r
OFFICE OF NATIONAL RECOVERY ADMINISTRATION
DIVISION OF REVIEW
FINANCIAL AND LABOR DATA ON THE
WOMEN'S NECKWEAR AND SCARF INDUSTRY
By
W. A. Gill
WORK MATERIALS NO. THREE
INDUSTRY STUDIES SECTION
March, 1936
/
\
OFFICE OF ITATIOilAL RECOVERY ADimTISIRATIOlI
DIVISION OF REVIEW
FIlTAifCIAL A1TD LAB OF FATA 037 IKE
tfCMEK'S lIECEnEAH AID SCARP IITDUSTRY
By
W. A. Gill
IEDUSIHY STUDIES SECTI017
March, 1936
9770
?CECff(KJ
3y Adnini strati ve Order Number 538-2 approved on February 19, 1935
the author was appointed r member of a Commission provided for in Article
III, Section 3 of the Code of Fair Competition for the TTomon's ITeckwe; r
end Sc^rf Manufacturing Industry, to study the Industry and obtain facts
neccss-ry to determine the -rage differential bet-wen the several areas
in the Industry.
In making the study, information was obtained on -productivity of
labor, wages paid and hours worked, as well as financial data regarding
the concerns in the various areas. The necessity of making recoiTionda-
tions regarding the differential was obviated by the Supremo Court deci-
sion in the Schechter Case; "but it was considered wise to ire iare this
report containing certain of the information obtained in that study.
Examination of the productivity data throws some doubt on its valid-
ity on account of the small size of the statistical sample, and therefor
this information is not included herein.
This report is valuable for the following reasons:
1. It contains perhaps the only financial data
available on the Women's I!eckwea.r Industry.
2. Presented are data regarding the earnings of
employees by occupations - a field where there
is a paucity of information.
The Hational Women's lleckwerr and Scarf Association in its applica-
tion for a. Code for the Industry estimated that there ^ere 105 manufac-
turing establishments in the Industry in 1^33. Usable replies to the
questionnaire which was sent out rere received from 65 establi slime nts
for the financial data, and from 37 establishments for labor data. The
author regards the information contained herein fairly representative of
the Industry.
At the back of this report will be found a brief statement of the
sttidies undertaken by the Division of Review.
L. C. Marshall,
Director, Division of Review.
March 9, 1936.
/
9770
TABLE OF C 0 II T E II T S
PAGE
FOREWARD
CHAPTER I
FINANCIAL CONDITION 1
PROFIT AND LOSS 1
OPERATING EXPENSES 1
Materials 1
Labor 4
Rent 4
Selling Costs 5
Freight 5
CHAPTER II
LABOR 6
CHANGES 1933 TO 1935 5
MEDIAN HOURS 10
ICEDIAN HOURLY EARNINGS 10
MEDIAN WEEKLY EARNINGS 12
DISTRIBUTION OF HOURS
New York City 14
East 14
'Jest 13
DISTRIBUTIONS OF HOURLY EARNINGS 19
Net? York City 19
East 19
'..'est 22
DISTRIBUTIONS OF WEEKLY EARNINGS 24
New York City 24
East 24
West 27
• li-
9770
TABLES
TABLE I
TABLE II
TABLE III
TABLE IV
TABLE V
TABLE VI
TABLE VII
TABLE VIII
TABLE IS
TABLE X
Summary of Profit & Loss, 1934
Operating Expenses, 1954 . . .
Total Uuraber of Factory Employees, Tan-hours
worked, and weekly payroll, for weeks ending
Feb. 16, 1933 and 1935
Average Hours -per week, average weekly
wages, and Average Hourly Wage Rate, for
Weeks, Ending Feb. 16, 1935 and 1935 . .
Median Hours Worked per Week by
Employees - by Occupations for weeks
Ending Nearest Feb. 15, 1933 and 1935 .
iiedian Hourly Earnings of Enployees-
by Occupations, for a "reek ending-
nearest, Feb. 16, 1953 and 1935 . . . .
Iiedian Weekly Earnings of Erroloyees-
by Occupation, for a Week Nearest
Feb. 16, 1935 and 1935
Number and Percentage Distributions
of Factory Employees by Occupation,
according to Hours forked Per Week-
Hew York City
Number and Percentage Distributions
of Factory Employees by Occupation,
according to Hours Worked Per Veek-
Eastern Area
Number and Percentage Distributions
of Factory Employees by Occupation,
According to Hours Worked Per Week-
Mid-West and Far West Area
PAGE
2
5
11
11
15
15
16
17
-lii-
9770
PAGE
TA3LE XI
Number and Percentage Distributions of
Factory Employees by Occupation,
According to Hourly Wage Rate, Feb. 16,
1933 and 1934
New York City
20
TABLE XII
Number and Percentage Distributions of
Factory Employees by Occupation, Accor-
ding to Hourly Wage Rate, Feb. 16, 1933
and 1934
Eastern Area
21
TABLE XIII
TABLE XIV
TABLE XV
TABLE XVI
Number and Percentage Distributions of
Factory Employees by Occuoation, Accor-
ding to Hourly Wage Rate, Feb. 16, 1933
and 1934
Western Area 23
Number and Percentage of Factory
Employees by Occupation, According to
Weekly Earnings, Feb. 1933 and 1935-
New York City 25
Number and Percentage of Factory
Employees by Occupation, According to
Weekly Earnings, Feb. 1933 and 1935-
Sastern Area 26
Number and Percentage of Factory
Employees by Occupation, According to
Weekly Earnings, ?eb. 1933 and 1935-
Western Area 28
■IV-
9770
-1-
CHJUfOSH I
FINANCIAL CONDITION
PROFIT AND LOSS
Table I shows a combined profit and loss statement for firms in
the Women's Neckwear Industry replying to the Research and Planning
Questionnaire, The strong financial position of the Industry in 1934
is at once apparent with a gross profit of 13.2 per cent for the 65
firms reporting. Only 4 of the reporting firms showed a gross loss
for the year, and this loss was comparatively small, amounting to only
bl6,238, compared with a total gross profit of 1-1,342,784 for the 61
firms showing a profit.
