a g o R e c r e a tio n C o m m is s io n .
Chicago, 1937. 15 pp., illus.

Describes some of the recreation activities of the city, its master plan based on
recreation surveys, and administration of the city-wide recreation project.
P la y

a n d r e c r e a tio n f o r c h ild r e n a n d a d u lts — a n e d u c a tio n a l p r o g r a m f o r m o re
s a tis f a c to r y liv in g .
By Caswell M. Miles. Albany, University of State of

New York, 1937. 116 pp., illus. (Physical Education and Recreation
Book VI.)
Intended as a guide to educational authorities in combining play and recreation
activities with educational programs.
R e l i e f M e a s u r e s a n d S ta tis tic s
By Ellery F. Reed. Chicago, Ameri­
can Public Welfare Association, 1937. 10 pp., chart.
The experiment reported upon was conducted from February to July 1936 by
the Hamilton County Department of Welfare, Cincinnati, in one of its districts,
in an effort to decrease the time that families needed to remain on the relief rolls.
A n e x p e r im e n t i n r e d u c in g th e c o s t o f r e lie f .

S o c ia l S ecu rityBy Arthur J. Altmeyer. (In Labor
Information Bulletin, U. S. Bureau of Labor Statistics, Washington, Decem­
ber 1937, pp. 1-4; map.)
T h e a d m i n i s t r a t i o n o f F e d e r a l g r a n ts to S ta te s . By V. O. Key, Jr. Chicago, Public
Administration Service, 1937. xviii, 388 pp.
Descriptive analysis of experience under various Federal grants-in-aid to
States for the promotion of national programs. The programs discussed include
vocational education and rehabilitation, employment services, and the new
social-security systems. Administrative techniques and procedures, including
inspection, audit, and machinery for allocating and matching funds, are presented,
and cooperating administrative structures within the Federal and State Govern­
ments are described. The study is “one of a series of studies of the administrative
problems of the emerging social-security program in this country, which have
been carried on under the auspices of the Committee on Public Administration of
the Social Science Research Council.”
S o c ia l s e c u r ity f o r w o r k e r s b e c o m e s a r e a l it y .

S o c i a l in s u r a n c e i n E u r o p e a n d s o c ia l s e c u r ity i n th e U n ite d S ta te s — a c o m p a r a tiv e
a n a ly s is .
By Karl Pribram. (In International Labor Review, Geneva,

December 1937, pp. 742-771.)
By Hans Engel and J. Eckert. Berlin,
Beamtenpresse Gmbh., 1937. Various paging.
Deals with the status of social-insurance systems in Germany during the
present regime.
P u b l i c s o c ia l s e r v ic e s (to ta l e x p e n d itu r e u n d e r c e r ta in a c ts o f P a r l i a m e n t ) . London,
Treasury, 1937. 20 pp. (Cmd. 5609.)
Data include expenditures during 1935 or the latest available year, and estimated
expenditures for 1936, on unemployment insurance, national health insurance,
widows’, orphans’, and old-age pensions, education, housing, and direct relief, in
England and Wales, and in Scotland.
B e r e tn in g f r a I n v a lid e f o r s ik r in g s r e tte n f o r a a r e t 1 9 8 6 .
Copenhagen, 1937. 130
pp., pasters.
Report on operation of the Danish invalidity-pension system during 1936.
An English summary and English translations of the text material in tables are
furnished.
D i e s o z ia lv e r s ic h e r u n g i m D r itte n R e ic h .


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

Monthly Labor Review—March 1938

816

T e c h n o lo g ic a l C h a n g es
By
Boris Stern. Washington, U. S. Bureau of Labor Statistics, 1938. 36 pp.,
illus. (Serial No. R. 660, reprint from January 1938 Monthly Labor Review.)
T h e u s e o f office m a c h in e r y a n d i t s in flu e n c e o n c o n d itio n s o f w o r k f o r s ta ff.
(In
International Labour Review, Geneva, October 1937, pp. 486-516; charts.)
Technological changes such as standardization accompanying mechanization
are described and there is some analysis of the physiological, psychological, and
social effects of the use of office machinery. There is also a classification of office
machines. It is estimated that office employees have been less affected by
depression than manual workers, but that displacements and difficulties of read­
justment have been particularly serious in the case of skilled employees and those
in the prime of life.
E ffe c ts o f m e c h a n ic a l c h a n g e s i n w o o le n a n d w o r s te d i n d u s tr ie s , 1 9 1 0 to 1 9 3 6 .

