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FILE NAME: AT&T and other Phone Companies (ATT) DATE: 1936 Feb DOC#: ATT015 DOCUMENT DESCRIPTION: Illinois Manufacturers' Assoc Bulletin Occupational Diseases and Changes in Blower Act INDUSTRIAL REVIEW Published by the Illinois Manufacturers' Association 120 S. La Salle Street, Chicago, Illinois Vol. 9 FEBRUARY, 1936 W hole Num ber 105 Special Session of Legislature Called to Consider Legislation Relating to Occupational Diseases, Health, Comfort and Safety and Changes in Blower A ct G o v e r n o r h o r n e r has called a Third Special Session of the Illinois General Assembly which began Wednesday, February 6. This session w ill 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 provid ing for remedies in occupational dis ease situation; legislation relating to health, comfort and safety; and meas ures 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 o f these measures to members at an earlier date because the bills were not in form for submission to the Illinois Legislative Reference Bu reau at Springfield until late Tuesday evening, February 4th. A s 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 Legis lative Reference Bureau will be sent to our members upon request. These measures are the result of ex tended 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 deter mining what remedial legislation was necessary in the state>to bring about an equitable and practical system gov erning the rights, duties and liabilities of employers, employees and insurance carriers with respect to such diseases. At the time the committee was ap pointed, employers in the state were being flooded with damage suits,_most of which were predicated on silicosis, asbestosis, and a variety of real and EXHIBIT PLEASE PASS Castleman Dec - Pfulb v AT&T* fancied lung afflictions. Some of these suits were meritorious, but to a large extent they were stirred up and solic ited by ambulance chasers for unethical lawyers who, with the aid of doctors of like ilk, developed what for a time. Legislative Situation at Springfield There are now three special sessions of the Illinois General Assembly Tun ing concurrently. The first special session covers the subjects of old age p e n s i o n s , unemployment insurance, etc. The second session relates to un employment relief, and the third, which has just been called by the Gov ernor, covers the subject of occupa tional disease legislation, and several other items which are not of direct importance to industry. The status of the unemployment in surance 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 consent of the Senate to postpone con sideration of the bill. Therefore, he is in position where he can call 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 ad vanced 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 Springfield at all sessions of the legis lature by Allan T. Gordon, Director of our Legislative Bureau, and other members of our staff. Detailed infor mation regarding any measures pend ing at Springfield can be secured by communicating with our Chicago or Springfield offices. was a flourishing racket. The uneth ical 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 hasi g c ' also received the cooperation and as*J -- ? sistance of a number of the most o u tg o 5; standing legal, medical and lay a u g h_ thorities on the subject of occupational ^ ur diseases in this country. c0 ce5: Measures Carefully Studied rC ^ Careful study and consideration has g been given to occupational diseases o acts which have been enacted by vari ous states in this country and by for eign 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 pro posed act was approved by the com mittee, a copy of such measure was delivered to the representatives of la bor for their consideration. W e hoped that an agreed bill might be developed and introduced at the 1935 regular ses sion of the Illinois General Assembly. < The representatives oHabor,_ however, * introduced their own bill, which action placed us under the necessity of intro ducing our bill. Both bills were re ferred to the House Judiciary Com mittee, and by that committee in turn to a special sub-committee. The sub committee 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 de velop an agreed bill. The widely di vergent views of the two groups ren- THIS BULLETIN DOWN THE EXECUTIVE LINE 1 SC-IMA-03120 66 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. W e 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 o f the existing Occu pational Diseases Act unconstitutional, and the subsequent decision o f' 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. A s a result of these decisions hundreds of silicosis claims have been filed with the Indus trial Commission on the theory that under further court decisions such claims would be held compensable un der the existing law. No one is in po sition to predict with certainty the out come of these claims. The situation, therefore, remains chaotic. N o intelli gent person considers that such a sit uation will be permitted to continue Constitutional laws providing a logical solution can, will, and should be en acted. Unconstitutional laws should and must be eliminated. . The governor, recognizing the wide spread interest and gravity of the sit uation, in the early part o f September, 1935, arranged for a conference of rep resentatives of labor and employers under the chairmanship of Hon. Peter J. ngsten, chairman of