ARTICLE VI "Stevedores

tion 3 of article V. Any applicant ineligible for a license by reason of any such conviction

verified as follows:

"(a) If the applicant is a natural person, the application shall be signed and verified by such person and if the applicant is a partnership, the application shall be signed and verified by each natural person composing or intending to compose such partnership. The application shall state the full name, age, residence, business address (if any), present and previous occupations of each natural person so signing the same, and any other facts and evidence as may be required by the commission to ascertain the character, integrity, and identity of each natural person so signing such application.

"(b) If the applicant is a corporation, the application shall be signed and verified by the president, secretary and treasurer thereof, and shall specify the name of the corporation, the date and place of its incorporation, the location of its principal place of business, the names and addresses of, and the amount of the stock held by stockholders owning 5 percent or more of any of the stock thereof, and of all officers (including all members of the board of directors). The requirements of subdivision (a) of this section as to a natural person who is a member of a partnership, and such requirements as may be specified in rules and regulations promulgated by the commission, shall apply to each such officer or stockholder and their successors in office or interest as the case may be.

"In the event of the death, resignation or removal of any officer, and in the event of any change in the list of stockholders who shall own 5 percent or more of the stock of the corporation, the secretary of such corporation shall forthwith give notice of that fact in writing to the commission, certified by said secretary.

"3. No such license shall be granted

"(a) If any person whose signature or name appears in the application is not the real party in interest required by section 2 of this article to sign or to be identified in the application or if the person so signing or named in the application is an undisclosed agent or trustee for any such real party in interest

"(b) Unless the commission shall be satisfied that the applicant and all members, officers, and stockholders required by section 2 of this article to sign or be identified in the application for license possess good character and integrity;

"(c) Unless the applicant is either a natural person, partnership, or corporation;

"(d) Unless the applicant shall be a party to a contract then in force or which will take effect upon the issuance of a license, with a carrier of freight by water for the loading and unloading by the applicant of one or more vessels of such carrier at a pier within the port of New York district;

"(e) If the applicant or any member, officer, or stockholder required by section 2 of this article to sign or be identified in the application for license has, without subsequent pardon, been convicted by a court of the United States or any State or Territory thereof of the commission of, or the attempt or conspiracy to commit, treason, murder, manslaughter, or any felony or high misdemeanor or any of the misdemeanors or offenses described in subdivision (b) of sec

commission that the person whose conviction was the basis of ineligibility has for a period of not less than 5 years, measured as hereinafter provided and up to the time of application, so conducted himself as to warrant the grant of such license, in which event the commission may, in its discretion issue an order removing such ineligibility. The aforesaid period of 5 years shall be measured either from the date of payment of any fine imposed upon such person or the suspension of sentence or from the date of his unrevoked release from custody by parole, commutation, or termination of his sentence;

"(f) If, on or after July 1, 1953, the applicant has paid, given, caused to have been paid or given or offered to pay or give to any officer or employee of any carrier of freight by water any valuable consideration for an improper or unlawful purpose or to induce such person to procure the employment of the applicant by such carrier for the performance of stevedoring services;

"(g) If, on or after July 1, 1953, the applicant has paid, given, caused to be paid or given or offered to pay or give to any officer or representative of a labor organization any valuable consideration for an improper or unlawful purpose or to induce such officer or representative to subordinate the interests of such labor organization or its members in the management of the affairs of such labor organization to the interests of the applicant.

"4. When the application shall have been examined and such further inquiry and investigation made as the commission shall deem proper and when the commission shall be satisfied therefrom that the applicant possesses the qualifications and requirements prescribed in this article, the commission shall issue and deliver a license to such applicant. The commission may issue a temporary permit to any applicant for a license under the provisions of this article pending final action on an application made for such a license. Any such permit shall be valid for a period not in excess of 30 days.

"5. A license granted pursuant to this article shall be for a term of 2 years or fraction of such 2-year period, and shall expire on the 1st day of December of each odd-numbered year. In the event of the death of the licensee, if a natural person, or its termination or dissolution by reason of the death of a partner, if a partnership, or if the licensee shall cease to be a party to any contract of the type required by subdivision (d) of section 3 of this article, the license shall terminate 90 days after such event or upon its expiration date, whichever shall be sooner. A license may be renewed by the commission for successive 2-year periods upon fulfilling the same requirements as are set forth in this article for an original application.

"6. Any license issued pursuant to this article may be revoked or suspended for such period as the Commission deems in the public interest or the licensee thereunder may be reprimanded for any of the following offenses on the part of the licensee or of any person required by section 2 of this article to sign or be identified in an original application for a license:

"(a) Conviction of a crime or other cause which would permit or require disqualification of the licensee from receiving a license upon original application;

"(b) Fraud, deceit, or misrepresentation in securing the license or in the conduct of the licensed activity;

"(c) Failure by the licensee to maintain a complete set of books and records containing a true and accurate account of the licensee's receipts and disbursements arising out of his activities within the port of New York district;

"(d) Failure to keep said books and records available during business hours for

inspection by the Commission and its duly designated representatives until the expiration of the fifth calendar year following the calendar year during which occurred the transactions recorded therein;

"(e) Any other offense described in subdivisions (c) to (i) inclusive, of section 7 of article V.

