JK 775 il llii i4:TH Congress, 1st 8essio7i. HOUSE OF KEPRESENTATIVES M Report No. 742. MINIMUM WAGE BILL. it iiSSi pip iiii iiii May 23, 1916.— Committed to tlie Committee of the Whole House on the state of the Union and ordered to be printed. Mr. Nolan, from the Committee on Labor, submitted the foUowmg REPORT. [To accompany H. R. 11876.] The Committee on Labor, to which was referred the bill (H. R. 11876) introduced by Mr. Nolan to fix the compensation of certam employees of the United States, having considered the same, report thereon with the recommendation that it pass with the loUowmg amendments: , ,,^ , • ,• .i • x t. Page 1 line 3, strike out the words ''June thirtieth, nineteen hun- dred and sLxteen," and insert in heu thereof the words "the beginning of the first fiscal year following the passage of this act." Page 1, line 4, strike out the word ''pay" and insert m lieu thereol the word "compensation." . .^ ,, • . u x. ^x. Page 1, line 4, after the words "United States" insert or by the Government of the District of Columbia." ,, Page 1, line 5, after the semicolon following the words per day, insert "or if employed by the hour, not less than thirty-seven and one-half cents per hour " ; . Page 1, line 11, after the word "compensation" insert before the period a comma and the words "nor to persons holding appointments as postmasters." -r, j f +i. Page 1, the following proviso to be inserted to go at the end ot tne first section of the biU: ''Provided further, That the provisions ol this act shall apply only to those persons who have been continuously m the employ of the Government of the United States, or m the employ 2 MINIMUM WAGE BILL. \ *^ ^ of the Government of the District of Columbia, for a period of not less than two years, and who shall have attained the age of twenty years." Page 1, lines 12, 13, and 14, to be stricken out. Page 2, lines 1 to 15, inclusive, to be stricken out. Page 2, line 16, that section 3 be renumbered section 2. The bill as originally introduced contained three sections and reads as follows : A BILL To fix the compensation of certain employees of the United States. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That after June thirtieth, nineteen hundred and sixteen, the minimum pay of any person employed by the United States shall be not less than |3 per day; or if employed by the month, not less than $90 per month; or if employed by the year, not less than |1,080 per annum: Provided, That the provisions of this act shall not apply to persons enlisted in the military branches of the Governrnent nor to persons receiving quarters and subsistence in addition to their compensation. Sec. 2. That all employees of the United States as defined in section one of this bill who are now receiving compensation at the rate of more than $1,080 per annum shall receive an increase of five per centum of the amount they are now receiving each year for the next four years, making, in all, a net increase of twenty per centum: Provided, That any employee who may receive an increase of compensation under section one of this act which shall amount to more than twenty per centum shall not be included under the provisions of this section; but any employee who shall receive an increase under section one of this act which does not amount to twenty per centum of the compensation he now receives, that brings his compensation up to the mini- mum amount specified in section one, shall receive a yearly increase in compensation of five per centum of the amount he not^ receives until the total increase shall aggre- gate not less than twenty per centum of the compensation he now receives. Sec. 3. That upon the passage of this act the heads of departments in which are employed persons as defined in section one of this bill shall issue new appointments at the increased rate of compensation herein provided. The amended bill contains but two sections and reads as follows: A BILL To fix the compensation of certain employees of the United States. