should not throw stones. At least, they should practice what they preach. I know one plant which has a chemical engineer who recently made a mistake in chemical calculations and timing which caused a loss of about $20,000. This has happened plenty of times before. Yet this same plant has been running in the red, at least they say so, for several years. They have come to their employees several times and said, "You must help us to survive. You must let us lay some of you off and the rest do more work or we will have to go out of business." They politely ask labor to pay for the losses caused by the inefficiency of the supervisory force. Recently the production manager of the plant where I work asked me to formulate a plan whereby the production department of the plant could be run with a force of 215 men, and asked how much I would pay them. This plan for running the department on 215 men calls for a lay-off for 98 men. He did not ask what I would do with the men laid off. He didn't care what became of them. He has made several proposals for reducing the employee force with the simple explanation that there are too many men in the plant. He is only an example of many more in the rayon plants. I might add here that he also offered to pay my expenses on a trip to several rayon plants to get data for him on working conditions, the work load, and wages. He also offered me a job as supervisor in the plant. But I want to recall that the offer was at a time when we were then having labor trouble, and I was one of the officers of the union. Thank Heaven, there are some humane, broad-minded, Christian men in charge of some rayon plants. Our general manager, Mr. Bierne Gordon, is, I believe, as liberal toward labor as anyone in the rayon industry. But he has been forced to present some proposals of stretch-out because the price manipulations and grasping policy of some of the large companies have forced him to do so. The production manager is of the other type, however, and the only thing, I believe, which keeps him from being about the worst employer in the rayon industry is the pressure of Mr. Gordon, and our union, which is about 93 percent strong. Until recently our plant was producing and selling at a loss, partly because the price had been forced down to such a low level by the large financially strong companies. These large companies could still make a profit while our plant could not because our manager has been humane enough to keep our work load lighter than his competitors. I say the industry should be investigated and something done to prevent the market price going down to such a low level that the small plants cannot exist. The only way to do this, in my opinion is through National Government regulation. Laws such as this Ellenbogen bill provides are needed not only for labor but for the protection of the small plants which are in danger of being eaten up by the actions of the large market controlling companies. Some of the small companies say they want no Government regulation but admit something is needed for their protection. If these plants are allowed to close because the large companies will not let them run at a profit, all their employees which, altogether amounts to thousands, will be forced out of work onto Federal, State, or local relief. This is decidedly against the general welfare of the people and calls for action and laws to prevent such a thing happening. The employers will not get together voluntarily nor will they stand by any voluntary agreement made by them. Some of them would revert back to the old stand-by-cutthroat competition, and the rest would have to follow to a greater or less extent. This is not my opinion but the stated opinion of one of the manufacturers. This is proof enough, I think, that Federal Government protection and regulation is needed as soon as possible before the situation gets any worse. In the summer of 1935, our organization, the Synthetic Yarn Workers of America, offered to cooperate with the small companies to get protection for them from the developments and policies which were forcing them to run in the red. They refused our cooperation, so they are unwilling to cooperate openly with labor. The only out is Federal Government protection. Some plants, mainly in the South, which seem to act in the same way as most of the mills in the South and in other branches of the textile industry, pay wages that do not allow for any luxuries nor emergency funds for sickness nor old age. There is a wage which results in a bare existence for some workers. The managers of these mills are making thousands while their employees barely live. That is a good example of the Golden Rule in any language. There are no two plants with the same work or production load or wages. All are expanding or contemplating it. Some are working some employees as much as 16 to 24 hours' overtime per week at straight-time pay. I dare say all plants are contemplating further stretch out. Leveling out and regulation of wages, work load, and production is needed and has been needed for some time in order to put all plants and employees on a more even, competitively fair basis. Having a different wage or work production load for the operator in one plant than in another plant