"ARTICLE VII

"Prohibition of public loading

"1. The States of New Jersey and New York hereby find and declare that the transfer of cargo to and from trucks at piers and other waterfront terminals in the port of New York district has resulted in vicious and notorious abuses by persons commonly known as "public loaders." There is compelling evidence that such persons have exacted the payment of exorbitant charges for their services, real and alleged, and otherwise extorted large sums through force, threats of violence, unauthorized labor disturbances, and other coercive activities, and that they have been responsible for and abetted criminal activities on the waterfront. These practices which have developed in the port of New York district impose unjustified costs on the handling of goods in and through the port of New York district, and increase the prices paid by consumers for food, fuel, and other necessaries, and impair the economic stability of the port of New York district. It is the sense of the legislatures of the States of New York and New Jersey that these practices and conditions must be eliminated to prevent grave injury to the welfare of the people.

"2. It is hereby declared to be against the public policy of the States of New Jersey and New York and to be unlawful for any person to load or unload waterborne freight onto or from vehicles other than railroad cars at piers or at other waterfront terminals within the port of New York district, for a fee or other compensation, other than the following persons and their employees:

"(a) Carriers of freight by water, but only at piers at which their vessels are berthed: "(b) Other carriers of freight (including but not limited to railroads and truckers), but only in connection with freight transported or to be transported by such carriers;

"(c) Operators of piers or other waterfront terminals (including railroads, truck terminal operators, warehousemen and other persons), but only at piers or other waterfront terminals operated by them;

"(d) Shippers or consignees of freight, but only in connection with freight shipped by such shipper or consigned to such consignee;

"(e) Stevedores licensed under article VI, whether or not such waterborne freight has been or is to be transported by a carrier of freight by water with which such stevedore shall have a contract of the type prescribed by subdivision (d) of section 3 of article VI.

"Nothing herein contained shall be deemed to permit any such loading or unloading of any waterborne freight at any place by any such person by means of any independent contractor, or any other agent other than an employee, unless such independent contractor is a person permitted by this article to load or unload such freight at such place in his own right.

"ARTICLE VIII "Longshoremen

"1. The commission shall establish a longshoremen's register in which shall be included all qualified longshoremen eligible, as hereinafter provided, for employment as such in the port of New York district. On or after the 1st day of December 1953, no person shall act as a longshoreman within the port of New York district unless at the time he is included in the longshoremen's register, and no person shall employ another to work as a longshoreman within the port

of New York district unless at the time such other person is included in the longshoremen's register.

"2. Any person applying for inclusion in the longshoremen's register shall file at such place and in such manner as the Commission shall designate a written statement, signed and verified by such person, setting forth his full name, residence address, socialsecurity number, and such further facts and evidence as the commission may prescribe to establish the identity of such person and his criminal record, if any.

"3. The commission may in its discretion deny application for inclusion in the longshoremen's register by a person

"(a) Who has been convicted by a court of the United States or any State or territory thereof, without subsequent pardon, of treason, murder, manslaughter, or of any felony or high misdemeanor or of any of the misdemeanors or offenses described in subdivision (b) of section 3 of article V or of attempt or conspiracy to commit any of such crimes;

"(b) Who knowingly or willingly advocates the desirability of overthrowing or destroying the Government of the United States by force or violence or who shall be a member of a group which advocates such desirability knowing the purposes of such group includes such advocacy;

"(c) Whose presence at the piers or other waterfront terminals in the port of New York district is found by the commission on the basis of the facts and evidence before it, to constitute a danger to the public peace or safety.

The

"4. Unless the commission shall determine to exclude the applicant from the longshoremen's register on a ground set forth in section 3 of this article it shall include such person in the longshoremen's register. commission may permit temporary registration of any applicant under the provisions of this article pending final action on an application made for such registration. Any such temporary registration shall be valid for a period not in excess of 30 days.

"5. The commission shall have power to reprimand any longshoreman registered under this article or to remove him from the longshoremen's register for such period of time as it deems in the public interest for any of the following offenses:

"(a) Conviction of a crime or other cause which would permit disqualification of such person from inclusion in the longshoremen's register upon original application;

"(b) Fraud, deceit, or misrepresentation in securing inclusion in the longshoremen's register;

"(c) Transfer or surrender of possession to any person either temporarily or permanently of any card or other means of identification issued by the commission as evidence of inclusion in the longshoremen's register, without satisfactory explanation;

"(d) False impersonation of another longshoreman registered under this article or of another person licensed under this compact;

"(e) Willful commission of or willful attempt to commit at or on a waterfront terminal or adjacent highway any act of physical injury to any other person or of willful damage to or misappropriation of any other person's property, unless justified or excused by law; and

"(f) Any other offense described in subdivisions (c) to (f) inclusive of section 7 of article V.

