1947 CONGRESSIONAL RECO'RD-SENATE 4343 to the Committee on Appropriations, and By the SPEAKER: Memorial of the Legisla ence to endorsement of H. R. 1639; to the ordered to be printed. ture of the Territory of Hawa11 memorializing Committee on the Judiciary. 630. A letter from the Comptroller General the President and the Congress of the United 415. Also, petition of the board of trustees of the United States transmitting report on States to provide for the exploration, investi of the National Petroleum Association, peti the survey of the accounting system of the gation, development, and maintenance of the tioning consideration of their resolutions with Federal Public Housing .Authority for the fisl.ling resources and the development of the reference to taxation of cooperatives, tax years ended June 30, 1945, and June 30, 1946 high-seas fishing industry of the Territories ation of reclaimed oil, and taxation of lubri (H. Doc. No. 229); to the Committee on Ex and island possession of the United States cating oil; to the Committee on Ways and penditures in the E..'xecutive Departments, and in the tropical and subtropical Pacific Ocean Means. · ordered to be printed. and intervening seas; to the Committee on Merchant Marine and Fisheries. REPORTS OF COMMITTEES ON PUBLIC BILLS AND RESOLUTIONS PRIVATE BILLS AND RESOLUTIONS SENATE Under clause 2 of rule XIII, reports Under clause· 1 of rule XXII, private THURSDAY, MAY 1, 1947 of committees were delivered to the bills and resolutions were introduced and Clerk for printing and reference to the severally referred as follows: UNITED STATES SENATE, By Mr. GROSS: others; to the Committee on Veterans' Af H. R. 3267. A bill to provide for the con fairs. · · PRESIDENT PRO TEMPORE, struction of a country home for the Presi 407. Also, petition of the Arizona State Washington, D. C., May 1, 1947. dent in the Commonwealth of Pennsylvania, Legislature, requesting Congress to create To the Senate: and for other purposes; to the Committee on the Petrified Forest National Park; to the Being temporarily absent from the Senate, Public Works. Committee on Public Lands. I appoint JoHN W. BRICKER, a Senator from By Mr. HAYS: 408. By Mr. MURDOCK: Petition of the the State of Ohio, to perform the duties of H. R. 3268. A bill to repeal section 13b of State Legislature of Arizona, relating to the Chair during my absence . • the Federal Reserve Act, to amend section 13 lasting world peace; to the Committee on A. H. VANDENBERG, of the said act. and for other purposes; to Foreign Affairs. President pro tempore. the Committee on Banking and currency. 409. Also, petition· of the State Legislature Mr. BRICKER thereupon took the By Mr. HORAN: of Arizona, requesting Congress to create chair as Acting President pr? tempore. H. R. 3269. A bill to fix the amount of an the Petrified Forest National Park; to the annual payment by the United States to the Committee on Public Lands. THE JOURNAL government of the District of Columbia; to 410. Also, memorial of the State Legislature the Committee on the District of Columbia. of Arizona, pertaining to legislation bene On request of Mr. WHERRY, and by By Mr. McCORMACK (by request): ficial to veterans and others; to the Commit unanimous consent, the reading of the H. R. 3270. A bill relating to the promo tee on Veterans' Affairs. Journal of the proceedings of Wednesday, tion of certain officers and former officers of 411. By Mrs. SMITH of Maine: Memorial of April 30, 1947, was dispensed with, and the Army of the United States; to the Com the Senate and House of Representatives in the Journal was approved. mittee on Armed Services. the State of Maine to the Honorable Clinton By Mr. KEE: P. Anderson, United States Secretary of Agri MESSAGE FROM THE PRESIDENT H. R. 3271. A bill to provide for reimburs culture, petitioning against the order of April APPROVAL OF BILLS ing Summers County, W. Va., for the lQSS of 9 for further reduction in milk prices because A message in writing from the Presi tax revenue by reason of the acquisition .of of the increase in cost of milk production due land by the United States for the Bluestone to advances in feed prices in the State; to dent of the United States was communi Reservoir project; to the Committee on Pub the Committee on Agriculture. . cated to-the Senate by Mr. Miller, one of lic Lands. 412. By Mr. THOMASON: Petition of El his secretaries, and he announced that on By Mr. DOLLIVER: Paso Post, No. 36, American Legion, urging April 30, 1947, the President had ap H. R. 3272. A bill relating to· the computa that Public, 663, Seventy-ninth Congress, be proved and signed the following acts: tion of length of service, for promotion pur amended ·to extend the time in which veter S. 547. An act to provide for annual and poses of certain employees who are trans ans who have lost their limbs may apply for sick leave for rural letter carriers; and ferred from one position to another within an automobile to be furnished them by the S. 736. An act authorizing the Commis the postal service; to the Committee on Post Government; to the Committee on Veterans' sioners of the District of Columbia to estab Office and Civil Service. Affairs. . lish daylight-saving time in the District of By Mr. JUDD: 413. By Mr. WOLCOTT: Petition of 24 resi Columbia during 1947. H. R. 3273. A bill to prohibit discrimina dents of St. Clair County, Mich., expressing tion in employment because of race, religion, interest in proposed legislation which seeks MESSAGE FROM THE HOUSE color, national origin, or ancestry; to the to prohibit the transportation of alcoholic A message from the House of Repre Committee on Education and Labor. beverage advertising in interstate commerce and over the radio; to the Committee on In sentatives, by Mr. Swanson, one of its terstate Commerce. reading clerks, announced that the MEMORIALS 414. By the SPEAKER: Petition of the House had agreed to the report of the Under clause 3 of rule XXII, memorials Tulsa County Bar Association, petitioning committee of conference on the. dis were presented and referred as follows:. consideration of their resolution with refer· agreeing votes of the two Houses on 4344 CONGRESSIONAL RECORD-SENATE MAY 1 · the amendments of the Senate to the MEETING OF SUBCOMMITTEE OF THE 1ng Congress to oppose the recommen bill Vermont. restricting the use of building and construc tion materials; and Mr. McMAHON. Mr. President, yes FEDERAL CIVILIAN PERSONNEL-ADDt "Whereas the Civillan Production Admin terday I received a telegram from Dr. TIONAL REPORT OF- JOINT COMMITTEE istration has arbitrarily, and without any Charles Seymour, president of Yale Uni ON REDUCTION OF NONESSENTIAL FED foundation in reason or in fact, administered versity, which I should like to read into ERAL EXPENDITURES such rules and regulations to suit its own the RECORD. Dr. Seymour says in the ends, and withou~ regard for the best inter Mr. BYRD. Mr. President, Federal ests of the United States, its citizens, and telegram: employment, both continental and the veterans of its wars; and NEW HAVEN, CONN., April 30, 1947. abroad, decreased 19,603 during the "Whereas the unreasonable, arbitrary, self Han. BRIEN McMAHON, 1947. Washington, D. C.: month of March, The February serving and discriminatory rules and restric 2,251,746 2,232,- tions enforced through color of law by the Abrupt termination of educational benefits total of was reduced to Civillan Production Administratio"l have op to veterans has brought acute financial dis 143 for March. The reduction is due erated to favor one section of the Nation tress to 5,000 students at Yale lasting until mostly to the large decreases in War against another, to set one class of citizens passage of deficiency appropriation bill to and Navy Departments. By excluding against another, to stir up internal strife, provide necessary funds for the Veterans' Ad these two departments from the total the and have in no appreciable way contributed ministration. Earnestly request your aid in reduction shown amounts to only 1,820. to the welfare of the Nation, nor the needs expediting. Within the continental United States of its citizens, nor have they provided any CHARLES SEYMOUR, portion of the houses needed for veterans: President. Federal employment decreased from the Now, therefore. be it February total of 1,969,864 to the March "Resolv_ed by the Assembly and Senate of Mr. President, I sincerely trust that total of 1,949,645, a reduction of 20,219. the State of Nevada (jointly), That the Con before the day is ended the Senate will Excludillg War and Navy Departments gress of the United States be memorialized approve the conference report on the again there was a reduction of 2,378. to enact such legisla tlon as may be · neces deficiency bill, which I understand was Outside the United States the employ sary to abolish the Civilian Production Ad agreed to yesterday by the House of Rep 516 282,398 ministration, or any similar agency restrict. ment increased to a total of ing or retarding building or construction, resentatives, so that the situation with for March .. and further to repeal any and all laws in any regard to veterans' benefits, which is very Twenty-five establishments increased manner restricting or placing limitations deplorable, may be relieved. personnel Juring March. Three of these upon such building or construction; and be THE PALESTINE PROBLEM-TELEGRAM increases were substantial. Interior De it further FROM SENATOR BREWSTER TO HON. p<:J.rtment increase 1,051; Post Office De "Resolved, That copies of this resolution, partment increased 2,529, and Federal duly certified by the secretary of state of WARREN R. AUSTIN the State of Nevada, l?e sent to the President Secui:-ity Agency increased 1,427. The of the United Sates and to the Representa Mr. BREWSTER. Mr. President,, I most substantial reduction was 15,984 tives of the State of Nevada in the Congress ask unanimous consent to have printed in the War Department. Veterans' Ad of the United States. in the RECORD a telegram which I sent ministration decreased 2,117 during the "Approved March 27, 1947. to Hon. Warren R. Austin, Chief of the month, the Navy Department reduced "VAIL PITTMAN, United Nations Mission, regarding the 1,799, and the War Assets Administratjon "Governor." Palestine situation and our position in reduced 2,949. In all, 25 establishments, ·Ordered to : ie on the table: relation to the Jewish agency being rep excluding War and Navy, reduced a total "Assembly joint resolution memorializing resented, a matter with respect to which 8,467, Congress and the Nevada Representatives of or an average of about 340 per in Congress to retain the name 'Boulder I am fully in accord with the sentiments agency. Dam' expressed yesterday by the Senator from During the year and one-half since "Whereas the Boulder Dam located in the Florida [Mr. PEPPER]. I ask that this VJ-day the War and Navy Departments Black Canyon of the Colorado River was com telegram. be printed in the RECORD in have reduced a total of 1,573,649. Yet the pleted in the year 1935; and order to clarify my 9wn position. over-all reduction during this period is *CIII--· 275 4346 CONGRESSIONAL RECORD-SENATE MAY 1 only 1,117 ,626. This means that· the de partment reductions inside the United States TABLE I.-Federal personnel inside conti partments and agencies other than War totaled 7,234. The term "industrial employ nental United States employed by execiltive and Navy have increased 156,023 since the ees" as used by the committee refers to un agencies during March 1947, and compari skilled, semiskilled, skilled, and supervisory son with February 1947-Continued end of the war. Instead of a reduction in employees paid by the Federal Government, personnel resulting from the termination who are working on construction projects, Increase of war functions, new functions were es such as airfields and roads, and in shipyards Departments or agencies F~bru March (+)or tablished and old functions were con and arsenals. It does not include mainte ary decrease tinued under new titles in order to main nance and custodial employees. (See table (-) tain employment and con'tinue the self IV.) ------INDEPENDE"ST AGENCJES perpetuation philosophies as practiced TABLE I.-Federal personnel inside conti continued in the executive branch of Government. nental United States employed by executive agencies during March 1947, and compari Reconstruction Finance Personal services is the largest indi Corporation ______8,336 7, !lG4 -372 vidual item of cost in Government de son with February 1947 Securitic~ ~nd Exchange partmental operation. It is a very im CommiSSion ______1,195 1,190 -5 Smithsonian Institution ... 502 F-04 +2 portant figure in the national budget and Increase TariO' Commission ______224 229 +5 Febru· (+)or Tax Court of the United in order to reduce the budget the pay Departments or agencies ary March decrease States. ______------121 121 ------roll must be cut. In order to do this it (-) Tenuessce Valley Author- is imperative that personnel be reduced, ity . ------13, !:C6 13, G09 +43 Veterans' Administration _ 229,014 226, !l95 -2, 119 not to a prewar level, but to a level that EXECUTIVE DEPARTMENTS is most economical. This also means that (EXrEPT WAR AND NAVY Totrll, excluding War DEPARTMENTS I unnecensary and overlapping functions and Navy Depart- { -8 74G be abolished; Agriculture Department_ __ 77,812 78, 116 -+304 ments. ------1, 219,2711, 216, 8~3 + 6; 368 Commerce Department. __ 34,810 35,-343 +533 I ask unanimous consent that the ad Interior Department______44,939 45,981 +1,042 Net decrease, excluding ditional report of the Joint Committee Justice Department ______23,939 24,127 +188 War and Navy De- L.abo,· Department_------ 7, 278 7, 379 +101 partments ______------2,378 on Renuction of Nonessential Federal Post Office Department_ __ 457,737 460, 2fi0 +2,523 NavyDepartment_ ___ :_ ___ 321,843 319,986 -1,857 Expenditures with respect to the per State Department______8, 485 8, 285 -200 War Department______428,750 412, 7fif. -15,984 Trcamry Department_ ___ _ 103,060 103, OC4 -56 sonnel of the Federal Government may Total, including War be printed in the RECORD. EJI!ERGENCY WAR AGENC!Ef and Navy Depart· {_2p S87 ments. ------1, 969,864 1, 949, ti45 +~ There being no objection, the report Office ot Defense Trans- 368 RECORD, portation ______was ordered to be printed in the t6 £3 -3 Net decrease, including as follows: Office or Sc:entific Re War and Navy De- search and Development. 149 110 -39 partments ______------20,21£ ADDITIONAL REPORT OF THE JOINT COMMITTEE S'tlective Service System •.. 8, 770 ~. 602 -268 ON REDUCTION OF NONEsSENTIAL FEDERAL POSTWAR AGENCIES EXPENDITURES, CONGRESS OF THE UNI'J'ED TABLE !I.-Federal pe1·sonneZ outside contt STATES, PURSUANT TO SECTION 601 OF. THE Council ol Econom'c Ad- nental United States employed by execu REVENUE ACT OF 1941 ON FEDERAL PERSON• visers. ___ _.. _.. __ ... -.. -. ~8 41 +13 tive agencies du1·ing March 1947, and com NEL, FEBRUARY-MARCH 1947 Office of Government Re- ports.... __ ----- ___ ------149 145 -4 parison with February 1947 FEDERAL PERSONNEL IN THE EXECUTIVE BRANCH, Office of Housing Expedi- I MARCH 1947, AND COMPARISON WITH FEBRU• ter __ ----- ______------_ 1, 926 1, 527 -399 Office o. Temporary Con Increase ARY 1947 trols: Departments or agencies Febru· I M h <+)or (All figures compiled from reports submitted Office ol War Mobili· ary arc decrease zation and Recon- (-) by the heads of Federal establishments or version _____ .______their authorized representatives) 133 U6 -17 ------1------Office ol Price Admin· EXECUTIVE DEPARTMENTS According to monthly personnel reports istration ______13, 4E8 12,675 -783 Civilian Production (EXCEPT WAR AND NAVY submltted to the Joint Committee on Reduc DEPARTHENTSl Administration ______3, E35 3,480 -355 tion of Nonessential Federal Expenditures, Philippine Alien Property Federal personnel within the United ·states Administration ______Agriculture Department. .• 1, 283 1, 323 +40 2 ------Commerce Department ••• 2, 498 2. 585 +87 during the month of March decreased 20,219 Price Decontrol Board ___ _ Interior Department______U.S. Atomic·Energy Com- 6 ------4,426 4,435 +9 fro a. total of 1,969,864 in February to mission ______JuFticc Department______521 489 -32 4, 2£0 4,189 -91 Labor Department______1,949,645 in March. Excluding War and War Assets Administra- 97 103 +6 Navy Departments, personnel decreased tion .. ____ _------51,415 48,403 .:...3,012 Post Office Department ••. 1, 411 1,417 +6 State Department~------13,471 13,835 +364 2,378 from the February total of 1,219,271 to Treasury Department _____ 722 742 +20 the March total of 1,216,893. The war De INDEPENDENT AGENCIES partment within the continental United Amer;can Battle Monu- EMERGENCY WAR ments Commiss:on ______Ar-ENCIES States decreased 15,984 from the February 3 3 ------total of 428,750 to the March total of 412,766. Bureau or the Budget ...•. 611 610 -1 Eelcctive Service System __ Civil Aeronautics Board __ _ 518 526 +8 82 84 +2 The Navy Department within- the United Civil Service Commission_ 3, 523 3, 533 +10 States decreased 1,857 from the February Export-Import Bank of POSTWAR AGENC IES Washington ______figure of 321,843 to the March figure of 319,- 117 116 -1 Office of Housing Expe· 986. (See table I.) Federal .Cs 1,071 employees of Howard University and Reconstruction Finance 00 employees of Columbia Institute for the Deaf, pre Corporation. ______·no 96 -14 available for the month of March. War De- viously not included. Smithsonian Institution ___ 8 8 ------1947 CONGRESSIONAL RE'CORD-SENATE 4347
TABLE !I.-Federal personnel outside contt TABLE III.-Consolidated table ot Federal TABLE IV.-Industrtal emplOyees of the Fed nental United States employed by execu personnel inside and outside continental eral Government inside and outside the tive agencies during March 1947, and com United States employed by the executive continental United States, employeti by parison with February 1947-Continued agencies during March 1947, and compari executive agencies during March 1947, anti son with February 1947-Contlnued comparison with February 1947-Con. Increase Increase Increase Departments or agencies Febru Marcp <+>or ary decrease Departments or agencies Febru March <+>or Departments or agencies Febru March (+)or (-) ary decrease ary decrease (-) (-) ----·------1------1------'---·1------·- JNDEPENDEN~ AGENCIES continued INDEPENDENT AGENCIES l'OSTWAJ!. AGENCIES continued Veterans' Administration __ 1,825 1,827 U; S. .A~omic Energy Federal Communicatiom CommlSSion ______COl +601 Commission ______Total, excluding War 1,388 1,370 -18 Federal Deposit Insurance 'NDEPENDEN1 AGENCIES and Navy Depart- Corporation ______56,028 56,486 { +652 1,187 I, Jill -/-4 ments •• ------194 Federal Power Commfs· National Housing Agency. 16 11 -5 i sion. ______------····- 783 776 -7 Panama CanaL ______2,625 2,492 -133 . Net increase, exor CommiSSion ______I, 195 I, 190 -5 ary decrease Smithsonian Institution .•• 510 512 +2 NEWSPRINT SUPPLY AND DISTRIBUTION (-) Tariff C(Jmmission ______~m 229 +5 INTERIM REPORT OF S'?ECIAL CCMMIT· ------11------Tax Oourt-of the United TEE TO STUDY PROBLEMS OF· AMERI States.-----_------121 121 ------EXECUTIVE DEPARTMENTS Tenne.s.Europe are un are threatening the welfare and survival of This initial inquiry by the committee was predictable at this time, and, at any rate, many smaller newspapers and reducing their directed toward a solution of newsprint would likely go to fill reviving needs abroad, effectiveness to the communities which they "shortage,'· which was claimed by the many or be offered to this country at prices pro serve. complain~ s received by the committee to be hibitive to smaller publications. New mHl the most urgent problem-and one that was construction in the United States and Alaska, BILLS INTRODUCED forcing many smaller publications to the if and when undert aken, will require 2 to Bills were introduced, read the first wall. 3 years to reach a point of production. time, and, by unanimous consent, the I helieve the Senate will be interested in Canadian mills may produce two or three some of the facts developed in the report hundred thousand more tons of newsprint second time, and referred as follows: and in the conclusions reached by the com in 1947, but we have no assurance that this By Mr. WATKINS: mittee as a result of its investigation. tonnage will reach the United States. S. 1204. A bill to authorize the expenditure The newsprint problem which has been In my opinion, as chairman of the News of the unexpended balances remaining after causing so much difficulty to smaller publi print and Paper Shortage Subcommittee, the July 1, 1947, in the appropriation provided cations in this country has been generally quickest solution to the situation is volun in Public Law 548 of the Seventy-ninth Con termed a "shortage." As a matter of fact, tary action by the larger users of newsprint gress for the payment of premiums for the the immediate problem !R that of equitable to share the very small percent of newsprint production of and exploration for ores of distribution of unusually large supplies of (about 1V:z to 2 percent) needed to relieve copper, lead, and/ or zinc; to the Committee newsprint produced in this country as well the distribution problems of the smaller pub on Banking and Currency. as that shipped into the United States from lications. If voluntary action along this By Mr. JOHNSON of Colorado: Canada and Newfoundland. line is not taken by the industry, it is my . S. 1205. A bill for the relief of Paul Ma While it. is true that there is a wo.rld short belief that regulatory legislation may again nesis; and age of newsprint-due to war conditions be imposed upon the industry-and this S. 1206. A bill for the relief of Jack O'Don we in this country are getting by far the possibility is as undesirable to me as I am nell Graves; to the Committee on the ., greater proportion of the world's supply. sure it is to the businessmen of the publish Judiciary. Consumption of newsprint in the United ing and newsprint industry. To ration, in a By Mr. TYDINGS: States in 1946'- totaled 4,296,268 tons-repre peacetime economy, a product-83 percent S. 1207. A bill to exempt articles pur senting an increase of 28.4 percent over 1945, of which is supplied by a foreign country chased for the use of volunteer fire com and thousands of tons more than peak con- presents difficulties. too numerous to men panies from the manufacturer's excise· tax sumption in prewar years. _ tion at this time. In fact, the committee imposed by chapter 29 of the Interna~ Reve · It is also amazing to find that 83 percent has been warned by the Canadian newsprint nue Code; to the Committee on Finance. of our newsprint consumption is imported manufacturers that any effort to ration or S.1208. A bill for the relief of Calvin D. from sources outside of our national borders. control newsprint shipments to this coun Lynch & Son; W. Thomas Lockerman; Sud In 1946 Canada supplied us with 78 percent try would likely result in their diversion of lersville Supply Co.; George C. Moore and and Newfoundland with 5 percent of our newsprint production to profitable overseas H. A. Moore; J . McKenny Willis & Son, Inc.; national supply. United States mills produce marketr. . Hobbs & Jarman; and Royse R. Spring; and only 17 percent of the newsprint we use. The position taken in this interim report The committee was told by Canadian and is that demand for newsprint will continue S. 1209 (by request). A bill for the relief of high; and emergency, conditions, unfavorable Peter August Escher; to the Committee on American newsprint mills that 9.5 percent of the Judiciary. the newsprint they produce for the ¥nited to smaller publications, will exist for many States is sold to newspaper publishers who months to come. For these reasons it is By Mr. WATKINS (for himself ri::.-d have contracts with the mills. A few smaller recommended: Mr. MALONE) : publishers have contracts, but at least 90 That voluntary action be taken by news S. 1210. A bill to amend section 27 of the percent of the smaller newspapers and other paper publishers, newsprint manufacturers, act of May 18, 1916 (39 Stat. 159), an act publications in this country must depend newsprint distributors and magazine pub making appropriations for the Bureau of In upon jobbers who have contracts with the lishers in the formation of an over-all indus dian Affairs for the fiscal year ending June mills-and who receive only the remaining try committee which Will act to relieve bard 30, 1917; to the Committee on Public Lands. 5 percent of the production. ship cases among all types of publications, By Mr. FERGUSON: This division of production might prove investigate such needs, and supply newsprint S. 1211. A bill for the extension of ad adequate under normal conditions, because by means of voluntary contributions from miralty jurisdiction; to the Committee on the newsprint needs of smaller newspapers within the industry; the Judiciary. and publications are only a small fraction of That legislation to implement the organi REDUCTION OF INCOME TAX zation of such an industry committee and national consumption. But when there is a AMENDMENTS business boom and the pressure of greatly provide for its immunization against anti expanded advertising. linage and circulation trust prosecution for a limited period of Mr. YOUNG and Mr. FULBRIGHT demands by larger publishers hits the mar time be introduced to the Congress. each submitted an amendment in ket· the smaller publisher find his normal Such legislation was introduced by me, for tended to be proposed by them, respec sources of supply disappearing. myself, Senator WHERRY, Senator CAIN, and A brief check of advertL ing and circula Senator MARTIN, on April 9, and has been tively, to the bill to reduce tion figures, undertaken by the subcommit referred to the Committee on Interstate and individual income-tax payments, which tee for a list of 160 leading newspapers in Foreign Commerce. were referred to the Committee on Fi the United States, shows that expansion of The members of the Senate Small Business nance, and ordered to be printed. advertising and circulation. 