TABLE 5.-Index of average hours worked per week in textile industries, 1932–35 [January 1932=-100-U. S. Bureau of Labor Statistics] 100.0 105.4 1933. 98.4 104.5 1934.. 74.4 82.4 1935. 81.1 80.4 69.9 100.0 96.9 88.7 88.4 89.2 87.1 93.7 110.1 110.8 113.9 105.9 108.0 94.7 98.5 93.6 107.2 103. 8 96.6 98.2 81.0 77.3 80.4 79.3 78.6 78.7 80.4 Knit goods: 1932. 100.0 103.6 1933. 1934. 1935 105.8 98.6 92.7 93.6 96.7 100.3 94.0 98.1 103.7 110.5 66.4 85.0 88.0 88.7 86.9 83.0 85.6 87.8 88.5 84.8 80.8 77.1 91.9 92.7 107.0 114.2 112.3 107.7 108. 6 88.7 86.2 87.8 86.4 81.4 76.8 80.6 81.0 86.8 86.5 87.3 73.9 84.5 89.4 92.0 91.8 88.1 The tables that I have submitted here are five. One covering employment; another, pay rolls; the third, average weekly earnings; the fourth, hourly earnings; and the fifth, average hours work. I think the last two tables, 4 and 5, are presumably the most significant. The figures shown cover the three branches of the textile industry, cotton goods, woolen and worsted, silk dyeing and finishing, and knit goods. With reference to all of those branches of the textile industry, the Bureau receives monthly reports from a very large and representative sample of employers who are reporting to us the total amount of their pay roll, the total number of employees, and the total number of man-hours worked, all of those figures for a single week in each month. The figures, I think, demonstrate beyond any question of doubt the general gain which was made in the textile industry in the increase in average hourly earnings and also the increase in weekly earnings, under the N. R. A. The increase in the average hourly earnings in cotton amounted to about 60 percent, three-fifths; woolens and worsteds, there was a gain of about one-third, and in silk of about the same amount; dyeing and finishing about 25 percent, and knit goods about 50 percent. The situation in all of those industries with respect to average hourly earnings was somewhat similar in the period from August 1933 to the spring of this year. There was a general tendency for wages to rise, adjusting themselves fully to the code standards in the latter part of 1933, with a very slow rise in average hourly earnings taking place in 1934 down to the spring of 1935. Since the Schechter decision, the figures show a different trend in the various industries. In silk, the figures show a decline of 6.5 percent in average hourly earnings between May of this year and December of this year, and in that industry the gain which was made in the average hourly earnings in the period from December 1933 to the spring of 1935 was completely extinguished. It has not, of course, meant a reversal to averages as low as those which prevailed previous to the code. The hours worked per week in the silk industry have during the last quarter of this year averaged approximately 7 percent higher than the average hours worked during the last quarter of 1934. Mr. Wood. Is that the entire industry? Mr. HINRICHS. For the silk industry. Mr. WOOD. The silk industry? Mr. HINRICHS. The silk figures would include silk and rayon, such rayon as is not manufactured in cotton establishments, which are primarily cotton. Mr. WOOD. And that is the general percentage? Mr. HINRICHS. That was a general percentage for the entire industry. Mr. WOOD. And what was that percentage, 7 percent? Mr. HINRICHS. Seven percent higher hours. If I may follow that, because there is one thing that I think should be borne in mind in connection with these figures of the Bureau's; that is, I believe these are the most representative figures that are available for the industry, but the conditions that are shown in these figures are, after all, averages for all workers in all plants, and the changes which are shown are not necessarily inconsistent with statements of fairly serious departures with reference to particular types of labor or in particular establishments. Our information comes to us on a confidential basis, and therefore none of our tabulations are ever made with reference to single establishments. I have, however, in order to inform myself with reference to the situation, gone through certain of the textile industries, silk and cotton in particular, on a mill-by-mill basis, to see what the averages in those individual establishments would show. There has been, in those figures, evidence that in certain of the individual mills, in silk in particular, a change in labor standards which is very pronounced and that in others the standards have been on the whole excellently maintained. The balance between the two comes out in terms of the type of percentage change that I speak of. In the case of cotton, the situation in the early period was that which I have described, a great rise with the N. R. A., a slow continuing increase to a peak in average hourly earnings in the spring of this year-in April. Since that time, the average hourly earnings in cotton have declined slightly. Mr. WOOD. Do you mean April of last year? Mr. HINRICHS. April of 1935. My last