(Kilgore) to incorporate S. 1718, Senator Murray's contract termination bill, and include provision of a section on industry councils. I will not comment on the titles on disposition of surplus property now found in both S. 1823 and S. 1730 (George), since I understand that these are both being given further study and will be revised extensively.

If Senator Murray sees fit to introduce such a comprehensive bill as I have described, we shall be pleased to support him and those colleagues who join with him in sponsoring it.

In closing, I want to add that we of organized labor are keenly aware that the maintenance of prosperity wage levels requires the resolute protection of the right to organize and bargain collectively. Real wages, moreover, require price control until such time as an abundance of goods becomes available. For many in the community all of the foregoing measures will not suffice. Insofar as the program I have presented fails to make all Americans continuously selfsupporting, there must be a comprehensive system of social security and public assistance, to protect everyone against the major hazards of life and to assure a steady flow of purchasing power from the beneficiaries.

I do not want to seem to suggest that all of these tasks must be accomplished by the legislation now before this committee. But I did want to try to convey to this committee our view that any legislation which may be passed here ought to be drafted with the larger problems of transition to the post-war world in mind.

Ours is a gigantic opportunity, and one which we can ill afford to let slip. There does not need to be a post-war slump in a world demanding such widespread reconstruction. The horizon of new building and equipment amounts to a new frontier, for a decade ahead. If we use that decade wisely we shall have a chance to consolidate our country firmly in an economy of abundance such as we did not imagine possible before the war. ;

To make good use of our opportunity we shall need the cooperative organization I have described. A production-employment board, a system of industry councils, and a bureau of programs will go far toward creating the machinery needed to do the job. The time to begin is now. There is no simple solution to our problem. It must be worked out by trial and error, in the day by day effort to maintain maximum war production while balancing up our employment and productivity by a transition to essential civilian production.

The members of this committee have a great opportunity to give the lead to Congress and the country by passage of legislation adequate to meet this enormous new problem. Organized labor pledges itself to support such a program vigorously and believes that it represents the demand of the overwhelming majority of Americans. The men and women in the armed forces, the workers in the war factories, the housewife who is maintaining the home front in these trying times all have their eyes fixed on the great new promise of America after the war. They ask only for the means to create a new post-war world. They know it is possible and they know the time to begin is now. The

knowledge that it is in the making will strengthen our whole war effort.

(By direction of Chairman Murray the committee print of Senator Kilgore's proposed bill to revise titles I and II of S. 1823 is inserted in the record at this place:)

PROPOSED REVISIONS OF TITLES I AND II OF S. 1823

A BILL To establish an Office of War Mobilization and Adjustment

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the "War Mobilization and Post-War Adjustment Act."

TITLE I

DEVELOPMENT AND EXECUTION OF WAR MOBILIZATION AND POST-WAR ADJUSTMENT

PROGRAMS

SEC. 101. The Congress hereby declares that the objectives of this Act are(a) to achieve the necessary war production which is indispensable to the speediest victory through the maximum mobilization and utilization of the Nation's natural and industrial resources and of the manpower not in the armed forces, and through the wartime stabilization of the civilian economy; (b) to insure that the great momentum of the war mobi.ization which is bringing victory to our arms will not be lost, but will be reconverted into a peacetime transition program providing for fuil production, full employ ment at adequate wages, and full consumption in a steadily expanding civilian economy with rising standards of living for all;

(c) to provide for the development of a unified program to secure the foregoing objectives, and the necessary coordination of the activities of the Federal agencies engaged in or concerned with production, procurement, distribution, or transportation of military or civilian supplies, materials, and products; economic stabilization; war production cut-backs; settlement of claims under terminated war contracts; disposition of surpius war property; resumption and expansion of civilian goods production; the training and placement of returning servicemen and civilian workers in war and peacetime industry and agriculture; and other programs affecting war mobilization and peacetime production and employment.

SEC. 102 (a) There is hereby established the Office of War Mobilization and Adjustment (hereinafter called the Office), at the head of which shall be the Director of War Mobilization and Adjustment. The Director shall be appointed by the President, with the advice and consent of the Senate, and shall receive compensation at the rate of $15,000 per annum.

(b) There is hereby established in the Office a Bureau of Programs headed by a Chief, who shall be appointed by the President, with the advice and consent of the Senate, and shall receive compensation at the rate of $12,000 per annum.

(e) The following administrations are hereby created within the Office of War Mobilization: (1) The Surplus Property Administration; (2) the Contract Termination Administration; (3) the Reemployment and Placement Administration. Each of these Administrations shall be headed by an Administrator, each of whom shall be appointed by the President, with the advice and consent of the Senate, and shall receive compensation at the rate of $12,000 per annum.

