19_37 -.. ·CONG:RESSION~ ~ECORD-HOUSE 779

Thomas J. Hmst, Calumet. co!.n~ITTEE ON INTERSTATE AND FOREIGN COMMERCE Esther L. Hatchett, Gracemont. Mr. LEA. Mr. Speaker, I ask unanimous consent that the Ernest F. Lyon, Hinton. Committee on Interstate and Foreign Commerce may have Elmer J. Solomon, Kingfisher. leave to sit durini the sessions of the House while the com­ Samuel M. Scholl, Lookeba. mittee is holding hearings on H. R. 1668. Thomas L. Wade, Marlow. The SPEAKER. Is there objection to the request of the ~e Garner, Jr., Red Oak. gentleman from California? Douglas Thomas, Ryan. There was no objection. Floyd G. Ransbarger, Verden. EXTENSION OF REMARKS Roy C. Grable, Waukomis. James A. Whelan, Yukon. Mr. CELLER. Mr. Speaker, I ask unanimous consent to extend my remarks in the RECORD in two ·respects, restric­ WISCONSIN tions on present corporation methods, and, ' second, a fed­ Allen G. Wald, Alma. erally controlled pan-American broadcasting station. Andy J. Fogerty, Dresser Junction. The SPEAKER. Is there objection to the request of the Joseph D. McGaver, Fairchild. gentleman from New York? Christ Herman, Jackson. There was no objection. Richard H. Lauson, Kiel. Delia G. Guay, Peshtigo. Mr. MA~RICK. Mr. Speaker, I ask unanimous consent extend my own remarks in the RECORD. John D. Costello, Racine. to Walter J. Amend, Ripon. The SPEAKER. Without objection, it is so ordered. There was no objection. Grover T. Pace, Stanley. INDEPENDENT OFFICES APPROPRIATION BILL, 1937 WITHDRAWAL Mr. WOODRUM. Mr. Speaker, I move that_ the House resolve itself into the Committee of the Whole House on the Executive nomination withdrawn from the Senate February 3 state of the Union for the further consideration of the (legislative day of Feb. 1), 1937 independent offices appropriation bill, and pending that PROMOTION IN THE REGULAR ARMY motion I ask unanimous consent that general debate con­ F'irst Lt. John Castle Hampson, Dental Corps, to be cap­ tinue for such time as may be occupied by myself and the tain, Dental Corps, with rank from February 15,1937. gentleman from Massachusetts [Mr. WIGGLESWORTH] on the bill, and at the conclusion the bill be read under the 5-min­ ute rule. HOUSE OF REPRESENTATIVES The SPEAKER. Is there objection to the request of the gentleman from Virginia? WEDNESDAY, FEBRUARY 3, 1937 There was no objection. The House met at 12 o'clock noon. The motion was agreed to. The Chaplain, Rev. James Shera Montgomery, D. D., Accordingly the House resolved itself into the · Committee offered the following prayer: · ·of the Whole House on the state of the Union, with Mr. Give unto the Lord glory and streJtgth. Give unto the BoLAND of Pennsylvania in the chair. Lord the glory due unto His name; worship the Lord in the The Clerk reported the title of the bill. . beauty of holiness. He will not suffer thy loot to be moved: Mr. WOODRUM. Mr. Chairman, I yield myself 20 min­ He that keepeth thee will not slumber. Behold He that utes. The independent office~ appropriation bill provides keepeth Israel will neither slumb~r nor. sleep. appropriations for .some 32 of the independent establish­ ments of the Government. For the benefit of our new col­ We pray Thee, 0 Lord, that Thou wilt grant Thy blessing leagues, I may say that in this appropriation bill we find upon us, Thy children and the servants of the Republic. groups of governmental bureaus and departments that are Create within us deep desires to purify ourselves, to walk not directly under some Cabiriet officer. They are denomi­ patiently, and to discharge our duties according to the meas­ nated independent offices and establishments, some 32 of ure of our knowledge. Be pleased to bless our President and them, covering a variety of activities, and a wide range of all his advisers; may they be guided through these times, so governmental functions, and carrying an awful lot of money. critical and perilous. Bless every household with light and The bill this year carries a gross amount of $1,046,000,000. gladness. In the name of Jesus. Amen. Before I proceed to discuss the bill I want to express my The Journal of the proceedings of yesterday was read and appreciation to the members of the subcommittee, my approved. Democratic colleagues and my Republican colleagues. The MESSAGES FROM THE PRESIDENT distinguished and able gentleman from Massachusetts [Mr. Sundry messages in writing from the President of the WIGGLESWORTH], the ranking minority member of our com­ United States were communicated to the House by Mr. Latta, lnittee, very graciously, at considerable inconvenience to his one of his secretaries. wh.o also informed the House that on business affairs and to his personal comfort, came down to the following dates the President approved and sigl1ed a bill Washington with me and with my colleague, Mr. FITz­ and joint resolution of the House of the following titles: PATRICK, of New. York, early in pecember, and we began in­ On January 29, 1937: formal hearings on this bill in order to have it ready as H. R.1545. An act to provide for loans to farmers for crop early as possible ih the session. I appreciate that, and ex­ production and harvesting during the year 1937, and for cept for his splendid cooperation and willingness to go other purposes. ahead informally, we could not have been ready today. Also I pause to pay my respects to the clerks of the Appro­ On February 3, 1937: H. J. Res. 81. Joint resolution to create a Joint Colloo-res­ priations Committee. I know of no place in the Govern­ sional Committee on Government Organization. ment service where there is a more efficient, faithful crowd of fellows who are willing to lay aside their own conven!ence EXTENSION OF REMARKS · and personal comfort and work day and night to bring in­ Mr. BOll.,EAU. Mr. Speaker, I ask unanimous consent to formation and facts to the subcommittee chairmen and to extend my remarks in the RECORD by including therein an ·the chairman of our committee for your information and address delivered by my colleague, Mr. BERNARD, of Minne­ guidance: Something was said yesterday about working · sota, against war and fascism at the fourth annual New York overtime in the Government. Here is a group that is work­ City Conference on January 30, 1937. _ . ing overtime and is underpaid, and I want to acknowledge The SPEAKER. Is there objection to the request of the at the beginning the services they render and the services gentleman from Wisconsin? of this young gentleman who is sitting on my left, the clerk There was no objection. of my subcommittee. 780 (JONGRESSlO~AL REPO~D-HOUSE_ FEBRUARY 3. Mr. SNELL. Mr. Chairman, will the gentleman yield? that appropriations are being held down and in many in­ Mr. WOODRUM. Yes. stances reduced. You will ask how we reconcile that with Mr. SNELL. How does the total amount of this appro­ the fact that every year the gross amount of the bill climbs priation bill compare with the one for last year for I sup­ up. pose practically the same services? Thereby· hangs a tale. The reason for that is that every Mr. WOODRUM. There is a gross increase for com­ year this Congress by legislative enactment sets up new parable items of about $60,000,000 in this bill over what it bureaus and new departments. Not only that, but it gives was last year. additional functions and additional duties to bureaus and Mr. LEWIS of Colorado. Mr. Chairman, will the gentle­ departments already set up. man yield? Let us, in a general way, account for this $78,601,558 gross Mr. WOODRUM. Yes. . increase in direct appropriations carried in this bill. In the · Mr. LEWIS of Colorado. Is it not a fact that the figures first place, we find we are doubling the Federal Govern· prepared by the clerks in the Appropriations Committee of ment's contribution to the civil-service retirement fund. We the House are practically infallible? On several occasions have put in the bill this year $26,342,000 more for the Fed· where different opinions were expressed to me as to costs and eral Government's contribution to the retirement fund than expenditures by various departments of the Government, we had last year. on full investigation the figures furniffied by. the clerks of We find we nave the Rural Electrification Administration your .Committee on Appropriations have always been -found this year for a direct appropriation for loans. This is the to be correct. first time that agency has ever come to Congress for a direct Mr. WOODRUM. That is absolutely true. I thank the appropriation for loans. It has received its funds for loans gentleman for his observation. out of emergency allotments heretofore. This year we have Mr. FITZPATRICK. Mr. Chairman, will the gentleman $30,000,000 for loans for that agency. yield? We find there was an increase of $66,800,000 in the Mr. WOODRUM. Yes. amounts allotted to the Social Security Board for grants to Mr. FITZPATRICK. The gentleman from New York [Mr. old-age benefits, insurance, and relief to crippled children. SNELL] asked what the increase was this year over last year So I have already accounted for well over $100,000,000 of for the same services. It is because of increased services and increases. ·new responsibilities created by Congress. As offsets; we find a number of agencies where the appro· Mr. WOODRUM. I am coming to that,-and I should like priations are less than last year. That-table is set out on if I may, to proceed for a few minutes without interruption, i page 3 of the report, if you are sufficiently interested to and then I shall try to answer any questions which gentle­ look at it. men care to ask. The gross amount of the bill is $1,046,- So I say the reason these appropriation bills are more 757,143. Of that gross amount, $60,396,180 is not directly each year is because we create -additional functions and appropriated out of the Treasury, but consists of authoriza­ additional establishments. ·Now let us see about that for tions to establishments of the Government that . finance a moment. themselves, like the FederaL Housing . Administration, the . -We find -in this-bill the Social Security Board, set-up to Home Owners' Loan Corporation, the Reconstruction Finance administer that great humanit~rian purpose of the Presi­ ·corporation, and various other agencies that have the right dent and the administration, to look after the needy people to raise their own funds and have a revolving fund out of of this country: They are just now beginning to come which.they pay their own expenses; but this year for-the first into full operation, ·January 1,· 1937. ·· The committee cut time we required them to come to Congress for authoriZation their- appropriation ·for administrative expense $5,000,000 to use· their own funds for admini~trative m~penses, .and of under what the Budget estimated. -I - am· perfectly frank that billion-and-odd doUars,-$60,396,180· is for authorization to say to you,- and· I · want-to ·make ·it a · matter of· record ~ for. these agencies to use that fund for administrative that I ·am afraid we cut _ th~m · pretty~ d-eep; but -we · hopa purposes . . · · . . · _they will be ·able ·to· get · through~ on the amount· of .money . The .bill is_$4,9.50,000 . under.. the estimates .of -the.Bureau ·we have ·allowed them,- ·which is $18,377,202 , for' adminis­ :of the Budget That may.seem to be a -very small reduction. , trative expenSes. I have had the matter up with the Boal'd~ :Some gentleman . asked on -the floor yesterday,. I think the They have-been-tQ see me since - t~s Qill was ·reported;- Of distinguished .gentleman from Pennsylvania. [Mr. RICH], why ·. course, they were disturbed that -the· committee had , cut the Appropriations Committee. dicl nnt. cut. something· from . $5,000;000. ·off · of what- the · Bureau -of the ·Budget· allowed the Budget estimate. It has been my philosophy of the duty ' them. I .went over the thing with · tP,em and pointed· out of the Committee on Appropriations-and we are just an · that even allowing them $18,000,000, . we were giving them agency of the House-and the duty of the Congress in re­ twice ·as much for 1938 as they had in 1937. They splen­ spect ·to appropriations, that that duty is twofold. First, didly and very graciously said I might state to the Congress to try to conserve public assets, to try to hold down public that they would do the best they could with the funds we expenditures, and yet on the other hand there is a duty no had allotted to them. But, of course, if we find we have cut less important and no less pressing to appropriate adequately them too deep, we will still be here to meet whatever needs for proper governmental operations and functioning. Of they may have for appropriations. That is a new activity. course we could-take a red pencil and shut our eyes and -'I'he Social Security Board, I believe, is as big and as com­ cut millions of dollars from these bills, but we have gone prehensive as all the life-insurance companies in America into the matter carefully and painstakingly with the idea in put together. Just think of that. That is the kind of an mind of trying to conserve the . public assets and yet give organization we have set up. Of course, it -will cost money. funds where needed to carry out the functions of the Gov­ It will be a mounting cost of money, but we must see that ernment established by Congress. If you are sufficiently there is no dissipation of funds or that there is no more interested to read the hearings, you will find that the Bureau appropriated than is necessary to do _the job we have given of the Budget did a pretty good job with the pruning knife them; but, having given them the job, we .must pay . the before the bill ever got to the Congress. They cut pretty freight as we go along. deep and hard in some places. You may be interested to Mr. \VARREN. Mr. Chairman, will the gentleman yield? know that in these estimates of the agencies which come to Mr. WOODRUM. I yield. us this year for the first time ·for the authority to use their Mr. WARREN, I note an increase of $10,000,000 for the own funds for administrative expenses-for instance, the Public Works Administration. Will the gentleman tell the Home Owners' Loan Corporation, the Federal Housing Ad­ committee what that is for? · ministration, the Reconstruction Finance Corporation, and Mr. WOODRUM. It is not an increase. This is the first several others of similar character-there is a reduction in time we have appropriated money for the Public Works the administrative expenses in 1938 of $18,898,340 from Administration for administrative expenses, but the authori­ those incurred in 1937. You will find all through this bill zation is for $10,000,000 administrative expenses for the 1937 CONGRESSIONAL RECORD-HOUSE _781 remainder of this fiscal year. Last year they b.ad $26,000,000. Mr. WOODRUM. There is no question about that; and Of course, their lending powers are gone and they are wind- the members of the Federal Communications Commission ing up their program. _ were on duty 24 hours a day supervising and looking after Mr. WARREN. No part of that appropriation goes to proj­ radio communications throughout that great disaster. ects, does it? Now I shall comment on the Civil Service Commission. Mr. WOODRUM. No part of it goes to projects. They are carried in the bill for $2,350,000 for administrative Mr. WARREN. I would like to say to the gentleman, lest expenses, which is about the appropriation they had for the by my silence I may give consent, that as far as I am con­ current fiscal year. In my judgment, when the committee cerned, I never intend to vote for one more dollar for the comes to consider reorganization of governmental bureaus, Public Works Administration. I think it is shot through with the elimination of useless functions, and try to coordinate gross discriminations and favoritisms, and, as far as North governmental departments for greater efficiency, that in the Carolina is concerned, we think we have had about the Civil Service Commission they will find a fertile field for worst treatment of any State in the Union. As far as I am consideration. concerned, I intend never to vote another dollar to them. [Here the gavel fell.] Mr. WOODRUM. Now we come to the Securities and Mr. WOODRUM. Mr. Chairman, I yield myself 10 addi­ Exchange Commission. I doubt if there is an informed Mem­ tional minutes. ber of the House who would be willing to vote to repeal the Mr. Chairman, I have no fault whatever to find with the law setting up the Securities and Exchange Commission. It Civil Service Commission as at present constituted. I think costs us nearly $4,000,000 for their administrative expenses, they are doing a good job with the tools we have given them but we have given them very important functions to carry to operate with and under the laws by which they are bound; out. Here, again, the Government is stepping into a field of but I want to reecho what I have said before on the floor activity never before occupied by the Federal Government, a of the House; that in my judgment it should be possible field of activity to regulate and control and clean up, if you by some kind of standardized examination to eliminate please, the situation existing in the field of the handling, hundreds of thousands of these examinations that arc held marketing, and control of securities. Undoubtedly, that is all over the country that mean absolutely nothing to the going to be a growing, expanding bureau, but rendering, if citizens, that hold out false hopes of employment, and that you please, great service to the American people . . get us nowhere. The Civil Service Commission now is piled Then we come to the Federal Communications Commission. full of these examinations they have held, because they do A few years ago it was the Federal Radio Commission. We not have the personnel to grade the papers. Some way have enlarged the functions of this Board, giving them juris­ should be found to some extent to standardize certain types diction over telephone and telegraph, and set up this agency of examination under which they could have information to reach out and have control of the communications systems and registers that would be available for different purposes~ in America. I say to you that if you will interest yourself As it is now, if the Federal Securities Exchange Commission enough to find out a little something about the job we have want lawyers, the Civil Service Commission holds an ex­ given those people, touching, as it does, the field of Federal amination for them; if the Federal Communications Com­ communications, of radio, telephone, and telegraph, commu­ mission want lawyers, the Civil Service Commission holds nications with vessels at sea, and so forth, you will find that another examination for them; and so on throughout all we have given them a herculean job to qo. the departments and agencies. It seems to me a standard I know there has been some criticism. My colleagues, the law examination could be given and that the Civil Service gentleman from MassaChusetts [Mr. WIGGLESWORTH] and the Commission could have a card index there showing the gentleman from Massachusetts [Mr. CoNNERY], have ex­ lawyer's name and his various fields of endeavor. This pressed themselves critically, but we must take into consid­ would show the department heads whether he fitted in the eration the magnitude of the job we have given them. They department or not. Examinations could be held and indexes are carried in the bill for $1,604,000 for their administrative could be made in the same way on the clerical and steno­ expenses, some little reduction over what th_ey had last year. graphic forces. I think this presents a wonderful oppor­ Mr. RAYBURN. Mr. Chairman, will the gentleman yield? tunity for some coordination of effort or elimination of Mr. WOODRUM. I yield. duplication that would save a lot of money and bring about Mr. RAYBURN. Is it not true that before the formation so much more efficiency in the selection of Government of the Communications Commission the Interstate Commerce employees. Commission, }laving whatever authority there was to regulate On the floor of the House yesterday my distinguished telegraph and telephone communication, found itself so busy friend, the gentleman from Massachusetts . [Mr. CONNERY], in the exercise of its initial duty, the regulation of carriers said he proposed to move to strike out the phrase "labor­ in interstate commerce, that they had done practically noth­ saving devices" wherever the phrase appears in the bill. ing with reference to this matter? Is it not further a fact He added that he had been informed that the Civil Service that since the Communications Commission has been in exist­ Commissiqn were experimenting with an electric eye for use ence and since the investigation we authorized a year and a in grading certain standard mental tests in order to save half ago of telegraph and telephone companies that by reason time, and that his information was that 130 people would of matters brought to light by this Commission, long-dis­ lose their jobs. I told him I could relieve his mind, that we tance telephone rates in the country have been reduced by had appropriated sufficient money for the Civil Service Com­ $22,000,000? mission to carry the full complement of personnel through Mr. WOODRUM. The American people are paying annu­ 1938 that they had in 1937. Knowing bureaus and depart­ ally $22,000,000 less for their long-distance telephone calls ments as I know them and as I think he knows them, I than they were before the investigation authorized by think he can rest assured that if there is no work for a man Congress. ' at this desk the supervisory official will find a desk not far Mr. MAY. Mr. Chairma~ will the gentleman yield? away where the man can work at something else. They Mr. WOODRUM. I yield. need not worry about losing their jobs. Mr. MAY. As a general proposition I am very much in­ Mrs. ROGERS of Massachusetts. Mr. Chairman, will tlie clined to cut down %overnmental expenditures everywhere gentleman yield? and to economize as much as I can. I do not know what Mr. WOODRUM. I yield. effect the regulation of the communications system of this Mrs. ROGERS of Ma&achusetts. Did the gentleman's country has had in recent months, but I do know that since committee consider giving larger appropriations to the Civil the occurrence of these disastrous floods, radio has been Service Commission this year in order that they could have about the only instrumentality of communication that could more personnel for the rating of examinations held to sup­ be used for days and nights in succession to relieve distress ply personnel to such large new Government agencies as or to handle the flood situation. As a matter of fact, it the Social Security Board? I think the Civil Service Com­ superseded everything else for about 3 days and nights. mission has found itself very greatly handicapped due to 782 _CONGRESSIONAL ~ECORD-HOUSE :FEBRUARY 3 . lack of personnel, and this has been very unsatisfactOry, I Mr. SNELL. Will the gentleman yield? think, to everybody. Mr. WOODRUM. I yield to the gentleman from New Mr. WOODRUM. I may say to the gentlewoman from York. Massachusetts, that in this appropriation bill we give the Mr. SNELL. May I compliment the gentleman on what · Civil Service Commission $2,350,000. Our committee felt he has said about the Comptroller General's office? I agree that this amount of money would carry them through. It with the gentleman's statement. I think when we estab­ is not as much as they could use, possibly, but certainly it is lished that system and set-up, together with the Bureau of a reasonable provision for them. the Budget and everything that went with it, it was one of Mrs. ROGERS of Massachusetts. Did they ask for more? the most progressive steps toward efficiency in Government Mr. WOODRUM:. · They always ask for more, but we service that has been taken since I became a Member of think we have given them a reasonable amount with which this House. · to carry on their activity. Mr. WOODRUM. I agree with the gentleman. Mrs. ROGERS of Massachusetts. It seems to me only Mr. MAY. Will the gentleman yield? reasonable that we should allow them additional personnel Mr. WOODRUM. I yield to the gentleman from Kentucky. -and an increased appropriation. · Mr. MAY. The gentleman from Virginia is always so Mr. WOODRUM. They feel that way about it. So you · obliging and courteous and willing to yield. He made the have the two divergent viewpoints. statement at the beginning of his remarks on this bill that Mr. DONDERO. Will the gentleman yield? be preferred to go ahead and not be interrupted. In line Mr. WOODRUM.: I yield to the gentleman from Michi- . with that request I have made a few memoranda and I gan. would like to propound a few questions. As I understand Mr. DONDERO. I have received •numerous complaints the phrase "administrative expense" that has reference to which ha-ve been made to me by people who have taken the cost of administering a particular bureau in all of its civil-service examination to the effect they have been activities? · compelled to wait from 3 to 6 months before they were Mr. WOODRUM. That is my understanding of it. even notified what their mark or grade was.-· This is along Mr. MAY. The gentleman has stated here that the Rural the line the gentleman has just stated. Electrification Administration has been allowed $30,000,000 Mr. WOODRUM. Mr. Chairm&n, the electric eye that in this bill for administrative expenses. Did the committee · has been spoken of, and that we shall probably hear more · in the hearings ascertain anything about the extent to which · about, is one of those uncanny mechanical devices that this Administration has been able to advance money in· ex­ takes a set of papers, flashes them through the machine tending rural electrification and whether or not it has spent and puts down the grade which the person makes on the considerably less than one-third of that much up to the examination. This is done very quickly. The purpose of present time, or lent that much? the contrivance is not to knock people out of jobs, but to Mr. WOODRUM. The gentleman will find in the hear- . avoid the criticisms which we mve just heard. There are ings a full and comprehensive statement of the loans, to­ . many of these examinations held and the business has to gether with a complete statement covering the activities of be expedited in some way, so that these people who are try- · the Rural Electrification Administration. ing to secure employment and trying to get on the eligible [Here the gavel fell.] list may have an opportunity to get there before they die Mr. WOODRUM. Mr. Chairman, I yield myself 10 addi- of old age. tional minutes. Mr. Chairman, I would like to comment briefly on the The Rural Electrification Administration had available General Accounting Office and the work of the Comptroller · $24,000,000 during this year for loans, which they received General. I am one of the Members of Congress who do not · from the Reconstruction Finance Corporation. believe we should ever give up the right to have an admin- We · have given them $30,000,000 in here for loans and · istrative officer who is answerable to Congress in the control $1,450,000 for administrative expenses. of the appropriations we make. · [Applause.] I say that, Mr. MAY. Pursuing my inquiry a little further, what however, with this qualifying statement: I have upon the amount of money, if the gentleman happens to remember floor many times complimented the Comptroller General from the hearings, has the Rural Electrification Administra· who left office just a few months ago. I think he did a tion been able to lend up to the present .time? As I under· good job, although not a perfect job. None of us are per- . stand it, the bill creating this agency provided an appropri- . feet. But I thiilk he did a good job. It is unfortunate that - ation of $50,000,000 a year for 8 years or a total authoriza .. . he dipped· his- brush in venom and · smeared it across the tion. of. $400,000,000. . ... - . .. . . _ · picture of the administrative efforts he made while -in omce.• - Mv WOODRUM. I do not have the details ot those loans . I am sorry he did that, because then he got down from the · right at hand. The gentleman· will :find _ them in the pinnacle of an administrative officer who was not haJll.-' . hearings. strung by politics to the level of some of us who throw the - Mr. MAY. Approximately? partisan barb occasionally. ·· Mr.· WOODRUM . . We were concerned, of course, with the The office of the Comptroller General is one of the most question of administrative expenses and personnel. .. · important offices in the Government service and-ought to be · . Mr. RAYBURN. Will the gentleman yield? · placed on the plane and dignity of a Cabinet position. · I -Mr. -WOODRUM. I yield -to the . gentleman from ~Texas. am not saying he should be a Cabinet officer,· but the office. Mr. RAYBURN. That money has not been available. should be on that plane and it should carry that salary,, - This is the first part that has been made available .. The bill · based upon the importance of ·the duties he has to perform.· authorized the-Congress to appropriate $50,000,000 for the · He should also be given the machinery with which to tunc- first year and $40,000,000.for 9 succeeding years. The money tion. This man gets $10,000 a year. He has upon his that the Rural Electrification Administration has .heretofore shoulders the responsibility of seeing that all of the billions had was. r-eceived-through an allotment which .the President .of dollars which Congress appropriates are spent accordillg) made of $100,000,000. Later he withdrew $90,000,~00 . . So to law. We pay him $10,000 for that. What would private during the term of the Rural Electrification, from the time industry pay a man who had comparable duties and services the act was passed, .including new funds, there hav.e been to perform? We ought to get a man who rates the salary. $8,000,000 allotted,.if I remember correctly. We should give him the machinery and the equipment not Mr. MAY. That was my object in endeavoring to secure only to audit the claims and supervise the expenditures but the particular information. -I may say I am not criticizing to come back to Congress and show us the result of his in- at all. I believe in the activities of the Rural Electrification vestigations. He should be able to show us where there are Administratien. The point I am trying to make is this: I! overlapping functions and useless bureaus and departments. it has been unable to lend more than $8,000,000 'in the whole He should be answerable to the legislative body and not to .year it has been at work,. the possibility is it will not be able the Executive. to handle $30,000,000 during the coming fiscal year. - _ 1937 CONGRESSION4L RECORD-:HOU.SE

Mr. WOODRUM. The testimony before .our committee · Mr. MAY. How is that handled~ was that they could handle it and that they needed it. Mr. WOODRUM. It iS handled by the Treasury Depart­ Mr. RAYBURN. Mr. Chairman, will the gentleman yield ment. to me? Mr. SNELL. Mr. Chairman, will the gentleman yield for Mr. WOODRUM. Yes. a question? Mr. RAYBURN. It must be remembered that during the Mr. WOODRUM. I yield. time the Rural Electrification Administration ·has been au­ Mr. SNElL. I do not know just what agency it is that thorized .by the President it has been busy setting up an lends money to individuals to buy ~lectrical appliances, and organization throughout the country. They have been en­ so forth, but what has been the fact with reference to the. gaged with applicatiuns, sifting them and finding out wh1!tber actual working out ermit just one -other to clean and fumigate these documents. I have a pieture question ()n another subject, in Tegard to the Social Se­ here, and they found many of these public records in a ter­ cutity Board. for which an appropriation is being made here rible state, about ready to go to pieces. of .$18,000,000, I believe the gentleman .said this is far .ad­ They bave discovered a proeess ·for cleaning where the ministrative expenses. As I understood the law when we document is put under high pressure and something like enacted it, the levYing on industry of a graduated tax that cellophane, but more durable, is -pressed on both sides of it, goes up to a :certain point -was intended not only to take .care which not tmly preserves it but will carry on for succeeding of the Social SeCurity obligations but also to pay the ad.; generations. ministrative expenses vf the .Board? There Is a new fi.eld ~f activity. It is the setting up -of a Mr. WOODRUM. No; that is the unemployment insur­ new bureau with some three or four hundred employees to ance tax. It does not go to the Social Security Board at an. man that ageney. It goes to the Federal Treasury. But 1s there any person who will say that it is n1:>t neces- Mr.MAY. Then this has reference to the ()ld-age pension sary for the Government to keep and perpetuate its records? system? Mr. MICHENER. Will the gentleman yield? Mr. WOODRUM. Eighteen milli

hope that we will have the assistance or" the gentleman from ~ it will, the ·Government in many instances will have a good, Virginia to put this activity under the civil service and sound investment. · eliminate politics entirely? Mr. DOWELL. But would it not be· better if we can · Mr. WOODRUM. I quite agree with the gentleman, but I still retain that in the possession of the owner of the want to call his attention to this fact: We have across the property than to take it over by the Government? Plaza the Congressional Library," which has never been under · Mr. WOODRUM:. Very much better, but, after all, it is a . civil serVice, and yet the Congress has withstoOd the impor­ ·loan and not a gift. If the point comes where it is obvious tunities of both major political parties to make that a politi­ that the owner of the property cannot handle it or pay for cal football, and I do not think it has ever been made a ·it, we have to take it over. · political football, though sometimes some of my colleagues Mr. DOWELL. I assume that the gentleman has made a thought·so. I remember a few years ago our· distinguished careful investigation of this situation. What is the reason colleague from· Oklahoma making a great complaint about for such a great number of foreclosures in this agency in so ·the number of the gentleman's own party who were in that short a time? ·organization, but I agree with the gentieman from , Mr. -'WOODRUM. The reason is that a great many people and I should like to see it put under civil service and put on ,borrowed-money from the Home Owners' Loan Corporation the ·merit basis. · · · · and sat down and said, "The Government has this, and -I I want now to comment on two of these emergency organi- know that · my Congressman or Senator will not let them zations that come to us for the first time ·ror administrative foreclose the property", and they bought new automobiles · expenses, the Home ·owners' Loan Corporation and the Fed­ or took trips around the world instead of paying for their . eral Housing Administration. We have made a further cut ·property. That is not so in every instance; and, of course, · in the appropriation for the Home Owners' Loan Corporation. there are some cases where adversity has come. We are . We cut them $2,000,000, and those . gentlemen feel very now meeting .new difficulties in the -great flood, where people ·keenly that perhaps they are going to be pinched pretty tight are being wiped out, and they· are an unknown quantity, over that·appropriation. ·However, I say to those of my col­ . which we are not able to appraise, but in many instances leagues· who have expressed interest ·and some apprehension people have not manifested the- same desire to meet· their about the cut we made ·there that the Home Owners' Loan obligations that they would manifest if dealing with private Corporation ·had 22,000 employees when at the peak of its- individuals. . · · : lending operations, and that nuinber was l'educed ·.tO 15,000. Mr ..SNELL . . .Mr. Chairman, will the gentleman yield? They believe now that -during 1938 they will probably have Mr. WOODRUM.· "Yes. ~ 160,000 foreclosure proceedings going on. That will require Mr. SNELL. Does the gentleman know what proportion a lot of personnel, and under the bill we give them $1,000,000 of the whole· amount the Government will have to foreclose? more- for 1938 than for 1937, which will permit .the employ- _Mr. WOODRUM. Out of 1,300,000 loans made so far . ment of nearly 1,000 additional personnel; and our committee . they have 160,000 foreclosures . feels that we have given them enough to run them through Mr. SNELL. Has there been any estimate of what the 1938. loss will be on that? Mr. MAY . . Mr. Chairman, will the gentleman yield? Mr. WOODRUM. They do not estimate that ultimately Mr. WOODRUM. Yes. there will be any loss. -Of course, there will be peak losses, Mr. MAY. I have been in conference with two or three of and the foreclosures will be very heavy in the first few the employees of the Home Owners' Loan Corporation in the years, but after persons have paid on their property for a last 10 days on two different occasions, and they are boasting year or two they will have ·sufficient equity in it, with the to me that the Government was able to borrow that money market coming back to anywhere like normal, that the G~v­ at about 3 percent or less, and that they are using it on their ernment's liability will be small. bonds, and that they were lending it out at 5 percent, and Mr. SNELL. Can the .gentleman state what proportion that the difference between the cost of the money and the are keeping up their payments? amount they were getting for it would be amply sufficient to Mr. WOODRUM. It is in the hearings, but I do not pay all administrative costs. . recall just now. Mr. WOODRUM. They pay out their own fund. This Mr. GIFFORD. Mr. Chairman, will the gentleman yield? ·money is not appropriated out of the Treasury. We author- Mr. WOODRUM. I yield. ize them to use their own funds. Mr. GIFFORD. Has the gentleman noticed where a de­ Mr. MAY. In other words, this is an authorization? cree of the court has granted injunctions against fore­ Mr. WOODRUM. That is all. closure on these properties in one section? Mr. DOWELL. Mr. Chairman, will the. gentleman yield? Mr. . WOODRUM. No; I had not noticed "that. Mr. WOODRUM. Yes. Mr. GIFFORD. It seems interesting that a court should Mr. DOWELL. Numerous foreclosures are going on, as I issue an· injunction that would not allow them to foreclose. understand it. What is the policy of the Department with However, the profits derived because of the rate of interest reference to taking over this property, and how is this to on which money was provided as against the rate of inter­ be conducted after the Government gets the title to it, when est paid, is the reason for expecting there will be no loss, it does get title? is it not? Mr. WOODRUM. It is to be conducted just like any Mr. WOODRUM. Yes. private concern would conduct it after taking the property Now, Mr. Chairman, I feel that I have taken too much over. It is to take it over under foreclosure. It has to · time of the . Committee. My distinguished colleague from be maintained, it has to be managed, it has to be repaired, Massachusetts [Mr. WIGGLESWORTH] is going to discuss the and then it will be sold, if it can be sold. bill and then we shall go under the 5-minute rule. I want Mr. DOWELL. Does that mean that it will be the policy to thank the Committee for its courtesy and patience. of the Government to take over all these numerous prop­ [Applause.] erties and conduct them as a private individual would? Mr. WIGGLESWORTH. Mr. Chairman, I yield myself 25 Mr. WOODRUM. The Government has to take over the minutes. property until it can dispose of it. There is nothing else I ask unanimous consent, Mr. Chairman, to revise and ex­ that it can do, but I say to the gentleman that the Gov­ tend my remarks and to include one or two brief tables: to­ ernment is not taking it over if there is a possible way to gether with information provided on request by the Federal get out of taking it over. Communications Commission and by the General Account­ Mr. DOWELL. A great many are reported to be now ing Office. under foreclosure. The CHAIRMAN. Without objection, it is so ordered. Mr. WOODRUM. Undoubtedly, but there again the Gov­ There was no objection. ernment will probably get a lucky break, because so much Mr. WIGGLESWORTH. Mr. Chairman, at the outset I of this pro~'ct;y is appraised and foreclosed when the market want to pay my respects to the majority members of this is down, and if real estate comes back, as mahy people think subcommittee. It has been my privilege to serve on this com- 1937 _CONGRESSIONAL RECORD-HOUSE .785 mittee for a number of years with the distinguished gentle­ of their consideration at all times in connection with the man from Virginia [Mr. WooDRUM]. I have long considered preparation of this bill. him one of the outstanding members of this House. I am It is always a little difficult to compare totals carried from sure we all agree that we are very fortunate in having him year to year in the independent offices appropriation bill, for 1n the position which he holds at this time. the reason that the agencies covered vary considerably from I want to express to him and to my able and genial friend year to year. I insert at this point a table which has been the gentleman from New York [Mr. FITZPATRICK] and to the prepared showing a comparison of the totals this year with other members of this subcommittee my sincere appreciati9n last year.

