GIFT OF GIFT MAY 20 1914 oo THE MINIMUM WAGE o WITH PARTICULAR REFERENCE TO THE LEGIS- LATIVE MINIMUM WAGE UNDER THE MINNESOTA STATUTE OF 1913 By ROME G. BROWN, Minneapolis, Minn. [2nd Print] SYNOPSIS AND INDEX. Page. Scope of This Discussion 1 The Minimum Wage as an Ethical Measure 4 The Minimum Wage as an Economic Measure 8 Certain Economic Objections Stated : 10 (1) Creates Artificial Discrimination 10 (2) Destructive of Business 12 (3) Increases Prices 12 (4) Minimum Wage Tends to Become Maximum Wage 13 (5) Increases Number of Unemployed 15 Prerequisites to a Legislative Minimum Wage 16 Certain Necessary Remedies to Obviate Resulting Evils, Discussed 17 The Efficacy of Promoting Co-operation 19 Voluntary Aid by Employers 21 THE LEGISLATIVE MINIMUM WAGE. Present Minimum Wage Legislation in U. S. 25 Minimum Wage Statutes in Other Countries 27 The Minnesota Statute of 1913 30 - Practical Questions Suggested under the Minnesota Stat- ute 31 The Minnesota Statute is Unconstitutional 36 Decisions as to Employes Engaged in Public Work .... 39 Decisions as to Employes in Exceptionally Unhealthful or Hazardous Occupations 41 The New York Bakery Shop Case 43 The Oregon Case, Women in Laundries 49 The Case of the Noble State Bank v. Haskell 53 A Legislative Minimum Wage for Private Employment is Unconstitutional 57 Amendment to the State Constitution Authorizing Mini- mum Wage in Private Employment, Does Not Do Away 284677 with Constitutional Objections 62 The Minnesota Statute Provides for No Hearing for the Employer Affected 64 The Statute Makes the Order of the Commission Final Without Right of Review by the Courts 65 The Statute Delegates Legislative Power 66 The Statute is Contrary to Constitutional Prohibitions Because : (1) It Creates Discrimination Between Employers of the Same Class; (2) Between Employes of the Same Class; (3) Restricts the Liberty of Contract; and (4) Takes the Property of the Employer for the Benefit of Others 68 Conclusion 70 APPENDIX. I. The Minnesota Minimum Wage Statute of 1913 I II. Questions Propounded as to Minnesota Statute By Advisory Board V III. Provisions of Minimum Wage Statutes in other States Summarized .... VII THE MINIMUM WAGE With particular reference to the Legislative Minimum Wage under the Minnesota Statute of 1913. By ROME G. BROWN, Minneapolis, Minn. SCOPE OF THIS DISCUSSION. The enactment of a minimum wage statute in Minnesota makes necessary a present and local discussion of the minimum wage question. Such legislation necessarily affects the inter- est of all employers and of all employes, which two classes com- prise substantially the entire citizenship. Before its attempt- ed application as a legislative measure in this state, local inter- est in the question was naturally confined to those who hap- pened to interest themselves in its study as a doctrine discussed by students of ethics, economics and history. As is true in the case of most reform measures, its advocates have been most active, and, for the reason that it has been put forward as a social welfare measure, most persuasive. Whether it be, in fact, expedient, from either an economic or legal viewpoint, it is safe to say that its enactment in Minnesota, particularly in the form of the Act of 1913, was not due to any well-considered or deliberate judgment of the legislature nor of any considera- ble number of its members, and furthermore that it was not demanded by any stress of public opinion founded on prevalent conviction resulting from any general, deliberate consideration or (Study of the merits or^demerits of a legislative minimum wage. The general mass of citizens of the state first knew of the enactment, and even learned for the first time that there was a minimum wage doctrine, or at least a doctrine of a leg- islative minimum wage, when, after the 1913 session, they discovered the present statute among those which had been passed by the legislature. 2 The Minimum Wage Commission authorized by that statute has been organized, and it is proposing to establish a mini- mum wage as to certain occupations, preparatory to enforcing the compulsory features of the statute. The Commission has established an Advisory Board to inquire into and to recom- mend a minimum wage for the mercantile occupations in the cities of Minneapolis and St. Paul. The first questions with which such Advisory Board was confronted were as to the prac- tical workability of the statute, the power and authority of such Advisory Board and of the Commission, under the complex and seemingly contradictory statutory provisions, to fix a minimum wage for particular occupations, or for particular localities, or for particular classes of persons, evidently intended to be cov- ered by the statute ; also, the basis of computing such minimum wage under varying circumstances or for different classes of employes; also the enforcibility of the act. These and other questions must be answered before proceedings could begin ; and the questions propounded to the legal department of the State by that Advisory Board evidenced the difficulties which were encountered at the very outset. 1 It may be said that these questions precipitate local dis- cussion of the minimum wage in this state. The immediate question is the practicability of the present Minnesota statute. A discussion of this question, however, leads to a broader field of discussion; because the practicability of a particular mini- mum wage statute cannot be well understood without some general understanding of the subject of the minimum wage in its general phases. Such general information should be had by both classes of citizens affected, by both employers and em- ployes. It should be had, too, by the public as a whole, at least in its general aspects. The more technical phases of the ques- tion, the economic and the legal phases, should be carefully considered by those upon whom the duty devolves to enforce, so far as enforcible, the law stated in the terms of the statute. The primary object of this discussion, then, is to present the question of the legislative minimum wage as proposed by the present Minnesota statute. But in order to approach that question intelligently, it is necessary to discuss briefly the gen- 1 See Appendix II. eral question of the minimum wage, and more particularly that of the legislative minimum wage. It is not within the scope of this discussion to detail or ex- amine the various theories of writers upon economics who gen- erally stand as authority against the doctrine of a minimum wage. Their studies involve discussions of the old and to some extent repudiated doctrine of the wage-fund, the doctrine of the paramount law of supply and demand and that theoretical an- tagonism to any interference by paternal legislation with the economic laws of trade, including the relations between em- ployer and employe, denoted by the well-known economic doctrine of laissez faire. It is sufficient for the present purposes to say, that it is generally recognized that the obstructive influence of these economic doctrines to practi- cal interference by the State in the interests of social welfare, is growing less and less. Actual experience has shown that, within certain defined limits, legislative protection, theoreti- cally inconsistent with certain supposedly established economic theories, to certain classes of citizens who, by reason of their situation in life, are less able to protect themselves, is not only feasible, but has been followed by isalutary results. The dog- mas, therefore, of the economic doctrinaires are not necessarily controlling for the mere reason that the practical application of legislative protection presents conflicts with this or that theory of economic law. It must be admitted that there is a breaking down of the full force and effect once theoretically ascribed to certain stereo- typed doctrines of the economists. This fact must be recognized in any helpful discussion of the subject. Practical enlighten- ment can best come from the comparatively modern studies which have been presented as to the practicability of the mini- mum wage as a subject of legislative compulsory enactment, These modern studies of the subject have been sometimes by those who view the questions involved as purely ethical, and who assume that beneficial results will be accomplished only through voluntary co-operation induced by a higher regard for moral duty and a better appreciation of ultimate benefits, effective only through sacrifice of selfish interest in behalf of the welfare of others. Another viewpoint of discussion is that of the purely scien- tific student who assumes the establishment of a minimum wage, either by voluntary co-operation or by legislative compulsion, and who, in advance of its establishment, presents the possible advantages or disadvantages of its application to either the employer or employe, or both. Such student views the question as one more purely of economic law. Then there is a third phase of the discussion which involves not only questions of ethics and of economic law, that is, both the moral and the scientific viewpoints, but also ques- tions of constitutional law. The questions involved in this third phase of the discussion are at present the most pressing; but they cannot be intelligently presented nor understood without some consideration of the ethical viewpoint and particularly of the economic questions necessarily involved. Some consid- eration also is necessary to be given to the history of the agita- tion