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THE U.C.C.QUARTERLY VOLUME 4, NO. 4 FALL 1946 State College—Valuable Asset to North Carolina Industry AIR VIEW OF NORTH CAROLINA STATE COLLEGE, RALEIGH, N. C. wn»n*jnffff FROM PUBLISHED BY UNEMPLOYMENT COMPENSATION COMMISSION OF NORTH CAROLINA V\; APR 1 1947 Qfttev .-„„.-rV ^ PAGE 70 THE U. C. C QUARTERLY FALL, 1946 The U. C. C. Quarterly Volume 4 ; Number 4 Fall, 1946 Issued four times a year at Raleigh, N. C, by the UNEMPLOYMENT COMPENSATION COMM8SSSON OF NORTH CAROLINA Commissioners: Mrs. W. T. Bost, Raleigh; Judge C. E. Cowan, Morganton; C. A. Fink, Spencer; R. Dave Hall, Belmont; Marion W. Heiss, Greensboro; Dr. Harry D. Wolf, Chapel Hill. State Advisory Council: Capus M. Waynick, Raleigh, Chair-man; Willard Dowell, Raleigh; H. L. Kiser, Charlotte; Dr. Thurman D. Kitchin, Wake Forest; Robert F. Phillips, Ashe-ville; Mrs. Dillard Reynolds, Winston-Salem; Mrs. Emil Rosenthal, Goldsboro; W. Cedric Stallings, Charlotte. HENRY E. KENDALL Chairman R. FULLER MARTIN, Director Unemploym't Compensat'n Div. ERNEST C. McCRACKEN, Director Employment Service Div. M. R. DUNNAGAN Editor Informational Service Representative Cover illustrations represent typical North Carolina industries under the unemployment compensation program or related activities. Cover for Fall, lQlfi—Aerial view of North Carolina State Col-lege of Agriculture and Engineering of the Greater University of North Carolina, in West Raleigh, showing a large part of the main college buildings and campus Seaboard and South-ern railway tracks are seen at the right. College property holdings total 2,617 acres, including dairy and livestock farms. A projected expansion program would double the present school facilities for the 4,500 students now enrolled. An article in this issue by Charles W. Daniel, former editor, N. C. State College News Service, explains the ways in which the college contributes to industry in North Carolina. Sent free upon request to responsible individuals, agencies, organizations and libraries. Address: U. C. C. Informational Service, Raleigh, N. C. CONTENTS Page Ernest C. McCracken, Director Employment Service Division 70 College Research Aids States Expanding Industries, by Charles W. Daniel 71 Employment Service Returned to State UCC November 16, by M. R. Dunnagan 73 State Planning to Develop and Expand Industries, by Felix A. Grisette 74 Big Increase in Small Industries in North Carolina, by Silas F. Campbell 76 Identifying and Locating Unemployed in North Carolina, by Hugh M. Raper 78 Unemployed must Seek Jobs to Qualify for Benefits 79 Decided Decrease in Benefit Payments in Fall Months 79 Trends in Covered Employment, Weekly Wages, 1942-1945, by Silas F. Campbell 80 Apprentice Training Being Revived in N. C. Industries, by M. R. Dunnagan 82 Where are the Workers for North Carolina Industries? by Benton Bray 84 Coal Mine in North Carolina Expected to Produce Soon, by Bill Sharpe .. 85 Maritime Workers Covered; Greenhouse Exempt, by R. B. Billings 86 Veterans Refund Allowances in Concurrent Payments 87 Millions Involved in Veteran Readjustment Allowances, by M. R. Dunnagan 88 Unemployment Decreases; Average Weekly Wages Show Increase 90 New Industries 181, Expansions 100, in Six Months, by Bill Sharpe 91 Increase in Small Firms in North Carolina 91 Armed Services Amendment to Social Security Act.... 92 Less Than Two Percent of Veterans Exhausted Allowances . 93 North Carolina in Region IV Has Less Unemployment 95 Federal Agencies Reorganized by Executive Order, Plan 2.... 96 National City Bank Cites Unemployment Problems 98 Marion W. Heiss is New Employer-Member of UCC 99 ERNEST C. M'CRACKEN, DIRECTOR EMPLOYMENT SERVICE DIVISION Ernest C. McCracken, former assistant State di-rector of the U. S. Employment Service for North Carolina, now the North Carolina State Employment Service Division of U.C.C., was appointed State Di-rector to succeed R. Mayne Albright, resigned, and Robert M. du Bruyne, chief of Programs and Methods, succeeded McCracken as assistant State director, both effec-tive October 1, 1946. John Francis Foy, regional director, USES, Washington, announced the ap-pointments. The appointments were made in Wash-ington, but after as-surance that they were acceptable to Henry E. Kendall, chairman of the Un-employment Com-pensation Commis-sion of North Caro-lina, and other State officials, since the USES, under con-gressional direction, was to be (and was) returned to the State UCC on November 16. Mr. McCracken has a splendid background for his new duties. He joined the Employment Service in 1937 as interviewer in the Waynesville office, later was interviewer at Marion, assistant Manager at Asheville and manager at Lenoir. Late in 1940 he was transferred to Raleigh and served for periods as training supervisor, field supervisor and as chief of the Planning Section. Mr. McCracken was called to Washington in 1942 as assistant regional represen-tative of Region IV, during which year he served for a few months as acting State director for the USES in West Virginia. Upon return he served for about a year as assist-ant State director, was commissioned as an Ensign in the U. S. Naval Reserve in August 1943, and was promoted to Lieutenant (jg) during his service of two and one-half years. He was assigned to the Fourth Naval District, comprising Pennsylvania, Delaware and southern New Jersey as assistant to the district civilian personnel director and was sta-tioned at Bethlehem, Penna., most of the time. He resumed his post as assistant State director in Feb-ruary after release from the Navy. Mr. McCracken is a native of Haywood County, a graduate of Western Carolina Teachers College at Cullowhee and spent four years as teacher and prin-cipal in the Waynesville Schools before joining the Employment Service. (Continued on next Page) Ernest C. McCracken FALL, 1946 THE U. C. C. QUARTERLY PAGE 71 College Research Aids State's Expanding Industries By Charles W. Daniel, Former Editor, N. C. State College News Service North Carolina is the richest "deficit" State in the Union. Tobacco taxes alone set the State very close to the top in payment of revenue to the federal gov-ernment. The objective query of an outsider might well be why should this State, with fine mountains and sea-coast, abundant waterways, fine soils and minerals of virtually every type usable, 48,000 miles of good roads and every natural resource to make it self-sufficient, import such high percentages of meat, milk, shirts, engines and a host of other essentials? North Carolina grew up naturally from the time of Virginia Dare's disappearance into a State of pre-dominantly agricultural interests, small towns and small industries. Aside from the tobacco folks, no-body did anything on a scale sufficient to accommo-date consumer demand. Like the streets of Durham, one of the State's larger cities, industries in North Carolina "just happened," most of them without benefit of basic research. Research developed the atomic bomb, the girdle with the two-way stretch, the electric light and just about everything else useful today. It can develop North Carolina resources sufficiently to make the State essentially independent of imports from other States. North Carolina and the South today are "deficit" States and behind the times in industrial develop-ment primarily because of the absence of research and trained research personnel. ERNEST C. MXRACKEN, DIRECTOR EMPLOYMENT SERVICE DIVISION (Continued from Page 70) Mr. du Bruyne, new assistant State director, also came up through the ranks of the Employment Ser-vice. He joined the UCC late in 1937 as a claims interviewer at Rockingham and served later as field investigator in Asheville. After transfer to the Em-ployment Service, he served as manager of the Le-noir, Fayetteville and High Point local offices, and was promoted to field supervisor and area director for the War Manpower Commission. Mr. du Bruyne was transferred to the State office in August, 1943, as chief of placement and has served as assistant State Director, and Acting State Director, following Dr. J. S. Dorton's resignation as WMC State director and pending Mr. Albright's return from military leave. UCC Chairman Kendall expressed entire satisfac-tion over appointments of Mr. McCracken and Mr. du Bruyne to key positions in the Employment Ser-vice and the assurance of continued close cooperation after the USES returned to State control on Novem-ber 16. State College is one of the few seats of industrial and business experimentation in the State. Projects are now being conducted by the research arms of the Engineering and Textile schools of the college which give promise of opening new avenues to small Tar Heel industry and of creating the attraction which could draw new manufacturing concerns to North Carolina. The efforts of the college to promote North State industry are not confined to research. Recently a high-paid official of Westinghouse Electric, impress-ed by the performance of five young employes who had just graduated from State College with engineer-ing degrees ,determined to send his son to the West Raleigh institution. The efforts of Engineering Dean John H. Lampe, and Textile Dean Malcolm E. Campbell are bent to turn out such well-trained graduates as to awaken manufacturers in other states to the fact that North Carolina is the state with both the facilities for training highly skilled workers and the facilities for the production of finished goods. The engineering school attracted 2,000 students in September. The textile school, already by far the largest in the world, attracted 500. Foremost among research projects at the college in engineering, textiles and agriculture are those aimed to benefit small industries already struggling for a foothold at home. The relatively small staff of research workers must first establish continuous re-lationships with the operators of small industry. They must discover the production problems of the small operator and then proceed to help him with his problems. (Continued on next Page) „w* \, 4 Diesel Engineering Building. State College PAGE 71 THE U. C. C. QUARTERLY FALL, 1946 Among college projects in this category are lab-oratory efforts to improve textile machine design; to develop improved methods of drying brick ; to de-termine the ignition point and burning rate of plas-tics ; to test the burning characteristics of domestic fuel oils; to discover a more sanitary means of dis-posing of both municipal and industrial wastes in the State's streams ; and, to use the institution's more than $3,000,000 worth of diesel machines and equip-ment to plug the State at the most likely spot on the Eastern Seaboard for the manufacture of diesel engines. Heading the laboratory efforts in textile machine design is Dr. Clarence M. Asbill, Jr., creator of num-erous cotton processing machines and the holder of many patents. The college's modernistic laboratory has recently been enhanced with surplus army equip-ment bought at Seymour Johnson Field near Golds-boro. Dr. Asbill is confident that new and far-reach-ing developments in textile machinery are not far away. Dr. W. W. Kreigel and Martin Parcel are working on a project designed to speed up the drying process for structural clay products. Brick production is a fast-growing enterprise in the State. Many opera-tors now have machines capable of cutting and dress-ing 300,000 brick daily. However, the average kiln is capable of drying only 70,000 brick daily. The work, intended to bring the drying capacity up to the cutting peak, is being conducted with infra-red rad-iation. The scientists admit that this is a tough one. In chemical engineering, D. S. Weaver, Jr., is searching for a simple, rapid and accurate method of determining the ignition point and the burning rate of various plastic materials. The world use of plastics has become so extensive as to lend great significance to this job. Among the more common commodities to be affected by any findings are movie film and table tops. The Navy has conducted incon-clusive research on this problem. The American Society for Testing Materials is providing financial backing for the tests. The only piece of industrial research financed by a private business at State College is being pursued by W. F. Morris, Jr., for the Texas Company. It is to test the burning characteristics of different types of domestic fuel oils. Morris' investigation has never been attempted before although similar research has been made by other oil companies. Oil company forecasters say that within a short period, the de-mand for fuel oil will double that for gasoline. One big and obvious reason for this conclusion is the rapid turn by virtually all trunk rail companies to the use of diesel engines as opposed to the old coal-burners. First in this connection is the Seaboard which already has 32 passenger diesel units, 44 EMC (twin-engine) freight units and one large Baldwin engine, which is heavier than both sections of an EMC-powered unit. Officials of the railroad said that the company intends to become entirely diesel-ized as fast as tracks can be conditioned to accommodate the weight. Here, according to Professor R.B.Rice, head of the Diesel Engineering School at State college, is where the school, with its more than $3,000,000 in diesel equipment comes in. There is not a single diesel manufactur-ing plant on the Eastern Seaboard (aside from the Sun Shipbuilding Com-pany at Chester, Pa., which builds only custom engines for the Sun ships). The State has the sea coast, the facilities, Memorial Tower, State College the manpower, and now, the means of training neces-sary personnel to build these oil-burning engines which are coming into greater use everywhere. Raleigh is a middle point on the north-south rail run from New York to southern terminals. It could logically become a diesel maintenance center for all the big railroads which run through the city: Sea-board, Atlantic Coast Line and Southern. When the railroads first began using diesel power, special maintenance men and mechanics were hired to ride the trains. That maintenance system still stands. The American Society of Refrigerating Engineers has called upon Dr. E. M. Schoenborn, head of the Department of Chemical Engineering, to investigate "heat transfer as affected by frost and ice" in an attempt to develop more efficient refrigerating ma-chines. Ice and frost formations in refrigerators reduces efficiency. Work on the job will begin this fall. J. A. Rolston, in metalurgical engineering, is con-ducting research into the relative merits of metal surfaces in soldering to make joints. He will at-tempt to discover what surfaces take solder best and make better joints. Little if any work of a purely scientific nature has been completed in this country on soldering, a vital consideration in construction and repair with metals. Local and branch office personnel of the North Carolina State Employment Service Division of UCC made 153,453 reception contacts with the public dur-ing December, 1946, which included three holidays, at the 78 offices and about 80 itinerant points. This was an increase of 31 percent over December, 1945. The personnel made 13,584 referrals of job seekers to jobs and verified 7,202 placements on jobs, an in-crease of 16 percent over December, 1945. Of total placements, 2,854 were of veterans and 303 were of disabled veterans. FALL, 1 946 THE U. C C. QUARTERLY PAGE 73 Employment Service Returned to State UCC November 16 By M. R. Dunnagan, Informational Service Representative ployment Service remain under Federal control until June 30 1947, at least, to take care of the readjust-ment, placement of returning veterans, and proper balancing on a national basis of the labor force. Con-gress was insisting on the return of the Employment Service to the several states. One amendment, a rider on another measure, was enacted by Congress, providing for the return earlier in 1946. President Truman vetoed the bill. Later Congress provided for the return of the Employment Service on Novem-ber 16, a compromise date, and President Truman signed this measure. Soon after its nationalization the U. S. Employ-ment Service geared itself for the task of finding and supplying workers for the numerous war plants that sprang into existence almost overnight. Among its earlier tasks, some in advance of its nationalization, was providing labor for the many war forts, camps and bases constructed in North Carolina, including Fort Bragg's enlargement, Camp Davis, Camp But-ner, marine bases at Camp Lejeune and Cherry Point, and numerous other smaller projects. Shipyards, airplane plants, precision machine shops, rubber plants and others in this State, as well as similar and other strategic types of operations in other states, called upon the U. S. Employment Ser-vice for workers. Many thousands were recruited and transported to war jobs within and outside North Carolina, which was looked upon as a labor supply state—with a surplus of labor to be channelled into urgent projects. Soon after the Employment Service was national-ized the War Manpower Commission was set up and this Commission soon took over the USES as its main operating agency. The WMC set up controls which took labor from less essential and placed it in more essential operations, set ceilings on the numbers of workers in all industrial plants and channelled work-ers into war activities where they could do the most good in support of the war effort. Through all of this the USES was the strong right arm of the WMC. Its tasks were to implement and seek to enforce the war-time regulations of the WMC, collect data, on the basis of which labor marked areas were set up showing shortages or surpluses of labor, contracts were awarded or withheld and renewed or terminated. These studies involved determinations as to amounts and types of labor available, housing, transportation, food supplies, sanitary conditions, and many other factors in every community in the State. The USES in North Carolina did a magnificent war job and modestly accepted the praise and plaud-its of regional and national officials, industrial lead-ers within and outside the State, labor organizations and that large segment of the public generally which had occasion to know of its activities. Piloting the USES in its early days of war acitvity was R. Mayne Albright, who had been appointed to (Continued on Page 95) The Employment Service is back with the State UCC as a coordinate division, along with the Unem-ployment Compensation Division, after almost five years as a Federal agency, the United States Employ-ment Service. The return of this division to the State agency became effective as of November 16, as the result of congressional action last summer. Historically, the Employment Service is older than the UCC. The Wagner-Peyser bill was enacted by Congress in 1933, setting up a public employment service on a nation-wide scope but with State par-ticipation. This Employment Service superceded the National Reemployment Service, which had been set up primarily as an agency to place unemployed and needy workers on public works projects during the depression years following the 1928 debacle. Capus M. Waynick, formerly of High Point, now of Raleigh, was State director of the National Reemployment Service in North Carolina. The General Assembly of North Carolina, in 1935, appropriated $75,000 a year to match Federal funds provided in the Wagner-Peyser Act for establishing a State-wide public employment service system through local employment offices at key points throughout the State. Mrs. May Thompson Evans, now an assistant in the Headquarters office of the USES, as assistant director of the National Reem-ployment Service, was instrumental in securing the passage of the bill providing for State participation under the Wagner-Peyser Act and became the first State director of the agency, then known as the North Carolina State Employment Service. In December, 1936, the North Carolina General Assembly, in special session, enacted the State Un-employment Compensation Law, which set up the Unemployment Compensation Commission of North Carolina and incorporated the North Carolina State Employment Service in the agency as the Employ-ment Service Division, coordinate with the Unem-ployment Compensation Division. When the Em-ployment Service was first established, it was under the direction of the U. S. Department of Labor and so continued until 1939, when it was placed under the Social Security Board. Soon after Pearl Harbor, President Franklin D. Roosevelt issued an executive order, effective Jan-uary 1, 1942, combining the Employment Service agencies in the 48 states and three Federal units into a national agency, the U. S. Employment Service, on the ground that this service could function more efficiently as a national unit than it could as 51 sep-arate units. In messages to the 48 State Governors, President Roosevelt asked that the 48 State Employ-ment Service units be turned over to the Federal Government for the duration of the war. The Gov-ernors agreed, placing the transfer on a loan basis, the Employment Service units to be returned to the States after the war was over. President Harry S. Truman asked that the Em- PAGE 74 THE U. C. C. QUARTERLY FALL, 1946 State Planning to Develop and Expand Industries By Felix A. Grissette, Managing Director North Carolina State Planning Board The statute creating the North Carolina State Planning Board defines its functions as follows: "That it. shall be the function and duty of the State Plan-ning Board to make studies of any matters relating to the general development of State or regions within the State or areas of which the State is a part, with the general pur-pose of guiding and accomplishing a co-ordinated, adjusted, and efficient development of the State. Upon the basis of such studies, and in accordance with the present and fu-ture needs and resources the board shall present, from time to time, reports, plans, maps, charts, descriptive mat-ter and recommendation relating to such conservation, wise use and planned development of the material and human resources of North Carolina as will best promote the health, safety, morals, order, convenience, prosperity and welfare of the people of the State." The act further specifies that the Board shall con-sist of nine members, appointed by the Governor, as follows : Five members to be chosen from State officers or heads of departments or boards, one of whom shall be the Director of the Department of Conservation and Development; at least one repre-sentative from the University of North Carolina, and the remaining members to be chosen from among the other citizens of the State. The members of the Board shall hold office during the pleasure of the Governor, and all vacancies shall be filled by the Governor, when and as they may occur. The Gov-ernor designates one member to serve as chairman and the Board elects one of its members to serve as secretary. Employees of the Board are appointed by it and responsible to it. D. Hiden Ramsey of Asheville is Board chairman and R. Bruce Etheridge is secretary. Felix A. Gri-sette has served as managing director since the Board began its full-time activities early in 1944. Other members are : W. F. Carr, Durham ; Harry B. Cald-well, Greensboro ; Irving F. Hall, Raleigh ; Robert M. Hanes, Winston-Salem; George W. Kane, Rox-boro ; Dr. Howard W. Odum, Chapel Hill ; Capus M. Waynick, Raleigh. A careful study of the functions of the Board, as defined in the above quotation from the statute creat-ing it, indicates that it has almost unlimited author-ity in matters relating to the general development of the State. The present Board has felt from the out-set that this authority implied a great responsibility. In attempting to fulfill this responsibility, the Board formulated an eight-point program of policies which should guide its activities, as follows : 1. In all matters of policy, it must be borne in mind that the legislative act which created the Planning Board specified that it would be "an advisory agency of the State." 2. In so far as possible, the planning projects which the Planning Board may advocate should be executed by the departments, divisions, agencies, and institutions most directly concerned. The extent to which the Planning Board can stimulate and encourage and facilitate this planning within other agencies rather than to attempt them itself should constitute the final measure of its value to the State. 3. A logical complement of this policy of encouraging planning within existing agencies would be that the Planning Board serves as the coordinator in those pro-jects which cut across departmental lines. If a pro-ject involves two or more State agencies, as it fre-quently will, the Planning Board should serve as the liaison between the public and the agencies involved. 4. The policy of stimulating other agencies to execute planned projects should presuppose a willingness and ability on the part of the Planning Board to render every possible assistance. Research information not now available, for instance, would be a service for which the Planning Board should assume responsibility. 5. The policy of stimulating other agencies to do the actual planning does not remove entirely the possibility that the Planning Board should undertake projects in its own right. The responsibility implicit in its all-inclusive objectives demands that it undertake such needed projects as cannot be executed in some exist-ing agency. 6. In keeping with this policy of collaboration, the activities incident to the establishment and operation of local planning boards should be undertaken in co-operation with local officials and all interested local lay groups. 7. Because of staff and budgetary limitations, the Planning Board should limit its activities to a comparatively few projects. Concentrated effort in a few fields would seem preferable to scattered attempts in many direc-tions. 8. Subject to the limitations of its main objectives, the Planning Board should concentrate on these projects designed to meet the problems that will likely confront the State in the immediate postwar period. In attempting to perform the functions for which it was created, consistent with the above statement of policies, the work of the Board, since it was set up on a full-time basis early in 1944, can be divided roughly into four general classifications : I. To serve as a coordinating agency. II. To aid and encourage organized planning at the community level. III. To serve as a research, fact-finding, information agency in all matters relating to North Carolina. IV. To make recommendations in behalf of a greater North Carolina, based on the needs of the people of the State. A brief review of the high spots in these four fields of activity will serve to make clear what the Board is attempting to do. I. A COORDINATING AGENCY Many segments of State life cut across depart-mental lines. Many important fields of endeavor are partially the concern of several departments or in-stitutions without being the exclusive responsibility of any one such agency. This situation creates a demand for one detached objective agency to serve FALL, 1946 THE U. C. C. QUARTERLY PAGE 75 as a coordinator in order that duplication of effort may be avoided and in order that no important ac-tivity shall be overlooked. The Board conceives its responsibility to include this function and it has proceeded accordingly. Much of this coordinating function is effectuated by the use of committees rep-resenting all interests involved. Examples of such coordinating committees, all of which are actively at work in their respective fields, are: The Committee on Resource-Use Education, which Gov-ernor Cherry has pronounced as possibly the most im-portant ever appointed in the history of the state. The Committee on Services for Children and Youth The Committee to Promote Rural Industries The Committee on Agriculture The Committee on Public Works The Committee on Tourists and Travel The Committee on Education The Committee on Health The Committee on Public Welfare The Committee on Recreation The Industry Advisory Committee The Committee on Taxation The Committee on Art, Literature and Music The Committee on Community Planning Committees on transportation and housing will probably be appointed in the near future. Approx-imately 300 state officials and other prominent cit-izens serve on these committees. //. LOCAL PLANNING North Carolina communities are urged to create local planning agencies to perform the same func-tions at the community level which the State Board attempts to perform at the State level. Emphasis on this phase of the program of work is predicated on the premise that North Carolina will become a STATE PLANNING BOARD Photo taken in office of Governor R. Gregg Cherry, seated left, with As-sociate Justice E. B. Denny, seated right, irho administered the oath of office to the members. Members, left to right, are R. Bruce Etheridge, director. Department of Conserva-tion and Development, secretary; 1>. Hiclen Ramsey, general manager. Asheville Citizen-Times, chairman ; William F. Carr, Durham. Hosiery Mills and Mayor of Durham ; George W. Kane, building contractor, Ro.r-boro: Harry B. Caldwell. Greens-boro, secretary. N. C. Good Health Association ; Felix Grisette, Raleigh, managing director; Irving F. Hall, president State Capital Life Insur-ance Co.. Raleigh; Capus M. Way-nick, director. N. C. Social Hygiene society. Absent member is Robert M. Hemes, president. Wachovia Bank x Trust Co.. Winston-Salem. greater State only to the extent that its communities become greater, that North Carolina in the final analysis is nothing more nor less than the sum of the counties, cities, and towns within its borders, that if localities can solve their local problem the State's problems will largely disappear. There are now 75 local planning agencies of one type or other throughout the State, and the number is increasing regularly. Assistance is rendered these groups by means of staff visitations and consulta-tions, providing a clearing house of information, periodic reports on what other communities are doing, statistical and research assistance, etc. Typ-ical types of assistance rendered local groups follow : "An Over-All Survey of the Needs and Opportunities of Cleveland County" A similar survey in Guilford County (These surveys are intended to serve as guides for other counties) The publication of an outline of a suggested model type of local planning set-up A published report showing population changes in all North Carolina counties since 1940 A printed compilation of basic statistical data on each county A survey of those resources in each county and com-munity which best lend themselves to the attraction of industries and tourists The need and value of this service to North Carolina communities recently prompted Governor Cherry and the Council of State to make available the necessary funds to enable the Board to establish a full-fledged community planning department. As a result of this action, Mr. Edward A. Conover, a com-munity organization consultant of wide experience, (Continued on Page 96) PAGE 76 THE U. C. C. QUARTERLY FALL, 1946 Big Increase In Small Industries In North Carolina By Silas F. Campbell, Director Bureau of Research and Statistics, UCC of N. C. The enviable position of North Carolina with re-spect to stability of its industries and employment is well known. Even during the depression period the ratio of the number on relief rolls to the labor force of the State was approximately 20 percent below the average for the Nation, just as the ratio of employ-ment has been shown to be over a score of years. Its employment is centered largely in production of consumer goods, the demand for which remained strong throughout the period between World War I and World War II. This demand was accelerated during the second war and continues at an even higher level. Serving as a reservoir of labor for war industries, a considerable portion of the State's labor force was lost to other States during the war. The pre-war level of available labor has not yet been restored, though the total non-agricultural labor force for the first time since 1941 reached 700,000 in March, 1946. Many of its manufactures are of the low grade type, since the State fails to take advantage of the opportunity to embrace the final processes of manu-facture in many of its important products, it loses the opportunity to employ workers at higher skill levels and at relatively higher wage levels. Con-sequently, the average per capita weekly wage in North Carolina remains about a third less than the National average, although this average has in-creased from $17.44 per week in 1940 to $31.10 in 1945. The result of these low wage levels doubtless affects the disinclination of North Carolina workers to return to the State with the present wage differ-ential that exists between this and other States. Notwithstanding these handicaps, North Carolina industry was probably less adversely affected by war and demobilization than any other State in which war production was not especially concentrated. There was a general feeling at the beginning of the war that the small operator would be seriously handi-capped and have to go out of business as a result of the war, the reason being : 1. That he would not have sufficient capital or equipment to take large war contracts. 