It is further apparent that firms located in New York City, with
a combined gross profit of 14.fi per cent, made greater profits- than
the midwest and far west firms, whose combined gross profit was 7.1
per cent. *
It should be remembered that many of the establishments in the
East are not strictly comparable to those in other areas because most
of the New Jersey firms are making a slightly different product, namely
schiffli and lace neckwear.
OPERATING- EXPENSES
Materials . . . .
Table II shows the combined operating expenses for the firms re— •
porting. It is seen from this table that by far the most important
item is raw material cost. Eor New York City raw material cost amounted
to 55.2 per cent of total expenses.
The relatively high (62,4 per cent) proportion this item bears in
the East is probably explained by the different type of product made
in this section. In the manufacture of ordinary lace or tailored neck-
wear the raw materials, taffeta, crepe, pirue, cotton net, lace, etc.,
are not usually further processed ~by the necOcweaf manufacturer,* In the ■
New Jersey plants where they manufacture a large amount of schiffli lace
neckwear, on the other hand, net gray goods are 'either processed by the
neckwear manufacturer in a division of his plant or are sent out to be
processed by schiffli and embroidery establishments to a pattern pre-
pared by the neckwear manufacturer.
9770
TA3LE I
Women's Neckwear and Scarf Manufacturing Industry
SUMMARY OF PROFIT AND LOSS, 1934
_ , ___ ___„ All Firms __ ____ _
Increase
in Inven- Gross Profit or ..L_qs.sH
Area tory of Total , Per cent
Total Total Net Finished Operating of
^_ _ ___J0__5_1 Sal_ et__ __ __ Goods _ J_L^jense Amount sal e s_ __
Total... 65 $10,011,567 $13,229 $8,698,702 01,326,094 13.2
New York
City, . . .
West**.. .
__ ______ . . . ... Xi.r,m,G,-v^-^.Ar-,0-?-s- Prof.lA ._
Total... 61 $ 9,797,729 316,337 $8,471,784 $1,342,332 13.7
Hew York City 53 8,331,456 25,492 7,134,062 1,232,886 14.8
East 4 904,935 -3,233 855,134 46,568 5.1
West** 4 561,280 -5,872 492,533 62,878 11.2
55
8,401,960
22,256
7,194,657
1,229,559
14.6
L.N.Y. 4
904,985
-3,233
855,184
46,568
5.1
6
704,622
-5,794
648,361
49,967
7.1
__, ,._ , . _. Firms, wi th __Los s .
Total. 4 $ 213,338 $-3,158 r $ 226,918 $ -16,233 -7.6
New York City.. 2 70,504- -5,236 70,595 -3,327 -4.7
East '■ - - - -
We5t** 2 143,334 78 156,323 -12,911 -8.3
Source: Compiled by Industry Reporting Unit from Questionnaires sent out by
Research and Planning Division, NRA, supplemented by data gathered
__ A1L___Le jf _j§__.d J3x_y_.e. .%'J:t}___r>
* Gross Profit or Loss was obtained by adding to total sales an increase in
the inventory of finished goods (or subtracting any decrease), and sub-
tracting from this figure total operating expenses.
** Combined mid-west and far-west.
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LABOft
Next in imoortance is the item of direct labor cost amounting
to about 27 per cent of total expenses in both New York City and
the East. Especially noteworthy is the fact that, in snite of the
higher wage rates existing in New York City, the direct labor cost
is higher (32.5 per cent) in the West.
While reasons for these differences are not as clearly defined
and as obvious as one would desire they are at least partly attribu-
table to the following:
1. Higher labor costs in the West are partly due to
lack of successful cooing with the hand to mouth sfaall orc.er buying
of the retailers who make up a sizeable prooortion of the trade
of the western firms.
2. The relatively lower Eastern labor sosts are due to:
a. The disorooortionately high material cost due to
factors explained above which would make labor cost
a smaller uortion of total costs.
b. The fact that some manufacturing operations are
slightly different from orthodox neckwear manufacture,
for example, instead of men cutters at a high union wage
scale cutting in block as in New York City and the West,
designs are usually individually scissor-cut at low wage
rates by girls in the New Jersey Plants.
c. As shown by the wage distribution tables which follow
later in this reoort over 30 per cent of the employees
in this area were receiving less than the basic minimum
of 37.3 cents per hour ($14.00 tier week)
C "ter this investigation had been started this group petitioned
the Administration for a wage differential. Final action was never
taken on this subject).
BENT
Despite the fact that the New York City. firms have consistently
argued that they have higher rent than those in the West it appears
from the tabulation that this item for both areas is 2.0 per cent of
the total expenses but because of their greater volume of business,
despite the fact that New York firms do have higher rent pe* estab-
lishment, this item is relatively no larger in New York than in the
West.
Office salaries (excluding executives) likewise apoear to be
comparable in the two areas.
977t
-5-
SELLING COSTS
It seems that it really costs the West more to sell its mer-
chandise; 7, r6 per cent of ios e:cpenses is absorbed "by this item
compared with only 6.6 per cent in 1-evj York City. This is probably
explained by the fact that a large -proportion of the Hew York merchan-
dise is sold in the show room of the factory while in the West it is
necessary to rely more upon salesmen.
FREIGHT
The explanation for the higher freight percentage for Hew York
Citv is not clear. Freight charges on raw materials should be lower
due to their closer proximity to sources of supply.
It may be possible that prior to the Code the New York City
firms were carrying on an extensive trade in areas remotely located
and were paying transportation charges on finished goods, a prac-
tice later forbidden by the Code.
9770
-6-
CEAPTER II
LABOR
CHANGES 1953 TC 1935
Table III shows the changes in employment, man hours and weekly
payroll for groups of identical concerns in the Somen's Neckwear Indus-
try in the New York City and Eastern Areas in the pre-code and Code
periods of 1933 and 1935.
In New York City employment increased 11 percent in this period,
and although the total man hours worked per week declined nearly 5 per-
cent the total weekly payroll increased slightly over 29 percent.
Even greater changes cccured in the Eastern Area where increases
amounted to 37 percent for employment, 10.4 percent for man hours, and
56.3 percent for total payrolls.
Unfortunately data are not available making possible similar com-
parisons for the Western Area.
Table IV shows changes in the average hours per week, average
hourly wage rate and average weekly earnings in the New York City and
Eastern Areas in the pre-code and Code periods of 1933 and 1935.
