Cornell University Library KF3450.P71N53 Arbitration proceedings and the findings 3 1924 002 197 063 KF 3450 P71 N53 CORNELL UNIVERSITY LIBRARY NEW YORK STATE SCHOOL OF INDUSTRIAL AND LABOR RELATIONS THE GIFT OF AFL-CIO TTrbitration Proceedings AND THE Findings and Awa; OF pUBRARY GEORGE W. KIRCHWEY, Arbiti In re Typographical Union No. 6 versus Employing Printers' Association Closed Shop (Printers' League) Branch 1=11=1 New York City 1920 Cornell University Library The original of this bool< is in the Cornell University Library. There are no known copyright restrictions in the United States on the use of the text. http://www.archive.org/details/cu31924002197063 ARGUMENT Before MR. GEORGE W. KIRCHWEY, Arbitrator New York, November 8, 1920 Met pursuant to agreement at offices of The United Charities Building, 105 Bast 22na Street. 3:00 p. m. Appearances — For the Printers' League and Employing Printers: Mr. A. C. Brower, President; Mr. John Morrison, Mr. Albert O. Jennings, Mr. P. Hurley, Mr. G. J. Ander- son,, Managing Director, Printers' League; Mr. F'. A. Silcox. For Typographical Union No. 6: Mr. Leon H. Rouse, President; Mr. John S. O'Con- nell, Secretary; Mr. Theodore P. Douglas, Organizer; Mr. William Robinson, Mr. Walter McCoy, Mr. Louis Fischer, Mr. Alexander Trachtenberg, Mr. S. Oppen- heimer. PROCEEDINGS The Arbitrator called the meeting to order at 3:00 p. m. The Arbitrator — What is the title of this case? Mr. Rouse — "Arbitration Proceeclings between the Em- ploying Printers' Association, Closed Shop (Printers' League) Branch, New York City, and Typographical Union No. 6." That will be the title of the proceedings. Mr. Brower — Correct. The Arbitrator — Do I understand that there is an Agreed Statement of Facts? Mr. House — That is the Agreed Statement of Facts (handing paper to Arbitrator). That is correct, is it not, Mr. Brower ? Mr. Brower — Yes. We received your copy, I believe, about two o'clock today. We compared it, and I under- stand it to' be correct. Mr. Rouse — Now, then, for verification, we will submit the contract in force between Typographical Union' No. 6 and the gentlemen who agreed to it (handing paper to Arbitrator). Shall we proceed, Mr. Kirchwey? The Arbitrator — I suppose, to use the analogy of legal proceedings, you are the plaintiffs in this case, and that therefore you should be heard first? Mr. Bouse — Very well. To get the matter properly be- fore you, it has been agreed that the award in this case would be retroactive as of October 1st. Mr. Brower — It is so stated. It is in the Agreed State- ment of F'acts to that effect. Mr. Rouse — Just to get it on the record, that is the point. It is also agreed that the award will be from October 1st. 1920, to September 30th, 1921. The Arbitrator— 1921, Mr. Rouse — 1921, for one year. The Arbitrator — Yes. .^ Mr. Brower — Yes. Mr. Bouse — We should have an understanding that in presenting our case, we will proceed with our side, then the Employers will present their side, and then we will rebut on the two arguments as presentedj»at a later date, convpnient to all partips. Is that correct? Mr. Brower — That is correct, I should say. The Arbitrator — That is satisfactory to me. Now, in the first instance, do you wish any limit or division of time to be allotted to the presentation of the case? Mr Rouse— I do not. I do not think we should have. Mr. Brower— I was going to remark in the same way that we should have the fullest latitude in the presenta- tion of both sides. Mr. Rouse— I thoroughly agree to that. Mr Brower— That it would be unnecessary for either of us to have shut out, by limitation of time, anything that we wish to present. .. . ^ * The Arbitrator— That is entirely satisfactory to me. Mr Brower— So that no one might not have an oppor- tunity I think the best interests of all would be pre- served by getting all the facts and everything in the most liberal interpretation. Mr Rouse— I thoroughly agree with the counsel for the employers that there should be fairness upon both sides in the statement of the case before the Arbitrator, that we should endeavor on both sides to present all the facts available, and opportunity be given to both sides to re- but, in order to present this case in the best manner they can. Mr. Brower — Yes. Mr. Rouse— That is agreeable to our side, I know. Mr. Brower — One thing more I would suggest — Mr. Rouse-t-Except there be this exception, that it would not be fair to the Arbitrator nor to the industry by making a statement that we should agree on some time for the conclusion of the argument. The Arbitrator — Perhaps I can 'guarantee that some time or other it will be concluded. (Laughter.) That may be my most important function. Mr. Rouse — The point that I make is that at the con- clusion of the case finally, before the Arbitrator, the ease will end. That is agreed to? Mr. Brower — Unquestipnably. When you are concluded, you are through, Mr. Rouse — We have had an experience The Arbitrator — I suppose what you have in mind Is that it might be reopened possible on the request of either side. I should say no, except it should be reopened by common consent. Mr. Rouse — Yes. We had a case in point where there was such conclifsion In an arbitration proceeding, and then after the Arbitrator had the case in hand, the Association that was negotiating with us at the time submitted a supplemental brief some four days after the arbitration had concluded, without our knowledge. Mr. Brower — Oh, well The Arbitrator — May I ask whether a formal agree- ment for arbitration has been entered into, and an agree- ment to abide by the terms of the arbitration? Mr. Rouse — ^I will say I think, when we called upon you, Mr. Kirchwey, at the time you agreed to serve pro- vided you could make arrangements, we gave you the Arbitration Agreement then in force with the Employing Printers' Association, and Typographical Union No. 6; and I stated at the time that that was the instrument of peace, — if you recall the words. That is all that is neces- sary. The Arbitrator — Yes, I recall that. There has been no further agreement entered into, and on both sides you re- gard this as the Instrument binding as to the procedtme, and the effect of the present arbitration proceedings? Mr. Bouse — That is the practice now in full force and effect. The Arbitrator — Yes. I think that we are ready now to hear from you, Mr. Rouse. Mr. Brower — I would like to make an observation, with your permission. Thinking it over the other day, I felt the best procedure at the moment would be for each side to present its case without any interruption from the other side. Is that the usual procedure, Mr. Rouse? Mr. Rouse — Well, not necessarily, but I think it is good practice. Mr. Brower — I should think that would be wise, so far as each side is concerned, to let Mr, Rouse present his case, and then I will not interrupt or start any argument, or anything of that kind, even if I disagree with his statement. The Arbitrator — Even if you disagree with his state- ment of fact. Mr. Brower — I will reserve a time to present my dis- agreement. * Mr. Rouse — I want to state further that I am perfect- ly agreeable to have Mr, Brower interrupt. It won't bother me if he cares to. I will accord the right at any time. Mr. Douglas — Mr, Chairman, I do not think that proce- dure will do very well in the rebuttal. Mr. Rouse — Not in the rebuttal. I mean in the pre- sentation of the case, and not in rebuttal, you would not do that. The Arbitrator — I think that in legal proceedings, it is customary to permit counsel who are speaking, to chal- lenge a statement of fact made by counsel, provided it does not result in a controversy or discussion, in which case the Court finds it necessary to ask for a postpone- ment of the discussion until the other side can be heard. It is probably better in the initial statement to leave every correction, even of a statement of fact, to be made in the statement, until the turn pf the other ^ide has come. ~' ' " Mr. Brower — That is my thought Tlie Arbitrator- little when the of the other s Property of 1 order that there shall uot be an unlimited number of re- buttals afterwards. We are ready now, I think, Mr. Bouse. Mr. Rouse — I would suggest, Mr. Kirchwey, that we should have this understanding, so far as the rebuttal Is concerned: Undoubtedly there will be statements made, and questions come up, covering points in the industry that the Arbitrator might want to familiarize himself with, and then the pro and con statements, I think, are the best procedure, so that we won't be held down too much by what might be termed the strict legal procedure, rather than too much latitude on rebuttal. Now, then, to present our case, both sides should pro- ceed without interruption; but in the rebuttal argument you will find that it will be very enlightening for both sides — and if I may be pardoned for saying it, also to the Arbitrator — for this mutual feeling of exchange, pro and con, to get at the facts. That is the point. The Arbitrator — You see no objection to that, that there shall be a certain amount of latitude in the matter of discussion of points that may be asserted by one side or the other. ' Mr. Brower — I do not know that I do. I agree there should be a certain amount, but it should not go into the breaking into erf the main argument. Mr. Bouse — Leave that to the Chairman for his best judgment. I will present, Mr. Kirchwey, a copy for you, of our brief, and I will read from this to the assemblage. (Reads brief as follows) : Mr. George W. Kirchwey, Arbitrator, Dear Sir: Before presenting the side of Typographical Union No. 6 in these scale negotiations, the Committee desires to tender its thanks and express its grateful appreciation to you for your courtesy in consenting to act as Judge in these proceedings. The Committee of the Union appreci- ates the value of the time the Arbitrator must of ne- cessity devote in reviewing this case and realizes the deli- cate position occupied by an Arbitrator in a matter of this nature. It is with a full knowledge of the honesty, integrity and capability of the Arbitrator, that we place our case in his hands, confident that whatever decision rendered will have been arrived at in a consideration of Justice and equity. Before entering into the merits of our case, we beg leave to ^present a very brief resumg of the history of our Union, in order to illustrate, in as few words as pos- sible, the nature of the organization represented in this controversy. Typographical Union No. 6 always has been, Is and al- ways will be a conservative, law-abiding . true Americao body, educational and benevolent. In the year 1912, the New York State Department of Labor published a History of Typographical Union No. 6. This publication was prepared under the direction of John Williams, Commissioner of Labor, State of New York, and edited by George A. Stevens, Senior Statistician of the same department. The opening chapter of this publication begins with the following paragraphs : RISE OF THE MODERN LABOR MOVEMENT "It iwas at the threshold of America's Golden Age that the New York Printers' Union (which eventually became Typographical Union No. 6, familiarly known as "Big Six" throughout the industrial world) had its inception. "From California had come the gladsome tidings that mines of fabulous wealth had been uncovered, and this discovery on the Pacific Slope of the most precious metal marked an important era in the life of the Nation. "Emigration to the farthest West commenced witb the earliest intplligence that the mountains of the remotest corner of thfi continent had yielded their inexhaustible treasures to the hand of thp delving explorer, and this exodus increased in proportion to the amount of gold that WHS taken from the earth. "Great improvement in business ensued. Large quan- tities of the yellow metal were mined, producing an im- mediate chaflge in the value of the currency and creating a revolution in the prices of commodities. "Labor, particularly in New York City, experienced the influence of these rapid alterations in conditions. Realiz- ing that their parnings were not 'fommensurate with the demands consequent upon the upward tendency of the cost of living, the workmen sought to broaden and better their economic standard through organization. "In the closing days of 1849, formation of Unions began among a few Metropolitan trades in a small way the printers being in the van of this uplift effort, but by the advent of the succeeding spring, quite a number of protective associations had sprung into existence and the modern labor movement was then firmly launched " ployed members, was established in 1872 and is still mai; tained. Now located at 475 Pearl Street. Since 1894, the Union has granted an allowance of 54. < per month to each of its members in the Union Printer Home at Colorado Springs. In conjunction with the New York Branch of ti Printers' League of America and the Hudson Guild, "B1 Six" established in 1913, and continues to maintain ) 30th Street and Sixth Avenue, a School for Printer Apprentices. The Union contributes $10,000 annual! toward the maintenance of the school, where 848 regl tered apprentices are receiving instruction in the a] preservative. Before entering the journeyman stage of his career, tl apprentice must serve at least five years' apprenticeshl in a composing room. During that period, the apprenti* must attend the school for printers' apprentices referrt to above at least twice a week, one afternoon or evenir on his employer's time and one afternoon or evening upc his own time. Only boys of at least a public scha education and of a high order of intelligence can qualif; This school is equipped with all the modern paraphernaH of the printing trade and under the supervision of hig class instructors. Any boy entering a printing office i an apprentice under the jurisdiction of Typographical UdIo No. 6. who after a stay of one year does not display a aptitude for the trade is discontinued as ap apprentice. At the end of four years the apprentice enters tl last year of his term, called "probation" period. Befoi entering that period, an apprentice is required to pass most thorough examination — at the school — of bis qualll cations. Failure to pass such examination subjects a apprentice to a set-back of whatever period the Cod mittee may recommend. At all times during working hours is the apprentlt subject to the strictest surveillance, both of his employe: as represented by the foreman, and the Union, as repn sented by the Chairman of the office. AH applicants for admission to the Union — those havlii served their apprenticeship outside the jurisdiction c Typographical Union No. 6 — must pass examination at tl school and prove their competency. It is the boast of Typographical Union No. 6 that noi but the most competent printers, of good moral cbaracte: are admitted into its ranks. BENEFICIAL FEATURES OF "BIG SIX'* ,Iu large degree, "Big Six" promotes the comfort ar happiness of its distressed members and succors the di pendents of those who have been removed by death, ii beneficent works having been carried on continuous! almost from the moment that it became an entity in tl labor movement. As long ago as 1872, it began to exempt sick membei from the payment of dues, and for a number of years : has disbursed large sums in sick benefits. Ample accommodations for members suffering from phyq cal disabilities have been provided by the Union at tl leading local hospitals since 1893. Out-of-work benefli have been paid to members since 1892. Local old ag pensions have been in operation since 1907, and the Unic has been paying local funeral henefiits for sixty-eight year Within the last twenty-three years (1897-1920) "Bl Six" has disbursed $1,125,106 local benefits, distributed i follows : Unemployment benefits $691,225 Local old age pensions (since 1907) 150,411 Hospital beds 40,799 Sick benefits 52,271 Local funeral benefits 190,400 In addition to the foregoing amounts, the Union bi within the same period, contributed to the Internationi Typographical Irion's benefit funds the sum of $1,238 365.41. as follows: ■ Pension Fund (since 1908) $546,175.30 Union Printers* Home 193,572.90 Mortuary Fund 518,617.21 .; Thus making the aggregate amount expended in benefli within the period named above. $2,383,471.41. SOME FACTS ABOUT. "BIG SIX" Organized January 1. 1850. Horace Greely, founder of the New York Tribune, was its first president. Membership at inception, 28. Present membership 9,045. A House of Cull, to tifCord sheltpr and rest to unem- BIG SIX'S WAR ACTIVITIES Over 1,000 members joined the Army or Naval forces I the United States. Charles Edward Russell, on the active roster of tl Union, was a member of the Root Commission that wi sent by the United States to Russia after the revolutli in that country, Chester Wright, also actively associated with the Unio was a member of the Federal Labor Mission that recent visited France, and Great Britain, on business connecti with the war. The Union contributed to the American Red Cross SalT tion Army, Y. M. C. A. and Knights of Columbus % Funds. The Union invested $73,000 in Liberty Bonds Individu members subscribed $900,000 for Liberty Bonds nnd m $3?Jll^." ®^''*°^' ^°^ ^'*'* ^^"""^^ *** the amounf In presenting our case to your honorable self we 1 to state that our relations with the New Yorli Employing ^'.in.^h'h ^''*'^^'*^*^°' ^^^^^^ Shop (Printers' Lea|ie) Branch, have been most amicable during these negotia- We contend that In the matter of ^age scales, the de- mands of the Union are never extravagant. On the con- trary, the demands o£ the organization In the past have ^r^L- ^ anything, too conservative. As an exemplification . Jr^^. ^^*^i' '^^ ^^°^^ ^^ extract from the decision of Arbitrator Frank Morrison, in the Newspaper Scale con- troversy with the Publishers, in 1919; * 'To ask the Printers to continue to accept a stand- ard of living lower than the Publishers themselves agreed to when they accepted pre-war rates is no more equitable than to ask the Publishers to reduce their living standards to meet the increased produc- tion cost. While this proposition is unusual, it can be Justified on moral ground and elemental justice if the theory of mutuality between Capital and Labor is not merely a shibboleth. "This point is made to emphasize your Arbitrator's belief that there is an inescapable obligation on the New York newspaper industry to maintain the living standards of Printers employed therein. "If the Printer had .received increases based upon $30.00 a week standard for day work in 1914, com- parative to the increased living cost of 78.79 per cent., he would have to now receive $53.60 a week to main- tain the same living standard. li! the printer be con- ceded an increase of $9.00 per week, his wage is brought up to $43.50. ACCEPT THESE FIGURES AND COMPARISON WILL SHOW THAT THERE IS STILL A DIFFERENCE OF APPROXIMATELY $10.00 PER WEEK WHICH BURDEN MUST BE BORNE BY THE PRINTERS UNTIL SUCH TIME AS LIVING COSTS HAVE DECREASED COMPARATIVELY." Thus it is evident, by analysis of the above, that the increase demanded by the newspaper printers in 1919 should have been $19.00 in place of $9.00. We contend, and it is admitted by the Employing Printers* Association, that we are entitled to an Increase in wages. The only difference between us and the Em- ployers affecting this contention is relative to the amount of increase we are entitled to. We are prepared to prove, and it is a positive fact, that the wages we have received up to the present time have been barely sufficient for the average family to live upon decently. We are prepared to prove that the wages received by book and job printers up to the present time were abso- lutely Inadequate for them to maintain that standard of living to which their intelligence and skill entitles them. We are prepared to prove that the cost of absolutely everything that goes in the life of the printer, most notably his food and monthly rent, has risen to such an extent that, unless an adequate relief is granted him at this time, his standard of living, never what it should have been, will be very materially lowered. No doubt, the attention of the Arbitrator will be called to news items published daily in the press relative to the downward trend in the high cost of living. We respect- fully call your attention to the fact that there is no actual downward trend at the present time, the news items re- ferred to being prophecies or forecasts and opinions of various Individuals, with no assurance of these forecasts or opinions ever becoming a reality. It is true that some seasonal commodities have dropped slightly from their very high levels, but on the other hand some commodities have risen higher than ever. Thus, for instance, sugar (which is used considerably less in the fall and winter, after the canning season, than in the summer months), has dropped from its dizzy height, though still much higher than pre-war periods, while butter and eggs, necessary commodities of equal importance the year round, are higher now than ever. Rents were 110 per cent, higher in October, 1920, than they were in January, 1914, and while the recently enacted legislation at Albany may possibly prevent a much greater increase in the very near future, the fact remains that our membership will continue to pay at least 110 per cent, more for rentals than they did in 1914. And so it is with nearly everything that goes into the budget of the family's living expense— hardly anything on the downward grade, while, on the other hand, indications pointing to a stin higher level for most of the essentials. All of these statements, and still more, we are prepared to prove bv statistics and data that will be submitted to you. In the "present controversy, we are prepared to prove that our demands are no more than reasonable. WE ARE PREPARED TO PROVE THAT OUR WAGER NEVER HAVE BEEN COMMENSURATE WITH THE IN- TELLIGENCE AND SKILL REQUIRED OF OUR MEMBERS. y We are prepared to prove that the wage demanded by us is no more than sufficient to permit us to live in com- fort, unhampered by the fear of poverty and want in old "^We are prepared to prove that of all the orga^i^^d trades, that of the printer requires the most skill ana intelligence. We are prepared to prove that of all the organized trades, that of the printer is the most exacting. We are prepared to prove that of all "the organized trades, that of the printer is the poorest paid, taking into consideration the skill and intelligence required. Tlie following table will prove that the percentage of increase granted other branches of the allied printing trades doing business with the book and job printers was {ar in excess of that granted members of No. 6: Increase granted since 1914— Per Cent Bindery Women's Union No. 43 175 ' Bookbinders' Union No. 1 102.5 Cylinder Feeders* Union No. 23 129 Job Feeders' Union No. 1 141.6 Job Pressmen's Union 110 Mailers' Union No. C 105. 5 Paper Cutters' Union No. 119 110 Paper Handlers' Union No. 1 157 Pressmen's Union No. 51 84 Typographical Union No. 6 SI The above table shows that of the ten allied trades do- ing business with the Employing Printers, Typographical Union No. 6 has received the lowest percentage of increase. And right here we wish to particularly impress upon the Arbitrator the fact that conditions, as regards the wage earner, are entirely different in the City of New York relative to almost any other city in the United States. No doubt statistics will be submitted by lie Employing Printers relative to wages and conditions in innumerable places throughout the country. We contend and will show that such testimony should have little weight in this con- troversy. In no other city of the United States do printers reside at such distances from their places of em- ployment, and in no other city is the one item of railroad fares as serious a one as in New York. In most other cities, men walk to and from their places of employment. In addition to that must be taken into consideration the time consumed by the printers of New York in com- ing to and going from work. While we shall show, by authentic statistics, that the value of . the dollar from 1896 to 1919 has depreciated to 32 cents (Exhibit A), the justice of our demand is so obvious that it is scarcely necessary to detail its ele- ments. (Here Exhibit A was handed to the Arbitrator.) It is merely needed to recall that we are at present paying approximately twice as much for everything we buy as we were in the first half of 1914; that the insur- ance of our lives, our health, our homes has approximately one-half the value that it then had; that our savings (those of us who have any at all) and other provisions against the uncertain future, supply us with only one- half the guarantee against poverty, sickness and old age^ to say nothing of the demands for the education and pro- tection of our children — that we possessed in 1914. We desire to impress upon the Arbitrator that In the past, relative to other trades, in the matter of wages we were at the top. This condition is changed materially at the present time. Our relative position today to other classes of labor where there is no comparison as to mental and manual requirements, is decidedly absurd. The present scale was adjusted in January, 1920, on the basis of Government figures on the cost of living then obtainable. That adjustment resulted in the grant- ing of $45, $48 and $51 for day, night and midnight shifts, respectively. The amended Government report for that period, released on May 3, 1920 (Exhibit B), (here Ex- hibit B was handed to the Arbitrator) showed an increase of 20 per cent, over its figTires of January. Hence it is obvious that the Book and Job Printers should have been awarded in January, 1920, according to the basis of settlement, $50, $53 and $56, respectively, for day, night and midnight shifts. But a contract, once en- tered into by No. 6, is inviolate, and the Book and Job Printers have borne this loss ever since with resignation. In this scale controversy, before being submitted to your Honorable self for arbitration, the Etnploying Printers had made offer of an increase of $4.00 on the present scale. Think of it! Fo-ur dollars. And this in spite of the facts contained in the preceding paragraph, coupled with the fact of the additional increase in the cost of living since the last adjustment in January. In this , connection we would respectfully call your at- tention to the tact that the Employing Stereotypers and Electrotypers, a closely affiliated trade, have just con- cluded negotiations granting a wage scale of $59 per week to all commercial stereotypers and electrotypers. This is an increase of $11.00 per week. This adjustment of wages was arrived at in concilia- tion — without going to arbitration. Again we say, "Think of it!'* Stereotypers and electrotypers, already enjoying the 44-hour week, granted an increase of $11 per week while the printers are offered $4.00. Also, we may be pardoned for calling your further at- tention to the fact that a recent Arbitration Award, aa of April 1, 1920, has increased the scale for newspaper- printers of New York City by $11.00 per week, making the scale for that branch of the business, $55, $58 and $61 respectively, for day, night and midnight shifts. ( And right here we beg leave to call the Arbitrator's particular attention to the fact that while we did accept and do accept GoTernment figures as a basis, it is well known to any and all that have any knowledge of economic conditions, that those figures are not correct when applied to the City of New York. It is also too well known by the wage earner and ad- mitted by all students of the economic question that the term "cost of living" in its last analysis is a synonym for "cost of existence." And lucky, indeed, has been the lot of the printer who, under present-day conditions, has been able to "exist' without falling into debt. It is an absolutely truthful statement when we say that the wages of the book and job printers, not what th'ey ought to have been In the first place, have never kept pace with the advancing cost of living. The statistics relative to this matter presented by the Union as evidence will prove this conclusively. And when that fact be carefully considered and analyzed, immediately it becomes apparent the tremendous loss the printers In book and Job composing rooms have had to bear. As to the printer and his calling: Before becoming a Journeyman he must serve an apprenticeship of at least five years. During that time he is constantly under the supervision of the foreman and chairman of the oflBce. During his five years' apprenticeship, in addition to his work in the office, it is required of him that he attend the school of apprentices (maintained conjointly by the Union, the Employers' Association and the Hudson Guild) at least twice a week. At tliis school, in addition to his knowledge of the printing trade, he is perfected in English, grammar, spelling, punctuation, etc. At the termination of his ap- prenticeship, prior to his admission into the Union, the apprentice is subjected to a severe examination, which he must pass successfully, failure of which subjects the apprentice to an extension of his apprenticeship period until he qualifies. Even then, after the apprentice qualifies as a Journey- man, as far as the printing business is concerned, the printer is compelled to constantly acquire additional knowledge of his handicraft. The everlasting introduction of new machinery necessi- tates the constant display of skill, placing an additional burden upon his physical and a corresponding strain upon his nerve power. The compositor of today not only has to acquire and retain the accumulated knowledge of the craft of the past four centuries, but in addition he mnst be able to meet the modern requirements by mastering the many addi- tional implements that have entered the composing room in the last twenty-five years. The Mergenthaler linotype, the Intertype, the Mono- type, etc., make many extra demands upon the printer, Increasing the output at least five times, requiring swift and accurate reading of all manner of manuscript, the development of the keenest sense of touch and hearing in order to detect any irregularity in the dropping of the matrices when being assembled, intensifying the strain upon the eye to a great degree, and demanding a much closer application' to and concentration on the work in hand than was called for in the time of hand composing alone. A composing room might be likened to an immense or- ganism, disposed in numerous parts, the complete thing, the composed form, being dependent upon the perfect functioning of the individual parts. Delay in any would disarrange the whole machinery; unison is at all times called for, and thus must be de- veloped the highest example of discipline. There can be no temporary aberrations ■ on the part of the compositor. Parts must conform, one with the other, not alone in the symmetry of the material delivered, but the schedule time of delivery must also be reckoned with. To intelligently compose any matter that may be In hand, the compositor must be possessed of a general knowledge of a wide range of subjects, must keep in touch with nil current events, must have a comprehensive grasp of the Eiiglish language and the rules of grammar, must know the game of politics as well as the game of baseball, must have an acquaintance with the science of sociology as well as with the frivolities of the social set; in fact, he must keep in touch with every thought and idea that finds expression today — art, literature, science, drama and music, and also In the common-place and baser happenings. All this is essential in order that there may be correct interpretation between the one who gives the thought, Idea, criticism or description and the one who receives it. To demonstrate the increasing demand made upon us to develop a higher class of labor power, we point to the latest additions to the equipment of the composing rooms, tlie Monotype and the three- and four-deck Linotypes. To operate these machines successfully probably calls for the exercise of mental concentration exceeded in no other productive process. It is useless for an Individual ' to attempt operation without the fullest possession of all his faculties. Now there is | one point which should not be lost sight of. Though it is true there Is the same division of labor in a composing room as obtains in most productive ej^^r- prises, and a casual observer would witness the indl- i vidual worker performing but one allotted part, still the ^ fact remains that the requirements of a composing room, and the many contingencies arising, demand that com- positors be skilled in practically every department, and " is a daily occurrence to shift us from one activity in the composing room to another, as the occasion arises. These points demonstrate the fact that the skill re- quired by us has been In a constantly increasing ratio with every new implement applied, A compositor is an admixture of both artist and mechanic. He must be a mathematician and also have a keen sense of proportion and beauty, and is required to have these developed to an exceptional degree, inasmuch as he is called upon to create his product with practically no time for contemplation. We wish to submit, that it was the skill of the printer that was the basis of his salary, and it was his salary that regulated his standard of living. And it is to pre- serve at least some semblance to that standeird of living that it becomes necessary for him to make the demand submitted to you for adjudication. It is an established fact that the work of the printer is unhealthful. In the report of the United States De- partment of Labor, April, 1917, Bureau of Labor Sta- tistics, under "Hygiene of the Printing Trades," by Alice ) Hamilton and Charles H. Verill, page 6, is the following. (Exhibit C): "In all countries the printers' trade has been considered an occupation unhealthful beyond the average, and this belief is borne out by statis- tics, which show an abnormally high sickness rate and death rate for printers as compared with all occupied males. "Examination of all available sources of infor- mation in the United States shows that in this ' country the printers' trade is prttductive of more illness than would be expected in an industry where wages are high, hours usually not long, and where there is no gross contamination of the air " nor exposure to excessive heat or cold, nor over- exertion. American printers suffer far more from tuberculosis than do occupied males in general." Our contentions as to the increase in the cost of living, the depreciation in the purchasing power of the dollar, vdll be borne out by the testimony presented by the Union. This testimony consists of studies conducted by the Union with regard to the increase in the cost of living in certain sections of New York City where members of our Union reside. In addition, a study was made of the wage scales which the Book and Job Printers were receiving during the period between 1914-1920, and comparing the same with the scales which should have prevailed according to the increases in the cost of. living. The following statistics and tables were prepared by competent statisticians and were gathered from the most authentic sources : SECTION 1.— MEMORANDUM CONCERNING INCREASE IN THE COST OF LIVING, 1914-1920. An investigation into the Cost of Living which was conducted by the New York Typographical Union No. 6 disclosed the continuous upward movement of prices dur- ing the period between 1914 and 1920. All articles of consumption have been affected by the steady ^ rise in prices, and indications are that the price levels will con- tinue to rise. For more than a year Government agencies, newspapers and employers, who were confronted by the demands of their workers for increases in wages to meet the in- creased cost of living, maintained that the upward ten- dency of prices had reached the highest peak, and that it would recede, gradually reducing the cost of living. The activities of Federal and State Governments in prose- cuting profiteering, strengthened the belief that the cost of living problem had been met. and that a remedy was found to bring the prices down, — if not to where they were before the war, at least to an appreciably lower level. In all these calculations, the wish was the father of the thought. There were" no real indications of the low- ering of prices and as a matter of fact all students of economics and social conditions were predicting a con- tinuous rise in prices. Jn a statement published January 4, 1920, Royal Meeker, then Commissioner of Labor Sta- tistics of the United States Department of Labor, declared that prices would remain high for several years to come. (1) Exhibit D. (Here Exhibit D was handed to the Ar- bitrator.) He is still supported in that view by students of the cost of living throughout the country. The different agencies which are engaged in watching the movement of wholesale and retail prices of various commodities, are in agreement that prices will continue to rise and ' none (1) See Monthly Labor Review, U. S. Bureau of Labor Statistics, Feb., 1920, page 96. of tbem are venturiug an opiuion as to when this upward tendency of prices will stop. The investigation Into the increase in the cost of liTtng was conducted by the Typographical Union not only with regard to various published estimates on the subject but by special Inquiry in the different parts of New York City, where the majority of the worlsers of the type rep- resented by "the membership of the Typographical Union reside. It must be borne in mind that most of the studies into the cost of living take into consideration the general price levels throughout the country. Bural and urban sections, as well as large and small cities are lumped together In such investigations. The estimates obtained through such investigations reflect conditions which differ greatly from those which prevail in a city such as New Yorli The following is an apt illustration of the fluctuation in the price levels between various sections of the country Tbe recently published results of an investigation con- ducted by the U. S. Bureau of Labor Statistics regarding the increase in the cost of food in different parts of the country show that the increase in the price of food In Los Angeles for the period December, 1914-June 1920 was 90.8%. while the percentage increase in the cost of food in Detroit during the same period is placed at 132 per cent. The same investigation credits New York City with an increase of 105.3%. (Exhibit E.) (2) (Here Ex- hibit E was handed to the Arbitrator.) (2) Advance Announcement, U. S. Bureau of Labor Statis- tics, Aug. 11 and Aug. 25, 1920. FOOD A number of markets and typical grocery stores and butcher shops were visited in different parts of the city and prices were obtained for the standard articles of food consumed by the average working-class family. In order to obtain the average increase in prices of food during the period of 1914-1920, the present (July 1920) prices of 22 'principal articles of food were com- pared with the prices of the same articles in 1914, as stated by the U. S. Bureau of Labor Statistics. Altogether 29 grocery, delicatessen and dairy stores, and 16 butcher shops were visited and prices obtained for the 22 articles of food. The stores were located in the following districts : Brooklyn — Fifth Avenue and 77th Street; Bth Avenue and 76th Street; 5th Avenue and 79th Street; 5th Avenue and 80th Street; Avenue J and Coney Island Avenue. New York — .Broadway and 111th Street; Broadway ana 112th Street; Broadway and 113th Street; Broadway and 114th Street; Broadway and 135th Street; Broadway and 136tb Street; Broadway and 139th Street; Broadway and 142nd Street; Broadway and 145th Street; Washington Heights Market; 6th Avenue and 12th Street; 6th Avenue and 11th Street; 6th Avenue between 11th and 12th Streets; 6th Avenue between 13th and 14th Streets; 6th Avenue and 57th Street; 6th Avenue and 58th Street; 3rd Avenue and 75th Street; 3rd Avenue and 74th Street; 3rd Avenue and 73rd Street; Lexington Avenue and 86th Street; Lexington Avenue and 87th Street. Table I and la (submitted to Arbitrator), was list of prices of the 22 principal articles of food obtained in the various stores referred to above. Table II (submitted to Arbitrator), compares the prices for the 22 principal articles of food for July, 1914, as enunciated by the U. S. Bureau of Labor Statistics, with the prices in July 20, ascertained through the investi- gation conducted by the Typographical Union, and the percentage increases. In order to obtain the general average increase in the prices of food, the following table indicating the relative consumption of various types of food was used. This table is based upon a dietetic study made by Professor Wm. F. Ogburn, formerly chief cost of living expert for the National War Labor Board, and published In the -August, 1919 issue of the Monthly Labor Review of the U. S. Bureau of Labor Statistics, page 22 (Exhibit F). (Here Exhibit F was handed to the Arbitrator.) No. of Ounces Consumed Type of Food Per Man per Day. Meat and flsh 6.83 Dairy Products 25.20 Cereals 1S.48 Sugar 2.43 Vegetables 14.61 Miscellaneous 88 Fats 1-" By using Professor Ogburn's estimates of the relative consumption of the various types of food In the family budget and weighing the average percentage increases which obtained in the different food groups accordingly. It was found that the average percentage increase In food between July, 1914, and July, 1920, was 148 per cent. RENT In order to ascertain the increase in rents for dwell- ings where members of the Typographical Union reside, a Questionnaire was submitted to members of the organiza- tion residing in different parts of New York and vicinity. Thus the sections of Manhattan and the Bronx, Brooklyn, New Jersey, Long Island and various miscellaneous dis- tricts were covered. Rent statistics were obtained from 282 members residing in Manhattan and the Bronx; 198 members residing in Brooklyn; 39 in New Jersey; 37 in Long Island and 8 in miscellaneous districts. The rents paid in January, 1914, and July, 1920, were gathered from the questionnaires distributed among mem- bers of the Union. In order to obtain an estimate of the probable increases in rent which the members of the Typographical Union will have to pay this coming Fall, those who had recent notice to this effect were asked to state the rentals which would be effective October Ist, Thus statistics were gathered showing the percentage in- crease in rents between January, 1914, and July, 1920, and where such information was procurable, between Janu- ary, 1914, and October, 1920. Table III (submitted to Arbitrator) contain the rent flgurea for Manhattan and the Bronx covering the period between January, 1914 and July and October, 1920, with percentage Increases. Table ■ IV (submitted to Arbitrator) shows the rent figures for Brooklyn with percentage increases for the same period. Table V (submitted to Arbitrator) contains the figures for New Jersey for this period with the percentage in- creases. Table VI (submitted to Arbitrator) contains the figures for Long Island, covering the period between January, 1914 and July and October, 1920, with percentage in- creases. Table VII (submitted to Arbitrator) covers the miseel- laneous districts and similarly shows the percentage in- creases in rent between January, 1914 and July and Octo- ber. 1920. Table VIII is a recapitulation of the above tables, show- ing the average percentage increase obtaining in the va- rious districts and finally the general average percentage increase in all districts between January, 1914, and July, 1920, and between January, 1914 and October, 1920. The results obtained by averaging the above percentages show that the average percentage increase between Janu- ary, 1914, and July, 1920 (282 cases) is 81 fer cent.; for the period between January, 1914 and October, 1920, cov- ering 172 cases, it is 107 per cent. The results obtained by averaging the above percentages show that for the 198 cases representing increases between January, 1914 and July, 1920, the average percentage in- crease is 83 per cent. The figures for the period between January 1, 1914 and October, 1920, which cover 85 cases, show the average percentage increase to be 116 per cent. The results obtained by averaging the above percentages show that the average percentage Increase between Janu- ary, 1914 and July. 1920. covering 39 cases, is 79 per cent; for the period between January, 1914 and October, 1920, which includes 17 cases, the average percentage increase is 101 i>er cent. By averaging the above figures, it was computed that the average percentage increase between January, 1914 and July, 1920 (37 cases) was 87 fier cent.; for the period between January, 1920 and October. 1920 (12 cnses) the average percentage increase was found to be 120 per cent. * « * •* * -•' • The results obtained by averaging the above percentages show that the average percentage increase between Janu- ary, 1914 and July. 1920. which covers eight cases, is 87 per cent.; for the period between January, 1914 and Octo- ber. 1920. (3 cases), the average percentage increase i;3 130 per cent. TABLE VIII.— SUMMARY OF RENT STATISTICS. % of Increase District January, 1914 Manhattan July, 1920 and The Bronx Brooklyn New Jersey . . Long Island . . Miscellaneous . 81% 83 79 87 87 % of Increase No. of January. 1914 No. of Cases October, 1920 Cases 282 107% 172 198 116 85 39 101 17 37 120 12 8 130 3 564 289 After taking a weighted average, it was found that the general average percentage increase in all districts between January, 1914, and July, 1920, was 82 per cent., and be- tween, January, 1914, and October, 1920,, was 110 per cent. It should be noted in this connection that an investiga- tion Into the increases in rents conducted among the members of tbe Typographical Union in February, 1920, showed an increase of 79% between January, 1914 and January, 1920. The total number of questionnaires sub- mitted at that time were 112, and the same sections of the city were included In the study. An investigation conducted by the Association for Im- proving the Condition of the Poor with regard to the rents in the sections of the city where the workers re- side and made public on February 29, 1920, showed an in- crease in rents of 69.4% (1) during the period between 1914 and 1920, which approximates the estimate obtained from members of the Typographical Union. _ (1) "The Association for Improving the Condi- tion of the Poor for purposes of comparison has made a study of the rentals paid by 100 families taken at random from its records of 1914, and of the rentals paid by another 100 families at the present time. The increase shown in the total paid by these people this year amounts to 69.2/5 per cent. The rentals by which the 1920 com- parisons were made constitute those of families who live in approximately the same districts as the cases that were selected as representative of the rentals paid six years ago. ' ' CLOTHING AND OTHER NECESSARIES Since the expenditures of the average working-class family in New York City for food and rent, constitute, according to the U. S. Bureau of Labor Statistics more than half of the total family budget, it was found ad- visable to make a special investigation in the districts of New York City where the members of the Typographical Union reside, only with regard to the increases in the cost of food and housing. It is this part of the budget (food and bousing) which Calculating on the basis of the apportionment of the various expenditures as outlined above, it was found that the general increase in the cost of living between Decem- ber, 1914, and June, 1920, was 146.4%. SECTION II.— MEMORANDUM CONCERNING WAGE SCALES OF COMPOSITORS AND OPERATORS. BASED UPON THE INCKEASB IN THE COST OF LIVING, 1914-1920. A comparative study of the wage scales of the com- positors and operators during the period between 1914- 1920 shows that the increases obtained by the workers were never commensurate with the increases in the cost of living. In fact, the workers were falling behind each year as the prices were mounting and the dollar was shrinking. Even when increases were granted in the wage scales, the total real earnings of the members of the Typographical Union were below those which prevailed before increases were granted, as the increases in the cost of living were always 4ar in advance of the increases in wages. The workers were therefore not only unable to maintain their former standards but were actually falling behind. The following pages will illustrate completely the con- tentions advanced above. Table I shows the periodic increases in the wage scales of the compositors and operators with the average per- TABLE I— WAGE SCALES OF COMPOSITORS AND OPERATORS SHOWING PERIODIC PERCENTAGE INCREASES 1 e4 H-i .9 h bo « ^ H 3 * CQ Si 0* I Cud u SCO fl t>rH 1-4 t>OS •-' V bo . M p a, « ;:: pb *32 . vco I U ' .9 On*" ^ 5 o *> "2 +J Qj 0) a>(N I. bJioa ^ g p « r, living in 1915 as compared with 1814 wna 2%, the wage scales of $24.00 and $26.00 rlspectivelv Zr he compositors and operators remained unchangid l" 1916, when the estimated increase In the cost ifiiving Eh < n o Q P EH > S o (%8tl) 066 1 IUIJ& puoUsdJioj 04 a [ B s aauM (%TS— ■OHi 'Djati uaAv) "0561 'oiBOg SSOAi. 3UIIJBA9JJ (%WI) 6161 'anii!-! JO 4 B O p3S«9I3nI H^iM. puodsaijoo 04 d I B D S OSb^ (%os ■6I6I 'aiE^S aSBM SaiiiBAajj SIGT 'Suiin JO 4 S O P3SB3J0OI iljiAV paodssjioQ 04 3 [ B D s aSBA\ (%£Z— •oui "0i9d "JaAv) 8181 '3I«3S aScAi SaiiiCAa.ij il6I 'S a I A n JO 4S00 P3SC3J0UI q4tM. pnoc[S3J.TOO 04' OIBOg 3 i( B AV -•OUI "OJOJ 'AV) > •iI6I '3I113S 9T6I '3 a I A ! 1 JO jeOO pOHBOJOUI qjia. pnodBOjjoo 04' O I B g 9SBj^ •(%E — 'oai 'oiaj *AV) •9I6T 'aiBas aSBAV SUIIJBAOIJ ■(%Z ST6I 'S u J A 1 1 JO 4S00 posBoaoai (IjiAv puodsajjOQ 14 3[BDg 3 3 B Ai (■3SB3J0ai o^) ■BI6I '3IB3S , 33BAi 3UII!'!A3'' Mr. Hurley — Wliy not make it a little earlier? Mr. Rouse — Can we make it two instead of three o'clock? Two o'clock will suit me just as well, and you will conclude your case tomorrow. The Arbitrator — We will meet at two o'clock tomorrow, unless I should find there happens to be a lecture going on, in which case we will occupy the club-room outside of my little office. Very well, at two o'clock tomorrow afternoon. (Whereupon, at 5:50 o'clock p. m. on the 8th of No- vember, 1920, the Arbitration proceedings were adjourned until tomorrow, November 9th, 1920, at 2:00 o'clock p. m.) The United Charities Building, 105 East 22nd Street. New York, November 9th, 1920, at 2:00 p. m. Present — The Arbitrator, George W. Kirchwey, Esq., and the parties as before noted. The Arbitrator called the meeting to order at 2:45 o'clock p. m. The Arbitrator — Mr. Brower, we are ready for you. Mr. Brower — Yes, sir. We will start with Part V of our Brief, headed Argument. Typographical Union No. 6 can not fail to recognize that the present readjustment is solely a question of defi- nition of terms and determination of fact under the pro- visions as set forth in an existing contract and the application of those definitions of terms and of facts un- der the specific clause of the contract. A definition of the contract terms has already been given in this state- ment — the statements of fact presented can be verified by the Arbitrator through the exhibits classified for ref- erence. For the sake of contrast, . and to bring out clearly what appears from the conciliation conferences to he the dif- ferences of position between the League and the Union in the definition interpretation and application of the con- ditions as set forth in the contract, the following parallel has been arranged: On the one side is the Union position and on the other side the League position, and I will read one and theq the other, with respect to the different positions. The Union position with respect to No. 1: 1. Increase of $18.00 per week over the present scale 13 of $45.00 or $63.00 effective October 1, 1920— Letter of August 17, 1920 to Printers' League, as follows: "At the regular meeting of Typographical Union No. 6 held Sunday, August 15, the officers of the Union were instructed to notify the Printers' League Section that No. 6 desires to open the scale on October 1, for a re- adjustment of wages only. "The scale committee of the Union present the follow- ing report : *■ " 'The Scale Committee appointed for the purpose of revising the Book and Job Scale to take effect October 1, 1920, beg leave to recommend an increase on all scales as follows: Day Work $63.00 Night Wock 66.00 Midnight Work 69.00 *' 'The scale for machine-tenders on typecasting and typesetting machines shall be: For 1 to 4 machines $63.00 F'or 5 to 8 machines 64.50 For 9 to ,12 machines 66.50 For 13 or more machines 68.50 " 'Machine tenders working at night shall receive $5.00 per week in addition to the above day scale.' "The report of the Committee was unanimously adopted. "The conference Committee of Typographical Union No. 6 will be pleased to meet the committee from the Printers' League Section at an early date for the pur- pose of adjusting this question. "Awaiting an early reply, I am "Yours very truly, "(Signed) Leon H. Rouse, President." (Exhibit A-4. Certified copy of letter, August 17, 1920.) The position of the League in the same manner seems to be summarized as follows. 1. No wage increase, effective October 1, 1920, Justi- fied on basis of combination of two factors set forth in the existing contract because at time of readjustment: (a) Cost of living declining approaching at this time practically same level December, 1919, with further de- clines in sight. (b) -Economic conditions show world wide depression and contraction; printing conditions showing decrease in volume of business, reduction in overtime and some lay-off of men. Union offers no basis for $18.00 demand, or $63,00 minimum scale. No doubt based on demand made to news- paper publishers — an amount not granted in arbitration proceedings pven when : (a) Cost of living was increasing. (b) Economic conditions were favorable. Apparently no consideration given by Union to factors outlined in existing ' contract under whjlch the present re- adjustment is being made. What about the economic con- ditions of the industry? On point 2, the Union Position with respect to the Cost of living basis for $18,000 Increase demanded — ? The League Position on No. 2: Cost of living figured between January 1. 1920 and October 1. 1920: (a) On basis of U. S. Department of Labor, Bureau of Labor Statistics, composite budget figures on 1914 as index base, latest available and published nearest the dates given above, which gives the following result: June, 1920, 119. 2% over 1914 Dee. 1919, 103.81% " 203.81) lo.'i 7.55% " Dec. 1919 (Exhibit B-2-b. p. 78, September .Monthly Labor Review.) Exhibit B-2-b you will notice is beaded "Monthly Labor Review." and it is a photostat copy from the page of the quotation quoted here, page 78. It has been photostated here. (b) On -basis U. S. Department of Labor Bureau of Labor Statistics budget figure, June, 1920, of 119.2 per cent, as reduced by published data, same source, 22 items of food and on hasls special data on clothing from other sources which weighted up as 58.6 per cent, of budget and con- verted to 1914 index base gives a 9.7 per cent, drop on the total budget or 99.80 per cent. September 15, 1920, over Decem1>er, 1914, and the following result for difference between January 1, 1920 and October 1, 1920: December, 1919, 103.81% over December, 1914. September, 1920, 99.80% over December, 1914. 203.81)^.01 basis 1914 —1.9 " Dec, 1919. (Exhibits B-2-C, B-4, B-5 and B-6.) B-2-b refprred to is the photostatic copy. I will read B-4: given In June 15, 1920, composite budget, conversion in the terms of the same common denominator must be made —the 1914 base. This is done by multiplying 241.4 per cent, plus 100 by 25 per cent.— then subtracting the dif- ference from 241.4% as follows: 1004-241.4 —341.4 X25%=85.35% 241.14— 85.35%=156.0 Clothing 16.6% of budgt- 16.6%X85.4=14.17 Basis estimate 25 per cent, reduction June, 1920 t« October 1. 1920. ...... Submitted as a part of that exhibit are photostatic copies from Browning, King & Company and Gimbel Brothers, which I will read: "Answering your request that we state to what extent the price of Clothing has fallen, at retail, since January a year ago, I would say that it is our opinion that it would average fully 25 per cent, lower on October 1st than it was selling in May and June of this year, and that it was selling in May and June of this year probably 10 to 15 per cent, higher than it was in January of this "The fall in prices has been due to the falling off of the demand and the extremely high rates for money. The fall in prices has taken place equally in all lines that go to make up the materials used in manufactured clothing, particularly in woolen goods. "While it is somewhat difficult to give specific instances of any special suit that was sold for 25 per cent, more last June than it regularly sells for now, there is not the slightest doubt, in my mind, that the average cus- tomer's money will go 25 per cent, further in the pur- chase of clothing on October lat than it would last June." This is signed by Mr. W. H. Browning, President, Browning, King & Company. Also, a photostat copy of a letter from Gimbel Bros.: "Mr. Ronalds of the Carey Printing Company desired that I should prepare and submit you certain detailed In- formation obtained from this and Gimbel Brothers, New York, with regard to decline in prices. "Am sorry that it Is not quite feasible to do so, but can say that approximately the decline from January 1st, 1920, to the present time is about 40 per cent, on men's and women's clothing and 35 per cent, on children's." That is signed by a name that I can not make out. It is a photostat copy of the official letter. Attention is called to the fact that the prices stated by Gimbel's refer to January, and that they are from 35 to 40 per cent, lower; whereas, the Browning, King & Co. prices refer to June, the point from which, we figure downward from the Government's composite figure in June. The Browning-King Company refers to an Increase of 10 to 15 per cent, from January to June. Adding that to the 25 per cent, from June to October, corresponds with the Gimbel figure of 35 to 40 per cent, recession from .Tanuary to Octobpr. Exhibit 6-B, of these statements I can only rpfer to, because it is a detail of the application to the Govem- ments's composite of June, 1920, of these two different factors that we have referred to. The decrease In the cost of food, according to the Government's later bulletins referred to here, and avail- able for check, and the decrease in the clothing lines, are in keeping with what I just read'. Applied here, they work out to the 99.80 that we have used in the minimum figure given there in the parallel. Applying the above figures to January 1st, 1920, scale would give a maximum possible adjustment based on peak of June, 1920, without taking into consideration the other factor set forth in the contract: "E<:onomic conditions," or the cost of living drop since June, 1920, as follows: 7.55 per cent. X $45.00 = $3.40 $45.00X3.40 = 48.40 Applying the decline in cost of living as estimated basis of food and clothing reduction, given above to January 1, 1920 scale, would giv«: —1.9 X $45.00 = $—.85 $45.00 — .85 = 44.15 (Exhibit B-7.) That Is merely the compilation. There Is nothing to be remarked on it by me in connection with it. Mr. Arbitrator, I should have handed that over to yon to comment on the one or two things there, to make sure that it stood (iianding paper to Arbitrator). That is different to what you have got. The percentage of dis- tribution of membership Is probably the same as from this (referring to Exhibit B-6). With regard to Eahiblt B-e, as column No. 3 refers to the percentage of 15.39 per cent, that the peak of 119.2 is over the January figure of the Department of Labor, and then applied to the 1914 wage for the various Unions. The fourth column is the scale that would result, aftpr so applying that, to the 1914 scale for comparative pur- SPECIAL DATA—CLOTHING From June. 1920 to October 1, 1920, Clothing estimated a 25 pel' decrease. This is absolute decrease on June, 1920, base. Before it can be subtracted from 241.4 per cent.. Column No. 5 is the application of the 7.55 per cent, figure to the January 1st. 1920 scale, showing in the case of Typographical Union No. 6, a peak of $3.40. figured that way as against $3.76 figured in the other manner. Then Column No. 6 shows the resulting peak scale of 14 s^wouTa rL.T;[4 »3 rws"t.r t.t"'s 1014 apaio 1^;). ■ .?^ i.is.17 per Cent. Increase on the pa^r)? ™*"~""' '= » duplicate' of that (indicating Mr. Brower-Tes. You will please keep that. to"januar'f'wlS rtif' '^""^t .levels or conditions prior to Jannary 1. 1920. do not at this time enter Into nresent readjustment— that question liavlng been covered in ttp ur'no^w'is:'*'"' ""^J-*--' »* " -ew scfilfl^oSlAue's! What increase, if any, over the January 1 loan onoio Typographical Union No. 6 is entitled to\naeri°ts c^i! Even if^by a most liberal Interpretation the Arbitrator considers this question of budget levels-that tf S3 5e» worked out by Typographical Union No. 6 in arbitration mm". «■« ^"Ml^t^B' A|sociatlon of New York City (Ex- hiblt A-9 . IS all out of proportion with the figures given m a whole SMies of budgets-studies made by the United States Government and othor public agencies and used to Th? f i'° t"„ ^"'*'"^°* *" ^"""^ 0* "■" '»wst wage nego- tatons In the country-that Is, railroads, coal minis, stockyards. Government clerks in Washington D C (E=.hlbit B-8.18 separate Budget Studlfs. average ap- proximately $2,000.00.) "'ciaso "V Exhiblt B-8-18 is a photostatic copy of a page from the study that I have referred to, and in connection there- with an explanation or somewhat of a digest of it but I won t refer to It owing to the length. ' Point 3. Under the Union position",— Economic Condi- tions, a complete blank— no reference made to it at all by them. On our side, that is, the League position, It seems as though the Union had completely discounted this as one of the factors governing the readjustment— as though they said, "We've heard all that before," and this seems to be as far as we can Judge, the Typographical Union No. 6 constmetive approach to this vitally important prob- lem of the industry. From a large number of authentic sources later on to be cited, the League maintains that economic conditions as they exist now are the result of deep seated influences among which the following are the most important — gen- eral: (a) Limit of European credit to buy. (b) Forced contraction of credits and exacting money conditions. (c) Holding off ot buyers In face of credit conditions and declining markets. (d) Cancellation of orders. (e) Liquidation of surplus stocks. (t) Increased number ot failures with relatively larger liabilities. (g) Lessened volume of building. (h) Reduced turnover mail order bouses. (i) Slackening pace in many industries with accom- panying unemployment — notably: rubber, textiles, automo- biles and clothing. (]) Slowing up of stock and bond sales. (k) Spectacular drop In basic crop prices— wheat, cot- ton and corn — raised on higher cost levels. (1) Crash In automobile trade — Ford cut, etc. (m) Decrease in bank clearings. As to the economic conditions generally, all arrows point In the same general direction, up on January 1st and down on October 1st, with anticipated further drops. It is supported by data here from the Federal Beserve Board, Dun, Bradstreet's, the Annalist, Commercial and Financial Chronicle, National City Bank, National Bank of Commerce, Babson's, Harvard GSconomic Review, U. S. Department of Labor and newspaper clippings. Of the Federal Reserve Bulletin, the following is sub- mitted as a digest; "The Federal Reserve 'Bulletin from January, 1920, to October, 1920, reveals a decided change In the American business situation, beginning with an unprecedented Christmas trade of 1919, business continued flourishing from January and into February, at which time the break occurred in Foreign Exchange, followed up by the back- iQg-up of goods In this country, ^ight price reductions, began in March, the advance set in again towards April. Beginning with May, there has been a marked tendency to readjust the price levels downward, the cuts during September being quite substantial, applying to automobiles, textiles, leather goods and other wholesale commodities." There are a number of short extracts here from several of their bulletins, which I will refrain from reading and which I have submitted to the Arbitrator's attention, which our opponents may check up by the reference bere, and I think it will be needless to go Into those at the moment. However, there is submitted charts in a photo- static form, and a table that is taken from page 964 of the Federal Beserve Bulletin of September, 1920 (Indicat- ing). The Arbitrator— Does that indicate credit curves or the changes in the volume of business or a variety' Mr. Brower — There are three curves. The Arbitrator— This Is goods, consumers' goods, goods exported? Mr. Brower— Showing a recession, a tremendous drop you see. The drop is the digest that I read, which showed about a certain time that the peak was reached, and the drop started. The Arbitrator — I want to know that so that I can read it Intelligently afterwards. Mr. Brower— Dun's Review, or Summary— January 1, 1920. to October 1. 1920. , "1919 conditions of active buying, quick turnover and price increases came over to January 1, 1920 extending to a period around April or May, where recessions began, gradually at first, but gaining momentum until the pres- ent time when no doubt is left that the recession is general in all lines. Conditions of October 1, 1920, being essentially different from January 1, 1920." There are a number of extracts, which I will pass over Just In the way. They are referred to by data of the numbers that they may be checked up by our opponents. October 9, 1920, the issue of Dun's Review, referring to Increase in Business Mortality Failures, showing a very material increase, and referring to an article on page 10, headed "Price Trend Still Downward," and a chart showing under the different characters of goods all sorts of departments; when the peak was reached and when it changed. For instance, breadstuffs, p6ak reached In June. Meats, peak reached in August. Dairy and garden produce, peak reached in May. Other food, peak reached in August. Clothing, peak reached in April. Metals, peak reached October let. Miscellaneous, the peak reached October 1st, and general average of the total, the peak was reached in May. There is a line drawn there Just to indicate to you readily as to where the peaks were reached. Do . you follow that? The Arbitrator — I see. ^ Mr. Browe^ — Bradstreet's — "Summary, January 1, 1920, to October 1, 1920— Like Dun and the Federal Reserve Board Bradstrect shows the same general contrast in the conditions January 1, 1920. and October 1. 1920— change from an active seller's market to a buyers' market, 'from increasing prices to continuing declining prices and much uncertainty as tn the future." Excerpts from the publication in the same manner as for the others are given. There is a sheet also from Bradstreet's, from October 9 issue, showing the declining September prices referred to somewhat in length. The Annalist — "Summary January 1, 1920, to October 1, 1920 — Contrast between January 1, 1920, and October 1, 1920, conditions show the same thing as the Federal Re- serve Bulletins, Dun's and Bradstreet's — rising prices, keen demand and a sellers' market in January, 1920, and the reverse true now," with excerpts from particular issues. We submit a curve from the Annalist, showing the de- crease in food prices on which has been drawn in red ink, lines showing the period In question. The Arbitrator — That goes back to January, 1919. peak reached in June. 1920? Mr. Brower — Yes; gone down and going down still, and red ink lines drawn, showing the period between which this contract is covered. The Arbitrator — To the end of October? Mr. Brower — This is down to nearly the end of Octo- ber, that particular chart. As exactly illustrating the condition of failures, there is a chart that appears also in the Annalist, showing things by those curves. The number of failures for the last nine years, and the volume in dollars. That goes back from 1912 to 1920. The Arbitrator — Yes. Mr. Brower — Which shows the high point in dollars of failures to be in 1914, and shows at the present time a steady upward curve In the number of failures, and a tremendous Jump recently in the dollar value of the fail- ures, and at the present time, prejudging almost the peak In 1915, but not so high as in 1914; that is, as regards the dollars failures. The Financial and Commercial Cbronlcle, excerpts, Janu- ary 3, 1920, page 59: "Sentiment in the Street is optimistic, based largely on expectation of a much easier money market early in the new year — also on the practical certainty that the cur- rent heavy movement of general merchandise will con- tinue and that the demand for iron and steel products will increase." October 2. 1920, page 1350: The downward tendency of commodity continues to attract attention in all business circles." Monthly letters on economic conditions and Govern- mental Finance and United States Securities, published by the National City Bank of New York. "The National City Bank Monthly Letters from January, 1920, to October, 1920, reveal, during the early part of the year, a continuance of high prices and brisk business, but with a note of warning due to inflation and the condi- tion of foreign exchange. Early in the summer appears the first material break in prices, since which time there 15 bas been necessary a gradual but distinct readjustment to lower price levels and a curtailing of business in genera? under the influence of the declining market. The read- justments reveal themselves not as a phenomena in the United States alone, but appear world wide." There are several quotations here that can be referred to in the same manner. The next one is the Commerce Monthly, a Journal of Commerce and Finance, published by National Bank of Commerce, New York. "The early high price level is clearly recognized, but its cause found in special factors not permanent in char- acter. In the May issue a note of hesitancy in business is indicated, followed by the development of a continued readjustment of business to lower price levels. The final developments summarized indicate continued decline of price level, curtailing of retail trade and the beginning of unemployment." T^ere are other quotations in the same manner as in the nther case. Babson's Summary: New buildings drop from January, 1920, a figure of $70,000,000 to August, 1920. $60,000,000. in only 20 cities. Bank Clearings, New York City, drop from January, 1920, $18,000,000 to August, $16,000,000. Business failures, increase from January, eight million to August, twenty-seven million dollars. The largest num- ber of failures since October, 1918, New Securities Issued, dropped from January, 1920, when it was $338,000,000 tn August. 1920. $168,000,000. New Corporations, per capita stock, $100,000 and over, dropped from January, when it was $2,280,000,000- to August, when it was $941,000,000, new corporations hav- ing fallen below one billion dollars for the first time since October, 1918. Babson's curve turns definitely downward, showing more extensive declines probable. There is the following detailed data from which, that resume is made, giving the names of the twenty cities with respect to the building data, and so forth. It is not necessary to read that, I believe. The Review of Economic Statistics, Harvard University Committee on Economic Rpsenrch. Summary, January 1, 1920, to October 1. 