(navigation image)
Home American Libraries | Canadian Libraries | Universal Library | Community Texts | Project Gutenberg | Biodiversity Heritage Library | Children's Library | Additional Collections
Search: Advanced Search
Anonymous User (login or join us)
Upload
See other formats

Full text of "Work materials ..."

BOSTON PUBLIC LIBRARY 



3 9999 06317 349 4 



OFFICE OF NATIONAL RECOVERY ADMINISTRATION 
DIVISION OF REVIEW 



REPORT OF THE COMMITTEE ON 

THE ECONOMIC AND SOCIAL IMPLICATIONS 

OF THE COMPANY STORE AND SCRIP SYSTEM 



By 

Charles B. Fowler 

Chairman 
Daniel Bloomfield 
Henry P. Dutton 



WORK MATERIALS NO. 4 



March, 1936 



OFFICE OF NATIOITIL EECOVERY ADMmiSTHATIOlJ 
DIVISIC^T ?j' nnviET 



REPORT OF THE COJ.n.ITTSi: 0^ 
THE E0C5T0i:iC k'vD SOCIAL liPLICATIOl^S 
OF T!IE COLTAT^'Y STORE AtTD SCRIP SYSTEM 



Charles 3. Fowler 

Cliairinaii 
Dardel Bloonfield 
Henry p. Dntton 



March, 1936. 



16224 



FOREWORD 



This report of the Com- ittee on The Economic and 
Social Implicatinns of the Company Store and Scrip Sys- 
tem made pursuant to Article IX, Section 4, of the Code 
of Pair Competition for the Retail Trade -ras prepared hy 
Messrs. Charles "3. Eovrler, Chairman, Daniel 31oomfield 
and Henry P. Dv-tton. 

The report ^as made in Octoher 1954 and was re- 
leased at that time. A revised edition (mth minor chan- 
ges) nas released Kovemher 1934 and it is here reproduced 
in order thr.t it nay he made widely availahle to students 
in the lahor field. 

At the hack cf this report '-rill he foimd a hrief 

statement of the studies undertaJjen oy the Division cf 

Revien. 

L. C. i.iar shall, 
Directcr, Division of Review. 

march IC, 1935. 
16224 



r 



WasMn.5:;ton, D. C. 
October 23, 1934 



Mr. Leon Henderson, Director 
Division of Hesearch and Planning 
National Recovery Administration 

Dear Mr. Henderson: 

The Committee talces pleas-ujre in submitting to you its report 
on the economic and social implications of Company Store sn.d Scrip 
System. This investigation has been undertal^en pursuant to Article IX, 
Section 4 of the Code of Fair Competition for the Retail Trade as ap- 
proved on October 21, 1933. This section reads as follows: 

" Cor;,:) any Scrip - The following provisions of this Section 
shall not become effective until March 1, 1934. Pending 
sixch effective date the i.iiainistrator shall appoint a Com- 
mittee of not more than three persons to investigate the 
economic and social iioplications of these provisions. Said 
Committee may make recora'nendations, based upon its investi- 
gations, and such recommendations shall, upon approval of 
the President of the Unitod States, become effective in 
the place of these provisions: 

■ "(a) ¥.0 retailer shall accept as payment for merchandise any 
non-negotiable scrip, company checks, or other evidence of 
wage payment issued by any individU5,l or private profit or- 
ga.nization in payment of wages or as an advance upon un- 
earned wages. A negotiable instrument issued by any individ- 
ual or private profit organizat. Ion in payment of wages shall 
be accepted only if it is payable in cash within one month 
of the date of issue. The paragraph shall not apply in 
cases where the cash funds of any individual or organiza- 
tion are rendered temporarily unavailable due to the closing 
''oj state or federal order of the bajilc in which such funds 
are deposited. 

"(b) Ho retailer shall extend credit in the form of goods, 
money, or services to any person other than its own em- 
ployees engaged exclusively in the retail trade, upon any 
employer's g-aarantee of part or all of said person's 
future wages, or pursuant to a wage-deduction arrangement 
entered into with said employer, unless an identical 
guarajitee of wage-deduction arrangement is available to 
all retailers. 



15224 -i- 



Section 4 as originalli^ formulated contained only suli-sec- 
tions (a) and (b) "but upon the objection of certain interested parties, 
the application of this section was stayed until March 1, 1934, pond- 
ing the recomiuendations of a Couimittee Vv'hich in the interim v/ould in- 
vestigate the economic and social iiTipli cations of these provisions. 

The Committee was appointed on March 16 and its budget was 
approved on June 23, 1934. 

The Committee excluded from its investigations plantation 
stores, government conmissaries and such non-profit organizations as 
self-help barter exchanges and scrip issued by financially distressed 
municipalities. It limited its study to Company Stores foimd in the 
mining, quarrying, liimbering, railroading and manufacturing industries. 
Of these the greatest aiiaount of attention was devoted to the Company 
Stores of the coal, textile, steel and lijjnber industries. 

Respectfully yours, 
C. B. ]?ov/ler 
H, P. Dutton 
Daniel Bloomfield 



16224 -ii- 



TABLE OF COI^TENTS 



Page 

Recoromendcitions ■ ■ 1 

Introduction ■ 3 

Conclusions 5 

Summary of Arguments Tot and Against the Credit Practices of 
Company Scrip • 7 

Origin of Company Store and Its Economic Setting 14 

Previous Investigations of the Company Store in the United 
States 18 

Legislation of the Company Store - Eoreign Countries 45 

Company Store Activity as Revealed "by Field Investigation 58 

Analysis of Qp.estionnaire 76 

Statistical Appendix 100 

List of Exhibits 101 



16224 



-111- 



List of Tables 
Table £^ 

I COMPARISON OF RETAIL PRICES OF FOOD IN COMPANY STORES 

Aira IN NEIGHBORING INDEPENDENT STORES 66 

II DISTRIBUTION OF 961 COMPANY STORES BY INDUSTRY AND BY 

STATE, 1934 78 

III PERCENTAGE DISTRIBUTION OP 961 COMPANY STORES BY TYPES 

OF STORES CLASSIFIED BY INDUSTRY, 1534 80 

lY PERCENTAGE DISTRIBUTION OF 951 COITANY STORES BY SPECI- 
FIED DISTANCES FROM INDEPENDENT STOEES , 1934 82 

V PERCENTAGE DISTRIBUTION O:^ 925 COlvCPANY STORES ACCORDING 

TO SALES MADE TO COMPANY EMPLOYEES AS PERCENTAGE OF 

TOTAL ALL SALES IN 1933 84 

VI PERCENTAGE DISTRIBUTION OF 954 COMiPAlTy STORES WITH SPECI- 
FIED PERCENTAGE OF CASH SALES TO TOTAL OF ALL SALES, 1933 85 

VII PERCENTAGE DISTRIBUTION OF 917 COMPANY STORES WITH SPECI- 

FIED- PERCENTAGE OF INSTALLMENT SALES TO TOTAL OF ALL 
SALES, 1933 86 

VIII PERCENTAGE OF NON-SCRIP-USING COMPANY STORES UGING CHARGE 

ACCOUNTS TO ALL REPORTING COMPANY STORES 90 

IX PERCENTAGE DISTRIBUTION BY INDUSTRY OF 214 NON-S CRIP -USING 

COMPANY STORES USING CHAI^GE ACCOUNTS, 1933 90 

X PERCENTAGE OF ANNUAL SALES TO COflPANY EMPLOYEES BY 812 

COMPANY STORES TO TOTAL AHFJAL PAYROLL OF PARENT COMPANIES 
IN 1933, CLASSIFIED BY INDUSTRY AND STATE 91 

XI PERCENTAGE OF THE NUMBER OF COMPANY STORES HAVING ACCESS 

TO RECORDS OF COMPANY EMPLOYEES' EARNINGS TO ALL REPORT- 
ING COMPANY STORES, CLASSIFIED BY IITOUSTRY, 1934 95 

XII RATIO OF LOSSES ON BAD ACCOUNTS PLUS EMPLOYEE RELIEF TO 

TOTAL SALES OF COMPANY STORES IN 1531, 1932 and 1933 

AND THE FIRST SIX MONTHS OP 1934 95 

XIII PERCENTAGE OP THE NUlVffiER OF COMPANY STORES NOT SUPPLYING 

CUSTOMERS WITH ANY RECORD OF PURCHASE TO TOTAL NUMBER OF 
REPORTING COMPANY STORES, 1934 S'i' 

XIV PERCENTAGE OF THE NUMBER OF STORES ISSUING SCRIP ON PAY 

DAYS TO TOTAL NUMBER OF REPORTING COt£PANY STORES, 1934 98 

XV PERCENTAGE DISTRIBUTION OF THE 951 COMPANY STORES BY THE 

LENGTH OF THE PAY PERIOD, CLASSIFIED BY INDUSTRY, 1934 99 



16224 -iv- 



Ill 



' list of T a bles (Cont'd.) 

Table Page 

XVI ..PERCEHTAGE DISTRIBUTION! OF 936 COMPMY STORES ACCOET- 

ING TO THE LEHGTK OP PERIOD EOR MICH WAGES ABE WITH- 
HELD AFTER THE CLOSE OF THE REGULAR PAY PEPJOD, 
CLASSIFIED EY n©USg:KX^..19S4.^ >.«—«—, 99 



16224 -V- 



statistical Appendix 

FOOD PEICES IK COMPAOT STOEES AM) IKDEPENDENT STORES COMPILED BY 
FIELD IWESTICxATOhS 

Table ^^^ 

1 - Comparison of Retail Prices of Poods in Company Stores and 

Independ.ent Stores in the Birmingham District 100 

2 - Comparison of Retail Prices of Foods in Company Stores and 

Independent Stores in Eastern Kentuci<y 101 

3 " Comparison of Retail Prices of Foods in Company Stores and 

Independent Stores in the South Carolina District #1 102 

4 - Comparison of Rotail Prices of Poods in Company Stores and 

Independent Stores in the South Carolina District #2 103 

5 - Comparison of Retail Prices of Foods in Company Stores and 

Independent Stores in the Eastern Tennessee District 104 

6 - Comparison of Retail Prices of Foods in Company Stores and 

Independent Stores in the Wesiiern Virginia District 105 

7 - Comparison of Retail Prices of Foods in Company Stores and 

Independent Stores in the Fairmount District in West 

Virginia 105 

8 - Comparison of Retail Prices of Foods in Company Stores and 

Independent Stores in the Southern Vfest Virginia and Pike 
County, Kentucky District ; 107 

9 - Comparison of Retail Prices of Fojds in ComiDany Stores and 

Independent Stores in the Mingo District in West Virginia 108 

COMPANY STORE STATISTICS COMPILED FROU QUESTIONIUIRE 

10 - Number rf Reporting Goimoany Stores, Ownershir) of Stores, 

Number of Exmployees in Company Stores and Parent Com- 
panies - Amount of Sales to Emnloyees of Parent Companies 
and Total Annual Payroll of Parent Company, Classified by 
Industries and States 109 

11 - Number of Reporting Company Stores, Classified According to 

Distance from the Nearest Competitors and by Industries and 
States, 1934 ' HO 

12 - Number of Reporting Company Stores, Classified According to 

Percentage of Sales Made to Emriloyee to Total Sales and by 
Industries and States, 1934 IH 

13 - Number of Reporting Company Stores, Classified According to 

Percentage of Sales Made on Installment or Lease Plan to 

Total Sales and by Industries and States, 1934 112 

16224 -vi- 



14 - Niomber of E.eporting Company Stores, Classified by Industries 

and States, According- as to Whether or Not They Use Scrip 
on or Between Fay Days, Make Charge Accounts, Have Access 
to Record of Employees' Earnings and Supply Employees with 
Records of Purchases 113 

15 - Kiomber of Reporting Company Stores, Classified According 

to the Percentage of Cash Saler to Total Sales and hy 
Industries and States, 1934 114 

15 - Amount of Bad Dehts and Employee Relief and Total Sales cf 
Company Stores, Classified by Industries and States, 
Annually 1931-1933, Semi -Annually , 1934 115 

17 - Number of Reporting Company Stores, Classified By Industries 
and States According to the Length of Pay Period of Parent 
Companies and the Kumber of Days for Vfliich Wages are With- 
held by the Parent Companies After the Reg^j-lar Pay Period, 
1934 118 

QUSSTIOMAIRE EORLl ~ ■— 117 



16224 -vii- 



THE ECONOMIC AKD SOCIAL IMPLICATIONS .OF . 
.;• ,:.. ■. THE .COMPAI^TY STORE AND /.S CRIP SYSTEM 

P.ecommpndations 

- The. Committee on Company Scrip makes the tv/o following 
groups of recommendations. The first group relates specifically 
to Article IX, Section 4 of the Code of Pair Competition for the 
Retail Trade as approved on October 21, 1933. The second group 
is supplementary in character, designed to carry out the spirit 
of the first grouo and to indicate some considerations involved 
in correcting some of the evils which now exist in connection with 
the company store and scrip system. 

I 

(1) The Committee recommends the> elimination of Article IX 
Section 4 of the Code of-Fair Competition for the Retail Trade. 

(2) The Committee recommends that the following provisions he 

made a part of. the code in place of the eliminated section. 

No company stpre or retail store shall collect "by 
offset in the form of scrip, hook credit or other- 
wise, against the wages of any person other than 
its own employees engaged exclusively in the retail 
trade, an amoijnt for merchandise sold hy said store 
in excess of 25 per cent of such pay earned in any 
pay period. 1./ 

No store shall purchase or receive jr accept for , . 
cash or consideration in trade or in payment of 'in- 
debtedness any scrip at less than its par or face 
value . 

ij The Committee is aware of the fact that an immediate apiolica- 
tion of this provision might interfere with some of the exist- 
ing collective wage agreements and the Committee feels that 
this fact should be taken into considerations by the Administra- 
tion. A possible solution of this difficulty vrould be to exempt 
such existing agreements from this provision. 

16224-1 



Presumably the atove -recommendations will apply to other ^~ 
codes which contain provisions- similar to Article IX, Section 4 of 
the Retail Code. 2/ 

II 

The Committee's consideration of the economic and social 
implications of the company store and scrip system indicates that 
the effective correction of such evils as exist cannot he fully 
achieved under the Retail Code. It therefore suggests for the con- 
sideration of the Administration the following additional recommenda^- 
tions. 

(1) The Committee recommends that regulations be designed to 
insure that the worker receive a reasonable portion of his wages in 
cash on each pay day. 

(2) The Committee recommends that, as soon as may be practic- 
able, regulations be designed to limit the pay period to one week 
and to limit pay hold-backs to a maximijra of one week 

(3) The Committee recommends that regulations be designed to 
prohibit any employer of labor from requiring an employee to trade 
at the company store. 

(4) Tlie Committee recommends that regulations be designed to 
prohibit the payment of wages due in any fonn other than lawful 
money or par checks. 



2/ For instance, Article IX, Section 3 of the Code of Fair Competi- 
tion for the Retail Food and G-ro eery Trade and Article VIII, Sec- 
tion 4 of the Code of Fair Competition for the Jewelry Trade. 



16S24-2 



I nt r duc t iff u 

The distiuguishinj feature of the company st'^re is it3 
exclusive right of collecting the money owed to it by its customers 
by deducting such ohli^^ations from the nayroll of the so-called 
"operating" company. The company. store may be a department of the 
operating comDany, it may be a subsidiary or it may be an independent 
storerwhich has made a wage deduction agreement with the ooerating 
company. 

The following is a briff summary of the usual credit 
practices of the comr,aiiy store: 

A worker who desires credit from the company store will 
make an application t;o the bookkee-per or store manager. Such ad- 
vances are usually made only against wages already earned by the 
employee but not due him -"jxitil the next pay day. The store repre- 
sentative usually ascertains from the operating companj^ the amount 
of unassi.-^ned wages against which credit may be issue.i. During 
periods of temporary unemployment, or in case of individual emer- 
gency such as illness in the family, credit is sometimes given 
against future or unearned wages, Ai/ances of this character may 
be made either by the store or by the operating company. 

After the amount of the advance is settled and the employee 
has made an assignment rf his wages he is given the advance in the 
form of a book of coupons, a card with amounts to be -ounched out, 
metal tokens or in the form of b>coK credit. Commonly this scrip is 
redeemable only in merchandise^ althov^^h in some cases it may De re- 
deemed in cash if Dresentcd at icme future date, by the original holder. 



16224-3 



In the attempt to appraise the merits of the case, the 
Committee held formal puhlic hearings in Birmingham, Alabama on 
July 2, 1934 and informal hearings in Pittshnrgh, Pennsylvania on 
April 28 and 29, 1934, and in Washington, D. C. on.Augu.st 27, 
September 14 and 28, and October 13 and 20, 1934. Each member of 
the Committee has personally visited and investigated one or more 
of the regions affected and a field investigator has gathered 
further data. Investigators have also analyzed the reports of previ- 
ous investigations and of legislation by various states and by foreign 
countries* Some 22 formal briefs, 19 petitions, 1,575 questionnaires, 
many affidavits and over 150 letters liave been received and considered 
and many interviews have been had with independent and company store- 
keepers, employers, labor representatives, social workers, business 
men and others. 



16224-4 



Conclusions 

' ■ - . . ' ■ i 
As a result of its study, the Committee lias come to the 

conclusions which are G\ammarizcd as follows: 

(1) Most of the complaints now voiced by the critics of the 
company store system in this country are of long standing, dating 
back at least 75 years. 

(2) The inclusion of Article IX, Section 4 in the Code for 
the Retail Trade and the identical provision in other codes, 
recognizes the intrrest of the independent merchant in a matter 
formerly regarded as chiefly the concern of emoloyer and emDloyee. 
This inclusion was at the instance of a groui:^ of merchants in 
Birmingham, Alabama. Outside of this group, the Committee found 
little evidence of an organized or a widespread protest on the part 
of independent retailors. 

(3) Geographical isolation, which was an influencing factor 

in the original establishment of the company store, is no longer an 
important consideration, except in a few cases. 

(4) The Committee fo-und but few cases of direct and indirect 
;^ressure being exerted on the employees to trade at the company 
store. 

(5) The economic status of many employees forces them to seek 
srcdit. The extension of credit by the employer under a charge over 
payroll arrangement, obliges these employees to patronize the company 
store. 



16224-5 



(6) The widespread practice of holding 'back the enrployee's 
wage for one pay period, varying generally from one to two weeks, 
renders it difficult for the employee to get out of deht and to "be 
on a cash basis. 

(7) In the typical case 90 to 100 per cent of the company 
store "business is done with the employees of the operating companj'', 
and 90 to 95 per cent of this huciness is done on some form of 
credit. 

(8) Company stores sell goods and render services eq.ual in 
quality compared to those offered hy the independent stores. 

(9) Food prices in the company store are on the average from 
2.1 per cent to 10.4 per cent hi{:jher than similar prices in neigh- 
boring independent stores. 

(10) Company stores generally have an advantage in location 
over their nearby competitors. 

(11) The emergency relief extended by the company stores is 
conventionally in the form of credit advances. The losses from 
bad accounts thus or othervidse accumulated by the company stores 
have amounted on the average to 1.1 per cent of the total sales of 
the stores during the past 3-J years. 

(12) The practice of the company store of discounting its own 
scrip for cash is no longer a common practice. 

(13) The practice of discounting scrip for cash by merchants 
and other members of the community is widespread. The rate of dis- 
count varies from 10 to 30 per cent. 



15224-6 



Summary of A.v^;\iments .I'], ^ .^ and A^a^nst the 
Credit Practices of Comp^Jiy- Sp.rjx. ,^ 

The arguments advanced against the present credit system 
of the company store are as follows: 

(1) Employees who do not patronize the company stores are dis- 
criminated against or threatened with such discrimination in connec- 
tion with assignment of work, lay-offs and discharge. 

(2) Prices in c6mpg.ny stores are higher than prices in independent 
stores and by this means the employer reduces the real wage to the 
employee, 

■(3) In cases where direct pressure is not exerted to force the 
employee to trade at the company store, the necessary assignment of 
the employee's wages and the lack of cash makes it impossihle for him 
to secure cr-^dit elsewhere. Thus the employee is deprived of an 
opportunity to trade with other stores in which prices are^ lower. 

(4) In Gome cases the employer deliberately endeavors to keep 
the employee in debt to the company st^re by such means as maintain- 
ing a larger labor force than is necessary and by limiting the amount 
of work assigned to each employee. Such practices keep the income 

of the worker so low that ho must seek credit at' the pompany store. 

(5) The exclusive privilege cf collection over payroll gives 
the company store a monopolistic and unfair advantage over the inde- 
pendent store. 



16224-7 



(5) Company store practices tend to cause the worker to re- 
main improvident, and shift the-, responsibility of budgeting the 
family income from the housewife to the store manager. 

(7) The company store fosters a system of economic peonage 
which is in conflict with the ideals of a free people. *■ ' • ■ 

The arguments advanced in favor of the credit system of 
the company store are as follows: 

(1) Many of the abuses which may have existed in the past no 
longer exist, or ate found only in rare instances. 

(2) Because of risks involved, independent merchants cannot 
afford to extend credit to the workers in adeq.uate amount. Company 
stores can malce credit advances practically without risk of loss, 
since most of the advances are secured by assignment of earned wages* 

(3) The security of the wage assignment enables the employer 
without undue risk or loss, to make advances to employees during 
periods of illness or unemployment or other emergencies and thus 
prevents such employees from becoming public charges. 

(4) Many employees are improvident. The system by which they 
hypothecate their wages in return for food and necessities, protects 
the employee and his family from extravagance, loan sharks,' credit 
and installment peddlers aind others who might' otherwise exploit him, 

(5) The credit system aids the employee to budget his own e:&- 
penses. 

(6) Scrip is a convenience for the employees. It simplifies 
bookkeeping and avoids disputes. 



16224-8 



(7) The company store protects eraployees from exorTaitant 
charges which in remote conuminities might otherwise he inrposed 
upon him hy independent merchants of the less responsihle type. 

(8) The use of scrip is a custom of long standing to which 
the employee has hecome hahituated and to which he has adjusted 
his economic habits. Depriving him of this customary recourse 
would work widespread hardship and create general resentment. 

(3) The profits of the qorapany store enable the employer to 
pay better wages, '-.■■., ^ ... 

(10) The comoany store frequently was started from a service 
motive by enployers in remote eoEBnunities dealing y/ith employees . 
unaccustomed to industrial life. Many of the stores are operated 
from the service motive at nominal profits; a, few stores even return 
all profits to eroployee customers. •. . v' ■ .^ 

(11) The 'company ^store makes a practice of buying from local 
producers and encouraging farmers and local ii^dus tries. 

(12) The credit system reduces the risk of robbery or burglary 
by reducing the necessity for carrying large. amounts of cash in the 
store or office. • ' 

In addition to the generg-l questions as to the effect of. 
the charge over payroll credit systepi, it was necessary for the Com- 
mittee to consider specifically the effect of Article IX, Section 4 
of»tlte Code of Fair Competition, for the Eetail Trade. Paragraph (a) 
of ■Qais section provides that no retailer shall accept as payment for 
merchandise any non-negotiable scrip or scrip payable in cash within 
one month of date of issue regardless of who presents it for redemp- 
tion. 

16224-9 



ArgTjments advanced in favor of the retention and enforce- 
ment of this provision are as follows': ■ 

(1) Hon-negotiatle scrip, as Issued at the present time, has 
the effect of forcing the employee to trade at the company store. 

(2) Scrip which may he accepted "by any merchant would enahle 
the employee to trade to his best advantage. 

(3) negotiable scrip would destroy the monopoly position of the 
company store and promote fair competition. 

(4) Negotiable scrip, since it has wide acceptability, would 
eliminate the discounting abuse common with non-negotiable scrip, 

(5) The effect of paragraph (a) would be to abolish the use 
of scrip, :- .. 

The arguments advanced Against the retention of paragraph 
(a) of Section 4 are as follows: 

'(1) The laws of several states prohibits the issuance of nego~ 
tiable scrip and to permit negotiability these laws would have to be 
changed. 

(2) One of the most common difficulties in the use of scrip 
arises from its being discounted by the employees among themselves, 

by independent merchants and others. The requirement of negotiability 
would tend to intensify this evil. 

(3) The employer or store may refuse to redeem non-negotiable 
scrip, except from the original holder. Were scrip made negotiable, 
and its redemption in cash on presentation within one month of date 
of issue required, 



16224-10 



(a) The store would lose any present control 
over the counterfeiting of scrip. 

(■fa) The scrip would in effect hecome the 

"money" of inany comrnonities. The laws of 
some states prohibit the issuance of paper 
of this character and the replacement of 
currency hy such local media is undesirable. 

(c) The employer would in effect he required 
to finance the. credit extended "by indepen- 
dent mercliants. 

(d) A..large investment in present scrip, tokens, 
hoolckeeping systems and the like, would he 
rendered valueless and many "businesses rely- 
ing upon the customary use of scrip would 

he injured or destroyed. 

Paragraph (h) of Article IX, Section 4 of the Code provides 
that if the coiapany store avails itself of the privilege of deducting 
money owed to it from the payroll of the operating company, then all 
other retailers must he permitted to make similar deductions from the 
payroll. 

Arguments advanced in favor of tie retention of this provi- 
sion in the code are as follows: 

(1) If all stores v/ere permitted the same opportunity to make de- 
ductions against the payroll, the employee would have an opportunity 
of trading at stores other than the company stores. Conipetition would 
he encouraged, the independent store and eirployee would hoth he bene- 
fitted. 

(2) The necessity of opening the privilege of collection over 
payroll to outsiders if used liy the company store itself would deter 
the conipany store from continuing the practice and in this way increase 
coripetition and benefit the eiiiployee. 



16224-11 



(3) The extension of the privilege of collection over payroll 
to outsiders, or tne restriction of the practice oy making it un- 
profitatle for the company store to continue such practice, would 
result in the employee establishing outside contacts and credits 
to nis advantage. 

The; arguments against the. inclusion of this provision in 
the code are as follows: 

(1) Payment in script of wages is already fo.rhidden in such 
codes as .that for the Coal Industry and by the laws of several states; 
the practice is uncommon at present. , .. 

(2) Advances against earned or unearned wages are made volun- 
tarily by the employer at the request of the employee. If conditions 
were attached to making , such advances which the employer regarded as 
unfair or contrary to his interest he could and would refuse to make 
such advances. The effect would be to force the employee to resort 
to expensive and injurious sources of credit. 

(3) It would be impracticable to extend tne privilege of off- 
set against, payroll to an indefinite number of merchants. The em- 
ployee, frequently an illiterate or inexperienced person, would assign 
his. wages indiscriminately and both he and tiie employer would be in- 
volved in garnishee suits and other difficulties. The employer would 
have to have available, at all times, funds sufficient to meet an un- 
ascertainable demand for redemption, and large enough to invite hold- 
up or to'^^'- 



16224-12 



Finally, it is asserted with regard to both paragraph (a) 
and (h) that, regardless of the merits of the controversy, a change 
at the present time and by the proposed regalations is inadvisable 
for (the followiBg reasons: 

(1) If abuses exist in the present practi-oes of the conpany 
store, they should be corrected thrcmgh the codes of the operating 
industries concerned, rather than by indirection through the Setail 
Codes. 

(2) The extension of tlie National Industrial Recovery Act, beyond 
its present e:cpiring date, is not a foregone conclusion. Extensive 
changes and dislocations v/hich may not prove permanent should not be 
forced on industry. 

(3) S^ach attempts to regulate the company store will tend to 
decrease einployment of the conipany store worl:ers without a corres- 
pendent increase in the number employed by independent retailers. 

(4) At a period in which, after mach costly dispute .and difficult 
negotiation, working agreements have been reached between employer 

and employee groups, only the weightiest considerations of public bene- 
fit could justify the risk of a new disturbance of relations between 
these groups. 

(5) It is a serious responsibility to initiate clianges in social 
policy, the effects of which cannot be determined, and which entail a 
serious and unescapable cost to e stablished industries. . 



15224-13 



Ori^gin of Corma&ny Store and its 3conomic SettinjS; 

The history of coinpany stores or industrial commissaries 
in this country is intimately linked with the history of our extrac- 
tive industries and tiie rievelopment of tne railroads and of the south- 
ern textile industry. 

Although the centers of population moved rapidly westward 
during the century preceding 1930, nevertheless vast sections of the 
country were left witii a sparse population and more or less isolated 
from thickly settled regions. Many of our richest mineral resources 
were found in these isolated and often mountainous regions, and they 
could be developed only "by business men willing to furnish labor with 
houses and necessary provisions. 

The oldest bitTiminous coal fields in this country developed 
during the last two decades of the nineteenth century are in the cen- 
tral competitive field which embraces western Pennsylvania, and the 
states of Ohio, Indiana, and Illinois. Many of the early mines in 
these states were located in wnat at that time were remote reg'^ons, 
just as they are in some of the newer fields today. This necessi- 
tated the construction of company communities in which the coal cor- 
poration built the nouses for the miners, set up company stores, and 
provided all of the other necessary services for the working popula- 
tion. Conditions in tne older coal mining fields were notably poor 
before 189B. 

In the decade that followed 1900, however, many changes 
took place in tne older bituminous coal fields. Labor relations 



16224-14 



were placed on a -1111x011 "basis, settlements in and arotind the coal 
"patches" grew in size, conipanj'' liouses, company ' stores, and com- 
pany-controlled cOuiainities in general disappeared. Mining towns 
and hamlets 136081116 integrated in inany respects with the surrounding 
coimionities. 

Dtiring the first two decades of the twentieth century 
nevi bituminotis coal fields were developed in the great crescent ly- 
ing aro-und. the Eastern, Southern, and Western houndries of the old- 
er fields. The states of Maryland, West Virginia, VTrginia, Zentucl-cy, 
Tennessee, Alahama, Arkansas, and Colorado contain rich coal deposits 
in their more mountainous sections. The early development of -the 
coal industry in' these states has paralleled the early development in 
the older states with two chief differences. First, the new coal re- 
gions are more mountainous and isolated from large settlements than 
was the case in the older fields. Second, many large industrial cor- 
porations opened up "captive" mines in the new regions and huilt coia- 
pany towns on a greater scale than formerly. 

Later relations in the newer coal fields were until recently 
maintained on a non-union "basis. The coal companies usually furnished 
all of the services needed by the community including con^jany stores, 
and often held absolute control over both its mining operation and the com- 
raonity. The company store problem is centered in these regions and 
in many cases still persist because of the isolation of the conE-iunity 
and for other reasons. The isolation argument in the newer fields is 
■ becoming less valid as the coal "patches" are rapidly integrating 
their services with fee services of larger communities near by. 



16224-15 



The l-umlDer industry is widely scattered, and much of it is 
located in remote sections of tne country far removed from the main 
lines of traffic. Saw' milling and logging operations extend all the 
way from Maine to Washington, and from the gulf states to the lakes. 
Company-controlled communities are common, with the company store as 
the center of the community. 

Labor relations have caused mucn trouble in' the great log- 
ging camps of the South and Northwest. Commissaries have been one of 
the points of friction' in that labor often resented the idea of being 
forced to trade at the company store. Because of the -very nature of 
the industry, it will be a long time before many lumber operations 
are likely to be accommodated by independent retailers. 

What has been said concerning the coal and lumber Indiis-' 
tries can also be said of the iron ore and quarrying industries. ■ '-■ 
Mining operations carried' on in isolated regions result in company- 
controlled commranities. 

> 

Many gf our railroad- Companies operate in remote' and iso- 
lated regions and a considerable part of their labor force is transi- 
ent •■ The companies have for many years provided commissaries for their 
labor force. However, the railroad commissary usually operates on a 
different basis from the regular company store. The chief function 
of railroad commissaries seems to be to provide eating places for .tran- 
sient labor. A comparatively few of these sell goods to the family 
of the workman, as ^he family usually resides along the read. The two 
historical reasons for railway commissaries are isolation and transi- 
ent nature .of railway labor, • ■ .' 



16324-16 



Similar conditions obtain in public construction executed 
"by private contractors. 