places the plant having the greatest work load and the resulting lower labor cost per unit of production in a very unfair competitive position. Other plants cannot compete long under this condition. They are forced to reduce their cost of production nearer to the level of their most ruthless competitor. Labor is always the one to bear the brunt of the reduction in jobs and income as a result. If an operator or any employee does a certain amount of work or produces a certain amount of goods he should get the same pay as an operator in any other plant who produces the same amount under the same conditions. It makes no difference whether he is in the North or in the South. He is getting paid for work done and skill performed, not for living in this State or that State or this section or that section. Whether the southern worker is efficient or not, he should get the same pay as his fellow worker in the North for producing a like amount. No doubt you will hear the argument forwarded later by the company representatives, who, for some reason or another, I believe will oppose this bill, that the rayon industry does not need regulation nor is in a position to allow regulation to occur because it is a new industry; it is only in the experimental stage and is not ready for stabilization. I agree that the industry is in an experimental stage. The process was developed by chemical experiment. The process is a chemical process in every respect up to the last step of winding onto cones or skeins or bobbins, as the case may be. Being a chemical process, it will always be in the experimental stage. Experiments are constantly being performed to improve the strength, texture, variations, and uniformity of rayon. Experiments are being performed to try to find varied uses for rayon and its byproducts. All companies are trying to find a wider market for their product. However, this is not the only industry where experiments are being performed. The automobile, steel, oil, paper, or any of the other branches of the textile industry are also continually experimenting to improve their product and to widen the demand and market for their products. They have always experimented and they always will. That is the reason for what advancement we have. It is part of any business program. I cannot agree that the rayon industry is a new one. The first rayon produced on a manufacturing scale was produced about 1880. Some was produced in this country before the World War. When it started and grew, the manufacturers had imported machinery, chemists, and supervisors from foreign countries who had had years of experience in technical and executive lines in connection with the manufacture of rayon. Most of these are still connected with these rayon plants. Some employers will probably say that their employees do not want regulation nor a union. I would not believe anyone who says such a condition exists in any plant. The union is the only real, frank, fearless voice the employee has, and this applies to the rayon industry as well as any other industry. Past experience would make any employee keep silent and take what he got if he had no union. Nine times out of ten he would be demoted or fired if he even complained individually. The only way, in my opinion, to overcome this intimidation and fear on the part of the employee is by having a strong union in every plant which will guarantee the employee the right to express his real opinion and views without fear of getting thrown out of a job. Free speech is a constitutional right of all Americans. But you have to have a union in most plants in order to be able to use that right in labor discussion. Our manager says he would believe the answers given by our union committee but cannot rely on the expressed opinion of the individual in the plant because he believes that the individual would be a yes man because of fear of results if he disagreed. He also admitted that by having meetings with the union committee he has found out things about his plant which he never knew before. He also admitted the union has saved the company thousands of dollars in various ways. There is no rayon plant which can be called a healthy place in which to work. There is the danger of explosion and asphyxiation from carbon gas in some departments. There is the danger of inhaling chlorine gas in some departments. In other departments the floor is extremely wet or slippery. Some have to work in a spray consisting of sulphuric acid and other ingredients. There is great danger of permanent injury to the eyes or lungs from the inhaling or contact with the various alkalies or acids. This is, I believe, worse in the older and smaller plants. Some say they cannot maintain healthier conditions because financial difficulties will not permit it. I now refer you to section 19 on page 22 of the bill which regards hours of labor. The employers will probably argue that this set-up is unworkable in the rayon industry. I say it is workable whether for day workers or shift workers. In regard to paragraph (e) under this section and the first part of section 27 on page 33, which regards the paying of double time on Sundays and holidays and the paying of a 5-percent bonus to employees in plants operating on three