CONGRESSIONAL RECORD-SENATE October A· to Be Second Lieutenants· a Bill (S

4154 CONGRESSIONAL RECORD-SENATE OcTOBER a· To be second lieutenants· A bill (S. 1806) granting an increase of pension to Minnie T. James V. Bradley, jr. Randall M. Vict~ry. Goodhart (with accompanying papers); George R. Weeks. Paul D. Sherman. A bill (S. 1807) granting an increase of pension to Malinda E. Jolm F. Stamm. Young (with accompanying papers); and POSTMASTERS A bill ( S. 1808) granting an increase of pension to Isabel Combs (with accompanying papers) ; to the Committee on Pen MISSISSIPPI sions. Christopher R. Berry, Benton. By Mr. METCALF: Florence Churchwell, Leakesville. A bill ( S. 1809) granting an increase of pension to Annie E. Willis L. Malley, Merigold. Eddy (with accompanying papers); to the Committee on Pen Birdisue G. Byrd, Mount Olive. sions. John P. Edwards, Ocean Springs. By Mr. HATFIELD: Ben Linn, Pickens. A bill ( S. 1810) granting a pension to Martha Long (with Richard D. Shelby, Rosedale. accompanying papers) ; to the Committee on Pensions. Emma D. Covington, Wiggins. By Mr. McNARY: NORTH CAROLINA A bill ( S. 1811) providing for a study regarding the construc James P. Turnley, Cameron. tion of a highway to connect the northwestern part of the United VERMONT States with British Columbia, Yukon Territory, and Alaska, in cooperation with the Dominion of Canada; to the Committee on Guy R. Garvin, East Barnet. Agriculture and Forestry. John T. Tudhope., North Hero. - By Mr. COPELAND: Florence E. Metcalf, Westminster. A bill (S. 1812) to authorize the collection of annual statistic9· relating to certain public institutions; to the Committee on Com merce. SENATE A bill (S. 1813) granting a pension to Joseph L. Hadden; to THURSDAY, October 3, 19~9 the Committee on Pensions. A bill (S. 1814) for the relief of Timothy Cahill; and {Legislative day of Monday, September 30, 1929) A bill (S. 1815) for the relief of Edward Brooks; to the Com The Senate met at 11 o'clock a. m., on the expiration of the mittee on Naval Affairs. recess. By Mr. SCHALL: . THE JOURNAL A bill (S. 1816) to extend the times for commencing and completing the construction of a bridge across the Mississippi Mr. JONES. Mr. President, I ask unanimous consent that River at or near Wabasha, Minn.; to the Committee on Com the Journal for the calendar days of Monday, September 30, merce. Tuesday, October 1, and Wednesday, October 2, may be approved. The VICE PRESIDENT. Without objection, it is so ordered. PROPOSED RECOMMI'ITAL OF TARIFF BILL WITH INSTRUCTIONS CALL OF THE ROLL Mr. THOMAS of Oklahoma gave notice of the following mO· Mr. FESS. Mr. President, I suggest the absence of a quorum. tion intended to be made by him : The VICE PRESIDENT. The clerk will call the roll. I move that the bill (H. R. 2667) to provide revenue, to regulate The legislative clerk called the roll, and the following Sena~ors commerce with foreign countries, to encourage the industries of the answered to their names : United States, to protect American labor, and for other purposes, be re· Allen Frazier King Smith committed to the Committee on Finance with instructions to eliminate Ashurst George La Follette Smoot therefrom the following-described text : Barkley Gillett McKellar Steck Bingham Glass McMaster Steiwer Beginning with line 5, on page 2, and i.ncluding line 4, on page 121, Black Glenn McNary Stephens and beginning with line 9, on page 146, and including line 23, on page Blaine Goff Metcalf Swanson 279 : Provided, That the elimination of such text shall be without preju. Blease Goldsborough Moses Thomas, Idaho llorah . Gould Norris 1:homas, Okla. dice to the submission in the Senate of specillc amendments to existing Bratton Greene Nye Townsend law : And provided further, That when the consideration ot said bill is Brookhart Hale Oddie Trammell completed in the Senate and before final passage, said Finance Committee Broussard Harris Overman Tydings Capper Harrison Patterson Vandenberg is hereby authorized and requested to amend section 648, relating to Caraway Hastings Phipps Wagner repeals, so as to make said section conform to the action of the Connally Hatfield Pine Walcott Senate. Copeland Hawes Pittman Walsh, Mass. Couzens Hayden Ransdell Walsh, Mont. REVISION OF THE TABJFF Cutting Hebert Reed Warren Dale Heflin Robinson, Ark. Waterman The SE:'nate, as in Committee of the Whole, resumed the con Dene(::n Howell Robinson, Ind. Watson sideration of the bill (H. R. 2667) to provide revenue, to regu Dill Johnson Schall Wheeler Edge Jones Sheppard late commerce with foreign countries, to encourage the indus Fess Kendrick Shortridge ~~~~ed~-~~~~~~~~~~ Fletcher Keyes Simmons other purposes. Mr. FESS. My colleague the junior Senator from Ohio [Mr. Mr. SMOOT. Mr. President, before beginning consideration BURTON] is still detained from the Senate by illness. I ask of the conversion provision, section 340, page 335, there are that this statement may stand for the day. three minor amendments which I wish to have made. I am Mr. SCHALL. My colleague the senior Senator from Minne quite sure they wUl lead to no discussion. They are to correct sota [Mr. SHIPSTEAD] is still detained from the Senate by illness. mistakes made by the printer or by the clerk of the committee in I ask that this announcement may stand for the day. sending the material down for printing. . The VICE PRESIDENT. Eighty-nine Senators have an On page 336, line 19, the word "importation " should be swered to their names. A quorum is present. "exportation." I ask that that change be made so it will read "at the time of exportation of the imported merchandise," in BILLS INTRODUCED stead of" at the time of importation." Bills were introduced, read the first time, and, by unanimous The VICE PRESIDENT. Without objection, the correction consent, the second time, and referred as follows: will be made. By Mr. McKELLAR: l\1r. SMOOT. On page 337, in lines 9 and 10, the word "in" A bill ( S. 1798) for the relief of Alice M. A. Damm (with ac is used twice. I ask that the word "in" at the beginning of companying papers); to the pommittee on Foreign Relations. line 10 be stricken out. Byl\!r. REED: The VICE PRESIDENT. Without objection, the correction A bill (S. 1799) to authorize the payment of interest on funds will be made. of the United States Soldiers' Home; to the Committee on Mili 1\.fr. SMOOT. The next amendment is on page 342, line 13, tary Affair . where I ask to have a similar change made by striking out the By Mr. ROBINSON of Indiana: word "importation " and inserting the word " exportation," so A bill (S. 1800) granting a pension to Elizabeth Huron; it will read "at the time of exportation of the imported A bill (S. 1801) granting a pension to Enoch Davis Young; merchandise." A bill ( S. 1802) granting a pension to Catherine Brock; The VICE PRESIDENT. Without objection, the amendment A bill ( S. 1803) granting a pension to Emma Knight; is agreed to. A bill ( S. 1804) granting a pension to Daisy Childres; Mr. SMOOT. As agreed last eyening, I ask that the Senate A bill (S. 1805) granting an increase of pension to Josephine now consider the amendment· on page 335, being section 340, Simpson (with accompanying papers); " Domestic Yalue--Con ersion of rates.'' CONGRESSIONAL RECORD-SENATE 4155 The VICE PRESIDENT. The clerk will report the amend The House provided-section 642-for an investigation by the ment for the information of the Senate. President, through such agencies as he might designate or ap The LEGISLATIVE CLERK. On page 335, after line 10, insert point, of bases for valuation of imported merchandise, with a the following new section : view to determining the advisability of using domestic values, and for a report back to the Congress. Inasmuch as the com SEC. 340. Domestic value-Conversion of rates : (a) Conversion of mittee believes that a domestic-value basis is proper, it believes rates by commission: The commission shall ascertain, with respect to that such an investigation by the President is unnecessary, and each of the ad valorem rates of duty and each of the rates of duty has accordingly stricken the House provision from the bill. regulated by the value of the article specified in this act, an ad valorem It will be noted that the definition of "domestic value" in sec rate (or a rate regulated by the value of the article, as the case may tion 340 is substantially the same as the definition of " United be) which if applied upon the basis of domestic value would have States value" in section 402 (d) of the bill as reported to the resulted as nearly as possible in the i.inposition, during the p~riod from Senate, except that in the former n{) deductions are made for July 1, 1927, to June 30, 1929, both dates inclusive, of amounts of duty transportation costs, commissions, profits, duty, and other ex neither greater nor less than would have been collectible at the rate penses and costs. It is believed' that the elimination of these specified in this act applied upon the basis of value defined in section deductions will greatly simplify administration. Obviously, if 402 of the tariif act of 1922. the conversion is properly made, the elimination of the deduc (b) Report to Congress by commission: The commission shall, as tions will not result in any change in the amount of duty to soon as practicable, but in "no event later than January 1, 1932, sub be collected. mit a report to the Congress setting forth the cl'asses of articles with It will also be noted that the defining of the term " rate of respect to which the conversion of rates has been made, together with duty regulated by the value of the article" to mean a rate of the converted rates applicable thereto. . duty regulated in any manner by the value of the article and {c) Data to be furnished by Secretary of Treasury and Secretary of to include the value classification by which such rate is regu Commerce : To assist the commission in carrying out the provisions of lated, will comprehend, in addition to straight ad valorem rates, this section, the Secretary of the Treasury and the Secretary of Com any rate of duty on an ad valorem basis. That is, it will include merce are authorized and directed to furnish to the commission, upon the so-called bracketed rates by which the rate increases or request, any data or information in the possession or control of their decreases as the value of the article increases or decreases. r~pective departments relating to the importation, entry, appraisement, Obviously, the value classification by which the rate is regu and classification of merchandise and the collection of duties thereon. lated must be converted in order to continue the classification (d) Definitions: When used in this section- brackets set out in the present bill. (1) The term "domestic value," applied with respect to imported Mr. President, I also call the attention of the Senate to the merchandise, means report of the committee as it relates to this section of the pend (a) The price at which such or similar imported merchandise is ing bill. What ] have stated, I think, covers the principal freely offered for sale at the time of exportation of the imported mer thought and the ideas of the majority of the committee in pro chandise, packed ready for delivery, in the principal market of the posing this change in the law. It is impossible to make such United States to all purchasers in the usual wholesale quantities and a change witllout a thorough investigation, as otherwise no one in the ordinary course of trade, or could with certainty tell what a particular rate· should be. If (b) If such or similar imported merchandise is not so offered for sale the present rate of duty were 50 per cent, and under American in the United States, then an estimated value, based on the price at value of the article in the United States conditions were such which merchandise, whether imported or domestic, comparable in con as to indicate that a duty of 25 per cent should be levied, no one struction or use with the imported merchandise, is so offered for. sale, would be prepared at the present time to say that that would with such adjustments as may be necessary owing to ditferences in or would not be the proper rate of duty. In the past I have size, material, construction, texture, and other differences. · always been opposed to enacting a tariff bill the rates of which {2) The term "rate of duty regulated by the value of the article •• were based upon American valuation. I knew the information means a rate of duty regulated in any manner by the value of the which we had was not sufficient to enable us to provide a proper article, and includes the value classification by which such rate is rate; the rate fixed might be too low or it might be too high; but regulated. after the Tariff Commission shall have made the investjgation Mr. SMOOT. Mr. President, it has been urged upon the Con provided for, and shall report to us in 1932, even if Congress gress repeatedly that the basis upon which the value of im shall not finally decide to make the change, we shall have infor ported merchandise is appraised should be changed. However, mation that we never before have had, information which I each tariff act has retained the foreign-value basis, primarily, have always desired to obtain, but which no one individual can it is believed, because of the fact that adequate information has obtain. Reliable information on the subject can only be s~ured not been available for proper conversion to a domestic value through an agency of the Government of the United States. basis. It is also believed that many of the proposals were mis l\1r. WALSH of Montana. Mr. President-- understood and thought to be disguised efforts to obtain in The VIO:ID PRESIDENT. Does the Senator from Utah yield creased duties on imported merchandise. An additional objec to the Senator from Montana? tion, from an administrative standpoint, has been the fact that Mr. SMOOT. I yield. . every proposal heretofore made for changing the basis has Mr. WALSH of Montana. I should like to ask the Senator if contemplated an immediate change in all schedules, without ade I am correct in assuming that the provisions now being r or not we wanted to make that charige. If we decided particularly the staple goods, have a market quotation. They to make the change, then we woul'd go tQ the vast expense in are quoted here. Anybody can ~ee the price. There is no volved in making the conversion ; but if we should make a con guessing about it at all version it would be useless a year from now, or two years from Mr. NORRIS. The thing I am trying to get is, if we had now, and we would again have to go thr(}Ugh the whole process this kind of a law, a means of comparing the method we would of ascertaining the facts and figures. then pursue with the method that we necessarily have to pur Mr. SMOOT. No, Mr. President; it certainly W{)Uld not be sue under existing law, to see, if I can, which is the more prac useless. The changes are not such that the information gath tical. I can. see that the method pursued under existing law ered between now and 1932 would be useless if we undertook would very often be very unsatisfactory, and I think unfair, to change _ ~e basis (}f _valuation after th~t repo~ w~ ~eceived. because we w:ould col~ect ~ ~ duty O!! !l:D ~mcle coiDi,ng CONGRESSIONAL RECORD-SEN ATE 4157 from one country and a different duty on a similar article Europe uses this domestic-value basis. If we export a motor car coming from anothe1· counh·y. to Franee the duty on it is 33% per cent, I think, not on the :Mr. REED. Mr. President, will the Senator yield to me! value here, not on the value in Detroit or New York, but on the The VICE PRESIDENT. Does the Senator from Utah yield value of that motor car as it rests on the pier in France; and to the Senator from Pennsylvania! it is very easy for them to determine that value, and very easy Mr. SMOOT. In just a moment; I want to call attention to to assess the duty. If we send a motor car to Great Britain, another matter. If it were a question of the Amer:ican value, where the duty on it is 25 per cent, as I recall, it is on the we would have power to compel the manufacturers to show their value of the motor car on the pier at Liverpool, not on its books. value in Detroit or New York. Mr. NORRIS. Yes. Mr. McMASTER. Mr. President-- Mr. SMOOT. To-day, in a foreign country-for instance, in The VICE PRESIDENT. Does the Senator from Pennsyl- France and some of the other countries-they will not allow vania yield to the Senator from South Dakota! an attache from the Customs Service to make an investigation Mr. REED. I do. of the cost of an article in the foreign country. Some of the Mr. McMASTER. Do I understand the Senator from Penn- other countries will not allow our men to make those investiga- sylvania to say that crepe silk is made in China, Japan, and tions ; and even where they are allowed to make them they· are France! limited in extent, and our men have to arrive at the pl'ice in Mr. REED. Principally in Japan. the very best way they can. Mr. McMASTER. Is it manufactured in the United States Mr. REED. Mr. President, I think the Senator from Ne- at all! braska has put his finger on the sore point in the present system. M REED At the present time the law provides that the ad valorem duty r. · Yes. shall be based upon the foreign value, or, if there is no demon- :~: :~~~~T~~: It is manufactured in both places? strable foreign value, then upon the export value, both of those Mr. McMASTER. When we take the example of watches, in the foreign country; and, if that can not be ascertained, then upon a sort of reconstructed foreign value which we call United where a cert~in type of watch is _manll;factured in a fo~eign States selling price, ·which takes the value of the article here coun~ry but 18 not _manu.:,actured. m this country~that 1s, a and subtracts from it the duty, and the cost of transportation, ?ertam ~ype-do article? 