ChBtap lator, lev; taxes, and cheap rents in the South v/ere 
among the reasons for the early development of the southern textile 
industry, Oihese advfjitnges could only he attained, however, by locat- 
ing the mills in isolated regions along the foothills of the moun- 
tains of the Carolinas. Cheap farm labor resided in these regions 
and the factory has to be located near by. Mill villages were con*, 
structed and the textile companies usually furnished all of the 
community services. - 



16224-17 



Previous Investigations of the " 
Company Store in the United States 

As early as 1649 low wages and complaints against the 
company store led to a strike and to the o'rg&nization of a union in 
the anthracite coal region of Pennsylvania. !_/ In 1881 the "aho- 
lition of the 'truck' and 'order' system" was an item in the platform 
of_a disaffected group of the Knights of Labor who met in Terre Haute, 
Indiana, to establish a rival order. 2/ According to &. S. Mitchell, 37 
the complaint against company stores lent impetus to the organizing 
activities of the Knights of Labor in the South. The Commissioner of 
Labor and Printing of Nortn Carolina, in his report for 1887 quotes 
from a letter from a mill employee, complaining of the practice of dis- 
counting its scrip by the company store and of the limitation of the 
employee's trade to the company store by the payment of wages in trade 
checks, good only in merchandise .4/ 

The realization of a need to control the issuance of scrip 
and the practices of the company store is reflected in the passage of 
regulatory or prohibitory legislation by a number of states. " 

In 1868 a regulatory statute v;as enacted .by the State of 
Maryland. In 1874 the Pennsylvania Legislature passed a statute 



1. History of the United Mine Workers of America , Chris Evans, 1918, 
p. 5. 

2. History of Labors in the United States , J. H. Commons and others, 
1918, Vol. II, pp. 318 and 324. 

3. Textile Unionism & the South . G. S. Mitchell, 1931, p. 5. 

4. Quoted by J. J. Rhyne in Some Southern Cotton Mill Tforkers and 
their Villages , 1930, pp. 22-24. 



16224-18 



attempting to control the payment of wages, the use of scrip, and the 
•oractices of the company store in the coal mining industry. In the 
decade of the eighties, twelve states, including among others, the 
Carolinas, Tennessee, West Virginia, Ohio, Kansas, and Washington, en- 
acted somewhat similar legislation. In many instances this legisla~ 
tion was so poorly drawn that it could be easily circumvented or invali- 
dated on constitutional ^cunds. 

At the present time there are 32 states which have law^ relat- 
ing to company stores on scrip. In 17 of the states the use of co- 
ercion hy employers to force eroployees to trade at corjpany stores is 
prohihited. (Arizona, Arkansas, California, Florida, Indiana, Iqwa, 
Kentucky, Louisiana, New Jersey, Hew Mexico, Ohio, Oregon, South Caro- 
lina, Tennessee, Texas, Utah, West Virginia.) 

Five states have provisions as to the prices diarged for goods 
"by company stores. These statutes prohihit the sale of goods "by com- 
pany stores "at prices higher than a reasonable or current market value 
for cash" (Arkansas) or "at a greater sum than is a reasonable price 
therefor in the town or city where such sales are made" (Connecticut.) 
Somewliat similar provisions are found in the laws of Indiana, Ohio, and 
Virginia. 

Six states prohibit discounts on scrip. (California, Connecticul 
Illinois, Mississippi, Oregon, Washington.) 

In Colorado_/ the use of " trudc system" payment, in whole or 
part of wages of any employee is forbidden. "Truck systeri' is defined 



1/ United States Bureau of Labor Statistics, Labor Laws of the U.S ., 1925, 
p. 234-235. 



16224-19 



by this statute as follows: 

(1) Any agreement, method, means or Txnder standing, used 
or employed by an employer, directly or indirectly, 
to require his employee to waive the payment of his 
wages in lawful money of the United States, and to 
take the same, or any part thereof, in goods, wares, 
or merchandise, belonging to the employer oi- any 
otner person or corporation. 

/ 
■■ (2) Any condition in the contract of employment between 

employer and employee, direct or indirect, or any 

understanding wnatsoever, expressed or implied, that 

the wages of the employee, or any part thereof, shall 

be spent in any particular place or in any particular 

manner. 

(3) Any requirement or understanding whatsoever, by the 
employer with the employee that docs not permit the 
employee to purchase the necessaries of life where 
and of wnom he likes, without interference, coercion, 
let or hindrance. 

(4) To charge the employee interest, discount or other 
thing whatsoever for money advanced on his wages, 
earned or to be earned, where the pay days of the 
employer are at unreasonable intervals of time. 

(5) Any and all arrangements, means or methods, by which 
any person, company or corporation, shall issue any 
truck order, scrip, or other writing whatsoever, by 
means whereof the maker thereof may charge the amoTint 
thereof to the employer of laboring men so receiving 
such' truck order, scrip or other writing, with the 
understanding that such employer shall charge the same 
to his employee and deduct the same from his wages. 

In Maryland !_/ company stores are forbidden to railroads or 
mining companies formed or organized in tnat state. But employees «f 
a corporation may form cooperative stores. California 2/ pro- 
hibits scrip "redeemable otherwise than in meney." 

The laws in the other states vary as to negotiability or 
non-negotiability of scrip. In six states scrip is made non-negoti- 



1. Pub. Gen. Laws. Code af 1911 Act 23, Sect. 311. 

2. Statutes of 1915. 



16224-20 



alile, that is, only scrip presented for the redemption hy the original 
holder may be honored: (Alabama, Kentucky, Mississippi, Oklahoma, 
Virginia, and Ufest Virginia.) 

Other states which have laws relative to scrip and company 
stores are: Georgia, Kansas, Michigan, New York, North Carolina, Penn- 
sylvania, Arizona, Arkansas, Illinois, Iowa, and New Mexico. 

The practices of the company store have been touched upon in 
repeated investigations by commissions or agencies of the Federal Govern- 
ment. Among these may be mentioned the following: 

'( 1 ) A report on Capital and Labor Sm p loyed in the 
Mining In dustry, by the U. S. Industrial Com- 
mission in 1901 contains evidence on the com- 
pany store system, including an investigation 
of its use in western mines. 

(3) Reports on imraigrants in Industry , in 1908, by 
the United States Commission comments on the 
commissary system in the South. 

(3) A report was made on Con ditions of Employment 
in the Iron and Steel Industry , by the U. S. 
Commissioner of Labor, the field investigations 
being made in 1910 and the report published 
during l3ll-13. ' 

(4) The majority and minority reports of the United 
States Bituirdnous Coal Commission in 1920, touch 
on the subject. 

(5) Perhaps the most comprehensive and authoritative 
report on the company store is that of a committee 
appointed in 1932 by Congress, to examine the 
various aspects of the situation faced by the 
coal industry, and published as Senate Document 
195, 60th. Congress, 2nd. Session. 

(5) A Sub-Committee of a Senate Committee was appointed 
in 1928 to "investigate conditions in the coal 
fields of Pennsylvania, West Virginia, and Ohio," 
and reported many first-hand interviews in S. Res. 
105, 70th. Congress, 1st. Session. 

(7) The Davis-Kelly Bill on which hearings were held in 
1932, dealt with the company store. 



16224-21, 



(8) Hearings held during May, 1932, by a Sub-Com- 
mittee of the Senate Committee on Manufactures ', :. 
bring out conditions in tne coal field of Harlen and 
Bell counties, Kentucky. (United States Senate. 
Hearings in 3. Hes. 178, 72:1, pp. 17-18.) 



Prom these vsrious G-overnment reports, and from private 
investigations and studies, it is possible to obtain something of 
a historical perspective concerning the antecedents of the present 
controversy. These sources reveal the persistence of certain is- 
sues and the gradual mitigation of others as geographical isolation 
was counteracted oy better communication, and as public opinion changed. 
Of the various changes made against the company store, virtually all, 
except that of unfair competition with retailers-, appear in preceding 
investigations. 

It will be helpful to quote from the findings of previous 
investigations, bearing in mind that the existence of an objectionable 
practice in the past does not necessarily constitute proof of its sur- 
vival; the findings of the Committee (p. ) constitute its appraisal 
of the conditions as they novi' exist. • , ,. 

The report of the Industrial Commission (No. 1 in the pre- 
ceding list) refers to the high profits earned by company stores, com- 
pulsion to patronize these stores, exclusion of independent merchants, 
and the effect of growth of population'; and off unionization in con- 
tributing to the decay of the company store system.. The quotation 
fallows: !_/ 



1/ Vol. XII, 1901, pp.'XXVII-iaVIII. 



16224-22 



"It is claimed on the part of the operators that the 
establishment of company stores is necessary "because 
mines are opened in isolatad places, where supplies could 
not otherwise he obtained. It is admitted "by the miners 
that this is sometimes true. It is maintained, however, 
that such cases are exceptional, and that in almost all 
cases the necessity is temporary. The real reason for 
the maintenance of the company store system is declared 
to "be the great profit that it brings. Prices are al- 
leged to be 15 per cent, 25 per cent, even 30 and 35 per 
cent higher tlian in other stores. The isolated charac- 
ter of many of the mining, villages is mentioned as a jus- 
tification for somewhat high prices. It is alleged, hov;- 
ever, that miners are compelled to deal with the company 
stores, both by refusal, of employment otherwise and by 
the barring out of other sellers. Often it is stated, 
the mining company owning the land where the town stands , 
refuses to admit any store but its own. Even when an 
outsider is permitted to establish a store, the company 
sometimes demands a percentage on his sales. In one in- 
stance peddlers and delivery wagons are alleged to have 
been prohibited from going near the company houses. 

"Two influences are mentioned as contributing most power- 
fully to the decay of the company store system — growth of 
population and the consequent increase of trading facili- 
ties, and the growth of labor organizations. In most 
parts of the country the system appears greatly to have 
declined. All testimony agrees that it still flourishes 
undiminished in West Virginia, where the organization of 
the miners has little foothold. A lest Virginia opera- 
tor, who savs that he knows of no operators who do not 
have company stores, asserts at the same time that pri- 
ces are not excessive and that miners are free to deal 
elsewhere if they please. He admits, however, that the 
miners' organizations protest against the prices." 

That the institution was not restricted to the eastern coal 

fields is evident from a digest of the "testimony on labor in western 

mines printed in the same volume. There it is recorded that: 

"Mr. Smith, Deputy Labor Commissioner, implies that corapan 
Stores in Colorado are chiefly found in connection with 
the coal mines. He believes that they compel the employee 
to pay much more for the necessities of life than would 
otherwise be the case. Although usually there is no abso- 
lute order that men must deal at the company store, those 
who do not are discriminated against in various ways. Com- 
pany stores also sometimes give those who own them an ad- 
vantage in competition with other producers." ]J 



T] Qr). Cit . v->. 217-18 



16224-23. 



In Volume VII of this report dealing with conditions of 

labor in man\ifactures and general /business, evidence was introduced 

to, the effect that the company store arrangement was used in the New 

Jersey glass industry. It is reported in the digest for this volume 

that: 

"Mr, Wright, United States Commissioner of Labor, says 
that it might be very advantageous for employers to run 
stores to supply goods to their wo rkingraen if these 
stores were properly conducted so that they might fur- 
nish goods at cost plus the mere expense of handling. 
This was formerly the policy of the Williraantic Thread 
Company, and at present the United States War Depart- 
ment carries on practically the sajne system for supply- 
ing goods to the officers' families. But the company 
store is a dangerous' thing unless the employer is an 
angel. The tendency is to stock' such stores with cheap 
goods and to maintain high prices. Often the owners 
of these stores, by recouping their losses in produc- 
tion through profits on goods, can compete unfairly 
against other producers. The worst fault in the sys- 
tem is the unwritten threat to discharge the employee 
who fails to trade at the company store." i/ 

The next official report is that included in the Reports 
on Immigrants in Industry xmdertaken by the United States Commission 
»f Immigration during 1908 (No, 2 in the foregoing list.). Field in- 
vestigations were made in the Pennsylvania, Middle Western, South- 
western, and Southern bituminous coal fields. The employees covered 
by this study constituted 21,8 per cent of all employees engaged in 
these coal fields. 

The general conclusion of the .Commission on the operation 
of company stores in these areas follows in part: 

1/ Op. Git ., pp. 34-35. 



15224-24 



"In isolated comraimities, where the 'company store' 
is the only avai?>.a'ble place for the employee to make 
his purchases, it has "been charged that the prices at 
the store v/ore to" higii and that stock of an inferior 
quality was carried. Ir. the najorlty of oases, liow- 
ever, the reverse, is true, the employee "being ahle to 
secure from the coraitixiy store as good, if not "better, 
articles for the same or a lesc price tha:i.i v/ould he 
charged "by an independont store. 'For the convenience 
of tile employees, 'checks' rarely in ex:ce3s of fne wages 
due, and good only- at the com;:/a,n7 a tore, are furnished 
"between pay days oy the compaiv Many of the companies 
issued store hooks to t'lie employees, the items purchased 
being recorded, and deductions for th^se items, as in 
the case of the checks, are ma-de from the wages of the 
employee on pay day. 

"It is maintained that patronage of the company store 
is not compulsory'-, "but the system of paj'-ing wages does 
not hear out this contention. This applies more or less 
to all localities. In the Soiithwest the miners are com- 
pelled to purchase their powder and other explosives 
from the stores only. In the Middle West a.nd South 
patronage is said to he not compulsory; at the same 
"time, when only scrip or store orders are o"btainahle 
hetwcen pay days, and these scrip or store orders are 
good only at company stores, it is apparent that pa- 
tronage is practically compul;:ory. The same policy in 
making deductions is followed in all localities. Out- 
side of Pennsylvania, however, t"iie mining company either 
owns and operates the store or has an agreement with some 
individual whare"by the scrip or store order is honored, 
the amount to he deducted from the wages, as in cases 
previously cited." 1/ 

Hans'" immigrants at this time were attracted to the iron and 

steel manufacturing industry, and accordingly an investigation of 

working conditions in this industry was undertaken. Only in the 

southern branch of this industry were company stores found in large 

numbers. The Commission's findings on the mode of operation of these 

stores are as follows : 

"The system of commiissaries is practically universal 
in all of the mining comnrcmities and in the iron and 
steel plsoit communities. The mines are usually iso- 

T/ "United States Commission of Immigration, Report on Immigrants i n 
Industry, Part I, pp. 95-95, 1910. 



16224-25. 



"lated enoiigh to warrant the location of a commissary 
for supplies of all kinds, while the steel plants em- 
ploy a sufficient number of men to justify the main- 
tenance of company stores. The small pla.nts within 
the limits of the city of Birmingham, such as machine 
shops, frog and switch plants, cast-iron foundries, and 
the like, neither own company houses nor operate com.- 
missaries, hut as a general rule whenever a company em- 
ploys a sxifficient numher of workers, or is isolated 
enough from the residence sections of the city to war- 
rant the owning and the renting of company houses, the 
commissary system is also one of its features. 

"While the commissaries themselves are operated in a 
manner which may he justly considered efficient, much 
of the patronage is induced hy the methods of wage pay- 
ments. As pointed out in another section, the system 
of commissarjr checks and commissary credit is practically 
universal wherever the company maintains a commissary. 
The great majority of wage-payment periods are monthly. 

"On pay days alone are payments made in currency; at any 
time "between the pay days payments are made in the form 
of either — (l) commissary checks, whose face value ex- 
pressed in dollars or cents represent the 'time' or 
currency wages due the employee; or (2) store credit;, 
wherehy the employee may deal directly with the store 
to the extent which his credit for wages on the com- 
pany hooks allow him. In nearly all companies indi- 
vidual employees having good records for financial re- 
liability and steadiness may overdraw their credit at 
the commissaries within certain limits in time and 
amount, hoth under the store credit system or the com- 
missary check system, 

"The effect of this policy is to encourage, and,, in 
many instances, to have the effect of com.pelling em- 
ployees to deal with the commissaries. In fact, ac- 
cording to the statements of some of the small opera^ 
tors, commissaries as a rule return not only a 20 per 
cent net profit in normal times to the company, but the 
system goes so far as to largely determine the race of 
employees. In certain cases it was stated that negroes 
were preferred because their improvident habits pre- 
vented them from being able to live on cash incomes paid 
monthly and thus force them to draw their wages weekly, 
and even daily, in the form of commissary checks or store 
credits. Currency paj^nents were made monthly partly for 
this purpose. As a result, the negroes are always a lit- 
tle in debt to the commissaries;: they are rarely the pos- 
sessor of any currency, and stay in the employ of one 



16224-25 



"compai;iy as long as their employers will allow them. 
• ■> Their wants are, confined to the supply of goods fur- 

nished hy the commissaries, with the exception of 
whislsy, and they have no funds for any other purpose 
than that of hare suhsistenee. Exceptions to this gen- 
■ erally improvident class of course were found. For the 
same reason these employers do not encourage immigrant 
■ • laborers , and in some cases refuse to employ them alto- 
gether. The imrni,f;;rant exhibits a strong tendency to 
get his wages in cash and to live on the lowest level 
possible to maintain subsistence. He patronizes not 
only as few stores as he can, and as little as he can, 
but he seeks the cheapest places, and seeks for them 
first among the merchants of his own race. It is only 
when he becomes ijiiericaniaed in his expenditures that 
he is a profitable employee from the standpoint of the _ 
commissary owner." !_/ 

The following quotation from the report expresses the find- 
ings regarding profits: 

"The fact seems to be that a well-managed store will 
yield a very good profit and it is the intention of 
the members of the coal-mining companies to retain 
this profit for themselves. 

"They have few or no bad debts and consequently are 
able to make more than the average profit at moderate 
prices. 2/ 

"It was stated by a number of employers, however, that 
the companies operated their commissaries with the ex- 
pectation of making about a 20 per cent profit, and it 
was .f^orther stated that negroes were considered cheaper 
laborers because they showed a decided tendency to spend 
all they made in purchases at the company stores. 3./ 

"In fact, according to the statements of some of the 
small operators, commissaries as a rule, return not 
only a 30 per cent net profit, in normal times to the 
company, but the system goes so far as to largely deter- 
mine the, race of employees. 4/ 

l/ Op. Cit .. Fart II, pp.. 189-91 

2/ Eeports of Immigration Commission, Inmigrahts in Indu"stries > Part I, 

Vol. I, pp. 324-27. 

Zj Ibid , Part I, Vol. II, p. 193. 

4/ Ibid , Part II, Vol. II, p. 189-91. 



16224-27 . 



The report of the United States Commissioner on Le-hor 
Conditions of Employment in the Iron and Steel Industry (No, 3 in 
the preceding list) emphasizes the extent of the discounting of 
scrip and the small amounts of cash received by worlanen. 

The report states that exorbitant prices were charged, 

and that scrip was discounted at a rate of from 10 to 25 per cent, 

"In the case of seven companies located in the Southern 
district this necessity (dependence upon a company store) 
was made a source of profit to the company. In these 
seven companies, when the employees asked before pay 
day for the payment of wages already earned they were 
given store orders or some form of scrip which could 
then be cashed at a discount of 20 or 25 per cent ei- 
ther by the company itself or at the company store. 
These seven companies together employed 2,600 men and 
by the practice of s^ich discounting greatly reduced the 
amouat of cash necessary for the pa;;anent of wages. In 
every one of these seven plants wages were paid only 
once a month, and from 10 to 20 days were allowed in 
each case for the mailing up of the pay roll. From 40 
to 50 days, therefore, elapsed between the beginning of 
the payroll period and the day on which the settlement 
of wages was actually made* In none of these cases, 
it should be noted, is any money advanced which has not 
already been earned by the employee and which is not on 
the books to his credit. The transaction, therefore, 
amounts simply to the deduction of either one-fifth or 
one-fourth of the total amount of wages for the simple 
service of paying it before the time set by the employer 
as the regular pay day. Furthermore, the same charge 
was made for money advanced two or three days before pay 
day as for advances made two or three weeks before pay 
day. 

"In the case of other companies in the Southern district 
employing in total about 4,600 workmen store orders is- 
sued as advances on wages were not cashed directly by the 
company or by the company store, but were bought and sold 
by outside parties at discounts ranging from 10 to 25 per 
.cent. In many cases the clerks and minor officials of 
the company made of this a regular and lucrative business.i/ 

T/ U» S. Commissioner of Labor, Report on Conditions of Employment in 
the Iron and Steel Industry . (1913), Vol. Ill, pp. 392-394. 



16224-28 



"In many of the southern plaats it was fotuid tiiat alter 
the deduction of the company store hill, the coinpany 
house rent, as well as the arbitrary fees deducted for 
medical service, insurance, etc., there was such a trif- 
ling sum remaining to he paid in cash that many of the 
worlonen were practically compelled to remain in the lo- 
cality. In some of the localities worlrrnen were found 
who had had only a few dollars in cash for si:c months 
or more. Since therd is seldom another steel plant in 
the commanity such men are practically obliged to con- 
tinue in the same emoloyment, unless they can secure a 
job with some establislTment that is willing to pay tl:.eir 
railroad fare and .advance them a few dollars for iiKime- 
diate expenses." ij 

Frequent references are made in tlie literature on the SLib- 
ject to the supposedly high profits enjoyed by company stores. Lit- 
tle evidence is available on this point. One example, which was 
pi-esented as evidence to the House Committee investigating the Uni- 
ted States Steel Corporation in 1910, is furnished by the statement 
of the Union Supply Company. It is not necessarily typical of pre- 
sent conditionst 

The Union Supply Company (Ltd.) was organized in 1893, 
with a capital of $75,000 as a subsidiary of the 'Carnegie Steel Com- 
pany. It operated company stores situated largely in the cohe re- 
gions. On April 1, 1902, the Union Supply Company took oyer the busi- 
ness. ■■ of the former company. 

"The dividends of these two conipanies from 1898 to 1910 
amounted to S4-, 703,067 on a capitalization which was 
originally $75,000, but was increased to $500,000 with- 
out the addition of new funds. Within twelve years, 
therefore, these stores have paid the '-"tocldiolders 
' (in this case the United States- Steel Corporation) 63 
times as much as the capitaiization at the beginning of 
the period, without any new investment except that has 
been made out of earnings. 



1/ Op. Cit .. Vol. VII,. pp. 445-50. 



16224-29 



" The Union Supply Company (Ltd.) during the 52 months 
for which records are availahle, paid dividends equal to 
slightly over 1,617 per cent of its $75,000, which 
represents an average of 372 per cent per annum. The 
Union Supply Company, with a nominal capitalization of 
$500,000, has paid dividends aggregating 608 per cent, 
covering 104 months of business, which means an average 
per annum of 80.5 per cent, or 537 per cent of the ori- 
ginal capitalization of $75,000. The accOTints re- 

ceivahle amounted to only $977.98, which means that 
there are practically no losses through had debts, which 
form such a considerable item in the accounts of most re- 
tail merchants." if 

Daring the war years no official inquiries into these 
matters were conducted. After the ¥/ar, the coal industry again be- 
came the subject of investigation. The President appointed a United 
States Bituminous Coal Commission which reported to him in 1920. In 
both the majority and minority reports it was concluded that the ad- 
vancement of v/ages in scrip or store order, a concomitant of the cora- 
. pany store system, had created a serious evil. In the Majority Heport 
(No. 4 in the preceding list) it is stated that: 2/ 

"The mine workers presented to the Commission statements 
showing that a serious evil exists in the industry in 
certain, localities where the operators exact discounts 
upon advances of pay made betv;een pay days. 

"We recommend that the making of advances be di scour- • • 
aged in every way; and, if for any good reason an ad- 
vance is asked and made, it shall be' done without dis- 
count, either directly or indirectly." 

The tentative award as originall;' prepared for the considera- 
tion of the Commission by Commissioner J. F. T.fhite, author of the 
Minority Report 3/ was even more strongly expressed. 

l] aeuort on Conditions of Employment in the Iron and Steel Industry 

- in the United States . Vol. Ill, pp. 392-94. 
2/ HeiDort of the United States Bituminous Coal Commission^ 1920. p. 49. 
3/ Ibid , p. 119. ■ 



16224-30 



"It Was cited lay the miners during the hearings that 
a very serious evil exists in the industry, through 
the practice of the coal operators advancing money to 
e:Ttployees during the interim of pay days and exacting 
discounts. This policy, in the opinion of the Com- 
mission, is absolutely wrong, and we find no justi- 
fication for its existence. 

"The Commission decides that the coal operator shall 
not accept advance orders on the emoloyees' wages, 
and, in the event the operator advances money on ac- 
count, it shall be without order or discount." 

Tne continued instability of conditions in the coal in- 
dustry evoked the Congressional demand for a thorough investiga- 
tion. Accordingly, in September 1922, a Committee was created and 
authorized to examine into the various aspects of the problems 
(technological, economic and social) faced by the coal industry. 
One such aspect was labor relations, including the living condi- 
tions of the miners in the anthracite and bituminous coal fields. 
This study of the company store (llo. 5 in the preceding list) is by- 
far the most comprehensive of all authoritative investigations. The 
field work for this part of the study was conducted in the latter 
part of 1922. 

Tlie report which v/as completed in 1925 !_/ indicated that 
the company store problem \vas uninportant in the anthracite coal 
fields. The presence of the company store in these regions was in 
fact exceptional. This fact might be attributed not only to strength 
of the miners' union but also to the fact that the important seams 
lay in close proxim.ity to urban settlements, eliminating thereb", the 
establishment of a company town and the company store. In the oitviii- 

inou.s fields, however, the Committee's, findings indicated that the 

I 
practices of the company stores were a cause for complaint, 

l/ Senate Document 195 . 68th Congress, 2nd Session, 
16224-31 



Thus, in the matters of advance payment "by scrip and wage 
deductions, often referred to as the operators' check-off, the follow- 
ing observations are reported: 

"It is customs'.ry for the opera.tors in toth union and 
non-union fields to make certain deductions from the 
wa-^es of the miners. The deditctions inclxide occupa,— 
tional charges, such as char-^cs for smithing of tools, 
for powder, fuse, sni for certain domestic and personal 
charges like household coalj rent, oills at the com- 
pany store, cliarge'o for ths support of the doctor, hos- 
pital, school and T3abhhouse. 

"In union areas the dedactions are usu^xlly specified 
in the agreements a.nd the amount is fixed "by "bargain- 
ing "betreen the union and the operator. They liave thus 
ceased to Toe iimtiortant factors of irritation, 

"In the non-union areas the charges are fixed "by the 
operator. It is often asserted that he malces an undue 
profit on seme of the supplies fui-nisbed; s.nd that the 
charge for servicer is exorbitant, ocme of the charges 
that frenue'/ivly 'becom.e a source of irritation are for 
services thai; in othrr industries are habit-jally rendered 
"by manag'^ment as an expense incident to seo^jring and 
holding its working force, 

"Advance pa;>Tnent "by scrip and discounting of scrip- 
payment in scrip or in any other fern than lawfiil money- 
is forbidden ty law in mo;t c^Jrit-is, In some non-union 
areas, however, the practice still flourj.shes. In com- 
munities where this is practiced, the scrip is likely to 
be cashed in advance of pay days at a. discount. Some- 
times this cashing at a discount is done by the company, 
sometimes by the stores in the community, sometimes by 
persons who malce part or most of their living by dis- 
counting scrip. The effect in these communities, es- 
pecially^ in the negro communities, is to keep the vforker 
in ready cash at the e:q)ense of his gross earnings. 
Monthly pay days and the issuance of scrip, which could 
be discon.nted heavily for cash was formerly the general 
practice in Alabama, Attempts at refoi-m have repeatedly 
been maxle« A bi-monthly pay day is now in effect and it 
was stated to our investigator tha.t discounting had been 
discontinuedo However, at the first tjro mines visited 
for this study, it had not been discontinued. The dis- 
count rate between pay days was said to be 10 per cent. 
At one company, the storekeeiDer said tliat he malces a 



16224-32 



•♦practice of discoiinting at 30 per cent. Tliis same 
practice was fomid in effect "by the Arbitration Board 
that settled the strike of Alabama miners 20 years ago 
and was there condemned. It is disappointing to find 
it still ohtains, 

"The pauperizing effect on the workers is easily seen. 
In iinion areas the operator has cooperated with the 
■union in vigorous attempts to do away with the prac- ^/ 
tice of disco-anting v;ages in any form and hy any agency, -' 

In view of this evidence the Committee decided to recom- 

2/ 
nend "that the practice of discounting 'scrip' he made illegal.'' -' 

The Commission reached the conclusion also that the "relations of 

employee and employer are less clouded with personal feeling where 

3/ 

conpany stores do not exist." — ' 

The report has this further comment to make on the effect 



of the system: 



"l,yhile the company store is a necessary institution in « 
new regions, its continuance for too long a period has 
a had effect on the very people served. The practice 
of issuing scrip for store purchasing as fast as money 
is earned is a great convenience to the miner when earn- 
ings are irregular, hut it relieves the miner's wife of 
all responsihility for planning the household hudget. 
As the dinner hour approaches, the children run down to 
the store to get a dollar's worth of scrip with which 
to huy the evening meal. When sales slips are not used, 
the mother has no way of reckoning what each article 
cost, or whether the clerk made the correct deduction. 
She makes no careful examination of foods in market or 
of prices. If she had to pay cash she would have a much 
/keener sense of the value of the money and of commodities. 
Undouhtedly a sudden change from the pay-roll-deduction 
system to earning-in-full ^£^stem would result, at first, 
in extravagant emenditure of earnings and nonpayment of 
hills. But miners and their wives are adults. They 
should he given the responsihiliCy of adults as soon as 
the growth of the community develops or attrsicts compe- 
tent, independent merchants to their districts." 3 



TJ Op. Cit .. Part III, pp. 1319-1320. 

2/ Ihid , Part I, p. 156. 

3/ Ihid, Part III, pp. 1450-63. 

4/ Ihid . Part III, pp. 1450-63. 



16224-33 



The Coal Cornmission also made the only previous Gompari- 

son of prices' in company and independent stores which merits atten-^ 

tion. 

"On Decemher 15, 1922, prices on foods from 99 New 
River (West Virginia) stores, of which 57 were com- 
pany stores, and 42 independent stores were tabulated. 
All kinds of food forming as much as one-tenth of one 
per cent in the total of food purchased during 1922 
hy 5,865 New River families, were included in the 
price study. Such foods numbered 54 and equalled 
96 per cent of the total quantity purchased, 

"On 33 foods, company store prices were higher; on 
10 foods, they were equal to; and on 11 other foods, 
they were less than average prices charged in stores 
owned, independent of coal companies — :— when food prices 
charged in coirpany stores a.nd food prices charged 
in independent stores are muitip.lj.ed by the import- 
ance of a food "In lo:;al' purcha3ii-'.gs the miner's fam- 
ily buying e.il. fr\ppl:.er: in r.lne company stores, pays 
4.2 per cent more for its f'-.od than does the family 
that patronises only independent stores in the dis- 
trict".!/" 

In the KaJiawha district of West Virginia, price quotar- 

tions were obtained from 42 company stores and 158 independents. 

"Had the food bought by the 4,356 mine v;orkers' fam- 
ilies in the Ilrrjavha district in 1922, been purchased 
in company.- stoL'^S; it would have cost these fai'nilies 
4.2 per cent more than if it had all been purchased 
in independently owned stores in the district." 2/ 

This differential, in the opinion of the ComiJiission, can- 
not be attributed to the superior quality of goods haiidled by the 
company store. For 

"so numerous are the brands sold in both company and 
independent stores, so frequently are the brands on 
• the shelves of one to be seen on the shelves of the 
other, that there is no ground to believe that the 
reason for higher prices could be attributed to dif- 
ferences in quality of stock, " 3/ 



TJ U. S. Coal Co mi nission Report ., 1925.~ "Part III, pp. 1517-19. 
2/ Ibid , pp. 1532-33, 
3/ Idem . 



16224-34 



Iji the Alabama district, a similar price study was made. 
Data were secured from 23 coal-corapany-oA'med stores and from 33 in- 
dependent stores on 52 articles of food, representing 90 per cent 
of the total quantity of food purchased during the year, 

''On 11 articles of food, isrices in commissaries and 
independent stores, were identical; on 8, they were 
lower in corqioany stores, and on 30, they were higher. 
Had mine workers' families purchased all supplies at 
company stores, it would have cost them 7 per cent 
more than if they had purchased all supplies at in- 
dependent stores, " _l/ 

The Commission's explanation of the difference between 

company store and independent store prices is a.s follows: 

"The difference in price seems to he due to the fact 
that iTianagers of company stores, in addition to earn- 
ing their own salaries and those of their assistant?, 
want to malce a profit for the company, whereas many, 
of the independent stores are operated as family con- 
cerns, with no salaries to pay q*nd only the family • 
living to get from the proceeds of the "business." ^- 

The derpressod conditions in the coal field in 1928 again., 
pi'ovoked Congressional action. The Senate passed a resolution to ■ 
"Investigate Conditions in the Coal Fields -of Pennsylvania, West J 
Virginia and Ohio." 2j A Sub-Committee of the Senate Committee on^ 
Interstate Commei-ce, composed of Senators Gooding, Wagner, and 
"ilheeler, made a field trip to the Pittsburgh region in Febrxiary ; 
1928 to observe conditions, 

A detail of this report (listed as No. 5) is tliat a miner 
named Charles E. Barr, ^/ the husband of a woman interviewed by the 
Committee, made an affidavit to the effect that he was discharged ■ 



T] Op. Cit. , pp. 1566-67. 
2/ Ibid , Part III, pp. 1460-63. 
3/ S. Res. 105, 70th Congress, 1st Session. 

4/ Hearings before the Committee of Interstate Commerce, U, S, Senate 
Pes. 105, 70th Congress, February 10, 1928, pi 175. 



