11104 CONGRESSIONAL RECORD-HOUSE AUGUST 9 The good offices of the Secretary General are An armlstfoe has been achieved in Pales­ ing the Governments of the countries con ~ always available to facilitate such consul­ tine, and the terms of a peaceful settlement cerned, their peoples, and the world as' a tations. are being negotiated. Nine hundred thou­ whole, would certainly benefit if all the UNITED NATIONS FIELD. SERVICE sand Arabs are receiving assistance from the applicants were to be admitted to the organi­ With a view to strengthening the work of United Nations; many of them must be re­ zation at the next session of the General mediation and conciliation. I suggested to settled or repatriated. The new State of Assembly. the last session of the General Assembly the Israel has yet to establish its economic via­ I commend to the member governments, establishment of a United Nations guard. bility. Both Israel and the Arab States need and to the peoples of the world, the study of This guard would have no military duties a substantial, coordinated effort in economic the full record of the United Nations during but would assist United Nations missions on development to raise their living standards. the 12 months ending June 30, 1949, as set their peaceful errands to the world's troubled I believe . that this area should be given forth in the chapters that follow. It ls a rec­ areas. In the light of suggestions made by high priority in the proposed United Na­ ord of achievement in the prevention of war member governments I have modified that tions program of technical assistance for un­ and in the steady construction of the foun­ proposal. I have now suggested to the spe­ derdeveloped countries. This would make dations of a more peaceful and prosperous cial committee established by the· General it possible for comprehensive plans to be world. Assembly to examine this matter of the es­ worked out for regional economic develop­ TRYGVE LIE, JULY 1949. Secretary General. tablishment of a uniformed United Nations ment on a large scale in the whole area; field service of 300 men, who would be these plans might include river valley de­ RECESS - seconded or otherwise made available, on a velopments, such as the Tennessee Valley basis of geographical distribution, from the Authority in the United States, in respect Mr. LUCAS. I move that the Senate services of member governments for a period of the valleys of the Tigris, the Euphrates stand ·in recess until 12 o'clock noon to­ of from 1 to 3 years for protective and tech­ and the Jordan, and of the further develop­ morrow. nical duties both at headquarters and in ment of the valley of the Nile. The first The motion was agreed to; and Oklahoma, Mr. RUSSELL, Mr. McCAR­ · the Philippines. [Applause, the Mem­ viding our people a fuller life of sub­ RAN, Mr. BRIDGES, Mr. GURNEY, Mr. REED, bers rising.] stance and contentment, in our deter­ and Mr. FERGUSON to be the conferees on President QUIRINO. Mr. Speaker, mined endeavor to improve our livihg the part of the Senate. distinguished Members of the House of standards and in that manner contain The message also announced that the Representatives, it is a rare honor and and counteract the onrush of a totali­ Senate agrees with an amendment to the privilege for any man to appear before tarian system battering down the doors amendments of the House to a bill of the this august body of the distinguished of our neighbors. Senate of the following title: representatives of the American people. We thank America for the opportuni­ S.1647. An act to eliminate premium pay­ Thirty years ago I occupied a seat in the ties given us to develop ourselves and our ments in the purchase of Government royalty House of Representatives of my country. country, and for the assistance and guid­ oil under existing contracts entered into pur­ This fact makes me feel at home in your ance we know the United States is dis­ suant to the act of July 13, 1946 (60 Stat. midst. As the head of a new state that posed to lend to us in our future under­ 533). owes its existence to American wisdom takings. The new Republic of the Phil­ The message also announced that the and idealism, I am filled with a mingled ippines was born in self-reliance and we Senate agrees to the report of the com­ sense of gratitude and humility because are determined to build it on solid rock. mittee of conference on the disagreeing of the special circumstances that have [Applause.] We cannot do otherwise if votes of the two Houses on the amend­ brought me to this mighty rostrum. we are to deserve the distinction of be­ ment of the Senate to the bill CH. R. The Independence Act you passed in ing America's original handiwork in the 3751) entitled "An act to transfer a tower 1934 as our charter of liberty has well sphere of freedom in Asia. located on the Lower Souris National directed our course as a nation. During I have come to your country in fur­ Wildlife Refuge to the International the transition period between 1934 and therance of mutual understanding be­ Peace Garden, Inc., North Dakota. the actual grant of independence on July tween your country and mine; for the 4, 1946, events of the most far-reaching preservation not only of freedom and COMMITTEE TO ESCORT THE PRESIDENT significance ·to the world transpired. prosperity but also of the peace of the OF THE PHILIPPINES That period provided the greatest test world in our part of the globe. I am posi­ The SPEAKER. The Chair will ever served on our :people and it revealed tive of your concern in this regard. I am appoint as a committee to escort the to us the quality of the freedom that we emboldened by the fact that President President of the Philippines to the had been fighting for, and, to America · Truman .has graciously invited me to Chamber the gentleman from Massachu- and the world at large, the character of have an opportunity of presenting. our . setts [Mr. McCORMACK], the gentleman the nation that has become its recipient side of the understanding . from Massachusetts [Mr. MARTIN], the and beneficiary. [Applause.] I hope that this mightiest of legisla­ gentleman from West Virginia [Mr. KEE], The whole world was plunged into the tures in the world will give timely and and the gentleman from Illinois [Mr. most destructive war known in history. effective cooperation in our efforts to CHIPERFIELD] . ·The Filipinos bled with the rest of bu- achieve the rich promise· of that under­ The House will stand in recess subject "·· manity in· that· titanic struggle. Thank standing, and enable us to contribute in to the call of the Chair. God, we have survived. Instead of suc­ our modest way to the fulfillment of the (Thereupon, at 12 o'clock and 5 cumbing to desperation, following the high mission of the United States in the minutes p. m., the House stood in recess untold devastation of our country and advancement and preservation of world -·subject to the call of tP.e ·Chair.) the decimation of our population, we peace and security to all liberty-loving have come out stronger' fortified in the peoples. This has become an important PRESIDENT ELPIDIO QUIRINO, OF THE blessings of democracy and freedom. phase of our Philippine foreign policy. PHILIPPINES [Applause.] We have risen from our It was inspired no less by a deep sense of During the recess the following pro­ prostration disposed ·to anticipate and obligation· that· we owe to this great ceedings occurred: face the dangers of another possible country that has given us the freedom At 12 o'clock and 20 minutes p. m., the world conflict. And we are determined which I know America wiil do her best Doorkeeper announced President Elpidio to carry on and to fight to the last man to help protect and develop. · · Quirino, oi the· Philippines. on the side of America if freedom, our My country is determined to succeed. President Quirino, escorted by the freedom and your. freedom, should ever My people are confident that you will committee of Representatives, entered again be menaced and the democratic continue to extend them every possible the Hall of the House of Representatives way of life imperiled. [Applause.] support to succeed. Your people and and stood at the right of the Speaker. Immediately after the liberation of mine, my a ftuke of destiny, have become [Applause, the Members rising.] our country in 1945, we thought that the partners in a most glorious adventure The SPEAKER. Members of the Philippines could not be rebuilt in less which it will be to your interest, as· well House of Representatives, it is today my than 10 years, that it would take much as to that of the entire world, to prose­ pleasurable duty to present a distinguish­ longer for us to be able to stand on our cute toward increasing fulfillment. [Ap­ ed neighbor and friend. The friendship own feet. But I can say with pardon­ plause, the Members rising. l between the Republic of the United able pride that the strides we have made At 12 o'clock and 33 minutes p. m., States of America and the Republic of during the last 3 years has more than President Quirino retired from the Hall the Philippines dates a long way back, eloquently vindicated our capacity to of the House of Representatives. long before the Philippines became a bear our burdens and obligations as a republic. free and independent people. [Ap­ AFTER RECESS Mr. President, today we are proud that plause.] The recess having expired, at 12 o'clock the United States of America kept its While many countries in the world are and 55 mintttes p. m., the House was contract with the people of the Philip­ still at a loss to reconstruct or rehabili­ called to order by the Speaker. pine Islands. [Applause.] We proved to tate themselves, bewildered in the face of Mr. McCORMACK. Mr. Speaker, I the world that we covet not a foot of uncertainties produced by their troubled ask unanimous consent that the proceed­ ground the world around over which any surroundings, the Philippines today ings had during the recess of the House other flag flies today or has a right to fly. stands in the midst of a most dis­ be printed in the RECORD. We look upon your country as a great tressed region as one stable unit, a veri­ The SPEAKER. Without objection, it neighbor near the east. We welcome you table haven of many people in the Far is so ordered. · here. We wish for your people in the East whose liberties l\ave been threat­ There was no objection. years to come that they may enjoy to ened. the fullest measure the rich blessings of We have been concentrating our at­ EXTENSIO~ OF REMARKS heaith, of prosperity, and one day an . tention on our internal development. Mr. McCORMACK asked and was enduring peace, and that goes for all the We have not lost a single moment and given .i,Jermission to extend his remarks world. opportunity to er.. hance the stabilization in the RECORD and include two editorials.

• 11106 CONGRESSIONAL RECORD-HOUSE AUGUST 9 MESSAGE FROM THE PRESIDENT Fla., near Eglin Air Force Base, as a recrea­ purpose of this legislation was set forth tional facility; and in the statement of policy contained in A message in writing from the Presi­ H. R . 5238. An act to authorize the adjust­ dent of the United States was communi­ ment of the lineal positions of certain offi­ the act of 1938, as fallows: "to correct cated to the House by Mr. Miller, one of cers of the naval service, and for other pur­ and as rapidly as practicable to elimi­ his secretaries, who also informed the poses. nate, without substantially curtailing House that on the following dates the On August 8, 1949: employment or earning power, the exist­ President approved and signed bills and H. R. 1466. An act for the relief of Daniel ence in industries engaged in commerce joint resolutions of the House of the f al­ Kim; or in the production of goods for com­ H. R. 2084. An act for the relief of Teiko merce, of labor conditions found by Con­ lowing titles: Horikawa and Yoshiko Horikawa; On August 1, 1949: H. R. 2850. An act for the relief of Denise gress to be detrimental to the mainte­ H.J. Res. 329. Joint resolution amending Simeon Boutant; and nance of the minimum standards of liv­ an act m aking temporary appropriations for H.J. Res. 327. Joint resolution making an ing necessary for the health, efficiency, the fiscal year 1950, and for other purposes. additional appropriation for control of emer­ and general well-being of workers." On August 2, 1949: gency outbreaks of insects and plant dis­ To accomplish this purpose Congress, H. R. 1360. An act to extend the times for eases. in the act of 1938, establishing rates of commencin g and completing the construc­ tion of a free bridge across the Rio Grande AMENDING FAIR LABOR STANDARDS ACT pay, maximum hours of employment, at or near Del Rio, Tex.; Mr. LESINSKI. Mr. Speaker, I move overtime and restrictions on child labor. H. R. 3512. An act to amend the Civil Serv­ that the House resolve itself into the The legislation now before us seeks to ac­ ice Retirement Act of May 29, 1930; Committee of the Whole House on the complish the sanie purposes as the origi­ H. R. 4022. An act to extend the time for nal act with such amendments as present commencing the construction of a toll bridge State of the Union for the further con­ conditions and the experience gained in across the Rio Grande at or near Rio Grande sideration of the bill (H. R. 5856) to pro­ the years since 1938 would justify. City, Tex., to July 31, 1950; and vide for the amendment of the Fair La­ In considering the proposed legislation · H. R. 4705. An act to transfer the office of bor Standards Act of 1938, and for other now before the Congress much has been the probation officer of the United States purposes. District Court for the District of Columbia, said, and, will be said concerning the The motion was agreed to. minimum wage provisions of the bill. the Office of the Register of Wills for the Accordingly the House resolved itself District of Columbia, and the Commission This is perfectly proper and entire·­ on Mental Health, for the government of the into the Committee of the Whole House ly in order, but, we must not overlook District of Columbia to the Administrative on the State of the Union for the further the fact that the bill also defines the Office of the United States Courts, for budget­ consideration of the bill H. R. 5856, with number of work hours per week and basis ary and administrative purposes. Mr. COOLEY in the chair. of pay for overtime, and, the prohibition On August 3, 1949: The Clerk read the title of the bill. of child labor with some limitations. All H. R. 585. An act for the relief of Jacob A. Mr. McCONNELL. Mr. Chairman, I of this is as it should be if we are to ef­ Johnson; yield such time as he may require to the H. R. 1625. An act for the relief of Christine fectually carry out the policy of protect­ Kono; gentleman from New Jersey [Mr. WoL­ ing the health, efficiency and general H. R. 2799. An act to amend the act en­ VERTON]. well-being of workers. titled "An act regulating the retent on con­ Mr. WOLVERTON. Mr. Chairman, I I am wholeheartecily in accord with tracts with. the District of Columbia," ap­ am in favor of minimum-wage legisla­ the objectives of the proposed legislation. proved March 31, 1906; tion. In 1938, by speech and vote, I sup­ I shall assist in every way possible · to H. R. 2853. An act to authorize the Secre­ r.orted the enactment of the Fair Labor make the legislation to be passed by the tary of the Interior to issue duplicates of Standards Act, more generally known as William Gerard's script certificates -No. 2, Congress workable and effective. I subdivisions 11 and 12, to Blanche H. Weedon the minimum-wage law. During the pledge my vote and fullest support to the and Amos L. Harris, as trustees; years that have intervened a great legislation. H. R. 4261. An act authorizing the Secre­ change has come in our economic con­ Mr. McCONNELL. Mr. Chairman, I tary of the Interior to issue to L. J. Hand a ditions. Today the cost of living is near­ yield 5 minutes to the gentleman from patent in fee to certain lands in the State ly double what it was in 1938. The Illinois [Mr. VELDE] . of Mississippi; minimum-wage law enacted at that time Mr. VELDE. Mr. Chairman, I want H. R. 4963. An act to provide for the ap­ fixed the minimum-wage rate at 40 cents pointment of additional circuit and district to take a few momer:ts to explain an judges, and for other purposes; and per hour in the several categories of ·em­ amendment which I shall introduce as H. J. Res. 170. Joint resolution designating ployment coming within the provisions an amendment to the Lucas amendment. June 14 of each year as Flag Day. oi the act. This has remained the law My amendment is simple. It calls for a On August 4, 1949: from that time until the present. It has change in the starting wage from 65 H. R. 459. An act to authorize the payment not been changed during the intervening to&75 cents. of employees of the Burea'l. of Animal In­ years, although the cost of living has I realize that the starting figure of 65 dustry for overtime duty performed at es­ greatly increased. Consequently, an cents in the Lucas amendment is neces­ tablishments which prepare virus, serum, toxin, or analogous products for use in the intolerable situation exists that the sarily arbitrary, although I am advised treatment of domestic animals; present proposals seek to remedy. A that some study was made of the cost of H. R. 1127. An act for the relief of Sirkka rate of 75 cents per hour is now pro­ living now as compared to the cost of liv­ Siiri Saarelainen; posed as a minimum wage. Such relief ing in 1945 at which time the 40-cent H. R. 1288. An act for the relief of certain should have been granted long ago. minimum was in effect. On that basis I officers and members of the crew of the steam­ Further delay would be unconscionable. believe it was figured by some members ship Taiyu an; Justice to those in this lower income of the committee that the starting point H. R. 1303. An act for the relief of Dr. Elias Stavropoulos, his wife and daughter; group demands immediate correction of sho"Jld be at 68 cents. Possibly the 75- H. R. 2021. An act to provide increased pen­ the present unfair standard. cen4- starting price in my amendment is sions for widows and children of deceased There have been many proposals of­ not sufficient. As I say, this starting members and retired members of the Police fered in connection with this subject of price necessarily has to be arbitrary. Department and the Fire Department of the legislation. Some seek to clarify, ex­ The 65-cent minimum for a 40-hour District of Columbia; tend, or diminish the coverage under workweek will gross the lowest paid em­ H. R. 2474. An act for the relief of Frank the act; others to change the amount ployee $26 per week. Now, in my dis­ E. Blanchard; trict that is a starvation wage. I think H. R. 3467. An act for the relief of Franz of the minimum wage by the adoption Eugene Laub; • of a formula that would tie the wage that is true of most areas in the United H. R. 4566. An act to revise, codify, and to a Bureau of Labor index based on the States. The Southern States are the enact into law title 14 of the United States cost of living; and other proposals seek exception to this general rule, of course, Code, ent itled "Coast Guard"; and to change the administrative features of but I cannot understand why we should H. R. 4304. An act to record the lawful ad­ the act. These · numerous and diverse let the tail wag the dog in this particular mission to the United States for permanent proposals, under consideration in co ~1- case. . residence of Karl Frederick Kueker; On August 5, 19"4.g: nection with the pending legislation, There. are some 22;000,000 emplayees H. R. 2417. An act to authorize the Secre­ have a tendency to confuse the issue, covered by the present minimum-wage­ tary· of the Air Force to operate and main­ although offered with sincerity and hon­ and-hour bill. according to testimony of tain a cert ain tract of land at Valparaiso, est purpose. The real and fundamental Mr. McComb before the committee.

• 1949 CONGRESSIONAL RECORD-HOUSE 11107 These employees are practically all unor­ Mr. COTTON. Mr. Chairman, the The CHAIRMAN. Is there objection ganized. They do not have the advan­ gentleman from Ohio [Mr. BREHM] has to the request of the gentleman from tage of collective bargaining to raise expressed my position exactly on this Michigan? · their wages. Many of these 22,000,000 point. I cannot accept or support that There was no objection. workers refuse to join unions and suffer portion of the Lucas bill which provides Mr. FORD. Mr. Chairman, I express all the trials and tribulations of union for a 65-cent minimum wage and a the same sentiments as the gentleman members. · They prefer to stand on their sliding scale based on the cost of living. from Ohio [Mr. BREHM]. At . this time own individual initiative and their abil­ I am for a straight 75-cent minimum I would like to indicate my support for ities as workmen to make a living wage wage for all employees covered by the a proposed amendment to the Lucas bill and advance economically. As a result present law. I have stated my opinion by the gentleman from Ohio, Representa­ of their inability or unwillingness to or­ on this point publicly several times dur­ tive BREHM. It is my understanding ganize into labor unions, there is a sharp ing both the Eightieth and Eighty-first that an amendment will be proposed by - difference between the minimum wage Congresses. My position on this point him striking from the Lucas bill the for labor-uniem members and the mini­ has been .strengthened recently by the 65-cent base as well as the sliding-scale mum wage for these nonunion mem­ fact that the Governor of my State provision based on the cost of living bers-too sharp a difference, in my opin­ has endorsed this standard and both index. In my estimation a ft.at 75-cent ion. These 22,000,000 workers in the branches of the legislature have passed minimum is preferable to the present United States deserve the help and pro­ resolutions calling for it. Recently I or original provision in the Lucas bill. tection of their Government, which we have considered carefully the proposal Everyone knows that we in Michigan can give them by passing a realistic for a sliding scale and have come to the pay far more than the 40-cent minimum minimum-wage-and-hour bill. conclusion that I cannot accept it. A under the existing law. FUrthermore, Mr. BREHM. Mr. Chairman, will the minimum wage should he exactly what practically everyone agrees that a new gentleman yield? the term implies-a minimum wage. minimum of 75 cents would not be detri­ Mr. VELDE. I yield. That means a fixed amount, not an esca­ mental to management and industry in MI". BREHM. I compliment the gen­ lator. We are not seeking to determine western Michigan. As a matter of fact, tleman on his proposed amendment. I a wage scale, but a minimuri.1 point and a 75-cent minimum would probably be shall support it' wholeheartedly, provid­ that point should be definite. most helpful to both employees and em­ ing we do have the opportunity of I believe, however, that it would be ployers in the State of Michigan. Cer­ amending the Lucas bill. I am not in most dangerous to pass the Lesinski bill. tainly the competitive position of our favor of a minimum wage based on the Under that bill many of the exemptions furniture industry would be aided if the cost-of-living index. I favor 75 cents, contained in the present law are removed furniture manufacturers in the South but what I would like to see would be the and small business·enterprises, which are were forced to pay a 'decent wage to their Lucas bill with the 75-cent minimum ~t­ actually intrastate in their character, employees. tached to it. will be brought under the requirements The sliding-scale provision if adopted I want to compliment the gentleman of the act. Others will be in a quandary would lead to serious administrative and assure him I will support his amend­ as to whether they are under the act or problems. An increase or reduction in ment. not. Certain processors of farm produce the minimum wage based on a change Mr. VELDE. There is a great deal of would also be Included. Furthermore, in the cost of living index conceivably sentiment that has been expressed in the bill contains several vicious provi­ might compound the difilculties experi­ that regard, -S.nd I appreciate the kind sions, one of which will add confusion to enced by management in trying to live remarks of the gentleman from Ohio. t):l.e question of overtime on overtime; within the law and -the wage-hour ad­ I do, however, like the theories and and another, section 7, authorizes the ministration trying to enforce the Fair principles of the flexible minimum wage. Secretary to bring suits on behalf of the Labor Standards Act. It is more in· keeping with the principles employees, which will cause untold con­ -If we can adopt the amendment to be of free enterprise. The controlling fac­ fusion and a multiplicity of lawsuits. proposed by the gentleman from Ohio, tor is based on statistical data which is I earnestly hope that when the final Representative BREHM, the Lucas bill real and certain, and not subject to po­ vote comes on this question we shall not would be good legislation. In contrast litical maneuvering. A flexible mini­ be compelled to choose between a mini­ to the new proposal by the gentleman mum wage starting at 75 cents and tied mum wage less than 75 cents· or a law from Michigan, Representative LESINSKI, to the cost of living index gives the mar­ which may endanger small business en­ H. R. 5856, is unsound in many par­ ginal employer a fighting chance to stay terprises and deprive their employees of ticulars. I refer specifically to the pro­ in business during a declining period of vision which gives the administrator the work. I am willing to go a long way in right to sue, on behalf of an employee, our economy. It gives the marginal em­ supporting the 75-cent minimum wage, ployee a fighting chance to keep his job for back wages allegedly due. This dan­ _but I doubt if I can pay the price of ac­ in a declining period of business. It also gerous provision in the Lesinski bill must gives him an opportunity to obtain a cepting the Lesinski bill in its present be removed, and I intend to submit such higher wage during the higher cost of form. an amendment for consideration by the living periods in our business cycle. The The Lucas bill clarifies the present law, House. rigid minimum wage of 75 cents, or any preserves its safeguards, and if amended In closing, I repeat the need and neces­ other rigid wage has this vital defect­ to provide a 75-cent minimum, would in sity for a flat 75-cent rate under H. R the marginal employee could never ob­ my opiniop be the best legislation we 5894, and therefore urge favorable -con~ tain more than 75 cents an hour, as he could enact. I shall support such an sideration for the proposed amendment could under the flexible minimum-wage amendment to the Lucas bill and if it is by the gentleman from Ohio. scale. adopted vote for the bill. If the Lucas Mr. KERR. - Mr. Chairman; I ask I feel that my amendment should have bill is not adopted, I trust that proper · unanimous consent to extend my remarks the support of both Republicans and amendments may be adopted to the in the RECORD and include a speech by. Democrats. It is a more realistic start­ Le'sinski bill to restore existing exemp­ Maj. Gen. Clovis E. Byers, of the Army in,' point than the 65-cent wage, possi­ General Staff, at Windsor, N. C., on Vet­ tions. In which case, I could support erans Day. bly it should even be more than 75 cents. that. I hope you will consider this amend­ I do not care what name may be given The CHAIRMAN. Without objection, ment, which I shall introduce at the it is so ordered. proper time, in the light of what is right . the act, or what its number may be, pro­ vided we increase the minimum wage to There was no objection. and proper legislation, instead of in the Mr. LESINSKI. Mr. Chairman, I yield light of political vote getting. 75 cents an hour and preserve the exemp­ 5 minutes to the gentleman from Ken­ The CHAIRMAN. The time of the tions ·and safeguards of the present law. tucky [Mr. PERKINS]. gentleman from Illinois [Mr. VELDE] has Mr. McCONNELL. Mr. Chairman, I Mr. PERKINS. Mr. Chairman, it expired yield such time as he may desire to the seems to me that if we are going to pay Mr. McCONNELL. Mr. Chairman, I gentleman from Michigan [Mr. FoRDJ. our national debt we must maintain a yield such time as he may desire to the Mr. FORD. Mr. Chairman, I ask high national income. There is no bet­ gentleman from New Hampshire· [Mr. unanimous consent to extend my re­ ter way to maintain a high national in­ COTTON]. marks at thic point in the RECORD. come than to stabilize our economy by 11108 CONGRESSIONAL RECORD-HOUSE AUGUST 9 putting a floor under. wages. Many of us I am of the opinion, after careful consid­ hour to $1.37 per hour, or an increase of contend that a meager $30 a week should eration is given to the Lucas bill, H. R. 37 percent. An increase of 10 cents per be guaranteed to workers throughout 6894, which provides a flexible minimum hour over the proposed 65-cent mini­ this country engaged in interstate com­ wage tied in with the cost of living, that mum rate in 1946 is less than half the merce. this Chamber will overwhelmingly vote 37-percent increase for all workers. And · The Lucas bill, H. R. 5894, proposes down such legi.slation which could have this does not take into account the 30- that the minimum wage be modified with a disastrous effect upon our economy. percent increase in the cost' of living reference to a change in the index in To get away from the fear that exists since January 1946. This shows how the cost of living. This is a procedure today, we should plug up these holes much these lowest paid workers need to which I am utterly opposed. It means which are materially affecting our econ­ the assistance of a higher minimum­ frequent changes in the minimum wage omy. I cannot think of any greater wage law. . by small amounts, perhaps a cent or two asset to our economy than passing an We know from studies made available per hour, and leaves everyone in the dark inflexible minimum-wage Jaw with the to the committee and from material fur­ as to what the minimum wage actually floor at 75 cents. nished at the hearings that 75 cents an will be annually. As a member of the Committee on hour or more is the actual minimum be­ The 75-cent minimum is the least Education and Labor, I voted for H. R. ing paid in most of American industry which the economy can afford under 3190 because I felt that an increase in today. In most establishments no present conditions. It is a true floor for the statutory minimum wage is neces­ change will be necessary. I was im­ the wage structure. It is so far below sary to promote the general welfare. In pressed with the fact that the average actual minima being paid in many in­ the light of our 10-year history with the employer did not have to be confronted dustries and localities that there is no national minimum wage law, I am con­ with a change in the law in order to in­ need to tinker with it as the general in­ vinced that. an increase in the statutory crease the minimum wage he is actually dex of the cost of living goes down by a minimum wage to at least 75 cents an paying. However, some employers could few points. Of course, if there were a hour is necessary, first, in order to bring not and other employers would not in­ precipitous decline in the cost of living the statutory 40-cent rate into conform­ crease the minimum wage which. they or in general prices, there would be noth­ ity with postwar prices and the cost of are paying unless such an increase were ing to prevent Congress from reconsider­ living, and second, in order to require made generally applicable to all their ing the problem again. industries in interstate commerce to pay competitors. What does this Lucas bill provide? It a living wage to their workers. Since fewer than 1,500,000 workers all provides 65 cents an hour until December It is a curious thing that those who op­ over the country are receiving less than 31. Assuming that the amendment to pose an increase in the statutory mini­ the new minimum, and most of these are be offered by the gentleman from Illinois mum wage are the very ones who seem already being paid more than 70 cents was adopted, amending the Lucas bill to be so fond of the principle of adjust­ per hour, the adjustment at this time from 65 cents to 75 cents, it would only ing wages to changes in the cost of liv­ should not be difficult. provide 75 cents an hour until December ing. Yet it is a fact that the 40-cent The adjustment which will be required 31, 1949. It would be possible next year minimum provided in the law of 1938 by the 75-cent minimum will be much for the rate to be 50 cents an hour, and was adopted by some industries as early less than that required when the Fair I am sure that there is not a Member as 1940 and was generally attained in · Labor Standards Act of 1938 was first put of this body who does not want to look practically all industries by 1942. At into operation. We learned then that beyond next December 31 and head off that time the index of consumers prices an effective minimum wage raises the the possibility of the minimum wage next for moderate-income families was 116- wages of the lowest paid workers and year being 50 cents an hour. That is the 1935-39=100. • preserves and encourages cmppetition on reason I say that if we vote for the Lucas At the present time this index of con­ a higher plane. Employers who pay un- amendment we are short-sighted insofar sumers prices stands at about 170, two ')ustift.ably low wages are not then given as trying to plug up holes that now exist or three points below the high reached a competitive advantage over those em­ in our economy in order that we may during the postwar 'period. In other ployers who pay a decent minimum wage. stabilize our econ.omy. words, the cost of living is about 60 per­ I said that in addition to the need to Those of us· who have faith in the cent higher than it was in 1942. Any­ bring the statutory 40-cent rate into con­ minimum-wage principle believe that a body who;received only 40 cents an hour formity with present prices and the cost stable statutory minimum wage does pre­ in 1942 and is not receiving 65 cents of li:ving, a 75-cent minimum is necessary vent wages from breaking too sharply, an hour for the same work in 1949 is be­ in order that industries engaged in inter­ with the expectation of still further ing paid less than the minimum wage state commerce actually pay a living breaks to come. We must remember which was established in 1938, when we wage to their workers. that a fundamental purpose of all mini­ had a national income of about $65,000,- I am not now thinking of a wage neces­ mum-wa.ge legislation is to fix a floor for 000 ,..000, in contrast with the national in­ sary to support a family, but just the wages and to prevent hesitation, delay, come running over $200,000,000,000 in amount of money required for any self­ and uncertainty that arise when pro­ 1948 and 1949. respecting person to live in any com­ ducers have no measuring rod whatever Considering the sharp increase in in­ munity in the United States. Admitting to define what their competitors' costs come from all sources, it is altogether that the cost of livintr is higher in our and prices might be. unreasonable to maintain the same min­ larger cities than in the smaller com­ We must recognize also that the ad­ imum wage standards which we adopted munities,· it must be recognized that 75 ministrative problems created by fre­ .in 1938 when the national income was cents an hour is only $30 a week even at quent changes in the statutory minimum only $65,000,000,000 and we had about full employment. In cities like Chicago, wage would be considerable. It takes 8,000,000 unemployed. The 40-cent min- New York, Philadelphia, and Los Angeles time and frequent visits from investiga­ . imum·rate of 1942 is the equivalent of 65 the going minimum rate is higher than tors to get across the requirements of a cents in today's purchasing power. 75 cents an hour, and should be. minimum-wage law to all employers. The 10-cent additional increase which The 75-cent rate will just barely pro­ We know that many violations are unin­ carries the statutory minimum to 75 vide a living wage for a single person in tentional and that once the matter is cents is another 6-percent increase in medium and small-:size communities. It explained there is less of an enforcement terms of the purchasing power of 1942- is necessary for the health and self­ problem thereafter. If minimum rates altogether an increase averaging about were changed by some index of the cost 1 percent a year since 1942. The increase respect of the workers and can in no way of living, this might involve small annual in real wages through the years has · injure the industries which may have changes up and down frequently enough averaged about three times this amount. to increase the wages of a small number to make the problem of compliance and As early as 1945 the Senate Labor Com­ of their employees by a few cents per investigation more diffcult to enforce, mittee approved a 65-cent minimum hour. while the question of good faith and the with an automatic rise to 75 cents. I want to say that I was personally in application of the penalties of the law In 1946 the House also voted out a favor of the provision in the original bill would always be involved. 