for the minimum wage. Therefore, before taking up the legislative minimum wage, I will call attention briefly to a consideration of the subject of the minimum wage, first from the ethical and next from the economic viewpoints. THE MINIMUM WAGE AS AN ETHICAL MEASURE. It is unnecessary to discuss the advocacy of the minimum wage made by that class of social and political antagonists to restraint from either constitutional or economic law who rep- resent modern socialist doctrines. The socialist demands as a matter of fundamental human right the equal division among all citizens of the state of an ownership or direct property in- terest, not only of all private and public property within the jurisdiction of the State, but also of all profits, revenue and proceeds therefrom. Both the theory and practice of wages as such are repudiated as a part of a prevailing fundamental system of injustice. An orthodox socialist could not, therefore, be a consistent advocate of the minimum wage. The socialist spirit of compulsory division, of disregard for economic law, and of defiance of constitutional restraint, has, however, per- vaded the advocacy of the minimum wage, in so far as it bases the absolute right to a minimum wage, computed by the full measure or tne necessities of living in comfort and in health, upon the mere fact of the existence of the wage earner, re- gardless of his efficiency, regardless of his wage-earning ability, regardless of the benefits of his labor to his employer, and re- gardless of every other consideration. Such advocacy of the minimum wage is but one phase of a socialistic attitude, de- manding concessions and even division of property and income, on the theory that the fact alone of possessing life entitles its possessor to share in all other possessions or advantages held by other living beings. In justice to Father Ryan, it should be borne in mind that while he is an extreme advocate of the minimum wage, particularly upon ethical and religious grounds, he is an active antagonist of the socialist system. 2 In the purely ethical phases of the question there is little field for contention; because this, as any question of ethics, involving the abstract question of duty, of right and wrong, of charity, of benevolence, of sacrifice for others, becomes from its ethical viewpoint more like a question of religion. It must be solved in fact by each individual or each community of in- dividuals according to the dictates of conscience. The means for accomplishing beneficial results are enlightenment and mor- al suasion, inducing so far as possible voluntary co-operation and thereby bringing promised benefits in proportion to the ex- tent of the co-operation secured. Such ethical advocacy of the minimum wage is based on an assumed right of every person to have and receive that certain amount of material goods which is sufficient to afford him a decent livelihood; that this right is a moral right, based on his intrinsic worth as a person ; and that it is a right as valid, even if of less importance, as his right to life. It is said that the laborer's right to a living wage is but the specific form of his generic right so belonging to every person. 3 With such advocates the question involved is one between the method of unrestricted bargaining as to wages and a "profes- sedly ethical standard." 4 Economic law is an abstract bogey 2 See Debate on Socialism between Morris Hillquit (affirmative) and John A. Ryan (negative) in October, 1913, and following numbers of Everybody's Magazine. 3 "A Living Wage, Its Ethical and Economic Aspects," by John A. Ryan, pub- lished by McMillan Co., New York and London, 1912, Chap. XIX, page 324. 4 "A Living Wage," page 22. 6 with which the question has no real relation, because moral forces may overcome the forces of economic law, and in any event the moral right of the laborer is paramount to the econo- mic rights of the employer, whose moral duty to his employe is gauged by the asserted moral right of the latter. "As a de- terminant of rights, economic force has no more validity or sacredness than physical force." The employer's right to any return on his investment is subordinate to the laborer's right to receive from him a living wage. 5 The living wage doctrine, then, to this class of advocates, is an ethical question and even a question of purely religious ethics; and the remedy to be thereby accomplished is to be brought about through moral suasion addressed to individuals, furthered by organized effort. "There must be an appeal to the minds and hearts of individuals and the fullest utilization of the latent power of organization and social institutions." 6 The ethical advocate, also, recognizes no practical obstacle to the establishment of a minimum wage arising from the forces of economic law. He casts aside such opposing forces as non- existent because in practice they will be found to be actual only in the minds of the abstract economists ; or, if it transpires that they are real, then any disastrous economic result should be submitted to because of the paramount nature of the moral or ethical law establishing the right to the minimum wage. Volun- tary recognition of this right and co-operation in the establish- ing of the minimum wage should be brought about by persua- sion and by organization. Compulsory submission can be only brought about indirectly by influence and example. In short, to the ethical advocate, the minimum wage can be established only to the extent that voluntary cooperation may be induced. A preliminary requisite to any legislative minimum wage would be necessary changes in the federal constitution and in the con- stitutions of the several states, and these necessary changes would be very difficult to obtain. 7 The foregoing summary of the advocacy of the establishment of a minimum wage through the general recognition of a moral 5 "A Living Wage," pages 10, 326, 261. 6 "A Living Wage," page 34, page 331. 7 "A Living Wage," page 313. Also "The Minimum Wage as a Legislative Proposal in the United States," bv Prof. Lindsay, page 52, in Annals of American Academy and Political and Social Science, July, 1913. or religious right or duty is of more than incidental interest. Its urgency of co-operation as a means of accomplishing the benefits to low-paid labor suggests a practical means of obtain- ing beneficial results through the minimum wage. It is evident, as I shall show further on, that, wherever conditions have been improved by the establishment of a minimum wage, even in con- nection with legislative enactments, the compulsory features of such enactments have not been so much directly ameliorative of the status of the laborers as they have been a moral and practical assistance in encouraging organized co-operation. It was for that reason that the first minimum wage statute adopted by any of the United States was not made compulsory upon any employer. The Massachusetts act of 1912 makes the State Wage Commission simply a board to investigate and recom- mend a minimum wage as to any occupation; and while, even then, the statute provides for notice and hearing to the employ- ers to be affected, and for review by the courts of any recom- mendation made by the Commission, it provides -no penalty. It empowers the Commission to report and to publish its recom- mendations with the names of the employers who do not submit to the recommendation made. By such statute the State be- comes an additional means of promoting co-operation, not only among employers, but between employers and employes in rais- ing the wage of the lower classes of labor to a living wage. It adds to the efforts for amelioration by purely individual ini- tiative and by privately organized co-operation, the encourage- ment and assistance of investigations and recommendations made under official authority. It naturally results in bringing in line with the employers of more humanitarian tendencies those who, from avarice, neglect or indifference, would remain inactive without some such stimulating incentive. 8 The Massa- chusetts example was followed by Nebraska in the enactment of the minimum wage statute of 1913 in that state. 