118 UNEMPLOYMENT IN THE UNITED STATES 
cepted. In such a condition the bill now provides that the directo: 
general may treat with the governor of the State, pending an agree: 
ment—may treat with the governor of the State to secure the estab- 
lishment of a Federal bureau in that State. This is where the legis. 
lature has not acted, remember, but pending agreement with the 
governor—because the governor may not agree to accept the con- 
dition—it is a somewhat startling proposition, as you gentlemen 
will observe, to turn from the legislature, which alone is charged 
with the declaration of the internal policy of the State with respect 
to the regulation of employment agencies—— 
Mr. CeLLER (interposing). Before you get a misconstruction of 
that, I think it is fair to state that the Government can not go into 
the State without the governor's consent. If you will read that 
carefully, Mr. Emery, you will see that. 
Mr. Emery. Yes; I will be glad to read it. 
Mr. CeLrer. You must have an agreement first with the governor 
That is on page 9. 
Mr. Emery. I am reading page 9. It says that— 
In States where there is a State system of public employment offices, but 
where the State has not complied with the provisions of section 4— 
that is, has not accepted Federal aid— 
in establishing a cooperative Federal and State system of public employment 
offices to be maintained by such officer or board and in such manner as may be 
agreed upon by and between the governor of the State and the director general. 
It does not say that he may not enter the State; it says that he 
may approach the governor, the legislature having failed to act. 
That, I think, is the obvious conclusion to be drawn from the lan- 
guage of the bill, and, of course, that I cheerfully submit to the inter- 
pretation of the committee. But suppose the governor does not 
care to accept the responsibility of undertaking to do what the 
legislature has either failed or refused to do, what then? Does that 
end the matter? No, pending the conclusion of such agreement— 
that is, an agreement with the governor—but for not more than one 
year, the director general may establish and maintain in any such 
state a system of public employment offices under the control of the 
director general. Now that final condition I beg to call to your 
attention, is one in which neither the State legislature has accepted 
the Federal aid, it has failed or refused to act, the governor has not 
reached an agreement with the director general of employment. 
Does the Federal Government then remain within its own jurisdic- 
tion? No, under the terms of this bill you, the Congress of the 
United States, are authorizing and directing him to establish, if in 
his discretion he desires to do so, a Federal system of employment 
offices in that State which already has a system of its own, and which 
eventually, therefore, comes into either competition or conflict with 
the local agencies there established. 
There are the plain terms of the bill, and I am satisfied that a great 
many of the gentlemen who hastily approved this measure and adopted 
resolutions with respect to it, and have told you that everybody 
favors it, have not read those provisions of the bill in which, to an 
extent never before proposed, I submit to you, in congressional legis- 
lation—never has it been suggested that when the State refuses to 
fall for the seductions of Federal aid, the Federal Government