0.1. that kmd present pecuhar problems and allowances for 8 per cent of importer's profit, and another \ m Amenca along t~at line? allowance for importer's overhead, and what not, and in a rough . Mr. REED. No • an~ I am glad the .senator asks t~at qu~s way tries to reconstruct the foreign value; but practically all bon, beca~se that .reml?ds me to e:x:plam on~ of. the difficulties of the imports that are taxed by ad valorem duties are assessed that have mhered m this m~tte~ from the _begmnmg: at either their supposed foreign value or their supposed export Fo~ years we .had an agitatwn for usmg ~ basis known a.s value in the foreign country. Amencan v~~uati?n. That n~.eant the valuatwn of the Amen- That is open to three grave objections. In the first place can-made article m. the Amer~can If:larket. In .other words, we there is the obvious opportunity for the importer to defraud the would tax the foreigner. on his ~rticl~ a c~rtam percentage of Government by using " fake " invoices. Most of us who have the :value of the Amencan artr~le m th1s market. It can traveled abroad since the war have again and again had the readily be seen t~at that was unfatr. It was not a tax assessed experience of being offered two sets of invoices by the people on the value of. his pro~erty at all.. It wa~ assessed on the va~ue from whom we buy articles that we intend to bring back to the of some Amencan article here Whlch nnght have a very high United States. It . is quite common,. and it is not considered cost . . . commercially dishonest by the people abroad to do that. That When the Hou~e ~dopted that. Amer1can~value Idea m 19~ is trivial, of course, in the sum total of its effect when we the Senat~ un.J:~esitatingly threw It o~t, saying .that the Amen apply it to travelers' baggage, but when it is applied to vast can,-valuahon Idea was wholly .unf8ll'. That IS what .we are imports of articles that come from the Orient, let us say, we tr:png _to ge~ away from here, m what we call domestic valu find that it is practically an utter impossibility to find out the ation. m this ame~dment. We take, ~ot the value of the foreign value of the stuff that some Chinaman sells up the Amencan-IJ?-ade art~cle, ~ut th~ va11:1e m. the first w~oles!lle Yangtse River. They do not keep their books the way we do; ma;ket here of the Id~nhcal article on whiCh the duty IS bemg they do not keep their records as we do; they send over invoices leyi~. In other. wor~, w~ g~t away_ ~rom; the. fundazp.ental that we can not check against; and there is, we are convinced flaw m the Aif:1erican:val?ahon 1dea, and continue to a!3sess our. and the Treasury is convinced, a very considerable amount of tax on the article which. 1S taxe~. . fraudulent undervaluation. Mr. KING. Mr. President, will the Senator yield! That is one reason for a change, if it can be done with Mr. REED.· I yield. . · · . · · justice. ~r. KI~G. I h.ope the .senato~ will. ~a1;don ~e when I .ask Another one is that the present system operates to discrimi- this q~estiOn.. It IS not With .~ v.1ew of 1mpugnmg the motives nate in favor of the countries with the lowest labor costs of the committee at all, but IS not really the purpose of this Take silk crepe, for example: ~hat js made in France, and it i~ amendment-not the. Senator's purpose, o~ c~urse, but the pur- · made in Japan.and China, and it is taxed on a percentage of its P?S~ of Mr. ~rundy, , of_Mr. Lex:ch, and_of Mr. Bu~gess, who are . value abroad. France, which has a higher wage scale and, . sitting ~ow m -~~_gallery, a~d o~ those ~ha have be~n for. year.s . naturally, higher production costs, has- a higher foreign value the proponents. of this jdea-to. establish the .American selling . on her crepe per meter, per yard, than has Japan. price, not _the American valuation but the American selling Mr. NORRIS. And she is penalized on that account. . price, rather than a fair valuation, foreign valuation, based Mr. REED. And she is penalized for paying those high wages upon .the determin~tion of that value by applying proper rules and having the high cost. We make the discrimination doubly here m the domestic market! bad by taxing the French crepe higher thaJ+ we tax the identical Mr. REED. I am glad the Senator asked that question. Let article coming from Japan; so that, without meaning to do so• . me explain. the three definitiQns which one _has to bear in mind we have discriminated against the nation that can .stand it ~ discussing this, _because, lik~ _al! other things that have been . least. . discussed for a long time, particular , terms come . to take on Then there is the difficulty of proving these foreign values me~nings that are p.o_t self-explJ~,natory~ ...... - ·. . . . · ·. because of the inaccessibility of the evidence by which it would . I have ttied _to show .what American valuation is. . That. be proved. If we used domestic value, we would . have the . means using the American .valuation of -the American-m"ade , power to subprena the importer and . his books, and to prove . ~rticle~ I think everybody is agreed that that is· a false system. beyond a doubt just what the value of that article was in the We .will .disregard that, then. _...... primary wholesale market here. When, however, we are trying The next is United States selling price; and that phrase is to get a foreign value, every vestige of evidence that proves it is defined. in the act, .by the way. . It :will be found in section in a foreign country, out of reach of, the process of our courts; 402 (d),. but .in substance it me&ns tt.e seUing price ,here of the -. and we are simply approaching those producers there, hat in forejgn article, from which . has been _subtracted . an allowance . hand, and begging them as a favor to,give us some shred of for irpporter's profit and importer's over:head, _duty, transporta information, usually in the form of an ex. parte affidavit; tion, insurance, and what not, until we have a kind of a recon whereas if we had used the domestic value we would not need structed fqreign price. to ask favors of anybody, but would simply sub~na the man's That is a needless thing. There is no use going to all that books, and there we would have clear evidence. elaborate calculation, because we do not get true forei.gn valua- Those are the considerations that have led other .countries to tion after· we have done it, and we do not get true American ad o ~t a.omestic value as the basis for their ad valorem duties. valuation. It is a needlessly complicated, false basis. The Tariff Commission had made up a list-which I can not When our hearing started on the administrative provisions, . find among my papers, but which I will put in the RECORD as Mr. Lerch-and I think be spoke for Mr. Grundy--came before soon as I do find it-showing in substance that every country of. us with a proposition to use the American selling price as ?ue 4158 - CONGRESS! ON AL RECORD-SEN ATE OcTOBER 3 basis for all of the duties, and Mr. Lerch was a little blt section 402 wiped out entirely. It is needlessly complicated, . hesitant about admitting, in answer to my question, that that arbitrary and unfair in many cases, and the time will come would be an indirect way of raising the duties. Finally he when it can be wiped out and thi.s section we are discussing did admit that it might raise them, and that some of them is the first step to that ena.1 might have to be reduced. If, as the Senator suggests, this is part of some scheme on That was the trouble with his suggestion, and it has been the the part of the manufacturers to raise the duty, it i.s a singu trouble '\'6th all these proposals for bringing the basis of assess larly stupid way of going about it, because the instructions to ment hom'e. to this country, that in one way or another they the Tariff Commission contemplate such a lowering of all the were purposely or accidentally disguised ways of raising duties, percentages as will yield the same revenue as is ~elded by the and that was why the Congress has always hesitated to adopt it. percentages .adopted by Congress. If it is a conspiracy, it is It is self-evident that, in justice, when we change the basis a very stupid one, because we are pointing out to Congress, to a higher market value, we should at the same moment re when we come next to legislate on this subject, that very much duce the percentage of the tax. Otherwise we ~e simply rais lower rates will be all that will be necessary to accomplish . ing the tax. what never is accomplished by the compe.ratively high rates of That is what I believe in all sincerity the committee amend the present law. ment does. It instructs the Tariff Commission to make the Mr. BLACK. Mr. President-- conversion, to use the basis of the wholesale selling price of The PRESIDING OFFICER (Mr. FEBs in the chair). Does the imported article in the first wholesale market it reaches, the Senator from Pennsylvania yield to the Senator from and to make the conversion by such changes of percentage as Alabama? will yield the same revenue from the same article. Mr. REED. I yield. I believe the net result of it will be a slight increase in Mr. BLACK. As I understand th.iS amendment, the Tariif revenue, because of the fact that it will at once cut out all Commission will go over the entire liBt of t:ari:tr-protected undervaluations; but excepting for that, I do not think the prre artlcles-- ess, if it is honestly followed-and we can depend on the Tariff Mr. REED. That is right. Commission to do that-will result in a rise in the revenue Mr. BLACK. In an effort to make the transfer or the con from this tariff. Of course, the Congress will have the whole version which the Senator has defined. Is that correct? matter within its control when the report comes in. Mr. REED. That is correct. Mr. KING. Mr. President, will the Senator yield further? Mr. BLACK. All that would do, as I under8tand it-and I Mr. REED. May I say just another word before yielding? am asking for information-would be to give tis the mathemati Mr. KING. Certainly. cal result of the changed situation. Mr. REED. I think it can truthfully be said that this idea, Mr. REED. That is correct. if carried out, will not result in the payment of one additional Mr. BLACK. So that if we preferred the domestic valuation penny by the honest importer, and I believe that importers, like system, we could change to-day by working out that mathemati the rest of mankind, are mostly honest. The honest importer cal problem. would not have to pay an additional penny. The dishonest im Mr. REED. We could, Mr. President, but one of our troubles porter would find it more difficult to cheat. has been that Congress has not the time or the facilities to do Now I yield to the Senator. it accurately, and there would be grave suspicion of the results Mr. KING. Mr. President, of course I respect the sincerity we would reach if we should try to do it in our haste. of my dear friend from Pennsylvania, and the object he is so Mr. BLACK. I think that is correct. desirous of accomplishing, but I find ·myself in entire disagree Mr. REED. I think we are all agreed on that. ment with the conclusions which he reaches. Mr. BLACK. Would it not necessarily bring about in 1932 I believe that back of this plan lies the scheme of the a complete revision of the tariff system? How could it be American manufacturer to obtain a complete monopoly of the avoided? If a report were made, and we began on one item or domestic market, and to cut off all importations. Our importa one series of items, how could we avoid taking up the entire tions of manufactured goods are negligible. I say that in view tariff system? of the very large number of commodities which are imported, Mr. REED. We could avoid it by ignoring the report, as we of from one-thousandth of 1 per cent up to 10 per cent. do so many reports; but if we took it up at all, we would have :Mr. REED. I think the figures of manufactured articles to correct the rates all through the law. show the imports to be something like a billion seven hundred Mr. BLACK. Then, of course, we could follow or need not million. follow the report of the Tariff Commission. Mr. KING. No; the Senator is mistaken, I think. Mr. REED. Absolutely. Either House could decline to fol :Mr. REED. I am speaking from memory; I do not remember low it, or the President could, for that matter. the exact figures. · 1\lr. BLACK. Personally, I can see many advantages in the :Mr. KING. Outside of a few large articles-~d I shall domestic valuation idea, if it does not result in the situation refer to them later when I address the Senate-! think the which has been pictured. I do not mean to say that in my importations of really competitive articles amount to about judgment domestic valuation has all the arguments on its side, $500,000,000. But that is not the point I was coming to. but there are certainly many forcible arguments for it. It seems Mr. REED. If the Senator will allow me to clear up the to me that the inevitable re ult of having a report made would doubt before we pass on to something else-- be simply to give us the mathematical figures, and the first Mr. KING. I am familiar with the figures; but I have no thing to decide is, do we want to change the system? It seems · objection to me that in this debate that que tion should be fully dis Mr. REED. I find that the ·imports of manufactures were cussed, so that those of us who are not as familiar as we would $1,669,000,000 in the year 1928, the articles consisting of semi like to be with the two systems, could determine the question. manufactured products, amounting to $762,000,000, and of fin Mr. REED. I think the Senator is .exactly right, and that is ished manufactured products, amounting to $906,000,000. So why I spoke briefly, I think before the Senator came in, about my statement that it amounted "to $1,700,000,000 was not very the reasons why we should follow the example of practically far wrong, after all. every other civilized country. Mr. KING. I will analyze those figures a little later, and :Mr. BLACK. I was here. show the Senator that the importations of competitive manu :Mr. REED. I think that Canada and Australia are the only factured articles were far below the figures stated by the two important countries which follow the same system we are Senator. · now following, of using the foreign valuation. I believe I am May I complete what I rose to interrogate the Senator about? correct when I say that every European country, and most of Mr. REED. Surely. the South American countries, follow the domestic-value idea. Mr. KING. The Senator has called attention to section 402, That is one reason, I may say in pa sing, why their tariffs and to one of its subdivisions, which is an attempt to define sometimes seem lower than ours. They base them on the value United States value. The Senator will recall that the-re is a of the article after it has arrived, and consequently can get an subdivision of one of the subdivisions under the figure "2." idea of the same amount of money in revenue by using an That subdivision, under the provisions of the bill, I submit apparently lower percentage. means an attempt to construct foreign value based upon the Let me give an illustration of that. If we taxed a Ford American selling price. It will inevitably result in that for the automobile on its value in Detroit, and put on the 33 per cent major part of the articles which· will be investigated. and the tax which France is now levying, we would get very much less prices of which will be determined. revenue than -we get when we tax it at its value. Mr. REED. Ah, but if the Senator will read this amendment, They put a 33 per cent tax on the value of that motor car as he will discover that the idea is that some day this is going to it stands on the pier at Havre a.nd to get that same revenue on take the place of all of section 402. Of course, Congress will the basis we have been using in this country we would have to have ttl net before that can be done. But I would like to see impose a 50 per cent duty. That is one reason why some of 1929 CONGRESSIONAL RECORD-_SEN ATE 4159 those countries seem to have lower tariff schedules when in order to yield the same revenue justly we would have to reduce fact they get just as much money per unit as we are getting. the 30 per cent to 11.5 per cent, so the tax then would be 6 Mr. BLACK. It seems to me the main question in this con cents a pound and 11.5 per cent ad valorem. troversy is, first, of course, do we want a change? Next, experi Mr. NORRIS. Mr. President, will the Senator yield? ence in tariff legislation shows that the tariff is frequently Mr. REED. Gladly. • raised, but seldom lowered. With a provision of this kind, with Mr. NORRIS. What would the Tariff Commission do if it a great presumption in its favor, the chances are 99 out of 100 were converting the rate on silk which the Senator mentioned that after report was made there would not be only a demand a while ago which is imported from China' and also from for tariff revision but there would be a taiiff revision. If the France? How would we fix the foreign value in a case of that experience of the country is to be taken as any goyerning guide kind? we could also look forward to the fact that we would not adhere Mr. REED. We would have to take the weighted average of to the schedules reported on the conversiQn of rates, but the all the silk of that quality that comes into the United States. practical undoubted result would be a general raising of tariff' Mr. NORRIS. From the different countries? rates in 1932. That is the situation which it seems to me con Mr. REED. Yes. If there are 5 yards coming from Ohina fronts us at this time on the pending amendment. worth a dollar a yard and 10 yards coming frQm France worth Mr. HEED. If we are going to raise the tariff I do not be $2 a yard, we would have $25 worth of silk coming in and it lieve we will be much accelerated by SQme report from a tariff would constitute 15 yards. We would simply divide the $25 by CQmmission or that we would be very much retarded by any such 15 and strike the average. I can not think of any other fair report. way to do it. Mr. BLACK. We ought not to be. Mr. EDGE and Mr. KING addressed the Ohair. Mr. REED. If we are going to start on any such pQlicy as The PRESIDING OFFICER. Does the Senator from Penn that, nothing is likely tQ stQp us; but I do not think it is going sylvania yield; and if so, to whom? to happen. Mr. REED. I yield first to the Senator from New Jersey. Furthermore let me show the Senator how this will work out. Mr. EDGE. A few moments ago the Senator quoted, from a I may say, and I know Senators will believe me when I say it, report which I have in my possession, the amount of imported that this amendment was spontaneous with Finance Committee manufactured articles in the year 1~28. There seemed to be members themselves. some question as to its accuracy. In order that the record may Mr. KING. The Republican members. be complete I wish merely to suggest that the report has been received from the Department o~ Commerce upon my request, Mr. H.EED. Yes. No witness urged it. So far as I know, no under date of September 28 of thiS year. human eye saw it outside of that committee and the legislative Mr. REED. I am now glad to yield to the Senator from Utah. drafting coun. el. It was written by the legislative drafting :Mr. KING. The Senator has indicated that in order to work counsel at our request. It was not put intQ words by any of us. out this formula it would be imposs~ble to praceed except upon We gave them the idea that we wanted to attain and said," Now, weighted averages. The Senator will remember the testimony put it in words"; and until the day that it was passed upon of various witnesses, including the tariff commissioners, in the by the majority members of the committee and recommended investigation conducted by the Robinson committee, of whirh there in the committee action I do not believe any manufacturer the Senator was a member, and the -contention then made by or importer saw it. I trust the drafting counsel, and I know some of the commissioners that as between the bulk-line basis they did not show it to anyone. No member of the committee and the weighted average as a basis for determining values had a copy of it that he could show; so it is a committee amend there was some difficulty in deeiding which was just, but which ment in the tr.Iest sense. ever was adopted there would be injustices and inaccuracies. 