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states in which it exists; some have a special department with a chief inspector and deputy inspectors directly under his orders; the State of Massachusetts places factory inspection in a bureau under the chief of police; others have combined the inspection service with that of the bureau of labor statistics. This last combination does not seem to have fortunate results, for the two funcare apt to be inconsistent, the director of statisties needing the good will of manufacturers to obtain his information, while the inspector of factories is often obliged to harass these same manufacturers in order to enforce the law. On the other hand, the states which have obtained the best results by their legislation are those which have kept the two services separate."

Our experience confirms these conclusions. The efficiency of all our bureaus is impaired by their consolidation into one department. In addition, the bureau of factory inspection is disorganized by its inconsistent duty of enforcing non-factory laws; and the legal organization of the bureau of mediation and arbitration is impossible.

Therefore the primary need of the department is a systematic re-organization.

Following in an appendix is a complete statement of the personnel and finances of the department.

Respectfully submitted,

(Signed)

P. TECUMSEH SHERMAN,

Commissioner of Labor.

APPENDIXES.

I. Financial exhibit and roster of employees.

II. Preliminary Report of Bureau of Factory Inspection.

III. Preliminary Report of the Bureau of Mediation and Arbitration.

IV. Report of Free Employment Bureau.

V. Opinions of the Attorney-General and Court of Special Sessions. VI. Index of Labor Legislation in 1905.

VII. Labor Laws in Force January 1, 1906.

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Total

$3,363 55 $133,132 18 $5,737 63 $2,307 82 $144,541 18

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The original appropriation for the free employment bureau was $5,000, but upon the abolition of the Bureau, May 1, 1906, the balance ($2,307.82) was transferred to other funds by chapter 158.

The entire appropriation was $4,000, for a period of fifteen months beginning July 1, 1906. The appropriation is here divided on the basis of one-fifth for the current fiscal year and four-fifths for the fiscal year beginning October 1, 1906. Exclusive of $420 appropriated for salary due expert examiner of machinery in 1905.

Including $500 for postage and $205.57 for other office expenses.

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Included in the expenses of the Commissioner are $500 for postage and $205.57 for other office expenses.

§ Receipts for license frames, paid over to State Treasurer, amounted to $3,015.00. ¶ Exclusive of $3,200 made available by the Supply Bill of 1906.

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