established by such representative, for the sole and exclusive benefit of the employees of such employer, and their families and dependents (or of such employees, families, and dependents jointly with the employees of other employers making similar payments, and their families and dependents): Provided, That (A) such payments are held in trust for the purpose of paying, either from principal or income or both, for the benefit of employees, their families and dependents, for medical or hospital care, pensions on retirement or death of employees, compensation for injuries or illness resulting from occupational activity or insurance to provide any of the foregoing, or unemployment benefits or life insurance, disability and sickness insurance, or accident insurance; (B) the detailed basis on which such payments are to be made is specified in a written agreement with the employer, and employees and employers are equally represented in the administration of such fund, together with such neutral persons as the representatives of the employers and the representatives of employees may agree upon and in the event the employer and employee groups deadlock on the administration of such fund and there are no neutral persons empowered to break such deadlock, such agreement provides that the two groups shall agree on an impartial umpire to decide such dispute, or in event of their failure to agree within a reasonable length of time, an impartial umpire to decide such dispute shall, on petition of either group, be appointed by the district court of the United States for the district where the trust fund has its principal office, and shall also contain provisions for an annual audit of the trust fund, a statement of the results of which shall be available

for inspection by interested persons at the principal office of the trust fund and at such other places as may be designated in such written agreement; and (C) such payments as are intended to be used for the purpose of providing pensions or annuities for employees are made to a separate trust which provides that the funds held therein cannot be used for any purpose other than paying such pensions or annuities; or (6) with respect to money or other thing of value paid by any employer to a trust fund established by such representative for the purpose of pooled vacation, holiday, severance or similar benefits, or defraying costs of apprenticeship or other training programs: Provided, That the requirements of clause (B) of the proviso to clause (5) of this subsection shall apply to such trust funds.

"(d) Any person who wilfully violates any of the provisions of this section shall, upon conviction thereof, be guilty of a misdemeanor and be subject to a fine of not more than $10,000 or to imprisonment for not more than one year, or both.

"(e) The district courts of the United States and the United States courts of the Territories and possessions shall have jurisdiction, for cause shown, and subject to the provisions of section 17 (relating to notice to opposite party) of the Act entitled "An Act to supplement existing laws against unlawful restraints and monopolies, and for other purposes," approved October 15, 1914, as amended (U. S. C., title 28, sec. 381), to restrain violations of this section, without regard to the provisions of sections 6 and 20 of such Act of October 15, 1914, as amended (U. S. C., title 15, sec. 17, and title 29, sec. 52), and the provisions of the Act entitled "An Act to amend the Judicial Code and to define and

limit the jurisdiction of courts sitting in equity, and for other purposes, approved March 23, 1932 (U. S. C., title 29, secs. 101-115).

"(f) This section shall not apply to any contract in force on the date of enactment of this Act, until the expiration of such contract, or until July 1, 1948, whichever first occurs.

"(g) Compliance with the restrictions contained in subsection (c) (5) (B) upon contributions to trust funds, otherwise lawful, shall not be applicable to contributions to such trust funds established by collective agreement prior to January 1, 1946, nor shall subsection (c) (5) (A) be construed as prohibiting contributions to such trust funds if prior to January 1, 1947, such funds contained provisions for pooled vacation benefits.

BOYCOTTS AND OTHER UNLAWFUL

COMBINATIONS

"SEC. 303. (a) It shall be unlawful, for the purpose of this section only, in an industry or activity affecting commerce, for any labor organization to engage in any activity or conduct defined as an unfair labor practice in section 8(b)(4) of the National Labor Relations Act, as amended.

"(b) Whoever shall be injured in his business or property by reason of any violation of subsection (a) may sue therefor in any district court of the United States subject to the limitations and provisions of section 301 hereof without respect to the amount in controversy, or in any other court having jurisdiction of the parties, and shall recover the damages by him sustained and the cost of the suit.

