Document 6RjMDRvDZ8Bkk2qD8vgZG1Ex1

FILE NAME: ddZWZZdd DATE: & DOC#:ATd DOCUMENT DESCRIPTION: /ZDZ KZZ INDUSTRIAL REVIEW Publi~hed by the Illinois Manufacturers' Association 120 S. La Salle Street, Chicago, Illinois Vol. 9 FEBRUARY, 1936 Whole Number 105 Special Session 01 Legislature Called to Consider Legc"slation Relating to Occupational Diseases, Health, Comfort and Safety and Changes in Blower Act G OVERNOR HORNER has called a Third Special Session of the Illinois General Assembly which began Wednesday, February 6. This session will run concurrently with the first and second special sessions which now have been in progress for several weeks. Items to be considered'in this Third Special Session which are of impor- tance to industry relate to bills providing for remedies in occupational dis- ease situation; legislation relating to health, comfort and safety; and measures making certain changes in the Illinois Blower Act. A digest of the principal provisions of these several bills is subjoined. Copies of any or all of these measures will be sent to members upon request to our Chicago or Springfield offices. It has not been feasible for the Association to send copies of these measures to members at an earlier date because the bills were not in form for submission to the Illinois Legislative Reference Bureau at Springfield until late Tuesday evening, February 4th. As a matter of fact, it is probable that some changes will still be made by the Legislative Reference Bureau before the bills are finally submitted to the legislature. However. as indicated above. copies of the bills as submitted to the Legislative Reference Bureau will be sent to our members upon request. These measures are the result of extended consideration of this entire subject matter by the Occupational Diseases Committee of the Association under the chairmanship of O. E. Mount. This committee was appointed by the President of the Association early in 1933 to study the occupational diseases problem with a view to determining what remedial legislation was necessary in the state to bring about an equitable and practical system governing the rights, duties and liabilities of employers, employees and insurance carriers with respect to such diseases. At the time the committee was appointed. employers in the state were being flooded with damap;e suits. most of which were predicated on silicosis. asbestosis, and a variety of real and fancied lung afflictions. Some of these suits were meritorious, but to a large extent they were stirred up and soHlicited by ambulance chasers for unethical lawyers who, with the aid of doctors of like ilk, developed what for a time, Legislative S,'tuation at &1 Sprc"nglield There are now three special sessions of the Illinois General Assembly runing concurrently. The first special session covers the subjects of old age pen s ion s, unemployment insurance, etc. The second session relates to unemployment relief, and the third, which has just been called by the Governor, covers the subject of occupational disease legislation, and several other items which are not of direct importance to industry. The status of the unemployment insurance legislation remains unchanged. An unsuccessful effort was made to pass this measure in the State Senate on January '7th. Insufficient votes were secured. Senator Lee, sponsor of the bill in the Senate, secured the con-sent of the Senate to postpone consideration of the bill. Therefore. he I is in position where he can ca I the bill up at any time for reconsideration. A companion bill is on second reading in the House of Representatives. It is in position where it could be advanced at any time. The Association is carefully watching this legislation and will promptly advise its members in event any further efforts to enact the measures into law are made. The subject of occupational disease legislation is treated elsewhere in this issue. The Association is represented at Soringfield at all -sessions of the legislature by Allan T. Gordon, Director of our Legislative Bureau. and other members of our staff. Detailed information regarding any measures pending at Springfield can be secured by communicatinlr with our Chicago or Springfield offices. was a flourishing racket. The unethical lawyers and doctors, and not the employees themselves, profited from these suits. The committee has devoted its activ- ities exclusively to the development of adequate and comprehensive occupa- tional disease legislation for the state, and it has actively and conscientiously continued its efforts to this desirable end during the past year. It has had the whole-hearted cooperation of mem- ber companies of the Association, which companies have placed at the disposal of the committee the services_ ' of legal, medical, engineering and lay , .' members of their organizations. It hai;;:i ~ ~ also received the cooperation and as~~ 7' sistance of a number of standing legal, medical the most and lay oauut~~ o!;i t; I- --; ;-'" ~~orities .on4~e subject of occupationllli'.i:i: Itf ;~': Iseases In IS country. t3 0 ~ 'i: Measures Carefully Studied r:c ~ en (.') Careful study and consideration has 0 ~ i; "1 been given to occupational diseases ;::) acts which have been enacted by various states in this country and by forcign countries; and in our study of these various acts especial efforts have been made to determine what has proven satisfactory in actual operation from the standpoint of both employers and employees. As soon as the first draft of a proposed act was approved by the com- mittee, a coPy of such measure was delivered to bor for their the representatives consideration. We hoofplea~- that an agreed bill might be develope'd and introduced at the 1935 X'cgular ses- sion of the Illinois General Assembly. The representatives of labor. however, introduced their own bill. which actioll placed us under the necessity of intro- ducing our bilL Both bills were re- {erred to the House Judiciary Committee, and by that committee in turn to a special sub-committee. The subcommittee conducted many hearings_ Shortly, before the end of the regular session, the Illinois Director of Labor requested representatives of employers and labor to confer in an effort to deve10p an agreed bill. The widely di- vergent views of the two groups ren- PLEASE PASS THIS BULLETIN DOWN THE'EXECUTIVE LINE 1 EXHIBIT CasUeman Dec Pfulb v AT&T 66 SC-IMA-03120 dered agreement impossible in the limited time available. The bill finally reported to the House by the Judiciary Committee was considered basically unsound by this committee. We accordingly opposed its enactment and, fortunately for Illi- nois industry, it failed of passage. The situation with respect to the liability of employers for- occupational diseases has undergone radical change during the past year. The decision of the Supreme Court in April, 1935, holding portions of the existing Occu- pational Diseases Act unconstitutional, and the subsequent decision of' the Appellate Court in July, 1935, holding that no common law right of action exists in this state for occupational diseases, stopped the flood of damage suits against employers. As a result of these decisions hundreds of silicosis claims have been filed with the Industrial Commission on the theory that under- further court decisions such claims would be held compensable un- der the existing law. No one is in position to predict with certainty the out- come of these claims. The situation, therefore. remains chaotic. No intelligent person considers that such a situation will be permitted to continue Constitutional laws providing a logical solution can, will, and should be enacted. Unconstitutional laws should and must be eliminated. The governor, recognizing the wide- spread interest and gravity of the situation, in the early part of September, 1935, arranged for a conference of rep- resentatives of ltabor and employers under the chairmanship of Hon. Peter J. Angsten. chairman of the Illinois Industrial Commission. This conference was called by the governor for the purpose of endeavoring to develop agreed legislation providing for the prevention of, and compensation for, occupational diseases. Ever since the Workmen's Compensation Act was placl'd on the Illinois Statute Books