OPERATION OF AMERICAN MINIMUM-WAGE LAWS. As has already been noted, the period since any of the minimumwage determinations came into force is too brief to permit, at the present time, the formation of any judgment as to the ultimate effect of the laws, either upon the industry or upon employment therein. The immediate result of wage determinations is not necessarily indicative of what the later effect may be. It is likely that employers, when they find themselves compelled to increase the wages of the lowest-paid workers, will endeavor to provide for some system of training which will result in an increase of efficiency sufficient to balance the increased rates of pay. In other ways it is probable that the industries and the employees will find means to adapt themselves to the conditions created by the new requirements of the laws. While the brief period during which any minimum-wage determinations have been in effect thus limits the value of the conclusions which may be drawn from a study of the operation of the laws, yet the great benefit expected in the case of the worker, on the one hand, and the serious disturbance to the industry which was predicted, on the other hand, warrants a careful study of any material which will throw light on the real effects, however far such material may fall short of covering the whole subject. It has seemed desirable, therefore, to present rather fully whatever information is available showing the operations of any of the American minimum-wage laws. It should be pointed out that the most of this material is taken from the official reports, and that such conclusions as are stated are the conclusions of the authority charged with the administration of the law. CALIFORNIA. The minimum-wage law in California is administered by the industrial welfare commission. While the commission was organized in October, 1913, the work of investigating was not begun until the end of February, 1914. Since its organization the commission has been actively engaged in making investigations as a preliminary step to the appointment of wage boards and the fixing of minimum-wage rates. The commission reports that its investigations have been considerably hampered and delayed by the public interest in and the discussion of a constitutional amendment proposed by a resolution of the State legislature of 1913, to be submitted to a vote of the people on November 3, 1914. As there was some active opposition to the passage of the amendment, the investigations of the commission were in consequence 39 delayed until after the results of the election could be known. The amendment was carried by a majority of over 84,000 votes. It is as follows: SECTION 17. The legislature may, by appropriate legislation, provide for the establishment of a minimum wage for women and minors and may provide for the comfort, health, safety, and general welfare of any and all employees. No provision of this constitution shall be construed as a limitation upon the authority of the legislature to confer upon any commission now or hereafter created such power and authority as the legislature may deem requisite to carry out the provisions of this section. COLORADO. Although the Colorado act came into effect August 12, 1913, the board was not appointed until March 23, 1914. Then, through delay in securing a permanent executive officer, the board did not begin the study of local wage conditions until August 1, 1914. Data secured after that date forms the basis of the First Report of the State Wage Board of Colorado, for the biennial period ending November 30, 1914. Because of this delay in taking up its work, the board notes the fact that the data presented are somewhat fragmentary and incomplete. The board's report shows that it has secured wage data from employers of women in department stores, 5, 10, and 15 cent stores, bakeries, binderies, factories, and laundries. Such data were partially checked by statements from the women themselves. The results showed that of the 3,524 employees included, 23 per cent received less than $6 per week, and 54 per cent less than $8. Data were also secured in regard to telephone operatives. The board made no extensive investigations of cost of living, but reports that such facts as it has been able to secure lead to the conclusion that "the cost of living in Denver is no less than in any other cities where, after extensive investigation, it has been found that no woman can secure the necessities of decent living for less than $8 a week.' In regard to certain changes desirable in the law, the report of the board contains the following recommendation: From our experience it is evident that additional legislation is required in order to make efficient the present statute, limiting and defining more clearly the powers and duties of the board. In the fixing of a minimum wage in a particular industry or group of industries, adequate provision should be made for those who really know most about the case to be represented on the determining body. In other words, the wage board should be given power to call together a voluntary subordinate committee. If, for example, the laundry business is under consideration, this subordinate committee should be made to represent men in the laundry business and people employed in laundries-those who best know the needs of their particular occupation and, besides these, a certain number from the public at large. This committee should be authorized to report its findings to the wage board, which is bound to take them into consideration in fixing the minimum wage. MASSACHUSETTS. The minimum-wage law in Massachusetts came into effect July 1, 1913. The report of the commission upon the first six months of its work' stated that investigations had been made into the wages of women employees in three industries, the brush-making industry,2 the corset industry,3 and the confectionery industry, and had been begun in other industries. These industries were chosen on account of the large proportion of women workers among the employees and the low wages indicated by information obtained. In the brush and corset industries the study was extended to include every establishment within the State employing women. Later the commission took up the investigation of the wages of women in laundries, and is now engaged upon a study of the wages of women employed in department and other retail stores. 5 Throughout these investigations substantially the same method has been followed. In the investigation of women in department and other retail stores, which is now being carried on, the United States Bureau of Labor Statistics and the Commission on Industrial Relations are cooperating with the minimum wage commission in a study of the amount and causes of unemployment or lost time in the same stores and among the same employees as are the subject of study by the minimum wage commission. The method of the commission provided for securing the fullest possible information in regard to earnings as well as rates of wages. Transcripts of the pay rolls for the preceding 52 weeks for all female employees were taken, and for a large number personal data regarding age, birthplace, family and living conditions were also obtained. In addition a study was made of the processes in which women were engaged. The commission reported that its investigation showed that a considerable number of women workers were receiving wages inadequate to supply them with the necessaries of life. Almost exactly two-thirds of the brush workers for whom records were available received an average wage of less than $6 per week. A smaller proportion of corset workers, 35.5 per cent, received less than $6 a week. The commission was somewhat hampered by the defective records of employers, especially those in regard to time. Certain manufacturers made the statement that "Not only do a large number of employees work for only part time, but also that failure to work for full time is due not to lack of work in the factory but to choice on the part of the workers." An amendment to the law, requiring the 1 First Annual Report of the Minimum Wage Commission of Massachusetts for the six months ending Dec. 31, 1913. Boston, 1914. • Minimum Wage Commission Bulletin No. 1, January, 1914. Wages of Women in the Brush Factories in Massachusetts. Ibid., No. 2, January, 1914. 