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That after the beginning of the iirst fiscal year following the passage of this act, the minimum compensation of any person employed by the United States or by the govermnent of the District of Columbia shall be not less than |3 per day; or if employed by the hour, not less than 37^ cents per hour; or if employed by the month, not less than $90 per month; or if employed by the year, not less than $1,080 per annum: Provided, That the provisions of this act shall not apply to persons enUsted in the military branches of the Government nor to persons receiving quarters and subsistence in addition to their compensation, nor to persons holding appoint- ments as postmasters: Provided further. That the provisions of this act shall apply only to those persons who have been continuously in the employ of the Government of the United States, or in the employ of the government of the District of Columbia, for a period of not less than two years, and who shall have attained the age of 20 years. Sec. 2. That upon the passage of this act the heads of departments in wliich are employed persons as defined in section one of this bill shall issue new appointments at the increased rate of compensation herein provided . The bill was referred to a subcommittee of the Committee on Labor, consisting of Messrs. Maher, Nolan, Van Dyke, and Denison, and pub- lic hearings were held thereon from March 20, 1916, to April 5, 1916. There appeared personally before the subcommittee representatives of the American Federation of Labor, the Maryland State Federation of Labor, Federation of Civil Service Employees of the port of San Francisco, the Federal Employees' Union of the District of Columbia, MAY 27 1916 :x MIlSriMUM WAGE BILL. 3 the National Federation of Post Office Clerks, the United National As- sociation of Post Office Clerks, the National Association of Letter Car- riers, the National League of Government Employees, the National Association of United States Civil Service Employees at Navy Yards, the Consumers' League of the District of Columbia, all of which organi- zations most earnestly indorsed the bill. There also appeared com- mittees and individuals representing the laborers, watcnmen, messen- gers, and various other low-salaried employees in the various branches of the Government service, including the White House, the Govern- ment Printing Office, the Bureau of Engraving and Printing, the Smithsonian Institution, the National Museum, Arlington National Cemetery, Public Buildings and Grounds, as well as the several navy yards of the United States. The testimony of these witnesses is printed in full in the report of the hearings of the subcommittee and presents the necessity for immediate remedial legislation in a most striking manner. The following statement, showing the estimated cost of living for a family of five, was submitted by Mr. Arthur E. Holder, representing the American Federation of Labor. The figures are worthy of close study, being based on the conditions existing to-day. Mr. Holder's figures show that it takes $767.95 a year to provide the bare necessi- ties of life for a family of five, making no allowance whatever for doc- tors, medicine, insurance, lodge dues, newspapers, church contribu- tions, or amusements, and the cost for food is based on 5 cents a meal. Mr. Holder's figures of 5 cents per meal per person is not given as the actual cost, but merely suggested as the lowest possible estimate. Estimated Minimum Cost of Bare Existence for Husband, Wife, and Three Children for a Year of 365 Days. [By Arthur E. Holder.] Food: 3 meals per day for 5 persons at 5 cents per meal each, equals 75 cents per day ; for 365 days $273. 