2. That he was not engaged in a type of business considered essential to the prosecution of the war. 3. That the materials he would require for opera-tion or sale would be so restricted that he could not continue to operate. 4. That the skilled labor so employed would be needed, and would find more attractive wages, in essential war jobs. These things all materialized, yet studies which have been based on sizes of firm data do not support the theory that the small employer in North Caro-lina has fared badly on the whole because of war conditions. An analysis made of the fourth quarter of 1942, which was the peak year of employment in North Carolina during the war period, indicated that the number of covered employers of fewer than 100 workers in 1942, was 9236 or 11.9 percent more than in 1940. By the fourth quarter of 1945 the number of em-ployers of fewer than 100 workers had increased to 10, 514, a gain of 2, 261, or 27.4 percent, from 8253 in 1940, notwithstanding the increase in the total number of employers from 1940 to the fourth quarter of 1945 had been only 15.7 percent. In other words, while the total number of covered employers was in-creasing from 9,848 in 1940 to 11,391 during the fourth quarter of 1945, the number of employers with fewer than 100 workers increased from 8,253 to 10,514. It will be seen, therefore, that of the total gain in covered employers of 2,543, 2,261, or 88.9 percent represented employers with fewer than 100 workers. Bringing the figures up to date with respect to all types of employers, it is found that the total number of covered employers has increased from 9,848 in 1940 to 12,790 covered employers during the month of August, 1946, a total increase of 2,942 establish-ments, or 29.9 percent. It is noteworthy that this in-crease of 29.9 percent in business establishments in North Carolina occurred during a period when there was a National decline. A recent report of the Census Bureau indicated that during the war years this de-cline in new establishments reached a total of 15 percent and, while there has been some increases at the National level during the past twelve months, it is estimated that the number is still approximately 12 percent below the pre-war level, while North Carolina is nearly 30 percent above. While the total covered employment in the State has not reached the war level, it was only 7.8 percent below during the second quarter of 1946, the average number being 545,000 as compared to 591,391 for the year 1942, the peak year of the war, and was 16.7 percent above 1940. INDUSTRY TURNOVER 19U2-19U6 There was considerable industry turnover through-out the war period. During the fiscal year 1942- 1943, 943 establishments retired or had their cov-erage terminated. During the fiscal year 1943-1944 the retirements numbered 926. Turnover increased as the end of the war approached. The number re-tiring during the fiscal year 1944-1945 rose to 1,120, and during the fiscal year 1945-1946 increased to 1,216. This is a total of 4,205 establishments, repre-senting 164,719 employees. The reasons why they retired are set forth as follows : Of the total of 4,205 firms, 1,330 ceased operations in the State; 128 firms merged with other covered employers ; 46 firms moved to other areas ; 217 firms were liquidated; 7 closed down temporarily because of seasonality and were later reactivated ; 627 had (Continued on Page 94) FALL, 1946 THE U. C C QUARTERLY PAGE 77 INDUSTRY TURNOVER IN NORTHCAROLINA—FISCAL YEARS 1944-1946 ACCESSIONS FISCAL YEAR TOTAL BIENNIUM RETIREMENT FISCAL YEAR TOTAL BIENNIUM INDUSTRIAL CLASSIFICATION 1944-1945 1945-1946 1944-1946 1944-1945 1945-1946 1944-1946 No. Firm , Emp. No. Firm Emp. No. Firm ; Emp. No. Firm i Emp. No. Firm > Emp. No. Firm i Emp. 1,02!) 30,300 2,070 07,830 3,705 98,142 1,120 50,683 1,216 53,090 2,336 103 773 Agriculture, Forestr. * Fishing 2 27 9 101 11 188 5 119 5 119 7 2 132 29 7 4 132 56 5 119 5 119 Forestry 2 27 16 283 31 1,351 47 1,634 47 1,160 23 1,256 70 2,410 1 62 2 1 28 119 29 1,203 3 1 43 181 29 1,424 1 17 1 17 Crude-Petroleum & Natural-Gas Production 15 221 46 1,143 23 1,256 69 2,399 98 2,954 378 9,127 476 12,081 92 14,886 93 12,981 185 27,867 20 18 54 496 1,597 861 169 57 152 4,573 2,426 2,128 195 75 206 5,069 4,023 2,989 25 19 48 1,347 11,928 1,611 23 21 49 3,872 7,537 1,572 48 40 97 5,219 19 465 3 183 Manufacturing - 391 19,533 876 34 , 202 1,267 53,735 361 17,840 444 25,940 805 43,780 1 35 2 54 13 213 29 3 4 5 7 5 270 718 2 11.499 904 3,320 833 13 111 207 1,041 158 121 1 111 5 202 49 626 134 6 15 10 10 36 13 5 1 1 24 2 16 270 3,637 42 28,567 2,303 9,423 5,072 19 126 501 1,085 784 290 150 15 65 .542 17 683 1 38 40 2,031 1 74 1 111 24 439 09 4 7 8 17 3 12 1 40 76 3 148 30 413 105 3 8 6 5 29 8 5 1 1 16 2 11 2,919 40 17,068 1,339 6,097 4,239 78 87 294 44 026 169 150 15 05 329 17 626 36 1 35 7 214 27 2 5 3 3 12 2 1,497 3 528 Tobacco Manufactures Textile-Mill Products - 5,741 962 5,799 1,526 58 138 378 1,030 231 89 42 76 17 225 42 2 2 2 5 5 1 10 1 7,384 1,196 5,037 2,213 57 34 70 52 226 24 7,189 8 13,125 2 158 10 830 3 739 115 172 448 1 082 457 113 7 231 Nonferrous Metals and their Products 8 Electrical Machinery Machinery (except Electric) 8 213 5 1 6 116 00 173 12 165 17 1 11 281 00 Miscellaneous Manufacturing Industries. - . _ 5 57 5 214 387 Transportation, Communication and Utilities 03 1,348 106 1,028 169 2,976 79 4,917 45 1,049 124 5,960 3 17 20 1 2 14 143 575 47S 10 13 129 6 42 38 54 742 519 9 59 04 1 16 13 197 1,317 997 10 138 147 170 1 26 16 14 1,500 405 3 26 15 1 42 710 287 10 4 52 31 1 56 2,210 Other Transportation Except Water 692 10 Services Allied to Transportation N. E. C __ 5 2 13 125 18 170 Telegram and Telephone and Related Services 35 1 2,975 23 35 1 2,975 Utilities : Electic and Gas 23 Wholesale and Retail Trade __ 341 4,300 948 14,800 1,289 19,100 370 8,230 423 7,258 793 15,488 Full-Service and Limited-Function Wholesalers Wholesale Distributors, Other 48 50 4 21 14 19 3(1 48 97 4 659 420 58 288 128 221 497 579 1,437 19 142 170 26 71 31 121 70 135 109 4,220 1,263 321 2,105 302 1,455 1,153 1,494 2,376 45 190 220 30 92 45 1411 100 183 200 11 4,885 1,083 88 380 173 301 003 2,073 3,813 30 38 27 2 21 22 15 34 79 12S 4 2,619 394 487 469 301 336 546 742 2,234 42 57 34 9 20 18 27 44 OS 133 7 1,057 309 171 820 205 558 908 1,007 2,095 68 95 61 11 47 40 42 78 147 261 11 3,676 703 Wholesale and Retail Trade Combined, N. E. C. . . 658 1,289 Retail Food and Liquor Stores 566 894 Retail Apparel and Accessories 1.514 Retail Trade, N.E. C .__ 1 , 749 4,329 110 Fiance, Insurance and Real Estate 10 127 70 1,330 86 1.457 29 255 75 1,293 104 1.548 4 2 16 18 11 17 1 1 30 5 240 098 100 179 10 2 4 19 24 11 20 1 1 30 29 201 706 160 259 10 2 4 3 24 15 8 4 2 11 2 10 39 13 45 20 138 4 21 60 2 16 1 39 19 49 255 939 268 Insurance Carriers 984 20 Real Estate 3 80 6 1 89 10 227 10 Service Industries 102 1,728 258 5,237 300 6,965 137 3,276 113 3,313 250 6.589 Hotels, Rooming Houses, Camps 15 57 1 1 3 o 10 276 1,129 55 6 6 28 22 136 28 119 16 4 16 14 13 22 8 2 7 9 048 2,303 201 712 204 177 141 387 107 31 308 18 43 176 23 5 17 17 15 32 8 3 10 11 924 2,432 256 718 210 205 163 523 107 61 345 21 28 68 8 3 5 3 617 1,781 268 13 40 25 17 96 837 2,476 45 164 8 3 5 3 1,454 Personal Services 4,257 268 Employment Agencies and Commercial and Trade 13 40 Miscellaneous Repair Service and Hand Trades 25 14 o 1 4 1 180 3 30 318 1 14 2 1 4 1 180 3 1 3 2 30 37 3 30 Other Professional and Social-Service Agencies 318 Nonprofit Membership Org 1 PAGE 78 THE U. C. C. QUARTERLY FALL, 1946 Identifying and Locating Unemployed In North Carolina By Hugh M. Raper, Supervisor, Reports and Analysis, Bureau of Research and Statistics Who are the unemployed? What industry groups pensated dropped from 5412 in July to 3873 in Sep-are they separated from? tember, a 28.44 percent decline. Where are they located? About 27,200, or 32 percent of the weeks com- . , . ,, TT ., , pensated during the quarter were for unemployed In this period when employment in the United m^ &nd almogt two.thirds of this number lost States is at its peak, and at a time when North Caro- WQrked in ^ manufacturing industries, with the lina covered employment approaches the 1942 high ^ number ated from the Textile Mm level, it seems appropriate to examine the unem-products group and the Transportation Equipment ployment situation to learn something of the con- Manufacturing Group which includes ship-building ditions which account for the presence of more than and aircraf t tg duction The only other size. 28,500 individuals in our employment offices m an aWe (g 3g3) were a ated from employ_ ^28 1 q4fi nng W^ ^ g P ment not covered by the Unemployment Compensa-be ' tion Act, i.e. agriculture, non-covered employers of In order to understand this anomaly, a study has less than 8 workers, etc. During the months corn-been made of the payment activity of the Unem- prising the quarter the number of payments to males ployment Compensation Commission in the Admin- dropped from 10,917 weeks in July to 7,327 in Sep-istration of its program and of the readjustment tember, a 32.88 percent decline. allowance program. During the third quarter of In a consideration of the unemployment situation 1946 unemployed workers under the Unemployment it is well to locate tne areas wnere the unemployed Compensation Program were compensated for 84,990 are foimd since the answer to unemployment is em-weeks of unemployment, receiving approximately ployment opportunities. To get this picture in the $985,000 in benefit payments. Unemployed veterans proper perspective, the following table relates weeks under the Readjustment Allowance Program re- of unemployment compensated to number of cov-ceived during the third quarter payments for more ered workers by areas. than 320,000 weeks amounting to more than $6,400,- n . , 000.00. RZk1 Average No. No. of Weeks Compensated UNEMPLOYED UNDER U. C. PROGRAM Arca Covered Compensated to Covered workers \ird. (J. workers in For the sake of clarity, it is best to consider the two in 19^5 1946) 1946 programs separately in terms of the queries stated Coastal 66 500 23 140 34.80 above. Of the 84,990 payments made under the un- PiedmontZZZZZZZZZ!." 364 ,'500 45 ,'580 12.50 employment compensation program, 57,785, or 68 Jf oun f ta c in ----- 9^00 9.376 10.08 , i , „ , i T , . „ Out-of State : 9,500 6,886 72.48 percent, were made to female workers. It follows then that about 7 out of 10 of our unemployed The unemployment situation in the Coastal Area is workers are women. To get at the type of women largely the result of the seasonal nature of the tobac-workers unemployed, a study has been made showing co processing and fertilizer industries which con-the industry from which they were separated. It is stitutes a sizeable portion of covered employment of found that 86.5 percent of the female workers un- this area. The resumption of tobacco processing employed and in payment status were engaged in a operations in the latter part of the quarter brought manufacturing industry or in the wholesale and re- about a 92 percent drop between July and September. tail trade group. More specifically the analysis re- The 72.48 ratio of weeks compensated to out-of-state veals that almost 60 percent of the female unem- covered workers is partially explained by the fact ployed receiving payments were separated from one that most of the workers coming into the state during of the following three industry groups : (1) Industry the war period were used in positions requiring 21, Tobacco Manufacturing which includes the stem- highly specialized skills for which little employment mery workers of tobacco companies (5,410 workers) ; opportunity now exists and the fact that during the Industry 50, Full-Service and Limited Function year more than 15,000 out-of-state workers actually Wholesalers, including the processing of leaf tobacco were engaged in employment in this State. by other than the manufacturers (14,302 workers) ; Generally the unemployment situation is on the and, (3) 14,364 female workers separated from Tex- down-grade, and the fourth quarter picture will tile Mills of all kinds. likely show a drop from the third quarter in weeks An examination of the unemployment figures by compensated and amount paid of as much as 20 per-months leads one to believe that most of the unem- cent- btThP ^nf w!3'Processing field were at work UNEMpL0YED UNDER READJUSTMENT by the end of September for in July compensation to , TT nw A ATrj7, wnrvA m these separated workers covered about 14000 weeks ALLOWANCE PROGRAM while in September less than 1300 weeks were com- During the Third Quarter unemployed veteran pensated, a decline of 92.4 percent. In the Textile claimants were compensated for 322,468 weeks of Mill products field the weeks of unemployment com- unemployment and the payments to these veterans FALL, 1 946 THE U. C. C. QUARTERLY PAGE 79 UNEMPLOYED MUST SEEK JOBS TO QUALIFY FOR BENEFITS The G. I. Bill of Rights and the State UCC law pro-vide, among other requirements, that an unemployed individual shall be eligible to receive benefits with respect to any week only if the State Unemployment Compensation Commission finds that he is able to work and is available for work. The Commission, as explained by Chairman Henry E. Kendall, has adopted the policy that to be available for work an unemployed individual must actively seek work on his own initiative, in addition to the requirement that he must register for work each week with the Employ-ment Service. When a claimant, veteran or regular UCC claimant, first applies to the UCC claims taker for veteran allowances or benefits under the regular UCC pro-gram, he is advised by the claims taker that it is his duty to seek employment on his own behalf, as well as to report in person to any jobs which he Employ-ment Service may have to offer him. If or when a claimant has drawn benefits for an extended period of continuous unemployment, then he may be considered as having eliminated himself from the labor market and the claims taker, under Chairman Kendall's instructions, is directed to in-quire into what steps he has taken on his own initiative to find a job, submitting the dates, names and address of employers he may have contacted and the results of his effort to find work. The claims taker, if not entirely convinced that the claimant has actively sought work, as reported, will seek to con-tact the employer to verify statements made by the claimant and record his findings. Cases of claimants who do not convince the claims takers of their efforts to find work are to be referred to UCC claims deputies who will conduct investiga-tions and make determinations Unless good reasons exist for failure of claimants to seek work actively, then, in accordance with Chair-man Kendall's statement of policy, claimants will be considered to have withdrawn themselves from the labor market and therefore, are not available for work, in which cases allowances and benefits will be halted, pending final dispositions of the cases. amounted to $6,427,995.00, slightly under the pre-vious quarters' payments. It is seen that veterans unemployment during the quarter accounts for al-most four times as much unemployment as that ex-perienced by other workers. The quarterly figures, however, do not show a true picture of the veterans unemployment situation in that a considerable improvement was made in the quarter which carries on into October the first month of the fourth quarter. A comparison of the payment activity for the first twenty-one days of each of the last four months gives a picture of the downward trend in veterans unemployment, The table including data for Oc-tober, 1946 follows : DECIDED DECREASE IN BENEFIT PAYMENTS IN FALL MONTHS A definite decrease in unemployment in North Car-olina in recent weeks, of both veterans and non-vet-erans, is reflected in the drop in checks issued for servicemen's readjustment allowances and regular unemployment benefits. Veterans' claims for unemployment allowances re-sulted in the issuance of 24,193 checks for the week ending June 22. By the week ending August 10 this number had increased to 25,190, the peak, while for the week ending October 5, the number of checks issued to unemployed veterans had decreased to 17,- 647, representing a drop of about 30 percent from the peak. Unemployed workers in the regular UCC program filed claims resulting in the issuance of 11,120 checks for the week ending June 22, dropping to 5,264 by the week ending August 10. By the week ending October 5, only 4,062 checks were issued, a drop to slightly more than one-third of the number issued during the peak week ending June 22. Incidentally, seasonal tobacco workers were largely responsible for that peak, which levelled off when the leaf tobacco season started. In case of self-employed veterans who are not avail-able for referral to jobs, 24,954 claims were filed in May and the number in July was 26,956, the peak. In September 17,804 claims were taken, a drop of 34 percent from July. Self-employed veterans, since more than 90 percent of them are farmers, showed a further decided drop in the fall, since many of the farm crops reached the market and the incomes of these farmers exceeded the $100 a month, up to which figure the U. S. Govern-ment supplements the self-employed veteran's in-come. %Change %Change Period Weeks From Prior Amount From Prior Compensated Month Month July 1-21 79,003 -4.17 1,578,260 -4.07 August 1-21 78,205 - 1.02 1,561,467 - 1.06 September 1-21.. 66,786 -14.60 1,333,038 -14.63 October 1-21 39,314 -41.13 784,653 -41.22 For the most part the unemployed veterans have not been employed following their discharge from the service. In fact a recent study shows that less than 20 percent of the unemployed veterans have had em-ployment following their discharge. For this reason it follows that the cause of the unemployment of veterans is one of adjustment or an eventual absorp-tion into some field of employment that most nearly fits his requirements. In viewing the veterans unemployment situation it is significant to note that unemployment allowances under the Readjustment Allowance Program may protect the continuously unemployed veteran up to 52 weeks following his discharge, while the pro-tection given to workers under the U. C. Program (Continued on Page 94) PAGE 80 THE U. C C. QUARTERLY FALL, 1946 Trends In Covered Employment, Weekly Wages, 1942-1945 By Silas F. Campbell, Director, Bureau of Research and Statistics As in World War I, employment in North Carolina during World War II reached its peak about a year earlier than in the country as a whole. This is at-tributable to the fact that North Carolina produced largely consumer goods to equip the army and supply allied nations. The construction of cantonments and military bases necessary for training troops was also concentrated in this area. As early as 1941, covered employment in North Carolina for the first time exceeded half a million workers, and in 1942 reached a peak of 591,391, with more than 600,000 during four months of the year. From this point there was a downward trend which was accentuated by the release of approximately 70,000 war workers in August, 1945. Despite this layoff following V-J day July was the low month of 1945 with 509,352 covered workers. The depressing effect of war contract cancellations was only temporary- By September employment had increased to 527,527, and the year ended with 539,180 in December. Since July 1945 the trend has been consistently upward. The average for the second quarter of 1946 was approximately 540,000. Although this is 11,000 below the average for 1944, it is 14,000 above the average for 1945, with many employers unable to hire much needed labor. By the second quarter of 1946 employment was only 8.7 parcent below the highest war level. EMPLOYMENT TRENDS BY INDUSTRIES Although there was a general decline in covered employment from 1942 to 1945 of 11.0 percent the level of employment in 34 industry groups was higher in 1945 than in 1942. Only in Mining and Construction was there a decline in all sub-divisions of the industry. Both Agriculture and Forestry showed improvement, as did eleven of the sub-divisions of Manufacture, four divisions in the Transportation, Communication and Public Utilities group, six in the Wholesale and Retail Trade group, two in the Financial group and nine out of twelve in the Service industries. In two of the major war industries in this State, Ordnance and Electrical Machinery manufacture, employment was at a higher level in 1945 than in 1942. Ordnance manufacture was just getting under way in this State in 1942, the average number em-ployed that year being only 769. It reached a peak of 20,487 in March 1944, from which point it de-clined to 396 in December 1945, but with an average for the year of 6,258. Only 61 workers were employed in the manufac-ture of electrical machinery in 1942. However, the manufacture of electrical apparatus for aircraft and ordnance brought employment up to 6,004 in July 1945, with an average for the year of 3,574, only 287 workers being employed in December, 1945. The increased demand for automobile tires and a let up jn the restrictions on rubber brought an in-crease in employment in the manufacture of rubber products, largely tire recapping, of 494.8 percent in 1945 over 1942, or from 134 workers to 797. The strain on Street Railway Service was con-siderably relieved by increased employment of 235.5 percent in 1945 over 1942, while employment in Bus and Taxi Service increased from 2,705 workers in 1942 to 4,465 in 1945. Wholesome gains were also made in Wholesale Trade, with nominal increases in employment in Re-tail General Merchandise and Automotive Establish-ments, while employment in Eating and Drinking Establishments increased by 47.7 percent. In the Finance group, banks and investment com-panies experienced increases in employment of 28.5 and 21.4 percent respectively. INCREASE IN SERVICE INDUSTRIES There was increased employment in nearly all Service industries. The greatest relative increase was in Trade Schools, which were virtually abolished during the war. Employment in Business Services increased by 33.0 percent, in Personal Services by 16.1 percent, and in Amusement and Recreation in-dustries by 19.7 percent. Employment in Educa-tional Institutions also increased by 11.8 percent. Among the industries in which employment de-clines occurred, Construction suffered the greatest loss in volume, with a decline of 74.9 percent, re-presenting a layoff during the period 1942-1945 of 42,111 workers. Employment in Mining also declined by 21.5 per-cent. Other industries suffering employment de-clines in excess of 25.0 percent are, Stone, Clay and Glass, 26.3 percent; Nonferrous Metals, 28.8 per-cent; Petroleum and Coal Products, 100.0 percent; Water Transportation, 62.9 percent; Lumber and Building supplies, 41.1 percent; Credit Agencies, 37.7 percent; Real Estate Agents, 41.8 percent; Profes-sional Service, 87.9 percent, and Non-Profit Organi-zations, 73.2 percent. The result of these fluctuations was that employ-ment in Agricultural Services increased by 66.1 per-cent; Mining declined by 21.5 percent; Construction, by 74.9 percent; Manufacture by 8.4 percent; Fi-nance, Insurance and Real Estate by 6.1 percent; while Transportation, Communication and Public Utilities increased by 2.6 percent; Trade by 10.5 percent; and Service Industries by 5.4 percent. TRENDS IN WAGES BY INDUSTRIES Only in the Construction sub-group of general contract work was there a decline in the average per capita weekly wage between 1942 and 1945. This was occasioned by the layoff of large numbers of highly skilled workers employed in 1942 in the con-struction of army bases, and here the decline in average weekly wages was only a tenth of one per-cent. (Continued on Page 97) FALL, 1946 THE U. C. C. QUARTERLY PAGE 81 TRENDS lft COVERED EMPLOYMENT AND AVERAGE WEEKLY WAGES 1942-1945 TOTAL ALL INDUSTRIES. AVERAGE EMPLOYMENT 1942 591,391 1945 526,357 Percentage Change 11.0 AVERAGE WEEKLY WAGE 1942 23.75 1945 31.10 Percentage Change + 30.9 Agriculture Forestr. and Fishing. 01 and 07 Agriculture 08 Forestry 09 Fishing. ___ ____ .__. 322 535 470 59 6 + 6G.1 + 72.2 + 78.8 18.42 18.67 16.18 29.64 29.51 31.32 23. S4 + 60.9 + 58.1 + 40.4 Mining. 3,557 2,791 - 21.5 20.83 30.08 + 44.4 10 Metal Mining 12 Bituminous and other soft-coal Mining 14 Noninetallic Mining and Quarrying. _ Contract Construction. _ _ 15 Building Construction-General Contractors. 16 General Contractor Other than Building 17 Construction Special Trade Contractor 123 23 3,411 56,214 40,322 7,884 8,008 107 22 2,662 14,103 6,678 2,394 5,031 - 13.0 - 4.3 - 21.9 - 74.9 - 83.4 - 69.6 - 37.2 21.67 25.04 20.78 37.59 32.96 28.79 27.77 37.98 40.28 29.64 36.51 32.94 38.47 40.32 + 75.3 + 60.9 + 42.6 + 15.6 - .1 + 33.0 + 5.2 Manufacturing. ,*7!l 354,191 - 8.4 22.92 19 Ordance and Acessories -- 20 Food and Kindred Products 21 Tobacco Manufactures.. 22 Textile-Mill Products 23 Apparel and other finished Products made from Fabrics. 24 Lumber and Timber Basic Products 25 Furniture and Finished Products 26 Paper and Allied Products 27 Printing Publishing and Allied Products 28 Chemicals and Allied Products 29 Products of Petroleum and Coal 30 Rubber Products. 31 Leather and Leather Products 32 Stone, Clay and Glass Products 33 Iron and Steel and their Products. 34 Transportation Equipment (Except Autos) 35 Nonferrous Metals 36 Electrical Machinery 37 Machinery (Except Electrical) 38 Autos and Auto Equipment .._ 39 Miscellaneous Manufacturing Industries 709 14,485 20,243 236,522 8,767 30,893 28,721 6.84S 3,409 5,456 21 134 1,648 3,889 1,750 15,766 1,429 61 3,379 1,042 647 6,258 15,065 23,965 204,953 7,873 23,524 27,038 6,344 3,428 5,644 797 1,586 2,867 2,211 12,050 1,017 3,574 3,479 1,579 939 +713.8 + 4.0 + 18.4 - 13.3 - 10.2 - 23.9 - 5.9 - 7.4 + .6 + 3.4 -100.0 +494.8 - 3.8 - 26.3 + 26.3 - 23.6 - 28.8 + ' + 3.0 + 51.5 + 45.1 32.01 24.39 26.58 21.71 16.63 14.75 21.58 34.00 33.03 25.00 26.00 27.40 24.10 21.04 31.68 45.12 34.17 22.02 32.81 26.29 16.77 31.13 40.89 32.37 34.34 29.47 23.67 21.75 27.33 45.23 41.88 34.80 31.13 32.64 30.04 39.88 58.39 45.49 35.18 38.88 39.72 23. s» + 35. + 27.7 + 32.7 + 29.2 + 35.7 + 42.3 + 47.5 + 26.0 + 33.0 + 26. S + 39.2 + 13.6 + 35.4 + 42. + 25.9 + 29.4 + 33.1 + 59.8 + 18.5 + 51.1 + 42.5 Transportation, Communication and Other Public Utilities. 23,277 23,879 + 2.6 29.27 37.37 + 27.7 4 1 Local Railways and Bus Lines 42 Trucking and Warehousing for hire 43 Other Transportation Except Water 44 Water Transportation 45 Services allied to Transportation N. E. C 46 Telephone and Telegraph 48 Utilitices: Electricity and Gas 49 Local Utilities and Public Services, N. E. C 197 8,488 2,705 143 426 5.412 5,891 15 661 6,776 4,465 53 548 5,942 5,422 12 +235.5 - 20.2 + 05.1 - 62.9 + 2S.6 + 9.8 - 8.0 - 20.0 27.06 24.14 34.19 5.84 20.24 28.56 32.10 20.50 36.31 34.69 42.41 31:00 27.49 34.82 40.58 31.91 + 34.2 + 43.7 + 24.0 +430.8 + 35.8 + 21.9 + 26.2 + 55.7 Wholesale and Retail Trade. 85,416 94,397 + 10.5 22.17 29.60 + 33. 50 Full-Service and Limited Function Wholesalers 51 Wholesale Distributors other than Full-Service and Limited-Function Wholesalers. 52 Wholesale and Retail Trade N.E.C.. 53 Retail General Merchandise 54 Retail Food and Liquor Stores 55 Retail Automotive 56 Retail Apparel and Accessories 57 Retail Trade, N. E. C 58 Eating and Drinking Places 59 Retail Filling Stations 15,369 12,408 3,264 22,873 6,874 5,371 5,079 8,806 4,456 916 20,647 13,816 1,921 24,649 6,541 5,587 4,960 8,962 6,583 731 + 34.3 + 11.3 - 41.1 + 7.8 4.8 4.0 2.3 1.8 47.7 20.2 25.73 36.44 26.08 13.98 18.06 27.52 17.21 25.22 13.53 22.17 Fianance, Insurance and Real Estate. 10.378 9,741 - 6.1 34.62 33.19 41.49 32.09 20.31 26.46 40.93 27.25 32.23 18.99 31.55 43.05 + 29.0 + 13.9 + 23.0 + 45.3 + 46.5 + 4S.7 + 5S.3 + 27. S + 40.4 + 42.3 24.4 60 Banks and Trust Companies 61 Security Dealers and Investment Brokering 62 Finance Agencies, N. E C 63 Insurance Carriers Ii4 Insurance Agents, Brokers and Services. 65 Real Estate . 66 Real Estate, Insurance LoansLaw Offices: Any Combination. 67 Holding Companies (except Real Estate) 2,848 137 879 1,707 319 1,353 132 3 ,457 176 548 ,372 286 788 111 3 21.4 28.5 37.7 7.1 10.3 41. S 15.9 34.33 49.87 33.87 39.12 36.53 18.34 30.33 28.24 Service Industries. 25.34S 26,720 + 18.89 70 Hotels, Rooming Houses, Camps 72 Personal Serv ices 73 Business Services, N. E. C 74 Employment Agencies and Commercial and Trade Schools.. 