the Illinois Industrial Commission. This confer ence 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 Compen sation Act was placed on the Illinois Statute Books in 1912. it has been cus tomary for representatives of labor and industry to undertake to agree to such amendments in said act as seemed necessary or expedient for considera tion at succeeding sessions of the leg islature. These joint conferences through the years between representa tives of labor and industry on the sub ject of proposed changes in the Workmen's Compensation Act _were ordinarily initiated^ by the Illinois In- d u s t r i a 1 Commission. Accordingly, pursuant to such custom the Occupa tional Diseases Committee of the As sociation when it had completed the first draft of a proposed hill recom mending changes in the law relating to that subject matter submitted a copy of such measure to representatives of labor for their consideration. This was done early in 1935, shortly after the Illinois General Assembly had con vened in regular session. This action 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, intro duced their own bill^ bringing all so- called occupational diseases under the Workmen's Compensation Act under what was commonly referred to as the "Wide-open" clause. There was no definition of w hat constituted an oc- PLEASE PASS cupational disease. If such a measure had been enacted into law, Illinois em ployers would have been obligated for claims for so-called occupational dis eases which were not in fact related to employment. W e would have had a recurrence of conditions which ex isted in N ew York State, where, under a law enacted there comparable to the so-called "wide-open" proposal just referred to, many N ew York employ ers were obliged to close down their plants and many others were unable to secure insurance except at prohibi tive 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 Commit tee were referred to the Judiciary Committee of the House of Represen tatives and by that committee to a sub-committee. The committee has had a large num ber of meetings. In fact the commit tee has met almost continuously since the date upon which it was called to gether by the Industrial Commission in September of last year. A s indi cated 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 Oc cupational Diseases Act unconstitu tional in effect invalidated the principal features of the Illinois Act pertaining to rules and regulations providing for "Health, Safety and Comfort" in Illi nois 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 plan that is available under all existing circumstances. The changes in the Blower Act, which are also contemplated by this series of bills, are the result of exten sive study by a group of engineers identified with representative member firms. It was the conviction of the members of that group that the pres ent 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 in tended to more clearly define the rights and liabilities of employers in connec tion 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. Com fort 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 are in sympathy with and have endorsed this program. This legislative program has also re ceived the careful consideration of the Illinois Industrial Council and our Board of Directors and has the unani mous approval of both of those groups. W e shall be glad to undertake to answer inquiries from our members re garding any features of this<program upon which they desire additional in formation. Digest of Bills The following is a brief digest of the five Bills: 1. The first Bill is for a Workmen's Occupational Diseases Act. This is a Bill covering the subject of liability of employers for injuries or deaths resulting from diseases. It pro vides 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 hi3 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 pf this BilL In con nection with the liability for damages of non-electing employers, the Bill provides that the violation by any em ployer 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_ Sec tion further provides for the period in which actions for damages must be commenced and removes the common law defenses of the employer. , Section 4 provides that any em ployer may elect to provide and pdy compensation according to the proyir sions of this Bill for disablement or' death resulting from occupational d&j eases. The Bill provides for t method of making the election, ap i further provides, that employers elecjlg ing may have the right to elect out from under the Act on October 1st, 1937, and on each October 1st for four 'years thereafter, providing, however, 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 any further elections. The employes of any employer who has elected to be bound by the com pensation 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 provisions of the Act; The Bill defines an occupational dis ease as follows: "Section 6. In this Act the term `Occupational Disease' means a dis ease arising out of and in the course of the employment. Ordinary dis eases of life to which the general public is exp osed outside o f the em ployment shall not be compensable, except where the said diseases fol low 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 nnnd upon consideration of all the circumstances, a direct causal con nection b e t w e e 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 occa sioned by the nature of the employ ment and