RESTRICTION ON POLITICAL

CONTRIBUTIONS

"SEC. 304. Section 313 of the Federal Corrupt Practices Act, 1925

(U. S. C., 1940 edition, title 2, sec. 251; Supp. V, title 50, App., sec. 1509), as amended, is amended to read as follows:

"SEC. 313. It is unlawful for any national bank, or any corporation organized by authority of any law of Congress, to make a contribution or expenditure in connection with any election to any political office, or in connection with any primary election or political convention or caucus held to select candidates for any political office, or for any corporation whatever, or any labor organization to make a contribution or expenditure in connection with any election at which Presidential and Vice Presidential electors or a Senator or Representative in, or a Delegate or Resident Commissioner to Congress are to be voted for, or in connection with any primary election or political convention or caucus held to select candidates for any of the foregoing offices, or for any candidate, political committee, or other person to accept or receive any contribution prohibited by this section. Every corporation or labor organization which makes any contribution or expenditure in violation of this section shall be fined not more than $5,000; and every officer or director of any corporation, or officer of any labor organization, who consents to any contribution or expenditure by the corporation or labor organization, as the case may be, in violation of this section shall be fined not more than $1,000 or imprisoned for not more than one year, or both. For the purposes of this section 'labor organization' means any organization of any kind, or any agency or employee representation committee or plan, in which employees participate and which exists for the purpose, in whole or in part, of dealing with employers concerning griev

ances, labor disputes, wages, rates of pay, hours of employment, or conditions of work."

STRIKES BY GOVERNMENT EMPLOYEES

"SEC. 305. It shall be unlawful for any individual employed by the United States or any agency thereof including wholly owned Government corporations to participate in any

strike. Any individual employed by the United States or by any such agency who strikes shall be discharged immediately from his employment, and shall forfeit his civil service status, if any, and shall not be eligible for reemployment for three years by the United States or any such agency.

"SEC. 501. When used in this Act“(1) The term "industry affecting commerce" means any industry or activity in commerce or in which a labor dispute would burden or obstruct commerce or tend to burden or obstruct commerce or the free flow of commerce.

"(2) The term "strike" includes any strike or other concerted stoppage of work by employees (including a stoppage by reason of the expiration of a collective-bargaining agreement) and any concerted slowdown or other concerted interruption of operations by employees.

"(3) The terms "commerce,” “labor disputes," "employer,” “employee," "labor organization," "representative," "person," and "supervisor" shall have the same meaning as when used in the National Labor Relations Act as amended by this Act.

SAVING PROVISION

shall be construed to require an individual employee to render labor or service without his consent, ror shall anything in this Act be construed to make the quitting of his labor by an individual employee an illegal act; nor shall any court issue any process to compel the performance by an individual employee of such labor or service, without his consent; nor shall the quitting of labor by an employee or employees in good faith because of abnormally dangerous conditions for work at the place of employment of such employee or employees be deemed a strike under this Act.

SEPARABILITY

"SEC. 503. If any provision of this Act, or the application of such provision to any person or circumstance, shall be held invalid, the remainder of this Act, or the application of such provision to persons or circumstances other than those as to which it is held invalid, shall not be affected

On March 24, 1958, the McClellan Committee issued its first Interim Report (Senate Report No. 1417, 85th Congress, 2d Session) in which the findings of the Committee were summarized as follows:

"(1) There has been a significant lack of democratic procedures in the unions studied:

(a) Constitutions have been perverted or ignored.

(b) One-man dictatorships have thrived.

(c) Through fear, intimidation, and violence, the rank-and-file member has been shorn of a voice in his own union affairs, notably in financial matters.

(d) Use of the secret ballot has been denied in many cases.

(2) The international unions surveyed by this committee have flagrantly abused their power to place local unions under trusteeship or supervisorship:

(a) Some trusteeships have been baselessly imposed.

(b) Some have lasted for as long as 30 years.