65-cent minimum. Since January 1946, which would have enabled industry com­ This Congress recently showed its dis­ average hourly earnings in manufactur­ mittees, industry by industry, to raise approval for flexible price supports, and ing industries have gone from · $1 per minimum wages up to $1 per hour. 1949 CONGRESSIONAL RECORD-HOUSE 11109 There are a number of industries of calendar years than to go into the cir­ in the South and his reference 'was de­ where most of the employers• already pay cumstances of each case. scriptive for purposes of brevity. more than a 75-cent minimum, and if By drawing the line at such a large I cannot believe that many Members such a rate were made applicable to all volume of business as $500,000 a year, we from districts in the South will favor and competitors, many industries would be have assured that the family concern, support the Lucas substitute. The re­ agreeable to establish a minimum rate the neighborhood stores and service sults of the Roosevelt and Truman lead­ above 75 cents per hour. However, we shops and the small struggling establish­ erships, particularly along economic did take that provision out of H. R. 3190, ments will be able to work out this prob­ lines, have been very favorable not only and it is also omitted from H. R. 5856. lem in their own way and without the to the entire country but to the South. The minimum wage provided in H. R. legal requirement imposed on the chains, Let me brieft.y refer to them: The Ten­ 5856 calls for only 75 cents an hour in all department stores, and the large retail nessee Valley Authority, agric,ulture. industries. and service establishments. Where was cotton and wool 16 to 20 years There was one other provision of H. R. However, the committee has deleted ago? What kind of diversified farming 3190 of which I heartily approved. This this provision from their substitute bill, did the South have then? It was under. has to do with the application of the H. R. 5856, which many members of the the late Franklin Roosevelt and ·still minimum wage to retailing; Under the Committee on Education and Labor re­ later under President Truman that new act as originally passed in 1938, the luctantly agreed to, including myself. life was injected into the veins of the phrasing was so general that the Ad­ Mr. HOFFMAN of Michigan. Mr. system of our whole economic life and ministrator had little guidance in deter­ Chairman, I make the point of order that the record shows it has particular appli­ mining the. intent of Congress as to who a quorum is not present. cation to the South. was and who was not covered in the The CHAIRMAN. The Chair will Under what administrations have retail field and he requested a clarifica­ count. [After counting:] Sixty-five greater considerations been expended tion of the provision. We had drawn Members are present, not a quorum. The through rivers' and harbors' improve­ the line at the point where an establish­ Clerk · will call the roll. ment, :flood control than under that of ment did an annual business of over The Clerk called the roll~ and the fol­ the late Franklin Roosevelt and now $500,000. . lowing Members failed to answer to their under President Truman? The wage­ The retailing provision appears under names: hour law has been very beneficial. It the section of the bill dealing with ex­ [Roll No. 168] has brought greater income and the ben­ emptions. This provision exempts from Bailey Gilmer Poulson Bentsen Gordon Powell efits that :flow therefrom to millions of both the wage-and-hour provisions any Bland Gore Rains men and their families with hope for the employee of a retail or service establish­ Blatnik Gregory Ribicoff future and with stronger moral outlook ment whose employer di!.1 a total annual Bolton, Ohio Halleck Richards through the strengthening of the family business of less than $500,000 during the Boykin Hand Rivers Breen Harrison Rogers, Fl&. life. preceding annual year. Buckley, N. Y. Hinshaw Roosevelt What about rural electrification? In other words, it exempts from the Bulwinkle Hope Sadowski What about the elimination of the minimum-wage requirement practically Bur)rn James St. George Burleson Jonas Scott, farmer-tenant system? all the neighborhood stores. To do an Burton Kennedy HughD., Jr. These are all monuments to the annual retail business of $500,000 a retail Byrne, N. Y. King Smith, Ohio memory of the immortal Franklin establishment would have to employ from Cannon Kirwan Smith, Va. Celler McGregor Thomas, N. J, Delano Roosevelt, which our courageous 20 to 30 workers. This would be $17,000 Chatham Mason Towe President, Harry S. Truman, is complet­ to $25,000 annual sales per employee, Chiperfteld Miles Welch, Calif. ing and extending. which is way above the known average. Christopher Morrison Whitaker Clevenger Moulder Wigglesworth The late Franklin D. Roosevelt and In service establishments, where sales per Crosser Norton Withrow President Truman have on several oc­ person are much less because the cost of Dawson O'Hara, Ill. casions recommended increasing the . the goods is not counted, it would mean Dolliver Patman Eaton Pfeifer, present minumum wage from 40 cents to an establishment employing 40 or more Engle, Calif. Joseph I;.. at least 75 cents pe:i; hour. The 1948 persons. In other words, only the large Fellows Plumley Democratic platform called for an in­ retail and service establishment, mostly Accordingly the Committee rose; and crease to at least 75 cents per hour. the chains and department stores, would The passage of the Lesinski bill, the have been covered by H. R. 3190. Testi­ the Speaker having resumed. the chair, Mr. COOLEY, Chairman of the Commit­ main feature of which is the 75-cent mony was introduced before our commit­ minimum wage, is for the best interests tee that showed some of the large de­ tee of the Whole House on the State of the Union, reported that that Commit.. of our country. partment stores of this Nation paying It seems to me it is particularly so for their employees a ridiculously low wage. tee, having had under consideration the bill H. R. 5856, and finding itself without the people of the southern part of the And why should not they be required country, beneftcial to all, but certainly fo pay the minimum wage? To do an a quorum, he had directed the roll to be called, when 356 Members responded to not to the exclusion of any part. I annual business of $500,000 a retail store therefore cannot believe that many of or service organization can practice their names, a quorum; and he submitted herewith the names of the absentees to my collegaues from districts in the South modern economies, can purchase on a will support the Lucas substitute. It large scale and engage in business on an be spread upon the Journal. The Committee resumed its sitting. would certainly not be in the best inter­ efficient basis. There are millions of ests of the people as a whole to do so. American workers employed in retailing Mr. LESINSKI. Mr. Chairman, I yield 15 minutes to the gentleman from In relation to the other observation and there is no reason why those large of many Republicans lining up tenta­ employers in interstate commerce should Massachusetts [Mr. McCORMACK]. Mr. McCORMACK. Mr. Chairman, in tively behind the Lucas substitute, it will not be subject to the same minimum­ be interesting to note the vote. If the wage standards of business in other lines. last night's Washington Star in the news stories on yesterday's debate on the Lucas substitute should be adopted in It is better to draw the line at some the Committee of the Whole, and I doubt definite point whh!h can be determined pending bill and under an AP dispatch appeared a very interesting observation it, and hope it will not be adopted, there than to leave the decision subject only will be a roll-call vote on it in the House. to administrative rulings and the possible made by the writer that attracted my attention. He said: If that should happen that vote will de­ unequal application of the law. When termine the position of Members for or we permit a man to vote at the age of 21 Many southern Democrats and Republicans were lined up tentatively- against the 75-cent minimum wage. No we have made a firm decision that he is matter how much a Member may think or ought to be a man; this does not mean ! hope it is only tentatively if what he he is hiding the issue, that will be the that there are not some young men under said is true- issue. 21 who would not be fit to e~ercise the behind the measure sponsored by Represent­ The Republican Party had a meeting franchise or that even occasionally a ative LucAs, Democrat, of Texas, a Labor recently of members of its national com­ man over 21 ought not to be given a little Committee member. mittee to choose a new national chair­ more time to find out what it is all about. By "Democrat" he means Members man. This is the first question of im­ Still it is better to have a definite guide who_represent districts in States located port to the people since the election of a XCV--700 11110 CONGRESSIONAL RECORD-HOUSE AUGUST 9 new chairman by the Republican Party. So, under the original House bill Let us look at the $400,000,000-plus in­ I wonder what his, the new chairman's, as reported by the committee, 2,- crease from another angle. - Last year position is on this bill? 400,000-1,500,000 under the present there was voluntarily paid a $12,000,- At that meeting our colleague from law and 900,000 of the 5,000,000 covered 000,000 increase in wages and salaries Pennsylvania [Mr. HUGH D. SCOTT, Jr.], by extended coverage-would benefit. throughout the country. Compare this former national chairman, is quoted in It is only that group that receives less $400,000,000-plus to be paid to this un­ the press as saying: than 75 cents an hour; all the others, fortunate group to the $12,000,000,000 Unless we search our souls and stand very through collective bargaining and in­ voluntary increase in wages. What kind clearly in the public mind for things which creases given by their employers, receive of effect would that have upon our na­ people instinctively feel are good for them, a rate of 75 cents an hour or more. The tional economy? It would have a bene­ no· amount of well financed public relations Lesinski substitute reduces the number ficial effect, in my opinion, but certainly will make up for the lack of such a public of both groups provided for in H. R. 3190. it would have no adverse effect. We policy. Now, another interesting thing. Of would simply be doing justice-the first Let us all, Democrats and Republicans, the 1,500,000 workers subject to present job of government, justice-to a fine "search our souls" and ask ourselves and law and receiving less than 75 cents per class of people, Americans, but again, all answer the question: "Is .75 cents an hour hour, about 1,000,000 are employed in human bein.gs. Certainly for anyone to too much to pay to persons covered by manufacturing industries and about argue that this increase in such a deserv­ the wage-and-hour law?" 500,000 in nonmanufacturing industries. ing direction would adversely affect our This bill affords to workers covered Even if the original bill is adopted, as I national economy seems to me ridiculous. the minimum of decent legal considera­ said, only 2,400,000 workers would bene­ Let us, _in searching our souls-oh, tion. That is the least we can and will fit by the increase, and one-half of them what beautiful words they are to ex­ do if we only "search our souls." now earning· less than 75 cents are being press, but what meaning there is in them If the Lucas substitute should be paid between 65 and ·75· cents an hour. if carried into effect, these words ex­ adopted, which I doubt, on roll call, it Under the Lesinski bill it would be less pressed by a colleague of ours, the former will be interesting to see, as our friend in number. But, of the 1,500,000 now chairman of the Republican National from Pennsylvania [Mr. HUGH D. ScoTT, covered under existing law getting less Committee-let us in searching our souls Jr.] recently said outside of these Halls than 75 cents, and of the ;:tdditional ones examine the bill and its effect from an­ how many Republicans have searched to be included, less than 900,000, one­ other angle. . It is simply extending half of them receive from 65 to 70 cents justice It their souls. to these workers. is an attack One thing is certain, the American an hour at the present time. ' on economic insecurity in a sound, people are watching this legislative bat­ I refer to this for two reasons: First, healthy way. It is strengthening the tle. They know the Lucas substitute can to show that the passage of the Lesinski family life of America, and the family only be adopted by the great majority substitute does not mean an increase for life of those workers means just as much of the Republican Members, plus some all workers covered by the present law, to them as your family life means to you Democrats voting for it. The American 22,600,000, and by his bill; second, more and my family life means to me. The people have not been deceived or fooled important is the fact, that the wage pro­ stronger we make the family life of visions of the Lucas substitute is an at­ America the stronger we make our Gov­ in the past by such tactics. Note I said tack on the present wage structure. ernment. When we pass this bill .we are "some Democrats"-not all, naturally. While I assume he does not intend same, not only bringing to these people con­ We have great men from all sections of it is, in fact, a wage,..cutting bill. That fidence in the leadership of our Govern­ the country. is ·what the Lucas substitute is. Cer­ ment and in our Government but we are The American people have not been tainly if anyone is going to vote against strengthening their fa,mily life, and by­ deceived or fooled in the past by such the Lesinski bill, he does not want to vote strengthening their family life we are tactics. The 1948 election is the ·best for a wage-cutting bill of present wages strengthening American society, we are evidence of this assertion. that the financialJY unfortunate workers, strengthening our Government, for after The American people want progressive the 22,600,000, are presently receiving. all the very basis of our Government and leadership in Government. They quickly Who wants to knowingly vote for a wage­ the very basis of our society is the family detect and on election day repudiate a cutting bill, particularly to the fine life. Strong family life, strong govern­ party of blind opposition, or a political Americans, but unfortunately financially ment; weak family life, weak govern­ party that fears making its own record situated persons covered b; the wage­ ment. by following the leadership of a member and-hour )aw or Ly the provisions of Without regard to party, my col­ of the other party. the Lesinski substitute? leagues, I say, in the words of our friend As our friend from Pennsylvania [Mr. Let me state another pertinent fact. from Pennsylvania, "Let us search our HUGH D. ScoTT, Jr.] said, and he is former The average increase required to in­ souls." If you search your soul and vote Republican national chairman, and his crease the wages of these low paid em­ your soul you will vote against the Lucas statement is significant today, every one ploye~s to 75 cents per hour, very few bill. No matter what amendments you of t:.s if. we "search our souls" will vote of who earn as low as 40 cents per hour, may vote for in relation to the Lesinski against the Lucas substitute and for the is anywhere from 5 cents to 15 cents per bill, you will vote for a 75-cent minimum Lesinski bill. hour. We must remember that we are wage for the persons covered by the Let us see what the facts are. There today considering a bill that relates to wage-and-hour law. are about 22,600,000 persons now subject and affects low paid employees, but we Mr. McCONNELL. Mr. Chairman, I to the minimum-wage provisions of ex­ a1so must remember they are human be­ yield myself 20 minutes. isting law. Out of this large group about ings, just like you and me. What will Mr. . BREHM. Mr. Chairman, will the 1,500,000 persons earn less titan 75 cents be the effect of the increase under the gentleman yield? an hour. So, what. we are dealing with, Lesinski bill and under existing law to Mr. McCONNELL. I yield . .those covered by the Lesinski bill, is 1,- our whole economy if we provide for a Mr. BREHM. Mr. Chairman, if I cor­ 500,000; not a wage increase to 22,600,000, 75-cent minimum? That is a pertinent rectly understand the parliamentary sit­ but 1,500,000, and that is an answer to question. It cannot be much more than uation, the vote on the Lucas substitute those who say it would have a serious $400,000,000 annually. Under the origi­ will not come until after the Committee impact upon our national economy. nal House bill, H. R. 3190, it is estimated has had the opportunity of amending it. H. R. 3190 would have included about at $500,000,000 annually, so it will be less Now if the Lucas bill should be amended 5,J00,000 more workers as the result of th.an $500,000,000, and not much more the changes in its coverage and exemp­ raising the minimum wage from ·65 to 75 than $400,000,000 annual increase in cents an hour and also if the formula of tion provisions. Of this 5,000,000 only wages. It woulO represent a little more 900,000 would benefit; this deserving than 1 percent of the total wages now basing the rate on a cost-of-living index paid to the 22,600,000 workers covered is removed, then the statement just made group receiving less than 75 cents per by the majority leader the gentleman hour. - by the present law. It is a relatively Under the Lesinski substitute it will small increase. A 75-cent maximum from Massachusetts lMr. McCORMACK] be less than 5,000,000, and therefore less would have no harmful effect, in fact it is inaccurate. For instance, the gentle­ than 900,000 newly covered employees would have a beneficial etlect o~ our man from Massachusetts just made the .who will benefit if this bill is passed. economy as a whole. assertion that anyone whp voted for the 1949 CONGRESSIONAL RECORD-HOUSE . 11111 Lucas bill on a roll-call vote would defi­ thinking and in their approach to this attempt to cover purely local pursuits nitely be putting himself on record as be­ problem. I will giYe you a very glaring or intrastate service trades. I will re­ ing opposed to a 75-cent minimum wage. example. We just heard a speech a few peat, if this act applied only to those Now, Mr. Chairman, my position on minutes ago on the floor about the desire originally intended or if it applied only this legislation is well known. I have to help the poor workingman, ·and yet to manufacturing, to mining, and to been on public record for quite some time the present Lesins:-~ bill does what has transportation, I would advocate a high­ as favoring a 75-cent minimum wage in not been done before, in the Fair Labor er statutory minimum wage than I now those industries which are engaged in in­ Standards Act, and what we are not ad­ support. It should be clearly under­ terstate and foreign commerce. There­ vocating in the Lucas bill. It exempts stood that the issues involved in this fore, assuming that the Lucas bill should large mail-order houses from coverage bill are the coverage and overtime pro­ be amended as I have indicated and the by the Fair Labor Standards Act. We visions, and not the minimum wage rate. vote then come on substituting the Lucas are not advocating that, but the side The wage rate becomes an important bill for the Lesinski bill, the statement which is saying that the soul should be issue only because of the effect it would made by the gentleman from Massachu­ searched, as far as we are concern_d, has have on small local businesses which setts [Mr. McCORMACK] would, as I have deliberately exempted the employees of were not intended to be covered in the previously stated, not be accurate. I the large mail-order houses from cov­ first place. But congressional i.ntent to want the record to definitely show this erage by this act. leave local business to the protection of distinction. Let us consider anc·ther matter. It is the States has not been respected. There are several provisions contained almost shocking when you hear it. An Gradually and persistently the courts in the Lucas bill which I prefer over the exception has been put in here par­ and the Administrator have extended the Lesinski bill. However, I favor that pro­ ticularly for the Louisiana sugar cane law's coverage to bring within it many vision of the Lesinski bill which fixes the processors that would permit them to local businesses. rate at 75 cents in preference to the Lu­ work their Jamacian workers 80 hours a As many of you are aware; the Fair cas" bill which fixes it at 65 cents with week, and pay them 40 cents an hour or Labor Standards Act is probably the future rates being tied to a cost-of-living less. Is that so humane? Let us call most complicated piece of legislation index. Therefore, my position is quite these shots where they fall. I tried to that this Congress will be asked to con­ clear. If the Lucas bill cannot be amend­ be reasonably patient in this, but I do not sider. Fortunately; there are general ed in at least these two specific in­ like to be put in the classification of be­ areas of agreement as to many parts of stances, then I will support the Lesin­ ing inhuman. We are trying to be hu­ the two bills, which we will be asked to ski bill and attempt to amend it in cer­ man. We are trying to protect men not consider. Therefore, we can simplify tain instances. Even if the amendments only as to their jobs but also as to the our task to some extent if we confine fail, which I have in mind, I will still vote purchasing power of their dollar when ourselves to a discussion of the contro­ in favor of final passage, as in my opinion they buy the necessities of life. versial sections of the bills. These issues the minimum wage should be increased I think I made this very clear yester­ are the coverage and exemption provi­ beyond 40 cents in those industries or day when I said that if we could find sions, the minimum-rate and maximum­ businesses engaged in interstate and for­ some way of applying the provisions of hour provisions, and the administration eign commerce. this act as it was originally intended by of the act. It is my intention at the proper time Members of Congress, or if we made it I do not have enough time available to to off er an amendment to the Lucas sub­ applicable to manufacturers, mining, and do it now but I am hopeful that during stitute in an effort to accomplish the transportation-those industries in in­ the 5-minute debate we shall be able to above objectives. terstate commerce-I would be able tq, clarify the various features of the bill Mr. McCONNELL. Mr. Chairman, I support a 75-cent rate. that will be before us. am sorry this issue has to be put in the We are not cutting wages. To my Since the most important issue is the realm of partisan politics. I do not mind that is the most absurd statement coverage provisions, I shall begin by dis­ know of anyone who has searched his I have heard so far during this debate. cussing them. heart a·nd soul more than I have over We are not cutting wages. We are call­ Late last week a mimeographed sum­ the past 3 years for a correct solution ing for an increase in the Minimum rate mary of the Lesinski bill, H. R. 5856, was of this problem. First of all there is at the present time of more than 60 per­ delivered to my office. It contained the quite an argument among various peo­ cent. I am not arguing about the cor­ statement that "all" retail and service ple as to the correctness of a minimum rectness. of 65 cents as a starting point. establishments are exempt. The word wage law-as to whether it is workable I do not know. I am seeking the right "all" is underlined. This statement is in a free economy. Some people believe level at which to start the flexible rate. true-as far as it goes. However, the it should cover every employee in Amer­ I have not even made an effort to force mimeographed summary does not point acceptance of a flexible rate during the out that there is a tremendous differ­ ica. There are others who believe it is years. If there is a better answer, let us sound but think there should be many ence between what we think of as a retail exemptions so that very few will be find it, but there is one thing I shall or service establisr.ment and what such covered by such a law. Others think insist upon, and that is that I shall be terms mean when used in the Lesinski credited with sincerity in my approach to bill. we should have a flexible rate while still this problem. others say we should have a rigid rate. Now ordinarily, we would not think Frankly, there is a great deal of sincere When I said I would support a higher the employeps of a local window clean­ earnest searching for a correct solution rate if a bill were applied to interstate ing business would be covered by the act. commerce, to big business, but did not However, the courts have upheld the of a difficult problem. extend into the various local small busi­ We have heard it said rather jokingly, ruling of the Administrator that em­ nesses of our econo~ay, I was a ware of ployees of such a company who clean and I think this expresses the situation some statements made in prior years, and as I have discovered it over the past sev­ windows in buildings where workers pro­ eral years-it was said to me in a joking I would like to bring them to your at- duce goods for commerce are covered by tention: · the minimum-wage and overtime pro­ way-"Sam, why do not you make the When the late President Roosevelt r£.te from two to five dollars an hour visions of the act. asked Congress to enact the Fair Labor I can cite you other actual court de­ and then exempt everybody?" That is Standards Act, he said it was to protect cisions and administrative interpreta­ the attitude I have found frequently. "those who toil in factories." He fur­ tions of the act which are even more They do not mind higher rates, but then ther proposed that those in purely local ridiculous. Now you are undoubtedly in­ they say, "Exempt certain industries in pursuits and services not be covered. terested in how the coverage provisions my locality." For goodness sake, we At the joint committee hearings on the of this act have been allowed to run so must play it down the line and be level act in 1937, Assistant Attorney General far afield from congressional intent. If with everybody, but you just cannot Jackson-now Justice Jackson, Secre­ you will study the definition of the term make somethin& that will suit the entire tary of Labor Perkins, and Chairman ''produced" contained in section 3 (j) Membership of the House. That is one · Black of the Senate Labor Committee­ of the Lesinski bill, you will find the of the reasons a flexible rate was con­ now Justice Black-all emphasized that answer to your question. "Produced" is sidered as probably answering the ob­ the bill was directed at producers for in­ defined as any process related-or occu­ je.ctions of many types of people in their terstate commerce-and that it did not pation necessary to the .production of 11112 . ·CONGRESSIONAL RECORD-HOUSE Auaus1' 9 goods for commerce, which is the same the Lucas bill ·treats the coverage of ing the particular cases where they are language as is found in the Fair Labor small-business establishments by modi­ below a minimum standard.:.__such as Standards Act. The Administrator has fying the definition of the term "pro­ sweatshops and the exploitation of cer­ ruled that he will interpret the coverage duced" in section 3 (j). In the Lucas tain types· of workers. - Its function is provisions broadly. In his interpreta­ bill, production of goods for commerce not to affect all wage earners, but merely tion of the act, the Administrator stated: means an activity "closely related or in­ to protect certain individuals at the low­ It ls evident that, apart from certain spe­ 'dispensable" to such production. There­ est fringe of the labor force. cific exempt ions enumerated in the statute, fore, employees of certain businesses will Today we are to consider the problems Congress int ended a very wide application no longer be covered by the act simply to be encountered in determining a cor­ of its regulat ory power over interstate com­ because their work is but remotely con­ rect minimum-wage figure; whether it merce. nected with the production of goods for should be a rigid 75-·cent rate or a flexible Just like every river must eventually interstate commerce, as is now the case. one based on the cost of living. An ex­ :flow to the sea--so every worker by some In addition to limiting the coverage ample of the defect in a rigid minimu.m­ stretch of the imagination-is necessary provision, the Lucas . bill establishes a wage rate is the present law, which has to the production of goods for com­ practical test of a "retail and service es­ not been changed to reflect the :fluctua­ merce. Therefore, the language of the tablishment." While, the Lesinski bill tion upward in the cost of living. Every act can be stretched to cover millions gives an artificial definition as to what time there is a marked change in the cost of additional workers in this country­ constitutes a retail or service establish­ of living pressure is put on Congress both whenever the Administrator is ready to ment-based on arbitrary interpreta­ for and against changes in the rate. All do so. tions of the Administrator-the Lucas of this would have been eliminated if the Since there is no question that em­ bill exempts all retail and service estab­ minimum wage would have been auto­ ployees of local retailers and intrastate lishments which are recognized as such matically adfosted each ·year to the service establishments would be covered in their particular industry, and do not changes in the cost of living-similar to unless specifically exempt-it becomes derive more than 25 percent of their dol­ the provisions of the Lucas bill. necessary to determine whether they are lar volume from sales for resale, as re­ Many qualified persons are divided in exempt under the Lesinski bill. The an­ sale is defined in the bill. their opinion concerning future econom­ swer depends upon whether such business The Lucas bill also exempts laundries ic changes in this country. During such fits within the narrow definition in the which do not derive more than 25 per~ an uncertain period, there is an under­ Lesinski bill-and it is impossible to un­ cent of their dollar volume from cus­ standable caution in the fixing of a rigid derstand the effect of the retail and serv­ tomers in niining, manufacturing, trans­ minimum rate at any figure. If the in­ ice definition in the bill unless you know partation, or communications business. flationary cycle resumes its upward the meaning it has been given under in­ It also provides that local retail and march, Congress may be fixing too low terpretations by the Wage and Hour Ad­ service establishments shall not lose a rate. If a sharp readjustment occurs ministrator. their exemption simply because they in the economic structure,_then there is In order to bring employees . of local process the things they sell. This pro­ an inherent dariger of setting too high a retail and service establishments under vision exempts drug stores where pre­ figure-dangerous to employee and em­ the act, the Administrator has invented scriptions are made, small bakeries ployer alike. With the.objective in mind a class of businesses designated as i;ion­ tailor shops, and other businesses which of protecting the relative purchasing retail. do some work on the goods they sell. power of the marginal worker. and with To you and me, a nonretail establish­ These could be covered_..:.in whole or in a desire to act in ~m equitable and just ment would look like a retail establish­ .part-by- the Lesinski bill. manner,. it seems sensible and sound to ment. But that is because we are not As I have said, it is important to con­ adopt an automatically adjlistable rate acquainted with the nonretail toler­ sider that small businesses in all sec­ at this time. - · ance-which has also been invented by tions of the country will be affected by The advantages of such a provision the Administrator. Under the nonretail the minimum-wage rate. However, this are, I hope, too obvious to neeq exten­ tolerance, a businessman who would far-flung coverage of the act is even more sive exposition. Clearly, since· the basic otherwise be thought· of as a retailer important in regard to its overtime re­ purpose of a statutory miru.mum wage is loses his exemption if more than 25 per­ quirements than in its minimum-wage to assure a worker a certain minimum cent of his dollar volume is derived from provisions. At present almost every purchasing power, the only means by nonretail service or selling. This business, large or small, is paying its em­ Which this can be assured is not by just includes: ployees more than the statutory mini­ giving him so many cents an hour, but First. Any . sale in ·quantities larger mum of 40 cents. They have to, in order only through tying what he gets in wages than ordinarily sold by such establish­ to get the kind of employees they want. with the prices he has to pay for what ment. It is the overtime provisions that hurt he buys. The best measure of such Second. Certain types of sales at a these employers--especially in small prices for this purpose is the BLS cost­ discount. towns serving a rural area where work­ Third. Any sales to other business­ of-living index. ing hours must be adjusted to the con­ I am not going on with this at the men-regardless of quantity sold-if the venience of customers. In such cases the goods are resold by them. present time because when the amend­ stretched coverage of this act affects the ment is introduced under the 5-minute Fourth. Any sales of goods not ordi­ employer even if he is paying his em­ narily bought by individuals for their own rule the various provisions will be clearly consumption. ployee $60 a week-because he is re­ explained. But I would like to make this Most retailers make some saies in each quired to pay time and a half for over­ last-minute appeal to you, then I shall one of these categories-but, -neverthe­ time work which is necessary. It is im­ yield. No matter how you feel about less, they are still considered to be re­ portant to remember this fact-that the the minimum-rate provision-whether tailers by other members of the trade humanitarian appeal for a minimum it should be fi.Xed, whether it should be and by the public generally. But if more wage -will apply only to a few fringe :flexible, whether it should be ·higher than than 25 percent of his dollar volume is workers-but the overtime requirements 65 cents, or whatever it should be-fun­ derived from such sales, a businessman will force many employers to pay certain damentally, if you really want clarifica­ loses his status as a retailer under the employees as much as $7 to $10 an hour, tion for the small-business establish­ Lesinski bill. As you can see, it is quite and even more. That is the real danger ments of this country so that they will a feat to be considered as a retail or of letting the coverage provisions of the . not be forced either to go out of business service establishment under the Lesinski act get completely out of control. or lay off some of their workers if you bill. Many of this country's small iocal I shall not use this time to discuss the want that, then the Lucas bill by all businesses would not fit within the defi­ argument for and against a minimum­ means over the Lesinski bill. nition-and these would not be exempt, wage law. The common purpose of a Mr. PERKINS. Mr. Chairman, will After general debate on this matter minimum-wage law is to prevent the the gentleman yield? has closed, it is expected that H. R. payment of unduly low wages---or op­ Mr. McCONNELL. I yield to the gen­ 5894-the Lucas bill-will be offered as pressive wages. This law is not con­ tleman from Kentucky. a substitute to H. R. 5856, the Lesinski cerned with regu~ating wages among all Mr. PERKINS. Going back to the re­ bill. It might be well to consider how levels of workers, but only with eliminat- tail provision that the gentleman just 1949 CONGRESSIONAL RECORD-HQUSE 11113 discussed, I believe that on page 28 of 25 percent of the business is done on a the dire predictions since the passage of the Lucas bill under exemptions it is big scale, that is, they sell big bills. Now, the act, American industry and business provided that any employee employed by then, under the Lesinskil bill, are they is in a much better financial condition any retail or service establishment, more considered nonretaiI? · today than it was at the time of the pas­ than 50 percent of which establishment's Mr. McCONNELL. They are consid­ sage of the original law. Profits are at annual dollar volume of sales of goods ered nonretail under the Lesinski bill on record levels and business in general is or services is made within the State in account of the quantity and the resale enjoying the greatest 'prosperity in the which the establishment is located, is provisions. Much of their business, as history of our country. exempted. Now, that is the exemption the gentleman says, is big business. This bill will help business and indus­ provided in the Lucas bill, so far as re­ Mr. JENSEN. Does the Lucas bill take try which must depend upon the workers tail and service establishments are con­ care of that? to purchase the products they manufac­ cerned? Mr. McCONNELL. Yes; to the satis­ ture. It is a sort of insurance of future Mr. McCONNELL. We did not ex­ faction of the retail-lumber dealer. purchasing power and a 75-cent-mini­ empt the large mail-order houses. Mr. LESINSKI. Mr. Chairman, will mum wage will stabilize our economy at Mr. PERKINS. Let us take a man the gentleman yield? a much higher level than the original • engaged in the retail business near a Mr. McCONNELL. I yield to the gen­ legislation. State line. Under the Lucas bill, if it tleman from Michigan. It is · a shocking tLing to know that is established that he does more than 50 Mr. LESINSKI. I understand it is a there are today thousands of persons em­ percent of his business across the bor­ question of who has the right to pro­ ployed in the United States at wages of der-in other words, interstate-then mulgate the rules, and everybody knows less than 40 cents an hour. On the basis under the Lucas bill he is covered? that the Administrator has not got those of 40 hours' employment, their income Mr. McCONNELL. That is quite cor­ rights. Is it not proper that we should is $16 a week. These deplorable condi­ rect. No serious obje.ction has come have some department that would have tions exist all over the country including from the retail and service establish­ the right to promulgate ·rules? my own State and I am anxious to see ments on that. If more than 50 percent Mr. McCONNELL. I would like to th~r: corrected. of their business is interstate, they ex­ state that I object to the rule-making The 75-cent minimum .wage provision pect to come under the act. power in the Lesinski bill which would of this bill has no strings attached in Mr. PERKINS. Under the Lesinski have applied to it criminal penalties, and the form of so-called cost-of-living ties. bill, the illustration I just gave would not so forth. I wculd object to that, but I am This is the rate which has long been be covered. In the event he was doing not even addressing myself to that prob­ widely recognized as a fair and practi­ more than 50 percent of his business in­ lem. I am addressing myself to the cable minimum wage rate. Approvai of terstate, he would not be covered? twisted phraseology and the twisted this rate was a major plank of the 1948 Mr. McCONNELL. Under the Le­ meaning that the Administr11tor has put Democratic platform, and a campai sinski bill 'i on the Fair Labor Standards Act. Even commitment of many members of the Mr. PERKINS. If he was doing 75 if you give him rule-making power, you Republican Party. Adoption of any percent of his business interstate he have to be sure hovr he is going to in­ lower rate would represent gross injustice would not be covered? terpret the rules, and I know and you to the less fortunate workers, condemn­ Mr. McCONNELL. There is no test in know how he has interpreted them in the ing them to support their families on in­ the Lesinski bill so far as interstate and past, and we also know that the courts comes of less than $1,500 a year. intrastate business is concerned. follow the rulings of the Administrator This bill will not make the Fair Labor Mr. PERKINS. Under the Lesinski to a marked degree. Standards Act a perfect instrument for bill he is completely exempted, regard­ The CHAIRMAN. The time of the maintaining decent minimum living less of the interstate or intrastate char­ gentleman from Pennsylvania has ex­ standards. The measure does broaden acter of his business, am I correct? That pired. the coverage of the law, but I would like is, referring to retail and service estab­ Mr. KARSTEN. Mr. Chairman, I ask to see legislation passed that would fur­ lishments. unanimous consent to extend my re­ ther extend this coverage. The bill rep­ Mr. McCONNEJ .L. In other words, marks at this point in the RECORD. resents fair progress and while I would according to the Lesinski bill all types of The CHAIRMAN. Is there objection like to see the legislation go further than business, retail or service, large or small, to the request of the gentleman from it does, I am going to support the are exempt from coverage so far as an Missouri? measure. interstate and intrastate test is con­ There was no objection. Mr. RODINO. Mr. Chairman, I ask cerned. That is true. Mr. KARSTEN. Mr. Chairman, legis­ unanimous consent to extend my re­ I presume what the gentleman is try- lation to broaden the Fair Labor Stand­ marks at this point in the RECORD. - ing to make out is that this is objection­ ards Act and to increase the minimum­ The CHAIRMAN. Is there objection able to the retail .and service establish­ wage rate is long overdue: The original to the request of the gentleman from ments. They are not seeking to elimi­ law providing for a minimum wage of rew Jersey? nate the intrastate qualific::.tion section 40 cents per hour was passed over a There was no objection. of the present Fair Labor Standards Act decade ago. There have been practi­ Mr. RODINO. Mr. Chairman, I shall as it refers to retail ·or service establish­ cally no changes in the law since that vote for the 75-cent-minimum-wage bill ment exemption, and they are not mak­ time, except of a minor nature, and the because I believe elementary social jus­ ing their fight on that proposition. The law is badly out of date. tice requires this. Indeed it is incom­ real :fight is on the arbitrary ruling of the The committee bill, H. R. 5856, pro­ prehensible to me that we as a Nation Administrator, whereby a certain type vides for a 75-cent-minimum-wage rate, have delayed for so long in overhauling of selling or servicing is designated as thus bringing up to. date the long out­ the Fair Labor Standards Act and in nonretail. We have had a stream of moded 40-cent minimum wage rate es­ bringing it up to present-day standards. small-business people, retail and service tablished in 1938. It also provides for It is my conviction that no employer people, coal dealers, barber shops, laun­ broader child-labor coverage and takes whose operations are within the scope of dries, bakers, retail establishments of some forward steps in connection with Federal legislation should be permitted various other descriptions, all disturbed the act's exemption provisions. Cer­ to pay workers less than a subsistence because they are uncertain whether they tainly this bill represents the minimum wage. This is both sound ethics and are covered under the act. They do not improvement of the act that can be sup­ sound economics. The employer who do an interstate business. They are not ported by proponents of minimum fair persists in paying substandard wages is arguing that. The matter they are ar­ labor