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under this Act. Nothing herein shall be construed as depriving the National Labor Relations Board of power to take appropriate action under the National Labor Relations Act; the actions and penalties under this Act and under the National Labor Relations Act shall be deemed concurrent.

SEIZURE OF PRODUCTS NOT BEARING LABELS OR STAMPS SEC. 34. Any textile product which is purchased, sold, shipped, transported, or delivered in interstate commerce in violation of this Act shall be subject to seizure by any public officer or by any officer of the Commission authorized by the Commission and shall be forfeited to the United States.


Sec. 35. (a) The Commission may require any person subject to any license issued under this Act to submit accurate reports, truthful and responsive answers to interrogatories and to keep such accounts or systems of accounts, and to permit such access to all books and records within the control of such business (including books and records of any affiliate or subsidiary), as the Commission may deem necessary to effectuate the purposes of this Act.

(h) The Commission may, in its discretion, make such investigations as it deems necessary or appropriate to determine whether any person has violated or is about to violate any provision of this Act or of any license, rule, or regulation issued thereunder, or whether any license issued unde: this Act is effectuating the declared policy of this Act, and may require or permit any person to file with it a statement in writing, under oath or otherwise, as it shall determine, as to all the facts and circumstances concerning the matter to be investigated. The Commission is authorized, in its discretion, to publish information concerning any such violations or to investigate any facts, conditions, practices, or matters which it may deem necessary or proper to aid in the enforcement of the provisions of this Act, in the issuance of any license, rule, or regulation thereunder, or in securing information to serve as a basis for recommending further legislation concerning the matters to which this Act relates.

(c) The Commission for the purpose of any such investigation or any other proceeding under this Act is empowered to administer oaths and affirmations, subpena witnesses, compel their attendance, take evidence, and require the production of any books and records of licenses or other persons dealing with or handling textile products which it deems relevant or material to any proper inquiry. Such attendance of witnesses and the production of any such books and records may be required from any place in the United States or any State at any designated place of hearing.

(d) In case of contumacy by, or refusal to obey a subpena issued to any per on, the Commission may invoke the aid of any court of the United States within the jurisdiction of which such investigation or proceeding is carried on, or where such person resides or carries on business, in requiring the attendance and testimony of witnesses and the production of books and records. Such court may issue an order requiring such person to appear before the Commission there to produce books and records, if so ordered, or to give testimony touching the matter under investigation or in question; and any failure to obey such order of the court may be punished by such court as a contempt thereof. All process in any such case may be served in the judicial district whereof such person is an inhabitant or wherever he may be found. Any person who shall, without just cause, fail or refuse to attend and testify or to answer any lawful inquiry or to produce books and records, if in his power so to do, shall be guilty of a misdemeanor and, upon conviction shall be subject to a fine of not more than $1,000, or imprisonment for a term of not more than one year, or both.

(e) No person shall be excused from attending and testifying or from producing books and records before the Commission, or in obedience to the subpena of the Commission, or in any cause or proceeding instituted by the Commission, on the ground that the testimony or evidence, documentary or otherwise, required of him may tend to incriminate him or subject him to a penalty or forfeiture; but no individual shall be prosecuted or subject to any penalty or forfeiture for or on account of any transaction, matter, or thing concerning which he is compelled, after having claimed his privilege against self-incrimination, to testify or produce evidence, documentary or otherwise, except that such individual so testifying shall not be exempt from prosecution and punishment for perjury committed in so testifying.

(f) Complaints, orders, and other process and papers of the Commission, its member, agent, or agency, may be served either personally or by registered mail



or by telegraph or by leaving a copy thereof at the principal office or place of business of the person required to be served. The verified return by the individual so serving the same setting forth the manner of such service shall be proof of the same, and the return post-office receipt or telegraph receipt therefor when registered and mailed or telegraphed as aforesaid shall be proof of service of the

Witnesses summoned before the Commission, its member, agent, or agency, shall be paid the same fees and mileage that are paid witnesses in the courts of the United States, and witnesses w se depositions are taken and the persons taking the same shall severally be entitled to the same fees as are paid for like services in the courts of the United States.

(g) All process of any court to which application may be made under this Act may be served in the judicial district wherein the defendant or other person required to be served resides or may be found.

(h) The several departments and bureaus of the Government shall furnish the Commission, upon request, all records, papers, and information in their possession relating to any matter before the Commission.

(i) Upon the request of the Commission, the Federal Trade Commission shall make such investigations as may be necessary to enable the Commission to carry out the provisions of this Act, and for such other purposes the Federal Trade Commission shall have the powers vested in it with respect to investigations under the Federal Trade Commission Act, as amended.