1946 over 1945, Committee who participate in this report paralleled tile increased production percent consider the establishment of a voluntary WATER-POLLUTION CONTROL age of newsprint to a remarkable degree. For industry committee the most effective and AMENDMENT the lOG newspapers checked, the average in desirable way to handle the emergency Mr. GREEN. * Mr. President, I ask crease was 26.2 percent in advertising linage situation. The committee has taken steps and 5.3 percent in circulation. At least 10 to lay the groundwork for industry coopera unanimous consent to submit amend of the larger newspapers recorded advertising tion in 'meetings and conferences held with ments intended to be proposed by me linage increases ranging from 30 to 73 representatives of the publishing and news to the bill to amend the Na form its patriotic duty in the war; that duction employees belong. It should be tional Labor Relations Act, to provide labor has set up a monopoly and a dic admitted, however, that the long .history additional facilities for the mediation of tatorship in the United States, and that of successful union activities on the part labor disputes affecting commerce, to it is responsible for the present.economic of supervisors in many industries refutes equalize legal responsibilities .of labor or inflation and threatened collapse o.f our any suspicion of conflict with or betrayal ganizations and employers, and for other ~economic system. of employers on the part of such super purposes. ' . This propaganda has sought to create visors; and that to outlaw such organ- The ACTING PRESIDENT pro tem ·the impression· that in the postwar pe . izations will only lead to industrial un pore. The question is on agreeing to riod labor has willfully precipitated rest. When the bill was before the Labor the amendment, as modified, proposed by wholly unwarranted strikes and has and Public ·welfare Committee, I sup the Senator from Minnesota [Mr. BALL] made unjustified demands for wage in ported many provisions designed to clar for himself, the Senator from Virginia creases destructive of the national wel ify and improve the collective-bargaining [Mr. BYRD], the Senator from Georgia fare. It has left entirely out of con processes. [Mr. GEORGE], and the Senator from New sideration the serious disadvantage But, Mr. President, I reject the extreme Jersey [Mr. SMITH]. to insert certain lan workers have suffered through the features of this bill as destructive of in guage on page 14, line 6, after the word break-down of price controls and the dustrial peace. Industrial disputes do "coerce." tremendous increase in living costs. not occur because leaders of labor or Mr. MURRAY. Mr. President, in the. Mr. President, these harsh and un management want them. They do not presentation of the pending bill, no ef founded charges are resented by the occur, as the bill would seem to have us fort has been made by its proponents to workers of the country. They feel that believe, because the National Labor Re place before the Senate the history -of the they are being made the victims of a lations Board has three members rather long and bitter conflict between labor vicious scheme to weaken and under than seven; or because mediation is car and manageme~t which culminated in mine their strength and render them ried on by a Conciliation Service in the the system of laws now on the statute powerless effectively to assert and defend Department of Labor rather than by a books regulating labor-management re their rights in the bargaining processes: Mediation Service outside it, nor because lations. The labor laws which are now Of course, we have had disputes and some employers claim they are deprived in force regulating the relations between strikes growing out of wage demands of the right of free speech. These are labor and management did not spring up since the war ended, but they have clear not the causes of strikes, neither are the overnight. They are not the product of ly been the result of economic condi cures for strikes so simple. the New Deal. They grew up under many tions. No intelligent person M.n say There are those who speak of strikes national administrations, both Demo that these industrial disputes have arisen as though they believed that workers cratic and Republican. The history of because labor and management want like to strike. Such a notion is utterly the emergence of American labor from them. Certainly they do not occur, as without foundation, but, unfortunately, the rule of the jungle-the fight of labor the pending bill would have us believe, propaganda has led many people to be to establish its right in our American because labor is unreasonable and mo lieve this fiction. In any strike, be it economy-shows a long and painful de nopolistic. successful or unsuccessful, it is the work velopment. No Senator on this side of the aisle will ers Who suffer most. Workers do, not Yet by the pending bill it is proposed dispute that there is need of some cor forego their wages and jeopardize the in one fell swoop to emasculate and in rective legislation. At th~ last session of welfare of their families for light or some instances completely wipe out of Congress I and· many of my colleagues on capricious reasons. To them, a strike is existence labor's vital safeguards which this side of the aisl~ expressed a desire, a matter of utmost urgency, to be under were won after years of patient effort as we have at this session, to cooperate taken only for the most compelling rea and sacrifice. in working out sound legislative reforms sons. The bill, of course, is dressed up with designed to render justice and equity to Those reasons can be summed up in many pious protestations and expressions both labor and management. In the one word, "insecurity," the fear of want; of good intentions. It is stated in the Labor and Public Welfare Committee of the fear of unemployment; the fear of bill that its purpose is the elimination the Senate, while this bill was under illness; the fear of industrial accidents; of the causes of industrial strife, the study, the minority members indicated a the fear of an impoverished old age; yes, .Promotion of industrial peace, and the desire to assist in writing a bill which and the fear that there is a movement on removal of barriers to interstate com would carry into effect the President's foot to break the the unions which have merce. In the face of present economic proposals for a fair, reasonable, and accomplished so much toward the ex trends threatening deflation, unemploy sound program of remedial labor leg pansion of industry and improvement of ment, and great national danger, the islation. the standards of living of American purposes' stated should be the hope and . In his message to the Congress on Jan workers . aim of every American. uary 6, 1947, the President recom- . The Congress must not make the mis But, Mr. President, I am convinced mended: take of making light of these fears. that the bill in its present form will not We should enact legislation to correct cer They hang over the American workman achieve the purposes expressed by its tain a:buses and to provide additional govern as a constant threat to his security and proponents. I say this because it ignores mental assistance in bargaining. But we the security of his family. During the the underlying causes of industrial strife should also concern ourselves with the basic Democratic administration since 1933, and sorely needed constructive ap- causes of labor-management dimculties. a start .was made toward removing some 1947 ' CONGRESSIONAL RECORD-SENATE 4351 of those fears; but only a start; yet, that labor; merely a program to hamstring milk; 15 percent less clothing and other start constituted a_ major contribution the unions and weaken their e1Iorts to soft goods. By wrecking price con to improved· labor-management rela bargain' collectively for what they can trol; we have literally taken food out of tions. not secure-individually. As though that the mouths of our people. The President has repeatedly called would insure industrial peace. I remember the prophecies of those on the Congress to expand and mod This is the central issue in manage who argued for abandoning controls. ernize our social .security, health, and ment-labor relations. Management is "Let prices go,''.they said. "They will go welfare system; but his recommendations uncertain of the future of demand, ap up for a while, and then come down as have gone unheeded. prehensive r~ high costs and high prices, supply catches-up with demand." Well, When the average factory worker sees fearful of committing itself to produc supplies are at an all-time high and so his earnings fall, as they did in 1945, from tion, price and wage policies based on are prices. Half of the prophecy was $47.50 to $40.77, in a few months, while sustained demand. Labor is insecure in right. When controls were lifted, prices the cost of living crept upward, is it any the face of rising living costs and did go up, faster than they had ever wonder that he tries to protect the stand shrunken purchasing power, fearful that gone up before, and then thel went up ard of living of himself and his family a recession may lead to unemployment. some more. And while wages were rising by any legitimate means? Let the stat There are the basic causes of industrial slowly, in hopeless pursuit of relief from isticians tell him :that his wages were disputes, and in this sense, full employ high prices. profits soared as never before still higher than in 1939; he remembers ment with maximum production and in time of peace. that in 1939 there were 8,000,000 workers purchasing power should be both the ob Let those who. would try to blame the unemployed, with poverty and suffering jective and the .solution of management price increases on labor's modest wage in every corner of the land. He knows labor relations. gains have a look at the profit state- that $47.50 buys many things for his Nearly a year ago, in addressing the -ments of the various industrial corpora wife and children that $40 will not buy. Senate when the Case bill was under con tions. The profits of the last part of When the average worker sees the cost sideration, I pointed out that the ordeal 1946 show that it was not wages that of living rise, as it did in 1946, by 15 per of war is invariably followed by a pain sent prices up. The profits of indus cent in a few months, while his earnings ful period of reconversion to peace. I trial corporations before taxes in the rose only half as much, is it any wonder reminded the Senate that the years 1919 fourth quarter were approximately one that he looks to a second round of wage. and 1920 were filled with labor strife third of the wages of all industrial increases to restore his lost purchasing and ecunomic disorder. As a matter of workers. Now add to all this the fact power? Critics of workers' wage de fact, there were nearly as many strikes, that the profits in the first quarter of mands may tell him to wait for prices to involving nearly as many workers in 1919 1947 are so much larger than those of come down, but he knOW$ that he lives as in 1945-46, although the number of 1946 that conservative business journals today by what his wages will buy today. workers organized in unions was far have referred to them as embarrassing. Last year, the coal mfpers were severely smaller. I pointed out that if we had As the consequence of these fantastic criticized on the floor of the Senate for been wise and more foresighted, we would increases in prices and profits, we are demanding, through collective bargain have profited by that hard lesson. We now faced with the threat of recession. ing, a health and welfare fund. Since would have provided means for helping In his economic report to the Congress teen, we have seen the tragedy of Cen labor to reconvert to postwar conditions tralia. We have heard a report by an as we provided liberal means, at the cost in January, the President said: admiral of the Navy describing the of billions of dollars to the Government, Chief among the unfavorable factors 1s the marked decltne in real purchasing power shocking neglect of health conditions in for helping business to reconvert. . of great numbers of consumers, resulting many of the Nation's mining communt But we d:d not. On the contrary, with from the large price increases in the second ties. This comes as .no surprise to those haste that was reminiscent of the regime half of last year. Maximum production and of us who for years have advocated mod of so-called normalcy in the 1920's, we employment this year would yield a sul:> ern health and welfare legislation for this cast aside our responsibility for an or stantial increase in the available supply of country. But the Congress has neglected derly return to a peacetime economy. consumer goods and services, especially in to pass such legislation. While we were still in the throes of in the area of durable goods. This requires higher real purchasing power to take the Is it any wonder that the miriers strike dustrial strife over wages, we ignored goods off the market. against such conditions? And what so the President's warnings and proceeded If prices and wage adjustments are not lution is offered to the country? Noth to cripple price control beyond recogni made-and made soon enough-there is dan ing to improve the health and welfare of tion and beyond recovery. It is not my ger that consumer buying will falter, orders the miners, or to assure their safety; but purpose here to retrace the dreary his to manufacturers will decline, production a prohibition is demanded against col tory of the collapse of price control. will drop, and unemployment will grow un lective bargaining for health and wel When it became evident that control was less consumers resort to large additional bor fare funds. As though that would in fatally weakened by the action of the rowing and use of past savings to buy the. increased supply of goods. These temporary sure industrial peace. Congress, goods were withheld from the expedients are limited in power and even if Today, the American workman hears market in the expectation that they available would merely postpone the day on every hand rumors of pending "re would command higher prices later on. of reckoning. cession" or "depression." He hears it Black-market operators became bolder. freely predicted that unemployment will It became evident that controls were no Recently he has repeated that warn rise-but maybe "only a few million." longer workable and the President reluc ing in even more emphatic terms. Busi Is it any wonder if he takes the short tantly ordered them abandoned. nessmen are repeating it to each other, view, if he demands increased earnings What happened then was the most un as they wait for the storm to break. now, when industry is earning fabulous restrained burst of price increases that And yet prices continue to rise. profits, rather than wait for the fulfill we have any record of in this country. Should we expect American workmen ment of shadowy promises when prices The cost of living shot up 15 percent in to sit supinely by and fail to assert their come down? And businessmen, too, al 6 months-two and one-half times as rights? Indeed no. That is not the way though profits are now -high, ask them much as in the preceding 3 · years. of a free people. Workers have sought selves how long it will last, and whether Wholesale prices rose 25 percent in the through their unions to redress their they will be able to pay next- year the same 6 months-nearly three times as grievances through collective bargaining. w~ ge increases they grant now. And much as tn the preceding 3 years. Not They have asked for increased wages to what solution is o1Iered to us? Nothing only meat-which some people seem to meet increased prices and costs of living. to forestall depression; nothing to stabi regard as a luxury in this land of plenty As the worker sees the situation, indus lize our economy, or to cushion the shocks but bread and milk, and clothing prices, try, after a long period of high prices, of depression when it comes; nothing to rose sharply. Bread is up 35 percent in had bulging treasuries while labor was broaden or strengthen the protection a year; milk 25 percent; and clothing being forced to live on a thin diet due to against unemployment, sickness, or the 20 percent. Incomes did not rise as fast, lack of adequate wages. poverty of old age. Merely a fruitless so there was nothing for people to do Yet, in seeking to find relief from some e1Iort tQ blame all our postwar ills on the but to buy less. Now we see the result: of these problems, labor is attacked by workers of the Nation; merely a reck 8 percent less food is being bought now some groups as unpatriotic; labor is be less attack on the so-called monopoly of than a year ago; 10 to 15 percent less ing denounced as a vicious monopoly 4352 CONGRESSIONAL, RECORD-SENATE MAY 1 seeking to disrupt and destroy our Amer tween business and government might be 10. More than 57 percent of the total value ican system a:r:d substitute in its stead turned into· im harmonious advance toward of manufactured products was produced better days and finer democracy. under conditions where the four largest pro labor dictatorship. ducers of each product turned out over 50 But I tell the Senate this is a misread But, Mr. President, instead of recog percent of the total United States output. ing of the facts. The danger to free en nizing the need of sound labor-manage 11. One-tenth of 1 percent of all the firms . terprise in our country comes not from ment relations and aiding in the in the country in 1939 employed 500 or more labor but from misguided industrial strengthening of the bargaining proc workers and accounted for 40 percent of all management which fails to recognize and esses which have been set up in this the nonagricultural employment in the country. improve its human relations with the country, there are some in this cou~try, 12. In manufacturing, 1.1 percent of all public-that is its workers and its custo aided and abetted by the National Manu the firms employed 500 or more workers and mers as human beings. facturers Association, seeking to encour accounted for 48 percent of all the manu As long ago as 1938, the editorial age the passage of drastic labor laws facturing employment in the country. cohtmns of Fortune magazine preached a which will crush, or at. least seriously 13. One-third of the industrial-research pretty · good sermon on this subject. cripple, labor organizations. While we personnel were employed by 13 companies. That magazine pointed out that Ameri s.ee these forces at work, we also observe Two-thirds of the research workers were can business, while asserting its rights, the continued.advance of industrial con employed by 140 companies, and the remain ing third were employed by 1,582 concerns. has been overlooking some of its respon centration and dangerous monopolistic About 150,000 industrial corporations were sibilities. In the June 1938 issue of For practices which threaten our system of without research laboratories. tune magazine, I find the following: free enterprise. The fact is that in operating the capi As the Federal Tr,ade Commission stat These statistics are found in the report talist economy, American business has con ed on July 1, 1946, to the House Small of the Smaller War Plants Corporation sistently misappropriated the principles or Business Committee: to the Senate Special Committee To democracy. American business has made · In the · opinion of the Commission, the Study Problems of American Small Busi use of those prl:r:ciples to its own enormous -present, and still growing, concentration of ness, entitled "Economic Concentration profit, bu' it has failed entirely to grasp the economic power in the UnitEd States consti and World War II." social implications or its profit making._ As tutes today's greatest domestic challenge to This , concentration was still further · representing the capitalist economy. bu~iness the American theory of competitive ente~ increased durtng the war years. In 1939 has an obligation to build a workable eco prise, and, along with it, 1.ll that is embodied nomic system. But by 1932, it was .evident · firms with less than 50 employees. ac in the meaning of the.so.mewhat intangible. counted for but 34. percent of all the em that it had failed to do this. It had failed, but nonetheless real, meaning of "the Amer and it has since failed to prov1de tliem ican w_ay of life" and "freedorp of ecopomic ployees of American trade and industry with. a livelihood. to say nothing of demo enteri?rise." • • • .Large co~porate - con, and for 30 percent of the dollar value cratic opportunity. And in so fatling it has solidattons make, cooperation within each of 'the total pay roll. By 1943 the share created a class of persons for whom income 1ndustry or trade group easier and lead in of these small firms had shrunk to 25 .and sustenan·ce are more .immediately im evitably to, cartel organizations· fn America percent of all employees and 19 percent portaut than the preservation of those po as well as Europe . • • • We .do not have "litical assumptions upon which business of the total pay roll. On the other to wait years· (when it may be too late to hand, in 1939 firms with over 1,000 em grew to power. take corrective action) for a .practical demon So, in the break-down of the economics of. ployees accounted for 30 percent of the stration of the ·effects of cartelization on our · total ·employment and 3U percent. of the free capitalism, pusiness is confronted with econom~c and political life. Tl)e experience a reaUstic political fact: Namely that a ma m Europe, which will be' repeated here. if tota:l , pay roll of American trade and jority of the American people, with the monopoly is not adequately controlled, is industry. penniless third as a nucleus, are . beginning spread on the · record for all to see. · The ·By 1943 these figures had risen to 44 to measure the virtue of their Government story of the supergovernment of I. G. Farben mainly in terms of the guaranties it makes and 53 percent, respectively. The re concerning their income. • ·• • is ~ good example of what can happen here. port of the Smaller War Plants Corpo Also private . supergovernment in industry ration which I referred to a moment ago '!!'he path ahead of American business' is leads almost inevitably to political super indeed a narrow path . but it is perfectly states: · clear. If the principles of democracy and of go~ernment. It .is clear that during the war these large private enterprise.are to be preserved, it is Let me cite a few facts, as reported to companies have come to dominate not only evident ·that private enterprise must admit the Senate Small Business Committee, American manufacturing but the entire into its affairs, as representative of the peo economy as 11. whole. · ple, a government profoundly concerned on how far concentration of economtc with the successful operation of the economic control had gone prior to the outbreak And now big business is using its war system. of the war: increased strength to ·attain still greater It should. in . the "uture be the object of 1. The 45 largest transportation corpora concentration of power. As recently re business not to obstruct Government inter tions owned 92 percent of all the transpor ported by the Federal Trade Commission, vention at any cost, tut to see to it that the tation facilities of the country. over 1,800 formerly independent com intervening Government is enlightened in 2. The 40 largest public-utility corpora petitive firms in the manufacturing and economic matters. tions owned more than 80 percent of the mining industries with assets valued at Commenting on the foregoing editorial public-utility fac111ties. $4,100,000,000 have disappeared as a from Fortune. the Washington Daily 3. The country's 20 largest banks held 27 result of mergers and acquisitions since News of May 24, 1938, said: percent of the total loans and investments of 1940. ' all the banks. Even though Fortun·e will be charged with 4. The largest life-insurance companies The merger movement- being a traitor to its class and with picking accounted · for over 81.5 percent of all the Says the report- on a sick man, we think that the more of assets of all life-insurance companies. those m business who read the article, the has been particularly pronounced since VJ better it wUI be. 5. The 200 largest nonfinancial corpora day. In the fourth quarter of 1945 it reached tions owned about 55 percent of all the assets Business in this country today is divided the highest level in the last decade and a into two groups. One, and unfortunately the of all the nonfinancial corporations in the half," and the trend is continuing at a rela smaller, has come to realize that the world country. • tively high level. 6. One-tenth of 1 percent of all the corpo does movP; that the only thing certain in life .The Federal Trade Commission report is change; that we are 20 years behind Eng rations owned 52 percent of the total corpo land for example, in accepting such prin rate assets. goes on to say: · ciples as collective bargaining and social · 7. One-tenth of 1 percent of all the corpo One of ·the outstanding characteristics of security. and that to go against the tide is to rations earned 50 percent of the total cor the current merger movement lies in the drown. The other is the nostalgic delega porate assets. fact that most of the actions have consisted tion, dreaming of the good old days, yearn 8. Less than 4 percent of all the manufac of the acquisition of small companies by inb for the high-collared past, hating Roose turing corporations earned 84 percent of all large corporations. velt but not realizing that Roosevelt after the net profits of all manufacturing all is just a potent sign of i;he times, and corporations. In this connection, Mr. President, there serving on the ·committees that write the 9. No less than 33 percent of the total appeared in the Washington Post this resolutions at the annual meetings of the value of all manufactured products was pro morning an article discussing the same United States Chamber of Commerce. duced under conditions where the four larg subject. I refer to a column by Mr. If the first group could only get busy and est producers of each individual product ac- Marquis Childs, which I ask to have vocal to . the extent of selling the second 90Unted for over 75 percent of the total printed in the RECORD at this point in that it's time·to wake up, the futile fight be- United States output. my remarks. 1947 4353 · There- being no objection, tlie -article wide bargaining may have grown up because on the subject is found in Fortune maga was ordered to be· printeo' in the RECORD, of the existence of Industry-wide trade as zine for June 1938, entitled "Business as follows:. sociations and industry-wide price-fixing. But like·the .argument over which came first, and Government." It proposes that the GROWTH OF INDUSTRIAL MONOPOLY the chicken or the egg, this is irrelevant. · trend should·be reversed and that means (By Marquis Childs) "Now is the time," said NAM President should be found to bring about a de The visitor from Mars-and if we accept Bunting, "to clean out the system changers centralization of business in the United the word of our more romantic scientists, he froin the temple of government." As Sena States. It reads as follows: - may be here any day now-is bound to find tor O'MAHONEY sees it, the system changers BUSINESS AND GOVERNMENT-A DIVISION OF many puzzling contradictions on our troubled are those who would monopo11ze all business INDUSTRY INTO SMALLER UNITS MIGHT planet. Here in the United States he is cer and thereby prepare the way for the all RESULT IN SOME SURPRISING PROFITS tain to be confused by the way in which the dominant state. In the progress nf mankind there are times word :•monopoly" is bandied back and forth. Mr. MURRAY. Nearly three-fourths for everything. There was a time for the It figures iargely in th~ drive for restric Dark Ages . another for the Renaissance, an tive labor legislation. The National Associa of the total ·number of firms which have other for an industrial revolution. There was tion of Manufacturers is spending a great disappeared since 1940 have been ab a time for the building of America, for the deal of money on advertisements hitting at sorbed by larger corporations with assets creation 'Of bigger markets and bigger pay Industry-wide bargaining. The public is of more than $5,000,000. The Federal rolls, and, inevitably, biggef industrial units. being told tnat this Is a monopoly of a little Trade Commission report concludes: And that· is our time. In our time men clique of labor leaders. The figures indicate conclusively that the have been conditioned to the idea of big But, curiously enough, at the same 'time, ness. They believe that to grow big is almost we finq the NAM growing red in the face with major impetus behind the current merger movement had been the desire of giant cor of necessity to progress. They believe that anger at anyone who dares to say that mo the expansion of American enterprise neces nopoly in the ownership of business ls grow porations to consolidate .their wartime gains and to expand the scope of their domination sarily involves the corporate expansion of ing at a new and accelerated pace. It is only its units. And they are taught that the "left-wingers" and "collectivists" who would through acquisitions of smaller, independ~nt enterprise. corporate expansion of the units should re dare to say ~uch a thing. sult in bigger profits, individually and to Specifically, Earl Bunting, head of NAM, It is this type of monopoly, not the so the economy as a whole. attacks a repprt issued by the Fed.eral Trade called labor monopoly, which is the great But it is possible to question this: not Commission. Now, the Federal Trade Com.,. that our time has been wrong. but that mission is a respectable old-line agency that menace now confronting our free-enter it may be time for something else. It may existed long befor..'l the New Deal was ever prise system. be time to reexamine our Ideas of progress heard. of. Yet Bunting interprets the report On February 17, 1947, on the floor of in the light of where we wish to go. It as sinister evidence that the FTC has been the Senate, this menace to our country may be time to weigh the notion that there captured by ''left-wingers." was commented on by the able Senator is some necessary . connection between eco The NAM president has chosen an odd from Wyoming fMr. O'MAHONEY] in con nomic expansion and corporate bigness. It way to refute the FTC report on the growth nection witli pending legislation seeking may be time to wonder whether profits and of monopoly. He, or his economists for him, the national in,come would not be bigger takes the number of corporations that have to . protect our free-enterprise system, if the corporate units of industry were not been absorbed by merger s~nce 1940 and COqt when he said: so big. pares it with the total number of business Everybody agrees that the concentration of Consider what has been happening. firms. Thus he reaches the conclusion that, economic power is a meriance to what we American business was founded upon the at this rate. it would take a. thousand years popularly call the American way of life, but principle of free competition , maintained to monopolize American industry and there the concentration· of economic power pro through free markets. But during the era fore we are perfectly safe. ceeds year by year; month by month, and of bigness. when American business was, so In so doing, he ignores the major con even day by day. · to speak, winding up. the .units of business cLusion of the report. That was . the. fact became so big that they developed a fear that the 1,800 companies which were merged The magazine America, a publication of price wars; ·they dared not compete against with larger companies represented 5 percent noted for its fairness and impartiality in themselves. and no one dared to compete of the total value of all manufacturing cor- . treating public questions, under date of against them. There consequently emerged porations. Most of those mergers took place April 26, 1947, says: · the superunits- well-defined industrial in the last 2 or 3years. · When you stop to think of it, this is an groups whose members act in concert and The total number of companies is not the astonishing phenomenon in a country whose whose aim is not price competition but, on important point. The important point is businessmen worship at the shrine of free en the contrary, price stabilization. The efforts that 5 percent, which is not to be derided as terprise and whose legislators are never too of the superunit produce the reverse · effect the bogey of left-wingers and. collectivists. 