75 Automobile Repair Scrvce and Garages 76 Miscellaneous Repair Service and Hand Trades 78 Motion Pictures -— 79 Amusement and Recreation and Related Services, N. E. C 80 Medical and Other Health Services 82 Educational Institutions and Agencies. _ ._ 83 Other Profession and Social-Service Agencies and Institutions. 86 Nonprofit Membership Organization. 4,460 11,791 1,050 43 773 S5S 2,792 930 644 34 1,289 672 4,491 13,685 1 405 108 842 920 3,343 941 622 38 156 169 + .6 + 16.1 + 33.0 + 151.2 8.9 + 19.7 1.2 - 3.4 + 11.8 — 87.9 - 73.2 12.31 14.69 34.59 18.21 23.40 36.23 19.96 16. OS 18.35 19.81 44.89 28.04 40.69 S5.02 40.84 40.56 39.04 26.92 46.65 46.92 23.30 18.77 20.82 42.26 27.80 34.90 39.46 22.53 20.16 24.54 25.02 45.51 45.20 + IS. 5 + 70.5 + 20.6 + 19.0 + 6.9 + 46.8 + 53. + 66.1 + 23.3 + 52.5 + 41.7 + 22.2 + 52.7 + 49.1 + S.9 + 12.9 + 25.4 + 33.7 + 26.3 + 1.4 + 61.3 No. covered employment in 1942 No. covered employment in 1945 PAGE 82 THE U. C. C. QUARTERLY FALL, 1946 Apprentice Training Being Revived In N. C. Industries By M. R. Dunnagan, Informational Service Representative Apprentice training, second only, in point of time, to house work as a method of developing skilled artisans, is experiencing a revival in North Carolina since V-E Day, after almost complete stoppage during the active war period, due, in large measure, to the provisions of this type of training in the G. I. Bill of Rights. It is a matter of record that King Solomon started the work on his great Temple with 33,000 apprentices, men who became fellowcrafters and later master workmen as their skills increased. History reveals that many of the best known in-dividuals of all time served their apprenticeships and went on to carve their names high in the records of world accomplishment. Michael Angelo started his training at the age of 13. Rembrandt was apprenticed as an architectural painter. William Caxton, Eng-land's first printer, was an apprentice. In America, it is revealed that Benjamin Franklin, at a tender age, was apprenticed to a printer in Bos-ton. Paul Revere served an apprenticeship to become a silversmith before he made his famous ride. The late Walter Chrysler, and William S. Knudsen, mod-ern figures, were apprentices. Even in North Caro-lina one shining example of the success of apprentice training is former Governor and now U. S. Senator Clyde R. Hoey who served his time as "printer's devil" in Shelby and Charlotte before becoming a successful publisher. Although apprentice training for higher skills has been in vogue longer than history records, it has been neglected in recent years, to such an extent that the skilled artisans have been passing out of the picture more rapidly than they have been recruited, leaving many unfilled places. Just as the nation is now realizing that it must sponsor reforestation and land reclamation to prevent denuded forests and lands, it is also realizing that apprentice training must be supported and encouraged to keep alive the skills it requires years to master. Congress, in its wisdom, has seen fit to foster and assist in apprentice training, specifically for return-ing war veterans, through the G. I. Bill of Rights. The Veterans Administration provides for allowances of $65 a month to a single veteran or $90 a month to veterans who are married or have dependents, in addition to contract wages paid by the employer. Al-so, the veteran receives tools needed in the perfection and completion of the trade as he and his employer agree he should have. This is one of the recent evidences that the people of the United States are recognizing that much of the nation's wealth and power is due to the ingenuity and the skill of its craftsmen, and one of the steps taken to encourage its younger men, and especially returning war veterans, to enter training to take the places of the rapidly depleting ranks of artisans in many sorely needed skills. The 1940 Census revealed that at that time the skilled labor force in the entire nation was only 5,400,- 000 persons. To maintain that force, with no allow-ance for expansion, it would require that 105,000 ap-prentices complete their apprenticeship training each year Since four years may be considered an average period for such training, it would require that 420,000 apprentices should be in training at any given time, with no allowance for turnover, in order to keep the normal ranks filled. During the war period, it was found that the nation was woefully lacking in skills of proper types to pro-duce its machines, guns, tanks, airplanes, ships and other war demanded equipment. It became neces-sary, in many instances, to "break down" the skills and divide up the work so two or three men could perform the duties of one skilled artisan. That was another reason for the realization that it would be necessary to encourage and support the apprentice training program in order to develop more skilled craftsmen to supply the requirements of the nation. North Carolina, for several years, has had a splendid apprentice training law and program. Under the law and under direction of the State Apprentice-ship Council which it created, minimum standards, conforming to Federal standards, have been set up. All apprenticeship programs must meet minimum re-quirements as to pay, hours, working and other con-ditions. A standard form of indenture, or agreement, is entered into by the employer and the apprentice, with approval by the State Apprenticeship Council. North Carolina's apprentice program is operated as a division of the State Department of Labor. For-rest H. Shuford, State Commissioner of Labor, is chairman; George Coggins, State Director of Trade and Industrial Education, is vice-chairman, and Clar-ence L. Beddingfield is State Director. Management and Labor are equally represented in the Council's membership. Labor members are E. D. Faires, Char-lotte; Harry G. Waynick, Greensboro, and E. T. Dorrity, Winston-Salem, and the management mem-bers are A. J. Fox and L. P. Kennedy, Raleigh, and R. M. Kerman, Wilmington. In addition, the Federal Government has in North Carolina under the U. S. Department of Labor and working with Ernest C. McCracken, State Director of the United States Employment Service in North Caro-lina, an area supervisor, R. E. Paschal, with head-quarters in the Caswell Building, Raleigh, and two field representatives, J. B. Archer, Charlotte, William M. Chisholm, Winston-Salem. Mr. Paschal with the two field representatives and Mr. Beddingfield co-operate in activities throughout the State. They pro-mote apprentice training, prepare standards for each type of training and offer a follow-up service in an advisory capacity with apprentices and employers. They do not dictate, but consult with employers as to FALL, 1946 THE U. C. C. QUARTERLY PAGE 83 their relations with apprentices, and are available for help or suggestions when called upon. During the past eighteen months, due to the im-petus given the program by the provisions for help under the G. I. Bill of Rights, the field representatives and Mr. Beddingfield have had approved and certified (by December 31) about 450 North Carolina firms as suitable for giving apprentice training, with an av-erage of four apprentices each. In practically all cases, or as the employer and the apprentice may agree, school training is offered to apprentices' co sup-plement their mechanical training. Chief distinctions between apprentice training and vocational training is the difference in time required for the training and the extent of the skills achieved. In apprentice training, the time required for mastery of a skill varies from two to as high as seven years. In vocational training or education the time required is usually two years, or even less in some cases re-quiring more modest skills. For example, it requires seven years to master the skills required of a die sinker and five or six years to develop an efficient printer or compositor. Many individuals can be-come reasonably proficient as clerks or sales persons within six months or a year. More than 100 different types of skills are avail-able for apprentice training in North Carolina and the numbers will be extended as more of the many firms which are now qualified to give this class of training are certified and approved for giving training in skills required in their plants In fact, it can be said that in practically any industry in operation in the State some type of skill is used and can be acquired through apprenticeship training. A few readily recognizable industries in which sev-eral types of skills are needed every day and every hour include textiles, in which loomfixers, machinists and general maintenance mechanics are required; dairying, which requires refrigeration mechanics and millwrights ; railroads, needing machinists, elec-tricians, carpenters, steel and iron workers, foundry-men, plumbers, steam fitters, blacksmiths and boiler workers. These examples could be multiplied many times. In the list of more than 100 types of skills which are available or can be made available are practically all of those which are in demand in North Caroina and which must be developed to meet the demands of post-war development in the State Alphabetically this list, subject to change, follows : Airplane mechanic, artificial limb maker, asbestos worker, automotive mechanic, baker, barber, book-binder, blacksmith, boatbuilder (small wooden), boil-ermaker, brace maker, general ; brickmason or brick-layer, business-machine mechanic, butcher, cabinet-maker, carmen, railroad ; carpenter, carpenter, ship ; cement finisher, chef or cook, compositor or printer, coppersmith, coremaker, cosmetician, dental tech-nician, designer, die ; designer, tool ; diamond sawyer, diamond lopper, diamond brilliandeerer, die maker, die sinker, draftsman, dressmaker (custom) ; Electrician : aircraft, construction, industrial, WILL DEPRESSION GIVE SOCIAL SECURITY TEST? (Editorial, The Raleigh (TST.C.) Times, November 13, 194G) Assertion by Social Security Commissioner Arthur J. Altmeyer that this country has seven billion dol-lars on hand to fight any possible depression is heartening in most ways, if somewhat discouraging in its basic premise that a depression in the near future really is possible, and perhaps probable. At a time of peak employment like the present, Social Security payments have come in for substan-tial criticism on the ground that they have encour-aged voluntary unemployment, with a consequent decrease in production. Yet, a substantial number of the recent Social Security disbursements have actually been necessary, and those who have drawn unemployment compensation payments needlessly will suffer later, if and when a recession or depres-sion takes shape. Social Security, like other Federal agencies, is supported by taxes, and unlike some other agencies is at present showing that all the money paid in by the taxpayer is not going to finance current govern-mental functions. The operations of Federal agencies are highly ramified, and not always understandable to the man in the street, yet the wisdom of building up an ade-quate Social Security fund should be apparent to everyone. Personal and national prosperity alike suffer their ups and downs, and the only way to pre-pare for the future is to accumulate funds in a time of comparative prosperity. Perhaps the future will show that contributions to Social Security at the present level are too high, yet the only wise policy is one of deliberate overestima-tion. If and when a new depression comes, Social Security will get a practical test, and a guide to changes in the system can be established on the basis of actual facts, rather than untested theories. maintenance, lineman; electroplater, elevator me-maintenance, lineman ;electroplater, elevator mechan-ic, engineer, wood treating; engraver, glass blower (nonmechanical), glazier, glove cutter, table; gold-smith, instrument maker, instrument mechanic, iron worker, structural ; iron worker, ornamental ; jeweler, jog builder, joiner, lather, metal; lather, wood; lead burner, lens grinder, linoleum, carpet and soft tile layer ; loom fixer ; Machinist : aircraft, automotive, marine, railroad, shipyard; meat cutter, mechanic, maintenance; mill-man, millwright, model maker (jewelry, aircraft, etc.), molder, mold maker, jewelry ; motor repairman, electric ; operating and stationary engineer ; painter, paperhanger, patternmaker (metal-wood), pipefitter, plasterer, plumber, pressman, printing; radio repair and service mechanic, refrigerator, rigger, sewing machine mechanic (garment industry) ; Sheet metal worker: aircraft, automotive, con-struction, industrial, shipfitter, shipwright, ship lofts- ( Continued on Page 93) PAGE 84 THE U. C. C. QUARTERLY FALL, 1946 Where Are The Workers In North Carolina Industries? By Benton Bray, Former Director, Reports and Analysis Division, Employment Service Division Where can we find workers to man our new textile plant? Is there available space in your town for a shirt factory? Do you have enough trained loopers to open a new hosiery mill? Can we staff a plant employing two thousand people by the first of the year? All these questions represent the post-war cry of both old and newly established industrial firms in North Carolina. Never before in this State's economic history has there been such a degree of ex-pansion. Not only are North Carolina firms and capital interested in this State's economic future but also outside interests are looking toward this State for future plant sites. This means that Chambers of Commerce, trade associations, enterprising civic leaders and, in general, all those who are interested in the growth and welfare of North Carolina are desirous of the latest labor information. It is a well established fact that North Carolina has certain definite factors, as tobacco, cotton, electric power and capital, to offer industry. But the questionable factor today is the quantity and trained quality of the ever-fluctuating labor force in North Carolina. Realizing the necessity of giving to industry the best possible information, the Employment Service has adopted as one of its cardinal points in the post-war program that of furnishing labor market infor-mation. During the war, labor market information was in general treated "confidential" and rightly so. Now these valuable data are and must be given to the employers, civic and local planning groups, schools, labor unions, and other government agencies. This means that the Employment Service is placing the problem of furnishing labor information to the pub-lic on a plane equal to the placement of job applicants and the furnishing of special services to veterans. Likewise, as a part of the cooperation between the Employment Service, United States Department of Labor, and the various states in the establishment and maintenance of the national system of public employment offices is the development and main-tenance of labor market information. One of the standards of operations by the states of the employ-ment offices is the maintenance through the state administrative offices and the local offices of effective labor market information. This information is to be analyzed and issued publicly for the information of all people on current labor market developments, on employment trends, and on the opportunities for em-ployment. It naturally is good business for this government agency to furnish to the public, and especially the in-dustries of this State, valuable and reliable informa-tion that cannot be collected and disseminated profit-ably by private interests. By furnishing this in-formation, this agency is able to build up good will and prove to North Carolina that it is the primary objective of the Employment Service to render what-ever aid is possible for local industry. How is it possible that the Employment Service can secure such valuable information? There are, at this time, 78 employment and claims-taking offices in North Carolina. These offices touch every county, every town in North Carolina. The people in these offices are professionally trained to know economic-ally and realistically their areas. Into these offices yearly more than two million people go requesting job information, filing claims for Unemployment Compensation, asking for veteran information, and seeking jobs. In one month more than three hundred employers will visit these offices to talk labor prob-lems. It is from these offices that the State admin-istrative office of the Employment Service secures labor market data and it is back in these many local communities that the Employment Service personnel use the accumulated economic information. Through the cooperation of approximately four hundred employing units in North Carolina, repre-senting a quarter of a million workers, the Employ-ment Service every two months secures labor trend reports. These reports show employment data for: the current month, two months previous and antici-pated employment in two, four, and six months. Also, from these reports it is possible to gain such labor facts as turnover, the uses of female and non-white workers, as well as the transportation, housing, and salary problems. From these ES-270 reports the Agency is able to analyze scientifically and to picture graphically the status of employment by industry, by months, and by areas. News letters, commonly known as Labor Market Digests, are prepared periodically by the local offices. These letters reveal on a single page the supply, de-mand, and related problems of labor in the area. The basis of these letters are the active files of job appli-cant, of labor trend data, of job openings, and of the other significant economic factors in the community. Besides collecting and analyzing these data and issuing the reports, there are often special studies relating to the problems and requirements of the day. These studies may reflect industrial labor prob-lems (currently the construction industry) or they may picture the movement of labor between areas. This agency hopes that to a degree through its labor market information it will be possible for all persons interested in North Carolina's future to re-main awake, alert, and attuned to the daily chang-ing pattern of not only the State's but also the na-tion's labor problems. The successful continuation of our democratic system of free enterprise depends in a large manner on a well informed people. During Senate debate on the Full Employment Bill, several Senators asked on the floor in effect "What does liberty mean to a man whose wife and children are hungry?" Patrick Henry must have turned over in his grave.—Senator Joseph H. Ball. 4 FALL, 1946 THE U. C. C. QUARTERLY PAGE 85 Coal Mine In North Carolina Expected to Produce Soon By Bill Sharpe, Director, State Neivs Bureau Large-scale development of the Deep River coal field, located eight miles from Sanford, appears im-minent. Development will be by Walter A. Bledsoe Coal Company, of Terre Haute, Indiana, and its asso-ciates in this venture, John Marshall and associates, successful coal mining organization of Scranton, Pa., which operates under the name of Greenwood Mining Company. The major portion of the proven Deep River field has been acquired, either by outright purchase or lease, by the Bledsoe Company, which is the third largest coal producing organization in the United States. Work has started in the field and it is ex-pected that within a few months 500 tons of coal a day will be produced from the old Carolina Slope, which is located in the heart of the field. Entrance of the Bledsoe Company, with its experi-ence and record of accomplishment, in the Deep River field is hailed as marking a real milestone in the industrial development of North Carolina. In-dustrial engineers of the State have keenly felt, in the past, a lack of a closeby source of fuel. Coming of the Bledsoe interests climaxes more than three years of intensive effort on the part of the Depart-ment of Conservation and Development, to bring about large-scale operations, by an experienced coal mining company, in the field. During the past two years, while the Bledsoe Com-pany was formulating its plans for a North Carolina project, the State has been visited many times by W. S. Webster, vice president and general manager of Walter A. Bledsoe and Company, and several top engineers of the company. In 1943 a special survey of the coal field was made by the H. A. Brassert Company and C. C. Morfit, of New York, coal consulting engineers, employed by the Department of Conservation and Development. They filed a report showing the Deep River field had an indicated reserve tonnage of 46,000,000 tons of coal. Since that time, core drilling tests by the Unit-ed States Bureau of Mines and the Bledsoe Company, participated in by the N. C. Division of Mineral Re-sources, confirmed these estimates and indicated even greater reserves. The Deep River coal deposits have been mined intermittently and largely unsuccessfully since be-fore the American Revolution. In 1925, in the midst of perhaps what was the most successful financial venture, 53 miners were killed in a mine explosion which rocked the communities of Cumnock and near-by Gulf. Two years later, while convict labor was being used in the mine, there was a less serious disas-ter, following which the Carolina Slope and other operations in the field were abandoned. In 1942 the Coal Products Company of Sanford, then a newly organized corporation, started pumping out the old workings as the initial step toward put-ting the mine back in production. For various rea-sons this operation lagged and full production was never reached. Its interests have been taken over by the Bledsoe Company. Tests run by the United States Bureau of Mines show that Deep River coal has a B. T. U. content of 14,200, and, if the coal is coked, will yield 22 gallons of tar per ton, and 30 pounds of ammonia sulphate per ton, a "content comparing favorably with the well-known Freeport, Pa., coal." The Brassert re-port says the coal has good coking properties, is suitable for domestic and other fuel uses, and that a "relatively large number of by-products" can be recovered. The coal occurs in two seams, sandwiching a layer known locally in the Sanford area as "black band." This black band is largely composed of iron carbon-ate and phosphorous. In early operations the "black band" was mined along with the coal, and the com-posite was difficult to use, resulting in a definite local prejudice against it which was not altogether dispell-ed, locally, by successful tests in the fire boxes of locomotives on the famous, State-owned "Mullet Line" Railroad operating between Goldsboro and Morehead City. Combustion engineers, however, report that with proper separation the Deep River coal makes an ex-cellent fuel, suitable for most usages. The Brassert report confirms this and further points out that with utilization of modern mining methods and installa-tion of modern safety equipment a mine in the Deep River coal field is no more hazardous than coal mines in any other fields. The field lies in three counties—Chatham, Moore, and Lee. Present operation plans of the Bledsoe-Marshall group call for enlargement and modernization of the old Carolina Slope as presenting the quickest produc-tion possibilities. A certain amount of supervisory personnel, experienced in coal mining, is now being brought in from other coal mining areas. There should be considerable employment, however, for local labor. Large scale mining operations in the field is expected to revitalize the towns of Gulf and Cumnock, particularly the latter, and will be felt even in Sanford. Unemployment compensation is based on the phil-osophy that employment, not unemployment, is the goal to be attained.—Ohio Supreme Court in Harvey Chambers Case. One of the outstanding needs oi' the present is nation-wide realization that the time for talk and subtle maneuvering has passed and we must get down to work.—L. Ray Buckendale. PAGE 86 THE U. C. C. QUARTERLY FALL, 1946 Maritime Workers Covered; Greenhouse Workers Exempt By R. B. Billings, Senior Attorney Two topics which we propose to discuss relating to the administration of the unemployment compensa-tion program in this State may be of some interest to subject employers and covered workers at this time. These are : (1) Coverage of maritime workers under the Un-employment Compensation Law in consequence of the recent amendment to the Federal Unemployment Tax Act passed by the Congress wherein the services of officers and members of the crew of a vessel operating on navigable waters of the United States were brought within the definition of employment as set forth in the Federal Act. (2) An interpretation of "agricultural labor" with respect to services performed by individuals in greenhouse operations as set forth in a recent opin-ion rendered by the Commission during August of this year. MARITIME COVERAGE Prior to August 10, 1946, the Federal Unemploy-ment Tax Act specifically excluded from the defini-tion of employment in the Act, service performed as an officer or member of the crew of a vessel on the navigable waters of the United States. This was equally true of the Unemployment Compensation Law of North Carolina, except in the section of the North Carolina Law excluding from coverage this type of service, there was a proviso which in effect included such service in covered employment from and after the effective date of any amendment to the Federal law which would include this type of service under the coverage of the Federal act. On the date above mentioned, the Congress of the United States passed an amendment to the Federal Unemployment Tax Act, effective July 1, 1946, wherein the several states are permitted to tax ser-vices of officers or members of the crew of a vessel operating on the navigable waters of the United States, if the operations of the vessel are ordinarily and regularly supervised, managed, directed, and controlled from an operating office maintained by an employer in the particular state. This permission is subject to the conditions (1) that such service, for the purpose of wage credits to the employees, is treated in the same manner as other services, and (2) that the same limitations apply which pertain to the rights of the states to require contributions from Federal instrumentalities. The provision in the North Carolina Act referred to above, automatically brings within the definition of employment contained in the law those services which the amendment to the Federal Unemployment Tax Act brought within the definition of employment under the Federal statute. Therefore, a person who is maintaining an operating office in this State from which the operations of an American vessel on the navigable waters within or within and without the United States are regularly supervised, managed, directed, and controlled, is liable to pay contributions under the Unemployment Compensation Law with respect to wages earned by the officers or members of the crew of such vessel. The fact that this particular type of service per-formed by officers or members of the crew of a ves-sel operating on the navigable waters of the United States is brought within the provisions of the defini-tion of employment as contained in the Unemploy-ment Compensation Law of North Carolina does not in any manner change the requirements under the law with regard to the minimum number of workers and the number of weeks in which such individuals must perform services before an employer becomes liable under the Act for contributions on wages earn-ed by them. The citizenship or residence of either the employer or the individual performing the ser-vice is immaterial insofar as the service being "em-ployment" is concerned. Service must be performed either within the United States, or on or in connec-tion with an American vessel under a contract of service which is entered into within the United States or during the performance of which the vessel touches port in the United States. Service perform-ed by a member of a crew or other employee, whose contract of service is not entered into within the United States, and during the performance of which the vessel does not touch a port within the United States, does not constitute employment, notwith-standing similar services performed by others on or in connection with the vessel may constitute employ-ment. Certain services are excepted from employment under the amendment. Services performed by an employee which are performed on or in connection with a vessel, not an American vessel, are exempted if the employee is employed on or in connection with such vessel when outside the United States. The term "American vessel" is defined by the law as be-ing any vessel documented or numbered under the laws of the United States, and includes any vessel which is neither documented or numbered under the laws of the United States nor documented under the laws of any foreign country, if its crew is employed solely by one or more citizens or residents of the United States or corporations organized under the laws of the United States, or of any state. Services performed by an individual in the catch-ing, taking, harvesting, cultivating, or farming of any kinds of fish, shellfish, (for example, oysters, clams, and mussels) Crustacea, (for example, lob-sters, crabs, and shrimp) sponges, seaweeds, or other aquatic forms of animal and vegetable life are excepted. These exemptions extend to services per-formed as an officer or member of the crew of a vessel, which vessel is engaged in any such activity, whether or not the officer or member of the crew is himself so engaged. These types of service men-tioned are not excepted from coverage if such ser- FALL, 1 946 THE U. C. C. QUARTERLY PAGE 87 vices are performed in connection with a vessel of more than ten net tons, the tonnage to be determined in the manner for determining the registered ton-nage of merchant vessels under the laws of the Unit-ed States. It is further provided that all services performed on any size vessel, whether less than ten tons or not, which are performed in connection with the catching or taking of salmon or halibut for com-mercial purposes do not come within the exemptions, such services being covered under the law. This, of course, will be of no effect in North Carolina since there is no salmon or halibut fishing carried on in our waters. The increase in the number of covered workers brought within the coverage of the Act as a result of including maritime workers thereunder will be very small, the amendment affecting mostly those indi-viduals engaged in the menhaden fishing industry in this State. AGRICULTURAL LABOR Agricultural labor is exempted from unemploy-ment payroll contributions under all state unemploy-ment compensation laws as well as under the Federal Unemployment Tax Act. This particular type of service was originally exempted from coverage under the various state laws and the Federal law because of the great administrative difficulties