figures are December 1935. By December 1935 the average hourly earnings in cotton had declined about 21⁄2 percent. Again analyzing the figures on that individual plant basis, the standards in cotton have been very much better maintained than in silk. The situation I should say there is hardly in any way com parable. There has, however, been some downward movement in the averages, and there is also evidence of some increase in the length of the work period in cotton. In the other branches, the movements are less decisive. In the case of wool and worsteds, there is evidence that earnings reached a peak in 1934 and then receded slightly, and during 1935, which has been on the whole an excellent year for the woolen industry, the wage level has been maintained and the hour level, while it has increased, seems to have increased primarily under the stimulus of an additional volume of employment rather than on the basis of a break-down of the code standards, so far as we know. That constitutes all of the evidence which I wanted to introduce into the record. I would be glad to answer any questions, if there are any. Mr. Wood. I think that your statement, in connection with the testimony of Miss Lenroot, was very fine. The Children's Bureau has reported that there has been an increase of 11,000 children employed in industry since the voiding of the N. R. A. in 7 months. In 1934, prior to the voiding of the N. R. A., there was a 7,000 increase-I do not know whether that was an increase or whether that was the number of employees Mr. HINRICHS. I think that was the total number of certificates issued. Mr. WOOD. Yes; that was it. So in 1934 there were approximately 580 certificates per month issued for the employment of children between 14 and 16 for the 12-month period; and since the N. R. A. was declared unconstitutional, there were approximately 1,500 certificates issued per month for the 7 months since the voiding of the N. R. A., showing an approximate 300 percent increase in the issuance of certificates. That, coupled with your testimony, reveals that there has been a 7 percent increase in the hourly day's work and an approximate 2%1⁄2 percent decrease in wages. Do you not think that that is a rather alarming drift back to not only the vicious system of child labor but other conditions that obtained in 1933; a very rapid drift back to the old system, the old condition? Mr. HINRICHS. I think that the movement in average hourly earnings and in hours is an alarming one. Mr. WOOD. I think it is, too. Mr. HINRICHS. I am not supposed to be engaged in the business of forecasting, and there are factors in connection with each of these industries which would have to be especially analyzed to determine how great the competitive pressure is on the mills which are still maintaining the code standards. I think the evidence is conclusive in the case of the silk industry that a serious situation has developed. I think the evidence is also conclusive that in the cotton industry, those manufacturers who are maintaining the standards which did prevail under the code and that would include the vast bulk of the manufacturers, so far as I have any knowledge, are subjected to a type of pressure that did not exist under the N. R. A. code. Mr. WOOD. That indicates, then, in the very near future, that volunteer agreements among the employers to maintain the code will be completely destroyed, and the few that are attempting to maintain the code level will be compelled naturally to meet the competition of those who have disregarded the code and have lengthened hours and have reduced wages. Mr. HINRICHS. I would not be competent to pass judgment on that question. There is no doubt, in the history of the cotton textile industry during the decade of the twenties, there was very serious competition on the basis of wage scales. If the situation developed to that condition that you have described, where there were a few maintaining, were to come about, there is no doubt in my mind that it would mean a depression of wage standards. The point on which there may be a question of doubt and on which I have no information in the Bureau, is the precise number of individuals who have departed from code standards. In the case of cotton, so far as I have evidence, the situation is not yet one Mr. WOOD (interposing). It has been conclusively proven that a very small portion of the employers can destroy the price structure of those who attempt to maintain that structure. That has been proven beyond any question of doubt. Mr. HINRICHS. The Cotton Textile Institute ought to be able to give you some picture of the struggle going on in order to maintain their standards. Mr. WOOD. If we continue to drift as we are, we will be back to the point where we were in 1933. Mr. WELCH. Are there any further questions? If not, thank you, Mr. Hinrichs. The next witness is Mr. Schweitzer, general secretary of the American Federation of Silk Workers. STATEMENT OF FRANK SCHWEITZER, GENERAL SECRETARY, AMERICAN FEDERATION