nu yi oe THE HUMAN FACTOR IN INDUSTRY THE MACMILLAN COMPANY NEW YORK - BOSTON - CHICAGO + DALLAS ATLANTA + SAN FRANCISCO MACMILLAN & CO., Limitep LONDON - BOMBAY « CALCUTTA MELBOURNE THE MACMILLAN CO. OF CANADA, Lp. TORONTO THE HUMAN FACTOR IN INDUSTRY BY LEE K. FRANKEL, Pu.D. THIRD VICE-PRESIDENT AND ALEXANDER FLEISHER, Pu.D. ASSISTANT SECRETARY METROPOLITAN LIFE INSURANCE COMPANY WITH THE COOPERATION oF LAURA S. SEYMOUR PROPENTY OF LITTARY RESCH APD LOS Dee TiOns Con LL UNIVE ASITY New Work THE MACMILLAN COMPANY 1920 All rights reserved MTY OCoprzieut, 1920, By THE MACMILLAN COMPANY. Set up and electrotyped. Published June, r920 Norfsood Jpress J. 8. Cushing Co. — Berwick & Smith Co. Norwood, Mass., U.S.A. TO HALEY FISKE, Ese. PRESIDENT METROPOLITAN LIFE INSURANCE COMPANY WHO GAVE US THE OPPORTUNITY TO USE THE COMPANY'S FACILITIES FOR THE PREPARATION OF MATERIAL AND WITHOUT WHOSE SYMPATHETIC IN- TEREST, THIS BOOK WOULD NOT HAVE BEEN POSSIBLE HDL TI Fo PROPERTY OF LIRPARY G255:2 1RAey Vm Eee Ayr Rey? Yond CTATE SARE IR Sula 2 LACGD ELATIONS PREFACE Tuer constantly increasing interest on the part of em- ployers of labor in their employes has led the authors to prepare this volume, which deals primarily with personnel and service work in industry. It has, of course, been impos- sible in the consideration of these two important subjects to omit reference to other questions which are involved, such as wages, hours of labor, working conditions, etc. How great has been the interest in the human factor in industry, is evidenced by the ever increasing literature on the subject. The War and the industrial problems arising from it added greatly to the literature published by govern- mental agencies and private individuals. In the books, pamphlets, monographs thus far issued, there has been no general discussion of the problems in- volved. Most of the studies made have been along special lines and have dealt only with certain phases of the problem. The average employer, interested essentially in production and the relation of service measures in industry to increased production, has had no single volume or group of volumes to which he might turn for the information he required. To help supply this need has been the thought of the authors. It is our hope that the employer who has developed service activities will find something of use to him. The employer who is considering their introduction in his plant may find the material here made available of value to him in formulating his plans. The general reader who is some- what at sea regarding these newer industrial movements may possibly find an answer to his question. The volume, vil viii PREFACE we hope, may be used as a text book in service and personnel management technique. In the past the treatment given to this phase of industrial work has been by industry rather than by subject. The former has the advantage of giving a complete picture of the particular industry. Arrangement by subject has the ad- vantage of enabling the reader to learn the cumulative ex- perience of many employers and to acquaint himself with the philosophy which underlies such experience. With this in mind, we have endeavored to give, under proper subject headings, an analysis of what has been accomplished in industry, and an interpretation of the purposes and mo- tives which have brought personnel and service work into being. In the last analysis, the value of personnel and service work will be measured by the employer in terms of increased production and by the employe by the opportunities which are accorded to him for personal development both financial and spiritual. Both groups will measure such service by the yard-stick ‘Does it pay?” ‘Is it worth while?” Will production increase in quantity and in quality? Will the worker have opportunity for better living and for better self-expression ? We have not attempted to incorporate a complete bib- liography, but instead have limited ourselves to a citation of the sources of information in regard to any given fact. These studies in themselves form a reasonably good selected bibli- ography of the subject. We are exceedingly grateful to Miss Laura S. Seymour for her enthusiasm and interest. But for her efforts, and especially her ability to organize material, we doubt whether we would have found the time to prepare this work. We want to take this opportunity to thank Miss Emily H. Hun- tington for her assistance in the preparation of the chapters on “Insurance” and “Community Activities,” Miss Con- PREFACE ix stance A. Kiehel for her help on the chapters on ‘‘Recrea- tion,’ and Miss Marguerite A. Goeks, Reference Librarian, for her effective work in collecting, assorting, and preparing material. We trust that we have given credit to the authors whose investigations and writings we have used and to the corporations and individuals who responded so willingly and at much length to our inquiries for specific information. TABLE OF CONTENTS PREFACE ; - 6 5 - ; ‘ CHAPTER I. Inrropuction . - 3 3 : ‘ II. Hrrine anp Howtpine III. Hirina anp Houpine, ContinvEeD IV. Epvucation. 4 ‘ £ 5 é - : V. Worxine Hours ‘ : ‘ ‘ 5 5 VI. Working ConpITIons : ‘i ‘ : VII. Mepicau Care . . ; : : 5 é VIII. Mersop or REMUNERATION . é a : IX. ReErresHMEntT AND RECREATION X. Tue EmMptorer AND THE COMMUNITY XI. Insurance, Savinas, anp Loans XII. Orcganization oF THE DEPARTMENT OF LABOR MINISTRATION . List oF REFERENCES , F . . ° : ° Ap- PaGH vii 20 a7 77 111 135 163 200 226 260 293 326 337 THE HUMAN FACTOR IN INDUSTRY CHAPTER I INTRODUCTION Tur Fonction oF Lasor ADMINISTRATION “‘ For the strength of the pack is the wolf, and the strength of the wolf is the pack.”’ — Kipling. Human Factor Ignored in Quantity Production. — Mod- ern industrial history is the history of the war against waste ; the war for economy of effort in methods of production and complete utilization of raw materials. In the striving for these results the proprietor of the small workshop with his few workers gave way to the corporation housing its indus- trial armies in large factories. With the concentration of workers and capital under one management, the inanimate machinery of manufacturing was perfected and cared for; the human machinery, on the other hand, until recently was practically ignored. Differentiation of processes made the workers’ tasks more simple and mechanical and lessened the need for skill. The worker lost individuality and be- came essentially an adjunct to the machine, easily procur- able, easily replaceable, and apparently requiring little con- sideration or thought. The Workers’ Only Part in Production a “ Fair Day’s Work.” — The growth in the size of the business unit of necessity destroyed the personal relation between employer B 1 2 THE HUMAN FACTOR IN INDUSTRY and employe. This separation contributed to the easy and common belief of the manufacturer that he could overlook the effect of work and working conditions on his employes. The employer was interested in obtaining a working force but not in maintaining it. But the maintenance of the men- tal and physical vitality of the workers, which makes possible vigorous and willing effort, is an essential in modern machin- ized industry. It is in forgetting this that employer, em- ploye and community suffer from the diminished productivity of a devitalized indifferent working force, one that has been taught that its only part in industry is to give a “ fair day’s work.” Past Efforts to Improve Working Conditions. — It would be unfair to state that since the inception of modern indus- try, employers have made no attempts to ameliorate the lot of the worker and to combat the unfavorable conditions in- herent in machine production. Improvements of two kinds have gradually taken place — those forced upon the em- ployer and those voluntarily granted by him. The first comprises those brought about by legislation — such as lim- itation of hours of labor, sanitation of factories, and indus- trial accident compensation, and those brought about by col- lective bargaining — such as reduced hours, improved work- ing conditions and higher wages. The voluntary efforts of employers to improve working conditions have been vari- ously known as industrial betterment, welfare work and serv- ice for employes. As these terms indicate, employers have made voluntary improvements in the past largely in an altruistic spirit and not as a measure of economy. New Attitude toward Labor Administration. — To-day the progressive employer realizes that, apart from other rea- sons, economy alone demands further adjustments between work and workers, and considers service to employes an in- tegral part of production. To this end, departments of labor administration have been organized in many plants in recog- INTRODUCTION 3 nition of the needs of the human factor in industry. They aim to increase output by providing the worker with every physical and mental stimulus to greater efficiency. Labor administration is concerned with those activities carried on by employers and employes jointly or separately which benefit both, have as their unit the industrial plant and are not en- forced by law or by organized labor.* Carrying out the instructions of a legislature or conforming to the demands of a union are the negative approach to the problems in- volved. These instructions and demands merely enforce accepted standards. To secure the best interests of the em- ployer and employes the progressive manager must be in advance of prevailing conditions of employment. He must improve and devise new methods for the economical application of human labor to production. STANDARDS FOR EVALUATING LABOR ADMINISTRATION Experimental Period Past.— Labor administration has passed through its first stage, that of experimentation. The second period, one of interpretation and evaluation, has been reached. The future depends upon the result of this scrutiny. If labor administration can be shown to be of value, and can be correlated to efficient management, it will enter into the third period, that of extension and expansion. Three Points to be Considered. — Community, employer, and employe agree that the fundamental purpose of in- dustry is to produce the greatest possible quantity and the best quality of useful commodities with the least possible cost and effort. Each one measures industrial achievement * In Industrial Management, October, 1917, ‘‘Labor Maintenance Serv- ice” is defined to include ‘‘those factory and community activities con- ducted by employers, employes, or by both jointly, for the direct benefit of the employes and for the indirect improvement of production.” As in- dicated above, this definition does not seem sufficiently restricted. 4 THE HUMAN FACTOR IN INDUSTRY with a different rule. The community wants the lowest legitimate retail commodity price; the employer, higher dividends on the capital investment; and the employe, a larger share of profits in the form of wages. In justifying the expense of labor administration it must be proved not only that it leads to increased production but that the bene- fits derived are distributed among all three groups. The policy holders in a mutual insurance company will favor the installation of rest and recreation rooms for employes of the company and medical equipment for their care, if these do not reduce dividends. They judge from the stand- point of the consumer in considering the price of a com- modity, and their adverse or favorable judgment may affect the sale of policies. In any codperative enterprise and other lines of business to a less obvious degree, the con- sumer’s point of view is important with respect to ap- propriations for labor administration. On the other hand, a corporation must prove to its stockholders in terms of dividends that this service is sound business. Further, an employer may arouse the distrust of his employes if he in- stalls any form of such service without first convincing them of its immediate value to them. There are, therefore, two distinct phases to the evaluation of labor administration — first, does it mean improved quantity or quality of output, and secondly, how do the consumer, the management, and the worker share in the benefits of this improved output? Effect on Productivity.—It is difficult to estimate the value of labor administration in concrete terms. When possible, results in dollars and cents and in increased out- put have been given in the chapters which follow. More often the value of this service can be measured only in- directly by factors such as stability of labor force, ab- senteeism, sickness, or accidents. Moreover, much of this work is of recent origin. The effects will be cumulative and noticeable only several years after its introduction. INTRODUCTION 5 Attitude of the Community.— Labor administration has been too limited in extent to warrant the statement that it has had any appreciable effect upon the community, except in isolated instances. The advanced attitude of the community toward these activities, however, is reflected in a decision of the Court of Appeals of New York, in 1909, giving the Metropolitan Life Insurance Company the legal right to purchase necessary real estate on which to erect a sanatorium : A corporation may not only pay its employe the actual wage agreed upon but may extend to him the same humane and rational treatment which individuals practice in like circumstances. It must do this in order to get competent and effective service. Old- age pensions, medical attendance in illness, etc., are not to be de- fended upon the ground of gratuity or charity, but they enter into the relation of the employer and employe, become, as it were, a part of the inducement for the employe to enter the employment and serve faithfully for the wage agreed upon, and become a part of the terms of employment... . The reasonable care of its employes, according to the enlightened sentiment of the age and the community, is a duty resting upon it, and the proper discharge of the duty is merely transacting the business of the corporation. Value to the Employes. — Because labor in the past had small voice in the division of profits, its attitude toward the development of industry has been negative. Labor’s cry has been for more leisure hours away from the factory and for more money to spend; without these, increased pro- duction seems unimportant. It is inevitable that labor should retard any effort to develop human machinery which is made without its consent and its own tangible reward in view. The individual employe cannot abstract himself from his labor power, he cannot look at it as a commodity, and when an employment manager or a scientific manager assumes the authority of an expert in devising means by which the employe may double or quadruple his labor power, 6 THE HUMAN FACTOR IN INDUSTRY the latter naturally looks for the personal benefit to be de- rived therefrom. The employe will agree that it is good to increase the efficiency of the working force and produc- tion by any means which brings him a share in the benefits of this increase. If labor administration is translated to mean to him merely a deduction from wages for a group sickness insurance scheme, or a periodic medical examina- tion, or the interruption of his piecework by enforced rest periods, he will be doubtful of its value. If there is the slightest suspicion among employes that their efficiency is being increased at the expense of their happiness and that so-called ‘labor administration’ is a substitute for rea- sonable hours, decent wages, and independence, it is doomed to failure. If the value of this service is not apparent to the employe in higher money wages, he must at least be convinced that his own greater efficiency, due to such things as proper health supervision, opportunity for recreation, and lessened worry for the future, has increased his “‘ real wages ” and his capacity for enjoying life. New Names ror OLD Historical Origin of Labor Administration. — Preparatory to a survey of modern methods of labor administration it is interesting to trace their origin in history, prior to the adoption of the term ‘ welfare work.’’ The recent growth of welfare activities has been so rapid and universal that we are prone to consider them a new development in in- dustry. On the contrary, we find that even in medieval industry employers provided for the well-being of their employes in ways which seem strikingly modern. Provisions for the Welfare of Journeymen and Appren- tices in Medieval Industry. — In the medieval guilds ar- rangements were made for the adjustment of grievances. In Coventry in 1520 the Masters of the Cappers were obliged INTRODUCTION 7 “to go once a year to all the shops of their craft and call the apprentices before them, and if the apprentice complained three times against his master for ‘ insufficient finding,’ they had power to take him away and put him with another master.’’! Nor was the sick employe cast off by the trade. In 1355 an ordinance reads that “if any serving man (jour- neyman) of the said trade, who has behaved himself well and loyally towards his master whom he has served shall fall sick or be unable to help and maintain himself, he shall be found by the good folks of the said trade, until he shall have recovered and be able to help and maintain himself.’ 2 At times the master was called upon not only to teach the apprentice his trade but also to afford him further educa- tional advantages. In 1462 in the case of a boy appren- ticed to a haberdasher at fourteen years of age for a term of twelve years, the master undertook to provide him with two years schooling.? Hours of work were fixed by the guild. In 1482 the leather sellers, for instance, set forth that work should be done only between six in the morning and six at night, while on Saturdays, vigils and festival days, work was to cease at three o’clock.* All guild members were entitled to draw from a mutual benefit fund in the case of real need. This guild chest was filled with the fees charged for the enrollment of apprentices and for obtain- ing the freedom of the guild, and from the periodic dues collected from masters and journeymen. Even when the journeymen lost the guild franchise and probably paid smaller dues and fees than the master, apparently the guild chest still provided them and the apprentices with relief.® From this chest the wardens distributed money for burial, for the relief of poverty, sickness, old age and unemploy- ment, and for the support of distressed widows and orphans of the guild. Loans were made to tide members over a period of trade depression and to aid apprentices who were trying to establish themselves in business or find employ- 8 THE HUMAN FACTOR IN INDUSTRY ment.? The Carpenters of London, 1333, stipulated also that sick members should receive friendly visits from the wardens, besides being given fourteen pence a week.® Transition from Small Workshop to Factory. — Though the status of the medieval master and workman was dif- ferent, their work place was the same, their common inter- ests were apparent, and provision for their mutual welfare was the natural result. While the so-called industrial revolution has everywhere carried in its wake a nominal democracy, the loss of contact between employer and employe has contributed to that disparity of interest be- tween them which limits the effectiveness of modern in- dustrial organization. But even in the beginning of machine industry and factory life, individual employers realized the value of improving the conditions of their employes and the methods adopted differed little from modern ‘“‘ welfare work.” Robert Owen, Father of Labor Administration. — The real father of labor administration was Robert Owen. In 1800, he took over the management, or ‘“ government ”’ as he called it, of New Lanark, a cotton mill, built in 1784, and employed some 1800 or 2000 persons including about 500 children, a ‘ collection of the most ignorant and desti- tute from all parts of Scotland, possessing the usual char- acteristics of poverty and ignorance.” ® By 1812 he wrote that the same population ‘‘ had now become conspicuously honest, industrious, sober and orderly, and that an idle individual, one in liquor, or a thief, is scarcely to be seen from the beginning to the end of the year.” Robert Owen’s policy was paternalistic and inquisitorial. No phase of his employe’s mode of life escaped his inspec- tion and regulation. One of his first acts was to enlarge, repair and rebuild the houses in the village. A rule was made by which every tenant was required to clean house once a week and whitewash his home once a year at his own INTRODUCTION 9 expense. He amplified the village water supply, cleansed the streets and then policed them. Other “ welfare” features introduced by this pioneer were voluntary com- pany stores at which better goods could be bought than in the other stores of the village and at a reduction of some 25 per cent in price. The profits from this store supported the “ Institution for the Formation of Character,” a school for children, opened in 1816. The school building was used as a recreation hall for adults in the evening. A small amount of land was reserved for cultivation by the mill operatives. An asylum was built for the sick and aged. A savings bank for employes received deposits of £3000 in 1818. In the factory no child under 10 was employed. In 1816 he reduced working hours from the prevailing 14 hours a day to 12 hours with 13 hours off for meals, leaving a total work day of 102 hours. Other Pioneers.— Robert Owen was not alone in his pioneer work. One of the most ambitious of these early efforts is told about in Homer’s Report of 1845. An English company, employing 854 hands, supported not only a daily school for factory children and the children of their employes, but employed a surgeon at the factory daily between 12 and 1 o’clock, who also made home visits and distributed hospital tickets. There were a library ; a brass band with an instructor (paid by the pupils) ; a voluntary savings bank, receiving sums of from 6d. to 5s. every Saturday, and paying 5 per cent interest ‘‘on undisturbed accumulation of six months” ; a sick relief fund, consisting of the fines exacted from em- ployes; festival meetings and an annual picnic; and a fire brigade with monthly practices.!® Economy of this Service Recognized. — From the very start this work was found to pay. Robert Owen’s unprec- edented form of industrial government resulted in a profit of about £10,000 a year from 1800 to 1830, after paying £7000 in unearned wages when the factory was shut down 10 THE HUMAN FACTOR IN INDUSTRY in 1807, and meeting the expense of benevolences. This was an average of 73 per cent return on the £130,000 capital investment."' Some of this profit would seem to have been illegitimate, since Owen paid a lower average weekly wage than was common in similar establishments. The third of Owen’s essays on ‘“ A New View of Society,” published in 1816, appeals ‘to manufacturers and other employers of labor, in their own interests no less than those of the nation at large” to follow his example. He points out the economy of caring for the plant machinery and wrote that : If due care as to the state of your inanimate machines can pro- duce such beneficial results, what may not be expected if you devote equal attention to your vital machines, who are much more wonder- fully constructed? . . . From experience which cannot deceive me, I venture to assure you that your time and money so applied, if directed by a true knowledge of the subject, would return not five, ten or fifteen per cent for your capital so expended, but often fifty and in many cases one hundred per cent. So one of the earliest experimenters in “ welfare work ” discovered that it paid. Labor Administration on the Continent. — English em- ployers’ efforts to improve the condition of their employes probably did not antedate similar ones on the Continent. In France the Blanzy mining company began building houses for their employes and charging small rents, in 1834.” Messrs. Schneider and Company, proprietors of the Creusot Steel Works, established a provident fund in 1837, and be- tween 1837 and 1899 advanced building loans to over two thousand workmen.* In 1838 the Maison Leclaire, famed for its early profit sharing system, contributed one fourth of its profits to an employes’ mutual aid society. It is interesting to note here too that Edmé-Jean Leclaire attributed his fortune of 1,200,000 francs to the economy of profit sharing. INTRODUCTION 11 On the Continent the various relief funds of the guilds and mutual benefit societies were the earliest to be trans- formed into systematic insurance of employes supported in part by employers. In 1839 the Liége Mutual Insurance Fund was formed by 25 mining companies to provide for accident insurance partly at the employes’ expense. The system extended rapidly through other Belgian mining districts.15 The Essen Steel Works in Germany started a sick and burial fund in 1853, and soon incorporated with it a pension fund. A fund for the relief of sickness at home was endowed in 1879, a hospital for employes in 1872, and a life insurance company in 1877. The welfare institutions of the Krupp firm developed so rapidly that their descrip- tion in 1898 nearly filled a three hundred octavo page book, and in scope they have preceded any similar undertaking.® Early Labor Administration in America. — In the United States the Lowell Textile factories began their paternal care of the factory girls in the early thirties, with board- ing houses, company churches, company stores and corpora- tion schools which children under fourteen years of age had to attend for three months every year.!° Minute tules of conduct were enforced in and out of working hours. In some cases sick funds were made up from weekly de- ductions of a few cents from each operative’s wage. Some firms paid a physician to come once a month to the factory counting-room to vaccinate employes free of charge.!’ Im- provement circles and the operatives’ magazine, the Lowell Offering, first proposed in 1837, originated with the girls themselves, though the other welfare features were se- verely paternalistic. But the glowing colors in which Lucy Larcom, Harriet Robinson and other “ litterateurs”’ of the Lowell factory painted their “alma mater” when writing for the Offer- ing were probably exaggerated. To secure operatives “a long, low black wagon” cruised New England, whose 12 THE HUMAN FACTOR IN INDUSTRY driver was paid “a dollar a head” for each recruit “ and more in proportion to the distance,” so that girls were brought from too far away to enable any easy return home — thus alleged the Cabotville Chronicle in 1846. It further claimed that conditions of work and wages were misrepre- sented to make it appear that Lowell factory girls ‘‘ could dress in silks and spend half their time reading.” It is probable, however, that a resident of Walden, New York, was not drawing entirely on his partisan imagination when he wrote to Niles Register, a protectionist paper, in 1827, that ‘it has become quite fashionable in this part of the country to seek the comfort and well being of the people employed in manufacturing establishments.” 29 He con- cluded his letter: ‘Sir, a well regulated manufacturing establishment in this country is a real boarding school for young women between the ages of twelve and twenty, taken as they are from the poor and less productive class, and from solitary kitchen service; and since the introduction of the power loom they compose a large proportion of the persons employed.” The welfare work at Lowell seems not to have been so much the result of far-sighted economy or of democratic sympathies on the part of the employers, but rather of the necessity for attracting workers. Lowell employers seem to have shown no great anxiety to retain their workers after securing them, and their “‘ welfare work” was in no way comparable to that existent in England or on the continent. Tue New Interest in Lasor ADMINISTRATION Labor Administration a Profession. — It seems probable that the earliest pioneers in welfare work were actuated largely by philanthropic motives. To-day fast accumu- lating data are proving the importance of the scientific study of the human element in industry, and labor administration INTRODUCTION 13 is becoming a recognized branch of production. One of the first signs that the human machine was beginning to receive the systematic attention heretofore given only to the business or mechanics of production was the introduction of the Efficiency Engineer, who was called upon to supple- ment the management with a knowledge of the technique of production in its relation to the workers. It was hoped that he would coérdinate the man power and machine power of the manufacturing plant, between which a wasteful maladjustment had been discovered. Following the Effi- ciency Engineer has come the Employment Manager, who gives his time to the hiring and discharging of employes and methods of paying or promoting them. Both have come into existence since the beginning of the century. College Courses in Labor Administration. — Handling the working force of a plant, caring for the human ma- chinery, is fast becoming a profession. The Amos Tuck School of Administration and Finance at Dartmouth, the University of Rochester, the School of Business Administra- tion of Harvard, the Wharton School of Finance of the University of Pennsylvania, the College of Engineering of Cornell University and Columbia University all offer courses in employment management. The Buffalo Chamber of Commerce proposes a College of Industrial Engineering to study industrial hygiene, apprenticeship, psychology, sociology, and administration. During the war several series of short courses for employment managers were given by the United States Department of Labor. ‘ Industrial Counselors’ now offer professional advice on problems of personnel management. Manufacturers’ Magazines and Associations. — The re- cent development of magazines dealing with the problems of plant personnel witness the rising interest in this subject. Factory, Industrial Management, System, 100%, American In- dustry, and the Dodge Idea, among others have been, 14 THE HUMAN FACTOR IN INDUSTRY with one exception,* established since 1900. They form a medium for the exchange of ideas not only on technical and mechanical subjects, but on all the problems of managing a working force. There are also the new organizations such as the Employment Managers’ Association, the National Safety Council, the National Association of Corporation Schools, and the National Society for the Promotion of In- dustrial Education. The Bureau of Working Conditions of the United States Department of Labor, created dur- ing the last year of the war, indicates the growing emphasis laid on the condition of the working force.t Reasons for the New Interest.— One naturally asks why the value of human labor has been more appreciated in the past decade than in former years of machine industry. No one reason can be given; but undoubtedly the need for more rigid economy in the size of the industrial unit and speeding up of production have long engrossed the attention of industrial managers, but experience has shown that these alone will not successfully meet national and international competition. The Efficiency Movement. — The term “ industrial ef- ficiency ’’ was first applied to the human factor by Dr. Arthur Shadwell, whose study of industrial methods in England, Germany, and America appeared in part in the London Times in 1908. Frederick Winslow Taylor’s book on The Principles of Scientific Management, published in 1911, crystallized the American efficiency movement and defined it to mean not only stop-watch methods of regulating bodily movements, but to include the careful selection of men, their scientific * The progenitor of Industrial Management, Engineering Magazine, was first published in 1891. t The first Employment’ Managers’ Association was founded in 1912, the National Association for Corporation Schools in 1913, the National Safety Council in 1912, the National Society for the Promotion of Industrial Edu- cation in 1907. INTRODUCTION 15 education and development and an intimate friendly co- operation between the management and the men. The efficiency movement, as it developed, emphasized the neces- sity for an ample supply of air, light and rest periods, economy of motion, a cash incentive to effort in the shape of a bonus, and for the adaptation of physique to work. But it failed to provide the more indefinite and basic elements which comprise the highest type of efficiency in a working force, namely, interest and stability. It ignored also the need felt by employes for democratic labor organization. Discovery of the Extent of Labor Turnover. — The study of the worker in industry has drawn attention to the large prevalent labor turnover, and the cost of this insta- bility in a working force. Definitions of labor turnover * and methods of computing it are numerous and varied. The United States Department of Labor defines it as the ‘“ number of separations from service during a given period.’’?! Whatever the precise definition, labor turnover is the re- verse side of the problem of unemployment, and from the standpoint of industry rather than worker it is a measure of unstabilized production and of the maladjustment between the requirements of industry and worker. It is one of the first symptoms, as well as contributory causes of the loss of human values in industry, to attract widespread at- tention. In 1912 a study of twelve metal manufacturing com- panies in the United States, with from less than 300 to more than 10,000 employes, of all grades of skill, revealed the following facts: with a total increase in the working force during the year of 6697 employes, these companies hired * It is interesting to note the possible origin of the term ‘‘Labor Turn- over.” In the medieval guild, the number of apprentices or journeymen any one master might employ was strictly limited by statute, but some- times a master in need of extra help secretly bought over the apprentices of a less busy craftsman. This process was called ‘‘turning over” an ap- prentice.” 16 THE HUMAN FACTOR IN INDUSTRY 42,571, or six and one third times as many as were needed to meet the increase. Of these 72.8 per cent had never before been engaged by any one of the companies. These indus- tries thus lost during the year 35,874 employes, while at the end of the year they were employing only a total of 43,971.” These were the first data procured to show the degree and extent of labor turnover which was found to be peculiar to no one part of the United States and to exist likewise in Austria, England, France, and Germany. Cost of Labor Turnover. — This constant flow from one factory to another does not benefit the greater number that change. It undermines the morals of the working force and lessens general productivity. The cost is borne by employe, employer, and community, and cannot be ac- curately reduced to dollars and cents. Causes of Labor Turnover. — Although as old as indus- try itself, labor turnover has probably increased rapidly in the past few decades. This is not due to a shortage in labor but rather to the increasing subdivision of labor processes, which has made work more monotonous and transition from one occupation to another more easy. Traveling from place to place has become a simple matter of hours instead of days, or days instead of months. News- papers and other advertising channels carry the news of positions or opportunities for advancement in industries in different localities. The less skilled worker, discon- tented with his monotonous task, anxious for more wages, more leisure time, or change at all costs, assumes almost a nomadic existence. Employers promote this migratory condition by compet- ing instead of coéperating in their efforts to secure workers. They go far afield in advertising and scouting for labor and then seldom make it worth while for the worker to remain in their employ by carefully selecting, placing, and train- ing him to fit the job and rewarding his resulting efficiency. INTRODUCTION 17 Then, too, unsatisfactory working conditions and the em- ployer’s habit of laying off workers in accordance with market fluctuations combine to increase restlessness among the working force. To increase efficiency in production — to check this constant flux of incoming and outgoing employes, to at- tract, stabilize, and enlist the codperation of their working force, employers are compelled to recognize and to treat the individual working unit as a human being and not as a cog in a machine. So the discovery of the cost of labor turnover is one of the prime causes of employers’ renewed interest in their employes. Effect of Organized Labor and Legislation. — But other forces besides motives of economy have contributed to the move to humanize industry. Where the contact between master and workman has ceased to exist, the working class has drawn together, conscious of its needs and demanding a more equitable distribution of the profits of industry. Many of the voluntary improvements made by employers in working conditions are in tacit recognition of the power of organized labor, and an attempt to allay discontent and to forestall agitation and union activity. But more important than any forced shortening of hours or increased pay is the revolutionary attitude toward the labor factor in industry which the unions have brought about. Public opinion, crystallized into legislation, has forced employers to improve working conditions. This is evident, for instance, in the effect which the Railroad Liability Act (1911) had on the reduction of railroad employes’ accidents. This act made such accidents extremely costly to the railroad companies and whereas in 1910, 2.17 railroad employes out of every thou- sand men employed were killed while on duty, in 1916 this number was only 1.17, a decrease of 47 per cent.” Influence of the New Type of Man in Industry. — One other factor which has accelerated the voluntary changing Cc 18 THE HUMAN FACTOR IN INDUSTRY of the conditions of work by employers is the advent of a new type of industrial manager within the past quarter of a century. Twenty-five years ago the professions monopo- lized the college graduate. To-day a college training is a prerequisite for any executive position in many large com- panies. Large scale industry now absorbs the best energies of brain as well as of hand so that industrial sciences and pro- fessions compete with others in the type of man they are attracting. This means a broadened and more scientific point of view brought to bear on all the problems of indus- trial organization. Scope of Problems of Labor Administration. — The need for economy, the demands of organized labor, the enactment of labor legislation, and the education of em- ployers have within recent years combined to give a new significance to the problems of labor administration which have to do with, — obtaining and holding the employes, — technical training, education, and promotion, — methods of remuneration, and of providing savings and loan facilities with insurance against accident, sickness, old age, and death, —the length of the working hours, — the work environ- ment, — medical supervision, — opportunities for recrea- tion and self-development on the factory premises, — and housing and living conditions. Now an International Experiment. — To-day American manufacturers have surpassed other employers in their efforts to attract and hold their employes. In 1918 the South Manchuria Railway Company, employing 37,000 Japanese and Chinese, sent the head of its welfare depart- ment to the United States to study American employers’ welfare service. But labor administration is peculiar to no country; it is an international experiment. The Com- mercial Press of Shanghai, China, provides for the recreation, education, pensioning, housing, and medical care of its 14,000 employes.?® The Manchuria Railway Company’s INTRODUCTION 19 Welfare Department requires twelve officers to carry out its work. Profit sharing in various forms exists in France, Great Britain, Germany, the United States, Switzerland, Austria, Hungary, Belgium, Holland, Italy, Scandinavia, Russia, Spain, and Portugal.” Welfare institutions on a gigantic scale were developed by the Krupp Works in Ger- many. But England, with its Bournville, York, and Port Sunlight, and the United States with the manifold activities of many corporations, are close competitors. As industry grows and manufacturing processes are im- proved, systematic labor administration will become more general in so far as it is found to be productive. No matter what the future may hold, whether it may bring great, perhaps fundamental changes in the control of capital and the management of industry, these experiments in method will prove to be of value. Irrespective of ownership or the division of product among the factors of production, the problems of making more and better goods will go on. As long as it does, the question of making each worker and each hour of work as effective as possible will exist. To sum- marize the results of the various methods of labor adminis- tration to date, to suggest lines of future development, may prove helpful to those on whom rest or will rest the manage- ment of production. CHAPTER II HIRING AND HOLDING Current Disregard of Employment Methods. — Before the war, when a textile manufacturer in Massachusetts was perhaps buying his wool in Leicestershire, his dyes in Germany and his machinery in Pennsylvania, he was prob- ably waiting to ‘buy ” the first chance applicant at the factory door to fill the vacancy in his working force. More- over, he had small regard for placing the applicant where both the worker and the industry would profit most from his labor; nor did he make real effort to retain his services, once secured, beyond offering him the regular, impersonal wage payment of the purchasing price of his class of labor. Such is the average employer’s careless attitude toward his ‘ human machinery.” Prevalence of Industrial Misfit. — Current labor turn- over figures, both before and during the war, have revealed in part the absurdity of the assumption that any particular industry, without conscious effort, attracts and holds in its employ those workers best fitted for it. The physical, mental, and temperamental fitness of each employe for the work which he is to do contributes to the development of a contented, effective working force, with a tendency toward stability. Such a condition of mutual satisfaction is obviously not prevalent in industry to-day, and it is one of the basic difficulties, that of obtaining and retaining the worker best fitted for the work to be done, which consti- tutes the employment problem. 20 HIRING AND HOLDING 21 Sources of Labor Supply.— There are four phases in employment, namely: securing, selecting, inducting, and retaining efficient workers. Choice predicates quantity from which to choose and few employers can rely solely on the “ peddlers” of labor who come to their doors to provide them with the necessary quantity and quality of applicants for employment. A systematic effort to secure applicants is usually essential. But there are sources of supply within as well as without the plant. A position may be filled by transferring or promoting a present employe as well as by hiring a new one, and with greater assurance of success, in that such a selection is based on a knowledge of the worker’s capacity. Opening avenues for promotion and transfer creates an invaluable source of labor supply. Job Analysis Selection.— After an adequate choice has been made possible and after analyses have been made of the individual equipment which makes for success in the work to be done, it remains equally important to develop reliable methods for discovering the applicant whose prob- ability of success is highest. Various methods have been suggested and a few have proven their value. Interviews, examinations, — mental and physical,—investigations of references, studies of personality and previous experience, all play a part in the process of selection. Induction. — When the applicant has been chosen the next step is to secure his active codperation and to fit him into the business organization of which he is to be a part. His duties must be explained, his superior’s interest in him developed, and he must be trained to become an integral part of the industry. This necessitates ‘following up” the new employe to see that he fits his job and that the job fits him. If he has been placed in the wrong niche and his discontinuance is contemplated, at his own or his superior’s suggestion, it may still be possible to find another place in the organization which will better fit both his and the 22 THE HUMAN FACTOR IN INDUSTRY industry’s needs. Conference and explanation may re- move difficulties and grievances, and as a result a successful workman be developed from an apparent failure. Development. — Retaining efficient workers involves the necessity of promoting an employe as fast as his ability war- rants. The recognition of ability helps to produce a satis- fied plant personnel and an indispensable esprit de corps. Establishing a careful policy of promotion makes of the employe’s personal ambition “a centripetal instead of a centrifugal force ”’ in the industry. Tur EMPLOYMENT MAcHINERY Foreman as Employment Manager.— From the ver- satile master of the small workshop — buyer, workman, and seller — has descended the modern foreman of the large scale industry. But with the growing intricacy of super- vising machine production the foreman has been gradually relieved of most functions of general management and his attention confined to the actual process of production. Al- though the organization of industry has been divided and subdivided and specialists have assumed many of the varied functions of the early master workman, still the complex and special function of finding and placing workers rests on the foreman’s shoulders. Complex Duties. — Consider the duties of the foreman in some shops as outlined by Mr. Fisher: They set speeds and depths of cut, decide on the best angles and shapes of tools, the best cooling agents, the kind of steel to use, set piece rates, route the work in the department, keep data on idle equipment time, act as stock chasers, adjust differ- ences as to wages, break in new men, and discipline and discharge insubordinate and incompetent men. Un- questionably the foreman must be relieved of the duty of hiring and firing men if the human factor in industry is to receive due attention. HIRING AND HOLDING 23 Lack of Judgment.— Moreover, though technically skilled, the usual foreman has risen from the ranks and is not apt to have the power of judging men as well as ma- chinery. Besides being too busy, he is too close to the work to get a proper perspective of its requirements. The selection of workers in his hands is apt to become a matter of personal, prejudiced likes and dislikes. Job Selling. — Not only is this true but, where the fore- man hires, the danger of “job selling’ is always present, and if carried on it is certain to produce a mediocre, dis- contented working force. This is especially difficult to avoid where non-English-speaking groups are dealt with, if the employment function is not centralized. In Ohio in 1916, the Industrial Commission found “ job selling ” carried on in at least six large industrial plants in the State, employing approximately 40,000 men. The price of a job varied from $5 to $30, and the money was sometimes pocketed by the foreman alone, sometimes divided between the fore- man and one or two sub-foremen.2 This practice is fre- quently accompanied by bribing for promotion and oc- casionally by dummy names on the pay roll, whose pay envelopes reach the foreman’s pocket. Absence of Codperation.— But even with foremen of the best intentions, the selection of employes is inevitably a hit and miss process. Then, too, there is an unavoidable lack of codperation between department heads in the matter of transferring men when they have been wrongly placed or must be laid off. A large steel corporation is reported to have advertised recently for seven hundred common laborers and to have laid off one thousand in another de- partment on the same day. Employment is essentially a plant and not a departmental problem. Centralized Employment Department. — The brief state- ment of the problems involved in securing and holding an 24 THE HUMAN FACTOR IN INDUSTRY efficient working force reveals the futility of leaving its execution to the detached foreman. They include: (1) Mobilizing the sources of labor supply within and without the plant; (2) Analyzing and classifying the requirements of the jobs of the entire plant ; (3) Selecting and placing applicants for work according to their physical, mental, and temperamental fitness for the specific job; (4) Inducting and “following up” the new employe until adjustment is complete ; (5) Retaining and developing the old employe. The appreciation of the value of such a broad program indicates perhaps most clearly the need of a centralized employment bureau with officers of special ability and pro- fessional training. Its Recent Growth. — But the centralized employment bureau, which relieves the foreman of responsibility and makes methods of hiring and firing uniform throughout the plant, israre. In 1915 a canvass of twelve business houses lying along twenty squares of a street in the Philadelphia textile district, showed that eight left hiring and firing ab- solutely to the foremen, three gave a superintendent slight supervisory powers, if the foreman was inefficient, while in one, the head of the firm did the hiring? Even in the larger industries which have now decided that employment requires the special direction of an employment department, its development is of recent growth. An investigation cover- ing thirty-seven large New England firms showed that few have had such a department for more than five or six years; one department was sixteen years old, two were nine years old, and as yet twelve had none.* Though of recent origin, this specialization of the function of employment is extending rapidly and more and more progressive firms are adopting it. HIRING AND HOLDING 25 Objections to It.— It may be argued that a small in- dustry cannot afford an employment department and that even in the larger industry, while it may be needed in times of labor scarcity, it is not warranted in a time of business depression or in slack seasons. As Mr. Feiss says, however : “‘ While a very small organization may not be able to afford even one person whose sole function is the business of employ- ment, this activity should nevertheless be recognized as a separate and most important function, and in such cases administered by the manager or assistant manager himself.” It should be borne in mind, too, in answer to the second ob- jection, that in a time of slack work all unavoidable laying- off should be done with the needs — present and future — of the entire plant in mind, rather than of the separate de- partment. The employment bureau should pool the labor reserve of the plant and thus greatly reduce the costly turn- over. A period of slack work, moreover, admits of extended transfer and training of employes in different processes, thereby laying the foundation for a more efficient and in- telligently codperative working force. Economy of Centralized Bureau in Reducing Turnover. — The economy of installing employment departments is already apparent. The Dennison Manufacturing Com- pany found that during the first two years of their employ- ment department, a reduced turnover * had netted them a saving of $25,000, charging $50 to the cost of replacing each experienced hand. The Curtis Publishing Company esti- mated that, in one year after the introduction of a cen- tralized employment bureau, there had been a saving of $90 per person “landed on the books,” because the applicant accepted was almost sure to “make good.”” In 1914, the Ford Motor Company introduced the centralized em- ployment bureau. The policy of the bureau is to transfer a man as many as six or eight times until a place is found * For definition of labor turnover, see page 15. 26 THE HUMAN FACTOR IN INDUSTRY where he can do the work and earn his $5 a day. This policy reduced the discharges from 8390 in 1913 to 27 in 1915.8 The Hayes Manufacturing Company of Detroit cut their turnover in two in the first year of the operation of an em- ployment bureau, and in the next four months the turnover was more than cut in two again. More significant even is the fact that this reduction was accompanied by a 30 per cent increase in output per man.? The Solvay Com- pany of Detroit in 1916 had an employment bureau in one of its two plants, the Semet-Solvay (Coke) Company, but not in the Solvay Process Company which adjoined it. The latter company was having labor difficulties, and to remedy them, the employment manager of the Semet- Solvay Company took over the hiring and firing in both plants, beginning May, 1916. In May the combined average turnover was 10 per cent; in June the turnover dropped to 8.3 per cent; in July it was 8 per cent; in August, 4.1 per cent; in September, 3.3 per cent; in October, 3 per cent; in November, 2.6 per cent; in December, 2.4 per cent; and during these same months the average labor turnover in Detroit ‘‘ was jumping up by leaps and bounds.” ® Such results give complete evidence of the value of cen- tralized employment management. In Relieving Foremen or Officers of the Firm.—The em- ployment department brings with it an additional economy in relieving the foreman of the responsibility of hiring, and firing and allowing him to devote his efforts to securing the maximum output. An even greater saving is effected by introducing a centralized employment department where the interviewing of applicants has taken the time of mem- bers or officers of a firm or organization. The comptroller of one institution where an employment department was established said that he was thereby saved one day a week, which, since he received a salary of $10,000 a year, was equivalent to a $1600 saving in the time of one man alone.!° HIRING AND HOLDING 27 Centralized Bureau Not as Yet General. — These esti- mates are suggestive, but a measurement in dollars and cents of the value of an employment department is as yet scarcely practicable. No two firms estimate their turnover costs alike, and employment records and statistics are not stand- ardized. The work is in an experimental stage. The oldest Employment Managers’ Association was founded in Boston in 1912, and marks the beginning of employment management as a recognized profession. Since then, like associations have been formed in ten of the largest cities in the country and enroll nearly 1000 firms." These as- sociations have as yet done little more than make sug- gestions for future development, few members having any past achievements to relate. Introduction of Employment Bureau. — In spite of the generally accepted theoretical value of an employment de- partment and its indicated practical value, certain diffi- culties may arise in its introduction. The foreman, or other person in charge, refuses to believe that he is not the best judge of the man for his own work and resents the loss of prestige which goes with the power of hiring and firing. But the codperation and interest of the foremen are es- sential to success. Without their codperation it is impos- sible to draw up job specifications and make adequate pro- vision for transferring men who have not “made good ”’ in one department to another, and for promoting men, instead of bringing men from outside for the higher posi- tions. To gain the foremen’s support it has been found best in some plants to ask their opinion about the introduction of an employment department rather than to ¢ell them about it after it has been installed. The Fore River Ship- building Corporation solved the problem by appointing a committee of foremen, mechanics, and office men who planned the bureau, after studying the plans proposed and 28 THE HUMAN FACTOR IN INDUSTRY adopted by other firms.” One large firm held a conference of six hundred foremen to consult with an expert on the various problems of employment and management of the plant personnel. Such conferences might well precede the inauguration of an employment bureau. Whatever difficulties arise can be easily overcome with tact, and the result will certainly warrant the effort and the immediate cost. SECURING APPLICANTS In the absence of a thoroughly organized ‘market, the employment manager must make a survey of the sources of supply and evaluate the possible methods of obtaining applicants. At present, vacancies may be filled from among those (1) applying for work at the plant or by mail; (2) recommended by present employers or by a third person ; (3) reached by advertising in newspapers, circulars, etc., or by scouting ; (4) graduating or leaving schools ; (5) registered by employment agencies ; (6) recommended for promotion and transfer within the plant. Personal Applications. — (1) Investigation indicates that most firms rely principally on the newspaper column and the ‘ peddler”’ of labor for securing their employes. In 1911, the New York Commission on Employment found that out of seven hundred and fifty employers, four hundred and fifty-eight, or over 60 per cent, “could always get all the help they wanted and practically all of them hired their forces from people who made personal application at their plants”; two hundred, or 27 per cent, advertised for help; fifty used employment agencies, and ten depended on trade HIRING AND HOLDING 29 unions.“ In an investigation made by the National As- sociation of Corporation Schools, nineteen out of forty-one corporations rarely had to look beyond their doors for appli- cants for work. The old ‘“‘ want shingle,” with the ‘‘ peddling ” of labor, has long been under fire from the standpoint of the “ job- less man.” It is also an evil from the standpoint of the “manless job.” The man who is out of work and offer- ing his services indiscriminately is apt to be doing so be- cause he is not the most efficient applicant obtainable. The wasteful system of “ peddling ” his labor helps to keep him so. The individual firm can best help to correct this evil by protecting itself from having to take the man who happens to be at the gate when a vacancy occurs. Application Blanks. — The need for additional workers should be forestalled as far as possible by the use of appli- cation blanks, filed and classified for future reference Not only should all applicants coming to the plant fill out appli- cation blanks to go on file, but such blanks should be filled out by those reached through other channels as well. Those who send letters of application should be asked to come to the plant to fill out the regular blank, or when this is impossible, blanks can be sent to them. The development of such a file will make it possible to (a) keep a selected list of good material for future ref- erence ; (b) attract a superior class of men who are not out of work but are looking for better opportunities and can wait for an opening ; (c) postpone the engagement in order to dispel the first impression made by the applicant ; (d) eliminate floaters. The Life of an Application Blank. — The length of time for which an application blank should be kept varies with the condition of the labor market. In a period of depres- 30 THE HUMAN FACTOR IN INDUSTRY sion and unemployment its term of usefulness will be longer than in a period of industrial activity when competition for labor is keen and the workers nove about restlessly in response to the enticements held out by employers. It will vary also with the class of labor involved, the unskilled manual laborer being a bird of passage, gone in a few days or weeks, while at the other extreme is the highly skilled, or technically equipped, or executive person, who is more stable and may be available for several years after the first application is made. Above all, this variable quantity is affected by the character of the firm, which, if it offers un- usually attractive wages, hours, and opportunities, may draw from its filed application blanks correspondingly longer than other firms. In the case of the Ford Motor Company, where at one time the crowd clamoring for work got so large that they “had to turn the hose on them to keep the crowd from breaking in one side of the building,”’ and where they now receive between 2000 and 3000 appli- cations by mail every day, the application blank becomes an absolute necessity.16 It is a means of separating the wheat from the chaff and provides an almost permanently useful file. The life of the application blank of both small and large employers will be determined by these same factors. A helpful device is the division of the blanks into a “live” and a “dead ”’ file, the ‘“‘live’’ being kept up to date by weeding out all applications made too far in the past to be dependable. The “dead ”’ file offers a last resort if the “ live” file fails.1” Recommendations: From Employes.— (2) In ques- tioning some thirty firms as to the value of the different methods of getting applicants for work, Mr. Kelly found a general agreement about those recommended by employes. Twelve firms thought them the most important source of all and five classed them as very important. The Cheney Company encourages its employes to bring in friends by. HIRING AND HOLDING 31 offering a cash bonus to the employe if his friend proves satisfactory.18 Joseph and Feiss Company, in Cleveland, and the Dennison Manufacturing Company use this source extensively. It works well in a foreign labor group and especially if an effort is being made to secure a new racial group. It is at all times a stabilizing force in the personnel of the plant and if careful selective methods are used in the first place the employe’s friends and relatives are apt to be of a correspondingly good type. The Curtis Publishing Company, on the contrary, will employ no one who has a relative in the company in any capacity,!® probably to avoid the danger of favoritism and of antagonizing employes whose relatives cannot be accepted. But if the employe is asked to fill out a blank stating why his friend or relative is desirable and giving information about his work and employment, the employe’s feeling of responsi- bility for the friend’s or relative’s success greatly reduces the danger of his suggesting unsuitable material. Such blanks are sometimes distributed periodically among em- ployes. Moreover, it should be fully understood that the qualifications of each applicant are subject to the impartial scrutiny of the employment manager. From a Third Person. — Employing persons recommended by a third person other than an employe or a regular agency is coming into disfavor. The judgment on which such a recommendation is based is seldom disinterested and usually made without adequate knowledge of the firm’s needs. An employer will rarely wish to rely on such out- side judgment of his needs. Moreover, partiality toward this class of applicant, because the recommendation is endorsed by an officer or firm member, will often lead to dis- satisfaction among employes. An exception to the general rule is in cases where a number of employment managers in the same city agree to exchange the names of desirable applicants whose services they cannot immediately use. 32 THE HUMAN FACTOR IN INDUSTRY In all cases, however, the recommendation should be sub- ject to the review of the employment manager, and his de- cision as to the suitability of the applicant should be final. Advertising. — (3) The newspaper “‘ want ad,” although subject to much criticism, holds its place as one of the most common methods of securing applicants. For obtaining young or semi-skilled workers, it is perhaps unequaled. Its greatest weakness is that it is undiscriminating and con- sequently entails considerable expense in the weeding out of “undesirable” applicants. The total amount expended in the ‘“ want ad” columns is very large. In New York State it is estimated that 2000 newspapers carry yearly some 800,000 columns of “help wanted” advertisements at a cost to employers and employes of $20,000,000, or $5 per person employed in the State.2° Another serious diffi- culty is that when advertising, competing employers are tempted to offer illusory attractions, which result in a futile interchange of employes without ensuing benefit to em- ployers or workers. Except in special instances, it is best that an advertise- ment give in detail the different positions to be filled, with their respective duties, hours, etc. The more exact the statement, the fewer will be the applicants who appear and the more nearly will those applying meet the requirements of the positions to be filled. Special and genuine induce- ments, such as welfare activities, are listed by some com- panies to advantage. “Blind ” or ‘ Open.’’ — There is much disagreement as to the relative merits of the “ blind” and ‘ open” adver- tisement. Those in favor of the former claim that it auto- matically eliminates much hopeless material. A Curtis Publishing Company employment manager thinks the “only redeeming feature” of the ‘open’ advertisement is the rapidity with which the temporary worker may be secured.2 But the “blind” advertisement defeats its HIRING AND HOLDING 33 own ends because it does not attract the best type of worker, the one who is employed. He wants to know to whom he is applying for work, in order that he may judge, in some measure at least, the truthfulness of the advertisement and the possibility of improving his condition. If it is used as a means of detecting an employe’s disloyalty or dissatisfaction before notice is given, it may secure the in- formation desired, but will in all probability create further dissatisfaction among the employes who learn it. The “blind” advertisement may be. necessary when a person holding a responsible position is to be replaced. On the whole, however, it would seem that all the advantages of the “blind” advertisement and none of its disadvantages can be secured by stating in an “open ad” that only ap- plications in writing will be considered. vad Misleading Advertisements. — Exaggerated or mislead- ing advertising is poor policy. If a large number of appli- cants are called for and respond and only a small number are really needed, it is probable that those who do not se- cure positions will feel that they have not been fairly con- sidered and will not apply on another occasion. A mu- nition plant in New York State with a maximum capacity for about two hundred and fifty workers, advertised for a long period in 1917 for one thousand women with $7 a week guaranteed. It was not explained in the advertisement that the $7 was paid for only two weeks, after which the worker was put on a piecework basis which brought in only $5 a week. The loss to the company in wasted advertis- ing and excessive turnover might well have been saved by living up to the guarantee at least. Another New York State firm advertised in the same year in near-by cities that the transportation of new employes was paid in advance without stating that the firm proceeded to deduct that expense from the worker’s wages and refunded it only if he remained longer than three months. In some states ad- D 34 THE HUMAN FACTOR IN INDUSTRY vertising of this kind is illegal; in all it is unwise. It preju- dices the employe and makes it difficult for honest employers to secure proper results from legitimate advertising. Al- though few cases of fraudulent advertising are reported by the victims, in one year the Commissioner of Licenses in New York investigated two hundred and ten complaints.” Open, honest, detailed advertising, though costly, is a successful way to secure workers. Dishonest advertising secures the worker only to lose him again. “ Positions Wanted.’’— The extent to which the “posi- tions wanted ” columns can be utilized will depend in large measure on the grade of employe sought and the condition of the labor market. Only the higher grades of workers advertise and few of these will have to resort to advertise- ments in a time of industrial activity. Newspapers and magazines that have special “blue lists”? of investigated advertisements become practically employment agencies and are certainly to be consulted. In order to secure special workers newspaper columns are of great assistance. Even experts may be obtained through the “ positions wanted” columns of some newspapers. Scouting. — A successful scouting and advertising scheme was recently adopted by the Fore River Shipbuilding Com- pany. A folder was distributed in many industrial centers, giving working hours, wages, overtime pay, bonuses, a com- plete list of the trades opened, and attached was a time table of trains to the yards.” Largely by means of this folder, the force was quickly doubled from 5000 to 10,000. One remarkable instance of scouting occurred in the fall of 1917, when a munitions corporation in Pennsylvania sent scouts with large handbills with a picture of gold spilling out of a bag on one side of the sheet to the factory districts in Philadelphia at closing hour. These handbills were dis- tributed and a special train was provided and filled every evening with the workers rushing for gold. In five days HIRING AND HOLDING 35 3500 men were thus “kidnapped.” Not infrequently em- ployment agents scout cities where unemployment has been caused by disasters. In a New York manufacturing town, one firm has a social worker who canvasses the employes’ homes to list all chil- dren, their respective ages, school grades, and desirability as future employes. Through this list, kept up to date, the children are followed until they leave school and are then offered employment in the plant. Some employers resort to a house to house, block by block, canvass in certain neigh- borhoods. But most scouting is effective only as an ex- treme, emergency method, since it prohibits the careful selection necessary to build up a stable force. Schools. — (4) Employers are beginning to reach back to the ultimate sources of supply and to explore the general schools, trade schools, and colleges for apprentices in clerical, technical, and executive work. The Dennison Manufactur- irig Company each summer provides places for a number of high-school girls, whether there is need for them or not. Strawbridge and Clothier Company, of Philadelphia, do the same. The Curtis Company Employment Depart- ment keeps in touch with principals of all schools in Phila- delphia, informing them of their requirements. Other large firms send representatives each year to colleges and edu- cational institutions to describe the occupational opportu- nities in their plant. The General Electric Company of Schenectady covers in this way some seventy-three American and eight foreign colleges.” Firms desiring young, trainable workers should strive to secure graduating students or others leaving school. Dur- ing the first years after the completion of education, irre- spective of the age at which this takes place, the boy or girl is apt to drift from one job to another in the vague search of an untrained person for congenial work. To overcome this and to allow for more specific preparatory 36 THE HUMAN FACTOR IN INDUSTRY training, school authorities and state legislatures have evolved a number of part-time systems by which children who have reached a given age may divide their time between school and work. Failure to appreciate the value of train- ing a potential employe before he leaves school, coupled with the difficulty of arranging for part-time work, has pre- vented employers from availing themselves as fully as may be of this source of supply. This is evident from the ex- perience of the Curtis Publishing Company. The Penn- sylvania Child Labor Law requires minors under sixteen to attend school eight hours a week. In consequence, a Curtis employment manager writes : ‘‘ Should a request be received for two sixteen-year-old boys, eight of the most desirable applicants would not be too many to send for, as the chances are that 50 per cent will be satisfactorily employed.\ If the request, on the other hand, came for two boys under sixteen, on account of the present lack of demand due to the law, three boys would be enough to summon.” # Employment Agencies. — (5) Employment agencies are of three kinds: (a) Private agencies conducted for profit ; (b) Special agencies, conducted usually at cost ; (c) Public agencies, supported and managed by the gov- ernment. Private. — The most costly to employer and employe alike is the first group — the private employment agency. In New York City, nearly one thousand private employment agencies collect $2,000,000 in fees yearly, and yet over 85 per cent of the employers never use them.'7 The expense to the applicant for work at the private agency of being sent on false trails and of the frequent misrepresentation of con- ditions, as well as of the extortionate fees, is well known. The private agency’s lack of discrimination and interest in recommending employes makes it also costly to em- ployers. A recent study of labor conditions in a large plant HIRING AND HOLDING 37 showed that it had been seriously exploited by the private employment agencies in a number of Eastern cities. Work- men had been shipped to the company’s plant regardless of fitness for the work; the company was charged for railroad fare, board for retaining the worker, and fees, while the worker often did not arrive at all, and if he did, often could not be used. The consequent loss to the company was estimated at $1000 a month.* The private employment agency is seldom of real value and frequently earns its name of “‘ employment shark.” Special.— There are many groups of special agencies conducted by employers, employes, and by interested citi- zens. The employers’ trade employment offices are seldom of great value, as in most instances they are distrusted by the workmen. This distrust is sometimes merited, asin the case of the so-called ‘‘ Welfare Bureau ”’ of the Lake Car- riers’ Association, recently investigated by the United States Department of Labor, which aims primarily at strike- breaking and blacklisting.2° Such agencies are in a posi- tion to furnish selected employes, but employes seldom selected on the basis of efficiency or ability. In addition to the trade agency are the efforts of Chambers of Com- merce to organize employment agencies among their mem- bers. These may prove of value, provided they do not earn the same distrust as other employers’ agencies. On the other hand, many trade unions conduct labor exchanges, but unless the trade is completely unionized, an employer will ordinarily hesitate to resort to the union agency. In either case there are a fear and hostility which make agencies of this sort almost valueless. Still another agency con- ducted at cost is the philanthropic agency, which at pres- ent is of little assistance except in the search for very special or unskilled labor. Public. — The third group is the public employment exchange, managed for the mutual benefit of employe and 38 THE HUMAN FACTOR IN INDUSTRY employer and supported by taxation. Its development in this country has been exceedingly slow. England and Germany each have about five times as many public em- ployment agencies in operation as the United States. The first public employment bureau in the United States was opened in the State of Ohio in 1890. There are now seventy or eighty such bureaus throughout this country, but until recently these have acted as clearing houses for unskilled manual labor only. They are inadequate in number, with- out proper supervision, organization, and information. The managers are underpaid, and are often political place holders. Uniform records are not used, and the bureaus do not codperate. Only twenty of all these bureaus report “fitness” as a basis of placement.26 Within the last few years there has been rapid progress, however, notably in Ohio, Wisconsin, Illinois, and Massachusetts. The Cleve- land bureau has centralized all the agencies in the city, private, philanthropic, and public, and is beginning to place the college graduate and the specially trained man and woman, as well as the manual laborer.2”? Jt maintains a neutral attitude in all labor disturbances, investigates both employer and employe, and aims at vocational guidance and fitness in placing. Federal. — Through gaining the confidence of employe and employer such bureaus will eventually do much to solve the problems both of unemployment and of labor shortage. The greatest hope of the future lies perhaps in the new branch of the Department of Labor, the United States Federal Employment Service, which aims ultimately to place each worker in the country in that job in which he will add most to the total volume of production with the least cost to himself, to the industry and to society. It seeks to bring the entire labor supply in contact with all de- mands for labor supply. It will help to eliminate the “ peddling ” of labor, which drains the vitality of the labor “HIRING AND HOLDING 39 reserve, the costly “ want ads” and that parasitic middle- man, the private employment agency. Summary of Outside Sources.—JIn considering the sources of labor supply outside the plant, the employment manager of a firm will probably decide to urge the present employes to bring their friends to the employment office. Incidentally, the extent to which such a scheme is adopted by the employes will indicate whether or not conditions in the plant are satisfactory. Advertising and scouting will be necessary from time to time, but the need for such an expenditure as they entail can be reduced to a minimum by a careful filing system, listing applicants who have sought employment at one time or another, or have been reached through previous advertising and scouting expeditions, or through inquiries made at the schools. In the matter of the public employment bureaus, the employment manager cannot do better than to persist in presenting his needs to the nearest bureaus until it arises to the opportunity offered and secures the material desired. Inside Sources. — (6) The more constructive work of the employment department will, however, have to do with the mobilizing of the labor supply within the plant. All those who are temporarily employed, all “ failures,” all physically misplaced, and all whose highest powers are not called upon in the position occupied, form a potential turn- over quantity. If the employment department aids in the process of adjustment by transferring the temporarily employed and the failures, and by promoting those who are capable of more difficult work, it utilizes this potential turn- over as a source of supply. But this source cannot be fully effective until after the various jobs of the plant have been classified and analyzed as to their different requirements in technique, native ability, and physique. Lines of pro- motion must also be indicated and a system for gauging the fitness and capacity of the individual developed. Present 40 THE HUMAN FACTOR IN INDUSTRY employes should also be encouraged to express their de- sires and ambitions. Tue Jos SPECIFICATION Plant Chart. — The selection of workers according to their fitness for work is as dependent on an intimate knowl- edge of the positions to be filled as on an adequate supply of applicants, or perfected methods of determining their fit- ness. It is not merely general ability which the employ- ment department must look for, but suitability for the specific position. Preparatory to discovering this, the in- dividual qualities and equipment called for in the position must be defined. A job specification or analysis should be prepared for every position, so that it need not be necessary to analyze specific requirements during the emergency created by an open machine or desk. A valuable pre- liminary is a complete organization chart giving every posi- tion in the plant in its relation to every other position. Then the position within the jurisdiction of the employment manager should be classified, an appropriate title found, the duties involved briefly defined, and the schedule of pay given. The Commonwealth Edison Company has a classified list of about four hundred different positions; for example: Addressograph Operator To include all positions, the duties of which involve the operation of an addressograph, and the performance of clerical work involved. Rate A — (pay) (6 mos.) Rate D — (pay) (1 year) RateB— ” (6 mos.) RateE— ” (1 year) RateC— ” (1 year) Rate F— ” Maximum Advertising Correspondent, Electric Shop To include the position the duties of which involve the preparation, under the direction of the Manager, Electric Shop, and General Publicity Agent, of catalogues, follow-up letters, and other adver- tising matter for the purpose of increasing the sales and mail-order business of the Electric Shop. Minimum — (pay) Maximum — (pay) HIRING AND HOLDING 41 Analyzing the Job. — With this guide to what is required of each position, the employment manager proceeds to learn under what conditions it is done, and what is essential in physique, mentality, temperament, education, and train- ing, for doing it well. The drawing up of these job speci- fications should be supervised by the employment manager, but not done by him alone. Often specifications are written jointly by the employment manager and the foreman. Meyer Bloomfield, in analyzing the jobs of Bamberger and Company’s department store in Newark, gave every employe a list of questions to answer about his duties and problems.’ The purpose of the study, to insure fair deal- ing and just compensation, was explained in advance, and hundreds of answers were received. The executives were then asked, to describe every job in their respective de- partments. Finally an outside investigator made his analysis. From these three descriptions, from three points of view, Mr. Bloomfield wrote the composite job specifica- tion. Specification Blank. — In a small organization it is fre- quently possible for the person charged with employing to know the detail of each type of position. But even here a careful analysis of the requirements of each position will be useful. In a large industry such knowledge is manifestly impossible and the job specification becomes not only a convenience but a necessity. The accompanying specifica- tion blank is used by the General Railway Signal Com- pany. This blank is filled in wherever a vacancy occurs and the writing of it takes slightly over five minutes.?8 This is a combined requisition blank and job specification for un- skilled workers. Similar ones can readily be prepared for other positions. Usually it will be found advisable to have the foreman fill in only a simple requisition blank, naming the job or jobs to be filled, and to have the employ- ment manager refer, in selecting the applicant, to the speci- 42 THE HUMAN FACTOR IN INDUSTRY GENERAL RAILWAY SIGNAL COMPANY STANDARD JOB SPECIFICATIONS Copy for.......... betes Department............Class..........Job Name............. Deseriptionof Jobiss av sano bd etal an Patna eth a ree eR Oe CEST Nature oF WorK AND WorKING CONDITIONS Floor. ..:.......Quick.....Dirty..... Heavy ..... Standing....Bench..........Slow...... Greasy.... Medium... .Sitting...... Bench Mach..... Rough....Wet...... Light ...... Walking. ...Floor Mach. .... Close..... Clean..... Continuously repeated operation... ..or Variety of jobs......... Make of Machine . acon ii Wate Length of time required ta learn folic. Rate—D.W. or P.W...Starting Rate. . See. Earnings on P.W.. How soon put on piecework.. Requirements — Schooling desired . Necessary to read and write English .. Read Bineprute.. Tools required: ics evn wis steatsie sae dv asia shes WAG Re dea ind ee esse Preferred Age..... Height....Weight.. _. Nationality. ie by le Previous Training or Experience desired...................0.. RUBMAR KG S55 f F.siSh shan ss acd chad eda dG op Sahat aye Soe Teese Dept. Foreman..................Empl. Dept... .............. SUP tse vores seeeese wei aun DATO ad caso tes wr odoinn signee Form 890 fications that have been previously prepared. The United States Shipping Board Emergency Fleet Corporation has listed and analyzed one hundred and thirty-seven different _ shipyard occupations. An example of these is the follow- ing one of the hammersmith’s occupation : 29 HIRING AND HOLDING 43 Other names by which occupation is known: Heavy Forger. Occupations most nearly allied: Blacksmith, Drop Forger. Trade requirements : The Hammersmith supervises the operation of all kinds of work done with power drop hammers and forge presses; heats and hammers into shape from drawings, templates or samples, all heavy shapes or forgings, such as crankshafts, axles, frames, connecting rods and any sort of large forgings. He works on heavy ingots, but occasionally may be required to work on lighter ingots; he should be able to do bending, drawing, up- setting, welding, and forming, using coal, coke, gas, or oil fires, and be familiar with the various steels. He should be able to direct work of heaters, backhanders, strikers, and helpers. Education : Common school. Physical requirements : Should have good eyesight, strength and endurance; ability to stand heat. Mental requirements : Higher than average intelligence. Experience : The Hammersmith should be an expert blacksmith and thoroughly experienced in general power hammer work; must be familiar with the operation of all classes of furnaces, and should have had similar experience in a repair shop or indus- trial plant. Entrance requirements for training school : Must be a practical blacksmith; common school or trade school education; be familiar with mechanical drawings and blue- prints; strength and endurance; ability to stand intense heat. Rate established : Definition need not be confined to the lower grades of work but may be usefully applied to responsible positions. An important and technical position in the Welfare Division 44 THE HUMAN FACTOR IN INDUSTRY of the Metropolitan Life Insurance Company, for instance, is briefly described as follows : SUPERVISOR — NURSING SERVICE Qualification Registered Nurse Executive Experience with Visiting Nurse Association or other large group of Nurses Marked Executive Ability Good Correspondent Experience in public speaking, writing and statistical work desired. Descriptive Paragraph.— Mr. Burke, of the Detroit Steel Products Company, prefers the descriptive paragraph for both skilled and unskilled worker and adds to a descrip- tion of duties and specific requirements, a “‘ personality ” paragraph.?® A storekeeper foreman, for instance, “ must be able to direct and get the work out of a gang of common, ordinary laborers. To some extent he must have the gruff personality to command the respect, get the enthusiasm and confidence of men of this class and type. He should be patient and even-tempered enough to be constantly ‘bothered’ for material and readjustments,” etc. For a press hand “an over-responsive, over-keyed, nervous or- ganization would be dangerous on account of accidents, and would also make the work disagreeable. ... It is very essential that the intelligence be not over-active or ima- ginative,” etc. These characterizations add considerably to the value of the specification, but undoubtedly all other requirements as to physique, training, and education should be given where possible in a form similar to that of the Gen- eral Railway Signal Company, and not scattered through several paragraphs. There is a difference of opinion as to the extent to which the prejudices of the foreman should appear on the specifica- tion and the effort made to choose applicants accordingly. Mr. Burke suggests that the specification, which is submitted to the foreman for approval, should expressly state that poli- HIRING AND HOLDING 45 ties, religion, nationality, etc., need not be considered in choosing applicants.°° Advantages of Job Specification. — An additional ad- vantage accruing from the preparation of careful specifica- tions is that a just standardization of wages and salaries is made possible. The use of the plant chart and job analyses also oils the wheels of the human machinery by clearly defining the interrelation of all its parts. It opens avenues for promotions and transfer, and, above all, enables the employment manager to know what to look for in the new employe. That these advantages are real is proved by the rapidity with which such job specifications are being adopted. The Republican Metal Ware Company, the German-American Button Company, the General Railway Signal Company, and the Curtis Publishing Company are a few of the firms now using them. Mr. Winslow in the Richmond Survey (1911) made out such specifications for various trades, including the printing and tobacco trades. They are being made out by nearly every member of the Employment Managers’ Association of Detroit.1| Future of the Job Specification. — A questionnaire sent out by the Pennsylvania Department of Labor and In- dustry, in January, 1918, marks the beginning of a new epoch in the short history of the specification. So far the emphasis has been on what the employe should be. In preparing for the return of disabled soldiers this ques- tionnaire seeks to find out from Pennsylvania employers what that employe need not be. It asks what diseased or crippled men are now employed and in what capacity; also, how many men could be employed in each plant who had lost one hand, both hands, one leg, both legs, one eye, both eyes, etc. This questionnaire contains a valuable hint for employers. Dr. Farnum, of Avery Company, says, ‘‘ Some of us have statistics covering several years showing that under this 46 THE HUMAN FACTOR IN INDUSTRY system (that of placing those with physical defects), the worse the physical defect, the less the accident incidence. Moreover, these same statistics show that labor turnover varies inversely with the physical defects of the laborer.” #1 A further interesting change which may appear in job specifications in the near future is the extension of the de- sirable age limit of the new employe. In 1917 the Em- ployers’ Association of Chicago placed about 9500 men over 45 years of age with such success that at the end of that year 916 employers in and near the city were regularly hiring these older men.*? They have been placed by this as- sociation in every conceivable kind of skilled and unskilled, clerical and semi-executive work, and the testimony of their achievement is overwhelmingly in their favor. No longer will they be relegated to the night watchman’s post. One firm rates their efficiency as 10 per cent greater than that of younger men in the same work. Hart, Schaffner and Marx Company began experimenting thus with older men in the fall of 1916 and affirm the following advantages to accrue from their employment: (1) They have a steadying influence on the factory morale [because many of them have had the employers’ point of view] ; (2) They decrease the labor turnover [because the older man “ tends ” to stick] ; (8) They give greater application to and have greater in- terest in their work [because, having fewer distractions than younger men, although their potential energy is less it is all used in their work.]! Making most of the labor supply at hand by having the job specifications include what the worker need not be, may prove cheaper in the long run than the elaborate ad- vertising and scouting schemes to which some employers have resorted to secure their employes. CHAPTER, III HIRING AND HOLDING, Continued SELECTING THE WORKER The actual process of selecting a man for a position implies a double problem: first, determining as accurately as pos- sible the man who will fit the position, and second, making the position sufficiently attractive to the man to make him wish to secure it and to hold it after it has been secured. In one respect, the employment manager acts as a buyer of service and the prospective applicant is the seller; in another, the positions are reversed and the applicant is the buyer of a given position and the employment manager the seller. While the technique of the employer as buyer has been carefully developed, his position as seller is generally ignored, to the detriment of industry. A workman is valu- able in proportion to the degree of spontaneity of effort which he puts into his. work. This spontaneity may be fostered by just treatment as regards wages and working conditions, or it may be killed by the indifference of the employer who regards his employe as a mere cog in the machine, to be treated with only such consideration as is absolutely necessary in order to obtain his services. There are four considerations which determine the de- sirability of the job to the applicant and his continued willingness to work well : (1) Remuneration ; (2) Opportunity for promotion ; (3) Working conditions ; (4) Social advantages. 47 48 THE HUMAN FACTOR IN INDUSTRY Elements Determining Selection.—If the applicant is to make a satisfactory and satisfied employe these points must be carefully considered, the advantages and disad- vantages frankly and honestly discussed, and the importance to the firm and the dignity of the specific work made clear. The high-grade employment manager appreciates the im- portance of his position as seller, and gives to the applicant an impression of the attitude of his concern which does not soon wear off. On the other hand, careful discrimination is necessary in selecting the worker. The main factors to be considered are: (1) Training: education and experience ; (2) Native mental ability ; (8) Physical condition ; (4) Personality. Changes in Methods of Selection. — Increasingly is the effort being made by progressive employers to secure a scientific estimate of the individual worker’s capacities through the application of medicine and psychology. The changes which employment departments have made in the methods of selecting employes is indicated by the fol- lowing table prepared by Mr. Kelly, comparing the means used to determine the applicant’s fitness by twelve firms without separate employment departments and eighteen firms with such departments.’ Whereas at one time the “ trial on work ” was the only test of an applicant’s fitness, this table marks its decreas- ing popularity wherever separate employment depart- ments have been organized. Of the eighteen firms with such departments only three depend largely on “ trying out,” while nine of the other twelve firms still cling to this old-fashioned method of selection. The employment de- partments substitute for this trial work and the spoiled work and wasted time that accompany it, the application HIRING AND HOLDING 49 Witsovr SEPARATE Wits SEPpARATD EmPioyMent DEpaRt- EmpioyMent Depart- MENTS MENTS (12 firms — 8,225 (18 firms— 47,625 employes) employes) Percentage of Percentage of Number Firms Number ‘irms Investigated Investigated Application blanks 3 25.0 14 77.7 Personal interview with other than foreman 7 58.3 17 94.5 References followed up in majority of cases 1 8.3 12 66.6 Physical tests . 0 0.0 3 16.6 Trial on work largely de- pended upon 9 75.0 3 16.6 Mental tests 0 0.0 7 38.8 blank, interviews with employment officials, physical and occasionally mental tests, and the careful following-up of references. Preliminary Interview. — The first step in the selection of employes is the preliminary interview in which the em- ployment manager discovers whether the applicant satisfies certain minimum requirements. Some insurance com- panies, for instance, have decided that salesmen are more successful if married and within certain age limits. Ap- plicants who are not married and not of a suitable age can be immediately rejected. When the firm has many more applicants for work than it can use, this interview will serve to discourage a large number and will encourage only those who promise best to fill the requirements of the par- ticular job. At this interview, too, the wage or salary scales, the required preliminary training, the hours, and the physical and mental examinations required should be briefly explained to the applicant. If the preliminary application is made by mail and an interview not readily obtainable, the application blank should be inclosed in a PROPERTY OF LISTARY §=GOSj BOM YESK STATS SONNE INSEE HIAL Aud LABGA RELATIONS 50 THE HUMAN FACTOR IN INDUSTRY letter outlining the points that would have been explained in the interview. The Application Blank. — What the application blank should ask is a mooted question. There is general agree- ment among experts that there can be no standard appli- cation blank for all industries or all departments in the same industry. There will be a radical difference in the blanks used for a mill-hand or a stenographer, a teamster or a salesman. At the present time the application blank reflects the absence of the job specification and a careful analysis of the work requirements. There is remarkably little differentiation. In a wide variety of industries, eleven out of twenty-five concerns recently investigated cover the following subjects in their application blanks: (1) Fullname and address ; (2) Age; (8) Date of application ; (4) Married or single; (5) Names and addresses of former employers ; (6) Length of time in each position ; (7) Nature and extent of education ; (8) Nationality ; (9) Position applied for; (10) Reasons for leaving former positions ; (11) Number of persons dependent on applicant; (12) Wages in each of former positions ; (13) Height and weight ; (14) References other than former employers; (15) Employed by this company before ; (16) Number of children. None of the questions asked relates to the specific require- ments of the plant jobs. Standardized application blanks cannot supply the need of different industries. Careful con- sideration must be given to each position, if the application form is to have real value. =~ HIRING AND HOLDING 51 A Common Omission.— The interval elapsing between leaving school and going to work is noted by the Bournville Works in England.* A girl, for instance, who leaves school at sixteen years of age, marries and does not return to work for several years, may in the interval have so lost the habits of discipline, obedience, and concentration that she cannot even be trained for any but the least skilled work. This suggests the need of information rarely asked for on the application blank, namely: the total time during which the applicant has been unemployed during the preceding years. Useless Questions. — The purpose of the application blank is to secure facts and not opinions. Occasionally an applicant is asked whether he is honest or dishonest, energetic or lazy, courteous or discourteous. The ability to analyze self is as rare as honesty, and such questions are valueless. The religion of the applicant and whether or not he is a church member is rarely important, except in a position in which success may depend in part upon social connections, as in the case of salesmen. Provided the applicant speaks English, nationality is of small impor- tance. In general, health questions are unavailing because the applicant will be on guard against discrimination on a health basis. In blanks filled out without a preliminary interview a question about physical defects may be neces- sary, however. Value of the Application Blank. — One great advantage of the application blank is its permanency. It can be filed for future use so that the facts established at one time are available at a later date. This applies particularly to those . persons for whom no immediate position is available. To make it as effective as possible, careful consideration must be given to methods of filing. These at present vary widely in different concerns. Joseph and Feiss Company file by Sex, Age, and Apparent Suitability. The Curtis Publish- 52 THE HUMAN FACTOR IN INDUSTRY ing Company have a detailed file for every class of labor employed, from the compositor and the pressman to the fly boy and the truck driver, with one class for undesirables. Where only skilled labor can be employed, such a detailed system of filing is practical, but for positions which do not re- quire previous training or skill, such a classification need- lessly restricts the labor supply available for each position. With Joseph and Feiss Company, for instance, previous experience is not emphasized because 90 per cent of their employes are trained in from two to ten jobs after being employed.’ Where the industry has many processes pecul- iar to itself, as in the case of the Dennison Manufactur- ing Company, which engages only 10 per cent skilled workers, the great need is for untrained but trainable workers. Usually, however, each blank can be filed with some group of similar jobs in accordance with the appli- cant’s (a) previous experience or training, or (b) apparent suitability and expressed preference. The application should be preserved with later records of service to be referred to when transferring, discharging, or promoting an employe or reémploying a former employe. Time Needed for Selection. — But the application blank, together with the waiting period for examination that it implies, has in it the strength—and possibly the weak- ness — that more time is required in hiring than under the former hit and miss methods. The entire selective scheme collapses if the employes do not give advance notice when leaving and the foreman when discharging or needing an in- creased force. Time is needed for any adequate selective process. Requisition blanks should be provided each department. If the foreman realizes that his departmental turnover, for which he is responsible, is dependent on this careful selection, he will do his part in filing his requisition blanks early. The employe is the more difficult one to con- vince of the advantage of giving notice. The four ways in HIRING AND HOLDING 53 which the short notice habit of the employes may be checked, however, are by (1) Giving the selected applicant time and expressly ask- ing him to notify his present employer, which impresses him with the fact that he will be expected to do the same thing again ; (2) Deferring final payment until the desired period of notice is over ; (3) Making him understand that future recommenda- tions depend on his manner of leaving ; (4) The employer’s reciprocating in giving advance notices of discharge and laying-off. Second Interview.— When the applicants have been summoned in response to the foreman’s requisition, there ensues the first prolonged interview. During this inter- view the applicant must be given full and frank informa- tion about the work, its advantages, and drawbacks. The difficulties of the work are emphasized by some employ- ment managers, and the maximum earnings understated. The permanency or temporary nature of the position should be revealed in full, since giving this information forestalls dissatisfaction and insures a more stable working force. Judgment of Personality. — From the selective point of view the purpose of the interview is to judge personality and whether or not the applicant will fit in with the “ Spirit of the Hive.” Joseph and Feiss Company particularly emphasize the importance of the applicant’s fitness for the organization. Dr. Katherine Blackford would have the employment manager unobtrusively fill out an analysis blank noting the external characteristics, the color of the eyes, shape and size of the head and hands, etc.; from this is later built the entire inner man. But the data of achieve- ment of physiognomists are meager and the results obtained do not, as yet, warrant a general adoption of their schemes. A more promising method of determining personality is 54 THE HUMAN FACTOR IN INDUSTRY that of Dean Schneider, of the University of Cincinnati, who suggests that the employment manager in conversa- tion note whether the applicant is mental or manual, di- rective or dependent, original or imitative, social or self- centered, an indoor man or an outdoor man, a man of large or small scope, settled or roving in disposition, accurate or inaccurate, rapid or slow to codrdinate facts, dynamic or static.2® These characteristics are significant in the matter of vocational guidance, but it will be a rarely skillful manager who can so define the applicant in the brief period of an interview. Present Interviews. — When the employment manager of the Curtis Publishing Company claims to judge the ap- plicant by the set of chin, shape of mouth, courteous vigor of hand grip, address, bearing, steadiness of eye, neatness, etc., one cannot but wonder that all positions should require just these qualifications to insure success.*4 The most ac- complished prevaricator will have a steady eye, for instance. But the qualities looked for by Dean Schneider are not superficial and indicate the tendency among those interested in employment methods and vocational guidance to give the interview a much needed definiteness of object. Pro- fessor Scott tells of an experiment made by the American Tobacco Company.** Six managers of sales divisions in different parts of the country came together to select eighteen salesmen from thirty-six applicants. Each manager inter- viewed and selected his men independently and by his own method. In the case of twenty-eight applicants there was not even agreement as to whether they belonged in the upper or lower half of the group of thirty-six. One was rated as number one and thirty-two, another as three and thirty. The experiment indicates that ordinary methods of inter- viewing are thoroughly unreliable. A Concrete Scale for Rating Applicants. — The concrete scale used to-day to rate the ability of the officers of our HIRING AND HOLDING 55 army was devised by Professor Scott and suggests a system which might be adapted to the interviewing of industrial applicants. By this rating system a Major keeps before him the names of five tried officers rated in one group ac- cording to their physical qualities, in another by their in- telligence, in another by their leadership, etc. The officer in line for promotion is then given the rating of the superior officer whom he most resembles on each point and his total percentage rating compared with the total ratings of those five officers. This method has proved its practicability in the army and in the same definite way an employment interviewer could judge the personality and apparent suita- bility of an applicant by comparing him with five employes who have “ made good ”’ in the job under consideration. The questionnaires used by the Personnel Department of the United States army to ascertain the past experience and proficiency of every man drafted into the army who had been previously engaged in a trade, are suggestive of a method by which the interviewer might be utilized in finding out the appli- cant’s technical ability. These questionnaires are a form of oral examination on tools and methods of work and a man’s answers are, therefore, a more satisfactory basis for judging his capacity than any brief statement as to his past occupa- tion. Psychological Tests. — Appreciating the weakness of the interview in determining individual capacity and the im- portance of placing the worker in the position for which he is best fitted, psychologists have studied the problem of placement. Attempts have been made to develop tests which will make it possible to fit the worker in that niche in which he belongs and in which he will be happiest and most effective. There is much skepticism as to the results of such efforts; the experts in the field being among those most frequently advocating caution in the application of the principles of their science. Though still experimental, 56 THE HUMAN FACTOR IN INDUSTRY psychological tests have indicated their value sufficiently to encourage further careful study. Development. — The first vocational test designed by psychologists was Professor Seashore’s of the University of Iowa. His pioneer effort was to eliminate the “ unfit” from among those selecting a musical career, by means of tests for auditory acuity and tonal discrimination. Tele- phone companies now commonly test the acuteness of hear- ing of applicants. The Army and Navy add to such a test one for color blindness. In industrial fields the railroads and some industrial plants test every applicant for work for color blindness. But psychology is passing from the realm of these more obvious, physical characteristics to the testing of the so-called mental characteristics and apti- tudes. Not only should a telephone operator have keen hearing and dexterity but good memory, attention, intelli- gence, and exactitude are all essential. Professor Muen- sterberg supplied the Bell Telephone Company with tests for these qualities. The Curtis Publishing Company apply Professor Muensterberg’s tests to their clerks and stenog- raphers as contributory evidence of efficiency and accuracy. Correlation with Experience. —— Cheney Brothers use a series of Professor Scott’s examinations for their high grade clerical, systematizing, cost, executive, and sale forces. It is found there that “ the correlation of tests with subsequent accomplishment is extremely high and that such tests offer a very valuable aid in selection.’"8 Thirty of their efficiency experts were examined and the results correlated up to 87 per cent with the judgment of their supervisors.?? Joseph and Feiss rely in part on psychological tests prepared by Professor Scott for the selection of their employes, includ- ing a test of the ability to follow instructions. Testing twenty-one of their employes, both operatives and exec- utives, the results checked up accurately in nearly every case with their records and personal estimates of ability.® HIRING AND HOLDING 57 Salesmen’s Tests. — Of late the salesman has received much attention from the psychologist. A codperative undertaking, the Bureau of Salesmanship Research, has been organized at the Carnegie Institute of Technology, by thirty corporations employing large numbers of salesmen. Under the direction of Professor Scott, scientific studies of salesmanship have been undertaken and tests are being developed.*® These include examinations on (1) general native intelligence; (2) foresight and imagination; (3) ability to understand instructions; (4) ability to see what is wrong in a more or less complex situation, and to correct it; (5) general information. Time Required. — Occasionally, objection is made to the length of time required for the psychological examina- tion. The Metropolitan Life Insurance Company claims, however, that if the applicant for a clerical position cannot endure a three and a half hour examination he or she will probably not be able to do a day’s work. The Curtis Pub- lishing Company pays fifty cents to every applicant for each day devoted to the examinations, whether or not the appli- cant passes. This sum pays the expense involved of car fares and lunch.’ Value in Eliminating Applicants. — There is every indi- cation that vocational and industrial psychology will tend to exterminate the old try-out methods of selecting em- ployes. The Curtis Publishing Company, in 1913, after weeding out 80 per cent of their applicants by means of the interview and an examination of the application blank, gave the psychological examinations which eliminated 50 per cent of the remaining group. An instance is given when, out of twenty-five applicants for particularly exacting stenographic work, only one passed the tests.’? Previously, some dozen girls would probably have been tried out, one after another during a period of several weeks, before the right girl could have been found. By means of the psy- 58 THE HUMAN FACTOR IN INDUSTRY chological test, without the cost to the worker of losing a position, or to the company of losing the time, the right one out of the twenty-five was found within a few hours. Function of Psychological Test. —In the selection of ap- plicants for highly specialized work the function of the psychological test will be to eliminate. But in work re- quiring lower and consequently more usual grades of ability the psychologist will assist in placement rather than se- lection. Mr. Feiss emphasizes the fact that general intelli- gence tests are not used to eliminate but to place applicants at the Clothcraft Shops. As an example of what the use of the Binet tests might make avoidable, he tells the story of a young girl who was employed by the Clothcraft Shops and put on a simple operation where she became very efficient. She was advanced and was unable to make good though tried out on various operations. She finally quit, but returned in a few months and was tried out on machine work. She again failed, and when at last put back on a simpler operation re- quiring less dexterity and intelligence, she began to progress until now her earnings average with the best.® Placement of Low Average Mentality. — Much of the work in industry can be done by the person of average or low mentality, although there will probably never be a return to the system by which a manufacturer in England, in 1815, agreed with a parish to take in his factory one idiot with every twenty sound children.** One industry can af- ford no employes of merely average intelligence, while it may be that another can utilize few mentally superior em- ployes. If, as has been claimed, from five to fifteen per cent of the employes in any factory are subnormal, there is here a field for psychological placement in industry whose surface has scarcely been scratched.®9 But the millennium is not yet in sight. Psychologists themselves will not prophesy. As Professor Whipple re- marks: “ The psychologist in my judgment would better HIRING AND HOLDING 59 wear a veil of modesty and not seek to emulate the boast- ings of physiognomic charlatans who claim to have selected 12,000 persons for 12,000 jobs without one single mistake, by their system of concave and convex faces.” 4° Further- more, the problem of selection can never be entirely solved by even the most cleverly devised psychological examina- tion. Such methods of prolonged’ observation as Dean Schneider can employ in the College of Engineering at the University of Cincinnati, where he experiments with the young worker while in training, alone provide for adequate vocational guidance. Until the schools commonly adopt vocational training for the older pupils and scientific vo- cational guidance as part of their curriculum there can be no real adjustment of man and job. Physical Examinations. Purpose.— The physical en- trance examination in industry has extended rapidly as a result of the passage of the workmen’s compensation legis- lation. Its obvious purpose is to protect the industry from the danger of accidents among workers who are not physi- cally fit, and yet the elimination of the unfit should be only a secondary aim of the medical examination. The main objects are properly to protect the prospective employe by placing him in a position in which such physical limi- tations as he may have will not be disadvantageous to him- self, to his fellow workers, or to the industry. He must be protected from self-injury, his fellow workers from con- tagion or accidents resulting from his physical disability, and the industry from a decreased output and the expense of compensation. This protection demands not the rejection of the physically imperfect worker but his careful placement. In highly hazardous occupations, and in industries in which there is but slight variety of occupation, a high re- jection rate is perhaps reasonable and excusable. Under other conditions, it usually indicates a lack of appreciation of the problems involved. The United States Army, with 60 THE HUMAN FACTOR IN INDUSTRY its rigid physical requirements, rejected, in the first draft, in 1917, between 30 and 40 per cent of the men called. Such a proportion of physical rejections would be suicidal to industry. A short-sighted policy and inadequate analysis of occupations seems to be indicated where a hat manu- facturing company and a life insurance company rejected respectively as many as 25 and 35 per cent of their appli- cants for physical reasons alone. The Stetson Company, in the year ending October, 1915, rejected 78 of 311 appli- cants examined.*1 During the year ending November, 1917, in the Metropolitan Life Insurance Company, 770 out of 2201 applicants failed to pass the medical examination.” Technical skill and mental ability do not necessarily co- incide with perfect health. To secure the former no industry can afford to reject the many applicants whose physical condition is imperfect. Many firms realize this. Sears, Roebuck and Company, in 1916, out of 7000 applicants for work found 22 per cent with a definite, diseased condi- tion. Of these only 3.1 per cent were refused employment and the other 18.9 per cent went to work in carefully se- lected positions.* The Rike-Kumler Company, a depart- ment store in Cleveland, in one year rejected only 5 per cent of their applicants for physical reasons alone. The reasons for these rejections were, in their order of frequency, ° venereal disease, tuberculosis, contagious skin trouble, eye diseases, and physical infirmities. 65 per cent were in good condition and the remaining 30 per cent were watched with weekly re-examinations, while cases of defec- tive teeth, nose and throat trouble, defective vision, flat feet, varicose veins, and hernia were corrected, in part at least.“ Cheney Brothers can provide similar records.8 The Chicago and Northwestern Railroad found 12 per cent of men examined unfit for the form of employment sought.” An Aid in Placement of the Unfit. — That the importance of proper placing is the main purpose of the medical exam- HIRING AND HOLDING 61 ination is clearly pointed out by Dr. C. G. Farnum, of the Avery Company, who says, “ We are continually asked what we do about men with one arm or one leg, with bad vision or defective hearing, with those that have hernia or Bright’s disease, or high blood pressure or heart disease or any other of the thousand and one defects the American workmen possess. What do we do? Why, we put them to work, but we put them to work compatible with their con- dition and get busy on the improvement of that condition.” #! In this connection might be cited the case of one Philadelphia manufacturer of bolts, nuts, and rivets, who has found by changing a foot treadle to a hand motion that men twisted with spinal meningitis and otherwise crippled make better workmen than physically fit employes.4* The Crocker- Wheeler Company, manufacturers of electrical supplies, has taught thirty blind people how to wind coils for arma- tures, a process in which the sense of touch is all-important. The Pennsylvania State Bureau of Employment recently studied the case of “a man paralyzed in both ankles and prevented by the physical examination test from securing work at his trade of machinist in the large industrial plants. He was successfully placed in a smaller shop on special work of an intricate character.*’ Proper places can be found even for persons suffering from tuberculosis or in whom the disease has been recently arrested. The Cincinnati Bureau of the Handicapped is placing many of this class as well as finding suitable occupa- tions for those who suffer from various other handicaps.*? The continued financial success of the semi-philanthropic workroom under the direction of the Committee on the Jewish Tuberculous is another indication of the possibility and even advantage of using persons not in perfect health.*® The Metropolitan Life Insurance Company has in its Home Office several hundred clerks who have at some time been treated for tuberculosis. 62 THE HUMAN FACTOR IN INDUSTRY A change in attitude toward medical examinations is imminent. The medical examination at entrance will gradually assume its real function as a means of proper placing. It will result in benefit to both employer and applicant. The largely justifiable hostility of labor leaders that has accompanied its introduction will tend to disap- pear. References. — Two kinds of references are ordinarily required, (1) character references and (2) references from former employers. The first are of comparatively little value because the witnesses are not disinterested. But employers ordinarily ignore the second group as well be- cause of the difficulty in securing any but vague and in- different replies to their requests for information. Further, it has been suggested that it will always be dangerous to tely on even the most complete reference, since a man who fails with one employer may succeed in a new environment. General references, addressed to ‘‘ whomever it may con- cern,” are no longer credited. Progressive employers do not give them but are offering to furnish references upon the request of employers. If employers answered queries about former employes frankly and carefully, they would not only really help the employe, by preventing his being placed in work for which he is unfit, but in the end their frankness would be reciprocated. The Edison Company has forms for this purpose, on one of which the foreman of the former employe supplies information as to the character of the service rendered and on another the Employment Bureau makes entries regarding dates of employment, causes of leaving, and records. If a stamped, addressed envelope is inclosed, together with a form containing specific questions, more answers and more reliable information will be secured. Value of Definite Questions. — The principal difficulty with the letters now sent to previous employers lies in the HIRING AND HOLDING 63 vagueness of the questions asked. A short questionnaire has been adopted by Cheney Brothers asking the “ former employer simply to check off in spaces provided, the nature of the applicant’s service as to work, conduct, ability, and character.” In ninety-five per cent of the cases in- vestigated they receive sufficient information.’ The ref- erence letter form used by the War Department is brief and yet definite and is exceedingly suggestive. This allows space to place a check mark under Very Good, Good, Fair, Poor, Very Poor for certain distinct qualifications such as ‘Trustworthiness,”’ “Ability to manage other workers,” ‘Skill in a given occupation,” etc. Unless such a plan of asking pointed and definite questions is adopted, former employers answer carelessly and usually favorably, if at all. When the emphasis is placed on the proper placement of the individual, references from previous employers will be- come increasingly valuable, and their purpose of the past —to weed out labor agitators and floaters — will become of minor importance. INDUCTING AND RETAINING THE EMPLOY The period immediately following the selection of a new employe is a difficult one. It will determine in a large measure his future success. The main responsibility for making this period as easy as possible rests on the employ- ment manager. The first impression of the new plant is the one that he has given; in the mind of the new employe he is all-important because in his hands lay the giving of the job. Every effort must be made to make the impression a favorable one. In the final interview the details of the or- ganization should be made clear and the general spirit of the employer conveyed. But further effort is necessary successfully to induct the worker. Printed rules, instruc- 64 THE HUMAN FACTOR IN INDUSTRY tions, and suggestions are of distinct help and are widely used. Employes’ Handbooks. — It is difficult to make printed instructions as interesting to, or as popular with, the em- ploye as with the employment manager. They should be as brief and as concise as possible, and the fewer the instruc- tions and the more complete the information brought within the covers of one or two booklets, the more sure are they to command attention.* The Dennison Manufacturing Company and Curtis Publishing Company have the em- ploye’s name printed on the cover of the rule book, which is given to him immediately on engagement,*4 so that he will the more readily carry it home and read it. The Common- wealth Edison Company require the employe to sign a re- ceipt for the book stating that ‘‘the policies, methods, and rules of the company, as set forth therein have been care- fully studied.” This receipt must reach the employment department within five days after his entering the com- pany’s service. Follow-up Work. — In order to impress the new employe with the real interest that the corporation has in his future, the employment manager frequently introduces him to the foreman or other immediate superior. It then becomes the latter’s duty to make further introductions and to ex- plain the work in detail. Every effort should be made to make the new worker “feel at home” and appreciate the importance of his work. In order to eliminate the “ sky- larking ” and practical joking at the expense of a new em- ploye, it has been suggested that a fellow worker be ap- pointed as temporary guardian. To overcome any pre- liminary difficulties that may arise, “‘ follow-up interviews ” are held within a few weeks after the employe starts work, * An excellent book is used by the Miller Lock Company. It combines information on hours of work, wage scales, and methods of payment, with safety-first advice and an explanation of the medical, educational, and social advantages offered by the company. (1917.) HIRING AND HOLDING 65 by the employment officials of the Eastern Manufacturing Company, the German-American Button Company, and the Curtis Publishing Company, among others. The follow-up function of the employment bureau re- solves itself into the difficult one of vocational guidance. The esprit de corps of the entire plant depends on the em- ployment manager’s skill in directing the promotion of the employe as rapidly and no more rapidly than his ability warrants ; in adjusting causes of difference between workers and foremen; in eliminating general causes of dissatisfac- tion; and in placing a “ misfit’ or failure where he will “make good.” It is this function which is the most im- portant, least developed and most interesting part of the work of a centralized employment bureau. Tardiness and Absences Causes of Labor Loss. — Labor loss attends the failure to keep the number of workers on the pay roll up to the required standard for every work hour; the employment of a superfluous number of workers ; poor attendance, and large labor turnover.* Every case of lateness or absenteeism means a drop in output, while “ tardiness is incipient absence ” and “‘ absence is incipient labor turnover.’ 4° Methods of Correcting Bad Attendance. — The first step in reducing absenteeism or tardiness is the attendance record. Knowledge that such records are being kept in itself dis- courages malingering or unnecessary absences. If a time clock is used, it may be placed at the entrance of a small plant. If the working force is large, however, to avoid congestion time clocks are often provided for each department. On clock cards or special forms kept in departmental files, the employment manager or foreman may record reasons for bad attendance. Daily or monthly records should show the * For methods of computing labor loss caused by variations from the standard work force and poor attendance see Handbook on Employment Management, U. S. Shipping Board Emergency Fleet Corporation, Special Bulletin, Labor Loss; Phila., 1918. F 66 THE HUMAN FACTOR IN INDUSTRY number of employes late or absent, the number of hours lost by each and the reasons for absence, whether “ laid off,” “vacation,” ‘ accident,” “sickness,” “ family rea- sons,” ‘ grievance,” “unknown,” all of which may be classified also as avoidable or unavoidable. Making Lateness Difficult.— At the Midvale Steel Company ninety-five per cent of all lateness has been found to occur within the first half hour, and most of that in the first ten minutes. Some plants lock their gates at a cer- tain time after opening hours and keep them locked until the end of the work period, so that only those who are prompt are allowed to work. This is the case at the General Electric Company at Lynn, the Fore River Shipbuilding Company, the Cleveland Metal Products Company, and the large textile mills at Lowell. At the Fore River Shipbuilding Company, however, a late employe who feels that he has an excuse may submit it to the chief timekeeper who in turn refers it to the foreman. With the foreman’s permission the man is admitted. At the Strawbridge and Clothier’s Store in Philadelphia those who are late must sign a slip at a central desk, a system which has reduced lateness from between 5 and 10 per cent to 2.5 per cent.°° Investigation of Absentees. — Home visiting for the in- vestigation of absences by some one person specially dele- gated to that work is customary in many large plants. Ab- senteeism has been estimated to range from 2 per cent to 10 per cent of the plant enrollment. One person by careful planning can cover about twenty calls in four hours, if the calls are reasonably near each other. The investigation of all absences, therefore, in a force of about five hundred people will require the full time of one person, if on foot. The use of an automobile saves at least half time and would enable one investigator to cover the needed visiting for a force of one thousand. The United States Public Health Service advises against the extravagance of using the plant nurse or doctor HIRING AND HOLDING 67 for visiting absentees other than those known to be ill. In some plants this is done, however, to make it appear that the visit is made from a desire to give help rather than investigate. A tactful investigator may avoid antagoniz- ing the employe just as easily and may report to the doctor or nurse when medical attention is needed. If it seems desirable to know the reason for absence immediately, a corps of visitors will be needed. By encouraging the em- ployes to report necessary absences in advance and to send word by telephone or a fellow employe on the day of ab- sence, or by investigating absences only after a lapse of a few days, the necessary visiting can be much reduced. Individual Records and Bonuses. — “ Docking ” an em- ploye’s wages in excess of time lost is not only illegal but ineffective. Regular monthly bonuses paid every employe in addition to wages from which deductions are made for absenteeism have proved a valuable incentive to good time- keeping. An employe of the Metropolitan Life Insurance Company, receiving not more than $60 a week who has worked a full calendar year and lost no time through absence or tardiness, is allowed a bonus of a week’s salary. Time lost for any cause is charged against the bonus and a pro rata deduction is made therefrom on the basis of 414 hours per week. When the total time lost aggregates 21 hours, or the number of times tardy is 10 or over, no bonus is paid. The possible weakness in this system is that the period of bonus payment may be too long. Small monthly bonuses would possibly attract more attention.