PENALTIES Sec. 36. (a) Any violation of this Act shall be deemed a misdemeanor and upon conviction thereof an offender shall be fined not more than $100,000 for each offense or imprisoned for not more than one year, or both; each violation shall be deemed a separate offense.

(b) The several District Courts of the United States are hereby invested with jurisdiction to prevent and restrain any violation of the provisions of this Act; and it shall be the duty of the Commission, and of the several district attorneys of the United States in their respective districts upon request of the Commission, to institute proceedings in equity to prevent and restrain any violation of the provisions of this Act in the judicial district wherein such violation occurred or wherein the person complained of resides or transacts business. Such proceedings may be by way of petitions setting forth the case and praying that such violation be enjoined and that such affirmative action be required as will effectuate the policies of this Act. When such person shall have been duly notified of such petition the court shall proceed as soon as may be to the hearing and determination of the case; and pending such petition and before final decree the court may at any time make such temporary restraining order or prohibition as shall be deemed just in the premises.

(c) Any person who shall willfully assault, resist, prevent, impede, or interfere with any member of the Commission or any of its agents or agencies in the performance of duties pursuant to this Act shall be punishable by a fine of not more than $1,000 or by imprisonment for not more than one year, or both.


Sec. 37. The provisions of this Act shall not apply to any purchase, sale, shipment, transportation, delivery, or receipt of textile products of a personal and noncommercial character, nor to the purchase, shipment, transportation, delivery, or receipt of textile products from foreign countries.

Sec. 38. Nothing in this Act shall be construed or applied so as to interfere with or impede or diminish in any way the right to strike.

APPROPRIATION Sec. 39. The sum of $250,000, or as much thereof as may be necessary, is hereby authorized to be appropriated and made available to carry out the provisions of this Act, to be paid out of the money in the Treasury of the United States not otherwise appropriated.


Sec. 40. If any clause, sentence, paragraph, or part of this Act, or the application thereof to any person or circumstance, shall, for any reason, be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair, or invalidate the remainder of this Act and the application of such provision to other persons or circumstances, but shall be confined in its operation to the clause, sentence, paragraph, or part thereof directly involved in the controversy in which such judgment shall have been rendered and to the person or circumstances involved.


SEC. 41. This Act shall become effective thirty days from the date of approval thereof by the President of the United States.

RIGHT TO ALTER, AMEND, OR REPEAL Sec. 42. The right to alter, amend, or repeal any provision of this Act is hereby reserved to the Congress.


Sec. 43. This Act may be cited as the “National Textile Act.”

Mr. KELLER. Ladies and gentlemen, we were put into this room at a very late date. We expected to use the smaller room, that is, the Labor Committee room, but there were a couple of other investigations taking place so we gave up that room and came over here. You will appreciate why we are trying to get things adjusted here now.

We want to have this hearing be to the advantage of everyone who is directly financially interested in the bill in one way or another. I know that every one of you will appreciate what we are trying to do and will help us by keeping the very best of order. We will ask that everyone speak so that others may hear without any difficulty.

I am going to introduce first the author of the bill that is under consideration at the present time and ask him to make a general statement.



Mr. ELLENBOGEN. Mr. Chairman and members of the committee, may I say that I would like just briefly to go over the bill, section by section, and give a short explanation of each section, and then introduce witnesses. Then I should like to ask permission from the committee at the end of the hearing to present an argument for the bill and endeavor to show to the committee that the bill should be favorably reported.

The purpose of the bill is to provide regulation of labor conditions and fair-trade practices in the textile industry. Even in 1929, at the height of prosperity, the textile industry was well on its way down. Extravagantly expanded during the war-time period, it took a nosedive in the middle twenties from which it has never recovered.

In this bill we attempt to preserve those features of the N. R. A. that have proven successful and include only those sections that we feel are of value to the industry.

The bill contemplates the regulation of fair trade practices for the purpose of protecting the honest employer against chiseling fellow employers and establishes minimum standards of labor, so that one of the chief evils in the textile industry, the competition between employers at the expense of labor, will be eliminated.

Section 1: In section 1 you will find certain findings of fact. Those findings of fact will present a picture of facts in the industry and are necessary to establish the jurisdiction of the Congress to legislate on the textile industry.

I will very briefly mention a few of them. For instance, on page 2, at the top of the page, I would invite the committee to follow me briefly through the bill for just a few minutes so that when sections are referred to later they will have the benefit of it. On the top of page 2 you will find, for instance, that the production of textile products in the United States and their distribution throughout the United States and foreign countries is affected with a national public interest.