1 The amount for 1937 did not re.quire to be authorized, sec. 7 of the First Deficiency_Act, 1936,_being effective only for_1938 and subsequent fiscal years. -The figure shown Is the estimated actual expenditure. . . 2 Not included in the bill. Reported here for the purpose of affording a comple~ ~udget -picture.. · : . . . a Includes a total of $93,556,255 for permanent appropriations which are not earned m the bill, but IS reported here for the purpose or affording a complete Budget picture. While it is difficult to make an· exact comparison, the The bill also carries permanent ·appropriations amount­ trend of the totals carried is, I think·, significant. If we take ing to about- ninety-three- and one-half ·million dollars, an the totals carried in the bill for the fiscal years 1935 to 1938, increase of abOut one and one-half million dollars as com­ inclusive, leaving out deficiency items, and limiting ourselves pared with .the present year. · The grand total, as indicated to items for the regular establiShments, we find that the in the table, amounts to $1,140,313,398. · · totals run something like t~s: Mr. Chairman,-the scope of the independent offices appro­ 1935 ______$617,000,000 priation bill is always very_great. . It iS particularly so this 1936------777,000,000 year because of the far-reaching chara.Cter of the new items, 1937------~------880,000,000 which appear in.the bill for the first time. As the chairril.an 1938-~------~--~------~-- 986,000,000 of the subcommittee has indicated, there are 32 agencies provided for in one way or another in this bill. Among the On this basis the increase as compared with the bill a new items you will find such important items as the Social year ago amounts to about $106,000,000. Including defi­ Security Board, the Rural Electrification Administration, ciency items and reappropriations the increase on the basis the Home Loan Bank Board, the Federal Savings and Loan of appropriations amounts to about $69,000,000, or on the Insurance Corporation, the Reconstruction Finance Cor­ basis of actual expenditure, to about $128,000,000. poration, the Home Owners' Loan Corporation, the Federal The bill, as has been pointed out, represents in respect to Housing Administration, and the Public Works Administra­ the regular establishments a reduction as compared with tion. It is obvious that in the time available this morning Budget figures, of $4,950,000, reflecting a reduction ·in the any comprehensive treatment of the items carried in this salaries and administrative expenditures of the Social Se­ bill is out of the question. All that can be done is refer in · curity Board to the extent of $5,000,000, and an increase to a very brief way to a few points which seem important in the extent of $50,000 for the care and maintenance of the connection with the several agencies. Executive Mansion and grounds. Just a few words, first, as to the items with which we The sum recommended by the Budget for the administra­ are more familiar which have appeared in this bill in previ­ tive expenditures of so-called emergency agencies amounts ous years. · to roughly $61,000,000, or a decrease, as compared with I have already spoken in respect of the Federal Com­ estimated expenditure for the current year, of about munications Commission, or more specifically, with respect $18,000,000. Your committee recommends a reduction in to the Division of that Commission. I · the Budget figures amounting to $1,000,000, reflecting. a have already called attention to transfers of broadcasting decrease for Home Owners' Loan Corporation of $2,000,000 licenses approved by the Commission, which in the absence and an increase for Federal Housing Administration of of further explanation appear to be without justification if $1,000,000. not scandalous. I am not going to say anything further The principal items of increase. and decrease appear for on that subject at this time. I shall, however, under per­ the regular establishments on page 3 of the report and for mission granted insert at this point certain information the emergency items on page 26 of the report. furnished by the Commission on request. LXXXI-50 CoNDENSED TAELEB OJ' TRAN'snttS AND LEASES o:f' BROADCAS'l'INO LICENSES .AnaoVJ:D BY FEDERAL CoMMUNICATIO:NS CoM:IlrltsstoM

Applicatiom for conBent under Bee. 810 of the OommunicatiOnB Act Of 1994 for aBsignment of lictnseB granted bU Federal Communication• Commi83lonr or plrtod from Julv 1 1 1996, to Dec. 8, 19~8

Tott.l Replace- claimed ortgitlal value of Statton Dat~ granted Station Location Fileno. AIISignor Adeignee cost fixed ment cost physlca.l Period eArnings Consldera- by commis- assets of fixed and in- (net profit) tion paid sion assets tangible assets

KCMO ______Montll~ Kansas City, Mo ______B4-AL-88...... Charlotte Dune&.n1 administratrix of l:..ester lt. Cot, Thomas L. :E'\tan~. $10,473. 45 $11, U1. 45 ~.600 . 00 6 $1,347.82 $18,000.00 May 14,1936 estMe of Wilson Dun can, deceased. and 0. 0. Payne. KFJR. _----- Portland, Or~------B5-AL-130 ______tshley C. Dixon, K FJR, Inc ••.•• __ __ K.AL~, Inc ...... ~- -- - - •• -- • - a• .. - 6, 461.72 13,500. 00 19,481.80 13 1,008. 97 28,500. 00 Oot. 7,1936 KFVD ______Los An&eles, alit. ____ KFYO ______B5-AL-98 ••••••• os An~l~ Broadcastlng Co .~o •••• Standard BroadOil.Stlng Co., lno...... ~ 0, 105.20 14,025.00 7, 008. 10 6 2, 881.78 65,000.00 June 12,1936 Lubboc , Tex ______B3- AL-89 ...... 'I'. E. irksby, trading as ksey Plains Radio Broadcasting Oo ...... 11,733.68 11,301.73 ~1. 000.00 6 1, 792.82 21,000.00 Apr. 3,1036 Bros. KIDW J _____ Lamar, Colo ______B5-AL-83 ••• ·- ~ L&.mar l3roadoasting Co...... ____ 'I' he Southwest BtoadcAStl.!l.g Oo ~ 15,000. 00 8,000.00 8,000. 00 8 1942.114 11,200.00 Apr. 7,1936 KMMJ ______(leMe onlY). Clay Center, Nebr• •• ~ - B4-AL-97 ______89,007. 30 ("/, 14~. 20 I 3, 037.03 60,000.00 July 2, 193B KOIL ______TheM. M. 1ohllson Co.. . , ------···- kMMJ, Inc. ··- · ·-·---· -··-··--· --•-• 40,934. 79 6 KOMA ______Council Bluffs, Iowa__ _ B4-AL-63 ••••••• Mona Motor OU Oo ______...... L • • • The Central StMes !Jroa.dcasting Co. ~ 69,068. 02 (15, 340.34 S5, 229, 88 a I 1, 686. 77 110, 000. 00 Nov. 12, 1935 Oklahoma City, Okla• • ~ National Ra.dio Mfg. Co • .______. _._ tAt 0() AUg. 13, 1936 KOY ______Phoenix, Ariz ______B5-AL-140B3-AL-105 _•.•_____•• B Rndio, Ino ...... 20,966. 01 21,852. 00 106, 000. 6 17,1597.28 171,000.00 KPDN ______Nielsen Radio & Sporting Goods Co_ . Salt ntver Valley 13 toadoa. tlng Oo •• •• 22,010.35 1a. sas.12 ro. ooo. oo 6 4, 833. 31 li(), 000. 00 Nov. 10, 1938 Pampa, Tex __ ------B3- AL-117·-· · -- Pa.tnpa DallY News! Ino. _ ·- ··-·~ ·- ·- - R.. C. IioilM. - --····--···· ··· ...·· ·- ~· - · 11,784. '79 11,724.79 10,014.06 ~ 1, 885.46 15,000. 00 Sept. 22, 1938 KRE------Berkeley, Calif. ______B5-AL-87 -----· First Oongregatlona Church ot Berke- The Central Broadcasters, Ino ...... 14,494.05 11, 2tro. 00 6, 701.44 6 101.32 16,978.23 Do. xsoKRQA ______••••••• •••. • do. ------B5-AL-100...... vf~b". Irvtn ••.••• ______...... 1. Laura.nce Martin.·-----· -----· --·-- 15,062.11 4, 047. (13 14,332.39 8 1869.35 15,000. 00 ~uly 2,1938 Des Moines, Iowa _____ B4-AL-60u ...... Ced.Ar :Itapida Broadcast Oo ...... Iowa Broadoastin~ CO-----a-••--·-· --- 27,600. 00 'Zl, 600. 00 134,950. 00 3 I 8, 61.5. 00 1.00 Jan. 10, 1936 KT AT------Fort Worth, Tex______BB-AL-103 •••••• KT AT Broadc t Oo., Ino ______._ Raymond E . Bue ---·rJ_ •• _.,. __ .. _...... 66,861.04 75, -taO. 99 1~,000 . 00 6 I 3, 000.00 160,000. 00 Aug. 13, 1936 Raymond E. Buck ______• ______d KT AT------____ _do . _------·-- B3-AL-136 ...... 86,861.04 76,469. ~9 1 • 631.22 1 1, 009. 39 '170. 000. 00 Nov. 10 1936 KTSA ______San Antonio, Tex ______To.trant Broadcasting 0---- · ----·--· KVOL ______Ba-AL-95•• .•••• Southwest Broadcll.Stinft Co .~ -- · - · -- ·- KTS.A l3toade&.stlng Oo ...... - ~ 72,3155.28 78,941. 7 208,000.00 6 14,000.00 180,000.00 May 4,1936 Lafayette, La..------BB-AL-86...... George H. Thomas, . M. Dean, E\f&.ngellne l3roadcastlng Oo., Ino...... 4, 970.53 4:,970.53 7,492. 51 8 1, 915. 57 '7, 203. 82 Ma.Y 21,1936 L. M. Sepaugh, T . B. Lrmrord, doing business as ltnngelhle Broad- KVOR ______casting Oo. Colorado S8rings, Colo_ B5-AL-121 ...... S. H. .. ----·------·-·--· -·· Out We:~t Brott.dcastin~ Co._·--· --·--- 19,M8.40 19,727. Oo 70,629.73 6 4, (121. 60 80,000.00 Oct. 20, 1036 KWG ______Stockton, alif______B5-AL-109 ______PortablePa~er!lon Wireless Telc!fohone Co ______McClatchy Broadcast ng Co ______July 2,1936 KYA ______B5-AL-59 ______12,044.42 12,044.42 46,687. B3 6 8,823. 58 1.00 San Francisco, Cali!. __ 1 I 13,740.70 1.00 Mar. 10,1936 WACO ______Waco, Tex ______Pacific BroMeastt.n orpora.ttotL - · -· Hearst ltai1lo, tne~ ------..·- · ---· ---- 62,068. 80 27,200.00 ~5. 658.61 8 Atlanta, Ga______BB-AL-104...... Central States Btoadcastmg Co., Inc•• K:tsa. Broadcasting co ••••• r ·~ -- .-·- -- 14,896.12 17,965. 00 62,000.00 6 6, 600.00 501000.00 Aug. 13,1936 WATL------BB-AL-40...... Oglethorpe University. __ ------· --·-· 1. W. WoodrUff and 8. A. 0 slet, doing 21,794.00 U,4M.OO 12, t50. 00 8 I 173.25 16,500.00 Oct. 22, 1935 bulliness as Atlanta Broadcasting WATL______Co. _____ do._------BB-AL-123 •••••• 1. VI. Woodrufl and 8. A. Cisler, doing 1. W. Woodruff, doing business as 21,794. 00 11,450.00 6, 000.00 & 3, 803.27 4,500. 00 Oct. 27,1936 buslliess as Atlanta Broadcasting Atlanta Broadcasting Co. Co. wens ______Charleston, W. Va_____ B2-AL-14L_ .. ___ wcop______Charleston Broadca8tlng Corporation. Charleston Bro dc&.sting Cor8oration_ 71, \)42. 20 145,718.04 61,680. 00 t> 9, 426. 60 200,000.00 Do. Boston, Mass ______B1- AL-77 ---·--· Joseph M. Kirbl'· --·--·------.. --·-· Mas aohusetts Broadcasting orpora- 42,620. so 42,620.80 57,806.05 1 12,129.07 a 57,000.00 May 28,1936 WCPO ______B2-AL-7Q______tlon. Olncinnatf, Ohio______Radio Station Wli'BE Ino...... Continental Radio Oo ...... IS8, 600.00 8.5, 518. 00 t2, 157C1.10 6 1941.92 58,500.00 S~t. 24, 1935 WEBR, Inc ••• •••••••••. ••. •. • _•• ___ _ J y 2,1936 WEEIWEBR•----- t ____ .__ Buffalo, N. Y ------B1- AL-1a••••. • Howell :aroadeasting 6<> ------·-··-· 169,884.90 120,964. b8 09, 250. 00 6 7, 232. 85 120, 000. 00 Boston, Mass ______B1-AL-112.. •••• The Edison Jl:lectrio Wumtnating Co. WEEl Broadoasting tlo. (lease) ______4111,978.00 '63, 234. 497,007.00 6 66,486.43 t 219,000. 00 June 20, 1936 or Boston. WELL------West Haven, Conn ___ _ B1-AL-99.. _____ Patrick). Goode------·------.----- City :Sroadci\Stlng Oorporatlon. _• • ___ _ 30,49::1. 06 ao, 402.06 &7, 127.10 (I I 6,184. 95 '57, 000. 00 June 12, 1936 WEST------Easton, Pa. __ ------~ B3-AL-43. ___ • __ Lii.Doa.ster BrOAdcasting Service, Inc ___ Assoointed Broadcasters, Ino. ____ )j; __ _ 19,000.00 19,000. 00 12,750.00 3 I 661.78 19,000.00 Oct. 22, 1935 WQAN------Scranton, Pa ______B2-AL-84...... E. ! . Lynett (property the Scranton E. 1., W. R., Elizabeth R., and d- 18,000.00 18,000.00 338,000.00 None 1. 00 May 1,1936 Times). ward J. l..ynetti1r. _____ .______--·-·---·- WSGN •••••• Birmingham, Ala _____ Bs-.AL-73...... Ormond 0. Black and. Mary Collett R . B. Broyles, do g business as~. B. (1) None Dec. 17,1935 Black (R. B. Broyles, trading as R.. Broyles Furnlture Co. -----·-·--·------·------B. Broyl s lturniture co.). WSGN •----- _____ dO------B3-AL-SL ••••• See above name in parenthesesi omit Birmingham News Co. (leAse) ... _.. ____ 12,000.00 12,000.00 6, '784. 00 '7 2,1592.42 '6, 000. 00 MaY 14,1936 same as pnrt of B3- AL-73. WTAQ ______Green Bay, Wis______B4-AL-36...... Glllette Rubber Oo. _·--- "·------··-· WHBY, Ino ...... 21,691, 211 32, 121., ~.569 . 25 8 914.10 30, 000. 00 Aug. 27, 1935 WTAQ ______do.----____ ------... ___ do ...... __ _•••• ___ ...... :.. •••••• •s Oct. 1,1935 WWNC _____ Ashevllle, N- c ______B4-AP- 7- •n---- .... ~ •• do...... ----"' -· ----·---· ~.669.25 3 914. 10 30,000. 00 B3-AL-12~u ...... Citizens Broe.dcasting Oo., Ino_. __ ,. __ • .Asheville Oiti2en-Tlmes Oo., Inc• ••••• ·"'a4;4iros· - " ~5;25t&o" 9, 223.03 6 11,218. 87 1.00 Oct. 20, 1935

•Deficit. 'See supplementlll'y information Attached hertto. 1l'erannum. 'In stock. •N'ot ktlowu. o Cancelation of lease. Existing licensees operating stations under leases where assignment of license (based upon lease) was approved b11 Federal Radio Commission prior to Jutv 11, 1934

Period lease is operative

Station Location File number Assignor (lessor) Assignee (lessee) From- To-

KEX __ __ Portland, Oreg ______5-AL-B-534------Western Broadcasting Co·------The Oregonian Publishing Co·------Sept. 3,1933 June 14, 1938 KFDM __ BeaumonhJex •• ------3-AL-B-:437 ------·------·------Magnolia-Petroleum Co______Sabine Broadcasting Co., Inc. ------June 22, 1932 June 21, 1937 KGA ___ _ Spokane, wash ______'"' ______5-AL-B- 533 •• ______June 14, 1943 KGO __ _ _ San FranciRco, Calif______Northwest Broadcasting System, InC------Louis Wasmer __ ------. Sept. 4, 1933 KJR ____ _ 5-AB-186. ------General Electric Co.------National Broadcasting Co., Inc.~------Feb. 1,1930 (0) 5-AL-B-497------Northwest Broadcasting System, InC------Fisher's Blend Stations, Inc. ------' Feb. 21,1933 Dec. 31, 194l General Electric Co· ------National Broadcasting Co., Inc ______Feb. 1,1930 (0) . KOAKPO ___•••• _ ~:~~:;.San Francisco, '6~~~--:: Calif: :: :::::::::::::::::: ______5-AB-187------·---:.•••••••. :. ••. 5-AL-B415------Hale Bros. Stores, Inc., and the Chronicle Publishing ••••• do._------~------Dec. 17, 1931 Dec. 17,_193r - - - co. , WAPL •• Birmingham, Ala------3-AL-B-440------Alabama Polytechnic Institute, University of Ala- WAPI Broadcasting Corporation. ______Aug. 1,1932 Aug. 1,1937 bama, and Alabama College. WASH •• Grand Rapids, Mich.------2-AL-B- 398 •••••• •·•• .: . ::. ~------WASH Broadcasting Corporation ______Kunsky-Trendle .Broadcasting Corporation'------Dec. 21, 1931 Oct. 15, 1935 WBNO • • New Orleans, La.------3- AL-B-312______The Coliseum Place Baptist Church ______Samuel D. Reeks.------­ Aug. 20, 1930 Aug. 20, 1940 WDAE •• 'l'ampa, Fla______3-AL-B- 552------Tampa Publishing Co. ------­ Tampa Times Co. __ ------June 30, 1D33 June 30, 1943 WFBO __ _ Altoona, l?.a __ __------2-AL-B-464••••.• ~ ____ ----~ - '- --- 'l~he Wllliam F. Gable CO - ----~------The Gable Broadcasting CO------=-- July 1,1932 Dec. 31, 1932 WHBY • . Green Bay, Wis. ------4-AL-B-466______St. Norbert College __ __ _------WHBYi Inc._ ------·------Oct. 1,1932 Oct. 1,1942 WMAL •• Washington, D. C------1-AL-B-494______: ____ :______M.A. Leese Radio Corporation______Feb. 28, 1933 Jan. 31, 1938 Moody Bible Institute of Chicago______Nations. Broadcasting Co . ~ Inc._------WMBL .• Chicago, ill ------4-AB- 23 . __ ------Moody Bible Institute Raaio Station ______Nov. 26, 1928 Oct. 20, 1929 WOOD •. Grand Rapids, Mich.------2-AB-322 ______,; ______Walter B. Stiles, Inc______------Kunsky-Trendle Broadcasting Corpora.tio,n 7______Oct. lli, 1930 Oct. 15, 1935 WTAM •. Cleveland, Ohio. ______:__ 2-AL-B- 288 ______------WTAM, Inc------National Broadcasting Co., Inc._------Oct. 16, 1930 Oct. 15, 1933

Total Station earnings 1 Origlnnl Replace­ claimed 1----'--:------1 Considera- Date granted ment cost vuluo or tion paid by Commis- Station Location File number Option to renew cost fixed fixed physical assets 1 Period · Net loss (per an- sion 1 assets 1 and intan­ num)l (months~ or profit g-ible a~sets 1 -- -- - " .. KEX ___ _ Portland, Oreg ______. ____ • ___ •·••• :. ••- •••:. •••• ______5--AL-B- 534 __ ___------.:. •• :. . . . Yes._------(8) - (8) (1) (') Oct. 28,1931 KFDM •• Beaumont, Tex·------3-AL- B- 437 ------None provided ______-- $54,702.46 $60,000.00 3 ··;s;i49~aa· $3,600 July 19,1932 Spokane, Wash ___ _: ___ .___ :_ ;: ______:-______5-:A.lr'B'--533 . • ______•• do __ -r ------___ --- ______Aug. 25, 1933 KGAx:Go .___• .:.. _ San Francisco, CaUL ______26,446.00 26,446.00 3 38,168.97 ~·) 5--A-· 186 .. ~ ------Cancelable on 1 year's notice. (8) (l) (I) ( 6) Mar. 26, 1930 KJR ____ _ ""6i;46i~$7- Feb. 21, 1933 KOA ___ _ Seattle, 'V ash ___ ------5-AL-B -497 ~ ------__ None provided ______-- ~8) ~·) Denver, Colo ______------______--- 5--AB-187 ___ ------Cancelable on 1 year's notice. .~!~ . ( •) Mar. 26,1930 KPO ••.• San Francisco, Calif. ______5-AL-B-415------__ None provided ______(a) (:~ <·~(8 ------61 June 10, 1932 WAP.J; __ _ Birmingham, Ala______. __ ; ____ _. ______-----i99~94" 3-AL-B-440______------: ------! •... do. _------86,500.00 •o. 2so. oo 9,300 Aug. 1,1932 WASH .. Grand Rapids~,. Mich------2-A L-B-398------___ •• do.a _------(3) (3) (1~ 6, 760 " Dec. 21,1931 WBNO .. New Orleans, La.------3-AL-B- 312------Yes __ ------(3) (8) (I ------1, 200 Feb. 17, 1931 WDA.E .• Tampa, Fla. ------__ 3- AL-B-552 ______• _. None provided ______-----__ 14,200.00 (3) 3 --·-·aas~96- 1 Mar. 2,1934 WFBG •• AI toona, Pa ______------2-AL-B-464 . •• __ --_--- •• ----__ ---____ ----- Yes. __- - __ ---__ ---_------24, 069. 00 115,609.00 3 942.02 Nov. 9,1932 WHBY .. 4-AL-B-466 ______------_____ ----______" .do______--- __ ------33,323.72 29,291.26 (I) <'l ,200 Do. WMAL . • 1- A L-B-494 ______----_ None provided_____ ---______37,599.32 ---4;85t49" 36,000 Feb. 28, 1933 WMBL. 4-AB-23. ___ ------Yes. ------_------1 Nov. 26, 928 WOOD __ ~~~~\~~~~~~==~::::::::~:::::::::::::::::·::::: ------15,000 Mar. 24, 1931 Clevel(lnd,Grand Rapids, Ohio Mich ___ .:. ______••• ------.______· _:.. _.:. ____--- _ 2-AB- 322. __------None provided •------WT.A.M •• 2-'Alr-B- 288 ___ ------_------_. ----•• __- •• do ______------"·r:r·, . m- m ------(8) . Oct. 17, 1930

t Rules o.t that time did not call for this information; subsequent rules.require this information. • Continues indefinitely. I All grapted without hearing except 5-AL-B-415(KPO) and 1-AL-B-494(\VMAL), which were granted after hearing. 7 Kunsky-Trendle Broadcasting Corporation now King-Trendle Broadcasting Corporation. I Not furnished. . . . · - · • Leases have been continued by extensions of original agreement. ' No mop.eta.ry consideration. . . · . . • Net income. • Although these leases provide as stated as to monetary consideration, advertising services and announcements are involved. Italic fiiures indicate.loss. . · '

'! Applications tor conaent under sec. 810 of the Oommuntcatiom Act of 1934 to transfer control cf licenaee corporation, granted b11 Federal Oommunfcatiom Oommiufon during period from Jul1/11, 1934, to June 30, 1936

Original Station Location FileNo. Licensee corporation Transferor Transferee cost of fixed assets

KWKIL •. Shreveport, La ______BS-TC-13 ••••• International Broadcasting Corporation______Sam D . Hunter·------Times Publishing Co., Ltd. _-,------$82,200.00 WBAL '--- Baltimore, Md ••••••••••••• Bl-TC-2••••• • The WBAL Broadcasting Co.------Consolidated Gas, Electric Light & Power Co. American Radio News Corporation ______(2) of "Baltimore. WHBUH_ Anderson, Ind------­ B4-TC-4••••• ~ IsleAnderson of Dreams Broadcasting Broadcasting Corporation Corporation ••• ···------______Citizens Bank ••• _------­ Leo M. Kennett._------WJBY'WIOD '--- ___ Miami,Gadsden, Fla.-----··------Ala______B3-TC-L•••• Jessen. Jay------Metropolis PublishinL:Co ______------~~~ Ba-TC-10•••.• Gadsden Broadcasting Co., Inc._------­ R.Mr. W. and Hoffman Mrs. Morel ______Montgomery •••••••••••••• ,;, ______8,~~9. 50 WKBB •••. E. Dubuque, DL ••••••••••• B4-TC-8•••••• Sanders Bros. Radio Station.------······ tS:{i~~~~~:a:.~~---~~--~~~~-~-- -~~~~~~-.:::: 19, aoo. oo WMMN ••• Fairmont, W.Va ••••••••••• B2-TC-9•••••• A. M. Rowe, lnC------·-··---·------·------­ A. M. Rowe, Inc.------·-···------22,976.57 WPHR.... Petersburg, Va. _------B2-TC-8•••••• WLBG, Inc•••• ------r:atnio~t~~g~-~~~~~~~~~!-~-~r~~~~~~o-~:::::::: 19,228.17 WTBO a___ Cumberland, Md••••••••••• B Roger W. Cllpp and Frank V. Becker ______WTFI. •••. Athens, Ga ______1-TC-6.•.••• Associated Broadcasting Corporation._------iie~t!?t· ~~-:81:Ye: :::::: :::::::::::::::::::::::: 16,314.05 B3-TC~---- Liberty Broadcasting Co•• ______:.:. •••••• R. R. Scales, Jr.; R. A. Forrt~st; Mrs. R. A. For­ Norman K. W1nston------81,827. G6 rest; E. Kelly Barnes; The Liberty Life In­ . surance Co.; and M. M. Erwin.

Claimed Station earnings value of Replace­ Common Percent stock trans- ment cost stock trans- of total ferred, in- Considera: Date granted Station Location FileNo. of fixed !erred stock tlon paid by ~~~s- assets (shares) issued physicalcluding Period Net_ erofl.t and intan- (months) or oss gible values

KWKB. -- Shreveport, La·--·------~---·-··--·--- B3- TC- 1B-----·------$109,000. 00 1,000 100 $63,000.00 8 14,6fJT. Ot $60,000 May 28, 193~ WBAL c_. Baltimore, Md------~t+8:t-: :::::::::::::::::: : ::::::::::::::::::: 146, ~~6. 02 50 100 85,000.00 8 t,6P8. 4S 452,500 Jan. 8, 193~ 1,000 100 ~') (1) 21,000 Jan. 29, 1931! :::::::::::::::::::::::::::::::::::::::::::: BB33=TT cc=110·------.------n, (1'0)4. 50 50 100 250,000 Jan. 8,1935 WJBY;~BDU• '-·- ~ ~ ~~~:f.oFi~~--~::::Gadsden, Ala __ ------·------·------., 26 51 5,~.00 1 1,500 June 4,1935 130 56 12,000.00 ------·-a· ~~1 6.85 ~.600 May 21,1935 ·~~~N:·_- ~a?r~~~~u~-~8::::::::::::::::::::::::::::::::::::::::::::::: ~t18=~ : ::::::::::::::::::::::::::::::::::::::: ~~: !~g: ~ 650 100 16,052.67 8 1, 410.48 25,000 Mar. 6,1935 W PHR. -·· Petersburg, Va. ------···"····--· ------BB2l=TTCC--63_.• _._-_- __--_-_· __ - -_-_-_-_-_-_ -__--_·_·.-_-_-_·_-_-_-_-_-_-_·_- __--_-_-_._-_-_ 1156', 904721 .. 000" 265 56 9, 618.82 1 S68.SS 4 505 Apr. 2,1936 WTBO •--- Cumberland, Md. ------·------.., 149 60 17,2011.00 10,600.00 Feb. 26, 1935 WTFI ••• _ Athens, Ga.·--·-----····------·····------B3-TC-6a. ------·------·------21, 562. 65 250 100 20,082.80 -----~--8- 'P7!.60 20,000.00 June 4,1935

1 All granted without hearing. a Sale of WHBU ordered by Department of Financlallnstitutlons of State of lndiana upon liquidation of Citizens' Bank, transteror. 1 Not furnished. ''fhe rule of the Commission at that time did not call for the Information not furnished. Italic fl.gures indicate loss. Bupplementarv Information relative to tUBignment applications where leasing of station propertv onlv is involved

Period cov- Rental per Station Location File Lessor Lessee Period that lease is operative Annual rental Option to ered by year if option number of equipment renew option, if to renew is exercised exercised

WKBVt •• Richmond, Ind ____ B4-AL-S •• William 0. Knox..·------·------Knox Radio Corporation______From Aug. 24, 1934 to Aug. 24, 2033 •• None None ---·------WSGN •••• Birmingham, Ala. BS-AL-33. R. B. Broyles, trading as Broyles Furniture Co. Ormond 0. Black and Mary C. Black. From Mar. 5, 1935 to Mar. 5, 1940 •••

