NATIONAL HOUSING AGENCY, Hon. JAMES M. TUNNELL, United States Senate. DEAR SENATOR TUNNELL: I appreciate your request for my views on the provisions of S. 1510 as they relate to the veterans' emergency housing program. I have examined the bill carefully and I find myself in agreement with its principles. Manpower requirements for the housing program, coupled with the manpower needed for other essential construction, will require full utilization of our resources of construction labor. We have established a goal of 2,700,000 houses for veterans before the end of 1947. While this objective is sufficient only to prevent a critical situation from growing worse, it nevertheless requires production of housing at a rate never before attained in this country. The task of mobilizing our labor resources to do this job will challenge the Government labor agencies as well as contractors and unions. We must more than treble the labor force now engaged in producing materials and constructing homes. The United States Employment Service is the Government agency which will be relied upon to carry the major responsibility for recruiting these workers. As I recently indicated in a letter to the Honorable Lewis B. Schwellenbach, Secretary of Labor, "The USES has an important contribution to make through its facilities for channeling the existing supply of labor into the construction industry, and for conducting recruitment drives to get new workers and former building workers back on the construction jobs and in the material plants. Adequate arrangements must be made for clearance between labor market areas, so that local shortages of labor do not delay scheduled construction in one area while there is unemployment of construction workers in another. This type of clearance must be, however, carefully balanced with construction requirements so that we do not create a second shortage in solving the first." The USES, through its Nation-wide facilities, is well equipped to meet this challenging task. Its personnel has had a great deal of experience in recruitment in precisely this sphere of activity. The housing program will require a concerted and sustained drive for building workers throughout the country in 1946 and 1947. The housing program is an emergency program. The USES will undoubtedly have to use emergency techniques in recruiting the necessary workers. In this connection, it would be unfortunate if that agency had to sacrifice its present momentum by reason of the adjustments and delays that would be entailed in a transition from Federal operations to State operations during the early life of the housing program. At this critical stage in the housing program, it would seem clear that the essential labor recruitment activities incident to the program could be more effectively performed by the USES as a going Federal agency than by a system of 48 separate State agencies. It is my hope, therefore, that the USES will remain under Federal operation at least until June 30, 1947. Sincerely yours, WILSON W. WYATT, Administrator. For other Federal Government officials' opinion see also statements of Gen. Omar N. Bradley, Administrator of Veterans' Affairs, page 293, and Robert C. Goodwin, Director, United States Employment Service, page 299; also see part I, hearing on S. 1456 and S. 1510 on November 13, 15, and 16, 1945, statements of Hon. Lewis B. Schwellenbach, Secretary of Labor, pages 15-19; Robert C. Goodwin, Director, United States Employment Service, pages 19-31; Hon. Henry A. Wallace, Secretary of Commerce, pages 33-38; Hon. Arthur J. Altmeyer, Chairman, Social Security Board, pages 55-56. GOVERNORS AND OTHER STATE OFFICIALS GOVERNORS' CONFERENCE, Chicago 37, Ill., February 5, 1946. Senator JAMES E. MURRAY, Chairman, Senate Committee on Education and Labor, Senate Office Building, Washington, D. C. MY DEAR SENATOR: The Governors' Conference at its annual meeting at Mackinac Island on July 4, 1945, adopted unanimously a resolution urging the immediate return of the employment service to the States, and directed the executive committee of the Governors' Conference to take all possible steps to that end. The House of Representatives has recently enacted H. R. 4437 which provides for the return of the Employment Service to the States by not later than June 30, 1946, as they were loaned to the Federal Government in December 1941. The executive committee of the Governors' Conference urges prompt and favorable consideration by your committee of this bill. We are attaching for the information of your committee resolution unanimously passed by the Governors' Conference at its annual meeting in Hershey, Pa., on May 31, 1944; resolution unanimously adopted by the Governors' Conference at its annual meeting at Mackinac Island, Mich., July 4, 1945; and statement by the executive committee dealing with the return of the Employment Service to the States. Very sincerely, EDWARD MARTIN, Governor of Pennsylvania, Chairman, Governors' Conference. RESOLUTION ADOPTED BY THE GOVERNORS' CONFERENCE, THIRTY-SIXTH ANNUAL MEETING, HERSHEY, PA., MAY 31, 1944 Whereas in the grave crisis confronting these United States immediately following Pearl Harbor, the President asked the Governors of the several States to transfer their respective employment