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or the rates of pay obtained by this group


an alarming situation and one that, in of workers. But from past experience The Bureau of Business and Economic Re- the view of the workers in the industry, in similar situations, we can be positive search of Northeastern University, in Boston, cannot be further ignored. that most, if not all, of these workers are

is trying to find out in a survey of displaced The Congress will be utterly delinquent

workers in Lawrence-part of a broad study now employed in less desirable jobs and

in meeting its responsibilities, if it fails at a lower scale of wages than they ginning to show some interesting results. launched about a year ago that's now be

to take at least the one important step earned when they lost out in their form

Under the direction of William H. Miernyk,

to aid unemployed workers, which is er place of employment.

the bureau has so far interviewed 756 work- embodied in legislation being considered Eighteen percent of the 131 persons ers from 3 liquidated mills in 3 cities—a here today. in this group have retired from the la- woolen mill in New Hampshire, a cotton mill Mr. LESINSKI. Mr. Chairman, I will bor market and are not looking for work. in Fall River, Mass., and a cotton mill in

be brief on this because the Members This does not mean that none of these Lowell, Mass.

here know how I stand. We have hun

. individuals no longer need jobs; it simply


dreds of thousands of jobless automomeans that they have given up the search First findings, which later case studies bile workers, hundreds of thousands of for reemployment. probably will confirm, show:

jobless steelworkers, and millions of Fifty-two percent of the total are to- Most of those laid off were still in the labor other jobless walking the streets of this

force, either employed or actively seeking day unemployed after having been laid

Nation desperately looking for work. employment, though a few of the displaced off for longer than 12 months. workers-mostly young married women or

Their unemployment compensation Thirty-six percent of these 131 men

checks are not big enough to feed and very old workers-dropped out within a year. and women have not been able to find a

More men than women had been reem

shelter their families, and they do not paid job of any kind for even 1 day dur- ployed, and workers over 45 years of age .

last long enough to tide the workers ing this period of over a year. All of were having a particularly hard time finding over the period of

period of unemployment. the 52 percent that are still jobless are

new jobs. Among the job seekers, 80 percent Therefore, they are going deep into debt actively looking for work and have done were drawing unemployment compensation

and going without necessities. when interviewed. everything possible to find jobs during

I cosponsored the Forand bill to in. Most of those with new jobs were in other all these long weary months since their textile mills, in nonmanufacturing work, or

crease benefits-for example, in Michiplant went out of business. in established, relatively static nongrowth

gan, from a top weekly primary benefit What these figures mean is that a industries; comparatively few had found

of $30 to about $56 for anyone earning small proportion of the 52 percent that their way into newer, expanding growth in- over $112 normally and half-pay for are today idle have picked up occasional dustries—machinery, electronics, and the anyone earning less than that-and to

like. jobs during the past year, but that the

extend the period of benefits to 39 weeks. bulk of those who are seeking work have

The majority of the reemployed were earn

The Republicans in the Ways and Means ing less than before, and many had been not earned a cent from any kind of paid downgraded—from skilled to semiskilled, or

Committee killed that bill and reported employment since they were first thrown from semiskilled to unskilled classifications.

out this one which does not do a thing on the labor market more than 1 year Most told interviewers they were unhappy

to raise benefits anywhere in the counago. in new jobs, in part because of the lower

try. All it does is take in a few more DURATION OF BENEFITS MUST BE INCREASED

pay and rating, but also because they had people—and the Forand bill would have

lost seniority and saw little opportunity for gone much further in that regard. Surely the Members of Congress must advancement.

Now all we can do in the House is vote see from these figures, which certainly


on two amendments which would affect apply to similar situations in other textile States, that the average duration

According to Miernyk, these findings ex

us in Michigan-one amendment is to plode a myth that has gained currency adopt the Forand bill formula on beneof employment benefit payments must

among New England businessmen and many fits. I support it. It is vital that it be be increased. Maximum duration of

economists in the last few years: That growth adopted. I urge the Republican Membenefits in Rhode Island is 26 weeks. industries, particularly electronics, have

bers here to join us on the Democratic Textile States elsewhere do not even pay been taking up a lot of the textile slack in

side in writing it into the law. The for that number of weeks. Therefore, it employment. That's not the way it looks, Republican President once went on recis painfully evident that practically all Miernyk says, commenting:

In view of the recent public statements of these 52 percent who lost their jobs

ord favoring this amendment. But he that New England will gain by the *

seems to have run out on it since thenhave had no income whatever, except

diversification of industry, we feel that these his whole party leadership up here has possibly from relief for a period of at

findings are timely. *** Statements by per- tried to block it. least 6 months. Even assuming that

sons in important positions have created the Unemployment, Mr. Chairman, means some of these families had savings, it is cruel illusion that new jobs are to be procertain that by now these accumulations

children without proper food or clothvided for the displaced textile workers.”

ing; it means families going without have been completely exhausted.

