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Annual report on the statistics of labor for the year ... online

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to the property of different individuals differently situated. The provision of the
Federal Constitution is satisfied if all persons similarly situated are treated alike
in privileges conferred or liabilities imposed.

Field t?. Barber Asphalt Co., 194 U. S. 621.

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VI. 58 STATISTICS OF LABOR — 1914. [l. B.

Classification (by legislation) is not invalid because not depending on scientifie
or mailed differences in things or persons or in their relations. It suffices if it
is practical; and is not reviewable unless palpably arbitrary.

Orient Insurance Co. v. Daggs, 172 U. S. 562.

When legislation applies to particular bodies or associations, imposing upon
them additional liabilities^ it is not open to the objection that it denies to them
the* equal protection of the laws, if all persons brought under its influence are
treated alike under the same conditions.

Missouri Ry. Co. v. Mackey, 127 U. S. 209.

The right to the equal protection of the laws was certainly not denied, for it
is apparent that the same law or course of procedure is applicable to any other
person in the State, under similar circumstances and conditions.

Tinsley v. Anderson, 171 U. S. 106.

This proposed bill selects and classifies the property rights therein
specified, and by roundabout phraseology denies to those rights the benefit
and protection of the writ of injunction in cases of lab^r trouble. Though
the threatened damage be great and irreparable the writ is not to issue
for their protection if this bill becomes law. The bill contemplates a
radical change in our law and a new departure in the public policy of
the Commonwealth, but, as I have stated, the right of property to the
protection of the writ of injunction is a statutory right and is not a right
guaranteed by the Constitution.

The result of my examination of authorities in connection with your
inquiry is that I do not find that this bill is obnoxious to any constitu-
tional provision.

Very truly yours,

THOMAS J. BOYNTON,

Attomey-Generdl.



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NO. 102.] RECOMMENDATIONS OF THE GOVERNOR — 1914. VI. 59



IV.

RECOMMENDATIONS CONCERNING LABOR IN THE IN-
AUGURAL ADDRESS OF GOVERNOR WALSH, 1914,
1. CONSTITUTIONAL CONVENTION.

It has been more than half a century since the people of Massachusetts
have considered their constitution as a whole for the purpose of revising
it and making it consistent with the conditions of the day. The strong
public demand for certain changes in our Constitution compels the Legis-
lature, year after year, to consider the same proposals for its amendment.
The time of committees and of the Legislature itself is consumed, the
length of the session is extended, and the normal business of legislation
is embarrassed by these constantly recurring demands. The failure of
the Legislature to act on them only incites their advocates to more vigor-
ous insistence, and tends to foment distrust of our representative govern-
ment among a large body of intelligent, patriotic citizens.

Therefore, I reconmiend that the Legislature cause to be assembled
with the consent of the electorate a body of citizens, who shall be selected
VTithout party designation, to formulate amendments to our Constitution,
which, submitted to the voters of the State, will tend to settle otherwise
irrepressible controversies, and will make our Constitution conform more
nearly to the needs and to the public opinion of the day.

The following proposals I suggest as the most persistently pressing
for constitutional authority:

6. Rights of cities and tovmB to deal in necessaries of life in times of
public distress.

8. Homestead legislation, whereby the Conmionwealth may help
people of smaU means to acquire homes of their own.

10. The making of workmen's compensation compulsory.

2. WORKMEN'S COMPENSATION ACT.

The Workmen's Compensation Act has now passed the experimental

stage in operation and has demonstrated the wisdom of its enactment.

There is no longer even serious denial that the old employers' liability

system, based upon negligence, was unjust in part and inconsistent with



VI. 60 STATISTICS OF LABOR — 1914. [l. B.

modem industrial conditions, and so unworthy of any humane and intelli-
gent people that the result has been the acknowledgment by the State of
a new responsibility to the victims of industrial injury.

The compensation act was drawn upon conservative lines, limiting
the scope of its benefits in order to impose no undue burden upon em-
ployers which might be prohibitive of industry. Experience and study
here and in other Commonwealths now warrant the reconmiendation of
changes in the law which will increase the measure of its benefits to the
employee, and of the enactment of legislation to provide for regulation
by the State of liability insurance companies to protect the employer
against unjust and excessive rates.

