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On account of the great inventions, mass production and efficiency in our country, 75 per cent of the working people under present working conditions can produce more than we can consume or for which we can find a market. What are we going to do with the other 25 per cent—have them live on charity? To that I say no; it is our duty to try to effect laws that will put the other 25 per cent to work.

Assuming that things would start picking up now and the present depression would pass away within a year or two, we could only look to prosperous times for about 10 years, when again we should have a surplus of the necessaries of life, and another depression will strike the country. To prevent this, as I have stated, there is only one permanent solution, namely, to shorten the hours and to properly meet the machine age, and to bring this about I will give any movement my loyal support.

STATEMENT OF JOHN P. FREY, SECRETARY-TREASURER OF THE

METAL TRADES DEPARTMENT, AMERICAN FEDERATION OF LABOR

The CHAIRMAN. The next witness is Mr. John P. Frey, secretarytreasurer of the metal trades department of the American Federation of Labor.

Mr. FREY. Mr. Chairman, representing the metal trades department of the American Federation of Labor, I have no desire to discuss the constitutionality of the bill before you. I take it that the members of this committee are sufficiently familiar with the law and the Constitution to reach a decision for themselves; but, as I listened yesterday to a lengthy argument on the constitutionality of the bill, I thought, as a layman, that while it was impossible for me to understand the law and the Constitution as a trained lawyer would, that it was not imposible for a layman to understand lawyers and that is perhaps fully as important as a knowledge of the law itself.

The gentleman who represented certain interests here yesterday took the position a few years ago that the yellow dog bill that was first introduced in the State of Ohio was unconstitutional, and his assistants took the same position, and they quoted from the three well-known decisions of the United States Supreme Court, Adair v. United States, which was a railroad case, Coppage v. Kansas which was a State case and the Hitchman Coal Co. case. He drew from those three decisions of the United States Supreme Court the lawyers' viewpoint that the yellow dog bill must be unconstitutional and therefore it was ridiculous for any committee to consider a bill that had three decisions against it. The answer to the three cases and the legal argument made at that time is: That not only is the yellow dog bill the law in a number of States, but it is also the law of the United States and is embodied in the injunction bill, which this very committee approved.

However, I know that this committee needs no assistance in considering the constitutionality of the proposed bill. My purpose in coming before the committee is to merely assist, if I can, in verifying knowledge that is already more or less in your possession.

We have had an evolution in methods of production so extremely rapid during the last 20 or 25 years that it amounts to an absolute dislocation of employment and of the division of the wealth produced, in fact that has worked a revolution. One purpose of this bill is to effect a more even division of the available employment. It is to relieve unemployment and we think of unemployment as something that has come to us since 1929. Studies have been made, some of them by myself, and the resultant statistics make it very evident that a permanent army of unemployed was being created, beginning with 1923, for while the volume of production increased very rapidly after 1923 the volume of employment was being steadily reduced. I have carefully examined the statistical reports and other reports of the Bureau of the Census, of the Bureau of Mines, of the Bureau of Labor Statistics of the Department of Labor, and oi the Department of Commerce, and the statistics which I desire to lay before the committee have all been carefully verified by Federal authorities.

Mr. RAMSPECK. That means, of course, that the productivity of ench laborer was increasing during that period, does it not?

Mr. Frey. No. The volume of workers employed in the manu. facturing industries, and that includes mining, and in railroad transportation was decreasing, and approximately 2,000,000 less wage earners were employed in agriculture, manufacturing, and transportation in 1929 than in 1921, although in 1929 the number of ton-miles and passenger miles hauled were enormously greater than in 1921; the value of farm products was much greater, and the output of our manufacturing establishments had enormously iz crtased.

Mr. RAMSPECK. Evidently you did not understand me. It follows that every laborer was producing more over that period.

Mr. FREY. Each laborer was producing more over that period. The per capita output had greatly increased. I have statistics covering that and I will go over them briefly.

Mr. RAMSPECK. Do you concur in the statement made by Mr. Calvin day before yesterday that the production per man has doubled since 1928?

Mr. FREY. No. Mr. Calvin comes into my office frequently and I have there a mass of statistics, and I presume he went over those statistics with me and misunderstood my interpretation of them. There is no definite knowledge of the increased per capita output of labor since the economic depression began. There is a knowledge of the per capita output in some establishments and in some industries, but at best it is only an approximation. Conferences I have had with production engineers, economists, and from the little data I get from the Government-the Government has not collected much such data-would indicate that in some industries the per capita output has increased approximately 25 per cent since 1929. In some instances, of course, it has increased a great deal more than that and in some it has increased less.

While on that subject I will give you statistics for the mining industry. They are taken from the reports of the Bureau of Mines. In 1919 there were 622,000 bituminous miners; in 1929 there were 503,000 bituminous miners. In 1919 there were 155,000 anthracite

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Assuming that things would start picking up now and the them by mys depression would pass away within a year or two, we cout a perman look to prosperous times for about 10 years, when again we with 1923, fc will strike the country. To prevent this, as I have state I have car have a surplus of the necessaries of life, and another delv after 1923 properly meet the machine age, and to bring this about I hau of Labor is only one permanent solution, namely, to shorten the hours of the Bure any movement my loyal support. STATEMENT OF JOHN P. FREY, SECRETARY-TREASUREorities.

