Mr. DERRICKSON (reading): Hon. CARL ELLIOTT, GOVERNMENT OF AMERICAN SAMOA, OFFICE OF THE GOVERNOR, Pago Pago, American Samoa, February 2, 1956. Committee on Education and Labor, Washington 25, D. C. DEAR MR. ELLIOTT: In conformity with your request at the conference in your office on January 26, I am submitting some additional facts which I hope will be helpful to your committee and to the Congress in considering an amendment to the Fair Labor Standards Act which will exempt American Samoa from its provisions. As pointed out to you, the Honorable Orme Lewis, then Assistant Secretary of Interior, addressed a letter dated July 1, 1955, to the Honorable Graham Barden, chairman of the Education and Labor Committee of the House of Representatives, in which he advised that the Department of the Interior favored legislation which would provide some exemption from this law. He stated that, "Because the economic and social structure is so different from other areas, any justification for protective labor legislation in American Samoa should be cast in entirely different terms." He contrasted Samoa with other Territories and pointed out that the Department of Interior "would favor eliminating American Samoa from the provisions of the proposed minimum-wage legislation and would recommend instead that legislation be enacted which would authorize the Secretary of Labor, when he finds that economic conditions warrant, to establish minimum wages for workers in American Samoa. In the absence of a determination by the Secretary of Labor, the existing statutory minimum wage would not apply. The Secretary of Labor would also be authorized to make reasonable variations and exemption from the maximum-hour and childlabor provisions of the act." This letter, in its entirety, was incorporated into the hearings before the committee on proposed legislation to increase the minimum wage and will be found at pages 1179-1180 of the hearings. I also discussed with you the report of a Special Committee on Territory and Insular Affairs made by Congressman Wayne N. Aspinall, pursuant to House Resolution 89 of the 83d Congress. This report points out that the total land area of American Samoa is 76 square miles of which only 20 percent is considered arable. The 7 islands constituting American Samoa are about 8,000 miles from Washington. They are very inaccessible, and at the present time there is only one plane a month scheduled into American Samoa. Infrequent steamer calls supplement the limited air service. There are approximately 22,500 native people on the islands and the population is increasing very rapidly (46.7 percent in the decade from 1940 to 1950). There are only about 100 continental Americans now living in the islands, the government being operated mostly by native Samoans. The total payroll for personnel service amounts to a little over $700,000 annually. The pay rate on the islands was established after the Department of the Interior caused a survey to be made by Research Associates, a business and consulting firm of Honolulu. This firm proposed a classification and pay plan for the government of American Samoa with a proposed merit system, tailored to meet the needs of the people and the government, which was put into effect April 1, 1952. This has worked most satisfactorily. With only 10 percent of the adults employed for wages by either the Government, the Van Camp Seafood Co., or local merchants the average annual wage for technical, skilled or unskilled labor runs about $700, or less than $60 a month. Since 80 percent of the land is volcanic mountain area and not arable, it is necessary, in developing the economy of the islands, to induce industry to come in and to train the natives in industrial skills. The first industry established in the islands is the Van Camp Seafood Co., Inc., which now employees over 300 native Samonans. This has meant a great deal to the islands. The Van Camp Seafood Co. pays wages equivalent to those which the government of American Samoa pays to its employes. It is evident, however, that the company could not pay the American standard of wages because of the disruption to the entire local economy. At the same time, in our endeavor to build up the economy of the islands and find work for the rapidly increasing population, we have found no other industries interested until some exemption from the Fair Labor Standards Act is provided. One of the concomitant contributions of the Van Camp Seafood Co. has been in making available low-priced fresh fish for the inhabitants. The diet of the Samoans was deficient in protein, but the large supply of fresh fish has relieved this deficiency, and has contributed to lowering the incidence of tuberculosis among our people. Every effort is being made to make the Territory as self-sufficient as possible, but the rapidly increasing population together with the small amount of arable land makes it essential that we find more and more industrial employment, and to utilize such natural and human resources as are available to us. Industrial incentives must be made available if we are to meet this problem effectively. The main commodity which is readily available is that of labor in an area which is surrounded by the territories of other nations, all of whom have pay standards well below the minimums in the United States. In this regard, the legislature of American Samoa passed a resolution requesting the exemption of the Territory from the Fair Labor Standards Act, and it is reproduced on pages 1181 and 1182 of the hearing of your committee for the 1st session of the present Congress. I should like to point out, too, that any attempt to enforce the minimum wages paid to industry, provided any industry would remain in the Territory, would make it necessary for the Congress to appropriate at least another million dollars to maintain the government of American Samoa, because all wages would have to be raised proportionate to that paid to the unskilled laborer. Let me make it clear, however, that we should look forward to a gradually increased wage scale. Some day the Territory may be ready for the minimum wages applicable within the United States, but when that day will be is anybody's guess. Certainly it is not today. Another point I should like to bring to your attention is the smallness of our labor market in relation to that of the United States. If all the