"6. The commission shall have the right to recover possession of any card or other means of identification issued as evidence of inclusion in the longshoremen's register in the event that the holder thereof has been removed from the longshoremen's register.

"7. Nothing contained in this article shall be construed to limit in any way any rights of labor reserved by article XV.

"ARTICLE IX

"Regularization of longshoremen's
employment

"1. On or after the 1st day of December 1954 the commission shall, at regular inter

vals, remove from the longshoremen's register any person who shall have been registered for at least 9 months and who shall have failed during the preceding 6 calendar months either to have worked as a longshoreman in the port of New York district or to have applied for employment as longshoreman at an employment information center established under article XII for such minimum number of days as shall have been established by the commission pursuant to section 2 of this article.

"2. On or before the 1st day of June 1954, and on or before each succeeding 1st day of June or December, the commission shall, for the purposes of section 1 of this article, establish for the 6-month period beginning on each date a minimum number of days and the distribution of such days during such period.

"3. In establishing any such minimum number of days or period, the commission shall observe the following standards:

"(a) To encourage as far as practicable the regulation of the employment of longshoremen;

"(b) To bring the number of eligible longshoremen more closely into balance with the demand for longshoremen's services within the port of New York district without reducing the number of eligible longshoremen below that necessary to meet the requirements of longshoremen in the port of New York district;

"(c) To eliminate oppressive and evil hiring practices affecting longshoremen and waterborne commerce in the port of New York district;

"(d) To eliminate unlawful practices injurious to waterfront labor; and

"(e) To establish hiring practices and conditions which will permit the termination of governmental regulation and intervention at the earliest opportunity.

"4. A longshoreman who has been removed from the longshoremen's register pursuant to this article may seek reinstatement upon fulfilling the same requirements as for initial inclusion in the longshoremen's register, but not before the expiration of 1 year from the date of removal, except that immediate reinstatement shall be made upon proper showing that the registrant's failure to work or apply for work the minimum number of days above described was caused by the fact that the registrant was engaged in the military service of the United States or was incapacitated by ill health, physical injury, or other good cause.

"5. Notwithstanding any other provision of this article, the commission shall at any time have the power to register longshoremen on a temporary basis to meet special or emergency needs.

"ARTICLE X

"Port watchman

"1. On or after the 1st day of December 1953, no person shall act as a port watchman within the port of New York district without first having obtained a license from the commission, and no person shall employ a port watchman who is not so licensed.

"2. A license to act as a port watchman shall be issued only upon written application, duly verified, which shall state the following:

"(a) The full name, residence, business address (if any), place and date of birth and social security number of the applicant;

"(b) The present and previous occupations of the applicant, including the places where he was employed and the names of his employers;

"(c) The citizenship of the applicant and, if he is a naturalized citizen of the United States, the court and date of his naturalization; and

"(d) Such further facts and evidence as may be required by the commission to ascertain the character, integrity, and identity of the applicant.

"3. No such license shall be granted

"(a) Unless the commission shall be satisfied that the applicant possesses good character and integrity;

"(b) If the applicant has, without subsequent pardon, been convicted by a court of the United States or of any State or territory thereof of the commission of, or the attempt or conspiracy to commit, treason, murder, manslaughter, or any felony or high misdemeanor or any of the misdemeanors or offenses described in subdivision (b) of section 3 of article V;

"(c) Unless the applicant shall meet such reasonable standards of physical and mental fitness for the discharge of his duties as may from time to time be established by the commission;

"(d) If the applicant shall be a member of any labor organization which represents longshoremen or pier superintendents or hiring agents; but nothing in this article shall be deemed to prohibit port watchmen from being represented by a labor organization or organizations which do not also represent longshoremen or pier superintendents or hiring agents. The American Federation of Labor, the Congress of Industrial Organizations, and any other similar federation, congress, or other organization of national or international occupational or industrial labor organizations shall not be considered an organization which represents longshoremen or pier superintendents or hiring agents within the meaning of this section although one of the federated or constituent labor organizations thereof may represent longshoremen or pier superintendents or hiring agents.

"(e) If the applicant knowingly or willfully advocates the desirability of overthrowing or destroying the Government of the United States by force or violence or shall be a member of a group which advocates such desirability, knowing the purposes of such group include such advocacy.