9 The minimum wage by voluntary co-operation, including that of the State through non-compulsory statutes, is altogether, as it must be admitted, a logical, workable measure. Whether we agree that it is properly based upon the natural and par- 8 Massachusetts Minimum Wagre Statute of 1912, as amended in 1913. See Appendix III. 9 See Appendix III. 8 amount right of a laborer to receive, and the controlling duty of the employer to provide, in all instances a living wage, is unimportant. Its object is beneficent; it is humanitarian, ard as such its accomplishment must be recognized as desirable, so far as any concrete beneficial results are not necessarily at- tained at the expense of other resulting disadvantages of greater importance. The preservation of the voluntary element, however, is the means through which are obviated many of ihe obstacles to the practical working of a compulsory minimum wage. Under the system of voluntary co-operation, employers cannot be driven out of business; neither will the prices of their products be increased so as to deprive the recipient of a minimum wage of its benefits; neither will the minimum wage tend so much to become the maximum wage. Under a system of co-operation, the necessary adjustments, more in accordance with the natural economic law, will be worked out, and thereby artificial and unfair discrimination between competitors in the same industry will tend to be obviated. The argument for the voluntary co-operative establishment of a minimum wage, whether as an ethical or a humanitarian measure, is far from answering the objections based upon economic and constitutional prormds to the expediencv or prac- ticability of a legislative minimum wage. THE MINIMUM WAGE AS AN ECONOMIC MEASURE. There are certain rules of economics which, when formally expressed, are merely the statement of certain natural laws of industrial science and of the science of trade and commerce. Such economic laws are controlling in the same way, even if not to the same extent, as natural laws of physics are controll- ing in respect of the phenomena of nature to which they are applicable. Disregard or violation of such natural law, wheth- er it be economic or physical, tend in all instances to cause, and in many instances inevitably cause, disturbance and even dis- aster. Sometimes the disturbance is merely local or temporary, and its effects may be overcome or remedied by either natural or 9 artificial adjustments. When, therefore, a course of action is proposed which from its very nature is in conflict with natural economic laws, it is wise to proceed with caution, lest the re- sulting disturbance bring injurious effects greater than the proposed or possible benefits. The solution of any such ques- tion cannot be based solely upon the desires, necessities or the resulting benefits to any particular individual, nor, indeed, to any particular class of individuals. There is no system of governmental or industrial organization or policy which can be so perfectly organized and administered that, with all their varying talents, degrees of efficiency or of frailty, can act with equal benefit to all persons; or which even can fail to leave some individuals or some class of individuals not only without benefits, but with comparative disadvantage resulting from the system itself. The rule of measure of merit is "the greatest good to the greatest number." This is a rule not only of ethics and of economic law, but also of the law of governmental and legislative policy. Any artificial interference with the wages to be paid to labor in private employment is an interference with the natural economic law of supply and demand. It is also an interference with the natural economic law of industrial competition. This is true as to the compulsory establishment of a wage for labor, whether the fixed wage be a minimum or a maximum. A com- pulsory minimum wage, whether computed upon the basis of a sum adequate to provide a decent livelihood with reasonable comforts, or upon any other basis, has inevitably the tendency, to say the least, and, it must be admitted, in some cases it has the necessary effect, to disturb the natural conditions governed by the law of supply and demand, by the law of competition and by other economic laws. From this fact there have been urged with "reater or less reason, and by some as insuperable, certain economic objec- tions to a compulsory minimum wa^e, as presenting obstacles to its successful application in the modern industrial world. Examination of some of these objections will throw light upon the subsequent discussion with reference to the legislative mini- mum wage as applied in this country. 10 ECONOMIC OBJECTIONS STATED. 1. The first objection is, that it necessarily creates an arti- ficial discrimination in any occupation or industry to the dis- advantage of those employers subject to the fixed wage, and in favor of others who are competitors. A federal minimum wage statute would be impossible without changing our system of government and by amendment of the Federal Constitution. Such an amendment would forever do away with the well-estab- lished principle that there should be and has been reserved to the several States all the powers of self-government and of legislation touching internal affairs and business and the rela- tions between their citizens which are not properly powers of federal control and as such expressly imposed upon the federal government. So far, then, as concerns a minimum wage, the United States comprises forty-eight separate, competing sover- eign countries with widely varying conditions of employment and wage standards. The market for products of state industries, however, is not only nation-wide, but world- wide. In many industries the mar- gin of profit is so small that with the slightest disturbance of their extra-state market, the industry could not survive. If wages which are now fixed by competition and V^ the law of supply and demand were artificially raised in one locality, the competitors in other localities would control the price of com- modities and shut out of business those who>se wage-rate was artificially kept above the rate made by their competitors. For the same reason similar results within a state would fol- low upon the enforcement of a minimum wage fixed for one city or locality, or for one class of cities or localities, as against a different wage for other localities. An artificial discrimination would be created as to any particular occupation or industry against the localities with higher wage and in favor of those with a lower one. Nevertheless, the minimum wage statute generally contemplates just this sort of discrimination between different localities in the same state. The fact that the cost of living is different in different localities is not a justification for a lack of uniformity in the minimum wage. The employer 11 in the industries located in the larger urban localities, while at a disadvantage with the higher minimum wage based upon the greater local cost of living, has the advantage of better transportation and market facilities; whereas, the employer in the country, with a less minimum wage than where the cost of living is more, has the disadvantage of his less central location, poorer transportation facilities and less advantageous market. The actual cost of production does not vary with the cost of living of the employe. A state compulsory minimum wage, therefore, based up- on the cost of living necessarily results in artificial and unfair discrimination. And this is true, even if fixed wages were established for the same industry or occupation throughout the state. But the result is even more disastrous when it is proposed, as under the present statute, to establish a minimum wage as to a certain occupation in one locality without at the same time interfering in any way with the wage in the isame occupation in another locality. The discrimination resulting is all the more obnoxious to those industries in states where the margin of profit has already been cut by the establishment in practice of a higher wage rate than similar industries pay in other states. For instance, Massachusetts is near the head of the list of states in high wages. A still further raise of wages there, by com- pulsion, would create against the industries of that state a dis- crimination more serious than it would be in a state having already low wages. It would be a penalty upon that locality whose citizens by co-operation had raised the standard of its employes. The same effect would be produced upon the indus- tries, and particularly the mercantile houses, of St. Paul and Minneapolis. While in some instances the wages are below what they might be, the mercantile houses of the Twin Cities are marketing their goods at a higher per cent of wage cost than any other city of their size in the United States. Through their mail order departments they are direct competitors in the same industries with the merchants of other large cities who pay less wages. Discrimination, which is unfair and which would tend to become destructive of industry, is, therefore, a valid economic 12 objection to a compulsory minimum wage. 2. The compulsory minimum wage would also necessarily tend to, and in many instances would, drive employers out of business, by destroying profits or by turning profits into losses. This would be the result of the artificial discrimination be- tween different localities, already noted. It would also be the natural result even where there was no local discrimination. From varying conditions affecting different industries, the mar- gin of profit varies greatly. Many employers are already so near the restrictive limit of profit that they could not continue if additional expense were added by increasing wages by com- pulsion. We may view such destruction of business as econ- omically wrong, and we may view it as resulting in the taking of property for the benefit of the employe class without due process of law. The force of both these views is recognized by the advocates of the minimum wage who base the right of the employe to have from his employer at least a certain wage upon the generic right of the employe to receive, and the correspond- ing duty of the employer to furnish, at least a minimum living wage, and makes that right of the employe paramount to any right of the employer. But, they argue, if the result is to "drive any employer or any industry out of existence, the tendency should be welcomed." The employer, individual or corporate, who may be unable to survive, and whose income from his in- vestment is destroyed by enforcement of the minimum wage, is relegated to the class of undesirable citizens or of "soulless trades" whose extinction, as "social parasites," should be hastened. 