by counsel or in person to present testimony. In any such proceeding, the examiner or the Board shall not be bound by the rules of evidence prevailing in courts of law or equity.

(c) The testimony taken by an examiner or the Board shall be reduced to writing and filed in the office of the executive secretary. Thereafter, in its discretion, the Board may itself take further testimony and/or hear argument. If upon all the testimony taken, the Board shall be of the opinion that any person named in the complaint has engaged in or is engaging in any such unfair labor practice, then the Board shall state its findings of fact and shall issue an appropriate order directed to such person. The order may require such person to cease and desist from such unfair labor practice, or to take affirmative action, or to pay damages, or to reinstate employees, or to perform any other acts that will achieve substantial justice under the circumstances. Such order may further require such person to make a report from time to time showing the extent to which he has complied with the order. Until a transcript of the record in a case shall have been filed in a court, as hereinafter provided, the Board may at any time, upon such notice and in such manner as it shall deem proper, modify or set aside, in whole or in part, any finding or order made or issued by it.

(d) If such person fails or neglects to obey such order of the Board while the same is in effect, the Board may petition any district court of the United States within any district wherein the labor practice in question was engaged in or wherein such person resides or carries on business, or the Supreme Court of the District of Columbia, for the enforcement of the order of the Board, and shall certify and file in the Court a transcript of the record upon which such order was entered, together with a copy of the findings and the order of the Board. Upon such filing of the petition and transcript. the court shall place such petition upon its motion or equity calendar and shall cause notice thereof to be served upon such person, and thereupon shall have jurisdiction of the proceeding and of the question determined therein, and shall have power to make and enter upon the pleadings, testimony, and proceedings set forth in such transcript a decree affirming, modifying, or setting aside in whole or in part the order of the Board. No objection to the order of the Board shall be considered by the court unless such objection shall have been urged before the Board. The findings of the Board as to the facts, if supported by evidence, shall be conclusive. If either party shall apply to the court for leave to adduce additional evidence and shall show to the satisfaction of the court that such additional evidence is material and that there were reasonable grounds for the failure to adduce such evidence in the hearing before the Board, the court may order such additional evidence to be taken before the Board and to be adduced upon the hearing in such manner and upon such terms and conditions as to the court may seem proper. The Board may modify its findings as to the facts, or make new findings, by reason of aditional evidence so taken, and it shall file such modified or new findings, which, if supported by evidence, shall be conclusive, and shall file its recommendations, if any, for the modification or setting aside of its original order. The jurisdiction of the court shall be exclusive and its judgment and decree, affirming, modifying, or setting aside, in whole or in part, any order of the Board, shall be final, except that the same shall be subject to review by the appropriate Circuit Court of Appeals or the Court of Appeals of the District of Columbia, and by the Supreme Court of the United States upon writ of certiorari or certification as provided in sections 239 and 240 of the Judicial Code, as amended (U.S.C. title 28, secs. 346 and 347). The commencement of proceedings under this subsection shall not, unless specifically ordered by the court, operate as a stay of the Board's order.

(e) Any person aggrieved by an order of the Board may obtain a review of such order in any district court of the United States in the district wherein the unfair labor practice in question was engaged in or wherein such person resides or carries on business, or in the Supreme Court of the District of Columbia, by filing in such court, within ten days after the entry of such order, a written petition praying that the order of the Board be modified or be set aside in whole or in part. A copy of such petition shall be forthwith served upon the Board, and thereupon the aggrieved party shall file in the court a transcript of the record, certified by the Board, upon which the order complained of was entered, together with a copy of the findings and order of the Board. No objection to the order of the Board shall be considered by the Court unless such objections shall have been urged before the Board. The findings of the Board as to the facts, if supported by evidence, shall be conclusive. If either party shall apply to the court for leave to adduce additional evidence and shall show to the satisfaction of the court that such additional evidence is material and that there were reasonable grounds for

the failure to adduce such evidence in the hearing before the Board, the court may order such additional evidence to be taken before the Board and to be adduced upon the hearing in such manner and upon such terms and conditions as to the court may seem proper. The Board may modify its findings as to the facts, or make new findings, by reason of the additional evidence so taken, and it shall file such modified or new findings, which, if supported by evidence, shall be conclusive, and shall file its recommendations, if any, for the modification or setting aside of its original order. The jurisdiction of the court shall be exclusive and its judgment and decree, affirming, modifying, or setting aside, in whole or in part, any order of the Board, shall be final, except that the same shall be subject to review by the appropriate Circuit Court of Appeals or the Court of Appeals of the District of Columbix, and by the Supreme Court of the United States upon writ of certiorari or certification as provided in sections 239 and 240 of the Judicial Code, as amended (U.S.C., title 28, secs. 346 and 347). The commencement of proceedings under this subsection shall not, unless specifically ordered by the court, operate as a stay of the Board's order.