in 1912. it has been customary for representatives of labor and industry to undertake to agree to such amendments in said act as seemed necessary or expedient for consideration at succeeding sessions of the legislature. These joint conferences through the years between representa- tives of labor and industry on the subject of proposed changes in the Workmen's Compensation Act were ordinarily initiated by the Illinois Ind us t rr iiaa I Commission. Accordingly, pursuant to such custom the Occupa- tional Diseases Committee of the Association when it had completed the first draft of a proposed bill recommending changes in the law relating to that subject matter submitted a copy of such measure to representatives of labor for their consideration. This wa.; done early in 1935. shortly after the Illinois General Assembly had con- vened in regular session. This actnion was taken with the hope that an agreed bill might be worked out and enacted at the said .regular session. The repre- sentatives of labor. however. introduced their own bill bringing all socalled occupational diseases under the Workmen's Comoens'ltion Act under what was commonly referred to as the "Wide-open" clause. There was no definition of what constituted an oc- 2 PLEASE PASS tupational disease. If such a measure had been enacted into law. Illinois employers would have been obligated for claims for so-called occupational diseases which were not in fact related to employment. We would have had a recurrence of conditions which existed in New York State, where. under a law enacted there comparable to the so-called "wide-open" proposal just referred to, many New York employ- ers were obliged to close down their plants and many others were unable to secure insurance except at prohibitive rates. The Illinois Manufacturers' Associa- tion was, therefore, obliged to intro- duce its own occupational diseases bill. Both measures, i.e.. the so-called "wide-open" bill, sponsored by organ- ized labor. and the measure sponsored by our Occupational Diseases Committee were referr-ed to the Judiciary Committee of the House of Represen- tatives and by that =ommittee to a sub-committee. The committee has had a large number of meetings. In fact the commit- tee has met almost continuously since the date upon which it was called together by the Industrial Commission in September of last year. As indicated above, the bills were not in final form for submission to the Legislative Reference Bureau until the night of Tuesday, February 4th. The decision of the Supreme Court of Illinois holding portions of the Occupational Diseases Act unconstitutional in effect invalidated the principal features of the Illinois Act pertaining to rules and regulations providing for "Health, Safety and Comfort" in Illinois industry. The proposed legisla- tion relating to that subject, which is a part of this program and a digest of which is subjOined, represents the con- clusions of the committee as the most practicable and least objectionable p~an that is available under aUll existing circumstances. The changes in the Blower Act, which are also contemplated by this series of bills, are the result of -extensive study by a group of engineers identified with representative membel firms. It was the conviction of the members of that group that the present laws relating to that subject are indefinite and involved and could not. in many instances, be conformed to in practical operation. This proposed measure relating to this subject is intended to more clearly define the rights and liabilities of employers in connection with this subject matter, pending further treatment of this subject by the Industrial Commission pursuant to the authority given to the Commission under the terms of the Health. Comfort and Safety Act. As indicated above, the various measures included in this proposed legislation are the result of extended consideration of our Occupational Diseases Committee over a period of several years. In this activity we have had the assistance of all of the other principal employing groups in Illinois, all of whom we are informed arc in sympathy with and have endorsed this prolZl"am. This legislative program has also received the careful consideration of the Illinois Industrial Council and our Board of Directors and has the unanimous approval of both of those groups. We shall be glad to undertake to answer inquiries from our members regarding any features of this program upon which they desire additional in- ~. for-mation. Digest of Bills The following is a brief digest of the five Bills: 1. The first Bill is for a Workmen':; Occupational Diseases Act. This is a Bill covering the subject of liability of employers for injuries or deaths resulting from diseases. It provides for an elective compensation lia- bility. with a .liability for damages im- posed on non-electors. Section 3 of the Bill provides for liability for damages to an employe who has sustained injury to health, or death, by reason of a disease con- tracted or sustained during the course of his employment and proximately caused by the negligence of the em- ployer, unless the employer shall have elected to pay compensation as pro- vided in Section 4 of this Bill In con- nection with the liability for damages of non-electing" employers, the Bill provides that the violation by any employer of any effective rule or rules made by the Industrial Commission pursuant to the Health and Safety Act, . or the violation by the employer of any statute of this State intended for the protection of the health of employes, shall constitute negligence. This Section further provides for the period in which actions for damages must becommenced and removes the common law defenses of the employer. , Section 4 pI"Ovides that any employer may elect to provide and ~ay compensation according to the proib-'~ ~:'" ' sions of this Bill for disablement or!:2~' _' death resulting from occupational dl:.\5::;. ~ eases. The Bill provides for t~ t;;~:' method of making the election, a~:E:i: further provides, that employers e1ecC;S 0':::": .1 ing may have the right to elect oNt c;) t; l. from under the Act on October 1st. <3~: ~1937, and on each October 1st for four :;:0 years thereafter, providing, however, r); ~ that an employer who has elected to come under the compensation provi- sions of the Act, then has elected not to be under them, and has subse- quently elected again to come under the Act, shall not have the right to anv further elections. The employes of any employer who has elected to be bound by the compen$ation provisions of the Act have the right not to be so bound. Unless an employe files notice to the contrary within thirty (30) days after the elec- tion by the employer, he shall be deemed to have accepted the compen- sation orovisions of the Act. The Bill defines an occupational disease as follows: "Section 6. In this Act the term 'Occupational Disease' means a disease arising out of and in the course of the employment. Ordinary diseases of life to which the general public is exposed outside of the em- ployment shall not be compensable. r , except where the said diseases follow as an incident of an occupational "disease as defined in this section. "A disease shall be deemed to THIS BULLETIN DOWN THE EXECUTIVE LINE arise out of the employment, only if there is apparent to the rational mmd upon consideration of all the circumstances, a direct causal connection bet wee n the conditions under which the work is performed and the occupational disease, and which can be seen to have followed as a natural incident of the work as a result of the exposure occasioned by the nature of the employment and which .can be fairly traced to the employment as the proximate cause, and which does not come irom a hazard to which workmen would have been equally expo~ed outside of the employment. The disease must be incidental to the character of the business and not independent of the relation of employer and employee. The disease need not to have been foreseen or expected but after its contraction it must appear to .have had its origin ill a risk connected with the employment and to have flowed ~rom that source as a rational consequence." The Bill defines disablement as follows: " 'Disablement' means the event