1\lr. KING. Mr. President-- . Obviously that must be the case. If the Senator admits the The PRESIDING OFJi"'ICER. Does the SenatQr from Penn only basis is to take the weighted averages, confessedly we sylvania yield to the Senator from Utah? start out with an inaccurate basis, and one which will work Mr. REED. I yield. very great injustice in some cases. Mr. KING. Perhaps the germ of the thought, however, was Mr. REED. That is true of every law we enact. A law is embodied in the recommendations which were made by Mr. the general rule of action and bound to work hardships in the Lerch and by others, and also in the amendment which was extreme cases. · offered in the House and to which reference was made by the Mr. SMOOT. Mr. President, will the Senator yield? Senntor from Montana [Mr. WALSH] a few moments ago. Also The PRESIDING OFFIOER. Does the Senator from Penn the germ was found in questions which were propounded by sylvania yield to the senior Senator from Utah? the Senator from Pennsylvania to Mr. Lerch and others when Mr. REED. I yield. upon the stand, when they spoke about the question of con Mr. SMOOT. Taking the silk case referred to by the Senator version and Mr. Lerch said that by the conversion there would from Pennsylvania, as I understand it, if the silk comes from be a reduction of only 1 per cent. Japan the prices at which the silk is sold in the United States M'r. REED. I did not agree with that statement. I did not would be the basis for the tariff to be fixed on the American agree with what Mr. Lerch said. It was the outcome of our valuation. The prices at which the silk sold would not be the realization of what seemed to us to be obvious defects and not same all the time. Mr. Lerch's suggestion that led us to propose it. When we did Mr. REED. Of course, if there are different kinds of silk suggest it I took the liberty of asking the chairman of the Tariff that is another matter. Commission to try it out in the two or three weeks that were Mr. NORRIS. Manifestly we could not have two rates on available to see what his beads of divisions could do in the way the same kind of product merely because they came from dif of making conversion. He came back to me with a mime<> ferent countries. graphed sheet, as to which he said, "Of course, it is only tenta Mr. SMOOT. I was speaking of the different silks. I would tive ; but I think it is within 1 per cent of right in each case." not want any misunderstanding about it merely because it I find to my amazement that in that short space of time they might be shown that there would be a larger percentage of tax had done nearly all the job. Of course this is not final. It on silks from Japan than on silks from France. would have to be checked and counterchecked most carefully Mr. REED. Of course, if the articles are identical the tariff before they would put the authority of the commission behind has to be the same, wherever the articles come from. it, but at least it is enough to illustrate the process. Mr. SMOOT. Yes; if they are the same. Let me take the first one, for example, Schedule I, chemicals, Mr. NORRIS. The case I put assumed that they are the oils, and paints. In paragraph No. 1 is the item stearic acid. same. The unit of quantity is 1 pound. The rate of duty fixed is Mr. REED. I think they make the same kind of silk in the 25 per cent. The foreign unit value per pound was 1L3 cents. two countries. . That same acid when it gets to the United States and sells here Mr. McMASTER. Mr. President, will the Senator from Penn at wholesale is worth 14.5 cents per pound. If we change to sylvania yield to me to allow me to make an inquiry of the the domestic value on that article we would at once in fairness Senator from Utah? reduce the duty from 25 per cent to 19.52 per cent. Senators Mr. REED. Certainly. will readily see that that would yield the same revenue, impose Mr. McMASTER. With reference to individual amendments the same tax, merely using the more convenient domestic basis. to the bill, what is the understanding of the chairman of the In the second paragraph comes a chemical called butyralde committee? Of course, the usual ru1e followed is first to dis hyde. The foreign value of that acid is 21.5 cents a pound. Its pose of aU committee amendments. My question is with refer value in the wholesale market here is 55.8 cents per pound. ence to individual amendments. Are they to be considered The tax under the bill, as under the old law, is 6 cents per afterwards? pound plus 30 per cent af valorem. To make the conversion in Mr. SMOOT. Yes. .4160 CONGRESSIONAL RECORD-SEN ATE OcTOBER a= 1\Ir. McMASTER. When we come to the different schedules Mr. REED. There again it wtll be necessary to use the is it the intent of the chairman of the committee that the par process of averaging, because that, after all, is what a basket ticular schedule shall be finished while we are on it? clause does, in the first place. Mr. SMOOT. I am in hopes that plan will be carried out. Mr. GEORGE. Let me call the Senator's attention to q. Mr. Mcl\1ASTER. But no unanimous-consent agreement has specific paragraph, which is not a basket clause, being sectlozil yet been obtained for it? ' 411. Mr. SMOOT. No. The unanimous-consent agreement was Mr. REED. What products does that cover? that we would consider committee amendments first. That is Mr. GEORGE. I refer specifically to the item in paragraph the only unanimous consent that has been granted. I hope that 411 which covers- will 1 when we take up the schedules we begin with No. and Furniture, wholly or partly finished, and parts thereof, • • • proceed with it to the end. There may be an amendment in all the foregoing, wholly or in chief value of wood, and not specially Schedule 1 that would necessarily affect an article in Schedule provided for, 40 per cent ad valorem. 4 or Schedule 5, as the case may be. In that event perhaps I would ask unanimous consent that it be considered at the time Mr. REED. That would not be very difficult, Mr. President. j the article was being considered, so that we would not have to go We would look to see bow many dollars of imports came in at over all the discussion again. the foreign value. I do not find paragraph 4ll in the old law. I Mr. McMASTER. Then, in reference to the adoption of the I presume it is a new paragraph in the pending House bill. 1 administrative provisions, all individual amendments to any Mr. GEORGE. There is a change in the number, I should • section will be permissible after all the committee am€'.ndments have stated that paragraph 4ll in the bill as reported is para have been agreed to or disposed of? graph 413 in the House bill. Mr. SMOOT. That would be carrying out the unanimous Mr. REED. We know the total value on the foreign basis of consent agreement already entered. all the products that come in under each of the basket clauses Mr. SIMMONS. Mr. President-- of the bilt Assuming that the rate is 40 per cent on a par The PRESIDING OFFICER. Does the Senator from Penn ticular basket clause, we know the value on the arrival of those sylvania yield to the Senator from North Carolina? articles; that is ascertainable. We have got to cut down that: Mr. REED. I am glad to yield. 40 per cent so that the same quantity of articles will yield the Mr. SIMMONS. I do not desire to unduly interrupt the Sen same amount of dollars. Necessarily that will mean averaging, ator. I merely want to ask the Senator from Pennsylvania one because all products will not rise to the same extent between the 1 question. The basis of the conversion is that the rate fixed foreign market and the American market. by the Congress when adjusted to American ·valuation shall be Mr. GEORGE. Exactly. Now let us see if we can reach a, so fixed as to provide the same amount of revenue to the Gov common basis. The principal factors in the laid-down cost of ernment. any article necessarily are, first, the foreign cost ; second, the 1 Mr. REED. Yes, Mr. President. transportation cost; third, the duty; and then there would be Mr. SIMMONS. It is based on that? others, such as profits. Mr. REED. But the Tariff Commiseion shall make their re Now, take the case of finished furniture, which is dutiable at port to Congress ; they will have no right to change the rate. 40 per cent. .On cheap, bulky furniture the transportation rate Mr. SIMMONS. I understand all that. That is the basis of would be high, relatively much higher than that on highly: the change. Now, I want to ask the Senator this question: finished inlaid, teakwood furniture, for instance. Since the Suppose a rate in this bill is so high that it permits only a important element of transportation in the laid-down cost, the very limited importation of a given commodity, and because of domestic price of the article is always varying we could not that very limited importation the amount of revenue received get a converted rate that would produce the same amount of from that duty is inconsequential. In the case of that article, revenue, that would bring the same amount in dollars and cents in translating the rate from the statutory figure to the rate to the Treasury, could we? under American valuation, the amount of the revenue would be Mr. REED. Yes; I think we could. We would simply take so insignificant that it would not call for practically any change a reduced percentage which would yield on the American value in the high rate carried in the statute. the same amount of dollars. Mr. REEID. No, sir. What the Tariff Commission would be Mr. GEORGE. Ve1.-y well, let us take t1 simple example. instructed to do would be to advise us of what change in the Mr. REED. All right. percentage ~bould be made so that each unit would yield the Mr. GEORGE. Take an article of cheap furniture that is same amount of revenue; that is, if we are imposing a duty of a worth $1, and let us say that the transportation on that cheap dollar on a surgical forceps on the foreign valuation. what per furniture, which is bulky, is 50 cents. Then take a piece of centage rate should we charge on its American valuation so highly valuable inlaid furniture which is worth, as an illustra that we shall still get a dollar from the article. That is the tion, $2 or $3, and let u.s say that the transportation on both conversion which will be made. is the same. If the duty is 40 per cent on both articles when Mr. SIMMONS. I understand that to be the basis; I under they are imported, if we are to obtain the same return in dollars stand that the conversion is to be made upon the theory that and cents to the Treasury on the high-priced furniture we will the rate is to be fixed so that the duty imposed will yield to the necessarily get more on the low-cost furniture. Government practically the same revenue 1 Mr. REED. Not necessarily, because the market value here Mr. REED. So that practically the same revenue will be de is made up of more elements than foreign cost plus transpor 1 rived from that particular article. tation. Mr. SIMMONS. Yes; from that very article. Now, if there shall be no importations or practically no importations of an Mr. GEORGE. I understand that. article, what is to be the basis of increasing or reducing the Mr. REED. Probably the article of luxury sells at a higher . rate? profit than does the more generally dealt in cheaper article. Mr. REED. We know what the foreign value of the article is, Mr. GEORGE. I understand that, but one of the chief factors, and we know what its domestic value is; and, obviously, we of course, is transportation. which must be figured in every have got to lower the percentage on the domestic value so as to case, and the transportation, generally speaking-there are ex- • make it the equivalent of the higher percentage on the foreign ceptions-on the low-cost, moderat&prived article is much higher value; that is to say, if we are charging 70 per cent on a sur in proportion to the value .of that article than upon the higher- · gical forceps, which we are doing to-day, and that yields us a priced article of the same general class that would fall under duty, we will say, of 20 cents per forceps, when that forceps the same rate. gets over here--there are not many of them coming-it is worth Mr. REED. Then, Mr. President, in cases like that it will be four or five times as much as it was in Germany-- incumbent upon Congress to take account of the circumstances Mr. SIMMONS. Then the Senator's answer, as I understand, in levying the duties. I think that by the law of averages we te my question is that the change will not be dependent upon . will work out pretty complete justice in making the conversion, the large amount of revenue or th·e small amount of revenue but no tariff is ever completely just. which the Government may collec-t! Mr. GEORGE. There might be fixed a rate that would bring, Mr. REED. Yes, sir; that is correct. the same amount in dollars and cents into the Treasury on the Mr. GEORGE. Mr. President, will the Senator from Penn articles falling under a particular clause, and even under a sylvania permit me to ask him a question? basket clause, but the point I am making is that we would get The PRESIDING OFFICER. Does the Senator from Penn a rate that would necessarily bear hardest upon the cheaper sylvania yield to the Senator from Georgia? or moderate-priced merchandise, because transportation cost is :Mr. REED. Certainly. a variable quantity. Mr. GEORGE. How is the rate going to be ascertained, for Mr. REED. Then in that case we can correct that when we instance, upon various articles in a basket clause so as to come to pass the law. produce the same revenue? Mr. EDGE. We can reduce the duty accordingly. CONGRESS! ON AL RECORD-SEN ATE 4161 Mr: REED. Yes; we · can reduce the duty accordingly, of this country. The demand for·them is always very great; and course ; but the important thing is to look at this in a proper I have noticed in my own experience that it is articles of the sense. If we can not by this method make the conversion, then luxury class, rather than the ·staples, which jump most in value we are wedded for the rest of our national life to a system of between the foreign market and the American market. If that assessment for the purpose of taxation that everybody knows is is so-and I feel confident that it is-the principal losers by wrong: that everybody knows is unfair, that everybody knows this process of conversion will be those who buy the mure ex iD. ·'tes tmder-raluation, that everybody knows discriminates be pensive things in the American market and not those who buy tw~en different foreign countries, and that presents unnecessary the staples. difficulties in ascertaining foreign value when we may ascertain I realize that in the case of bulky articles, like furniture, domestic value right here at home. If we are ever going to the transportation cost is a larger proportion of the ultimate make the change we might as well begin now. valu·e than in the case of the high-priced articles; but that is Mr. KING. Mr. President-- easily taken care of by putting on plice limits in the duty The PRESIDING OFFICER. Does the Senator from Penn schedules. The bill is full of such cases now. sylvallia yield to the Senator from Utah? Take shotguns, for example. A low-priced shotgun pays a 1\lr. REED. I yield. very much lower rate of duty than a high-priced one. It is Mr. KING. I disagree with my friend from Pennsylvania perfectly easy to apply that principle to bentwood furniture on in saying that everybody knows that the present system pos making this conversion; and it would be a matter of justice to sesses all..jthe demerits and lack of virtues indicated by the do it, I think, if the facts bear out the Senator's illustration. Senator. ~e Senator knows that for more than a hundred Mr. GEORGE. Now, will the Senator permit me to ask years we have employed this system except in the year 1840 another question on a different line? or along there. For two years only we tried a different system, 1\Ir. REED. Surely. and it worked so unsatisfactorily that by the very next Con Mr. GEORGE. Under section 340-the new section which is