(f) No court shall have any jurisdiction to enjoin the Board or an examiner from taking action or holding hearings under a complaint.

(g) Petitions filed under this Act shall be heard expeditiously, and if possible within ten days after they have been docketed.

(h) Complaints, orders, and other process of the Board and its agents may be served by anyone duly authorized by the Board, either (1) by delivering a copy thereof to the person to be served, or to a member of the partnership to be served, or to the president, secretary, or other executive officer, or a director of the corporation to be served; or (2) by leaving a copy thereof at the principal office or place of business of such person, partnership, or corporation; or (3) by registering and mailing a copy thereof addressed to such person, partnership, or corporation at his or its principal office or place of business; or (4) by sending a telegraphic copy thereof addressed to such person, partnership, or corporation at his or its principal office or place of business. The verified return by the person so serving said complaint, order, or other process setting forth the manner of said service shall be proof of the same, and the return post-office receipt or telegraph receipt for said complaint, order, or other process registered and mailed or telegraphed as aforesaid shall be proof of the service of the same.

SEC. 206. (a) The Board shall have power to act as arbitrator in labor disputes. When any of the parties to a labor dispute agree to submit the whole or any part thereof to the aribtration of the Board, and the Board accepts such submission, the agreement shall be valid, irrevocable, and enforceable as to the submitting parties save upon such grounds as exist at law or in equity for the revocation of any contract. In any case accepted by it for arbitration the Board shall have power to issue an award applicable to the submitting parties.

(b) Unless a party to the arbitration has otherwise stipulated at the time of the submission of the case to the Board, any party to the arbitration, or the Board itself, may within one month after the award is made, apply to the Supreme Court of the District of Columbia for an order confirming the award, and thereupon the court shall grant such an order unless the award is vacated, modified, or corrected as hereinafter prescribed. Notice of the application shall be served upon the other parties to the arbitration by the marshal of any district within which they may be found, in like manner as any other process of such court, and thereupon such court shall have jurisdiction of such parties as though they had appeared generally in the proceeding.

(c) The court may make an order vacating the award upon the application of any party to the arbitration if the Board exceeded its powers or executed them so imperfectly that a mutual and definite award upon the subject matter was not made. The court may make an order modifying or correcting the award upon the application of any party to the arbitration if (1) the award covers a matter not submitted to the Board (unless the award upon such matter does not affect the merits of the decision upon the matter submitted) or (2) the award is imperfect in matter of form not affecting the merits of the controversy. The order may modify or correct the award so as to effect the intention thereof and promote justice between the parties. A party to the arbitration, claiming to be aggrieved by the award, may apply to the court, within one week after the award is made, for an order vacating, modifying, or correcting the award. Notice of such application shall be served upon all other parties to the arbitration proceeding or their attorneys by the marshals of the respective districts within which such parties may be found. For the purposes of the application any judge who might make an order to stay the proceedings in any action brought in the same court

may make an order, to be served with the notice of the application, staying the enforcement of the award.

(d) The party applying for an order confirming, modifying, or correcting an award shall, at the time the application is filed, also file the following papers with the clerk of the court: (1) An agreement to arbitrate; (2) the award of the Board; and (3) each notice, affidavit, or other paper used upon an application to confirm, modify, or correct the award, and a copy of each order of the court upon any such application. The order shall be docketed as if it were rendered in a suit in equity and shall have the same force and effect in all respects as, and be subject to all the provisions of law relating to, a decree in a suit in the court in which it is entered; and it may be enforced as if it had been rendered in a suit in the curt in which it is entered.