“ In an eastern pub- lishing house each department has its own time clock which each employe rings twice for five days in the week and once on Saturday. The percentage of tardiness to the total number of rings is estimated monthly for each department and de- partmental records prominently posted. This same percentage is recorded for each employe and referred to when individual promotions or raises in salary are under consideration.®° 68 THE HUMAN FACTOR IN INDUSTRY Turnover. — To get rid of an employe is far easier than to help him “ make good,” in the short run; and to let him go, less troublesome than to find out in advance any condition of dissatisfaction and to attempt to remedy it. But the formulation of turnover statistics for his plant will convince the easy-going and unsuspecting employer of a startling weakness in his organization. The National Employment Managers’ Conference in 1918 agreed upon the following definition and method of computing labor turn- over. DEFINITION : Formulating Turnover Statistics.—1. Labor Turnover for any period consists of the number of separations from service during that period. Separations include all quits, discharges, or lay offs for any reason whatsoever. 2. Percentage Labor Turnover for any period is the ratio of the total number of separations during the period to the average number of employes on the force report during that period. The force report gives the number of men actually working each day as shown by attendance records. CoMPUTATION : 1. Find the total number of separations for the period considered. 2. Divide by the average of the number actually work- ing each day throughout the period. 3. Multiply by the proper factor to reduce to a yearly basis. Ezample.— Total number of separations during week, 300. Daily force reports (workers actually on the job), M., 1020; T., 1065; W., 1070; Th., 1035; F., 1040; S., 990. Average for week = 1037. Percentage labor turnover, 389%, X 52 = 1504 per cent. Comparatively few employers have realized that for every man on their pay roll they were probably hiring at least one HIRING AND HOLDING 69 new man every year. This 100 per cent turnover was very general even before the war, and is a sufficient argument to cause any employer to study the reason for his plant turn- over. Many turnover figures have been larger. The Federal Commission on Industrial Relations found in an investigation of the cloak and suit industry of New York in 1914, that in 16 occupations 4000 people were employed to maintain a maximum working force of 1952. An auto- mobile factory was reported in 1912 to have hired 21,000 men to maintain an operating force of 10,000. In 1913 the Ford Motor Company hired 52,445 men to maintain a total of 14,000 employes.? Such figures might be cited ad infinitum with reference to department stores, mailing houses, lumber camps, or steel foundries, and all other industries, operating in the pre-war period of comparatively normal industrial conditions.* * Efforts have been made to estimate the actual cost of labor turnover from the standpoint of industry. The cost should include, according to Mr. Fisher,™ the expense of, (1) hiring and (2) training new employes, (3) of wear and tear on equipment operated by new hands, (4) of reduced production and (5) the excess plant equipment needed to compensate it, (6) of wasted materials, and (7) increased accidents. The cost of advertising for workers, however, and the less tangible expense of lost sales due to spoiled work or delayed schedules, the reduced vitality and efficiency in the workers due to the “ peddling ”’ of their labor, and the inevitable absence of esprit de corps and concerted effort where there is a shifting working force should also be included. The lowest estimate made of the cost to industry of losing * During the war, turnover figures exceeded all previous bounds. 70 THE HUMAN FACTOR IN INDUSTRY and replacing one worker is $25.00.* More commonly $50.00 is the estimate, but some employers place it at $200.00, and Mr. Fish of the Norton Company gives be- tween $300.00. and $450.00 as the probable net cost of re- placing one of their pieceworkers. Obviously the cost varies in every case and with every grade of labor involved, the only constant factor being the clerical work of entering a new employe on the pay roll and taking the old one off. Deere and Company claim, for instance, that it costs $1000 to break in a new foreman, barring accidents. Calculating on a $25.00 per man basis, the Ford Company’s turnover in 1913 cost a minimum of $1,261,200 and probably more than $2,000,000.2 An interesting analysis of turnover costs was recently made by an efficiency engineer in a Pennsyl- vania munitions plant, where the loss in one year due to hiring 6106 men to maintain a quota of 1054 was estimated far to exceed $126,300, which covered only the cost of hir- ing, instruction, damage, and reduced production, on a basis of $25.00 per man hired. This omitted the cost of excess plant expense, one item of which was ascertained to be $32,400.55 The gap between the possible efficiency of a stable force and the actual efficiency was claimed to be equivalent to an underproduction of some 20,000 pounds of powder daily, or 50 per cent of the amount actually pro- duced. Such figures as these, although imperfect, are gen- erally accepted by business men as an understatement of a great and unnecessary waste to which we are acquiescing in our present industrial organization. No attempt has as yet been made to measure the cost to the worker and to his family of this continual shifting. Analyzing and Reducing Turnover. — A recent examina- tion of 100,000 causes of leaving employment in several * For methods of determining the cost of labor turnover see Mr. Fisher’s article in the Bulletin of the United States Bureau of Local Statistics, No. 227, p. 60. HIRING AND HOLDING 71 representative plants of the country revealed that 74.6 per cent quit of their own accord, 12.2 per cent were laid off, 13.2 per cent were discharged.*¢ The large percent- age of those quitting is probably abnormal and due to the unusual industrial conditions of war time. The study of reasons for leaving is of vital importance in reducing turn- over. A rubber company employing 12,000 men found, in the analysis of their turnover of one year, that a large per- centage of the men left because of the monotony of the work.” Such a condition might have been remedied by routing the worker, shortening hours, or providing fre- quent intervals of rest, and be less costly than allowing the turnover to continue. The Dennison Manufacturing Company in 1915 reduced the number of employes leaving because of dissatisfaction with either pay or work to 173 per cent of the number of those leaving, dissatisfied, in 1913. This was due to the work of the employment department installed in 1914.6 According to E. C. Gould, a factory employing some 20,000 men found 20 per cent of those who left them in 1917 (66 per cent reported reasons for leaving) doing so because of ‘‘ working conditions.’”’ The reasons classed as “ personal,” or ‘needed at home,’’ may be attributed to causes over which the company had no control. But these were only 21 per cent of the total reasons given.*” The usual reasons for leaving employment may be grouped : work Voluntary, because of pay personal reasons ; business or seasonal laid off for fluctuations Involuntary, discipline because unfitness for work discharged on account of | personal shatter 72 THE HUMAN FACTOR IN INDUSTRY A committee of the Boston Managers’ Association, of which Mr. E. H. Fish was chairman, has suggested a valu- able form for analyzing causes of turnover.°* This makes it possible to show the reasons for leaving under the headings of “Left of own accord,” “Discharged,” “Laid off” and “Transferred.” These are again subdivided into 32 detailed headings. From the use of such a form one could doubtless draw valuable conclusions. If the causes of leaving were grouped under the more general classifications of (1) “ transfers within the Company,” (2) ‘“ causes of leaving for which the Company was not to blame,’ and (3) ‘ other causes,” the result might be of even greater value. If it is of no particular importance to know that a change in staff is necessary because of a death from natural causes, or be- cause a younger employe has returned to school; it is of prime importance to analyze discharge and carefully to consider the cases of persons who leave because of unsatis- factory working conditions. Interviews with Those Leaving. — Such statistical analyses will throw light on the main problems of turnover that confront the individual plant. This composite picture of the maladjustments existent in the personnel of the plant will indicate remedies in some instances, in others it will direct further study. But each individual case of leaving must be carefully considered. The underlying cause should be sought out and removed whenever possible. No one leaving voluntarily should be allowed to draw his final pay without an interview with the employment manager. This will mean that every employe leaving the plant has discussed his difficulties, not only with his immediate su- perior, but with an impartial third person. There will be exceptions, of course, where there is no system of deferred payment and where the employe simply disappears after pay day. HIRING AND HOLDING 73 Transfers. — By obtaining interviews with those leaving voluntarily the employment department may often effect adjustments by transfers and promotions. The larger the organization the more simple becomes the problem of transfer to more congenial or otherwise more satisfactory work. The Ford Motor Company transferred in one year 2847 men who had given notice of leaving. What the employment department may accomplish is indicated by the work of the department of the Dennison Manufactur- ing Company, where there were 219 Transfers Effected in 1915.8 (1) For promotion — 40 per cent; (2) By request — 4 per cent; (8) Because of failure in first position — 18 per cent; (4) Because of personal demands — 29 per cent; (5) For miscellaneous reasons — 9 per cent. The small plant can also accomplish much in this field. Slight adjustments in occupations will often suffice to eradi- cate difficulties, and although a large transfer rate indicates conscientious effort on the part of the employer to retain his employes, it may also be a sign of restlessness, instability, and inefficiency. Each transfer must be carefully considered so that it may benefit both employer and employe. Promotions. — Promotions are another form of transfers. Facilitating promotions is one of the prime functions of any employment bureau. Recognition of ability saves the company not only the expense of importing talent but fre- quently the loss of a dissatisfied employe as well. One firm’s employment office regularly reviews the wage rates and in all cases which have not been recently advanced, conference follows with the foreman. Cheney Brothers uses the results of the entrance tests as a basis for promo- tion, choosing clerks, for instance, from the mill operatives who show ability in simple mathematics, general intelli- gence, speed, and accuracy.1® The Western Electric Com- 74 THE HUMAN FACTOR IN INDUSTRY pany considers the next man in line in every vacancy before going outside for a new employe, and it has been done so far with success. In Germany 65 per cent of the men in tech- nical and managerial positions come up from the ranks in the foremost industries.” The effect which the establishment of the employment bureau has had on the provisions made for transfer and pro- motion is indicated in the following analysis of Mr. Kelley’s.* Or 18 Firms wits SEPARATE EMPLOYMENT Or 12 Firms wirsoutT SEPaRATE EMPLOYMENT DEPARTMENTS DEPARTMENTS 1, or 8.3 per cent 2, or 16.6 per cent 7, or 38.8 per cent 13, or 72.2 per cent had definite plans for promotion informed employes of opportunities for ad- vance had written job specifi- cations provided for transfers and try-outs in other departments gave the foreman full power of discharge investigated cases of discharge investigated majority of cases of ‘ quitting ”’ 1, or 8.3 per cent | 14, or 77.7 per cent 5, or 41.6 per cent | 14, or 77.7 per cent 5, or 41.6 per cent 7, or 38.8 per cent 4, or 33.3 per cent | 15, or 83.3 per cent 4, or 33.3 per cent | 13, or 72.2 per cent Recommendations. —It is only in a matter of purely personal concern which withdraws the worker from the plant, such as a change of residence, for other than reasons of inadequate housing facilities in the region of the plant, or a woman employe’s marriage, etc.; that the employ- ment bureau is completely helpless. But when an employe is leaving voluntarily, whether for better opportunities than can be offered in the plant, or for personal reasons, it is important that he go with the “ fullest good will” of HIRING AND HOLDING 75 the company. ‘ Perhaps,” says Mr. Williams, of the New York Edison Company, “the greatest encouragement to faithful service is the realization that it will be recognized outside as well as within the company.’’ The employ- ment bureau must be ready at all times to give frank, ‘courteous responses to queries of references for former em- ployes. Location and Arrangement of Employment Office. — For the sake of convenience the employment office should be located on the ground floor. Adequate and comfortable quarters should be provided. Even a small department should have separate waiting and interviewing rooms. In large plants there is often a preliminary interview room as well as a final interview room. Any unavoidable waiting period before interviews should be made as pleasant as possible for the applicants by the provision of agreeable surroundings and comfortable seats. In laying out the department it should be borne in mind that here the appli- cant receives his first impression of the organization, and the first impression may be a lasting one. Handling Applicants. — Two methods of handling ap- plicants are used: a doorman gives consecutive numbers to the applicants in the order in which they arrive and by which they are then interviewed; or the applicants all fall into a single file leading to the interview room.*° The Record of Service. — Prerequisite to any systematic development of an efficient working force is the preparation of filed records of employes including all data relative to their history before and since entering the firm’s employ, such as application blanks, references, medical and mental examination reports, efficiency records, accidents and sug- gestions records, transfer and promotion slips, etc. Usually there is space provided on the cover of the folder in which such data are filed to list, in addition to the employe’s name and number, the department in which he works, the posi- 76 THE HUMAN FACTOR IN INDUSTRY tion he is filling, his wage rate, the date of his engagement and of subsequent transfers or promotions, the date of his release and the reasons for his release. The Avery Com- pany reproduces on the cover of the folder the application blank and utilizes the inside of the folder for the record of the entrance medical examination report of the employe, thus preventing the possible loss of the two most important records. To such a file the employment department will resort for information about any employe recommended for discharge, transfer, or promotion. Employment Records. — The necessary files for an em- ployment office will include: © 1. Application blanks of future employes. 2. Individual records of present employes. (a) Past history: application blank, references, medi- cal rating, mental rating. (b) Transfers, promotions, changes of rate. (c) Periodic summary of individual’s pay roll: earn- ings (piecework), bonuses, latenesses, absences. 3. Records of ex-employes: individual records, leav- ing slips, with reasons for leaving and other information obtained. 4. Numerical file: cross index for badge or identifica- tion — check numbers. 5. Daily blotter of men hired and transferred (for com- piling monthly reports). 6. Daily blotter of men removed from pay roll. CHAPTER IV EDUCATION Need for: Industrial Education. — “Seven million workers in American manufacturing establishments pro- duce about one third of their potential output and three out of every four workers contribute less than the average production of the four,’ was the startling statement of Charles T. Clayton, director of the United States Training Service in the Department of Labor at Washington.! It has been indisputably proved that this is in large measure due to the lack of training of industrial workers, a lack which has existed only since the breakdown of the old ap- prenticeship system, which provided general training in all branches of the trade as well as the necessary background of theoretical education. The problem of modern education has been to find a sub- stitute for this system. At present there is a growing realiza- tion that even the technical and trade colleges and schools have not fully met the situation because though technical knowledge is supplied, practical experience is lacking. Dean Schneider of the University of Cincinnati has tried to com- bine the theoretical training with the practical work in the College of Engineering at Cincinnati. The present move- ment for vocational training in public education coupled with the part-time school system is an attempt to give to the mass of workers some of the benefits of the apprentice- ship system by fitting them for and placing them in the proper industrial niche. Public Provision. — Before the war, Germany, alone of all nations, had a widespread system of public industrial 17 78 THE HUMAN FACTOR IN INDUSTRY education. There children between the ages of 14 and 18 were compelled to attend trade continuation schools for eight or ten hours each week during work hours.’ The re- sults obtained gave impetus to the movement for voca- tional education in other industrial countries and moved both private and public agencies to a renewed attack on the problems involved. In England the new Education Bill requires children employed in non-essential dccupations to attend vocational schools until they are 16 years of age. In other words, the law aims to give each individual a mental background and training in the arts and crafts before allowing him to take up a distinct vocation. After 16 years of age the child may become a wage earner, but until eighteen must attend continuation schools for three hundred and twenty hours a year.? In these, the studies are directly connected with the industrial occupation. In the United States the Federal Government subsidizes trade, part-time and continuation schools in the separate States. This has caused a great increase of public activ- ities in this connection, whether independent or in con- junction with industry. But to fill existing gaps and to give specialized training, many industrial organizations have found it necessary and of value to develop training facili- ties in their own plants. General vocational and indus- trial education as well as general elementary education in industry is a field whose limits are continually decreasing. Employers’ Provision for Elementary Education Un- necessary. — Although it is impossible to state how far public agencies will assume the full responsibility for voca- tional and industrial education, the tendency is for it to be taken out of private hands. The Federal Revenue Law makes the employment of children under fourteen years of age impossible. In a number of the States the withdrawal of children from wage-earning occupations and their reten- tion in school is enforced by legislation, thus eliminating EDUCATION 79 the need for provision of elementary education on the part of employers and placing the responsibility to an increasing extent on public officials. In those few States which are backward in educational development, employers may feel that it is to their advantage to maintain schools for future employes, as does the Pelzer Manufacturing Company in South Carolina, which supports a school for seven hundred children.*| But in general, it is inadvisable and unnecessary for employers to organize elementary education classes unless to supplement the work of the public schools in the Americanization of foreigners. Industry’s Part in Industrial Education. — On the other hand, no matter how extensive may be the vocational work done by public agencies, industry will always play a large part in selecting and training efficient workers. It is not possible to rely solely on the market or on the public school for skilled workmen. In the first place, the supply is in- sufficient, and secondly, processes and conditions of pro- duction are peculiar to each plant. Again, in the final analysis, technical skill and even vocational selection can only be secured in the factory workshop. The school shop cannot reproduce in minute detail the machinery and con- ditions of commercial production. The pupil must be put to work in a real shop, on a real job, before his fitness for any given kind of work can be determined, and this try-out process may have to be continued for a considerable time and in a number of occupations before the pupil’s industrial niche is found. This does not mean that the trade school, pre-vocational classes and psychological examination have no réle to play in industrial placement. Their rdle is to discover native intelligence and tendencies, but the pupil’s final efficiency depends so much on his individual tempera- ment and on his reaction to his environment that it is im- possible to rely on make-believe shopwork or on any short preliminary test for a just or complete estimate of ability. 80 THE HUMAN FACTOR IN INDUSTRY Moreover, as Dean Schneider points out, the young worker is in a process of development, and what he likes and does well at sixteen he may heartily dislike and do ill at the age of twenty.’ Because of these considerations, employers, in their attempt to fit the job to the man and the man to the job, are beginning to try out new employes on various operations in the shop or in a special workroom in the factory or busi- ness house, before placing them permanently. Public voca- tional schools are asking employers to take their pupils for part-time employment, so that the pupil may experience his trade under actual conditions, while learning certain operations and acquiring the theoretical knowledge in the schoolroom. Technical Training Only One Part of the Problem. — In addition to preparatory training it devolves upon each industry to keep its employes mentally alive. The prob- lem of individual education to-day is twofold. It is neces- sary not only to find and train the skillful workman, but also to compensate the great number of machine operatives for the monotony of their work. If a man’s body is “ ma- chinized ”’ for the greater part of the day, his mind must be kept compensatingly alert, so that he may retain an energetic interest in output, be on the qui vive to avoid accidents, react swiftly to emergencies and adapt himself to the constant changes in methods of production. For this reason, training the employe for promotion, and recrea- tional education are assuming almost the importance which has been attached in the past to the learning of a trade. Mental play and vitality are fostered in addition to manual or trade proficiency. VocATIONAL TRAINING Breakdown of Apprenticeship System.— The develop- ment of workers with the basic knowledge of an entire EDUCATION 81 industry has been the problem of our technical schools and universities. The percentage of college graduates in the population is still, however, negligible. To fill the need, trade schools under both public and private auspices have been developed, and more recently, trade training has been extended to the lower grade of public schools. Union labor has entered the field of training by the development of courses such as those given by the International Typographi- cal Union. All of these attempts have been to replace what was probably the most valuable phase of the lost apprentice- ship system — effective, trained, and interested workmen. The difficulty with all these new plans has been the em- phasis on theoretical training and the lack of adequate compensating practical experience. This led Dean Schnei- der to introduce the coéperative course into the College of Engineering of the University of Cincinnati, which pro- vided alternation periods of work in commercial shops with classwork in the college. The men are paired so that the same place is filled for two weeks by the one man and the next two weeks by his partner. Over one hundred manu- facturers are codperating with the University in all kinds of industries by employing these students and paying them regular wages for time spent in the shop.® Part-time Schools. — Other engineering colleges have followed this experiment. A part-time system is being successfully applied in the High School in Fitchburg, Mass., Solvay, N. Y., York, Pa., and New York City. Paired pupils attend school or go to work alternate weeks or fort- nights. “‘ Coérdinators”” visit the factories or commercial houses to see that the work given the pupils properly fills out the school program and provides the needed experience.’ In New York City in June, 1918, there were six hundred high-school pupils on part time.® Benefits of Part time System.— The actual benefits from such training are intangible, though real both to manu- a 82 THE HUMAN FACTOR IN INDUSTRY facturer and pupil. The employer gains a codperation with the school, and assistance in training a continuous supply of young workers who have wider experience and are better fitted for their work than the ordinary new employes. The employe, on the other hand, achieves actual experience in different types of work, coupled with careful training, and is thus enabled to make a real selection of his vocation. The common objection made before trying the system that the alternation of workers is difficult to arrange and se- riously affects production has proved groundless by ex- perience. The initial hostility of foremen soon disappears. In the third year of the part-time schools in New York City the Washington Irving High School received requests from manufacturers for at least two hundred girls, about twice as many as the school could supply. The Metropoli- tan Life Insurance Company found the part-time system a means of finding efficient workers for future permanent employment. In 1915, the Statistical Bureau needed some extra clerical workers. Six girls to fill three positions for alternating weeks were furnished by the Julia Richman High School. Pains were taken to explain to the girls the meaning of the work they were doing while with the com- pany in order that it might be of real educational value to them. The girls gave weekly reports of their work in their classes at the school. Three of the girls became the bureau’s most efficient permanent workers. Part-time School of National Cash Register Company. — The National Cash Register Company has adopted the part-time school more completely perhaps than any other large industry. Apprentices in all trades are trained on the part-time system, first in the high schools and then in the University of Cincinnati. Applications for apprenticeship are filed in the student’s second year of high school. The following summer the boy is given employment, and if he gives promise is then indentured for four years and sent EDUCATION 83 . back to the high school for two years part-time work. He is paid only for the time spent in the factory. A credit is given him in the school and in the factory for two years’ apprenticeship. After graduation, if the boy should wish to become an engineer and his work warrants it, he may be admitted to the codperative course at the University. He finances himself, but special rates are made for him. In 1914 the four-year course, excluding board, was esti- mated as costing $445. Two weeks are spent alternately at the factory and at the college, and the boy is paid regular journeyman’s wages while at the factory. If he does not wish to go to the University he finishes his apprenticeship term at the factory and attends a continuation school two half days a week for two years. For this time spent in school he is paid in full.2 An adaptation of the part-time school is the codperative educational scheme in use in Chicago and Minneapolis, whereby bricklayers and those in the building trades are given instruction in the public schools in the theory and technique of their trades during the slack winter months of January and February.” Technical Night Schools. — The need of industrial workers to enlarge their technical knowledge in order to put them- selves in line for promotion has led to the wide develop- ment of the technical night school, in spite of the serious objection that unless working hours are unusually short, the work exceptionally light or the school work of a recrea- tional character, the worker has not the physical stamina to secure an adequate return for the time spent. Public educational authorities, employers, and private agencies have organized such night schools. The Murray Hill Eve- ning High School in New York City and the Trade School in Newton, Mass., are notable examples of complete courses conducted by public education." To meet the criticism of employes that the public night-school courses have not met the demands of industry, the so-called short unit courses 84 THE HUMAN FACTOR IN INDUSTRY were formulated, and although they have not as yet been widely introduced into the public evening classes, they represent a new development worth mentioning here. The plan for this system involves the formation into joint advisory boards of employers and workmen skilled in the trade. The courses themselves are organized to serve the specific needs of a particular group, in a limited number of lessons based on material found to be of practical value.” Codperation of Employer and Public Night School. — The codperation of the Green Bay (Wisconsin) Board of Industrial Education with the Oneida Motor Truck Com- pany is interesting. An evening school for teaching various trades is held in the plant. The company provides the equipment, heat, light, and power. Each applicant for admission to a course is first tried out in the department in which he prefers employment. If he promises success in this department he enters the evening school. The edu- cational authorities employ the foremen of the company as teachers. On the completion of the course a certificate assures the pupil permanent employment in the factory. This same plan is being introduced in other cities of the state.% Codperation of this kind between the employer and the Board of Education is undoubtedly helpful. Employes’ Night Schools. — The Casino Technical Night School in East Pittsburgh was one of the largest night schools supported by employers. It was originally founded by the Westinghouse Electric and Manufacturing Com- pany, though the basis of support has been gradually changed with the increase in the number of pupils and the opening of its doors to employes of other companies. Now the pupil is charged a small fee and eight school districts assist with yearly appropriations apportioned to the number of pupils registered. From one hundred pupils in 1904 the num- ber has increased to eleven hundred in 1917. The main course consists of the fundamental principles of engineering, EDUCATION 85 and covers a four-year period.“ The Illinois Steel Company and the Gary Works of the United States Steel Corporation have also made a special point of evening classes in technical subjects pertaining to steel making. These courses are free to all employes.'® Y. M. C. A. Courses. — The Y. M. C. A. has the most extensive night school program of industrial education of any social organization. In many cities definite trade instruction for apprentices is given,” the aim being to co- operate with the industries of the community by giving courses which will cover the entire industrial field. TRAINING WITHIN THE INDUSTRY Need for Training for the Job. — The great value de- rived from preliminary systematic training for new workers before they assume a regular position in industry is fast being appreciated. President Edward Smith of the Ameri- can Manufacturers Export Association has stated that in one factory of 8000 employes where such training had been introduced the labor turnover had been reduced 15 per cent. The results claimed after the introduction of scientific train- ing of new employes by two hundred firms were a decrease in labor turnover and in spoiled work, a lower accident rate, a rising standard of efficiency of the wage earners, and in general better understanding between labor and capital. Moreover, it was stated that the training departments are self-supporting, as the expense of the training is offset by the value of the learner’s work, in fact, in many cases that they yield a return instead of a loss.1 Apprenticeship Schools. — With the gradual elimination of the skilled worker from industry, the substitution of the machine apprenticeship as the method of learning a trade has largely disappeared. Personal instruction of a new hand by a foreman or by an old employe has become a 86 THE HUMAN FACTOR IN INDUSTRY haphazard process. The uninitiated operative is commonly left to teach himself how to fill his new job. The conse- quent dearth of skilled all-around workers, especially in the machine trades, has led to the introduction of the corpora- tion-owned and controlled apprenticeship school; but re- cently even in the less skilled occupations preparatory training for the job has been tried and found of great value. As a result we find specific provision for the training of workers in all kinds of occupations, ranging from the most simple to the most complex in the demands that they make on technical proficiency. Early Schools. — As early as 1895 the Lake Shore and Michigan Railway had its apprenticeship school.1* The gen- eral revival of the apprenticeship contract and apprentice- ship method is more recent. Since 1909 the West Lynn works of the General Electric Company has taken boys from fifteen to nineteen years of age who have completed the grammar grades and are physically sound, and tried them out for two months in the shop. If adapted they are then indentured for three years if molders, or for four years if machinists, tool makers, or pattern makers, and taught the funda- mentals of the trade in a special training room for from one and one half to two and one half years. Regular wages are paid and at the end of the apprenticeship term a-cash bonus is awarded’? The Curtis Publishing Company has an apprentice school for compositors, directed by the manager of its composition division. The course takes five years and the wage paid the boys is increased every six months during apprenticeship. The Packard Motor Car Company of Detroit, Mich., requires that a boy must pass a physical examination, have completed the eighth grade and be at least sixteen years old before he may enter their apprenticeship school. Further, his parents pay a cash deposit of $25.00 and sign his indenture papers in the presence of a notary to impress upon the boy’s mind EDUCATION 87 the seriousness of the contract. A bonus of $100 plus the $25.00 is paid him on the completion of the two and a half years’ course.!® Railroad Apprenticeship Schools.— The most general development has been by the railroads. Many, including the New York Central, the Pennsylvania, and the Southern Pacific, have introduced apprenticeship schools as necessary factors in maintaining the standards of railroad work. The Santa Fe Apprentice School of the Atchison, Topeka, and Santa Fe Railroad was established in 1907 to meet the in- creased demand for mechanics. The payment of a bonus of $75.00 upon the completion of the course and another $75.00 to graduates in the service six months later, is to encourage the apprentices to stay in the employ of the company. It was stated in 1916 that for two years, in spite of a greatly increased demand, the supply of mechanics from the apprenticeship course had met all the demands of the business.?° Coéperation of Public School with Apprenticeship Course. — The School of Chicago (Illinois) Lakeside Press makes agreements with the parents of grammar school graduates between fourteen and sixteen years of age by which the boy is bound for a two years’ pre-apprenticeship course. During this period half the time is spent in the school and half in the shop. Then, should the boy prove satisfactory, his serv- ices are contracted for, for five additional years.2"_ The Fore River Shipbuilding Company of Quincy, Mass., has developed its apprenticeship system in codperation with the part-time school in Quincy. The boys are paired off and spend alter- nate weeks in school and in the shop. To meet the needs of the boys who cannot afford to attend this part-time ar- rangement the company itself has organized a school for apprentices for two days a week, where students are paid during instruction. After a six-months term of probation, if the student in either course is satisfactory, a four-year 88 THE HUMAN FACTOR IN INDUSTRY apprenticeship agreement is signed. The rate of pay in- creases each year, from nine cents an hour at the beginning to sixteen and seven eighths cents during the fourth year with a bonus of $100 awarded at graduation. The fact that so many companies have introduced and maintained apprentice- ship courses is proof in itself that they have been a success. Vestibule Schools. — The war has, moreover, taught us the value of training in other than highly skilled occupa- tions. In 1917 the Recording and Computing Company of Dayton, Ohio, introduced a “ vestibule ” school, a separate training department, equipped with the various kinds of machinery in use in the plant. In this department women war workers inducted into the plant were given from three to ten days’ instruction in methods of work before being put on the floor. The women teachers selected from the shop were not given more than thirty pupils each. The new opera- tive was taught only one job, but the training was thorough. The new girl was paid twenty cents an hour during instruction. In time the old employes were also given this instruction. As a result one set of thirty-one employes changed its rate of production from eight pieces per hour in January, 1916, to fifty-five pieces per hour in 1918. In the assembly department 2000 girls produced 38,000 complete fuses per day in one shift, although expert engineers had estimated 15,000 fuses in two shifts as a possible output.” In a woodwork and paneling factory the course for train- ing is from two to six days and the rate of pay during this time is twenty-five cents an hour for both men and women. The standard of production of this department is even higher than that of the regular shop.% The Packard Motor Car Company kept individual records of each “ learner’s ” prog- ress, not only in the training department but in the shop as well, and a special effort was made, especially in the case of women, to try them out on different types of machines until the occupation best suited to the individual was found. EDUCATION 89 This company justified the expenditure, estimated at $52.21 for training each person for a month, on the grounds of in- creased efficiency of the workers and subsequent better and greater production.?5 Qualifications of Instructors. — It has proved so difficult to secure the right director for these training schools that the qualifications for the job have been analyzed and classi- fied as follows : Par Cent Trade experience. . . . ....... 22 Technical ability. . . ........ 20 Technical knowledge .........:415 Ability to analyze and mee bg. ee ee Oa ees DD Leadership. . .. oo we + eae 1S Personality. . . .......... 10 100 The Emergency Fleet Corporation, to meet this difficulty during the war, gave a six weeks’ course at the Instructor’s Training Center in Newport News to skilled craftsmen selected from shipyards all over the country, to enable these men to go back to their shipyards equipped to instruct new and old workmen in the shipbuilding trades. The shipyards paid the men’s wages during the course and all expenses. The Emergency Fleet Corporation followed up the training and paid a bonus to all workmen under instruction, provided they remained with the shipyards seventy-eight days.?’ Other Vestibule Schools. — Many other war industries had the same experience. The Curtis Aeroplane Corpora- tion of Buffalo, the Nordyke and Marmon Company of Indianapolis, the Lincoln Motor Company of Detroit and the Seneca Falls Manufacturing Company were among those who adopted these “ vestibule’ schools which the Section on Industrial Training of the Council of National Defense urged upon all employers in war industries.?® These war lessons can be applied to peace activities, as well. In- troduction of such training is possible in many plants. 90 THE HUMAN FACTOR IN INDUSTRY General Training Classes. — Between the prolonged and elaborate apprenticeship courses and these “ vestibule ” schools, with their training of three to six days, lie the ef- forts of many commercial, publishing, and manufacturing houses to train their employes for a period of a few weeks or months, preparatory to regular employment. The Northwestern Knitting Mills of Minneapolis gives a three months’ course to cutters before allowing them to do pro- ductive work.!° Telephone companies commonly give field workers a four weeks’ course of switchboard lessons, lectures on the theoretical side of their work, on safety procedure, on the administration of the business, etc., and divide the course into three grades with intervening field work.2!_ Every new employe of the New York Edison Company enters a training class in which he not only learns the technique of his job but in which his personality is studied, and a close record of achievement kept.2® The Dennison Manufacturing Company does likewise, and during this time makes a careful study of the new employe’s vocational attitudes. He is not allowed to enter a regular department until he is able to earn a specified wage.*° Such a procedure relieves the foreman of the responsibility of training, protects the employe from the unnecessary strain which accompanies the learning of a new job without ade- quate supervision, and assures the employer of a productive worker when the employe finally enters a department. Salesmanship Schools. — In this connection special train- ing schools for salesmen deserve mention. The Burrows Adding Machine Company has a school for salesmanship at its Boston office. A six weeks’ course in the theory of salesmanship, comprising four hours’ class work in the morning and three hours of home work for the afternoon, is followed by from four to six weeks of practical field work. Candidates completing this training successfully are eligible for positions as salesmen for the company. Applicants EDUCATION 91 are chosen from among those who answer a carefully worded advertisement describing the purpose of the course and the type of person desired. The answer sent by the company to these written applications explains the details of the train- ing and the opportunities offered on completion of the course, with special emphasis upon the fact that the final selection will be made of those who show the proper qualifications for the work. It has been estimated that one fourth of the ap- plicants are chosen to take the course, and of these one third become salesmen. The course is given free of charge, but the expenses of the students are not paid.*1 The Na- tional Cash Register Company and many other firms have developed schools for salesmen. Instruction on the Floor.— The Joseph and Feiss Com- pany follows a different method in instructing its garment workers. A corps of instructors teaches new operatives from two to ten jobs at the regular machines. An hourly retainer is given while the new hand is under instruction, to make up the regular wage. The plan of teaching a number of jobs provides an extra mental stimulus for the employe by introducing variety into. the work and assuring a re- serve force for necessary shifts as well.22 The American Pulley Company chooses a new employe on the grounds of general fitness and adaptability and then places him under an instructor’s supervision, as a ‘‘ knockabout” worker, until his proper niche is found. Smaller factories in which extensive training schools are not practicable might per- haps follow the plan which is practiced by the superin- tendent of a tissue-paper concern. The instruction of new workers is centralized in two old employes selected not only because of their general skill in the different kinds of work, but for their patience and thoroughness. Education of Blind and Crippled. — To what extent the individual employer can undertake the training of the physically handicapped is not clear. In most instances 92 THE HUMAN FACTOR IN INDUSTRY some other agency must in all probability be relied on to do the training. Nevertheless, the results of the Crocker- Wheeler Company of Ampere, New Jersey, in training the blind to wind coils for armatures is suggestive. Since the fall of 1917, some three hundred and fifty blind people have been so trained. The period of training is from three to four weeks. When proficient, the blind workers are put in the regular shops with the sighted workers, and they earn as much in eight hours as the sighted workers do in seven, and their work is of a higher quality. The dilution of the regular force with these blind workers has been found to have a steadying effect on all the employes because of the earnestness and concentration with which they work, and the school is maintained only because it is an efficiency producer and financially profitable to the Company.** This example has been followed by a number of industrial con- cerns throughout the country, and also abroad, notably the Western Electric Company of New York, the Consoli- dated Safety Pin Company of Bloomfield, New Jersey, the Combination Rubber Company of Bloomfield, the New Toy Company of Newark, the Westinghouse Electric Com- pany of Pittsburgh, the General Electric Company of London and Birmingham, and the Thomson-Houston Com- pany in France. It is interesting to note in this connec- tion that the Ford Motor Company found after a survey of their factory that they could place 4032 crippled men, 2637 one-legged men, 670 legless men, 715 one-armed men, and 10 totally blind ones.%6 Need for Training in the Job. — The recognition and development of ability in a working force is essential to the success of an industry. It must rely almost exclusively, if not entirely, upon itself to fill positions of greater responsi- bility. “Stealing” from other concerns is in the long run bad business policy. It weakens the morale of a working force if the future does not hold promise of reward. Any EDUCATION 93 newcomer must overcome opposition and learn the methods and point of view of the new firm. Promotion from within has disadvantages — it may lead to slow decay because new ideas are not brought in, but for most positions with most concerns, it is the best policy. To make such a program possible, training is essential; but industry must also face the problem of making the worker as effective as possible in the job that he is holding. The old employe as well as the new is worthy of serious thought and consideration. Special Training Classes. In order to acquaint their employes with the special problems within the individual industry, many employers have formed special training classes open to those who care to join. Frequently these give the worker the opportunity to view the business as a whole and to realize his place in the structure of the organi- zation. Western Electric System of Special Training. — The Western Electric Company has a number of such train- ing classes in various departments. In the engineering division, courses in the history and rules of the company and in the study of the practical uses of electricity are open to high-school and grammar-school graduates, while a special class in intensive training in the activities of the company is given for the graduates of either colleges or technical schools. The manufacturing division offers an accounting course of one year for clerical work, a production course of forty weeks in shop commercial work, and a three years’ course of technical training in tool designing combined with practi- cal work in mechanics to those who have completed either high school or grammar school. In the installation de- partment a period of school work in electrical theory and telephone practice is given after the usual preliminary train- ing, accompanied by six months’ field work. Special train- ing for the position of supervisor is given to the graduate who shows marked ability. The distributing organization 94 THE HUMAN FACTOR IN INDUSTRY offers one year commercial course to all college grades. This combines six months’ study of the distributing end of the business and six months in the shops installing tele- phones. At the end of this period the employe is placed at the work for which he is best qualified.2”7 These courses cover every branch of the business and represent a com- plete and well worked out system of special training. Simi- lar systems of practical and theoretical education have been adopted by the American Locomotive Company, the New York Edison Company, and others. Stenographic Classes. — The instruction in stenography given by the Metropolitan Life Insurance Company is popular. One hundred and fifty employes were studying stenography in 1918 for two nights a week, either as be- ginners or in speed classes. The classes are open to any employe with a knowledge of the fundamentals. Pro- motions are made from these classes into the company stenographic division. Special Training for Selected Salesmen.— An intensive and practical course of six and one half weeks in Methods of Production is offered by the American Steel and Wire Company to certain selected employes who are considered capable of progressing. This consists of mill inspections, lectures, quizzes, and discussions, and the time is divided among the three plants at Cleveland, Pittsburgh, and Worcester. Only twelve men are entered in each class. Reports are made weekly and records kept to which the company may refer at any time. The Company believes that the complete survey that is given of the business devel- ops the men mentally and enlists their active interest in its success.?8 Correspondence Classes. — A common way of train- ing employes who are scattered over a wide geographical area is by means of the correspondence course. Some of these have been remarkably successful. The Metropoli- EDUCATION 95 tan Life Insurance Company in 1918 enrolled 3000 field agents in its correspondence course on life insurance. In the seven years since the course was started, 7500 individuals have been graduated. Agents are admitted to the course after six months of service. During the course of the twelve lessons, conferences are held with the district superin- tendents. The effect in increasing the efficiency of the force and reducing turnover is indicated by the success of the graduates.24_ Other employers encourage their employes to take outside correspondence classes, sometimes paying the fees if the courses are successfully completed. Special Training for Foremen.— In order to promote coéperation between the employment department and the foremen in the Dennison Manufacturing Company, a three months’ training period, during which the foremen work in the employment bureau as assistants to the employment manager, has been arranged. The foreman upon entering the course is given a list of suggested reading. He studies employment methods in other concerns and also has a chance to do regular interviewing in order to understand the prac- tical side of the work. The education gives him the broad point of view of the whole organization and a better under- standing of human beings.*? Training Executives. — In addition to plans such as these, some companies have introduced definite training for execu- tive positions either in a major or a minor capacity. The Packard Advanced Training School of the Packard Motor Car Company prepares men, chosen because of unusual ability, for the minor executive positions in the plant. The first class graduated 176 men trained for the positions of job setters and foremen. The class met for an hour a day for ten days. The subjects studied included the handling of men, the premium system, time studies, the care of ma- chinery, safety and sanitation methods, and routine and system work. Results were so satisfactory that classes 96 THE HUMAN FACTOR IN INDUSTRY were added for the women instructors of the “ vestibule ” school and for the foremen already in the plant, to give them the opportunity for broader educational advantages.” Training for Minor Executives. — The W. H. McEl- wain Company, shoe manufacturers of Manchester, N. H., has organized training classes for minor executive po- sitions along similar lines. Carefully selected candidates take courses lasting one to three weeks, consisting of office and classroom work and field work in factory. Dur- ing the first two or three months after the completion of the course the manager keeps track of the work of the graduate and holds conferences with him. The company claims that graduates are promoted twice as fast as those who have not taken the training.*! Flying Squadron of Goodyear Tire and Rubber Company. — The Goodyear Tire and Rubber Company instructs the “Flying Squadron,” a group of chosen men, for two hours a week in English, shop arithmetic, mechanical drawing, economics, management, and rubber manufacture, so that men with a good technical and general education will be available for executive positions.” Promotions. — The promotion systems in many instances are less formal methods of training men while they are working. The so-called ‘‘ three positions plan ” of promo- tion, which has been put into operation in several com- panies by Mr. and Mrs. Frank Gilbreth, places each man in the organization in three positions, first, the one last oc- cupied by the man; second, the present position; and third, the position for which the man will next be eligible. In this way everyone has three functions to perform — (1) to teach the man under him, occupying the old position, how to fill it, (2) to do the work of his new position, and (3) to learn the work of the man in the position next above.” The division officers in one large concern familiarize them- selves with the work in the general office while their sub- EDUCATION 97 ordinates do their work, and so on down the line. Thus new men are constantly being tried out and trained for the future. Such “ understudy ” plans are used by many rail- road organizations, by the Fore River Shipbuilding Corpo- ration, the United Cigar Stores, the National Cash Register Company, and the Dennison Manufacturing Company.*® 38 Coérdinated Education and Promotion. — The National City Bank of New York City has a carefully coérdinated system of education and promotion. A young boy, for instance, may be examined and if satisfactory taken on as an office boy or page, and placed in the Page Class for one month. In this Page Class, which meets twice a week during busi- ness hours, he learns the geography, rules, and officers of the bank, etc. If he passes the examination given at the end of the month and if his personality seems fitted for the work, he is entered as a regular page at the end of three months’ probation period and remains a page from one to two years. He is then eligible for the messengers’ department of the filing department, but must first attend the Messengers’ Filers’ Class for one month and pass another examination before promotion. After six months he is considered for promotion to the check desk, for which work he must again be trained. While at the check desk he is allowed to apply for one of the special classes in stenography, bookkeeping, foreign exchange, credits, foreign trade, new business, in- dustrial service, or bonds, loans, and investments, and if the Educational Committee approves of his choice he is then trained for this still higher work. This sequence of posi- tions and classes covers a period of nine years and combines with technical information on the history and methods of banking, courses in English and arithmetic. When an employe is in the Fourth Year Class work and has been with the bank two years, he may select and attend approved courses in English and Political Economy in outside schools, and the City Bank Club, an organization of the clerical H 98 THE HUMAN FACTOR IN INDUSTRY force, will refund all fees for such courses upon satisfactory completion. A few of those who enter the bank from the high schools or colleges, having apparent ability, are en- rolled in the Apprenticeship Course of the Bank for a period of from two to four years. The bank retains the privilege of terminating the apprenticeship whenever the employe’s work is unsatisfactory. These apprentices are shifted from department to department and promoted more rapidly than the other workers. Several of the apprentices are selected each year to become members of the College Training Class, in which college graduates are trained for foreign service.“ Plant Charts. — A plant chart, giving every position in its relation to every other, facilitates promotions. When the new employe is engaged and interviewed his position on this chart is indicated, showing the possible line of ad- vancement and the probable length of time it will take him to advance. If the employe wishes he may tell what line of promotion he would like to follow. At intervals thereafter the manager of promotion should interview the employe and check up his progress on the chart, and when unsatis- factory, make an effort to discover the reason. If an employe chooses to remain in any one position permanently, he should then teach his subordinate only enough of his work for that man to advance above him. GENERAL EDUCATION Need for General Education. — Besides the special train- ing which employes are receiving to make them effective workers, familiar with the technical problems of the in- dustry, and to train their executive ability, employers are seeking to develop greater efficiency by a certain amount of general education. Americanization classes and edu- cational campaigns have been developed to promote safety and to raise the health level of the working force; cultural EDUCATION 99 classes have been formed to increase the general grade of intelligence; meetings of executives and workmen are held in order to induce codperation by the discussion of knotty problems; and finally the plant organ is published in order to increase the esprit de corps of the organization and to serve as a further educational medium. English Classes. — Between 1900 and 1914 over ten million male foreigners above fourteen years of age came to the United States. This group has entered American industry. School authorities have to date been unable to teach them English and have only in a small measure pre- pared them for citizenship. Realizing these facts, many employers have undertaken to teach English to foreign-born employes. A knowledge of English on the part of the em- ployes is of obvious advantage to employers, as the follow- ing example will illustrate. The Ford Motor Company, in two years’ time after non-English-speaking employes were compelled to attend English classes, attributed a 54 per cent reduction in accidents to the fact that the men could read the safety signs and understand orders and instruction.“ More- over, the inability to understand the language seriously affects the efficiency of the worker. The factory record of thirty-five foreign workers with Joseph and Feiss Company who could not speak English shows that ionly one of the thirty-five had reached the efficiency of the best in his line of work, eight were below average in efficiency, and twenty- six were the least efficient in their respective operations.‘ Solvay Americanization Plan.—In planning English classes, employers should study the needs and the facilities of the community. The Solvay Company of Syracuse, half of whose employes are non-English-speaking, holds classes directly after working hours; attendance is compul- sory, and one half the regular wage rate is paid. All un- excused absences are investigated. The teachers are provided by the public school authorities. In order to 100 THE HUMAN FACTOR IN INDUSTRY specialize the instruction an attempt is made to acquaint pupils with the conditions in industry by trips through the plant, on which production problems are explained. The development of a special textbook for these classes based on the necessary vocational vocabulary is the ultimate aim.“ Many corporations now require all new employes to attend and graduate from English classes. In the Joseph and Feiss Company, teachers and textbooks are furnished by the Board of Education of Cleveland. The Ford English School is manned by teachers from among the employes themselves who volunteer for this work. The course consists of seventy- two lessons, taught in thirty-six weeks, for two hours a day, twice a week. For the Fore River Shipbuilding Company, the North American League provides English teachers,*® while the Pennsylvania Railroad employs its own instructors. Compulsory Attendance at Classes with Pay, Best Plan. — The plan of paying the individual for attendance is prob- ably the most satisfactory method. The class is usually held directly before or after work hours and the pay based on the regular wage. This method compels every non-Eng- lish-speaking employe to attend the classes with pay, so that no one will escape instruction and remain an indus- trial hazard and a needlessly inefficient worker.” Instruction in Other Subjects Often Combined with Eng- lish Classes. — D. E. Sicher and Company, of New York, make the English classes interesting to the employes be- cause the teaching of English is only incidental to stere- opticon lectures, the teaching of dressmaking, drawing, and arithmetic.24_ The Pennsylvania Railroad teaches English by means of stereopticon lectures, with views of the proper and improper ways of doing work.®° The Du Pont Powder Company also teaches English while displaying stereopticon views of safety work. Health and Safety Education. — There is close relation- ship between English classes and safety and health work in EDUCATION 101 many industries. Many companies combine the two under one person; the safety engineer of the Solvay Company, for instance, is director of the Americanization schools. Ex- tensive programs for health and safety education have been undertaken. Safety propaganda has taken the form of meetings in company time or during noon hour, lectures often accompanied by moving pictures, bulletins posted in conspicuous places and often illustrated by graphic draw- ings, material printed in the plant organ, safety contests and safety committees which work up new forms of arous- ing and maintaining interest in the importance of “ safety first.”” Health education, usually directed by the medical department, takes much the same form as the safety work. Lectures on hygiene, meetings illustrated by charts and pictures, health pamphlets, and articles in the company paper are among the main features. The details of education in safety and health are given in the chapters on ‘‘ Working Conditions’ and “ Medical Care.” Cultural Classes. Company Cultural Classes. — Classes in literature, current events, general information, personal hygiene, drawing, sewing, music, domestic science, and other subjects not related to the day’s work may be considered cultural classes. In many instances these classes are under the auspices of a recreational club or association within the industry, as for instance the Wanamaker Women’s League, which conducts domestic science classes open to all members of the league, or the National Cash Register Club, which includes in its curriculum courses on salesmanship, adver- tising, business-letter writing, shop mathematics, public speaking, mechanical drawing, free-hand drawing, book- keeping, and printing.*! Where these classes are not organ- ized under an employes’ club the company often super- vises them. The John Wanamaker Commercial Institute offers instruction in academic and general commercial work, music, ethics, and physical training in evening sessions for 102 THE HUMAN FACTOR IN INDUSTRY boys and girls, held twice a week. The Metropolitan Life Insurance Company holds sewing and millinery classes daily at 4.45 p.m. just after closing time, for an hour. In 1918 forty employes were registered in the millinery classes and fifty in the sewing classes. Evening classes in the Bournville Works, England, provide instruction in art, needlework, cookery, and laundry-work, hygiene, physiology, home dressmaking, sick nursing, and care of infants, English literature, and arithmetic. In this concern, moreover, evening classes in general academic work as a means of broadening general education are compulsory for both girls and boys, the latter choosing between a general commercial and an industrial course.