4 Ibid., No. 4, October, 1914. Ibid., No. 5, October, 1914. Wages of Women in the Corset Factories in Massachusetts. keeping of time books, is expected to lessen the difficulties of the commission. The conclusions of the commission upon its study of the brushmaking industry have been summarized as follows in one of its reports:1 1. The industry is a small one. It is apparently not growing in Massachusetts. According to the Thirteenth Census 8,258 persons were engaged in brush making in the United States. Of these, only 1,810 persons were employed in Massachusetts, which, however, is exceeded only by New York in number of persons employed, capital invested, and value of output. It is a business of rather small establishments, although three of the Massachusetts plants are considerably larger than most of their competitors in this country or abroad. Most of the Massachusetts workers are women. Elsewhere apparently the percentage of men is higher. New York, Ohio, Pennsylvania, New Jersey, Rhode Island, Maryland, and Illinois appear to be the chief American competitors of Massachusetts, and there is some competition from abroad, especially in low-grade brushes. Tariff protection has been somewhat reduced. The processes are rather numerous, and those in which women are employed require dexterity rather than strength. They are varied and are fully described in the bulletins referred to. Much of the work is monotonous rather than difficult. Machines are used to a rather limited extent, and machine operators require a period of from three months to a year before attaining maximum skill. For a few weeks learners represent no profit, and, in a few cases, loss. Subcontracting exists in some factories. 2. Wages are low everywhere. There is reason to suspect that this fact is a handicap to the industry. It adds to the difficulty of procuring a regular supply of efficient labor, and, in emphasizing the possibility of depending for profit upon low labor costs, lessens the incentive to the adoption of the most efficient business methods for reducing the cost of production. Such general tendencies of low wages are probably accentuated in an industry like brush making which "but recently graduated from the household and remains largely a handicraft." 3. Wages in Massachusetts are so low that a large majority of the female employees earn less than the guarded definition of a proper wage suggested by the statute. Two-thirds of the whole number of women employed earn less than $6 a week. The commission is aware that such a statement is not the whole story. To form an intelligent judgment one must know how many hours were worked to produce the earnings in question, and, in the many cases where the time is less than a full week, why no more hours were worked. It is frequently said by employers in this and other industries that rates are adequate to produce more than a mere living wage, with a suggestion that the meager earnings of the many are due to the choice of the workers themselves. But when one considers how desperately many of these young women need money, the fact that so overwhelming a majority do not earn what by any reasonable computa 1 Minimum Wage Commission Bulletin No. 3, August 15, 1914. Statement and Decree Concerning the Wages of Women in the Brush Industry in Massachusetts. tion could be called a living wage makes the explanation seem unconvincing. In a few cases the fallacy is obvious. A piece rate is fixed which permits a few exceptional workers to make fairly high earnings by the exercise of a degree of skill and application which an ordinary girl can not approach. Looked at from the point of view of the workers, the remedy in these cases is also obvious. In a much larger number of cases the difficulty is found in the fact that the worker does not or can not work the full time. Where the cause of this condition rests with the voluntary action of the girl, not superinduced by some physical or mental condition fairly chargeable to the employment, it may perhaps be disregarded in an inquiry of this character. Where, however, the part time is chargeable to the industry, either for reasons like those suggested or because under the organization of the industry work can not be supplied to the worker sufficient to keep her employed full time, it is a factor that can not be overlooked by a body charged with the duty of fixing minimum rates adequate for the purposes named in the statute. The question of short time seems to the commission, perhaps, the greatest single difficulty in connection with the wage situation in this and other Massachusetts industries. It was the subject of careful consideration by the wage board in reaching its determination, and more will be said of it in connection with the conclusions of the commission. 4. The investigation showed marked difference of wages between Massachusetts establishments. As in other industries it was found that smaller establishments frequently paid better wages than some of their larger and presumably more powerful competitors; and it was shown again that it is wholly possible for an establishment to exist and prosper in competition with others doing business under the same market conditions but enjoying the real or supposed advantage of lower wages for like processes. This is a factor of importance in determining the weight to be given to the matter of interstate competition. 5. The investigation convinced the commission that "the wages paid to a substantial number of female employees in the brush-making industry were inadequate to supply the necessary cost of living and maintain the worker in health. It therefore became its duty to establish a wage board for the industry (St. 1912, ch. 706, sec. 4). Nominations were invited from employers and employees, and six representatives of each were accepted. Three persons were named by the commission to represent the public. One of the latter, Mr. Robert G. Valentine, was designated to be chairman. The board so constituted met for organization on December 12, 1913, and began its deliberations. The commission transmitted to the wage board the information in its possession and adopted the following rules for its guidance: Rules of Procedure for the Brush Makers' Wage Board. Name. This board shall be known under the title of the brush makers' wage board. 1. Organization.-The chairman and secretary shall be appointed by the minimum wage commission. 2. Term of office.-The term of office of the brush makers' wage board shall be three years. Any representative of employers who becomes a worker at the trade shall vacate his seat. Any representative of workers who becomes an employer shall also vacate his seat. The question of fact shall in each case be determined by the commission. The commission may remove any member of the board who shall unreasonably fail to attend the meetings of the board, or who shall otherwise display unfitness for |