I therefore reconmiend the following amendments to the act:

First. — That compensation paid under the act be increased from half
wages to 65 per cent, of the average weekly wage of the injured employee,
the minimum and maximum payments to remain as at present.

Second. — That payments to dependents in fatal injury cases be ex-
tended to cover a period of five himdred weeks from the date of the injury,
the maximum payment not to exceed $4,000.

Third. — That payments on account of partial incapacity be extended
to cover a period of five hundred weeks from the date of injury.

Fourth. — That in the payment of compensation by a lump sum the
Industrial Accident Board may be given the power to fix the sum to be
paid, so that the matter of agreement as to payment of compensation by
a lump sum shall not be a matter of bargaining between the employee
and the insurer.

Fifth. — That the act may be amended so that it may be given extra-
territorial effect by express legislative intent.

Sixth. — That the Industrial Accident Board be given the power to
require the payment of bills for medical, surgical and hospital attendance
beyond the first two weeks after the injury in cases in which in its judg-
ment such attendance is required.

Seventh. — That compensation and payments be so readjusted that a
youth who loses an arm, or suffers a serious impairment of like nature,
shall receive such compensation as shall enable him to provide for his
future by receiving a training in a self-sustaining occupation.

Eighth. — That the Board shall have the same power to fix rates and
the same supervision over liability insurance companies as the Public
Service Commission now has over the railroads of the State, and that the
Board have the necessary power to obtain all information required by it
from such insurance companies.

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NO. 102,] RECOMMENDATIONS OP THE GOVERNOR — 1914. VI. 61

In connection with the last recommendation it should be called to your
attention that investigations of the Industrial Accident Board have shown
that of each dollar of premium paid under the Workmen's Compensation
Act 45 cents has been paid in losses and 55 cents is retained bj the in-
surance company for their various purposes. This average is the amount
the insurance companies claim they must have to do business, but this
should not be a matter of mere guesswork ; the rates should be reasonable
and consistent with the public interest. The need of adherence to this
principle was emphasized in the results of special study begun in Novem-
ber, 1912, by the Accident Board, which showed that only 12 per cent
of the premiums charged went to pay claims under the act. When, in
January, 1913, the report of the results of this inquiry was to be sub-
mitted to the Governor, the insurance companies, which up to that time
had been protesting that the rates were not high enough, made a horizontal
reduction of 25 per cent., effective after July 1, 1912. The reduction
was a horizontal reduction, and, while in some cases entirely justified,
was in the greater number of cases wholly inadequate. This action in
itself, taken with the fact that reductions since made make the total re-
duction 35 per cent, of the rate originally charged, points to the necessity
of the regulation of the companies by the Board which is administering
the act.

This need for regulation extends also to fire and life insurance. The
first act of the workman in buying his home is to insure his house against
fire, otherwise no workman could own a home. Kecent inquiries have
shown that competition for fire insurance business and waste resulting
therefrom have opened the door in the United States for arson and crime,
and the nation pays the bill. The waste of fire loss in this country is a
burden which bears heavily on industry, and is not tolerated in European
countries. The prudent workman with a family regards it as a necessary
expense to be protected by insurance in case of death. The abuse of life
insurance, and the improper use of capital and surplus in the hands of
life insurance companies, is an old story, and this waste, which might be
removed by regulation, should not be permitted to continue.

3. INVESTIGATION OF LABOR DISPUTES.
Public opinion in nine cases out of ten will determine the issue of
strikes when their causes are understood, and neither the employer nor
the employees will dare to be wrong when they know that public authori-
ties will investigate the facts and make them publicly known. This is a
species of moral compulsion which is wholesome, and cannot be objection-



VI. 62 STATISTICS OF LABOR — 1914. [l. B.

able to workmen who want to be right; nor will it burden the Massachu-
setts employers with restrictions not imposed on competition in other
States, for the competition will always be one of the facts in issue, to be
investigated and reported upon by the investigators.

Thus, while not jeopardizing the equilibrium between our own in-
dustries and those of sister States, we would take a long step towards
industrial peace. Such investigation is not an invasion of private rights,
and is a simple and effective method of securing the peace of the com-
mimity. I am unalterably opposed to compulsory arbitration, but favor
amending our present laws so as to insure compulsory investigation and
reports placing the blame for labor disputes.