10 3. Another inconsistent result, due to the inevitable work- ing of natural economic laws, is that the general enforcement of a minimum wage in any industry would necessarily result in increase in the price of the product or wares in the market. Such rise in prices would increase the necessary cost of living, which cost is to be the basis at which the minimum wage is maintained. Experience has shown that increase in price is generally greater than a proportionate increase in the expense, 10 "Minimum Wage Legislation," by John A. Ryan, Catholic World, February, 1913. Also, Annals American Academy Political and Social Science, July, 1913: "The Minimum Wage as a Legislative Proposal in the United States," by Prof. Lindsay, page 45. 13 by reason of which prices are raised. The uncertainty of application of the compulsory minimum wage has to be guarded against and on account of that hazard the rise in prices would naturally be greater than that warrant- ed at any particular time by the then arbitrary increase in expense. The resulting change in the cost of living calls for a further increase in the minimum wage and that in its turn results in a further increase in the cost of living; and so, at least to certain limits, the tendency is to establish a sort of automatic lever acting at recurring intervals constantly to- wards a rise not only in wages, but also in prices, with the rise in one direction counteracting the effects of tljje rise in the other. That this is the necessary tendency, and to some extent the inevitable result, of a compulsory minimum wage, is admitted by its advocates. They say, however, not without reason, that the menace of such an effect is not as great in practice as indi- cated by theory. The laboring class, much less that portion of it directly affected by the minimum wage, does not constitute the entire class of consumers. The effect, therefore, on prices, they say, would not be to the fullest extent claimed by those who urge fully these economic objections. The distinction thus made seems to be sound ; but in any event it has to be admitted that the resulting tendency would be to eliminate the beneficial effect upon the laborer of the minimum wage and to unsettle the basis upon which such wage is from time to time computed. A part of this same objection is, that the increased prices would, under economic laws, result in decreased demand for the product or wares in question and thereby diminish production. Diminished production in its turn is necessarily followed by diminished employment; and thus again the artificial inter- ference with the natural law of supply and demand would in this instance result in an artificial increase of the number of unemployed ; thereby decreasing, if not eliminating, the ultimate benefits to the laborer of a compulsory wage. 4. Again it is objected that the minimum wage, established by compulsion, while it might raise the wages of the lower classes of labor, would at the same time lower the higher wages paid under the present system to the higher classes of labor. 14 In other words, the minimum wage would tend to become the maximum wage. This question was much discussed during the last political campaign in connection with the Progressive party platform for a minimum wage for women, to be estab- lished by authority of the states and the federal government. President Wilson, in one of his campaign arguments, said with reference to this question : "If a minimum wage were established by law, the great majority of employers would take occasion to bring their wage scale as near as might be down to the level of the minimum ; and it would be very awkward for the working- men to resist that process successfully, because it would be dangerous to strike against the authority of the federal government." 11 The only logical remedy to obviate this and many of the ob- jections to the minimum wage would be the impossible one of establishing by law a general minimum wage scale for all classes of wage-earners. That the compulsory minimum wage would threaten existing trades union scales and the present standard of wages for all classes of labor, has been shown by the experience in Australia, where the tendency is for the established minimum wage soon to become the standard wage scale. The class of unthinking employes, as well as their voluntary protectors who are appar- ently uninformed of the economic significance of a statutory wage, overlook this objection. The skilled students of labor questions, including labor leaders of experience, agree that the warning given by President Wilson is well founded. The San Francisco Labor Council recently declared itself "opposed to the principle of establishing the rate of wages, whether for men or women, by legislation." Samuel Gompers, President of the American Federation of Labor, while favoring a living wage, opposes a legislative or compulsory minimum wage for wage earners in private employ. He says : "I recognize the danger of such a proposition. The minimum wage would become the maximum, from which we should find it necessary to depart." 12 Mr. Gompers also has stated with reference to the compulsory 11 "The Legal Minimum Wage," by James Boyle, Forum, May, 1913. 12 "The Legal Minimum Wage," by James Boyle, Forum, May, 1913. 15 minimum wage: "I fear an outcome that has not been dis- cussed, and that is, that the same law may endeavor to force men to work for the minimum wage scale, and when government compels men to work for a minimum wage, that means slavery/' 13 The objections, then, to the minimum wage are not all from the side of the employer. 5. Still another objection which involves many and varied difficulties is the fact that the compulsory minimum wage will not only throw out of employment entirely a large class of laborers dependent in whole or in part upon their earnings, but will maintain a barrier against the possible employment of all labor whose efficiency is below the standard of those entitled to the fixed wage. The employer cannot be compelled to, and he certainly will not voluntarily for any extended period, keep in his employ one whose efficiency is not up to or does not closely approach that measured by the minimum wage. Those below that standard would be gradually weeded out and after- wards kept out of employment. Under the present system those receiving a less wage than sufficient by itself to amount to a full living wage as defined, comprise generally those whose training, skill and experience are insufficient to enable them to give in return a service warranting the compensation of such wage. They comprise also those who by reason of indolence or other peculiar characteristics, inaptitude or indifference, can never reach the standard of accomplishment measuring up to the minimum wage. There are also those who, by reason of advanced years, fall below the standard required for the fixed wage. Then there are the hosts of those to whom employment in their earlier years is the main education and preparation for the power to earn, and whose employment for considerable periods at merely nominal or at comparatively low wages pro- vides for them the means, or assists them in the means, of sus- taining life while in the preparatory stages for their later work. Excluded altogether from employment by reason of the mini- mum wage, they would be compelled at their own expense of time and money to school themselves to the point of efficiency 13 E. F. McSweeney, in American Labor Legislation Review, February, 1913. 16 measured by that wage. These and other classes would be barred from any wage-earning opportunity, some of them per- manently and some of them for long periods of time ; and this deprivation of advantage would be accompanied by the burdens of preparation now shared between the employer and the em- ploye. It is true that the legislative minimum wage generally con- templates exceptions in favor of the weak, the aged, or those otherwise physically incapacitated. The scheme does not, how- ever, provide in any way for the great mass of the unemplo3 r ed which will be created and increased by its adoption. For this reason alone the results must be disastrous, at least until the same paternal government which has provided the minimum wage shall have provided for those who are thereby subjected to disadvantage and even to disaster. At the same time that the slow or inefficient or infirm worker is driven out of indus- try altogether into want and even pauperism, with the conse- quent deprivation not only to himself but to those dependent or partially dependent upon him, neither he nor those of his class can in this country ever look to a gradual betterment of their condition. The immigration of the lower class workers from Europe will continue to swell the hordes of the unem- ployed in this country. The arbitrary law of compulsory mini- mum wage, violating the law of supply and demand, will have the effect, as to every class of labor for whose benefit it is pro- posed, to decrease the demand at the same time that it multi- plies the supply. The inevitable result must be such a lack of balance and adjustment in the social and political forces of the nation that catastrophe will follow. No remedy or preven- tion for the result of the over-strain of natural forces will be found. PREREQUISITES TO A LEGISLATIVE MINIMUM WAGE, Too many advocates of the minimum wage assume that it lies within the power of the State, through its legislature, to furnish a panacea for all evils experienced under the present wage sys- tem. They