In Nov/ York City although the average hours per week declined
14.1 percent, the average weekly wages increased 16.5 percent, because
of an increased hourly wage rate of 35.6 percent.
In the Eastern area in spite of a 19.5 percent shortening of the
length of the work week the average weekly wages increased 14.1 percent,
largex flue to a 42.3 percent increase in the average hourly wage rate.
Although it is not possible to shew changes occuring in the
Western area during this period, a comparison of conditions in the
various areas in 1935 is shown by Table IV.
At that time the average work week in the West was 34.6 hours,
while in the New York City it was 36.7 and in the East 38.0 hours per
week.
The hourly wage rates were 37, 43 and 61 cents per hour for the
Eastern, Western and New York City Areas, respectively, resulting in re-
spective average earnings ol $14.18, $15.00 and $22.33 per week.
MEDIAN HOURS. HOURLY AND WEEKLY WAGES BY OCJUPATION, 1935 & 1935
Later in this report are tables showing distributions of hours
worked per week, hourly wage rates, and weekly earnings by occupation
of employees in the Women1 s Neckwear Industry.
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-9-
In order to summarize this information and thereby make. possible
its "better visualization the medians of each of these distributions
have been calculated and used in the following tables and discussions.
9770
-10-
MESIAN H0U3S
Table V, shows a summary of the median hours per week by occupa-
tions for employees in the Women's Neckwear and Scarf Industry for a
week ending nearest February 16, 1933, and 1935, for Hew York City and
the Eastern Area (exclusive of New York City), and for a representative
week in the latter part of January and beginning of February 1935 for
the Western Area.
The median hours per week for all employees in New York City declined
from 45.2 hours per week in 1935 to 37.5 hours per week in 1935, a de-
crease of slightly over 17 per cent. In the Eastern Area, median weekly
hours for all employees declined from over 50 hours per week in 1933 to
40.8 hours per week in 1935. In the Western Area, the median hours per
week for all employees in the early part of 1935 '-'ere 38.3 hours per
week.
The median hours do not vary extremely among the various occupations.
In 1933, in New York City, operators worked the shortest week, 44.4 hours
and finishers the longest 46.4 hours.
In 1935, in New York City, there wore no differences in the median
work week of individual crafts, all crafts having a 37.5 hour median
work week. In the East in 1933 all crafts except "others" had a. median
work week longer than 50 hours. In the East the variation in the median
work week by craft wps small in 1935, the shortest being 40.5 hours for
pressers and the longest 40.9 hours for finishers. The median hours per
week of the employees in various crafts in the West in 1935 showed greater
variation than those in either of the other two a,ruas, ranging from 37.0
hours for finishers to 30.9 hours for pressers.
MEDIAN HOURLY EARNINGS
Table VI shows the median hourly earnings of employees, by occuoa-
tions for a week ending nearest February 16, 1933 and 1935, for New York
City and the Eastern Area and for a representative week in January or
February 1935 for the Western Area.
Median hourly earnings for o.ll enrol oyees in the New York City area
increased from 41 • 7^ per hour in 1933 to 56,9^ per hour in 1935, an in-
crease of slightly over 30$. For the Eastern Area in the same rieriod,
median hourly earnings of all employees increased from 27.5r5 'per hour to
39»4rf per hour, an increa.se of slightly over 43 per cent. Median hourly
earnings for all employees in the Western Area, in the early part of 1935
were 40»6rf per hour.
Examining the median hourly earnings of the various crafts, we find
the greatest improvement in the earnings of the finishers, thcise in the
New York City and the Eastern Area., respectively, increasing from 26.9
and 21.1 cents per hour in 1933 to 46,9 and 35.3 cents per hour in 1935,
9770
-11-
Earnings of "other employees in the Eastern Ares show almost as
great an improvement, increasing from 23.8 to 35.9 cents per hour in this
period.
TABLE V
WOMEN'S NECKWEAR AND SCARF INDUSTRY
MEDIAN HCURS WORKED PER WEEK BY EMPLOYEES BY OCCUPATIONS
FCR A WEEK ENDING NEAREST FEB. 16, 1933 & 1935.
mt bmm
Occupation
New York
City
. EAST
)
WEST
1933
1935
1933
1935
1935 (a)
T»tal
45.2
37.5
over 50.0
40.8
38.3
Cutters
44.6
37.5
_
—
38.8
Operators
44.4
37.5
over 50.0
40.7.
38.1
Pressers
45.5
37.5
over 50.0
40.5
38.9
Finishers
46.4
37.5
over 50.0
40.9
37.0
Others (b)
35.3
37.5
49.4
40.8
38.7
(a) For a representative week iri -January or February 1935
(b) Included other factory employees only.
SOURCE: Compiled "by Industry Reporting Unit .from Questionnaires sent out
by N.R.A. Research and Planning Division, supplemented "by data
collected "by the author in -the field.
•TABLE VI
» «
WOMEN'S NECKWEAR & SCARF INDUSTRY
MEDIAN HOURLY EARNINGS OF EMPLOYEES BY OCCUPATIONS FOR A WEEK
ENDING NEAREST FEBRUARY 16, 1933 and 1935.
Occupation
New Yi
Drk
City
EAST
WEST
1933
1935
1933
1935
1935 (a)
Total
4i. y
56.94
• 27.54
39.4.4
40.64
Cutters
■'■133.3
over
' 100.0
-
-
81.3
Operators
48.6
64.7
31.4
45.3
46.2
Pressers
35.3
50.2
27.5
39.0
39.0
Finishers
26.9
46.9
21.1
35.3
38.6
Others (b)
31.3
46.4
• 23.8
35.9
39.0
(a) For a representative week in January or February 1935
(b) Includes other factory employees only.
SOURCE:
Compiled by Industry Re-oorting Unit from Questionnaires sent out
by N.R.A. Research and Planning Division, supplemented by data
collected by the author in the field.
9770
-12-
Median earnings of all crafts other than finishers in the New York Area
were, above 30<£ per hour in 1933, increasing to over 46rf per. hour ih"l935.