SEC. 207. (a) In any dispute as to who are the representatives of employees, the Board, if the dispute might burden or affect commerce or obstruct the free flow of commerce, may investigate such dispute and certify to the parties, in writing, the name or names of the individuals or labor organizations that have been designated and authorized to represent employees. In any such investigation the Board shall be authorized to take a secret ballot of employees or to utilize any other appropriate method to ascertain their representatives. The Board shall decide whether eligibility to participate in elections shall be determined on the basis of employer unit, craft unit, plant unit, or other appropriate grouping.

(b) In any dispute not of the character described in subsection (a) as to who are the representatives of employees the Board may offer its services to aid in determining who are employees' representatives.

SEC. 208. For the purpose of all hearings and investigations, which, in the opinion of the Board, are necessary and proper for the exercise of the powers vested in it by sections 205 and 207 (a)—

(1) Any member of the Board, or any agent designated by it for such purposes, is empowered to administer oaths and affirmations, take depositions, subpena witnesses, take evidence, and require the production of any books, papers, or other documents which the Board deems relevant or material to the inquiry. Such attendance of witnesses and the production of such documentary evidence may be required from any place in the United States or any Territory or possession thereof, at any designated place of hearing.

(2) In case of contumacy or refusal to obey a subpena issued to any person, any district court of the United States, the United States courts, of any Territory or possession, and the Supreme Court of the District of Columbia, within the jurisdiction of which said person guilty of contumacy or refusal to obey is found or resides, upon application by the Board, shall issue to such person an order requiring such person to appear before the Board, or an examiner designated by it, there to produce documentary evidence if so ordered, or there to give evidence touching the matter in question; and any failure to obey such order of the court may be punished by said court as a contempt thereof.

(3) No person shall be excused from attending and testifying or from producing books, papers, contracts, agreements, and other documents before the Board, or in obedience to the subpena of the Board or any member thereof or any agent designated by it, or in any cause, prodceeing, or investigation instituted by the Board, on the ground that the testimony or evidence, documentary or otherwise, required of him, may tend to incriminate him or subject him to a penalty or forfeiture; but no inidvidual shall be prosecuted or subjected to any penalty or forfeiture for or on account of any transaction, matter, or thing concerning which he is compelled, after having claimed his privilege against self-incrimination, to testify or produce evidence, documentary or otherwise; except that such individual so testifying shall not be exempt from prosecution and punishment for perjury committed in so testifying.

(4) Witnesses summoned before the Board or any of its examiners shall be paid the same fees and mileage that are paid witnesses in the courts of the United States, and witnesses whose depositions are taken and the persons taking the same shall severally be entitled to the same fees as are paid for like services in the courts of the United States.

(5) The several departments and agencies of the Government, when directed by the President, shall furnish the Board, upon its request, all records, papers, and information in their possession relating to any matter before the Board.

SEC. 209. The Board shall have authority from time to time to make, amend, and rescind such rules and regulations as may be necessary to carry out the provisions of this Act. Such rules and regulations shall be effective upon publication in the manner which the Board shall prescribe.

SEC. 210. Any person who shall willfully assault, resist, prevent, impede, or interfere with any member of the Board or any of its agents in the performance of his duties pursuant to section 205 or section 207 (a), shall be punished by a fine of not more than $5,000, or by imprisonment for not more than one year, or both.

TITLE III

SEC. 301. There is hereby created in the Department of Labor the United States Conciliation Service, under the direction of a Director of Conciliation. The Secretary of Labor shall appoint and fix the compensation of such Director, and shall have authority to appoint and fix the compensation of such commissioners of conciliation, clerks, and other officers and employees as he may from time to time find necessary for the proper performance of the duties of the Service, and as may from time to time be appropriated for by Congress. The Secretary of Labor may make such appointments without regard to the provisions of the civil-service laws or the Classification Act of 1923, as amended. SEC. 302. It shall be the duty of the United States Conciliation Service, whenever the Director deems it desirable, to offer its services to the parties to any labor dispute, and to attempt to adjust such dispute by consiliation or mediation, or by arranging for voluntary arbitration. Nothing in this title shall limit the power given to the Secretary of Labor under section 8 of the Act of March 4, 1913 (U.S.C., title 5, sec. 619).

SEC. 303. Nothing in this Act shall be construed so as to interfere with or mpede or diminish in any way the right to strike.