and their proposed beneficiaries assume that, once 17 the Government fiat has been issued in legislative form, then immediate relief for all the lower classes of labor will come in the form of wages sufficient to maintain them in health and comfort. They do not consider, and if they do they blindly disregard, the inevitable workings of the natural law of econo- mics which from its very nature will not of necessity yield to statutory law. There are certain laws of nature, economic as well as physical, which are and will remain paramount to human, statute law. They are Nature's limitations upon the legislative power of man, and as such they are paramount law, without being subject to amendment, even more controlling than the written prohibitions of our Federal Constitution are control- ling upon the legislative power of the federal and state legisla- tures. Any state which sets up an artificial standard repugant to economic law must, if it hopes ever to establish and enforce such standard, provide in advance for the necessary readjust- ments inexorably demanded by the natural law which is in- fringed, and for the remedies of evils incident to the displace- ments resulting from natural forces. The resulting evils of the enforcement of a compulsory wage standard, due to economic laws, have just been pointed out. They suggest the protective provisions desired and measures for which, so far as the State has the power, it would be the duty of the State to provide. The army of workers, male and female, with their families dependent upon them, who suf- fer from old age or from other misfortunes to which wage earners are liable and against which they have not them- selves been able to make adequate provision, including those who by the minimum wage are relegated, perhaps forever, to the class of the unemployed, should be insured in some way by the State against the disasters of such misfortunes. Such in- surance may include (1) an adequate system of workmen's casualty compensation; (2) organized illness insurance, co- operative or obligatory to the extent of the legislative power of the State, including invalidity and old age benefits. One of the greatest needs for preliminary measures would be (3) providing for the misfortune of non-employment, through official and thoroughly organized employment ex- changes, with bureaus collecting and reporting data with refer- 18 ence to the employment needs of the different occupations and the number and locality of various classes of employes. Such organized efforts in behalf of labor have been established in England, including even insurance against unemployment made obligatory upon a large class of employes and industries. The next of the most important reforms to accompany or to precede minimum wage statutes should be (4) a comprehensive system in industrial trade education and for vocational guid- ance. These should be made not only a part of the public school system, but should be made the subject of special schools open to all present and prospective wage earners. By such means may be acquired, with less loss to the worker, that efficiency which shall measure up to the standard of the established mini- mum wage. The State has no right to bar from employment the worker of less than ordinary ability, or to deprive him of paying for his tuition by a diminution of his wages through his preparatory period, as would be done by the compulsory minimum wage law, without providing, to some degree, at least, a substitute for the advantages of which he is deprived. Incidentally, also, (5) should be the enactment and enforce- ment of proper eugenic laws, in order to diminish the perpetua- tion of defective traits, physical or moral. Next ( 6 ) should be retained, and if necessary, extended in scope, the present sys- tem, so far as proper, of protective labor laws limiting the age of children workers, and protecting not only children but also women and men as to hours of employment in dangerous or unhealthy occupations and as to sanitary and healthful con- ditions in all occupations. These are all necessary to promote efficiency and to diminish the tendency of the minimum wage law to increase the number of unemployed. 14 But of primary importance as a preliminary remedial meas- ure ( 7 ) , there must be more effective and more stringent restric- tions upon immigration. All other reforms for the advance- ment of the employe and for the care of the unemployed will be worse than futile, while the gates at Ellis Island pour into this country a constantly arriving horde of the lower class of wage earners from Europe and other foreign countries. So 14 Annals American Academy Political and Social Science, July, 1913, page 3; "The Minimum Wage as Part of the Program for Social Reform," by Henry R. Seager, Professor of Political Economy, Columbia University. 19 long as the army of the unemployed and of the incompetent is recruited through the present unrestricted immigration, the evil results, due to economic laws, of compulsory minimum wage will be increased and intensified. More than that, all attempts at remedies or readjustments, whether by the State or by organized co-operative effort, will be rendered futile. 15 When these reforms are set in motion and made effective, and only then, would it be possible to expect any substantial benefits from a compulsory legislative minimum wage. These consid- erations are entirely apart from the question of the practica- bility of any particular minimum wage statute, or of the con- stitutional power of the legislature to pass and have enforced any particular statute, or a minimum wage statute at all. THE EFFICACY OF PROMOTING CO-OPERATION. To these objections upon economic grounds above enumerated might be added many others which have been urged; but these are sufficient to show that the advisability of a compulsory minimum wage, though based upon a living wage, is not a self- evident or self-supporting fact. The questions involved are far- reaching. The objections shown by a consideration of natural economic laws are serious questions, to say the least. They must be answered satisfactorily before it is demonstrated that a compulsory minimum wage is either a practicable or wise policy. The economic objections do not apply to the same extent to a non-compulsory minimum wage, that is, one which is worked out by individual and organized co-operation, or where even under a legislative minimum wage the practical effect is only to promote voluntary co-operation, as they do to a compulsory wage in the United States. The success claimed for the minimum wage in New Zealand and Australia is not at all a conclusive answer. It has been in operation there only during times of prosperity. It must be considered an experiment until it is demonstrated that such laws can stand the stress of adversity. Neither has its success been demonstrated by the experience in Great Britain, where the 15 Annals American Academy Political and Social Science, July, 1913, page 66: "Immigration and the Minimum Wage," by Paul U. Kellogg, Editor of The Survey. 20 minimum wage has been applied only to a few sweated indus- tries and also to workers in mines. The British expert, Mr. Ernest Aves, after a thorough investigation in Australasia, re- ported to his government as follows : "The evidence does not seem to justify the conclusion that it would be advantageous to make the recommenda- tions of any special Boards that may be constituted in this country legally binding, or that if this power were granted it could, with regard to wages, be effectively exercised." 16 How much more difficult, then, would it be in this country, where the statutes of its legislatures are not at the same time the fundamental constitutional law. The question before the British Parliament as to a minimum wage statute was alone a question of policy or expediency. In this country the same question is involved and always at the same time the question of consistency with our system of government, expressly lim- iting legislative powers of the states or of the nation as against infringements of the right of contract, of personal liberty, and of the preservation of property rights. Another reason, as stated by Mr. Aves, for the inapplicability of the experiment, as applied in New Zealand or in Australia, to a country like Great Britain or the United States, is the fact that there only a comparatively small number of workers have been or were intended to be affected by the minimum wage. So small is their number, he says, that it is "as though the whole machinery of propaganda and of the government were concentrated on a city somewhat smaller than Birmingham." 17 Mr. Aves says, too, referring to results in New Zealand and Australia, that under the minimum wage law men find great difficulty in retaining situations when they pass middle age; and it becomes harder for the slow or inefficient worker to get a job, as the employers will not pay them the legal wage. Re- ferring to the system in Victoria, the Massachusetts Commis- sion on Minimum Wage Boards says that : "These special boards, although authorized to secure a 'living wage,' in practice have served rather to formulate common rules for a trade, to bring employes and employ- 16 "The Legal Minimum Wage," by James Boyle, Forum, May, 1913. 17 "The Legal Minimum Wage," by James Boyle, Forum, May, 1913. 21 ers into co-operative rules and to provide suitable ma- chinery for the readjustment of wages and other matters to changing economic conditions." 