standards. forcing the community to bear a cost of guing is whether they are classified as The history of legislation of this type retailer or nonretailer under the act. shows that it must be improved as we what should properly be his basic cost Mr. JENSEN. Mr. Chairman, will the continue to progress. I was here when of production. No human b.eing can gentleman yield? the original law was passed and I recall support himself or herself. and maintain Mr. McCONNELL. I yield to the gen­ that many, at that time, opposed it. sound health and live under decent con­ tleman fron1 Iowa. Some said then that business could not ditions at a wage of less than 75 cents Mr. JENSEN. In the building-mate­ stand such a law and that it would drive an hour. Therefore, the worker who re­ rial industry without a doubt more than many industries out of business. Despite ceives less than this amount must obtain 11114 CONGRESSIONAL -RECORD-HOUSE . AUGUST ·9 some subsidy from charity. from rela­ What I am arguing for are proper safe­ cents an hour. As of June 30, 1949, the tive, or from some other source. Sweat­ guards which will protect established New Jersey State Employment Service shop wages are at the root of many of communities but which will at the same reports approximately 10,034 unem­ the social ills which local, State. and time protect inexperienced workers in ployed veterans in my district. This is Federal governments must spend mil­ places where hitherto there has been lit­ in part due to the shifting industry lions annually to correct or alleviate. tle industrial employment. This would from ·the North to the South. I say Although my advocacy of the 75-cent be the effect of a sound national mini­ this is a shame and a disgrace and that statutory wage and extended coverage of mum wage such as provided in the bill we must put an end to such conditions the Fair Labor Standards Act is based now before you. as quickly as we can reach a vote on primarily on humanitarian grounds, the Let me refer to another case of a tex­ this bill and as quickly as it can finally practical arguments for this long overdue tile mill which left my district about a be enacted into law. legislation are equally compelling. The year ago. One of the oldest woolen mills Mr. DOLLINGER. Mr. Chairman, I statistics regarding average wages paid in the United States, employing about ask unanimous consent to extenc my re­ to workers in industry make it abun­ 800 workers closed its doors and went marks at this point in the RECORD. dantly clear that only a very small group out of business. Those who know most The CHAIRMAN. · Is there objection of employers are paying less than 75 about why this company took this action to the request of the gentleman f roni cents today. It is clear. therefore, that are convinced the reason was that this New York? the fair employer, the concern that pays employer found it difficult to compete There was no objection. decent wages and wishes to continue to under present conditions in his indus­ Mr. DOLLINGER. Mr. Chairman, this do so, is jeopardized by those who pay try. Woolen mills are now opening up Congress· now has the responsibility of ·substandard wages. In a period when in the South, I am informed, and are deciding whether or not American work­ unemployment is increasing in certain paying rates. far below the established ers will receive wages ·which will ade­ areas of our economy the competitive rates in the North. No one in his right quately pay them for their labors and situation again becomes acute. If the mind will say to any manufacturer "You enable them to meet at least the mini­ rate is raised to at least 75 cents, the cannot move wherever you please"; nor mum costs of food, housing. clothing, competitive struggle will not be waged would anyone in his right mind argue and health. It is not conceivable that at the expense of the basic living stand­ that woolen mills cannot operate success­ anyone would wish to deny workers just ards of the working people in these con­ fully in the South. What I am arguing returns for their efforts-and it is our cerns. ·The fair employer wm have some for is a code of fair competition. The duty to help them achieve decent stand-· measure of protection against the unfair Government should set up certain stand­ ards of living. . concern. ards which would permit private ·Many bills to amend the Fair Labor Let me cite for a moment two situa- industry to exercise every bit of ingenui­ Standards Act of 1938 were introduced ions from my own district' which will ty, skill, and 'enterprise possible. But and considered by the Committee on Edu­ illustrate my general contention. For there should be a definite floor under cation and Labor. Taking living costs many years the oldest and largest thread wages below which no one can cut. The into consideration, I introduced H. R. company in this country operated in clever employer can always succeed with­ 1352 on January 13, 1949, providing for Newark. employing over 1,100 people. out taking advantage of his workers. a $1 minimum hourly . wag~ . . '.!'his wage, The concern, although, nonunion, paid The unfair employ.er will be prevented in my opinion, is stil~ not. adequate. the going wages in the northern section from going to such lengths in his treat­ H. R. 5856, now refore us, aithough a of the cotton-textile industry. Certainly ment of labor that both the individuals compromise, is a step in the right direc­ its wages were well above those that concerned and the. economy as a whole . tion, and I shall support it, inasmuch as would be required if the present legisla­ will suffer. I insist that far fewer plants it is the best bill that we could .get actio.n tion becomes law. About a year ago will close down in the North if a fair and on at this time. The bill provides for this concern closed down its Newark mill reasonable minimum wage law is speedi­ a minimum wage of 75 cents an hour. and moved to Georgia. It made no se­ ly written into law. Nor will this law in The Members of this House need not be cret of the fact that it did so that it could any way limit the expansion of any legiti­ reminded of the high cost of living at pay the lower wages prevailing in that mate industry which wants to build new present, and it must be conceded that it section of the South. I am informed plants or go into new territory. . is not possible to supply a family on less that this m;ll now pays rates from 20 Finally let me rr_ention that in my dis­ than that sum. This would provide only to 30 percent less than it was obligated trict there are thousands of veterans of the necessities of life-not luxuries. to pay in the North. both world wars. I am in close contact Those who receive less must do with­ Enactment of the pending legislation with these men and their families. A out proper foods and neces.sary medical would not require &. ·nanufacturer to pay large proportion of these ex-GI's had care for themselves and their children. the identical wages in the South that no real trade before they went into the Various budgets prepared by our gov.­ are paid in the North. What the law Army and some of them were either un­ ernmental departments show the need would .do, however, would be to substan­ able to get training after they were dis­ for a minimum of at least ·75 cents per tially narrow the wide wage differentials charged or did not see the necessity for hour-and in fact, the cost of a mini­ that have existed between various sec­ such preparation. The result is that a mum health and household budget is far tions of the country. The practical ef­ great many of these veterans are today in excess of this sum. fect of narrowing this competitive gap working at very low wage jobs. Many of We know, of course, that if the pur­ would be to slow up at least the migra­ them have been forced to take employ­ chasing power of the worker is not main­ tion of old-established plants from high­ ment in what can only be called sweat tained, business will suffer. If wages are wage sections to low-wage areas. If a shops. While my - district is no worse kept up, purchasing power will be kept manufacturer can legitimately achieve than any other and is better than most in up-there will be money to buy what is lower costs in one place as against anoth­ this respect, there are in every industrial ·produced, and production ci;in continue. er without taking unfair advantage of center some very low-wage concerns I repeat, a minimum wage of at least his workers no one can· object to that. right next to· places that pay standard 75 cents is necessary for our workers at type of migration. But as a practical rates. Do not run· away with the idea this time. They cannot exist decently on matter we know that in the consumer­ that low wages are only found in rural less, and to provide for less would be a goods industries at least that there will areas or in the southern i.. :irt of this betrayal of · the working people of be far less shifting about of established country. Unfortunately all of us have America. plants when this Congress enacts a statu­ some small pockets (_)f disgracefully bad While we are on the subject of assist­ wages in our own back yards. I have ing workers, we must not forget our tory wage of 75 cents per hour. This been made especially conscious of- this faithful postal workers and Federal em­ proposed legal minimum is fairly close to fact through my work with the veterans. ployees. We can hardly insist that pri­ the minimum which most of these indus­ I have found hundreds of these fine .vate industry meet its obligations with- tries, which tend to migrate, now volun­ young chaps now obliged to work at jobs . out recognizing our own. It ·is my hope tarily pay. which pay very much less than a living that we· will soon have the opportunity I am not arguing against the estab­ wage. Many of these men who risked to take care of these loyal employees. lishment of new industries in the under­ their lives for their country are now try­ The bill now bef ore us would provide industrialized sections of our country. ing to exist at jobs paying less than 75- protection to a gfeat petcentage of the

I 1949 CONGRESSIONAL RECORD-HOUSE 11115 hundreds of thousands of workers not considered that · a large number of per- · labor, and industrial homework in most now protected by.our fafr labor standards sons falling within this low-income cate·­ of the industries in which sweatshop laws. It would bring hundreds qf thou­ goi·y do not work a full 40-liour week. methods had prevailed. sands more under the protection of the Aside from being deprived of many of Passage of this act was bitterly op­ overtime provisions. Our . children are the things which we have come to regard posed by the Republicans in both Houses further protected under the child labor as the necessities of life, these people of Congress, but it was put through and provisions of the bill. If we are to lay a are unable to afford proper medical care 20,000,000 workers were brought under firm foundation for the future of this and the education of their children is its provisions. Nation, we must see to it that our chil­ neglected, both of which are so essential But the 40-cent minimum is today, and dren are not exploited, but are given the to the future of the community and the has been for some time, a. vestige of the opportunities of education and normal Nation. A rise in their income will re- past. Efforts to increase it have been childhood-the birthright of every . sult in improvement of their personal under way sir~ce 1944. · American. welfare and a more contented outlook on President Harry S. Truman in his com­ This House should pass H. R. 5856 life, which wm ·diminish whatever possi­ prehensive postwar policy message of without delay and without compromise. bilities there might be of thefr weaken­ September 6, 1945, called upon the Con­ However, I serve notice now that the pas­ ing to the propaganda against our form gress to amend the act, saying: sage of this bill will not solve our prob­ of government. I believe that the goal of a 40-cent min­ lem, and I shall continue to fight for the In the absence of an opportunity to imum was inadequate when established. It passage of my bill, which provides for a vote in favor· of a. dollar an hour mini­ has now become obsolete. Increase in the minimum wage of $1 per hour. We must mum wage, and in the interest of those cost of living since 1938 and changes in our raise the living standards of workers in persons whose living conditions are piti­ national wage structure require an im· • this country and this cannot be done un­ fully substandard, I consider it my obli­ mediate and substantial upward :i;evision of this minimum. less workers are paid a fair return .for gation to urge enactment of H~ R. 5856. their labors. Such progressive legislation is in keeping President Truman called also for the Mr. BARRETT of Pennsylvania. Mr. with the progress and development of extension of the act to give wider cover­ Chairman, I ask unanimous consent to our' great Nation. age. But there was no action. Again, in extend my· remarks at this point in the Mr. GRANAHAN. Mr. Chairman, I bis state of the Union message, of Janu-· RECORD. . ask unanimous consent to extend my re­ ary 14, 1946, the President expressed his The CHAIRMAN. Is there objection marks at this point in the RECORD. support for this legislation, declaring: to the request of the gentleman from The CHAIRMAN. Is there objection Lifting the basic minimum wage is neces• Pennsylvania? to the request of the gentleman from sary, it is justified as a matter of. simple There· was no objection. Pennsylvania? equity to the workers, and it will prove not Mr. BARRETT of Pennsylvania. Mr. . There was no objection. only feasible but also directly beneficial to Chairman, although several Members Mr. . G:RANAHAN. Mr. Chairman, I the Nation's employers. have already outlined in detail the back-· favor the passage of H. R. 5856, the new The issue came to a vote in the Senate ground and coverage of H. R. 5856, there Lesinski bill to amend the Fair Labor in April 1946, but was confused by an are still many persons who are opposing Standards Act. It is not as liberal as amendment to include the cost of farm this measure on the theory of minimum H. R. 3190, the bill originally reported by labor in the parity formula for the cal­ wage legislation. The arguments being the Committee on Education and Labor. culation of farm support prices. In the given against a 75-cent minimum wage This substitute measure is not wholly House no action was taken. today are practically identical with those satisfactory to the friends of labor. It is President Truman has continued ever given by the opponents of a 40-cent min­ relatively a moderate measure, but it is . since to press for an increase in the mini .. imum wage in 1938. The intervening probably the best we .can hope to get at mum wage-in his state of the Union years have proved that the establish­ this time. Certainly, however, we cannot message in 1947, in his message approv .. ment of a minimum wage did not cause accept anything less than this, which is, ing the Portal-to-Portal Act in May of unemployment and did not wreck Ameri­ in effect, a compromise bill-and we that year, and again in his state of can industry, as predicted by the oppo­ should certainly not adjourn this session the ·Un~on message last_ year, and still nents. After considering the number of of Congress without passing this bill. again this year following his election to workers who are already above the 75- The opposition to increasing the mini­ a full term of office. cent minimum proposed by H. R. 5856 and mum-wage provisions of the Fair Labor By the majority vote which put Prest .. the number of persons who are exempt Standards Act and to extending its cov­ dent Truman in office and restored Dem­ from its coverage, there are only ap­ erage comes from the same sources ocratic majorities to both branches of proximately one and a half million which fought the housing bill, which the Congress, the people of the United workers who will be affected by this leg­ fought extension of rent control, and States plainly indicated that approval of islation. which has opposed every program for the program which calls for this reform. To me it seems superfiuous to debate the progress and welfare of the average Let us perform our duty and pass this the need for a 75-cent minimum wage citizen. bill. and to point out the inadequacies of the It might be well to recall the origins Mr. LUCAS. Mr. Chairman, I ask present 40-cent minimum. I think it of "this legislation. In his message to unanimous consent to extend my re­ would be more in accordance with exist­ Congress on May 24, 1937, President marks at this point in the RECORD. ing economic conditions in the coun­ Franklin D. Roosevelt called for action The CHAIRMAN. Is there objection try to be considering a dollar per hour to establish minimum wages and maxi­ to the request of the gentleman from minimum wage. The increase in the cost mum hours. He said: Texas? of living since 1938, which is currently The time has arrived for us to take further There was no objection. given as 119 percent, is sufficient evidence action to extend the frontiers of social prog­ Mr. LUCAS. Mr. Chairman, my ress. Our Nation, so richly endowed with amendment has been attacked on two of the need for an increased minimum natural resources and with a capable and wage. But there are other facts which, industrious population, should be able to grounds. First, it is said that the amend­ when taken into consideration, make one devise ways and ·means of insuring to all our ment expands the present retail and realize the need for a higher minimum able-bodied working men and women a fair service establishment exemption, thus wage than proposed here today· and day's pay for a fair dayis work. A self-sup­ depriving many employees of the act's which make it difficult to understand the porting and self-respecting democracy can protection. The number so deprived is opposition to a figure of 75 cents. plead no justification for the existence of estimated by the Administrator to be The proposed 75-cent minimum child labor, no economic reason for chiseling about 50,000 employees. The Adminis· amounts to a weekly income of $30 per workers' wages or stretching workers' hours. trator gives no basis for this estimate 40-hour week before social security and The result was the Fair Labor Stand­ however, and in fact admits that it is other pay-roll deductions ar~ made. The ards Act of 19·38, establishing a minimum impossible to make such an estimate take-home pay of an individual with a straight-time hourly rate of 40 cents for with any degree of accuracy. $30 weekly .~alary often ·represents the all workers, requiring the payment of The Administrator concedes in his 1948 sole ·income for a family of four or five time-and-a-half for all hours over 40 a annual report to Congress that the su­ or more. There is also the fact to be week, outlawing all "oppressive'' child preme Court's decisions have virtually 11116 CONGRESSIONAL RECORD-HOUSE AUGUST 9 destroyed the exemption for all retail difficulties. I wish to say for my part perately and we inust not allow any and service establishments located in the that it is a great tribute to her, and she complicated arguments to stand in the rural communities and selling and serv­ deserves the gratitude .of all those 22,- way of that ·~asic human fact. ing farmers. He further concedes that 000,000 people she so valiantly assisted. I agree with the general economic ar­ such decisions cast considerable doubt I am opposed to any reduction below gument that we need a 75-cent minimum upon the application of the exemption the 75-cent minimum. It is not a ques­ to protect the wage structure against a to any retail or service establishment, tion of examining your consciences to downward spiral of wage cutting such as wherever located, making some sales to see whether the 75 cents is too much; it we saw in this country back in 1932. We business users. Since practically every is a question of examining your con­ need the 75-cent minimum to help keep retail or service establishment makes sciences to see whether the 75 cents an the income of this country at a high some such sales, this means that the hour is enough. I am satisfied that if · enough level to meet the expenses we status of all retail and service establish­ you proceed on that basis you cannot have in these troubled times to make ments is doubtful under the present ex­ help but come to the conclusion that the sure that thi.s country can be defended emption. My amendment clears up that 75-cents-an-hour minimum is still too in case the trouble gets worse. I will doubt by exempting the establishments low. leave it to others to discuss these im­ which are traditionally regarded as re­ I regret very much that the substitute portant economic questions. What I am tail. It is only in the sense that it clari­ Lesinski bill, H. R. 5856, does not carry talking about now and what I keep fies such doubt that my amendment can as much coverage as the original bill, thinking about is the million and ar half be regarded as e·xpanding the present H. R. 3190. What is needed is further workers who are supposedly protected exemption. ]3ut in a real sense it is not coverage, just as much as an increase by a Federal .law setting up a decent • expanding the exemption at all but in the minimum rate. However, as the minimum fair labor standards, and who simply confirming it for those establish­ gentleman from Pennsylvania preceding are today getting less than 75 cents an ments which the Congress always in­ me said, there were so many requests for hour. tended to exempt. The contrary view exemptions from the various districts I want no one to overlook the real must assume that in granting the· re­ and areas of the United States that the human need that this represents. I want tail and service establiShment exemp­ committee was plagued with requests for no one to think that it is a problem for tion, Congress intended to reject what is exemptions. It occurred to me as a someone else but not for him. I want traditionally recognized as a retail sale or member of that committee that everyone no one to think that such shamefully service in an industry and to adopt an was satisfied to have the minimum wage low wages are paid only to office boys. arbitrary concept of what is retailing or apply to everyone else except themselves. These million and a half workers work servicing. They wanted to be exempted: If we and try tc live in big cities as well as in The other charge against my amend­ exempt everyone who applied for an ex­ small towns. Workers who are covered ment has been that it would make the emption, I am afraid we would not have by law and are now getting less than 75 exemption difficult,' if not impossible, to much of a bill left. . cents an hour are trying to make ends apply, because years of litigation would I want to urge immediate enactment meet in Birmingham and in Chicago; yes, - be required to ascertain what is rec­ of the Lesinski bill, H. R. 5856, but I even in Philadelphia and Pittsburgh. As ognized as a retail·sale in various indus­ want to talk particularly about the rais­ to the office-boy argument, let us get rid tries. This charge is completely base­ ing of the minimum wage to 75 cents of that once and for all. There are not less. The Administrator, th'rough his which, to me, is the most important part that many office boys. Hundreds of thou­ 11 years of administration of the exist­ of the whole bill. Eleven years ago we sands of workers getting these shocking­ ing law, has come to know quite well passed the Fair Labor Standards Act of ly low wages are married men trying to what sales and services are recognized 1938. Under that law employers of any support families on what they earn. as retail in each particular industry. employees who are .engaged in commerce We should have raised the minimum Moreover each industry knows also what or in the production of goods for com­ wage in the Fair Labor Standards Act such sales and services are. Only in merce are required ·to pay those em­ long ago. We did not. We had better do the rare instance where the Administra­ ployee not less than 40 cents an hour. it now.· When three or four million tor and industry disagreed on this mat­ That was the law we passed in 1938. people looking for jobs start bidding for ter would a court test be required. In We hav~ bad a war since then. We those job wages go down. I wouldn't any event, no enforcement burden is have a war inflation and a postwar in­ want anything to add more workers and placed upon the Administrator. The flation. The cost of living has gone way more American families to the million employer claiming exemption would have up. The cost of food has more than and a half who are now so grossly under­ the burden of proving that at least 75 doubled. A man trying to support him­ paid. Instead we should right now see percent of his sales are recognized as self and his family on wages of less than to it that all of these million and a half retail in his industry. The problem is 75 cents an hour spends a much bigger workers get their wages raised to 75 cents the employer's and not the Administra­ share of his take-home pay on food than an hour, and we must do it by putting-it tor's. The latter, therefore, is in no po­ does the high-paid worker. Everyone in the law, so that their wage cannot sition to complain about the difficulty of knows how present-day prices hit the be cut. establishing whether particular sales are low-paid worker. Back in 1938 you could still get some cuts of meat for less The minimum has long since been ob­ recognized in the industry as retail. solete. Simple economic justice requires Mr. LESINSKI. Mr. Chairman, I yield than 20 cents a pound. You cannot touch them for less than 50 cents a that it be raised and that it be raised very 5 minutes to the gentleman from Penn­ promptly. I have great hopes that the sylvania [Mr. KELLEY]. pound now. With all of this, the mini­ mum in the law is still 40 cents. House of Representatives will pass this Mr. BEALL. Mr. Chairman, will the week a bill which will raise this mini­ gentleman yield? Nobody who was in favor of establish­ ing a decent minimum fair labor stand­ mum and otherwise improve the act. Mr. KELLEY. I yield to the gentle­ There are two major bills before the - man from Maryland. ards in a Federal law when it was being Mr. BEALL. Is it the gentleman's debated in 1938 thought that 40 cents House in its debate. One of these, intro. understanding· that restaurants and an hour would provide luxury, or com­ duced by the chairman of the House laundries doing a retail business are fort, or even a -decent minimum stand­ · Education and Labor Committee, will exempt under the bill? ard of living for an American worker. raise the minimum to 75 cents an hour . Mr. KELLEY. That is my under­ We thought we should at least give him That minimum will do little more than standing. that much rock-bottom protection. The adjust for the increases in the cost of Mr. Chairman, one cannot approach law is still on the books, but it gives him living since the act was originally passed, a discussion or amendment to the Fair no protection whatever now, and it will considering that costs have risen more Labor Standards Act without thinking not give him any protection unless it is for the low-paid workers. Even so, a of the former chairman of the House changed to say that his employer must million and a half workers at the bot­ Labor Committee, the gentlewoman from pay him not less than 75 cents an hour. tom of the wage ladder of workers covered New Jersey [Mrs. NORTON]. It was she All that this will do is to give him back by the act will benefit from this modest who sponsored and piloted the original about the same kind of protection he had minimum, this long overdue minimum of bi1l through the House under very severe before. He needs this protection des- 75 cents which will again put meaning 1949 CONGRESSIONAL RECORD-HOUSE 11117 into the purpose of the act: "the main­ Mr. McCONNELL. Mr. Chairman, I a minimum wage in one part of Ameri­ tenance ·of the minimum standard of yield 10 minutes to the gentleman from can agriculture. Did you know that? - living necessary for health, efficiency and Wisconsin [Mr. MURRAY]. Pretty nearly everyone here voted for it, general well-being of workers." In the Mr. MURRAY of Wisconsin. Mr. too, and that is the sad part of it, be­ weeks of testimony before the commit­ Chairman, it may seem peculiar that one cause that is what you voted for in the tee, no single witness asserted that a who comes from an agricultural State Sugar Act. What does the Sugar Act lower minimum would be adequate for would have the temerity to ask for time provide? The Sugar Act provides that these purposes, and there was a great to speak on this bill. May I call your the Secretary of Agriculture-now, re­ deal of data showing that even 75 cents attention to the fact that out in Wiscon­ member, this is not some black Republi­ was all too low. sin there is a lot of this New Deal stuff can who cuts the ears off little children There is an opposition bill introduced which does not mean very much to us and does a lot of bad things-this is a by Representative WINGATE H. LUCAS, of because,. if you will look up the record member of the President's Cabinet­ Texas, which would merely raise the you will see that we had unemployment then has the authority to fix minimum minimum of 65 cents an hour, less than insurance and other labor legislation wages. The Sugar Act provides that the the rise in the cost· of living to mod­ passed long before anyone ever heard Secretary of Agriculture has carte erate-income families in large cities about it here. blanche authority under the law to fix would require, and even more woefully The reason I ask for this ti'me is to say this minimum wage. inadequate for the changes in living costs that I hope we pass a bill this time so So when they tell you that the sugar of the low-paid workers. This proposal, that when a 'Member of Congress writes people in the State of Louisiana is able I might add, is no higher than the Sen­ to the Department to find out who is to get out from under the Lesinski bill ate voted in 1946, it is the same as the covered and who is not covered he will be they are not giving you all the facts, be­ House Labor Committee voted to report able to find out. That is something I cause the facts are that they are already out in the spring of 1946. Since that have been unable to find out in the 10 out from under i~ because the Secretary time the cost of living has increased by years that I have been a Member of Con­ of Agriculture, having this carte blanche alm~st one-third, but the Lucas bill gives gress. That situation obtains in most authority provided in the Sugar Act, said no consideration to this important fact. cases. that the minimum wage for Louisiana As a result, the Lucas bill would benefit Last week I was very much distressed should be set at 32 cents an hour to 39 less than half a 'llillion workers, and to see my colleagues who are particularly cents an hour. Everyone knows about these very little, since the workers who interested in minimum~wage legislation these DP's. They had about 300 of them, get less than 65 cents an hour generally vote against the Gore bill. The Gore and half of them have evaporated; they earn just below that figure. This is the bill provides a 50-60-cents-per-hour la­ cannot find them. They heard about contrast I want you to understand. The bor return to the producers of foods a: 1 what wonderful opportunities they were House this week will either support the fibers in our country. This is a 19- going to have in the United States and Lesinski bill with a 75-cent minimum year study and you can find it in the when they got down in the sugar fields directly benefiting a million and a half Appendix of the June 8 RECORD. This they did not like it, so they just disap­ workers, and indirectly benefiting other study indicates a 50-60-cents-an-hour peared. I do not know whether they workers by placing a realistic floor under labor return. The exact hourly return have found them yet or not. wages. Or it will support the Lucas sub­ depends on the weather and a number The Secretary of Agriculture, a mem­ stitute, a poor substitute, which will of other factors. But over these 19 years ber of the President's Cabinet, the party hardly help anyb.ociy, which has a 65- it provides the producer an average of who speak so often of minimum-wage cent minimum set at a figure too low to between 50 and 60 cents an hour for legislation, also goes down to Florida and prevent. a disastrous beginning to a cycle labor. I could not understand why so gives them 45 cents an hour minimum of wage ·and price cutting should depres­ many people were opposed to the farmers waoge. The question is, If a member of sion set in. Even that low minimum, r getting that much for producing the food President's Cabinet has authority to say might add, is not a firm, solid floor, but and fiber for this Nation. what the minimum wage should be, why a rubber floor, which would sag with Let us stop and look at the year 1939. did they not make it 75 cents an hour?· every drop in the cost of living. That is the seventh year of the more It is a little better than 75 cents an hour Even this is not the whole story. By abundant life. The figures show for dif­ in the Hawaiian Islands. Out in Cali­ chipping here, and by gouging there, ferent types of farms-16 cents an hour, fornia and Colorado it is 60 and 65 cents the Lucas bill would deprive the benefits 14 cents an hour, 32 cents an hour, 18 an hour. Sugar from California and of the act to more than a million workers cents, 17, 17, 30, 21, 22, 7, 35, 25, 24, 21, Colorado must be just as sweet as sugar now covered by its provisions. By con­ and 21. Now, that is what happened in from the 25-to-45-cent-per-hour area. trast, the Lesinski Act would extend the the seventh year of the more abundant I am just talking about the field work. protection of the act's minimum-wage life, so far as the labor returns to the I am not talking about the folks in the provisions to more than a hundred thou­ farmers of this country are concerned. factories. So the question is, Here is a sand worke-s not now covered, and would There is not anyone who can dispute that member of the President's Cabinet, not give overtime protection to about 700,000 fact because these figures are from the any black Republican that cuts off chil­ more workers. BAE and this is their study. If there is dren's ears, but here they are, with carte Unfortunately, I do not have time to anybody who believes that 90 percent of blanche authority, and they go down to go into detail concerning the many other parity gives the farmers any more than Puerto Rico, and what do they do? They ways in wbtch the Lesinski bill is a better 50 to 60 cents an hour, I can tell him figure that 29 cents an hour is enough bill than the Lucas bill, but I do want a good way to prove it to himself. Just for the Puerto Ricans. to memion a few. The Lucas bill gives go out and buy a f~rm, pay 50 cents an Is that how much they are interested many new protections to the chiseling hour and then sell your product for today in minimum wages? I hope not. employer, while the :Gesinski bill would 90 percent of parity and see how you Then they go to the Virgin Islands and strengthen the administration of the act, come out at the end of the year. If you they figure that Puerto Rico's 29 cents is b~r making it possible for both employers study this Dr. Wiley report you will note too much and they give them 25 cents r.~ 1d employees to know exactly where that the labor return was over $4 in the an hour. -It is in the official letter in they stand and by assuring that wages Southwest in 1948. But you must re­ the May 20, 1949, RECORD. Congress intends should be paid shall in member that wheat was more than So I do not want to be kidded too much parity and the crop was above normal. fact be paid t.o workers protected by the in connection with this wage-hour legis­ act. That is No. 1. The Lesinski bill is the better bill for No. 2: I have heard much talk around lation. protecting children from oppressive child here in the past few days about the I happen to come from a State where labor. It is the better bill in protecting State of Louisiana. I have heard folks labor has had recognition for years and the overtime standards. And above all, saying how we bad Republicans-black years. The labor legislation in Wiscon­ to return to my first point, it is by far the Republicans-are against all these sin was enacted under Republican ad­ ·better bill in establishing a decent, realis­ things. I just wonder how many people ministrations, too. Occasionally some tic floor under wages, which will directly ever checked up and found out that we outside fellow comes in and tells us how benefit many workers and will help all already have a law which gives the Sec­ bad we Republicans are, but we do not of us by stabilizing our economy. retary of Agriculture the authority to fix find all these controversies that you have. 11118 CONGRESSIONAL RECORD-HOUSE AUGUST 9 Our State is pretty well divided indus- Mr. MURRAY of Wisconsin. I yield. or both. Has it reached the point that. - trially and agriculturally, as far as busi­ Mr. McCARTHY. The gentleman this House is going to delegate that kind ness is concerned. In that State you do raised a question as to those who voted of power to an administrator of an act not find anybody who is antilabor in against the Gore bill. of this kind? Who has gone so far any political office that stays there very Mr. MURRAY of Wisconsin. I said I afield as he has in the past? Just think long. You will say probably that one rea­ was much surprised the ether day to see of it, that one mar. could make a regu­ son is because the State's economy is them vote against the Gore bill knowing lation or an order and that you would based on the dairy industry. Anyone that it provided only 50 to 60 cents an be subject to a fine of $10,000 and im­ knows that if you are going to buy dairy hour minimum wage. prisonment in jail for 6 months or both. products you have to have good wages Mr. McCARTHY. It was a sliding And that is the Lesinski bill. or you.will not be able to buy them. That scale. Was it by accident that it simply over­ may be one of the reasons why funda­ Mr. MURRAY of Wisconsin. No. looked the retroactive provision that we mentally you will find Wisconsin right There was no slide to it for 90 percent of put in the overtime-on-overtime bill? out in front. If forward-looking laws American agriculture. But as the Lesinski bill now is that will do not work out satisfactorily, we get rid Mr. LESINSKI. Mr. Chairman, I yield be brushed off, and that is out of the of them. We even had an OPA in 1930. 