75 Rent: House or rooms, at $20 per month 240. 00 Water: 50 cents per month 6. 00 Clothes: 2 suits for husband (no overcoat), at $15 each 30. 00 3 suits of underclothes, at $1 per suit 3. 00 1 suit for wife, with cloak 25. 00 3 suits of underclothes, at $1 per suit 3. 00 Clothes for 3 children, at $10 each 30. 00 Underclothes for children, stockings, etc 9. 00 2 pairs shoes for husband, 2 pairs for wife, at $2.50 per pair 10. 00 2 pairs each for 3 children, at $2 per pair 12. 00 Repairs for shoes for year (no rubbers) 3. 00 Heat and light: Gas for light and cooking, at $2 per month 24. 00 Coal, 7 tons, at $7 per ton 49. 00 Household needs: Soap for laundry and bathing, 10 cents per week 5. 20 Matches, firewood, replacing broken crockery ware, cooking utensils, etc., per year 10. 00 4 MINIMUM WAGE BILL. Household needs — Continued. New bedding, tablecloths, matting, rugs, other floor covering, and re- placing broken or worn-out furniture, per year $20. 00 Towels, window shades, other minor but essential articles for household and family wear, such as hats, caps, wraps, umbrellas, etc., classed as miscellaneous 15. 00 Total cost of bare existence for family during year 767. 95 It will be noticed that no entry has been made for the following expenses, which are usually necessary: « Street cars None. Tobacco None. Whisky None. Other stimulants None. Candy None. School books and other school needs None. Church expense None. Newspapers, magazines, etc None. Theaters, movies, excursions, social or church parties None. Insurance, lodge dues, trade unions None. Postage and stationery for correspondence None. Cost of births None. Cost of deaths None. Cost of sickness, medicine None. Cost of accidents or lawsuits None. Families who are shackled by the iron laws of economic necessity on an income of $720 per year can indulge in no extravagance, not even the necessary luxuries above enumerated. Their lives are circumscribed within the limits of a bare existence, for which there is no hope, no promise, no future. Prof. Keen, of the University of Washington, a national authority, conducted extensive investigations, and some time ago estimated $840 for absolute necessities. The prices have advanced since that estimate was made and are still going higher. Scores of Government employees in different sections of the United States, as well as many of those employed here in Washington, sub- mitted itemized statements of living expenses. In many instances these people stated they were dependent upon charity to make both ends meet. And in the printed record of the hearings testimony can be found of dozens of cases where the low-paid Government employee is forced to seek employment after hours and during his vacation period in order that he may make provision for the bare existence of his family. In connection with the rise in prices of commodities generally con- sumed by the lower-paid employees in the District of Columbia and elsewhere, the subcommittee requested Mr. Ethelbert Stewart, chief statistician of the Bureau of Labor Statistics, Department of Labor, to submit for the information of the committee and of Congress statistics covering a period of years from 1890 to date. Mr. Stewart also submitted at the request of the subcommittee statistics showing the purchasing value of $1 during the 26 years from 1890 to 1915. These statistics were gathered in 45 cities, the United States being divided into five geographical divisions. These statistics show the rise in prices has been general and not confined to any particular section of the United