U n e m p lo y m e n t I n s u r a n c e a n d R e l i e f
R e p o r t o f U n e m p lo y m e n t I n s u r a n c e S t a t u to r y C o m m itte e , G r e a t B r i t a i n
* * * on
th e d r a f t u n e m p lo y m e n t in s u r a n c e ( in s u r a b le e m p lo y m e n ts ) r e g u la tio n s , 1 9 3 7 .

London, 1937.

14 pp.

S u m m a r y o f U n e m p lo y m e n t I n s u r a n c e A c ts , G r e a t B r i t a i n , 1 9 3 5 a n d 1 9 3 6 .

don, Ministry of Labor, 1937.

Lon­

32 pp.

S e v e n th a n n u a l r e p o r t o f U n d e r S e c r e ta r y , D e p a r tm e n t o f L a b o r a n d I n d u s t r y ,
Q u e e n s la n d , % pon o p e r a tio n s a n d p r o c e e d in g s u n d e r “ T h e I n c o m e ( U n e m p lo y ­
m e n t R e lie f ) T a x A c ts , 1 9 3 0 to 1 9 3 5 ,” to g e th e r w ith f i n a n c i a l s ta te m e n ts f o r y e a r
e n d e d J u n e 3 0 , 1 9 3 7 . Brisbane, 1937. 83 pp.

W ages a n d H o u rs
Washington, U. S. Bureau of
' Labor Statistics, 1938. 11 pp. (Serial No. R. 670, reprint from February
1938 Monthly Labor Review.)
C o lle g e s a la r ie s , 1 9 3 6 .
Washington, U. S. Office of Education, 1937. 33 pp.
(Bulletin, 1937, No. 9.)
A summary table from this pamphlet is reproduced in this issue of the Monthly
Labor Review.
E n tr a n c e r a te s o f c o m m o n la b o r e r s i n 2 0 in d u s t r i e s , J u l y 1 9 3 7 .
By Jacob Perlman
and Edward K. Frazier. Washington, U. S. Bureau of Labor Statistics, 1937.
20 pp. (Serial No. R. 682, reprint from December 1937 Monthly Labor
Review.)
R e g io n a l d iffe r e n c e s i n c o tto n -te x tile w a g e s , 1 9 2 8 - 1 9 3 7 .
By N. A. Tolies. Wash­
ington, U. S. Bureau of Labor Statistics, 1938. 12 pp. (Serial No. R. 689,
reprint from January 1938 Monthly Labor Review.)
W a g e s a n d h o u rs i n u n io n b a k e r ie s , M a y 1 5 , 1 9 3 7 .

T h e w e a v e r 's w a g e : E a r n in g s a n d c o lle c tiv e b a r g a in in g i n L a n c a s h ir e c o tto n w e a v in g
in d u s tr y .
By E. M. Gray. Manchester, England, Manchester University

Press, 1937. ' 69 pp.
By J. Perlman, P. L. Jones,
and O. R. Witmer. Washington, U. S. Bureau of Labor Statistics, 1938.
26 pp. (Serial No. R. 681, reprint from December 1937 Monthly Labor
Review.)
U n io n s c a le s o f iv a g e s a n d h o u r s i n p r i n t i n g tr a d e s , M a y 1 5 , 1 9 3 7 .
By Joseph J.
Senturia and Frank S. McElroy. Washington, U. S. Bureau of Labor
Statistics, 1938. 18 pp. (Serial No. R. 683, reprint from December 1937
Monthly Labor Review.)
W a g e s a n d h o u rs o f u n io n s tr e e t- r a ilw a y e m p lo y e e s , 1 9 3 7 .
Washington, U. S.
Bureau of Labor Statistics, 1938. 8 pp. (Serial No. R. 693, reprint from
January 1938 Monthly Labor Review.)
M o n t h l y s a la r ie s p a i d i n 1 4 3 C a l if o r n ia c itie s a s o f J u n e 1 , 1 9 3 7 .
San Francisco,
League of California Municipalities, 1937. 26 pp.; mimeographed. (Re­
port No. 12.)
Statistics on salaries for 6 cities with over 50,000 population are published in
this issue of the Monthly Labor Review.

E a r n in g s a n d h o u r s i n g r a n ite i n d u s t r y , A u g u s t 1 9 3 7 .


