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Walker-Johnson Building 1734 New York Avenue, NW. Washington
Mr. Harry L. Hopkins Dear Mr. Hopkins: This report, the third, covers two of the worst trouble centers in Brooklyn, the Unemployed Councils, two of the largest unions, the garment industry, and a portion of the works relief division. Good administration of relief, with tactful handling of complaints, is taking the heart out of the local Unemployed Councils. The councils are vocal, but their actual strength is small and greatly over-estimated. In Brooklyn's largest precinct, with a cumbersome case load of 15,000, the guts have been knocked out of the councils by good handling of clients and complaints in reception. In another precinct in Brooklyn, the councils are causing trouble and getting by with it simply because the administrator and her staff lets them get under their skins. The precinct with a 15,000 case load includes the Red Hook, Puerto Rican, Negro and Italian sections. Formerly it was constantly in an uproar with riots and everything else. The councils found it easy to stir up trouble at any time. The situation has changed completely within six months. The reception room handles a thousand persons a day and is as quiet as a library. The reception supervisor is accessible to anyone with a complaint. The police have all but withdrawn, and the Unemployed Council delegations are received in a quiet and orderly manner. This precinct is an enlightened example of an administration using its head in handling agitation, with the result that the councils have actually lost strength and power in this section. The rank and file of clients are 100% with the investigators and staff. And this is the sort of low-class section where one would expect a lot of trouble. The other precinct comprises such middle class areas as Bensonhurst, strictly residential. The other day there was picketing in front of the bureau, which is located in a public school. Although only a handful of men were involved, this is the sort of stuff that makes newspaper headlines. One of the leaders participated in the hunger march to Albany last month. the council has made some little gain in this section, but this could be eliminated within two weeks by tactful handling by administration. After talking with clients and visiting homes, it seems clear that good administration can eliminate almost all trouble from residential sections of New York City. I watched closely the demonstration Saturday (24th) in Union Square, part of the nation-wide protest against inadequate relief and lack of jobs. It was a fizzle. The were not more than 3,000 persons in the parade and meeting. The whole thing was supposed to have been started and engineered by Socialists, but the majority in line were Communists and Unemployed Councils (uninvited). Having witnessed and covered numerous other demonstrations, this one was a weak sister. The Unemployed Council of Harlem, one of the largest and most vocal in the city, had scarcely twenty person in line. Furthermore, the demonstration was supposed to be part of a nation-wide unemployment protest, and was such it was a distinct failure. My own feeling is that a vastly improved administration of home relief has kept the marginal people out of organization protests. The raw material available in New York has not been touched by agitation of the old order and much sympathy expressed two years ago has disappeared and been won over by relief workers. In the congested section of Brooklyn I heard a great deal about the young men, 18 to 25. There has been an influx of these singles on relief and the situation is considered serious. In large measure they are immune to Unemployed Councils, but they have nothing to do and are getting inadequate budgets. Young people in families are resentful of responsibility for their families. They see no reason why they should work and turn over almost all of their earnings to the family. Those who are single and living alone are having a difficult time. Much despondency and despair has been noted in the furnished room district. As to the receptiveness of the young people to Fascism, Communism, or Socialism, there is a wide difference of opinion. From my own talks with young people, I should say there is little likelihood of their following a leader as yet. Jobs, of course, is the one solution. Otherwise these young men who have never worked and who have no resources to continue in school, are going to be a big problem. Because they will accept home relief and pick up odd jobs on the side for spending money. Most of them are just "hanging around", although no difficulty has been found in getting them to work when jobs are offered. For the rank and file of relief clients, pleading has changed to demanding. The clients certainly expect checks on time and are certainly more and more dependent on the government. There is a growing dependency on the home relief investigator. Often their main source of new and information is through him. But the rank and file of clients are not more discontented or restless than before. Relief rolls in Brooklyn are still going up. There are no signs of jobs and clients invariably answer that "business is worse." This is a reflection of neighborhood merchants