16224-35 



from the employ of the Pittsburgh Coal Company on accoxuit as said 

' I 

by the Superintendent of said mine, of his wife having talked too 

much to the Coraiiiitteei 

John L» Le\7is, President of the United Mine Workers of 
America, related graphically to the Committee the hand-to-mouth 
existence which mine workers live in in times of slov? work. The 
Case of a certain Joel McG-uff, who was forced to sm'uggle his house- 
hold goods off the ir'ne property to escape what he called "virtual 
slavery" is also related, ij 

In the Dsvis-Kelley Bill (1933) "to regulate interstate 
and foreign commerce in bituminous, etc," 2/ there is a clause read- 
ing "Employees of all licensees .... shrill be free to purchase their 
necessities of life vdiere they choose." Congressmaia Zelley (No. 7 
in list) during the Senatorial Hearings, (Ma.rch and April) explains 
the purpose of this orovision of the Bill as follows: 

"We provide also that the company store shall not have 
arbitrary power to compel buying patronage and that op- 
erators sliall not require miners to buy merchandise from 
them wiien the miners do not desire it»" 

Ihe follov/ing quotations are taken from the hearings 3/ of 



the bill; 



Mr. Adams: "The coal industry is the only in- 

dusti'y that sells its product at a 
loss and then attempts to earn a 
profit through company store systems 
that charge from 20 to 40 per cent 
more than independent store prices, 
all by a system of forced trading. 
The miner either submits or forfeits 
his job. " 



1/ Op Git, p. 4-75. 

2/ S. 2935,* 73:1. ' ' ' " ' 

3/ Hearings on the Davis-Eelly' Bill, S. 2935, 72:1, pp. 753-3. 



16224-36 



Senator Davis: 



Mr. Adams: 



"That does not prevail, that charging 
40 per cent more, in every mine?" 

"I did not sa,y that, Senator. There 
are ■■icr-ie "benevolent coal operators, 
even among the non-tinion fellows, so . 
far as dealiiig with their men. There 
night nob he many, hut there are some, 
piic for the most part the piarpose of 
the corinlssary — it does not make any 
diffovenne whether -^t is a union field 
cr a non--Qi'.ion field, the purpose of 
the cmimissary is 'co malce money and to 
malce as much as they can. They even 
lend money for 15 days and charge 10 
per cent for it, " 



Senator Hatfield; ''Do you think the commissary as a gen- 
eral rule is an advantage or disadvan- 
tage to the coal miner? " 



Mr, Adams: 



"Well, I will say in adcie particular 
spots a commissary is ahsolutely nec- 
essar;.''* I think a commissary is to 
the miner's disad-'ra.ntage and very cost- 
ly to ^im, v/herever it operates. That 
is my i'rank opinion ahout it." • 

"Are you familiar with the commissary 
store at the copper mines in Arizona, 
Senator Hayden? " 

"There have heen complaints in many 
instances such as the witness says, " 

"That was originally worked out down 
there very satisfactorily for a time 
during the T/ar, I rememher reading the 
re;oort of one of the divisions of the 
Depart ".-lent of Lahor. " 

The interrogation of Senator Ilayden of Arizona at the hear- 
ings on the Davis-Kelley Bill suggested a possible solution that has 
"been used in the copper mines of Arizona, 

Senator Hayden; "The fa«ts are that in practice at the 

copper mining camps the surface of the 
grouaid is not owned hy the mining com-^ 
pany, that is the town site, and there- 



Senator Davis: 

Senator Haydsn: 
Senator Davis: 



16224-37 



Senator Eayden: "fore it is a comparatively simple 
(continued) matter in most instaiices for a mer- 
chant to p-orchase a lot, "build a store 
and sell goods in competition with the 
company store. So that in recent years 
the complaint has not 'been general, and 
the ohjections to the prices of company 
stores have not been as loud. That is 
the situation as it exists in the last 
«10 or 15 years. Prior to that time there 
was considerahle compl'^^int ahout miners 
being compelled to purchase at the com- 
pany's store in opposition to the com- 
pany's allowing rival merchants to es- 
tablish business." i/ 

The most recent Senatorial investigation (listed as No, 8 

above) to touch upon the subject was the hearings during May 1932 by 

a Sub-Committee of the Committee on Manufacturers on conditions in 

the coal fields of Harlan and Bel?. Counties, Kentuclcy. Mr, Garland, 

a miner from Pinesville, Kentucky in his statement alleged that at 

this late date coercion was still exerted hj. the company stores in 

order to secure patronage. 

"If a miner is able to leave scrip in there for a 
month, then he will get it in money; but he will not 
get to work more than two weeks until they see, when 
he ain't taking it out in scrip, they fire him, like 
they told the men at Kitts, Kentucky. Tliey said, 'If 
you trade at Piggly Wiggly's, you can get your job at 
Piggly Wiggly's,' That is v/hat the superintendent got 
up at the drift mouth and made a speech to, " 2/ 

Testimony to the same effect was given by Melvin P. Levy, 
Secretary of the National Association for Defense of Political Pri- 
soners. It follov;s in part: 

"I also saw and at one time had in my possession a 
letter from the Black Mountain Coal Corporation to 
one of its employees, which said: 'We note in the 



1/ Hearings on the Davis-Kelley Bill, S, 2935:1, pp, 752-3. 
2/ U. S. Senate Hearings in S. Res. 178, 72:1, pp. 17-18. 



16224-38 



"company' s "books that you are not taking out much, scrip. 
This is an indication to 'is t\^n-^ y- u -x. i- l^-^;:' ^ a 
private stores', and then continued with a request for 
the miner to come in and look things over and that if 
he did so ICO per cent of his trade would go to the 
company's store or else — . The man tliat had this letter 
sent to him gave it to me. He told me he went to the 
coiTipany store and said he could not afford to trade at 
the co/.'rpany store and vras dismissed. " l/ 

Daniel M. Carrell, Colonel of 138th Field Artillery, Louis- 
ville, Kentucky was requested to investigate conditions in these coun- 
ties for the Governor, The relevant excerpts from his testimony —f 



are quoted: 



Colonel Carrell: 



"Well, in the investigation we asked 
a numher of the miners that came to 
us and told us that the stoppages took 
up nearly all they liad and we asked 
them to "bring their pay sheets to us, 
as we wanted to look at that, and we 
were ahle to get some, "but none showing 
a situation as "bad as that which had 
"been painted "by some of the miners. 
Some of them corresponded with the 
statements and others who had had 
statements did not turn them in," 



Senator Costigan; "Some miners received nothingoover 

the deductions?" 



Colonel Carrell: 



"That was their claim. We wanted to 
see if it were true. The Governor 
asked for us to investigate that sort 
of thing. Vifhen the statement ca:ne to 
us the lowest we found in two weeks at 
that time was $19.08 for two weeks,' 
pay, " 

Senator Costigan: "It was my understanding that you 

said some of the miners' statements 
of that sort were confirmed? " 



17 Op. Cit . p. 50. 
2/ rbid, pp. 131-32. 



16224-39 



Colonel Carrell: "I said some of the miners' state- 
ments were confirmed, tut not the 
miners who claimed the stoppae'ss was 
all they had. If there happened to 
he a shut- down in a mine at any time 
for a. month, they might not even cov- 
er the stoppag'es with their earnings. 
In that case that would he a charge 
against them for another time. The 
stoppages amounted to between $15.00 
and $16.00 a month — ^that is one-half 
of that amount each pay." 

The statement of Howard H. Eavenson, President of the 

Clover Splint Coal Company of Pittshurgh, s\ihmitted at the Senate 

hearings, is quoted he low: 1/ , 

"Practically every mine in the Karlan field, as well 
as in all of the other southern fields — and I might 
say the northern ones — opera,tes its own store. In 
most cases, on accoutxt of the lacl: of such facilities, 
it is absolutely necessary. (In some places, as has 
"been charged, it is probable that the men are required 
to buy in the stores, and it is also possible that some 
of the stores charge more for the goods sold than can 
be bought for in other parts of the county. ) The writer 
personally has never been connected with any company 
which compelled or even suggested to its men to deal 
at its own store, and my own opinion is that this is 
the practice pursued by most of the mines in the Harlan 
field." 

In the hearings for the adoption of the Code of Fair Com- 
petition for the bituminous coal, industry, some references were made 
to company store practice, and provisions regulating these practices 
were included in the code. Testimony by two operators in the hear- 
ings on the code are as follows: 

Mr, G-eorge B, Hanington, President of Chicago, Wilmington ■ 
ajid Franklin Coal Company, Chicago, Illinois remarked: 



1/ Op. Cit. . p. 192. 



16224-40 



"Uow, all over the Middle West, and I am pretty siire 
in other districts, one of the meanest methods of un- 
fair competition is agreeing to pay the men the stand- 
a.rd scale and then pay them in phony money or talie hac]: 
his security "by raising their rents or in some other 
way, and v/e put this provision in and "believe it will 
"be one of the very important and helpful things in 
restoring decent competition in our "business if we 
can stop that." l/ 

j'ran]: E. Taplin, Cleveland, Ohio, on behalf of the Central 

Coal Association said: 

"In the non-union mines it is the general practice — 
that is, our mines and everybody else's non-union 
mines — vrtien the men do not trade at the company store 
and pay whatever prices are aslied, they are let out. 
That is particularly true in the South. Furthermore, 
there is the practice in a great many non-union mines 
of paying the men with scrip which is good only at 
the conpany store." 2/ 

This survey has, in the main, been confined to govern- 
mental investigations. A number of studies have been made by pri- 
vate organizations. A recent publication, The Plight of the Bitum- 
inous Coal Miner by Homer Lawrence Morris, records one of these. 
The author was an active participant in the relief program in the 
mining camps undertaken by the American Friends Service Committee 
of Philadelphia. The Committee's relief activities consisted mainl;'- 
in a child-feeding program starting in September 1931 and continuing 
throughout 1932, The program eventually embraced 690 schools in 41 
counties and six states-. The above-mentioned study is based on the 
©bservations obtained in connection with the relief work. We restrict 
ourselves to three quotations. 



1/ Coal Code Hearings, August 10, 1933, p. 1013. 
2/ Ibid , p. 1043. 



16224-41 



The first one indicates, as the Coal Commission did ten 
years earlier, that the long-time effects of the scrip and company- 
store system affect adversely the development of individ-oal and com- 
munity responsibility. 

"The miner's wife has an unusual amount of leisure 
time because her housekeeping duties are rather simple. 
The food is obtained largely from the commissary and 
requires little preparation. Most of the expenditures 
of the family are made in the company store. Sent, 
light, heat, doctor's fees, and hospital charges are 
all deducted from the pay envelope. That which re- 
mains of the wages may be spent for groceries and 
clothing. The children do a surprisingly large amount 
of the buying. It is easy to send them to the store to 
•get food for the next meal. The housewife places on 
the store manager the responsibility of seeing that 
the charge account does not exceed the miner's wages. 
The whole system makes it possible for the wife to be 
relieved of the necessity of planning carefully the 
household expenditures and living v/ithin a budget. 
This practice thwarts not only habits of economy and 
individual responsibility, but also leaves a dispropor- 
tionate amoi:mt of time for leisure which the cominunity 
is not organized to utilize constructively." —' 

In commenting on conditions in one m.ining canrp, the author 

observed that 

"The secret of the m.iners' loyalty to this company lay 
in the labor policy which the company had followed. 
No imion had been tolerated in the camp since the 
strike of 1922, althoijgh higher wages had been paid 
than by most other companies. At times the T;ages had 
been considerably above the ujiion wage scale. Rents 
had been reasonable and the houses had been kept in 
good repair. There had been neither pressure nor at- 
tempt to compel the employees to trade at the company 
store. The manager of the store had been required to 
compete with independent store prices. This had been 
done successfully. Not a miner interviewed had a word 
of criticism against the management or the policy of 
this company store. This liberal store policy prob- 
ably had more to do with the attitude of the miners 
toward the coal company than anything else. The miners 



1/ Homer Lawrence Morris, The Plight of th e Bituminous Coal Miner. 
1934, p. 94. 



16224-42 



repeatedly made tlie stat6ra6nt: 'This was the best 
lolace to work along the creek .... The company 
never roblDed us of on.r money at the .store. liThen a 
man "became dissatisfied and left this camp you could 
always expect him "back. |' " l/ 

The remaining quotation summarizes the "burden of this 

section, i.e., the continued existence of the complaint among the 

"bituminous coal miners, 

"Tl:ie severe criticism made "by the mine'rs a decade ago 
against the high prices charged in the conipany stores 
has not ceased, but continues to he a grievous complaint 
as evidenced "oy the criticisms voiced by the uneiuployed 
miners interviewed in connection v/ith this study. High 
prices are usually accompanied by the requirement that 
the employees trade in the coiiipany stores. 'I've 'mown 
men to buy some food at the A & P store and then get 
fired the next day for something they didn't do! The 
miners resent this tj/pe of coercion and exploitation. 
The management of the company store has caused more ill 
VTill, misunderstanding, labor turnover,' and labor dif- 
ficulties than any other policy of the coal operators. "2/ 

Conditions in the Southern cotton mill villages have only 
infrequently been subjected to governmental inquirj'' with the result 
that there is a paucity of published material dealing with conditions 
in the textile industry. However, since the strikes in this section 
during 1929, there have been several non-official investigations. 
One of these was umdertalcen by the Fedei"-al Council of the Churches of 
Christ in America. . In the latter hal:': of 1929 several members of the 
research section of this organization ma,de an intensive study of con- 
ditions in Marion, North Carolina. The section dealing with company 
stores reads as follows: 



1/ Morris, Op. Cit . , p. 119 
2/ Ibid , p. 156 



16224-43 



"Fnile workers were not conipelled to trade at the 
company stores maintained lay "both, the companies, 
they said that the credit system in effect often 
compels them to do so, because credit is issued 
against future pay he means of hooks of tickets 
good for trade at the company stores, New fami- 
lies, in particular, fai'nilies with the lower weekly 
earnings, and those who may get "behind because of 
sickness, unemployment or accident and have no cash 
reserves, become indebted to the company stores in a 
way that sometimes involves in advance a high per cent 
of their wages, leaving them little or no cash. Ac- 
cording to workers and others who have investigated, 
cash is often obtained by such employees bjr selling 
books of tickets which are bought in at a considerable 
discount by overseers and others who have money. Thus, 
at some sacrifice, they can obtain cash to purchase 
goods in the independent stores or for other purposes. 
They say that the prices charged by the company stores 
are considerably higher than the prices of correspond- 
ing articles in the independent stores," U 



1/ Federal Council of Churches of Christ in America, Information Ser- 
vice of the Department of Eesearch and Education, "Vol. VIII, No. 47, p. 3. 



16224-44 



EEGISLATIOU IK ?OEEIG$r COUITTRIES 

Conpaiiy stores have had a lon^ history in European coun- 
tries. This section of our report summarizes, the more important 
legislation, 
England . 

The legislation relating to the "truck system" dates "ba,c]c 
many years. The Towa Labourer .1750-1832 by J. L. and Barbara Ham- 
mond graphically describes the difficulties met with in the attempt 
to enforce the "truck acts", and the tendency of the magistrates 
when called upon to enforce .the law, or when serious trouble result- 
ed from non-enforcement to jail the protesting worlonen under vagran- 
cy acts rather than to require obedience by enployers.. A quotation 
from this source follows: 

"There was a Truck Act on the Statu'^e boolc as early as 
172S, the first Act applying to the woolen industry. 
Erom 1749 there are vax'i-.ous Truc]c Acts applying to 
other industries, 

"In the coal and iron works of the Midlands and Wales 
the masters paid wages to a large extent by meaiis of 
their "Tommy-shopis" , and the abuses were particularly 
flagrant. This sy5t:)mwas a perpetual cause of ill- 
feeling in the lifa of the district; it poisoned the 
relations of masters and men, and it vitiated all the 
calculations of the wages paid, so that the men felt 
that in every qoarrel the enployers were deceiving the 
public by their statements of the 'ample pay and con- 
stant work' onjoyedby their misguided men. This was 
the feeling of others beside worlnnen." 

Tlie agitation discussed by Hammond led to the Act of 1831 
which is practically the beginning of modern legislation on the sub- 
ject of "truck". It not only repealed the mass of previous legisla- 



16234-45 



tion on the stfoject but also 'becarae the operative statute. One of 
the objects which Parliament had in view is stated in the preamhle 
of the Act: "... to prohihit the payment, in certain trades, of 
wages in goods or otherwise than in the current coin of the realm." 
To this end contracts between employer and employee were illegal 
which (a) allowed payment of wages "by any other method than in coin; 
(b) made any provision as to how, where, or with whom any part of 
the wages were to be expended. Collection over payroll was prohi- 
bited by requiring the payment of the entire amount of the wages 
earned to be made in coin and not otherwise; and any part of the 
wages so paid could be recovered by the v/orker and no set off by 
the employer v/as permitted for goods supplied by the employer. 
Deductions for medicine or medical treatment, fuel materials, 
tools, rent, and meals prepared and eaten on the employer's pre- 
mises were the only ones permitted. And these could not exceed 
their real and true value, and could only be made in ipursuance of 

a contract in writing signed by the .worker.—/ 

The Act of 1831, however, according to the Report of 

the Truck Committee of 1908, did not go far towards elimination 

of the practice of "truck". The enumeration of trades to which 

it was applied by Section 19 was large, buf did -not include masses 

of the population who were engaged in industries other than set 

forth. To quote from a memorandum on the law relating to truck. 

issued by the Home Office in 1896: 



1/ Joseph 0\7ner, Handbook to the Factory Acts and Truck Acts 
(1933), pp. 102-3. 



16224-46 



"'Truck therefore still continued in other employ- 
ments. It Was, perhaps, at its worst among the la- 
"bourers employed to make railways who used hardly 
ever to receive money except at long intervals, when 
they celehrated an orgie. 

"'This evil was considered liy a Select Committee in 
1846, who recommended the extension of the Truck Acts 
to persons engaged in malciiig railways. But no parlia- 
mentary action followed this report "'ntil 1887. 

"' In 'cohsequence of a fresh agitation among the work- 
ing classes, a Royal Commission upon Truck was appointed 
— ^which went over the whole of the ground again, and pre- 
sented a voluminous report, 

"'They endeavored to form some estimate of the extent 
to which the Truck Act was heing broken and they came 
to the conclusion that, counting women and children, 
prohahly nearly half a million of people were dependent 
on wor]":s where either poundage (i.e., interest on money 
advances) is charged, or a shop kept "by the employer. 
Truck Was found chiefly to exist in the coal and iron 
mines in Wales. It was carried on hy means of long-de- 
.... ferred wage payments, which forced the men to seek for 
advances, which they got as a grace, and as a condition 
of which they were hound to deal at the employer' s shop. 
A man who, having received his advance, slipped aWay 
with it without expending it in the eiitployer' s shop. 
Was called a "sloper", a term which has passed into 
vulgar language." 

The 1908 report continues: 

"Ey the Act of 1887 the principle was extended to aiiy 
'person who, heing a labourer, servant in husbandry, 
journeyman, artificer, handcraf tsman, miner or other- 
wise engaged in manual labour, whether under the age 
of 21 years or above that age, has entered into or 
works under a contract with an employer, whether the 
contract be expressed or iirplied, oral or in writ- 
ing, and be a contract of service or a contract person- 
ally to execute any work or labour,' Provision was al- 
so made for a more effective enforcement of this Act." !_/ 

In this manner was the truck system abolished. Subsequent 

investigations into the truck system made in 1896 and 1908 were 



l/ Op. cit . pp. C.-6, 



16224-47 



concerned with stoppages or deductions for fines and penalties im- 
posed upon workers in some industries. 

Q-ermany 

The laws of the German Empire (1908) are contained in 
"7 Reichsgewer"be-ordnung!' » They provide that, in general, wages 
are to be paid in cash. The employer is forbidden to supply goods 
on credit* If he does, he cannot sue for them, nor make deductions, 
nor demand the return of the goods, which, with any payments that 
may have been made, are forfeited to the ?/orkmen' s relief funds 
(Hilf skassen) . Moreover, payment by orders or stamps on the shop 
of employer is forbidden. ; 

Nevertheless, payments in kind are permitted if they are 
effected by previous agreement or by the workmen's consent given 
at the time of payment. But such payments are, limited to the sup- 
ply of regular meals at average cost, food and drinlc at cost price, 
house and land at ordinary local rates, medicine and medical attend- 
ance, and tools and materials under like conditions of cost. 

One of the results of this legislation was the formation 
of stores (Werkskonsuraanstalten) owned by industrial enterprises 
but operated on a quasi-consumers'' cooperative basis. That is, the 
bulk of the sales in these stores is for cash and even for those 
items, such as furniture and clothing, sold on credit, no deductions 
are made from the worker's wage. The cooperative feature consists 
in rebating any profits to the individual workers in proportion to 
their patronage with the store. Under pressure from independent re- 



16224-48 



tailers, these stores were prohi'bited from selling to persois not 
in the employ of the parent enterprise. The v/orkers are given a 
voice in the management of the store through a worker's council, 
hut seemingly it is only nominal, the real control resting with the 
parent concern. However, the aggregate volume of business of the 
V('erkskonsuraanstalten is not large and therefore should not he re- 
garded as the German counterpart to the imerican company store, l] 

Prance 

In France the cornpany store hegan to appear ahout the 
middle of the nineteenth centuxy at the time when heavy industry 
Was developing. As in other countries these industries were de- 
veloped in relatively isolated regions necessitating the establish- 
ment of cornpany stores. Such stores were also established in less 
isolated regions at this time in order to combat the high cost of 
living. They seemed to have been initiated for genuine humanitari- 
an purposes. But within a few decades they were transformed into 
instruments of ejrploitation. Commodities were sold above cost with 
the intention of ma--:ing substantial profits; the introduction of 
this motive led to coercion to trade and a denial of service to 
strikers. Tnese abuses stirred up agitation among the workers at 
the very time that the French consumers' cooperative movement was 
extending its scope of operations; and la many cases the a^buses of 
the corrpaay stores (economat) were eradicated by a complete liquida- 



1/ For a more detailed discussion of the activities of the Werlcskon- 
sumanstalten, see Ausschuss zur Untersuchung der Erzengungs and Ab- 
satzbedingongen der deutschen V/irtschaft. Unterausschuss (III) fur 
Gewerbe (Industrie, Handel und Hajidwerk) w'erks'-consumanstalten 1929, 



16224-49 



tion of the company store and the establishment of a geniiine con-_ 

sutriers' cooperative. Nevertheless, "by 1910 the company stores 

1/ 
existed in sufficient mjnihers to warrant legislation on the subject." 

On the 25th of March 1910, there was passed an "Act sup- 
pressing truck shops and prohihiting employers from selling," dir- 
ectly or indirectly, to their worlanen and employees supplies and 

2/ 
goods of any kind," The provisions of this Act are: ' 

"It shall not he lawful for an employer (l) to estab- 
lish in his industrial premises a truck shop for the 
direct or indirect sale to his worlanen or employees 
or to their families of supplies and goods of any 
kind; (2) to require his worlanen or employees to spend 
their wages wholly or in part in shops designated hy 
him, 

"Notwithstanding, this prohibition shall not apply to 
any contract of work which provides that the worlanen 
shall receive board and lodging in addition to a fixed 
money wage, or if the employer provides the .worlanen 
with supplies at cost price in execution of the con- 
tract, 

"All truck shops shall be closed within two years of 
the promulgation of this Act," SJ 

The only exemption is the truck .shops established by rail- 
way companies under state control. These may continue to operate 
provided employees are not obliged to b-uy from the truck shop; the 
employer malres no profit from the sale of supplies; and the manage- 
ment of the shop shall be by a commission one-third of whose meraber- 
ghip is elected by the workers of the pea-ent railway company, 

l/ For a history of the company store in France, see, J. Lansard, 
Etudes Economi q ues et Legislative ; Les economat (ISOS) , 
2/ Bulletin of the International Labour Office . Vol. V (1910), p. 377, 
S/ Idem . 



15224-50 



Spain 

Spaiii too had seen fit in the pre-war period to enact 
rather drastic legislation on the subject of trucik. A Royal De- 
cree "prohibiting the estahlishiaent of canteens belonging to em- 
ployers or their representatives in factories, nines and productive 
undertakings of any kind, and ordering the payment of wages in le- 
gal currency" was issued on July 18, 1907. The provisions of this 
Decree appear also in the Labour Code proi.Tulgated in 1925. Not 
only irnist Y;ages earned in industrial erjployment be paid in legal 
currency but "No shops, canteens or tobacco shops belonging to em- 
ployers, contractors, overseers, or their representatives, or to 
persons who, as a result of their industrial position have any 
hold over the persons employed in the industry concerned, shall 
be established in any factory, mine, or building, or productive 
undertaking of any kind whatsoever. "_y 

Exception to this rule is granted "in the case of places 
of sale (economatos) organized by employers or contractors for 
the purpose of supplying provisions for their workmen, provided 
that all such provisions shall be supplied or sold at cost price, 
and that the worlcmen shall be given a certain amount of control 
over the said places of sale." In addition, a provision of the 
1926 decree stipulates that publicity be given to the conditions 
uxLder which the goods are supplied. £/ 

Other European Countries 

In Belgium and Austria the legislation is some what more 

1/ Bulletin of the International Labor Office , No. 2, 1907, p. 377. 

2/ International Labour Office, Legislative Series, 1926, p. 5, 
16224-51 



tolerant of the triick system. Although the law in each of these 
countries requires the payment of vrages in legal tender, and pro- 
hihits any contracts binding the worker to purchase at a certain 
store, except in the case of uniforms, tools, and miners' supplies, 
there are numerous exceptions which permit -wage payments in kind. 
Thus, among other things, commodities (denrees) clothes, and fuel 
at net cost may he supplied to the Belgian workers hy their employ- 
ers. In Austria payment in kind may he made in pursuance of an 
agreement to that effect and such payments may embrace lodging, 
fuel, and provisions or regular board, the value being reckoned 
at what it would cost the worlanan to obtain them. 

This brief comparative, survey based on The Report of 
the British Truck Committee, 1908 indicates that, by the outbreak 
of the World War, the. more important industrial European countries 
saw fit either to abolish or regulate the activities of the com- 
pany store. In the post-war period, accordingly, the main exten- 
sions of this legislation in Europe, with the exception of Bulgar- 
ia, were to the countries created by the peace treaties, such as 
Poland and Finland. In the latter instances the legislation is 
more regulative than prohibitive. In Poland the company stores 
are permitted to operate under license from the local labour in- 
spector. Prices which are not to exceed "average market prices" 
must be filed and approved by the inspector. 

The Pinni sh statute is rather ambiguous. Although "Wages 
shall be paid in ctirrent coin of the realm, goods or privileges as 

1/ Report British Truck Committee, 1908, pp. 96-97. 
16224-53 



specified in the contract ^^ and goods or credits shall not he suh- 
stituted for cash v^ages and any stipulation to the contrary shall 
he void," nevertheless, "remuneration fixed in kind shall he is- 
sued according to its nature and local custom." There is inserted, 
hov/ever, the clause voiding "any contract restricting the right of 
the worker to dispose of his iivages freely, except as concerns tax- , 
es or contrihutions to workers' henefit funds estahlished in ac- 
cordance with the law which exist exclusively for the advantage of 
the workerc," 2J 

The Bulgarian Act, although of somewhat limited ap-plica- 
tion, applies to the handicrafts and provides that "Masters shall 
not supply their employees with goods of any kind or alcoholic 
heverages on credit and workers shall not he compelled to purchase 
goods in shops designed or recommended hy the master." But of more 
importance, "Deductions from wages shall not he made otherwise than 
on an order of a law court, in the case of amounts for which ths 
master is liahle under this Act .or fines imposed in the undertalcing 
of which the worker has heen informed on entry into the employment, 
and shall not exceed one-fourth of the wages. _/ 

In non-European areas there have also heen sigiificent 
legislative developments, especially in colonial countries. In 
1923 the company store was .materially regulated in hoth the Feder- 
ated Malay States and the Strait Settlements . The relevant sec- 
tions of the law are presented. "In all agreements or contracts 
for the hiring of any labourer or for tlie performance "by an la- 
hcfurer of any lahour the wages of such lahouxer shall he payahle 

1/ Op. Cit., 1922 - Fin. 1. — - 

2/ C^. Cit., 1926 - Bulg. 1-B. 

16224-53 



in. iegaX -tender and not otherwise, and if in any siich agreement 
or contract the whole or any part of such wages shall he payable 

in any other manner such agreement or contract shall he illegal, 

1/ ■ ■■ 

null and void*" ~ 

However, a store for the sale of provisions and opera- - 

ted by the employer is permitted under certain conditions. 

"Nothing in this Chapter shall render illegal an 
agreement or contract with a labourer for giving 
to him food, a dv/elling place or other allov/ances 
or privileges in addition to money wages as a re- 
muneration for his services, but so that no employer 
shall give to a labourer any opitun or chandu or in- 
toxicating liq.uor by way of such rennineration* 

"118- (i) Nothing in this Chapter shall prevent 
the employer, with the approval in writing of the 

. Controller, which may at any time be revoked, from 
establishing a shop for the sale of rice and pro- 
visions generally to his labourers; but no labourer 
shall be compelled by any contract or agreement, 

■ written or' verbal, to purchase rice or other pro- 
visions at such shop, and, no opium or chandu or in- - 
toxicating -liquor shall be sold at any such shop* 

" (ii) Nothing in this chapter shall be held to ap- 
ply to a toddy-shop licensed, with the approval of 
the Controller in writing, under the provisions of 
'The Excise Enactment, 1923,' but no laboui'er shall 
be compelled "bj any contract or agreement, written 
or verbal, to purchase toddy at such shop. 

" (iii) No employer shall establish. or keep, -or per- ,. . 
mit to be established or kept, a shop- -on any place of 
employment for the sale of proylsrons to his labotirers 
otherwise thaxi dj^.a-ocor-dance' with the preceding sub- 
sections." 2/ f , 

Rather severe penalities are provided. 

Some of the French colonies have even more stringent regu- 
lations than those just discussed. For example, in French Indo-Ghina 

1/ Op. Cit. . Legislative Series, .1923, F.M.S. 1 (Federated Malay 
States) and 1923 S.S. 1 (Straights Settlements). 

2/ Idem . 
16224-54 



it has "been ordered that the total amotgit of the advances sliall 
he repaid hy monthly dediictions from v/a-i'es, provided that such 
deductions shall not exceed one-fourth of the contract work, l/ .'forth 
Borneo , though not a French colony, has a similar provision to t'.-.-i 
effect that "no deduction on account for any advance made shall 
exceed pne-third of the airiount actxi^lly earned in respect of the 
month's work." Moreover, no manager, assistant, or overseer sliall 
directly or indirectly traffic under axij circumstances with his en- 
ployees. To an employer, however, -qjon proof, a certificate of 
convenience and necessity is issued for the operation of a supply 
depot with the condition that the prices mast have the approval of 
the Protector, 

In the French colonies of Oceania , French Guiana, and 
Uew Caledonia the corcpany store is virtually prohihited. Only 
those company stores operated "by producers' cooperatives aaid ob- 
serving the following conditions are permitted to function: 

"(l) That the employees are not obliged to "buy at 
the company stores; (2) that the sale of provisions 
and goods "brings no profit to the undertakings; 
(3) that the company stores are carried on. under 
the S"U5)ervision of a committee at least one- third 
of the members of which are elected by the wage- 
earning and salaried employees of the underta!id.ng. " 2_l 

In ITew Zealand according to the comparative survey ma.de ~o-j 

the British Truck Committee of 1908, "Such supply goods illegally 

supplied, and goods supplied, sold or delivered at the shop, etc. 

of the employer or 'oj his orders is not effective payment. The 

workman may still recovery his wages when the snpply is expressly 



1/ op.cit . , 1927 - Fr. 11-A. 
2/ Il3id. , 1927 - Fr. 13-A, B. 



16224-55 



provided by an exception in the Act, the employer cannot "bring an 
action in respect thereof, nor can the supply be made the subject 
of a set-off or counter-claim against the workman in an action by 
him against the employer in respect af his wages." ~' 

Tiie Australian provinces of New South Wales and Western 

Australia have had a similar enactment, 2/ In 1929, the province 

3/ 
of Victoria legislated to the same effect. The Canadian province 

of British Columbia also has had effective legislation for many- 
years. In case of worlanen generally "advances to' which the work- 
man is entitled are not to be withheld or subject to deduction of 
poiandage, discoimt, interest, etc." However, in the case of urban 
workmen, "Payment in goods is prohibited, .and of no effect. Goods, 
board or lodging cannot be the subject of an, action by the employer 
and cannot be set off against a claim for wages. There are, how- 
ever, special; exceptions permitting the supply of the following: 
Medicine and medical attendance, fuel ,, provender for cattle used 
in work, tenements, materials, tools and implements used by miners, 
fishers, and loggers, and the boarding and lodging, in company's 
boarding cars, of workmen constructing or repairing railways." — ' 

Mention should also be made of the legislation in two 
South American countries. In Chile the attempt to control the in- 
stitution has talcen the form of prohibiting, collection over payroll 
and of ruling that "Trade shall be free within the limits of the 

1/ Op. Git. , p. 95. 