1920: * 'This data, about as good as there is in the country from an impartial source, shows practically the same contrast as to business conditions between January 1, 1920, and October 1, 1920, as do all other sources of In- formation cited: Bradstreet, Dun, the Federal Reserve Bulletin and others. The contrast is best brought out in the advance letter on general business conditions, October 15, 1920, curve B, the general business Index, showing «. decided drop. This curve was rising on January 1, reached Its peak about- the middle of March and has shown a consistent and steady decline since that period^ with predictions that it will continue to decline for some time to come." There are vnrlnus excerpts from v.irious bulletins here, all dated, showing their origin, and here is submitted the advanced letter referred to in the graph referred to, B being the business letter; A the speculation group, and G, the banking group: showing B having arisen to a peak here in March, and very materially declined since, and on that chart, between the red Ink figures is shown the period In which our contract is effective. (Indicating.) The Arbitratbr — September do^n to where it was In June, 1919. Mr. Brower — Yes. As to the make-up of this chart, Mr. Arbitrator, I can not go into it in detail. It is over my head. I will submit it to you to check it, and no doubt the other gentlemen here are able to figure or advise the other side in checking it up satisfactorily. Then there Is a further economic exhibit, we refer to a chart already submitted to you known as B-1, showing the food conditions and food charts; but while they have to do with the food cost of living data, we feel they are equal to the ecnnnmic conditions. The Arbitrator — Would this be as convenient a time as any for you to give ms five minutes off ? Mr. Brower— Just as convenient now — with pleasure. (Short recess). The Arbitrator — I am extremely interested in the gen- eral industrial situation, because I came into very close contact with it a year ago, at the height of the de- mobilization, or when it was drawing to a close, when I was in charge of the United States Employment Service. I found my predictions constantly contradicted by people like Judge Gary, and Mr. Vanderllp, both of whom at that time saw nothing but a steady rise. In our in- dustrial situation, I could not see how it could continue to progress indefinitely upward, so long ' as the whole of Europe lay under Industrial depression; that inevitably there should be some changes; but whether It affects any particular industry, of course is another question, like yours. Mr. Brower — Now, we turn to the economic conditions with respect to the printing industry, as distinguished from the general economic conditions, and I will refer to them under seven sub-divisions, so far as the League is concerned. With respect to the Union's position, it is dismissed with the question mark, no reference being made to them. (a) Shows an abandonment of many books, periodicals, publications, catalogues and other commercial printing. (b) Refers to a cutting down In the number of pages and number of copies of periodicals, publications and com- mercial work. ^ i ^ ,T (c) The amount of printing being sent out of New York, which is in greater volume than before. (d) General business conditions indicate curtailment of printing requirements, regardless of any other factors. (c) 44-hour week effective May 1, 1921, means 8% re- duction in hours and without decrease in scale, means ap- proximately 10 per cent, increase in total cost to industry, which is a definite economic condition it must face with no assurance of increased production on increase in the volume of business load factor; the two things needed to offset this reduction in hours. • None the less a vitally important economic factor par- ticularly when many competitive printing centers have passed resolutions to stay on 48-hour week basis after May 1, 1921, and Printing League Shops must meet the competition of large numt>er of open shops which will operate on basis of 48-hour week or more. (f) General reduction in overtime and laying off of night forces. (g) Wages paid In other competitive cities, except Chi- cago, generally much lower than New York. A summary of the printing economic conditions shows an industry keenly on keen competition, with a large number of srmall plants. According to the 1014 Census, about 70 per cent, of the industry employs 20 people or less. The Arbitrator — Per shop? Mr, Brower — Per shop. The industry is one generally of small profits, as the survey of 88 cities, made by the United Tyypothetae shows. It shows an annual mechanic payroll of 72 millinn dollars, with a total cost of produc- tion of $242,700,000, and it showed a net profit on the cost of only 3.4 per cent. The exhibits will be shown substantiating that. Also the New York Survey made by the same source, a short while ago, showed a 41.9 per cent, over equipment of the industry, due to a highly competitive contracting character in the industry. Also shows that the profits based on cost of production were but 2.16 per cent, in New York City, >qe less than the average rest of the country, so far as surveyed. The Arbitrator — Calculated on what? Mr. Brower — Cost of production, profits based on cost of production — total cost of production. The Arbitrator — Yes. Mr. Brower — There is a pronounced cancellation of ad- vertisements In the publications, particularly effective after the first of the year, January and February, 1921. We arp prepared to show a gross value of cancelled contracts amounting to ten million dollars for the year 1921, which had already been placed with publications, and this is a ,?ompilation of but five among the six of the publications, thi§ mainly being due to cancellations in the automobile^ tire and other Industries, which have felt keenly the present situatitm. The Arbitrator — That Is a summary of facts which you are giving morp In detail now? Mr. Brower— Yes, sir. Eshlbit C'-2-a gives the detail of the summary of the survey of the 88 cities, showing the facts that have been quoted. These totals will check with the summary that I have given there. Attached to this, is a sum^mnry as follows: "Survey of commercial branch printing industry in 88 cities, representlfig a total mechanical payroll of $72,366,- 941; total cost of production of $242,753,936. Total sales of $252,000,104, shows a loss of $S74,517, balanced against a profit of $10,120,685. or a net profit on costs of 3% per cent, of the total Industry shops surveyed." The Arbitrator— That is confined to the shops of the character to those represented in this arbitration— the com- mercial shop's? Mr. Brower — The commercial shops, yes, sir. "Satistlcs compiled by United Typothetje of America, 608 So. Dparborn St.. Chicngo, 111." Here in Exhibit C-2-b is the survey by the same people of the New York industry here. (Indicating exhibit.) The Arbitrator — By whom was that survey made? Mr. Brower— The United Typothetse, which is the Na- tional organization of the printing Industry. They sent a force of accountants here and made this survpv. at the cost of twenty thousand dollars, I believe, and It" is stated here in this book, showing the facts as I have stated them, in summary. Exhibit C'-2-c. an explanation of this exhibit. The fol- lowing four summaries of the situation in the printing industry in New York City are based upon letters received In reply to questionnaires sent to four groups: A. Periodical Publishers; B. Leading New York Book Publishers; C. N. Y. Employing Printers' Association; D. Buyers of Printing and Purchasing Agents Quotations, representing not extreme but average state- ments are made and cross reference is given to the let- ters numbered in each group. These letters grouped as indicated above, while not a part of this exhibit are available to the Arbitrator for reference. «=^'^i''", are 16 The next IS rather lengthy, and I will quote a general resume of it. and the information is all here from which It IS made up. This is with respect to the questionnaire sent to the buyers of printing. A number of answers to the questionnnires indicate that buyers of printing have been obliged, on account of increase of cost, to resort to the use of lithographed or mimeographed forms, to take the place of regular printed matter heretofore used to a considerable extent, ' The several replies also indicate a tendency on the part of buyers of printing, to arbitrarily limit their impres- sions for printing, to the same amount as in previous years, that resulting in a proportionate decrease of the amount of printed matter issued in proportion as the cost has increaspd. The following is a report from 62 periodical publishers— to give a resume of it would be quite difficult and I have to read all of the questions and answers which perhaps Is needless. The Arbitrator— Are you orally, verbally, giving us a resume for the tendency of the facts stated there in detail 7 Mr. Brower— The tendency is that they have been some- what forced to curtail printing, and further increases would require restriction. Thirty-one report that any fur- ther Increases would perforce require further restriction. Thirteen report that they would be forced out of town, and five of the sixty-two fear suspension. As I stated before, these are all cross-checked with the individual letters from the particular publishers, and can be verified. They are not .here at the moment. The next is from the book publishers. There are several summaries. I think I had better first give a summary in brief of this. The questions asked as to the discontinu- ance of titles, if any, owdng to cost of increased printing and things of that kind, and it shows a great falling off in business. For instance, one of them here says — 22 replies indicate 343 titles have been discontinued, because it costs so much more to print hooks of moderate editions, that they do not feel justified in putting out those editions which they normally would, and it is the same tenor down the line. For me to give much of a resume, I would practically have to quote it all, and I think perhaps a general resume might be of interest. The condition in the book publish- ing field in 1920 differs from 1919 iti the following re- spects: The retail trade, especially in department stores, is cutting all orders radically, and buyers are sharply com- menting on the public's objection to further incretises. Retail prices can not now be increased in face of general recessions, and wide press comment on price recessions. During the year every possible economy has been made in the manufacture of books, such as number of pages, re- ductions in cheaper quality, less stamping on covers, and so forth, so that no further increase in costs will have to be passed on. The report of the questionnaire sent to members — I do not know how to make a resume of it. Mr. Silcox — There is a resume of the report right down to the bottom. The Arbitrator — ^The report on the questionnaires sent to members of your League? Mr. Brower — Yes, sir. Do you refer to that, Mr. Silcox? It is ■ very lengthy. Mr. Silcox — There is a summary of the whole report. It gives a picture of the whole thing. (Indicating paper.) Mr. Brower — I assume I will have to read this. It is a bit lengthy. It is somewhat of a resume- of the question- naire to the members of our Association. In further evidence of the attitude of many important buyers of printing, the following extracts from letters re- ceived are submitted: * The Executive Secretary of a large religious organization, who placed with one of our members during the past 12 months, work to the amount of $101,776, writes: "It is become increasingly difi3cult and most impossible, owing to the high cost of printing, to have our work done in New York. In common with other buyers, we are sending our work outside the city. It is imperative for us to keep within our budget and as a consequence we are following the course I have Indicated above." A technical book publisher writes to one of our mem- bers as follows: "When printing prices were increased sharply in New York as a result of labor advances, we undertook the trans- fer of all composition and press-work on books to outside points. We are now producing approximately 50 new books a year and reprint perhaps 200 to 250 from existing plates. Practically all of this work is done out of town. The total in dollars and cents will probably run np to $200,000 per year. Similarly with the increase of October, 1919, we began the transfer of booklet, catalogue and cir- cular printing to outside plants. Our general catalogue and numerous advertisinir pamphlets and booklets, totaling prob- ably $20,000 or $30,000 worth of business a year, are now all printed outside." Another of our members writes of the absolute dis- continuance of two large catalogues, one a million copies, and the reduction of another commercial publication from seven issues to two issues per year. The same member reports the establishment of a plant in Highland, New York, where three publications formerly handled here are to be printed; as well as the removal of other important publications to Boston, Buffalo, Albany and Philadelphia, Another member submits original letter from a New York corporation in the electrical field from which the foUowiuK is quoted: "I have noticed a retrenchment on the part of the Company's management to go into extensive printing, due to the prevailing, high cost of production. I feel certain that any additional cost in manufacture will result in further curtailment of the printed work as an advertising medium. Even in the past year I was desirous of printing considerably more than I actually did because of the pro- hibitive costs. My funds were disbursed through news- paper advertisements since these reached a greater num- ber of people more rapidly than would circulars or other printed matter have done." One of the oldest wholesale dry goods houses in New York City writes to the same member as follows: "On account of the increased cost In printing and paper, It becomes necessary for us to curtail in this direction and we shall not, therefore, issue our full size book as, in the past. We have decided to cut the size to about one-fifth until such time as costs of production justify again issuing the same size book." One of the largest trust companies in New York writes to another of our members as follows: ' "I can say that owing to the excessive cost of printing as compared with a year or two ago, we have been pcniti- Qizing our expenditures in this respect very carefully of late and have limited our printing orders so thnt tbey include only those things most urgent and necessary to publish." A well-known publisher of rating books writes a mem- ber of the abandonment of advertising literature, service booklets and monthly quotation records, owing to the "con- tinually mounting costs for printing." A business Association writes a member: "We have de- cided not to. print the proceedings of the Convention owiny to the present prohibitive printing costs," One of our larger members reports the discontinuance of five weekly and monthly publications, the change of two monthly publications to bi-weekly issues, the reduc- tion in size of one publication and the loss to out-of-town printers of ten periodical publications, formerly handled by this bouse. Another member, whose plant is not so large, reports the loss of one publication to Burlington, Vermont, one to Peekskill, New York, one to Asbury Park and another to Grand Rapids, Michigan. One of the largest printers in our Association reports the loss to out-of-town printers of seven publications. Three of these are well-known standard magazines, two monthly and one a weekly. It says in connection with this report, that the Bureau Committee begs to submit all original letters and docu- ments referred to herein. The Arbitrator — I was going to ask whether the writers of the letters are given? Mr. Brower — The letters are available, and they are sub- ject to check. There are extracts from several of the let- ters which are subject also to verification, but I do not think it is necessary to read them at the present time. The Arbitrator — Very well. Mr. Brower — We submit a statement signed by Mr. Fred-, erick Hume, Secretary of the Executive Secretary of the National Publishers' Association: "In further contention and proof of the economic condi- tion of the industry as it affects the publisher, a request was made of five of the leading publishers of New York City, for a list of the National Advertisers, the cancella- tion of whose contracts, although not now apparent, will become effective in January and February of 1921, which totals in advertising revenue a gross volume of ten millions of dollars ($10,000,000). In proof thereof, the following list of National Advertisers are given: "Note — A number of the advertising firms are using all of the five, while others use but one or two; some have cancelled entirely, and some have reduced their space." Now, this is a long list; I do not know it is necessary to read it. It is open to verification. I will read some of the names: Armour, Swift & Co., Thomas A. Edison Co., Franklin Auto The Arbitrator — As indicating the character of it? Mr. Brower — The Publishers state further: "In giving you the list attached of Advertisers who have cancelled their 1921 schedules in our publications, we have made it cover such advertisers as had since September 1st cancelled their full schedule. I do not think this repre- sents the true situation, as many advertisers simply cancel from month to month, so that, if anything, the cancellation situation is a little stronger than is represented by the list attached." Then there is a statement from the Publishers pertaining to the interest of the Publishers, regarding "The Efconomic Condition of the Industry." It is as follows: "The concern of the Publishers of New York City in the present controversy is based upon two facts: (1) The effect on the future cost to those who now have their printing done by members of the Association of Employing Print- ers, and (2) Publishers who do their own printing and engage memb^era of the Unions also engaged in this con- troversy. "In the attempt to analyze the 'Economic Condition of the Industry,' the Printing Industry will be considered as the subject in question, and insomuch as the Publishers* business with the Association of Employing Printers is a material factor in the annual volume of business done by them, also that there are factors beyond the control of the Publisher involved in this presentation, make the Pub- lisher subservient to the conditions displayed in the at- tached Exhibits A-B-G. "The purpose of such exhibits are to correctly reflect the economic tendencies, as they co-ordinate with the gen- eral economic trend offered in proof of the contention as to the 'Increased cost of living,' submitted in conjunction herewith in the brief, of which this is a part. "Aside from the three (3) factors of Labor, Transporta- tion, and Percentage return on volume of business done, or Capital invested, the question of the known and estab- lished increased costs of materials, such as Paper, Inks, Lithographing and Engraving has not been compiled or submitted for the reason of the varied character of the many publications involved. "Cancellations by National Advertisers (not now appar- ent) effective after January 1st, 1921, show a reduction of 12% per cent, from present average advertising income which, unless replaced, will affect the income revenue pro- portionately during the coming year." Shall I refer to these exhibits? Mr. Silcox — Yes. Mr. Brower — "Exhibit A — covering Increase in Wages of the Unions involved — are based upon actual increases that have been effective since 1917, and are a matter of record." This Exhibit is a graphic scale made, and showing the several effects in the different departments, I believe. "Exhibit B — Transportation costs reflect the increase in costs that have been imposed upon the Publisher, in Post- age Rates, Express Rates and Freight Rates. The Postage Law was enacted in October of 1917, and became effective July 1st, 1918, having four (4) annual increases terminating July Ist, 1921, which means an increase from one (1) cent per pound flat .rate to an average of 3.S cents per pound or an increase of 280 per cent." TbM.t is the Schdule B here. "The express rate has been increased 60 per cent, in the past four years, and the freight rate 100 per cent., both havitig now been authorized by the Interstate Commerce Commission. "Exhibit C — A composite curve of 20 publications where Union help is now employed and clearly shows the Economic trend of the industry, principally the marked decrease in net earnings to volume done, as shown in the percentage figures given. "It is apparent that any further increase in costs and consequent reduction in percentage of interest return, will diminish the attractiveness to Capital necessary to the progress or further expansion of the Publishing Industry as a whole." This chart ds in a sense a most imposing one (indicating Exhibit C). The black line is the net per cent, in return, showing a very violent drop since the beginning of 1919, and the gross income, you will notice, has violently or precipitously increased in the same period, and the gross operating charges have caught up faster than the returuB, the gross returhs. Therefore, you have the line of return going down precipitously, whereas, against the period of 1912 here (indicating on chart) following this, there is an average return of about 15 per cent, upon the , invested capital in these twenty publications, and at that time there is a total gross volume of business of less than five million dollars. At the present time, with a gross volume of business of twenty million dollars, the return is about 7% per cent. on the money invested. This composite was made up by a firm of public accountants, Ernst & Ernst, from the re- turns submitted from the twenty publications submitted in confidence, to the public accountants, from which this com- petent figure was made up and charted. Mr. Douglas — May I ask just now, are the names of those magazines recorded there, those periodicals? Mr. Brower — They are not, but they can be given. I thought they would be placed on there. They are to be given. I thought they were to be placed on here, and certification by Ernst & Ernst of the compilation here will be made, and Ernst & Ernst are a firm of C'ertifled Public Accountants in the city here. Mr. Rouse — May I ask a question — this is the volume of business, as 1 understand it, done by those people, without submission of their names — without submission of their books for Inspection for the Arbitrator? Mr. Brower — This chart is submitted in Its verified form by Ernst & Ernst — it will be submitted. Mr. Rouse — I would say that in evidence of such char- acter, it would be but fair and just to any inquiry, that they should have no objection to a scrutiny of their books by the opposing side, to verify statements. Mr. Oppenheimer — I would not go so far as that, but I would say that the same confidence be placed in the Arbi- trator as was placed in the Accountant. Mr, Brower — I have not any doubt but what that will be granted. At the present time, I have not the authority to speak for the Publishers, nor for the individual pub- lishing concerns. I have only the authority to state that the names of the twenty publishers will be given in the certification of Ernst & Ernst with a compilation of those facts. ' Mr. Oppenheimer — ^That would be Impossible of proof In that nature and in that form. You should give the oppos- ing side a chance to disprove any statements that are con- tained in your Brief. Mr. Rouse — We submit Mr. Oppenheimer — Because our Brief is based on that. That is, our Brief is submitted subject to disapproval by your side. Now, your side should give us the same op- portunity. Mr. Rouse — We submit this fact — that this is a con- troversy between Typographical Union No, 6 and the Em- ploying Printers* Association. The Employing Printers' Association are the ones that we are directly concerned in. Typographical Union No. 6 is the party that you are di- rectly interested in. Between us and the Publishers is what you might term a middle man. You are contracting printers. We are the men that do the work for you. It is directly to the interest of the parties who have sub- mitted this statement that we should lose in this con- troversy. We know they are all contemplating an Increase in their advertising rates, an increase all along the line of their production, to the consuming public, and any evidence of that character submitted, if it is to be considered as evidence, should have the closest scrutiny, as to its accu- racy first; second, they should have no objection to show- ing their profits during this period, and their present * profits, A mere statement of that character is not fair. Mr. Brower — I am not objecting to your challenging The Arbitrator — I was only about to remark, I suppose, that is matter for rebuttal. Mr. Brower — I was going to say the same thing. The Arbitrator — To get in evidence, or any argument which may be submitted, I have, however, allowed it, be- cause I thought it might be useful to both sides. It might be useful to you, Mr. Brower. If you should choose to furnish additional evidence, corroborative of that diagram, and the statements made by these magazine publishers, but. apart from that purpose, I should say that whether the evidence should be considered or not, is a matter that will be properly argued when we come to the rebuttal; that is to say, whether I, as Arbitrator, should consider it or not, and what weight, if any, should be attached to it. Mr. Oppenheimer — That is a good stand. Mr. Bouse — I accept your position, Mr. Brower — That is the point I use exactly, that we should proceed here, and they should question it in any way they choose. The Arbitrator — And after they have rebutted, that there should be an opportunity for you. Mr. Brower — To substantiate it. The Arbitrator — Yes. Mr. Brower — I further submit, as showing the economic condition of the Publishing Industry, an extract from the Magazine of Wall Street, of October 16, 1920, entitled "Butterick Company — Publishing Profits Eaten Up by High Labor and Paper Costs." A few extracts are as follows: ' 'Instead Butterick earned only 17 cents a share for the first six months." "Butterick did far better in the years before the war." Again: "Comparisons. Factors which contributed to Butterick's prosperity during pre-war years, no longer exist. The cost of labor has advanced tremendously. In addition, the cost of paper has increased by leaps and bounds. It is true that the company tried to keep pace with the, increase in its operating expenses by advancing the cost of subscriptions and advertising; but, comparatively speaking, it failed. This needs no further proof than the fact that, in spite of these increases in subscription and advertising prices, the company actually lost ground so far as earnings were concerned. "Conceding that the peak of high prices has passed, it IS obviously illogical to expect Butterick to raise the price of its subscriptions and advertising. No relief from this source., therefore, can be expected. Will the situation be alleviated by lower costs for labor and paper — the two principal items of cost in the publishing business ?' ' * • • * "On the operating side, therefore, Butterick seems to be in for a period of sustained high costs, at the same time that its volume of business may decrease, owing to uncertain industrial conditions." Now, Exhibit C-2-e. It is headed "Analysis- Reduction Overtime and Force," The survey from our members shows the following- January 1st, 1920, compared with September, 1920, shows: 14.05 per cent, less in number of force in September than in January. 55.04 per cent, less day shift hours in September than m January. 71.58 per cent, less night shift hours in September than in January. 2- Survey, April, 1920, to October, 1920, shows: f«^ n f^H '^e^t'.^®"^'^^^ *" average number employed dur- ing October, 1920, as against April, 1920. 18 The following detail tabulations show basis of above Conclusions. (1) January, 1920-September, 1920. ences when an adjustment is honestly sought, and where differences are baaed upon the proposition of advancing the Interest of the trade at large and conserving the great (^Average Number of—, Employees During Month of Sept., 1920, Jan., 1920 to Date Composing Room : Typographical No. 6 2,774 Mailers' No. 6 Non-union Pressroom : N. Y. P. P. No. 51 P. P. F. & A. No. 23 J. P. & J. P. F, No. 1... Paper Handlers No. 1... Non-union Bindery : Paper Cutters No. 119... Bindery Women No. 43 1,050 Bookbinders No. 1 Non-union r-Total Number of Overtime Hours First Two Full—, Working Weeks , January, 1920 ^ ,^-September, 1920-^ Day Night Day Night Shift Shift Shift Shift 2,774 69 116 2,321 67 120 17,483 502 666 3,683 198 3,331 313 219 758 47 1,042 1,140 392 207 127 932 993 356 18S 126 5,683 7,295 2,359 2,992 1,274 3,691 2,462 149 441 397 4,243 3,640 1,567 2,316 888 1,231 1,060 64 26 65 36Q 1,059 249 445 868 826 246 454 2,990 4,161 2,021 4,067 51,393 962 785 1,544 1,192 318 1,535 23,104 330 23 30 7,980 14.03% 6,997 12,788 55.04% 3,634 71.58% Note: Beplies from 110 firms. Total League members — 220. (Page 2) APRIL, 1920-OCTOBER, 1920 Average Number of Employees During of April, 1920 Total No. Question- naires received . . . 172 Blank or defective . . 7 Total supplying in- formation 165 Composing Room: Union 4,456 Non-Union 276 Pressroom: Union 5,166 Non-Union 658 Bindery : Union 3.046 Non-Union 1,266 Oct., 1920, to Date De- Per- crease centage 3,933 238 523 18 11.7 6.5 4,333 476 683 182 12.2 27.6 2,693 1,102 . 353 164 11.5 12.8 14,868 12,995 1,873 12.5 Mr. Brower (Continuing) — Those individual reports, by the way, are accessible to our opponents for checking. Mr. Konse — We would question a statement of that kind, Mr. Brower. . Mr. Brower — We feel that we should in fairness make that statement in any event. Mr. Rouse— We submit that such statement cannot be offered by your members as proper evidence, because we are not in a position to rebut It, with accuracy. Mr Brower — I wish to quote Exhibit C-2-f, Reports of o'fflcers to the Thlrty-flrst Year Convention of the International Printing Pressmen's and Assistants Union of N. A., October 4-9, 1920. The President's Report: (p. 1). . To the Officers, Delegates, General Membership and Visitors to the Twenty-eighth Convention of the International Printing Pressmen and Assistants' Union of North America: ,. , ... .. . "We have not been unmindful of the adversities that have confronted the Industry during the period elapsing since our last convention. In common with the increased cost of the necessities of life there has come an unusual and unprecedented increase in the cost necessary in the production of printing. Raw material of every character, overhead cost, interest upon money all advanced and have fluctuated to such a degree that stability in the industry was almost impossible to maintain. "In many cases our organizations have been compelled to withdraw their demands because of the physical con- dition of the business. In many other instances employers have given increases in wages with the hope that the In- dustry would adjust itself so that the changed conditions might be effectively met. The spirit exemplified by both oafties in such instances indicates the growth of a better understanding between the pressroom workers and the em- ployers of this country, a true realization, in other words of the existence of a genuine community of interest. It is a direct contradiction to the claim that we are not part of the industry. Our record during the past four years Droves that there is a basis upon which the units of the hn»iness of printing, whether they be employer units or employee units can always find adjustment of their differ- printing institution upon which we are all dependent for our economic existence." Unless wages in industry are to be merely the resultant of the blind use of economic power or are to be determined, as in many cases they are by a line-of-least-resistance- expedient-rule-of-thumb-compromiae, like splitting the dif-* ference between what is demanded and what migbt be offered, there must be some principles assumed and ac- cepted at least as a guide, in order to intelligently arrive by some basis of measure at a conclusion which will be considered as Just, fair and reasonable, not only to the particular craft under consideration, but to all crafts and to the Industry as a whole. It has been the desire of the League in presenting its case to point out to you that certain principles were recog- nized and set forth in the contract as a guide to reach a decision. The question of wage increases to the Unions is to the employe ers one problem, involving one large group, namely, the employees, producing one result, namely, Increased labor cost. The basic method for readjustment of the existing wage scales having been determined on the basis of the factors stated In the various contracts, the League proposes that It be applied consistently to all of the Unions involved. The contract established in the January 1, 1920, scales a differential relationship between Typographical Union No. 6 and the other crafts in the industry. It is the proposal of the League not to change this differential at the present time, but to make a fairly uniform adjustment on the basis of the factors cost of living and economic conditions of the industry which are uniform in all of the contracts. In doing this, the League proposes no increase at the present time to any of the Unions for the reasons stated. As has been mentioned, the printing industry is just now beginning to reach the same situation as that reached by the clothing industry some time ago when it faced, despite increased living costs, the necessity of maintain- ing through arbitration the same wage level to meet a then existing acute depression of the clothing trades. Deci- sions for Baltimore, Boston, Chicago and Rochester, reached by the employers and employees through joint im- partial arbitration, are so clearly in point in this case that they are given in full among the exhibits (as Exhibit D-1). The following excerpts, though, are sufficiently important on this question of economic conditions and cost of living to be quoted directly here: Baltimore: Decision of the Special Board of Arbitration with respect to the Demands presented by the Amalga- mated Clothing Workers of America to th6 Baltimore Federation of Clothing Manufacturers. (Dated August 17, 1920.) "1. The Board will not award any general increase of wages at this time, because of the serious conditions pre- vailing in the clothing industry In Baltimore, and through- out the country. If, however, during the present season, conditions In the industry should change so as to warrant the Board in granting a wage increase, due notice will be given to the Manufacturers and to the Union that the Board will take up the question of an increase for further consideration, and the Board, as a condition of its present decision, reserve to itself the right to grant a general in- crease, or an increase to any section or sections if in its judgment the facts and circumstances Justify such action." Boston: Decision of the Special Board of Arbitration in the Matters of Controversy between the Clothing Manu- facturers' Association of Boston and the Amalgamated Clothing Workers of America. (Dated August 30, 1920.) "2. In regard to the wage demands made by the union. 13 the Board is of the opinion that no general increases in wages should be granted at the present time on account of the serious conditions prevailing in the clothing indus- try in Boston and throughout the country. If, however, conditions in the industry should change so as to warrant, the Board in granting a wage increase "before the union under the agreement w6uld have a right again to present wage demands, due notice will be given to the Manufac- turers and to the Union that the Board will take up the question of an increase for further consideration. And the Board as a condition of its present decision, reserves to itself the right to grant a gfeneral increase or an increase to any sections if the conditions in the industry should change so as to justify such action," Chicago: Decision of the Board of Arbitration for the Chicago Market. (Dated August 18, 1920). "On the question as to whether readjustments should he made, the union claimed that the cost of living had increased since the award of December 22, 1919, that it is still increasing, and seems likely to increase further, and that increases in wages are being given In various other industries. "The manufacturers urged that for the best interests of the industry, prices should be kept as low as possible, and submitted information as to present conditions in the industry. "The Board holds that conditions in the industry are not such as to justify a change in wages at the present time." Rochester: Decision in the Matter of the Request of the Union for Equalization of Wages in Rochester with Other Clothing Markets. (Dated August 25. 1920). ■ "As a result of . these extended investigations, the Chairman is convinced that the earnings of the piece workers in Rochester, w*th the exception of a few sections, are on the average about the same as the earnings of the piece workers in Chicago, - which is the chief competitive piece-work market. Most of the week workers in Roches- ter, however, are earning considerably less per week than the week workers in other mg,rkets. It is true that the clothing workers in Rochester have had more steady work than the people in other markets, but even if allowance were made for this fact the Rochester week workers on the whole would still be earning less than the week work- ers in other clothing centers. "Under ordinary circumstances it cannot he doubted that a request to equalize labor costs with competing employers and markets is a just request. The intelligent and in- formed public opinion of America no longer considers it sound industrial policy to permit employers to seek advan- tage in competing with one another by getting the same kind of labor at lower wages. Competition among em- ployers should be in efficiency of management, salesman- ship and service to customers, not in getting cheap labor. The clothing worker in one market has a right to expect the same wages and standard of living for his family that other markets where successful business is carried on are able to pay. "If this were the only consideration an increase to the clothing workers of Rochester would surely be justified. But the conditions and prospects of business at the time that increases are given must be carefully considered. At the present time the clothing industry throughout the coun try is experiencing acute depression, and it will be as harmful to the wage-earner as to the employer to place any additional financial burdens on the industry. To grant wage-increases at a time like this would merely postpone the day when prosperity can return to the industry again. It would appear like mockery to the worker to give him a wage increase at the very time when he is being laid off, for lack of work, and an increase at such a time might well endanger the standards of living the clothing workers have already attained by creating an amount of unemployment that would result in cut-throat competition for jobs at any wages, no matter how low they may be. The best that can be hoped for at the present time is that existing wages and standards of living shall be maintained. "The Chairman is, therefore, of the opinion that on ac- count of the serious conditions prevailing in the clothing industry in Rochester as well as in othet clothing markets, no general Increases can be granted at -the present time. If, however, conditions in the Industry should change so as to warrant an increase before the Union would have a right again to request a general wage adjustment under the agreement, due notice will be given to the employers and to the Union that the Chairman will take up the ques- tion of equalization of wages with other markets. The Chairman reserves the right, as a condition of the present decision, to make such wage adjustments as may be neces- sary, if conditions in the industry should change so as to warrant such action before the agreement would permit an adjustment to be made." It is to be noted here that those adjustments not only involved a question of increase over and above other cloth- ing centers, but, as was the* case of Rochester, an equaliza- tion, the justice of which was recognized, but the Arbi- trator for that market, after a full investigation, found It necessary to deny the demand for a wage Increase be- cause of the economic conditions of the industry. That Industry, by joint action, chose the rational method of meeting their difficulty rather than simply going at it blindly, by trial and error— the Union not saying, We are not concerned with the economic conditions, we ve heard that before," but on the contrary, definitely recognizing the importance of the economic conditions of the industry. Why cannot the Printing Trades Unions of New York han- dle their problem in somewhat the same scientifically con- structive way — probably because they are not concerned with the economic conditions until after the collapse has come and their men are out of work, at which time it is too late. VI. CONCLUSIONS. 1. The existing wage scale of $45.00 per week should be continued in view of: (a) Decreasing cost of living, on October 1, 1920, level, approximating that of January, 1920. (b) Acutely depressed economic conditions with prospects of continuing declining markets. (c) Reduction in hours from 48 to 44 on May 1, 1921, with no reduction in scale. 2. Decision on Typographical Union No. 6 inextricably involves interrelated affiliated Printing Trades Unions af- fecting League wage relations with all the Unions. No increase at present time is League position with all the Unions. At this time there are being arbitrated the cases of: Mailers' Union No. 6, I. T. U. N. Y. Printing Pressmen's Union No. 51, I. P. P. and A. U. N. Y. Job Pressmen and Job Press Assistants' Union No. 1, I. P. P. and A. U. K Y. Press Feeders' and Assistants' Union No. 23, I. P. P. pnd A. U. N. Y. Paper Handlers' Union No. 1, I. P. P. and A. U. Bindery Women'^ Union No. 43, I. B. of B. Paper Cutters' Union No. 119, I. B. of B. It is urged by the licague that before there is final decision rendered on this case, the arbitrators for all of the Unions go into joint conference, even though they ren- der decisions separately. Exhibits D-2 and D-3 are further submitted. Exhibit D-2 is the Arbitration Award by William E. Kelly, as Arbitrator, between the Publishers' Association of the City of New York and Typographical Union No. 6. Exhibit D-3 is a copy of the Arbitration Award of the Board of Five, of which Judge Martin T. Manton was the Umpire-Arbitrator between New York Printing Pressmen's Union No. 51, I. P. P: and A. U., and this Association, last February, and it is dated March, 1920, from which one paragraph is quoted: "We also feel that this has met vrith the approval of the large majority of the men engaged in this craft. Thirteen out of fourteen unions engaged in this craft, have agreed with their Employers upon the basis of the Nine Dollar ($9.00j increase. This means that out of 19,750 men engaged in the craft, all except 2,800 have agreed upon an increase of Nine Dollars ($9.00) a week." Further presented for your attention is Exhibit E-1, to- gether with a map covering New York and the country beyond Milwaukee and St. Louis. Noted thereon are different cities, and their wage scales, and the scale sbowing the distance within a certain dis- tance from New York here. The corresponding competitive zone that they occupy, and a list of the various cities and the wage scales are the tabulations shown on this map, the wage scales exist- ing at the present time in those various cities. (Indi- cating.) Now, H^hibit E-2 shows various wages in various de- partments, the country over, particularly for the purpose of showing a tabulation of compositors' scales in twenty- four cities over 100,000 population, within 400 miles of New York City. It covers Connecticut, and it takes in the Cities of Bridgepor*. Hartford and New Haven, the Dis- trict of Columbia, Washington, Baltimore, Maryland, Bos- ton, Mass., Springfield, Mass., Worcester, Mass., and New Jersey, Camden, Newark and Trenton; New York. Albany, Buffalo, Rochester and Syracuse; Ohio, Cleveland; Pennsyl- vania, Philadel-phia, Pittsburgh and Reading; Rhode Island, Providence; Virginia, Richmond; Canada^ Montreal and Toronto. It is further submitted a wage scale as Exhibit B-3, of the Chicago Typographical Union with other Unions, effect- ive August 25, 1920. The Arbitrator— That Is the recent readjustment? Mr. Brower — That is the adjustment, August 25, 1920, to which the following is noted— that the adjustment was made at the very time when peak figures were the only figures known, and before recession in prices set in. The Chicago contract is specific in the contract, and that there Is only one factor as a basis of adjustment, namely, the cost of living; but the contract provides readjustment each six months' period, with provision for reductions or increases, provided the scale does not fall below an ir- reducible minimum of $42.00 per week. There Is consequently an adjustment, possible, to take place If conditions justify it, In February, with that Union, and with the continuing declining prices. It might well mean that the Chicago scale at that time would be re- duced from its present point to anywhere down to its 20 irreducible minimum of $42.00 per week, if the cost-of- liYing factors at that time Justify it. There is just one more factor at the moment that we wish to present I will present it entirely orally. It is the Postal Zone System, and its effect upon Ne^fr York Cltv as a printing center. The Publishers In their brief re- ferred to the fact that the' Postal increases were a ma- terial factor in their costs; that they had gone up as was stated and that even now their peak has not been reached, that there is to be a further increase eflCectlve July 1921 which they must face as an economic factor in their in- dustry. But, quite irrespective of that feature of the situation, there is a feature that to us is much more menacing to the Job Printer. It is the fact that for the last fifty or more years, since the United States has been carrying mail at a special rate, under second class privileges, for the same price any- where in the United States, whether it was New Orleans, San Francisco, or Chicago, from New York bs a center, or any other point as a center, that tlie publishing industry has built up around New York City, and the printing in- dustry consequently has built up with it; but the result now is, because of the operation of the Zone Law, that a publisher Is quite likely to find it, and some have found it, economically advisable to move part, or all of their busi- ness from New York, because they could obtain quicker distribution to other centers, and because of the reduction in the postage in sending their periodicals to their re- spective destinations. One particular instance I would quote is that of the Hearst publications. At the present time they have taken part of their editions to and are now printing them in Chicago; whereas, in October of last year, about one year ago, or prior to that, September or October— I am not at the moment sure which — they were all being printed in New York City. We appreciate the" fact that this factor of the Zone Postal Law is not one that our opponents are responsible for, nor are we. It is one that we both fought hard to defeat — sending delegations to Washington to meet with the Publishers, but all to no effect. The law went through. And it is a fact that we have got to meet as an industry; and it seems to us that this is clearly one of the factors in connection with the economic condition of our particular industry, that must be given weight to, and very material weight at the present time, in the. consideration and con- clusion of our wage negotiations. The Arbitrator — Are we justified in assuming that that legislation will be permanent in character? Mr. Bouse — No, sir, you are not. Mr. Brower^You are not. At the present time I am not in a position Mr. Rouse — Doctor, may I answer you? The Arbitrator — I want to get the opinion of Mr. Brower on that point. I heard so much discussion in the news- papers about that. Mr. Brower — I do not know. I do not attempt to express opinions. I am expressing a fact. The Arbitrator — Exactly. Mr. Brower — With this, Mr. Arbitrator, we rest our case today. Thank you very much for your patience and interest in this case. The Arbitrator — I very much appreciate the labor and skill that has gone into the preparation of these briefs. They do present a very interesting and very complete pic- ture of the conditions upon which this Arbitration is based. What is your pleasure with regard to our further pro- cedure ? It is understood now, I take it, that the material that has been submitted will be put into shape for interchange and for the use of the Arbitrator? Mr. Brower — For the use of the Arbitrator. The Arbitrator — And will be studied, and at a time to be approximately fixed now, we shall meet to hear argu- ments in rebuttal. Mr. Brower — I do not know whether we can approxi- mately fix any time now. It seems to me as soon as either •side is ready, that they can approach the other side, be- cause we may be a little more dilatory than our friends in getting to that point; because we are under the necessity at the present time of going on with the arbitrations of the other Unions, which take up somewhat of our time, and it takes from us the time we might otherwise give to this. The Arbitrator — You are the defendants in these cases — there are some more? Mr, Brower — Eight arbitrations in all at the present time, with a uniform contract for adjustment as of October 1st. The Arbitrator— It is extremely interesting. I should think you must be busy. Mr. Brower — An extremely busy time, I assure you, Doc- tor. You realize what has been done here before you, and we have seven more presentations of that character. The Arbitrator — Yes. Mr. Rouse — Doctor, there is one point that has been brought out in the Brief there that we, at this time, want to make ourselves very clear upon, and that is this: The suggestion by our opponents that therp be a meeting of all the Arbitrators before any adjustment is made. We de- cline to accept that. We refuse to even consider it. It is without any right before you. There is no equity in it. There is no Justice in it. There is no real sincerity behind it; and when the gentleman says it is a uniform contract, he states what is not true. We handed to you a document which is specific and clear in all of its terms, an Arbitration Agreement with Typo- graphical Union No. 6; and from the very beginning of this dispute we have tried to bring to the attention of tbe Employers, that we wanted to adhere and live up to thaj: contract. The date of our letter to them in August was submitted In evidence by them. ' The first conference in these proceedings was held on the 26th day of August. We implored them at that time to adjust and confer and carry out tbe terms of that contract. We received a notice to come to a general conference on the 23rd of September; almost a month elapsed before they even notified us of a further conference, although the terms of the contract are specific. Then we declined to enter into a general application of our agreement, because it is specific and clear, as I have stated, with our organ- ization. Then, again, we met on the 1st of October, on the 8th of October and the 14th of October — all the time request- ing the Employers to proceed. So that this controversy could have been adjusted a long time ago; and we dissent from "any such implications as have been placed before you in these general terms. They are not truthful and they are not fair and they are not just. Last year, one of the specific conditions laid down^ to us was that we must make an Arbitration Agreement, and so forth, before any proceedings would be carried on with this Association. That agreement was made. Now they are turning back from their position of a year ago, to a new position; and we dissent from it, and we insist on that contract being carried through to its conclusion, which specifically states how these proceedings shall be conducted. The Arbitrator — I assume, gentlemen, that there is no dispute on this proposition' — that I have been invited to arbitrate only tbis one case, and not all of them? Mr. Brower — Sure. Mr. Oppenheimer — That is a fact. The Arbitrator — And that I presume that the question of the general policy of dealing with all of tbe differences which have arisen within the trade, as a whole, is a ques- tion which does not come before me unless it is submitted by both parties to the controversy; in other words, that I have to arbitrate this one case and not the other cases. Mr. Oppenheimer — Absolutely. Mr. Rouse — That is correct. The Arbitrator — Then L cannot have the evidence in the other cases before me, so as to proceed with respect to them — I would assume that I should act independently with respect to the matters going outside of this immediate arbi- tration, — that I could not act without the concurrence of. the parties to this Arbitration. Mr. Brower — We respectfully submit, Mr. Arbitrator, with regard to the implications of our sincerity and fair- ness, that we are perfectly willing to leave that to your- self to determine. The Arbitrator — You may have noted that I made no reference to those. I am personally satisfied with your sincerity. Mr. Brower — We submit here the exhibits which will substantiate what we have said; and it certainly surprises me that our opponents would presume to circumscribe you in reaching a decision in this case. We do not in any way circumscribe you, or wish to cir- cumscribe you in those matters; and it seems to us that you have a duty to perform here with respect to this craft, and also must take into consideration- the inter-relations between this craft and tbe rest of the crafts making up the industry. At the present time there are to be nine awards, pos- sibly by nine Arbitrators. In the case of an award some time ago by the War Labor Board, with this organization,' and I think with the Pressmen's Union No. 51, whereby that award was by them deemed to be out of line, dis- content and unrest was created by that very out of line decision, made independently, one craft with the other, and because of that very condition the Employers stepped in and equalized the conditions; and those' equalizations were readily accepted by the organizations affected, showing conclusively the feeling of inter-relation between crafts in this industry; and it has manifested a possibility that there may be eight decisions that will be so different from one another, that you will have' worse than a "Pandora's box" in this industry, and it would seem to the Employers that while your duty in this case is to one craft of the industry, your duty is further to see that the decision is one that is fair to both sides, per se; and also that does not so far go out of line with the tenets of the industry, that it simply creates more dissatisfaction than it does good. The Employer has only suggested this for your con- sideration. He does not presume in the slightest degree to say in any way what you should do, nor where you should ilo it, or how you should do it. He is quite content to leave this matter to your broad judgment. On the other hand, he does not in any wise contend that you should be circumscribed within your field of action. We leave this matter in your hands. The Arbitrator — I think I may do what I said before-:— 21 I take it that I have complete liberty in deciding for my own guidance how much of the evidence, and how many of the points raised on Either side are really relevant to the issue. Mr. Bro>ver — I take it so. The Arbitrator — And that I am not called upon to exclude any feature that may have been submitted to me, or might yet be submitted by either side, merely because some other Arbitrator may have had some matter under con- sideration from another point of view, and with reference to another dispute, Mr. Brower — Yes. Mr. Rouse — Doctor, I was going to aay The Arbitrator — I suppose what you had in mind, Mr. Rouse, was that there shall not be a Joint decision by all of the Arbitrators on all of these questions. In other words, that I shall mind my own business and the other Arbitrators shall mind their own business; but that we may seek whatever information we may require with regard to all of the points that are raised on either side, which we deem to be relevant to the particular issue that we are deciding. Mr. .Ronjse — We want you, Doctor, to have all of the facts at issue. We do not want to circumscribe your duties, nor your decision in any way, shape or form; but we do object to the suggestion made by the opponents, that all of the Arbitrators consult. Now, we may as well be frank with you. These gentle- men know our position. They have made suggestions that a sealed verdict on all of these things be rendered. We know that we object to that. We have tried to get our case adjudicated weeks and weeks ago, and we have done every- thing that we could to help these gentlemen, by way of suggestion, by way of thought, and everything — all that we coT^ld possibly do. When they make statements such as they have here to- day about this, they know that we would object to them. We know that our contract calls for a certain procedure. We know that we selected you. We know that our case should be placed in your hands, and it has no bearing with the other cases, whatsoever. The men that are in those other organizations are competent to take care of their cases, and handle their cases. STacb organization speaks for itself. ** Now, then, to point out a parallel: This organization that you have before you is entirely different from all of the other organizations. We have in the City of New York, one Typographical Union, composed of compositors, and they do business with two Employers* Association, namely, the Employing Printers' Association, Closed Shop Division, Printers' league, and the Publishers' Association of the City of New York. We handle all of our afCairs the same way. Each scale negotiation with the Publishers* Association is conducted along the same lines as we are conducting these negotia- tions before you. Mr. Brower — ^The Publishers being the newspaper pub- lishers? The Arbitrator — Yes, I rather assumed that. Mr, Oppenheimer — They dlso have these other trades. Mr, Rouse — They also have these other trades, Pressmen, Stereotypers, Electrotypers, Mailers, Photo-engravers, Paper handlers, — all of these crafts still have the same char- acteristics of controversy as we have before you; and ^et every one of those are adjudicated individually, and last spring, we had the proceedings that they have quoted be- fore you, which involved 2,500 of our members, doing the same class of work that is being done In the commercial shops, and incidentally, they are working threfe hours less than those working in the commercial shops; and to expect us to go counter to our procedure in all cases, and to ac- cept a suggestion of that kind, why, it would be entirely out of line with everything that has ever been done. We are ready, and always have been ready and willing to co-operate, providing that they allow us to co-operate; but I am sorry to say that they have not allowed us to do it in the past. Mr. Douglas — Doctor, there is just one point I would like to direct your attention to, and it is this: That all of the men employed in the composing rooms of the City of New York come in under our jurisdiction. Now, it is entirely different with the rest of the or- ganizations. They are broken up into component parts, into Unions; for instance, we will take the Printing Pressmen's Union. They have a Union of Cylinder Pressmen; also also they have the Union of Cylinder Feeders. They are all under the same International, but they act independ- ently; but with regard to the composing room, we control every man in the composing room, no matter what he does. Mr. Rouse — An entirely diflCerent organization Inter- national and National. Mr. Douglas — Take the Bindery; it is broken. up iuto the Bindery Women's Union, the Book Binders' Union, the Paper Cutters' Union, all having distinct locals, and con- tracts with these people. The Arbitrator — May I ask for information, to what ex- tent your organization Is aflflliated with these others? Mr. Doijglas — No aflBliation whatever. The Arbitrator — No more than you are with the Garment Makers, for instance? Mr. Douglas — None, The only affiliation that we have in the organizations in the City of New York in the printing industry, is in relation J;o the Allied Printing Label. Mr. Rouse— The Union label. . , ^ Mr. Douglas— That is the only thing, referred to as the Allied Printing Trade Council; that Council has no juris- diction over wages; has nothing to do with working con- ditions, or anything of that description. All it is con- cerned in. is the issuing of a label. All organizations must report an office O. K. to get permission from them to issue that label; and that is the only relation we bear to one another. , ^, ^, Mr. Rouse — We have no craft relationship, such as the adjusting of wage disputes, or questions of that character, whatsoever. The only way we are Inter-related is with regard to this label, so that every piece of printing that bears the label is known to have been done by Union men. Our organization is entirely separate and distinct; and those Unions that they speak of today are split up in locals; four locals in o;ie International Union In this City. For instance, the International Pressmen and Assistants' Union. We are members of an International Union, but they split up into different units; and It cannot be done in our instance, because you can not mean printers when you are talking about paper handling. You can not divide them up. It Is too complicated. Mr Brower — ^When you talked about the feeders, who' were getting an award of $6.00 a week from the War Labor Board, it was deemed quite open then to talk about printers who were awarded only $3.60, was it not? Mr. Rouse — I do not want these remarks to go on the record. (Discussion off the record.) The Arbitrator — I do not believe that is a question that is likely to come before me for decision. That being so, I am disposed to ask whether it is necessary or de- sirable for us to take any further action today. As Mr. Brower suggested, I suppose It would be Impossible now to fix a date when we could meet, or even approximately when we could meet for the further hearings. I can say that I have no reason to believe that I shall not be available at any time In the near future. Mr. Rouse — That is very nice. Mr. Brower — Yes. The Arbitrator — And the danger of my going abroad is, to my very great regret, dissipated. The word "dissipated" has rather a propriety when one goes abroad in these days (laughter) ; and that as far as I can see now, I shall be available at any time in the neay future. Mr. Rouse — Can we approximate through you, Mr. Chair- man, about how soon we can meet with Mr. Brower? Mr. Brower — Your suggestion of a week or ten days, in view of the time the stenographer would take, I thought was approximately right. I cannot add anything more definite than that. Mr. Oppenheimer — ^We cannot do it. You have enough stuff in that Brief of yours to settle the fate of the Na- tion, let alone the scale of No. 6; and for us to go through it,^ — the Doctor will realize what It means to go through that grossly voluminous document, as I would call It. Mr, Brower — How long do you think you would like? Mr. Douglas — It must have taken you six months or more to get that together, and to want us to go over it In ten days — we require three weeks at the very least. The Arbitrator — Suppose we leave that an open ques- tion? Mr. Brower — For your information, Mr. Silcox remarks that it was gotten together in two weeks, and you may compliment him. "Mr. Rouse — For our side, I want to say this: That after listening to their brief and the voluminous docu- ments that they have there, when we suggested and accepted your name we did not intend to offer to submit you to capital punishment. The Arbitrator — Formal punishment does not matter so much, as long as it is not long drawn out, and the per- son has opportunities to recuperate between lines. In- cidentally, I am going to have a long repose here, during which I may have to do nothing but commit Mr. Silcox's Brief to memory. (Laughter.) It Is all in your hands, gentlemen. If you think it is better to leave the ques- tion open, as to our next meeting, let us leave it open. Mr. Oppenheimer — I think that Is the best way. The Arbitrator — I think it is safe to assume that neither party will linger over the preparation of the rebuttal ma- terial, and that you are both equally concerned to get the matter settled as quickly as possible. Mr. Brower — Yes. Mr, Rouse — Could we get this agreement with you, Mr. Brower? Are these for us (referring to Brief and ex- hibits) ? Mr. Silcox — I was going to make this request, — that 1 will try and get this Brief to you tomorrow afternoon or the day after, but I want to get you every set men- tioned; and you will realize some of those things have to be duplicated by the printers and other processes, and I have got to get one or two editions of those magazine slis, to get the complete record. When I get this set complete, I will turn over this set to you, Mr. Arbitrator, and a duplicate set to the other side. Mr. Rouse — After we have gone through and prepared our rebuttal argument, I will notify you, and you think you can he ready upon notification, do rou, Mr Brower? A.f^iJr'^^Tj .^° ?»* ^'"'^- I cannot aiswer qultl so definitely as that. I suggest that the first one that is ready to take it up, communicate Immediately with the other, and confer, and do what we can to get together and^ confer with the Doctor for a mutual^ ^atistlctor" Mr. Rouse — Yes. .. f'^U Grower— I cannot see I can do anything more **M,"^n!^'"-„*^''*' "S,? ^ ""> "">* "elieve yon can^ Mr. Oppenheimei^That is good enough I*e Arbitrator— In the meantime I shall be furnished with your Brief as I have already been furnished witt a copy of the ITnlon'B Brief? '"i=ueu wira Mr, Brower — Yes. „„^* Arbitrator— And then I will be furnished with a which were%e"ad".''' ''""" """ '""o'PO'ate the Briefs Mr. Brower-Wlth amplifications that I have made from time to time and of course, it will contain the part that I stated orally about that zone. The Arbitrator — Exactly. T^^L.^Z^'ur^ think we ought to have an understanding, fhree Weeks '°"*' "'"^"- ^""P"" ^^ "^ree on Mr. Brower-I will agree to that. If we can get ready sooner, we will. ic,iuj Mr. Rouse — That is, three weeks is the limit, and sooner if possible. Mr. Browei^Each side is to be ready within three weeks, and if not, they go to the bat with something missing. Mr. Rouse— If it was a matter of a day of two on either side, we would not quibble about that. Mr. Brower — No. Mr. Rouse — This matter has run on so long xt*'^'j,.