which can be fairly traced to the employment as the proximate cause, and which does not come from a hazard to which workmen would have been equally expos.ed outside of the employment. The disease must be incidental to the character of the business and not independent of the relation of em ployer and employee. The disease need not to have been foreseen or expected but after its contraction it must appear to -have had its origin in a risk connected with the em ployment and to have flowed from that source as a rational conse quence." The Bill defines disablement as fol lows: " `Disablement' means the event of becoming disabled from earning full wages at the work in which the em ployee was engaged when last ex posed to the hazards of the occupa tional disease by the employer from whom he claims compensation, or equal wages in other suitable em ployment; and `disability' means the state of being so incapacitated." The Bill further provides that no compensation shall be payable for oc cupational diseases unless disablement occurs within one year after the last day of the last exposure to the haz ards of the disease, except in cases of ; occupational diseases caused 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 time of such last exposure, except that in the cases of silicosis and asbes- tosis, the exposure during a period of less than sixty (60) days after the ef fective date of the Act shall not be deemed a last exposure. The provisions relating to amounts of compensation, and to procedure are incorporated in the Bill in the same language, and by the same section numbers, as they are contained in the I l l i n o i s Workmen's Compensation Act. _ The Bill, if enacted, shall take effect on October 1, 1936, and shall be ad ministered by the Industrial Commis sion. Health and Safety Bill a. The second Bill is the Health and Safety Bill. This Bill vests in the Industrial Commission the power to make rea sonable rules to provide reasonable protection to the lives, health and safety of employes. The power of the Industrial Com mission 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 storing and placing of personal property to guard against personal injuries and diseases. ^c) The prevention of personal in juries and diseases by contact- with any poisonous or deleterious materials, ousts, vapors, gases or fumes. (,d) The prevention of personal in juries and diseases caused by expos ure to artificial atmospheric pressure. Kules of the Industrial Commission adopted in the manner provided in the Bill shall have the torce and effect of law. This Bill would apply to all em ployers engaged in any occupation, business or enterprise in the State, ex cept farmers and others engaged in farming, tillage of the soil, or stock raising, and to coal mining. The rules adopted by the Industrial Commission must be clear, plain and intelligible, and must be uniform and general 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 require, the sub mission of any plan, specifications, or other information concerning any pro posed installation, alteration, construc tion, 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 Indus trial 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 resolu tion 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 news paper 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 Com mission requesting notice of such hearings. _ Any interested party may submit evidence at the hearing. Upon the conclusion o f the hearing, the Industrial Commission shall enter its decision in writing and send a copy of the decision to the interested par ties 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 entry of the decision, the Industrial Comriiis- sion may correct, modify or vacate the 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 decision, whether he participated in the pro ceedings 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. T he 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 con firm 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 ter mination 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 Commission shall not take any part in . ; their enforcement. i < The Department of Labor is giveh' power to inspect places of employ-- ment affected by rules, subject to ac proviso that whenever any secret procg esses are used, the owner shall furnish^ an affidavit that he has complied withe all effective rules, which affidavit shall be accepted in lieu of inspection. The Bill provides that the Depart ment of Labor shall give proper notice 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 so-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 Compensa tion Act. _ The amendment to Section 7 is a re sult of the decision of the Supreme Court in the Moweaqua Coal Company case, 360 111. 