Page images
PDF
EPUB

would mean higher labor costs all around. While we do not pretend to speak for the farmers, we are in direct contact with them each day and realize the local situations which prevail.

Our members realize that only so long as we serve the farmer will we prosper. Our interests are closely tied in with those of all farmers. We know that the past year has not been a good one for farmers because of reduced income. We sincerely trust that nothing will be done to force the prices farmers pay to a higher level.

In summary, we urge that you continue in force the present retail exemption as it now stands since its elimination would mean:

(1) Higher costs to farmers on the products he buys from his feed dealer or (2) a reduction in the service the farmer expects from his feed dealer and (3) an increase in the general rural wage level which would increase farm labor costs.

Thank you for permitting us to bring to you the views of the members of our association.

Senator DOUGLAS. Thank you very much for testifying.

That concludes the list of witnesses for this morning.
(Whereupon, at 11: 25 a. m., the hearing was recessed.)

APPENDIX

APPENDIXES TO STATEMENT OF MRS. JULIA ALGASE, NEW YORK HOTEL TRADES COUNCIL

APPENDIXES

APPENDIX 1

Last year was the best in their history for hotels in the United States-and spokesmen for the industry say it will be even better. These are the recordbreaking figures issued by the American Hotel Association for 1955:

Con

Gross income, $2,653 million, an increase of about 3 percent over 1954. struction of new hotels increased in the first 10 months of 1955, with 79 built or under construction, as against 54 in the same period of 1954. The new hotels are valued at $181,257,000 compared with the 1954 total of $146 million. A 5-percent increase in gross volume of business is forecast for 1956, based on expectation of the national economy remaining at a high level, with travel, both for business and recreation, continuing to rise.

As of November, an indicative list of hotel stocks and bonds was up 32.1 percent and 3.1 percent, respectively.

APPENDIX 2

Mr. Stanley Ruttenberg for the AFL-CIO has said that in Arizona (where incidentally the Continental Hotels System operates 2 of its 15 hotels) the minimum wage for women employed in retail trade (men are not covered) is 55 cents an hour. It may be added, there is no minimum wage set for service industries in Arizona other than for laundry and dry cleaning.

In Tennessee, where the Grenoble Hotels chain operates one of its 21 hotels, there is hours coverage only; there is no minimum wage. Georgia too, has hours coverage only. Here, the Hickory Hotel Co. chain has one of its 46 hotels. Nine of its hotels are in Ohio where the minimum set is from 49 to 55 cents an hour for nonservice employees.

The Packard chain of seven hotels, owned by Arthur J. Packard who testified here against the extension of coverage, is also in Ohio. Mr. Packard foretells dire results if there is extension.

Hard-working and upstanding hotel workers all over the country will resent Mr. Packard's statement that if hotels didn't employ people to scrub pots and pans or do other menial labor, they would become public charges. We don't notice that this altruistic approach is used by the hotel industry in its rapid adoption of all forms of automation or that hotels are in business for the purpose of keeping our people from being public charges.

If what Mr. Packard says is so, then there is no cause for his fear that firms which fall below the coverage tests of the Lehman and Murray bills (such as those in chains with less than 5 units or those with less than $500,000 annual business) would have to raise their wages in order to compete for labor with the companies required by law to pay the Federal minimum. All they'd have to do is to go to the relief rolls for the people who are hoping and praying that an altruistic hotel owner will come along and give them a substandard pay job in his hotel.

APPENDIX 3

In preparing for these hearings, I reread some of the statements presented to your committee last year. I recall to you the following statements by Secretary of Labor James P. Mitchell:

"The amendments of 1949 were not entirely consonant with the overall purpose of eliminating substandard living conditions throughout the Nation, since actually they reduced and limited the number of workers protected by the minimum wage.

"Many employees in need of a minimum wage who do not now have it work in units of the vast interstate department stores, variety stores, and grocery chains, nationwide motion-picture theater chains, interstate hotel systems, and loan companies.

"No sound reason appears why the act should not apply throughout these businesses which are controlled on an interstate basis.

"These multi-State enterprises are basically not local or intra-State in most important characteristics, including ownership, control, financing, management, and personnel policy.

"An establishment owned or directly controlled by an interstate chain is a unit of an interprise whose operations are in the stream of interstate commerce and whose labor standards directly affect interstate standards. The huge size and increasingly diversified operations of these enterprises are in a large measure dependent upon the rapid and progressive strides made by this Nation in the fields of interstate communication and transportation. They are obviously engaged in commerce affecting more States than one. Such commerce, under the Constitution, is appropriate for regulation by the Federal Government."

APPENDIX 4

MOTELS

The December 24, 1955, issue of the Hotel Gazette has this to say of motels: "Most hotel and travel men realized that travel was on the increase in 1955. "The year 1956 is one in which most travel experts expect an even further spurt of travel.

"Commercial and resort hotelmen are thankful for the continued travel boom for they are able to siphon off a healthy share of the tourist dollar.

"Knott plans major expansion in motel field. Seven luxury motor hotels planned, with first to debut in spring in Williamsburg, Va., reflect industry trend as chains shift to capture motor air travel trend.

"Major operators particularly among the chains are setting their sights on motels. At a fast pace, the past year has seen the buying, building, and leasing of motor hotels by several chains-the leaders being Knott, Pick, and Sheraton.

"Knott will concentrate on luxury motor inns which will have hotel accommodations as well as motor units.

"The attitude of the hotel industry in general is beginning to reflect the feeling that motels are indeed a part of one hotel industry.

"There are over 60,000 motels in the United States now grossing over a billion dollars annually."

APPENDIX 5

CHAINS

The foregoing facts are most pertinent to the question of including hotel workers under the minimum-wage provisions of the Fair Labor Standards Act.

For they show one of the greatest changes that has come to the hotel industry since the Fair Labor Standards Act was adopted 18 years ago. Even 10 years ago, there were no such giant chains of hotels in existence as the Sheraton and Hilton, for instance. Today, each of these chairs is a far-flung empire with units in many cities not only in this country, but in numerous foreign ones.

This consolidation of hotels has naturally brought with it hugh wholesale buying of supplies and equipment for many or all units in the particular system, with goods consequently shipped across many State lines.

In effect it also transports guests across State lines, that is, through advertising and promotion it tries to attract-and does attract-guests from every part of the United States. Particularly is this true of hotels in large cities when they go anywhere in the 48 States (and the District of Columbia) to induce conventions to be held in their place.

Reservation of rooms are now made by central bureaus of a chain or group of hotels for any city in which it has units.

Also it must be noted that in addition to operating hotels, most of the chains are also in the rest-estate business in a number of different States.

APPENDIX 6

FACT SHEET FOR NEW YORK HOTEL TRADES COUNCIL, AFL

The following figures and facts on hotels in the United States come from Survey of Current Business, a publication of the United States Department of Commerce, Office of Business Economics, Annual Review Number, February 1955 and March 1956 number.

[blocks in formation]

NOTE. Our average weekly earnings base wages, $50.10 for 40 hours excluding overtime.
Average hourly gross earnings per worker, including overtime

[blocks in formation]

NOTE. Our average hourly earnings base wages, $1.251⁄4 ($1.354) excluding overtime.

[merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][ocr errors][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small]
« PreviousContinue »