5 minutes to the gentleman from North picture. Probably that is one reason why we did Carolina [Mr. BARDEN]. Was it by accident that in this Lesin­ not like it in 1940. We put people in Mr. BARDEN. Mr. Chairman, I want ski bill the statute of limitations was jail because they sold too much milk for to vote for a reasonable, fair, minimum wiped uut? As the Lesinski bill stands the money. It did not take them very wage law; I would prefer its being 65 now the administrator, the Secretary of long to ret rid of that law and they did cents an hour because I sincerely believe Labor, can bring lawsuits clear back not think much of the OPA in the forties a higher rate would not be good for the to 1938 when we wrote clearly a 2-year either. economy of the section from which I statute of limitations in the original law. If this minimum-wage legislation is a come. I do not impugn the motives Was it by accident that that provision good piece of legislation, I would like to of anyone who thinks otherwise. I do was put in this bill? Of course it was know why there is not more people not wish to hear again on this floor the not by accident. What else do you find blanketed under it. Our colleague, the statement that money has been sent to in the Lesinski bill? gentleman from Texas [Mr. BECKWORTH] the South and because of that we ought You will find other provisions where made a fine contribution the other day. to vote a certain way whether we think the power of the Administrator is so ex­ He did not get a very good reception on that way or not. I simply repeat that panded, and I do not fear so much the the floor, but if something is not·done in the amount of dollars that may have coverage as I do the unlimited power of connection with a minimum wage for been sent or is to be sent will not have, one man. I say to you that no one man labor as it relates to agriculture, you will nor have they had, in my opinion, any should have the power that is granted in effect whatever upon the formulation or find that in a few yea.rs' time we are go­ the Lesinski bill-to impose so much ing to have a few hundred wheat grow­ the changing of the conscientious opin­ ers in the United States and a few hun­ ions and convictions of the men from penalty. If he is a ·good man he should dred cotton growers in the United States, that section. not want it; if he is a bad man he should and so on down the line. One wheat I do not wish to malign anybody for not have that power in this great country grower produces 500,000 to €00,000 bush­ participating in the writing of this of ours. · els a year and he had already had a sub­ Lesinski bill; I simply want to remind The Lesinski bill has removed the ex­ sidy of over $250,000. The gentleman the membership of the House again that emption granted the menhaden fisher­ from Texas [Mr. BECKWORTH] wanted neither of these bills are committee bills; men as it was written in the original to put in an amendment to let the little neither of these bills have been consid­ law. Just why, I do not know, for it fellow raise four bales of cotton. He did ered by the committee, not 1 minut,e. · should be carried forward regardless of not get much support on that. ·But stop Neither of the bills have been approved which bill is adopted. · and think about it. If we do not provide by a majority pf the committee-- Another "bug" in the Lesinski bill, and some kind of a program to give the little Mr. BAILEY. Mr. Chairman, will the I think one of the worst ones is the sec­ fell ow some chance -to stay in business, gentleman yield? tion that authorizes the Administrator to he will be put out of business. If you Mr. BARDEN. If the gentleman will bring suits for the recovery of wages, have a set-up whereby you are not going get me more time. The gentleman does and so forth. This would mean probably to give any protection to the man who not want to deny what I say, does he? Mr. BAILEY. Yes; I do. a thousand lawyers to worry every busi­ works on this land, as far as a minimum nessman in the country. This provision, wage is concerned, when we can protect Mr. BARDEN. Then, I will yield. the man who owns the land, as we did Mr. BAILEY. Four-fifths of the bill together with others, is why I think the last week, with a minimum wage-not H. R. 5853- Lucas bill preferable. only a minimum wage but we also pro­ Mr. BARDEN. I am not talking about The CHAIRMAN. The time of the vided him a job at 50 or 60 cents an four-fifths of the bill; I am not talking gentleman from North Carolina has ex­ hour-I say to you that we have some about nine-tenths of the bill; I am talk­ pired. responsibility, our Government has a re­ ing about the bill. Mr. O'SULLIVAN. Mr. Chairman, I sponsibility, to see that the man who Mr. BAILEY. Four-fifths-- ask unanimous consent to extend my re­ does the work has somewhere near com­ Mr. BARDEN. I do not yield further. marks at this point in the RECORD. parable support for the labor he does I want to call to yoµr attention some The CHAIRMAN. Is there objectfon on those farms. Mr. Hugh Mitchell, of of the "bugs,'' and I repeat that nejt.her to the request of the gentleman from the farm-labor section of the AFL, is one of these bills are committee bills, and Nebraska? of the most constructive labor men I have the gentleman from West Virginia knows There was no cbjection. met in Washington. it. Now, I want to call to your atten­ Mr. O'SULLIVAN. Mr. Chairman, I But I just believe the time has come tion some real "bugs" in this bill that you support heartily, with a few prospective when we have to meet that problem. We had better be thinking about. The most slight amendments, the Lesinski bill, are going to say, "Well, the farmers do important thing in this bill is not the 65- H. R. 5856, but I do think that it should not want to come under it and we will or 75-cent rate, because the amount in have included workers from all sections not put them under it." The time is either bill can be changed, but it is the coming when we had better broaden the internal part of the bill that you must of the country, and all occupations, ex­ base for minimum wages or take it off consider and amend. cept agriculture. As you all know, this type of legisla­ the books altogether. I for one ~m will­ On pages 27 a_nd 28 you will find the ing to stand up and be counted to widest rule-making regulation and order­ tion is not new in the United States at broaden the base froni one end to the making power ever granted to anybody all. In fact already it is an indispens_able other, because if it has merit to it, it has in the halls of this Congress. And what fixture in our national . labor life, but merit for the many as well as for the does it carry with it? The violation of at this time it needs a little progressive few. any regulation, or order, or interpreta­ overhauling, but not an overhauling of Mr. McCARTHY. Mr. Chairman, will tion by the Administrator carries a fine of the retrogressive type, as is contemplated the-gentleman yield? $10,000 and imprisonment for 6 months, by certain reactionary Republicans and 1949 CONGRESSIONAL RECORD-HOUSE 11119 Democrats, who are wont to cast sheep's­ Mrs. WOODHOUf'E. Mr. Chairman, I iness did not go bankrupt. Exactly the eyes in the general direction of the "busi­ ask unanimous consent to extend my re­ contrary happened. ness high and mighty," and eyes of scorn marks at this point in the RECORD. A flexible minimum wage rising and at the unheralded humble folks. The CHAIRMAN. Is there objection falling within the fixed limits, in the Lest we forget, i say that national to the request of the gentlewoman from proposal of H. R. 5894-Lucas· bill-50 minimum-wage laws are so very neces­ Connecticut? cents to 65 cents, may at first sight seem sary in order to protect that class of There was no objection. very reasonable. But it is first, not in workers in the lower wage scale brackets Mrs. WOODHOUSE. Mr. Chairman, accord with traditional American phi­ who are engaged in work tasks involving the principle of a national minimum losophy and practices and second, it interstate commerce, or who are produc­ wage covering workers engaged in inter­ would make for serious difilculties in ad- ing or working upon goods, wares, and state commerce or in the production of ministration. · merchandise which are to be sold and goods for interstate commerce including A flexible minimum changed annually may find their way into interstate com­ any occupation or process necessary to would make for uncertainty for both em­ merce. These classes of wage earners such production unless specifically ex­ ployer and employee. Yet today both usually are not organized and conse­ empt, has been accepted since 1938. That American business and American labor quently they have no unions to speak principle is not under discussion here. are seeking stability and a stable pro­ for them, to bargain for them, or to The inadequacy of the 40-cents-an-hour gressing economy is most definitely the protect them against nearsighted, gold­ minimum is also generally accepted. goal of the present administration and of locked, bad-employer vision. The question. is to what f\gure should it most of the legislation touching on indus­ Under the present minimum-wage law, be raised-75 cents or 65 cents-and trial life introduced into this Congress. 1,500,000 persons were covered at a mini­ should it be a fixed statutory minimum A minimum wage tied to the cost of living mum wage of 40 cents per hour. Under or a flexible minimum adjusted annual­ would go down with any reduction in the the Lesinski bill 900,000 more persons ly-but never allow 50 cents an hour-in cost of living. If the minimum wage goes would be added and the minimum wage accordance with the Bureau .,,of Labor down even a few cents this would look would be 75 cents per hour. Statistics Consumer Price Index. like Government approval of a wage cut The strong Government right arm A 75-cents-an-hour statutory mini­ and employers who might not otherwise must be flexed and poised always, and, mum wage is a bare cost of living adjust­ reduce wages would be encouraged to do if need there be, placed with real pur­ ment of the 40-cent minimum of 1938. It so. pose and authority upon employer men is a mere subsistence wage. Remember Though we have had many years of and employer institutions who put greed it is a minimum wage for adult men. Yet experience with State minimum wage for earthly riches above ideas that all minimum budgets for employed single laws it is worth noting that no State has labor is entitled to that fair and just women living alone prepared over the experimented with a minimum tied to wage which moral decency dictates last 18 months by State labor depart­ the cost of living. It serves rather riSky should be paid, not only in the interests ments are for Washington $2,231 a year, to experiment first on a nationwide scale. of the workers and their dependents, but California February 1949, for a family of want it to be remembered, not that I ployment and make it possible for busi­ four, in the lowest-cost city, New Orleans, opposed the minimum wage proposed by ness to continue to make profits. It is $3,019 and in the highest-cost city, Seat­ Mr. LESINSKI, but that I favored rais­ unfortunate that too many of us look at tle, $3,57.9. The average for 18 cities was ing the minimum wage to 65 cents, which the profits of this month and forget the $3,300, or on the assumption of 2,000 is the very highest that our people can question of profits of next year. hours of work, about $1.66 per hour. stand. It is not going to be much con­ We have done a remarkable engineer­ Even the WPA emergency budget, solation to you when you get home to be ing job of producing goods. The time which is far below the standard of living able to say to a worker that you helped has come when we must do as effective prescribed in this act, would cost $1.08 raise his minimum if you are to be con­ a job in distributing them in such a way per hour in January 1949, on the assump- · fronted with a question from others as to maintain our high level of produc­ tion of 2,000 hours of work per year. thrown out of employment by an inordi­ tion. To this end we must maintain pur­ The cost of the minimum health and nately high minimum wage ''Why did chasing power. Production capacity of decency budget for employed women liv­ Congress do it?" I am predicating my . our manufacturing industries has in­ ing alone which has been priced by seven case upon this proposition that· if yc:iu creased by more than 50 percent sip.ce State departments of labor since the be­ raise the wage beyond 65 cents, you are 1939. These goods must be sold if these ginning of 1947 is now well over 80 cents throwing elements of instability into : plants _are to operate at full capacity. an hour and ranges in some States over many ·phases of our economic life. I am The lninimum wage of 1938 must be $1 per hour. Persons employed ·at the not confining it altogether to the South, brought into iine with 1949, and 75 cents minimum wage are ·persons of all ages, ·though I am more familiar with that. is the lowest statutory minimum wage we men and women, with varying family re­ Hear· me on this point. The great' dif­ should enact. sponsibilities. ferentials are not so much between Chi­ Mr. LESINSKI. Mr. Chairman, I The rise in the cost of consumer goods cago and Little Rock as they are between yield 5 minutes to the gentleman from. purchased by wage earners from January Little Rock and some town in western New Jersey [Mr. HOWELL]. 1941 to January 1949 as measured by 'the Arkansas and between Chicago and Mr. HOWELL. Mr. Chairman, the WPA emergency budget has been 93 per­ southern Illinois where the costs of liv­ Committee on Education and Labor, cent, which in itself justifies a minimum ·ing are lower. after lengthy hearings, during which. all of 77.2 cents.per hour. In an effort to meet the problem I went points of view were freely expressed, and National income was $67,400,000,000 in ·before the Committee on Labor and Edu­ after further long consideration in. ex­ 1938. In 1949 it has risen to $224,000,- cation thinking that I had something _ecutive session, produced H. R. 3190, 000,000 or 233 percent. Productivity has that might appear to them to be a con­ which attempted to meet valid objec­ risen considerably as indicated by the structive suggestion. In view of the great tions to the original committee bill in­ fact that the gross national product (in readjustment through which we now troduced by our chairman. It became current dollars) per employed person has move, a price readjustment, it seemed to rather obvious that the bill would prob­ risen from $1,916 in 1938 to $4,254 in 1948, me that it would be wise to provide some ably be deteated in the House, and I or 121 percent. kind of · storm cellar. I do not know believe all of you realize that H. R. 5856 Organized workers have shared in what the wage ought to be; nobody 'represents a furtber compromise which varying degrees in these rises. Their knows as a scientific fact what the mini­ I feel is as far as we are justified in bargaining power has been sufficient to mum ought to be. But, if we set it too going, if we are to. produce legislation wrest from reluctant employers some high and are wrong, then a fiexible wage of any real value and effect. measure of the benefits, but many work­ that provides that it may be reduced pro­ Any reduction of the 75-cent minimum ers in unorganized· industries, particu­ vides insurance against a collapse, and provided in H. R. 5856 would, in my larly those in which earnings. are below that is the only purpose of the flexibility opinion, make passage of this legislation 75 cents, are still not enjoying the bene­ feature. If we are wrong, if we fix it at a meaningless gesture. fits of this rise. 75 cents, and a terrific decline in the price I urge the universal '15-cent minimum, The 75-cent rate is being offered as a structure causes unemployment, then not because I believe this amount will fioor and an absolute fall-back rate for we have a readjustment again and the provide a genuinely adequate living wage the national economy, to prevent a minimum is lowered, you have saved his but as a step forward to the eradication downward spiral, which those who sup­ job, and the business. of the worst forms of underpayment port the lower and flexible minimum Nobody has spoken to this point yet, discrimination · and exploitation of the seem to seek to encourage, and believe is nobody has told us just what the mini­ bargaining weaknesses of American inevitable. mum wage ought to be scientifically, but workers. I appeal for your support of the 75-cent I think I have some figures that will I urge the 75-cent statutory rate as rate, if passage of this bill is to be a real throw some light on that and, inciden­ a means of improving the lot of some accomplishment. tally, I inserted figures in yesterday's 1,250,000 workers now covered by the Mr. McCONNELL. Mr. Chairman, I RECORD at page 11234, which I think will act who suffer from these exceptionally yield 5 minutes to the gentleman from be helpful. low wages. The 75-cent minimum pro­ Arkansas £Mr. HAYS]. First take the relationships of 1938, vides a wage floor to which no employer Mr. HAYS of Arkansas. Mr. Chair­ when the law was first adopted, and then can truly and properly object. Those man, a friend related to me the other take the increase in the cost of living and employers who exploit the helplessness day a conversation he had overheard. apply it to the 25-cent minimum, and you of wnrker.s by paying them intolerable Some one said, "How can Mr. HAYS aban- come up with 42.7. That is what it 1949 CONGRESSIONAL RECORD-HOUSE . 11121 would be. That is a very low minimum. violation of the wage-and-hour law in effect, they were treated as the subject I do not think this Congress could justify the past was not subject to action for of legislating a minimum of income for raising the rate only 3 cents, but that is recovery now. Now, I opposed it on the the people of this country. To be sure what you would have. But we got a 40- floor, but you folks settled it. I think we were in a recession or depression, but cent minimum in July 1944 through ac­ it should not be reopened. It was said we were on the upgrade and coming out tion of the industry committees. We here on the floor a moment ago that of it, and still 25 cents was the mfnimum. . finally reached that goal and it was under this bill the retroactive provisions Then politically it went· to 30 cents. a good goal. We needed it terribly in that we enacted in H. R. 858 would be Then politically it went to 40 cents. Arkansas. Forty-four percent of all the revived. That is not true at all. That Never, never to date has this Congress employees in the Nation's lumber indus­ is an error upon the part of any Member had the courage to make that minimum try were getting less than 40 cents an who says so, because the retroactive pro­ wage contact the economy of this coun­ hour when it was put into operation. visions were in section 2, which were not try in any part of it. Never has it had I think it is a tribute to the lumber indus­ amendments to the Fair Labor Stand­ the courage. Now, today, for the first try that they cooperated in raising it, ards Act at all. They are part of the time, we hear reports that a segment of although it meant realL: .istment. We law, and if we included a retroactive our country interested in a certain in­ were in an expanding economy. provision in this bill, it would appear dustry wants to make that minimum If ; ·ou take that relationship in July twice in the statutes. wage high enough to contact the econ­ 1944 and apply it to your present condi­ Mr. LUCAS. Mr. Chairman, will the omy of another part of our country which tion, you come up with an interesting gentleman yield? has a lower cost of living. This effort is figure, 54 cents and a decimal point, . Mr. JACOBS. I yield to the gentle- made by industry not to raise the wages 54.40. I hate to abandon the defense of man for a question. · of employees, but in the hope of driving 54.40. I like to say "fifty-four-forty or Mr. LUCAS. Then why did the gen­ those wage earners' employers out of a fight," because that is your scientific min­ tleman put other _parts of the bill H. R. competitive field by making it a crime imum if you apply the relationships that 858 in his bill? for their employer to stay in business and existed in 1944. I think the scientific Mr. JACOBS. Oh, that is an easy pay them what he can afford to pay them. minimum can be defended, though, if question, and I am glad the gentleman In the bill there are two purposes that you go to 65 cents I think there is some asked it. The answer is because the have been expressed. One is to guaran­ justification for that. Increased pro­ first section of H. R. 858 was an amend­ tee a minimum cost of living to work­ ductiveness as well as increased costs ment to the Fair Labor Standards Act, ing people. None of us would oppose it. since 1938 might be invoked to support and we are enacting a completely new Our opinions differ when we try to pick it. law. Therefore, we incorporated the one figure as a minimum wage to cover Mr. LESINSKI. Mr. Chairman, I provisions of section 1. But section 2 the whole of the United States. Surely yield 5 minutes to the gentleman from is no part of the fair labor standards no one here will debate the fact. that Indiana [Mr. JACOBS]. law. It was wholly unnecessary to rein­ the minimum of food, shelter, and cloth­ Mr. JACOBS. Mr. Chairman, as I rise corporate section 2 of H. R. 858. If you ing in Washington costs much more than to address this body on the question of will read from the bill H. R. 1858, you it does in the South, or in Arizona, or in minimum-wage legislation I am not un­ will see that that is true. That is the parts of my State. When we arbitrarily mindful of the fact that I am addressing retroactive section, it is simply no part set a Nation-wide minimum wage, we a body that within the last few weeks of the law we are amending. know it is too low and ineffective in part raised executive salaries in the Govern­ There may be defects in this bill which of the country or so high as to force ment from $15,000 to $25,000 per year. we are considering here today. If there unemployment in other regions. So I hope we get substantially the same are, we want to correct them, but I ex­ much for the minimum wage. response from the same people who voted pect that, being the instrume~ntality of The justification given for the maxi­ upon that "legislation. human beings, there are enough defects mum-hours provisions of the law was In 5 minutes my remarks must of in it without conjuring up.more of them; that we were going to spread employ­ necessity be · general. Since there has claiming that there are defects which ment. By prohibiting employment over been so much searching of souls here do not, in fact, exist. 40 hours, except under penalty, the em­ I feel that I should like to turn an X-ray The question is asked by the gentle­ ployers would be inclined to employ more upon the soul of a plan that has been man from Wisconsin, Why did we not people, and spread employment. I am suggested. There is much talk about cover someone? Why, members of the interested in this bill in its entirety, and who should and who should not be Committee, as far as I am concerned, I I assure you I have given it my full at­ covered, and that is an important matter. would cover everybody under minimum tention for the time we have been able to I think the cat was let out of the bag wage legislation. I do not think $30 a have these two bills. Personally, I like here this morning when it was sug­ week is too much for any man to re­ the Lucas bill because it does not differ gested that possibly it would be well to ceive. I would. But the people who are so much from existing law, which I think cover only mining, tranS\Jortation, and now finding these fancied flaws in this is important when we are considering manufacturing businesses. Just who bill, such as I have just pointed out to amendment. I hope to say something on would benefit by it, in view of the well­ you, these people oppose the covering of that later. known fact that everyone engaged in the very people that many. of them are In connection with the State of Cali­ those industries already receive more now saying, "Why are they not cov­ fornia and its fruit-growing industry, than the minimum? ered?" That is why. there is one change in this bill that I Then were we being kidded on the The CHAIRMAN. The time of the want to call to your attention with re­ square when it was suggested that pos­ gentleman from Indiana has expired. spect to the canning industry, and only sibly the wise thing to do would be to Mr. McCONNELL. Mr. Chairman, I that part of the industry that processes make it $5 an hour and exempt every­ yield the balance of the time to the gen­ perishable, seasonal fruits and vegeta­ one, or was it what we lawyers refer tleman from California [Mr. WERDELJ. to as the res gestae, the facts speaking Mr. WERDEL. Mr. Chairman, I want bles. There has never been any con­ spontaneously through the speaker first to point out to the Committee that troversy about the fact that a maximum rather than the speaker narrating the there are two vital parts to the Fair workweek, and penalty for overtime, can­ facts. There have been a good many Labor Standards Act. The first one is not be applied and obtain the purpose things said about the Lesinski bill. I the subject of most of the discussion­ of the act. I am referring to the pur­ cannot answer all of them in 5 minutes, particularly by those supporting tJ ; pose of the penalty for overtime hours, but I can give you a typical example of bill-so far today. That deals with the which is to spread employment. The some of the objections to the validity of minimum wage. imposition of penalty overtime would not those objections. For example, a few There is another important part of the result in spreading work. It will not days ago we passed the bill H. R. 858. I act, far more vital to all of us through­ give more people employment. No one opposed that bill on the floor, but so far out the country and that is the maximum in the course of the hearings that were as I am concerned, this body has passed hours provision. n· is said, and I believe held on the original Fair Labor Stand­ upon it, and I do not think we should justifiably so, that this bill was originally ards Act, or at the many hear~ngs that debate the question again. That bill treated as a political measure. When have been since held on the proposals carried retroactive provisions so that a these minimum wages were first put into to amend the act, has disputed this. 11122 CONGRESSIONAL RECORD-HOUSE AUGUST 9 The issue has always been the extent Let us look at the economic facts of standard citizens. The 1940 c·ensus re­ to which Congress would attempt to ap­ our life today. What does food alone veals that 88.7 percent of the American ply the principle of spreading work in cost for a family of four? The recent Bu­ children were in families with average the business of processing fruits and reau of Labor Statistics study shows that ·incomes under $750 a year. The infant vegetables. Even though President in Birmingham, Ala.-a middle city, as ·sickness and mortality rates are high Green; of the A. F. of L.j the present Ad­ far as costs are concerned, in a group of among children in this group. The chil­ ministrator, Mr. McCombe, and his pred­ 34 cities-food for such a family in June dren who do survive lack, for the most ecessor, Mr. Metcalf Walling, admitted 1947 cost $1,057 a year, or over $20 a part, the training and background neces­ that penalty overtime hours would not week. The price rise of 7 percent by sary for good citizenship. spread work in the fruit and vegetable February 1948 has brought this sum to A nation cannot safely ignore these processing industry, Congress has sought $1,311; or · over $21.77 a week. The ·en­ · facts. A 75-cent minimum wage cannot to apply that principle. For political tire income of thousands of families in correct all these evils, but it would be an reasons it has refused to make the ad­ the United States today is less than $20 ·important protection against the worst mission that it cannot accomplish its a week. On such an income, a diet ade­ of them. Collectively, we have a respon­ express purpose when all witnesses before quate for health is out of the question. sibility to improve the social conditions its committee have made the admission. As would be expected, persons in the of which individuals are the helpless vic­ The question is, After how many hours lowest income groups suff.er from more tims and for which they are not to blame. · a day and how many hours a week should physical disabilities and longer illnesses Congress is the proper vehicle through penalty overtime be required, and for than do other citizens. The incidence which to secure action, and a revised how many weeks each year should free­ of sickness declines with rising incomes. minimum-wage law as an in,strument for dom from penalty overtime be allowed? For example, chronic illnesses were putting· the remedy into effect. I have only 2 minutes left and in this -found among 12.6 percent of the relief The- full cost of a worker's maintain- time I wish to have your attention. The families in 1936, among 9.6 percent of . ing himself should come out of industry, gentleman from North Carolina [Mr. the families with less than $1,000 income, just as industry is expected to pay for the BARDEN] has already told you about the and among 4.5 percent of the families cost, maintenance, and replacement of penalties under these bills, particularly with incomes of $3,000 or more. the machine which the worker operates. under the Lesinski bill. I wish in par­ The draft rejection rates during the Maintenance of the worker, as of the ticular to draw your attention to section war illustrate the relation between low machine, means keeping him in good 11. In conjunction with this read also income and physical disability. Rejec­ working condition, properly fed as the section 2, and in conjunction with that tion rates were highest for North Caro­ machine is properly fueled, skillfully turn over to page 35, which is section 15, lina, South Carolina, and Arkansas, three treated when ill as the machine is r~­ subsection 2, which reads: States that stood near or at the bottom paired when broken. But it also means To violate any of the provisions of section of the list of States according to per properly feeding, clothing, housing, and 6 or section 7 or any of the provisions of any capita income. educating his offspring sq that they in regulation or order of the Secretary issued Moreover, the life expectancy of in­ turn may effectively take their place in under section 11 (b) or section 14 is a dustrial workers is lower than that of criminal act. the industrial and economic pro-cesses of other groups. In 1946 it was 1.05 years ·the Nation. I am sure that there is no one in this shorter than for other members of our The realization of this basic principle hall who would like to delegate the pow­ society, Increase in incomes of workers means that the worker's wages must not ers that are stated in thos.e sections to during recent years accounts for a reduc­ only be Stich that he can buy the goods any one man. Remember that not just tion in the difference between the life ex­ and services necessary for his support the men making less than 75 cents are pectancy of workers and other economic and that of his family, but he must be covered by this act, as the majority groups (rom 6.5 years to 1.05. Work­ able, through taxes, to contr~bute to the leader has said, but every man iri organ­ ers on substandard wages cannot afford cost of educating his children, of protect:. ized labor whg is engaged in interstate adequate medical care. What is more, ing his home against fire, his person commerce is covered by this act. medical facilities often are not available against assault, and his property against If you believe in free collective bar­ to them. In States with the lowest per­ theft. gaining, if you believe that there was any capita income are to be found the small­ . To the extent to which the cost of ·his degree of sincerity in the administra­ est proportion of hospital beds per 1,000 support must come from private or pub­ tion's opposition to the Taft-Hartley Act, population, and the fewest doctors. The lic relief instead of from wages; to the read these paragraphs, then you see the financial incentive for doctors to locate extent to which he must rely on medical substitute for Government control, for in such communities is completely lack­ care for which he cannot pay and toward Government order and directive, not ing. The result is a higher mortality which he has not , contributed through only, if you please, for the little man but rate from tuberculosis, malaria, and sim­ taxes; to that extent his employer is here lies the rule-making power to de­ ilar diseases in States with the lowest being subsidized by taxpayers and pri­ stroy collective bargaining. per capita incomes. vate charities: Only after meeting the That was one of the issues before the Educational opportunities are limited full cost of maintaining its machines committee. It is now offered to you here and housing is poor for families of low­ and its workers is an industry or an without committee hearings. I ask that paid workers. Where the per capita in­ establishment entitled to profit. The you glve it your careful attention _so that come is lowest is to be f olind the highest c·onsumers pay for these costs in the · free collective bargaining cannot be in­ · proportion of population with no school­ · prices they pay for .commodities. It is terfered with in the absence of a nft­ ing at all or with the fewest school years quite unfair, therefore, that consumer s tional emergency. completed. The people who lack money should in addition pay a subs·ciy to in­ The CHAffiMAN. The time of the for proper food, for doctors, whose chil­ . dustry in the form of taxes to provide the gentleman from California has expired. dren are deprived of the opportunity for · necessities of life for its workers. A Mr. BIEMILLER. Mr. Chairman, I education, are the same as those who minimum-wage law would relieve the · ask unanimous consent to extend my re­ must live in the miserable houses de- taxpayer of at least a part of the burden marks at this point in the RECORD. . serted by their more fortunate neigh­ that is rightfully industry's obligation. The CHAIRMAN. Is there objection bors. Workers who suffer from malnutrition to the request of the gentleman from Children born and brought up in fami­ or inadequate food are poor produc~rs. Wisconsin? lies with substandard incomes are handi­ They are more frequently ill than others, There was no objection. capped from the beginning. They are and; therefore, more often absent from Mr. BIEMILLER. Mr. Chairman, this undernourished, and deprived of the op­ work. It is a recognized fact that per­ country cannot afford to tolerate sweat­ portunity for education and training sons tortured by poor health and finan­ shop wages, nor continue the ridiculously that would enable them to rise above the ciai worries .make poor accident risks, outdated 40 cent an hour statutory rate. economic level of their origin. At an become discouraged, and lose the power The direct and indirect costs of low early age they are pushed into factory or adequately to perform the · fun·ctions of wages are many times greater than would mill to help with the family support. their jobs. · be the cost of raising minimum wages to They marry young and become the pro­ . Finan~. let me drive home the point 75 cents per h,our. · genitors of the nex.t _generation of sub- that low-~age workers ~re not the least 1949 / CONGRESSIONAL RECORD-HOUSE 11123 competent workers. Thse receiving ret~iler as a direct-to-consumer sale. In with both the Lucas substitute and with less than 75 cents are often highly pro­ the trade such sales have always been the Lesinski bill, because certainly there ductive, industrious, and ambitious. But recognized as retail. I believe the chair­ is hardly any legislation that. will be pro­ they happen to have drifted into indus­ man of the House Committee on Educa­ posed in this Congress or any other that tries which are poorly managed, or the tion and Labo:r, who, I understand, is a is fraught with so much potential effect employer is so situated that he can sim­ retail lumber dealer himself, has very upon the American people, the American ply force his workers to take what they emphatically said these are retail sales. Government, and even· the world. are given. Many of the lowest-paid Since the bulk of the sales of this nature There are differences of opinion among workers are veterans of industry and go largely through contractors, it is es­ us as to the philosophy of minimum heads of families. It is one of the most sential that the term "resale" be clearly wages. There are some who sincerely thoroughly exploded ideas to say that defined. This Mr. LUCAS has satisfacto­ believe that the providing of a minimum­ people working in sweatshops are all rily done by his definition of "resale"­ wage level has nothing to do with the single and only work because they want namely "resale shall not include the sale economy of the country. My own con­ pin money. People who work for low of goods to be used in residential or farm ception is that while these wages are up, wages do so because there are no other building construction,. repair, or main­ unless we place a floor under them so as jobs elsewhere open to them, ·or because tenance." Another point shoutd be to permit their sagging under the impact of difficulties of travel or some other sim­ cleared up. There has been entirely too of temporary slumps in business, we will ilar circumstance. much confusion over the possible inter­ sink into a depression that will make the Hundreds C1f thousands of workers who pretation of a retail sale. Referring last one lcok like child's play. earn very low wages are highly skilled again to my own business, it has been Economists may philosophize about and are capable of exercising consider­ said that if a local druggist ordered a that all they please. I do not subscribe able initiative arid responsibility·. There 1 by rn pine board for a shelf in his to Lord Keynes' theory, which leaves me are no essential differences between those drug store, that sale could be considered about as cold as a dog's nose. About all who are obliged to work for· 40 cents or a nonretail sale since it went to the man's the. economics I learned I received from 50 cents an hour and those who are for­ place of business in industry. That same Adam Smith, and I did not learn too tunate enough to be able to get and hold 1 by' 10 board ordered by the druggist much from him, possibly because I was jobs paying a living wage. delivered to his home would be a retail more or less a dullard. I did learn, how­ Society owes these victims of our in­ sale. How ridiculous it all $eems, since ever, that there are two sources of wealth dustrial society a certain degree of equal­ this type of sale in the industry has al­ on earth-what God gives us in natural ity in regard to their basic wage stand­ ways been considel'.ed a retail sale. I am resources and what man adds to them by ard. We must not permit industry to sure every· Member ·of the House wants the labor of· his brain and .brawn. My become parasitic, as it inevitably does if these discrepancies cleared up. philosophy, then, along that line is it pays such low wages that the commu­ The establishment of a 65 cents mini­ simple~ nity must make up the deficit between mum hour rate, as provided in the Lucas I remember some facts, and I have what it costs to live and what the wage bill, also seems a better solution than. the been through some depressions in my earner is actually paid. 75 cents rigid provision in· the Lesinski day. One simple fact I remember is that Mr. LEFEVRE. Mr. Chairman, I ask bill. Heaven knows all the retailers I in no time of low prices have I seen a unanimous consent to extend my re­ have been talking about in our section happy people. marks at this point in the RECORD. of the country pay more than 75 cents In 1896, at the age of 7, I picked cotton The CHAIRMAN. Is there objection per hour today. However, we have to for 35 cents a hundred pounds and you to the request of the gentleman from look ahead. I do not care to be pessimis.:. could buy bacon for 7 cents a pound and l;-lew York? . tic but just suppose a real depression 50 pounds of flour for 40 cents. But There was no objection. should set in. Cutting the number of the people were not happy. In 1907 I Mr. !JEFEVRE. Mr. Chairman, I am employees would be about the first move worked in the sawmills in my section 10 thoroughly interested in having the defi­ the average small-business man would hours· a day for $1.25. You could buy nition of a retail establishment clarified. make in an effort to weather the storm. a pair of overalls for.60 cents and other I have favored the last bill introduced A wage rate connected with the consumer commodities in kind. But were the peo­ by Mr. LUCAS, H. R. 5894. It seems to price index, as determined by the Bureau ple happy? No. Back in the thirties me that everyone admits that the wage­ of Labor Statistics, would be the fair you could buy a beautiful piece of sliced hour-law was never intended to ·cover re­ method of handling this problem. Any bacon for 20 cents. But who had the 20 tail and service firms. Therefore, I see change would be geared to the cost of cents? The bread lines and the soup no reason why the Congress should have living. The 65 cents named in the Lucas kitchens in this country were feeding any objection to the spelling out of a bill is not a limitation on wages. It pro­ millions of our people who could not buy clear-cut definition, so we who are in the vides a floor . or wages of 65 cents per the surplus products that rotted in the retail business and interested in the wel­ hour to January 1 and thereafter the bins and the storage places of this fare of small business s!' ould not have minimum wage is to go up or down each Nation. any worries as to the interpretation of year in accordance with the cost-of-liv­ We have a $254,000,000,000 debt. Do the law by the Administrator, whomever ing index. we dare allow the purchasing power of he may be. Ladies and gentlemen, remember this the American people to sweep down? The present Fair Labor Standards Act legislation affects a large sector of our Yet we· are faced with a proposal in the was purely an experiment. If such a law population. This is not the time to put Lucas bill of tying the minimum wage is really necessary, it is up to us to im­ additional burdens on the retailers of onto the so-called living cost. Ylhat prove it, based on the retailers exper­ America when we all are trying to