of becoming disabled from earning full wages at the work in which the employee was engaged when last exposed to the hazards of the occupational disease by the employer from whom he claims compensation, or equal wages in other suitable employment; and 'disability' means the state of being so incapacitated." The Bill further provides that no compensation I'lhall be payable for occupational diseases unless disablement occurs within one year after the last day of the last exposure to the hazards of the disease, except in cases of occupational diseases <:aused by the inhalation of silica dust or asbestos dust, and in such cases within three years after the last day of the last exposure. The Bill further provides that the employer liable for compensation shall be the employer in whose employment the employe was last exposed to the hazard of the occupational disease claimed upon regardless of the length of tim~ of such last exposure, except that in the cases of silicosis and asbestosis, the exposure during a period of less than sixty (60) days after the effective date of the Act shall not be deemed a last exposure. The provisions relating to amounts ?f compensation, and to procedure are mcorporated in the Bill in the same language, and by the same section numbers, as they are contained in the I 11 i n 0 i s Workmen's Compensation Act. The Bill, if enacted, shall take effect on October 1, 1936, and shall be administered by the Industrial Commission. Health and Safety Bill 2. The second Bill is the Health and Safety Bill. This Bill vests in the Industrial' Commission the power to make reasonable rules to provide reasonable protection to the lives, health and safety of employes. The power of the Industrial Commission to make rules is limited -to the following purposes: (a) The proper 'Sanitation and ven- tilation of all places of employment to guard against personal injuries and diseases. '(b) The arrangement and guarding of machinery and the stormg and placmg of personal property to guard against personal injuries and diseases. tc) The preventlOn of personal m- junes and dl'Seases by contact- With allY pOisonous or deleterious materialS, uusts, vapors, gases or fumes. td) The prevention of personal injuries and diseases .caused by exposure to artifiCial atmospheric pressure. .Kt{uuIles of the lndustrIal CommiSSion aaopted In the manner prOVided in the Bill shall have the torce and etfect of law. .This Bill would apply to all employers engaged in any occupation, bqsmess or enterprise in ~he State, except farmers and others engaged in 1arming, tillage of the soil, or stock raising, and to coal mini!1g. The rules adopted by the Industrial Commission must be clear, plain and mtelligible, and must be umform and ge.neral in their application. The Bill provides that it shall not be construed as granting the Indus- trial Commission the power to make any rule which will reqqire. the sub- mission of any plan, specifications, or other information concerning any pro- posed installation, alteration, construction, apparatus or equipment, or in any manner regulate the hours of la- bor of any employee in the State. The Bill sets forth the procedure for the adoption of rules by the Industrial Commission. The Commission may either institute proceedings on its own initiative by a resolution, or upon petition signed by five employes or five employers in a specified industry. The Commission shall set a date for a public hearing not less than thirty days, nor more than ninety days, after the date of the passage of the resolution by the Commission, or the filing of the petition. Notice of the hearing must be given at least thirty days prior to the date .of hearing, by publication in a newspaper of general circulation and by mailing notice to any employer and to any association of employers or of employes who have filed their names and addresses with the Industrial Commission requesting . notice of such hearings. Any interested party may submit evidence at the hearing. Upon the conclusion of' the hearing, the Industrial Commission shall enter its decision in writing and send a copy of the decision to the interested parties whose names are on file with the Commission, and a certified copy of the decision shall be filed with the Secretary of State. Within thirty days after the eqtry of the deciSion, the Industrial Commission may correct, modify or vacate tlle decision, rule or rules, and any person affected by the decision may object in writing, stating the specific grounds of his objection. Any person affected by the d~~ision, whether he participated in the proceedings or not, may file a praecipe for a writ of certiorari in the Circuit or Superior Court of the County in which the subject-matter of the hear- ing is situated, for review of the rea- sonableness or lawfulness of the de- cision or rules. The Circuit or Superior Court may confirm or reverse the decision of the Commission as a whole, or may reverse and remand it as a whole, or may confirm part and reverse and remand part of the decision. An appeal from the order of the Circuit or Superior Court may be taken to the Supreme Court within forty- five days, except as to the portions of the decision which are remanded by the Circuit or Superior Court. The Industrial Commission may fix the date that rules or decisions adopted by it shall become effective, provided that no such decision, rule or rules shall become effective until ninety days after entry by the Industrial Com- mission, nor shall they be effective during the pendency of any proceeding for review or appeal, and upon termination of appeal, no decision, rule or rules shall become effective until a period of time has elapsed after the filing of the Court's Mandate equal to the period of time originally fixed by the Commission. . The Industrial Commission is re- quired to keep a full and complete rec- ord of all proceedings, and at least once a year shall publish in printed form all of the rules in full force and effect at the time of the publication. The enforcement of the rules is vested in the Department of Labor, with the proviso that the Industrial o:=: .;. : Commission shall not take any part in " their enforcement. I < ('~._ The Department of Labor is giveh' ~ .. power to inspect places of employ;-~ C ~-; ~ ment affected by rules, subject to aC t':i ~ proviso that whenever any secret proc:j5:i: lttII;- ~ esses are used, the owner shall furnis~ an affidavit that he has complied wittllii: (!I en L" all effective rules, which affidavit shall t3:: be accepted in lieu of inspection. I!;; The Bill provides that the Depart- ()_.1 ment of Labor shall give proper notice r I in regard to any violation of the Act, and any person who fails or neglects to comply with any rules adopted by the Commission after due notice is given, is guilty of a misdemeanor and subject to fine. This Bill provides for repeal of the Health, Safety and Comfort Act, to take effect July 1, 1937, and for the repeal of Section 4 of the 50-called Basement Blower law, to take effect October 1, 1936. The Bill contains an emergency clause, and is intended to take effect immediately upon its passage. 3. A Bill to amend Sections 7, 14, and 19 of the Workmen's Compensation Act. The amendment to Section 7 is a result of the decision of the Supreme Court in the Moweaqua Coal Company case, 360 Ill. 194, and adds the following language to the section: "Whenever four times the average annual earnings of the deceased employe as provided in paragraph (a) of this Section amounts to four thousand dollars and not more than four thousand four hundred dollars and PLEASE PASS THIS BULLETIN DOWN THE EXECUTIVE LINE 3 the deceased employe left surviving him one child under the age of sixteen years the amount payable shall be four thousand four hundred dol- lars. "Whenever four times the average annual earnings of the deceased employe as provided in paragraph (a) of this Section amounts to four thousand dollars and not more than four thousand seven hundred dollars and the deceased employe left surviving him two children under the age of sixteen years the amount payable shall be four thousand seven hUlldred dollars. "Whenever four times the average annual earnings of the deceased employe as provided in paragraph (a) of this Section amounts to four thousand dollars and not more than five thousand dollars and the deceased employe left surviving him three or more children under the age of sixteen years the amount payable shall be five thousand dollars." The amendment to Section 14 adds the words "or assistant secretary" in connection with certain duties conferred on the Secretary of the Com- mission. The amendment to Section 19 is for the purpose of taking care of the situation which might arise where a claimant misconceives his remedy and files his claim under the Occupational Disease Act when he should have filed under the Compensation Act, or where he files under the Compensation Act when he should have filed under the Occupational Disease Act. The amendment provides that in such event the application may be amended to assert claim for disability or death under the proper Act, and shall be deemed to have been so filed as amended on the date of the original filing, and such compensation shall be awarded as is warranted by all of the evidence. 