TABLE IV.- Aid to blind monthly average grant, January 1941 to September 1941

For the fiscal year 1940-41 the Bureau of Social Security expended $9,656,958 in State, Federal, and local funds for aid to dependent children. The funds available for the present biennium, i. e., $10,712,000 for each fiscal year, make possible an increase in expenditure of $1,055,042 for each fiscal year of the biennium when compared to the expenditures in 1940-41. These increases were made available to the Bureau primarily to eliminate the necessity of subjecting applicants to a waiting period.

The aid to dependent children grants, except in Wayne County, have not been issued on a minimum adequate standard because of the establishment of maximum grants in 1939 which are still controlling. These maximum grants were established to correspond to Federal allowances for dependent children except in onechild families and families of six or more children. The following table sets forth the maximum grants being paid in counties in the State other than Wayne: TABLE V.-Maximum aid to dependent children grants exclusive of Wayne County

1 Maximum grant of $70 subject to increase with approval of State office.

The Wayne County Board of Supervisors is contributing approximately $81,000 per month which is matched with State aid to dependent children funds to make possible additional expenditure of approximately $162,000 per month to Wayne County recipients. The adequacy of the Wayne County grants as compared with those in the other 82 counties is shown by the following table: TABLE VI.-Comparison of aid to dependent children grants for month of September

Aid to dependent children recipients are confronted with increased shelter costs in the same manner as old-age assistance and aid to the blind recipients. However, because of the aid to dependent children maximum grants in all counties, except Wayne, these increased costs are not fully reflected in the State-wide average monthly grant. (Wayne County average grant increased 34 cents per case in August and 15 cents per case in September.) The maximum grants do not meet the budgetary deficiencies of most of the cases. This is illustrated by the following comment made by the Administrative Review staff of the Social Security Board after conducting a review in Jackson, Genesse, and Saginaw Counties in the early months of 1941: "It is noted that the amount of payment in the aid to the blind and old-age assistance programs was closely related to need as established by the agency. Large deficits arose in the aid to dependent children program because the maximum payments imposed by regulation of the State agency do not allow for adequate assistance unless there is income in the home." The inadequate assistance provided aid to dependent children cases, as mentioned in the statement quoted above from the report of the Administrative Review staff, will become more inadequate if the present trend of increased living costs continues. Without additional funds being made available from State or Federal sources the inadequacy of the maximum grants will increase further the discrepancy between assistance payments and actual needs.

EXHIBIT 5.-DEFENSE HOUSING IN MICHIGAN

REPORT BY THE DIVISION OF DEFENSE HOUSING COORDINATION, EXECUTIVE OFFICE OF THE PRESIDENT, WASHINGTON, D. C.

Defense activities in the greater Detroit area are spread out as far as 35 to 40 miles from downtown Detroit. Included in its commuting fringe are all of Wayne County as well as parts of Macomb, Oakland, and Washtenaw Counties. In addition to the Detroit-Highland Park-Hamtramck sector at the hub of the area, other important defense centers are Pontiac and Ypsilanti. Further examination of the labor, transportation, and housing characteristics of these two communities in relation to Detroit may lead to the treatment of the housing situation in these centers separately from that in Detroit. The Coordinator of Defense Housing has obtained as much information as is available in regard to the following factors: 1. Amount and type of prospective additions to the labor force.

2. The supply of suitable labor already resident in the area.

3. In the case of Army and Navy establishments the War or Navy Departments have provided information on the number of enlisted personnel who will be brought into the area and who will require dwellings for their families.

