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ing at the rate of some 1,000 daily. The National Highway Act of 1954 will bring its benefits to the Pacific States even as it will in other States. But this legislation is but a mere start in attacking the tremendous problem.

The American Federation of Labor is keenly aware that the fastgrowing population must be met with proper facilities in all respects, sanitation, education, all health methods, living space, housing and, definitely, transportation. Your own committee on a national highway program and the Committee on National Transportation and other groups working to a common end have full information on the needs involved.

The purpose of the present statement is to offer support for the general proposition and to express the American Federation of Labor's interest based upon convention action as of a few weeks ago.

For purposes of amending the bill, S. 1048, as suggested at the outset, I suggest language to be inserted at the appropriate place to include a section somewhat along the following lines:

Any State desiring to accept the benefits of this act shall submit, through its State agency, a State plan for carrying out the purposes of this act. Such State plan shall

(1) Provide that all laborers and mechanics employed by contractors or subcontractors on construction work performed on highway facilities projects approved under the plan shall be paid wages at rates not less than those prevailing on similar construction in the locality as determined by the Secretary of Labor in accordance with the Davis-Bacon Act, as amended (40 U. S. C. 276a-276a-5), and that every such employee shall receive compensation at a rate not less than 112 times his basic rate of pay for all bours worked in any workweek in excess of 8 hours in any workday or 40 hours in the workweek, as the case may be. The Secretary of Labor shall have, with respect to the labor standards specified in paragraph (10), the authority and functions set forth in Reorganization Plan No. 14 of 1950 (15 F. R. 3176; 64 Stat. 1267), and section 2 of the act of June 13, 1934, as amended (40

U. S. C. 276c). There is ample precedent for such provision. For example, last year in Public Law 519 (H. R. 6342) Congress enacted amendments to the Public Building Act of 1949 authorizing acquiring by the Federal Government of real estate through lease-purchase agreements and included the following language:

Sec. 207. (c) Except as provided by subsections (a) and (b) of this section, sections 3733, 3734, and 3736 of the Revised Statutes, as amended (40 U. S. C. 259; 41 U. S. C. 12, 14); section 1 of the act of March 3, 1877 (19 Stat. 370 ; 40 U. S. C. 34); and any other provision of law (except applicable labor standards provisions) relating to the acquisition or disposal of real property, construction of buildings, or leasing of space, shall not apply to any of the functions performed by the Postmaster General in effectuating the purposes of this title.

I call attention to the exhibits attached to this statement which include legislation relating to rates of wages for labor mechanics on public-building construction which was approved April 2, 1931, Pubsic Law 633 of the 76th Congress (S. 3650), approved June 15, 1940, Public Law 403 (S. 3303) of the 74th Congress approved August 30, 1935, and Public Law 321 (H. R. 8519) of the 74th Congress, August 24, 1935, any one of which may suggest themselves as having value in the field of labor laws applicable to the present legislation, S. 1048.

(The documents referred to are as follows:)

[Public-No. 321–74th Congress]

[H. R. 8519) AN ACT Requiring contracts for the construction, alteration, and repair of any public buiding or public work of the United States to be accompanied by a performance bond protecting the United States and by an additional bond for the protection of persons furnishins material and labor for the construction, alteration, or repair of said public buildings or public work

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That (a) before any contract, exceeding $2,000 in amount, for the construction, alteration, or repair of any public building or public work of the United States is awarded to any person, such person shall furnish to the United States the following bonds, which shall become binding upon the award of the contract to such person, who is hereinafter designated as "contractor":

(1) A performance bond with a surety or sureties satisfactory to the officer awarding such contracts, and in such amount as he shall deem adequate, for the protection of the United States.

(2) A payment bond with a surety or sureties satisfactory to such officer for the protection of all persons supplying labor and material in the prosecution of the work provided for in said contract for the use of each such person. Whenever the total amount payable by the terms of the contracts shall be not more than $1,000,000 the said payment bond shall be in a sum of one-half the total amount payable by the terms of the contract. Whenever the total amount payable by the terms of the contract shall be more than $1,000,000 and not more than $5,000,000, the said payment bond shall be in a sum of 40 per centum of the total amount payable by the terms of the contract.

Whenever the total amount payable by the terms of the contract shall be more than $5,000,000 the said payment bond shall be in the sum of $2,500,000.

(b) The contracting officer in respect of any contract is authorized to waive the requirement of a performance bond and payment bond for so much of the work under such contract as is to be performed in a foreign country if he finds that it is impracticable for the contractor to furnish such bonds.

(c) Nothing in this section shall be construed to limit the authority of any contracting officer to require a performance bond or other security in addition to those, or in cases other than the cases specified in subsection (a) of this section.