(d) The Director, the Chief of the Bureau of Programs, and the several Administrators, except as herein otherwise provided, may employ and fix the compensation and define the authority and duties of such officers and members, and may make such expenditures for supplies, facilities, and services as may be necessary to carry out the provisions of this Act. All appointments shall be made in accordance with the provisions of civil-service laws and regulations, and Classification Act of 1923, as amended, except that expert technical and professional personnel may be employed without regard to these laws and regulations where deemed desirable by the Director, the Assistant Director, and the several Administrators.

98534-44-pt. 1-3

SEC. 103. (a) It shall be the function of the Director, subject to the direction and control of the President

(1) to unify the programs and activities of Federal agencies engaged in or concerned with production, procurement, distribution, or transportation of military or civilian supplies, materials, and products; economic stabilization; war production cut-backs; settlement of claims under terminated war contracts; disposition of surplus wer property; resumption and expansion of civilian goods production; the training and placement of returning servicemen and civilian workers in war and peacetime industry and agriculture; and other programs affecting war mobilization and peacetime production and employment;

(2) to issue such directives on program, policy, and operations to the Federal agencies as may be necessary to carry out the programs developed and the policies established by the Office under this Act. It shall be the duty of all such agencies and departments to execute such directives, and to supply such data and make such progress reports to the Office as the Office may require.

(b) The Cffice may perform the functions, exercise the powers, authority, and discretion conferred on it by this Act through such officials and such agencies and in such manner as the Director may determine.

SEC. 104. It shall be the function of the Chief of the Program Bureau, subject to direction and control of the Director

(1) to review the programs of the several Federal agencies which are subject to the direction of the Office and to recommend to the Director such modifications as are deemed necessary to assure fulfillment of the objectives of this Act;

(2) to make periodic progress reports to the Director which shall assess current performance on approved programs;

(3) to require Government agencies performing functions under this Act to prepare such data and reports as are necessary to permit the review of the programs and the making of the progress reports required in this section; (4) to evaluate and report on current and projected public and private activities affecting war mobilization and peacetime full production and employment, and survey continuously the necessity for additional programs or legislation as will achieve the objectives of this Act. The surveys shall include (without being limited thereto) programs and measures for public works, housing, taxation, industrial and regional development, expansion of foreign trade, social security, and the maintenance of competitive enterprise;

(5) to consult and cooperate with State and local governments, industrial, labor, agricultural, and other groups (national and local) concerning the fulfillment of the objctives of the Act.

(b) The Office shall transmit to the Senate and House of Representatives within three months after the approval of this Act and thereafter at intervals not exceeding three months a summary of the progress reports, program reviews, surveys, and legislative and other recommendations prepared by the Bureau.

SEC. 105. (a) There is hereby created within the Office a National ProductionEmployment Board (hereinafter called the Board) consisting of three representatives of industry, three representatives of labor, three representatives of agriculture, and three representatives of the consuming public, who shall be appointed by the President: Provided, That each member of the Board may designate an alternate to sit and act for him. The Board shall elect a Chairman among its own members and shall by a majority vote of its members, determine its rules of procedure, except as otherwise defined by this Act, and the powers conferred on the Board by this section may be exercised by a majority vote.

(b) It shall be the general function of the Board, and each member individually, to endeavor to secure maximum cooperation and participation of the American people in the war mobilization and post-war adjustment, and to provide the Office with such advice and guidance as it deems will promote the objectives of this Act. The Board and each individual member thereof shall have full access to all information of the Office bearing on the effectiveness and adequacy of the operation of the Office.

(c) The Chief of the Bureau of Programs shall serve as the executive secretary of the Board. He shall prepare, under the direction of the Board, such reviews of programs, reports, and studies as the Board may request, and for these purposes shall exercise on behalf of the Board the full facilities of the Office and the powers conferred on the Office by this Act. The Board may make to the Congress, to the

Director, the several Administrators of the Office, and to other Federal officials performing functions subject to the direction of this Office, such recommendations relating to legislation, policy, and operations as it may deem necessary to fulfill the purposes of this Act. All such recommendations and all reports and studies issued by the Board shall be supplemented by such statements or comments as any individual member may wish included.

(d) The Director, the several Administrators of the Office, the Chairman of the War Production Board, and such other Federal officials performing functions subject to direction by the Office and as shall be designated by the Board, shell meet with it at least once a month and shall consult and advise with it on all basic policies and programs which are subject to direction by the Office; furthermore, they and their subordinates, with respect to the policies, programs, and operations affecting particularly industrial segments and areas, shail consult and advise with appropriate joint councils representative, for the particular area or industrial sexment, of industry, large and small, labor, and wherever appropriate, agriculture. All such industrial segment or area joint councils shall be appointed by the Director, with the advice and consent of the Board.