™ Cultural Classes Outside of Industry. — The many pri- vate social agencies, such as the Y. M. C. A. and the Y. W. C. A., for example, which offer evening classes of this type will eventually be in the same position as employers’ activities. To an increasing extent, public authorities are displacing employers and private agencies in this field. It is rather the function of a board of education to furnish classes of this kind than of industry. Many of the public high schools and even elementary schools as well provide night courses. The regular night schools are beginning to offer full schedules, including domestic science, manual training, and other cultural classes. But employers can be of real service to their employes in this connection by putting them in touch with the facilities provided by outside agencies. The Western Electric Company does this through an In- formation Bureau established in the Hawthorne Club rooms. The employes are given information and advice in regard to the courses of study in the outside night schools.?” Educational Program and Garment Workers Union. — Again, labor union activities may displace the employer in the field of cultural education. The beginnings have been made by the International Garment Workers Union EDUCATION 103 in a number of cities. They have codperated with boards of education and opened courses in literature, English, sociology, and social problems free to all the members of the union. Tri-weekly classes are held in the public school and qualified teachers are furnished by the educational authori- ties. Continuation Schools. — An interesting phase of cultural classes is the so-called continuation schools, which aim to give children between the ages of fourteen and sixteen years, who are regularly employed in industry, an opportunity to increase their general education. In five States — Wisconsin, New York, Massachusetts, Michigan, and Pennsylvania, these children attend continuation schools for a minimum time of four hours each week in the employers’ time. In some cases the classes are held in rooms provided and equipped by the employer; in others, the children go to classes in the public school buildings; but in all cases the teachers are employed and assigned to their work by the Board of Edu- cation. The industrial school for which Germany is famous is strictly a continuation school. It is used to continue the general education of the child who either is forced or wishes to go into industry as soon as legally permitted to do so and before the elementary education has been completed. It is, therefore, at best a compromise and a forecast of a higher age limit within which full time school attendance will be re- quired. In Boston the attempt is made, however, to have these schools function as vocational schools trying the pupil out in various processes and coédrdinating the school work with his work in industry. In the last analysis the time for training allowed in the continuation school is too meager to make possible startling results, so that for those compelled to enter industry but capable of absorbing a higher vocational training, the part-time school will probably supersede the continuation school. 104 THE HUMAN FACTOR IN INDUSTRY Libraries and Magazines. — Another method of pro- viding employes with the opportunity of widening their intellectual horizon is the establishment of libraries in in- dustrial plants. Occasionally it is the public library which establishes a branch in the factory, but frequently the com- pany buys its own books. The library of the Metropolitan Life Insurance Company is a branch of the New York Pub- lic Library, but in addition has some 2000 volumes of its own on general subjects as well as an insurance reference library of over 20,000 volumes. The circulation among 6000 employes is at the rate of 200 volumes a day. The National Cash Register Company outlines suggested courses of reading; 25 per cent of the 1100 men employed and 42 per cent of the 200 women are members of the library.** The libraries in the reading rooms of the Santa Fe Rail- road contain 18,500 volumes and have a daily circulation among 8500 employes.°® Magazines and newspapers are frequently provided in the reading and rest rooms, and in clubhouses. The character of the employes determines the kinds of magazines desired. Companies that employ large numbers of foreign-born workers frequently have newspapers in foreign languages to meet the demands of this group. The American Rolling Mill at Middletown, Ohio, especially, makes a point of doing this in its reading room for foreign workmen.*” Personnel Meetings. — Besides educating the individual employe, the employer has come to realize the truth of the old saying that two heads are better than one and that valuable educational results come from meetings held be- tween workmen or executives for the discussion of common problems. The Tuesday morning meetings of the executives in the different departments of the Burroughs Adding Ma- chine Company resulted in the installment of an entirely new system in the advance mailing department of the con- cern. The Goodyear Tire and Rubber Company has EDUCATION 105 successful tri-weekly meetings of foremen during the last hour of the day. These meetings are for the discussion of topics of special interest to foremen, to the safety and to the personnel departments. The head of the employment de- partment attends all meetings. To add new interests speakers are occasionally introduced to talk on general subjects. The Employes’ Engineering Club of the Greenfield Tap and Die Corporation represents another method of edu- cating the employes by group discussion. The full details of the organization of this club are given under the section on educational clubs in the chapter on “ Recreation.” The educational benefit alone derived from employes’ meetings, in whatever form they are organized, would seem to justify their development. Plant Organ. — There is an increasing number of plants and corporations that are publishing magazines and news- papers. The “ house organ,” concerned with sales methods need not be discussed here. The “ plant organ,’’ whose object is to “sell” the plant to the workers, is of interest in this connection.®* Its aim is to convey to the mass of workers from president down to water carrier the spirit of the or- ganization.°° It is used to emphasize to the employes the importance of their individual effort, besides imbuing them with the spirit of codperation. The plant organ also serves as an educational medium. It prints necessary informa- tion on technical subjects of special interest to the reader, and safety and health propaganda. An editorial state- ment in one of these papers expresses the purpose of the plant organ to be the promotion of codperation between employer and employe, and the strengthening of the loyalty of the employes to the company and to each other.™ Typical Issue of Plant Organ. — An analysis of a good shop paper, the Western Electric News, published by the Western Electric Company, will perhaps indicate the usual contents and approach. The material of a typical number 106 THE HUMAN FACTOR IN INDUSTRY may be divided in general into two groups — articles of general educational interest and news distinctly relating to plant activities. In the first group belong an article on the economic situation after the war by the president of the company ; one on the newest safety devices introduced into the Hawthorne works, illustrated by cuts of machines in operation; and an account of a trip by the head of a depart- ment through South America, enlivened by snapshots of interesting places. The rest of the material throughout the paper, with the exception of general suggestions for self- improvement and jokes and cartoons, belongs in the second group. A detailed description of the annual field day, ac- companied by photographs and cartoons of competitors, reports of club activities and other social affairs not only in the Hawthorne plant but in branch offices, form the major part of the news. The write-up of the Annual Products Show at the Hawthorne works is accompanied by pictures of the most important exhibits. This idea of frequent illustrations either by photographs or drawings is distinctly helpful in securing and maintaining the interest of the reader. Personals are scattered all through the organ. There is a separate column for marriages, several pages devoted to the publication of awards for service; the photographs of the employes qualifying for the twenty or more years of service appear, combined with a short history of their work in the company. The magazine is full of good and clean humor. A special page headed ‘“‘ Editor Egge’s Own Page ” is devoted to jokes and humorous stories, replete with local color. The car- toons are especially amusing, — the drawings of competitors in the events of the field day representing a high type of comic art. There is usually, though not in the case of the issue under discussion, a funny story in the style of Wallace Irwin or “ Mr. Dooley,” based on Western Electric prob- lems and current plant news. EDUCATION 107 But the style and handling of material in this paper are especially suggestive. There is no preaching or moralizing. The problems are discussed in a straightforward, pointed, and humorous manner. ‘‘ Have you a Hateful Habit in your Home?” is the heading for a page filled with a discussion of business habits. One of these which reads, ‘‘ When your telephone rings, always answer ‘Hello.’ There are only about 13,000 other people at Hawthorne with the same name, so the person calling knows at once that he has the proper individual,” gives the manner of handling helpful suggestions. The spirit in this plant organ is good. The paper is free from any paternal tone, and there is an ab- sence of “ playing up” or eulogizing the heads of the con- cern. One feels that the organ is edited directly for its readers with their coéperation and not at them. Special Points Worth Mentioning. — Articles which en- able the worker to understand the work of different depart- ments and the coérdination of his department with the unit as a whole have a definite place, — a series of articles in “‘ The Home Office ’’ of the Metropolitan Life Insurance Company may be mentioned in this connection. The first was on mail handling, describing in detail the mail delivery within the building, followed by others on different departments. Organization charts of departments are frequently used. Histories of the company and of various processes are help- ful and of particular value on anniversaries or special occasions. Aids in education are published in the Mirror, plant organ of the Charles William stores. This reviews a series of business books selected as bearing directly on the problems of the concern, and also publishes articles on Americanization of interest to those learning to master the English language.” Educational Material. — The plant organ is an ideal medium for the education of employes in matters of health and in safety. In the latter connection, the publication 108 THE HUMAN FACTOR IN INDUSTRY of actual photographs and cartoons is especially valuable should there be a foreign or illiterate group.°° The reprint of an article on venereal diseases by the War Department Commission on Training Camp Activities in one paper was excellent.5® The General Chemical Bulletin of the General Chemical Company conducts a special Health and Hygiene Department which includes any topic on this subject, from the way of detecting tuberculosis to the hints for a properly balanced diet. Health is an important topic, and material which makes it vital has its place in a shop paper. Advertising Columns. — The paper must be interesting, but it can also be helpful to employes. The Goodyear Tire and Rubber Company started a “ getting acquainted ” campaign.* Lost and Found and For Sale columns appear in a number of shop organs. The Republic Motor Truck Company has worked this out well. At the head of their “want ad” column is printed, “‘ There will be no charge for these, but on account of limited space we will publish them two times only, unless notified to continue.”’ Inspirational Material.— The “ inspirational’ material appearing in plant papers is of two kinds — (a) that which urges employes to forge ahead by stirring their ambitions, and (b) that which praises the ‘‘ good old faithful employe.” An example of the former is a cartoon of a man carving him- self out of a block of marble, printed in one plant paper and immediately copied in many others. The latter is il- lustrated by the shop paper of the Greenfield Tap and Die Company, which prints in each issue a biography of one worker who has been in the employ of the concern for a long time. The column is headed, ‘‘ These men are our old guard. They are the backbone of industry.” Reporters in Plant Collect Plant News. — Real plant news, including items on special activities, the various services provided for the employes, and tactful personals are im- portant ingredients of a plant paper if they can be made EDUCATION 109 interesting to a sufficiently large number of employes. The plan of making different workers reporters in the various departments of the concern is one of the ways of getting hold of real plant news. In the Western Clock Company a foreman of each department appoints a worker to gather news for three months. At the end of that time he is thanked officially by the editor.* Form and Cost. — There is a great variety in the form and size of plant organs. Some papers are full blanket sheets, others are of a size to be put into a coat pocket. The con- venient size is that of five by eight inches. Good printing is an invaluable asset. Calendered paper should be used. Make-up should be carefully considered. Different sizes of type can be used for special headings, thus adding to the attractiveness of the periodical. The cost of printing one plant paper about seven by ten inches in size, published monthly for about 1500 employes and containing a number of cuts and half tones, was given in March, 1919, as averaging about $1000 a year.*! One company publishes a magazine with a circulation of 30,000 copies a month at a cost of about eight cents per copy. Another concern issues 30,000 copies monthly, and finds that the annual costs are divided as follows: Printing . . . . 1... ee «© ~~ «©$16580.63 Distribution . . 2. . 1. 1. we ee 4123.11 Salaries. « & « & ss @ = 6 @ s 6645.00 Cover color plates . . . . . 2... 1870.62 Sketches . . . . . 2. 2. + e© © 963.45 Photographs . ......-.. - 845.63 Outs oak Si a ee AE ee oe 1785.90 Rent and house service . ..... 883.25 Miseellaneous . ..-.-+-.-. - 1560.50 Total . . 2... ee 6 ee es )«6$85258.09 This company also finds that accurate cost recording on its paper helps to keep down expenses and results in greatest efficiency. 110 THE HUMAN FACTOR IN INDUSTRY Frequency of Publication and Distribution. — Most plant organs are monthly publications, as editors seem to find it hard to get out weekly issues. Moreover, it may be questionable whether with more frequent issues the effect- iveness may not be decreased. Special editions on subjects of importance are of value to maintain interest. The B. F. Goodrich Company published a special fire prevention is- sue. Distribution should receive careful consideration. In many instances the paper is given out in the various de- partments of the plant. Sometimes it is circulated at the gates. In other cases notices are posted stating that a new edition is ready and may be had on request. It is impor- tant that the distribution should be at the end of the day, so that the publication will be taken home and that time will not be lost in the reading and discussing of it during working hours." Editors’ Qualifications. — It is impossible to lay down hard and fast rules for plant organs. Each concern has its own particular problems and type of news. The editor is always the important factor in a plant periodical. A good editor is one who understands the business, knows news values and the newspaper game, is a keen student of human nature, and has full authority in his own field. “Plant Organs are too often edited for the executives or at the em- ployes. They give the impression of exploiting the workers for the benefit of the employers.” *® There must be co- operation between the editor and the readers, so that the magazine may meet all the needs of the workers. The plant organ should not publish material designed to stimu- late the sales force. This is not its function and rightfully belongs in a separate paper. If the shop paper is to be read and read widely it must contain only news of interest to the readers. The ideal paper, too, is democratic in its approach and not paternalistic. CHAPTER V WORKING HOURS Recent Change in Attitude toward Length of Working Day. — The employer of fifty years ago believed that industrial output varied in direct ratio to the length of the working day. Each hour that his factory was working meant increased output. Each hour that saw his factory or shop empty, or his employes idle, meant to him lost production without any compensating reduction in overhead charges. Manufacturers scoffed at Ira Stewart when he agitated the eight-hour working day during and after the Civil War. In the three years following 1915, however, one million and a half workers in over 4000 establishments have been put on the eight-hour day,! nearly three times the total number so employed in 1909.2 Of this number 935,000 gained the eight-hour day during 1917 and the first six months of 1918, and the number is growing daily. Moreover, the half-holiday on Saturday is becoming general, the 44-hour week is the standard in the clothing industry, while some firms have advanced to a five-day week and an eight-hour day through- out the year, a schedule which is also common to depart- ment stores in a number of cities during the summer months. Chief witness to the change in attitude toward the desirable length of the working period, which has taken place in the last few years, is that part of the Treaty of Peace proposed by the Allies in 1919, in which the eight-hour day and forty- eight-hour week, with one complete day’s rest, is accepted as the international standard for all industrially developed countries. 111 112 THE HUMAN FACTOR IN INDUSTRY Reasons for Change in Attitude. — The recent impetus given the shorter hours movement in industry is due to accumulated force from three sources — organized labor, legislation, and a reversal in the attitude of employers toward the relation between hours and output. The threatened strike of the railroad brotherhoods in the United States in 1916, for instance, did much to popularize the eight-hour day, at least as the basis of compensation. Legislation lags somewhat behind organized labor in the regulation of hours. Nevertheless, forty-seven States in the Union have some sort of legislation limiting the hours of labor ;? Federal employes work seven hours; the government war contracts stipulated the eight-hour day, and the National War Labor Board accepted the same working day as the basis of compensation in making its awards in disputes during the war. But we still find various lengths of working periods in use, differing with the industry and the locality. Some employes work 84 hours a week and others only 40, less than half as long. Realization by industry that a long working day does not mean maximum output, in fact that the reverse may be the case, has been in the past and will continue a potent factor in the reduction of hours. In the last analysis the development of the movement for the shorter working day will depend on the scientific data obtained regarding the relation between working hours, fatigue, and output. FatIGguE Fatigue vs. Efficiency. — Fatigue means a ‘‘ diminished capacity for work, which is the result of previous work.’ 4 When body or brain is at work certain vital elements are con- sumed from the cellular tissue and what remains is waste product. If this waste product accumulates too rapidly to be burned up by the oxygen carried in the blood or other- wise eliminated, the system becomes clogged and poisoned. WORKING HOURS 113 Rest is necessary to make the body again effective. If the strain has been too great or if the rest is insufficient, some of the poison remains in the body. The effects are then cumulative and the individual suffers permanent and pro- gressive physical deterioration. Thus fatigue affects work- ing efficiency at first, and later health itself.* Causes of Fatigue. — Effort of any kind results in the de- velopment of the poisons of fatigue. Machine production, however, presents a series of special factors contributing to fatigue. Although the length and intensity of activity are always the predominating factors, fatigue may be hastened or retarded by the conditions surrounding the activity and by the nature of the work and the type of worker. ‘The problems of industrial fatigue are primarily and almost wholly problems of fatigue in the nervous system and of its direct and indirect effects.”> It is for this reason that the physical effort demanded of the worker is often of less im- portance than the speed, monotony, or fixity of posture in- volved in the performance of his task. Prolonged hours, work done at unusual times, such as overtime, night, or Sunday work, frequently produce an amount of fatigue entirely disproportionate to the effort expended or the quantity of output produced. Conditions of work which in- clude poor lighting or ventilation, noise or floor vibrations, overcrowding or unsanitary conditions, hasten fatigue and may cause it even where hours are short and work light and varied. These contributing factors must not be overlooked in analyzing the causes of fatigue in modern industry. Causes Inherent in Machine Production. — Some of these factors which cause the poisonous fatigue toxins to accu- mulate more rapidly than they can be thrown off are inseparable from machine production. Speed and the * The existence of fatigue poisons and toxins is the hypothesis upon which recent scientific investigations of fatigue are based, although their existence is not yet proved. Ir 114 THE HUMAN FACTOR IN INDUSTRY monotonous repetition of the same operation cannot be easily eliminated in the making of hinges, for instance, where a woman takes a half formed hinge and places it in the bend- ing machine 50 times a minute or 30,000 times in a ten- hour day; or in cutting out the tops of tin cans, when the lever of a foot press is worked 40 times a minute; or in a garment factory where one girl has to watch 12 jumping needles of a power machine at one time.6 The monotony of such operations is typical of countless machine processes. Even where the process is not complicated enough to involve strained attention, if the speed is regulated by the machine, or if the system of wages spurs to a dangerous speeding-up, extreme lassitude and loss of effort-power in the worker are usually the result. The fatiguing effect of such forms of work can be corrected in part by transferring the workers from one operation to another, eliminating waste motion, sub- stituting electrical control for hand or foot pressure, carefully selecting the best adapted worker, changing piece wages to time wages, providing adjustable seats and foot rests and all sanitary conveniences, and installing the best lighting, heating and ventilating systems. With monotonous work it is the length of the working hours and the frequency of the rest period which count in the reduction of undue fatigue. MEASURES OF FATIGUE Various Fatigue Tests. — There are various ways of test- ing the relation between fatigue and productivity and be- tween working hours and fatigue. Records of output, the amount of machine power used, spoiled work, accidents, lost time, sickness and laboratory tests have all been utilized. Amount of Output. — The daily amount of output for com- paratively long periods gives the clearest picture of the effect of any change in the length of the working period on the efficiency of the workers. In making comparisons, however, WORKING HOURS 115 variations in the supply of power or raw materials, labor turnover, the amount of time wasted involuntarily, and changes in work incentives and in methods of management must all be considered. Accident Schedule. — The schedule of accidents also gives a surprisingly accurate measurement of the progress of fatigue. The Federation of Master Cotton Spinners’ Associations reported that out of 1362 accidents occurring in that industry, only 75 were not caused by fatigue.” Similar conclusions have been reached by the various state com- missions that have studied industrial accidents in this country. If the number of accidents due to causes other than the physical condition of the workers be assumed to be a constant, then the hourly, daily and seasonal variations in accidents may be attributed to the decrease in the workers’ attentive powers, or in his sensitivity and speed of reaction. The greatest difficulty in using accidents as a measure of fatigue will be the changing speed of production. The greater the output the more frequently does the operator encounter danger in the manipulation of the machinery. Spoiled Work. — Spoiled work, like accidents, results from weakened muscular control, inattention, bad judg- ‘ment and memory, and is therefore usually traceable directly to fatigue. This method of measuring fatigue has unfor- tunately been ignored in the recent scientific studies of industrial fatigue. Sickness and Lost-Time Records. — Sickness and _ lost- time records are next in value in measuring fatigue. The proportion of lost time due to sickness and extreme fatigue is frequently underestimated and that due to mere slack- ness overestimated. This is true even where doctors’ absence excuses are accepted, because the worker is often “too tired” to go to work and not sick enough to see a doctor. The very “slackness” of which employers com- plain has probably served as a health safeguard, which has 116 THE HUMAN FACTOR IN INDUSTRY prevented actual sickness and has been made necessary to the employe because of long hours. The British Association for the Advancement of Science, in their investigation of industrial fatigue, found sufficient evidence of a close relation between the curves of lost time and of sickness to justify their reliance on both in tracing the progress of fatigue. Laboratory Tests. — Laboratory tests of industrial fatigue, showing the worker’s relative acuity of hearing and vision at the beginning and end of the work period have been applied most successfully by Professor Kent, working for the British Home Office. These are still experimental, but as time goes on refined physiological and psychological tests will probably be called into general use to determine the desirable length of work and rest periods for various types of work. Their application involves certain difficulties, however. The tested worker will always be curious as to the results of the experiment, and therefore the laboratory experiment will not reproduce the normal state of mind during work or normal working conditions. For the present, the output, accident and lost-time rates give us reasonably accurate pictures of fatigue and its cost and its relation to the work period. EcoNoMy OF THE SHORTER WoRKING Day Early Recognition of this Economy. — Wherever careful records have been kept, shorter hours have demonstrated their value in increased efficiency. In 1816, Robert Owen testified to a Parliamentary Committee investigating the “State of the Children Employed in the Manufactories of the United Kingdom,” that since reducing the hours from 11% to 103 a day, he had lost not more than one farthing in twenty pence in the first three months, and that he was confident that before the year was over this slight discrepancy would be overcome. The change had been WORKING HOURS 117 made without any alteration or speeding up of the machinery, and the increased output per operative per hour came solely — from saving breakage, from the superior attention of the people to all their operations, from not losing a moment when the work commences or when it ceases, and from the individuals in the pre- vious process paying much more attention to the preparatory stages of the manufacture. And these improvements resulted in turn from — the increased strength and activity and improved spirits of the individuals, in consequence of being employed a shorter time in the day.’ With the modern specialization of labor and the increased use of machinery, fatigue would seem to have comparatively small effect on output. The motions required of the worker are so mechanical and involve so little effort that in some work an operator performs his function adequately when apparently half asleep. But the following quotation from a report of the British Health of Munitions Workers Com- mittee indicates the danger of such a conclusion: Cursory observation of the youths boring top caps would suggest that by no possibility could they increase their hourly output, how- ever short their hours of work, but the data adduced show that this view is erroneous, and that a more persistent and continuous application to their machines could effect an improvement of 29 per cent or more.°® Modern Evidence of this Economy. — Modern evidence of the superior productivity of the nine-hour over the ten- hour day and the eight-hour over the nine-hour day, is fast accumulating. All such evidence, however, varies with the industry, the process and the individual workers concerned. Output. — The experiment in reducing hours in the Zeiss optical goods factory in Jena, Germany, is well known. In 1899 hours were reduced from nine to eight, while the out- put per hour increased 16 per cent, and the total output, 118 THE HUMAN FACTOR IN INDUSTRY 3 per cent, an equivalent of ten days’ extra work during the year for each man.!° In December, 1916, Fayette R. Plumb, Inc., reduced their working week from 57% to 524 hours, and at the same time raised their wage rates. The weekly production in one of the worst departments increased 18.4 per cent and in the entire plant, 10.0 per cent." A shoe company, having over 4000 employes, 95 per cent of whom were paid a stand- ardized piecework wage, without making any changes in methods of production, in management, or in machinery, obtained the following results by reducing their hours from 55 a week to 52: Propuctivity Unit per Day PER EmpLoye Basep oN Pairs SHIPPED October and November, 1916 (Working 55 hours) . . os « a) a 8.99 December, 1916, and dataey: 1917 (Working 52 hours). . . . . .. . . 9.00 February and March, 1917 (Working 52 hours) . . . . .... . 9.02 The Cleveland Hardware Company in 1915, instead of adding overtime during the busy season, continued their usual nine-hour schedule and, to the surprise of men and foreman, that year was the largest productive one in their history. In the next busy season, instead of working overtime, hours were reduced to eight, and still production increased. In the winter of 1916-1917, work accumulated during the installation of new machinery and the men vol- unteered to clear it up by working temporarily in two shifts of six hours each. Each team turned out almost as much as they had before in eight hours. The men later asked to return to the eight-hour schedule, fearing that the slight decrease in productivity and in their piecework wages would not be overcome.? We cannot know whether the good effects of the six-hour day would have finally resulted in WORKING HOURS 119 equal or improved productivity, but the experiment certainly indicated that somewhat less than eight hours was the maxi- mum productive working day for the kind of work involved. Other interesting evidence of the advantages of shortened working hours comes from the Solvay Process Company of Syracuse. In 1892 they installed three eight-hour shifts in place of two previous shifts of eleven and thirteen hours. In 1909 the president of the company said that the initial increased cost per unit of production was more than over- come within a year’s time.“ Mention has been made of the successful experiment of Joseph and Feiss Company in establishing a 40-hour week. The Ford Motor Company and the Commonwealth Steel Company also afford examples of the economic value of the shortened working day. The National Industrial Conference Board concluded a study of 413 metal manufacturing establishments which had reduced hours between 1917 and 1919 with the state- ment that 4 — (1) A 50-hour week has proved efficient and practicable in a large number of metal manufacturing establishments. (2) A 48-hour week has proved practicable in a considerable number of establishments. The reports of the British Health of Munitions Workers Committee contain many detailed data on the relation between output and hours. Thus, 100 women turning fuse bodies, a delicate process performed standing and de- manding close attention, give the following record.’ With RB Woe M mh Acruay Hours} Hours or UATE OREM ULTIS PER WEEK | BROKEN TIME Dues = an Reuay oe OvurruT 6 weeks average 68.2 6.6 100 6820 8 weeks average 59.7 4.6 123 7343 120 THE HUMAN FACTOR IN INDUSTRY a reduction of 8.5 hours a week, lost time was decreased 31 per cent, relative output increased 23 per cent, and the total output increased 8 per cent. In considering these hours it should be borne in mind that they refer to early days of the war when England sought to secure maximum output of munitions by lengthening the work-day. The lowered output per worker in the second year of the war —the fact that long hours had failed to maintain production even where the workers were stimu- lated by patriotic zeal, led to the appointment of the com- mittee. It was found, moreover, that hourly output was less even at the beginning of each working period, a fact accounted for by the anxiety of the employes to save them- selves from the strain of the long work day. A group of twenty-seven men on the heavy work of sizing fuse bodies, in a reduction of hours from 61.5 to 55.4 a week, increased their hourly output 22 per cent and their total output 10 per cent.® The committee recommended a reduction from the preva- lent week of from seventy to eighty hours and more, to be- tween fifty-six and seventy hours, varying with the type of work and the age and sex of the worker. But even these shorter hours were held to be too long for times of peace and could be applied only to the strongest workers during the emergency of war. Thecommittee was avowedly taking a “short and not a long view.’”’ It was interested solely in maximum output of munitions during the war, and its re- search therefore does not indicate the hours conducive to maximum productivity over a period of years, but it in- dicates nevertheless the relation between hours and out- put. Accidents. — Further testimony to the value of the shorter work day are the accident and health records. In one English munitions factory, in the autumn of 1914, when the hours were nine a day, an average of 100 first-aid WORKING HOURS 121 dressings per 1000 employed were made each month, while in the autumn of 1915, when hours had been raised to eleven a day, the average rose to 292.5 The firm held the more thorough organization of first-aid treatment only partly responsible for this 192 per cent increase. Unfortunately, American accident statistics do not show the usual number of hours worked by the person injured. Records of individ- ual plants do throw light on the subject, but are not available for publication. Sickness. — Long hours are also conducive to sickness and absenteeism. When the Solvay Process Company of Syracuse introduced three shifts instead of two, the time lost per man per year gradually fell from 74 days to 54 days.# The immediate result of long hours, overtime, and night work among one group of British munitions workers was a rise in the percentage of sickness from 2.9 in July, 1914, and 2.4 in December, 1914, to 4.0 in the first quarter of 1915. During the same period the accident rate also increased. In one department employing nearly 1000 men, the sickness rate reached 8 per cent. The medical officer of the works attributed this increase in part to the introduction of new and inexperienced employes, but held the fifteen-hour day largely responsible. In another large factory the sickness rate had risen to 4 per cent and was still rising, while in a third it had reached 7 per cent.® The relation between health and short hours is indi- cated by the record of the sick benefit fund of the Insti- tute Solvay of Belgium. Mr. Fromont introduced the eight-hour day in place of the former twelve-hour day in 1899, because he himself had noticed the exhausted condition of his employes. From a deficit of 700 francs in 1889 the fund showed a steadily growing balance until in 1904, with practically the same number of members, there was a balance of some 3300 francs. There were no- ticeable drops in the fund balance for the years 1895, 1900, 122 THE HUMAN FACTOR IN INDUSTRY and 1902 due to unusual and serious epidemics of influ- enza./® A similar striking experience is recorded by the Engis Chemical Works near Liége. The management became alarmed because the company’s sick benefit fund was being constantly depleted, and tried the experiment of introducing three eight-hour shifts for ten-hour shifts, believing that long hours were partly responsible for the high sickness rate. The output and the piecework earnings remained the same, the hourly output and earnings increasing about 33 per cent. Instead of a continuous deficit the sick benefit accumu- lated a growing surplus.’ NicHt Work Night Work in Disfavor. — Although methods of illumina- tion have improved markedly in the past few years, there is comparatively little night work done. Even the offer of bonuses and special privileges does not ordinarily bring forth an adequate number of applicants. Most industries report difficulty in filling their night-shifts. Not only is this true, but there is a growing universal opposition to night work, especially for women, as a menace to national health. Ata conference called by the Swiss Federal Council in Berne, 1916, an international agreement to prohibit night work for women was signed by fourteen European countries, and eight of the States of this country have since passed corre- sponding legislation..7 Some night work, notably in public utilities and in the handling of food, will probably always be necessary. Its use, however, should be strictly limited and the amount of night work reduced to a minimum. Difficulties of Night Work. — The fundamental objection to night work is that sound restful sleep, which is essential to physical efficiency, cannot be secured during the day. The activity of other members of the family and street noises make this almost impossible. Night work interferes WORKING HOURS 123 with normal human relationships. It is of course conceivable that a complete inversion of day and night habits could be made. This was accomplished successfully by the Danish Arctic Expedition of 1906-1908, to the extent that even the ordinary temperature cycle of the body, high in the late afternoon, low in the early morning, accommodated itself to the change.'® But the night worker is tempted to burn the candle at both ends, playing by day and working by night, snatching a little sleep intermittently through the day and remaining drowsily awake through the night. Some of the injurious effects are not apparent for a long period, but there is abundant evidence, nevertheless, that night work is uneconomical, industrially as well as socially. Output. — Night work means not only physically inef- ficient workers, but artificial lighting makes the work diffi- cult, supervision is usually unsatisfactory and the machinery suffers from incessant use and from the change of workers. The British Committee found a group of nine night-shift workmen in a munitions factory whose output was 14 per cent less, over a period of four weeks, than that of nine day-shift workmen engaged in the same process in the same factory ; twelve women employed on continuous night work for twelve weeks, who during that time gave a mean output 11 per cent below that of a ten-week period of alternating night work; and many similar instances. There were also signs of a progressive deterioration in efficiency among night workers as compared with day workers. The Com- mittee concluded that a continuous night-shift gave a definitely less output than a continuous day-shift. They failed to obtain evidence that the greater output of the continuous day-shift balanced this inferiority. Therefore where night work was necessary, the discontinuous system was found more productive than the continuous one."® Accidents. — Accidents are of comparatively little value in measuring the effects of night work. Those chosen for 124 THE HUMAN FACTOR IN INDUSTRY night work are usually of superior physique, and at night there is less crowding and less traffic in the factory, due to the shipping of materials and supplies. The accident fre- quency has, therefore, been found to be slightly less by night than by day. Sickness. — Sickness statistics are more illuminating. The factory reports of Alsace-Lorraine cite the case of a cotton mill which introduced a permanent, night-work shift in 1889 and found that in one year, for every 1000 women in the day-shift there were 510 cases of illness and 5280 days lost, while among the day and night-shift force the cases of illness were 625 and the days lost, 9130.19 The Finnish Senate in 1909 ordered an inves- tigation of women night workers and found that among 2659 engaged in work of various kinds, 35.2 per cent suffered from general nervous weakness. Only 41.4 per cent managed to sleep much more than five hours a day, while 34.1 per cent slept less than that.?° Three eight-hour shifts, in place of two shifts, increase output by benefiting the workers physically and by reducing the time during which machinery must stand idle while the workers have their meals. Professor Kent’s tests in 1916 substantiated these con- clusions, and showed in addition that because of the time necessary for the adjustment of bodily temperatures and habits, a weekly shift from day to night work is too fre- quent. He discovered that while fatigue always developed more quickly by night than by day, the development dur- ing the night was less at the end than at the beginning of the week’s work. He suggested that a monthly shift is more adapted to the need of the workers.#4 WORKING HOURS 125 OVERTIME Overtime Expensive. — Of the state laws in this country regulating hours of work, only one third permit overtime for any reason, and these only to a limited extent in an emer- gency or for special reasons.17 The objections to all over- time work made by the British Committee were that (1) the severe strain on the management, executive staff, foremen and workers adversely affected quantity and quality in out- put, and that (2) it entailed a large amount of lost time due largely to sickness and partly to slackness on the employe’s part in normal working hours in order to prolong the neces- sary overtime with its extra pay. In one department of a British munitions factory, where 180 unusually keen and steady men were at work, averaging 39 years of age, con- tinuous overtime raised the percentage ratio of lost time from 3.1 of the gross normal hours in June, 1915, to 8.4 in June, 1916. In another department where over 300 men were on heavy work the same ratio increased from 3.2 in June, 1915, to 6.1 in June, 1916.18 And, vice versa, a reduction in over- time has been found to have a disproportionate effect on the reduction of lost time. Restrictions on Use of Overtime. — The executive of a large American shoe company employing 4000 men has declared overtime to be advisable only (1) to offset breaks in continuous production, (2) where only a small number of employes are affected, and (3) for short periods. In general all of the objections made to the regular.long work- ing day may be made to overtime with the additional fact to consider, that overtime means extra pay. Sunpay WorK Sunday Work as Expensive as Other Overtime. — The difficulties involved in Sunday work are the same as with other overtime work. Supervision is less efficient, higher 126 THE HUMAN FACTOR IN INDUSTRY rates of pay increase the cost of running the plant, and work outside of the customary hours of work in the community leads to ‘ soldiering ”’ and loafing, because the worker is in a different frame of mind than at ordinary times. He feels in a holiday mood and is not inclined to take his work as seriously. Moreover, though attendance is apt to be good on Sundays, when there is extra compensation, it results in bad attendance records during the week.'® Importance of One Day’s Rest a Week. — English ex- perience led the British Committee to conclude that one day’s rest in seven, preferably on Sunday, was more essential in maintaining the health and morale of the working force than any shortening of the regular work day.'® Output Lowered. — Working on Sunday at a rifle car- tridge-making factory was shown to affect adversely the rate of output. The weekly output after a Sunday holiday was compared to that in the weeks before and after, when Sunday was worked in full. The results showed a higher rate per machine per hour in the week following a Sunday holiday.16 Sickness Increased. — Another striking example of the deleterious effect of Sunday work is given in the case of a factory where, in the spring, Sunday overtime was the rule, and at one time 22 per cent of the men were ill. In August, when Sunday work was greatly reduced, although week-day overtime continued heavy, only a trifle over 4 per cent were ill. The spring had not been an abnormally unhealthy one, so this great reduction could be attributed only in part to the season.!8 THE WorRKING PERIOD Shorter Work Day vs. Rest Periods. — There are two opposing tendencies in the shorter hours movement. One is to divide the working day into several parts by inserting rest periods and lengthening the lunch hour, and the other is WORKING HOURS 127 to compress the working day into fewer hours by eliminating rest periods. In some States legislation is beginning to re- quire a forty-five minute or one hour lunch period in certain occupations and for certain classes of workers. On the other hand, as in the case of the Ford Motor Company, substituting three eight-hour shifts for two shifts has meant in many factories that the employes are given time for only a pick-up sandwich lunch. Lord Leverhulme, owner of the Port Sunlight Soap Works, has recently pronounced him- self in favor of a six-hour work day for all employes, worked in two, three, or four shifts, without interrruption for meals.2 To decide which course to pursue it is necessary to trace the progress of fatigue in the workers during the day and to determine the effect which rest periods have in lessening fatigue. Little Variation in Fatigue during the Year, Week, or Day. — The British Association for the Advancement of Science in 1915 carried out an extensive investigation of the rela- tion between the period of work, fatigue, and accidents.’ They found the universal experience to be that the progress of fatigue varied little between one week of the year and another, between one day of the week and another, or be- tween morning and afternoon. But there was a great difference in the fatigued condition of the worker during the first hour and the third or fourth hour of morning work. This variation repeated itself in the afternoon working period. Reasons for This Absence of Variation.— Vacations are still too negligible a factor in industry to show any effect on the wage earners’ efficiency during the year. The evi- dence of weekly fatigue is confused by marked variations in different localities and countries, due to the different week- end habits of the workers in regard to both drinking and recreation. In American industries there is often a sur- prising drop in efficiency on Monday, which is variously 128 THE HUMAN FACTOR IN INDUSTRY attributed to week-end dissipation, or to a loss of practice in manipulating the tools or machinery, and a non-adjust- ment to the rhythms of work. Moreover, efficiency rises on Saturdays, probably because of the stimulus of anticipating the coming holiday. Thus the Ohio Industrial Commission for 1914 found accidents involving disability for one day or more to occur in different industries as follows: Cqemscrme| marie | Couomne | Cost, | gree | Typo Monday 321 2,268 229 204 177 4,632 Tuesday 269 2,224 214 194 199 4,522 Wednesday 288 2,187 223 165 171 4,388 Thursday 283 2,215 218 184 172 4,436 Friday 279 2,197 224 165 192 4,377 Similar figures are given by German reports. In Belgium, on the contrary, Saturday is the most fatal day of the week, while in England accidents are fewest on Monday. There is surprisingly small evidence of accumulating daily fatigue and decreased efficiency in the afternoon period, which is shown by studies of daily output and fatigue. This is prob- ably due to the fact that the operator becomes more skillful with the practice of work in the preceding hours, and is stimulated to renewed effort by the anticipation of relief from work. Variation in Fatigue during the Work Period as Shown by Output. — The variation of fatigue during the working period is found to produce an efficiency curve rising to a maximum at ten o’clock in the morning and again at three in the afternoon. This common experience is illustrated by the following figures, showing the distribution during the work day of the total output of six typesetters working at piece rates, which was made by the Italian physiologist, WORKING HOURS 129 Pieraccini.4| The number of lines set during each hour was as follows: Hours: 8-9, 9-10, 10-11, 11-12, 12-2, 2-3, 3-4, 4-5 No. of Lines: 121 151 180 125 Lunch 142 124 96 Period Accidents. — Mr. Lescohier found the daily distribution of all industrial accidents in Minnesota in 1910 to show marked increases in accidents at certain hours of the morn- ing and afternoon. These seem to have a definite relation to the fatigue of the workers and to the number of hours that they had been at work. European and other American experience bears out these findings as to the occurrence of accidents.” The British Association found that output during a five- hour working period was small in the first hour, greatest in the second hour and that it decreased steadily after the second hour. Accidents occurred least often in the first hour and more frequently each hour thereafter, until the last hour, when the number of accidents slightly decreased.” Rest Periods as a Preventive of Fatigue. — The only means of preventing the drop in output and the increase in accidents which occur during the latter half of the work period is by forestalling fatigue with regular scientifically established rest periods. At present, rest periods are the exception rather than the rule in American industries, and are granted almost exclusively to women. Growing Popularity of Rest Periods. — In a recent study of conditions in 481 American establishments in a wide variety of industries, 105 were providing rest periods in some departments. In occupations involving great nerv- ous strain, such as that of the telephone operator, or in the monotonous work of the typist, and the ele- vator man, or in the hot work of a foundry man, pauses are more frequent than in ordinary factory work. Rest periods vary in length for different classes of workers. In a K 130 THE HUMAN FACTOR IN INDUSTRY food factory all the women rest fifteen minutes twice a day and bundlers half an hour. In eleven of the factories re- ported, rest was provided by shifting workers from one occupation to another at intervals during the day, but this can be done only where the processes are simple.?® Their Length and Frequency. — Experiment alone can determine the desirable frequency and length of the rest periods to be introduced in the working spell. Taylor found, for instance, that in handling pig-iron, weighing over 92 pounds a pig, a workman should be under load only 43 per cent of his working time to insure maximum efficiency.”® Mr. Gilbreth in his “‘ Fatigue Study ” has given an interest- ing example of the results of proper rest periods. Some girls engaged in folding handkerchiefs were told to pause every sixth minute and at the end of each hour to walk and talk for six minutes. Their posture was varied also by sitting and standing. The result of introducing this sys- tem was that the output was three times the amount of the previous best week’s work.?” Enforcing Rest Periods. — Rest periods, whether several five-minute periods, or one half-hour period, should be regu- larized and enforced and the rest length determined after making a plant survey and time study for each occupation. Pieceworkers may object to enforced rest periods, but if the management guarantees full pay while introducing them, their objections will be easily overcome when they find their out- put has not suffered. Indeed, the primary purpose of these pauses is to raise the efficiency of the worker through reduc- tion of temporary fatigue and prevention of cumulative fatigue. From these studies evidence points to the fact that fatigue accumulates rapidly during the third and fourth hour of work. Therefore, even if the work day were condensed to six hours, fatigue, as a cause of accidents, ill health, and underproduction, would not be eliminated. It is possible, WORKING HOURS 131 however, that the work day could be condensed without danger if the lunch hour were eliminated and brief rest periods retained. This six-hour work day of two, three, or four shifts might therefore accomplish what Lord Leverhulme hopes — increased strength and happiness for the workers, greater stability of labor, increased production and lessened overhead charges. VACATION PERIODS Vacations for the Rank and File. — Related to the prob- lem of working hours is that of vacations. The time has been when a paid vacation in industry was rare, usually limited to the management but extended occasionally to the clerical force as well. Now we find the Bournville Works in England granting to most of its women employes 21 days’ vacation with pay during the year, — 5 days at Christ- mas, 3 days at Easter, 1 day at Whitsuntide, and 12 days at Midsummer. To receive a full summer vacation a new girl time-worker must have been with the company nine months. The fewest holidays any employe can receive are three days at Midsummer and at Christmas. For pieceworkers, the works are closed for ten days in the summer and about five days at Christmas. The men employes are allowed a maxi- mum vacation of 12 days plus a bonus day where the worker is entitled to it.?8 Every employe of the Solvay Process Company who has been with the company one year has one week’s vacation with pay. After two years’ employment the Black Com- pany, manufacturers of cloaks and suits in Cleveland, gives one week’s vacation with pay. Sears, Roebuck and Company, after three years’ service, gives two weeks’ vaca- tion, and before that one week. With Filene’s of Boston, the vacation period is apportioned in accordance with the length of service, with a minimum of one day for each month’s service, and a maximum of two weeks.?? In the Metropoli- ice vy 132 THE HUMAN FACTOR IN INDUSTRY tan Life Insurance Company, every employe in the serv- ice at the beginning of the calendar year receives two weeks’ vacation with full pay, and, if entering the service after January first, but before March first, an employe receives one week. Additional vacations are granted for length of service as follows : %° After 5 yearsofservice . ...... . Iday After 10 years of service ...... . . 38days After 15 years of service . . ... . . . 1 week After 20 years of service . ... . . . . 2 weeks An increasing number of factories shut down during the period of stock-taking, when this can be done during the summer months. This complete shutdown is some- times less discouraging and expensive than arranging vaca- tions for the employes at different times throughout a long period. Annual Vacations Enforced by Unions and Law. — The Unions and state legislation are beginning to enforce annual vacations for the rank and file of employes. In 1915 the Milk Drivers’ Union of Chicago signed an agreement with their employers which provided two weeks’ annual vaca- tion with pay. Some half dozen States provide by law annual vacations for certain classes of workers. Employes of the federal government and of many cities are granted annual vacations of not less than a week, with pay.!” There are no available data as to the value of the vacation period measured in improved output through the year. There is scarcely] need of any. The companies which pro- vide vacations with pay undoubtedly reap the benefit in the loyalty and better health and spirits of their working force. CoNCLUSION Shorter Hours Desirable.— There is every evidence that total as well as hourly output is decreased by a long WORKING HOURS 133 work day, overtime, night work, or long periods of work with insufficient rest periods. We can no longer accept the verdict of an English manufacturer who wrote to the Leeds Intelligencer, in 1830, that. the long twelve-and-a-half or thirteen-hour day worked by children in woolen and worsted mills was ‘‘ rendered a comfort by the regular hours of rising from and retiring to bed.” 1 Experience proves that long hours are neither a comfort to the worker, nor a benefit to the manufacturer or the stockholder. The British Health of Munitions Workers Committee, appointed in 1915, might well have broadened their conclusion as to the desirable length of the work day for women in munitions, to include all workers in all work : 2 Happily, there should be, in the matter of hours of labor for women, little conflict between the interests of the home and the interest of munitions, for the hours which conduce most to a satis- factory home life and to health conduce most to output. Need for Experiment. — It is impossible to make any dogmatic assertions regarding the desirable length of the work day or the work period. It is clear that in the past, employer, employe, and community have alike suffered from a misconception of the relation between the length of the work day and total output. Experiment alone can de- termine the working period conducive to the greatest ef- ficiency in production for each type of work and worker. In every industry and every occupation the length and time of the working day must be adjusted to the nature of the work, the working conditions and the sex and age of the workers involved. It must be remembered, too, that maxi- mum efficiency in production cannot be achieved in a few days, or weeks, or even years. The real result of shorter hours which give employes leisure time for rest, recreation, education, and the building of homes and the improve- ment of them can be measured only after long periods by 134 THE HUMAN FACTOR IN INDUSTRY such indefinite quantities as stability of labor, and health and happiness. Coéperation of Employes Essential to Success of Shorter Hours. — All employers who try to increase production by shortening the working hours would do well to heed the warning of the British Committee : If the proper adaptation to particular kinds of labor of the rela- tion of spells or shifts of work to rest intervals and to holidays is to be determined by appeal to experiment, it will, of course, be an essential condition for success that the workers should co- operate with the employing management. It is not surprising that where employers, following tradition rather than experiment, have disobeyed physiological law in the supposed interests of gain, the workers have themselves fallen very commonly into a tradition of working below their best during their spells of labor. It would be out of place here to touch on the economic and social problems which arise in this connection, but until such solutions are found for them as will bring a hearty codperation between employers and employes, there will be no certain prospect of determining the true physiological methods for getting the best results in modern industrial occupations. CHAPTER VI WORKING CONDITIONS Health, Happiness, and Efficiency of Employes De- pendent on Working Conditions. — The physical environ- ment of employes is a determining factor of health, happi- ness and efficiency. Good ventilation, lighting and sanitary conditions contribute directly to the employe’s physical well-being and the ease with which he can work. Fire protection and accident prevention make his labor power more secure. Attractive surroundings afford relief from the strain of monotonous or fast work. To this end a button factory in Rochester, New York, provides phonograph music intermittently throughout its various departments. In the machine shops where noise prohibits music, potted plants are arranged in convenient places between the ma- chines. Window boxes, vines, trees, and shrubs decorate the exterior of many factory buildings, which are designed as artistically as private suburban homes. Efforts to beau- tify the industrial environment of the employe are, it is true, of less importance than the endeavor to prevent accidents, occupational disease and fire, and to provide adequate ventilation, lighting, and sanitation. Nevertheless, since the employe spends at least one third of his day in the workshop, it is desirable that his surroundings should not only make for efficiency, but stimulate his esthetic and creative faculties. ACCIDENT PREVENTION Growth of Accident Prevention Movement. — No phase of labor maintenance has grown so rapidly as the move- 135 136 THE HUMAN FACTOR IN INDUSTRY ment to prevent industrial accidents. In 1906 the first exhibit of safety appliances in this country was held under the auspices of the New York Institute for Social Service. This led to the organization of the American Museum of Safety (1907). In 1912 a small group of engineers met in Milwaukee and launched the National Safety Council, which has taken the lead in the war against accidents. In four years’ time it included 15,400 representatives from 3293 firms, covering 4,500,000 workmen.1 _ There are a number of reasons for this remarkable interest. Not until recently have United States statistics of accidents in industry and their sequele been available. These have formed the basis of active propaganda and legislative action. Notwithstanding this, it is estimated that 35,000 workmen are still killed annually — one every 12 minutes — and probably 400,000 receive injuries sufficiently serious to cause them to lose time from their work. In Pennsylvania alone in 1916 industrial accidents caused lost time equivalent to 3,025,371 working days and $7,535,059 in wages.” This loss was formerly borne entirely by the injured work- man, occasionally assisted by fellow-workers and the em- ployer. Workmen’s compensation laws enacted in most of the States have divided the loss by charging a percentage to the employer. These laws have not only transferred the cost of accidents from employe to employer, but by requir- ing systematic reporting of accidents have furnished neces- sary data as to their extent and seriousness. These in turn have led to safety campaigns. Possibility of Preventing Accidents. — Experience has shown that at least 50 per cent of the industrial accidents are preventable. Twenty-two of the foremost industrial concerns of the United States report an average reduction of 54 per cent in yearly accidents after the introduc- tion of organized safety work. The International Har- vester Company, the Neenah Paper Company, the Illinois WORKING CONDITIONS 137 Steel Company, and the Milwaukee Coke and Gas Com- pany each reported a reduction of more than 80 per cent. In eighteen months the Port Huron Engine and Thresher Company, in a plant employing between three and four hundred people, reduced accidents 56 per cent and cut down compensation costs from $2864 in 1913-1914 to $1263 in 1914-1915.4 Safety Devices.— To accomplish these results many ingenious safety devices have been developed to protect workmen. Glass hoods catch the fine steel splinters from the emery wheel; goggles cover the metal grinder’s eyes; ““ congress shoes ”’ with steel plated toes protect the molder from a scalding should he spill the hot metal he is carrying ; “safety nets ”’ catch the falling workmen, tools, or materials in construction work; automatically locking doors protect elevator shafts in office building and factory, ete. Importance of Personal Equation in the Reduction of Ac- cidents. — Mechanical appliances play an essential but comparatively small part in accident prevention. By far the larger number of accidents is dependent on the person or persons involved. This has been demonstrated repeatedly by studies of causes of accidents and of methods of pre- venting them. The experience of the Illinois Steel Company, one of the pioneer companies in safety work, has led them to evaluate the different methods of attacking the accident problem. Only 174 per cent of the total reduction in accidents is attributed to the introduction of mechanical appliances, and another 8 per cent to improved lighting and cleanliness. Educating by means of lectures, or bulletins, or instruction while at work, was held accountable for 30 per cent of the reduction and the organization of Safety Committees for 20 per cent. This experience is typical. Necessity of Arousing Workers’ Interest in ‘Safety First.’ — If only 25 per cent of all industrial accidents can be traced directly to unguarded or dangerous machinery 138 THE HUMAN FACTOR IN INDUSTRY and equipment it is obviously necessary to stimulate the interest of the employes in “Safety First.’”” Bonuses to foremen for best departmental records and to workmen for useful safety suggestions have been found to serve the purpose. The Fisk Rubber Company of Chicopee Falls, Mass., reduced accidents 50 per cent in one month by the introduction of safety contests. Safety lectures, especially if accompanied by lantern slides, moving pictures and pictorial bulletins are quick to attract the workman’s attention. The most valuable ones are those issued weekly by the National Safety Council. They are simple, direct, and usually illustrated with photographs or drawings. These are at present used by many concerns. If conspicuously posted and strikingly presented, accident statistics can often be used to advantage. A committee of logging operatives in Wisconsin made effective use of them by posting such rules as the following : 7 Rue 1. Carrying az. The only safe way to carry an ax is with the handle on the shoulder and the head back of the shoulder. Many men who have carried the ax with the head under the arm have stumbled and fallen and have been seriously injured. Two hundred and seventy-one men were injured while handling axes. Rute 5. When a tree starts to fall, get out of danger at once. Look up and watch for falling limbs. Two hundred and eleven men were injured and fifteen men were killed by falling trees and limbs. Employes’ Safety Committees. — No method is so suc- cessful in arousing the workers’ interest and watchfulness as the formation of rotating safety committees. During the first three years of the safety work of the Chicago North- western Railway Company, the men who had served on committees reported 6000 points of danger, and 97 per cent of their suggestions were found practical and adopted.® Methods of organizing the safety work and securing co- operation between the management, the expert adviser, WORKING CONDITIONS 139 and the men, will vary with the size of the plant. The California Industrial Accident Commission has suggested the following organization for plants: ® (1) With less than 50 employes. The manager or superintendent in charge of all safety work should appoint one of his employes to make weekly inspections and to report to him all recommendations in written form. These recommendations with the accident reports should be filed for future reference. (2) With 51 to 500 employes. A safety committee of not less than 3 persons, including the manager, a superintendent, and some other high-grade employe should receive weekly reports from a competent safety inspector. The safety inspector should codperate with a workmen’s committee, which should be a rotating committee, one member being replaced by a new one every month. (3) With 501 to 1000 employes and over. In addition to the general committee a foremen’s committee should be appointed consisting of about 5 foremen. Workmen’s committees should exist in several departments. A full time safety inspector will probably be necessary even where the plant numbers less than 1000 employes and will be essential for the larger plants. Safety Committee Meetings. — The plan proposed by the National Safety Council and successfully adopted by the Port Huron Engine and Thresher Company provides for a Shop Safety Committee composed of one man from each department in addition to the Central Safety Committee and safety inspector. It is important that the foremen have 2, voice in drawing up the safety rules which they are asked to enforce. Every member of the committee fills out a suggestion blank at each weekly meeting. The weekly meetings are held on company time at company expense for the discussion of the previous week’s accident record, and the study of bulletins and safety literature. Every sixty days the company gives the committee a smoker and distributes prizes for the best safety suggestions. 140 THE HUMAN FACTOR IN INDUSTRY It is relatively simple in the initial stages of a safety campaign to arouse the workers’ interest. It is more diffi- cult to retain this interest until the individual has formed the “safety habit.’’ To do this, all conceivable means of popularizing “safety first ’’ are needed. Physical Examinations a Preventive Measure. — One of the most important accident preventives is the prelimi- nary physical examination and periodic reéxamination of all’employes. Fatigue, alcoholism, and disease make the background of a large number of accidents which usually have been attributed to the employer’s negligence. Their detection and correction will bring about a substantial de- crease in the accident rate. Dollars and Cents Value of Safety and Medical Work. — The expense of installing an adequate medical depart- ment along with the centralized employment bureau, which would result in a decreased accident rate through aiding in the careful selection and placement of workers, has been found to be a paying investment. The Avery Company of Peoria, Illinois, found the total expense of maintaining an employment department, an extensive medical depart- ment, a safety inspector, of paying compensation, and of carrying insurance for excessive liability only, to be 28 per cent less than the cost of insurance for full acci- dent compensation coverage if the medical and safety work had been left undone. In 1916 this safety work plus insurance cost $1.80 per $100 pay roll, as opposed to $2.48, which was the insurance rate per $100 pay roll for full coverage.® The Riverside Portland Cement Company of California has found : ! Since selecting our risks, viz., employing only men who are physically sound, . . . not only a great reduction in the manner of accidents but . . . also a greatly increased efficiency in our working forces. WORKING CONDITIONS 141 Americanization Classes. — The problem of safety has many ramifications. No single remedy will accomplish the desired immunity from accidents. The elements which contribute to such immunity often seem remote and intan- gible. Required attendance on company time at Americani- zation classes, for instance, is prerequisite to the safety movement in an industry employing a considerable number of foreign-born workers. With the Ford Motor Company accidents decreased 54 per cent after classes in English were started." Eliminating Child Labor. — Children and young people help to swell the accident list. In eight munitions factories in England the accident rate among the boys (those under 18 years of age) exceeded that among the men over 41 by 50 per cent.2 In the southern cotton mills where the younger workers are employed in relatively non-hazardous occupations, the accident rate for children is more than double that of the employes over 16 years of age.” Decreasing Turnover. — The Westinghouse Electric and Manufacturing Company of Pittsburgh found that 76 per cent of their accidents prior to 1918 were caused by em- ployes who had been with them less than one year.“ This indicates the close relation between accidents and labor turnover, and the value in accident prevention of adminis- tration, which tends to stabilize the working force. It shows clearly the need of instructing the new worker and of teaching him the hazards of his occupation. Every plant will have its individual accident problems dependent on the nature of the work, the conditions of work and the character of its workers. ‘The means of meeting these problems adequately can be discovered only by carefully compiled accident statistics. The proportion of accidents which are due indirectly to poor physical condition, over- work, inadequate wages with the concomitant indifference and lowered vitality of the workers, or directly to ill-guarded 142 THE HUMAN FACTOR IN INDUSTRY machinery or inability to understand English, may be re- vealed in these statistical analyses. PREVENTION OF OCCUPATIONAL DISEASE Prevalence of Industrial Health Hazards. — Nowhere has there been sufficient appreciation of the extent and variety of occupational disease. Dr. Hayhurst, after an extensive study, states that “from one fourth to one third of the medical afflictions of trades persons are due in the whole or in great part, to industrial health hazards.” * 1 Processes Grouped according to Hazards.—JIn his study of Ohio industries Dr. Hayhurst classifies the haz- ardous industries as: (1) Those using poisons as a chief hazard. (2) Dusty industries. (3) Those in which fatigue and inactivity are the chief hazards. (4) Those in which heat, cold, moisture, or dampness predomi- nate. (5) Those in which there is more than usual liability to con- tracting communicable diseases. (6) Industries having miscellaneous hazards. not included above. Of these the largest class is probably the dusty industries. It has been estimated that approximately 5,600,000, or 17 per cent of American wage earners of both sexes, work under con- ditions more or less injurious to health because of atmos- pheric impurities caused by dust, fumes, or gases. Professor Winslow has listed some 54 trades in which fine particles of bone, hair, metal, and mineral or vegetable materials * The study summarizes (1) United States Census Mortality Statistics of Occupations; (2) 65,000 dispensary records and many hundreds of cases personally seen during a two-year period at Rush Medical College (Central Free Dispensary); and (3) the medical portion of 27,887 cases in which the patient received treatment in Cook County Hospital during the year 1913. WORKING CONDITIONS 143 form a dust which it is more or less dangerous to breathe.1¢ This by no means covers all the industries, processes, and occupations which give rise to dust; almost every manu- facturing process may expose workers to this hazard unless precautions are taken. Preventive Measures. — A large amount of the unneces- sary sicknesses and premature deaths may be prevented with comparatively little effort or cost on the part of the em- ployer. Many occupational diseases may be prevented by: (1) Securing the scientific ventilation of workrooms, especially by the installation of efficient local exhausts which remove dust at points of géneration. In some industries, such as in smelting and refining, fountain-pen-point manufacturing, jewelry, etc., the dust created is valuable, and it has been found profitable to recover the valuable material from the collected dust by means of a patented electrical precipitation process. (2) Securing cleanliness by providing ample washing or bath- ing facilities. Some plants provide separate lockers for street cloth- ing and working clothing, so arranged that the worker must remove his working clothes, hang them up to dry or place them in the lockers, and must then pass through the shower room before he can get to his locker containing street clothing. (3) Wearing of proper protective clothing, viz., respirators and goggles in dusty processes which cannot be taken care of by exhaust ventilation, as in sand-blasting and emery-wheel grinding; boots and gloves in wet and chemical processes ; special shoes for foundry workers; helmets for welders; water-cooled furnace doors for hot- process workers; overalls, aprons, caps, etc. (4) Shortening the working hours (and, therefore, the period of exposure), allowing rest or ‘‘spell”’ periods in fatiguing and ex- hausting work. (5) Requiring physical examinations at entrance, to weed out those unfit for work and to place others where they are best suited physically; and periodically to ascertain whether workers are suffering from the effects of their occupations so that changes may be made and treatment or necessary advice given. (6) Providing medical care, including first aid and necessary subsequent treatment. (7) Giving health instruction and safety education. 144 THE HUMAN FACTOR IN INDUSTRY (8) Proper layout of plant and good housekeeping so that workers in one process are not unnecessarily exposed to the hazards of another adjacent process. (9) Sanitation of plant to prevent the spreading of communi- cable diseases. This includes adequate and proper toilet facilities, sanitary bubbling fountains, individual towels, spittoons, ete. Noticeable Effect of Cleanliness. — Of these methods of prevention, personal cleanliness is of great importance. Assuming that the chief hazards of the lead industries— dust and fumes — are eliminated, lead poisoning will still occur unless these workers are taught the value of washing (especially before eating) their hands with soap and hot water, cleaning their finger nails, brushing their teeth, and rinsing their mouths, eating lunch outside of workrooms, and wearing working clothing. The Sherwin-Williams Paint Company of Cleveland requires its men in the dry- color department to take daily shower baths and provides clean underwear daily. Before making these provisions and rules, 20 per cent of the force were ill, and six weeks was the average term of service in the department. Now the personnel of this department is nearly permanent, and there is practically no illness from lead poisoning.” It is nothing unusual to see workers in the lead industries, es- pecially painters, eating food and using tobacco on the sur- face of which has been smeared lead in some form or other, in that way poisoning themselves. Plumbism was elimi- nated in the Pullman car shop by ringing a bell ten minutes before the noon hour and requiring all employes to wash and scrub their hands with nail brushes which were kept chained to the wash stands. In one year this “‘ wash-up ”’ system reduced plumbism from 77 cases in 1911 to none in 1912.18 Sex and Age Predisposing Factors. — Future study may reveal more decisively the extent to which age and sex are predisposing factors in the various industrial diseases. In WORKING CONDITIONS 145 certain European countries, boys and women are not al- lowed to work in the lead trades because of their greater susceptibility to lead poisoning, nor in certain trades in- volving exposure to poisons and other hazards. Women in industries seem more susceptible to pulmonary tuberculosis in the early ages. A comparison of textile mill workers shows that in the age period 15 to 24, pulmonary tuberculosis accounted for 36.8 per cent of all causes of death among males and 50.2 per cent among females.!9 It is possible that this may also be true as regards other diseases. Women will probably always require protection in special health-hazardous industries. Attention of Employers Drawn to Occupational Disease by Legislation. — The preventives and remedies for spe- cific industrial diseases and occupational poisonings are too varied to permit of enumeration here. Their study is, however, as incumbent upon the employer, both in justice to the employe and in the interests of efficiency, as the study of accident prevention. This fact is already being forcibly drawn to the attention of some employers by legislation. In France, Germany, Austria, Great Britain, and Russia any one suffering from lung, kidney, or stomach trouble, addicted to alcoholism, or subnormal physically is pro- hibited from employment in the lead trades. Workers in those trades are examined periodically by physicians in most European countries. In France this is also true of com- pressed-air workers and in Holland of stonemasons. In Austria workers with open wounds, tubercular tendencies, or delicate respiratory organs are barred from the paper mills. In this country monthly examinations are required in the lead trades in only a few States, and in New Jersey and New York compressed-air workers must be examined on entrance and those addicted to alcohol excluded.2° Phos- phorous poisoning has been eliminated in the United States, as in foreign countries, by adequate legislation. L 146 THE HUMAN FACTOR IN INDUSTRY Compensation for illness directly traceable to industry is also a question of the immediate future. In two States, California and Massachusetts, an employer is held liable by law for compensation when a disease arising out of the occupation is contracted by one in his employ. But pro- gressive employers do not need such a legislative reminder of the wasteful extravagance of ignoring conditions of work which expose their employes to extra disease hazards. SANITATION Sanitary working conditions are the employer’s first bul- wark against ill health and lost time in his working force. It is difficult to establish standards for sanitary equipment which are adaptable to the different kinds of industries and buildings. Scientific study in each plant by engineers can alone determine the number and variety of lavatories, toilets, dressing rooms, and baths which are needed. Some of the following studies may be helpful, however. Sanitary Standards. — In 1916 a committee of the De- troit Executives’ Club, consisting of two sanitary engineers, one doctor, two safety engineers, and four welfare men, all from large Detroit plants, studied the equipment of model factories, and with the assistance of suggestions from manu- facturers of sanitary plumbing, recommended the following standards for the sanitary equipment of factories.! In addition the Committee stated : The objection to paper towels, “that we do not get our hands dry enough to prevent chapping,”’ can be done away with by a well ventilated, warm dressing room, where the hands dry while dressing. Where there are corners into which waste papers and refuse are thrown, this can be largely eliminated by painting these corners white and lighting them well. One does not throw waste into clean corners. Tile floors should be laid in all washrooms, etc., where possible, otherwise cement, well drained. _ Oily floors should be scraped WORKING CONDITIONS 147 DRINKING LaAVATORIES Torets Founrains LockErs Type. Individual | All porcelain, |Bubbletype| Perforated no wood arranged| metal slant- so lips dojing top not touch|to prevent metal accumula- tion of refuse Located. |In central|Substations|Where con-| In central building] near workers| venient to! building near lockers workers Number. | 1 to 15 men | 1 to 20 men 1 to 30 men| 1 per man. If possible one com- partment for work and one for shop clothes Accesso- | Hot and cold| Automatic Locked. ries water, liq-| flush Forced hot uid soap, air ventila- paper tow- tion to dry els wet gar- Plumbing| Open type, ments plain Special | Porcelain Must have ajIn clean} It is ad- features forced air] light places] visable toar- ventilation rangelockers so that men coming off work at the same time have every second or third locker to prevent crowding Note. Average time | Compartments If lockers per man at| should not are near wash basin} have doors, wash basins 2k minutes} easier to keep alargernum- clean ber can use without wait- ing 148 THE HUMAN FACTOR IN INDUSTRY and swept daily. Where cement floors are used, rubber pads for the men to stand on will help in increasing comfort and efficiency. Where cuspidors are needed, they should be placed on paper mats twenty inches in diameter and changed daily. Paper-lined cuspidors are recommended. In especially dusty trades or wherever poisonous ma- terials are used, as in munitions factories and lead trades, a larger proportion of lavatories will be necessary. The British Health of Munitions Workers Committee recom- mended one basin for every five persons.” Importance of Cleanliness. — In general the benefit of providing adequate washing facilities lies (1) in the bene- ficial effect which cleanliness has on the health of the workers, whether or not poisonous substances are used, (2) in the in- creased self-respect of the workers, (3) in making it possible for the workers to leave the place of employment decently clean and ready for social intercourse or amusement without having to go home first. Necessity for Baths. — Provision for baths in factories is usually urged, (1) Where the worker is exposed to great heat, excessive dust, or contact with poisonous materials. (2) Where food products are handled (to protect the public). (3) And where there are not adequate bathing facilities in the workers’ homes (raise the standard of health and efficiency for the benefit of both worker and employer). This last reason for providing baths is a questionable one. Were the employes’ wages sufficient to pay higher rents, their homes might not lack bath tubs. It may be justi- fiable, however, in addition to good wages, to promote edu- cation in personal hygiene by offering bathing facilities at the company’s expense both as to time and service, or by charging a nominal fee of a few cents per bath. Com- pulsion attached to the use of factory baths is permissible and advisable only where the worker must be protected from WORKING CONDITIONS 149 occupational poisoning or the public from impurities in goods, due to a lack of cleanliness in their preparation. Standard Bath. — The standard bath is a shower. This is more cleansing and more stimulating than the still bath, and easier to keep clean. The overhead shower bath is practi- cal for men, but for women the spray should be projected at the level of the shoulders to prevent wetting the hair. Swimming pools when provided are considered as part of the recreational rather than the sanitary equipment and a shower bath is usually made a prerequisite to entering the pool. Drinking Water. — Every effort should be made to pro- vide a pure, cool and plentiful supply of drinking water conveniently located for the workers. Dr. Darlington pre- scribes seven glasses of water daily for the maintenance of a normally healthy condition, an amount far in excess of that now taken by the average person. Drinking sufficient water results in an improved digestion and better assimilation of food, an equable bodily temperature, a lessened thirst, which in turn reduces the desire for alcoholic beverages, and in lessened fatigue because it enables the more speedy removal of the poisonous wastes which are produced in the system with the expenditures of energy.” Few investments will pay larger dividends than money spent in installing and running an adequate drinking-water system. The important points in such an undertaking are that: (1) The quantity of water to be supplied must be determined. This depends upon the nature of the work, the season of the year and whether drinking cups or bubbling fountains are to be used. The steel mills allow 1 quart per hour to a person, including waste from the cups. The demand for water in this case is unusual. Ordinarily, if a fountain is used, from 2 to 3 quarts per workman every 8 hours is sufficient. (2) The supply must be wholesome and its source should be carefully considered. If possible it should be drawn from an 150 THE HUMAN FACTOR IN INDUSTRY approved city water supply. If the plant has its own system, fre- quent chemical and bacteriological analyses should be made. If not suitable for drinking purposes, the water must be purified by sterilization or filtration. (3) The water should be kept at a temperature between 45 degrees and 50 degrees. It is customary to cool to a lower tem- perature and allow a rise of 4 degrees or 5 degrees in passing through the circuit, with an average temperature of 47 degrees in the system. The refrigerator equipment is usually a small refrigerating plant and a water cooler. The latter consists simply of a storage tank containing a pipe coil in which liquid ammonia is allowed to vaporize. Coolers employing ice are not generally used except in plants of comparatively small size. If the ice comes in contact with the water there is danger of contamination. In piping the water through the building a circulating pump is necessary except in very tall buildings, where the cooling tank is placed at a high elevation. By these methods, fresh, cold, and pure water is brought within the easy reach of every employe in the plant and adds greatly to his health and comfort, besides contributing to the efficiency of the factory.* #4 In most factories the worker must go for the water him- self to some central supply. The German-American Button Company of Rochester finds that ‘‘ it is cheaper for a seven- dollar boy to take water to a twenty-dollar man than it is for the man to go for the water himself.”’ Moreover, having to go after a drink means usually no drink at all, and the necessary seven glasses a day are seldom taken, so that the worker’s efficiency is consequently not maintained. The system adopted by this company is as follows: Six times a day water is served by carriers to every employe in large, individual, metal-plated cups which are carried on trucks with trays holding 48 cups. The cups are sterilized in boiling water after each service and inspected daily. Special apparatus is provided whereby 24 cups are filled at once without waste. * For further scientific details in regard to the establishment of a drink- ing-water system see article by Charles L. Hubbard, ‘‘ Factory Water Supply,” in Factory Magazine, May, 1919. WORKING CONDITIONS 151 Dressing Rooms and Lockers. — Proper provision should always be made for hanging clothing in a clean, dry place, where the danger of theft is reduced to a minimum. Even when the workers are not required to wear uniforms in the factory, the growing and highly desirable tendency among factory operatives to change their clothing for work makes dressing rooms necessary. As much privacy as possible should be afforded the individual while changing clothes, and the dressing rooms must be large enough to prevent crowding and to expedite the changes. Individual lockers should be supplied, although the work may not require a change of clothing. All lockers should be ventilated either by perforations in top and bottom, or, ideally, by a mechanical exhaust system for each row of lockers, which forces the air through the perforations.*® Lockers of the mesh-wire type are acceptable only to the lowest class of workers. Lockers and dressing rooms become comparatively less important in the more cleanly work, however, and a row of pegs, amply spaced, may serve the purpose. Still another variation in the method of taking care of employes’ clothing has been introduced in one of our great American corporations. Overhead hangers are used, because in the lockers working clothes are not properly aired and dried. Thus an employe changing his wet clothes at the end of a shift always has dry ones to put on. An- other device which combines the advantages of both con- sists of wire boxes or receptacles overhead, to which the clothes are hoisted by ropes and pulleys. The wire parti- tions keep one person’s clothing from touching another, while being dried by the warm air current at the top of the room. Theft is guarded against by having each user lock his clothing into position.” Uniforms. — Lockers are not only desirable but neces- sary in factories where street clothing must be changed to or covered by uniforms during the working period. Miners, 152 THE HUMAN FACTOR IN INDUSTRY those employed in the building trades, painters, and men in other highly hazardous occupations usually wear overalls or blue dungarees, but uniforms for women are more rare. These uniforms, in the shape of aprons, overalls, and bloomer dresses with caps, are gaining in popularity for the follow- ing reasons: (1) To prevent accidents in occupations where there is danger of catching clothing in machinery. (2) To prevent occupational diseases where poisonous or acid substances are used in the process of manufacture. (3) To preserve the clothing and self-respect of the worker on leaving the factory premises, where the conditions of work are necessarily dusty or dirty. (4) To protect the consumer, where food products are being handled. (5) To eliminate dress snobbery among the women workers. (6) To induce esprit de corps among the workers in a plant. (7) And to improve the general appearance of the working force. In introducing a uniform it is well for the employer to con- sult the taste of the women and let them aid in its selec- tion. The uniforms are sometimes provided by the em- ployer gratis, but often, as in the case of the Bournville Works in England, either the material for the uniforms or the complete costume is paid for by deductions from the wages of the women. Each employe is supposed to have two uniforms on hand, to enable frequent washing. In order to make the wearing of these uniforms compulsory, it is advis- able that the employer provide them, when they are needed. LIGHTING Effect of Lighting on Production. — Probably nothing affects the output of the worker more directly than does the light under which the work is carried on. Electrical engineers have shown that the rate of output can be increased 2 per WORKING CONDITIONS 153 cent in steel mills and 10 per cent in textile mills and factories, by improving the system of illumination. The night output in one steel plant increased 10 per cent with the installation of an efficient lighting system. To make sure that light- ing was wholly responsible for the increase, the new lamps were taken out, and under the old system output dropped back 10 per cent and returned to the higher rate only after the new lighting system was restored.2? Daylight when obtainable is the best form of lighting for almost all kinds of work. The essentials of daylight illumi- nation as summarized by Dr. Schereschewsky are that: (1) The amount of light admitted to the interior should be as large as possible. (2) The light should reach the center of the room. (8) The distribution of the light upon the working planes should be as uniform as possible. (4) The light should fall upon working planes from a proper direction. ' (5) The walls and trim of the room should be of such color and surface as to absorb but little of the incident light, white being the preferable color. (6) Manufacturing and other equipment should be so disposed as to avoid casting extensive local shadows.?’ Ratio of Floor Area to Window Area. — Roof lighting is preferable to lateral lighting, but is naturally possible only in one-story buildings or on the top stories of others. The minimum ratio of floor area to window area is generally specified as 4 or 5 to 1 for factories, and 7 or 10 to 1 for office buildings.28 The desirable size of the window space varies with the kind of work to be done and the amount of direct light which reaches the windows. Too much daylight may be as bad as too little, if it is glaring and trying to the eyes of the workers. A factory in the manufacturing district of a city may need the maximum possible proportion of wall space devoted to windows, whereas a factory in an open field 154 THE HUMAN FACTOR IN INDUSTRY will need to soften the light in the workroom by decreasing this proportion. Distribution of Light by Means of Special Glass. — Where tall buildings shut out much of the direct light from the sky, the daylight strikes the windows at an oblique angle, and there is a consequent concentration of light in a narrow band near the windows and an absence of it in the center of the room. Roughened, ribbed, or prism glass in the window panes in such a case deflects the oblique light rays into the center of the room and equalizes the distribution of light. In order to obviate the glare of direct light, work tables may be arranged at right angles to windows. Standards of Artificial Illumination. — The quality of artificial illumination must approach as nearly as possible to that of sunlight. The color of the tungsten-lamp light is very much like that of sunlight and is generally recom- mended. In large, high-roofed machine plants the flaming arc lamp is sometimes necessary, but in most cases where the light is suspended from a height less than 40 feet, the single or clustered tungsten lamp is highly efficient. The only exception to this is where there is excessive vibration from machinery which breaks the more delicate tungsten and requires the carbon filament lamp. The tungsten lamp has not only a longer life than the best carbon filament but is at least 100 per cent more efficient and gives a light of a better color value. Positions of Light and Candle Power Recommended. — For safety and efficiency the Industrial Commission of Wis- consin requires artificial illumination in factories equivalent to one candle-power lamp, hung ten feet from the floor, for every four square feet of floor space. This makes individual lights unnecessary except for some kinds of fine work. The supply and quality of light may be adequate, but the good effect entirely neutralized, by failing to have the light fall on the work properly. The lights should be placed above WORKING CONDITIONS 155 the heads of the workers, so that all parts of the room are illuminated and so that at no time do they shine in the eyes of the workers, even when standing in an upright position. Carefully shaded individual lights are usually used for work such as drafting or fine hand or machine work, but where general illumination is more desirable in fine machine work a standard of one half to one candle power per square floor foot hung ten feet from the floor is commonly used. Reflectors. — Reflectors are indispensable with the tungsten lamp, which throws a large amount of its light horizontally. They can be so constructed that the light is deflected to an area somewhat between three and six feet from the floor, and add some 35 to 50 per cent to the efficiency of the lamp. Comparatively speaking, however, there is little work done by artificial light and the great need in many factories is for adequate lighting during the daytime. The funda- mental problems involved are the same. Prevalence of Poor Light.— Poor lighting means in- efficiency and lessened production. It affects output ad- versely by causing (1) unnecessary accidents, (2) eyestrain, headaches, and malaise in the workers, (3) a lower speed in working, and (4) increased difficulty in supervision. And yet the New York State Factory Commission in 1912 found 36.7 per cent of the laundries investigated, 49.2 per cent of the candy factories, 50 per cent of the ice-cream plants, and 64.8 per cent of the chemical establishments inade- quately lighted.18 In over 50 per cent of 45 workrooms of the garment trades in New York City in 1915, illumination was inadequate. It is not surprising, therefore, that three quarters of 2906 workers in the garment trades examined in one year had defective vision.”® Since poor lighting is so prevalent and proper illumina- tion is an important factor in the efficiency of the worker and bears so directly upon the rate of output, it deserves careful consideration and detailed study. 156 THE HUMAN FACTOR IN INDUSTRY VENTILATION Importance of Temperature, Humidity, and Dust Content of the Atmosphere. — Several interesting studies have been made in the past few years to determine the effect of atmos- pheric conditions, within and without the workshops, on the efficiency and health of the workers. It has been supposed that the evils of poor ventilation were due chiefly to the carbon dioxide content of expired air, to the volatile substances given off in perspiration, and to bacteria carried by the air. Now it is known that the chemical condition of the atmosphere has comparatively slight effect on working capacity and bodily condition, and that the air does not carry bacteria to any extent. Quantities of carbon dioxide given off in a manufacturing process or other gases and fumes may be, of course, extremely injurious to the worker, but such conditions are exceptional. It is temperature, humidity and dust content which usually make the air of a workroom good or bad in its effect on the worker. Seasonal Variation in Output. — Professor Huntington traced the daily variation in output of workers in factories in Connecticut and Pittsburgh for three years (1911-1914). Piecework wages were found to vary from season to season, being lowest in January and highest in early June and Novem- ber. Thus the minimum of efficiency came in the cold winter months and hot summer months, while maximum efficiency seemed to be obtained when the outdoor temperature ranged from 60 degrees to 65 degrees.?9 Effect of Temperature on Output. — Exhaustive experi- ments have been carried on by the New York State Commis- sion on Ventilation. Over one hundred men and women were kept at various kinds of physical or mental labor for a day or half day in specially constructed rooms in which the atmospheric conditions were carefully regulated. The effect of hot or cold, fresh or stale air on their efficiency and WORKING CONDITIONS 157 bodily condition was accurately measured. The heavy physical labor of lifting dumb-bells or riding a stationary bi- cycle was performed 15 per cent more efficiently at 68 degrees than at 75 degrees, and 37 per cent more than at 86 degrees.* In typewriting, which combines mental and physical effort to an extent typical of most office work, 6.3 per cent more work was done at 68 degrees than at 75 degrees. In the purely mental work of arithmetic comparative efficiency was maintained at a temperature as high as 75 degrees, but in every other case 68 degrees produced maximum efficiency and was always the most comfortable to the workers. Stale or fresh air made little difference in the condition of the workers, except that their appetite slightly decreased as the proportion of carbon dioxide and organic substances in the air increased.?9 Standards for Temperature and Humidity.— The de- sirable temperature will vary from 60 degrees to 65 degrees for work involving much physical exertion to between 68 degrees and 70 degrees for other work.!? Thompson found that the most desirable relative humidity of the workroom is 55 to 65 per cent, with the air changed three times an hour.®° Ventilating System. — The ventilating and heating system required will differ with each work place. In the ordinary workroom, where the window space is sufficient, 1800 cubic feet of fresh-air space per hour per person can be secured in winter and summer by opening the windows top and bottom and inserting a draft deflector at the bottom. Another excellent method of window ventilation is to admit fresh air over window boards with ample radiation under the windows, while a gravity exhaust is provided for the re- moval of vitiated air. In addition to this window ventila- tion the British Committee recommend for one-story build- ings narrow openings or louvers where the roof meets the wall.3° Electric fans and “ natural draft’ ventilators are * Fahrenheit scale used throughout. 158 THE HUMAN FACTOR IN INDUSTRY commonly used. The latter consists simply in a “ coil so shaped that the air currents blowing around and over it will generate a suction in the pipe leading from the work- room.” 2° Window ventilation is only sufficient where some one person is appointed and authorized to regulate it, otherwise some sensitive person will manage to close near- by windows. In the Metropolitan Life Insurance Com- pany, windows are daily thrown wide open in every depart- ment during rest periods, when the employes are moving about and less susceptible to drafts. The real question is not how much air enters or leaves the room or how much oxygen it contains, but what its temperature is. It is there- fore necessary to install thermometers so that the person in charge may open the windows when the temperature ex- ceeds 68 degrees. A specially devised system of hoods, exhausts, and flues is of course essential where smoke, dust, or heated fumes are given off in the process of manufacture.* Heating System. — The natural and healthy method of heating any room is obtained by radiation from stoves, but in factories this is impossible, and a “ plenum system,” combining “ indirect radiation and mechanical ventilation,” may be provided by an apparatus through which fresh air is blown into the room rapidly by fans over the heating or cooling coil, with a chamber of water sprays to regulate humidity, and passes out of the room through special pipes.!” In heating the work place any system of pumping in hot air which does not include apparatus for regulating humidity has been condemned because it produces a dry, monotonous and depressing atmosphere. Prevalence of Bad Conditions. — Needless to say such conditions — 68 degrees temperature, with not more than 65 relative humidity — are rarely obtained in factory rooms. * For dimensions and kind of exhaust system needed in dust removal see article by John Roach, Hygienic and Sanitary Equipment, Ind. Man, Oct., 1917. WORKING CONDITIONS 159 Of 215 workrooms in New York State recently investigated, nearly one third had a temperature of 80 degrees or over and three fourths of 73 degrees or over.?* In forty-two laundries visited in 1917 by officers of the New York City Health Department, the temperature of the wash rooms ranged from 83 degrees F. to 96 degrees. Twenty-six of thirty-six mangle departments gave a temperature of over 86 degrees. Such extreme temperatures as these are not peculiar to laundries. It is obvious that ventilation is an important factor in labor maintenance, but that no one set of rules can be recom- mended for the ventilation of all work places for all kinds of work. The general principles upon which workroom venti- lation should be based are briefly summarized by the British Committee. The atmosphere should be: (a) Cool rather than hot. (b) Dry rather than damp. (c) Diverse in its temperature in different parts and at dif- ferent times, rather than uniform and monotonous and (which {is ultimately connected with this diversity) (d) Moving rather than still. Fire Protection The Need for Fire Prevention. — The task of fire pre- vention which lies before the American people and manu- facturers is evident when we compare the per capita annual loss by fire in France, Germany, Austria, or Italy, which was less than $.50 even eighteen years ago, with that in the United States, which was $3.02 during the five-year period preceding 1907.18 The fire losses in New York City are 44 times as great asin London. In 1917 the total loss from fire in the United States was $267,560,740.% Building Construction the First Problem. — A model factory from the standpoint of fireproof construction is the Bournville Works in England, which covers some thirty- 160 THE HUMAN FACTOR IN INDUSTRY three acres of land and consists of numerous workrooms, ware- houses and offices. The stock room, in which large quantities of sugar, flour, cocoa, timber, paper, oil, petrol, etc., arestored, is in an isolated building made of brick, steel, and ferro-concrete. Each section of the building, each elevator shaft and stairway, is an isolated fireproof unit. The power gas plant and electric generating station are likewise isolated. In the factory buildings, floors are of ferro-concrete supported by ferro-concrete incased stanchions. No inflammable wood is used in the newer buildings and steel principals support the roof. Fireproof doors separate each department and close each window, while the connecting bridges and pas- sages between departments are constructed of iron or ferro- concrete. Such elaborate construction is not feasible in smaller factories, however, and instead of the reinforced concrete building, it may be necessary to use the standard mill con- struction building, consisting of massive timber which can be charred but not easily burnt. Such a building costs only 25 per cent more than the inflammable frame building and is therefore rapidly displacing the latter. In all factories, in addition to the provision of adequate exits and stairways, each floor should be an isolated fire unit, all interior openings to elevators, stairways or air shafts should be protected by fireproof doors or shutters, and the fire escapes should not pass openings through which flames can issue directly from any floor.!” Other Precautions. — Although the buildings may be of the most approved fireproof constructions, danger still re- mains if easily fired dust is allowed to accumulate or if inflammable waste material is left exposed to the air. Mechanical dust collectors are needed in the more dusty departments, and men should sweep out the rooms and passages daily. During each holiday the beams, girders, and machinery in WORKING CONDITIONS 161 factories should be cleaned. Iron boxes with air-tight lids should be provided for oily rags, and in each room receptacles for rubbish should be supplied. In many factories smoking is wisely prohibited except in special smoking-rooms, at meal- times, and only safety matches provided by the firm are used on the plant premises. Fire Alarms.—In spite of every precaution fires will occur. It has been estimated that 80 per cent of the fires in the United States are due to carelessness,®* and this estimate, which is certainly not unduly exaggerated, indicates the importance of enabling the speedy discovery and extinc- tion of unavoidable fires. A watchman on constant duty should be checked in his rounds by recording clocks at various stations in the factory. In the more dangerous places, where inflammable materials are stored or where fires may easily originate, thermostatic fire alarms should be installed, in which an electric current starting the alarm is automatically produced whenever any part becomes over- heated. In every factory some system of fire alarms is essential. Fire Extinguishing Apparatus. — Fire pails should be adequate in number and kept full of water. Hose boxes must be freely distributed and sufficient water pressure assured. Sawdust or sand boxes should be placed where oils are stored, and chemical fire extinguishers established at frequent intervals. Pressure from insurance underwriters has resulted in the general installation in large factories of the automatic fire sprinkler, a system of overhead pipes from which streams of water are projected when the fusible metal which closes the openings is melted by a heat of about 160 degrees F.18 Large plants, such as the Bournville Works, are sometimes equipped with their own fire-engines, hose carts, smoke helmets and trained fire brigades. Fire Drills. — Confusion resulting in panics is the chief cause of fire accidents. For this reason fire drills should be M 162 THE HUMAN FACTOR IN INDUSTRY insisted upon, weekly or bi-weekly, on different days, without any previous notice. For plants operating the full twenty-four hours, fire drills for the night force should be included. The usual procedure in organizing such drills is that of appoint- ing a captain for each floor and instructing the employes to follow their aisle leader to the nearest exit in quiet, unhurried order. The fire chief is usually the police chief or chief elec- trician who is in command when the alarm sounds. In the Bournville Works a fire brigade of twenty-nine men is on call by special signals day and night. They are re- munerated by bonuses for practice attendance, and a quar- terly allowance toward house rent. The brigade gains expe- rience in combating fires by being allowed to turn out for any call in the locality of the factory. Two members are appointed each week to inspect daily all rooms after work hours, disposing of neglected waste, closing fireproof doors and shutters, and removing obstructions which may prevent easy access to the fire appliances. Fire drills are held occa- sionally. Fire exits lead down to the ground and up to the roof, where roof walks make it possible to get from one end of the works to the other. CHAPTER VII MEDICAL CARE Extent of Illness in Industry. — Efficiency and health are inseparable. Yet statistics indicate a markedly debilitated state of health in the working population. A recent study of 750,000 workers made by the United States Public Health Service showed the existence of a 6 per cent non-effective working force in American industry.!. Minor ailments are chiefly responsible for this large percentage of non-effectives. Fresh colds are allowed to develop into bronchitis and scratches into infected sores, decayed teeth lead to intestinal poisoning, and small ills are generally ignored until their cumulative effects result in serious illness or disease. The net result is that in the United States some 284,750,000 days are lost yearly by 33,500,000 wage earners.2 Each worker loses approximately 83 days a year at an annual loss to the country of some three quarters of a billion dollars. In terms of one large corporation in 1916 this meant that 10 per cent of their turnover was due to illness. In another corporation it was 13 per cent.’ Economy and Expediency Make Ilness an Industrial Problem. — The prevention and cure of illness is essentially a community and not an industrial problem. The individual employer, however, can do much to eliminate disease and pre- vent accidents by providing sanitary, hygienic, and safe working conditions with reasonable hours and adequate wages. Beyond the factory or office building lie heredity, bad habits, impure food and water, unsanitary housing, and all the various causes of disease over which he has little direct control. In spite of this fact employers are rapidly 163 164 THE HUMAN FACTOR IN INDUSTRY discovering that there is a dollar and cents return from pro- viding medical care for employes, at the company’s whole or partial expense. Even though we may hope some day for public provision and supervision of medical care for the entire community, there will always be a residue for which the industrial unit should be held responsible. Pioneer Corporations in Industrial Medical Care. — Railroads were among the first to consider the care of their employes. As early as 1867 the Southern Pacific Railroad Company rented a residence in Sacramento, California, for a temporary hospital and in 1869 built the first hospital in this country for the care of railroad employes.* Large corporations were also pioneers in investing capital in medical care. The Crane Company in 1886 established one of the first separate medical departments in any industrial concern, and shortly afterwards built a sanatorium for disabled em- ployes.> In the nineties the Swift Company installed a full- time physician in their plant,® and the National Cash Register Company began the physical examination of employes in 1901.7. Many Chicago corporations undertook the medical care of their employes after the campaign of the Tuberculosis Institute in 1911, which sought first and foremost the adop- tion of an examination of all employes in order to detect tuberculous symptoms. Thirty firms joined in conferences held by the institute and the campaign finally resolved itself into one for the adoption of a general medical examination of employes in order to detect any disease or physical defect. The result was that, in three years’ time forty-seven firms had joined the movement, representing 187,100 employes, and the entrance examination was adopted by firms covering 58,000 employes.® Effect of Workmen’s Compensation Laws. — Thus initia- tive on the part of individual firms has done much to establish preventive and curative medical care of employes as a func- tion of industry. But isolated efforts of this sort would MEDICAL CARE 165 have done little to popularize the movement had it not been for the passage of Workmen’s Compensation Laws. In Ohio, for instance, prior to 1914, only four establishments outside of the railroads examined applicants for work. Within a year and a half after the Workmen’s Compensation Law went into effect, forty-two establishments, employing 68,500 persons, had installed the physical examination either of applicants for work, or of all employes, or both.? Moreover, since the introduction of Workmen’s Compensation Laws the occupational diseases of lead and phosphorous poisoning have attracted sufficient attention to bring about legislation in some of our States in regard to the medical care of workers in trades utilizing these materials. Progress during the War. — During the recent war great impetus was given the movement to conserve the labor power of the country through the promotion of industrial medicine. In addition to the Division of Industrial Medicine and Hygiene of the United States Public Health Service, organized in 1912, similar bureaus have been organized since 1814 by the Department of Labor, the Ordnance Department, the Railroad Administration, the Shipping Board and the Council of National Defense. Six medical colleges have introduced courses in Industrial Hygiene, and four others are known to be contemplating such courses.’ The American Association of Industrial Physicians and Surgeons, formed in 1915 with seventy-five charter members, in 1918 numbered three hundred and sixty.'® Evident Value of Medical Care. — The movement to pre- vent and cure illness in industry by providing facilities for treatment and diagnosis has now gained such momentum that there is scarcely need to argue its value. Graphic illus- tration of the effect of such health supervision in reducing lost time was found by the New York Department of Health," which noted a marked reduction and by the Norton Com- pany. With the Norton Company the use of the dispen- 166 THE HUMAN FACTOR IN INDUSTRY sary is voluntary, but its value as a time saver is great. In one year it was found that of all the men who lost time from sickness or accident, those who applied to the hospital saved an average of 19.2 hours per man per month over those who did not do so.” Some plants report the elimination of septic infections or blood poisoning from minor accidents by the introduction of emergency equipment. An Ohio manufacturer, by put- ting in an emergency hospital, reduced absenteeism due to infection from six cases a day to four cases a month. In one year’s time the emergency hospital of a New York de- partment store reduced absenteeism by more than 72 per cent.¥ Obvious Benefit of Periodic Physical Examination. — The records of periodic physical examination show most clearly the immediate benefit of medical care. One corpora- tion, as an experiment, gave a careful physical examination to one hundred of its principal employes in April, 1918, and followed this with reéxaminations in September, 1918, and February, 1919. Of the forty-nine employes reéxamined in September, 59 per cent, or twenty-nine employes, showed improvement in the following items : 4 No. Prr Cent Blood pressure ne 14 Lungs 1 2 Pulse. . 1 2 Urinalysis . eZ 4 Teeth . 12 24 Eyes. 3 6 Ears. . oo, 4 Weight . . 11 22 Constipation 2 4 Personal hygiene 2 4 In February, thirty-one of these employes were again checked up and improvement noted as follows: MEDICAL CARE 167 No Per Cant Blood pressure. . ...... =. 10 32 Teéth: 3 4% se ee ee we, eee 8 16 Skis In 1910, 32 large firms in Chicago built and equipped the Valmora Industrial Sanatorium in Watrous, New Mexico, for their tubercular MEDICAL CARE 183 employes, with a capacity for only 30 patients. Five dollars is the membership fee for either firm or person and $20.00 extra is charged firms for each person in their employ over 1000. The treatment costs $10.00 a week and is paid by either employe or employer. There are difficulties with this arrangement, however, in that the sanatorium is so far away that the expense of transportation is a large item, and its inaccessibility makes it harder to persuade an em- ploye to accept provision for his care. The Sears Roebuck Company’s method, of paying the expenses of tuberculous employes in nearby outside sanatoria, would seem more practical. TUBERCULOSIS IN INDUSTRY Tuberculosis in Different Occupations. —In any in- dustrial health campaign one of the first objectives is the detection and arrest of tuberculosis, which is the cause of 20.5 per cent of all deaths at all ages in nineteen different occupations — according to the mortality experience of the Metropolitan Life Insurance Company. Forty per cent of those who die from tuberculosis are between the ages of 25 and 34 and their average age at death is 37.1 years. Among clerks, bookkeepers, and office assistants occur 35 per cent of all the deaths from tuberculosis and one half of these occur in the above age group. The proportionate mortality from this disease is high among textile workers, saleswomen, garment workers, compositors and _ printers, plumbers, gas and steam fitters, longshoremen and steve- dores, teamsters and drivers. Tuberculosis is least common among coal miners and comparatively rarely affects farmers and farm laborers.# This uneven distribution of tuberculosis among different occupations is apparent even within a single plant. In one shop of the International Harvester Company there was only one case among 700 men in two years, whereas 184 THE HUMAN FACTOR IN INDUSTRY among 400 office employes the tuberculosis rate was high and in many departments far exceeded the entire plant average. In any clerical force the tuberculosis rate is higher than in a shop force, not only because the physically vigorous are apt to avoid sedentary occupations but be- cause the work itself is so confining. The Periodic Examination an Important Preventive. — A high tuberculosis rate in any one occupation may be due to the home environment of the class of labor involved, or to inadequate sanitation and overheated, moist or dusty air in the work place, or to the nature of the occupation. Methods of checking the spread of the disease and restoring the diseased worker to an efficient state of health must vary accordingly, but no effort made by employers to assist tuber- cular employes is of permanent value unless it leads to the early detection of new cases. The most potent factor in preventing and curing tuberculosis in any occupation is the periodic physical examination. The value of catching the disease in its incipiency is obvious. In a group of patients of the Loomis Sanatorium, Loomis, New York, 37 per cent of seventy-eight incipient cases obtained and retained satis- factory health and working efficiency.“ The early detection of tubercular conditions is made possible in industry only by the periodic physical examination. In the sanatorium maintained by the Metropolitan Life Insurance Company, 66+ per cent of the admissions were in the incipient stage in 1917, and there is a steady yearly increase in the propor- tion of incipient cases admitted. This fact is attributed to the annual physical examination.” A Successful Tuberculosis Campaign. — Some efforts to check tuberculosis in industry have proved the possibility of success. In 1904 the management of a large boot and shoe factory in the small town of Oxford, Mass., discovered that one out of every six deaths among their employes was caused by tuberculosis. The company immediately under- MEDICAL CARE 185 took the education, examination and treatment of their workers. In 1907 only four people in all Oxford died from tuberculosis, which indicates the success of the company’s campaign. Failure of Tuberculosis Campaigns Caused by Em- ployers.— Less successful efforts were made shortly afterwards by firms in Providence, Rhode Island, and in Worcester, Mass. Plants in Providence posted plac- ards asking employes with suspicious lung symptoms to report for a medical examination by the company’s phy- sician.* This voluntary reporting system is obviously unsatisfactory unless curative assistance is widely adver- tised. In Worcester, by an agreement arranged by Dr. Overlock with the Department of Health, thirty-four manu- facturers consented to pay the expenses of treatment for tubercular employes. The movement was given great publicity throughout New England, and in a few years it supposedly included 1200 mercantile and manufacturing establishments employing 2,000,000. A National Association was about to be formed, when an investigation disclosed the fact that only six of the thirty- four Worcester firms nominally taking part in the move- ment were willing to post notices asking employes to be examined. Seven of these firms did not even want it known that they were willing to pay the expenses of treatment, emphatically stating that they promised nothing, and would render aid only in individual cases. The lack of codpera- tion among the participating employers brought about the collapse of this valuable organized effort to combat tuber- culosis in its very infancy.” Free Bed Funds Play No Part in Prevention. — Em- ployers and employes of Hartford, New Haven, and Meri- den chose a different path and joined in contributing to Free Bed Funds for tuberculous workers. Although this form of codperative effort has proved highly useful in the 186 THE HUMAN FACTOR IN INDUSTRY curative phase of the work, no system of regular examina- tion of all employes has been adopted, and consequently prevention plays little or no part in the various schemes. Much more pertinent and valuable has been the work of the Chicago Tuberculosis Institute, mentioned previously. This included the general physical examination for all employes and made the entrance examination common in Chicago industries.® Reémployment of Tuberculous. — Whether or not the industry assumes responsibility for the care of tuberculous workers, their reémployment and after care are essentially an industrial problem. Dr. Vogeler of the Sprain Ridge Sana- torium for working people, in Yonkers, has pointed out the distinct advantage of having the employe return to his former occupation, provided the conditions of the working place are favorable. Light outdoor work is hard to get, while the pay is also light and risk of exposure dangerous. Sixty per cent of the Sprain Ridge discharged patients have returned to their old employments instead of entering new work, and the results have been most satisfactory because the employe can command .a higher wage in the work to which he is accustomed, which means better food and better home surroundings, and because he is freed from the worry of learning a new trade. Moreover, work of some kind is recommended to every discharged patient as essential to the maintenance of good health.‘ After Care. — With the employe back at work for which he is suited, there remains the necessity of careful watching to prevent the return of the disease. In the Metropolitan Life Insurance Company a Home Office clerk on his return from the sanatorium reports twice a week to the Dispensary to be weighed and twice a month for a thorough medical examination. Milk is served twice daily to anemic or tuber- culous employes, in the Rest Room. The result of this after care is that in a period when ninety-eight employes were MEDICAL CARE 187 returned to active duty from Mt. McGregor, only six were sent back because of a relapse to their former tuberculous condition.” Mepicau Starr Comparative Costs of Regular and Part-Time Staff. — Of the 47 metal-working establishments with medical departments investigated by Mr. Alexander, 20 employed regular, full-time physicians and surgeons and 27 employed regular physicians for only part time or subject to call. The average cost of medical supervision in the latter groups with only one third as many employes, was 86.4 per cent higher than the average cost in all 47 establish- ments.?° Evidently the cost is greatly decreased where the medical staff is in constant attendance, ready to meet every emergency. Every delay in medical or surgical treatment means an added expense from prolonged treatment and from ensuing absenteeism. For this reason it is impera- tive that a plant either maintain its own corps of physicians and nurses or join‘with neighboring plants in meeting the expense of such a corps. Joint Medical Department Maintained by Small Plants. — This is done in Walpole, Mass., where four small plants join in hiring a nurse.’ In 1915 the Commissioner of Public Health of Toledo proposed the organization of a “Bureau of Industrial Safety, Sanitation and Hygiene, to be Maintained on the Mutual Plan.” This bureau was “designed to do for the small employer what the large manufacturer is able to do for himself,” in the way of edu- cational work, the exchange of information, the making of investigations or surveys and the offering of recommenda- tions. The activities outlined do not indicate the extent of medical or surgical treatment contemplated. The plan is suggestive, however, of the possibility of coéperative medi- cal supervision in small plants. An outline of the organiza- tion of this bureau is charted as follows: °° THE HUMAN FACTOR IN INDUSTRY 188 doNyvonpy wmorneurure “Xq_Teors The Kaul Lumber Company also lays emphasis upon the fact that the workman gets nothing for which he does not pay, thus eliminating the element of paternalism. It is apparent from these examples that furnishing homes for workers involves not only the pro- vision of comfortable, convenient, and clean living quarters, but the assurance of civic independence as well. After the employer has determined upon the necessity of housing his employes, the-problems of finance, of planning the town, the type of houses, the relative cost and advan- tages of different materials, the standards of sanitation to be followed, the demands of the employes, the relative value of renting or selling the houses, and the necessary restric- tions must be considered. Financing Industrial Housing. — Industrial housing may be financed in one of two ways, either as a general overhead expense or by a subsidiary company. A recent investiga- tion indicates that most housing work is conducted as a general part of the employers’ principal business.1® The danger of this is that it is not the primary business, and so will be neglected and there will be no return for the invest- ment. If the housing scheme does not yield a return on the investment, it becomes charity, and may easily develop into paternalism. Because of this danger we notice a tendency to create a subsidiary company whose business is housing. “Tndian Mill,” the industrial village of the Norton Com- pany, Worcester, Mass., is conducted by a subsidiary com- pany,!