194, and adds the follow ing language to the section: "Whenever four times the average annual earnings of the deceased em ploye as provided in paragraph (a) of this Section amounts to four thou sand dollars and not more than four thousand four hundred dollars and CHICAGO HISTORIC.' LARK STREET AT m'*: PLEASE PASS THIS BULLETIN DOWN THE EXECUTIVE LINE 3 the deceased employe left surviving him one child under the age of six teen years the amount payable shall be four thousand four hundred dol lars. _ "Whenever four times the average annual earnings of the deceased em ploye as provided in paragraph (a) of this Section amounts to four thou sand 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 hun dred dollars. "Whenever four times the average annual earnings of the deceased em ploye as provided in paragraph (a) of this Section amounts to four thou- sand dollars and not more than five thousand dollars and the deceased employe left surviving him three or more children under the age of six teen 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 con ferred on the Secretary of the Com mission. . . The amendment to Section 19 is for the purpose of taking care of the sit uation which might arise where a claimant misconceives his remedy and files his claim under the Occupational Disease A ct 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 amend ment 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 Admin istration 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, polish ing and buffing operations, repealing the present Blower Law, and con taining an emergency clause. The Bill is to remain in effect until July 1st, 1937, by which time it is con templated that the Industrial Com mission will have adopted rules cover ing 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 re quirements to replace the present anti quated Blower Law. Efficient Committee Service The Members of the Occupational Diseases Committee of the Associa tion and of the Illinois Industrial Council, which groups as indicated above represented the interests of our members in connection 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. W. E. Crocombe, American Mangan ese Steel Co. A. M. Davis, International Silica Co. J. S. Dempsey, Buda Company. F. H. Elam, American Steel Foun dries. Walter Evensen, Crane Co. Andrew 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, Fyffe & Clarke, A t torneys. J. L. Earlywine, Counsel, Illinois Steel Co. A. C. Hirth, Counsel, Owens-Illinois Glass Co. - Members--Medical Dr. J. A. Britton, Supervisor of Med ical 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 As sociated Industries, East St. Louis, 111. J. L. Walker, Vice-President, Fox River Valley Manufacturers' Assn., Aurora, 111. L. E. Roark, Peoria Manufacturers' & Merchants Assn., Peoria, 111. M. H. Ward, Alton District Manufac turers' Assn., Alton, 111. Richard W. Gass, Acting Secy., Belle ville Chamber of Commerce, Belle ville, 111. . 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, 111. R. W . Jones, W ill County Manufac turers' Assn., Joliet, 111. N. J. Ziener, Mgr., Kankakee Cham ber of Commerce, Kankakee, 111. O. M. Benson, Illinois Valley Manu facturers' Club, LaSalle, 111. E. C. Xander, Tri-City Mfrs.' Associ ation, Moline, 111. C. S. Bather, Rockford Mfrs.' & Ship pers' Assn., Rockford, 111. W. E. Long, Sterling Mfrs.' & Ship pers' Assn., Sterling, 111. G. Robert Galloway, Chamber of Commerce of Waukegan, Wauke gan, I1L, North Chicago, 111. C. L. Blatchford, National Metal Trades Association, Chicago, 111. H. D . Sayre, National Metal Trades Assn. Allan T. Gordon, Springfield, 111. 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, Walter E. Beebe, Dr. J. H. Chivers, Dr. C. O. Sappington and Mr. E. O. Jones. Messrs. David R. Clarke and John Harrington of the firm of Fyffe and Clarke, General Counsel for the Asso ciation, also participated in the work of the sub-committee as w ell as At torney Frank R. Peregrine, an author ity upon Workmen's Compensation legislation who was retained as spe cial counsel by the Occupational Dis eases Committee to assist in the draft ing of such measures. This activity on behalf of the mem bers 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 fol lowed the progress of the work that these groups have rendered a genu inely valuable service to the employers of Illinois. Sonth American Trade Noah Van Cleef, of Van Cleef Bros., 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 Commis sion has postponed a verdict in its study of passenger fares. Some ICC officials forecast that in the near fu ture railroads will begin charging as little as 2 cents a mile for day coach and 3 cents a mile for Pullman coach rides. H ow 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 Vl. - ! 1 9?. -- 1 CE UXl V * o> : Developments in Congress of Importance to Illinois Industry A LARGE variety of measures de signed to impose new taxes and restrictions upon industry have been introduced in the Federal Con gress. These include the O'Mahoney Bill requiring the licensing of all cor porations, the products of which enter interstate commerce; the Thirty Hour Week Bill; the W alsh Government Contract Bill requiring conformity with standards on wages and hours (to be based upon the requirements which were included in codes of fair competition which governed industries under the N R A ), by industries and contractors engaged even remotely on government contracts; and the neu trality legislation which would give to the President the unqualified right to declare an embargo not only on war materials, but on all commodities and products which m ight be remotely as sociated with the conduct of war. The Illinois Manufacturers' Associa tion is keeping closely in touch with federal legislation and will promptly communicate to its members any de velopments at Washington directly af fecting their interests. _ Tw o significant movements in W ash ington relate to efforts to amend the Constitution to limit the authority of the federal courts. Both of 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: T o authorize Congress to legislate concerning industrial disputes between all persons and their employes (farm ers excepted) whose prod,uclts 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. 