^''°^''^~®*'='' *'*« *^ expected to be ready within the three weeks' period. Mr. House— And sooner, if .possible: as soon as we are prepared, we will let you know. Mr. Brower — We will, I can assure you. Mr. Rouse— Of course, you have no rebuttal for us because we have not presented so much. ' Mr. Oppenheimer— We will leave out the clothins cutters. - * The Arbitrator — You have made the thing clearer by the fact that it is agreed on both sides that every effort will be made to be ready for the rebuttal within three weeks from this date. Mr. Rouse — Or earlier, if possible. (Whereupon, at 5:30 o'clock p. ra., on November 9th 1920, the further hearing of the Arbitration was adjourned subject to call by the' parties.) REBUTTAL Met pursuant to call, at Room 321, Pennsylvania Hotel New York City, Novefnber 30, 1920, at 10:00 a. m Appearances : For the Printers' League and Employing Printers- w^^V-^- ^- Blower, President, Mr. Albert O. JenniiKs. Mr. M. F. Hurley, Mr. G. J. Anderson, Managing Direc- tor Printers' League, Mr. F. A. Silcox. For Typographical Union No. 6: Mr. Leon H. Rouse, President; Mr. John S. O'Connell Secretary; Mr. Theodore F'. Douglas, Organizer; Mr! William Robinson, Mr. Walter McCoy. Mr Louis Fischer, Mr. Alexander Traehtenberg, Mr. S Oppen- heimer. The Arbitrator (Dr. Kirchwey) called the arbitration to order at 11:00 o'clock a. m. Dr. Kirchwey— Mr. Brower, how fully are you represented here? Mr. Brower— Four representatives. Mr. Silcox will be here. Mr. Rouse— Do you want to wait for Mr. Silcox? Mr. Brower— He will be right down. I thought he was following me immediately. Dr. Kirchwey — Gentlemen, I am advised that both sides are now ready to proceed. Are the appearances the same as at the previous meeting, the same persons representing the two parties in interest? Mr. Brower — I am not sure that our appearances are exactly the same in that respect, those that are here other than myself are members of the -Oommittee, and the sten- ographer knows them and has them down. Dr. Kirchwey — Mr. Stenographer, you have noted the ap- pearances for the day? The Stenographer — Yes. Dr. Kirchwey — The business before the meeting is the briefs and arguments in rebuttal. We will hear from Mr. Rouse first. Mr. Rouse (reading) : Dr. George W. Kirchwey, Arbitrator. Dear Sir: Before proceeding with our argument in rebuttal, we would respectfully call your attention to the reference of the employers relative to our alleged omission of any data on the economic conditions of the industry. It must be obvious that most of the data necessary for any accurate deduction as to the economic condition of the industry can be SECURED ONLY FROM THE BOOKS OF THE EMPLOYERS AND PUBLISHERS, to which we have no access. It was necessary, therefore, before submitting what data we were able to secure, that we defer producing same until our rebuttal of the employers' arguments. The disadvantages to which we are subject, relative to data on the economic condition of the industry, must be apparent when it is realized that we have no access to the books of our employers, nor have we had the privilege of scrutinizing ^uch books. And right here we wish to submit, without any aspersions as to the honesty and integrity of our adversaries, that without proper scrutiny of the books of the industry all statements relative thereto can at best be but speculative. We wish to call the attention of the Arbitrator, also at this time, as bearing on the above, that we have no control whatsoever over the industry in which we are engaged. On the other hand, the cost of living figures are acces- sible to employer and employee alike. The data on the coat of living submitted by the union are gleaned from two sourr'es, the government publications and special investiga- tion, both of these sources open to our adversaries. The data on economic condition of the industry, however, are a different proposition, because the key to that situation is held by the employers, and by them alone, and is in no wise accessible to us. Also at this time, we wish to call the particular attention of the Arbitrator to evidence submitted by the employers in the form of answers to questionnaires sent out among their membership, bearing on the economic condition of the industry. Naturally these employers were fully cognizant as to what use these questionnaires were to be put, and equally natural it is that these answers are more or less biased. And again we say that unless the employers pro- duce their books for verification, such testimony should be disregarded. And we say, also, that any and all testimony not bearing directly upon the issue before you, or such testimony not subject to proof, should be disregarded. Later on we shall endeavor to prove to you, M^. Arbitra- tor, as we believe we have succeeded in provinig to our own satisfaction, that a great mass of the testimony submitted by the employers should be considered only on submission of their books for proper scrutiny. It is our purpose to endeavor to convince you, Mr. Ar- bitrator, that any and all data in the form of argument, statistics and exhibits ^relating to the general economic condition of industry are Irrelevant and should not be con- sidered as testimony bearing on this controversy. ' We claim and we know that the contract entered into by the employers and ourselves calls for an adjustment of wages based on the increased cost of living and the econ- omic condition of the industry. The contract, in part, is as follows: " * * * such readjustment to be based upoff the In- creased cost of living and the economic condition at the date of adjustment." The contract, in toto, is in your possession as an exhibit and it would" therefore be superfluous for us to quote It Ifa its entirety. The part quoted is the point at issue here now. "Economic conditions of the industry." *'At the date of adjustment." The contract is not ambiguous. It is definite, certain and ascertainable, and admits of no interpretation. "The Industry." We contend, and we believe it cannot be successfully denied, that it is impossible to Justly place any construc- tion upon the language of that contract other than that it refers to the printing industry. We contend, therefore, that despite all the sophistry sub- mitted by the employers relative to economic conditions, all evidence not bearing upon the printing industry shoud have no weight and should not be considered in this controversy. We submit, also, that all evidence, whether in the form of oral or written argument, statistics, or charts, submitted to the Arbitrator, should be absolutely accurate and admit of no successful contradiction. On page 99 of the stenographer's report Mr. Brower says: "These various unions working in the same shops with 23 Typographical Union No. 6 are associated together in what is known as the New York Allied Printing Trades Council, through which organization they take up matters of common interest. They are also associated through their interna- tional organizations into an Allied Printing Trades group." That statement is positively incorrect. Only one matter of common interest is taken up in the New York Allied Printing Trades Council. The only matters coming before that body are those matters afCecting the union label, ^e questions of scale, hours, working conditions, discbarges, etc., affecting the various unions composing the Allied Print- ing Trades Council are adjudicated between each union, separately, and the employers. The Allied Printing Trades Council has no jurisdiction whatsoever over these matters, nor the policy of the separate organizations. The Jat>el — aiid that only — is the concern of the Allied Printing Trades Council. On page 101 of the stenographer's report, Mr. Brower, quoting from a speech he made at a joint meeting of allied unions on September 23, 1920, says: "This is definitely recognized from the fact that the com- mon interests of both employers and employees are consid- ered through central organizations, for the unions, the Allied Printing Trades Council," etc. Notwithstanding the fact that Mr. Brower made such a statement at that time, it was no more correct then than it is now. On page 104, stenographer's report, and page 7, Em- ployers' Brief, the employers quote the Amalgamated Cloth- ing Workers of America to show that adjustments of wage disputes are made by some unions for the various crafts rather than separately as in the case of the printing indus- try in New York. The union does not propose to go outside of its ranks, as the employers do, when they interpret the economic conditions of the industry to mean the economic conditions of all industries., In connection with the question of a single wage adjustment for all crafts in the printing industry, the Amalgamated is not a case in point, since that udion endeavors to obtain a decent standard of living for all workers engaged in the clothing Industry who happen to belong to the same union, while in our case the jurisdiction of our union extends only over those in the printing industry who belong to our organization. "Had there been one union in the printing industry and the compositors decided to negotiate for an increase of wages of their particular craft, disregarding all other crafts, the argument of the employers would have been in place. On page 102, stenographer's report, the representative for the employers has this to say: "The significant fact in all of this is that the industry on January 1, 1920, carried on the basis of all crafts, a weighted average increase over 1914 of 113.33 per cent., the percentage of increase varying from 84 per cent, in the case of Typographical Union No. 6 to 175 per cent. in the case of Bindery Women's Union No. 43." We respectfully ask the Arbitrator to pause at that para- graph, and, if not presuming too much, to please read it ov^r again. This is one of the most ingenious attempts at camouflage it has ever been our privilege to witness. In the first place, we wish to deny, and deny most em- phatically, that the so-called ?4 per cent, awarded us as of January 1, 1920, was the result of computation on the basis of a weighted average. The inference is plain, in fact, one may say it is a bald statement, that the increase in scale granted the book and job printers on January 1, 1920, was the result of computa- tion on the basis of a weighted average. Nothing could be further from the truth. The facts are as follows: The contract we are at present working under, the one referred to above, was agreed to between the employers and Typographical Union No. 6, on January 16, 1920. At that time the only available Government figures on the cost of living showed S3.1 per cent. It wa" on this basis of 83.1 per cent., the Government figures obtainable at that time, that the settlement was made, and not, as our adversaries now tell you, a weighted average. We introduce at this time Union's Rebuttal ESchibit No. 1, page 98, verifying our statement. Dr. Kirchwey — Tlie Monthly Labor Review. Mr. Rouse — The Monthly Labor Review, January 1, 1920, verifying our statements. As still verifying our statements, we submit an extract from the speech of William Green at the first annual meet- ing of the National Publishers Association, held at the Waldorf-Astoria, New York, in August last. Mr. William Green, at the time of the settlement of January 1. 1920, was Chairman of the Committee of Employers conducting those negotiations, the position occupied by Mr. Brower in the present negotiations. Mr. Green said: "At the close of the strike last year it was agreed that there should be a readjustment of wages based upon the cost of living October 1, 1920, as determined by acknowledged authorities. As a matter of fact the settlement that was made last winter was baaed on an increase in cost of living over 1914, of S4 and some hundredths per cent. Since that time the cost of living has kept on climbing, the last report publishing it at around 104 per cent., making an increase practically of 20 per cent, over what it was last winter. The settlement this fall will be a matter of mathematics and not a strike." Rebuttal Exhibit No. 2. Mr. Brower — Of what? Mr. Rouse— "Advertising and Selling, September 4, 1920." Dr. Kirchwey — Advertising and Selling is the periodical, September 4, 1920, pages 35 and 36. Mr. Rouse— We repeat, and we will testify to these state- ments under oath, besides being corroborated by testimony submitted, that the question of a weighted average never entered into the negotiations between the employers and our- selves last January. The settlement was consummated be- tween the employers and Typographical Union No. 6 alone, separate and distinct, and was based on the cost of living figures available at that time — 83.1 per cent. Later, on May 3, 1920, the United States Department of Labor, Bureau of Labor Statistics, Washington, published a series of tables covering 14 specified cities, showing the total increase in the cost of living from December, 1914, to De- cember, 1919. (Rebuttal Exhibit No. 3.) This report shows that in New Y'ork, in December, 1919, the cost of living had increased 103.81 per cent. The union at this time introduces Rebuttal Exhibit No. 3, United States Department of Labor leaflet, released May 3, 1920. At this point. Dr. Kirch- wey, I want to call your particular attention to this chart that the counsel for the employers so dramatically referred to in the proceedings herein. You will note that that shows 103.81 per cent, there (indicating) In December, 1919. They have drawn two red lines down here, signifying December to October; but when you see this 103.81 per cent., by the leaflet that I have presented to you, that information was not disclosed by the Government until May 3, 1920; 'and the employers say nothing about that, leav- ing you to believe that that figure was available to them and to us, which was not, proving conclusively that our state, ment of 83.1 were the known figures at that time, and the other figures were not disclosed until May 3, confirmed by the speech of Mr. William Green. This fact is most important, and we respectfully request the Arbitrator's closest scrutiny on all data submitted by our adversaries in which they use the figure presenting the increased cost of living for January, 1920, because while the employers now use the percentage figures for January, which was not released until May 3, 1920, the figure rep- resenting the basis of the last settlement, the only figure for January then available, was 83.1 per cent. Henca it is obvious that the book and Job printers have been burdened with the loss, since January 1, 1920, of the difference between 63.1 per cent, and 103.81 per cent. Later on we shall refer again to this cost of living figure, as published in the Monthly Labor Review of January 1, 1920 — 83.1 per cent. — the only figures available at that time. Employers' Exhibit A-S, referred to by them In connec- tion with the foregoing, was seemingly prepared to give a clean bill of health to the employers. The array of per- centage increases granted to the various crafts in the printing industry between 1914 and 1920 Is highly interest- ing, but to our mind fails to produce the intended effect. Of course, it is perfectly legitimate for the employers to present a picture of the industry by showing the In- creases granted the various groups of workers, but when the matter under consideration concerns a certain group of workers who claim that their present earnings do not pro- vide them with a decent and comfortable livelihood, the high percentage increases granted to various other classes of workers does not aid them. Similarly, high percentage increases do not tell the complete story. If the bindery women were earning in 1914 ten dollars a week and their wages have been increased 175 per cent., their present earnings amount to the munificent sum of $27.50. The compositors are credited with an average increase of 84 per cent. This figure was way behind the actual percent- age increase in the cost of living at the date of the last increase and has since been further outstripped by the sub- sequent increases in the cost of living. If a worker was underpaid in 1914, a high percentage increase does not suffice to bring his scale up to a point which would allow him to not only maintain his previous standards, but to meet constantly mounting living costs. Thus, according to the exhibit referred to above, the compositors received in January, 1920, an increase which brought their wage rate 84 per cent, higher than the 1914 rate. At the time when this increase was granted, the scale of the compositors should have been advanced 104 per cent, over 1914, as the cost of living during this period of five years had risen that much. The compositors, therefore, instead of being allowed to improve their standards of living, were forced to retrench, since the purchasing power of their weekly wage was com- paratively lower in January, 1920, thao in January, 1914. In other words, the printer's family bad to deny itself goods and services in 1920 which it was able to obtain on the earnings of its breadwinner in 1914, It Is to rectify the perennial wrong committed against the compositors that the present readjustment of the wage scales is asked for. Evidence submitted in our first brief proves conclusively 24 iofiL ,f \ ! '""T* srantea to the printers since 1914 S.lt JL ^H*' "" compensation of the workers to the hJ fi J^ .K, * r """l" ""'"fin tHeir standards of living W being able to meet the increases in the cost of livine The last Increase on the basis of which our members a« still employed failed by 20 per cent, to bring their wage scales to a point where tiey would be commensurate with the Increased cost of living. The purchasing power of the dollar has declined further since January, 1920, and if the family budget of a printer is not to be allowed to slip below the subsistence minimum, a substantial increase In the prevailing scales must be made. In the table (Employers' Exhibit A-8) where comparative scales and Increases in the book and ' job Industry are shown, an attempt is made to show that comparatively the compositors received a larger increase than the other crafts. This is done by computing a weighted average for all percentage increases. Thus, it is shown that while the compositor received an increase of 27.93 per cent the workers of the Pressmen's Union No. 51 received 11 91 per cent. It certainly is not fair to take into consideration the number of workers in the various crafts in this con- nection. The fortune of the individual printer's family Is in no way advanced because there happens to be a larger number of compositors than there are pressmen. On stenographer's report, page 7, Employers' ' Brief , page 104-lOS, Mr. Brower says: "The New York printing trades union have not only one nothing to meet these problems constructively, but endeavor, as in the case in point of Typographical Union No. 6, to stand as isolated unions— a law unto themselves." Inasmuch as this quotation is repeated later on page 117, stenographer's report, we shall defer comment until we arrive at the latter page. On page 109, stenographer's report (pages 10-12 Em- ployers' Brief), the employers say: "Sub-division B, eco- nomic conditions of the Industry is defined to mean the general economic conditions of the country and the economic conditions of the printing Industry in particular This phrase cannot be defined in a narrow, technical sense as applying only to the printing industry," etc. We dissent most strenuously to any such reasoning as applied to this contract. We know, and the employers know, that when reference to the "economic conditions of the industry" was Inserted in the agreement, it had refer- ence only to the economic conditions of the printing In- dustry. As we saU before, the contract is not ambiguous. It Is definite, certain and ascertainable and admits of no inter- pretation. We are a body of printers dealing with a body of employing printers, all actively engaged in the printing industry. We ask you, Mr. Arbitrator, is it at all reasonable to suppose that a contract written as concisely and precisely as the one submitted to you by printers on both sides, In referring to the industry, would refer to any but the print- ing industry? Of course, it Is perfectly apparent why the employers should, at this time, wish to interpret the contract in the manner they do. The employers realized that while we might be in a position to confound their statements of the economic conditions of the industry, we were in no such advantageous position to discuss the general economic conditions. And hence it is that they have flooded their brief with extraneous discussions on the general economic conditions rather than limiting themselves to the real point at issue, the economic condition of the industry — the printing in- dustry. And so we again say, at this time, that all reference to economic conditions other than that relating to the printing industry should have no weight In these proceedings. On page 111, stenographer's report, we find: "No. 2. The award mutually agreed to be retroactive, effective October 1, 1920." The employers tell you, Mr. Arbitrator, that the economic conditions of the Industry will not admit of any increase In wage. Yet they admit that the award shall be retro- active. You are told by the employers that their business will not admit of any further Increase in the wage scale for printers. We ask you, Mr. Arbitrator, how much credence can you place in any such statement when we Inform you (and we refer you to the employers for verification) that the employers had made an offer to Typographical Union No. 6 of an Increase of $4.00. Is It at all reasonable to suppose that an industry, the economic condition of which will admit of no Increase whatsoever, will, nevertheless, propose an increase of four dollars? In addition to this, a survey among the book and Job printers in New York City was undertaken by Typographi- cal Union No. 6 to ascertain the distribution of the various crafts in the day and night shifts, according to wage rates. Questionnaires were sent to the various chapels for dis- tribution among the members of the union. 'Two hundred and fifty-five of these were returned with complete infor- mation, which forms the basis for the results set forth in the following pages. The aggregate number of workers covered In the day shift Is 2,854, and in thei night shift 609. making a sum total of 3,463 workers in the various crafts. I PART I— DAY SHIFT. Table A shows the percentage relation between each of the different crafts and the total number of workers in all crafts combined. Thus, the stone-hands constitute 12 per cent, of the total number of workers in the day shift; the proofreaders, 11 per cent.; the fioormen, 53 per cent.; the operators, 21 per cent.; and the machine-tenders, 3 per cent. ^ Table I Is an analysis of the distribution of stone-hands according to wage rates. This analysis reveals that out of 668 workers (12 per cent, of the total number) 210 or 61 per cent, were receiving between $45.00 and $47.00 per week; that 291 or 85 per cent, of the workers in this craft were receiving between $45.00 and $50.00 a week. The remaining 15 per cent, earned between $51.00 and $60.00 a week. I Table II similarly sets forth the wage rates prevailing for proofreaders, who total 306, or 11 per cent, of the total number of workers in the day shift. Here 72 per cent., or 223 out of 306 workers, were earning between $45.00 and $47.00 per week, while 93 per cent., or 287 workers, were receiving between $45.00 and $50.00 per week, leaving a balance of 7 per cent. (19 workers) who earned upwards of $50.00 per week. Table III discloses the wage rates which were in effect among the flooiiAen, who constitute 53 per cent, of all of the workers. Here 65 per cent., or 990 out of a total of 1,509 workers, were receiving $45.00 per week; 86 per cent. (1,301 workers) were earning between $45.00 and $47.00; 192 workers, or 12 per cent., earned between $48.00 and $50.00 per week, and two per cent. (16 workers) were earn- ing between $51.00 and $60.00 per week. Table IV treats the wage rates of operators, who form 21 per cent, of the total number of workers In the day shift. According to this table, 42 per cent., or 264 workers, earned betwee'n $45.00 and $49.00 per week; 25 per cent., or 152 workers, were receiving $50.00 per week; 26 per cent, (or 148 workers) received between $51.00 and $55 per week, and the remainder, 7 per cent. (42 workers), earned from $56.00 to $60.00 per week. Table V covers the machine-tenders, who form 3 per cent, of the total number of workers. It will be observed from this table 26 per cent. (25 workers) earned between $45.00 and $49.00 per week; 21 per cent. (20 workers) earned $60.00 per week; 36 per cent. (32 workers) were receiving between $51.00 and $55.00 per week, and the balance, 17 per cent. (17 workers), earned between $56.00 and $65.00 per week. Table VI is a summary of all crafts, with the percentaEe distribution of the wage rates covering all five crafts under consideration. Prom this table it can be seen that out of a total of 2,S54 workers In the day shift, 1,291, or 45 per cent., were earn- ing $45.00 per week; 65 per cent., or 1,882 workers, wfte earning between $45.00 and $47.00 per week. It will further be observed that 88 per cent. (2,532) of all the workers were earning between $45.00 and $50.00 a week. The remaining 12 per cent, shows 9 per cent, receiving be- tween $51.00 and $55.00, and 3 per cent, receiving wages ranging from $56.00 to $65.00 per week. This summary is significant evidence of tlie fact that nearly half of the workers (45 per cent.) were receiving a stipend of $45.00 per week, and that the vast majority of the workers (88 per cent.) were earning between $45.00 and $50.00 a week. PART II— NIGHT SHIFT. Table B shows the percentage relation between each of the dii^erent crafts and the total number of workers in all crafts combined. Thus, the stone-hands constitute 8 per cent, of the total number of workers in the night shift; the proofreaders, 9 per cent.; the fioormen, 45 per cent.; the operators, 34 per cent., and the machine- tenders, 4 per cent. Table VII gives in detail the distribution of stone-bands (8 per cent, of the total number of workers in the night shift) according to wage rates. This discloses that 35 per cent. (17 workers) were receiving $48.00 per week; 81 per cent. (39 workers) were receiving between $48.00 and $50.00 per week, and the remaining 19 per cent. (9 workers) scat- tered between $61.00 and $55.00. Table VIII shows the distribution of proofreaders accord- ing to wage rates. These workers represent 9 per cent, of the total number of workers in the night shift. These figures indicate that 62 per cent. (34 workers) were receiv- ing a weekly compensation of between $48.00 and $50.00; 20 per cent. (11 workers) were earning $51.00 per week, and the balance of IS per cent. (9 workers) are distributed between the $52.00 and $55.00 wage rate. Table IX is an analysis of the distribution of the wage rates of fioormen, who constitute 45 per cent, of the total number of workers in the night shift. Here 41 per cent., or 114 workers, earn $48.00 per week; 78 per cent. (215 workers) earn between $48.00 and $50.00 per week; 4 per cent, of the fioormen earn more than $63.00 per week. Table X sets forth the distribution of the wage rate among operators, who represent 34 per cent, of the total number of workers In the night shift. Here IS per cent. (39 workers) earn between $4f.00 and $50.00 a week, and 23 per cent. (47 workers) earn $51.00 per week. 85 per 25 cent. (179 workers) receive a remuneration of between $48.00 and $55.00 pervweek, and we find 15 per cent, of the operators (30 workers) earning between $57.00 and $60.00 per week. Table XI, which gives the distribution of the wage rates of machine-tenders (4 per cent, of the total number of workers in the night shift) reveals that none of these workers earned less than $50.00 per week. 74 per cent. (18 workers) earned between $50.00 and $55.00 and, the remain- ing 26 per cent. (6 workers) earned between $56.00 and $60.00 per week. Table XII is a summary of all the crafts, with the per- centage distribution of the wage rates covering all the five crafts under consideration. It is interesting to note that 52 per cent. (329) or more than half of the workers in the night shift were earning between $48.00 and $50.00 per week. 91 per cent. (571 workers) of all the workers were earning between $48.00 and $55.00, with 9 per cent. (38 workers) rising beyond the $55.00 rate. Doctor, just to mention the word "craft," the craft in our industry. We have jurisdiction over all men in the composing room. A man is a printer and an operator and a proofreader and a stone-hand. They are printers first, and then they all work in these various branches of the industry itself, so far as printers are concerned. For instance, to demonstrate just what I mean, my col- league here, Mr. Oppenheimer, is a member of our or- ganization. He is a linotype operator. He is a proofreader and he is a hand compositor, following all three of them; does all that kind of work in one composing room, so that we are represented by men in the various parts of the com- posing room. Dr. Kirchwe^ — I did infer that from your original brief. Mr. Bouse (reading) : 'Table XIII is a complete alphabetical list of the shops investigated. By combining the results of the calculations in regard to the earnings of the day-shift men, it was found that 1,563 out of a total of 2,854 workers, or 55 per cent., are receiving wages above the scale, which is $45.00. Similarly in the case of the night-shift men, we find that 452 out of a total of 309 workers, or 76 per cent. , were receiving wages above the scale, which is $48.00. By taking a weighted average for both day and night shifts, it is found that 59 per cent, of the workers, which is numerically 2,015 out of a total of 3,563 workers, were receiving wages above their respective scales of $45.00 for the day men and $48.00 for the night men. I am omitting reading the tables. (All tables submitted to Arbitrator.) Dr. Kirchwey — You have a table here extending from pages 39 to 54, alphabetical list of shops' investigated. What is the meaning of the term "investigated" there? Mr. Rouse — That is bow the shops that sent in replies to questionnaires were listed. Dr. I Kirchwey — Upon which these preceding tables are based ? Mr. Rouse — Yes, sir. These questionnaires are available to the Arbitrator for the employers, if they desire. Dr. Kirchwey — May I ask one question in elucidation of these tables? Upon what basis do the actual wages of the men run higher than the wage scale; is the compensation in part based on the piecework principle? Mr. Rouse — No piecework is tolerated. Dr. Kirchwey — Then how do the same men in the same category or craft receive more and some less? Mr. Rouse — Because of their extra capabilities. Dr. Kirchwey — In other words, the employer has the privilege, has he. of paying more than the wage rate to some of the men? Mr. Rouse — Mr. Jennings, for instance — one of the gen- tlemen sitting here, I believe, is paying only four men the minimum scale at the present time. Mr. Jennings — We pay the premium wage for premium output. Blr. Bouse — I believe be is only paying four men in the establishment $45.00, and seven men $55.00 per week, $10.00 over the scale. Dr. Kirchwey — May I ask what the increased wage is based on — your estimate of the eflSciency of the individual, and is it a matter of contract with the individual personally, in each case, if he gets more than the wage scale? Mr. Jennings — It entirely depends on his proficiency. Dr. Kirchwey — Then the wage scale is in the nature of the minimum wage? Mr. Jennings — Minimum scale. Dr. Kirchwey — In each one of the crafts represented. Mr. Rouse — When we use the word "craft," they are all based — Dr. Kirchwey — I understand you use the word "craft" now of the subdivisions among the men working in the composing room? Mr. Oppenheimer — That is the idea. Dr. Kirchwey — They have the same wage scale, and that scale is a minimum wage. Mr. Rouse — A minimum wage. Dr. Kirchwey — Which may be exceeded by personal rela- tions or agreements between the employer and employee. Mr. Bouse — Yes. The point that we bring to you, Dr. Kirchwey, is simply this: The employers contend that they are not able to pay; a very clear demonstration is given by one of their representatives, Mr. Jennings, who has only four iaen in his employ i;hat receive the minimum wage of $45.00. To seven other men be is paying $55.00 a week, or $10.00 above the minimum scale, and then they contend that, they cannot afford to pay any increase; that they cannot afford to pay. How is It they are paying $55.00 to our workers, which is above the minimum at the present time? This is a very effective argument in favor of the union to show that the industry is in a very pros- perous condition. Dr. Kirchwey — Will you please make a note of that, Mr. Brower. Mr. Brower — 1 will — and still they want more. Mr. Rouse (reading) — On page 111 we find reference to the general economic condition, with a concluding sentence in the paragraph be- ginning: "No. 5, in view of the fact that the cost of living is now declining." We object, as stated before, to any consideration being given to economic conditions other than those of the printing industry. And as to the cost of living declining, we shall have more to say thereon later. We do not admit that there is any marked decline in the cost of living at present and the future is purely specula- tive. Some articles of food have declined to some extent, while other articles of food are higher now than they ever were. In this connection we refer to a statement issued by IDthelbert Stewart, United States Commissioner of Labor Statistics, at Washington, on November 22, 1920: "Slight reductions in the price of single articles of food have very little effect upon the cost of living to the aver- age wage earner," was a statement made by Mr. Ethel- bert Stewart, United States Commissioner of liabor Statis- tics, today, as a general reply to the numerous inquiries that come to him as to the effect of certain price reduc- tions. '.'There was a drop of one cent in the price of a loaf of bread in New York the other day," said Mr. Stewart, "that is, the price fell from ten cents to nine cents per loaf. Now let us see what this much heralded reduction in the cost of living really means to the average worker with a family of five. On the basis of October, 1920, prices the total annual cost of the food items carried by the Bureau of Labor Statistics would be to an average family in the United States $682.57. If bread were to drop one cent a pound this would make a difference of $2.25 per year or one-third of one per cent, of his total food expenditure. "When milk drops one cent a quart It me!»ns $3.55 per year to the average family or 52/100 of one per cent. A drop of one cent per pound in the price of fiour saves the average family but $4.54 or 77/100 of one per cent, of his food cost based on October prices. "Sugar may fall a cent a pound and the average family saves $2.69 a year, or 39/100 of one per cent, of the total food cost. A decline of one cent per pound in the actual retail price of sirloin steak means but $0.70 a year to the average workman's family, though a similar reduction in pork chops would mean $1.14 a year or 17/100 of one per cent. Butter might decline, if It ever should decline, one cent a pound and advantage the average workman only to the extent of $1.17 per year. A drop of one cent a dozen in eggs would mean $0.85 a year, of a cent a pound on lard would mean $0.84 per year, in each case only 12/100 of one per cent. A drop of one cent a pound In bacon means $0.55 a year to the average family or 8/100 of one per cent. For coffee to decline one cent a pound means $0.47 a year. In the case of rice it would mean $0.25 a year, tea $0.11 a year, cheese $0.16 a year, and the per- centage of total cost of these things becomes almost too small for the human mind to grasp. To be sure, if pota- toes dropped one cent a pound, which means $0.60 a bushel, the average workman would feel it to the extent of $8.82 a year, which after all is but 1-29/100 per cent, of his total food costs." Continuing, Mr. Stewart said: "The cost of living as represented by food prices increased by leaps and bounds and simultaneously along the entire line of products, so that when the average cost of food to the workman began to go up it went up with extreme rapidity, and reached what seemed and was to the average wage earner an enor- mous sum. The decline in prices so far has been compara- tively small, has affected for the most part articles that do not enter largely into the workman's total cost and may be more than offset by the unheralded increase in some other articles of food which proportionately affects him a great deal more. Certainly, we are all glad to see a drop in prices In any important articles of food, and all agree that every little helps. At the same time a great deal of caution should be observed in the attempts to project small reductions on a few or a single item Into the living costs, hence economic condition, of the workman's family." (Ex- hibit 4— U. S. Department of Labor Statement.) Dr. Kirchwey— This is quoted verbatim in your brief? Mr, Rouse — Correct. Mr. Silcox — I want the name of the circular. Mr. Rouse— On page 112 of the stenographer's report counsel for the employers directs particular attention to the graphic chart, Exhibit B-1. Counsel for employers says: "You will notice that there are two red lines drawn down there, that being the portion of this chart that covers this contract between January and October, and 26 sliowing that at the time of the inception of this contract practically all of those increased figures were on the rise We respectfully direct particular attention of the Ar- b trator, as counsel for the employers had done in a pre- vious session, to those two red lines We have shown by the Department of Labor Monthly labor Bureau Review of January 1, the only Iinown flgur'e at that time was 83.1. By the speech of Mr. Green cor- roborating our statement, and by that Department of Labor leaflet issued on May 3, 1920, exactly what we have explained previously— that the 103.81, which the employers used, was never released or known until May 3 1920 six luoutlis after the contract was drawn with the' emolovers in January. Mr. Rouse— We do not wish to imply that this chart or nuy of the other charts submitted by the employers 'has lieen drawn with the idea of attempting to deceive the Arbitrator, hut that- they may be apt to do so is unques- tioniible, unless you constantly bear in mind, as we have pointed out before, this all important fact, to wit: This chart, as well as otiiers submitted to yon by the employers, sliows the percentage increase in the cost of living for .Tauunry 1, 1920, which figures were not available until Ni.ny 3, 1920. Tliese charts, as submitted in this contro- versy, might lead the Arbitrator unwittingly to the as- sumption that the increase granted to Typographical Union No. 6 on January 1, 1920, which was supposed to be based on the increased cost of living figure furnished by the Government, was the figure shown in the chart. Such, liowever, as we have shown before, is not the fact. As liefore stated, tlie only available figures obtainable at the inception of this contract were 83.1 per cent, and that and that alone, was the basis of settlement. On page 113, stenographer's report, we find this: "9. Economic conditions are such that no wage increase at all is at the present time justified — the clothing indus- try had to face this unpleasant truth." You are told that the economic condition of the industry does not warrant the increase at the present time. To prove that statement, the employers quote extensively from the decisions of the Impartial chairman on Arbitration Boards in the Clothing Industry, when increases were de- nied, though admitted in all cases to be due to the workers. To compare the prevailing conditions in the printing indus- try—the industry with which we are at present concerned —and tlie clothing industry — is not only not scientific but very reckless. As the appended statement of the Amal- gamated Clothing Workers shows (Rebuttal Exhibit No. 5), the unemployment of the workers in the clothing industry is from 40 to 60 per cent. In Chicago; 75 per cent. In Rochester and Baltimore, and 80 per cent, in New York. Copy. Sidney Hillman, Gen. Pres. Joseph Schlesinger, Gen. Secy.-Treas. General Executive Board — August Bellanca, Hyman Blum- berg, Samuel Levin, Lazarus Marcovitz, Anzuino D. Marim- pietri, Abraham. Miller, Peter Monat, Sidney Rissman, Frank Rosenblum, Mamie Santera. Nathan Siegel, Stephen Skala, Thomas Uzarski — Amalgamated Clothing Workers of Amer- ica, 31 Union Square, N. Y. C. N. Y., Nov. 17, 1920. Mr. Alexander Trachtenberg, Director, Research Department, I. L. G. W. U., 31 Union Square, N. T. C. My dear Mr. Trachtenberg: In reply to your inquiry as to conditions in the men's clothing industry, I wish to inform you that there is an unusual amount of unemployment and part time employment at present. While no accurate statistics have been com- piled,' it has been estimated that fully £0 per cent, of the workers in New York, between 40 and 60 per cent, in Chicago, and 75 per cent, in Rochester and Baltimore are unemployed or on part time. The condition in the men's clothing industry cannot be considered as typical of industrial conditions generally. The amount of unemployment in the clothing industry is undoubtedly much greater than it is in other industries. This situation is probably due to the fact that the product of the clothing industry constitutes a fairly large proportion of the individual family's budget and is an item the family expenditure for which is more readily cut down when be- cause of an increase in bouse rent or bther living costs It becomes nfecessary to limit the family expenses to make ends meet. An increase in living costs and a consequent drop in the consumer's purchasing power is thus imme- diately felt in our industry. Yours very truly, H. X. HEBWITZ, Research Bureau. Mr. Rouse (reading) — What is the present unemployment in the printing in- iustry? According to the investigation conducted by a •epresentative of the New York State Department of Labor, :he unemployment as far as the members of the Typo- Sraphical Union are concerned is 2.6 per cent. (Rebuttal Sxhibit G.) (Copy) State of New York Department of Labor— State Industrial Commission, Capitol, Albany. New York OfBce, 124 East 28th Street. New York, November 10, 1920 Mr. Leon H. Rouse, President, Typographical Union No. 6, World Building, New York City. Dear Sir — Agreeably to your request of the 2d inst. I have examined the books and records in your office to ascer- tain the idleness of the members of Typographical Union No. 6 on September 30, 1920. The result of my investiga- tion is contained in the table submitted herewith. I have also quoted for your information statistics of idleness of this union from September, 1915, to June, 1916, inclusive. On the latter date this department discontinued the collec- tion of statistics from representative trade unions. All the statistics contained in the annexed table have been secured from the same source and on the same basis. Sincerely yours, PATRICK J. HONAN, Supervisor. (Copy) State of New York Department of Labor, State industrial Commission, Capitol, Albany. New York Office, 124 East 2Sth Street. New York, November 23, 1920. Mr. Leon H. Rouse, President, Typographical Union No. 6, World -Building, New York City. Dear Sir: I have completed an analysis of the chapel re- ports of Typographical Union No. 6 in so far as these re- ports show the idleness of the members -on April 30 and October 31, 1920. My report of November 9 la therefore amended to include these two months and I have pleasure in sending you herewith a copy of this amended report. Sincerely yours, PATRICK J. HONAN, Supervisor. (Copy) State of New Ydrk Department of Labor — State Industrial Commission, Capitol, Albany. New York Office, 124 E. 28th Street. New York, November 23, 1920. International Typographical Union No. 6, New York City. STATISTICS OF EMPLOYMENT Number of members B Number of members idle because of « « g «< .-^-a •o a Ip Date n ^S 51 rl 1915 ^z rs «£ a 2 cc « o September 7404 75 123 252 578 138 October 7425 75 125 258 685 121 November 7451 75 125 257 503 137 December 7484 75 125 240 449 124 1916 Tanuary 7481 75 125 238 435 131 February 7525 73 125 247 388 130 March 7537 75 125 247 412 141 April 7578 7S 125 250 393 136 May 7586 75 123 256 358 143 June 7593 75 123 252 382 14S 1920 A.pril 8943 100 20O 240 232 148 September 9041 100 200 241 276 155 October 9020 100 200 242 202 141 •Estimated. Statistics secured from records at office of union. PATRICK J. HONAN, Supervisor. RELATION BETWEEN AVERAGE MEMBERSHIP IN 1915, '1916 AND 1920, AND THE IDLENESS OF MEM- BERS IN THOSE PERIODS DUE TO LACK OF WORK. Average Average mem- No. of Per- Date bership workers idle centage Sept.-Dec, 1915 ... 7,441 529 7.1 • Tan. -June, 1916 ... 7,650 394 5.2 Apr., Sept., Oct., 1920 9,001 237 2.6 Dr. Klrchwey — That is from April to October of this year of 19207 Mr. Rouse — Yes, correct. That is the dullest period of our industry, the summer season. 27 Dr. Kirchwey — And it shpuld be made clear, I think, th^t in all. of these cases, the figures given, and the per- centages deal Tvith those who are idle, because of lack of work. Is that understood? Mr. Bouse — That is assumed. It may be of their own volition, they do not want to work, but they are not work- ing according to our books. They have not paid any revenue into the union, as effrning, Doctor, those months, Mr. O'C'onnell, would you mind demonstrating that to Dr. Kirchwey? Mr. O'Connell — In Just what way? Mr. Rouse — We have a statement — there is our chapel statement, Doctor, that is issued to all of our members in the various chapels. ETrery member is compelled to pay 1% per cent, on his earnings, and each month a report is made by every office in the City of New York. It is audited by three members of the chapel and turned in to the secretary-treasurer. Now, in addition to that, members of the union pay to the secretary-treasurer the same assessment at the secre- tary's office, and those are from the chapel returns and from the financial books of the secretary that this Is made; so it cannot be refuted in any instance. (Handing paper to Arbitrator.) Mr. Brower — If I may have permission — I do not want to interrupt, but I think, perhaps, the Doctor might get some facts there. In keeping these records, do your em- ployees put in that their earnings were on a minimum amount of dues, whether they have been busy or not busy. Mr. Rouse — They are paid on their earnings. Mr. Brower — Percentage of earnings? Mr. Rouse — Yes, Mr. O'Connell — If I might answer, Mr. Brower, that in addition to the 1% percentage of their earnings, they pay $1.50 dues, whether they work or not; but these records are taken from their earnings, whether they are working or whether they are idle. Mr. Rouse — If they have only paid a dollar a month it is assumed they are either out of work, or sick, or pen- sioners. Dr. Kirchwey — Is there any verification of that pay- ment? Mr. Rouse — ^Tbere are three classes. Dr. Kirchwey — How do you get at a man who pays only his monthly dues? Mr. Rouse— Well, if he is not sick, if he is not retired or on a pension Dr. Kirchwey — Or on strike. (Laughter.) Mr. O'Connell — I will explain that to the Doctor. The secretary-treasurer holds in his office the cards of the pensioners, the old age pensioners, and sick members, and every man is under the jurisdiction of a representative at our headquarters in a chapel. He Is what is called the chairman, or father of that particular place, and he must collect 1% per cent, from that individual each week; and at the end of the week his board of auditors, or finance committee, compares those receipts with what he has turned- into the secretary's office, to see whether they bal- ance with what has been collected In that office, and post on a sheet those payments. Dr. Kirchwey — And he is bound to know whether a man Is actually working or not? Mr. O'Connell — Absolutely. Mr. Rouse — Because at the end of each week, when each man is paid, he must pay his assessments on what he has earned, and the chairman has full knowledge of that; and if he does not pay it he is turned into the secretary's office as being a delinquent, and then it is the duty of the or- ganizer to look this man up and see that he pays. Mr., O'Connell — Tliey might come to our office and give an explanation. If he says he has not earned anything, we put him Mr. Rouse — Through a third degree. Mr. O'Connell — Through a third degree, as to what he has done and what he is doing. Mr. Robinson — I am chairman of a chapel and, as further illustration, I collect dues and assessments each week, and I 'turn them in on Monday, in 48 hours, to the secretary- treasurer. 1 keep a book, and also work out these figures. Last Sunday I made out my accounts for the past month, and on that month it will show whether a man has worked three or four weeks or less; and another blank might show where in the business he has been working, and another blank will show if he has been working somewhere else. Dr. Kirchwey — How mniiy men do you take care of? Mr. Robinson — Average of 85 men; and would fluctuate 5 in a month, one way or another. Pr. Kirchwey — You know them all personally? Mr. Robinson — Personally, yes, sir. Dr. Kirchwey — You gentlemen entirely report — you de- pend upon the report of the men? Mr. Robinson — I have an inside of the payroll, as to what the man says. The office never tries to keep that away from the chairman. Mr. Trachtenberg — These percentages refer to those who are out of employment. Dr. Kirchwey — Tliat is the point I was making. Mr. O'Connell — They do not include sickness. Dr. Kirchwey — I understand that, and 1 wished to ascer- tain what verification there was of the figures given as to those who were idle because of lack of work; thpt includes those who are voluntarily idle as well as those who are otherwise. Mr. Rouse— Correct. A man may have kept out of work by his own volition. He may have had all the opportunity and does not want to work. Dr. Kirchwey — I think I understand it. Mr. Trachtenberg— In additioii to that, the averages are not for the entire year, for the three months, for the months of April, September and October. Dr. Kirchwey — I want to correct my statement. I see that for 1915 it was from September to December. In 1916 from January to June. In 1920 it averaged the three months, April, September and October. Mr. Trachtenberg — April was taken, because that Is the time the employers claimed the industry was on the down- ward grade. Mr. Rouse— There is a slacking-off in April, covering June, July, August and September, and then it begins again. If you will notice, to demonstrate that, we have taken April and taken September, and you will notice the decrease was from 256 in September to 202 in October. These people, the State Department of Labor, used to come into «ur office regulai;ly, once a month, and compile these statistics, until 1916, for the State Department, in the issuing of their monthly book or quarterly book, I don't remember just what it was; but, as has been stated, they discontinued that in 1916, and these records were still In our possession, and they were made from the official docu- ments of the State Department, and these other records are made by the survey In the same manner that the State Department formerly did— the same thing. The methods used by the employers simply illustrated that argument by analogy is sometimes a very dangerous weapon. The two industries can in no way be compared at the present time. While the clothing industry Is at the present time entirely demoralized and in New York— for instance, out of the 50,000 members of the Amalga- mated 40,000 are walking the streets— in Typographical Union No. 6 only 237 out of an average membership of 9,001, or 2.6 per cent., are unemployed at present. The arbitrators of the clothing industry, in view of the terrible conditions which prevailed, were anxious to main- tain the existing standards, which, by the way, the work- ers in the clothing industry have succeeded in bringing to a comparatively much higher level during the past five years than the workers in the printing industry. Not- withstanding these appalling conditions In the clothing in- dustry, the arbitrators in Baltimore granted an increase to the pressors because they considered them to be under- paid. (Employers' Exhibits D-1, containing decisions in the clothing industry — overlooked by the employers.) We believe, and we shall endeavor to show you, Mr. Arbitrator, that the economic conditions of the printing industry do justify a wage increase. As far as the cloth- ing industry, to which our adversaries refer and submit voluminous data and exhibits, that, we contend, is ex- traneous matter and should have no part in the proceed- ings. Furthermore, as we have already pointed out, the employers had offered Typographical Union No. 6, in lieu of going to arbitration, an increase of four dollars. On page 114, stenographer's report, the employers refer to the coming 44-hour week. This 44-hour week has been agreed to by the Closed Shop Branch of the United Ty- pothetse of America, which is a national organization of which the employers appearing before you are a part. This 44-bour week will be inaugurated simultaneously throughout the country. In connection with this we wish to present at this time the report of the action of the late International Typographical Union Convention at Albany, including the resolution of the Closed Shop Branch of the United Typothetse of America, with comments by Secretary Hays of the International Union. This is a very interest- ing and enlightening document. (Rebuttal Exhibit No. 7.) The resolution is as follows: "RESOLVED, by the Closed Shop Branch of the United Typothetse of America, in annual convention assembled in New York on September 15, 1919, in accordance with the intent expressed by the International Joint Conference Council, that we hereby agree to the introduction of the forty-four hour week in the Closed Branch on May 1, 1921." THE FORTY-FOUR HOUR WEEK "It has become apparent that influences outside the printing industry, that are especially involved in 'open shop' propaganda, have become interested in th^ efforts of the International Typographical Union to establish the forty- four hour work week for the members of that organization, and are not only endeavoring to induce so-called open shop printing office employers to conibat the shorter work week, but are also trying to have members of the Closed Shop Branch of the United Typothetse of America surrender their membership in that branch, with the idea that a resignation from the Closed Shop Branch would relieve them from the provision of an agreement made by that branch and the Printers' League of America with the printing trade unions for the establishment of the forty- four hour week on May 1, 1921. "In view of this situation, and in order that the mem- bers of the International Typographical Union may be in- 28 formed upon the subject, that portion of the report of the Bhorter work-day committee to the Albany Convention, which refers to the forty-four hour week, is printed here It is as follows:" b Action of the Executive Council "The Closed Shop Branch of the United Typothetae of America has joined with the printing trade unions in setting a time for the inauguration of the forty-four hour week by the adoption of the following resolution: "Resolved, by the Closed Shop Branch of the United Typothetae of America, in annual convention assembled In New York on September 15, 1919, in accordance with the intent expressed by the latemational Joint Conference Council, that we hereby agree to the introduction of the forty-four hour week in the Closed Shop Branch on May 1, 1921. "The Printers' League of Ataierica and the Stereotypers* and Electrotypers' Association also have joined in agreeing to the introduction of the forty-four hour week on May 1, 1921, through negotiations in the International Joint Con- ference Council. "Because of the above facts the executive council of the International Typographical Union hereby instructs the officers, members and committees of subordinate unions that they are to sign no book and job agreements or scales of wages to run beyond May 1, 1921, unless provision is ' made therein for the establishment of the forty-four hour work week upon that date. "Local unions will be kept fully informed in regard to progress made upon the shorter workday questions. "Etaternally, J. W. HAYS, "Secretary, Executive Council, International Typographical Union. "Indianapolis, Ind., September 1, 1920." To prove that the condition of the printing industry does not warrant an increase, the employers refer to the forth- coming decrease in hours, that is, the 44-hour week, which is to be inaugurated on a national scale as per agreement in May, 1921. This decrease they claim will be an ad- ditional burden on the industry and they calculate the ap- proximate amount of additional cost which it would in- volve. The additional cost of production due to a decrease in working hours is not a new argument used by the em- ployers. In fact, in every movement for a shorter week, It has been the cry of the employers. When the workers were asking for a 10-hour day the employers claimed that the ini^stry could not stand that, and when they were fighting for an eight-hour day after the 10-hour day was secured, the employers made the same claim. Every student of industry and economics knows that the reduction in the hours of labor leads to higher productivity and larger output. Lord Leverhulme has established in his factories a six-hour day and claims it to be an industrial success. The 44-hour week has been established for years in a number of industries such as the building industry, the clothing and needle trades. I The New York Times, on Sunday, November 14, 1920, page 9, in an article headed ' 'Unemployment Effects, ' ' had this to say (Rebuttal Exhibit No. S): "An interesting and unexpected labor development has taken place in the Ford plants. Instead of reducing their !orces by 25 per cent., as did most of the Detroit auto- mobile plants in the last two or three months, the Ford manatrers cut the working week to five days. Not only Sunday, but Saturday also, is a holiday for the Ford em- ployees. When the reduction was made production in- creased, the Ford engineers report. "During the last month, running but five days a week, the Ford plants turned out more finished products than they ever did in any month of six-day weeks. ' ' From page 117, stenographer's report: "(d) Printing trades unions not only doing nothing constructive to assist in meeting this problem, but are, by their lack of policy, forcing the League, through their neglect to jfork It out independently," etc. Now, let's see how much truth there is in that state- ment. In the "Report of Proceedings at a Conference held at Room 512, FiiUer Building, Fifth Avenue, New York City, between Committee from Printers' League Sec- tion, Association of Employing Printers of the City of New York and Typographical Union No. 6, Pressmen's Union No. 51, Franklin Union No. 23„ and others," a copy of which we submit (Rebuttal EJxhibit No. 9, pages 97. 98 and 99), you will note the following: "Mr. Rouse — • • • "1 have endeavored in my humble way, to do the best I know how for them. I am going to continue to do the best I know how for them; and I will tell you frankly that I said then, and I will say it now — and r want the official stenographer to emphasize this state- ^ment — that if you do business with the printing crafts unions representee! in the Conference that you drew to- gether and not us, jou will get the best contract that you ever had In the City of New York. That contract will' contain a clause guaranteeing that every union sign- ing that agreement will keep its faith, and will _ publicly disavow the act or acts of any other organization that breaks the faith, or causes any breach of this contract, until the date of its termination. "Now, that is an offer I made to you a long time ago. I repeat it to you again; and with that goes the guaran- tee of everything that I can give, and I know that the others have vouchsafed to say that that is true, and if there are any of those that dissent from me today, they can speak for themselves, but that has been offered to you. "Now, you come here and you lay down a blanket de- cision, an arbitrary ruling. I have pointed out to you very plainly and very concisely I think, under the state of mind that 1 am laboring under at the present time, knowing all the facts that I do, my position. I can not, neither will I, accept for my organization, any such con- dition; but we will make an agreement with you, and we will keep this agreement; and there Is not a ^an in your League, not one single solitary man in your whole Em- ployers Association that can point to one single act of mine, or any of my colleagues, during the whole tenure of my oflBce, extending" over a period now of four years, and going into the fifth, the longe&t that any man has ever served as president of my organization, that will in any way show that I have deviated from the course of honesty, because I know that in the end that is the only and inevitable policy. That is the course I will now pursue in this, and if you were sitting in my position, Mr. Green, you would do the self-same thing, because I still believe and always will believe, no matter what may come or go, that you are honest in your convictions. "Mr. Green — Well, as far as Typographical tFnion No. 6 is concerned, I am perfectly satisfied with the contracts we have had with the Typographical Union in the past. When you speak for the Typographical Union alone, I would be perfectly satisfied to have such contracts In the future. If you are speaking simply for Typographical Union No. 6— "Mr. Rouse — Would not you be satisfied with a contract, as I have suggested to you? "Mr. Green — No, sir, I would not. Mr. Francis has suggested to me, that as far as we know, the pressmen and feeders were in good standing up to the 17th of September." • • • The above should convince you, Mr. Arbitrator, that the prihting trades unions did attempt to do something constructive along the lines enumerated in the brief of the employers and were met by a rebuff from the latter. But now, at this late date, when it suits them, they propose to change the existing contract they entered into with the Typographical Union. And we say, no, not at this time. The contract existing between us is of their own volition and should be adhered to. After these negotia- tions are concluded, we shall be pleased to listen to any suggestions from the employers along those lines. On page 120, we find: "14. Readjustment now specifi- cally applies to conditions outlined in the existing cou^ tract to the scale of January 1, 1920, and not to the 1914 scale." You, Mr. Arbitrator, are then referred to Employers' Exhibit A, which is the contract that now binds the two parties appearing before you. The con- tract quoted in part, reads: "No precedents or previous conditions, rules or agree- ments shall be recognized in any way, or affect or modify these rules, which are to be interpreted for changes only in accordance with the Arbitration Agreement between the Printers' League Section, Association of Employing Printers of the City of New York, and New York Typographical Union No. 6." Immediately following that quotation, which appears on page 15 of the Employers' Brief, will be noted: "The intent and purpose of this on the part of l/oth parties was to have the contract complete and of itself." Mr. Arbitrator, we wish to most emphatically deny that statement. The part of the scale contract quoted above, was not written with any reference to wages at any time. The agreement quoted was written in the scale contract in 1916 and has remained there ever since. This quota- tion has to do with shop conditions only, and was in- serted for the following reason, and for such reason only: Previous to the insertion of this clause, it had been the practice of the union, upon request from members of some offiices or their employers, sometimes conjointly, suf- ficient reasons being presented, to grant some concession or modification in the laws of the organization govern- ing shop conditions. This practice had been a source of complaint, from time to time, from both employers and members of the union. The concessions or modifications, once established in these offices, became the "precedents, or previous conditions, rules or agreements" referred to in the clause quoted. Taking all this into consideration, we ask the Arbitrator, whether the introduction of that clause, submitted as an exhibit intended to exemplify the paragraph on page 120, stenographer's report, is at all appropriate or justified. If it was not put there to mislead, we are at a loss to assign any other reason. \ On page 129. stenographer's report, we note: (b) Economic conditions show world-wide depression and con- traction," (we ■ fail to note any such condition in the printing industry) — "printing conditions showing decreases in volume of business, reduction in overtime and some layoff of men." The proof of the economic condition of the printing industry, as affecting the parties in this controversv, can be verified by the submission of their books for 'scrutiny. The layoffs they refer to are seasonal 29 and recur annually. As for the comparison in tbe re- duction in overtime since January 1, 1920, that condi- tion is of small weight in this controversy, and will readily be understood by the Arbitrator when we tell him that January immediately followed the late upheaval in the book and job trade, during which the plants of the employers were idle for eight weeks. Consequently, when the employees did return, it became necessary for the employer, in order to catch up with his work, to keep his force after regular hours, In other words, to have his force working overtime. Inasmuch as the plants bad been idle for eight weeks, the amount of overtime necessary to make up for that idleness can easily be imagined by any layman. Yet this is one of the exhibits the employers present as indicative of the economic conditions of the industry. On page 131, stenographer's report, counsel for the employers refers to two letters, one from each of two clothing firms. The first letter is from a firm that is at the present time under indictment for profiteering, and a perusal of that very short epistle is not convincing. And what do we find in the second letter? The first paragraph of the second letter expresses an opinion and the next paragraph of the same letter contradicts the statements contained in the first letter. We submit the employers must be put to desperate straits indeed when they present statements such as these. (See Reb. Exhibit 10.) Mr. Kouse: That is a recent newspaper clipping, where Mr. Brill confesses that all clothing dealers have been profiteers. On page 140, stenographer's report, first paragraph, the employers tell you that "no doubt is left that the recession is general in all lines." The third paragraph mentions a number of commodities in which tbe peak had been reached some time ago, yet eggs and butter are higher today than ever. On page 149, Mr. Brower speaks of net profits and refers to exhibits substantiating same. Again we say that the only authentic evidence to prove net profits or any other kind of profits or losses are the books of the firms engaged in the industry. We wish to again ' call the particular attention of the Arbitrator to pages 151, 152 and 153, stenographer's report, in which references are made to letters received in reply to questionnaires sent to periodical publishers, leading New York book publishers, New York Employing Printers As- sociation and buyers of printing and purchasing agents. Mr. Arbitrator, you will please bear in mind that these parties, all affected by the present negotiations, were fully aware as to what use their letters would be put. Is it anything but reasonable to suppose that tbe parties answering these questionnaires would write letters favorable to their own cause? But, more than that, these letters, "while not a part of this exhibit, are available to the Arbitrator for ref- erence." Mr. Arbitrator, we solemnly protest that any matter not available to representatives of ^pographical Union No. 6 should have no part in these proceedings. This is but Just and equitable and is the metbod pur- sued in all arbitration proceedings. We are amazed at the position assumed by the em- ployers at this time. On page 168, stenographer's report, we find another most astounding statement. Counsel for employers states: "Conceding that the peak of high prices has passed, it is obviously illogical to expect Butterick to raise the price of its subscriptions and advertising." Now, let us see how much truth there is in that statement. (Reb. Exhibit 11). I introduce at this time the rate card in effect, March, 1920, issue, in effect — July issue. I>r. Kirchwey — Bate card of what? Mr. Bouse — The Butterick Company; the advertising rate card of these various publications. Dr. Kirchwey— In effect, the first one in March? Mr. Rouse— In March, 1920. Dr. Kirchwey — The second one in effect July, 1920, and the next January 21, 1921. Mr. Rouse — A further increase. The Butterick Company : Increased Delineator line rate 36 per cent. Increased Delineator page rate 24 per cent. Increased Designer line rate 112 per cent. Increased Designer page rate 86 per cent. Represented in dollars, tbe increase per page for the Delineator is $1,050 with li reduction to the advertiser of 120 agate lines in space. Represented in dollars the increase per page for the Designer is $1,250 with a reduction to the advertiser of 120 agate lines in space. Delineator, (February-November, 1920), increased In cir- culation 89,294. Designer,^ (February-November, 1920), increased In cir- culation 180,627. Delineator increased from 20 cents to 25 cents per copy and from $2.00 to $2.50 per year. Designer increased from _ig cents to 20 cents per copy and from $1.50 to $2.00 per year. This establishment employs 68 members of Typographical Union No. 6. We ask, do these facts disclose any reason why the compositors in their enifjloy should not receive an increase in wages? Dr. Kirchwey — During what period do these statistics relate to? Mr. Rouse — February to November. Dr. Kirchwey — You have not made that summary a part of your brief? Mr, Rouse — This is the paper. Dr. Kirchwey — This is intended as a summary? Mr. Oppenbeimer — It is not a part of the brief. It is intended as a summary. Dr. Kirchwey — It is a summary. Mr. Rouse — To demonstrate just what I mean, we pre- sent for your Inspection, — there is the Designer, as it appeared in December (handing paper to Arbitrator). There is the Designer as it appears in January. Now, they have increased the advertising rate — the line rate in this particular paper has been increased 112 per cent., or in other words, from $2.00 a line to $4.25 a line. By line I now present to you an agate line, (Here Mr. Rouse pre- sented the Arbitrator an agate line in type — metal.) That is the charge, $4.25 for one line of that. That is an agate line, and in addition to that — Dr. Kirchwey — They charge a high price. Mr. Rouse— And in addition to that, they increase that one line. Dr. Kirchwey, 113 per cent. Furthermore, they not only increase the page cost but reduce the size; 1 have it here. There is a diagram, which I did not want to burden you with because I am afraid you might be- come an expert in printing, and we do not want you to do that, because you will starve to death if you do, if you work at the case (laughter). Dr. Kirchwey — I might become an employer and get rich (laughter). Mr. Bouse — Then you will have plenty of money; bat, to show you just what we mean, the Designer, as it was printed in December, which is the Designer now, there is the Designer under the reduced size. They have taken oif thirty lines per column, or in other words, 120 lines to the advertiser; and for this page they charge him $1,250 more, approximately $1,200 more, and taking away the lines of space. The page— the object of this is to cut the postage. I believe, to reduce the paper cost, and increase the cost to the advertiser. In other words, Butterick is getting it going and coming, at the expense of Uncle Sam, the ad- vertiser and the compositors; and yet they come and say the Butterick Company- 1 fo;:get what they said— it is obviously illogieal. • We might repeat at this time that quotation — conceding that the peak of high prices has passed — "it is obviously illogical to expect Butterick to raise the price of its sub- scriptions and advertising" — and yet they are going to raise again on January 1. On page 182 of the stenographer's report, the emplovers say: "Further presented for your attention is Bmplovera' Exhibit E-1, together with a map covering New York and the country beyond Milwaukee and St. Louis. Noted thereon are different cities and their wage scales, and the scale showing the distance within a certain distance from New York here." Included is a very formidable looking map, on very dark paper, in all making a very gloomy exhibition (from the employers' point of view) of the conditions existing within a certain radius of New York. But after Typographical Union No. 6 had time to go over the figures submitted by the employers, this exhibit lost Its atmosphere of gloom, and we very much question, in the light (as contrasted with gloom) of our analysis of that most august exhibit, whether this chart should ha-ve any weight whatsoever. In this exhibit we find listed the names of 47 cities within a certain radius of New York and the scales paid m those cities. Ot these 47 cities, after checking up by Typographical Union No. 6, we find 18 undisputed. That Is to say, 18 of the cities are paying the scale enumerated, so far as we know. Seven of the cities enumerated are at the present time negotiating scale increases. These seven cities are Spring- field, Mass.; Bridgeport, Conn.; Trenton, N. J.; New York, N. Y.; Haverhill. Mass,; Erie, Pa., and Newark. N. J. Newark has a scale contract that keeps pace with the fiY I ^f.*'^^,' ^°*^ ^°y change in the New York scale will automatically affect the Newark scale In seven of the cities enumerated by the employers, a majority of the members receive more than the scale. These seven cities are Hartford, Conn.; New Haven, Conn.; Portland, Maine; Richmond, Va.; Washington, D. C: Des Moines, Iowa, and Milwaukee, Wis. rti«^n"/.tf®° S£ ^^^ ""i}}^^ enumerated by the employers are disputed These cities are Albany, N. Y.; Worcester. mt«w; ""pnS^^^v.^^- ^°«*°"' ^"«« : Providence. B. 2m«hn;..h^°«' Niagara Falls, N. Y.; Rochester/ N. Y.; ^n.^^^ j^A,^''-' J^.^^?''''^^^''' Cincinnati. Ohio Indian- apolis, Indiana; St. Louis, Mo. wft? n*?« ^^l"^' ?^'-Pa«P® members will receive, beginning with December 1, 1920, a bonus of $12.00. T.T^^t/'S'ir^l? ***^H ^^"""^^ ^^^ <^it*es listed by the em- SX iw *^^ s<^ale8 as submitted by the latter, the scales that are now being paid by those cities and as 30 they should appear in the table, aud the difference, in dol- lars and cents, existing between the figures presented by the employers and the scales now in existence in those cities. This table does not include Columbus, Ohio, where the new scale does not go into effect until December 1, 1920: Scale submitted by Employers in Exhibit B-1 Albany $33.00 Worcester, Mass. . . . 31.50 Beading, Pa 36.00 Boston 37.00 Providence 30.00 Ottawa 32.00 Niagara Falls 31.50 Boehester 38.00 Pittsburgh 41.00 Dayton 36-40 Cincinnati 36.00 Indianapolis 36.00 St. Louis 3S.0O Scales ac- tually being Dif- paid ference $36.00 $3.00 39.50 S.OO 38.00 2.00 41.00 4.00 35.00 5.00 35.00 3.00 39.00 7.50 41.00 3.00 43.00 2.00 42.00 6-2 46.00 lO.OO 44.00 8.00 44.50 6.50 47 18* 148 RnCAPITULATION Total number of cities submitted by employers Number of cities in which figures are undisputed Number of cities in which figures are disputed Cities now in scale negotiations 7 Cities in which printers are receiving more than the scale •• T Cities for which no figure was submitted ' 1 Absolute confirmation of all of the above is furnished by data from officers of the unions quoted and is herewith submitted in evidence as Reb. Ex. 12. Bridgeport is in negotiation. Trenton is in negotiation. Haverhill is in negotiation. Brie Typographical Dnion is in negotiation. With regard to Hartford, the secretary of the union says the minimum scale is $30.00, but practi- cally all are receiving $35.00 and better. New Haven, the secretary states "employers and em- ployees alike concede the scale and its supplements are virtually a scrap of paper at this time so far as the wages named therein are concerned, as no printer can be found to work at such figures here, and are receiving very much more." . Portland, Maine: "Most of the men have received more than this, that is, $27.00, and the first of October, the majority receiveS $33.00 and $35.00. Final action will be taken on Job Scale Committee report, to meet a commit- tee of this union. It is dated November 20." Bichmoad Typographical Union, Richmond, Va., state "of course the men are receiving a great deal more than the set scale, ranging from $35.00 to $45.00. The com- mittees are now asking for a scale of $40.00 and $45.00." Washington, D. C, the average in Washington being about $45.00, which rate we hope to improve." This is the book and job industry. This is from Des Moines. "This scale was agreed to on January 1, 1920. The newspaper scale was agreed to in May, 1920, providing for a wage of $43.00 for day work, $46.50 for night work. The most of the job shops began paying the newspaper scale; at least, 75 per cent, of the book and job men are receiving $43.00 per week. Some others are receiving $40.00, $42.00, and a few $4o.00. As this agreement runs until May 1, 1921, we have not yet begun negotiations for a new scale." Milwaukee says: "Complying with your request, I am enclosing a copy of our present job scale. The scale it- self does not show much as we have secured bonuses until at the present time hand men ore receiving $41 00, and machine operators $42.00 per week. The scale does not expire until June 30, 1921." .