SEC, 2. (a) Every person who has furnished labor or material in the prosecution of the work provided for in such contract, in respect of which a payment bond is furnished under this Act and who has not been paid in full therefor before the expiration of a period of ninety days after the day on which the last of the labor was done or performed by him or material was furnished or supplied by him for which such claim is made, shall have the right to sue on such payment bond for the amount, or the balance thereof, unpaid at the time of institution of such suit and to prosecute said action to final execution and judg. ment for the sum or sums justly due him: Provided, howerer, That any person having direct contractual relationship with a subcontractor but no contractual relationship express or implied with the contractor furnishing said payment bond shall have a right of action upon the said payment bond upon giving written notice to said contractor within ninety days from the date on which such person did or performed the last of the labor or furnished or supplied the last of the material for which such claim is made, stating with substantial accuracy the amount claimed and the name of the party to whom the material was furnished or supplied or for whom the labor was done or performed. Such notice shall be served by mailing the same by registered mail, postage prepaid, in an envelop addressed to the contractor at any place he maintains an office or conducts bis business, or his residence, or in any manner in which the United States marshal of the district in which the public improvement is situated is authorized by law to serve summons.

(b) Every suit instituted under this section shall be brought in the name of the l'nited States for the use of the person suing, in the United States District Court for any district in which the contract was to be performed and executed

and not elsewhere, irrespective of the amount in controversy in such suit, but no such suit shall be commenced after the expiration of one year after the date

of final settlement of such contract. The United States shall not be liable for the payment of any costs or expenses of any such suit.

SEC. 3. The Comptroller General is authorized and directed to furnish, to any person making application therefor who submits an affidavit that he has supplied labor or materials for such work and payment therefor has not been made or that he is being sued on any such bond, a certified copy of such bond and the contract for which it was given, which copy shall be prima facie evidence of the contents, execution, and delivery of the original, and, in case final settlement of such contract has been made, a certified statement of the date of such settlement, which shall be conclusive as to such date upon the parties.

Applicants shall pay for such certified copies and certified statements such fees as the Comptroller General fixes to cover the cost of preparation thereof.

SEC. 4. The term “person" and the masculine pronoun as used throughout this Act shall include all persons whether individuals, associations, copartnerships, or corporations.

Sec. 5. This act shall take effect upon the expiration of sixty days after the date of its enactment, but shall not apply to any contract awarded pursuant to any invitation for bids issued on or before the date it takes effect, or to any person or bonds in respect of any such contract. The act entitled “An Act for the protection of persons furnishing materials and labor for the construction of public works," approved August 13, 1894, as amended (U. S. C., title 40, sec. 270), is repealed, except that such Act shall remain in force with respect to contracts for which invitations for bids have been issued on or before the date this Act takes effect, and to persons or bonds in respect of such contracts.

Approved, August 24, 1935.

PREVAILING RATE OF WAGE LAW

The following law provides that the prevailing rate of wages shall be paid in the construction, alteration, and repair of any public buildings of the United States and the District of Columbia :

"AN ACT relating to the rate of wages for laborers and mechanics employed on public

buildings of the United States and the District of Columbia by contractors and subcontractors, and for other purposes

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That every contract in excess of $5,000 in amount, to which the United States or the District of Columbia is a party, which requires or involves the employment of laborers or mechanics in the construction, alteration, and/or repair of any public buildings of the United States or the District of Columbia within the geographical limits of the States of the Union or the District of Columbia, shall contain a provision to the effect that the rate of wage for all laborers and mechanics employed by the contractor or any subcontractor on the public buildings covered by the contract shall be not less than the prevailing rate of wages for work of a similar nature in the city, town, village, or other civil division of the State in which the public buildings are located, or in the District of Columbia if the public buildings are located there, and a further provision that in case any dispute arises as to what are the prevailing rates of wages for work of a similar nature applicable to the contract which cannot be adjusted by the contracting officer, the matter shall be referred to the Secretary of Labor for determination and his decision thereon shall be conclusive on all parties to the contract: Provided, That in case of national emergency the President is authorized to suspend the provisions of this Act.

"SEC. 2. This Act shall take effect 30 days after its passage but shall not affect any contract then existing or any contract that may thereafter be entered into pursuant to invitations for bids that are outstanding at the time of the passage of this Act."

"Approved March 3, 1931."
This Act becomes effective April 2, 1931.

(Public-No. 633_76th Congress)

[Chapter 373, 3d Session]

[8. 3650]

AN ACT To require the payment of prevailing rates of wages on Federal public works in

Alaska and Hawaii Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 1 of the Act entitled "An Act relating to the rate of wages for laborers and mechanics employed on public buildings of the United States and the District of Columbia by contractors and subcontractors, and for other purposes," approved March 3, 1931 (46 Stat. 1494), as amended, is further amended by striking out the words “States of the Union or the District of Columbia" and inserting in lieu thereof “States of the Union, the Territory of Alaska, the Territory of Hawaii, or the District of Columbia"; and by striking out the words “or other civil subdivision of the State" and inserting in lieu thereof "or other civil subdivision of the State, or the Territory of Alaska, or the Territory of Hawaii.”

SEC. 2. The amendments made by this Act shall take effect on the thirtieth day after the date of enactment of this Act, but shall not affect any contract existence on such effective date or made thereafter pursuant to invitations for bids outstanding on the date of enactment of this Act.

Approved June 15, 1940.