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

817

Recall Publications of Labor fnlcrosl

By A. L. Bowley. Cambridge,
University Press, 1937. 151 pp.; bibliography.
Summarizes a large number of studies of wages and income made by the author
over a period of 40 years. The studies indicate that average money wages when
adjusted to cost of living increased about 40 percent between 1880 and 1913.
Wages were about 40 percent of the total income in 1880 and about 38.5 percent
of the total income in 1913. Average wages, when adjusted to the cost of living,
rose after the World War, but the author states that “it does not seem practicable
to give any definite measurement of the change of the average standard of living
in the circumstances of recent years.” There is much information regarding
statistical methods and sources, and a bibliography, consisting mainly of the
author’s own writings.
T i p p i n g a s a f a c to r i n iv a g e s .
By Rae L. Needleman. Washington, U. S. Bureau
of Labor Statistics, 1937. 20 pp. (Serial No. R. 673, reprint from December
1937 Monthly Labor Review.)
W a g e m e th o d s i n r e ta ilin g .
By Otho J. Hicks. (In Personnel Journal, New
York, December 1937, pp. 206-211.)
According to this article, the mass of workers at the present time are more
interested in job security and regular income than in plans involving a fixed mini­
mum with an opportunity to earn additional pay under incentive systems, espe­
cially the quota-bonus system.
M u l t i p l e - s h i f t o p e r a tio n .
New York, National Industrial Conference Board,
Inc., 1937. 4 pp. (Studies in Personnel Policy, No. 3.)
Reviewed in this issue.
W a g e s a n d in c o m e i n U n ite d K i n g d o m s in c e i 8 6 0 .

C h e m ic a l i n d u s t r y : M e m o r a n d u m o n p r a c t ic a b il i t y a n d d e s i r a b i l i t y
n a tio n a l r e d u c tio n o f w o r k in g h o u r s i n c h e m ic a l in d u s t r i e s .

of

an

in te r ­

Amsterdam,
International Federation of General Factory Workers, 1936. 21 pp.
International reduction of hours in the chemical industry is viewed as practicable
and desirable because of the prevalence of great international cartels or trusts
in the industry, the influence of these organizations on prices and industrial
policies, the comparatively small share of wages in cost of production, the large
proportion of unskilled workers, and the existence of conditions of work likely to
involve risk or impairment of health.
Y o u th P r o b le m s
By William R. George. New York, D. Appleton-Century Co.,
1937. xxv, 192 pp.
An appeal and a plan for the training of youth in political, economic, and social
responsibility. The author, founder of The George Junior Republic at Freeville,
N. Y., reports on this experiment and also on the junior-municipality plans which
have been promoted.
T h e p r o s p e c t f o r y o u th .
Edited by James H. S. Bossard and W. Wallace Weaver.
(In The Annals, American Academy of Political and Social Science, Phila­
delphia, November 1937, Vol. 194, pp. 1-216; bibliography.)
The articles in this issue of The Annals have been brought together by the
Academy of Political and Social Science for the purpose of focusing attention upon
youth problems and facilitating their intelligent consideration. In many of the
papers reference is made to labor aspects of youth problems, such as restricted
work opportunities, severity of unemployment among young people, activities of
junior placement services, and vocational guidance. The Civilian Conservation
Corps program and European labor services are also reviewed.
T h e a d u lt m in o r .

G e n e ra l R e p o r ts
T h ir d a n n u a l r e p o r t o f C e n tr a l S t a t i s t i c a l B o a r d , J u l y 1, 1 9 3 6 , to J u n e 3 0 , 1 9 3 7 .

Washington, 1937. 20 pp.
Reviewed in this issue.
S e c o n d a n n u a l r e p o r t o f D e p a r tm e n t o f L a b o r o f A l a b a m a , [fis c a l y e a r e n d in g S e p ­
te m b e r 3 0 , 1 9 3 7 ].
Montgomery, 1937. 87 pp.

Reviews the work of the department and presents statistics of strikes and lock­
outs, industrial accidents, employment service, child labor, and number of gain­
fully occupied persons (1929-36) by county.