Diversification helps, but new industries

necessities; it means evictions—getting How are these people living? Frankly, evidently are filling jobs with newcomers in I do not know. I do not know that there the labor market instead of with displaced

thrown into the street. is suffering and deprivation among this

textile workers, according to the bureau's We were supposed to have an insur

findings. Of the first 756 workers checked, ance system to protect against that. But group despite their diligent search for work. The community suffers also from

only 5 percent found jobs in growth indus- now, with a full-scale recession follow

tries. the fact that these people have no pur

ing the election of the first Republican

VARIATIONS chasing power. Moreover, friends and

administration in 20 years, we find the

Along with these general conclusions each system is not adequate to present-day relatives of such individuals must be of the first mills surveyed turned up some stinting themselves and possibly even

needs and requirements. interesting sidelights. going into debt to share with those who

We on the Democratic side automat

In Lowell, younger male workers found are absolutely without funds. new jobs, but those over 45 years of age still

ically react to a situation like that by ults of this Rhode Island survey

were largely unemployed after a year; women trying to improve the benefits and bring are in line with an earlier report along

in all age groups were having a harder time them up to date to meet the present the same lines appearing in Business getting new jobs than men were.

conditions. But I am afraid the MemWeek for March 6 of this year. I quote

In New Hampshire, the woolen mill closed bers on the Republican side seem to re

in a one-factory town with a population of from this article:

act automatically to a situation like that 1,500, miles away from any fair-sized city. by closing their eyes and doing nothing. When a New England textile mill closes its The mill closing idled 200 workers. A leather doors, what happens to the uprooted work

Mr. COOPER. Mr. Chairman, I yield products firm moved into the mill building, ers? That's a big question throughout New and reemployed part of the textile jobless.

8 minutes to the gentleman from West England today, and one that—so far-has But 2 years after the shutdown almost a third

Virginia [Mr. BAILEY). never been adequately answered.

of the 200 laid off in the woolen mill were Mr. BAILEY. Mr. Chairman, coming Unemployment figures tell only part of the still out of work. For the other two-thirds, from a district in the State of West Virstory. That is clear in Lawrence, Mass., who got jobs, the average period of unem

ginia that is largely industrial, and where many more textile jobs have been ployment was about 5 months. wiped out in recent years than are shown

speaking for my State as a whole, it is by jobless data and figures on expanded

The picture of what is happening in an industrial rather than an agricultural employment in other industries. What hap- the textile industry which I have given State, I am naturally interested in the pened to the rest?

here is not a pretty one. Indeed, it is provisions of H. R. 9709 and its objectives. I had hoped that this legislation when he is unemployed as though he would not only broaden and extend the were 1 of 5, as the gentleman from coverage in this field of unemployment Pennsylvania (Mr. EBERHARTER] said. compensation, but would also liberalize I am also in favor of the provisions it. I fear that H. R. 9709 as presently that the President recommended, but I written does little in the way of liberal- think the States should do it and I was izing legislation. It does broaden it by

It does broaden it by wondering why the State of West Virbringing under coverage employers who ginia had not done it. employ less than 8 individuals, if they Mr. BAILEY. West Virginia, Mr. are not employing less than 4. I under- Chairman, is more vitally interested in stand that will probably bring 1.3 million the amount of the weekly payment that additional people under coverage.

is made available to the unemployed. I was interested in the remarks of Presently our maximum is $30. Under the gentleman from Wisconsin (Mr. the proposal which will be offered by the BYRNES], who was opposing that pro- distinguished gentleman from Rhode vision, and I would like to say that I can Island (Mr. FORAND], those weekly paysee no reason why the protection ac- ments would be upped to a total of $46 corded in the way of unemployment as against $30 in the present payments. compensation should be any different as Mr. FORAND. Mr. Chairman, will between employers who employ 8 people the gentleman yield? and those who employ only 4 people. I Mr. BAILEY. I yield. can see that many of those smaller em- Mr. FORAND. Is it not a fact that ployers might be farm people. I could

one of the principal reasons why the readily understand that in the remarks

State of West Virginia has not come of the gentleman from the State of Wis- down to one employee or that the beneconsin. That is a matter where the re

fits have not been increased or that the action is local and does not approach it benefit period has not been lengthened from the standpoint of national con

is because of competition of other sideration.