OF SILK WORKERS Mr. WELCH. Will you give your name and who you represent? Mr. SCHWEITZER. My name is Frank Schweitzer, I am general secretary of the American Federation of Silk Workers. That is the silk department of the United Textile Workers. Mr. SCHNEIDER. You do not cover the rayon industry, do you? Mr. SCHWEITZER. Silk and rayon; yes. Mr. Chairman and gentlemen of the committee: Representing and speaking on behalf of the workers of the silk and rayon division of the textile industry, I sincerely urge your committee's favorable recommendation for the enactment of this measure as a permanent instrument of stability for the entire textile industry. The absolute necessity for immediate stabilization in the silk branch of the industry I do not think will be denied by any witness that may appear before this committee regardless of their opinion as to the soundness or feasibility of the enactment into law of this bill; neither do I think that any one can honestly or well dispute the fact that a vast portion of the employees have suffered wage reductions since the nullification of the N. R. A. by the Supreme Court. From personal observation, I would say that approximately 80 percent of our silk workers have suffered wage reductions varying from 5 percent to 40 percent; machine loads have also been increased in approximately 40 percent of the industry; hours of work have likewise been increased in many instances through one form or other. This form of violation, however, is perhaps the least we have to contend with in the silk division due undoubtedly to the fact that the market demand for this product in recent years was very limited, proof conclusive that hours should be reduced through Federal legislation, inasmuch as the necessity of shorter hours of production is so very apparent that with perhaps only one exception the many silk manufacturers submitting testimony at the code hearings held just prior to the Supreme Court's decision suggested a reduction of hours from 80 to 40, and certainly up to the present time no effort in that direction has been made by the manufacturers through self-regulation of industry by industry. To further support our contention, I quote from testimony submitted at the above-mentioned hearing by Mr. Peter VanHorn, impartial chairman of the Silk Code Authority, and president of the Federated Textiles Trade Association of Silk Manufacturers: In January of 1935, the Silk Code Authority submitted a master code for the entire textile industry to the textile division of N. R. A. proposing one shift of 40 hours and a minimum wage for weavers of $17 per week. This was done only after a 5 months' careful study of the industry's condition. I also quote from the testimony submitted at the same hearing by Messrs. Herman Chopak and Louis Lazarre, representing the Converters Association, an organization representing a yearly sales value of over $100,000,000: It is estimated that on an 80-hour-week basis of work rayon and silk looms now engaged in the production of these fabrics could produce over a billion yards in 1 year, a figure more than double the actual consumption. As a means of stability on prices and production and eventual increase in wage rates, a twoshift operation of 24 hours is suggested. I could quote at length from evidence submitted at that hearing by the representatives of both management and labor, that more adequate governmental supervision was necessary than that provided in the various textile codes governing the several divisions of the textile industry. However, in order that the time of your committee should not be taken up by unnecessary repetition, I respectfully suggest that your committee avail itself of the valuable information relative to this matter contained in the transcript of the proceedings of that hearing which I am sure is available to your committee. Contrary to testimony submitted at this hearing in opposition to the enactment of this measure, I am firmly convinced that the only possible solution to the competitive problem confronting this important basic American industry is to regulate through governmental supervision the competitive factors which affect labor conditions, wage rates, work assignments, and hours. And this bill provides such supervision through the establishment of minimum wage rates for each occupational group and such other measures supervising or regulating work assignment and hours of work, etc., throughout the entire industry, thereby establishing uniformity of labor costs and at the same time outlawing the common practice of industry using labor conditions as a competitive football. Mr. Chairman, I want to emphasize the absolute need for the definite establishment of compulsory uniform minimum wage rates, by citing the Paterson, N. J., and New England situations, and other sections where our people have managed to maintain organization. Some years back, Paterson, N. J., produced more than 90 percent of all silk fabrics. The city was commonly known as the Lyons of |