Total Station earnings claimed Original Repl!lce· value of : ment cost Considera· Date granted Station Location File no. Assignor Assignee cost, fixed of fixed physical tion paid bycommis· assets 1 and in· Period Net Eroflt sion J assets tangible (months) or oss assets - .. KFEQ ..• St. Joseph, Mo .••. B4-AL-52... Scro!gin & Co. Bsnk------·---- KFEQ,· Inc•••.•• ------$52,939.26 $56,479.31 $40,116.23 3 $64.83 $40,000.00 June 4,1935 KOHl. •. Little Rock, Ark ••. Ba.-AL-18 ... Loy Judd Co.------Arkansas Broadcasting Co .• ------(8) 7, 619.45 5, 802.61 3 289.43 10,000.00 Dec. 11,1934 KONC __ Amarillo, Tex ••..•. B3-AL-46... E. B. Oish (Gish Radio Service)------Plains-Radio Broadcasting Co ______16,581. 8S 29,176.63 25,674.43 3 349.88 40,000.00 Apr. 30,1935 KIEM ___ Eureka, Callf______5- AL-B-576. Harold H. Han seth._------'------Redwood Broadcasting Co., IDO------(3) 18,403.04 18,403.04 3 1, 337. 34 '27, 000.00 Aug. 14, 1934 KOTN •. Pine Bluff, Ark.••• B3-AL-36... Wm. F. Chaplin .. ------Universal Broadcasting Corporation ______(8~ 5, 841.00 4, 932.90 3 185.08 2, 750.00 Mar. 26, 1935 WATR .• Bl-AL-5 .... (I 15,814.16 12,459. 99 3 1, 450.73 '12, 459. w Oct. 2, 193i HaroldWCLO Thomas-Radio Corporation------______W A TR, Inc,_.------WCLO •• ra~~~~:r!~ Wi~~== B4-AI.r10.•. WOOL,Gazette PrintingI.Dc •• ______Co., Ino •••------42,776.54 41,099.07 34,254. 08 3 3, 668.11 '34, 254.08 Oct. 23,1934 WOOL •. Columbus, Ohio •.• B2-AL-7 ...• The Columbus Broadcasting Corporation. (3) 8, 120. 00 3, 328.00 3 1, 040.00 27,500.00 Sept. 11, 19M WFIL.•• Philadelphia, Pa••. B2-AL-24.•. Lit Broadcasting Co ______WFI Broadcasting Co. ______,: _____ ;. ______WF!f,. Broadcasting Co •• ------} (3) 77,020.40 60,094. 2! 3 11,529.03 '60, 094.24 Jan. 8, 193~ WFIL ••. _____Erie, do Pa ______------·- B2-AL-25... _____ do.:.._------WBIO ••• B2-AL-1L. Broadcasters of Pennsylvania, lno •••••••• Miami· Valley Broadcasting Corporation ______(8) I 82,500.00 81,132.78 3 46S. 88 85,000.00 Nov. 6, 1034 WIBO •. Elkins Park, Pa .•• B2-AL-15.•• WIB 0, Inc.------Seaboard ·Radio Broadcasting Oo:JOratlon •••• 10,950.00 8, 975.00 7, 117. 50 3 163.39 5, 000.00 May 7,1935 WKBV ~- Richmond, Ind .••. B4-AL-L •• Wm. 0. Knox .• ------·------Knox Radio Corporation (lease·o y) ______(3) 16,980.00 15,595.00 3 496.25 16,000. 00 Aug. 28, 1031 WLAO .. Nashville, Tenn ••• B3-AL-37.•. Life & Casualty Ins. Co. of~ennessee _____ 105,670.80 94,000.00 80,000.00 3 6,696. so 75,000.00 Mar. 5,1!)35 Paul J. Gollhofer ______~ WLAC, Inc.: ••.••. ------·------·------WMBQ •• Brooklyn, N. Y ___ B1-AL-4L. Metropolitan Broadcasting Corforation••.•••• ~S) 9, 827.20 7, 000.00 3 1, 234.25 '7, 900.00 May 7,1935 WMC ••. Memphis, Tenn .•• B~AL-17.. . WMO, Inc•••. ------Memphis Commercial Appeal, DC------66,917.61 48,233. 06 3 5, 025. 2-l • 48, 233.06 Dec. 11, 193! woo, ___ Davenport, Iowa._ 4-AL-B- 547. Red Oak Radio Corporatlon ______The·Pa-lmer ·School of Chiropractic•••••••••••• 13,140. 00 7, 070.00 12 196. 75 '10, 500.00 Sept. 25, 1931 WPO o__ _ ~:~ AtlantiC Ciil, N.J. B1-AL-53.•. JennyWPO BroadcastingWren Co ______Corporation .; ______•••••••••• The elf{ of Atlantic City_------3) 180,650.00 155,595.00 3 S,!.t.t. 6S None June 25. 1935 WREN?_ Lawrence, ans ••. WRE Broadcasting Co ______85,538.22 53,336.92 2, 632.53 Feb. 19,1935 ____ .do______---· B4-AL-4 ..•• 3 1.00 WREN7. B4-AP-4 .... • • _•. do .••••. ______.: _. ______: ••• ______,__do .•• .; ••.· ------85,538.22 ~:~ 53, 3~6. 92 2, 632. 53 1. 00 Jiln3 18, 1935 WSON•. Birmingham, Ala •. B3-J.. L-33 ••• R. B. Broyles, trading as Broyles Ftlrni·f ~rmo~d 0. Black & Mary 0. Black (lease only) (3) 10,833.65 7, 706.65 ------··a· 1, 606.31 '300. 00 Mar. 5,1933 ture Co. · ' WSMK •• Dayton, Ohio ______B2-Alrl4.•• (3) 50,745.00 52,396.49 3 2, 899.48 • 52,396.49 Oct. 30,1931 StanleyMarion K.M. GilliamKrohn, ______Jr ------~_ .. ___ ,. WSVA .. - Harrisonbur~t. Va •. B2-AP-5.••• ~~!!!io~~cvaiie;;nioadcas'tiiig-coii)oratioii: 19,000.00 19,000.00 19,000.00 None '25, 000.00 May 14,1933 WTRO •. Elkhart, Ind ______B4-AL-L •• The Truth Publishing Oo •••••••••••••••• ~ Truth Radio Corporation.------~------10,110.00 10,110.00 9, 235.20 ------··a· t69.81 '12, 000.00 Aug. WTRC r. ••••• do ____ • __ ------B4-AL-4L. Truth Radio Corporation •••••••••• ~ -----~ The Truth Publishing Oo ••• ------(3) (3) (3) (3) 3) (') Apr. !~: ~~~~

l Where original cost of fixed assets is not furnished applicant was unable to furnish same or the rule of the Commission at that time did not call for this information; subsequent rules required this information. I All granted without hearing except woe (4-AL-B-547) which was granted after hearing. . - . . • Not furnished. •In stock. I See supplementary statement attache!} regarding leases. eN o consideration given: license re-transferred to the city of Atlantic Oity-upon expiration of lease June 30, 1935. 7 Detailed information not furnished; transaction involving a parent-subsidiary relation only. tPer month. .• Italic figures indicate less. Applications for consent under sec. 910 of the Communications Act of 1934 to tranafer control of licensee corporations, granted bv Federal Communications Commission during period from Jul';/1, 1935, to Dec. 8, 1936

Original Station Location File no. Licensee corporation Transferor Transferee cost, fixed assets

J. Herbert Hollister ______Arthur Capper. ______KOKN-- Kansas City, Kans.--·------~------B4--TC- .7 •• WLBF Broadcasting 00------­ $12,000.00 KFNF -- Shenandoah, Iowa .••••••••• ------B4-TC.37 __ KFNF, Inc••••••••••••• .:. ••••••••••••• Henry Field CO----·------Henry Field.------61,000.00 Symons Investment Co ______8 26,000.00 Nelson R. Darragh------­ £ui:er l~:llili: :~::::::::::::::::::::: 29,349.09 fii1r:: _?~~~~~~~~~~~::::::::::::::::::::::::::?::::~~===~::::::::::::: - ~E~8:~ ~ -~~~~-!~~;=~~~i=~~=~;=·::::::::::::: Luther L. HilL ------­ Star-Times Publishing CO------­ 29,349.09 KOFG __ Oklahoma City, Okla·----·------~ B3-TC-25 .. Ok.ahoma Broadcasting Co., Ino•••••• Present stockholders •• ------­ HaroldHale V. V.Davis llough._--- ______------_ 12,729.90 KG F G •• ___ •• do . •. ______---·------,Bl-l-TG-40 .• __ •.• do ••••.•••• ___ ------~ ------Hale V. Davis------­ 115, 143. 18 KOKO •• Wichita Falls, Tex.·------·------. Ba.-TC-'23- Wichita Falls Broadcasting Co-•••••••• Present stockholders.------­ Amon G. Carter.------27,412.13 KIRO --- Seattle, Wash------·------B5-TC-11L. Queen City Broadcasting Co •••••••••• Charles M. Tomlensen Holding Cor· Saul H. Haas.------(3) poration. . Naomi F. Bengston ______95,194.16 KLZ •••• Denver, Oolo ______· ·------~------~-- .. --~- · B5-.TG-18 •• Th~ ReYnolds Radio Oo.~ Inc.------~­ E.Hearst K. Gaylord Radio, Incand ______Inez K. Gaylord •.__ KNOW .. Austin, Tex•• ------.B3-TC-47 --· KUT Broadcasting Co------Southwest Broadcasting Co••••••••••• 10,142.38 KNX .••• Los Angeles, Calif•• _------___ .. ______'B5->TO..:.IS4 •• Western Broadcast Co ______. ___ _ Present stockholders •• ------­ Columbia Broadcasting System, Inc•. 177,192.15 WOAX •• Burlington Daily News, Inc ______Bertha Jackson.------Mary Jackc;on Forbes ______10.816. 21J WCBD •• ~:~~:i~~: rii~·-::::::::::::::-:.:::::::::::::-::::::::::::::::::::: : ~t~8~:: W<;JBD, lnc •• ------Present stockholders.------L. E. Moulds, W. F. Moss, Gene D. 35,600. 00 Dyer, E. M. Ringwald. WOHV•• Charlottesville, Va •• ·---!- B2-TC-:-58 •. Community Broadcasting · Corpora­ w: B. Btown ••• ------~----- Present stockholders.------20,318. 00 ------··------1.--.. tion. Pensacola Broadcasting Co______WOOA.. Pensacola, Fla.------~----·------B3-T0-2L. 1.Present B. Fishburn stockholders.------______The News Journal Co______38,900. 00 ,.B2-T0-57 -- Times-World Corporation ______Various members of family of J. B. ------WDBJ ___ Roanoke, Va. _------.------: ... ·----- • : • + Fishburn • B5-T0-59 •• Durham Radio Corporation...... Present stockholders.------­ Durham-Herald Co______17,272. 88 ~~§TT~:: r~~~:~r ~Pa~:.:::::::::::::::::~:::·::::.::::::::::::::::::::::::t B2-TC-12. ~ Associated Broadcasters, Ino...... Steinman Hardware Co •••------­ Mason-Dixon Radio Group, Inc______1g, 000.00 W GOM __ Mississippi City, Miss••••• ·------~------~------B3-T?-20~- ,W:G9M, Ino~------:·~---- Grace J. Stewart------­ Sam Oates______6, 718. 22 7 , [ Fl»otn6tes at end of table] · Applications for consent under sec, 810 of the Communications Act of 19$4 to transfer control of licensee corporation granted btt Federal Communications Commiuion during period from July!, 1955, to Dec. 8, 1958-0ontlnued

Original t:)tation Location Fileno. Licensee corporation Transferor Transferee cost, fixed assets

Olean Broadcasting Co., Inc ______Present stockholders.------Olean Times Herald Corporation.____ $7, 320. 84 ~Hi~~ ~: 8\:~~i:r;ct,Yoliio:::::: ::::::::::::::::::::::::::::::~-:.-:.:~:::::: :::: ~t+8:~~ :: Radio Air Service Corporation •••••••• Plain Dealer Publishin~ Co. U. B. 00------383,628.88 WHOM.. JerRey City, N. L. --·------Bl-TC-38 •• New Jersey Broadcasting Corporation. Harry F. O'Mella & 0 MeliaOntdoor Paul F. Herron and Joseph Lang _____ 119,204.9~ Advertising Co. Monroe F. Rubin and Ruth Rubin .•. U. B. Co ______'\VJ A Y. __ Cleveland, Ohio-----·--·------·------B2- TC-28 .• Cleveland Radio Broadcasting Corpo- (I) ration. WLAP •• Lexington, Ky------B2-TC-64. _ American Broadcasting Corporation of T. C. Rush ••• ------J. Lindsay Nunn______20,303.37 Kentucky. Joplin Globe Publlshlng Co______WMBH .. 0 Joplin Broadcasting Co ••• ------­ W. M. Robertson and W. H. Spurgeon. 14,000.00 WNBR._ ~~~ph~, ifenii::::::::::.:::::::-::::::::::::::::::::::::::::::::: :t+8=!~ :: Memphis Broadc!l.!l~ing Co •••••••••••• Present stockholders.------Memphis Commercial Appeal, Inc.••• 42,139.90 woe ___ _ Tri-City Broadcastmg Co••••••••••••• Palmer School of Chiropractic______B. J. and D. D. Palmer______16,230.13 wov ____ ~::,e~~~,' ~w..:::: ::::::::::-:::::::_::::::::::::::::::::::::::::: ~i::f8=U:: International Broadcasting Corpora- John, Oiustina B., and Mariannina Antle Bulova •• _------90,321.09 tion. C. Iraci. WOWO.. Fort Wayne, Ind •• ------·-----·-·------···--·------B4-TC-43 •• The Main Auto Supply 00----·-··--- Present stockholders •• ------Westinghouse Electric & Manu­ 246,781.83 facturin~ Oo. WRDW. Augusta, Ga ••• ------··------·------B3-YC-61.. Augusta Broadcasting Co ••••••••••••• _____ do .••• ------Arthur Lucas, W. K. Jenkins, and 20,000.00 Frank J. Miller.

Claimed value of Stock Percent­ stock trans- Replace­ trans­ age of ferred in­ Station Considers· Date granted ment cost earnings by Com­ Station Location Fileno. or fixed ferred total cluding Period (net tion (com­ stock physical profit) paid mission assets mon) Issued and in­ tangible values

Percent Months KCKN.. Kansas City, Kans------B4-T0-7------$13, OCO. 00 100 100 $15,000.00 12 $2,207.87 $18,000. 00 Nov. 12,19311 KFN F --- Shenandoah, Iowa.·------B4-TC- 37·------53,793.30 250 42 25,000.00 1 326.00 37, roo. oo Jan. 14,1936 B5-TO-li2...... 26, 000. 00 164,11 65% 29,000. 00 6 17,926.50 10,193.09 July 22,1936 ~~~t-_·_~ ~l~~ia:V~~---~:::::::::::::::::::::::::::::::::::::::::::::::::::: B4-TC-24------29, 349. 09 350 100 23,549. {)4 6 94.08 60,000.00 Sept. 24, 1936 KFR U ______.• do .• ------B4-TC- 63------.:.------29, 549. 94 350 . 100 30,000.00 5 11,106.50 91,277.36 June 20, 1936 KG FO -·- Oklahoma City, Okla;------·------B3-TC-25------·------12,000. 00 133~ 66% 12,000.00 15 11,600.00 6,000.00 Jan. 2R, 1936 K:O FG. ______do . •. _-----_------·------BB-TC-40•••.•••••.••••• ------~------15, l/j7. 53 133~ 66~ 7, 610.00 6 1, 076.01 22,250.00 Sept. 29, 1936 lrO KO ___ Wichita FBll , Tex.------B5-TCB3- Y0-19- 23------·------...... ______25,17, 000.412. 0013 350 100 90,000.00 6 3, 602.58 105,000.00 S~t. 24, 1935 KIRO. __ Seattle, Wash._------­ 975 38 10,000.00 5 1, 158.00 12,000.00 J y 30,1935 KLZ _ _ _ _ Denver, ColO ------­ B5-TC- 18______58, 100.00 23,400 52 45,000.00 6 24,160.18 104,000.00 Do. KNOW.. Austin, Tex._--.------·------B3-T0-47 ------·------10,006.50 10,000 100 49,000.00 6 1, 100.00 45,000.00 May 4,1936 KNX •• __ Los Angeles, Calif. ______------B5-TC- 54 ...•••• ------217, 237. 85 1, 500 100 236,520.21 12 107,933.70 1, 250, 000. 00 July 17, 1936 B1- TC- 56------Hi, 000.00 109 49 13,000.00 6 72.00 (7) July 17,1936 B4-TC-42------·------30, 000. 00 100 100 4, 700.00 6 1 5, 299.80 10,000.00 Sept. 22, 1936 ~gi~== ~:~r::v~Ye~=vi::::::::::::::::::::::::::::::::::::::::::::::::::: B2-TC- 68. _•••• ------15, ll65. 50 1,125 28 4, 300.00 6 I 341\.77 4, 500.00 Do. W 0 0 A__ Pensacola, Fla __ ___ ------· B3-T0-21.______25, 600. 00 200 200 24,000.00 6 I 1, 030.66 37,500. 00 Sept. 10, 1935 B2-TC-57------·------400 16 (7) June 20, 1936 B5-T0-59______14, 706. iS 684 100 --·s:ooo~oo· ------6- ---4:928:97- 13,260.00 Do. B2-T0- 12· ------19,000.00 3, 500 70 8, 925.00 3 I 661.78 22,500.00 Oct. 22,1935 !if~:: fffi~io7;~~:~;~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~ 280 100 7, 000.00 • 9, 200.00 Deo. 17, 1935 ~i=+8=~8=====~ :::::::::::::: :::::::::: ::::::: 7, ~~0. 84 123 33~ 7, 000. 00 9 --- =;:666~iiii" 12,300. 00 June 20, 1936 ~~~~---~ 8f:~~ia~ct.Yoiiio:::::::::::::::::::::::::::::::::::::::::::::::::::::: B2-T0-27------···--·-- ll63, 9 0. 80 1,000 100 ------6 I 6, 000.00 (8) May 28,1936 1, 875 6 I 5, 400.00 92,750.00 May 21,1936 WHOM.. Jersey City, N. J ------~ ------··------Bl-TC-38------.19, 294. 92 75 80,000.00 6 11,000.00 WJAY ..• Cleveland, 0 hio.••• _•• _- ___ •••••• _. __ •••••• ----_. ___ • __ • __ •••• ____ • __ B2-TC-28 •.•••••• -----_------. 27,560. 30 666,~ fl6% 16,000.00 6 50.00 (I) May 28,1936 WLAP ••. Lexington, Ky _. __ ------B2-TC-64------·-----·------­ ]8, 0513.13 2.'\6 51 9, 700. 00 12 2,114. 86 14,080.00 July 2,1936 WMBH.. B4-TC-41L •••. __ ••• _•••• __ ------···-----· _-·-. 13,000.00 90 42 14,000.00 6 /j, 220.58 30,000.00 Do. WNBR •• We~~~.0'i'enn:::::::::::::::::::::::::::::::::::::::::::::::::::::: B3- TC-44•..••• • --· •• _•••• ----••• ______------32,370.81 224 100 12,000.00 6 I 400.95 50,000.00 Do. woo ___ _ B4-T0-71 ••••• ------. _---- •• __ ••••.• ------·-­ 16,230.13 100 100 16, 000.00 6 3, g69 . .50 10,000. 00 Nov. 10, 1936 wov ___ _ ~::,e~~~,' ff.w..:::::::::::::::::::::::::::::::::::::::::::::::::::::: B1-T0-68 ------.••••• ------85,000. 00 766 100 1ll0, 000. 00 6 22,501.34 239,005.73 Nov. 24, 1936 wowo __ Fort Wayne, Ind..••• ------_------B4-T 0-43 ••.••• ----__ •• ----___ •••. __ ··------•• 43,060.83 800 100 157,000. 00 12 13,216.75 2UO, 000.00 July 2,1936 WRDW• • Augusta, Ga. ___ ------B3-YC-61 •• _•• - ~------18,153.90 80 100 26,000.00 6 5, 06~. 55 25,000.00 Do.

1 Red figures. 'Not known. :Not shown. • In stock. 1 Consolidation. • Merger. 7 Gift. !Stock in substance. sitp'pLementarv i1tfo~mati~n relati~ to aaaiunment application& where lea&inu of station propertv onlv is i~volved

f ... Rental, per ~ Annual Option year, if Station Locati~n File number LesSor Lessee · Period that lease is operative rental of to renew Period covered by option,tt exercised option to r equipment renew is l , exercised ~

l • Yes _____ KIDW __ Lamar, Colo __. ____ B5-AL-83 __ ,_ Lamar Broadcasting Co ~ ------The Soutb.Y.,est Broadcasting Co_ From Apr. 7, 1936, to Apr. 6, 1037_ $1,200 From Apr. 7, 1937, to Apr. 6, 1938, only- $1,500 WEEL.- Boston, Mass; ____ B1-AL-ll2 __ Edison Electric Illuminating Co. WEE! Broadcasting Co. (now From Aug. 16, 1936, to Apr. 1,1943. 219,000 None ____ ------·------o~ Boston. Columbia Broadcasting Sys------·----· teni, Inc.). Yes _____ WSGN __ B!rming~~· AI~- B3:-AL-85.-:- R. B. Btoyles d·oing busin~ss as Birmin~ham News Co ______From June 1, 1936, to Feb. 28, 1946_ 6,000 From Mar.1,1946, to Feb. 29, 1956,only. 12,000 f R. B. Droyles Furnitute Co. f