States? It is a protection seeking to Mr. BYRNES of Wisconsin. Mr. protect the industry in a given State Chairman, will the gentleman yield? that keeps the State from broadening Mr. BAILEY. I yield.

out whereas if we had a Federal scale Mr. BYRNES of Wisconsin. My only under an act of Congress they all would point was that each State should be able come under it. to make that determination itself. Mr. BAILEY. That is a fact. I apThere is nothing to prohibit a State from preciate the comments of the gentleman covering employees and employers in from Rhode Island. Let me say that in two-man plants, where there is just an a State like my State of West Virginiaemployer and one employee. That is

and it is true in many others, that there the only point I wanted to make. It

is considerable unemployment at the should be a question for the States. I present time. If there is any excuse for am not saying at all that some States unemployment compensation it is to stashould not cover, as they do today, em- bilize the national economy and I have ployers of one or more employees, but to bring up a discussion of our trade it would seem to me that various areas policies-unemployment is down in the in the country have different problems, State of West Virginia due to the fact and their state governments should be that 5 or 6 of our major industries are able to make that determination unre- affected by foreign imports. We have stricted by federally imposed minimums. some hundred thousand or more unem

Mr. BAILEY. I thank the gentleman ployed, we have 136,000 people getting for his comments.

Federal grants of surplus food. It is a Mr. KEAN. Mr. Chairman, will the situation in which if $46 a week were gentleman yield?

made available instead of $30 it would Mr. BAILEY. I yield to the gentle- stabilize to a certain extent the purman from New Jersey.

chasing power of those unemployed Mr. KEAN. I notice in a chart in the people; it would tend to make better hearings that in the gentleman's State business for the merchants and other of West Virginia they only cover em- people who are in business in that area ployers of eight.

by making more purchasing power availMr. BAILEY. That is right.

able. We are very much in favor of the Mr. KEAN. Your State has been un- proposal that will be made by the gender the control of your party for a great tleman from Rhode Island in his atmany years. Why has not the State of tempts to liberalize this bill. I regret West Virginia gone out and covered em- only that he is not extending the period ployees of one, as most States do now? of weekly payments above the present

Mr. BAILEY. Let me say to the gen- 21-, 22-, 24-, or 26-week limit, as the tleman from New Jersey that my State case may be, to a greater length of time. was one of the first States to enter the While it looks as though our employunemployment compensation field. We ment situation in West Virginia is imstarted off with 26 weeks at $25 a week. proving it is due to the fact that many Our legislature some years ago changed unemployed have drawn all their unemthat to 24 weeks at $30 a week, minimum ployment compensation. Because of this payment. That is the present rate of such people are not longer carried as рау.

unemployed, although in fact they are Mr. KEAN. But you still do not cover and, the unemployment compensation employers of less than eight, as most of payments have been reduced. But that our States do. We in New Jersey are now does not account for the fact that there down to 4 and a bill has passed the

is still unemployment and that the unAssembly for 1, and I am very much in employed have not returned to work. favor of 1; because a man who is the I am very much interested in lengthsole employee is just as much out of a job ening the number of weeks the payments

may be made. That is in the bill originally introduced by the gentleman from. Rhode Island and of which I am one of the co-sponsors, but it will not be in the two proposals he intends to offer today to the legislation.

I want to associate myself with the gentleman from Rhode Island, and I am sure that the Representatives from all of the States that are vitally affected, as my State of West Virginia is, are interested in bringing some relief to this serious situation.

Mr. COOPER. Mr. Chairman, I yield 7 minutes to the gentleman from Maryland [Mr. GARMATZ).

Mr. GARMATZ. Mr. Chairman, when the people of this country read in the newspapers that we are taking up and debating an unemployment compensation bill, I am sure they will be under the impression that we are actually doing something about the present inadequate benefits.

They will be in for a rude shock if they read down further in the account and see what it is we are actually taking up.

In Baltimore, as in most cities, the people generally know we are in a situation of unemployment crisis. In Baltimore, for instance, we have twice as many people on the unemployment compensation rolls in the city alone as there were last year in the whole State of Maryland. And the Baltimore Sun reported Tuesday that the number of jobs in Baltimore City fell off 2,700 more from April to May, contrary to the usual seasonal upswing.

In other words, instead of unemployment dropping in that period, as it usually does, we saw it increase.

With all of our joblessness, and idle plant capacity, and virtually closeddown shipyards and other installations, however, we in Baltimore are not as badly off as are many of the other major industrial areas of the Nation which recently went on the distressed list. So we can only imagine the extent of the crisis in cities with 6 or 12 or even a higher percentage of unemployment.