^ . o „.„„ That is where they are receiving more than their agures Now, then, we come to the figures which are disputed, which we read from the table. F'rom the Albany Typographical Union: "Your rejau^f ,f" data has been turned over to me "y^Mr MacFarlane - ?hese letters are all addressed to me, Dr Kirchwey There is the report to the Conference of September 2^*' "^ tioned in the letter, which shows book and job, $36.00 and «3™00 which is k difference of $3.00 more than the figures' the employers present, proving conclusively that their ficures are not correct. -rcr^- We submit the second set. Their figures .hote Wor- „o=Vj; ot «qi W There is the printed scale in Worces- ter in effect October, 1920, which states all journeymen shall receive $39.50 per week, a difference of $8 00 be- tween theirfl|ures and the actual figures __that ^exist w^rsh^f «.:?5^i?€l^» ^— - of 48 hours. Their figures were $36.00 difference of $2.00. confirmation the same ts.o ours $38.00, ^^ of these cities have not been checked up and are ?-'2™ "l^Li" *5lTetre*1 'bt-uT-of $12.00 on De- .\lBO confirmation of the $4.00 increase, effective Septem- ber 10, 1920, in Boston, showing a difference in that figure of $4.00. Providence: "I am enclosing herewith a copy of our Job scale negotiated in 1918, and amended September 1st, 1020. setting forth the minimum, and it is now in effect in this City. The present scale expires December 31, 1920. We are now negotiating a new book and job scale, to take effect January 1, 1921." This is Providence Typographical Union. There are figures there showing $35.00 as against their figure of $30.00, and they are going to negotiate another scale on January 1st, a difference of $5.00 in their figure and the right figure. Ottawa Typographical Union, the Employers' figure shows $32.00. That wage clause has been amended to $35.00, a dilference of $3.00. Niagara Falls: The figures they submit are $31.50. The figures prevailing in Niagara Falls are here in the amend- ed contract, the scale being paid at present $39.00. "I have just received your telegram, and was of the opinion that I enclosed our present scale in my last letter and on page 2 the prices for book and job oflices are quoted. "The scale paid is the same as contract — foremen, $44.00; assistant foremen, $41.00, and floor men, $39.00. Proof- readers, $39.00; operators, $39.00; machinist operators, $42.00. There is no bonus being paid, and the above prices are the ones being paid." ^^^ Dr. Kirchwey: What is the date of that contract? Mr. Rouse: The contract is not dated; it is a blank contract, with the figures filled in and noted. This letter is dated November 25, 1920. It shows $39.00 as against $31.50 for Niagara Falls. Mr. Brower: Is there any date to this contract, there generally is. Mr. Bouse: They have not filled it in. Dr. Kirchwey: I raised the question at that time in order to account for the discrepancy between the figures which you are criticizing, and those which you are offering to substitute. Mr. Rouse: June 1, 1920: "On and after June 1, 1920, until May 1, 1921." So it would hardly allow for any discrepancy to June. Rochester, their figures quote $38.00— "enclosed is a contract as signed in Rochester." It calls for all journey- men beginning November 1, 1920. shall receive not less than $41.00 per week. Pittsburgh: There is a difference there in the day book and job men of $2.00, but it shows a greater differ- ence — they have a differential there which does not exist with machine operators and monotype keyboard operators — that is the printed scale submitted. Mr. Brower: Is data on that Rochester statement as to when it is effective? Mr. Bouse: Yes, November 1st. Mr. Brower: Just now, then. Mr. Bouse: They have been in negotiation, and just settled. ^ ^ Dr. Kirchwey: This scale that you have just read goes into effect — I mean the scale in Rochester has just gone into effect? , , « ^ ^ . Mr. Bouse: November 1st. That scale I referred to of Pittsburgh became operative October 1st. Dayton, $36.40— "In reply to your letter, this agreement expired October 1st of this year, but by agreement was extended until May 1, 1921, with an increase of $7.00 per day, and $47.00 per week, and making an advance of $6.00 per week as this scale was raised last March. Cincinnati: "Printing. November 13, 1920, page 96. An increase of $10.00 per week for hand workers and $7.00 per week for machine workers has been announced by Joseph W. O'Hare, Arbitrator, passing on demands or Union printers in job scale shops in Cincinnati. As a result of his decision, printers in Job shops will receive $46.00 a week for day work, and $49.00 a week '« Jight work. They will also receive time and a half for oTertime, Tnd double time for Sundays and holidays The increase in the wage scale is retroactive to September Ist-one dollar morl than the New York scale, in an Arbitration. Award handed down November 4th. Indianapolis: This is from the National Headquarters- We present their scale. Mr Brower- \^hat is the date of that going into effect? Mr' Bouse: It is included in the Typographical Journal. It w'as in September. I have not got the date on here. It is right here direct from Official Headquarters. Now, then, we present this scale of Columbus, where- they have a bonus, December 1, 1920. ^ „ „ According to the statistics as we present them, con- firmed by the various unions oflScially, and by the decisions, of arbitrations, it must be self-evident. Dr. Kirchwey, that the entire exhibit, as submitted by the employers as exemplifying the conditions of our industry in other cities, and making comparative averages of scales and so forth, falls to the ground. Any one figure that was disputed there would naturally break down the averages in all. We have demonstrated, in this exhibit ^at we present t Columbus, Ohio, ' cember 1, 1920. to you fourteen cities, where the figures of the employers a?e absolutely confounded by documentary evidence; ands therefore, their averages fall fiat to the ground. 31 Mr. Oppenheimer : One moment. I think we ought to provide for lunch now, before we get into Part II. It is one o'clockv and we are going to meet here for the rest of the day. Mr. Rouae: Would you prefer to adjourn at this time and have lunch? Dr. Kirchwey: It ia getting to be one o'clock, and I think it is time. Mr. Rouse: We are at your pleasure, Doctor. Dr. Kirchwey: How much longer will you take? Mr. Rouse: I will probably be a couple of hours or three hours. Mr. Oppenheimer: All day. Dr. Kirchwey: I do not think we will wait then before luncheon. When shall we convene ? Mr, Rouse: Two o'clock or two-thirty. Dr. Kirchwey: Two-thirty will be better. AFTER RECESS Dr. Kirchwey: On what page of your brief does Part 2 begin ? Mr. Rouse: 57. It is following that table. Dr. Kirchwey: Gentlemen, Mr. Rouse is now prepared to continue his rebuttal argument, beginning with Part 2. Mr. Rouse (Reading) : Part II. As per agreement with the Employers, this controversy has its inception as of October 1, 1920. The agreement stipulates: *'IN EFFECT JANUARY 1, 1920" "Effective in all of the terms as set forth in this con- tract from January 1, 1920, to September 30, 1921, ex- cept as hereinafter provided for subject to opening, by either party, for readjustment on October 1, 1920, only as to the rate of wages to be paid; such readjustment to be based upon the increase^ cost of living and the economic conditions of the industry at the date of re- adjustment." On August 17, 1920, Typographical Union No. 6 notified the Employers that No. 6 "desires to open the scale on October 1, for a readjustment of wages only." (See Em- ployers' Exhibit A-4.) Typographical Union No. 6 has done everything in its power to facilitate this matter, and it is through no fault of theirs that this question was not settled long ago, as it should have been. "Such readjustment to be .based upon the increased cost of living and the economic conditions of the industry at the date of readjustment.'! As we have pointed out elsewhere, the contract is clear and precise and admits of no interpretation. It is obvious, therefore, that in all equity, the .only consideration to be given as basic factors of the award, are the cost of living on October 1, 1920, and the economic condition of the industry on October 1, 1920. A pamphlet issued by the International Typographical Union, entitled "Cardinal Points of a Labor Policy, Recom- mended by the International Joint Conference Council, Commercial and Periodical Branches of the Printing in- dustry" (of which our employers are a component part) contains these quotations: (Rebuttal Exhibit 13.) "CARDINAL POINTS OF A LABOR POLICY" "Recommended by the International Joint Conference Council, Commercial and Periodical Branches of the Print- ing Industry." "Issued by the International Typographical Union, In- dianapolis, Indiana. "Upon a foundation which is as solid as the Rock of Gibraltar, the International Joint Conference Council has laid its plans for the industrial reconstruction of tbe com- mercial and periodical branches of the printing industry. "These conferences have been characterized by the frank determination of the representatives . of employees and employers to meet the conditions which the war created without equivocation or evasion. No time has been frit- tered away in discussing the right of the workers or tlie employers to organize. There had been no senseless chat- ter to delay the complete recognition of the absolute neces- sity for collective bargains between the employers and the workers in the industry, and the mutual benefits to be derived therefrom. Nor has the unrestricted right of the workers to select their representatives In wage con- ferences even been questioned. "The cardinal points thus far agreed to are presented herewith. It should be clearly understood that the adop- tion of these principles by the Joint Conference Council does not arbitrarily compel their acceptance either by unions or by employers. They point the way to the elim- ination of much industrial unrest, to the fair adjustment of wage controversies, to the establishment of stability and prosperity, and to the progress of those who are en- gaged in this branch of the printing industry. "First. That the industry frankly recognizes the cost of living a^ compared to 1914, as the basic factor in wage ad- justments, "Regardless of the deliberMely untruthful propaganda which has been so widely circulated during the past four years, the facts are that the wages of hundreds of thou- sands of T\K)rkers have not been increased sufficiently to meet the increased cost of living. The inevitable result has been that the pre-war standards of living of these workers have been reduced. "The Joint Conference Council, by the adoption of this principle, meets this issue squarely and decisively. Since reduced standards of living have been the basic factor in creating industrial unrest, the basic factor in removing industrial unrest is the restoration of at least pre-war standards. "The members of the Joint, Conference Council have no thought of establishing a fixed standard of living for any worker, nor have they arbitrarily decided that all of the wage scales of 1914 were equitable. Manifestly some of them were not. II "Second. The industry to pay at least a reasonable liv- ing wa^ej scales below this to he adjusted in frank recog' nltion of the basic principle involved, "The second cardinal point meets aijother issue squarely and decisively. In some jurisdictions the industry did not pay a reasonable living wage to some workers in 1914. Therefore, in such Instances, the application of the first cardinal principle would not provide a reasonable living wage in 1920. It is the determination of the Joint Conference Council to give thorough consideration to the wage scales of 1914, and to find a way to correct these obviously inequitable conditions if it is possible to do so. Ill "Third. That when not in conflict with the existing laws of a constituent body, local contracts he for a period not less than three years, and include a clause providing for annual readjustments of wages based upon cost of living, as determined by authorities jointly agreed upon, and upon the economic conditions of the industry at the time of readjustment. "In the third cardinal point the Joint Conference Council places itself on record as favoring agreements which leave the doors open for wage readjustments each year, the extent of such' readjustments to be based on the cost of living and the economic conditions of the Industry at the time such readjustments are made. "Fair readjustments to meet existing conditions having been made, then the economic condition of the industry becomes one of the basic factors to be considered. Through the adoption and application of this principle tbe fixed standard of living absurdity is gassed and effectively eliminated. * 7K "Fourth. That a uniform standard system of cost- keeping is considered fundamental to insure stability, per- manence and prosperity to the industry, and to provide a basis for securing a greater degree of uniformity in con- ditions throughout the country. A clause to he included in local agreements providing that such a standard system as is recognized by the organizations represenetd in the International Joint Conference Council be reg.uired. "From time immemorial the commercial branch of the printing industry has been considered both a tragedy and a travesty in the American business world. Demanding ex- pensive equipment and skilled workers, its dividends for many years were mostly accumulations of scrap iron, un- satisfied mortgages, disgruntled creditors and itinerant printers. No industry has given more and received less from the citizens of an ungrateful republic. Rip Van Winkle's historic nap was ' an afternoon siesta compared with the years of slumber which have kept this branch of our trade in a rut since movable types were invented. ' "In more recent years there has been at least a partial awakening. There are unmistakable signs of an inclination to put the Industry on a sound business basis, and since the members of the printing trades unions are vitally interested, It becomes our duty to the Industry and to ourselves to lend our co-operatlon where it s needed. "The worker is entitled to at least a wage sufficient to enable him to live in comfort, and to provide adequately for the support of his family, and the education and de- velopment of the next generation, with a modest allowance to be put aside for the inevitable day when he will be physically unable to keep pace with the ever-increasing industrial army. The inadequate wage breeds privation, poverty, and, in the end mental, moral and physical bank- ruptcy, "The infallible rule which applies to the worker applies with equal iufallibility to the dollar invested in the in- dustry: It, too, must receive at least a reasonablte living wage or face starvation and physical bankruptcy. In years gone by, neither the dollar nor the worker has re- ceived a reasonable living wage in many instances. Both have starved together. "Long ago the workers became convinced that uniform wage scales were essential, and th^se have been established throughout our jurisdiction. Both the representatives of the workers and the employers are now convinced that a 32 uniform cost-keeping system is also essential If stability, permanence and prosperity are to be insured in the in- dustry. Hence tlie fourth cardinal point. "Fifth. That controversies over wages, hours and working conditions between employers and employes can and should be settled without resorting to lockouts or strikes, through voluntary agreements to refer disputes, where unable to settle through conciliation, to joint boards of arbitration composed of equal representation of employers and employes, provision being made for an impartial arbitrator if necessary. "There have been mighty few strikes or lockouts In the printing industry which were not preceded or followed by attempts to reach an agreement through conciliation or arbitration. The few exceptions prove the general rule. The Individuals who are unalterably opposed to concilia- tion and arbitration in the adjustm'ent of industrial dis- putes are in the minority in America, and this is neither the time nor the place to pay our disrespects to them. Strikes and lockouts are the destructive weapons of In- dustry, and they are inseparable. Both have their cham- pions in the ranks of labor and in the councils of capital. Bach is responsible for many unnecessary sacrifices in the homes of workers, where privation and hunger too fre- Quently enter and abide. "Conciliation and arbitration are the instruments the use of which the majority of workers and employers have found best suited to insure industrial progress. If an ounce of prevention is worth a pound of cure, why waste a pound when an ounce will answer the purpose? The members of the International Typographical Union have so frequently and consistently endorsed these principles, both in convention and by referendum votes, that it seems a waste of time Co discuss the advantages of the fifth recommendation. "With the adoption of these five fundamental principles, the joint Conference Council will proceed to complete the general policy which will be recommended to the members of the constituent organization. "The desirability and the practicability of creating dis- trict councils in competitive localities will be taken up in the near future. A comprehensive survey of apprentice conditions will be made, and definite plans for more thorough training will be advised. Other questions of equal importanje will be considered. "The membership of the International Joint Conference Council consists of representatives of the International Typographical Onion, the International Printing Pressmen and Assistants' Union, the International Brotherhood of Bookbinders, and the International Stereotypers and Elec- trotypers' ■ Union, representing the employes; and represen- tatives of the Closed Shop Branch of the United IVpothetK of America, the Printers' League of America, and the Inter- national Association of Employing Stereotypers and Elec- trotypers, representing the' employers." — M. G. S. An article entitled "The Printers' Council," by William L. Chenery, from "The Survey." on February 21, 1920, and reprinted in pamphlet form by the International Typo- graphical Union, tontains the following; (Rebuttal Ex- hibit 14.) "The wage principles which have been endorsed by the International Joint Conference Council are as follows: "1. That the industry frankly recognizes the cost of living as compared to . 1914 as the basic factor in wage adjustments. "2. The industry to pay at least a reasonable living wage; scales below this to be adjusted in frank recognition of the basic principle involved." * * * * "Almost imperceptibly pools became holding companies and trusts, and the third stage was at hand. During those years organized workers had great difficulty in maintaining their standard of living. It is probably fair to say that unions discovered no variety of organization as useful to their purposes as the trust proved to be to investors and to employers. The generation prior to 1914 may well come to be known from the standpoint of workers as the dark age of American labor history. In many Industries the law of supply and demand regulated wages and living conditions. Ordinarily there were more workers than Jobs. Consequently the welfare of the wage-earner suffered fear- In the arbitration award handed down on November 4, 1920, by Judge O'Hara, arbitrator in the scale negotiations between the employing commercial printers of Cincinnati and the Cincinnati Typographical Union (Rebuttal Exhibit 13) the Judge says: ♦ • • • "The following principles, among others, for the adjust- ment of wages were agreed upon by the International Joint Conference of Employers and Employes and the com- mercial and periodical branches of the printing industry, "^'Tirst that the industry frankly recognized the cost o( Uving, as compared to 1914, as the basic factor in wage '*We*'ask*°you Mr. Arbitrator, does the perusal of the brief and exhibits submitted by the employers disclose any frank recognition of the cost of living as compared to 1914'' We fail to note any recognition at all. Yet that is our kgreement and the cost of living in 1914 must be recognized as the basic factor in one part of this pro- '*m?^emplo.vers argue that the cost of living In- this con- troversy should be considered only, between the months of January and October, 1920. They are willing to let by- gones be by-gones and forget the fact that when the last increase was granted, 20 per cent, was lopped off from the wage scales which should have prevailed when the award was granted, .that is, instead of $45.00, $51.00 should have been the computed wage scale, with 1914 as a base. The $6.00 per week which each man lost during the past ten months is lightly passed over, though added to the family budget it might have meant a little better clothing, a little more education and recreation for the members of the printer's family. We are informed on Page II, Employers' Brief, that the peak of high prices had been reached. This expression is very familiar to us, for at every wage negotiation we have had with our employers, we were told the same thing — six months ago, nine months ago, a year ago. The employers always seem to. have had either secret information or were endowed with a prophetic vision on the matter of the cost of living. When our scales were adjusted last, we were granted an increase of 84 per cent., which was, according to the then published report of the United States Bureau of Labor Statistics, the Increase in the cost of living since 1914. At the very same time, the Government was closing an investigation of the cost of living throughout the country, although the results were not announced until May 3, 1920, but the facts disclosed that Instead of an increase of S4 per cent, on the basis of which figure the wage award was made, the cost of living had by that time (December, 1919) increased 103.8 per cent., which should have be«> the basis for our award. MEMORANDUM STATEMENT CONCERNING INCREASED COST OF LIVING— 191^-1920 In accordance with joint conference between the repre- sentatives of the Printers' League and the following unions : N. Y. Printing Pressmen's Union No. 51, Paper Handlers' Union No. 1. N. Y. Press Assistants and Feeders Union No. 23, Paper Cutters' Union No. 119, Job Pressmen!s and Job Press Feeders' Union No. 1, agreement was reached by both parties to select statis- ticians to arrive at a joint agreement on statistical facts as to the Increase in cost of living, considering all avail- able authorities, and submitting for acceptance by the said Joint Conference Committee a cost of living figure showing the increases In cost of living from 1914 as a basis, appli- cation of the cost of living figure in the negotiations as to wage adjustments to be left entirely to the Joint Confer- ence Committee and to be in no way affected by the statisticians selected by such committees, the statisticians agreeing only as to the statistical fact involved, as to the increased cost of living. The statisticians selected were P. A. Silcox, Director Industrial Relations Bureau of the United Typothetse of America, representing the Printers' League, and A'lexander Trachtenberg, Statistician International Ladles' Garment Workers' Union, representing the Printing Trades Unions. The statisticians met and agreed upop the following statements of fact; 1. That retail and not wholesale prices should be used as a basis for wage adjustments, and among the present available published data the figures of the United States Department of Labor, Bureau of Labor Statistics, should be given precedence. 2. That the Department of Labor figures are, taken as a whole, the most comprehensive and Impartial available. 3. That the Department of Labor figures are, for rent, very conservative, if not low. 4. That food figures are compiled by the United States Bureau of Labor Statistics for New York as a whole and not by districts, which would probably show some variation if so compiled. ., „ nn 5. That the Department of Labor figures for the Z^ items of food show, according to published index figures, a drop of 6 per cent, from July to August. An opinion is not ventured as to whether this drop is temporary or permanent. 6. Taking all of the factors into consideration, and ofllsetting drop in foodj with possibility of increase in the rent figure, and considering the time, effort and energy it would take to compile an Independent study, the impar- tiality of which could be questioned, the statisticians have come to the conclusion that the composite budget figure of 119 2 per cent, as of June 15, 1920, given in the mimeo- gra'phed circular letter No. 808 of the U. S. Department of Labor, Bureau of Labor Statistics, as compared with December, 1914, be accepted as the reasonable, fair figure tor the Joint Committees to negotiate. The above is jointly submitted for the consideration of the two parties to this agreement. (Signed ) ^- ^- SILCOX, Director of Industrial Relations Bureau of the United Typothetae of America, Representing the Printers League. (Signed ) ALEXANDER TRACHTENBERG. Statistician International Ladies' Garment Workers' Union, Representing the Printing Trades Unions. September 28, 1920. 83 Employers' Exhibit B-1 is a very interesting picture of a number of curves sliowing the movement of prices as reported by various agencies. Among these are incluaea those showing -the movement of wholesale prices. Brad- street's. Dun's, the "Annalist" and similar agencies are engaged in the collection of data concerning the movement of wholesale prices only. , . . .^ The statistical representative of the employers had quite recently agreed with the similar representative of the Pressmen's Union in a statement submitted to the Joint Conference Committee that retail and not wholesale prices should be used as a basis for wage adjustments, since wholesale prices can not be considered as indicating the exact cost of living as it affects the average family. This statement is herewith submitted as (Rebuttal Exhibit 16). On page 19 of their Brief, the employers again take up the cost of living, showing that food prices have declined since June, 1920. They, however, fail to mention that rents have increased, and while they quoted the agree- ment reached between representatives of the Printers' League and the Pressmen's Onion, regarding the increase in the cost of living, they seem to have forgotten that the agree- ment contains the statement that if there were any de- creases In the prices of food, the increases In rent offset them. The agreement also shows that both statisticians agreed that the increases in tBe cost of living may vary in the different sections of the city, and a decrease recorded for the entire city may not mean a decrease In the sections where the workers live. While the statisticians representing both sides agreed that according to available published official reports on the cost of living, the increase computed by the U. S. Bureau of Labor Statistics be given precedence, and 119.2 per cent, increase in the Cost of living as reported by that Bureau for June, 1920, be taken as the criterion, the Typographical Uition maintains that the increase for rents and food as given In the study of the Bureau of Labor Statistics, are below the prevailing costs. We produced data in our first brief showing that prices of food as collected in the dis- tricts -where our people live are above those quoted by the Federal Bureau. The discrepancy may be due to the fact that the (Federal Bureau quotes the average prices for the entire city, while our study deals with prices in specific districts. We were concerned with the prices which prevail in the corner grocery store, where our members purchase their daily necessaries. This also holds true with regard to rents. We adduced our own data and quoted in support of our figures the results of a study made by the Association for the Improvement of the Condition of the Poor, made long prior to our study, which showed a percentage In- crease twice as high as that of the U. S. Bureau of Labor Statistics. The employers in their Brief maintain that the cost of living Is going down. As we said in our first brief, either the wish is the father of the thought, or the employers are influenced by the publicity regarding drops in -wholesale prices. (The statement of the TJ. S. Commissioner of Labor Statistics on the effect of declining pricas on the workers' cost of living previously quoted bears out our contention.) Any student of the cost of living knows that the drop in wholesale prices may be ielt by retail prices only six months later. The Federal Reserve Board recently stated that the recorded reduction in wholesale prices would affecj^ retail prices sometime next spring. l^e Massachusetts Commission on the Necessaries of Life, -which has been collecting data on the cost of living, substantiates our contention that the publicity regarding re- duction in prices does not reflect the true state of affairs. Following is a quotation appearing in the New York "Times" of October 27, 1920, which voices the opinion of this Commission (Rebuttal Exhibit 17): "NEW YORK TIMES"— OCT. 27, 1920— "LIVING COSTS HIGHER" "Boston, October 26. — ^The cost of living in this State Increased last month. Instead of declining, the Commission on the Necessaries of Life announced today. The figures showed an advance in the index numbers of living costs from 98.5 for August to 100.1 for September. "These figures," the statement said, "are a disappolnt- 'ment to every one who has observed the immense amount of selling propaganda relating to special lots of manufac- tured articles, especially clothing and shoes. The mark- down sales of merchandise have generally included things out of style, odd sizes, odd lots and out-of-season products. There has been almost no variation in regular standard lines of either clothing or shoes." As further substantiation of the above we quote from the New York Tribune, Saturday, November 8, 1920, the following statement by Irving Crane, secretary of the National Association of Clothiers. He says (Rebuttal Exhibit 18): "NEW YORK TRIBUNE"— SATURDAY, NOV. 6, 1920 -"DECLINE IN CLOTHING MAY NOT MATERIALIZE" * * * * "It is also certain that where an appearance of radically slaughtered prices is in evidence it will be of goods that either because of style or fabric have lost the major part of their Intrinsic value and must be sacrificed for imme- diate consumption." FAMILY BUDGETS The employers' brief quotes a number of workers' family budgets. They believe the average should be about $2,000. They believe that the family of a printer ought to be able to live very comfortably on $2,000 a year. Surely, they are familiar with the budgetary study made by tlie U. S. Bureau of Labor Statistics for Washington, D. C, in August, 1919, which is probably the most com- prehensive and scientific budget of its kind. Its purpose iwas to determine the cost of maintaining a family of a Government employe at a level of health and decency. It provides for a budget of $2,262.47. An analysis of this budget foUows herewith. If brought up to date the annual Income of $3,033.23 is necessary to maintain an average working class family at a level of comfort and decency. In explaining the standards by which it was guided in calculating this budget, the Bureau of Labor Statistics makes the following comments on its study (Rebuttal Exhibit 19): "DIFFICULTY OF ESTABLISHING A PROPER .BUDGET LEVEL" Previous studies of the subject have analyzed the con- ception of a budget level and have distinguished several levels. Some of the more important of these are as follows: "(a) The pauper or poverty level. This represents roughly a standard of living just above where families receive aid from charity or where they run into serious debt. "(b) The minimum of subsistence level. — This is based essentially on mere animal existence and allows little or nothing for the needs of men as social creatures. "(c) The minimum of health and comfort level. This represents a slightly higher level than that of subsistence, providing not only for the material needs of food, shelter and body covering, but also for certain comforts, such as clothing sufflcient for bodily comfort and to maintain the wearer's instinct of self-respect and decency, some insur- ance against the more important misfortunes — death, dis- ability and fire — good education for the children, some amusement, and some expenditures for self-development. "The budget herewith suggested is intended to give to the average family, consisting of husband, wife and three children below the .age of 14 years. "(1) A sufficiency of nourishing food for the mainte- nance of health, particularly the children's health; "(2) Housing in low-rent neighborhoods and within the smallest possible number of rooms consistent with decency, but with sufficient light, heat and toilet facilities for the maintenance of health and decency. "(3) The upkeep of household equipment, such as kitchen utensils, t>edding and linen, necessary for health, but with no provision for the purchase of additional fur- niture; "(4) Clothing sufficient for warmth, of a sufficiently good quality to be economical, but with no further regard for appearance and style than is necessary to permit the family members to appear in public and within their rather narrow social circle without slovenliness or loss of self--respect. "(5) A surplus over the above expenditures -which would permit of only a minimum outlay for such necessary de- mands as — "(a) Street car fares to and from work and necessary rides to stores and markets; "(b) The keeping up of a modest amount of insurance; "(c) Medical and dental care; "(d) Contribution to churches, and labor or beneficial organizations; "(e) Simple amusements, such as the moving pictures once in a while, occasional street car rides for pleasure, some Christmas gifts for the children, etc. "(f) Daily ne-wspaper." "THE STANDARD FAMILY" This budget has been worked out for a family consisting of husband, wife and three dependent children — a boy of 11, a girl of 5, and a boy of 2 -years of age. The number in the family and the ages of the children conform closely to the standards used by the Bureau of Labor Statistics and other investigators In the past. The determining factor in selecting the standard family, however, was the fact that a family of this particular size and composition represents actual existing families in the United States. The average number in the white families scheduled by the Bureau of Labor Statistics was 4.9 individuals (equiva- lent to 3.33 adult males), which corresponds very closely with the standard family of 5 individuals (equivalent to 3.36 adult males). The assumption that the three children of the family are, respectively, a boy aged 2 years, a girl aged B years and a boy aged 11 years, if, of course, arbitrdry and is solely for the purpose of making precise calculations as to food and clothing consumption. The children In this standard family are crowing children, not vet able to add anything to the family income, and not so expensive to maintain as they will become a few years later. This standard family is about half way between the family with no children and the family with grown children capable of self-support. "^ "BUDGET OF HEALTH AND DECENCY NOT INTENDED AS AN IDEAL" It needs to be emphasized that the budget level adopted in the present study is in no way intended as an ideal budget. It was intended to establish a bottom level of health and decency below which a family can not go with- out danger of physical and moral deterioration. This budget does not include many comforts which should be included in a proper "American standard of living." Thus no provision is directly made for savings other than insur- ance, nor for vacations, nor for books and other educa- tional purposes. "On the other hand, a family with the items listed in this budget should be able to maintain itself in health and modest comfort. It would have a sufficiency of food, re- spectable clothing, sanitary housing, and a minimum of the essential 'sundries.* '* In taking figures of Washington, D. C, for use in New York, we are in no danger of reaching too high an estimate of family expenditures. If there is any difference, New York's expenses are larger, particularly in the matter of rent. The item in the Washington budget covering hous- ing, fuel and light for a year is $428. It is doubtful whether decent quarters for a family of five can be found in the vicinity of New York for this price. The budgetary study made by the U. S. Bureau of Labor Statistics to determine the cost of living for the family of one Washington employe, shows a total expenditure of $2,262.47. Following are the classified expenditures for the various items of the budget based upon prevailing market prices in August, 1919: Food $773.93 Clothing: Husband $121.16 Wife 166.46 Boy, 11 years 96.60 Girl, 5 years 82.50 Boy, 2 years 47.00 513.72 Housing, fuel, light 428.00 Miscellaneous o46.S2 Total $2,262.47 DETAILED EXAMINATION OF BUDGET Clothing: A detailed examination of this budget shows that the clothing allowance- is to a great extent inadequate. For the husband, there is allowed an overcoat once in four years; and only one union suit for the winter and one pair of pajamas. The clothing allowance for the wife is even more subject to criticism. The Bureau, in fact, realized this by adding a sum of $50.08 to the woman's clothing allowance, which is $166.00 for a year. In explanation of this supplemental list, the report states that the clothing budget has been cut down to what amounts to almost a subsistence budget, and not a minimum comfort budget. It explains that the prices presuppose more time to hunt for good values than the average mother of three children can afford. In addition, she would have to do a great deal of sewing at home. She is allowed no furs, no sweater, no silk stockings, no silk petticoats, no crepe de chine or georgette blouse for evening or afternoon wear; no dress shoes or house -slippers. She has been allowed only one afternoon dress of wool to last two years and no dress petticoat to wear with It, and this is the only garment she has to wear at all social affairs. A wool dress is essentially a business or street dress, being too heavy and sombre for afternoon or evening wear. Only two night dresses a year have been allowed, and this will be insufficient if she has any illne^ during the year. A winter hat has been allowed only every other year, and no allowance has been made for retrimming. Without retrimming it would be out of style by the second year. Miscellaneous : Under this item the budget allows for ITpkeep-^f-ionse, furniture and furnishings ■ $1.75 a week, $70.00 a year Laundry work 2.00 " 104.00 " Cleaning supplies and services.. .63 " 32.12 ** Health— jdoctor, dentist, oculist, medicines 1.53 " 80.00 Amusements, recreation, vaca- tions, etc 40 " 20.00 " Newspapers and magazines 16 " 8.40 " Incidentals 1.00 " 52.00 " For example, for recreation and amusements there is allowed but 40 cents a week. At this rate, it would be impossible for the family to visit the theatre more than once In two months, that is, if no other form of amusement is Indulged in throughout the entire two months. Neither could they visit the movies more than twice a month, if nothing was spent on any other form of recreation. It should be noted that there Is no allowance for a vacation either for the children or the mother. The allowance for the upkeep of the house and furniture — replacement of towels, linens, dishes, utensils, rugs, breakage, etc., is $1.35 a week, which is certainly entirely disproportionate to the actual necessities of a family. The same criticism might be made of the allowance ft health, $1.53 a week, and laundry and cleaning supplies, $2.63 a week. Sixteen cents a week will hardly suffice for newspapers and magazines. One evening paper a day alone amounts to 18 cents a week. If one bought a morning paper in addition to an evening paper, more than twice the sum allowed would he required for this item. It should also be noted that no allowance is made for the education of the children, or the adult members of the family, including such items as music lessons, school ex- penses, lectures, books and magazines. Taking this budget as a standard — despite its manifold deficiencies — we find that in August, 1919, it called for an annual expenditure of $2,262.47. The cost of living sinci' that time has increased about 22 per cent. (See Monthly Labor Review, September, 1920, page 78.) (Rebuttal Ex- hibit 20.) This would bring this budget up to $2,760.21. Savings: The budget as it now stands makes no pro- vision for savings. It Is, however, essential for the well- being of every family, that the salary be large enough to allow for some savings every year. Every family must b» prepared to meet some unexpected emergency, such as unemployment or long sicknesses, which may involve one, two or moi^ members of the family at the same time, such as occurred so frequently during the recent infiuenza epi- demics. No definite estimate can be made as to the amount which a worker should be expected to save. The Bureau of Labor Statistics budgetary study estimates that 12% per cent, of a person's yearly salary would seem to be the maximum which could be expected. Allowing for a saving of only 10 per cent., there must be added to the budget a sum of $276.02, which would bring the total up to $3,036.23. And this figure, in the words of the Bureau itself, by no means represents the idfeal budget. "It is intended to establish a bottom level of health and decency below which a family can not go without danger of physical and moral deteriwation." It has been estimated that the compositors do not work more than 46 weeks during the year. There are ten holi- days on which they are not employed and for which they are not paid. This does not include the time which may be used for vacations. . Calculating the annual earnings of the printers on the . basis of their present scales of $45.00 per week, we have then $2,070.00 per year. By, comparing this sum with the budgetary allowance as brought up to date, based on the calculations of the tJ'. S. Bureau of Labor Statistics in its Washington study, we find that the printer falls short $966.23 per year. If the workers are not allowed a substantial increase their annual earnings will continue to be below the min- imum health and decency standard, which, according to the statement of the TJ. S. Bureau of Labor Statistics, the family of a worker should at least maintain. Typographical Union No. 6 is asking for a wage increase (day work) of $18. This would amount to $63 per week. Taking 46 weeks per year as the total employment of the printer engaged in the book and job branch, his annual income will amount to $2,898, or $138.23 short of the min- imum income needed by the printer to maintain his family at the standard as shown by the Bureau of Labor Statistics. Dt. Kirchwey — May I interrupt long enough to ask whether you are proposing later on to make any explana- tion of the fact that the Jobbers do not work more than 46 weeks during the year? Mr. Rouse — Well Dr. Kirchwey — I desire, either now or later on, to ascer- tain to what this loss of six weeks per year Is due, and whether, in many instances, it may reach a larger .loss. Mr. Rouse — ^It would, as I have stated previously, doctor; the seasonableness of the industry — everybody in New York knows that the summer months are the dullest, months of the year, and then, in the holiday season — after the holiday season there is another period that is seasonable. Dr. Kirchwey — That is a slack period? Mr. Rouse — A slack period. Now, then, under the scale provisions, it calls for ten holidays, and these holidays the men lose those ten days. That means that their wages jare docked for those days, and then it frequently happens that the men will work five days and then ' they will be off on. Saturday, it frequently happens— -fiuctuatioff of work. Dr. Kirchwey — Taking a day off on their own? Mr. Rouse — No; with the employer and the men agree- ing to the closing down on Saturday, may be a fiuctuation of work in the book and job industry. They may lose a day here and a day there, and it will average about 46 weeks that they will work per year, and that is a very high average, I might say, generally speaking. Dr. Kirchwey — I understand that it is that; but indeed, I' was surprised to find that the average was so high, but still I thought it ought to be accounted for during the slack season following the holidays, and in mid-summer. You mean only that the time is shortened, as, for example, giving the men the whole of Saturday off instead of a lialf holiday — they have no half holiday now. Mr. Rouse — We have a universal holiday through the months of June, July and August. 35 Mr. Brower — A half holiday? Mr. Rouse — Half holiday during the months of June, July and August, and they work what is known as an S%-hour day. Dr. Kirchwey — You have that half holiday at the ex- pense of the employer? (Mr. Rouse — That is, we make up the 48 hours within the five days. They work 8% hours for five days; it frequently happens on iPriday night that they will close for Saturday, it frequently happens by mutual consent. Dr. Kirchwey — Because there is not work enough? Mr. Rouse — No; the work will slow up, and by mutual consent between the parties, they agree to close on Satur- day. Dr. Kirchwey — Which is the way in which the slack season operates, you mean? Mr. Rouse — It may happen at other times, too. It Just depends on the condition of the work in that particular office. It may be that one office may be going at full swing, and yet another office may be slack, this particular week, and then it will vary. Dr. Kirchwey — What I am not clear alrout yet is, how the slack season operates. I became, a few years ago, very familiar with the operations in the women's garments trades; there the slack seasons cover about one-half the year. Mr. Bouse — Well, ours has not been so pronounced. Dr. Kirchwey — Yours is not so pronounced? Mr. Rouse — Not so pronounced, no. » Dr. Kirchwey — But during the slack season, in these in- dustries, at the time that I was familiar with them, the great body of the workprs were laid oflC for weeks at a stretch. That does not happen? Mr. Bouse— That does not happen. Dr. Kirchwey — Then, during the slack season in the print- ing trade Mr. Rouse — No. You see our contract — to some extent it does. There may be some that would be laid off indefinite- ly; but our contract has provisions in it that permits the employer to arrange for what we term "slides." A man may get one day; and then it goes around in rotation, and take a day off, so that they will try to keep as many work- ing by "sliding" them a day, and so forth. We have all of those provisions in the contract, and it is the purpose to keep as many at work as possible, rather than breaking up — well, what you might call the working force of that par- ticular office. Now, then, the union, to take care of that, maintains what is known as an out-of-work fund, from the 15th of June to the 15th' of September. We have to pay an unem- ployment benefit during that period, lath of June to the 15th of September, providing for any emergency that may arise by these various things that are apt to arrive at any time. THE ECONOMIC CONDITION OF THE INDUSTRY The second of the two basic factors governing these pro- ceedings. The employers endeavor, by argument and ex- hibits, to draw a sad picture. But the data secured and herewith presented by Typographical Union No. 6 presents a much happier view. Indeed, one would be warranted in calling It "roseate." . We believe the data gathered and presented hy Typo- graphical Union No. 6 will convince the Arbitrator that the employers are in a position to meet any increase awarded by him. The data to be submitted should be convincing as to the prosperity enjoyed in the printing industry. The data to be submitted to you, Mr. Arbitrator, by Typographical Union No. 6, illustrating the economic con- dition of the printing industry in New York, will no doubt be startling, in face of the statements submitted by the employers. , i In addition to this, the employers composing the book and Job branch of the industry in the City of New York are granted privileges and exemptions from the laws of the union not enjoyed by members of the industry in the news- paper branch. ' What the newspaper publishers themselves think about this matter may be best demonstrated by a few excerpts from the late arbitration proceedings. On June 8, 1920, a decision by William B. Kelly, County Clerk of the Borough of Bropklyn, acting as arbitrator in the wage scale proceedings between the Publishers' Associa- tion of New York City and Typographical Union, resulted in making the wages of the newspaper printers within the Jurisdiction of this union $55, $58, and $61, respectively for day, night and midnight shifts. This was an increase of $11.00 per week on all shifts. The award was retroactive to April 1, 1920, and will continue in force and effect until March 31, 1921, when the present contract will expire. Throughout the discussions in this controversy before the arbitrator, the publishers directed attention to the difEeren- tial In wage scales between the two branches of the indus- try and were loud in their complaints as to the many ad- vantages enjoyed by book and job proprietors compared with those of the publishers. A^ illustration of the attitude of the Publishers' Associa- tion of New York toward the book and job employers of New York may be somewhat Illuminating for the present arbitrator. On page 93, "Arbitration Proceedings and the Findings and Award of William B. Kelly, Arbitrator, In re Typo- graphical Union No. 6 versus the Publishers' Asso- ciation" (Rebuttal Exhibit 21), Mr. Polachek for the Pub- lishers* Association says: "The publishers answer that the only reason for the differential between the newspaper scale and the book and job scale was the fact that the printers had not secured sufficient union control of the book and job business. They had had control, and they have now control, of the news- paper business, and they were always able to get from the publishers a fair living wage when they were not able to get a fair living wage from the book and job trade. And now that they are thoroughly organized In the book and job trade and they have full control of the trade, there is no valid reason why this differential should be maintained. It was never a differential business of the character of work done, the' only reason was that they could not get the wages, hours and conditions in the book and Job trade because they were not sufficiently strong in their organiza- tion, and the publishers were always fair and always gave them control of their composing rooms, and always wanted to pay a good living wage." The publishers are paying, and the newspaper printers, members of No. 6, are now receiving, $55, $58 and $61 respectively for the day, night and midnight shifts. Mr. Polachek, for the publishers, points out the discrep- ancy between the two branches of the industry and refers to the what might be termed paradoxical conditions exist- ing in those branches, to wit. that while certain Inter- national Union laws are strictly enforced in the newspaper offices book and job offices are exempt. Again, that while the newspaper situation holders are guaranteed steady situations the book and Job printers have no such guarantee. Again, while newspapers are prac- tically the same the year round, book and job work is more or less of a seasonal nature and perforce employs less help at some seasons of the year than at others. In connection therewith, Mr. Polachek, for the publishers, had this to- say (Page 25, Rebuttal Exhibit 21) : "The weekly situation bolder is guaranteed steady work in his contract (see Sections 21-36). The job printer has no such contract guarantee. By all the rules of wage adjust- ments, those who have not the opportunity of continuous employment receive the higher unit of wage, whether paid by the hour, day or week. "To maintain two wage scales in the printing industry — one for newspapers and one for book and job offices — ^Is an unwarranted inequality and causes unfair competition. This condition is particularly unjust since the same union makes both scales and is res[)onsible for the continuation of this condition year after year. Under the book and job scale magazines, periodicals, catalogues, booklets, circulars and pamphlets are printed, all of them making advertising ap- peals to the public in direct competition with newspaper advertising. This competition is familiar to every news- paper advertising solicitor, who has to meet it daily. It Is keenly felt by all members of the Publishers' Association." On page 27 of the same exhibit Mr. Polacheck says: "That the newspaper branch of the printing industry by the ordinary rules of wage adjustment should be less than the book and job scale, on account of constant employ- ment, and three hours less of day production. "That the burden of the proof is upon the union to show why newspapers should pay more than their competitors in the book and job branch. "That for the union to maintain two wage scales in the same industry in New York City is an unwarranted ine- quality. ' ' On page 44 of the same exhibit, in referring to the con- ditions existing in the two branches of the industry, and in substantiation of the marked advantages the book and job employer enjoys over that of the newspaper employer, Mr. Polachek says: "Now, let us look at the International law, which is not found in the book and Job scale, even though it applies to all members — the priority law. We plead not so much the injustice of the law as the rank injustice of its application. We will explain what this law means. "In newspaper offices there are regular situation holders, paid by the week, the weekly minimum wage. The old- est employe has first or prior right to his regular weekly situation, and so on down the line In the order of their enrollment on the waiting line. These extras work for regulars when they desire to lay off, and they also do extra work for the office. "Having explained the operation of the law we come to the point. When a newspaper publisher needs a man he must get him from the line in order of his priority. A new employe, no matter how competent, must start at the bottom of the sub line. "Not so in the book and job offices: They can get printers wherever they please. No restriction of any kind except that they must be members of No. 6. They can put them at any kind of work— assistant foremen, "make- up men. machine compositors and proofreaders or as other department heads in the composing room, which means wherever the foreman or employer desires to place the new employe. "Newspaper publishers must observe priority and try to find for their own offices those men of adaptability, S6 MtlsfMlorll""" ^^'" '"'° ""'' *" *** various positions •'No restriction for securing employes hamper the efficiency of the book and Job office." On page 45, same exhibit, Mr. Polachek had this to say: "That for this union to maintain two wage scales In the printing industry in New York City is an unwar- ranted inequality. "That book and Job offices are strong competitors of the newspapers in the advertising field, " which Is the source of the newspaper's greatest Income, and that a difference In wages between the two branches of the in- dustry places the newspapers at a disadvantage in Its competition for advertising which disadvantage is caused entirely by this Onion maintaining two different wage scales. "Furthermore, we have shown that the Newspaper Pub- lishers are hampered, penalized and restricted by this same Union by a number of provisions in this contract which do not appear in their contract with the book and Job publishers, or if you please, we have shown that the book and Job publishers have been given many preferences which this same Union does not grant to the Newspaper Publishers." The allegations enumerated in the above extracts from the brief submitted by the Publishers to the arbitrator are substantially correct. Members of the Union working on newspapers enjoy a much greater guarantee for steady employment than do their brothers in book and Job offices. Again, book and Job employers are enjoying superior advantages over their competitors in the newspaper branch by virtue of the exemption of those restrictions In the employment of help that newspaper employers are bound to live up to. Despite these facts, the newspaper printers are receiv- ing a weekly wage of $55, $58 and $61 respectively for day, night and midnight work, as against $45, $48 and $51 for book and job printers. Dr. Kirchwey — Have you ever answered that indictment brought against your Union? Mr. Rouse — We expect you to give the answer, Doctor. (Laughter). I call to your attention at this time, marked Union's Exhibit No. 21-A, paragraph IS, paragraph 9, and, particularly, paragraph 21, which reads; "In re- ducing force foremen can not lay oft regular employes until the end of the fiscal week." The book and job employer has the right to lay off an employe at any time, without any regard to the time of the week in which the lay-off occurs. Dr. Kirchwey — I do not understand that I am expected to remedy all of those inequalitips. am I? Mr. Rouse — So far as the wages are concerned. We call your attention to Sections 27 and 28, and to Section 36. The Ijook and job employer, as very well stated by Mr. Jennings this morning, a member of Typographical Union No. 6, when he said that he paid $55.00 per week, because of productivity — the book and job employer can select his men from any that he wants to, and he gets the cream of the profession, and as they are today, that is, no •testrictione on where they come from. The only restriction Is that they are members of Typographical Union No. 6. They have the right of laying them off, to reduce the force at any timp; no restriction whatsoever in employment is placed upon them by the organization; and I present this contract marked Exhibit 21-A, sub- stantiating our statement, and state that at this time there nre 2.5O0 members of our organization working under that agreement. In contradistinction to the arguments submitted by Em- ployers as to the economic condition of the industry with its possible influence on the mind of the Arbitrator, we submit herewith a table of some notable increases granted during the months of July, August, September, October and November, 1920, to wit (Rebuttal Exhibit 22) ; JULY 1, 1920, JOURNAL Night Day Increase Schenectady, N. Y $40.00 $37.00 $14.00 Johnstown, Pa .. 35.00 7.00 AUGUST, 1920, JOURNAL Night East Liverpool, O Springfield, O Brownwood, Texas Uniontown, Pa 42.00 Austin, Minn Butler, Pa Idaho Falls, Idaho SEI'TEMBER, 1920, JOURNAL Night Laporte. Ind Prescott. Ariz Niagara Falls, N. Y Cliicago, 111 Day Increase $40.00 $16.40 40.00 11.00 32.50 8.50 S8.00 16.00 33.00 11.00 38.00 8.00 42.00 15.60 ^AL Day Increase $35.00 $11.00 45.00 9.00 39.00 9.00 51.00 5.00 OCTOBER, 1920, JOURNAL „ , „ Night Day Increase Roanoke, Va .. $35.00 $12.00 Spokane, Wash . . 42.00 4 BO Norwich, N. Y 30.00 bIoO New London, Conn . . 33.00 5.50 Winnipeg, Man 47.00 44.00 9.00 Indianapolis, Ind , . 44 00 8 00 St. Catherines, Out 34.00 3l!oO 7!oO Austin, Texas 40.00 le.oo Parkersburg, W. Va .. 37.00 11.00 Sedalla, Mo 35.00 ii.oo Ithaca, N. Y 33.00 14.00 Baker, Ore . . 42.00 9.00 Sydney, N. S .. 32.00 7.00 Salem, Ore ,. 42.00 6.00 L«wiston, Mont . . 45 00 7 50 Wheeling, W. Va .. 4l!oO 7!oO Norfolk, Va . . 39.50 19.34 Hackensack, N. J 44 00 14 00 Grand Forks, N. D 43.00 40.00 6^00 Louisville, Ky . . 38.OO 8.00 Ada, OkIa .. 35,00 9.00 NOVEMBER, 1920, JOURNAL Night Day Increase St. Louis, Mo . . $44.50 $6.50 Shreveport, La . . 40.00 10.50 Mount Morris, III . . 40.00 7.00 New Rochelle, N. Y . . 46.00 12.00 Perth Amboy, N.J . . 45.00 10.00 Newcastle, Pa . . 45.00 12.00 Petersburg, Va . . 35.00 8.00 Newburgh, N. Y . . 39.00 6.00 Los Angeles, Cal . . 42.00 6.00 Denver, Col . . 45.50 6.50 Mitchell, S. D . . 38.00 8.00 Loveland, Col . . 40.00 5.00 Sapulpa, Okla . . 45.00 lO.OOl Bkireka, Cal 42.00 39.00 6.00 Hagerstown, Md . . 35.00 8.00 N. Y. Polish 59.00 57.00 24.00 Mount Vernon, 111 .. 33.00 8.00 Springfield, Mo , . . . ' . . 40.00 16.(i0 Joliet, 111 .. 43.50 8.60 Oarbondale, Pa . . 37.00 7.00 Chico, Cal 45.00 42.00 9.00 Escanaba, Mich . . 32.00 7.00 Hazelton, Pa . . 31.00 5.00 San Francisco, Cal 49.00 46.00 7.00 Cincinnati, . . 46.00 10.00 In connection with the above, we respectfully submit an extract from "The Industrial Education Survey of the City of New York." page 18, published in 1918 (Rebuttal Ex- hibit No. 23): "As printing is naturally a city industry, it follows that our largest cities should lead it. The position, however, which New York has gained is almost startling. Over one- fourth of the printing and publishing produced in the United States in 1914, according to the census, was done in the five boroughs of New York City. Of the various industries o( the city, only the clothing industry surpassed it in value of product. "Some idea of the extent of printing and publishing in New York may be gained by again referring to the census figures for the year 1914. The industry represented in that year 2,650 establishments and 68,540 persons. In salaries and wages together there was paid out in that year ap- proximately $76,955,000. The capital invested totalled $155,587,228, while the value of the combined product of the printing and publishing trade amounted to $215,570,954, a value reckoned at one-twelfth of the output of the print- ing and publishing establishments of the world. Indeed, in the value of output. New York is said to exceed London, heretofore the world's greatest printing city. "This includes bookbinding and blank book making, en- graving steel and copper plate, plate printing, lithographing book, jbb, music, newspaper and periodical printing and publishing." Just think of it, Mr. Arbitrator! One-twelfth of the printing of the world done right here In New York. And, still more startling, one-quarter of all the printing of the United States done here in New York! New York the premier city of the world in the printing industry ! But how about wages? How about the premier when it comes to the wage scale? We refer you again, Mr. Arbitrator, to the above table, to wit; Prescott, Ariz., $45.00; Winnipeg, Man., $44.00; Indian- apolis, Ind., $44.00; Hackensack, N. J., $44.00; New Roch- elle, N. Y., $45.00; Perth Amboy, N. J., $45.00; Sapulpa, Okla., $45.00; N. Y. Polish, $57.00; San FVancisco, Cal., $46.00; Cincinnati, 0., $46.00; Denver, Col., $45.50; St. Louis, Mo., $44.50; New Castle, Pa., $45.00; Chicago, 111., $51.00. Premier, indeed! Chicago, San Francisco, Cincinnati, receiving a higher scale than New York. Hackensack, N. J., $44.00. 37 And, ye gods! New Koehelle and Perth Amboy, $45.00. Premier, indeed! Consider the cost of living, Mr, Arbitra- tor, in Hackensaek, New Rochelle and Perth Amboy, with that of the printers in New York. Take most of the cities enumerated. Printers live within walking distances' of their places of employment. No oar fares, home for lunch. Infinitely less time consumed in coming from and going to their places of employment. Less speed necessary. Less nervous strain. Less everything except money. And New York (excuse the smile), the premier city of the printing industry! As illustrative of the enviable position of our employers relative to wage increases as compared with other indus- tries, we submit a chart of the comparative wage increases, September, 1914, to March, 1920, of ten leading American Industrips. This chnrt disclosps that of tlip ten It-ading American industries the printing industry paid the smallest percentage of increase. Obversely then, the printing indus- try — our employers — in paying a less percentage of increase in weekly wages than the nine other industries enjoyed financial advantages not vouchsafed the other nine indus- tries. (Rebuttal Exhibit 24.) We introduce the chart, also the book it was taken from. "Percentages of Increase from September, 1914, to March, 1920, in hourly and full time weekly earnings for specified industries — all occupations (1). "From this diagram it is clearly discernible that the workers in the printing and publishing industry fared ill compared with tlie workers in the other industries under consideration, both as to full-time weekly and hourly earn- ings. While the workers in the silk industry had during this period achieved an increase of 182 per cent, in their average hourly earnings and 163 per cent, in their full time weekly earnings, and while the workers in the hosiery and knit goods, wqol, cotton, and leather industries had increased their hourly earnings by over 170 per cent, and their full-time weekly earnings by over 135 per cent. — the workers in the printing and publishing trades had increased their hourly ea rni ngs by but 96 per cen t and their full- time weekly earnings by 85 per cent. Thus the increase in their full time and hourly earnings was about half of that obtaining in the silk industry and a little less than half in four of the other industries under consideration. Of the ten industries investigated, the increase in their hnurly rntes is the lowest and in their full-time weekly rates next to the lowest.'* Recent additions made or contemplated to plant equip- ment in New York reflect the ability of the printing indus- try to make wage increases. t The following is only a partial list of the plant invest- ment of local printing firms during the past few months: Collinson & Klingman, Inc., have purchased a six -story building at 301 Adams street for occupancy, to be re- modeled. (The American Printer, 5 Aug., 1920. Rebuttal Exhibit 25.) Jacob Mousky, owner of the Herald Press, New York City, has recentlly purchased a - plot of ground at 313-21 West 37th Street, The plan is to erect a large building for use as a printing plant. Land and building will cost $650,000. (American Printer. Sept. 20). Street and Smith have completed a new seven-story brick and concrete addition on Seventh Avenue and 15th Street. (Printing. 25 Sppt.. 1920). J. C. & W. E". Powers, Inc., 65 Duane Street, have enlarged and improved their composing room. (Printing, Sept. 25). The Irving Prpss. Inc.. has purchased the fo,ur-story building it occupies at 119-21 E. 31st Street. (Printing, Oct. 9). The follnwiuff firms that have recently installed Miehle Presses are: Dispatch Company. 2; Home Pattern Company, 1; Isaac H. Blanchard, 1; Brieger Press, Inc., 2; Oberly & Newell, 1; The Nation Press, I. PRINTINC, Nov. 13, 1920— pasp 53. "Hurst & Hurst Take More Space." "In order to give the best of service to their customers, as well as to take care of their rapidly increasing busi- ness. Hurst and 'Hurst, Inc., of 357 West 36th St., New York, have taken another floor in this building. This added space will enable the firm to adequately house the new equipment that has already been installed, as well as other additions which are contemplated. "A new Babcock and a new Kelly press have been se- cured, as well as a linotype machine, while the firm has doubled its equipment of type, which has been secured from the American Type Pounders Company. New auto- matic proof presses and a Miller saw also are included in the new equipment. The firm also has secured a new auto car whiph vpill be used for delivery purposes. "Tlie company specializes in ad composition, but will take up publication work. Hurst & Hurst were established In 1910 and the officers are: President, Max Jones; vice- president and secretary, Clarence R. Hurst and treasurer, Samuel Hurst." (1) "Changes in Wages during and since the war.' Rep. No. 31. N. I. C. B., page 3. Res. PRINTING. Nov. 13. 1920— pflKP 5S. "Advertype Company in New QuaHers. "The Advertype Company^ is now located at 245 West Thirty-sixth Street, having moved from 141 West Thirty- sixth Street, New York. In its new home the company has 1,000 square feet more than in its former location and this will enable the firm to give a greatly increased service. ■•A brand new stock of type faces has been added to the equipment of the plant. This includes the following: Caslon 471 witli italics, Gaslon 540 with italics. New Cas- Ion with italics, Goudy with italics, Goudy bold and modern, Cloister with italics. Bookman with italics, Chel- tenham bold with italics, Scotch Roman with italics, Bodoni bold with italics, Century bold. Century standard, Gothic No. 8 and all fancy initials. Six new cases also have been installed. "The Advertype Company was established in 1919 and specializes only In ad. composition. The oflacers are: President, Charles J. Brodle; secretary, William Bittel, and treasurer, Max Epstein. PRINTING, Nov. 13. 1920— page 58. "Patteson Press Making Improvements. "Several Improvements are being made in the plant of the Patteson Press, Inc., of 441-447 Pearl Street, New York. Workmen are now installing a new Miehle cylin- der press. A new Mergenthaler linotype machine also has been ordered and is expected in the near future. The firm was established In 1891 and engages in book and Job printing. The officers are: President-treasurer, Edmund Wolcott; vice-president and secretary, Thomas English." PRINTING, Nnvpmber 13. 