4. The supply of vacant dwellings.

5. The ability of private enterprise to provide dwellings.

11,000 DWELLING UNITS RECOMMENDED

In the defense-housing program for the Detroit locality, the Coordinator of Defense Housing has recommended that 11,000 dwelling units be built to accommodate the families of defense workers. Of these, the Coordinator has recommended that 10,000 be provided by private enterprise at rentals from $30 to $60 per month. This recommendation for private construction was not considered adequate for the entire need at the time it was issued, but the rapid development of unemployment as a result of automobile production curtailment and material shortages have warranted a reexamination of the situation. Such a study is under way at the present time. The financing provisions of title VI of the National Housing Act are available in Detroit, Pontiac, and Ypsilanti and will assist private builders in their effort to meet a large part of the defense housing need in the area. The remaining 1,000 units to be constructed by the Federal Works Agency have been divided into a number of projects. It has been recommended that 200 dwelling units for colored workers in industrial defense employment be constructed at Detroit to rent for $20 to $30 a month. It has been recommended that 500 dwelling units for workers employed in defense industry be constructed at Centerline in Macomb County, north of Detroit, to rent for $20 to $35 per month. The construction of 300 units to rent for $20 to $30 per month has been recommended for workers in defense industry living at Wayne, west of Detroit. In addition to the housing program for industrial defense workers, upon the recommendation of the War Department, the Coordinator has programmed 130 dwelling units at Mount Clemens for enlisted personnel of the Army air base at Selfridge Field; construction on this project is complete and occupany is nearly complete.

The defense activities which make this program of housing in the greater Detroit area necessary consist of about $860,000,000 of prime defense contracts.

Of this amount, about $350,000,000 is for airplanes, engine parts, and equipment. Other important products of this area for national defense are tanks, trucks, ammunition, and machine guns. The largest defense plant in the greater Detroit area is the Ford bomber plant now under construction on Ecorse Road east of Ypsilanti; ultimately the plant may employ as many as 75,000 workers. At Pontiac, General Motors is manufacturing military trucks on a large scale; and in Warren Township just north of Detroit, the Chrysler Corporation is establishing a new tank plant. At Dearborn and in the Detroit-Highland Park-Hamtramck sector, established plants and new plants are being used to produce a variety of defense products.

The employment situation in Detroit has become somewhat confused by the rapid development of unemployment resulting from the automobile curtailment. This factor has caused a rapid scaling down of original estimates of a very heavy in-migration. Only a few months ago it appeared from surveys made by the Bureau of Employment Security and other governmental agencies that a shortage of 83,000 workers in the greater Detroit area would have to be met by in-migration. It now appears, however, that at least a substantial proportion of this need can be met locally from among the rapidly growing number of automobile workers to be released through priority unemployment. While no definite figure can be stated, the number of in-migrants to be needed in Detroit is but a small fraction of the apparent need a few months ago. However, the allotment of additional defense contracts might cause a rapid change in the picture during 1942.

In the Detroit housing market area, which has been defined by the Federal Housing Administration to include all the greater Detroit area except that part around Mount Clemens, Pontiac, Plymouth, and Ypsilanti, there were 606,000 dwelling units on July 1, 1941. Of these about 12,000 or roughly 2 percent were vacant. In Pontiac, according to a special study of the Work Projects Administration, the percentage of vacant dwelling units had fallen to 1.6 as early as February 1941. Ypsilanti is such a small town compared to the magnitude of the Ford bomber plant which is being erected there that vacancies are already nonexistent.

HOME REGISTRATION OFFICES

Homes registration offices are already operating in Detroit and Pontiac and one is being organized in Ypsilanti. They will serve to provide in-migrant defense workers with knowledge of available vacancies within their means.

The Bureau of Labor Statistics index of rents in Detroit rose from 67.6 in December 1933 (1935-39 equals 100.0) to 114.8 in December 1937; but fell back to 109.6 in September 1938. Since that time the index has remained relatively stable. In July 1941 the index was 112.1. Since the beginning of the defense emergency, rent levels have been relatively stable in all rent classes from the lowest to the highest studied by the Bureau of Labor Statistics. Local experts

say that new tenants are asked to pay $2.50 to $5 more than their predecessors, but that rents are not being raised on present tenants. A special study of rents in Pontiac by the Bureau of Labor Statistics indicates that between October 1939 and April 1941 an increase of 7.0 percent in the total rent bill was effected. This resulted from an average increase of 16.1 percent in the rentals paid on 50 percent of the rented dwellings; rents remained unchanged or decreased for the other half of the rented dwellings. The increase was most severe, both in amount and in extent, for the lowest-rent brackets.

