chase or by rental at the election of the Constructing Quartermaster for any equipment retained. The Supervising Engineer hereby agrees that such payments when made shall constitute full settlement of all claims of the Supervising Engineer against the Constructing Quartermaster and the United States or either of them for money claimed to be due to the Supervising Engineer for any reason whatsoever. When the Constructing Quartermaster shall have performed the duties incumbent upon him under the provisions of this article the Constructing Quartermaster shall thereafter be entirely released and discharged of and from any and all demands, actions, or claims of any kind upon the part of the Supervising Engineer hereunder or account hereof. 13. Abandonment of work by the Constructing Quartermaster.—If conditions should arise which, in the opinion of the Constructing Quartermaster, make it advisable or necessary to cease work under this contract, the Constructing Quartermaster may abandon the work and terminate this contract. The Constructing Quartermaster shall pay to the Supervising Engineer such an amount of money on account of the unpaid balance of the cost of the work to the Supervising Engineer and of his fee as will result in the Supervising Engineer receiving full reimbursement for the cost of the work to him up to the time of such abandonment, plus a fee computed in the same manner as that specified in the previous article, including therein the release of the Constructing Quartermaster and of the United States from further obligation to the Supervising Engineer. 14. No participation in profits by Government officials.-No Member or Delegate to Congress, or Resident Commissioners, nor any other person belonging to or employed in the military service of the United States, is or shall be admitted to any share or part of this contract, or to any benefit that may arise therefrom; but this article shall not apply to this contract so far as it may be approved within the operation or exception of section 116 of the act of Congress approved March 4, 1909 (35 stats. 1109). 15. Settlement of disputes.-This contract shall be interpreted as a whole, and the intent of the whole instrument rather than the interpretation of any special clause shall govern. If any doubts or disputes shall arise as to the meaning or interpretation of anything in this contract, or if the Supervising Engineer shall consider himself prejudiced by any decision of the Constructing Quartermaster made under the provisions of Article II hereof, the matter shall be referred for determination to the officer in the Washington headquarters in charge of cantonment construction. If, however, the Supervising Engineer shall feel aggrieved by the decision of said officer, he shall have the right to submit the same to the Secretary of War, whose decision shall be final and binding upon both parties hereto. 16. This contract shall bind and inure to the Supervising Engineer and his successors. It is understood and agreed that wherever the words "Constructing Quar-termaster" are used herein the same shall be construed to include his successor in office and any other person to whom the duties of the Constructing Quartermaster may be assigned by the Secretary of War and any duly appointed representative of the Constructing Quartermaster. Witness the hands of the parties hereto, the date and year first above written, all in triplicate. Supervising Engineer. UNITED STATES OF AMERICA, By Constructing Quartermaster.. EXHIBIT No. 5. Basic papers relative to adjustment and control of wages, hours, and conditions of labor. WAR DEPARTMENT, Washington, June 19, 1917. For the adjustment and control of wages, hours, and conditions of labor in the construction of cantonments, there shall be created an adjustment commission of three persons, appointed by the Secretary of War; one to represent the Army, one the public, and one labor; the last to be nominated by Samuel Gompers, member of the Advisory Commission of the Council of National Defense and president of the American Federation of Labor. As basic standards with reference to each cantonment, such commission shall use the union scales of wages, hours, and conditions in force on June 1, 1917, in the locality where such cantonment is situated. Consideration shall be given to special circumstances, if any, arising after said date which may require particular advances in wages or changes in other standards. Adjustments of wages, hours, or conditions made by such board are to be treated as binding by all parties. NEWTON D. BAKER. SAML. GOMPERS. I agree to this policy for the Navy. AUGUST 10, 1917.. Mr. FRANK MORRISON, JOSEPHUS DANIELS. Secretary American Federation of Labor, Washington, D. C. Re: Cantonment construction labor conditions. JUNE 20, 1917. MY DEAR MR. MORRISON: Confirming our talk over the telephone this afternoon, it must be clearly understood, as a basis for any labor-adjustment machinery, that