4. A Bill to amend Section 44 of the Act in relation to the Civil Administration of the State government to authorize the Department of Labor through the Industrial Commission to administer the Health and Safety Act and the Workmen's Occupational Dis- eases Act. 5. This is a Bill to compel the us- ing of exhaust systems for removing dust and dirt from grinding, polishing and buffing operations, repealing the present Blower Law, and containing an emergency clause. The Bill is to remain in effect until July 1st, 1937, by which time it is contemplated that the Industrial Commission will have adopted rules covering the subject-matter. This is a Bill which was drawn by a Sub-Committee of the Occupational Diseases Committee of the Illinois Manufacturers' Association, and was introduced in the Legislature at the last General Session. It was drawn by engineers, and contains detailed and scientific requirements to replace the present anti- quated Blower Law. Efficient Committee Service The Members of the Occupational Diseases Committee of the Association and of the Illinois Industrial -Council, which groups as indicated above represented the interests of our members in connectioll with the prep- aration of the above measures, are: OCCUPATIONAL DISEASES O. E. Mount, Chairman, American Steel Foundries. L. K Ayres, Vice-chairman, George S. Mepham Corp. Members-General J. R. Allen, International Harvester Co. Donald Blake, Blake Monument Co. E. Bernstein, Caterpillar Tractor Co. Major R. A. Bull, Sivyer Steel Cast- ings Co. 'vV. E. Crocombe, American Mangan- ese Steel Co. A. M. Davis, International Silica Co. J. S. Dempsey, Buda Company. F. H. Elam, American Steel Foundries. Wailter Evensen, Crane Co. A!ldrew J. Percival, A. E. Staley Mfg. Co. H. C. Thornton, Ottawa Silica Co. R. E. McEwen, Western Electric Co. A. Warsaw, Wedron Silica Co. Members-Legal David R. Clarke, Fyffie & Clarke, At- torneY5. J. L. Earlywine, Counsel, Illinois Steel Co. A. C. Hirth, Counsel, Owens-Illinois Glass Co. . Members-Medical Dr. J. A. Britton, 'Supervisor of Medical Service, International Harvester Co. Dr. J. R. DeMotte, Chief Surgeon, Pullman-Standard Car Mfg. Co. Dr. A. M. Harvey, Chief Surgeon, Crane Co. Dr. J. H. Chivers, Personnel Director, Crane Co. Dr. C. O. Sappington, Consulting In- dustrial HygIenist. ILLINOIS INDUSTRIAL COUNCIL Ross Bowles, President, East Side Associated Industries, East St. Louis, Ill. J. L. Walker, Vice-President, Fox River Valley Manufacturers' Assn., Aurora, IIlIl. L. E. Roark, Peoria Manufacturers' & Merchants Assn., Peoria, Ill. M. H. Ward, Alton District Manufacturers' Assn., Alton, Ill. Richard W. Gass, Acting Secy., Belleville Chamber of Commerce, Belleville, Ill. R. I. Pierce, Mfrs.' Assn. of Chicago Heights, Chicago Heights, 111 Henry Bolz, Decatur Association of Commerce, Decatur, 111. M. H. Ward, East Side Manufacturers' Assn., Granite City, Ill. R. W. Jones, Will County Manufacturers' Assn., Joliet, Ill. N. J. Ziener, Mgr., Kankakee Cham- ber of Commerce. Kankakee. 111. O. M. Benson, Illinois Valley Manu- facturers' Club, LaSalle, IIlIl. E. C. Xander, Tri-City Mfrs.' Associ- ation. Moline, Ill. C. S. Bather, Roc-kkfford Mfrs.' & Ship- pers' Assn., Rockford, Ill. W. E. Long, Sterling Mfrs,' & Shippers' Assn., Sterling, Ill. G. Robert Galloway, Chamber of Commerce of Waukegan, Waukegan, Ill, North Chicago, Ill. C. L. Blatchford, National Metal Trades Association. Chicago, Ill. H. D. Sayre, National Metal Trades Assn. Allan T. Gordon, Springfield, Ill. SUB-COMMITTEE MEMBERS The members of the sub-committee, who, during the period of several months, carried on the negotiations and the detailed work associated with the drafting of the bills, are: O. E. Mount, Chairman; J. L. Earlywine, T. G. Essington, Wailter E. Beebe, Dr. J. H. Chivers, Dr. C. O. Sappington and Mr. E. O. Jones. Mes5rs. David R. Clarke and John Harrington of the firm of Fyffe and Clarke, ueneral Counsel for the Asso- ciation, also participated in the work of the sub-committee as well as Attorney Frank R. Peregrine, an authority upon Workmen's Compensation legislation who was retained as special counsel by the Occupational Di5eases Committee to assist in the drafting of such measures. This activity on behaH of the members of the Association has involved a very substantial expenditure of time, energy and funds. It is the conviction of all of those who have carefully followed the progress of the work that these groups have rendered a genuinely valuable service to the employers of Illinois. South American Trade Noah Van Cleef, of Van Cleef Br05., manufacturers of molded rubber prod- ucts who recently returned from an extensive trip through South Amer- ica for the purpose of extending the trade of his office, says that goods manufactured in the United States en- joy wide acceptance in South Amer- ica. In many cases North American manufacturers have found it a decided sales advantage to ship their products bearing the same labels and markings as are used in their domestic trans- actions. The average South American considers the North American carton a trade mark or guarantee of excel- lence. - Mr. Van Cleef in an article in the Chicago Credit News pointed out that a handicap to the American exporter is the discrimination in the rate of ex- change against the United States in favor of other nations. The Interstate Commerce Commission has postponed a verdict in its study of passenger fares. Some ICC officials forecast that in the near future railroads will begin charging as little as 2 cents a mile for day coach and 3 cents a mile for Pullman coach rides. How Corporation taxes fall on the investor is indicated by some pertinent data in the January issue of Investor America, published monthly by the American Federation of Investors at Chicago. ' _ 4 PLEASE PASS THIS BULLETIN DOWN THE EXECUTIVE LINE I, It , -) Developments in Congress of Importance to Illinois Industry A LARGE variety of measures designed to impose new taxes and restrictions upon industry have been introduced in the Federal Congress. These include the O'Mahoney Bill requiring the licensing of all corporations, the products of which enter interstate commerce; the Thirty Hour Week Bill; the Walsh Government Contract Bill requiring conformity with standards on wages and hours lto be based upon the requirements which were included in codes of fair competition which governed industries under the NRA), by industries and contractors engaged even remotely on government contracts; and the neutrality legislation which would ~ive to the President the unqualified right to declare an embargo not only on war materials, but on all commodities and products which might be remotely associated with the conduct of war. The Illinois Manufacturers' Association is keeping closely in touch with federal legislation and will promptly communicate to its members any developments at Washington directly af- fecting their interests. Two significant movements in Wash- ington relate to efforts to amend the Constitution to limit the authority of the federal courts. Both o these movements are designed to give our federal government a greater degree of control over industry and to deprive the states of the powers they now