[By Walsh--To Amend Davis-Bacon Act]

[Public-No. 403—74th Congress]

[S. 3303] AN ACT To amend the Act approved March 3, 1931, relating to the rate of wages for

laborers and mechanics employed by contractors and subcontractors on public buildings

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Act entitled "An Act relating to the rate of wages for laborers and mechanics employed on public buildings of the United States and the District of Columbia by contractors or subcontractors, and for other purposes," approved March 3, 1931, is amended to read as follows:

"That the advertised specifications for every contract in excess of $2.000; to which the United States or the District of Columbia is a party, for construction, alteration, and/or repair, including painting and decorating, of public buildings or public works of the United States or the District of Columbia within the geographical limits of the States of the Union or the District of Columbia, and which requires or involves the employment of mechanics and/or laborers shall contain a provision stating the minimum wages to be paid various classes of laborers and mechanics which shall be based upon the wages that will be determined by the Secretary of Labor to be prevailing for the corresponding classes of laborers and mechanics employed on projects of a character similar to the contract work in the city, town, village, or other civil subdivision of the State in which the work is to be performed, or in the District of Columbia if the work is to be performed there; and every contract based upon these specifications shall contain a stipulation that the contractor or his subcontractor shall pay all mechanics and laborers employed directly upon the site of the work, unconditionally and not less often than once a week, and without subsequent deduction or rebate on any account, the full amounts accrued at time of payment, computed at wage rates not less than those stated in the advertised specifications, regardless of any contractual relationship which may be alleged to exist between the contractor or subcontractor and such laborers and mechanics, and that the scale of wages to be paid shall be posted by the contractor in a prominent and easily accessible plate at the site of the work; and the further stipulation that there may be withheld from the contractor so much of accrued payments as may be considered necessary by the contracting officer to pay to laborers and mechanics employed by the contractor of any subcontractor on the work the difference between the rates of wages required by the contract to be paid laborers and mechanics on the work and the rates of wages received by such laborers and mechanics and not refunded to the contractor, subcontractors, or their agents.

"SEC. 2. Every contract within the scope of this Act shall contain the further

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provision that in the event it is found by the contracting officer that any laborer or mechanic employed by the contractor or any subcontractor directly on the site of the work covered by the contract has been or is being paid a rate of wages less than the rate of wages required by the contract to be paid as aforesaid, the Government may, by written notice to the contractor, terminate his right to proceed with the work or such part of the work as to which there has been a failure to pay said required wages and to prosecute the work to completion by contract or otherwise, and the contractor and his sureties shall be liable to the Government for any excess costs occasioned the Government thereby.

"Sec. 3. (a) The Comptroller General of the United States is hereby authorized and directed to pay directly to laborers and mechanics from any accrued pay. ments withheld under the terms of the contract any wages found to be due laborers and mechanics pursuant to this Act; and the Comptroller General of the United States is further authorized and is directed to distribute a list to all departments of the Government giving the names of persons or firms whom he has found to have disregarded their obligations to employees and subcontractors. No contract shall be awarded to the persons or firms appearing on this list or to any firm, corporation, partnership, or association in which such persons or firms have an interest until three years have elapsed from the date of publication of the list containing the names of such persons or firms.

“(b) If the accrued payments withheld under the terms of the contract, as aforesaid, are insufficient to reimburse all the laborers and mechanics with respect to whom there has been a failure to pay the wages required pursuant to this Act, such laborers and mechanics shall have the right of action and/or of intervention against the contractor and his sureties conferred by law upon persons furnishing labor or materials, and in such proceedings it shall be no defense that such laborers and mechanics accepted or agreed to accept less than the required rate of wages or voluntarily made refunds.

"SEC. 4. This Act shall not be construed to supersede or impair any authority otherwise granted by Federal law to provide for the establishment of specific wage rates.

“Sec. 5. This Act shall take effect thirty days after its passage, but shall not affect any contract then existing or any contract that may thereafter be entered into pursuant to invitations for bids that are outstanding at the time of the passage of this Act.

"Sec. 6. In the event of a national emergency the President is authorized to suspend the provisions of this Act.

"Sec. 7. The funds appropriated and made available by the Emergency Relief Appropriation Act of 1935 (Public Resolution Numbered 11, Seventy-fourth Congress) are hereby made available for the fiscal year ending June 30, 1936, to the Department of Labor for expenses of the administration of this Act." Approved, August 30, 1935.

Senator GORE. The committee would like for you to give us extemporaneously the highlights of the principal points of the statement.

Mr. Riley. There are two points. One, we recognize and urge the recognition universally of the tremendous necessity for bigger highways, longer highways, arterial, secondary, and all classes of highways. The acceptance which the new present superhighways have met shows very definitely the demand for such highways.

We are not concerned with the technical side of the financing, how it is done. I have not had the opportunity to analyze the President's program here because we have just received a copy this morning.

I have examined S. 1048 and find that it is in conformity with the accepted practice over the years, and it seems to be a very substantial approach to the problem.

Senator GORE. Thank you.

Mr. RILEY. I am informed on the provisions of the Fallon bill and the Buckley bill in the House which are designed to codify the road aid with a number of minor bills.

I have no particular desire to suggest to this committee how the financing should be done. It may well be that before a big program

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