gress it was changed. All the efforts which have been made proposed as a substitute1 I presume, for section 642 of the by theorists and by domestic manufacturers and by others to House bill-- effectuate a change have not proven successful because, in spite Mr. REED. Yes; we thought it was a more practical way of / of· the defects which exist, it was considered that this system going at it. was fairer than any of those which have ·been suggested. I Mr. GEORGE. Under that section, how would the commis think it is better than the system which my friend from Penn sion proceed to make the conversion where the merchandise is sylvania is now suggesting. imported into the "United States, but is never sold in wholesale .1\It·. REED. Mr. President, of course there is not a vestige quantities-where it is imported, for mstance, say, by Wool of politics in this matter. If we were passing a bill for revenue worth, who buys for his own retail stores? only, if we were passing a bill for a very low tariff this plan Mr. REED. Oh, we would simply have to turn to the doc· would be just as applicable to them as it is to the protective trine of similarity there. The Senator will see that provided tariff bill which we are trying now to pass. I implore the for at the bottom of page 336: Senate not to regard this as in any sense political. It is not Republican doctrine any more than it is Democratic doctrine. If such • • • me.rchandise is not so offered for sale in the United It is simply the expression of a desire to proceed on the best States, then an estimated value, based on the price at which mer possible business basis, and it has no bearing on any of the chandise • • • comparable in construction or use • • • is so matters of party policy that enter into tariff legislation. offered for sale. Mr. GEORGE. Mr. President, will the Senator permit me That is the way it is done in all the Eur{)pean countlies, and further to interrupt him? it works without difficulty. The PRESIDING OFFICER. Does the Senator from Penn Mr. WAL~H of Massachusetts. Mr. President, may I ask sylvania yield? the Senator from Pennsylvania a rtuestion? Mr. REED. I yield to the Senator from Georgia. Mr. REED. Certainly. Mr. GEORGE. I agree with the Senator that this is not a Mr. WALSH of Massachusetts. As I understand the House party question, but I want' to see how conversion into the domes proposal-section 642-it provides for an investigation into the tic rates based on domestic value would work. Of course, I whole subject of valuation by a commission selected by the am using supposed cases and not actual cases. but I am think President. As I understand the Senate provision-section 340- ing of section 4U covering furniture. Let us say that the rate briefi.y stated, it presupposes a system of valuation which we is 50 per cent ad valorem on an article of cheap furniture which may adopt, and puts the Tariff Commission at the actuarial job costs abroad $1 ; that the freight on that article is 50 cents; and of calculating and letting us know what the rates should be as that the importer here makes a profit of 20 per cent, which would_ adjusted to that prejudged valuation. be 30 cents. That would bring the total selling price on the Mr. REED. If and when we do decide to adopt it; but it domestic value, sold in usual wholesale quantities in. the Amer does not in any way commit us to it. ican market, and so forth, as defined in section 340, up to $1.80. - Mr. WALSH of Massachusetts. I understand. Why not pro Now let us take an article of high-priced inlaid furniture which vide for an examination into all methods of valuation by the costs, say, $3 abroad, and let us assume that the transportation Tariff CommisSion, and have a determination and report of on that article i~ exactly the same as on the other, namely, 50 what rates would be used in the event of the domestic-valuation cents, and that the same importer's profit is added of 20 per cent, which would be 70 cents. We would, therefore, have a plan not being accepted and some other plan being used? domestic value in the case of the high-priced furniture of $4.20 What objection can there be to that? and a domestic value of the low-priced furniture of $1.80. The Mr. REED. I have this objection: If we called on the Tariff duty based upon foreign value on the cheap furniture would be Commission to give us a suggested conversion of rates for every 50 per cent of $1, which would be 50 cents. A duty of 50 per conceivable plan of valuation, they would have to spend a long cent on $3, the same rate of duty, would be $1.50. Very well. time in working out a schedule of L'ates on the American selling Now we want so to convert the rate as to get those same price idea, which, I fancy, the Senator disapproves as much as sums of money, or as nearly as practically the same sums of Ido- money, upon those two imported articles. Let us say that :Mr. WALSH of Massachusetts. I certainly do. 35 per cent is the converted rate. It would not be exactly that, Mr-. REED. And which I think has no possible chance of but it would be approximately 35 per cent of the laid-down cost adoption in the Congress. There is no use of wa;5ting the time on the domestic value -of the high-priced furniture. Thirty-five of the commission in preparing schedules of rates that we know per cent of $4.20 would produce not a dollar and a half, but we would not use. $1.47, or 3 cents under the rate based upon foreign value. On Mr. WALSH of Massachusetts. Does not the Senator think it the other hand, 35 per cent on the low cost of furniture, the cheap would be helpful to have an investigation into all the proposed furniture, would bring to the Treasury a duty not of 50 cents methods of determining valuation that seem to promise an im but of 63 cents; so there would be a spread in those two cases provement over present methods-an investigation made not by of 16 cents, and the spread would be against the low-priced or the President but by the Tariff Commission, such as the House moderate-priced merchandise. I believe that that would be bill provides for? true whenever merchandise falls under the basket clauses or Mr. REED. No, M:r. President; I do not, because I think under specific provisions that include both the low-cost and the the investigation has already been made. The Tariff Commis. high-cost merchandise. sion have given us report~ showing the methods of valuation Mr. REED. Of course, ·the Senator's arithmetic is correct; in all foreign countries, and comments on the wa.y in which but let me call his attention to the fact that as a general thing those methods work. They have given us all that materiaL those articles which are most enhanced in price in our markets Mr. WALSH of Massachusetts. It seems to me the defect of over the foreign markets are the articles of luxury, the articles the Senate provision is that it prejudges -the desirability of a of artistic merit. We are singularly bare of those things in particular method of valuation that it is hoped by some we will 4162 CONGRESSIONAL RECORD-SEN ATE OCTOBER 3 later adopt. And, moreover, if a long inquiry, involving com The PRESIDING OFFICER. Does the Senator from Missis- plex calculations, is made, over two years and it involving great sippi yield to the Senator from Alabama? · expense, that very fact will give an impetus and will operate Mr. HARRISON. I do. as at least a pa,rtial commitment toward the adoption of the Mr. BLACK. I suggest the absence of a quorum. domestic plan of valuation without a determination of its The PRESIDING OFFICER. The clerk will call the roll. merits. The legislative clerk called the roll, and the following Senators Mr. REED. Mr. President, in the first place, it will not take answered to their names : a long investigation. They think they can do it in six months Allen Frazier lrmg Smith lnstead of two years. It will not occasion great expense, be Ashurst George La Follette Smoot Barkley Gillett McKellar Steck cause they have practically all the material in their files Bingham Glass McMaster Steiwer already. In the next place, it does not prejudge the question. Black Glenn McNary Stephens It leaves it wide open. The Senate can ignore this report, as it Blaine Goff Metcalf Swanson Blease G

Mr. Sllf:MONS. Should we be legi~ting to impose B. vast Mr. HABRISON. Mr. President, I suggest the absence of a expense upon the Government just for the purpose 'Of determin quornm.. ing whether the Congress whieh meets two years from now, The VICE PRESIDENT. The cler..k will eall the roll. we will say, after the report is made, has changed its opinion The legislative clerk called the roll, and the following Senators upon the subject of American valuation? . an£Wered to their names : Mr. HARRISON. Certainly not; and if this amendment is Allen Frazier King Smith adopted, and the report is submitted, we will not only realize Ashurst George La Follette Smoot the costs expended but the inaccurate and useless character of Barkley Gillett McKellar Steck Bingham Glass McMaster Steiwe:r the data submitted. Black Glenn McNary stephens Mr. President, if this power is given to the Tariff Commission Blaine Goff Metcalf Swanson and this work assigned to them they will be so bnsily engaged Blease Goldsborough Moses Thomas, Idaho Borah Gould Norris Thomas, Okla. in the next two years on this matter alone that there will be no Bratton Greene Nye Townsend facts ascertained by them with reference to the m8:DY inquiries Brookhart Rule Oddie Trammell which the Oongress would no doubt find lt necessary or desirable Broussard Harris Overman Tydings Capper Harrison Patterson Vandenberg to submit to them. It would be almost impossible for them to Caraway Hastings Phipps Wagner do anything else. Connally Hatfield Pine Walcott Coming back more directly to the pending amendment, under Copeland Hawes Pittman Walsh, Mass. Couzens Hayden Ransdell Walsh, Mont. the first condition the appraisers would not be able, first, to Cutting Hebert Reed Warren ascertain the domestic value of innumerabl~ foreign articles Dale Heflin Robinson, Ark. Waterman that are sold in this country not " in the usual wholesale quan Deneen Howell Robinson, Ind. Watson Dill Johnson Schall Wheeler tities " but directly through retail srores or through agencies. Edge Jones Sheppard In other words, the amendment provides that they are to Fess Kendrick Shortridge ascertain the wholesale selling price in this country. There are Fletcher Keyes Simmons innumerable articles that are sold not through whQlesale chan The VICE PRESIDENT. Eighty-nine Senators having an nels at all but are sold in this country to agents who distribute swered to their names, a quorum is . present. The question is them throughout the country. There is another class of im on ag1·eeing to the committee amendment as amended. portations, in the nature of parts of a raw product, that come Mr. REED~ Mr. President, there are some Senators now in into the country that go into the finished product, that never the Chamber who were not present this morning when this dis reach the hands of the whol~aler at all, and yet the commis cussion began. I wish to say just a word as to the purpose in sion would be required to take all of that into eonsiderf!tlon. putting section 340 into the bill. The customs authorities of What is the second condition?- this country for many years have had di:ffiArizona, one in St. a higher foreign value. That is almost a ridiculous thing to do. Louis, and one in Boston, for example; and we will assume that It is discriminating in the wrong way. If we are ever going their prices vary a little. to make any discrimination, it ought to be in favor of the coun Mr. REED. That would not affect the problem at all, because try with the higher cost and against that which pays starvation we are not concerned with the price of the domestic product. wages. The present provision works just the wrong way We are interested only in the American price of the imported around. article; and if the domestic manufacturer of cutlery, through .4166 CONGRESSIONAL RECORD-SENATE OCTOBER 3 . patents or any other favorable eircumstance, can boost his price, That does not take in all of the sPread. It does not account that does not affect the dnty a bit. It is the value of the for it Then he said there were other incidental expenses. article that is brought in that is used as the basis of the duty. If we are going to use American value for the purpose of levy· Mr. SIMMONS. Mr. President, will the Senator pardon an ing these duties on foreign artiicles ; if we are going to take the interruption? price at which the foreign product is sold in the American· The VICE PRESIDENT. Does the Senator from Pennsyl· market, and that price is the price at which damestic products vania yield to the Senator from North Carolina? are sold, based upon the cost of advertising and the cost of Mr. REED. I do. selling, are we ll()t; levying a tariff not merely upon the cost of M.r. SIMMONS. The Senator does not ·mean the invoice production of that article abroad but upon the coot of advertis value? ing that article in this market? Are we not levying a tariff Mr. REED. No, Mr. President. upon the basis of the selling cost of that article through agents Mr. SIMMONS. He means the value at which the article is to whom the importers pay these high prices? And is it not, freely sold in the markets of the United States? therefore, absolutely tantamount to imposing upon foreign prod Mr. REED. Exactly. . ucts the principle of American valuation? Mr. :SIMMONS. A foreigner who sends his product to this Mr. REED., No, Mr. President; it most emphatically is not. country sends it here to get the benefit of the high prices that Mr. SIMMONS. I do not see how it can be differentiated, are paid in this country; and if be finds that a domestic unless it can be shown that there is a difference between the article is selling in the American market at a certain pri~ selling price that the importer charges when he put~ his prod he is likely to ..fix something like that pri~ upon his imported uct upon the American market and the price ~t which the article---- American producer sells the same product. I say that the im Mr. REED. Of course. porter .comes here for the purpose u~ getting the benefit of these Mr. SIMMONS. Thereby giving him the benefit of the high high prices; that he wants the last dollar, the high dollar; and, 1prices in this market. therefore, regardless of what be paid for the article, regardles.s Mr. REED. Every" merchant gets as much as he can for his of the foreign cost, he sells it \n the principal market& of this 1' product, of course. country at practically the same price at which the domestic Mr. SIMMONS. Then is it not a faet that whatever may be article is sold. the invoice price of a foreign article that foreign article is Mr. REED. And yet the Senator will remember, if he looks sold in the principal markets of this country at a price approxi back, the great throng of witnesses who testi:fied that im Imately the same as that at which the domestic article is sold? 1 porters were selling here at less than the American cost of pro. Mr. REED. That is very eommonly so, but not always so. duction. That is not a case where the American fixes the sell We all know of cases where it is not so. ing price. There are dozens and dozens of articles where that Mr. SIMMONS. We bad a, case which illustrates this prin has been done. ·ciple before the full committee when we were considering, Mr. HARRISON. 1\Ir. President, may I ask the Senator a · ,as the Senator will recall, the administrative fea.tureB. We question? were not hearing that part of the bill by subcommittee, but by Mr. REED. I will yield to the Senator in just a moment. 1the full committee. The contract for pens in the city of Baltimore was t.aken a few ~ ' A ge::J.tleman came there representing a concern manufactur weeks ago at less than they can be made for in this country. ' ing farmers' cream separators. He was asking for a duty on Americans are not fixing that price. 'separators costing less than $50. I believe they are on the free Jist. He complained that he was met with sharp competition from Mr. SIMMONS. Oh, I will not dispute the proposition that· abroad ; that practically one-half of the farmers' cream separa- ~ many instances the foreign article is sold at less than the· 1 domestic article. So, in many iDBtances, one factory sells the tors were imported into this .country. He was asked what ww same product at a different price than another. :the cost of production in this country. He said $41, as I remem· Mr. REED. It is just like every other- ·ber or $40-somethlng over $40; nearly $41. He was asked Mr. SIMMONS. But, Mr. President-- t wh~t be was selling that separator for in this market by whole- Mr. REED. I am going to yield to myself for just a minute, 1sale and he said $66, as I remember. . He was asked what be if the Senator please. :was' selling it for at retail to the far~er, and he said, upon the 1\.fr. SIMMONS. Very well. I thou~ht the Senator yielded Iinstallment plan, at $107. Then the importer was put on the stand, and he said that to me, and I was answering his suggestion. :the foreign product in which be dealt was invoiced at $30. :Mr. REED. I should like to nnBwer one of the Senator's Mr. REED. Less than that, as I remember. questions before we get to the next. Every one of these people 1\lr. SIMMONS. Well, around $30. Then he was asked sells jUBt low enough to get the business. We all know that. what was his wboiesale selling price in the American market. That is the trend of every market. •"Why " be said " $66, the price at which the domestic pro Mr. Sllll!ONS. Exactly. If he wants the bUBiness, just as ducer' sells." " What is your retail selling price in the Ameri a competing concern here wants to rake the business a way from can market?" "One hundred and seven dollars." one of his competitors, he will put his price a little bit lower; So I say that whatever may be the invoice price, or whatever but substantially the price which he demands, and which you may be the cost of production of the foreign article, when the say shall be the basis of applying these rates, is the selling price importer puts it upon the American market he seekB to get the of the domestic product. Of course, it may be a little bit under that price for the purpose of enabling him to control the market best price that can be obtained in the American mark~t. Mr. REED. Of course he does. aB far as possible against his competitor, the American pro. Mr. SIMMONS. And he approximates, therefore, in the ducer, just as Mr. Ford will put his prices below t;bose of some prices that he demands in the_ principal markets of the country, body else who is making a machine that costs about the same the American selling price. as his does in order that he may capture the trade instead of Mr. REED. Very often that is so, but not always. his competitor getting it. Mr. SIMMONS. Now, as I understand, the Senator wants Mr. BROOKHART. Mr. President-- this duty levied upon the basis of the selling price of the foreign The VICE PRESIDEl\TT. Does the Senator from Pennsyl article in the domestic market-- vania yield to tile Senator from Iowa? to :Mr. REED. Exactly. Mr. REED. I yield the Senator. Mr. BROOKHART. Suppose this American standard is taken Mr. SIMMONS. Which, as I say, will be about the pr~ of the domestic produd. rather definitely to start with : What is there in the provisions 1\.fr. REED. Then we have a fixed standard for the measure of the law that will prevent the importer from changing his ment of the duty. . price after he has paid the tax, and selling the article for twice Mr. SIMMONS. 