'bUsy to spare time for the problems of small of the competitive effort. When the mar Five percent is a sizable chunk of our econ business. It is doubly astonishing these days ket falls off the superunit tries to keep prices omy. The threat of merger and absorption when there fs so much righteous talk in in up. And often it does not consider it ad is a very real one to thousands of smaller dustrial circles about the huge labor monop visable to lower prices until recovery actually businesses throughout the country. olies which are strangling the country. and sets in. Na~e calling is so silly and futile. It is so much fear about the spread of collectivism Now. this technique of bigness, involving always the last resort of a man with a bad abroad. Ycu , would think that this com the artificial control of prices and other case or u bad conscience. petition-conscious country would be excep basic factors, is a collectivist technique. Senator JosEPH C. O'MAHONEY, of Wyo tionally sensitive right now to the first faint And the operation of the collectivist tech ming, is no left-winger. He has been fighting signs of monopoly. that the press would be nique has created for business a precarious for +he past 10 years to keep the free-enter alert to expose and condemn the slightest situation. Business has carried collectivism prise system free by keeping it competitive. tendency toward anticompetitive amalgama so far in its private affairs that its affairs are He bas had the courage to say that the giant tions, that politicians would be trust-busting no longer private, but by the bigness of their corporations are in reality collectivism-a up and down the Middle West as in days gone impact, public. It is untenable, indeed, to kind of private socialism. And being wise in by, raising the specter of Wall Street. the ways of p0litics and human behavior, he suppose that the policies of the steel industry knows that private socialism will sooner or Mr. President. I think it is clear that with regard to prices, production, and em later in a democracy become public socialism. if labor has become "big" it is not for the ployment are strictly private matters. These O'MAHONEY and Representative ESTES purpose of destroying our American sys policies invo~ve directly 570,000 employees, KEFAUVER, of Tennessee, have a bill before $976,000,000 of annual pay rolls, and a $5.- tem and substituting in its stead a labor 000,000,000 investment. They have reper Congress which would stop one of the loop dictatorship. On the contrary, labor boles in our antitrust laws. The law, as it cussions throughout most of business, affect stahds today, says that one corporation may has been obliged to grow in size · and ing at least remotely millions of people and not acquire the stock of another where that strength in order to survive-in order to eventually the entire economy. But inas would help to create a monopoly. It says cope with big business and to maintain much as they impinge upon and invade the nothing about acquiring the physical assets democratic rights for workers in in sphere of public welfare, they impinge upon plants and machines--of another corporation. dustry. and invade the functions of Government. Most of the mergers in recent years have Mr. President, this is a subject which By its very office, Government must inter been by the latter method. The O'Mahoney has been before the country for many vene. And the method of intervention which Kefauver bill would Close that gap. . is easiest and most obvious, and which vyas If Congress is going to attack· the labor years. Back in 1938, when we were going encouraged during NIRA days by business monopoly by law. as the NAM wants, then through a recession~ the magazine For men themselves, is the method of direct reg Congress cannot very well ignore the monop tune made a study of the problem of ulation-of price, for instance, of produc oly that exists in many . fields of business. the growth of monopoly in America and tion, of profit itself. There seems to me to be little point in argu pointed out the great dangers which Thus collectivism in industry begets col ing which monopoly came first. Industry- confronted us in this field. An article lectivism in Government. And if this is not 4354 CONGRESSIONAL RECORD-SENATE MAY 1 collectivism as practiced in the so-called col several small ones. Expenses can be slashed factors would be a question of proper lectivist states, it is only a couple of theo everywhere--on paper. Managements can balance. retical steps removed from it. Carried to its be unified, buying can be done in quantity, But besides a profit to shareholders, there extreme, it means the downfall of the econ distribution can be made more etHcient. It would be other profits. Management would omy upon which American business has all yields wonderful copy for the prospectus profit in that young men, up till then sub been reared; the perversion of the demo writer. But the enthusiast forgets how many merged under a hierarchy, might be given cratic order; the destruction of the right to mergers have failed to work, and how many the chance of their lives at the heac of the risk and profit; and-all too easily-the loss more have succeeded only after 10 or 15 speculative C and D companies. And the of those civil liberties that are at present yeras of disappointing earnings. In 1919 chances of survival for these companies based upon the principle of the limitation Arthur S. Dewing examined 35 industrial ·would thereby be improved. Wall Street it of governmental power. mergers and showed that, after 10 years of self would profit, for Wall Streetwould get Last ·nontb, in the New Deal: Second operat ions, the average earnings of 22 of them the commissions on the reorganization and Time Round, Fortune predicted that new were less than the previous combined earn the reshutHlng of the securities. And finally forces within the administration were about ings of their constituent units. Only four the national economy would profit, for if C to assert tbemsel ves. They began to assert of them realized promoters' estimates in their or D goes bankrupt. bad investments have themselves, Indeed, while the February is first year of operation, and only two of these thereby, been liquidated with the least pos sue was on the presses, and they ,have since kept the record unblemished for 10 years. sible disruption to business as a whole. become known as the New Deal's antimo Dewing's table is too old to be taken liter . This Simon-simple A-B-C-D example ts nopoly prograil1. From the beginning, the ally today, and unhappily the depression• not put forward as· a concrete suggest ion, but precise nature of this program has been am makes a fair examination of recent mergers as an illustration of the principle that a re biguous, and the purpose of the two business extremely difficult. But the principle is democratization of industry would not have and-Government articles in this issue (What clear that few mergers do what they are sup to be done at a total .Joss. Moreover, it is Do They Mean: Monopoly? and Robert H. posed to do. There . may be water in the importan~ to make firm note of two points. Jackson) is to clear up the ambiguity as capitalization. Management trouble may The program suggested here is not aimed at far as possible. Whether the program will develop; management loses contact, becomes bigness per se. The error of bigness does not result in any immediate moves it is impos impersonalized and confused, Indulges in lie in the gross sales, but in the net func sible to predict-indeed, it would seem that grandiose schemes and unprofitable ap tions. How big does a business have to be to the only prediction that can safely be made pendages. Almost certainly some ot the operate etHciently? The answer, of course, concerning the New Deal at present is that units develop losses, and these are carried for varies with every specific case, and in every It will sooner or later bave to spend a great years because of some special situation in industry. As a general rule, whenever a busi deal of money. But even if antimonopoly the capital structure, or because the com ness can look into itself honestly and find is merely a program for the long pull; even pany is obligated, or maybe just because the that its shareholders would profit by a dis If its immediate results turn out to be noth solution, then maybe it is too big. And as a management refuses to admit defeat. These general ideal, there should be enough units ing more substantial than a congressional losing units suck up the earnings. The re Investigation for the preparation of 'legisla in every Industry to preserve the competitive turn on invester capital dwindles from a character of that industry pricewise. But tion and the streamlining of the antitrust projected 10 percent to 5, to 3. maybe to less laws, it merits the attention of business. these are highly theoretical considerations than 1; and if in the -meantime a big funded and would take years to work out. It has For the basic purpose of the program is to debt has been acquired, the company may stop the progress of collectivism and to turn taken 70 years to build business up to its become ossified-a problem child of the ex · present collectivist peak. It might take 70 business back to the democratic, competitive pansion economy. order. Only thus, it is a!-"gued, can Govern years to build another industr~al order, the In an accompanying article the prob basically democratic order here suggested. ment also return to its original. democratic lem of bigness is discussed from the point principles. . ·The unwinding process would, of course, be of view of Government, and the various enormously complicated by funded debts, de But here it is necessary to state flatly that schemes there suggested for breaking up bentures, preferred equities, minorities, and any scheme to break down American indus bigness are Government schemes. But the a thousand and one variations of each. But try Into smaller units must inevitably fail if theme here is not that of Government, it is safe to say that 1f American business It cannot show a profit. This bas been the but of business. And the standard here sug wanted to move in this direction it could move trouble all along with Government police gested is simply the profit standard. It in this direction. And it is safe to say that, mansbip. It is true that businessmen must American industry should undertake to un if accomplished by private initiative, the un operate within the limitations of the public wind itself it would naturally begin with building might be highly profitable, and welfare; but they must also and simulta the unprofitable enterprises.. Speaking might indeed stimulate an actual expansion neously operate within the .limitations of the theoretically, there seems to be no good rea of business and an increase in the national profit-and-loss statement. The businessman son why General Motors, for example, should income, comparable to the expansions and Is of necessity uncooperative toward those be in the business of vacuum cleaners and increases of the past. regulations that d'sregard the logic of profits, the business of electric refrigerators, besides If, on the other hand, businessmen wait or that limit so severely (and be might add, the automobile busine$S. But General Mo for the United States marshal to grab them unfairly) the possibility of profits that the tors makes a handsome profit, and hence, by the collar, the reformation of the economy capital with which he is entrusted is in strictly from the business point of view. the is not apt to be healthy. In that event, the· danger. This is a principle that men sitting burden of proof lies on him who argues that unbuilding process will simply degenerate In their offices in Washington are prone to it ought to be broken up. On the other Into a dog fight in the courts. The same old underrate, with the result that the laws they hand, there are a number of big combines cycle will establish itself. Government will promulgate cause misunderstanding. fear, that have not shown decent earnings for sue, courts will hedge, Congress will legis uneasiness, resentment, and elaborate eva years. Their preferred stocks may be in late, and business will evade. And mean sions that reach the goal-1. e., profit-by arrears from $20 to .$60; they yield nothing while what happens to the national income is devious and even underground means. to the investor; their very size is a liability. all too easy to guess. But with this point firmly in mind it is Companies in this fix are hereby invited to But, if, finally, neither business nor Gov permissible to inquire whether business could examine themselves, to see whether every ernment makes any moves whatever in the conceivably profit by a transformation of body concerned would not profit if they were direction of breaking down industry into Itself. And the answer, of necessity perfunc unmerged into their constituent parts. smaller, more comp~ct, more mobile, and tory within 'the present limitations of space, Not as a concrete example, but merely to better earning units; if bigness is allowed to would seem to be that some of it could. If 1llustrate the general point, imagine a com remain as the standard concept of the the windinJ?.-Up process of the last 70 years bine, A, simplified by the absence of funded economy: then the American businessman, has been an extremely profitable process, debt. Suppose that it is susceptible to @o and the American politico, and in short all there is no reason to suppose that an un logical dissolution into three moderate-sized American citizens, must prepare themselves winding process could not be profitable too. operating companies, B, C, and D. Suppose for a different order of things; an order in Indeed, the greatest obstacle in visualizing that the most profitable enterprises are put which the powers of Government are not the possibilities inherent in such a reversal into B, the medium ones and the losers into limited; in which the right to risk-and of the economy would seem to lie chiefly C and D. The original shareholders in this profit is not clear; and in which the making, event receive three certificates for their old the selling, and even the buying of the prod in a habit of mind that bas conditioned every one, the B certificate representing an ex businessman to think of mergers as inevi ucts of the biggest show in history are all tremely prosperous enterprise, the C and D mysteriously directed from above. tably more profitable than the sum of their certificates representing speculative ones. constituent units. Suppose that both of these speculations fall Mr. President, the ·figures quoted in There is no question but that this has a11d that the C and D certificates become the Fortune article from which I have often proved to be true. 'IJle making of a worthless. Nevertheless it is almost inevita .lust read have greatly increased for the merger on paper is one of the most exciting ble that the B certificate will be worth games in the world just becausl: the potential more than the original A stock. In actual period between 1938 and 1947. increase in profit is enormous. Comparative practice, of course, C and D might be set Mr. President, at the hearings on the balance sheets show that Inventories, cash, up with special considerations, so that they pending bill Hon. Harold E. Stassen, and fixed-asset requl.rements for one big com would not be certain losses, but outside former Governor of Minnesota, and one pany would be considerably less than for chances. The correct determination of such of the leading Republican candidates for 1947 CONGRESSIONAL RECORD-SENATE 4355 the Presidency, who probably is one of joint meeting with the House of Repre Senators will return to the Senate Cham· the best informed men in the country on sentatives? The Senator will be recog ber immediately after the ceremony. labor, protested against legis.Iation which nized when the Senate returns to its Thereupon the Senate, preceded by the that in our economy, labor must be main Mr. MURRAY. I yield for that pur Secretary New Hampshire Cooper LucaE< Thomas, Okla. fully conducted. One group of producers Cordon McCarran Thomas, Utah cannot very well make a change in working [Mr. ToBEY] are necessarily absent. Donnell McCarthy Thye conditions unless their competitors are to Mr. LUCAS. I announce that the Sen Downey McClellan Tydings make the same change. If we break up this ator from South Carolina [Mr. MAY Dworshak McFarland Umstead bargaining it will also tend to cause labor to BANK] is absent by leave of the Senate. Eastland McGrath Vandenberg select some particular segment of a closely Ecton McKellar Watkins The Senator from New York [Mr. Ellender McMahon Wherry related industry, probably a weak segment, WAGNER l is -necessarily absent. Ferguson Magnuson Wiley to make its test. This segment in turn will Flanders Malone Williams practically be prevented from reaching a set The PRESIDENT pro tempore. Fulbright Millikin Wilson tlem~nt unless it is certain that its competi Eighty-eight Senators having answered George Moore Young tors will reach the same settlement. The to their names, a quorum is present. Green Murray result would' appear to me to be more chaotic In accordance with the order hereto Gurney Myers than even those we have Pxperienced in the fore entered, th•:: Senate will now stand The PRESIDENT pro tempore. last year. in recess, and proceed to the Hall of the ~ Eighty-eight Senators having answered The PRESIDENT pro tempore. Will House of Representatives for the joint to their names, a quorum is present. the Senator from Montana yield so that meeting with the House to receive the The question is on agreeing to the there may be a quor~ call preceding the Pr.esident of the United Mexican States. amendment, as modified, proposed by the 4356 CONGRESSIONAL RECORD-SENATE MAY 1 Senator from Minnesota [Mr. BALL] :"or tng of our social-security system, better hous Has the Congress enacted a housing himself and other Senators. ing, a comprehensive national health pro program which would give our people The Senator from Montana is recog gram, and provision for a fair minimum wage. adequate shelter? It has not. nized. Point 4 was the appointment of a com Has the Congress. made an attack on Mr. MURRAY; Mr. President, at the mission to undertake a broad study of the problems of real ~onopoly-the dan time of the recess I was discussing the the entire field of labor-management re gerous concentration of economic power situation in the country with reference lations. and authority in the hands of a few who to centralization of business, growth of The existing laws have been construed seek to dictate the kind of labor laws we monopoly, and the need to preserve labor in the courts over the years and have should have? Of course the answer to as a strong bargaining factor. I will become firmly embedded in our indus that question is no. Economic concen now proceed with a discussion of the trial system. The laws being proposed tration is advancing day by day. matters ·involved in the proposed legis will simply create greater dissension and I ask that a very able discussion of this lation, such as the problem of collec confusion and lay the foundation for matter by Robert E. Freer of the Federal tive bargaining and Nation-wide bar endless litigation and bitterness between Trade Commission appearing in the gaining. labor and management. This was point- Washington Post of Monday, April 28, Mr. President, industry-wide or area ~ ed out at the hearings by a number of 1947, be printed in the RECORD at the close wide collective bargaining has generally witnesses whose patriotism and standing of my remarks. worked well. A study by the Depart in the country cannot be questioned. The PRESIDING OFFIC;ER dustry, one of the branches of glass and States. Mr. MURRAY. Mr. President, I think glassware having national bargaining, Mr. President, no one contends that I can confidently say without fear of no major strike throughout the industry the labor laws of this country are per successful -contradiction that Congress has occurred since collective bargaining fect beyond need of improvement. I will not solve these problems of industrial began with an employer's association in voted for proper changes in the commit discord and strife until it first solves the 1888. Similar conditions have pre tee . and will support changes that are social and economic problems which are vailed in ~ he pottery industry since 1922. designed to correct any recognized weak the basic causes of labor disputes. It is The experience of other industries has nesses in · our system of collective bar for this reason that the President has been equally satisfactory. Where labor gaining. called for a commission to study these disputes have occurred, it has not been But, Mr. President, these improve conditions before we attempt the enact because industry-wide or area-wide col ments alone will not prevent the strikes ment of far reaching labor legislation. lective bargaining is practiced but be that we all fear-no, nor all the prohi Mr. President, the report of the Twen cause of the basic economic conditions bitions and boards and cooling-of! pe tieth Century Fund on Economic Trends to which I earlier referred. To ellmi riods and financial statements we can which has just been released, points out nate or prohibit this form of collective devise. Mr. President, I am neither a that maintenance of our economic bargaining would be to destroy the re prophet nor the son of a prophet, but strength, preservation of our social gains, sults of decades of experience and to run I want the RECORD to show that I sin defense of our democratic system, and counter to a natural development in cerely believe this bill will provoke more. success of our foreign policy depend upon herent in our American economy. disputes than it will ever settle. . the continued growth of our productivity. The labor laws which we now have, A year ago, in debating the Case bill, This in turn depends more upon intan with some appropriate improvements, the Senate was told: gible, psychological factors than upon such as have been suggested by the Pres The Senate of the United States could physical ones. Thus it poses a problem ident, and in the minority report, can much better afford to spend some time adopt in the human relations of American in accomplish everything necessary to ing amendments to the social-security laws dustry. As a Nation we have spent bil overcome our present labor diiDculties. and to the safety laws * • * than to lions of dollars on research in the physi Of course, Mr. President, the underly sit here trying to figure out ways of placing cal sciences and have been well repaid ing _reasons, the basic causes of discon strait-jacket restrictions upon free labor in America. in technological progress, but we have tent and unrest among the workers of done comparatively little to develop the the country, must be eradicated. In his Those are not my words, but the words social sciences that deal with human re state of the Union message, delivered to of the distinguished Senator from Ore lations and might guide us in finding the the Congress January 6, 1947, the Pres gon [Mr. MoRsE], one of the best in true reactions of American workers and ident recommended that- formed men O'l labor problems in the consumers to this problem. We should enact legislation to correct cer United States. They are as true today Mr. President, a business columnist, tain abuses and to provide additional gov as when he uttered them. Mr. C. F. Hughes, whose column ap ernmental assistance in bargaining but we Let us get down to the fundamentals peared in the business section of the New should also concern ourselves with the basic of industrial strife. What have we done causes of labor-management difficulties. York Times of Sunday, April 27, 1947, to improve labor-management relations made some serious comments on this The President went on to recommend or remove the causes of strife? subject. He refers to. the economic con a four-point program to reduce indus Has the Congress made a move to ward ditions of 1920-37, comparing them to trial strikes. Point 1 was the early en off the threat of depression? No, it has the present conditions now threatening actment of legislation to prevent juris not. The Joint Committee of the Con deflation. He then goes on to say: dictional strikes and certain kinds of gress on the Economic Report found the What our critics see at present is that busi secondary· boycotts, and to provide ma President's warnings too controversial ness which got into the dog house in 1932 chinery for settling disputes concerning and laid his message aside. and then retrieved itself so nicely by its war the interpretation of coJlective agree Has the Congress broadened and record. is now in imminent danger of being ments through arbitration. strengthened our social-security and banished again. Business itself can raise the Point 2 was the extension of facilities health laws? It has not. The major.:. cry against labor and the farmers and the within the Department of Labor for as Government but it still cannot erase those ity party in Congress has been too much profits statements. Last week, however, the sisting collective bargaining. preoccupied with a program designed to labor-management agreements came through Point 3 was the broadening of our pro make labor a scapegoat in the approach which for a time appeared doubtful. The gram of social legislation to alleviate ing depression, for which it is responsible. steel settlement was followed by the auto the causes of workers' insecurity. In Has the Conrress given genuine tax mobile pact which will set the pattern for this connection the President saia: relief to our workingmen? It has not. the industry. Thus labor peace seems as The solution of labor-management diffi It has been too busy trying to keep rash sured in the basic industries in spite of pend culties is to be found not only in legislation political promises to big business and ing legislation in llongress that stirs up dealing directly with labor relations but also furious union resentment. · in a program designed to remove the causes war profiteers. of insecurity felt by many workers in our Has the Congress raised minimum Mr. PEPPER. Mr. President, will the industrial society. • • • The Congress wages to bring them into line with 1947 Senator yield? should consider the extension and broaden- living costs? It has not. Mr. MURRAY. I yield. 