1920— page 60. "Von Sfllzpn and Schoh. job printers, of 259 William Street, New York, have ordered a Miller feeder and ex- pect to have it installed in a short time." "The Imnerial Engraving Company, of 424 West 33rd Street, New York, has placed an order for a new Miehle press. It is expected that it will be installed in a short time." "Two No. 5-0 Miehle presses have been ordered by Brownworth & Company, of Brooklyn." "The Tanney Printing Company of 260 West 42nd^ Street, New York, has ordered a new No. 1 Miehle press."' "Work is being completed on the installation of ten new two-color Miehle presses in the plant of the Butter- ick Publishing Company, 223 Spring Street, New York," "Edward S. Benedict, of 84 John Street, New York, has installed a complete 12 by 18 Miller Unit." Butterick has installed five 2-coluran Miehle presses. There are five more on order which will be erected as soon as possible. (Printing, October 9). LaPlante and Dunklin have moved into a model plant at 547-549 Greenwich Street owing to the great increase in the volume of their business. (Printing. October 9), The following firms have recently moved into greatly enlarged quarters in the buildings noted: Bartlett-Orr Press, 33rd St. & Sth Ave.; Rogers Press, 33rd St. & Sth Ave.; McGraw-Hill Co., Inc., 10th "Ave. & 36th St.; Eilert Press Ptg. Co., 318 W. 39th St.; Charles Francis Press, 461 Sth Ave.; Stilson Press, 461 Sth Ave.; Isaac Goldman Company, SO Lafayette St.; Wynkoop- Hallenbeck Co., 80 Lafayette St.; Periodical Press, 80 Lafayette St.; Knox Printing Co., 140 , Lafayette St.; Hamilton Press, 93 Pearl St.; Pictorial Review Company, 39th St. and 7th Ave.; Anchor Press, 209 W. 3Sth St.; Carey Printing Co., lOth Ave. & 36th St.; Conwav Print- ing Co., 416 W. 33rd St. The printing machinery business is also expanding. The following are indications of the state of business and future plant investment: "The demand for Miehle presses is very active, accord- ing to Frank Ball, a representative for the Miehle Print- ing Press and Manufacturing Co., with offices in the Woolworth Bldg., 233 Broadway, New York. Although business during July and August was slow, it now seems to be on a very satisfactory footing." (Printing, Oct. 9, 1920). The Lithograph and Printing Equipment Company moved to 17 Rose Street last fall, thinking the new quarters would last them for life. In May they were compelled to move into larger quarters at 230 West 17th Street. (National Lithographer, July, 1920, page 2S). Philip Wolf, dealer in machinery and equipment for printers, has bepn compelled to move from 264 William Street to 68 Beekman Street, on account of the growth of his business. (Printing, 23 Oct., 1920, page 36). These plant additions and improvements would obviouslv not be made if (1) These firms were not in a prosperous financial condition. (2) The business outlook for the printing industry was not favorable. These plant additions pre-suppose an ability to meet the burden of increased wages. (1) It may be assumed tliat in planning for the fu- ture printing firms which have made plant additions have also mndp allowances for wagp increases, for (a) The human element in any business has obviously the prior claim to plant in the distribution of surplus, and (b) Tbe officers of these firms have known that de- mands tor wage increases would be forthcoming. NEW YORK TIMES. November 20, 1920. page 21. "LINOTYPE PROFITS SHOW 50% INCREASE. "Mergenthaler Company's Report Announces Profits equal to $18.99 a share. "The report of the -Mergenthaler Linotype Company for the fiscal year ended Sept. 30, 1920, shows net profits amounting, after deductions for depreciation and taxes, to ?2,430.731. This was the equivalent of $1S.99 a share earned on the $12,SOO,000 capital stock and compared with $12.76 earned In the preceding year." (Rebuttal Exhibit 25-a). The small and decreasing number of failures in the printing industry indScates a state of business prosperity. During October, 1920, the printing industry showed a smaller number of failures, with two e.iceptions, than any other of the 14 industries listed' in Dun's report. The following are the figures for the month of October: Clothing and millinery, 77; machinery and tools, 26; Inmber, carpenters and coopers, 24; milling and bakers, 24; haberdashery, gloves and furs, 20; leather, shoes and harness, 10: chemicals and drugs, 6; iron, foundries and nails, 5; cotton, lace and hosiery, 5; liquors and tobacco. 3; printing and engraving, 3; glass, earthenware and brick, 2; paints and oils, 1, In the same months the total liabilities of printing concerns which had tailed were less, with two exceptions, than in any other industry. The following table gives the figures: Lumber, carpenters and coopers, $3,845,066; iron, foun- dries and nails, $2,585,889; machinery and tools, $2,562,- 142; clothing and millinery, $1,524,332; milling and bakers, $956,467; hats, gloves and furs, $731,615; chemicals and drugs, $73,705; cottons, laces and hosiery, $250,398; leather, shoes and harness. $73,705; liquors and tobacco, $62,446; printing and engraving, $44,037; glass, earthen- ware and brick. $28,000. The figures for October for the past four years show that failures in the printing industry are becoming fewer. Following are the fienres: 1916, 15; 1917, 9; 1918, 6; 1919, 6; 1920, 3. (Dun's Review, 6 Nov., 1920, p. S.) Rebuttal Exhibit 26. As a still further confirmation of the prosperous condi- tion of the printing industry in the City of New York, we submit the following communication from the Typo Mercantile Agency — (Rebuttal Exhibit 27). "THE TYPO MERCANTILE AGENCY, (Seneral Offices: "438 Broadway. New York. November 26. 1920. "New York Typographical Union No. 6, "New York. N. Y. "Attention of Mr. Theodore F. Douglas. "Gentlemen: "Replying to your letter of inquiry of the 23rrs show. July. 1920. rate one time. $5.13. October 28. 1920. one time. $5.75. a Jump from April 1. 1920. of $4-50 to $5.75. It reminds me very much. Doctor, of that sign we sep in the barber's shop— "Going, going, gone!" A.nother one from th** Churchman, about classified ad- vertising, nnd the Jeweler^ Circular, with the increase of 100 per cpfxt per word. Heavy type, 5 fenfs a word; heavy type. 10 cents a word. Dr. Kirchwey — All of this is part of the exhibit? Mr. Rouse — This Is part of that, but is a special demon- stration. I will now read the list of publications. Dr. Kirchwey — Perhaps you had better keep them to- gether. Mr. Rouse — (Reading) : LIST OF PUBLICATIONS SHOWING PERCENTAGE INCREASE IN LINE AND INCH AND PAGE RATES BETWEEN FEBRUARY AND NOVEMBER, 1920. Li^;^e and Inch rate 1920 Page rate 1920 % of % of February November Increase February November Increase American Machinist - No rate given .. $135.00 $150.00 11 Argosy $1.75 $2.50 42 350.00 500.00 43 Auto Dealer cmd Repairer *10.80" 13.50" 25 144.00 180.00 25 Automobile Topics No rate given . . 115.00 140.00 22 American Gentleman , No rate given . . 60.00 100.00 67 American Exporter , 25% above rates given . . 400.00 500.00 25 Adventure ' -70 1.00 43 150.00 220.00 47 American Weekly 3.00 4.50 50, No rate 8,000.00 A rts and Decoration 32 No rate . . 160.00 300 00 87 Boys* Life 75 1.00 33 500.00 68o]oO 36 Coat Age No rate given .. 100.00 150.00 50 Cosmopolitan 8.00 9.00 12 3,400.00 3,800.00 12 Current Opinion 50 .60 20 100.00 120.00 20 Chot jjo rate given Clothier and Furnisher No rate given . . 75.00 100 00 33 Childrens' Costume Royal No rate given . . 150.00 20o!oo 33 Delineator 6.25 8.50 36 4,350.00 5 400 00 24 Designer 2.00 4.23 112 1,450,00 2 700*00 86 Dramatic Mirror 3.40 4.25 25 125.00 150.00 20 Electric World No rate given . . 125.00 175 00 40 Engineering News Record No rate given . . 136.00 170 00 '>5 Electric Mechandising No rate given . . 150.00 200 00 33 40 LIST OF PCBUCATIONS SHOWING PERCENTAGE INCREASE IN LINE AND INXH AND PAGE RATES BETWEEN FEBRUARY AND NOVEMBER, 1920 (Continued) Line and incli rate 1920 Page rate 1920 A % Of February November Engineering Mining Journal No rate given Everyday Engineering ' -29 .43 Field and Stream ; -67 .95 Forest and Stream .65 .75 Film Fun 25 .50 Fashionable Dress ' .36 .60 Good Housekeeping 6.00 6.00 Golf Illustrated '.'.'.', .30 .35 Gentlewoman 4.50 6.00 Harper's Basaar !'.!!!!! No rate given House and Garden i No rate given Hardware Age No rate given Hearsts n.OO 3.50 Haberdasher •J.OO" 4.00" Home Bonk of Fashion '.'.'., 1-00 1.50 Home Embroidery Book .50 .50 Illustrated Milliner No rate given Illustrated Companion 125 1.50 Iron Age * 1.50" 5.75", Judge 1.50 2.00 Jewelers' Circular '4.50" 5.00" Literary Digest R.75 9.00 Liberator 'o.OO" 7.00" McCalls S.OO 9.00 McClures 2.50 3.50 Marine Journal No rate given Metal Industry No rate given Metropolitan '. 2.50 3.00 Millinery Trade Rez' No rate given Motor Boating No rate given Motor World No rate given Moving Picture World No rate given Music Trades '^.00" 6.00" Motion Pierre Classic 75 1.35 Motion Picture Magazine 1.50 3.10 Moving Picture Stories 30 .45 Mechanical Engineering No rate given Motor Boat No rate given New York Medical Journal No rate given New York Clipper No rate given People's Home Journal i.SO 6.00 Pictorial Review 11 .00 13.00 Popular Science 2.00 2.40 Power No rate given Physical Culture 12S 1.50 Printers' Ink 'T.OO" 7.70" Picture Play Magazine 1.25 1.90 Playthings No rate given Printing No rate given Quarterly Fashion Book No rate given Record and Guide No rate given Radio News 20 .40 Railway Age No rate given Scientmc American 1.00 1.00 Spur 40 .50 St. Nicholas 1-35 1.50 .Shadojuland 35 .70 Survey 20 .25 Town and Country 80 .60 Travel ^ =><> -22 True .'itory Magazine oO .To Tobacco Leaf No rate given Vanity Fair , . No rate given Vomie l-7o No rate Variety "i-^" *-90" Yachting "S-SO" 4.20" •Indicates the rate per inch, all other rates quoted denote line rate. % of Increase 48 42 15 100 67 20 16 33 16 50 20 28 33 11 33 40 12 40 26 80 106 50 '9 IS 25 20 10 52 166 2.5 11 100 25 8 50 %0t February November Increase 120.00 160.00 25 120.00 180.00 50 275.00 400.00 45 260.00 321.75 24 100. tfo 200.00 100 250.00 400.00 60 2,000.00 2,500.00 25 150.00 200.00 33 2,520.00 3,360.00 41 800.00 1,200.00 50 350.00 650.00 87 124.00 145.00 17 1,800.00 2,000.00 11 100.00 130.00 30 500.00 800.00 60 200.00 250.00 25 100.00 125.00 25 727.50 989.40 36 88.00 128.00 45 630.00 840.00 33 85.00 100.00 ' 18 3,000.00 4,000.00 33 90.00 100.00 11 6,000.00 6,500.00 8 '1,445.00 2,000.00 38 70.00 100.00 43 41.67 60.00 44 1,400.00 1,700.00 21 150.00 200.00 83 150.00 200.00 33 125.00 160.00 28 90.00 130.00 44 150.00 176.00 17 300.00 600.00 100 600.00 1,300.00 116 90.00 , 168.75 87 88.00 115.00 , 30 90.00 120.00 33 60.00 75.00 25 125.00 160.00 1 20 3,600.00 4,000.00 11 8,250.00 10,000.00 21 750.00 1,000.00 33 150.00 175.00 16 400.00 500.00 25 90.00 100.00 11 500.00 700.00 40 70.00 90.00 28 30.00 40.00 33 2,400.00 4,000.00 67 56.00 80.00 43 88.20 175.00 99 150.00 225.00 50 500.00 600.00 20 250.00 300.00 20 200.00 250.00 25 150.00 300.00 100 70.00 90.00 29 280.00 320.00 14 225.00 KO.OO 11 200.00 300.00 50 80.00 125.00 56 500.00 750.00 50 1,000.00 1,200.00 20 225.00 350.00 55 90.00 110.00 22 Circula- tion Feb. 1920 Adventure 146,083 Argosy «8.810 Boys' Life 84,1?7 Current Opinion 37,683 Cosmopolitan ^•^'^^'nn Everyday Engineering 43,000 Field and Stream 60,584 Forbes .'. 19.695 Forest and Stream 41,375 Harpers' ?2'2?? Hearsts' «2,61o House and Garden 2 'fsS 7„rf.f.„d.„* ............. ^87 908 iS'/::; «7,425 ij^f*- ■.'.■■.•.••.:;: 2^;^? GENERAL Circula- tion Nov. 1920 Gain 189,778 43,695 498,484 49,674 110,749 26,662 45,957 8,374 1,330,350 309,313 52,500 9,600 81,640 21,056 35,000 15,304 42,683 1,208 83,896 5,807 481,967 39,352 76.6.% 23,803 100,689 12,631 198,803 11,162 498,384 30,959 47,655 17,655 238,813 436 MAGAZINES Circula- tion Fob. 1920 Literary Digest ?18,997 Metropolitan ^?9'?iS Motion Picture Classic 193,100 Motion Picture Magazine... 324,921 The Nation ^^f^ Outing ,-?'!,X Physical Culture ^''i'JIS St. Nicholas 86,246 Scribner-s 91,893 Shadowland 'P?'"?? Spur 15,000 Sun'ey 13,459 Theatre =3,796 Town and Country 20,000 True Story Magazine 100,000 Vanity Fair , 77,317 Circula- tion Nov. 1920 Gain 1,007,760 88,763 367,863 7,848 237,473 44,373 879,391 54,470 28,960 4,364 69,425 19,086 189,607 38,131 74,429 8,183 97,748 5,833 94,732 44,732 20,000 5,000 15,718 2,259 63,002 9,206 22,300 2,300 150,000 50,000 98,747 21,430 Of course, in speaking of gains, that means that by I culation means the in"rease as to advertising revenue as gain, they have gained not only in circulation, but the well, increased price per magazine, and also the increased cir- 1 (Beading) : BOSINESS MAGAZINES. Circula- Circula- tion tion Feb. 1920 Nov. 1920 Gain Advertising and Selling.. .. *.520 4,700 180 Associated Advertising 13,994 18,107 4,113 Editor and Publisher 2,898 3,466 r B67 Printers- Ink •. . . . 13.637 17,360 3.723 AerM Age 8,216 8,184 .;q«68 American Architect 2,248 3,120 872 Architechire 2,79C 3,960 1,164 Architectural Record 9,857 11,072 1,215 Architectural Review 2,320 3,601 1,181 Automobile Blue Book 150,000 200,000 50,000 Automotive Industries 8,461 8,105 644 Commercial Vehicle 3,290 S.602 393 Motor Record 7.012 10,194 8,182 Motor World 22,029 22,174 145 Building Age 10,121 12,148 2,027 Journal of Accounting 11.180 15,000 3,820 Chem. and Metallurgical Eng. 11,233 13,362 «.119 Journal of Industrial Eng. . and Chem 3,287 3,922 635 Clothier and Furnisher 14,580 15,100 520 Haberdasher 3.386 3,954 668 Coal Age 10.842 10,860 18 Annalist 10,000 10,170 170 Circula- tion Feb. 1920 Dramatic Mirror 10,151 Dry Goods Economist 11,529 Electrical Merchandising.... 9,343 Electrical World 1»,022 Export American Industries. 51,288 Importers' Guide 81,922 Hardware Age 15,330 House Furnishings Review. . 9,310 Jewelers' Circular 9,6.^6 Machinery 22,163 Mechanical Engineering .... 11,613 Illustrated Milliner 9,527 Millinery Trade Rev 10,500 Engineer'^ and Mining Jour. 8,917 Motion Picture News 10,500 Motion Picture World 10,650 Motor Boat 9.657 Motor Boating 17,74"i Power 27,16.". American Printer 2.630 Printing 3,10^ Railway Age 7.915 Typeivriter Topics li^.OOO Circula- tion Nov. 1920 Gain 25,875 15,724 14,890 3,361 11,279 1,936 23,779 4,757 56.493 5,205 83.696 91,774 10,909 1,57» 11,446 2,136 10,000 364 24,593 2,430 17,000 5,367 10,906 1,379 11,000 500 9,867 930 11,425 925 10,901 251 12,134 2,477 22.293 4,548 28,248 1,085 3,071 441 4,400 1,300 9,280 1,36.5 10..'!20 320 Circula- tion Feb. 1920 Buttcrick Trio 1,411,839 Children's Costume Royal. . . 20,000 Delineator 930,237 Designer 314,035 Fashionable Dress 55,663 Good Housekeeping 526,368 WOMEN'S MAGAZINES Circula- tion Nov. 1920 Gain 1.514,193 102,354 30,317 10,317 1,019,531 89,294 494,862 180,627 60,812 5,149 682,823 166,456 Circula- tion Feb. 1920 Harper's Basaar 85,000 McCall's 1,201,386 Pictorial Review 1,605,301 People's Home Journal 848,874 Quarterly Fashicn Book 500,000 Vogue 122.353 Circula- tion Nov. 1920 Gain 129,645 44,645 1,350,067 148,681 1,900,971 295,670 878,147 29,273 552,000 52,00Q 137,071 14.718 I/IST OP PUBLICATIONS WHICH HAVE RAISED EITHER THE PRICE PER COPY OR THE YEAR RATE. BETWEEN FEBRUARr AND NOVEMBER, 1920. Price Single Copy Price per Year Feb. Nov. American Machinist $-20 $.25 Cosmopolitan 25 .35 Harper's 35 .40 Field and Stream 20 .25 Forest and Sreann 25 .25 House and Garden 35 .35 Judge 10 .15 Delineatof 20 .25 Designer '. 16 .20 Good Housekeeping 25 .25 McCall's 10 .15 People's Home Journal 10 .15 Pictorial Review 20 .25 Coal Age 15 .20 Electrical World 15 .25 Engineering News Record ... .20 .25 Iron Age 26 .50 Hardware Age 10 .25 Illustrated Companion Millinery Trade Review 50 .60 Motor Boating 25 .25 Motor World ^ 20 .35 Moving Picture World 15 .25 Power to .15 Feb. $5.00 3.00 4.00 2.00 2.00 3.00 5.00 2.00 1.50 2.00 1.00 1.00 2.00 3.00 5.00 5.00 5.00 2.00 .35 5.00 2.00 3.00 3.00 2.00 Nov. $6.00 4.00 4.00 2.50 3.00 3.50 7.00 2.50 2.00 3.00 1.50 1.25 3.00 5.00 5.00 5.00 6.00 3.00 .50 6.00 3.00 3.00 3.0O 3.00 Price Single Copy Price per Year Feb. McClure's 20 Hearsfs 2r, Scientific American 10 Spur 35 Motion Picture Classic 20 Motion Picture Magazine. .. .20 Physical Citlture 20 St. Nicholas 25 Survey ." 10 Printing •.'....." 15 Auto Dealer and Repairer. . . .10 Haberdasher 35 Dramatic Mirror 15 Electrical Merchandising 20 Electric World 15 Hardware Age 10 Jewelers' Circular 15 Illustrated Milliner 50 Yachting 25 Railway Age 15 Adventure 20 Boys' Life 15 Film Fun 15 War Cry 15 Nov. .20 .35 .15 .37 .26 .25 .25 .35 .15 .15 .15 .45 .20 .25 .26 .25 .20 .75 .35 .2.-. .25 .20 .20 .10 Feb. 2.00 3.00 5.00 6.00 2.00 2.00 2.00 3.00 4.00 2.00 1.00 3.00 4.00 2.00 5.00 2.00 3.00 6.00 2. .10 5.00 3.00 1.50 1.50 Nov. 3.00 4.00 6.00 7.00 2.50 2.50 3.00 4.00 5.00 3.00 1.50 4.00 6.00 2.00 5.00 3.00 4.00 8.00 4.00 8.00 4.00 2.00 2.00 And last, but not least, our old friend the Salvation Army, which employs from fourteen or fifteen of our mem- bers in October, charged five cents for the War Cry, Doc- tar, and November 20, ten cents. Two copies are here submitted for verification. We have the Octx)ber copy there. You wiU see at the top where it is ten cents,. — 5 to 10 cents. Dr. Kirchwey — From October to November, from 5 to- 10 cents, and November 20th, 10 cents. Mr. Rouse — ^And the Ladies^ Home Journal, February, 1920, was 50 cents, and December. 1920. is 75 cents. I Just submit these two samples as verification, and we will give you also our authority for the balance of them. (Hand- ing papers to Arbitrator.) This is all in our Rebuttal Exhibit 31, and our authorities for all these increases are contained in these two books (hands books to Arbitrator)' — the Standard Rate & Data Service, of February, 1920, and of November 1920. This gives complete circulation, price increases, line, quarter-page, and everything; subscription rates, and the entire information regarding all of these publications. The authorities are here, and we present them to you under one exhibit. Rebuttal. Exhibit No. 31. as verification of all of these increases. We present to you at this time, Rebuttal Exhibit No. 32, Standard Customs of the Machine Composition Association of New York, the February List, 1920, and the prices effective October 11, 1920, submitted to and approved by the Trade Relations Committee of the New York Em- ploying Printers' Association, with whom this controversy 13 at the present time. The rate in, February, and the Increase eflTective October 11th, approved by these gentle- roen that contend that we are not entitled to an increase, although they are Increasing their rates. I miEht add again, that my good friend. Mr. Jennings, is a prominent member of this Association. MACHINE COMPOSITION ASSOCIATION RATES. These rates were submitted to the Trades Relation Com- mittee of the New York Employing Printers' Assoclatiot and approved. EFFECTIVE FEBRUARY 1, 1920. Time Work. Linotype machine time worlc, 13.80 per hour Monotype machine time work, $4.60 per keyboard hour. Hand composition, $2.26 per hour. Minimum charge for any job (linotype) $1.00. MONOTYPE COMPOSITION. 1,000 ems or less, $2.10; 1,000 to 2,000 ems, $3.50; 2,000 to 3.000 ems. $4.75; 3.000 to 4.000 ems, $5.90; 4.000 to 5 000 ems. $fi.75. Over S.flOO, VT M. $1.35. Monotype, per hour, $4.60. Hand oomDositlon. 14 and 18 ot., per square inch, $.14. Hand composition. 24 ot. an up. per square inch, $.12. Straight matter, per tbnusand ema. $.35. I Typewriter, per thousand ems, $1.60. For matter set over 60 picas wide, 10 cents extra. Tabular matter, $2.20 per 1,000 ems or more, according to class of matter. Tabular matter, made up with rules, $2.75 per 1,000 ems or more, according to class of matter. LINOTYPE COMPOSITION. 8 Dt. and under, .90; 9 and 10 pt., $1.00. All publications of 50.000 ems or more per month, a reduction of 10 cents per M be allowed. Straight testi- mony matter (law work) of 50,000 ems or over, a reduc- tion of 10 cents per M be allowed and measured at 11 pt. EFFECTIVE OCTOBER 11. 1920. Time Work. Linotype machine time work, $4.20 per hour. Monotype machine time work, $5.00 per hour. Hand composition. $2.80 per hour. Minimum charge for any job, $1.00. MONOTYPE COMPOSITION. 1,000 ems or less, $2.30; 1,000 to 2,000 ems, $3.85; 2,000 to 3,000 ems, $5.25; 3,000 to 4,000 ems, $6.50; 4,000 to 5.000 ems. $7.50. Over 5.000. per M. $1.50. Monotype, per hour. $5-00. Hand composition, 14 and 18 pt., per square inch, $.16. Hand composition. 24 pt. and up. per square inch. $.14. Straight matter, per thousand ems, $1.50. Typewriter, per thousand ems, $1.75. For matter set over 60 picas wide, 10 cents extra. Tabular matter, $2.40 per thousand -ems or more, ac- cording to class of matter, exclusive of make-up. LINOTYPE COMPOSITION. 8 pt. and under, $1.00; 9 and 10 pt., $1.10. 1.000 ems or less, $1.86; 1,000 to 2,000 ems, $3.10; 2.000 to 3,000 ems, $4.15; 3.000 to 4,000 ems, $5.25; 4,000 to a.OOO ems. $6.80. All publications of 50,000 ems or more per month, a re- duction of 10 cents per thousand be allowed. Straight testimony matter Claw work) of 50,000 ems or over, a reduction of 10 cents per thousand be allowed and measured as 11 ot. Matter is all contained in the type lines which we have submitted, and that has gone into effect, and has been approved by these gentlemen as right and proper, al-. though the industry is in such bad condition, as they say, and will be paid irrespective of any award that you may make. The above table shows a decided increase on all classes of work. These rates have been approved by the Trades Relations Committee of the Employing Printers' Association and are effective October 11, 1920. (Rebuttal Exhibit 32.) Once more, Mr. Arbitrator, verifying our oft repeated statement that increases all along the line will be in effect regardless of any award granted. Notwithstanding all this, the Employers state that the industry will admit of no increase. Comment is unnecessary! The same reasons that prompted the omission of un- necessary data in the previous table prevailed In this Instance. However, the table speaks for itself, and speaks most voeiferously. The previous tables show that the rates for advertising liave been increased all along the line. The following table, in addition, shows that advertising is increasing in volume. The table shows increases in 1920 over 1919. The Ex- hibit submitted in verlflcation discloses that advertising in 1919 had increased in volume over 1917. The astounding figures revealed in the rates of adver- tising and the enormous revenue derived from same is ex-amplified by the publications here submitted. (Rebuttal We present to you at this time Rebuttal Exhibit 33. Here is the Rebuttal Exhibit 33, and here is a compila- tion of the figures, and I will simply read the grand totals The magazines are entered here from Printers Ink and the total they give. I will give the grand total for 1919, and then the grand total for 1920, without read- ing all of them. The first. I think, represents general magazines. The second section represents Women's Magazines, and then — just let me see this a moment. Mr. Silcox. In 1919, the grand total was 868,153. In February, 1919, the grand total was 1.471,358. Dr. Klrehwey — Pardon me; the first was February. 1919, and the second, 1920. Mr. Rouse — Correct. I was in error. These are by months. February. 1910. the first column represents 1919, and the second column 1920, over the preceding months. In . March, 1919, there were 1,163,859. March, 1920. 1,677,336. April, 1919, 1.382.293; April, 1920. 1.775.876. May, 1919. 1,441.623; May. 1920. 1.758.262. June, 1919, 1,416,716; June, 1920. 1,646,377. July, 1919. 1.097.284; July. 1920. 1,163.420. August, 1919, 989.990; August, 1920, 1,130.520. September, 1919, 1,247,620; September, 1920, 1,364,627. October, 1919, 1,473,374; October, 1920, 1,692,716. November, 1919, 1,312,944; November, 1920, 1,627,506. This represents, Dr. Klrehwey, the lineage gain (agate lines), over the preceding year, month by month, and each and every month of 1920, according to Printers' Ink, which shows an increase in advertising volume for the preceding months and year before, showing conclusively that this has been the most prosperous year in the history of the in- dustry, so far as advertising, and so forth, goes. At this time I just want to call to your attention Exhibit No. 34, the Pictorial Review for December. We have marked some ot those pages. (Handing Pictorial Review to the Arbitrntor.) This is a statement regarding the Pictorial Review Company. Pictorial Review Company: In spite of the increase of $11.00 to $13.00 per agate line (18 per cent.) and $8,250 to $10,000 (21 per cent.) per page, the Pic- torial Review for December, 1920, shows advertising ap- proximately over $500,000. Back cover, $17,000; three color pages, $14,000; inside covers, $12,000; black and white pages, $8,250; half pages, $4,250; quarter pages. $2,100. This estimate is based on the old rates. Circulation increased February, 1920 — November, 1920, 295,670. Pictorial Review increased from 20 cents per copy to 25 cents. From $2.60 per year to $3.00. Advertising according to the table we submit in evi- dence, increased each month in 1920 over the correspond- ing month in 1919. This firm employs 38 members of Typographical Union No. 6. Does this statement warrant an increase to the composi- tors in their employ? Just another example of Rebuttal Exhibit 34-A— Vanity Fair. We have the pages marked in Vanity Fair, if you would like to look at them (banding paper to Arbitrator). Dr. Klrehwey — Yes, I would be glad to. Vanity' Fair: This issue shows approximately $63,000 alone in advertising revenue. Vanity Fair increased page rate, according to our au- thority (The Standard Rate. and Data Service) 20 per cent. Vanity Fair showed an increase in circulation (February- November, 1920) of 21.430. Many other instances of a like nature could be sub- mitted, but the length of time already consumed in these proceedings, and the great mass of evidence to be submit- ted compels us to refrain from overtaxing the strain neces- sarily imposed on the Arbitrator. In conclusion, before submitting our summary, we wish to say a word anent the periodical publishers. While it is true that this branch of the Industry does not appear openly in these proceedings, nevertheless they are a very potent factor as regards the position assumed by the employers. And just at this point I want to present for your consideration, why we refer to the periodical pub- lishers. Our members work directly for Colliers; The Fed- eral (Day and Night); Harpers; Methodist Book Concern; Bradstreet's; Munsey's; McCall; McGraw-Hill (who have ten of the leading trade publications) ; the Pictorial Re- view; Scribners; Street & Smith, and the War Cry, and a number of others not mentioned. We bring that point to your attention so that you will understand our reference to the periodical publishers. We know that these publishers can, in great measure, influence the action of the employers. We know also that the publishers are the ones most persistent in their denial of nn adequate increase. In every scale negotiation we are met with a threat from this body that they will have their periodicals pro- duced in some other town if the scale should be materially increased. Likewise in every scale readjustment we are 'informed that the periodical publishers are in position to pay any increases. In every instance these dire prophesies have proved but -idle threats with the intent and purpose to keep down wages at their lowest level. Nevertheless, we have shown that the periodical pub- lishers are the ones reaping the harvest and even at this time are increasing their rates for advertising space. And mark you, Mr. Arbitrator, these higher rates are an established fact right now, and will be in effect re- gardless of the outcome of this proceeding. And so with the employers. 43 They, ton. havp increased their rates, and willy nilly. will reap the benefit of advanced rates irrespective of the outcome of thpse negotiations. And po on all along the line In the printing industry in New York. All branches of the Industiy (commercial) have informed their patrons that owing to a proposed scale increasp. in 'which negotiatiops are now pending, new rates are now or soon will be issued. And, as we have stated before, these new rates — -higher rates — will he' and in many cases now are demanded, re- gardless of the outcome of these negotiations. SUMMARY In summing up this case for Typographical Union No. 6, we beg your indulgence, Mr. ^Arbitrator, for deviating to a very slight degree from- the usual practice by introducing a f^w quotations from an nrticlp in the New York Tribune: Si^uday. Novpmber 28. 1920. by Sumner H. Slichtfir, Econo- mist Department, Cornell University. Mr. Slichter says (JJebuttal Exhibit 35): . "WORKE-RS can not be expected to be more interested in promoting the prosperity of industry than industry is in promoting the prosperity of the workmen. , ' 'When industry seeks to keep wages low and hours long, when it consistently resists the workmen's efforts to raise their standard of life, workmen can not be expected to be interested in helping to make profits large. The workman fails to see why he should help thp business man makp money whnn the business mnn is not helping him to makp money, "An active effort on the part of the workmen to pro- mote the prosperity of industry can scarcely be expected until the workmpn fe^I that industry is a friendly rather than a hostile force; until they believe it is interested in making wages higher, not in keeping them low; in mak- ing hours shorter, not in kpeping them long, and in miti- gating the severity of the work, not in enforcing the maximum speed; until they believe thpy will promptly and directly share in any increase in the prosperity of the industry. Wages and conditions of labor must be determined by thp same principle by which dividends are determined by the ability of industry to pay more or to Improve conditions, not by the necessity of doing so. , "This appears to touch the crux of the problem of industrial morale. Workmpn can not be expected to feel the maximum interest in the affairs of industry and the greatest willing- nesa , to cooperatp in order to promote its prosperity unless they are able to identify themselves with industry, to feel themselves a part of it, insiders in it, to feel also a sense of ownership in it. The feeling of belonging to a thing appears commonly tn induce a feeling of ownership toward it. They cannot fpel themselves to be a part of industry nor industry to bp in pnrt theirs unless industry la de- voted in a substantial mpasure to the promotion of their interpsts, unlpss managements strive just as energetically to raise wnges as they do to raise dividpnds. The thing which now create a sulf bptwepn industry and the men, which causes them to feel that they are not a part of the enterprises for whifh they work, and that the enterprises are not In part theirs, is the fact that industrial enter- prises are devoted primarily or exclusively to thp service nt the stockholders, often at the pxpense of the interests of thp men. Whpn the men observe how completely the purposes of business enterprises is the promotion of their interests, they can not escape feeling themaelvps to be merely outsiders." ♦ * • Finally, Mr. Arbitrator, wp respectfully appeal for a decision in our favor in the belief that we have proved the justness of our cause nnd the further belief that we haye prove^l the pconomic conditions of the industry in the City of New York warrant the samp. That the cost of living conditions warrant »n adequate increase in wage for the bonk and Job printer is evident from the following facts : We havp shown thnt one basic factor in the cost of living argument ndust be as of 1914. Wp have shown that the other basic factor must be as of the time of readjustment — October 1. 1920. We have shown that the agreemont between the Employ- ers and Typographical Union No. 6 calls for "sucli read- justment to bp based on the increased cost of living and the economic condition of the industry at the time of ad- justment." We have shown that the contract between the Employers and Typographical Union No. 6 calls for a separate and distinct aettlpment of the ouestions involved as affecting only the two bodlps In this proceeding. We have shown that in the adjustment of January 1, 1920, wp weip grantpd. based on the cost of living, an Incrpase of 84 ppr rent. Wp have shown that the increase grantpd at that time should hnve bppn hnsed on 103.81 per cent. We have shown that book and job printei'S, from January 1, 1920, to October 1, 1920, were carrying the burden of a losR of 20 per cent. We hnve shown that thp award of Janunry 1. 1920. was not based on a weighted avernge of the industry and never was so intended. We have shown that an adequate increase in wage is necessary in order that book and job printers maintain that standard of living to which their skill and intelli- gence entitles them. We have shown that New York, once the premier of the Industry In the matter of wage ^ scale, has fallen below some cities and is now on a level with such hamlets as Perth Amboy, New Bochelle, and New Castle, Pa. We have shown competent authorities that the decline in the cost of food has been comparatively small, has affected for the most part articles that do not enter largely into the workman's total cost, and may be more than off- set by the unheralded increase in some other articles of food. We have shown that the increased rates for rent, fuel, and light will many times offset any so-callpd reduction in the cost of food- We havp shown that notwithstanding the loss of 20 per cent from January 1, 1920, both the Government report and the Union Survey disclose a still much higher percentage on October 1. 1920. That the economic condition of the industry in New York will admit of an ndpguate increase in wages for the book and job printers is evident from the following facts: We have shown that the basic factor to b« considered in this connection is the economic condition of the industry. We have shown that any factor not bearing directly on the printing industry should have no weight in these proceedings. We have shown that contract calls for readjustment of wage scalp on October 1, 1920. We have shown that on August 17, 1920, Typographical Union No. 6 notified Employers it was ready to open nego- tions. We have shown tliat it has been agreed by the Inter- national Joint Confprencp Council, of which the employers are a component part, thnt the industry frankly recog- nizes the cost of living, as compared to 1914, as the basic factor in wage adjustments. We have shown that it has been agreed by the Inter- national Joint Oonfprence Council, of which the Employers are a component part, that the industry pay at least a reasonable living wage; scales below this to be adjusted in frank recognition of the basic principle involved. We have shown that Employers rppresented in these pro- ceedings atp granted privileges and exemptions from the laws of the union not enjoyed by members of the industry in thp newspaper branch. We have shown n large number of increases granted to other cities of the United States in the printing Industry which make Npw York look very small in comparison. We have shown that while New York is no longer the premier of the printing industry as far as wages are con- cerned, it is still entitled to that exalted position with regard to economic conditions of the industry. We have shown that printing plants are putting in new equipment. We have shown that there is general expansion In the printing industry. We have shown that printing plants are moving into larger quarters. We hnve shown that of the ten leading American indus- tries the printing industry paid the smallest percentage of increase. We have shown a small and decreasing number of fail- ures in the priating industry. We have shown by statement of their financial , standing printing planits nre in a very prosperous condition^ We have shown that there have been comparatively few failures in the printing industry in New York com- pared with failures in any other line of business. We have shown that the printing industry does not de- pend UDon thp prosperity of any single industry. We have shown that competent authorities look forward to 1921 as a year of good business in the printing industry. We have shown that advertising managers of magazines, trade papers, etc., report indications point to the proba- bility that 1921 will be pven bigger than 1920. We have shown that magazine circulation is increasing. We have shown that the volume of advertising is in- creasing. We have shown that the rates for advertising have in- creased and still are increasing. We have shown thnt subscription rates have increased and still are increasing. We have shown that Npw York does one-twelfth the printing of th« world. We ha vp shown that New York does one-quarter the printing of thp United States. Wo have shown that the^-e is a decidpd increase in all classes of work in the printing industry of New York. We have shown that the Machine Composition Associa- tion has very materially increaspd its rates. We have shown that the Employers pay more than the present scale to a majority of our membprs. We have shown that rather than go to arbitration the Employers have offered us a four dollar increase.. We have shown thnt in the book and Job brnncli of the industry with an increased membership of 1.500 over 1916 44 '^::: :rtS tTr'^^^ ^^^ ^^ employment now than tJ.er. This. Mr. Arbitrator, concludes our rebuttal. ««v nn^f ""^ *** ^f'"'"^ y**^' ^^^^t**'^' that we have condensed our paper an much ns at all possible ^nM^i/H.^r**"!® ^^^^^ proceedings we had no intention of BUbmittlnff the mass of evidence containPd in the rebuttal, ?**u r,''*^*^°**^°*^ ^^^ documents embracfid in the brief liJ tr. '^v'TI? """^^ ^* encumbPut upon us to do so. •I; }\ ""^/"tatlon of a number nf the statements sub- mitted by the opposing side, and second, in order to pre- sent the facts as we found them upon diligent investigation This mass nf evidence, we assure you. Doctnr. has been gathered sincp our last meeting, after a perusal of the Bripf of thp Employers. Had we hnd more timp at our disposal we could have produced a great deal more of the same evidence We believe, however, that we have covered all the points at issue, that we have adhered strictly to the same and have produced testimony that is most convincing. With fl full appreciation of the obligation we owe you Doctor, in rpviewing this case, with knowledge aforehand of the Justice to be expected at your hands, and with an unbounded belief that we have provpn the justness of our demand and the ability of the industry to grant same we thank you for your courtesy and indulgence. Dr. Kirchwey— That concludes the rebuttal for the Union ? Mr. Rouse — Yes. We will be glad to proceed, Doctor, on the conclusion of the case. Dr. Kirchwpy— What is your pleasure. Mr. Brower? Mr. Brower— We arp unable to proceed tomorrow. Doc- tor, because we have already arranged for conferences, so to spenk- Dr. Kirchwey — Yes. Mr. RouBP — What day can we meet for rebuttal argu- ment ? Mr. Brower— We are filled up all this week, practically uow. Mr. Rouse — Dr. Kirchwey. I appeal to you in this case, that the industry is unsettled; that Typographical Union has prespnted its case clearly; has shown conclusively that we started by notification on the 17th of August. The first conference was held on the 26th of August; and it is unfair for the employers to continue to dplny In this matter, and the rebuttal should be concluded within the next few days. Dr. Kirchwey — I presume the Employers are as glad as you arp and I am to bring the arguments to a conclusion, in order that the Arbitrator may have an opportunity to consume and digpst the mass of material that has been put before him. I am personally pngaged in a npw arbitration in the Printing Trades on Thursday, the 2nd of December, and tomorrow forenoon, I have lectures which will occupy me, and a latp afternoon engagement at five o'clock. I should hardly be available very much ,during the next two days. After that, until next Monday, I shall he free, and then, after Monday forenoon I shall be available; that is to say. I am personally free on Friday, the 2nd of December, and Saturday, the afternoon of the 4th, and probably on Monday afternoon, and then all day Tuesday and Wednesday of next week. Mr. Brower — Doctor, the Union has presented at this time a mass of statistical evidence that will take some time to dlgPSt and to check. As you well know, we are in the midst of other arbi- trations that are taking up our time, by preparation and rebuttal. We are giving all of our time, in so far as our advisors and myself are concerned. There is no sparing of time for thp expedition of any of these cases; and we are, as you have said, as anxious that the thing shall be concluded as anybody possibly can be, and shall not put a stone in the way of doing so. We, of coursp. must ask for sufficient time to check the mass of evidpnce that has bpen submitted. In so far as our nebuttal at the moment is concerned, on the case as previously submitted by nur opponents, we were ready to speak. We may proceed that way, or we may. if deemed desirable, chpck the facts and statistics here presented, and present all at the one time. Other- wise, we will ppfhaps have to ask for two meetings, one of which, the one that we were prepared to go on with today, will not take so very long, being, as I said, the rebuttal with respect to the prima facie case, as originally presented by our opponents. For the other, we will have to take a bit more time to check and becomp familiar with, and learn and show its proper effect, if it is not so shown, in our opinion- Dr. Kirchwey — My own feeling would be, that it would be desirable to make one spssion instead of two. other- wise there would, unavoidably, be a certain amount of repetition. Mr. Brower— Yes. Dr. Kirchwey — It may be thnt this material will simply cause you to make certain modifications in the body of the rebuttal that you have already prepared, and that less time will be consumed. If we give you sufficient time to go over this matprial, before we have a hearing, that may be so. Don't you think. Mr. Bouse, yourself, that it would be desirable to condense the rebuttal of the League into a single ses- sion, if it can possibly be done, instead of making two ses- sions out of it? , Mr, Rouse — Doctor, we arp very anxious to conclude, of course, but we are willing to defer to your wishes and judgment; but thp position we take is that the employers have compiled and have compared. Now, this proceeding has been encumbered not by us, but by them; in 'the beginning, by going outside of the issue, in our opinion, and submitting to this Union a volume and three wepks' time to rebut it. We have done that and combated their arguments successfully, in our opinion, and adhered strictly to the contract; and fOT them to ask for time, time to go over facts that are ab- solutely ascertainable to them at a moment's notice, We can not assent to that. We say that they should rebut within a reasonable time, and conclude that rebuttal in a day's time; and then for extra sessions we would be goiHg on until the end of time under such a proceeding. Dr. Kirchwey— I believe the plan is to conclude it with- in tiie limits of a singl« day. at any rate. Mr. Brower — I have every expectation of that, yes. Dr. Kirotiwey— What suggestion have you to make, Mr. Brower, as to the time when you would be ready? Mr. Brower — You know this week we are practically filled up with other arbitrations, one of which is with yourself, and the rest of the time of our organization is taken up in preparing facts for presentation in these cases. Let me look at my diary a moment. The last one of our direct or prima facie cases is on the 7th of Decem- ber. We think we can get ready on the 8th of Decembter in this case. Dr. Kirchwey — I have an engagement from 11:00 to 12:00 on Wednesday, the 8th of December. Mr. Brower — The 9th? Dr. Kirchwey — I could meet you on the 9th, or Wednes- day afternoon. The 9th is Thursday. I could meet you on Wednesday afternoon or on Thursday, or at any time, Mr. Rouse — Wednesday would be preferable. We woald be ready. You are free on Friday and Saturday. You are closed for this week? Mr, Brower — Yes. Mr. Rouse — Could you meet Saturday, this week? Why could not we close this case this week? Mr. Brower — It is impossible for us to do so, because we have other affairs that we have to take care of. Mr.- Rouse — Wednesday afternoon at what time ? Dr. Kirchwey — We might have a session Wednesday afternoon, if that would be agreeable to you, and then, if necessary, go over to the next day. Mr. Rouse — ^That is agreeable, Wednesday afternoon' at two o'clock. Doctor — the 8th of December at two o'clock. Dr. Kirchwey — That will suit me. Mr. Rouse — That is for the conclusion of the rebuttal argument? Mr. Brower — All right. Mr. Oppenheimer — 'What disposition is to be made of our exhibits at the present time? Mr. Rouse — They are to remain in the Arbitrator's hands. Dr. Kirchwey — I will manage somewhow or other to get them to my office. 'Mr. Silcox — Have you any duplicates of these — can I have access ? Mr. Oppenheimer — No, sir; that is the very point. Mr. Rouse — No, sir. Mr. Silcox — You don't have to get hot under the collar about that. That is a perfectly civil question. Don't act like a kid. Mr. Oppenheimer — As a fair man, Mr. Arbitrator, you must realize they should have no access to any of these papers unless we know what they have in rebuttal, and we have the same opportunity and the same access to what they have. Our case is in. Their case is not. Mr. Silcox — We will waive that. Doctor. I have a copy of the material they have there, and I can make 'it up. I wanted to save myself a little time, though. Mr. Rouse — ^Dr. Kirchwey, 1 submit that we know this, that the people that are back of this fight, forcing these gentlemen, are the Periodical Publishers' Association; we were to have had a conference on the 23rd day of Septem- ber and all of the Unions were invited, and that confer- ence did not take place because of the interference of those gentlemen. They came there, and that conference was not finished until five o'clock, and Mr. Brower came out and asked us to wait. Now, they have access to all of these facts. They are the people that we are speaking about. They can get all of this information from the Pictorial Review, from McGraw-Hill and the others. Let those people show their books to us. We know they have made untold money all this time, and arp in an unusual position of prosperity. They have access and we have not anything to do with them, for if we had, we would show a greater revolution than we have shown to you today in our small way, and at a great sacrifice on our part. If I could tell you the story how wp obtained those rate books, and how hard it was to get them, you would be astounded. Dr. Kirchwey — You have made a very impressive caBe, and you have undoubtedly introduced a great many new facts which were not before me before, and there is a good deal of matfirlal here whiclj probably may be acces- sible to Mr. Silcox, !f be has plenty of time in wbieb to look it up. I suppose the material, being all public ma- terial, and none of It secret, is free for all? Mr. Rouse — He can go to any one of those concerns and get that book. Dr. Kirchwey — I was wondpring whether it would econo- mize our time, yours and mine as wpII, and make sure that everything will be ready, if I could give Mr. Silcox permission to go and paw over these. Mr. Oppenheimer — With all due respect to you, Doctor, It w«uld not bp fair. Mr. Bouse — ^They have not given us anything.' ' They would not give us a rate card. If they will give us the opportunity of consulting their books /.' Dr. Kirchwey — It is very material and Mr. Rouse — If the publishers will give us an opportunity to dispute that, by competent inquiry of an expert ac- countant, we will be willing to do bo, but they won't give us that opportunity. Dr. Kirchwpy — I will accept your decision with respect to that. I simply thought that we might compromise, and gain time. Mr. Brower — ^That we are not to have any access to them? Dr. Kirchwey — Apparently. Mr. Brower — 'At the present time I will withdraw the statement of being ready next Wednesday, a week from tomorrow. I do not know when we will be readyl When we are ready, we will let you know. Mr. Douglas— I wish to enter an objection at this time to them getting a copy of these minutes until they pro- ceed with their rebuttal. That is the custom of an arbitra- tion. Mr. Rouse — This is either a real arbitration proceeding, bnsed on the contract, on the facts, and on the posi- tion that the Union occupies, of a right that it must have of inquiry, which has not been accorded to it. They can not expect us — they go and submit a mass of docu- ments to us, and then we have no access to their docu- ments. Mr. Drtuglaa — And thpy want a copy of ours. Mr. Rouse — And I trust that the Arbitrator will hold them to the agrpement tn meet on Wednesday. < Mr. Douglas — Doctor, we have gone through arbitra- tion after arbitrntion, and in no case hnd thp opponents asked us to give them our rebuttal side under such cir- cumstances. We do not want time tn answer them. Let them proceed, and we will answer them right here, and we want them to do thp same. Dr. Kirchwey — I am quite prepared to rule upon that point. I do not understand they ba ve asked for or are entitled to a copy of the minutes of the proceedings today; thnt is to say. their rebuttal ia a rebuttal to your original argument. They arp entitled to take advantage of what they havp heard today Mr. Douglas — Absolutely. Mr. Oppenheimer — 'We can not stop them from that. Dr. Kirchwey and they are entitled to run down any documents which they may choose to; and the sugges- tion I made was not that thpy should have your rebuttal brief, or the minutes of the stenpgrapher ; but they should have access to documents, which they can find in any way, in ordpr to save timp. If you are unwilling to give tbem that opportunity, I will rpgnrd that ns your property, and will act in ac- cordance with your desire in the matter. Mr. Oppenheimer — ^That is our decision. Mr. Brower — Our spirit in this matter has bepu to give the widCRt latitude in the prpsentation of any facts that anyone felt might be rplevant to the case, leaving it to the Arbitrator to dpcide the relativenesa or the weight of the fflcts presentpd with respect to the question at issue; and the presentation of the case, to us, seems to be sort of lop-sided; whether intentionally or unintentionally, of fourse. wf do not know. The facts presented here at the prpsent time are fact's that, so to speak, should have been in the prima facie cnse. There was just a rebuttal and a check-up and a sort of vprbal answer to that — we are presented here with facts, supposedly with facts with regard to increases of circulation and increases of subscriptions and things of that kind, that are beyond our information and knowledge at thp present time. They are subject to dispute. I pre- sume; but all of those facts have other relations, and per- haps other things bearing upon them, to explain thnm.- ■ 'For instance, some of the increases in advertising ifates perhaps may be tied up with the increase in circulation, pportunity, and Mr. Silcox has taken notes all througb these proceedings. The exhibits — each ex- hibit that has bpen presented has been bandpd over to him, and he has made liotatlons. and a voluminous amount of notations are in his pocket now. There is ample opportunity for those gentlemen to stand hpre before you. a man who stands high in this com- munity as a man of intellectuality, and say that they are handicapped — why, it is absurd. It is ridiculous. Here is Printers' Ink (indicating paper), the paper that is pub- lished as a craft paper; that almost every one of these gentlemen subscribes to. and discloses the figures that we have obtained this advertising increase from. They are all trade papers, every one of them, and they are in their possession. They read them every day. We have got to subscribe for them; and they have other things that we do not have access to, secret intercommunications that we know nothing about. We can not go to paper houses. W,e can not go to ink houses. We can not go to metal houses and ask them to give us a statement! Why? Be- cause thpy know if they give ua a statement which will show certain condition they are immediately "In bad" with the employers, and are apt to lose business through it. You must appreciate. Dr. Kirchwey, the position of the worker in this industry. He is circumscribed entirely by every obstacle that can be placed in his way, to prevent the worker getting information; and when they say we have accpss — I do "not qupstion Mr. Brewer's honesty at all. He may think, from this point of view, that we have access, but you must know, as an intelligent man, that the worker has no access, unless he has some control in the industry ; unless he . has some proper tribunal or Board that can go into it industrially, and make an investiga- tion into the industry, and that can only be done when we have absolutp faith in such a Board, and when that Board can go in and see what is or is not. and' whether black is white, or whether white is blnck. Dr. Kirchwey— Now. it Is perfectly clear, Mr. Rouse, to me, that both sides are equally favorably situated, so far as ascertaiaing facts with regard to the increased cost of living. Mr. Rouse — That is agrepd. 4G Mr. ODenheimfr— That is agreed. Dr. Kirchwey— With respect to the state of the industry, the employer, of course, is at an advantage. Mr. Oppenheimer — You bet. Mr. Bouse — Decidedly an. Dr. Kirchwey — Distinctly there is no question about that, and the only way in which you would be put in an equal advantage, is if you were in a position of partners, or co- operators with them iu the business. 'Mr. Bouse — Correct. Dr. Kirchwey — Merely to put the books at your dls- posnl for an exnmination, would not give you the same opportunity of understanding the intricacies of the busi- ness, and possibilities for the immediate future, which must be comprehended in any study of this condition, which th<» emplnyer has- ■ Now, assuming all that with respect to that futurft In- vestigation, yon are something at a disadvantage. I am not very much concerned in questions of advan- tage and disadvantage, because I am here in the posi- tion of a Judge, who has got to know every blooming thing, if he has to render a Just award. In other words, I want all the facts, and I can get all the information and argument from both sides consistent with bringing the arbitration to a conclusion, within a reasonable time. Now, it was for that latter reason it occurred to me that -it might be better to waive your technical right to regard this ns a semi-legal or judicial proceeding, where every man has bis day in Court, and no more, and suggest that you exchange briefs and information, so that no one shall have anything up his sleeve; and you can put everything on the boards before me in order that I may be fully In- formed. Now, I am perfectly willing to give you, if you feel that it is a necessary advantage to you — I am perfectly willing to maintain the ruling that there shall be no — that your brief shall continue to be your property, and that the evidence you put before me shall continue to be your property, «.nd that it shall not go into the hands of anybody else, excepting the Arbitrator, to whom you have entrusted it. It seems to me that it would be preferable, if you were to exchange briefs, rebuttal briefs, in order that each man might be fully informed, each side might be fully informed as to the facts in the possession of the ' other; but that is for you to determine. This is a mat- ter of arrangement, and not a matter upon which I can make a ruling. Mr. Douglas — Doctor, Mr, Brower made the statement that he wanted to bring out all of the true facts in this case, so that you might have them. After having made that statement, I would like to ask the opposing side if they will present their books to the Arbitrator for In- vestigation, so that we can have all the true facts Dr. Kirchwey — Would it be feasible for me to investi- gate those books? I do not want to make a request that wnuld be absurd on the face of it- Mr. Douglas — I do not want you to investigate them per- sonally; but I would llkft to hnve you. if they will present their books, find out whether they can afford to pay. . Dr. Kirchwey — Are you clear as to how long it will take ? Mr. Douglas— Not all of them. We can take up certain firms that we think we can glean it from, and have them present their books — not all the books. It would be im- possible; but we could go over some of their books. If they wnuld n How ur. Mr. Bouse — We have submitted to them information, and again, I say. Doctor, it is favorable information. If you have ever been on the quest of that information, you must know at what a disadvantage we have been to get those financial statements, and how we must have obtained them. They are statements right from the mercantile agency. They have been inquired Into by an expert accountant, a Certified Public Accountant. These gentlemen know whether those statements ar** true or not. The last time they called upon Mr. Jennings, Mr. Jen- nings declined to give them information, because his ac- countant was not there. Mr. Jennings— we know this, we know that Mr. Jennings was the same as we were at one time, pounding the keys around this town. We know that where he pounded the keys a few years back, he is now In the employers' class, and an industry that can produce from the ranks what he has produced in his case, as shown by the financial statements, can not be in any de- crepit condition; and we know that when he can pay $o5 a week to seven of his men, we know that the industry can afford to pay more to the minimum workers who are in the minority, according to our survey. Dr. Kirchwey— That is a part of your argument. The only question now is +im*.i Mr Bouse— And for those gentlemen to ask for time! There is not anything. Doctor, t^^^t we have submitted to them that is not printed matter, that is salable and ob- tafn^ble The Pictorial Bevlew-can they not at any time [•Pfute that statement, if that statement is not true? And ? ?he page Vs not right, let them show the Pictorial Page and that the assertions that we have made about it are not true If this statement-that survey-is obtainable, those books are obtainable-everything is obtainable. T^ose documents here, if they want the typographical Journals, I can furnish them with the typographical journals and be glad to verify those statements of scale, increases. Mr. Sncox — I hav« them. "Mr. Rouse — They know these facts. It is simp^ delay- ing the matter. It Is subterfuge, and delay, and nothing else. Dr. Kirchwey — I am not going to accuse anybody as en- gaging in subterfuge; I am going to assume both sides are acting in good faith. I am taking the attitude of the Criminal Law, that even the accused person is to be deemed innocent until he is actually convicted; and I am not going to assume anybody Is trying deliberately to delay this pro- ceeding. I am myself a bit busy now, and I shall be glad to get a few days to^ clean up some of my own private work. So far as these gentlemen are concerned, I happen to know they have other arbitrations pending. They have one pending with me on Thursday. Mr. Bouse — We concede that. Dr. Kirchwey — They must have reasonable time in whieh to maet. Mr. Bouse — We have said Wednesday, Dr. Kirchwey — ^Let us fix It for Wednesday afternoon. Mr. Douglas— Shall I tie those papers up. Doctor, for you (referring to exhibits handed to the Arbitrator) ? Dr. Kirchwey — I would like to get them in some kind of shape. Mr. Brower — I wonder. Doctor, if it is the intent of our opponents, and your feeling, that we should not have every opportunity to meet the issues presented here? Dr. Kirchwey — Why Mr. Brower — There is a good deal of investigation to be made. Mr. Bouse — If there is any exhibit there that Mr. Silcox wants to look at, I will concede the right to him to look at the exhibit; but the brief, unless they exchange briefs, I decline to agree to that. Dr. ' Kirchwey — Why not exchange briefs, which is the suggestions I made a little while ago? Is there any objec- tion to that, if we ran assume Mr. Rouse — If I know what they will bring in on re- buttal ■ Dr. Kirchwey — I have no doubt they believe very firmly in the Justice of their case and they are not merely I am convinced that you believe firmly in the justice of your case, and each one is going to put up the best case he can, which is the right and proper thing for both, of you to do. It seems to me that If you will exchange briefs, each one Mr. Brower— 'We are ready to do that today. We will exchange today what we were ready to present. Mr. Bouse — That is not your rebuttal. iMr. Brower — That is rebuttal on what you put in In your prima facie. Dr. Kirchwey — If you have the advantage of their re- buttal brief, they ought to have the advantage of your complete brief. Mr. Bouse — That is only fair. Mr. Oppenheimer — ^That Is only fair. Mr. Brower — We do not wish to take advantage of them in apy way; but the trouble is, these gentlemen have been a bit persistent in trying to put themselves in the position of premier in the industry. They are one of the largest in the industry; we appreciate that, but we have seven others we have to take care of. Our Job is not done until we have completed the whole Industry through. Mr. Bouse — We thoroughly agree with you on that point, Mr. Brower. Dr. Kirchwey — I think there should be no difficulty in adjusting that. Mr. Bouse — If there is any exhibit, Dr. Kirchwey, that the gentleman wishes to look at, we have no objection. Dr. Kirchwey — All right. It is perfectly fair and square, and in the second place, would it or would It not be agree- able to you on both sides to exchange the briefs, including your last brief? Mr. Brower — Yes. Mr. Kirchwey — That would, if course, involve the pos- sibility, that if you have introduced new evidence, they might ask for an opportunity to rebut that particular evidence. Mr. Oppenheimer — ^That would be only fair. Mr. Brower — All right. Mr. Bouse — We feel this way, Mr. Brower — you at least give the l^pographical representatives the credit of being frank in what they say. Now, we feel this case, on the part of our side, going back to our original conference of August 26th, when we have particularly impressed upon you, Mr. Hurley then acting as Chairman of the Conference, says. "Now. then, und^r the provisions, it calls for ten holidays," That should read, "No^, then, under the scale provisions." The word "scale" should precede the word "provisions." On page 223 there is an omission, but I will go back to that later; I will look it up and call it to your at- tention. On page 322, in the first paragraph. "We have shown that the book and Job publishers have not been given many preferences." The word "not" should be taken out. It should be ' 'have been given many preferences. ' ' Dr. Kirchwey — That is right, Mr. Rouse — On page 331. the $46.00 in front of Cin- cinnati, Ohio, should go out. It is just a duplication. On page ,332, In the bottom paragraph, it should read, "both as to full-time weekly and hourly earnings," and that ends the sentence. Then it should read, "While the workers." Dr. Kirchwey — Strike out the word "and." Mr. Rouse — Strike ou the word "and" and begin the sentence with the word "while." It should read this way, "While the workers in the silk industry had during this period achieved an increase of 182 per cent, in their average hourly earnings and 163 per cent, in their full time weekly earnings, and while the workers in the hosiery," that has all been left out by the stenographer. That comes in between the words "in the" and "hosiery." On page 353, in the caps above the table, the word "Plate" should go nut. On page 382, next to the last paragraph, the stenog- rapher has committed an error that some compositors commit, when they do commit one. He has Jumped a paragraph. It should read this way. There should be another paragraph: "We know that these publishers can, in great measure, influence the action of the employers." Then there is another paragraph: "We know also that it is the publishers who are most persistent in their denial of an adequate increase." On page 223 there is still a correction which I will let you hnvo later. Dr. Kirchwey— Is that all? Mr. Rouse- That Is all at the present moment. On page 223, Doctor, If you will turn there, that wlU be the final correction. Down at the bottom of page 223, "After $50;00 per week," this Is omitted: "26 per cent, (or 148 workers) received between $51 and $55 per week." Then It goes on "And .the remainder." That is the conclusion of our corrections. We find a number of other minor errors, but they are mainly typographical, and I think the Arbitrator will detect them. Dr. Kirchwey — I can detect ordinary typographical errors. Mr. Brower — I think we ore ready now for your re- buttal, Mr. Brower— I shall present at the present time our rebuttal In two phases, the rebuttal and the sur-rebuttal, taking up at the moment, the rebuttal. As to the orfginal brief of Typographical Union No. 6, 1 will take this up by topics which are here numbered. I will read the num- ber as well. 48 1. The Union, in opening its brief, gives an historical sketch, of the Union's activities. On this history, the League has little comment to make. The benevolent features and war activities of the Union are recognizea, and its distinguished leadership ap- preciated, as already pointed out iu the original brief of the League. 2. The Union contends (and claims it is admitted by the Employing Printers' Association) that they are en- titled to an increase in 'wages, "The only difference," they say, "between us and the Employers affecting this contention is relative to ' the amount of increase we are entitled to." The League does not admit that the Union is entitled to an increase. The League has presented evidence on Cost of Living and economic conditions at the date of readjustment which confirms the position that no increase should be allowed at this time. (See Cost of Living and Economic Data in Exhibits "C" ~of Brief.) 3. Tlie Union contends that there is no actual down- ward trend, such decreases as have occurred being among seasonal'' commodities. In answer, attention is called to the index figures, to the curves reported by statistical agencies and financial journals. That there has for some time been a steady pressure on clothing prices and material decline resulting, ia now a matter of common knowledge. The low marks reached by corn, wheat and cotton indicate a downward movement outside of any purely seasonal change, such as might occur in a commodity such as sugar. Even the declines in a seasonal commodity such as sugar have been more material in 1920 than they were in 1019, 4. The Union contends that indications are that prices are going to still higher levels. In addition to this first contention that prices are going to still higher levels, the Union at a later point in its brief, presents the statement from Royal Meeker (Former Commissioner of Labor Sta- tistics), declaring that prices would remain high for sev- eral years to come. This statement was made by Mr. Meeker on January 4, 1920, before any price readjustment began and long be- fore the date for this wage readjustment, namely October 1, 1920. The intervening eight months have brought some distinct business changes, which vitally affect the basis of this wage readjustment. It is not maintained by the League that prices will at once (even within a few years) decline to low pre-war levels, but simply that there Is now some decline. It will be noted that Royal Meeker's statpmftut is not a prediction of continuing in- creases in prices nor even that the peak prices will be maintained, but of simple continuance materially above the 1914 levels. To Royal Meeker's statement, the Union adds the comment, "He is still supported in that vifiw by students of the cost of living throughout the country. The different agencies which are engaged in watching the movement of wholesale and retail prices of various commodities, are In agreement that prices will continue to rise and none of them are venturing an opinion as to when this upward tendency will stop." This statement was either penned early in the year before price changes set in or else takes no notice of the really recognized agencies. Such authorities as the Federal Reserve Bulletin, Dun's, Bradstreet's, the Annal- list and others have unanimously, for a number of months, recorded steadily declining prices, and readjustments to lower levels. 5. The Union contends that of all the organized trades, theirs is the most skilful and most exacting; that it requires the most skill and Intelligence. The League makes no attempt to discountenance the skill required of members of this Union. It is a justified pride similar to that held by every Union. Since exact comparisons can not be made this concession of superior skill may be conceded to each Union. This point of relative skill and intelligence required is not relevant to the case at issue in which changes in cost of living and economic conditions are the basis of readjustment. 6. The Union contends that its piembers are the most poorly paid of all skilled craft. Under war conditions, certain industries by virtue or their strategic position were able to advance to posi- tions relatively higher among industries. The printing industry as such was not a war-child and did not occupy a strategic position of this nature. Yet, In spite of this printing holds, from wage standpoint, a high place among manufacturing industries. As given in the New- York State Department "Labor Market Bulletin, for September, 1020 (page 7), the printing group is excelled by only two others (among manufacturing lines) namely: (1) Water, light and power and (2) Stone, clay and glass products The average weekly wage for all manufacturing trades is shown for New York City to be $28.44 as c^- trasted with the compositors' weekly wage of 545.00. The highest weekly earnings appearing in the bulletin are found in the miscellaneous stone and mineral prod- ucts' work, where we have a high wage combined with great irregularity of employment. On the other hand, fn the compositors' wage for New York City, we have a still higher weekly wage combined with great reg- ularity of employment. Some lines of the building trades are found to be at present above the compositors' level, but they must he recognized as belonging to those trades now feeling the benefits of great activity, resulting from the large amount of building called for after the late war, due to curtailing of construction during the war period. They are at present strategically located in industry. (Exhibit EE-1). 7. The Union further contends that other Unions have received greater increases than Big Six, and (as stated later in the brief), that Big Six has. dropped in its posi- tion relative to the other Unions. This is freely admitted by the League and raises the question of the interrelation of Big Six and the other Unions. The pinch of high prices has come most severely on the lowest paid group of wage-earnei's, and hence the increases here have been the largest. Employers, not alone in printing, but in many industries, have recog- nized the obligation to meet the increased cost of living for the whole industry. Hence those low paid groups feeling the pinch most severely, have received the largest percentage Increases. This variation is clearly seen in the following figures on grades of pay in the coal mining industry (Hocking Valley District), as given iu Bulletin No. 8 of the Bureau of Applied Economics. (Page 13) (Exhibit EE-2). Rates per day 1914 1st Blacksmith 3.12 2d Blacksmith and Carpenters 2.81 Blacksmith Helpers, Dumpters and Trimmers 2.62 Greasers and Couplers 1.56 1920 6.27 5.75 4.&4 % Increase 101. % 112. % 120. % 197. %. In the case of the United States arsenals workers, we find the following variations iu per cent, of increases. (Page 11) (Average for five arsenals). Exhibit E£>-2. 1914 Machinists 3.65 Machinists' Helpers... 2.32 Machinists' Operators 2.28 1920 % Increase 6.48 4.48 0.10 77.6% 93.1% 123.7% Note: (1) These are both lines of work that were war- childreo, under heavy pressure for war work. (2) Under normal conditions these are also lines of great iiTegularity of employment. (See State of New York, Department of Labor, Special Bulletin No. 85, July^ 1917, page 26. Exhibit EB-S.) (3) Though not a war-child, and though highly regular, (See State of New York, Department of Labor, Special Bulletin No. 85, July,- 1917, page 28. Exhibit iBB-3), in work the Compositors' wage in 1914 and again in 1920 was higher than any of these groups listed, namely, |4.07 per day In 1914 and $7.50 per day in 1920. In the majority of cases of wage readjustments, the rule has Ireen to allow the heaviest of increases to the lowest paid groups. The situation in the printing wage readjustments then is not a case of discriminatiop against one particular Union, but a phase of the' recognition of all industries that they must meet the pinch of the high prices most severely felt by the low paid groups. The League calls attention to the variation in per- centage increase previously allowed as computed by the Union and by the League. The Onion estimate on the increase is 81 per cent, while the League figures 84 per cent. The former wage schedule was from $24 to $26. a w*»ek. The League, in arriving at the 84 per cent., has taken the weighted average of the $24 to $26 rate, according to the number of men involved, which gives an actual Increase for the entire Union of 84 per cent, in contrast with the Union figure of 81 per cent., which must have been based upon the average increase over the $24- $26 scale weighted, according to the number of men involvd, differently than that used by the League. 