All workmen discharged to be paid at once in cash. Workmen leaving voluntarily to be paid in money or bank checks.

Workmen to be paid during working hours. Sheds to be heated in cold weather. Men working outside of sheds to receive 25 cents per day over the regular rate. Suitable sheds shall be provided for cutters for shelter from sun and rain.

One apprentice to be allowed to each gang, and an agreement drawn up between employer and ap prentices to have them serve three years with one firm, and that no improvers be allowed. All work

men of the granite-cutting machines to be members of the Granite Cutters National Union.

The above bill of prices and regulations to take effect March 1, 1903, and shall continue from year to year.

Should either party desire a change three months' notice shall be given previous to March 1 of any year.

Any dispute arising between employers and employés on the above agreement shall be submitted to a committee representing employers and employés, said committee to be known as the "Grievance Committee."

PROPORTIONAL EARNINGS AND PRODUCTION.

There is no doubt that the prices of the necessaries of life have advanced. It is equally true that, in a general way, the cost of all raw materials and the prices of manufactured goods have been increased. On the other hand, wages in many branches of business have been increased. Many statements have appeared in print contrasting the increase in prices with the advance in wages, but the percentages vary so materially that it is impossible to fix upon any of them as indicative of the absolute truth.

Contemporaneous with these fluctuations in prices and wages have been the organization of trusts, or industrial combinations, and the great increase in the number and membership of the trades unions. The employers wish, naturally, to raise prices and increase profits, while their employés, as naturally, desire a reduction in the hours of labor and an increase in pay. This is the mathematical part of the labor problem, and being mathematical, the solution depends upon the proper collection and arrangement of reliable statistics which will show whether labor's share has or has not kept pace with the profits of capital.

Prof. John R. Commons writes in the Review of Reviews:

"While the wage earner has gained in two ways-increase in rate of wages and increase in amount of employment-the capitalist has also gained in two ways increase in prices and increase in amount of production. If the wage earner works a larger number of days the employer gets a larger output. So that, with prices 40 per cent higher and wages 20 per cent higher, the wage earner's share of the increased production is less than his share of the smaller production. His command of comforts has increased, but the profits and rents from investments have increased still more.

The precession of prices and wages is characteristic of all periods of prosperity in all countries, but it is especially marked in the United States, where the tariff protects prices from foreign competition, while free immigration admits foreign workmen as competitors for wages. In the five years from 1898 to 1903 the imports of merchandise increased

66 per cent, while the number of immigrants increased 270 per cent. The rise in wages is checked by immigration, but the rise in prices is favored by protection."

Since the organization of the Bureau it has given particular attention to the gathering of statistics of wages and prices. By "wage" is meant the sum paid for a specified term of service, either day or hour, or the price paid for a specified quantity of work done, which is called piece work.

The first plan adopted for handling statistics of wages was to gather reports from a certain number of employés, and after dividing the sum total of the wage items by the number of persons, to present the quotient as an average wage. This figure in nearly every case was unreliable, and for reasons easily explained.

In the first place, the wages of men, women, and children were added together without discrimination; in the second place, figures for a large number of high priced working men or women were added to a similar number of quotations for lower paid employés, -the result being a high average wage. On the other hand, a very large number of low priced quotations might be added to a small number of high priced quotations, the result being a low average wage. The quotations were gathered at random, or were sent in in response to circulars, and the office could have no idea of the resulting average until after the returns had been aggregated.

Realizing the inherent defects, both in the manner of collection and presentation of wage statistics, an inquiry calling for classified weekly wages was introduced into the schedule for Annual Statistics of Manufactures. We copy the instructions given in the schedule upon this point:

Classified Weekly Wages. The object of this inquiry is to ascertain the number of persons receiving certain specified sums per week, whether paid by the day, week, or month. State the number of persons receiving under $5 per week, the number receiving $5 but under $6 per week, etc., giving adults (males and females) and young persons separately as indicated by the column headings. These figures should be given for the week (or month) during which the largest number of persons was employed. If preferred, send a copy of your payroll giving amount paid to each adult and young person during the busiest week (or month). Salaried persons should be omitted.

Another form of the classified wage plan was called "Graded" wages. In this form of presentation, wages were considered as being high, medium high, medium, medium low, and low. All these plans or methods of collection and presentation are, however, deficient in one important respect; they do not show the amount actually earned by the workingman.

In 1886, it was provided by law that the Bureau should send out each year a schedule to manufacturers, calling for information which would show the condition of the great industries of the Commonwealth. Instruction 8 in the schedule issued for this purpose reads as follows:

Total Wages. The object of this inquiry is to ascertain the amount of wages paid during the year to all those who worked by the piece, day, week, etc., and whose labor directly produced or added to the value of the articles made. The total amount paid out in wages during the year ending December 31, or for the last financial year, should be given. Salaries of agents, managers, bookkeepers, salesmen, and others of this class, should be omitted. Only the wages paid to the persons actually employed in your own mill, factory, or shop should be returned.

