Productivity of railroad labor. Under stress of wartime demands the railroads are handling unprecedented amounts of both freight and passenger traffic. Labor productivity has increased considerably, being aided by fuller loading of cars and improvements in both equipment and operating methods. Data on productivity and technological changes are given on page 444. Working conditions in India. India, although primarily an agricultural country, has developed some largescale industries. These industries employ about 5 million workers, of whom some 3 millions are in factories. To regulate the labor conditions of these workers numerous measures have been passed, limiting hours of work, providing a weekly rest day, establishing health and safety standards, requiring the payment of compensation for industrial injuries and certain occupational diseases, etc. An account of the employment and working conditions in the various industries is given in the article on page 452. New housing for war workers, 1940-43. The construction of 865,000 dwelling units suitably located for use by war workers and within the price range that they could afford was started by private builders in the 32-year period from January 1940 through June 1943. Some 456,000 family units were also put under construction by the Federal Government, in addition to dormitory accommodations or trailers. Page 513. Changes in character of civilian textile products and apparel. Voluntary changes in production by manufacturers and changes necessitated by shortages of materials and Government regulations have resulted in significant modifications in civilian textile products and apparel. The more important of the recent changes, based upon a review of these regulations and reports obtained from manufacturers and retailers, are described in the article on page 421. FOR SEPTEMBER 1943 Recent Changes in the Character of Summary THE effect of the war program has been reflected to an increasing extent on consumer-goods markets in recent months. Early in this program, changes in qualities in consumer goods resulted chiefly from manufacturers' attempts to offset advances in costs and thus avoid the necessity of setting higher retail prices. Later, familiar items such as electric refrigerators, washing machines, and household articles requiring large quantities of metals gradually disappeared from the civilian market as the Government limited the use of scarce metals. With the entry of the United States into the war and the resulting increased demands for textiles for military needs, Government regulations were extended to the textile field. Stocks of raw silk held in this country were reserved for military purposes, and limitations were placed upon the civilian use of wool. Certain cotton goods were limited to military use, not because of any shortage of raw cotton, but because military demands require the use of all machines capable of producing certain qualities of military standard. As a result of the heavy orders for military fabrics in 1942, production for the civilian market was considerably decreased. In order to conserve the available supplies, the War Production Board initiated a style-simplification program through the issuance of a series of orders prohibiting certain style features requiring the use of large quantities of materials. As shortages developed in the work-clothing market, manufacturers were permitted to use priority ratings to assist them in obtaining the required materials. During 1943 shortages have developed in many essential textile and apparel markets and more positive steps have been taken by the Government to supply the essential civilian needs. Rationing was extended to shoes, when production of durable civilian shoes was limited in order to assure adequate leather supplies to the armed forces. To increase the output of important cotton fabrics, some constructions were standardized in an effort to obtain maximum output, and a specified proportion of looms were earmarked for the production of fabrics essential for civilian use, such as denim for work clothing. In order to channel supplies of knitting yarns to the manufacture of winter underwear, WPB required knitters to allocate specified percentages of yarn output suitable for such underwear to manufacturers of these products. 1 Prepared in the Bureau's Price Analysis Division, by Laura Brown Webb. Several steps have been taken by the Government to insure that available supplies of raw materials will be used in the production of goods of durable qualities. Men's, women's, and children's hose must meet certain quality standards formulated by WPB, and the Office of Price Administration has placed price ceilings on the various qualities of women's rayon hose, by class of distributor. A voluntary "war model" program has been initiated in the production of overalls; this program has been discussed in relation to other commodities, but has not been extended to additional apparel items. With the extension of Government controls and the development of shortages in many lines, there has been a noticeable tendency on the part of consumers to make purchases in excess of current needs. In order to discourage this practice, the WPB in July 1943 requested retailers to cooperate on a voluntary program designed to avoid certain undesirable promotion policies and practices with respect to the advertising and sale of textiles and textile products. Retailers were requested to discontinue the use in advertising of any mention of fear of scarcities or of difficulty of obtaining goods from manufacturers. Reference to "sales price" was to be limited to true clearance sales; in all other cases price comparisons were to be limited to comparison with ceiling prices. Many retailers had undertaken on their own initiative to limit sales to customers. Various methods of allocation have also been devised by manufacturers. Some are limiting sales to customers on the basis of the dollar volume of their purchases during a specified period, some are allocating on the ratio in which their piece-goods orders were accepted by their suppliers, and some are allocating the goods among their salesmen and permitting them to distribute among their customers as they choose. A number of manufacturers reported, in a recent survey conducted by the Bureau, that they were accepting no orders from new customers. Others are accepting only "very desirable" new customers. Because of the tendency of many consumers to buy higher priced merchandise (i. e., to "trade up") as they receive higher incomes, and because of manufacturers' and retailers' desires to concentrate sales in higher price brackets which ordinarily yield a higher rate of return, lower price. lines of many types of apparel and textiles have virtually disappeared from the retailers' shelves. In order that consumers shall not be forced to buy solely in higher price lines, several official actions have recently been undertaken. WPB has required, shoe manufacturers to continue production in their previously established price lines, with the same proportion in each line as in the base period. In several OPA pricing orders manufacturers were prohibited from adding higher price lines. In its six-point program designed to make rationing or other severe regulation of textiles unnecessary, WPB