8. The Union presents also that there are conditions in New Ynrk existing nowhere else; such as long dis- tances to travel and necessity of renting their homes. Tliese two conditions are present in all large cities and because of the transportation system in New York are not more severe here than elsewhere. The locations of the retail stores- from which food price data was col- lected show that the Union members are distributed throughout the usual residence districts and are not sub- ject to conditions of travel peculiiir to them and to no other New York workers. The necessity for travel to and from work is not a condition peculiar to New York printers as such, but is incident to all life in the Metropolis. 9. The Union claims that from 1896 till 1919 the value of the dollar declined from 100 cents to 32 cents and that corresponding Increases in money wage have not been made. Also the Union calls attention to the fact that we are at present paying approximately twice as much for everything os in 1914. This change in the value of the dollar can only be estimated by reference to index numbers as to changes 49 in prices. Such material has been presented in the ex- hibits covering the changes in the cost of living. Informa- tion as to earlier changes in the value of the dollar are not included inasmuch as this readjustment has reference only to the changes in costs of living occurring since the last wage contract vpns made, effective January 1, 1920. Changes from 1896 to 1919 may be of Interest, but obviously are not relevant to this case, since changes must be related to index base of 1914 and adjusted to base of Jnnuary 1. 1920. 10. The Union presents the fact that the January 1, 1920 scale was adjusted on Government figures, showing increases in living costs of 83 per cent. Then later, the figures were raised to 103 per cent, which left the Union behind the difference between the two. The League holds that this scale of January 1, 1920 was not adjusted solely on the basis of cost of living. Growing out of the "vacation" period taken, a combina- tion of factors entered in, including among others, the condition of the Industry and cost of living. The issue involved is whether, in the adjustment efCectlve January 1, 1920, the intention was to give the full increase in the cost of living, or were other factors considered. The League contends that in view of the fact that tbe settle- ment of January 1, 1920, was not on a cost of living basis solely, that this change in tbe Government figures should not be reflected in this readjustment, especially in view of tbe agreement whereby the present readjustment is on a basis of the change in cost of living from January 1, 1920 to October 1. 1920 and the economic conditions of the Industry at the date of readjustment. 11. The Union claims that the Employing Printers have already offered a $4.00 Increase. In order to open the way in conciliation proceedings, to have both parties discuss without restraint, offers and counter offers, thereby endeavoring to arrive at a settle- ' ment, it has been the understanding that such offers of counter offers, unless specifically set forth ' in the "Agreed Statement of Facts" would not be binding on either side. To make this entirely clear, the League in its offer of $4^00 made September 23, 1920, set forth that the offer was made contingent on acceptance in concilia- tion and if the case went to arbitration, that tbe offer no longer held and arbitration would be from the basic scales of January 1, 1920. The reason for this procedure is clear. Under any other, there might be a reluctance to make any offers at all where there was a chance of arbi- tration. (See League Brief, Exhibit A-7). Tbe atten- tion of the Arbitrator is also called to the additional state- ment made in the rebuttal that this "offer was made on the crest maximum peak cost of lining basis, and without full knowledge at that time of the extent to which the price recession had actually gone, the information not being available." 12. The Union calls attention to the fact that stereo' typers and electrotypers have been awarded a scale of $59.00, an increase of $11.00, and are already enjoying a 44-hour week. The League maintains that tbe wage of electrotypers was not granted in arbitration, but under pressure in conciliation ^ because this craft was in a key strategic position to enforce its demands, with employers still en- deavoring to pass on the increase to customers, as shown by their recent revised price sheet. It is contended that the time for passing on to thn public the increases in printing and other industries has reached its limit and the market for printing is now a buyers' market, and the scale, because of the special circumstances governing the adjustment, can not be taken as a precedent for action in this case. There is also a further situation in respect to this Union. In the minds of some of our people, the electro- typers are in the position possibly somewhat akin to the photo-engravers, which, perhaps, is a well known condition ■to all of you, where there seems to be a League or Union between the two divisions, employer and employe, for the purpose of establishing a fixed scale which, under severe penalties by either one side or the other, can not be varied from; and whereby some of our people suspect that whereas the electrotypers were forced, they were not very reluctant to be forced. At any rate, it is a fact that they have an organization that seems to function by putting out a fixed price list, and which is not deviated from by anybody, in so far as this organization knows, and which seems to argue something more than a general business competitive situation. We feel that that com- pletely segregates that condition from the condition of the printing business, and therefore makes it in no way comparable with the printing business. 13. The Union further brings up the Newspaper award, in which the rate was raised $11.00. The League holds that this represents partly a dif- ferential that has always existed between Book and Job, and Newspaper compositors in New York City, and partly increasing costs of living upward trend at that time. Quoting from Brief of Typographical Union No. 6, in this Newspaper award case (May, 1920). "There had always been a great diflereptial between the commercial (Book and Job) printers in New York and the Newspaper printers. There were various and numerous causes for this, condition, all of which tiave, op to this date, not been eliminated and some of them probably never will be." Dr. Kirchwey — What is that quotation taken from? Mr. Brower — The brief of Typographical Union No. 6, in the Npiwspappr Case, May. 1920. They point out that the Newspaper printer can not lead the normal life of the Book and Job printer. "Racing with the clock," they say, "is the printers' (Newspaper) every day indoor sport. His product of today must be sold today. Even the product of the morning is valueless in the afternoon. A train missed, and the paper is unsalable. Applica- tion, concentration, and a high tension is tbe requisite of a man in a composing ' room of the modern Metropoli- tan newspaper." (Exhibit A-9, pages 114 and 115). Quoting further from this Exhibit A-9, page 117: "In addition, tbe book and Job proprietors have agreed to and signed a scale provision instituting a five-night week fo forty hours (a reduction of five hours per week) and a forty -four hour week for day work (reduction of four hours per week) with no reduction in pay, on May 1st, 1921. This will result in the fact that beginning from May 1st, 1921, the book and Job night workers will work five hours per week less than the newspaper night workers; the latter being a majority of the men covered by tbe contract under consideration at the present time. In addition to all this, there is a further agreement to reopen the scale for readjustment according to tbe cost of living figures on October 1st, 1920. Bear this in mind. The book and job scale will be reopened on October Ist, 1920, whereas this proposed scale will not terminate until March 31. 1921." Dr. Kirchwey — That is to say, the scale of the news- paper compositors. Mr. Brower — Yes. They were arguing on at that time. Mr. Rouse — Will you permit of an interruption? Mr. Brower — Make your notes and bring it up later. The award was made effective April 1, 1920, at a time when the cost of living was still advancing and previous to the steady decline of the past few months. (See Exhibit D-2. League Brief). In this connection, It occurs to me to point out that with the gradual increase given to the newspapers re- ferred to, growing out of that arbitration, raising their scales to the figures heretofore quoted, that by comparing the scales now existing with the scale that existed in 1914, the present scales will show an increase over the 1914 bafl*» of but 83 per cent. 14. The Union accepts the Government figures, with qualifications. The statement made by tbe Union that "We did accept and do accept Government figures, as a basis," is imme- diately followed by, "It is well known to all that have any knowledge of economic conditions, that those figures are not correct when applied to the City of New York." These Government figures, as a matter of fact, are so qualified that they cease to be Government figures at all. With their qualifications, the Union has arrived at cost of living figures different from any other source. The League rp-emphnsizes the fact that the United States Department of Labor is the only impartial com- prehensive available source, and should be used, and not figures of Typographical Union No. 6, of 145 per cent., which are all out of proportion to any Cost of Living figures of the Department of Labor. 15. The Union presents the result of a study of the cost of living (reference to food and rents) made among its members. In this study, thft Union, of course, rejects the Gov- ernment's official figures as to increases in food and rent, and substitutes figures manifestly compiled by a partisan source and for a partisan purpose. On food, for example, the Union arrives at a figure of 148 per cent, (secured by study of a few miscellaneous stores), as contrasted with the United States Bureau of Labor Statistics' figure of 119 per cent, for July 1, 1920. To leave the impartial Oovernment figures and substitute the results of a partisan study is to open up a veritable Pandora's box with reference to the problem. It should be noted here, also, that four of the Unions have definitely accepted the United States Government figures on these points: the Unions accepting tbe impartial Government fig- ures being: (1) Paper Cutters Union, No. 119; (2) Bindery Women's Union No. 43; (3) Mailers Union No. 6; and (4) Printing Pressmen's Union No. 51. In this agreement, it was Jointly declared that "among the present available published data, the figures of the U. S. Department of Labor, Bureau of Xabor Statistics should be given precedence'* and that "taken as a whole, they are the most comprehensive and impartial available." In connection with that, two of those Unions that had previously accepted them, asked to be released from the acceptance of the cost of living figures, the two Unions being Bindery Women's Union No. 43 and Mailers Union No. 6, and we released tbem from tbe acceptance. The Union has furnished a large amount of data on increases in rents covering some 500 cases. The same criticism is made of this data as of all the cost of Uving material that the Union furnishes, as being from partisan sources and the League again refers to the latest figiu^s of the U. S. Department of Labor, given in the Monthly Lftbor Review for September, 1920, page 78, (Exhibit B-2-b). Recognizing ' the controversy over these figures, 50 an effort was made to get from the Department of I*bor the basis on which they arrived at their conclusions. It Is found that the Department of Labor collected data on 583 houses located in all parts of New York City; that they use the bouses that were in the hands of the same agents from 1914 to date of study. They admit that they had not included the houses that had changed hands, and that rents had increased in some of these cases in greater proportion than In some of those that remained in the same bands. They also point out and emphasize the natural inclination in making a study of rent changes to "always hear of the extreme cases." The Government figure can not be ignored, and considering their impartial- ity, they should be taken as a basis rather than the parti- san study of Typographical Union No. 6. (Bixhibit BB-1). 16. The Union also contends that, "It is well known by the wage earner, and admitted by all students of the economic question, that the term 'cost of living' in its last analysis, is a synonym for 'cost of existence'." If by the term "cost of existence" is meant a "bare sulKistence," then the above contention can not be admitted. A "living wage," as accepted and used by economists. Involve a decent living, including therein a pro- portionate share of the comforts of life. Such Is the standard involved where by law the attempt has been made to establish even a "minimum wage.." As computed by ofBcials and students "cost of living" is based on the "American Standard" and not on mere existence. Reference is also made to the fact that the I^eague's estimates on cost of living were based on the study of 18 budgets compiled by the Bureau of Applied Eco- nomics, and brought up to date by the U. 3. Department of Labor and National Industrial Cdnferenee Board figures. (See Ezhihit A-8, of League Brief). 17. The Union goes to great length to explain the intricate skill required of the compositor, likening the composing room to an immense organism necessitating the perfect functioning of the individual parts. The League recognizes, as before stated, this pride which nnch Union has in its trnde. and does not wish to dis- countenance the skill required. It should be noted that the entii^e printing industry may be likened to this "immense organism," the individual Unions being parts of it. In their effort to maintain the perfect function- ing of all the parts, the employers have allowed the heaviest increases in wages to the lowest paid groups where the pinch of high prices was most severely felt, and they maintain that they have provided for the func- tioning of those parts Inasmuch as the increase allowed in wages to the Industry !>s a whole, Cthe Union In- creases being proportionately weighted), has been 113.33 per cent., an amount actually in excess of the present cost fit living level on a 1914 base. 18 The Union makes the point that the work of the printer is particularly unhealthful, the dangers of tuber- culosis being especially great. ^^ ^ ^ As qualifying the Union's contention (even though not involved in these Issues), it should be noted that on page 94 of tho supploment to the August number of The Typographical Journal," (the oficial paper of the Inter- national Typographical Union of North America) a table of statistics is given showing a change in the average age at death among typographers from 41.25 years m 1900 to 53.17 years in 1920. (Exhibit EB-4). , , ^ Bulletin No. 207, by the U. S. Bureau of Labor Statistics gives the following summary, m ascending order, of the average age at death, bookkeepers and office assistants, 36.5. . ^^ . „^.„^ ^.^^ ■Dr. Kirchwey— Pardon me; that is the age at which the average person , j,. t *»v» st Mr. Brower— In those trades die as I take it Dr. Kirchwey— Bookkeepers at the age of db 1-2 ; Mr. Brower — Yes. the the the Enginemen and Trainmen (railway). 37.4 Plumbers, Gas Fitters and Steam Fitters 39.S Compositors and Printers • Teamsters, Drivers and Chauffeurs '|-' Saloon Keepers and Bartenders *'■" Dr Kirchwpy^What a pity that such a healtful occu- "'lir Br°oweniathin1sTs!*«.9; Longshoremen and Steve- dores, 47T^extile Mili Workers, 47.6; Iron Molders 48 ' Painters, Paper Hangers "« Varnishers 48.6, Clear Makers and Tobacco Workers, 49.5; Bakers, so. »,, RaUway^a'-k and yard Workers, 50.7; Coal Minere, 51 3 Laborers, 52.8; Masons and Brick Lwers, 56 llacks^ths 55.4; Farmers and Farm Laborers, 58.5 Averaee for all occupations. 47.8. *^^S« ^nrt Fa/mera 'They are also seen to be well above ?he average for an occupations, as witness 53 7 (average the =J?"/.^tJ''%iTen by the Typographical Journal for *S« ..»:L l^^'^H^^rCon) compared with 47.9 (a^|^»f|/f, members of the Union) compared "t "eath for all occupations given by V. ^T: mrciiwey-There are no statistics, are there, employing printers? for Mr. Brower — We have not been able to discover any, Doctor. Mr. Rouse — I might say they never die, Doctor. Mr. Brower — Summarizing this part of the brief. League wishes to sum up and re-emphasize; (1) In view of declining prices, the refusal of public to buy, the acute depression in various lines, apparent further declines in sight, the drop of the De- partment of Labor peak figure of 119.2 per cent, below the level of January 1, 1920, that the cost of living factor at this time is more than ofEset by present economic condi- tions. (2) The cost of living data as presented by the Union though voluminous is of such a partisan character and so entirely at variance with Governmental figures that it must to a large extent, if not wholly, be discounted. (3) The League's otter of $4.00 was made in concilia- tion contingent on acceptance in conciliation and with the understanding that arbitration would be on the basic scale of January 1. 1920. (4) The wage scale of Typographical Union No. 6 is Inextricably tied up with other printing trade unions now in arbitration. In conclusion in view of declining markets, decreasing cost of living, acute economic depression, unemployment becoming serious, the League urges that in accordance with the specific conditions set forth in the existing scale contract with Typographical Union No. 6, that no wage increases should be made at this time. Here is a memorandum of the order of the various ex- llibits in connection with this. I do not think it is necessary to read that. In numbering the exhibits for the rebuttal the same classifications have been followed as in the original brief: A — Represents Records B — Represents Cost of^Llying C — Represents Economic Conditions D — Represents Awards B — Represents Miscellaneous material The exhibits used in the rebuttal are as follows; BB-I Letters on Rent, U. S. Dept. of Labor BE-1 Labor Market Bulletin, Sept., 1920 EE-2 Bulletin No. 8 — Bureau of Applied Economics BE-3 Special Bulletin No. 83 — ^Dept. of Labor N. Y. State EE-4 Typographical Journal, August, 1920 The only one of these documents which the Union might find difficulty in duplicating is Bulletin No. 8 published by The Bureau of Applied Economics, Washington, D. C. A copy of this is in the hands of the arbitrator. Dr. Kirchwey — That concludes the rebuttal that you were prepared to offer at our last session? Mr. Brower — Yes. Dr. Kirchwey — And you wish now to offer a further snr-rebuttal to the rebuttal for argument of the Union at the last session. Mr. Brower — Before I proceed with this rebuttal, it seems to me that I should point out the handicap under which we have been working in endeavoring to answer the brief unseen. We were taken a bit unawares in being excluded from the brief. We appreciate tlie fact that it was a technical right of our opponents to exclude us from seeing that brief. But our dealings with other Unions had led us astray a bit in that there had been such a friendliness and entire good will to cooperate in every way to 'tring out all of the facts, and with the widest arrangement with each one that we would take notes of topics or principles that occurred to us, being of com'se guided by the exhibits that we were given access to, but in no way to meet, other than as we happened to remember them, over this period of time, such statements or suggestions as exclusively appear in the brief. Therefore, we would suggest and ask that if, when you take up these matters and find in the brief some matters that we may have seemingly overlooked, not to consider that they have been overlooked by us Intentionally, but because we were helpless in the matter; and that if you need information or knowledge on those matters, that you will undertake to get it by inquiring from us or from a further meeting, whatever in your judgment seems wise. We simply make this request in order that we might not be foreclosed from answering something that seems pertinent or relevant with respect to this case, but which we are not in a position to do. At the present time, we take up, under those handicaps, the sur-rebuttal upon the rebuttal of our opponents. To simplify the presentation of this sur-rebuttal of the argument and data submitted by Typographical Union No 6 in its answer to the League's brief, the exhibits have been arranged according to a few general headings under which all the material can be classified as follows: I. Interrelation of crafts in industry. Basis at January 1, 1920 settlement. Cost of living. (a) Change in cost of living. (b) Budgetary standard. II. III. 51 IV. Eoonomie conditions. (a) Ecouomic conditions in general, and their relation to printing. (b) Printing economic conditions, in particular. 1. Unemployment. 2. Financial statements of printers. 3. Statements of periodical publishers. 4 . Reports f rona advertising agen cies. 5. Statements of book publishers. 6. Trade Composition Branch. 7. Statements of supply houses 8. New equipment as a reflection of pros- perity. 9. Effects on production of 44-hour week, 10. Andrews' speech to the U. T. A. 11. Few failures in printing. 12. Baltimore Clothing award. 13. Judge O'Hara's award to Cincinnati compositors. V. Wage comparisons. (a) Premium wages to printers. (b) Increases to printers in 137 cities. (c) Comparison to other industries. (d) Book and job against newspaper scales. VI. Offer of $4.00 increase in conciliation. VII. Union exhibits to which no sub-rebuttal is made. VIII. Sum-up of the League's case. Appendices: A. Union exhibits numerically classified. B. League exhibits numerically classified. I. Interrelation of crafts in industry. The Union contends that the League's statement on the Allied Printing Trades Council is in error in that the Council acts only on matters conceniing the Union label. The point to the League's evidence on this 'question was not that the central Allied Printing Council acted on wage matters or any other matters specifically, but that interrelation is shown by the mere fact that such an organization is in effect. It is inevitable that cer- tain policy questions should clear through this central body even thnugii constitutionally there la no power to enforce. The League accepts the principles laid down in the , Five Cardinal Points submitted as one of the Union exhibits. These cardinal points were approved by the International Joint Conference Council of the book and job branch of the printing industry — which Council is made up of the International Unions of which the locals now in arbitration are members.' The Cardinal Points definitely recognize the interrelation of the various crafts in the industry and emphasize that it is the industry. which must be considered. No individual Union can take the position that it comprises the entire industry. No Individual Union can disregard this Interrlation and con- sider itself as compromising the entire industry. No further emphasis seems necessary on this point of craft Interdependence and interrelation. References: Original League Brief, pages 3 to 8* in- clusive, and Eixhibit A-S. II. Basis of January 1, 1920, settlement. The Union submits that the settlement of January 1, 1920, was on a straight cost of living formula, and that they failed at that time to get a full increase. The League submits a letter from Mr. William Green, which in substance states that he was misquoted; that the settlement of January 1, 1920, was a dicker; that the readjustment of October 1, 1920, was to be based upon the increase in the cost of living and the conomic conditions of the business; and finally, that where he gave the difference in percentage, it should be given in points. I think that means that where he is quoted as giv- ing the difference in percentage, it should be in points. Summed up again, the point .at issue here is whether or not the measure of the increase-in-the-cost-of-living factor outlined in the contract should be the difference between 84 and whatever final cost of living figure for October is used, or between 103.81 per cent, and the October .figure. The League contends that the wage settlement of Jan- uary 1, 1920, with Typographical Union No. 6 was not on a straight cost of living basis, but took into considera- tion other factors as did the settlement with the other Unions at that time. The best indication of this is the fact that the increases ranged from 84 to 175 per cent, for the individual Unions involved with a final weighted aver- age for all of the Unions of 113.33 per cent. Obviously, no straight unmodified cost of living formula could have been used as is now contended by Typographical Union No. 6. The League maintains that the wage scale as fixed in the contracts as of January 1, 1920, is the scale being adjusted, and the difference between the 103.81 per cent, of December, 1919, and 99.80 per cent, as of October 1, 1920, or an actual decrease of 1.9 per cent, rather than an Increase is the cost of living figure to be used. References — Sur-Rebuttal Exhibit No. 1, 1-A Original League Brief, Exhibits A-2; A-8; B-2-C. Exhibit No. 1 is a letter from Mr. Green, dated December 3rd: "Concerning clipping from page 36, 'Advertising and Selling' issue of September 4, 1920, purporting to quote me in my remarks to the National Publishers Association on August 23, 1920. "Until you called my attention to it I had never seen nor heard of the so-called quotation of my remarks in 'Advertising and Selling.' I don't know where they got it — certainly not from me — but at that it is pretty nearly what I said and fairly correct as trade reports go. If the quotation had included in my remarks that the settlement was to be based on the cost of living and the economic condition of the business, and had in each ease instead of saying 'per cent' said 'points,' It would have been practically correct, though what my random remarks and equally random prophecy should have to do with the present readjustment with Typographical Union No. 6 is more than I can understand, particularly as our negotiations with them last Winter finally ended In a dicker." Signed William Green. Mr. Rouse — Rather ambiguous. Mr. Brower — (Continuing reading): III. Cost of living. (a) Changes in cost of living. The Union submits that the cost of living October, 1919, is 83.1 per cent, over 1914 ; 303.81 per cent, figure U. S. Department of Labor figure of December 1, 1919. increase over 1914 not issued until May 1, 1920; small drops in cost of liv- ing of little value to consumer; clothing dealers profiteers; memorandum cost of living agreements League with other Unions carry figure of 119.2 per cent; wholesale prices not index; Massachusetts cost of living higher for September than August; newspaper clipping quoting Secre- tary Orane of Retail Clothiers Association that clothes may not fall. (Union Exhibits 1. 3, 4. 10, 16, 17, 18, 20— See Union Exhibit Index Sumniary ) . Bulletins No. 844 and No. 879 on the cost of living from the U. S. Department of Labor, the same source as used by the Union, show downward changes far in excess of the penny drops discussed by Commissioner Ethelbert Stewart. The big clothier, Samuel Brill, quoted by Typographical Union No. 6 as admitting profiteering, states definitely, in the newspaper article introduced, as evidence, that clothing prices have beeen materially redpced and will continue to be reduced uijtil they get back to normal prices. An advertisement of his firm on December 3, 1920, shows reductions of 26 per cent to 42 per cent in clothing. The figure of 83.1 per cent. — October, 1919, increase over 1914 is recognized and used as a factor, but the settlement of January 1, 1920, included other conditions. The figure of 103.81 per cent, issued by the Department of Labor in May, 1920, was plotted in its proper place on the chart submitted as League's Exhibit B-1, as it should be. to show the actual trend of the curves on Jan- uary 1, 1920, and now on October 1, 1920, and not to convey the impression that that figure was available as of that date, and therefore considered by the League in its settlement of January 1, 1920. Little comment is needed on this sort of charge because it must be clearly evident to the arbitrator that in making up the set of curves the Government figures used were from two weeks to three months old, but were placed where they prop- erly belonged as to date and amount. Drops in cost of living are not small. 119.2 per cent. in memorandum agreement with other Unions was sub- mitted in League's original brief. Its introduction by Typographical Union No. 6, according to their statement, was for the sole purpose of showing that retail and not wholesale prices should be used as basis for cost of living. The League agrees. Wholesale index figures on chart (Original League Brief Exhibit, B-6) were included to show pronounced drops in basic commodity prices, which presage inevitable drops in retail prices except when wholesale drops are very slight, which is definitely not the case in the present situation. The extent of the drop in wholesale food prices is indicated in the cost of living chart of The Annalist of December 6, 1920. The cost of living in Massachusetts did increase August to September, according to the Massachusetts Commission on the Necessaries of Life, but their most recent data shows that the decrease September to October Is greater than the increase between August and September, and the October, 1920, index of 194.9 Is lower than any since the March index of 193.4. Secretary Crane, of the National Association of Clothiers in a later statement appearing in the New York Tribune, November 8, two days after the newspaper clipping sub- mitted by the Union, says that clothes are being sold at greatly reduced prices throughout the country. Also, a letter from Secretary Ctane, dated December 4, 1920, says in part: "Everyone knows that retail prices of clothing have been greatly reduced and that reductions of 40 and 50 per cent are by no means uncommon " References: Original League Brief, Exhibit B-''-c 52 Sur-Kebuttal Exhibits 2-2A-3-3A-4-4A-5-SA-5B. This Brill advertisement referred to was taken from the World. Mr. Rouse — The one we used, where he spoke of cloth- ing dealers being profiteers, and where the Doctor said "He ought to know." Mr. Brower — Here Is a curve showing the continued reduction. Dr. Klrchwey — Down to what date? Mr. Brower — Down to December 6th. Showing an abrupt steady decline. Mr. Oppenheimer — Wholesale prices ? Mr. Brower — Yes. Mr. Douglas— It is in the Agreed Statement of Facts that the wholesale prices were not to be considered. Why submit such evidence? Mr. Oppenheimer — President Wilson, in his address, spoke of, the drop in wholesale prices, but said that It would not affect the retailers for six months or more. Mr. Brower — I am speaking for the moment. Let me finish and you can make what memoranda you choose. Mr. Oppenheimer — We Just call attention to the fact that they are wholesale prices. Mr. Rouse — And that the League a moment before in its brief agreed to accept the retail prices, and not whole- sale prices. Now you are submitting evidence on whole- sale prices. Dr. Kirchwey — I shall look over all these exhibits. ■Mr. Brower — ^On the cost of living data, only In respect to the economic condition of the industry, the wholesale prices are very pertinent 'as showing dependency, Mr. Brower — Exhibit No. 4 is a report from the State of Massachusetts showing a recession from September to October, a photographic copy. Dr. Kirchwey — Is that also as to wholesale prices? Mr. Silcox — No; they are based upon retail prices ac- cording to the Massachusetts Commission on the Neces- saries of Life, simply in answer to the rebuttal already submitted. ' Mr. Brower — Exhibit 4-A is the Merchants' Association purvey, showing the cost of living in New York, and whereby they work out from retail prices the cost of liv- ing basis of 199.76 here. That is from the Bulletin of December 6th. Exhibit 5 is the quotation from the Tribune two days after the quotation quoted by our friends, and it reads: "Big Clothes Price Drop Seen.'* "Ofl5clal says Dealers will lose to meet Demands." "Irving Crane, Secretary of the National Association of Clothiers, yesterday made public the results of a telegraphic questionnaire which shows, he says, that clothes are being sold at greatly re- duced prices throughout the country." Here is the letter from Mr. Crane, dated December 4th. Dr. Kirchwey — Addressed to whom? Mr. .Brower — To our Association, through Mr. Silcox: "The article in the New York Tribune of November 6th, 1920, which quotes me refers only to the wholesale price of clothing. At that time I predicted that although the wholesale price of clothing would be reduced on November 15, prices would not absolutely be slaughtered and suits would not be given away. "Everyone knows that retail prices of clothing have been greatly reduced and that reductions of 40 to 50 per cent are by no means uncommon." Signed "Irving Cranp." Mr. Rouse — Have you tried to buy any, Mr. Brower? Mr. Brower — No, not yet. This is the original as sub- mitted by our friends here in this same case, November 6th dated article. (Continuing reading) : (b) Budgetary Standards. The Onion submits a budget standard of $3,036, then shows 46 weeks at $63.00, the scale demanded gives only $2,898, or $138.00 short of the budget; furthermore, that 48 weeks at $45.00 gives $2,0T0, or $966.20 short of Typographical Union budget standard. The Leigue submits that budgetary standards do not enter into the present readjustment since the cost of living factor in the contract specifically states "increased cost of living," meaning the increased cost of living from January 1, 1920, to October 1, 1920, and nothing else. It it does not mean just that, why any contract terms at all? In any case, the League anticipating that this question of budgets would be raised by the Union submitted, m Its original brief, as Exhibit B-8, the results of eighteen dif- ferent surveys made by various public agencies, compiled and brought up to September 1, 1920, by the Bureau of Applied Economics, on the basis of U. S. Department of Labor and National Industrial Conference Board figures. The average of the eighteen budgets is somewhat less than $2,000 a year. The maximum budget i| ^at for Government employees in Washington, D. C, — $2,647 — tne one cited by the Union. The fact that the budget sub- mitted by the Union is so very much greater than any other budget of the eighteen, together with the fact that the data was worked up by Typographical Union No. 6 for Itself subjects all of the Union's material on .this mat- ter to serious question as to its impartiality. The League again submits that the whole question of bnileetary standards at this time is quite irrelevant and that the readjustment for October 1, 1920, is based on specific conditions of the contract as related to the two dates set forth, namely, January 1, 1920, and October 1, 1920. The question of the 46-week work-year involves directly the question of unemployment and it will be covered under that general subject. References: Original League Brief, page 17, and Ex- hibits A-2; B-8, IV. Economic Conditions. (a) Economic conditions in general and their relation to printing. The Union submits that the gloomy economic conditions in general pointed out by the League do not apply to printing and that "the industry" as used in the contract means "the printing industry." The League submits that "the industry" as used in the contract does mean the printing industry, and the fact was recognized In its original brief where, in defining economic conditions, it stated: "Economic conditions in general and the printing industry in particular," Ob- viously, the printing industry is not in an economic vacuum, but being a service industry is directly dependent on the prosperity of the basic industries and is vitally affected by any conditions which affect these industries. Mr. Ctanes H. Sabln, President of the Guaranty Trust Company, says in the Deceiiiber issue of that firm's pub- lication: "The process of defiation must include all the elements in the body economic sooner or later, and there can be no escape from the inexorable law which directs It. Dodging the facts or attempting to postpone the In- evitable will not bring Immunity to anyone, whether his Interest lies in production or distribution, capital or labor." The present economic conditions, fully ' covered in the original brief of the League, are now too much of an Industrial commonplace to need further emphasis. ' References: Original League Brief, Exhibits C-l-a to k. Inclusive, Sur-Rebuttal Exhibit 6. The article of Mr. Charles H. Sabln underlines the parts that have been quoted. (b) Printing economic conditions in particular. The Union submits that the printing industry shows not only no effect of the general economic conditions, but on the other hand is prosperous with an outlook which ' is bright, it not rosy. To prove their contention, they offer data showing the small amount of unemployment in Typographical Union 6; a fragmentary financial state- ment of the Industry from a few selected Dun's and Typo Mercantile Agency reports; copies of "Rate & Data Serv- ice" showing increases in rates and larger subscription lists; pages from Printers' Ink, giving volume of adver- tising in agate lines; costs to advertisers of special pages in certain periodicals, namely. Pictorial Review, V(^ity Fair, Delineator and Designer; optimistic reports from advertising agencies concerning the outlook for future business; New York Times clipping on expansion and Profits of Mergenthaler Company; references to "American Printer" and "Printing" showing purchase of new equip- ment; rate sheets of Machine Compositloji Association show- ing increases for October over February; extract from article in New York Times on Ford plant to show Increased production under shorter hours; award of Judge O'Hara In Cincinnati, to indicate that economic conditions "are unsettled and uncertain and all estimates are necessarily speculative"; optimistic speech at United Typothetse of Amei-ica convention by B. P. Andrews, President of Na- tional Paper Trade Association. (Union Rebuttal Exhibits 6. 8. 11. 15. 25. 2oa. 26. 27. 28. 29, 30, 31. 33. 34 and 34a.) The League submits that the printing industry during ;he past year had a rebound out of war repression, and reflected the general economic condition of rising mar- kets, active buying, increasing costs, credit infiation, and the like, common to all industries, and at this time re- flects general economic conditions which show declining prices, contraction of credits, refusal of public to buy even at decreased prices, and the like. No amount of optimism or the painting of rosy pictures on records of the past can be taken for a basis of settlement now in face of known conditions. Furthermore, the direct cus- tomer has been burdened to such an extent with increased cost that the industry can no longer pass further increases on to the buyer of printing. Taking up the points made by the Union, in their order as classified in the index: 1. Unemployment. The Union introduces a survey of Typographical Union No. 6, made by Mr. Patrick J. Honan, Supervisor, Depart- ment of Labor, New York State Industrial Cpmmisslon. This survey shows the following facts — In April, there -B-ere 8,943 employed in the Union; 540 in other businesses, and 232 idle. Mr. O'Connell — We are incorrect in that 540 in other businesses, Mr. grower. It is in error. Mr. Brower — 540 is the number of members in business at some other trade, or on pension. In September, under the various three heads, there were 9,041 — 541 — and 276. In October. 9,020 — 542 — and 202. The average is 9,001 — 541 — unemployed average 237. These figures presumably t.nken from representative months, show an active membership of 8,460, and an average unemployment at 237 for the three months given, which is a percentage of unemployment of 2.8 per cent. The Union also presents the point that the average number of weeks worked by their membership during the year is 46.7. Allowing ten days, 1.4 weeks, holidays there is left an unemployment of 3.9 weeks yearly, or an unemployment of 7.5 per cent. Evidently the Union fig- ures of 2.8 per cent and 7.5 per cent can not both be true. The League call s attention again to Exhibit Cf-2-e of the original brief showing a change in the total number of employees in 165 plants from 14,868 in April, 1920, to 12,995 in October, 1920— a decrease of 1,873 or 12.5 per cent. In addition, figures submitted to the League within the last few days l>y 109 plaiits show 56 operat- ing below capacity, affecting by slide days or reduced hours 2,547 members of Typographical Union No. 6. Thes*, 109 plants in January, 1920, employed 2,702 Union printers; in April, 1920, 2,763; in September, 1920, 2,662, and in October, 1920, 2,547 — the least at any time during the year. These reports tell of further reductions since Oc- tober and show a general anticipation of even greater curtailment in December. Specific instances of unemployment in the printing in- dustry in New York City are: The shut down of Colliers Book plant affecting nearly 400 Union people; Carey Press, operating five day week— affecting approximately 700 peo^ pie; F. Hubner & Co. — at present working half their force and elimination of overtime; Giles Printing Co., two- thirds idle. References: Sur-Rebuttal, Exhibits 7, 7A-E. Mr. Douglas — Hubner — what did you say about them? Dr. Kirchwey — At present they are working half their force and elimination of overtime. Mr. Rouse — How many men have they in their employ? Dr. Kirchwey — It does not state here. Mr. O'Connell — In the Giles Printing Company, we have no members. Dr. Kirchwey — You will have an opportunity of answer- ing and meeting these statistics with your own, if you ^Jesire. I ^r, Brower — This is the letter of Colliers, November 26th, a photostatic copy: * "It occurred to me that possibly the following infor- mation would be useful to you. We are closing our en- tire book plant tomorrow (that is November 27th) until January 1st. This will affect nearly 400 union people, compositors, electrotypers, pressmen and feeders, and all unions connected with the book binding industry. It is absolutely necessary for us to do this as we find that we can not sell our books in the quantities that we have in the past at the price that we have to charge for them. We are offering books for sale that were manufactured out of material purchased at a low price before the increase but the low production and high cost of labor makes it impossible for "us to market these when offered without one cent of profit." Signed "Mr. Wilder." Here is the letter from the Carey Printing Company, a photostatic copy, of which I merely read as follows: "P. S. (Signed "Mftx Rosett") In this connection, it will probably interest you to know that, whereas we kept our force intact and worked a full week until about the 1st of October, since that time we are working five days a week, and we are not holding back any work, neither have we sent any work out of town to he printed; and this, despite the fact that none of our hereinbefore men- tioned new equipment has yet been delivered, with the ex- ception ,of the one press which we bought for Immediate delivery on June 3rd." The Patterson Press, letter of December 7th: "* * * but our cylinder press department has been running not over one-third capacity for about two months, working five days per week with a minimum force of men." From Hubner & Company, November 24th; their address is 54 Lafayette Street — phone 2-3-4-9 Frariklin: "In reply to your inquiry of even date, beg to inform you that for a short time, Just before election, we did^ some political rush work, which, owing to the short tim? we had to turn it out (about two or three weeks) we were compelled to put in some overtime, but since com- pleting same, and even prior to that, business has been exceedingly slack, and we are at present working with a ""Ug more than half of our usual force." m:. Rouse — Giles has no composing room. Mr. Brower — I will quote just one paragraph from Giles Printing Company's letter, dated December eth: "Two-thirds of our presses are idle now, the oth^r third ' working full time. In a few days, however, the entire plant will be idle." -Here is a sur^vey and analysis of the 109 plants, giving the names of the concerns here in New York, all of the concerns referred to. This is Typographical Union's Ex- hibit. We^call it 7-E. 2. Financial Statements of Printers. The Union maintnins that It is at a distinct disad- vantage in the presentation of data on the economic con- ditions of the industry. This disadvantage is smaller than it appears on surface analysis. The assumptions are that the League Committee handling wage matters have access to the books of their competitors which is not the case; that the fragmentary examination of the books of a few plants or the assembling of a few selected reports from Dun's can be used to show the economic condition of the industry. Modern industrial processes have brought about mass action — in production, selling, collective bargaining, in fl. nancial analysis and the like. To determine even approxi- mate economic conditions of the printing Industry would require the same mass action, a survey broad enough to cover a large group of plants — good, bad and indifferent- small, medium size and large — book plants, periodic^s. Job printing and combination plants. Tae industry is not as yet wholly articulate as to its economic conditions. Educational work is being pushed aggressively by the in- dustry to get a uniform standard cost finding system gen- erally adopted. Such a move is fundamental and must precede any really sound survey for the data when col- lected must be compiled, analyzed, and interpreted in the terms of the same common denominator. The size of such a task can be somewhat appreciated in view of the effort made by the printing industry in New York early in 1920 to "know itself" through a sur- vey. This survey extended over a three months* period, covered 797 commercial printing establishments, required 20 cost accountants, and cost $20,000. The final state- ment was a composite of the reports from the individual plants which gave their statements only on the condition that the details as referring to the individual plants be confidential, the information to be used only in the form of a composite statement. The undertaking of this sur- vey, for the double purpose of getting economic informa- tion and of stimulating better business methods in the Industry, is an indication at least of a constructive, sin- cere and earijest effort to get the facts. The results of the survey have been included among the original ex- hibits of the League brief. They show an industry of a large number of small units, few cost-finding systems, ignorant and aggressive competition, 41 per cent over- equipment, and an average profit on cost production of 2.16 per cent. The Union has raised the question of examination of the employers' books. Realizing the necessity for access to original sources and the fact that it indicates an awakening of the Printing Trades Unions to the appre- ciation of the importance of "the economic conditions of the industry," as a factor in wage adjustments, the League would welcome an analysis of economic conditions in the form of a comprehensive survey. Sucb a survey would have to be undertaken through a jointly agreed upon firm of high grade public accountants; it would have to be at least as broad as the United Typothetee of America Survey; It should cover a period of five years to get a true picture; it would have to be issued in the form of a composite analysis, assurances being given to the individual concerns that their particular reports will be kept confidential. Obviously, no such examination or survey, no matter how desirable, can be made for this arbitration because of the limit of time. The League appreciates the reasons prompting the submission of the fragmentary financial data by Typographical Union No. 6, and realizes the ex- treme difficulty of getting such data together, whether done by the Union or by the employers. The best that can be done in this case is to take the broad, economic index factors, such as declining markets, price recessions, slowing down of demand, lay-offs and the like, in the in- dustry itself and its interrelated and interdepeudent groups, such as the periodical publishers, the advertising agencies, the book publishers, the trade composition branch and the supply houses. G. Statements of the periodical publishers, imphasis is laid by the Union on the increased rates I volume of advertising in magazines. An analysis of the data submitted shows that while some periodi- cals show a gain in advertising in November, 1920, over November, 1919, an equal number show a decrease. Tak- ing the figures from the Union exhibit, comparison is possible for sixty-two periodicals of national circulation. Twenty-six of these show an average gain in advertising of 18.78 per cent; the other 26 show an average loss of 19.58 per cent or .82 per cent more loss than gain for the 62 publications. The loss of 1920 is measured as 7,240 agate lines. Letters from the periodical publishers show that the general loss of advertising matter has only begun. Mr. Oppenhelmer — You said 26 was one-half of 62, is that right? Mr. Brower — The other 26. Mr. Oppenheimer — ^You said just one-half, and you gave the total as 62. Mr. Brower — I will scratch out one-half. It is not exact. There is no intention to misrepresent. Mr. Oppenheimer — 1 realize that. Mr. Brower (Continuing reading) — Letters from the periodical publishers show that the general loss of ad- vertising matter has only begun. Long time contracts have been responsible for holding up advertising which only now,, at the period of new contracts, is feeling the real force of generally depressed economic conditions. Cancellations have been numerous and diminished space demands are general. Beginning with 1921, all magazines will carry fewer and smaller advertisements, while the 54 existence of some seems jeopardized by the reluctance of advertisers to pay the required prices. Increased subscription and advertising rates are ad- mitted by the League in regard to a good many publica- tions. Such increases, in most cases, were offset by ad- ditional production costs. Beginning with the war, manu- facturing costs in every line began to rise until, early in 1919, production expenses were at a point never before reached. The result was the exorbitant cost of living which, in its turn, brought the highest wage level in the history of American industries. Periodical publications felt the effect of expensive raw materials and machinery and the high wages granted the printers. Pacing pro- ductive costs of unprecedented size, the owners sought pro- tection for Invested capital in increasing the magazine rates to advertisers and readers. E-ven if 1920 did. In general, prove a prosperous year for publishers, the same can be said of clothiers, automobile manufacturers, textile mills and metals. These industries have already paid for 1919-1920, and the mass of cancellation letters received by publishers in the last month indicate that printing is about to go through the same experience. At least one maga- zine has already been forced to lower its price in order to hold Its subscribers who, seeing decreases in all other commodities, insist that printed goods be cheaper. McCture's Magazine in January will be 15 cents instead of 25 cents. The fact is emphasized here that always the periodical publishers have the alternative of going out of New York and that many publications have already left New York. In other words, the printers neither have any lasso on the publications, or any legal processes whereby they can restrain them from going out of town. If it is economically necessary, or economically advisable for them to go out of town and stand the annoyance which could come through such a course, they are certainly perfectly free to do 90, and they seem to be doing it today in increasing numbers. References: Sur-Kebuttal, Exhibits 8-8A to 8-E. Exhibit 8 is a chart of the agate lines of advertising in 62 magazines from April to November, 1919 and 1920, from "Printers Ink," where it has been compiled, show- ing the rise and the abrupt drop. The red is 1919 and the black is 1920. Dr. Kirchwey — A drop in the month of July and then it started up again in August and went up to the end of October. Mr. Brower — Correct. Dr. Kirchwey — And then dropped during November. Does this bring it up to the end of November? Mr. Brower — I have noticed that sometimes it does not show whether they refer to the beginning or the end of the month. ■Mr. Silcox — That is up to the end of November. Dr. Kirchwey — This is based on the total number of agate lines of advertising in the 62 magazines? Mr. Silcox — Yes, and this small chart shows the gen- eral trend. There is always a dearth of advertising in the summer months. Mr. Brower — ^These are copies of sheets out of "Print- ers Ink," from which that was made up. Mr. Rouse — Those are the same as our copies, aren't they? Mr. Brower — Yes. Exhibit 8-C is a clipping from the New York Times of December 3rd. quoting from two pieces therefrom: "A step toward lower prices in national magazines was noted yesterday when McCture's reduced its price from 2o to 15 cents " • • • "A reduction of ten cents on the price of McClure's Magazine wiU be made beginning with the January issue, bringins the price down to 15 cents, it was learned at the ofBce of the McClure Publish- ing Company last night." Exhibit 8-D, "Mechanical Engineering" went out of town. Here is one of their editorial pages from the issue in which they announce their going out of town, and then reasons for going out of town. I do not think it is neces- sary at nil to quote it. ■ , ^ , *„„„ (.„ They frankly state that they are going out of town to save money, that they have been well treated by the WiUiams Printing Company where they have had their work done, and they have not any regret; at least, go with considerable regret having had good service from them, but it becomes necessary for them to go out of town in order to sav<» money. Dr. KIrchwey-May I ask whether these concerns that are moving out of town are going into a community where the wage rate is materially lower than it is here? Mr Brower-I will quote from the people who are taking the "Mechanical Engineering" at Ea^ton, Pa. This is thS letter from the Bschenbach Pnoting Company, at Baston. Pennsylvania, dated November 24th: "I am in receipt of yours of the 23d inst. addressed to me, and in reply I am very glad to give you the following information : "1 The basic wage scale in Easton is as follows: Compositors, $30.00 to $33.00. Cylinder Pressmen, $30.00 to $3o.00. Cylinder Feeders, none. The pressmen do the feeding. Job Pressmen, $30.00. Job Feeders (there is no such employe. The pressman does the work). Cutters, $30.00. "The present contract with the union was signed in De- cember, 1916, and expires December 1 of this year. Men were getting,' according to the contract in 191S, $20.00, but we have voluntarily raised them in intervals of three to six months periods until now the lowest paid man is get- ting $30.00. They have been raised according to ability, and some of them are getting $35.00. The machinist men are getting as high as $40. "Baston is a town where the composing room, pressroom and bindery are all in one room, and the men, when they enter the trade, are not supposed to be journeymen until they go through all the parts. Therefore, our pressmen are compositors as well; and one man takes care of the make-ready and the running of one-cylinder press. The number of presses in the town has grown to such an extent ' intil now there is an agitation for a Pressmen's Union, .nd, if it goes through, there may be a change in the iethod of handling our presses. "We have automatic feeders, but, ns stated above, the reesman takes care of the press including the operation [of his feeder. "The union have presented demands for $45.00 wage with a provision for a 44-hour week starting the first of May, 1921. We offered them $30.00 and the 48-hour week, which was rejected. Last night we offered them a $37.00 waga with the 44-hour privilege eliminated^ and the contract to be up to April 20, 1921. "We figure at this time we would be in a better position to decide whether we wanted to fight the 44-hour week. We are unalterably opposed to it as it is not a question of hours but a question of wages. If the 44-hour week is adopted generally throughout the country we will, of course, concede it here; otherwise we will not. We will say that this is practically a closed town as far as the union is concerned. The seven shops in the town who have workmen other than the proprietors themselves have a signed contract with the union." "Eschenbach Printing Company." Exhibit 8-D is a list of periodicals that have gone out of town and of those that have discontinued. Mr. Rouse — Since when? Mr. Brower — Since October, 1919. Dr. Kirchwey — Have you the dates given so that we can determine whether any have gone recently and how many? Mr. Brower — We have the detail from which this was compiled. Whether that detail gives the date at which each specific one went out of town I do not know. Dr. Kirchwey — Of course, as a bearing upon this arbitrar tlon it would be desirable to know that, would it not? Mr. Bouse — Absolutely. And would the employers fur- nish the Arbitrator with the publications that have come into town recently? F'or instance, "Town and Country" has come into your shop, which is a very fine publication, a very high class publication. It has increased its adver- tising rates. Dr. Kirchwey — Perhaps that is your sur-rebuttal. Mr. Oppenheimer-^Unless the dates are given the testi- mony is not worth very much. We want to get through with this arbitration some time. Mr. Eouse— We don't want an endless arbitration pro- ceeding. Mr. Douglas — Dr: Kirchwey — I trust that you will con- fine remarks to the gentlemen that are here represented. Dr. Kirchwey — I do not understand your suggestion quite. Mr. Douglas — Well, there are some men, perhaps, that might want to enter this controversy wbo are not duly authorized to appear before you. Dr. Kirchwey — I was not aware of the fact that any- body had taken part in the discussion who was not a representative. 'Mr. Douglas — You will see and note all the appearances on our record there. It tells you who is entitled to ap- pear here. Dr. Kirchwey — What I am more concerned about is to get at the real significance and relevant facts, and it is for that reason* that I raised the question as to the re- movals from the City of concerns during the period in which I am interested. - Mr. Rouse — Correct, Doctor, and those that have come in since that time. Mr. Brower — This is introduced for the purpose of showing one of the economic factors of the industry. Dr. Kirchwey — The question Is, during what period? Mr. Oppenheimer — The economic condition of the indus- try at the time of the readjustment. Mr. Brower — We will check these up, if it is desired. Dr. Kirchwey — If it seems worth while to you. Of course, it would gain very much in weight in its bear- ing on the controversy if it appeared that a considerable number of important removals from the City had been made recently because of the conditions of the industry at about this time. If they were all made, or most of them made a year ago or eight months ago, you can see, can you not, that that would not have any particular bearing on the problem which you are putting up to me. Mr. Brower — Except in one way, Doctor, and that is that there is a conceded amount of unemployment. If 55 busineBs is leaving this City and going elsewhere, that may toe one of the reasons for unemployment. To us it seems that this is, therefore, a pertinent factor, pointing out the fact that there may be a point ^lere of diminish- ing the income to the crafts and industry here of getting it to such a point that the portion of that industry that can leave town because of economic reasons is doing so, and that there is incumbent upon both factors of this in- dustry, in our judgment, the necessity to liye by it, not from it. but away from it. 'We can check up the dates, but these publications have discontinued or have gone out of town. We would be very glnd to do so and submit it here. A number of them, I believe I am safe in stating, have gone out of town perhaps earlier in the so-called fiscal year, back to O'ctober; and because of the increases that have come since, increases in our costs due to wage in- creases at that time granted. It may be that some have gone out recently. It is my understanding that this par- ticular one, E/Schenbach Printing Company, went out of town nt somewhat of a delayed period because of the fact that the people to whom they had gone were unable to accumulate the additional printing presses necessary to take care of the volume of their business until recently, and that they have just gone recently for that reason; that they made their arrangements several months ago, and the people there have gotten together the equipment and presumably are now ready to take care of them. So, if it is your desire, we will gather and determine as near as we cnn. thf dates. Dr. Kirchwey — I have no desire in the matter. My only question is as to the importance which you desire to have me attach to this particular exhibit; and I can only say that the closer these changes in industry, these re- movals, are to the period with, respect to which I have to pass Judgment, the more weight they will have, naturally, with me. I simply put it to you as a matter of reasoning. If you desire to press that feature of the evidence, I think it would be desirable for you to make it as clearly relevant to the period of time in vphlch I am interested, as you cnn, Mr. Brower — I shall be very glad to do that, but we do feel that it is very important. It is a considerable volume of business represented by these periodicals, that has gone from our midst, purely for economic reasons, and in spite of annoyances and inconveniences attendant upon publications away from the editorial ofiSce. It seems to us that it shows the trend of the economic factors of our industry, and that we can not ignore it, however we might wish, to do so. If the work is not here to be done, we have no work; or, we have that much less work as an industry for the representatives of this Union and other Unions that will be doing the work on those publications. It seems to me that it is very rele- vant with respect to the economic condition. I do not believe it is necessary to read all these, a list of five periodicals that have been discontinued, and thirty-eight that have removied from New York, stating in same in- stances where they have gone. Dr. Kirchwey — It will not be necessary to read them now. 4. Reports from advertising agencies. The prosperity of the periodical publisher is dependent upon the volume of advertising his publication carries. Practically all national advertising is handled through es- tablished agencies. Reports from a number of adver- tising agencies, including those mentioned by the Union, show actual retrenchment and cancellations, and a general reluctance on the part of clients to make future contracts without reduction in costs, which costs are determined at least in part by the e»pensp nf printing. References: _ Sur-Bebuttal, Exhibits 9-9 A to 9-B. This is a letter. Exhibit 9. from Critchfleld & Company. I do not believe it is necessary to read all of this. I will read just an extract from it. It is all here, and you may see its context, and it is not given any meaning other than thfi text allows it to havp. Dr. Kirchwey — That is one of the adyertising concerns that was quoted in the rebuttal the other day, was It not? Mr. Rouse — Not by us. Mr. Brower — It was quoted by No. 23. *'The volume of advertising in magazines generally will be reduced at a minimum of 33% per cent and a maximum of about 50 per cent for the year of 1921 and that is borne out by final revision of orders that have been given to us by our customers within the last thirty days." This is dated November 29th, this being, as I under- stand it, a, general circular letter. Mr. Rous*' — Who is it addressed to? Mr. Brower — George B. ^Richardson, Vice President of the Lifp Publishing Company. A photostatic copy of a letter from Lord & Thomas, being a circular letter sent out by them, dated November 25 th: "In our mutual interest we deem it wise to call your attention to a situation which confronts us now. "In making up schedules for the coming year, the most conspicuous feature with old advertisers is the increased cost of space. It varies In different mediums, but on our largest long-established schedules the increase will average some 33% per cent. "This comes at a time when other costs are decreasing. When profits in most lines are greatly reduced and some- times wiped out completely. When the customers of most advertisers are demanding great reductions, and are hold- ing back their orders to obtain them. And when we are clearly facing a period of lower prices. "Naturally the advertiser looks to the publisher, as to all othpr people from whom he buys, for his Just share in this pending readjustment. "Advertising appropriations can not be Increased to meet this added cost. Some advertisers meet the situation by cutting down their schedules. Some are omitting mediums which can best be spared. Some are crossing out mediums where the advance seems excessive. Some are changing their class of mediums. But there is a distinct and in- creasing tendency to take with publishers the same atti- tude as their customprs tnke with them. That is, to pause in their advertising— to ask for reduction—Just as jobbers, retailers and consumers are now doing in prac- tically every line. "Neither you nor we can afford to have such a spirit develop. Yet it seems logical and inevitable, if the pub- lishers alone hold out for prices fixed when conditions were very different. "It seems to us that the publishers, like the adver- tisers, must face this readjustment. Prices must come down. Then each must, in the best ways possible, read- Just his costs. Nearly all of your patrons are doing these things^ and they can not regard you as exempt. "That being so, the inevitable move should be made at once. Advertising in many lines will tend to decrease in this period of depression. You can not afford to have it further affected by an opposition to high prices fixed under other conditions. "Your advances were met without complaint when ad- vances were general. They can not be maintained with- out complaint in the present situation, or without wide- spread rebellion. "These are factors which confront us most acutely now, and it seems to us that our mutual interest requires your prompt consideration. ' ' Dr. Kirchwey — To whom was that letter addressed? Mr, Brower — General circular letter to Publishers, dated in Chicago, November 2eth. Letter of December 3rd, Exhibit 9-B, from the Literary Digest. Dr. Kirchwey — To whom? Mr. Brower — Addressed to the Executive Secretary of the National Publishers' Association, dated December 3rd. * 'Attached to this letter is a statement showing the advertising now on our books from leading advertising agencies for 1921 and the number of advertisers carried in 1920 who have already renewed their contracts for 1921. "In our opinion only the strongest and soundest adver- tising accounts have sent us renewal contracts and we believe that most of the advertising scheduled from these agencies will be inserted as ordered. "However, as a matter of record we have received two very Important cancellations from the George Batten Com- pany this week and they are pressing us on behalf of two other clients, one of whom has a non-cancellable order. "There is absolutely no question but what "the first few months of 1921 will be serious months for publishers and, in our opinion, the momentum lost in these months will not be made up by us because during the entire year of 1920 we averaged 138 pages per issue. These issues were large and It is impracticable from the reader's view- point and because of lack of equipment for us to increase this average in the last nine months or the last six months of 1921 to mnke up the losses." Signed by "William J. Ryan, Advertising Manager," and sworn to before somebody. These are specific cases of cancellations, as I under- stand, attached to that letter of the Literary Digest. George Batten Company, total business 1920, 70,774 lines. Before December 31st, 1919, bought for 1920, 66,122 lines Now on December 4th. 1920, have bought for 1921 52,014 lines A loss of 14,108 lines Ninety-fouf ppr cent, of 1920 space or practically all of it was bought before the end of 1919. Twenty-four adver- tisers used space In 1920. Fifteen advertisers are now on books for 1921. , Of the 14 renewal orders for 1921: 4 are using the same space as 1920, 5 are using more space, and 5 are using less space. Therefore we estimate now that our business with Batten for 1921 will show a loss of. 20 per cent. Critchfleld & Company: Total business 1920, 31,527 lines. Before December 31st, 1919. there was bought for 1920 26,484 lines On December 4th. 1920. they hnve bought for 1921 3,114 lines A loss of 23,370 lines Eighty-four per cent, of the 1920 space, or practically all of it was bought before the end of 1919. Sixteen ad- 56 vertiBers used space In 1920. Four advertisers are now on the books for 1921. Of the three renewal orders for 1921, all are using less space than in 1920. Therefore, we estimate now that our business with Critchfield In 1921 will show a loss of 80 per cent. Lord & Thomas: Total business, 1920, S3,488 lines. Before December 31st, 1919. there was bought (or 1920 37,763 lines On December 4th, 1920, there was bought for 1921 24,434 lines A loss of 13,330 Unes Seventy per cent, of the 1920 space was bought before the end of 1919. Twenty-seven advertisers used space In 1920. Fourteen advertisers are now on the books for 1921. Of the fourteen renewal orders for 1921, four are using the same space as 1920; two are using more space, eight are using less space. Therefore, we estimate now that our business wltb Lord & Thomas in 1921 will show a loss of 60 per cent. Federal Advertising Agency: Total business of 1920, 16,732 lines. Before December 31st, 1920, bought for 1920 7,524 lines On December 4th, 1920, bought for 1921 7,676 lines An increase of 152 lines Forty-flve per cent, of the 1920 space was bought before the end of 1919. Seven advertisers used space in 1920. Five advertisers are now on the books for 1921. Of the 5 renewal orders for 1921, three are using the same space as 1920, and two are using less space. Therefore, we estimate now that our business with the Federal Advertis- ing Agency in 1921 will not reach the volume of 1920. Mr. Douglas — It might show more. Mr. Brower — Here is the data of those four advertising agencies combined and plotted here, showing the volume of business in 1920 as 172,521 lines and in 1921, 101,053 lines. Dr. Kirchwey — That Is the amount anticipated for 1921? Mr. Brower — That is what is now placed for next year, comparing it with last year. It is being placed a year ahead of time. Mr. Oppenheimer — We are not quite through witb 1920 yet. Mr. Rouse — ^They compare it with 1920 and 1919, but we are not through yet with 1920. Dr. Kirchwey — By delaying the arbitration to January 1st, 1921, you might know a great deal more. Mr. Bouse — It might be very advantageous to us. Mr. Brower — Going back to sub-division 3, referring to the periodical publishers, I desire to add or refer to Exhibits here pertaining thereto, under the head of 8-B. Dr. Kirchwey — In the brief that you have submitted: you give sur-rebuttal exhibits 8 to 8-B. Mr. Brower — That should have added, to 8-B. There Is 8-C. T>. E: A to B. really. This is from the Cosmopolitan dated December 4th, ad- dressed to Frederic W. Hume, who is the Secretai*y of the National Publishers' Association: "I am giving you herewith some figures, as follows; "Exhibit A: 1. Comparison of Cosmopolitan's lineage, January, March and, April issues of last year with January, March and April issues of this year. "2. Advance business scheduled on December first for March and April issues of Cosmopolitan last year, and advance business scheduled on December first for March and April issues of Cosmopolitan next year. "Exhibit B: Complete list of the cancellations Cosmo- politan Magazine has had since the first of July. "Exhibit C: Similar facts about Harper's Basar, Hearsfs and Motor. Signed "J. Mitchel Thorsen." "COSMOPOLITAN": Lineage Exhibit A. 1. January, 1920 24,742 January, 1921 17,385 March, 1920 50,183 March, 1921 23,418* April, 1920 45,689 April, 1921 25,950* Each of these surveys or statements for March and April, 192], of course, are for business up to December 4th. Dr. Kirchwey — That is to say, business already placed with them. , Mr. Brower— Already placed, their business being con- tracted for ahead very materially. In connection with that, I think It will be referred to in some of these exhibits, I would like to refer to it here, to make sure. The increase of advertising rates, when announced, are not effective generally for a long time ahead. Very often, one year ahead, because of the character of the business and the method of contracting which is here shown for a year's business. The result is, that when a PiW'?''" auDocinces increased rates, he does not get the benefit of those increases except as contracts expire, and new con- ti'acts take their place under the increased rates. Mr. Oppenhelmer— I wish to call the Arbitrator s atten- tion to the fact at this time that that does not apply to our exhibits, as our exhibits call for one-time insertion "*Scheauled. December 4th, 1920." and those rates go into effect immediately. Our exhibits do not call for contract rates at all. Mr. Brower — I think you can bring that up at the regular time, if you do not mind. Mr. Oppenhelmer — It is just as good now. Mr. Brower — I appreciate that it is just as good now, but I think I am entitled to as much courtesy as I gave you. I did not interfere with your case. Mr. Oppenhelmer — I am not interfering with you, Mr. Brower. There is a statement. You made several state- ments contrary to our brief. We have been very courteous. Mr. Rouse — Dr. Kirchwey, just to clarify the situation, please, if you will refer to the first proceedings before you, it was agreed that there would be no interference in the presentation of the case, but that there would be, in the rebuttal argument. Now, we have not availed ourselves of that privilege, and we mean no discourtesy to Mr. Brower, and are well pleased to go right along. I do not think Mr. Brower is justified in his criticism of my colleague, because books will end in a serious reduction of the making of books. The publisher has reached a point where he is unable to_ hand on the ad- ditional cost of manufacturing books to the public, for the simple reason that the public has taken tjie position of the proverbial balky donkey, who sets his feet in the ground, and permits his head to be pulled ofif before he proceeds further. In other words, It is our absolute opinion that the pulilic have set their face against fur- ther increased prices; and that the trend of the times is logically downward, not upward. Any organization of manufacturers as of labor unions who set themselves in a bull-headed way against nature, will suffer the natural consequences." Dr. Kirehwey — ^Who writes that? Mr. Brower — E. P. Dutton & Company. December 3rd, Samuel -Gabriel Sons & Company: "Believing that many publishers in lines similar to our own are meeting an experience such as we are having, we felt that you might be Interested to know our present trade condition. There has been a very marked 'falling off' in trade this fall in our lines, because while many commodities are coming down in price, it is, unfortunate- ly, impossible to reduce the cost of merchandise similar to our own. Printing is such a large factor in the make-up of our class of goods, that until some reduction in this direction can be brought about, we greatly fear there will be no possibility of publishers reducing their prices. We must confess that the outlook for the coming year is, for this reason, none too cheerful, and we greatly fear that with prices continuing , to decline in other lines, it will be impossible for the publishers to hope for much trade, unless they can acquiesce to what is, , Tvithout doubt, the universal cry these days for lower prices. We will be, glad to have your views in the matter, and hope that you can give us some encouragement. Needless to say, that until printing prices become more normal, there is very little incentive and even less hope of publishing new goods on a broad scale." December 3rd, 1920, Harcourt, Brace and Howe: "We hope the effect of present printing costs on the output of books will be taken into consideration in con- nection with the wage scale of the printing trades. "We have set up and electrotyped' and printed 104 new books this year. Because of high costs, we have cut our list of new plates for next spring to 16 titles, and among these are no large and elaborate Jobs such as we have tried to make profitable during the past year. "This situation has an effect not -only on the amount of work to be done in printing establishments, but also, perhaps, upon the public interest in having new books of importance find their way freely into print." Henry Holt and Company, December 3rd: "• * * ^e wish to submit to your attention a couple of considerations which we believe to be general in the publishing business, and which we therefore think ought to have some influence on thp final decision. "At the request of the National Association of Book Puhllshers we submitted, some time ago, figures to shovv the approximate am6unt of decrease in our printing and binding orders this year due to high costs of manufacture. This was done at a time when it had not yet appeared that our selling prices had reached the maximum. The chief curtailment we had then to report was in books of sterling worth but small sale. We also reported increased diffi- culty in selling to England due to high sheet prices. Of late, however, the situation has grown worse instead of better. The recent fall season has shown, in our opinion, that the public will not stand for any further Increase in prices of books, and more than that, that it is even willing to forego, to a considerable extent, the pleasure of buying books at the present prices. The continued and growing objection to prices has consequently not only caused us uneasiness this fall, but has forced us still fur- ther into the conservative attitude reported to the Na- tional Association of Book Publishers. Our future plans, based on present printing and binding costs are, in other words, even more restricted than before. Should costs go up again we could do even less than the very small amount of manufacturing we now contemplate for next year. In fact, now that prices seem to have reached their highest peak, we are approaching a limit In this process of increased cost, and if it continues we may soon see an end of all real enterprise in book publishing. "In other words, since trade conditions are now even worse than they have been heretofore, we strongly urge that, if the true interests of all concerned in the book business are considered, this is emphatically not the time to increase costs." Boni & Llverigbt, Inc., December 3rd: "We merely wish to let you know that this fall season has been a very dull one. An increase in prices will simply mpan that we will have to cut our spring list 50 per cent." 6. Trade Composition Branch. Whether periodical publishing, book printing, or Job work, the trade composition branch doing linotype and monotype work reflects directly the volume of printing being done. The Union Introduces rate sheets issued by this Branch to show Increased rates of prices made ef- fective October 11, 1920, over February, 1920. The evi- dence itself is not questioned, but the contention of tbe Union that thi« increase was in anticipation of increased labor costs is denied. The facts are that In June, this Branch began a cost finding Investigation which required four months. The result of that investigation showed practically every trade composition plant selling below actual production costs,' simply because they had had no co^t finding system: References: Sur-Rebuttals, Exhibit 11. This exhibit, dated December 7th, is on the letterhead of the New York Monotype Composition CJompany, because Mr. Lord is of that company, and also President of the Machine Composition Association. He signed this general statement on his letterhead. "Complying with your request for information on the increase In the suggested selling price for machine com- position, v?e wish to submit the following facts: • 'During the latter part of April , 1920, the Machine Composition Association started a campaign to induce the members of this Association to install the Standard Cost Finding System. This campaign met with very good re- sults and the Installation of the Cost Systems started In May. The work received good attention, and, after a period of four months, in -which the systems were in oper- ation, the Cost Bureau of the New York Employing Printers' Association presented to this Association a com- posite statement of costs, coverijig the months of June, July, August and September. The following is a list of hour costs as shown by this statement. "Hand composition, 2.59. per hour. Linotype compo- sition, 3.83 ^r hour. Monotype- composition, 5.09 per hour. "After receiving this report of average costs which showed the costs to be above the selling prices, the mem- bers of this Association concluded that if they were to remain in business it would be necessary to raise their prices." Signed "George F. Lord, President of the 'Machine Com- position Association," certified to as being correct by B. A. Kelly. Those are the same exhibits that the Union put in of the two scales of the Association. 