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the war.
And I would not have reduced the income taxes until they
had been paid. After they had been paid out of the incomes arising
out of the war then I would have agreed that we should have reduced
taxes, but not before. That is one place I disagree with you.

Mr. BESSE. I do not differ with you as to the income taxes.
Mr. KELLER. I am glad you do not.
I thank you.

I think that is about all.

Mr. BESSE. May I say that it has been a great pleasure to testify, in spite of the fact that I seem to have quite a different point of view than many of the committee.

Mr. KELLER. I think you have done quite well. You have agreed with one or two of us. I wanted you to agree with me, too.

Mr. ELLENBOGEN. I want to know, Mr. Besse, if you can tell the committee what is the percentage of Government orders which the woolen industry has now?

Mr. BESSE. For 1935, of the total machinery activity, that is, the total number of man hours, approximately 8 percent was accounted for by Government contracts. That includes contracts to our industry and contracts to others whom we made material.

Mr. ELLENBOGEN. What is the normal percentage?

Mr. BESSE. On Government work?

Mr. ELLENBOGEN. Yes; Government work. It is much less, is it not?

Mr. BESSE. If you take as normal the period following the war, and perhaps in the 1920's, it would be much less.

Mr. ELLENBOGEN. I would take 1924 to 1929.
Mr. BESSE. It would be materially less.

percent, or possibly around 2 percent.

It would probably be 3

Mr. ELLENBOGEN. If the Government would economize on the C. C. C., camps your industry would not like it?

Mr. BESSE. I dare say that is the case; nor would the C. C. C. boys either.

Mr. KELLER. I have a request here from Representative Plumley, of Vermont, to file with the committee a very short statement with respect to telegrams that he has been receiving.

Is there any objection on the part of the committee?

Mr. WOOD. Do you want to put in all of those telegrams that you have there before you?

Mr. KELLER. No. He says he summarizes them here in this statement. It is just one sheet.

(The statement referred to is as follows:)

STATEMENT OF HON. CHARLES A. PLUMLEY, MEMBER OF CONGRESS FROM THE STATE OF VERMONT

Mr. Chairman and gentlemen of the committee:

The receipt of countless telegrams from various Vermont constituents of mine, who are vitally interested in the textile industry, in reference to the so-called Ellenbogen bill, H. R. 9072, impels me to place before you some of the reactions that reside in their minds, as indicated by the content of their messages to me. Rather than quoting these messages in their entirety, I merely wish to submit their various characterizations, contained in some of the wires, relative to the measure in its present form.

It is stated that "if passed it sounds the death knell to textile industry"; that it "would spell ruin to the industry", "would be intolerable and work an injustice"; that it would "jeopardize the livlihood of thousands of workers in this community" that it is "impracticable as a whole and a detriment to the industry"; that it is

"vicious in application", "a menace to best interest of employer and employee"; that it "will endanger the existence of my job and of my company"; that "it spells ruination of the textile industry"; that it "is objectionable in its present form"; that it will "curtail production"; will "increase burden and costs"; and that it is "hazardous", "dangerous", "harmful”, and “detrimental”; that it contains provisions, in its present form, that are “intolerable, unworkable, tending inevitably to wipe out woolen industries * * would unquestionably compel shutdown of mills resulting not only in loss of capital investment but of even greater importance in unemployment of thousands of workers, causing widespread misfortune * *

*

I would like to have it appear that the quotations that I have used were taken from messages this morning received from the following constituents of mine, resident in the vicinity of Burlington, Vt.:

Messrs. Leonard Alexander, George Breault, J. R. Butter, Harry W. Carleton, Lester Cruse, Wight Davis, George Edwards, Joseph Erwin, George and Hugh Finnegan, Harley Fisher, Henry Fountain, Harley Hurlbert, Edward Johnson, George Keefe, John Keleher, Charles Lavallee, Oliver Lecuyer, Harold McNulty, John Major, Henry Morrissey, Fred Norman, John O'Brien, W. K. Olsen, A. Č. Quance, Frank Schmanska, Clifford Slater, A. Talbert, Edward Walsh, and George Whitney.

Mr. KELLER. We will adjourn at this time until tomorrow morning. Tomorrow morning we will meet 15 minutes late for the taking of testimony. The committee will meet at 10 a. m. to go into executive session.

(Whereupon, at 5 p. m., the committee adjourned until Friday, Jan. 31, 1936, at 10 a. m.)

TO REHABILITATE AND STABILIZE LABOR CONDITIONS IN THE TEXTILE INDUSTRY OF THE UNITED STATES

FRIDAY, JANUARY 31, 1936

HOUSE OF REPRESENTATIVES,

SUBCOMMITTEE OF THE COMMITTEE ON LABOR,

Washington, D. C.

The subcommittee met at 10:15 o'clock, Hon. Kent E. Keller (chairman) presiding.

Mr. KELLER. The committee will be in order.

Our first witness is Dr. Murchison.

STATEMENT OF DR. CLAUDIUS MURCHISON, PRESIDENT OF THE COTTON TEXTILE INSTITUTE

Mr. KELLER. Doctor, will you state your name and whom you represent?

Mr. MURCHISON. I am representing the Cotton Textile Institute. I am president of the Cotton Textile Institute.

Mr. WOOD. Does that institute have any connection with the organization of the gentleman who testified yesterday?

Mr. MURCHISON. No; his was the Wool Institute. I have been connected with that institute since November 15, so the period of service is rather short so far.

Mr. KELLER. Before presenting your formal statement to the committee, will you explain to us what these institutes are doing, or what they are supposed to do; with reference to your institute, what connection is has with the industry?

