750,000, and in six of those years the number exceeded 1,000,000 per annum. In 1914 the number was 1,218,480, of whom 915,007 came from Southern and Eastern Europe. After the war immigration on a large scale again commenced in 1920, the number being further increased in 1921, when, of 805,225 immigrants, 520,654 came from Southern and Eastern Europe. With 3,500,000 unemployed in that year the United States could not continue to absorb so large a new population and by enactment the immigration was limited to 3 per cent. of the foreign-born persons of each nationality residing in the United States at the census of 1910. In 1924 the law was amended to allow 2 per cent. on the basis of the census in 1920. 21. The position is, therefore, that a considerable proportion of the population are either foreign-born or born of foreign or mixed parentage. Apart from the general results of so large and constant additions of aliens to the population of the country there are two other facts which are of importance. In the later years the majority of the immigrants have gone into industrial occupations, and many of them are capable only of unskilled work under direction. 22. Industry has thus been recruited from constantly changing personnel and, in view of the limited number of skilled workers and of workers able to acquire skill, there has been a great incentive to managements to instal machinery and to eliminate skilled manual operations. 23. With so large a supply of new workers available the tendency was to have a constant replacement of workers in the various establishments. This was accentuated by the mobility of the workers. It is not surprising that in a young country like the United States where the pioneer spirit is still strong and society is in a fluid condition, there is generally no such tie to any particular place as is found in Great Britain. Men move freely. from one occupation to another, and from one district to another, imbued with the desire to improve their material circumstances. Moreover, where workers are largely composed of persons of different races mainly actuated by a desire to improve their personal circumstances, the attitude of mind is mainly individualistic, and the task of management in promoting co-operative working is correspondingly difficult. In considering the steps taken in in various establishments to give workers a collective voice in respect of their working conditions, it is necessary therefore to take into account the frequent lack of homogeneity among the workers in an establishment in contrast with the position in Great Britain. Distribution of workers and growth of large units. 24. There is a large number of relatively small manufacturing establishments and a correspondingly large number of employers in the United States. According to the 1923 Census of Manufactures the total number of establishments was 196,309, employing 8,778,156 wage earners, and nearly 50 per cent. of the wage earners were employed in establishments employing from 101 to 1,000 wage earners. 25. The rapid expansion of manufacture in the United States since the beginning of the twentieth century has been accompanied by the formation of large groups in industry. There has been a considerable growth in the size and industrial importance of the larger producing units and the corresponding decline of the smaller producing units. The greatest increase in the proportion of large establishments, their share of wage earners and the value of the product took place between 1914 and 1919, when the War gave a great impetus to manufacture. The significance of the change is shown by the fact that the number of establishments employing more than 1,000 wage earners increased from 648 with 1,255,259 wage earners in 1914, to 963 with 2,112,827 wage earners in 1923. That is to say, in 1923, 25 per cent. of the wage earners in manufacturing industries were employed in less than 1 per cent. of the total number of establishments. The number of establishments whose annual output exceeds $100,000,000 in value comprised in 1923 not more than 5.2 per cent. of all industrial concerns; they employed 57.1 per cent. of all industrial wage earners and produced 66.4 per cent. of the total value of manufactured products. Establishments whose annual output is under $100,000 constituted 68.5 per cent of the total number of establishments, but they employed, in 1923, only 10.4 per cent. of the total number of wage earners engaged in manufacturing, and produced only 6.8 per cent. of the total value of manufactured products in that year. Methods of production. 26. It is upon the large establishments and big industrial groups that attention has been focussed by many investigators and from them that comparisons have been drawn. The conditions in the United States permit of mass production for a wide domestic market. Where these big units are well organised, they are able to distribute their risks over a variety and number of products, to develop wide domestic and foreign markets, and so to reach a higher standard of efficiency in production and distribution than is possible in small businesses. They also permit of great reductions in costs by the adoption of standardised materials, up-to-date machinery, and labour aiding devices. The large establishments are the most outstanding examples of the intensive use of machinery and the subdivision of processes. During the last few years mechanical processes have been introduced to such an extent as to make possible a marked increase in production with no increase in the number of wage earners. while on the other hand there has been a considerable reduction in the average length of the working day. The transition period between the displacement of labour by machinery and the reabsorption of that labour into industry has generally been short owing to the expansion of industry which has taken place concurrently. In many instances provision is made by an employer for the employment of workpeople who are displaced, though not necessarily in the same class or grade of work, until such time as they may be absorbed in their accustomed occupations. 27. One of the factors which has contributed to the concentration on machine production has been the restriction of immigration. The reduction in the number of immigrants has increased the value of their labour and the number willing to perform unpleasant work has decreased. The rapid development of machinery has as far as possible eliminated the human element, particularly on laborious and unpleasant work, and men are now engaged as "machine minders" where they were formerly engaged on labouring work. 28. It must be noted that it is not the skilled artisan who has been converted into a machine minder, although the subdivision of processes has done much to reduce the proportion of skilled artisans employed in the manufacturing industry. We deal later in the Report with the schemes of training which have been introduced in many of the large Corporations in the process of readjustment of the old schemes of apprenticeship. 