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Mr. BARNHART. Seven hundred and sixty-five in the whole country in 1933.

Mr. RICH. In the country stores and the small stores get down around $10,000 or $30,000 or $50,000?

Mr. BARNHART. That is what I am trying to emphasize. The bulk of the distributors in this country, from the point of view of the number of workers, are in the small-store group. But they do not do a proportionate amount of the business. In 1929 the total sales of the retail stores in this country were $49,000,000,000, and the big milliondollar stores got over one-eighth of all the business. In 1933 the million-dollar stores made 10 percent of the sales, while the 980,000 small stores, each selling less than $10,000 a year, made only 14 percent of all the retail sales.

Mr. FITZPATRICK. What percentage did they have of the people working in the stores?

Mr. BARNHART. In 1933 the million-dollar stores reported 13 percent of all the retail-store employees, the very small stores reported the same percentage; but 69 percent of all the retail-store proprietors owned small stores selling less than $10,000 a year. Chart III shows you that. This chart shows the number of people employed in stores of different sizes.

Mr. RICH. Will you take those figures and present them to us? Mr. BARNHART. Table IV will show these figures and the percentages. The stores having a million-dollar business and over, reported a total of 345,000 workers, while the very small stores, selling less than $10,000, reported about a million and a half workers. All the stores selling less than $50,000 a year reported 76 percent of all the retail-store workers in this country.

TABLE IV.--Retail store proprietors and employees in 1933 according to total annual sales of stores

[Data from Census of American Business, Retail Distribution, vol. I. United States Summary, 1933] 1. NEARLY ALL RETAIL STORE PROPRIETORS OWN SMALL STORES

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NOTE.-Vocational education classes for retail store managers will benefit store owners most.

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1 These figures and percentages are cumulative, each including the preceding.

NOTE.-Vocational education classes for retail store salespeople and other employees will benefit eployees in retail stores of all sizes just about equally.

Mr. LINKE. No, not necessarily, Mr. Congressman.

I happen to own a farm, and I know just what the farmer is up against. The idea is that he can produce on less acreage more product per acre. Then he can put some acreage into pasture, forests, and so forth, and be conserving the soil.

Mr. FITZPATRICK. Your experts might show the farmer where he can produce more per acre. But the thing is that you cannot show him where he can find a market for it.

Mr. RICH. Wouldn't you be able to help the farmer a lot if you would prohibit a lot of this importation of farm produce from other nations?

Mr. LINKE. Yes, insofar as they are competing crops or farm produce.

NEED FOR ESTABLISHMENT OF ADDITIONAL DEPARTMENTS OF VOCATIONAL AGRICULTURE

Now, here is something that Dr. Studebaker has already mentioned. We have about 10,000 rural high schools where it might be possible to establish departments of vocational agriculture and where it is really needed.

We have 6,151 rural high schools where departments have already been established under the appropriations given by the Congress. There are 10,000 additional schools which ought to have departments. Of this number 3,000 have already applied for new departments and actually want them. Ohio wrote in just a few days ago and said that the demand for new departments is overwhelming.

I would like to show you another chart on the potential need for extending vocational education in agriculture. This is the question about which you were asking. This chart shows the number of farm boys from 14 to 20 years of age, both in school and out of school in the United States according to the 1930 census.

There was a total of 1,178,000 farm boys in school of which number 203,199 were enrolled in vocational agriculture, which is about 17 percent.

Mr. LEAVY. Is that the figure of 1930, or have you brought it down to date?

Mr. LINKE. We used the 1930 census to indicate the total number of farm boys both in and out of schools, and the number who are taking vocational agriculture was secured from State reports in our files. Mr. LEAVY. Two hundred three thousand one hundred and ninetynine were the boys taking agriculture?

Mr. LINKE. Yes, farm boys.

Mr. LEAVY. That is in 1936?

Mr. LINKE. Yes; 1936.

Mr. LEAVY. But this figure of 1,178,454 is the figure as of 1930? Mr. LINKE. Yes; the total number of farm boys in school according to the 1930 census.

Mr. LEAVY. Then the figure would be substantially larger if you had the present number?

Mr. LINKE. Yes; I think so, because there have been a great many farm boys who have been in the city and who have come back on the farms, you know.

Mr. LEAVY. Then that percentage would be lower now?
Mr. LINKE. It would very likely be lower now.