The Federal Housing Administration estimates that approximately 23,000 dwelling units were provided in the Detroit housing market area between April 1, 1940, and April 1, 1941. It has been estimated that on the basis of the present rate of construction in the area as many as 30,000 or 35,000 dwelling units would be constructed between April 1, 1941, and April 1, 1942. However, it is quite likely that the current shortage of building materials and the need for defense housing priorities will substantially reduce this estimated volume of construction. In the area discussed above, as elsewhere throughout the country, the defensehousing program is necessarily flexible and subject to change in accordance with changes in the nature and direction of the defense program as a whole. Further expansion of defense industry beyond that now anticipated, or more rapid exhaustion of resident labor supplies than is believed likely, would necessitate revision of the housing program. This is particularly true in cities such as Detroit where the complexity of the industrial organization and of the residential areas makes the labor and housing analysis very difficult. Continuing reinvestigation of these areas and especially of Detroit is therefore regularly carried on, so that changes in the local housing requirements may be met by corresponding changes in the programs for defense housing.

EXHIBIT 6.PROBLEM OF SCHOOL HOUSING IN MICHIGAN

REPORT BY EUGENE B. ELLIOTT, SUPERINTENDENT, STATE OF MICHIGAN DEPARTMENT OF PUBLIC INSTRUCTION, LANSING, MICH.

SEPTEMBER 12, 1941.

The problem of school housing in Michigan goes back to the adoption of the 15-mill tax limitation by constitutional provision effective December 8, 1932. Since that time State, county, township, and school district taxes may not exceed 15 mills. A subsequent Supreme Court decision relative to the effective date of the constitutional provision excluded city governments unless they, by a vote of the people, chose to come within the provisions of the 15-mill limitation. To date 11 cities have voted favorably to include themselves within the 15-mill limitation. To escape from the provisions of this limitation requires two-thirds vote of the people and then may be for a 5-year period only. At the time of the adoption of this amendment the State-wide indebtedness was approximately $175,000,000. Most of it was for public enterprises in the crowded areas. today many of these areas are further limited in their taxing ability by debt limits. Because of the difficulty of further increasing their indebtedness the schoolhousing problem has become increasingly difficult. The problem has been accentuated by the fact that we have many small districts which are unable to provide satisfactory housing even though they secure a two-thirds majority vote to do so. There are more than 6,000 school districts in the State. The highly decentralized system has resulted in many small and inefficient high schools.

Even

The problems of the Upper Peninsula are not quite as acute since school districts have very generally reorganized into larger units although the tax limitations limit their ability to provide satisfactory programs without assistance from the State.

To meet the problem of current operation the State has been providing increased funds each year since the adoption of the limitation until at the present time nearly $45,000,000 is provided. This represents approximately 50 percent of the total school-operating costs.

School districts already threatened with acute housing problems have been greatly worried over the placement of many defense projects. The critical areas include the territory about Battle Creek, Muskegon, the Chrysler Tank Plant in Macomb County, Saginaw, Flint, Detroit, and Ypsilanti. A rapid survey indicates school enrollments in the immediate areas of these defense projects to be increased approximately 10 percent, although State-wide data indicates a general leveling off at about 1,400,000 children between the ages of 5-19, inclusive. Under our State-aid policy the State will grant increased aid to growing districts. However, the funds will not be available until the following

year.

The real need is for housing facilities. We have felt that as far as possible and consistent with good policy, funds should be provided so as to encourage sound reorganization of small districts. This reorganization should come in such a way that as far as possible the districts will become self-supporting. It was our opinion that if a Federal board was so organized, that our office could work with it in a consulting capacity which would materially improve he possibility of securing sound reorganization.

We have greatly appreciated the splendid cooperation which we have already had from Federal officials.

EXHIBIT 7.-TRAINING-WITHIN-INDUSTRY IN MICHIGAN

REPORT BY MILTON M. OLANDER, DISTRICT REPRESENTATIVE; O. F. CARPENTER, ASSOCIATE DISTRICT REPRESENTATIVE; CARL D. WHEATON, ASSISTANT DISTRICT REPRESENTATIVE, DISTRICT NO. 13, MICHIGAN AND LUCAS COUNTY, OHIO; TRAINING-WITHIN-INDUSTRY BRANCH, LABOR DIVISION, OFFICE OF PRODUCTION

MANAGEMENT

District No. 13, Training-Within-Industry, Labor Division, Office of Production Management, comprising the State of Michigan and Lucas County in Ohio, is one of the 22 areas into which the United States has been divided.