Mr. MURCHISON. I will be very glad to try to do that.
Mr. WOOD. In other words, the purpose of the institute.
Mr. KELLER. That is what I mean exactly.

Mr. MURCHISON. Yes. The institute is an organization whose membership is composed of, I should say, approximately three-fourths of the cotton textile industry. The institute has for one of its major functions the collection of statistical data from its members.

The institute receives periodical reports on production and inventories, wage schedules, and other matters of interest for the industry as a whole.

The institute also has its new uses division and its sales-promotion division, the purpose of which is to promote the consumption of cotton goods in whatever way seems possible.

The institute also serves as the clearing house for the opinions, policies, and views of the industry as a whole.

The institute calls at meetings of the various groups of the industry. For example, the sheetings group or the print-cloth group, or the yarn group; because the industry is very complicated, and although in the

popular mind it is regarded as rather a homogeneous group yet, as a matter of fact, the variation in the type of goods produced is such as to create special problems among the different members of the industry. So there are special groups and the institute works with those groups and serves in a presiding capacity and also in a coordinating capacity.

Now, the industry has, in addition to the institute, associationsthe southern cotton mills, for example, have an association known as the American Cotton Manufacturers Association; the New England division has the National Cotton Manufacturers Association. Those two major associations include within their membership all the cotton mills. Now, of course, there are other associations. There is a yarn association.

Mr. RAMSPECK. What connection have the State associations with the institute, if any?

Mr. MURCHISON. No direct connection. The State associations are more closely affiliated with the American and national associations, and through them, of course, work with the institute.

The institute is in close-working relationship with their associations. As a matter of fact, now, the vice presidents of the institute are the presidents of the two major associations.

Mr. WOOD. Does the institute ever discuss the matter of collective bargaining among its membership? Did you ever consider that as an organization?

Mr. MURCHISON. No. In the cotton textile industry, the matter of collective bargaining has been so far left to the individual. Mr. WOOD. The institute has not dealt with that at all?

Mr. MURCHISON. The institute has not dealt with that as such. Mr. ELLENBOGEN. Has it not been discussed at meetings of the institute?

Mr. MURCHISON. No. The meetings of the institute are all concerned with matters of business policy and with certain relations with the Government as, for example, the processing tax; matters of

that sort.

Mr. KELLER. Would you not consider that the subject of collective bargaining is a business matter of interest to the institute?

Mr. MURCHISON. The labor questions are usually put in a separate classification.

Mr. KELLER. And are not considered

Mr. MURCHISON. I think that is the common practice. Mr. KELLER. And are not considered in the institute? Mr. MURCHISON. No; the institute has never attempted to determine, or to consult with the industry on matters of labor policy. Mr. KELLER. Is there any organization within the cotton industry that does take up and consider, as a whole, that question?

Mr. MURCHISON. It may be from time to time the associations have. On that point, however

Mr. KELLER. What association would you refer to?

Mr. MURCHISON. It is possible that the American association, the national association, or the various associations have, but I do not know.

Mr. KELLER. Is there a national organization of the cotton industry outside of your institute?

Mr. MURCHISON. No; the institute is the only organization that covers the industry as a whole.

Mr. KELLER. And it does not go

Mr. MURCHISON. It does not go into those matters.

Mr. KELLER. Thank you.

Mr. WOOD. What portion of the North and South textile manufacturers does your organization represent? Is the three-fourths you mentioned, three-fourths of the northern manufacturers as well as the southern?

Mr. MURCHISON. Yes; I would say that is substantially correct. I can provide for you the exact percentages in both cases, Mr. Wood, in a moment, if you would like to have those figures.

Mr. WOOD. No; that is sufficient for my purpose at present.

Mr. SCHNEIDER. Is your association affiliated with the National Manufacturers Association?

Mr. MURCHISON. No; not at all.

Mr. SCHNEIDER. It has no connection at all?

Mr. MURCHISON. None whatever.

Mr. ELLENBOGEN. Has the institute discussed the question of hours, Dr. Murchison?

Mr. MURCHISON. Oh, yes.

Mr. ELLENBOGEN. And wages?

Mr. MURCHISON. Yes; the question of minimum wages, especially. Mr. ELLENBOGEN. And labor relations?

Mr. MURCHISON. NO.

Mr. ELLENBOGEN. Well, what do you call wages and hours? What have they discussed? Give us the topics.

Mr. MURCHISON. Now, if I may, I was hoping to develop that. Mr. RAMSPECK. Mr. Chairman, I was going to suggest that the witness be permitted to proceed with his statement and then submit to questions by the committee.

Mr. KELLER. Yes, I suppose that is a good suggestion. Please proceed with your statement and then we will ask you questions. Mr. ELLENBOGEN. I did not mean to interrupt.

Mr. MURCHISON. In order to inform the committee as to my own qualifications to discuss the problems of the textile industry, with your indulgence I will tell you what my personal connection with the industry has been.

My native State is North Carolina. I was born within 2 miles of a cotton mill and most of my adult life has been spent in the vicinity of cotton mills. As a young man, many of my associates were workers in cotton mills. I have not only lived in North Carolina but also in Georgia and Virginia.

Mr. WOOD. Were you ever connected with the industry in any manner?

Mr. MURCHISON. I have never worked in a cotton mill, have not been connected with the industry in any manner, until this last year. I have had no financial interest in cotton mills, have never owned a dollar of stock in a cotton mill.

Mr. WOOD. Are you an attorney?

Mr. MURCHISON. No, I am not an attorney. I have been, during most of my life, a college professor.

I was at the University of North Carolina from 1921 to 1934. At the university I taught economics, and, as an economist, living and working in a community where the major problem had to do with the textile industry, I specialized my studies on the textile

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