In 1890, the average annual industry product per employé was $807.46; in 1902 it had increased to $868.55. Considering that proportional earnings, indicated by 100, represent $807.46, the average annual industry product, it would naturally follow that proportional earnings represented by 96 should result in a reduced average annual industry product. On this basis, proportional earnings indicated by 96 would require an average annual product amounting to $775.16. But we have seen that the actual industry product in 1902 was $868.55 for each employé, which shows an increase of 12.05 per cent in actual industry product in 1902 as against an industry product based on proportional earnings. In 1890 the boot and shoe factories were in operation seven days less than in 1902 and the proportion of business done reached 72.16 per cent of the total capacity of the establishments for that year, while in 1902 the proportion of business done was but 67.06 per cent of a possible 100. Considering the percentages of increase or decrease in actual industry product in 1902 as against the industry product based upon proportional earnings, we find the following results for the other industries considered : In Carpetings, an increase of 2.89 per cent; in Cotton Goods, a decrease of 0.43 per cent; in Leather, an increase of 2.10 per cent; in Machines. and Machinery, an increase of 10.33 per cent; in Metals and Metallic Goods, a decrease of 5.43 per cent; in Paper, a decrease of 2.45 per cent; in Woollen Goods, an increase of 9.89 per cent; in Worsted Goods, an increase of 48.34 per cent; and in All Industries, an increase of 11.59 per cent. We have described the manner in which " Industry Product" is obtained; that is, by subtracting from the total value of the manufactured goods the cost of the stock used therein. The remainder may be further divided into two parts; one being paid in wages to persons employed, and the other forming the profit and minor expense fund previously explained. For each of the years from 1890 to 1902, both inclusive, and for each of the industries previously considered, and for All Industries, we show in the following table the percentages of industry product paid in wages, in the consideration of which the fact should be recalled that in each year there was a variation in the number of establishments considered, and that apparent gains or losses were no doubt caused or greatly influenced thereby. 1890, 1891, 1892, 63.63 56.82 62.75 55.05 54.89 52.36 37.66 52.17 56.59 53.01 49.42 48.66 49.08 47 55 Considering the percentages for the years 1890 and 1902 only, we find a smaller percentage paid in wages in 1902, as compared with 1890, in the case of the following industries: Boots and Shoes, Carpetings, Leather, Machines and Machinery, Woollen Goods, Worsted Goods, and in All Industries. Those industries showing a larger percentage paid in wages in 1902 as compared with 1890 are: Cotton Goods, Metals and Metallic Goods, and Paper. We next present a table showing the percentages of industry product devoted to profit and minor expenses, it having the same specification by years and industries as shown in the one relating to wages, and subject to the explanation which precedes that table. Percentages of Industry Product Devoted to Profit and Minor Expenses. In the case of Boots and Shoes, Carpetings, Leather, Machines and Machinery, Woollen Goods, Worsted Goods, and All Industries, an increase is shown in the percentage of industry product devoted to profit and minor expenses; a decrease is shown in the case of Cotton Goods, Metals and Metallic Goods, and Paper. In other words, in seven instances the profit and minor expense fund had increased in 1902 as compared with 1890, and had decreased in the case of three industries. Referring to the comparison of proportional earnings in 1890 and 1902, on page 182, we find an increase in eight instances, and a decrease in two: Boots and Shoes and Leather. We are now ready to bring together the comparative figures for industry product which represent the number of establishments considered in each year, the "wage fund," and the "profit and minor expense fund;" the percentages indicating the comparative size of these funds; the increases or decreases, by years, for each of these funds; the proportional earnings, the average yearly earnings, and the average profit and minor expense fund per employé. All of these points are shown, for the years 1890 to 1902, in the table which follows: The wage fund of $117,144,984 in 1890 had increased, in 1902, to $193,552,175, but the number of persons employed had advanced from 270,195 in 1890 to 420,781 in 1902. The number of days in operation in 1890 was 290 and in 1902 296, a gain of six days' production. The proportion of business done in 1890 as compared with largest possible product (or 100 per cent) was 73 per cent; in 1902 it was 70 per cent. If we examine columns 7 and 8 in the table last presented, we shall see the fluctuations in the percentages of industry product going, respectively, to the wage fund and to the profit and minor expense fund. In 1891 and 1892 combined the wage fund lost 1.52 per cent, but in 1893 it gained 2.13 per cent. In 1894 and 1895, combined, it lost 1.10 per cent but gained 1.38 per cent in 1896. In 1897, 1898, 1899, and 1900 it lost, combined, 5.24 per cent, gaining 0.42 per cent in 1901, and losing 1.53 per cent