Mr. KNOX. I do. Senator MURRAY. Some witnesses who have been appearing before the committee have indicated that in their judgment the States can do a better job than the Federal Government can in this problem of unemployment. What have you to say about that? Mr. KNOX. Well, I think if the States feel that way, then they should also be prepared to take on the responsibility of taking care of the unemployment situation. In the State of California I know that neither my city nor county nor State is going to be able to take care of the unemployment situation that is rapidly developing now Eventually it is going to come back, as it has before, as a responsibility of the Federal Government. I doubt very much the statement that States are more capable of operating more efficiently than the Federal Government, by and large; and, as I pointed out before, the figures, the type of statistics that they develop, are not related to the other 47 States and therefore do not make a combined picture, a composite picture, to present to the Congress of the United States, and with which the Congress may deal intelligently with probably our greatest national problem. Senator MURRAY. Some of the witnesses who have been asking for an immediate return of the Employment Service to the States contend that their compensation commissions cannot run their program without control of the Employment Service. What do you think of that? Mr. KNOX. I didnt' understand. What commissions? Senator MURRAY. The unemployment-compensation commission in the different States. They say that they need the control of the Employment Service in order to efficiently operate their unemploymentcompensation programs. Mr. KNOX. Well, I think the inference would be there that the information that is coming out of the USES offices is either incorrect, undependable, or that the employment of people is not being honestly handled. I have never seen any example of that in the USES as it operates in my locality. Senator MURRAY. Studies are being made down in California with reference to the extent to which unemployment will mount, and I have heard some figures stated that they may have many hundreds of thousands of unemployed in California sometime in the near future, in the entire State of California. Mr. KNOX. I think that is true. I think it is true now. And I think we are just beginning to feel the effects. I believe, Mr. Chairman, that within 6 months California will have an unemployment situation far worse than that which she experienced in 1934. Senator MURRAY. Worse than in 1934? Mr. KNOX. Yes, sir. I see no possibility of avoiding that. It should be borne in mind that California is not an industrial State. Its only industries employing large numbers of people have been war-born industries that have now been terminated or are being terminated. I have seen no industry replacing completely, on a reconversion or shall I say on a conversion basis, those industries which employed those thousands and hundreds of thousands. Senator MURRAY. And they will be cut down completely? Mr. KNOX. Yes. 80856-46-pt. 2—11 Senator MURRAY. And there are no prospects of getting big industries there that would to any degree, any substantial degree, provide employment-no big industries? Mr. KNOX. Well, I don't know whether I could say that there is no possibility of that Senator MURRAY (interposing). Well, there is no present indication. Mr. KNOX. There is no present outlook. I think eventually some industries are going to have to be resettled on the west coast, if we are going to allow people to remain there. Senator MURRAY. And efforts are being made now, of course, to interest small plants to settle in California, and a great many have. Mr. KNOX. That is right. Senator MURRAY. In recent months a great many have indicated an intention to establish plants there. Mr. KNOX. Yes, sir. Senator MURRAY. But that is a long process. Mr. KNOX. Yes; it is an attempt to bring in small, diversified industry that can soak up some of this surplus labor that is now available in the California market. Senator MURRAY. Would you think that the situation is such, as it appears now in California, that it will require Federal administration of this employment program? Mr. KNOX. I think it would be suicide to do anything else. Mr. KNOX. Because the information-I am sorry you got in late, sir Senator CHAVEZ (interposing). Yes; I am, too. Mr. KNOX. The information on what is happening in California is related to what is happening in the other 47 States. As I pointed out earlier in my testimony, California is only one State, and we probably will have the greatest number of unemployed in proportion to our population of any State in the Union; we probably have now, and we will have even a greater percentage as time progresses. It comes back to the point that if we are going to have a State employment service, totally divorced from the Federal Government and the other 47 States involved, then the States should be prepared to take the full responsibility of employment, which I positively know they cannot do. Senator CHAVEZ. Now, approaching the matter from a different point of view, I am a little concerned, in turning the Employment Service back to the States, as to the permeation of the political angle locally. I know that the average State would mean to do the right thing; but I am afraid that politics will creep in if you leave it to the local responsibility in carrying out the functions of getting people employed, those who are not at the moment employed, and feel that the Federal Government can keep away from political considerations more so than the local people. Have you any views on that? Mr. KNOX. Well, I would say that the States do not have a monopoly on politics, sir; that the National Government also has some political obstacles in many of the things they want to do. But I think the removal of control from local ward-heelers, local politicians, and so forth, on a thing as vital to the welfare of this country as unemployment, is worth while. I believe it takes much of the politics out of the situation, the local politics, and much of the skulduggery out of the situation, and that has existed in the past, where you had to know somebody before you got preference for a job. I think the Federal Government, by and large, is less responsive to localized pressure than are local levels of government at the local level. Senator MURRAY. I think that is all the questions I have to ask, unless you have some more questions, Senator. Senator CHAVEZ. I have none. Senator MURRAY. Thank you, Mr. Mayor, for your statement. Senator MURRAY. The subcommittee will recess, subject to call. call.) UNITED STATES EMPLOYMENT SERVICE TUESDAY, MARCH 19, 1946 UNITED STATES SENATE, SUBCOMMITTEE OF THE COMMITTEE ON EDUCATION AND LABOR, Washington, D. C. The subcommittee met, pursuant to call, at 10 a. m., in room 424, Senate Office Building, Senator James M. Tunnell (chairman), presiding. Present: Senators Tunnell (chairman), Ball, and Guffey. Mr. Williamson, will you give your name and position to the reporter. STATEMENT OF JOHN C. WILLIAMSON, ASSISTANT LEGISLATIVE REPRESENTATIVE OF THE VETERANS OF FOREIGN WARS OF THE UNITED STATES Mr. WILLIAMSON. My name is John C. Williamson, assistant legislative representative of the Veterans of Foreign Wars. Mr. Chairman, gentlemen of the committee, on behalf of the Veterans of Foreign Wars, I wish to express our appreciation for this opportunity of testifying in regard to the bills now pending on the proposed transfer of public employment offices to State control. The Veterans of Foreign Wars is an old organization, but 90 percent of its 1,600,000 members are World War II veterans. As a veterans organization we are not concerned with the question of ultimate State or Federal control of public employment offices, however, we are greatly concerned with the prospect of a diminution or deterioration of service to millions of unemployed veterans during the reconversion emergency. The facts are relatively simple and lead, in our opinion, to an inescapable conclusion. First the facts: (a) At the present time over 1,500,000 veterans are drawing readjustment allowances in accordance with the Servicemen's Readjustment Act of 1944. These veterans have registered with the USES which places a great responsibility on that Service to find them suitable jobs. (b) In addition it is estimated that of the veterans already released from service over 2,000,000 have not as yet entered the labor market. These figures will increase as demobilization progresses. (c) Over 40 percent of World War II veterans were not in gainful employment prior to induction or enlistment. Of the remainder, many have acquired new skills and will seek new fields of employ |