1947 ~ONGRESSIONA-L RECORD-SENATE 4357 . · Mr. PEPPER. Has it not been the ob pr,esent time violently to affect the econ able changes proposed for a more mature servation of the Senator from Montana omy it would probably impair the very study under the commission to be set up that, generally speaking, in view of the unprecedented prosperity which now as· recommended by the President. fact that most of the strikes of impor prevails. Is not that the conclusion Many businessmen and a large section tance occur over wages, when manage drawn by the Senator from Montana? of the conservative press see this as the ment approaches the wage question in a Mr. MURRAY. That is my conclusion :correct course to pursue. We cannot fair and conciliatory manner, as has fre drawn from my observativn of the situ afford to mix statesma.nship with hys qm:ntly been done in recent weeks by ation and confirmed by the statement teria. We cannot approach the delicate some of the major industries, labor and published in the press in connection with problem of labor relations in an atmo management can get together and we the management meeting held in Chi sphere <>f emotionalism and confusion. can have industrial peace? cago. There is a feeling among the Such a course was advocated by the Wall Mr. MURRAY. Mr. President, the members of management associations Street Journal when similar radical leg Senator from Florida is exactly correct. that something must be done to improve islation was proposed in the Case bill, That has been demonstrated time and the relations between management and which the President was forced to veto again, and I think recent negotiations workers if we are to han industrial peace last year. The Wall Street Journal, dis which have ended so satisfactorily to and high productivity, and a movement cussing the extreme provisions in the both sides prove that what the Senator exists among them to bring about such Case bill, said: just said is true. improvement. I am satisfied that the None of the labor measures recently The writer, to whom I referred a mo forward-looking men in industry realize brought forward deals at all thoroughly with ment ago, also points out that the stakes that if we are to have peace and prosper the fundamentals of national labor legisla involved now are far greater than in the ity and bigh production it must come tion. Any one of them, if enacted, would period of 1920-37 by reason of the fact, about not by laws the purposes of which leave Federal laws on the subject a patch as he states it: are to hamstring and break down the work of inconsistent and partly conflicting power of labor but by bringing about a provisions for the courts to struggle with. That the free-enterprise system here is en The real need Is not of more law but of less. gaged in a final struggle against the rival · better understanding and better spirit Of simpler and more precisely expressed systems of totalitarianism and socialism. of ·cooperation between management and statutes designed first of all to render men The stalling tactics of Russia at the Moscow labor. and groups of men equal before the law. Conference which has ended without results Mr. PEPPER. Mr. President, will the Federal labor laws should be thoroughly re .are attributed with good reason to a Soviet Senat.or yield further? vised and codified. Until it is ready to desire to await what happens here. Mr. MURRAY. I yield. tackle that job in an atmosphere of relative Mr. PEPPER. It is admitted, I think industrial peace, Congress would do well The columnist I have just mentioned not to legislate on labor. is a well-known and highly thought of by everyone, that the legislation now writer, a man of great ability, and a pro pending before the Senate represents a Here we see one of the leading jour found student of economic problems. I violent departure from our past national nals representing industry fearful that have been reading his column for many . policy in the management-labor field. I Congress may attempt to go too far in the years, and I regard him to be very sound will ask the Senator if it is likely that :field of labor legislation. in his economic views. anyone today would advocate legislation The truth of the Wall Street Jow·nal Lower living costs, better and cheaper the effect of which would be to increase observations is exemplified by an edi housing, higher minimum wages, more the profits of management, which are torial appearing in the Evening Star of protection against unemployment and already at unprecedented heights, and Friday, April 25, 1B47, pointing out the the hazards of illness, accidents, and old is it not almost inevitable that any vio lack of wisdom in the proposed abolish age--these are the basic remedies. Many lent change in the management-labor ment of the Conciliation Service and intelligent businessmen recognize this policy of the country will not only. add setting up an independent agency in its and are calling for a more enlightened to swollen profits but will inevitably beat stead. That editorial states: program to preserve our free-enterprise down the wages of the workers, dimin The reasons for this move are obscure. system. ish the purchasing power of the workers, One theory seems to be that since 'the De In the New York Times of April 2, and contribute to the very depression partment of Labor is charged with the duty 1947, I :find the following statement: which the Russians, as the Senator says, of representing labor; a subordinate a.gency are expecting in the American economy? of the Department cannot function fairly in In the grand ballroom of a big hotel in Mr. MURRAY. Certainly not; and . a mediatory role. Another argument is that Chicago last week various speakers warned a the present set-up brings the Government meeting of the American Management Asso that seems to be the conclusion of all reputable economists. It is the conclu into labor disput{es in a partisan role. ciation that the future of the free-enterprise Actually, however. no evidence bas been system depended upon business and in sion of the Economic Council which has produced to show that the Conciliation Serv· dustry improving their human relations with been established by the Congress under · tee has functioned either as a prolabor or as the public: that is, with their workers and laws enacted last year. It seems to me their consumers as human beings. Top man a political agency. On the contrary, there that no one can look at the situation 1s much tes ~:mony on the record from agement was held to be fumbling the ball in spokesmen for management and labor that this important and difficult field. In the lob confronting our country today without bies of the same hotel and in the nearby realizing that unless we curb the expan the Service as currently constituted has sion of monopoly, unless we make an functioned impartially and effectively. One business offices and streets of Chicago's of the few recommendations upon which the famous Loop, the nerve center of the great effort to bring about a better and more President's labor-management conference of Midwest industrial and agricultural regions equitable distribution of the proceeds of 1946 could agree called for reorganization which come together there, this reporter industry, serious conditions will plague of the United States Conciliation Service to found strong support for such a view of the us in the future. Undoubtedly if the current public relations of the American eco the end that it will be established as an nomic system. conditions which prevail today continue, effective and completely impartial agency a serious recession, if not a serious de within the Department. Mr. President, that is the consensus pression, will occur which will create a The reorganization of the Service within of opinion of a group of businessmen very dangerous situation. the Department bas taken place; its effective whose interest in the management-labor ness iS attested by the settlement of more No fair-minded person can deny the than 13,000 disputes last year, and there is problem cannot be doubted. conclusions stated in the New York Times no complaint of partiality. So why take it Mr. PEPPER. Mr. President, will the article. What we need in this country out of the Labor Department? Another pro· Senator yield? is an end to the struggle between labor posed change which deserves more scrutiny Mr. MURRAY. I yield. and capital for dominance. Only is the provision for a 60-day waiting period Mr. PEPPER. I am glad the Senator through a spirit of cooperation will we before a labor contract can be abrogated. At from Montana referred to that enlight be able to overcome the dangerous best, the usefulness of this is dubious, and many experienced negotiators believe that tt ened and forward-looking attitude on the economic difficulties confronting the actually makes· more difficult the adjust part of some businessmen. No doubt country today. ment of disputes. • • • their point of view is that business is Mr. President, let us act now to make The Conciliation Service bas been doing a · already enjoying the highest profits it those amendments which are justified good job. But Congress now is considering has ever gained in the Nation's history, and required and which the whole coun a reduction in its funds and a complete and that if anything_ were done at the try will approve, and leave the question- revamping of its organizational structure. 4358 CONGRESSIONAL RECORD-SENATE MAY 1 That is from the Washington Star, ExHmiT A More than 57 percent of the total value of which is recognized as Qne of the lead· INDUSTRIAL MERGERS manufactured products was produced under conditions where the four· largest producers ing independent newspapers of the (By Robert E. Freer) of each product turned out over 50 percent country. DANGEROUS TREND TO MONOPOLY of the total United States output. One-tenth In conclusion, Mr. President, I. wish (EDITOR's NoTE.-Mr. Freer is a member of of 1 pet:cent of all the firms in the country to reemphasize some of the points which the Federal Trade Commission and a trustee in 1939 ~mployed 500 or more workers and ac I have made in my remarks so far. of George Washington University.) counted for 40 percent of all the nonagri First, let me say no Senator on this We have a declared public policy regarding cultural employment in the country. One side of the aisle will dispute the propo· monopoly that is rooted in the principles of third of the industrial research personnel the common law and which has been em were employed by 13 companies. sition that there is need of some correc· More merger..: and acquisitions in the man tive legislation in the field of labor· bodied in and implemented by a series of antitrust statutes, including the snerman Ufacturing and mining industries took place management controversy. The minority and Clayton Acts. But in the dynamic de in 1946 than in any of the previous 15 years. members of the committee have set forth velopment of industry based on modern tech In 1946, the number of mergers were 26 per in their statement of minority views the nology, the facts of concentration constantly cent above the number' in 1945, and 225 per provisions of the bill which they believe tend to outrun the law. cent ab.ove the annual averagn of the years 1940-41. Years of greatest business activity to be constructive and acceptable. We The factual diagnosis showing the relation and high-price levels are the years in which agree with the President that there is of corporate mergers to concentration is as the greatest number of mergers take place. need for an investigation of the whole complete and as exact as specialists in the In 1920, the number of mergers increased field of labor-management relations. field can make it. Today's choice is one be- _ more than six times over the number during tween legislative actidn recommended by the 1919. We believe that machinery should be set Federal Trade Commission to plug a loop up for procuring adherence to collective· The stock market crash of 1929 which her hole in the present laws against such mergers alded the onset of the great depression was bargaining contracts. We think it is and continued frustration of our declared prec ded by a great wave of corporate mergers fair to provide that it should be an unfair public policy. and a wild speculation in their securities. labor practice for a union to interfere Simply stated, the Commission's proposal Today speculation in the future of merged in the designation of employer repre· is that the Clayton Act be so amended that concerns, supported by war-swollen profits, sentatives. We are of the view that acquisition by a corporation engaf:~d in in is again operating as one of the important carefully drawn legislation restricting terstate commerce of the assets of a com causes of the present upward trend in merger peting corporation also engaged in -inter activity. This speculation, which stems jurisdictional strikes and unjustified-sec state commerce be made unlawful where the from the expectatwn -of greater profits re ondary boycotts should be enacted. We result tends to monopoly. Presently only sulting from the elimination of formerly think that employers in dealinr with stock (not asset) acquisitions so tending are competing concerns, leads inexorably to the their employees are entitled to liberty of unlawful under that act, and legal actio11s elimination of our competitive economy and speech, which does not under the cir against even such unlawful acquisitions thus to the elimination of the possibility of cumstances contain any threat of re easily may be defeated. legitimate speculation. prisal or force or offer of benefit. We More than 1,800 formerly independent AsSUming as we must that the Govern ma~ufacturing and mining concerns· have ment, acting in the general public interest, believe that the clarification in the re .been swallowed up through merger and can, if Congress so directs, prevent the fur lations between Federal and State labor acquisition since 1940. Their combined ther growth of monopolistic power through relations boards providect for in the bill asset value was $4,100,000,000, or nearly 5 mergers of competing corporations, the represents a wi&e solution to a dimcult percent of the total asset value of all manu question is one of ways and means of halt problem. We recognize that there are facturing concerns in 1943. Moreover, · it ing mergers that tend toward monopoly re was the larger corporations, each having as gardless of whether consummated by sale other provisions in the bill which, either sets of over $5,000,000 (in many instances of stock or of assets. as they stand or with appropriate achieved through earlier acquisitions) , that When section 7 of the Clayton Act was amendment, would improve procedures accounted for some three-fourths of these passed in 1914, it was assumed that con of collective bargaining. recent 1,800 acquisitions. summated monopolies could be dissolved The dimculties with the proposed bill The war contributed powerfully to the under the Sherman Act, pursuant to the Su do not arise out of any belief that the trend of concentration. Government pur preme Court's decrees of dissolution in the problems with which it deals are not chases and Government financing of produc Standard Oil and American Tobacco cases tive facilities were channeled predominantly decided in 1911. It was assumed that the proper subjects for Federal legislation. into the band of corporations which already only remaining problem was how to prevent They go rather to the methods pro occupied positions of dominance. Surplus the formation of monopoly. posed for dealing with those problems profits created by such channe!ing have con However, about the time that the Federal and t.he remedies which are provided for tributed powerfully to the trend by provid Trade Commission began to institute anum violations of the proposed legislation. I ing funds for additional wartime and postwar ber of proceedings for enforcement of section think it is a serious mistake, for E.Xample, expansion through acquisition of former 7 the Supreme Court interpreted the Sher competitiors. Out of $175,000,000,000 of Gov man Act to mean that huge size and power to remove the Conciliation Service from ernment contract awards between June 1940 acquired through acquisition of competing the Department of Labor. As I have and September 1944, $107.000,000,000, or 67 corporations did not necessarily violate the said, I see no need for such a proposal, percent, went to only· 100 of the more than act and that it was only the abuse of such and I believe that it will have detri 18,000 corporations receiving such awards. power and not its existence which would mental effects on the functions of the During the wa:r 68 corporations receiv~d two make such acquisitions unlawful. A few Government's mediation and conciliation thirds of the $1,000,000,000 appropriated by years later when the Commission's cases the Government for research and develop under section 7 reached the Court, it was activities. The great vice of the bill now ment purposes in industrial laboratories. held that the Commission had no power before us is that while dealinc with legiti The most recent information on the war under section 7 to halt the incipient mo mate problems it strikes down legitimate time growth of concentration available from nopolies where the unlawful acquisition of rig,hts and sets up illegitimate remedies. the 3ureau of Internal Revenue shows that stock was followed by an acquisition of the I urge a more constructive approach to the larger manufacturing c.orporations, those physical properties without which the stock with assets of $50,000,000 or more each, in had no value, and where this was done be this irr~ portant national problem to the fore the Commission could complete the end that we may bring about a spirit of creased their share Of total assets from 42 percent in 1939 to 52 percent in 1943. hearings and enter its order requiring' di genuine cooperation and an end to the The degree of prewar concentration in the vestiture of the stock unlawfully acquired. senseless warfare between capital and economy as a whole and in manufacturing The practical status of section 7 is that no labor which is demoralizing our whole industries in particular was stated in the matter how unlawful an acquisition of ~tack economic system. in a competing corporation may be, the report of the Senate Small Buslness Com remedy provided by the statute easily can I urge that if we seek industrial peace mittee, submitted in January 1946: be defeated, leaving the acquiring corpora we should proceed to the enactment of The 200 largest nonfinancial corporations tion in possession of the assets which are that character of legislation which is owned about 55 percent of all the assets of all the fruits of its unlawful acquisition of soundly devised to remedy clearly estab the nonfinancial corporations in the country. stock. And if the assets are acquired di lished abuses; legislation which will be One-tenth of 1 percent of all the corporations rectly without any intervening acquisition owned 52 percent of the total corporate assets. of stock, as has becqme the prevailing consistent with the protection of labor's Less than 4 percent of all the manufacturing method, there has never been any legal bard-won rights of organization and corporations earned 84 percent of all the net ground for a contention that this was pro free collectiv~ bargaining. profits of all manufacturing corporations. hibited under section 7. 1947 . CONGRESSIONAL RECORD-SENATE 4359 .Tll'lS the brave start. under the Clayton from the President of the United states 16, 18, 19,26,21,22,23,24,33,87,38.39,40,43, Act. has ended in complete frustration. And transmitting so-called Reorganization 44, 45. 46, 47, 48, 50, 51. 52, 58, 54, 55, 56, 57, at the same time. the Sherman Act has been Plan No. 1 of 1947. The message is of 58, 59, 60, 61, 62, 63, 64, 65, 66, 6'1, 68, 69, 70, so construed,. that it. seldom has served to 71, 72, ?8, 74, 75, 76,. 77, and 78, and agree to unscramble corporate mergers, no matter how considerable length. Without objection. · the same. · gre!l-t the size and po.wer of the acquiring. or it will be printed in the RECORD andre Amendment numbered 13: That the House of the consolidated corpora:tion. The con ferred to the Committee on Expenditures ~ecede from Its disagreement to the amend trast between the rapid evolution · or eco in the Executive Departments·. together ment of t.he Senate ·numbered 13, and agree nomic concentration o:f power and the feeble with the accompanying paper. to the same with an amendment as follows: ness ~nd slowne$8 with which effective legal There being no objection. the message. In line 7 of the matter Inserted by said remedies have been and are being applied is together with the accompanying paper. amendment strike out the ftgure ..$20,000" and st~iking. It is sUfiicie.nt to call in .question insert in lieu thereof ••$15,000"; and the Sen the reality o! our faith in the validity of the was referred to the Committee on Ex ate agree to the same. competition presupposed by the free-enter penditures in the Executive Departments, Amendment numbered 1"1: That the Hou~e prise competitive system. and the message was ordered to be recede from its disagreement to the amend A paradoXica1 aspect of this problem fs printed in the RECORD. ment of the Senate numbered 17, and agree that while corporate mergers and acquisi things that .they~ deem to be to their own t-he mise of a man.-who sits down with a in· that case the man signing the. con - interest and to the public interest. labor leader and - says, · "I- will employ tract is· made to give tip the right which Yet the pending measure .would deny nobody in-my plant, I will exclude mil the has to join a union. But in the case to management and labor the right to lions of people· ·who may want to work to which I refer, the two groups are write their own contract. Is not that an for · me,' unless you say I can employ merely permitted to get together to undue intervention into tlie afi'airs of them, unless they are members of your agree that all the workers in the given management and labor? There are union." Certainly it .is perfectly within plaht sh;tll belong to the union, that the many insta::.ices where management the range of public policy to say that that management wil1 recognize the union, would not give up the closed shop, be limitation on the right of contract, ·not and that everyone who works in the cause it has found ·it to be· to the best between the individual workingmen and plant must meet the condition which interests of the enterprise. Yet, the the employer, but between a man who they jointly have laid down, namely, Senate of the United States is asked by happens to be president of a labor union membership in the union. I submit that its committee to outlaw that kind of a and the employer. is against public poJicy. that is a valid distinction. provision in a contract between manage As a matter of fact, in the pending Mr. TAFT. Mr. President, will the ment and labor, however freely it may measure. we do not go that far. But I can. Senator further yield? have been entered into between repre see no legitimate argument, from the Mr. PEPPER. I yield. . sentatives of the two .groups. Senator's point of view, that this is in , Mr. TAFT. Let me call the Senator's · Mr. MAGNUSON and Mr. TAFT ad- any way an interference with the free attention to another limitation of con~ dressed the Chair. - right of contract. -tract, namely, the Wagner Act · itself. The PRESIDING OFFICER. Does . Mr. PEPPER. Mr. President. I should Can the Senator from Florida imagine the Senator from Florida yieid; and if like to try to answer that· argument of any, greater limitation on the right of so, to whom? · the Senator .from Ohio. The yellow-dog , contract than the Wagner Act, which Mr. PEPPER. I yield, first, to the contract was, generally speaking, a con says that an employee cannot deal with Senator from Washington. tract between one -prospective employee his employer -except through. someone Mr. MAGNUSON. Mr. President, I and ma·nagement, the heads of which whom he may not recognize as in any wish to ask the Senator from Florida represented all the stockholders, and way representing· -him? The Wagner whether_, sucq a provision does not in. were chosen by. the- stockholders, -and -Act says that employee A cannot enter itself ,have some features of illegalitY.? tbey represented the concerted power of into a contract with his employer B, but In effect,. that provision of the law would all the 'dollars which were .invested- in that"the employe'r must deal with some- : -say to you. and. to· me that .we cannot. the particular .enterprise.' - Ordinarily· one elected b3' a majority- of the em write. a. contract that is ·-legal· in itself, th~t was. _the ca_se, .and that one· man· was · - ployees, against whom employee A may thereby 'denying us our· fundamental required . to enter into a contract to the; have voted wh-en he had a chance to legal rights. · ·· effect that he .accepted as a conditien of ~ote J>n. the question ·of electing persons Mr. PEPPER. Mr. President, it seems employment·.in . that· enterprise the giv to represent him.· Can the Senator to me inescapable that tha.t ,is .the effeet i·ng \lP of what· I regard as an essential from Florida imagine any greater· limi ot the proposal to which I hav·e adverted civil right which he had as a citizen to tation on the right- of contract· than· an , I now yield to the Senator from -,Ohio. ·enter into contracts with other people, . act. which says that A, an employe'e,- a Mr. TAFT. 'Mr: President, I ·wish to :to enter. into relations Y.,itli other pe~ople, f~ee 1\mer.ica:t).. .citizen,_cannot even go point out .that the Senator did. not ob-..: that might· be desirable to him. In sup to his;employer and make a contract with ject, ·however, to the fact. that the· law his employer about the terms of his em- port of my point I· cite the opinion of the . ployment? · · ··prohibited an employer and an employee Supreme Court in J. 1: Case. Co. v. Na from writing a·contract which precluded tio-nal Labor Relations Board <321 U. S. - Mr. PEPPER. Mr. President,. there, ' the employee from joining a 'union.