State organizations are similarly governed through annual conventions and State officers and board elected by them. County and local organizations usually elect their officers and governing boards twice each year.

MEMBERSHIP OF THE WORKERS ALLIANCE

At the time of the last annual convention in September 1938 our records showed that a total of 166,020 members had been enrolled in the first 8 months of that year which together with the 114,462 enrolled during the previous year would represent an enrollment of 280,482. This membership was distributed between a total of 1,521 locals which were in turn distributed in 1,037 cities or towns of 543 counties in 45 States, in the District of Columbia and in Puerto Rico. Since that time and up until the 31st of March, we have enrolled a total of 94,620 members, making our present total enrollment 260,640, and have chartered 538 additional locals. 566 locals are still in the process of rechartering. Therefore, at present, we have 1,499 chartered locals in 663 counties in 46 States and in the District of Columbia.

The largest organizations are in the following States where we have chartered State organizations: California, Colorado, Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Montana, New Jersey, New York, Ohio, Oregon, Pennsylvania, Wisconsin, and Washington.

DUES, INITIATION FEES, PER CAPITA

The national organization does not attempt to fix the dues of the members of the various State, county, and local organizations. These are fixed by the members directly in their local meetings and bylaws or by the county and in a few instances State legislative bodies. Our national constitution does, however, attempt to guide the basic policy with respect to the membership fees by fixing a minimum of 10 cents and a maximum of 35 cents for unemployed members and a minimum of 15 cents and a maximum of $1 monthly for employed members. Similar limitations are imposed under our constitution for initiation fees which may not be less than 15 cents nor more than $1 and which are deemed to include the dues for the first month. The principle governing our membership fees is that our organization must be self-supporting in order that it may be free of obligations to any but the membership which democratically governs it, and yet must take into account the economic handicap of those who seek the protection of such an organization as ours is. For this reason, the membership is left free to determine for itself, within the necessary limitations, the amount of financial obligation it will assume. The higher dues prevail only in a few isolated localities and groups. Thirty-five and fifty cents are the most usual common monthly dues.

Because of the economic status of our membership large numbers of them are always in arrears. This is reflected in the records of our monthly dues payments which show that the average monthly dues payments are equal to only from 20 to 25 percent of our actual membership. In consideration for the economic status of our members it is the policy of our organization to extend the privileges of membership to those who seek such privileges even though they

might be disqualified by rigid adherence to the formal requirements for regular dues payment.

Of the dues or membership fees paid to the local, the national organization has, until March 1 of this year, received 2 cents per month per capita in behalf of members within States where a State organization has been chartered, and 5 cents per capita from members of locals directly affiliated to the national organization. At present, the rates are 3 and 7 cents, respectively, in accordance with changes made at the last annual convention, which changes went into effect on March 1 of this year. The national organization receives not more than 15 and not less than 10 cents on initiation fees which include the dues for the first month. The lower amount is paid where a State charter has been issued.

It is our hope that the simple facts we have recited here will serve to dispell the utterly fantastic illusions which have been current and cited as fact with regard to the fees and revenue of the Workers Alliance of America.

We want to take this occasion to also categorically declare that the Workers Alliance does not now nor has it at any time offered commissions to individuals on account of initiations or membership fees. All money over and above the amount of the per capita as described above must under our constitution remain with the locals or other subdivisions of our organization as part of their treasuries subject to disposal only according to the provisions of our constitution.

INCOME AND SOURCE OF INCOME

Our national organization operates on a monthly income which currently averages about $4,000. Dues, initiation fees and charter fees account for approximately 50 percent of this total. Income from the sale of other organizational supplies such as literature and our newspaper accounts for about 45 percent. Funds raised for special campaigns, contributions, and the proceeds of miscellaneous accounts constitute the remaining 5 percent.

EXPENDITURES AND PURPOSES OF EXPENDITURES

Because of the necessary limitations upon our income, the Workers Alliance must be able to conduct its many activities on the most economical basis possible.