And bad as the situation is nationally, we have the forecast from the National Planning Association that if the economy continues at its present level without substantial change or improvement, we shall have anywhere from 5.5 to 6.2 million unemployed in the country by next spring.

This will mean nearly a doubling of present unemployment. And the present level of unemployment has already been described by the Chairman of the President's Council of Economic Ad. visers, Dr. Arthur Burns, as intolerable. It is hard to find the right adjective to describe a situation twice as bad as intolerable.

Under the circumstances, Mr. Chairman, it is obvious that the administration and the Congress should be taking powerful corrective steps. But nothing of the sort has been undertaken.

Instead, we have here a bill which purports to improve the unemployment compensation system, but an analysis of it will show that it will have practically no effect whatsoever in Maryland or in many other States.

It would cover in under the unemploy. I said, it is understandable. To open

I said, it is understandable. To open employment level for the Nation's labor rement compensation program workers in up this bill to general amendment from sources at that time. But population growth businesses employing four or more per- the floor would expose its weaknesses and increased use of more productive masons. In Maryland, and in many other and limitations and show up the inade- chinery raised the full-employment level by

the first quarter of this year to an annual States, we already do at least that well- quacy of the administration's approach national production rate of $375 billion, in Maryland we cover in all employees to the unemployment problem.

NPA said. otherwise eligible, regardless of the There is nothing dynamic about this That left a $17 billion gap in January, number their employer has on the pay- bill. It is a bust.

February, and March, the report said, beroll. So that will have no effect in

[From the Baltimore Sun of July 4, 1954]

tween what the Nation was producing and Maryland.

what it should produce to utilize its labor The bill will also cover in Federal em


NEXT YEAR-PLANNING GROUP URGES GOV- NPA calculated that at the present rate ployees. That is an improvement I

ERNMENT TO ACT TO END INEXCUSABLE of increase in economic activity, national heartily support and which I urged upon


production in the first quarter of next year the Ways and Means Committee in my

WASHINGTON, July 3.—The National Plan- would be at an annual rate of about $360 testimony on this matter last month.

ning Association said today unemployment billion. The full employment level of ecoBut the bill as it has been reported will nearly double over the next year at the

nomic activity by then, the committee said, and under the rule it cannot be amended present rate of economic activity. It urged

It urged would be $385 billion, leaving a $25 billion from the floor in this particular-speci- the Government to consider action to end gap. fies that unemployment compensation inexcusable idleness of part of the Nation's

Virtually standing still economically, the

committee said, would boost unemployment cannot be paid to jobless Federal em

gigantic production machine.

The report said that if the economy runs

next year from the 3,305,000, or about 5 perployees until after next December 31.

along over the next 12 months at about the cent of the labor force, to about 8 or 9 pertrust that most of the slashing of Fed

present pace of $25 billion gap will develop cent of the labor force. Colm told a news eral agencies has already taken place

between national production and the level conference on the report that an addition and that most of the employees slated of production that would provide full em- of about 1 million to the labor force could to lose their jobs have already done so ployment.

be expected during the year. The commitby now, so that this, too, would have no


tee was, therefore, estimating that, if the effect right now and probably very little

economy remains at virtually the present The study group, a private association of

level over the next 12 months, unemployeffect after January 1. businessmen, labor union leaders, econo

ment would rise by next spring to between Otherwise, the bill does nothing for mists, and bankers, said it assumes the ad

5,500,000 and 6,200,000. any worker in Maryland. It does not ministration is now reexamining defense The committee attributed the recent reraise benefits for a single unemployed needs.

cession to the failure of private demand to worker.

If this reexamination shows (as we anIt does not increase the period ticipate)," the association said, "that na

rise in accord with the rise in productive of benefits. tional security calls for bigger defense spending and business spending for expansion be

capacity at a time when Government spendSo I would describe this bill, Mr. ing, a special session of Congress in the fall

gan to level off. Chairman, as a garden hose to use on could consider legislative authorizations and

The committee pronounced itself unfit to a three-alarm fire. The unemployment supplemental appropriations for the addi

pass on defense needs or national strategy. situation is dangerously acute; yet this tional measures."