de­ happens? The living cost goes down. iences. As a retail dealer in building liver our wares and services at the least You lower tile wage. That being a big materials, including lumber, millwork, possible cost. element in the cost of a manufactured builders' hardware, paints, and so forth, Mr. LESINSKI. Mr. Chairman, I yield product, the living cost goes down and I can vouch for the fact that a sub­ 10 minutes to the gentleman from Texas the wage goes down, so you just start stantial part of our sales goes through [Mr. COMBS] . . digging down and down until you hit the the carpenter contractor, the painter, the Mr. COMBS. Mr. Chairman, we are bottom of 50 cents, or whatever else is mason, and the electrician. Except on approaching the close of general debate. provided. That is all there is to that. rare occasions the materials are taken · It will not be possible in the limited time Why a minimum wage at all? Because from stock and involve regular retail that we necessarily have in the allot­ in time of slack purchasing it is natural functions and services. There is no rea­ ments that are made to us to go into the that the manufacturer or the merchant son in tl).e world why such sales should details of the pending measure or the or the other man will want to move his be classified as resale sales. I feel posi­ substitute that wm be offered. product. So, in order to do .it, he wants tive that most of you, whether you were I want to discu~s in a general sort of to reduce the price, and with manufac­ building a new house, remodeling your fashion some of its main provisions, and tured commodities the labor cost is the present home, or making repairs, would when we get into consideration of the larger part of it. He begins then to make your arrangements through a con­ bill under the 5-minute rule, I hope it lower his labor. But his competitor has tractor and, therefore, the materials sold will be possible for the Members to re­ to lower his labor to meet it. So they would not be made direct to you from the main on the floor and become familiar start, and when they both get to the 11124 CONGRESSIONAL RECORD-HOUSE AUGUST 9 same labor level and the cost level, they (b) ... I said it carried a $10,000 fine and For example, the Lucas bill will leave are no better off than when they were 6 months in jail or both. Is that a cor­ no relief whatever to the merchants and up here. They both have to compete rect statement? The gentleman said I the service institutions along the border for the same market. So, I think the was incorrect. · lines of every State from Port Arthur to philosophy of the minimum wage is Mr. COMBS. That is like asking a Texarkana, or any other city of the sound, but I will not have time to go into man if he has quit whipping his wife. Nation located close to a State line. that. .The words the gentleman read there are Under the 5-minute rule I hope the I want to just make a few general ob­ correct, but this is the meaning. In the gentleman from Alabama [Mr. ELLIOTT] servations and then yield for questions, first place, those are the criminal penal­ will tell you about that. It will leave because I have never seen so much mis­ ties prescribed that a court may inflict them to be continually harrassed and information put out both in the cloak­ on the showing of willful violation. The sued. They will have to keep records on rooms and by the propaganda over the first one is not subject to jail penalty at every delivery across a State line to see wire inspired by the lobbyists that inf est all. whether it was 50 percent or not. Cer­ this city as I have seen concerning this Mr. BARDEN. Is the gentleman ad­ tainly, that is just one of many omissions. Lesinski bill. vocating leaving power in the Adminis­ Again we have exempted under that Now, that points up the first fact that trator to pass criminal laws and incar­ law these local-service institutions, such this is an exceedingly complicated field cerate and fine people for violating as laundries, restaurants, hotels, and of legislation. Statements innocently them? many other retail establishments. Why made here a while ago by my good friend, Mr. COMBS. When we get under the limit it to those who have not over 25 the gentleman from North Carolina [Mr. 5-minute rule we will get back on this percent of wholesale? In order to bar BARDEN], and by the fine gentleman from question. from lifting the coverage from those Pennsylvania over there are completely Mr. BARDEN. I would be glad to de­ large institutions that are engaged in beside the facts of the bill, because they bate the gentleman on it under a 30- wholesale operations in connection with do not understand it. minute rule. · textile mills and thousands of other big Mr. McCONNELL. Mr. Chairman, Mr. COMBS. I would be glad to de­ plants which to all intents and purposes will the gentleman yield? bate the gentlemarl,under the hour rule · are part of the larger plant. We have Mr. COMBS. I yield to the gentleman or any other rule. tried by careful language to make this from Pennsylvania. The CHAIRMAN. The time of the bill fair to the employer and employee Mr. McCONNELL. Will the gentle­ gentleman from Texas has expired. alike. Listen, my colleagues, too many man tell where I was incorrect? Mr. LESINSKI. Mr. Chairman, I laws have been passed that treated the Mr. COMBS. I understood the gentle­ yield the balance of the time to the gen­ employer as though he were to be singled man to say that there was a provision tleman from Texas. · out as some enemy of society. It is true in the bill that authorized the Secretary May I call the attention of the gentle­ that factories cannot operate without of Labor or the Administrator to prose­ man to the language on page 36: men to work in them, but there can be no cute and fine a man for violation of the No person shall be imprisoned under this factories for men to work in unless other rules. subsection except for an offense committed men put their money into the factories Mr. McCONNELL. I made no such after the conviction of such person for a depending on the faith and conscience prior offense under this subsection. statement, but it is true, if that is what and fairness of the American people. the gentleman means. If you violate the Mr. COMBS. That is correct. This bill is fair in the careful delineat­ law you are subject to penalties. The · Mr. ALLEN of Louisiana. Mr. Chair­ ing of the line of coverage. It puts in the law says that. man, will the gentleman yield? Administrator the rule-making power Mr. COMBS. The rule-making power Mr. COMBS. I cannot yield; I have subject to review of the court, in orde; granted in here is essentially to do the only 5 minutes. When we get to talking to make certain whether a man is cov­ things you fellows for two days have about these rules the time slips by so. ered or not, and thus remove the shadow preached ought to be done and that is to rapidly. Let me make a few observa­ territory that the courts have created by ~lear up the fog territory that has in­ tions. I can only make them generally. the construction that these gentlemen fested the administration of this law, When we get under the 5-minute rule, have been complaining about. The only and hounded those people who wanted let us have these things explained. way we can figure this out, after weeks of to comply, &s you say. But, what does A good deal has been said about work working on the job, is now before you for this do? This says that clarifying reg­ being done behind the scenes. It was your consideration. ulations may be made. Then there is not a question of the green dragon or If you have a plan which you have incorporated in the bill, if you will read the green hornet or some ghost. A figured out, why not tender it? I am it, by reference, both the Administrative number of us fellows scattered about the astonished at my friends on the other Procedure Act enacted by the Seventy­ country, from the South; mainly, did side of the aisle that they find them­ ninth Congress, and the portal-to-portal work with some of the boys from the selves here without any bill at all and bills, both of which impose the statute North in an effort to try to reach a com­ without any constructive opposition to of limitations, and the procedure act mon agreement. There was no trading. the Lesinski bill, but with a flank attack provides for a court review of any order Some little concessions, and they were upon the bill tendered by the majority of made under that procedure system in exceedingly small and no more than the the committee. I should like to ask the which the administrator's findings will very minimum we thought we could seek, gentleman from Pennsylvania this ques­ not be binding upon the court u~ess they were granted to certain types of southern . tion, if I may : are supported by substantial evidence. industry. Is it your plan to off er a substitute bill, Furthermore, no prosecution for an of­ Yesterday the gentleman froin Ohio or will you and your group and your com­ fense under this law can be reached ex­ [Mr. BROWN] made the sta.tement that mittee support th~ Lucas bill? cept for what? A wilful violation. Sec­ he supposed the southerners traded the Mr. McCONNELL. Mr., Chairman, I ond, it is reached in court. Third, the committee out of a lot. We did not. can only speak for myself. I am sup­ court must find the man guilty and pre­ But I did have the privilege of working porting the Lucas bill. scribe his penalty, and it can only pre­ with a number of members of the com­ Mr. COMBS. You do not know about scribe a fine for a repeated wilful of­ mittee on this bill. I have never met ·your fellow-members on the committee? f ender. What is wrong with that? finer gentlemen or dealt with more fair­ Mr. McCONNELL. It has not been Mr. BARDEN. Mr. Chairman, will minded men. What we have tried to made a party matter. the gentleman yield? bring in is an honest and a forthright The CHAIRMAN. The time of the Mr. COMBS. I yield to the gentleman bill. I do not tell you that the bill will gentleman from Texas has expired. from North Carolina. work or that it is perfect. I can only Mr. WHITTINGTON. Mr. Chairman, Mr. BARDEN. The gentleman says I tell you in· my humble judgment, after I ask unanimous consent to extend my did not know what I was talking about, 3 months of trying to work out with great remarks at this point in the RECORD. but the gentleman admits that subsec­ care with other Members certain provi­ The CHAIRMAN. Is there objection tion 2 on page 35 states, "any of the sions, that it is infinitely better than the to the request of the gentleman from provisions of any regulation or order of existing law and infinitely better than Mississippi? the Secretary issued under section 11 anything that has been offered. There was no objection. 1949 ·CONGRESSIONAL RECORD-HOUSE 11125 Mr. WHITTINGTON. Mr. Chairman, ment.- Of cours.e there are exceptions in this substitute. These very Republicans the so-called Lesinski bill, H. R. 5856, to the matter of interstate commerce in­ did not have the courage or nerve to in­ . provide for the amendment of the Fair . . volving transportation and ·other large troduce a bill of their own or any pro­ Labor Standards Act ·of 1938, is before interstate activities. . posal which would improve, if that is us. I favor substituting H. R. 5894, the I urge that the Lucas bill be substituted possible, the present Lesinski bill, which Lucas bill, for the said Lesinski bill. for the Lesinski bill primarily because of as I said before, has been debated tnese The choice is between the two bills. It its clarification of the existing Fair Labor past 4 hours. Their sole purpose and is not a question of extending the cover­ Standards Act. of the continuance of the aim is to scuttle and destroy the commit­ age or of raising the minimum wage, but agricultural exemptions under the Sec­ tee bill. My Republican friends and I repeat that the choice is only between retary of Agriculture and because the some of the Dixiecrats do not hesitate, the two bills as to how many additional coverage is not materially extended, but however, to vote millions of dollars for employees will be covered and as to how reduced. In addition exemptions for re­ foreign labor, but when it comes to fair high the minimum wage will be increased. tailers are clarified and ,exemptions for treatment for the American wage earner There are a number of reasons why I othei: small dealers are increased. they are deaf and blind to their demands favor the Lucas bill. By interpretation The CHAIRMAN._ All time has ex­ and appeals. the Fair Labor Standards Act has been pired. I frankly do not think there are a expanded far beyond the intent of the The Clerk will read. half a dozen Members, with the excep­ original act. Clarifying legislation is es­ Mr. HARRIS. · Mr. Chairman, I make tion of ' the inner Republican coalition sential. The Lucas biil .supplies the clari­ the point of order that a quorum is not leaders that are familiar with Mr. LUCAS' fication that is needed. On the other .present. bill because day before yesterday, he ad­ hand, the Lesinski bill not only encour­ The CHAIRMAN. The Chair will vocated another bill but when the ma­ ages further expansion by interpretation, ·count. [After counting.] One hundred jority of the members of the Committee but confers unusual powers on the ad­ .and eighty-four Members are present, a on Education and Labor · agreed on a ministration to make rules and regula­ quorum. compromise bill, eliminating some of the tions, a violation of which is punished REASONS WHY COMMITI'EE BILL, H. R. 5856, objectionable-to some gentlemen-pro­ by fine and imprisonment. . PROVIDING FOR AN INCREASE TO 7 5 CENTS AN visions, the gentleman from Texas [Mr. It strikes me that a minimum wage HOUR IN THE MINIMUM WAGE AND WHICH LucAsl, not to be outdone, excluded these HAS BEEN APPROVED BY A MAJORITY OF THE provisions from his bill also and made based upon the cost of living is sound. COMMITTEE ON EDUCATION AND LABOR, SHOULD A flexible provision is in order. When BE ENACTED INTO LAW other changes which very few Members the costs of living advance, wages may are familiar with. But the meaning of advance. When the costs of living de­ Mr. SABATH. Mr, Chairman, I ask all this, Mr. Chairman, as I said before, crease, wages may be reduced. The unanimous consent to extend my re­ is to destroy the . committee bill, if Lucas bill contains a flexible provision. marks. at this point in the RECORD. possible. The CHAIRMAN. Is there objection The minimum wage is fixed at 65 cents, "LUCAS COMPARISON AND NAM" to the request of the gentleman from but if the costs of living decrease the rate Yes, I received from the gentleman may be reduced to. 50 or 52% cents. Illinois? There was no objection. from Texas [Mr. LucAsl a copy of a There is substantially no extension in so-called comparison of his bill to the the coverage under the Lucas bill, while Mr. SABATH. Mr. Chairman, I have listened for nearly 4 hours to the de­ committee bill. I wonder who aided and under the Lesinski bill the.coverage, espe­ assisted in the preparation of this 12- cially with respect to processing, local bate on this minimum-wage bill now page comparison? Is not it possib ~ e that retailing and servicing establishments, is before us. Half of that time has been consumed by gentlemen who have at all it is the work of ·experts of the highly largely extended. In the Lucas bill re­ paid National Association of Manufac­ tail lumber dealers, local laundries, and times opposed any and all legislation that was in the furtherance of the cause turers in conjunction with the Republi­ also small sawmills, are exempt. Under can leaders-in fact, that is my candid the terms of the Lucas bill the agricul­ of labor. I was amazed that some of these gen­ and strong belief. My many years of tural exemptions of the Fair Labor experience familiarized me with the Standards Act are continued and re­ tlemen would go to the extent that they have in an effort to prejudice the minds shrewd and underhand methods em­ stricted. The operations of cotton gins ployed by the Republicans in attempting ts placed upon the Secretary of Agricul­ of the membership by making unjustifi­ able and unwarranted statements which to def eat American legislation that tends ture rather than the Department of to aid, relieve,' or bring about a decent Labor. The agricultural exemptions are not born~ out by the facts or the provisions of this bill. minimum wage for the underpaid Amer­ have not been clarified as much as I could ican wage earner. wish. Personally I think that cotton COMMITTEE BILL CAREFULLY CONSIDERED FUTILE ATTEMPT OF MR. BARDEN gins, oil mills, and cotton compresses I appreciate the fact that some gentle­ should be exempt from both wages and men, who feel that treating the wage The gentleman from North Carolina hours, and that · the administration of earner decently so he can provide ade­ [Mr. BARDEN] has tried to instill fear in the agricultural exemptions, particularly · quately for his family, have adequately the membership by quoting the provi­ with respect to cotton gins in the area answered some . of the arguments made sions of the committee bill tha ·, relate to of production, should be under the Sec­ by those desirous of emasculating the the new power given to the Secretary of retary of Agriculture, and the Lucas bill committee bill. I realize too that the Labor and ~ lso the penal provisions ef­ so provides. committee bill is one which has been fective on violation of this proposed bill; I would like to see an amendment to carefully considered by the Committee but he does not state that all of these modify the Walsh-Realey Act, but I must provisions apply to second off enders and be realistic. I know of no reason why on Education and Labor, and which com­ are not within the power of the Secretary the labor costs under Government con­ mittee, in its sincere desire to bring to of Labor, for such offenders have a right tracts should be different from the labor the floor a bill which would receive ma­ · of appeal and due process through our costs under private contracts. There jority approval, consulted with the lead­ courts. No, he would not mention that, should be no discrimination. However, ers of many sections of our country and but the gentleman from Texas, Judge it will be kept in mind that the Walsh­ agreed on the bill presently before us, COMES, I feel, has corrected the gentle- - Healey Act can be modified by separate namely, H. R. 5856. I understand that man from North Carolina, Mr. BARDEN's legislation. _ shortly the gentleman from Texas [Mr. views on this point, for the gentleman Because of the difference in the cost of LUCAS] will endeavor to sidetrack the from North Carolina [Mr. BARDEN] at living in the several States of the Union, committee bill for his bill which has not all times opposes every worth-while bill because of differences in climate, because been considered by that committee and which might in the slightest degree aid of differences in the accommodations who sets himself up above the judgment and further the cause of labor. Is all furnished agricultural workers as com­ of the Committee on Education and this for the purpose of protecting the Labor. · pared with those furnished workers in Republican carpet-~agger manufactur­ · industry, and because of the difference REPUBLICANS ALWAYS OPPOSE LABOR LEGISLATION ers who sold out their employees in the in agricultural, climatic, and other con• I understand also, that many Republi­ East and the West and moved to North ditions, I have always advocated that the cans who always and at all times oppose Carolin?, and other Southern States, for regulation of wages and hours is for the legislation that is in the interest of the the sole purpose of obtaining cheap States rather than the Federal Govern-· masses and labor, will I am sure, support labor? · XCV-701 11126 CONGRESSIONAL RECORD-HOUSE AUGUST 9 WORTHLESS SLIDING SCALE that it could be used by them for political Republican hands by discussing what The gentleman from Texas [Mr. purposes notwithstanding the damage . might happen if and when a recession LucAs] has embodied in his bill and lays and harm that it would bring to our ever comes. great stress on the sliding-scale provision economy and to our country. No, they ORGANIZED VERSUS UNORGANIZED LABOR of his proposed substitute, which as I are not interested in the welfare of our Some of the gentlemen who are op­ said on the f'.oor yesterday, would mean great country, but uppermost in their posed ·to this fair committee bill have nothing but uncertainty and confusion. heads is how to fool and mislead the been, as a rule, the same people who In this connection I desire to insert a American people in obtaining their votes are opposed to labor organizations. This statement that came to me a few minutes to serve the vested interests and to ac­ bill, let me point out, will not adversely . ago on this point: complish therefrom their selfish ends. affect labor organizations, for all organ­ PROPOSAL WOULD MAKE CONGRESS WAGE-CUTTING CONTINUED PROSPERITY AND HEALTHY ECONOMIC ized labor earns more than the measley AGENCY CONDITIONS 75 cents minimum or $30 per week as A minimum wage tied to cost of living As a matter of fact, that great Re­ provided for herein; rather it will aid and puts Congress into the business of wage cut­ publican National City Bank of New York assist unorganized labor, many white. ting even if prices drop only a few percent. stated in their recent Monthly Letter collar workers who receive less than 75 Employers who might not otherwise reduce as follows: wages will be encouraged to do so 1f the mini­ cents per hour, and again, unfortunately, mum wage goes down only a few cents, fol­ The business news during July has borne there are many hundreds of thousands ef lowing on a drop in the cost of living and out indications that began to appear in June them that find it impossible to make blame the cut on the Government. Many that the hand-to-mouth buying policies and both ends meet in the most prosperous employers who could legally have raised reduction of inventories since the first of times and in the most prosperous coun­ wages during the war hid behind the Gov­ the year were clearing the way for. an up­ turn of demand in many lines. For the first try in the history of the world. ernment; the indu~ement to do so again BE TRUE TO PARTY AND PLEDGES would be offered by this proposal. time since the slump set in, buying in sub­ A minimum wage tied to the cost of living stantial volume appeared in nonferrous In conclusion, Mr. Chairman, I find it index is an open invitation by Government metals, primary textiles, and various other hard to understand why men of supposed to employers to reduce wages in the lowest industries, bringing firmer prices in nu­ intelligence-and they must have some paid industries if prices drop even slightly. merous cases and a better feeling through- when they can be elected to this House­ It gives Government sanction t0 wage cuts out business generally. · are devoid of any scintilla of justice, sym­ to workers who can least afford them. The American Bankers Association pathy, and fairness to their fellow men, BUSINEsS UNCERTAINTY AND INJUSTICE WILL told Senators there is no danger of a and that, further, they can be so untrue RESULT IF MINIMUM WAGE TIED TO CHANGES real depression, and that business is in to their pledges and party under which IN COST OF LIVING fact showing a pick-up.· label they hold seats in this body. This Contracts will be uncertain. The mini­ In the Washington Evening Star of applies to the gentlemen on both sides. mum wage may rise during the life of a con­ tract for manufacture taken during the latter August 3, 1949, Mr. Earl R. Muir., presi­ Mr. Chairman, I fervently hope that part of the year. What price shall the manu­ dent of the Louisville, Ky., Trust Co., the Repo-Dixiecrat combination that un­ facturer quote? Workers will be unemployed said there can be no real depr~ssion fortunately has been formed and has 1f the firm waits to see what the new mini­ when we have in the hands of millions existed for nearly 4 years will not suc­ mum will be. of people some $175,000,000,000 in sav­ ceed in defeating this extremely r..1eri­ Firms placing contracts may wait if it ap­ ings and deposits. We are going through torious and fa_ir bill that was reported, pears that a reduction in the minimum will a very fine period of readjustment. as I said, after many months of careful take place. Perhaps the principal can find a fl.rm that will cut wages with a reduction in In this -same connection, .conditions consideration by the Commit"tee on Edu­ the minimum and quote a price a few cents cannot be too bad for witness the state­ cation and Labor. a dozen lower. That may cause unemploy­ ment that appeared in the New York Mr. Chairman, though this bill has ex­ ment among the workers where the buying Times under date of August 7, 1949, rel­ cluded many of the provisions that organization normally placed its contracts. ative to the Chrysler Corp. proftts-:--this should have been covered under a mini­ Reasonable stability is replaced by chronic is only one corporation, and many similar mum-wage bill, I, nevertheless, support instability and uncertainty. ' situations exist as I have pointed out it vigorously because it is the best bill NO ANALOGY BETWEEN FARM PARITY PRICES AND from time to time in my remarks: that we can secure, due to the unholy MINIMUM WAGE TIED TO COST OF LIVING FIFTY-THREE MILLION TWO HUNDRED AND alliance, as I said, that exists on the part Changes in the parity price affect all pro­ TWENTY-TWO THOUSAND EIGHT HUNDRED AND of the Republicans and the Dixiecrats. ducers of the particular farm product. A FORTY-THREE DOLLARS IS CLEARED BY CHRYS• The CHAIRMAN. The Clerk will change in the minimum wage· based on LER IN HALF YEAR changes in the cost of living does not affect read. all wage and salary earners; it affects only A net profit of $53,222,843, equal to $6.12 The Clerk read as fallows: a share on 8,702,264 shares of capital stock, those in the lowest-wage industries. (It is was reported yesterday by Chrysler Corp. for Be it enacted, etc., That this act may be not proposed to tie the salaries of corpora­ the first 6 months of the year. Included in cited as the "Fair Labor Standards Amend­ tion executives, for example, to changes in the earnings are · dividend payments from ments of 1949." the cost of living, but only the incomes of foreign subsidiaries of $13,080,524 accumu­ Mr. LUCAS. Mr. Chairman, I offer a the lowest paid wage earners.) lated from profits of prior years not hereto­ TYING MINIMUM WAGE RATES TO CHANGES IN fore available for transfer to this country. substitute amendment, which I send to COST OF LIVING RUNS COUNTER TO COLLECTIVE In the same period last year the company the Clerk's desk. BARGAINING PRACTICE showed a profit of $35,786,010, or $4.11 a The Clerk read as follows: Workers and employers across the bar­ share, including $7,318,918 from foreign sub- Amendment offered by Mr. LUCAS as a sub­ gaining table have worked out wage prac­ sidiaries. · stitute: Strike out all after the enacting tices which have tended to give the lowest Net sales for half year were $950,927,855, clause and insert in lieu thereof the follow­ wage earners the benefit of greater per­ against $662,812,815, covering 573,289 cars ing: "That this act may be cited as the 'Fair centage increases during periods when wage and trucks, compared with 439,159 in 1948. Labor Standards Amendments of 1949.' increases were obtainable, and, in reverse, In fact, all reports disclose that busi­ " SEC. 2. The Fair Labor Standards Act of to apply policies which gave greater protec­ ness and our general economic conditions 1938, as amended (29 u. s. c. 201-219), ts tion to workers in the lowest wage cate­ hereby amended to read as follows: gories, during depression periods. are improving; that orders for manufac­ " • SEC. 1. This act may be cited as the "Fair The proposal to adopt a policy which will tured products are increasing and even Labor Standards Act of 1949." encourage wage reductions for the lowest the professional and public short-selling ."' SEc. -2. (a) The Congress hereby finds wage workers if the cost of living declines manipulators are being put to rout, since that the existence, in industries engaged in slightly runs counter to these practices. this very week stock and bond prices are commerc~ or in the production of goods for All of this sliding-scale talk is on the rising steadily because of these improved commerce, of labor conditions detrimental theory that the country may suffer the general conditions. We have nothing to to the maintenance of the minimum stand­ throes of a recession and the employers fear. ard of living necessary for health, efficiency, BARKING UP WRONG TREE and general well-being· of workers (1) causes may not be able to pay a minimum of 75 commerce and the channels and instrumen- · cents per hour or $30 per week, if the Therefore, ·Mr. Chairman, I feel it is talities of commerce to be used to spread and employees are employed the entire week. fair to state that the gentleman from perpetuate such labor conditions among the The Republicans, I am confident, would Texas [Mr. LUCAS] is barking up the workers of the several States; (2) burdens like to see a recession brought about so wrong tree when he tries to play into the commerce and the free flow of goods in 1949 CONGRESSIONAL RECORD-HOUSE 11127 commerce; (3) constitutes an unfair method "'(m) "Oppressive child labor" means a connection with the matters co.vered by this of competition in commerce; ( 4) leads to condition of employment under which ( 1) act as he may find advisable. labor disputes burdening and obstructing any employee under the age of 16 sears ls "'(e) No ·provision of this act imposing commerce and the free fiow of goods in com­ employed by an employer (other than a any liability, disability, or punishment shall merce; and (5) interferes with the orderly parent or a person standing in place of a apply to any act done or omitted in good and fair marketing of goods in commerce. • parent employing.his own cbild or a child in faith in conformity with any written regula­ "• (b) It is hereby declared to be the policy his custody under the age of 16 years in an tion, order, or interpretation of the Admin­ of· this act, through the exercise by Congress occupation other than manufacturing or istrator ,or the Secretary of Agriculture, as of its power to regulate commerce among the mining or other than an occupation found the case may be, notwithstanding that such several States and with foreign nations, to by the Administrator to be particularly haz­ Tegu,lation, order, or interpretation may, after correct and as rapidly as practicable to ardous for the employment of children be­ such act or omission, be amended or rescinded eliminate the conditions above referred to tween the ages of 16 and 18 years or detri­ or determined by judicial authority to be in such industries without substantially cur­ mental to their health or well-being) in any invalid for any reason. tailing employment or earning power. occupation, or (2) any employee between the ages of 16 and 18 years is employed by an " 'SPECIAL INDUSTRY COMMITTEES FOR PUERTO " ' DEFINITIONS employer in any occupation which the Ad­ RICO AND THE VIRGIN ISLANDS "'SEC. 3. As used in this act- ministrator shall find and by order declare to "'SEC. 5. (a) The Administrator shall as "' (a) "Person" means an individual, part­ be particularly hazardous for the employ­ soon as practicable appoint a special industry nership, association, corporation, business ment of children between such ages or detri­ committee to recommend the minimum rate trust, legal representative, or any organized mental to their health or well-being; but op­ or rates of wages to be paid under section group of persons. pressive child labor shall not be deemed to 6 to employees i.n Puerto Ric0 or the Virgin "' (b) "Commerce" means trade, com­ exist by virtue of the employment in any oc­ Islands, or in Puerto Rico and the Virgin merce, transportation, transmission, or com­ cupation of any person with respect to whom Islands, engaged in commerce or in the pro­ munication among the sev.eral States or be­ the employer shall have on file an unexpired duction of goods for commerce, or the Ad­ tween any State and any place outside certificate issued and held pursuant to reg­ ministrator may appoint separate industry thereof. ulations of the Administrator certifying that committees to recommend the minimum "'(c) "State" means any State of the such person is above the oppressive child­ rate or rates of wages to be paid under sec­ United States or the District of Columbia or labor age. The Administrator shall provide tion 6 to employees therein engaged in com­ any Territory or possession of the United by regulation or by order that the employ­ merce or in the production of goods for States. ment of employees between the ages of 14 commerce in particular industries. An in­ "'(d) "Employer" includes any person act­ and 16 years in occupations other than man­ dustry committee appointed under this sub­ ing directly or indirectly in the interest of an ufacturing and mining shall not be deemed section shall be composed of residents of employer in relation to an employee but shall to constitute oppressive child labor if and such island or islands where the employ~es .not include the United States or any State to the extent that the Administrator de­ with respect to whom such committee was or political subdivision of a State, or any termines that such employment is confined appointed are employed and residents of the labor organization (other than when acting to periods which will not interfere with United States outside of }.>uerto ·Rico and as an employer) ' or anyone acting in the their schooling and to conditions which will the Virgin Islands. In determining the capacity of officer ' or agent of such labor not interfere with their health and well­ minimum rate or rates of wages to be paid, organization. · being. and in determining classifications, such in­ "'(e) "Employee" 1ncludes any individual "'(n) "Wage" paid to any employee in­ dustry committees and the Administrator employed by an employer. cludes the reasonable cost, as determined by shall be subject to the provisions of section 8. "'(f) ".1griculture" includes farming in all the Administrator, to the employer of furn­ " '(b) An industry committee shall be ap­ its branches and among other things includes ishing such employee with board, loqging, pointed by the Administrator without regard the cultivation and tillage of the soil, dairy­ or other facilities, if such board, lodging, or to any other provisions of law regarding the ·ing, ~he production, cultivation, growing, and other facilities are customarily furnished by appointment and compensation Of employees harvesting of any agricultural or horticul­ such employer to his employees. of the United States. It shall include a num­ tural commodities (including commodities " 'ADMINISTRATION ber of disinterested persons representing the defined as agricultural commodities in sec­ "'SEC. 4. (a) There is -hereby created in public, one of whom the Administrator shall tion 15 (g) of the Agricultural Marketing designate as chairman, a like number of Act, as amended), the raising of livestock, the Department of Labor a Wage and Hour Division which shall be under the direction persons representing employers in the in­ bees, fur-bearing animals, or poultry, and dustry, and a like number representing em­ any practices (including any forestry or.lum­ ·of an administrator, to be known as the Administrator of the Wage and Hour Division ployees in the indu~try. In the appoint­ bering operations) performed by a farmer or ment of the persons representing each group, on a farm as an incident to or in conjunc­ (in this act referred to as the "Ar f.urther legislation in wages at the following rates:

• 11128 CONGRESSIONAL RECORD-HOUSE AUGUST 9 "'(1) Until and including December 31, employment in excess of the hours above cause; reasonable payments for traveling ex­ 1949, not less than 65 cents an hour. specified at a rate not less than one and penses, or other expenses, incurred by an "'(2) For each calendar year after 1949, one-half times the regular rate at which he employee in the furtherance of his employ­ not less than the rate prescribed for such 1s employed. er's interests and properly reimbursable by year in the applicable order of the Adminis­ "'(b) No employer shall be deemed to have the employer; and other similar payments to trator determined and issued as follows: On violated subsection (a) by employing any an employee which are not made as compen­ or before the 10th day of December 1949 and employee for a workweek in excess of that sation for his hours of employment; on or before the 10th day of Dec~mber of specified in such subsection without paying ' '(3) sums paid in recognition of services each calendar year thereafter, the Adminis­ the compensation for overtime employment performed during a given period if either, {a) trator shall (A) ascertain the rate, computect prescribed therein 1f such employee ls so both the fact that payment is to be made and to the nearest tenth of a cent, which bears employed- the amount of the payment are determined the same ratio to 65 cents an hour as the " '(1) in pursuance of an agreement, made at the sole discretion of the employer at or average "Consumer Price Index for Moderate­ as a result of collective bargaining by rep­ near the end of the period and not pursuant Income Families in Large Cities" (as deter­ resentatives of employees certified as bona to any prior contract, agreement, or promise mined and published by the Bureau of La­ fide by the National Labor Relations Board, causing the employee to expect such pay­ bor Statistics) for the 12-month period end­ which provides that no employee shall be ments regularly; or (b) the payments are ing October 15 of such calendar year bears employed more than 1,040 hours during any made pursuant to a bona fide profit-sharing to the average "Consumer Price Index for period of 26 consecutive weeks; or plan or trust, to the extent to which the Moderate-Income Families in Large Cities" "'(2) in pursuance of an agreement, made amounts paid to the employee are deter-· (as determined a:pd published by the Bu­ as result of collective bargaining by repre­ mined without regard to hours of work, pro­ reau of Labor Statistics) for the 12-month ser,tattves of employees certified as bona fide duction, or efficiency; or (c) the payments period ending October 15; 1948; and (B) is­ by the National Labor Relations Board, which are talent fees paid to performers, including sue an order prescribing as the minimum provides that during a specified period of announcers, on radio and television pro­ hourly wage rate 'for the immediately suc­ 52 consecutive weeks the employee shall be grams; ceeding calendar year the rate so ascertained employed not more than 2,240 hours and shall "'(4) contributions irrevocably made by (adjusted to the nearest cent): Provided, be guaranteed not less than 1,840 hours (or an employer to a trustee or third person That in no event shall the minimum hourly not less than 46 weeks at the normal number pursuant to a bona fide plan for providing wage prescribed by the Administrator be less of hours worked per· week, but not less than old-age, retirement, life, accident, or health than 50 cents an hour. 30 hours per week) and not more than 2,080 insurance or similar benefits for employees; " '(3) If such employee ts a home worker hours of employment for which he shall re­ "'(5) extra compensation provided by a in Puerto Rico or the Virgin Islands, not ceive compensation for all hours guaranteed premium rate paid for certain hours worked less than the minimum piece rate prescribed or worked at rates not less than those ap­ by the employee in any day or workweek by regulation or order; or, if no such mini­ plicable under the agreement to the work because such hours are hours worked in ex­ mum piece rate is in effect, any piece rate performed and for all hours in excess of the cess of 8 in a day or 40 in a -workweek or in adopted by such employer which shall yield, guaranty which are also in excess of 40 hours excess of the employee's normal working to the proportion or class of employees pre­ in the workweek or 2,080 in such period at hours or regular working· hours, as the case · scribed by regulation or order, not less than rates not less than one and one-half times may be; the applicable minimum hourly wage rate. the regular rate at which he is employed; or "'(6) extra compensation provided by a Such minimum piece rates or employer piece "' (3.) for a period or periods of not more premium rate paid for work by the employee rates shall be commensurate with, and shall than 14 workweeks in the aggregate in the on Saturdays, Sundays, holidays, or regular be paid in lieu of, the mi:pimum hourly wage calendar year in any industry found by the days of rest, or on the sixth or seventh day of rate applicabfe under the provisions of this Administrator to be of a seasonal nature, the workweek, where such premium rate is section. The Administrator, or his author­ and if such employee receives compensation not less than one and one-half times the ized representative.-shall have power to make for employment in excess of 12 hours in any rate established in good faith for like work such regulations or orders as are necessary workday, or for employment in excess of performed in nonovertime hours on other or appropriate to carry out any of the pro­ 56 hours in any workweek, as the case may days; or visions of this paragraph, including the power be, at a rate not less than one and one-half " '(7) extra compensation provided by a without limiting the generality of the fore­ times the regular rate at which he is em­ premium rate paid to the employee, in pur­ going,, to define any operation or occupation ployed. suance of an applicable employment contract which is performed bY such home-work em­ " ' ( c) In the case of an employer engaged or collective-bargaining agreement, for work ployees in Puerto Rico or the Virgin Islands; in the first processing of milk, buttermilk, outside of the hours established in good faith to establish minimum piece rates for any whey, skimmed milk, or cream into dairy by the contract or agreement as the basic, operation or occupation so defined; to pre­ products, or in the ginning and compressing normal, or regular workday (not exceeding scribe the method and procedure for ascer­ cotton, or in the processing of cottonseed, 8 hours) or workweek (not exceeding 40 taining and promulgating minimum piece or in the processing of sugar beets, sugar­ hours), where such premium rate is not rates; to prescribe standards for employer beet molasses, sugarcane, or maple sap, into les3 than one and one-half times the rate piece rates, including the proportion or class sugar (but not refined sugar) or into sirup, established in good faith by the contract or of empioyees who shall receive not less than the provisions of subsection (a) shall not agreement for like work performed during the minimum hourly wage rate; to define apply to his employees in any place of em­ such workday or workweek. the term "home worker"; and to prescribe ployment where he is so engaged; and in the "'(e) No employer· shall be deemed to have the conditions under which employers, case of an employer engaged in the first proc­ violated subsection (a) by employing any agents, contractors, and subcontractors shall essing of, or in canning or packing, perish­ employee !or a workweek in excess of 40 cause goods to be produced by home workers. able or seasonal fresh fruits or vegetables, hours if such employee is employed pur­ "'(b) The provisions of paragraphs (1) and or in the first processing, within the area of suant to a bona fide individual contract, or (2) of subsection (a) of this section shall be production {as defined by the Secretary of pursuant to an agreement made as a result supersede'd in the case of any employee in Agriculture), of any agricultural or horti­ of collective bargaining by representatives of Puerto Rico or the Virgin Islands engaged cultural commodity during seasonal opera­ employees, if the duties of such employee ne­ in commerce or in the production of -goods tions, or in handling, slaughtering, or dress­ cessitate irregular hours of work, and the for commerce only for so long as and insofar ing poultry or livestock, the provisions of contract or agreement (1) specifies a regu­ as such employee is covered by a wage order subsection (a), during a period or J?eriods of lar rate of pay of not less than the minimum. heretofore or hereafter issued by the Ad­ not more than 14 workweeks in the aggregate hourly rate provided in section 6 {a) and ministrator pursuant to the recommenda­ in any calendar year, shall not apply to his compensation at not less than one and one­ tions of a special industry committee ap­ employees in any place of employment where hal! times such rate for all hours worked in pointed pursuant to section 5: Provided, excess of 40 in any workweek and (2) pro­ That the wage order in effect prior to the he is so engaged. , " ' {d) As used in this section the "regular vides a weekly guaranty of pay for not more effective date of this act for any industry in than 60 hours based on the rates so specified. Puerto Rico or the Virgin Islands shall apply rate" at which an employee ts employed to every employee in such industry covered shall be deemed to include all remuneration "'(-f) No employer shall be deemed to have by subsection (a) of this section until super­ for employment paid to, or on behalf of, the violated subsection {a) by employing any seded by a wage order hereafter issued pur­ employee, but shall not be deemed to in­ employee for a workweek in excess of 40 suant to the recommendations of a special clude- hours if, pursuant to an agreement or under­ industry committee appointed pursuant t·o " '(l) sums paid as gifts; payments in the standing arrived at between the employer section 5. nature o! gifts made at Christmas time or on and the employee before performance of the other special occasions, as a reward for serv­ work, the amount paid to the employee for " 'MAXIMUM HOURS ice, the amounts o! which are not measured such employment . in excess of 40 hours-- " 'SEC. 7. (a) Except as otherwise provided by or dependent on hours worked, prOduc­ "'(1) in the case of an employee employed in this section, no employer shall employ any tion, or eftlciency; at piece rates, is computed at piece rates not of his employees who is engaged in commerce "'(2) payments made !or occasional pe­ less than one and one-half times the bona or in the production of goods for commerce ' riods when no work ls performed due to vaca­ fide piece rates applicable to the same work for a workweek longer than 40 hours, unless tion, holiday, illness, failure of the employer when performed during nonovertime hours; such employee receives compensation for his to provide sutllcient work, or other similar or

• 1949 CONGRESSIONAL RECORD-HOUSE 11129

"'(2) in the case of an employee perform­ " ' ( 2) The wages established for work of view by the court shall be limited to ques­ ing two or more kinds of work for which like or comparable character by collective tions of law, and findings of fact by the di~erent hourly or piece rates have been labor agreements negotiated between em­ Administrator when supported by a prepon­ established, is computed at rates not less ployers and employees by representatives of derance of the evidence shall be conclusive. than one and one-half times such bona fide their own choosing. No objection to the order of the Adminis­ rates applicable to the same work when "'(3) The wages paid for work of like or trator shall be considered by the court unless performed during nonovertime hours; comparable character by employers who vol­ such objection shall have been urged before and if (i) the employee's average hourly untarily maintain minimum-wage stand­ the Administrator or unless there were rea­ earnings for the workweek exclusive of pay­ ards in the industry. sonable grounds for failure so to do. If ap­ ments described in paragraphs (1) through No classification shall be made under this plication is made to the court for leave to (7) of subsection (d) are not less than the .section on the basis of age or sex. adduce additional evidence, and it is shown minimum hourly rate required by applicable "'(d) The industry committee shall file to the satisfaction of the court that such law, and (11) extra overtime compensation with the Administrator a report containing additional evidence may materially affect the ls properly computed and paid on other its recommendations with respect to the mat­ result of the proceeding and that there were forms of additional pay n,quired to be in­ ters referred to it. Upon the filing of such reasonable grounds for failure to adduce such cluded in computing the regular rate. report, the Administrator, after due notice to evidence in the proceeding before the Ad­ " • (g) Extra compensation paid as described interested persons, and giving them an op­ ministrator, the court may order such addi­ in paragraphs (5), (6), and (7) of subsection portunity to be heard, shall by order ap­ tional evidence to be taken before the Ad­ ( d) shall be creditable toward overtime com­ prove and carry into effect the recommenda­ ministrator and to be adduced upon the pensation payable pursuant to this section. tions contained in such report, if he finds hearing in such manner and upon such terms " 'WAGE ORDERS IN PUERTO RICO AND THE VIRGIN that the recommendations are made in ac­ and conditions as to the court may seem ISLANDS cordance with law, are supported by the evi­ proper. The Administrator may modify his findings by reason of the additional evidence "'SEc. 8. (a) The policy of .nis act with re­ dence adduced at the hearing, and, taking into consideration the same factors as are so taken, and shall file with the court such spect to industries in Puerto Rico and the modified or new findings which if supported Virgin Islands engaged in commerce or in required to be considered by the industry by a preponderance of the eviden ~e shall be the production of goods for commerce is to committee, will carry · out the purposes of this section; otherwise he shall disapprove conclusive, and · shall also file his recom­ reach as rapidly as is economically feasible mendation, if any, for the modification or · without substantially curtailing employment such recommendations. If the Administra­ tor disapproves such recommendations, he setting aside of the original order. ·The the objective of a minimum wage as pre­ judgment and decree of the court shall be scribed pursuant to paragraph (2) of sec­ shall again refer the matter to such com­ mittee, or to another industry committee for final, subject to review by the Supreme Court tion 6 (a) in each such industry. The Ad­ of the United States upon certiorari or certifi­ ministrator shall from time to time convene such industry (which he may appoint for such purpose), for further consideration and cation as provided in title 28, Unite<~ States an industry committee or committees, ap­ Code, section 1254. pointed pursuant to section 5, and any such recommendations. " ' ( e) Orders issued under this section shall "'(b) The commencement of proceedings industry committee shall from time to time under subsection (a) shall not, unless recommend the minimum rate or rates of define the industries and classifications therein to which they are to apply, and shall specifically ordered by the court, operate as a wages to be paid under section 6 by employ­ stay of the Administrator's order. The court ers in Puerto Rico or the Virgin Islands, or contain such terms and conditions as the Administrator finds necessary to carry out !)hall not grant any stay of the order unless in Puerto Rico and the Virgin Islands, en­ the person complaining of such order shall gaged in commerce or in the production of the purposes of such orders, to prevent the circumvention or evasion thereof, and to 'file in court an undertaking with a surety or goods for commerce in any such industry or sureties satisfactory to the court for the pay- classifications therein. safeguard the minimum-wage rates estab­ lished therein. No such order shall take . ment to the employees affected by the order, "'(b) Upon the convening o! any such in the event such order is affirmed, of the industry committee, the Administrator shall effect until after dU:e notice is given of the issuance thereof by publication in the Fed­ amount by which the compensation such refer to it the question of the minimum­ employees are entitled to receive under the wage rate or rates to be fixed for such indus­ aral Register and by such other .means as the Administrator deems reasonably calculated order exceeds the compensation they ac­ try. The industry committee shall investigate tually receive while such stay is in effect. conditions in the industry and the commit­ to give to interested persons general notice tee, or any authorized subcommittee thereof, of such issuance. "'INVESTIGATIONS, INSPECTIONS, AND RECORDS may hear such witnesses and receive such "'(f) Due notice of any hearing provided "'SEC. 11. (a) The Administrator or his evidence as may be necessary or appropriate for in this section shall be given by publica­ designated representatives may investigate to enable the committee to perform its duties tion in the Federal Register and by such and gather data regarding the wages, hours, and functions under this act. The commit­ other means as the Administrator deems rea­ employment of minors and other condi­ tee shall recommend to the Administrator sonably calculated to give general notice to tions, and practices of employment in any the highest minimum-wage rates for the interested persons. industry subject to this act, and may enter -industry which it determines, having due "'ATTENDANCE OF WITNESSES and inspect such places and such records regard to economic and competitive condi­ "'SEc. 9. For the purpose of any hearing or . (and make such transcriptions thereof) , tions, will not substantially cl,lrtail employ­ question such employees, and investigate ment in the industry, and will not give any investigation provided for in this act, the provisions of sec,tions· 9 and 10 (relating to such facts, conditions, practices, or mat­ industry in Puerto Rico or in the Virgin ters as he may deem necessary or appro­ Islands a competitive advantage over any the attendance of witnesses and the produc­ tion of books, pap·ers, and documents) of the priate to determine whether any ·person industry i:: the United States outside of has violated any provision of this act, or Puerto Rico and the Virgin Islands. Federal Tr~de Commission Act of September 16, 1914, as amended (U. S. C., 1946 edition, which may aid in the enforcement of the " ' ( c) The industry committee shall rec­ provisions of this act. The Administrator ommend such reasonable classifications with­ title 15, secs. 49 and 50), are hereby made applicable to the jurisdiction, powers, and shall utilize the bureaus and divisions of the in any industry as it determines to be nec­ Department of Labor for all the investiga­ essary for the purpose of fixing for each duties of the Administrator and the industry committees. tions and inspections necessary under this classification within such industry the high­ section. The Administrator shall bring all est minimum-wage rate (not in excess of " 'COURT REVIEW actions under section 17 to restrain viola­ that prescribed pursuant to paragraph (2) "'SEC. 10. (a) Any person aggrieved by an tions of this act. of section 6 (a)) which (1) will not sub­ order of the Administrator issued under sec- "'(b) With the consent and cooperation of stantially curtail employment in such clas­ ·tion 8 may obtain a review of such order in State agencies charged with the administra­ sification and (2) will not give a competitive the United States court of appeals for any tion of State labor laws, the Administrator advantage to any group in the industry, and circuit wherein such person resides or has may, for the purpose of carrying out his func­ shall recommend for each classification in the his principal place of business, or in the tions and duties under this act, utilize the industry the highest minimum-wage rate United States Court of Appeals for the Dis­ services of State and local agencies and their which the committee determines will not trict of Columbia circuit, by filing in such employees and, notwithstanding any other substantially curtail employment in such court, within 60 days after the entry of such provision of law, may reimburse such State classification. In determining whether such order, a written petition praying that the and local agencies and their employees for classifications should be made in any in­ order of the Administrator be modified or services rendered for such purposes. dustry, in making such classifications, and set aside in whole or in part. A copy of such " ' ( c) Every employer subject to any provi­ in determini~g the minimum-wage rates !or petition shall forthwith be served upon the sion of this act or of any order issued under such classifications, no classifications shall Administrator, and thereupon the Adminis­ this act shall make, keep, and preserve such be made, and no minimum-wage rate shall trator shall certify and file tn the court a. records of the persons employed by him be fixed, solely on a regional basis, but the transcript of the record upon which the and of the wages, hours, and other conditions industry committee and the Administrator order complained of was entered. · Upon the and practices of employment maintained by shall consider among other relevant factors filing of such transcript such court shall have him, and shall preserve such records for such the following: exclusive jurisdiction to affirm, modify, or set periods of time, and shall make such reports "'(1) Competitive condition as affected by aside such order in whole or in· part, so far therefrom to the Administrator as he shall transportation, living, and production costs. as it is applicable to the petitioner. The re- prescribe by regulation or order as necessary 11130 CONGRESSIONAL RECORD-HOUSE AUGUST 9 or appropriate for the enforcement of the paper with a circulation of less than 5,000, deliver, or sell with knowledge that ship­ provisions of this act or the regulations or the major part of which circulation is within ment or delivery or sale thereof in com­ orders thereunder. the county where printed and published or merce is intended, any goods in the produc­ counties contiguous thereto; or (10) any tion of which any employee was em ployed in " 'CHILD-LABOR PROVISIONS employee of a street, suburban, or interur­ violation of section 6 or sect ion 7, or in viola­ .. 'SEC. 12. (a) No producer, m anufacturer, ban electric railway, or local trolley or motor­ tion of any regulation or order of t h e Admin­ or dealer shall ship or deliver for shipment bus carrier, not included in other exemptions istrator issued under section 14; except that in commerce any goods produced in an es­ contained in this section; or (11) any in­ any such t ran sport ation, off er, shipment, de­ tablishment situated in the Unit ed Stat es dividual employed within the area of pro­ livery, or sale of such goods by a purchaser in or about which within 30 days prior to duction (as defined by the Secretary of Ag­ who acquired them after such violation oc­ the removal of such goods therefrom any riculture), engaged in handling, packing, curred shall not be deemed unlawful if such oppressive child labor has been employed: storing, ginning, compressing, pasteurizing, purchaser proves that he was wit hout knowl­ Provided, That any such shipment or deliv­ drying, preparing in their r aw or natural edge of such violation, and act ed in good ery for shipment of such goods by a pur­ state, or canning of agricultural or horticul­ fait h in reliance on written assurance from chaser who acquired them after such oppres­ tural commodities for market, or in making the producer that the goods were produced sive child labor has been employed shall not cheese or butter or other dairy products; in compliance wit h the requirements of the be deemed prohibited by this subsection if or (12) any switchboard operator employed act, and no provision of this act shall impose ·such purchaser proves that he was without in a public-telephone exchange which has any liability upon any common carrier for knowledge of the employment of such op­ less than 750 stations; or ( 13) any employee the transportation in commerce in the regu­ pressive child labor, anc;i acted in good faith of an employer engaged in the business of lar course .of its business of any goods not in reliance on written assurance from the operating taxicabs; or ( 14) any employee or produced by such common carrier, and no producer, manufacturer, or dealer that the proprietor in a retail or service establishment provision of this act shall excuse any com­ goods were produced in compliance with the as defined in paragraph (2) of this subsec­ mon carrier from its obligation to accept any child-labor provisions of the act: And pro­ tion, with respect to whom the provisions of goods for transportation; vided further, That a prosecution and con­ sections 6 and 7 would not otherwise apply, · "'(2) to violate any of the provisions of · viction of a defendant for the shipment or engaged in handling telegraphic messages section 6 or section 7, or any of the pro­ delivery for shipment of any goods under the for the public under an agency or contract visions of any regulation or order of the conditions herein prohibited shall be a bar arrangement with a telegraph company where Administrator issued under section 14; to any further prosecution against the same the telegraph message revenue of such agency "'(3) to discharge or in any other man­ defendant for shipments or deliveries for does not exceed $500 a month; or (15) any ner discriminate against any employee be­ shipment of any such goods before the be­ employee employed in planting or tending cause such employee has filed any complaint ginning of said prosecution. trees, cruising, surveying, or felling timber, or instituted or caused to be instituted any "'(b) No employer shall employ · any op­ or in preparing, processing, or transporting proceeding under or related to this act, or pressive child labor in commerce or in ti1e logs or other forestry products, prior to the has ·testified or is about to testify in any production of goods for commerce. completion of the processing thereof in and such proceeding, or has served c:- is about to serve on an industry committee; " 'EXEMPTIONS about a sawmill, if the number of' employees employed by his employer in forestry or lum­ " ' ( 4) to violate any of the provisions of "'SEC. 13. (a) The provisions of sections bering operations does not exceed 12; or (16) section 12; 6 and 7 shall not apply with respect to ( 1) any employee employed in connection with " ' ( 5) to violate any of the provisions of any employee employed in a bona fide execu­ the operation or maintenance of ditches, section 11 (c), or to make any statement, tive, administrative, profession, or local re­ canals, reservoirs, or waterways, not owned report, or record filed or kept pursuant to tailing capacity, or in the capacity of outside or operated for profit, and which are used the provisions of such section or of any salesman (as such terms are defined and de­ exclusively for supply and storing of water regulation or order thereunder, knowing such limited by regulations of the Administrator) ; for agricultural purposes. statement, report, or record to be false in a or (2) any employee employed by any retail " ' ( b) The provisions of section 7 shall not material respect. or service establishment, more than 50 per­ apply with respect to ( 1) any employee with "'(b) For the purposes of subsection (a) cent of which establishment's annual dollar respect to whom the Interstate Commerce ( 1) proof that any employee was employed volume of sales of goods or services is made Commission has power to establish qualifi­ in any place of employment where goods within the State in which the establishment cations and maximum hours of service pur­ shipped or sold in commerce were produced, is located. A "retail or service establishment" suant to the provisions of section 204 of the within 90 days prior to the _removal of the shall mean an establishment 75 percent of Motor Carrier Act, 1935; or (2) any employee goods from such place of employment, shall whose annual dollar volume of sales of goods of an employer subject to the provisions of be prima facie evidence that such employee or services (or of both) is not for resale and part I of the Interstate Commerce Act; or was engaged in the production of such goods. is recognized as retail sales or services in the (3) any employee of a carrier by air subject " 'PENALTIES particular industry; or (3) any employee em­ to the provisions of title II of the Railway "'SEC. 16. (a) Any person who willfully ploy-ed by any establishment engaged in Labor Act. violates any of the provisions of section 15 laundering, cleaning, or repairing clothing or " ' ( c) The provisions of section 12 relat­ shall upon conviction thereof be subject to fabrics, more than 50 percent of which es-. ing to child labor shall not apply with respect a fine of not more than $10,000, or to im­ tablishment's annual dollar volume of sales to any employee employed in agriculture prisonment for not more than 6 months, or of such services is made within the State while not legally required to attend school both. No person shall be imprisoned under in which the establishment is located, pro­ or to any child employed as an actor or per­ this subsection except for a)'.l offense com­ vided ·that 75 percent of such establishment's former in motion pictures or theatrical pro­ mitted after the conviction of such person annual dollar volume of sales of such serv­ ductions or in radio or television productions. for a prior offense under this subsection. ices is made to customers who are not en­ "'LEARNERS, APPRENTICES, AND HANDICAPPED "'(b) Any employer who violates the pro­ gaged in a mining, manufacturing, transpor­ WORKERS visions of section 6 or section 7 of this act tation, or communications business; or (4) "'SEC. 14. The Administrator, to the extent shall be liable to the employee or employees any employee employed by an establishment affected in the amount of their unpaid min­ which qualifies as a retail establishment un­ necessary in order to prevent curtailment of opportunities for employment, shall by regu­ imum wages, or their unpaid overtime com­ der paragraph (2) of this subsection and is pensation, as the case may be, and in an recognized as a retail establishment in the lations or by orders provide for ( 1) the em­ ployment of learners, of apprentices, and of additional equal amount as liquidated dam­ particular industry notwithstanding that ages. Action to recover such liability may such establishment makes or processes the messengers employed exclusively in deliver­ ing letters and messages, under special cer­ be maintained in any court of competent goods that it sells; or ( 5) any employee em­ jurisdiction by any one or more employees ployed as a seaman; or (6) any employee em­ tificates issued pursuant to regulations of the Administrator, at such wages lower than for and in behalf of himself or themselves ployed in the catching, taking, harvesting, and other employees similarly situated. No cultivating, or farming_of any kind of fish, the minimum wage applicable under section 6 and subject to such limitations a~ to time, employee shall be a party plaintiff to any shellfish, crustacea, sponges, seaweeds, or such action unless he gives his consent in other aquatic forms of animal and vegetable number, proportion, and length of service as the Administrator shall prescribe; and (2) writing to become such a pa.rty and such life, including the going to and returning consent is filed in the court in which such from work and including employment in the the employment of individuals whose earn­ ing capacity is impaired by age or physical action is brought. The court in such action loading, unloading, or packing of such prod­ shall, in addition to any judgment awarded ucts for shipment or in propagating, process­ or mental deficiency or injury, under special certificates issued by the Administrator, at to the plaintiff or plaintiffs, allow a reason­ ing, marketing, freezing, canning, curing, such wages lower than the minimum wage able attorney's fee to be paid by the de­ storing, or distributing the above products applicable under section 6 and for such period fendant, and cost s of the action. or byproducts thereof; or (7) any employee as shall be fixed in such certificates. "'(c) The Administrator is authorized to employed in agriculture; or (8) any employee supervise. the payment of the unpaid mini­ to the extent that such employee is exempted " 'PROHIBITED ACTS mum wages or the unpaid overtime com­ by regulations or orders of the Administra­ "'SEC. 15. (a) It shall be unlawful for any pensation owing to any employee or em­ tor issued under section 14; or (9) any em­ person- ployees under section 6 or section 7 of this ployee employed in connection with the pub­ " ' ( 1) to transport, offer for transportation, ac<;, and the agreement of any employee to lication of any weekly or semiweekly news- ship, ~eliver, or sell in commerce, or to ship, accept such payment shall upon payment in 1949 CONGRESSIONAL RECORD-HOUSE 11131 full constitute a waiver by such employee or on or after the date of the enactment of give that power to an administrator of any right he may have under subsection this act), on account of the failure of said downtown. That is the question you (b) of this section to such unpaid minimum employer to pay an employee compensation wages or unpaid overtime compensation and for any period of overtime work performed have before you. an additional equal amount as liquidated prior to the date of enactment of this act, if In the Lesinski bill such power is damages. the compensation paid prior to such date for granted and I want to point out to you " 'INJUNCTION PROCEEDINGS such work was at least equal to the compen­ where that power lies. Not only does he "'SEC. 17. The district courts of the United sation which would have been payable for have the power to make rules but the States and the United States courts of the such work had section 7 (d) (6) and (7) and Secretary also may bring suit which will Territories and possessions shall have juris­ section 7 (g) of the Fair Labor Standards Act include suits for back wages, and the diction, for cause shown, to restrain viola­ of 1949 been in effect at the time of such power to bring suit is very broad. The tions of section 15. payment.'' proponents of the section will say that "'RELATION TO OTHER LAWS The CHAffiMAN. The gentleman that power already resides in certain of "'SEC. 18. No provision of this act or of any from Texas is recognized for 5 minutes. the State officers who bring suit for back order thereunder shall excuse noncompli­ Mr. LUCAS. Mr. Chairman, I ask wages. Such powers do exist, but they ance with any Federal or State law or muni­ unanimous consent to proceed for five have always been limited. First, it may cipal ordinance establishing a minimum additional minutes. be limited as to the amount. In Wis­ wage higher than the minimum wage·estab­ consin that limit is $100; in California lished under this act or a maximum work­ The CHAIRMAN. Is there objection? week lower than the maximum workweek There was no objection. and in other States the claimant must established under this act, and no provision Mr. LUCAS. Mr. Chairman, we have be indigent; but in this bill neither is of this act relating to the employment of come to a crucial time. We have come there a limit on the amount in question child labor shall justify noncompliance with to the time when the Members of this or on the financial status of the claim­ any Federal or State law or municipal or­ House are to dE -; de whether they will ant; and, further, Mr. Chairman-and dinance establishing a higher standard than accept an entirel:' new philosophy in I stand on this, too, despite some state­ the standard established under this act. No ments of certain proponents of the provision of this act shall justify any· em­ minimum-wage legislation, or whether ployer in reducing a wage paid by him which they will attempt to follow the present Lesinski bill-there is no limitation on is in excess of the applicable minimum wage law, with the necessary clarifications, to the Secretary as to how far back he can under this act, or justify any employer in continue under an act which was en­ go to bring suit. We all know that there increasing hours of employment maintained acted by the Congress in 1938. That is is no statute of limitation binding any by him which are shorter than the maximum the test and the only test before us. It sovereign unless he himself limits that hours applicable under this act. is not simply the test of whether we shall power. The Senate committee in re~ " 'SEP'\RABILITY OF PROVISIONS enact a bill carrying 75 cents as a mini­ porting a similar bill put ·a statute of "'SEC. 19. If any provision of this act or the mum wage or 65 cents as a minimum limitations in clear and definite terms application of such provision to any person wage or a dollar as a minimum wage in this provision to grant power to bring or circumstai:.ce is held invalid, the re­ or 50 cents as a minimum wage. The suits, but there is no statute of limita­ mainder of the act and the application of test is whether we are going to embark tions in the Lesinski bill and that power such provision to other persons or circum­ into· an entirely new field, whether we goes clear back to October 24, 1938. The stances shall not be affected thereby.' are going to convey such powers to the Secretary of Labor can bring suits for "EFFECTIVE DATE OF CERTAIN CHANGES AND Administrator as have never been con­ back pay following that power clear back SAVINGS CLAUSE veyed by the Congress before in the his­ to that date. That is not all. '{he labor "SEC. 3. (a) This act shall take effect upon tory of the United States, in peacetime. unions are going to put unconscionable the expiration of 60 days from the date of its That is the question. Some of the pro­ pressure upon the Secretary of Labor to enactment, except that tl:).e provisions of sec­ ponent., of the· Lesinski bill are going to bring such suits as that because their tion 7 of the Fair Labor Standards Act of 1949 (relating to overtime compensation) say to you, "We have taken the old act members, as claimants, are limited by shall be in full force and effect from and and added a few things to it." the Portal Act to only 2 years, so they after the date of enactment of this act. I took the Lesinski bill and I marked are going to strongly insist upon the "(b) Any order, regulation, or interpreta­ every line of it which is different from Secretary of Labor bringing those suits. tion of the Administrator of the Wage and the present act. I want to show it to ' But, Mr. Chairman, that is not all. Hour Division or of the Secretary of Labor, you. More than two-thirds of it is en­ Here recently a court or two has said and any agreement entered into by the Ad­ tirely new legislation, conveying more that the Administrator in seeking in­ ministrator or the Secretary of Labor, in power, as I have said, than any Admin­ junctions may recover back wages under effect under the provisions of the Fair Labor istrator has ever possessed in the history its equitable jurisdi.ction. So the gen­ Standards Act of 1938 on the date of enact­ ment of this act, shall remain in effect as of this country in peacetime. I stand on tleman from Michigan [Mr. LESINSKI] an order, regulation, interpretation, or agree­ that statement. · placed in his bill a proviso which is in­ ment of the Administrator of the Wage and You have ·heard others say here that serted for the very purpose of confirm­ Hour Division or the Secretary of Agricul­ the rule-making power is necessary. It ing that power so that the Secretary ture, as the case may be, pursuant to this act, is unfortunate that the gentleman from of Labor in bringing injunction suits can except to the extent that any such order, Texas [Mr. COMBS], who did not have the recover back wages in injunction suits at regulation, interpretation, .or agreement may privilege of attending the hearings on no cost to the employee. be inconsistent with the provisions of this this minimum wage legislation, did not act, or may from time to time be amended, This power to bring suits would neces­ modified, or rescinded by the Administrator hear how the Administrator has extended sitate a corps of lawyers in the Depart­ of the Wage and Hour Division or the Secre­ his powers, without the rule-making ment of Labor reaching to 10,000 in tary of Agriculture, as the case may be, in power. Shall we give the Secretary the number; it would take that many to ad­ accordance with the provisions of this act. rule-making power so that in every case minister that feature of the bill. Let me " ( c) No amendment made by this act shall where there is a fringe decision to make, tell you that the Administrator, in affect any penalty or liability with respect to he can simply write a rule carrying that testifying befc:-e our committee, said that any act or omission occurring prior to the industry under his jurisdiction? That is 51 percent of the businesses which he applicable effective date of this act; but, the question. had inspected last year were in violation; after the expiration of 2 years from such applicable effective date, no action shall be The rule-making power will not only therefore, 51 percent of the businesses instituted under section 16 (b) of the Fair give to the Secretary of Labor such power would have to be sued if they did not Labor Standards Act of 1938 with respect to as to define all words in the Act-and wish voluntarily to comply; I will come any liability accruing thereunder for any act those words are written into the bill­ back to that again· in a minute. Here or omission occurring prior to the applicable but they give him such power as to carry they are wanting to create a great corps effective date of this act. the extension of this act into every field of lawyers at a time when we are trying "(d) No amendment made by this act shall where there has ever been a question of to cut down on the expenses of govern­ be construed as amending, modifying, or re­ whether or not he should have juris- ment; here we are authorizing the Sec­ pealing any provision of the Portal-to-Portal diction. · retary of Labor to hire lawyers to in­ Act of 1947. "(e) No employer shall be subject to any So I say to you that the decision here is stigate litigation and bring suit. And liability or punishment under the Fair Labor not simply 75 cents or 65 cents. The what can a little-business man do? Standards Act of 1938, as amended (in any question is whether you are going to What can he do if a wage-hour incpector action or proceeding commenced prior to abdicate your powers as legislators and comes into his office and asks if he is 11132 CONGRESSIONAL RECORD-HOUSE AUGUST 9 complying, takes a look at his books, .and While we have gotten the gentleman on this bill yesterday that it had been finds some slight error. He will say: from Michigan [Mr. LESINSKI] willing to done, and that the bill had been reported "You have not complied; you owe so answer some questions, let me ask him: out in the regular way. much." He will reply: "I do not owe Did he intend to exclude from the cover­ At any rate, I want to state that the that; I do not owe that much money." age of this act Sears, Roebuck and Mont­ members of the committee were most Suppose an issue is brought against the gomery Ward that do purely an inter­ cooperative, and we believe that we little-business man by the Wage-Hour state business? Answer that question. have reported a bill-it is not perfect, Administrator and the Secretary of Mr. LESINSKI. Anyone who is en­ that is true-but we do believe that it Labor. Under this bill they can carry gaged in interstate commerce is in the is a bill that the members of the Demo­ the case clear to the Supreme Court, at bill. cratic Party can go along with; that is, the taxpayers' expense, yet the little­ Mr. LUCAS. That is simply not true. those of us who fear that our industries business man will have to S'. end his own There has been excluded the interstate­ might be upset in the South by a fiat money to hire a firm of constitutional commerce feature of this exemption in increase to 75 cents. I cannot go into lawyers to carry it clear to the Supreme the old law; therefore, that retail busi­ the details of the bill in the 5 minutes Court. ness which ships in interstate commerce allotted to me. Mr. Chairman, this is the most serious is not covered under this bill. The gen­ Just let me say this: I said I was a piece of legislation which we are going tleman cannot deny that. He has cov­ Democrat and believed in the Democratic to have before us this year. You can ered the typewriter shop that services Pa.rty. I think we have forgotten our talk about the Taft-Hartley bill and for­ Montgomery -Ward and then excluded party responsibility, especially we folks eign-aid bill, you can talk about any of Montgomery Ward. · on the Democratic side. I know there the other bills you wish, but we are not The CHAIRMAN. The time of the are higher loyalties than loyalty