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. I . ~ co..... ·' I I -: 79Z. CONGRESSIONAL RECORD--ROUSE. FEBRUARY 3 Mr. WIGGLESWORTH. The principal item in the bill is impose a handicap, as I understand it, amounting to about the item of about $585,000,000, the appropriation for the Veter­ $12 per ton on the beet-sugar growers of this country. The ans' Administration. This is an item in which we are always action taken, I believe, has imposed a burden on the Federal particularly interested. You will find an increase in the item Treasury of something over $40,000,000 a year. It appears to for salaries and expenses amounting to about $7,000,000, an have carried with it no benefit to the millions of consumers increase providing for over 10,000 additional beds to be avail­ of sugar in this country. On the contrary, the price of sugar able in the fiscal year 1938. A comprehensive report in re­ today is higher than it was before the "teduction. The direct gard to all the various activities of this great agency will be beneficiaries are apparently those importing sugar to America found in the hearings. The total appropriation for the from Cuba, a list of whom will be found in the hearings. administration as a whole reflects a substantial decrease as Mr. CRA '\VFORD. Mr. Chairman, will the gentleman compared with other years. yield? I call the attention of the Committee particularly to the Mr. WIGGLESWORTH. I yield. increase in appropriations for the Interstate Commerce Mr. CRAWFORD. Did I understand the gentleman to say Commission. This increase is explained by two items: that the reduction in duty throws as a burden on the First, an increase of about $40,000 as a result of additional shoulders of the domestic beet producers about $12 per ton? duties imposed in respect to air mail; and, second, and more Mr. WIGGLESWORTH. Twelve dollars per ton; yes. important, an increase of about $750,000 as a result of addi­ Mr. CRAWFORD. It amounts to $1.10 per bag, and there tional duties in connection with the regulation of the motor are 20 bags per short ton. This, therefore, would make a carriers of the country. The task of the Commission in the burden of $22 per short ton. In other words, the duty was . latter connection is very great indeed. It is estimated that reduced from $2 per 100 to 90 cents per 100 on 96° sugar. some 150,000 carriers and brokers and a total of about 450,00.0 Mr. WIGGLESWORTH. The gentleman is correct. motor vehicles will come under the regulation of the Com­ Mr. CRAWFORD. So it would certainly be at least $22 per mission. In dealing with this problem I feel sure thgt the ton which has been taken out of the returns of the beet Commission will show the same ability and efficiency that growers of this country in favor of the sugar interests of it has shown in respect to other great problems in the past. Cuba. The Federal Trade Commission also reflects a substantial Mr. WIGGLESWORTH. I thank the gentleman. increase in appropriations, amounting to about $442,000. If present policies are to continue, it seems to me the status This increase is explained almost entirely by additional of the Commission should be carefully considered. work which is called for under the terms of the Robinson­ Mr. LEWIS of Colorado. Mr. Chairman, will the gentle­ Patman bill. The Commission expects to have available for man yield? work in this connection a total amount of $513,163. Mr. WIGGLESWORTH. I yield. The Railroad Retirement Board, affecting some 200,000 Mr. LEWIS of Colorado. Will the gentleman refer to the workers in the great railroad systems of the country, shows page of the hearings on which the list of these beneficiaries an increase in administrative expenses and a substantial appear? decrease in respect to annuities payable under this act. Mr. WIGGLESWORTH. I shall be pleased to place that Both are explained by litigation pending at this time chal­ in the RECORD. lenging the constitutionality of this legislation. In connec­ Mr. LEWIS of Colorado. I thank the gentleman; that is tion with this litigation the Court has held that the rail­ what I sought. roads of the country shall not be required to furnish infor­ Mr. WIGGLESWORTH. The information appears en mation as to service records which it was anticipated would page 573 of the hearings. be furnished by the roads. As a result, the Retirement Mr. Chairman, I do not want to take too much time, but Board has been compelled to place an additional force in the perhaps I may refer briefly also to certain points in connec­ field to obtain the information for itself. tion with some of the new agencies appearing in the bi11 for Mr. MICHENER. Mr. Chairman, will the gentleman the first time. yield? The Social Security Board is, of course, of vital importance to millions of people in this country. Mr. WIGGLESWORTH. I yield. As a matter of fact, it expects to have between twenty-siX Mr. MICHENER. Does the gentleman mean that the rail­ and thirty million beneficiaries in the near future. roads have refused to furnish the information they had? The total available a year ago was about $188,000,000. Mr. WIGGLESWORTH. I understand the Court has held The committee recommendation in respect to the next fiscal that the roads are not under obligation to furnish the infor­ year is approximately $255,000,000. Every cent requested in mation referred to at their own expense. The railroads have respect to annuities has been approved. Insofar as the ex­ felt that they should not be called upon to do the clerical penses of administration are concerned, the committee work in connection with furnishing the required informa­ recommends a substantial reduction as compared with the tion. I think there is no objection on their part to letting Budget figures. Nevertheless, as the chairman of the sub­ others come in and do the work. committee has pointed out, the amount recommended is Mr. MICHENER. I wanted to be sure it was not infor­ practically double the sum expended in the present fiscal mation which the company had in proper form but refused year. to give to the Board. The Commission requests a force of about 8,500; 4,000 Mr. WIGGLESWORTH. The Tariff Commission appro­ departmental; 4,500 in the field. It contemplates operations priation reflects a slight decrease as compared with the pres­ through 12 regional offices, and 289 district and branch ent fiscal year. The record raises the question, I think, of offices, or a total of 301 offices. the extent and value of the functions of the Commission Mr. MICHENER. Will the gentleman yield? under present. conditions and policies. Costs of foreign pro­ Mr. WIGGLESWORTH. I yield to the gentleman from duction, according to the testimony of the Commission, are Michigan. largely unobtainable at this time. In their place invoice Mr. MICHENER. Did those appearing before the com­ prices have been used, despite the fact that they have proven mittee on behalf of the Social Security Board express an unreliable in the past and in certain instances subject to opinion as to whether or not this force would increase from Government control. The extent to· which transportation year to year, or are we presumed to have the maximum this costs are available is not entirely clear. year? The State Department and the Committee on Reciprocity Mr. WIGGLESWORTH. I think there is special demand Information seem to have taken over in large measure the for an increase this time inasmuch as the provisions of title 2 work of the Commission under the present policy of taritf are going into effect. reduction. Mr. MICHENER. I do not think the gentleman understood In the trade agreement with Cuba, for example, it would me. What I intended to ask was whether or not we may appear that the findings of the Commission were not relied figure from the statement· of the members of the Board that upon. The duty on sugar was slashed to such a point as to this is the peak year so far as employment by the Board is CONGR~SSIONAL RECORD-HOUSE 193 .1937 . - concerned, or will it take a larger force ·to administer the Congress to make good those assets? Did · the gentleman Social Security Act in years to come? inquire with reference to those assets and liabilities? Mr. WIGGLESWORTH. I do not recall any specific testi­ Mr. WIGGLESWORTH. If the gentleman will permit, mony on that point. I think all previous experience indi­ perhaps I can answer his several questions together. cates, however, that the size of this agency will be increased Insofar as his first question concerning the amount re­ tremendously in the years to come. quested by the Reconstruction Finance Corporation is con­ The Rural Electrification Administration has also been cerned, it is my understanding that in the present fiscal referred to. That Administration had in the present fiscal year there was available to the Corporation a total of year about $1,200,000 for administration expenses, and a total $11,945,308; whereas the committee recommendation in re­ of $24,000,000 for loans received from the Reconstruction spect to the next fiscal year amounts to $9,500,000, or a Finance Corporation. For the next fiscal year the com­ reduction of about $2,400,000 on a liquidation basis. mittee recommendation is for $1,500,000 or thereabouts for I believe that the Corporation asked the Bureau of the administration expenses and $30,000,000 for the 1938 loan ·Budget for about $10,800,000 on the basis of a going concern. program. I may say incidentally that there is reflected in the reduc· The record indicates that this Administration has about 222 tion a decrease in personnel from about· 3,000 to about projects under way in 34 State, with a total value of about 2,400. $32,000,000. Loans have been made on an SO-percent basis As to the other question which the gentleman raises and for 20 years at a rate of interest of 2.77 percent. _ which is, of course, of great importance, the record indicates The Home Loan Bank Board also appears for the first time that there has been authorized a total disbursement by the with a recommendation of $1,140,000 as compared to $1,072,- Corporation amounting to $11,300,000,000, or thereabouts, of 212 for the past year. The record indicates a total member­ which $2,800,000,000, or thereabouts, represents allocations to ship of something like 3,800 in this organization. other departments, or for direct relief by order of Congress Mr. ANDRESEN of Minnesota. Will the gentleman yield? and not by decision of the Corporation itself. · Mr. WIGGLESWORTH. I yield to the gentleman from Of these totals, approximately $9,000,000,000 has been Minnesota. actually disbursed, including approximately $2,700,000,000 Mr. ANDRESEN of Minnesota. It is my understanding ·for allocations to other departments and for direct relief; that the Home Loan Corporation is liquidating. Is it neces­ Mr. GIFFORD. Mr. Chairman, will the gentleman yield? sary to have so many employees for a liquidating organi­ Mr. WIGGLESWORTH. I yield. zation? Mr. GIFFORD. Is it a proper method of furnishing infor­ Mr. WIGGLESWOR~. I may say to my friend . from mation to state that $2,800,000,000 are still assets, although Minnesota that I was referring to the Home Loan ·Bank it has been spent with nothing now to show for it? Is that a Boa.:r:d as distinguished from the Home Owners' Loan Cor­ proper method of bookkeeping for the R. F. C. and the poration. Treasury to follow? Mr. ANDRESEN of Minnesota. I misunderstood the gen­ Mr. WIGGLESWORTH. As the gentleman knows, both tleman. he and I have felt from the outset that this was not a proper Mr. WIGGLESWORTH. The committee recommendation method •of providing the sums necessary for these depart­ in respect to the Home Owners' Loan Corporation is a reduc­ ments or for direct relief. There never has been, to my mind, tion to the extent of $2,000,000 as compared with the Budget any reason why these sums should have been provided by figures. the Reconstruction Finance Corporation. They are nothing Mr. GIFFORD. Will the gentleman yield? more than direct appropriations and I see no justification for Mr. WIGGLESWORTH. I yield to my colleague from carrying them as assets. The gentleman has emphasized Massachusetts. clearly the impropriety of this procedure on the floor of the Mr. GIFFORD. The gentleman may perhaps refer to this House. later, but for fear he will not take the time, may I make this Now, may I say just a word as to the Home Owners' Loan statement. I notice a reference to the R. F. C. Have they Corporation. The totals available for the Corporation for asked for more money as a liquidating corporation than they the present fiscal year amount to about $29,000,000. The had before for servicing and expenses? I notice they claim Budget recommendation in respect of the next fiscal year they will need just as much money to carry on as they had increases that figure to about $32,000,000, although, as the before. gentleman from Minnesota has just pointed out, the Cor­ While the gentleman is looking that up may I read this poration is in the process of liquidation, no loans having been rather startling statement which I find in the RECORD, be­ possible since July 12, 1936. Your committee reduced this cause we have heard so much about the solvency of the recommendation by $2,000,000, making available an appro­ banks?- priation of $30,000,000, an increase of $1,000,000 as compared The proper servicing of these investments will continue to require with the present year. The increase is recommended in the close supervision when it is considered that an analysis recently light of testimony submitted of additional work in connec­ completed Indicated that 1,099 banks- tion with the management of property taken over under About one-third of the banks that have been helped­ foreclosure. have less sound common stock today than they had upon the Mr. Al'IDRESEN of Minnesota. Mr. Chairman, will the injection of our money. gentleman yield? I notice in the R. F. C. report of their assets and liabili­ Mr. WIGGLESWORTH. I yield. ties in order to balance they are carrying nearly two and Mr. ANDRESEN of Minnesota. How long, approximately, one-half billion dollars paid for relief under the orders of is it estimated it will take to liquidate the Home Owners' Congress as assets in order to offset liabilities of over $4,000,- Loan Corporation? 000,000 in notes they owe the Treasury. Mr. WIGGLESWORTH. I think the gentleman's guess is [Here the gavel fell.] as good as mine in that respect. The distinguished chair­ Mr. WIGGLESWORTH. Mr. Chairman, I yield myself man of the Appropriations Committee stated in the RECORD, 15 additional minutes. I think, that, in his judgment, the Corporation would prob­ Mr. MICHENER. Will the gentleman from Massachusetts ably be here 50 years hence. [Mr. GIFFORD] state from whose testimony he is reading in Mr. ANDRESEN of Minnesota. I noticed last year, after the hearings, because that is material? they started to function as a liquidating corporation, they Mr. GIFFORD. The R. F. C. report to the committee. acquired a large and expensive building and seem to have Mr. MICHENER. Give the page of the hearings. established themselves quite permanently in Washington Mr. GIFFORD. Page 957. This item of assets is $2,347,- Government society. 000,QOO plus, which are allocations for relief previously given. Mr. WIGGLESWORTH. It is fair to say there is a tre­ I want to ask the gentleman to be a little bit plainer. . Will mendous problem involved in the management and liquida­ the R. F. c., . ~ a corpo:ration, require. an appropriation of tion of the property which is coming into their hands. 794 CONGRESSIONAL RECORD-HOUSE FEBRUARY 3 • Mr. TERRY. Mr. Chairman, will the gentleman yield? Mr. GIFFORD. Any collection from principal must ap.. Mr. WIGGLESWORTH. I am pleased to yield to the ge~­ pear in another fund for the retirement of the bonds. tleman from Arkansas. Mr. WIGGLESWORTH. May I call my colleague's atten­ Mr. TERRY. In connection with the amount by which tion to the balance sheet on page 665. This might be helpful the committee reduced the appropriation for the Home in answering his question. Owners' Loan Corporation, it is my understanding that the Mr. GIFFORD. Is the collection of interest and losses by H. 0. L. C. feels that on account of the increased work they foreclosure and expenses incident thereto all in the revolving will have in connection with the foreclosures that are now fund? contemplated, they should have an additional allowance for Mr. WIGGLESWORTH. I do not think I can answer my this work. As I understand, they expect to foreclose about colleague's question more specifically. 160,000 additional mortgages and if they buy this property Mr. GIFFORD. I do not blame the gentleman. I have in, the Corporation will have to recondition it, they will have · asked several and get no explanation. No explanation was to have caretakers and people to examine the condition of given to the committee; therefore the committee would be the property, as well as take care of it, and I am advised the unable to answer it. contention of the committee is, as evidenced by the reduc­ Mr. CRAWFORD. Will the gentleman yield? tion in force, they will not need any additional help. I Mr. WIGGLESWORTH. I yield. presume the gentleman has gone into this very thoroughly Mr. CRAWFORD. When the Bureau ceases to function and I should like to have his views on the subject if he has and the balance of the revolving fund is covered back into not already stated them. the Treasury-when that occurs it is true that such losses Mr. WIGGLESWORTH. I may say to the gentleman in as may be indicated from time to time will have been ab­ the first place that I think a good deal of the expenditure sorbed and hidden or submerged, due to the way the revolv .. which he has in mind is not strictly administrative expendi­ ing fund and the manner in which it has operated; is not ture. It would, therefore, not be included within the limita­ that true? _ · tion, fixed by the recommendation of the Committee. Furth­ Mr. WIGGLESWORTH. I think the answer to the gen.. ermore, the committee recommendation does carry with it tleman's question depends on the result of the operations of an increase of $1,000,000 as compared with the funds avail­ the Corporation. able to the Corporation during the present fiscal year. Mr. CRAWFORD. Assume that the result of the opera· The estimated number of foreclosures as of June 30, 1938, tioi1S is a profit. Is it not true that such losses as may be is 160,000; the estimated dollar value is about $600,000,000. covered on individual items, individual foreclosures, will be The Corporation has made about 1,000,000 loans of a total submerged? value of something over $3,000,000,000. They have been Mr. WIGGLESWORTH. If the records are properly kept made on an 80-percent basis for 15 years at an annual I should suppose they would show all individual transac­ charge of $7.91 per $1,000. The foreclosures estimated would tions. amount to about 16 percent in terms of number of loans Now, I may mention in passing that the Corporation holds made or to about 20 percent in terms of dollar value. about one-sixth of the dollar value of all urban mortgages. Mr. GIFFORD. Mr. Chairman, will the gentleman yield It has a force of about 14,000 and maintains 54 State, 162 there? district, and 228 loan-service offices or stations. Mr. WIGGLESWORTH. I yield to my colleague from The CHAIRMAN. The time of the gentleman from Mas­ Massachusetts. sachusetts has expired. Mr. GIFFORD. With respect to the $30,000,000 that we Mr. WIGGLESWORTH. I yield myself 10 additional appropriate direct from the Treasury, understanding that minutes. all payments on principal have to be held to retire notes, is The Federal Housing Administration authorization recom­ there any money received from the payment of interest or mended amounts to $9,500,000 as compared with about other things covered into the Treasury? In other words, $11,040,000 for the present fiscal year. It reflects, as has it is stated that this goes to a revolving fund. What is that been indicated, an increase of $1,000,000 above Budget fig .. revolving fund? We can only assume that the revolving ures. The Administration has a total personnel of about fund is kept there to take care of losses and expenses. 1,100 departmental, and about 1,700 in the field, and main· Mr. WIGGLESWORTH. I may say to the gentleman, if tains 67 offices. The record indicates under title I of the I understand his question, that the funds of the corpora­ Federal Housing Act, the insurance of loans to the number tion go to the Treasury only upon liquidation of this of 1,300,000 of a total value of $500,000,000. It indicates activity. under title II insurance approved to the extent of about Mr. GIFFORD. Then the revolving fund is going to be $570,000,000. There is a $20,000,000 deficit over a period of kept there and every year we are going to actually appro­ 2% years with funds being provided by the Reconstruction priate $30,000,000 to a corporation that is not going to lose Finance Corporation. any money. Can the gentleman give some explanation of The recommended authorization for the administrative this revolving fund, from what source the money cernes to expenditure of the Public Works Administration amounts to go into the revolving fund and how it is used? I find noth­ $10,000,000 as compared with $26,000,000 available for the ing in the RECORD in explanation of it. present fiscal year. There is a corresponding reduction in Mr. WIGGLESWORTH. The gentleman, of course, un­ personnel from about 8,800 to about 3,100. The amount derstands that we are not making any appropriation for recommended is on a liquidation basis. this activity. All we are doing is placing a limitation on Now, Mr. Chairman, I want to make four observations in the administrative expenditures which the corporation oth­ concluding what I have to say, erwise would be authorized to make in its discretion without I want to say first that this bill, in my judgment, repre­ limitation. sents a real step in the direction of proper control over Mr. GIFFORD. I understand that. Then no money is expenditures of the so-called emergency agencies. For sev­ going into the Treasury and then going out of the Treas­ eral years many of these agencies have received funds for ury, as is usually the case, but they are to be allowed to pay operation out of lump-sum appropriations or the issue of this out of their own revolving fund. securities. Congress has had no control whatsoever over Mr. WIGGLESWORTH. The Congress simply exercises their expenditures. The dangers in this situation have been its control with a view to keeping the administrative ex­ apparent to many of us. I have personally appealed on penditures within bounds. more than one occasion for the reestablishment of proper Mr. GIFFORD. And can . the gentleman tell me exactly control. what the revolving fund may be at the moment and how it A year ago the deficiency appropriation bill carried the was obtained? following provision . . Mr. WIGGLESWORTH. I assume what my cot .. that SEC. 7. (a) Notwithstanding any other provtslon of law, none league has in mind is the result of the normal receipts and of the establlshments or agencies named in subsection (b) of _expenditures of .the Corporation. this section aha)l. after .Jlme 30~ 1937, incur &ny obligations tor 1937 _CONGRESSIONAL RECORD-HOUSE administrative expenses except pursuant to an annual appropria­ letters fUrnished me 'at my request, the first addressed to tion specifically therefor, nor shall any such establishment or agency continue to function after said date unless established by the- Secretary of Agriculture, under date of July 17, 1936; or pursuant to law: Provided, That nothing conta.ined herein shall the second addressed to the Comptroller General under date be construed to extend the period during which any such estab­ of August 5, 1936. lishment or agency heretofore has been authorized by law to function. COMPTROLLER GENERAL OF THE UNITED STATES, Washington, July 17, 1936. (b) 1. Federal Home Loan Bank Board; The honorable the SECRETARY OF AGRICULTURE. 2. Home Owners' Loan Corporation; . Sm: I have to refer to office letter dated March 16, 1934, 1n 3. Federal Housing Administration; reply to your letter dated February 13, 1934, relative to the filing 4. Federal Farm Mortgage Corporation; of rental and benefit contracts in· this office in accordance· with· 5. Federal Surplus Commodities Corporation; the provisions · of section 3743, Revised Statutes. The last para­ 6. Export-Import Bank of Washington; graph of letter of March 16, 1934, supra, is as follows: 7. Second Export-Import Bank of Washington. D. C.; "The contracts must, of course, be filed here. The law clearly 8. Reconstruction Finance Corporation; so requires. As a matter of fact, an audit of payments made 9. Electric Home and Farm Authority; thereunder would be· impossible without them. Inasmuch as it 10. Commodity Credit Corporation; . will be necessary to withhold approval .of all . such payments 11. Federal Emergency Administrat~on of Public Works; appearing in accounts until the original contracts are received, 12. Federal Savings and Loan Insurance Corporation; which will involve considerable additional work in this office, it is 13. Reconstruction Finance Mortgage Co. hoped a special effort will be made ·to transmit- them· here with no The effect of this proviso was to compel 13 of these unnecessary delay." . The transmission of the . contracts to this office was again agencies to come to Congress in respect to administrative requested in office letter dated July 9, 1934. - expenSes. More recently the Congress received the Presi­ · In your letter of Febrilary 13, 1934, supra, you stated that-=- · dent's Budget message; I quote from that message: "• • • Only one copy of each rental and benefit contract 1s . on file in this Department. On most of the contracts there. are Such of the emergency agencies and corporations as may be two payments or more extending over a period of at least 1 year. continued by. Congress should have all their expenditure require­ More than a year will probably elapse before we can release any ments made subject to the same scrutiny that is given by the of our rental and benefit contracts. For example, in the case of Bureau of the Budget to the expenditure requirements of the the cotton contracts for 1933, some of the payments will not be regular departments and establishments, and I recommend that a made ·until 1935. In addition to the need for having the contracts provision to that effect be included in any future legislation for here until after final payment is made, they will be currently the continuance of any such agency or corporation. required for reference in connection with the audit of the 1934-35 I hope, Mr. Chairman, that we shall not again see such a cotton program. . "There were over 1 million contracts entered into in the 1933 condition as has prevailed in this respect during the last cotton · program. Each contract file contains at least three few years. papers--an o!Ier, an acceptance, and a certificate of performance. · Two days ago the House had an opportunity to listen to Many of the contracts contain letters and other documents. The volume of work which would be involved in preparing dupli­ a splendid address by the distinguished gentleman from New cate copies so that we could forward the original to you would York [Mr. WADSWORTH]. He spoke on the history of the be so great that, in our opinion, it would be prohibitive. Our General Accounting Offi.ce, and of the vital importance of problem in connection with other commodities is similar. By the close of the calendar year 1934 we will probably have entered that offi.ce to Congress, and to the country as a whole. I into a total of 10 million or more contracts involving rental and share very keenly the sentiments which he expressed. I benefit payments. · have pointed out on more than one occasion on the ;floor "In view of the foregoing explanation, it is requested that the of the House iristances where proper ·regulation by the General Accounting Office not press the matter of the s;ubmission of the rental and benefit contracts until such time as this De­ Comptroller General seemed to me to ,be lacking. I again partment has completed its work on them." call the attention of the committee to the fact that there are Almost 2% years have elapsed since your letter of February today some 23 agencies of the National Government which 13, 1934, and it would appear that the Agricultural Adjust.. do not account to the Comptroller General. A list of these ment Administration should by now have completed its work on the contracts pertaining to the 1933 and 1934-35 pro­ agencies follows: · grams. . It is therefore requested, in_order that further delay LIST OF ACTIVITIES WIDCH DO NOT SUBMIT ACCOUNTS TO GENERAL in the audit of the payments made thereunder may be avoided, ACCOUNTING OFFICE FOR AUDIT _ that the contracts be promptly turned over to this office. Agricultural Credit Corporation (under F. C. A.). Respectf~y, R. N. ELLIeliefit .contrac~s be transmit~ed to yom pffic~ tn accordance wlth Home Owners' Loan Corporation (o!Iers to account). the provisions of section 3743, Revised Statutes. . Hospitals of various services. You are .advised 'that this Department. is currently engaged in Inland Waterways Corporation. the final checking of the com-hog reduction contract for the Insular governments' funds .in ,Treasury, .except .Virgin Islands. 1934 crop year. When this work is completed, these contracts Will Merchant Fleet Corporation (local audit). . . be transmitted· to your office. Panama Railway _Co. · The 1933. c·otton contracf is. still occasionally required for ref­ Panama Steamship Co. erence in connection with the audit of the 1934-35 cotton con­ Perry's Victory Memorial Commission (collections) • tracts. It is planned to make .the final check · of these 193·3 cot­ Reconstruction Finance Corporation. ton contracts. and turn them over to your office as soon as prac­ Smithsonian Institution (funds, etc.). ticable after the completion of the checking of the corn-hog Tennessee Valley AsSociation Cooperatives; Inc. reduction contracts. _ · Various· special deposits. The other rental and benefit commodity contracts entered into Virgin Islands (partial). by this Department cannot be released because all payments. to be approved under the contrects have not been made. The wheat There may be some good and sufficient reason why some allotment 'Contract, 1934-35 cotton contract, various types of one or more of these agencies should not account. It occurs tobacco contracts, ·1935 com-hog contract, sugarcane contract; to me, however, that the Committee on Expenditures in the sugar-beet contract, rice contract, and peanut contract all provide Executive Departments might well inquire into the matter for payments :upon proof of complia_nce for 1935 crop year, and at this date a large number of the final 1935 payments have not with a view to assuring a proper audit, insofar as possible, been made. of all agencies charged with the expenditure of Federal This ·Department is exerting every effort to complete all pay­ funds. · ments under all commodity contracts . as promptly as possible, and it is planned to make a final check of ~ontracts for each The troubles of the Comptroller General are not limited, commodity and transmit the same to the General Accounting I may add, to those agencies which do not account to him. Office immediately following the completion·of 1935 payments. · Sometime ago I became interested in a newspaper story Sincerely yours, referring to difficulties experienced in respect to rental and H. A. WALLACE, Secretary. benefit payments under the Department of Agriculture. The position of the Secretary of Agriculture is, to say the Under leave to extend, I insert at t~ point copies of t~o least, difficult to justify. Prompt and complete auditing of 796 CO.NG~ESSION~ ~ECOED-. HOUSE ;I[EBRUARY 8 I all agencies of the Federal Government expending Federal Mr. RANKIN. Mr. Chairman, will the gentleman Yield? 1 funds seems to me essential for the protection of any Mr. WIGGLESWORTH. I yield. , administration, for the protection of Congress, for the pro­ Mr. RANKIN. What were the three agencies the gentle­ • tection of the American people. man mentioned a few moments ago? ' A word as to propaganda. A number of years ago I Mr. WIGGLESWORTH. I mentioned the Rural Electri­ \ served in the office of the Secretary of the Treasury. In fication, the Social Security Board, and the Federal Housing those days if the Secretary or Under Secretary had some­ Administration. thing to say, he pressed a button and dictated a short re~ I call the attention of the Committee in this connection to lease. What is the situation today? I submit that the rec- a provision in a statute enacted by the Congress on October 1 ord before your committee indicates that a situation has 22, 1913. You will find it in the United States Code, title V, · developed today with respect to publicity in many agencies section 54, page 38. It is very short and provides as follows: . of the National Government which is absolutely without No money appropriated by any act shall be used for the compen­ justification. Millions of dollars of the people's money is sation of any publicity expert unless specifically appropriated for : being expended under such headings as the "Collection and that purpose. Dissemination of Information", "Public Relations", "Infor­ Your subcommittee has recorded emphatically its disap .. mational Service", and so on. The service rendered is in fact proval of the practice which has developed. I trust that in large measure propaganda by the agencies concerned. the agencies covered by this bill, and, for that matter, every Take the Rural Electrification Administration, for exam- other agency, will be guided accordingly. : ple. That activity expects to maintain a force of 45 people Just one more thought, if I may, in conclusion, in respect at a cost of $163,000 for the collection and dissemination of to the housing activities of this Government. The desire to information. This is in addition to a force of 23 at a cost alleviate poverty and distress among the masses of our of $70,000 for "utilization" or further education. The Social people is, of course, shared by us all, particularly in these Security Board expects to maintain a force of 97 persons at difficult times through which we are passing. Nevertheless, a cost of $233,000 for informational seryice. I call the at­ I think no one can effectively deny that we have at this tention of the committee to the fact that the record dis­ time too many competing, conflicting, and overlapping closes that during a period of 6 months this service prepared agencies in the National Government. The record before no less ·than 160 press releases, 450 magazine articles, 180 the committee in respect to the activities in the housing field speeches,- 3 moving pictures, and 60 hours of broadcasting. emphasizes this fact. Here we find, among others, the Fed­ The Federal Housing Administration contemplates a force eral Home Loan Bank Board, the Federal Savings and Loan of 120 at a cost of $500,000. Insurance Corporation, the Home Owners' Loan Corpota­ Mr. LANHAM. Mr. Chairman, will the gentleman yield? tion, the Federal Housing Administration, the Reconstruc­ Mr. WIGGLESWORTH. I yield to my friend from Texas. tion Finance Corporation, the Public Works Administration, Mr. LANHAM. I am very much interested in what the and the District of Columbia Alley Dwelling Authority. In gentleman is saying in this regard. At a previous session addition there is the Resettlement Administration, and other of Coniress I called attention to the enormous quantity of agencies, all endeavoring from one angle or another to con­ 1 printing being done . . We cat?- hardly go to our offices in tribute to the solution of the great problems in this field. the i:norniilg without finding a great deal of printed material, The purpose is one that appeals to us all. I submit, how­ most of which we throw in the waste basket. It seems to ever, that no one can read the record without an apprecia­ me that niuch of our appropriation that is intended to give tion of the lack of coordination and direction which exists employment and relief is being diverted to ·printing and ad~ in this field as a whole. I appreciate fully the contribution vertising agencies, to printing beirig done by the Govern­ which has been made by some of the agencies in this con­ ment Printing Office, whereas in an annual or semiannual nection, but surely there is ample room for improvement iii report these various agencies could give to the Congress or the service rendered. to the proper authority an account of what they" are doing. The record indicates, for example, that the National Gov­ They are not primarily advertising agencies, and it seems ernment, under title I of the Federal Housing Act, has to me that much of this money has been diverted from its actually placed itself in the position of guaranteeing loans proper purpose to advertising their own· ehdeavors. to the bankers of this country, which impose on the bor­ Mr. WIGGLESWORTH. I agree with the gentleman rowers of small income an annual interest rate to the extent thoroughly, and call hi& attention to the fact that the three of 9.72 percent. . agencies to which I have referred alone account for a total The record also indicates in spite of all statements to the expenditure in this connection of almost a million dollars contrary, that we have not begun to cope with the problem in a single year. presented by the living conditions of the poor in this country Mr. GIFFORD. · Mr. Chairman, will the gentleman yield? at this time. Mr. WIGGLESWORTH. I yield briefly. The United states, incidentally, is becoming, if it is not The CHAIRMAN. The time of the gentleman from Mas­ already, the world's greatest landlord. It is doubtful if any sachusetts has expired. agency of our Government is in a position at this time to Mr. WIGGLESWORTH. Mr. Chairman, I yield myself give us an accurate picture of the extent of our investment 10 additional minutes. or of the legal and moral responsibilities as a result of the Mr. GIFFORD. I want half a minute to express my own billion dollars that have been spent by the various Govern­ opinion as reflected in the following article in connection ment agencies. with that item: Testifying before your committee, Mr. Stewart McDonald, I see no reason on earth why press agents and promotion expertS Administrator of the Federal Housing Administration, made should be attached to a relief adm1n1strat1on. Certainly it is not the following statement, which I quote: necessary to advertise Santa Claus to the relief clients. They w1ll find the place without any high-pressure salesmanship. And why You have not asked me the question, but I will say that 1t must it advertise itself to the taxpayers? He has to pay, anyhow, would, of course, simplify the operation of all housing activities whether be likes it or not. His subscription is not solicited. It is of the Government 1f they were grouped together under one head. collected. Yet the Relief Administration and all its branches have But that 1s !or you gentlemen 1n Congress to determine. press agents, under one name or another, whose business is to turn Mr. Chairman, I submit that the time has come to take out "stories" about the poor, about the nobillty of the Government, and about specific cases. Photographers, ex-newspapermen, special account of stock. I recommend a sweeping survey of the writers, are all busy, not at administering a Government bureau whole situation with a view to clearer understanding, with a but at sell1ng that bureau's necessity, wisdom, and eftlciency to the view to elimination of conflicting and misdirected efforts in people who pay for it. this field which is so vital to millions of our fellow citizens. Mr. WIGGLESWORTH. I do not believe the people of · I am sorry to have taken so much of the committee's time. this country have any conception of the amount of money I appreciate its consideration. [Applause.] which we are spending in this manner. It seems to me The CHAIRMAN. · The time of the gentleman from another example of the waste and extravagance of recent Ma.ssachusetts [Mr. WIGGLESWORTH] has expired. _Iears~ ' All time has expired.· · · 1937 . _CONGRESSIONAL. ;RECORD-HOUSE