have to regulate purely intrastate or in- ternal questions. The specific proposals to amend the Constitution are: Proposed Constitutional Amendments SJR. 185: Mr. Logan of Kentucky: To authorize Congress to legislate concerning industrial disputes between all persons and their employes (farmers excepted) whose prod,uc/ts may move in or affect interstate or foreign commerce; and would be empowered to regulate and control the production of any agricultural, mineral, or manu'factured product that may move in or affect interstate or foreign commerce, Referred to the Senate Committee on the Judiciary, 1-9-36. SJR. 186: Mr. Schwellenbach of Washington: Would permit the Constitution to be amended by a proposal by two-thirds of both Houses of Congress, with ratification by a majority of the people voting in each of threefourths of the states at the next Congressional election following submi:>sion, or at special elections called by the President. Referred to the Senate Committee on the Judiciary, 1-9-36. HJR 440: Mr. Marcantonio of New York: Would empower Congress to regulate agriculture and i n d u s try throughout the United States by uniform law; to regulate the labor of persons under 18 years of age; to fix maximum hours and minimum wages; to provide old-age, sick and unemployment relief; and to establish and take PLEASE pAss over any or all businesses for government ownership and operation. Referred to the House Committee on the Judiciary, 1-8-36. HJR. 446: Mr. Fergusolnl of Okla- homa: The present provision in Arti- cle I, section 8, of the Constitution, which empowers Congress to lay taxes in order to pay the debts and provide for the common defe~se and general welfare. would be amended to confer upon Congress the power to tax and, in addition, a general power to legislate for the common defense and general welfare. Referred to House Committee on the Judiciary, 1-10-36. Jurisdiction of Cour~s Bills relating to the jurisdiction of the courts are: H.R. 10106: Mr. Gillette of Iowa: Providing that no act of Congress could be held unconstitutional by th!l Supreme Court of the United States in the exercise of its appellate juris- diction under Article III of the Con- stitution (the judicial power) without the concurrence 'of at least seven of the Justices of the Court in the de- cision. Referred to House Committee 011 the Judiciary, 1-14-36. H.R. 10128: Mr. Martin of Colo- rado: Providing that with the exception of the United States Supreme Court in the exercise of its original jurisdiction, no federal, state, or local court would have jurisdiction to hear or decide upon the constitutionality of any federal statute which is or purports to be an exercise of the tax, commerce, or monetary powers of the United States with respect to the general welfare, interstate commerce, tax- ation, or the issuance of money or pre- scription of the legal-tender rights thereof; nor would such courts have jurisdiction to hear or decide upon the constitutionality of any federal statute which affects or purports to affect due process, when the rights affected are not procedural in nature. Referred to House Committee on the Judiciary, 1-13-36. ' Another measure of importance to manufacturers relates to interstate la- boar compacts. Mr. Tobey of New Hampshire has introduced HJR. 321. This measure would give Congression- al consent to the labor compact which was signed on May 29, 1934, on behalf of the states of Maine, New Hampshire, Connecticut, Massachusetts, Rhode Island, New York and Pennsylvania;' and which was ratified by Massachusetts on June 30, 1934, and by New Hampshire on May 29, 1935. The compact provides that its mini- mum-wage provisions shall be in effect in the ratifying states when the compact has heen ratified by two or more states and approved by Congress. Under this compact no employer shall pay a woman, or a minor under 21 years of age, an "unfair or oppres- sive wage"; and requires that the state agency administering the minimum- wage law enacted in conformity with the compact shall have authority to investigate the wages of women and minors, to appoint wage boards (Oil which employers, employes and tllc public are to be equally represented) for the purpose of recommending min- imum fair wages for women and minors, and to fix wages by a "direc- tory order." Violation of mandatory order must carry a penalty of a fine or imprisonment, or both. The agency also shall be given authority to take assignment of wage claims from employes who have been paid less than the wage fixed by a mandatory order. Provides for records concernin~ hours, wages, etc., of women and mmors. Sets up administrative machinery for each state that ratifies compact. Passed House, 1-20-36; referred to Senate Committee on the Judiciary, 1-21-36. These labor compacts were favored by Peter T. Swanish of the Illinois Department of Labor last Tuesday, January 28, before the Catholic Conference on Labor at the Palmer House. INDUSTRIAL CENSUS Illinois Manufacturers' Association Cooperates with the Bureau of the Census Members of the Illinois Manufacturers' Association have been requested to cooperate in a census of business comparable to those made by the BU- 1 reau of the Census for 1929 and 1933. i The census will be' taken this year i and will cover business activities for' 1935. ' Enumerators will call 011 members; of the Illinois Manufacturers' Associa-' tion and other industrial and business' concerns. An announcement from the: Bureau of the Census states: "This business census will provide a complete enumeration of types and kinds of business on an establishment basis. It will furnish business men with such indispensable, basic facts as volume of business for 1935, expressed in terms of functional classes and com- parably arranged; payrolls, or the pur- chasing power in the form of waa-es and salaries added to each commumty by business concerns operating there. In addition, infonuation will be ob- tained on the location of various types , of establishment, legal form of organization (partnership. corporation, etc.). business in which engaged and type of operation. "This census will make possible the presentation of data on volume of business, expenses, personnel and pay- roll on a geographic basis (by states, cities and counties). Some additional statistics on specialized trades will also be obtained_" The death rate in Illinois is 11.7 per thousand of population. This is 3 per thousand lower than California and 1.6 per thousand lower than Florida. THIS BULLETIN DOWN THE EXECUTIVE LINE ,5 , \~-. \ 0'-':: I , .?::: --:-: '. ~ WATCHMEN'S SCHOOL Well Trained Guards Prevent Factory Fires Importance of w~ll trained ~vatch men In the prevention of fires ~s e~ phasized by the Central Watcn ServIce incorporated 19 South Wells ~treet, in a letter to the lllinois Manutac- turers' Association. During the last few years since the depression, factory fires were much less numerous than they were dunng the busy industrIal period of 1929. Fewer tactories in operation and more care exercised by employes cut down the number of fires. Nevertheless fac- tory fhlres still occur and are not only a great loss to industry but to em- ployes who are thrown out of work and to the community. The Central Watch Service lncorporated has estab- lished a school for watchmen, empha- sizing the importance of certain regu- lations among them. 1. Report for duty on time and do 110t leave until relieved by proper party. . 2. Make all rounds on schedule, ex- amine premises thoroughly, doors, windows, skylights and transoms. pla3~t, Familia every rize yourself w room, stairw3;Ys, i th the closets, elevators, all doors and wmdows and their fastenings, fire doors, etc., ~o gether with rules governing the dIS- cipline of the establishment. . . 