and the costs involved in applying the law to this particular type of service. The Unemployment Compensation Law of this state merely exempts "agricultural labor" and does not define the term. The duty of applying this ex-emption falls upon the Unemployment Compensation Commission, and at times presents a difficult prob-lem. In determining what constitutes "agricultural labor" the Commission considers the facts existing in each particular case, and has generally adopted what is known as the "farm concept theory" in reach-ing its decisions, its opinions centering around what constitutes a farm in the ordinarily accepted sense, and whether the services performed are incidental to ordinary farming operations. The Commission recognizes, however, that in present day business methods many activities formerly embraced in farm-ing operations or in intimate connection therewith have become specialized and removed from the farm, and when this is accomplished such work may properly be regarded as thereby becoming industrial in nature rather than agricultural in the common conception of that term. GREENHOUSE WORKERS EXEMPT Since an amendment to the Social Security Act in 1939, a number of the state laws, as well as the Federal law, have defined what constitutes "agricul-tural labor," and have included in such definitions all services performed on a farm in the employ of any person in connection with cultivating the soil, or in connection with raising or harvesting any agricul-tural or horticultural commodity. Such definitions usually provide that the term "farm" shall include nurseries and greenhouses. Although the Unem- ( Continued on Page 94) VETERANS REFUND ALLOWANCES IN CONCURRENT PAYMENTS Refunds of $12,298 by 227 World War II veterans had been made through October 9 in servicemen's readjustment allowances to the State Unemployment Compensation Commission, representing payments made for periods in which veterans were also draw-ing subsistence or remuneration while in school or on-the-job training under the G. I. Bill of Rights. Demand has been made for refunds of approxi-mately $54,520 from 976 veterans, $20,000 from 103 self-employed and $33,920 from 873 unemployed veterans, during recent weeks, as a result of which the 227 veterans refunded $12,298. Refunds are received daily by the UCC and demands for refunds go out to veterans daily. Only a few of these veteran claims for self-employ-ment and unemployment allowances were made with intent to defraud the U. S. Government, Chairman Henry E. Kendall points out. Occasionally veterans were filing claims for unemployment or self-employ-ment while their on-the-job or institutional training papers were in process. A few of these veterans entered on-the-job training or went to a school or college and their remuneration or subsistence was delayed for a few weeks, during which they con-tinued to file unemployment claims. In the routine process, schools and colleges, as well as firms conducting on-the-job training, submit re-ports on all veterans to the Veterans Administration Regional Office in Winston-Salem. Reports of this information are sent to the UCC. The UCC, in turn, must check all of the school or on-the-job training veterans reported against the records of all veterans drawing unemployment or self-employment allow-ances. It is in this checkup that those who draw con-current payments are discovered and demand for refund of the readjustment allowance payments is made. Some of the veterans upon whom demand is made for refund enter appeals from the demands, as is their privilege. Through October 9, appeals had been filed by 116 veterans. These cases are heard by UCC appeals deputies and decisions rendered in accordance with findings of fact. "It is well to remember," said Chairman Kendall, "that veterans who draw allowances to which they are not entitled are required to refund the amounts drawn, whether there is evidence of fraud or not. We believe that fraud can be established in only a few of these cases. Our records indicate that when a veteran in school or in-the-job training gets his subsistence or remuneration, he stops filing claims for unemployment or self-employment allowances. A very small percentage continue filing and making fraudulent statements. In these, of course, the record will be turned over to the Veterans Administration for prosecution or whatever action the U. S. At-torneys may take." PAGE 88 THE U. C. C. QUARTERLY FALL, 1946 Millions Involved In Veterans' Readjustment Allowances By M. R. Dunnagan, Informational Service Representative Administering the Servicemen's Readjustment Al-lowances program, as provided in the G. I. Bill of Rights, and delegated by the U. S. Veterans Admin-istration to the Unemployment Compensation Com-mission of North Carolina, really takes its place in classification as "big business". Operation of this program actually began in Sep-tember, 1944, at a time when the nations of the earth were still engaged in death grapple, and only a few veterans of that world conflict had been released from the service—usually those with physical or other dis-abilities. Since September 14, 1944, when unemployment al-lowances actually became available, and since Novem-ber, 1944, when self-employed allowances first became available (for self-employment during the preceding month of October) approximately 125,000 World War II veterans in both classifications had been paid through September, 1946. 35,887,738 by the State UCC, for which it received reimbursement daily from the Veterans Administration. UNEMPLOYMENT ALLOWANCES Servicemen's Readjustment Allowances for unem-ployment, starting low in the last four months of 1944 and remaining moderate during most of the year 1945, but increasing monthly, reached the highest peak during the week ended June 29, 1946, when 27,- 644 veterans drew $613,120 in unemployment allow-ances. However, the weekly average payments in June reached only 23,841 whereas the August average was 24,581 payments a week. During the entire month of August 105,697 payments were made, ag-gregating $2,277,303.00. During the entire period of unemployment allow-ances, from September 14, 1944, through September, 1946, slightly more than two years, readjustment allowance payments aggregated $19,293,130.00, in payment for 975,000 weeks of unemployment. During that period the average weekly payment was approx-imately $19.75, as compared with the maximum of $20 a week. This indicates that only a few of the veterans reported earnings for any week for which a claim was filed, and only small amounts of odd-job or part-time earnings were reported. Records show that slightly more than 94,000 new claims for unemployment had been filed in the two years, indicating that only 94,000 of the approx-imately 320,000 veterans who had been discharged in North Carolina were unemployed at some time since their discharge that is, only 28.1 percent of the dis-charged veterans have filed claims for unemployment, and probably slightly less than that percentage and number actually received unemployment benefits. New claims filed by unemployed veterans, those filing the first time, reached their peak in January, 1946, following the period in which the rate of dis-charge from the armed forces was greatest, when 12,- 461 new claims were filed in one month. The rate of new claims has continued to drop gradually, but definitely, until they had declined to 6,023 in August and 3,012 for September. This is less than one-fourth of the peak week in January. Continued claims, those filed after the first claim has been filed, representing weeks of unemployment and as a result of which the veteran may reasonably expect to receive allowance checks, reached their peak for a normal week during the week ended May 4, 1946, with 29,975 continued claims. Two other weeks had higher figures for continued claims, but in both cases the weeks preceding contained holidays and veterans due to file claims on those days were allowed to file them on the same week-day during the following week. In the week ended July 13, (July 4 holiday) 31,022 continued claims were filed, and for the week ended May 18, (May 10 holiday) 30,272 con-tinued claims were filed. From the normal week peak of 29,975 for the week ended May 4, the weekly claims load dropped to 12,160 for the week ended October 26. This reflects a decrease of 59.4 percent in con- This group is engaged in pro-cessing claims for veterans in the Central U. C. C. office in Raleigh. Bend-inf, at extreme, left, is John R. Branham* Jr., Administrative j Assistant. Along the right toall, left to right, are: W. Tom Arthur, seated in front of Ben E. Woodall and J. Wilbur Pea-cock, standing, supervising claims examin-ers' in the Vet-erans program. FALL, 1 946 THE U. C C QUARTERLY PAGE 89 Checks for vet-erans are be-ing prepared by this group of workers in , the Central U. C. C. building in Raleigh. Standing, left, is E. S. Pearce, assistant audi-tor, and, right, W. H. Pitman, chief auditor of the U. C. C. tinued claims from the peak, and a decline to the ap-proximate weekly average in January, 1946. Con-tinued claims have averaged approximately 9,200 a week for the 106 weeks of the program through Sep-tember, 1946. SELF-EMPLOYED ALLOWANCES October, 1944, was the first month for which self-employment allowances were payable, but, due to the beginning of this program, several veterans did not file claims for that month until November and December. The result of this and the fact that the first Readjustment Agent for North Carolina, Cale K. Burgess, Raleigh, did not begin his duties until Jan-uary 1, 1945, first checks in this program reached the self-employed veterans claimants in that month. Preparatory work in getting vouchers ready for the self-employed veterans was done in Mr. Burgess' office in the Caswell Building, the position having been taken over by Col. A. L. Fletcher, former chair-man of the UCC on May 1, 1946, and checks were actually written in Richmond, Va. and mailed to the claimants from the U. S. Treasury Disbursing Office in Richmond, Va. As of October 1, 1946, this work was taken over and performed by the State UCC and checks have since been prepared and mailed from this office directly to the self-employed veterans, as has been the case from the beginning with the unemploy-ment claims and checks. The self-employment program is different from the unemployment program in that the claimant is self-employed, conducting his own business or office. The veteran filing a claim for self-employment is not available for placement in another job. He has a job and claims only difference between what he earns or receives as profit in his business or profession and $100 a month The Veterans Administration supple-ments his income while he is attempting to establish himself in his business, industry or profession. This program lasts for only 10.2 months, not neces-sarily consecutive, however, for any self-employed veteran, since the rules require that when a self-em-ployed veteran files a claim and receives a monthly allotment, he is charged with five weeks of the 52- weeks period in which he may draw these allowances. Also, if the self-employed veteran earns something, but not the full $100, in any given month, his allow-ance is reduced, but he is also charged with five weeks of allowance even though he may have received only $25, or $40 or $50. While self-employed veterans in many classifica-tions, professional, business, industry, or other, are eligible to claim allowances under this program, it so happens that in North Carolina from 90 to 95 percent of the claimants have been farmers. Also, because they were receiving aid while producing their crops, the number has dropped considerably during the fall months, in which their crops were being marketed and they were receiving income from their earleir labors. ALLOWANCES TO SELF-EMPLOYED Since he self-employment program started about two years ago veterans have received $16,594,608, compensating them for 168,725 months of self-em-ployment, through September, 1946, or in about two years. Since the monthly allowance averaged $98.35, out of a possible $100, it is evident that very few self-employed veterans reported any income, and those who did report income reported very little. Slightly more than 31,000 veterans had filed self-employment claims in the two years of the program, through September, 1946. When it is recalled that about 320,000 North Carolina veterans have been dis-charged from the armed forces, it is apparent that just about 9.4 percent of those discharged have filed claims for self-employment allowances. Peak of the self-employment payments was reached in May, 1946, in which month $3,782,089 was dis-tributed as full or partial allotments for 38,340 months of self-employment. In June $2,460,635 was paid in allotments for 24,958 months, while in July another upward spurt was recorded, when $2,954,138 was paid for 30,039 months. The drop since has been extensive. In August $2,549,817 was paid for 25,962 months ; in September, $1,594,155 was paid for 16,341 months; and, in October a new low was recorded, $1,132,614 for 11,940 months. PAGE 90 THE U. C C. QUARTERLY FALL, 1946 INVESTIGATED AND DISALLOWED Not every veterans is allowed to collect on every claim he files In the slightly more than two years, through September, 1946, during which allowances were available, approximately 42,000 claims have been investigated by USS claims deputies. In case of the claims of unemployed veterans, claims deputies disallowed 23,199 weeks of allow-ances, and disallowed 3,094 self-employed claims when they were filed. They also disallowed an ad-ditional 3,054 months of continued claims for self-employment filed. In about two years 1,479 cases were appealed from the decisions of the claims deputies in cases of unem-ployed veterans and 849 cases were appealed in cases of self-employed veterans, making a toal of 2,122 cases that have gone up to appeals deputies for fur-ther investigation and determination. STEPS OF VETERAN CLAIMANTS The first step taken by the veteran seeking unem-ployment allowances is to report to his nearest Em-ployment Service office, where he registers for work. He must continue to report to this office each week for any available work If no work is available im-mediately he is referred to the UCC claims taker, who interviews him and makes out his claim for an allowance. If the claims taker has any question as to the validity of the claim, he refers it to the UCC claims deputy for an investigation. If the claims deputy approves the claim, or if the claims taker is satisfied in the first place of its validity, the claim is forwarded to the State UCC office where it is pro-cessed and a check is issued to the unemployed veteran. Claims received in the State UCC offices are broken down into small batches and assigned to individual claims examiners. If the examiner finds that the claimant is qualified and his claim is in order, he approves the claim and routes it to the accounting department, where an addressograph plate is made, bearing the name, address and serial number of the veteran. A separate ledger account is set up for each claim-ant and the weeks of entitlement are computed, rang-ing from four weeks, for some disabled veterans, with less than three months service, to 52 weeks. The in-formation is sent to the check-writing division, where the check is made out by a semi-automatic process. All checks thus processed go by messenger to the State Auditor's office where the amount is imprinted on the check and the signature of the State Auditor added to that of Chairman Henry E. Kendall. Checks are returned to the UCC office and mailed to the veterans daily. The UCC is serious in its desire to pay Service-men's Readjustment Allowances to all veterans to whom such payments are due, in furthering the policy and plan for which the program was intended—as an aid in bringing about the readjustment of the vet-erans in the communities in which they decide to live and enabling them to take their places in the economic and business life of our people. On the other hand, the UCC is just as intent upon paying allowances only to those who have qualified for them and continue to meet the conditions pre-scribed by law. That is why an effort is made, every time a veteran files a claim for allowances, to find a job for him, or to help him find suitable work. If a veteran has been filing claims for several weeks, claims takers begin to question him as to what efforts, if any, he has made toward finding a job for himself. FIND A FEW FRAUD CASES In order to qualify for allotments a veteran must have been discharged under conditions other than dishonorable. He must be able to work, available for work and willing to take a suitable job. In fact, he must show every time he files a claim, by signing a statement to that effect, that he wants a job and can and will take a suitable one. Also, he is required to report any earnings from odd jobs or part-time employment in the weeks for which he applies for allowances, in cases of unemployed veterans, or in the months for which he seeks allowances, if he is a self-employed veteran. If a claims taker has reason to believe that a vet-eran seeking allowances is not available for work or is not willing to take a job which is considered suit-able for him, then payments are halted until the claims deputy makes a check and determines his rights. The same conditions apply to veterans who are believed to be employed part-time or at odd jobs and fail to report any earnings to the claims taker when he files his claim In some cases a veteran will file a claim and report no earnings when he has actually been at work, full or part-time, and should have reported earnings. In such cases payments are stopped and a hearing held. If the claims deputy, or later the appeals deputy, finds that the veteran has actually practiced fraud in making his claim, the record in the case is turned over to Col. A. L. Fletcher, State Veterans Readjust-ment Allowance Agent. If Colonel Fletcher approves the findings of the UCC appeals deputy, he submits the record to the regional attorney for the Veterans Administration. At this writing, J. Howard Killian, of Charlotte, is acting regional attorney for the North Carolina region. The regional attorney turns the case over to the U. S. District Attorney in the ap-propriate district of the three districts in North Caro-lina for prosecution in the Federal Court. Only a few such cases have actually reached the trial stage, out of 35 to 40 fraud cases that have been turned over to the Readjustment Allowance Agent by the UCC deputies. The UCC deputies have authority to stop payments and turn the the records over to the Readjustment Allowance Agent, in cases of fraud. That is as far as the UCC can go. It is then up to the Veterans Ad-ministration and the Federal Court officials. Penal-ties, in cases of fraud, include depriving the veteran of any further benefits under the G. I. Bill of Rights, the requirement that he refund any money obtained through fraud, and a fine of not more than $1000, or imprisonment for not more than one year, or both. The UCC receives and processes claims of veterans, (Continued on Page 99) FALL, 1946 THE U. C. C. QUARTERLY PAGE 91 New Industries 181, Expansions 100, In Six Months By Bill Sharpe, Director, State News Bureau North Carolina industry experienced what is be-lieved to be a record breaking growth in the first six months of 1946, according to the report of Paul Kelly, Assistant Director, and head of the Division of Commerce and Industry, N. C. Department of Conservation and Development. One hundred eighty-one new industries and an even 100 expansions within existing industries, pro-viding jobs for an estimated 28,638 new workers, requiring an approximate $62,491,500 in new capital investment, to provide an estimated $47,939,000 in new annual payrolls are listed in the summary pre-pared by Philip Schwartz, Industrial Analyst. As compared to the over-all 1945 figures, which INCREASE IN SMALL FIRMS IN NORTH CAROLINA North Carolina had a net gain of 1,460 industrial and commercial firms and 14,746 workers during the fiscal year ended June 30, 1946, roughly, the first reconversion year, as measured by the net increase of firms covered by the Unemployment Compensation Law. During that year 1,216 firms with 53,090 covered workers retired from UC law coverage, while 2,676 new firms with 67,836 covered workers were brought under coverage. S. F. Campbell, director of Re-search and Statistics, reminds that retirement may mean that firms consolidated, and that new coverage may be old or consolidated firms, or firms with fewer than eight workers which may have come under coverage, voluntarily or involuntarily, due to rela-tionship with other firms. These figures, however, bear out the known con-dition that many small firms have started business or industry in the State since the war ended and those covered by the UC law as a rule have eight or more workers. The one-year development is in contrast to activi-ties in the three principal war years, fiscal 1942-45. During those years the State had a net loss of 114 covered firms, but a net gain of 18,811 protected workers. The record shows that 2,989 firms with 101,566 workers retired from coverage and that 2,875 firms with 120,377 workers were brought under UC law coverage. By combining the figures for the four fiscal years ended June 30, last, it is found that 4,205 firms with 164,719 workers retired from coverage, while 5,551 firms with 188,213 workers were brought under coverage. This is a net gain in the four-year period of 1,346 covered firms and 23,494 workers. It seems safe to assume that the present fiscal year will show an even greater increase than the past year in the numbers of firms coming under the UC law, particularly small firms with 8 to 50 or more workers, as well as numerous firms with fewer than eight workers, which generally do not come under the UC law. were thought at the time of their release last Spring to constitute the most rapid industrial growth in any similar period in the State, the first six months of this year showed 181 new plants (in operation or in such projection as to be definitely reportable) to 225 for all of last year; $29,000,000 to $47,000,000 in approximate investment; 17,000 to 16,000 new workers; and $29,000,000 to $21,000,000 in approxi-mate new annual payrolls. In 1945, new textile industries (all types) were predominant with a total of 78 out of 225, or approxi-mately 34 per cent. This trend has continued steady and even stronger in the first six months of 1946, with a total of 96 out of 181, or approximately 53 per cent. Textile mill products, with an approximate 39 per cent, and apparel and other finished products, with an approximate 16 per cent, second and fourth respectively in the new comparison scale, seemed certain to establish, with the new textile industries figures, even more firmly by year's end North Caro-lina's position as the leading textile manufacturing state of the nation. Continuing, too, the state's record as the leader in furniture and finished lumber products, new indus-tries in those categories were 16 per cent of the total. Surprising, and heartening to state leaders, was the 8 per cent shown in food and kindred products in a state which raises much but has processed little food commodities. And the 6 per cent attributed to mis-cellaneous indicates that the recent efforts of the State Planning Board and other agencies toward the development of original new industries using North Carolina commodities is taking effect. This latter trend is shown even more clearly in the approximate investment figures which show, for miscellaneous in new and expanded industries over $14,000,000, second only to textile mill products with $39,000,000. Food and kindred products was third with $3,250,000, with other classified divisions fol-lowing in order : apparel and other finished products $940,000; chemicals and allied products $840,000; furniture and finished lumber products approxi-mately $800,000 ; electrical $750,000 ; stone, clay and glass products $400,000; lumber and timber basic products $265,000; machinery $30,000. Expansion in tobacco plants, with no new industries reported, amounted to $2,000,000. "Relief and Social Security" by Lewis Meriam was recently published by The Brookings Institution. The first half of this 900 page book gives a description of American relief and social security problems. The British and New Zealand programs are then de-scribed, and the last third of the book discusses the major issues of today's social security and relief pro-grams The study concludes that benefits should be offered to all who need them, and points out that the present program does not cover large groups whose members contribute to its support. PAGE 92 THE U. C. C. QUARTERLY FALL, 1946 Armed Services Amendment To Social Security Act From The National Legionnaire, October 1, 1946 The Armed Services Amendment to the Social Security Act, passed by the 79th Congress just prior to its recent adjournment, provides survivors' bene-fits for dependents of certain World War II veterans who have died or who will die within a limited period of time after discharge. This amendment was a partial victory for The American Legion but did not achieve all that had been sought in a Legion-sponsored bill (S-2204) which became hopelessly entangled in Congressional red tape in the 11th hour of the session. Because of the situation, it became necessary to employ parlia-mentary strategy to assure passage of "some" law granting benefits to veterans' dependents. "When it became evident our bill was stymied," stated Legislative Director John Thomas Taylor, "we immediately sponsored beneficial clauses in a comprehensive social security bill, H R 7037, which had progressed further along the Congressional route. This measure became Public Law No. 719." WHO ARE ELIGIBLE To qualify for benefits under the new law, the survivors of a deceased veteran must show that the veteran was in active military or naval service on or after September 16, 1940, and before the official end of the war. The veteran must have had at least 90 days of service, or, if his service was less than 90 days, it must have been terminated by reason of a service-connected or service-aggravated disability or injury. The law applies to veterans who die or have died within three years after discharge and who were discharged within four years and one day after the termination of the war as determined by Presidential proclamation or declaration of Congress. The veteran must have been discharged under conditions other than dishonorable. The law does NOT apply to veterans who died while in service. It does NOT apply to veterans who were dishonorably discharged. It does NOT apply to those who die more than three years after dis-charge. If survivors are receiving compensation or pen-sion—( this does not mean Government life insur-ance)— from the Veterans Administration, they are NOT eligible under the amendment. The law confers on the eligible veteran a fully insured status and guarantees his credit of a mini-mum average monthly wage of $160. An increment year is also provided for each year of 30 days or more of service. The benefits are computed from the average monthly wage, and each increment year increases the basic benefit by one per cent. If the qualified veteran leaves a widow with young children in her care, she will be eligible to receive a monthly benefit. Each child under 16 will be eligible to receive a monthly benefit two-thirds the amount of the widow's benefit. As each child reaches the age of 18, its benefit will terminate. When all chil-dren have reached the age of 18, the widow's benefit will be suspended if she is under 65 years of age. When the widow reaches 65, however, she will be eligible to file again for benefits, which will continue for the rest of her life. The widow, however, will lose all rights to benefits at any time if she re-marries. If the veteran leaves neither widow nor children under 18, his parents may be eligible for benefits if they are 65 years old or more, and were dependent upon him for support at the time of his death. After January 1, 1947, such parents may receive benefits even though the veteran is survived by a widow, or child under 18, if the widow or child can never become eligible for benefits. MUST FILE CLAIM If the veteran leaves no survivors immediately eligible for monthly benefits a lump sum may be payable to a certain specified relative or any other relative or person who paid funeral expenses. In case of veterans who died before enactment of the legislation, monthly benefits may be payable from the date of the veteran's death. Claims for such benefits must be filed at the nearest Social Security field office within six months after August 10, 1946, the date the law was enacted. Payment of benefits is not automatic. Claims must be filed for all bene-fits. Lump sum death claims must be filed within two years of death, or if the veteran died before enactment of the law, within six months of, August 10, 1946, or two years after death, whichever is later. PURPOSE OF LAW If a person dies in service, compensation is gener-ally payable to his survivors under Veterans Ad-ministration laws. But if after discharge he should have died without having a compensable service-connected disability, his survivors might have been without protection before the passage of the amend-ment. Many servicemen lost old-age and survivors' insurance status, or their potential benefits were reduced, because military service was not considered covered under the Social Security Act. The purpose of the amendment was to close this breach in sur-vivors' protection, until such time as the veteran might be expected to have been able to acquire or re-establish protection under the old age and sur-vivors' insurance program. If benefits under the old age and survivors' in-surance program already were payable and compu-tation under the veterans' amendment would increase the amount, the additional amount will be payable to survivors who filed claims within six months after August 10, 1946. Claims for increases in lump sum payments already may be filed within six months of (Continued on Page 99) FALL, 1 946 THE U. C. C. QUARTERLY PAGE 93 LESS THAN TWO PERCENT OF VETERANS EXHAUSTED ALLOWANCES Only 1.51 percent of the approximately 321,000 North Carolina veterans of World War II who had been discharged by September 1 had exhausted their Servicemen's readjustment allowances by that date, whether they were eligible for only eight weeks or the fu
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Title | U.C.C. quarterly |
Date | 1946 |
Publisher | Raleigh, N.C.: North Carolina Unemployment Compensation Commission,1942-1946. |
Rights | State Document see http://digital.ncdcr.gov/u?/p249901coll22,63754 |
Language | English |
Digital Characteristics-A | 30 p.; 4.16 MB |