The Clerk read as follows: cost of property management is a_l'l administrative expense, · Salaries: For personal services in the office of the President and that the Home Owners' Loan Corporation cannot spend 1ncluq.ing the Secretary to the President, and two additional secre~ any money for this particular item except as authorized and taries to the President at $10,000 each; $133,680: Provided, That If employees of the executive departments and other establishments appropriated by Congress. Congress appropriates $32,- of the executive branch of the Government may be detailed from 000,000 for the administrative expenses of the Home owners' time to time to the office of the President of the United States Loan Corporation, there is no authority for officials to use for such temporary assistance as may be deemed necessary. an additional amount of money in the cost of personal Mr. COLLINS. Mr. Chairman, I move to strike out the supervision of properties acquired. This administrative ex­ last word. pense of property management, as I understand it, is for Mr. Chairman, I think the committee has done a fine such personal service as the supervision of appraising, rent­ piece of work in bringing this bill before the House with a ing, repairing, and so forth, of acquired properties by the reduction in many items. I compliment the chairman and personnel of the Home Owners' Loan Corporation. I hope the other members of the subcommittee upon this splendid the chairman of the subcommittee will further investigate piece of work. this matter and I believe he will find that my statement is I want to .discuss today one phase of this appropriation correct. It is my understanding that there is a limitation bill, and only one, not with a view of offering an amend­ on the ·cost of property management, said limitation being ment, but with the hope that the chairman of the subcom­ definitely determined by the appropriation made by the mittee and its members will increase the estimates for this. Congress. particular governmental activity after they have thoroughly Mr. WOODRUM. They can spend all the money they gone into the items that make up this particular appropria­ need for this department out of their funds. There is no tion. I refer to the appropriation for the Home Owners' limitation put on that. Loan Corporation. Mr.COLLINS. They tell me that they are not going to The Home Owners' Loan Corporation has made loans to spend any more money for any of these activities than the about 1,021,818 home owners, and the aggregate of the loans amounts allowed by the Congress ~s appropriations. At $35 per month the losses would amount to around is in exc~ss of $3,093,424,244. The annual administrative cost at its peak was .$36,000,000. _For 1936 it was slightly in $5,000,000 per month, and I insist that it is the part of good excess of $31,500,000. In 1937, if the Budget estimate for judgment and good management to give to this Corp~ration . an additional sum of $1,500,000,000 . is forthcoming, as I in· its management of property the amount that tbey say understand it will be, the cost of administration will be is necessary and that the Budget says is necessary to prop-: $30,500,000. The Budget after going into the activities of erly· carry ·on this particular activity. If we do not do that, the Home Owners' Loan Corporation very. carefully and this Corporation will lose instead of gain, all of which will painstakingly, even· to the extent of sending representatives come from the Treasury of the United States. I submit iD.to the regional, State, and district offices, submitted esti­ that the chairman of this subcommittee and the other mem­ mates to the Congress of $32_,000,000. I submit, Mr. Chair­ bers thereof should ~onfer still further with the manage- - man, that $32,000,000 should be given by the Congress to ment of the Home Owners' Loan Corporation. After they the Home Owners' Loan Corporation. have done so, if they find that· the Budget estimate should­ · The. property-management branch of the Home Owners' be given to this governmental activity, the cut of $2,000,000 · Loan Corporation is the only one that_has not reduced costs should be restored. I know my friend, the chairman of this of operation. In. 1935 there were 17,000 homes that had subcommittee, and I know that he will do it. been taken over by the Home Owners' Loan Corp,oration, and­ Mr. MAY. Mr. Chairman, will the gentleman yield? , Mr. COLLINS. I beg the gentleman's pardon, but my the expenditures for that-time were approximately $87_2,000. time _is too limited to yield. - - During the. fiscal year. 19S8, however,_this Corporation will have under its control 160,000 homes instead of 17,ooo; Mr. Chairman, there were .- twq governmental activities· created by the Congress of the United when Mr. McCORMACK~ ~ Mr. Chaim;lan, Will the gentleman. states Mr. -· yield? - · · Roosevelt went into office that had more to do with break- . Mr. COLLINS. , I Yield. . . . _ _ ' ing the backbone~ of the depression than any other' two activiti_~· They were -the-Home OWner~· Loan Corppration · , Mr. McCORMACK. How _will they get these 160,000 · 1 and the Federal Housing Administration. Up tO the tune­ ~~? . these two co~porations wer'e. 'created there were .approxi: , Mr. COLLINS. By .foreclosure; .. and the. -fore.closure .de­ ' ~ately $15,000,000,000 ·of loans on homes iri this c-ountry~ partment is· separate entirely from the property-manage­ one-third of them maturing each year: This -meant . that ment department. there had to be available each year $5,000,000,000 iri order· [Here the gavel fell.] _ to properly finance loans on homes in this country. With· Mr. COLLINS. Mr. Chairman, I ask unanimous .consent the creation of these two corpora;tions, a different policy to proceed for 5 additional minutes. was inaugurated and loans were made to mature in 15 years The CHAIRMAN. Is there objection to the request of instead of 3, with the result that now it takes only $1,000,-· the gentleman from Mississippi? 000,000 available cash to finance the loans on homes in this There was no objection. country, whereas heretofore it was necessary to have· Mr. WOODRUM. Mr. Chairman, will · the- gentleman $5,000,000,000 each year; and $1,000,000,000 is available and yield? will continue ava-ilable because· of the inauguration of this. Mr. COLLINS. I yield. new policy. It seems to me, knowing that when this Corpo­ Mr. WOODRUM. I know the gentleman wants accurate ration ceases business will have been self-sustaining and information. that there 'will have been no total losses as a result of its Mr. COLLINS. Yes. creation, that we should make available to it sufficient funds Mr. WOODRUM. The property management department with which to operate effectively. is not limited by this appropriation. Any expense to which [Here th!. gavel fell.l the Corporation is put for property management is taken Mr. TABER and Mr. McCORMACK rose. out of their funds and is not included in the appropriation The CHAIRMAN. The Chair recognizes the gentleman that we authorize in the bill. That is not an administrative from New York, a member of the committee. expense. Mr. TABER. Mr. Chairman, I wish to call the attention Mr. COLLINS. Then, if the gentleman from_Virginia is of the House and the Congress to some salient facts in con­ correct in his statement, certainly the Home Owners' Loan nection. with this appropriation, and especially to some Corporation could use $2,000,000 or any necessary amount things in connection with the emergency agencies th~t are availabl~ in the expense of property management. I am con­ provided for. fident, however, that the chairman of-the subcomritittee is The Federal Home- Loan Bank. is taken care of with mistaken in his statement. If the gentleman from Virginia .upward of a million dollars. The Home Owners' Loan will confer with the proper omcials I am sure he will fuid 'the Corporation is allowed $30,000,000. .798 CONGRESSIONAL RECORD-HOUSE FEBRUARY 3 The Home ·owners' Loan· Corporation has mortgages out­ I was amazed to hear the gentleman from Mississippi say standing approximating $2,800,000,000. The expense for they expected to own 160,000 homes next year. They have servicing those loans and taking care of the property to be foreclosed on about 17,000 homes up to the present time out taken over will amount to $30,000,000. of mortgages approximating 1,300,000, according to his · The Farm Loan has outstanding mortgages totaling statements. $2,000,000,000, and their total expense, including taking care The purpose of the Home Owners' Loan Corporation in the of $125,000,000 worth of property that they have had to take emergency was to prevent the squeezing out through fore­ over, is running at the present time at the rate of approxi­ closure and prevent the bringing about of a reduction in the mately $11,000,000 per year, indicating that the Home Loan number of homes owned in this country by individuals. Not Board mortgages are costing much more to service and to only was it deserving and .worthy legislation from the angle look after than are the farm loans. of the individual, but from the angle of the Government it It seems to me it is absolutely ridiculous for these people was very important. The home owners constitute a very not to reorganize their business and put it on a sound basis important element in our Government. They are an impor­ and get down to earth. Frankly, I believe that the $30,- tant part of our middle class. A strong middle class is one 000,000 could very largely be reduced and still have more of the necessary elements of the existence of a strong stable efficiency. If they would put. into effect the servicing sys­ government. The legislation creating this Corporation had tems that are in vogue in savings and loan associations and as its objective not only the assistance of the individual home in savings banks which handle these mortgages, and they owner but of doing something on a brood scale which would were kept accurate and currently up to date, I believe they be of invaluable assistance to the continued strength of our could get along with very much less help. Government. Mr. Chairman, all of these things have to be paid out of This Corporation has gone through one period. Now it is the Treasury of the United States. Until they systematize coming to the other part-.:..-the question of foreclosure. Those their business and put it on a sound basis we are not going who administer the law must keep in mind that only those to have efficiency. I hope when we get to this matter we will home owners were eligible who were unable to continue their not appropriate more than $30,000,000 which the committee mortgages with private banks. has recommended, and, if possible, I believe we should From the bankers' angle they were bad risks; in any reduce this item. event they were faced with the danger of imminent fore­ There are several other items here that are extremely closure. That is the class of home owners this bill was large. aimed to assist. When it comes to foreclosure, the officials There is an increase of a million dollars over the Budget who are administering this act · of Congress should remem­ in the case of the Federal Housing Administration. There ber that the act was drawn by the Congress in a spirit of are a great many duplications of activities in the nature of humaneness, and we expect that it will be administered by appraisers and all that sort of thing as between the those who are administering that particular law in the hu­ H. 0. L. C. and the Federal Housing Administration. There mane spirit that the Congress intended. are many places where with equal efficiency the same ap­ Mr. Chairman, I hope we will not have 174,000 fore­ praisers could do the work for both organizations. There closures at the end of the next year. I hope the members should be cooperation between the various organizations so of the Board and those entrusted with the administration that the expense to the Government may be reduced. If that of that act will act with humaneness, and that there will plan were followed, we would be able to get along without be no hasty or arbitrary action. I hope every-consideration allowing for this increase above the Budget estimate. will be given to the home owners. That is what the Con­ · Then there is the R. F. C., with practically $2,000,000,00D gress intended. ·True, we gave them a moratorium period, of loans outstanding, most of which are in the process of but in many cases it is not enough. The only group that liquidation.' could benefit from the law was a group faced with imme­ [Here the gavel fell.] diate foreclosure by the banks who held the mortgages. Mr. TABER. Mr. Chairman, I ask unanimous consent to Many of these people have recently gone back to work, but proceed for 2 additional minutes. they have to be given further time. Discretion under the The CHAIRMAN. Is there objection to the request of law exists with the Board and the officials of this corpora­ the gentleman from New York? tion to extend the humane consideration intended by the There was no objection. Congress. . Mr. TABER. Mr. Chairman, there is the R. F. c. with I rise to speak, not from any angle of criticism, because nine and one-half million dollars. This organization is on the evidence to date I would not be warranted in being practically upon a liquidating basis. Very litt~e in the way a critic. However, I have noticed recently a tendency with of new loans is to be expected in the next year. It seems as respect to foreclosures which might warrant fair criticism if that organization could get along and function efficiently iri the near future unless caution in this respect is em­ Without requiring a very considerable amount of help. ployed by those administering the law. I rise to urge the Then there is the Public Works Administration with a Corporation to use caution and judgment, and to warn pay roll of $10,000,000, and it likewise is under liquidation. them that unless they do so, criticism will follow. They have not, in fact, any securities to liquidate or not a Mr. ENGEL. Mr. Chairman, will the gentleman yield for sufficient amount to justify that amount of money. a correction? Mr. Chairman, I hope the House will proceed along the Mr. McCORMACK. I yield. line of trying to keep the expenses of the Government down Mr. ENGEL. The gentleman stated there were 17,000 a.nd trying to save some money for the Federal Treasury. foreclosures and I wish to correct that statement. It does not make any difference whether these funds are Mr. McCORMACK. I based my statement on what the paid by the H. 0. L. C., the P. W. A., or any other o~aniz9:.­ gentleman from Mississippi [Mr. CoLLINs] said in that re­ tion, the funds ultimately come out of the Federal Treasury. gard. [Here the gavel fell.] · Mr. ENGEL. On page 633 of the hearings the gentleman Mr. McCORMACK. Mr. Chairman, I move to strike out will find a statement by Mr. Fahey to the effect that the the last two words. total number of foreclosures sent to the legal department Mr. Chairman, in view of the {act that the activities of the with instructions to initiate court action aggregated o2,221 Home Owners' Loan Corporation have been discussed, there cases to November 30, 1936, involving an amount of are a few observations I feel constrained to make~ not by way $248,688,601. of criticism, because I dislike to develop the mind of a critic. Mr. McCORMACK. I thank the gentleman for the cor­ What I shall state will be an expression of views which have rection. recently developed in my mind as a result of some of the In conclusion, I hope the officials who are administering foreclosures that the Corporation has been engaged in this act will keep in mind the underlying intent and spirit recently. of the Congress. When I voted · for that· bill I intended 1937 CONGRESSION-AL RECORD-HOUSE 799 individually, and I know my. colleagues also did, that the because the. mortgagee then becomes accountable. for_ the element of humaneness should be considered and that when . rents and profits, so that no banks, . corporations, or even · the time came for foreclosure those entrusted with the duty .. loan sharks in the State of ·Maine; if such there be, so far _ of administration would recognize such intet:.tion on the as my knowledge has gone; have ever resorted to this method part of the Congress and hold off foreclosure as long as of foreclosure, except in most extraordinary cases. But in possible in order that as many home owners as possible the State of Maine today, in· repeated instances that have . would be able to retain their property. [Applause.] been brought to my attention in the past few months, the · Mr. WOODRUM. Mr. Chairman, we have not reached Government, after commencing foreclosure in-the usual way, the item for the Home Owners' Loan Corporation, and there while the foreclosure is still in process with several months ­ has already been 20 or 30 minutes of debate. I have no to run-in -the middle of ·a Maine winter-has started court dispo.c:;ition to shut off Members froni speaking, but I hope wa ' prccedure· to eject the· people ·from possession and throw ­ can read along in the bill for a while, and I therefore ·a:sk · them; literally; out into the snow and cold of Maine.- So unan:mous consent that all debate on this paragraph close ·far as my knowledge in ·25· years in ·Maine goes no corpora­ ih 5 minutes." tion, no individual, not even -the worst loan shark; has ever · The CHAffiMAN. Is there objection to the request of the resorted to such a process as is now being -practiced by the gentleman from Virginia? Government of the ·United States. . There was no objection. I may say in justice to those in authority here that I have brought this matter to their attention and they have HOME SEIZURES IN THE STATE OF MAINE assured me of most sympathic consideration of whether a . Mr. BREWSTER. Mr._Chairman, while discussion of the halt shall now be called. So far as I can discover, certain Home Owners' Loan Corporation and its policies seems to individuals in Maine, who will get some fees by starting be the matter immediately before the House, I rise, not only these proceedings, ·have advised this process almost un­ to express my full sympathy with what the gentleman from precedented in our State. The chief immediate result is to Massachusetts [Mr. McCORMACK] has just said regarding increase the costs and make the Government responsible consideration for the borrowers by the Government, but to for the care of the property and for the rents and profits. s_ay also that I know that in many instances the Corpora­ I hope that what I say here may result in suspending these · tion has shown such consideration. I do not, therefore, rise evictions and that in the future the Government may follow to criticize their action in foreclosure or to commend it, the usual practice in the State of Maine in such cases. although the record is somewhat startling when we realize The Clerk read as follows: that 66,000 American homes are now being seized by the G-overnment of the United States. Total, Executive OtHce, $494,478. The present policy of the Home Owners~ Loan Corporation, Mr. COCHRAN. Mr. Chairman, I move to strike out the however, in taking possession by court action of homes during last figures. - the process of foreclosure is almost unprecedented so ·far as 1\.fi'. Chairman, I would like to call the Committee's atten· the State of Maine is concerned and is particularly unfortu- · . tion to the·-fact that you are approaching the appropriation· nate in turning people-out of their-homes in the middle of a for-next year for the independent offices-. I -have -been told· Maine winter. by some Members of the House that I am rather ·excited ­ . From the standpoint of the Government, the policy is also and get. too critical over some of the independent establish- . open to serious question, as the Government becomes ac­ · ments. In answer to that, I have some ·responsibilities as countable for the· rents and profits -during the months re- · 1 chairman of the Committee on Expenditures that I am not maining to complete foreclosure. The property also suffers r go~g to shirk. I only wish the -time would permit me-to go from lack of occupancy during the cold winter months. into d~tail CQncerning the growth-of some {)f . the· independ­ LOW FORECLOSURE COSTS IN MAINE . ent offices, but I express the hope the Special-Committee -on Whether the same policy is being -followed in other States , Reorganization will-and I think it will-look into some ·of I am not informed, but the State of Maine would seem en­ these activities. · · · titled to some consideration from the fact that the foreclosure -­ I want particularly to _call your attention now to the-ap- costs in the State of Maine are the lowest in the country, as . . propriations for one .of these agencfes provided for -in "the shown -bY the repart Of the hearings on the independent . bill, and that is for The National Archives; which prov-ides. offices appropriation bill, on page 656, where it ·appears that for. an additional appropriation ·or $135,000. over .and above the- the amount they had this year. I understand that. while. I was .absent from the .Chamber . Total foreclosure costs vary from about $10 fn Maine, which iS the lowest, to approximately $300 in New York State and approximately ~ my good friend from Virginia [Mr. .WooDRUM] produced. a the same in the State of Illinois. ,- The average in the country is lot of pictures showing where the Government documents around $150 a case. have been stored prior to the time The Archives-was erected. -. ONE .HUNDRED AND SIXTY THOUSAND FORECLOSURES · :. I .know something about _The Archives and the original · ; With 66,000 homes now in process of foreclosure and with idea was to build a small structure something like the Folger , 100,000 more foreclosures-in immediate pr.ospectin the coun­ Memorial to store a few rare documents·, such as the.Con-_ try during the.coming year, it is startling to discover that the stitution, . .Declaration .of ,Independence, treaties, proclama- - ~ Corporation -is departing from the·long":'"established· practices · , tions of . outstanding _ intere~t; and SO ; forth. · ·· in Maine in cases of.this character. · But. what has. been_done? _ I am giving you an estimate, Within the next year the Home Owners' Loan Corporation. as I do not have .the correct figures before me; but, believe expects to "own more individual pieces of property than were me, I will give the minimum, not the maximum. The build­ ever in a.single ownership-before, and these properties will he ing. and equipment .has cost over $12,000,000- so far. The scattered throughout nearly. every county :in the United last allocation· was for three and.a half million-dollars for · States." stacks to be built in the enclosure; that -might have in-' This is a sufficient indication of the character of the prob­ eluded equipment, but I am not sure ~b_out that. There -is lem with which we must be prepared to cope. - . , appropriated $752,000 in this bill, an _increase of $135,000 HALT EJECTIONS over funds available for the current year.- · I wish to speak of a·specific matter in the State of Maine, I quote from the report: which- may exist· in other States; which, I think, if it were This increase .is not because of any. added function, but repre-· sents the normal expansion necessary to man the -addiUonal stacks­ properly considered by the· Corporation would certainly be and files which will be available next year. This expansion will­ called to a halt. This concerns the procedure in foreclosure. continue gradually over an estimated period of 10 to 15-years, and· In many instances in Maine-! do not know- about -otmr will reach -an ultimate personnel total. of 600- to 700, or . there­ states-foreclosure which · requires a · period of 1 year-has abouts. _ been commenced by the process of publication-. Foreclosure· - The space available today is the same -amount available· by taking possession is most unusual in the· state of Maine, a year ago; -· Read -the hearings. You will -see· the head of· 800 CONGRESSIONAL -RECORD-HOUSE FEBRUARY 3 'I1le National Archives states the new stacks are not ready;' these monumental structures in the District of Columbia. will not be ready for some time, and that advertisements I thought I had that fight won until my friend Mr. Ickes have not even been sent out for bids for the equipment to came along and licked me; and how did he lick me? He go into the stacks. What good are the stacks without the induced the President to approve his order to put these equipment? There is no indication they will have any $3,500,000 worth of stacks inside of The Archives Building. additional space within a year; still they want a lot of new You do not know they are in there, but they are there; they employees. They have more stacks now than they will be . are building them. I repeat, if we had a warehouse here able to fill in years if only real historical documents are we could take documents away from Government buildings retained. and release the space for desk room. It could be constructed The organization had been in existence, paying out Gov­ in the southwest section, not a monumental building, but a ernment money, for over a year and never had one meeting concrete building. You would not have to construct walls of the council that is composed of the heads of the executive but use heavy wire to partition off the space. The file departments to find out what they should do until the com­ clerks now handling these documents could go along with mittee, of which i am chairman, held hearings. We forced them, and whenever the officials needed some of the old files them to have a meeting of the council. I can prove this they could be sent up by messenger and returned when they statement. I have copies of letters I wrote to Secretary had served their purpose. Archives or no archives, you are Hull, calling his attention to the situation. going to be forced to come to this some day. Here you have a structure costing well over $12,000,000, Mr. MEAD. Mr. Chairman, will the gentleman yield? and as the hearings on this bill show, you are going to fill Mr. COCHRAN. Yes. it with a lot of ti·ash which had better be in ashes. Mr. MEAD. The gentleman has given us a very apt illus­ The first documents they took were those of the Food tration of the rapid growth of a new agency. He has Adm.inlstration, which the Government had housed in the brought out some very interesting information. I particu­ White House garage. Now, if you are going to save all the larly like the suggestion he makes with regard to a storage records of the Food Administration as historical documents house for ordinary documents. If the fight the gentleman you had better start constructing some new additions. You made had been won and carried to consummation, it would will find a few documents of historical value, but the way only be necessary for us to have filing clerks in the store­ C:le Archivist described how they are numbering these docu­ house to file away these old worth-while records. Under ments leads me to believe they will retain tens of thousands. existing circumstances, however, in order to secure employ­ The people have invested a tremendous sum in this build­ ment in The Archives, one must have had a postgraduate ing. It should be used wisely. It seems to me right now is course at one of the large universities of the corintry, as the time for the council to get together and come to a sane well as considerable experience in some similar institution. understanding of just what is to be the. policy in the future This is necessary in order to qualify under their civil-service and stay within that policy. Investigate and learn just how requirements. many records are being placed in The Archives that are Mr. COCHRAN. It depends on who you are and who is already in the Library of Congress. Frankly I feel if the behind you. law had been properly drawn, this agency would have been Mr. MEAD. Except, of course, those who got in when made a part of the Library of Congress. Probably I am too the agency was started. The thought the gentleman has in critical, but the American people are going to become mind is this: In having a storehouse for ordinary records critical if we do not soon put the brakes on these independ­ we would provide work for filing clerks, while in this monu­ ent agencies that keep reaching out for more and more. mental building on the Triangle, of course, a college degree We owe something to the taxpayers we represent, and it is necessary to obtain employment. There is room for both will not be long until they call us to account. They do not buildings. Ordinary documents could be- filed in a large object to relief appropriations to care for the needy, but storehouse and valuable documents would be preserved in they will object to the enlargement of Government agencies the archives. when there is no need for it. Mr. COCHRAN. I am going to find out what The Archives is doing, because I am going to have them before The CHAIRMAN. The time of the gentleman from Mis­ my committee again. souri has expired. Mr. WOODRUM. But the gentleman had them down Mr. COCHRAN. Mr. Chairman, I ask unanimous consent there a year ago, did he not, and did he find out anything to proceed for 5 minutes more. then? The CHAffiMAN. Is there objection? Mr. COCHRAN. I found out plenty but practically noth­ There was no objection. ing whatever from them. Mr. COCHRAN. Mr. Chairman, they have 1,200,000,000 Mr. WOODRUM. Has the gentleman been down there individual documents in the War Department, and these for a year? · documents show the history of every man and woman who Mr. COCHRAN. No. But I am going back. We have ever served in the Army. The same applies to the NavY. this set-up. I want to keep it within bounds, and I want They have the history and individual applications of every to see some results. Why they are now out in the States. man who ever served in the Post Office Department. They Why not do the job here before we go to the States? Let still have the papers of everyone who ever applied for a pen­ the State historical societies take care of those W. P. A. sion, whether he had a right to a pension or not. There is projects. I hope every Member of the House will go down in the Patent Office the applications that were filed in that and see this beautiful structure. You will find the offices office since the time it was created, even those where the pat­ occupied by some minor officials in The Archives Building ents have long since run out. Throughout the Government are far more attractive than the office occupied by the you have a situation such as that. President of the United States. Some 6 years ago I attempted to have a warehouse or a The CHAIRMAN. The time of the gentleman from Mis­ Government storage house built in this city to store these souri has again expired. documents that are inactive but that the departments do Mr. MAY. Mr. Chairman, I move to strike out the last not want to destroy. I wanted to put them in this building word. which could be a filing house, with a few file clerks. There Mr. WOODRUM. Mr. Chairman, I ask unanimous con­ would be a space for every department, and in that way sent that all debate on this paragraph and all amend­ release the space in the various Government agencies and ments thereto close in 7 minutes. departments occupied by these documents now, so that desks The CHAIRMAN. Is there objection? could be put in. I have been advised that almost one-fourth, There was no objection. if not more, of the space now occupied by Government offices Mr. WOODRUM. Will the gentleman from Kentucky - fs taken up with old files, maps, and so forth. If my idea yield to me for half a minute? had been carried out or ~ carried out, we can_str­ [Here the gavel fell.] sav::ng devices" is the Remington-Rand Corporation, one Mr. DffiKSEN. Mr. Chairman, I rise in oppositio-n to the of the greatest strikebreaking concerns in the country. amendment. :r.m-. Rand, on a train running between New York and Hart­ Mr. Chairman, I shall take but 1 minute to say that in ford, ran a school for strikebreakers and offered $5 to my judgment the amendment offered by the gentleman from ·every mari who would break the picket line. . Massachusetts is pure surplusage. becaus~. if you will exam- , 1937 ... . CONGRESSIONAL RECORD-H.OUSE lne the bill · oil page · 31, you will find a. 8em1colon ·after -ranches, ·m the ·mines, ·m the orchards, ln. the forests, and "stenographic reporting services." Then you will find the elsewhere. If those 40,000,000 people, including the wives, words "office appliances and labor-saving devices." childten, and hired hands of these people engaged in these Can the gentleman specify in any respect whatever how various production enterprises, received a wage or a price his amendment is· going to have any effect at all, except to that compared favorably with those engaged in industry probably precipitate a question for· the General ·Accounting generally, I believe you could invent new labor-saving de­ Office to settle? vices, utilize every one we have, and still you would not be Mr. CONNERY. Will the gentleman yield? able to supply the demand for goods. Mr. DffiKSEN. I yield to the gentleman·from Massachu­ I believe the problem should be approached first from the setts. standpoint of making it possible for those who need the Mr. CONNERY. I may say to the gentleman that I would comfcrts and necessities of life to buy them. We can do be tickled to have the General Accounting Office decide what that by raising the buying power of these people who are a labor-saving device is. If the Comptroller General does engaged in production. Instead of cutting down production that, the electric eye will go out. That is what I want to and eliminating labor-saving devices, let us make it possible stop. · for those who need these things and who are engaged in Mr. DffiKSEN. The electric eye is involved in only one production to buy the necessities of life. agency, and that is the Civil Service Commission. I may There ·are millions of farmers in this country who are not say that either the amendment will have no effect at all, or earning more than two or three hundred dollars a year. I it will have precisely the effect pointed out by the chairman may say there are millions of them. If those people re­ of the subcommittee, and we will throw overboard duplicat­ ceived a fair price for what they produced, they would have ing machines, mimeograph machines, typewriters, and an incentive to work, they would work, they would earn everything else. It depends entirely upon what interpreta­ money and would use this money to buy shoes made in the tion might be placed upon the language of the amendment gentleman's home town. Lynn, Mass., I suppose, is the as offered by the gentleman from Massachusetts to this bill. largest shoe-manufacturing area in the United States. If I do not believe he will accomplish any good at all except the people to which I refer could buy what they needed, to provoke a question that may be rather annoying for a those shoe factories would continue to run. They could little while. This amendment may cause no end of trouble employ every labor-saving device they have, they could to one of the departments and not accomplish what he is invent more, and still they would not have enough. after anyway. If the buying power of those people on the farms, in the Mr. CONNERY. I shall be very glad to have this ques­ mines, in the forests, in the orchards, and on the ranches tion raised if it will settle just what a labor-saving device is. · and engaged in other production could be . brought up equal You may be sure if this question is brought up in the depart­ to that which prevails in industry generally, we will not ments, they are not going to throw out typewriters or have to talk about labor-saving devices. For instance, we mimeograph machines. Those things are in there already have a surplus of cotton. If .the people who work on the and will not be thrown out. But it may serve to stop their farms and these other producers could buy the cotton goods bringing in these electric eyes and other. devices of the that they actually need in order to . enjoy a decent life, I Remington-Rand type that will throw people out of work. doubt if there would be a surplus of cotton goods. · Mr. MAVERICK. Will the gentleman yield? . Mr. WHITE of Idaho. Will the gentleman yield? Mr. DffiKSEN. I yield to the gentleman from Texas. Mr. PATMAN. In just a moment. · :Mr. MAVERICK. May I make this observation? The Mr. Chairman, I believe that the solution of this problem amendment offered by the gentleman would stop the use of and the approach should be from the standpoint of bringing dictaphones. Does he not think it would be better to regu­ the earning power of those people who are now suffering by late the hours of labor and give the people some time for reason of starvation wages and starvation prices up to a relaxation rather than to cut out labor-saving devices? higher plane. I believe we will then solve this problem. I Mr. DffiKSEN. That may be the ultimate effect of the now yield to the gentleman from Idaho. language proposed by the amendment offered by the gentle­ Mr. WHITE of Idaho. In carrying out the plan that the man from Massachusetts. However, I do not believe it has gentleman advocates, is not one of the first requisites a any effect at all. It may be found difficult for a department good, workable, adequate money system to be adopted by to supply itself with a new typewriter or any other kind of this Government? machine in order to get out literature immediately and at a Mr. PATMAN. Yes; but I think the first consideration is time when they might have very acute and pressing need a fair price for the goods which the people produce, and a for such service. I am in full accord with the gentleman's sound monetary system can be helpful in that direction. desire to prevent labor displacement wherever possible, but Mr. WIITI'E of Idaho. But it is only under an adequate - his amendment will not do it. money system that we can have a fair price? Mr. CONNERY. The gentleman from Texas spoke about Mr. PATMAN. I only have a couple of minutes, and I ·a dictaphone. You have to use somebodY at the other end of could not discuss a money system in that time. I hope· the that. gentleman will excuse me, as much as I should like to discuss [Here the gavel fell.] that question. Mr. WOODRUM. Mr. Chairman, I ask unanimous con­ The gentleman from Texas [Mr. JoNES] is chairman of sent that all debate on this paragraph and all amendments the Committee on Agriculture. The other night he made a thereto close in 10 minutes. speech over the radio, in which he stated that the para­ The CHAIRMAN. Is there objection to the request of the mount question today, so far as the producers are concerned, gentleman from Virginia? is the question of price. I believe he will pursue this ques­ ·There was no ·objection. tion and I believe that eventually, with the aid and assist­ INCREASE PURCHASING POWER OF PEOPLE ance of his committee, will bring in a bill that will make it Mr. PATM:AN. Mr. Chairman, I move to strike out the possible for people who are ambitious, energetic, and who last word. are willing to work and have initiative to earn a fair annual Mr. Chairman, I know that my good friend the gentle­ income which will make it possible for them· to buy what man from Massachusetts ·rMr. CoNW....RYJ is· sincere in offer­ these labor-saving devices produce. [Applause.] ing this amendment. I know he is sincerely for the cause of · Mr. GRISWOLD. Mr. Chairman, even if the amendment labor, and I am not taking issue with him on that score, of the gentleman from Massachusetts [Mr. CoNNERY] pre­ but I do wonder if he is approaching it from the right angle. vails I do not believe you are going to stop the purchase of It occurs to me there is a better way of approach than the these labor-saving devices, and I am not one who believes angle from which the gentleman seeks to approach it. like the chairman of the subcommittee of the Appropria­ Mr. Chairman, there are 40,000,000 people in this country tions Committee that they will not use labor-saving devices engaged in production. They work on the farmS, on the in the Railroad Labor Board. If there is any place in the 804 CONGRESSIONAL ;RECORD-HOUSE FEBRUARY 3 entire Government where they will use these labor-saving $163,000 for the collection and dissemination. of informa­ devices I believe it will be in that Board just as they use tioi;l; it asks for $70,000 for utilization, which is really a them in the A. A. A. I can see no reason why they could further educational work; in addition it asks for $70,000 for not use the same system as the A. A. A. with their card­ printing and binding. punching system and use it to better advantage than the My amendment would simply reduce the total of $163,000 A.A. A. by $50,000 as a start in the right direction. The sum of I believe if you strike out this language they will still $113,000 would seem to be more than sufficient for the col­ purchase these things, and yet I favor the striking out of the lection and dissemination of information. language. I favor the striking out of the words "labor­ Mr. RANKIN. Mr. Chairman, I regret very much to note saving devices" in the interest of consistency on the part of the attacks made by the gentleman from Massachusetts this House. We came out in one bill just a few weeks ago, [Mr. WIGGLESWORTH] on the RUl·al Electrification Admin­ and went on record in the last Congress and the Congress istration, one of the most valuable agencies of this Govern­ before that, in our appropriations bill, carrying out the pol­ ment, and one that has the · power, if properly used, to do icy that we must spend money, to put men to work, and yet more for the people in the rural sections than probably any in the same Congress we come with this inconsistency in other agency of its kind in America. this bill and say that now we must increase the man-hours It is. a little surprising to me to hear these attacks waged of production and decrease the man-units of consumption against the small amount provided in this bill to carry on by the use of the words "labor-saving devices." . the work of this great organization, in view of the fact that This is a march of progress, and we are going to use .these millions, if not hundreds of millions of dollars, wrung from labor-saving devices, whether this language is in the bill or not. · the helpless consumers of electric energy, have been spent every year by private power companies and holding com­ If you strike out these words the bill will read, "Office panies for .propaganda purposes in order to try to destroy appliances, supplies, and equipment." This covers the multi­ the power policies of this Administration and to prevent the tude of sins in labor-saving devices, and if you strike out American people from getting electricity at reasonable rates. the language referred to in the amendment the labor-saving Private power interests are overcharging the American devices will be purchased, but they will not be purchased people more than $1,000,000,000 a year for electric lights and with you on record as backing the theory that as a Congress power. And in order to continue these· overcharges, they we are willing to purchase things to throw men out of work are spending more money in 1 week for propaganda pur­ one day and the next day appropriate seven or eight billion poses than all the electric power agencies of this Government dollars to put men to work. combined spend in an entire year. They want to continue I think the amendment of the gentleman from Massa­ chusetts should prevail. [Applause.] to·rob and plunder the helpless consumers of electric energy throughout the cotmtry, and are using ·every means at their The CHAIRMAN. The question is on the amendment command to try to strangle, stamp· out, or destroy all com­ offered by the gentleman from Massachusetts. petition. The question was taken; and .on a division (demanded by Mr. CoNNERY) there were-ayes 27, noes 63. Mr. THOMAS of New Jersey. Mr. Chairman, will the gen­ Mr. CONNERY. Mr. Chairman, I demand tellers. tleman yield? - Tellers were refused. Mr. RANKIN. Yes; I yield for a question. So the amendment was rejected. Mr. THOMAS of New Jersey. The gentleman just made The Clerk read as follows: the statement that privately owned power and light com­ RURAL ELECTRIFICATION ADMINISTRATION panies were robbing the people in every area of the United Salaries and expenses: For administrative expenses and expenses States. of studies, investigations, publications, and reports necessary to Mr. RANKIN. Yes; in overchar~;res. carry out the provisions of the Rural Electrification Act -af 1936, approved May 20, 1936, including the salary of the Administrator Mr. THOMAS of New Jersey. Does the gentleman claitn and other personal services in the District of Columbia and else­ that in the State of New Jersey 4 cents a kilowatt-hour i.S where; traveling expenses, including expenses of attendance of o11l­ an overcharge? · _ cers and employees at meetings when determined by the Adminis­ trator to be necessary in furthering the work of the Administration; Mr. RANKIN. I shall put the overcharges for New Jersey contract stenographic reporting services; expert witneSs fees; ma­ in the RECORD at this point-- terials, supplies, equipment, and services; rentals, including build­ Mr. THOMAS of New Jersey. I am asking the gentleman ings and parts of buildings and garages, in the District of Columbia a particular question. - and elsewhere; purchase and exchange of books, law books, books of reference, directories, and periodicals; not to exceed $200 for Mr. RANKIN . . I decline to yield further, but will answer newspapers and press clippings; financial and credit reports; pur­ the question by showing what the people of New Jersey chase, rental, exchange, operation, maintenance, and repair of type­ are paying, and how they are being overcharged. writers, calculating machines, and other om.ce appliances; and all other expenses necessary to administer said act, $1,450,000: Pro­ Mr. THOMAS of New Je.rsey. But that is not an 2.nswer vided, That section 3709 of the Revised Statutes (U. S.C., title 41, to the question. sec. 5) shall not be construed to apply to any purchase or service rendered for the Rural Electrification Administration when the Mr. RANKIN. Mr. Chairman, I decline to yield further. aggregate amount involved does not exceed $100. If the gentleman from New Jersey is so poorly informed on this subject he does not know that the people in New Mr. WIGGLESWORTH. Mr. Chairm.a.n, I offer the that following amendment. · Jersey are overcharged $39,000,000 a year for electric light The Clerk read as follows: and power, he ought not to try to project himself into a dis­ cussion of this kind. He may not know it, but the people Page 33, line 1, after the word "act", strike out the figures "$1,450,000" and insert "$1,140,000: Provided, That not more than of New Jersey pay about the highest light and power rates of $113,000 shall be expended for the collection and dissemination of any State in the Union. informatlon:· In 1934 the people of New Jersey used 1,839,677,000 kilo­ Mr. WIGGLESWORTH. Mr. Chairman, this amendment watt-hours of electric energy, for which they paid $76,487,- is offered for the purpose of reducing to some extent the 173. Under the T. V. A. rates the cost would have been funds contemplated to be expended for publicity work by $37,364,173, a difference of $39,123,000. Under the Tacoma this particular agency. rates the cost would have been $36,924,173, a difference of I called attention this morning to the situation that seems $39,563,000. Under the Ontario ·rates the cost would have to be developing in many Federal agencies. I called atten­ been $29,724,156, a difference of $46,763,017. Which shows tion specifically to the fact that the funds asked for by the that the overcharges paid by the people of New Jersey aloni! Rural Electrification Administration, the Social Security amount to about $40,000,000 a year. Board, and the Federal Housing Administration for publicity This burden falls most heavily upon the domestic or resi­ purposes when added together amount to a total of almost dential consumers. The gentleman from New JerEey [Mr. $1,000,000. THoMAs] gives as his home address the town of Allendale, The Rural Electrification Administration is the first of and for his information I call attention to the electr:c light these three agencies to be reached· in the bill. It asks for and power ra~s p~d- bY: the dom_e~~~ ~onsumers of Allen- 1937 CONGRESSIONAL RECORD-liOU.SE 805 dale, which are about the average paid throughout the State indebtedness, sinking funds, repairs and other necessary ex­ of New Jersey. penses, and at the same time is gradually paying its system In ,Allendale, 15 kilowatt-hours a month of electric energy out. In a few years it will be entirely out of debt, and then costs a domestic consumer $1.35; 25 kilowatt-hours a month its rates will be reduced still further. costs $2.25, and 40 kilowatt-hours a month costs a domestic Now let's see about the T. V. A. rates. On yesterday, the consumer in that town $3.60, when it should cost not more contract between the Government and the Commonwealth than $1.20. The average domestic consumption throughout & Southern through which the latter was purchasing the State of New Jersey is only 40 kilowatt-hours a month, T. V. A. power generated at Muscle Shoals expired, and if and I am sure that tpe consumers in Allendale, especially I can prevent it, that contract will not be renewed. The with these high rates, do not use above the average con­ Commonwealth & Southern remains an outlaw corpora­ sumption. So, instead of paying 4 cents a kilowatt-hour, a tion and refuses to register under the Holding Company Act. domestic consumer in Allendale pays $3.60 for 40 kilowatt­ We do not treat with other outlaws, and I am not willing to hours, or 9 cents a kilowatt-hour. If that is not legalized make an exception of the Power Trust. Even if they should robbery, then I submit that ·I do not know how one would register under the Holding Company Act, I would oppose the go about robbing a householder in the State of New Jersey. T. V. A.'s selling them power until they dismiss their injunc­ In order to show what electric lights and power should tion suits against the T. V. A. and dismiss every other suit cost domestic consumers I insert at this point the rates they now have against any agency of this Government in cparged domestic consumers in the Tennessee Valley area. which they are attempting to prevent the Government from These are the T. V. A. yardstick rates. which the ultimate aiding municipalities and rural cooperative associations in consumers in that area are required to pay: buying or building their own distribution systems. First 50 kilowatt-hours per month, -3 cents per kilowatt­ And even then I would oppose selling them power unless hour. it were provided, and written into the contract, that they Next 150 kilowatt-hours per month, 2 cents per kilowatt­ were to deliver it to the ultimate consumers at the T. V. A. hour. yardstick rates. Even thEm I would oppose selling them Next 200 kilowatt-hours per month, 1 cent per kilowatt­ this power unless they paid the same rate for it that is hour. now being paid by the municipalities and cooperative asso­ Next 1,000 kilowatt-hours per month, 4 mills per kilowatt- ciations in the T. V. A. area. And, in addition, I would hour. have it written into the contract that the Commonwealth I shall show that these rates are not only not ·too low, but & Southern and its subsidiaries are to cease their per­ that they really are· too high, and should be reduced. I nicious practices of building spite lines through rural sec­ hope every Member of the House and everyone else who tions merely to cut the territory to pieces and prevent the reads this RECORD will get his canceled light and power bill development of rural electrification systems. for the last month and compare the rates he now pays with In other words, I would serve notice on the Commonwealth these T.V. A. yardstick rates. & Southern, and give reassurance to the people of this During the year 1936 the American people consumed 88,- Nation that the T. · V. A. is to be operated for the benefit 883,000,000 kilowatt-hour of electric energy, for which they of the people of this country, and not for the benefit of paid $2,059,136,000, according to the Edison Electric Institute the Power Trust. Bulletin for January 1937. If they had paid the Ontario As most of you know, my home is at Tupelo, Miss., the rates, or the rates charged by the Ontario Public Power first municipality to purchase power from the T. V. A. and Commission, the cost would have been $4.45,000,000 instead to apply the T. V. A. yardstick rates. I am going to give of $2,059,136,000. Therefore, according to the Ontario rates, you the results of the operation of our municipal power the American people were overcharged $1,614,136,000 for system during the last 12 months, under that contract. electric lights and power during the year 1936. Tupelo is purchasing power from the T. V. A. at wholesale If this power had been supplied to them at the Tacoma and then selling it to the ultimate consumers at the standard rates, the rates now in effect in Tacoma, Wash., where they T. V. A. yardstick rates. have.a public power system, the cost would have been $489,- Sometime ago, Mr. Wendell L. Wilkie, president of the 950,000, instead of $2,059,136,000, or a difference of $1,669,- Commonwealth & Southern, who has come to be known 186,000. Therefore, the American people were overcharged throughout my section of the country as "Windy" Wilkie, last year, according to the Tacoma rates, the enormous made the ridiculous assertion that- amount of $1,669,186,000. Whenever · a citizen of TUpelo, Miss., turns on the electric But the friends of the Power Trust will tell·you that the switch, everybody in the United States helps to pay his electric bill. Ontario Power Commission pays no taxes, that it is a public system and supplies power to the people of Ontario at cost. In the same statement he said: That is true. But let us add the taxes and see what dif­ Our operating companies in that area could lower their rates ference that would make. A thorough investigation in the at least 25 percent below the Tennessee Valley Authority rates if they were given the same gifts from the Federal Treasury as are State of Washington showed that taxes paid by power com­ given to the Tennessee Valley Authority. panies for all purposes amounted to about 1 mill per kilowatt-hour, or a little less. Therefore, the taxes on this Now, let us see about that. The report of the Chief of Army 88,883,000,000 kilowatt-hours consumed by the people of the Engineers on the Tennessee River and its tributaries, filed United States last year would amount to not more than on Match 24, 1930, and signed by Hon. Patrick J. Hurley, $88,883,000. Take that amount from the $1,614,136,000, the then Secretary of War, states that this power can be laid overcharges according to the Ontario rates, and it will still down at the switchboard at 1.352 mills per kilowatt-hour, show an overcharge of $1,525,253,000 after allowing for all which is about one-seventh of a cent. This was said to be taxes. the sales price necessary to obtain in order to pay 4 percent Remember that the tax question does not enter into the on the investment. Evidently that report was correct, for overcharges in the Tacoma comparison, for the reason that the Army engineers had no reason whatsoever for coloring the Tacoma power system pays taxes of about $150,000 a their report or misstating their findings. This report also year. Remember, too, that the Ontario system has about showing this power could be transmitted 100 miles and sold $400,000,000 invested, and that these charges take care of for 1.993 mills, or approximately 2 mills per kilowatt-hour. all expenses, including interest and sinking funds necessary That would be about one-sixth of a cent per kilowatt-hour. to liquidate their indebtedness within a reasonable time. Tupelo is about 100 miles from Muscle Shoals. Remember also that the Tacoma system has $23,000,000 On the basis of this report of the Army engineers, a con­ invested and has paid its indebtedness down to about $7,- tract was made by the administration then in power, for 000,000. Tacoma is a city of about 106,000 people, and yet the sale of Muscle Shoals power to the Commonwealth & with this tremendous investment, it has the lowest light and Southern and its subsidiaries. That contract was to last power rates in the United States, even lower than the T.V. A. for 5 years. It has just now expired. I called on the Ten.­ rates. It pays taxes, takes care of all the interest on its nessee Valley Authority to find out how much power the 806 CONGRESSIONAL RECORD-HOUSE FEBRUARY 3 Commonwealth & Southern purchased under that con­ At the time the T. -V. A. was created, the people of the tract last year, and what they paid for it, and I have a city of Tupelo were paying the standard Commonwealth & telegram from the Authority stating that the T.V. A. deliv­ Southern rates for electric energy. At that time the do­ ered to the Commonwealth & Southern during the year 1936, mestic consumers were using an average of 42 kilowatt­ under that old contract, 556,626,670 kilowatt-hours of elec­ hours a month, for which they were paying $3.96. Today tric energy, for which they paid the sum of $870,238. By they are using an average of 156 kilowatt-hours for which simple division you can see that this amounted to about they pay an average of $3.62. At that time the domestic 1.561 mills per kilowatt-hour, or a little less than one-sixth consumers were using 15 electric ranges and 158 electric of a cent per kilowatt-hour. refrigerators. Today they are using 296 electric ranges and During the same year the electric department of the city 989 electric refrigerators, which shows that the lower the of Tupelo purchased from the Tennessee Valley Authority, rates the greater the consumption and the more liberal the under its contract, 10,312,600 kilowatt-hours of electric en­ use of electrical appliances. ergy, for which it paid the sum of $50,280.22, or 4.875 mills I might call attention to the fact that in the city of New per kilowatt-hour, or a little more than three times the price York, where the rates are tremendously high, the average pajd by the Commonwealth & Southern. The city of Tupelo domestic consumption of electricity is only 39 kilowatt­ paid 4.875 mills per kilowatt-hour, while the Commonwealth hours a month, whereas in Tupelo, where the T. V. A. yard­ & Southern was buying it at 1.561 mills per kilowatt-hour. stick rates are in effect, the average domestic consumption Yet Mr. Wilkie says that every . time a consumer in Tupelo is 156 kilowatt-hours a month, or four times as much as it turns the electric-light switch the American people pay the is in New York City. bill. I wonder who was paying the Commonwealth & South­ Remember, too, that Tupelo is a town of less than 10,000. ern's bill? No wonder he wants this contract renewed. It has 1,400 domestic consumers of electric energy. They At the time the T.V. A was created, the Commonwealth use an average of 156 kilowatt-hours per month, which costs & Southern and its subsidiaries, the Alabama Power Co., the them $3.62. Under the Commonwealth & Southern rates, Mississippi Power Co., and others, were selling this electricity 156 kilowatt-hours a month would have cost them $13.08, for which they were paying 1.561 mills per kilowatt-hour t.o a difference of $9.46 a month, or $113.52 a year, or a total the domestic consumers in that area at the following rates: difference of $158,928 a year for these 1,400 dom~stic con­ First 30 kilowatt-hours per month, 10 cents per kilowatt­ sumers. hour. In other words, if the domestic consumers of Tupelo were Next 170 kilowatt-hours per month, 8 cents per kilowatt­ paying the same rates for electricity. they were paying 3 hour. years ago under the standard Commonwealth & Southern Next 300 kilowatt-hours per month, 7 cents per kilowatt­ rates the annual cost to the domestic consumers alone in hour. that city would be $158,928 more. Next 350 kilowatt-hours per month, 6 cents per kilowatt­ So you can see who was paying the bill when the Common .. hour. wealth & Southern threw the switch. Excess over- 850 kilowatt-hours per month, 5 cents per Remember that this wasT. V. A. power, or Muscle Shoals kilowatt-hour. power, which. they were selling at these exorbitant rates at Now let us make some comparisons in rates. The fol­ that time, and which they are now, or were until yesterday, lowing table will show the comparative cost to the domestic selling in nearby towns at rates practically as exorbitant. consumers under the old Commonwealth & Southern rates Last year the city of Tupelo bought 10,312,600 kilowatt­ and the T.V. A. rates up to 1,000 kilc;:>watt-hours per month: hours of electric energy from the T.V. A., for which it paid $50,280.22, and sold it to the ultimate consumers for $123,397. Former Tennessee power­ Valley The city's electric department paid into the city treasury for company Authority taxes the sum of· $9,546.64, paid interest on the city's invest­ rates rates ment of $4,390.03, set up a depreciation account of $8,089.47, paid interest on bonds of $1,906.09, and paid all maturing First 30 kilowatt-hours------$3.00 $0.90 bonds in the amount of $5,911.39, and then made a net -profit Next 170 kilowatt-hours·------13.60 3. 60 Next 300 kilowatt-hours______21.00 2. 40 of $15,000. Next 350 kilowatt-hours______21.00 1. 40 I have a letter from Hon. J.P. Nanney, mayor of Tupelo, Next 150 kilowatt-hours------:------, __7_. 50_ ____• 60_ 1 in which he says that anyone who ·cannot take a plant such 1,000 kilowatt-hours______66. 10 8. 90 as Tupelo's, purchase power at the T.V. A. wholesale rates, and retail it at the yardstick rates and make a profit "should In other words, a householder under the T. V. A. rates not be allowed to hold public office." pays $8.90 for 1,000 kilowatt-hours a month, which formerly · Yet this same Commonwealth & Southern that has been cost him $66.10 under the power-company rates in effect in buying its power at Muscle Shoals for less than one-third the Muscle Shoals area at the time the T.V. A. was created. the rate paid by the city of Tupelo, has been telling the Ah, now we can see who pays the bill when the Common­ world through Mr.- "Windy" Wilkie, that Tupelo was buy­ wealth & . Southern throws the switch. This 1,000 kilo­ ing electricity below the cost of production. The power watt-hours for which the Commonwealth & Southern, or companies have used every means known to man to get con.;. one of its subsidiaries, charge the domestic consumer $66.10. trol of the distribution systems of the cities, towns, and costs them the sum of $1.56. municipalities in that area, and are today using the Fed­ Since I have referred to the Ontario rates and the Tacoma, eral courts to hold the people in those towns and municipal­ Wash., rates, I am here inserting the residential rates up ities in economic subjugation, while they rob and plunder to 1,000 kilowatt-hours a month and comparing them with them through exorbitant light and power rates. the T. V. A. rates now in effect, and with the Commonwealth The city of Aberdeen, Miss., formerly owned its own elec­ & Southern rates in effect in that area at the time the tric plant and distribution system. When the Muscle Shoals T. V. A. was created. development got under way these private power interests Table of comparative monthly rates went throughout that section buying up municipal plants, without regard to their actual values. The· people of Aber­ Monthly consumption, kilowatt-hours deen voted against selling their plant, but these private power companies brought so much pressure to bear that 25 40 60 100 300 500 1,000 they finally induced the board of aldermen to sell it to them, ------over the· protest of the mayor, for $102,000. At the same Ontario rates ______$0.75 $1.02 $1.54 $1.74 $3.02 $3. 92 $6. 17 time they bought the plant in Corinth, Miss., a town slightly Tacoma rates._------1. 13 1. 52 1.72 2.12 4.12 6.12 8.62 Tennessee Valley Au- larger than Aberdeen, and paid $750,000 for it, and at­ thority rates ______• 75 1.20 1. 70 2.50 5.50 6.90 8. 90 ·tempted to buy the plant at West Point, a town similar in Old Commonwealth & Southern rates ______2.50 3.80 5.40 8.60 23.00 37.60 66.10 size to Aberdeen, and only 18 miles away, for which they ,:offered $1,250,000. 1937 .CONGRESSIONAL RECORD-HOUSE 807

