Detailed operating expense percentages of Wholesale Dry Goods Institute-Continued Houses with volume of sales between $1,000,000 and $2,000,000 (average for group, 13.662 percent) No. 32 No. 33 No. 34 No. 35 No. 36 No. 37 No. 38 No. 39 No. 40 No. 41 No. 42 No. 43 No.44 No. 45 No. 46 Officers' salaries. Office salaries. 1.130 .880 1.680 0.410 0.547 0. 761 0.640 2.090 1.487 0.720 Traveling expense, officers. .866 1.330 0.670 959 .722 0.830 0.460 2. 150 .550 .860 1.676 1. 130 1. 100 Office supplies and stationery. .154 .012 1.290 1.050 .055 .800 1.405 .851 .050 .014 .050 020 245 Postage. .140 .020 069 135 010 .100 .090 224 .140 160 310 125 Telephone and telegraph. 180 197 .229 .050 100 200 . 200 .210 . 147 223 Professional services (legal and auditing). .060 .074 .210 180 140 153 . 152 .042 . 140 090 .070 Insurance: . 088 .088 .200 515 .190 150 .050 .002 .140 .063 100 .070 .100 .099 .150 . 140 .110 020 Fidelity and liability. 091 .040 .082 .010 Officers' life. Taxes, local and State. .098 .040 012 080 .062 060 .440 130 050 Depreciation, furniture and fixtures. 760 .120 .014 1.065 192 250 026 260 030 .010 570 040 034 040 072 .510 028 129 .080 301 .040 .090 250 521 060 .060 160 024 100 096 .070 .040 .043 112 .010 .030 009 Miscellaneous. .120 080 193 . 140 335 130 .020 040 .254 061 .411 .060 .020 .150 .082 . 100 .070 .100 .016 130 Total, administrative expense 1.240 2. 750 5. 059 2.800 2.461 3.821 2. 129 3.980 3.992 3.330 3.230 3.770 Buying expense: 4. 730 2. 160 4. 250 4.021 Buyers' salaries. Traveling expense, buyers. .520 .650 1. 160 841 .205 1.209 1.080 New York buying office expense. .080 1.236 170 .060 170 .258 1. 190 1.460 .070 003 .090 139 .044 .050 .300 Total, buying expense. .220 .670 .823 1.310 1. 150 .463 1. 253 1. 130 1.508 .490 . 180 Selling expense: 1.540 2.070 340 .013 Detailed operating expense percentages of Wholesale Dry Goods Institute-Continued Selling expense: Salesmen's salaries. Salesmen's commissions and bonuses. (The hearing was resumed, pursuant to the recess, at 2 p. m.) Mr. KELLER. The committee will come to order. As you know, gentlemen, I was not here this morning. I understood Mr. Besse made an additional statement. I hope Mr. Besse will return in a short time because I want him to go back on the stand and I want to ask him to think over some of the things that have been discussed here. Mr. Fisher, will you please take the stand. STATEMENT OF RUSSELL T. FISHER, ON BEHALF OF NATIONAL ASSOCIATION OF COTTON MANUFACTURERS Mr. FISHER. Mr. Chairman, in order to avoid repetition I will make a short statement here simply to put our association on record with the committee. I thought it would be of considerably more interest to the committee to have an actual manufacturer here, so Mr. Fred Steele, one of our leading New England manufacturers, will follow me, if you will so permit. Mr. KELLER. If we do not finish this afternoon, and if we are compelled to go back over to the House, I am perfectly willing to come back here this evening to finish the testimony that is desired to be given by the silk and rayon interests. Mr. FISHER. The National Association of Cotton Manufacturers is an incorporated voluntary trade association that has been in continuous operation since 1854, representing through its membership practically the entire northern and eastern sections of the cottontextile industry. According to the United States Census of 1935, the latest available, this section of the industry employed 80,624 wage earners and paid $66,432,644 in wages. Preliminary census figures for March of 1937 show 7,680,680 spindles in place in this section, of which 6,346,406 were reported as active. The goods manufactured by our member mills vary radically, but can be classified under the general terms of fine goods and specialties. The products of these mills vary widely and include such diversified items as combed dress goods, shirtings, heavy work clothing materials, sheets, blankets, towels, typewriter cloths, airplane-wing fabrics, et cetera. In practically no two mills is the processing carried out in identically the same manner, the different products requiring both a different line-up of machinery and layout of the work. Extensive liquidation of plants in this section has left those mills still operating equipped in general with modern machinery, and the intense competition has naturally resulted in high efficiency of operation. The National Association of Cotton Manufacturers, in concurrence with the American Cotton Manufacturers Association and the Cotton Textile Institute, is vitally interested in any proposal that will benefit the employee, the employer, and the communities in which the industry is located. Mr. KELLER. And the Nation at large. Put that in too. Mr. FISHER. I will add "and the Nation at large." The attitude of the industry in improving conditions in the industry during the last few years has been very generally recognized. Prior to the code it had voluntarily reduced working hours, and under the code established the four principles to which it has very generally adhered, even after the legislation that inspired the Code had been declared unconstitutional. These four principles are the national work week, minimum wage, elimination of child labor and stoppage of productive machinery on a third shift. In filing a brief at the previous hearings on the Ellenbogen bill before this committee, it was suggested that the committee take judicial note of several studies and surveys conducted by various Federal bureaus and departments. Inasmuch as most of the information developed in these reports is still pertinent, we again respectfully call them to your attention, as follows: The report of Dr. Sachs of the Research and Planning Division of the National Recovery Administration. The report of the Textile Labor Relations Board's Textile Work Assignment Board. The reports of the Federal Trade Commission on the cotton textile industry. The Textile Report of the Bureau of Labor Statistics, United States Department of Labor. The report on Conditions and Problems of the Cotton Textile Industry, by the Cabinet committee appointed by the President. A more recent study, which has not yet been made public by the Department of Labor, but which would undoubtedly be available to your committee, deals specifically with productivity of both employee and machinery over a period of years. This report is also recommended for your attention. This association, after careful study and analysis of H. R. 238, has concluded that it must be recorded as irrevocably opposed to this type of regulatory legislation. We wish to have it understood, however, that the conclusions of the association should not be construed as a criticism of the authors or proponents of the bill. There are numerous reasons for opposing the enactment of this bill. Many of the regulatory provisions embodied in it are unnecessary. There are now adequate existing laws covering unfair trade and labor practices. It would appear from a study of the bill that it has not been revised. in light of the recent Supreme Court decision on the National Labors Relations Act, as well as in view of the provisions of the RobinsonPatman Act. Our chief objection is directed against the proposal to create a commission to be known as the National Textile Commission. The supreme authority vested in this commission would be so unreasonably extensive it would be provocative, in that it would dispossess the manufacturer of practically any voice or authority in the management of his own business. We are positive in our belief that the objectives set forth in this bill can be accomplished by simpler methods. To use the textile industry as a test tube to determine the value of this sort of legislation is unfair to the worker, the management and the community. Mr. KELLER. What simplification of this bill would you suggest? Mr. FISHER. If there is to be such legislation we believe it should be general and not apply to any one industry. Mr. KELLER. What would you make general? Let's get that. Do you mean hours and minimum wages? Mr. FISHER. Yes; hours and minimum wages. As Dr. Murchison pointed out, we would be glad to get rid of the child labor question |