For this reason, fixed charges such as necessary rents, salaries of officers and of the technical staff, and so forth, must be kept down to the lowest possible minimum. Most of our activities must be performed by members and officers who serve in their spare time without compensation. Those who devote their full time in the service of the organization must be willing to do so on the basis of very modest salaries that will make it possible for them to subsist without straining our limited resources.

Where national field organizers are employed, they are paid as little as $10 and in no case more than $20 per week, or about the maximum that is received by unskilled and semiskilled W. P. A.

workers.

The two national executive officers were receiving a weekly salary of $25 per week up until the time of the last convention and are now

paid $35 per week. Salaries for the technical staff in the national office range from $17 to $25.

A break-down of the financial report for the last quarter of 1938 shows that 22 percent of our expenditures goes to pay for office rent, equipment, maintenance, supplies, telephone, telegraph, and postage. Another 21 percent goes for operation of the national office as salaries to the technical staff. Salaries to national executive officers represent 6 percent. The printing of supplies and literature accounts for 29 percent, and organization expense 14 percent, and national actions and miscellaneous expense 8 percent.

This section attempts to give you in brief an outline of the material which we are submitting on the basis of the requests that appear in the subpenas you have presented to us. It is designed merely to indicate the general direction in which we believe you will want to examine into the financial affairs of the Workers' Alliance of America, and to give you such information as we can in a compact form.

PROCEDURES IN WORKS PROGRESS ADMINISTRATION LABOR RELATIONS

I want to say a few words in addition to what has been said by Mr. Lasser already, in the previous section of our statement, on the procedures in W. P. A. labor relations.

Under the regulations of the Works Progress Administration, grievances and complaints are taken by workers or their representatives, first to the immediate supervisor, then to the district or area administrative official, from there to the State administration, and only when an acceptable settlement has not been achieved in all these administrative subdivisions are matters to be brought to the Works Progress Administration in Washington. For these reasons, our national organization handles only a fractional proportion of the total number of grievances that arise and constitute the basis for what in private industry would be known as employer-employee disputes.

Our national office contact with labor-relations officials of the W. P. A. in Washington is therefore based on the cases which are appealed from subordinate divisions of the Administration and upon requests for assistance which come to us from isolated communities in States where we have no State-wide organization and officers.

I am making this particular explanation because also in your subpena you requested copies of our correspondence with the W. P. A., and I wanted to indicate what type of correspondence you would be likely to find.

In the case of appeals from subordinate subdivisions of the Administration there is usually involved some question of policy or outright refusal to adhere to national administrative orders and regulations. In the cases that come from isolated communities, there is usually the complaint by a group which does not understand how to avail itself of the rights under the law and regulations and is therefore subject to petty tyranny, discrimination, intimidation, or similar abuse of authority by supervisory and administrative officials.

We convey such complaints to the Administration through communications which we usually address to the Assistant Administrator in charge of the Employment Division where they are handled by the staff of the labor-relations section of that division. As we under

stand it, the office usually transmits our complaint to the respective State administration, which then forwards it down to the given area or district and requests a report. This procedure perhaps exercises a restraining influence upon subordinate officials who might otherwise feel more free to abuse their authority and disregard regulations. It seldom results in prompt redress of specific complaints and grievances, since the perpetrator of the action which caused the complaint usually denies the allegations and such denial is forwarded as the reply to the Employment Division of the W. P. A. and then to us. It is our opinion based upon our experience in dealing with the Administration that most of the difficulties arise not so much because of faulty regulations but because of inadequate provision for enforcement of the regulations. This in turn is not altogether the responsibility of those charged with these duties in Washington and even in the States.

The majority of the grievances, complaints, disputes, and conflicts occur because responsibility and authority is vested in persons in many cases who have had no previous experience and no preparation for duties that involve executive direction of as many workers as are put under their charge. Many of these supervisory officials not only have no previous knowledge of the complex problems of supervision over labor but are unwilling to even inform themselves of the regulations that are supposed to govern their relations with the workers employed on the program.