- That 332>: ~gain, I urge that there is a distinction; certainly is · a limitation of contract. · and I remind the -senator from Ohio that The very purpose· of providing by statute Furthermore we do riot hesitate to limit for the collective agreement is to supersede before ...the ·Wagner Act was passed, ·an contracts _if what is contracted for is the terms of- separate agreements of em individual stockholder in a corporation against public policy. · ployees with term: which reflect the strength had no legal right to negotiate about · Mr. PEPPER. Mr. President, I con- and bargaining power and serve the welfare corporate affairs with the employees of tend that it is not contrary to public of the groups. the company. The law. has already de policy to let the representatives of labor ter:mjned that . when the stockholders and the representatives of management I make a distinction, therefore, and acted witp respect to the employees. they write a contract governing· their · rela then I wish to make a second point; and had to act through their chosen repre tionships and governing employm'ent then I sh~ll yif:lld further to the Senator sentatives; . ·Ghey _could not act individ conditions in ·a given tndustry. I think from Ohio. I make a distinction be ually and in that way make a contract. the workers have a right to determine tween a case where the chosen represent . All that the Wagner Act was ~doing was ·the standards and conditions upon which atives of management si~ d(jwn with the putting the two on a basis of parity,. rec they will work'in an industry; and I think chosen representatives of labor and agree ognizing . that if $1,000;000 was speaking that management, as a' proprietor, like to general conditions governing the rela through the president of a corporation, if wise has a right to determine what the tionship of those two groups. and the an arrangement were not made so that conditions shall be; and when the two laying down. of conditions with respect the employees could likewise act cooper agree upon mutually satisfactory condi to other people not parties to the con atively and speak through their repre tions, I do not deem it to be in the in tract, and who, I insist, have no·inhereht sentatives, there would not be equality terest of public policy that the Con right to become a party to -the contract and fairness of bargaining between the gress declare what they·have done to be or· a member of that enterprise. I dis two groups. illegal. tinguish that case from the case set forth On this point the United States Su Mr. TAFT. Mr. President, will the by the Senator from Ohio, where man preme Court pointed out, National Labor Senator further yield? agement, representing all the dollars Relations Board v. Jones & Laughlin Mr. PEPPER. I yield.- invested in the enterprise, makes as a Steel Corp. <301 U. S. 331), that a single Mr. TAFT. I wish to point out that condition to the right of one man to employee generally was helpless in deal we have long since outlawed the so-called work in that enterprise his giving up of ing with the employer on whom the em yellow-dog contract, in which two men, a : civil right, which I believe he has, ployee was dependent for his daily wage perfectly willing to do so, sit down to namely, the right to associate himself for support. Union was essential to gether and make a contract for the em with other people in a labor union, or the give laborers opportunity to deal on an ~Ioyment of the prospective employee, right to do othe-r things he believes to be equality with their employer. and he contracts that he will not· join a for his best interests. _ So, Mr. President, I remind the able union. We said that was against public Therefore, Mr. President, I lay down · Senator from Ohio that long before the policy, so we outlawed it. We limited the the premise and the proposition that the _Wagner Act ever was passed, a stock freedo.m of contract in that case. two cases are not ·analogous, but that holder had absolutely no power or right So why should not we also limit the there is legitimate reason to strike down to enter into a contract about term~ of freedom of contract; if we wish to do so·, the case cited by the Senator-from Ohio employment with the workers in an en if we think that is the proper policy, ·in as being against public policy, because terprise in which he-was a stockholder. XCIII--276 4362 CONGRESSIONAL RECORD-SENATE That right was submerged into the man Of eollecttve bargain1ng, found a basis for should be glad to· have any ca11ed to my agement of the corporation, which had reconciling their dif[erences. · attention-which have adopted any con .. to be chosen in a representative way. Just as I am not trying tp change the stitutional amendment or enacted any So we did not do for the individual Railway Labor Act, I oppose the effort of legislation outlawing the closed shop. I worker anything which had not long be the Senator from Ohio and those who come from the South, where I regret to fore been done for the individual stock are associated with him, to outlaw those say, we have not yet gained as large an holder, except we tried. at long last to agreements which are already in effect, organized labor force as I hope we shall put the two groups on something like an and that principle which has had such have, where our attitude toward labor equal bargaining basis. wide recognition in industry, and which organizations is not always as sympa Mr. TAFT. Mr. President, will the I believe is meeting the test of experi- thetic and understanding as I wish it Senator further yield? ence and efficacy in our economy. . were. Mr. PEPPER. I yield. Mr. HAWKES. Mr. President, will the I readily admit that many of the Mr. TAFT. I do not think the two are Senator from Florida yield? Southern States have adopted constitu in any way analogous. But I wish to Mr. PEPPER. I yield to the Senator tional amendments outlawing the closed say to the Senator that I am not arguing from New Jersey. shop. But I am a little surprised to see against the principles of the Wagner Mr. HAWKES. The Senator from the effort now to outlaw it nationally Act; I am merely pointing out that in Florida is extremely well informed on come from Senators representing some of the discussion of labor relations we have labor laws and the Railway Labor Act, the great industrial States, which could limited the right of contract in the case and I wish to call to his attention an inci have outlawed the closed shop if they had of a particular contract which is against dent that came to my attention regard chosen to do so, but 1ave not. public policy. So, on the question of the ing the attitude of union leaders. As I have said, Mr. President, I do not closed shop, or the limitation of the right About 30 years ago, I was told by Mr. know of any of the large industrial States of the closed shop, we are not plowing Alexander Whitney himself, a large where difficult problems of management any new ground. group of railway employees met at con.: and labor are constantly dealt with, I wish to suggest to the Senator also vention in Cleveland and a resolution was where there has been a long record of that the Railway Labor Act has worked presented to the convention which in experience in this field, where either by very well, and it contained a prohibition simple terms provided that no one constitutional amendment or by legisla against the closed shop. That prohibi should be permitted to work on a railroad tion the closed shop has been outlawed. tion has been in effect for years in the unless he became a member of one of Nor has the Congress done so in the past. railroad industry, and the Senator has the railroad brotherhoods. The presi- We have left it up to the parties. never protested, so far as I know, against . dent of the organization was present, and I am aware, of course, that the present that provision of the Railway Labor Act. before -there was a charice for adoption law does not require any employer to Mr. PEPPER. No; I have not pro of the resolu ·~ion he stepped to the front enter into a closed -shop agreement. The tested against that, because, apparently, of the platform and said, "I ask the gen National Labor Relations Act at the the workers have been satisfied with the tleman who has made the motion to present time does not require any em law under which they operate. It has withdraw it, because i consider it inim ployer to enter into a closed-shop agree had a long history, and evidently it has ical to the best interests of the men ment with his workers. It is a matter of worked out all right. Nor has the Sena working on the railroads. The American free collective bargaining. Freedom of tor from Ohio offered any amendment people do not want the closed shop. They contract is allowed. Freedom of agree to any other provision of the Railway do not want anything forced on anyone. ment is permitted to management and Labor Act, so. far as I know. We have I ask that the motion be withdrawn, or in to labor. But if, in the exercise of their accepted that act as it was written, un the event of its. not being withdrawn, I discretion if, because they mutually less some initiative came to us from one ask for its defeat, because in my opinion agree that it is desirable and in the pub group or the other. I think the act is our great objective in · the railroad lic interest, they put such a provision in working satisfactorily. · brotherhoods should be to make our a contract, it is legal today, and it will But I also desire to remind again the unions so good, and make them deliver continue legal unless the pending bill able Senator that more than half the so much of value to the membership, that shall become the law of the land, in collective-bargaining agreements now in we will not have to force men to join, but which case it will be outlawed. effect, and there are millions of workers they will join because they want to be Mr. President, I protest against that covered by them, contain a p.rovision for come members and receive the benefits." kind of policy. I protest on the part of management, as well as on the part of the closed shop, and they are also work- I am merely repeating to the Senator ing all right. . labor, because management does not what Alexander Whitney, who is well have to enter into the contract unless it I should like to read a paragraph from known to him and to me, a man I have a bulletin of the Bureau of Labor Sta known for a number of years, told me chooses to do so. Mr. LUCAS. Mr. President, will the tistics called Union Security, ·published himself~ He is old enough to have been in September 1946: at the convention, and he recited what Senator from Florida yield? The first step toward "union security" may happened. The resolution providing that Mr. PEPPER. I yield to the Senator be said to have been accomplished when an .no one could work on a railroad unless from Illinois . employer voluntarily, or following National he belonged to one of the unions was · Mr. LUCAS. Was there any evidence Labor Relations Board certification, recog withdrawn. before the committee disciosing the posi nizes the union as sole or exclusive bargain- · tion of any part of management upon ing agent of the workers in the bargaining Mr. PEPPER. I thank the Senator the closed shop? unit of the plant. Following recognition, the from New Jersey. He always makes a Mr. PEPPER. There is a difference of employer and union, or their representatives, valuable contribution to a discussion. opinion. to enter into collective bargaining determine I realize that there is a difference of Mr. LUCAS. I understood that there the terms and conditions of employment, opinion about the matter of the closed including union security going beyond sim was a · difference of opinion upon the ple recognition. The position of the union shop. I want Senators also to know that question. is bas&d upon the simple proposition that all I come from a State where a constitu Mr. PEPPER. In some instances man workers who share the benefits of the col tional amendment has recently been agement opposes it very strongly, and in lective agreement should at the same time adopted outlawing the closed shop. I other instances management has the share the costs and obligations of the union. voted against it, and I declared publicly closed shQP; its experience has been com Membership 1n good standing in the union against it when it was up for considera pletely satisfactory, and it would not is regarded as the principal obligation. For tion. I am still against it. I think it is give it up today. the most part, management has opposed bad law, that it is undesirable public union security because it has feared that the Mr. LUCAS. I asked the question in control over the supply and quality of its policy. What rather surprises me about view of the statement made by the Sen labor force would thereby be placed in the · the distinguished Senator from Ohio, ·and ator-that, after all, it was a matter of hands of the union. However, the thousands some of the other Senators associated voluntary agreement between the two as CJf union agreements which contain union with him in sponsoring the pending legis to whether or not they would have a security provisions of one type or another lation, who come from the large indus closed shop. afford ample evidence of the fact that em trial States, is that I do not know of any Mr. PEPPER. I will say, Mr. Presi ployers and unions have, through the process of the large industrial State~and I . dent, as I sh.owed a while ago, that the 1947 . CONGRESSIONAL· RECORD-SENATE· 4363 proportion is about two-thirds to one .type outlined by the able Senator from If the Senator had in mind that tl1e third, but I am correct in saying that Florida that legislation is believed to be workers will use their economic pressure more than half the collective-bargaining necessary at this time. , upon the employer to get him to enter agreements in force have the closed Mr. PEPPER. I thank my distin into that kind of contract, I freely and shop as part of the contract. That fact guished friend from California, but I re frankly admit that it is true. But I had indicates that the employers must have spectfully submit that the Senator over a case here, when I spoke, day before found it agreeable. looks two factors. The first is, he said yesterday, from which I read the opinion Mr. LUCAS. They can either have the "The contract is laid before thr. employ by Mr. Chief Justice Taft. I read it to closed shop or they can deny the right er, regardless of whether any member my able friend from Ohio, so that he of the closed shop, depending upon col wishes to join the union or not," or might near it, and hear it again; be lective bargaining, and what the two something to that effect. I re<>pectfully cause I thought as fine a .statement was parties agree upon. submit that that case is not likely to oc laid down by President Taft, who was Mr. PEPPER. Exactly, and I maintain cur often, if it ever occurs, for th(:; reason t:':len Chief Justice of the United States, that is as it should be, and that we will that a collective-bargaining agreement as was ever made by any judge, in which have a greater degree of industrial peace . does not result unless ordinarily it is a he said labor organizations had the right, following that method than we will have case in which the union, or the em and workers had the right, to use the by disrupting the policy which has been ployees, through a free election super economic power that they have, the right in effect for more than a decade, ever vised by the National Labor Relations to quit work even, to better themselves since the National Labor Relations Act Board, have chosen a bargaining agent, in their relations with their employer. was enacted. I say that we will have and then, when they have chosen the ~o I am sure the Senator from Califor more work stoppages as a result of t'ry bargaining agent, the agent has sat down nia would not deny to workers the law ing to tear up those contracts and re with the employer and entered into ne ful use of their economic power, which make them under the restraints the bill gotiations leading toward an agreement. would include even the right to stop contemplates-and I shall refer to them So, as I see it, there is, as a premise, a work. I realize, as I said, that there is later-than if we leave the situation as union. The employees had a union, or a difference of opinion about the matter, it is at the present time, and profit by the they choose a collective-bar.gaining agent and I never h.ave intentionally quarreled experience we have already gained. if they did riot have a union, and then with anybody wh:> takes a contrary Mr. KNO"NL.C:.. NL. Mr. President, the agent entered into negotiations with opinion about anything. I ascribe, of will the Senator yield? the employer. course, to othec Senators and other citi -Mr. PEPPER. I yield. The second point is that not long ago zens the right to their views, and I know Mr. KNOWLAND. I think the' Sena the National La·bor Relations Board, in a they are· just as sincere in them as I hope tor has made a very able argument, in case coming up from Florida, the St. Pe they will credit me with being in respect sofar as those cases are concerned, in tersburg Times case, held that labor was to mine. I know this is a controversial which management and labor sit down under a duty to bargain in good faith subject, but I have never seen it exactly together. and formally negotiate such a with the employer. Although the pend the way many see it. I see it largely contract as the Senator has outlined. irig bill recites that. it is the duty of em this way: I s~e it from the point of view That is true collective bargaining. But ployees and employers to bargain with of the great number of workjng people I am sure· the Senator would not want each other in good faith, that is not nec in a given plant, or in the country as a to leave the impression that there have essary, and as I understand it. tt adds whole. Other Senators see it in terms of no· been situations of a far different nothing to the law as laid cown by the what they believe to be the just rights kind, in wl1ich, instead of there being National Labor Relations ~oard in that of an individual man or woman who true collective bargaining, there has been case. The case made it clear that the comes to a plant, wishes to get a job, and in effect "collective bludgeoning," in employees had to bargain in good faith, is told, "You cannot get a job, unless you which representatives of labor organi in a true collective-bargaining spirit, belong to a union." If Senators look at z. ,tions have gone to employers, when with the employer. ·Of course, the Board the matter from the viewpoint of the every single employee ha~ indicated that has in the past required the employer to greatest good for the greatest number, he c-- ~ not care to belong to a labor observe the same standard. I cannot which is a basic principle of democracy organization, and by a process of "col say, of course, what is the discharge of and certainly the faith of my party, then lective bludgeoning," to use that term that duty by employees or by eml.lloyer; I believe there will be achieved· the great again, have told the employer that un that is a matter of degree, but I think we est good for the greatest number by rec less he signs a closed-shop contract are coming to a recognition of the fact ognizing the right of the greater number there will be no future deliveries of ma that when any party to a dispute merely to organize themselves into a bargaining terials to his factory or his plant. That takes an adamant position, refuses to unit, to choose representatives, to have is certainly far from being collective bar hear argument or to consider merit, their representatives sit down with rep gaimng in the sense that the able Sena marches in and throws something down, resentatives of capital employed in the tor from Florida has outlined it here sits down in a chair and. freezes up, and particular enterprise, and work toward today. says, "Take it or leave it," that is not an agreement which will be mutually Mr. PEPPER. I thank the Senator. collective bargaining or. the part of satisfactory. In my opinion, such a Yes, of course; the case he puts is dif either management or employees. provision as the closed shop should be a ferent from the one I contemplated. But I am assuming, and I think I am permissible portion of such agreement. But is not the able Senator from Cali I see, as I said, what it means to the fornia thinl.:ing of the boycott case, in correct in assuming, that the law today which a group of employees other than is as I have stated it; and .~. am saying workers. I see better wages, and I see, employees in Jolved in negotiations with th~t more than half the collective-bar Mr. President, better working conditions. their employer, through the boycott, use gaining agreements now in effect evi I do not like to advert to it, but I plowed their economic pressure upon the em dently have included closed-shop or on a farm for 65 cents a day. I worked ploye:- to make him enter into a certain union-shop provisions, and I suppose in a steel mill 12 hours a day, 7 days a kind of contract with his employees? most of them have been renewed from week, and that was minor compared to Mr. KNOWLAND. There are a num time to time; management has found what many men in the darker days have ber of cases of that kind, but the end re them acceptable and satisfactory. If it had to do. I do not claim that mine was sult is the same. If, instead of negotiat has, then it has a right to enter into any especial hardship, but, as one looks ing in the true collective-bargaining them again, and should not be denied back to the dark economic days in this spirit, a union agent goes to th,e employer the right by the pen din€; bill. If it wishes and in every other industrial country in and lays a contract on his desk and says, to get rid of the collective-bargaining the world, he looks upon those periods ''Whether or not a single one of your agreement, it can do so when the con sometimes with shame, always with re employees is interested in joining the tract runs out. If it wishes tc get rid of gret that we did not earlier come to n union, you will sign this, or else," there the closed shop, it does not have to renew recognition that we shall all get along is not in that case collective bargaining a contract containing that provision, better if we give men and women bet in the sense that the able Senator from when the contract runs out; and that is, ter wages and better working conditions, Florida has in mind. It is because of in my opinion, the privilege which U and a fairer share of the income of an that type of -situation rather than the should have. enterprise. 4364 CONGRESSIONAL .RECORD-SENATE MAY 1 Mr. HAWKES. Mr. President, will Mr. HAWKES. I do not pretend that people, up to date as a g·eneral rule, the Senator yield? every view I may hold or every belief I have worked voluntarily because they Mr. PEPPER. I yield to the Senator may entertain is infallibly correct. All wanted to, because they were interested from New Jersey. of us, I believe, are trying to do a decent in their work. Their work has been Mr. HAWKES. I want to join the job in the .interest of humanity and the more than simply making a living: In Senator in the statement that any Amer workingman, who, after all is said and my company, we have had only one turn ican, or anyone else, engaged in business done, is the salt of the earth and the over in 28 years. More than 40 percent . today who is not interested in the welfare backbone of America. The workingman of the workers in my company have beep of the workers of the country is not fit of today under our great system, if he is with the company more than 30 years, to be at the head of an organization. thrifty and saving and persevering, can and that notwithstanding the fact that Mr. PEPPER. That is a characteristic become the capitalist of tomorrow. Mr. many were forced to leave our employ statement by the Senator from New Lincoln said that. and if it was true when ment by the war. That is a wonderful Jersey. he said it it is equally true today. But record. It can only mean one thing, Mr. HAWKES. The only difference I think the greatest thing we have to do, that the workers wanted to stay there, between the Senator's opinion and mine far greater than any law which may be and that is a spirit we must try to estab possibly is that I think the result can passed, is to try to reestablish respect lish all over the United States. be accomplished better by maintaining between worker and management, em I thank the Senator. freedom of the right to work. I want ployer and. employee, and to build it on Mr. PEPPER. I greatly thank the to tell thf! Senator something, if he a foundation of justice. The Senator's Senator from New Jersey for the very would like to have me do so. ideas and mine might differ as to what fine sentiments he has expressed. I will Mr. PEPPER. Gladly. . would constitute justice, but, in my opin say that if all the business executives of Mr. HAWKES. A few years ago-I ion, it should go just as far as it can go the country took the attitude he takes should say about 7 or 8 years ago-there and fit into the economic circle. In other toward management-labor relations., I do came to this country the president of words, there must be profits which are not think we would need any laws at all the Railway Clerks Union of England. paid upon ·capital. Capital, if it is hon on the statute books. That would be an If I · remember correctly, his name was est capital, is nothing in the world but ideal situation. It would create a situ Brown. His union had a membership of stored up labor. It is something, or ation like that existing in a partnership. 90,000, which is a union of considerable ought to be something, that came from When one enters into a partnership with size for England. He made a speech in work in the past. Some fairness must another. the partners are supposed to Philadelphia in which he said he was be found in the economic circle for capi deal honestly and fairly with each other. very strongly opposed to the closed shop tal, in order to make it come out for Generally no rules are laid down as to because, in his opinion, it destroyed the venture investment, unless there is to be how to negotiate and carry on affairs to rights of the individual members of the resort to Government ownership and gether. So long as the partners deal organization to better conditions and socialism. Enough must be found in the honestly and fairly with each other they improve the quality of leadership. He economic circle for labor, to stimulate have complete freedom of action .. said, "Unless the members of my union labor and make it feel it is being treated The Senator from New Jersey is abso have the power to resign without losing fairly and to make the individual work lutely correct in saying that what we their jobs, they cannot effectively pro ers believe they are adequately paid for need is to find a new basis of under test against my poor leadership." He their service. But, above everything standing of each other's point of view further said, "I believe the future wel else, respect must be established be and problems. Sometimes no doubt fare of the working people lies in having tween employer and employee. labor overlooks the responsibilities.which good, intelligent, law-abiding leader I have broken into the discussion management has, the sleepless nights of ship." · without having marshaled my thoughts, the man who has all his savings invested I am sure the Senator from Florida but I wish to leave an idea with the Sen in his enterprise. There is no doubt agrees with that statement. ator from Florida and the other Mem whatever that there are numerous cases Mr. PEPPER. I thoroughly subscribe bers of the Senate. I have talked with of workers who lack the sympathy they to it. thousands of laboring men. The thought should have for the employer. That is Mr. HAWKES. I wish to say another I wish to leave with the Senate is that one of the tragic frailties of human thing to the Senator from Florid-a, be after we get through with the pending nature. On the other hand, there are cause I agree with what he has just legislation, which must not be punitive ellfployers undoubtedly who do not show stated. We all have our own ideas. I in its purpose, which must not be based the concern for their workers they should have no feeling against. anyone who upon vindictiveness, hatred, or reprisal, exhibit. It was only a little while ago honestly differs with my viewpoint. Im but must te in the interest of the Ameri when it was customary-and I am afraid mediately after I was elected to the Sen can people as a whole--after we get I must say that there are a few who today ate, not more than 3 or 4 days thereafter, through with this legislation we, as embrace that view-to treat labor as a I received a letter signed by 18 union men American citizens, and all other decent commodity, to believe ·that the working in Paterson and Passaic, N. J., and this · Americans who have a just regard for power of men and women was something is what they said in their letter: humanity have got to try to reestablish to be sold like potatoes in the market DEAR SENATOR: We are glad you were the necessary element I am talking place for the highest price that could be elected. We all voted for you. about-a little brotherly love between obtained for it. It was not realized that We are 18 union members who belong . employer and employee. the man standing before the employer either to the A. F. of L. or the CIO. Mr. President, I have enjoyed the as applying for work had a wife and per The letter continued: sociation and the relationship with my working people more than anything I haps some children; that there might be J We waiit our right to organize. We want illness in his home; and that there were our right to bargain collectively. We w.ap.t have had in my life. I have always at tended their annual dinners at their re medical and other expenses which had our right to strike lawfully in order to show to be shouldered; that the children had our resistance against unfair treatment. quest, and as their guest, and I have al ways spoken to them and tried to speak to ba educated; that they had wants and What follows is the main point of their fairly, tried to help them to be better human desires; that they were not po letter, and I consider it to be a remark American citizens, and I am sure they tatoes, were not inanimate. They were able statement: have helped me to be a better one. But made in the image of God, Mr. President. But we do not want dictators in labor lead- I wanted to leave the thought with the They were the heart and soul of the . ership any more than we want dictators in Senator from Florida and the Members Nation, its strength in peace, its might the United States Government, and we are of the Senate at this time, that after we in war, and their total strength repre looking to you, my dear Senator, to help get all through with this legislation we sented the power of the Nation. To deal relieve us of that dictatorship. all must contribute to re-create volun with labor as if it were a commodity, to The Senator from Florida has a very tary cooperation, because in the last buy it for the lowest ·price for which it keen mind, and a very thorough under analysis the only difference between this can be obtained, is the old attitude, not standing of this subject, and I am always great country of ours and the countries the new one. That of course is not the interested in listening to him. which have fallen into the quagmires of attitude of the able Senator from New Mr. PEPPER. I thank the Senator. socialism and communism is that our Jersey. 