"4. When the application shall have been examined and such further inquiry and investigation made as the commission shall deem proper and when the commission shall be satisfied therefrom that the applicant possesses the qualifications and requirements prescribed by this article and regulations issued pursuant thereto, the commission shall issue and deliver a license to the applicant. The commission may issue a temporary permit to any applicant for a license under the provisions of this article pending final action on an application made for such a license. Any such permit shall be valid for a period not in excess of 30 days.

"5. A license granted pursuant to this article shall continue for a term of 3 years. A license may be renewed by the commission for successive 3-year periods upon fulfilling the same requirements as are set forth in this article for an original application.

"6. Any license issued pursuant to this article may be revoked or suspended for such period as the commission deems in the public interest or the licensee thereunder may be reprimanded for any of the following offenses:

"(a) Conviction of a crime or other cause which would permit or require his disqualification from receiving a license upon original application;

"(b) Fraud, deceit or misrepresentation in securing the license; and

"(c) Any other offense described in subdivisions (c) to (i), inclusive, of section 7 of article V.

"ARTICLE XI

"Hearings, determinations and review "1. The commission shall not deny any application for a license or registration without giving the applicant or prospective li

censee reasonable prior notice and an opportunity to be heard.

"2. Any application for a license or for inclusion in the longshoremen's register, and any license issued or registration made, may be denied, revoked, cancelled, suspended as the case may be, only in the manner prescribed in this article.

"3. The commission may on its own initiative or on complaint of any person, including any public official or agency, institute proceedings to revoke, cancel or suspend any license or registration after a hearing at which the licensee or registrant and any person making such complaint shall be given an opportunity to be heard, provided that any order of the commission revoking, cancelling or suspending any license or registration shall not become effective until 15 days subsequent to the serving of notice thereof upon the licensee or registrant unless in the opinion of the commission the continuance of the license or registration for such period would be inimicable to the public peace or safety. Such hearing shall be held in such manner and upon such notice as may be prescribed by the rules of the commission, but such notice shall be of not less than 10 days and shall state the nature of the complaint.

"4. Pending the determination of such hearing pursuant to section 3 the commission may temporarily suspend a license or registration if in the opinion of the commission the continuance of the license or registration for such period is inimicable to the public peace or safety.

"5. The commission, or such member, officer, employee or agent of the commission as may be designated by the commission for such purpose, shall have the power to issue subpoenas throughout both States to compel the attendance of witnesses and the giving of testimony or production of other evidence and to administer oaths in connection with any such hearing. It shall be the duty of the commission or of any such member, officer, employee or agent of the commission designated by the commission for such purpose to issue subpenas at the request of and upon behalf of the licensee, registrant or applicant. The commission or such person conducting the hearing shall not be bound by common law or statutory rules of evidence or by technical or formal rules of procedure in the conduct of such hearing.

"6. Upon the conclusion of the hearing, the commission shall take such action upon such findings and determination as it deems proper and shall execute an order carrying such findings into effect. The action in the case of an application for a license or registration shall be the granting or denial thereof. The action in the case of a licensee shall be revocation of the license or suspension thereof for a fixed period or reprimand or a dismissal of the charges. The action in the case of a registered longshoreman shall be dismissal of the charges, reprimand or removal from the longshoremen's register for a fixed period or permanently.

"7. The action of the commission in deny ing any application for a license or in refusing to include any person in the longshoremen's register under this compact or in suspending or revoking such license or removing any person from the longshoremen's register or in reprimanding a licensee or registrant shall be subject to judicial review by a proceeding instituted in either State at the instance of the applicant, licensee or registrant in the manner provided by the law of such State for review of the final decision or action of administrative agencies of such State: Provided however, That notwithstanding any other provision of law the court shall have power to stay for not more than 30 days an order of the commission suspending or revoking a license or removing a longshoreman from the longshoremen's register.

ARTICLE XII

"Employment information centers

"1. The States of New Jersey and New York hereby find and declare that the method of employment of longshoremen and port watchmen in the port of New York district, commonly known as the 'shapeup,' has resulted in vicious and notorious abuses, of which such employees have been the principal victims. There is compelling evidence that the 'shapeup' has permitted and encouraged extortion from employees as the price of securing or retaining employment and has subjected such employees to threats of violence, unwilling joinder in unauthorized labor disturbances and criminal activities on the waterfront. The 'shapeup' has thus resulted in a loss of fundamental rights and liberties of labor, has impaired the economic stability of the port of New York district and weakened law enforcement therein. It is the sense of the legislatures of the States of New Jersey and New York that these practices and conditions must be eliminated to prevent grave injury to the welfare of waterfront laborers and to the people at large and that the elimination of the 'shapeup' and the establishment of a system of employment information centers are necessary to a solution of these public problems.