services to Federal control in order to "utilize to the fullest possible extent all of the manpower and womanpower of this country to increase the production of war materials"; and Whereas in accordance with the President's request, the Governors, in a willing spirit of complete cooperation with the war effort, acted at once to effect such transfer of State property, records, and personal as was called for, although this involved a considerable sacrifice to State interests and to the efficient administration of other State programs, especially the employment-security program; and Whereas it was the stated assumption of the Governors that this transfer was made as a temporary loan to be terminated with the passing of the emergency which prompted the President's request; and Whereas the Congress of the United States has, in appropriations for the United States Employment Service, recognized that the employment service facilities of the States would be returned to them after the war emergency; and Whereas it is generally agreed that as the present war approaches a final conclusion there will be a gradual reduction of war production and likewise a gradual resumption of civilian production; and Whereas following the period of maximum war production, the tremendous task or readjusting to civilian economy will make necessary State control of their employment services, unless they are to be seriously handicapped (1) in handling unemployment compensation claim loads, possibly of large proportions, which cannot feasibly and legally be done except through State control of the servicing of job orders and job placements; and (2) in developmental planning to alleviate the impact of transitional unemployment, in which the States are now engaged; and Whereas except possibly in a war emergency, when stringent Federal controls over the labor market might be urged as necessary, State administration of the job placement function is more desirable (1) since local employers and workers will more completely give their voluntary cooperation, which is essential in any really effective job placement program; and (2) since it permits a better adaption of policy and procedures to the widely varying industrial and labor conditions of the country, while making adequate provision for interstate job clearances: Therefore be it Resolved, That as soon as practicable, the employment services shall be immediately returned to their respective States; be it further Resolved, That the executive committee be and is directed to keep in close touch with this situation, and if between now and the next annual meeting it is the opinion of the executive committee that the time has arrived when it would be practicable for the employment services to be returned to the States, that the executive committee is hereby authorized and directed so to notify the President of the United States; be it further Resolved, That the Governors direct their employment security administrators to make such plans as are necessary for resuming control of employment service functions in their respective States at the time designated in this resolution. RESOLUTION ADOPTED BY THE GOVERNORS' CONFERENCE, THIRTY-SEVENTH ANNUAL MEETING, MACKINAW ISLAND, MICH., JULY 4, 1945 Whereas the President of the United States more than 3 years ago requested the Governors of the several States, as an emergency measure, to loan their employment offices to the National Government in order to facilitate the fullest use of all of our manpower for war; and Whereas the Governors of all the States agreed to this emergency measure, with the understanding that at the proper time the employment offices would be returned to the States; and Whereas all realize that the problem of employment can be handled effectively only through the integration of the employment services with State unemployment compensation systems in a single agency; and Whereas in many areas of the country we have an increasing degree of reconversion unemployment, primarily as a result of cutbacks in war production; and Whereas the Director of the Office of War Mobilization and Reconversion has just stated that the drop in munitions production will be rapid from now on and will be accomplished by increases in unemployment: Now, therefore, be it Resolved, That in order to insure the development of the most effective plans to meet an unemployment problem which is already upon us and which will increase with the transition of industry from war to peace, the employment services should be returned to the States as soon as effective arrangements for such transfer can be made; and be it further Resolved, That the executive committee of the Governors' Conference be directed to urge the immediate return of the Employment Service to the States and to take all possible steps to that end. It is agreed by the Federal Government and the States that the administration of the Employment Service should be returned to the States. The only questions involved are when the Employment Service should be returned to the States and how such a transfer can be effctuated. Our governmental experience over a period of many years has demonstrated that cooperative governmental services can best be administered in accordance with a pattern involving national