2/ Ibid ., pp. 96-97. 

3/ International Labour Office, Legislative Series , 1929-Austral. 13. 

4/ Report of the Truck Committee . 1908, p.410. ' 

16224-56 



workers' villages connected v/ith nitrate -undertakings and mining 
and industrial establishments, provided that persons carrying on 
trade shall comply with the riiles respecting registration and in- 
spection laid down hy the rogiilations. " Stores maintained "by the 
•undertaking for the convenience of their workers (pul Ferias) are 
not outlawed, hut the sales price must not exceed the cost of each 
article, including the cost of transport and the value of any 
Wastage, plus an allowance not exceeding 10 per cent for expenses 
of majiagement. " The Venezuelan Act pertains a mine workers aiad 
13 of that type which linits the percentage of the wage liahle to 
deduction. It stipulates that "the wages, salary, or other re- 
muneration of a worker shall not, he liahle to attachment heyond 
one- third thereof." !_/ 



1/ Op. cit .. 1924 - Chile 2 and 1925 -.Yen. 1 



16224-57 



COMPMY STOBE ACTIVITY AS REVEALED BY FIELD lOTESTI&AIIOIT 

In conAieting the field investigation on the implications 
of the use of company scrip and other forms of company store credit, 
detailed ^inq-airies were made into the conditions which prevail in 
the ten eastern states in which company stores are most nxunerous 
and the use of scrip as a form of wage payment, most common. — 

Very early in the investigation a number of questions 
emerged v/hich tended to define the course of the field inquiry, ^ 
Among such questions were: 

(1) Does the use of scrip extend the employer's 
control over the laborer to a degree not common 
When a more conventional wage system is used? 

(2) Are the prices charged by the company store 
higher than those charged "by neighboring independ- 
ent stores? 

(3^ How does the company store affect the interest 
of labor and of independent merchants? 

In the conduct of the study, an effort was made to an- 
swer specifically the above questions, and in general to gather suf- 
ficient information to enable the committee to arrive at an apprai- 
sal of the appropriateness of scrip and other charge over payroll 
arrangements* 

An individual questionnaire and complete information on 

policies and prices were compiled for 150 commissaries and 100 neigh- 

2/ 

boring independent stores. 

1/ .The investigation was conducted in Alabama, Arkansas, North and 
South Carolina, Georgia, Kentuclcy, Pennsylvania, Tennessee, Virginia, 
and ViTest Virginia. 

2/ Six investigators made the inquiry. They included: Daniel Creamer, 
R. A. Neary, Collis Stocking, and the three members of the Committee, 
C. B. Fowler, Daniel Bloomfield, and H. P. Dutton. 

16224-58 



More cursory investigation was made of an additional 35 
commissaries selected at random to verify the representativeness of 
the commissaries for which more detailed data were conipiled. 

The material collected "by the ahove procedure was gener- 
ously supplemented hy informa'tion collected from other soturces. 
The Birmingham hearing elicited a great volume of evidence, which, 
although highly controversial in character, was .very suggestive and 
helpful to the investigators. Subsequently, commissary and independ- 
ent store managers, lahor leaders, and the lahorors themselves were 
interviewed in all commonities visited by the investigators. 

In view of the great similarity in the method of using 
scrip and in its social and economic effect, and in view of the 
repetitious character of commonity appraisal of the practice, the 
investigators are convinced that the prohlems arising out of the 
use of scrip and pertinent' to the question at hand vary not signi- 
ficantly from industry to industry and community to comraanity. The 
Committee helieves that on the points investigated a. representative 
sample of data has hoen secured. 

A suLiraary of the findings of the field investigators is 
set forth in the following sections: 

(1) Compulsion 

The question as to the effect of the use of credit "based 
upon charge-, over payroll (in the form of scrip or otherwise) upon 
the freedom of lahor has heen so energetically dehated that it has 
"been regarded , as meriting special consideration in the present study. 



16224-59 



Public sent imeilt opposes any compulsion on employee to 
trade at the company store. Some cases of compulsion or intimida- 
tion were foimd, tut these were exceptional. (Arkansas, South Caro- 
lina, Kentuclcy, Teilhessee,'West Virginia.) 

, Cases of energetic solicitation of patronage "by the comr- 
missary manager with the insinuation that a man should trade with 
the employer who gives him- a joh were found.' In some such cases 
the difference hetween defensible business practices and coercion 
is indistinguishable; whether or not the 'company would discharge 
the laborers if they refused to deal with the company store is of 
no importance so long as the laborers interpret the insinuations as 
a threat to their jobs and are- afraid to deal elsewhere. Moreover, 
the necessities of an impoverished or improvident employee may be 
as effective as coercion would be in causing him to trade at the 
company store, where alone he" can secure an advance against his 
pay. - ■'■■'" 

Freq.uently the time that is allov/ed to elapse between one 
pay day and the next- is disproportionately long relative to the 
low wages paid. In some cases wages are paid tv/ice a month: for 
example, on the nearest Saturday to the 15th and 30th of the month. 
This means that should operation be continuous through the year, 
which would be rare, at least four times during the period the la~ 
borers would have to wait three weeks between pay days. Coupled 
with this schedule of pay days is the practice of holding back the 
entire amount earned during one pay period in order, it is alleged, 
to allow adequate time for compiling the payroll. This means that 

16224-60 



a latorer who starts to work on the first of the month is ■bound to 
QO at least four weeks, and in some cases five weeks, hefore receiv- 
ing any cash. Under the circiiinstances, if a laborer is ahle to pay 
as he goes during the first long wait, it is extremely unlikely that 
after deductions are made as a matter of custom for house rent, fuel, 
lights, insurance, hospital, and doctor, he will "be ahle to finance 
the next period which will elapse 'before he again is paid. His only 
recourse is to apply for scrip or credit on T,ages already earned, 
and in return agree to have the coiiipany deduct such amounts from 
his pay envelope before he receives it. When such an arrangement 
prevails, the enipl&yer, in conformity with good business principles, 
is loath to set end credit that is to be utilized for tiie advantage 
of his cOuTpetitor, and as a general rale it is necessary for a wago 
earner to trade his credit wages for provisions at the commissary 
of the employer. 

It is customary to maintain the same wage-payment sched- 
ule whether or not the industry is operating regularly. ILien work- 
ing time is' curtailed to from one to three days a week and wage pay- 
ment is held back as imich as two weeks, the v/orkers cannot avoid de- 
pendence on credit. 2/ Frequently the investigators witnessed the 
spectacle of miners emerging from the mine, proceeding directly to 
the comnissary, and waiting in line for the payroll to arrive. As 
soon as each miner's record was checked, the miner received his total 

1/ In the Textile Industry wages are customarily paid every seven 
days, with one pay period held back. This system tends to ameliorate 
some of the worst effects; of scrip, but when irregularity of opera- 
tion is considered, the distinction between the effect of the use of 
scrip in tho Textile Industry and other industries becomes largely 
a matter of degree. 

16224-61 ■;■' ■■' ' 



earnings in scrip, which he immediately exchanged for groceries. 

In some instances commissary managers explained that a 
number of laborers were in perpetual debt to the commissary. In 
such cases if these laborers ever receive any cash it is at the 
discretion of the management. In one plant it was claimed by the 
laborers that there were three workers v/ho had not deceived any 
cash in the last fifteen years (South Carolina), One case was en- 
countered in which the company had not even gone through the for- 
malities of having a cash pay day in the last two years (West Vir- 
ginia) * 

The practice of charging all the laborer's expenditures 
from his wages before he receives them tends to render it impossi- 
ble for the laborer to establish any credit contacts outside his 
employment. Independent merchants cannot reasonably extent credit 
on the secondarjr claim to the wages earned. In event of a labor 
dispute the employer has the power to discontinue wages entirely, 
and as an added weapon he may render it impossible for the laborers 
to receive what credit their reputation for diligence and honesty 
might assure them under other circumstances. 

It is difficult at times to distinguish betv/een compul- 
sion which determines where an individual shall buy and compulsion 
which determines what he shall buy. It is interesting to note in 
this connection that in some sections of the country one of the most 
frequently expressed defenses ifiade of the use of scrip is that with- 



ly On one occasion a ^Jiiion official reported the use of scrip as a 
weapon for fighting the union (ViVf^inia) . He held that when the men 
were working part--cime; and consequently handicapped in securing ade- ■ 
q.uate provisions, company officials would point out to the men indi- 
vidually that if they should withdra.'/ their union cards they would thus 
save $1.00 a month, (the amount of union dues) and at the same time be 
in a much more favorable position to receive scrip on the credit from 
the company, 

16624-62 



out its use the laTDoters would squander their wages for liquor or 
poolroom entertainment, or spend it with croolced peddlers, or lose 
it in gamlDling. 

Wliile a certain measure of control is doubtless uiade possiTale 
"by the mere fact of the close coanoction "between the rrPiispary store and 
the operating company, the possihility of estending such control is in- 
creased hy present credit' practice. T/ith a large proportion of the la- 
horers forced hy circumstances to use some form of credit, the tooks of 
the company immediately reveSvl the total wages received hy each indi- 
vidual and the exact amount spent at the commissary. This is particul- 
arly true in cases, whicli are not at all rare at present, where 90 to 
99 per cent of the commissary "business is done on a scrip or credit hasis. 

(2) Prices 

The institution of credit "based upon charge over payroll has 
"been subjected to the charge that it is a device for reducing the la- 
"borers' real wages "by charging exor"bitant prices for the merchandise. 

In investigating this coniplaint a detailed study was made of 
the prices charged "by 102 representative cor.imissaries and 85 independ- 
ent, privately owned stores. In a vast majority of the cases the pri-o- 
cs . charged "by a commissary T/ere compared with the closest independent 
competitor rendering compara"ble service, such as extension of credit, 
delivery of merchandise, etc. in order to taice into account any unusual 
"business expenses which might occur "because of location or other reasons. 



16224-63 



The list of conmodities for which prices vteve obtained by 
the Committee were taken from the Coal Corai-aission' s study of 1932. This 
earlier study included in its list those products which were most 
appropriate, 'because of their importance in consumption habits of 
the laborers who depended on the commissaries. In the Committee's 
study certain items were eliminated because their relative Tin- 
importance did not seem to justify the expense of tabulation. 
Other variations were made in the list from time to time, due to 
the highly seasonal character of some of the products. Scrupulous 
care was exerted to take into account variations in trade brands 
and quality and in instances where insufficient data were obtainable, 
or where any doubt arose as to comparabilitj'- of brands or grades, 
the items involved were eliminated. 

In view of the fact that the investigators found so little 
difference in the general cliaracter of commissaries operating in 
different industries, a geographical Tather than an industrial group- 
ing has been employed in analyzing the data. It happens, however, 
that in Ilorth and South Carolina, only commissaries connected with 
the Textile Industry were visited. The price studies of other sec- 
tions include for the most part, prices prevailing in commissaries 
connected with coal mining, although the prices charged by a few 
commissaries in the steel, lime, and lumber industries have been 
included. 

The accompanying tables s^umraarize the price data which 
were collected. In the opinion of the investigators, the most 
reliable and sriggestive summary figure is the one arrived at by 

16224-64 ' 



weighting the average prices charged ty the coirmissaries and the in- 
dependents by the relative inportance of the different items in the 
dietary hahits of the consumer as determined in 1932 'by the study 
made by the Coal Commission, In order to analyze the data for sec- 
tions not covered by the Coal Commission, the weights of those geo- 
graphical areas which appear to be most appropriate, due to simi- 
larity of the habits of the people, have been employed. Thus the 
Connellsville v;eis;hts were used for Marion County, West Virginia; 
the New Eiver weights were used for Mingo and Logan Counties of West 
Virginia, and also for eastern Kentucky, western Virginia, and east- 
ern Tennessee. Alabama weights were used for North and South Caro- 

1/ 
Ima, — ' 

The average commissary and independent store prices were 
multiplied by the appropriate weights. The resulting figures were 
totaled and the percentage difference in these totals was calculated. 
By this method it is possible to arrive at a figure which indicated 
the a.verage difference in prices charged according to thb relative im- 
porta,nce of the various commodities in the diet of the laborers and 
their families. 

It will be noticed that the average prices charged by the 

commissaries, for all the items weighted and collectively considered, 

were higher than those charged by independents in every area studied. 

The range of difference varies from 2.1 per cent in the case of Vir- 

ly For the method by which the Comjnission arrived at these weights, 
see the U. S. Coal Commission reiport, op. cit . , pp. 1575-78. The in- 
vestigators have found that precise acGura,cy in the weights is unim- 
portant. It is sufficient that the weights give approximately the 
correct ratio of any one coiTiraodity to the total of all commodities 
consumed, ; 



16224-65 and 'o^ 



s 
§ 







1 






CQl 
















to 








+= 
















P3 






CO 


PI 
















o 






Q) 


iH 1 0) 
















•H 






O 


Cti nC CD TlJ 


K% 


t^ 


CO K^ 


^ 


CM 


i-H rH J- 




-P 






•H 


pi -P Xi n 
















o3 






fH 


CT'-H rt (U 
















-p 






Ph w 


M & n P 
















o 






(D 


















■X 






>. !^ 


















■o* 






-P O 
























;^^ 


CO 
















2 






-p 
















A 






o 


fl a 
















-p 






r3 •>- 


■ H 1 CD 






















S f!" 


u <a <Ti 
















CM 






O cS 


<D !=l nd C 


O 


rH 


rH ir> 


o 


J- 


C\J CM rH 










O ft 


[T 05 C (D 
















Q) 






S 


O ^ M Ph 
















'-^ 






ch o 


1^ -P 
















& 






o o 


















g 






!-i S 


C k 
















CD CO 






CD -H 


Jh -H CD 
















r-^ _ 






^ 


0) Pi CO 
















Ph pi 






^ 


^ rt CD -P 


■vD 


r^ 


ViD \C\ 


U3 


vr> 


CO .:d- t-- 




S -H 










C\J 


C\J 


r-\ C\J 


H 


Ol 


CM KACM 




to ... 




CO 






W -P l-H "Ci 
















j:t 




F^ 






















,^ ro 




S 




CO 
















o o^ 




O 




-P (D 
















tti rH 




EH 




CD CD ,-*- rt O 
















<D 




W 




EiO O In 1 CD -H 
Cti S O -^vti f-i 
















PI t-^ 




Eh 




-P CD f! fin 


CT^ 


r- 


|V->VJD 


^ 


H 


Lr>vr) iH 




■ H CM 


^ 


1^ 




ri fH O ^ (D 


t 


« 


• • 


• 


• 


• • • 




^ 1 


l-l 


1 




(D ta > O Ph CD 
O «H O iH CD Jh 


\r\ 


t~- 


cvi r^ 


o 


CM 


^ J- r- 




e CM 

CD CM 


CO 






Jh tH ,jO CD i:i O 
















-P 


p 


r-r"i 




QJ -H <ll m f! -P 
















•H g 


o 


|1h 




PL, O l-H CO 
















g 


1 






















v^ 






■p 
















o 


n=j 


hM 






rt w 


o 


^ 


CM r— 


r^ 


O 


oj ^- r^ 




«* 


o 






CO 


1 CD CD 


^ 


o 


r^H 


^ 


r-- 


^ rH CO 




&^ 




!^ 




fH (D 


CD '-J f-i 


r^ 


UD 


O O 


^ 


to 


O^ LCA CM 




w 






O O 


ti rt O 


• 


* 


• • 


• 


• 


• • « 




rj .H 


w 


1-H 




Xi .H 


Pi CD -P 


H 


i-l 


^ cr. 


r-H 


rH 


'^D O \C\ 




Pl 


B 


Ph 




CD CD !h 


M P to 


^-H 


^ 


J- K^ 


K^ 


J- 


rH ^ ro 




P CD 


h— 1 


s 




-P -P Ph 


















O Pl 


p^ 


n 




rj ^ 


>? 
















Pl 


K 


S 




tuD fc.O CD 


Pi CO 


LTn 


CM 


H CVJ 


l.C> 


H 


t^O> C3^ 




«H (D 




3 




O -H bjO 


(A CD 


H 


rH 


t-- K> 


ITN 


r^ 


o ^13 r— 




j:^ 


t-:) 


1— 1 




^ (D c\3 


P fH 


CVJ 


to 


O ^ 


1^ 


r— 


r— r^o 




to -P 


1—4 






t>J3^ fH 


S o 





• 


• • 


■ 


• 


• • * 




Pl 


^ 


s 




^' ^ 


O -P 


J- 


^ 


m o 


^ 


CM 


[^ c\j t-- 




O SlOJ- 






O CO 


^ 


^ 


J- ^ 


r<^ 


^ 


rH^ CM 




■H Pl r<^ 


Pi 


(-1 




< 

CO 


•p 
















■P -H CTi 
03 P, rH 


P<H 


y-— . 




0) 


Pi CO 
















o t:! - 


o 


5 




O 03 


I (D CD 
















cr* PI K> 


fg 






-p — 


Ti p: O 


^ 


r— 


UD CO 


^ 


M 


O LTN O 




CD I 


o 


CO 




CO 


S « +^ 


r-\ 








l-H 


r-\ r-\ r^ 




tH ^ CO 

O 13 CM 

H-> 


to 


S 






H Ph CO 
















^ 


o 

Eh 




O -P 


















Pl !>s 
(D CD rH 


s 


CO 




U O 


P! to 
















rQ Pl d 


'si 






CD Q- 


c3 (D 
















q <1> "-3 


s 

o 


1 






Pi Ph 
G O 


^ 


CA 


I— to 


U3 


iH 


O CO O 










O -P 


H 








rH 


rH CM H 




rH ""C 




§ 






O CO 
















+= o 

CO CD -H 




O 
o 








-P 














0) rH Pl 

'--1, & S 
to q Pl 








o 














•rt Cj 








•H 














^ to CD 








^1 














A 








■P 














0) Pl -P 








03 










Pl 




A -H ^ 








•H 










CD 




-P ElO 








n 










■ -H 




ents 

,tions 

durin 








cj 


"2" 




a> 




•H ^ 








-p 


W) 


^- 




CD 


o3 


Pl CD -P 




to 03 






CJ 


S^ 


• • 


to 


•H 


-P 1^ CJ 




CD -P p! 






•H 


•H 


o 


o3 


to 


PI 


CO .H 




P< O 






fH 


s 


;=! 


Pl 


CD 


•H 


03 -H Td Pl 




(D CJ* TO 






-P / 


Pi 


+:> 


•H 


PI 


flO 


•H R Pl -P 








TO 


•H 


Pl 


rH 


Pl 


Pl 


Pl o3 to 




Pl -^ 






■H 


m 


CD 


O 


CD 


■H 


•rl -P -H 




(U 






R 




M 


OS 


EH 


> 


t>fl Pl 03 O 

Pl o .a 




to O CD 
•H -H Pl 








Oj 


s 


O H CM 


Pl 


Pl 


•H S 13 O 




-^ ^ g 










Pl 




Pl 


Pl 


> Pl Oj tlO 




EH Ph & 








o3 


0) 


^ • • 


(D 


(U 


•d S ^ 












^ 


+:> 


-POO 


-p 


■p 


-p ni CO -H 












15 


CO 


pi !s; 13 


to 


to 


CO Fh W S 




^ — V • — s. 








^ 


03 


o 


<g> 


a) 


CD 




o3 ^ 






1 








H 


CO 


H 


^ 


^: 




'-'"-' 



1622U-66 



ginla, to 10.4 per cent in the case of Tennessee, In other words, 
a la-horer who "buys all his food at a cormnissary in the Virginia 
area studied would on the average pay 2.1 per cent (in Tennessee, 
10.4 per cent) more for his food supply than if he "bought the same 
cominodities at a neighboring independent store. — ' 

Economic and Social Implications 

In, cases where an employer operates a commissary, this 
difference in prices indicates that besides using his position as 
an employer, he is also conducting a retail business^' and is in ef- 
feet using his dual enterprises to reclaim wages that otherwise 
might be retained by the laborers. 

The same result is frequently achieved by selling the com- 
missary rights to outsiders for a percentage return on the sales made 
for scrip or othdr types of credit. l,fhile the contractual arrange- 
ments entered into with outsiders with regard to the commissary con- 
cession, with exclusive privileges of issuing "charge over payroll 
credit" are not uniform, in the cases investigated the payments to 
the operating company vary from 5 to 10 per cent of the sales made 
on such credit. 

There are many variations from the exclusive proprietary 
and concessionaire commissaries. It is not uncommon for the com- 
pany to operate a commissary and issue "non-negotiable", "non- 



TJ Although many comrAissaries are members of commissary chain, the 
comparison as stated above was made priraa?rily with independent store 
prices. A limited study. of chain, store prices indicated that if ehain 
stores had been included, the difference in prices would have been 
larger. 



16234-6"? 



traxtsferatle" scrip and then arrange to accept suoh scrip at its 
face value from anyone who may present it in exchange for commo- 
dities. In such cases, independent merchants freq.uently accept 
scrip for staple products which yield a substantial profit and 
then sacrifice a part of this profit by exchanging the scrip at 
the commissary for tobacco and other low profit commodities which 
they intend to sell later for cash, 

A n-umber of cases were found in which the operating ■ ' 
company followed the practice of redeeming the scrip from inde~ 
pendent stores at a discount of from 5 to 20 per cent (Alabama, 
Kentucky, West Virginia), IriThenthis practice prevails, independ- 
ent stores may maintain two sets of prices: one a cash price and 
the other a scrip price, with the former averaging from 10 to 15 
per cent lower than the latter. In spite of the loss involved, 
many of the laborers prefer to discount their scrip and trade with 
independent stores. 

A few instances were found in which the operating com~ 
pany did not maintain a commissary at all but allowed its scrip 
to be accepted by all the independent stores in the coram-unity 
(Alabama, Zentuclqr), In some such cases the independent stores 
accept the scrip at its face value and redeem it in cash with the 
issuing company at a discount, ranging from 5 to 10 per cent. In 
one community this practice was so well established that scrip was 
readily accepted even by the wholesale and jobbing houses located 

in the region (Kentuclqy) . — ' 

1/ When the issuing company permits outsiders to accept scrip and then 
redeem it in cash at a discount, either at a regular rate or in the form 
of higher prices, the burden may be to some extent divided between the 
laborers and the coomuiiity at large. But in any event it is fairly ob- 
vious that the company is using its position as an employer to levy a 
charge against the community. 

16224-68 



In practically every community visited, another type of 
scrip discounting was found. Regardless of the completeness of 
the service rendered, by a well-stocked commissary, there ;re cer- 
tain services which the commissary does not customarily supply the 
lahorers. Included among these E.re medical services, services of 
a garden plovman, payment of labor organization dues, of insurance 
premiums, etc. In order to secure funds for these purposes it is 
customary for the laborers to discount scrip for cash at a loss, 
which varies normally from 15 to 25 per cent and occasionally more. 
In some communities the traffic in scrip is casual or incidental 
in nature, while in others, it is regular and considerable in amount. 
In some of the latter cases, better paid employees make it a regular 
practice of taking advantage of the improvidence or misfortune of 
their fellow employees rOid, by buying scrip, m.anage to secure the 
bulk of their provisions at a substantial discount (Alabama, North 
Carolina, South Carolina). ~ 

It is the conviction of the investigators, based upon the 
information gathered, that only a relatively small amount of scrip 
is currently issued for unearned wages. When scrip is thus issued 
it cannot be rightfully regarded as an act of charity.—' An em- 
ployer who anticipates a resumption of operations in the near future, 

ij Where discounting is actively discouraged by the store, employees 
in need of cash draw as much as they can of their pay in cigarettes, 
sugar, or some other marketable commodity fOid sell it, usually at sai 
even higher discount. Legislation aimed to prevent discounting might 
furnish some measure of protection to the employee but would not re- 
move the condition which impels him to sacrifice from 15 to 20 per cent 
of his ^sy as compared to what he" could get m^i waiting tvra weeks. 
2/ There are some exceptions to the above rule. Some employers have 
assumed a great responsibility toward their employees and have been 
generous in the extreme, 

16224-69 



has a business interest in l<;eeping his lahor force intact. He is 
always in a reasonably good position to determine to just what ex- 
tent he can afford to continue to advance credit profitably. Losses 
on this account have been surprisingly small even during the past 
few uncertain years. — ' One case vras encountered in which the em- 
ploying company had advanced scrip to the amount of approximately 
$100,000 and collected back out of wages, the whole amount with th.e 

exception of $66.00 (Alabama). This was a small price for maintain^- 

2/ 

ing a labor force during a period of an unusiaally long shut-down. 

The argument that a larger number of days' hold-back of 
wages, is necessary in order to permit the compiling of the payroll, 
seems untenable. -' in a vast majority of the cases investigated, 
the payroll was calculated every daj'^ and the laborer was restricted 
in the amount of scrip he coiild draw, which was not to exceed his day's 

l/ See section beloiv entitled: "Analysis of Questionnaire". 
2/ The company does not always accept responsibility in making relief 
advances. One case was encountered in which the employing company was 
not operating regular ly and many families were destitute. Federal re- 
lief was asked for and after much difficulty, 16 families were placed 
on the rolls. The local union arranged with the company store to sup- 
ply food for the other unfortunates. In the arrangement, the store 
manager demanded that the bill must be paid by the employees, within 
60 days, and in case some could not meet their obligations, the local 
union woiild have to talce the responsibility and settle all the debts 
within 60 days. The families on relief were allowed $1,00 to $1.50 
per week (West Virginia) . 

3/ In the railroad industry, with a large nunber of employees scat- 
tered over a- much wider territory, it is found possible to compile the 
payroll with much greater promptness than in many other industries iit- 
vestigated, "Wages are paid by all these railroad systems (Southern 
Railway, Chesapealce and Ohio, and the Seaboard Air Line Railway) to 
their employees, every two weeks, and there is no hold-over period ex- 
cept for the few days required to effectuate the necessary accotmting 
(which is believed to be less than a week in all instances)." Memo- 
randum of Fitzgerald and Company, 



16224-70 



earnings. In one' case, scrip was written out and .signed every day, 
whether or not the laborer called for it. If he allowed his scrip 
to accumulate unclaimed until pay day, (at least two weeks hence) 
he could receive the total value of such scrip in cash. If he so 
chose, he could receive cash immediately for the scrip to his credit, 
hy accepting a 10 per cent discount from the company (Alabama). 

' The investii^-ators concluded that geographical isolation 
is no longer typical of the company store. The questionnaire gives 
a representative cross-section of the facts in this regard, and the 
fpjidings of the investigators agreed with the results of the question- 
naire. 

While there are many coal "creeks" and some mill towns in 
which the company stores, of one or several companies, are the prin- 
cipal source of supply for the community, there are few comrauiities 
which are not also supplied with independent stores. Good roads, 
the prevalance of automobiles and local "taxi" service and delivery 
service by independent stores, are other means by which the factor 
of isolation has been made less important. The contention that the 
company store is a necessity to the community, no longer has the 
force it possessed before recent advances in transportatiion and com- 
munication. 

It is believed by many of those v/ho operate company stores, 
and the industries to which these stores are an adjunct, that large 
numbers of the unskilled classes of employees are unable effectively 
to order their own affairs and that the close supervision and control 
of credit exercised by the company store, serve to prevent the impul- 

16224-71 



sive or foolish squandering of the worker's wa,ges. It is ■un- 
questionably true that many workers are illiterate and inexper- 
ienced in the handling of their money. The irregularities and vicis- 
situdes of employment which characterize many industrial operations 
in the hest of concerns and which were douhly severe at the? time this 
investigation was made, certainly impose upon the employee a turden ■ 
which he cannot carry without the help of the employer, the State, 
or some other agency. From the standpoint of the employer, some pro- 
,,vision for enabling his employees to bridge the gaps of unemploy- 
ment is the ^necessary price of maintaining a stable and competent 
working force. Undoubtedly many employers regard this obligation 
not only as a business necessity, but as a moral responsibility, 
which they faithfully discharge to the extent of their resources. 

The assumption of a paternalistic responsibility carries 
with it, however, certain implications, among which, in the judge-(> 
ment of this Committee, is a responsibility to see that the employee 
who confides in this responsibility, receives treatment at least 
equal to what he would receive from those professing no such re- 
straining relationship. 

. There is room also for question as to the social desira- 
bility Qf extending a paternalistic relationship beyond the miniminns 
unavoidable in the situation. The system of credit tends toward a 
minute supervision over the economic affairs of the employee. The 
employee who surrenders the management of his affairs to the employer 
is denied to tlaat extent responsibilitjA which educates him in self- 
reliance and ecoiioinlc coiqpet"fen9§,i^^ ' . 

16224-72 



lindoubtedly such aduoation in self-reliance should "be a 
gradual rather than a sudden process, "but that fact is not an argu- 
ment for the indefinite pcsbpcncment of the beginning of the pro- 
cess. The intiraato relationship between econoinic independence and 
competence constitutes a potent argument for the social and econo- . , . 
mic desirability of such a process of education by experience. 

It is inevitable that, where a free choice is not afford- 
ed, the chooser will claim excessive prices aad discimination, even 
though they do not really exist, and will exaggerate such inequali- 
ties. The observations of the Committee indicate that many features 
of company store operation most frequently objected to in the past, 
are no longer as common, or as severe, as they once were. In some 
industries, collective agreements afford the employees a protection 
which some believe to be adequate so long as these agreements are in 
force. ^ 

On the other hand, the Committee found numbers of workers 

who regard the company store with fear and suspicion, complained of 

2/ 
high prices, of poor quality, and of arbitrary treatment. The at- 
titude toward the store varied from cummunity to community. Many 
stores have the confidence of practically all the employees; of others, 
the reverse is true. 

1/ Letter from U.M.lO, ' ~ ' — — 

2y The community aprraisal of the company store is revealed in many 
interesting ways. Maoy laborers trade regularly with the commissary 
with satisfaction and no inclination to trade elsev/here. There are 
other laborers who r-jsent the commissary and who will suffer great 
inconvenience to avoid patronizing such a store. The attitude of cer- 
tain laborers is indicated by the vivid terms which have been coined 
for describing the coirmis caries. In regions where they exist, it is 
not unusual to hear them referred to as "gip-me-stores" , "pluck-me- 
s tores", "gip-joints" , and " robbers ar ie s" . Similarly, the scrip is 
commonly referred to as "clackers", "lummios", "jay-flips", "doollums'L, 
and "dugaloos". 

16624-73 



The company store, as compared with the average independ- 
ent in the small community, can ustially htiy in larger quantities and 
enjoys a "better credit rating and the protection of larger financial 
resources. The right of collection over payroll reduces its credit 
losses even in tad years, to small dimensions. It usually enjoys a 
preferred location on company property, and is convenient to the em- 
ployee. It has special advantages of acquaintanceship, and of sup- 
port and advocacy "by the officials of the operating property. With 
all these advantages, over the independent, which should insure a 
profit where the independent shows a loss, if the efficiency of opera- 
tion is comparable, there seems to "be- no reason why the company store 
should fear to meet the independent store in free competition. Such 
competition seems to furnish the only possible check on the tendency, 
still manifest in many company stores, to maintain their food prices • 
higher than those of independent stores. 

In concluding this section of the report, it is probably 
fitting to point out that some of the featiores of the company store 
system are inconsistent with policies by the National Recovery Ad- 
ministration. Tlirough the use of scrip and other credit devices, 
in conjunction with prices established in the company store, it is 
possible for the operator to substantially invalidate wage provisions 
and agreements included in the codes. 

1/ One dealer explained that if nothing was done to limit the acti- 
vities of the company store, a ntimber of the limber companies had de- 
cided they weuld reestablish commissaries in order to offset the in- 
crease in wages which had resulted by the minimum wage laws (Alabama). 



16224-74 



By its control over the expend! tiires of its laborers, the 
company operating a commissary may substantially limit the protec- 
tion which competition might afford the consumer. Such a limitation 
upon the possible effect of competition seems to be in sharp conflict 
with the principles of fair competition advanced by the Consumers' 
Advisory Board for the protection of the consumer. 



16224-75 



Analysis of Questionnaire 

In the early part of Aio^Tist, about 4,000 questionnaires 
were sent to the industrial estahlishments that comprise the mail-, 
ing lists of the National Coal Associations, the National Lumber 
Association and the Mill Stores Committee of the American Cotton 
Manufacturers Association and the STational Industrial Stores Associa^ 
tion. This procedure of circularization involves some duplication 
and therefore makes difficult the calculation of the coverage of this 
questionnaire. Because of the necessity of completing the report at 
an early date, only those questionnaires which were received by the 
Bureau of the Census prior to September 6 were tabulated and analj'-zed. 
On that closing date, 1,575 questionnaires were returned, of which 961 
were found to be usable, while 576 contained some statement to the 
effect that they never have operated a company store or that they did 
not now operate one. The remaining 38 questionnaires were not tabulated 
because they were inadequately filled out. Thus, 38 per cent of all 
the questionnaires sent out have been accounted for at the closing date. 