I warned my people then that they were not merely selling The CHAIRMAN. The Chair did not hear anY objection~ their plants but were selling themselves into the bondage of Mr. THOMAS of New Jersey. I stood on my feet and the Power Trust; that they were selling the birthright of objected. their children. We prevented them from getting the Tupelo Mr. RANKIN. Mr. Chairman. that is incorrect. I was plant. looking at the gentleman. The people of Aberdeen have attempted to put in their The CHAIRMAN. The Chair did not hear the gentle­ · own distribution system or to purchase back the old one. man's objection, and the Chair thinks the objection comes They took a vote on the proposition and it carried by more too late. The Chair recognizes the gentleman from Arkan­ than 10 to 1, but the private power company not only re­ sas for 2 minutes. fused to sell but went into the Federal court and enjoined Mr. TERRY. Mr. Chairman, I do not want to get into the the city from building a system of its own. The case is now controversy raised by the two gentlemen who have just before the circuit court of appeals. Thus they have held addressed the Chair, but I desire to address myself for a the people of Aberdeen in subjugation now for about 2 or 3 moment to the merits of this amendment. years and have robbed them through overcharges of around I hope the gentleman's amendment will not be adopted. $100,000 a year, denied to them a liberal use of electric energy, I feel that the work which the•Rural Electrification Admin­ and prevented them from the employment of the necessary istration is doing is one of the best works the Government electrical appliances. is now engaged in. It is a new administration. It is one They have done the same thing at Starkville and in other that peculiarly deals with rural people, people out in the towns and cities throughout that area, using the Federal back districts, who do not have facilities for knowing what courts to further their iniquitous scheme of plundering the this electrification program means. It seems to me it is only consumers of electric lights and power, and now they have meet and proper that the Rural Electrification Administra­ the audacity to attempt to renew their contract for the pur­ tion should have the right to have publicity on its program. chase of this power at the price which I have stated, and In the rural districts the people do not know what it means. are attempting to further use the Federal courts to strangle They do ·not know that rural electrification will bring more or prevent competition. · happiness to those people than any other program the Mr. Chairman, when I was interrupted, I had started in to Government is now undertaking. discuss rural electrification, which I hope to do at length at a I ask that the amendment be voted down. [Applause.] later date. It is the ambition of my life to see every farm The CHAIRMAN. The time of the gentleman from home in America electrified at the T.V. A. yardstick rates, Arkansas [Mr. TERRY] has expired. to see this Nation develop its great wealth of hydroelectric All time has expired. power in our navigable streams and their tributaries, and The question is on the amendment offered by the gentle- then use it for the benefit of all. In that way we can supply man from Massachusetts £Mr. WIGGLESWORTH]. every domestic consumer in America and electrify every farm The amendment was rejected. at the T.V. A. rates, reduce those rates as the years go by, The Clerk read as follows: and at the same time secure enough revenue in return to Printing and binding: For printing and binding for the Rural amortize our investments. Electr1.tl.cation Administration, $70,000. This would do more for the farmers of this country than Mr. DffiKSEN. Mr. Chairman, I move to strike out the anything else that has ever been done or attempted by this last word. Government. It would take to the farmer every convenience Mr. Chairman, I think in all fairness to the gentleman that we have in the towns and cities, without the additional from Massachusetts [Mr. WIGGLESWORTH], I ought to say noise and extra taxes. It would light his home, run his radio, something by way of rebuttal to the statement that was his water pump, refrigerator, washing machine, electric made by the·gentleman from Mississippi [Mr. RANKIN]. range, and all the other appliances necessary to make that I fully appreciate the zeal of the distinguished advocate home pleasant and attractive, and to relieve him and his from Mississippi, but in justice to my colleague from Massa­ wife and children of the great burdens of drudgery which chusetts, I must say that he never had in mind at any time farmers and farm women have endured since the beginning a desire to hamstring the Rural Electrification Administra­ of time. tion. When that bill was on the floor in the last session of This is being done in the district which I have the honor the Congress I voted for it, and I am not sure but what the to represent, and I know what it means. We have not been gentleman from Massachusetts voted for it also. We are as able to reach all of them yet, but we are still striving tq that much interested in the rural electrification as anybody. We end. We are on our way. have no idea in mind of trying to curtail or cripple its It is the greatest farm relief movement this country bas activities, but the Rural Electrification Administration, for ever known and, if fully carried out, instead of burdening instance, gets out a lot of pamphlets. Some of them are this Government with expenses, it. will add billions of dollars called Wiring Your Farm and Home; Electrifying Farm and to our national wealth and make the rural sections of this Home; Wiring; Lighting; Home and Farm Appliances. In Nation the most attractive place on earth for men and addition to this, they get a monthly called Rural Electrifica­ women to live, rear their families, and enjoy that freedom tion News. They get out a lot of blue prints and specifica­ which civilized man has always craved. tions that are sent around the country; and they get out a I certainly hope this House will not disturb the small little booklet in connection. with soil conservation called amount which this bill carries for rural electrification. Little Waters. £Applause.] I have no objection to these. I think they are fair and Mr. TERRY rose. informative, and, incidentally, interesting documents that The CHAIRMAN. The Chair recognizes the gentleman ought to go out to the country; but, in addition thereto, you from Arkansas. will find we are making an allowance here aggregating Mr. THOMAS of New Jersey. Mr. Chairman, a point of nearly $180,000, if I read the figures correctly, for "Collection order. and dissemination"; not for the purpose of getting out these The CHAIRMAN . . The gentleman will state his point of pamphlets particularly, but for the purpose of maintaining order. personnel down there to write and have mimeographed a lot Mr. THOMAS of New Jersey. The gentleman from Mis-. of information to go out to the country newspapers and to sissippi asked unanimous consent to extend his remarks. I the city newspapers to carry on sales-promotion work. rose, and I wish to object. I am going to put you on notice with this statement-that Mr. RANKIN. Mr. Chairman, the gentleman did not get if you think that sort of thing ought to go on, then every up until after the question was put and passed on. . new agency that we set up ought to have provision for a sales The CHAIRMAN. Does the gentleman state that he was manager to sell' this function to the people of this country. on his feet before the decision was rendered by the Chair? With your eyes open, if you think that is a fair domain for the Mr. THOMAS of New Jersey. The gentleman asked :tor Government to enter, very well. I have no objection, but I unanimous consent. · do believe that a. V&¥ cleax: distinction should be made as 808 CO_NGRESSIONAL ;RECORD-HOUS;m I ;FEBRUARY 3_ between things which we endorse.and .things which we oppose. not to exceed.$40,0.00 of the sum herein .appropriated for. employ­ ing persons or organizations, by contract or otherwise for special Sooner or later we are going to reap a great crop of evil as a accounting, actuarial, statistical, and reporting, ' eng~eering, and result of bureaucratic set-upg that have no other-purpose organizational services determined necessary' by ·the Board wtth~ than to send out promotional literature and propaganda and out regard to section 3709 of the. Revised Statutes. (U. S. O., .title that sort of thing. I do not know where the end is going to 41, sec. 5), and the provisions of other laws applicable to the employment and compensation of officers and employees of the be, but I am going to suggest·to you that if you will look-at United States. I - • - _ _ _ the Public Printer's animal report you will find that for the last fiscal year the publication charges charged to the Re­ . Mrs. JENCKES of . Mr. Chairman, I move t~ · settlement Administration by the Public Printer aggregated ~trike out the last word. over· $808,000. Where is the end going to be? It is your - ~r. ·chairman, I ,am appealing to-the House of Repres~n~­ responsibility. ·· If·you are going to cooperate to make some ~a~Iy~s ~~q. ~~e_. Cent so many gentleman single out the Rural Electrification Administration ~~ll:ions of do~ars to .create jobs t~at oi.Ir Am~rican taxpay~ and let all the rest go by? ers are groanmg under the heavy financial burden that has been . plac-ed up6n them. and which they are cheerfully Mr. DIRKSEN. If the gentleman had been on -the floor carrymg in order that their fellow citizens might have an when we had the feed and seed loan bill under . considera­ opportunity to work. · · tion, he will recall that I made the same point at that time, that .we are just -throwing money -to the birds for- a-lot -of ~~ . attention of the House of Representatives IS invited propaganda work, much of which could -be saved. ~o pa~e _ 3~ · ~f : tp~ ', printed- bi~. ' H. · R.~ ·-4064-. I ·inVite your' ~tten_t10n to liries 15 and l6 on page 37. · You will note that I appreciate the gentleman's point of view,- but I do say notWithstanding fact Uiat-millions·of Americans are out· there is no use piling up tons and tons and tons of printed the matter. to be scattered all over thP. country. - of 'York, _i_t is proposed that thiS House of ·Representatives shoil.U:l appropnate · niohey in order "that "labor-saving de- Shall I remind-you that the CoNGRESSIONAL RECORD -for-the . vices". might_ be purchased by the Goveriiment; therebY. last session took over 894 tons of paper? ~owmg out of work many more ·and women who will Mr. TABER. Mr. Chairman. -will the gentleman yield? men ~- ~orc~_ATRICK.. That figure of $19 per person per month in­ cludes both the State and Federal contribution? been in .hearty sympathy with its objectives from the outset. Mr. BANE. Yes; that is the gross expenditure. One of the most vital matters confronting us at this time is the proper solution of the problems by which the Board Mr. Chairman, may I say that under the present social­ is faced. security plan that has been· provided by this Congress a Moreover, while every cent requested bas been allowed for very limited number of people eligible to receive pensions annuity payments a substantial reduction has been recom­ will receive them at an. When they do they will receive on mended in the costs of administration as compared with the average in the United States 63¥3 cents per day. I do the Budget figures. It may be that the reduction has been not know what the plan of the security boards of the other too great. You have heard the fine attitude of the Board States is, but I know in North Dakota, under the security presented by the chairman of the subcommittee this morn­ board appointed by the preceding Governor, the aged of our ing. If it proves that the cut is too deep, the way is of State, although they have been able in the past years to course always open for an increase through a deficiency save a moderate home, some of them even a shanty, are item. compelled by the Social Security Board to transfer title to Just to keep the record straight, however, and to empha­ the Board before they may receive any money at all. I want size the point I have been trying to make today, I repeat this Congress to understand from the evidence in this rec­ what I said this morning, to the effect that the record ord on those pages from which I have quoted that before indicates that the Board expects to maintain a force of 97 any of the aged in America can qualify to receive this pit­ persons for informational service at a cost of over $233,000 tance of 63 ¥.1 cents a day they must make themselves annually; further, that the record shows that during a paupers or hand their property over to the Social Security period of 6 months this informational service produced 160 Board. press releases, 450 magazine articles, 180 speeches, 3 moving Mr. WOOD. That is governed by the gentleman's State pictures, and 60 hours of broadcasting. law. The position of the subcommittee on this general subject Mr. WOODRUM. That is controlled by your State law. is clear. It is referred to in the committee report. I feel sure Mr. WOOD. The State law requires the recipients to that the Social Security Board will do its utmost to bring its turn their property over. That is not the Federal Socfal expenditure for informational service within the bounds of Security Board. reason. Mr. BURDICK. I say that under the provisions of this Mr. MICHENER. Mr. Chairman, will the gentleman yield? act we have made it possible for the State to determine Mr. WIGGLESWORTH. I yield. who is entitled to and under what rules and regulations they Mr. MICHENER. The gentleman has recited the broad­ shall receive the money. Of course, I prefaced my remarks casting, the magazine articles, and the speeches that have by saying I did not know what the situation was in the·other gone out from this agency for which the Government has States except North Dakota. paid during the last year. Now that the election is over, doe~ [Here the gavel fell.] the gentleman contemplate that there will be as many maga­ Mr. BURDICK. Mr. Chairman, I ask unanimous consent zine articles, broadcasts, and press releases during the coming to proceed for an additional three minutes. year in order to sell this thing to the public? The CHAIRMAN. Is there objection to the request of the Mr. WIGGLESWORTH. I certainly hope not. gentleman from North Dakota? By unanimous consent, the pro-forma amendment was There was no objection. withdrawn. Mr. ENGEL. Will the gentleman yield? The Clerk read as follows: Mr. BURDICK. I yield to the gentleman from Michigan. For printing and binding for the Social Security Board, $1,000,000. Mr. ENGEL. I introduced a bill last year to disqualify Grants to States for old-age assistance: For grants to States for assistance to aged needy individuals, as authorized in title I of the any State from receiving Federal aid if the State required Social Security Act, approved August 14, 1935, $150,000,000, of which the deeding of the home as a condition of payment of an sum such amounts as may be necessary shall be available for old-a.ge pension. There is nothing in the social security grants under such title I for any period in the fiscal year 1937 law requiring the deeding of the home. The Federal law subsequent to March 31, 1937: Provided, That payments to States for the fourth quarter of the fiscal year 1937 and for any quarter says if the States do require the deeding of the home, they in the fiscal year 1938 under such title I may be made With respect shall pay to the Federal Government 50 percent of the sum to any State plan approved under such title I by the Social realized from the sale of such home. Security Board prior to or during such period, but no such payment shall be made with respect to any plan for any period prior to the Mr. BURDICK. I thank the gentleman for his contribu­ quarter in which such plan was submitted to the Board for tion. When this act was perfected in this Congress, we approval. made it possible for the States to determine absolutely and Mr. BURDICK. Mr. Chairman, I move to strike out the under what conditions a person might become eligible . . We last word. should have exercised some jurisdiction. You have heard it Mr. Chairman, what I am about to say upon this subject said in the last Congress, and even now, that this plan is not in criticism of the committee, because I think they known as the Townsend recovery plan is fantastic; but I have appropriated probably enough to carry out the pur­ want to say to you that can be defended. You cannot de­ poses of the act; but it seems to me that now is the time to fend a plan which makes paupers out of the aged of this Ieview the evidence that has been bl"ought to the attention country, as the Federal Security Act does. of Congress by the bill itself and by the printed hearings. Mr. CRAWFORD. Will the gentleman yield.? l..et me read you a few important facts from pages 499 and Mr. BURDICK. I yield to the gentleman from Michigan. 500 of the hearings. We read that the Census advises us Mr. CRAWFORD. Is it not true also that the Social that on January 8, 1938, the estimated total number of per­ Security Board, which is a Federal set-up, has the power sons 65 years of age or over in the United States will be to decline approval of these State acts which have been 7,888,000. referred to by the two gentlemen on the other side? The percentage of persons held eligible in the various States­ Mr. BURDICK. I think the hearings disclose the fact that is, persons over 65 years of ag~ranges from about 2 percent that while the Federal Government bas jurisdiction over to more than 35 percent. Many States have large waiting lists of the States to see that they properly administer the act, the eligible applicants who have not as yet received assistance. At the present rate of increase in the number of recipients it seems Federal Government has no control over who is eligible in a entirely possible that 20 percent of the aged population will be State. receiving assistance by July 1938. Thus, to base the request upon the assumption that 15.7 percent will receive assistance seems . Mr. CRAWFORD. Is it not true that the Social Security conservat ive; just as we told you last year we thought $85,000,000 .:Soard must approve these state a.Cts before they can func­ was a very conservative figure. tion and receive the grants and aids? · 810 CONGRESSIONAL RECORD-- HOUSE _FEBRUARY 3 Mr. BURDICK. That Is true; but after the States start Mr. CRAWFORO. ·rn the middle of page 572 there is an­ to operate it is wholly within the power of the state to ether table, which shows the average retail price .of sugar in· eliminate everybody, as some of them have excluded worthy 51 large cities, as reported by the Bureau of Labor Statistics. applicants. Do these prices, as set forth in columns headed 1933, 1934, Mr. CRAWFORD. May I ask this question, in all sincerity 1935, and 1936 show the processing tax which was included and without desiring to cast any reflection whatsoever: in the retail price of sugar under those dates? Has the gentleman had this matter up with his State legis­ Mr. WOODRUM. I · cannot answer the gentleman's lature to correct the situation? question. Mr. BURDICK. That is a long story. We had to change The pro-forma amendment was withdrawn. the whole administration out there in order to get any­ The Clerk read as follows: thing done at all, but we did discuss that. VETERANS' ADMINISTRATION Mr. ENGEL. Does not the Social Security Act specify AdminJstration, medical, hospital, and ·domiciliary services:- For that if a State does require the deeding of the property it all salaries and expenses of the Veterans' Adm1n1stration, including the expenses of maintenance and operation of medical, hospital, must pay 50 percent of the amount realized from the _sale and domiciliary services of the Veterans' Administration, in carry­ of such home to the Federal Government, and does not ing out the duties, powers, and functions devolving upon it pur­ that fact constitute implied permission to the States to suant to the authority contained in the act entitled "An act to require the deeding of the home as a condition of the pay­ authorize the President to consolidate and coordinate governmental ~ctivities affecting. war veterans", approved July 3, 1930 (U. s. c., ment of a pension? title 38, sees. 11-llf), and any and all laws for which the Veterans' Mr. . BURDICK. The gentleman is right. There is noth­ Administration is now or may hereafter be charged with admin­ ing in the Federal act to indicate that the- States may istering, $94,000,000: Provided, Tha~ not to exceed $3,500 of this amount shall be available for expenses, except membership fees, perform a high-handed case of robbery as they are doing, of employees, detailed by the Administrator of Veterans' Affairs to but the Federal-Government tacitly condones the act. attend meetings of associations for the promotion of medical Mr. MICHENER. Will the gentleman yield? science and annual national conventions of organized war veterans: Provided further, That this appropriation shall be available also Mr. BURDICK. I yield to the gentleman from Michigan: for personal services and rentals in the District of Columbia and Mr. MICHENER. As a matter of fact, the gentleman elsewhere, including traveling expenses; examination of estimates always believes in his home constituents. He has told us of appropriations in the field, including actual expenses of sub­ that time and time again. Here is a ·case where quite evi­ sistence or per-diem allowance in lieu thereof; for expenses in­ curred in packing, crating, drayage, and transportation of household dently his constituency is not in accord with the gentleman effects and other property, not exceeding in any one case 5,000 from North Dakota, because it -is ·entirely up to the people pounds, of employees when transferred from one official station to of his own district and his own State to do the very thing .another for ,permanent duty .and when specifically authorized by the Administrator; furnishing and laundering of such wearing he is objectilig to~ apparel as may be prescri~ed for employees in the performance of Mr. BURDICK. No; the-gentleman is misinformed about their official duties; purchase and exchange of law books, books· of North Dakota. · - reference, periodicals, and newspapers; for passenger-carrying and .other motor vehicles, including purchase, mai_ntenance, repair, and Mr. MiCHENER. No; the· gentleman is not riiisinformed. operation of same, including not more than two passenger automo­ · Mr. BURDICK. We had to change the whole administra­ biles for general administrative lise of the central office in the Dis­ tion out there and throw the ·previous one out and put a trict· of Columbia; and notwithstanding any provisions of law to new one in in order to get anything. We will change our .the contrary,. the. Administrator. is authorized to utilize Govern­ .ment-owned automotive equipment in transporting children of State social-security regulations if we can get rid of the Veterans' Administration employees located at isolated stations to present board. What I am speaking of in North Dakota and from school under such limitations as he may by regulation is true in several States of the Union . . In your own State prescribe; and notwithstanding any provisions of law to the con­ there are glaring examples .of injustice to the aged under trary, the Administrator is autho_rized _to_ expend not to ~xceed $2,000 of this appropriation for actuarial services pertaining to the your State security board with the apparent approval of the 'Government life-insurance fund, to be ·obtailied by contract, with­ Federal Board. out obtaining competition, at such rates of compensation as he m:1y Mr; MICHENER. Yes; but every State in the · Union determine to be reasonable; for allotment and transfer to the Public Health Service,.the War Navy, and Interior Departments, for dis­ has the right to formulate its own plan. bursement by tnem under the various headings of their applicable Mr. BURDICK. That is true, but the whole Federal appropriations, of such amounts as are necessary for the care and ~cheme of old-age insurance is based upon a system of doles treatment of beneficiaries of the Veterans' Administration, includ­ ing minor repairs and improvements of existing facilities under -to paupers. It provides no adequate, just, and honorable their jurisdiction necessary to . such care and treatment; for ex­ compensation for the aged of the United States. penses incidental to the maintenance and operation of farms; for [Here the gavel fell.] recreational articles and facilities at institutions maintained by the Veterans' Administration; for administrative expenses incidental to Mr. DIRKSEN. Mr. Chairman, I rise in opposition to the securing employment for war veterans; for funeral, burial, and pro-forma amendment. other expenses incidental thereto for beneficiaries of the Veterans' Mr. Chairman, may I call the gentleman's attention to Administration accruing during the year for which this appropria­ the testimony on page' 942 of the hearings. This question tion is made or prior fiscal years: Provided further, That the appro­ priations herein made for the care and maintenance of veterans in _was very ·specifically raised when Mr. Bane appeared before hospitals or homes under the jurisdiction of the Veterans' Adminis­ the Appropriations Committee. I asked him about that, be­ tration shall be available for t:pe purchase ·of tobacco to be fur­ cause a similar law is on the statute books of the State of nished, subject to such regulations as the Administrator of Vet­ erans' Affairs shall prescribe, to veterans receiving hospital treat­ lllinois, and for the REcoRD I want to quote his exact lan- ment or domiciliary care in Veterans' Administration hospitals or ·guage.- He said at that·time: · homes: Provided further, That this appropriation shall be available · Where the Board has been consulted in the matter, we have ,for continuing aid to State or Territorial homes for the support of consi.3tently recommended that the inclusion of such· a provision disabled volunteer soldiers and sailors, in conformity with the act is not practicable oz: advisable. approved August 27, 1888, (U.S. C., title 24, sec. 134), as amended, .for those veterans eligible for admission to Veterans• Administration The Clerk read as follows: facilities for domiciliary care. · Total, Tarur Commission, $945,000. Mr. JOHNSON of Minnesota. Mr. Chairman. I offer an Mr. CRAWFORD. Mr. Chairman, I move to strike out amendment. · the last word. Tile Clerk read as follows: Mr. Chairman, I offer this pro-forma amendment in order Amendment offered by Mr. JOHNSON of Minnesota: Page 43, line to ask the chairman of the subcommittee a question with 5, strike out "$94,000,000" and insert in lieu thereof "$96,000,000.'' reference to some tables appearing at page 572 of the hear­ Mr. JOHNSON of Minnesota. Mr. Chairman, I would like ings. At the top of the page there is a reference to the to have the attention of the chairman of the subcommittee, average wholesale price of sugar f. o. b. New York. May I the gentleman from Virginia [Mr. WooDRUM], in order that ask the gentleman whether or not that is the duty-paid I may call his attention and the attention of this Congress to price or the price not including the duty, as appears in the a matter in connection with this_bill, not knowing whether columns headed 1933, 1934, 1935, and 1936? my purpose can be accomplished here or in another measure. Mr.- WOODRUM. - The only information I have is con­ At the veterans' facility in Yilllneapolir. we have 185 tained in the table, I will say to the gentleman. orderlies, mechanics, and cooks who work 1n the hospital 1937 CONGRESSIONAL RECOR~HOUSE 811 and its diet kitchen and in the ·hospital laundry. They are · had the funds. If this is the case . they ought not to give paid $70, $80, or $90 a month, from which is deducted each such an excuse. month from $22.50 to $32.50, which is called a Q. S. L. deduc­ Mr. WOODRUM. The gentleman will find in the bear­ tion for quarters, subsistence, and laundry, regardless of the ings last year that General Hines stated they would try to fact that the employee does not receive any of the services work it out, but it fs a difficult prcblem. under the Q. S. L. for which he is charged. Mrs. ROGERS of Massachusetts. Mr. Chairman, will the The fact of the matter is that these people are married gentleman yield? men, most of them, and most of them are war veterans. They Mr. WOODRUM. I yield to the gentlewoman from Mas­ maintain a separate establishment for their own domicile, sachusetts. where they live with their families, and do not live at the Mrs. ROGERS of Massachusetts. Has the matter of the hospital. This deduction of $32 a month by the Veterans' shortage of nurses and orderlies and doctors been taken up Administration is quite a hardship on these men and makes and has the overtime they have had to perform during the for starvation wages. ! .have taken the matter up with the last few years been considered by the gentleman's com­ Veterans' Administration and they say they have not enough mittee? There is a great deal of overtime work by the money in their budget set-up to pay a living wage. There­ . nurses and doctors and orderlies, and their service is being sult is that at the veterans' facility at Minneapolis they are made very difficult as a result. . working 64 hours a week one week and 54 hours a week the Mr. WOODRUM. We know that in all of these bospi­ next week, in staggered shifts, for the sum of $52 to $65 a .tals; and, in fact, in all the Government institutions, over­ month, which is not enough to keep a family on an honor­ time work is being done, I may say to the distinguished able, decent American scale of living. gentlewoman from Massachusetts. If we eventually estab­ This is an abuse that should be conected by this adminis­ lish a policy of strict hours, then. instead of 800,000 em­ tration and is one of the idiosyncracies in the recovery pro­ ployees in the Government service the number will be that gram, and for this reason I have offered the amendment to many again. This is a question of Government policy. increase the appropriation in order to put the issue before Mrs. ROGERS of Massachusetts. I think the gentleman the House so that the situation may be corrected in this will find that overtime is much greater among the nurses Congress by the appropriate committee if not here today. and the orderlies and the doctors than in any other group Mr. WOODRUM. Mr. Chairman, the question raised by in the Veterans' Administration. the gentleman from Minnesota was considered by the com­ Mr. WOODRUM. The nurses in private hospitals work mittee in the bearings of la,st year and the situation is this: 12 hours a day. It is necessary, especially at the neuropsychiatric institu­ Mrs. ROGERS of Massachusetts. It seems very unfair to tions, and to some extent at all the institutions, that the type the medical and nursing service, and the patients do not of personnel to which the gentleman has referred live on the receive the care that they would otherwise. station. Certainly, at the mental institutions, a large pro­ Mr. WOODRUM:. I believe the nurses have the same portion of the orderlies and attendants have to live on the hours in private hospitals. station because they are liable to be called on duty at any I hope the amendment will not be adopted, because the minute. When they accept employment they understand inclusion of additional funds would not affect the matter thoroughly that living quarters are provided for them at the one way or the other, although I am sympathetic with the station and that this deduction is to be made from their pay. situation as stated by the gentleman from Minnesota. The situation to which the gentleman bas referred bas The amendment was rejected. now arisen and there are undoubtedly many cases where men Mr. LUCAS. Mr. Chairman, I move to strike out the last do not live on the station because they wish to live with their word. I ask unanimous consent to revise and extend my families, and yet the deduction is made. remarks. The matter was called to the attention of the Administra­ The CHAffiMAN. Without objection, it is so ordered. tor of Veterans' Affairs and in the appropriation bill of last There was no objection. year we provided a fund, and there are sufficient funds in Mr. LUCAS. Mr. Chairman, 2 years ago when the inde­ this bill. The Administrator told the committee last year the pendent offices appropriation bill was being considered in matter would be taken up from an administrative standpoint, the Committee of the Whole, I offered an amendment to and wherever it was possible to grant the privilege to these this section of the bill to the end that $500,000 of the pro­ people of living off the station without making any deduc­ posed appropriation for the Veteran:;;' Administration might tion that would be done. We were informed by him tbis year be used for payments to State institutions caring for and that some progress had been made. It is a difficult matter to maintaining veterans suffering from neuropsychiatric ail­ handle for the reason that a person applies to the Veterans' ments who were in such institutions on the date of the en­ Administration for a position as attendant and is informed actment of the act. of the circumstances and is told that he has to live on the A point of order raised by the gentleman from Virginia station at a salary of so much a month with a certain deduc­ [Mr. WooDRUM] was properly sustained for the reason that tion. He accepts the job and pretty soon he asks permission said amendment sought to amend basic law. However, in to live off the station. He is given permission to live off the the course of the remarks made upon that occasion the station, and the next step is wanting repayment of the gentleman from Virginia stated that be had conferred with amount that is deducted from his pay. General Hines and that the general was thoroughly sympa­ Mr. BOn.EAU. Mr. Chairman, will the gentleman yield? thetic with the situation attempted to be reached by the Mr. WOODRUM. I yield. amendment in question and that be would in no way inter­ Mr. BOILEAU. The gentleman from Minnesota stated fere with the policy pursued for years which involved the that be was told by the Veterans' Admin.!stration that the general welfare of these veterans located in the hospitals reason they could not do this was because the money bad not at Elgin and Jacksonville, Ill. been provided. Is the responsibility upon their shoulders or Later the same facts were presented to the Senate. It is upon the shoulders of the Congress in not appropriating my understanding that the parliamentary procedure in the sufficient money? Senate is not so rigid as it is in the House. The merits of Mr. WOODRUM. The adding of any money to the appro­ the proposal were not questioned, so it was passed and later priation would not affect the situation one way or the other, agreed to by the conferees of the House and the Senate. I can assure the gentleman. We have had the matter up Two years have come and gone, and these neuropsychi­ with General Hines and no additional funds are necessary. atric veterans remain in these respective hospitals. As a It is strictly a matter of administrative policy. If they want means of permanent protection to them and to the State of to do this they have the money to do it, I am sure. illinois responsible for the hospitals, I seriously doubt the Mr. BOILEAU. It seems strange that the gentleman from advisability of the deletion of this amendment. However, Minnesota would be informed they have not the money and it would be an idle gesture for me to present a similar . that they would be willing to correct the situation if they amendment at this time, as it would be subject· to the same 812 CO~GRESSIONAL RECORD-.HOUSE FEBRUARY 3 point of order made 2 years ago while the matter was under was ever in a single ownership before. • • • We estimate that consideration. the properties acquired will stand on the books of the Corpora 4 But, mindful of this strict parliamentary procedure, I tion at more than $600,000,000. ccmmunicated with the gentleman from Virginia to ascer­ This means that 160,000 homes and 20 percent, as far tain the viewPoint .of General Hines, Director of the Vet­ as the amount of money is concerned, of the $3,000,000,00Q erans' Administration, with respect to the Government again loaned, will have been foreclosed by the end of the fl..sc~l making a contract with the State of illinois for the purpose year ending June 30, 1938. The 17,000 ho~es or mortgages of keeping these neuropsychiatric veterans as wards of the that the gentleman. from Mississippi [Mr. CoLLINs] referred State institutions on a per-diem basis rather than transfer­ to were those properties which the Home Owners' Loan ring them to Government hospitals. That letter. was in CorPOration now have possession of, but nearly 161,000 fore­ turn transmitted to the Veterans' Administration for an­ closures will hav~ been commenced before June 30, 1938 . . swer, and on January 21 my colleague, Mr. WooDRUM, re­ Mrs. ROGERS of Massachusetts. Mr. Chairman, I move ceived a reply thereto, advising him, in substance, that the to strike out the last two words, to ask the chairman of the situation regarding this matter had not changed, and that, committee .what recommendation General Hines made re­ after all, there was no real necessity for the inclusion of the garding bospitals. amendment in the independent offices appropriation act, Mr. WOODRUM . . In what respect? since the wording of an applicable veterans' regulation now Mrs. ROGERS of Massachusetts. In additions to hospi­ in effect conveys any needed authority in the· premises. It tals and in repairs. was further stated that the Veterans' Administration was Mr. WOODRUM. The committee was given information paying the Department of Public Welfare of the State of that they expect to bring in about 3,200 additional beds by Illinois for the ca1·e and maintenance of about 227 veterans the end of the fiscal year 1938. now hospitalized in the hospitals at Elgin and Jacksonville, Mrs. ROGERS of Massachusetts. With the money al­ and that this payment would continue until there was an ready appropriated? increase of available beds in facilities -under the direct and Mr. WOODRUM. Yes. It will take care of the present exclusive jurisdiction of the Veterans' Administration and list and the waiting list. Some mention was made yester­ it became possible to transfer these beneficiaries into the day that there were 28 neuropsychiatric beds that are under Government facilities. And Mr. WooDRUM was specifically construction. That is not new construction, but remodeling. advised that such a possibility was indefinitely in the future. Mrs. ROGERS of Massachusetts. I ·think in certain areas I sincerely hope the time will never come when the Gov­ the gentleman will find there is great need for diagnostic ernment will attempt to enforce such regulation. At the centers, and there is a shortage of general medical and risk of being charged with repetition, once again I remind surgical beds even for service-connected cases also in cer­ the Members of the House that these hospitals at Elgin and tain areas. Could some of that money be used for that Jacksonville, Ill., were constructed by a grateful State be­ purpose? fore the Federal Government instituted its program of Gov­ Mr. WOODRUM. Yes; we have money in the bill fox ernment hospitalization for this type of disabled veteran. additions to new facilities, but nothing for new facilities . . These hospitals have all of the modern facilities and equip­ Mr. THOMASON of Texas. Mr. Chairman, I rise in oppo­ ment to handle neuropsychiatric cases. The loved ones of sition to the pro-forma amendment. In view of the state­ the veterans live in and around these respective communi­ ment just made by the chairman of the subcommittee, Mr. ties. There is no better or more interested personnel in any WooDRUM, that no more hospitals are to be built, and in view veterans' hospital in the Nation, and the veterans' organi­ also of the language in the next paragraph, which says that zations of these respective communities have with pardon­ no part of the appropriation shall be expended for the pur­ able pride manifested a tremendous interest L11 these sol­ chase of any site or .toward construction of any new hospital diers wha are mentally ill. Yes, ladies and gentleman of the · or home or for the purchase of any hospital or home, I desire Committee, these hospitals are dedicated to their. care and to make this observation: The War Department, due to an rehabilitation. . arrangement with the Veterans' Administration, has allo­ Moral and equitable justification frequently triumphs over cated beds in Army hospitals to veterans, including the a strict interpretation of a so-called infallible rule or regu­ William Beaumont Hospital in my own city of EI Paso, and lation. And, Mr. Chairman, may I add this: That if the time I express the hope that inasmuch as no more hospitals are ever comes when the Veterans' Administration seeks to to be built there will be a more liberal use made of Army rigidly enforce the rule or regulation by attempting to trans­ hospitals where they are not entirely occupied by Army fer these men from the only after-the-war home they have patients. The Army has a very fine modern hospital in my ever known I shall use all of the force and persuasion at my city known as the William Beaumont Hospital, which has a command, inadequate and feeble as it may be, to attempt capacity of 602 beds, and today it has 100 vacant. Likewise, to nullify such an order through proper legislative action the veterans' hospital at Albuquerque, 259 beds, and today on the floor of the House. [Applause.] has 33 beds vacant, and the tubercular veterans' hospital Mr. ENGEL. 1\11'. Chairman, I riEe in opposition to the at Fort Bayard, N.Mex., has 450 beds, with 250 vacant. In pro-forma amendment. I desire to place in the RECORD a addition to filling these veterans' hospitals, I feel that a more complete statement regarding the number of foreclosures liberal policy should be used toward the use of vacant beds about which discussion was had when the gentleman from in Army hospitals. They all belong to the Government; they Massachusetts [Mr. McCoRMACK] had the floor. In addition receive their money for support and maintenance from the to the paragraph that I read into the RECORD at that time. same Treasury that the veterans' hospitals get theirs. Mine I call attention to a table on page 616 of the committee ·is a country of magnificent distances. There are a great hearings, placed there by a witness for the Home Owners' many veterans, particularly the tubercular veterans, in my Loan Corporation, which shows . that the estimated numbe1· city, many of whom have lived there for a good many years of foreclosures to be authorized by June 30, 1937, was and have families residing there. It- is more than 250 miles 105,901, with an additional 55,000 to be foreclosed by June · to Albuquerque, N.Mex., and I contend that instead of the 30, 1938, or a total of 160,901; 135,863 of these they expect Veterans' Administration availing itself of the 50 beds in the to complete and acquire the property by June 30, 1938. William Beaumont Hospital, when there are usually a hun­ on page 651 of the hearings Mr. Russell testified as dred or more unoccupied, they ought to at least avail them­ follows: selves of the use of 100 of these beds for the reason that these Up to November 30, 1936, the Property Management Division are poor people, and -it is not right to take the tubercular, had in possession only about 17,000 properties, and only about 60 000 foreclosures h a d been authorized. But prior to the end and in some cases the mental, patients more than 250 miles, or' the fiscal year 1938 over 160,000 foreclosures are estimated to and frequently at the veteran's own expense, to Albuquerque, be authorized and foreclosure will have been completed, and the N. Mex., leaving his family residing there in El Paso, when property will actually be in possession of the Corporation in the estimated number of 130,000 cases. During the fiscal year · 1038 there is a hospital in his own city with plenty of available the Corporation will own more individual pieces of property than beds. This would be economy as well as improve the vet- 1937 ·coNGRESSIONAL RECORD-HOUSE·. 813 eran's mental condition, because he would be near his family Mr. WOODRUM. I think it certainly would give valuable and where he could see them often. information, but the gentlewoman from Massachusetts un­ I want to express the hope that there be a more liberal doubtedly knows that the Veterans' Administration is making' policy in this matter. It is purely a matter of administra­ a very thorough survey and study of the problem right now. tion, because they have a financial adjustment each year Mrs. ROGERS of Massachusetts. But I find the individual between the War Department and the Veterans' Adminis­ Members know the needs in their own districts better than tration for the use of these facilities. Colonel Pipes, com­ the Administration, and I do not see why the Administration manding ·officer at William Beaumont, has been very fine should be the deciding factor on that. and considerate about it. He has, in fact, been generous Mr. WOODRUM. I think that is true. about emergency cases. Today there are 63 patients in the [Here the gavel fell.] William Beaumont Hospital, but there is no reason in the The Clerk read as follows: world why there shoUld not be 75 or 100, because many No part of this appropriation shall be expended for the purchase veterans are begging to go in there; It is not right to send of any site for Ol' toward the construction of any new hospital them off two or three hundred miles at additional expense, or home or for the purchase of any hospital or home; and not when there is a Government hospital right there in their more than $4,000,000 of this appropriation may be used to repair, alter, tmprove, or provide facilities in the several hospitals and own city, whether it is an Army hospital or a veterans' homes under the jurisdiction of the Veterans' Administration either hospital. by contract or by the hire of temporary employees and the purchase The CHAIRMAN. The time of the gentleman from of materials. Texas [Mr. THOMASON] has eXJ)ired. Mr. WOLCOTT. Mr. Chairman, I move to strike out the Mr. WOODRUM. Mr. Chairman, I lise in opposition to last word. - . the amendment. I should like to ask whether the prohibition of the use of May I ask the gentleman from Texas if the hospital at this appropriation for the construction of any·new hospital El Pasa is a general hospital? or home would affect in any manner the construction of the Mr. THOMASON of Texas. That is a general Army proposed new veterans' hospital at Detroit? hospital. Mr. WOODRUM. Of course, this difficulty arises there. Mr. WOODRUM. The prohibition here is that the funds appropriated in this bill are not available for new construc­ that the tubercular veterans would not be satisfied to be sent to a general hospital, nor do they have facilities to take tion-that is, for beginning new construction. care of them. They do not have facilities to take care of Mr. WOLCOTT. Is it the gentleman's understanding that the mental cases. That is the difficulty we are having. the money which has been heretofore appropriated is now They have plenty of available space for general cases, but it available for the construction of the hospital at Detroit? is the tubercular cases and the mental cases that requ1re Mr. WOODRUM. All contracts that are let, we have special places, special treatment, and special equipment. already appropriated the money for those projects. This Mr. THOMASON af Texas. I know they have mental does not stop that. patients at the William Beaumont Hospital, and I think Mr. WOLCOTT. I do not understand that the contract tubercular patients, too. At Fort Bayard .they have 250 has been let for the construction of the hospital. vacancies~ But the William Beaumont Hospital should t~ke Mr. WOODRUM. But the money has been allocated out care of these people in El Paso, instead of sending them off of a previous allotment. It is not involved in this bill. up to New Mexico, 250 miles. a.t an additional expense, when Mr. WOLCOTT. The gentleman meant when he said there are plenty of va.cant beds there. Our climate is "the contract is let", that the money has been allocated and specially adapted to the cure of tuberculosis. Many of our is still available for that use? leading citizens have come there with the trouble and been Mr. WOODRUM. Yes; that is true. cured. There would be no additional expense to the tax­ [Here the gavel fell.J payers. In fact, it would be wise economy. The facilities The pro-forma amendment was withdrawn. are not used to full capacity. I have several times urged The Clerk read as follows: the Veterans' Administration to let us have at least .75 of these beds, and I think 100 would not be too many. I am FEDERAL HOME LOAN BANK BOARD happy to be assured by the committee that my request will For the administrative expenses of the Federal Home Loan Bank Board, established by the Federal Home Loan Bank Act of have just ·and fair consideration. July 22, 1932 (47 Stat., p. 725), including personal services in the Mr. EDMISTON. Mr. Chair~ will the gentleman District of Columbia and elsewhere; travel expenses, in accord­ yield? ance with the Standardized Government Travel Regulations and the act of June 3, 1926, as amended (U. S. C., title 5, sees. 821- Mr. WOODRUM. I yield . . 833); printing and binding; law books, books of reference, and Mr. EDMISTON.- In the report of the investigation be­ not to exceed $500 for periodicals and newspapers; procurement fore the Veterans' Committee, I know it is true in my State of supplies, equipment, and services; typewriters, adding machines, and other labor-saving devices, including their repair and ex­ of West Virginia that the greatest difficulty we have is with change; rent outside of the District of Columbia; payment, when the mental cases. Is that true throughout the country? specifically authorized by the Board, of actual transportation ex­ Mr. WOODRUM. That is true throughout the country. penses and not to exceed $10 per diem in lieu of subsistence and We will have to build new hospitals for the mental cases, or other expenses of persons serving, while away from their homes, without other compensation from the United States, in an ad­ equip some of the older hospitals. visory capacity to the Board; use of the services and facilities of Mr. EDMISTON. I know that our jails are accommodat- the Home Owners' Loan Corporation and the Federal Savings and ing some of the veterans. Loan Insurance Corporation; and all other necessary administrative expenses, $1,140,000: Provided, That expenditures hereunder shall Mr. WOODRUM. Yes. not exceed (a) the receipts derived during the fiscal ·year 1938 Mr. RABAUT. Mr. Chairman, will the gentleman yield? from assessments upon the Federal home-loan banks, the Home Mr. WOODRUM. I yield. Owners' Loan Corporation. and the Federal Savings and Loan Insurance Corporation, and from other sources, and (b) the uno Mr. RABAUT. The patients that were being accommo­ obligated balance of such receipts during prior fiscal years: Pro­ dated at the general hospital in Michigan we had trans­ vided further, That all necessary expenses (including services per­ ferred to the marine hospital when it was. brought to the formed on a contract or fee basis, but not including other per­ sonal services) in connection with the sale, issuance, and retirement attention of the board. of, or payment of interest on, debentures or bonds, under said Mrs. ROGERS of Massachusetts. · Mr. Chairman, will the Federal Home Loan Bank Act, as amended, shall be considered as gentleman yield? nonadministrative expenses for the purposes hereof: Provided Mr. WOODRUM. I yield. further, That, except for the limitations in amounts hereinbefore specified, and the restrictions in respect to travel expenses, the Mrs. ROGERS of Massachusetts. Does not the gentleman administrative expenses and other obligations of the Board shall think it would be a good plan to have hearings before the be incurred, allowed, and paid in accordance with the provisions World Committee in of said act of July 22, 1932, as amended (U. S. c., title 12, sees. War Veterans' regarding hospitalization 1421-1449). . order that the Members might be heard and give their views as to the facts in their own districts? Mr. WOODRUM. Mr. Chairman, I offer an amendment. 814 _CONGRESSIONAL RECORD-HOUSE . FEBRUARY 3 . The Clerk read as follows: and in order to give the service to the people who have Committee amendment offered by Mr. WooDRUM: On page 47, loans, to cut this amount any further. I should be very glad line 24, after the "$1,140,000", insert a comma and the following to see all these expenses reduced, but I do not think it is language: payable from assessments upon the Federal home-loan banks and receipts of the Federal Home Loan Bank Board from safe. They need the personnel. They think they need the other sources for the fiscal year 1938 and prior fiscal years"; and rest of the personnel, the other 1,000 employees; but I for strike out the language beginning with the word "that" in line 25, one shall be very well satisfied if they get by without down to and including the word "further" in line 5 on page 48. deficiency. Mr. WOODRUM. Mr. Chairman, I have submitted this Now comes another unknown quantity, the great flood in amendment to the gentleman from Massachusetts. It is the Ohio and Mississippi Valleys. Undoubtedly it is going simply a change in phraseology. It was discovered by the to cause the Home Owners' Loan Corporation to take over clerks of the committee. They took it up with the Budget. a great many properties in that area. The Corporation will It is designed to accomplish the same effect, but it is a dif­ have to manage these properties and handle them, so I do ference in phraseology, I have discussed the matter with not believe it is safe to make any further cut. the gentleman from Ma..ssachusetts [Mr. WIGGLESWORTH]. . Mr. WOLCO'IT. Mr. Chairman, will the gentleman yield? . The CHAIRMAN. The question is on the committee Mr. .WOODRUM. I yield . . amendment. Mr. WOLCO'IT. Will the gentleman explain what addi­ The committee amendment was agreed to. tional expense there is to administering foreclosed proper­ The Clerk read as follows: ties?. This expense is not chargeable against the Home HOME OWNERS' LOAN CORPORATION Owners' Loan Corporation but is chargeable against the Not to exceed $30,000,000 of the funds of the Home Owners' property, is it not? .Under . the law .of. almost all of the Loan Corporation,. established by the Home Owners' Loan Act of States it is a matter of charge at the time the sale is made 1933 (48 Stat., p. 128), shall be available during the fiscal year which is added to the price of the property. 1938 for administrative expenses of the Corporation, including per­ sonal services in the District of Columbia and elsewhere; travel Mr. WOODRUM. No; I do not think it is exactly as the expenses, in accordance with the Standardized Government Travel gentleman st~ted it. I think in some of. the States fees are Regulations and the act of June 3, 1926, as amended (U. S. _C., regulated and fixed by statutes. When there is a default, title 5, sees. 821-833); printing and binding; law books, books of -reference, and not to exceed $500 for periodicals and newspapers; foreclosure proceedings are - started. Then the question procurement of supplies, equipment, and services; maintenance, arises about the laws of the particular State in which the repair, and operation of motor-propelled passenger-carrying vehi­ foreclosure proceeding is to be held. Then papers must be cles, to be used only for ofticial purposes; typewriters, adding ma­ draWn., attorneys must be consulted, the management must chines, and other labor-saving devices, including their repair and exchange; rent in the District of Columbia and elsewhere; use of go to see the property, and there are a thousand and one the services and facilities of the Federal Home Loan Bank Board, details to be looked after. I may say to the gentleman from Federal home-loan banks, and Federal Reserve banks; and all Michigan that I was of the opinion when I first began con­ other necessary administrative expenses: Provided, That all neces­ sary expenses (including services performed on a force account, sidering it that there should be very little expense in con­ contract or fee basis, but not including other personal services) in nection with a foreclosure of property under this act; but I connection with the acquisition, protection, operation, mainte­ was surprised to hear everyone, whose opinion I respect as nance, improvement, or disposition of reru or personal property greater than my own, say that it is very much more ex­ belonging to the Corporation or in which it has an Interest, shall be considered as nonadministrative expenses for the purposes pensive to collect money than it is to lend it; and this seems hereof: Provided further, That except for the limitations in to be the experience they are having. amounts hereinbefore specified, and the restrictions in respect to Mr. WOLCO'IT. Mr. Chairman, will the gentleman yield travel expenses, the administrative ex_penses and other obligations further? · of the Corporation shall be incurred, allowed, and paid in accord­ ance with the provisions of said Home Owners' Loan Act of 1933, Mr. WOODRUM. Yes. as amended (U. S. C., title 12, sees. 1461-1468}. Mr. WOLCOTT. To be perfectly frank with ourselves, is Mr. TABER. Mr. Chairman, I offer an amendment. not this additional appropriation necessitated by the fact The Clerk read as follows: that the Government is biddjng in these mortgages at the Amendment offered by Mr. TABER: Page 48, line 19, after the sheriffs' sales? word "exceed", strike out "$30,000,000" and insert in lieu thereof . Mr. WOODRUM. None of .this money is for that pur­ "$29,000,000." pose, not a penny of this $30,000,000 is for the purpose of Mr. TABER. Mr. Chairman, this amendment is offered purchasing-any of the property. for the purpose of reducing this appropriation to last year's Mr. WOLCO'IT. Where is that money coming from? figures. This Corporation has $2,800,000,000 of mortgages as - Mr. WOODRUM. That will come from the revolving compared with the Farm Loan Administration mortgages fund. They have the right to use their revolving . fund of $1,900,000. The farm-loan banks are spending to service for the purchase of property. . all their loans $11,010,000 per year. It is costing at the pres­ · Mr. WOLCO'IT. Then none. of the money_carried in this ent time for the Home Owners' Loan Corporation much bill would. be for the purpose of buying in mortgages? more in proportion than it is for the Farm Loan Adminis­ - Mr. WOODRUM. The gentleman is correct. tration. At the same proportion the Farm Loan Adminis­ Mr. WOLCO'IT. Will the gentleman explain, then, why tration expenses would be about $18,000,000, and they are an the Government is put to the expense that a mortgagor active outfit taking new loans at large expense involved in would be .put to. under like circumstances? connection with them. For instance, 17 percent of their Mr. WOODRUM. Because of the . basic law that we whole work is for new loans. Now, it would seem to me with passed, the foreclosure proceeding is at the expense of the that situation they should be able to take a cut back at Government. The Government ultimately becomes the least to where they are operating today instead of having to owner of the property. have an increase for the next year. Mr. FITZPATRICK. Is it not a fact that if that were a Mr. WOODRUM. Mr. Chairman, this matter was dis­ private loan and there were a failure to pay taxes or interest cussed earlier this afternoon when we started to read the it would be foreclosed immediately? Here they stay for a bill. The Home Owners' Loan Corporation at the peak of year or 2 years and see if they cannot compromise and pre­ its lending activities had 2,200 people on its pay roll. When vent foreclosure. The gentleman should be in favor of every­ they quit taking loans they reduced their personnel to 1,500. thing to prevent foreclosure, and should favor the spencling The question of foreclosures has now come up. It has of money to make these investigations and compromises. been discussed here, and there is no question about the fact [Here the gavel fell.J that it is going to take a lot of people to handle these Mr. WOLCOTI. Mr. Chairman, I move to strike out the intricate matters of attending to the foreclosure proceedings. last word of the amendment. The Budget made a very great cut in their request for Mr. Chairman, I think most of the lawyers of the House appropriations, and the subcommittee made a further. cut have had some experience in the foreclosure of mortgages, of $2,000,000, bringing it down to $30,000,000. I do not be~ either by representing the mortgagor or the mortgagee. If lieve it is safe in order to protect the Goyernment~s interest my memory serves me correctly, the laws of most of the 1937 CONGRESSIONAL RECORD-- HOUSE 815 States provide an inadequate attorney fee, but that the cost ministration acquired under authority of title n of said National Housing Act, shall be considered as nonadministrative expenses tor of the sheriff's sale, the publication, and all costs of any the purposes _hereof, and shall be paid from the mutual mortgage court proceeding are added to the indebtedness and are de­ insurance fund created by said act: Provided further, That except ducted by the sheriff before any excess over and above the for the limitations in amounts hereinbefore specified, and the mortgage indebtedness is returned to the mortgagor. restrictions in respect to travel expenses, the administrative ex­ penses and other obligations of the Administration shall be in­ It would seem to me that there is not nearly the amount curred, allowed, and paid in accordance with the provisions of of the expense involved, therefore, to the Government in the said act of June 27, 1934, as amended (U. S. C., title 12, sees. foreclosure of this indebtedness as there was in making the 1701-1723). original loan. We set up elaborate offices throughout the Mr. WIGGLESWORTH. Mr. Chairman, I offer an amend­ United States and employed, I think the records show, a ment, which I send to the Clerk's desk. peak of 22,000 of a personnel to make these loans. The The Clerk read as follows: personnel has been reduced, as the gentleman from Virginia Amendment offered by Mr. WIGGLESWORTH: Page 50, line 4, strike stated, because there is not so much detail involved in the out "$9,500,000" and insert in lieu thereof the following: "$9,- foreclosure of these mortgages as there was in connection 250,000, provided that not to exceed $263,000 shall be expended with the granting of the mortgage in the first instance. for public relations and educational work." - This expense, instead of being chargeable against the Gov­ Mr. WIGGLESWORTH. Mr. Chairman, I do not think ernment, is, under the laws of a majority of the States, it will be necessary for me to take 5 minutes with respect chargeable against the property where it should be charged. to this amendment. It is designed to accomplish with ref­ For the life of me I cannot see why the Government should erence to the Federal Housing Administration the same pur­ add to its loss on these homes by paying exorbitant fees to pose that the amendment previously offered was designed lawyers or to agents in connection with the foreclosure of tc accomplish in respect to the Rural Electrification Ad­ these mortgages. ministration. The record indicates that the Federal Hous­ I think the principle of the amendment offered by thfl ing Administration intends to maintain a force of 120 per.. gentleman from New York in reducing the appropriations sons at a total cost of $513,000 for public relations and is right, and I will support it as a protest, if nothing more, educational work, which, of course, is another name for to the unnecessary, unwarranted expense that the taxpayers publicity. of this Nation are put to in maintaining upon the pay roll of The record also indicates that this service in the past ll.aS the Home Owners' Loan Corporation this exceedingly large been responsible for no less than 126,000 radio broadcasts, personnel to foreclose mortgages. We will be called upon and no less than 224,000 motion-picture showings. In ·re­ to maintain the Home Owners' Loan Corporation as an sponse to a question which I asked the Chairman of the agency for the purpose of administering Federal-owned Federal Housing Administration when he appeared .before land and liquidating that land. All of us have had experi­ the committee, Mr. McDonald stated that he thought the ence in connection with Government liquidation, and know item of over $500,000 could be largely discontinued in another how costly it is usually. year. At the present time it is remarkable that the liquidators Mr; Chairman, my amendment would simply cut this large of so many of our small banks after 4 years of receiverships sum for publicity purposes in half, leaving over $250,000 for under the Comptroller of the Currency have been able to that purpose for the fiscal year- 1938 in the ·hope that Mr~ collect on assets only enough to pay their own salaries and McDonald's prediction may be realized at the end of that the salaries of the clerks in the banks. In many instances time. as little as 2 percent in dividends have been paid to the Mr. MASON. Will the gentleman yield? depositors in these banks after 4 years of liquidation. We Mr. WIGGLESWORTH. I yield to the gentleman from are approaching the same situation in respect to the Home Dlinois. Owners' Loan Corporation. We will be compelled to main­ Mr. MASON. Would you say that the purpose of this tain an agency for the purpose of administering these re­ amendment to reduce the amount fm· publicity purposes is ceiverships, if you please, until this property is unloaded. to bring about the old, old saying that by their deed& ye The time to unload this property is when the sale is made. shall know them rather than by the propaganda they [Here the gavel fell.] put out? . The CHAffiMAN. The question is on the amendment Mr. WIGGLESWORTH. I agree with the gentleman that offered by the gentleman from New York [Mr. TABER]. the functions of governmental agencies should be deeds and The amendment was rejected. not words. . The Clerk read as follows: Mr. WOODRUM. Mr. Chairman, I am sympathetic with, FEDERAL HOUSING ADMINISTRATION the general attitude of the gentleman from Massachusetts Not to exceed $9,500,000 of the funds advanced. by the Recon­ [Mr. WIGGLESWORTH] in trying to hold doWn the items in struction Finance Corporation to the Federal Housing Adminis­ tration, created under authority of the National Housing Act of this bill for· educational and informational services. and June 27, 1934 (48 Stat., p. 1246), shall be available durmg the without a doubt the committee impressed upon each bureau fiscal year 1938 for administrative expenses of the Administration, or administration that came before us our attitude in this including: Personal services in the District of Columbia and else­ respect, and this is contained in the report. What has been where; travel expenses, in accordance with the Standardized Gov­ ernment Travel Regulations and the act of June 3, 1926, as said upon the :floor here today, I am sure, will have its effect! amended (U.S. C., title 5, sees. 821-833), except employees engaged This is the first time these several .agencies have been in the inspection of property may be paid an allowance not to before the committee. They are using their own funds. exceed 4 cents per mile for all travel performed by motor vehicle This money i& not coming out of the Public Treasury; and, in connection with such inspection: printing and binding; law books, books of reference, and not to exceed $1,500 for periodicals so far as I was able to determine-and I believe the gentle~ and newspapers; not to exceed $1,500 for contract actuarial serv­ man will bear me out in this statement-they are doing a ices; procurement of supplies, equipment, and services; mainte­ good job and they have taken a terrific cut. nance, repair, and operation of motor-propelled passenger-carrying vehicles, to be used only for official purposes; payment, when spe­ Mr. TABER. Mr. Chairman, will the gentleman yield? cifically authorized by the Administrator, of actual transportation Mr. WOODRUM. I yield. expenses and not to exceed $10 per diem in lieu of subsistence and Mr. TABER. Is it not a fact that this money comes out other expenses to persons serving, while away from their homes, of funds that the R. F. C. has allocated to these people? without _other_compensation from the United States, in an advisory capacity to the Administration; not to exceed $2,000 for expenses Mr. WOODRUM. Some of it has been allocated to take of attendance, when specifically authorized by the Administrator, care of the work. at meetings concerned with the work of the Adminlstration; type­ writers, adding machines, and other labor-saving devices, including Mr. TABER. That is out of the Public .Treasury? their repair and exchange; rent in the District of Columbia and Mr. WOODRUM. The Federal Housing Administration is elsewhere; and all other necessary administrative expenses: Pro­ making a good showing, and. there is a very likely prospect vided, That all necessary expenses (including serv_ices performed that the Government will not lose very much because of the on a contract or fee basis, but not including other personal serv­ ices) in connection with the operation, maintenance, improve­ fine operation of the Federal Housing Administration. I ment, or disposition of real or personal propertY. of the Ad• expected them to lose money. I expected the Government 816 :coNGRESSIONAL. ~ECORn.:-HOUSE. ;FEBRUARY 3 to have an .investment at the end of it, but they are doing stand .on their oWn merits or demerits and carry their own a good job. pa~ checks: along with them and not camoUflage by 'offering . We do not. pay for any radio time. Let me clear that up · a. resolution and saying that-it carries no appropriation and now: However, it has been.necessary with several of these then take the personnel of a department to carey it on. organizations to have a large ·force for informational and Mr. MAVERICK. Mr. Chainnan, I make the point of educational purposes. I wish . you could see the volume of order that the Chairman did not rule on the pomt of order. Jetters and inquiries that come to the Federal· Housing Ad­ The CHAIRMAN. The Chair did rule and· sustaiiled the ministration and the Home Owners' Loan Corporation and point of order. ~ · pne or two others- seeking· information and · explanation. Mr. MAVERICK. A parliamentary inquiry. · The Social Security Board is another agency which is-in the The CHAIRMAN. -The-gentleman will state it. same position. It has been -necessary in order ·that · the Mr. . 'MAVERICK: If, the ·Chair' sustained· the point of public may_know what their rights are and what these serv­ order, how could- the gentleman from Virginia -offer an ices.are offering that they spend what would appear to. be amendment to a paragraph that did not exist? The section J.arge sums of money. went out on the point of orde:r. - - I hope the Committee will -allow-the appropriation -to go .· The CHAIRMAN. The Committee amendment was ·to the as the-committee has ·brought it _in here at this time, and preceding ·secti-on. · let us have a year's experience on it, and I can assure the , Mr. · MAVERICK. Will the gentleman from Virginia gentleman from Massachusetts and the Committee that I yield? - - - ~hall -be ready to cooperate in cutting it down as far- as .. Mr. WOODRUM; -I yield. possible. . Mr. MAVERICK. Did the gentleman offer an amend- I hope the amendment will be voted down. · · ment -to section 4-? . -.. - . . The amendment was rejected. Mr. WOODRUM. If the gentleman.. will read the CoN­ The Clerk read as follows: GRESSIONAL RECORD in the morning, he Will see What hap­ SEc. 4. None of· the funds herein appropriated for any executive pened. [Laughter.] department or other executive agency shall be available to pay . Mr. MAVERICK. · Well, you cannot expect me to be as any compehsatiUn "or other expelise' in connection with any investi­ gation or inquiry under a resolution of either House of Congress, wise and intelligent as-the·gentleman from Virginia. I asked exceJ)t· tt·ue a conc'tirrent ·resolution· of ·the two Houses; but-this a respectful-question. - · shall not be construed·to prohibit or limit the authority or scope - Mr. WOODRUM. The gentleman. made a point of order of .action .of any such. executive department or other executive against the section and I conceded the point of order~ I of­ ~ge?CY ~der s~!>staJ?-t1ve or ·a~propriatio:n _law. · · · · fered an amendment to the bill; and the Chairman sustained , Mr. ELLENBOGEN and Mr-. MAVERICK· rose ~ the point of order. I -began the debate on the amendment : Mr. -ELLENBOGEN. Mr.-Chairman, I .make the· point of and . then the gentleman from Pennsylvania undertook to order that section 4 is not in order. - , · · · make a -point· of order--which-was too late, debate having Mr. WOODRUM. Mr. ch8.irman,·I c-oncede the 'p(,il)t of been started on the amendment. order and shall offer an amendment... ,. - .. · Mr. ELLENBOGEN; Mr. Chairman,- I wish to offer a sub­ : The CHAIRMAN. 'The. Chair sustains the point of order. stitute amendment;- . . Mr. WOODRUM. Mr. Chaiiman, I offer a coiillllittee ' Mr. WOODRUM. Mr. Chairman, I yield to the gentle­ runendment. man from Texas-· [Mr RAYBURN]. The Clerk read as follows·: - · , Mr. RAYBURN. - Mr. Chairman, I think it would be well Committee amendment offered by Mr. WooDRUM: Page 56. nne if we could get this matter straightened out. I agree with 23, after section 3, insert: the gentleman from Virginia that there ought to be some­ · "SEc. 4. None of the funds herein appropriated for any executive department or other executive agency shall be available· to pay thing in the bill whereby we can have a · conference with any·compensation: or other expense 1n connection with any investi­ the Senate. · The Senate will in ·aH probability. put on the gation-or inquiry under a resolution of either House of Congress." same substitute that they put on the deficiency bilL I want Mr. WOODRUM. Mr. Chairman, the amendment which to say that I am in sympathy with the compromise that they I have offered is designed to protect the appropriation acts put into the bill yesterday. . When that bill goes to confer­ of Congress. ence, as it should be tomorrow or next day, is it not the gen­ Mr. ELLENBOGEN. 1\t!r. Chairman, I reserve a point of tleman's thought that whatever is agreed upon in confer­ order against the amendment. ence should be the provision that should go into all of these Mr. WOODRUM. Mr. Chairman, it is now too late to appropriation bills? reserve a point of order against the amendment. Mr. WOODRUM. Yes. The CHAIRMAN. Debate has begun and the gentleman Mr. RAYBURN. It seems to me that that is the way from Virginia has the :floor. by which we may be able to settle this thing, without de­ Mr. WOODRUM. You will recall that in the deficiency bating it every time an appropriation bill comes on the bill there was a provision somewhat similar to this section 4, :floor. The House and the Senate can agree on this provi­ and that provision is now before the other body for con.:. sion, and then the matter can come back to the House and sideration in an effort to compose difierences and work out we can have a clear vote in the House. some suitable lailguage. . Mr. WOODRUM. I concur in what the gentleman says, Here is what the amendment ·purports to' do,· and I believe that whatever is finally worked out between the two Houses it will certainly have the sympathetic support of the Mem­ in conference as the appropriate provision on the deficiency bers of Congress. · We found in examining the estimates -for­ appropriation bill should be the provision carried on all several of the departments-for instance, one of the major of the bills, but I do call attention to this: If I do not departments of the Government for which we appropriate get something on the subject in this bill, then we will be large sums of money to carry out -very important public powerless, in conference, to put such a thing in the bill, functions-that in 18 months' time $400,000 of the money unless the Senate chooses to initiate it in the Senate and we had appropriated for that Department had been used to put such a provision on the bill there. Therefore I want pay full-time personnel who were working upon an investi­ to see this amendment get in the bill so that we will have gation ordered by the legislative body at the other end of something to work on. the Capitol. This agency. was before our committee .com­ Mr. RAYBURN. I do not object to that procedure, because plaining that it did not have enough personnel to carry on I think the House committee ought to have that leeway; its regular functions. but allow me to repeat, in order that I may not be misunder­ And yet the startling fact developed that there were 80 or stood, that I am sympathetic to something similar to this, 90 members of their personnel engaged in an investigation some compromise being worked out, because I know this to by another body in Congress. be the truth, that in investigations that have been conducted . I . am not complaining as to the merits or demerit6 of any by the Committee on Interstate and Foreign Commerce, of 1nvestlgat1on, but it is my idea that investigations should · which I was the chairman for 6 years, we could not have 19_~~ ·----:- _ .C .O~GRESSIONAL RECORD~HOUSE :817 ,gotten tbe money, nor could we: have gQtten the exPert help , frien'iwof . labor. and _an advocate and a ..worker for labor, we secured from a commission like the Interstate Comm.erce and as chairman of the Committee on Civil Service -I know .Commission, and .we. could not have done the business -we .he is sympathetic. with labor. He .does not believe -in-peo­ _did; and for that reason I want to see . something worked . ple working overtime without being paid. . From my. cnn­ out.-- .. _versation with the gentleman . from Georgia I -understand Mr. ELLENBOGEN. _Mr. Chairman, I offer the following he will later .briug. in a bill to .provide that these workers substitute amendment. , -, ; who work overtime will. either be given -leave to make up . Tbe CHAIRMAN. ·.The gentleman from Pennsylvania , .for .the extra time or will be paid-time and a half for over- offers an amendment, which the Clerk .will report. _ time work. Last. year he had similar provisions in a bill The Clerk read as follows: . . reported to the House. This -bill passed the House, but those ·- Subst itute amendment ofl'ered by Mr. ·ELLENBOGEN: Page-57; line • ,good .provisions were. stricken.out -in the, Senate. This time .. · 2. after "Congress", strike out ."except it be a concurrent resolu-" . .I believe the Senate wiU be. more liberal in their view of this - . and all of lines 3. to 6, inclusive, and insert "unless the de_­ question. partment or agency from whose staff such person is detailed or -loaned shall render -to the-Secretary of the Senate or the Clerk of With. that coming from the chairman of the Committee the House of Representatives (according .as the .Sena.te o~ the- House • ~on ~.Civ.il - Service I- will -be glad to cooperate- with him in ot Repz:esentatives shall have ordered such investigation or jn­ quiry) a statement on or before the lOth · day of each mQnth of every way possible to do away. with this evil of overtime the number, grade, or status and monthly compensation of the .work without pay. . persons so detailed or loaned·from the -staff of such department or , [Here the gavel fell.] - agency during the preceding calendar month." . .Mr. WOODRUM. - Mr. Chairman,, I move -that the Com­ Mr. WOODRUM. Mr. Chairman, I make the point of mittee do now rise and-report-the bill back to the House.with o1·der against the amendment that it is new -legislation on an sundry amendments, with the recommendation that the ·appropriation bill. amendments be agreed to and the-bill as amended do pass. · The-CHAIRMAN. It is obviously new legislation; and the The motion was agreed to. .point of order is sustained. Accordingly the Committee rose; and the Speaker having . Mr. BOILEAU: ·Mr. Chairman, I rise in opposition to the resumed the chair; Mr. BoLAND, Chairman of the Committee amendment offered ·by the gentleman from Virginia. I ·or the Whole House on the ·state of the Union, -reported that call the attention of the Members of .the. House, and par­ that Committee_had had under consideration the-bill H : R. ticularly of the gentleman from ,Virginia, -to the fact that · ·4064, · the independent ·offices appropriation bill~ ·and -·di­ during- the last session of Congress an investigating com­ ·rected ·him -- to -report ·the same back to the House with mittee was appointed to investigate the activities of the sundry amendments, with the recommendation that -the American Retail Federation. - I submit to you that if it had amendments be agreed to and the bHI as amended do pass. not been for· the-services of- the employees of the Fweral - Mr: WOODRUM. Mr; Spe-aker, I move the previous ques­ ·Trade Commission it would have been very difficult for us tion on the bill and all amendments to final-passage.- ,to start in that investigation. In other words, the Federal The previous question was ordered. -· ._ - -· · - ~ · - -Trade Commission had the type of men that we needed tor , The SPE.(\KER. Is a separate . vote demanded on any ' ·· -· · -the purpose .of assi.sting us _in the examination necessary in · ~mendment? · lf not, the Chair will put-them en blo'c. that investigati0n. Their services were very valuable. Had · The·question is on agreeing to the amendments. the provision which the gentleman from Virginia has offered The amendments were agreed to. · been in the law last year, the limitation upon the appropria­ The SPEAKER. The question is on· the engrossment and -tion, those trained men would not have been able to help us. third reading of the bill, as amended. I call the gentleman's attention to the necessity of being The bill was ordered to be engrossed and read a third careful, so that we do not hamstring the committees ap­ time, and was read the third time. pointed by the House and the- ,Senate. in carrying out these The SPEA-KER. The question is on ·the passage of the investigations. I think we should make available to the bill. committee these trained men in the departments, and I do The bill was passed. not believe that we should accept an amendment of this kind, On motion by Mr. WooDRUM, a motion to reconsider the although I do see some good reasons proposed by the gentle­ vote by which the bill was passed was laid on the table. man from Virginia to put this into conference; and I hope ELEVENTH INTERNATIONAL DAIRY CONGREss--MESSAGE FROM THE that when the first appropriation bill comes back with this or PRESIDENT OF THE UNITED STATES similar language of this kind in the bill, we will have full opportunity to discuss the matter and decide upon a policy The SPEAKER laid before the House the following mes­ with reference to all the appropriation bills. sage from the President of the United States, which was · The CHAIRMAN. The question is on the amendment read, and, together with the accompanying papers, referred offered by the gentleman from Virginia. to the Committee on Foreign Affairs: The question was taken; and on a division (demandeod by To the Congress of the United States: Mr. ELLENBOGEN) there were-:-ayes 68, noes 16. I commend to the favorable consideration of the Congress So the amendment was agreed to. the enclosed report from -the Secretary of State, to the end The Clerl{ read. as follows: that legislation may be enacted to authorize an appropria­ SEc. 5. This act may be cited as the Independent Offices Appro- . tion .of $10,00() for the expenses of participation . by the priation Act, 1938. United States in the EJeventh International Dairy Congress, Mr. CONNERY. Mr. Chairman, I move to strike out the · to be held in Berlin, Germany, in August 1937. last word. FRANKLIN D. ROOSEVELT. Mr. Chairman, I simply rose at this time to say that at THE WHITE HOUSE. the end of section 4 I had intended to offer an amendment PUBLIC WORK8--MESSAGE FROM THE PRESIDENT OF THE UNITED which I read to the House yesterday. That amendment STATES (H. DOC. NO. 140) would prohibit overtime work without time and half over~ The SPEAKER laid before the House the following further time pay. On looking up the parliamentary procedure in message from the President of the United States, which was regard to germaneness and legislation on an appropriation · read, and, together with the accompanying papers, and illus­ bill, I could not find any way in which I could get this mat­ trations referred to the Committee of the Whole House on ter before the committee without it being subject to a point the state of- the Union and ordered printed: -of order. I tried to draw up a limitation, but evidently it would not be a limitation. It would be legislation on an ap­ To the Congress of the United States: .. propriation. However, I have conferred with the· chairman During the depression we have substantially increased the -of the Committee on Civil Service, the ·gentleman from facilities and developed the resources of our country for the Georgia [Mr. RAMSPECKJ. The gentleman from Georgia is common.welfare through .public works and work-relief pro­ also a member of the Committee on Labor. He is a great grams~ We have been compelled to undertake actual work LXXXI-52 818 CONGRESSIONAL RECORD-· HOUSE FEBRUARY 3 somewhat hurriedly in the emergency: Now it is time to United Automobile Workers, to the American Federation of Labor, develop a long-range plan and policy for construction-to and the number who are not members of any labor organization. (e) The wage loss to the worker. provide the best use of our res~urces and to prepare in (f) The number of "sit down" strikers in Fisher Body Plant advance against any other emergency. No. 1, Flint, Mich., who were formerly employed by that company. In a previous message, I have suggested a permanent (g) The number of such "sit down" strikers who were not so employed. planning agency under. the Chief Executive in order that, (h) The number of the "sit down" strikers in that plan t who among other things, all public works proposals may filter were not residents of Flint prior to the strike. from the many individual departments and bureaus to a (i) The same information with reference to Fisher Body Plant central planning place and thence to the President. No. 2, Flint, Mich. (j) The number of pickets who are actively engaged in picketing I have also suggested to the Congress that following this in Fisher Body Plant No. 1, Flint, Mich. course of planning the President will annually submit to (k) The number of pickets who were not employed in Fisher the Congress a list of projects which have been studied and Body Plant No. 1, Flint, Mich., prior to the strike. (1) The same information with reference to Fisher Body Plant approved and, at the same time, inform the Congress, No. 2, Flint, Mich. through the Budget, of the total amount of Federal funds (m) The number of pickets who are engaged in picketing the which, in his judgment, should be appropriated for public Briggs Body Plant in Detroit, Mich. works during the following fiscal year. (n) The total number of persons who acted as pickets at any time at the Briggs Body Plant in Detroit, Mich. The list of public works submitted by the President in (o) The total number of employees in said plant. the Budget message would, of course, be wholly advisory, (p) The total number of pickets who are not residents of the for it is within the discretion of the Congress to eliminate State of Michigan. ( q) The total number of pickets who are not employees of proJects from this list, to alter the scope of projects, or to said plant. add other projects. . (r) The total number of persons who have been or who are The report of the National Resources Comm~ttee on pub­ receiving aid or relief from the Government and Who were at the lic works planning which I submit today should, of course, time of the strike dependent upon the motor industry for their livelihood. be read in conjunction with the recommendations for high­ (s) Whether the pickets at any of these closed plants previously ways, bridges, dams, flood control, and so forth, already by either contact or show of force prevent other employees of these under construction, estimates for which have been sub­ plants from going into the plants to work. mitted in the Budget, and also should be read in conjunc­ (t) If the answer to the above is in substance that employees are prevented from working, under what provision of law, statute, tion with other special reports, such as the report of. the Executive order, or opinion does the Department justify, if it does Great Plains Committee which I expect to submit to the justify, the Government's failure to furnish protection under Congress in a few days. article 14 of the Federal Constitution? . (u) Are "sit down" strikers in possession of any industrial con- The National Resources Committee submits a 6-year pro­ cerns in Michigan? . gram, based on selection and priority of public works. The (v) If the answer be in the amrmatlve, under what statute, period of 6 years is arbitrarily chos"en and can, of course, be order, rule, or opinion of the Department of Labor are these "sit made to fit into annual future appropriations made by the down" stl·ikers in poS.session of such plants? (w) Approximately how many persons who desire to work are Congress. deprived of employment by the "sit down" strikers, and how many The report also contains recommendations on the timing of them will be given relief aid by the Federal or State Gov .. of public works and division of costs in their relation to the ernment? necessary organization of future continued planning. I have (x) What sums, if any, are being paid to the "sit down" strikers in each plant while they are engaged in strike activities? already referred to this in my message relating to the re­ (y) What sums, 1! any, are being paid !or pickets? organization of the executive branch of the Government. (z) By whom or what organizat ion are such sums being paid, As an example of the kind of reservoir of projects con­ and from what source are they derived? stituting the 6-year program, a drainage-basin study is Mr. CONNERY. Mr. Speaker, I ask unanimous consent included in the report. This summary list of projects in­ that the Clerk may read the report. volving the uses of water is not to be regarded as fixed or The SPEAKER. Without objection, the Clerk will read final, as the report itself notes, but rather indicates a great the report. forward step in the development of the planning process, There was no objection. considering not one project alone but the relationships be­ The Clerk read the report, as follows: tween a great group of projects dealing with water use The Committee on Labor, to whom was referred the resolution and control. (H. Res. 96) requesting the Secretary of Labor to furnish the Through the formulation and annual revision of a pro­ House of Representatives with all information available on the gram of all types of construction, revision, and adoption of automobile strike, having had the same under consideration, re­ port it back to the House and recommend that the resolution dO the program by Congress and appropriations under regular not pass. budgetary procedm·e timed in part in relation to economic The following letter from the Honorable Frances Perkins, Secre­ needs, we can provide for the orderly development of our tary of Labor, is submitted for .the information of the House. resources and the provision of needed facilities for our DEPARTMENT oF LABoR, OFFICE OF THE SECRETARY, people. Washington, February 2, 1937. FRANKLIN D. RoosEVELT. Hon. WILLIAM P. CoNNERY, Jr., THE WmTE HousE, February 3, 1937. Chairman, Committee on Labor, House of Representatives, Washington, D. C. AUTOMOBILE INDUSTRY STRIKES MY DEAR CONGRESSMAN CONNERY: I have your letter of February 1, 1937, and appreciate your calling my attention to House Resolu­ Mr. CONNERY. Mr. Speaker, I submit a privileged report tion 96, which has been referred to your committee. The reso­ (H. Res. 96) from the Committee on Labor. · lution directs the Secretary of Labor to furnish the House. of Rep­ The Clerk read as follows: resentatives such inforniatiOJl as may be in my possession or which may be available to the Department regarding certain matters in House Resolution 96 connection with current and recent strikes of workers in various Resolved, That the Secretary of Labor be, and he 1s hereby, branches of the automotive industry, with particular reference to directed to furnish the House of Representatives all such informa­ the labor dispute in the Fisher Body Plants at Flint, Mich., and tion as he may possess, or which may be available in the Labor the Briggs Body Plant at Detroit. · Department, and which w1ll show or tend to show- I ·hope that the House wm not adopt this resolution, as it would ( a.) The name, the location of any and all industrial concerns seriously interfere with the efforts being made by the Federal and having to do with the production of motor vehicles (and any of the State Governments to achieve an equitable settlement of the cur­ parts which go into the production thereof) which have been closed rent strikes and to lay the basis for stable labor relations in the either wholly or in part, directly or indirectly, by so-called "sit automobile industry. This Department has no power to compel down" strikers. the giving of sworn testimony or to subpena books and records of (b) The total number of employees in each plant so closed and any of the parties to the current dispute. Consequently, any in­ the number of the "sit down" strikers 1n each of sa.ld plants so formation which I could give would simply be based on hearsay, closed. which, as you can readily see, would be biased. (c) The number of employees in each of said plants who desire The Department of Labor is in no position to secure information to return to work. on the number of sit-down strikers and pickets at any of the (d) The number of workers in each of said plants who belong, plants. This information can be secured only if the union saw respectively, to the Committee on Industrial Orga.nizatlon, to the fit to make such data public. :Without interviewing each of the 1937 CONGRESSIONAL RECORD-HOUSE· 819