(e) All appointments of members or alternates to the Board and of members of the area and industry joint advisory councils, may be made without regard to any of the provisions of law with respect to the appointment and compensation of employees of the United States. Members and alternates of the Board and of the joint advisory councils shall serve without remuneration, except for per diem allowance not to exceed $25 each day spent in the actual performance of duty, plus traveling and other expenses incurred while so engaged.

(f) The Office shall provide for the Board an adequate technical and clerical staff which shall serve under its immediate supervision. The Director shall appoint, with the advice and consent of the consumer representatives, a consumer's counsel who shall, together with such staff as he may need, serve under the supervision of the consumer representatives in providing the Board with full information on the effect of current and projected programs and policies on consumer interests. Senator MURRAY. Would you care to ask Mr. Murray any questions, Senator George?

Senator GEORGE. I was not here when Mr. Murray commenced with his statement. I was very glad to hear what I have heard up to now. Senator MURRAY. I think it is a splendid statement.

Of course, we all agree that the great task ahead of us is this problem of maintaining full employment. I note you made some reference in your prepared statement to the possibility of a guaranteed weekly and annual wage.

To what extent do you think that could be carried out in the postwar period? Do you think the basic industries of the United States could, if they desired, plan their production in such a fashion as to enable them to introduce a system of annual wages?

Mr. MURRAY. I do, Senator Murray. Of course, we do not want compulsory legislation to that effect. We are asking the CongressSenator MURRAY. You do recognize it is a most desirable thing? Mr. MURRAY. That is right.

Senator MURRAY. And you believe it is something that is possible to accomplish.

I understand that there are a great many industries in the country that have adopted that system and are now maintaining annual payments, annual employment for their workers. I believe there are something like 30 or 40 corporations in the country that are on that basis.

It seems to me that if it were possible for the basic industries of the country to follow that system it would constitute a tremendous force in preventing the development of unemployment and depressions in the country.

Mr. MURRAY. Well, Mr. Chairman, I believe that we have the type of economy here in the United States that makes possible the attainment of the guaranteed weekly and annual income. It is a problem. of planning.

I might, with your indulgence, endeavor to explain our chief reason, and I now refer to the steel workers particularly who have advanced the idea in the steel industry which is now before the members of the National War Labor Board in our steel case.

The annual wage is not new, it is not unique, it is not original here. It has been adopted in other countries. Only a few weeks ago the British Government in collaboration with the owners of the coalmining industry perfected an arrangement to guarantee a weekly and annual income to the coal miners of Great Britain over a 4-year period. There are a few corporations in the United States, small, not large, who have advanced the idea and who have been experimenting with it with a considerable degree of success.

Senator MURRAY. I recall we had some hearings back in 1938, at which there were a number of witnesses and among them labor representatives who presented this question.

Mr. MURRAY. Our own Congress, in recognition of the needs of the American farmers, has constructed the legislation and has developed procedures out of this legislation which give to the farmers of the United States guaranties, beginning with the present guaranty of parity plus and the further guaranty under the provisions of the Emergency Price Control Act, that their standards shall never drop below the so-called 90 percent of parity.

I am.

I suppose Senator George is more familiar with what has been done to assist American industry through our present tax legislation than But I have taken advantage of the opportunity to glance into the methods employed with reference to the protecting of the interests of American industry in the so-called carry-back and carry-forward provisions of the present tax laws. It is extremely illuminating to note that the corporate interests of the United States are entitled to refunds from the Federal Treasury to protect the financial stability of their corporate structure against all possible danger that may confront them during any 2-year period, either during the war or at the end of the war.

I could best illustrate how the interest of American business is protected under that arrangement by offering an example as to how the present tax laws operate to give a guaranteed income to American business and enterprise. To do so I will resort to the use of our steel brief, which is now before the National War Labor Board. I am only putting this into the record for the purposes of illustration so that the committee itself might understand that there is nothing new or unique in the demands of labor that it be given a guaranteed income because the principle has been already established, partially, at least, as it applies to farmers, and very substantially as it applies to the corporate interests of the United States under our 1942 tax law.

Let us say, for example, that we take an outstanding corporation such as the United States Steel, and that its average net earnings after taxes for the period 1936 to 1939-and that was the peacetime periodlet us say the net earnings were $44,732,000, which they actually were. Let us follow through and see how the tax laws operate to protect the interests of that corporation, when it operates below the so-called