7. Statement of Supply Houses. The Mergenthaler Linotype Company, referred to by the Union, is one of the largest firms furnishing equipment for the printing Industry. This company, along with others producing major equipment like presses, found itself forced to unusual production following the war be- cause during the war such plants were used for the manu- facture of military equipment, the printing industry going about two years without the usual amount of new machin- ery. With the resumed manufacture, following the war, the printing industry needed, and urgently demanded, equip- ment for replacement, and in filling these orders, the supply plants were stimulated into unusual action. It was a simple proposition of supplying a demand created by two years of under-production. This condition, and the present slackening of orders are explained in letters from the more Important supply houses. References: Sur-Rebuttal, Exhibits 12, December 6th, Mergenthaler Linotype Company, addressed to the United Typothetae of America : Mr. Rouse — Mr. Brower, may I Just ask you a question. Did I understand you to say in connection with the Mergenthaler people, that they made presses? Mr. Brower— I said, "and others who made major equipment like presses." . 64 f^^I"of«°"^®~"'^?^ ^^^^ °"*^ **»^ Mergenthaler Linotype typesetting machines. "and others making major equipment Mr. Brower — I said like presses." -In connection with the statistical records which you are gathering, as to the economic condition of the print- ing industry In this country, we comment on the comDoslne machine industry as follows: "The business of this Company— as the largest manu- facturers in the world of composing machines— is a fair index of the general condition of the printing industry "During the fiscal year, ending September 30, 1920, as you have no doubt seen from newspaper clippings, this Company made a good showing. This, however, was due in part to unusual causes which have no bearing on the prosperity of the printing industry as a whole. "During the war there was a falling off in orders for composing machines, both here and abroad. The Industry, so far as it could, 'carried on' with its old machinery, making as few replacements, and as few repairs as possible. This was particularly true as to foreign territory. "Following the signing of the Armistice, we were over- whelmed with orders for linotypes for extensions of plants ; for replacements of old linotypes by new onei ; and for repair parts for machines which, owing to re- trenchments on the part of the industry during the war, had not been properly kept up. "After the war, there was a greatly increased demand for machines in the United States, and a very large proportionate demand for machines for foreign territory. The printing Industry had almost stood still abroad for four or five years and, after the cessation of hostilities, it was natural there should be an exceedingly large and urgent demand for printing machinery of all kinds. "Our Brltisb Company, which normally would fill part of the foreign demand for linotypes, had been engaged exclusively in war work for four years, and required a certain amount of time to change its manufacture back to normal lines. As a result, on our American Company fell the burden, not only of taking care of its own ab- normal increase in business, but also the furnishing of lino- types and parts irhich normally would have been man- ufactured ) and supplied by the British Company, and this situation has continued during the past year. "The company has recently erected an addition to its factory. This was done partly to take care of the accumulated orders; partly to provide for the future growth of the industry the world over; but mainly to enable us to manufacture here, and carry in stock in all parts of the world, machines, supplies and repair parts ready for immrediate delivery. The financing of this new building was done through sources outside of the cash income of the business. "The business very largely has to be done on small cash payments and long credits, extending over two, three or four years; and, therefore, the fact that a responsible printer installs a linotype does not necessarily indicate that he is at the moment prosperous, or has the cash in hand to pay for the machine, but that he is preparing himself for the future. "While this company shipped a larger number of lino- types during the past year than the preceding year, a great many of these machines went abroad, and many that were delivered in the United States were in replacement of old linotypes and in extension of plants. "During the past few months there has been a falling off of linotype orders in tbe United States, which is a direct indication that the printing industry in the United States is less active than it was a few months ago. An- other indication of this condition is that collections in the industry have not been so good during the past few months. "In brief, from our observations, as reflected in our own business, the economic condition of the printing industry has been materially affected for several months past, and this is likely to continue for several months to come." November 23, 1920 — American Type Founders Company, in response to a letter from our Association to them, I assume, in connection with another case, as to the laying off of men: "The statement that we laid off 150 men is incorrect. We did lay off 75 men in the Kelly Press Department and expect to be obliged to lay off as many more during the next few weeks. So far we have made no reduction in wages; but certainly we will not make any increase. We operate 48 hours. "At our plant in Franklin, Massachusetts, known as the Golding Manufacturing Company, wages were reduced JO per cent, and about half the men laid off in tbe foundry and about 10 per cent laid off In the machine shop. We have also discontinued working Saturdays for the present at Franklin, and may go on a four-day schedule until busi- ness revives. "Export business Is almost entirely destroyed on account of moratoriums in Cuba and some other countries, and the 15 to 30 per cent exchange In effect in Latin countries and 5f> to 60 per cent in many other foreign countries. Nearly all of our foreign orders for Kellys and Golding presses have been either cancelled or indefinitely postponed. When a customer has to pay from 20 to 60 per cent higher price for American machinery on account of ex- i change, there will be very little American machinery sold abroad. We have also had a gtfod many cancella- tions and postponements of domestic orders." 8. New equipment as a reflection of prosperity. The Immediately preceding argument explains in part the addition of the equipment in various plants, mention of which was introduced by the Union as an indication of a prosperous printing industry. The replacement of anti- quated, worn out and inefficient machinery, to obtain economical production, is a necessary procession in any factory. Specific plants mentioned by the Union set forth such were the reasons for their purchases, rather than to accommodate increased volume of business. References: Sur-Rebuttal, Exhibit 13. The Butterick Publishing Company, Nov. 27, 1920: "We decided December last, to purchase 10 6-0 Miehle two-color presses which take 16 pages of our size and sell 14 of our old 1-0 presses, which take 8 pages of our size, for the following reasons : "40 to 45% larger production for approximately the same labor cost. ' 'Unusually good second-hand market. "We were able to sell our old smaller presses for at least as much as we had originally paid for them. We had at that time great difficulty in placing work with out- side printers and then only at prices that allowed of no profit on the advertising. "10 of the old presses were disposed of during June and July to the following concerns: "4 to The 'McGraw-Hill Co., New York. "2 to LaPlante & Dunklin, New York. "2 to The Kumford Press, Concord, N. H. * * * that is one of the concerns that has taken a lot of business out of New York. I suppose that is the reason. The Century has gone to Rumford to be printed. "1 to The Federal Press, Cincinnati, Ohio. "1 to The George R. Swart Co. , New York. They are middlemen, so I do not know where they sold it. "On account of business conditions, we have been un- able to dispose of the remaining 4. One has already been placed in storage; the others are on our fioor. When this change has been completed, we figure that our plant will be increased by the equivalent of 4% 1-0 two-color presses. "The 10 6-0 machines were ordered from The Miehle Company on December 23, 1919. Th^best delivery promised at that time, and it was a delivery which they made about two weeks late, was for the first press, July 15th, and a press each two weeks thereafter. "We were able to get 22 of the smaller machines on our floor, but only 14 of the larger ones. "This, with the change in .the method of our binding, forced us to hire additional apace," These were specified cases, I understand, that were referred to by our friends here. December 7th — The Nation Press Printing Co., Inc: * • * The facts are as follows : " (1) One 00 Miehle press was ordered last May to replace an old Cottrell press then broken down and not considered to be worth repairing. Delivery of this press has not yet been made. It does not represent an expan- sion due to growth of business, but is rather an item of hard luck, a necessary replacement to avoid a three-press press room." I suppose I ought to explain for the benefit of the Arbitrator, the meaning of the words "three-press press room" as against a four-press press room. It takes as many pressmen to operate three presses as four presses; and as far as the wage cost is concerned, it is more economic to avoid a four-press room. All of us work that way, trying to avoid odd presses for an odd man on the machines. That is all that is meant there. Mr. RousA — You do not have such a contingency in our department, though. Mr. Brower — ' ' (2) One Miller feeder is now being in- stalled. This is being done in* nn effort to reduce smnll job press costs to a point which will meet existing competition. "The above items constitute the plant additions other than minor items. "With regard to our volume of work we may say that it was necessary for us to cut our force about $500.00 per wf>*»k nn July 1st." Dr. Kirchwey — What concern is that you are reading from? Mr. Brower — The Nation Press. Mr. Rouse — You did not mention that the Nation Press has been operating on a five-day basis since last year, and that they are now paying' more than the scale and working less bouxs than any employing printer in New York city. Mr. Brower — I didn't know that. Mr. Rouse — They are working five nights a wepk and paying $48.00 for five nights. They are working 40 hours per week and paying $45.00 for 40 hours. Dr. Kirchwey — Then they have, in addition, democratized the industry by giving the workers a band in the manage- ment. Mr, Rouse — They stand in very high' esteem with us because they know the true story of a-ll that has trans- pired in the past, and were champions of our cause, and have gone further than any employer in this city. 65 Mr, Brower — r am surprised, then, that you were not in close enough contact with them to quote them cor- rectly. ' Mr. Rouse — I did not know that we had quoted them incorrectly. Mr. Brower — I understood you had quoted them as put- ting in new equipment showing increased expansion. Mr. Rousp — It shows expansion, doesn't it? Mr. Brower — They claim not. They say "hard luck." Mr. Rouse — Nevertheless, they are operating under the basis that we say, in the true spirit of democracy. Mr. Brower— In spite of that, I will have to read the rest of the hard luck. Dr. Kirchwey — See what we brought on our heads. Mr. Brower — "With regard to our volume of work, we may say that It was necessary for us to cut our force about $500.00 per week on July 1st. There was some in- crease again in September and October," but a further cut of $250.00 per week was made at the end of November. This is because .the volume of work in all except cylinder press department, is less than last spring." Dr. Kirchwey — I wonder that they should correspond at all with these employers in view of what Mr. Rouse has said. Mr. Rouse — I might add also. Doctor, that they ex- pelled them from their organization for being democratic. Dr. Kirchwey-^They do not seem to show much resent- ment, coming forth with this letter. Mr. Brower— And since that treatment, they are particu- lar in assisting us in getting at the facts. It shows in- tegrity on their part. They merely want to get at the facts. Mr. 0*Connell — ^They have a new manager. The com- pany has changed hands. There has been a reorganization. Mr. Rouse — It is virtually in the hands of Mr. Requa and his associates. It is a co-operative concern, virtually. Mr. Brower — We look forward with a great deal of in- terest to the results of the experiment. I will write down a prophecy and put it in my pocket. Mr. Rouse — I have their own statement here if you would like to read It, on their own paper. Mr. Brower — No, thank you. December 7th— J. C. & W. B. Powers: Dr. Kirchwey — Is that a city concern? Mr. Brower — Yes. ^ Dr. Kirchwey — ^A large one? ■Mr. Brower — No, small; all of these quoted are small ones. Dr. Kirchwey — Are you dealing with those that were referred to by Big Six? Mr. Brower — Yes. ' Mr. Rouse — Doctor, these references that they make are clipped verbatim from the paper known as Printing and Th^ American Printer, which are organg of the print- ing industry in this city, mainly the organs of the em- ployer. We will assume that they are telling the truth. Mr. Brower — We will have to prove that some of them are not. Mr. Rouse — Then you will have to blame it on your own organ. Mr. Brower — We are neither blaming you nor them. We want only the facts. Dr. Kirchwey — You may go on, Mr. Brower. Mr. Brower — "Regarding new plant equipment Installed by us in the Inst few years, we can advise that this was all replacement of worn out and antiquated machinery or material, principally consisting of composing room type and fixtures." Mr. Douglas — Mr. Brower, may I Just interrupt you here a minute and say whereas that letter may be truthful in relation to the press rooms, let me call your attention to this: J. C. Powers & Company has thought so much of the business that they have formed a new organiza- tion and now employ five more men of our organization than they ever employed in their lives. , Dr. Kirchwey— Doesn't ttiat come properly in your sur- rebuttal ? Mr. Douglas — I Just wanted to call attention to the fact. Dr. Kirchwey — I understand he has a tenderness for the working of my mind. He wants to be sure that I get the point where it comes in. Mr. Oppenheimer — We have very limited time for our sur-rebuttal and it will have to be made orally, anyhow; while the other people had a great advantage over us in that respect, and you will pardon us for getting in a word now and then. Dr. Kirchwey — I do not object at all. I do not mind at all to have the discussions diversified a little bit. Mr. Brower:- — Edward S. Benedict, December 6, 1920: "Answering your question 'Why the additional equip- ment' beg to say that the Miller Feeder and press were ordered January 29, at which time, I was very busy and was doing considerable overtime work to keep up with the orders. When the press was delivered eight months later in September, I could have done without it, and might add that during the last three months have been slower than for a long time. "While I have not laid off any men there have been many days that there has not been work enough to keep them all going." Those references were of very small concerns, and It would be straining a point to say the prosperity of the . printing crafts could be shown by reference to those concerns. 9. Effects on production of 44-bour week. As one of its exhibits, the Union presented a state- ment taken from the heart of an article from the New York Times, with no Intimation as to the character of that article. The League ofters the unmutilated clipping from which the Union's excerpt was taken. The following quotation illustrates how misleading it is to separate the Ford , incident from the rest of the article: "An interesting and unexpected labor development hag taken place in the Ford plants. Instead of reducing their forces by 25 per cent, as did most of the Detroit auto- mobile plants Id the last two or three months, the Ford managers cut the working week to five days. Not only Sunday, but Saturday also, is a holiday for Ford employes. When the reduction was made production increased, the Ford engineers report. During the last month, run- ning but five days a week, the Ford plants turned out more finished products than they ever did in any month of six-day weeks. Two reasons are ascribed for the impetus to efficiency. One is that the workmen in the Ford plants can stand a faster pace for five days. The other is that the intrinsic value of a good pob in Detroit has grown and the workman is more eager to hold it." The Union's exhibit ended before the reasons for in- creased production were hazarded. The attention of the Arbitrator is called also to the de- pressing tone of the article in its entirety. References: Original league Brief, p. 20, and E'Xhibit C-2-d. Sur-Rebuttal, Exhibit 14. I do not think I shall go into that. There are a number of marked things. There is the article. The head of it is "Unemployment Effects," and so forth. 10. Andrews' speech to the United Typothetse of America. In the face of the growing depression in the printing business since the speech of Mr. R. P. Andrews in Sep- tember, bis words can carry but little weight. It is sig- nificant that this was a convention address to the country's paper purchasers by a paper merchant in wbich he tells the purchasers that their prosperity will continue. Any salesman docs the same thing. Mr. Rouse — "Nuff sed." Dr. Kirchwey — I see there is a response when you ap- peal to the ethics of the profession. Mr. Brower — 11. Few failures in printing. Again the League contends that printing prosperity or failure follows like conditions in the larger business world. It is a service industry, depending on general economic solidarity for its profits. The failure of print- ing plants would follow and not precede that oT other concerns. The increasing number of business fatalitiea is shown in exhibits as an indication both of what inay be ahead for the printing industry and of an unsettled economic situation. Reference: Sur-Rebuttal, Exhibit 15. Graphic Arts Board of Trade. This, by the way, is a rating board, similar to Dun's and Bradstrett's, specializing in the printing industry. This is addressed to me as President of the Association, dated December 7, 1920. I will read it entirely: "My dear Mr. Brower: "The writer, as President of this organization, feels it his duty to bring to your attention a summary of economic conditions as they exist today in the print- ing industry. "This hoard, as a representative in credit matters of over 90 per cent of the New York paper Jobbers and other lines selling the printers is compelled to keep its finger constantly upon the business pulse of the trade and to watch most carefully the general trend of events. We report the following acknowledged facts: "1. The printers have Just been through a period of the greatest prosperity ever known to the writer in his twenty years of experience. This condition has in the past been reflected in their prompt method of payments made to tiie trade; more printers having discounted their bills than ever before. "2. On October 1, or thereabouts, however, the general business depression, which months earlier had readied other lines, began to be felt by the printers. Many print- ing plants, however, were fortunate in finding themselves with enough contract work to keep at full production up to November 1st. From that date there has been a marked tendency towards lesser production due to the decided falling off in orders. Many pilnters have also, lately, found that their accounts receivable have not been paid as promptly as heretofore and also that the banks are much less lenient in the matter of making loans. This has brought about the following result: "3. A very large number of printers (and the figure Is constantly increasing) have, during the past 45 days, been unable to continue their methods of taking discounts upon purchases and have been forced, because of existing conditions, to take full time and even longer; the ten- dency being to revert to conditions of payment existing prior to 1914, when the keenest sort of competition forced many trade readjustments and settlements. The swing o£ For the month o( NoTember, 1920, there were 12 f«ii ures with liaMHties of ?624.849. against the Three failures in October with liabilities of $«,03T. manures Mr. Rouse — In New York? Mr. Brower— I do not know; wherever you quote from, the same authority. ^ t ^ n^^u, Mr. Rouse— We quoted It to show only Ave in New Mr. Douglas— We took the local failures . ^?- Ifo^se— We are talking about the economic condition in New York. Mr. Brower— 12. Baltimore clothing award The exception cited by the Union In the Baltimore award of an Inoease in wages to a particular group in the clothing industry In the face of the then impending economic depression is admitted. Attention is called to the fact that the Baltimore demands were the first sul>- mitted and the first adjudicated, and at the time when the signs of any economic depression were hardly evident It is to be noted that the Boston, Chicago and Rochester awards made at later dates granted no increases in wages expressly because of the economic conditions of the cloth- ing industry. References: Original League Brief, pages 24, 25 and 26 Eiihihlt D-1. 13. Judge O'Hara's award to Cincinnati compositors. "The parties do not agree as to the percentage of in- crease in the cost of living since 1914, nor as to the prospects, for increase or decrease In the present cost of living. Neither are they In accord as to the economic conditions affecting the printing business and cost and selling prices therein. But these matters are unsettled and uncertain, and all estimates are necessarily specu- lative." Judge Joseph W. O'Hara, Arbitrator in the wage idjustmcnt decision for Cincinnati Typographical Union N'o. 3 and the Cincinnati Printers' League No. 4. In contrast to Judge O'Hara's Indecision stand the clothing awards which are made entirely upon the Jeflnite recognition of existing economic conditions. References: Original League Brief, pages 24, 25 and 26, md Exhibit D-1. In connection with that, we submit Sur-Eebuttal Ex- libit 15-0, a newspaper clipping from the New York Times )f December 8, 1920. I do not- think It is necessary to •ead It. Dr. Kirchwey — It will be incorporated, will it.,not7 Mr. Brower — It Is Incorpoiiated. The substance of it s that a five-per cent increase was granted, retroactive irom the time of the taking up of the case to prac- ically the present time, and that from now .on there 'hall be no increase In wages because of the economic onditlon of the Industry. That Is with respect to the tacking employes. -Mr. Rouse — Whose decision is that? Mr. Brower — Judge Alschuler in Chicago. Mr. Rouse — No bearing in this case. In the Agreed Itatement of Facts it was agreed that this award should le for one year. That Is irrelevant and should not be onsidered. We are not meat packers. We are printers^ nd we are talking about the printing industry. Mr. Brower — V. Wage Comparisons. The Union has, with several exhibits, submitted that 58 er cent or more of their members receive premium wages hove the scale, irrespective of overtime; that the scale f $45.00 a week is below that of other industries; that t Is below that of the newspaper group of its own or- anization; that increases for printers throughout the coun fy justify nn Increase here. (a) Premium wages to printers. Before taking up the exhibits on wage comparisons the eague wishes to point out the fact that the $45.00 scale I a basic minimum scale. It is, and always -has been, le custom In a majority of the League member shops > pay what are called "premium wages," an increase ?er the basic scale for efficiency, reliability or long Jrvlce. The total wages, which include the premium ages, paid Typographical Union No. 6 members, are imittedly far in excess of $46.00 times the number of en working. , It is difficult to understand just why the Union raises le question of premium wages. The purpose probably is show that the Industry can pay more and does pay ore than the basic minimum scale, and from this would ive the arbitrator conclude that an increase in the basic inimum scale can now be paid. It must be realized at any increase on the basic minimum scale generally 2ans a stepping up of the premiums in the same ratio a not an absorption of the premium part of the payroll nay the increased basic scale. lb) Increases to printers in 137 cities. The Union submitted clippings from the Typographical 67 Union Journal showing wage Increases granted to print- ers in 137 cities In. the United States and Canada. Dis- regarding the twenty-two Increases applicable to news- paper shops only, an analysis of the Union's exhibit shows that but three scales were raised above the New York basic level. They are Heglna, Saskatchewan, Canada; Denver, Colorado, and San Francisco, California, none of them within 1,590 miles of New York, and all of them in the tar west where high wages are traditional. Only seventeen increases were granted to take effect after September, when the industrial depression gave evidence of being general and dangerous. A recent action In Toledo, where International organ- izers agreed with the employers that the increase was impossible at this time, and recommended to the AlUed P° ?SJ. *™' *•■* present agreements be extended to May 1, 1921," is significant. The Union questions the accuracy of the United T^- pothetse of America reports on wage scales. The check made by the Union discounts the dates of the reports, and submits wage scales on subsequent dates. A true basis of comparison would be to cover the same date periods. References: Original League Brief, Exhibit Sur-Ke- buttal. Exhibits 16. 16-A. Here is the schedule giving the analysis of all this, which I am not going into; just pointing out the fact that 94 out of 137 went into effect before August, 1920. There were just 26 of them in September and 17 in Oc- tober; and in all probability, the negotiations for those must have been had prior thereto. ■Mr. Bouse — Mr. Brower, let me ask you a question at this point, so that we can aid each other later. You do not dispute the Union figures as supported by the Ex- hibit 7 Mr. Brower — I have not said so, no. Mr. Rouse — Then our figures are correct. They are based on the scales as we know them, as of October 1st, and as of September 1st. Mr. Brower — We quoted them exactly as you said. Dr. Kirchwey — I understand that this Is not disputed. This is simply Intended as an analysis to show the bear- ing of the fact. , Mr. Brower— We submitted . the best facts we had from the latest details we had. Where later data Was available to you, you corrected it. At the present time we are not disputing, as far as we know, any of this, mere- ly explaining that a number of them are newspaper offices, which are not comparable to ours. Mr. Bouse — We have quoted only the book and job offices. I will challenge that statement, to produce any- thing we have put in any exhibit that does not cover the book And jbb offices. Mr. Douglas — It' may be just possible in this way, that the scale is a flat scale and covers both 'book and Job and newspa^per offices; covers both _ scales. Mr. Brower^— We checked it from your own exhibit. Mr. Rouse — We will check back with you, and prove our statement. There is not one quoted there, not to Iny knowledge. Dr. Kirchwey — In view of the fact that you are both relying on the same evidence, no question can exist that can not be adjusted by comparison. Mr. Oppenhelmer — There are a number of cities we quote where they pay what we call the "fiat scale." That means that the newspaper men, and the book and job men, get the same scale. Mr. Brower — (c) Comparison to other industries. T^e Union introduces a chart from page three of the National Industrial Conference Board, Research Report No. 31, In which Is shown the relatively small per- centage Increase in wages of printers ac compared with those In dther industries. In answer, the League calls attention to page four of the Research Report No. 31, in which it Is shown that though the percentage In- crease is smaller, the actual hourly earnings are the highest of all groups except in the rubber Industry, and in aver- age full time weekly earnings are the greatest with the exception of chemicals and rubber industries. When Income of the Union in particular is compared with the others, it Is found well above the average of any of the other groups. As to the actual position of Typographical Union No. 6, in the field of manufacturing in New York city, the League presents a chart showing the average levels of earnings In New York city factories for September of the years 1914 to 1920. It will be seen that Typographical Union No. 6 is at all times well above the general aver- age of that in all factories in the city and that the entire printing industry ranks well toward the top. The Union makes comparison with the wages paid in the building trades. The just comparison is one made with other manufacturing lines, not with the building trades which have recently been in a strategic position due to the heavy demand for building as a result, of the l^ng curtailment of construction during the war. Even in a comparison with the building trades, however, the high building trades wage level must be discounted be- cause of the great irregularity of employment. The print- ing trades enjoy special advantages in the way of regular- ity of employment, References; Sur-Rebuttal, Exhibits 17, 17a to C. I find tliat I did not read 16-a Exhibit. I referred to 16, but did not refer to 16-a. I will read it, from the Ameri- can Printer, November 5th, 1920. "The employing printers of Toledo, Ohio, have refused the unions an increase on the grounds that present indus- trial conditions did not warrant an advance. The Union claims they should get $10 additional for day work and $14 for night work. The unions sent for international or- ganizers to come to Toledo. Representatives from the em- ployers met these organizers and gave their reasons for re- fusing 'to increase wages. Tlie organizers agreed with the employers that the increase was impossible at this time and recommended to the allied unions that the present agreements be extended until May 1, 1921." I might say in connection with that, in view of the fact that it is a quotation from a paper, that we received from the Secretary of the Toledo Typothetae, a statement con- firming that. It has been put in in one of our other cases, substantiating that. We have not it here at the moment, I think. It may be in one of the others with you. Doctor. I do not know for the moment. Now, coming ' to the others, there is a letter from the Eschenbach Printing Company, dated November 24th, 1920. I read that yesterday. It refers to the scale for composi- tors, $30 tc $33. 1 do not think more than a reference is necessary. It is put in its proper turn. Here is the scale chart referred to, showing the various trades. This is compiled from the September, 1920, issue of Labor Market Bulletin of thft New York Industrial Commission with the compositors' wages added. The com- positors' line is that red line, and you see they are well above the average for all these others who cuis-cross one another from time to time as their scales move forward. All their earnings move forward, but the compositors are well above, and now more than ever before amply above all of t&ose others. The clothing group, you see, starts down there from 1919 to 1920. The clothing group has very materially dropped because of the lack of work, lack of employment in the industry. ■ j ' Mr. Rouse — What is that an exhibit on? Mr. Rrower — It is an exhibit compiled from the Septem- Tjer issue of the Labor Market Bulletin of the New York 'State Industrial Commission. It ia an exhibit that was put In here. Dr. Kirchwey — An exhibit of wage scales? Miu Brower — No; these are exhibits of earnings. Dr. Kirchwey — Actual earnings, of the persons in those Specific trades. Mr. Brower — The average of the trades. Dr. Kirchwey — Then in case there is a particular trade which is afCeeted by the present alleged slump, like the clothing trade, which is notoriously affected and a lot of these people are out of employment, the fact that some are out of employment is shown? Mr. Brower — The average works out. Dr. Kirchwey — It is the average earnings. ^1 am glad you have that cleared up. Mr. Brower — Exhibit 17-a is based upon the Special Bul- letin No. 85 of the New York State Industrial Commission, p&ges 27, 28 and 33. Tliere is plotted here the average percentage of unemployment in the printing, clothing and building industries for the years 1914, '15 and '16, show- ing printing as a whole being 8% per cent,; building trades, 36 per cent., and clothing 32 per cent. Dr. Kirchwey — Those two being seasonal industries, building and clothing? Mr. Brower — Yes. Mr. Oppenheimer — We ourselves are trying to prove that. Mr. Brower — Exhibit 17-b, I believe, was also put in by the Union, National Industrial Conference Board Exhibit, changes since the war. Page 4 is where we quote from. They quote from page 3, and we simply turn over and quote from page 4. We ^ave marked there "Printing and publishing" with a check, showing the average hourly earnings as 66.2 cents for the printer, and the only higher one 'than that is in the rubber industry where it is 83.9 cents. With respect to the average full time weekly earnings, the printers are credited with $31.57, printing and publishing, and the next highest — there are but two higher— Chemicals, $35.72, and Rubber, $3*8.60. Then, here is a plotted scale of different trades, build- ing trades, boot and shoe manufacturers, textile manufac- turing, transportation, iron and steel, and the printing and allied industries, reproduced from the 49th Annual Report on Statistics pf Labor for 1918, by the Massachusetts Bu- reau of Statistics, showing the irregularity of the various Industries, printing being surpassed by only one, that of transportation, in regularity of employment. The first is transportation; the second is printing, and third, apparently, is iron and steel, and the others are fourth, fifth and sixth. You can see bow that fluctuates there. Mr. Rouse — It only proves our contention, Doctor, as to the stability of the printing industry. That is what we are contending. Mr. Brower — Then try to compare it with an unstable Industry as to wages. The New York State Industrial Commission has another plotted chart showing the course of employment in New York State. Bureau of Statistics and Information. Per- centage of idleness in Trade Unions in New York State. Clothing Trades. You can see how that fluctuates in the various years, 1904 to 1916.. Dr. Kirchwey — Yes, I know something about that trade. Mr. Brower — Then here is the same for the printing trades. Dr. Kirchwey — Not as picturesque a line, but more satis- factory. Mr. Brower — Satisfactory for the members of the trade. Mr. Rouse — And the employers. Dr. Kirchwey — And thje employers. Mr. Brower — (d) Book and Job against newspaper scales. The Union, instead of presenting reasons for raising the book and Job scale to the newspaper level, quotes the ar- gument of the Publishers' Association for bringing the newspaper scale down to the level of the book and job members. As a matter of fact, the newspaper scale is higher because the requirements of the work are more ex- acting. Printers in newspaper shops are constantly racing against time, for today's copy is worthless tomorrow. There is nothing new in this differential, and the Union has fully given the reasons for such differential. I referred to it yesterday more ex:tensively in our r*!eu- lar rebuttal. References: Original League Brief, A-9. VI. Offer of $4.00 increase in conciliation. The Union refers again to the $4.00 offer made in the conciliation proceedings. The League calls attention to page 8 of its rebuttal to the Union's original brief. Here the League explains in detail the basis of the offer and the circumstances under which it was made. The League further contends that no increase is .iustified under present conditions, and that the offer of $4.00 was made prior to the time the facts of the present economic situation became known. Since the time of that offer the situation has gradually grown worse rather than better. References: Original League Brief A-7. VII. Union exhibits to which no sur-jebuttal is made. In this sur-rebuttal the League has not attempted to answer Exhibit Number 5 — letter saying unemployment among garment workers is greater than among other groups — except by its argument under "Unemployment" and "Economic Conditions in General." Nos. 7, 9, 12, 14, 23, 35, we leave unanswered, as far as we are concerned. There is an exhibit under the head of "The Index," published by the Liberty National Bank of New York. I ^ am not going to read it. It refers to economic conditions. The particular interest In it here is the chart that they have plotted here showing the similarity in effect of prices between the present tendency and the tendency immediate- ly following the Civil War, showing the curve of pricea and its change from time to time through the years, and how it is almost the picture at the present time of the abrupt drop that occurred in 1865, shortly after the con- clusion of our Civil War. It is submitted as showing the tendency and the prophecy and probability as to the eco- nomic trend at, the present time. VIII. Sum-up of the League's case. The League believes it has shown conclusively that on the basis of the factors laid down in the contract effective January 1, 1920, no wage increases are justi^ed at this time, because: (a) The cost of living level is now below that of Jan- uary 1, 1920, with further declines in sight. (b) The economic conditions of the industry, feeling the effects of a widespread business depression, warn against the assumption at this time of any additional financial burden. In conclusion: The extent of the continuance of the economic depression now existing can not be wholly deter- mined. The Harvard Economic Research Committee point out Exhibit C-l-i of the original League Brief, that from past records of cycles of business depression, the present situation will show a change for the better sometime be- tween April and July of 1921. The League definitely asks that no wage intirease to Typographical Union No. 6 be made at this time and proposes a supplemental agreement to the existing contract providing for a re-opening of the wage scale only on April 1, 1921. the date the contraets with most of printing trade unions will again be subject to readjustment. Dr. Kirchwey — On the nssumption that the present down- ward tendency claimed by you will have been checked by that time. Mr. Browfer — May be checked by that time, and If so, it is to their advantage that it should be opened. Then the.y may have the opportunity of opening it, in keeping witli the opportunity afforded other Unions at the preseat time with whom we are also on arbitration. Dr. Kirchwey — That is the conclusion of your remarks? Mr. Brower — Just one thing more, and that is to this effect, that consistent with your own feelings in the mat- ter, after considering it, as to the wisdom of It, we would ask that the announcement of the award in this case be made at a uniform date with all other announcements, in order that no one announcement may in any way affect any other. With that, we rest. Dr. Kirchwe-v — I want to get that clearly in mind. K is a fact that I am today, this afternoon, Just beginning my hearings in the case of the Job Pressmen. Mr. Brower — Yes. Dr. Kirchwey — I presume that as the case of the em- ployers will be substantially identical, that the ease will not begin to last as long as this has. Mr. Brower — No. Dr. Kirchwey — I presume also that the case of the Union will be substantially identical, because they deal with the" two same elements, changes in the cost of living and the state of the industry. I was just going to raise the ques- tion as to whether your suggestion would involve an un- comfortable or undesirable delay in the determination of this, which is the first of the cases submitted. Mr. Rouse — It surely would, Doctor. Dr. Kirchwey — I will be glad to hear you later on that, Mr. Bouse. Mr. Brower — I would say that we have finished with No. 51 before Prof. Ogburn. We made the same request of him, and the Pressmen of No. 51 readily consented to that as being a fair and desirable situation, under the circumstances. In our recent cases we have concluded our prima facie hearings in a very short while. They have been very short. t\'e had just exchanged briefs before the Arbitra- tor, and talked almost informally, and rather briefly, and then gone away to come back later on, as has been ar- ranged in other cases, for our rebuttal, merely leaving it to the reading of the briefs. The exhibits will be practically the same, antl in so far as we are concerned, we are more than anxious to con- clude matters as speedily as possible. We are unfortunately detained three days out of next week by the necessity of attending a General Conference Council, of which the International member of this or- ganization is a member, at Atlanta, on Monday and Tues- day of next week. Our arrangements are tentatively that we shall conclude, that is, finish with the arbitrations, all presentations and rebuttals, on a week from Monday. Dr. Kirchwey — That would give the Arbitrators a cheer- ful holiday season in which they will survey the evidence and reach a conclusion. We will now hear from Mr. Bpuse. What do you have to say with respect to that suggestion, Mr. House? Mr. Rouse — Dr. Kirchwey, we have pointed out very clearly, in all our statements before you, that the posi- tion the Typographical Union has taken in this matter has been one for adjudication as speedily as possible. We have approximately 6,500 men anxiously waiting for this decision. Our first communication is contained in the documents presented to you and dates as of August 17. Our first conference with the employers was August 26th. We received no communication from the employers for a further conference until the 23rd of September. Now, this Union, which is the largest Union, and which is the one that has the most at stake in this controversy, so to speak, is intensely unsettled, and the business is imsettled because of this long delay. Of course, we appreciate the position that it places us in as representing our organization, when such a- state- ment is made bv the employers. The Arbitrator, naturally, has the last word in a question of this kind, but we ap- peal to your sense of fairness, to your sense of Justice, fpr these men that are in the trenches in the printing in- dustry in this city awaiting this verdict. Here we have one case that has not yet been before you We must look at this thing as men, and must look at the unrest. That is an unrest, not of our making, but rather of delay, and the delay has not been the fault of the organization. We must present our facts clear and clean to you as best we can, but insist upon as early an award in our case as is possible, with your own business that you have to attend to. „ , -, i. Dr Kirchwev— If I may be perfectly frank, I must say that' I can not help feeling that I can not really decide one of these cases without, in effect, deciding them a.11; that it is practically a question of writing out the decision and. opinions in the several cases, except in so *ar as the evidence in one of the two other cases submitted to me may produce facts which have a bearing only UP<"> ™f claims of those who present them, and do not have a bear- ing upon you. . ,. „ • j, „- The two important factors, the changes in the cost of living, and the state of the industry, are absolutely iden- tical In all of the cases, of course. The only questions which you have raised which can be aiJ^^nV^fii/ntr that would differentiate your case from that <>« otl'^J, P^'" sons engaged in the printing industry and whose claims Tre now bdng arbitrated-is that the compositor occupies or should occupy n favored posit on because .°f. *^,f P"'" enersv and intelligence wh ch has to go into his work. YouVke of that^ you perhaps '>»=•. in mind yo.ir asso- ciates of the other branches of the printing industry, too, or von may have had only in mind the compositor. But I do not see how I can. merely as a matter of men fll operation, reach a definite ^^'TlT t°he same time which are involved in your case, n'*"""* "* *„^^™iL *t°l implicitly reaching a conclusion upon t'"'«/^=""'^„/''St which are involved in the other cases. Am I not ngnt rboui that? Thlt I might have to strain myself in order to make one decision before I make the other, unless in- deed hearings should drag on beyond the time when I could reach a decision in your case, which would virtually be a decision in advance in the cases which I have not yet completely heard. That is quite possible. Mr. Rouse — There are elements bearing on our case. Doc- tor, that do not bear directly on the cases of the other organizations. Tor instance, our work is in the composing room, dis- tinctly, the setting of type, putting it up in all of Its various phases, reading it, making it up into pages, and sending it into the press room. Now, then, we do a great deal of composition in this city that is not printed in the press rooms of this .city. For instance, we can cite the Pictorial Review, Their quarterly fashion sheets,' the composition is set up in the Pictorial Review composing room. Plates are made, an4 the plates are shipped to Chicago. Dr. Kifchwey — That would affect the number of persons employed in press work for exaraaple here. But, does it raise any question as to a superior or an inferior right that you may have to the increase in wages you have de- manded, as compared with pressmen or others, whose cases are now pending? The point I am making is this: Let me assume that these remaining cases will be submitted to me as they may surely be, I think, lumpfold, going through the mass of material that has been submitted on both sides, all the while I am making a study of that material, and by the time the last case has been finally concluded, the last of the three that I have not had, I shall have made up my mind upon the essential facts which are common to all of these cases. In that case, there would be no motive in my announcing one decision in advance of the others, would there? Just because your case was started first? Really, I am trying to clear my mind on the subject. I am not arguing for a position. I am trylnsLto see how I can, if the thing goes on in the orderly way, which I hope, how I can have any excuse for announcing one in advance of the other. Jlr. Kouse — We have made our position as clear as we can. , ^ , , Dr. Kirchwev — The truth is, if I may interrupt you for one moment, vou have done the work for all the other cases as well as in your own, by putting before us— I mean the two parties that are now before me— have prac- tically supplied me with all the information that I need to decide all of the cases that are pending. Isn't that so? Mr Brower— To a big degree. But I will Just point out, while Mr. Rouse is pointing out the fact that he is through first, and there is one that has not yet starteil, you will remember that there was an appointment made several days ago for that other one to start before you; but that out of deference to us partially, and in order that we might prepare for this mass of stuff that we have prepared, that one was set back, in order that we might be prepared for the date, yestSrday the day so nrgent y pressed upon us to be ready for; and the other one would have gone ahead if it had not been for the giving of ''"l"'pre'parTng''for this we have ' actually prepared for those with respect to the same economic data. You were suggesting that this economic data has now been brought suggesting t ^ „ ti„„ „( mechanical repetition ami duplication. As a matter of fact, I have said before with respect to these special exhibits here, by way rf cancellation orders, that we should like you to use them as vou feel you need to, that we may use them exactly a! they a" fn the other arbitrations, because we have no duplicates and do not care to photostat all of those, duplicates ana ^^^^^ ^^^^ ^^ ^^.^^ ^^^ ^ fl"««"°° which has an immediate bearing upon the procedure that hna iiPPn suceested by Mr. Brower. . ,, , . I think ifught to be at liberty to use, in the deter- mination of this case, any further evidence bearing on the issues of this case that may be presented to me in either of the two other cases. s,,v,atan- For example, suppose your side, I take it, is suDstan tiallv complete so you say. Suppose I should get, owing to the researches of Mr. Clark, or a person who may be representing any one of these other Unions, additional in- ?o?matTon°feari^g upon the 1»f "on of the cos of livmg or upon the question of the state of tbe industry. You would not expect me, even if if were =» .'nt«"«<=*"f *X of which I were capable, to shut my mind to the addi- ?fonIl evidence that is presented to me whi^ch has an immediate and direct bearing on your case won d you? Mr Bouse— You would not be human if yon did. Dr Kl^hwey-I can not do that. I have got, so far as tiie issMS are identical-I am practically compelled ?o utmze all of the materials that I may get in these three cases and it might be a distinct advantage to me, and therefore ?o the cause of Justice,- in so far as lustice bf said to be involved in my present function, if I may ieTin'and consider all of the evidence that is , coming - three car"" in any on" of them. to me in my three cases before I render a final decision Mr Brower— That is our idea, too. Mr' O'Ctonell-Dr. Kirchwey, do I understand that vnii are arbitrating three different cases? Dr. Kircl™- ''^"-" "'■'— '•"<""' ''^^'•'cs yours. One -Two other cases besides yours. of them is Bubstantially completed, so far as the presen- tation of the case is concerned on both sides; rebuttal stiU to come. The other is to open this afternoon, and I am expecting that neither of them will take very many minutes, because I do not want to hear everything all over again that I have heard here, and have exactly those same exhibits read to me again and argued upon. Mr. O'Connell — I>r. Kirchwey, If the Union's Committee bad had its way, you would not have had these other cases to bear. We saw this coming, and I, myself, when we decided on ~your name — it was not so easy to decide upon an art>itrator by any means — I asked the question of the Union's Committee, was this arbitrator going to take any other case in the printing industry; claiming that it would be unfair to our members and unfair to the mem- bers of any other Union that it should be taken, and it was the concensua of opinion there that you cnuld not Dr. Kirchwey — ^Well, I am informed that I was ap- pointed to the second one and to the third one with the consent of your committee, and not otherwise. Mr. O'Connell — ^Not through any consent of our com- mittee. We did not consent to your arbitrating any other case. Dr. Kirchwey — It could not have been done otherwise, because I was informed that I could not take any other arbitration. I am not looking for jdbs of this kind. Mr. Brower — Mr. Rouse, you better inform Mr. O'Con- nell. Dr. ICircbwey — Ytm will understand that I did not seek any one of these arbitrations. Mr. Rouse — You are correct, Doctor, but Mr. O'Connell is correct, too. Mr. O'Connell — I myself mentioned your name before the Joint Committee, and I have not any cause to regret it yet; tout I did not think you ought to be burdened with these other cases. I think We are getting the worst end of it. "" Dr. Kirchwey — I fail to see how it gives you the worst of it. But whether it does or not, I want to have the record quite clear as to the legitimacy of my selection as arbitrator in the case of Union No. 23 and that of the Job Press- men. I think you can answer with regard to that, Mr. Rouse, can't you? Mr. Rouse — Mr. O'Connell is correct. There was an un- derstanding with the Employers Committee that the case of Typographical Union No. 6 would go to Dr. Kirchwey and the agreement was made that they would not agree to allow you to act in that capacity with any other Union. Now, then, when the question of Franklin Union came up, your name was mentioned, and of course there is a feeling of aflaiiation and friendliness toward the Franklin Union, and I put it up to my colleagues, and they assented to that procedure. In the case of the other organization, the Job Press- men, Mr. Brower wrote me a letter. I took the matter up with him and I explained to bim that the letter he had sent to me had placed our committee in a very un- fair position, and dissented from it, and that It put us iu a false position before you. Dr. Kirchwey — You did not realize that I regarded It as a favor not to be put on a third job like this. Mr. Rouse — I took It up with Mr.' O'Connell and it was a move or a movement of maneuvre that wp had nothing whatsoever to do with, and was distinctly in con- tradiction to the attitude of the Employers' Committee in their conference with us. We refused to be placed in a false position before you and for that reason we had no other alternative. Dr. Kirchwey — You were unduly sensitive, Mr. Rouse. You would not have been put in a false position with respect to me, because I understand the thing. Mr. Rouse — We would not allow ourselves to be placed in that position, and that Is why. since they agreed and the other organizations agreed and the insistence was there, and I was informed by Mr. Brower that Mr. Hogan had called upon you personally of his own volition and askfed you to serve. Now, then, when this had already transpired, before we were consulted, you can readily see. Doctor, as a fair man, that if we had then taken that position, you would have thought it rather a strange position for us to assume. Dr. Kirchwey — No, because I had pot accepted the appointment. I had stated that I had everything on my hands of that sort that I could carry, but if it seemed de- sirable in the trade that I should do it, I would be willing to do it, but that I had agreed to take it only if every- body was agreeable to my doing so, including yourselves. Mr. Rouse — But it was distinctly understood when you were selected, that you were to arbitrate our case and no other Cflse. Dr. Kirchwey — Let me say that I can not recognize, I can not allow my position as Arbitrator In the other cases to be Impeached by any assertion of a prior arrange- ment which was distinctly waived by you. I should have felt myself toound by that arrangement, If It had not been waived by you. Mr. Rouse — Correct. Dr. Kirchwey — I understand that It was waived, and that it seemed desirable on all hands, that I should act, either because these other organizations were somehow or other affiliated with yours, or whatever the reason may have been that I should act in these other two cases. I have taken them up merely under a strong sense of duty in order that I might discharge my responsibility to the community, that you Invited me to assume. Mr. O'Connell — ^Dr. Kirchwey, aside from that, you said Just a minute ago that the arbitrators would have the holidays to decide on the evidence, and fix up an award. Now, our people are anxiously waiting for this award before the holidays. They were even shouting for it for Thanksgiving, and I honestly believe that this ease, at least, should be decided, before Christmas or the holidays. I know that it can be. Dr. Kirchwey — I wonder if you realize — I shall not be as busy during the next two or three weeks as I sometimes am, but I am not free from obligations. I have to spend three days within a day or two now, in Wilmington, Baltimore and Washington. I have duties to perform. Mr. O'Connell— Doctor, you can convince us, but we can- not convince nine thousanad members. Dr. Kirchwey — I wonder if you realize what a mass of material you people on both sides have dumped on me, every page of which I have got to examine if I am to per- form my function as an impartial arbitrator. Intelligently. Of course, you have got you mind definitely made up, anfl it seems perfectly easy to you what my decision should he. I strongly suspect that the gentlemen on this side (indicating the Eroployers) have a similar feeling with regard to the matter. Now, I have got to decide between those two rather extreme and conflicting views, and I can not do It without making a careful, conscientious examination of an enor- mous mass of material. Mr. O'Connell — I would rather you be in our position of convincing our membership along our lines, than President Rouse and his Committee. Mr. Douglas — Doctor, I would just like to call your attention to one reason why this award should be handed down without the others. You, perhaps, are not aware that at the present time we have in New York city, 600 employers that engage members of No. 6. Out of this 600, these gentlemen represent only 210 of them. There are 390 employers that are not members of this Asso- ciation, and a lot of those men w^uld willingly give us the money that we ask, only that all scales must be on a level in New York city, and it is for this reason we treat with this body. That is the position we are in. Mr. Rouse — These are independent organizations. Mr. Douglas — They do not belong to these people, have nothing to do with them. They are only 210 in this city, and 390 on the other side. Dr. Kirchwey — You have made a good argument for rendering my decisions Just as quickly as I can. THiat is all thPTfl ia to that. It dnes not mean thnt I can not reach a conclusion simultaneously in the three cases that I have got, if I have a three-act mind. Mr. Douglns — I state this Just to show you when this de- cision should come down. These 390 other employers are raising old hades with us because they are taking in work. and work is going out, and, making it retroactive, the result is, they say, "Where are we going to get this money, if there is any money coming to you?" Dr. Kirchwey — I get your position, and I Appreciate the importance of making a decision Just as soon as I can render it. Mr. Rouse — Dr. Kirchwey, to clarify the atmosphere, we state our position. The case Is before you. We have a rebuttal yet to make, and will be as brief as possible in making that rebuttal. Now, then, we are surrounded 3>y these facts, as Mr. O'Connell has very carefully pointed out to you, so far as our membership is concerned, working in establish- ments not connected with this organization. Dr. Kirchwey — Does this decision affect tbero? Mr. Rouse — We can maintain only one scale. Whatever Is thA decision here must apply to them. Dr. Kirchwey — And if an Increase is granted, will It be retroactive in all of these cases as well as in the Asso- ciation shops? Mr. Rouse — In those cases it will, or our men can not work there. From time immemorial, this Union never made flesh of one and flsh of another. It is uniform In every respect. It gives no better conditions to one em- ployer than it does to another. Our scale is established on this basis, and it applies to all. Now, then, I want to correct you, particularly correct you on the point of the Franklin Union. The Union's Committee was unanimous In their waiver for Franklin Union, that you serve, because we hold Franklin Union In the highest esteem and regard. The Union was unanimous, and Mr. Brower will bear that out. We said we would waive that. Over the phone he told me "Absolutely no other Union will we agree to have their case comfe before you except Franklin Union No. 3 and Typographical No. 6." Now, then, Mr. Btower will bear me out. Along came this circumstance, and bear this ^ in mind. Dr. Kirchwey. when I am explaining 'this to you I do It with a great deal of reluctance. I would much rather the question had not been raised, but I must do it in justice to my col- leagues and myself. I want you to clearly bear this in 70 1;<.H ■ ??" ''°* ''"'■' *"y one °* these organizations ?,^f „®f th!l'n^'' "^^^I'-SS. <>■■ say one thing disrespTt- (nl of them or m any way, shape or form try to retard them from getting the very best that they csl get But ta the last ease, it placed us in an embarrassing position; in a position that we could not afford, to let it appear ti you that we were arbitrary, that we were selfish, and that we were trying to circumscribe you in your efforts as you haye correctly stated, to be of assistance in a conl troversy of this character. Mr. Bvower will bear mot nut iu what I say, that tliat was^my e.\planation to him over the phone. Isn't that Mr. Brower — Yes. Mr. Bouse— This was the third case that came to you because of the peculiar way in which it was brought about. Mr. O'Connell correctly states that it was dis- tinctly understood that the two cases that should come be- fore you were Franklin Union and No. 6. Now, I think we have made our position clear to you, haven't we' Dr. Klrchwey — Entirely. Mr. Brower— I would like to say a word. Mr. Rouse is correct in the main, but partially incorrect in some minor details. In the inception, when we discussed your name they asked us If we would bind ourselves to agree to al- low no other arbitrations to come before you, and whether or not to take up more of your time, and not to delay the decision. We said that in so far as we were con- cerned, we would not propose you "g?^ - r ^-.r^^ York is gr( year the pn the printing ;nuu»^, .^.^^"^.^^ ^^^.-^ fTr them tV do the -rf tif^f tirK^Xr ^U ZT!t Cf Thev 'refer' to the Merchants' Survey on the question xney reiei ■•" . ^ ^ _, {.^ tj^ moment, I would of the cost of, living, and just i"' " .