strickers and pickets it would be impossible to know which were THE LATE FRA~ GARDNER residents of Flint or of the State of Michigan. In all probability, if the Department attempted to interview such persons, they would Mr. CROWE. Mr. Speaker and Members of the House, it be unwilling voluntarily to furnish their names and places of is with profound sorrow that I announce to the ·House the residence to the Government. . - passing of Judge Frank Gardner, of Scottsburg, Ind., · a Without knowing just how many of the workers are voluntarily out of the plants it would be impossible to estimate the wage former Member of this House. loss to the workers as requested in the proposed resolution. In Mr. Gardner was a Member of the Congress three terms, other words, there are many workers who consider themselves out viz,- the Sixty-eighth, Sixty-ninth, and Seventieth Con­ on strike and it is impossible to distinguish such persons from the gresses. total number who are at the moment without employment. . Data on the number of persons receiving relief are not available in the He represented the old Third Indiana District, the district Department of Labor. The information requested on this point which I had the honor to represent in the Seventy-second could be answered only by the local relief authorities, the State Congress. Mr. Gardner was a lovable, honest, conscientious relief authorities. and the Works Progress Administration. To determine "who desires to return to work" or who bas been gentleman and will be remembered a·s such by many Mem­ prevented from returning to work would be entirely a matter of bers of this House who served with him while he was in· speculation, and the guess of the Department in this matter would Congress. He was a plain, unostentatious gentleman, de- · be no better than those that have been published in the press pendable and ·loyal and ever alert to the interests of his by both sides to the controversy. his It is also clear that this resolution tends to be one-sided since home, district, his State, and ·his Nation: · it proposes an investigation into union activities by asking about It is with deep regret ana profound sorrow that I an­ the relative membership in certain labor organizations (see (d)) nounce to this House the passing of former Congressman and the expenditures and sources of strike funds (see (x), (y), Frank-Gardner. - and (z)), whereas there is nothing in the resolution which is de­ signed to secure information about the activities of employers in EXTENSION OF REMARKS these strikes, particularly to the extent which intimidation has been used. The resolution further makes no provision for securing Mr. ELLENBOGEN. Mr. Speaker, I ask unanimous con-· information about the basic working conditions which underlie sent to.extend my own remarks.in the RECORD and to include the existing industrial difficulty. For a Federal Government to be therein a radio speech which I made yesterday over a na­ required to secure information about the activities of only one of tional hook-up of the Columbia Broadcasting System on the the parties to a dispute would completely destroy its e1Iectiveness as an instrument of mediation and conciliation. subject of low-cost housing and slwn clearance. There seems to be some misapprehension of the part played by The SPEAKER. Is there -objection to the request of the the Federal Government in labor disputes. I refer particularly gentleman from Pennsylvania? to paragraphs (t) and (v), which seem to assume that the De­ There.was no objection. partment of Labor has a regulatory function or is enf.:>rcing statutes which govern the relative rights of the · parties. Neither Mr. LUDLOW. Mr. Speaker, I ask unanimous consent to the Secretary nor the Department of Labor have any juriscUction extend my remarks in the RECORD and to include therein a ' to pass upon the legality of either picketing or the "sit-down" radio address I delivered last night. strike. The action which the Department has taken with respect to these strikes has been purely mediatory pursuant to the act of The SPEAKER. Is there objection to the request of the March 4, 1913, authorizing the Secretary of Labor to serve as a gentleman from Indiana? mediator of labor disputes and to appoint conciliators whenever - There was no objection. in the judgment of the Secretary the interests of industrial peace I so require. · · Mr. SCOTT. Mr. Speaker, ask unanimous consent to . Sincerely yours, extend my remarks in the RECORD and to include therein a FRANCES PERKINS. radio speech I made last night. · Mr. CONNERY. Mr. Speaker, I yield 5 nunutes to the The SPEAKER. Is t~ere objection to the request of the gentleman from Michigan [Mr. HoFFMAN]. gentleman from California? There was no objection. Mr. HOFFMAN. Mr. Speaker, I would like to yield to the gentleman from New York [Mr. REED]. SELECT COMMITTEE ON GOVERNMENT ORGANIZATION , The SPEAKER. The gentleman cannot· do that under the · The SPEAKER .. PUI'Suant to the provisions of.House .Res-. rules. elution 60, as amended by House Resolution 106, the Chair Mr. REED of New York.· Mr. Speaker; will the gentle-· appoints as additional -members of. the Select .Committee -on man from ·Massachusetts ·yield? Government Organization the following: Mr.- MEAD · and Mr. Mr. CONNERY. I yield. KNIFFIN. · Mr. REED of New York. Will not the gentleman from ORDER OF BUSINESS Massachusetts be· so kind as to yield· me about 10 minutes? Mr. RAYBURN: · Mr. Speaker, I ask unanimous consent to· Mr. CONNERY. I did not understand the gentleman proceed for 1 minute. desired time. My understanding ·was ·that I · was to.yield ·a · The SPEAKER. Is there objection to the request of the few minutes to the author of the resolution, the gentleman gentleman from Texas? · from Michigan [Mr. HoFFMAN]. If it is agreeable, I will ' There was no objection. yield ·3 minutes · to - the gentleman from New York [Mr. · Mr. RAYBURN. · For the convenience of the -Members I REED], and 3 minutes to the gentleman from Michigan make this. announcement of the business to be brought up [Mr. HoFFMAN]. within the next few days. After the disposition of the reso- · Mr. SNELL. Mr. Speaker, will the gentleman from Mas- lution offered by the gentleman from Massachusetts [Mr. sachusetts yield? CoNNERY], which will be the unfinished business tomorrow, Mr. CONNERY. _I yield. it is ·intended to devote the remainder of tomorrow and all · Mr. SNELL. If this matter i_s brought up we. certainly ' of Friday to general debate on the reciprocal trade a::,o-ree­ are entitled to some time in which to consider it. This has ment bill, to adjourn· over until Monday, if possible, which been a very busy day. - will be District day, a.nd then on Tuesday to read for amend· The SPEAKER. Let the Chair make a statement. This ment the reciprocal trade agreement bill. This is the pro­ has been a very busy and strenuous day: It was represented gram as far as I know it. · to the Chair that if this matter were allowed to be called LEAVE OF ABSENCE up it would consume at the utmost 5 minutes. Witli that : By unanimous consent, leave of absence was granted as understanding the Chair agreed to recognize the gentleman follows: from Massachusetts, but that was the extent of the agree- To Mr. B.INDERUP (at the request of Mr. LUCKEY of Ne· ment made by the Chair. · braska), indefinitely, on account of illness. If the disposition of this resolution is going to require To Mr. FITZGERALD (at the request of Mr. CITRON), indefi.. additional debate or further consideration the Chair would nitely, on account of illness. prefer to take the matter up tomorrow. This will be the To Mr. JARRETT

