Mr. WELCH. You represent the National Rayon Weavers Association, Inc.? Mr. DALL. Yes, sir. Mr. WELCH. Your name is C. W. Dall? Mr. DALL. Yes, sir. Mr. WELCH. And you are the president of the organization? Mr. WELCH. If you care to wait, Mr. Dall, we will be glad to hear you. Mr. SCHNEIDER. I think we ought to have a verbal statement from him, Mr. Chairman. STATEMENT OF C. WHITNEY DALL, PRESIDENT, NATIONAL RAYON WEAVERS ASSOCIATION, INC., 40 WORTH STREET, NEW YORK CITY Mr. WELCH. Now, Mr. Dall, you may proceed. Mr. DALL. As rayon fabric is probably the newest addition to the textile family, a few facts about the industry seem in order. The group represented by this association is composed mainly of those weavers of synthetic fiber yarn who formerly operated under the Cotton Textile Code. That this group of manufacturers is representative of the majority of the rayon-weaving industry is shown by the fact that they consume approximately 75 percent of the total poundage of yarn used in broad woven goods, operate three-quarters of the total number of looms running on these fabrics, and produce roughly 73 percent of the estimated 800,000,000 yards of rayon broad goods woven in the United States in 1936. Its members operate approximately 42,000 looms, actively engaged in rayon weaving at present. About 68 percent of the looms are located in New England; about 28 percent in the States of Virginia, Maryland, and North and South Carolina, with only 4 percent in New Jersey and Pennsylvania. The value of its product for the year 1936 is estimated at roughly $200,000,000. It employs approximately 35,000 to 40,000 wage earners. Owing to a constantly increasing consumer acceptance, there has been, from year to year, a steady increase in the production of rayon-woven cloth and consequently a greater consumption of rayon yarn. The record of the last 4 years of the consumption of rayon yarn by this group shows that in 1933 it consumed 97 million pounds out of a total of 141 million used in broad woven goods; in 1934, 99 million pounds out of a similar total of 131 million; in 1935, 131 million pounds out of a total of 179 million; in 1936, 162 million pounds out of a total of 217 million. In short, it is a growing, expanding industry. The product for the most part is sold in the greige, or as the cloth comes from the loom, to a converter who has it bleached, dyed, or printed to his own specifications, selling, in turn to the cutter of garments, or manufacturer of other finished articles such as lamp shades, curtains, and so forth, and in part to the retail store for sale over the counter as piece goods. The cloth produced falls roughly into two classifications, those of staple goods and dress goods. Demand for the latter is highly seasonal, subject to rapid changes in style and fashion with all that that implies; the demand for the staples is somewhat seasonal in character but much steadier than that for dress goods. This group in January 1936, went on record as opposed to the provisions of H. R. 9072 and finds the subcommittee print of H. R. 238 far from acceptable. In the interest of brevity, I shall not attempt to deal with each section of the bill, but confine my comments to a few of its more important features. First, as to the finding of facts, as enumerated in section 1, subsections III, IV, V, and VI. These do not apply to the rayon weaving industry, particularly that part of subsection IV relating to the migration of plants from one section to another. As pointed out above, the bulk of this industry is located in New England. There has been expansion in rayon weaving in the South as well as in the North but no migration from North to South. Second. Since these facts are not applicable, we are opposed to the establishment of a Commission as provided in section 3, with the immense powers given it, in effect to legislate, judge, and administer. Third. With all respect, we feel that the main fault of this bill is that it is primarily a labor bill but attempts to combine labor provisions with the others governing competitive practices. We do not ask for any legislation nor do we feel that this industry needs it, but if in the wisdom of the Congress it is necessary, there should be such, we suggest the enactment of a bill with simple, definite provisions with respect to minimum wages and maximum hours of labor, provided it will stand the test of constitutionality and therefore be enforceable. We appreciate the motive of the committee in desiring to