® as are also a number of the United States Steel Corporation towns. An interesting example of this method coupled with the use of insurance capital is that of the Good- year Heights Realty Company, a subsidiary of the Good- 272 THE HUMAN FACTOR IN INDUSTRY year Tire and Rubber Company. The houses are completed, and after estimating the actual cost of the lot and build- ing erected thereon 25 per cent is added. The selling price or real estate value of the house is therefore 125 per cent of the actual cost. On this amount two mortgages are placed. The first mortgage is taken by the Metropolitan Life Insurance Company for one half of the real estate value, and the Goodyear Heights Realty Company assumes the second mortgage. The interest is 6 per cent on both mort- gages. When the development was first started the pur- chasers were asked to pay no money down, simply move into the house and begin making monthly payments. It was later decided that a small original payment would make the plan more of a business proposition. Two per cent is the amount to be paid down. At the end of five years, if the purchaser is still in the employ of the Goodyear Tire and Rubber Company and if he has not sold or transferred the title to his property, the company will return 25 per cent to him in the form of a credit on his account.2® That is, the company sells the house at actual cost. The follow- ing table gives the semi-monthly payments to be made on TABLE OF PAYMENTS REQUIRED ON PROPERTIES AT VALUES GIVEN Semi-Monrariy Payments (15 Years) Cosr oe First 5 Yrars| Next 7 Years | Last 3 Years $1,984.00 $2,480.00 $11.27 $7.31 $3.86 2,288.00 2,860.00 13.01 8.45 4.44 2,682.00 3,352.50 15.25 9.86 5.19 2,699.00 3,375.75 15.34 9.88 5.22 2,801.00 8,501.25 15.92 10.24 5.43 2,808.00 3,510.00 15.97 10.26 5.43 2,845.00 3,556.25 16.16 10.47 5.53 2,896.00 3,620.00 16.54 10.67 5.22 2,998.00 3,747.50 17.06 11.03 5.75 THE EMPLOYER AND THE COMMUNITY 273 property whose real estate values vary from $2480 to $3750. The 2 per cent original payment is not included.?? Importance of Town Planning. — Few employers have realized the importance and economy of scientific plan- ning for a housing development. Of 213 company-housing schemes recently investigated only 15 per cent had given consideration to the technique of town planning.” We have not profited by the experience of England, whose garden cities are well known. The town planning features came as a result of the garden city movement. In 1899 the Garden City Association was formed and in 1903 Letchworth, the first garden suburb, was organized. Large employers have realized the advantages of well-planned garden suburbs and have built such suburbs, among which are Port Sunlight, the home of the Lever Bros. Ltd., manufacturers of soap, and Bournville, near Birmingham.% As a result of the initiative of private enterprise the House, Town Planning, etc. Act was passed in 1909 which gives municipalities power to regulate housing developments.” A few employers in the United States have realized that in order to insure a healthy, convenient, and beautiful city it is necessary to plan carefully the relations between dwellings and factories, to district the cities properly and to insist upon adequate building regulations, means of trans- portation, and the wise distribution of parks and facilities for recreation.» A town planner was consulted before the Viscose Industrial Village was built. Here we find a com- bination of row and “twin” houses for single families, boarding houses for unmarried workers of each sex, and in addition a community store and recreation building. An- other example is “‘ Indian Hill.”’ The best possible grades have been secured for main streets, and only slightly steeper ones for the non-traffic ones. The situation of the com- munity center combines proper geographic location with beauty of outlook. Reservations have been made for park T 274 THE HUMAN FACTOR IN INDUSTRY areas, and a shore drive reserves the banks of the lake to the city for all time.” Other carefully planned industrial villages are ‘® Fairfield, one of the United States Steel Cor- poration’s steel towns; Kaulton, built by the Kaul Lumber Company; and the Overlook Colony, Claymont, Delaware, developed by the General Chemical Company.%% Most industrial housing projects have been developed without attention being given to proper location of dwell- ings. After the site of the factory has been determined, houses for the workers have been grouped about it without regard for adequate consideration of sanitation, conven- ience, exposure or water supply. Town planning experts should be consulted by the employer for methods of meet- ing the needs of both plant and population. Type of House. — There is no standard type for company houses, but four-, five-, and six-room houses are most preva- lent.1® There is also a choice to be made between the de- tached house and the row or group dwelling. In this coun- try there is a general dislike for the group house because it has been associated with long rows of stereotyped houses. But the choice does not lie between dreary monotonous group houses and well-designed detached houses. In either case the house may be well designed and attractive or badly constructed and ugly. A recent development of the group house is that of Sawyer Park, near Williamsport, Pennsylvania. While it is not essentially an employers’ scheme it is sufficiently small for the employer forced into the housing business to con- sider it a hotel for certain developments. There are three types of houses: two-family houses, semi-detached or double, four-family houses, and six-family houses. They are at- tractive in design, picturesque, and quaint.?9 An example of a well-designed detached house develop- ment is Eclipse Park at Beloit, Wisconsin, for the employes of the Fairbanks Morse Company. Here one finds four-, THE EMPLOYER AND THE COMMUNITY 275 five-, six-, seven-, and eight-room houses. Although there are five types of houses there are about forty different designs or styles of houses. Monotony has been avoided and at the same time the architectural harmony has been kept. In the words of Lawrence Veiller, ‘‘ This develop- ment gives promise of being one of the most artistic, and attractive thus far evolved in this country.” The conditions which determine the most desirable kind of house are the character of the labor, climatic conditions, and building costs. While the Sawyer plan and that at Eclipse Park are among the best developments in this coun- try, the houses are too expensive for all but the skilled worker. Other experiments in housing which provide shelter, sanitation, provisions for family life and esthetic pleasure, at lower cost, have been made. At Danielson, Con- necticut, are some very attractive and less expensive houses. They have light rooms and sanitary conveniences. Ex- teriors vary in both style and material, some are shingled, some are clapboarded, and some are stucco. Housing Costs.— With good judgment it is always possible to build well-designed and attractive houses within the purchasing power or renting ability of the wage earner. This is the most important consideration in industrial hous- ing. A wage earner who is apportioning his income properly will not spend more than a week’s wages for a month’s rent. A recent study of earnings in factories of New York State, March, 1919, which may be considered as indicative of the general wage situation, gives the lowest average yearly earnings as about $700, the highest as about $1800 and the average as about $1200. The man earning $1200 cannot afford to pay more than $300 annual rent, and if the house is to yield a 9 per cent return on the investment it must not cost more than about $2900, and for those earning less the cost must be correspondingly lower. The type of ma- terial which is best from the standpoint of economy, health, 276 THE HUMAN FACTOR IN INDUSTRY permanency, and durability depends upon local supply and climatic conditions. Frame Construction.— Frame construction is usually found in coal-mining communities. These cottages cost about $1000 and rent for about $2 per room per month.” They usually lack adequate plumbing and the exteriors are monotonous. Some efforts have been made to improve the standard frame dwelling, notably in Danielson, Conn., a development started in 1915 by mill officials, where the cost has been about $1900. In South Barre, Mass., the Barre Wool Combing Company has built some frame houses cost- ing about $1950 per family in 1912. Brick Construction. — Brick construction has a com- paratively high initial but low maintenance cost. The Penn- sylvania Coal and Coke Company built some brick cottages before 1917 costing between $1000 and $1600. These dwell- ings have two rooms on each floor, a small kitchen in a rear extension, and in some cases a bathroom has been added. Hollow Tile Construction. —In 1913-1914 a number of hollow-tile houses were built for the employes of the Lehigh Coal and Navigation Company at a cost of construction of about $1100 for a bungalow with no cellar or heat, about $1950 for a five-room house with cellar bath, and heat, and about $2300 for a six-room house with the same conveniences. Concrete Construction.— The Ludlow Manufacturing Company used concrete-block construction for its em- ployes’ houses, with cost in 1913 from $300 to $350 per room. Poured concrete was used for the 40 dwellings completed in 1912 for employes of the Delaware, Lackawanna, and Western Railroad at Nanticoke. The cost was about $1160 for each dwelling, which contained six rooms but no bath- room. Window boxes and shrubbery are used to relieve the architectural monotony. Stucco Construction. — Stucco has been used for the construction of houses by the Goodyear Tire and Rubber THE EMPLOYER AND THE GOMMUNITY 277 Company. This development was begun in 1912. A number of different styles of cottages have been built. The costs vary from $1800 to $2500.13 The stucco houses at Eclipse Park built in 1917 cost between $2700 and $2800 while the houses in the Sawyer Park development of 1917- 1918, many of which are stucco, sell for $2935-$3335. ; Winthrop A. Hamlin sums up the relative possibilities of the various types of materials as follows: 'Frame construction seems likely to decrease because of the generally increasing cost of lumber. ... But in many localities wood remains cheaper than other building materials. It will also tend to be used where social changes are occurring rapidly... . Brick is to be recommended wherever local conditions are such that it can be cheaply secured. Hollow tile is in somewhat the same class, though requiring further development before its possibilities can be fairly judged. . . . Conerete, especially “‘ poured’’ concrete, is of value chiefly in large scale housing undertakings. ... The progress of stucco depends especially on the certitude of good work- manship in its use.3? The Cost of Land. — Local conditions will always de- termine the type of house needed. A universal demand will exist for economical building. That this is coming to be appreciated is illustrated by the advertisement of a build- ing company which states that its object is to “deal in economic housing as a standard commodity by the manu- facture and erection of low-cost dwellings and tenements.” * But as important as building costs is the cost of land. Cheap land permits low rents; high land means high rents. The employer in the new community has the opportunity of taking advantage of comparatively cheap land, but he often allows the land speculator to gain control. This was il- lustrated at Gary, as indicated above. Richard 8. Childs, Secretary of the Committee on In- dustrial Towns, New York City, has suggested the plan of meeting the problem of increasing land values by having 278 THE HUMAN FACTOR IN INDUSTRY the employing company create a limited dividend land com- pany which would rent, not sell, the land. The income from land rentals at the rate of 4 per cent on the advanced land values would be enough to amortize the investment and leave twice as much money for community purposes as the town would normally obtain from taxation. At least, that is the way it figures out in Gary and Lackawanna. The land company could afford to charge less than the traffic would bear, or preferably close to what private landowners would exact, and use the revenues for services which would reduce the cost of housing.*4 Housing Standards. — The standards of sanitation for company housing schemes vary, but a survey of 53,176 company houses shows that 18,649 or 35 per cent have no modern inside sanitary conveniences.!® Such an oversight is unfortunate. Many firms, however, have realized the im- portance of developing high standards, and during the war the government established certain standards for indus- trial housing projects. ‘Standards Recommended for Per- manent Industrial Housing Developments,” were pub- lished in a valuable handbook by the Bureau of Industrial Housing and Transportation. In brief, the standards for a single-family, a two-family house, or a single-family house with rooms for not more than three boarders are as follows: Arrangement. Row or group houses normally not to be more than two rooms deep. Basements. No living quarters to be in basements. Closets. Every bedroom must have a closet. Furniture space. Location of beds not to interfere with windows or doors. Lighting. Electricity preferred. Materials. Dependent upon local supply. Ventilation. Every room to have at least one window opening directly to the outer air. Heating. Provisions to be made for heating houses. Plumbing. Bathtub, lavatory, kitchen sink, washtubs, toilet. THE EMPLOYER AND THE COMMUNITY 279 Rooms. For higher-paid workers five-room type preferred. For lower-paid workers four-room type desirable. Lodgers. If lodgers are to be taken, additional single rooms should be provided. Fairfield Heights of the Fairfield Steel Company conforms to a high standard in regard to heating, lighting, plumbing, and space. The sizes of rooms and height of ceilings con- form to government standards.” Another set of interesting standards well worthy of con- sideration is that suggested by English women, the wives of workmen. The following is an outline of demands based on experience.#5 1. A bath is necessary in a separate room, preferably on the second floor, except in mining districts, when the workman must have his bath immediately upon entering the house. 2. The house should contain three rooms on the ground floor, parlor, living room, and kitchen. 3. Hot water is an essential comfort. 4, Three bedrooms are the required minimum. High Standards Always Possible. — That high standards may be maintained even in company barracks is illustrated by the barracks of the Hercules Powder Company, Dover, N. J., which are steam heated, electric lighted, and supplied with hot and cold showers.** Bunk houses also may be sani- tary and agreeable, as is shown by the portable bunk houses for construction workers used by the Pennsylvania Rail- road. These are of white pine, lighted by electricity, equipped with screens, stationary washstands and hot and cold water, and in camps which are sufficiently large and where drainage is possible, shower baths are provided.*” Housing standards, in addition to minimum health re- quirements, should consider the habits and standard of liv- ing of the people who will occupy the houses. One writer suggests that the size of the kitchen marks inversely the 280 THE HUMAN FACTOR IN INDUSTRY social progress of the worker’s family. When the income is very low the kitchen is perforce the family living room and should be proportionally ample; for the middle in- come group there should be a “ best room ” in which to re- ceive callers; higher-income groups demand a dining room in addition.” Standards Varied for Different Classes of Labor. — The difficulties connected with the development of cheap houses and the problems in connection with their upkeep have caused company housing to cater especially to higher-paid workers. Although many companies supply houses to all classes of employes, preference is naturally given to the higher-paid workman, who is most difficult to retain.1° There are, of course, notable exceptions. The house development at Wilson Station, Pa., for the By-Product Coke Plant, provides for different classes of workers.” The American Rolling Mill Company at Middletown, Ohio, provides houses for foreigners.*® At Morgan, Pa., provision is made for various types of workers.” In the Viscose Industrial Village one finds houses of varying size renting from $12 to $17 a month. Single Worker. — It is also important to provide for the single men and women, and in doing so to remember that “ Liberty is worth considerable inconvenience.’”’ One Eng- lish firm had no applicants for a proposed hostel because of the many rules regulating personal conduct.3® On the other hand, the Waltham Watch Company, Waltham, Mass., successfully maintains a large boarding house for its women employes. No restraint is placed upon the freedom and movements of the inmates. A boarding house for men is provided, but not maintained by the company, in which the company prescribes the rates. No one is required to live or board at either of these two houses. There is free- dom in every respect. Their existence there lowered the prices for board and room in the entire community.?° THE EMPLOYER AND THE COMMUNITY 281 Renting or Selling Homes for Workers. — Whether houses should be sold to workers is of importance. There is an old-fashioned idea that the laborer should own his own home; but that this is no longer popular is shown by a survey of 213 company-housing plans, out of which only 33 reported the practice of selling houses to their employes.!® The employer may wish to encourage home owning in order to release capital for the expansion of the industry, to stabilize the working force, and to allow people to satisfy their desire for home ownership. This is impractical where the industry is a temporary one. In a one-industry community also, home owning may serve to create rather than allay dissatisfaction, since it makes the employe feel that he has lost the ability to leave his job at will or to oppose the employer in questions of working conditions and wages. A man does not want to own a house unless he can get rid of it if he loses his job, or if the job ceases to exist in the community, or if he suspects that home owning is a weapon in the hands of the employer in case of labor trouble. For these reasons we usually find that when houses are sold to workers the last is safeguarded. In Gary and Fairfield, provision is made for buying back the house if the em- ploye so desires. No such provision is made in Granite City, but as no mortgage has ever been foreclosed and in several instances houses have been taken back and the purchase price returned, the result has been the same.'* In towns such as Akron the problem is not serious. There is a more ready market in case of sale and other opportu- nities for employment in numerous industries. General Housing Restrictions. — The problem of restric- tions is an important one in an industrial as in any other resi- dential development. One owner may have high standards and keep his property in good condition while his neighbor may be slovenly. The Goodyear Rubber Company has 282 THE HUMAN FACTOR IN INDUSTRY introduced several restrictions which have been proved acceptable, as follows :*° 1. Property, with the exception of specified areas, shall be used for private and residential purposes only. There shall be no trade or business inconsistent with the occupation for residential purposes. It is unlawful to use any of the property as a dumping ground. 2. No residence shall be built on any lot or lots costing less than the required minimum. This minimum is from $1800 to $2500, according to the location. 3. The location, material and designs are subject to the approval of the Goodyear Heights Realty Company’s landscape gardener and architectural advisers. 4, No building shall be erected on any lot with its front wall nearer the street than 15 to 25 feet, depending upon the location. 5. No porch or minor part of a house shall project more than 5 feet nearer the street than the building line. 6. Only one residence shall be built on any lot. 7. No fence or solid obstruction shall be built nearer the front than 60 feet. 8. A barn or garage must be of the same material as the house. 9. Violation of any of the restrictions gives the Goodyear Heights Realty Company the right to enter the property and remove the objectionable features at the owner’s expense. ComMmuNITY ACTIVITIES Where the employer must assume responsibility for the housing of his employes it may also be his duty to assist in the provision of a certain community life. Individual freedom is precious and should be carefully guarded. But in isolated communities and towns where there are no agencies to provide for community needs the employer can hardly avoid his responsibility. The range of these activ- ities is wide and may include codperative stores, health work, gardens, better parks and playgrounds, clubs, and schools. In a large city educational and recreational activ- ities are provided by the community and the codperation of existing nursing agencies may be secured to take care of THE EMPLOYER AND THE COMMUNITY 283 the health work. When the industry is remote, or a large factor in the community, the employer may through the services he renders the people develop a sense of civic re- sponsibility. Reducing the Cost of Living by the Codperative Store. — Every employer is directly concerned with the purchasing power of the employes’ wages. ‘“‘ The value of wages depends not upon the amount of money in the pay envelope, but upon what the money will buy.’”’ This has been realized by many employers when it has become evident that in spite of wage increase employes were still having difficulties in making ends meet. The Dodge Manufacturing Company sought to solve the problem by organizing an employes’ codperative club to start a “commissary.” A survey of the city showed that there was an unnecessary multiplication of small stores. In joining the club each member author- izes the paymaster to pay the club treasurer five dollars, and to pay a similar amount each time the member draws goods amounting to more than his balance in the club treasury. No deliveries are made and articles are sold in uniform amounts. Any profits go to the Employes’ Bene- fit Association, but there is no intention to make the store do more than carry itself. The effect on the community of this store has been to bring down the prices of staples which are handled by both commissary and regular stores. Another attempt to reduce the cost of living for employes is that of the Codperative Store of the Metropolitan Life Insurance Company of New York City. The employes run the store, but the rent and salary of two clerks are paid by the company. Goods are sold for cash only, and at a price which will cover the overhead costs, which are not paid by the company. The annual business done is about $120,000. This store handles clothing as well as foodstuffs. Company Store in Small Community. — In isolated com- munities the company store had early origin. In England 284 THE HUMAN FACTOR IN INDUSTRY the “truck” system is the term which denotes payment in kind or otherwise than in cash. Twenty States of the United States have passed laws which regulate this prac- tice to some extent. ‘‘ Cash means freedom.” ” It per- mits the wage earner to buy where and what he wants, but even with this safeguard a store may be a dangerous weapon in the hands of the employer in an isolated com- munity. In the city, employes on strike may trade at an- other store, but this they are unable to do when the com- pany’s store is the only available source of supply. Very little information is available as to the present status of these stores. The employe is protected to some extent by legislation, but various reports tell us that such stores still exist in modified forms in mining and steel towns. Thomas Darlington reports as follows after a visit to a Colorado Fuel and Iron Company’s* operations : In every town, and especially in those located at a distance from centers are to be found excellent company stores where almost all the necessaries of life can be purchased at reasonable rates, of better quality and at lower prices than could be given by non- company stores. In the isolated community we find the greatest need for true codperation. Company stores in Russia have become a part of the Codperative Movement and their example might be followed here. The employes of one industry living together in a small community ought to form a suit- able group for codperation. The members would be closely bound together by social as well as business intercourse. The mine workers of Illinois have organized very successful truly codperative stores. Here the union as well as the common occupation have been the basis of success. The benefits arising from codperative purchasing and distribution which would make it pay the employer to encourage such organizations are stated by Mr. J. P. Warbasse as follows: THE EMPLOYER AND THE COMMUNITY 285 In some industrial communities it has been shown that by co- operative organization it is possible to increase the worker’s wage the equivalent of one dollar a day. . . Codperative purchasing and distribution mean better goods, freedom from adulterations, free- dom from short weights and saving in the expense of advertising. It also means better contentment among the workers and more stability. ... The incentive to move is diminished. Tho incentive to become established and create a permanent home is increased.® Educational Value of So-called Codperative Stores. — Although a majority of codperative stores in the United States have failed because of lack of leadership, poor manage- ment, lack of legal safeguards and unfavorable environ- ment,“ there seems to be no reason why the employes of one company should not furnish a sufficiently homogene- ous group for a successful codéperative store, providing the other difficulties are overcome. The employer should be able to furnish the much needed advice in regard to financial matters and general guidance. The great number of so- called codéperative stores in part financed by the employing company are not truly “ codperative,” but they are steps in the right direction. Pending the development of co- operative buying on a large scale, as is done in Great Brit- ain and in continental countries, much can be accomplished by attempts fostered by industrial establishments. Gardens for Employes. — The problem of providing gar- dens has been considered by some companies to increase the contentment of the workers and to improve the ap- pearance of the community. The ideal of a house and garden for every family is absurd, because what is play for some is drudgery for others. In about one third of 233 company-housing schemes gardening was encouraged by means of prizes.19 This is done most often in isolated in- dustrial towns, but one example of an industry in a large town which has laid emphasis upon gardening to beautify the city and at the same time to provide a desirable form 286 THE HUMAN FACTOR IN INDUSTRY of recreation, is the National Cash Register Company at Dayton, Ohio. The Boys’ Garden Company was incor- porated in 1910, with forty boys from ten to fifteen years of age as stockholders, and a capital stock of forty dollars. The parents of these children need not be employes of the company. A two-year course in gardening is given under an expert gardener. The produce is sold to the officers’ lunch room and prizes are awarded for the best garden and the best bookkeeping. This company also offers prizes for the best flower garden. A few isolated instances such as this may be found, but in general such work is better left to one of the various gardening associations.* In remote communities, and especially where foreigners are employed, one finds much encouragement being given to gardening. Prizes are often offered for the best garden. The American Bridge Company offers twelve prizes, one $10.00 first prize, one second prize of $5.00, and ten prizes of $1.00 each. The foreigners know how to raise vegetables and flowers. They like it and it helps to reduce the cost of . living. For many years the United States Steel Company corporation has offered special inducements to its foreign employes to utilize vacant ground for raising vegetables, and similar encouragement is often given to the develop- ment of home gardens.. The quantity of vegetables raised is frequently beyond the needs of the community, and much is wasted. The Oliver Mining Company solved this prob- lem by building several vegetable cellars in its mining towns in the Minnesota Range. Individual bins with individual lockers were found to be most satisfactory.” Health Work. — The help of the employer in maintain- ing the standards of a small community is sometimes neces- sary. The Ludlow Manufacturing Company built an ex- cellent little hospital and presented it to the town of Ludlow. The company meets all the expenses incident to the care of the people of the town, most of whom are employes THE EMPLOYER AND THE COMMUNITY 287 of the company. Another company which interests itself in health work is the United States Playing Card Com- pany, which employs visiting nurses who spend part of their time visiting in the houses of sick employes and their families.“6 The Clark Thread Company of Newark, New Jersey, employs a visiting nurse who is mainly an instructor giving nursing care when necessary. She teaches cooking, infant care, the feeding of children, home nursing, gardening and marketing.“”7 The Bush Terminal Company also real- izes the advantage of extending health work to the com- munity, so at Terminal City we find a hospital and dispensary built by the company.* The New Jersey Zinc Company at Palmerton, New Jersey, employs a settlement worker who speaks foreign languages and who helps to im- prove the housing conditions.“ An example of excellent community health work in Southern mill towns is given by Mrs. Laurie Jean Reid, Chief Nurse at Extra Cantonment Zone No. 14. Mrs. Reid found that one manufacturing company with five cotton mills in Georgia had done no public health work. As the result of her efforts, the company has established at each of its villages a milk station and a dispensary in charge of anurse. There is also a day nursery in charge of a matron, and in one particularly isolated village the com- pany has put up a hospital. In one village a laundry is being built and a sterilizer installed for the village and a bath house with plunge and shower.*° The Colorado Fuel and Iron Company has stationed experienced nurses in several of its camps. These women, in addition to their regular nursing service, go into the houses of the employes and teach hygiene. The health work of the United States Steel Corporation and its subsidiaries includes a visiting nursing service. The services of the nurse are offered free by the company to the families of the employes, but are not forced upon them. 288 THE HUMAN FACTOR IN INDUSTRY No nurse ever visits a house unless requested to do so by a member of the family. . The Tennessee Coal, Iron, and Railroad Company has added to its health work a dental clinic for the families of employes. A dental surgeon has been employed to care for the teeth of the children in the various schools main- tained by the company. No dental work is done without a written permission from the parents, and it is interesting to note that during one year in not a single instance was permission refused.” At some plants special courses in practical housekeeping are arranged by the company for the benefit of the wives and children of employes.” The visiting or district nurse is usually the teacher for these classes. Some companies provide houses or special rooms and equipment for the maintenance of this work. In other instances visiting housekeepers are employed who go into the house and teach cooking and housekeeping. This kind of service is partic- ularly valuable where many foreigners are employed who do not know the proper way to prepare many kinds of cheap foods. It is the duty of the visiting housekeeper to assist in reducing the cost of living by giving instructions in appe- tizing ways of cooking the cheaper articles of diet. The Consolidated Coal Corporation of Virginia employs a die- tetics teacher who goes into the houses of the employes. Recreation. — Provision for recreation takes the form of parks, swimming pools, club houses, or playgrounds. At Terminal City we find provisions for bowling, billiards, basket ball, baseball, tennis, and outdoor recreation in the summer time.“8 The New Jersey Zinc Company at Palmer- ton provides a kindergarten at which those women who work and who have no one with whom to leave their chil- dren can bring the little ones for the day’s stay. There is also a neighborhood house which acts as a club for the employes, but is used by others as well. It was patronized THE EMPLOYER AND THE COMMUNITY 289 during one year by more than 14,000 grown-ups and chil- dren.“* The most important community work of Hershey, the noted Pennsylvania chocolate town, is Hershey Park, which is open to all. In this recreational area are included a swimming pool, dancing pavilion, and lawns set with ap- pliances for athletic sports..1 The Eastman Kodak Com- pany also provides ‘‘ Kodak Park” for the use of all citi- zens of Rochester. The fact that the employes do better work when they know an interest is being taken in their families led the Endicott Johnson Company to build a 2,000,- 000-gallon swimming pool which is reserved for the use of children during the daytime. The Ludlow Manufacturing Company has built a club house in which there are a gym- nasium, bowling alleys, swimming pools, and reading room, and near by is the athletic park for outdoor sports and chil- dren’s recreational classes.*® Out-of-door recreation is emphasized in both cotton and mining towns. At Saxon Mills, Spartanburg, S. C., there are volley ball, tennis, basket ball, and swimming for every one. There is also a community building surrounded by a play- ground. The fact that “ vigorous childhood leads to vigorous manhood ”’ has led the various subsidiaries of the United States Steel Corporation to give much attention to play- grounds. The first playground in connection with the Steel Industry was established in 1910. In 1914 there were 101 playgrounds at the operations of the Steel Corporation. In most cases they are owned, operated, and maintained by one of the subsidiary companies. In a few cases they have been turned over to the local playground association, the company still contributing to the maintenance. These playgrounds are open to all children of the neighborhood. In the evenings the playgrounds are used for music, mov- ing pictures, and other entertainments for the grown-ups. The cost of a playground is small (between $118 and $120 U 290 THE HUMAN FACTOR IN INDUSTRY are the figures given by the Ellsworth and Cokeburg Col- lieries for 1913) and the results far-reaching. The standards of child life—physical, mental, and moral —are raised and the results are reflected in more healthful living conditions in the home.™ The recreational activities of the Colorado Fuel and Iron Company include moving picture shows, playgrounds, and other activities planned with the assistance of the Y. M. C. A. secretaries and committees on recreation and education created by the industrial representation plan.” In contrast to the glowing tales of playgrounds for the children are the conditions in Homestead, one of the earliest steel towns. A recent article states : “‘ Little children played on the sidewalk flush with the four-tracked railroad, to get their last tire before tumbling on to the family mattress.” This same writer says of the works of the National Tube Company near Lorain, Ohio: “ The street car picked its way through an alley not wide enough for a sidewalk, in addition ...a playground for the children who darted in and out. The shacks and houses, the children’s homes, lined the street so close that the steps were set on the brick paving. The backyards of cinders ran down to the rail- road, or their outhouses met outhouses of other shacks which faced the railroad.” Thus we have two instances of steel towns in which the employing company has not assumed the responsibility of maintaining a healthy commu- nity life, and on the other hand the town has failed because the inhabitants are not possessed of adequate resources.® The club house also takes an important part in community recreation work when its use is not limited to the employes of the company. The club house of the Oliver Iron Min- ing Company is open at all times to members and their friends. The Boys’ Club of the Lackawanna Social Center is an “open” club. Any boy in the village is welcome. The social center of this company also provides club facilities THE EMPLOYER AND THE COMMUNITY 291 where employes and non-employes can spend their leisure hours profitably. In 1907 a club house was built at Burham by two steel companies, with the assistance of individual subscriptions. This is really a community center and is managed by directors composed of people from the neighbor- hood. Another example of a community club house is that built by the Cleveland Cliffs Iron Company, at the mining town of Gwinn. The membership for non-employes is six dollars a year, while employes pay three dollars’ annual dues. There is a small membership fee of ten cents per month for boys of the community, who have the privilege of the game and reading room and swimming pool at certain stated times. Education. — The employing company in a corporation- owned town may also have to assist in educational activ- ities. One instance of this is that of Hershey, where the chocolate factories are located. The country schools of this district were united and placed on a graded basis. Mr. Hershey built and equipped a school costing $20,000 in 1914. The Hershey public library is also available to the community.* Educational work is emphasized by the Colorado Fuel and Iron Company. There are no “ company ”’ schools, but the company coéperates with the school board to secure the best advantages. The property in the vicinity of its campsis usually owned by the company, so it bears most of the expense of maintaining the schools. An interesting ex- periment has been tried at the coal-mining camp at Sopris, Colorado. There the children are given credit for instruct- ing their parents at home. Gradually the school system is being extended to include high school work.” CoNCLUSION The fact that industrial efficiency depends so much upon the healthy, happy life of the employes outside of working 292 THE HUMAN FACTOR IN INDUSTRY hours has led some employers to take an interest in the house the employe lives in, the recreational, educational, and health facilities which are available for him and his family. But there are certain important principles which every employer must face squarely. What the employe de- mands first is fair wages. Any substitute for this will fail. What the employer wants is efficient, permanent employes. If the living conditions in a community are such that the payment of fair wages alone will not secure decent living conditions for his employes, economy and justice make him responsible for improving these conditions. In the large city an employer can secure decent living conditions for his workers by making the best transportation facilities avail- able, having an information service in regard to available accommodations and perhaps assisting in forming a co- operative store. His responsibility in the isolated com- munity is greater, and so also are the dangers of his assum- ing that responsibility. Some pitfalls may be avoided if the method of selling houses is such that the worker will not lose credit for payments if he leaves the company; if leases are not automatically and immediately terminable in case the employe leaves the company or there is a strike; if the houses provided are hygienic and comfortable, and if there are no restrictions which impair freedom, such as prohibiting orderly meetings of union organizers. The em- ployer may find it necessary to provide educational, recrea- tional, and health facilities and also a store, but if wages are sufficient to provide the necessary funds, and interest in community is aroused, the employer may soon abandon his direct efforts, let the people decide what they want and give them an opportunity to manage the thing themselves. He may in this way become a strong force for the improve- ment of the general health and happiness of the community without facing the danger either of paternalism or of laissez- faire policy. CHAPTER XI INSURANCE, SAVINGS, AND LOANS Contingencies Which Threaten Each Individual. — Sick- ness, accident, death, old age, and invalidity are contingencies in the life of the individual. But when they will affect any given individual is uncertain. A person is sure to die, but the age at which his death will occur cannot be predeter- mined. Almost everybody will be sick at some time or the other, but again the uncertainty of the time or the frequency and extent of illness make it difficult for an individual to provide out of savings for the lost wages and the cost of ilmess. The basis of all insurance is to spread over a group of persons a loss that may affect any one of them, and is certain to affect some of them within a given period. Shifting Basis of Mutual Help. — In primitive society the problems of the individual were those of the group, and responsibility was assumed by the family or tribe for all contingencies. With the growing complexity of society, the basis of mutual help shifted from the blood tie to the guild, to the trade group, or economic class. Mutual Asso- ciations and Aid Societies were formed to provide for the hazards which confronted the workingman and to distribute his losses among the group. Societies for Mutual Aid. — Societies for mutual aid are known by different names in various countries. Great Britain has Friendly Societies, Trade Union Benefit Socie- ties, and Shop Clubs; France has her Sociétés de Secours Mutuels ; Germany, Local Sick Funds, Establishment Funds, and Mutual Aid Funds; in the United States, the corre- 293 294 THE HUMAN FACTOR IN INDUSTRY sponding organizations are the Fraternal Societies, Estab- lishment Funds, and Trade Union Benefit Schemes.1 Insurance Companies. — These codperative efforts have reached only a portion of the working class. In addition, mutual and stock insurance companies in Europe and the United States supply the wage earner with needed protec- tion against financial embarrassment. To date, these have sought especially to meet the contingency of death and old age, but they are rapidly broadening their field to include sickness, accident, and invalidity. ‘The Prudential” of London is to-day one of the largest carriers of sickness in- surance in England. “ Industrial Insurance,” as adminis- tered by the life insurance companies in the United States, differs from “Ordinary” life insurance only in that the pre- mium is paid in small weekly installments and that the pre- miums remain constant while the amount of insurance varies with the age. The cost of this type of insurance is necessarily higher than “ Ordinary ”’ insurance because of the expense of premium collection and the higher mortality rate of the class of people taking out these policies. In spite of this, ‘“‘ Indus- trial Insurance ’’ has been used extensively by the wage-work- ing classes to provide protection for the whole family, and in particular for women and children who are excluded from membership in industrial mutual benefit schemes. ‘ Group Insurance ” is another method by which the insurance com- pany reaches the industrial classes. It consists of a blanket policy issued to an employer, covering one or more of the risks to which the employes of his establishment are subject. The premiums for this form of insurance may be paid by the employer alone or by the employer and employes jointly. Because premiums are collected directly from the employer in bulk, the cost of Group Insurance is proportionately less. Legislation. — The interest of society in the problem of mutual aid is evidenced by the passage of Social Insurance Laws by European governments, which make for the protec- INSURANCE, SAVINGS, AND LOANS 295 tion of wage earners. In the United States, legislation of this type has dealt so far only with accidents. Since 1909 Workmen’s Compensation Laws have rapidly extended to thirty-eight States, the Territories of Alaska and Hawaii, the Island Possessions of Porto Rico and the Philippine Islands. A Federal Law provides for half a million employes.” Standards by Which Insurance Carriers may be Judged. — It is important to discuss the part which the manage- ment of industrial plants should play, both now and in the future, in developing plans for the protection of their work- men against the hazards of industry. These questions are now being considered by employers because they appreciate that the employe freed from dread of the loss of earnings is a more efficient and contented worker, and because the industrial unit has been found convenient for the adminis- tration of plans of protection against such losses. Co- operation on the part of the employer in providing insurance need not savor of paternalism, whether he pays the premium onaGroup Insurance policy, or helps the employes to main- tain their own mutual benefit society. Conditions of work and mode of employment are frequently factors contribut- ing to the breakdown of the human machine. When the breakdown comes it is only just that industry should take its share of the responsibility.’ The points to be borne in mind in the consideration of methods of protection or insurance are as follows: (1) there must be as wide a distribution of risks as possible; (2) admin- istration should be by experts; (3) the benefits must be ade- quate; (4) the cost of administration should be low; (5) the freedom of the employe to choose employment where he pleases must not be hampered by his participation in any insurance scheme. 296 THE HUMAN FACTOR IN INDUSTRY SICKNESS INSURANCE Cost of Illness to Industry. — The frequency with which illness occurs, the loss of time and the financial embarrass- ment which it causes, and the devastation it produces on the nation and industry by lowering power of resistance and efficiency, have caused the development of methods of partial compensation for lost wages. Sickness surveys made by the Metropolitan Life Insurance Company, covering 600,000 individuals, show that an average of 2.02 per cent of the popu- lation studied were sick, while 1.88 per cent were unable to work, and that the average annual loss of time was 5.6 work- ing days. The Social Insurance Commissions of California and Connecticut estimated the time lost annually by each wage earner through illness as six days,’ while the Ohio Commission puts the average at nine days.® Present Extent of Sickness Insurance. — It is difficult to estimate with any exactness the extent of sickness insurance among the wage-working population. But from the study published in 1908 by the United States Department of Labor? and later investigations made by Sydenstricker for the United States Public Health Service,’ it would seem that the number of wage earners protected is small and that the amount of protection is inadequate. Trade-Union Funds. — Trade unions have made attempts through voluntary action to insure their members. The majority of these schemes give benefits in case of temporary disability. This usually includes disability resulting from sickness and accident. The Sydenstricker study indicates that about 85 per cent of the national and international unions had sick benefit schemes in some of their locals. Of the 530 local union benefit funds included in the Bureau of Labor Statistics study, 308, or 58 per cent, paid sick benefits. But labor unions do not in all probability cover more than 30 per cent of the industrial workers. The periods for INSURANCE, SAVINGS, AND LOANS 297 which benefits are paid vary, but about 70 per cent of the temporary disability funds pay for thirteen weeks or less. The amount of cash benefit is from one dollar to fifteen dollars per week, but the average amount paid per day for temporary disability, according to available information, is about eighty cents. Only thirty-three of these local funds investigated include any provision for permanent disability. Fraternal Societies. — The fraternal societies have achieved limited success in the field of sickness insurance. Tn 1915 thirty of the 179 National Fraternal Societies offered sickness insurance. The sick benefits are usually $5.00 a week for a period varying from twelve weeks to nine months. Employes’ Benefit Associations. — An effort has been made by Mr. Sydenstricker to give a conservative estimate of the number of manufacturing and mining establishments having mutual benefit funds in the United States. He states that although the answers to his questionnaire indi- cate that 19 per cent have such funds, a more correct estimate is probably 10-12 per cent. The reason for this lower esti- mate is that probably the large majority of those not replying to the questionnaire had no such funds. Of the 339 funds studied, two thirds paid benefits for thir- teen weeks or less. This is a situation somewhat similar to that found by the Bureau of Labor Statistics. In its study of 429 funds, 55 per cent paid benefits for thirteen weeks or less. The predominant weekly rate for temporary disability was five or six dollars. Only about 12 per cent of the 461 funds studied by the Bureau of Labor Statistics pay permanent disability benefits. Basis for Employes’ Benefit Association. — Perhaps the most thorough study of Mutual Benefit Associations was that of 579 made by Mr. W. L. Chandler of the Dodge Manufacturing Company.® From this investigation certain conclusions were reached and tried out in the Dodge organ- 298 THE HUMAN FACTOR IN INDUSTRY ization. The results of this survey answer several problems, as follows: (1) A benefit association increases the efficiency of its members. It is a means of eliminating some of the economic waste due to ill- ness. (2) To be effective, an association must be sound and command the confidence of the employes. The rate should be safe so that assessments are not necessary. Actuarial guidance is necessary. (3) It is better to make the system so attractive that all will want to join than to make it compulsory. The experience of the Dodge Association and others shows that a consistent and enthusi- astic sales effort by the secretary will result in about a 70 per cent membership. ‘ (4) The association should be managed for and by the employes with the counsel and codperation of the management. (5) The employer may allow the officers of the association to transact their business on company time, but the members should carry the balance of the cost. If the employer assumes part of the premium it may seem paternalistic. The Dodge Manufacturing Company allows the officers to transact their business on company time. (6) The question of retention of membership in an association when an employe leaves or is laid off should be given careful con- sideration. Unless the member remains within the same locality supervision is difficult. The Dodge Association has solved this - difficulty by terminating the membership of any employe when he leaves the employ of the company, except in case a member is tem- porarily laid off. (7) There may be various classes of members, each member electing benefits which best suit his needs. The total benefit received by any one person should not exceed 90 per cent of his wage. The Dodge experience shows that an effort should be made to induce members to carry at least 50 or 60 per cent of their average wage. Because of the varying conditions it would be an impossi- bility to set down hard and fast rules for the organization or reorganization of an Employes’ Benefit Association, but Mr. Chandler’s general principles, based on wide experience, cannot but be helpful to any one attempting to establish a new or increase the efficiency of an existing association. INSURANCE, SAVINGS, AND LOANS 299 Success of Joint Management. — It is only within recent years that employers have begun to realize that by lending their codperation the employes’ benefit association can be made a much more effective instrument for establishing that necessary confidence and good-will between employer and employe which result in decreased absenteeism and labor turnover. The Bureau of Labor Statistics made a study of the rela- tionship between management and membership and found that where the funds were managed by employes, 30 per cent of the employes were members; where managed by employers alone, 75 per cent of the employes were members ; and where managed jointly, 66 per cent of the employes were members.”? These figures point to apparently better results in associations managed by employers. In the long run the objects and aims of Mutual Association may be better conserved if the members have the opportunity and gain the experience of joint management or management with codperation of the employer. The International Harvester Company’s Mutual Benefit Association is managed jointly by a board of trustees, one half chosen by member employes and one half named by the company. The company contributes $25,000 per year if 50 per cent of the employes are members, and $50,000 if 75 per cent are members. Since the found- ing of the association in 1908, the larger sum has been contributed every year and there has never been any deficit in the fund. Membership is voluntary.’ The membership in the association of the Cadillac Motor Company is voluntary. The company pays all expenses of administration. The association is in charge of the super- intendent of the welfare department, with an advisory com- mittee, one half of which is selected by the management and one half elected annually from among the employes. The judgment of this committee is final in all appeals.” 300 THE HUMAN FACTOR IN INDUSTRY The Huyck and Sons Employes’ Benefit Association was established in 1911 with about 98 per cent of the employes as members. It is operated by two committees, one repre- senting the men and one the women. Each committee is made up of members representing the employes and the ‘company. The company pays all the expenses of accident compensation and pensions, and the employes contribute 1 per cent of their wages toward the cost of sickness insurance.” Employers’ Judgment of Mutual Benefit Associations. — Many corporations have already passed favorable judg- ment upon the results of an Employes’ Benefit Association. The Cadillac Motor Car Company, the International Harvester Company, F. C. Huyck and Sons, and numerous others give the results of the Employes’ Benefit Association in rather definite language as follows: It has been successful in preventing malingering, it brings the employe back to work with a lighter load of debt, it breeds the spirit of man and company coéperation, encourages contentment by teaching self-reliance, and it is worth more to the company than it costs. Group Insurance. — Insurance companies are develop- ing “ Group Insurance” to provide both life and sickness insurance to meet the problem of insolvency which faces the detached mutual benefit association. The employer usually pays the life insurance premium, but a contributory plan has proved successful for sickness insurance. In every establishment where this plan has been followed, over 80 per cent of the total number of employes have voluntarily enrolled. It is not necessary that every employe be en- rolled, but if the plan is attractive the per cent joining will ordinarily be high enough to make insurance feasible. Group sickness insurance is of such recent origin that it is difficult to find any statement of opinion as to its results ex- cept ina very general way. Mr. Feiss of the Clothcraft Shops INSURANCE, SAVINGS, AND LOANS 301 in Cleveland, after an investigation of almost every known scheme of insurance, concluded that schemes conducted with- out the aid of experts were apt to fail in their purpose. The Clothcraft Shops placed all of their insurance, including accident and sickness, old age, and life insurance, in the hands of an insurance company, with a department within the plant organized for their supervision and administration." Standards of Evaluation for Various Methods of Sickness Insurance. — Each type of insurance should be evaluated according to the opportunity it offers for the distribution of risk, economical administration, supervision by experts, the degree to which it permits freedom to the insured, and the adequacy of the benefits provided. Distribution of Risk. — The trade union may be able to manage simple forms of insurance which do not demand heavy reserves and large investment. Although there is not very wide distribution of risk in a small local union the members are exposed to similar hazards. The habits of members are known and malingering is more readily pre- vented. The local fraternal society, which is the usual carrier af sickness benefits in fraternal orders, also lacks wide distribution of risk. ‘ The strength of the fraternal associ- ation lies in a certain sympathy, even sentimentality, which binds the members together in strong bonds, but which ob- secures the judgment of hard mathematical facts and is incon- sistent with the necessary cold-blooded calculation and busi- ness direction which assures the wise management of funds.’’!® The statement of many employers indicates that employes’ mutual benefit schemes organized in the industry with the codperation of the employer have the advantage of econ- omy and the easy prevention of malingering, and should have no difficulty in providing temporary disability benefits in case of sickness and accidents. But here again the dis- tribution of risk may not be sufficiently wide. An epidemic, before a reserve has been developed, is certain to result in 302 THE HUMAN FACTOR IN INDUSTRY the bankruptcy of an employes’ benefit association, even if the premium is ordinarily adequate. It is possible that these associations may serve as a nucleus for the provision of more extended benefits under the group plan, whereby the benefit association would be reinsured by a regular in- surance company. The cost would be low, but rates would be determined and surplus invested by experts. Group insurance is the only type of insurance in which solvency is secured by wide distribution of risk and expert administration. Benefits. — Neither the trade union, fraternal society, nor establishment fund provides for sufficient benefits. Because of the danger of malingering, the payment of full salary has not been found feasible. The Metropolitan Life Insurance Company, however, has found it possible to insure its em- ployes, under a group plan, for a benefit equivalent to two thirds of the weekly wage for twenty-six weeks, with a re- duced benefit continuing to age 65.1° Restriction of Liberty. — No form of insurance will meet with success and accomplish results which restricts the liberty of the employes or savors of paternalism. The Employes’ Benefit Association organized properly, with the coéperation of the employer but controlled and supported by the employes, seems least likely to restrict liberty. The fear that the system of insurance may be used in labor dis- putes as a weapon against strikes is a real one that must be faced. If this difficulty is met, employers will ordinarily be glad to contribute to a voluntary system of sickness in- surance which they believe to be actuarially sound. The benefit association, if protected by reinsurance, is safe as well as democratic. Province of Sickness Insurance in United States. — In the United States sickness insurance has accompanied the more important and widespread campaign for the improve- ment of health conditions. The province of insurance is INSURANCE, SAVINGS, AND LOANS 303 not to prevent sickness, but so to distribute the loss conse- quent upon illness that a substitute is provided for wages during the period of disability. ‘It is thus simply the hand- maid of a larger vision of society which sees the possibility of dealing with social ills, not by giving compensation for their effects, but by eradicating their causes.” ”” ' Lire InsuRANCE Life Insurance Inadequate. — The death of the bread- winner invariably causes economic loss to the family, espe- cially in the case of premature death. Deaths under the age of forty-five constitute nearly 50 per cent of all deaths in the professional classes, 60 per cent in personal service, 55 per cent in manufacturing and mechanical industries, and 68 per cent among laboring and servant classes! The work- ing class is largely unable to provide for other than present- day needs unless that provision is cheap, and if one adds to this the fact that the motive for taking out life insurance is an unselfish one, it becomes evident that the vast majority of the population have little or no protection against the distress which commonly follows the death of the wage earner. That some form of life insurance is needed is abundantly testified to by one large automobile company carrying group insurance. This company kept close record of the conditions in the homes of its employes. Out of the first fifty claims that were paid, it was reported that there had been only one case in which the claim money was not urgently needed to prevent immediate distress. Another large company studied the need for the claim money in over one hundred homes, with practically the same result. Present Provisions. — There have been various attempts made to offer the worker a method of protecting his de- pendents. Insurance companies offer ordinary life and industrial policies. Ordinary life insurance is usually issued 304 THE HUMAN FACTOR IN INDUSTRY in sums of $1000, or multiples thereof, with premiums payable annually, semi-annually, or quarterly. In 1918 approxi- mately 10 per cent of the population in the United States, or 10,000,000 persons, held ordinary life-insurance policies amounting to about $20,000,000,000.19 But although this form of protection is popular among the middle classes the vast majority of wage earners are unable to save the required amount for the premium. In order to make life insurance available for a larger part of the population, industrial insurance has been developed which provides protection for every member of the family from age 1 upwards. The number of industrial policies issued by insurance companies is large, about 41,610,168 of these policies being in force in 1918. Mutual associations, trade unions, and establish- ment benefit societies have also attempted to provide death or funeral benefits. The fraternal societies usually issue life insurance. The expenses of administration are com- paratively low. Employes’ Benefit Associations. — The average insurance carried per certificate by Fraternal Societies is nearly $1000. The policy-holders are in part tradesmen and those engaged in mercantile rather than in industrial pursuits.2® Ninety per cent of the establishment funds included in the United States Department of Labor study pay death benefits, the predominant amount being $50 and $100.7 Group Life Insurance. — Group insurance originated in the field of Life Insurance because of the need for more effective and more economical means of safeguarding the family of the wage worker. There is reason to believe that group insurance, with its financial soundness and manage- ment by experts, will be adopted as the standard method of providing the wage earner with protection. It is issued not only to cover death but may include also sick and acci- dent benefits. Under the plan, employes of one employer may have their lives insured for amounts of not less than INSURANCE, SAVINGS, AND LOANS 305 $500, nor more than $3000. In the large majority of States a medical examination is not required where the group in- cludes more than fifty individual lives. A blanket policy is issued to the employer, and certificates of insurance are furnished for each employe covered. Group insurance is generally written on the low cost One Year Renewable Term plan; the premium usually paid by the employer approxi- mates about 1 per cent of the total amount of insurance provided. The amount of life insurance awarded each em- ploye may be graduated on the basis of length of service, salary, or class of employment; thus representing both a reward for past services and an incentive for future services. Another method is to give each employe a uniform fixed amount of insurance. This form of insurance was inaugurated in 1912 by a com- pany which issued a $7,000,000 policy on the lives of the em- ployes of the Montgomery Ward Corporation of Chicago. In 1920 all records were broken when over $50,000,000 insurance was issued on the lives of 70,000 employes of the General Electric Company. Evaluation of Various Forms of Life Insurance. Trade Union and Establishment Funds. — Neither the efforts of the establishment funds nor of the trade unions can be digni- fied by the term life insurance. The more important criti- cisms of these efforts are that the benefits are so small that it is not life insurance at all and that most of the funds are not actuarially sound. The danger that these funds will fail is lessened if there is a continual entrance of new members, but experience has shown that this is difficult to obtain. The consequent cost to the persistent members becomes practi- cally prohibitive. The more serious criticism is perhaps that the economic problem of death is not met. One of the ex- ceptions to this is the International Harvester Company’s benefit scheme, which provides a substantial death benefit of two years’ average wages, but not more than $3000. x 306 THE HUMAN FACTOR IN INDUSTRY Fraternal Insurance. — Although there are no figures, the general opinion is that fraternal societies do not provide life insurance for those most needing it, the low paid and un- skilled. This form of insurance is often actuarially un- sound. Group Life Insurance. Costs and Results of Group Life Insurance. — Group life insurance is the only system under which the wage worker’s family is adequately protected through the industry by an organization in which the basic principles of insurance are followed. It has developed chiefly as an employers’ proposition and is usually furnished on a gratuitous basis. The employe’s motive for taking out life insurance is an unselfish one. Because of this fact and the expense involved, this form of protection does not lend itself so well to the development of a contributory plan. Where it is combined with a contributory sickness policy any possible tendency to paternalism is overcome and a real provision for the dependents of the wage earner is made. This is the form of insurance which the Metropolitan Life Insurance Company offers to its home-office employes. The life of every employe whose salary is less than $5000 a year, who accepts the offer of the group disability policy towards which the company pays a percentage of the premium vary- ing according to the years of service of the employe, is in- sured for an amount equal to one year’s salary up to $2500, the company paying the full premium. There is an arrange- ment by which an employe leaving the service of the com- pany can secure insurance without medical examination. The offer to the field force is similar, but the maximum of the insurance is in this case $2000." Experience has demonstrated that an employer’s return on this group life insurance investment will vary in pro- portion to the extent to which his employes are brought to understand group life insurance and appreciate its benefits. The best results cannot be secured if the group life transac- INSURANCE, SAVINGS, AND LOANS 307 tion is limited to the issuance of the policy and certificates, the collection of premiums, the payment of death claims, and satisfactory handling of the limited clerical work in- volved. To insure the employer a satisfactory return on his investment, it is necessary that the group life idea be “sold ” to his employes. At least one company has created an organization which undertakes to reach not only the em- ployes, but systematically and regularly to carry back into their homes and to their families, an appreciation of the em- ployer’s adoption of group life insurance. The increasing popularity of this insurance is perhaps the best indication of the returns that employers are receiving from such an expenditure of one or two per cent of their pay roll. The following comments by employers are of interest: “We think the benefits derived from the proposition warrant the expenditure and are very glad that we made the arrange- ment, both from a humanitarian standpoint and from the fact that it increased the satisfactory relations between the men and the company.” ‘It is the best thing I have ever had anything to do with in my business experience in dealing with employes. If it cost twice what it does I would not hesitate to keep it.’ 24 ACCIDENT COMPENSATION Some Accidents Inevitable.