the locality in which the supplies are to be manufactured or furnished under said contract, including the reasonable costs, as determined in accordance with administrative regulations, to the employer for furnishing such employee with board, lodging, or other facilities, if such board, lodging, or other facilities are customarily furnished by such employer to his employees; (c) that no person employed by the contractor or subcontractor in the performance of the contract or subcontract for supplies shall be permitted to work in excess of eight hours in any one day or in excess of forty hours in any one week; (d) that no person under sixteen years of age and no convict labor will be employed by the contracor or subcontractor in the performance of the contract or subcontract for supplies, and that no person under eighteen years of age will be employed in any occupation or industry which the Secretary of Labor has determined to be hazardous or injurious to the health of such persons; (e) that no part of the contract or subcontract for supplies will be performed in any plants, factories, buildings, or surroundings, or under working conditions which are insanitary or hazardous or dangerous to the health or safety of the employees engaged in the performance thereof. Compliance with the safety, sanitary, and factory-inspection laws of the State in which the work, or part thereof, is to be performed shall be prima facie evidence of compliance with this subsection; (f) that the contractor and subcontractor will comply with all the terms and conditions of this Act, including any and all rules and regulations in force and effect."

Section 2 is amended by striking out the entire section and substituting in lieu thereof the following:

"SEC. 2. That any breach or violation of any of the representations and stipulations in any contract for the purposes set forth in section 1 hereof shall render the party responsible therefor liable to the United States of America for liquidated damages, in addition to damages for any other breach of such contract, the sum of $10 per day for each person under sixteen years of age or each convict laborer employed in the performance of such contract, and a sum equal to the amount of any underpayment of wages due to any employee engaged in the performance of such contract, and for the second breach or violation double such amount due any employee, and for the subsequent breach or violation treble such amount; and, in addition, the agency of the United States entering into such contract shall have the right to cancel the same and to make open-market purchases or enter into other contracts for the completion of the original contract, charging any additional cost to the original contractor. Any sums of money due to the United States of America by reason of any violation of any of the representations and stipulations of said contract set forth in section 1 hereof may be withheld from any amounts due on any contracts or may be recovered in suits brought in the name of the United States of America by the Attorney General thereof. All sums withheld or recovered for underpayment of wages, including such double or treble damages as may be found due, shall be held in a special deposit account and shall be paid, on order of the Secretary of Labor, directly to the employees who have been paid less than minimum rates of pay as set forth in such contracts and on whose account such sums were withheld or recovered: Provided, That no claims by employees for such payments shall be entertained unless made within one year from the date of actual notice to the contractor of the withholding or recovery of such sums by the United States of America."

Section 7 is hereby amended by striking out the entire section and substituting in lieu thereof the following:

"SEC. 7. The words defined in this section, unless otherwise indicated, shall have the following meaning when used in this Act, to wit: (a) 'Person' shall include one or more individuals, copartnerships, associations, corporations, trustees, legal representatives, trustees in bankruptcy, or receivers. (b) 'Supplies' shall be deemed to include materials, articles, vessels, equipment (including floating equipment), and services of any form, excepting professional, which are required to be furnished under the contract or subcontract. (c) 'Subcontractor' shall mean any person who manufactures or furnishes to or for the principal contractor, whether directly or through any middleman or broker, all or any part of the supplies which are required to be manufactured or furnished by the principal contractor pursuant to the Government contract: Provided, however, That the provisions of this Act shall apply only to such subcontractors whose contracts exceed a total of $2,000." Section 11 is hereby amended by the addition of the following: ": And provided further, That this Act as amended shall apply to contracts entered into pursuant to invitations for bids issued on or after ninety days from the effective date hereof."

[S. 1032, 76th Cong., 1st sess.]

AMENDMENT Intended to be proposed by Mr. WILEY to the bill (S. 1032) to amend the Act entitled "An Act to provide conditions for the purchase of supplies and the making of contracts by the United States," and for other purposes, viz:

On page 5, after line 24, insert the following:

"SEC. 8. Section 9 is amended by striking out the words 'nor shall this Act apply to perishables, including dairy, livestock, and nursery products' and inserting in lieu thereof the words 'nor shall this Act apply to dairy products, nor to perishables, including livestock and nursery products'.”

Senator WALSH. The reporter will please insert the bill of last year, a copy of that bill, and also the report made by the Committee on Education and Labor to the Senate with reference to the bill of last year.

(S. 2165, the bill of last year, and the report on it, are as follows:)

[S. 2165, 75th Cong., 3d sess., Rep. No. 1810]

[Omit the part in black brackets and insert the part printed in italic]

A BILL To amend the Act entitled "An Act to provide conditions for the purchase of supplies and the making of contracts by the United States, and for other purposes."