"2. The commission shall establish and maintain one or more employment information centers in each State within the port of New York district at such locations as it may determine. No person shall, directly or indirectly, hire any person for work as a longshoreman or port watchman within the port of New York district, except through such particular employment information center or centers as may be prescribed by the commission. No person shall accept any employment as a longshoreman or port watchman within the port of New York district, except through such an employment information center. At each such employment information center the commission shall keep and exhibit the longshoremen's register and any other records it shall determine to the end that longshoremen and port watchmen shall have the maximum information as to available employment as such at any time within the port of New York district and to the end that employers shall have an adequate opportunity to fill their requirements of registered longshoremen and port watchmen at all times.

"3. Every employer of longshoremen or port watchmen within the port of New York district shall furnish such information as may be required by the rules and regulations prescribed by the commission with regard to the name of each person hired as a longshoreman or port watchman, the time and place of hiring, the time, place and hours of work, and the compensation therefor.

"4. All wage payments to longshoremen or port watchmen for work as such shall be made by check or cash evidenced by a written voucher receipted by the person to whom such cash is paid. The commission may cashing such checks. arrange for the provision of facilities for

"ARTICLE XIII

"Expenses of administration

"1. By concurrent legislation enacted by their respective legislatures, the two States may provide from time to time for meeting the commission's expenses. Until other provision shall be made, such expense shall be met as authorized in this article.

"2. The commission shall annually adopt a budget of its expenses for each year. Each budget shall be submitted to the Governors of the two States and shall take effect as submitted: Provided, That either Governor may within 30 days disapprove or reduce any item or items, and the budget shall be adjusted accordingly.

"3. After taking into account such funds as may be available to it from reserves, Fed

eral grants or otherwise, the balance of the commission's budgeted expenses shall be assessed upon employers of persons registered or licensed under this compact. Each such employer shall pay to the commission an assessment computed upon the gross payroll payments made by such employer to longshoremen, pier superintendents, hiring agents, and port watchmen for work or labor performed within the port of New York district, at a rate, not in excess of 2 percent, computed by the commission in the following manner: the commission shall annually estimate the gross payroll payments to be made by employers subject to assessment and shall compute a rate thereon which will yield revenues sufficient to finance the commission's budget for each year. Such budget may include a reasonable amount for a reserve but such amount shall not exceed 10 percent of the total of all other items of expenditure contained therein. Such reserve shall be used for the stabilization of annual assessments, the payment of operating deficits and for the repayment of advances made by the two States.

"4. The amount required to balance the commission's budget, in excess of the estimated yield of the maximum assessment, shall be certified by the commission, with the approval of the respective governors, to the legislatures of the 2 States, in proportion to the gross annual wage payments made to longshoremen for work in each State within the port of New York district. The legislatures shall annually appropriate to the commission the amount so certified.

"5. The commission may provide by regulation for the collection and auditing of assessments. Such assessments hereunder shall be payable pursuant to such provisions for administration, collection, and enforcement as the States may provide by concurrent legislation. In addition to any other sanction provided by law, the commission may revoke or suspend any license held by any person under this compact, or his privilege of employing persons registered or licensed hereunder, for nonpayment of any assessment when due.

"6. The assessment hereunder shall be in lieu of any other charge for the issuance of licenses to stevedores, pier superintendents, hiring agents and port watchmen or for the registration of longshoremen or use of an employment information center. The commission shall establish reasonable procedures for the consideration of protests by affected employees concerning the estimates and computation of the rate of assessment.

"ARTICLE XIV

"General violations; prosecutions; penalties "1. The failure of any witness, when duly subpenaed to attend, give testimony or produce other evidence, whether or not at a hearing, shall be punishable by the Superior Court in New Jersey and the Supreme Court in New York in the same manner as said failure is punishable by such court in a case therein pending.

"2. Any person who, having been sworn or affirmed as a witness in any such hearing, shall wilfully give false testimony or who shall wilfully make or file any false or fraudulent report or statement required by this compact to be made or filed under oath, shall be guilty of a misdemeanor, punishable by a fine of not more than $1,000 or imprisoned for not more than 1 year or both.

"3. Any person who violates or attempts or conspires to violate any other provision of this compact shall be punishable as may be provided by the 2 States by action of the legislature of either State concurred in by the legislature of the other.

"4. Any person who interferes with or impedes the orderly registration of longshoremen pursuant to this compact or who conspires to or attempts to interfere with or impede such registration shall be punishable as may be provided by the 2 States by action

of the legislature of either State concurred in by the legislature of the other.

"5. Any person who directly or indirectly inflicts or threatens to inflict any injury,

damage, harm or loss or in any other manner practices intimidation upon or against any person in order to induce or compel such person or any other person to refrain from registering pursuant to this compact shall be punishable as may be provided by the 2 States by action of the legislature of either State concurred in by the legislature of the other.

"6. In any prosecution under this compact, it shall be sufficient to prove only a single act (or a single holding out or attempt) prohibited by law, without having to prove a general course of conduct, in order to prove a violation.