METAL TRADES DEPARTMENT, AMERICAN FEDERBICK. That me LABOR

The CHAIRMAN. The next witness is Mr. John P. Freysustries, and ti treasurer of the metal trades department of the American of Labor.

Mr. FREY. Mr. Chairman, representing the metal train 1929 than in ment of the American Federation of Labor, I have no cuss the constitutionality of the bill before you. I takehe value of fari members of this committee are sufficiently familiar with the Constitution to reach a decision for themselves; but, yesterday to a lengthy argument on the constitutionality I thought, as a layman, that while it was impossible understand the law and the Constitution as a trained laach laborer WE that it was not imposible for a layman to understand law output had is perhaps fully as important as a knowledge of the land I will go ove

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SIX-HOUR DAY-FIVE-DAY WEEK

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to effect a more even division of the available employment.

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We have had an evolution in methods of production so extremely cuid during the last 20 or 25 years that it amounts to an absolute

pcation of employment and of the division of the wealth pro-
Ed, in fact that has worked a revolution. One purpose of this

to relieve unemployment and we think of unemployment as
ing that has come to us since 1929. Studies have been made,
If them by myself, and the resultant statistics make it very

that a permanent army of unemployed was being created, ng with 1923, for while the volume of production increased pidly after 1923 the volume of employment was being steadsorts of the Bureau of the Census, of the Bureau of Mines, reau of Labor Statistics of the Department of Labor, and partment of Commerce, and the statistics which I desire

red.

I have carefully examined the statistical reports and

thorities.

Pore the committee have all been carefully verified by

PECK. That means, of course, that the productivity of
was increasing during that period, does it not?
No.

The volume of workers employed in the manu-
was 'decreasing, and approximately 2,000,000 less
in 1929 than in 1921, although in 1929 the number

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Do you concur in the statement made by Mr. 2 Mr. Calvin comes into my office frequently and and misunderstood my interpretation of thera. 5 of statistics, and I presume he went over those knowledge of the increased per capita output of mic depression began. There is a knowledge of in some establishments and in some industries

approximation. Conferences I have had neers, economists, and from the little data I aentthe Government has not collectert mich Ecate that in some industries the per racira proximately 25 per cent since 1929. In me has increased a great deal more than at I will give you statistics for the mining

from the reports of the Bureau of lines, 20 bituminous miners; in 1999 ten waren

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miners; in 1929 there were 152,000 anthracite miners. Let us now consider the per capita production. In 1921 the per capita output of bituminous miners was 4.20 tons.

Mr. RAMSPECK. Per day?

Mr. Frey. Per day; yes. In 1930 the per capita output of bituminous miners was 5.06 tons. In the anthracite coal industry the output per man was 2.09 tons, and in 1930 it was 2.21 tons. These figures show a constantly diminishing number of miners in the socalled prosperous period and a steady increase in the per capita output.

Mr. RAMSPECK. How did that occur, by the use of improved machinery?

Mr. Frey. I am not able to answer that question; but, of course, machinery had something to do with it. The economic fact is that the number of miners is being reduced and the output per day of those employed is being increased.

I should like to give you a general statement as to what is taking place to create this gigantic army of unemployed.

Mr. LOVETTE. Did I understand you to say that the per capita increase amounted to 25 per cent since 1929 ?

Mr. FREY. Yes, sir; the most accurate information I have been able to secure gives an approximation of the increased per capita output as 25 per cent since 1929. That is due to two reasons; first of all, the efforts of production engineers and managers of manufacturing establishments to get the largest output; secondly, those who are employed want to do the most they are capable of doing in order to hold their jobs.

Coming to the manufacturing industries, the output in 1923 sold for $60,555,998,200, and the total wages paid in the manufacturing industries in 1923 amounted to $11,009,297,726. In 1925, two years later, when the Census of Manufactures was taken, again the value of manufacturing products had gone up to $62,713,713,730, or ap; proximately $2,200,000,000 over the previous two years; but the total pay roll in manufacturing industries was only $10,729,968,927. In 1 other words, the total pay roll in these manufacturing industries, which has increased more than two billions, had pay rolls amounting to $279,000,000 less. The Census of Manufactures for 1927 showed a slight increase in the value of manufactured products, that is, the wholesale price, and again the total pay roll was less than in 1923. In 1929 the value of manufactured products had gone up enormously over 1927, because it was $70,434,863,443. In other words, they were approximately $10,000,000,000 more than in 1923, but the total pay roll was only $611,000,000 more than in 1923, making it utterly impossible for the manufacturing wage earners to buy back their proportion of what they were producing; and 93 per cent of what we produce has to be sold in the United States.

During this period it is interesting to note that while wages were falling each year, while the wealth produced was increasing enormously, salaries were going up.

The CHAIRMAN. You do not mean wages?

Mr. FREY. No; I mean salaries. Railroad statistics are very interesting in that respect. There were about 230,000 less railroad employees in 1929 than in 1920. In 1920 there were 2,023,000 railroad

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