I also recommend that the act of last year, giving to members of the
State Board of Conciliation and Arbitration the power to summon wit-
nesses, administer oaths, take testimony and compel the production of
books and papers, be extended to the local boards of conciliation and
arbitration created by chapter 514 of the Acts of 1909.

4. CONSOLIDATION OP COMMISSIONS.

I believe that paid boards should be reduced in number wherever
possible. Division of responsibility is inevitable upon large commissions.
There is no paid board the work of which cannot be performed by three
members. There are some commissions which could well be reduced to
one member without in the least impairing their efficiency. The work
of such paid boards as . . . the Board of Labor and Industries . . . and
the Industrial Accident Board could be perf ormecl with efficiency by three
members, and a substantial saving made in salaries to the taxpayers of
the State.

In nearly every case where five instead of three commissioners have
been provided for there has been a political motive involved. The first
legislation suggested for the Industrial Accident Board, . . . was for
three members, and the increase of two members was not so much to
strengthen or add to the efficiency of the work of these Boards ^ as it was
to provide places for aspirants.

5. RURAL CREDITS AND CO-OPERATION.
Farmers of Massachusetts do not desire to borrow money more cheaply
than at the usual rate of business houses, but they should borrow money
as easily and as cheaply. Present methods are cumbersome and expensive,

> Refers to various boards, certain of which are not cited in paragraphs quoted.

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NO. 102.] RECOMMENDATIONS OF THE GOVERNOR — 1914. VI. 63

and legislation which would relieve the farmers from the present burden
is highly desirable.

There has recently appeared a great interest in farmers' co-operative
societies and schemes for rural credit. I suggest that we should give
these propositions the most careful consideration, and see that only bene-
ficial legislation is enacted.

6. AGRICULTURAL EDUCATION.

Children of our rural population should have equal opportunities for
obtaining the same kind of education that the children have who live
in the larger and more prosperous communities of the Commonwealth.
There is immediate need that rural education in Massachusetts should
be greatly improved. In the country schools the salaries of teachers are
low, and not all of the teachers employed have had proper training. In
many instances achoolhouses and their adjuncts are in deplorable con-
dition, and school committees are at times indifferent. It is desirable
also that agricultural education be developed in the district schools to
meet the ends of rural communities.

Before passing from this subject let me request that the legislation
of this year dealing with the problems of our farmers may mean more
encouragement, more kindly assistance and less unnecessary requirements.



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Part VIL



Wages and Hours of Labor in the Paper
AND Wood Pulp Industry



(I88UBD A8 LaBOB BULLXTIN No. 103.)



ivii. n



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CONTENTS.