"ARTICLE XV

"Collective bargaining safeguarded

"1. This compact is not designed and shall not be construed to limit in any way any rights granted or derived from any other statute or any rule of law for employees to organize in labor organizations, to bargain collectively and to act in any other way individually, collectively, and through labor organizations or other representatives of their own choosing. Without limiting the generality of the foregoing, nothing contained in this compact shall be construed to limit in any way the right of employees to strike.

"2. This compact is not designed and shall not be construed to limit in any way any rights of longshoremen, hiring agents, pier superintendents or port watchmen or their employers to bargain collectively and agree upon any method for the selection of such employees by way of seniority, experience, regular gangs or otherwise; provided, that such employees shall be licensed or registered hereunder and such longshoremen and port watchmen shall be hired only through the employment information centers established hereunder and that all other provisions of this compact be observed.

"ARTICLE XVI

"Amendments; construction; short title "1. Amendments and supplements to this compact to implement the purposes thereof may be adopted by the action of the legislature of either State concurred in by the legislature of the other.

"2. If any part or provision of this compact or the application thereof to any person or circumstances be adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision or application directly involved in the controversy in which such judgment shall have been rendered and shall not affect or impair the validity of the remainder of this compact or the application thereof to other persons or circumstances and the 2 States hereby declare that they would have entered into this compact or the remainder thereof had the invalidity of such provision or application thereof been apparent.

"3. In accordance with the ordinary rules for construction of interstate compacts this compact shall be liberally construed to eliminate the evils described therein and to effectuate the purposes thereof.

"4. This compact shall be known and may be cited as the 'Waterfront Commission Compact.'"

SEC. 2. The right to alter, amend, or repeal this act is hereby expressly reserved.

INVESTIGATION OF CERTAIN PROCEDURES OF THE INTERIOR DEPARTMENT AND THE FEDERAL POWER COMMISSION

Mr. MAGNUSON. Mr. President, on behalf of myself and the Senator from

Oregon [Mr. MORSE], I ask unanimous consent to submit, for appropriate reference, a resolution providing for an investigation of the practices and procedures of the Federal Power Commission in considering applications for licenses for hydroelectric development.

The PRESIDING OFFICER. Without objection, the resolution will be received and appropriately referred.

The resolution (S. Res. 142), submitted by Mr. MAGNUSON (for himself and Mr. MORSE), was received and referred to the Committee on Interstate and Foreign Commerce, as follows:

Whereas the Federal Power Act specifies

certain requirements of applicants for licenses to construct hydroelectric projects, and the Federal Power Commission, pursuant to authority conferred by such act, has promulgated certain rules and regulations governing such applicants and their applications; and

Whereas the Idaho Power Co., a Maine corporation, has applications before the Federal Power Commission for licenses to construct proposed projects numbered 1971, 2132, and 2133, in the Hells Canyon stretch of the Snake River (Idaho); and

Whereas hearings on these applications are now proceeding before the Federal Power Commission; and

Whereas serious questions have been raised as to whether the Federal Power Commission, in the conduct of these hearings, has failed to conform to its own published rules and regulations promulgated pursuant to such act, which rules and regulations were designed to protect the public interest by providing, among other things, that affected parties would be accorded a full and fair opportunity to prepare and present all sides and alternatives of the question at issue; and

Whereas intervenors in the public interest in the aforesaid hearings are affected parties and include: Eight Washington State public utility districts, and the National Hells Canyon Association, Inc., comprising the Oregon State Federation of Labor, Washington Public Utility Districts Association, Idaho-Oregon Hells Canyon Association, Oregon State Grange, Montana Rural Electric Cooperative Association, Idaho Rural Electric Cooperative, Inc., Washington State Grange, the Columbia River Development League, Washington State Federation of Labor, Oregon State Industrial Union Council, Northwest Public Power Association, Oregon Farmers Union, Idaho State Federation of Labor, and others; and

Whereas the Secretary of the Interior on May 5, 1953, withdrew the Department of the Interior from the hearings as an intervenor in the public interest; and

Whereas this action by the Secretary of the Interior threw upon the remaining intervenors, above cited, additional burdens in preparing and presenting proposals for full development of the Hells Canyon stretch of the Snake River in the public interest; and

Whereas reports pertinent to proposals for full development, prepared under Government contract by independent engineers of high standing, were withheld by the Department of the Interior until the very eve of the current hearings; and

Whereas the Idaho Power Co., on May 20, 1953, filed two new applications, supplement

ing their original application of December 15,

1950; and

Whereas on May 27, 1953, the Federal Power Commission ordered consolidated hearings on all three applications; and