The Census of Distribution, 1929, reported statistics for 
1,338 company stores distributed among 36 states. This enuneration 
seems an understatement since the national Industrial Stores Association, 
a trade association devoted to the interests of the company store, 
claims a membership of more than 1,500. The number of company stores 
in the United States may be conservatively estimated at 4,000, Accord- 
ingly, the sample here analyzed represents some 24 per cent of the total 
nximber of stores, 

16224-76 



Of the 9(31 stores, 68.5 per cent serve the -bituminous coal 
industry; 16.7 per cent are OT)eratecL by the lumber industry; and 9.5 
per cent, by the Southern textile industry. Four per cent of the 
stores are distributed among the anthracite coal, copper mining, and 
iron and steel grouDS. The remaining percentage , 1.3, is acaounted 
for by a miscellaneous group composed of heavy chemicals, naval stores, 
and brick-making entesrprises. Twenty -eight states, exclusive of those 
allocated to the category of "all others," are represented (See Table II )■ 

The returns from the bituminous coal fields were concentrated 
in the states of West Virginia, Pennsylvania and Kcntu.r.'ky r la each 
of three other states producing bituminous coal - Alabama, Virginia 
and Tennessee - the returns represent a little over one per cent of 
the total naamber of 658. This total compares fairly well with the a.?9 
company stores recorded in the Kejystone _Coal.J3ire_ctoryj 1932_» 

The returns for the liomber industry are rather evenly distrib- 
uted among 16 states. The total of 161 is to be compared with the 296 
returns from 28 states submitted to the National Lumber Manufacturers 
Association in its survey. 

The 91 textile commissaries 'that reported are all from 
southern states, chiefly from South and North Carolina and from Georgia. 
The sample used by the Mill Stores Committee of the American Cotton 
Manufactures Association, and upon which its brief to this Committee 
is based, is 57 commissaries or company stores. 

The population l/ served by this sample of 951 stores in 
about one and one-half millions. This estimate is arrived at by use 



]^/ Statistics concerning company store activities are for 1933 un- 
less otherwise stated. 



16224-77 



TA5LE II 
EISTHISU^IOII OF 951 CCiviPMx STOHES Ji li^l/uS^riff atHj Hi So^Ii;. 1^34 





Wumher 


Percent- 


- ■■■ — — - — ■ ■ 


iTuinher 


percent- 


Industry and State 


of 


age of 


Industry and State 


of 


age of 




Stores 


Total 




Stores 


Total 


Anthracite Coal 


10 


1.0 


Lumber 


151 


16.8 


Pennsylvania 


10 


1.0 


Alabama 


7 


.7 








Arkansas 


9 


.9 


Bi t-omiiious Coal 


558 


58. 5 


California 


16 


1.7 


Alabama 


37 


3.9 


Florida 


8 


.8 


Colorado 


5 


.5 


Idaho 


4 


.4 


Illinois 


4 


.4 


Kentucky 


4 


.4 


Kentuc!ky 


100 


10.4 


Loiii si ana 


17 


1.8 


New Mexico 


5 


.5 


Michigan 


7 


.7 


Ohio 


9 


.9 ■ 


Mississippi 


6 


.6 


Pennsylvania 


161 


16.8 


Oregon 


16 


1.7 


Tennessee 


13 


1.4 


South Carolina 


4 


.4 


Utah 


5 


.5 


Tennessee 


3 


.3 


Virginia 


33 


3.4 


Texas 


19 


2.0 


Washington 


6 




V/ashington 


12 


1.3 


West Virginia 


263 


27.4 


West Virginia 


12 


1.3 


Wyoming 


3 


.8 


Wisconsin 


4 


.4 


All Others 


8 


.8 


All Others 


13 


1.4 


Copper 


4 


.4 


Textile 


91 


9.5 


All 


4 


.4 


Georgia 


19 


2.0 








North Carolina 


23 


2.4 


Iron and Steel 


24 


2.5 


South Carolina 


43 


4.5 


All 


24 


2.5 


All Others 


5 


.6 








Miscellaneous In- 


13 


1.4 








dustries 












All 


13 


1.4 



15224-78 



of the employment data of the parent company that were reported by 
tne questionnaire. Tne number of employees on the payroll of the 
parent company on the fifteenth of March, June, October and December 
was requested. The nighest of tnese quarterly employment figures 
on each questionnaire was aggregated and the resulting total 329,944 
multiplied by five to obtain a rough estimate of the siz« of the 
community served. Although the size of the family in regions v/here 
tne company stores are prevalent is probably well in excess of five, 
nevertheless it may be regarded as a reasonable multiplier since it 
is common for more tnan one memoer of the family to work for the 
same employer. Thus, if the estimate of the total number of company 
stores be accepted and if tne increase in the number served by pro- 
portionate to tne increase in the number of company stores, the wel- 
fare of upwards of 6,000,000 people are affected by company store 
activities. This may serve to indicate the importance of the problem 
presented by the company store. 

Tne relationsnip between tne company store and tne parent 
company are of tnree types. Tne store is either operated as a depart- 
ment of tne parent company or as a subsidiary corporation or is owned 
by persons not connected with tne parent company but who have a con- 
tract witn the latter in order to secure the right of collection over 
payroll. The store operated as a department of tne parent company is 
the most common type of relationsnip in tne cnief industries operating 
company stores. In the bitunainous coal industry the percentage of 
sucn stores to tne total serving tae industry is smaller than the simi- 
lar percentage in tne lumber and textile groups. Of the Pennsylvania 
stores reporting 41.5 per cent are operated as subsidiary corporations. 

16224-79 



TABLE 1. 1 1 



PERCEHTAGB' PIS TBI BUT I OH 01 961 COI\gAITY STORES BY 
TYPES OE' ST ORES . CLASSIEIED BY IimUSTRY. 1954 



Industry 


Parent 
Department 


Company 
Subsidiary 


Privately 
O^vned 


All 


Anthracite, Coal 


72.4 


15.7 


11.9 


100.0 


Bit-uminous Coal ' 


' -65.0 


20.5 


13.4 


100.0 


Copper 


25.0 


75.0 


>. 


100.0 


Iron and Steel 


■ • 91.5 


4.S , 


4.2 


100.0 


Iiumber 


93.0 


3.8 


^7, r> 


100.0 


Textile 


' 80.7 . 


■ 2.3, 


. 17.0 


100.0 


All Others 


76.9 


7.7 


15.4 


100.0 



15224-80 ' 



Tnirty-four per cent are privately owned and under contract and 24 
per cent are operated as departments of the parent company. 

Information on the proximity of competitors was requested 
in order to determine the validity of the argument that company stores 
are necessary "because they serve isolated communities. Of the 951 
stores supplying this information, 55 per cent indicated that they 
have competitors within half a mile; almost ■ three-quarters, or 72 per 
cent, are located witJriin one mile of the company store. An additional 
12 per cent are 1.1 to 2.0 miles distant and 95 per cent are within 
a radius of 5 miles. It is the observation of the field investigators 
that, if an independent store is within five miles of the company 
store, the community so served can not well be considered isolated, 
especially in view of the independent's willingness to deliver mer- 
cJiandise over unimproved roads to sparsely settled camps. Of the 51 
stores beyond tne five-mile radius, 39, or 53 per cent, serve the 
lumber industry wnicii by its very nature would involve considerable 
isolation. 

In tne bituminous coal fields the distribution of company 
stores by distance from nearest competitor is similar to that for 
all stores. In the lumber group, nowever, tnere is evidence, as in- 
dicated above, of greater isolation. But even in tnis industry, 50 
per cent of tnese stores nave competitors witnin one mile, and in ^ i 
only 20 per cent of tne cases tne nearest competitor is over 5 miles 
distant. Among the stores of tne cotton mill villages, tte re is 
little evidence of .genuine geographic isolation, for 71 per cent have 



16224-81 



TABLE IV 



PEECEUTAGE DISTEI3lj;gI0I-I OP 951. COMFAITT STOH SS 
BY SPSCIEIED DISTAITQES EaOLi lEDEPEIOEI^IT STOBES. 1934 





Percentage of Comoan:/ Stores 


Having Competitors 


Iridust'iy , 


0.0 - 0.5 


0.6 -• 1,0 


1.1 - 2,0 


2.1 -. 5.0 


Over 5 




Miles 


luiles 


Miles 


Miles 


Miles 


Anthracite Coal 


' 54. S 


16.9 


11.8 


11.2 


5.3 


Bituminous Coal 


57,2 


18.3 


12.3 


10.1 


2.1 


Copper 


100.0 


» 


■^ 


■— 


_ • 


Iron and Steel 


45.8 


15 . 7 


15.7 


20.8 


- 


Lumber 


oD • *^ 


15.1 ■ 


12. 6- 


17.0 


20.1 


Textile 


.71.1 


13.3 


6.7 


5.6 


3.3 


All Others 


'83.3 


8.3 


- 


_ 


8.4 ■ 



16224-82 



competitors within half a mile, 84 per cent within a mile and 91 
per cent within two miles. Three per cent have competitors more 
than five miles distant. 

That the qualifying adjective "company" in the phrase 
"company store" is appropriate becomes evident on examination of 
the percentages of all sales made to employees of the parent company, 
in reply to this question 926 answers were received. Of this total, 
12 per cent reported that all their sales are made to the workers of 
the parent company; 45 per cent reported that piirchases "by parent 
company employees constitute from 95 to 99.9 per cent of their patron- 
age, and in 18 per cent of the stores, purchases .aade hy parent company 
workers comprised from 90 to 94.9 per cent of their total sales. Thus, 
75 per cent of tne stores transacted only to 10 per cent of all tneir 
retail business with outsiders; i.e., non-parent company employees. 
In the bituminous coal group, 82 per cent of tne stores had percent- 
ages of sales to outsiders in the same percentage range. In the iron 
and steel group, tne percentage of stores falling in this range was 
somewnat higher, 86; and in tne textile somewhat lower, 71. However, 
of the stores serving the lumber industry only 49 per cent come within 
thi s range . 

Tne restriction of the great bulk of company store patronage 
to parent company employees may be due to one or all of several 
considerations. It may well be in not a few communities that the sole 
source of employment is one industrial enterprise in which case almost 
every one in the commiuiity is either an employee of the parent company 



16224-83 



TABLE V 
PEHCEETAG-E DISTaiBUTIOW 0? 9S6 COiviFANY S TOEES ACCOETIUG TO 
SALES MADE TO COIvIPAi.T EIviPLOYEES AS PEHCEITTA&E OE TOTAL ALL SALES III 1955 







Percentage of Company Stores 


Making Speci 


.fied 




ll'um'ber 
Stores 


Percentage of i 


Sales to Coinpany Employees 


Industry 




95.0- 


90.0- 


80.0- 


70.0- 


50.0-^ 


25.0- 


Under 




Re-oortiniS; 


100.0 


99.9 


94.9 


89.0 


79.^ 


69.9 


49.9 


25.0 


Anthracite 




















Coal 


10 


30.0 


50.0 


10.0 


— 


- 


— 


— 


10.0 


BituminoLis 




















Coal 


542 


13.1 


50.5 


18.2 


11.1 


2.8 


2.6 


.2 


1.5 


Copper 


4 


- 


— 


25.0 


— 


- 


25.0 


25.0 


25.0 


Iron and 




















Steel 


22 


13.6 


38.3 


4.5 


4.5 


4.5 


— 


— 


4.5 


Lumlier 


152 


7.2 


23.0 


18.4 


17.1 


16.5 


12.5 


3.3 


2.0 


Textile 


84 


13.1 


39.3 


19.0 


16.7 


9.5 


- 


1.2 


1.2 


Mi seel Ian" 




















ecus 


12 


16.7 


15.7 


8.3 


26.0 


8.3 


15.7 


- 


8.3 


Total All 


926 


12.3 


4^1.7 


17.8 


12.4 


5.7 


4.2 


.9 


2.0 



16224-84 



or a member of the employee's hoo.seholu. Another factor may he 
the point that other than workers are free to trade at several 
stores and therefore refrain fron trading at a company store where 
prices may "be higher and service inferior than in neighboring in- 
dependents. 

A somewhat similar picture is presented by the statis- 
tics on the percentage of ootal sales made for cash, For the 954 
stores reporting this item, 58 per cent traiisacted from to 10 per 
cent of their sales in cash, and 11 per cent, from 10.1 to 15 per 
cent. Only 2.5 per cent of the stores have cash sales greater than 
50 per cent of their volujae. The residual percentages of all busi- 
ness, obviously, are carried on either by some form of scrip or by 
op en- charge account . 

Of the stores in the bit-uminous fields, 82 per cent have 

cash sales as high as 10 per cent of total business and in the 24 

stores operated by the iron and steel industry 79 per cent have cash 

sales within this range. In the cotton mill villages and lumber camps, 

the percentage of stores have a cash business of 10 per cent or less 

is 32 per cent and 37 per cent, respectively. 

TABLE V I 

FEBCSITTA&E DIST?J3UTIQE OF 954 COi.i PAIJY STOEES WITH SPECIFIED PERCSI1TAGB 
OF CASH SALES TO TOTAL OF ALL SALES. 1935 





i'lumber of 

Stores 
Reporting 


Percentage of Company Stores Making 
Specified Percentage of Cash 
Sales to Total Sales 


Industry 


0.0- 
5.0 


5.1- 
10.0 


10.1- 
15.0 


15.1- 
20.0 


20.1- 

50.0 


Over 
50.0 


Anthracite Coal 

Bit-uminous Coal 

Copper 

Iron and Steel 

Lumber 

Te:ctile 

M scellaneous 


10 

S55 

4 

24 
158 

90 

13 


90.0 
55.0 

52.5 

18.4 

23.4 

7.7 


10.0 
25.8 
25.0 
16.7 
13.3 
13.3 
7.7 


9.3 

8.3 
17.1 
14.4 
15.4 


4.9 
25.0 

4.2 
13.9 
13.3 
15.4 


3.4 
50.0 

4.2 
29.1 
30.0 
38.4 


.5 

4.1 

8.2 

5.6 

15.4 


Total All 


954 


46.3 


21.9 


11.0 


7.3 


11.0 


2.5 



15224-85 



The amount of merchandise sold on lease or installment 

account is a relatively small percenta§,e of the total sales of the 

917 coxspanj stores reporting this information. Of this ntunber, 31 

per cent report no such sales; 49 per cent report that such sales 

comprised.. from 0.1 per cent to 10 per cent; and 14 per cent report 

that such sales comprised 10 per cent to 20 per cent. The distrihu- 

tion of the company stores of each industrial group among the percent- 

age classifications is quite similar to the disi:ri Dution for all 

stores. The only exception is the cotton mill stores, \7hile 38 per 

cent report tha.t they have no lease or installment sales, only in 22 

per cent of the stores do such sales amoiont to 0.1 to 10 per cent of 

all sales. As many as 19 stores, or 22 per cent of the 85 mill stores, 

have lease sales ai'nountinf; to more tha.n 20 per cent of all sales. 

TABLE VII 

PERCSHTAGE DISTRIBUTION OP. 917 COI/iPAl'TY STOHES WITH 
SFECIEIED PERCENTAGE OE IHSTALLiViEMT SALES TO TOTAX OE ALX SALES, 1953 








percentage of Company Stores 


Industry 


Rumber of 


Ivlaicing Specified Percentage of 




Stores 
Reporting 


Installment Sales to All Sales 




0.0 


0.1-10.0 


10.1-20.0 


Over 20.0 


Anthracite Coal 


». 






■ ■ 




Bituminous Coal 


627 


22.0 


56.8 


15.5 


5.7 


Iron and Steel 


22 


38.1 


52,4 


9.5 


_ 


Lumher 


157 


61.8 


30.6 


5.7 


1.9 


Textile 


86 


38.4 


22.1 


17.4 


22.1 


Total All 


917 


31.0 


49.0 

1 -1 1 


13.5 


6.4 



This evidence indicates that with the possible exception of 
textile mill stores,, little weight, is to "be attached to the argument 
advanced "by company store operators that price comparisons should take 



16224-86 



into account the fact tiaat no carrying or finance charges are made 
on lease or installment purchases. " Since such sales are a small fraction 
of all company store sales, tne above consideration is of negligible 
importance except- in the textile fieldv^ '• " - 

Information was sought on the iss^iance of scrip and the 
use of open-charge accounts witnout the use of any form of scrip. 
Open-charge accounts are tne sole form of credit extension in 214 
company stores, or 22 per cent of tne total 961 stores. Of this 
number, 71 per cent of tne stores issuing credit only in the foiro 
of open-charge acco\ints are in the bituminous fields and Pennsylvania 
stores account for 70 per cent of the latter total. It is interest- 
ing to note tnat all ten stores operating in anthracite ' coal communi- 
ties use only this form of credit. The stores in the lumber group 
account for 18 per cent of all stores using only charge accounts and 
the textile group account for four per cent. Since' a substantial pro- 
portion of the stores (over one-fifth) use only tne open-charge 
account, it is improbable that tine sole use of scrip or of charge a 
accounts makes much difference in the operating cost of the company. 

The questionnaire sough a rough indicator of the cost of 
doing business. To tnis end, the number of workers employed by eaoh 
company store was requested; this has been given as of the week of 
July 9-14, 1934. But in absence of comparable data for independent 
stores, this comparison had to be abandoned and resort was had to the 
data in the Census of Distriubtion taken in 1929 which permit a more 
refined comparison. In this enumeration, statistics on industrial 
stores (company stores) are presented in Table 5A of Volume I of the 

16224-67 



Census of Distribution, p. 63. These statistics are compared with 
those for country general stores, of which foods average 50-50 per 
cent, in places -under 10,000 population, that are presented in Sec- 
tion D of Tahle 3 (p. 38) in Food Retailing published in the Census 
of Distribution as Retail Distribution (Trade Series). 

The comparison covers the operating expenses of 1,347 
company stores and 58,504 independent general stores. The wage cost 
(including ivll and part-time employees and manager-proprietors) as 
a per cent of net sales for the company stores is 7,6 and for the • 
independent general store, 8.7. All other operating expenses in 
company stores are 3.7 per cent of net sales as compared with 4,4 per 
cent in independent general stores. Thus, total operating costs are 
11»3 per cent of net sales in compaiiy stores and 13.1 per cent in in- 
dependent general stores. If this comparison be valid, for 1934, 
higher prices in company stores cannot be justified by claiming that 
costs of doing business are higher in company stores. 

The remainder of the usable items of the q.iiestionnaire' 
attempted to elicit information concerning those aspects of company 
store activity that more directly impinge on employee relationships 
than those already presented. One of the more important 'of such items 
is the percentage of the payroll traded at the company store. The 
numerator of this ratio - dollar sales to parent company employees - 
was computed for each schedule by multiplying the total sales for 
1933 by the percentage of such sales made to parent companj'- employees. 
The denominator is the payroll, inclusive of salaries of executives, 



16224-88 



of the parent company. The inclTision of salaries that are not 
traded at tne company store minimizes the percentage of tne 
company payroll traded at the company store. It should be realized 
also tnat tJiere are otner deductions and that the residual percent- 
ages are not indicative at all of tne amount received in cash. 

For the S12 stores that reported both sales and payroll 
figures, 29.5 per cent of tne payroll was traded at the company store. 
'the variations by industrial groups and states are in accordance with 
non-statistical evidence which tends to lend more weight to tnese 
general averages than one might be justified in giving to them. 
Per example, two stores in the antnracite fields report that only 
six per cent of the payroll is exchanged for merchandise at the 
company store. It is well known that the anthracite coal seams are 
adjacent to urban areas and tnat the anthracite miners are well or- 
ganized, botn of whicii factors militate against the full development 
of company stores. 

In tile Illinois and Onio coal fields, tne miners of which 
have been better organized than in the newer coal fields, the percent- 
age of payroll commutation is also low, 7.5 and 19.3, respectively. 
The percentage of the payroll accruing to 562 company stores in the 
bit-uminous coal fields is 33.4. Tne higher percentages are found in 
the southeastern states of the new competitive field; they are lower 
in tne states of the central competitive field and in tne states , constituting 
the western end of the crescent of the new competitive territory- 



16224-69 



[TABIiB VIII 

FEHC31TTA G E OP yiON-SCaiP-USIii& COiiPiUT S'^QR HS USIIJG 

CHAfi&E ACCOWITS 10 ALL HSPOETIITC- COLJIITT STOEES 



I ndu.s try 



BitominoLis Coal 
Iron and Steel 
Lumber 
Textile 



Total All 



To tal 
All Stores 
Heporti nA' 



558 
24 

131 
91 



9 SI 



Kvanber of 
Stores Using 
Clia ri:.e Accoimts 



152 

1 

39 

9 

214 



Percentage of 
Stores Using 
Charge Accounts 
To All Stores 



(c3» c> 
4.2 

24.2 
9.9 

22.3 



TABLE IX 



P EECEHTAGE DISTRI5UTI 01 T BY INDUSTRY Off 214 IvfOlvr^SCRIP- 
US ILTG COLyiPAITY STORES USIIIG CHARG-E ACCOUNTS. 1933 



■ -' -i 
Industr:/ 


lTuj.nber of 
Reoortin^;; Stores 




Percentage 
of Total 


Biti:irninoas Coal a/ 

Lumber 

Textile 

Other 


■153 

39 

9 

13 


71.5 
18.2 

4.2. ■ 

6.1 


Total All 


214 


100.0 



a/ 107 of the 153 stores in the 'bituminous coal industry or 
50 per cent of the total of 214 stores that extend credit 
solely by open-charge accoujits are loca.ted in Pennsylvania. 



16224-90 







TABLE X 






PEECEKTAC-E 


OF AlvINUAL 


SALES TO COiiPAi-.TY EIv^PLOYEES BY 812 COlviPAlJY 


STOEES TO TOTAL AlttTUAL PAYilOLL 0? PAREIIT C( 


Dt.iPMIES 
4.TE 




IN 1933, CLASSIFIED BY INDUSTRY MB ST. 








Percentage 






Percentage 




N^unber 


of Sales 




Number 


of Sales 


■ Industry 


of 


to Employ- 


-Industry 


of 


to Employr 


and 


Stores 


ees to To- 


and 


Stores 


ees to To- 


State 


Re- 


tal An- 


State 


Re- 


tal An- 




porting 


nual Pay- 




porting 


nual Pay- 






roll of 




V 


roll of 






Corrrpany 




S 


Company 


Total All 


812 


29.6 


Lumher 


147 


33.8 'a/ 








Alabama 


V 


39.9 


Anthracite Goal 






Ark-qn sas 


9 


'63.8 


Pennsylva.i-ii.a 


2 


5.7 


California 


14 


23.0 








Florida 


7 


40.8 


Bit-uiainous Coal 


5G2 


33.4 


Idaho 


3 


42,3 


Alabama 


36 


42.9 • 


'Kentucky 


4 


37.6 


Co lo rado 


5 


37.4 


Louisiana 


15 


57,7 


Illinois 


2 


7.8 


Liicliigan 


6 


42.2 


ICentur'ky 


87 


40.8 


Mississippi 


6 


50.5 


Hew Mexico 


5 


23.8 


Oregon 


14 


18.0 ■ 


Ohio 


7 


19.3 


South Carolina 


4 


29.8 


Pennsylvania 


135 


24.0 


Tennessee 


2 


48.2 


Tennessee 


13 


53.3 


Texas 


18 


43.3 


Utah 


- 6 


32.0 


Wasliington 


12 


12.9 


Virginia 


30 


44.7 


West Virginia 


12 


43.5 


Washington 


3 


21.0 


liYisconsin 


4 


35.3 


West Virginia 


219 


38.8 


All Others 


10 


41.7 


VJy orning 


8 


29.1 








All Others 


6 


25.5 


Textiles 


75 


27.2 








Georgia 


' 15 


24.4 


Copper 






North Carolina 


22 


28.2 


All 


4 


30.8 


South Carolina 


35 


32.2 








All Others 


3 


13.3 


Iron and Steel 












All 


12 


7.4 


Misc. Indus- 
tries 










1 


All 


10 


22.7 



a/ If the three Pacific Coast States - California, Oregon and Washing- 
ton - are excluded, the percentage for the Lumber Industry becomes 
46.4. 



16224*-91 



The 13 returns from the stores serving the iron and steel 
industry indicate that a moderate percentage prevails. Perhaps it 
should he mentioned that the inclusion of executive salaries for this 
sample, which is almost completely restricted to the South, where 
absentee ownership is prevalent, accounts in part for the low percent- 
age. 

For the 147 stores in the lumher group the percentage is 
33.8. It is interesting to note that in the three Pacific Coast 
States, where little or no complaint against the company store has 
heen voiced, percentages are low. If these he excluded, the percent- 
age for the remaining states is 46-.4. 

The percentage of the payroll received hy 75 cotton mill 
stores is 27.2 with a range from 24 per cent for G-eorgia to 32 per 
cent for South Carolina. 

Another item pertaining to the relationship of the employees 
to the parent company and to the' company store is the access of the 
stores to the earnings record of the employees. To this question, 
950 stores replied, of which 53 per cent report that they have access 
to such records. The same percentage is reported for the hit-uminous 
group and almost the same percentage figure for lumher; the percentage 
for tiie cotton mill stores is somewhat higher, heing 61, and for the 
iron and steel group it is substantially lower, heing 18 per cent. 

When the procedure is such that the payroll master of the 
parent company issues a store order to the employee on the company 
st«re, there is no need for the latter to have access to the record 



16224-92 



TABLE XI 

PB ECEiTOAGE OF TEE WliBER 0? COU Al'TY STOEBS HAVIHG ACCESS TC 

BEC0PD5 .1^ COIvJ-AIT: EI.iPLOYBBS'E A ffl>IIlTGS TO ALL EEPORTIITG 

COi.J' AI'f STOBES. CLASSI PI ED BY IIC3U ST RY, 1934 







Furnlier of 


Percentage 




ijumber of 


Stores Having 


Having Access 


Industry 


Stores 


Access to 


To Records 




Reporting 


Records of 


of Employees' 






Employees' 


Earnings 






Earnini£;s 




Bit-uminous Coal 


S52 


342 • 


52.5 


Iron and Steel 


22 


4 


18.2 


Lumber 


160 


82 


51.3 


Textile 


91 


56 


61.5 


ether 


25 


17 


58.0 


Total All 


950 


501 


52.7 



of the employees' earnings, since the payroll clerk may he trusted 
not to issue an excessive smount of credit to the employee. Also, 
since deductions from wages for the account of the conipany store are 
made hy the payroll office, it is an easy matter to ascertain whether 
an individual employee is "bestowing his patronage in sufficient volujne 
upon the company store. Accessihility of earnings records is important 
only for two rea^sons: As a check on issuance of credit and on volrmie 
of iDurchases of each employee. 

That credit is extended generally with regard to reason- 
ahle "business considerations and not in the main for philanthropic 
motives is patent from the data su"bmitted "by the conipany stores. 
Information was requested on the amount written off as losses on "bad 
accounts and the amotint written off as employee relief (other than 
bad debts) for. each year from 1931 to July 1, 1934. Sales for each 



15224-93 



year were also requested. Hov\?ever, it was not feasilDle to tabulate 
bad accotuits and employee relief separately "because it was stated 
on many schedules that the latter could not "be separated from the 
"bad accounts. Thus, employee relief in the typical instance is not 
given as an outright grant, whi^ch- is the case in other than company 
controlled towns, "but is considered as a credit transaction that the 
worker is o"bliged to liquidate when he is again employed. Accordingly, 
"bad accounts and employee relief have "been tabulated as one item and 
only so tabulated when sales for the same period have been reported. 

Although the ratio of losses to sales during the last three 
and a half years has been extremely moderate, nevertheless there is 
discernible a uniform year-to-year movement in each of the industrial 
groups. For all the stores reporting this information in 1931 the 
percentage of losses to total sales was less than one per cent (0.9). 
As the depression deepened in 1932 the percentag'e was 1.6. But in 
the following year with the perfecting of the distribution of govern- 
mental relief it seems that the unemployed workers in increasing 
numbers availed themselves of outright grants resulting in a percent- 
age of losses to sales of 0.9. For the first half of 1934 the per- 
centage Was 0.8. Not only is the pattern of year-to-year movement 
for each industrial group similar but range of variation in each group 
is almost identical. 

The percentages for the first six months of 1934 tend to 
be minimized by the fact that it is the usual accounting practice to 
write off losses at the end of the year. This is additional evidence 
that relief is regarded as an extension of credit. It should be 

16224-94 



TABLE XII 
EATIO OF LOSSES OH BAD .IGCOmiTS PLUS EIvlPLOYEE HELIEF TO TOTAL SALES OE 



COtiPAlir STOKES I!I 1931, : 


.932 Aim 


1933 Al-m 


THE FIE 


ST SIX MONTHS OF 1934 
























Ratio 
Of Total 


Industry and State , 










Losses to 




Ratio of Losses to Sc 


les 


Total Sales 




1931 


1932 


1933 


1934 


1931-1934 


Total: All 


0.9 


1.5 


0.9 


0.8 


1*1 


Anthracite Coal 












Pennsylvania 


1.3 


0.9 


0.9 


0.9 


1.0 


Bituminous Coal 


0.8 


1.5 


0.9 


0.8 


1.0 


Alabama 


1.4 


3.1 


2.3 


0.8 


1.9 


Colorado 


0.6 


0.8 


0.3 


0.1 


0.5 


Illinois 


0.7 


0.4 


0.8 


0.1 


0.5 


Kentucky 


1.2 


1.6 


0.9 


0.4 


1.1 


New kexico 


o.s 


0.4 


1.2 


0.0 


0.5 


Ohio 


0.3 


0.4 


0.7 


0.2 


0.4 


Pennsylvania 


1.0 




1.0 


1.6 


1.4 


Tennessee 


0.8 


1.1 


1.0 


0.8 


0.9 


Utah 


O.S 


0.9 


0.6 


1.9 


0.8 •■ 


Virginia 


0.4 


0.5 


0.5 


0.3 


0.4 


Washington 


0.3 


0.1 


0.2 


0.0 


0.2 


West Virginia 


O.S 


1.2 


0.8 


0.5 


0.8 


Wyoming 


0.2 


0.3 


0.3 


0.4 


0.3 


Others 


1.1 


0.8 


2.5 


0.3 


1.2 


Co-op er 












All 


1.5 


1.7 


0.8 


0.8 


1.3 


Iron and Steel 












All 


0.8 


1.3 


0.8 


0.9 


0.9 


Luitiher 


1.0 


2.0 


1.2 


0.7 


1.2 


.Alahama 


0.5 


0.3 


0.5 


0.8 


0.5 


Arkansas 


1.3 


4.9 


2.4 


0.5 


2.1 


California 


0.5 


0.4 


0.5 


0.3 


0.4 


Florida 


0.4 


1.4 


1.0 


1.3 


0.9 


Idaho 


0.3 


1.4 


1.3 


0.7 


0.9 


Kentucky 


0.3 


0.2 


0.2 


0.0 


0.2 


Louisiana 


0.8 


1.8 


0.9 


0.5 


1.0 


Michigan 


1.4 


1.5 


1.5 


O.o 


1.3 


Mississippi 


1.2 


0,9 


0.9 


0.8 


0.6 


Oregon 


0.2 


0.3 


0.4 


0.1 


0.3 


Soxith Carolina 


0.3 


0.4 


0.4 


0.0 


0.3 


Tennessee 


0.5 


1.1 


1.3 


O.b 


0.9 


Texas 


0.7 


. 1.1 


0.8 


0.9 


0.8 


Wa-shington 


1.9 


3.0 


2.0 


1.5 


0.5 


West Virginia 


2.2 


5.3 


2.3 


2.5 


3.0 


Wisconsin 


0.1 


0.2 


0.0 


0.5 


0.1 


Others 


1.2 


3.1 


1.4 


0.5 


2.5 


Textile 


1.4 


1.5 


1.2 


0.9 


1.3 


Georgia 


1.4 


1.7 


1.3 


1.3 


1.4 


llorth Carolina 


1.2 


1.2 


1.0 


1.1 


1.1 


South Carolina 


1.2 


1.4 


1.0 


0.8 


1.1 


Others 


3.6 


3.6 


2.4 


0.2 


2.8 


Miscellaneous Industries 












All 


0.2 


0.3 


0.2 


0.2 


0.3 



1S224-95 



noted also that some enterprises accum-ule.te doubtful accounts for 
several years and v/rite them off in a lump sum. The percentage for 
the year in which this occurs will "be relatively large. For this ' 
reason the losses for the three and a half years were aggregated 
and expressed as a percent;age of the total sales for the seme period. 
Tor all stores the percentage is 1.1 and the range of variation "by 
important industrial groups is 1.0 for 'bitumin.ous coal to 1,3 for 
the cotton mill stores. 

• It may be concluded on the evidence , of the questionnaire 
that the issuing of credit "by the company stores to unemr^loysd or 
under-employed workers has not "been financially onerous. 