Attention is called to the high earnings of cutters in this area,
earning 83.3<£_p.er hour in 1933 and increasing over $1.10 per hour in
1935. ' _,
That important class of employees, the operators, in 1933 received
median earnings of 48.6 and 31.4 cents per hour in New York City and the
East. In 1935 they received 64.7, 45.3 and 46.2 cents per hour in New York, .
the East and West, respectively.
MEDIAN WEEKLY EARNINGS
Table VII shows the median weekly earnings of =mplqyees, by occupations
for a week ending nearest February 16, 1933 and 1935,. for New York City
and the Eastern Area, and for a representative week in January or February
for the Western Area.
Median weekly earnings for all employees in the New York City Area
increased from $18.12 in 1933 to $20.85 in 1935, anuincrease of slightly
over 15$. Median weekly earnings for all employees in the Eastern Area
increased from $13.44 in 1933 to $15.41 in 1935, an increase of slightly
over 14-5 per cent. Median weekly earnings of all employees in the West
in 1935 were $15.82 per week.
Examining the earnings by crafts, we again find the greatest improve*
ment in the earnings of the finishers, their earnings in the New York City
Area increasing from $12.31 in 1933 to $14.89 in 1935, and in this Eastern
Area increasing from $10.83 to *14.47 in the same period.
"Other" employees also showed large increases in earnings, improving
in the New York City Area from $13.80 in 1933 to $18.11 in 1935, and in
the Eastern Area from $11.33 to $14.00.
Pressers in the Eastern Area also made large gains, their, median
weekly ^rnings increasing fram $12.50 in 1933 to $15.25 in 1935.
In 1933 median weekly earnings of operators were $20.42 and $16.00
per week in New York City and the East. 'In 1935 they were $23.29, $17.08
and $17.32 in New York City, the East and West respectively. >
Many of these large increases in the earnings in the New York City
Area may be partly attributed to the almost complete unionization of the
industry in that area during the N.R.A. The other areas do not show such-
large increases since unionization had affected them very little, if at all.
9770
TABLE VII
WOMEN'S NECKWEAR AND SCARF INDUSTRY
MEDIAN WEEKLY EARNINGS OF EMPLOYEES BY OCCUPATION.
FOR A WEEK NEAREST FEB. 16, 1933 and 1935.
Occupation
New York C:
Lty
East
West
1933
1935
1933
1935
1933
1935(a)
Total
$18.12
$20.85
$13.44
$15.41
*15.82
Cutters
37.50
Over
45.00
-
-
30.00
Operators
20.42
23.29
16.00
17.08
17. ?2
Pressers
15.41
18.43
12.50
15.25
15.15
Finishers
12.31
14.89
10.83
14.47
14.14
Others (h)
13.80
18.11
11.33
14.00
15.10
(a) For a re-ore sentative week in January and February 1935
(b) Includes other factory employees only.
SOURCE: Compiled by Industry Reporting Unit from Questionnaires sent out by
N.R.A. Research and Flannirg Division, suTroleraented by data collect-
ed by the Author in the field.
9770
-14-
DisTHiBUTiors of ::ouas
Mew York City
Ta"ble VIII Shows distributions of the hours worked per week by
occupations of Hew York City employees of the Industry fora week
nearest February 16, 1933 and 1935.
In 1933 the 40 to 42.4, the 42.5 to 44.9 and 45 to 47.4 hour
groups were the most important with 16.1, 20.9 and 43.3 percent of
the total employees falling in these respective groups.
Although the size of the sample for some occupations is rather
small, no great difference between the working hours of the different
occupations is apparent for this year. The distributions all follow
the same general pattern with high concentrations in the groups
mentioned.
The almost complete lack of any part-time employment in 1933 is
strikingly shown in these distributions with only 4 per cent of the
total employees working less than 30 hours per week.
A shortening of the work week in all crafts is apparent in the
latter year. A definite median appears in 1935 distribution with 50
per cent of the total employees working 37-g- hours per week. The 1935
distributions show a wider scattering of the employees among the
various brackets than those of the earlier year.
Furthermore, there appears to have been sn increase in part-time
employment in 1935 with 16 per cent of the total employees working
less than 30 hours per week.- This part-time employment is especially
noticeable to the distribution of the operators, pressers and
finishers with 11.9 per cent of the operators and 29.6 per cent of
the finishers working 25 to 27.4 hours per week and 14.3 per cent of
the pressers working 23.5 to 24.9 hours per week.
East
TaK.e IX shows similar distributions of the hours worked per week
by employees in the East.
In 1933, 66.4 per cent of the total employees were working
longer than 50 hours per week. A large percentage of the employees,
over 60 per cent in each craft except the "other" employees, were work-
ing more than 50 hours per week in this period and 45.4 per cent of
this latter occupation were working this long work week. A definite
median appears in the 1935 distribution with 60.3 per cent of the
employees falling in the 40 to 42.4 hour group.
The distributions for the different occupations follow the sane
general pattern as that for the total, with this same hour group the
most important, over 50 per cent of the employees in each occupation
falling in this group.
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5770
-18-
ITo appreciable amount of part-time employment is apparent in this
area in either period.
West
Table X shows distribution by occupations of the hours worked per
week by employees in the Western Area for a representative week in the
latter part of January and early pa.rt of February, 1935.
The less than 20 hour, the 35 to 37.4, the 37.5 to 39.9 and the
45 to 47.4 hour groups are the most important with 12.2, 13.6, 33.3
and 18.6 per cent of the total employees in these respective groups.
The distributions of the individual occupations "by no means
follow the same pattern as that of the total. The cutters are fairly
well concentrated in the 37.5 to 39.9 hour group with 66.7 per cent
in that bracket.
The 35 to 37.4, the 37.5 to 39.9 and 45 to 47.4 hour groups are
the most important for the operators with 22.1, 33.6 and 16.8 per cent
of these employees in those respective groups.
The size of the sample of the ;oressers is probably too small to
warrant too definite a conclusion, but in general, it seems to follow
about the sane pattern as that of the operators.
The distribution of the hours worked by the finishers is most
striking, since among this class of employees we find 29.6 per cent
working part-time of less than 20 hours per week, yet on the other
hand, 24.2 per cent working over-time, that is 45 to 47.4 hours per
week. While the reason for this peculiar condition is not definitely
known, it is probably due to the fact that some of the plants in this
area were in the midst of their rush season, while other plants had
not yet gotten under way with their spring production.