— The experience of many years indicates that after all possible safety devices have been installed, a certain number of accidents are inevitable.” Basic Principle for Industrial Accident Insurance. — Almost all-countries agree that the entire cost of compensa- tion for industrial accidents should fall upon the employer. The conception of “‘ trade risk” underlies the development of this doctrine as opposed to the old theory based on “ the fellow-servant rule,” ‘the assumption of risk” and “ con- 308 THE HUMAN FACTOR IN INDUSTRY tributory negligence.” The principle of “trade risk” is based on the fact that many accidents occur through the fault of no one, but simply as the result of certain industrial processes, and that because of this, industry and not the em- ploye should bear the burden.! Development of Compensation Principle in the United States. — The transferring of the financial responsibility from the employe to the employer is the compensation prin- ciple. To provide compensation is the duty of accident insurance. Since 1909 the Workmen’s Compensation move- ment has followed the example set by Europe. At the pres- ent time Workmen’s Compensation laws are in force in most of our States. The English system in which the em- ployer is allowed to select the agency through which he will insure has been followed in this country in preference to the German system of compulsory insurance in mutual societies. In thirty-one States the employer is given option as to the method of insuring his risk, and in twenty-nine States self- insurance is permitted.® Insurance Carrier. — As the financial responsibility of em- ployers for industrial accidents has become practically a universal principle, the method of insurance is important to the workingman only in so far as solvency and certainty of payment are guaranteed. It is a problem primarily for the employer, who will select the carrier insuring economy and efficiency. There is such a lack of uniformity of opinion even within a given State that it seems impossible to esti- mate the value of the various schemes. Self-insurance has been recommended as a means to force interest in “Safety First.” But this form of insurance is probably the least sound, financially, because of the long period over which payments must be made and because a very serious accident may make it difficult to meet obligations. The installation of safety devices probably accomplishes the same result as self-insurance, according to the experience INSURANCE, SAVINGS, AND LOANS 309 of the Portland Cement Company of California. The hazard in connection with the manufacture of cement pre- sumably was such as to warrant the Board of Insurance Under- writers to agree upon a rate of 5.7 per cent of the pay roll as a premium for a policy covering the risks, in conformity to pro- visions of the Workmen’s Compensation Act. This would have amounted to $2736.00 a month. As a result of the installation of safety appliances and intensive educational campaigns and the selection of risks through medical examina- tions of those seeking employment, $709.96 was paid in insurance premiums for ten months and twenty-five days.” Standards for Insurance Carrier. — All forms of insurance must be judged upon the basis of security, cost, and service. Self-insurance is really non-insurance, since there is no set reserve fund. Mutual insurance carriers will probably survive in the field of accident insurance, but the effect of compensation thus far indicates a gradual drift in the direc- tion of the strongest and most efficiently managed stock and mutual companies. To date, the monopolistic State funds, with few exceptions, have not succeeded in materially cutting the cost of insurance, but have in competition with private companies been very helpful. It is likely that the mutual association and the State fund will be allowed to com- pete. Whatever may be the ultimate development, it is reasonable to expect that industry will insist upon the greatest security and the best service at the minimum cost to itself.” Otp AGE INSURANCE OR PENSIONS Extent of Old Age Dependency. — Old age is inevitable and not an emergency, but the fact remains that there is a dependent population 65 years of age and over, who either because of low wages, misfortune of one sort or another, or individual shortcomings, have been unable to provide for the latter years of their lives. Approximately 1,250,000 of 310 THE HUMAN FACTOR IN INDUSTRY the people of the United States above 65 years of age are dependent upon public or private charity to the amount of about $250,000,000 annually. One person in 18 of our wage earners reaches the age of 65 in want. In the words of Lee Welling Squier, ‘‘ Hundreds of thousands of working people are already across the border into helpless and hope- less superannuation, tens and hundreds of thousands more are now pressing the border line, and the great mass of American working people are looking dawn the vista of the years to possible dependence upon charity during their last few years on earth; with millions of money being spent annually for the relief of this condition and very little for its prevention. Certainly the old age dependency problem is worthy of the most serious consideration and determined action.” * Causes of Old Age Dependency. — Professor Devine and other authorities attribute the largest part of old age depend- ency to misfortune. A.G. Warner places this at 72 per cent while the Massachusetts Commission on Old Age Pensions, Annuities and Insurance reports that 60.1 per cent of the old age dependency is due to extra expenses on account of sick- ness and emergencies, 25.4 per cent is due to business failures and bad investments, 3.2 per cent due to fire, leaving only 11.3 per cent of pauperism caused by intemperance, extrava- gance and fraud. “The doctrine of thrift .. . is usually received by the workingman with scant courtesy. He admits its desirability and longs for the opportunity to accept it, but in his present condition it is beyond him.” > The ordinary risks in living, the inequalities in heritage and opportunity among men, and the absence of an adequate minimum wage make it difficult to provide for old age. No matter how much is done to prevent premature superannuation by more adequate provision for the health of wage earners by vocational guid- ance and by securing special work for old men, the problem of superannuation will still remain. There will still be the INSURANCE, SAVINGS, AND LOANS 311 man who has been prematurely superannuated by excessive physical strain, sickness or accident, and there will always be the man who is unable to work because he is too old. Methods of Providing Old Age Insurance. — The prin- ciple of insurance is applicable to the contingency of old age in the same way as to the various other contingencies to which it is applied. The difficulties of provision for old age and the uncertainty of attaining it make it impracti- cable for the individual to carry his own risk. Various methods of applying the insurance principle to the hazards of superannuation have been developed. One of four methods may be chosen. (1) Voluntary annuity system. (2) Pension paid by mutual association or industry. . (3) Compulsory contributory old age insurance system. (4) Service pensions paid through taxation. Voluntary Annuities. — Annuities are sold by insurance companies as a business proposition in the form of deferred annuities, ordinary twenty-year endowment policies, in- dustrial twenty-year endowment policies, and various other schemes which cover the joint contingencies of death and old age. Notwithstanding the efforts of the insurance companies to popularize this method of providing for old age, very few of the working class are taking advantage of the opportunities offered. The reason for this is that the returns are too small and too remote to stimulate the in- dividual to the necessary self-denial and self-sacrifice. The insurance companies have devised a plan of extending group insurance to cover old age, by making life policies payable in annuities beginning at age 60 or 65. If policies can be issued to groups of at least one hundred people the benefit for the same premium can be increased 30 per cent. In Massachusetts the Savings Bank Insurance Act of 1907 is an attempt to furnish old age annuities to wage 312 THE HUMAN FACTOR IN INDUSTRY workers at the lowest possible cost. Wisconsin is the only other State providing for the sale of insurance by the State. This law was passed in 1911. Neither in Massachusetts nor in Wisconsin have any considerable number of people availed themselves of the State insurance schemes. The failure of the numerous attempts to combine old age pensions with life insurance proves that people do not volun- tarily purchase annuities. England has had the same experi- ence. After 40 years only a negligible number of persons an- nually purchase annuities under the post-office plan, but even though some better plan be worked out, there should always be a plan for the voluntary purchase of annuities for those who wish to make such provision. Mutual Associations. — Just as mutual associations have made efforts to meet the other contingencies which come into a wage earner’s life, so have they attempted to make some provision for oldage. Upto 1912 among literally thou- sands of labor unions, — national, international, and local —only 13 had even attempted any provision for the relief of their aged members. This statement, based upon the twenty-third annual report of the Commissioner of Labor for 1908 on ‘“‘ Workmen’s Insurance and Benefit Funds in the United States,’ shows how inadequately labor unions are coping with the problem of old age. Moreover, such provisions as are made are without regard to the requirements of actuarial science.” Fraternal Insurance.— Of the 182 fraternal benefit societies of a general or national character in the United States there are 42 which promise old age benefits. The provision is usually in the form of annuities beginning at the age of 70, which is after old age has already set in. These societies are also often actuarially unsound, the premiums being inadequate even for death benefits. It may thus be concluded that fraternal societies have not done much to relieve old age dependency. INSURANCE, SAVINGS, AND LOANS 313 Employes’ Benefit Association. — Plans for meeting the problem of superannuation from within industry nearly always provide for out-and-out service pensions, with no contribution from the employe. Among 461 Employes’ Benefit Associations only 5 provided superannuation bene- fits. Of these 3 are pension funds maintained entirely by the establishment and 2 are managed and supported jointly.’ Service Pensions Preferred. — There are many reasons why employers as well as employes prefer straight service pensions for wage earners instead of pension funds with contributions by employes. The impermanence of the wage earner’s employment and the strenuous objection of the workingman make any contributory scheme inadvis- able. Any deductions from wages restrict the liberty of the employe. He must submit to the will of his employer or lose his contributions to the pension fund. Another objection of the wage earner is that the deduction reduces his wages and his standard of living, and he denounces the sys- tem as un-American. This feeling may be the result of an individualistic philosophy, but whatever the reason it pre- vails and must be recognized. Extent of Employer’s Service Pensions. — Of all the great industrial employments none wears men out more quickly nor subjects them to greater hazard than transporta- tion. In this and a few other industries, such as navigation and mining, where hazard is great and strenuous work makes premature old age a common occurrence, we find a few pension schemes. A survey of transportation companies in the United States by Lee A. Squier, published in 1912, shows that only a few more than a score of such companies have adopted any plan of compensation for their old and worn-out employes. Mr. Squier extended his investigation to over a thousand of the important industrial corporations of this country, only about thirty of which reported any existing scheme of relief for the worn-out worker.” A 314 THE HUMAN FACTOR IN INDUSTRY study made by the National Civic Federation under the di- rection of the Commission on Pensions of New York City and published in 1916, gives approximately the same re- sult. A list of 55 industrial pension schemes, including those in the railroads, is given as a result of this investigation, in which an effort was made to include all pension plans then in existence. In 34 of the plans investigated, the employer assumes the entire burden, only 6 are on the contributory plan, and no data are given for 15 companies.” Uniformity of Pension Plans.— There is a great uni- formity of pension plans within industry. Practically all are based on earnings (another way of saying, value of the employe) and the percentages, with notable exceptions, closely approximate each other. There are some liberal percentages of salaries allowed but these are usually offset by prerequisites as to years of service. The pension system established in 1913 by the American Telephone and Telegraph Company for its employes may be quoted as a typical example of free industrial pension plans.” The employes of the company are divided into three classes, each of which receives pensions equivalent to 1 per cent of the annual average pay for ten years, for each year of serv- ice. Cuass A. May be retired either at their own request or at the dis- cretion of the Committee. This class consists of employes whose term of employment has been 20 years or more and who have reached the age of 60 (females 55). Crass B. May be retired on pension only upon approval of President or Vice-President. This class consists of the employes whose term of employment has been 25 years or more and who have reached the age of 55 (female 50). Cuiass C. May be retired on pension only upon approval of President or Vice-President. This class consists of employes whose term of employment has been 30 years or more. Note. The minimum pension will be $20 a month. Disability Pensions: Same as for old age, granted at any age after 15 years of service. INSURANCE, SAVINGS, AND LOANS 315 Requirements of an Employer’s Service Pension. — If employers wish to secure the beneficial results of a pension plan and not do an injustice to their employes, certain standards will have to be met. If payment of pensions is granted, it should be assured by the creation of an adequate fund or by the employer’s guaranty, or by both. In the event of the discontinuance of the service pension plan, provision should be made for the payment of pensions al- ready granted, preferably by purchasing annuity policies in a reliable insurance company. Some employers contrib- ute percentage on wages to the fund as services are ren- dered, but this implies that some compensation is being withheld, so is not popular. The most common method is for the employer to make contributions as the money is required.” Separation of Invalidity Insurance from Old Age Pensions. — Thirty-three of the fifty-five pension systems studied by the National Civic Federation include disability pen- sions.” The majority may be granted at any age, but usually a prerequisite number of years’ service is stipulated. This brings up the question as to whether an old age pension system should include a disability clause to provide for those who must retire early in life because of invalidity, or whether this should be included under the sickness insurance scheme. It is the opinion of M. M. Dawson that service pensions provided by the employer are welcome only when there is no other available provision, and that invalidity benefits should be provided by joint contribution under the sickness insurance scheme.*® This enables a relatively high pension age, with retirement rigidly enforced unless the service of the employe is exceptionally valuable. Inadequacy of Pension Scheme within Industry. — Even though it be decided that old age is an industrial problem and industry should be compelled to bear the burden of its worn-out human lives, the difficulties seem to outweigh 316 THE HUMAN FACTOR IN INDUSTRY the advantages. Few industries have been willing or able to develop any satisfactory scheme. Corporation pension schemes provide for the better class of mechanics and other well-paid laborers. They do not reach the great mass of common day-laborers. Any pension scheme for employes with one corporation as the unit is dangerous. There are too many firms dissolved to make this safe. And the vari- ous investigations show that no adequate provision is made by trade unions or fraternal societies. Compulsory Contributory Scheme. — Compulsory con- tributory insurance has been suggested as a way of meet- ing the problem of old age, but the difficulties appear in- surmountable. The present generation of people would not be benefited. A complicated system of accounts with every employed person would be necessary, and with a con- stantly shifting population this would be impossible, and still all those who are not wage earners would remain unpro- vided for. Service Pensions Paid through Taxation. — Squier, who has made an impartial and thorough study of the problem in all its phases, believes that the state must provide a sys- tem of service pensions for its old and worn-out citizens. According to him, voluntary provisions, as industrial con- ditions now obtaining clearly manifest, are impossible.* Problem of Old Man in Industry. — Systems of state old age pensions exist in Great Britain, France, Australia, New Zealand, Denmark, and Iceland. It is possible that in the United States the States may ultimately make provi- sion for the burden of old age. In the meantime the prob- lem of the old man in industry remains. It is to the ad- vantage of the employer to facilitate the retirement of the aged worker. He is a handicap to industry; his retention in active employment after he has passed his limit of ef- ficiency means an economic waste to the employer, yet the dismissal of such a worker without any financial provision INSURANCE, SAVINGS, AND LOANS 317 for the rest of his life is an injustice.2® The motives under- lying the establishment of a pension scheme are twofold: humanitarian and economic. The employer with any hu- man sympathy cannot dismiss an old yet faithful employe without any means of support. A pension scheme allows the elimination of those too old to work and promotes contentment and loyalty. Insurance the Method of Eliminating “Passing the Hat.’”’ — That insurance is the method to be used to elimi- nate dread of destitution and “ passing the hat” is no longer a disputed question. But should insurance against the economic uncertainties of a wage earner’s life be made compulsory for all adults, for certain groups, or voluntary? And should this insurance be carried by the State, private insurance companies, or mutual societies, or by all three in competition? Which of the numerous combinations of these methods conforms to the ideals and philosophy of the United States? It should be based on existing American conditions and afford room for private initiative in working out the details. In addition to the various insurance and pension schemes, industry has tried to encourage the employe to be thrifty by inaugurating savings plans and stock ownership schemes. Savines AND LoAN PLANS Problem of Saving. — Thrift and saving have been sug- gested as a substitute for insurance, but in order to meet future expenditure must have time to do so, while he who insures himself is protected from the moment he takes out the policy. American people have been called thriftless; in so far as thrift implies conservation of re- sources and elimination of waste no one would deny the value of instilling thrift into the minds of the American people, but if it is given the meaning of individual saving it 318 THE HUMAN FACTOR IN INDUSTRY implies surplus in the wage earner’s budget. This is not always the case, and excessive thrift may do positive harm in lowering the standard of life. A study recently com- pleted by the United States Bureau of Labor Statistics shows that during the interval 1907-1918 wages increased 48 per cent, while retail prices of food increased 105 per cent.2° It is thus no wonder that the wage earner finds it difficult to save and the problem of emergencies becomes a serious one. Present Provision for Savings and Loans. — Various efforts have been made to rescue the wage earner from his dilemma, to provide means for ordinary and emergency sav- ings and loans for home building. The savings bank will accept his small savings, building and loan societies en- courage home owning, and various forms of codperative credit have arisen to provide him with loans in case of emer- gency and thus to do away with the loan-shark evil. Building and Loan Associations. —'The most important contribution of the United States to the codperative credit movement is the building and loan association. In August, 1913, there were 6200 local building and loan associations, with a total membership of more than 2,500,000. These as- sociations provide opportunity for home building and for long- time loans with real estate or mortgage securities, but they do not supply the need for the short-time remedial loan.*! Other forms of coédperative credit have therefore been de- veloped. Company Associations. — By means of company savings and loan associations employers have encouraged ordinary savings and eliminated the loan-shark with the worry and loss of efficiency among employes consequent upon deal- ings with him. Variations in Plans.— A study made by the National Association of Corporation Schools in 1917 gives a list of 61 companies which have some form of codperative savings INSURANCE, SAVINGS, AND LOANS 319 plan. The plans vary widely in the following features: interest return on savings; limitation of sums to be loaned ; interest charged for such loans; and the share allotted to the employes in the management of the associations.” Managed by Employer. — The purpose of the New York Edison Company’s Savings and Loan Association is two- fold — to encourage saving and home owning. The com- pany assumes all expenses, paying 4-5 per cent interest on savings, and making loans for home owning purposes to 80 per cent of the property value, charging 6 per cent interest. Managed by Employes. — The Savings and Loan Bureau of William Filene Sons’ Company, Boston, Mass., is under the direction of the Codperative Association of the em- ployes. The officers in charge are elected by members of the Codperative Association, but the company guarantees against losses and pays 5 per cent interest on savings. A legal note must be given for sums loaned of more than $10.00. Employer’s Contributions. — The Metropolitan Staff Sav- ings Fund of the Metropolitan Life Insurance Company, New York City, is unique. The company contributes half as much as the employe saves. Any employe, after one year of service, whose earnings are not in excess of $3000 a year may be a depositor in the fund, but no employe may deposit in one year more than 5 per cent of his earnings. The company’s deposits may be drawn out in the event of the depositor’s death or permanent incapacity, or by vote of the trustees in the case of honorable retirement following twenty years’ continuous service. The em- ploye’s deposit may be withdrawn at any time, the com- pany’s contributions standing to the credit of the remaining depositors.” Codperation with Outside Bank. — In some cases the em- ployer serves simply as an intermediary agent between the employe and a bank. The Clothcraft Shops have a 320 THE HUMAN FACTOR IN INDUSTRY penny bank as one of the activities of the Employment and Service Department. Interest is paid on all deposits over one dollar remaining in the bank three months or more. When deposits reach $100 the employe is advised to transfer his savings to a regular savings institution. Small loans are also made by this department, but an explanation of the reason for the loan is required.4 The Dodge Manufactur- ing Company started a Thrift Club as an additional activity of the Dodge Relief Association. When the plan was started no interest was paid on the deposits, which were deducted from the weekly wages. After making this test the com- pany began paying 4 per cent interest in cash every six months through the codperation of a bank. The amount of weekly deposits doubled almost immediately. In October, 1917, one third of the employes of the company were mem- bers of the Thrift Club. The company believes that it has in this way proved to the men that it was chiefly careless- ness and not inadequate wages which formerly prevented them from saving. Stock-selling Plans. — Another method by which cor- porations have endeavored to promote thrift and industrial peace is by the sale of stock of the company to its employes. Some of these plans are inseparably connected with a profit- sharingplan. TheSears Roebuck Company has devised a com- bination stock-purchasing and profit-sharing plan, in which the company contributes 5 per cent of the net earnings and the employe deposits 5 per cent of his salary, which fund is invested in stock of Sears Roebuck Company. A de- positor who has completed ten years of service will be en- titled to withdraw all the money credited to his account, including the company’s contributions. If he has served less than ten years he can only withdraw his contributions plus interest at 5 per cent.* Some corporations, such as the United States Steel Corporation and the International Harvester Company, have stock-purchase plans for the rank INSURANCE, SAVINGS, AND LOANS 321 and file. In most of these plans the employes are offered the opportunity to purchase the stock upon especially ad- vantageous terms, paying for it in installments. On May 28, 1919, the Eastman Kodak Company offered to its employes twenty thousand shares at par value of $100 per share, purchasable in installments. The market value at that time was something over $570. The employe is not allowed to sell his stock for five years, but if he leaves the company he receives par value, or the amount he has paid. The inter- ests of the employes are safeguarded by equal representation upon committees formed to deal with all such matters im- partially. Credit Unions. Objects.— A comparatively new de. velopment of the remedial loan movement in this country is that of the Credit Union. This form of codperative credit is known in Germany as the Codéperative Credit Association, in Ireland as the Credit Society, in Italy and Canada as the People’s Bank. Its objects are threefold: (1) To encourage thrift by providing a safe method for members to invest savings. (2) To provide a means whereby members can borrow at a reasonable rate of in- terest. (3) To train members in business methods and self-government.*6 Organization.— The Credit Union is a codperative or- ganization which may be used as a depository for savings and will in turn extend credit to a man with his char- acter and personal worth as security. The principles of credit unionism are: (1) Equality. All members share equally in privileges and ratably in profits. (2) Democ- racy. The one-man-one-vote principle is fundamental. Each member has but one vote irrespective of the number of shares he may hold. Membership. — Any number of persons may combine to organize a Credit Union, in a city, town, or rural commu- nity. While the members of the group should assume the Y 322 THE HUMAN FACTOR IN INDUSTRY responsibility it is important that the State regulate Credit Unions to make sure that they are safe. Massachusetts was the first State to pass such a law. This was in 1909, and since that time seven other States have followed suit. The basis of membership in a Credit Union must be some common bond or community of interest. It may be common occupa- tion, employment by the same establishment, or membership in the same church, club, lodge, labor union, or other or- ganization. In rural communities the church parish, school district, or local grange furnishes a satisfactory foundation for membership. Large numbers of men employed in one establishment or organization are usually divided into departmental or divisional groups. These groups may be taken as the basic units for the organization of Credit Unions. This is true of department stores, railroads, and most establishments in which large numbers are employed. These groups may be federated to good advantage, but the individual Credit Union should not be so large as to become unwieldy. The smallest workable unit is about twenty-five. Security for Loans. — Ordinarily the security that a Credit Union demands for loans is a promissory note of the borrower with one or more indorsements, supplemented by a lien upon the borrower’s shares and deposits in the Credit Union. The requirement of indorsements may be waived in some cases if the loan is: for a small amount. Large loans may also be made to members upon security or mortgage of real or personal property, but unless the Credit Union has an abundance of funds, preference should be given to the smaller loans. Rates of Interest. — The rate of interest on loans should approximate as nearly as possible the banking rate of inter- est. In New York the maximum rate which may be charged is 12 per cent per annum. The rate of interest paid on deposits may be variable and should be fixed at regular intervals. It should not, however, exceed by more than INSURANCE, SAVINGS, AND LOANS 323 1 per cent per annum the rate paid by the savings banks in the vicinity. Deposits should draw interest from the beginning of each calendar month, but interest should be paid quarterly® The Credit Union Primer, compiled by Arthur H. Ham and Leonard G. Robinson and published by the Remedial Loan Division of the Russell Sage Foundation, gives in- struction, by-laws, forms, and records to serve as guides to groups desiring to form Credit Unions. This plan may serve as a guide, but may be modified to meet any set of circumstances. Success of Credit Union with Industrial Group as Unit. — That the Credit Union with the industrial group as a unit has proved successful in encouraging small savings and ridding the employe of the harassing influence of the loan-shark is verified by statement of the Postal Telegraph Company and Mr. Springstead of the United States Ap- praisers’ Office of New York. For years the employes of the Postal Telegraph Company have been paying tribute to the loan-shark. The Credit Union has enabled the operator to maintain his self-respect in the knowledge that he has a savings account in the Credit Union and the privilege of borrowing therefrom at a reasonable rate of interest for any legitimate purpose. Mr. Springstead makes the statement that there is no question of the value of the Credit Union to both employer and employe, in eliminating the loan- shark evil. This Credit Union was organized in 1916 for all Federal employes in New York City. The membership has now reached 1200 and has recently been restricted to employes of the Appraisers’ Office, because a larger mem- bership would become unwieldy. Difficulty of Stock-selling Plans. — The difficulty with many stock-selling plans is that they may hamper the free- dom of the employes. Any such plan should be subject to two important qualifications: (a) Becoming a stock- 324 THE HUMAN FACTOR IN INDUSTRY holder should be absolutely voluntary; (6) adequate provision should be made for employes leaving the com- pany to dispose of their stock without loss. But even though these regulations are followed there is no great advantage to the employer; the ownership of one share of stock in a $1,000,000 corporation can hardly have any marked effect upon efficiency, and to the employe the danger is great. It is commonly estimated that 95 per cent of all business enterprises fail. There are a few corporations in which the stock is comparatively safe, but in any event it is con- trary to good business principles for any one to put all his eggs into one basket. Combating the Loan-shark.— In order to meet emer- gencies the wage earner has often had to become the victim of the loan-shark charging from 100 to 150 per cent per annum for small loans. A service manager of a Michigan manu- facturing plant has succeeded in freeing his men from loan- sharks by an interesting experiment. Soon after accepting his position he discovered that in the neighborhood of 400 of the employes of the company were in the clutches of the loan-shark. One man had not drawn his own salary for 13 years. To combat this evil a conference was held with the loan-sharks, at which they were told’that the company would investigate each claim and decide the amount that should be paid, leaving the court as the loan-shark’s only recourse. The loan-shark cannot brave the courts, because in most cases he has been breaking a law. This procedure proved so successful that at the end of three months there was not a salary assignment left in the office. This company realized the necessity of providing a substitute for the small loan. The wage earner often must borrow sums from $10 to $75; so a fund was provided with which to take care of these small loans.” Credit Union. — There seems to be no good reason why an ordinary savings bank would not codperate and accept INSURANCE, SAVINGS, AND LOANS 325 even the smallest deposits; but the workingman needs more than a safe depository for surplus earnings. In evaluating any of the several savings and loan systems the following points are important: the banking hours must conform to the employes’ convenience; the agency must be con- veniently located and the depositor must be encouraged to deposit small amounts of less than a dollar ; credit should be extended to him with his character as security. The Credit Union seems to meet all these requirements, and provid- ing the American people can prove their ability to engage in codperative undertaking there seems to be no reason why the savings and credit function should not be combined in this satisfactory way. The objection to the Credit Union in this country is that the people are too individualistic for any codperative undertaking; but although experience is small it indicates that certain groups, such as the employes of one firm,** possess the requirements for such an organization. The employer may think it advisable to encourage his employes to form a Credit Union, which, owned and managed entirely by themselves, will cultivate self-respect and knowledge of business methods and will increase efficiency. CHAPTER XII ORGANIZATION OF THE DEPARTMENT OF LABOR ADMINISTRATION Purpose of Labor Administration. — Wages — the return for the work done, and the possibility of increased return as time goes on — are the worker’s prime interest. But in addition any facilities that will make the worker healthy, add to the joy of his work and give him an interest in it will add to the productivity of the individual and the completeness of his life. A workman who is ill is a burden to himself, to his family, and to the industry in which he is employed. The healthy workman is, in all probability, the reverse. The need for greater total and hourly output and the need for more leisure for recreation, will always make efficiency in production a common goal for employer and employe. Labor administration should make industry more effective by making the workers more efficient, and the output for each hour of effort better in quality and greater in quantity. Current Misunderstanding. — Both employers and em- ployes have largely failed to appreciate this mutual interest in service activities. The antagonism between the manage- ment and the rank and file in industry has been created by disputes over wages and the division of product, and as a result has unfortunately interfered with the introduction of those services for employes which aim to increase pro- ductivity and should only benefit the workers and in no wise injure them. The management has often been respon- sible for this antagonism by failing to make clear the distinction between the reward for labor which a workman receives in the 326 DEPARTMENT OF LABOR 327 form of wages, and the services rendered him as an employe, which should not be intended as a reward for labor but for the sole purpose of increasing his effectiveness. Thus railroad executives during the period of stress before the passage of the Adamson law, sought to use the Pension Funds as a club to restrain the workers from striking. Such action by the management of one industry contributes to the spreading of an attitude of suspicion among all employes against all forms of so-called ‘service for employes.’’ The steel workers included as a demand in the recent steel strike the elimination of the medical examination of employes in that industry, one of the most vitally necessary provisions for the protection of their own health and labor power. Both sides fail to realize that the introduction of medical care for employes, or of a rest room, or restaurant, like the intro- duction of any new machinery, is mutually desirable if it increases production, but that it must do so without unduly restricting individual liberty. It has nothing to do with wages. If offered as a substitute for wages or in any way used as a means of detecting “ undesirable’ employes its failure is easily foretold. Service activities in their limited field should yield large returns. They will not forestall trade unionism, they will not solve disputes over wages, and unless directed with vision, they will not develop an esprit de corps. Preliminary Study. — The approach to the problems in- volved in the organization of that most delicate and intri- cate of machinery, the plant personnel, must be scientific. Sentimentality and beneficence avail little in service work. The preliminary study for the development of any phase of the work should include an analysis of (a) the need for it from the standpoint of production and the individual em- ploye, (b) the best way to fill the need, (c) the demands and attitude of the workers in regard to it, and (d) unavoidable limitations as to the scope of service to be rendered. Atten- tion must be paid to the existing facilities for such service 328 THE HUMAN FACTOR IN INDUSTRY in the industry and community, the difference in the needs of a shop or clerical force, of a male, mixed, or female force, and of employes coming from different types of homes and sur- roundings. The way to fill the need can be determined only after an analysis of all available information as to the value of the various methods in use. The approval of the workers is necessary if the service is to be fully utilized. Consultation with them in order to determine the best ways to fill the needs, to sound out possible objections, and to define clearly the purpose and scope of service contem- plated, will avoid future misunderstandings. For example, employes should know that a medical department designed solely for first-aid and emergency treatment cannot give attention to more serious illnesses, or those requiring the latter attention will by their criticism reduce the value of the entire undertaking. Again, the space available for equip- ment in the plant premises or environs will affect the form of service that is to be offered. Need for Experts. — The organization and administration of the work of the service, employment, health, and other branches of labor administration belong in the hands of experts. This is true whether the management, the workers, or a combination of the two determine the broad policies to be followed. Labor administration is not child’s play. It is rather the work of especially trained and unusually capable people. Specialists must decide upon the mental, temperamental and physical requirements of the different jobs of the industry, on the kinds of fire escapes needed, the heating, lighting, and ventilating systems adapted to the construction of the plant and the needs of the workers, and on all other service methods and equipment. They must further devise the statistical records to show the value of the various experiments made. If the size of the plant does not warrant the continuous employment of such experts, the employment manager or general supervisor of personnel, DEPARTMENT OF LABOR 329 like the family physician, must call specialists in consulta- tion to diagnose existing difficulties and to suggest remedies. Importance of Attitude. — The mere installation of serv- ice equipment, no matter how complete, will be ineffective without efficient continuous management by those who have not only technical knowledge and training, but also an appreciation of method and purpose. The spirit in which the work is undertaken and carried on, the earnest- ness of the desire in those who administer it to secure the fullest codperation of the employes in solving these human problems of production, remain the chief factors in success. The qualifications for those in charge of the different branches of service vary greatly. The Employment Manager. — The employment manager, for instance, is expected to be “a specialist in human relationship.” ‘It is much better and requires less time and expense to teach an experienced, well trained employ- ment manager the necessary details of shipbuilding to qualify him sufficiently to handle his work, than it does to take a man who knows all about ships and try to teach him the principles of modern employment management, and to develop within him the personal qualifications nec- essary to handle men,’ claims the Industrial Service Section of the Emergency Fleet Corporation.! Beyond the supposition that an employment manager is a “ master of system’? he must be courteous and even-tempered, sympathetic, just, intuitive, quick and sure in decision, firm and of the motor type, from which arises executive energy. He must be able to analyze the facts related to his work, and have the constructive imagination to solve the many problems which arise. Interviewing applicants for work is in itself a skilled occupation and demands in addition to these personal and mental qualities, a knowledge of sources of labor supply, educational institutions, psychol- ogy, and the technical processes of the business of the firm.? 330 THE HUMAN FACTOR IN INDUSTRY The type of functions shown in the following chart indi- cates the problems to be handled whether the employment manager serves in all capacities, or only as the directing head. Employment Manager | Assistant Employment Manager ( Hiring ) ee and aa ( Clerical ) Division Relations Division Division Assistant Employment Chief Employment Manager Clerk Manager Interviewer Inspector Pass and Office Force of Rate Clerks Clerks, Applications Stenographers, Messengers The Industrial Physician. — Industrial medicine is like- wise a profession in itself, distinct from that of ordinary medical practice. As one hygienist has said :* Employers should consider that two types of mind are needed for industrial medical service — one capable of expressing policies and able to organize the staff and direct the work, the other competent in details and qualified to do the routine work. . . . Physicians are apt to be of the latter type. . . . To be sure, some physicians are endowed with administrative capacity which refuses to be stifled (by the medical training in details). By surrounding themselves with skillful assistants and directing their efforts wisely they become successful and usually prominent in their profession. This is the kind of physician that is most able to direct industrial medical de- partments, and employers would do well to select this type when in DEPARTMENT OF LABOR 331 need of the services of chief physicians. To secure competent physi- cians for places where only one doctor is needed, with possibly one nurse or other aid, is exceedingly difficult, as the duties are such as to require the exercise of initiative as well as attention to the details of routine work, including the keeping of records and the making of reports, matters in which doctors are notoriously neglectful... . It is best to secure for these positions, if possible, doctors who have acted as assistants in established industrial medical departments, and while there, have shown talent for management. This also ap- plies to the choice of chief physicians for those departments in which the executives are expected to do part of the routine work, the size of the establishments necessitating the employment of several doc- tors but not justifying the devotion of one man’s whole time to ad- ministration. In the large industry the medical department may require the services of a technically qualified personnel : Chief Physician | (Special Clinics) (Medical Examination) (Dispensary) ae lesen —teliceee Tl Oculist Dentist Doctors Roentgen-| |Doctors | | | ologist Assistant Assistant Nurse Nurse Clerical Clerical Staff Staff . Laboratory Experts Similar specifications of function attend the adminis- tration of the departments of safety and sanitation, educa- 332 THE HUMAN FACTOR IN INDUSTRY tion and of general service for employes, concerned with lunch rooms, recreation, plant publications and other activities. This is true, let us reiterate, whether the plant is small or large, and under democratic, codperative, or autocratic management. If the plant is small, the technical, mental, and temperamental qualities of these various administrators must be combined as far as possible in one or two people, instead of being distributed among a number. If the plant policies are controlled by the entire personnel of the plant, or by a joint committee representing the management and employes, or by a financial directorship, the administration of these branches of service must still be relegated to special- ists. Department Organization.— In many industries some sort of labor administration for employes already exists. In some instances, elaborate equipment with a multiple personnel has been accumulated for the sole purpose of caring for the human machinery, but so gradually and un- consciously that the work has not been centralized or con- trolled. Obviously the medical department cannot function to the best advantage unless the coéperation of the employ- ment department facilitates the transfer of an employe from an occupation to which he is not physically suited to an- other more favorable one. The work of the employment manager, on the contrary, is held up unless the medical examiner is acquainted with the physical specifications for various jobs. Such correlation can only be secured where every branch of the administration of labor is under the supervision of a chief executive. Control of Policy. — Even before the present movement to ‘‘ democratize industry’ and “to give the workers an increasing share of control,’ service activities were often managed jointly by employer and employes. Mutual Benefit Associations have been organized in consultation DEPARTMENT OF LABOR 333 with the management of a plant, consulting safety com- mittees have grown up with the organized safety move- ment, and recreation with the plant as a center has long been under the control of employes in some plants. Co- operative effort has frequently proved to be more effective in developing service activities than management solely by employers or employes. The success of certain Mutual Benefit Associations has been attributed to the check on malingering furnished by the interested employes. Again, there are instances of the failure of recreational activities instituted by employers which, when converted to the manage- ment of employes, became signal successes. The codperation of the management provides a needed element of continuity in the organization of services for employes. In a unionized industry, moreover, the spokesmen of the workers must be consulted in the early stages of planning service work. Wherever the control is lodged, every one must understand in advance where the final decision in the enforcement of policy rests. If an employer forbids a customary meeting on company property at which the employes’ association will be addressed by some one or on some subject not ap- proved by the management, much discussion and consequent hard feeling may arise unless the employer’s censorship powers have been well defined to begin with. Democracy in Industry Not a Technical Problem. — This is clearly brought out by Mr. Leiserson, impartial Chair- man of the Labor Adjustment Board, Rochester, N. Y., who says :4 Committees of employes may be used by the technical men who handle the personal relations in industry, but they are not the same kind of organizations of employes that are needed to deal with the economic or governmental relations. The first can be permitted to offer to the management only advice and suggestions. The second must have a veto power on the acts of the management, and will sooner or later demand an equal voice in determining wages and hours and controlling discipline. ... Welfare committees 334 THE HUMAN FACTOR IN INDUSTRY . . . deal with personal problems only, with personal management questions; yet either in ignorance or as a subterfuge, they are commonly offered to employes as industrial democracy. ... This is playing with fire. ... Any employer who is not ready for collec- tive bargaining, who is not looking toward turning over to his em- ployes 50 per cent of his control over terms and conditions of employ- ment, had better beware of shop committees. If he desires merely to improve the personal relations between his management and his men, if he wants only to be brought into closer contact with his employes for the purpose of insuring a square deal to them as he sees it, . . . then all he needs is a good employment and service organization. ... Shop committees are not at all necessary, and they are likely to confuse the managers with issues of democratic control of industry, while the employes may be misled into thinking they are going to have a real voice in the management and become resentful and rebellious when they find out the truth. If these advisory committees are used in personnel management work it is very important that most careful explanatians be made to the employes so that they will not misunderstand. So while Labor Administration and such committees as may be developed in connection with it are concerned with in- creasing production, the so-called ‘‘ employer’s union,” workshop committee, or joint management boards are con- cerned chiefly with the division of product. The English Whitley reports, it is true, emphasized throughout the im- portance of increasing production in advocating the program of joint control of the management of workers and capital. As a result, service activities naturally formed an integral part of the work of the Joint District Councils and Works Committees recommended by them. This function was, however, of secondary importance to that of the adjustment of wages and grievances. Likewise, with the ‘ Company Unions ” developed in the United States by the Shipping Board, the War Labor Board and individual employers, their initial programs have mentioned the importance of production and turned over to employes the control of service work, but the real interest has been in creating DEPARTMENT OF LABOR 335 permanent arbitration boards to eliminate strikes. This object if achieved would naturally increase gross produc- tion, but not necessarily the effectiveness of the individual worker. These organs of “democracy ’”’ thus deal essentially with the negative aspect of production, that of doing away with friction, rather than with the positive aspect of pro- ducing more goods per hour per worker. The purport of these workshop committees in connection with caring for the human machinery of a plant, with which we are here con- cerned, is merely to indicate the general tendency to appre- ciate the mutual benefits of efficiency, and the fact that mutual consent alone permits efficiency. Experience with them has been too brief to warrant a detailed statement of results at this time. The tendency, however, cannot be ignored in the organization of any phase of labor adminis- tration. Lessening Importance of Control.— The importance of the control of service activities will decrease as rapidly as scientific knowledge accumulates and a general mutual understanding between management and men prevails. The question of safety devices rarely if ever appears in union demands or individual contracts. ‘Safety ” has become a science recognized by both employer and employe as a prob- lem of production and is no longer a subject of disputes and arbitration. The same may soon be true of working hours; for instance, if scientific experiment proves that eight hours or six hours or some other period is the most productive one for the working day in a given occupation, the length of the working day will then be removed from the field of barter and discussion along with many other subjects which now concern the individual worker. In the meantime, it is well to realize the value of codpera- tion which is illustrated by the following story. In England, at the beginning of the war, a long-established munitions factory built a new shop almost identical in equipment and 336 THE HUMAN FACTOR IN INDUSTRY construction with the older shops. Within six months the newer and more inexperienced hands in this shop: had so far outstripped the older workers in efficiency that they were producing 13,000 articles a week instead of the 5000 which had been expected, estimating on the rate of output in the older shops. The only explanation was that the patriotic zeal of these new workers was not hampered by “ the long standing customary restrictions upon habits or rhythms of work ”’ which, in spite of patriotic zeal, retarded the speed of the older workers. If willing effort and esprit de corps can thus triple the output of indifferent labor, the enlistment of the workers’ interest in their work and in output becomes the supreme goal for employers.’ Service work should help to achieve this end. Success awaits the extension of service activities in any industry, if employer and employe are bent only on securing through them increased effectiveness for each individual, and for the business as a whole. With such a concept the old paternalistic approach has no place. Service for the worker becomes solely and frankly a business proposi- tion in which each employe from the president down is in- terested. The development of any single activity must be carefully considered, its introduction must be such as to promise maximum returns, and its development, adminis- tration, and control must bring increasing results. LIST OF REFERENCES THE INTRODUCTION 1. Salzmann, L. F.; English Industries of the Middle Ages; Boston, Houghton Mifflin Co., 1913, p. 231. 2. Jack, A. F.; An Introduction to the History of Life Assurance; London, King, 1912, Footnote, p. 119. 3. Salzmann, L. F.; p. 230. 4. Dunlop, O. J., and Denmann, R. D.; English Apprenticeship and Child Labor ; N. Y., Macmillan Co., 1912, p. 56. 5. Jack, A. F.; p. 119. 6. Lipson, E.; An Introduction to the Economic History of England; London, Black, 1915, p. 306. 7. Smith, J. T.; English Guilds; London, L. Triibner & Co., 1870, p. xxxvi. 8. Lipson, E.; p. 305. 9. The following account of Robert Owen’s activities at New Lanark is taken from Podmore, F.; Robert Owen; London, Hutchinson & Co., 1906, Vol. I, p. 80-183. Gilman, N. 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F. 8.; 2d Interim Report (on an investigation of industrial fatigue by physiological methods), British Home Office, London, Aug., 1916. 22. Leverhulme, Lord; The Six Hour Day and Other Industrial Questions; N. Y., Henry Holt & Co., 1919. 23. Lescohier, D. D.; Industrial Accidents, Employers’ Liability and Workmen’s Compensation in Minnesota; Am. Stat. Ass’n Q., June, 1911, p. 654. 24, Rubinow, T. M.; Social Insurance; N. Y., Henry Holt & Co., 1913. 342 THE HUMAN FACTOR IN INDUSTRY 25. Mo. R., Oct., 1917, p. 155. 26. Taylor, F. W.; The Principles of Scientific Management; N. Y., Harper & Bros., 1911, p. 57. 27. Rest Periods for Industrial Workers; Nat. Ind. Conf. Bd. Rep’t, No. 13, Jan., 1919. 28. Cadbury, E.; Experiments in Industrial Organization; London, Longmans, Green & Co., 1912. 29. Fitch, J.; Making the Job Worth While; The Survey, April 27, 1918. 30. Welfare Work of the Metropolitan Life Insurance Company; Rep’t, 1917. 31. Sanger, S.; The Limitation of Hours from the International Point of View; Nat. Conf. on the Prevention of Destitution, Westminster, 1912, P. 8S. King & Son, p. 456. 32. U.S. Bur. Lab. Stat. Bul., No. 223, April, 1917, p. 59. CHAPTER VI Proc. Nat. Safety Council, 6th annual Congress, part 1, p. 9. Pa. Dep’t Lab. and Ind. Bul., June, 1917. . Young, Arthur; Practical Aspects of the Safety Movement; Ind. Man., Oct., IN 1917. » Eggan, M. J.; Safety Work that Reduces Cost of Accidents; The Dodge Idea, ae 1916. California Safety News, Feb., 1917. Contests for Accident Prevention; Survey, April 19, 1919, p. 120-121. U.S. Bur. Lab. Stat. Bul., No. 210, p. 103. Pa. Dep't Lab. and Ind. Bul., Feb., 1917, p. 139. . 100%, Dec., 1916, p. 84. 10. U.S. Bur. Lab. Stat. Bul., No. 210, p. 137. 11. A Brief Account of the Educational Work of the Ford Motor Company, 1916. 12. U. S. Bur. Lab. Stat. Bul., No. 230, July, 1917, p. 146-147. 13. Rochester, A., and Taylor, F.; What the Government Says about Cotton Mills; pamphlet 243, Child Labor Committee. 14. Correspondence with the Company. 15. Hayhurst, E. R.; A Survey of Industrial Health Hazards and Occupational Diseases; Rep’t Ohio State Board of Health, Feb., 1915, p. 51, 404. 16. Frankfurter and Goldmark; The Case for the Shorter Work Day; 1915, Vol. I, p. 257. 17. Jones, E. D.; The Administration of Industrial Enterprises. 18. Price, G. M.; The Modern Factory; p. 76, 232, 271, 1914. 19. U.S. Bur. Lab. Stat. Bul., No. 207, March, 1917. 20. Commons, J. R., and Andrews, J. B.; Principles of Labor Legislation, p. 321. 21. Recommended Standard Practice on Medical Supervision in Detroit Planis; An. Am. Acad., May, 1917. 22, Health of Munition Workers: Rep’t, Memo. No. 14, 1916. 23. Darlington, Thomas; Illness in Industry — Its Cost and Prevention, 1914. 24. Hubbard, Charles L.; Factory Water Supply; Factory, May, 1919. 25. Roach, John; Hygienic and Sanitary Equipment; Ind. Man., Oct., 1917. 26. Parsons, Floyd W.; Health and Industry; Sat. Eve. Post, June 7, 1919. 27. Shop Lighting; Rep’t Ind. Com. of Wis., 1914. 28. Schereschewsky, J. W.; The Health of Garment Workers; Pub. Health Bul., No. 71, N. Y., 1915, Treasury Dep't. 29. Winslow, C. E. A.; Proof that it Pays to Ventilate; Factory, Feb., 1917. 30. Great Britain. — Health of Munition Workers Committee; Memo. No. 9, p. 66. 31. Harris, Louis I., and Schwartz, Nelle; The Cost of Clean Clothes in Terms of Health; Dep't of Health, N. Y., and N. Y. Consumers’ League, 1918, p. 23. 32. U.S. Bur. Lab. Stat. Bul., No. 221, April, 1917, p. 101. 33. Fire Prevention and Safety First Methods; 100%, Oct. and Nov., 1918. CON HE LIST OF REFERENCES 343 CHAPTER VII 1. Mock, H. E.; Industrial Medicine and Surgery; J. Ind. Hyg., May, 1919. 2. Thompson, W. G.; Occupational Diseases; D. Appleton & Co., 1914, p. 10. 3. Report, Committee on Vocational Guidance; Nat. Ass’n Corp. Schools, 1916, Dr. H. C. Metcalf, Ch’n. 4. Ainsworth, F. K.; The Southern Pacific Company’s Railroad Hospital; Mod. Hosp., May, 1915; Reibenack, Max; Railway Provident Institutions in English- Speaking Countries; Pennsylvania R. R. Co., 1915. 5. 100%, Feb., 1916. 6. Bul. Chic. Tub. Inst., June 1, 1913. 7. Andrews, J. B.; Physical Examination of Employes; Amer. Public Health Ass’n Journal, Aug., 1916. 8. Sachs, T. B.; The Campaign in Chicago for Medical Examination of Employes; ies aaa 10th Annual Meeting, 1914, Nat. Ass’n for the Study and Prev. of Tub., p. 37. 4 9. Physical Examination of Wage Earners in Ohio in 1914; Bur. Ind. Commission of Ohio. 10. Rep’t Amer. Ass’n Ind. Phys. and Surgeons, 1918. 11. Service, Cost and Results of the Work of the Department of Health, 1913-1917, Dep’t of Health, N. Y. 12. Health and Sanitation; Norton & Co., Dep’t of Health. 13. 100%, May, 1916. 14. Parsons, Floyd W.; Health and Industry; Sat. Eve. Post, June 7, 1919. 15. Confidential report, Medical Department, Met. Life Ins. Co., 1917. 16. Glasgow, Maude; The Periodic Medical Examination as Applied to Employes of the Department of Health; Mo. Bul. Dep’t Health, N. Y., Jan., 1916. 17. Monthly R., Feb., 1919, p. 217. 18. U.S. Bur. Lab. Stat. Bul., No. 230, p. 150. 19. Standards for Physical Examination; Municipal Civil Service Commission of New York, 1916. 20. Trautschold, R.; Cost of Industrial Health Insurance; Ind. Man., Jan., 1918. 21. Mock, H. E.; An Efficient System of Medical Examination of Employes; Nat. Ass’n for the Study and Prev. of Tub., 10th Annual Meeting, 1914. 22. Britton, J. A.; The Relation of Medical Examination of Employes to the Hygiene of the Working Place and the Efficiency of the Working Force; Nat. Ass’n for the Study and Prev. of Tub., 10th Annual Meeting, 1914. 23. Mock, H. E.; Industrial Medicine and Surgery, The New Specialty; J. Amer. Med. Ass’n, Jan. 6, 1917. 24. Slade, C. B.; Periodic Physical Examinations in thetr Relation to the Practi- tioner; Med. Rev. of Rev., June, 1915. 25. New York Times, June 2, 1918. 26. Hutton, J. E.; Welfare and Housing; A Practical Record of War-Time Manage- 27. Monthly R., Sept., 1917, p. 66. 28. 100%, Jan., 1916. 29. Mullen, T. H.; Recommended Standard Practice on Medical Supervision tn De- troit Plants; An. Am. Acad., May, 1917. 30. Elliott, R. W.; Value of the Dental Clinic from the Standpotnt of the Industrial Surgeon; Rep’t Nat. Safety Council, 1918, p. 276. 31. Frankel, Lee K.; Dental Work in the Industries; Proc. Nat. Safety Council, 1916. 32. Welfare Work, Met. Life Ins. Co., 1917. 33. Dodge Idea, Jan., 1916. 34. Report, Provost Marshal General to the Secretary of War on the First Draft under the Selective Service, 1918. 35. Schereschewsky, J. W.; The Health of Garment Workers; Pub. Health Bul., No. 71, U. S. Pub. Health Serv., 1915. 36. Gardner, H. L.; The Employment Department, Its Function and Scope; U.S. Bur. Lab. Stat. Bul., No. 202, Sc., 1916. 344 THE HUMAN FACTOR IN INDUSTRY 37. Feiss, R.; Personal Relationship as the Basis of Scientific Management; An. Am. Acad., May, 1916. 88. Confidential Report, Medical Department, Met. Life Ins. Co., 1918. 39. Welfare Work for Employes in Industrial Establishments in the United States; U.S. Bur. Lab. Stat. Bul., No. 250, Feb., 1919. 40. Industrial Bulletin, Colorado Fuel and Iron Co., Sept. 25, 1918. 