185: Mr. Schwellenbach_ of Washington: Would permit the Con stitution to be amended by a proposal by two-thirds of both Houses of Con gress, with ratification by a majority of the people voting in each of three- fourths of the states at the next Con gressional election following submis 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 regu late agricu ltu re and i n d u s t r y throughout the United States by uni form law; to regulate the labor of per sons under 18 years of age; to fix maximum hours and minimum wages; to provide old-age, sick and unemploy ment relief; and to establish and take PLEASE PASS over any or all businesses for govern ment ownership and operation. _ Referred to the House Committee on the Judiciary, 1-8-36. HJR. 446: Mr. Ferguson 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 defense and general welfare, would be amended to confer upon Congress the power to tax and, in addition, a general power to legis late for the common defense and gen eral welfare. . Referred to House Committee on the Judiciary, 1-10-36. Jurisdiction of Courts 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 the Supreme Court of the United States in the exercise of its appellate juris diction under Article I II 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 on the Judiciary, 1-14-36. H.R. 10128: Mr. Martin of Colo rado: Providing that with the excep tion 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 pur ports to be an exercise of the tax, commerce, or monetary powers of the United States with respect to the gen eral 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, 1-13-30. _ Another measure of importance to manufacturers relates to interstate la bor compacts. Mr. Tobey of N ew 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 Hamp shire, Connecticut, Massachusetts, Rhode Island, N ew York and Penn sylvania;' 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 com pact has been 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 (on which employers, employes and tKc 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 em ployes who have been paid less than the wage fixed by a mandatory order. Provides for records concerning hours, wages, etc., of women and minors. 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 Con ference on Labor at the Palmer House. INDUSTRIAL CENSUS Illinois Manufacturers' Association Co operates with the Bureau of the Census Members of the Illinois Manufac turers' Association have been requested to cooperate in a census of business comparable to those made by the Bu-[ reau of the Census for 1929 and 1933. i The census will be taken this year and will cover business activities for' 1935. ; Enumerators will call on members, of the Illinois Manufacturers' Associa-; tion and other industrial and business concerns. A n 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 wages and salaries added to each community by business concerns operating there. In addition, information will be ob tained on the location of various types of establishment, legal form of organi zation (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 . S W ATCHMEN'S SCHOOL Well Trained Guards Prevent Factory Fires Importance of well trained watch men m the prevention of fires is em phasized by the Central W atch Service incorporated, 19 South W ells Street, in a letter to the Illinois Manufac turers' Association. During the last few years since the depression, factory fires were much less numerous than they_ were during 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 lires 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 Incorporated 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 not leave until relieved by proper party. 2. Make alt rounds on schedule, ex amine premises thoroughly, doors, windows, skylights and transoms. 3. Familiarize yourself with the plant, every room, stairways, closets, elevators, all doors and windows and their fastenings, fire doors, etc., to gether with rules governing the dis cipline of the establishment. 4. Familiarize yourself with the dif ferent lines of piping, steam, water Are You Taking Advan tage of the Special Serv ices o f t h e Illinois Manufacturers' Asso ciation The Illinois Manufacturers' Association is in a position to render a large variety of per sonal services to its members. We maintain a very large re search library and have compre hensive files on many problems of vital importance to industry, including employe r e l a t i o n s , wage rates, taxes, government business, federal, state and local, foreign trade, traffic, waterways, speakers for meetings, market ing, agricultural relations, pub lic utinties, employinent service for industrial executives _and a large variety of other subjects of importance to industry. The Association maintains a staff of twenty-five persons who are devoting their entire time to serving the interests of Illinois industry. W e 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 FACILI TIES OF YOUR ASSOCIA TION. 6 PLEASE PASS supply and sprinkler system, and the valves controlling the supply to each. 5. Familiarize yourselt with the most likely causes of fire in the plant such as spontaneous combustion in waste cans, oily overalls or rags, rub bish and dirt, hot boxes on shaiting or machines. 