Digital Collection | North Carolina Digital State Documents Collection |
Digital Format | application/pdf |
Title Replaced By | E.S.C. quarterly** |
Audience | All |
Pres File Name-M | pubs_serial_uccquarterly19421946.pdf |
Pres Local File Path-M | Preservation_content\StatePubs\pubs_serial_escquarterly |
Full Text | THE U.C.C.QUARTERLY VOLUME 4, NO. 4 FALL 1946 State College—Valuable Asset to North Carolina Industry AIR VIEW OF NORTH CAROLINA STATE COLLEGE, RALEIGH, N. C. wn»n*jnffff FROM PUBLISHED BY UNEMPLOYMENT COMPENSATION COMMISSION OF NORTH CAROLINA V\; APR 1 1947 Qfttev .-„„.-rV ^ PAGE 70 THE U. C. C QUARTERLY FALL, 1946 The U. C. C. Quarterly Volume 4 ; Number 4 Fall, 1946 Issued four times a year at Raleigh, N. C, by the UNEMPLOYMENT COMPENSATION COMM8SSSON OF NORTH CAROLINA Commissioners: Mrs. W. T. Bost, Raleigh; Judge C. E. Cowan, Morganton; C. A. Fink, Spencer; R. Dave Hall, Belmont; Marion W. Heiss, Greensboro; Dr. Harry D. Wolf, Chapel Hill. State Advisory Council: Capus M. Waynick, Raleigh, Chair-man; Willard Dowell, Raleigh; H. L. Kiser, Charlotte; Dr. Thurman D. Kitchin, Wake Forest; Robert F. Phillips, Ashe-ville; Mrs. Dillard Reynolds, Winston-Salem; Mrs. Emil Rosenthal, Goldsboro; W. Cedric Stallings, Charlotte. HENRY E. KENDALL Chairman R. FULLER MARTIN, Director Unemploym't Compensat'n Div. ERNEST C. McCRACKEN, Director Employment Service Div. M. R. DUNNAGAN Editor Informational Service Representative Cover illustrations represent typical North Carolina industries under the unemployment compensation program or related activities. Cover for Fall, lQlfi—Aerial view of North Carolina State Col-lege of Agriculture and Engineering of the Greater University of North Carolina, in West Raleigh, showing a large part of the main college buildings and campus Seaboard and South-ern railway tracks are seen at the right. College property holdings total 2,617 acres, including dairy and livestock farms. A projected expansion program would double the present school facilities for the 4,500 students now enrolled. An article in this issue by Charles W. Daniel, former editor, N. C. State College News Service, explains the ways in which the college contributes to industry in North Carolina. Sent free upon request to responsible individuals, agencies, organizations and libraries. Address: U. C. C. Informational Service, Raleigh, N. C. CONTENTS Page Ernest C. McCracken, Director Employment Service Division 70 College Research Aids States Expanding Industries, by Charles W. Daniel 71 Employment Service Returned to State UCC November 16, by M. R. Dunnagan 73 State Planning to Develop and Expand Industries, by Felix A. Grisette 74 Big Increase in Small Industries in North Carolina, by Silas F. Campbell 76 Identifying and Locating Unemployed in North Carolina, by Hugh M. Raper 78 Unemployed must Seek Jobs to Qualify for Benefits 79 Decided Decrease in Benefit Payments in Fall Months 79 Trends in Covered Employment, Weekly Wages, 1942-1945, by Silas F. Campbell 80 Apprentice Training Being Revived in N. C. Industries, by M. R. Dunnagan 82 Where are the Workers for North Carolina Industries? by Benton Bray 84 Coal Mine in North Carolina Expected to Produce Soon, by Bill Sharpe .. 85 Maritime Workers Covered; Greenhouse Exempt, by R. B. Billings 86 Veterans Refund Allowances in Concurrent Payments 87 Millions Involved in Veteran Readjustment Allowances, by M. R. Dunnagan 88 Unemployment Decreases; Average Weekly Wages Show Increase 90 New Industries 181, Expansions 100, in Six Months, by Bill Sharpe 91 Increase in Small Firms in North Carolina 91 Armed Services Amendment to Social Security Act.... 92 Less Than Two Percent of Veterans Exhausted Allowances . 93 North Carolina in Region IV Has Less Unemployment 95 Federal Agencies Reorganized by Executive Order, Plan 2.... 96 National City Bank Cites Unemployment Problems 98 Marion W. Heiss is New Employer-Member of UCC 99 ERNEST C. M'CRACKEN, DIRECTOR EMPLOYMENT SERVICE DIVISION Ernest C. McCracken, former assistant State di-rector of the U. S. Employment Service for North Carolina, now the North Carolina State Employment Service Division of U.C.C., was appointed State Di-rector to succeed R. Mayne Albright, resigned, and Robert M. du Bruyne, chief of Programs and Methods, succeeded McCracken as assistant State director, both effec-tive October 1, 1946. John Francis Foy, regional director, USES, Washington, announced the ap-pointments. The appointments were made in Wash-ington, but after as-surance that they were acceptable to Henry E. Kendall, chairman of the Un-employment Com-pensation Commis-sion of North Caro-lina, and other State officials, since the USES, under con-gressional direction, was to be (and was) returned to the State UCC on November 16. Mr. McCracken has a splendid background for his new duties. He joined the Employment Service in 1937 as interviewer in the Waynesville office, later was interviewer at Marion, assistant Manager at Asheville and manager at Lenoir. Late in 1940 he was transferred to Raleigh and served for periods as training supervisor, field supervisor and as chief of the Planning Section. Mr. McCracken was called to Washington in 1942 as assistant regional represen-tative of Region IV, during which year he served for a few months as acting State director for the USES in West Virginia. Upon return he served for about a year as assist-ant State director, was commissioned as an Ensign in the U. S. Naval Reserve in August 1943, and was promoted to Lieutenant (jg) during his service of two and one-half years. He was assigned to the Fourth Naval District, comprising Pennsylvania, Delaware and southern New Jersey as assistant to the district civilian personnel director and was sta-tioned at Bethlehem, Penna., most of the time. He resumed his post as assistant State director in Feb-ruary after release from the Navy. Mr. McCracken is a native of Haywood County, a graduate of Western Carolina Teachers College at Cullowhee and spent four years as teacher and prin-cipal in the Waynesville Schools before joining the Employment Service. (Continued on next Page) Ernest C. McCracken FALL, 1946 THE U. C. C. QUARTERLY PAGE 71 College Research Aids State's Expanding Industries By Charles W. Daniel, Former Editor, N. C. State College News Service North Carolina is the richest "deficit" State in the Union. Tobacco taxes alone set the State very close to the top in payment of revenue to the federal gov-ernment. The objective query of an outsider might well be why should this State, with fine mountains and sea-coast, abundant waterways, fine soils and minerals of virtually every type usable, 48,000 miles of good roads and every natural resource to make it self-sufficient, import such high percentages of meat, milk, shirts, engines and a host of other essentials? North Carolina grew up naturally from the time of Virginia Dare's disappearance into a State of pre-dominantly agricultural interests, small towns and small industries. Aside from the tobacco folks, no-body did anything on a scale sufficient to accommo-date consumer demand. Like the streets of Durham, one of the State's larger cities, industries in North Carolina "just happened," most of them without benefit of basic research. Research developed the atomic bomb, the girdle with the two-way stretch, the electric light and just about everything else useful today. It can develop North Carolina resources sufficiently to make the State essentially independent of imports from other States. North Carolina and the South today are "deficit" States and behind the times in industrial develop-ment primarily because of the absence of research and trained research personnel. ERNEST C. MXRACKEN, DIRECTOR EMPLOYMENT SERVICE DIVISION (Continued from Page 70) Mr. du Bruyne, new assistant State director, also came up through the ranks of the Employment Ser-vice. He joined the UCC late in 1937 as a claims interviewer at Rockingham and served later as field investigator in Asheville. After transfer to the Em-ployment Service, he served as manager of the Le-noir, Fayetteville and High Point local offices, and was promoted to field supervisor and area director for the War Manpower Commission. Mr. du Bruyne was transferred to the State office in August, 1943, as chief of placement and has served as assistant State Director, and Acting State Director, following Dr. J. S. Dorton's resignation as WMC State director and pending Mr. Albright's return from military leave. UCC Chairman Kendall expressed entire satisfac-tion over appointments of Mr. McCracken and Mr. du Bruyne to key positions in the Employment Ser-vice and the assurance of continued close cooperation after the USES returned to State control on Novem-ber 16. State College is one of the few seats of industrial and business experimentation in the State. Projects are now being conducted by the research arms of the Engineering and Textile schools of the college which give promise of opening new avenues to small Tar Heel industry and of creating the attraction which could draw new manufacturing concerns to North Carolina. The efforts of the college to promote North State industry are not confined to research. Recently a high-paid official of Westinghouse Electric, impress-ed by the performance of five young employes who had just graduated from State College with engineer-ing degrees ,determined to send his son to the West Raleigh institution. The efforts of Engineering Dean John H. Lampe, and Textile Dean Malcolm E. Campbell are bent to turn out such well-trained graduates as to awaken manufacturers in other states to the fact that North Carolina is the state with both the facilities for training highly skilled workers and the facilities for the production of finished goods. The engineering school attracted 2,000 students in September. The textile school, already by far the largest in the world, attracted 500. Foremost among research projects at the college in engineering, textiles and agriculture are those aimed to benefit small industries already struggling for a foothold at home. The relatively small staff of research workers must first establish continuous re-lationships with the operators of small industry. They must discover the production problems of the small operator and then proceed to help him with his problems. (Continued on next Page) „w* \, 4 Diesel Engineering Building. State College PAGE 71 THE U. C. C. QUARTERLY FALL, 1946 Among college projects in this category are lab-oratory efforts to improve textile machine design; to develop improved methods of drying brick ; to de-termine the ignition point and burning rate of plas-tics ; to test the burning characteristics of domestic fuel oils; to discover a more sanitary means of dis-posing of both municipal and industrial wastes in the State's streams ; and, to use the institution's more than $3,000,000 worth of diesel machines and equip-ment to plug the State at the most likely spot on the Eastern Seaboard for the manufacture of diesel engines. Heading the laboratory efforts in textile machine design is Dr. Clarence M. Asbill, Jr., creator of num-erous cotton processing machines and the holder of many patents. The college's modernistic laboratory has recently been enhanced with surplus army equip-ment bought at Seymour Johnson Field near Golds-boro. Dr. Asbill is confident that new and far-reach-ing developments in textile machinery are not far away. Dr. W. W. Kreigel and Martin Parcel are working on a project designed to speed up the drying process for structural clay products. Brick production is a fast-growing enterprise in the State. Many opera-tors now have machines capable of cutting and dress-ing 300,000 brick daily. However, the average kiln is capable of drying only 70,000 brick daily. The work, intended to bring the drying capacity up to the cutting peak, is being conducted with infra-red rad-iation. The scientists admit that this is a tough one. In chemical engineering, D. S. Weaver, Jr., is searching for a simple, rapid and accurate method of determining the ignition point and the burning rate of various plastic materials. The world use of plastics has become so extensive as to lend great significance to this job. Among the more common commodities to be affected by any findings are movie film and table tops. The Navy has conducted incon-clusive research on this problem. The American Society for Testing Materials is providing financial backing for the tests. The only piece of industrial research financed by a private business at State College is being pursued by W. F. Morris, Jr., for the Texas Company. It is to test the burning characteristics of different types of domestic fuel oils. Morris' investigation has never been attempted before although similar research has been made by other oil companies. Oil company forecasters say that within a short period, the de-mand for fuel oil will double that for gasoline. One big and obvious reason for this conclusion is the rapid turn by virtually all trunk rail companies to the use of diesel engines as opposed to the old coal-burners. First in this connection is the Seaboard which already has 32 passenger diesel units, 44 EMC (twin-engine) freight units and one large Baldwin engine, which is heavier than both sections of an EMC-powered unit. Officials of the railroad said that the company intends to become entirely diesel-ized as fast as tracks can be conditioned to accommodate the weight. Here, according to Professor R.B.Rice, head of the Diesel Engineering School at State college, is where the school, with its more than $3,000,000 in diesel equipment comes in. There is not a single diesel manufactur-ing plant on the Eastern Seaboard (aside from the Sun Shipbuilding Com-pany at Chester, Pa., which builds only custom engines for the Sun ships). The State has the sea coast, the facilities, Memorial Tower, State College the manpower, and now, the means of training neces-sary personnel to build these oil-burning engines which are coming into greater use everywhere. Raleigh is a middle point on the north-south rail run from New York to southern terminals. It could logically become a diesel maintenance center for all the big railroads which run through the city: Sea-board, Atlantic Coast Line and Southern. When the railroads first began using diesel power, special maintenance men and mechanics were hired to ride the trains. That maintenance system still stands. The American Society of Refrigerating Engineers has called upon Dr. E. M. Schoenborn, head of the Department of Chemical Engineering, to investigate "heat transfer as affected by frost and ice" in an attempt to develop more efficient refrigerating ma-chines. Ice and frost formations in refrigerators reduces efficiency. Work on the job will begin this fall. J. A. Rolston, in metalurgical engineering, is con-ducting research into the relative merits of metal surfaces in soldering to make joints. He will at-tempt to discover what surfaces take solder best and make better joints. Little if any work of a purely scientific nature has been completed in this country on soldering, a vital consideration in construction and repair with metals. Local and branch office personnel of the North Carolina State Employment Service Division of UCC made 153,453 reception contacts with the public dur-ing December, 1946, which included three holidays, at the 78 offices and about 80 itinerant points. This was an increase of 31 percent over December, 1945. The personnel made 13,584 referrals of job seekers to jobs and verified 7,202 placements on jobs, an in-crease of 16 percent over December, 1945. Of total placements, 2,854 were of veterans and 303 were of disabled veterans. FALL, 1 946 THE U. C C. QUARTERLY PAGE 73 Employment Service Returned to State UCC November 16 By M. R. Dunnagan, Informational Service Representative ployment Service remain under Federal control until June 30 1947, at least, to take care of the readjust-ment, placement of returning veterans, and proper balancing on a national basis of the labor force. Con-gress was insisting on the return of the Employment Service to the several states. One amendment, a rider on another measure, was enacted by Congress, providing for the return earlier in 1946. President Truman vetoed the bill. Later Congress provided for the return of the Employment Service on Novem-ber 16, a compromise date, and President Truman signed this measure. Soon after its nationalization the U. S. Employ-ment Service geared itself for the task of finding and supplying workers for the numerous war plants that sprang into existence almost overnight. Among its earlier tasks, some in advance of its nationalization, was providing labor for the many war forts, camps and bases constructed in North Carolina, including Fort Bragg's enlargement, Camp Davis, Camp But-ner, marine bases at Camp Lejeune and Cherry Point, and numerous other smaller projects. Shipyards, airplane plants, precision machine shops, rubber plants and others in this State, as well as similar and other strategic types of operations in other states, called upon the U. S. Employment Ser-vice for workers. Many thousands were recruited and transported to war jobs within and outside North Carolina, which was looked upon as a labor supply state—with a surplus of labor to be channelled into urgent projects. Soon after the Employment Service was national-ized the War Manpower Commission was set up and this Commission soon took over the USES as its main operating agency. The WMC set up controls which took labor from less essential and placed it in more essential operations, set ceilings on the numbers of workers in all industrial plants and channelled work-ers into war activities where they could do the most good in support of the war effort. Through all of this the USES was the strong right arm of the WMC. Its tasks were to implement and seek to enforce the war-time regulations of the WMC, collect data, on the basis of which labor marked areas were set up showing shortages or surpluses of labor, contracts were awarded or withheld and renewed or terminated. These studies involved determinations as to amounts and types of labor available, housing, transportation, food supplies, sanitary conditions, and many other factors in every community in the State. The USES in North Carolina did a magnificent war job and modestly accepted the praise and plaud-its of regional and national officials, industrial lead-ers within and outside the State, labor organizations and that large segment of the public generally which had occasion to know of its activities. Piloting the USES in its early days of war acitvity was R. Mayne Albright, who had been appointed to (Continued on Page 95) The Employment Service is back with the State UCC as a coordinate division, along with the Unem-ployment Compensation Division, after almost five years as a Federal agency, the United States Employ-ment Service. The return of this division to the State agency became effective as of November 16, as the result of congressional action last summer. Historically, the Employment Service is older than the UCC. The Wagner-Peyser bill was enacted by Congress in 1933, setting up a public employment service on a nation-wide scope but with State par-ticipation. This Employment Service superceded the National Reemployment Service, which had been set up primarily as an agency to place unemployed and needy workers on public works projects during the depression years following the 1928 debacle. Capus M. Waynick, formerly of High Point, now of Raleigh, was State director of the National Reemployment Service in North Carolina. The General Assembly of North Carolina, in 1935, appropriated $75,000 a year to match Federal funds provided in the Wagner-Peyser Act for establishing a State-wide public employment service system through local employment offices at key points throughout the State. Mrs. May Thompson Evans, now an assistant in the Headquarters office of the USES, as assistant director of the National Reem-ployment Service, was instrumental in securing the passage of the bill providing for State participation under the Wagner-Peyser Act and became the first State director of the agency, then known as the North Carolina State Employment Service. In December, 1936, the North Carolina General Assembly, in special session, enacted the State Un-employment Compensation Law, which set up the Unemployment Compensation Commission of North Carolina and incorporated the North Carolina State Employment Service in the agency as the Employ-ment Service Division, coordinate with the Unem-ployment Compensation Division. When the Em-ployment Service was first established, it was under the direction of the U. S. Department of Labor and so continued until 1939, when it was placed under the Social Security Board. Soon after Pearl Harbor, President Franklin D. Roosevelt issued an executive order, effective Jan-uary 1, 1942, combining the Employment Service agencies in the 48 states and three Federal units into a national agency, the U. S. Employment Service, on the ground that this service could function more efficiently as a national unit than it could as 51 sep-arate units. In messages to the 48 State Governors, President Roosevelt asked that the 48 State Employ-ment Service units be turned over to the Federal Government for the duration of the war. The Gov-ernors agreed, placing the transfer on a loan basis, the Employment Service units to be returned to the States after the war was over. President Harry S. Truman asked that the Em- PAGE 74 THE U. C. C. QUARTERLY FALL, 1946 State Planning to Develop and Expand Industries By Felix A. Grissette, Managing Director North Carolina State Planning Board The statute creating the North Carolina State Planning Board defines its functions as follows: "That it. shall be the function and duty of the State Plan-ning Board to make studies of any matters relating to the general development of State or regions within the State or areas of which the State is a part, with the general pur-pose of guiding and accomplishing a co-ordinated, adjusted, and efficient development of the State. Upon the basis of such studies, and in accordance with the present and fu-ture needs and resources the board shall present, from time to time, reports, plans, maps, charts, descriptive mat-ter and recommendation relating to such conservation, wise use and planned development of the material and human resources of North Carolina as will best promote the health, safety, morals, order, convenience, prosperity and welfare of the people of the State." The act further specifies that the Board shall con-sist of nine members, appointed by the Governor, as follows : Five members to be chosen from State officers or heads of departments or boards, one of whom shall be the Director of the Department of Conservation and Development; at least one repre-sentative from the University of North Carolina, and the remaining members to be chosen from among the other citizens of the State. The members of the Board shall hold office during the pleasure of the Governor, and all vacancies shall be filled by the Governor, when and as they may occur. The Gov-ernor designates one member to serve as chairman and the Board elects one of its members to serve as secretary. Employees of the Board are appointed by it and responsible to it. D. Hiden Ramsey of Asheville is Board chairman and R. Bruce Etheridge is secretary. Felix A. Gri-sette has served as managing director since the Board began its full-time activities early in 1944. Other members are : W. F. Carr, Durham ; Harry B. Cald-well, Greensboro ; Irving F. Hall, Raleigh ; Robert M. Hanes, Winston-Salem; George W. Kane, Rox-boro ; Dr. Howard W. Odum, Chapel Hill ; Capus M. Waynick, Raleigh. A careful study of the functions of the Board, as defined in the above quotation from the statute creat-ing it, indicates that it has almost unlimited author-ity in matters relating to the general development of the State. The present Board has felt from the out-set that this authority implied a great responsibility. In attempting to fulfill this responsibility, the Board formulated an eight-point program of policies which should guide its activities, as follows : 1. In all matters of policy, it must be borne in mind that the legislative act which created the Planning Board specified that it would be "an advisory agency of the State." 2. In so far as possible, the planning projects which the Planning Board may advocate should be executed by the departments, divisions, agencies, and institutions most directly concerned. The extent to which the Planning Board can stimulate and encourage and facilitate this planning within other agencies rather than to attempt them itself should constitute the final measure of its value to the State. 3. A logical complement of this policy of encouraging planning within existing agencies would be that the Planning Board serves as the coordinator in those pro-jects which cut across departmental lines. If a pro-ject involves two or more State agencies, as it fre-quently will, the Planning Board should serve as the liaison between the public and the agencies involved. 4. The policy of stimulating other agencies to execute planned projects should presuppose a willingness and ability on the part of the Planning Board to render every possible assistance. Research information not now available, for instance, would be a service for which the Planning Board should assume responsibility. 5. The policy of stimulating other agencies to do the actual planning does not remove entirely the possibility that the Planning Board should undertake projects in its own right. The responsibility implicit in its all-inclusive objectives demands that it undertake such needed projects as cannot be executed in some exist-ing agency. 6. In keeping with this policy of collaboration, the activities incident to the establishment and operation of local planning boards should be undertaken in co-operation with local officials and all interested local lay groups. 7. Because of staff and budgetary limitations, the Planning Board should limit its activities to a comparatively few projects. Concentrated effort in a few fields would seem preferable to scattered attempts in many direc-tions. 8. Subject to the limitations of its main objectives, the Planning Board should concentrate on these projects designed to meet the problems that will likely confront the State in the immediate postwar period. In attempting to perform the functions for which it was created, consistent with the above statement of policies, the work of the Board, since it was set up on a full-time basis early in 1944, can be divided roughly into four general classifications : I. To serve as a coordinating agency. II. To aid and encourage organized planning at the community level. III. To serve as a research, fact-finding, information agency in all matters relating to North Carolina. IV. To make recommendations in behalf of a greater North Carolina, based on the needs of the people of the State. A brief review of the high spots in these four fields of activity will serve to make clear what the Board is attempting to do. I. A COORDINATING AGENCY Many segments of State life cut across depart-mental lines. Many important fields of endeavor are partially the concern of several departments or in-stitutions without being the exclusive responsibility of any one such agency. This situation creates a demand for one detached objective agency to serve FALL, 1946 THE U. C. C. QUARTERLY PAGE 75 as a coordinator in order that duplication of effort may be avoided and in order that no important ac-tivity shall be overlooked. The Board conceives its responsibility to include this function and it has proceeded accordingly. Much of this coordinating function is effectuated by the use of committees rep-resenting all interests involved. Examples of such coordinating committees, all of which are actively at work in their respective fields, are: The Committee on Resource-Use Education, which Gov-ernor Cherry has pronounced as possibly the most im-portant ever appointed in the history of the state. The Committee on Services for Children and Youth The Committee to Promote Rural Industries The Committee on Agriculture The Committee on Public Works The Committee on Tourists and Travel The Committee on Education The Committee on Health The Committee on Public Welfare The Committee on Recreation The Industry Advisory Committee The Committee on Taxation The Committee on Art, Literature and Music The Committee on Community Planning Committees on transportation and housing will probably be appointed in the near future. Approx-imately 300 state officials and other prominent cit-izens serve on these committees. //. LOCAL PLANNING North Carolina communities are urged to create local planning agencies to perform the same func-tions at the community level which the State Board attempts to perform at the State level. Emphasis on this phase of the program of work is predicated on the premise that North Carolina will become a STATE PLANNING BOARD Photo taken in office of Governor R. Gregg Cherry, seated left, with As-sociate Justice E. B. Denny, seated right, irho administered the oath of office to the members. Members, left to right, are R. Bruce Etheridge, director. Department of Conserva-tion and Development, secretary; 1>. Hiclen Ramsey, general manager. Asheville Citizen-Times, chairman ; William F. Carr, Durham. Hosiery Mills and Mayor of Durham ; George W. Kane, building contractor, Ro.r-boro: Harry B. Caldwell. Greens-boro, secretary. N. C. Good Health Association ; Felix Grisette, Raleigh, managing director; Irving F. Hall, president State Capital Life Insur-ance Co.. Raleigh; Capus M. Way-nick, director. N. C. Social Hygiene society. Absent member is Robert M. Hemes, president. Wachovia Bank x Trust Co.. Winston-Salem. greater State only to the extent that its communities become greater, that North Carolina in the final analysis is nothing more nor less than the sum of the counties, cities, and towns within its borders, that if localities can solve their local problem the State's problems will largely disappear. There are now 75 local planning agencies of one type or other throughout the State, and the number is increasing regularly. Assistance is rendered these groups by means of staff visitations and consulta-tions, providing a clearing house of information, periodic reports on what other communities are doing, statistical and research assistance, etc. Typ-ical types of assistance rendered local groups follow : "An Over-All Survey of the Needs and Opportunities of Cleveland County" A similar survey in Guilford County (These surveys are intended to serve as guides for other counties) The publication of an outline of a suggested model type of local planning set-up A published report showing population changes in all North Carolina counties since 1940 A printed compilation of basic statistical data on each county A survey of those resources in each county and com-munity which best lend themselves to the attraction of industries and tourists The need and value of this service to North Carolina communities recently prompted Governor Cherry and the Council of State to make available the necessary funds to enable the Board to establish a full-fledged community planning department. As a result of this action, Mr. Edward A. Conover, a com-munity organization consultant of wide experience, (Continued on Page 96) PAGE 76 THE U. C. C. QUARTERLY FALL, 1946 Big Increase In Small Industries In North Carolina By Silas F. Campbell, Director Bureau of Research and Statistics, UCC of N. C. The enviable position of North Carolina with re-spect to stability of its industries and employment is well known. Even during the depression period the ratio of the number on relief rolls to the labor force of the State was approximately 20 percent below the average for the Nation, just as the ratio of employ-ment has been shown to be over a score of years. Its employment is centered largely in production of consumer goods, the demand for which remained strong throughout the period between World War I and World War II. This demand was accelerated during the second war and continues at an even higher level. Serving as a reservoir of labor for war industries, a considerable portion of the State's labor force was lost to other States during the war. The pre-war level of available labor has not yet been restored, though the total non-agricultural labor force for the first time since 1941 reached 700,000 in March, 1946. Many of its manufactures are of the low grade type, since the State fails to take advantage of the opportunity to embrace the final processes of manu-facture in many of its important products, it loses the opportunity to employ workers at higher skill levels and at relatively higher wage levels. Con-sequently, the average per capita weekly wage in North Carolina remains about a third less than the National average, although this average has in-creased from $17.44 per week in 1940 to $31.10 in 1945. The result of these low wage levels doubtless affects the disinclination of North Carolina workers to return to the State with the present wage differ-ential that exists between this and other States. Notwithstanding these handicaps, North Carolina industry was probably less adversely affected by war and demobilization than any other State in which war production was not especially concentrated. There was a general feeling at the beginning of the war that the small operator would be seriously handi-capped and have to go out of business as a result of the war, the reason being : 1. That he would not have sufficient capital or equipment to take large war contracts. 