the Government can not commit itself in any way to the closed shop, and that the conditions in force on June 1, 1917, which are to serve as part of the basic standards. do not include any provisions which have reference to the employment of nonunion labor. In our telephone talk just now I understand that you accede to this view. The word "conditions" is, of course, clearly understood to refer only to the union arrangements in the event of overtime, holiday work, and matters of that kind. This was clearly understood between Mr. Gompers and myself this morning when we agreed that it would not be legally possible at this time to insert an understanding— even so much as a provision--that preference be given to members of organized labor. Very truly yours, Copy to Mr. Gompers. LOUIS B. WEHLE. LOUIS B. WEHLE, [Western Union telegram.] NEW YORK, N. Y., June 22. 901 Munsey Building, Washington, D. C.: Your understanding of the memorandum signed by Secretary Baker and me is right. It had reference to union hours and wages. The question of union shop was not included. SAMUEL GOMPERS. SAMUEL GOMPERS, Esq., President American Federation of Labor, Washington, D. C.: Re: Cantonment construction labor conditions. JUNE 23, 1917. MY DEAR MR. GOMPERS: I acknowledge receipt from you yesterday evening of the following telegram: "LOUIS WEHLE, "901 Munsey Building, Washington, D. C.: "NEW YORK, N. Y., June 22. "Your understanding of the memorandum signed by Secretary Baker and me is right. It had reference to union hours and wages. not included. The question of union shop was "SAMUEL GOMPERS." This completes the record sufficiently for me to be able to deliver the memorandum over to Mr. Secretary Baker. So long as there was a possibility that anyone could misunderstand the intention of the memorandum in connection with the question of the union shop I deemed it best to keep the memorandum undelivered. Of course, the Government could not possibly, under the present state of the law, commit itself in the employment of labor to employing only union labor, or even to give preference to union labor. The consummation of this informal memorandum will, I hope, result beneficially to all parties and be a help to the Government in this emergency. Very truly yours, LOUIS B. WEHLE. WAR DEPARTMENT. Procedure under the memorandum of June 19, 1917, signed by Newton D. Baker und Samuel Gompers. 1. The Cantonment Adjustment Commission will sit at Washington, D. C., unless specially ordered by the Secretary of War to go to the site of a construction. 2. It will obtain full information of union scales of wages, hours and conditions in force on June 1, 1917, in the several localities where cantonments are to be constructed For such labor as is being or will be employed on such work, for this information the commission will rely upon data furnished so far as may be practicable by the Department of Labor. 3. The cantonments will be conveniently distributed and the Secretary of War will for the period of the construction and with the unanimous approval of the commission, appoint for each district a responsible impartial examiner who shall act under the orders of the commission. 4. If a dispute arises which can not be adjusted satisfactorily by the contracting officer at the site and the employees involved, the contracting officer shall issue a provisional order which may be affirmed, reversed, or modified by the adjustment commission. 5. In cases where the provisional order of the contracting officer is not accepted, the actual work of construction shall not be interrupted, but the contracting officer shall notify the member of the commission representing the Army of the matter in dispute, the proposals made by each party for adjustment, and of the provisional order which he has issued. At the same time the member of the commission designated by Mr. Gompers shall obtain from a reliable source a report on the matter in dispute. 6. If the commission is notified that a dispute is not adjusted satisfactorily at the site, or if it learns from other sources that a dispute is in such condition, it will as speedily as possible send an examiner to the site. 7. The examiner shall have authority, acting under the orders of the commission, to mediate between the parties. If he fails in this he shall report promptly and fully to the commission with a recommendation. The examiner shall, if ordered by the commission or by any one of its members, remain at the site to supply any further information that may be asked. 8. The rulings of the commission are binding upon all parties concerned. 9. Notice of a ruling shall be sent to the contracting officer and to the spokesmen of the parties involved in the dispute. 