and of places where they apply for jobs. In Bensonhurst I took a dozen new applicants for relief aside for interviews and found that most of them had been working until a few months ago. Two were young chaps, 20 and 22, who wanted jobs. Both blamed the NRA for their unemployment. One had been a Postal Telegraph messenger boy who was let out because NRA codes forbid delivering of certain kinds of samples via Postal. The other was a Bohack grocer chain clerk who blamed NRA. One blamed Hoover for the depression, the other blamed machines. Both hated home relief, both were sure that business would recover and that Roosevelt was doing his best. Most of their friends were in CCC or doing work relief. Another applicant had a shoe store which was forced under. He is confident, as they all are, that he will get a job soon. Just wants home relief to tide him over for a few months and he "will work at anything." Not resentful and didn't blame the banks for tightening up on his credit. But his bad luck broke up his home and he is down to last pennies. A widow with a 19-year-old daughter, lost her job because automatic machines had been installed in her uniform polishing plant where she had worked many years. Thinks Roosevelt is fine, but that business is worse and thinks the government must fix things. "You're willing to work and trying to make a living, and what's the result?", she sighed. The next applicants were a young couple, married six months. He lost his gob in a poultry concern two months ago. Furniture company threatens to take furniture, lights turned off, and things look black to them just as they are starting out in married life. A house-to-house peddler, over 50, had his home foreclosed by bank and expects dispossess daily. Can't make any more money peddling because too many people on relief and no buying power. A boy who had worked in a match factory and went to CCC is applying for self and mother. Business bad and his two sisters and husbands also on relief. A stone cutter out of work two years finally comes on relief. A single woman over fifty who used to work in a hospital is down to last cent and is obviously ashamed to have to apply. A plasterer and contractor bitter against union rackets and kick-backs says he can't make a go of things any longer unless the government begins building, and eliminates racketeering. All of which indicates the type of person just coming on relief. Most of them were working until recently. Out of a case load of 15,000 in one precinct, 600 cases were closed in October but only 245 due to jobs. Despite these figures, several administrators thought business was better and coming back gradually, although one administrator said "I don't see how private jobs are coming back. I don't feel that they will." There is a great deal of rent trouble in residential areas of Brooklyn and consequently widespread deception on part of clients. Impossible for rent budgets to cover rent needs there, although okay for tenement sections. Health situation is not serious, although I heard much about psychopathic trouble for the future. Clothing is very bad for a fourth of the clients. Household equipment getting bad, but not acute except in the lowest classes which never had anything anyway. Refusals of jobs in residential section of Brooklyn runs to 30%, with alibis of health. This is among Italians who prefer to remain on home relief. A Queens borough case supervisor said, "Relief can't go on as it is. You can't keep a normal employable family on relief indefinitely. By keeping them on relief you are telling them they have no future. It is a paralyzing development to the family and the father loses his position of respect. Psychologically, unemployment insurance is good, for it recognizes the employability of the family and places it on a dignified standard as long as insurance meets the actual needs of the family. Home relief ought to care only for the unemployables and the government should classify all the others on work relief." This supervisor thinks it would be relatively easy to put all employables at work, beautifying cities, etc. Doesn't believe relief has hit the bottom yet but expects no trouble from clients. Both the Amalgamated Clothing Workers of America and the International Ladies Garment Workers reported less suffering among their own workers than in other industries, probably due to pro-rating of work in all shops. Both reported, however that the present season which started out fine has flopped badly and has been a disappointment. Business, while not dismally bad, has not picked up. Shops should be running top speed this month but many are not working at all. Both had high praise for the government relief administration, both thought public works with a wage level above subsistence was the solution. At the International, Fred Umhey, exec. sec., said: "Business will recover ultimately, but frankly, I've had that hope since 1929 and it's hard to maintain optimism after five years.... I don't care how far the government goes in public works. Relief will go on forever if only a subsistence budget is given. Only the food distribution industry gets any benefit from that." At the Amalgamated, Jacob Potofsky, ass't pres., said: "Relief is the crux of the economic problem facing the