4. Familiarize yourself WIth the different lines of piping, steam, water Are You Taking Advan- tage of the Special Serv- ices 0 f the Illinois jl1anufacturers' Asso- ciation? The Illinois Manufacturers' Association is in a position to render a large variety of personal services to its members. We maintain a very large research library and have comprehensive files on many problems of vital importance to industry. including employe reI a t ion s, wage rates, taxes, government business, federal, state and local, foreign trade, traffic, waterways, speakers for meetings, marketing, a~cultural relations, p'!blie utilities, employment serVIce for industrial executives and a large variety of other subjects of importance to. ~dustry.. . . The ASSOCIation mamtams a staff of twenty-five persons who are devoting their entire time to serving the interests of Illinois industry. We maintain a well equipped office at Springfield in charge of Allan T. Gordon, which has continuous contact with all the departments of our state government. TAKE FULL CHARGE OF THE EXTENSIVE FACILITIES OF YOUR ASSOCIA- TION. supply and sprinkler system, and the valves controlling the supply to each. 5. FamiliarIze yourselt with the most likely causes of fire in th~ pla~t such as spontaneous combustion HI waste cans, oily overalls or rags, rub- bish and dirt, hot boxes on shaltmg or machines. 6. Watch for leakage from ,,\,ater pipes, sprinkler heads, raucets, tOI~ets, wash stands or from a broken fittmg. REPOO!R{T TO OFFICE AT ONC.ll!:. 7. On your first round be sure to see that the plant is prop~r1y .closed for the night and everytbmg In apparently good condition. A f~w eIl!-ployes in almost every factory m their haste to leave, or through carelessness, sometimes leave the premises in a con- dition contrary to the rules of the es- tablishment. 8. You must not tamper with the watch-clock system, alarm boxes or any other recording devices. IF OUT 0.1" ORDER REJ:'ORT TO OFFICE AT ONCE. . 9. You should know the location of the fire buckets and extinguishers, and each line of small hose. "One of the nl0st important things a watchman has to learn," said Mr. Willliamsolnl of the Central Watch Serv- ice Incorporated, "is the location of fire boxes and use and operation of the valves and sprink,1er syste~. It .is also important to avoid openmg wmdows and doors which cause a rapid spread of the fBlames by the draft." NAVIGATION PROTECTED Suc.cessful Opposition by I. M. A. to Gate in Chicago River Successful opposition to the con- struction of a single gate at the mouth of the Chicago River and Harbor was presented by the Illinois Manufactur- ers' Association at a hearing on Jan. 7 conducted by Captain S. N. Karrick of the Corps of Engineers, United States War Department. The War Department at Was~ing ton rejected the plan of the Samtary .District to build the single-gate con- trol works on the grounds that th.ey contained possible dangers and hmdrances to vessels navigating from the river to the lake. A partial specifica- tion of a new plan which, it was indicated, would be acceptable to the government was presented. The su~stitute plan provides for a constructIOn of two SIate;; to form a lock. . Objections by the 1. M. ~. ll'l:cluded: "It will obstruct free navrgatlon al1~ so impair the use of the river lI-S part of the Illinois Waterway System. "It will seriously slow up river traf- fic, interfering with the business of our members. . "It will be detrimental to the mter- ests of Chi~go and the State as a navigation and shipping port. "Many of the members qf ~he Illi- nois Manufacturers' ASSOCIatIOn use the Chicago river as a means of trans- portation. They include shil?pers of grain, piping and plumbing, salt, sugar, canned goods, lumber, general mer- chandise." Manufactured gas service is available to more than half the population of Illinois. SMALL MANUFACTURERS As an argument against the multi- tude of bills uirected against indus- l try, both in Congress and the Illinois General Assembly, all of which would have the effect of increasing the cost of operation, the Illinois Manufac- turers' Association in a statement just issued points out that 1l2.73 per cent of the manufacturing industries n lllinois, according to the last government census employed less than fifty persons, and 87.9 per cent employed less than 100 persons. The percent- ages were as follows: 1 5 employes .................. 45.0 6 eo empllooYye5s ..................26.03 21 SsOo employes .................. 11.3 82.73 51 100 employes .................. 5.9 101 251 500 Over 200 employces 500 employces 1,000 emplo;rcs 1,000 emplo;rces 87.9 .................. 4.8 .................. 1.8 . . . . . . . . . . . . . . . . . . .8 ...................4 95.7 An independent survey conducted bl the Illinois Manufacturers' Asso- cIation in the Chicago district showed that 69.6 per cent in the Chicago district employed less than 50 persons and 81.6 per 'Cent employed less than 100 'Persons; 9.3 per cent employed from 101 to 250 persons: 4.8 from 251 to 500j 2.5 from 501 to 1,000, and 1.8 over 1,000. . Thirty-one per cent of the firms 1ll the Chicago district had a capitalization of less than $25,000: 15.2 per cent had a capitalization of $25,000 to $50,000 and 14.4 per cent were capitalized from $50,000 to $100,000. Those that were capitalized from $10,000 to $250,000 constituted 16 per cent: $250,000 to $500,000, 8.2 per cent: $500,000 to $1,000,000, 5.5 per cent, and c: corporations capitalized over $1,000,- 000 embraced 8.8 percent of the manufacturers listed in the Chicag~' district. t . _ ,,-: The Illinois Manufacturers' Ass~:,':-; ~":. _ ; ciation also points out that ,in .193~.' ~;: :':' orily 4,816 corp,?rations in Ilhn!>ls rer; 1= ~. " ported a net Income amounting t~ -:.:. ,- .~ J $131,959 429. During the same yearn 5.: ~~~ 24 144 nCe;; net illinois income, corporations and a deficit raempouonr1t?e"t:fi:'.:.~:::-:-~.: _-,; _J ing to $820,154,704-. ::< ~_ About twenty per porations showing cent of no net the corincome . '- 'J were manufacturing, and manufactur- ing establishments comprised appr?x- imately 17 per cent of those reportmg incomes. "GUFFEY" COAL A caution regarding use of coal produced under the "Guffey" Act. was carried to manufacturers in a ruling from the Comptroller-Gelleral in connection with the subject. It holds that use of such coal is required under governmental contracts "for any public work, or service," and that a provision for such ~e in a contract c for the purchase of supplies is not re- quired. The ruling was given to ~he Treasury Department after it had IDquired whether it shquld reject t~e bid (the only one receIved) of a Ch1cago packing company to supply the United States Narcotic Farm, Lexington, Ky., with butter and cheese. The packing company had stricken out the Guffey coal provision in its bid. 6 PLEASE PASS THIS BULLETIN DOWN THE EXEC'UTIVE LINE Recent Meetings in Which the I~M.A.Participated Jan. 2.-Meeting of directors of Associated Arts and Industries at Illinois Manufacturers' Association to formally accept the generous gift of the famous old Marshall Field residence on Prairie Avenue as the new home of the organization. This property has a frontage of 110 feet on Prairie Avenue and extends east 128 feet. Class rooms and offices will be established in the residence and shops and ateliers in the huge garage which is being remodeled for that purpose. Wm. Nelson Pelouze formerly president of the Illinois Manufacturers' Association is president of the association and several of the Illinois Manufacturers' Association directors serve on its board. Jan. 3-Sub-Committee on Federal taxes. C. C. LaRue, U. S. Gypsum Company, Chairman, decided to recommend to directors views on policies outlined in Referendum 70 of the Chamber of Commerce, U. S. A. This in part expressed opposition to increasing expenditures by governmental orders. Recommended coordinated plans for reduction of public expenditures, balancing of the federal budget and protested against mounting taxes. Jan. 6-R. E. Wantz, Chairman of the Advisory Board, addressed RotaTriiaans at Freeport on Social Security Act declaring it would take annually from Illinois between $180,000,000 and $200,000,000, adversely affecting the working capital of industry and savings of workers. January 7-Association successfully protested against single gate at mouth of Chicago river, as an obstruction to navigation, at hearing conducted by U. S. War department. Jan. 9-Committee on International Affairs considered United States policy of neutrality toward warring countries. Jan. 9-Sub-Committee on Cook County Taxes. E. L. Hartig, Joseph L. Ryerson & Son, Incorporated, Chairman, met to discuss Cook County Personal Property assessment rates which have increased 60 to 70 per cent on tangible property and from 20 to 22 on intangibles. Jan. 10--Board of Directors elected the following as members of the Advisory Board for the current year: Paul F. Beich, William Butterworth, D. A. Crawford. James D. Cunningham, Samuel M. Hastings, E, C. Heidrich, Jr., George R. Meyercord, Sterling Morton. William Nelson Pelouze. R. E. Wantz, retiring president, automatically becomes Chairman of the Advisory Board. Jan. 1o--Executive and Advisory Committee of the Illinois Manufacturers' Costs Association met at the Morrison Hotel, following a dinner, to discuss the future program of that organization. Jan. l3-Meeting of the Landis Award Employers Association, Uhion League Club, 12:30 p. m. Jan. 13-"Proper Insurance Control" was the subject of a Technical Discussion meeting No. 6 at Hotel Sherman, beginning at 7 p. m. G. M. Pelton of Swift & Company presided. The discussion leaders were R. E. Colvilnle, manager of the Insurance De- partment of Montgolllery Ward & Company: Roy D. Brown, manager of the Insurance Department of Swift & Company, and I. J. 