SEC. 304. (a) Wherever the application of the provisions of section 7 (a) of the National Industrial Recovery Act and/or of the Act entitled "An Act to amend the Judicial Code and to define and limit the jurisdiction of courts sitting in equity, and for other purposes", approved March 23, 1932 (U.S.C., title 29, secs. 101-115), conflicts with the application of the provisions of this Act, the provisions of this Act shall prevail; Provided, That in any situation where the provisions of this Act cannot be validly enforced, the provisions of section 7 (a) of the National Industrial Recovery Act and/or of such Act of March 23, 1932, shall apply.

(b) Any term of a contract or agreement of any kind which conflicts with the provisions of this act is hereby abrogated, and every employers who is a party to such contract or agreement shall immediately so notify his employees by appropriate action.

SEC. 305. If any provision of this act, or the application of such provision to any person or circumstance, shall be held invalid, the remainder of this act, or the application of such provision to persons or circumstances other than those as to which it is held invalid, shall not be affected thereby.

The CHAIRMAN. Senator Wagner, you are the author of this bill? Senator WAGNER. Yes.

The CHAIRMAN. We will be pleased to have you address the committee.

STATEMENT OF HON. ROBERT F. WAGNER, SENATOR FROM NEW YORK

Senator WAGNER. Thank you, Mr. Chairman.

Mr. Chairman and members of the committee, the bill that I have introduced projects no novel element into the recovery program nor does it present a fundamentally new matter for the consideration of Congress. It is designed merely to carry out that program according to its original intent, and to bolster it at the only spot where experience has proved that it is lamentable weak.

Section 7 (a) of the Recovery Act was not a mere afterthought or appendage. It was one of the three mainsprings of cooperation among industry, labor, and government. Last June everyone realized that the spirit of united action must replace the blind competition that had lead to economic and social disintegration. But every realistic student of affairs knew that it would be unfair and dangerous to

encourage one group to cooperate without encouraging others to do likewise. Such uneven development would enable the strong to oppress the weak and throw our entire industrial machinery out of gear. For this reason, Congress projected into economic affairs the essence of true democracy, by outlining a system of checks and balances between industry and labor, crowned by governmental supervision and advice.

Since the passage of the Recovery Act, the development of the practice of united action has been so one sided that there is danger of a worse balance than persisted in the past. Trade associations have been strengthened enormously, and industry has gained practically unchallenged control of the code authority mechanism. During the very same period, genuine cooperation among employees has received one setback after another.

The 40,000,000 working people in this country rightly feel that this is unfair, and their opinion meets with the substantial accord of all who are fair-minded.

The CHAIRMAN. Is this due to the one-sided views of the personnel of these boards?

Senator WAGNER. Well, it is due partly, perhaps, to one-sided views. It is due also to what I regard as misinterpretations of Section 7(a), and to the resistance of employers, as I shall develop.

The CHAIRMAN. Would you tell us later how these boards are constituted?

Senator WAGNER. Yes. Suppose, Mr. Chairman, I finish this and then I will be delighted to answer any questions.

The CHAIRMAN. Certainly.

Senator WAGNER. Without full employee participation in the recovery program, wages are again lagging behind production and profits. This is a very important matter. If this disparity continues, we may expect another collapse. In addition, employees are becoming impatient at the denial of their rights, and strikes and violence are appearing in various parts of the country. I am in a position to know this. The very events are occurring that Congress sought to prevent by section 7 (a). The question is not one of abstract justice; it affects us all.

My 6 months' experience as Chairman of the National Labor Board, and the experience of innumerable other people who have been following conscientiously the course of events, indicate that the weaknesses in section 7 (a) should and can be cured. That is the object of the present bill.

The first defect of 7 (a) is that it restated the right of employees to bargain collectively, but did not impose upon employers the duty to recognize such representatives. Failure to acknowledge this correlative duty has caused more than 70 percent of the disputes coming before the National Labor Board. The new bill, therefore, provides that employers shall recognize those chosen by their workers and shall make reasonable attempts to arrive at satisfactory agreements. This provision does not tread upon new ground, but follows the welltested experience of the Railway Labor Act.

The second defect in section 7 (a) has turned upon a question of interpretation. The law says that employees shall be allowed to choose their own representatives. This has been read to mean that even after the overwhelming majority in a plant desire a collective