Corbin, Col. Clifford L., office of Quartermaster General, War Department- Cornelius, Sidney E., manager Manufacturers Association of Hartford Crockett, A. E., manager Industrial Management Council of Rochester Dairy Industry Committee, by Mr. W. A. Wentworth.... Dinwiddie, Dr. Courtney, of National Child Labor Committee.. Donnelly, Jas. L., executive vice president Illinois Manufacturers' Associ- ation Dried Fruit Association of California, by Samuel A. Syme.. Employers Association of North Jersey, by Arthur M. Torrey, Executive Edgerton, J. E., president, Southern States Industrial Council, Nashville, 326 310 Erwin, Chas. W., of Amalgamated Clothing Workers of America.. Fitzgerald, Raymond A., attorney, Department of Labor.. Fox, Irving C., general counsel, National Retail Dry Goods Association. Frey, John P., president, Metal Trades Department, American Federation Fulbright, Mr. R. C., representing Southern Pine Association Gall, John, associate counsel, National Association of Manufacturers, and representing: Automotive Parts & Equipment Manufacturers, Detroit; Associated Industries of Alabama, Birmingham, Ala.; California Manu- facturers Association, San Francisco; Industrial Association of Cincin- nati, Cincinnati; Associated Industries of Kentucky, Louisville, Ky.; Michigan Manufacturers Association, Detroit; Minnesota Manufacturers Association, St. Paul; Associated Industries of South Dakota, Sioux Falls, S. Dak.; Texas State Manufacturers Association, San Antonio; Associated Industries of Cleveland, Cleveland, Ohio. Gallagher, Wm. J., representing Brotherhood of Painters, Decorators, and Paperhangers, International Organization.. Geometric Tool Company, New Haven, Conn., by Mr. James W. Hook, Green, William L., president American Federation of Labor. Illinois Manufacturers' Association, by James L. Donnelly, executive vice Industrial Management Council of Rochester Manufacturers, filed by Kellogg, Frederick B., attorney, Manufacturers' Association of New 360 553 131 153 273 251 310 345 International Brotherhood of Electrical Workers, by Mr. Joseph S. Mc- 436 238 Leasure, Chester, representing United States Chamber of Commerce_ 439 307 203 McDonagh, Joseph S., representing International Brotherhood of Elec- 436 Machinery and Allied Products Institute, by Mr. John W. O'Leary. 391 262 Manufacturers' Association of Hartford County, Conn., by Sidney E. 326 Manufacturers Association of New Jersey, by Mr. Frederick B. Kellogg, 238 Marshall, James D., representing Associated General Contractors of Mason, Miss Lucy R., general secretary, National Consumers' League_ Miller, Miss Freda, representing the New York State Department of Myles, James M., vice president, Operative Plasterers' and Cement National Consumers' League, by Miss Lucy Mason, general secretary - - - National Crushed Stone Association, by J. R. Boyd, administrative direc- National League of Women Voters, by Mrs. Harris T. Baldwin.... National Young Women's Christian Association_. Page 513 189 286 176 520 189 313 308 298 357 493, 540 550 422 540 391 520 222 Newton, Mr. Cleveland A., representing St. Louis Shoe Manufacturers' Perkins, Hon. Frances, Secretary of Labor. Proctor, Carlton S., chairman, Construction League of the United States. Questionnaire sent to individual members of industry by Congressman ment_ Rothschild, Louis, representing Retailers National Council. Smith, H. Gerrish, president National Council of American Shipbuilders-- Syme, Samuel A., representing Dried Fruit Association of California_ 421 519 552 124, 530 499 233 499 313 290 488 500 236 165 350 United Association of Journeymen Plumbers and Steam Fitters--. 551 Van Patten, Capt. E. H., purchasing officer, Bureau of Supplies and 179 Walsh, Hon. David I., United States Senator from the State of Massachusetts. 412 Weed, Mrs. Helena Hill, of Legislative Committee, National Women's 493 Wentworth, W. A., representing Dairy Products Co--- 301 Zimmerman, Hon. Orville, a Representative in Congress from the State of Missouri___ 402 Tschappat, Maj. Gen. W. H., Chief of Ordnance, War Department.. CONDITIONS OF GOVERNMENT CONTRACTS MONDAY, MARCH 16, 1936 HOUSE OF REPRESENTATIVES, SUBCOMMITTEE OF THE COMMITTEE ON THE JUDICIARY, Washington, D. C. The subcommittee met at 10:30 a. m., Hon. Hatton W. Sumners (chairman) presiding. The CHAIRMAN. Gentlemen, I assume everybody here knows the purpose of the meeting today. This meeting will be conducted by a subcommittee of the Committee on the Judiciary, of which Mr. Healey of Massachusetts is chairman. The bill that is to be considered will be the Healey-Walsh bill. They call it the Walsh-Healey bill over at the Senate, but they have the name wrong [laughter]. Mr. Healey is going to preside. I will ask Mr. Healey now to take the chair. Mr. HEALEY. The subcommittee will come to order for the purpose of conducting hearings on H. R. 11554. A copy of the bill will be made a part of the record. (H. R. 11554 is as follows:) [H. R. 11554, 74th Cong., 2d sess.] A BILL 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 in any purchases of or contracts for construction, articles, materials, supplies, equipment, or services, except professional services, in an amount exceeding $2,000 by any executive department, independent establishment, or other agency or instrumentality of the United States, 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), there shall be required to be included in the proposal or contract a representation or agreement that all persons hereafter employed by the principal