Despite the fact that a largfe part of the worker's purchas- ■ 
ing power available for retail purchases is expended at company stores, 
328 stores, or 34 per cent out of the total of 9S1, report that at no 
time do they supply the customer with any record of M.'. purchases. 
In the hituminous grpup, 28 per cent fail to render such records; in 
the lumber group, 53' per cent; and in the cotton mill stores, 32 per 
cent. Of the 328 stores that : do not issue records of purchases, 57 
per cent- are found in the' Tai.tuminous group among which the stores of 
West Virginia are the most numerous, accounting for 43 per cent of 
the bituminous group. The stores in the lumlier industry conrprise 
^26 per cent of this .total an.d. the cotton mill stores, 9 per cent, 

'■ Another item concerning ti;e employee relationship is the 
practice of issuing scrip on pay day. In places where this procedure 
is followed, it is possihle for some of the workers to be chronically - 



16224r-96 



indeTated to the parent company and not receive any cash for long 

periods of time. Accordin/,ly, it is of interest to learn that of 

the 878 that cinswered this craestion 455, or 52 per cent, reported 

that the operating company does issue scrip on pay day. lor the 

■bituminous group, 58 per cent so answered; for those in t. e limher 

industry, 39 per cent have reported the existence of this practice, 

DJid in the textile group, 35 per cent have stated that scrip is 

issued on pay day. 

2ABLE XIII 

PERCENTAGE OF THE FJIiBEP. 0? COIviPAllY STORES I^OT SUPPLYING 

CUSTOLiERS VjITK Jdll RECOPI) OP PURCHASE TO TOT.VL 

I\TUk3ER OP IlEPCRTING COi-iPAI-IY STORES, 1934 







ll-umber of 


Percentage of 


Industry 


ilumher of 


Stores Supply- 


Stores Supplying 




Stores 


ing no Record of 


No Record of 




Reporting 


parchase to 


Purchase to 






Customers 


Customers 


Bitujninous Coal 


S58 


187 


28.4 


Iron and Steel 


24 


20 


83.3 


Luinher 


161 


86 


53.4 


Textile 


91 


29 


31.9 


Total All 


961 

. . — . . — . — . 


328 


34.1 



The parent companies in the hituminous fields constitute 
75 per cent of the 455 coiiipanies in all industries ma3ring use of this 
procedure, and those in West Virginia, comprise 54 per cent of the 
"bituminous group. The lumljer companies represent 13 per cent of the 
total; and the cotton mills, six per cent. 

It is manifest that the length of the pay period is related 
to the company store prohlem. It is gratifying, therefore, that the 



15224-97 



monthly pay period is no longer the pr-^ailing arrangement. In 
the bitiuninous industry the code provides for a semi-monthly pay 
period and all but two of the 658 coal companies reporting have either 
a bi-weekly or semi-monthly pay period. In the lumber industry 
the prevailing length of the pay period is bi-weekly or semi- 
monthly, 68 per cent out of 157 companies paying with this frequency. ' 
However, 25 per cent of the Itmiber companies s.till maintain a monthly 
pay period. The common practice in the southern cotton mills is a 
weekly pay period; only nine per cent of those reporting have a bi- 
weekly pay period. 

TABLE XIV 

PERCEMTA&E OF THE MJMBER OF STOEES ISSUING SCHIP 01 PAY DAYS 

■ TO TOTAL MJI/IBER OF REPGRTIHG GOMPAI>iY STOKES, 1954 







Number of 


Percentage 




Number of 


Stores 


Of Stores 


Industry 


Stores 


Issuing 


Issuing Scrip 




Reporting 


Scrip on 


On Payday 






Payday 


To All Stores 


Bituminous Coal 


601 


;347 


57.7 


Iron and Steel 


24 


19 


79.2 


Lumber 


147 


5G 


39.5 


Textile 


80 


28 


35.0 


Total All 


878 


455 


51.8 



Of equal importance to the length of the pay period is the 
length of the period for which wages are withheld after the close of 
the pay period. The period of wage retention seems to be about equal 
to the length of the pay period. Thus, 90 per cent of the bituminous 
coal companies withhold the payment of wages from eight to 15 days; five 
per cent withhold payment four to seven days and two per cent from 



16224-98 



16 to 21 days. In the Imahev industry, 51 percent vathhold pay- 
ment from eight to 15 days; 23 per cent, from four to seven days^ 
19 per cent from one to three days; and one per cent from 15 to 
21 days. The cotton mills m.ak:e the hest showing since 88 per cent 
pay the wages four to seven days after they are due, and nine per 
cent maize such payments one to three days after the close of the 
pay period. There seems to he no justification for the long pay 
periods and period of wage retention in the coal and lumher industries, 

TABLE. XV 

FEHCS1TTA&3 DISTEI3UTI0H OF THE ^ 5 1 COMPAITY STORES BY THE 

LEEG-TK OF THE PAY PERIOD. CLASSIEIED BY INDUSTRY. 1934 



Industry 


Nimher of 

Stores 
Reporting 


Percentage Distribution According 
To Following Specified Pay Periods 




One Week 


Semi "Monthly 
or Two Weeks 


Monthly 


Bituminous Coal 

Lu^Tiher 

Te;;tile 


558 

157 

91 


7.0 
91.2 


99.7 

57.5 

8.8 


0.3 

25.5 


Total All 


957 


10.1 


85.5 


4,4 



TABLE XVI 

PERCENTA GE DI STRIBUTIOh OF 936 COIiiPAI Jr STORES ACCOBDIMG TO 
THE LBUGTH OF PERIOD FOR VrJICH WAGES ARE WITHHELD AFTER THE 
CLOSE OF THE REGULAR PAY PER IOD, CL ASSIFIED BY Il-iPUSTRY, 1954 



Industry 


Number of 

Stores 
Reporting 


Percentage D 
ing Lengths 


istribution According to Follow- 
of Periods for T/lThich Vfeges are 
Withheld 






Days 


1-3 

Days 


4-.7 
Days 


8-15 
Days 


16-21 
Days 


22 Days 
and over 


Bitmainous 

Coal 
Lumher 
Textile 


538 

158 

89 


1.1 

1.3 


0.8 

19.0 

9.0 


5.2 
23.4 
87.6 


90.1 

50.6 

3.4 


2.0 

4.4 


0.8 
1.3 


Total All 


936 


1.0 


5.2 


18.0 


73.0 


2.2 


0.5 



15224-99 



statistical Appendix 



15224-100 



(1) 

LIST OF EXHIBITS 
Exhibits A 



Transcripts of Heuriiigs Feld in 3irmingham, Alabpma on Article IX, Section 
4 of the Cole oi Fair Competition for the Hetail Trade, July 2, 1934 
(Two Vol-omes) . ; 

E xiiibits B 

"The Cotton Mill Worker and His IJeeis," a report contain: ng "facts and 
■figures gathered froii rorsoual investigations -ind revolts directly 
from mill stores and zne cotton mills" suhraittcd "by The Mill Stores 
Committee of the American Cotton Manufacturers Association, William 
P. Jacobs, Chairman. 

Exhibit C 



"The Use of Company Scrip and the Granting of Credit by Company Stores 
in the Lumber Manufacturing Industry," a survey report "compiled from 
questionnaire information supplied the National Lumber Manufacturers 
Association by lumber manufacturers," submitted by the National Lumber 
Manufacturers Association. 

Exhibit D 

Briefs and Statements favoring Company Store and Scrip System or Protest- 
ing against the retention of Article IX, Section 4 of the Code of Fair 
Competition for the Retail Trade. 

George Bellsnyder, Buckingham, Alabama 

Bessemer Chanbc-r of Commerce 

Lige Chaniler, Protective League, Bessemer, Alabama 

M. M. Chandler, lumberman 

Committe-:? of 1,'erchants and Manufacturers of the Birmingham 

District, ¥, C. Phillip, Chairman 
Coupon Book Manufacturers Association 
J. G. Da\'is 
Billy Dean, Farmer 
Durham Brothers 
Oscar Dutro 

M. H. Fies, Vice-President De Bardeleben Corporation, Alabama 
Fitzgerald and Company (Submitted by Hunton, Williams and 

Anderson and Gay on behalf of) 
Jim Franklin 
Tom Hall 
W. M. Hallmark 

F. H. Hollingworth, Sloso-Sheffield Company 
H. B. Howell, By -Product Company Store, Alabama 
Miss Hughes, Teacher 
Mrs. D. J. Hughes 

M. G. Jackson, Farm Product Agent, Alabama 
Kelly 

Kennicott Copper Corporation 
T. B. Kennedy 

16224-101 



Industrial Stores and Cominissaries of Birmingliam, Alatama 

(Su'cniitted by Borden Barr on behalf of) 
Industrial Stores and Commissaries of Birminghttm, Alabama, 

"Additional Statement and Brief and Analysis of Statements 
and Evidence Presented at tlie open Hearing Held in Birming- 
ham, July 2, 1934", (Submitted by Borden Barr on behalf of) 
Industrial Stores Association 
Prank Lainont 
William Marshall 
H. J, McCombs 

Miami Copper Store, Arizona 
Mrs. G-len Montgomery 
National Coal Association 
National Lumber Association 
Fred Oliver 
V. A. Stewart 

Southern Pacific Railroad Company - Threl Eeld Company 
Staggs 
United Mine YiTorkers of imerica (Submitted by Judge Warrum on 

behalf of) 



Herskey Wilson 



Exhibit E 



Briefs and Statements Opposing the Company Store and Scrip System or Favor- 
ing the Retention of Article IX, Section 4 of the Code of Pair Competition 
for the Retail Trade. 

J. W. Adams, By-Products Company, Alabama 
L. D. Anderson, Employee .of Tennessee Railroad Company 
L. T, Anderson 

J. T. Bates, President Mine County Local 5905 U.M.W.A. , Alabama 
L. B. Carter, Trade Councils 

William Green, President Jmerican Federation of Labor 
W. 0. ,Hare, Secretary Alabama Federation of Labor 
Benjamin Leader on behalf of Retail Stores in Alabama 
R. B, Lelimaii, Bessemer, Alabama 

.William Mitch, President District 20, Birmingham, U.M.W.A. 
Ed. T, Morgan, President District 23, Madisonville, Kentucky, 

U.M.W.A. 
Robert R. Moore, President Alabama Federation' of Labor 
D. E. Smith, Sloso Local 

Otis Young, President Birmingham Local 620 
B. Youngblood, Union Leader 

Exhibit F 

Briefs and Statements protesting against the retention, or Favoring the 
Elimination of Article VIII, Section 4 of the Code of Fair Competition 
for the Retail Jewelry Trade 

Association of Railway Executives 

The Baltimore and Ohio Railroad - Brief 

The Baltimore and Ohio Railroad - Supplementary Brief 

Erie Railroad Company 



16224-102 



(3) 



F» H. Fljozdal, President Brotherhood of Maintenance of 
Way Employees 

National Retail Jewelry Code Authority 

Railroad Watch Inspectors Group of the National Retail 
Jewelers Association 

D. B.. Robertson, President Brotherhood of Locomotive Fire- 
men and Enginemen 

A. F. Whitney, President Brotherhood of Railroad Trainmen 

Exhibit G a/ 
Affidavits Favoring the company store system. Submitted By: 



Alexander, Johnnie 
Atkins, J. B. 
Bozeman, C. E. 
Braxton, Robert 
C obb , Charl i e 
Costa, Frank 
Cousins, Archie 
Darden, Dearest 
Dickens , Collie ■ 
Doak, Jim 
Doss, Frank 
Doster, Jessie 
Evans, Joe 
Findley, Russell . 
Finley, Willis 
Poster, Tom 
Gainer, Jesse 
Gaiters, Allen 
Gee, Willie 
Green, Will 
Hall , Thomas 
Hal 1 , Thomas 
Hamrick, J. V. 
Harrison, Sam 
Harrisson, Robert 
Harvey , Hamp 
Hill, Tom 
Howard, Major 
Johnson, Oliver 
Jones, Charlie 
Kirkland, Robert 
Knox, J. N. 
Knox, Lloyd 
Knox, Sam 
Levert, Alous 



Superior Lime Company' 

Saginaw, Alabama 

Saginaw, Alabama 

Sloss, Alabama 

Sloss , Alabama . ' 

1531 Clarendon Ave., Bessemer 

Bessemer, Alabama 

Sloss, Alabama 

Sloss, Alabama 

Landmark, Alabama 

Woodward, Alabama 

Saginaw, Alabama 

Sloss, Alabama 

Saginaw, Alabama 

Saginaw, Alabama 

Sloss, Alabama 

Sloss, Alabama 

Saginaw, Alabama 

Sloss, Alabama 

Siluria, Alabama, R.I., B. 22 

1316 - 20th St., Bessemer 

1317-26th Street, Bessemer 

Saginaw, Alabama 

Saginaw, Alabama 

Saginaw, Alabama 

Sloss, Alabama 

Calera, Alabama 

Woodward, Alabama 

Woodward, Alabama 

Woodward, Alabama 

Saginaw, Alabama 

Saginaw, Alabama 

Saginaw, Alabama 

Bessemer, Alabama 

Sloss, Alabama 



a/ Unless otherwise specified, the signers are workmen 



16224-103 



EXHIBIT I 



(5) 



Petitions favoring the retention of Article IX, Section 4 of the Code of 
Fair Competition for the Retail Trade. 

Emplov-fc-r of Parent Companies (two grouris) 

W. A. F'owfcll , and group of merchaiits 

United Mine V/orkers of Ariierica, Union #5841, Brilliant, Alabama 

United Mine Workers of AmerJca, Winfield, Alabama' 

UnitedMine Workers of America, Union Tf 5905, Plat Creek, Alabama 

Resolutions submitted by the following local unions of .the United Mine 
Workers of jlmerica .Endorsing Article IX, Section 4 of the Code of Fair 
Competition for the Retail Trade. 



Local U n ion Number 

5836 
. . 6S45. 
■ . . 5773 

6334 

5602 

S.V/.L. #81 

183''0 

District 20 

5828 

6C19 

6047 

5840 

#30 

5803 

5306 

5823 

5930 

5S83 

District 23 

6436 

5827 

6271 

5948 

1794 

6807 



Location 
Acmar, Alabama 
Altoona, Alabama 
America, Alabama 
Bessemer, Alabama 
Bessemer, Alabama 
Bessemer, Alabama 
Bessemer, ^Alabama 
Birmingham, Alabama 
Bloc ton, Alabama 
Cardova', Ala.bama 
Carlisle, West Virginia 
D.gyreton, Alabama 
Fairfield,' Alabama 
Howard, Alabama 
Kelina, Alabama 
Kathrjm, West Virginia 
Leeds, Alabama 
Lewesburg, Alabama 
Madi sonville , Kentucky 
Peterson, Alabama 
Piper, Alabama 
Moundsville, West Virginia 
Milburne, West Virginia 
Studa, Pennsylvania 
Townley, Alabama 



EXHIBIT K 

Letters favoring Company Store and Scrip System or protesting the retention 
of Article IX, Section 4 of the Code of Fair- Competition for the Retail 
Trade . ' 



Anderson Dry Cleaning Co. 
Angelina County Lumber Co. 
Bagdad Lumber Company 
Barton, D. H. 



Bessemer, Alabama 
Angelina City, Texas 
Bagdad, Florida 
Jasper, Alabama 



16224-105 



Beadle Merchandise Company 
Ben Craig Company 
Bessemer Soiling Mills 
Biveil, Lee (Meat Tilholesaler) 
Bo stick, E. C. (Parmer) 
Bradley Bros. Grain Comp3J.iy 
Bi-ight, J. C. , Lehigh llov. Co. 
Butler, H. C. 
Calar, Sssix H. 
Caldwell, A. A-. 
Carhon Fuel Company - 
Couch, 1,1. G. (Jr. High Scliool 

Principal) 
Crawf o r d ' s Li 1 line ry 
Crossett Lumlser Company 
Deason, A. W. 
De Vaney, J. A. 
Dohber, A. L. (Parmer) 
Bvansville Packing Compajiy 
Fulton Drug Company 
G3.rlington, J. M. 
Goodv.an, P. J. 
Gulf State Steel Conrpai^y 
Htmtington Chamber of Commerce 
Industrial Stores Association 
Jacobs Undertaking Company 
Leggett, J. \Y. (Jeweler) 
Long, Bell Lumber Corporation 
Long, Lev/is Hardware Company 
McClain, R. C. 
McLaughlin 
McDowol, H. A. 
Massey, H. W. 
Meade, \i. E. 
Minor, J. W. 
Moody, Lee (Pres. 

Bank) 
Ivlj'ers, Joe (Farmer) 
Herman, B. D. 

Oxford-Chambers Produce Company 
Peese, George V. (Farmer) 
Pogram, Harris and Bates 
Pickett, Chas. 
Pyle, v7. VI. 
Pay, E. C. (Doctor) 
Eo Chester Drug Company 
Schilleci, Paschal 
Sexton, D. 
Taylor, H. W. (Principal of 

Colored School) 
Turner, C. C. (Pastor, Ocipco 

Churclx) 
Venable, W. B. (Farmer) 
^7ashington, Jeff 
V/ashington, S. M. 
Watts, William 



N. J. Ins. Co. 
(Merchandise) 



First National 



3rock?;ay, Pennsylvania 
Bessemer, Alabama 
Bessemer, Alabama 
Bessemer, Alabama 
Jefferson City, Alabama 
Birmingham, Alabama 
Birmingham, Alabama 
Eed Mountain, Alabama 
Aanar, Alabai'aa 
Bessemer, Alabama 
Wevaco, West Virginia 

Empire, Alabama 
Bessemer, Alabama 
Crossett, Arkansas 
Bessemer, Alabama 
Dora,, Alabama 
H. 2, Odenville, Alabama 
Birmingham, Alabama 
Bessemer, Alabama 
Bessemer, Alabama 
Acmar, Alabama. 
Bi rmi ngham , Alabama 
Huntington, VJest Virginia 
Cincinnati, Ohio 
Bi rmi ngham , Alabama 
Bessemer, Alabama 
De Redder, Louisiana 
Bi rmi ngham , Alabsina 
Acm2.r, Alaba:aa 
Odenville, Alabama 
i"ew Jersey 
Bessemer, Alabama 
Odenville, Alabama 
Odenville, Alabama 

Bessemer, Alabama 
Sip sey , Alabama 
Bessemer, Alabama 
Bessemer, Alabama 
Bessemer, Alabama 
Bessemer, Alabama 
Aanar, Alabama 
Acmar, Alabama 
Bessemer, Alabama 
Bessemer, Alabama 
Bessemer, Alabama 
Acmar, Alabama 

Sip sey, Alabama 

Birmingham, Alabama 
Trussville, Alabama 
3, 151, Aaaar, Alabama 
Acmar, Alabama 
Bessemer, Alabama 



15224-106 



(?; 



EXHIBIT L 



Letters protesting against Coimanj'- Store and Scrip System or favoring the 
retention of Article IX, Section 4 of the Code of Fair Competition for 
the Retail Code. 



Barton Owen, President LocrT 4942 
United Mine V/orkers of ;,:ai f-ica 

Bessemer District Smel+--.'i :. C'.mncil 

Ghsmhers, R. W. (Bani: of Parrish) 

Colern, D. D. (Worker) 

Gil lis, Joan ('^.^orker) 

Hess, George F. (Merchant) 

Humphreys, Bige (ivierchuit) 

Kirk, Bfin J. (Hardware kerchant) 

Knox, Srjn (Worker) 

Lehman Furniture Compaxiy 

Mc Mahon, F. J. 

Pear, Henry (Worker) 

Hhoades, Ralph 

Rowan, James A. 

Stone, F. C. 

Smi th , Ar chi e ( Yif o rke r ) 

Social Circle Cotton \'all Co. 

Taylor, E. F. and Sons 
"Confidential" 
"Confidential" 
"Confidential" 
"Anonymous" 



Parrish, Alabama 
Ko\u.?. , L oul s i a na 
Br.cok, Webt Virginia 
Clinton City, Pennsylvania 
Wilder, Texas 
Parrish, Alabama 
Bessemer, Alabama 
Parrish, Alabama 
Altoona, Pennsylvania 
Bessemer, Alabama 
Gideon, Missouri 
Kingston, West Virginia 

Combira, Pennsylvania 
Social Circle, Georgia 
Saltville, Virginia 
Alum Creek, West Virginia 
Bergoo, Yfest Virginia 
Bergoo, West Virginia 
Elverton, West Virginia 



EXHIBIT M 

Letters received by Cotton Textile Institute from Cotton Mills favoring 
Company Store and Scrip System or protesting the retention of Article 
IX, Section 4 of the Code of Fair Gomoetition for the Retail Trade. 



Aragon Mills 

Atlanta IVoolen Mills 

Banning Cotton i.iills 

Beacon Maiiufacturing Company 

Brandon Corporation 

The Chronicle Mills 

Cleveland Mill and Pov/er Comnany 

Clifton Manufacturing Companj'' 

Climax Spinning Company 

Crescent Spinning Company 

Drayton Mills 

Eagle Yarn Mills, Inc. 

Eastman Cotton Mills 

Exposition Cotton Mills 

Franklin Process Comioany 

Fulton Bag and Cotton Mills 

Hannah -Pickett Mills, Inc. 



Aragon, Georgia 
Atlanta, Georgia 
Banning, Georgia 
Savannah, Uorth Carolina 
Greenville, South Carolina 
Belmont, North Carolina 
Lawndale, North Carolina 
Clifton, South Carolina 
Belmont, North Carolina 
Belmont, North Carolina 
Spartan buu:g, North Carolina 
Belmont, North Carolina 
Eastman, Georgia 
Atlanta, Georgia 
Providence, Riiode Island 
Atlanta, Georgia 
Rockingham, North Carolina 



16224-107 



Lily Mill and Power Company 

J.ianetta Mills 

Iviarion Manufacturing, Company 

Millville Department Store 

Monarch Mills 

Monroe Cotton Mills 

Heisler Mills, Inc. 

Pacolet Manufacturing Company 

Pepper ton Cotton Mills 

Eosv/ell Mills, Inc. 

Sauquoit Sjoinning Mills, Inc. 

Southern Brighton Mills 

Southern Mercerizing Company 

Spartan Mills 

Superior Yarn Mills, Inc. 

Tucapau Mills 

Union Manufacturing Company 

United Merchants and Mfrs. 

Management Corporation 
TiJallace Manufacturing, Inc. 
Y/hittier Mills Company 



Shelhy, North Carolina 

Lando, South Carolina 

Marion, North Carolina 

Georgia 

Union, South Carolina 

Monroe, G-eorgia 

Kings Mt., North Carolina 

Pacolet, South Carolina 

Jackson, Georgia 

Ro swell, Georgia 

Gadsden, Alahama 

Shanno n , Geo rgi a 

Tryon, North Carolina 

Spartanburg, South Carolina 

Statesville, North Carolina 

89 Broad St., Boston, Mass. 

Union Point, Georgia 

271 Church St., N. Y. 
Jonesville, South Carolina 
Chattalioochee, Georgia 



Letters received hy Cotton Textile Institute from Cotton Mills opposing 
Company Stores and Scrip System or favoring retention of Article IX, 
Section 4 of Code of Fair Competition for Retail Trade. 



A. M. Smyre Manufacturing Co, 
Bemis Brothers Bag Company 
Chicopee Manufacturing Corp. 



Gastonia, North Carolina 

Boston, Mass 

New Bri.msT/ick, N. J. 



EXHIBIT N 



MISCELLANEOUS 



Coupon Book Manufacturers Association, "A Suggestion of Means 
v;here"by Discounting of Company Scrip will be Prevented." 

Installment Contract Eorm (Stowe Mercantile Company). 

Lease Contract Pomi (Pittsburgh Mercantile Company). 

Lease Contract and "iiTage Assignment Form (Union Supply Co.). 

Petition submitted by Cohan Mill VJorkers to the American 
Cotton Manufacturers Association. 

Photographs of Company Stores. 

Questionnaires filled out and returned to the American 
Cotton Manufacturers Association. 

Wage Assig-nment Porm (Crosswell Company). 



15224-108# 







■T-^ittS 1 










COI"PilRISOH OF HETAIL PIITCES O; 


•■ FOC^S IIT GOKPAITY STOHES AKD 




INDEPEKDSFT STOhES IN THT 


] BIRIiDTGHAl.l DIS 


TPICT 
















Percentage 




^0 of : 








Independent : 


Difference 


Article ' 


Article : 

to Total- 




Connany 


Store ': 


Store : 


Above or 


ITuj.iber : 


Aver-: 


I'unuer Aver- : 


Belo^iv (-) 




Food Pur- 


Price : 


Of Cuo-: 


Sfi-e ': 


of Ouo ai^e : 


Independent 




chase d(b) : 


Unit : 


tat ions: 


Price: 


tat:on?: Price : 


Store Prices 


PI our : 


23.6 • 


24 Its. 


14 : 


*1.27l: 


12 . 


41.200' 


5.9 


Cornmeal . .; 


9.6 . 


12 Ihs. 


14 : 


.328: 


■14 : 


.318' 


3.1 


Rice : 


1,0 


1 Ih. 


14 : 


.80 : 


13 : 


.059 


35.6 


Macaroni : 


0.2 


7 oz. pk.--. 


- 14- : 


.066: 


14 : 


.049 


14.3 


Rolled Oats : 


0.1 


20 oz. pkg. 


14- : 


.097: 


14 : 


.088 


10.2 


Corn Flakes 


0.2 


Standard pkg. 


14- : 


.92 : 


14 


.086 


7.0 


Beans, llavy 


0.4 


1 Ih. 


14 : 


.066: 


12 


.060 


10.0 


Beans , Lima 


0.8 


. 1 Ih. 


12 ■ 


.090: 


14 


.077 


16.9 


Sugar 


8.7 


1 lb. 


. 14 . 


.063: 


14 


.059 


6.8 


Salt 


1.8 


1-1/2 Ih. . 


14 


.050: 


14 


.030 





Bread 


S.l 


1 Ih. 


14 • 


. 100': 


14 • 


.100 





Coffee : 


0.8 


1 lb. 


14 ■ 


. 196 : 


14 


.193 


1.5 


Potatoes, TiiThite 


3.8 


1 lb. 


13 


.026: 


14 


.023 


13.0 


Onions 


0.7, 


: . 1 lb. 


14 - 


.053: 


12 


.053 





Milk, Evaporated 


0.8 


Large Can ■ 


11 • 


.076: 


11 


.074 


2.7 


Tomatoes, Canned 


0.8 


#2 can 


14 


.108: 


14 


.097 


11.3 


Corn, Canned 


0.4 


• #2 c.^'Ji 


14 


.109': 


13 


.100 


10,9 


Peas, Canned 


0.2 


#2 can 


14 


.136: 


13 


.129 


: 5.4- 


Salmon, Canned 


0.4 


Standard can 


14 


.146: 


14 


.143 


: 2.1' 


Peaches, Canned 


0.2 


IIo, 2-1/2 can 
















in 40' Syrup 


12 


.205: 


11 


.192 


: 6.8 


Pork Chops • 


1.3 


1 lb. 


•■ 14 


.212: 


5 


.205 


3.4 


Sliced Cured Hara 


0.7: 


: 1 lb. 


12 


• .294: 


5 


.256 


: 14.8 


Sliced Breakfast 
















Bacon 


1.0: 


': 1 lb. 


13 


' .269^ 


8 


.243 


i 10.7 


Dry Salt Bellies 


4.4- 


: 1 lb. 


14 


' .161: 


14 


■ .149 


: 8.0 


Frankfurters 


0.7' 


: 1 lb. 


• 10 


. .191: 


•7 


. • .187 


: 2.1 


Pork Sausage 


: 0.3 


: 1 lb. 


: 14 


- .186: 


-6 


: .161 


: 15.5 


Lard 


: 5.7 


: 1 Ib.-okg. 


: 13 


: -.125: 


■ '5 


: .108 


: 15.7 


Creamery Butter 


: 0.5 


: 1 lb. pkg. 


:■ -14 


•• .341: 


10 


: .316 


: 7.9 


Eggs, Fresh 


: 0.1- 


: 1 doz. 


: 13 


• .224: 


11 


: .212 


: 5.7 






- 













(a) Aggregate of average prices multiplied by their respective weights: 

Company, 44.215; Independents, 41.740. Percentage difference in weighted 
aggregates, 5,9^. Data .gathered August 6, 7, and 8, 1934. 



(b) Alabama weights used by U.S^ Coal, Commission, Op. Cit. Pt. Ill, pp. 1569-70, 



16224-109 



■TA3IiE' 



COIIPAEISOjJ 0? 


RETAIL PRICES 0' 


c' FOODS 


Il-T COL'PAir/ STORES AIG) 














(A) 






IimEPENDEUT STOFIIS I 


rT EASTERIT KENTUC 


[;y 




















Percentage 




': :1 of 








: Independent : 


Difference 




: Article 
:to Total 




rCo'ipany 


Store 


: Store : 


Above or 
Belo^v (-) 


Article 


:lTunber 


: Aver- 


:ZIunber 


: Aver-: 




:Food Pur- 


: Price 


: of Qjio- 


: age ' 


: of Qjio- 


i age : 


Independen' 




: chased(b) 


: Unit 


: taticns 


: Price 


: tat ions 


: Price: 


Store Prici 


Flour 


: 28.1 


24 lbs. 


: 8 


: .41. 306 


: '7 


: $1,207: 


8.2 


Cornmeal 


2.8 


: 25 lbs. 


: . 8 


: .668 


: 5 


: .660: 


1.2 


Rice 


.2 


: 12 oz. r)kg. 


: . 9 


: .089 


: 7 


: .079: 


12.6 


Macaroni 


.2 


: 7 oz. "okg. 


:. S 


: .078 


: 7 


: .061: 


27.9 


Rolled Oats 


.6 


: 2 oz. pkg. 


9 


: .100 


: 7 


: .097: 


3.0 


Corn Plakes 


.1 


Standard pkg. 


9 


: .100 


: ■ 7 


: .095: 


5.2 


Beans, Ifevy 


1.8 


1 lb. " 


• 7 


: .063 


: ' 5 


: .064: 


6.2 


Sugar 


8.5 


■2 lb. -okg. ; 


. 9 


: .154 


: ■ 7 


: .148: 


4.0 


Salt 


2.3 


1-1/2 lb, r,kg, 


9 


. . OGO 


: ■ 7 


■ .050: 





Bread ^ 


4.8 


•1 lb. 


.9 


.100 


: ■ 7 


• .100: 





Coffee 


1.9 


■ 1 lb. 


,9 


: . 210 


: 6 


.197: 


6.6 


Potatoes -•'.yhite 


9.6 


•1 lb. 


n 


.o::2 


: ■ 6 


.027: 


■18.5 


Onions 


.9 


1 lb. 


8 


.062 


: ■ 6 


.056: 


10.7 


Cabbage ' : 


• 1.0 


■1 lb. 


8 


.037 


:' 6 


.029: 


27.6 


Milk, Evaporated 


2.1 


Large Can ■ 


9 


.085 


■ 7 


.080: 


• 6.2 


Tomatoes, Canned 


2.2 


lr2 Can 


8 


.100 


■ 7 


.095: 


5.2 


Corn, Canned 


.8 


■jf2 Can 


9 


.113 


7 


.100: 


13.0 


Peas,, Canned 


.1 


7^2 Cpn 


8 


.139 


■ 7 


.114: 


21.9 


Salmon, Canned 


.2 


St'andard Can 


7 


.164 


6 


.146: 


12.3 


Peaches, Canned 


1.1 


Ka. 2-1/2 can 
















in 40' 5 syrup : 


7 ' 


.228 


■ 5 


.206: 


10.6 


Round Steak 


1.0 


1 lb. " ■ : 


8 : 


.280 : 


' 3 ■ : 


.233: 


20,1 


Jjoin Chops 


1.9 


■1 lb. : 


8 


.235 • 


3 : 


.233: 


.8 


Boiled Ham 


.2 : 


1 lb. : 


9,' 


.405 • 


4 : 


.412: 


1.7 


Smoked Ham 


.5 . 


•1 lb. : 


8 


.291 


3 : 


.266: 


9.3 


Smoked Bacon 


.6 : 


■1 lb, : 


9. ■ 


.283 


3 : 


,266: 


6.3 


Dry Salt Bellies : 


1.7 : 


1 lb. : 


9, 


.165 ■ 


6 : 


.148: 


11.4 


Pork Sausage : 


.4' : 


1.1b. : 


9' : 


.195 : 


5 : 


.170: 


14.7 


Lard ' : 


1.8 : 


1 lb. Dkg.. : 


.9 : 


.121 '. 