But, it said, unless four questions it posed

If the administration decides there is no bill is of no significant value in comurgent need for stepped-up defense spend- outlays should be stepped up. And, the com

could all be answered “yes” it felt security bating it or in alleviating the hardships

ing, the group said, "then measures should of unemployment. be considered to promote expansion" of the

mittee said, "with actual production runThe Republican leadership here in the

ning about $15 billion below capacity and economy to "full employment" levels.

with some idle resources in men, plants, and House must be painfully aware of the


materials, it simply makes no sense to conpitiful limitations of this measure to have

The report was entitled “Opportunities for tend that national defense programs must brought it up here under the circumEconomic Expansion.” It was signed by in

be reduced for economic reasons." stances it provided for House debate. ternational banker, H. Christian Sonne,

Administration spokesmen say frequently We have in effect a gag rule—no amend- chairman of NPA's steering committee and that they are trying to reduce defense spendments except two intended to be offered chairman of the board of Amsinck, Sonne & ing to avoid putting an undue strain on the for the Democrats by the gentleman Co.; and by the 10 other members of the economy. from Rhode Island, Representative FOR- steering committee. These included Frank

Mr. GARMATZ. Mr. Chairman, I ask Altschul, chairman of the board of General AND, One would extend the maximum American Investors Co.; Soloman Barkin, di

unanimous consent to revise and extend period of benefits to 26 weeks—which is rector of research of the Textile Workers my remarks at this point in the RECORD, what we already have in Maryland. The

Union of America; Clinton S. Golden, execu- and include an article. other would increase maximum benefits tive director of the trade-union program at The CHAIRMAN. Is there objection to one-half a worker's regular pay, up Harvard University; marketing adviser, Elmo to the request of the gentleman from to a limit of two-thirds of a State's aver- Roper; and New York businessman-econo

Maryland? age weekly wage. In Maryland, this mist, Beardsley Ruml, author of the pay-as

There was no objection. would mean an increase in the top basic you-earn income-tax collection plan now in use. Another signer was Gerard Colm, econo

Mr. REED of New New York. Mr. benefit of about $11 a week—from $30 mist for NPA.

Chairman, I yield 4 minutes to the to about $41.

Administration economic advisers asked gentleman from Kansas [Mr. REES). Only the second amendment would for comment on the report made no re- Mr. REES of Kansas. Mr. Chairman, help unemployed Marylanders. I shall, sponse.

I take this time, if I may, to propound of course, support both amendments, The IPA, which periodically brings out 2 or 3 questions in respect to this probecause I believe all States should be studies on the national economy, based its

posed legislation, particularly with rebrought up to at least the 26-week current report on the assertion that "it is certain we do not have 'maximum employ

gard to the Federal employees. As I standard. I would like to go further and ment, production, and purchasing power,'

understand this legislation, you are putsee the maximum period increased to 39

stated as an objective of United States policy ting about 2.5 million Government emweeks. in the Employment Act of 1946."

ployees under this law that have never That was one of the many additional "Involuntary total or partial idleness of a been covered before. Is that correct? improvements proposed in the Forand substantial number of workers and under- Mr. REED of New York. That is corbill, which I and more than four-score utilization of productive capacity," the re- rect. other House Democrats joined in co

port said, "are inexcusable in a perilous Mr. REES of Kansas. What are we sponsoring. But under the rule imposed world situation.”

going to do with Federal employees who upon us for consideration of this bill,


work for short periods of time? Supwe cannot even propose that amendment NPA said that the business downturn pose someone is employed in my office from the floor. which started last midyear-which NPA said

or anywhere else in the Federal GovernI object to this kind of gag rule on has apparently run its course-reduced the

ment and works for 2 or 3 or 4 up to 6 so important a legislative issue, affectNation's total annual production of goods

months. Does he come under this law and services from the $367 billion of 1953 to a ing so many American workers. It is rate of $358 billion in the first quarter of this

and does he get any benefits under it? unfortunate that the Republican lead- year. The $367 billion gross national pro

Mr. REED of New York. If he is out

, ership has imposed such a gag, but as duction of last year, NPA said, was the full of employment.

Mr. REES of Kansas. How do you Mr. Chairman, we have no more re- be cut, it is understood, 3313 percent. figure out how much you are going to quests for time.

If that takes place, and I want my colpay him?