The bill does not attempt to regulate production. It only attempts to regulate the distribution of textile products, and only the distribution of such products as may be in interstate commerce. We feel that the Congress has the privilege to say that certain products, which are manufactured in a way so as to adversely affect the flow of interstate commerce, can be eliminated from such interstate commerce and its entry into interstate commerce can be prohibited.

Subsection 2 of section 1 finds as a fact by the Congress that the flow of raw cotton, wool, silk, and other raw materials and supplies from certain States and from foreign countries to textile mills, form a continuous stream in interstate commerce.

Section 3 goes on to recite the history. In recent years this flow of interstate and foreign commerce in textile products has substantially declined in value and amount, has been subject to severe price instability, has been diverted in large quantities from certain States to other States and from certain mills to other mills by reason of unfair competition in wage rates and other conditions of employment, and in that way has adversely affected interstate and foreign commerce in textile products.

Subsection 4 says that such effects upon interstate and foreign commerce in textile products have been caused directly and primarily by the instability of wage rates and other labor costs in the production of said products.

I will not go into the other subsections, but they are all findings of fact necessary to establish the jurisdiction of the Congress over the interstate flow of textile products.

Section 2 continues the findings of fact and contains a legislative determination.

I would like to call the attention of the committee to page 5, subsection (b), which lays down the policy which has guided us in drafting this act. I will read it, if I may. This is line 8, page 5, subsection (b).

(b) It is hereby declared that the existence of the evils in the textile industry as set forth in sections 1 and 2 of this Act is contrary to the public interest and to the policy of Congress, that it is the policy of Congress to remove these evils by this Act, and that it is among the purposes of this Act

Those next two subsections are of great importance.

(1) to deny the use of the channels of interstate commerce for the perpetuation and accentuation of such evils; and

(2) to deny the use of the mails, the benefits of Government purchases, contracts, loans, and grants, and the privilege of registration of securities to any person producing textile products under said conditions or contrary to the standards set forth in this Act.

Those are the clauses in the Constitution under which we believe we have jurisdiction. And I would just like to go into that for a moment or two.

No. 1: We feel that the interstate commerce clause gives the Congress power to regulate the flow of products in interstate and foreign commerce. The committee is going to hear a great deal about the constitutionality or alleged unconstitutionality of this bill. It is going to be said, as it has been said in letters to me, that the decision on the N. R. A. which was handed down by the Supreme Court last year and the decision on the A. A. A., handed down just a few weeks ago, shows that the act is unconstitutional. Aside from the question of the constitutionality—and we feel that the act is constitutional I would like to call the attention of the Committee to the nature of these two decisions.

The decision on the N. R. A. certainly does not contain anything that would in any way affect the constitutionality of this bill. The N. R. A. decision is based upon two points. The first point is that the Congress illegally delegated its powers to make laws by failing to set the standards and determine the rules by which the Executive discretion must be guided in laying down rules and regulations for the industry; that is, the delegation of powers was at fault in the N. R. A. But that cannot be said to be the case here. Some of the details are, perhaps, rather too minutely worked out. But surely there cannot be any question of an illegal delegation of power in this bill.

The second principle laid down in the N. R. A. case is that the killing of chickens in the market of New York is not in the flow of interstate commerce but is purely a local affair. After the end of the journey, after the poultry has been in interstate commerce and lands in New York and leaves the hands of the man who shipped it, and it is sold to a man who does the killing and the selling in the local market, the interstate journey is ended and, therefore, the jurisdiction of Congress is ended.

We do not attempt to regulate the selling in retail of textile products. That would be purely a local matter. We regulate only the interstate flow of textile products.

Whatever may be said—and I will say to the committee fairly and frankly that it may be said by some lawyers that the bill is not constitutional But they cannot point to the N. R. A. decision. They will find no support in the N. R. A. decision for such a statement.

Most of the letters I have received refer to the A. A. A. decision. That shows the existing confusion, because the 1. A. 1. decision most certainly does not touch this bill; the majority opinion of the Supreme Court says expressly that the commerce clause is not involved in the A. A. A. decision.

None of these bills, whether they be the Wagner-Connery Labor Relations Act, or any other bills dealing with labor conditions, is in any way affected by the A. A. A. decision. The A. A. A. decision is out so far as this bill is concerned.

We feel that the bill before you is constitutional and we are going to file a brief with the committee which will establish in our sincere opinion the constitutionality of the bill. We do not say that any lawyer who disagrees is dishonest. There may be disagreement. But we feel that the preponderance of opinion is in favor of the constitutionality of this bill.

I want to go now to the other parts of the Constitution upon which we depend. One is to deny the use of the mails. When it comes to

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