6. Watch for leakage from water pipes, sprinkler heads, taucets, toilets, wash stands or from a broken fitting. REPORT TO OFFICE AT ONCE. 7. On- your first round be sure to see that the plant is properly closed for the night and everything in ap parently good condition. A few em ployes in almost every factory in 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 OF ORDER REPORT 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 most important things a watchman has to learn," said Mr. Williamson of the Central Watch Serv ice Incorporated, "is the location of fire boxes and use and operation of the valves and sprinkler system. It is also important to avoid opening windows and doors which cause a rapid spread of the flames by the draft." NAVIGATION PROTECTED Successful 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 Washing ton rejected the plan of the Sanitary .District to build the single-gate con trol works on the grounds that they contained possible dangers and hin drances to vessels navigating from the river to the lake. A partial specifica tion of a new plan which, it was indi cated, would be acceptable to the gov ernment was presented. The substitute plan provides for a construction of two gates to form a lock. Objections by the I. M. A. included: "It will obstruct free navigation and so impair the use of the river as pari 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 inter ests of Chicago and the State as a navigation and shipping port. "Many of the members of the Illi nois Manufacturers' Association use the Chicago river as a means of trans portation. They include shippers of grain, piping and plumbing, salt, sugar, canned goods, lumber, general mer chandise." Manufactured gas service is avail able to more than half the population of Illinois. SMALL MANUFACTURERS As an argument against the multi tude of bills directed against indus 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 82.73 per cent of the manufacturing industries n Illinois, according to the last govern ment census employed less than fifty persons, and 87.9 per cent employed less than 100 persons. The percent ages were as follows: 1 5employes . . . .................... ....4 S .0 6 20 employes ............................. ...2 6 .0 3 21 50employes 11.3 51 100employes 82 73 5.9 101 251 500 Over 200 employes 500 employes 1,000employes 1,000employes 87.9 4.8 1.8 ........................................8 ........................................ 4 95.7 An independent survey conducted by the Illinois Manufacturers' A sso ciation in the Chicago district showed that 69.6 per cent in the Chicago dis trict 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 500; 2.5 from 501 to 1,000, and 1.8 over 1,000. Thirty-one per cent of the firms in the Chicago district had a capitaliza tion of less than $25,000; 15.2 per cent had a capitalization of $25,000 to $50,000 and 14.4 per cent were capital ized 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 corporations capitalized over $1,000, 000 embraced 8.8 percent of the manufacturers listed in the Chicago district l . The Illinois Manufacturers' A ssoi. dation also points out that in 1932; only 4,816 corporations in Illinois rep'; ported a net income amounting toi $131,959,429. During the same yea& 24,144 Illinois corporations reported no net income, and a deficit amounted ing to $820,154,704. About twenty per cent of the cor porations showing no net income were manufacturing, and manufactur ing establishments comprised approx imately 17 per cent of those reporting incomes. "GUFFEY" COAL A caution regarding use of coal pro duced under the "Guffey" _A c t. was carried to manufacturers in a rul ing from the Comptroller-General 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 use in a contract for the purchase of supplies is not re quired. The ruling was given to the Treasury Department after it had in quired whether it should reject the bid (the only one received) of a Chi cago packing company to supply the United States Narcotic Farm, Lexing ton, Ky., with butter and_ cheese. The packing company had stricken out the Guffey coal provision in its bid. THIS BULLETIN DOWN THE EXECUTIVE LINE Recent Meetings in Which the I.M. A. Participated Jan. 2.-- Meeting of directors of A s sociated Arts and Industries at Illi nois Manufacturers' Association to for mally 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 170 feet on Prairie Ave nue 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 re modeled for that purpose. _ Wm. Nel son Pelouze formerly president of the Illinois Manufacturers' Association is president of the association and sev eral of the Illinois Manufacturers' A s sociation directors serve on its board. Jan. 3-- Sub-Committee on Federal taxes. C. C. LaRue, U. S. Gypsum Company, Chairman, decided to rec ommend to directors views on policies outlined in Referendum 70 of the Chamber of Commerce, U._ 55. A. This in part expressed opposition to in creasing expenditures by governmental orders. Recommended coordinated plans for reduction of public expendi tures, balancing of the federal budget and protested against mounting taxes. Jan. 6--R. E. W antz, Chairman of the Advisory Board, addressed Rotarians 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 sav ings 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 Ad visory Board for the current year: Paul F. Beich, William Butterworth, D. A. Crawford, James D. Cunning ham, Samuel M. Hastings, E. C. Heidrich, Jr., George R. Meyercord, Sterling Morton, William Nelson Pe louze. R. E. Wantz, retiring