to the going to have anything before us as seri­ gentleman from Texas has expired. party. First of all there is loyalty to ous as this bill, or one that will more in­ Mr. LANHAM. Mr. Chairman, I move God and the loyalty to our own integrity. timately affect the daily lives of every to strike out the last word. There is next the loyalty that we owe American citizen as much as this bill. It Mr. Chairman, during the debate on our country, and the loyalty that we owe goes into the very heart and soul of busi­ the bill to repeal the Taft-Hartley Act, our section and our State and then comes ness, the number of hours worked and the gentleman from Illinois [Mr. loyalty to our party, Now, it is not al~ wages paid; that constitutes the heart ARENDS] asked me if I intended to vote ways possible for us to go along with and soul of business. In this bill the for an increase in the minimum wage. our party, because of these higher loy­ gentleman from Michigan carries those I told him I would cross that bridge when alties; but I think party responsibility provisions into every little business. Oh, I got to it. I have now gotten to that in America is very nece~ary at this he says, retail establishments are ex­ bridge. I want to say that during all time. Our very Government is founded empt, but notice the qualifications he this time I have been trying to on the idea of party responsibility and throws around retail establishments. strengthen that bridge so that I could the two-party system, and t appeal to This bill states that retail establishments pass over it without falling into the you today to go along with your party are exempt if they sell to private citizens political morass that might be beneath it. and your committee, not necessarily with for personal or household or family use, With that in view, I was glad when all of the terms of this bill. But why . I believe are the words; in other words a group of southern Congressmen who adopt the substitute that is written-I do it must go into the household, it must be believe in the Democratic Party-who not say written by my friend from Texas, for personal or family consumption and are Democrats and who want to go along as I do not know who wrote it, but it is not business use. Therefore the little with the administration when we can do offered by him. I have the highest re­ typewriter shop that serves the type­ so conscientiously-were asked by mem­ spect for my good friend from Texas; he writers of the business houses in town bers of the Committee on Education and and I are fraternity brothers as a mat­ will be covered, and the gentleman from Labor to get together with them to for­ ter of fact, and I love him, but never­ Michigan [Mr. LESINSKI] will not deny m ..late some bill with which we :Folks in theless he ha·s joined with the Republi­ that. , the South could go along. May I say cans, as is so often done in this Con­ Mr. LESINSKI. Will the gentleman that in working with the Committee on gress, and it is this lack of party re­ yield? Education and Labor, I supposed the sponsibility that has prevented this Con­ Mr. LUCAS. Does the gentleman deny subcommittee had been appointed in the gress from accomplishing its purposes that statement? regular way, and I still suppose that. more speedily than it has. Mr. LESINSKI. I will deny it. The They worked with us in the finest sort The thing I want to say is this: I ask gentleman is wrong. of spirit. They made certain conces­ that we take this bill that the committee Mr. LUCAS. Let us read the gentle­ sions. We explained the situation that has reported out; that if there are man's bill and see if it is covered. we folks in the South were laboring un­ amendments that ought to be written der; that there were certain border-line into it, that we do it, and that we perfect Mr. LESINSKI. I will absolutely deny this bill instead of taking the bill that it. industries that could not stand the 75- cent minimum wage. We explained that has been drafted by the gentleman from Mr. LUCAS. Let me call attention to Texas [Mr. LUCAS]. this language: we could not possibly vote for H. R. 3190; we explained also that ·we could not vote The CHAIRMAN. The time of the As used in this subsection, "retail selling gentleman Jrom Georgia has expired. or servicing" means selling or servicing to for the second Lesinski bill that was private individuals for personal or family thrown into the hopper, which would Mr. LANHAM. Mr. Chairman, I ask consumption. have continued the coverage just as it unanimous consent to proceed for five is at the present time, but would have additional minutes. Is fixing a typewriter in that category? increased the minimum wage to 75 cents. The CHAIRMAN. Is there objection Mr. LESINSKI. That has nothing to I want to say in that connection that to the request of the gentleman from do with that section. I know nothing about the differences Georgia? Mr. LUCAS. That is the gentleman's that may have arisen between the mem­ Mr. RANKIN. Mr. Chairman, reserv­ definition in this bill and he cannot bers of the Committee on Education and ing the right to object, the gentleman deny it. Labor, as I am not a member of that from Georgia accused the gentleman Mr. LESINSKI. That has nothing to from Texas with lining up with the Re­ do with that section. committee, and I am not taking sides publicans, just because some Republi­ Mr. LUCAS. Mr. Chairman, that is today. I just want to say this: That I cans are voting with the gentleman from not all. This definition carries the supposed that the bill we had agreed Texas . . power of the Administrator and of the upon had been submitted to the Com­ Mr. LANHAM. I am just stating my Secretary of Labor into every business mittee on Education and Labor and had conclusions, from the fact that the Re­ in the land. I heard the gentleman been reported out in the regular way. I publicans almost to a man are support­ from Ohio [Mr. BURKE] state that it did have no criticism of the chairman or any ing the Lucas substitute. not cover hotels. How he makes such member of the committee if it wa.s not Mr. RANKIN. That is wrong. an interpretation of the words in the bill done. There were, no doubt, reasons. Mr. LUCAS. I. reserve the. right to is beyond me. - But I supposed until the debate began object further, Mr. Chairman. 1949 CONGRESSIONAL RECORD-HOUSE 11133 Mr. LANHAM. I will yield to the Mr. LANHAM. I do not yield further the bill to certain situations that might gentleman, although he would not yield for a speech by the gentleman because arise. But I do not believe that he to me on yesterday. he made that statement yesterday. I should have the power to, in effect, for­ Mr. LUCAS. I regret that and noted said in th!l beginning of my speech that mulate a criminal statute. He should it in the RECORD this morning. Would I did not know what the truth of the have limited rule-making power. But a the gentleman criticize me because other matter was about that and was not violation of any such rule should not be Members of the House choose to vote interested, but ·I do plead with you to made a criminal offense. · for my bill, whether they be Democrats go along with the administration and The CHAIRMAN. The time of the or Republicans? take the Lesinski bill, which we have gentleman from Georgia has again Mr. LANHAM. I do not criticize any worked on very earnestly and carefully, expired. one. I am pleading for party loyalty, and perfect it instead of the Lucas bill. Mr. LANHAM. Mr. Chairman, I ask harmony, and responsibility. I may say to you that some of us were unanimous consent that I may proceed The CHAIRMAN. Is there objection not too familiar with wage-hour legis­ for another 5 minutes. to the request of the gentleman from lation. We asked that men from the The CHAIRMAN. Objection is heard. Georgia? Department administering the law be Mr. McCONNELL. Mr. Chairman, a There was no objection. called in so that we could have explained parliamentary inquiry.. Did any Mem­ Mr. LANHAM. Mr. Chairman, as I to us the reasons for certain rulings of ber particularly object? say, I have no criticism of any of my col­ the Administrator. We went into the The CHAIRMAN. The Chair will leagues who see fit to vote for the Lucas consideration of this bill with the same again put the question. substitute. But, whichever is adopted is idea that the gentleman from Texas [Mr. Is there objection to the request of going to be amended. I do not think LUCAS] has, that we ought to do some­ the gentleman · from Georgia that he there is any question but that if the thing about ·the definition of the words · proceed for five additional minutes? Lucas substitute is adopted there will be "production of goods for interstate com­ Mr. CRAWFORD. Mr. Chairman, re­ an amendment offered, to raise the min­ merce." , We found that if we attempted serving the right to object, I am going to imum wage to 75 cents. As a matter of to change that law we would open the object because my guess is that debate fact, the gentleman ·from Ohio [Mr. doors for endless litigation and would will be limited on this bill and many of BREHM J said this morning he was going undo what has been done in the past us will be frozen out. That is the only to offer an amendment to raise the min­ 11 years this bill has been in operation. reason for objecting. imum wage to 75 cents. I do not think Moreover, it would require at least an­ The CHAIRMAN. Objection is heard. there is any question if it is not adopted, other 10 years before the new definitions Mr. JACOBS. Mr. Chairman, I move and the Lesinski bill is voted upon, that could be formulated by the courts. We to strike out the last word. there will be an amendment offered to found further that it would mean that Mr. Chairman, first I want to subscribe that bill to make the wage 65 cents. So about 1,000,000 people who are already wholeheartedly to what was said by my after all, whichever bill we adopt will covered under the Act would be taken colleague the gentleman from Georgia be amended. The House will determine out from under the protection ·of the [Mr. LANHAMJ. What has been said whether the minimum wage is to be 65 act. · here in reference to the drafting of this cents or 75 cents. Mr. LESINSKI. Mr. Chairman, will bill is in great measure true, but it has Mr. HARRIS. Mr. Chairman, will the the gentleman yield? been stated in a slanted manner. What gentleman yield? Mr. LANHAM. I yield to the gentle­ happened was that the Committee on Mr. LANHAM. I yield to the gentle­ man from Michigan. Education and Labor finally voted out a man from Arkansas. Mr. LESINSKI. May I say that before bill. We found there were certain Mem­ Mr. HARRIS. The gentleman indi­ the bill H. R. 5856 was put in the hopper bers of this body who felt it would work cated it might be advisable to vote down we had a print of it made and the mem­ injury upon some of their constituents. the Lucas bill and then endeavor to per­ bers of the committee on the Democratic We did hold further meetings and we did fect the Lesinski bill in accordance with _ side, 13, plus about a dozen men on the make certain changes in this measure in the will of the House. The gentleman outside, had the print and worked on order to meet certain conditions which indicated there might be an amendment it befo ::e they decided that it was the we thought appealed to good conscience. on which we would pass, making the actual print they wanted on the bill That is all there is to it. amount 65 cents. H. R. 5856. . Of course, you can state it so that it Mr. LANHAM. I do not think there Mr. BARDEN. Mr. Chairman, will sounds as if it is something wicked, but is any question about it. the gentleman yield? the fact remains that this committee Mr. HARRIS. Is the gentleman in a Mr. LANHAM. I yield to the gentle­ worked with a great number of our position to state that he believes the 65 man from North Carolina. southern brethren who are Democrats, cents would be more in keeping with Mr. BARDEN. There has been so who came up to help us work out a good our economy? much mystery here about the mysterious measure. So far as I am concerned, this Mr. LANHAM. I think so. I frankly 13 that I request the chairman to name is one country and the State of Georgia told the commtttee with which I was the mysterious 13 Democrats that met means something to me, notwithstanding working that I thought the southern and approved the bill. the fact that I live in the State of In­ Members would vote for a 65-cent min­ Mr. LUCAS. Do not include my name diana, and if someone is being injured imum. I shall probably vote for a 75- among them. in the State of Georgia and I can help cent minimum, to keep faith with the Mr. LANHAM. I yielded for a ques­ work out a measure which will not injure committee with which I have been w'ork­ tion. him, I am glad to do it. ing; but I know most of my colleagues Mr. BARDEN. I will ask the gentle­ Mr. MORTON. Mr. Chairman, will from the South believe that the mini­ man, then. the gentleman yield? mum should be 65 cents and they may Mr. LANHAM. I do not know. I Mr. JACOBS. I yield. well be right. know nothing about the mystic 13 and Mr. MORTON. The fact also remains Mr. McCONNELL. Mr. Chairman, am not interested in them. I think that the present Lesinski bill as it is now will the gentleman yield? the gentleman from North Carolina is before us was never voted out or dis­ Mr. LANHAM. I yield to the gentle­ right in one contention of his, and I cussed at a full committee meeting of man from Pennsylvania, for a question. would vote for such an amendment. I the House Committee on Education and Mr. McCONNELL. May I clear up refer to an amendment that would strike Labor. one thing? I think there has been a the provision in the ·bill making it a Mr. JACOBS. That is only true in a general impression spread abroad that criminal offense to violate any rule or technical sense. The greatest portion of there was a meeting of the committee on regulation made by the Administrator of the provisions, of course, were discussed H. R. 5856, and that the majority mem- the Wage-Hour Act. and voted out. Those changes which I . bers of the committee approved the bill I believe it is absolutely necessary that am talking about were not, that is true, after the minority members had seen it. the Administrator have the right to make. I will grant you. I had never seen the bill until it was put rulings so as to clarify for people who Mr. MORTON. The fact further re­ into the hopper, and we have had no apply to him the meaning of certain por­ mains, if the gentleman will yield fur­ discussion at any time about it. tions of the bill and the application of ther, that it is very doubtful that it would 11134 CONGRESSIONAL RECORD-HOUSE. AUGUST 9 ever have been reported out of that Mr. ANDERSON of California. Mr. compromise between progress and reac­ committee. Chairman, the headlines in Monday's tion; and it suffers from the defects and Mr. JACOBS. I do not subscribe to Washington Post, with reference to the the virtues of all compromises. that view at all. Ecuadoran rnrthquake, read: "Four Broadly speaking, I deplore all the con­ Mr. KEEFE. Mr. Chairman, will the thousand six hundred dead, United cessions in the bill made to the dead gentleman yield? States flies quake aid.''· The Monday hands of Adam Smith, and I applaud all Mr. JACOBS. I yield to the gentle­ Evening Star carried the following head­ the provisions which represent progres­ man for a question. lines: "United States plans air lift for sive thinking in industrial economics. Mr. KEEFE. Would the gentleman in­ quake area.'~ All of us remember how I support the bili as presented by the dicate what the specific concessions were, the citizens of the Un.ited States sup­ industrious members of the majority of and to whom they were made, as a result ported the air lift to Berlin, and many the Committee on Labor and Education, of this conference which resulted in the others.will recall the immediate response and I shall resist with ali my strength final bringing out of the second Lesinski to the call for help from the victims of every effort to · slice away its strong bill? - . the great Japanese earthquake in. 1923; points, or to substitute another measure Mr. JACOBS. Not in 5 minutes; I can­ Mr. Chairman, all of these· tremen­ for it; and I shall support any amend­ not. Of course, •the gentleman knows dous efforts are demonstrations of the ments which seem to me to strengthen that I cannot. · great humanitarian heart of America. the coverage and enforcement of the Mr. KEEFE. Would the gentleman They indicate how speedily and efficiently Fair Labor Standards Act. · specify them? this country can respond to pleas for ONE DOLLAR AN HOUR BASIC NEED help from any quarter of the globe. Mr. JACOBS. As I said, the gentle­ I had hoped sincerely that the com­ man knows that I cannot do it in 5 They demonstrate our ability to do · the seemingly impossible when it" must· be mittee would see fit to establish a wage minutes. floor of $1 an hour, which is a basic need I presume, when we read the bill, that done in order to insure assistance to the needy and distressed citizens of almost at this time. we will discuss the specific provisions. This would have been good economics. I will discuss one, if the gentlemari will any country in the world. But, Mr. Chairman, what is being done Believe it or not, the days when Adam let me proceed. There has been so much Smith was the prophet of a new order talk here· about this matter of rule mak­ to assist over a half million American citizens who are today suffering untold are gone. In his day and for his times ing. Let us examine it and see exactly he was a prophet of high honor, not only what it is. Under a law of this kind we hardships as the direct result of a Com­ munist inspired and Soviet directed in his own country but in every other get into some very complicated situa­ country; and I am not belittling the tions. For example, in the bill H. R. 858, blockade of the Hawaiian Islands? What is being done to terminate a paralyzing service he did for the kind of business w ..! had to define the regular rate. enterprise which spread the industrial When we defined "regular rate," we blockade of the port of Honolulu, con­ ceived and directed by one Harry Bridges, revolution through the world. found sometimes we collided with bonus What some, perhaps many, of us and other good faith plans, and em­ who is now under indictment by the Government of the United States for cannot realize is that nothing stands ployer anff employee do not know still, and we have passed through another whether they are under the provisions of perjury in connection with his applica- tion for citizenship? . · . industrial revolution into a period when the law. So the Secreta~· y is given rule­ Every American citizen applauds the small individual enterprises in free com­ making powers. Those people who are petition, untrammeled by Government talking about these rule-making powers efforts of our Army and Navy air arms to supply the citizens of the ._ disaster regulations, face extinction unless pro­ would have you believe that what . the· tected by Government against the drive Secretary says is final, that he makes the areas in Ecuador with immediate and ef­ fective aid. Every citizen takes pride in toward bigness, while the workers must law, and that you will go to jail if you do have the protection of Government to not comply.with it. the fact that the air lift broke the back maintain the consumption on which What is it actually? He makes a rul­ of the Russian blockade of Berlin. By the same token, I am sure that almost business itself depends. ing. If the employer complies with that BIG BUSINESS DOES NOT PHILOSOPHIZE ruling the employer cannot be held liable, every American citizen hangs his head notwithstanding the fact that later a in shame because our Government can­ As every man knows who has been court may decide that the Secretary's not or will not, take such steps as are nec­ caught up in any great corporate enter­ ruling was erroneous, and under the in­ essary to bring an end to the Hawaiian prise, no matter in what capacity, there tent of the law the employer would have shipping tie-up. is a self-devouring compulsion which been otherwise liable. The people of Hawaii are Americans-­ forces constant expansion, absorption of In the interests of clarity, this rule­ they are a part of the United States. rivals, extension into new fields, expan­ making power is given to the Secretary They may some day be citizens of the sion into r 3W territories. so that as the court.:;. construe and inter­ forty-ninth State. Their Delegate in Big business does not philosophize. It pret this law over the years, the employ. Congress has niade eloquent pleas_ for merely grows bigger, and expansion be­ ers will not be subject to liability which their assistance, tpeir cost of living, has comes an end in itself. There is a some­ they, in good faith, thought they were risen to fantastic heights, and yet what what terrifying analogy here with the not subject to at the time the transac­ has been done to help them out of their militant nationalism which brought Hit­ tions took place. dilemma? Nothing. The President and ler into brief power. the Department of Labor apparently ig­ The obverse is that this tremendous Nothing could be fairer, when you are nore-the issue. I say apparently, because dealing with a situation as complicated energy of expansion, guided by .public nothing is done. interest, can be channeled into public a:; that in the wage-hour law. I simply Why not recognize the Hawaiian strike point that out. That is one of the things good. for what it is-the first step in Commu­ The Fair Labor Standards Act is an that has been held up as a horrible bug­ nist domination of the shipping industry excellent example of how public regula­ aboo with reference to this bill, which of the United States? Why not move tion in the public good can maintain a was worked out by these fine gentlemen to break the blockade now before it dynamic free economy in a political de­ from all sections of the country. reaches the Pacific coast, the Gulf coast, mocracy, and avoid the deadfalls of au­ The CHAIRMAN. The time of the the Atlantic coast? Why not institute thoritarianism, all within the frame­ gentleman from Indiana tMr. JACOBS] an air lift to Hawaii and demonstrate to work of our tradition of democratic proc­ has expired. _ the world that we can fly over the block­ esses and a truly free enterprise system. Mr. ANDERSON of California. Mr. ade in Honolulu as readily as we flew over This is one of the New Deal measures Chairman, I move to strike out the last the blockade of Berlin? which, however, much maligned by big word, and I ask unanimous consent to Why do we not give some -considera­ business, is actually a firm bulwark of de­ speak out of order. tion to our own American citizens while fense for free enterprise as we mean the The CHAIRMAN. Is there objection we are saving the rest of the world? term in this country. to the request of the gentleman from THIS IS A COMPROMISE SOMETHIN.Q IS BETTER THAN NOTHING California? Mr. KLEIN. Mr. Chairman, the bili That; Mr. Chairman, is why I had There was no objection. under debate here today is obviously a hoped that this bill, as finally reported, 1949 CONGRESSIONAL. RECORD-HOUSE 11135 would be bold and brave in its extension and Air Force Vitalization and Retire­ Federal service would establish an unde­ 'of coverage, would not retreat, and would ment Equalization Act of 1948." sirable precedent. In defining the term establish a dollar an hour as a minimum The e1f ect of this proposed legislation ."Federal service," the Congress ex­ legal wage. would be to amend sections 302 and 303 cluded all service performed without That it falls short of my hopes will not of the Army and Air Force Vitalization Federal recognition. It seems to me that restrain me from voting for its passage, and Retirement Equalization Act of 1948 this intent is clearly indicated by cate­ for I believe that any progress at all is June 29, 1948, those provisions of title other State militia to those performed hunger, and the committee has given us III requiring Reserve personnel to earn in: much more than crumbs. • credits for retirement. The bill also (1) The National Guard of the United A 75-cent minimum, in the context of would amend section 306 to include with­ States; .present-day living costs, is the irreduci­ in the definition of Federal service, for (2) The National Guard while in the serv­ ble minimum, and I believe that Mem­ the purposes of title III, service in "the ice of the United States; :bers would be ashamed to propose less in National puard or Organized Militia J>rior (3) The federally recognized National public. to June 3, 1916." Guard prior to 1933; The absolute prohibition against child The first three sections of this bill are ( 4) A federally recognized status in the labor in interstate commerce in this bill without objection. The Congress and National Guard prior to 1933. is a vast gain-had it not been weakened the members of all Reserve components Further, section 306 (e) of the act by several blanket exemptions, I should may be assured that I would approve a specifically excludes from Federal serv­ have called that prohibition the greatest bill limited to the purposes of these sec­ ive, service in the inactive National victory for progress in this Congress. tions which seek affirmatively to correct Guard or Air National Guard, or in a There are other blanket or partial ex­ an effect of the 1948 Retirement Act nonfederally recognized status in the Na­ emptions which can be regarded only as that was not intended. tional Guard or Air National Guard. concessions to backward thinking. When the act was passed, it was be­ If such service should be considered The provisions of this bill cannot and lieved that adequate authority had been creditable for Federal retirement, ft must not be regarded as sops to labor granted to the Secretaries of the Army, would be difficult to restrict a further to match the businessman's paradise of · the Navy, and the Air Force to defer the broadening of the base of the 1948 Re­ ECA; they must be regarded as bulwarks· effective date for earning retirement. tirement Act. Presumably, there would of a stable economy, one of the means by credits for a sufilcient length of time then be added other costs far in excess which we guard against economic retro­ to permit institution of programs under of those contemplated at the time of its gression and depression. which active Reserve personnel could enactment. This is the kind of economic planning qualify for retirement credits. However, The basic purposes of title III of the for a strong and prosperous dE:mocracy a ruling issued by the Comptroller Gen-· Army and Air Force Vitalization and Re­ for which the Truman Fair Deal stands, eral in November of 1948 made the effec­ tirement Equalization Act of 1948 we•~ to which it is committed, and for which tive date of the act June 29, 1948, some (1) to provide an incentive to Reserve every American who believes that the way 6 months earlier than adequate programs personnel to maintain a degree of mili­ to defeat communism is to extend and for Reserve training were generally avail­ tary proficiency which would assure a strengthen democracy will work and vote. able. As a result many Reserves were strong and healthy Reserve force in time I believe implicity that this bill will denied the opportunity to complete a of future emergency and (2) to recog­ pass without serious weakening, and I year of satisfactory Federal service as nize past service which had been per­ am even hopeful that its weak spots may defined in the law. formed by members of the Reserve in be strengthened when it is read for Section 4 of H. R. 5508 was not con­ amendment. tained in this legislation when it was behalf of the Federal Government with­ Above all, I am certain that after hav­ under consideration by the House Armed out expectation of future benefit. If I ing heard the debate on the bill only a Services Committee. This section was were to approve H. R. 5508, I believe my small and intransigent minority can added as an amenqment, offered on the action would defeat both these basic pur­ continue to support the inept proposals floor o'f the House of Representatives, in poses. for a flexible escalator type of wage pro­ the belief that it would affect only six HARRY S. TRUMAN. vision-that is no floor; that is a trap­ officers of the National Guard. Further THE WHITE HOUSE, August 9, 1949. door to depression. study, however, indicates that this sec­ Mr. LESINSKI. Mr. Chairman, I tion would increase the number of per­ The SPEAKER. The objections of the move that the Committee do now rise. sons immediately eligible for retired pay President will be spread at large upon the Tbe motion was agreed to. by a known number of 250, and would, by Journal. Accordingly the Committee rose; and crediting additional years of non-Federal Without objection, the message and the the Speaker having resumed the chair, service to certain personnel nov.: on the bill will be referred to the Committee on Mr. CooLEY, Chairman of the Committee retired list, increase the pay of 650 others. Armed Services and ordered to be of the Whole House on the State of the These costs would total $412,300 per year. printed. 1 Union, reported that that Committee, I am advised that ::i _ many as !?00 addi­ There was no objection. having had under consideration the bill ·tional persons might also ·be made im­ BUREAU OF THE CENSUS-VETO MESSAGE July 1947. The price original decisi'On was sound, and in con- given permission to extend his remarks today and for the past several months sonance with an equally sound policy of in the RECORD and include an address by has 'Qeen around 16% cents per pound bringing about economy in Government Hon. CLIFFORD DAVIS. which is substantially lower than the operations wherever possible. Mr. BECKWORTH asked and was giv- prewar price of this commodity. Public rn my 1948 budget message I stated, en permission to extend his remarks in Law No. 24 represented the first step "While it is not sound public policy to the RECORD. • taken, after almost 6 years of complete charge for all services of the Federal Mr. PHILBIN asked and was given per­ Government control, to restore the sys­ Government on a full cost basis, and mission to extend his remarks in the tem of free enterprise in the rubber busi­ many services should be provided free, RECORD in two instances and include two ness, and has resulted in the savings of the Government should receive adequate newspaper articles and editorials. thousands of dollars to our taxpayers. compensation for certain services pri- Mr. SMITH of Wisconsin asked and Subsequently, on March 31, 1948, the marily of direct benefit to limited was given permission to extend his re­ Eightieth Congress enacted Public Law groups." I continue to hold this beUef, marks in the RECORD and include a state­ No. 469, ref erred to as the Rubber Act and in this instance there seems to be no ment by General Fellers. of 1948. The following statement, con­ justification for abandoning present Mr. PATTERSON asked and was given tained in the declaration of policy, is practice. Approval might well establish permission to extend his remarks in the significant: a precedent jeopardizing the established RECORD and include a copy of the resolu­ It is further declared to be the policy of principle of charging fees for special tion adopted by the Connecticut Council the Congress that the security interests of services. of the Women's Republican Club. the United States can and will best be served Tl'le fee charged in this case is nom- • Mr. FARRINGTON asked and was by the development within the United States inal. The Government already bears the given permission to extend his remarks of a free, competitive synthetic-rubber in­ cost of maintaining the necessary records in the RECORD and include an act passed dustry. In order to strengthen national se­ and the applicant pays only for the di- by the Legislature of the Territory of curity through a so~nd industry, it ·is essen­ tial that Government ownership of produc­ rect cost of searching the records and Hawaii. tion facilities, Government production of transmitting the information. Mr. SANBORN asked and was given. synthetic rubber, regulations requiring man­ It is difficult to estimate the cost to the permission to extend his remarks in the datory use of synthetic rubber, and patent Government of supplying this informa- RECORD, pooling be ended and terminated whenever tion free of charge to the groups desig- Mr. JAVITS asked and was given per­ consistent with national security, as pro­ nated in the bill. The number of requests mission to extend his remarks in the vided in this act. might be expected to rise significantly RECORD in three instances and to include Generally speaking, the Rubber Act of with the eliminatior: of the fee so that the extraneous matter. 1948 contains three major provisions: future work load for this operation could Mr. SHAFER asked and was given per­ First. The maintenance at all times be uncertain. However, the Census Bu- mission to extend his remarks in the within the United States of rubber-pro­ reau estimates that the additional cost RECORD in two instances. ducing facilities having a rated produc­ would approximate $136,000 annually. OUR RUBBER PROBLEM Although this is not a large amount, it is tion capacity of not less than 600,000 an unnecessary expenditure of public Mr. SHAFER. Mr. Speaker, I ask long tons per annum of general-purpose funds. unanimous consent to address the House synthetic rubber, and not less· than 65,000 HARRY s. TRUMAN. for 1 minute. • long tons per annum of special-purpose THE WHITE HOUSE, August 9, 1949. The SPEAKER. Is there objection to synthetic rubber; the request of the gentleman from Mich- Second. The facilities in operation by The SPEAKER. The obfoctions of the igan? the Government or private persons shall President will be spread at larg~ upon There was no objection. produce annually not less than one-third the Journal. · Mr. SHAFER. Mr. Speaker, although of the rated production capacity of Mr. MURRAY of Tennessee. Mr. no rubber legislation will be considered 665,000 long tons; and Speaker, I move that the bill a:nd mes- at this session of the Congress, I should Third. . The President is authori:ld to sage be referred to the Committee on like to review the existing situation with issue such regulations as are required to Post Office and Civil Service and ordered respect to this commodity which so vi- insure the consumption of the tonnage to be printed. , tally affects not only our .national econ- referred to above, with the proviso that The motion was agreed to. omy, but also the everyday life of most any mandatory consumption in excess EXTENSION o:F REMARKS of our citizens and to call to your at­ of 222,000 long tons of synthetic rubber tention several phases of our present per annum shall not be more than is Mr. MANSFIELD. Mr. Speaker, I ask program which I feel constitute a cause deemed necessary in the interests of na­ unanimous consent that ·my colleague for serious concern. tional security and the common defense. the gentleman from Illinois [Mr. GoR- The Eightieth Congress, following ex­ The act further stresses the impor­ DON], who has been called home to Chi- haustive hearings conduct by a sub­ tance of and necessity for a stock pile cago on account of the death of his committee of the Armed Services Com­ of natural rubber. brother, be permitted to extend his re- mittee of the House of Representatives, In enacting both Public Law 24 and marks in the RECORD and include an arti- of which I had the honor to serve as Public Law 469, it was clearly the inten­ cle by Mr. Irving Pfiaum, of the Chicago chairman, enacted Public Law No. 24- tion of the·Congress that all Government Sun-Times. . referred to as the Crawford bill-which activities in rubber should be terminated The SPEAKER. Is there objection to removed all Government controls over at the earliest possible moment, not in­ the request of the gentleman from Mon- the import and sale of natural rubber. consistent with the requirements of na­ tana? This action was taken despite the oppo- tional security, and the Rubber Act of There was no objection. sition of many members of the rubber 1948 was designed only as interim legis­ Mr. HOLIFIELD asked and was given manufacturing industry who voiced dire lation pending the attainment of this ob­ permission to extend his remarks in the predictions that the price of natural jective. RECORD and include an editorial. rubber would double, triple; and complete The authority conferred upon the Mrs. DOUGLAS asked and was given chaos would result therefrom. The wis- President by the Rubber Act of 1948 was permission to extend her remarks in the dom of this legislation has been more delegated by him to the Department of 1949 CONGRESSIONAL RECORD-HOUSE 11137 Commerce, and, pursuant thereto, the further into the future the date of the and likewise that such industry should rubber-manufacturing industry was re­ return of the rubber business to free be privately owned and operated. The quired to consume 276,000 tons of syn­ enterprise. progress which has been made in the.de­ thetic rubber during the year 1948, an During all of the deliberations in which velopment of synthetic rubber is truly re­ excess of 54,000 tons over and above the I' have participated relative to the rubber markable and I find the following state­ minimum amount prescribed by law. In situation, one moot question has re­ ments by leaders of the rubber manufac­ addition thereto, the rubber-manufac­ mained .unanswered: How much syn­ turing industry most gratifying: turing industry consumed 167,000 tons of thetic rubber will be consumed annually Low temperature GR-Sis approximately 5 synthetic rubber on a purely voluntary · in the United States on a purely volun­ percent better than natural rubber for tread basis, making a total for the year of 443,- tary basis, with no Government controls wear in passenger car tires. The properties 000 tons, or approximately 100 percent or restrictions? In considering rubber of newly developed furnace blacks comple­ more ment those of "cold rubber" and make pos­ than the minimum amount which legislation next year, the answer to this sible further improvements in tread wear it was deemed necessary to produce and question will prove of material value. ranging from 20 to 30 percent. (H. S. Fire­ · consume in the interests of national se­ Today we have an opportunity to secure stone, Jr., chairman, the Firestone Tire & curity. this information at no sacrifice to na­ Rubber Co., sixth meeting, International Statistics prepared by the Department tional security. I have carefully reex­ Rubber Study Group.) of Commerce in June 1949 estimated amined the Rubber Act of 1948, which There are certain properties common to all that the consumption of all types of rub­ I helped to write, and am definitely of synthetic rubbers which, at the moment, are ber in the United States during the year in­ superior to natural rubber and which help to the opinion that the wording thereof, influence the choice of material to be 1949 woulc total 980,000 long tons, . of sofar as relates to the issuance of regula­ used. • • • The extreme cleanliness en­ which 570,000 tons would be represented tions to carry out the purposes of the act, joyed by all synthetics is an obvious advan­ by natural rubber and 410,000 tons by ts permissive rather than mandatory, tage in the production of many specialty synthetic rubber. For the year 1950 it which, however, was the definite intent goods. • • • The uniformity in plas­ was estimated that the United States of the Congress. In other words, if con­ ticity and in rate of cure is a most important would consume 614,000 tons of natural ditions warrant and the requirements of attribute of these rubbers. • • • An· ttnd 332,000 tons of synthetic rubber, an national security are not impaired, regu­ other important consideration to the manu­ over-all total of 946,000 tons. facturer is the existence of many different lations which have been issued may be types of polymers which permit choice of a Despite the substantial estimated con­ terminated or suspended without violat­ material tailor-made to suit individual and sumption of synthetic rubber in the ing the law in any way. In my judgment, product specifications. (George M. Tisdale, United States, which should materialize it will be entirely in order to immediately vice president, United States Rubber Co., unless there is a. complete collapse of the suspend all mandatory requirements and sixth meeting, International Rubber Study rubber-manufacturing industry, the De­ only retain a stand-by order which can Group,) partment of Commerce is presently forc­ be invoked in the event that synthetic · Butyl's superior ability to retain air and to ing the consumption of 268,000 long tons