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PURCHASE OF SUPPLIES AND THE MAKING OF CONTRACTS BY THE UNITED STATES

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DOCUMENT

BEFORE A

DIV.

SUBCOMMITTEE OF THE COMMITTEE ON EDUCATION AND LABOR

UNITED STATES SENATE

SEVENTY-SIXTH CONGRESS

FIRST SESSION

ON

S. 1032

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

MAY 13, 18 and 19, 1939

Printed for the use of the Committee on Education and Labor

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COMMITTEE ON EDUCATION AND LABOR

ELBERT D. THOMAS, Utah, Chairman DAVID I. WALSH, Massachusetts

WILLIAM E. BORAH, Idaho JAMES E. MURRAY, Montana

ROBERT M. LA FOLLETTE, JR., Wisconsin VIC DONAHEY, Ohio

JAMES J. DAVIS, Pennsylvania
RUSH D. HOLT, West Virginia

ROBERT A, TAFT, Ohio
CLAUDE PEPPER, Florida
ALLEN J. ELLENDER, Louisiana
JOSH LEE, Oklahoma
LISTER HILL, Alabama

SUBCOMMITTEE ON S. 1032

DAVID I. WALSH, Massachusetts, Chairman CLAUDE PEPPER, Florida

ROBERT M. LA FOLLETTE, JR., Wisconsin LISTER HILL, Alabama

ROBERT A. TAFT, Ohio
EARL B. WIXCEY, Clerk
W. ALAN THODY, Assistant Clerk

II

CONTENTS

Pago

1

59

75

Saturday, May 13, 1939.

Thursday, May 18, 1939.

Friday, May 19, 1939.-

WITNESSES

Statement of -

L._Metcalfe Walling, Administrator, Division of Public Contracts,

Department of Labor..

Maj. Joel F. Watson, Office of The Judge Advocate General, War

Department

Capt. c. W. Fisher, Construction Corps, United States Navy-

Commander M. L. Ring, Supply Corps, United States Navy-

Hon. John E. Miller, Senator from the State of Arkansas.-

George 0. Tiffany, counsel, Evaporated Milk Association, Chicago,

Ill..

George Dougherty, assistant secretary, National Association of Manu-

facturers of Pressed and Blown Glassware.

Herman L. Dillingham, business manager, American Glassware Asso-

ciation.

Lee Pressman, representing the Congress of Industrial Organizations..

Joseph A. Padway, counsel, American Federation of Labor..

Hon. Pat Cannon, Congressman from the State of Florida -

David Kaplan, director, International Association of Machinists,

American Federation of Labor.

W. A. Calvin, secretary-treasurer, Metal Trades Department, Ameri-

can Federation of Labor..

A. C. Moore, president, Chicago Railway Equipment Co., Chicago,

Ill.

G. 0. Hodge, Phoenix Iron Co., Phoenixville, Pa..

H. P. Bigler, representing the Rail Steel Bar Association..

Hugh G. Daley, president, Sweey Steel Co., Williamsport, Pa--

R. S. Smethurst, associate counsel, National Association of Manu-

facturers...

William J. Kelly, president, Machinery and Allied Products Insti-

tute.---

Walter J. Petersen, representing the Pacific American Steamship

Association.

L. Metcalfe Walling, Administrator, Division of Public Contracts,

Department of Labor-resumed.,

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REPORTS, LETTERS, TABLES, ETC., FILED AND PRINTED

Senator Alexander Wiley, amendment offered by

S. 2165, Seventy-fifth Congress, third session...

Senate Report No. 1810, Seventy-fifth Congress, third session.

Public, No. 846, Seventy-fourth Congress-

21

Senate Report No. 1193, Seventy-fourth Congress, first session

23

Senator Lister Hill, memorandum explaining an amendment.

44

Statement by the Secretary of Labor and a technical draft of amendments.. 45

Comptroller General of the United States, letter and report..

51

Department of Labor, Division of Public Contracts, letters --

54, 55

American Federation of Labor, letter and proposed amendment.

57

Senator John E. Miller, proposed amendment..

Senator Alexander Wiley:

Telegram addressed to..

60

Memorandum relating to the exemption of contracts for the purchase

of dairy products under the Walsh-Healey Act.

60

Joseph A. Padway:

Letter submitted, addressed to W. C. Hushing, from the United Hat-

ters, Cap and Millinery Workers International Union.--

75

Table submitted showing public contracts of $9,000 to $10,000 awarded

to hat and cap manufacturers.

76

Congressman Pat Cannon:

Submitted H. R. 6395 introduced by him in the House of Representa-

tives..

80

Letter submitted by him from the American Federation of Labor.

80

R. S. Smethurst, supplemental statement submitted in opposition to pro-

posed amendments to Walsh-Healey Public Contracts Act..

102

William J. Kelley, supplementary statement submitted by --

111

L. Metcalfe Walling:

Joint Resolution No. 40, Legislature of Wisconsin, submitted by - 115

List of contracts awarded by the War Department and Navy Depart-

ment from September 28, 1936, to May 13, 1939, filed with the com-

mittee.

117

0. J. Condon, statement submitted.

259

Manufacturers' Association of New Jersey, letter and resolution of..

261

St. Louis Chamber of Commerce, letter of

262

Nestle's Milk Products, Inc., letter of

262

Industrial Union of Marine and Shipbuilding Workers of America, letter of,

and statement of..

263

Central Iron & Steel Co., Harrisburg, Pa., statement of_

265

United Shoe Workers of America, statement and tables submitted.

266

Lee Pressman, letter and supplemental statement submitted.-

269

National Council of American Shipbuilders, letter and statement sub-

mitted..

270

PURCHASE OF SUPPLIES AND THE MAKING OF

CONTRACTS BY THE UNITED STATES

SATURDAY, MAY 13, 1939

UNITED STATES SENATE,

SUBCOMMITTEE OF THE
COMMITTEE ON EDUCATION AND LABOR,

Washington, D. C.
The subcommittee met pursuant to call, at 10 a. m., in room 357,
Senate Office Building, Senator David I. Walsh (chairman) presid-
ing.
Present: Senators Walsh (chairman), Hill, and La Follette.

Senator Walsh. The committee will come to order please. The committee is met this morning to hold a hearing on S. 1032, 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.

In connection with this bill, an amendment has been offered to it by Senator Wiley:

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, or to perishables, including livestock and nursery products.'"

(S. 1032 is as follows:)

[S. 1032, 76th Cong., 1st sess.) 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 American 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 mak, ing of contracts by the United States, and for other purposes,” is hereby amended as follows:

Section 1 is hereby amended by striking out the entire section and substituting in lieu thereof the following:

"SECTION 1. 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 (all the foregoing being hereinafter designated as agencies of the United States), for the manufacture of 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 by the contractor and subcontractor in the manufacture or furnishing of the supplies required under the contract will be paid not less than the minimum wages as determined by the Secretary of Labor to be the prevailing minimum wages for persons employed on similar work or in the particular or similar industries or groups of industries currently operating in

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