Whereas without participation in the public interest by the Secretary of the Interior in these proceedings, a further burden was placed upon the intervenors above cited;

and

Whereas despite these facts the Commission has insisted that the hearings on these

applications begin on July 7, 1953, as scheduled, despite requests by above-cited intervenors for a 90-day continuance to give them opportunity to analyze the Idaho Power Co.'s new proposals and the engineering reports belatedly made available to intervenors: Now, therefore, be it

Resolved, That the Senate Committee on Interstate and Foreign Commerce, or any duly authorized subcommittee thereof, is

authorized and directed to make a full and

complete investigation and study of the practices and procedures followed by the Federal Power Commission in considering applications for licenses under the Federal Power Act for proposed hydroelectric developments, and in connection therewith the

responsibilities of the Secretary of the In

terior to participate in the hearings on such applications for the purpose of protecting the public interest in the water resources of the Nation. In making such study and investigation the committee or subcommittee shall devote particular attention to (1) the practices and procedures followed by the Commission, including compliance or noncompliance with its own procedural regulations, in considering the applications filed with the Commission by the Idaho Power Co. for licenses for proposed hydroelectric developments on the Snake River, Idaho, known as the Oxbow, Hells Canyon, and Brownlee developments, and (2) the action of the Secretary of the Interior in withdrawing his intervention in the proceedings involving such applications. Such study and investigation shall be made with a view toward determining whether or not it would be advisable for the Congress to enact any legislation with respect to such practices and procedures and the duties of the Secretary of the Interior in order to insure that in the consideration and final adjudication of applications for licenses under the Federal Power Act for proposed hydroelectric developments the public interest in the development of the water resources of the Nation will be adequately protected.

SEC. 2. The committee shall report to the Senate at the earliest practicable date, but not later than January 10, 1954, the results of the investigation, together with such recommendations for legislation is it may deem advisable.

SEC. 3. For the purposes of this resolution, the committee, or any duly authorized subcommittee thereof, is authorized to employ upon a temporary basis such technical, clerical, and other assistants as it deems advisable. The expenses of the committee under this resolution, which shall not exceed $20,000, shall be paid from the contingent fund of the Senate upon vouchers approved by the chairman of the committee, or subcommittee, as the case may be.

Mr. MAGNUSON. Mr. President, in submitting the resolution, which calls for an investigation of the procedures of the Department of the Interior and the Federal Power Commission in connection with proposed projects in the Hells Canyon area of the Snake River, I wish to. say that in my opinion certain procedures in this matter have been a denial of public rights, and have been weighted to the great advantage of the applicant power company, a Maine corporation.

Federal statutes and rules and regulations of the Commission itself have been waived or seemingly ignored by the Commission, to the benefit of the applicant.

Interested parties, adverse to the applicant, have not been allowed to prepare and make a full presentation of their position; there was even a denial of a request to make an oral argument on the motion for a continuance.

Reports by independent engineers, prepared at taxpayers' expense under

Government contract, and directly bearing on proposed projects in the Hells Canyon area of the Snake River, were withheld by the Secretary of the Interior over a period of months, and until almost the eve of hearings.

Legal assistance has been withheld by the Department of the Interior.

In short, the current proceedings have aspects of an unusual quasi-judicial body, which makes its own house rules as it goes along.

Mr. President, I am not talking about the issue of public versus private power. I am talking about procedures of the Department of the Interior and the Federal Power Commission, and whether their conduct in the present proceedings is of such nature so as to enable the making of a determination, in the public interest, of the merits of the pending application, or whether it is such as to thwart the making of such a determination in the public interest.

That is the purpose of this resolution and the purpose of the proposed investigation.

Let me review kriefly the sequence of events that have led up to the present time, when hearings are in progress before the Federal Power Commission.

Application for a license to build a small dam on the Snake River, at Oxbow, was filed by the applicant company with the Federal Power Commission on December 15, 1950. Previously, in June

1947, it had applied for a preliminary permit.

The Federal Power Commission designated the application project No. 1971. No hearings were scheduled for several years. In July 1952, the then Secretary of the Interior intervened; and in the same month hearings were held on project No. 1971 at Baker, Oreg., and at Boise, Idaho. The hearing was recessed on July 17, 1952.

Prior to 1953, there were subsequent recesses and suspensions, some at the instance of applicant company.

On April 30, 1953, the Commission set July 7 as the date for resumption of hearings on project No. 1971.

On May 5, Secretary McKay, as stated earlier, withdrew as an intervenor, thus abdicating a responsibility to serve the public interest.

On May 6, the day following the McKay decision, the applicant company held its annual meeting at Augusta, Maine, and apparently at that meeting decided to file additional applications for two small dams on the Snake River, one of which it designated as Hells Canyon, and the other as Brownlee Dam.

Let me bring out at this point that the applicant company's proposed Hells Canyon Dam has no relation to the large multipurpose dam at Hells Canyon that had been advocated by the Department of Interior prior to Mr. McKay's appointment as Secretary. They are separate and distinct projects. The one proposed by applicant company is a small dam. The one long advocated by Federal agencies is a great, multipurpose dam.