president, automatically becomes Chairman of the Advisory Board. _ Jan. 10--Executive and Advisory Committee of the Illinois Manufac turers' Costs Association met at the Morrison Hotel, following a dinner, to discuss the future program of that or ganization. _ Jan. 13--Meeting of the Landis Award Employers Association, Union League Club, 12:30 p. m. Jan. 13--"Proper Insurance Con trol" 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. Col ville, manager of the Insurance D e PLEASE PASS partment of Montgomery Ward & Company; Roy D. Brown, manager of the Insurance Department of Swift & Company, and I. J. Wickens, manager of the Insurance Department of Utili ties Power & Light Company. Many practical insurance economies were illustrated. Jan. 15-- Executive Vice-President James L. Donnelly addressed the an nual convention of the National Bed ding 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 Chi cago Woman's Club on "Unemploy ment Insurance." 1 Jan. 17--Addresses by Sterling Mor ton 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 meet ing of the Southern Division at the Broadview Hotel, East St. Louis. Mr. Morton, who has made many addresses in industrial centers, took for his sub ject: "Planned Economy, a Challenge to Industrv." He took the position that so-called planned economy was nothing but collectivism. Fascism, So cialism, Naziism or Communism--all members of the same family. . Jan. 18--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 Univer sity, 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 cre ated dissension and class friction. January 21--Illinois Manufacturers' Association represented at meeting at the Union League Club to discuss naturalization of alien citizens in Illi nois. . 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 coopera tion between employers and employes. January 31--Meeting of Illinois In dustrial Council at offices of the Asso ciation. All day session. January 23--Sterling Morton, mem ber of the advisory board. I. M. A., in an address at Omaha. Neb., urged an organized fight byt industry and business against centralization of gov ernment. Centralization of _ govern ment, he said, would kill individual initiative, individual responsibility and individual personal liberty. Jan. 29-- Represented at Annual Meeting of the W ill County Manufac turers 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 Palmer House. Feb. 3--"Practical Presentation of Cost Information and Its U se by Management" was the subject of Technical Discussion Meeting No. 7, 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 Commit tee of the Association held at the Union League Club, beginning at 12:30 p. m., to consider governmental activities. Feb. 5--Represented at Annual Din ner of The Employers' Association of Chicago at the Palmer House. S. W ells 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 em ployers at Association headquarters to discuss revision of proposed fire pre vention ordinance and sprinkler ordi nance of Chicago. ARMOUR INSTITUTE Cooperative Course in Mechanical Engineering A number of members of the Illi nois Manufacturers' Association are! cooperating w ith th e Armour Institute of Technology in establishing a co operative course in Mechanical Engi neering which began this month. . A t least fourteen colleges have co- ' operative courses in operation. Gen. i Thos. S. Hammond, President of the . I. M._ A., is taking a special interest-^' in this 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 usual four-year engineering col lege training. ' _ The tuition for each of the five years is $240. Fees and text books will in volve 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 $100 more than the cost of tuition, fees and books. --The Illinois Gear and Machine Company, 2108 North Natchez Ave nue, Chicago, Illinois, have purchased all of the machinery and equipment of the William Ganschow Company Division of Gears and Forgings, Inc., in Chicago. THIS BULLETIN DOWN THE EXECUTIVE LINE 7 $37,388,000 Direct and Indirect Cost of Illinois Industrial Accidents in 1932 The Illinois Manufacturers' Associa tion 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 1938. Compensation payments in 1933, ex clusive of hospital and medical care (except in hernia cases disposed of by settlement contract), artificial limbs and funeral expenses, totalled $7,473, 682. 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: (I) Cost of lost time of injured em ployee-; (8) Cost of time lost by other em ployes who stop work (a) out of curiosity, (b) out of sympathy, (c) 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 e m ployee, (d) selecting, training, or breaking in a new employee, and (e) preparing State accident re ports, or attending hearings be fore industrial commissioners; (4) Cost of time spent on the case by first-aid attendant and hos pital 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: (8) Cost due to interference with production, failure to fill 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 full after his return even though the_ serv ices of the employee (who is not yet fully recovered) may for a time be worth about half of their normal value: (9) Cost due to the loss of profit on the injured employee's productiv ity, and on idle machines (10) Cost of subsequent injuries that occur in consequence of the ex citement or weakened morale due to the original accident; and (II) 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 