2. That he was not engaged in a type of business considered essential to the prosecution of the war. 3. That the materials he would require for opera-tion or sale would be so restricted that he could not continue to operate. 4. That the skilled labor so employed would be needed, and would find more attractive wages, in essential war jobs. These things all materialized, yet studies which have been based on sizes of firm data do not support the theory that the small employer in North Caro-lina has fared badly on the whole because of war conditions. An analysis made of the fourth quarter of 1942, which was the peak year of employment in North Carolina during the war period, indicated that the number of covered employers of fewer than 100 workers in 1942, was 9236 or 11.9 percent more than in 1940. By the fourth quarter of 1945 the number of em-ployers of fewer than 100 workers had increased to 10, 514, a gain of 2, 261, or 27.4 percent, from 8253 in 1940, notwithstanding the increase in the total number of employers from 1940 to the fourth quarter of 1945 had been only 15.7 percent. In other words, while the total number of covered employers was in-creasing from 9,848 in 1940 to 11,391 during the fourth quarter of 1945, the number of employers with fewer than 100 workers increased from 8,253 to 10,514. It will be seen, therefore, that of the total gain in covered employers of 2,543, 2,261, or 88.9 percent represented employers with fewer than 100 workers. Bringing the figures up to date with respect to all types of employers, it is found that the total number of covered employers has increased from 9,848 in 1940 to 12,790 covered employers during the month of August, 1946, a total increase of 2,942 establish-ments, or 29.9 percent. It is noteworthy that this in-crease of 29.9 percent in business establishments in North Carolina occurred during a period when there was a National decline. A recent report of the Census Bureau indicated that during the war years this de-cline in new establishments reached a total of 15 percent and, while there has been some increases at the National level during the past twelve months, it is estimated that the number is still approximately 12 percent below the pre-war level, while North Carolina is nearly 30 percent above. While the total covered employment in the State has not reached the war level, it was only 7.8 percent below during the second quarter of 1946, the average number being 545,000 as compared to 591,391 for the year 1942, the peak year of the war, and was 16.7 percent above 1940. INDUSTRY TURNOVER 19U2-19U6 There was considerable industry turnover through-out the war period. During the fiscal year 1942- 1943, 943 establishments retired or had their cov-erage terminated. During the fiscal year 1943-1944 the retirements numbered 926. Turnover increased as the end of the war approached. The number re-tiring during the fiscal year 1944-1945 rose to 1,120, and during the fiscal year 1945-1946 increased to 1,216. This is a total of 4,205 establishments, repre-senting 164,719 employees. The reasons why they retired are set forth as follows : Of the total of 4,205 firms, 1,330 ceased operations in the State; 128 firms merged with other covered employers ; 46 firms moved to other areas ; 217 firms were liquidated; 7 closed down temporarily because of seasonality and were later reactivated ; 627 had (Continued on Page 94) FALL, 1946 THE U. C C QUARTERLY PAGE 77 INDUSTRY TURNOVER IN NORTHCAROLINA—FISCAL YEARS 1944-1946 ACCESSIONS FISCAL YEAR TOTAL BIENNIUM RETIREMENT FISCAL YEAR TOTAL BIENNIUM INDUSTRIAL CLASSIFICATION 1944-1945 1945-1946 1944-1946 1944-1945 1945-1946 1944-1946 No. Firm , Emp. No. Firm Emp. No. Firm ; Emp. No. Firm i Emp. No. Firm > Emp. No. Firm i Emp. 1,02!) 30,300 2,070 07,830 3,705 98,142 1,120 50,683 1,216 53,090 2,336 103 773 Agriculture, Forestr. * Fishing 2 27 9 101 11 188 5 119 5 119 7 2 132 29 7 4 132 56 5 119 5 119 Forestry 2 27 16 283 31 1,351 47 1,634 47 1,160 23 1,256 70 2,410 1 62 2 1 28 119 29 1,203 3 1 43 181 29 1,424 1 17 1 17 Crude-Petroleum & Natural-Gas Production 15 221 46 1,143 23 1,256 69 2,399 98 2,954 378 9,127 476 12,081 92 14,886 93 12,981 185 27,867 20 18 54 496 1,597 861 169 57 152 4,573 2,426 2,128 195 75 206 5,069 4,023 2,989 25 19 48 1,347 11,928 1,611 23 21 49 3,872 7,537 1,572 48 40 97 5,219 19 465 3 183 Manufacturing - 391 19,533 876 34 , 202 1,267 53,735 361 17,840 444 25,940 805 43,780 1 35 2 54 13 213 29 3 4 5 7 5 270 718 2 11.499 904 3,320 833 13 111 207 1,041 158 121 1 111 5 202 49 626 134 6 15 10 10 36 13 5 1 1 24 2 16 270 3,637 42 28,567 2,303 9,423 5,072 19 126 501 1,085 784 290 150 15 65 .542 17 683 1 38 40 2,031 1 74 1 111 24 439 09 4 7 8 17 3 12 1 40 76 3 148 30 413 105 3 8 6 5 29 8 5 1 1 16 2 11 2,919 40 17,068 1,339 6,097 4,239 78 87 294 44 026 169 150 15 05 329 17 626 36 1 35 7 214 27 2 5 3 3 12 2 1,497 3 528 Tobacco Manufactures Textile-Mill Products - 5,741 962 5,799 1,526 58 138 378 1,030 231 89 42 76 17 225 42 2 2 2 5 5 1 10 1 7,384 1,196 5,037 2,213 57 34 70 52 226 24 7,189 8 13,125 2 158 10 830 3 739 115 172 448 1 082 457 113 7 231 Nonferrous Metals and their Products 8 Electrical Machinery Machinery (except Electric) 8 213 5 1 6 116 00 173 12 165 17 1 11 281 00 Miscellaneous Manufacturing Industries. - . _ 5 57 5 214 387 Transportation, Communication and Utilities 03 1,348 106 1,028 169 2,976 79 4,917 45 1,049 124 5,960 3 17 20 1 2 14 143 575 47S 10 13 129 6 42 38 54 742 519 9 59 04 1 16 13 197 1,317 997 10 138 147 170 1 26 16 14 1,500 405 3 26 15 1 42 710 287 10 4 52 31 1 56 2,210 Other Transportation Except Water 692 10 Services Allied to Transportation N. E. C __ 5 2 13 125 18 170 Telegram and Telephone and Related Services 35 1 2,975 23 35 1 2,975 Utilities : Electic and Gas 23 Wholesale and Retail Trade __ 341 4,300 948 14,800 1,289 19,100 370 8,230 423 7,258 793 15,488 Full-Service and Limited-Function Wholesalers Wholesale Distributors, Other 48 50 4 21 14 19 3(1 48 97 4 659 420 58 288 128 221 497 579 1,437 19 142 170 26 71 31 121 70 135 109 4,220 1,263 321 2,105 302 1,455 1,153 1,494 2,376 45 190 220 30 92 45 1411 100 183 200 11 4,885 1,083 88 380 173 301 003 2,073 3,813 30 38 27 2 21 22 15 34 79 12S 4 2,619 394 487 469 301 336 546 742 2,234 42 57 34 9 20 18 27 44 OS 133 7 1,057 309 171 820 205 558 908 1,007 2,095 68 95 61 11 47 40 42 78 147 261 11 3,676 703 Wholesale and Retail Trade Combined, N. E. C. . . 658 1,289 Retail Food and Liquor Stores 566 894 Retail Apparel and Accessories 1.514 Retail Trade, N.E. C .__ 1 , 749 4,329 110 Fiance, Insurance and Real Estate 10 127 70 1,330 86 1.457 29 255 75 1,293 104 1.548 4 2 16 18 11 17 1 1 30 5 240 098 100 179 10 2 4 19 24 11 20 1 1 30 29 201 706 160 259 10 2 4 3 24 15 8 4 2 11 2 10 39 13 45 20 138 4 21 60 2 16 1 39 19 49 255 939 268 Insurance Carriers 984 20 Real Estate 3 80 6 1 89 10 227 10 Service Industries 102 1,728 258 5,237 300 6,965 137 3,276 113 3,313 250 6.589 Hotels, Rooming Houses, Camps 15 57 1 1 3 o 10 276 1,129 55 6 6 28 22 136 28 119 16 4 16 14 13 22 8 2 7 9 048 2,303 201 712 204 177 141 387 107 31 308 18 43 176 23 5 17 17 15 32 8 3 10 11 924 2,432 256 718 210 205 163 523 107 61 345 21 28 68 8 3 5 3 617 1,781 268 13 40 25 17 96 837 2,476 45 164 8 3 5 3 1,454 Personal Services 4,257 268 Employment Agencies and Commercial and Trade 13 40 Miscellaneous Repair Service and Hand Trades 25 14 o 1 4 1 180 3 30 318 1 14 2 1 4 1 180 3 1 3 2 30 37 3 30 Other Professional and Social-Service Agencies 318 Nonprofit Membership Org 1 PAGE 78 THE U. C. C. QUARTERLY FALL, 1946 Identifying and Locating Unemployed In North Carolina By Hugh M. Raper, Supervisor, Reports and Analysis, Bureau of Research and Statistics Who are the unemployed? What industry groups pensated dropped from 5412 in July to 3873 in Sep-are they separated from? tember, a 28.44 percent decline. Where are they located? About 27,200, or 32 percent of the weeks com- . , . ,, TT ., , pensated during the quarter were for unemployed In this period when employment in the United m^ &nd almogt two.thirds of this number lost States is at its peak, and at a time when North Caro- WQrked in ^ manufacturing industries, with the lina covered employment approaches the 1942 high ^ number ated from the Textile Mm level, it seems appropriate to examine the unem-products group and the Transportation Equipment ployment situation to learn something of the con- Manufacturing Group which includes ship-building ditions which account for the presence of more than and aircraf t tg duction The only other size. 28,500 individuals in our employment offices m an aWe (g 3g3) were a ated from employ_ ^28 1 q4fi nng W^ ^ g P ment not covered by the Unemployment Compensa-be ' tion Act, i.e. agriculture, non-covered employers of In order to understand this anomaly, a study has less than 8 workers, etc. During the months corn-been made of the payment activity of the Unem- prising the quarter the number of payments to males ployment Compensation Commission in the Admin- dropped from 10,917 weeks in July to 7,327 in Sep-istration of its program and of the readjustment tember, a 32.88 percent decline. allowance program. During the third quarter of In a consideration of the unemployment situation 1946 unemployed workers under the Unemployment it is well to locate tne areas wnere the unemployed Compensation Program were compensated for 84,990 are foimd since the answer to unemployment is em-weeks of unemployment, receiving approximately ployment opportunities. To get this picture in the $985,000 in benefit payments. Unemployed veterans proper perspective, the following table relates weeks under the Readjustment Allowance Program re- of unemployment compensated to number of cov-ceived during the third quarter payments for more ered workers by areas. than 320,000 weeks amounting to more than $6,400,- n . , 000.00. RZk1 Average No. No. of Weeks Compensated UNEMPLOYED UNDER U. C. PROGRAM Arca Covered Compensated to Covered workers \ird. (J. workers in For the sake of clarity, it is best to consider the two in 19^5 1946) 1946 programs separately in terms of the queries stated Coastal 66 500 23 140 34.80 above. Of the 84,990 payments made under the un- PiedmontZZZZZZZZZ!." 364 ,'500 45 ,'580 12.50 employment compensation program, 57,785, or 68 Jf oun f ta c in ----- 9^00 9.376 10.08 , i , „ , i T , . „ Out-of State : 9,500 6,886 72.48 percent, were made to female workers. It follows then that about 7 out of 10 of our unemployed The unemployment situation in the Coastal Area is workers are women. To get at the type of women largely the result of the seasonal nature of the tobac-workers unemployed, a study has been made showing co processing and fertilizer industries which con-the industry from which they were separated. It is stitutes a sizeable portion of covered employment of found that 86.5 percent of the female workers un- this area. The resumption of tobacco processing employed and in payment status were engaged in a operations in the latter part of the quarter brought manufacturing industry or in the wholesale and re- about a 92 percent drop between July and September. tail trade group. More specifically the analysis re- The 72.48 ratio of weeks compensated to out-of-state veals that almost 60 percent of the female unem- covered workers is partially explained by the fact ployed receiving payments were separated from one that most of the workers coming into the state during of the following three industry groups : (1) Industry the war period were used in positions requiring 21, Tobacco Manufacturing which includes the stem- highly specialized skills for which little employment mery workers of tobacco companies (5,410 workers) ; opportunity now exists and the fact that during the Industry 50, Full-Service and Limited Function year more than 15,000 out-of-state workers actually Wholesalers, including the processing of leaf tobacco were engaged in employment in this State. by other than the manufacturers (14,302 workers) ; Generally the unemployment situation is on the and, (3) 14,364 female workers separated from Tex- down-grade, and the fourth quarter picture will tile Mills of all kinds. likely show a drop from the third quarter in weeks An examination of the unemployment figures by compensated and amount paid of as much as 20 per-months leads one to believe that most of the unem- cent- btThP ^nf w!3'Processing field were at work UNEMpL0YED UNDER READJUSTMENT by the end of September for in July compensation to , TT nw A ATrj7, wnrvA m these separated workers covered about 14000 weeks ALLOWANCE PROGRAM while in September less than 1300 weeks were com- During the Third Quarter unemployed veteran pensated, a decline of 92.4 percent. In the Textile claimants were compensated for 322,468 weeks of Mill products field the weeks of unemployment com- unemployment and the payments to these veterans FALL, 1 946 THE U. C. C. QUARTERLY PAGE 79 UNEMPLOYED MUST SEEK JOBS TO QUALIFY FOR BENEFITS The G. I. Bill of Rights and the State UCC law pro-vide, among other requirements, that an unemployed individual shall be eligible to receive benefits with respect to any week only if the State Unemployment Compensation Commission finds that he is able to work and is available for work. The Commission, as explained by Chairman Henry E. Kendall, has adopted the policy that to be available for work an unemployed individual must actively seek work on his own initiative, in addition to the requirement that he must register for work each week with the Employ-ment Service. When a claimant, veteran or regular UCC claimant, first applies to the UCC claims taker for veteran allowances or benefits under the regular UCC pro-gram, he is advised by the claims taker that it is his duty to seek employment on his own behalf, as well as to report in person to any jobs which he Employ-ment Service may have to offer him. If or when a claimant has drawn benefits for an extended period of continuous unemployment, then he may be considered as having eliminated himself from the labor market and the claims taker, under Chairman Kendall's instructions, is directed to in-quire into what steps he has taken on his own initiative to find a job, submitting the dates, names and address of employers he may have contacted and the results of his effort to find work. The claims taker, if not entirely convinced that the claimant has actively sought work, as reported, will seek to con-tact the employer to verify statements made by the claimant and record his findings. Cases of claimants who do not convince the claims takers of their efforts to find work are to be referred to UCC claims deputies who will conduct investiga-tions and make determinations Unless good reasons exist for failure of claimants to seek work actively, then, in accordance with Chair-man Kendall's statement of policy, claimants will be considered to have withdrawn themselves from the labor market and therefore, are not available for work, in which cases allowances and benefits will be halted, pending final dispositions of the cases. amounted to $6,427,995.00, slightly under the pre-vious quarters' payments. It is seen that veterans unemployment during the quarter accounts for al-most four times as much unemployment as that ex-perienced by other workers. The quarterly figures, however, do not show a true picture of the veterans unemployment situation in that a considerable improvement was made in the quarter which carries on into October the first month of the fourth quarter. A comparison of the payment activity for the first twenty-one days of each of the last four months gives a picture of the downward trend in veterans unemployment, The table including data for Oc-tober, 1946 follows : DECIDED DECREASE IN BENEFIT PAYMENTS IN FALL MONTHS A definite decrease in unemployment in North Car-olina in recent weeks, of both veterans and non-vet-erans, is reflected in the drop in checks issued for servicemen's readjustment allowances and regular unemployment benefits. Veterans' claims for unemployment allowances re-sulted in the issuance of 24,193 checks for the week ending June 22. By the week ending August 10 this number had increased to 25,190, the peak, while for the week ending October 5, the number of checks issued to unemployed veterans had decreased to 17,- 647, representing a drop of about 30 percent from the peak. Unemployed workers in the regular UCC program filed claims resulting in the issuance of 11,120 checks for the week ending June 22, dropping to 5,264 by the week ending August 10. By the week ending October 5, only 4,062 checks were issued, a drop to slightly more than one-third of the number issued during the peak week ending June 22. Incidentally, seasonal tobacco workers were largely responsible for that peak, which levelled off when the leaf tobacco season started. In case of self-employed veterans who are not avail-able for referral to jobs, 24,954 claims were filed in May and the number in July was 26,956, the peak. In September 17,804 claims were taken, a drop of 34 percent from July. Self-employed veterans, since more than 90 percent of them are farmers, showed a further decided drop in the fall, since many of the farm crops reached the market and the incomes of these farmers exceeded the $100 a month, up to which figure the U. S. Govern-ment supplements the self-employed veteran's in-come. %Change %Change Period Weeks From Prior Amount From Prior Compensated Month Month July 1-21 79,003 -4.17 1,578,260 -4.07 August 1-21 78,205 - 1.02 1,561,467 - 1.06 September 1-21.. 66,786 -14.60 1,333,038 -14.63 October 1-21 39,314 -41.13 784,653 -41.22 For the most part the unemployed veterans have not been employed following their discharge from the service. In fact a recent study shows that less than 20 percent of the unemployed veterans have had em-ployment following their discharge. For this reason it follows that the cause of the unemployment of veterans is one of adjustment or an eventual absorp-tion into some field of employment that most nearly fits his requirements. In viewing the veterans unemployment situation it is significant to note that unemployment allowances under the Readjustment Allowance Program may protect the continuously unemployed veteran up to 52 weeks following his discharge, while the pro-tection given to workers under the U. C. Program (Continued on Page 94) PAGE 80 THE U. C C. QUARTERLY FALL, 1946 Trends In Covered Employment, Weekly Wages, 1942-1945 By Silas F. Campbell, Director, Bureau of Research and Statistics As in World War I, employment in North Carolina during World War II reached its peak about a year earlier than in the country as a whole. This is at-tributable to the fact that North Carolina produced largely consumer goods to equip the army and supply allied nations. The construction of cantonments and military bases necessary for training troops was also concentrated in this area. As early as 1941, covered employment in North Carolina for the first time exceeded half a million workers, and in 1942 reached a peak of 591,391, with more than 600,000 during four months of the year. From this point there was a downward trend which was accentuated by the release of approximately 70,000 war workers in August, 1945. Despite this layoff following V-J day July was the low month of 1945 with 509,352 covered workers. The depressing effect of war contract cancellations was only temporary- By September employment had increased to 527,527, and the year ended with 539,180 in December. Since July 1945 the trend has been consistently upward. The average for the second quarter of 1946 was approximately 540,000. Although this is 11,000 below the average for 1944, it is 14,000 above the average for 1945, with many employers unable to hire much needed labor. By the second quarter of 1946 employment was only 8.7 parcent below the highest war level. EMPLOYMENT TRENDS BY INDUSTRIES Although there was a general decline in covered employment from 1942 to 1945 of 11.0 percent the level of employment in 34 industry groups was higher in 1945 than in 1942. Only in Mining and Construction was there a decline in all sub-divisions of the industry. Both Agriculture and Forestry showed improvement, as did eleven of the sub-divisions of Manufacture, four divisions in the Transportation, Communication and Public Utilities group, six in the Wholesale and Retail Trade group, two in the Financial group and nine out of twelve in the Service industries. In two of the major war industries in this State, Ordnance and Electrical Machinery manufacture, employment was at a higher level in 1945 than in 1942. Ordnance manufacture was just getting under way in this State in 1942, the average number em-ployed that year being only 769. It reached a peak of 20,487 in March 1944, from which point it de-clined to 396 in December 1945, but with an average for the year of 6,258. Only 61 workers were employed in the manufac-ture of electrical machinery in 1942. However, the manufacture of electrical apparatus for aircraft and ordnance brought employment up to 6,004 in July 1945, with an average for the year of 3,574, only 287 workers being employed in December, 1945. The increased demand for automobile tires and a let up jn the restrictions on rubber brought an in-crease in employment in the manufacture of rubber products, largely tire recapping, of 494.8 percent in 1945 over 1942, or from 134 workers to 797. The strain on Street Railway Service was con-siderably relieved by increased employment of 235.5 percent in 1945 over 1942, while employment in Bus and Taxi Service increased from 2,705 workers in 1942 to 4,465 in 1945. Wholesome gains were also made in Wholesale Trade, with nominal increases in employment in Re-tail General Merchandise and Automotive Establish-ments, while employment in Eating and Drinking Establishments increased by 47.7 percent. In the Finance group, banks and investment com-panies experienced increases in employment of 28.5 and 21.4 percent respectively. INCREASE IN SERVICE INDUSTRIES There was increased employment in nearly all Service industries. The greatest relative increase was in Trade Schools, which were virtually abolished during the war. Employment in Business Services increased by 33.0 percent, in Personal Services by 16.1 percent, and in Amusement and Recreation in-dustries by 19.7 percent. Employment in Educa-tional Institutions also increased by 11.8 percent. Among the industries in which employment de-clines occurred, Construction suffered the greatest loss in volume, with a decline of 74.9 percent, re-presenting a layoff during the period 1942-1945 of 42,111 workers. Employment in Mining also declined by 21.5 per-cent. Other industries suffering employment de-clines in excess of 25.0 percent are, Stone, Clay and Glass, 26.3 percent; Nonferrous Metals, 28.8 per-cent; Petroleum and Coal Products, 100.0 percent; Water Transportation, 62.9 percent; Lumber and Building supplies, 41.1 percent; Credit Agencies, 37.7 percent; Real Estate Agents, 41.8 percent; Profes-sional Service, 87.9 percent, and Non-Profit Organi-zations, 73.2 percent. The result of these fluctuations was that employ-ment in Agricultural Services increased by 66.1 per-cent; Mining declined by 21.5 percent; Construction, by 74.9 percent; Manufacture by 8.4 percent; Fi-nance, Insurance and Real Estate by 6.1 percent; while Transportation, Communication and Public Utilities increased by 2.6 percent; Trade by 10.5 percent; and Service Industries by 5.4 percent. TRENDS IN WAGES BY INDUSTRIES Only in the Construction sub-group of general contract work was there a decline in the average per capita weekly wage between 1942 and 1945. This was occasioned by the layoff of large numbers of highly skilled workers employed in 1942 in the con-struction of army bases, and here the decline in average weekly wages was only a tenth of one per-cent. (Continued on Page 97) FALL, 1946 THE U. C. C. QUARTERLY PAGE 81 TRENDS lft COVERED EMPLOYMENT AND AVERAGE WEEKLY WAGES 1942-1945 TOTAL ALL INDUSTRIES. AVERAGE EMPLOYMENT 1942 591,391 1945 526,357 Percentage Change 11.0 AVERAGE WEEKLY WAGE 1942 23.75 1945 31.10 Percentage Change + 30.9 Agriculture Forestr. and Fishing. 01 and 07 Agriculture 08 Forestry 09 Fishing. ___ ____ .__. 322 535 470 59 6 + 6G.1 + 72.2 + 78.8 18.42 18.67 16.18 29.64 29.51 31.32 23. S4 + 60.9 + 58.1 + 40.4 Mining. 3,557 2,791 - 21.5 20.83 30.08 + 44.4 10 Metal Mining 12 Bituminous and other soft-coal Mining 14 Noninetallic Mining and Quarrying. _ Contract Construction. _ _ 15 Building Construction-General Contractors. 16 General Contractor Other than Building 17 Construction Special Trade Contractor 123 23 3,411 56,214 40,322 7,884 8,008 107 22 2,662 14,103 6,678 2,394 5,031 - 13.0 - 4.3 - 21.9 - 74.9 - 83.4 - 69.6 - 37.2 21.67 25.04 20.78 37.59 32.96 28.79 27.77 37.98 40.28 29.64 36.51 32.94 38.47 40.32 + 75.3 + 60.9 + 42.6 + 15.6 - .1 + 33.0 + 5.2 Manufacturing. ,*7!l 354,191 - 8.4 22.92 19 Ordance and Acessories -- 20 Food and Kindred Products 21 Tobacco Manufactures.. 22 Textile-Mill Products 23 Apparel and other finished Products made from Fabrics. 24 Lumber and Timber Basic Products 25 Furniture and Finished Products 26 Paper and Allied Products 27 Printing Publishing and Allied Products 28 Chemicals and Allied Products 29 Products of Petroleum and Coal 30 Rubber Products. 31 Leather and Leather Products 32 Stone, Clay and Glass Products 33 Iron and Steel and their Products. 34 Transportation Equipment (Except Autos) 35 Nonferrous Metals 36 Electrical Machinery 37 Machinery (Except Electrical) 38 Autos and Auto Equipment .._ 39 Miscellaneous Manufacturing Industries 709 14,485 20,243 236,522 8,767 30,893 28,721 6.84S 3,409 5,456 21 134 1,648 3,889 1,750 15,766 1,429 61 3,379 1,042 647 6,258 15,065 23,965 204,953 7,873 23,524 27,038 6,344 3,428 5,644 797 1,586 2,867 2,211 12,050 1,017 3,574 3,479 1,579 939 +713.8 + 4.0 + 18.4 - 13.3 - 10.2 - 23.9 - 5.9 - 7.4 + .6 + 3.4 -100.0 +494.8 - 3.8 - 26.3 + 26.3 - 23.6 - 28.8 + ' + 3.0 + 51.5 + 45.1 32.01 24.39 26.58 21.71 16.63 14.75 21.58 34.00 33.03 25.00 26.00 27.40 24.10 21.04 31.68 45.12 34.17 22.02 32.81 26.29 16.77 31.13 40.89 32.37 34.34 29.47 23.67 21.75 27.33 45.23 41.88 34.80 31.13 32.64 30.04 39.88 58.39 45.49 35.18 38.88 39.72 23. s» + 35. + 27.7 + 32.7 + 29.2 + 35.7 + 42.3 + 47.5 + 26.0 + 33.0 + 26. S + 39.2 + 13.6 + 35.4 + 42. + 25.9 + 29.4 + 33.1 + 59.8 + 18.5 + 51.1 + 42.5 Transportation, Communication and Other Public Utilities. 23,277 23,879 + 2.6 29.27 37.37 + 27.7 4 1 Local Railways and Bus Lines 42 Trucking and Warehousing for hire 43 Other Transportation Except Water 44 Water Transportation 45 Services allied to Transportation N. E. C 46 Telephone and Telegraph 48 Utilitices: Electricity and Gas 49 Local Utilities and Public Services, N. E. C 197 8,488 2,705 143 426 5.412 5,891 15 661 6,776 4,465 53 548 5,942 5,422 12 +235.5 - 20.2 + 05.1 - 62.9 + 2S.6 + 9.8 - 8.0 - 20.0 27.06 24.14 34.19 5.84 20.24 28.56 32.10 20.50 36.31 34.69 42.41 31:00 27.49 34.82 40.58 31.91 + 34.2 + 43.7 + 24.0 +430.8 + 35.8 + 21.9 + 26.2 + 55.7 Wholesale and Retail Trade. 85,416 94,397 + 10.5 22.17 29.60 + 33. 50 Full-Service and Limited Function Wholesalers 51 Wholesale Distributors other than Full-Service and Limited-Function Wholesalers. 52 Wholesale and Retail Trade N.E.C.. 53 Retail General Merchandise 54 Retail Food and Liquor Stores 55 Retail Automotive 56 Retail Apparel and Accessories 57 Retail Trade, N. E. C 58 Eating and Drinking Places 59 Retail Filling Stations 15,369 12,408 3,264 22,873 6,874 5,371 5,079 8,806 4,456 916 20,647 13,816 1,921 24,649 6,541 5,587 4,960 8,962 6,583 731 + 34.3 + 11.3 - 41.1 + 7.8 4.8 4.0 2.3 1.8 47.7 20.2 25.73 36.44 26.08 13.98 18.06 27.52 17.21 25.22 13.53 22.17 Fianance, Insurance and Real Estate. 10.378 9,741 - 6.1 34.62 33.19 41.49 32.09 20.31 26.46 40.93 27.25 32.23 18.99 31.55 43.05 + 29.0 + 13.9 + 23.0 + 45.3 + 46.5 + 4S.7 + 5S.3 + 27. S + 40.4 + 42.3 24.4 60 Banks and Trust Companies 61 Security Dealers and Investment Brokering 62 Finance Agencies, N. E C 63 Insurance Carriers Ii4 Insurance Agents, Brokers and Services. 65 Real Estate . 66 Real Estate, Insurance LoansLaw Offices: Any Combination. 67 Holding Companies (except Real Estate) 2,848 137 879 1,707 319 1,353 132 3 ,457 176 548 ,372 286 788 111 3 21.4 28.5 37.7 7.1 10.3 41. S 15.9 34.33 49.87 33.87 39.12 36.53 18.34 30.33 28.24 Service Industries. 