policy, over-all national program, and State administration and operation. This American pattern has operated effectively in the past. It will meet our problems now. The Governors' Conference at its annual meeting in July 1945, unanimously urged the immediate return of the Employment Service to the States. (1) Workers in the reconversion period will be best served if the Employment Service is returned to the States promptly so that an integrated employment security program may be in full operation. It is significant to note that when the States responded to the President's appeal immediately following the declaration of war the transfer of the Employment Service to the Federal Government was effected in 11 days. The prompt transfer will not result in the disruption of the activities of the Employment Service, but on the contrary will increase its efficiency and effectiveness at a time when it is most needed. Workers and employers will be benefited greatly if we are permitted to establish a placement service integrated with the unemployment compensation programs which will be administered as closely as possible to all of the people to be served. (2) Although many causes of unemployment are national in character, and even international in scope, the matching of men and jobs, which is the function of an Employment Service, is a local operation that can be accomplished more effectively when done locally. Voluntary cooperation of employers, employees, and public agencies is necessary to accomplish the objectives of the Employment Service. Such voluntary cooperation, it is generally agreed, can best be attained through the prompt return of the Employment Service to the States. (3) Because unemployment compensation and employment services are inseparable parts of a single, coordinated employment security program, neither of the two can operate efficiently when the policies of each are formulated at different levels. Experience establishes that fact. Only by unified administration and planning can the staff of both services be best utilized to meet our present problems, which require constant reevaluation of the emphasis to be placed on the various aspects of the unified program. Reintegration of the Employment Service and unemployment compensation program will insure the rapid transfer of workers to peacetime employment and prompt payment of unemployment compensation to those workers who are not immediately placed in jobs, thus assisting in a smooth transition to a peacetime economy. (4) The prompt return of the Employment Service to the States will in no way impede the solution of the problem resulting from concentration of transient workers in war production centers and the consequent necessity of direction of such workers to places where employment is available. This problem has existed in the past, and provision is made therefor in the Wagner-Peyser Act, which requires as a condition to the receipt of Federal funds by a State, approval of its plans for cooperation with the United States Employment Service, whose duty it is "to assist in coordinating the public employment offices throughout the country and in increasing their usefulness by developing and prescribing minimum standards of efficiency, assisting them in meeting problems peculiar to their localities, promoting uniformity in their administrative and statistical procedure, furnishing and publishing information as to opportunities for employment and other information of value in the operation of the system, and maintaining a system for clearing labor between the several States." (5) It is agreed that the first and foremost obligation of our country is to insure employment for our returning veterans. Federal laws now in effect provide stimulation and safeguards toward this objective and machinery for effectuating this objective through the Federal-State pattern. At the time the Employment Service was transferred to the Federal Government, the United States Employment Service maintained a Veterans' Placement Service devoted to securing employment for veterans, pursuant to the WagnerPeyser Act. This service was expanded by the Servicemen's Readjustment Act of 1944 through the creation of a Veterans' Placement Service Board consisting of the Administrator of Veterans' Affairs as Chairman, the Director of the National Selective Service System, and the person having the responsibility for administering the functions of the United States Employment Service. Pursuant to this act, a veterans' employment representative is assigned to the public employment service in each State and to the local employment offices in the States. The act provides that the veterans' placement representative "shall be administratively responsible to the Board, through its executive secretary, for the execution of the Board's veterans' placement policies through the public employment service in the State. In cooperation with the public employment service staff in the State he shall: (a) be functionally responsible for the supervision of the registration of veterans in local employment offices for suitable types of employment and for placement of veterans in employment; (b) assist in securing and maintaining current information as to the various types of available employment in public works