1 understand that; but does not that mean as much? this: Mr. REED. Oh, obviously he has to enter it at the value that Following up the cream-separator matter, we asked this it commands in the first wholesale market here. question : "How do you jUBtify this enormous spread between Mr. BROOKHART. That is before he bas sold it the cost of that article in .America and the price at which you Mr. REJED. That is true. sell it to the farmer? It is a spread of $77. How do you Mr. BROOKHART. Suppose he turns aroun-d and sells it for justify it?" twice as much. What about that? 1\11'. REED. That is one thing that could not be blamed on Mr. REED. The ~ntry is not liquidated the day it is made. the Republican Party. Usually it takes considerable time to do it. Most imports are 1\fr. SIJ\fl\IONS. He said, " One of the justifications is that of articles that are already being sold currently. There is every it costs us $11 per unit, for each of those machines, to advertise opportunity to check up, from the importers' own sales book, it and to build up our trade. Then we have to pay our agents whether or not his entry is proper; and that would be done who sell on the installment plan 33% per cent," as I remember. regularly. CONGRESSIONAL RECORD-SENATE 4167

Mr. BROOKHART. Why not make that the ba~ then? United States value is wholly transformed and given quite prop Why not make it definite? erly a new name-domestic value. And then it is proposed 1\Ir. REED. The price at which he sells it? to spend a lot of public money getting ready for putting d(} Mr. BROOKHART. Yes. . - mestic value into effect as if we knew that that is what we Mr. REED. He does not always sell it, you know. Some want. And ·all because of the much talked about and little times he uses it in manufacturing. Sometimes he imports it proven undervaluation. for his own consumption, his own use. Mr. KING. Mr. President, will the Senator yield? Mr. BROOKHART. One other thing that I .am chiefly inter Mr. WALSH of Massachusetts. I yield. ested in is this : If this provision passes, and the matter goes Mr. KING .. I would like t(} Eay that the claim of undervalua to the commission, they will report these ra,tes back to the tion has been greatly exaggerated. Mr. Doherty, who repre Congress. sents the Steel Institute, which means all of the large steel Mr. REED. Exactly. corporations, in his testimony given before the Finance Com Mr. BROOKHART. They will not be adopted until we see mittee, when I called his attention to testimony which he had them, and see what they are. given in 1922, conceded the accuracy of the testimony, and he Mr. REED. Absolutely not. stated then, and he had been an examiner for many years, that Mr. BROOKHART. This provision does not propose, then, to all this talk about undervaluation is a subterfugej a sort of change the rates or change the. system, except to get a report "bogey," for the purpose of concealing the true facts. from the commission? I have a statement, which has been sent me at my request Mr. REED. That is absolutely right. ·we adopted yesterday by the Treasury Department, showing that the undervaluations a so-called flexible tariff provision .offered by the Senator from which resulted in collections amounted to about $5,000,000, and North Carolina [Mr. SIMMONS] that called fQr the commission that the overvaluations for which refunds were compelled to report to Congress on changes to be made in the duties; and exceeded the undervaluations. So that the claim of under tba t was heralded as the proper way to have a flexible tariff. valuation, may I say to the Senator, has been-greatly exagger Now, this. is exactly that idea. It simply calls upon the com ated. mission to advise us how, if, when, and as we change the basis The claims about undervaluation grow often out of a differ of valuation, we may do it without indirectly increasing the ence of opinion as to whether or not certain taxes were paid rates. on the goods in foreign countries, and whether they were Mr. BROOKHART. On that proposition I had hoped the legitimate deductions from foreign value; whether or not some standpatters would adjourn and let us write the tariff bill; changes had taken place in the valuation of the property from but if they are going to help us in that way, maybe they had the time of the purchase abroad to the time of importation into better stay. the United States. There was no fraud, no undervaluation, in Mr. REED. The ~t~ndpatters might pretty nearly as well the proper sense; merely a difference of opinion as to the form adjourn, now that the Democrats on both sides of the aisle of basis to be used or the credits to be allowed; just the same have decided to take the· bit in their teeth. We have discovered as in the case of men buying merchandise, there may be a recently what a "Progressive" is. I have learned he is a Re difference as to the credits which should be allowed. publican who always votes like a Mississippi Democrat. Mr. WALSH of Massachusetts. I thank the Senator for his Mr. SIMMONS. :Ooes the Senator mean to say there are a observation. It is helpful in developing the point I want to lot of Democrats on the other side of the Chamber? make. Mr. REED. We can prove it by the last roll call. This amendment presupposes, I repeat, a dissatisfaction with Mr. EDGE. Mr. Pr~si!}ent, will the Senator from Pennsylvania the present law dealing with valuation, or it would not be here. yield? It presupposes a dissatisfaction with the amendment of this bill Mr. REED. I yield. providing for the present bases of valuation. Let us see what Mr. EDGE. I am ju&t wondering if that same coalition will the bases of valuation provided in the bill are. I will read work as well when proposals .to .raise agricultur{ll rates are the whole enumeration; it is very brief: made by the representatives of the coalition on this side of the SEc. 402. Value: (a) Basis: For the purposes of this act the value aisle. of imported mer~handise shall be- Mr. REED. I do not know what ties of affection bind this (1) The foreign value or the export value, whichever is higher; coalition together, I do not know how tightly they are glued ; (2) If the appraiser determines that neither the foreign value nor but I fear that the coalition may not stick throughout the con the export value can be satisfactorily ascertained, then the United States sideration of the bill. value; Mr. SIMMONS. I will say to the Senator that it was tightly (3) If the appraiser determines that neither the foreign value, the en'tugh glued yesterday. export value, nor the United States value can be satisfactorily ascer· . Mr. REED. Yes; they were very tightly glued yesterday. tained, then the cost of production ; Mr. WALSH of Massachusetts. Mr. President, I will state (4) If there be any similar competitive article manufactured or my position on this amendment as briefly as possible. The produced in the United States of a class or kind upon which the Presi· amendment has to do with valuation. It is proposed that the dent has.made public a finding as provided in subdivision (b) of section Tariff Commission shall submit to Congress a complete list of 336 of this act, then the American-selling price of such article. the legal rates of ad valore!I). duties revised so as to bring them into adjustment with, or accord with, a certain new basis of Here is every. conceivable means set forth for determining valuation. The task proposed fO'r the commission is strictly valuation under existing law, and later in section 402 each analogous to the calculations of an insurance actuary who con means is defined. I repeat, the amendment pending in section verts one set of insurance payments or benefits into an equivalent 340 presupposes, or it would not be here, that none of these set of payments or benefits which put into effect a different form methods, even with some of them redefined, is satisfactory. It of insurance policy. It is basic to the whole proposal of the presupposes, upon the statement of the Senator from Utah [Mr: proponents of this amendment, as I understand it, that they are SMOOT] and the Senator from Pennsylvania [Mr. REED], that dissatisfied with the present basis of valuation and prefer an there have been serious undervaluations under the existing other ; they are dissatisfied with the present valuation basis be system of valuing imports that now can not be prevented. cause it is known that the're has been and is some undervalua If that be true, than I ask, Why did not the Senate committee tion of importers, and it is alleged that there has been and is a retain the House provision providing for a study and investiga gre~t deal-because, in short, of a belief unproven before this tion into this whole question of valuation, into the question of body as yet-that there is insufficiency and remediable inade whether there has been a serious amount M undervaluations or quacy in existing law respecting customs valuation. not, into the question ot whether there is need of a drastic Section 402 of the bill . sets forth the various provisions of change from the present law to another basis of valuation? existing law with respect to valuation with one of them alone, Who can oppose that? If there has been much undervalua considerably changed-namely, the basis of the valuing method tion-and the Senator from Utah very properly questions its in use and known technically as the United States value, being extent-let us find out the extent of it, what is the reason for in fact foreign value obtained indirectly to overcome certain dif it, what is the appropriate remedy, if there be a remedy. Lei ficulties encountered by the appraisers. This modification of us find out the facts as to whether the present system of valua the existing United States value basis given in subdivision (d) tion bas broken down. Propagandists have said so; that does of section 402 of the Senate bill-a modification I maintain not make it so. much for the worse--still embodies at least in part the basic What does the majority of the Senate Finance Committee do? theory of that method of determining valuation, in that the They discard the provision of the House, that a study be made existing series of statutory deductions from the wholesale sell broad enough to include, first, the determination as to whether ing price used as the starting point of the calculation is still we need a change or not-whether it is advisable to make a continued. In section 340 the deductions drop out and the old change from the present system of valuation to another sys- LXXI-263 4168 CONGRESSIONAL RECORD-SENATE OCTOBER 3 tem of valuation-and, secondly, an investigation into the ques Mr. SMOOT. When I say "domestic,"· I mean the American tion of whether there has been-all this is implied from the price. general language employed in the House bill-any underva.lua Mr. WALSH of Massachusetts. I understand. tion, to.what extent it is going on, aud, therefore, whether we :Mr. SMOOT. As I was saying, I would not know, and no need a change. By striking out the House provision, the impli human being would know, what the rate should be converted cation is that the Congre~ does not need any such investigation, from foreign value to the domestic value. Since we are passing does not need to know whether or not the present law is satis a bill, it does seem to me that we ought to get that informa factory, but ask to have submitted to the Congress, in order tion before we can even discuss it intelligently. that they make an act two years from now, a schedule of Mr. WALSH of Massachusetts. Let me ask the Senator a rates based upon a new system of valuation, a new theory, question. Is the Senator dissatisfied with the present basis of which we have not had time here to discuss, and will not have valuation? · time to discuss until the new rates are rept>rted based upon a Mr. SMOOT. There has always been complaint. different valuation from the present law, namely, domestic Mr. WALSH of Massachusetts. Is the Senator dissatisfied valuation. with it? Mr. DILL. Mr. President, will the Senator yield? Mr. SMOOT. Yes. Mr. WALSH of Massachusetts. I yield. Mr. WALSH of Massachusetts. All right. What is the harm Mr. DILL. Do I understand, then, that if the Senate defeats of having an investigation made, and the Senator and everybody the committee amendment the House language will be the lan else who is dissatisfied setting forth his objection, and what he guage of the bill on this subject? would suggest in place of the present system of valuation, and Mr. WALSH of Massachusetts. I do not think the Senate having the proposed changes reported to Congress? committee have offered this amendment as a substitute for the Mr. SMOOT. All the Senator could suggest or all I could House provision. We will have to restore the House provision, suggest is included in section 340, covering the conversion of but we will come to that section later, and then we Will have an rates and domestic valuation. That covers it all. It covers all opportunity to approve or strike out the committee amendment. that is in the House provision. • If we strike this amendment out, when we come to section 642, Mr. \'V ALSH of Massachusetts. I beg the Senator's pardon. we can refuse to accept the amendment to strike out proposed There is no provision in section 340 for an investigation and by the Senate Finance Committee. study of the question of valuation. That limits the inquiry or Will the Senator from Utah agree that if this Senate com investigation to furnish,ing the Senate with new rates on the mittee amendment now pending is stricken out, he will favor assumption that we are going to apply the domestic valuation retaining the House provision? Will the Senator state what his basis. position is on that suggestion? Mr. SMOOT. They would have to make an investigation in Mr. SMOOT. Mr. President, perhaps I would have to qual order to convert the rate from foreign valuation to domestic ify that by saying that before the provision of the House were valuation. agreed to there would have to be certain amendments to it. Mr. WALSH of Massachusetts. If the Senator thinks it Mr. WALSH of Massachusetts. The Senator is willing to includes what the House did, what is the objection to the House have some investigation made by the President-and I think provision,? it ought to be through the Tariff Commission-into the question Mr. SMOOT. It does not go far enough. of how this present law determining valuation has worked, Mr. WALSH of Massachusetts. My study of these two amend whether it is satisfactory or unsatisfactory, whether it is, on ments makes this very clear division, namely, that the House the whole, the best system of valuation. proposal does not presuppose anything. It instructs the Presi Have there been undervaluations? To what extE:nt have dent to investigate-and I think it ought to provide that the undervaluations prevailed? To what extent has the present President should have the investigation made by the Tariff Com mission-and is broad enough and large enough to cover an strict basis of valuation, with its Yarious alternatives of fixing inquiry into the whole field of whether there ought to be a the basis of valuations, been satisfactory? change of valuation or not, and what change we ought to make, It seems to me that such an investigation would be highly use and also broad enough and large enough to go into the question ful and highly beneficial. But the Senate Finance Committee, of whether there has been much undervaluation under the by inference at least, says: "Let us not go into the question of present method of determining the valuation of the imported whether it is satisfactory or not. We know it has not been. article. Let us not go into the question of whether there has been under The Senator's amendment presupposes that we do not want valuation or not. We know there has been. Let us have no to hear any more about the need of changes in valuation or more discussion, but let us now take the first step to bring whether there has been a considerable amount of undervaluation about a new basis of valuation by asking the Tariff Commis actually taking place under the present law, but that we are sion to give us data on which we can change to domestic valua ready now to ask th~ Tariff Commission to report to us the tions