1947 CONGRESSIONAL RECORD-:SENATE· 4365 I hope we can bring about profit-shar Mr. HAWKES. Mr. President, will the wage dividends during the past 15 years ing plans and bonuses so that some day in , Senator yiE'ld? with this company. Why should I go an enterprise the workers will obtain Mr. PEPPER. I yield. into a union anci try to upset the e:fDciency what I like to call a drawing account, Mr: HAWKES. The Senator probably of the plant which in feeding me?, such as a traveling salesman has, so knows all this, but many persons in the l I wanted to tell that story because to much to meet the demands of the day, United States do not know that a great me it is one of the most outstanding and then periodically the worker will deal of thought has been given to the things in all American industrial life. receive a share of the profits on a fair profit-sharing plan. In mapy cases it is It :groves that we can better our human basis of distribution, and certainly, Mr. called the wage .. dividend plan. I do not relationsh:rs voluntarily. But there are President, I hope that the worker will know whether the Senator realizes that some who wilJ not go along voluntarily. be protected by an annual wage contract. in 1938, when I was chairman of a com In a great organization in the United Suppose that a certain enterprise is mak mittee to study the question of a wage States I was defeater'l by only two votes ing a great deal of money. It has, let dividend · plan, even 'then 258 corpora in an effort to recommend that plan to us say, 100,000 employees. It has great tions in the United States had already all industry in the United States. I can resources and big surpluses. Suppose adopted and had in effect a wage-divi not say what the vote would. be today. times become a little bad. It may do as dend plan in an effort to bring about That was back in 1938. many other enterprises do. Do they cut more harmonious cooperation between We must do something to bring about down the dividends? Do they diminish employers and employees. a better understanding. The difference the surpluses? No. Too many of them The device of the corporation is not between the Senator and me is that he let off so many more workers. What very old. The first corporations came feels that the closed shop is not an im is to happen to the workers? into existence probably 75, 80, or 90 years proper limitation on the liberties of men. I am not charging that is a pattern in: ago. The tlld definition of a corporation I feel that it is. I feel that we can ac industry. I say that too many follow was that it is an indivisible, intangible complish the objective without destroy that practice. Day before yesterday I being, existing only in contemplation of ing the maximum right of freedom in the quoted from a report presented to the law, without heart and without soul. I individual. I hold that conviction very Senate by the Committee on Labor and do not agree that a corporation has no firmly. Public Welfare. In that report it was heart or soul. A corporation has a heart Mr. PEPPER. I thank the Senator. recited that for 23 years the American and soul to the extent that the manage Obviously, in a case in which the em Telephone & Telegraph Co. had main ment makes it possible. ployer deals fairly with the workers there tained an unbroken record of a $9 divi I feel strongly that we must bring more is less incentive for the employees to join dend. Those 23 years included the de human understanding into the corporate a union than in an opposite case. Due pression. I related an incident which method of operating than we have had to the fact that too few employers took was told to me by a responsible man. to in the past; but we cannot bring in any the position which the able Senator has the effect that in the days of the de more than we can put into the economic described, we have had a tightening of pression, when President Hoover was circle. The Senator knows that, and he labor organizations. Undoubtedly in trying to ~neet the problem of the ap is not trying to contend otherwise. I some cases today there are abuses. ·How proaching depression, trying to dimin know of one company-! shall not men ever, in every industry in which there is ish its severity, he called Mr. Gifford to tion its name, because it might be em complaint that there are abuses on the Washington and made him chairman of barrassing-which since 1912 has had in part of labor, I think it will be found a committee to try to find· some way to effect a wage-dividend plan under which, that there are 10 times more abuses on arrest the falling level of employment, when the. corporation made more than the part of management until the union io give people jobs, and keep them in enough to pay a certain percentage of is strong enough to defend the worker their jobs. After a while Mr. Gifford dividend on the capital invested-which against such abuses. T could name some went back home, resigning the chair was fair-and reasonable going wages in industries in which it is said that there manship which Mr. Hoover had entrust the community, after setting aside a cer are labor abuses. Management, by its ed to him, and let out more than 100.000 tain amount for surplus to keep the com own failure to observe the high standard employees of his own company. pany in good shape, it divided the rest of duty and fairness which the Senator Mr. Hoover was right. H~ was calling among all the employees, from the lowest from New Jersey has described, has upon industry to sacrifice, not only for paid to, the highest paid, on the basis of brought such a condition upon itself. If the humanitarian principle of giving the their past 5 years' compensation as the power of the union were taken away, workingmen and their families a chance related to each other. that kind of management: in too many It may be interesting to the Senator to to live, but to keep America from being cases, would go b~ck to the old condi hurled into the abysmal pit of a depres know that· the employees of that corpo tions. But if there were some way to sion, which iii many casef wrecked busi ration have never been organized. There bring about the kind of management de ness as well as people. If the - story is not even a company union or an inde scribed by the Senator, it would be a which I have related is correct-and the pendent union The employees elect a happy day for industrial relations in committee report bears out the essential workingmen's committee every year, and America. part of lt-Mr. Gifford thought more of its membership differs nearly every year. Mr. HAWKES. Mr. President, will maintaining the $9 dividends than he did The committee takes up with the com the Senator yield further? of keeping more workers on the payrolls pany grievances and things which they and cutting the dividends to some other think should be adjusted. But there has Mr. PEPPER. I yield to the Senator figure. never been a labor union among the em from New Jersey. We have enacted minimum wage laws. ployees. All the national labor unions Mr. HAWKES. I will say to the Sen Many employers in my State did not have tried to organize them and have ator something which I have said re want to pay a fair minimum wage to failed. Why? The best labor organizer peatedly throughout the Nation, and in their workers. Some of them fought me in the United States might say to the which I believe, -that humanity is pretty bitterly in 1938 when I advocated the 28,000 employees working in the plant much the same whether it be in the ranks :minimum wage law. I was not trying to that the union would do great things for of labor or in the ranks of capital. If hurt business. I was merely trying to them if they would only join it. Their we could take a slice out of the center . help fix a floor below which wages should response would be that of any normal of labor and capital we would find that not faU. I thought that in the long run man. They would say, "Why should we each has about the same amount of self that. would be for the best interests of join a union?" The union organizer ishness. Of course, there are a thousand business as well as the workers. Today I might say, "We will g.et you more money." times as many persons in the ranks of do not know of an employer who opposed The employees would say, ''We do not labor as there are in the ranks of capital. that legislation in 1938 who would ask want more money. We have a fair deal." I shall not take up more of the time of that it be repealed at· the present time. The organizer might say, "We will get the Senator, but I know he will agree with Employers have seen the wisdom of the you vacations witb pay." The reply me that the business of the Nation can principle which the Senator from New would be, "We have them already." not be run with the heart alone, nor can Jersey has been discussing, the wisdom One of the employees might say to the it be run, in my opinion, with the brain of management and labor working to organi~er, "Do you see that lit-tle white alone. The brain is too cold· and the gether, each dealing fairly with the other. house on the hill? I paid for it with my heart is too warm. If we try to run 4366 CONGRESSIONAL RECORD-SENATE MAY 1 all the business of the Nation with think we must never forget that union of a State, every United States Senator, the brain alone it would be so cold that officials are elected by the workers and every Representative in Congress, every it would not function successfully; and that they have constitutions and bylaws. public ofiicial in America? Why do we if we should try to run it with the heart Personally, except in an honorary capac · lay down one standard or criterion of alone business would go into bankruptcy. ity, I never belonged to a union. From democracy for the workers in electing So my philosophy is that somewhere be personal experience I do not know, but their officials and another standard of tween the heart and the brain-maybe I think the men and women who belong democracy applicable to the members of just under the chin-there is a place to unions appreciate democracy as much churches, lodges, fraternal organizations, where the two things must meet in han as does anyone else. I think they resent and societies in electing their officials? dling the human equation. But we must tyranny, pressure, and coercion as much Why do we do that, Mr. President? If always use some of the heart and some as does the ordinary citizen who is not a the worker does not want to vote, if this of the brain in operating the industries member of·a union. I doubt that union bill were to become law we would reward, of America. workers in this country like to be "pushed counting his vote in the election, the fel Mr. PEPPER. I thank the Senator. around" any more than do people who low who stays at home. Is that encour We all have to admit that it is human are not·members of a union. But I sus aging good citizenship? Does it encour experience that, if one man has power pect that democracy in the unions of age good citizenship for Congress to step and deals with another man who has no America is just as vital, real, and effec in and reward the man who stays away power, most of the time the man who tive as is democracy in the ordinary po from· the union meeting or who refuses has power will get the better of the bar litical election in this country. Some to participate in the union election, or gain. When there is comparable power one says that a little group gets together for Congress to prescribe the standards on each side we are likely to get the kind and runs the union. That may be so. that must be observed and to lay down of bargaining and the sort of agreement But in many lodges, churches, and fra one standard for union members and an which represent a fair meeting of the ternal orders a little group gets together other standard for everyone else in the minds of the parties. and runs the organization, because the United States who belongs to a church or The purpose of organization of work membership allows them to do it. A great a lodge or a society or an organization of ers is that in dealing with the employees amount of the legislation which is passed any kind, and also for every public omce the worker may have a power compara - in the Senate is passed by unanimous holder elected in the entire structure of ble to that of the employer in dealing consent. The Chair says, "Without ob the Government of the United States? with the employees. But assuming that jection, the bill is agreed to." We do Mr. HAWKES. Mr. President, will the wo1·ker has power equal to that of the not even vote in such a case. The im the Senator yield to me for a moment? · employer-and I dispute the statemept portant thing is that we have the right Mr. PEPPER. l yield. that he now has equal power-it does not to vote; we have the right to object and Mr. HAWKES. I am sure the Senator mean that either party should abuse the say, "You cannot pass bills in that way from Florida believes there is a differ power which each possesses. · When we if we .do not agree to it." That is the ence between the way voting is done in hear people say. that the workers abrupt important thing. As a matter of fact, I labor unions and the way voting is done ly, arbitrarily, and capriciously strike, I s.uspect we would admit that a little in Congressional and Presidential elec wonder if we realize which is hurt the group of Senators runs the Senate. But tions in the United States. In other more-the striking worker or the com if we object, we have the right to vote words, the voting in Congressionaf and pany against which he strikes. It means ag~inst it, or we can follow them if we Presidential· elections is unquestionably loss of wages to the worker; it affects think theirs is wise leadership. done on the basis ·of the secret ballot,· his weekly pay check, the house rent, the In the politics of this country I have whereas the voting in labor· unions has grocery bill, the mother with children. heard-of course, it may be erroneous not always been secret, and threats have It involves ability to pay the doctor; it that in some of the parties and in some been made en the-- basis of knowledge as involves the right of the family to live. of the cities, towns, and States a little to how certain members of unions have All those things are dependent upon a group of persons get together and run voted in elections of the union leaders. man's work. On the contrary, the cor politics. I suspect that has happened. In short, the voting in unions has not poration by which he is employed can The important thing is that every now always been secret, and the union mem lose profits for a while, or can even sus and then the people become stirred up bers who participated in -such elections tain losses for a period. But which can about it and object to being "pushed did not always vote with the safety which stand it the longest time-General around" by a minority. They rebel; they I believe the American people have when Motors Corp., United States s ·teel Corp., use their power to vote to change the they vote to elect Members of the Senate or the men and women who work for administration whenever they choose to or the House of Representatives, for in those corporations? do so. But, Mr. President, there are stance. Another common fallacy, Mr. Presi many places in this country where few Mr. PEPPER. Mr. President, I am dent, is the belief that when a strike has people have a great deal of influence; not prepared to assert that the American been settled the workers are paid for the and that is not confined only to labor people feel the same solem·nity when they time they were off from work. They are unions. So we cannot single out labor elect labor union leaders that they do not. It may be years before the increase unions and, because every member does when they elect their public officials. which they receive as a result of the not vote at elections, blame them when But so far as I know, under the National strike will make up for the wages lost every citizen does not vote in every elec Labor Relations Act a secret ballot is during the time they were not at work. tion. I wish they did. They undoubt provided for, and the integrity of the I have previously mentioned on the edly should. We hope they will. But in elections is assured by the Board. The floor my discovery in Detroit last year, many elections in this country the de Board conducts the election, as a matter when the General Motors strike was in cision is made by a minority of the total of fact; and the Board is a public body. effect, when I obtained information from number of voters. But we do not declare So I do not know of any lesser degree of a doctor regarding the number of va that to be illegal. integrity relative to voting in unions, as cant beds in the hospitals in Detroit. · Yet under this bill, when there is a compared to voting for public officials. The workers when they were not work union.shop, the decision is not permitted So far as the worker is directly affect ing could not pay for hospital treatment to be made by a majority of those who ed, the votes he casts as a member of a for themselves or for their families. vote in the election and who are elected union may affect his wages more direct They could pay such expenses out of by a majority vote. They are not elected ly, for his wages may be affected more their weekly pay checks when they were by a majority of all the eligible electors. directly by obtaining a good group of at work. It literally means that the The committee recommends to the Sen union officials than by electing a good health of the family is involved. ate that, by this bill, we should require United States Senator or a good State Mr. President, I maintain that even the.election to be decided by a majority attorney general or a good judge of a now workers do not have a position of of all eligible to vote. Why do we lay circuit court. economic strength comparable to the down one standard of democracy under Mr. HAWKES. I must agree with the power of the employer. which to elect leaders of a labor union Senator from Florida that that could The able Senator from New Jersey [Mr. and another standard of democracy be the case if the union members got a HAWKES] raised the question regarding under which to elect the President of the good set of union officials; I would have union leadership and union officials. I United States of America, the governor to agr~e definitely as to that. 1947 -·· CONGRESSIONAL RECORD-SENATE 4367 But let me ·say to the Senator from pality, it is not perfect in the county, I remember that in 1938 1 was in Lon Florida that it seems to me that at the it is not perfect in the State, it is not don speaking to one of the British Cabi moment the workers are worried about perfect in the Nation. There have. been net members. He told me of the long the question of the closed shop and the instances in which men have been ·fired period during which the labor union way in which union elections are con from their political jobs because they told movement had been vital in Great Brit ducted. Anyone who believes that the the truth or tried to tell the truth. ain, and he pointed out that there .was feeling against the closed shop is con There have been instances in which men only one strike in progress in all of Great fined to those who are outside the ranks -have had contracts taken away from Britain on the issue of recognition of a of the working class is greatly mistaken, them by businessmen, simply because union. I can assure the Senator. A gentleman they tried to do the right and because Mr. President, they have out of the of whom I know recently spoke to 1,281 they advocated what they believed in. long history they have had in the labor workers, most of whom belonged to a I say that because there may have been union movement been able to develop a certain union. He spoke of the closed a case-and undoubtedly there are such maturity, a competence, and a wisdom in shop and the question of the workers be cases-in which men or women were the labor leadership which today has ing able to resign or not being able to ejected from a· union, perhaps unfairly, made the labor-union movement of resign from the union. After he spoke it is not proper for the Congress of the Great Britain the bulwark of her labor on that subject, the entire 1,281 workers United States to lay down rules govern government. rose to their feet and cheered and whis ing every election in :1 labor union and Our labor movement mushroomed in tled for a full minute. governing the conditions of every ejec the United States during the war from So, Mr. President, the resistance to the tion from a union or admission to a four or five million to twelve or fourteen closed shop and the destruction of indi union or regulating, as an ap:.,Jellate body, million. There may have been some men vidual freedom in connection with the the minute details in regaru to every chosen in that mushroom period who right to work is not confined to Senators thing that happens in a labor organiza were not worthy of the offices to which or industrial leaders or the so-called peo tion, any more than the Congress should they were elected. I will trust the mem ple in the upper brackets. I am sure that do sC'· in the case of a lodge or a church bers of those organizations to elect bet the Senator from Florida knows that to or any other kind of organization or so ter officers, if that is true. be so. He must know it. ciety in the United States: The fact I say, Mr. President, that what we need He is trying to find some way whereby that some mayor or some city council today is to strengthen the labor-union the rights which have been intended to man succeeds in having an employee movement, to better it, to make the labor be preserved by means of the closed shop fired fer bein5 honest and not helping union a wiser and abler spokesman for can be preserved in some way that is him to steal-such things occasionally the worker. But what is being sought American, I take it; and that is what I happen-d0~s not mean that the Con here today? The effort is to strangle am trying to find. ~ress should become an appellate body But surely the Senator from Florida to review every decision that is made by it, to weaken it, to turn the clock back does not support the action of the union every political executive or administrator ward. The attempt is to create distrust which fired one of its members who testi in the political structure of the United anq suspicion and disharmony in the fied to the truth when he was subpenaed States. We have to deal on the basis ranks of the organizations. Those who as a witness in a court case. I refer to e-f what is best for the greatest number, advocate the pending legislation are try the union member who saw a union shop Mr. President. We have to deal with the ing to weaken the labor-union move steward strike a foreman while in the balance of interest, with what is the best ment, and thereby impair the standards plant; and later, when the case was pre P'Jlicy, taking into consideration both of living of the workers who o.re affiliated sented in court, the employee was sub sides of the case. with the unions and ultimately to wreck penaed to testify to what he saw. He I am saying that, if we do not have our economy based on high-living stand testified that he did see the union shop strong organizations to represent the ards. steward strike the foreman of the plant. workers, the workers will general1y be Mr. President, tn view of the fact that Thereafter, that employee was dis exploited by their employers, their wages the Senator from New Jersey [Mr. charged from the union-simply because will be reduced, their living standards HAWKES] in our recent discussion re he had testified to the truth; and, in view will ~e lessened, their purchasing power ferred to some statement made some of the existence of a closed shop, a dis will be diminished, and not only will they time ago by Mr. A. F. Whitney relative to charge from the union meant that it suffer, and not only will their children certain aspects of labor legislation, I ask would be impossible for that man to ob and their communities and the organi unanimous consent to incorporate in the tain any job in that plant. He was fired zations with · which tht:.y are affiliated RECORD at Lhe end of my remarks four from the union and lost his job. suffer, but the entire Nation will suffer. amendments offered to the pending labor Mr. President, the case to which I have So, Mr. President. if we impair the legislation by Mr. A. F. Whitney, presi just referred has been stated in the rec strength of a workers' organization, we dent of the Brotherhood of Railway ord of the committee hearings; and I do a disservice to the United States and Trainmen, the last of which reads: know of similar cases. The one I have to every man, woman, and child in it, And provided further, That nothing in ·this mentioned happens to be the one which regardlP.ss of whatever economic seg act or fn any other statute of the United is set forth in the record which is now on ment he may fall into. States shall preclude a carrier, 1-ts officers, or the desks of Senators. A while ago the Senator from New agents from making an agreement with a But I am sure the Senator from Flor Jersey was referring to the corporation labor organization (not established. main ida does not believe that anyone should as being a relatively new concept in the tained, or dominated by the carrier, its offi cers, or agents) · to require membership have the power to deprive a man of the United States. Just consider, Mr. Presi therein as a condition of . employment, if right to work, simply because he told the dent, how new the labor movement in such labor organization is the duly desig truth when he was subpenaed as-a wit this country· is in its magnitude. If not nated and authorized representative of the ness in a case in court. all the leaders are perfect, if not all of employees at the time the agreement 1s Mr. PEPPER. Mr. President, the case them are