shifts, employers will say this is uncalled for and they cannot afford it. In our plant we get time and one-half for Sunday work and for time put in on the Fourth of July and Christmas. The union obtained the holiday concession. The company installed the Sunday concession when the plant started and they admittedly say it was done because they knew it would be bad to get workers on Sunday and that Sunday work is most undesirable. I notice none of the executives spend much time in a plant on Sunday; but most of them do not want to pay those who have to work on Sunday any premium for it. If other branches of the industry can do it and some plants in our industry can do it, and some admittedly can, it is only fair to employers in other branches and in all rayon plants that all should be used alike. The 5 percent premium for night work is plenty small enough for the inconvenience, health-breaking conditions connected with night work. The continuous changing of hours affects anyone's digestion, sleep, and general health. It is a well-known fact that a person's vitality is lowest in the early morning hours, yet the worker must keep up the pace set by day workers. I say this premium is plenty small and should be paid. The employers have the advantage of continuous operation over other branches, but labor so far gets none of the benefits or profits derived from it. As far as the rayon industry is concerned, according to all available reports, every plant gets at least some of its raw material from some other State or section of the country. They likewise ship at least some of their production to some other State or section of the country. After an analysis of the bill I can find no provision as to wages, hours of work, classification of jobs, production control, or any other provision which is not needed nor which is not applicable to the rayonproducing industry. No provision would incur any noticeable detriment upon any company. All the provisions are needed to help stabilize the industry and its labor conditions. Mr. GORMAN. Mr. Chairman, we have four workers who merely want to be placed on the record as favoring this legislation. They are Paul E. Dean, W. D. Smith, Lindsey Smith, and Findley Garrett. STATEMENT OF PAUL E. DEAN Mr. DEAN. Mr. Chairman and gentlemen of the committee, my name is Paul E. Dean. My address is Clinton, S. C. Brother Frier and the other brothers have covered all of the points that I had intended to bring out. This particular mill that I will mention we have had considerable trouble. We have had this mill cited before the different boards, and we have a case pending now before the National Labor Relations Board as to discrimination against employees. I am here now asking you to make a favorable report, if you possibly can, giving us the privilege of exercising our rights. Mr. GORMAN. Mr. Chairman, Mr. Dean wishes to place this information in the record that he has on this paper here. Mr. KELLER. He may do so. Mr. DEAN. Yes; I would like to have this in. (The documents referred to are as follows:) Copies of evidence. Cloth shipped April 2, 1935, to Windsor Print Works, North Adams, Mass., in car box no. 2545, initials, C. N. & L., manufactured by the Clinton Cotton Mills, Clinton, S. C., manufacturing of convertible cotton goods. Witness: Ben Morris, Jefferson Street, Clinton, S. C., John W. Davis, Clinton, S. C.; and Paul E. Dean, 116 North Sloan Street, Clinton, S. C. (style C, bale no. 5586, yards, 2,806; style C, bale no. 5290, yards 2,772). CLINTON FRIENDSHIP ASSOCIATION Charter being used for other purposes than represented, the overseers and assistant overseers or second hands forcing the employees of the plant in this association by threats of loosing their jobs. NOTE.-The vice president, Mr. Roy Holtzclaw, assistant overseer in spinning department, having power to hire and discharge help. To whom this may concern: Mr. SAM FOSTER, second hand in spinning no. 2 evening shift stated, if my son would join the Friendship Association, Mr. Foster would give my son, Arthur Smith, a regular job. To whom this may concern: (Signed) Mrs. EMMA SMITH, (I) Arthur Smith swears, Mr. Sam Foster, second hand or assistant overseer in spinning no. 2, evening shift stated in person he (Sam Foster) would give me (Arthur Smith) a regular job if I would join the Friendship Association, but after I refused to join the association, I have not received any work. (Signed) ARTHUR SMITH, NOTE.-Clinton Friendship Association anyone living in the city of Clinton, S. C., being eligible for membership in this association, the overseers of the Clinton Cotton Mills attend these meetings regular and take an active part in the association affairs. Taking dues out at office, 40 cents a month NOTICE Pursuant to a contract this day entered into by and between the Clinton Cotton Mills and the Clinton Friendship Association, only members of the Clinton Friendship Association will be employed in said Clinton Cotton Mills after this date, August 24, 1935. All seeking employment in said mills will be required to exhibit membership cards in said association. Unless he or she shall exhibit a power of attorney authorizing said association to represent him or her in all matters pertaining to collective bargaining |