w ell to point out that in 1932. industrial activity in Illinois declined to the lowest level in the thirteen years, 1923-1935, for which records arc available. The Division of Statistics and Research estimated that the direct and indirect costs of industrial acci dents (four times compensation paid plus compensation paid) in 1932, ex 8 PLEASE PASS clusive of hospital and medical care (except in hernia cases disposed of by settlement contract), artificial limbs and funeral costs, totalled approxi mately $37,368,000. DOUBTFUL PROPRIETY Our attention has been called to ac tivities which are being engaged in by various associations in their effort to secure memberships from manufac turers of Illinois 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 associa tion. Quite frequently, according to our information, these letters are writ ten for such employer in the office of the organization for which such mem bership is being solicited. Instances have been called to our attention where individuals identified with such organization have called up manufac turers who were prospective members and given the impression that they were speaking on behalf of the indus trial executive whose name was signed to the letter soliciting such applica tion, although in fact the industrial executive may not have had any knowledge of such supplementary tele phone solicitation. SAFETY COUNCIL ELECTION T. J. Carney, vice president of Sears, Roebuck & Co., was reelected presi dent of the Chicago safety council for the third successive year at the annual meeting at the Palmer house. New members elected to the advis ory board of the council are: F. A. Croft, vice president of the Magnus Metal Company; T. S. Hammond, president of the Illinois Manufactur ers' Association; J. L. Keeshin, presi dent of the Keeshin Transcontinental Freight Lines, Inc.; D. F. Kelly, presi dent of the Fair store, and G. C. Kimball, vice president of the Car negie-Illinois Steel Corporation. Three new members were elected to the board of directors: C. S. Craigmile, vice president of the Belden Manufacturing Company; Robert Ken yon, Jr., secretary-treasurer of Chi cago Lloyds, and R. E. Vernor, man ager of the fire prevention department of the western actuarial bureau. It will be noted that most of the new officers are from member firms of the I. M. A. WAGES AND HOURS Since the end of the National In dustrial Recovery act last May there has been no widespread tendency to cut wages, increase hours of work, or to lay off 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 the 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 pay rolls 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 ap pointed boards with almost law-mak ing power, sitting in every political sub-division in the state. There is no guarantee of any exact amount of re turn, he said, to those who are sup posed 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 pay ments and has no guarantee of the amount the government will pay or 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 help is supplied through such mediums as guaranteed employment, d i s m i s s a l compensation, group life, health and accident insurance, mutual benefit as sociations, pensions and loans to em ployes. _ The foregoing information is_ from , a recent nation-wide investigation o f 1 industrial relations policies by the Na tional 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 employment; represented by these companies totals! over 4,500,000, or 15 per cent of a0j persons gainfully employed in the in: dustries covered by the survey. LITTLE WONDER THEY MOVE "In the past 30 days one Wisconsin firm with a million dollar a year pay roll has definitely made arrangements to move out of the State," says the Wisconsin Implement Dealer. "An other firm with equally as big a pay roll has contemplated the same move. Less than a year ago a big knitting mill sought another State for its oper ations. Isn't it about time the people of Wisconsin began to ask why this exodus of payrolls? . . . The answer is as plain as the nose on every voter in the State. Those men move their factories because of the excessively high taxes and because government of ficials condone irresponsible labor strikes by_ sitting with hands folded and permitting strikers to destroy, through mob action, factory proper ties. 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 Stenographer. Key Punch Operator and File Clerk. Would like general office work. Address C. M. L., this office. THIS BULLETIN DQWN THE EXECUTIVE LINE AFFIDAVIT OF ELLEN KETTH STATE OF ILLINOIS ) )ss. COUNTY OF COOK ) Ellen Keith, being of foil 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, Illinois 60614. I have personal knowledge of the facts set forth below. 2. I am the Director of Research and Access/Chief Librarian of the Chicago Historical Museum, which maintains custody of many historical documents. I have held such position since ^ _____ . 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 of eight (8) pages each. 6. Exhibit A is a copy of the February 1936 (Vol. 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. Exhibit 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 aforementioned information is based upon my personal knowledge. .- W'* LEIGH STEVENSON O FFICIA L SEA L Notary Public. State of Illinois My C om m ission Expires ,, June 29.2016 Sworn to before me this January, 2013 m fK T signature) K r r V l (name printed) :ary Public