(c) Rank-and-file efforts to throw off such shackles have been ignored, rejected, and sometimes met with violence and intimidation.

(d) Locals under trusteeship have been plundered by the very officials entrusted with the management of their affairs.

(e) Locals under trusteeship have been used as pawns in political battles within international unions, often in order to boost the ambitions of particular candidates for high office.

(3) Certain managements have extensively engaged in collusion with unions:

(a) They have paid high union

officials to obtain favored treat

ment by way of "sweetheart" contracts.

(b) They have paid off to obtain inferior contracts which impose substandard working conditions on thousands of workers.

(c) They have connived with "approved" unions at under-thetable agreements to permit organizing of their workers to the exclusion of other unions.

(d) Certain companies have granted business concessions and loans to union leaders with whom they want to curry favor.

(e) Trade associations have conspired with unions to achieve industry monopolies.

(f) So-called "whip companies" have been set up to keep rival companies in line, and have been blinked at by unions even when they have themselves broken union rules.

(4) There has been widespread misuse of union funds in the unions studied:

(a) Financial safeguards have been woefully lacking. Audits have been little more than a formal ritual of adding up figures, while failing to probe their veracity or the vital detail behind them.

(b) Financial reports to rankand-file members have often been false, sketchy, and even in these forms largely unavailable for perusal by the membership. There have been no regular means provided whereby the rank-and-file could have access to these reports, and members with the temerity to suggest detailed accounting for their own money have been shouted down and sometimes beaten.

(c) Union officials have en

gaged in the habit of dealing in cash rather than by check. They have failed to submit vouchers for many expenditures, and when vouchers have been turned in they have frequently been false or only vaguely explanatory.

(d) Union officers charged with responsibility for disbursements have often signed checks in blank for their superiors, with no knowledge of or request for information as to the purpose for which the funds were drawn.

(e) With these incredibly loose practices, the misuse of union funds, including outright thefts and "borrowings" for personal profit, has totaled upwards of $10 million in union-dues money—an average of $5 out of the pocket of every member of the unions covered in this report.

(f) Even in the case of publicized gifts to union officials, the recipients have not declared them for income-tax purposes, while the donors (frequently employers) have written them off as deductible business expenses.

(g) Destruction of financial records and cancelled checks has been rife, often coincidentally with the approach of committee investigators.

(h) Union officials have received flat expense allowances often in excess of demonstrated needs. Even in the absence of evidence that these moneys were used for legitimate union purposes, they were not recorded as income in the filing of tax returns.

(i) Loans of union funds have gone to favored officers when no such opportunities have been available to rank-and-file members. Union loans have also been made indiscriminately to corporations, to personal friends of union officials,

and to individuals of low repute unable to obtain credit from banks and lending institutions.

(j) Tax-exempt union funds have been used to bring profit either to the union or to its officials in sharp violation of the laws governing tax-exempt organizations. As pointed out to the Senate Permanent Subcommittee on Investigations, the Internal Revenue Service at least when the committee's investigation began, did not check on union funds to determine violations of the tax-exempt statutes.

(5) Violence in labor-management disputes, widely regarded as a relic of the organizing era of the thirties, still exists to an extent where it may be justifiably labeled a crime against the community:

(a) These acts of violence have often been committed by top officers of local unions, or by goons and thugs hired for the purpose.

(b) Higher union authorities have looked the other way when violent acts have been perpetrated, refusing to discipline even those found guilty by law of such acts.

(6) Certain managements and their agents have engaged in a number of illegal and improper activities in violation of the National Labor Relations Act, as amended in 1947 (the Taft-Hartley law):

(a) They have indulged in a practice, widely considered outmoded, of using labor spies.

(b) They have set up "spontaneous" employee committees, "vote no" committees, and "morale" committees to ferret out employee attitudes towards unions.

(c) They have engaged in reprisals against employees discovered to have union sympathies.

(d) They have forced employees to join unions without ascer