GIFT OF L,^//t-. )/a/f- /l/nj^o/-y^ i^JTl^t^ L^'at?'gQD&^ A STUDY OF THE COST OF LIVmG^/ I By Katherine Philips Edson, Executive Officer, I ndus trial Welfare Commission, State of California. April 19, 1919. \'J'() the Industrial Welfare Commission: -^-:' ' '," Gknti.emen — After hnvinc: studied tho cost of living increases as reported by tlie United States P.ureau of Labor Statistics, the study made of the Pacific Coast by the University of Washington for the Emergency Fh>et Corporntion. the study made by the XationnI Industrial Uonference Board, the studies made by Professor j\I. K. Jaffa of the University of California, used by I lie Oakland Arbitration Board in the adjustment of wages for the Key liouto Sysuni and afterwards used by the National \\'ar Labor Board in the settlement of the disputes concerning wages coming before them, and also the studies made by our agents during the summer and fall of 1918 of San Francisco, (iakland and Los Angeles, I have the honor to report the following conclusions : The i'nited States Bureau of Labor shows that the index figure for all commodities in 1913 was lOO per cent ; in 1914, !I9 per cent; in December, 191S, 20G per cent, or lOG per cent increase. It also shows that in San Francisco it was 2 per cent higher in December, 1918, than in November, 1918. The National Industrial Conference Board, in its study, "War-Time Changes in the Cost of Living" from July, 1914, to November. WIS. "published in February. 19r,t, shows that the increase in the cost of living for a workman and his family of four, in the industrial cities of the United States, is GS.l per cent since 1914. Their study shows that there has been the following increase : Food 8.3 per cent Shelter -- 20 per cent Fuel, heat and light 5.5 per cent Clothing 93 per cent Sundries -- 55 per cent The annual expenditure of the average workman's family is distributed approximately as follows: Food - — 43 per cent Shelter 18 per cent Fuel, heat and light 6 per cent — 24 per cent Clothing 13 per cent Sundries 20 per cent Professor Jaffa shows that the increase in the price of food for a woman during moderately active work, since May, 191G, to February, 1919, is 75.8 per cent ; that the cost per day for raw materials unprepared in any waj- is from ,$0.2477 in May, 1916. to .'>0.4354 in February, 1919, these prices being for the city of Berkeley. The studies made by this department were begun in July, 1918. and were made partly by volunteer assistance of women attending the University Summer Session under our direction. These studies were made principally through cafeterias and lunch rooms of San Francisco, Oakland and Berkeley. They were made from several angles and showed that the cost ranged from 70 cents to 89 cents per day. Properly balanced meals might be purchased in cafeterias of these cities by a woman doing light work, if she had a knowledge of food values, for 70 cents a day. However, for a woman doing active work, the average cost would be 89 cents. The San Francisco Y. W. -C. A. has kept the average amount of checks for various meals purchased in that institution for a huig period. They average as follows : Breakfast ?0 20 Lunch 27 Dinner 37 : : :- : :\ .-$0 84.per-»55iy lu disoussiiiK witli hotol and cafoti-ria inou hath iu San Fran- cisco and Los Aiificlcs, they all conci'ded that it costs from 75 cents to $1 per day to feed their help. Studies were made of cafeterias, lunch rooms and boarding homes in Los Angeles. In women's subsidized boarding homes pric. s for room and board have advanced from 20 per cent to 42 per cent — this is for a room for two and two meals. Cafeteria owners said that checks ran from 28 per cent to 33 per cent higher tiian in the last few years. Drug store and soda fountain Imiches showed an increase of 40 per cent. It must not be forgotten that portions are much smaller and cheaper varieties of food are being eaten by women workers; that is. with the same or larger expenditure of money less nutritious foods are being consumed because of the high cost of the more desirable articles. The United States Bureau of Labor Statistics shows an increase in food prices between December, lJtl4, and June, 1!)1S, in San Francisco and Oakland, of 44.87 per cent ; in Los Angeles, a 40.02 per cent increase. There has been not less than 1.8 per cent increa.se per month since June, 1918, according to the estimate of Prof. William F. Ogburn, noted cost of living expert, with the National War Labor Board. This would mean an increase since June, 1918, through February, 1919, of 14.4G per cent, or 59.33 per cent for San Francisco and 54.48 per cent for Los Angeles, as against 83 per cent in the industrial cities of the country at large. California cities have not felt the increase in cost of rent as have the cities of the Northwest and the Eastern states during the war times. Many reasons account for this, the principal one being the increase in industry was not as great here as in those communities having large orders for munitions, clothing and other war necessities. In our shipbuilding districts of San Francisco and Oaklaud. in June, 1918, it was found by a study made for the Wage Adjustment Board of the Emergency Fleet Corporation that rents had decreased 4.54 per cent since December, 1914. to June, 1918. In Los Angeles it was found that