adults who could work were employed, the total number would not exceed over 5,000 or 6,000 people. While the employment of these people is extremely important to their economy, it will be only a fraction of a drop in a bucket as it relates to the United States and its internal production. In other words, helping us will not hurt anyone else, and we feel that we should have the same opportunities to develop our economy, small as we are, in the same way that the Congress has provided for exemptions in Puerto Rico and the Virgin Islands. I sincerely appreciate your personal interest and hope that this Congress at an early date will enact some legislation which will exempt American Samoa from the Fair Labor Standards Act. Only in this way can we hope to provide the necessary incentive to maintain our present industry and encourage the operation of others, and thereby promote the economy of the Territory. Very sincerely yours, Mr. ELLIOTT. Thank you very much. RICHARD BARRETT LOWE, Governor of American Samoa. In this connection and while we are placing these things in the record, I would like to offer that letter plus this next letter of February 2, 1956, from Richard Barrett Lowe, Governor of American Samoa, in which he says to me: Following my conference with you in regard to exempting American Samoa from the Fair Labor Standards Act I sent a telegram to Dr. Felix M. Keesing asking him for his viewpoint on the subject. His letter is attached and I hope it may be made part of the record. Dr. Keesing is executive head of the department of sociology and anthropology, Stanford University. He is senior United States Commissioner on the South Pacific Commission with over 30 years experience in the field of anthropology; especially that which deals with underdeveloped areas. He is author of Modern Samoa and The South Seas in the Modern World and a number of other books and articles. I am sure that you, the members of your committee and other Members of the Congress will appreciate the views presented by Dr. Keesing. I offer the letter which I have just read to become a part of the record, and I would like to ask our clerk, Mr. Fred Hussey, if he would read into the record the letter of Professor Keesing, executive head of 73588-56-pt. 1-7 the department of sociology and anthropology, Stanford University, the letter being addressed to Gov. R. B. Lowe, dated January 31, 1956. Mr. Hussey? Mr. HUSSEY (reading): Governor R. B. LOWE, STANFORD, UNIVERSITY, Stanford, Calif., January 31, 1956. Care of Office of Territories, Department of the Interior, Washington, D. C'. DEAR GOVERNOR LOWE: As a scientific observer of American Samoan affairs over a period of more than a quarter century, I am opposed most strongly to the sudden and arbitrary extension of the Fair Labor Standards Act to the Samoan population of this overseas United States territory. Ever since these South Pacific islands and people came under United States control in 1898 the local wage scale has adjusted itself to realistic conditions there and in the surrounding island territories. The economy is greatly different from that of the United States mainland, or even of Hawaii and Guam, which are highly developed commercially. There is no resident white population living on wages. The indigenous Samoans use money only selectively, as for limited store purchases, miniscule taxes, or church contributions. For the most part their economy is a subsistence one of tropical roots and fruits, and of marine products. Money comes mainly from producing copra and from handicrafts. Wage earning is likely to be erratic, when the need for money arises. To have wages suddenly go up to a level appropriate to United States mainland conditions, where people's whole economic maintenance and status depends on the wage scale, would throw this small economy drastically out of gear. Wage earning in American Samoa is primarily a matter of Government employment. For wages to rise will increase correspondingly the already very heavy subsidy which the Federal Government contributes annually to this territorial administration for welfare and development. Furthermore, the one major commercial source of wage employment, a private fish cannery, which is important for current economic stability, may be forced out of its competitive marketing advantage if mainland wages have to be paid. In general, hopes of making the territory more self-supporting through further selective industrial development will be negated. Neighboring South Pacific territories controlled by the United Kingdom, France, New Zealand, and other metropolitan powers also have wage scales historically adjusted to local island conditions. Wage levels are particularly responsive to the fact that the island labor force is everywhere almost wholly untrained, casual, and at a very low level of work productivity by Western standards. To introduce arbitrarily a mainland wage scale in American Samoa would have unfortunate repercussions upon these other territories and so upon our national friends and allies. It would tend to breed discontent among the peoples in these neighboring islands and complicate problems of trusteeship and welfare. Most immediately concerned here is the neighboring section of Samoa which is a United Nations territory administered by New Zealand. Western Samoans visit and often work in American Samoa and vice versa. A mainland wage scale in American Samoa would throw this ethnic and historical relation very much out of gear. The wage scale issue is part of a larger political problem, that of relations between Samoan leaders and the United States executive and Congress. Samoans, while thoroughly loyal American nationals, are exceedingly sensitive to any action by the executive and Congress without full consultation in the manner familiar by Samoan custom. They are particularly fearful of arbitrary actions which threaten or upset their traditional economic and social order. For this reason they have asked since 1950 that no organic legislation be introduced by the Congress without their full consent. Persons familiar with the South Pacific know that Samoa has a long history of disturbance which can still rise to the surface when the Samoan stake appears to the people to be threatened. Introduction of the mainland wage scale, putting much larger amounts of money especially into the hands of younger individuals, could