COMPARISON OF SALARIES PAID IN SMALL STORES WITH THOSE OF LARGE CORPORATIONS

Mr. RICH. They take care of their own people in the little stores better than these large corporations in the big stores.

I want to tell you right here, and I want to say this for the record, that if we don't do something to protect the little fellow in the little store, these big fellows are just going to clean them up.

Mr. FITZPATRICK. I am glad to hear you talking that way.

Mr. RICH. I am opposed to the big fellows in business when they don't do the right thing.

Mr. FITZPATRICK. They have no interest in the community what

ever.

Mr. RICH. Absolutely.

Mr. BARNHART. The program that is proposed by section 2 of the George-Deen Act is mainly a program for helping the workers' especially the managers in the stores with less than $50,000 sales.

Mr. RICH. I wish you could collect information as to what these big fellows are paying their clerks. I am not speaking of the managers, but what they are paying their clerks in the stores as compared to what they are paying the clerks in the little stores. I am sure that you will find that the little fellows take care of their people a whole lot better than the big ones do.

Mr. BARNHART. According to a Federal Trade Commission report on chain stores covering 1 week of January 10, 1931, independent grocery stores reported an average weekly wage of employes of $18.57, whereas chains in the same field reported an average weekly wage of $15.51. In the case of grocery and meat stores the independents paid $21.22 while the chains paid $18.11, and for drugs independents paid $23.88 and chain stores paid $20.91. Independents include depart

ment stores.

We are unable to get specific data, in the manner in which you request it, for stores of $50,000 and less.

The program that we envisoned under this new authorization of section 2 of the George-Deen Act is a program to be primarily for the salespeople in all kinds of stores and the managers in the small stores, those with sales less than $50,000 a year. It is mostly the small-store employees who are going to be reached. The program will help all these small-store distributive workers to do their jobs better and will provide part-time classes in the high schools to prepare more youth for distributive occupations. Some of the classes can be organized on an apprenticeship basis to prepare youth for the time when they open up small stores of their own. That is all I have to say about this subject unless there are some questions.

COOPERATIVE VOCATIONAL REHABILITATION OF PERSONS DISABLED IN INDUSTRY

Mr. RICH. The next item is that dealing with cooperative vocational rehabilitation of persons disabled in industry. You are asking for $1,800,000, which is $91,000 less than the current appropriation. Dr. STUDEBAKER. The justification for that is as follows:

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COOPERATIVE VOCATIONAL REHABILITATION OF PERSONS DISABLED IN

INDUSTRY

The act of June 2, 1920, as amended, provides for the promotion of vocational rehabilitation of persons disabled in industry, or otherwise, and for their return to civil employment, section 531 (a) of the Social Security Act provided additional funds for the fiscal year 1936-37, and authorized an annual appropriation of $1,938,000 thereafter.

The amount appropriated for 1937 was $1,891,000. The estimate for 1938 in the amount of $1,800,000 represents a reduction of $91,000, with the provision that the apportionment to the States shall be computed on the basis of the total amount authorized. This provision is necessary, in view of what is known as the Couzens' amendment, which provides "that such portions of the sums allotted that will not be used in any fiscal year may be allotted in that year proportionately to the States which are prepared through available State funds to use the additional Federal funds." The unexpended balances in any year remain in the State treasuries and the respective amounts are deducted from the allotments for the ensuing year. On the basis of the unexpended balance reported by the States during the fiscal year 1936, it is estimated that $1,800,000 will be sufficient to meet the allotments for 1938.

Dr. STUDEBAKER. We have not discussed vocational rehabilitation. I don't know whether you have any questions that you wish to ask about that program?

The appropriation is the same as it was last year. The program is the same. That is the program of taking those who are crippled and handicapped and helping them to fit themselves for suitable vocations and assisting them in securing satisfactory employment.

Mr. FITZPATRICK. That is a very important part of this vocational training.

Dr. STUDEBAKER. It is. But there is nothing radically changed in the whole program.

SALARIES AND EXPENSES, VOCATIONAL EDUCATION

Mr. RICH. For vocational education, salaries, and expenses, the appropriation was $192,000 last year, and your estimate for this year is $264,060. That is an increase of $72,060; but you have consolidated under salaries and expenses in the further development of vocational education for much of the amount of the last year, $73,000; so that would still be a reduction in your overhead. That would be satisfactory.