18 The system as so administered is not considered antagonistic by either the propertied interests or the employer. Thus far, therefore, so far as the practical application of the compulsory minimum wage is concerned, any practical benefi- cial effects have been, not through the enforcement of its com- pulsory features, but by reason of the official promotion of co- operation between employers in raising the standard of wages. VOLUNTARY AID BY EMPLOYERS. In connection with the subject of minimum wage by volun- tary co-operation, and as preliminary to a discussion directly addressed to the legislative minimum wage, let us consider the present attitude of employers, and particularly those who would be first affected in Minnesota, with reference to benefits, by means of increased wages and in other ways, to their em- ployes. The first proceeding of the Minnesota Commission to estab- lish a minimum wage was taken with reference to the employes in the mercantile houses, particularly the department stores, of the two cities, Minneapolis and St. Paul. The nature of the retail mercantile business requires classes of labor varying most widely in the demands for ability. Organization of such a business necessitates the employment on the one hand of high- salaried experts from the managing head to the sub-managers and overseers, and on the other hand of a class of help of whom little or no experience or preparation is required, together with all the intermediate classes. On account of the low standard of proficiency required in the primary departments, the positions are sought by minors, particularly young girls, who, forsaking the advantages of the public free school system, seek to become 18 See Report Massachusetts Commission on Minimum Wage Boards, January, 1912, pages 14-15; "The Principle of the Minimum Wage," by A. C. Pijou, Nine- teenth Century, March, 1913; "Minimum Wage and Its Consequences," by Sidney Brooks, The Living Age, May 11, 1912; "The Economic Theory of a Legal Minimum Wage," by Sidney Webb, the Journal of Political Economy, December, 1912; "Massachusetts and the Minimum Wage," by H. LaRue Brown, Chairman of Massachusetts Minimum Wage Commission, Annals Academy Political and Social Science, July, 1913, page 13, 16, 17. 22 in some measure an asset instead of a charge upon their parents at home. Some of them would be unable to earn or to receive a minimum wage based even upon a mere living wage. At the lower wage, however, they are able to help sustain themselves and at the same time, by actual training, to add to their effi- ciency and their ability later to earn and to receive higher wages. Among the regular and more experienced employes, generally women, who attend to the retail sales, opportunities for advancement in position and in wages are always open. The more attentive and serious advance, while the positions of the careless and indifferent ones remain at a standstill unless they are compelled to drop out altogether. Primarily it is the law of supply and demand which governs not only the obtain- ing, but also the retention of their positions, including the wages which they receive. Under the present system it gen- erally depends upon the girl herself whether she advances in proficiency and in wage-earning capacity. In most instances her efforts for advancement are promoted and encouraged by the assistance of her employer, who recognizes the fact that it is for his interest to raise in his establishment the standard of efficiency, to promote the health, happiness and well-being of his employes, and to raise them as fast as possible, not only to the standard of a minimum living wage, but as much further as possible. It is not true as to the mercantile establishments of Minne- sota, and particularly of the Twin Cities, that there is generally any inconsiderate or illiberal treatment of the lower-paid classes of employes. None of the retail merchants of the Twin Cities are opposed to a minimum wage as such. Neither are they opposed to any workable, practicable method, whether compul- sory or otherwise, for raising the standard of wages, even by a legislative minimum wage, if only they may be assured that it will work out as a practical benefit to their employes and at the same time not create insurmountable obstacles to the continuance of their business enterprises. They stand without exception for the promotion of the health, happiness, morals, comfortable living and general prosperity of their employes. When, however, they are asked to submit to a proposed recom- mendation of a statutory wage commission that they, or certain 23 of them in this particular locality, shall pay to each and all their employes without exception not less than an arbitrarily fixed sum, they naturally inquire, whether, under the workings of the statute in question, they are to be singled out as against competitors in the same line of business, or are to be affected in equal degree so that artificial barriers will not be created against their otherwise free competition. In other words, they join in the very reasonable inquiry: Is the statute, to which they are asked to submit, a workable or enforcible law? The answers to such inquiries will be suggested later in this discussion; but right here let me emphasize the fact of the good faith of such employers in hesitating to co-operate at once in the absence of satisfactory answers to such inquiries. The retail merchants of no locality have done more to demon- strate a spirit of co-operation in the welfare of their employes than have the merchants of the Twin Cities. It is not uncom- mon that in a department store a well-organized school of in- struction is maintained, not only free of expense to the employe, but with the privilege of attendance upon time paid by the employer. To these, in many instances, is added the feature of special lectures by experts in the different branches of the business. Then there are sanitary and well-fitted rest rooms where the girls may obtain temporary refuge and rest from the exactions and turmoil of their daily work. This is only a part of the benefit from well-organized welfare departments operated under competent supervision and through which close personal contact is maintained with the employe, not only in connection with her work, but outside, and even extending to her domestic life. A common source of help is the maintenance by the employer of a mutual benefit plan, by which the employe receives aid in times of sickness; death benefits are also included. Beside contributions by the employes, the employer often adds to the benefits by voluntary contributions. The higher class of help who are more able to take advantage of such opportunities are, by many employers, allowed to purchase an interest in the business, paying on time. Encouragement to thrift is also given to the lower paid employes through deposit departments, where savings deposited draw the full legal rate of interest. 24 In some instances the employer has further encouraged sav- ings by starting an employe's savings accounts out of his own funds. One Minneapolis mercantile house has established in the heart of the city a lodging house, where otherwise homeless girls may have for extended periods of time a home with all reasonable comforts and at only a nominal expense indeed, at an expense much less than the actual cost to the employer. No single enterprise could be more conducive to the preserva- tion of the morals, health and comfort of the s defined in this act and determined in an order of the commission ; and it shall be unlawful for any em- ployer to employ any worker at less than said living or mini- mum wage. Sec. 13. It shall likewise be unlawful for any employer to discharge or in any manner discriminate against any employe because such employe has testified, or is about to testify, or be- cause such employer believes that said employe is about to testi- fy, in any investigation or proceeding relative to the enforce- IV ment of this act. Sec. 14. Any worker who receives less than the minimum wage ordered by the commission shall be entitled to recover in civil action the full amount due as measured by said order of the commission, together with costs and attorney's fees to be fixed by the court, notwithstanding any agreement to work for a lesser wage. Sec. 15. The commission shall enforce the provisions of this act, and determine all questions arising thereunder, except as otherwise herein provided. Sec. 16. The commission shall biennially make a report of its work to the governor and the state legislature, and such reports shall be printed and distributed as in the case of other execu- tive documents. Sec. 17. The members of the commission shall be reimbursed for traveling and other necessary expenses incurred in the per- formance of their duties on the commission. The woman mem- ber shall receive a salary of eighteen hundred dollars annually for her work as secretary. All claims of the commission for expenses necessarily incurred in the administration of this act, but not exceeding the annual appropriation hereinafter provid- ed, shall be presented to the state auditor for payment by war- rant upon the state treasurer. Sec. 18. There is appropriated out of any money in the state treasury not otherwise appropriated for the fiscal year ending July 31, 1914, the sum of five thousand dollars (f 5,000.00), and for the fiscal year ending July 31, 1915, the sum of five thousand dollars (f 5,000.00). Sec. 19. Any employer violating