The functions of these districts is to administer training-within-industry information, set up training programs, advise on general training practices already set up, and promote the training idea in our national-defense plants. Detroit is a particularly vital spot because of its concentrated automotive industries which are being converted to the manufacture of defense materials. Another phase of this problem is that this area has not been especially active in the manufacture of aircraft, and since the defense program has been in effect large numbers of

planes of various types are to be built here. This necessitates two factors: First, men must be trained for this new work; second, men must be brought to this area to fill these jobs.

Before going into the various phases of this paper, it might be well to view the set-up of District No. 13, Training-Within-Industry, Labor Division, Office of Production Management, from an organizational point of view. In order to facilitate the reading of this, perhaps, a chart will suffice.

OFFICE OF PRODUCTION MANAGEMENT

LABOR DIVISION

TRAINING-WITHIN-INDUSTRY BRANCH

C. R. Dooley, Director; Walter Dietz, Associate Director. Headquarters at Washington, headquarters staff.

DISTRICT NO. 13, STAFF, MICHIGAN AND LUCAS COUNTY, OHIO

M. M. Olander, district representative.

O. F. Carpenter, associate district representative.

Carl D. Wheaton, assistant district representative.
Doris M. Cochran, stenographer-clerk.

Eva L. Jackson, stenographer-clerk.

DISTRICT NO. 13, ADVISERS, MICHIGAN AND LUCAS COUNTY, OHIO Willis H. Hall, manager, industrial division, Detroit Board of Commerce. John Reid, secretary, Michigan State Federation of Labor.

Walter Reuther, regional director, United Automobile Workers of America. Frank Rising, general manager, Automotive Parts & Equipment Manufacturers.

DISTRICT NO. 13, DETROIT CONSULTANTS, MICHIGAN AND LUCAS COUNTY, OHIO Earl Bedell, Director of Vocational Education, Board of Education. Chester A. Cahn, secretary, Automotive Tool & Die Manufacturers.

Edward L. Cushman, Chief of Occupational Adjustment Service, Michigan Unemployment Compensation Commission.

Cy Newcomb, manager, Central Placement Office, Michigan State Employment Service.

W. E. Stirton, director, Vocational Education Program for National Defense. John Wagner, district director, National Youth Administration.

DISTRICT NO. 13, DETROIT PANEL MEMBERS, MICHIGAN AND LUCAS COUNTY, OHIO John M. Amiss, director of industrial education, Chrysler Corporation.

Carl S. Carlson, international representative, International Association of Machinists.

M. A. Clark, manager, industrial and public relations, United States Rubber Co. Foster L. Fralick, vice president and general manager, Koestlin Tool & Die Corporation.

James K. Fulks, factory manager, Ex-Cell-O Corporation.

Albert Goodwin, educational director, Murray Corporation of America.
Inez Hooper, secretary, operations committee, Chrysler Corporation.

Violet Merrill, employment secretary, Young Women's Christian Association.

George W. Miller, defense coordinator, United Automobile Workers of America. H. W. Roberts, educational director, Fisher Body Division, General Motors Corporation.

H. J. Roesch, director of industrial relations, Briggs Manufacturing Co.
Thomas P. Ross, Federal Committee on Apprenticeship.

F. E. Searle, superintendent, Henry Ford Trade School.

Mattiegrace Sharpe, assistant employment manager, the Detroit Edison Co.
Albert Sobey, director, General Motors Institute.

Wayne Stettbacher, director of apprentice training, Employers Association of
Detroit.

Blair K. Swartz, supervisor of personnel research, the Detroit Edison Co.
Ruth Trowbridge, supervisor of supervisors, Ternstedt Manufacturing Co.

Robert G. Waldron, personnel director, Hudson Motor Car Co.
Clarence E. Weiss, industrial relations manager, Packard Motor Car Co.

DISTRICT NO. II, TOLEDO PANEL MEMBERS, MICHIGAN AND LUCAS COUNTY, OHIO

C. T. Black, Libbey Glass Co.

E. J. Bodette, Ohio State Employment Service.

F. M. Dannenfelser, Vocational High School.