announced that it would encourage greater production of lower priced clothing by directing the manufacture of fabrics to this important field. Retailers of men's and boys' clothing are prohibited from introducing in lower price departments, such as bargain basements, ceilings which were established in higher price departments. Some of these regulations have been announced too recently to have affected the retail market as yet. However, the cumulative effect of voluntary changes in production on the part of manufacturers, as well as changes necessitated earlier by Government regulation and shortages of materials, have already resulted in significant modifications in goods currently stocked by retailers. Certain of these regulations have not fully accomplished their purposes. There have been some objections by the trade, particularly, to price regulations in relation. to quality standards. Moreover, regulations designed to increase production in certain classes of goods and especially to maintain production in the lower price lines have not been uniformly successful. Manufacturers and retailers alike complain that many of the recordkeeping requirements are burdensome. The following discussion describes the more significant modifications that have appeared in the consumer-goods field since October1942 as a result of either Government regulation or manufacturers' inability to obtain adequate supplies of materials to continue production as formerly. Reports from retailers and wholesalers were obtained by the Bureau of Labor Statistics' field staff in the course of collecting retail and wholesale price data. Manufacturers are becoming increasingly reluctant, however, to describe the quality of fabrics used in a given price line. This is due for the most part to the fact that as fabric shortages become more acute, they are willing to purchase almost any fabric available to keep their factory in production. For this reason, kinds and qualities of fabrics used from time to time vary considerably. Furthermore, for garments such as women's street dresses, style features have always been considered more important than durability, and manufacturers have had little interest in obtaining construction details on fabric purchased. Textile Products WOOL PRODUCTS Early in January 1942 the Government placed sharp restrictions upon the use of wool for civilian products, and subsequent amendments to the original order limited civilian allotments even more severely, so that by the third quarter of 1942 manufacturers of worsted fabrics were allowed only 10 percent of the poundage used for civilian goods in the corresponding period of 1941 and manufacturers of other wool fabrics were allowed 21⁄2 percent. The accumulation of record-breaking stocks of wool in this country resulting from the improved ocean-transport situation and the severe limitations placed upon wool for civilian use led to a series of orders, beginning late in 1942, relaxing restrictions on the use of wool for essential civilian needs. It was pointed out, however, that a shift in the scene of military activities might at any time change military requirements or interfere with imports, and that restrictions on wool for civilian use might again have to be tightened. In the latest amendment to the wool allocation order, issued June 8, 1943, WPB eliminated the granting of bonuses for the production of blended yarns and fabrics, increased manufacturers' quotas for the production of worsted fabrics to 70 percent of their consumption for civilian purposes during the corresponding period of 1941, and increased quotas for the production of woolen products to 50 percent of the consumption during this base period. Government officials have warned that these recent increases in the wool allotments for civilian uses may not, however, result in pro For a description of earlier developments, see Monthly Labor Review February 1941 (pp. 286-291) and November 1942 (pp. 891-902). portionately great increases in the products manufactured, as shortages of manpower, fuel, and machinery are being felt by this industry. On August 2, the WPB and the War Department notified manufacturers of woolen and worsted products, holding Army contracts, that they could defer delivery of approximately 50 percent of these contracts for 4 months if they desired, in order to increase production for civilian accounts. In view of the fact that such a deferment is voluntary on the part of manufacturers, it is not known to what extent this will lead to increased production for civilian use. This action was sponsored by the Office of Civilian Requirements of WPB and, according to the trade press, it is believed that the War Department acted favorably upon the proposal because of the present shortage of warehousing facilities. Other military and Lease-Lend orders are not affected by this action. WPB has announced that the materials manufactured under this plan are to be used principally in the production of men's mackinaw and melton-cloth work jackets, children's legging sets, blankets, and other essential items of men's, women's, and children's apparel. WOOL APPAREL Because of the large stocks of fabrics for men's wear, which had been produced prior to the issuance to the wool allocation order, in addition to the fact that the induction of large numbers of men into the armed forces removed them from the civilian market, limitations on the use of wool were noticed only slightly in the civilian market for men's wear prior to the spring of 1943. By that time, however, the large inventories had practically disappeared, and garments affected by both the wool allocation and the style simplification orders were predominant in the retailers' stocks. In March 1943, the Bureau's representatives reported that hardfinish worsted suits for men were difficult to obtain and that blended goods were replacing worsteds in the lower price brackets. By March the shortage of rayon linings and pocketings had also developed, and, according to the trade press, large quantities of suits which had been cut could not be finished because of the dearth of materials. Production of suits was also said to have been delayed somewhat in the spring of 1943 by the diversion of materials typically used in men's wear and by the conversion of contract shops (which produce much of the men's clothing in the eastern area) to the manufacture of women's ready-to-wear clothing, which was reportedly proving a more profitable operation. These various difficulties resulted in considerable delay in the delivery of suits by many manufacturers, and some retailers received their spring shipments as late as July 1. Numerous quality changes on men's suits were reported during the winter of 1942 and spring of 1943, according to the Bureau's agents. Lighter-weight fabrics were introduced and blended fabrics were replacing worsteds in the lower price lines. The shifting to war plants of woman shop workers, who did much of the hand detail on men's suits, resulted in the use of more machine-finished suits. Manufacturers reported in the summer of 1943 that there was some tendency to decrease the number of blended fabrics used in current production of suits. This trend can be attributed in part to consumer resistance to blended fabrics and to the fact that production is now |