two years from now, and put into effect new rates on a rates that will permit us to apply the domestic-valuation basis. new valuation of which we have heard little heretofore and Mr. SMOOT. That is tbe information we want the Senate to which has not been tried here of recent years in actual opera have. tion under modern conditions-namely, domestic valuation." Mr. WALSH of Massachusetts. I agree with the Senator. If We did have it once, under the compromise tariff act of 1833, we are satisfied that the change should be made, if we are satis and it failed. fied that no more study ought to be made about whether the What could be more simple? Do we want to require investi present valuation basis has broken down or not, if we are satis gation and study before we make this change, or do we want fied there has been wholesale undervaluation and that there are no study and no inquiry, but to ask the Tariff Commission to defects in the system, I agree with the Senator. But I am not make changes in present rates upon the assumption that we so satisfied. I want to have a study made of the question have already committed ourselves, indirectly, to be sure, but by experts. I want to have a study made by the Tariff Com have, at least, gone to the extent of saying to the Tariff Com mission of the whole question. Has the valuation basis that is mission, " Take the first step of preparing duties based upon now the law broken down? Is it too loose? Are there means the domestic valuation upon which we can later enact a law." of evasion under it? Can it be strengthened and improv~d? I Mr. NORRIS. Mr. President, will the Senator yield? want to prevent the violations of law by importers referred to by Mr. WALSH of Massachusetts. I yield first to the Senator the Senator's colleague. I want to prevent importers frvm ob from Utah. taining a valuation that is unfair to the American producer. Mr. SMOOT. I believe that the question of the conversion of I would join the Senator in any effort to have that kind of rates on the American valuation has been discussed every time an investigation made, but I am not satisfied or convinced that a tariff bill has come before the House or the Senate. No action there has been such an extensive degree of undervaluation has ever been taken by either the House or the Senate on that under the present law that it is now known that it is nece sary question. or advantageous to make a change. Mr. WALSH of Massachusetts. When the Senator says Mr. SMOOT. My colleague referred to cases that were acted "American valuation " he means domestic valuation? upon, but there was no reference to the cases that were dis Mr. Sl\IOOT. As I stated before, I am opposed to taking the covered and which the foreign importer acknowledged. The American valuation, and always have been. contested cases are rather limited in number, but the cases of 1\Ir. WALSH of Massachusetts. Does the Senator mean undervaluation discovered even before the goods were applied "domestic " or "American "? for in many instances are numerous, and the rates have been Mr. SMOOT. Domestic. increased there. I admit that. But the House provision is Mr. WALSH of Massachusetts. That is the word used here, limited in its scope. There is no need for the House provision " domestic." There is another valuation, the American-selling unless we are going to adopt the American valuation. That is price, which we are not discussing. the basis of the Hons~ provision. If we are going to adopt it, 1929 CONGRESSIONAL RECORD-SENATE 4169. why not tell the Senate and the Honse that the rates converted report thereon, with such recommendations for legislation as he may under this bill shall be rates based upon the American valua deem advisable, including such formul:e as he may propose for adjust tion, and then we will have the entire information and not ing the rates of duty imposed by this act to conform to any change in merely a part of it. Suppose the commission did find and sub basis he may recommend. There are hereby authorized to be appro mit to Congress a report as provided for in section 642, inves priated such sums as may be necessary to carry out the provisions of tigation of methods of valuation, and suppose we complied with this section, to be expended in the discretion of the President. that report, then we would have to ask for the same informa Now I desire to read section 340: tion that we are asking for now in section 340. Mr. WALSH of Massachusetts. Earlier in the debate I asked SEc. 340. Domestic value--Conversion of rates: (a) Conversion of the Senator from Pennsylvania [Mr. REED] if he would accept rates by commission: The commission shall ascertain, with respect to section 642, the House amendment providing for an investiga each of the ad valorem rates of duty, and each of the rates of duty tion, and he refused. I agree with the Senator from Utah that regulated by the value of the article, specified in this act, an ad valorem if the commission find and report that the domestic valuation rate (or a rate regulated by the value of the article, as the case may ought to be substituted we would have to ask for the informa be) which if applied upon the basis of domestic value would have tion sought in the Senate amendment. But the Senator from resulted as nearly as possible in the imposition, during the period from Penn::;ylvania is opposed to the suggestion of an investigation. July 1, 1927, to June 30, 1929, both dates inclusive, of amounts of duty He says we do not need it, that we know now that the present neither greater nor less than would have been collectible at the rate basis of valuation is all wrong, that we know now that lt per specified in this act applied upon the basis of value defined in section mits of undervaluation. The Senator from Utah and the 402 of the tariff act of 1922. Senator from Pennsylvania are ready to adopt the domestic (b) Report to Congress by commission: The commission shall, as valuation and are ready to ask for the rates to apply the soon as practicable, but in no event later than January 1, 1932, subm!t domestic-valuation basis. a report to the Congress setting forth the classes of articles with The trouble is 1:b,at the two Senators are ahead of the rest of respect to wbich the conversion of rates has been made, together with us in forming a judgment leading to the discrediting of the the converted rates applicable thereto. present valuation plan. I am not prepared to go that far. I (c) Data to be furnished by Secretary of Treasury and Secretary want to study it, and have complete information first furnished of Commerce : To assist the commission in carrying out the provisions as the basis of study. I want to know how much the present of this section, the Secretary of the Treasury and the Secretary of law and the proposed continued law in section 462 is defective. Commerce are authorized and directed to furnish to the commission, I want to know how bad it is, how vicious it is. I want to upon request, any data or information in the possession or control know to what extent we have been allowing importers all these of their respective · departments relating to the importation, entry, years to bring in their goods undervalued. Let us have a appraisement, and classification of merchandise and the collection of thorough inquiry and report. duties thereon. Mr. SMOOT. If we should live 100 years, we would find (d) Definitions : When used in this section- that the undervaluation would never cease. In the last 100 (1) The term "domestic value," applied with respect to imported years we have had it, and in the next hundred years under the merchandise, means : existing law it would continue. (a) The price at which such or similar imported merchandise is freely Mr. WALSH of Massachusetts. Side by side with the re offered for sale- quest for this inform3;tion showing what it is desired to sub And so forth. stitute for present rates in the tariff law if we should apply Where in that section is there any direction or requirement the American valuation, what is the harm in having an in of anybody to make an investigation into the whole subject of vestigation made into the whole subject of valuation to ascer valuation? It is not there. The Senator from Utah presup tain the wisdom of changing the present law, to what extent poses that there is a provision here for a general investigation. undervaluation has gone on, and so forth? What is the harm Of course, there is a requirement for the commission in their in that? own minds, in their own deliberations, to make investigation of Mr. SMOOT. There is no harm-- the appropriate data to be used in order to change a rate based Mr. WALSH of Massachusetts. Then let us agree to it. upon foreign valuation to a rate based upon domestic valua 11-fr. SMOOT. Oh, no; if the Senator please. The amendment tion; but there is no requirement for even that information to now provides for it. be reported. There is no requirement for a general survey, a Mr. WALSH of Massachusetts. Where is the language pro- general study of the whole field of valuation. It is a survey of viding for it? . the subject of valuation that the House sought. It is a table of Mr. SMOOT. The Tariff Commission can not reach any rates the Senate amendment asks for. decision under section 340 unless they have made a thorough I do not care to prolong the discussion further. I have no investigation. particular objection to the Senate proposal, notwithstanding Mr. WALSH of Massachusetts. They may make an inves that its proposal at this time is shrouded with suspicion and tigation in their own minds in order to fix the new rates. doubt, if adopted. I shall vote against the pending section They do not have to make it public. AU they are asked to do because I prefer the House provision of the bill is to determine mathematically rates based upon the definition Mr. SMOOT. The Senator read only paragraph (1), under of the domestic valuation basis contained in the amendment "Definitions," as follows: directing them to furnish the changed rates. There is no When used in this section- provision for their views upon the present basis of valuations (1) The term "domestic value," applied with respect to imported and the need of a change. merchandise, lDeans- Mr. SMOOT. In making the report here they are bound to tell us why the investigation was made, and they are bound What does it mean? The amendment itself shows what it to give the reasons for their report. When they report to the means. It means : Senate those reasons will be given because it would be perfectly (a) The price at which such or similar imported merchandise is unthinkable that the Tariff Commission would simply report freely offered for sale, at the time of exportation of the imported mer to Cong1·ess that ~ 25 per cent on the basket clause should be chandise, ·packed ready for delivery, in the principal market of the reduced to 17.5 per cent on the basis of the American valuation United States to all purchasers, in the usual wholesale quantities and and not give any explanation whatever. That would not haP.. in the ordinary course of trade, or pen. I say now that section 340 gives us additional evidence (b) If such a similar i..niported merchandise is not so offered for sale to that provided for in section 642. I want it all and the in the United States, then an estimated value, based on the price at committee wanted it all, and that is why we asked for it. which merchandise, whether imported or domestic, comparable in con · Mr. WALSH of Massachusetts. I must read section 642 right struction or use with the imported merchandise, is so offered for sale, now so as to convince Senators that it provides for an entirely with such adjustments as may be necessary owing to differences in different investigation than that -of determining rates requested size, material. construction, texture, and other differences. of the commission in section 340, domesti_c valuation. Section (2) The term "rate of duty regulated by the value of the article" 642 reads as follows: means a rate of duty regulated. in ·any manner by the value of the SEc. 642. Investigation of methods of valuation : The President is article, aild includes the value classification by which such rate is requested (1) to cause a survey to be made, by such agency or agencies regulated. as he may designate or appoint, of bases for the valuation of imported Mr. NORRIS. Mr. President, will the Senator yield? merchandise for the assessment of customs duties, particularly with a Mr. WALSH of Massachusetts. I will yield in just a moment. view to determining the extent to which values in the United. States What the Senator from Utah has read is the definition of may properly be used as a basis for the assessment of customs duties ; domestic valuation. and (2). to submit to the Congress, _at the earli.est practicable date, a Mr. SMOOT. That is what I said. CONGRESSIONAL RECORD-SENATE OCTOBER 3 · :Mr. WALSH of Massachusetts. It is the definition which the The President is requested (1) to cause a survey to be made by such Congress gives to the Tariff Commission upon which they are agency or agencies. as ~e may designate or appoint- to b.t,lse.their changes in rates of duty. Is not that correct! I.· a~ inclir;ted t'o thi~k that I had rather leave the language Mr. SMOOT. Certainly; but I wanted to call attention to as It IS now m the section than to provide, as the Senator from the fact that this is a part of the amendment we are to vote Massachusetts has suggested, that that investigation and survey upon now, and that the information is not asked for in the should. b~ made by the Tariff Commission, because the Tariff language of the bill as it passed the House. This is specific CommiSSion-- information we ask for, and then we also say that after receiv Mr. GEORGE. Mr. President-- ing all this information the commission shall report to Congress . The VICE PRESIDENT. Does the Senator from Nebraska what the rates shall be on the domestic-valuation basis as com yield to the Senator from Georgia? pared with the rates ::n the present law. That is all there is Mr. NORRIS. I shall yield to the Senator from Georgia in a to it.· · moment. · Mr. WALSH of Massachusetts. Does the Senator conceive Because the .Tariff Commission, under section 340 the section that the Congress will make a different definition of American now under consideration, will' necessarily have to make an vuluQ.tion two years · from now, after investigation made by investigation. the Tariff Commission, than the one made now by the Finance Some complaint has been made to m·e by Members of the Committee? · Senat~ and by others who are opposed to the proposed Senate . Mr. SMOOT. It may not. I can not say. committee amendment, that the tariff investigation provided Mr. WALSH of Massachusetts. I . feel very strongly that we for, or that must necess~rily follow if the provisions of section ought not, without thorough investigation and a general survey, 340 be carried out, . will ~ot b_e falr; that the tendency will be to discredit · the present system of valuation which we have ~o conduct ~he investigation in such a way as, in effect, to had all these years, and which has been incorporated in bill after rncrease tariff rates. If there be anythina0 in that contention bill. The Senator presupposes that in two years we will adopt then section 642, providing for another investigation should b~ a new valuation, which has not been studied or debated or retained. An investigation to be made by the P~esident by investigated by a governmental expert commission. so.me other agency than the Tariff Commission, it seems to me, I desire to yield now to the Senator from Nebraska [Mr. Will have a tendency to put the Tariff Commission on guard NoRRIS], who asked me a short time ago to yield to him. and cause it to be more careful, perhaps, than it otherwise Mr. NORRIS. The question I was going to ask the Senator would be to make an investigation that would in every respect he has in part answered. When I can get the floor in my be fair. own right I shall discuss it briefly. Mr. WALSH of Massachusetts. I am glad to yield the floor I agree with the Senator from Massachusetts in that I should like to have, and I think Congress ought to have all the light Ill OW. ,. Mr. FLETCHER. Mr. President, before the· Senator takes W? can get. Th~t is the main reason why I am' for the com his seat may I ask him a question? mittee amendment. If agreed to, it will afford us information Mr. WALSH of Massachusetts. Certainly. that we do not now have. For the same reason I am in favor l\Ir. FLETCHER. On the subject of value in section 402 I of retain~g section 642, because that section, if adopted, will note, at page 340, the committee proposes to strike out para afford us mformation which we do not now have. graph (b), entitled "Finality of appraiser's decision." It · Every ~tudent of the subject, I think, will agree that our seems to me that is connected with the whole subject more or presen~ s.ys~em is. faulty. It has many very serious defects. less. Is there a reason for striking that out? ~ften ~t IS Impossible to get a fair valuation; often it must be Mr. WALSH of Massachusetts. I will say to the Senator Impossible for our .officials even to satisfy themselves that they that there is no controversy about that provision. The whole are making a fair valuation when they have to go into a foreign committee is favorable to striking out that provisioo. country to get it. · Mr. NORRIS. l\Ir. President, I am very much impressed So if we can remedy that difficulty, I think everybody who believes in a fair administration of our tariff laws would be in with what the Senator from Massachusetts [Mr. W .ALSH] has said in the comparison he has made between sections 340 and favor of doing so. I think the Senate committee amendment If 642. which is !low under discussion is a step in that direction. It has been assumed, at least by some, that if we approve adopted, It would give us additional information and as has the amendment of the committee inserting section 340 we shall been truly said, ass~ing that_the