any of the provisions of this act shall be deemed guilty of a misdemeanor and upon convic- tion thereof shall be punished for each offense by a fine of not less than ten nor more than fifty dollars or by imprisonment for not less than ten nor more than sixty days. Sec. 20. Throughout this act the following words and phrases as used herein shall be considered to have the following mean- ings respectively, unless the context clearly indicates a differ- ent meaning in the connection used : (1) The terms "living wages" or "living" wages" shall mean wages sufficient to main the worker in health and supply him with the necessary comforts and conditions of reasonable life; and where the words "minimum wage" or "minimum wages" are used in this act, the same shall be deemed to have the same meaning as "living wage" or "living wages." (2) The terms "rate" or "rates" shall mean rate or rates of wages. (3) The term "commission" shall mean the minimum wage commission. (4) The term "woman" shall mean a person of the female sex eighteen years of age or over. (5) The term "minor" shall mean a male person under the age of twenty-one years, or a female person under the age of eighteen years. (6) The terms "learner" and "apprentice" may mean either a woman or a minor. (7) The terms "worker" or "employe" may mean a woman, a minor, a learner, or an apprentice, who is employed for wages. (8) The term "occupation" shall mean any business, indus- try, trade, or branch of a trade in which woman or minors are employed. Sec. 20. This act shall take effect and be in force from and after its passage. Approved April 26, 1913. II. RESOLUTION OF MINNESOTA ADVISORY BOARD REQUESTING AN- SWERS TO CERTAIN QUESTIONS. Whereas, it is not entirely clear what powers and duties of the Commission or ourselves as an advisory board have, or by what methods we shall proceed, in the matter of fixing a living wage, and it is advisable in order that time may be saved and we may do our work speedily and to the best advantage that we be advised upon those matters at once; Now, therefore, be it resolved that we request the Commis- sion to submit the following questions to the Attorney Gen- eral for his answer in writing so that we may have them before us for our guidance in our work. 1. Must not the Commission fix a minimum wage in the "Occupation" for the entire state at one time? In other words, can the Commission investigate the minimum wage in any "Occupation" and act upon it within a district less in extent than the entire state? It is claimed by some that the action of the Commission must be with reference to and for the en- tire state, though in fixing the actual minimum it may vary the minimum in different parts of the state; but though the minimum may differ in various parts of the state they must all be fixed at the same time and as part of the same investiga- tion and proceeding. VI 2. Section 5 provides that the Commission shall establish a minimum rate of wages for an "Occupation," if, after careful investigation, the Commission is of opinion the wages paid to one-sixth or more of the women or minors employed therein are less than living wages. Can the Commission fix a minimum wage unless upon such investigation they find that at least one- sixth of the women or minors employed in the "Occupation" within the state are receiving less than living wages? Must they find that one-sixth or more of the women are receiving less than living wages before they can fix minimum wages for women, and that one-sixth or more of the minors employed in the "Occupation" throughout the state are receiving less than living wages before they can fix the minimum wage for minors? Or, can they consider women and minors as belonging to the same clas and fix minimum wages for each if they find one- sixth of the aggregate number of women and minors are receiv- ing less than living wages? Must the Commission fix a minimum for both women and mi- nors in the "Occupation," if they fix a minimum for either? Can the minimum fixed for women differ in amount from that fixed for minors in the same "Occupation," and, if so, on what basis must the difference be fixed? Can the Commission fix a different minimum for male and female minors in the same "Occupation"? 3. What is an apprentice or learner? By what rule shall the Commission determine what is an apprentice, and what is a learner? Must the minimum for apprentices be the same as for ordinary workers? If not, on what basis must the Com- mission fix the minimum for apprentices, if the cost of living is to determine the wage? 4. Must the Commission make the minimum apply to all classes without regard to the necessity of the class or of the^in- dividual in the class? By what rule, if any, is the Commission to determine what is necessary to maintain the worker in health, and what are the necessary comforts and conditions of reasona- ble life? Can the minimum wage be varied or fixed, having in mind the ability of the employer to pay the wage, and having in mind the necessity of the employe to contribute to the support of a family or others dependent? Must not the wage be fixed solely with reference to the actual needs of the employe of ordinary ability for a decent livelihood for the employe alone, without allowing anything to enable the employe to contribute to the support of a dependent, and with- VII out allowing anything for education or amusement or for cloth- ing or housing beyond that which will afford a minimum of com- fort and amusement? Can the Commission in fixing a minimum wage allow any- thing off or in reduction because of the advantages, educational or otherwise, which the employe gets from the particular em- ployment? 5. In case the Commission should promulgate a wage rate which was unsatisfactory to some employer or employers, could the employer so objecting be compelled to comply? Would a rate fixed by the Commission in the manner provided by the Minnesota Minimum Wage Statute be enforcible? May we not expect that the court would hold it unenforcible? This last question is suggested because it certainly is im- portant in determining how far the Commission should attempt to go. It also bears on the question of the advisability of or- ganizing an advisory board, and would also weigh with any person who was considering accepting a position as a member of the advisory board. It would be very embarrassing to go through all the formalities of fixing a wage rate under the stat- ute and then have it declared that there was no power to fix such rate, and no power to enforce it. Such result would also be prejudicial to the final accomplishment of the meritorious object of bringing about a proper wage adjustment. III. MINIMUM WAGE STATUTES IN OTHER STATES. Massachusetts : (Chapter 706, Acts 1912 as amended by Chap- ters 330 and 673, Acts 1913). Wage commission, 3 persons. Duty to enquire into wages of female employes in any occupation in the State if Commission has reason to believe that wages paid substantial number of such employes are inadequate "to supply the necessary cost of living and to maintain the workers in health." May establish Wage Board as to any occupation ; which shall determine the minimum wage, whether by time rate or piece rate, suitable for a female employe of ordinary ability in the occupation in question and also minimum wage for learners and apprentices and for minors below 18 years. Wage Board reports to Commission. If Commission approves, then hearing to employer on 14 days' notice. After such hearing Commis- sion may finally approve and enter decree noting the names of employers who fail or refuse to accept such minimum wage. VIII Afterwards if it wishes Commission may publish the names of employers from time to time whom it finds are refusing to fol- low the recommendation. But employer may file declaration in court asking for review of recommendation by Commission; and if employer sustained, then publication of his name is pro- hibited. The only penalty is for discharge of employe for testifying in connection with minimum wage hearing. In case recommen- dation is by less than two-thirds of a Wage Board the Com- mission reports the recommendation to the general court. Spe- cial licenses provided for. Commission itself enquires into wages for minors and deter- mins wages with proceedings same as on recommendation by Wage Board for women. Every employer keeps a register. Newspapers compelled to publish at regular rates. No libel action except for willful misrepresentation. Nebraska ( Chapter 211, Laws 1913) : Provisions substantially the same as in Massachusetts ex- cept that hearing to employer before Wage Board is on 30 days' notice and Commission shall within thirty days after final ap- proval after hearing, publish name of delinquent employers. Oregon (Chapter 62, Laws of 1913) : Commission, 3 members. Duty to fix (a) standard hours of employment for women or minors in any occupation, (b) con- ditions of labor for women and minors, (c) minimum wage for women in any occupation, necessary "to supply the neces- sary cost of living and maintain them in good health" and (d) minimum wage for minors "unreasonably low for such minor workers." Commission may hold public hearings for preliminary in- vestigation and after such investigation if it is of the opinion that any substantial number of women workers in any occupa- tion are working for unreasonable hours or bad conditions or inadequate wages, the Commission may call a Conference which will enquire into the matter and submit