29. Machine operations are thus largely supplanting individual skill. This is true of a great mass of workers, but at the same time we must not lose sight of the fact that there is a large demand for tool makers and other higher skilled craftsmen. These men are necessary in the planning and in the manufacturing of tools and in the more intricate operations. They are also to be found in the executive functions, such as production engineers and time studymen. Although the proportion of skilled to unskilled workers has decreased, the actual number of skilled men employed in industry has increased and there is a growing demand for skilled men fitted for the higher and more responsible positions. A large proportion of people are not capable of exercising any great degree of individual skill. To this man and woman modern American industry holds out the opportunity of employment and of making good wages by acting as machine minders. In this way industry is able to make use of a large percentage of workers who otherwise would remain in the humble and low paid positions of unskilled labour. The labourer to-day has an opportunity of making good money by acting as a machine help. 30. While, therefore, the simplification of processes in manufacture and the increasing use of machines may tend to introduce a certain amount of tediousness and monotony in factory life, it opens an avenue of advancement to a large section of workers who otherwise would have no opportunity of improving their material position; and it gives to the skilled artisan a better opportunity of applying and developing his peculiar individual skill in the higher branches of engineering and production. 31. The simplification of processes as thus described is to be found largely in mass production. Mass production is generally accompanied by high efficiency. By efficiency in this connection we mean the ability to produce more per machine, or per square foot of floor space, or per productive man-hour, and to make material turn over more rapidly. In other establishments where the product is more diversified and the simplification of processes obtainable in mass production is not practicable, efficiency as above described is possible and is being applied in large and small shops in many branches of industry. In old establisnments, however, saddled with old buildings, where capital expenditure is restricted, much remains to be done in the way of equipment and lay-out of plant. 32. The ability to produce is steadily supported by the progressive employer who does not hesitate to scrap a machine if a new substitute will pay for itself in a reasonable time. But this does not mean scrapping for scrapping's sake. In the course of our visit to a textile factory which was well equipped with the latest machines and devices we came across three or four machines made by a well-known firm in Lancashire and bearing dates 1868, 1872, and 1874, still working. On our calling attention to these dates, the employer said that those machines had been working regularly since they were installed between the years 1868 and 1874, and that they were almost as good as when new and in many respects superior to his more modern machines. These latter were not supplied by the Lancashire firm. Electric Power. 33. Large scale manufacture has been stimulated by the great development in the interconnection and interchange of electric power which is available at a low cost. This has been made possible by the policy of the electrical industry in centralising power houses, connecting transmission lines and distribution. systems, and standardising equipment so as to make the most effective use of power. A generating system which has a surplus of power above its immediate requirements can relieve the load on another generating system through the interconnection, and a breakdown of one station is insured against. The industries of the country are thus provided with a dependable and an efficient service of power at a low cost. We found in one industrial centre in Ohio as low a price as 0.6 cents per kilowatt hour for electricity supplied for industrial purposes; in other industrial centres the price is usually from 1 to 2 cents per kilowatt hour. (The average revenue per unit sold for power purposes in Great Britain is 1.073d. or over 2 cents.) 34. The electric power development has contributed greatly to the introduction of machinery and labour aiding devices, and to greater productivity. The primary horse power installed in manufacturing establishments, including motors run with purchased electric current, has steadily increased from 22,290,899 horse power in 1914 to 33,094,228 horse power in 1923. The average installed horse power per wage earner increased from 3.16 in 1914 to 3.27 in 1923. There has been a great increase in the use of electricity in the home. It is common for workingclass homes to be installed with electricity, and this has in turn contributed to the great development of electric appliances for domestic use, such as electric irons, washing machines and vacuum cleaners. Labour Turnover. 35. The growing shortage of labour, which has accompanied the restriction of immigration, has recently directed attention to the reduction of labour turnover, which is still heavy. Though in some establishments the amount of turnover is negligible it is not uncommon for the number of employees leaving employment in the course of the year, not including workers laid off and re-instated in their jobs, to be over 100 per cent. of the number of workers employed at any one time, and it may be as high as 300 per cent. per annum. The turnover is highest where coloured labour is employed. The installation of machinery and the subdivision of operations by which workers with little training may be employed simplifies the employer's problem in this respect by making him less dependent on the ability of individual workers, and at the same time enabling him to replace workers more easily. Management is realising, however, that a heavy turnover is wasteful, especially under the new methods of production where the displacement of one man affects a whole line of production, and it is the aim of management and organised labour to reduce this economic waste by stabilising employment. 36 Stabilisation of employment is also being affected by measures of co-operation between manufacturers and consumers to reduce seasonal fluctuations and relate productions to demand more evenly over the year. During the War there grew up the practice known as "hand to mouth buying," i.e., maintaining small stocks and budgeting ahead for short periods only. The efficient transport facilities and confidence that goods can be delivered at short notice have resulted in the continuance of this practice, and many observers state that it has contributed greatly to stability of employment and to prosperous business conditions. Output and Individual Efficiency. 37. The increase in productivity of United States industry in the last few years is indicated by the following table which is taken from official sources. Taking productivity per worker in |