investigation ~ill ~~ honest, also approve of the proposed amendment of the committee strik and that the converswn from one method of valuation to another ing out the House provision known as section 642, on page 476. expressed in terms of percentages, not in specific rates, will be As I understand, in reality I agree with the Senator from honestly made, there will be no difference in the amount of Massachusetts, although, while he said he was going to vote duty paid and no difference in fact in the revenue collected in against the committee amendment, it is my present intention any case. to vote the other way. Nevertheless, from what the Senator Mr. SMOOT. Mr. President, will the Senator from Nebraska has said he was voting against it, at least partially, on the yield to me? .theory that if we approve the Senate committee amendment in ~r. NORRIS. I had first agreed to yield-and I had forgot serting' section 340 we must necessarily approve the Senate com ten about it-to the junior Senator from Utah [Mr. KING], who mittee amendment in relation to section 642. interrupted me. I will now yield to him. Now, I should like to call the attention of the Senator from Mr. KING. Mr. President, the question I was about to ask Massachusetts, also of the Senate, to the fact that, in my judg the Senator was this: Of what utility is it to adopt the amend ment, that is an illogical conclusion. We can approve the sug ment offered by the Senator from Pennsylvania, which has be gested amendment of the committee inserting section 340, and come the committee amendment, when it is conceded that values then disapprove the action of the committee striking out section are fluctuating? If the commission should by mathematical 642, and thereby have both sections in the law. As I under calculations and formula reduce the rates to dollars and cents · stand, that would satisfy the Senator from Massachusetts, and present their findings with respect · to the hundreds of thou: I think, as I now understand, it would also satisfy me. sands of items that are em'Qraced within the tariff bill and say .1\lr. WALSH of Massachusetts. I have been requesting the "A certain item or article has paid a dollar of tariff d~ty with~ majority members of the Finance Committee to bring that the period indicated; the rate which was levied which produced situation about by agr.eeing to the incorporation of both sections. the dollar was 25 per cent, and we find that, if conditions re Mr. NORRIS. I think we ought to do that. So far as I am main practically the same, the rate ought to be 16 per cent or concerned, and as nearly as I can form an opinion from the 161;2 per cent"·; and if we then take up the proposition sul> evidence so far produced, it seems to me we ought to approve mitted in the report, go through the tariff bill, amend every the amendment now under discussion and disapprov'e the sug tariff schedule, and adopt the rates fixed in the report sub gested amendment of the committee striking out section 642, mitted, and then prices and economic conditions change, what and thus have both these provisions iri the law. That would would be a suitable rate one day might not be a suitable rate insure an investigation. The investigation provided for in sec another day. We might not want to accept their report, we tion 642-- might not want to accept the scheme which they suggest, but a . Mr. KING. Mr. President, will the Senator from Nebraska study might convince us that an entirely different system would yield to me? be better. But, supposing that the study convinced us that we 1\fr. NORRIS. I shall yield to the Senator from Utah in just should adopt the plan suggested by the Senator from Pennsyl a moment. vania, we could then in the light of additional facts enact a The investigation provided for in section 642 is to be made tariff bill. . in a manner provided for by the President. The section in part Mr. NORRIS. Mr. ·President, assuming now that we get the reads: information proposed to be obtained under this amendment, as- 1929 CONGRESSIONAL RECORD-SENATE 4I7r suming-which is fair, r concede-that the values change from The PRESIDING OFFICER (Mr. ToWNSEND In the chair). day to day, that happens all the time; that is always the case Is there objection? as to every ad valorem rate. It is true now under existing law ; Mr. SIMMONS. Mr. President, I wish to suggest to the Sen it has always been true in the case of every ad valorem rate and ator that section provides that the President may select the necessarily must be so. agency to make this investigation. The junior Senator from Utah said if we secure additional _Mr. SMOOT. Yes. information two years from now or at any time in the future · Mr. SDOIONS. ·I think the investigation ought to be made we may want to put into the law the scheme provided for by by the Tariff Commission. the committee amendment, and that when we get this informa Mr. SMOOT. It is more than likely that the President will tion then we can provide for what we have provided for in this have it made in that way. particular amendment That is true. But it would only delay Mr. SIMMONS. Why not put that in the amendment, then? the matter that much longer. We will be able to do that if we Why not amend the House provision by simply providing that leave both of the provisions which I have mentioned in the law; the investigation shall be made by the Tariff Commission? and when the report following the investigation to be con Mr. SMOOT. It is only a suggestion; but the President may ducted under section 642 comes in and the report of the Tariff want the Department of Commerce to make an investigation, Coinmission comes in, if we think then we want to adopt the and as far as I am concerned I should like to have the tw&. method provided for in this amendment we can do so. We will Under the amendment, however, the President can have the have the information all at hand immediately to put it into Tariff Commission do it. effect; but, if we follow the Senator's suggestion and _leave· out Mr. NORRIS. Mr. President, I should like to suggest that this amendment and have conducted the investigation provided the only possible objection to leaving the matter in the hands for in section 642, and decide that we want to adopt the new of the President is that there might be to some extent a duplica plan, then we would still have to have the Tariff Commission tion and a needless expense, perhaps, if this separate investiga or some other body.do what is provided for in this amendment, tion should be made ; but there are a good many people who are and that would only put off action that much longer. not exactly satisfied with the Tariff Commission. Mr. SMOOT. Mr. President, will the Senator yield? Mr. SIMMONS. I am one of them. Mr. NORRIS. Yes; I yield to the Senator from Utah. Mr. NORRIS. I am not sure but that I am &ne of them. It Mr. SMOOT. Mr. President, as to section 642, I have no may be that I am wrong, but I, perhaps, have a prejudice against objection to the investigation provided for there at all. What them. I think there are a good many people who feel that way. little duplication there may be will not hurt even if it should I should like to nave this investigation made by somebody occur. outside of the Tariff Commission. We are all trying to get only Mr. NORRIS. There might be some duplication, but it will be the truth about this matter. We are trying to devise a better worth while to get the information from two different sources. method of making tariff bills. It is worth money if we will set To see whether or not the information obtained as the result two different agencies to malting investigations in somewhat of the investigation from one source and the information from different directions. When they get through, if their recom the other source correspond will give us a better idea of what mendations coiTespond, that fact will add very greatly to the the real truth is. weight of whatever recommendations they make. Mr. SMOOT. Mr. President, I will ask the Senate to disagree I should like to have somebody besides the Tariff Commis to the committee amendment to strike out section 642, so that sion go into this thing, and I should like it to stay the way it is. both sections may remain in the bill. Mr. SIMMONS. I feel very much as the Senator from Ne Mr. BINGHAM. Mr. President, I suggest that the pending brabka does about the Tariff Commission ; but it looks to me motion be amended by adding to it that the Senate disagree to as if we are providing two commissions to do practically the the committee amendment as to section 642, so that we may do same thing. The object of section 642 is to get the advice of at one time the two things suggested by the Senator from some agency of the Government as to what shall be the basis Massachusetts and approved by the Senator from Nebraska. upon which tariff rates shall be applied. That is the purpose of ~ Mr. NORRIS. The chairman of the committee has agreed it. The purpose of· the amendment of the committee, sponsored that if we adopt this amendment he will ask the Senate to dis by the Senator from Pennsylvania, is to ascertain whether the agree to the other amendment so as to leave both secti&ns in Senate approves of a certain measure or methoo of valuation the bill. . for the purpose of applYing the tariff rates. It is adviSory. The · Mr. SMOOT. So that both ipvestigations may be conducted. information is to be reported to the Congress for its approval Mr. WALSH of Massachusetts. Mr. President, of course, my dr disapproval. discussion and the remarks of the Senator from Utah did not take into consideration the argument presented by the Senator The objects of both investigations, therefore, are practically from Mississippi as to the motive for recommending this identical. We have not heretofore been in the habit &f employ amendment, and I assume there will have to be a roll call ing two separate governmental age~.cies to make the same upon it. - character of investigation; but if the Senator from Nebraska feels that the Tariff Commission could not be trusted to make Mr. SMOOT. Certainly. the investigation provided for in the House bill, I certainly Mr: WALSH of Massachusetts. I think the suggeE=tion of the shall not make any objection because of the additional eost. Senator that if one section is incorporated i,n the bill the other should also be included is a very happy one, and it is agreeable That is all it involves-additional cost and -addition~ labor. to me. · I think, however, that if the Tariff Commission undertake t& Mr. SMOOT. Personally, so far as motive§ are concerned, i: do this wor~ it will take up most of their time for a good long have only the motive of seeming the facts so that the Senate while, and that they will not have much time to do anything may act intelligently. else. I was very anxious for them to get to work preparatory Mr. FESS. Mr. President, I want to ask the chairman of to furnishing the Congress with the information required in the the committee or the Senator from Nebraska whether the in amendment which we adopted yesterday ; and I should like to vestigation contemplated under section G42 would not likely be have their attention directed to that-it iS very important-and made by the Tariff Commission by dli'ection of the President? not diverted too much to these investigations. Mr. NORRIS. Under the law he could have it done in that Mr. NORRIS. Let me ask the Senator, that being true, is way or he could use some other method. it :uot an additional reason why we should not put this addi Mr. FESS. So that he could avoid duplication if it were tional burden on the Tariff Commission, but should let this necessary? investigation· be made by somebody else? Mr. NORRIS. So far as I am concerned, I wish to say that Mr. SIMMONS. No; it is not, because if the Tariff Com I do not object to duplication. This is an extremely important mission get information that will enable them to make a report matter for future years it seems to me. If the Tariff "Commis under the amendment of the Senator from Pennsylvania, I will sion makes an investigation along their line and th6 President call it, then the same investigation will furnish them the in sets somebody else to work to make an investigation along a formation necessary to make their rec&mmendation under different line we would have before us both reports. If they section 642. agree it would add greatly to the weight .of the. suggestion, M.r. WALSH of Massachusetts. Mr. President, let me sug while if they disagree we would thresh it out and try to get gest to the Senator from North Carolina that the question of the best we could out of it. It seems to me it is a good thing . who shol}ld conduct this investigation is evidently a contro to provide for the two investigations. versial one; but we are all now agreed upon there being an Mr. SMOOT. Mr. President, I ask unanimous consent that investigation. I suggest, therefore, that the motion of the the committee amendment proposing to strike out section 642, Senator from Utah be agreed to, and later in the discussion of Investigation of methods of valU4tfon, on page 476~ be dis the bill an amendment can be proposed providing for an in agreed to. vestigation· by some other body. ~172 CJONGRESSION AL RECORD-SEN ATE OcTOBER 3 . ' . Mr. SIMMONS. I thank the Senator for the suggestion, but of the committee ·unanimously decided that the Congress should I am not particularly concerned about it. I would just as soon ha-ve the :final say, and not the commission. When the com have it" made as provided in the House bill, if it is desired to mission makes these t·ates in its report and presents them to adopt the House provision as an additional method of investi- the Congress, any importer or any manufacturer or any consumer gation. . . may come before the committee at its hearings and bring out Mr. HARRISON. 1\fr. President-- the very point that the Senator from Mississippi has just ~hown, The PRESIDING OFFICER. Does the. Senator from Utah if it has occurred. yield to the Senator from Mississippi? l\Ir. HARRISON. I am glad that the majority members were Mr. SMOOT. Yes; I yield. so generous as to give the Congress a right to pass c,n the l\Ir. HARRISON. Of course, I can understand the reasons matter and the Finance Committee a right to consider it, because why the majority members of the committee adopted the dates I can not believe that any member now on the Finance Com from July 1, 1927, to June 30, 1929, to get information as to mittee could think that there is any possibility of passing any prices in this country, and so forth; but it does seem to me that such legislation as that. I think the vote yesterday would if the matter goes through in that way, and the commission repudiate any such idea. works out the ad valorem rates on that theory, in applying the Mr. SMOOT. After that, Mr. President, I am quite sure the rates carried in this law we shall be leaving out of the question Senator from Mississippi is ready for a vote. the increase in the prices of these domestic articles by virtue Mr. HARRISON. I do not think the information is going to of the increases carried in the rates of the bill; and if the be worth anything. I think it will be padded. information is to be accurate it seems to me that it ought to Mr. SMOOT. Mr. President, I ask to have the question put apply to the future rather than to the past. on my request for unanimous consent. . 1\Ir. SMOOT. Mr. President, if it applied to the future the Mr. KING. Let it be stated. importer could do the same identical thing, and more than The VICE PRESIDENT. The amendment will be stated. likely would do it, because the local manufacturer gets all he Mr. SIMMONS. What amendment is it, Mr. President? can for his goods anyhow, and competition brings down the Mr. SMOOT. It is section 642. price so that it can not be any higher than the market -value. Mr. SIMMONS. All right. 1\Ir. HARRISON. Does the Senator contend that these in creased rates are not going to increase the prices in a great The CHIEF CLERK. On page 476~ the committee proposes to many instances? strike out lines 4 to 19, both inclusive, in the following words : Mr. SMOOT. In some instances, yes; perh~:~. ps. In others SEc. 642. Investigation of methods of valuation: The President is they are not. requested ( 1) to cause a survey to · be made, by such agency or agencies Mr. HARRISON. Why would it not be ·better for the Con as he may designate or appoint, of bases for the valuation of imported gress to act on this matter after it gets the facts as to prices merchandise for the assessment of customs duties, particularly with a and how these rates affect those prices, rather than for us view to determining the extent to whic~ values in the United States just to put an estimate on the old prices by virtue of the new may properly be used as a basis for the assessment of customs duties ; rn~? . and (2) to submit to the Congress, at the earnest practicable date, a Mr. SMOOT. That investigation will be made and the prices report thereon, with such recommendations for legislation as he may at the principal port of entry will be taken, and the American deem advisable, including such formulre as he may propose for adjusting ·valuation will not be based upon one concern; it will be based the rates of duty imposed by this act to con!orm to any change in basis upon the regular price at which the article is offered for sale he may recommend. There are hereby authorized to be appropriated in the principal markets in the United States. such sums as may be necessary to carry out the provisions of this · l\lr. EDGE. Mr. President--· section, to be expended in the discretion of the President. 1\!r. SMOOT. Another thing: If we pass the bill with this provision in it, just as soon as the investigation begins the im The VICE PRESIDENT. The Senator from Utah·asks unani porters could raise their prices and say, " These are the prices; mous consent that the committee amendment be rejected. Mr.e KING. Mr. President, after that has been done, if it here is the invoice, ·and here is what you must base the duty shall be· done, I should like to suggest an amendment to section upon," and it would not be fail~. Therefore, we ·put it at a time 642. • ·when nobody knew that such legislation would be proposed. 