On May 15, 10 days following the McKay withdrawal, and 9 days following its annual meeting at Augusta, Maine, the applicant company filed applica

tions with the Federal Power Commission for licenses to construct the two additional small dams.

One of them, I understand-and this amuses me-is designated "Hells Canyon."

For some reason no public announcement of the new applications was made by the Federal Power Commission until May 20, 5 days later. The announcement designated the new projects as Nos. 2132 and 2133.

In the meantime, however, on May 19, or the day prior to make public the two new applications, the Federal Power Commission issued an order permitting Secretary McKay to carry out his decision of May 5, and to formally withdraw as intervenor.

On May 27, the Commission announced that it was consolidating the new applications, which had been made public only a week before, with the original application.

It had, indeed, been an amazing sequence of events. Beginning with May 5, when Secretary of the Interior McKay withdrew as an intervenor in the public interest, I cannot recall so many coincidental actions within so short a space of time. Had the timing of this sequence of events been prearranged, and I am not implying that it was, it could not have achieved more meticulous clockwork.

Nor do I intimate that up to this time the Federal Power Commission had deviated from normal procedure. Several applications by one company are frequently consolidated for hearing, with time allowed for interested parties to prepare briefs and arguments.

However, to the injury of interested parties in the Pacific Northwest, this has not been done in the present proceeding, and petitions, requests, and motions for a continuance to give these parties opportunity to prepare have brusquely been denied.

I should call to the attention of the Senate at this time that the Pacific

Northwest, including the State of Washington which I represent, has many organizations that for many years have been concerned over the applicant Idaho Power Co.'s project to construct a small, run-of-the-river dam on the Snake River at Oxbow, which they have considered would be a dog-in-the-manger dam preventing full development of our water resources for flood control, navigation, electric energy, reclamation, and other purposes.

These organizations, prior to Interior's abdication of responsibility, had looked to the Department to make presentations in behalf of the public interest.

They have been prepared to intervene in the public interest themselves in the matter of the proposed single dam at Oxbow. They were not, however, prepared for the sudden surprise consolidation of three applications, two of them new ones only 1 week old.

Had the Secretary of Interior, the Federal Power Commission and the Idaho Power Co. acted in concert and by design, they could hardly have found a method more adverse to organizations and bodies desiring to intervene in their own behalf in the public interest.

However, they did find one. On June 1, 3 days after FPC announced the consolidation of hearings the Northwest Public Power Association filed a motion with the Commission for a continuance of the scheduled July 7 hearings for 90 days to enable it to "prepare technological and economic data required by consolidation of proceedings" and "in order adequately to defend the interests of this intervenor and the public interest."

Then, even after that, I, personally, in company with my colleague, the Senator from Washington [Mr. JACKSON], the Senator from Montana [Mr. MURRAY), the Senator from Alabama [Mr. HILL), the Senator from Tennessee [Mr. KEFAUVER], and the Senator from Oregon [Mr. MORSE], requested the FPC to grant this 90-day postponement in the interest of fair play to all parties and to the people of the country. These requests, too, were ignored.

On June 18 the petition was denied. To recapitulate, the Federal Power Commission started out, in effect, with one deck of cards, put in two new decks, shuffled the cards, and then refused to give interested parties and intervenors time and opportunity to study the two new decks before it started its game.

Applicant company, which supplied the decks, of course had had ample time to prepare them and so, of course, were thoroughly conversant with them.

The Federal Power Commission ac

cepted the two new decks as submitted without, it appears, regard to its own rules and regulations, and substituting, instead, its own house rules to meet a rather remarkable situation.

Such methods aroused, and properly so I think, many Pacific Northwest organizations concerned with the development of water resources for the maximum benefit of the region and its people.

On the same date the Federal Power

Commission denied the petition of the

Northwest Public Power Association, these organizations incorporated as the National Hells Canyon Association The association was denied an opportunity to prepare and to present its case.

The national association comprises the following groups and federations.

Oregon: Oregon State Grange, Oregon State Federation of Labor, Oregon State Industrial Union Council, Oregon Farmers Union.

This list comprises, I would say, about the most substantial elements of the socalled agricultural and labor interests in the entire State of Oregon.

Washington: Washington State Grange, Washington Public Utility Districts Association, Washington State Federation of Labor.

I may say all of these men are elected by the people to serve as commissioners of a particular utility district.

Idaho: Idaho-Oregon Hells Canyon Association, Idaho State Federation of Labor, Idaho Rural Electric Cooperative, Inc.

Montana: Rural Electric Cooperative Association.

Regional: The Columbia River Development League, Northwest Public Power Association.

The National Hells Canyon Association-the association that was rebuffed