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, [That the act of June 30, 1936 (49 Stat. 2036), entitled "An Act to provide conditions for the purchase of supplies and the making of contracts by the United States, and for other purposes," is hereby amended by striking out all of section 1 after the enacting clause as far as subsection (d) and inserting the following in lieu thereof:

["That in any contract (except contracts for amounts less than $2,500) made and entered into by any executive department, independent establishment, or other agency or instrumentality of the United States, or by the District of Columbia, or by any corporation all the stock of which is beneficially owned by the United States (all the foregoing being hereinafter designated as agencies of the United States) for supplies or services, there shall be included the following representations and stipulations:

["(a) That the contractor is the manufacturer of the supplies, or a regular dealer in the supplies or services required under the contract;

["(b) That all persons employed by the contractor in the performance of the contract will be paid, without subsequent deduction or rebate on any account, not less than such minimum fair wage as may have been determined in the manner hereinafter defined;

["(c) That no person employed by the contractor in the performance of the contract shall be permitted to work in excess of eight hours in any one day or in excess of forty hours in any one week."

[Section 1 (d) is amended by inserting after the word "contractor" the clause "and no person shall be permitted by the contractor to perform industrial home work."

[SEC. 2. Section 2 of the said Act is amended by inserting the letter "(a)" before the first sentence thereof and by the addition thereto of the following subsections:

["(b) Where the contractor is a regular dealer, he shall submit with his bid a certificate executed by the person who manufactures and from whom the contractor secures all or any part of the supplies specifically required under the contract, which certificate shall contain the same representations and stipulations required of a manufacturer contracting directly with the Government;

["(c) Any breach or violation of any of the representations and stipulations contained in such certificates as are required under subsection (b) of this section shall subject the party responsible therefor to the provisions of subsection (a) of this section."

[SEC. 3. Section 3 is amended by striking out the period at the end of the second sentence, inserting a colon in lieu thereof, and by the addition of the following: "Provided, however, That such list shall contain the names of persons who are refusing to comply with directions or orders of the National Labor Relations Board issued pursuant to sections 9 and 10 of the National Labor Relations Act".

[SEC. 4. Section 5 is amended as follows: In the twenty-third line of said section insert after the word "and" the words "the Secretary of Labor"

[SEC. 5. Section 6 is amended by striking out the period at the end of the final sentence, inserting a colon in lieu thereof, and by the addition of the following: "Provided, however, That no such overtime rate shall be required for hours in excess of eight in any one day if such day occurs within a week in which the aggregate number of hours does not exceed forty".

[SEC. 6. Section 7 is amended to read as follows:

["SEC. 7. Whenever used in this Act

[“(a) The word 'person' includes one or more individuals, partnerships, associations, corporations, trustees, legal representatives, trustees in bankruptcy, or receivers;

["(b) The word 'employed' shall mean manually engaged in the manufacture or preparation for shipment of the supplies required under the contract or in the furnishing of services to the Government;

["(c) The word 'supplies' shall also include articles, materials, equipment; (d) The words the minimum fair wage shall mean the minimum wage in an industry which has been determined by the Secretary of Labor after notice and hearing to be the prevailing rate of wages paid to the majority of persons employed in the industry at the minimum classification: Provided, however, That where no single rate is paid to such a majority, the average rate shall be taken as the prevailing rate: And provided further, That a special rate may be determined for learners, apprentices, and handicapped workers in industry where such persons are employed if the Secretary of Labor finds that the payment of such a special rate is the custom of the particular industry and that such a determination is in the public interest;

["(e) The word 'manufacturer' shall mean a person who owns, operates, or maintains a factory or establishment which produces supplies of the general character described in the specifications and required under the contract;

["(f) The words 'regular dealer' when used in reference to a supply contract shall mean a person who owns, operates, or maintains a store, a warehouse, or other establishment in which the materials, supplies, articles, or equipment of the general character described in the specifications and required under the contract are bought, kept in stock, and sold to the public in the usual course of business;

["(g) 'Industrial home work' means any work in a home on materials or articles for an employer, contractor, or subcontractor;

["(h) 'Home' means any room, house, apartment, or other premise, whichever is most extensive, used as a place of dwelling, including outbuildings on such premises;

["(i) 'Home worker' means any person engaged in manufacturing in a home materials or articles for an employer, contractor, or subcontractor." [SEC. 7. Section 9 is amended to read as follows:

["SEC. 9. This Act shall not apply to (a) contracts where the contracting officer is authorized by statute or otherwise to purchase in the open market without advertising for proposals;

["(b) Contracts for dairy, meat, and nursery products, and perishable foods; ["(c) Contracts for agricultural or farm products, including such products of this character as are processed for first sale by the original producer, or purchased by the Secretary of Agriculture;

["(d) Contracts with a common carrier for carriage of freight or personnel by vessel, airplane, bus, truck, express, or railway line, where published tariff rates are in effect.