in the shipbuilding district they had increased by 8.28 per cent in the same time. However, in the fall of 1918, in all the cities of the state, a sharp increase was made in rents of apartment bouses, lodging houses and hotels of from 15 per cent to 20 per cent ; in some cases greater. This has been felt keenly by the woman living on a margin. It has meant moving farther out and frequently to less desirable quarters. The secretary of the Los Angeles Apartment House Associa- tion told our agent that the increase would uot be less than 15 per cent. The Secretary of the San Francisco Apartment House Association said the increase in San Francisco would be from 15 per cent to 20 per cent. Practically no building has been done in three years and all desirable quarters are at a premium. The National Industi'ial Conference Board states that an estimate of 20 per cent advance in rents is a conserva- tive estimate for the country at large. It is in clothing that the working woman, as well as all people, has felt the increased cost of living. The proportion of her budget that goes for clothes is necessarily larger than for a family or for a woman at home. She must be presentably dressed, and the standard demanded by the employer and the general public of neatness and cleanliness can not be attained except at a sacrifice of essential necessities on the present wages paid. According to the study referred to. made for the Emergency Fleet Corporation, the increase in the cost of clothing for the irife of a shipyard worker was found to be 71.92 per cent in Oakland and San Francisco. In Los Angeles it was found to be 77.82 per cent. The National Industrial Conference Board reports as follows the increase in articles of women's clothing from July 1, 1914, to November 1, 1918: Hosiery 94.2 per cent i Knit vests ^-'-^ ^^^ ^^°*' ^Muslin combinations 82.7 per cent Coats 91-1 per cent Women's blouses --- 64.2 per cent Shoes 90.5 per cent Glove^ ,__^,^_^;-: 100.2 per cent lUk*-*. ^v;-;-i-^i-- ^^'■'^ ^^^' ^^°* Their trial bud!i;et for the wife of a workius man sliows a cost in 1914 of $58.15. and in 1918 the same articles cost $109.40, or an increase of 88.1 per cent. Studies made by our agents in six stores in San Francisco, Oakland and Berkeley show an increase of G3.2 per cent for the same articles over the 1914 prices. In Los Anseles a similar, but not strictly comparable, study was made and showed an average increase of 89 per cent. Mrs. M. V. Greene made an independent study of Emporium employees for board and room and also clothing. This study showed an increase in clothing ranging from 33.3oJ per cent in certain articles to tiO per cent within the last two years. This evidence has led me to prepare for your consideration the following budget : 1 Pi of in- crease. T-l rH tH J 8 S 8 00 r-" in ^ •a c « g e 8 1— t 1ft CO in M © 03 01 c s s 00 > J •*- o *< 10 o O 3 s i O ' O 'i 1 i n 5 CO c " .E o (Mr" T-< C Ift O rH (0 V S ♦J in Ul > IS s. C8 a E o O 2 ^ 8S8S8gS8SgSS8gg OO-^lflWeat^OOCSlOCOe^MrHr-t Of-' T-t i-l ^ r^ 8gSS88S8 O i-f 1-t O O »0 (N CO i-H (M r-t r-t 1 1 ; 1 I 1 I i 1 1 1 j j 1 1 ; ; 1 i i i i i ; : i i i ' i ! i i i i i i i i 1 i i is 1 . s 1 ( 1 1 _ i ; : '. ! ! : c I S ; 'gg'"' 1 1 i ; 1 : i-2 ; l&g i 1 i i i-S i ^ 1 1 1 : ; c 1 «S ^ 1 1 1 1 1 oi 1 •*r t I 1 1 — M 1 -4 S3 , , , 1 a s 1 1,1 +^ c ' A- .. I ,' ; -t^ =; = 1 ^^ i i 1 = ^^ i ;? 2 S E -g 55 S ^ £ 3 a; >^ Relative Weights of Items Forming Budgets. 1914 (per cent) 1!II8 (per cent) Board and room -- -- 60 22 18 61 Clotliine - --- 24 Sundries 15 100 lOO This beinj; llip cvidoncc I draw from the best authoritativl souroos nt my dispose 1, I iireseiit as my recommendation thl following hndset as the minimum cost of living for a soIl| de]iendent woman in California : Board, at .$r>.25 per week $273 00 IJooni. at !f3 per week ITiCi OO Clothing 170 7.") Sundries !()(> 20 $705 95 or $13.57 per week. Whether it is desirable to fix a minimum wage on this figure is for the commission as a matter of policy to determine. Tin minimum wages fixed by the several states in the Union an as follows : Wttshington — For 4S-hour week, $13.20. To exist until six| months after peace is signed. Oregon — For 50-hour week, $11.10 for Portland. Kansas — $S..50, mercantile; $9, telephone; (proposed — $11, | factories) . Massachusetts — $9, factories; $10, retail millinery; $8.50, mer- c-antilc ; $11, wholesale millinery. Manitoba (Canada) — $12, factory. Province of British Columbia — $12.75, mercantile ; $13.50, laundry. The National War Labor Board has been fixing in war industries a minimum wage of $15 for a 4S-hour week, and in some industries as high as 35 cents per hour. In Arkansas it set an increase of $3.50 per week over the rate fixed by thn Industrial Welfare Commission in the laundry industry, making a wage there of $10.50 per week. Respectfully submitted. Katherine Philips Edsox. Note: June 10, 1919. The Industrial Welfare Commission accepted the above study. and. on April 22, 1919, fixed a minimum wage of $13.50 per week for the mercantile industries. On May 12, 1919, the Commission fixed 28 cents per hour as the minimum rate in the' fruit and vegetable canning industry, with a piece rate scale that will yield not less than 2s cents rer hour, or $13.50 per week. 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