possessed of the skill which made. the Senator from New Jersey has men tl;ley should have, yet, Mr. President, it tioned is, of course, .a hard case. I re may also be said that perhaps some of I respectfully suggest that Mr. Whit mind him that it is an accepted axiom in us are not perfect, and hat perhaps it ney must have changed his mind on the the law that hard cases make bad law. would have been possible to improve a subject sind~ the conversation to which The case referred to by the Senator from little on some of the men who have been the Senator from New Jersey referred. New Jersey has often been mentioned in elected to public omce in the United The PRESIDENT pro tempore. Is the debates on the measure now before States-of course, not in the case of the there objection to the request of the Sen us and in the committee. Evidently. in Senate, but perhaps elsewhere in the ator from Florida? The Chair hears that case a worker testified to what hap United States. none, and it is so ordered. pened in connection with a certain in But, Mr. President, W£ are trying to cident. Well, Mr. President, democracy learn and to do the best we can, and, Mr. PEPPER. Mr. President, I was is not perfect. It is not perfect in a by and large, the labor leaders are in the discussing the committee report, which labor union, it is not·perfect in a munici- same category. referred to the abolition of the closed 4368 CONGRESSIONAL RECORD-SENATE MAY 1 shop. I wish to say just one word fur . let the· employer and the employee put· every time the management of a corpora ther respecting the ·matter of the closed provision for it' into a contract, even if tion enters into a contract with its work shop. . they wish to do so, even if they have ers. While we require that the workers I have already distinguished the case been doing it in the past. Moreover, it vote individually upon the contract that put by the Senator from Ohio, holding permits the union shop only upon the their representatives enter into with that abolishing the closed shop was jus condition that a majority of all the eligi management, we do not require the stock tifiable as a public policy, just as outlaw ble workers vote for it, not a majority holders of the corporation to vote indi ing the "yellow-dog contract" was jus of the workers who participate in the vidually upon the contract entered by tifiable as public policy. · I pointed out election, which is the way we · elect the management with labor. There, again, that in the one case we were dealing with public officials of this country, and the Mr. President, is a discrimination against two groups which were bargaining freely way we elect the leaders of every private the worker in this proposal. each with the other. whereas in the other organization of which I have knowledge. But today the workers eleet their offi case there was organization on one side So I say, Mr. Presicent, that there, cials. · They go to bargain with man dealing with the individual on the other, again, the purpose of the bill is shown, agement. Management is the represent and making him give up the right of a to strike down right after right, power ative of capital employed in the enter citizen to affiliate with an organization · after power, and privilege after privilege prise. The two make a contract, and it if he chose to do so. of the workers of the country; and yet is binding, because they have authority; Mr. President, I said that the closed the employer is touched hardly with the they are the duly authorized agents ()f shop was a balance of interest, the in lightness of a feather. If it takes any labor and of management. Could any terest of the workers collectively in bet right away from him, I do not know what thing be fairer than that? But now, Mr. tering their wages and working condi it is. If it imposes any new duty, I have President, if this bill should become law, tions, as against the right of an individ not heard of it. labor may choose their bargaining agent, ual to come up to the gate without identi This ought to be called, Mr. Presi if they enter into a contract for a union fying himself with the organization in dent, the pending bill against the work shop with the employer, but it ts not any way, and saying, "I want a job." ers of America. Then we would be can binding until they have a second elec Mr. Presid~nt, I have· always thought did about it. Or one might prefer to say, tion; the first one being to choose the that the closed shop was a proper rela legislation against the labor unions of bargaining agent-another election, at tionship between the parties primarily the country, because, Mr. President, the which a majority of those who vote for concerned, the people working in a plant. constriction which it applies is all on one the matter shall determine it? No; a I do not know of any inherent right a side. It may be said that is necessary, ma'jority of all those eligible must vote. worker has to get a job in a particular because all that has been done in the So I say it makes it more difficult for the plant. He may or he may not get such past was on the other side. There may representatives of labor to act for labor. employment. But the thing that is com have been, and there have-been, certain The leadership of labor is weakened. monly overlooked, it seems to me, is that preferences given to workers as against There is a premium put on the fellow the- closed shop· fundamentally repre employers, but I do not believe, Mr. that stays at home and who will not par-· sents the decision of the worker ~s to President, that the present situation is ticipate in the election. So I respect the people with whom he will work. That so one-sided as to justify the Senate in fully submit, Mr. President, that in para-: simply means that a group of workers passing legislation that is one-sided, on graph 2 of the committee report there is may say, "We feel it so essential to our the other side. And that is what I hum:. another instance of the one-sided char welfare as workers that we work to bly submit this bill does, and what I acter of this legislation. gether, that we bargain together with was trying to do. was to prove that thesis Mr. McMAHON. Mr. President, will · the employer, that we make common by the committee's own report. I started the Senator yield at that point? cause in our relations with the employer, off by referring to the amendment that Mr. PEPPER. I yield. . that we will not work with people who it makes to the National Labor Relations Mr. McMAHON. Much has been said will not cooperate with us in that way." Act-the Wagner Act, the charter of the about Communist infiltration in the labor All they do is to say to the employer, worker in America. It bears the name· movement, and undoubtedly in a few "If you will not give us the privilege of of that great man, ROBERT WAGNER, who cases there has been considerable Com requiring a man who comes here and gets still sits in this body. It came from the munist activity. In two articles I have a job t.o join with us and work with us administration of Franklin D. Roosevelt. read, it is indicated that it is the Com and fight with us for our rights, we will It had the approval of Congress and of munist members who remain at a meet not work for you, because we do not the country. ing all night and all day, who wear out want-our rights to be divided between Today, under that law, foremen have the other members, who go home. I was those who will work together and the a right to organize and bargain collec wondering whether or not the provision dissident few who will not work with a tively with their employers. That is which penalizes the people who stay away majority." held by the National Labor Relations might not bring -them to a realization of Mr. President, has not a worker a Board; it is held by the Supreme Court their duty, and cause them to attend the right, first, to determine for whom he of the United States. This bill takes meetings, and to remain as long as those will work and, secondly, with whom he away that right. At the present time, who perhaps are not inclined to advance will work? I do not have to work with employers and employees can enter into the principles of good unionism, but to the man beside me if I do not want to. a closed-shop agreement: That right is advance something else. If I come to the Senate and am not sat abolished under the pending legisla Mr. PEPPER. Mr. President, it is a isfied to associate with· the other Sena tion. At the present time, workers, in good principle to have everybody eligible tors, ,I can resign. If I get a job in a choosing their bargaining agents, do so to vote in any election discharge that plant and I do not like the man who by only a majority of the votes cast in duty. It might even be justified for us works beside me, I can say to my fore the election. The pending bill requires to provide that all elections should be man, "If you don't move that man, I will a majority of the eligible voters to vote invalid unless the majority of aU eligible quit." I thought I had that right as an for their chosen bargaining agent, before voters vote. That might give us better American citizen, although it seems that it can have any efficacy. A majority government; but we have never seen fit some have vastly different concepts as to · of the eligible voters are required before to do it, in our national elections, in our what are the essential rights of a citi they can have a union shop, even. State elections, or in our local elections. zen. I thought a man was the master Mr. President, at the ·present time labor There are alway,!, the busy, industrious not only of his money, but o'f. his labor, is as-free as stockholders to abide by the few who may outlast their fellows, that but I am seeing, in the law of the land, a action of their respective agents. To may have advantages in other elections. respect for a man's money, which I con day, stockholders have an annual meet That is true probably in our .churches and strue the advocates of this measure are ing, generally. They elect their direc in our lodges and in our other organiza disposed not to attribute to a man's body, tors. Those directors have periodic tions. But, Mr. President·, that fact does to the very labor of his being. meetings, and they elect the executives not justify us, I believe, in laying down I say, Mr. Presid.ent, that what the of the corporation; then those execu one standard for the making of decisions committee has done is, first, to abolish tives run the affairs of the corporation. by labor organizations, and allowing the the closed shop, to make it illegal not to- There is not a vote among stockholders prevalence of a different st!itndard far 1947 CONGRESSIONAL RECORD-SENATE. 4369 other organizations and for other deci say that that is an invasion of the right members. I do not say that that is· bad. .sions made by the people. of a citizen to address himself in a lawful I would not object to that if it were the Mr. President, I read now paragraph 3 way to anyone wHJ_ any decent proposal. only provision in the bill or if it were of the majority report, referring to the That is a violation of civil and civic not for these bad provisions. I think, pending bill: · rights of the citizenry of this country, I however, the Board is doing a pretty It gives employers and individual em respectfully submit. good job as it is .. and obviously the pro ployees rights to invoke the processes of the Moreover, the workers are denied the posed change is going to require some Board against unions which engaged in cer right to work together to better them difference in administration, some dif tain enumerated unfair labor practices, in selves. Not only is that done, but upon ference in procedure. In fact the bill cluding secondary boycotts and jurisdictional the petition or the complaint of anyone requires the Board to adopt some differ stril{es, which may result in the Board itself affected, a. regional officer or a regional ent procedure. It abolishes the review . applying for restraining orders in certain attorney of the National Labor Relations boards which are now in existence. It cases. Board· is duty. bound by the law itself, denies to the members of the Board the Mr. President, in the first place, it has as the bill provides, to go into court and right to profit by the actions of the been pointed out previously that the obtain an injunction against an organ review boards as they have in the past, President recommended legislation ization doing the kind of thing I de and it makes every member personally against the jurisdictional strike. We scribed a moment ago. In other words, read the ·record and so on, which is pre are in accord. The minority report oy it is not made permissive for the regional liminary to the decision. Perhaps that the Senator from Utah, the Senator attorney or the regional representative is a good thing, but it is, I suspect, going from Montana, and the senior Senator of the National Labor Relations Board to delay the decisions of the Board more from Florida, specifically so stated, and to apply for the injunction-it is· made than they are delayed at the present we have stated otherwise the same thing mand~tory. He must do it. Not only time. upon the floor. But, Mr. President,. the that Mr. President, he may do it even I referred to paragraph 4, which .deals so-called secondary boycott that is without notice. Of course, the injunc with the Board. I now read paragraph dealt with in the pending bill is not all tion issued would last only, I' believe, 5 5 of the majority report: that is covered by the language of that days in case .the injunction were applied In the inter~ts of assuring complete free provision. It prohibits the primary for without notice, but the regional rep dom of choice to employees who do not wish boycott, as well as -the secondary boy resentative can go ex partt; into a court to be represented collectively as well as those cott. As a matter of fact, it forbids and secur.e an injunction for 5 days, who do·, it requires the Board to enlarge the workers cooperating with one another which may mean the cruciaf period in . rights of petition in representation cases and the endeavor which I . desc'ribe.d in de to give greater attention to the special prob for the common protection or for the lems of craftsmen and professional employees common good-the very thing that Mr. termining the final result .. in tbe determination of bargaining units. Justice Brandeis laid down as the inher Mr. President, in. ·addition to that the ent right of the worker, to ·give· aid to .bill allows the issuance of a permanent Mr. President, I do not have any objec another in a struggle for working stand- . injunction against the doing of that kind tion to professional groups associating ards in a community or in the Nati'on at of thing. It also, of course, makes that themselves together in profe.SZ:onal large. · sort of thing an urifa~r labor practice unions. Nevertheless, the pr.actical"effeet Mr. President, I have previously and gives ,the National Labor Relations of this provision, I submit, is to cause quoted the language of the proposed bill Board authority . to issue · a . cease-and labor strife. It is going to cause discord and given this illustration. Here · is a desist order, .and then the power to go 'in ·labor organizations and units which group of workers, working for. an em into a court and require the enforce does not exist today. It is going to pro- · ployer, who refuses to pay a fair wage; ment of that order. voke more work stoppages instead of less. he insists upon sweat-shop conditions Mr. President, I say that in the first It will cause more strikes instead of fewer for those people; they strike. The em place the bill strikes down the civil rights strikes. ployer gets other workers to take their of a citizen to ap.dress himself to his fel I now read paragraph 6: places-strikebreakers: he goes on with · low citiz'ens to .a common cause that is 6. It pievents the Board from continuing his btisiness, making exorbitant profits, lawful in character. In the second to accord affiliated unions special advantages because he will not pay labor a fair wage. place, it denies to workers the right of at the expense of independent labor organi Another man is taking his product, add working with other workers to protect zations, by requiring that, under identical ing more labor and more skill to it, mak their own working standards. Suppose circumstances, the Board in complaint cases ing it· more valuable; the first man is there are two plants in a community, refrain from any disparity of treatment. profiting by dealing with the second and suppose one of them observes fair Mr. President, my own interpretation man. Suppose the workers in the first labor standards and the other one does is that that is going to encourage com plant go to the workers in the second not. Do we not know that workers in pany unions, as it, for the first time, plant and say to them, "You know what both plants have a common interest in recognizes the company union. That, . this man has done to us. He won't pay the wage scale in that community? In too, Mr. President, is going to mean us a decent wage. He refuses to deal our law we have time after time provided weaker bargaining units, less effective with us. He denies us the right to or that the Government shall pay the pre labor organizations. It is going to mean ganize; yet you are taking his product vailing wage. Senators will recall the more strikes, not less. It is going to pro and making him rich by working on it. statutes. For example, in the Walsh voke labor discord in many places where Won't. you cooperate with us? Won't Healey Act we require the contractor with today there is peace be ~ ween manage you help us make him do what your the Government to pay the prevailing ment and labor. employer does for you? You have got a wage. So every worker in the community Mr. President, these are just a few of good employer; he deals fairly with you; is interested in the prevailing wage in the provisions of the bill. I shall at a he pays you a fair wage; he allows you that community. Yet if a group of later time refer to others. I simply laid to join the union; he deals collectively workers try to work with another group that as a base upon which I wanted to to hold up a decent wage level in the impose the pending amendment, namely: with you in the bargaining. Now, just community, under this bill they would be come and help us by letting your em violating the law of the land. I say It is made an unfair labor practice for ployer know, and letting our employer again, it does not say anything about the a labor organization to coerce "em know, that you won't work on his prod employer in that respect. It simply ployees in the exercise of the rights guar uct if he does not deal with us in a fair strikes out the. right of the employees to anteed·in section 7: Provided, That this way." better themselves by cooperation one subsection shall not impair the right of a If the first group of workers did that, with another and by the exercise of the labor organization to prescribe its own under the pending measure they would civil right of persuasion of their fellow rules within respect to the acquisition or be violating the law. If they went over citizens about a matter of common in- retention of membership therein." and talked to the other workers about terest. . Mr. President, what does that mean? doing that, they would be violating the Those are some of the principal pro That means that it is an unfair labor law. One could not even go into the visions of the bill, Mr. President. Of practice for a union to coerce, as the lan house of a neighbor, talk to him at his course the bill changes the structure of guage says, any employees in the enjoy fireside in the evening, and ask him to the National Labor Relations Board and ment of the rights accorded them in sec do that, without violating the law •. I authorizes the appointment of four new· tion 7 of the bill. 4370 CONGRESSIONAL RECORD-SENATE
Section 7. Mr~ President. confers cex a magna. ca:rt.a. of workma.n's liberties employee, !ndivtdually, or local represenf tain rights upon employees. It provides. no less sacred or secure than the Magna atives of employees trpm eonterrtng Witb of which management during working hours without that.--:- Carta. all llbert.ies has me.ant. loss of time. or io prohibit a carrier from fur Employees shall have the right to self so much to Anglo.:.American civilization. nishing free transportation to its employees, organizaticn, to fonn, join or assist. labor ExumiT 1 while engaged in the business of a labor organizations. · bargain collectively to APPENDJDS TO T!lsTIKONY OF A.. P. WH:rtNB'i" organization. through representative& at thefr own choos ON PI:NDmG LABo& LEGISIA'IION APPENDJX D ing, and to engage In concerted actfvitfes, for the purpose o! conectfve bargaining or PROPOSJ:D AMENDMEN'!S To temove prohibition on union secuTity other mutual afd or protection. [Suggested changes are 1n black brackets} clauses paragraph fourth of section 2 of the Railway Labor Act (ca a of title 45, u. s. In the :first place, what labor union APPENDIX A Code} should be amended. by adding the fol wishes to deny an emplo.yee the free ex To make the service& or Presidential fact lowing proviso thereto: [And provided fur ercise of those rights? finding boards available before a strike vote ther, That nothing in this act or in any other is taken, the Brotherhood urges that section statute at the United States shall preclude This question becomes of practical im 10 of the Railway Labor Act (ch. . 8 of title 4&. a carrier, its officers. or agents from making portance because the word "coerce" is U.S. Code) be amended by changing the. fust. an agreement with a labor organization (not not defined. I predict. that. if a. group· sentence thereof to read as follows: established maintained, or dominated by the of workers from a. given union talks to If a dispute between a cal'rier and its em carrier, its officers, or agents) to require mem another group of workers about joining ployees. be not adjusted under the foregoing, bership therein as a condition of employ the union. that will be held to be ooer provisions of this act, [and the duly desig ment, if such labor organization is the duly cion, or it will be charged that it is nated and authorized representatives of em designated and authorized representative of ployees involved in such dispute request the. the employees at the time the agreement is coercion. That will mean that the or made.] - be Mediation Board so to notify the President. ganization will charged with an un or if, 1n the judgment of the Mediation Board, Repeal paragraph fifth of this f?ection. fair labor practice. It will mean that the dispute threatens] substantially to in APPENDIX !: there will be a hearing before the Na terrupt interstate commerce to a degree such tional Labor Relations Board, and that as to deprive any section of the country of To resolve jurisdictional disputes before there must be final judgment upon the essential transportation service, the Media they reach the strike stage. a No formal amendment is proposed, but see question. If the complaint is found to tion Board shall notify the President, who ma:y thereupon, in his discretion, create a the suggestions on pages 12 and 13 of the be justified there- will be a. cease-and testimony. desist order. Then the case will go to board to investigate and report respecting the circuit court of appeals of the appro such dispute. Mr. PEPPER subsequently said: Mr. priate jurisdiction for enforcement of the APPENDIX B President, I ask to have incorporated in order. To eliminate excessive delay in cases pend the RECORD after the material I presented The case may also be the subject .of ing before Railroad Adjustment Board, during the course of my recent remarks amend paragraph (w) of section 3 of the from Mr. A. F. Whitney: some additional an injunction or an application by the Railway Labor Act (ch. 8 of title 45, U. S. National Labor Relations Board for an Code) by substituting the following for the material that is marked in the instru injunction. This provision puts a weap first sentence thereof: ment I send to the desk, representing on in the bands of an employer or of a [(w) In the. event any division of the Ad excerpts from Mr. Whitney's testimony dissident group in the union or among justment Board becomes 3 months or more before the Committee on Labor and Pub- the employees, to keep the union in court behind in its docket of undecided disputes it lic Welfare. · all the time, to make it spend all its shall establish regtonal boards of adjustment The ~RESIDENT pro tempore. Is money, and to prevent it from e!Iectively to act in its place and stead for such period there objection? The Chair hears none, as may be necessary to clear the Divtsion's and it is so ordered~ representing and protecting the workers docket of such disputes.] in that enterprise. EXCERPTS FROM TESTIMONY OP A. F. WHI'l'NEY • APPENDIX C The bill strikes down right after right, Responsible unions want the closed or To authorize the dues check-off when privilege after privilege, power after au union shop be<:ause it is essential if the union thorized by individual members, paragraph power of the workers of the country. is faithfully to discharge the terms of the fourth of section 2 of the Railway Labor Act . contract it signs with management. How The inevitable e:trect would be more (cb. 8 o! title 45, U. S. Code) should be can any union guarantee steady production, strikes, more discord. and less peace. amended and reenacted to read as follows~ · The inevitable effect would be lower Employees shall have the right to organize peaceful relat\t)ns, an absence of wildcat wages for the workers. and bargain collectively through repl'esenta strik.e.s, or any of the other interruptions to . The day before yesterday I cited the tlves of their own choosing. The majority sustained industrial production 1! a number . fact that, in respect to their previous of any craft or class of employees shall have o! the workers affected by the agreement are the right to determine who- shall be the not a party to it? earnings and in respect to other income Some yean:r ago the vice president of one groups, the workers of America are daily, representative of the craft or class for the purposes of this act. No carrier. its ofllcers. of the Nation•s larges-t railroads demanded monthly, and yearly receiving less wages, or agents shall deny or in any way question that the Brotherhood of Railroad Trainmen less take-home pay. That will inevita the right of its employees to join, organize. fulfill the terms of its contract 1n a number bly mean a diminished purchasing pow or assist in organizing the labor organi2ation. o! railroad yards torn by bitter quarrels be er for the people of America, because of their chOice, and it shall be unlawful !or tween workers with all their resultant inter the people are the workers of the coun any canier to interfere in any way with the ruptions in yard work. This railroad had : organization of its employees, or to use the encouraged the growth of a rival union to the try. As Governor Stassen stated, it will BRT; it had protected the growth o! the contribute, as a similar policy after the funds of the carrier in maintaining or assist ing or contributing to any labor organization. other union until it had signed up a· con last war contributed, to a depression labor representative, or other agency of col siderable number of men. My answer to the which may ruin America and perhaps lective bargaining, or in performing any work vice president was that the BRT had made, drag the world down into chaos and com therefor, or to influence or coerce employees and wauld continue to make, every effort to munism. in an effort to induce them to join or remain fulfill its contract. But how could he expect In addition, the bin is one-sided. It or not to join or remain members of any labor peace in his yards ·when he was encouraging would embitter workers and cause them organization or to deduct from the wages of his employees to join a rival union and then to feel that they were not getting a employees any dues, fees, assessments, or setting one off· against