9770
-19- •
i iiistrieution^f'^h^tj^ly earnings
New York City I
Table XI shows distributions of the hourly earnings of New York
City employees by occupations for a week nearest February IP, 1935.
No' well defined grouping 'exists in. the distribution for all employees
for either period. - '•
These distributions show improvement injthe earnings of all crafts
(of employees) in the year 1935 when compared with 1933. The improvement
is especially noteworthy among the lower-paid occupations. In 1933
nearly one-fourth of all the employees received less than 30 cfe'nfcs per
hour, while in 1935, only three-tenths of one per cent of all employees
were receiving less than this amount. In 1?35 the top of the lower
auartile of the distribution had moved up unt^l at that time it had
reached 47.4 cents per hour. /.
As would be expected, the cutters are phe best paid employees
in both periods. In 1933, the most important* bracket for this class
of employee was $1.C8 to $1.C69 per hour with* 31.9,1 of this class
of employee in this group. In 1935 improvement was such that $8 per
cnet of this class of employee were receiving over $1.10 per hour.
The size of the samole for the hemmers and gauge; runners
is rather snail. However, their earnings appear to be .very similar to
those of operators. '
In 1933 the operators were fairlv well scattered among, a large
number of brackets. The 40 to 44.9 and 59 to 54.9 and' the 6i to 69.9
were the most important with 16.2, 13 and 14 per cent of this class of
employee in each of these respective groups; Probably, the reason for
such wide diversification -in the earnings of operators5 is the fact that
this class of employee is usually paid on a. piece-work basis, and since
it is likely that wide. differences in their, efficiencies and willingness
to work exists, their earnings, -naturally would vary tremendously. In
1935 a general improvement is noted in the earnings of these employees.
Thev are fairly well concentrated in two brackets with 54.2 per cent
of the total in the brackets between 60 and 79.9 cents per hour.
In 1935 the most important bracket for the pressers was that
between 25 and 29.9 cents per hour with 28-. 6 per cent of these employees
in this bracket. In addition thereto, all other brackets from this
point up to 44.9 were important, each of these brackets having over
11 per cent of the employees in this occupation. In 1935, a definite
median occurs in the distribution with 79.9 per cent of this class
of employee in the groups between 47.5 and 54.9 cents per hour.
East
Table XII shows similar distributions of the hourly earnings
of employees in the Eastern Area.. 'The size of the sample in many of the
distributions is rather small, Of the' tojbal employees in 1933 24 per
cent, were earning 2© to 24.0 .cents per hbur. This! concentration of
the employees in this lower bracket is largely due to a large percentage
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of the -pressers, finishers, paid "others" in low earning brackets. In
1935, the earning of all employees increased considerably; especially
noteworthy are increases among the pressers, finishers and" others*"
In 1933 the largest concentration of operators were in the
"brackets between 20 and 37.2 cents per hour, with over 90 per cent
of the operators in these brackets. The earnings of the operators
show the general upward shift in 1935 with high concentrations in the
brackets between 40 and 49.9 cents per hour.
The pressers in 1933 were more poorly paid than the operators
with 23.1 per cent receiving between 10 and 14.9 cents per hour. Both
the finishers and the other employees show high concentrations- in the
lower brackets in 1933 with high concentration in the brackets bet^eeii
15 and 24.9 cents per hour. Anong the 1935 distributions of pressers,
finishers and "other" employees, high concentrations are found in the
brackets between 30 and 39.9 cents per hour.
TTest
Table XIII shows the distributions of the earnings of employees by
occupations according to hourly earnings per week in the Western Area for
a representative week in the latter part of January and early part of
February, 1935. In the distribution of all employees a definite median
with over 80 per cent of the employees concentrated in the brackets
between 37.3 and 47.4 cents per hour is apparent. High concentration
in the lower of these three brackets is caused by a large number of
pressers and finishers and "other" employees falling in this low end
with S3. 3 and 76.9 per cent and 68 per cent of these respective occupa-
tions in this lover bracket earning between 37.3 and 39.9 ce?its per
hour.
Concentrations in the higher of these three brackets was brought
about b T a high concentration of operators in the 45 to 47.4 cents per
hour brackets, nearly 70 per cent of this craft being in this one
bracket.
The earnings of the cutters seem to be scattered well over the
whole distribution ranging from 30 to 99.9 cents per hour which is
quite different from conditions found in t he He- York City Area.
However, a concentration ap sears in this distribution with 44.4/S in the
80 to 89.9 cents per hour bracket.
9770
-23-
TABLE XIII
Women's ITsckwear and Scarf Manufacturing Industry
N0MBE2 AiJD PERCENTAGE DISTEI3UTI01IS OP FACTORY EMPLOYEES BY OCCUPATIOIIS ACCOEDIITG
TO HOUELY WAGS RATE,
^or A Representative Week in January or Febrauary, 1935
(8 Reporting Firms) (l.iid-¥est and Far-West Areas)
Hourly
Earnings Cutters Henmers Operators Pres- Finishers Others Total
Ho. (,o ers He* ',
Less than. 25. . . _
25.0-29.9 1 .9 - 1 .4
30.0-34.9 1 1 .9 2 9 2 15 0.4
35.0-37.2 14 5 1.8
37.3-39.9 9 8.0 19 70 17 115 41.2
40.0-44.9 1 2 7 3.2 7 7 4 28 10.0
45.0-47.4 2 79 69.'.' 11 2 85 30.4
47.5-49.9 1 6 5.3 7 2.5
50.0-54.9 ,1 '8 7.1 9 3.2
55*0-59.9...... 2 1.7 2 .7
60.0-69.9/ 1 1 .4
70.0-79.9 1 1 .4
80.0-89.9 8 8 2.S
90.0-99.9 2 2 .7
l.OOor over....
Total 18 2 113 100.0 30 91 25 279 100.0
SOURCE: Compiled by Industry Reporting Unit from Questionnaires sent out "by
Research and Planning Division, II.R.A.
9770
-24-
DISTRIBUTIONS OF TffiEKLY IIARhIHG-S
hew York City
Table XIV sho^s distributions of the hew York City factory employ-
ees by occupation according to weekly wages paid for week ending nearest
February 16, 1933, and 1935. In 1933, over 50 per cent of the employees
earnings ranged from 12 to 21.50 per week. In 1935, the earnings of
all crafts show improvement when compared with 1935. In this year they
had increased until over 70 per cent of the employees fell within the
brackets bet'-een $14,00 and $27.50 per week.
