employees, including the salaries group. In 1928 that number had been reduced to 1,656,000. That is to say, there had been a reduction of more than 300,000, and yet the ton-miles and the passenger-miles hauled in 1928 were immeasurably greater than in 1920. The same thing was taking place in the manufacturing industries. In 1920 there were 9,048,000 employees; in 1928 that number had been reduced to 8,207,000. That information is from the United States Census of Manufactures and the Interstate Commerce Commission. I shall leave all the data with you, and with it I am giving the authorities quoted.

There is one interesting thing in connection with wage earners: The salaries paid on the railroads in 1922 amounted to $77,952,000 and in 1929 that amount had increased to $96,048,000, which means an increase of almost $20,000,000 for executives of the railroads, while the total amount paid by railroads for wages and salaries had gone steadily downward.

In 1920 the total volume for wages and salaries paid by the railroads was $3,681,000,000 and by 1929, the peak year of transportation in this country, that amount had decreased to $2,896,000,000. So that in 1929 the railroads paid in wages and salaries $785,234,000000 less than in 1920.

Mr. RAMSPECK. That was directly due to decreased employment, because there was no change in the wage scale.

Mr. FREY. In 1923 the output per capita in manufactures had increased to 126.7, in 1924 to 128.4, in 1925 to 138.3, in 1926 to 139.3, in 1927 to 139.3, in 1928 to 149.5, and in 1929 to 153.1.

During this period efforts were made to enable wage earners to discuss this growing problem, because we saw it then. As a representative of my department I took the question up with the President of the United States suggesting a conference between international unions and the heads of the large metal working industries. The President gave it his approval, and the matter was by him referred to Secretary of Labor Lamont, to whose credit I want to say that he made many efforts to bring about such a conference. On several occasions a number of outstanding captains of industry agreed to a date for a conference and on our side we had our members appointed, but always, about a week or so before the date for the meeting, something would happen and we could not have the conference. When we saw this problem ahead of us the captains of industry and of finance refused to sit down and talk over the problem with us. Since that time, in some industries, a certain amount of collective bargaining has taken place, but it has been impossible for us to sit down and discuss these questions with those who own and control the plants. My own experience in that this refusal is due more to the policy of the bankers than to anything else, because a study I have been making indicates that 16 private bankers in New York City, through their partnerships, hold 71 directorates in other banks in New York City.

In addition to that they hold 996 directorates in public utility insurance, railroad, manufacturing, and other corporations. I trace these private partners to the banks on which they sit as member of the board of directors-that is the commercial banks. Then i took eight leading commercial banks in New York City and broke

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 approximately $2,200,000,000 over the previous two years; but the total pay roll in manufacturing industries was only $10,729,968,927. In 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

employees, including the salaries group. In 1928 that number had been reduced to 1,656,000. That is to say, there had been a reduction of more than 300,000, and yet the ton-miles and the passenger-miles hauled in 1928 were immeasurably greater than in 1920. The same thing was taking place in the manufacturing industries. In 1920 there were 9,048,000 employees; in 1928 that number had been reduced to 8,207,000. That information is from the United States Census of Manufactures and the Interstate Commerce Commission. I shall leave all the data with you, and with it I am giving the authorities quoted.

There is one interesting thing in connection with wage earners: The salaries paid on the railroads in 1922 amounted to $77,952,000 and in 1929 that amount had increased to $96,048,000, which means an increase of almost $20,000,000 for executives of the railroads, while the total amount paid by railroads for wages and salaries had gone steadily downward.

In 1920 the total volume for wages and salaries paid by the railroads was $3,681,000,000 and by 1929, the peak year of transportation in this country, that amount had decreased to $2,896,000,000. So that in 1929 the railroads paid in wages and salaries $785,234,000000 less than in 1920.

Mr. RAMSPECK. That was directly due to decreased employment, because there was no change in the wage scale.

Mr. FREY. In 1923 the output per capita in manufactures had increased to 126.7, in 1924 to 128.4, in 1925 to 138.3, in 1926 to 139.3, in 1927 to 139.3, in 1928 to 149.5, and in 1929 to 153.1.