be a sudden undermining force to the Samoan economic and social system, and so endanger what otherwise would be an orderly longer term adjustment to the Western way of life. This would likewise have political repercussions. Political disturbances in such an overseas territory reflect on the good name of the United States and open the way to deleterious international criticisms of American administrative policies. What has been said here does not mean that wage scales in Samoa should remain indefinitely at their present low level in terms of mainland standards. Upward adjustments can properly come, as the Samoan people fit themselves more fully to the money economy. At the proper time, stateside legislation such as the Fair Labor Standards Act can then be extended to this Territory. Sincerely yours, FELIX M. KEESING, Executive Head. Mr. ELLIOTT. Without objection, the three letters which have been read will become a part of the record of these hearings. Mr. Roosevelt, a member of the committee, has a question that he would like to ask, or several questions he would like to propound to Mr. Arnold or Mr. Yeomans. Mr. Roosevelt. Mr. ROOSEVELT. Mr. Arnold or Mr. Yeomans, whichever prefers to answer this, this is for my information because I am not a lawyer. What is the legal position of the Van Camp Co. at the present time with relationship to the Fair Labor Standards Act? Are they not subject to it at the present time? Not having been exempted, have they not technically at least been in violation of it? Mr. ARNOLD. That is our understanding of it, Mr. Roosevelt; yes. Mr. ROOSEVELT. Let me put another question along the same line. If a worker in the Van Camp operation wished to file suit to recover wages under that act, what would his position be as a national? Where would his suit be filed? I understand most of them are women. Mr. ARNOLD. That is a question that never occurred to us before. They are nationals. There is a district court there. It is the only court of jurisdiction. It is not a part of the Federal court system, however. Maybe Mr. Yeomans has some thoughts on that. Mr. YEOMANS. No, sir, I am afraid I cannot help you out. Theirs is purely a local court system. The nearest Federal jurisdiction, I suppose, is in Hawaii. Mr. ROOSEVELT. Does a national have rights as a citizen to sue in a Federal court? I mean could a national down there file suit in Hawaii, for instance? Mr. YEOMANS. I am sorry, I am not a lawyer, sir. I can't answer that. Mr. ROOSEVELT. The reason that to me is important is that it becomes obvious that the company is going to have an increased liability or potential liability if something is not done about this situation, and it is something that might become very, very serious to them because there is back pay for 300 people piling up here. That is why I wanted to know. If they are subject to suit and this legislation is not passed, certainly if I were the company I would not stay there 5 minutes with that hanging over my head. Will you find out for me what the position of the company legally is in relation to a suit by an American national filed in Hawaii or filed in the local district court there? Mr. ARNOLD. Yes, sir. To the best of my ability, I will try to get that information for you for the record. (The information referred to is as follows:) UNITED STATES DEPARTMENT OF THE INTERIOR, OFFICE OF TERRITORIES, Hon. CARL ELLIOTT, Washington 25, D. C. MY DEAR MR. ELLIOTT: At the February 17 hearings of the Subcommittee of the Committee on Education and Labor on modification of the application of the Fair Labor Standards Act to American Samoa, Congressman James Roosevelt inquired as to what recourse a Samoan employee of the cannery operating in American Samoa would have if he wished to seek legal enforcement of the minimum wage provisions of the Fair Labor Standards Act. Since I was unable to supply an answer to this question at the hearing, the information set forth below is provided for the record. Sections 16 (b) and (c) of the Fair Labor Standards Act confer upon “any court of competent jurisdiction" authority with respect to employees' actions for unpaid minimum wages and unpaid overtime compensation and with respect to actions of the Administrator of the Wage and Hour Division (29 U. S. C., secs. 216 (b) and (c)). It seems probable that the High Court of American Samoa would constitute a "court of competent jurisdiction" for the purposes of such sections. Additionally, injunction proceedings under section 17 of the act would be available to a Samoan if he were in a position to bring action in any of the courts outside of Samoa referred to in section 17. Sincerely yours, WILLIAM A. ARNOLD, Assistant Director for Insular Affairs. I would like to say, however, that I do not believe that the Department of the Interior should be considered as being in a position of responsibility for any violations that may have occurred out there. The government of American Samoa has leased some physical properties to these people. But I do not believe that there could be any legal determination that in doing so we assumed any responsibility for what wages they were going to pay to their employes, Mr. Roosevelt. Mr. ROOSEVELT. What you are saying makes it even worse for the company because you are refusing to take any responsibility for it, and therefore it is all the company's responsibility unless the Congress does something to relieve them of it. Mr. ARNOLD. Perhaps so. I do think if there is any responsibility from the Federal Government it would be in the Department of Labor rather than in the Department of the Interior, however. Mr. ROOSEVELT. Why? Because of the enforcement of the wageand-hour law? Mr. ARNOLD. Yes, sir. Mr. ROOSEVELT. In other words, if there was any responsibility they should have notified you that you had a responsibility that any lessee must pay the wage required by law. Mr. ARNOLD. I presume so, yes, sir. Mr. ROOSEVELT. What is the position of the Government as to paying wages under the wage-and-hour law? For instance, do you have a legal right, in your opinion, to pay less than the wage-and-hour law demands in areas that are not exempted by it? Mr. ARNOLD. Certainly. The Government of American Samoa would not be subject to the Fair Labor Standards Act, would it, Mr. Roosevelt? Mr. ROOSEVELT. I don't know. I am asking you. Mr. ARNOLD. No, it would not. |