The distributions of the hemners and gauge runners and operar-
tors appear to have been very similar in both years. Therefore, the
contention raised at one time by some Hew York ianuf .^cturers that these
crafts should have been separately classified and receive a lower
minimum wage, appears to have been unjustified. Among the hemmers, gauge
runners, and operators' occupations in 1933, high concentrations occur
in the brackets between $14.00 and $27.50 per week. In 1934, a general
shift upwards in the distributions of these employees is apparent, high
concentrations occurring in the brackets between $19,00 and $27,50 per
week,
Presaers appear to have been slightly lower paid than operators.
In 1933, they are highly concentrated in three brrckets between $12.00
and $16,50 per week. In 1935, they "ere highly concentrated in the t^o
bra.ckets between $16.50 and 21.49 per week,
The distributions of the finishers and other employees appear to
be very similar in both years. In 1933, ,;these employees show higher
concentrations in the brackets between $12,00 and $13.99 per week,
but in 1935, they show high concentrations in the brackets between
$12,00 and $18,99 per week with highest concentration for both occupa-
tions in the $14.00 to $16.50 bracket with slightly over 31 per cent of
each of these occupations in .this .bracket.
East
Table XV shows similar distributions of weekly earnings of em-
ployees in the Eastern Area. In this Area, the earnings of the operators
appear to have been slightly higher than those of the )ressers, finish-
ers, and "other , the distributions of these latter three occupations
being very similar.
In 1933, the operators were largely concentrated in the three
brackets between $12.00 and $13.99 per week. In 1935, they were con-
centrated in three bra.ckets between $14,00 and $21,50 per ™eelc
In 1933, the pressers, finishers and operators roughly
concentrated in the brackets between $6,00 and $16.50 per week. In
1935, they were concentrated in the brackets between $12,00 and $18,99
per week.
9770
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\7est
Table XVI shows similar distributions of weekly earnings of employ-
ees in the Western Area "but only for the 1935 period. In this year, all
eniplojrees appear to have been concentrated in the "brackets "between $12.00
•and $21»»5Cper week with three-fourths of the employees in these "brackets.
A definite median appears in the earnings of all groups except the finish-
ers and the cutters.
In the bracket between $16.50 and $18.99 per week, a large number
of operators, 36.3 per cent, are concentrated.
Tor the pressers, the concentration occurs in the ne::t lower
bracket, 23.4 per cent falling in the bracket between $14.00 and $16.49
per week.
The "other" employees are also concentrated in the same bracket with
68 per cent of " others" falling therein.
A large number of finishers are also concentrated in this bracket,
28-}r per cent falling here.
Due to -oart-tine employment, there is a large concentration of
finishers in the brackets of less than $5.00 oer week ^ith 26.4 per cent
of the occupations in this low bracket.
-28-
IABLE XVI
Women's Neckwear and Scprf ilanuf acturing Industry
NULE3ER AlID PERCENTAGE DISTRIBUTIONS OP FACTORY EMPLOYEES BY OCCUPATION ACCORDING
TO WEEKLY WAGES EABiiED
For Representative Week in January or February, 1935*
(8 Reporting Firms) I lid-West and Far-West Areas)
Weekly Earnings
Cutters
Hemmers
Ooci
•ators
Pres-
Finishers
Others
Total
No.
to
ers
no.
J
Less than $6 (a
)
1
24
1
25
9.3
4
3.5
1
3
1
9
3.2
1
.9
5
1
7
0 E)
$10.00-11.99...
2
1.8
4
3
9
3.2
$12.00-13.99...
1
16
14.2
3
9 '
2
31
11.1
$14.00-16.49...
1
2
20
17.7
13
26
17
79
28,3
$16.50-18.99...
, 4
41
Z6.3
6
19
3
73
25.2
$19.00-21.49...
26
23.0
2
2
30
10.8
$21.50-23.99...,
3
2.6
3
1.1
$24.00-27.49...
2
2
.7
$27.50-29.99...,
1
1
.4
$30.00-32.49...,
4
4
1.4
$32.50-34.99...,
$35.00-37.49...,
5
5
1.3
$37.50-39.99...,
$40.00-42.49...,
$42.50-44.99...,
$45.00 and over,
18
2
113
100.0
30
91
25
279
100.0
SOURCE: Compiled "by Industry Reporting Unit, from Questionnaires sent out bj
Research and Planning Division, N.R.A.
(a) These workers were part-time workers.
9770#
OFFICE OF THE NATIONAL RECOVERY ADMINISTRATION
THE DIVISION OF REVIEW
THE WORK OF THE DIVISION OF REVIEW
Executive Order No. 7075, dated June 15, 1935, established the Division of Review of the
National Recovery Administration. The pertinent part of the Executive Order reads thus:
The Division of Review shall assemble, analyze, and report upon the statistical
information and records of experience of the operations cf the various trades and
industries heretofore subject to codes of fair competition, shall study the ef-
fects of such codes upon trade, industrial and labor conditions in general, and
other related matters, shall make availeble for the protection and promotion of
the public interest an adequate revie-,7 of the effects of the Administration of
Title I of the National Industrial Recovery Act, and the principles and policies
put into effect thereunder, and shall otherwise aid the President in carrying out
his functions under the said Title. I hereby appoint Leon C. Marshall, Director of
the Division of Review.
The study sections set up in the Division of Review covered these areas: industry
studies, foreign trade studies, labor studies, trado practice studies, statistical studies,
legal studies, administration studies, miscellaneous studies, and the writing of cede his-
tories. The materials i.hich were produced by these sections are indicated below.
Except for the Code Histories, all items mentioned below are scheduled to be in mimeo-
graphed form by April 1, 1936.