'Wickens, manager of the Insurance Department of Utilities Power & Light Company. Many practical insurance e,conomies were illustrated. Jan. IS-Executive Vice-President James L. Donnelly addressed the annual convention of the National Bedding Manufacturers Association at the Palmer House on "Cooperation for Protection." He emphasized the need on the part of business men of taking a more active interest in public and legislative affairs. Jan. 16-Executive Vice-President James L. Donnelly addressed the Chicago Woman's Club on "Unemployment Insurance." . Jan. 17-Addresses by Sterling Morton of the Morton Salt Company and a member of the Advisory Board of the Illinois Manufacturers' Association and Allan T. Gordon, Director of the Legislative Bureau of the Illinois Manufacturers' Association at a meeting of the Southern Division at the Broadview Hotel, East St. Louis. Mr. Morton, who has made many addresses in industrial centers, took for his subject: "Planned Economy, a Challenge to Industrv." He took the position that so-called planned economy was nothing but collectivism, Fascism, Socialism, Naziism or Communism-all members of the same family. Jan. IS-Represented at the Annual Dinner of the Cartage Exchange of Chicago, Grand Ball Room, Palmer House. Jan. 21-Walter E. Spahr, director of Economics of New York University, following a dinner at the Hotel LaSalle by the Illinois Manufacturers' Costs Association on "Fundamentals of the Business Depression" and how a misconception of their causes misled the government in its adoption of a program for recovery which has created dissension and class friction. January 21-Illinois Manufacturers' Association represented at meeting at the Union League Club to discuss naturalization of alien citizens in Illinois. January 23-Meeting of Industrial Relations Committee of the Illinois Manufacturers' Association at the Union League Club to discuss means of bringing about a greater cooperatiiOoInl between employers and employes. January S31-Meeting of Illinois Industrial Council at offices of the Association. All day session. January 23-Sterling Morton, mem- ber of the advisory board. r. M. A., in an address at Omaha, Neb., urged an organized fight by industry and business against centralization of government. Centralization of Irovernment, he said, would kilt individual initiative, individual responsibility and individual personal liberty. Jan. 29-Represented a.t Annual Meeting of the Will County Manufacturers Association, Louis Joliet Hotel, Joliet, at a dinner beginning at 6 :30 p. m. Jan. 29-Represented at 29th An- nual Dinner of the Traffic ClUb at the PaIlmer House. Feb. 3-"Practical Presentation of Cost Information and Its Use by Management" was the subject of Technical DD~icscuussssiion Meeting NNoo..77, held at the Hotel Sherman, beginning at 7 p. m. The Discussion Leader was Warren H. Sapp, General Manager of Armour and Company and Fred J. Steffens, Assistant Comptroller of Libby, McNeill & Libby, presided. Feb. 3-Meeting of Policy Committee of the Association held at the Union League Club, beginning at 12:110 p. m., to consider governmental activities. Feb. Ss--RReepprresented at Annual Dinner of The Employers' Association of Chicago at the Palmer House. S. Wells Utley, President of The Detroit Steel Casting Company, spoke on the subject of "What of the Future?" Joseph C. Belden, a member of the Board of Directors of the Illinois Manufacturers' Association, acted as Chairman of the meeting. Feb. 6-Meeting of interested employers at Association headquarters to disc~ss revi~ion of propos~d fire prevention ordmance and sprmkler ordinance of Chicago. ARMOUR INSTITUTE Cooperative Course in Mechanical Engineering A number of members of the Illinois Manufacturers' Association are: cooperating with the Armour Institute of Technology in establishing a co- operative course in Mechanical Engi- neering which began this month. , At least fourteen colleges have co- .'. _ operative COurses in operation. Gen.~ Thos. S. Hammond, President of the-: ~. M.. A., is taking a special interest :.: In thts movement and presided at a::-: !-- meeting of forty manufacturers at a :.-' luncheon held recently at the Palmer ': House. - The plan provides a means by which energetic,. ambitious young men, with- out suffiCient funds to pay the costs of a college course, may be able to alternate between work in college and work in industrial plants, and obtain in a five-year course the equivalent of the usu.al. four-year engineering college trammg. The tuition for each of the five years is $240. Fees and text books wiil involve additional expense of about $50 per year. The minimum wage for beginning students will be $15 per week. For the working periods, aggregating twenty- six weeks, the total earnings of $390 will be $10Q more than the cost of tuition, fees and books. -The Illinois Gear and Machine Company. i3108 North Natchez Avenue, Chicago, Illinois, have purchased all of the machinery and eQuipment of the William Ganschow Company Division of Gears and Forgings, Inc., in Chicago. PLEASE PASS THIS BULLETIN DOWN THE EXECUTIVE LINE 7 $37,368,000 Direct and Indirect Cost of Illinois Industrial Accidents in 1932 The Illinois Manufacturers' Association has received from Peter T. Swanish, Division of Statistics and Research of the Illinois Department of Labor an interesting report on the cost of industrial accidents in Illinois for 1932. Compensation payments in 1932. exclusive of hospital and medical care (except in hernia cases disposed of by settlement contract), artificial limbs and funeral expenses, totalled $7,473,- 622. This, however, does not include the hidden costs to employers, exclusive of compensation and liability claims, medical and hospital cost, insurance premiums which are as follows: (1) Cost of lost time of injured em- ployee: (2) Cost of time lost by other em- ployes who stop work (a) out of curiosity, (b) out of sympathy, (Ccc) to assist injured employee, or (d) for other reasons: (3) Cost of time lost by foremen, supervisors, or other executives (a) assisting injured employee, (b) investigating the cause of the accident, (c) arranging for the injured employee's production to be continued by some other employee, (Cdd) selecting, training, or breaking in a new employee, and (e) preparing State accident reports, or attending hearings before industrial commissioners; (4) Cost of time spent on the case by' first-aid attendant and hospItal department staff, when this time is not compensated by in- surance: (5) Cost due to injury to the ma- chine, tools, or other property. or to the spoilage of material; (6) Cost due to interference with production. failure to filt orders on time. loss of bonuses, payment of forfeits, and other similar causes; (7) Cost under employee welfare and benefit systems: . (8) Cost in continuing the wages of the injured employee in fult after his return even though the services of the employee (who is not yet fully recovered) may for a time be worth about half of their normal value; (0) Cost due to the loss of profit on the injured employee's productivity. and on idle machines: (10) Cost of subsequent injuries that occur in consequence of the excitement or weakened morale due to the original accident; and (1t 1) Overhead cost-the expense of light, heat. rent. and other such items--which continues while the injured employee is a non-pro- ducer. It is well to point out that in 1932. industrial activity in Illinois declined to the lowest level in the thirteen vears. 