in 1902. In 1902 as compared with 1890 the wage fund had fallen from 53.01 per cent to 47.55; the profit and minor expense fund had risen, in the same time, from 46.99 per cent to 52.45, a gain equal to the wage fund decrease. In 1902 the average yearly earnings were $459.98 as compared with $433.56 in 1890, or a gain of six per cent. The average profit and minor expense fund per employé increased from $384.26 in 1890 to $507.40 in 1902, a gain of 32+ per cent. It is evident that these figures, instructive as they are, and based on official records, do not reach to the root of the question. To solve the problem it will be necessary to go still deeper. The question now presents itself— What part of the profit and minor expense fund is profit and what part expense? Part IV of the Bureau Report for 1890 was entitled "Net Profits in Manufacturing Industries." The tables therein were based upon certified returns from 10,013 manufacturing establishments. As in the present article "Stock" and " Wages" were deducted from the Value of Goods Made," and the remainder became the "Profit and Minor Expense Fund." The following items of expense were returned on the 10,013 schedules: Salaries, rent, taxes, insurance, freight, new equipment, repairs, and other expenses." When the aggregate of these items was subtracted from the profit and minor expense fund, the excess of selling price above cost of production was obtained. This figure was again reduced by allowances for interest on cash and credit capital, for depreciation on machinery, implements, and tools, and for selling expenses and losses by bad debts. Figures to show "expenses" and "allowances" for any year since 1885 are not in existence, and for that reason it is impossible to separate the profit and minor expense fund into its constituent parts. Whether it is advisable to require manufacturers to supply information that will disclose the net profits made by them is a question for the legislative power to consider, but until such information is secured it will be impossible to determine whether such "net profits" are inordinate, or whether labor receives its proper share of the industry product." It is interesting and instructive to note, in conclusion, that during the recent strike in the cotton mills at Lowell, the manufacturers submitted their books to the Board of Conciliation and Arbitration which decided, after the books had been examined by financial experts, that the net profits made by the mills would not warrant them in increasing the wages of their employés. The fact that the plan of arriving at "net profits" was the one adopted to settle the dispute, would seem to prove. the assertion herein before made that the only way to determine whether the industry product is fairly divided between the wage fund and the profit and minor expense fund is to obtain returns of expenses, and thus arrive at the percentage of net profit on the total capital invested. REVIEW OF EMPLOYMENT AND EARNINGS. FOR SIX MONTHS ENDING OCTOBER 31, 1903. The following review presents a summary by industries of the conditions affecting employment and earnings for the six months ending October 31, based upon special reports and comparisons made by agents of the Bureau, relating to the principal industrial centres of the Commonwealth. The statistics of persons employed and of earnings are based upon comparisons of identical establishments for the weeks ending April 11 and October 10, 1903. Boots and Shoes. Demand excellent all over country except in Southern and Western Texas. Domestic trade has fallen off somewhat and foreign market continually growing less. Summer business kept up well to September 1. Business situation not as good as for previous six months-Spring is generally most active season—and, on the whole, trade is not quite up to the corresponding period in 1902, although manufacturers report large duplicate Fall orders and Spring orders coming in well. One manufacturer reports retarded business and inability to obtain help on account of labor troubles. Better grade of counter being used by shoe manufacturers. Establishments are being run on full time and to about 60 per cent of full capacity; wages remain practically unchanged, individual concessions being made and lasters benefiting on the average about three per cent; little change in cost of stock; downward tendency on soles and hides, goat lower, linings higher; selling prices about the same as last Fall; collections only fair, large buyers are slow and small buyers, as a rule, good. Prospects bright. The shipment of shoes from Brockton for the six months ending Oct. 10, 1903, aggregated 290,991 cases against 300,079 cases for the six months ending April 11, 1903, and 292,026 cases for the corresponding period in 1902, the half year ending Oct. 11. The total cases of boots and shoes shipped from Haverhill for the six months ending Oct. 9, 1903, numbered 221,598 as compared with 251,192 cases for the previous six months and 226,847 cases for the corresponding six months in 1902 ending Oct. 11. Building. Less building activity than six months previous and as compared with last Fall there is not so much work in the market. Strikes in the building trades together with the high cost of material have affected building operations adversely. Considerable heavy work in market but little residential work. Greatest activity in municipal and |