10. The examiner will supervise the application of the commission's rulings with reference to hours, wages, and conditions and with reference to any accounting which may be proper under such ruling. Any change in wages, hours or their application, when finally agreed to, or when finally fixed by the commission, shall for accounting purposes be effective so far as practicable as of the date which may be fixed by the agreement, or by the ruling of the commission. 11. The commission shall have power to make additional regulations in order to achieve the purpose of the memorandum, and shall decide all questions arising under it. [On July 27, 1917, the following supplementary agreement was signed:] "The arrangement for the adjustment of wages, hours and conditions of labor, entered into between the signers of this memorandum, on June 19, 1917, with reference to cantonment construction, may, on order of the Secretary of War, be extended to embrace any other construction work which is now being, or may be from time to time during the war, carried on by the War Department. "NEWTON D. BAKER. "SAMUEL GOMPERS." [On August 8, 1917, acting under this supplementary agreement, the construction of aviation fields was placed within the jurisdiction of the commission.] [On September 4, 1917, the construction of warehouses and storage facilities was placed within the jurisdiction of the commission.] WAR DEPARTMENT, Washington, December 28, 1917. It is hereby directed that all construction work undertaken by the War Department during the present emergency shall be carried out under the arrangement for the adjustment of wages, hours and conditions of labor which was entered into between Mr. Samuel Gompers and myself on June 19, 1917, and which, under a supplementary memorandum signed by the same parties on July 27, 1917, may be extended by me to embrace other construction work under the War Department. BAKER, Secretary of War. Copy to Samuel Gompers, Esq., President American Federation of Labor, Washington, D. C. EXECUTIVE ORDER. Under authority contained in the naval appropriation act approved March 4, 1917 (Public, No. 391, 64th Cong.), whereby it is provided, "That in case of national emergency the President is authorized to suspend provisions of law prohibiting more than eight hours labor in any one day of persons engaged upon work covered by contracts with the United States: Provided further, That the wages of persons employed upon such contracts shall be computed on a basic day rate of eight hours work with overtime rates to be paid for at not less than time and one-half for all hours work in excess of eight hours." it is hereby ordered that the provisions of the act approved June 19, 1912, limiting the hours of daily service of mechanics and laborers on work under contracts to which the United States is a party are suspended with respect to all contracts for ordnance and ordnance stores, and other military supplies and material, and contracts for fortification work, during the pending emergency and until further orders. This order shall take effect from and after this date. THE WHITE HOUSE, 24th March, 1917. WAR DEPARTMENT. In order to settle conflicts and to avoid confusion and delay it has become necessary to secure better administration and enforcement by the War Department of the provisions of law requiring time and a half for overtime work under certain class of Government contracts. To accomplish this end I have detailed Mr. Felix Frankfurter. It will be his duty1. To keep informed as to every phase of the administration of the laws dealing with the eight-hour limitation, and time and a half for overtime work. 2. To advise as to these laws any officer or agency of the department engaged in making contracts or purchases. 3. To make rulings, in cooperation with the Judge Advocate General, on any matter which is part of the administration or enforcement of these. Specifically: (1) What contracts are affected by the laws above mentioned. (2) The interpretation to be placed upon any of the provisions of these laws. (3) The methods of securing the enforcement of these laws. The existing contract-making agencies will retain the powers they now have subject to the control above outlined. It is expected that the necessary betterment in administration and enforcement will largely result from the cooperation of the contracting, purchasing and inspecting officials of the department with Mr. Frankfurter in the exercise of the advisory powers with which he is charged. A copy of the foregoing should be read by every official and agency making contracts or purchases for the War Department, and by the chief or other head of every inspection division or branch making inspections for the department under any of the said contracts or purchases. NEWTON D. BAKER. The above instructions of the Secretary of War (A. G. 230.4421) are furnished for information and guidance. Any questions arising on the subject referred to in connection with contracts of the Quartermaster Corps should be submitted to Mr. Frankfurter, through this office. By authority of the Quartermaster General: CHAS. P. DALY, Captain, M. S., Quartermaster Corps. 182545-20--22 |