41. Met. Life Ins. Co., Tuberculosis Sanatorium for Employes; Mt. McGregor, Saratoga County, N. Y., Pamphlet Met. Life Ins. Co. 42. The Survey, Oct. 29, 1910. 43. Dublin, L. I.; Causes of Death by Occupation; U.S. Bur. Lab. Stat. Bul., No. 207, March, 1917. 44. King, H. M.; Restoration of Working Efficiency after Sanatorium Treatment ; Report 10th Annual Meeting of Nat. Ass’n Study on Prev. of Tub., 1912. 45. Mock, H. E.; Medical Work and Sanitation, July, 1911. 46. Industrial Health Hazards and Occupational Diseases in Ohio; Ohio State Board of Health, p. 402, Feb., 1915. 47. Hanson, Wm. C.; Attitude of Massachusetts Manufacturers toward the Health of their Employes; Bul. of the Bur. of Lab., Mass., No. 96. 48. Vogeler, W. J.; Employment of Patients ‘Leaving Sanatoria; Rep’t 10th Annual Meeting, Nat. Ass’n for Study and Prev. of Tub., 1912. 49. Cooke, M. L.; Scientific Management and Unemployment; An. Am. Acad., Sept., 1915. 50. Selby, C. D.; A Proposed Bureau of Industrial Safety, Sanitation and Hygiene to be Maintained on the Mutual Plan; Am. J. of Pub. Health, Nov., 1916. 51. Fisher, Boyd; Methods of Reducing the Labor Turnover; An. Am. Acad., May, 1916. 52. Pub. Health Bul., No. 99, U. S. Pub. Health Serv., 1919, p. 30. 53. Proc. Nat. Safety Council, p. 196 sqq., 1919. 54, U.S. Bur. Lab. Stat. Bul., No. 230, July, 1917, p. 51. 55. Proceedings of the Conference on Social Insurance, U. S. Bur. Lab. Stat. Bul., No. 212, p. 458, June, 1917. 56. Strunsky, Hyman; A Workmen's Sanatorium for Workers; The Survey, May 29, 1915, Vol. XXXIV, p. 196. 57. Joint Board of Sanitary Control, 6th and 7th Annual Reports, and other data secured from Dr. Price. 58. Elliott, R. W.; How We Keep Our Men Well; Factory, Feb., 1919. 59. Austin, M. A; Medical Inspection of Factory Employes; ‘s. Ind. Hygiene, June, 1919. CHAPTER VIII 1. Official Bulletin, July 22, 1918. ; 2. Feiss, R. A.; Personal Relationship asa Basis of Scientific Management; An. Am. Acad., May, 1916. 3. Fisher, Prof. Irving; Adjusting Wages to the Cost of Living; Monthly R., Nov., 1918. 4. Drury, H. B.; Scientific Management; London, Longmans, Green & Co., 1918. 5. A Comparative Study of Wage and Bonus Systems; Emerson Company; Gantt, H. L.; Work Wages and Profits; New York, The Engineering Magazine Co., 1916. 6. Marot, H.; The Creative Impulse in Industry; New York, Dutton & Co., 1918, p. 42. 7. Cadbury, E.; Experiments in Industrial Organization; London, Longmans, Green & Co., 1912. 8. The Welfare Work of the Metropolitan Life Insurance Company for Its Em- ployes, 1917. 9. Williams, J. M.; An Actual Account of What We have Done to Reduce Our Labor Turnover; An. Am. Acad., May, 1917. 10. Proc. of the Nat. Safety Council, 1916, p. 97. 11. Gehris, M. D.; Employment Problems and How the John B. Stetson Company Meets Them; An. Am. Acad., May, 1916. LIST OF REFERENCES 345 12. Shipman, L. H.; Inciting the Worker's Interest; 100%, Jan., 1919. 13. Miller, L. A.; Increasing File Clerks’ Efficiency by a Bonus; 100%, July, Aug., 14. Sterns, W. D.; Standardized Occupations and Rates; Ind. Man., May, 1918. 15. Marston, C. A.; A Bonus which Pays the Executive for Cutting Expenses; 100%, April, 1918. 16. Hunger, E. A.; Suggestions from Employes Help the Company Save Money; An. Am. Acad., May, 1917. 17. Lee, J. R.; The so-called Profit Sharing System of the Ford Plant; An. Am. Acad., May, 1916. iain” Profit Sharing by American Employers; New York, Nat. Civic Federation, 19, Gilman, N. P.; A Dividend to Labor; Boston, Houghton Mifflin Co., 1899. 20. Burritt,.A. W., and others; Profit Sharing; New York, Harper & Bros., 1918, p. 148 sqq. 21. New York Times, March 24, 1918. 22. Morgan, S. A.; These Plans Saved $56,000 a Year; System, Nov., 1917. 23. Ind. Man., June, 1918, p. 500. 24. Adams, T. S., and Sumner, H. L.; Labor Problems; Macmillan Co., 1909, p. 184. 25. Strikes in American Industry in War Times; Nat. Ind. Conf. Bd., Research Report No. 3, March, 1918. 26. Bond, Albert S.; Why We Are All Managers in Our Plant; Factory, Feb.,"1919. CHAPTER Ix 1. Ranney, G. A.; International Harvester Company; Chicago, Ill., Mod. Hosp., August, 1916, p. 148. 2. Health of Munition Workers Committee, Rep’t, Memo. No. 3, 1915. 83. Proude, D.; Welfare Work; London, G. Bell & Sons, Ltd., 1916, p. 193. 4. Crum, F.S.; Restaurant Facilities for Shipyard Workers; U.S. Shipping Board Emergency Fleet Corp., Industrial Relations Division, Phil., 1918. 5. Rossy, C. S.; The Factory Employes’ Restaurant; Ind. Man., March, 1918, p. 237. 6. Equipment for Factory Service Department; General Service Dep’t National Lamp Works, General Electric Co., Cleveland, O., 1913. 7. Annual Report, Memo., Mutual Service Association, 1916-1917. 8. Jones, E. D.; The Administration of Industrial Enterprise; London, Long- mans, Green & Co., 1917, p. 303. 9. A Thumbnail Sketch of the Filene Coéperative Association, 1913. 10. Welfare Work of the Metropolitan Life Insurance Company; Report, 1918. 11. Employes’ Handbook; Winchester Repeating Arms Company, 1916. 12. Cadbury, E.; Experiments in Industrial Organization ; London, Longmans, Green & Co., 1912, p. 93. 13. Health of Munition Workers Committee, Rep’t, Memo. No. 11, 1916, p. 4. 14. The Preparation of Food for Factory Employes ; General Service Dep’t, National Lamp Works, General Electric Co., Cleveland, Ohio, 1915. 15. City Restaurant as a Diet Guide; New York Times Magazine, Sunday, July 18, 1915. "16. Privileges of the Employes of the Miller & Lock Co., n.d. 17. Leverhulme, Lord; The Six Hour Day and Other Industrial Questions ; Henry Holt & Co., 1919, p. 184. 18, Welfare Work for Employes in Industrial Establishments in the United States; U. §. Bur. Lab. Stat. Bul., No. 250, Feb., 1919. 19. Weber, J. J.; Welfare Work Dennison Manufacturing Company; Mod. Hosp., Dec., 1918, p. 488-489. 20. Walker, A. K.; Looking beyond the Door of Welfare Service in the Department Store; Mod. Hosp., Aug., 1916, p. 119-122. 21. Employes’ Welfare Work; U, 8. Bur. Lab. Stat. Bul., No. 123, May, 1913. 346 THE HUMAN FACTOR IN INDUSTRY 22. Duncan, J. P.; Chicago Telephone Company, Chicago, Ill.; Mod. Hosp. Aug., 1916, p. 134-135. 23. Comas, R. T.; Welfare Work of Cincinnati and Suburban Telephone Co.; Mod. Hosp., Jan., 1917, p. 75 and 76. 24, Lovejoy, F. W.; Eastman Kodak Co., Rochester, N. Y.; Mod. Hosp., Oct., 1916, p. 349. 25. Latta, S. W.; Rest Rooms for Ratlroad Men; Bul. Nat. Civ. Fed., No. V., N. Y., 1906. 26. Busser, S. E.; The Santa Fe Reading Room System, n. d. 27. Equipment of Factory Service Department; General Service Dep't National Lamp Works, General Electric Co., Cleveland, Ohio, 1913. 28. Brown & Bigelow, St. Paul, Minn.; Mod. Hosp., Aug., 1916, p. 159. 29. Emerson, A.; Behind the Scenes in a Department Store; Outlook, Feb. 24, 1915, p. 450-455. 30. Bintz, E. B.; Factory as a Community Center; Nat. Safety Council, 1918, p. 573. 31. Crankshaw, C. W.; Prudential Life Insurance Company, Newark, N. J.; Mod. Hosp., Aug., 1916, p. 144. 32. Parke Davis & Co., Detroit, Mich.; Mod. Hosp., Aug., 1916, p. 152. 83. Shuey, E. L.; Factory People and Their Employers; N. Y., Lentilhon & Co. 1900, p. 80 and 175. 34. Jackson, J.; Noon Day Club for Girls; Proc. Employment M’g’rs Conf., U.S. Bur. Lab. Stat. Bul., No. 227, 1917, p. 171. 35. Elliott, W.; How We Keep Our Men Weil; Factory, Feb., 1919, p. 247. 36. Meeting of Officers of Local Councils, Nat. Safety Council, 1918, p. 143. 37. Pamphlets published by Industrial Department, Y. M. C. A., N. Y.; Ways and Means; Among Industrial Workers; American Workingmen; The College Man's Opportunity. 38. Lee, R. E.; Industrial Service in a Tire Factory; Mod. Hosp., May, 1917, p. 353. ' 39. Clough, F. E.; Welfare Work of Homestake Mining Company, Leadville, South Dakota; Mod. Hosp., Jan., 1917, p. 74. 40. Jackson, J.; Strawbridge & Clothier Chorus; Proc. of Employment M’g’rs, Conf., U. S. Bur. Lab. Stat. Bul., No. 227, 1917, p. 170-171. 41. Gilson, M. B.; Service Work of Clothcraft Shops; Proc. of Employment M’g’rs, Conf., U. S. Bur. Lab. Stat. Bul., No. 227, 1917, p. 150. 42. Welfare Work of Kohler Industries, Feb., 1917. 43. Wells, F. O.; An Employes’ Engineering Club; Ind. Man., June, 1919, p. 443. 44. Taplin, H. B.; Employes at Macy's New York Conduct Welfare Work; Mod. Hosp., Oct., 1916, p. 258. 45. Welfare Work of the Metropolitan Life Insurance Company, 1917. 46. Walsh, W. H.; Welfare and Efficiency at the Same Time; Mod. Hosp., Aug., 1916, p. 118. 47, Cary, H.; Keeping Employes Happy; Mod. Hosp., March, 1917, p. 232. 48. Lord, C. B.; Athletics for the Working Force; Ind. Man., Oct., 1917, p. 44. 49. From Boston Transcript, Oct. 22, 1913, Coolidge, L. A.; United Shoe Machi- nery Company. 50. Factory, July, 1918, p. 98. 51. Pierce, P. S.; Employers’ Welfare Work in Iowa; Bul. State University of Towa, No. 13, Dec. 15, 1915. 52. Interview with F. Kohn, Vice President International Garment Workers’ Union, July 18, 1919. 53. Rep’t of International Garment Workers’ Union, Am. Fed. Lab., 1919. CHAPTER X 1. Cadbury, G., Jr.; Town Planning; London, Longmans, Green & Co., 1915, p. 123. 2. Allen. L. H.; The Problem of Industrial Housing; Ind. Man., Dec., 1917, p. 396; 404, LIST OF REFERENCES 347 3. Homes for Workmen; Southern Pine Association, New Orleans, 1919, p. 10. 4. Kennedy, D. R.; Housing by Employers in the United States; Proceedings, Sixth Nat. Conf. on Housing, Chicago, 1917, p. 249-253. 5. Groben, W. E.; Modern Industrial Housing; Pub. by Ballinger & Perrot, Architects and Engineers, Phil. and N. Y., 1918. Foreword and p. 9. 6. Fisher, Boyd; Good Housing as a Reducer of Labor Turnover; Proc. Nat. Housing Ass'n, 1918, p. 150. 7. War Housing Problems in America; Nat. Housing Ass’n, Feb., 1918, p. 108. 8. Housing Betterment; Quarterly Pub. of Nat. Housing Ass’n, June, 1919, p. 39. 9, Bruére, R. W.; Following the Trail of the I. W. W.; New York Evening Post, 1918. 10. Resolution Adopted at Meeting of New York Board of Health, Oct. 5, 1918. 11. Rep’t of the U. S. Housing Corporation; U.S. Bur. Indus. Housing and Trans- portation, Dec., 1918, p. 13-15. , 12. Girls’ Welfare, Nat. Catholic War Council Committee on Special War Activities, ug., 1919. 18. Wood, E. E.; The Housing of the Unskilled Wage Earner; Macmillan, 1919, p. 117-120, 233-234. 14. Adams, T. S., Sumner, H. L.; Labor Problems; Macmillan, 1909, p. 392. 15. Nolen, J.; Industrial Housing; Cambridge, Mass., 1918, p. 15. 16. Taylor, G. R.; Satellite Cities; D. Appleton & Co., N. Y. and London, 1915, p. 6, 35, 99-100, 237. : 17. Lee, R. E.; How Akron Grappled with its Housing Shortage; Proceedings Sixth Nat. Conf. on Housing, Oct., 1917, p. 60-66. 18. Housing Progress of the Year; Rep't of Sec’t’y of Nat. Housing Ass’n, Oct., 1917, p. 399, 409. 19. Magnusson, L. F.; Housing by Employers in the United States; Proceedings Sixth Nat. Conf. on Housing, Chicago, 1917, p. 106-129. 20. Bul. Bur. Lab., 1904, Part IT, p. 1198. 21. Monthly Bul. Am. Iron and Steel Institute, No. 8, Aug., 1916, p. 223. 22. Bul. United States Steel Corporation, No. 7, Dec., 1918. 23. Culpin, E. G.; Garden City Principles; Nat. Conf. Prevention of Destitution, 1912, P. S. King & Son, p. 292. 24. Russel, T.; Welfare Projects of the Cadburys at Bournville; Dodge Idea, Nov., 1916. 25. Take your Choice, Home or Hovel; The Connecticut Mills Co., Danielson, Conn., n. d. : 26. Apel, F.; Housing by Employers in the United States; Proceedings Sixth Nat. Conf. on Housing, Chicago, 1917, p. 254-257. 27. Frankel, Lee K.; How Insurance Companies Can Help Housing; First Town Planning Conf., Boston, Nov., 1913. 28. May, C. C.; Indian Hill, an Industrial Village for the Norton Co., Worcester, Mass.; Nat. Housing Ass’n Pub., No. 40, July, 1917. 29. Veiller, L.; Industrial Housing Developments in America; Nat. Housing Ass’n Pub., No. 47, May, 1918. 30. Veiller, L.; Industrial Housing Developments in America; Nat. Housing Ass’n Pub., No. 46, Mar., 1918. 31. Monthly Lab. R., July, 1919, p. 147-148. 32. Hamlin, W. A.; Low Cost Cottage Construction in America; Cambridge, Mass., 1917, p. 28. 33. Nolen, J.; A Good Home for Every Wage Earner; Address U. S. League of Local B’ld’g and Loan Ass’n, July, 1917. 34. Whitaker, C. H., Ackerman, F. L., Childs, R. 8., Wood, E. E.; The Housing Problem in War and Peace; J’n’] Am. Institute of Architects, 1918. 35. Furniss, 8.; Chap. on The Workingwoman's House; Women and the Labor Party, Ed. by Dr. M. Phillips, Huebsch, N. Y., 1918. ° 36. Housing Workers in a Powder Plant; Survey, Apr. 26, 1919. 37. Monthly R., Dec., 1917, p. 217. 38. Mo. Bul. Am. Iron and Steel Institute; No. 6, June, 1916. 39. Proud, E. D.; Welfare Work; London, G. Bell & Sons, Ltd., 1916. 348 THE HUMAN FACTOR IN INDUSTRY 40. Goodyear Heights; The Goodyear Tire and Rubber Company, Akron, Ohio, 1913. 41. Chandler, W. L.; Financial Aids for Employes; Ind. Man., Oct., 1917, p. 36-43. 42, Commons, J. R., Andrews, J. B.; Principles of Labor Legislation; Harper & Bros., 1916, p. 55. 43. Warbasse, J. P.; Codperative Buying among Employes, n. d. 44, A Survey of Typical Codperative Stores in the United States; U.S. Dep’t of Agric. Bul., No. 394, p. 26-29. 45. Employers’ Welfare Work; U.S. Bur. Lab. Stat. Bul., No. 123, May, 1913. 46. Mod. Hosp., Oct., 1916, p. 166. 47. Wright, F. 8.; The Visiting Nurse in Industrial Welfare Work; The Pub. Health Nurse Quar., Jan., 1917, p. 73-79. 48. Mod. Hosp., Oct., 1916, p. 349. 49. Mod. Hosp., Aug., 1916, p. 162. 50. Industrial Welfare Work in One of the Zones; The Pub. Health Nurse Quar., Jan., 1917, p. 73-79. 51. Forty-First Rep’t of Bur. of Indus. Stat., Pa., 19138-1914, 52. Factory, July, 1918, p. 98. 53. Mod. Hosp., Nov., 1916, p. 433. 54. Mo. Bul. Am. Iron and Steel Institute, No. 2, Feb., 1914. 55. Shaw, 8. L.; The Makings for Revolution; New Republic, Aug. 13, 1919, p. 52-54, 56. Mo. Bul. Am. Iron and Steel Institute, No. 7, July, 1914. CHAPTER XI 1. Rubinow, I. M.; Social Insurance; Henry Holt & Co., N. Y., 1913, p. 115, 225, 414, 419. 2. Clark, L. D.; Workmen’s Compensation Legislation of the United States and Foreign Countries, 1917 and 1918; U.S. Bur. Lab. Stat. Bul., No. 243, 1918, p. 7-9. 3. Commons, J. R.; Industrial Goodwill; McGraw-Hill, 1919. 4. Sickness Insurance or Sickness Prevention; Research Study No. 6, May, 1918, Nat. Indus. Conf. Board. 5. California Social Insurance Commission Rep't; 1917, p. 15. Commission on Public Welfare in State of Connecticut; Rep’t, 1919, p. 50. 6. Ohio Health and Old Age Insurance Commission Rep’t; Columbus, Feb. 1919, p. 2. 7. Workmen's Insurance and Benefit Funds in the United States; Twenty-third Annual Rep’t U. S. Commissioner of Labor, 1908, p. 18, 219, 419, 426. 8. Sydenstricker, E.; Existing Agencies for Health Insurance in the United States ; U.S. Bur. Lab. Stat. Bul., No. 212, 1917, p. 430-475. 9. Chandler, W. L.; Employes’ Benefit Assoctations; Ind. Man., Jan., Feb., Mar., Apr., June, July, 1918. 10. Ranney, G. A.; Employes’ Benefit Association of the International Harvester Co. ; U.S. Bur. Lab. Stat. Bul., No. 212, 1917, p. 482-490. 11. Eaton, J. M.; Industrial Welfare Work a Factor in Modern Management; Mod. Hosp., Aug., 1916, p. 106. 12. Huyck, F. C.; Establishment Funds and Universal Health Insurance; Am. Labor Leg. R., Mar., 1917, p. 85-90. 13. Rice, E. E.; Growp Insurance for the Industrial Worker; Ind. Man., Mar., 1919, p. 234-236, 14. Feiss, R. A.; Personal Relationship as a Basis of Scientific Management; An. Am. Acad., May, 1916, p. 27-56. 15. Henderson, C. R.; Industrial Insurance in the United States; Univ. of Chicago Press, 1919, p. 119. a 16. Rules Governing Home Office Clerical Employes; Metropolitan Life Insurance Co., 1918. 17. Frankel, Lee K.; Some Fundamental Considerations in Health Insurance; U.S. Bur. Lab. Stat. Bul., No. 212, 1917, p. 598-605. LIST OF REFERENCES 349 18. Day, W. F.; Group Insurance; U.S, Bur. Lab. Stat. Bul., No. 212, 1917, p. 421-429. ; 19. Ins. Year Book, Spectator Co., 1919. 20. Consolidated Chart, 1919 Edition, Pub. Fraternal Monitor. 21. Correspondence of the Metropolitan Life Insurance Co., New York. 22. Frankel, Lee K., Dawson, M. L.; Workingmen's Insurance in Europe; Russell Sage Foundation, 1910, p. 9. A 23. Tucker, G. D.; Physical Examination of Employes Engaged in the Manufacture of Portland Cement; Am. J. Pub. Health, June, 1915, p. 570. 24, Harwood, E. R.; Methods of Insuring Workmen’s Compensation; An. Am. Acad., Mar., 1917, p. 253. 4 25. Squier, L. W.; Old Age Pensions; Macmillan Co., 1912, p. 16, 25, 64, 67, 105, 259. 26. The Problem of Pensions; Bul. Nat. Civic Fed., Jan., 1916. 27. Plan for Employes’ Pensions, Disability Benefits, and Insurance; American Tel. and Tel. Co., Jan., 1913. 28. Dawson, M. M.; Service Pensions and Pension Funds; U. 8. Bureau Lab. Stat. Bul., No. 212, p. 730-741. 29. Brodsky, R. J.; Social and Fraternal Insurance; Fraternal Monitor, Jan. 1911, p. 20-21. 30. Monthly R.; Mar., 1919, p. 119. 31. Ham, A. H., Robinson, L. G.; A Credit Union Primer; July, 1918, p. 13. 32. Company Savings and Loan Plans; Bul. Nat. Ass’n Corp. Schools, Nov., 1917. 33. Chandler, W. L.; Financial Aids for Employes; Ind. Man., Oct., 1917, p. 36-43. 34. Burritt, A. W., Dennison, H. S., Gay, E. F., Heilman, R. E., Kendall, H. P.; Profit Sharing, Its Principles and Practice; Harper & Bros., 1918. 35. Rochester Herald, Apr. 4, 1919, Eastman Kodak Co., Letter to Employes; May 28, 1919. 1 36. Ham, A. H.; People’s Banks; Russell Sage Foundation, Aug., 1916. 37. How I Freed Our Men from Loan Sharks; by the Service Manager of a Michigan Manufacturing Plant, Factory, Mar., 1919, p. 459-461. CHAPTER XII 1. Organizing the Employment Department; Handbook on Employment Manage- ment, U. S. Shipping Bd. Emergency Fleet Corp. ‘i 2. Person, H. 8.; University Schools of Business and the Training of Employment Executives; An. Am. Acad., May, 1916. 3. Selby, C. D.; Studies of the Medical and Surgical Care of Industrial Workers; Bul. Pub. Health, U. S. Pub. Health Service, No. 99. 4. Leiserson, W. M.; Employment Management, Employe Representation, and Industrial Democracy; Address at Nat. Ass’n Employment M’g’rs, May, 1919, Printed by U. 8S. Working Conditions Service. 5. U.S. Bur. Lab, Stat. Bul., No. 221, p. 551. KEY TO BIBLIOGRAPHY Am. Ass’n Ind. Phys. and Surgeons. — American Association of Industrial Physi- cians and Surgeons. Am. Ass’n Lab. Legis. — American Association for Labor Legislation. Am. J. Care of Cripples. — American Journal for the Care of Cripples. Am. J. Pub. Health. — American Journal of Public Health. Am. Labor Legis. R. — American Labor Legislation Review. Am. Stat. Ass’n Q. — American Statistical Association Quarterly. An. Am. Acad. — Annals of the American Academy of Political and Social Science. Bul. Chic. Tub. Inst. — Bulletin of the Chicago Tuberculosis Institute. Bul. Ind. Commission of Ohio. — Bulletin of the Industrial Commission of Ohio. 350 THE HUMAN FACTOR IN INDUSTRY Bul. Pa, Dept. of Lab. and Ind. — Bulletin of the Pennsylvania Department of Labor and Industry. Col. Univ. Studies in Pol. Sci. — Columbia University Studies in Political Science. Con. of Nat. Ass’n of Employment M’g’rs. — Convention of the National Asso- ciation of Employment Managers. Health of Munition Workers. — Health of Munition Workers Committee (British), Ministry of Munitions. Ind. Man. — Industrial Management Magazine. J. Am. Institute of Architects. — Journal of the American Institute of Architects. J, Amer, Med. Ass’n. — Journal of the American Medical Association. J. Ind. Hyg. — Journal of Industrial Hygiene. Med. Rev. of Rev. — Medical Review of Reviews. Mod. Hos. — Modern Hospital Magazine. Mo. Bul. Am. Iron & Steel Institute. — Monthly Bulletin of the American Iron and Steel Institute. Mo. Bul. Dep’t Health — Monthly Bulletin of the Department of Health. Monthly R. — Monthly Review of the United States Bureau of Labor Statistics. Nat. Ass’n Corp. Schools. — National Association of Corporation Schools. Nat. Ass’n Study and Prev. of Tub. — National Association for the Study and Prevention of Tuberculosis. Nat. Civic Fed. — National Civic Federation. Nat. Housing Ass’n. — National Housing Association. Nat. Ind. Conf. Bd. — National Industrial Conference Board. Nat. Soc. of Voc. Ed. — National Society of Vocational Education. Pa. Dep't Labor and Ind. Bul. — Monthly Bulletin of the Pennsylvania Depart- ment of Labor and Industry. Proc. Nat. Safety Council. — Proceedings of the National Safety Council. Pub. Health Bul., U. 8. Pub. Health Serv. — Public Health Bulletin of the United States Health Service. Pub. Health Nurs. Quar. — Public Health Nursing Quarterly. Rep’t of Bur. of Indus. Stat. Pa. — Report of the Bureau of Industry and Statis- tics of Pennsylvania. Rep’t Ind. Com. of Wis. — Report of the Industrial Commission of Wisconsin. U.S. Bur. Lab. Stat. Bul. — Bulletin of the United States Bureau of Labor Statis- tios. U. S. Dep’t of Agric. Bul. — Bulletin of the United States Department of Agri- culture. U. S. Ship. Bd. Em. Fleet Corp. — United States Shipping Board Emergency Fleet Corporation. U. S. Steel Corp. — United States Steel Corporation. NOTE Since the writing of these chapters, the following important publications have appeared. These are of special interest. Gearhart, Edna B.; Work Shop Committees ; list of References on ‘‘ Special Libraries,’’ Oct., 1919, p. 203-208. Link, Henry C.; Employment Psychology. N.Y. Macmillan Co. Mock, Harry E.; Industrial Medicine and Surgery. Phila. Saunders. Polakov, Walter N.; Fatigue and Industrial Efficiency; Industrial Management, Dec., 1919, pp. 448 ff. Ramsey, Robert E.; Effective House Organs. N.Y. Appleton. Spaeth, Reynold A.; Prevention of Fatigue in Industry; Industrial Management, series beginning in January, 1920. Warren, Katherine; Labor Turnover; list of References on ‘Special Libraries,” Oct., 1919, p. 189-203. INDEX Absences, labor loss from, 65; in- vestigations of, 66-67. Absenteeism records, deductions from, 192. Accident insurance, 307-309. Accidents, schedule of, a measure of fatigue, 115, 120-121; slight re- lation between night work and, 123-124; schedule of, for different days of week, 128; daily distribu- tion of, 129; growth of movement for prevention of, 135-136: possi- bility of preventing, 136-137; physical examinations a preventive of, 140; wearing of uniforms a preventive measure, 152; effi- ciency affected by, 209; money rewards as preventive of, 210— 211. Advertising, as a method of securing applicants, 32-34. Age, as a predisposing factor in in- dustrial diseases, 144-145. Age limit for employes, extension of, 46. Akron, industrial housing at, 267— 268. Alexander, M., cited, data collected by, 192. Altman & Company, rest rooms of, 235; gymnasium maintained by, 241. American Association of Industrial Physicians and Surgeons, 165. American Bridge Company, garden- ing prizes of, 286. American Industry, magazine, 13. Americanization plans for employes, 99-100; the safety movement and, 141. American Locomotive Company, special training system of, 94. American Museum of Safety, or- ganization of, 136. 187, 189; American Pulley Company, instruc- tion of new employes by, 91. American Rolling Mill, reading room for foreign workmen at, 104. American Steel and Wire Company, special training given selected salesmen by, 94. American Telephone and Telegraph Company, rest room of, 235; pension system of, 314. American Tobacco Company, ex- periment by, men, 54. American Viscose Company, housing developed at Marcus Hook by, 268, 273, 280. American Woolen Company, rooms of, 236. Annuity system of old-age insurance, 311-312. Applicants, methods of securing, for jobs, 28 ff.; sources of recom- ~ mendations, 30-32; advertising for, 32-34; scouting system for securing, 34-35; use of psycho- logical tests for, 55-58. Application blanks, use of, 29-30; subjects covered on, 50-51; value of, in way of permanency, 51-52; more time required in hiring im- plied by, 52. Appraisers’ Office, New York, credit union in, 323. aM Apprenticeship schools, introduction of, 85-87; railroad, 87; codpera- tion of public schools and, 87- 88. Apprenticeship system, welfare work connected with, 6-8; breakdown of old, 80-81; of National City Bank, New York, 97-98. Arbeiter Ring Sanatorium, 195. Armstrong Cork Company, dental work for employes of, 179. in selecting sales- rest 351 302 Army, scale for rating ability of officers in, 54-55. Arrangement of employment office, 75. Artificial illumination, standards of, 154, Atchison, Topeka and Santa Fe R. R., apprenticeship school of, 87; rest and recreation rooms of, 237, 239. Athletic associations, employes’, 253. Athletic fields for employes, 248-249. Athletics during noon hour, 241. Attendance, correction of bad, 65— 67; efficiency affected by, 209; futility of fines for bad, 209-210; bonuses for good, 210. Auditoriums for use of employes, 247. Australia, old-age pension system in, 316. Avery Company, figures from, on cost of safety and medical work, 140; bulletins on oral hygiene distributed by, 179. Bands, employes’, 250-251. Barre, Mass., Wool Combing Com- pany, houses built by, 276. Baseball for employes, 254-255. Basic wage, fixing the, 201-203. Baths, provision for, in factories, 148-149. Belgium, insurance of mining com- panies’ employes in, 11. Benefit associations, employes’, 297; co6peration of employers and employes in, 299-300; employers’ judgment of, 300; insurance carried by members of, 304; old- age benefits paid by, 312. Black Company, vacations for em- ployes of, 131. Blackford, Katherine, cited, 53. Blanzy mining company, labor ad- ministration by, 10. Blind, vocational training of the, 91-92. “Blind” and “open”’ advertising for applicants, 32-33. Bloomfield, Meyer, analysis of jobs at Bamberger store by, 41. Bonuses to employees, to remedy INDEX tardiness and absenteeism, 67; to prevent accidents, 210-211; for yearly service, 211. Bonus methods of wages, 204-206. Books for employes, 104. Boston Employment Managers’ As- sociation, 27; analysis of causes of labor turnover suggested by, 72. Bournville Works, evening classes at, 102; vacations for employes of, 131; fire protection at, 159- 160, 161; refreshments served at, 231-232. Brick construction for houses, 276. Bridgeport, Conn., housing problem at, 261, 268. Brooklyn Rapid Transit Company, health bulletins issued by, 199. Brown, Bigelow & Co., noon hour diversions at, 241; social gather- ings of employes of, 254. Bruere, Robert, investigations by, 262. Building and loan associations, 265— 266; an important contribution to codperative credit movement, 318. Bureau of Working Conditions of U.S. Department of Labor, 14. Burham, club house at, 291. Burke, Mr., of Detroit Steel Prod- ucts Company, 44. Burritt, A. S., 217. Burroughs Adding Machine Com- pany, salesmanship school of, 90—- 91; meetings of executives of, 104. Bush Terminal Company, health work of, 287. By-Product Coke Plant, house de- velopment plan of, 280. Cadbury Works, scheme at, 219. Cadillac Motor Company, mutual benefit association of, 299. Cafeterias for employes, 228-229; equipment of, 229; cost of food, 229-231; menus and diet in, 232- 233. California labor camps, living con- ditions in, 262. Camps for employes, 249. profit-sharing INDEX Casino Technical Night School, East Pittsburgh, 84-85. Chandler, W. L., study of mutual benefit associations by, 297-298. Charles William Stores, plant organ of, 107. Checks, payment of wages in, 220- 221; self-identifying, 221. Cheney Brothers, testing of em- ployes by, 56; questionnaire used by, 63; entrance tests as a basis for promotion at, 73; care of em- ployes’ eyes at, 180. Chicago Telephone Company, rest rooms of, 236; social clubs of, 254. Chicago Tuberculosis Institute, work of, 182-183, 186. Child labor, accident list increased by, 141. Childs, R. S., suggestion by, con- cerning land costs, 277. China, experiments in labor ad- ministration in, 18-19. Choral societies, employes’, 251. Cincinnati, housing of factory workers in, 266-267. Cincinnati, University of, College of Engineering at, 77. Cincinnati & Suburban Telephone Company, rest rooms of, 236; vacation home for employes of, 249. Cities, movement of factories away from, 267. Clark Thread Company, work of, 287. Clayton, C. T., quoted, 77. Cleanliness, prevention of disease by, 144; various benefits of, 148. Cleveland Cliffs Iron Company, community club house of, 291. Cleveland Foundry Company, plan followed by, with plant physician, 189. Cleveland Hardware Company, re- sults of shorter working day at, 118. Clinics, dental, optical, and medical, 177-181, 196-197. Club houses for employes, 244-245; different types of, 245-246; suc- cesses and failures of plans for, 2a health 353 246-247; open to the community, 290-291. Club rooms for employes, 244-245. Clubs, employes’, 242, 250; edu- cational, 252-253; social, 254. Colleges, courses at, in labor ad- ministration, 13; securing of em- ployes from, 35. Colorado Fuel and Iron Company, health education conducted by, 199; housing development by, 269; company stores of, 284; health work of, 287; recreational activities of, 290; educational work of, 291. Columbia University, courses in employment management at, 13. Combination Rubber Company, blind employes of, 92. Committee, the workshop, 223. Commonwealth Edison Company, suggestion system used by, 213. Community, attitude of the, toward labor administration, 5; the em- ployer and the, 260-292. | Community health work, 286-288. Company hospitals, 181-182. | Company houses, 274-275. See Housing conditions. Company stores, 283-285. Concerts and _ entertainments noon hour diversions, 241-242. Concrete construction for houses, 276. Connecticut Mills Company, housing policy of, 271. Consolidated Safety Pin Company, blind employes of, 92. Continental Motor Company, cafe- teria at, 231; management of restaurant at, 233. Continual schools, 103. Codperative stores, 283; educational value of so-called, 285. Cornell College of Engineering, 13. Correspondence classes for training employes, 95-96. Cost of living, basing of wages on, 202. Country clubs for employes, 246. Crane Company, medical depart- ment established by, 164, 176; tuberculosis sanatorium of, 182. as 354 Credit unions, 321-323. Creusot Steel Works, labor adminis- tration in, 10. Crippled, vocational training of the, 91-92. Crocker-Wheeler Company, employ- ment of blind persons by, 61, 92. Cultural classes for employes, 101-— 102. Curtis Aeroplane Corporation, vesti- bule school of, 89. Curtis Publishing Company, results to, of introduction of centralized employment bureau, 25; principles observed by, in engaging appli- eants for positions, 31; securing of employes from schools by, 35; job specification blank used by, 45; method used by, for filing application blanks, 52; judgment -of applicant’s personality by em- ployment manager of, 54; use of psychological tests by, 57; rule books for employes of, 64; ap- prentice school for compositors maintained by, 86; rest rooms of, 235; summer camp for younger employes of, 249. Dancing during noon hour, 240-241. Darlington, Thomas, quoted on com- pany stores, 284. Dartmouth College, School at, 13. Dawson, M. M., cited, 315. Deere and Company, cost of labor turnover at, 70. Denmark, old-age pensions in, 316. Dennison, H. S., 217. Dennison Manufacturing Company, results to, of introduction of centralized employment bureau, 25; employes secured from schools by, 35; rule books for employes of, 64; reduction of labor turnover at, 71; transfers of employes at, 73; training class for new em- ployes of, 90; special training for foremen of, 95; promotion plan used by, 97; health bulletins and pamphlets issued by, 199; rest room of, 234, 239. Dental clinics, in industrial con- Amos Tuck INDEX cerns, 177-179; of women gar- ment workers in New York City, 197. Department store rest rooms, 235. Detroit, Visiting Nurse Association of, 190. Detroit Executives’ Clubs, study of sanitary standards by, 146. Devine, E. T., cited on old-age de- pendency, 310. Disability pensions, 315. Disease, occupational, and its pre- vention, 142-146. Dispensary. See Medical care. Dodge Idea, magazine, 13. Dodge Manufacturing Company, em- ployes’ coéperative club organized by, 283; employes’ benefit associa- tion of, 297-298; Thrift Club of, 320. Dold Packing Company, profit- sharing and management-sharing at, 225. Dressing rooms for employes, 151. Du Pont Powder Company, teach- ing of English to employes of, 100. Eastman Kodak Company, health bulletins issued by, 199; sug- gestion system used by, 213, 215; Kodak Park provided by, 289; stock-purchase plan of, 321. Eclipse Park, houses at, 274-275, 277. Economy of shorter working day, 116-122. Edison Company, forms used by, for references, 62. Education, need for industrial, 77; public provision for industrial, 77-78; plans for giving a general, 98-110; on health subjects, 197- 199; work in, for the community, 291. Educational activities during noon hour, 242-243. Educational clubs, 252-253. Efficiency, impairment of, by fatigue, 113; relation between wages and, 203-204; affected by attendance, accidents, and codperation, 209; hope of promotion as a factor in, 212. INDEX Efficiency engineer, evolution of the, 13. Efficiency movement, development of, 14-15. Emergency equipment, 173; a model, 175-176. Emergency Fleet Corporation, course for instructors given by, 89. Employes, value of labor adminis- tration to, 5-6; methods of hiring and holding, 20 ff.; extension of age limits of, 46; elements de- termining selection of, 47-63; inducting and retaining, 63-76. Employment agencies, private, 36— 87; special, 37; public, 37-38; the United States Federal Em- ployment Service, 38-39. Employment department, arguments for introduction of, 22 ff.; argu- ments for a centralized, 24-28; methods of securing applicants by, 28-40; use of job specification, 40-46. Employment management, courses in, 13. Employment manager, rise of the, 13; use of foreman as, 22-23; securing of applicants by, 28-40; qualifications of, 329-330. Employment Managers’ Association, 14; the first, 27. Employment office, location and arrangement of, 75; records to be included in files of, 76. Endicott Johnson Company, swim- ming pool built by, 289. Engineering Magazine, 14 n. Engineers’ clubs, 252. Engis Chemical Works, effect of shortening working hours at, 122. England, public employment agencies in, 38; new Education Bill in, 78. English, classes in, for employes, 99. Essen Steel Works, welfare institu- tions at, 11, 19. Europe, early experiments in welfare work in, 8-11. Examinations, psychological, of ap- plicants, 55-58; physical, 59-62; benefit of periodic physical, 166- 167; purpose and value of medical, 168-173. in plants, college 355 Executives, special training courses for, 95-96; bonuses to, for savings effected, 213. Eyes, care of, of employes, 179-181. Factory, manufacturers’ magazine, 13. Factory specials for employes, 266— 267. Fairfield, industrial village, 274. Farnum, C. G., quoted, 45-46, 61. Fatigue, meaning of, and effect on efficiency, 112-113; causes of, 113; causes of, inherent in machine production, 113-114; means of measuring, 114-116; lack of varia- tion in, during year, week, or day, 127; variation in, during the work period, 128-129; rest periods as a preventive of, 129. Feiss, R., quoted on employment management, 25. Field & Company, recreation room of, 235. Field days for employes, 256-257. Filene Sons Company, vacations for employes of, 131; Codperative Association dining room at, 231; committee management for Co- éperative Association dining room at, 232-233; vacation bureau for employes of, 250; musical or- ganizations at, 251; management of recreational work of, 257-258; Savings and Loan Bureau of, 319. Files for employment office, records for inclusion in, 76. Financing of industrial housing, 271-— 273. Fines, futility of, method, 209-210. Fire protection, need for and meas- ures of, 159-162. Firestone Tire and Rubber Company, club house of, 245; housing de- veloped at Akron by, 268. First-aid kits in factories, 173. Fish, E. H., 72. Fisher, Boyd, quoted on cost of labor turnover, 69-70. Fisk Rubber Company, reduction of accidents by, 138. Fitchburg High School, system in, 81. as reformative part-time 356 Follow-up work with new employes, 64-65. Ford Motor Company, introduction of centralized employment bureau by, and results, 25-26; use of application blank by, 30; cost of labor turnover at, 70; transfers of employes at, 73; employment of blind and crippled by, 92; results of English classes at, 99; work day at, 127; bonus-for-good- conduct system at, 215-216. Foreigners, plans for education of, by industrial plants, 98-101; news- papers supplied for, 104; health education for, 199. Foremen, as employment managers, 22; complex duties of, 22; argu- ments against use of, as employ- ment managers, 23; relief of, by employment department, 26; special training for, 95. Fore River Shipbuilding Corporation, introduction of employment de- partment by, 27-28; scouting and advertising scheme of, 34; ap- prenticeship system of, in coépera- tion with public schools, 87-88; promotion plan used by, 97. France, early experiments in labor administration in, 10; societies in, for mutual aid, 293; old-age pensions in, 316. Fraternal societies, sickness insur- ance by, 297; life insurance by, 306; old-age benefits paid by, 312. Free lunches for employes, 231. Gain sharing, plan for, 217. Gantt task and bonus system of remuneration of employes, 206. Gardens for employes, 285-286. Garment workers, women, in New York City, codperative medical care of, 195-197; recreational ac- tivities of, 258-259. Gary, laissez-faire policy as housing at, 270. Gay, E. F., 217. General Chemical Company, plant organ of, 108. General Electrical Company, secur- to INDEX ing of employes from schools and colleges by, 35; group insurance of employes of, 305. General Railway Signal Company, job specification blank used by, 41-42. German-American Button Company, 45. Germany, public employment agen- cies in, 38; system of industrial education in, 77-78; industrial schools of, examples of continua- tion schools, 103. Gilbreth, Frank, ‘Fatigue Study” by, 130. Gilbreth, Mr. and Mrs. Frank, three positions plan of promotion put in operation by, 96. Gimbel Brothers, employes’ chestra of, 252. Girard, J. W., quoted, 263. Glee clubs, employes’, 251. Good-conduct bonuses, 215-216. Goodrich Company, plant organ of, 110; value of dental clinic shown by, 177. Goodyear Tire and Rubber Company, “Flying Squadron’”’ of, 96; meet- ings of foremen of, 104-105; plant organ of, 108; housing de- veloped at Akron by, 268; stucco used for houses by, 276-277; housing restrictions of, 281-282. Gorham Manufacturing Company, noon hour diversions at, 241; athletic field of, 248. Gould, E. C., cited on labor turnover, 71. Great Britain, societies in, for mutual aid, 293; old-age pensions in, 316. See England. Greenfield Tap and Die Corporation, Employes’ Engineering Club of, 105. Group insurance, 300-301; in field of life insurance, 304-305, 306-307. Guilds, welfare work in medieval, 6-8. Guild system, origin of term ‘‘labor turnover”’ in, 15 n. Gun clubs, employes’, 255. Gwinn, community club house at, 291. or- INDEX Gymnasiums for employes, 241, 247- 248; classes in, 256-257. Halpern, Dr. Julius, 195. Halsey’s premium wage system, 205. Ham, A. H., co-author of Credit Union Primer, 323. Hamlin, W. A., quoted on construc- tion of houses, 277. Handbooks for employes, 64. Hart, Schaffner, and Marx Company, experiments of, with employment of older men, 46. Harvard School of Business Ad- ministration, 13. Hayes Manufacturing Company, re- sults to, of centralized employment bureau, 26. Hayhurst, E. R., on occupational disease, 142. Health, relation between short hours and, 121. Health education for employes, 100-— 101, 197-199. Health work, community, 286-288. Heilman, R. E., 217. Heinz Company, entertainments for employes of, 254. Hercules Powder Company, housing conditions at, 279. Hershey, Pa., community work at, 289; educational activities at, 291, High schools, part-time courses in, 81. Hollow tile construction for houses, 276. Home nursing in connection with industrial plants, 190. Homes registration, 264-265. Homestake Mining Company, recrea- tion building of, 245; swimming pool of, 248. Homestead, Pa., poor conditions in, 290. Hospitals for employes, 286-287. Houses, type of company, 274-275. Housing conditions, industrial, 260— 263; urban, for employes, 263- 266; where industry is dominant factor in the community, 267- 282. 181-182, 357 Housing costs, 275-276. Hubbard, Charles L., article on “Factory Water Supply,” cited, 150. Huyck and Sons, employes’ benefit association of, 300. Hyatt, Dr., table by, 178. Iceland, old-age pensions in, 316. Illinois, codéperative stores organized by mine workers in, 284. Illinois Steel Company, evening classes maintained by, 85; ex- perience of, in reducing accidents, 137. Illness, extent of, in industry, 163; *an industrial problem, 163-164. Indian Hill, industrial village, 271, 273, Industrial accident insurance, 307- 309. Industrial betterment, 2. Industrial counselors, 13. Industrial education. See Educa- tion. Industrial fatigue. See Fatigue. Industrial Management, magazine, 13. Insurance, for wage earners, 294— 295; sickness, 294, 296-303; life, 303-307 ; old-age, 309-317. Interborough Rapid Transit Com- pany, recreation rooms of, 237. International Equipment Harvester Company, club house of, 245. International Harvester Company, reduction of accidents by, 136— 137; medical examinations of employes by, 172; Mutual Bene- fit Association of, 299; death benefit plan of, 305; stock-pur- chase plan of, 320-321. International Ladies’ Garment Workers’ Union, educational ac- tivities of, 102-103; recreational activities managed by, 258. See Garment workers. International Typographical Union, courses given by, 81. Interview, the preliminary, in selec- tion of employe, 49; the second, 53; the follow-up, 64-65; with employes who are leaving, 72. Invalidity insurance, 315. 358 Jeffrey Manufacturing Company, factory restaurant at, 232. Job, fitting the employe to the, 21- 22. Job selling by foremen, 23. Job specification, description of, 40- 45; advantages of, 45; future of, 45-46. Joint Board of Sanitary Control, the, 195-196. Joseph and Feiss Company, method of filing application blanks by, 51; importance of applicant’s personality emphasized by, 53; tests of employes by, 56; method of instructing new operatives used by, 91; results of introduction of 40-hour week at, 119; care of em- ployes’ eyes by, 180; wages and profits at, 201-202: sickness in- surance system at, 300-301; penny bank system at, 319-320. Kaul Lumber Company, housing policy of, 271. Kaulton, industrial village, 274. Kelly, R. W., on methods of select- ing employes, 48-49; analysis of effect of transfer and promotion by, 74. Kendall, H. P., 217. Kent, Professor, laboratory tests of industrial fatigue by, 116, 124. Kimberly Clark Company, dental work among employes of, 179. Kitchen equipment of lunch rooms and cafeterias, 229. Kodak Park Works, suggestion sys- tem at, 213-215. Kohler Industries, Progress Club of, 252. Kops Brothers, self-supporting cafe- teria at, 230. Korach and Company, dances ar- ranged by union in, 258. Krupp Works, welfare institutions of, 11, 19. Labor administration, function of, 1 ff.; organization of departments of, 2-3; activities with which concerned, 3; standards _ for evaluating, 3-6; origins and his- INDEX tory of, 6-12; becomes a pro- fession, 12-13; college courses in, 13; reasons for new interest in, 14; scope of problems of, 18; an international experiment, 18— 19; organization of department of, 326ff.; purpose of, 326; need for experts in, 328-329; qualifications of employment manager, 329-330; the industrial physician and medical department, 330-332; department organiza- tion, 332. Laboratory tests of industrial fatigue, 116. Labor loss from tardiness and ab- sence, 65. Labor maintenance service, defined, 3n. Labor turnover, definitions of, 15; extent and cost of, 15-16; causes of, 16-17; economy of centralized employment bureau in reducing, 25-26; definition and method of computing, agreed on by National Employment Managers’ Confer- ence, 68; estimates of cost of, 69- 70; analysis and reduction of, 70-71; transfers and promotions for reducing, 73-74; close re- lation between accidents and, 141-142; reducing, by adequate housing conditions, 261. Labor unions. See Trade unions. Labor unrest caused by bad housing conditions, 262-263. Lackawanna Social Center, Boys’ Club of, 290. Lakeside Press, Chicago, apprentice- ship school of, 87. Land, cost of, in housing develop- ments, 277-278. Larcom, Lucy, 11. Leiserson, W. M., quoted, 333-334. Lever Brothers, educational clubs of, 253. Leverhulme, Lord, six-hour work day favored by, 127; quoted on rest rooms, 234. Libraries in industrial plants, 104. Liége Mutual Insurance Fund, 11. Life insurance among working class, 303-307. See Insurance. INDEX Lighting of factories, 152-155. Lincoln Motor Company, vestibule school of, 89. Loan plans for employes, 317-325. Loan sharks, credit union as 2 means of rescuing employes from, 321- 324. Lockers for employes, 151. Lorain, Ohio, poor conditions at, 290. Lost time as a test of fatigue, 115- 116. Lowe Brothers Company, Standard Club of, 247, 253. Lowell factories, early activities at, 11-12. Lowell Offering, factory operatives’ magazine, 11. Ludlow Manufacturing Company, community health work of, 286— 287; club house built by, 289. Lunches, length of period for, 240. Lunch rooms for employes, 227; different types of, 227-228; equip- ment of, 229; cost of food in, 229-231; menus and diet in, 232— 233; system of payment for meals at, 233. High McElwain Company, training-classes for minor executives of, 96. Machine production, fatigue poisons caused by, 113-114. Macy and Company, rest room of, 235; summer home for employes of, 249-250; educational club of, 253; athletic club of, 253-254. Magazines, for manufacturers, 13- 14; for employes, 104. Maison Leclaire, labor administra- tion by, 10; profit-sharing at the, 224, Management-sharing, and, 224-225. Manchuria Railway Company, wel- fare service of, 18-19. Manufacturers’ associations, 14. Massachusetts, state insurance scheme in, 311-312; state regu- lation of credit unions in, 322. Medical care of workers, develop- ment of, 163-199. Medical clinic, of women garment profit-sharing 359 workers in New York City, 196- 197; cost of, 197. Medical department of plant, 173-177, 330-332. Medical equipment of plant, 173-177. Medical examinations of employes, 168-173. Medical records, 191-192. Medical staffs, 187-190. Medieval industry, welfare work in, 6-8. Mentality, placement of low, 58. Metropolitan Life Insurance Com- pany, bonuses for good time- keeping at, 67; use made by, of part-time system, 82; instruction industrial in stenography given by, 94; correspondence course for em- ployes of, 94-95; sewing and millinery classes of, 102; library of, 104; plant organ of, 107; vacations for employes of, 132; ventilating methods at, 158; physical examinations of employes of, 167; medical treatment of employes of, 173; dental work among employes of, 177-178; optical clinic at, 180-181; tuber- culosis sanatorium of, 182; size of medical staff of, 189; experience of, showing futility of fines, 210; pay-envelope system of, 221; free luncheons at, 231; band of, 251; glee club of, 251-252; athletic association of, 253; gym- nasium classes at, 256; codpera- tive store of, 283; sickness sur- veys made by, 296; Metropolitan Staff Savings fund of, 319. Midvale Steel Company, statistics at, 66. Miller Lock Company, handbook for employes used by, 64n.; lunch-ticket system at, 233; com- munity singing at, 241-242. Miller Tire and Rubber Company, housing developed at Akron by, 268. Minnequa Hospital of Colorado Fuel and Iron Company, 182. Mock, Dr., recommendations of, concerning first-aid kit, 175; cited, 189. lateness 360 Montgomery Ward Corporation, group insurance of employes of, 305. Morbidity, weekly reports of, 191. Muensterberg, Hugo, tests devised by, 56. Munitions workers, effects of long working day on, 120-121, 123. Murray Hill Evening High School, New York City, 83. Musical organizations for employes, 250-252. Mutual aid, shifting basis of, 293; societies for, 293-295. See Benefit associations, National Association of Corporation Schools, 14. National Cash Register Company, part-time school of, 82-83; sales- manship school of, 91; promotion plan used by, 97; cultural educa- tion at, 101; library of, 104; suggestion system used by, 213; Women’s Century Club of, 242; bowling teams of, 255; Boys’ Garden Company at, 286. National Catholic War Council, recommendations by, 265. National City Bank, New York City, coérdinated system of edu- cation and promotion of, 97—98. National Safety Council, 14, 136; safety lectures issued by, 138. National Society for Promotion of Industrial Education, 14. New England Telephone and Tele- graph Company, rest rooms of, 236. New Jersey Zinc Company, health work of, 287; provision for recrea- tion by, 288. Newspapers for employes, 104. Newton, Mass., Trade School, 83. New Toy Company, employment of blind workers by, 92. New York City, private employ- ment agencies in, 36; part-time pupils in high schools of, 81; enor- mous fire losses in, 159; codpera- tive medical care of women gar- ment workers in, 195-197. New York Edison Company, train- INDEX ing classes for employes of, 90, 94; Savings and Loan Association of, 319. New Zealand, old-age pensions in, 316. Night schools, technical, 83-85. Night work, generally held in dis- favor, 122; objections to and ill effects of, 122-124. Noon hour diversions at industrial establishments, 240-243. Nordyke and Marmon Company, vestibule school of, 89. Northwestern Knitting Mills, vo- cational training classes of, 90. Norton Company, cost of labor turnover at, 70; use and value of dispensary at, 165-166; health bulletins and pamphlets issued by, 199; industrial housing policy of, 271, 273. Nurse, the plant, 190. Occupational disease, prevention of, 142-146. Ohio, first American public employ- ment bureau in, 38. Old-age insurance, 309-317. Oliver Mining Company, vegetable cellars built by, 286; club house of, 290. Oneida Motor Truck Company, coéperation of Green Bay Board of Industrial Education and, 84. Optical clinics in industrial estab- lishments, 179-181. Orchestras, employes’, 252. Organ. See Plant organ. Outings for employes, 256—257. Output, weight of, as a test of fatigue, 114-115; increase of, with shorter working day, 117-— 120; effects of night work on, 123; lowered by Sunday work, 126; seasonal variation in, 156; effect of temperature on, 156-157. Overlook Colony, industrial village, 274. Overtime, expense of, 125; reasons for restricting, 125. Owen, Robert, father of labor ad- ministration, 8-9; results of ex- periments of, in welfare work, 10; INDEX on economy of shorter working day, 116-117. Oxford, Mass., campaign against tuberculosis at, 184-185. Packard Motor Car Company, ap- prenticeship school of, 86-87; records of learners’ progress kept by, 88-89; school of, for training executives, 95-96. Packard Piano Company, scientific Management accepted by shop committee of, 223-224; manage- ment-sharing at, 225. Parke Davis & Co., Women’s As- sociation of, 242. Part-time courses in schools, 36, 78; vocational training in, 81; benefits of, 81-82. Paternalism in housing, avoidance of, 269-270. Pelzer Manufacturing Company, schools for employes of, 79. Pennsylvania, industrial accidents in, 136. Pennsylvania Department of Labor and Industry, questionnaire by, 45, Pennsylvania R. R., teaching of English to employes by, 100; portable bunk houses used by, 279. Pensions, or old-age insurance, 309- 317. Personality of applicant, importance placed upon, 53-54. Personal meetings, 104-105. Physical examinations of workers, 59-62 ; an accident preventive, 140; benefit of periodic, 166-167; rec- ords of, 191. Physician, office of, in industrial plant, 189, 330-332. Picnics for employes, 256-257. Piecework wages and time wages, 203-204. Plant chart, the, 40; for use in pro- motions, 98. Plant medical equipment, 173-177, 330-332. Plant organ, the, 105; a typical issue of, 105-107; special points concerning, 107-108; form and cost of, 109; frequency of publica- 361 tion and distribution, 110; quali- fications of editor of, 110. Playgrounds for children of em- ployes, 289-290. Plumb Company, attendance bonus paid by, 210. Point system or bonus-for-quality-of- work system, 211-212. Port Huron Engine and Thresher Company, reduction of accidents by, 137; plan of, for Shop Safety Committee, 139. Port Sunlight Men’s Club, 253. Postal Telegraph Company, success of credit union in, 323. Premium systems of wages, 204-206. Price, Dr. George M., 195, 197. Prizes for gardens, 285, 286. Productivity, effect of labor ad- ministration on, 4; effect of light- ing on, 152-153; comparative effects of bonus systems on, 211- 212; increasing, by adequate housing conditions, 261. Profit sharing, growth of, 19; history of, 216; defects of, 216-217; gain-sharing an attempt to remedy defects of, 217; a possible ap- plication of, 217-218; combined savings scheme and, 218-219; labor’s attitude toward, 224; to be accompanied by management- sharing, 224-225. “ Profit-Sharing,’”’ book on, by busi- ness authorities, 217. Promotion, systems of, 96-97. Promotions, reduction of labor turn- over by, 73-74; hope for, as a stimulating efficiency factor, 212— 213. Prudential Life Insurance Company, noonday concerts at, 242. Psychological tests for workers, 55— 56; function of, 58. Pullman Company, paternalistic housing venture of, 269-270. Quality-of-work bonus system, 211- 212. Quality progress records, 211. Railroad apprenticeship schools, 87. Railroad club houses, 246. 362 Railroad Liability Act, effect of, 17. Railroad rest rooms, 236-237. Railroads, medical care given em- ployes by, 164. Ranney, George, quoted, 226. Rayewsky, Dr. Charles, 195. Recommendations for applicants for work, 30-32. Recording and Computing Company of Dayton, vestibule school of, 88. Records, of attendance, 65-66; for employment office, 75-76; lost- time, as a measure of fatigue, 115— 116; medical, 191-192; absentee- ism, 192. Recreation, rest and, 226 ff., 288- 291; rooms for, 234-240; during noon hour, 240-248; during non- working hours, 244; club rooms and club houses for, 244-247; auditoriums, 247; gymnasiums, 247-248; swimming pools, 248; grounds for athletic fields, 248— 249; vacation bureaus, 250; management of activities, 257— 259. References of applicants, 62-63. Reid, Laurie Jean, health work of, in Georgia, 287. Remuneration of employes, method of, 200-225. Remy Electric Company, health educational campaign of, 199. Republican Metal Ware Company, job specification blank used-,by, 45, Republic Motor Truck Company, plant organ of, 108. Rest and recreation rooms, 234- 240; cost and supervision of, 238-240. Restaurants, factory, 227-234. Rest periods in working day, 126 ff.; @ preventive of fatigue, 129; grow- ing popularity of, 129-130; regu- larizing and enforcing, 130-131. Rike-Kumler Company, use physical examinations by, 60. Riverside Portland Cement Com- pany, results to, of employment of physically sound workers, 140; results to, of safety measures taken by, 309, of INDEX Roach, John, article by, cited, 158. Robinson, Harriet, 11. Robinson, L. G., co-author of Credit Union Primer, 323. Rochester, N. Y., athletic field of button factory at, 249; bowling among employes of, 255. Rochester, University of, courses in employment management at, 13. Rowan premium wage system, 205. Russia, company stores in, 284. Safety committees, employes’, 138- 139; meetings of, 139-140. Safety devices, 137. Safety education for employes, 100- 101. Safety first movement, 135-136; arousing workers’ interest in, 137— 140; self-insurance as a means of forcing interest in, 308-309. Safety talks during noon hour, 243. Salaries of workers, 208. See Wages. Salesmanship Research, Bureau of, 57. Salesmen, tests for, 57; schools for, 90-91; system of special training for selected, 94. Sanatoria care for employes, 181- 183. Sanitation, as a factor in working conditions, 146-152. Savings scheme and profit-sharing, a combined, 218-219. Savings plans for employes, 317-325. Sawyer Park, development of group house at, 274; stucco houses at, 277. Saxon Mills, provision for recreation at, 289. Scale for rating applicants, 54-55. Schneider, H., cited concerning per- sonality of applicants, 54; value of methods of, in vocational guid- ance, 59; aim of work of, 77; cited, 80, 81. Schools, securing employes from, 35-36; industrial and vocational, 77-110. Scientific management, development of, 14-15; value of, in relation to remuneration of employes, 206- 208; objection of workers and INDEX labor leaders to, 223; accepted by shop committee, 223-224. Scott, W. Dill, cited, 54; concrete scale for rating applicants devised by, 54-55; scientific studies of salesmanship by, 57. Scouting for employes, 34-35. Sears, Roebuck and Company, use of physical examinations by, 60, 172; vacations for employes of, 131; combined profit-sharing and savings scheme of, 218-219, 320; rest room of, 239; athletic fields of, (248; tennis courts furnished by, 255. Seashore, Professor, tests devised by, 56. Seneca Falls Manufacturing Com- pany, vestibule school of, 89. Service bonus for stabilizing dustrial force, 211. Service for employes, 2. Service pensions, 313-314. Sex, as a predisposing factor in in- dustrial diseases, 144-145. Shadwell, Arthur, study of industrial methods by, 14. Sherwin-Williams Paint Company, cleanliness enforced among em- ployes of, 144; men’s club room at, 236. Shop Chautauquas, 243. Shop committees, 223. Shredded Wheat Biscuit Company, entertainments for employes of, 254. Sicher and Company, English classes at, 100. Sick benefits, of trade unions, 296; of fraternal societies, 297. Sickness, measuring fatigue by, 115- 116; relation between long hours and, 121; relation between night work and, 124; increase of, due to Sunday work, 126. Sickness insurance, 294, 296-303; distribution of risk in, 301-302; province of, in United States, 302- 303. Smith, Edward, cited, 85. Social clubs of employes, 254. Social insurance laws in Europe, 294-295. in- 363 Sopris, Colo., ment at, 291. Solvay Process Company, employ- ment bureau of, 26; Americaniza- tion plan of, 99-100; results of shortened working hours at, 119; vacations for employes of, 131. Spanish River Pulp and Paper Mills, experience of, with quality progress record, 211. Special training classes for employes, 93-94. Spoiled work, as a measure of fatigue, 115. Springstead, Mr., on value of the credit union, 323. Squier, L. A., quoted, 310; study of employers’ service pensions by, 313, 316. Standard physical examinations of New York Municipal Civil Service Commission, 170. Standards, for evaluating labor ad- ministration, 3-6; for housing de- velopments, 278-280. Stenographers, special classes for, 94. educational experi- Stereopticons, use of, for instruction, 100. Stetson Company, use of physical examinations by, 60; service bonus paid by, 211. Stewart, Ira, early advocate of eight- hour day, 111. Stock-selling plans of corporations, 320-321; difficulty of, 323-324. Store orders, payment of wages in, 220. Strawbridge and Clothier Company, employes secured from schools by, 35; Noon Day Club for girls at, 242; athletic field of, 248-249; musical organizations at, 251; Athletic Association of, 253. Street railway club houses, 246. Street railway rest rooms, 237. Strikes caused by disputes wages, 222-223. Stucco construction for houses, 276— 277. Suggestion systems as a form of bonus, 213-215. Summer camps for employes, 249. over 364 Sunday work, arguments against, 125-126. Swimming pools for employes, 248. Sydenstricker, E., quoted, 194; studies of health insurance by, 296, 297. System 100%, magazine, 13. Talks on health for employes, 197- 198. Tardiness, labor loss from, methods of correcting, 65-66. Taylor, Frederick W., pioneer in efficiency movement, 14. Taylor wage system, 206. Technical night schools, 83-85. Teeth, care of, of employes, 177— 179. Telephone company rest rooms, 235- 236. Telephone employes, training classes for, 90. Telephone girls, summer homes pro- vided for, 249-250. Tennessee Coal, Iron and R. R. Co., health work of, 288. 65; Tests, for army officers, 54-55; psychological, for workers, 55— 56; salesmen’s, 57; function of psychological, 58; of fatigue, 114- 116. Thomas Manufacturing Company, social club of, 254. Thomson-Houston Company, em- ployment of blind workers by, 92. Three positions plan of promotion, 96-97. Towne, H. R., gain-sharing plan of, 217. Town planning in development of industrial housing, 273-274. Trade risk, a basic principle for in- dustrial accident insurance, 307— 308. Trade unions, vocational courses given by, 81; educational activities of, 102-103; vacations enforced by, 132; management of recrea- tional activities by, 258-259; insurance of their members by, against sickness, 296-297; dis- tribution of risk in insurance by, INDEX 301; criticism of life insurance efforts of, 305. Transfers of employes, 73. Transportation facilities, and, 263-264, 266-267. Trautschold, R., cited, 189, 192. Tuberculosis, in different occupa- tions, 183-184; methods of pre- vention, 184; campaign against, at Oxford, Mass., 184-185; failure of campaigns against, caused by employers, 185; free bed funds curative but not preventive, 185-— 186; reémployment and after care of patients, 186. Tuberculosis sanatoria, 182-183. Turnover. See Labor turnover. housing Unfit, placement of, by physical examinations, 60-62. Uniforms for employes, 151-152. Unit courses in technical night schools, 83-84. United Cigar Stores, promotion plan used by, 97. United Shoe Machinery Company, club house of, 246, 247; Athletic Association of, 253; Sam Sam day of, 256. United States, early labor adminis- tration in, 11-12; societies in, for mutual aid, 293-294. United States Federal Employment Service, 38-39. United States Playing Card Com- pany, health work of, 287. United States Steel Corporation, evening classes maintained by, 85; encouragement of gardening by, 286; health work of, 287; stock-purchase plan of, 320-321. Urban housing conditions for em- ployes, 263-266. Vacation bureaus for assistance of employes, 250. Vacations for employes, 131-132. Valmora Industrial Sanatorium, New Mexico, 182-183. Veiller, Lawrence, quoted, 275. Ventilation of workrooms, 156-159. Vestibule schools, 88-89; conducted by war industries, 89. INDEX Vickers Limited factories, first-aid kit used in, 173-174. Viscose Industrial Village, 268, 273; house rents at, 280. Vocational education, 77 ff. Vocational schools, continuation schools as, 103. Vocational tests, 55-58. Vogeler, Dr., on reémployment of tuberculous, 186. Voluntary annuity system of old- age insurance, 311-312. Wages, importance of, 200; defini- tion of, 200-201; scope of problem of, 201; fixing of basic, 201-203; time and piecework, 203-204; premium or bonus methods, 204— 208; of salaried and office workers, 208; work stimuli other than regular, 209-216; profit-sharing, 216-219; time and medium of paying, 219-222. Wagner Electric Manufacturing Company, basket-ball teams of, 255. Walpole, Mass., joint medical de- partment at, 187. Waltham Watch Company, board- ing house maintained by, 280. Wanamaker’s, summer camp for employes of, 249; employes’ band of, 251; singing taught in Cadet Battalion of, 252; management of recreational activities of, 257. Wanamaker Commercial Institute, cultural education by, 101-102. Wanamaker Women’s League, mestic science classes of, 101. Warbasse, J. P., quoted on coépera- tive purchasing and distribution, 284-285. War industries, system of vestibule schools adopted by, 89. Warner, A. G., on old-age de- pendency, 310. Warner Brothers, club house erected by, 244. Wastes in advertising for applicants, 32-34. Water, drinking, for workers, 149- 150. Wayne Knitting Mills, profit-shar- do- 365 ing and management-sharing at, 225. Welfare work, 2; historical origin of, 6-12. See under Labor adminis- tration. Western Electric Company, system of promotion at, 74; arrangement of employment department of, 75; employment of blind workers by, 92; system of special training employed by, 93-94. Western Electric News, a typical plant organ, 105-107. Westinghouse Electric Company, blind employes of, 92; statistics on accidents from, 141; promotion system at, and results, 212; wage- payment system at, 222. Wharton School of Finance, Uni- versity of Pennsylvania, 13. Whipple, Guy M., quoted on psycho- logical tests, 58-59. Whitney, Miss, model emergency equipment described by, 175. Willys-Overland Company, bonus- for-quality-of-work system used by, 211-212. Winchester Repeating Arms Com- pany, refreshments served at, 231. Wisconsin, in, 312. Women, susceptibility of, dustrial diseases, 145. Worcester, Mass., failure of tuber- culosis campaign at, 185. Working hours, 111 ff.; fatigue in relation to, 112-114; economy of shorter, 116-122; question of length of working period, 126— 131; codperation of employes essential to success of shorter, 134; relation between housing and, 263. Workmen’s Circle, tuberculosis sana- torium of, 195. Workmen’s Compensation Laws, 308 effect of, on medical care of em- ployes, 164-165. Workshop committee movement, 223. state insurance scheme to in- X-ray rooms in medical departments of industrial establishments, 177. 366 INDEX Yonkers, N. Y., Sprain Ridge Sana-| Y. W. C. A., evening classes of, 102; torium at, 186. factory meetings during noon hour Y. M. C. A., night school program conducted by, 243; industrial club of, 85, 102; industrial program of, houses under control of, 258. 2483; industrial club houses under control of, 258. Youngstown Sheet and Tube Com-| Zeiss optical goods factory, results pany, housing development by, of shorter working day at, 117— 268. 118, Printed in the United States of America. CORNELL UNIVERSITY LIBRARY sie wt"? | Pus