CO~TEE ON ~ERSTATE AND FOREIGN CO~ERCE was discharged from the consideration of the bill (H. R; There will be a continuation of the hearing before the 3210) to place Harold Staats, formerly captain, Officers' Committee on Interstate and Foreign Commerce at 10 a.m. Reserve Corps, on the emergency officers' retired list, and the on February 4, 1937, on the long-and-short-haul bill. same was referred to the Committee on Military Affairs.

PUBLIC BILLS AND RESOLUTIONS EXECUTIVE COlmUNICATIONS, ETC. Under clause 3 of rule XXII, public bills and resolutions Under clause 2 of rule XXIV, executive communications were introduced and severally referred as follows: were taken from the Speaker's table and referred as follows: By Mr. LORD: A bill (H. R. 4268) to divest certain activ­ 331. A letter from the chairman, Gorgas Memorial Insti­ ities of their interstate character; to the Committee on tute, transmitting the report covering the work and opera­ Interstate and Foreign Commerce. tion of the Gorgas Memorial Laboratory for the period from By Mr. LEMKE: A bill (H. R. 4269) to provide for a November 1, 1935, to October 31, 1936 (H. Doc. No. 46) ; to useful and comprehensive system for the impounding, stor­ the Com~ttee on Foreign Affairs and ordered to be printed. ing, conserving, and making use of the unappropriated 332. A letter from the Secretary of the Interior, transmit­ waters falling or emanating within the United States, and ting a draft of a proposed bill providing for the repeal of the for other purposes; to the Committee on Flood Control. proviso clause of the act of May 18, 1928 (45 Stat. 603); to By Mr. O'MALLEY: A bill (H. R. 4270) for the better the Committee on the Public Lands. assurance of the protection of persons within the several 333. A letter from the Secretary of Commerce, transmit­ States from mob violence and lynching, and for other pur­ ting a special statistical study made in accordance with the poses; to the Committee on the Judiciary. authority granted under the act of May 27, 1935 (Public, By Mr. MURDOCK of Arizona: A bill (H. R. 4271) to No. 74); to the Committee on Expenditures in the Executive amend the Social Security Act to provide for aid to In­ Departments. dians; to the Committee on Ways and Means. 334. A letter from the Acting Secretary of Agriculture, transmitting the draft of a proposed amendment to the act By Mr. HEALEY: A bill (H. R. 4272) to authorize the approved August 24, 1912 (37 Stat. 487) ; to the Committee purchase and distribution of products of the fishing indus­ on Expenditures in the Executive Departments. try; to the Committee on Agriculture. 335. A letter from the Secretary of the Interior, transmit­ By Mr. GRAY of Pennsylvania: A bill (H. R. 4273) to ting the draft of a bill to amend section 4 of the act of May authorize the refund of amounts deducted from pensions of 31, 1933 (48 Stat. 108), enacted for the purpose of protecting Civil War veterans and the widows and dependents of such the interests and welfare of Indians of the Taos Pueblo, N. veterans by reason of economy legislation; to the Committee. Mex., in certain lands within the Carson National Forest; to on Invalid Pensions. the Committee on Indian Affairs. By Mr. ELLENBOGEN: A bill (H. R. 4274) to provide for 336. A letter from the Secretary of the Interior, transmit­ the completion of the 12-mile- spacing of the horizontal ting a . draft of a proposed bill to accept the cession by the control and the 5-mile spacing of vertical control surveys State of Arkansas of jurisdiction over all lands now or here­ in the State of Pennsylvania; to the Committee on Mer­ after included within the Hot Springs National Park, Ark., chant Marine and Fisheries. and for other purposes; to the Committee on the Public By Mr. IGLESIAS: A bill (H. R. 4275) to correct United Lands. States citizenship status of certain persons born in Puerto Rico, and for other purposes; to the Committee on Insular REPORTS OF COMMITI'EES. ON PUBLIC BILLS AND Affairs. RESOLUTIONS By Mrs. NORTON: A bill (H. R. 4276) to amend an act entitled "An act to create a juvenile court in and for the Under clause 2 of rule XIII, District of Columbia", and for other purposes; to the Com­ Mr. COCHRAN: Committee on Expenditures in the Execu­ mittee on the District of Columbia. tive Departments. House Joint Resolution 131. Joint reso­ By Mr. GREEVER: A bill (H. R. 4277) to provide for the lution for the payment of certain employees of the United extension· of certain prospecting permits, and for other States Government in the District of Columbia and em­ purposes; to the Committee on Mines and Mining. pl.oyees of the District of Columbia for January 20, 1937; By Mr. COFFEE of Washington: A bill CH. R. 4278) to Without amendment CRept. No. 170). Referred to the Com­ regulate the sale of admission tickets in the District of mittee of the Whole House on the state of the Union. Columbia; to the Committee on the District of Columbia. Also, a .bill for the relief of Julia N. Murrell; sanatorium purpose; to the Committee on Indian Affairs. to the Committee on War Claims. By Mr. LESINSKI: A bill (H. R. 4291) to extend further By Mr. -COLE of Maryland: A bill (H. R. 4301) to au­ time for naturalization to alien veterans of the World War thorize the award of a decoration for distingUished service under the act approved May 25, 1932 (47 Stat. 165), to to George J. Frank; to -the Committee on Military Affairs. extend the same privileges .to certain veterans of countries Also, a bill (H. R. 4302) to authorize the Commissioners allied with the United States during the World War, and for of the District of Columbia to reappoint Ralph S. Warner other purposes; to the Committee on Immigration and Nat- in the police department of said District; to the Committee uralization. . on the District of Columbia. By Mr. SCOT!': A bill crease of pension to Maria Graves; to the Committee on the District of Columbia or any Territory of the United Invalid Pensions. States, for the elimination of slums, for the construction of By Mr. DIMOND: A bill (H. R. 4304) for the relief of decent, safe, and sanitary dwellings at low rentals for fam­ Hugh O'Farrell; to the Committee on _Claims. ilies of low income, and for the reduction of unemployment By Mr. DOCKWETI.ER: A bill (H. R. 4305) granting a and the stimulation of business activity, and for other pur­ pension to Beverly A. Foster; to the Committee on Pensions. poses; to the Committee on Ways and lVfeans. Also, a bill (H. R. 4306) granting a pension to William H. By Mr. S:MITH of Virginia: Joint resolution