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As an administrator, I cannot place the Employment Service in California in jeopardy of being out of compliance with the Federal laws by my failure to pursue the avenues of appeal open to me.

To have applied statewide the decisions of the two cases heard in Superior Court, in my opinion, would have placed us clearly out of compliance with the Wagner-Peyser Act and would have immediately opened the way for the Secretary of Labor, were he so inclined, to notify the Governor of such noncompliance, set a date for hearing, and issue his finding.

The impact of noncompliance under the Wagner-Peyser Act is clear: the withdrawal of some $11 million a year of administrative funds which finance our employment service program or, as a corollary, the taking over by the Federal Government of its operation.