25.34S 26,720 + 18.89 70 Hotels, Rooming Houses, Camps 72 Personal Serv ices 73 Business Services, N. E. C 74 Employment Agencies and Commercial and Trade Schools.. 75 Automobile Repair Scrvce and Garages 76 Miscellaneous Repair Service and Hand Trades 78 Motion Pictures -— 79 Amusement and Recreation and Related Services, N. E. C 80 Medical and Other Health Services 82 Educational Institutions and Agencies. _ ._ 83 Other Profession and Social-Service Agencies and Institutions. 86 Nonprofit Membership Organization. 4,460 11,791 1,050 43 773 S5S 2,792 930 644 34 1,289 672 4,491 13,685 1 405 108 842 920 3,343 941 622 38 156 169 + .6 + 16.1 + 33.0 + 151.2 8.9 + 19.7 1.2 - 3.4 + 11.8 — 87.9 - 73.2 12.31 14.69 34.59 18.21 23.40 36.23 19.96 16. OS 18.35 19.81 44.89 28.04 40.69 S5.02 40.84 40.56 39.04 26.92 46.65 46.92 23.30 18.77 20.82 42.26 27.80 34.90 39.46 22.53 20.16 24.54 25.02 45.51 45.20 + IS. 5 + 70.5 + 20.6 + 19.0 + 6.9 + 46.8 + 53. + 66.1 + 23.3 + 52.5 + 41.7 + 22.2 + 52.7 + 49.1 + S.9 + 12.9 + 25.4 + 33.7 + 26.3 + 1.4 + 61.3 No. covered employment in 1942 No. covered employment in 1945 PAGE 82 THE U. C. C. QUARTERLY FALL, 1946 Apprentice Training Being Revived In N. C. Industries By M. R. Dunnagan, Informational Service Representative Apprentice training, second only, in point of time, to house work as a method of developing skilled artisans, is experiencing a revival in North Carolina since V-E Day, after almost complete stoppage during the active war period, due, in large measure, to the provisions of this type of training in the G. I. Bill of Rights. It is a matter of record that King Solomon started the work on his great Temple with 33,000 apprentices, men who became fellowcrafters and later master workmen as their skills increased. History reveals that many of the best known in-dividuals of all time served their apprenticeships and went on to carve their names high in the records of world accomplishment. Michael Angelo started his training at the age of 13. Rembrandt was apprenticed as an architectural painter. William Caxton, Eng-land's first printer, was an apprentice. In America, it is revealed that Benjamin Franklin, at a tender age, was apprenticed to a printer in Bos-ton. Paul Revere served an apprenticeship to become a silversmith before he made his famous ride. The late Walter Chrysler, and William S. Knudsen, mod-ern figures, were apprentices. Even in North Caro-lina one shining example of the success of apprentice training is former Governor and now U. S. Senator Clyde R. Hoey who served his time as "printer's devil" in Shelby and Charlotte before becoming a successful publisher. Although apprentice training for higher skills has been in vogue longer than history records, it has been neglected in recent years, to such an extent that the skilled artisans have been passing out of the picture more rapidly than they have been recruited, leaving many unfilled places. Just as the nation is now realizing that it must sponsor reforestation and land reclamation to prevent denuded forests and lands, it is also realizing that apprentice training must be supported and encouraged to keep alive the skills it requires years to master. Congress, in its wisdom, has seen fit to foster and assist in apprentice training, specifically for return-ing war veterans, through the G. I. Bill of Rights. The Veterans Administration provides for allowances of $65 a month to a single veteran or $90 a month to veterans who are married or have dependents, in addition to contract wages paid by the employer. Al-so, the veteran receives tools needed in the perfection and completion of the trade as he and his employer agree he should have. This is one of the recent evidences that the people of the United States are recognizing that much of the nation's wealth and power is due to the ingenuity and the skill of its craftsmen, and one of the steps taken to encourage its younger men, and especially returning war veterans, to enter training to take the places of the rapidly depleting ranks of artisans in many sorely needed skills. The 1940 Census revealed that at that time the skilled labor force in the entire nation was only 5,400,- 000 persons. To maintain that force, with no allow-ance for expansion, it would require that 105,000 ap-prentices complete their apprenticeship training each year Since four years may be considered an average period for such training, it would require that 420,000 apprentices should be in training at any given time, with no allowance for turnover, in order to keep the normal ranks filled. During the war period, it was found that the nation was woefully lacking in skills of proper types to pro-duce its machines, guns, tanks, airplanes, ships and other war demanded equipment. It became neces-sary, in many instances, to "break down" the skills and divide up the work so two or three men could perform the duties of one skilled artisan. That was another reason for the realization that it would be necessary to encourage and support the apprentice training program in order to develop more skilled craftsmen to supply the requirements of the nation. North Carolina, for several years, has had a splendid apprentice training law and program. Under the law and under direction of the State Apprentice-ship Council which it created, minimum standards, conforming to Federal standards, have been set up. All apprenticeship programs must meet minimum re-quirements as to pay, hours, working and other con-ditions. A standard form of indenture, or agreement, is entered into by the employer and the apprentice, with approval by the State Apprenticeship Council. North Carolina's apprentice program is operated as a division of the State Department of Labor. For-rest H. Shuford, State Commissioner of Labor, is chairman; George Coggins, State Director of Trade and Industrial Education, is vice-chairman, and Clar-ence L. Beddingfield is State Director. Management and Labor are equally represented in the Council's membership. Labor members are E. D. Faires, Char-lotte; Harry G. Waynick, Greensboro, and E. T. Dorrity, Winston-Salem, and the management mem-bers are A. J. Fox and L. P. Kennedy, Raleigh, and R. M. Kerman, Wilmington. In addition, the Federal Government has in North Carolina under the U. S. Department of Labor and working with Ernest C. McCracken, State Director of the United States Employment Service in North Caro-lina, an area supervisor, R. E. Paschal, with head-quarters in the Caswell Building, Raleigh, and two field representatives, J. B. Archer, Charlotte, William M. Chisholm, Winston-Salem. Mr. Paschal with the two field representatives and Mr. Beddingfield co-operate in activities throughout the State. They pro-mote apprentice training, prepare standards for each type of training and offer a follow-up service in an advisory capacity with apprentices and employers. They do not dictate, but consult with employers as to FALL, 1946 THE U. C. C. QUARTERLY PAGE 83 their relations with apprentices, and are available for help or suggestions when called upon. During the past eighteen months, due to the im-petus given the program by the provisions for help under the G. I. Bill of Rights, the field representatives and Mr. Beddingfield have had approved and certified (by December 31) about 450 North Carolina firms as suitable for giving apprentice training, with an av-erage of four apprentices each. In practically all cases, or as the employer and the apprentice may agree, school training is offered to apprentices' co sup-plement their mechanical training. Chief distinctions between apprentice training and vocational training is the difference in time required for the training and the extent of the skills achieved. In apprentice training, the time required for mastery of a skill varies from two to as high as seven years. In vocational training or education the time required is usually two years, or even less in some cases re-quiring more modest skills. For example, it requires seven years to master the skills required of a die sinker and five or six years to develop an efficient printer or compositor. Many individuals can be-come reasonably proficient as clerks or sales persons within six months or a year. More than 100 different types of skills are avail-able for apprentice training in North Carolina and the numbers will be extended as more of the many firms which are now qualified to give this class of training are certified and approved for giving training in skills required in their plants In fact, it can be said that in practically any industry in operation in the State some type of skill is used and can be acquired through apprenticeship training. A few readily recognizable industries in which sev-eral types of skills are needed every day and every hour include textiles, in which loomfixers, machinists and general maintenance mechanics are required; dairying, which requires refrigeration mechanics and millwrights ; railroads, needing machinists, elec-tricians, carpenters, steel and iron workers, foundry-men, plumbers, steam fitters, blacksmiths and boiler workers. These examples could be multiplied many times. In the list of more than 100 types of skills which are available or can be made available are practically all of those which are in demand in North Caroina and which must be developed to meet the demands of post-war development in the State Alphabetically this list, subject to change, follows : Airplane mechanic, artificial limb maker, asbestos worker, automotive mechanic, baker, barber, book-binder, blacksmith, boatbuilder (small wooden), boil-ermaker, brace maker, general ; brickmason or brick-layer, business-machine mechanic, butcher, cabinet-maker, carmen, railroad ; carpenter, carpenter, ship ; cement finisher, chef or cook, compositor or printer, coppersmith, coremaker, cosmetician, dental tech-nician, designer, die ; designer, tool ; diamond sawyer, diamond lopper, diamond brilliandeerer, die maker, die sinker, draftsman, dressmaker (custom) ; Electrician : aircraft, construction, industrial, WILL DEPRESSION GIVE SOCIAL SECURITY TEST? (Editorial, The Raleigh (TST.C.) Times, November 13, 194G) Assertion by Social Security Commissioner Arthur J. Altmeyer that this country has seven billion dol-lars on hand to fight any possible depression is heartening in most ways, if somewhat discouraging in its basic premise that a depression in the near future really is possible, and perhaps probable. At a time of peak employment like the present, Social Security payments have come in for substan-tial criticism on the ground that they have encour-aged voluntary unemployment, with a consequent decrease in production. Yet, a substantial number of the recent Social Security disbursements have actually been necessary, and those who have drawn unemployment compensation payments needlessly will suffer later, if and when a recession or depres-sion takes shape. Social Security, like other Federal agencies, is supported by taxes, and unlike some other agencies is at present showing that all the money paid in by the taxpayer is not going to finance current govern-mental functions. The operations of Federal agencies are highly ramified, and not always understandable to the man in the street, yet the wisdom of building up an ade-quate Social Security fund should be apparent to everyone. Personal and national prosperity alike suffer their ups and downs, and the only way to pre-pare for the future is to accumulate funds in a time of comparative prosperity. Perhaps the future will show that contributions to Social Security at the present level are too high, yet the only wise policy is one of deliberate overestima-tion. If and when a new depression comes, Social Security will get a practical test, and a guide to changes in the system can be established on the basis of actual facts, rather than untested theories. maintenance, lineman; electroplater, elevator me-maintenance, lineman ;electroplater, elevator mechan-ic, engineer, wood treating; engraver, glass blower (nonmechanical), glazier, glove cutter, table; gold-smith, instrument maker, instrument mechanic, iron worker, structural ; iron worker, ornamental ; jeweler, jog builder, joiner, lather, metal; lather, wood; lead burner, lens grinder, linoleum, carpet and soft tile layer ; loom fixer ; Machinist : aircraft, automotive, marine, railroad, shipyard; meat cutter, mechanic, maintenance; mill-man, millwright, model maker (jewelry, aircraft, etc.), molder, mold maker, jewelry ; motor repairman, electric ; operating and stationary engineer ; painter, paperhanger, patternmaker (metal-wood), pipefitter, plasterer, plumber, pressman, printing; radio repair and service mechanic, refrigerator, rigger, sewing machine mechanic (garment industry) ; Sheet metal worker: aircraft, automotive, con-struction, industrial, shipfitter, shipwright, ship lofts- ( Continued on Page 93) PAGE 84 THE U. C. C. QUARTERLY FALL, 1946 Where Are The Workers In North Carolina Industries? By Benton Bray, Former Director, Reports and Analysis Division, Employment Service Division Where can we find workers to man our new textile plant? Is there available space in your town for a shirt factory? Do you have enough trained loopers to open a new hosiery mill? Can we staff a plant employing two thousand people by the first of the year? All these questions represent the post-war cry of both old and newly established industrial firms in North Carolina. Never before in this State's economic history has there been such a degree of ex-pansion. Not only are North Carolina firms and capital interested in this State's economic future but also outside interests are looking toward this State for future plant sites. This means that Chambers of Commerce, trade associations, enterprising civic leaders and, in general, all those who are interested in the growth and welfare of North Carolina are desirous of the latest labor information. It is a well established fact that North Carolina has certain definite factors, as tobacco, cotton, electric power and capital, to offer industry. But the questionable factor today is the quantity and trained quality of the ever-fluctuating labor force in North Carolina. Realizing the necessity of giving to industry the best possible information, the Employment Service has adopted as one of its cardinal points in the post-war program that of furnishing labor market infor-mation. During the war, labor market information was in general treated "confidential" and rightly so. Now these valuable data are and must be given to the employers, civic and local planning groups, schools, labor unions, and other government agencies. This means that the Employment Service is placing the problem of furnishing labor information to the pub-lic on a plane equal to the placement of job applicants and the furnishing of special services to veterans. Likewise, as a part of the cooperation between the Employment Service, United States Department of Labor, and the various states in the establishment and maintenance of the national system of public employment offices is the development and main-tenance of labor market information. One of the standards of operations by the states of the employ-ment offices is the maintenance through the state administrative offices and the local offices of effective labor market information. This information is to be analyzed and issued publicly for the information of all people on current labor market developments, on employment trends, and on the opportunities for em-ployment. It naturally is good business for this government agency to furnish to the public, and especially the in-dustries of this State, valuable and reliable informa-tion that cannot be collected and disseminated profit-ably by private interests. By furnishing this in-formation, this agency is able to build up good will and prove to North Carolina that it is the primary objective of the Employment Service to render what-ever aid is possible for local industry. How is it possible that the Employment Service can secure such valuable information? There are, at this time, 78 employment and claims-taking offices in North Carolina. These offices touch every county, every town in North Carolina. The people in these offices are professionally trained to know economic-ally and realistically their areas. Into these offices yearly more than two million people go requesting job information, filing claims for Unemployment Compensation, asking for veteran information, and seeking jobs. In one month more than three hundred employers will visit these offices to talk labor prob-lems. It is from these offices that the State admin-istrative office of the Employment Service secures labor market data and it is back in these many local communities that the Employment Service personnel use the accumulated economic information. Through the cooperation of approximately four hundred employing units in North Carolina, repre-senting a quarter of a million workers, the Employ-ment Service every two months secures labor trend reports. These reports show employment data for: the current month, two months previous and antici-pated employment in two, four, and six months. Also, from these reports it is possible to gain such labor facts as turnover, the uses of female and non-white workers, as well as the transportation, housing, and salary problems. From these ES-270 reports the Agency is able to analyze scientifically and to picture graphically the status of employment by industry, by months, and by areas. News letters, commonly known as Labor Market Digests, are prepared periodically by the local offices. These letters reveal on a single page the supply, de-mand, and related problems of labor in the area. The basis of these letters are the active files of job appli-cant, of labor trend data, of job openings, and of the other significant economic factors in the community. Besides collecting and analyzing these data and issuing the reports, there are often special studies relating to the problems and requirements of the day. These studies may reflect industrial labor prob-lems (currently the construction industry) or they may picture the movement of labor between areas. This agency hopes that to a degree through its labor market information it will be possible for all persons interested in North Carolina's future to re-main awake, alert, and attuned to the daily chang-ing pattern of not only the State's but also the na-tion's labor problems. The successful continuation of our democratic system of free enterprise depends in a large manner on a well informed people. During Senate debate on the Full Employment Bill, several Senators asked on the floor in effect "What does liberty mean to a man whose wife and children are hungry?" Patrick Henry must have turned over in his grave.—Senator Joseph H. Ball. 4 FALL, 1946 THE U. C. C. QUARTERLY PAGE 85 Coal Mine In North Carolina Expected to Produce Soon By Bill Sharpe, Director, State Neivs Bureau Large-scale development of the Deep River coal field, located eight miles from Sanford, appears im-minent. Development will be by Walter A. Bledsoe Coal Company, of Terre Haute, Indiana, and its asso-ciates in this venture, John Marshall and associates, successful coal mining organization of Scranton, Pa., which operates under the name of Greenwood Mining Company. The major portion of the proven Deep River field has been acquired, either by outright purchase or lease, by the Bledsoe Company, which is the third largest coal producing organization in the United States. Work has started in the field and it is ex-pected that within a few months 500 tons of coal a day will be produced from the old Carolina Slope, which is located in the heart of the field. Entrance of the Bledsoe Company, with its experi-ence and record of accomplishment, in the Deep River field is hailed as marking a real milestone in the industrial development of North Carolina. In-dustrial engineers of the State have keenly felt, in the past, a lack of a closeby source of fuel. Coming of the Bledsoe interests climaxes more than three years of intensive effort on the part of the Depart-ment of Conservation and Development, to bring about large-scale operations, by an experienced coal mining company, in the field. During the past two years, while the Bledsoe Com-pany was formulating its plans for a North Carolina project, the State has been visited many times by W. S. Webster, vice president and general manager of Walter A. Bledsoe and Company, and several top engineers of the company. In 1943 a special survey of the coal field was made by the H. A. Brassert Company and C. C. Morfit, of New York, coal consulting engineers, employed by the Department of Conservation and Development. They filed a report showing the Deep River field had an indicated reserve tonnage of 46,000,000 tons of coal. Since that time, core drilling tests by the Unit-ed States Bureau of Mines and the Bledsoe Company, participated in by the N. C. Division of Mineral Re-sources, confirmed these estimates and indicated even greater reserves. The Deep River coal deposits have been mined intermittently and largely unsuccessfully since be-fore the American Revolution. In 1925, in the midst of perhaps what was the most successful financial venture, 53 miners were killed in a mine explosion which rocked the communities of Cumnock and near-by Gulf. Two years later, while convict labor was being used in the mine, there was a less serious disas-ter, following which the Carolina Slope and other operations in the field were abandoned. In 1942 the Coal Products Company of Sanford, then a newly organized corporation, started pumping out the old workings as the initial step toward put-ting the mine back in production. For various rea-sons this operation lagged and full production was never reached. Its interests have been taken over by the Bledsoe Company. Tests run by the United States Bureau of Mines show that Deep River coal has a B. T. U. content of 14,200, and, if the coal is coked, will yield 22 gallons of tar per ton, and 30 pounds of ammonia sulphate per ton, a "content comparing favorably with the well-known Freeport, Pa., coal." The Brassert re-port says the coal has good coking properties, is suitable for domestic and other fuel uses, and that a "relatively large number of by-products" can be recovered. The coal occurs in two seams, sandwiching a layer known locally in the Sanford area as "black band." This black band is largely composed of iron carbon-ate and phosphorous. In early operations the "black band" was mined along with the coal, and the com-posite was difficult to use, resulting in a definite local prejudice against it which was not altogether dispell-ed, locally, by successful tests in the fire boxes of locomotives on the famous, State-owned "Mullet Line" Railroad operating between Goldsboro and Morehead City. Combustion engineers, however, report that with proper separation the Deep River coal makes an ex-cellent fuel, suitable for most usages. The Brassert report confirms this and further points out that with utilization of modern mining methods and installa-tion of modern safety equipment a mine in the Deep River coal field is no more hazardous than coal mines in any other fields. The field lies in three counties—Chatham, Moore, and Lee. Present operation plans of the Bledsoe-Marshall group call for enlargement and modernization of the old Carolina Slope as presenting the quickest produc-tion possibilities. A certain amount of supervisory personnel, experienced in coal mining, is now being brought in from other coal mining areas. There should be considerable employment, however, for local labor. Large scale mining operations in the field is expected to revitalize the towns of Gulf and Cumnock, particularly the latter, and will be felt even in Sanford. Unemployment compensation is based on the phil-osophy that employment, not unemployment, is the goal to be attained.—Ohio Supreme Court in Harvey Chambers Case. One of the outstanding needs oi' the present is nation-wide realization that the time for talk and subtle maneuvering has passed and we must get down to work.—L. Ray Buckendale. PAGE 86 THE U. C. C. QUARTERLY FALL, 1946 Maritime Workers Covered; Greenhouse Workers Exempt By R. B. Billings, Senior Attorney Two topics which we propose to discuss relating to the administration of the unemployment compensa-tion program in this State may be of some interest to subject employers and covered workers at this time. These are : (1) Coverage of maritime workers under the Un-employment Compensation Law in consequence of the recent amendment to the Federal Unemployment Tax Act passed by the Congress wherein the services of officers and members of the crew of a vessel operating on navigable waters of the United States were brought within the definition of employment as set forth in the Federal Act. (2) An interpretation of "agricultural labor" with respect to services performed by individuals in greenhouse operations as set forth in a recent opin-ion rendered by the Commission during August of this year. MARITIME COVERAGE Prior to August 10, 1946, the Federal Unemploy-ment Tax Act specifically excluded from the defini-tion of employment in the Act, service performed as an officer or member of the crew of a vessel on the navigable waters of the United States. This was equally true of the Unemployment Compensation Law of North Carolina, except in the section of the North Carolina Law excluding from coverage this type of service, there was a proviso which in effect included such service in covered employment from and after the effective date of any amendment to the Federal law which would include this type of service under the coverage of the Federal act. On the date above mentioned, the Congress of the United States passed an amendment to the Federal Unemployment Tax Act, effective July 1, 1946, wherein the several states are permitted to tax ser-vices of officers or members of the crew of a vessel operating on the navigable waters of the United States, if the operations of the vessel are ordinarily and regularly supervised, managed, directed, and controlled from an operating office maintained by an employer in the particular state. This permission is subject to the conditions (1) that such service, for the purpose of wage credits to the employees, is treated in the same manner as other services, and (2) that the same limitations apply which pertain to the rights of the states to require contributions from Federal instrumentalities. The provision in the North Carolina Act referred to above, automatically brings within the definition of employment contained in the law those services which the amendment to the Federal Unemployment Tax Act brought within the definition of employment under the Federal statute. Therefore, a person who is maintaining an operating office in this State from which the operations of an American vessel on the navigable waters within or within and without the United States are regularly supervised, managed, directed, and controlled, is liable to pay contributions under the Unemployment Compensation Law with respect to wages earned by the officers or members of the crew of such vessel. The fact that this particular type of service per-formed by officers or members of the crew of a ves-sel operating on the navigable waters of the United States is brought within the provisions of the defini-tion of employment as contained in the Unemploy-ment Compensation Law of North Carolina does not in any manner change the requirements under the law with regard to the minimum number of workers and the number of weeks in which such individuals must perform services before an employer becomes liable under the Act for contributions on wages earn-ed by them. The citizenship or residence of either the employer or the individual performing the ser-vice is immaterial insofar as the service being "em-ployment" is concerned. Service must be performed either within the United States, or on or in connec-tion with an American vessel under a contract of service which is entered into within the United States or during the performance of which the vessel touches port in the United States. Service perform-ed by a member of a crew or other employee, whose contract of service is not entered into within the United States, and during the performance of which the vessel does not touch a port within the United States, does not constitute employment, notwith-standing similar services performed by others on or in connection with the vessel may constitute employ-ment. Certain services are excepted from employment under the amendment. Services performed by an employee which are performed on or in connection with a vessel, not an American vessel, are exempted if the employee is employed on or in connection with such vessel when outside the United States. The term "American vessel" is defined by the law as be-ing any vessel documented or numbered under the laws of the United States, and includes any vessel which is neither documented or numbered under the laws of the United States nor documented under the laws of any foreign country, if its crew is employed solely by one or more citizens or residents of the United States or corporations organized under the laws of the United States, or of any state. Services performed by an individual in the catch-ing, taking, harvesting, cultivating, or farming of any kinds of fish, shellfish, (for example, oysters, clams, and mussels) Crustacea, (for example, lob-sters, crabs, and shrimp) sponges, seaweeds, or other aquatic forms of animal and vegetable life are excepted. These exemptions extend to services per-formed as an officer or member of the crew of a vessel, which vessel is engaged in any such activity, whether or not the officer or member of the crew is himself so engaged. These types of service men-tioned are not excepted from coverage if such ser- FALL, 1 946 THE U. C. C. QUARTERLY PAGE 87 vices are performed in connection with a vessel of more than ten net tons, the tonnage to be determined in the manner for determining the registered ton-nage of merchant vessels under the laws of the Unit-ed States. It is further provided that all services performed on any size vessel, whether less than ten tons or not, which are performed in connection with the catching or taking of salmon or halibut for com-mercial purposes do not come within the exemptions, such services being covered under the law. This, of course, will be of no effect in North Carolina since there is no salmon or halibut fishing carried on in our waters. The increase in the number of covered workers brought within the coverage of the Act as a result of including maritime workers thereunder will be very small, the amendment affecting mostly those indi-viduals engaged in the menhaden fishing industry in this State. AGRICULTURAL LABOR Agricultural labor is exempted from unemploy-ment payroll contributions