1923-1935. for which records arc ~vailable. The Division of Statistics and Research estimated that the direct and indirect costs of industrial actidents (four times compensation paid plus compensation paid) in 1932, ex- 8 PLEASE PASS elusive of hospital and medical care (except in hernia cases disposed of by settlement contract), artificial limbs and funeral costs, totalled approximately $37,368,000. DOUBTFUL PROPRIETY Our attention has been called to activities which are being engaged in by various associations in their effort to secure memberships from mapufacturers of ItIinois which would appear to be of questionable propriety. These activities include getting from a given employer a list of firms with which such employer does business or from which he may purchase supplies or materials, etc. Such employer is then persuaded to write letters to all of such firms on his stationery soliciting their membership in a given association. Quite frequently, according to our information, these letters are written for such employer in the office of the organization for which such membership is being solicited. Instances have been called to our attention where individuals identified with such organization have called up manufacturers who were prospective members and given the impression that they were speaking on behalf of the industrial executive whose name was signed to the letter soliciting such application, although in fact the industrial executive may not have had any knowledge of such supplementary telephone solicitation. SAFETY COUNCIL ELECTION T. ]. Carney, vice president of Sears, Roehbuck & Co., was reelected president of the Chicago safety council for the third successive year at the annual meeting at the Palmer house. New members elected to the advisory board of the council are: F. A. Croft, vice president of the Mag.nus Metal Company; T. S. Hammond, president of the Illinois Manufacturers' Association: J. L. Keeshin, president of the Keeshin Transcontinental Freight Lines, Inc.: D. F. Kelly, president of the Fair store, and G. C. KimbaIll vice president of the Carnegie-Illinois Steel Corporation. Three new members were elected to the board of directors: C. S. Craigmile, vice president of the Belden Manufacturing Company; Robert Kenyon, Jr., secretary-treasurer of Chicago Lloyds, and R. E. Vernor. manager of the fire prevention department of the western actuarial bureau. It will be noted that most of thc new officers are from member firms of the IY. M. A. WAGES AND HOURS Since the end of the National Industrial Recovery act last May there has been no widespre1!.d tendency to cut wages, increase hours of work, or to layoff employes, the National In- dustrial Conference Board found in a survey of about 2,000 manufacturing plants in 25' industries. The analysis, involving more than a million workers, shows that hourly earnings and employment in October. 1935, were above those of April. the last month of the NRA, and that thce average working week was nearly two hours longer. WORKERS WILL PAY . Between $180,000,000 and $200,000,- 000 annually would be taken from the earnings of the workers and the payrolls in Illinois by the Federal Social Security Act, according to R. E. Wantz, who spoke before the Rotarians at a luncheon at Hotel Freeport. Jan. 6. The administration of the act, said Mr. Wantz, will be by politically appointed boards with almost law-making power, sitting in every political sub-division in the state. There is 110 guarantee of any exact amount of return, he said, to those who are supposed to benefit by the act, as, for instance: a man beginning to pay on the old age pension at the age of 20 and continuing to pay for 45 years without receiving one cent of benefit from it, cannot borrow on his payments and has no guarantee of the amount the government will payor whether his dollars will be worth as much on the promised date of payment as they are when he pays them in. ECONOMIC SECURITY Aid in developing economic security for American workers is being pro- vided voluntarily by many employers in all major industries. This belp is supplied through such mediums as guaranteed employment, dd ismm is ss a J compensation, group life, healtb and accident insurance. mutual benefit associations, pensions and loans to employes. The foregoing information is from:a recent nation-wide investigation of I industrial relations policies by the National Industrial Conference board. The survey covered 2,452 business es- -' tablishments in manufacturing, min- .. _. ing, transportation and communication, ;.; wholesale and retail trade, finance,:,. ;~ and public utilities. The employmert~: ::::: ,-::. . represented by these compantes totatSi T..',. _. over 4,500,000, or 15 per cent of amc;~ :',:. persons gainfully employed in the if)k: ~~ .. <, '- dustries covered by the survey. ',- , :~ ' . LITTLE WONDER THEY MOVE "In the past 30 days one Wisconsin firm with a million dollar a year payrol!l has definitely made arrangements to move out of the State," says the Wisconsin Implement Dealer. "Another firm with equally as big a payrol!l has contemplated the same move. Less than a year ago a big knitting mill sought another State for its operations. Isn't it about time the people of Wisconsin began to ask why this exodus of payrolls? . . . The answer is as plain a~ the nose on every voter in the State. Those men move their factories because of the excessively high taxes and because government of- . ficlals condone irresponsible labor strikes by sitting with hands folded and permitting strikers to destroy, through mob action, factory properties. Labor has always the right to say whether it will work or not, but no one has the right to destroy the property of another." S ITUATION WANTED-Ten years experi ence as Stenol!rapher. Key Punch Operator and File Clerk. Would like general office work. Address C. M. L. this office. THIS BULLETIN DOfVl'! THE E}fECUTIVE LINE AFFIDAVIT OF ELLEN KEITH STATE OF ILLINOIS ) )ss. COUNTY OF COOK ) Ellen Keith, being of full age and duly sworn, deposes and says as follows: 1. I am an employee of the Chicago Historical Museum, located at 1601 North Clark Street, Chicago, lillinois 60614. I have personal knowledge ofthe facts set forth below. 2. I ani the Director of Research and Access/Chief Librarian of the Chicago Historical Museum, which position since \y ) jaintains custody _y ~O\a,: of many . historical documents. I have held such 3. Included in the Museum's historical collection are various publications produced by Chicago area businesses. As part of that collection, the Museum maintains custody of a number of original issues of the Industrial Review by the Illinois Manufacturers' Association. 4. On January 16, 2013, I was contacted by Michael Jarosz, a Law Clerk from the firm Lipsitz & Ponterio, LLC. Subsequently, on January 30, 2013, he visited and made contact with me at the Chicago Historical Museum. 5. At that time, he requested photocopies of two publications that we maintain in our collection. Said photocopies are attached hereto as Exhibit A and Exhibit B, consisting ofeight (8) pages each. 6. Exhibit A is a copy of the February 1936 (Votl. 9, Whole Number 105) issue of the Industrial Review by the Illinois Manufacturers' Association. Exhibit B is a copy of the November 1936 (Vol. 9, Whole Number 110) issue of the Industrial Review by the Illinois Manufacturers' Association. 7. Exhibif A and Exhibit B are true and accurate photocopies of the original documents that are maintained by the Chicago Historical Museum, and they are free from any annotations or redactions. 8. The aforem~ntioned information is based upon my personal knowledge. 18 STE~ENSON ~~Signature) c-L LEIlOGH OFFICIAL SEAL Notary Public. State of illinOIS !. My CommiSSion Expires \ June 29. 2016 . - ~ ~ I .t:l.. '\. 'u...t..:U" 1Iw1I:-.'CC, IT I ~ \ \ i'{ (name printed) Sworn to before me this o da January, 2013