States. Mr. Stewart's statement before the subcommittee and the statistics he submitted follow : MINIMUM WAGE BILL. 5 Statement of Mr. Ethelbert Stewart, Chief Statistician Bureau of Labor Statistics, United States Department of Labor. Mr. Stewart. I have here the prices of certain foodstuffs in the city oi Wash- ington from 1890 down to and including 1915. This material is secured by the Bureau of Labor Statistics monthly. In 1890 we had three grocery stores in Washington re- porting to us monthly; in 1915 we had seven. In 1890 the average price of round steak in the store reporting the lowest rate was 12.4 cents per pound; that was the average for the year. The highest store reported 13.3 cents per pound. In 1915 the lowest store was 22.3 cents a pound, as against 12.4 in 1890. The highest store in 1915 was 27.5, as against 13.3 in 1890. I have intentionally selected those things that would necessarily be used by the men who get $60 a month as against those who get $200. For instance, I have selected round steak instead of sirloin. That is the cheapest cut that we carry in our price list. Pork chops were 10 cents in 1890 and 22.1 cents in 1915. They were 19.5 in the cheapest store. In other words, the price practically doubled. Now, in the salary grades of which you speak there has been no increase, if we take our own bureau aa an example. The man who comes in at $660 per annum is practically barred by the civil-service regulations from ever getting any more. He can not take an examination for the subclerical positions, and the jobs for which the pay is $660 per annum are held to-day by the same men who went into them years ago. One man at $660 has been there as long as I have. I have been in the bureau since 1887, a period of 29 years. The other positions work this way: We take a man in at $1,000. While that is always the entrance salary for that particular job, yet that person can go up. In other words, while the salary for the job remains the same, the job is not always held by the same person. In these $660 per annum positions that can not be clone. So when we say the price of pork chops has increased 100 per cent since one of these men took one of these positions it means that he has had absolutely no means to meet that increase unless he has other members of the family whom he can put to work to help augment the income. To continue price quotations, wheat flour, one-eighth of a barrel, or approximately 24 pounds, cost 8-1 cents in 1890, while in 1900 it cost $1.14. Eggs have increased from 22 cents to 36.5 cents. That is the average price for the year in Washington, of course. Butter has increased from 29.5 cents to 39.3. wliile sugar has increased from 5.5 to 6.3. Mr. Nolan. Those are the averages for the year? Mr. Stewart. Yes, sir; those are the averages for the year. That is the average of the monthly statements from each store. I would like to submit for your record, in case you want to examine the details more fully, this detailed table of cost, and also this shorter table, which gives the highest and lowest prices, by five-year periods, from 1890 to 1915. Average retail prices of certain specified articles of food in Washington, B.C., in each year from 1890 to 1915, inclusive, by firms. Bound Pork Ham, Lard, Flour, wheat. Pota- toes, Irish, Eggs, per dozen. Butter, Sugar, granu- lated, Year steak, chops, smoked, pure, per one- cream- per per peck. per pound. pound. pound. pound. pound. barrel bag. pound. 1890 SO. 124 .125 $0. 100 ISO. 138 $0. 100 .100 $1. 000 .951 $0. 271 .254 SO. 240 .220 $0. 308 .295 10. 055 1 i.l38 .067 .133 1.134 .110 .843 .296 .232 .338 .074 1891 .138 .125 .100 1.140 1.136 .100 .100 1.009 .973 .308 .300 .246 .249 .329 .304 .051 .050 .134 1.150 .100 .968 .308 .267 .329 .057 1892 .120 .125 .100 1.140 1. 