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

818

Monthly Labor Review—March 1938

By C. L. Jarrett. (In Labor
Information Bulletin, U. S. Bureau of Labor Statistics, Washington, January
1938, pp. 10, 11.)
R e p o r t o n p h a s e s o f e m p lo y m e n t c o n d itio n s i n C a n a d ia n i n d u s t r y .
Ottawa, National
Employment Commission, 1937. 67 pp. (In English and French.)
A compilation of statistics, from 7,725 firms, dealing with employment, hours
of work per week, seasonality in employment, hiring practices, employee housing,
pension plans, sick leave and holidays with pay, and various plans for benefit of
employees. Data on maximum hiring ages, from the report, are published in
this issue of the Monthly Labor Review.
A n u a r io g e n e r a l d e e s ta d ís tic a , 1 9 3 6 .
Bogotá, Contraloria General, Dirección
Nacional de Estadística, 1937. 600 pp., maps.
Data for Colombia are given on number and wages of railway workers; persons
employed in industry, by nationality and sex; public lands allotted to colonists;
market prices of various articles of food, by city; wages and cost of food of agri­
cultural workers, by locality; wages of workers in various occupations in the
principal industrial cities; industrial accidents; and consumers’ cooperatives.
S u o m e n tila s to llin e n v u o s i k i r j a , 1 9 3 7 .
Helsinki, Tilastollisessa Páátoimistossa,
1937. 394 pp.
General statistical annual issued by the Central Statistical Bureau of Finland,
including statistics on industrial accidents, accident insurance, public assistance,
strikes and lockouts, work of employment offices, membership in labor organiza­
tions, wages of agricultural workers and workers on the state railways, prices,
and cost of living. The data on prices and cost of living and on work of employ­
ment offices are brought down to early 1937; on the other topics mentioned the
figures are for varying periods up to 1936.
Printed in Finnish and Swedish with French translations of table of contents
and most of the table heads.
A c ti v i t i e s o f W e s t V i r g i n ia D e p a r tm e n t o f L a b o r .

J a h r e s b e r ic h te d e r g e w e r b e a u f s ic h ts b e a m te n u n d b e r g b e h o rd e n f ü r d ie ja h r e 1 9 3 5 u n d
1936.
Berlin, Reichs- und Preussischen Arbeitsministerium, 1937. Various

paging.
Report on factory inspection in Germany during 1935 and 1936. Information
is given on protective labor legislation, accident and disease prevention, sanita­
tion, rest periods, overtime, night and holiday work, home work, apprenticeship,
wages, unemployment, relief work, housing, labor courts, etc.
A s u r v e y o f th e s o c ia l s tr u c tu r e o f E n g la n d a n d W a le s a s ill u s t r a t e d b y s ta tis tic s .

By A. M. Carr-Saunders and D. Caradog Jones. Oxford, Clarendon Press,
1937. xviii, 235 pp. 2d ed.
This work was first published in 1927 largely as a summary and interpretation
of the census of 1921. The present edition, which makes use of the census of 1931
and various other sources, furnishes a large vaiiety of information. Among the
subjects included are housing, occupations, trade unions and other workers’
associations, income, state provision against misfortune, and extent of poverty
and of relief provided.
C e n s u s o f i n d u s t r i a l p r o d u c tio n [ I r is h F re e S ta te ].
Dublin, Department of Industry
and Commerce, 1937. 85 pp.
Data include number of salaried workers and wage earners, with total salaries
and wages, in selected industries, in each year from 1932 to 1935, inclusive.
S ta tis tis k - f ik o n o m is k o v e r s ik t o ver d r e t 1 9 3 7 .
Oslo, Statistiske Centralbyrá, 1938.
86 pp., charts.
Reviews economic conditions in Norway in 1937, including prices and unem­
ployment. A French translation of the table of contents is supplied.
O ffic ia l y e a r b o o k o f U n io n o f S o u th A f r i c a a n d o f B a s u to la n d , B e c h u a n a la n d P r o ­
te c to r a te , a n d S w a z i l a n d , 1 9 3 7 .
Pretoria, Office of Census and Statistics,

1937. 1326 pp., maps.
Among the topics covered are wages, employment, work of employment offices,
unemployment insurance and relief, trade-union membership, apprenticeship,
prices, housing, cooperative societies, and miners’ phthisis and compensation
therefor. The data are for 1936 and earlier years. There are also ¡synopses of
parliamentary legislation from 1933 to 1936, including labor and social legislation.


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

Recent Publications of Labor Interest

819

By Dale Yoder. New York, Prentice-Hall, Inc.,
1938. xix, 644 pp.
The subjects treated include sources of labor supply, education and training,
hours of work, wage-payment plans, wage policies, industrial health, employment
stabilization, causes of unstable employment, employee representation, and colective bargaining.
P e r s o n n e l a n d la b o r r e la tio n s .


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

U. S . G OVERNM ENT P R IN T IN G O F F IC E : 1938

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