["(e) Contracts for the furnishing of services by radio, telephone, telegraph, or cable companies, subject to the Federal Communications Act of 1934; ["(f) Contracts for public-utility services, including electric light and power, water, steam, and gas."

[SEC. 8. The Act is amended by the addition of the following section:

"SEC. 12. Whenever the President finds that a national emergency exists, he is authorized to suspend the application of this Act to such contracts as he deems necessary."

[SEC. 9. This Act shall apply to contracts entered into pursuant to invitations for bids issued on or after thirty days from the effective date hereof.]

That the Act of June 30, 1936 (49 Stat. 2036), entitled "An Act to provide conditions for the purchase of supplies and the making of contracts by the United States, and for other purposes", is hereby amended by striking out after the enacting clause sections 1, 2, and 3, and inserting in lieu thereof the following:

"SECTION 1. The words defined in this section, unless otherwise indicated, shall have the following meaning when used in this Act, to wit:

"(a) Person' shall include one or more individuals, copartnerships, associations, corporations, trustees, legal representatives, trustees in bankruptcy, or receivers.

(b) 'Supplies' shall be deemed to include materials, articles, vessels, equipment (including floating equipment), and services of any form, excepting professional, which are required to be furnished under the contract or subcontract.

"(c) Subcontractor' shall mean any person who manufactures for or furnishes to, the principal contractor, whether directly or through any middleman or broker, all or any part of the supplies of any kind whatsoever required by such principal contractor for the performance of the Government contract: Provided, however, That the provisions of this Act shall apply only to such subcontractors whose contracts equal or exceed a total of $500.

"(d) 'Minimum wages' shall mean wages which the Secretary of Labor, upon notice and hearing, has determined to be the fair and reasonable prevailing minimum wages for persons employed on similar work or in the particular or similar industries or groups of industries currently operating in the locality in which the supplies are to be manufactured or furnished.

"SEC. 2. That in any contract made and entered into by any executive department, independent establishment, or other agency or instrumentality of the United States, or by the District of Columbia, or by any corporation all the stock of which is beneficially owned by the United States, for the manufacture or furnishing of supplies in an amount of $2,000 or more, there shall be included the following representations and stipulations:

"(a) That the contractor is the manufacturer of or a regular dealer in the supplies to be manufactured or used in the performance of the contract;

"(b) That all persons employed in the performance of the contract or subcontract will be paid, without subsequent deduction, except by collective bargaining agreement, or rebate on any account, not less than the minimum wages as shall have been determined by the Secretary of Labor, and all other wages, including wages in excess of the established minimum, which may become legally due the employee;

"(c) That no person employed by the contractor or subcontractor in the performance of the contract or subcontract for supplies will be permitted to work in excess of eight hours in any one day, except in accordance with the terms of an agreement entered into through collective bargaining between such contractor or subcontractor and a majority of his employees working on the government contract, or be permitted in any case, including the above exception, to work in excess of forty hours in any one week:

"(d) That no person under sixteen years of age and no convict labor will be employed by the contractor or subcontractor in the performance of the contract or subcontract for supplies, and that no person under eighteen years of age will be employed in any occupation or industry which the Secretary of Labor has determined to be hazardous or injurious to the health of such persons.

"(e) That no part of the contract or subcontract for supplies will be performed in any plants, factories, buildings, or surroundings, or under working conditions which are insanitary or hazardous or dangerous to the health or safety of the employees engaged in the performance thereof. Compliance with the safety, sanitary, and factory-inspection laws of the State in which the work, or part thereof, is to be performed shall be prima facie evidence of compliance with this subsection;

"(f) That the contractor will comply with all the terms and conditions of this Act, including any and all rules and regulations in force and effect; and

"(g) That the contractor will furnish at such time as may be required by the Secretary a certificate issued by each subcontractor containing the representations and stipulations provided for in subsections (b), (c), (d), and (e) of section 2 hereof, and stipulating further that he will comply with, and be bound by, all the terms and conditions of this Act, including any and all rules and regulations in force and effect: Provided, That the principal contractor agrees to be also liable to the United States for any breach on the part of the subcontractor of the representations or stipulations provided for in the certificate: Provided further, That such principal contractor shall have a cause of action against the subcontractor for any amount collected or recovered upon such liability.