^^ ^^a like to have Mr. Tr'achtenberg take up that point bring in his figures and deductions on the cost of living, if he will. -Mr. Alexander Traehtenberg — I will now take up the various points on the subject of the cost of living. Be- fore I take up this Merchants' Association Exhibit pre- sented by the other side, I would like to establish this fact, that by agreement entered into between myself representing some of the Unions of the printing industry,, and 'Mr. Silcox, representing the other side, it was agreed that retail and not wholesale prices should be used as a basis for wage adjustment; so that I think it would be proper to urge the Arbitrator to rule out testimony deal- ing with increases or decreases in wholesale prices as- irrelevant, and because of the agreement between the- Employers' representative and myself, that wholesale- prices are not an index of the cost of living. They should not be considered as such, and therefore all references to* the various agencies which they quote, indicating a de- crease in the cost of living, those wholesale agencies are wholesale prices, agencies like Bradstreet's, Dun's and other agencies. The only one agency that collects data on prices .is the United States Bureau of Labor Statistics. The brief of our adversaries particularly criticizes a statement which we use of Dr. Meaker, it is true, com- ing out in January, 1920, in which he stated that according to his opinion — and he has been studying the cost of liv- ing for so many years — the cost of living is not going to go down, but as a matter of fact, prices will be going up for the next few years, for the years to come. Tliey deny that. We submitted in ,evidence, then, a statement by his successor, no less authority on the sub- ject, because otherwise he would not have been chosen as the successor, Ethelbert Stewart, now the U. S. Com- missioner of Labor Statistics, and in that statement I would just like to read the concluding remarks made by Mr. Stewart on this very subject. Since the statement of Dr. Meeker in January is conceded to be out of date, let us see what Mr. Stewart says on November 22, 1920> just about a couple of weeks ago: "The decline in prices so far has been comparatively small, has affected for the most part, articles that do not enter largely in the workman's total cost, and may be more than offset by the unheralded increase in some other articles of food, which proportionately affect him a great deal more. Certainly, we are all glad to see a drop in prices in any important article of food, and all agree that every little helps; at the same time, a great deal of caution should be observed in the attempts to project small, reductions on a few, or a single item into the living costs, as well as economic conditions of the workman's family; and those who sit in judgment upon wage scales are ad- vised to heed this very proposition telling about the in- creased cost of living are really camouflaged, because, as a matter of .fact, it does not project into the entire cost of the family, but rather affects a few incidental items." I think that should be takeh as an authority, because the U. S. Bureau of Labor Statistics in this connection has reference to retail prices and not wholesale prices. In retail prices, the point of view of those items enter into the daily life of the workman's family. The Employers also claim that at the time they of- fered $4.00 to this Union, they did not know of the re- cession that had set in in the price movement. Now, I approached Mr. Stewart on the subject. We have further data to substantiate that. We refer to the Report of the Massachusetts Commission on the Neces- saries of Life, an organization which has also collected data on retail prices, and they claim that between the months of August . and September, instead of a decrease, an increase has been shown, and furthermore, tells the following: "These figures," they say, "are a disappointment to everyone who has observed the immense amount of selling propaganda relating to special lots, of manufactured articles, especially clothing and shoes. The, marked down sales of merchandise have generally included things out of style, odd sizes, and odd lots, and out of season products. There has been almost no variation in regular standard lines, of either clothing op shoes." And they are substantiated in this statement that it there are any decreases they are in materials that were left over, and therefore no longer cost more, by the state- ment issued by Mr. Crane, Secretary of the National Clothing Association, and he ought to know. He said "It is also certain that where an appearance of radically slaughtered prices is evidenced, it will be of goods that either because of style or fabric, have lost the. major part of their intrinsic value, and must be sacrificed! fop immediate consumption." Now, we have two authorities Dr. Kirchwey — What organization does that emanate from? Mr. Traehtenberg — This emanates from Mr. Irving Cpane, Secretary of the National Association of Clothiers. ' Dr. Kirchwey — And the preceding one ? Mr. Traehtenberg — The Massachusetts Commission on Necessaries of Life, a State organization. These are authoritative information on this subject. It shows that as far as the needs of the wage earner's family are con- cerned, prices have not decreased, but as a matter or fact, are either standing still or are increasing. 73 We are tald by the Employers that clothing has been reduced 40 per ceut. An organization known afi the In- dustrial Conference Board, which is maintained mostly, by the way, of great employers' combinations and organiza- tions like the Chamber of Commerce and other similar organizations, and in which the National Organization of this body is also a member — the United Typothetae — that organization in a statement Just issued, states that cloth- ing had decreased according to their data, only 13 per cent. Dr. Kirchwey — Does it indicate whether that has refer- ence to wholesale prices? IMr. Trachtenberg — ^That has reference to retail prices. They have made up a budget since then, showing that since July, 1920, up to the present time, there has been a decrease In^ clothing of only 13% per cent. Dr. Kirchwey — Up to what date is that? Mr. Trachtenberg — ^Up to November. iDr. Kirchwey — Including November ? Mr. Trachtenberg — Let me see, to November 1st. It decreased 13% per cent. Now, I should think that they certainly should take the information from an organization which they support, rather than from the newspapers; showing 13 per cent rather than 40 per cent. Now, then, they introduce the Merchants* Association estimate of the decrease in the cost of living In New York City. We do not know how they collect their data, through which they arrive at the figure of 10 per cent decrease in the cost of living since June, 1920, from June to November. Dr. Kirchwey — ^That Is the total cost of living? Mr. Trachtenberg — The total cost of living. The or- ganization that I have referred to Just previously, the NationfCl Industrial Conference Board, of which the United n^pothetee is a member, claims there has been a decrease of only 5 per cent through the same period. There Is 100 per cent difference between the two state- ments. Which Is correct? Both of them are employers organizations not friendly to labor. Now, I figure this five per cent is quite an extreme figure; but certainly, I would rather take their own or- ganization than the Merchants' organization, because at least this body is known to be collecting the data throughout the country, and making some studies, at any rate, of the subject, while the Merchants' Association have entered newly into the field, and I do not know how they have collected this data. Now, then, we come back to the United States Depart- ment of Labor as being the- really only authoritative source. Also, by the way, it was agreed between Mr. Silcox and myself, representing both sides, that that In- stitution should be considered as the only impartial and authoritative institution; but Mr. Silcox; will remember the agreement we reached was that we consider the United States Bureau of Labor Statistics publications as the only authoritative, the only published data, because when I agreed with Mr. Silcox on that subject, I had In mind that the Union was making a study of this very subject; and I had agreed to sign a statement with Mr. Silcox, provided that the U. S. Bureau be considered only as the one that publishes data; so among the published data, their data Is preferable, but there may be other data sub- mitted which may further prove that their data is rather conservative, and the Union therefore agreed to try to submit data supplemen|ary to the data of the U. S. Labor Statistics. Mr. Silcox will remember that agreement. Now, as to our data being biased. As a matter of fact, Mr. Arbitrator, In the presentation of our total increase In the cost of living, as compared to 1914 as a base, we ■ naturally ourselves, collected data for rent and food. All the rest was taken from the U. S, Bureau of Labor Statistics, for the reason that we considered that as far as rents and food are concerned, they affect people in the various localities where they reach; that is, the workers living say in the Bronx or Brooklyn or New York, in the various parts of New York City, will be affected differently with regard to rent and food. iPirst, with regard to rent, our people do not live in houses where, you might say, they are owned by the same people for years and years; and the United States Bureau of Labor Statistics collected data, according to a letter submitted by the other side, states exactly that they col- lected data from real estate agents of houses who are in their charge for many years. Now, the houses where workers live usually change three or four times a year, and the rent changes accord- ingly, because every time a new owner takes possession of the property he changes the reit; and as a matter of fact, frequently houses change in order to increase the rent, because the same owner can not Increase it several times a 'year; so that we are affected differently, and we have shown, then, that the average Increase in the rents in the districts where our people live, was 82 per ceut. Now, they claim that it Is out of proportion, what the Government says. The Government's figures are 34 per cent since 1904. Anybody who is paying rent in New York City, certainly is paying more than 34 per cent, more than one-third increase, than what they were paying in 1914. There seems to be something the matter with that data, and as Mr. Eouse Ju.st stated, our figure was substantiated by a figure made by the Association for the Improvement of the Condition of the Poor, in Novem- ber, 1920, not October but February, 1920, and in October the rents were revised, and then It was shown that the Increase in the cost of rent Jumped 70 per cent— 69% per cent during this period. So we are substantiated by another body who has made a similar study in working class districts, not taking New York City as a whole, as the Government does — that is, concerning rent. Now as to food, we also maintain that the prices of food do differ In the various districts of New York. The Government takes the entire city as a whole. We take the districts where our people live, and the corner grocery stores where our people buy; and I would call further attention to the fact that even these prices are, we think, far below what actually is being paid by the house- wife of the workingman, because of not having enough storage space. Our people do not buy large quantities, and if a pound of something is 25 cents, and you bay a quarter of it, the pound comes out at 25 cents, because it is 13 cents a half pound, and that should also be con- sidered; but we take pound prices, just as the Govern- ment does, and we find In these corner grocery stores, where our people deal, that the prices there are not the same as perhaps in the large markets, if you would take the city as a whole; so If there is a difEerence between our figure and the Government's figure, it is explained by this situation, and we have to take that into con- sideration, and we have made a study where our people live, because after all, we are affected by what we actually spend, rather than what the Government figure shows for the entire city. The other figures were taken entirely from the Bureau of Labor Statistics figures for 1920, which is the latest data on the cost of living, as you know. The Government collects only once every six months, data for the cost of living as a whole. Pood prices every month are collected, so if you want to have the Iijdex for the entire cost of living, we must take the figures of the Government for June, 1920 — those are the only ones so far available, and the only authori- tative ones we can go by. I might say that in the agreement entered into between myself and Mr. Silcox on this very subject I have two specific reservations on it, so we were perfectly in place to introduce figures on rent and food, because it is stated here — (3) That the Department of Labor figures are for rent very conservative if not low. That is signed by Mr. Silcox. (4) That food figures are compiled by the United States Bureau of Labor Statistics for New York as a whole, and not by districts which would probably show some variation if so compiled. That is signed by Mr. Sllcos . representing the other side. Therefore, we were perfectly in order, and It was proper for us to compile statistics on rent and food separately, and then see the other figures of the Government, because they usually affect all people alike, clothing and other matters. People go to the centre of the city to buy those things, and therefore they affect everybody alike, but there is a difCerence in food and rent which is apparent. In addition, by the way, I would like to submit, Dr. Kirchwey, that the Government data for rent was col- lected, as I understand, by the letter to Mr. Silcox, from 583 cases. Now, we collected data from 664 cases. We are not very far apart as to the amount as to the number of cases investigated; but the difference between 34 per cent., what they say, and 82 per cent., as we show, Is explained, as I did explain, and I say we are substan- tiated by the other figures. Now, then, we are told by the other side that the budget which we submitted to you was not an existence budget. They do not like these words "existence budget," and they want It to be considered an American standard budget. Now, we advised them to put in that, because we know that the budget which we compiled was based upon the method used by the United States Bureau of Labor Statis- tics; and I should like to call your attention to the method that the Bureau of Labor Statistics uses In com- piling their budget, and what they have to say about that budget. The budget which we compiled was called the "Minimum Decency and Comfort Level." The Government has the following to say about this budget: "It needs to be emphasized that the budget level adopted in the present study is in no way Intended as an ideal budget. It was intended to establish a bottom level of health and decency below which a family cannot go with- out danger of physical and moral deterioration. This bud- get does not include many comforts which should be in- cluded in a proper American standard of living." Now, we take this budget of the Government compiled in August. 1919, for a Washington employe, which was then $2,262. We show there was an increase in the cost of living since that time of 22 per cent. We brought that figure up to $2,700; then the budget, and, according to the Government study, allowing ten per cent, at least for sav- ings, we brought our budget up to $3,000. We show that the earnings of the workers, the annual earnings of the workers, according to their scale, and be- 74 cause of unemployment at certain periods was only $2,700, therefore showing that we were- running way behind. We did not make a special budget for the City of New York, but the Arbitrator has in his possession a study which was made tor the other unions by Mr. Clark, which shows that budget to be $2,700, which is rather near ours. We said it was $2,700. The budget compiled by the Labor Bureau Is just about that figure. I was last week In Cleveland and made a similar study for the cloakmakers, and there it was Just about $2,800. So It shows the prices are still about the same and have Increased about the same everywhere. I Just want to call attention to one more point with re- gard to the health of the printers. We have here a table on page 12 of the rebuttal brief in which the printer was considered by some among the farmers as regards his health. I cannot understand how this matter was handled, but we are giving here a table showing the age at which each representative of the vari- ous crafts here is supposed to die because of his occupa- tion. Then it was taken out from the Typographical Journal, and a different figure was introduced and a com- parison made, and according to this table the compositor and printer Is supposed to die at the age of 40 years (some of these people ought to be dead. I suppose) ; then they take the figure given in the Typographical Journal, 53 years, and compare the average, and they use the figure in the table which shows the average age of death being forty years. I would rather use the figure of the bureau which made a study of occupational diseases, and the mortality, as against the 53, because the 53 is rather a high estimate. It does not compare with the figure given — 40.2, and the figures are at the top. They give engine men and com- positors and then printers, and they do not belong to the farmers and farm laborers, according to their calculation here. Everybody knows that the printer who works on type is, in every report on occupational diseases and mor- tality, the printer is at the top, so far as the mortality level is concerned. In conclusion, I would just like to call the attention of the Arbitrator to the argument to which Mr. Rouse re- ferred, that the employers always make the argument that it will drive work out of New York if the wages are in- creased, or if other conditions requested by the unions are granted. It reminds me very much of i study I had to make in college, in Pennsylvania, when I studied mining legisla- tion. I read some of the briefs submitted to the Legisla- tive Committee in the '60's or '70's, presented by the coal mine barons, in which some of those people appearing be- fore the Legislative Committee got so enthusiastic and ex- cited In their argument that they told the committee "If you pass this law for safety and health in the mines we will remove our properties out of the State." That was the mines. They got so excited aljout that that they thought they would scare them by threatening to move their properties out of the State, but it happened to be mines, not machinery. They are natural resources, and I think it is about the same argument here. Dr. Klrchwey — Slightly more movable, that is the only difference. (Laughter.) Mr. Trachtenberg — I just wanted to take up a few of those points. Dr. Klrchwey — Very glad to hear from you. Mr Rouse — Now, Dr. Kirchwey, I want to call to your attention that all through their brief they question the union's evidence, as subject to a question of impartiality. Then they go on and read innumerable letters from ultra- biased sources, and we again say, and we have thrown down the challenge, and the challenge is irrefutable, that the Periodical Publishers' Association are back of the fight, and they are not in this conference, but they are very close to this conference, and that la the data and the source from which all of their documents have been sub- mitted; and it is self-evident that where men themselves are increasing their own rates, all the way up to 118 per cent.— 112 cents for that little agate line— when the going is good, they want to get it and they want to get it good, and they want to keep us down, and they are behind the employers in this controversy, and the evidence here is not worth the paper It is written on. tJo,i„/ri/..i Dr. Klrchwey— They are merely tools of the Periodical Publishers 7 Mr. Rouse— No. They are accessories before and after the fact (Laughter.) The general thing is that the or- ganilatlon i^efrlng before you Is entitled to an adequate increase at this time, and they know that If it was in their power to negotiate without the interference of the Periodi- eal Publishers' Association this matter could be adjudicated without arbitration; but they are pressed, and they were pressed to the manner that I described in tills conference of September 23. They are the so-called middleman be- ?ween^s and the real people above; and we would like Dr TCirchwev very much to see some of the books of tnese freanStions that are so poverty stricken and are increas- talthefr Hneage 112 per cent. We would like to see some S the salaries there. For Instance, we know that one of the arguments used in the House of Representatives against thl SS zone rate was the fact Introduced by Congress- man ^ordney, that the editor of the Ladies' Home Journal received $100,000 a year; that the editor of the Saturday Evening Post received $100,000 a year; and the Oongress- man there practically said, "This, gentlemen, is $25,000 a year more than the President of these United States re- ceives"; and the United States is conducting a subsidy for these, periodical publishers throughout the United States. Now, "we would like to find out Just how many of these salaries are being paid in these concerns that are trying to get from the workers, the real producers, what they are justly entitled to, but we cannot; but some day, God will- ing, maybe we will. Now, as to their air of gloom about the cancellation of contracts, and the business going to the "Demnitlon bow- wows." You can make it a little stronger, but I think that emphasizes my statement; the dealing in futures, the speculation, the prophetic vision, and all of these charac- teristics that come from the poor downtrodden publisher who, as I say, is raising his rates up to as high as 116 per cent.; he forgets the fact, Dr. Kirchwey, that when business is extremely good, advertising is not so good; but when business is not good, printer's ink and such things bring business to these concerns, and we all know that where a concern will raise its rates, running all the way up, as I say, 116 per cent., that for the moment a certain resentment will take possession of the advertiser, and he will decline for a time to give an order; but after due re- flection, and vrithout the assistance of an arbitrator, be- cause the publication has him by the throat, he must either advertise or have no business, and they do not arbitrate. Again, they say "Pay, take it or leave it"; but if we ask for something we must arbitrate. Also, I want to call to your particular attention just at this time, that the holiday season and the holiday issues of the magazines have gone to press, and there is always a lull for a short period at this particular moment. It is customary. It ia usual. In the newspaper industry it takes place immediately after Christmas and remains over New Year's, until prob- ably the first or second week in January, and then the white sales begin, and then business revives. It is so with the magazine industry; and they know it Just as well as we do. And in spite of that, we show 2.6 per cent, of unem- ployment; and their statements of these other industries brought to your attention this morning confirms by the magnificent showing of the printing industry the Bta,bility of our trade. Now, they brought a letter from Mr. Wilder, who is a prominent member of their organization, who was a promi- nent member of the Committee of Five last year. Naturally, Mr. Wilder submits a statement that is very advantageous to them, because he must do it. He is a paid employe of the publishers. Mr. Rosett, also a* party to the controversy, speaks about new equipment and so forth, going in there, and they fciave no need for it. If they have not any need for it, why should they put it in, and why are they ordering it? They usually do not use them for ornaments, Dr. Kirchwey. They referred to the Hubner Press, and to the fact that the Hubner Press was not operating with half their force. The Hubner Press employs how many of our members, Mr. Douglas? Mr, Douglas — Usually, up to about October, three men. Mr. Rouse— Three men. How many do they employ now? Dr. Kirchwey — They leave 1% on the job. Mr. Rouse — So they must have one man, and then another man with a peg leg. Mr. Douglas — They have two men now. Mr. Bouse — The Giles Printing Company has no compos- ing room, don't employ any of our members; do nothing but press work, and they must have been pressed to very sore straits if they cannot produce any better evidence than that to substantiate their case. We just want to submit — we are sorry that we have to burden you with these additional mementoes of our rela- tionships — but we submit for your perusal an advertisement that appeared in the December 7 Herald reading as fol- lows: "P. P. C. Printing Facts. We started in 18S4. Our growth was gradual at first, but it has been very steady. By 1914 we were doing a business of $5,000 a year.' In 1917 the million dollar mark was passed. In 1919 the $2,000,000 mark. This year's business will exceed three million. Additional printing machinery is now being in- stalled as rapidly as it can be constructed. By the end of the present year we shall be in a position to handle $3,500,000 worth of printing. Publishers Printing Company, 211 West 25th Street. Telephone, Chelsea 7-8-4-0." I notice that the employers did not use the telephone number in submitting facts for the consideration of the Arbitrator. I submit that in evidence — one of the parties to this controversy. Mr. O'Connell — They also print the Literary Digest. Mr. Bouse — They print the Literary L?igest, and while the Literary Digest has been mentioned I might state, Dr. Kirchwey, that the Literary Digest tried to justify Itself in a letter submitted by the employers; but do not forget this fact, Dr. Kirchwey, that on October 1 last the Lit- erary Digest increased its rates 33 per cent. It has in- creased in circulation and increased otherwise. The employers concede our statement in regard to In- 75 creases. They have made no refutation of it. They can- not, because the documents are irrefutable, and that should weigh with the Arbitrator in rendering a decision for the union. They say that work is going out of New York. I glo not believe any of it is going to Perth Amboy, where they are paying as much as they are in New York City, or to New- castle, Pa., or to New Rochelle, or to Hackensask, N. J., where they are paying $44.00 for 44 hours per week; and, incidentally, - to Chicago, where since last February they enjoyed a higher scale than New York City, receiving last February the $46.00 wage scale for day work, and in August of this year their scale was raised to $51.00' per week. At the present time hand work and machine work there is a differential there, but I am only referring to hand work. In hand work at the present time Chicago is receiving $6.00 per week more, than New York. Now, if they are going to Chicago — how can they go to Chicago when they are paying the printers doing hand work and machine work, I believe, this $2.00 more? How can they pay them more in Chicago and do the work there at a higher scale when we are working on the lower scale? It Is inconsistent. Doctor. It is self-evident. In addition to that, St, Louis has a higher scale. Denver has a higher scale. San Francisco has a higher scale, and Cincinnati, by the award of Judge O'Hara, rendered Novem- ber 4 of this year, has $46 per week. They canpot escape those facts. They are irrefutable. Again, I just want to call this point to your attention: In the submission of our data and the submission of our statements covering publications, we have referred only to New York , publications, parties to this controversy. The employers have gone all over the United States, and, as I said a moment ago, if we stayed long enough before you, they would have been to China or Japan; but we have sub- mitted only New York publications, and they are the only ones germane to this issue — the economic conditions of the industry, the printing industry in New York City, as we know it, and as we prove it before you by documentary evidence. Again I refer to their remarks about advertising of 1920. Wo have still a long way to go in the month of December and it is speculative, of a character that could not be con- sidered good evidence. The cancellations I have referred to, based on increased lineage rates, and in the first breath resentment may have set in, but after the public realizes that printers* ink is the only available thing to make its business, it will have to succumb to the inevitable, and the publishers, remember, Doctor, do not arbitrate these ques- tions. They refer to Hearsfs Maso>sine. Hearst's Magazine increased its rates all along, as 'we have submitted in evi- dence. They referred to the Cosmopolitan'. The CosmO' politan has increased all along. It is submitted in evi- dence. Harper's they referred to — it has Increased 50 per cent.; rather a modest increase for the average employing printer, but it is very immodest if we ask for 40 per cent. I notice that the financial statements obtained by the Union by great, great effort, were gracefully glossed over by the Elnployer. I am sure that if we had the time and could do the work necessary to bring them all before the bar of the Arbitrator, that the disclosures would be equally as roseate as we have said. I leave you to draw your own conclusions on the way that they have handled this particular phase of this controversy — not one word of denial or rejection of the statements as 'submitted by the Union, from Dun's Mercantile Agency. Now, they speak of advertising — their contract rates and ..thpir discount rates. Dr. ■ Kirchwey, to prove what the Pictorial Reviem is doing, and to verify this book, which is unquestionable — I have some lOO or more of them, but I know you have enough burden now — I will submit the Pictorial Review rate card issued Iviay 1, 1920, effective with the January, 1921, issue: Per agate line. $13.00. time discounts none. Quarter page, 200 lines; $2,000. Quarter page, 100 lines, $2,600. Half page, 200 lines, $5,200. Pull page, 800 lines, $10,000. Preferred positions, inside cover, two-colors, $12,000. Page inserts, three or four colors, $14,000. Four colors, $17,000. If you could see anything of that con- tract and their rate card that verifies any statement that tfcey have made on yearly rates, I can not. The same way with Vcenity Fair, I will just submit those, and I could submit one hundred more, if ynu would like to look at them, but "I think it is unnecessary, Doctor {handing cards to the Arbitrator). They ask you in the face of all of these irrefutable facts and documents, Dr. Kirchwey, they ask you to con- sider their letters as against the facts we have disclosed. They are arbitrarily raising rates with no consultation with the customer or consumer, so to speak, and yet when the men that produce these artistic masterpieces for them ask for something in return for that which the men are giving them to derive revenue from, "we must arbitrate. Don't give him anything!" Yet they have' in- creased to 116 per cent. Why, to us, Doctor, it is absurd on the face of it. They refer to one magazine there with one cancellation, which was for $17,000 for a three-year period; and I feobmlt evidence to show that one magazine is getting ^17,000 for one page, one issue, and the other is three years, and they expect us, us that know, if I may be pardoned for the word, "the game,"' to believe those things. Dr. Kirchwey — I think their argument is addressed to me. Mr. Rouse — ^Well, we are endeavoring to show you so that you will be as wise as they are. Dr. Kirchwey — I do not think they have much hope of persuading you. Mr. Rouse — But when they say that this has come from a biased and a prejudiced source, from the Union's standpoint, yet these biased sources and those facts as presented there are self-evident and documentary proof to show what they are doing as against what we are trying to do. We can not increase our rates without going to arbitration. They do not resort to that particular way of doing business. Incidentally we might remark that the Pictorial Review has recently erected a beautiful 13-story building, with a very handsome clock on the top, and I presume that some of the money that rightfully belonged to the com- positors, helped to put the bricks in the building. Mt. Oppenheimer — Not many bricks there; it is nearly all iron . Mr. Rouse — We never got any of their iron dollars. The Pictorial Revie'ot — I have ^demonstrated what they have done. They have increased their rates, their page rate, their line rate, their per copy rate, their year rate, and increased their circulation, and in every month in 1020 their advertising lineage (as submitted by the Union) has increased over the preceding month, of 1919, month by month. That is the way they compare in the newspaper and in the periodical business. They compare the business of this month over that month. It is not taking December and comparing it with January, but it is month by month. You know, Dr. Kirchwey, that many of these women's magazines, and the general magazines and the business magazines, are governed a good deal by the seasonahleness of the industry that they particularly represent — cloak and suit and women's goods; various seasons of the year; and clothing; and it shows in these months based on sea- sons over the preceding month. That is the only logical way, the only honest way that can be compared, and not in the juggled-muggery that they attempt to persuade you by. They refer to The Gentlewoman. The Gentle- woman increased its line rate 33 per cent, its page rate 41 per cent, and increased all along the line. Physical Culture the same way. Now, then, they refer to McGraw-Hill, and I just want to bring this point to your mind forcibly, Dr. Kirchwey. The McG-raw-Hill Company employ 189 men of Typo- graphical Union No. 6. and the McGraw-Hill* Company pay every one of those 189 men over the minimum scale. There is not one single, solitary man in the composing room of the McGraw-Hill Company getting the minimum wage, which is a very important fact in these proceedings. They are paying from a dollar all the way up, which speaks well for our organization, and also for their busi- ness, of course. We have referred to our good friend. The Nation Press, that our organization holds in such high esteem. It was our one and true friend and defender, after they found out the true facts last year. I have brought the Nation Press very forcibly to your attention today, as operating on a five-day week, and a five-night week, paying the regular rates, and in many Instances over the regular rates, and I pass on to the next point on account of that. They refer to the People's Home Journal. They have increased their rates. They have increased their selling price, and they have increased in circulation. They refer to the letters there, if you read them, about the enormous increases that they put in, and the advertisers had noth- ing to say in the matter, and we agree with them; and I think the Arbitrator did agree when he said "$4.25 for that little piece?" (indicating agate line), and then when he found out that the little piece of metal that he held in his hand meant $8.50, it still looked much larger, I quite think that when an advertiser gets that In- crease of 112 per cent, he does hesitate; but when he finds that he has got to come there in order to get the business and keep it going, he will have to pay that rate, and he will have no Arbitrator to come between him and the Publisher. And, yes, don't forget this fact, Dr. Kirchwey, that the rate will be paid whether we get any- thing or not. They referred this morning to the books, and we pre- sent for your perusal an article appearing in the Sun o* April 15, 1020, "Book prices. A bookseller points out the low cost of reading magazines," which is an article signed by Frederick G. iMelcher, Executive Secretary of the National Association of Book Publishers; and in one place — I won't read the whole article, in order to save time, but I trust that you will read this article, Doctor — the Employers said that the Printers were getting $21.00 a week in England. Here is what Mr. Melcher says: "Some of the heaviest increases in current book- prices have occurred on imported books, and yet the English printer receives today less than half of the sale paid in this country at present rates." In other words, it costs 76 more on the imported books than it does on the books as reproduced in this country, but at a higher rate. Why? The answer is very plain, that a great deal o£ the book production in this country is by plates. They are set once. They are electrotyped and thev are laid away, and when tbey want a new edition, the compositors do not do any of the work. They simply bring the plates out, put them on the press, and print a new issue. Once set up, it is their property, and they reproduce it as the time goes on; and you can readily see the enormous profits which can be made in a condition of that kind, further confirmed down below by Mr. Melcber, when he says this: "There is no other item used by citizens that has any- thing like this basis. If we could obtain all our needs on as easy a basis as our reading, the high cost of living would be unknown." I submit that for your perusal, and I just want to say one more word in passing, about the Machine Composition Assbciation. The Machine Composition Association is an organization that does work for the printers, or in other words, deals exclusively with composition, and does not enter into press work, and so forth; but the various com- mercial houses that have text matter, or, as we term it in the trade, straight matter, to set, send it to these machine composition houses, and they set the straight mat- ter and send it over to these other houses which set the display type around it, and make it into pages, and produce the book, or whatever it may be. They employ exclusively our people; and that machine composition (in the case that I" referred to before, where they are getting an increase in hand composition of 30 cents an hour, and machine composition forty cents an hour), refers directly and specifically to our organization and as I referred again to Mr. Jennings, who is pay- ing only four men the minimum scale, the rest getting from $55.00 up; and in many cases, namely, the Manhat- tan Linotype Company, that was recently expelled from the Machine Composition Association, pays $60.00 a week. Dr. Kirchwey, to our linotype operators in their employ. And I corrected the statement — the Mergenthaler Com- pany, that showed such unusual profits, deal exclusively in linotype machines, and must be indicative of the real con- dition of the industry by the enormous profits they shov^. Now, then, counsel for the employers this morning re- ferred to a gloomy statement by the American Type Foun- dry. Let us see. The New York Tribune, December 9, 1920: "American Type Founders earn $14,56 a share. For the year ended August 31, the American Type Founders Company reports net profits after taxes of $761,533, equiva- lent after preferred dividends to $14.56 a share earned on the $4,000,000 common stock, as compared with $518,418, or $8.56 a share in the preceding year. Profit and loss surplus showed $1,684,703, compared with $1,261,921 in 1919." A fairly good showing, I should say, Dr. Kirchwey (hand- ing paper to Arbitrator), and they sell the type to these men that we set it for. That speaks for itself. Now I am rather amused, Dr. Kirchwey, that the em- ployers would present such a statement as they did this morning, in regard to the expanding of printing establish- ments printed in their own trade Journals, and also the fact that what they were displacing was old worn-out material. I could almost see the green mold and the moss, the way the counsel for the employers presented it; but did it occur to you, 'Dr. Kirchwey, that this old worn-out material was going from Butterlck's to the McGraw-Hill Publishing Com- pany, one of the best known and prosperous publishing houses in the United States; and do they expect intelli- gent men to believe that old-worn-out rattle-trap machinery would be taken by a corporation of the size and magnitude of McGraw-Hill and installed in their plant after Butterick got through with it? No intelligent man could swallow such a story. And we wish to call particular attention. Dr. Kirchwey, to how gracefully Mr. Brower slides over the speech of Mr. Andrews. The speech speaks for itself, and was well spoken, after a thorough investigation by the President of this Association, and of course he said something that was truthful and in our favor, and you should take that with a grain of salt. I leave you to make your own deductions on that. And then again they submit arbitration proceedings in the clothing industry; arbitration proceedings in the ship- ping industry; arbitration proceedings in the pork indus- try; packing industry; mining — I don't know what-not; and yet, when we submit to you a bona fide arbitration decision recently rendered in the city of Cincinnati, by a well- known Jurist of that city. Judge O'Hara's decision, it is speculative; and they expect you to discredit a judge's de- cision In this industry and take a decision on the pig in- dustry. I leave you again to draw your own conclusions on statements of that kind. I think. Dr. Kirchwey, we have fairly covered our case. I think we have submitted documentary evidence, not of a biased character, particularly the financial statement from the Dun Mercantile Agency, the irrefutable fact that all of these magazines are increasing their rates, produced by unquestioned authority. Our other data, also on unemployment by the State De- partment of Labor. Our books are open to you or them for confirmation, all from authoritative sources. Tlie Typo-Mercantile Agency, which is the Bradstreets of the industry,— failures and so forth,— all of the facts are Derore you. We have laid all of these facts before you. We have tried to tell you our story in an honest, straightforward, clean-cut manner. Naturally, in a contest of this charac^ ter, there is great spirit on both sides. The employers— I wish to say I congratulate them upon what they have done tor their interest, and I trust that during these negotia- tions some of our little tiffs have been spirited, but it has all been in the interest of either side. Doctor, we feel this way— that they are fighting for a cause not wholly their own, but under duress. For us we are fighting for the great mass of toilers in our industry We feel our position. We have had the handicap Doctor rather than those gentlemen; and the facts are self-evident in the voluminous rebuttal exhibits, sur-rebuttal exhibits today, on letters reeking— reeking in partisanship— reeking misstatements, and refuted by their own documents as pre- sented by the union. We thank you for the great courtesy that vou have ex- tended us during these deliberations, and we rest our case with you, feeling that you will give it careful Inquiry, and later on a just decision. I thank you. Dr. Kirchwey — Have you concluded? Mr. Bouse — I have concluded. Doctor. Mr. Brower— Have you forgotten that copy that you have there? Mr. Rouse— I will just call it to the attention of the Arbitrator. I did not want to burden him, but Dun's In- ternational Review was mentioned today, and I submit for your inspection the November number. It has 28 pages of reading matter. All the rest are advertisements. That is one of the letters they submitted this morning, to show you how badly Dun's is suffering. That is a sample of the advertising revenue that can be gained from that periodical. (Handing periodical to the Arbitrator.) I just give you also the Outlook with its enormous amount of advertising referred to, and compare that with Dun's, and you will see that the large amount of loss does not ap- pear. ToTon and Country is a magazine that has recently come into New York from Stamford, Connecticut, and is printed in Mr. Brewer's establishment, I believe. I think that concludes all that we have to present. Dr. Kirchwey — I congratulate you, Mr. Brower. Mr. Bouse — Just one word. Doctor — Dr. Kirchwey — May I express the hope that it is as profitable as it looks, Mr. Brower. Mr. Brower — It is not very — I will answer that. Mr. Rouse — Just this word. The Employers made a sug- gestion this morning that if there was anything in the proceedings that was questioned, that they would be glad to confer with you, and so forth. We trust that if there are any subsequent meetings, or any subsequent inquiry to "be made by the Arbitrator, that the request will be sent jointly, and that we will be present when any sag- gestion from the Employers is taken up. Dr. Kirchwey — As a matter of course. Mr, Rouse — We only ■ make that statement based on what the Employers have said. Dr. Kirchwey— Mr. Brower, have you anything further to say? SUR-REBUTTAL OF THE EMPLOYERS Mr. Brower — 1 do not know — Mr. Rouse — I would also. Dr. Kirchwey, like you to see a copy of that letter which is to be submitted, that was sent out to the employers as you requested, as the ques- tionnaire. Mr. Brower — I will Just touch a few spots: I won't take up more than a few moments. Doctor. Dr. Kirchwey — Could you give me two minutes in which to telephone and break a dinner engagement, which is al- ready broken by the loss of time. Mr. Brower — Same here, as far as I am concerned. We shall not keep you long. Dr. Kirchwey — I thank you for the opportunity, I ,am free now. We will proceed. Mr. Brower — I am going to be very brief. Doctor. Our friends, of course, have made a very extended ora- torial effect here, and pointed out? the fact that they are old at the business, whereas, I admit that this is my first opportunity, and I feel under the handicap of not be- ing able to enter into any flights of oratory, and expound the injustices of Perth Amboy, or New Hochelle, or any other place, as compared with New York. 1 am Just going to refer to one or two little things. This question of Town and Country, I do not know ■whether they would bring it in or not, but I see they have it there, the facts with regard to Town and Country are that we printed the publication a number of years ago. It left us to better itself, by way of cheaper rates, and after the strike, it came back to New York again, and was printed by one of our members for three or four months, until March or April, and then went out of town to a idealistic shop, a man who succeeded in getting somebody as cashier to put up some money to run an ideal plant, and they gave them their Job, and took it away 77 from the member who was priqtlng it, and kept it there a few months, and he went the usual way and busted, and they kept it there two or three issues more, hoping against hope that the thing might in some way work out. Then they came back to New York, apparently because they could not longer find somebody else in the country to do this class of work. They did come back, and we printed two or three issues, but they are at their old game. It was reported to us the other day, it was put up to Stamford to try to get a printer there to give them a price and take the job. It came back through another one of our publications, who told us of it, because the Stamford printer told them about it. I Just want to refer to this electrotypers' situation, be- cause I cannot let the record stand in any way that we stated that there was a combination between the employ- ers and employes in the electrotyping line. We did not state it at all, I was very careful not to state anything to that efeect. I stated that some of our people suspected that there might be something of that kind; that the smoke might indicate that there was fire somewhere, and from that point of view, and that alone, we left it for whatever It might be worth, in that, condition. I only want to correct the suggestion that we in any way stated there was such a combination; and it really surprised me that they have such positive knowledge on the flituatlon. However, we were perfectly willing to let it stand in that condition, and so far as we are concerned, I merely want to correct that statement of what is sup- posed to be our positive statethent. Reference has been made to my talk — I cannot call it any more — at the Craftsman's Club. I was invited there as a guest, because I was President of the Printer's League, and for no other reason, and realizing my position as a guest, I tried to be careful what I said by way of criticizing another guest, an electrotyper, that evening. Like many of those things that are partially correctly quoted, and partially incorrectly. The burden of my statement was that the printers were peeved, and it was correctly quoted in that respect, a bit, and that the elec- trotypers had seemingly closed up matters, and without in any way discussing the matter with the printers, . who were the people who were expected to pay their bills, and that the printers felt peeved over it. That is the burden of my remark. I certainly would not take an occasion like that, as a fellow guest, to say anything real serious. They ,speak, by the way, of the electrotypers, and as I was coming here, I happened to be in the car with Mr. Timmins, one of the two, by the way. of the compositors, and he pointed out way back in 1860, I think he said, that compositors were getting $12.00 and electrotypers, $27.30 — I think he said; that they kept on that basis for 24 years, and then the compositors began to crawl upon them and crawl upon them, and they, I guess, felt they had an opportunity now to take advantage of their posi- tion, and so they are trying to get on the back of the compositors again. Mr. Oppenheimer — He must have been smoking opium before be saw you. Mr. Douglas — Sure it was not in 1812, Mr. Brower? Mr. Eouse — Better go back to the Crossing of the Dela- ware. Dr. Klrchwey — That is at any rate, what in law would he called hearsay evidence. (Laughter.) Mr. Oppenheimer — Very much hearsay. Mr. Brower — ^This question of permanent wages, their men are already getting permanent wages. If they are in a position in the industry where they can enforce per- manent wages, then, of course, all this comparison is not right, and they do not need any help, they go out for it themselves, they do not need any help or sympathy. Mr. Rouse — Then you would suggest no agreement with the employers. Mr. Brower — -I am talking in spite of wages. Mr. Bouse — Then let it go, and have no agreement, and no collective bargaining. Mr. Brower — I have not said that. Mr, Rouse — That is your deduction. Mr, Brower — No. This McClure reduction, there is some- thing wrong about the facts somewhere. You cannot have a 20-cent individual price and a $3.00 yearly rate. Every- body would be buying individuals, and they can buy twelve individual copies for $2.40, when it costs them $3.00 a year to send in a yearly subscription. Certainly, there Is something wrong. There is some typographical error there. Mr. Rouse — It occurs in three books at different periods. Mr. Brower — Now, Machine Composition houses. There is a funny point there, it seems to me, our friends are making. These machine compositors are trying to be busi- ness men, so we are told, and we do not seem to dispute it. , I believe them to be so. They are trying to find their costs, and they are trying to sell on these costs and get a profit. They are paying the wages current. They are paying premium wages, these gentlemen point out; and yet when they take that admitted cost and try and . put on a little percentage of profit, which they show by the facts as stated, as ten per cent., why, then, they are regular profiteers, and some of it should go to somebody else. 78 It seems to me that there is there a sign of the times, when they are trying to find their costs, and trying to be business men. that they can do business in a businesslike way, and have a small margin of profit. However, the machine composition branch is a very small part of the printing industry taken as a whole. What percentage they are of the industry, I do not at- tempt to say. but it is a small part; also the publishing industry is, in a way. a small part. They are among our association, some of the larger publisher members. They referred, most of them, to the Pictorial Review, BuUerick, and Collier's, and I guess of that class perhaps thei'e may be 15 out of 20 belonging to our association, but we have between 600 and 700 other members In the Job Division, some of these members of the larger shops printing publications. I do not know that anything I state would be the case, but I am sure there is not half of the business publishing trade. My impression would be somewhere in the neighborhood of 30 per cent, publish- ing, and 70 per cent. Job, but that might not be nearly true. Dr. Kirchwey — When you say publishing, you include periodical as well as book publishing ? Mr. Brower — No. periodical publishing. Dr. Klrchwey — What percentage of your work is book publishing ? Mr. Brower — I do not know; there is but a little of that in New York by percentage. Mr. Rouse — Very little book publishing. Mr. Douglas — Hurley could tell. Mr. Brower — Mr. Hurley could tell better on most of the book work. A good bit of it is done out of town, be- cause of facility of sending a batch of copy to Bingham- ton and Norwalk, or something like that, and getting plates back. A great deal is done out of town, and a great dt^al of that book printing is done out of town, quite a volume of It, and Mr. Hurley can answer, per- haps. I do not know what percentage. It would have to be an estimate on your part, what percentage of our printing Is book printing, Mr. Hurley — Wherever 6 is interested? Mr. Brower — Yes. Mr. Hurley — Not 10 p^r cent. Mr. Rouse — Mainly plate work, is it not? Mr. Hurley — It Is all practically plate work. Mr. Rouse — ^W« are not interested in it. Mr. Hurley — We have not done a book now in three weeks. Previous to that, in the last year, we have not done morn than about four books a month. We had been running an average of one a year. Dr. Kirchwey — What is the name of your concern? Mr, Hurley — ^The Burr Printing House. Mr. Rouse — We have a financial statement on the Burr. Mr. Douglas — And I may say, Doctor, they refer to this work going to BInghamton. Vail & Ballon's men in Bing- hamton come from New York, and they have to pay them the New York scale of wages. Quite a little goes to Qulnn & Boden of Rahway. Dr. Kirchwey — I shall find it necessary, more or leas, in reviewing this evidence, to weigh the various bits of ftvidence which have been contributed with respect to the state of thp- bnok trade, with respect to the periodical trade, ns compared with the great bulk of your trade which is Job work. I am correct in that, am I not? Mr. Hurley — ^Mr. Douglas is not correct in regard to vages. I had a report from Mr, Vail yesterday. Dr. Kirchwey — I have all the data with regard to wages, and that is not bothering mn so much. May I ask to cut out that, that is, for my immediate purpose, a bit irrele- vant. What I want to know is, let me be frank with you-:— Mr. Brower — Certainly, Doctor. Dr. Kirchwey — I may as wpII iPt you see the workings of my mind. It is working all the time while this evi- dence ia coming in. Suppose I could find that the book trade is r*»ally going to smash and everything else is prosperous, to what extent would the situation be affected by the comnlete loss of the book trade? tjt Mr. Rouse — ^Ten per cent. Dr. Kirchwey — I should hate to have it lost, because I am more apt to buy books than periodicals, and I am a great deal discouraged, I may say parenthetically by the high prlcAR of books, but that is quite irrelevant; but what I want to know is, to whnt extent is the pros- perity, or lack of prosperity In the book trade, a factor in ynur trade, the Job printing trade only, and the answer is it does not exceed ten per cent. Mr. Rouse — So far as No, 6 is concerned. Mr. Brower— My estimate would be Ipss than No, 6, but so far ns thft trade goes, with respect to binding and printing as well as composition. I should say ten per cent, was a top average. Mr. Rouse — Yes. Dr. Kirchwey — That Is a very relevant fact with me. In the second place, the periodical trade, when you say that comprehends say thirty per cent, of your work Mr. Brower — That was my rough estimate. Mr. Rouse— More than that. It would be above that, Doctor. It is 60 per cent., at least. Dr. Klrchwey — The periodical? Mr. Rouse — Yea. sir, I gave you a card today. Doc- tor, with the numbpr of magazines printed in that estab- Ushment alone. That establishment employs 140 men. Dr. Kirchwey — Yes. Mr. Rouse— That Is characteristic. Mr. Oppenheimer--Of the big offices. Dr. Kirchwey— The McGraw-Hill Company? Mr. Brower — Yea. Mr. Rouse — 189 men there. ' Dr. Kirchwey— Let us say the periodical trade is ap- proximately one-half. Mr. Brower — I would say nearly one-half. I do not think it in quite that. Mr. Oppenheimer — That Is very conservative. Dr. Kirchwey— That includee the advertising matter. Wbat is the rest of your trade? Mr. Brower — Letter-heads, catalogues, and all kinds of miscellaneous printing. Mr. Rouse — Now, then, I will explain another phase to you. Doctor. We have what is known as distinctly the advertising houses, those houses that do work for adver- tising agencies. They set up the ads. in those establish- ments, and there are electrotypes and plates made from them, and they are sent to the various magazines and newspapers which are affected by the advertising, their own publication houses do advertising work, and specialize in setting up ads. for advertising agencies. Dr. Kirchwey — ^Those ads. go into periodicals. Mr. Rouse — They go into the periodicals, yes. That is another phase of the question that has been brought out, that is very pertinent to this question. For instance, when these ads. are sent in by the advertising agency to these composing rooms where our men work, they set the ads. up and then they make a plate of those ads. Then the plate is submitted to the various agencies of the various magazines, and they do not have to do any composition at all; they print right from that plate; and mind you, where those plates are furnished, Doctor, they have to pay the same rates as though they had brought that in manuscript form, and it had been produced in that composing room. Mr. Brower — Newspapers only in New York City you are referring to? Mr. Rouse — It goes to newspapers and all the periodicals in this City and elsewhere. Dr. Kirchwey — Approximately 40 per cent, of the printing business is varied job printing, as distinct from book and periodical. I want to make a rough estimate of it. Mr. Brower — 'Yes, I guess that is pretty right.__ Mr. Rouse — It is a way over 50 per cent, of this pub- lication work, and we have this advertising work that we speak of, which is growing every day. Mr. Douglas — I want to call your attention to one fact in the advertising .work. For instance, Kaufman or somebody, advertising agents, send in to one of our adver- tising houses, and they set that page of type up, and they have electrotypes made, and they will not alone send it to one printing office, but they might make ten or fifteen casts of it, and they send it out to ten or fifteen different magazines, and they never recompose it. It is printed from the plate. Mr. Rouse — They get the rate just the same as though they set it up. The difference between the magazines and newspapers, if they give it only to one daily newspaper office, that advertisement has to be reproduced by the newspaper within four days' time. Mr. Oppenheimer— The penalty that is placed on the newspaper is not- on the book and Job printer. Dr. Kirchwey— You do not use the old plate. Mr. Rouse — We let them use the plate, but they have to_ use that in type, and have it ready the same as in the original from the composing room itself; but we do not have that restriction placed upon the periodicals or maga- zines in the book and Job office, showing another advantage they have. Mr. Brower — It is all set up and thrown away again. Mr. Oppenheimer — But you are not subject to that. Mr. Douglas — One setting does for 15. Mr. Rouse — And the work is taken away from our people. Dr. Kirchwey — ^Well, gentlemen, is there anything further to ba submitted? Mr. Oppenheimer — I hope not. Mr. Brower — We rest. Dr. Kirchwey — May I then express, at the conclusion of this hearing, my great satisfaction at the manner in which this case has been presented on both sides. I have been an Arbitrator before, but I never have had a case in which the evidence on both sides was so fully and BO fairly presented. I believe that the attitude on both sides has been an absolutely fair one, and they have sought to present not evidence that was merely favorable to their own side, but the evidence in the case, and Just so far as it is possible in a matter of this kind, to gather and submit the evidence, I think you have submitted it within bounds of reason. All the evidence can not be submitted. Nobody knows Just exactly what the conditions on both sides are. The Union representatives have expressed the fact that they were at a disadvantage In regard to knowing what the state of the industry is. They have been compelled to glean the facts from a variety of more or less public sources for the most part, and we are all more or less at sea on the question as to Just exactly wJiat the pending or current changes in the cost of living are. That is to say, it is a fact that can not be demonstrated absolutely to everybody's satisfaction; but I think you have furnished me with all of the evidence that is avail- able to such an extent that I may withdraw the word which I used before, which is that you must furnish me with as much information as possible, so that my "guessing" shall not be too wild. (Laughter.) I think that you have reduced the margin of guessing, and given me a big body of material upon which my Judgment can work, so that the result will be a judgment and not a guess, I hope, at least, that that will be ao. I am very much indebted to you for your consideration, and the courtesy which you have manifested toward me throughout this hearing; and more particularly for the compliment that you have paid me, in assuming all the way through that ray attitude was one Of fairness and impartiality. I think that is all I have to say. f (Whereupon, at 6:45 o'clock p. m., on December 0th, 1920, the hearing in the above-mentioned arbitration was closed — subject to call, if desired.) ARBITRATOR'S FINDINGS Arbitration Proceedings Between New York Typographical Union No. 6, 1. T. U. and Printers' League Section, Association of Employing Printers ^ of the City of New York, Before George W. Kirchwey, Arbitrator. The respective parties were represented as follows : The Union by: Mr. Leon H. Rouse, President; Mr. John S. O'Conncll, Secretary-Treas- urer; Mr. Theodore F. Douglas, Organizer; Mr. William Robinson, Mr. Walter McCoy, Mr. Louis Fischer, Mr. S. Oppenheimer, Mr. Alexander Trachtenberg, Economic Advisor. The Printers' League by: Mr. A. C. Brower, President; Mr. G. J. Anderson, Managing Director; Mr. F. A. SiLCOx, Economic Advisor. STATEMENT OF CASE: The heai tags were held in the office of the Arbitrator, No. 105 East 22d Street, New York City, beginning November 8, 1920, and ending December 9, 1920. The arbitration was held under and pursuant to a wage scale contract between the parties hereto in effect as of October 1, 1919, and operative for a period of two years, which provided for a definite increase of $6.00 on all scales set forth therein effective October 1, 1919, and of a further increase of $3.00 effective January 1, 1920, and which provided also for the opening thereof for a further readjustment by either party on October 1, 1920, "only as to the rate of wages to be paid; such readjustitients to be based upon the increased cost of living and the economic conditions of the industry at the date of read- justment." It appears that in August of the present year the Union formally initiated proceedings for an opening of the wage-scale with a view to securing a revision increasing the weekly wage of its members by $18 (i. e., from $45 to $63 a week), and negotiations were had which resulted in an offer made by the Employing Printers' Association of an advance of $4 a week over the prevail- ing \^age. This offer was rejected by the Union and the effort to effect a settlement by con- ciliation having failed, the parties proceeded to submit the matter in controversy to arbitration in accordance with the terms of an Arbitration Agreement entered into by them in con- nection with the contract hereinbefore referred to and operative for the same period of time. From the agreed statement of facts submitted to the Arbitrator it appears that the Union claims an advance of $18 per week for all its members over the existing scale (ranging from $45 to $51 per week) , while the employers insist that under the terms of the agreement no increase what- ever is warranted. Both parties agree that any award that may be made shall be retroactive and take effect as of October 1, 1920. OPINION OF THE ARBITRATOR: The case, which was elaborately presented and ably argued on both sides, covered a wide range of information, statistical and other, covering the two points specifically involved by the terms of the agreement, viz. : the increased cost of living and the economic conditions of the print- ing industry, and also the further question of the relation of the existing wage-scale to a proper standard of living. As no formal objection was made to the presentation of the evidence on the latter point, it was admitted, although, in the opinion which the arbitrator has formed of the case, such evidence was not relevant and could not properly be considered by him. In the view that the arbitrator took of his function he was not at liberty to set up an entirely new basic wage scale nor to revise the contract which had, by its specific enumeration of the bases on which a wage readjustment might be effected, barred from consideration the ques- tibn of the liability of the industry to provide the members of the Union with an adequate standard of living. A real issue was, however, raised by the conflicting views of the parties as to the proper inter- pretation of the clause of the contract which provided that the October readjustment, if any, should be "based upon the increased cost of living at the date of readjustment," but furnished no clue as to the date from which the increase was to be computed. The Union insisted that what wa.'! intended was the total increase since 1914, while the emplbyers contended that the ad- justment of January, when the clause in question because effective, was a settlement of the cost so of living question up to that time and that the clause providing for a readjustment could have reference only to a subsequent increase, that is from January 1 to October 1. Inasmuch as the estimated rise in the cost of living from 1914 to June, 1920, was 119 per cent., while compositors' wages had in the same period advanced only 84 per cent., and the cost of living increase of June over January was only 7.SS per cent., it will be seen that the difference was vital. The point was strongly contested but, in the absence of any direct evidence as to the intention of the parties, the arbitrator could not avoid the conclusion that the contract, speaking in January and having in view the adjustment which had just been made, aimed to provide only for such sub- sequent readjustment as a further increase in the cost of living might render necessary. This conclusion involved the assumption that the January adjustment was intended to be a definitive settlement ef the cost of living issue up to that time, an inference that was further sup- ported by the fact that the wage scale then adopted represented an increase of 84 per cent, over that of 1914, which corresponded almost exactly with the accepted percentage increase in the cost of living (83.1) during the same period. But the settlement thus attempted was vitiated by an unfortunate mistake of fact. The estimate of 83.1 per cent., which was based on the latest available data furnished by the Bureau of Labor Statistics of the U. S. Department of Labor, was in fact more than twenty per cent, short of the actual increase at that date, which was subsequently ascertained to be 103.81 per cent, by the report of the U. S. Bureau of Labor Statistics not re- leased till May 3, 1920.^ It seems reasonable to assume that in an adjustment which was, like the present one, based on the two factors of the increased cost of living and the economic conditions of the industry, the increase in the wage scale then agreed upon was to a greater or less degree affected by this error. Under these circumstances the arbitrator is of the opinion that, in estimating the weight of the factor of the increased cost of living in its bearing on the present award, he may properly make some allowance for the error which entered into the January adjustment. Turning now to the increase in the cost of living from January 1st to the date of readjust- ment, October 1st, the only reliable data are those furnished by the U. S. Bureau of Labor Sta- tistics covering the first six months of the period, which fix the increase at 7.55 per cent., for the City of New York, and this may fairly be taken to represent the state of the case at the date of readjustment. While we cannot shut our eyes to the fact that there have been recession? since June in some of the items that make up a family budget these have not been considerable in amount and have in some degree been balanced by a general increase in rents. There are, indeed, indi- cations that there may be a more substantial reduction in living costs with the exception of rents, during the next few months, but this is too problematical and speculative to be considered as an element in the award now to be made. The other factor in the problem— the economic conditions of the printing industry— is harder to appraise. There is no index number to show the degree of its rise or decline nor any accepted standard of what constitutes a state of prosperity for the industry. It is obvious that the industry must bear the burden of proof by establishing the fact that it is not in a condition to stand such an increase in the wage scale of its workers as the increase in the cost of living would, in and of itself, seem to justify. While the industry need not, to sustain this burden, prove that it would be forced into bankruptcy or even seriously embarrassed to maintain itself, it is not enough to show that its business is not now up to the standard of prosperity of the last few years or of the first nine months of the present year and that it is facing a further decline. It may be in a position to absorb this decline together with a reasonable increase in the wage scale without any serious impairment of its activities or its prosperity. The difficulty was that not even the accredited rep- resentatives of the industry had at their command the facts required to justify their apprehensions as to its future. , ^ . , ,, ^ But although their evidence on this point fell far short of a demonstration, they were able to show that the printing industry was to a considerable extent reflecting the general mdustnal de- pression which has recently set in, as evidenced by a progressive decline in the volume of its busi- ness" a marked falling off in periodical advertising, etc., and by that means to communicate some part' of their apprehensions to the arbitrator. While the extent and duration of this depression are too conjectural to be capable of exact estimation, they form an element in the situation which had to be taken into account. . . a uv i. 4.u ^ i.t. In view of all the considerations above set forth it is the opinion of the Arbitrator that the increase in the cost of living justifies a moderate increase of five dollars in the present wage scale and that the industry should be able without embarrassment to sustain this addition to the present cost of operation, the award to be retroactive to October 1, 1920. George W. Kirchwey, Arbitrator. New York City, December 24, 1920. 81 Cornell University Library KF3450.P71N53 Arbitration proceedings and the findings 3 1924 002 197 063