its report to the Com- mission with recommendation. It may recommend minimum wage for women workers of average, ordinary ability, sufficient to supply the necessary cost of living and maintain them in health and may also recommend minimum wages for learners and apprentices which shall be less than that for regular women workers. On report from the Conference, the Commission review, the same and if it approves it shall then publish a notice not less than once a week for four successive weeks in two newspapers of general circulation, of hearing for people interested; and IX after hearing it may make such order as it deems necessary to carry into effect the recommendation, which order becomes ef- fective sixty days after it is made, and afterwards it is unlaw- ful for employers to disregard such order. Special licenses al- lowed. Commission itself may enquire into wages for minors and may issue its order after notice and hearing, as for women work- ers, which order is compulsory on employers. Commission au- thorized to make different orders for same occupation in dif- ferent parts of the state when it deems conditions justify it, All orders of the Commission, except on questions of fact, appeala- ble to the Circuit Court for Multnomah County and from that court to the State Supreme Court. The penalty on employer $25 to $100 or imprisonment 10 days to 3 months, or both. Penalty for discharging employe for testifying. Employe may recover excess. Washington (Chapter 174, Laws 1913) : Prohibits employment of women workers "at wages which are not adequate for their maintenance." Creates Commission to establish wages for women workers and minors "as shall be held to be reasonable and not detrimental to health and morals and which shall be sufficient for the decent maintenance of women." A minor is a person of either sex under 18 years. Commis- sion may hold public hearings on notice; and if after such investigation they find wages of female employes in any occu- pation inadequate to supply them necessary cost of living and to maintain workers in health, then they call a Conference which may investigate and make recommendations to Commis- sion. Commission reviews such recommendations, may approve them, and after such approval issue an obligatory order effec- tive in sixty days or longer. After such order it is unlawful for any employer in such occupation to employ women over 18 years of age for less than the rate of wages fixed. Special li- censes allowed. Commission itself determines wages "suitable for minors 1 ' and may issue its obligatory order as for women and after such issuance of such order it is unlawful for employer to employ minor for less than the wage fixed. Penalty to employer who discharges for testifying and for violation of commission or- ders, penalty $25 to $100; and employe may recover differ- ence. No appeal from decision of commission upon question of fact but right of appeal to either employer or employe on ques- tions of law. Colorado (Chapter 110, Laws of 1913) : State Wage Board, 3 members, to enquire into wages to fe- male employes above 18 years in any mercantile, manufactur- ing, laundry, hotel, restaurant, telephone or telegraph business to enquire whether wages are "inadequate to supply the neces- sary cost of living, maintain them in health and supply the nec- essary comforts of life." After inquiry the Wage Board may fix the minimum wage, when agreed to by two members of the Board. Then the Board gives thirty days' notice for hearing in the locality of the industry affected, by publication in news- paper and mailing copy to the employer affected. After such public hearing the Board may issue obligatory order to be ef- fective 60 days from the date of order ; and afterwards it is un- lawful for any employer to fail to comply with the order, which order is to be published and served personally. Any employer affected may appeal to the courts on the ground that the order is unlawful or unreasonable, but the evidence considered on such appeal is confined to the evidence presented to the Board in the case from the decision in which the appeal is taken. Further appeal allowed to the Supreme Court, Pen- alty to employer for not complying with order is fine not to exceed $100 or imprisonment not more than 3 months, or both. Penalty for discharging employe; and employe may recover dif- ference. Special licenses provided for. Wisconsin ( Sections 1729, s 1 to 12, Statutes 1913 ; Chapter 712, Laws 1913) : Wages less than living wage to any female or minor employe prohibited. "Living wage" defined to mean compensation by time or piece work or otherwise "sufficient to enable the em- ploye receiving it to maintain himself or herself under condi- tions consistent with his or her welfare." The Industrial Commission, already established, given jur- isdiction to investigate, ascertain, determine and fix living wage pursuant to Sections 2394-41, etc., relating to industrial com- mission, providing that Commission may investigate upon no- tice and hearing and promulgate orders. But on petition of em- ployer Commission shall allow special hearing on the reasona- bleness of any order, which hearing shall be had; and after- wards any order of the Commission is subject tp review by ap- plication of employer to court against the Commission as de- fendant to vacate and set aside order ; which action is brought by complaint with summons with power of injunction on hear- ing, with power of court to review or re-submit to the Commis- sion. Penalty to employer not less than $10 nor more than $100 for each failure to comply with Commission's orders, each XI day's fault to constitute offense. Commission may establish Advisory Board. Provisions as to minors who shall have no trade, etc. Commission may grant special licenses to employe unable to earn the wage, permitting such employe to work for a wage stated which is commensorate with his or her ability. No such licensee shall be employed at less than the wage fixed. Ohio (Constitutional Amendment, adopted Sept. 3, 1912) : Amended constitution by adding articles providing that "laws may be passed fixing and regulating hours of labor, establishing a minimum wage and providing for comfort, health, safety and general welfare of all employes," etc. Utah (Chapter 63, Laws of 1913) : Makes it unlawful for any regular employer of female work- ers to pay any women less than the wage herein specified, to- wit: Minors under 18 years not less than .75c per day; adult learners and apprentices not less than .90c per day (1 year con- stitutes apprentice period) ; for adults who are experienced in the work they are employed to perform, not less than $1.25 per day. Regular employers of female workers shall give certificate of apprenticeship, for time served by apprentices. Any regular employer of female workers paying less than the wage specified guilty of misdemeanor. California (Chapter 324, Statutes 1913) : Commission of 5 members with duty to ascertain wages, hours and conditions of labor, etc., in various occupations in which women and minors are employed. If, after investigation (state- wide), wages of women and minors found inadequate to supply the cost of proper living in any occupation, Commission may call a conference, that is, "Wage Board," whose deliberations are made a matter of record. Wage Board may inquire and report to the Commission its findings as to the minimum wage adequate to supply to women and minors engaged in the oc- cupation in question "the necessary cost of proper living and to maintain the health and welfare of such women and minors." Commission has power after public hearing to determine min- imum wage for women and minors in any occupation. Such hearing is on public notice in newspapers and by mailing copy to each county recorder not less than fourteen days before hearing. After such hearing Commission may make a manda- tory order effective in sixty days, specifying minimum wage for women or minors in the occupation in question. No order XII to become effective until after April 1, 1914. Order published and recorded in each, county and mailed to each employer in question. Special licenses allowed. Penalty for discharging employes or for disregarding order, not less than $50 and imprisonment not less than thirty days, or both. Employe may sue for difference. On appeal from or- der, the findings of fact made by Commission are, in absence of fraud, conclusive. Appeal within twenty days allowed to Superior Court of certain counties. Answer by Commission with return by Commission of all documents and papers and testimony and evidence. The court may confirm or set aside on grounds ( 1 ) that Commission acted in excess of its powers and (2) that its decision was procured by fraud. Either party may appeal from Superior Court to the Supreme Court. ALSO IN CALIFORNIA (Chapter 98, Proposal Constitu- tional Amendments 1913). Proposes amendment to State Constitution authorizing legislature to establish minimum wage for women and minors. THIS BOOK IS DUE ON THE LAST DATE STAMPED BELOW AN INITIAL FINE OF 25 CENTS WILL BE ASSESSED FOR FAILURE TO RETURN THIS BOOK ON THE DATE DUE. THE PENALTY WILL INCREASE TO 5O CENTS ON THE FOURTH DAY AND TO $1.OO ON THE SEVENTH DAY OVERDUE. UV 13 1933 OV 13 1933 IUN161992 - M 4 'P LP NOV 131990 JV 6 1990 BfTERLIBRARYLOMI HAD ^ KtMi WMK D wi/i UNW.C^ CALIF., BERK. LD 21-100m-7,'33 REVIEW PUBLISHING COMPANY ... Publishers ... MINNEAPOLIS, MINNESOTA U.C. BERKELEY LIBRARIES UNIVERSITY OF CALIFORNIA LIBRARY