PAGES

Introductory, 5

I. Summary of results of inquiry, 8

II. Natiu^ of data and method of presentation, 12

1. Location of the paper mills of Massachusetts, ... 12

2. General organization of the labor force, 12

3. Day, shift, and piece-workers, 15

III. Earnings of employees as shown by the pay-rolls, .... 18

1. Introductory, 18

2. Weekly earnings, 19

A. Classified weekly earnings: By sex, .... 19

B. Employees with weekly earnings of less than speci-

fied amounts: By sex and age groups, ... 23

C. Earnings of employees with reference to time

worked, 25

D. Time, shift, and piece-workers, 36

(o) Time-workers, 36

(h) Shift-workers, 36

(c) Piece-workers, 39

3. Hourly earnings, 39

IV. Hours of labor, 45

1. Introductory, 45

2. Customary daily working hours, 48

3. Customary weekly working hours, 51

4. Actual hours worked in a representative week, ... 56

5. Overtime work, 63

A. Frequency and amount of overtime work, ... 63

B. Overtime work on Sunday, 65

6. Saturday half-holiday, 66

V. Days worked per week, 67

VI. The manufacture of paper, 72

1. Brief history of the industry and general description of

processes, 72

2. Classification and description of occupations, ... 82

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VII, 4 CONTENTS,

VII. Statistics of manufacturep, 93

1. Importance and growth of the paper and wood pulp in-

dustry, . . . .^ 93

2. Persons engaged in the industry, 95

3. Weekly earnings in 1912, 96

4. Annual earnings, 97

5. Days in operation, 97

6. Hours of labor, 98

7. Character of ownership, 98

8. Location of establishments, 99

9. Classification of paper miUs by value of product, ... 99

10. Classification of establishments by number of wage-earners, 100

11. Expenses, 100

12. Engines, power, and fuel, 101

13. Fuel consumed, 101

14. Materials used in manufacture, 102

15. Products of paper mills, 103

16. Equipment, 104

VIII. Detailed Tables, 105

Table A. — Actual Weekly Earnings, 107

Table B. — Actual Hourly Earnings, 121

Table C. — Customaiy Weekly Working Time and Hours

ActuaUy Worked in a Repreeentative Week, . 135

IX. Specimen of schedule used in the inquiry, 157



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Wages and Hours of Labor in the Paper and
Wood Pulp Industry in Massachusetts.



I.

INTRODUCTION AND GENERAL SUMMARY.
INTBODUCTOBY.

This report shows earnings and hours of labor of employees in all of
the paper mills in Massachusetts^ and is the result of an inquiry made by
this Bureau under the law governing its general duties and in pursuance
of a policy adopted several years ago of making an annual study of wages
paid and hours worked by the wage-earners of Massachusetts. The paper
and wood pulp industry was selected for the study because of its impor-
tance, it being one of the five principal industries of this Commonwealth.*

The information on which this report is based was secured, with but
one exception, directly by our Special Agents who visited every paper mill
in Massachusetts and in many cases personally copied the desired data
from the pay-rolls. In a limited nimiber of cases the pay-rolls were copied
by the firm and verified chiefly by inspection of the books. The data
here given represent, therefore, authentic information from original records.

The information as to wages and hours presented in this report rep-
resents the conditions existing in the first part of October, 1912, the data
for time-workers and shift-workers being obtained for the pay-week end-
ing between September 28 and October 5, while for piece-workers the
hours worked and amount of actual earnings were obtained for three of
the four weeks ending September 21, 28, October 5 or 12. In all cases
where three weeks' earnings were secured, the individual earnings have
been divided by three in order to reduce them to a weekly basis for ready
comparison. It is important, however, to understand that the data also

1 The report of thia Bureau on the Statistics of Manufactures for 1912 shows 91 establishments engaged in this
manufacture in Blassachusetts. Three small establishments were not in operation at the time this inquiry was
made (October, 1912) and two were engaged in the manufacture of articles composed of material other than paper.
These latter mills .manufacture a leatherboard composition and the United States Bureau of the Census has
classified theee establishments under the paper and wood pulp industry because of the similarity between this
composition and cardboard. As there is absolutely no paper in the composition this Bureau decided to omit
theee mills from this inquiry.

> The other four leading industries of Massachusetts are: Boots and Shoes, Woolen and Wonted Goods, Cotton
Goods, and Leather — Tanned, Curried, and Finished.

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VII. 6 STATISTICS OF LABOR — 1914. [l. B.

represent to a considerable degree the conditions existing in March, 1914,
for the reason that the statistics were gathered as of October, 1912, or
after the general increase in wages which took place in the industry in
May, 1912, and that as the result of a supplementary inquiry (begun in
January and completed in March, 1914) it was found that only 417 em-
ployees in 15 mills had received changes in weekly rates of wages — 309
receiving increases and 108 receiving decreases — the average net increase
per employee being 57 cents for a full-time week. Between October, 1912,
and February, 1914, 514 employees in 12 mills received changes in weekly
hours of labor, 430 men being granted reductions averaging 10.2 hours a
week, 59 women being granted reductions averaging 3.3 hours a week,
while 25 men had their weekly hours increased, the average amount of in-
crease being 7.1 hours a week. During this same period six mills, employ-
ing 183 shift-workers, changed from the two-shift to the three-shift sys-
tem, increasing the number of their shift-workers from 183 to 259, an
increase of 76, or 41.5 per cent. The aggregate amount of the. pay-rolls
for these six mills for the representative week in October, 1912, was
$11,657.29. Since the rates of wages of the day-workers in these six mills
were not changed between October, 1912, and March, 1914, we may as-
sume for purposes of comparison that the pay-roll for the day-workers was
the same on both dates. Our supplementary inquiry of March, 1914, then
shows that on account of the change from a two-shift to a three-shift
basis the aggregate amount of the pay-rolls (computed on a f%dl4ime basis
for the shift-workers) of these six mills had increased from $11,670 to
$12,599, or 8.0 per cent.