Mr. COOPER. Mr. Chairman, I yield leagues from Michigan on the RepubMr. REED of New York. Well, it is 10 minutes to the gentleman from lican side to listen to me, it is going covered by the State law. Under the bill Michigan [Mr. RABAUT).

to put on the unemployment rolls in the Federal workers' benefits are deter

Mr. RABAUT. Mr. Chairman, I take Michigan alone 300,000 people. It is well mined under the unemployment-com- this time to make it known that I am

enough for the people here in the House pensation law of the State where they in favor of the amendments to be offered to say this is a state problem. We had were last employed.

by the gentleman from Rhode Island a governor that grabbed the ball with Mr. REES of Kansas. In other words, [Mr. FORAND). I understand that the

the President of the United States, and if someone who comes from the State of first amendment is to fix nationwide the

he is a Democratic governor, G. Mennen Ohio works for me in my office and bebenefits to be paid the unemployed; the

Williams, in the State of Michigan, and comes unemployed, what becomes of maximum to be 6623 percent of the State

he went down the field for a goal. But him?

average weekly wage and the minimum when the Republican legislature of our Mr. REED of New York. The bill does not less than 50 percent of the individual

State acted they used an eyedropper not apply to elective legislative officers. worker's weekly wage. The second when it came to putting some more Mr. REES of Kansas. If a person who amendment is to fix the duration of

funds in the compensation bill. A $3 worked for the War Department, who benefits at 26 weeks.

increase, that is what they gave. Three came from Ohio, became unemployed, he

There is nothing new in these amend

dollars in a man's family life in the econwould possibly then get different comments of the gentleman from Rhode Is

omy of today is something that does not pensation than if he came from New land [Mr. FORAND], so far as the admin

need much explanation to anybody in York; is that right?

this House who deals with the money istration is concerned, because we had it Mr. REED of New York. No. That on the President's own testimony, in the

problems of this country. would be based on the law of the District Economic Report, where it says:

The legislatures of several States have of Columbia.

met, but only three have acted-Vir

Unemployment insurance is a valuable Mr. REES of Kansas. Because he was

ginia, California, and Michigan Michfirst line of defense against recession. * employed in the District of Columbia? But even as a first defense, the system needs

igan has done the best by her unemMr. REED of New York. That is right. reinforcement.

ployed, but it was not enough. We have Mr. REES of Kansas. Even though

the record in my own State-providing

Among specific he worked for the Federal Government?

under proposals,

a 26-week period—but there is a jigger Mr. REED of New York. That is right. "Benefits" it says further:

in it—requiring that work be performed Mr. REES of Kansas. The fact that

It is suggested that the States raise these for 39 weeks in the current year. I do he worked in the District of Columbia

dollar maximums so that the payments to not know how they are figuring the determines the question of compensation equai at least half their regular earnings. the great majority of the beneficiaries may

short week period in that 39 weeks for that he gets?

several of the big industries of MichMr. REED of New York. That is the Further, as to “Duration,” it specifies igan are on a 3-day short week, . criterion. 26 weeks.

Mr. EBERHARTER. Mr. Chairman, Mr. BYRNES of Wisconsin. Mr. The Secretary of Labor in the Repub- will the gentleman yield? Chairman, if the gentleman will yield, lican administration, Mr. Mitchell, in his Mr. RABAUT. I yield to the gentleI think it might be made clear to the letter to the State Governors under date man from Pennsylvania. gentleman from Kansas that it depends of February 16, said, on the subject of Mr. EBERHARTER. I noticed an on where the Federal employee is work- benefits:

item in one of the newspapers in Washing. The employee that came from

At its most recent meeting in January

ington yesterday where a survey was Kansas, let us say, and worked for the the Federal Advisory Council on Employment made of the dealers in the automobile Federal Government here in Washington Security took action supporting the Presi- industry throughout the country and it would be paid on the basis of the Dis- dent's recommendations on improving weekly was the consensus that the dealers rectrict of Columbia unemployment com

benefits. The Council recommended that ommended to the producers a further pensation law, but if that same em

in each State, the maximum weekly benefit reduction in the production of automoployee went from Kansas to Wisconsin percent of the State's average weekly wage.

amount should be equal to at least 60 to 67 biles; so evidently the dealers are overand was employed in Wisoonsin, let us

stocked now with too great an invensay, in the Veterans' Administration of- With reference to duration he recom- tory, so we can look for further reducfice there and then became unemployed, mended the same period, 26 weeks. tions. he would get his unemployment com- The Assistant Secretary of Labor, Mr. Mr. RABAUT. I thank the gentlepensation on the basis of the Wisconsin Ciciliano, in a letter to the heads of man for bringing that to my attention. law.

the State unemployment compensation. Auto production in the second half of Mr. REES of Kansas. As. I under- agencies, dated February 16, said: the year will be at least 3313 percent stand the chairman of the committee, As also pointed out in the letter to your

below the present rate. The new-car then, a person who works in a congres- Governor a recent recommendation of the inventory was 638,000 as of May 31 comsional office or legislative office is not Federal Advisory Council, in line with the parted to 430,000 as of the same date in included under this act. Is that right? President's Economic Report, suggests as a

1953. Mr. REED of New York. He is in

ceiling on weekly benefits that weekly maxi- Do the Members of this House who cluded unless he is an elected official. mums be equal to 60 to 67 percent of the

are going out in the fall to give an acState's average weekly wage. Mr. REES of Kansas. Are there other

counting of their stewardship intend to exceptions for Federal employees?