During this period efforts were made to enable wage earners to discuss this growing problem, because we saw it then. As a representative of my department I took the question up with the President of the United States suggesting a conference between international unions and the heads of the large metal working industries. The President gave it his approval, and the matter was by him referred to Secretary of Labor Lamont, to whose credit I want to say that he made many efforts to bring about such a conference. On several occasions a number of outstanding captains of industry agreed to a date for a conference and on our side we had our members appointed, but always, about a week or so before the date for the meeting, something would happen and we could not have the conference. When we saw this problem ahead of us the captains of industry and of finance refused to sit down and talk over the problem with us. Since that time, in some industries, a certain amount of collective bargaining has taken place, but it has been impossible for us to sit down and discuss these questions with those who own and control the plants. My own experience in that this refusal is due more to the policy of the bankers than to anything else, because a study I have been making indicates that 16 private bankers in New York City, through their partnerships, hold 71 directorates in other banks in New York City.

In addition to that they hold 996 directorates in public utilit insurance, railroad, manufacturing, and other corporations. I trace these private partners to the banks on which they sit as member of the board of directors-that is the commercial banks. Then 1 took eight leading commercial banks in New York City and broke

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 approximately $2,200,000,000 over the previous two years; but the total pay roll in manufacturing industries was only $10,729,968,927. In 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

employees, including the salaries group. In 1928 that number had been reduced to 1,656,000. That is to say, there had been a reduction of more than 300,000, and yet the ton-miles and the passenger-miles hauled in 1928 were immeasurably greater than in 1920. The same thing was taking place in the manufacturing industries. In 1920 there were 9,048,000 employees; in 1928 that number had been reduced to 8,207,000. That information is from the United States Census of Manufactures and the Interstate Commerce Commission. I shall leave all the data with you, and with it I am giving the authorities quoted.

There is one interesting thing in connection with wage earners: The salaries paid on the railroads in 1922 amounted to $77,952,000 and in 1929 that amount had increased to $96,048,000, which means an increase of almost $20,000,000 for executives of the railroads, while the total amount paid by railroads for wages and salaries had gone steadily downward.

In 1920 the total volume for wages and salaries paid by the railroads was $3,681,000,000 and by 1929, the peak year of transportation in this country, that amount had decreased to $2,896,000,000. So that in 1929 the railroads paid in wages and salaries $785,234,000000 less than in 1920.

Mr. RAMSPECK. That was directly due to decreased employment, because there was no change in the wage scale.

Mr. FREY. In 1923 the output per capita in manufactures had increased to 126.7, in 1924 to 128.4, in 1925 to 138.3, in 1926 to 139.3, in 1927 to 139.3, in 1928 to 149.5, and in 1929 to 153.1.

During this period efforts were made to enable wage earners to discuss this growing problem, because we saw it then. As a representative of my department I took the question up with the President of the United States suggesting a conference between international unions and the heads of the large metal working industries. The President gave it his approval, and the matter was by him referred to Secretary of Labor Lamont, to whose credit I want to say that he made many efforts to bring about such a conference. On several occasions a number of outstanding captains of industry agreed to a date for a conference and on our side we had our members appointed, but always, about a week or so before the date for the meeting, something would happen and we could not have the conference. When we saw this problem ahead of us the captains of industry and of finance refused to sit down and talk over the problem with us. Since that time, in some industries, a certain amount of collective bargaining has taken place, but it has been impossible for us to sit down and discuss these questions with those who own. and control the plants. My own experience in that this refusal is due more to the policy of the bankers than to anything else, because a study I have been making indicates that 16 private bankers in New York City, through their partnerships, hold 71 directorates in other banks in New York City.

In addition to that they hold 996 directorates in public utility, insurance, railroad, manufacturing, and other corporations. I traced these private partners to the banks on which they sit as members of the board of directors-that is the commercial banks. Then I took eight leading commercial banks in New York City and broke