136 .102 .103 .933 .958 .279 .241 .242 .238 .350 .308 .051 .049 .117 1.146 .107 .899 .258 .252 .350 .053 1893 .120 .125 .100 1.153 1.156 .140 .118 1.000 .916 .296 .313 .236 .225 .346 .307 .054 .055 .116 I 1.138 .143 .909 .300 .234 .342 .057 1894 .120 .100 1.145 .115 .808 .258 .218 .338 .051 6 MINIMUM WAGE BILL. Average retail prices of certain specified articles of food in Washington, D. C, in each year from 1890 to 1915, inclusive, by firms — ^Continued. Year. 1894 1895 1896 1897 1898 1899 1900 1901 1902 1903 1904, 1905. 1906. 1907. 1908. 1909. 1910. 1911. 1912. Round steak, per pound. ;0. 125 .110 .120 .125 .116 .119 .125 .120 .112 .125 .120 .125 .125 .126 .143 .125 .147 .154 .125 .150 .150 .130 .150 .158 .150 .168 .153 .150 .150 .152 .150 .140 .153 .144 .152 .154 .150 .153 .155 .155 .153 .170 .173 .172 .180 .180 .165 .193 .180 .193 .166 .180 .160 .150 .190 .180 .188 .163 .183 .158 .164 .230 .208 .178 .218 .180 .195 .228 Pork chops, per pound. .125 .125 .125 .125 .150 .150 .150 .144 .140 .143 .141 .141 .146 .157 .162 .164 .160 .163 .160 .160 .150 .168 .160 .160 .162 .187 .200 .180 .185 .228 .213 .187 .182 .197 .220 .169 .190 .168 .192 .165 .173 .186 .190 .199 .205 .178 .197 .210 .203 Ham, smoked per pound. 'SO. 135 1.133 1.135 1.130 1.140 1.133 1.130 1.142 1.136 1.134 1.150 1.133 1.129 1.139 1.128 1.135 1.133 1.146 1.142 1.145 1.152 1.153 1.143 1.151 1.164 1.143 1.170 1.180 1.150 2.200 1.160 2.200 2.228 1.158 2.200 2.250 1.172 2.225 2.232 2.250 2.275 2.250 2.300 2.258 2.300 2.250 1.170 1.197 2.250 1.180 2.300 2.250 1.156 1.178 2.240 1.175 2. 300 2.250 1.165 1.173 2.249 1.200 2.300 Lard, pure, per pound. .100 .125 .100 .100 .120 .100 .100 .103 .100 .090 .094 .100 .085 .100 .100 .088 .100 .105 .099 .104 .122 .122 .123 .138 .137 .142 .138 .130 .145 .130 .124 .130 .122 .120 .126 .129 .126 .128 .130 .133 .137 .138 .135 .135 .160 ,148 .147 .180 .173 .187 ,150 .178 ,168 ,133 ,125 ,130 ,132 ,137 ,131 .143 ,138 ,139 ,134 ,135 ,148 ,144 Flour, wheat, per one- eighth barrel .821 .933 .784 .755 .742 .870 .762 .801 .909 .867 .870 .941 .904 .916 .755 .808 .821 .760 .801 .826 .750 .767 .801 .750 .750 .796 .750 .767 .801 .950 .956 .900 .903 .850 .933 .900 .900 1.000 .983 .950 1.000 1.000 .900 1.000 1.000 .929 .908 .933 .900 1.000 .942 .950 .913 .929 1.000 1.000 Pota^ toes, Irish, per peck. .300 .279 .263 .238 .283 .254 .219 .250 .258 .250 .246 .246 .275 .313 .250 .267 .279 .258 .279 .267 .267 .300 .308 .279 .283 .321 .246 .300 .325 .271 .333 .300 .250 .281 .269 .278 .300 .279 .250 .258 .265 .250 .267 .258 .275 .267 .292 .217 .232 .242 .242 .250 .292 .250 .308 .350 .288 .383 .307 .342 .346 .329 .313 .308 .342 .342 .342 Eggs, per dozen. $0. 225 .233 .208 .208 .228 .205 .208 .195 .203 .207 .179 .205 .218 .199 .214 .236 .202 .228 .219 .215 .243 .235 .244 .274 .266 .259 .274 .252 .255 .288 .271 .276 .274 .263 .276 .286 .280 .287 .288 .257 .277 .258 .270 .318 .287 .300 .328 .310 .292 .300 .268 .261 .275 .291 .312 .307 .303 .319 .334 Butter, cream- ery, per pound. $0. 302 .338 .313 .316 .317 .304 .298 .313 .294 .283 .303 .282 .273 .300 .313 .282 .321 .321 .288 .321 .313 .297 .321 .329 .318 .333 .317 .324 .325 .313 .321 .338 .323 .323 .333 .330 .336 .332 .363 .333 .350 .347 .315 .355 .373 .330 .370 .393 .348 .382 .375 .375 .385 .313 .354 .346 .347 .350 .344 .337 .355 .396 .377 .380 .387 .381 .390 Sugar, granu- lated, per pound. 1.052 .050 .053 .048 .050 .053 .051 .055 .053 .050 .053 .057 .056 .058 .056 .056 .060 .057 .^58 .063 .058 .058 .060 .050 .050 .055 .053 .054 .055 .053 .052 .055 .061 .059 .063 .054 .050 .053 .054 .057 .055 .056 .058 .058 .053 .055 .055 .055 .057 .057 .057 .059 .055 .061 .060 .060 .059 .061 .061 .060 .058 .058 .063 .060 .060 1 Whole. 