and private industry or business; (c) promote the interest of employers in employing veterans; (d) maintain regular contact with employers and veterans' organizations with a view of keeping employers advised of veterans available for employment and veterans advised of opportunities for employment; and (e) assist in every possible way in improving working conditions and the advancement of employment of veterans." It is thus apparent that under existing law, employment service to the veteran will continue uninterrupted without regard to whether the Employment Service is operated by the Federal or State Government; in addition, such service, because of its administration at the local level, will serve the veterans more efficiently in the finding of jobs. Title V of the Servicemen's Readjustment Act of 1944 now provides for the payment of unemployment insurance to returning veterans through the States, and the reasons heretofore given for an integrated employment security program would dictate the advisability with equal validity of maintaining integration of unemployment compensation and employinent services as they serve the veteran. This transfer can be made promptly in the manner provided by H. R. 4437, now pending before your committee: (1) The United States Employment Service is now decentralized on a basis that coincides with State boundaries. Consequently, all that is necessary is to reassign the administrative responsibility to the States as provided in H. R. 4437 and to reintegrate this Service with the State unemployment compensation programs. (2) Further as provided by H. R. 4437, the United States Employment Service personnel will be accepted by the States as the employment service personnel of the States. By virtue of this fact, this transfer can be made with equity to present employees and without disruption of service. (3) In view of the fact that the personnel charged with the servicing of veterans, under the Servicemen's Readjustment Act of 1944, is specifically assigned to the States, the transfer of the United States Employment Service to the States will have no effect upon the servicing of veterans. (4) Fiscal considerations present no impediment to the prompt return of the employment service to the States. H. R. 4437 contains necessary provisions for financing the employment service program under State operation. The problems of peace are going to require the same unity, the same cooperation and oneness of purpose, and the same statesmanship among our people as the problems of war. These are essential requirements if we are to solve our domestic problems and if peace is to be maintained throughout the world. Toward these objectives the States pledge their full cooperation, and we are convinced that the recommendations made herein will contribute materially to these ends. Hon. CHARLES C. GOSSETT, United States Senate, Washington, D. C. STATE OF IDAHO, DEAR SENATOR GOSSETT: There is pending in the Senate certain legislation in which the State of Idaho is vitally interested. This legislation affects directly a large number of employers of what was formerly the Idaho State Employment Service, and is now the United States Employment Service. Many of the people working in this service have been in the organization as long as 12 years and many of them are World War veterans of the First World War as well as the most recent war. Before the war the Idaho State Employment Service operated under standards and regulations, which included a merit system for personnel, set forth by what was known as the Wagner-Peyser Act. This act did a great deal to build up a beneficial and worth-while service. During the war, and because of the emergency, the State service was transferred to the United States Employment Service. Personnel were protected in this transfer and of course standards remained the same. Now there is a considerable movement to return the Service to the States. There was presented in the House a bill known as the Ramspeck bill (H. R. 4437). This bill was good as originally introduced, but failed to pass the House. In January of this year a new bill, also known as H. R. 4437 was passed by the House, but this bill is substantially like H. R. 5142 by Dirksen, of Illinois, which does not maintain the standards nor protect the personnel as we think they should be protected in a transfer and as was contemplated in the first H. R. 4437. The foregoing is dangerous to the Service and many Senators are apt to mistake the second H. R. 4437 for the first, in these matters. Many people figure the only difference is the time element, that is, the date of the return of the Service to State control; this is not the fact, as the second bill destroys the standards and personnel protection which has been maintained in the Service since 1933 (48 Stat. 113-117). We are anxious that you note these facts. You have before you the Murray bill, S. 1510, which is identical with the original Ramspeck bill. Again we call attention to the fact that this is not the present H. R. 4437. Those interested in these matters point out that the bill, S. 1510, would be the most beneficial to the State, not only from a personnel standpoint but from the standpoint of rendering the most beneficial service to the employers and persons |