THE CODE HISTORIES
The Code Histories are documented accounts of the formation and administration of the
codes. They contain the definition of the industry and the principal products thereof; the
classes of members in the industry; the history of code formation including an account of the
sponsoring organizations, the conferences, negotiations and hearings which ,r.ere held, and
the activities in connection ,vith obtaining approval of the code; the history of the ad-
ministration of the code, covering the organization and operation of the code authority,
the difficulties encountered in administration, the extent of compliance or non-compliance,
and the general success or lack of success of the code; and an analysis of the operation of
cz'li provisions dealing with wages, hours, trade practices, and other provisions. These
and other matters are cinvassed not only in teruis of the materials to be found in the files,
but also in terms of the experiences of the deputies and others concerned with code formation
and administration.
The Code Histories, (including histories of certain NRA units or agencies) are not
mimeographed. They are to be turned over to the Department of Commerce in typewritten form.
All told, approximately eight hundred and fifty (350) histories will be completed. This
nuaber includes all of the approved co"':3 cr.d some of the unapproved codes. (In Work Mate-
rials No. 18, Contents of Code Histories, will be found the outline which governed the
preparation of Code Histories.)
(In the case of all approved codes and also in the case of some codes not carried to
final approval, there are in NRA files further materials on industries. Particularly worthy
of mention are the Volumes I, II and III which constitute the material ofticially submitted
to the President in support of the recommendation for approval of each code. These volumes
9768—1 .
- ii -
set forth the origination of the code, the sponsoring group, the evidence advanced to sup-
port the proposal, the report of the Division of Research and Planning on the industry, the
recommendations of the various Advisory Boards, certain types of official correspondence,
the transcript of the formal hearing, and other pertinent matter. There is also much offi-
cial information relating to amendments, interpretations, exemptions, and other rulings. The
materials mentioned in this paragraph were of course not a part of the work of the Division
of Review. )
THE WORK MATERIALS SERIES
In the work of the Division of Review a considerable number of studies and compilations
of data (other than those noted below in the Evidence Studies Series and the Statistical
Material Series) have been made. These are listed below, gr:uped according to the char-
acter of the material. (In Work Materials No. 17, Tentative Outlines and Summaries of
Studies in Process, these materials are fully described).
Industry Studies
Automobile Industry, An Economic Survey of
Bituminous Coal Industry under Free Competition and Code Regulation, Economic Survey of
Electrical Manufacturing Industry, The
Fertilizer Industry, The
Fishery Industry and the Fishery Codes
Fishermen and Fishing Craft, Earnings of
Foreign Trade under the National Industrial Recovery Act
Part A - Competitive Position of the United States in International Trade 1927-29 through
1934.
Part B - Section 3 (e) of NIRA and its administration.
Part C - Imports and Importing under NRA Codes.
Part D - Exports and Exporting under NRA Codes.
Forest Products Industries, Foreign Trade Study of the
Iron and Steel Industry, The
Knitting Industries, The
Leather and Shoe Industries, The
Lumber and Timber Products Industry, Economic Problems of the
Men's Clothing Industry, The
Millinery Industry, The
Motion Picture Industry, The
Migration of Industry, The: The Shift of Twenty-Five Needle Trades Froi New York State,
192S to 1934
National Labor Income by Months, 1929-35
Paper Industry, The
Production, Prices, Employment and Payrolls in Industry, Agriculture and Railway Trans-
portation, January 1923, to date
Retail Trades Study, The
Rubber Industry Study, The
Textile Industry in the United Kingdom, France, Germany, Italy, and Japan
Textile Yarns and Fabrics
Tobacco Industry, The
Wholesale Trades Study, The
Women's Neckwear and Scarf Industry, Financial and Labor Data on
9763—2
- iii -
Women's Apparel Industry, Some Aspects of the
Trade Practice Studies
Commodities, Information Concerning: A Study cf NRA and Related Experiences in Control
Distribution, Manufacturers' Control of: Trade Practice Provisions in Selected NRA Codes
Distributive Relations in the Asbestos Industry
Design Piracy: The Problem and Its Treatment Under NRA Codes
Electrical Mfg. Industry: Price Filing Study
Fertilizer Industry: Price Filing Study
Geographical Price Relations Under Codes of Fair Competition, Control of
Minimum Price Regulation Under Codes of Fair Competition
Multiple Basing Point System in the Lime Industry: Operation of the
Price Control in the Coffee Industry
Price Filing Under NRA Codes
Production Control in the Ice Industry
Production Control, Case Studies in
Resale Price Maintenance Legislation in the United States
Retail Price Cutting, Restriction of, with special Emphasis on The Drug Industry.
Trade Practice Rules of The Federal Trade Commission (1914-1936): A classification for
comparison with Trade Practice Provisions of NRA Codes.
Labor Studies
Cap and Cloth Hat Industry, Commission Report on Wage Differentials in
Earnings in Selected Manufacturing Industries, by States, 1933-35
Employment, Payrolls, Hours, and Wages in 115 Selected Code Industries 1933-1935
Fur Manufacturing, Commission Report on Wages and Hours in
Hours and Wages in American Industry
Labor Program Under the National Industrial Recovery Act, The
Part A. Introduction
Part B. Control of Hours and Reemployment
Part C Control of Wages
Part D. Ccntrol of Other Conditions of Employment
Part E. Section 7(a) of the Recovery Act
Materials in the Field of Industrial Relations
PRA Census of Employment, June, October, 1933
Puerto Rico Needlework, Homeworkers Survey
Administrative Studies
Administrative and Legal Aspects of Stays, Exemptions and Exceptions, Code Amendments, Con-
ditional Orders of Approval
Administrative Interpretations of NRA Codes
Administrative Law and Procedure under the NIRA
Agreements Under Sections 4(a) and 7(b) of the NIRA
Approve Codes in Industry Groups, Classification of
Basic Code, the — (Administrative Order X-61 )
Code Authorities and. Their Part in the Administration of the NIRA
Part A. Introduction
Part B. Nature, Composition and Organization of Code Authorities
9768—2.