PROMOTION OF VOCATIONAL REHABILITATION IN HAWAII

Mr. RICH. We will take up this item for extending to the Territory of Hawaii the benefits of vocational education, $30,000.

Dr. STUDEBAKER. Our justification for that is as follows:

This appropriation provides for cooperation with the Territory of Hawaii in the promotion of vocational rehabilitation of persons disabled in industry or otherwise and their return to civil employment.

estimates.

Although the act authorizing this appropriation was approved on March 10, 1924, the Territory did not accept the provisions of the act until 1936. The program was inaugurated during that year, but the Office of Education was not notified of the acceptance in sufficient time to include an amount in the regular A supplemental estimate which was included in the deficiency appropriation bill provided $833 for a portion of the year but was not available until June 22, 1936. The appropriation was made too late to permit the Territory to plan an expenditure, and the Federal funds were not used. The total amount authorized, $5,000, was appropriated for the current year, and the estimate for 1938 is in the same amount.

Mr. RICH. In Hawaii the amount is $30,000, which is the same as last year.

PROMOTION OF VOCATIONAL REHABILITATION IN PUERTO RICO

Mr. RICH. The item is for vocational education in Puerto Rico. Dr. STUDEBAKER. The justification for that is as follows:

This appropriation is authorized for the promotion of vocational rehabilitation of persons disabled in industry in Puerto Rico. The act was passed March 1931, but Puerto Rico did not inaugurate its program until 1936. The prograin was not sufficiently organized during that year to warrant an appropriation of funds, however.

The sum of $17,000 was annually appropriated by Puerto Rico in its acceptance act for the purpose of matching funds allotted under the Federal act, and for administrative expenses. The rehabilitation program has been established in Puerto Rico and the total amount authorized, $15,000, was appropriated for 1937. We were advised that they expected to spend the entire amount appropri ated, and that they would be prepared to use the total amount authorized during 1938. Our estimate is submitted on the basis of this advice.

SALARIES AND EXPENSES, VOCATIONAL REHABILITATION, OF PERSONS DISABLED IN INDUSTRY

Mr. RICH. The next item is for salaries and expenses, vocational rehabilitation.

Dr. STUDEBAKER. The following justification is submitted:

SALARIES AND EXPENSES, VOCATIONAL REHABILITATION

This appropriation is authorized for the administration of the act approved June 2, 1920, as amended, which provides for the promotion of vocational rehabili tation of persons disabled in industry, or otherwise, and their return to civil employment.

It also provides for the administration of the act approved June 20, 1936, entitled "An act to authorize the operation of stands in Federal buildings by blind persons, to enlarge the economic opportunities of the blind, and for other purposes.' Since these acts are related, the text of the appropriating language for administrative expenses under the act of June 2, 1920, as amended, has been modified to include the authorization for administering the act of June 20, 1936. Estimates of appropriation were submitted for the current year under this act, but were not included in the deficiency appropriation bill because of insufficient time before the passage of that act on June 22, 1935. There has been a great amount of interest manifested in the initiation of this program, and steps were taken to allocate positions and to establish registers of eligibles with the Civil Service Commission in order that appointments might be made as soon as funds were available. In the meantime, a modification of apportionment was submitted to the Bureau of the Budget, reapportioning the funds available under the appropriation for "Salaries and expenses, vocational rehabilitation", in order to provide for the obligation of approximately $5,000, pending the availability of funds for this specific purpose. A supplemental appropriation is being submitted for the

current year.

The estimate of $95,000 for 1938 represents an increase of $20,580 over the appropriation of $74,420 for 1937.

Personal services: increase, $15,380.-The following additional personnel is needed to carry on the work outlined in the two acts:

One employment specialist, grade P-4, $3,800.-The functions of the agent requested will be to secure data on existing labor standards, trade practices, and personnel methods to be applied in the different fields of employment in the several States. It will be his duty, also, to function as a liaison officer between the Government agencies concerned.

One clerk-typist. The telephone operator has been able to assist the office in typing work, which she has done in connection with her duties as operator. This assistance has been, and still is necessary. Even though there no longer will be need for a telephone operator after moving into the new building, it will be necessary to retain the services of this employee in the capacity of clerk-typist, CAF-2, at $1,440. This reclassification increases the budget of the office only $120, as the rmployee is receiving $1,320 at the present time.

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