contractor in classes of employment described specifically or by reference in the invitation to bid, while engaged in the construction, or the production or furnishing of articles, materials, supplies, equipment, or services, in connection with, or which may be identified as part of the subject matter of, the purchase or contract will be paid not less than such minimum rates of pay and employed not to exceed such maximum hours as shall be designated specifically or by reference in the invitation to bid, and that no person under sixteen years of age and no convict labor will be employed by the principal contractor in the construction, or the production or furnishing of articles, materials, supplies, equipment, or services, in connection with, or which may be identified as part of the subject matter of, the purchase or contract. SEC. 2. Every purchase or subcontract by the principal contractor or by the person engaged in the performance or the productive operations under the principal contract for construction, articles, materials, supplies, equipment, or services (except professional services) with respect to the subject matter of the principal purchase or contract shall be deemed to contain the representations or agreements incorporated therein, and any breach or violation thereof shall be deemed a breach or violation by the employer directly responsible therefor, and shall not subject the principal contractor to any of the provisions of section 3 (1) or section 3 (2), provided he has given actual notice of such representations or agreements to such employer. SEC. 3. Every representation or agreement made pursuant to the provisions of this Act by a principal contractor, subcontractor, or supplier, shall provide: (1) That any breach or violation thereof shall render the party responsible therefor liable to the United States as and for liquidated damages in- (a) a sum equal to twice the difference between the amount required to be paid to employees, including the amount required to be paid for overtime in excess of the maximum hours designated in the invitation for bids, and the amount actually paid; (b) the sum of $10 per day with respect to each person under sixteen years of age employed in violation of any representation or agreement. (2) That the exaction or acceptance of any refunds or kick-backs of wages, in any form whatsoever, from employees shall render the party exacting or accepting same liable to the United States as and for liquidated damages in a sum equal to five times the amount of such refund: Provided, That allowance shall be made for any penalty imposed on account of the same act or transaction and collected under any other Act of Congress; (3) That any breach or violation thereof shall entitle the other contracting party to cancel the contract with respect to which the representation or agreement is made, and to make open-market purchases or have the work completed, charging any additional cost to the party responsible for the breach of violation; (4) That the principal contractor shall, if directed by the contracting officer upon the recommendation of the Secretary of Labor, cancel any subcontract for a breach by the subcontractor of his representation or agreement, and failure on the part of the principal contractor so to cancel shall subject his contract to cancelation. SEC. 4. Any sums due to the United States by virtue of the foregoing section may be withheld from any amounts due upon any contracts or may be recovered in suits brought in the name of the United States by the Attorney General. Sums withheld or recovered shall be held in a special deposit account, and shall be applied, on order of the Secretary of Labor, to payment of deficiency in wages to employees who have been paid less than the minimum rates of pay and on account of whose services 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 the notification to the supplier or contractor of the withholding or recovery by the United States of such sums. SEC. 5. Any bid or proposal received by an agency of the United States may be rejected when it has been determined, pursuant to the provisions of this Act, that the person submitting the same has in the performance of any other contract breached any of the agreements or representations required by this Act. SEC. 6. The Secretary of Labor is hereby authorized to create in the Department of Labor a unit for administering the provisions of this Act, and without regard to the civil-service laws, but in accordance with the Classification Act of 1923, as amended, to appoint and to fix the compensation of such officers, attorneys, examiners, and to appoint such other employees with regard to existing laws applicable to the employment and compensation of employees of the United States and to utilize such Federal officers and employees, and, with the consent of the State, such State and local officers and employees as he may find necessary to discharge the duties of said unit, and to prescribe rules and regulations with respect to their duties. SEC. 7. Upon his own motion, or on complaint of a breach or violation of a representation, agreement, or covenant made as herein provided, the Secretary of Labor or representative designated by him 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. 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 by any person to obey such an order, any District Court of the United States or of any Territory or possession, or the Supreme Court of 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 |