Part C. Activities of the Code Authorities
Part D. Code Authority Finances
Part E. Summary and Evaluation
Code Compliance Activities of the NRA
Code Making Program of the NRA in the Territories, The
Code Provisions and Related Subjects, Policy Statements Concerning
Content of NIRA Administrative Legislation
Part A. Executive and Administrative Orders
Part B. Labor Provisions in the Codes
Part C. Trade Practice Provisions in the Codes
Part D. Administrative Provisions in the Codes
Part E. Agreements under Sections 4(a) and 7(b)
Part F. A Type Case: The Cotton Textile Code
Labels Under NRA, A Study of
Model Code and Model Provisions for Codes, Development of
National Recovery Administration, The: A Review of its Organization and Activities
NRA Insignia
President's Reemployment Agreement, The
President's Reemployment Agreement, Substitutions in Connection with the
Prison Labor Problem under NRA and the Prison Compact, The
Problems of Administration in the Overlapping of Code Definitions of Industries and Trades,
Multiple Code Coverage, Classifying Individual Members of Industries and Trades
Relationship of NRA to Government Contracts and Contracts Involving the Use of Government
Funds
Relationship of NRA with States and Municipalities
Sheltered Workshops Under NRA
Uncodified Industries: A Study of Factors Limiting the Code Making Program
Legal Studies
Anti-Trust Laws and Unfair Competition
Collective Bargaining Agreements, the Right of Individual Employees to Enforce
Commerce Clause, Federal Regulation of the Employer-Employee Relationship Under the
Delegation of Power, Certain Phases of the Principle of, with Reference to Federal Industrial
Regulatory Legislation
Enforcement, Extra-Judicial Methods of
Federal Regulation through the Joint Employment of the Power of Taxation and the Spending
Power
Government Contract Provisions as a Means of Establishing Proper Economic Standards, Legal
Memorandum on Possibility of
Industrial Relations in Australia, Regulation of
Intrastate Activities Which so Affect Interstate Commerce as to Bring them Under the Com-
merce Clause, Cases on
Legislative Possibilities of the State Constitutions
Post Office and Post Road Power — Can it ^o Used as a Means of Federal Industrial Regula-
tion?
State Recovery Legislation in Aid of Federal Recovery Legislation History and Analysis
Tariff Rates to Secure Proper Standards of Wages and Hours, the Possibility of Variation in
Trade Practices and the Anti-Trust Laws
Treaty Making Power of the United States
War Power, Can it be Used as a Means of Federal Regulation of Child Labor?
9768—4.
■ - V -
THE EVIDENCE STUDIES SERIES
The Evidence Studies were originally undertaken to gather material for pending court
cases. After the Schechter decision the project *as continued in order to assemble data for
use in connection with the studies of the Division of Review. The data are particularly
concerned with the nature, size and operations of the industry; and with the relation of the
industry to interstate commerce. The industries covered by the Evidence Studies account for
more than one-half of the total number oi workers under codes. The list of those studies
follows:
Automobile Manufacturing Industry
Automotive Parts and Equipment Industry
Baking Industry
Boot and Shoe Manufacturing Industry
Bottled Soft Drink Industry
Builders' Supplies Industry
Canning Industry
Chemical Manufacturing Industry
Cigar Manufacturing Industry
Coat and Suit Industry
Construction Industry
Cotton Garment Industry
Dress Manufacturing Industry
Electrical Contracting Industry
Electrical Manufacturing Industry
Fabricated Metal Products Mfg. and Metal Fin-
ishing and Metal Coating Industry
Fishery Industry
Furniture Manufacturing Industry
General Contractors Industry
Graphic Arts Industry
Gray Iron Foundry Industry
Hosiery Industry
Infant's and Children's Wear Industry
Iron and Steel Industry
Leather Industry
Lumber and Timber Products Industry
Mason Contractors Industry
Ken's Clothing Industry
Motion Picture Industry
Motor Vehicle Retailing Trade
Needlework Industry of Puerto Rico
Painting and Paporhanging Industry
Photo Engraving Industry
Plusbing Contracting Industry
Retail Luaber Industry
Retail Trade Industry
Retail Tire and Battery Trade Industry
Rubber Manufacturing Industry
Rubber Tire Manufacturing Industry
Shipbuilding Industry
Silk Textile Industry
Structural Clay Products Industry
Throwing Industry
Trucking Industry
Waste Materials Industry
Wholesale and Retail Food Industry
Wholesale Fresh Fruit and Vegetable Indus-
try
Wool Textile Industry
THE STATISTICAL MATERIALS SERIES
This series is supplementary to the Evidence Studies Series. The reports include data
on establishments, firms, employment, payrolls, wages, hours, production capacities, ship-
ments, sales, consumption, stocks, prices, material costs, failures, exports and imports.
They also include notes on the principal qualifications that should be observed in using the
data, the technical methods employed, and the applicability of the material to the study of
the industries concerned. The following numbers appear in the series:
9768—5.
Asphalt Shingle and Roofing Industry Fertilizer Industry
Business Furniture Funeral Supply Industry
Candy Manufacturing Industry Glass Container Industry
Carpet and Rug Industry Ice Manufacturing Industry
Ceisent Industry Knitted Outerwear Industry
Cleaning and Dyeing Trr-de Paint, Varnish, and Lacquer, Mfg. Industry
Coffee Industry Plumbing Fixtures Industry
Copper and Brass Mill Products Industry Rayon and Synthetic Yarn Producing Industry
Cotton Textile Industry Salt Producing Industry
Electrical Manufacturing Industry
THE COVERAGE
The original, and approved, plan of the Division of Review contemplated resources suf-
ficient (a) to prepare .some 1200 histories of codes and NRA units or agencies, (b) to con-
solidate and index the NRA files containing some 40,000,000 pieces, (c) to engage in ex-
tensive field work, (d) to secure much aid from established statistical agencies of govern-
ment, (e) to assemble a considerable number of experts in various fields, (f) to conduct
approximately 25% more studies than are listed above, and (g) to prepare a comprehensive
summary report.
Because of reductions made in personnel and in use of outside experts, limitation of
access to field work and research agencies, and lack of jurisdiction over files, the pro-
jected plan was necessarily curtailed. The most serious curtailments were the omission of
the comprehensive summary report; the droppir.g of certain studies and the reduction in the
coverage of other studies; and the abandonment of the consolidation and indexing of the
files. Fortunately, there is reason to hope that the files may yet be cared for under other
auspices .
Notwithstanding these limitations, if the files are ultimately consolidated and in-
dexed the exploration of the NRA materials will have been sufficient to make them accessible
and highly useful. They constitute the largest and richest single body of information
concerning the problems and operations of industry ever assembled in any nation.
L. C. Marshall,
Director, Division of Review.
9768—6 .