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Form P. R n 5 1 1

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REMARKS:

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CHAIRJ/IAN'S OFFICE



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BOARD OF GOVERNORS
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THE

FEDERAL RESERVE SYSTEM

Correspondence
«j»0

Chairman Eccles

From

Kenneth B.

*

Date

P»O«*T

^

Subject: Report o n C I O Convention

General Impressions
I went to Chicago somewhat expecting to find the CIO delegates wildly exuberant over winning the election and demanding payment for their part in it. Therefore, I was surprised to find that
while political action was the main topic of the convention, no demands
for payment were presented nor were the delegates over-confident and
cocky. On the contrary, the general feeling of the group seemed to be
one of satisfaction in their victory, but along with it was a clear
recognition that November 7 *was merely the first round and a long hard
struggle remained ahead.
It was also evident that the leaders and the delegates were
well aware their new political power carried with it real and sobering
responsibilities. Ihe group was very serious-minded and they thoroughly
believed themselves to be merely the instrument through which all people
were to achieve greater freedom and better economic opportunities. It
was repeatedly emphasized that CIO and PAC interests were not limited
to narrow trade union aims but that these organizations wanted to cooperate
with all groups — business, farmers, consumers and others — in advancing
the public interest. This attitude was seen not only in the speeches of
the leaders and in the resolutions adopted but also in the general conduct
and talk of the delegates. Thus the convention endorsed the continuation
of the Political Action Committee as a means for obtaining adoption of
expansionist economic policies. This was the most important single thing
that happened at the convention.
Next in importance was the exceptional degree of unity within
the d O » Biis was evident to a greater extent than in the convention
at Boston two years ago. There was almost no disagreement on major policies. I was a little surprised about this too, since renewal of the no
strike pledge had been passed by a bare majority by the United Autcmobile
Workers in its convention held earlier. However, no dissension developed
over this issue at the CIO convention, in part because of the strong
speech Murray made endorsing renewal. No public official could have
stated the case for renewal of the no strike pledge any more strongly or
frankly than Murray did. He made it clear that the pledge is not a bargaining matter between the nation and organized labor but is a voluntary
sacred obligation of labor. He hit hard at the dishonesty of voting for
renewal in convention only to go home and permit strikes to develop among
their members.




- 2 -

In. connection with the no strike pledge, as ivell as with
many other issues, I was much impressed with Murray's statesmanlike
handling of issues. I was also impressed with the high respect and
affection evident for him among the delegates* In spite of the great
ovation, lasting some 20 minutes, given Hillman, there was no doubt
but that Murray still is number one man in the organization.

Resolutions
The convention passed some lj.O-odd resolutions covering almost
every field of public and union interest. In addition to the major
policy resolutions passed, some of the lesser ones are worth listing in
order to indicate the kinds of issues the organization considers important.
Among the resolutions adopted were*
1) Renewal of the n no strike" pledge, unconditionally, end until full defeat
of both enemies.
2)

Continuation and strengthening of the Political Action Committee as
an independent instrument for political education.

3) Demand for revision of national wage policies to bring wages in line
with the cost of living and to raise the minimum wage standard to

65/ an hour.
L)




Calling for postwar policies and programs designed to achieve employment of 60 million workers. In connection with this resolution a
comprehensive postwar program was presented including:
a) Maintenance of present weekly wage levels,
b) Establishment of guaranteed annual wage systems*
c) Encouragement of expansion of private investment,
d) Assumption by government of responsibility for guaranteeing full
employment through expenditures for regional resource development and other activities.
e) Endorsement of international cooperation along the lines outlined
at Dumbarton Oaks,
f) Enactment of legislation to implement the agreements reached at
Bretton "Woods,
g) Adoption of an adequate reconversion program including:
supplementary Federal unemployment benefits up to a maximum of
$35 & week for the unemployed; retraining of war workers and
veterans; preparation of blueprints for public works; payment
of travel expenses of war workers; and unemployment compensation
for Federal workers.

- 35) Continuing to promote unity between labor and veterans by such
things ass insistence upon full employment; providing in collective bargaining agreements for full seniority for veterans;
continuing to waive payment of union initiation fees for veterans;
and,continuing effort's to modify the Selective Service System1 s
interpretation of veterans1 reemployment rights so as to proidde
greater security to veterans and avoid conflict between veterans
and other -workers.
6) Endorsement of international labor unity through the establishment
of a new international labor body that m i l include all unions of
all free countries.
7) Undertaking, as one of its primary legislative tasks, the urging
of speedy action by Congress on the Wagner-Murray-Dingell Bill for
an expanded Social Security program.
8) Strongly supporting pricef rent and rationing control programs in
order to maintain economic stability, particularly following V-E Day*
9) Setting forth principles for postwar tax policy along the follo?dng
lines:
a) In the reconversion period, retention of current tax rates on
corporation and personal incomes above $5*000 a year to assure
the government adequate revenue; retention of the excess profits
tax for the duration of the war; special tax relief for small
and new business after termination of the European war.
b) Lower taxes on low income groups by raising present personal
exemptions to $2,000 for married couples, $1,000 for single persons,
1500 for each dependent. Repeal present 3 per cent normal tax*
Extend the carry-back, carry-forward principle to personal incones*
Opposed to all forms of sales taxes but in favor of retaining present excise taxes for the duration of the war*
c) Opposed to Hie proposal that all corporate taxes be eliminated in
the postwar period. Strongly opposed to the proposed Constitutional amendment to limit the power of Congress to levy taxes
higher than 25 per cent on incomes.
10.

Continuation of manpower controls on a voluntary basis in contrast to
control by national service legislation.

11«

Re-affirming its opposition to discrimination against negroes and
other minority groups and urging legislation to make the Pair Employment Practices Committee permanent.

12# Endorsing an expanded maternal and child health program and the school
lunch program.




13*

Endorsing legislation to provide Federal aid to States for developing full educational facilities for everyone•

3ij.# Endorsing programs to increase youth security and welfare by stricter
control of employment of minors and by providing opportunity for
youth now in industry to obtain education to the limit of their
quali fi cati ons.
15«

Calling upon Congress to repeal the Smith-Conally Labor Disputes Act.

16«

Requesting the Treasury Department to continue permanently the sale
of Government bonds through the payroll savings plan.

17.

Calling for a Federal program to develop sound forest practices; to
acquire forest lands not suited for private ownership; to develop
forest industries; to formulate work programs for expansion of employment in forest conservation; to develop programs for guaranteed yearround employment for woods workers; and increase the protection of
public forests.

18*

Criticising the Bureau of Labor Statistics, calling for a fulltime
Commissioner in whom organized labor can repose confidence, and
urging a greatly expanded budget for the Bureau of Labor Statistics.

19 • Pledging support for enactment of a Federal law to make anti-Semitism
a crime punishable by imprisonment.
20#

Paying tribute to the farmers for their unparalleled production of
food for victory; supporting the continuation of price guarantees to
farmers to encourage full production; and endorsing agricultural programs designed to provide farm people with social and economic benefits comparable to those enjoyed by city people.

21.

Calling upon Congress to repeal the provision of the Hatch Act which
denies government employees their full rights as American citizens.

22. Endorsing labor management committees and urging their expansion.
23«




Continuing its efforts to obtain legislation to eliminate the poll
tax; to grant the right of suffrage to residents of the District of
Columbia, and to permit all citizens 18 years of age or over the right
to vote#