under all state unemploy-ment compensation laws as well as under the Federal Unemployment Tax Act. This particular type of service was originally exempted from coverage under the various state laws and the Federal law because of the great administrative difficulties and the costs involved in applying the law to this particular type of service. The Unemployment Compensation Law of this state merely exempts "agricultural labor" and does not define the term. The duty of applying this ex-emption falls upon the Unemployment Compensation Commission, and at times presents a difficult prob-lem. In determining what constitutes "agricultural labor" the Commission considers the facts existing in each particular case, and has generally adopted what is known as the "farm concept theory" in reach-ing its decisions, its opinions centering around what constitutes a farm in the ordinarily accepted sense, and whether the services performed are incidental to ordinary farming operations. The Commission recognizes, however, that in present day business methods many activities formerly embraced in farm-ing operations or in intimate connection therewith have become specialized and removed from the farm, and when this is accomplished such work may properly be regarded as thereby becoming industrial in nature rather than agricultural in the common conception of that term. GREENHOUSE WORKERS EXEMPT Since an amendment to the Social Security Act in 1939, a number of the state laws, as well as the Federal law, have defined what constitutes "agricul-tural labor," and have included in such definitions all services performed on a farm in the employ of any person in connection with cultivating the soil, or in connection with raising or harvesting any agricul-tural or horticultural commodity. Such definitions usually provide that the term "farm" shall include nurseries and greenhouses. Although the Unem- ( Continued on Page 94) VETERANS REFUND ALLOWANCES IN CONCURRENT PAYMENTS Refunds of $12,298 by 227 World War II veterans had been made through October 9 in servicemen's readjustment allowances to the State Unemployment Compensation Commission, representing payments made for periods in which veterans were also draw-ing subsistence or remuneration while in school or on-the-job training under the G. I. Bill of Rights. Demand has been made for refunds of approxi-mately $54,520 from 976 veterans, $20,000 from 103 self-employed and $33,920 from 873 unemployed veterans, during recent weeks, as a result of which the 227 veterans refunded $12,298. Refunds are received daily by the UCC and demands for refunds go out to veterans daily. Only a few of these veteran claims for self-employ-ment and unemployment allowances were made with intent to defraud the U. S. Government, Chairman Henry E. Kendall points out. Occasionally veterans were filing claims for unemployment or self-employ-ment while their on-the-job or institutional training papers were in process. A few of these veterans entered on-the-job training or went to a school or college and their remuneration or subsistence was delayed for a few weeks, during which they con-tinued to file unemployment claims. In the routine process, schools and colleges, as well as firms conducting on-the-job training, submit re-ports on all veterans to the Veterans Administration Regional Office in Winston-Salem. Reports of this information are sent to the UCC. The UCC, in turn, must check all of the school or on-the-job training veterans reported against the records of all veterans drawing unemployment or self-employment allow-ances. It is in this checkup that those who draw con-current payments are discovered and demand for refund of the readjustment allowance payments is made. Some of the veterans upon whom demand is made for refund enter appeals from the demands, as is their privilege. Through October 9, appeals had been filed by 116 veterans. These cases are heard by UCC appeals deputies and decisions rendered in accordance with findings of fact. "It is well to remember," said Chairman Kendall, "that veterans who draw allowances to which they are not entitled are required to refund the amounts drawn, whether there is evidence of fraud or not. We believe that fraud can be established in only a few of these cases. Our records indicate that when a veteran in school or in-the-job training gets his subsistence or remuneration, he stops filing claims for unemployment or self-employment allowances. A very small percentage continue filing and making fraudulent statements. In these, of course, the record will be turned over to the Veterans Administration for prosecution or whatever action the U. S. At-torneys may take." PAGE 88 THE U. C. C. QUARTERLY FALL, 1946 Millions Involved In Veterans' Readjustment Allowances By M. R. Dunnagan, Informational Service Representative Administering the Servicemen's Readjustment Al-lowances program, as provided in the G. I. Bill of Rights, and delegated by the U. S. Veterans Admin-istration to the Unemployment Compensation Com-mission of North Carolina, really takes its place in classification as "big business". Operation of this program actually began in Sep-tember, 1944, at a time when the nations of the earth were still engaged in death grapple, and only a few veterans of that world conflict had been released from the service—usually those with physical or other dis-abilities. Since September 14, 1944, when unemployment al-lowances actually became available, and since Novem-ber, 1944, when self-employed allowances first became available (for self-employment during the preceding month of October) approximately 125,000 World War II veterans in both classifications had been paid through September, 1946. 35,887,738 by the State UCC, for which it received reimbursement daily from the Veterans Administration. UNEMPLOYMENT ALLOWANCES Servicemen's Readjustment Allowances for unem-ployment, starting low in the last four months of 1944 and remaining moderate during most of the year 1945, but increasing monthly, reached the highest peak during the week ended June 29, 1946, when 27,- 644 veterans drew $613,120 in unemployment allow-ances. However, the weekly average payments in June reached only 23,841 whereas the August average was 24,581 payments a week. During the entire month of August 105,697 payments were made, ag-gregating $2,277,303.00. During the entire period of unemployment allow-ances, from September 14, 1944, through September, 1946, slightly more than two years, readjustment allowance payments aggregated $19,293,130.00, in payment for 975,000 weeks of unemployment. During that period the average weekly payment was approx-imately $19.75, as compared with the maximum of $20 a week. This indicates that only a few of the veterans reported earnings for any week for which a claim was filed, and only small amounts of odd-job or part-time earnings were reported. Records show that slightly more than 94,000 new claims for unemployment had been filed in the two years, indicating that only 94,000 of the approx-imately 320,000 veterans who had been discharged in North Carolina were unemployed at some time since their discharge that is, only 28.1 percent of the dis-charged veterans have filed claims for unemployment, and probably slightly less than that percentage and number actually received unemployment benefits. New claims filed by unemployed veterans, those filing the first time, reached their peak in January, 1946, following the period in which the rate of dis-charge from the armed forces was greatest, when 12,- 461 new claims were filed in one month. The rate of new claims has continued to drop gradually, but definitely, until they had declined to 6,023 in August and 3,012 for September. This is less than one-fourth of the peak week in January. Continued claims, those filed after the first claim has been filed, representing weeks of unemployment and as a result of which the veteran may reasonably expect to receive allowance checks, reached their peak for a normal week during the week ended May 4, 1946, with 29,975 continued claims. Two other weeks had higher figures for continued claims, but in both cases the weeks preceding contained holidays and veterans due to file claims on those days were allowed to file them on the same week-day during the following week. In the week ended July 13, (July 4 holiday) 31,022 continued claims were filed, and for the week ended May 18, (May 10 holiday) 30,272 con-tinued claims were filed. From the normal week peak of 29,975 for the week ended May 4, the weekly claims load dropped to 12,160 for the week ended October 26. This reflects a decrease of 59.4 percent in con- This group is engaged in pro-cessing claims for veterans in the Central U. C. C. office in Raleigh. Bend-inf, at extreme, left, is John R. Branham* Jr., Administrative j Assistant. Along the right toall, left to right, are: W. Tom Arthur, seated in front of Ben E. Woodall and J. Wilbur Pea-cock, standing, supervising claims examin-ers' in the Vet-erans program. FALL, 1 946 THE U. C C QUARTERLY PAGE 89 Checks for vet-erans are be-ing prepared by this group of workers in , the Central U. C. C. building in Raleigh. Standing, left, is E. S. Pearce, assistant audi-tor, and, right, W. H. Pitman, chief auditor of the U. C. C. tinued claims from the peak, and a decline to the ap-proximate weekly average in January, 1946. Con-tinued claims have averaged approximately 9,200 a week for the 106 weeks of the program through Sep-tember, 1946. SELF-EMPLOYED ALLOWANCES October, 1944, was the first month for which self-employment allowances were payable, but, due to the beginning of this program, several veterans did not file claims for that month until November and December. The result of this and the fact that the first Readjustment Agent for North Carolina, Cale K. Burgess, Raleigh, did not begin his duties until Jan-uary 1, 1945, first checks in this program reached the self-employed veterans claimants in that month. Preparatory work in getting vouchers ready for the self-employed veterans was done in Mr. Burgess' office in the Caswell Building, the position having been taken over by Col. A. L. Fletcher, former chair-man of the UCC on May 1, 1946, and checks were actually written in Richmond, Va. and mailed to the claimants from the U. S. Treasury Disbursing Office in Richmond, Va. As of October 1, 1946, this work was taken over and performed by the State UCC and checks have since been prepared and mailed from this office directly to the self-employed veterans, as has been the case from the beginning with the unemploy-ment claims and checks. The self-employment program is different from the unemployment program in that the claimant is self-employed, conducting his own business or office. The veteran filing a claim for self-employment is not available for placement in another job. He has a job and claims only difference between what he earns or receives as profit in his business or profession and $100 a month The Veterans Administration supple-ments his income while he is attempting to establish himself in his business, industry or profession. This program lasts for only 10.2 months, not neces-sarily consecutive, however, for any self-employed veteran, since the rules require that when a self-em-ployed veteran files a claim and receives a monthly allotment, he is charged with five weeks of the 52- weeks period in which he may draw these allowances. Also, if the self-employed veteran earns something, but not the full $100, in any given month, his allow-ance is reduced, but he is also charged with five weeks of allowance even though he may have received only $25, or $40 or $50. While self-employed veterans in many classifica-tions, professional, business, industry, or other, are eligible to claim allowances under this program, it so happens that in North Carolina from 90 to 95 percent of the claimants have been farmers. Also, because they were receiving aid while producing their crops, the number has dropped considerably during the fall months, in which their crops were being marketed and they were receiving income from their earleir labors. ALLOWANCES TO SELF-EMPLOYED Since he self-employment program started about two years ago veterans have received $16,594,608, compensating them for 168,725 months of self-em-ployment, through September, 1946, or in about two years. Since the monthly allowance averaged $98.35, out of a possible $100, it is evident that very few self-employed veterans reported any income, and those who did report income reported very little. Slightly more than 31,000 veterans had filed self-employment claims in the two years of the program, through September, 1946. When it is recalled that about 320,000 North Carolina veterans have been dis-charged from the armed forces, it is apparent that just about 9.4 percent of those discharged have filed claims for self-employment allowances. Peak of the self-employment payments was reached in May, 1946, in which month $3,782,089 was dis-tributed as full or partial allotments for 38,340 months of self-employment. In June $2,460,635 was paid in allotments for 24,958 months, while in July another upward spurt was recorded, when $2,954,138 was paid for 30,039 months. The drop since has been extensive. In August $2,549,817 was paid for 25,962 months ; in September, $1,594,155 was paid for 16,341 months; and, in October a new low was recorded, $1,132,614 for 11,940 months. PAGE 90 THE U. C C. QUARTERLY FALL, 1946 INVESTIGATED AND DISALLOWED Not every veterans is allowed to collect on every claim he files In the slightly more than two years, through September, 1946, during which allowances were available, approximately 42,000 claims have been investigated by USS claims deputies. In case of the claims of unemployed veterans, claims deputies disallowed 23,199 weeks of allow-ances, and disallowed 3,094 self-employed claims when they were filed. They also disallowed an ad-ditional 3,054 months of continued claims for self-employment filed. In about two years 1,479 cases were appealed from the decisions of the claims deputies in cases of unem-ployed veterans and 849 cases were appealed in cases of self-employed veterans, making a toal of 2,122 cases that have gone up to appeals deputies for fur-ther investigation and determination. STEPS OF VETERAN CLAIMANTS The first step taken by the veteran seeking unem-ployment allowances is to report to his nearest Em-ployment Service office, where he registers for work. He must continue to report to this office each week for any available work If no work is available im-mediately he is referred to the UCC claims taker, who interviews him and makes out his claim for an allowance. If the claims taker has any question as to the validity of the claim, he refers it to the UCC claims deputy for an investigation. If the claims deputy approves the claim, or if the claims taker is satisfied in the first place of its validity, the claim is forwarded to the State UCC office where it is pro-cessed and a check is issued to the unemployed veteran. Claims received in the State UCC offices are broken down into small batches and assigned to individual claims examiners. If the examiner finds that the claimant is qualified and his claim is in order, he approves the claim and routes it to the accounting department, where an addressograph plate is made, bearing the name, address and serial number of the veteran. A separate ledger account is set up for each claim-ant and the weeks of entitlement are computed, rang-ing from four weeks, for some disabled veterans, with less than three months service, to 52 weeks. The in-formation is sent to the check-writing division, where the check is made out by a semi-automatic process. All checks thus processed go by messenger to the State Auditor's office where the amount is imprinted on the check and the signature of the State Auditor added to that of Chairman Henry E. Kendall. Checks are returned to the UCC office and mailed to the veterans daily. The UCC is serious in its desire to pay Service-men's Readjustment Allowances to all veterans to whom such payments are due, in furthering the policy and plan for which the program was intended—as an aid in bringing about the readjustment of the vet-erans in the communities in which they decide to live and enabling them to take their places in the economic and business life of our people. On the other hand, the UCC is just as intent upon paying allowances only to those who have qualified for them and continue to meet the conditions pre-scribed by law. That is why an effort is made, every time a veteran files a claim for allowances, to find a job for him, or to help him find suitable work. If a veteran has been filing claims for several weeks, claims takers begin to question him as to what efforts, if any, he has made toward finding a job for himself. FIND A FEW FRAUD CASES In order to qualify for allotments a veteran must have been discharged under conditions other than dishonorable. He must be able to work, available for work and willing to take a suitable job. In fact, he must show every time he files a claim, by signing a statement to that effect, that he wants a job and can and will take a suitable one. Also, he is required to report any earnings from odd jobs or part-time employment in the weeks for which he applies for allowances, in cases of unemployed veterans, or in the months for which he seeks allowances, if he is a self-employed veteran. If a claims taker has reason to believe that a vet-eran seeking allowances is not available for work or is not willing to take a job which is considered suit-able for him, then payments are halted until the claims deputy makes a check and determines his rights. The same conditions apply to veterans who are believed to be employed part-time or at odd jobs and fail to report any earnings to the claims taker when he files his claim In some cases a veteran will file a claim and report no earnings when he has actually been at work, full or part-time, and should have reported earnings. In such cases payments are stopped and a hearing held. If the claims deputy, or later the appeals deputy, finds that the veteran has actually practiced fraud in making his claim, the record in the case is turned over to Col. A. L. Fletcher, State Veterans Readjust-ment Allowance Agent. If Colonel Fletcher approves the findings of the UCC appeals deputy, he submits the record to the regional attorney for the Veterans Administration. At this writing, J. Howard Killian, of Charlotte, is acting regional attorney for the North Carolina region. The regional attorney turns the case over to the U. S. District Attorney in the ap-propriate district of the three districts in North Caro-lina for prosecution in the Federal Court. Only a few such cases have actually reached the trial stage, out of 35 to 40 fraud cases that have been turned over to the Readjustment Allowance Agent by the UCC deputies. The UCC deputies have authority to stop payments and turn the the records over to the Readjustment Allowance Agent, in cases of fraud. That is as far as the UCC can go. It is then up to the Veterans Ad-ministration and the Federal Court officials. Penal-ties, in cases of fraud, include depriving the veteran of any further benefits under the G. I. Bill of Rights, the requirement that he refund any money obtained through fraud, and a fine of not more than $1000, or imprisonment for not more than one year, or both. The UCC receives and processes claims of veterans, (Continued on Page 99) FALL, 1946 THE U. C. C. QUARTERLY PAGE 91 New Industries 181, Expansions 100, In Six Months By Bill Sharpe, Director, State News Bureau North Carolina industry experienced what is be-lieved to be a record breaking growth in the first six months of 1946, according to the report of Paul Kelly, Assistant Director, and head of the Division of Commerce and Industry, N. C. Department of Conservation and Development. One hundred eighty-one new industries and an even 100 expansions within existing industries, pro-viding jobs for an estimated 28,638 new workers, requiring an approximate $62,491,500 in new capital investment, to provide an estimated $47,939,000 in new annual payrolls are listed in the summary pre-pared by Philip Schwartz, Industrial Analyst. As compared to the over-all 1945 figures, which INCREASE IN SMALL FIRMS IN NORTH CAROLINA North Carolina had a net gain of 1,460 industrial and commercial firms and 14,746 workers during the fiscal year ended June 30, 1946, roughly, the first reconversion year, as measured by the net increase of firms covered by the Unemployment Compensation Law. During that year 1,216 firms with 53,090 covered workers retired from UC law coverage, while 2,676 new firms with 67,836 covered workers were brought under coverage. S. F. Campbell, director of Re-search and Statistics, reminds that retirement may mean that firms consolidated, and that new coverage may be old or consolidated firms, or firms with fewer than eight workers which may have come under coverage, voluntarily or involuntarily, due to rela-tionship with other firms. These figures, however, bear out the known con-dition that many small firms have started business or industry in the State since the war ended and those covered by the UC law as a rule have eight or more workers. The one-year development is in contrast to activi-ties in the three principal war years, fiscal 1942-45. During those years the State had a net loss of 114 covered firms, but a net gain of 18,811 protected workers. The record shows that 2,989 firms with 101,566 workers retired from coverage and that 2,875 firms with 120,377 workers were brought under UC law coverage. By combining the figures for the four fiscal years ended June 30, last, it is found that 4,205 firms with 164,719 workers retired from coverage, while 5,551 firms with 188,213 workers were brought under coverage. This is a net gain in the four-year period of 1,346 covered firms and 23,494 workers. It seems safe to assume that the present fiscal year will show an even greater increase than the past year in the numbers of firms coming under the UC law, particularly small firms with 8 to 50 or more workers, as well as numerous firms with fewer than eight workers, which generally do not come under the UC law. were thought at the time of their release last Spring to constitute the most rapid industrial growth in any similar period in the State, the first six months of this year showed 181 new plants (in operation or in such projection as to be definitely reportable) to 225 for all of last year; $29,000,000 to $47,000,000 in approximate investment; 17,000 to 16,000 new workers; and $29,000,000 to $21,000,000 in approxi-mate new annual payrolls. In 1945, new textile industries (all types) were predominant with a total of 78 out of 225, or approxi-mately 34 per cent. This trend has continued steady and even stronger in the first six months of 1946, with a total of 96 out of 181, or approximately 53 per cent. Textile mill products, with an approximate 39 per cent, and apparel and other finished products, with an approximate 16 per cent, second and fourth respectively in the new comparison scale, seemed certain to establish, with the new textile industries figures, even more firmly by year's end North Caro-lina's position as the leading textile manufacturing state of the nation. Continuing, too, the state's record as the leader in furniture and finished lumber products, new indus-tries in those categories were 16 per cent of the total. Surprising, and heartening to state leaders, was the 8 per cent shown in food and kindred products in a state which raises much but has processed little food commodities. And the 6 per cent attributed to mis-cellaneous indicates that the recent efforts of the State Planning Board and other agencies toward the development of original new industries using North Carolina commodities is taking effect. This latter trend is shown even more clearly in the approximate investment figures which show, for miscellaneous in new and expanded industries over $14,000,000, second only to textile mill products with $39,000,000. Food and kindred products was third with $3,250,000, with other classified divisions fol-lowing in order : apparel and other finished products $940,000; chemicals and allied products $840,000; furniture and finished lumber products approxi-mately $800,000 ; electrical $750,000 ; stone, clay and glass products $400,000; lumber and timber basic products $265,000; machinery $30,000. Expansion in tobacco plants, with no new industries reported, amounted to $2,000,000. "Relief and Social Security" by Lewis Meriam was recently published by The Brookings Institution. The first half of this 900 page book gives a description of American relief and social security problems. The British and New Zealand programs are then de-scribed, and the last third of the book discusses the major issues of today's social security and relief pro-grams The study concludes that benefits should be offered to all who need them, and points out that the present program does not cover large groups whose members contribute to its support. PAGE 92 THE U. C. C. QUARTERLY FALL, 1946 Armed Services Amendment To Social Security Act From The National Legionnaire, October 1, 1946 The Armed Services Amendment to the Social Security Act, passed by the 79th Congress just prior to its recent adjournment, provides survivors' bene-fits for dependents of certain World War II veterans who have died or who will die within a limited period of time after discharge. This amendment was a partial victory for The American Legion but did not achieve all that had been sought in a Legion-sponsored bill (S-2204) which became hopelessly entangled in Congressional red tape in the 11th hour of the session. Because of the situation, it became necessary to employ parlia-mentary strategy to assure passage of "some" law granting benefits to veterans' dependents. "When it became evident our bill was stymied," stated Legislative Director John Thomas Taylor, "we immediately sponsored beneficial clauses in a comprehensive social security bill, H R 7037, which had progressed further along the Congressional route. This measure became Public Law No. 719." WHO ARE ELIGIBLE To qualify for benefits under the new law, the survivors of a deceased veteran must show that the veteran was in active military or naval service on or after September 16, 1940, and before the official end of the war. The veteran must have had at least 90 days of service, or, if his service was less than 90 days, it must have been terminated by reason of a service-connected or service-aggravated disability or injury. The law applies to veterans who die or have died within three years after discharge and who were discharged within four years and one day after the termination of the war as determined by Presidential proclamation or declaration of Congress. The veteran must have been discharged under conditions other than dishonorable. The law does NOT apply to veterans who died while in service. It does NOT apply to veterans who were dishonorably discharged. It does NOT apply to those who die more than three years after dis-charge. If survivors are receiving compensation or pen-sion—( this does not mean Government life insur-ance)— from the Veterans Administration, they are NOT eligible under the amendment. The law confers on the eligible veteran a fully insured status and guarantees his credit of a mini-mum average monthly wage of $160. An increment year is also provided for each year of 30 days or more of service. The benefits are computed from the average monthly wage, and each increment year increases the basic benefit by one per cent. If the qualified veteran leaves a widow with young children in her care, she will be eligible to receive a monthly benefit. Each child under 16 will be eligible to receive a monthly benefit two-thirds the amount of the widow's benefit. As each child reaches the age of 18, its benefit will terminate. When all chil-dren have reached the age of 18, the widow's benefit will be suspended if she is under 65 years of age. When the widow reaches 65, however, she will be eligible to file again for benefits, which will continue for the rest of her life. The widow, however, will lose all rights to benefits at any time if she re-marries. If the veteran leaves neither widow nor children under 18, his parents may be eligible for benefits if they are 65 years old or more, and were dependent upon him for support at the time of his death. After January 1, 1947, such parents may receive benefits even though the veteran is survived by a widow, or child under 18, if the widow or child can never become eligible for benefits. MUST FILE CLAIM If the veteran leaves no survivors immediately eligible for monthly benefits a lump sum may be payable to a certain specified relative or any other relative or person who paid funeral expenses. In case of veterans who died before enactment of the legislation, monthly benefits may be payable from the date of the veteran's death. Claims for such benefits must be filed at the nearest Social Security field office within six months after August 10, 1946, the date the law was enacted. Payment of benefits is not automatic. Claims must be filed for all bene-fits. Lump sum death claims must be filed within two years of death, or if the veteran died before enactment of the law, within six months of, August 10, 1946, or two years after death, whichever is later. PURPOSE OF LAW If a person dies in service, compensation is gener-ally payable to his survivors under Veterans Ad-ministration laws. But if after discharge he should have died without having a compensable service-connected disability, his survivors might have been without protection before the passage of the amend-ment. Many servicemen lost old-age and survivors' insurance status, or their potential benefits were reduced, because military service was not considered covered under the Social Security Act. The purpose of the amendment was to close this breach in sur-vivors' protection, until such time as the veteran might be expected to have been able to acquire or re-establish protection under the old age and sur-vivors' insurance program. If benefits under the old age and survivors' in-surance program already were payable and compu-tation under the veterans' amendment would increase the amount, the additional amount will be payable to survivors who filed claims within six months after August 10, 1946. Claims for increases in lump sum payments already may be filed within six months of (Continued on Page 99) FALL, 1 946 THE U. C. C. QUARTERLY PAGE 93 LESS THAN TWO PERCENT OF VETERANS EXHAUSTED ALLOWANCES Only 1.51 percent of the approximately 321,000 North Carolina veterans of World War II who had been discharged by September 1 had exhausted their Servicemen's readjustment allowances by that date, whether they were eligible for only eight weeks or the fu |
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