6 : 


.104: 


16,3 


Butter : 


1.2' : 


1 lb. : : 


9 : 


.348 ■ 


6 : 


.345: 


5 


Cheese : 


.4 : 


1 lb. : 


9 


.300 


6 : 


.300: 





Sggs, Fresh : 


1.2 : 


1 doz. : 


9 : 


.225 : 


6 : 


.197: 


14.2 



■ (a) Aggregate of average prices multiiDlied by their resTDective weights. Connany 
44.812; Independents, 41; 604; Percentage difference in weighted aggregates, 
7.74. Data gathered July 16; 17, and 13, 1934, 

(b) New River weights used by U.S. Coal Comnission, Oto. Cit, Pt. Ill, pp. 1526-7 



16224-110 



I 



TABLE 
COI;!FARISOM OF RETAIL PRICES 0? FOODS IN COMPAJTY STORES AMD 

(a) 
IITDEPEIIDENT STOEES IN THE SOUTH CAROLINA DISTRICT #1 















Percentage 




f» of 








Indenpendent 


Difference 




Article 
to Total 




Conpan 


Y Store 


Store 


Above or 




Number 


Aver- 


i.]umber 


Aver- 


Below (-' 


Article 


Food Pur- 


Price 


of Quo- 


age 


of Quo 


- age 


IndeTDende., 




chfised( o' 


Unit 


tations 


Price 


tat ion 


5 Pric 


3 Store Pr 


PU)ur 


28. 6 


rA lbs. 


7 


$1.. 257 


5- 


$1,248 


1.5 


Cornmeal 


9.6 


6 lbs. 


6 


.155 


4 


.155 


■ 0.0 


Rice . . , 


1.0 


1 lb. 


7 


.073 


5 


.066 


10.6 


Beans, .Navy-. . ' 


0.4 


1 lb. 


5 


.072 


5 


.066 


9.1 


Beans, .Lima: 


0.3 


1 lb. 


7 


.086 


6 


.086 


0.0 


Sugar . ■ '. . : 


8.7 


1 lb. 


• 3 


.550 


■ 3 


.517 


6.4 


Coffee, ■■ . ■ 


0.8' 


1 lb. 


7 


.IBs 


5 


.166 


. 10.2 


Potatoes, white- 


3.8 


1 lb. 


• 6 


.035 


4 


.030 


16.6 ■ 


Onions . . " 


0.7- 


1 lb. 


■ 5 


.078 


5 


.066 


18.2 


Hilk, EvatJorated 


0.8- 


Large C;an 


6 


.078 


4 


,072 


8.3 


Tomatoes, Canned 


0.8 


#2 Can 


• 7 


.:090 


5 


.092 


- 2.2 


Corn, Canned 


0.4 


if 2 Can 


■ 7 


.114 


5 


.096 


18.7 


Peas , Canned 


0.2 


i=2 Can 


' 7 


.128 


5 


.116 


10. Z 


Smoked Ham 


0.7 


• 1 lb. 


• 7 


.278 


3 


.27"5 


3.0 


S"-oked Bacon 


1.0 ■■ 


■ 1 lb. 


• 7 


.245 


5 


.230 


6,5 


Dry Salt Bellies 


4.4 


• 1 lb. 


7 


,109 


5 


.102 


^ 6.9 


Lard 


5.7 


1 lb. iDkg, 


5 


.100 


' 5 


.098 


2.0- 


Butter (Creamery) 


0.5 


1 lb. pkg. 


7 


.333 


5 . 


.332 


0.3 


Cheese 


0.8 i • 1 It. 

' 1 • ■ ■ 


7 


.243 


5 


.216 


12.5 


(a) Aggregates ( 


— i : ~ 

3f weighted »vera,ge pric 


es: ■ Corn 


i:iany stc 


3re, 45,071: in 


dependent 


stores, 44 


032. Percentage differ 


ence 2.3 


per cei 


iti Data collected 


June 22, 21 


3, 25, and 27, 1934. 










(b) Birmingham i 


?eights used by U.S. Coa 


1 Cominis 


sion, 0] 


3. "Cit. 'Pt. Ill 


1 


pp. 1569-7( 


3 




. ' .. '■ 




' 




- 



1622U-111 



TABLE 4 
C011F,"^.ai50I\r OF retail prices of ?00SS III COKTAWf STOKES 

Airo IKDEFETPEHT STOPJ:S IN THE SOUTH CAROLINA DISTRICT #2 



(a) 



Article 



i of 



Article 
to Total 
Food Pur- 
cha.'sed( o) 



Pride 
Unit 



CoTToany Store 



HumlDer 
of nuo-- 
tat ions 



Aver- 
age 
Price 



Independent 
Store 



'IimiDer Aver- 



of Quo- 
tations 



age • 
Price 



Percentage 

Difference 
Atiove or 
Below (-) 
Independent 
Store Prices 



Flour 
Cornmeal ' 
Eice 

Macaroni ' 
Rolled Oats 
Corn Flaktes 
Beans, naVy 
Sugar 
Salt , ' 
. Bread 
Coffee • ■ 
Potatoes,' white 
Potatoes,' sPfeet 
Cat age 

Milk, eva!porated 
Tomatoes,' ca,nned 
Corn, canned 
Peas , canned 
Salmon, canned 
Round Steak ' 
Chuck or Pot Roast 
Rit Roast 
Loin Chops 
Boiled Ham 
Smoked Ham 
Smoked Bacon 
Dry Salt Bellies 
Frankfurters 
Pork Sausage 
Lard 

Butter, creamery 
Cheese 
Eggs, fresh 



28.8 

9.6 

1.0 

.S 

.1 

■ .2 

0.4 

8.7 

i.e 

3.1 
0.8 
3.8 
.8 
1.-7 
0.-8 
O.-B 
0.-4 
0.2 
■0.'4 
0.6 
0.1 
0.1 
1.3 
0.1 
0.7 
1.0 
4.4 
0.7 
0.3 
5.7 
0.5 
0.5 
0.1 



24 Ihs.- 
12 Ids.- 
1 Ih. ■ 
7 oz. i">kg. • 
Small pkg, > 
Standard -d1:@ 
1 11). • 
1 lb. 
l4 Ih.- 
1 Ih. 
1 11). 
1 lb. 
1 lb. 

1 11). • 
Large Can • 
#2 Can ■ 
#2 Can 
#2 Can • 
Standard Can 

1 lb. 

1 lb. 

1 lb. 

1 lb. 

1 lb. ' 

1 lb. 

1 lb. • 

1 lb. 

1 lb. 

1 lb. 

1 lb. pkg 

1 lb. 

1 lb. 

1 doz. 



6 
8 
8 
8 
8 



7 
5 
5 
7 
6 
7 



5 
6 
7 



$1,140 
.315 
.065 
.076 
.094 
.081 
.076 
.043 
.50 
.100 
.229 
.0.29 
.074 
.029 
.0-77 
.098 
.105 
.119 
.137 
.228 
. 159 
.154 
.211 
.383 
. 300 
.275 
.205 
.185 
.180 
.100 
.329 
.231 
.268 



7 
7 
7 
8 
7 
7 



7 
7 
7 
6 
8 
8 
7 
8 
5 
5 
3 
4 
4 
7 
7 
7 
6 
4 
7 
4 
5 
7 



$L110 
.297 
.065 
.059 
.085 
.086 
.071 
.060 
.049 
.100 
.205 
.030 
.067 
.033 
.076 
.098 
.098 
.098 
.128 
.200 
.125 
.143 
.192 
.400 
.304 
.267 
.■200 
.175 
.157 
.98 
.337 
.208 
.233 



6.1 

0.0 

28.8 

, 10,6 

5.8 

7.0 

5.0 

2.0 

. 0.0 

7.3 

- 6.7 
10.4 

-12.1 

1.3 

0.0 

5.1 

20.8 

7.0 

14.0 

27.2 

7.7 

9.9 

- 4.5 

- 1.5 
3.0 
2.5 
6.9 

14.6 
2.0 

- 2.4 
11.1 
15.0 



(a) Aggregate of weighted average prices: Company stores, 40,432; independent 

stores 32.017. Percentage difference 5.6 per cent. Data collected 
July 28, 30 and 31, 1934, 

(b) Birmingham weights used oy U.S. Coal Commission, Op. Cit, Pt, III, pp, 

1569-7G 
I622U-II2 



TABLE 



COI.'IPiiSISOlI 01 RETAIL PRICES OP POODS IK COiiPAKY STORES 



e 

e 


Aim liiDEI 


'E1T::EKT STORES I-N THE 


EASTERl 


' .TEFilESSEE DISTRICT a/ 


\ 






i 


. 


: Percentage 


) 


fo of 






Inc.ependeht : Difference 


It 


Article 
to Total 


; : Company Store! 


Store 


Above or 
Below (-) 


; : Number" 


Aver-. 


Jsaribev 


Aver- : 


Article 


Pood Rir~ 


! Price' :of Qu,o- 


• Age ! 


of Quo-' 


age : Independent 




■chased(o) 


•Unit :tatio.ns Price 


•tations 


PricerStore Prices 


ir 


■ 2S.1 


:■ 2k lbs : 6 . 


$1,070! 


■ 4 • 


• 

$.970 11.0 


iraeal 


, 2,S 


Zk lbs. : k 


.65O! 


3 


.590 


10.1 


3 


0.2 


1 lb. : 3 . 


.075! 


1 U 


.067 


11.9 


ironi ! 


0.2 


7 oz. pkg.t 5 


.056 


! U 


.050 


12.0 


Led Oats ! 


■ 0.6 


! 20 z . pkg . : 6 i 


.037 


• U . 


.096 


1»0 


1 Elakes 


■ 0.1 


! St c.ndard pkg.t 6 


.101 


: U ! 


,089, 


13»H 


IS , navy 


l.S 


I 1 lb. : 5 : 


.069! 


3 '> 


,052 


18*9 


as, lima j 


0.7 


I -1 lb.' : 


— 


— 


■ — 


- 


t 


2.'^ 


t l-Hb, : 6 


.050 


i k 


. .050 


00.0 


ad 


■ U.s ■• 


! 1 lb. : 6 . ■ 


.100 


! U 


. .100 


: 00.0 


fee 


1,9 ' 


I ■ 1 lb. : 5 . 


.230 


! 3 


! .205 


12.1 


atoes, white 


• 9.S 


: 1 lb. .: 6 


.027 


! h 


1 .023 


22.7 


ons 


0.9 ^' 


t 1 lb. : 6 


.055 


! U 


: .035 


: 00.0 


k, evaporated 


2.1 • 


; Small Can :: 6 


.0U3 


: U 


! .035 


22.8 


atoes, canned 


; 2,2 


; #2 Can :: 6 


.100 


> h 


! .100 


: 00.0 


n, canned 


o.s 


: i2 Can .: 6 


.125 


! U 


I .100 


: 20.0 


,s, canned 


0.1 


! #2 Can:: 5 


.120 


. 7 


: .117 


: 11.1 


■ Salt Bellies 


1.7 


: 1 lb. ;: 6 


.159 


'. k 


: .116 


: 37.0 


■i 


: ' l.S 


: 1 lb. pkg. 6 


• .116 


: U 


: .100 


: 16.6 


iese 


:' .k 


: 1 lb. ;: 6 


: .300 


! 3 


: .2S3 


: 6.0 


js, fresh 


'.■ 1.2 


: 1 doz. ■• : 6 


• .2U1 


: 3 


: .193 


: 2U.8 



I Aggregate of,' 'weighted average prices: Company stores, 3^*755; inde- 
pendent stores, 31 1 ^63 • Percentage difference, 10. i+ per cent. Data 
collected July 10, ll', 193^ ■ ■ 

New River weights used by U, S. Coal Commission, Op. Cit., Pt.III 
pp. 1526-7. ' 



16224r.ll3 



. -. TA3LE . : ■; 

coiffASi SOU OP r::i?AiL prices of foods ik go: baj-i" ' stobss akd 



INDSPSITDEIIT Si'OIffiS-IK THE VfSSTSRN ViEGIil 



A DISTRICT a/ 



Article 



^i of : 
Article : 
To Totr.l: 
Food Pur- 
c"nr.sec"'.("L)) 



Price 
Unit 



Com-pF.ny Store 



NumterrAver- 

Of Quo- F-i^'S ' 

tat ions Price 



'Percentage 
Independent :Dif f erence 
Store : Atove or 



i?ur;oer: 
of Quo- 
tc.tions 



Aver- Below (-) 

age : I ndependent 
Price Store Prices 



Flour 

Cornmeal 

Rice 

Macaroni 

Rolled Oats 

Corn Flalces 

Beans, Navy 

Beans, Lima 

Sugar 

Salt 

Bread 

Coffee 

Potatoes, yhite 

Onions 

Cabbage 

Milk, Evapora.ted 

Tomatoes, Canned 

Corn, Canned 

Peas, Canned 

Salmon, Canned 

Peaches, Canned 

Round Steak: 

Chuck or Pot Roast 

Loin Chops 

Smoked Ham 

Smoked Bacon 

Dry Salt' Bellies 

Frankfurters ,' , / 

Pork Sausage 

Lark 

Butter, Creamery 

Cheese 

Eggs, Fresh 



2S.1 

2.G 

.2 

.2 

.6 

.1 

i.b 

.7 

^.5 

2.3 

i.S 
9.6 

o 
■ J 

1.0 



2.2 

ri 
• O 

.1 

.2 
I.l 



■l;0 

i.9 

• .5 

,6 

1.7 
.3 
\\ 

I.S 

1.2 
,\ 

1.2 



2U Ihs. 
25 Ihs. 
12 oz. cart 
7 oz. pkg. 
Sr-all pkg. 
Standard pkg. 
1 lb. 

1 lb. . 
1-1/2 lb. 
1 lb. 
lb. 
lb. 
lb. 
lb. 
Large Can 
-k?- Can 
ir-2 Can 
i/-2 Can 
Strnda^rd Can 
:'o,2-l/2 Can 
in UCj syrup 



lb. 

lb; / 

lb. 1 

lb. 
1 lb. ; 
1 lb.- 
1 lb: 

lb;. : 

lb. pkg. 
1 ib. 

1 lb. ; 
1 d03. 



1 

1 



11 
11 
11 

9 

11 
11 

7 

11 
11 
11 
11 

11 

10 
10 
S 
11 
11 
11 
10 

10. 
S 



10 
11 
9 
7 
10 
11 
10 
10 



$1,230 
.636 

.079 
.07U 

.09'i 

.035 
.070 

.153 
.030 

.100 

.206 

.033 

.06b 

.036 

.07S 

.102 

.136 
.i')i 



.250 

.iSl 

.214^1- 
.30U 
.307 
.153 
.195 
.170 
.120 

.jjOo 

.2S0 



11 
11 
11 
10 
11 
11 



11 
11 
11 
11 
10 
10 
7 
7 
10 

11 
10 
11 

11 

'\ 

' 6 

9 
\ 

9 



9 



$ : 
1,226 

.595 
.070 

.057 
.095 
.099 
.065 

.lUl 
.050 
.100 

.191 
.025 
.053 
.031 
.07U 

.lOU 

.106 

.120 
.lUii 

.225 

.200 

.137 
.212 
' .2S7 
.272 
.lUg 
.1S2 
.205 
.109 
.33s 
^279 
•. 202 



0.2 

6.9' 

ll.U 
29. g 

- 1.1 

- U.l 
7-7 

S.5 

0.0 

0.0 

7.S 

32.0 

13. s 

16.1 

- 1.9 

7.5 

13.3 

^.9 

11.1 

. 25.0 

17.5 

15.1 

5.9 

12.9 

3.^ 

7.1 
-17.1 

10.1 

S.9 

o'.3' 
11. u 



independent 



a/ Aggregate of weighted averrge prices: Company store, U2.7711 

stores UI.S70, Percentr/;e differences 2.1 per cent. Data collected July 19, 

20, 23, 193^. • ^ , , 

b/ Kew River weights used 03- the U. S. Coal Con dssion, Op Git. Pt. Ill pp.l52b-7, 



16224-114 



TABLE 

• •• 

COI.IEAHI SOI : OP l E TA IL PBIC ES OF FOODS I H COuPAl'ff STOflSS AJMD 

IICTEPSITI^rilT S'JOHSS IIT THE FAIK.iOOTT 3ISTHICT lU TfEST VIEGII'TIA a/ 



Article 



^j of 
Article 
to Total . 
Pood Par— 
chased "b./ 



Price 
Unit 



Company Store 



Numtier 
of Quo- 
tations 



Aver- 
Price 



Independent : 


Store : 


ITui-foer . 


Aver- : 


of Q;ao- 


age : 


t at ions 


Price : 


■ 9 


$1,130: 


■ 9 


.073: 


10 


.092: 


s 


-.097: 


10 


.086: 


9 


.6U9: 


6 


-.095: 


10 


.1)43: 


10 


.OkZ: 


10 


.ogg: 


10 


.209: 


10 


.02'4: 


s 


.05S: 


9 


.06g: 


10 


.097: 


10 


.106: 


9 


.122: 


10 


.152: 


10' 


.202: 


k' 


.1U2: 


7 


• .166: 


7 


.3S3: 


7 


: .286: 


g ■ 


: . 261 : 


9 ■ 


.lUO: 


5 . 


: .158: 


10 


: .118: 


9 


: .323: 


10 


: .227: 


9 . 


: .251: 



Percentage 
Difference 
Above or 
Below (-) 
Independent 
StorePrices 



?lour 

^ice 

iacaroni 

:iolled Oats 

Dorn Plaices 

Beans, Navy 

Beans, Lima 

Sugar 

Salt 

Bread 

Coffee 

Potatoes, white 

Potatoes, sweet 

Onions 

Milk, evaporated 

Tomatoes, canned 

Corn, canned 

Peas, canned 

Salmon, canned 

Peaches, canned 

Chuck or pot roast 

Rib Roast 

Boiled Ham 

Sliced Ham 

Sliced Bacon 

Dry Salt Bellies 

Frankfurters , 

Pork Sausage 

Lard 

Butter 

Cheese 

Eggs, fresh , 



9.1 

r' 
.0 

.6 
,h 
.1 
,k 

.5 

13. U 

2.^ 

10.0 

1.3 
12.2 

i.U- 
1.9 
.9' 
.3 
•.U 
.1 

»2 



.6 

1.3 

1.0 

.1 
1.2 
.5 
.5 
.9 
1.0 

.3 



2U lbs. 
I'lb. 
7 oz. pkg. 
20 oz, pkg. 
Standard pkg 
1 lb.. ' 
1 lb. 
1 lb. 
1-1/2 lb. 
, 1 lb. 
1 lb. 
1 lb. 
1 lb. 
1 lb . 
Large Can 
V^2 Can 
#2 Carf 
7i'2 Can 
St^Jidard can 
iTo. 2-1/2 can 
in hO'fo syrup 



lb. 

lb. 

lb. 

lb. 
1 lb. 
1 lb. 

lb. 

lb. 

lb. pi'g 

lb. 

lb. 

doz. 



1 
1 
1 

1 



1 
1 
1 
1 
1 
1 



10 
10 
10' 
10 
10 
10 
10 
10 
10 
10 
10 

9 



9 
10 

10 •« 
10 
10 

10 
10 
10 



9 
10 
10 

10 
10 
10 



$1,180 

.079 
.115 
.09!^ 

.050 
.09U 
.150 
.050 
.100 

.226 
,026 



.070 
.070 
.109 
.107 
.i2h 
.156 

.202 
.166 
.172 
.UOl 
.287 
.286 
.167 
.166 

.155 
.IU2 

.233 
.256 



8.2 
25.0 

• 3.1 

2.3 
2.0 
- 1.1 
1+.8 
l+.l 
2.0 
8.1 
8.3 

20.6 
2.9 

12.3 
0.9 
1.6 
2.6 

0.0 

16.9 

3.6 

U.6 
0.3 
9.6 
19.2 
5.0 

5.9 
2.6 

6.0 



a/ Aggregate of vei'-::hted r.verr,ge prices: Company store, , 17.703? independent 
store, 16..9U2. Percentr.G-e difference U.5 per cent. Data gathered August 
21, 22, 23 193U.' 

b/ Connellsville vfeights n.sed by U. S, Coal Commission, Op.Cit.Pt. Ill, p. 15^9 



16224-115 









TABLE 8 












COIPARISOi: 


OP RETAIL P 


IICES OP 


POODS 


FT COi.J'Ar.T STORES 








AilD IITDEPE 


^i)ei:t s:^o;^es ir 


THE 






SOUTI 


ILR" WEST VIRGIj:J].A 


AI7D pikE oouiit: 


:, KENTUCKY DISTRICT (a) 




















Pe 


rcentage 




f. of 










Indepei 


ident 


Difference 




Articl 

To Tot 


e 
al 




Conpany Store 


Store 


Ab 
Be 


ove or 


Article 


ranber 


.•Aver- 


ITioinber 


:Aver- 


lou (-) 




rood ? 


ur- 


Price 


of Q,uo- 


-: ago 


of Quo- 


■;. ■^&i 


• Independent 




chased(b) 


Unit 


. tations 


tPrice 


■Gatir.n 


-;: prices 


St 


ore Prices 


PI our 


28.8 




24 lbs 


2rj 


$1,270 


: 13 


.■'1. 220 




4.1 


Cornneal 


3.9' 




10 lbs 


27 


.320 


: ■ 15 


• .290 




10.3 


Sice 


0.3 




1 Ib.pkg 25 


.083 


15 


• .080 




3.8 


Liacaroni 


0.3 




7oi.pkg 


14 


.079- 


■ 13 


: . 075 




5.3 


Rolled Oats 


0.6 




20oz." 


28 


.098 


15 


.095 




O, ci 


Cornfl aires 


0.2 




3tandardPkg27 


.100 


■ 15 


: .090 




11. 1 


Beans, navy 


2.2' 




I'lb. 


26 


.069 


: 12 


. . 062 




.L -i- 'ft o 


Beans, lina' 


0.6 




I' lb. 


25 


.108 


• 13 


.009 




9.1 ■ .. 


Sugar 


8.1 




2- lb. 


27 


.153 


15 


• . 143 




7.0 


Coffee 


1.8' 




1- lb. 


21 


.213 


14 


.203 




4.9 


Potatoes, ^Thite 


10.2 




1 lb. 


25 


.030 


14 


. .025 




15.4 • . • 


Potatoes, sweet 


1.0' 




1' lb. 


22 • 


.064 


13 


. .055 




16. 


Onions, \ 


l.l' 




1- lb. 


26 


.064 


15 


.055 




1£ 


Cabbage 


1.3 




r lb. 


26 


.036 


14 


.033 




9.1 


Apples. 


3.7 




1 lb. 


23 


: .049 


14 


.049 




0.0 , , 


"lonatoes, fresh 


0.4 




1 lb. 


25 


.073 


14 


.064 




14.1 


Hi Ik, evaporated 


2.5' 


Large can 


27 


.078 


15 . 


.073 




6.S 


Tonatoes, canned 


2.1 


No. 2;; can 


'23 


.154 


12 


.•146 




5.5 


Corn,ca;.ined 


o.g 


Standard Cj 


m 19 


.112 


IS . 


.099 




13.1 


Peas, canned 


0.2 


Standard C? 


m -17 


. 152 


11 • 


.■146 




4.1' 


Sauerkraut cannt 


3d 0.2 


lld.2t can 


24 


.158 


14 


.143 




10.5 


Salnon, canned 


0.2 


Standard C; 


^\ 24 ■ 


.171 


15 


.143 




19.6 


Round Steal-c 


.7 




1 lb. 


■25 • 


.267 


12 


.:263 




1.5 


Loin Steal- 


.6 




1 lb. 


23 - 


.290 


9 


.:270 




7.4 


Chuck, or -got ro; 


istO.3 




1 lb. 


■23 


.172 


10 


.176 


- 2.3 


Rib i-oast ' • 


0.6 




1 lb. 


■22 


.193 


8 


.235 


- 


17.9 


Plate Roast 


0.7 




1 lb. 


17 ■ 


.135 


1] 


.107 




26.2 


Loin Chops 


1.7 




i lb. 


27 ■ 


.254 


15 


.251- 




1.2 ' . 


Boiled Han 


0.3 




1 lb'. 


' '^O 


.426 


15 


.418 




■ 1.9 , •■ 


Snoked Han 


- 




- 


- 


- 


- 


- 




- 


Srioked Bacon 


1.2 




1 lb. 


•17 • 


.226 


12 


.219 




3.2.-. ■ 


Drjr Salt Bellie 


3 1.9 




1 lb. 


•26 


.172 


13. 


.164 




4.9 


PranJccurt'ers 


0.3 




1 lb. 


■23 


.193 


13. 


.176 




9.. 7 


Pork Sausage 


0.4 




1 lb. 


- •■ 24 


.196 


12 


.155 




18.8 


Lard 


2.6 


1 Ib.pkg. 


26 


.132 


15 


.120 : 




10.0 


Butter 


1.0 




1 lb. • 


26 


.364 


15 


. 336 ■ 




8.3 


Cheese 


0.5 




1 lb. 


24 


.247 


14 


.231 : 




6.9 ■ 


Eggs, fresh 


1.8 




1 doz. 


26 


.280 


15 • 


.271 : 




3.3 


A(a) Aggregate c 


">f aver 


age prices r 


iiiltiplie 


5d by tl 


leir re? 


jpective weights: 


Conpanj'- store, 


42.369 


; independeni 


: store, -^ 


LI. 740. 


Percen^l 


:age difference in 


v/eighted aggre^ 


jates. 


4.6 per cen1 


:.Data gf 


ithered 


August 


16-24,1934 




(b) Average of 


Kana-Tha ai 


id i-IeiT R: 


Lver v/ei; 


,hts use 


3d by U 


S.Coal C 


Jommission 



m 4- T14- T T T -.^ 



1 Ro.q_i '-■,%a 







TAJ3LS 10 










COITARISON OF RETAIL PRICES OE EOODS liT 


COIIPAllY STORES 




AilD IITDEPENDEITT STOESS 11' TPIE I.IIITGO DISTRICT III TJEST VA.(a) 












Percentage 




: ^io of 








Independent • 


Difference 


- 


: Article 
:to Total 




Coranany 


Store 


Store 


Above or 


number 


Aver- 


Kimber 


Aver- 


BelovT (-) 


Article 


:Eood Par- 


Price 


of Quo- 


age 


of Quo-: 


age 


Independent 




:chased(h) 


Unit 


tations 


Price 


tactions 


Price 


Store Prices 


ur 


i 28.1 


24 lbs. 


9 


$.694 


8 : 


$.652 


6.4 


nmeal 


: 2.8 


10 lbs. 


10 


.327 


10 : 


.291 ! 


12.3 


e 


; ■ • .2 


1 l"b. 


10 


.079 


10 


.073 


8.2 


aroni 


.2 


7 oz.pkg. 


10 • 


.084 


10 


.063 


35.4 


led Oats 


.6. 


20 oz.pkg. 


10 


.095 


10 . 


.095 


0.0 


n Elakes 


:i 


Standard "okg. 


10 


.097 


10 ^ ■ 


.093 


4.3 


lis, nays'- 


1.8 


1 lb 


8 


.073 


9 


.060 


20.0 


US, lima 


.4 


1 lb. 


7 


.103 


4 


.102 


0.2 


ar 


8.5 


1 lb. 


10 


.155 


10 


.150 


'7 m 


t 


2.3 


lylb. 


10 


.050 


10 


. .050 


0.0 


ad 


4.8 


1 lb. 


■ 10 


. .100 


^ 10 


.100 


0.0 


'i'ee 


1.9 


1 lb. ■ 


. 10 


; .236 


.205 


15.1 


■atoes, white 


9.6 


1 lb. 


10 . 


■ .035 


10 . 


.028 


25.0 


.ons 


0.9 


1 lb 


9 


.065 


10 


.058 


12.0 


-k, evaporated 


2-.1 


Large can 


10 


. .079 


10 


.73 


8.2 


latoes, canned 


2.2 


#2 can 


10 


■ .130 


10 


.102 


27 . 4 


:n, canned 


0.8 


#2 can 


10 


.130 


. 10 


.112 


16.0 


IS, canned 


: -1 


#2 can 


10 


.157 


8 


.118 


33.0 


Lmon, canned 


.2 


Standard can 


10 


: .173 


8 


.146 


18.5 


aches, canned 


1.1 


No.2Tt Can in 
















40^ syrap 


■ 10 


; .235 


' 10 


.226 


3.9 


and Steak 


1.0 


1 lb. 


4 


." .276 


3 


.267 


3.4 


in Chops 


1.9 . 


1 lb. 


9 


: .247 


8 


,222 


11.2 


ilea Ham 


.2 ' 


1 lb. 


7 


'. .400 


7 


.400 


0.0 


Dked Ham 


0.5 


1 lb. 


6 


; .308 


: 5 


.298 


: 3.3 


oked Bacon 


0.6 


1 It.. 


' 8 


; .306 


8 


.291 


5.1 


7 Salt Bellies 


1.7 


1' Vo. 


■ 10 


; .166 


10 


.156 


6.4 


ankfurters 


0.5 


1 lb. 


9 


: .197 


8 


.201 


- 1.9 


rk Sa'u.sage 


0.4 


1 lb 


■ 10 


: .200 


8 


.157 


27.3 


rd : 


1.8 


1 Ib.pk 


S- 10 


: .134 


10 


.123 


8.9 


.tter ; 


1.2 


1 lb. 


• 10 


: .380 


10 


.355 


7.0 


eese .. 


.4 


1 lb. 


' 10 


: .285 


9 


.235 


21.2 


;gs, fresh . 


1.2 


\ 1 doz. 


9 


: .292 


8 


.267 


9.3 



a) Aggregate of vreighted average prices: Company store, 44.812; independent store, 
41.504. Percentage difference 7.1. Data gathered August 15-17, 1934. 



b) IJeTT River vreights used by U.S.Coal Commission, Op.Cit . ,Pt . Ill pp. 1526-7 



16224-117 



s 



EH 



EH 

B 



n 



EH 

fin 
<l 

to 

l-H 

P4 CO t3 

E-i H 5^ 

g K fo 

R <i! O 
ts; Ph o 

H l-H 

O EH 

O 1^ 



!>H 
P 

r-1 

n 

hH 
00 
CO 

■=31 

o 



CO 



o 

EH 
10 

P-r 

o 
o 



EH 

o 

n 
o 

n 

w 
p-1 

P-, 

(i-i 
O 



cJl 



Ph . 



EH 

m o 

HH 

PI 



Pi . . 



EH 



Ph 



^ 






o 

^H 



o 



EH r^ 

o '"^ 

EH rt 
O 



^ 









o n 

o 

o F=( 



16224-118 



Ph 

(D 

<H 



CD ro 

•H n 

Ci «H 

P-l O 

e 

O i^ 



I 



Ph o 

•H 
(D CfH 



■ rH 

o 

O 
Pi 

m 

u 
o 



o tH 

+^ 

CO 

o 

Q) 



G) WD 
> OJ 

O 



&0 CO 

CVI >j, 

I n5 

ai p 
c\j 

iH en 

^xj P 



rH 'Si 

i >? 

H P 

rH Ml 

«j n 

(.i 

J R 

r^, ;>) 

!■ to 

rH R 

CO 

O <^3 

■ P 



rH 

+3 
o 

EH 



+2 

H^ ^i) 

(P o 
5-: P 

cri 

P T^- 

CJ 

OJ -H 

O -H 
^ O 
jS Gil 

m in 
o 

Th CD 

o > < 
w W • 
ch w 

O CD 

'H 



cS 

P 

e: 

• o 

o 



;^ 

H^ 
O 



CO 

0) ^ 
U (D 
a:: CD 

l£H I. 



1 ^^ 

•H -::i 

CD b 



p 


O 


CD 




t: 


CD 




&H 


c- 


Pf 




^ 




ai 


CD 


tj.' 


s-. 


Q) 


O 


o 


t- 



. 03 
-p 
o 

EH 



tJ 



.>t, CD 

+3 cd 
en +3 
pj CO 



>J3 



;ir 



iP 



I 



I 1 I J I I I I I t I I I I I : I t I t I I H 1 



I I L<^ I I I I I I I I I I I Ln I I I I I I I rH I 



! I r^ I I I P I I cvJ I I I I o I I 1 I I I I r— 

: p P 



f^ iy> J- [-0 c\j J^^ o ^"^ vjD p rH ir^vx) to to t^ i i ^ ^ i ka i 

LTn P I— ■ r— rH C\J C\) CM 
K> . H ■ 

r— r^ p rH -r-i I o P Lri'X) -rH CM to I 1^ I ^~\ I I r-— r— I I — i 

CM -rH . CM U3 O ir> 

OJ rH 

llhO'hOP 1^ I ir— |CM I. \ ^ ICO^J-t^CMrHr— 1^ 

r<^ rH' • • P P 1^ 



I I u-^ I. I I I I I ru I rH I I CM J I t I I I I O r^ 



I I ^- I p .J. p I I P I I I I ^ X I I I I t t 00 I 



O O to I^ ir\ f'-^VT) LPv 0\^ CVI VO K-\ViD >.r)tObOJ-^^N~\ptOI 
PPKM^ cTv !.r^rHK^Lr^ cmojlc^ 

UD . H OJ H 



. I I OJ 1 I 1 I I I I I I I I OJ I I I I I I I o j- 



I I I I I I I I I I 1 I I t t I I I I t I t I I 



o,: cm OJ to r-— p- i ^- i ■ oj ctmt^ co lo;V-0 oouDr^j tr^oonr— p 

p-' Q"^ rH r— rH LC^ . i-o 

c\J T-\ 






<T 



to to to o H j:^- r^, L^^ r— OJ K) p- to l o^ ou lop- p- o O I cj^ p 

ITM^ CO to P O 00 CM U3 

. p- ■ CVI 



ItlllllllllllllllllppIPI 

p 



r-i o O' to ^- ir-,.rt o lo, ctv iH k>>J3 i-o»~D t^totop-p-p- rnp r— U3 
LT rH rH ir\ r^ ■ O V.O iH ^<-^ v_o cm oj lc^ 

crl ;VD rH P CM r-\ 



r-{ P 

c(3 03 ct 

O -H O 

O S C3 

cti 

CD 1> CQ 

•p P r-3 

•H >v O 

O .CO ;;, 



CtJ 
•H 



W >a 



!h ;-■ f. 