country. I'm afraid technological unemployment and over-expansion and efficiency has reached a point where industry couldn't possibly absorb all the unemployment unless something tangible is done." He favors NRA, thinks govt. has done many good things, thinks more government regulation is essential, and that business is improving. Both union men thought the idea of government factories was good only if the government used the people in the industry and maintained prevailing wages. The Amalgamated thought the government could get together with the union and employers and produce quantities of clothing, absorb unemployed, and keep wage scales as they are. Samuel Klein, executive secretary of the Industrial Council of Cloak, Suit and Skirt manufacturers, and spokesman for a large portion of the industry, says he is in full accord with the government program and prefers work relief. Thinks the taxpayers have a right to get a return on their money through projects of lasting worth. "Our industry is not optimistic. Except for a short period after NRA code signed, business has not increased. We are doing no more business than we did a few seasons before NRA. We are fearful of a demand for still cheaper merchandise in the spring, and some of the old-standing firms may go under soon unless business picks up." Cites tremendous competition from (1) manufacturers who have moved outside code areas and (2) from other industries like dress, rainwear, blouse and skirt, etc. Klein is definitely and certainly opposed to government factories, but says the industry would be glad to cooperate with the government to produce quantities of popular priced clothing at cost plus overhead. Says if there is to be unemployment insurance it must be done for all industries; his own group tried it in 1926 with disastrous results. As for government factories, the announcement from Washington was read by everyone. several clients seemed to be waiting until the government took charge, and everyone favored it. Every announcement about relief from Washington is read avidly, and I heard again considerable complaint from relief workers about "glowing announcements" with no results except an influx of inquiries from clients. No opposition would be met from clients if the government did take charge of factories and start producing, but the opposition of manufacturers of course would be something terrific unless they got their cut. Unemployed Councils: they claim 52 locals with a few additional small groups. A membership check-up is being made now. Richard Sullivan, New York secretary and organizer, a young chap in late twenties or early thirties, said "There will be change in relief soon. We want one and they (the govt.) want one because they are afraid of what we want." Says there can be no purchasing power on relief money, and thusly there can be no revival in industry. "The way it looks to us is that they are trying to institute forced labor into all relief work." The headquarters for the city are at 11 West 18th Street. Did not denote any unusual activity and the line of chatter is the same. The councils had a bout 800-1,000 in the demonstration Saturday, and expects to send 100 delegates to Washington on January 5. In the works division of New York City relief, there are two sources of vociferous complaints. On the one hand you have Col. Willgus, a Vermonter army efficiency expert who says he is in "a devil of a fix" and complains bitterly because he isn't permitted to do an efficient job. On the other hand a tremendous amount of what might be called "idealism" has permeated the service division which includes music, drama, education, etc. Here the department heads are almost hysterical because they are subject to the whims of home relief rules and can't do an idealistic job of "public service" and usher in the new social order. As for Col. Willgus, he said "We have got to consider some permanent plan or else end in disaster. We are trying to eat our cake and have it too. We can't have an efficient organization unless we can keep our best men. The PWA comes along and pays double our salaries and some have gone to the outside with double or triple our salaries. I can't stay here and see the thing decay and go to dust. When I came here I received many felicitations from business associates. I was filled with high hopes, and now I'm told it isn't expected that this is to be an efficient machine. He wants to get away from the rules and do a good job of work relief. As for the service division of work relief, the whole business is horribly confused. The "idealists" can't even talk coherently and say there must be a change within a month or two or the whole project will go to pieces. This includes such items as music. They want permanent planning of "a new type of economy" and placing work relief on a professional non-stigma basis. Since I haven't completed a survey of the works division I shall wait until I'm through before summarizing. Definite pick-ups in business with capacity plants were found in (1) a candy box factory employing 70 persons; (2) a carpet and floor covering business, best business in its history and (3) ladies neckwear business with owner making plenty of cash.
Very sincerely yours,
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