This situation can be adequately dealt with only if trained personnel is placed in supervisory positions. Minimum requirements should be fixed which should include a knowledge of the laws and regulations that govern the works program.

Political coercion and other reprehensible and criminal abuses are bound to occur on a program that is so widespread as this, as long as there is lacking an adequate staff to check on the execution and enforcement of regulations. Otherwise the laws and regulations are little more than a gesture. We believe the issue to be of sufficient importance to warrant serious consideration and such expenditures as may be entailed. Laws are useless if they are not provided the instruments for enforcement.

That concludes, then, the joint statement that we have prepared in response to your request.

Mr. LASSER. I would like to say that we thank the committee very much for its courtesy and patience in listening to our long recital.

Mr. WOODRUM. Mr. Roberts, counsel for the committee, will now proceed with such questions as he wishes to ask and at the conclusion of his questions it will be in order for any member of the committee to ask questions.

Mr. ROBERTS. Mr. Chairman, before proceeding with the examination of the witnesses, I would like to ask that the records and papers which they have produced be impounded in the possession of the committee, to remain here until returned by the committee to these gentlemen.

Mr. LASSER. Mr. Chairman, as I stated before, we have absolutely nothing to hide in the records. The only thing I would like to determine is this: I think that the members of the committee do not want any misunderstanding or any impression to be created that it is the Workers Alliance which is under investigation. I am wondering if

it would not be possible that a statement be made. for the record and for the press, as to the reason for this action, in order that the newspapers of the country may not be stating that the Workers' Alliance is being investigated and all records impounded, and some misapprehension be created as to the purpose of it. We want to cooperate with the committee. The records are here. We are ready to turn them over; but we think it is only fair that such a thing be done.

Mr. WOODRUM. The purpose of impounding the records, of course, is obvious. It is for the purpose of giving the committee an opportunity to examine the records. Obviously we cannot read the constitution and bylaws and the correspondence that you have brought here until the committee finishes its hearing. Of course they will be in the confidential custody of the committee, unless some portion of them is developed in these hearings.

Mr. O'NEAL. Mr. Chairman, I suggest that Mr. Lasser and Mr. Benjamin be permitted to make their statement for the record that they are willing to leave the records here, and that at the same time they reserve the right to their opinion that the supena does not hold them.

Mr. LASSER. That is not correct. The subpena calls for it.

Mr. O'NEAL. All right; that the resolution does not call for it. Mr. WOODRUM. That statement has been made on the record, Mr. O'Neal.

Mr. LASSER. I would like to reiterate the statement that it is our feeling that the resolution as worded, directing "a thorough investigation and study of the Works Progress Administration and the administration of laws, regulations, and orders administered by it," does not on the face of it appear to cover the examination of all the files and records of an organization of the workers, and that we had hoped that the committee would find it possible to make a statement indicating the reason for it, so that the Workers Alliance might not be put under any cloud. However, in a desire to cooperate fully with the committee, we will be glad to turn over all these things. They are here; they are ready. All that we ask is that a receipt be given to us for the material, and it is at the service of the committee. Mr. DITTER. Mr. Chairman, may I direct your attention to a further part of this resolution, which gives the committee the authority

to require the attendance of such witnesses and the production of such books, papers, and documents, and to take such testimony as it deems necessary.

If, in the judgment of the committee, the subpena has gone out, it seems to me the committee may determine whether it is acting within its province in backing up the request of the counsel that the records be impounded.

Mr. WOODRUM. I do not think there is any difference of opinion here. The committee is acting under the resolution to investigate the Works Progress Administration. As a part of that inquiry we have called on the Workers Alliance for certain information, and the Workers Alliance has produced that information. Whether the examination or the revelations will reflect creditably or with discredit upon the Workers Alliance will depend upon what is in it.

Mr. LASSER. We have no feeling but that it will reflect full credit on our organization, and we are ready to turn it over. Do you want this material now?