the other? square deal from their Government. It other contributions payable to labor organi I say the same thing today. How can any zation, or to collect or to assist in the collec one expect a union to discharge the obliga would contribute to a bitterness which tion of any such dues, fees, assessments, ore tions. of its contract when an employer en could not but impair the marvelous pro other contributions: Provided., That nothing courages strife and rivalry by inviting an..: ductivity which this country enjoys to in this act shall be construed to prohibit a. other union to come in and start organizing? day, and which couJd not but diminish carrier [by agJeement with a labor organiza Unions are anxious to fulfill their contracts, the unprecedented profits which busi tion, national in scope, and under individual and they usually do. But tf you really are ness in America is enjoying today. authorizations by employees, from deducting concerned with the responsible operation of As against policies of that character, from the wages of such employees who are unions, then give them security so they have members of such labor organization, dues. the chance. how much better it would be to allow fees, assessments, or Insurance premiums Many employers themselves want the the present prosperity to continue unim payable to such labor organization or sub closed shop for exactly the same reason. paired. Let the working men and women sidiary or aftllia.te thereof;] And provided. fur They have learned that improved union dis o~ America continue to enjoy the right ther, That nothing tn tb,is act shall be. con cipline. higher morale,. greater stability in to feel that they have in the Wagner Act trued to prohibit a carrier from perm1ttfng an labol'-management relations are all fruitB of 1947 ' - CO·NGRESSIONAL RECORD-SENAT-E 4371 the uni'on security agreements. Why in the mittee on Printing which succeeds to the Senate and the House versions of the name of common sense should anyone strike the jurisdiction of the old Committee bill. at a system which has proved its value? on Printing, with the req~est that some· The conference report also adopts gen · In the name of common sense, no one resolution of the Senate be suggested erally the Senate rule with respect to would. In the name of profits · for a selfish few, some industrialists do. I do not believe which will permanently prevent this future claims. they will be successful; But the very fact practice. It bans representative actions, as pro that the basis of union security is threatened EXEMPTION OF EMPLOYERS FROM LIA vided in the Senate amendment. introduces antagonism in the industrial pic· BILITY FOR PORTAL· TO· PORTAL It contains a 2-year statute of limita ture. By refusing to strike at union security, WAGES IN CERTAIN CASEs-CONFER tions, with modifications as noted in the the Congress will make a real contribution ENCE REPORT statement which I put into the RECORD to lasting industrial peace. yestercf.ay. Mr. WILEY. Mr. President, I ask It permits reliance on past and future To remove prohibition on union security unanimous consent for the present con administrative rulings. · clauses paragraph 4 of section 2 of the Rail sideration of the conference report on It permits a court in its discretion to way Labor Act (ch. 8 of title 45, U. S. Code) House bill 2157, the so-called portal-to award less than the liquidated damages should be amended by adding the following portal bBl. proviso thereto: "And provided further, That which now are mandatory under the nothing in this act or in any other statute The PRESIDENT pro tempore. Is Fair Labor Standards Act. of the United States shall preclude a carrier, there objection to the request of the Sen It relieves from liability employers its officers, or agents from making an agree ator from Wisconsin? who were exempt under an "area of pro ment with a labor organization (not estab There being no objection, the Senate duction" regulation for acts or omissions lished, maintained, or dominated by the car proceeded to consider the report. occurring prior to December 26, 1946. rier, its officers, or agents) to require mem Mr. DONNELL. I suggest the absence Mr. President, it should be clearly un bership therein as a condition of employ of a quorum. ment, if such labor organization is the duly derstood that the conference report in no designated and authorized representative of The PRESIDENT pro tempore. Does way repeals the minimum-wage require the employees at the time the agreement is the Senator from Wisconsin yield for ments and the overtime compensation made." that purpose? requirements of· the Fa~r Labor Stand- Repeal paragraph 5 of this section. Mr.' WILEY: I yield for that purpose. ards Act. · · , The PRESIDENT pro tempore. The In relation to past claims, if the action PRINTING IN THE RECORD OF SPEECHES clerk will call the roll. NOT ACTUALLY DELIVERED ON THE is brought with 120 days after the date FLOOR OF THE f?ENA TE The Chief Clerk called the roll, and the of enactment, the.applicable State stat following Senators apswered to their ute of limitations will apply. If the ac The PRESIDENT pro tempore. With names: tion is not brought within 120 days, then the indulgence of the Senate, the Chair Aiken Hatch O'Conor the 2-year statute of limitations applies, would like to refer to a question which Baldwin Hawkes O'Daniel or the shorter State statute, if it is short has been brought to his attention, Ball Hayden O'Mahoney Barkley Hickenlooper Overton er than 2 years. namely, a recurrence of the habit of Sen Brewster Hlll Pepper With respect to future claims, a 2-year ators asking to have speeches printed in Brlcker Hoey Reed over-all Federal statute of limitations full in the body Of the CONGRESSIONAL Bridges Holland Revercomb Buck Ives Robertson, Va will be applicable, thus doing away with RECORD as though they had been delivered Bushfield Jenner Robertson, Wyo. the applicability of any State statute in .on the floor of the Senate. Butler Johnson, Colo. Russell the future. · The Chair prefers to speak of this mat Byrd Johnston, S. c. Saltonstall Cain Kern Smith Mr. President, that is all I have to say ter at a time when no such request is Capehart Kilgore Sparkman in regard to the conference report, ex pending, so that it may refer to no par Capper Know! and Stewart cept to compliment the conferees, who ticular Senator. Chavez Langer · Taft Connally Lodge Taylor worked like yeomen, night and day, un At least five times within the past 2 Cooper Lucas Thomas, Okla. til finally their minds met and agreement weeks speeches have -been printed in full Cordon McCarran Thomas, Utah was reached on what I consider to be a in the body of the RECORD precisely as Donnell McCarthy Thye Downey McClellan Tydings constructive piece of legislation, which though they had been delivered on the Dworshak McFarland Umstead will result in advancing the economic floor of the Senate. As Senator McNary Eastland McGrath Vandenberg health of this Nation. said on October 1, 1942, when a similar Ecton McKellar Watkins Mr. President, I move the adoption of Ellender McMahon Wherry question arose: Ferguson Magnuson Wiley the report. It has been the unbroken practice of the Flanders Malone Williams Mr. McGRATH. Mr. President, at this Senate for 150 years that no speeches shall Fulbright Millikin Wilson time I should like to make a _brief state George Moore Young be included in the RECORD of the day's pro Green Murray ment to the Senate, as one of the con- ceedings which have not been actually de Gurney Myers ferees. · livered on the floor. The PRESIDENT pro tempore. Of course, I desire to concur in the While former Senator La Follette, of Eighty-eight Senators having answered statement which has been made by the Wisconsin, was a Member of this body he distinguished chairman of the Judiciary to their names, a quorum is present. Committee, namely, that the members constantly rose to object to the exercise The question is on agreeing to the con of the privilege of printing speeches in of the conference committee worked ference report. most diligently on the two measures the body of the RECORD as though they Mr. WILEY. Mr. President, I shall had been delivered on the floor. Upon which were before them. I was priv detain the Senate only a few minutes in ileged to be one of those conferees. I one occasion he called attention to the regard to this matter. fact that this exceeds even the privilege regret that in the final analysis, I could I preface my remarks by stating for not bring myself to sign the conference to print which is exercised in the House the information of the Senate that the report. I may say that the defects of of Representatives, because while the conference report which we now have the conference report of which I com House does permit Members to extend under consideration was printed in the plain are no different than those of their remarks, it requires that they be RECORD for April 29, where it appears on which some of us complained when the extended in the Appendix of the RECORD. pages 4209 to 4211, inclusive. bill was before the Senate for general In the opinion of the Chair, it is very At this time I wish to present a brief discussion prior to its passage. important to protect the integrity of the · summation of what has been accom I reiterate that I think it is a grave REcORD of the proceedings of the Senate. plished by the conference committee as mistake for the Congress of the United It is not fair to ask the Official Reporters embodied in the report. States to write into the provisions of this · of Debates to stand guard in this con Mr. President, the conference com measure limitations upon labor laws nection and to resist requests to violate mittee adopted in its report the provis which heretofore have worked admirably this essentially sound precedent. ions of both the House and Senate ver for the welfare of those in whose behalf The Chair takes the liberty of asking sions of House bill 2157, in substance, they were enacted. that these observations be referred to with respect to past claims. In other Inasmuch as both the House and Sen the Committee on Rules and Administra words, the conference report in relation ate versions of the portal-to-portal bill tion, under which there is a Subcozn.. to past claims, adopts the theory of both incorporated the Walsh-Healey Act and 4372 CONGRESSIONAL RECORD-SENATE the Bacon-Davis Act, there w:as the be the United States, regardless of whether It is very difficult, of course, io decide a lief on the part of the conferees that they or not such agency had anything to do particular lawsuit upon the fioor of the laeked authority to eliminate them from with the enforcement of the Fair Labor Senate, and I would not undertake to say the -conference report. With that inter Standards Act. Reliance upon that with certainty the outcome of that case. pretation of the authority of the con sort of a custom or practice is sufficient on the facts submitted by th~ distin ference committee, I do not agree. I · to justify a violation of the Fair Labor guished Senator from Milinesota. I will think it was within the province of the· Standards Act by an employer who can state that unless the employer pleads conference committee to recommend to come forward and point to some mythi and proves that the act or omission com the Senate that inasmuch as no portal cal letter or some mythical custom upon plained of was in good faith. and in con to-portal cases had been brought under which probably he relied. I think there formity with and in reliance on an ad those acts, there was no necessity,· so far is danger in that sort of looseness in the ministrative regulation, order, ruling, as the proposed legislation was con legislation we are writing. · · approval, or interpretation of an agency cerned, to incorporate them in this final Mr. President, I do not care to pro of the United States, or an administra draft. , long the debate. As I said in the be tive practice or enforcement policy of Mr. President, I regret that the im gjnn1ng, these arguments have already any such agency with respect to the class pression has gone abroad to the coun been made, but I did want to reiterate of employers to which he belonged, he try that those of us who are sincerely them upon the floor of the Senate, in is not protected. . in opposition to the enactment of this order that Senators might know that the In the case which the Senator cites. legislation in its present form do not errors and the fallacies are still pres in which there were confiicting rulings, desire to see the injustices and the in ent, and there is grave danger that we one department ruling one way. another equities of portal-to-portal suits cor have done mortal harm to the Fair Labor ruling the other way, I think it is im rected. I, for one, would be most happy Standards Act, the Walsh-Healey Act, possible to state with absolute certainty to vote for a measure which would ban and the Bacon-Davis Act. and that to as to whether a court would hold that portal-to-portal suits, without any limi day, by the adoption of this conference the employer was relying in good faith tation or exception whatsoever. But I report, we take a terrible backward step upon the one ruling or the other. I think wish to call the attention of the Senate in the field of labor legislation. that is a matter which might well re and of the country to the fact that this The PRESIDENT pro .tempore. The quire the determination of a court. I measure goes far beyond the field of question is Qn agreeing to the conference think that is as near an answer as I portal-to-portal legislation. To those report. can give the distinguished Senator, on who speak of the relief it will bring to The report was agreed to. the facts. industry by banning some $5,000,000,000 Mr. DONNELL. Mr. President, I Mr. BALL. I thank the Senator, and or $6,000,000,000 worth of claims, I de move that the vote by which the confer I am inclined to agree with him that it sire to point out that the measure now ence report was agreed to be reconsid is up to the court to decide finally. But before the Senate, to my way of· think ered. it would appear to me that when the em ing, merely extends to industry an in Mr. COOPER. I move to lay that mo- ployer, in the particular case cited, went vitation to pass its own financial obliga tion on the table. . to the length of getting the War De tions on to the Government of the United The PRESIDENT pro tempore. The partment, under which he was a con States, for the conference report pro question is on the motion of the Sena tractor, ·to indemnify him in case his re vides that where any issue whatsoever tor. from Kentuc}.{y to lay on the table liance did not prove very good, it did not remains to a portal-to-portal suit, any the motiQn of the Senator from Missouri indicate that he had very much faith ln issue whatsoever between the parties that the vote by which the conference the ruling on which he was relying. report was agreed to be reconsidered. and I cannot conceive but that in every Mr. DONNELL. I will say, Mr. Presi one of the suits which we are attempting The motion to lay Qn the table was agreed to. dent, if the Senator will yield, that re to outlaw there will remain some ques liance in good faith is an essential part tion as to whether there was a contract. Mr. BALL subsequently said: Mr. of the defense, and unless the employer whether there was a custom, or whether President, I should like tQ ask the Sena tor from Missouri very briefly about the can show a good-faith reliance in con there was a practice-if such question formity with and in reliance on the ad remains in the minds of the parties, the conference report adopted a few mo ments ago. ministrative regulation, and so forth, he suits are not outlawed, and may be com is not protected. Does that answer the promised and settled. I am concerned with the good-faith defense provisions of the conference re senator? This means that any ~mployer can port. I know of one particular case, for Mr. BALL. Yes; I think that answers buy the good will of his employees at the what I had in minTheodore Roosevelt. into the arid lands of the West, which paid by the water users from their land Apparently the majority party members were not even irrigated in those days. and to that it would add the revenue got their Roosevelts mixed up. They For many years we have recognized from all of the power projects of the Co thought that reclamation, power devel that because our ancestors treated the lumbia Basin. Thus those big power opment, preservation of natural re Indians so badly we should try to make dams in Hell's Canyon on the Snake, sources, and so on, were initiated by amends. Now the House committee the big navigation dams projected on Franklin D. Roosevelt. Of course, we all changes all that, and even refuses to pro the Snake be1(}W Lewiston, and the big know what the leaders of the majority vide Indian boys and girls with ordinary dams on the Columbia River itself would party in Congress think of his program. education, which is supposed to be avail all generate power whose revenues would They have forgotten that these sound able to all in this great Nation of ours. assist in paying for irrigation projects. policies were given their first big impetus The committee says that it is the obliga That solution evidently does not meet under President Teddy Roosevelt. I tion of our western States where the with the approval of the majority party would wager that he would not recognize Indians were pushed in the early days members who framed this Interior De his party if he saw it today. Yes; we .to take care of them. The people in partment appropriations report and who have turned back ·the clock to before the the Eastern and Middle Western States passed this bill in the House of Repre days of Teddy Roosevelt. from which those Indians were ousted sentatives. They are so interested in The over-all cut in appropriations for are supposed now in no way to share the preserving the private domain of the the Interior Department as passed by the obligation through payment of Federal private power companies in the West House was about 47 percent under what taxation. that they will allow the irrigation farm tlle President recommended. We of the West, of sparsely populated ers to go broke before they will see any This was done in the name of economy, States such as Idaho, Nevada, New Mex- additional development of public power. of course. . leo, and Arizona-States whose citizens That is their decision. Then let the But the members of the majority party are taxed to the limit of their capacity recorq be clear. Let the people know of who initiated these cuts consistently re to pay in order to support present school this action. And let the people express fused funds for what they admitted were facilities-are asked, in addition, to·ed themselves on whether they favor such essential functions. They admitted that ucate the Indians who are, by all rights, policies in 1948. Let them be heard on the Go:vernment was obligated to per wards of the Federal Government, of whether that is what they voted for in form these functions. They admitted all the people of the United States. It 1946. that a great many of them paid back is a unique theory, and it is one to which · Some eastern and midwestern Mem dollar for dollar to the United States I object strenuously both as an Idahoan bers of Congress have had much to say Treasury. and as an American. about Federal subsidies for the West. Let us take another look at the report The Republican majority in the com They feel that reclamation and publtc of the House Appropriations Commit mittee has displayed the same kind of power projects in the West represent an tee. reasoning as it went through, item by imposition on the people of the Midwest Time after time as funds were refused item, the functions of the Interior De and East. They profess to think it is the committee said either that these partment in the West. some kind of a pork-barrel grab. functions should be performed by local It cut out the statistical studies made I should like to call the attention of taxing units-States, counties, or cities to r-ive consumers and the public basic these Members to an interesting bit of or they should be performed by private information on the coal mining industry. information. It is a Government com enterprise. It said the mine owners could provide pilation of all of the money spent by the The Indian Service is an example. that information. Government on water conservation and The appropriation was cut about $11,- It cut out funds for stream gaging by control projects from 1824 to 1944. It 000,000-from forty-four million to the Geological Survey. Of course such shows that in the 17 western irrigation thirty-three million. Much of this work is absolutely essential for the opera States only about $851,000,000 of non money was for education of Indians. Let tion of an irrigation dam or a flood-con repayable Federal money has been spent. me read what the committee had to say trol dam. But out went the funds, and But in the rest of the United States about education: consternation will reign if the bill goes $3,300,000,000 of nonrepayable public Much assistance could and should be given through in that fashion. works funds have been spent for harbors, to the Federal Government by the States The Federal Fish and Wildlife Service navigation, flood control, and the like. and municipalities. In denying all proposed puts out market reports for the fishing I am not complaining about those ex increases and effecting o. substantial reduc industry much as the Agriculture De penditures. I am simply drawing a tion, this situation has been taken into con partment does for the livestock, potato comparison, because it is most favorable sideration. and grain industries. The money for to the West. In the case of repayable The committee, after cutting funds that fish-market reporting is cut out. Federal money, true, $919,000,000 have and telling the States that they must Who cares. Give the big' speculators a been spent in the 17 irrigation States of take over the job, has the audacity to boost. Gouge the little mim by refusing the West. But that money will be re- recommend that the Government live up to give him reliable information on where 4376 CONGRESSIONAL RECORD-SENATE MAY 1 he should sell his produce. Perhaps that will not provide even as much money as LABOR RELATIONS is a taste of what will happen to the the Parl: Service has been getting to take The Senate resumed the consideration United States Department of Agricul care of those huge crowds, police the of the bill the Senate Mr. LUCAS. In partial reply to the ity leader found it necessary to make the took a recess until tomorrow, Friday, May comment made by the Senator from comment which he did make. 2, 1947, at 11 o'clock a.m. Idaho [Mr. DwoRSHAK], giving some If, on the other hand, I am not in what of a lecture to Members of the order when I suggest the advisability of NOMINATION Senate as to why they should be pres holding sessions so that the Senate may Executive nomination received by the ent, I should like to say that, so far as dispose of pending matters with reason Senate May 1 (legislative day of April the Senator from Dlinois is concerned, able diligence, then I have no other com he has been busily engaged in listening 21), 1947: _ment to make. Probably I shall learn a UNTrED STATES ATTORNEY to the expert testimony on the tax bill little more about the operations and known as House bill 1, which now is the procedures of this body as time goes on; Owen Mcintosh Burns, of Pennsylvania, to subject of hearings by the Finance Com be United States attorney for the western but I am cognizant of the fact that many district of Pennsylvania, vice Charles F. Uhl, mittee. Obviously it is impossible for a citizens of this Nation expect some forth term expired. Senator to be in two places at the same right and vigorous action to be taken by time. I dare say that if the Senator this body and by the other branch of the from Idaho is interested in a reclamation Congress, and I am objecting to conduct project in the West and is a member of which may be regarded as justification HOUSE OF REPRESENTATIVES a committee dealing with it, and if the for many of the complaints which have matter is of considerable importance, he been made of us in the newspapers and THURSDAY, MAY 1, 1947 will not be on the fioor of the Senate all in radio broadcasts which constantly are the time, but he will be trying to protect critical of this body because we do not The House met at 12 o'clock noon. the interests of his section of the coun continue in session and take the action The Chaplain, Rev. James Shera try, as it is his bounden duty to do. which the country is demanding of us. Montgomery, D. D., offered the following I do not feel that the criticism which Mr. LUCAS. Mr. President, I do not prayer: has been made is really just. It is rather wish to labor this question and I was not Our Heavenly Father, whose being is difficult to keel> Sens.tors on the fioor of attempting to be critical of the Senator the Senate all the time. without beginning and without ending, · from Idaho. If be wishes to criticize any and whose mercy is from everlasting to So far as I am concerned, the quorum group of Senators, he should criticize the call can go on; and if the Senator makes everlasting, whatever the needs of this majority, not the minority, because the day may be, impart to us Thy gracious another· speech on that matter, I shall majority has complete control of what suggest the absence of a quorum. spirit. Inspire us with the loftiest con Is done in the Senate. ceptions of truth and right, that by faith Mr. DWORSHAK. Mr. Pr~sident, I Every so often we receive verbal and courage we may hasten the domin certainly did not intend to deliver a lec spankings by some new Member of the ture to the Members of this distinguished ion of Thy kingdom of peace and happi body. I recognize that much important Senate. That is perfectly all right, and ness and brotherly love toward·all men. work is transacted in the various com I think perhaps they do some good. Kindle the fiames of devotion upon the mittees, and I have no desire to be criti- However, if a Republican Senator is go altars of our hearts, so that in our hopes . cal of the acting minority leader or any ing to lecture or criticize any Senator for and aspirations we shall more and more other Member of the Senate. not being on the floor of the Senate, he . reach out toward Thee. I wish to assure my colleague from n should direct his remarks at the Mem Grant Thy blessing upon our distin linois that I, too, am a member of an im bers of his own party. guished guest, as his visitation to our portant committee of this body; and if We on the Democratic side of the aisle country symbolizes the harmony and he will check the records, he will find will try to help muster a majority on a understanding between ow· peoples. We that the Appropriations Committee and quorum call any time a Senator wishes pray that time may intensify and seal the 12 subcommittees thereof hold daily to suggest the absence of a quorum. If the spirit of unity, and that our common hearings throughout the entire session, the Senator wishes to have a quorum call interests may be evidenced by mutual and that the members of the Appropria at this time, that will be perfectly satis cooperation and respect. tions Committee are required to dis factory to me, and I shall try to round In the name of the world's Saviour. charge their duties the same as Senators up as many Democratic Senators as I Amen. who are members of committees which can. The Journal of the proceedings of yes meet infrequently. I certainly had no MESSAGE FROM THE HOUSE-ENROLLED terday was read and. approved. intention of lecturing the Members of BILL SIGNED this body. RECESS But, Mr. President, I reiterate that we A message from the House of Repre The SPEAKER. The Chair declares have beard much about the necessity of sentatives, by Mr. Swanson, one of its the House in recess subject to the call having the Senate and the House trans reading clerks, announced that the of .the Chair. act business during the present critical Speaker had affixed his signature to the Accordingly