2 Sliced. MINIMUM WAGE. BILL. Average retail prices of certain specified articles of food in Washington, D. C.,in each year from 1890 to 1915, inclusive, by firms — Continued. Round Pork Ham, Lard. Flour, wheat. Pota- toes, Irish, per peck. Eggs, per dozen. Butter, Sugar, Year. steak, per chops, per smoked, per pure, per per one- eighth cream- ery, per lated, pound. pound. pound. pound. barrel bag. pound. pound. 1913 SO. 258 10. 208 1 SO. 300 $0. 152 SO. 896 •SO. 246 $0. 309 $0,417 $0. 051 .231 .210 2.264 .144 .950 .233 .308 .405 .051 .213 .213 2.195 .148 .896 .259 .296 .391 .049 .244 .227 2.201 .142 .815 .261 .318 .408 .052 .212 .218 1.295 .148 1.000 .300 .293 .398 .050 .222 .224 2.214 .155 .975 .280 .343 .404 .052 .253 .228 1.313 .150 .900 .290 .297 .411 .051 .234 .268 .205 .216 1.297 1.300 .148 .141 ""."950' .288 .282 1914 .333 .395 .056 .254 .233 1.270 .139 .967 .275 .317 .383 .054 .236 .233 2.191 .145 .933 .280 .338 .378 .055 .258 .218 2.193 .140 .908 .282 .333 .383 .058 .242 .227 1.301 .142 .958 .291 .319 .375 .057 .237 .224 2.210 .149 1.033 .297 .354 .383 .056 .273 .241 1.323 .150 - .958 .320 .334 .385 .056 .230 .253 .218 .203 1.300 1.300 .146 .131 i.675 .296 .218 1915. .315 .393 .063 .247 .213 1.272 .128 1.125 .189 .308 .378 .060 .227 .212 2.183 .129 1.050 .225 .321 .383 .060 .247 .195 2.187 .128 1.088 .214 .317 .383 .063 .240 .211 1.300 .135 1.092 .205 .291 .374 .060 .223 .198 2.191 .124 1.144 .217 .364 .376 .062 .275 .221 1.350 .138 .263 1 Sliced. 2 Whole. Highest and lowest average retail prices of certain specified articles of food, Washington, D. C, in 5-year intervals, from 1890 to 1915. Year. Round steak, per pound. Pork chops, per pound. Hani, smo' ed, per pound. Lard, pure, per pound. Flour, wheat, per one- eighth barrel bag. Pota- toes, Irish, per peck. Eggs, per dozen. Butter, cream- ery, per pound. Sugar, granu- lated, per pound. 1890 $0. 124 .133 .116 .125 .125 .154 .144 .153 .150 .193 .223 .275 $0. 100 "".'i25' ""'.'125' "'.'i4i' .146 .182 .228 .195 .221 $0. 134 .138 .130 .140 .142 .146 .158 ".'i76' .197 .183 .191 $0. 100 .110 .100 .120 .099 .105 .120 .126 .150 .187 .124 .138 $0. 843 1.000 .742 .784 .760 .826 .950 .968 .900 LOOO 1.050 L144 $0,254 .296 .238 .283 .258 .279 .250 .281 .217 .292 .189 .263 $0,220 .240 .208 .228 .215 .228 .263 .276 .292 .328 .291 .364 $0. 295 .338 .313 .317 .288 .321 .323 .333 .313 .393 .374 .393 $0. 055 1895 .074 .048 1900 .053 .057 1905 .063 .059 1910 .063 .055 1915 .059 .060 .063 Mr. Nolan. That small table refers to commodities that are more likely to be used by the lower-paid employees in the District of Columbia? Mr. Stewart. Yes, sir. For instance, instead of taking sirloin steak, I have taken round steak; instead of taking a fancy roast Cut, we have taken the cheapest steak that we can buy; and we have taken pork chops, and so on. Vegetables, of course, are bought by everyone at practically the same price. I believe that, so far as the cost of living is concerned, these are all the official figures that I can furnish you at this time. I know that rents are increasing very rapidly in the District of Columbia. For a number of years they were quite high and then there was a slump, but certainly at the present time they have recovered from that slump and are very much on the up grade. Mr. Nolan. Are they higher to-day than ever before in the District of Columbia? Mr. Stewart. My impression is that they are, but there was a boom time here when they were very high. Most of my official connection with the bureau has been as a field man. My family was not in Washington, so that I am not the best authority on 8 MINIMUM WAGE BILL. that subject; but my impression is that the rents are now very much in advance of the boom time that they had here several years ago. Mr. London. I think the committee would be greatly aided by having references to the ori