P CD f:! 

-P P, -P 

^ -rl 

■=5! P 



o 

03 ^ 

C ft 

cS ^ P' 

03 P r-i 

P O rH 

■=TJ O 1-1 



CD 
CD 
CO 



o 


m 


I"*a 


to 




:=i 


_j^ 


CO 







p 




O fl 


S 


'S 


[H 


r^ 


•H S 


r; 


CD 


Gl 


P 0) 


CD 


+^ 



(25 O p E-t t> 



03 

•H 

■rl 'H 
Ui) P 
fH CO 

■H Oi 



D &J) 
-■> Sh 



CO 

!h 

(D 

WP 

S -P 

■H O 

O r-h 

>>, P 



iD rH 



P 
0) 
CD 
4^ 
CO 

aJ 

c-J 



pi ^ o ^ 



o 
o 



O 

u 

l-H 



O 

cti tJ 
S td 

jQ o 
tu rH 
O 
O 



in 
CD 
P 



O 

tJ) 

03 
Ph 

+3 
M 

CD 

o 

CD 
•H 
O 

o 


P 

'^ 
EH 



to 

to 

CD 
O 

CD 
P 
■P 

«H 

o 

CD 



tjH 

o 



■H 

03 
o 

■H 
HJ 

CO 

CD 



o 

;h 

t(H 
CD 



O 

o 



^ 






9 

CO 
M 

CO 

p 



I 



CO 



to a 

=^ O 
Ph o 

St-. 



r. 
1— I 

CO 
CO 

■=1! 
o 



Ph J- 



■^ H CT 

Ph W iH 

EH 



o n Pi 



CO 

p. 

o 

CO 



N 



^ 


fil 


P-I 


Ph 


pr| 


>i 




Eh 


< 


^^ 


1— 1 


Ph 


<1 


fS 




Ph 




P5 



8 

o 



EH 

ri 
o 

Ph 
P-1 



F^ ri td 
o <^ p 

:^ CO i -i 
EH p rl 
£^ ^i 

^K 



o 

Ph EH rt 
O 
Fh c5 pq 

°5co 

mop 

S O pTH 

5 <! o 



H 
CD 

:^ 

•H 






CO 
Q) 
•H 

Pi o 

rl 



<D 



u 

Ph CD 

•H 
<D tH 

O 



Ui 
CD 
fn 
O 

CO 

ch 
O 



■H 
O 
CD 

&' 

u 
o 



Cfl 

n 

CD to 
> CM 
O 



CO 

C\J tfl 

C\J c6 

CM PI 



CM 



CO 



rH CO 

I h 

CM nj 

rH R 



' & 

CO R 

CO 

I "5 
jj- R 

CO 
K^ !> 

I cG 
A R 



'5 
-p 
o 



A' 
<D CD 

5;^ ^ 

Ph 'd 
CD 

(D -H 
CO tn 
O -H 

t CD 
Ph 

CO CO 

CD 

fn CD 

O > 

•P Cj 

ch 00 

O CD 

•H 

fH rt 

CO 



fe o 



>. 



^JD 






r— 



O"' 



U3 
CJ^ 



■4-11 i) 



CJJ 

o 

EH 






•p 

CO 



CD 
-P 

ClJ 
HJ 

CO 



t 1 t I t t t I 1 t I I 1 I I t I t t I I I II 



I I I I I I I I I I I I I I H I t t I t I t II 



I I I I rH I I I I I I I 1 I L^^ 1 I 1 I I I I rH rH 



^IIICMCMrHHCMIrHfl. t^liHCM^rHIrHJI 11 



rHr-^HJ- |rHtr%rHC^JrHrHrHOJtO,-d-rHHCMrHH I t J-J" 

rH H 



r^ r^vri i i v.d i fH rH i rH rH vjd k-\ i m ro co U) a^ o t^ j::)- ^ 

r^ rH rH ^ 



rH I rH J rH to rH rH I ^'~^ t I -to I t r K^ to rH 0.J CM r--^ ^ J" 



t t I t I I I <M I t I I I I t I I I I I I I 



c^^U) CO ^ ^ t^ r^uD u"^^ rr^ cu cr\ cm rH ,=i- O '3> to r^ cm ^d 

H rH H rHHrHrHfOHCMj:!- 



I I t t^ CM rH CM 1 1 rH CM I | lr^ Q-^ t^ I | 1 I I I 



1 t I t t t I I I I t I I I I I I I I I I I 



^-^^- r--irH H ltm "-n cvi r'^ i rH J rH rH 1 m ,-;- I 1 I I I 



vn (J^ CM t VX) CM 1^^ CM I CM CO ^O r--^ J LfMiO ^- ,-i'- I I 



I ir^lrHjd-lrHIrHI I I I I Ir^^OL(~\C7^ t^V£> 

CO H rH ^ 



CTi^iD CO ^ ^ VD 



I — vx> li^^ t^cMCi>c\JCMj-OrHcr\i^ r<~\vn 



■P Ci 

O CO fi t'., S 

O Oj fn Ci3 M <^ 

^_^ CO O ir) O -ri 

q tH -rl O pi to 

u en -H f-l ^ -P .H 

© ^-^ rH O C3 rt pi 

/3 ^H rj rH Ti CD O 

C -15 O r=H l-H M 1-^ 

l4 






rH rH rH 



rH COrH CM J- 



q -H 

(Z CO 
W) CO 

•H -H 
^ CO 
O W 



o 

U (D 

Cti CD Cti 

O CO .H 

crj S 



O ^ CD .H CO -H 



r! -H CO 

O W) Pi fn 

-p fn -H CD 

bS} -H CO ^d 

■ > C! -p 



• H -H 

H r-l 

O O CO 

U St u 

Cti Ct; CD 

c\3 o o ^ 

4J 



O O CD t£ ^ ^ O 



CDplrlfHoCOCOCOH-HOfHfJrH 



r-H b -H CD Cj CD 'H rH HJ CD O O 
l~- -4 'ri C '^ '^ 
CD 
EH 



O CO CH !> EH : 



I I 



h^ r^ 



I I 



I t 



CM OJ 



c^^ CT 



CM c\j 



r^ K^ 



CO 

pj CO 

O CD 

<D -H 

3 -P 

iH CO 

'-^ 'A 

CD n:-: H 

CO n <3j 



CO 
pi 

CO 

(1) 

O 

CD 
.q 
+3 

«H 

o 

CD 
U 



Fh 
■H 

Ci; 
P! 

p; 

o 

•H 
-P 

CO 
CD 
0, 

c' 

E 
o 
u 

■xi 

CD 
rH 
•H 

Ph 

C 

O fiC 

C.T f.) 



•tdJH rH 






n U4 



H 1-3 



EH 



16224-120 



M 



cr 



rH 

-p 
o 

EH 



1-^ rf 



Co 
-P 
O 



to 

-P 

fi 

PI 1^ 

o o 
o 

Ui o 

CO 

CO rci 

o a 



H 

d 
-p 
o 

EH 



rti 




Ph 




Oj 




rr 


-P 


■jj 


crt 


m 


-p 


^j 


C/3 



in o 

(D ■=:) 

TO Tj 

O cS 



-p 
o 

EH 



fl ^ 

o o 

o 

CO 

o 



w 

rH 



CD 

O 
I-) 

Ph 

s 



O'- 



er) 

0) 

o 



'Hi . 

•Hi O'^ 

P-: 



•fa 



OJ- 



■=>1 W 



OJ 
LO 



-C/i 






OJ 



o 

•H 
Hi 

r-1 



CJ 
rH 

CO 






O^ 
-£0 



CO 
!H 

c; o 

■iHI • 

-Hl.-H 

Ph -C/3 



o 
i-H 

CO 



01 

-p 

o o 
o 

to o 



(D 

o 

rH 
& 



< H 



CD 
CO 
Li rd 
O 03 

rq PI 



r— 

>J3 



p5 -m 



I — r^MD ow30J^cn^-oo^<~^L^^ lTn J- oj 
OOu^MOcnr— i^r^K> in j- co rH cr^ . _ 

LT^LOvOCOCnCVI K-\r-<-\I^rH K^r— to H OJrHCO 



- - cvi o '■~- f^ t^ L£^ 
CM CM I — or— cp\-d- 60 cr 

rHrHJ-^O^r— Crv60 



(M (M XX) CT^ to Jt G OJ |v^,^- Lr> O CO Cn^ ^rHC0t0r^r<^>Or^C0LnC0 
LO Lr> rH J- O ,r|- O Ln CT\ rH r-^lvD t^LOrH CMCOJ"^ CM N^CTiCT^H rH 
'X)MDLr^K^r-^rHO""^r^C\JCMJ-r^COC^JOJ-rHtObO^--OJJ-U^r^COCM 



rH rH 



fs 



o~\ 






CM OJ 



^D 



!;0 to CM LT \ OJ 1.0 CO 

rH rH Jj- hO rH rH ir'\ 

LOi rH H 
CM 



^ O 1^^ rH 

r^ I — ^ o ^'^ 

ir\^- UD rH rH 

CO ro r<~\U3 

rH 



if^vx) 0--1 r— r— r^ r~- ho^ r-i o m j 

rH r-t CO iH ,:j- ,-rf ^ r^ rH CO 0^.=f ^ 
rH O U3 lOUD >o3 rH r— J- CO 0"N r— CM 



U3 



U3 VD LT. H P<-> C3^ J- 
CM OJ ^ 



r^ 



rH r-l H cr\ r^ O "-X) LP, r— CO CO rH u> 
CM CM ^i- O CO O^ 0"^ r-o O K ■, L^^'^ ^^ 

i^r^CM cr^ c J Ko ^ Ks> r^co r-^j- lc^ 



Lr\c7>K>rH K-\r^Lr>i-^cM N^^Hvn cm 
r—^jDVD CM o\a^<-i CO r^iTi^-r— r-- 
t^. CJ^ h- CO r<^ r^U) cm r^ co cTv r<-% O 



h- I — f-~jt K-i to CM r— o r~- r^ o u^ 
r'-^ r<^,^D r-t t-^,vD cp; oj i--,^ 0"> J- co 
rH rH o K> oi ra o ■. K^^-:^ co u) ^ r— 



rH en Cr\ TM K>, iv>, t-o o OJ r-i (j\ir\r~- 

LC^. rH r- CM CM CM r^,^ CTv CO rH CPi O 



rH r-H CM 



UD 



H 



CM 



o 

CM 



r-i rH J- r^ 



o 

H 



CM 



LTMO, CO C\J H Cn^ J- CM LT, r— U3 j:t 
'JD >X) cr\ CM CO O tO-^1 O^OAO^O r^ 

ro K> r— CO Lr^ rj r— • co co r— to co aid ■ 



CM H CM <y\^ .^ r- H U3 VD rH VT) r^ 
O OJ J- jrj .CM, OJ U3 rH LOi t-^ Ln C3^ J" 
CM ^ rH t — CM CM W r^ Lr\ O^ rH vx> t-^ 



O O Lf^ CM 
rH rH >^-0 IT'. 



OJ O rO CM L^^VX) 
H 



OJr^H^CMLI^OO 
rH >X) H rH 
rH 



oi t-o 0"^LC^ rH CM 

K^ CM CM OJ 
H 



CM CM o -ri" o". r-^ •-{ s^^ (T\ co ^- 
r~ r>- r— co u:^ cj o-\ h- C)M — oj 
o^ o" i'^o ir^ K , ir\ CO r- rH o■^ u■^ 



rH >- rH ">-0 0~MC^ O O m UTs CO CAUTi LOi O 

CO l^^ CO CJ CO V.O I — r— >^o '-X) a> cm i-^ud ^• 
LO'^ OJ N 1^ u-^ o O CO rH V3 ^ ^o cp, r~ 



to CO OJ K^ CO OJ CM OJ 1-^ cm 1X^ O t^ CO to LC\^ CO CO CO LO ^''^ CM o to K- 
r-l ,-! O '-.O X- H X- V.O to cm Ol to O^ rH H H H H rH LO at hOU) C^ r— !-\ 
rHHUJtOCMCMtOl-OCvJ^vXlJit Lr>ViD OCOCMCMOJr— COCTiLO. rHF^O 



H LOrH 



lO 



Jd- 



CM 



rH rH I^O CM 



CTv 



CM 



rO I^O CM CO VD r~ K-\ CO to rH l-f^ CM J- O CM LOv O CO CO CO ^ ^ O LO O J" 
r- I — roVID ^ ^t I— r* \.t~- LC^ M > OJ cm U^ LO O LOVO UD CM'XjVDU) cm (3^CM 
0"^ CPiUJ O en r— .:d- LO rH ir\ rH LO O r-i^t V£) V.O rH rH '^ LO CO ^ LO rH O 



en CTv ro CO rH 
cm lO 



cr. 



to 



to CO en o f''i ro 1^ OJ lo o 
LO Lr, ^'^,-t ^.r r-i to t-o'^o ,zl- 
I — t-— CO to yo vo to i^- CO t^ 



I — ^ t~r\ rH CM rH O O '/5 J" 1^ CO CO CT 

rH O CMCM^CMCMCO ro 

CM rH 



rH OJ r^ CM r~-^ W3 o^ cA'-o 1^ ro ro'-o co >jd 
LO CO ro CO I-— o CO o o .-:: r-[ t^ lo lo cm o 
ro CO cni^o to co ^- o o wd r-— c^ o en c^ o 



to rx) OJ O lO'^D ^ o i^ ro 
O O >-..0 O cr\ rH L.O'^ o vn 
K-\ ro t~— I^- CM rO^O ^ lo rH 



OVDCOrHOO^VDV,OIOC^^LOO■^t^HOJ 
r-l H to m LO CM to O^ d CJ ^ r~- CM H ^- LC 
0-^V.J LOUD LO O CM O^ G'\ o> r- H o ai ^ r^ 



rH O CM 

v_o 



t^ 



en 

H 



ro 



CM 
OJ 



rH H lO^ H ^'- 



iH CM 



CM CM V£) CM UD lr^ ro o.' en r-— 

'H ■•H CO 'CO CO :Tv r-l l~~- .CO CO 
LO LO O ^ VX) O --rl" r-- LO Ol 



UArH^ LOLorocnr— r^oj Lor--roo r— cr- 
«D cn^ jit o ^ to ro ro^xi ro oj o^.z^ o O 

C\.' J3- J- CTi r^. r-t in ^'- J-, K^ CO-d" ^ o H -^ 



00 



^Xl ro CO rH 
rH rH O I-O 

, LO 



OJ 



a 

rH 



a 

CD 
FL. 



a 
o 
o 

to 
S 

■H 



Cv, 

fH 

o 



■ H CV! 

en 



o 
o 

^o•H 

o CD' 



CM 

en 
H 



r--rocMrH<J3 OJ r<^ai cu L^^lX3UD co r-i o>(M 
H i~o : rO ro J- rH OJ r-O H rH 



^ 



O M 



■rl -4-= o 

-1 rt t- .H 

-H CD ^Cl 



•H 



Is, o 



> 

CO 

q 

'b 



CO 

to 
0) 

K C\j 
CD 4^ 
E-l t3 



•H 



•H, 

n -H 

O qO 



CO 

(D 



fr.C • . - _ . . 

fi t:=- R -P 

•H -H O 

f4 PJ to o rH CD rH 
.H Cti CD 



rH 

CD 
0) 
+2 
C/.l 

Co 



o 

cti ;h 
O O 



CO 

c6 cfl 






a ® >., rH fi| rH Pi rH O ,0 rH U 
; t- 1-- <a{ Ph -<ii O ■=:! O a -^ <A 



c: rH CD CC ^ri rH 

Cj 



CD 
qC 
n3 
ft 

+= 

CD 

a 
o 

CD 

•H 
+2 

(3 
O 

o 



Cb 
EH 



CO 

o 

4^ 

«H 
O 

CD 
U 



r3 
,a 

CD 
!h 
■H 

c\5 

S 
O 

•H 
+2 
CO 

CD 

pi, 
e 

o 

fH 

TJ 

(D 
rH 
•H 

g-l 

O 

o 



o 



.Hi 



b.. 



cr 



o 

Eh 



w o 

(D -aj 

en Tj 

o ni 



03 



»^ 

r ^ 

o 

rH 
ft 

C 0) 
n3 PI 



M >H 



S I^H 



H 

M 



cr 



CVl 

cr 



nri t3 iH 



H 



pq CO 



EH 



m (ti 



■m 



CH W 



CO irMr>,r-co o a->crNO CO o^J- cr«w mJ- m^ u) KA en cr 
^^ou^aJco^^-lMK^ou^K^o^bog^^^5og^r^^-a^ LOiri 
ruvD Lr\r-i'^ J-^ LOO UDUD r^, c\j^ vx) a^^ r^O O ctn cr- 



16224-.131 






K>, lio oj K> r— U3 cr\ (jMr\ CM ^ <JD wd^ r^r^cncvi rH r-i 
"'OJ i^ oj-r" o r— GM — PU t^ rH vt) cpiU3 1^ r<~> H t<^C> to 






LO rH 



r^ 



LTvCTi 

^ OJ 
O CM 



>x> o iH r^ 

M O to CM 
J- CM C\J 



OOOtOli^C^r-rHOt^CO o 

Lr^ 1^ O O O CTi r^vjD r—UD cm o 
H ^-rH a^o^aJ oiJ- cr\K> i — ^ 






OJ 



CPiCM 



jd- ^ ^ r^ r^v.D CTv H O r^^ vJ^CM^HO^^c^^^<-^L^^ 



50 



0"^ cr 

CO OJ 



o^ cr 
r— P-J 

CM CM 



O iH HUD Lr^r-o^O 

to O LPi O ITA H t^ J- CM 

J- i-o Lc. ir> t— Lr\ H 



i-l CO ^ H 

0> LC> O 

H 



CTv LPv CM O^ Ol .Cr\ 
O O H CTvCri G^ 
1^ CO rH H O^^ 

M M •« •« 

r— OJ rH r^ 



^ r— ^ t^ H i-r\ OJ o o ir\^ 
Lr\co CM cococo^o lr^ J- to 

■ rH UD >-0 a.1 >X) OJ J- H 



CO cr\ H 

^ tA p^ to VX) CM 



OJ ^ H o Lr\o 

CO ii^ CM rM ^ iH 
CM ^ CO CO CO 



LTNCTi r-\ 

rH to r^ 
o-\crv H 



H 



OJ 



>vD rH V_0 

cr. CM 



rH O 



OJ 
rH 



C0r^OKM^rHC0r--Ol — CJCvJ^J^-CTv 1^"^ rH r<~\ t-o 

^-zi- cr! CA ic^ o H cMi 1-^ o ^- Lr> M p-v ct^ h v^ o^ r^g ka 
cMJ-oJ^f^cMlr\t^Lr^OrHK^C0Lc^r^HL^^H cM,t-r— 



OJ OJ 

oT cm' 



cri cr 
o o 

ix^ LT- 






rHCMocM^~-bOK^^^r^tooJOJV£)l^^K^OL^^cM ocni^ 

^- f?^ H LOU3 ^H LP, ^O-AH^r^COCOHJ- 



VX) H 



I^ 



>jDj-Lr>rHcr\Cocooo 

O LOUD VD r— O rH O O 

Lr^rH ■ r— LTMnojuDOJ 



LC^rHOOr^rHr^O LOiCOO 

t^uD cri Lc^ crvUD lo^ a^ rH o 

CM t— Cr\U^rH l^tO KM^^ r— 



CA O^ 

H 

cr\ oi w 

a 

o 



o o 



\£) ^ 


rH 


CO LC^ rH 






r^ CO oT 


..n 


rH 


o o 


LI^ LC^ 


UD UO 




CM 












H Lf^ 


H 


O 
H 


r^ H J- 


r-\ 




OJ VX) 


O Jd- 


O /-t 


CO 


LC^ O ^ ^ O CTi^ 


r^r-KMT^o 


o-\ 


t^ K^ 


I — 1^—^ CM 


L'^^CO 


r— CO 


o 


rH 


N-^UO KO CO 


o^ 


CO 


li". ^- r^ CO 


to CO 


UTi U\ !-'\ CO 


U'^ r•'^ CTv CM 


o 


^<-^co r^^ ^-^ 


CO 


rH^^ 


r— 


r^ r^ 


to li^ l'"N^!" 


CO OI 


LC^CM 


G^ r^ O i^- O r— 


,-;■ 


&",-:J-'^' 


CM 


to" 


h^ r-^ 


PJ CO 


^ to 


o o 


OJ 


K^ 


LP CO ^ Ln CO r'-^ o 


LTn 


^ OiUJ] 


LO 


CM CM 


CO ^ 


VD 


to O^VX) 


rH 




CO 


UD^-iJ- ,H 


CTitO 


a o ' 


OJ 


,^ 


o o 




«» 












r» 




rv 


»t «» 


rt 




W\ r 




r-{ 












rH 




uo 


CM rH 


r^ 




CM OJ 


cr r-^ 


(T\^ 


rrNCTiCO 


O 


O 


CPi to O rH ir\ rH 


lr^ ho O 


CO 


.;!■ 


VX) VX3 


LP. j" 


rH rr\ r^vD 


CO 


UAO 


!-\ 


O H O rH 


CTv r^ r^ [^ r^ 


^^^ 


CM CM 


KD r^ rH O^ ^"^ 0'\ 


^^^ 


LTvCO 


rH r- CO rH 


rH 


r^vD Lf^ CM 


r^ 


UD VX> 




CO 


H O 


r-{ 






LTM^ CM K> 


to"vD' 


r-— K> CTiUD 


^'^' 




H 


H H 










rH r^ 




O^ CM rH 


r^ r-\ 












rf 












(6 


SS 






""^ 








r] 






C3 






rt 


rt 






■7:5 








•rt 






•rt 






•H 


•rt 










•rl 




H 






a 






H 


H 




w 


i 




Q 




o 






rt -H 


m 




o 


O 


m 


■t! t/3 


nJ 


■ Pk 




in 


<D 




O bjO fl 


u 




Vi 


b 


rl 


b 03 


o 


^§ 


q -H 




rf 


(D 




rf 4^ fn -rl 


(u 




^ "5 


nJ 


03 


03 -H 


o rf 




O 


cn 




•H W -rt m 


^ 




n3 O 


o 


.j:! 


rt f^ 

ffi -P 


Cl-rS 


O -H 


tj3 m 


P! 




w 




fj S > rt 


•t> 




•H 




+= 


•rl O 


^.2 


•H -H 


O 


_rj 


Q) 


in 


•iH -rl O 


O 


(U 


W) rrt 


^ 


O 


rH W 


'rl fH ^ 
(15 O Cj 


^ w 


tlD 


4J 




c 


bD^ -P O 




rH 


fn -P 


+= 




^ ^ , 


i=l pi 


O M 


(U 


fd 


f^ 


K 


fH W M W 




•H 


O Ih 


p! 


H 


03 '■ci rH 


-2 [H '^' 


Q) O 


■H. -H 


!H 
O 


o 

CO 


(D 
EH 




EH 


•rl rj C; -H 

> 13 !r. {3 


03 
EH 


CD O 

ci) i^ 


O 

CO 


^ 


C3 rt r- 
W (-H -a 



O 
fH 



r5 
/^ 

03 

•rt 
OS 

!:i 
o 

•rt 
+3 

U3 

03 

& 

a 
o 
u 



^ 



ClJ") 1 
03 \j5 
.. CM 

>H H 



R-F-30 ■ eOt]TIDEKII:AL-GOFjSEM..I.mra E^FOaT FILE W, \ 

'■■,.•'■•'.■ ."■ ■ ! 

-TIE NA'Tl'ONia ELCOVERY ADHimSTEAIIOi ■ 

Washington, D. C. ! 

SPECIAL BEPOKT OF COlvIPMY SCRIP I 

I 

In accordance v/ith Sections 3a and. 5a of the National Industrial \ 
Eecovery.-Act, you are , requested arid required "to fill out the follor/ing j 
schedule. The: . information is lieing requested jy the National Recovery 
Actministration in order to obtain an adequate factual hasis for recom- | 
mendations concerning Article IX, Section 4, of the Retail Trade Code, ■, 
rclatin-; to the tise of, company scrip. A separate report is required I 
for each store. .' , ., ■ I 

Ans'.ver all the inqviiries in , detail , supplyin,,^: estimates if records i 
are not availahle . T]ae report should be retu.rnec- promptly, in the en- j 
closed envelope, requirin,^ ho po.stage, to the Bureau of the Censiis, ■ 

Washing-ton, D. C. The adf.itional schediile is for retention in your fileis. 

This report v/ill oe avrdla.ble only to sv/qrn employees of the Bureau 
of the Census and the ITational Recovery Aoxnini strati on. Any summary ! 
statistics A7hich may be., compiled from this and other siiililar reports and 
published vail be .-grouped accordiri;-; to the usual Census , rules, so that I 
it will be impossible for any one to identify your fi,;ures or separate 
them out of the aggregate. 



Hugh S. John3Qn( Signed) 



Admi ni s t rato r 



THIS IS TO CERTIFY .that, the. informa;tion- contained in this report 
is correct and complete to the best of my knowledge and belief. 

Date 





(Signature of person supplying the 

information) , '' ■ 




(Ofificia.l title) 




I^.UIRY I ^ DESCRIPTION OF LSTABLISiauENT 


1. 


Name of Store, 


2. 


Location: State " ; ' To'-.'n Pooulation 



Ntjne of Parent campa,ny_ 
Kind of store ' ■ 



(General merchandise, grocery, etc.) 
5. Ty^pG of industry i.7hich the company store serves_ 



(coal, steel, etc.) | 

6. Is jtore covered by this report owned: i 

(a) By the parent company? By a subsidiary of the parent! 

coupany? ^By a department of the parent company? _; 

or (b) Privately owned but contract with parent company? . 

7. ^ifhat is the distance from you.r store to your nearest competitor? 



16224-122 (in miles) 



IMQUIRY II -- EMFLOYMENt DATA FOR STORE EIvIPLOYEES 



List the hours worked and waffes received by each store employee for t he 
week SToecified. 



., ,_. Actual Hours Worked Actual Wages Receive 
Name of Employee Sex Week of July 9-14, 1934 Week of July 9-14, 19 



i 

54 



(Continue on seioara.ta ap^ieet^ 



INQUIRY III — hrERCHAI\rDISIK& POLICY 



1. Does store deliver merchandise? If so, is there an extra charseT 



2. What percentage of annual sales is made on installment or lease plan? 



INQUIRY IV — SALES AND LCETHQDS OE -PAYiVxENTS 



1. Annual sales of stores for 1933 Percentage to company employees 



Percentage to others_ 



2. What per cent of total sales during 1933 was made for cash?_ 
Eor scrip? On charge account?_ 



3« State the number of company workers' open charge accounts on the 
following dates: 

March 15, 1933 September 15, 1933 

June 15, 1933 December 15, 1933 

4, Does operating company issue scrip between pay days?_ 



(Yes or No) 
On pay day? 



(Yes or No) 
5. Does company store issue scrip? 



(Yes or No) 
6, If scrip is issued, is it in the form of coupons?_ 



(Yes or No) 

Metal token? 

(Yes or No) 
7. Indicate other forms of credit employed by the store (Explain) 



8, Does the company store redeem scrip for cash?_ 



(Yes or No) 
If so, what discount is charged?. 



4 



9. Does anyone else in the community discount scrip for cash? 

(Yes or No) 
10. What is the maximum number of weeks credit (charge account, scrip, o 
other forms) allowed an employee of the operating company under col- 
lection-over-payroll plan? 



11. What limitations are there on the amount of merchandise operating co|n~ 
pany employees may purchase on account? (Ejrplain)__ 



12» Does the store advance cash to company employees?. 



(Yes or No) 
If so, for what purposes? 



16224-123 



What discount or anaiial rate, .of interest is char,'?;edi?o' such advances? 



13: 



1^.:, 



^ocs the store have recoro.s of earnin-js of the employees '."'ho trade 

v/ith it?__ " _^_. 

(Yes or lib) 
Is anj" record of i)urch.ase supplied to custoraers who have assii?;ned 
their v;a;:e3? If'so, at time or purchase? 



15. 



IUonthly?_ 



(Yes oriTo) 



On pay t-py? _ 

, .^^ ^. ...■^, _ (Yes or No) 

'iTlaat, ;,jer cent of yoVi.r toto.l sales in 1933 did each of the folloi/iag^ 
conprise? ' " •'...!. 

Foodstuffs^ ■ j':. Men's a;-parel_ "Tj Women's a >parel^ 



DrU;'?s and sundries 



16. 



Fua-niture and house furnishin^^s 

Othe r 'jj (specify impoi-tant classes) ______ 

How nany independent .stores in the conmiunity : sell the lollowin-^? 
Pcodstr/ffs lien's apparel ^Women's apparel 






Furnitc.re end house furnishings_ 



Drugs and suno.ries 



lUgrihY T — LOSSES 01? 3AI) AGCOMTS AITJ- ZtiPLOYlih^'T FilSF . 


1. Please supply- 
Year 


-the iniormatior. 
' Losses on 
Bad Accovaits 
in dollars 


reqLiested in 

Ai'iiount of , 

•Total sales 


the follovdhg table: 

Amount Written Off. ps 
Emp.l y e e Eel i e f ' ( the r* 
than had accounts) 


1931 




' 




1932 








1933' 






^ 


1934 (to July ^ 


J 













JlIQJJIIiY VI_ rt:^hI.jPLp]n..n:iITJDAgA O'N-' PL AI'T SLiPLOYLES,. 



The lolldv.'inj questions apply to plant employees of the parent com- 
pany. If jov. do not have tliis inform.ation, kindl;> ohtain it from the _ 
superintendent or employi^ient department. 

1. What- is the present length of tht pay period? . 

1 (in weeks) 

2. How many days elapse between the last ary of the payroll period and 
plant pay day? 



3. State the number of employees (excluLing e:-iecutives) on the. payroll 
of the plant served by this store as of the following dates: 

Ilarch 15, 1933 __„ September 15, 1933 

June 15, 1933 Decei.iber 15, 1933 

4. State amo rait of total annual payroll for the year 1933 



16224-124# 



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 of 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 available for the protection and promotion of 
the public interest an adequate review 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, trade practice studies, statistical studies, 
legal studies, administration studies, miscellaneous studies, and the writing of code his- 
tories. The materials which 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 were held, and 
the activities in connection with 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 
code provisions dealing with wages, hours, trade practices, and other provisions. These 
and other matters are canvassed not only in terms of the materials to be found in the files, 
out 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 (850) histories will be completed. This 
number includes all of the approved codes and some of the unapproved codes. (In W ork 
Materials No 18, Content s of Code Histries , 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 officially 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, grouped according to the char- 
acter of the material. (In Work M aterials No . 17, T entative O utlines and Summaries of 
Studies in P rocess , these materials are fully described). 

I ndustry 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 

Fart 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 From New York State, 
1926 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 

9 768—2 



- Ill - 

Women's Apparel Industry, Some Aspects of the 

T rade Practic e Stu dies 

Commodities, Information Concerning: A Study of 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 ProbJem 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 Coaaission (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 1933-35 

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. Control 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 

A dministrativ e 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 
Labsls 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 Stud ies 

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 cf Establishing Proper Economic Standards, Legal 
Memorandum on Possibility of . .: .:'::n jj:.'. . 

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 be 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. 



THE EVIDENCE STU DIES SERIES 

The Evidence Studies were originally undertaken to gather material for pending court 
cases. After the Schechter decision the project was 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 of 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 dnd 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 
Men's Clothing Industry 
Motion Picture Industry 
Motor Vehicle Retailing Trade 
Needlework Industry of Puerto Rico 
Painting and Paperhanging Industry 
Photo Engraving Industry 
Plumbing Contracting Industry 
Retail Lumber Industry 
Retail Trade Industry 
Retail Tire and Battery Trade Industry 
Rubber Manufacturir.g 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 ooncerned. The following numbers appear in the series: 
9768—5. 



liXiSbJi