As to the matter of duration, he makes use the television so they will be away Mr. REED of New York. There are the same recommendation, 26 weeks. from the voters while they make their minor exceptions.

When the President was asked what appeal, or do they intend to dress themMr. REES of Kansas. Otherwise, they he intended to do about advising the selves up with a mask and a chest proare all included ?

governors in the matter of calling the tector of a baseball outfit to walk Mr. REED of New York. Yes.

State legislatures into session to imple- among the people? This is going to be Mr. REES of Kansas. The 2.5 million ment his own recommended program, he serious. The automobile business is the Government employees?

said that he had no intention to urge largest business in this country. Mr. Mr. REED of New York. Yes.

them. He said he did not think he would Fairless and Mr. Grace, of the steel inMr. REES of Kansas. Wherever they do it. Now he is going to meet with dustry, say that they are optimistic, are?

the governors in July. He made this that the 72 percent production of today Mr. REED of New York. Yes.

statement in his press release, I think will continue. How is it going to conMr. REES of Kansas. Whether in the it was on June 16. Now the country

Now the country tinue with this fall-off that was anUnited States or in foreign countries has an announcement from the first in- nounced by the automobile industry, the as well?

dustry in the United States of America, cutback of 3313 percent? The auto inMr. REED of New York. That is right the automobile industry, that in the sec- dustry is the best steel customer in the but the worker cannot file for benefits ond half of this year they intend to cut

ond half of this year they intend to cut United States of America and no one unless he is in the United States.

production, that production is going to denies that

Mr. EBERHARTER. Mr. Chairman, .fense contracts, and by the general Mr. EBERHARTER. Mr. Chairman, will the gentleman yield?

slump in fabricating industries which I yield 5 minutes to the gentleman from Mr. RABAUT. I yield.

the whole country is experiencing. Kansas [Mr. MILLER). Mr. EBERHARTER. I remarked be- Mr. Chairman, a year ago my district Mr. MILLER of Kansas. Mr. Chairfore that today steel production is only was still economically healthy. Some in- man, I come from a district and a State 59 percent of capacity. A few years ago dustries were experiencing economic that will not be so greatly concerned at is was 100 percent production.

hardship, but employment was high. In the present time with the provisions of Mr. RABAUT. You know we get these this past year there has been a drop in this bill. But as I have listened to the figures. They are handed to us and we factory employment of 10 percent. The arguments it occurred to me that we are are supposed to take them. We take worst information that can come to a doing nothing in the way of prevention. them for what they are worth, but the district like mine is that the United When some years ago it was permissible figure was given to me that steel pro- States Department of Labor has declared to mention China without any apologies, duction is running 72 percent of capacity. it a so-called group IV area. Reading we heard that over there they had nothIf it is lower than that, the result is was classified group IV in May. The ing but preventive medicine. They hired going to be worse.

designation "group IV” means that over physicians to keep them well rather than Do not think when I speak to you, 7 percent of the total nonagricultural to make them well. I am wondering ladies and gentlemen of the House, that work force is out of jobs and looking for whether our economic situation does not I am addressing only the people in Mich- work. It signifies an area of substantial need some preventive medicine rather igan. The automobile has affected every labor surplus. The Department of Labor than curative medicine, such as we are section of America. It is important to has no classification which signifies discussing today. your district. You know it as well as I greater hardship.

There seems to be at the present time do. It is time we did something here These are more than mere statistics. considerable unemployment, and there until these State legislatures act. It is Behind the figures are thousands of seems to be fear that it will become time we took charge of the situation. It families whose income has been cut by worse. In this Nation where there is so has been recommended by a Republi- two-thirds or three-fourths or more. much to do, it seems this Congress is can President. It has been written about They represent husbands and wives and taking the attitude that all we can do by a Republican Secretary of Labor. It children who do not know whether they when a man is out of a job is to pay him has been encouraged to the State unem- can meet the next rent payment, who until he can find a job of similar kind ployment compensation agencies by the know that if illness strikes, they cannot in similar employment. That is all we Assistant Secretary of Labor. Why meet their medical expenses. The num- can do about it. should we not do something about it? ber of families who have been forced to I would like to ask the chairman of We ought to get behind this Forand

go on relief has increased, and as those the committee, the gentleman from New amendment; and if you do, you will be in this Chamber know, relief payments York [Mr. REED], if this bill contains assisting the unemployed and benefiting are far below the minimum requirements any provision by which pains are taken the economy of our Nation.

