have not been subject to the jurisdiction of the Wage Stabilization Board. Excluding the railroad workers, the largest independent union is the United Mine Workers, which has clearly indicated that it is unwilling to participate in wage stabilization. The only sizable group of independent unions remaining is the bloc which was ejected from the CIO as Communist-dominated. There are also a number of small independent unions with varying, and to some extent inconsistent, interests. It would be difficult to select an adequate representative of these interests. The amendment may be based on the assumption that there is conflict of interest between representatives of organizations affiliated with the AFL and the CIO, and representatives of other unions, so far as wage stabilization is concerned. There is no such conflict of interests. If a wage increase is disapproved for unorganized workers or for workers who belong to an independent union, the basis for the disapproval may become a precedent for cases involving affiliated workers. Moreover, the labor members, like the other members of the Board, have taken oaths as public officers to serve the public interest. No evidence has been cited suggesting that they have violated their oaths in the past or might do so in the future. B. PRESENT PROCEDURES The Board has established a top-level office, under the direct supervision of a public member of the Board, the sole responsibility of which is to assist independent unions. And Board Resolution 28 has declared that Board policy is "to afford equal treatment to employers and employees in the processing of their cases, regardless of affiliation or nonaffiliation with particular organizations** *" The record of the Board has been fully consistent with this policy. CONCLUSION In the absence of hearings and reports on the Dirksen amendment, there is no way of ascertaining the reasons which prompted its proposal. On the record, there is no evidence that independent unions have been treated unfairly, that the tripartite structure of the Board is defective, and that either the wage stabilization or the dispute functions have not been properly fulfilled by the Board. Probably, the arguments which will be offered in support of the Dirksen amendment this year will be the same as those offered in support of the Lucas amendment last year. Nothing has happened in the last year to add validity to those arguments. (Whereupon, at 4 p. m., the committee proceeded to other business.) DEFENSE PRODUCTION ACT AMENDMENTS OF 1952 TUESDAY, MAY 13, 1952 UNITED STATES SENATE, COMMITTEE ON BANKING AND CURRENCY, Washington, D. C. The committee met, pursuant to call, at 10:30 a. m., room 301, Senate Office Building, Senator Burnet R. Maybank, chairman, presiding. Present: Senators Maybank, Fulbright, Robertson, Frear, Douglas, Benton, Moody, Capehart, Bricker, Ives, Schoeppel, and Dirksen. The CHAIRMAN. The hearing will be in order. The committee will hear testimony first this morning from our colleague, Senator Fulbright. Senator, you may proceed in your own way. Senator FULBRIGHT. Thank you, Mr. Chairman. STATEMENT OF J. W. FULBRIGHT, A UNITED STATES SENATOR FROM THE STATE OF ARKANSAS Senator FULBRIGHT. I do not think we put into the record the pertinent part of these proposed new regulations that will go into effect July 1. They have been published in the Federal Register. The CHAIRMAN. Without objection, the proposed rules to be placed in effect will appear in the record at this point. Senator FULBRIGHT. I do not see any use in putting it all in. I have marked the parts pertinent to this amendment for the reporter. The CHAIRMAN. Those parts will be printed in the record. Parts of sections 201.1 and 201.5. (The information referred to follows:) (2) It is expressly agreed and understood that where the contractor, pursuant to such relaxation, enters into any arrangement with a secondary contractor for manufacture or supply of the contract commodities, or materials or parts to be used in the performance of the contract, the contractor is charged with the duty of obtaining compliance by the secondary contractor with the requirements of these stipulations to the same extent as if he performed the work himself and he shall be liable for any failure by the secondary contractor to observe the requirements of such stipulations; except that this undertaking by the contractor is not applicable where the secondary contractor is an "auxiliary supplier" within the meaning of § 201.5 (c) of the Public Contracts Act Regulations (41 CFR 201.5 (c).) (b) Minimum wage. All persons employed by the contractor (or by a secondary contractor as permitted under stipulation (a) hereof) in the manufacture or furnishing of the materials, supplies, articles, or equipment used in the performance of the contract will be paid, without subsequent deduction or rebate on any account, not less than the minimum wages as determined by the Secretary of Labor to be the prevailing minimum wage for persons employed on similar work or in the particular or similar industries or groups of industries currently operating in |