"SEC. 3. (a) For any violation of the terms or conditions of this Act or any rule or regulation issued by the Secretary pursuant to this Act, or for breach of any of the representations or stipulations set forth in section 2 hereof, or for breach of any of the representations and stipulations provided for in the certificate, the contractor, and also any subcontractor responsible therefor, shall be liable to the United States of America for liquidated damages in the sum of $10 per day for each minor or convict laborer employed in violation of this Act; and, in the event employees have received

less than the wages due them under the terms of this Act or less than the overtime rate of pay as established by the Secretary, the United States of America shall have the right to recover for the benefit of the employees the sum such employees would have received had the contractor or subcontractor complied with the representations and stipulations, and for a second offense double such amount, and for any subsequent offense treble such amount: Provided, That such damages shall be in addition to any other damages due the United States for any other breach of the principal contract by the contractor; and in addition, the agency of the United States entering into the contract shall have the right to cancel it and to make open-market purchases or enter into other contracts for the completion of the original contract, charging any additional cost to the original contractor. Any sums of money due the United States by reason of any breach of the representations or stipulations shall be withheld upon the recommendation of the administrative officer, hereinafter provided for, from any amounts due on any contract or subcontract or may be recovered in suits brought in the name of the United States of America by the Attorney General. All sums withheld, collected, or recovered under the provisions of this Act, shall be placed in a special deposit account, and the Secretary of the Treasury of the United States is hereby authorized and directed, upon order of the Secretary of Labor, to pay directly to the employees all amounts found due hereunder for breach of the wage and child-labor stipulations of the contract or subcontract, including such double or treble damages as may be found due, and to make refunds: Provided, That no claim by employees for such payments shall be entertained unless made within one year from the date of actual notice to the contractor of the withholding, or the collection or recovery of such sums by the United States of America.

"(b) The Procurement Division of the Treasury Department is authorized and directed to distribute a list to all agencies of the United States containing the names of persons found by the Secretary of Labor to have violated any of the terms or conditions of this Act or breached any of the representations or stipulations: Provided further, That such list shall contain the names of all persons in disobedience of any order that has been or may be directed to them by the National Labor Relations Board pursuant to section 10 (c) of the National Labor Relations Act. Unless the Secretary of Labor otherwise recommends, no contracts shall be awarded to such persons or to any firm, corporation, partnership, or association in which such persons have a controlling interest until three years have elapsed from the date such persons were placed upon such list."

Section 5 is hereby amended to read as follows:

"(a) Upon his own motion or on application of any person affected by any ruling of any agency of the United States in relation to any proposal or contract involving any of the provisions of this Act, and on complaint of a breach of any of the representations or stipulations, or violation of any of the provisions of this Act, the Secretary of Labor or the administrative officer, or an impartial representative designated by either of them, shall have the power to hold hearings and to issue orders requiring the attendance and testimony of witnesses and the production of evidence under oath including the taking of depositions. Witnesses shall be paid the same fees and mileage that are paid witnesses in the courts of the United States. In case of contumacy, failure, or refusal of any person to obey such an order, any district court of the United States or of any Territory or possession, or the United States District Court for the District of Columbia, within the jurisdiction of which the inquiry is carried on or within the jurisdiction of which said person who is guilty of contumacy, failure, or refusal is found, or resides, or transacts business, upon the application by the Secretary of Labor or the administrative officer, or the impartial representative designated by either of them, shall have jurisdiction to issue to such persons an order requiring such person to appear before him to produce evidence if, as, and when so ordered, and to give testimony relating to the matter under investigation or in question; and any failure to obey such order of the court may be punished by said court as a contempt thereof; and the Secretary of Labor, or the administrative officer subject to review in his discretion by the Secretary of Labor, shall make findings of fact after notice and hearing, which findings shall be conclusive upon all agencies of the United States and if supported by the preponderance of the evidence shall be conclusive in any court of the United States, and shall make such decisions or orders based upon such findings of fact as are deemed to be necessary to enforce the provisions of this Act. "(b) It shall be unlawful for any person to falsify in any manner or destroy any books, records, documents, or other papers which are required by the Secretary to be set up, maintained, and preserved; or to induce any employee to refrain from giving information concerning the violation of this Act or offering testimony relating to any breach or violation arising hereunder; or to discharge, discriminate against, or penalize any employee for so testifying or offering information, whether it be by force, intimi