withstand for long periods the deteriorating consumption falls· below the security effects of sunlight, weather aging, acids, of synthetic rubber through mandatory level. This procedure should present no alkalis, oxygen, ozone, and fatty acids, com­ use regulations, and in arriving at this administrative problem, nor will it re­ pared with other rubbers, make it a very :figure apparently no consideration has quire any legislative action, since the law desirable material. • • • Air retention been given to the substantial voluntary under which we are presently operating of butyl tubes is many times better than that use of this material. will not expire until June 30, 1950. of tubes made of any other known material. Based upon the statistical data out­ Through this process the Congress will This property is creating a growing preference lined above, and actual experience to secure information based upon actual for butyl tubes among· motorcar owners date, it does not appear that the manda­ and commercial operators. (William O'Neil, experience and· an opportunity will be president, General Tire & Rubber Co., sixth tory use of synthetic rubber, as presently afforded to study the synthetic-rubber meeting, International Rubber Study required, can be justified since it seems program during a period of free enter­ Group.) obvious that the consumption in both prise, all of which will be most helpful For the first time crude rubber faces a 1949 and 1950 will be substantially in in formulating a future rubber policy. competitor in American-made rubber which excess of the minimum amount required In 1941, as a wartime measure, the has earned a position on the basis of cost, by the Rubber Act of 1948. As a mat­ Government entered into a patent pool­ availability, and proven utility. The exclu­ ter of fact, consumption of synthetic rub­ ihg agreement with industry to provide sive position which crude rubber enjoyed un­ til near the end of World War II is now a ber during the first 6 months of the cur­ for the exchange of technical -informa­ thing of the past. (John L, Collyer, presi­ rent year was in the neighborhood of tion relating to the production and de­ dent, B. F. Goodrich Co., New York Journal 200,000 tons. Recently this question velopment of synthetic rubber. Recog­ of Commerce, June 24, 1949.) was fully discussed at a conference be­ nizing the desirability of giving full reign We now have a low-temperature rubber tween Government officials and repre­ to private industry arid also the fact that which is over 30 percent better in the large sentatives of the rubber industry and as private research was materially retarded consumption products, such as tire treads, a result thereof the representative of in­ by the existence of this agreement, the than natural rubber. • * * For the first time in its 150 years of effort, the finest dustry unanimously recommended that Congress specified in the Rubber Act of grades of plantation rubber or fine para bas the amount of the presently required 1948 that it should be terminated as had its most serious threat. (A. L. Freed­ mandatory use be substantially reduced. early as possible, not inconsistent with lander, president, Dayton Rubber Manufac­ A minority opinion was also expressed national security requirements. Al­ turing Co., Lockwood's Monthly Rubber Re­ to the effect that the mandatory use though this action was taken more than. port, November 15, 1948.) should be completely suspended. It 15 months ago, I am amazed to learn that is my understanding that the minority the agreement still exists. Seriously but The foregoing are only a few of the opinion has the full support of the regretfully, there exists in my mind expert opinions which have been ex­ Department of State. Quite frankly, definite reservation with respect to the pressed with respect to the quality and I am somewhat at a loss to under­ administration of the act from the desirability of synthetic rubber. Not be­ stand the reasoning of the Govern­ standpoint of returning the rubber busi­ ing a technical man, I accept these state­ ment agencies responsible for the exist­ ness to private industry as speedily as ments at full value. It must be most ing regulations and fear that considera­ possible and it occurs to me that the satisfying to every American citizen to ·tions other than national security have position taken by some of the agencies of learn of the tremendous advancement been responsible therefor. Let no one the Government may be construed as be- , which has been made in the development misunderstand my position, the national ing in contravention to the wishes of the of this product which is available within security of the United States is my first Congress. our own borders. Likewise the Members and primary concern, but I do feel very There is complete accord both on the of the Congress, who must next year con~ . strongly that the present mandatory reg­ part of Government and private industry sider additional rubber legislation, ulations are more severe than the situa­ with the principle that a technologi­ should be most happy to receive the tion warrants and that the continuation cally advanced and rapidly expandible reactions of the leaders of the rubber thereof contributes materially to the un... synthetic-rubber industry should and manufacturing industry from which it rest in producing countries and extends will always be maintained in this country appears reasonable to assume that the 11138 CONGRESSIONAL RECORD-HOUSE AUGUST 9 disposal of the Government-owned syn­ It is recognized that certain of the Mr. Hawkins further stated that if the thetic-rubber plants will no longer pre­ strategic and critical materials designed Eighty-first Congress appropriated the sent the problem with which we have for stock-pile purchase are in short sup­ funds which had been requested for heretofore been confronted. Equally en­ ply and difficult to procure. However, stock-piling purposes, the program would couraging is the fact that during the natural rubber is and has been obtain­ be one-half completed by June 30, 1950. year 1948 as well as at the present time, able in substantial quantities at reason­ Since the Strategic and Critical Ma­ the rubber manufacturing industry is able prices since the inception of stock­ terials Stockpiling Act was enacted 3 purchasing substantial quantities of syn­ pile buying, but the Government has not, years ago, it does not appear, from the thetic from the Government on a vol­ to the largest extent possible, availed standpoint of the national security of untary basis, despite the fact that nat­ itself of the opportunty to secure this the United States, that an enviable rec­ ural rubber is available at a substantially material. As a matter of fact, for pe­ ord has been made, in view of the fact, lower price. All in all, a very encourag­ riods of several months at a time during that based upon the foregoing state­ ing situation. the past 2 years no rubber was pur­ ment, approximately 4 years will be re­ Mr. Speaker, unhappily we in this chased, although available and freely quired to complete 50 percent of the country are blessed with shor~ memories. offered. over-all program. Due to the foresight of an outstanding It is neither intended nor suggested Even the achievement of this half­ American, the Honorable Jesse H. Jones, that the Government should enter into way goal now appears questionable. In of Texas, then Chairman of Reconstruc­ an intensive buying program of any stra­ June both branches of the Congres.1; tion Finance Corporation, and the effi­ tegic or critical material, and by such passed appropriation bills which provid­ cient operations of Rubber Reserve Com­ action unduly affect the market price ed funds for stock-pile buying extending pany with the full cooperation of the thereof. On the other hand, it has been through the fiscal year 1950 in the exact rubber manufacturing industry, this amply demonstrated that an orderly amounts recommended by both the Mu­ Government accumulated a stock pile of day-to-day buying program does not ad­ nitions Board and the Bureau of the natural rubber prior to Pearl Harbor of versely affect the market price of a com­ Budget and such bills have been signed sufficient tonnage to satisfy military and modity, but tends to serve as a stabilizer. by the President. Recently, however, civilian requirements on a wartime basis Certain it is that up to the present time the Senate Appropriations Committee in pending the development of our syn­ the procurement of rubber for the stock its deliberations on the over-all military thetic-rubber industry. Without this pile has cost the taxpayers thousands of appropriation bill for the fiscal year 1950 stock pile, one shudders to speculate dollars due to the· inability of the Bu­ attached a rider thereto reducing the upon what might have been the outcome reau of Federal Supply to accept offers amount of the previously approved of World War II. While the scars of war at extremely favorable prices. This, stock-piling appropriation by $275,000,- were still fresh the Seventy-ninth Con­ however, is no reftection upon the Bu­ 000. While this reduction furnishes a gress, on July 23, 1946, enacted Public reau of Federal Supply, since it must cause for alarm, far more serious in my Law 520, referred to as the Strategic and operate within the framework of direc­ opinion is the expression of policy agreed Critical Materials Stock Piling Act, the tives issued by the Munitions Board. to at the same time that the purchase purposes of such act being to accumu­ Apparently, the Munitions Board, of materials for the stock pile should be late in this country a stock pile of stra­ which determines, after consultation with concentrated upon commodities avail­ tegic and critical materials for the pro­ other governmental agencies, the quan­ able within the United States. No one tection of the national security of the tities of each of the 69 strategic and is more interested than I in our dome·s­ United States. critical items which shall be purchased, tic economy. However, it is far beyond What happened to date? and thereafter issues directives to the my conception to understand this rea­ Since the Congress recognized the Bureau of Federal Supply, concentrates soning. The very essence of stock pile necessity for a stock pile of strategic and its efforts on the procurement of ma­ for national defense is to procure ma­ critical materials, it must obviously fol­ terials which are not readily available, terials not available within our own low that in the administration of the act and bypasses rubber, which, although borders, the supply of which may be com­ the Congress intended that the stock pile in reasonably plentiful supply, is one of pletely cut off in the event of a national should be procured at the earliest possi­ the most important commodities from emergency. I sincerely trust that this ble moment. The method of procure­ the standpoint of national security. body will very carefully examine the sit­ ment which has been and is being fol­ Recently a Member of the Senate stated uation before giving its concurrence to lowed at the present time is not designed that our stock pile of natural rubber the Senate action. to nor will it achieve this result. totaled 370,000 tons, a figure far short of The present operations of the stock­ On July 18, 1949, Gen. LeRoy Lutes, our ultimate goal. It might well be piling program may be attributed to who directs the stock-piling program.s pointed out in this connection that in­ either the failure of the administrative of the Munitions Board, in testifying be­ cluded in this figure is approximately agencies of the Government, including fore a House Public Lands Subcommittee, 250,000 tons of rubber which was trans­ the Bureau of the Budget, to request the stated that of the 69 materials being ferred from stocks accumulated by Re­ Congress for sufficient appropriations to stock piled, 40 are not available in the construction Finance Corporation. purchase all of the strategic and critical United States, and that of these rubber The stock-piling program seemingly is materials required for the stock pile as is probably the most important. being operated on the basis of a balanced they become available, or it may be due There can be no question in the mind stock pile, the theory being that the to poor administration of the provisions of any unbiased and informed person re­ stock pile loses its over-all value if, in of the act. Obviously, the Congress can­ specting the value of natural rubber from the case of an emergency, the Govern­ not, due to the tremendous tasks which · the standpoint of national security, and ment has, for illustration, a 5-year sup­ confront it and the continuous demand such statement reftects in no way upon ply of rubber and only a 2-year supply of upon the time of its Members, police each the Government-owned and operated manganese. As a practical matter, this piece of legislation which it passes. In synthetic rubber indµstry. This indus­ approach may be sound, however it ap­ instances, however, involving the secu­ try is still in its infancy and although pears penny-wise and pound-foolish, rity of the United States, which is true of tremendous technological progress has knowing that the ultimate stock-pile ob­ the present situation, an investigation been made and continues to be made, it jective involves the procurement of a appears to be in order. · remains to be. proven that synthetic rub­ certain quantity of rubber, not to obtain While I am not an alarmist, I cannot ber can successfully compete with nat­ this material as speedily as possible. overlook the fact that during the past ural· rubber in a free-enterprise system On June 21, 1949, E. H. Hawkins, Act­ year Russia, which represents the most with no protective government controls. ing Chief of the Office of Materials Re­ serious threat to the peace of the world, This situation alone should emphasize sources of the Munitions Board, speak­ purchased in excess of 125,000 tons of the urgency of procuring the stock-pile ing before the thirty-fourth annual natural rubber in the markets of the Far · requirements of natural rubber as rap­ congress of the National Association of East. It is both significant and disturb­ idly as possible. Do not overlook the Purchasing Agents, in Chicago, stated ing that Russia is continuing its buying fact th2.t we are discussing a commodity that the Government's stock-piling pro­ program, while the United States is not which must be transported over 10,000 gram was one-third completed, counting today purchasing one pound of rubber miles of water to reach our shores. materials· on hand and orders placed. for our national stock pile. Further 1949 CONGRESSIONAL RECORD-HOUSE 11139 alarming is a report appearing in the gram may have already been more than countries cannot be overlooked. There press yesterday to the effect that during offset by the inroads of communism in never was a truer saying than "An ounce the current month Russia expects to Asia. The end is not yet in .sight and of prevention is worth a pound of cure." purchase 16,000 tons of rubber in the the clouds are slowly gathering. No one For scme time this matter has caused Singapore market. The foregoing facts can forecast the future. It appears cer­ me great concern and I have not only should furnish food for serious thought, tain, however, that if the present trend carefully analyzed the situation in my since, in my judgment, they represent a continues unchecked this Government own mind but have also discussed the distinct gamble with the national secu­ will, at possibly an early date, be called elements which are involved with well­ rity of the United States. upon for staggering amounts of financial informed individuals both in the rubber From time to time when natural rub­ aid which we can ill afford. A program industry and in the Government service. ber is discussed great emphasis is placed in Asia similar to uur European activities While I am not attempting to suggest upon the world cartel. Admittedly, prior would place upon this country a burden a panacea to cure all ills it is my con­ to World War II restriction schemes de­ which, if undertaken, could well wreck sidered opinion that the interests of this signed to control the price of natural our national economy. Another devel­ country can best be served by the adop­ rubber through controlled production opment which -confronts us and which tion of the following program which will were in existence in the Far East to the is fraught with serious possibilities is the not only be beneficial to us but will detriment of this Government and I present financial position of the British also assist the United Kingdom and subscribe most heartily to the premise Empire. Nothing can be accomplished strengthen the countries of southeast that we should take every step possible by dodging the issue. The picture is all Asia against the rising tide of commu­ to prevent a recurrence of this situation. too clear. Let us face the facts. Please nism: Personally, however, I see no cause for do not misunderstand my position; I First. Immediately resume the pur­ concern at the present time. Our syn­ am only attempting in a practical man­ chase of natural rubber for the Govern­ thetic rubber industry is establiched and ner to find a solution to a most dim.cult ment stock pile and acquire rubber as its value is recognized. Furthermore, the and serious problem. The national se­ rapidly as it becomes available until our complexion of the world rubber situation curity of the United States unfortunately stock-pile objective is attained~ and has undergone a complete change. cannot be confined to our own borders Second. Immediately suspend in en­ Whereas prior to ".Vorld War II the and the spread of communism in the tirety rubber order R-1 or substantially United States consumed the mafor por­ Far East as well as the financial position reduce the amount of the required man­ tion of the natural rubber produced in of our neighbors across the sea contain datory consumption of synthetic rubber. the world, during the year 1948 this fig­ a definite threat to our own well-being. Mr. Speaker, it may already be later ure declined to 41 percent and based It occurs to me that we can, at no great than we think. upon current statistics will be further sacrifice, make a substantial contribu­ EXTENSION OF REMARKS reduced to 37 percent in 1949. In other tion to the solution of the problem by the words, from the standpoint of world pro­ immediate inauguration of a stock pile Mr. D'EWART asked and was given duction we are today cast in the role of buying program of natural rubber. The permission to extend his remarks in the a minority rather than a majority con­ benefits of this action will be twofold: RECORD and include a resolution. sumption. On the other hand, it is self­ The United States will secure a necessary Mr. CASE of South Dakota asked and evident that to the extent this country and highly strategic commodity for its was given permission to extend his re­ imposes unnecessarily rigid restrictions, stock pile and at the same time woUld marks in the RECORD in two instances, in we invite the producing countries to in­ bolster the tottering dollar position of the one to include a report by Hon. HUGH voke retaliatory measures. Do not mis­ British Empire and create a healthier D. SCOTT, JR., to the Republican National understand me. I am not a commodity and happier condition in the rubber pro­ Committee. expert and therefore do not take the po­ ducing countries of the Far East. . Such Mr. LODGE asked and was given per­ sition that natural rubber should de­ a policy would not entail either a grant mission ~v .extern::: his remarks in the mand a higher price than the present or a loan of public funds. Contrariwise, RECORD in three instances and include ex­ market. I do, however, and always have it would represent an investment in a traneous matter. associated myself wholeheartedly with tangible asset-natural rubber. I feel Mr. WERDEL asked and was given the principle of free enterprise and the very strongly that serious consideration permission to extend his remarks in the law of supply and demand. Under these should be given to this matter without RECORD and include copies of a series principles every commodity will even­ further delay. This program can be in­ of five articles published in connection tually arrive at its proper price level. For augurated today at no cost to the Gov­ with the San Joaquin Valley water prob­ the edification of the Members of this ernment save from the standpoint of lem, notwithstanding the fact that it body, however, it is only fair to state invested funds, whereas if we delay exceeds the lim:i.t set by the Joint Com­ that to the best of my knowledge and be­ action until the lights go out in Asia, mittee on Printing and is estimated to lief, natural rubber is the only nationally I do not have the temerity to speculate cost $266.50. used commodity which is today selling as to the extent of the ultimate financial Mr. WOLVERTON asked and was for substantially less than the prewar burden which will be placed upon our given permission to extend his remarks price. FUrthermore, I do not believe that already strained resources. in the RECORD and include an editorial: foreign producers expect a fantastic price During the past year we have secured Mr. RICHARDS asked and was given for natural rubber. The criticism which a substantial amount of natural rubber permission to extend his remarks in the is directed at this Government is based for our stock pile by the use of counter­ RECORD and include an editorial. upon· the fact that due to restrictions part sterling funds accumulated in Eng­ Mr. BOYKIN asked and was given per­ which we have imposed, it is not possible land through the operations of the Eco­ mission to extend his remarks in the for natural rubber to compete with syn­ nomic Cooperation Administration . . So RECORD anChina are a source of the gravest con­ gram which in my opinion should be unanimous consent to take from the cern to all of us and the unrest and in­ corrected. My conclusions are based Speaker's table the bill June 9. The only dif­ tinuation of the "watchdog committee" feiture, as the result of that imperialism, ference is that the gentleman from Ohio that is set up to watch the expenditure of all the freedoms of those people. [Mr. VoRYS] on that occasion asked for of funds under ECA? Where is freed om of speech ~ n Russia to­ $244,000 whereas the Senate now requests Mr. TABER. That is right. It is the day? And, from Russia to Czechoslo­ $344,000-$100,000 more-which makes .only chance the Congress has to know vakia where is there freedom of worship? it all the more objectionable. what is going on in this operation. No, my friends, this ECA program is When offered in the House on June 9, Mr. KEEFE. The G.uestion we will be not imperialism; it is not militarism. the amendment was rejected by a 3 to 1 called upon to vote on in just a moment I quote a simple fact from Pravda about vote. The Senate accepted the judgment is whether or not we want to continue 3 months ago, that the Russian budget of the House and all provision for the the operations o.f the "watchdog com­ calls for an expenditure for their army so-called watchdog committee was elim­ mittee," which has been created by an and their air force and their navy of inated. amendment introduced by the other body almost 30 percent of the total Russian We ~iad every reason to suppose the and for which funds were provided. Is budget. And, remember that the Rus­ issue was definitely disposed of. It is res that not the situation? sian budget is equivalent to the total judicata. And the managers on the part Mr. TABER. Yes; that is the situa­ national income. It is not as our budget, of the House should not be required to tion. limited to Government services. The churn over all this obsolete material Mr. KEEFE. I wish the gentleman Russian economy is spending almost 30 again in conference or on the floor. It would advise the House of the necessity percent of their total national income on should be disposed of once and for all for continuing the "watchdog commit­ their militarism. without being sent again to conference. tee." The small-arms aid, without going into Suffice to say that the committee has Mr. TABER. I wanted the House to the details of that program, that we are thoroughly studied the subject and we ha':'e a picture of the $5,000,000,000 offering to the members of the Atlantic can say authoritatively that the watch­ which needs to be watched, and the ex­ Pact nations, is to help them def end dog committee has never saved a single penditure of which is so very important themselves ~gainst this very militarism dime that would not have been saved had to be done properly and effectively. in the east: Let us place the respon­ the committee never been in existence. The "watchdog committee" has done sibility for world tension where it belongs. Every dollar spent by the watchdog com­ very considerable, effective work, espe­ Let us cut aside all the beautiful red mittee, and on the watchdog commit­ cially in connection with the preserva­ tape that they are trying to throw around tee, has been thrown away. And in times tion of those plants in Germany which these very simple and very humane pro­ like these, in which expenditures are were so badly needed to restore the econ­ grams. Let us in America realize and running from Qne and a half billion to omy of Germany so that we could get to let us proclaim to the world, in contra­ two billion dollars behind revenues, we the point where some day we might be diction to the gentleman from New York cannot afford even this mild extrava­ able to have these people self-supporting gance. so that we could get out of Germany. [Mr. MARCANTONIO]' that the purpose be­ Mr. Speaker, I yield 5 minutes to the Mr. SHORT. Mr. Speaker, will the hind the United States policy of help­ gentleman from New York [Mr. TABER]. gentleman yield? · ing those people in the world who want Mr. TABER. Mr. Speaker, this bill Mr. TABER. I yield. to help themselves to remain free from involves approximately $5,000,000,000. Mr. SHORT. When this bill passed Communist imperialism, is a most Amendment No.1 adds $344,000 for the the House, much as I have disagreed friendly and unselfish purpose; the most so-called "watchdog committee." with certain members of the Committee humane that any country has ever held Amendment No. 3 increases the on Foreign Affairs, I thought they were out to sister nations in the history of amount appropriated for the ECA by dead right in insisting on having this the world. $59,910,000. "watchdog committee," because the 1949 CONGRESSIONAL RECORD-HOUSE 11143 amount of money necessary to conduct Administration." It is 152 pages long. Mr. PHILLIPS of California. Mr. the work of the "watchdog committee" It is filled with statistics and tables of all Speaker, will the gentleman yield? is an infinitesimal part of the billions of kinds, invaluable to anyone wishing to Mr. WIGGLESWORTH. I yield. dollars that have to be expended. I hope keep abreast of the ECA problem. Mr. PHILLIPS of California. I rise t.o the House will agree with the Senate Here is another study. It is 56 pages express the hope that sometime before conferees. long, and is entitled "ECA and Strategic we are through with this bill an ade­ The SPEAKER. The time of the gen­ Materials." quate opportunity may be provided to tleman from New York [Mr. TABER] has Here is a 29-page study entitled "Ship­ find out what is in it and to discuss it. expired. ping Problems in the ECA Program." We have discussed this afternoon wheth­ Mr. CANNON. Mr. Speaker, I yield Here is another study entitled "Ma­ er the gentleman from New York agrees two additional' minutes to the gentleman. rine Insurance in the ECA Program." with the gentleman from Pennsylvania, Mr. KEEFE. Will the gentleman Here is another entitled "Wool Pro­ but only two people have discussed what please advise the House as to how they curement by ECA." is in this bill. should vote on this matter in the event And another entitled, "The Food Sit­ Mr. WIGGLESWORTH. The con­ that the Members want to vote to keep uation in Europe in the Fall of 1948." ference report will, of course, be con­ this "watchdog committee"? And another entitled "German Repa­ sidered subsequently. I hope the House Mr. TABER. Members should vote rations." will vote "no" on the pending motion. · "no". if they want to have any control Mr. Speaker, these are samples of the The SPEAKER pro tempore rk, and for other purposes; without Fenton Macy Wadsworth RECORD and include an article from the amendment (Rept. No. 1238). Referred to Fisher Marcantonio Weichel Klamath Falls News-Herald. the Committee of th0 Whole House on tlie Ford Martin, Iowa Werdel State of the Union. Gamble Martin, Mass. White; Idaho SPECIAL ORDER GRANTED Gathings Merrow Wigglesworth Mr. MORRIS: rommittee on Public Lands. Gavin Meyer Williams Mr. WILLIAMS asked and was given H. R. 5670. A bill authorizing transfer of I.and Gillette Michener Wilson, Ind. permission to address the House for 20 to the county of Bernalillo, State of New Golden Miller, Md. Withrow minutes on tomorrow, at the conclusion Mexico, for a hospital si.te; without amend­ Goodwin Miller, Nebr. Wolcott of the legislative program of the day and ment (Rept. No. 1239). Referred to the Gossett Morton Wolverton Committee of the Whole House or th l~ State Graham Murray, Tenn. Woodruff following any special orders heretofore of the Union. Gross Murray, Wis. entered. Gwinn Nelson Mr. LYLE: Committee on Rules. House ENROLLED BILL SIGNED r..esolution 320. Resolution prov.iding for the ANSWERED "PRESENT"-2 taking from the Speaker's table of the bill, Allen, La. Hand Mrs. NORTON, from the Committee on H. R. 4830, to the end that the Senate amend­ NQT VOTING-56 House Administration, reported that ments be and are hereby disagreed to and that the conference requested by the Senate Arends Gilmer Pfeifer, that committee had examined and found Bland Gordon Joseph L. truly enrolled a bill of the House of the is hereby agreed to; without amendment Bolton, Md. Gregory Plumley (Rept. No. 1241). Referred to the House Bolton, Ohio Hall, Powell following title, which was thereupon Calendar. Breen Leonard W. Regan signed by the Speaker: Bulwinkle Hart Rich H. R. 3751. An act to transfer a. tower lo­ Burleson Hinshaw Sabath REPORTS OF COMMITTEES ON PRIVATE Cavalcante Jonas St. George cated on the Lower Souris National Wildlife Chatham Kennedy Sheppard Re.fuge to the International Peace Garden, BILLS AND RESOLUTIONS Christopher Lemke Smith, Ohio Inc., North Dakota. Clevenger Lesinski Smith, Va. ·under clause 2 of rule XIII, reports of Dague McGregor Staggers ADJOURNMENT committees were delivered to the Clerk Davies, N. Y. McKinnon Thomas, N. J. for printing and reference to the proper Dingell Mason Tollefson Mr. McCORMACK. Mr. Speaker, I Dolliver Morrison Vinson move that the House do now adjourn. calendar,- as follows: Eaton Norblad Welch, Calif. The motion was agreed to; accordingly Mr. WALTER: Committee on the Judiciary. Norton Fallon White, Calif. S. 331. An act for the relief of Ghetel Pollak Fellows Pace Woodhouse Kahan, Magdalena Linda J{ahan (wife), and Fugate Patman the House adjourned until tomorrow, Garmatz Patten Susanna Kahan (daughter, 12 years old); Wednesday, August 10, 1949, at 12 o'clock with an amendmf'nt (Rept. No. 1216)- Re­ So the motion was agreed to. noon. ferred to the Committee of the Whole House. 1949 CONGRESSIONAL RECO~D-HOUSE 11147 Mr. WALTER: Committee on the Judiciary. amendment (Rept. No. 1234). Referred to querque, N. Mex., to provide facilities for S. 555. An act for the relief of Eiko Naka­ the Committee of the Whole House. the treatment of Indians; to the Committee mura; without amendment (Rept. No. 1217). Mr. DENTON: Committee on the Judiciary. on Public Lands. Referrea to the Committee of the Whole H. R. 3804. A bill for the relief of Fred B. By Mr. RANKIN: House. Niswonger; without amendmPnt (Rept. No. H. R. 5937. A· bill to provide for the con­ Mr. WALTER: Committee on the Judiciary. 1235). Referred to the Comfoittee of the struction of a Veterans' Administration Hos­ S. 787. An act for the relief of William Whole House. pital at Tupelo, Miss.; to the Committee on (Vasilios) Kotsakis; without .amendment Mr. BYRNE of New York: Committee on Veterans' Affairs. (Rept. No. 1218). Referred to the Commit­ the Judiciary. H. R. ·3405. A bill for the H. R. 5938. A bill to provide for the con­ tee of the Whole House. relief of Vivian Newell Price; with an amend­ struction of a Veterans Administration Hos­ Mr. WALTER: Committee on the Judiciary. ment (Rept. No. 1236). Ref.erred to the pital at Mound Bayou, Miss.; to the Commit­ S. 1026. An act for the relief of · Roman Committee of the Whole House. tee on Veterans' Affairs. Szymanski and Anastasia Szymanski; with­ Mr. BYRNE of New York: Committee on By Mr. BURKE: out amendment (Rept. No. 1219). Referred the Judiciary. H. R. 2758. A bill for the H. R. 5939. A bill to authorize the appro­ to Committee of the Whole House. relief of the Fisher Brewing Co.; without priation of funds to assist the States and Mr. WALTER: Committee on the Judiciary. amendment (Rept. No. 1237). Referred to Territorie~ in financing more equitable H. R. 715. A bill for the relief of Manuel the Committee of the Whole House. schedules of salaries for teachers in the pub­ Uribe; with an amendment (Rept. No. 1220). Mr. BRYSON: Committee on the Judiciary. lic elementary and secondary schools, and Referred to the Committee of the Whole H. R. 5319. A bill granting ,a renewal of to promote the general welfare, and for other House. . patent No. 40,029, relating to the badge of purposes; to the Committee on Education Mr. GOSSETT: Committee on the Judici­ The Holy Name Society; with an amend­ and Labor. ary. H. R. 5149. A bill for the relief of ment (Rept. No. 1240). Referred to the By Mr. BIEMILLER: Fernando Aboitiz; with an amendment (Rept. Committee of the Whole House. H. R. 5940. A bill tu amend the Public No. 1221). Referred to the Committee of Health Service Act and the Vocational Edu­ cation Act of 1946 to provide an emergency the Whole House . . PUBLIC BILLS AND RESOLUTIONS Mr. GRAHAM: Committee on the Judici­ 5-year program of grants and scholarships ary. H. R. 5375. A bill for the -relief of · Under clause· 3 or rule XXII, public for education in the fields of medicine, Mrs. Hilda De Silva; without amendment bills and resolutions were introduced and osteopathy, dentistry, dental hygiene, public (Rept. No. 1222). Referred to the Committee severally referred as follows: health, and nursing professions, and for of the Whole House. other purposes; to the Committee on Inter­ By Mr. CLEMENTE: state and Foreign Commerce. Mr. GRAHAM: Committee on the Judiciary. · H. R. 5929. A bill to amend the Army and H. R. 5539. A bill for the relief of Mrs. By Mr. BYRNE of New York: ' Air Force Vitalization and Retirement H. R. 5941. A blll to incorporate The Mili­ Claudia Weitlanner; without amendment ~qualization ·Act of 1948; to the Committee (Rept. No. 1223). Referred to the Commit- tary Chaplains Association of the United on Armed Services. States of America; to the Committee on the tee of the Whole House. . · By Mr. KARSTEN: Judiciary. Mr. GRAHAM: Committee on the Judiciary. H. R. 5930. A bill to provide for· direct Fed­ By Mr. CHUDOFF: H. R. 5851. A bill for the relief of Mrs. eral loans to m·eet the.housing needs of mod­ H. R ..5942. A bill to amend the National Toshiko Keyser; without amendment (Rept. erate-income families, to provide liberalized Housing Act, as amended, and for other No. 1224). Referred to the Committee of credit to reduce the cost of housing for such purposes; to the Committee on Banking and · the Whole House. · families, and for other purposes; to the Com­ Currency. Mr. DENTON: Committee on the Judiciary. mittee on Banking and Currency. By Mr. MURDOCK: H. R. 587. A bill for the relief of Dick Walook By Mr. MURRAY of Tennessee: H. R. 5943. A bill to provide for the erec­ and Alfred L. Woods; with an amendment H. R. 5931. A bill to establish ·a standard tion of a monument at the grave of Constan­ (Rept. No. 1225). Referred to the Committee schedule of rates of basic compensation for tino Brumidi; to the Committee on House of the Whole House. · certain employees of the Federal Govern­ Administration. - Mr. JENNINGS: Committee on the Judi­ ment; to· provide an equitable system for By Mr. CROSSER: ciary. H. R. 1024. A bill for the relief of fixing and adjusting the rates of ·basic com­ H. Res. 321. Resolution for the considera­ Jacob Brown; with an amendment (Rept. pensation of individual employees; to repeal tion of the bill H. R. 4846; to the Committee No. 1226). Referred to the Committee of the Classification Act of 1923, as amended; on Rules. the Whole House.. · and for other purposes; to the Committee Mr. LANE: Committee on the Judiciary. on Post Office and Civil Service. H. R. 1106. A bill for the relief of King V. By Mr. RANKIN: PRlvATE BILLS AND RESOLUTIONS Clark; with an amendment (Rept. No. 1227). H. R: 5932. A bill to extend pension bene­ Under clause 1 of rule XXII, private Referred to the Committee of the Whole fits under the l'aws reenacted by Public Law bills and resolutions were introduced and House. 269, Seventy-fourth Congress, August 18, Mr. DENTON: Committee on the Judiciary. 1935, as now or hereafter amended, to cer­ severally referred as fallows: H. R. 2075. A bill for the relief of Frank G. tain persons who served with the United By Mr. CASE of South Dakota: Moore; without amendment (Rept. No. 1228). States mllltary or naval forces engaged in H. R. 5944. A bill authorizing the issuance Referred to the Committee of the Whole hostilities in the Moro Province, including of a patent in fee to Thomas Francis Two House. . Mindanao, or in the islands of Samar and Heart; to the Committee on Public Lands. Mr. BYRNE of New York: Committee on Leyte, after July 4, 1902, and prior to Janu­ By Mr. JENNINGS: the Judiciary. H. R. 2266. A bill for the ary 1, 1914, and to their unremarried widows, H. R. 5945. A bill for the relief of the city relief of Morris Tutnauer; with an amend­ child, or children; to the Committee on Vet­ of Harriman school district; to the Commit­ ment (Rept. No. 1229). Referred to the erans' Affairs. tee on the Judiciary. Committee of the Whole House. By Mr. REED of Illinois: By Mr. REDDEN: Mr. LANE: Committee on the Judiciary. H. R. 5933. A bill to amend an act entitled H. R. 5946. A bill for the relief of Edgar H. R. 3769. A bill for the relief of Doris M. "An act to establish a uniform system of B. Grier; to the Committee on the Judiciary. Faulkner; with an amendment (Rept. No. bankruptcy throughout the United States," By Mr. SABATH: 1230). Referred to the Committee of the approved July 1, 1898, and acts amendatory H. R.. 5947. A bill for the relief of Alfto Whole House. · thereof and supplementary thereto; to the Batelli; to the Committee on the Judiciary. Mr. JENNINGS: Committee on the Judi­ Committee on the Judiciary. ciary. H. R. 3810. A bill for the relief of .By Mr. WHI'r!'INGTON: --.- · Cecil E. Gordon; without amendment (Rept. H. R. 5934. A bill to amend the "Second PETITIONS, ETC. No. 1231). Referred to the Committee of the . Supplemental National Defense Appropria­ Under clause of rule XXII, petitions Whole House. tion. Act, 1943,'' approved October 26, 1942 i Mr. LANE: Committee on the' Judiciary. ( 56 Stat. 990, 999), and for other purposes; and papers were laid on the Clerk's lesk H. R. 4556. A bill for the relief of the to the Committee on Public Works.· and referred as follows: estate of Elmo Sodergren; without amend­ By Mr. BAILEY: 1396. By Mr. TAYLOR: Petition of Earle H. ment (Rept. No. 1232). Referred to the com­ H. R. 5935. A bill to authorize the Admin­ Bogardus, traffic counselor, _Menands, N. Y., mittee of the Whole House. istrator of Veterans' Affairs to sell or lease urging- action before the present session o:t: Mr. BYRNE of New York: Committee on oil and gas rights in the ·subsurface of the .Congress adjourns, on repeal of excise taxes, the Judiciary. H. R. 5353. A bill for the land on which is situated the Veterans' Ad­ especially the transportation tax on freight; relief of Max Schlederer; without amend­ min~stration facility at- Clarksburg, W. Va.; to the Committee on Ways and Means. ment (Rept. No. 1233). Referred to the Com­ to the Committee on Veterans' Affairs. 1397. By the SPEAKER: Petition of (;ath­ mittee of the Whole House. By Mr. MILES: olic State League of Texas, San Antonio, Mr. BYRNE of New York: Committee on H. R. 5936. A bill authorizing an appro­ Tex., relative to amending Public Law 774, the Judiciary. H. R. 4165. A bill for the priation for the construction, extension, and Eightieth Congress; to the Committee on the relief of Katherine H. Clagett; without improvement of a county hospital at Albu- Judiciary.