for a reasonable standard of living. to find jobs for these men rather than Mr. COOPER. Mr. Chairman, I yield The fall in the purchasing power of simply to pay them while they are out of 5 minutes to the gentleman from Vir- these people will be felt far beyond their work? ginia [Mr. SMITH).

own doorsteps, Mr. Chairman. The fact Mr. REED of New York. Let me tell Mr. SMITH of Virginia. Mr. Chair- that these people do not have money you something that I would like you to man, if I may have the attention of the

with which to buy the things they need relay to your people and tell everybody: gentleman from New York [Mr. REED]: will inevitably affect the small-business We have just sent a bill to conference in the colloquy which the gentleman men and farmers of the community. which, if it is passed, will greatly inrecently had with the gentleman from Then, it will further affect the adverse crease employment throughout the counKansas (Mr. REES] I understood the gen- employment situation in industries man try, and that is the bill H. R. 8300. Many tleman from New York to state that the ufacturing semidurable and durable telegrams and telephone calls are coming employees in the legislative branch of goods.

in to the office, the effect of which is that the Government were not included. I It is essential for the economic well- as soon as the House bill H. R. 8300 is wonder if that was an inadvertent state- being of my district, as well as for the passed we will put 10,000 people to work. ment.

whole country, that improvement be That is something that will help labor. Mr. REED of New York. That was an made in the unemployment insurance It is not in this bill; it is in that bill. inadvertent statement. Legislative em- benefits available to unemployed persons. Mr. MILLER of Kansas. I thank the ployees are covered by the bill. The There is nothing in the bill before us gentleman very much. I do not know exclusion which I had reference to is as which would meet this urgent need. The what the nature of that bill is, but I to elected officials.

amendments to be offered later today by have in mind personally some things that Mr. SMITH of Virginia. Then the em- the gentleman from Rhode Island [Mr. could be done. Not too many days ago ployees in the legislative branch are in- FORAND] would raise maximum primary we passed a bill through this House apcluded under the bill? I wonder if the benefits in Pennsylvania from $30 a week propriating a good many hundreds of gentleman would know how long they to $44 a week. This is a small enough

This is a small enough millions of dollars for soil conservation have to be in the employ of the Federal benefit for a man who has to live, who and flood control, but we made very little Government before they become eligible wants to work, but who cannot work provision for implementing such prounder the terms of the bill?

because no

no jobs are available. Mr. grams. That is the most important Mr. REED of New York. That depends Chairman, I shall support the Forand

Chairman, I shall support the Forand legislation that could possibly be before on the State law. amendments.

this House with the exception of immeMr. SMITH of Virginia. And as to Mr. BYRNE of Pennsylvania. Mr. diate national defense. those who are residents of the District Chairman, will the gentleman yield?

I introduced a bill into this body when of Columbia, it would depend upon the Mr. RHODES of Pennsylvania. I yield. I first came here over a year ago requestlaw of the District of Columbia ?

Mr. BYRNE of Pennsylvania. The ing that this House create a commission Mr. REED of New York. That is right. gentleman is aware that the State Un- under the direction of the President to

Mr. SMITH of Virginia. I thank the employment Compensation Commission study and provide a program of soil congentleman.

in Pennsylvania has issued an order, just servation so that at any time we have Mr. COOPER. Mr. Chairman, I yield last week, that they were going to cut

last week, that they were going to cut slack employment there will be a place 5 minutes to the gentleman from Penn- the relief from 26 weeks to 20 weeks, and to put these men to work where they will sylvania [Mr. RHODES).

the payments from $30 to $20. This be doing something for the good of the Mr. RHODES of Pennsylvania. Mr. amendment to be offered by Mr. FORAND country for all time. Chairman, the district I represent in- will take care of that, will it not?

I thank the Members for the attention cludes the city of Reading and the county

Mr. RHODES of Pennsylvania. It cer- you have given me and I hope that what of Berks in Pennsylvania. It is an indus- tainly will.

I have said here will remain in the minds trial area with a diversified economy, The CHAIRMAN. The time of the

The time of the of the present Congress, for I do assure but with its base in manufacturing. It gentleman from Pennsylvania has ex- you that we are rapidly losing the best has been badly hit by a decline in de- pired.

soil that we have in this country-400,

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