help. industry, and are grateful for the invitation to be present and submit our comments. Mr. SCHNEIDER. Mr. Dall? Mr. DALL. Yes, sir. Mr. SCHNEIDER. Your industry makes yarn principally, does it not? Do you weave any cloth? Mr. DALL. No; it does make the yarn. It buys the yarn from the yarn producers. That is a separate industry. Mr. SCHNEIDER. You buy principally wool and rayon yarn? Mr. DALL. No, sir; no wool. We buy rayon yarn, synthetic fiber yarn, and weave the cloth. Of course, there are mixtures or rayon with other fibers, but the bulk of the production bought is rayon yarn itself. Mr. SCHNEIDER. Are you making wool into rayon yarn yourself? Mr. DALL. We do not use a great deal of wool, but there may be some mixtures with wool in them. Mr. SCHNEIDER. It is mostly rayon? Mr. DALL. It is virtually all rayon. The rayon weaver is a man who runs rayon warps, that is, the warp of the cloth, the bulk of it is practically rayon. Mr. SCHNEIDER. Where do you buy that rayon yarn? Mr. DALL. From the yarn producers. Mr. SCHNEIDER. Where are they principally located? Mr. DALL. The Celanese Corporation is located in Maryland, the Viscose Co. has a plant in Lewiston, Pa., and also one in Parkersburg, W. Va. The Tubize Co. is in Virginia. The American Inc. plant is at Asheville, and the Industrial Rayon plant is in Cleveland. Mr. SCHNEIDER. Has there been much increase in the price of that yarn over the past 5 years? Mr. DALL. No. Mr. SCHNEIDER. Is it lower in price than it was? Mr. DALL. May I get a schedule and give you that information? Mr. SCHNEIDER. Is the price of the rayon yarn lower now? Mr. DALL. I should say in 1932 it was probably at its lowest ebb, or lowest price. Mr. SCHNEIDER. That rayon yarn is made wholly of wood, is it not? Mr. DALL. Sometimes they use a mixture of cotton linters in it. Mr. SCHNEIDER. That is what is called the synthetic yarn? Mr. DALL. Yes, sir. Wood pulp is the main ingredient, and some processes use some cotton linters. Mr. SCHNEIDER. Do you buy it that way? Does it have cotton in it when you buy it? Mr. DALL. We buy the yarn ready to weave. Mr. SCHNEIDER. The rayon you buy is pure pulp rayon yarn? Mr. WELCH. Where is the rayon yarn manufactured? Mr. DALL. I have just explained there are a number of plants that manufacture it, Mr. Welch. The largest producer of rayon is the Viscose Co. I could not tell you where all of their plants are, but mainly at Lewiston, Pa., and Parkersburg, W. Va. Mr. SCHNEIDER. Can you tell the committee whether the firm that makes the yarn also makes the rayon pulp out of which that is made? Mr. DALL. That is out of my field, but I believe they buy the pulp. That is subject to correction. I do know, however, that the pulp companies supply them with wood pulp. Mr. WELCH. Do they use any particular kind of wood in the manufacture of the pulp? Mr. DALL. I imagine they use spruce mainly. It is a little different kind of wood pulp made I think possibly of a slightly better grade than is used in the manufacture of paper. There is a difference, I know. What that difference is, I am not clear on, but I believe that is correct. Mr. WELCH. Is there anything further? Mr. SCHNEIDER. That is all. Mr. ELLENBOGEN. I want to ask one question, Mr. Dall. Mr. DALL. Mr. Ellenbogen, I have not those detailed figures here. The last survey I made of wages was for the period of January of this year, and the average wage, weighted by employees, for all employees in the mills, including part-time workers, and the cleaners, and the outside help, and the unskilled labor, and so forth, figured 46.1 cents an hour. Now, as to the minimum wage on machine operation, I am afraid I can't recall that. Mr. ELLENBOGEN. Your industry would not object to $15 a week, would it? Mr. DALL. I think the industry would be glad to see as high a minimum wage as the industry could stand, if you do not in so putting that minimum at $15 a week dislocate badly, or set out of joint the competitive situation. Mr. ELLENBOGEN. Do you believe you could go along on $18. Mr. ELLENBOGEN. Thank you. Mr. WELCH. We will recess subject to the call of the Chair. (Thereupon, at 6:25 p. m., a recess was taken subject to the call of the Chair.) STANFORD JUL BRARY DIV. HEARINGS BEFORE THE SUBCOMMITTEE OF THE COMMITTEE ON LABOR HOUSE OF REPRESENTATIVES SEVENTY-FIFTH CONGRESS FIRST SESSION ON H. R. 238 7 1937 DOCUMENT A BILL TO REHABILITATE AND STABILIZE LABOR CONDI- AND OTHER CONDITIONS OF EMPLOYMENT IN SAID INDUSTRY; TO SAFEGUARD AND AND FOR OTHER PURPOSES |