Although this instruction calls for wages, it is evident that the figures returned would be the earnings or the actual amount paid to the persons employed during the year. Having these actual earnings and the number of persons to whom these amounts were paid, for each year from 1885 to the present time, and having also the value of goods maạnufactured in each of the years specified, it will be seen that there is a statistical basis for the comparison of earnings and production for the entire period from 1885 to 1902.

We have prepared a series of tables relating to the important industries of the State, which show the proportional earnings of employés in comparison with production. We present the one relating to Boots and

Shoes.

Boots and Shoes.

Proportional Earnings.

(1890: Males, 31,221; Females, 11,547; Average Yearly Earnings, $513.76.)

Males Females

1890

1890

The year 1890 is taken as the basis, and related figures are given for that year and for each year to and including 1902, the number of establishments considered, it will be noted, being different for each year.

The second column in that part of the table headed "Proportional Earnings" has for a heading "Proportional Representation as Compared with 1890."

In 1890, in 474 establishments, there were 31,221 males and 11,547 females employed in the manufacture of boots and shoes. The average yearly earnings were $513.76, and in the table of proportional earnings this amount is considered as being represented by 100.

Reference to the table shows the figure 100 opposite the year 1890; opposite 1891 we find the figure 98, which indicates a falling off in that year of two points, or two per cent. In 1892 the proportion was 104, being a gain of four points, or four per cent, over 1890, and six points, or six per cent, over 1891. The figures for the succeeding years may be read in a similar manner. It will be noted that earnings were greatest

in 1892, but that since that time the average yearly earnings have not been so great as they were in 1890, the highest figure being 97 in 1893 and the lowest 90 in 1898 and in 1900.

The proportion of the sexes is shown in the other two columns of that part of the table headed "Proportional Earnings." In 1890, out of 42,768 persons employed, 73 in each one hundred were males and 27 in each one hundred, females; in 1902, 61,224 persons being represented, 68 in each one hundred were males and 32 in each one hundred, females. In other words, the males had decreased five in each one hundred of the persons employed, and the females had increased the same number. In 1890, in each one hundred employés, the males were 46 in excess of the females; in 1902, in each one hundred employés, the males were but 36 in excess, a net loss of 10 in each one hundred on the part of the males.

The second part of the table, headed Industry Product," requires some explanation. The first column, giving the years used in the comparison, the second, which states the number of establishments considered, and the fourth, fifth, and sixth columns, which present the number of males and females and those of both sexes employed in the industry, are self-explanatory.

The third column is headed Industry Product." " Industry Product." We extract from the Annual Statistics of Manufactures for 1892 an explanation of this term:

By Industry Product" is meant the actual result of the productive forces in the industry, that is, the added value created above the value of stock and materials consumed. The values presented under the designation Industry Product" are obtained by deducting from the total value of goods made in each of the specified industries the value of stock used, the difference being added value or actual product due to the industry. In the division of the proceeds of each industry, one part of this industry product is paid to the labor force in the form of wages, this being labor's share of the product. The balance constitutes a fund from which are paid freights, insurance, interest on loans (credit capital), interest on stock

(fixed or invested capital), rents, commissions, salaries, etc.; in fact, all expenses other than those for stock and wages. The remainder, if any, is the profit of the employer. The entire balance of the industry product remaining after the deduction of the amount paid in wages becomes a "Profit and Minor Expense Fund." . . . . . Of course, it will be understood that the term "Minor Expense" is relative. The expenses, some of which we have enumerated, paid out of this balance, are in themselves considerable in amount, and are only to be classed as "Minor" in comparison with the generally larger amounts expended for materials (stock) and wages."

The last column is headed, "Average Annual Industry Product per Employé," and is arrived at by dividing the total industry product for any given year by the number of persons employed. An analysis of the various points brought out by the table is deferred until the consideration of the summary, containing all the industries, is reached, for in that summary all the important points of comparison for the different industries. considered are brought together, and much more can be learned from such a general comparison than from the consideration of a single industry.

We next present a series of nine other tables showing proportional earnings and industry product, for the industries designated as Carpetings, Cotton Goods, Leather, Machines and Machinery, Metals and Metallic Goods, Paper, Woollen Goods, Worsted Goods, and for "All Industries."

Carpetings.

Proportional Earnings.

(1890: Males, 2,025; Females, 2,378; Average Yearly Earnings, $360.86.)