It was found in the tabulation of the data obtained in our supplemen-
tary inquiry that the general changes in wages and hours of labor would
aflFect but very little the general results shown in this report. The average
full-time weekly earnings of those employees who received changes in
weekly rates of wages during the period, October, 1912, to March, 1914,
were $12.23 for males and $6.04 for females in October, 1912, and $12.66
for males and $6.94 for females in March, 1914. The average customary
working time of the 430 men who received changes in hours of labor dur-
ing the same period were 61.1 hours a week for males and 54.7 hours a
week for females in October, 1912, and 52.0 hours for males and 51.4
hours for females in March, 1914.

The information obtained in the original inquiry as to earnings and
hours of labor from the 86 paper and wood pulp mills in operation in
Massachusetts in October, 1912, is presented in this report for 13,871 em-
ployees, of whom 9,331 were males and 4,540 were females. The average
number of persons employed, according to this Bureau's Annual Report

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NO. 103.] WAGES AND HOURS — PAPER INDUSTRY. VII. 7

on the Statistics of Manufactures for 1912, was 14,096, the number vary-
ing from 13,699 in January to 14,344 in December, while the average num-
ber employed in October, 1912 (the month for which the data for this
report on earnings and hours was obtained) was 14,330.^

In a number of cases, especiaUy for piece-workers, it was found im-
possible to utilize all the information for all of the inquiries, because of
the fact that in many establishments no adequate record of the time
worked during the period called for could be furnished. All data which
for this or other causes could not be collected, were excluded from the
tabulation, and in the case of the 1,028 employees whose hours could
not be obtained, we have used the data, wherever possible, in showing
weekly earnings. In this report, therefore, we have presented complete
data for a representative week* relating to weekly earnings, customary •
working hoiu*s, and the customary number of days worked per week, for
13,871 employees, while hourly earnings and actual • weekly hours and days
worked in a representative week are presented for 12,843 employees. The
reader should bear in mind that this presentation does not take account
of the rates of wages, i.e., the amount of money paid to an employee for a
specified period of time, if on time-work, or for a specified quantity of
work, if on piece-work, but shows the achial earnings, that is, the sum
actually received by the employees whether fully employed or not.

The material in regard to hours of labor and weekly earnings in the
mills investigated, as secured from the pay-rolls, has been tabulated in
detail and in summary form in a series of general tables presented at the
end of this report. This material has also been summarized for use in
connection with the following text discussion.

i Data ralattve to aamingw and hours of labor were secured from pay-rolls for 274 employees (malring a total
of 14,146) which were not used in this report. Of these 274 employees, 174 (123 males and 61 females) were ofiKce
clerks, stenofraphers, bookkeepers, superintendents, etc.; 85 (six males and 20 females) were paper-bos makers;
48 (males) were paper ooaters; 13 (males) were Saturday night or Sunday watchmen and were paid for only one
day's work; two (males) were employed in connection with welfare work; and for two (males) the ^ta were
incomplete.

s The term " rep r e s e ntative week" as used in this report means the week covered by this inQuiiy, t.s., the
week for which the data were taken from the pay-rolls of the paper mill by the agents of this Bureau.

s The terms ** customary working time '* and '* customary hours '* as used in this report mean the regular
full-time hours, while the term " actual hours " means the number of hours actually worked in the represent-
ative week for which pay-rolls were obtained in this inquiry.



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VII. 8 STATISTICS OP LABOR — 1914, [l. B.



I. SUMMARY OF RESULTS OF INQUIRY.

During the representative week in October, 1912, i.e., the week for
which the pay-roll data were obtained by this Bureau, over one-sixth (17.1
per cent) of all the paper-mill workers worked over 60 hours a week;
nearly one-fourth (23.5 per cent) of the male employees worked over 60



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