1\!r. Hl\.RRISON. But it is bound to involve·· an estimate Mr. SMOOT. Will the Senator let that rest until we get 'when it is done in that way. · through wi~ the committee amend~ents, and then offer his Mr. SMOOT. It would in any case. · · amendment in its regular order? AU we are doing at this time Mr. HARRISON. No; it would not in any cnse. If we put it is just to put back the House provision. We shall offer no ·in the future, we would have the absolute price 'that was charged amendment; but when the bill is open to amendment, let the in this country. Senator then offer his amendment. Mr. SMOOT. Oh, yes; and that price while the investigation The VICE PRESIDENT. The Chair will state to the junior is on may be higher than it otherwise would have been. Senator from Utah that the provision will be open to amend Mr. HARRISON. The Senator may thmk, then, that his ment hereafter. ·rates are going to carry prices higher than I supposed they The question is on the amendment of the cqmmittee on page would, if he thinks they can skyrocket prices in that way. . . 476. - . . . Mr. EDGE. Mr. President-- The amendment was rejected. • The PRESIDING OFFICER. Does the Senator from Utah Mr. SMOOT. Mr. President, we now revert to page 335, sec yield to the Senator from New Jersey? 1 · tion 340; and I hope that amendment now will be agreed to. Mr. SMOOT. Yes. The VICE PRESIDENT. The amendment will be stated. Mr. EDGE. Is it not reasonable to assume, in response to the The CHIEF CLERK. On page 335, beginning with line 11, the 'Senator's inquiry, that if ·the conversion were to be made on committee proposes to insert : the prices in the future, importers might naturally work out SEC. 340. Domestic value-Conversion of rates: (a) Conversion ot a temporary plan to have the selling prices as high· as possible rates by commission. in order to reduce the duty? They might well try to .corner ·(b) Report to Congress by commission. ·or control the market, or to do anything legitimate iil .order (c) Da.ta to be furnished by Secretary of Treasury and Secretary of ·to make the permanent duty lQwer. So we are certainly very Commerce. · much better off, if we are going to have a conversion and a (d), Definitions. comparison, if we base it upon prices that have prevailed during ·a time when there was no special tho_ught or signiftcan~ at Mr. SIMMONS. Mr. President, J>efore a vote is taken on tached to valuation or a campaign for a change in valuation. this amendment I Should like to ask the Senator from Utah a Mr. HARRISON. Might we not also suppose, then, that those question. Does the Senator from Utah think it absolutely nec

gentlemen on the Tariff Commission who a:re so-called super essary to retain in his amendment subsection (b), line 24 1 page ·protectionists ·might-try to find the price between 19.27 and 1929 · 336? It reads as follows : · that would give the greatest amount of ad valorem duty? (b) If such or similar Imported merchandis-e Is not so offered for sale Mr. SMOOT. This will be a report from the commission. I in tbe United States, then an estimated value- think there is a balance there that will regulate any condition like that. . And so forth. Mr. BINGHAM. Mr. President, will the Senator yield? . Mr. REED. - Mr. President, that is done in every European The PRESIDING OFFICER. Does the Senator from Utah country wherever the article now being imported bas not been yield to the Senator from Connecticut? previously traded in in the market. Mr. SMOOT. · I do. Mr. SIMMONS. Where there are no importations· and never Mr. BINGHAM. The very· point just mentioned by the· Sena have been?. -- .. . t - - • • - • • tor 'from Mississippi was the reason why the majority members Mr. REED. Where there never have been any· importations. 1929. CONGRESSIONAL RECORD-SENATE .4173 . Mr. SIMMONS. And therefore ·a rate is fixed by estimate, Mr. REED. When Marshall Field & Co. go abroad and buy based upon the possibility that some importations may some things, they go abroad because they can buy cheaper, and they time in the future be made? would not know whether they could buy cheaper or not if they Mr. REED. No, Mr. :?resident. When an article actually did not know what they could buy for here. arrives, if it is the .first of its kind, somebody has to estimate Mr. GEORGE. 0 Mr. President, I do not think the answer its value. -That is what is done in every country under every is worthy of the Senator from Pennsylvania. They go abroad tariff system. to buy things they do not buy in the United States. They ouy Mr. SIMMONS. The Senator thinks it is necessary under the 95 per cent, let us say roughly, of all their merchandise in the proposed scheme? American market, and about 5 per cent they can not buy here. Mr. REED. I think it ought to stand. I am not discussing the question of rates. If you want to Mr. GEORGE. Mr. President, I rise to disagree to the put an embargo on all imports, do it. If the rate is 50 per amendment as amended, because · I do not want to commit cent too low, raise it. I am simply asking you how you are myself to it. I believe the Senate is asked to do a perfectly going to apply this new p:~;inciple of domestic value when and if useless thing, to authorize a perfectly useless expenditure of you actually have converted your rates. money. I am equally confident that whenever the question is I am asking how are Marshall Field, Wanamaker, and Wool finallY presented to the Senate and debated out on its merits worth, with their many, many stores in the United States, to tl:.e Senate will reject the proposal. enter their merchandise? The proposal is wholly unworkable. The only thought the Under the law and under this bill, the man who brings in committee has had, apparently, is to consider the ease or the merchandise must enter it within 48 hours, excluding Sundays lack of ease with which the Government can collect duties. No and holidays, unless he gets written consent from the customs thought has been given to the citizen who desires to bring in officer for a longer time. If he does not enter his merchandise merchandise. within 48 hours, his goods are sent to the general store, and he Seven hundred thousand American citizens went abroad last must pay a dollar to a dollar and a half a case on ordinary year, as I understand it. Each of those 700,000 citizens, under merchandise additional for storage. the present law, is entitled to bring back $100 worth of mer How is the importer to enter his merchandise? I am refer chandise duty free. Under the proposed law they would be ring to the importer not in the sense that he seems to be entitled to bring back $200 worth Qf merchandise duty free. anathema to my brethren on the other side, because I am not When these 700,000 citizens return one by one, with their discussing rates. Let us say that Woolworth imports a large merchandise, they must go into the customhouse and declare order of china, of porcelain ware, and it is received at the port the value. .Are they going to look at their invoices and tell the at Seattle or San Francisco. How is he to enter that merchan customs appraiser what they paid for the merchandise? Not at dise, consisting, let us say, of a thousand cases or 5,000 cases? all. The proposal is to make a law that will wipe out the It arrives at San Francisco or Seattle. He is in New York. value of the invoice to the traveler. How is he going to enter How does he know \Vhat is on board the vessel? How can he his merchandise? He has to find out the domestic value of his know what is on board that vessel? He has had orders stand merchandise, when sold in the Amelican market, in the usual ing abroad perhaps for months and months and he does not wholesale quantity. He will be unable to do it. know what orders have been .filled or what merchandise has Heretofore the traveler has simply produced his invoice and been received, and he does not know what merchandise is on said " This is what I paid for my merchandise abroad. I board the vessel. ther~ore enter my merchandise at this value." The invoice How is he to know it? He may have a broker in Seattle or would be utterly worthless to him under the proposed law. San Francisco to telegraph him a copy of the invoice. The Mr. REED. Mr. President, will the Senator yield? invoice may consist of 500 pages, and a telegraphic copy would .Mr. GEORGE. I yield. be worthless to him, yet the broker in San Francisco or Seattle Mr. REED. Does not the Senator think he has chosen. a Iil ust, within 48 hours, enter the merchandise, and he must rather poor illustration, because at the present time, under the enter it not at the foreign value or th.e export cost, as under the present law, every traveler who enters his purchases at the present law, but he must enter it at the domestic value. ' retail price he paid is being charged too much duty. He is What is that? It is the value of that merchandise in the obliged to enter them at the foreign wholesale price. principal market of the United States, and that principal mar Mr, GEORGE. I do not think that is the present law. It ket may not be San Francisco ; it is not San Francisco in the may be the present custom. case which I am assuming. It may not be Seattle; it is not Mr. REED. It is the present custom and has been the Seattle in the case which I am assuming. He must enter the custom for years. domestic value; that is, the value of that merchandise at the Mr. GEORGE. I understand it is the custom, but I do not principal market of the United States when sold in the usual <;<>,ncede it is the law, and I have not chosen a poor example. wholesale quantity and under the ordinary condltions under The amendment will never become a law. You simply propose which such merchandise is sold. to burden the Government with additional expense. You simply Wool wm"th ·may be buying his china for his own stores and propose to break down the Tariff Commission with a work and for none other, and that particular china may not be sold in a labor that will require months and months if they do it the United States except to himself. How is he to enter that honestly and conscientiously, and I presume they would; and merchandise? Bear· in mind he must do it within 48 hours. you are not going to put your proposal into effect. He can not look at his invoice. That will do him no good, I have chosen a good example. .Seven hundred thousand because the invoice shows what he paid for it. He must estab American Citizens go abroad. If the proposal shall be enacted, lish an office in San Francisco and one in Seattle, with all of each may briiig back $200 worth of merchandise duty free. the data and records in his New York office, if he continues to When they get into the customhouse they have to enter it. import his merchandise at all. Of course, I am taking the They have to say, "Mr: .Appraiser, this is the value of the case of an importer of a large volume of merchandise upon . merchandise." They did not buy it for sale; they did not buy the one invoice. it in the usual wholesale quantities. They do not know any Mr. President, if the duty upon any article is not high thing about what the American selling price of that article is enough, let it be made high enough. This is not a question of in the principal market, in the usual wholesale market, when duties. But if any merchandise is to come in, let us consider sold under the usual conditions of trade in the United States. the practical question, How can this scheme be applied? They have no way of knowing what the value of it is. I have thus far discussed merchandise that is usually sold, Mr. President, let us see f<;>r a moment how an importer is let us say, in wholesale quantities in the principal markets in going to .comply with the !aw. Bear in mind, we are not con the United States. But let us take the vast volume of mer sidering the justice or the injustice of a rate. We are not chandise that is made on special order, made for particular considering whether the rate upon a particular article is high houses, the vast volume of merchandise that is made to be used enough or whether it ought to be higher. But here is Wool in the United States, and never to be sold, either wholesale or worth, here is Marshall Field, here is Wanamaker, here retail. · are hundreds and hundreds of merchants who are importing Let us take the ordinary case of the American manufacturer, about 4 or 5 or 6 per cent of the vast volume of merchandise a manufacturer who buys his machinery abroad, special ma sold by them annually in the United States. How are they chines, specially made. Those machines are not made in the going to value their merchandise? Let us just look at the United States, nor are they sold in the United States. Be is matter. not importing the machines for sale ; he is importing the rna Mr. REED: Mr. President, does the Senator want an answer chines to be used in his own factory. now? His invoice will do him no good. Once merchancli.se arrives Mr. GEORGE. I would not expect the Senator to answer at port, within 48 hours the merchant must enter the mer the question right now. He may do so if he wishes to. I iun chandise, but his invoice will do him no good ; he must under stating why I am not committing myself to this proposal. take to ascertain, if he can~ ,not the value of that merchandise 4174 CONGRESSIONAL RECORD-SEN ATE OCTOBER 3 sold in wholesale quantities in the ordinary· course of trade in greatly increased, his difficulties so greatly multiplied, until it the principal markets, but of some comparable merchandise, will be quite impossible for him to import anything and there some .comparable ·machine, either in construction or us_e, and fore we will have an impediment here operating as a bar to then make all sorts of allowances. · · ~ imports just the same as a very high rate· would operate as If an American citizen is to buy anything abroad, if he is to a bar. be permitted to import any merchandise, why should he not Let me call attention t() another thing. Let us take the case bring it in with the least possible expense and annoyance con of the importer who receives a large order at port. Let us sistent with every just regulation enacted in order to insure the say he is a New York importer and receives his shipment in the collection of the proper duty upon that merchandise? · port at San Francisco. Let us say that the invoice consists 1\Ir. President, let us take another illustration. There is of 400 or 500 pages, as many of them do. I might bring here much steel imported into the United States, not to be used in an actual invoice . which consists of nearly 400 pages and con the form in which it is imported. It is not sold in the · m·arket tains s·omething ' like 5,000 items, because I have one in my in the form in which jt is imported. Jt is not sold in ordinary office at this time, listing more than 13,000 cases of merchan wholesale quantities in the prtncipal markets. It is imported dise in the one invoice. Here is the consular invoice. Let us to be used by manufacturers to make particular kinds of tools, say, to simplify the case, that the shipment arrives in New for instance; to make a particular kind of machine, for in York City, consigned t() Woolworth Co. in New York. In order stance. How is he to declare that? He· can declare it, of for the merchandise to be entered the domestic value must course by taking some comparable article, whether domestic be stated within 48 hours and not only a certified copy of the or imPorted, either in construction or use, and arrive as best invoice furnished, but a certified copy of the bill of lading he can at the basis on which he is to make his entry through must be furnished to the appraiser. Very well. It will cost the customhouse. Woolworth, in the case of a 5,000-page invoice or even a 500- Why are we doing a,ll this? It is because there is some under page invoice for that matter, with several thousand cases ot valuation. I agree with the Senator from Pennsylvania that if merchandise, for extra clerical expense a considerable sum of we make a true conversion of the rates we are not g()ing to money. What can he do with the consular invoice? It can raise rates. I agree that is not the motive back of it. But not even be separated. It can not/be split up and a portion why is it being done? It is simply because there is some under figured in one office and a portion in another office. It is valuation. Section 402 provides th~t the basis of the valuation against the law to separate the consular invoice in that way. is the foreign or export value, whichever is higher, if it can be Woolworth, under this provision if it should become the law, arrived at- to the reasonable satisfaction of the appraising would have to double and treble and in many instances multi officer. If he can not arrive at·it then the United States value ply a dozen -or more times his clerical force before he could is to be used. If that can not be established to the reas()nable enter his merchandise, although he is perfectly willing to pay satisfaction of the appraiser then we will take the production the rate of duty, whatever the rate fixed by Congress. cost and in some instances the American selling price, and so Mr. President, I have but briefly refen-ed to ~me of the rea forth. . sons why I personally am n~t going to support section 340. I If there is any difficulty in finding the foreign value under am not going to do it because it will involve an expense which the J1iw as it exists and as it is proposed to be reenacted in in my judgment is entirely useless. A burdeu will be placed section 402, if there is any difficulty in finding what the goods upon the Tariff Commission which will greatly overload the actually cost abroad in the fair m~rket S()ld. in the or:dinary commission as now organized. course of business to those who w1sh to bnng them m, the · Whatever rates American industry ought to have is decidedly appraiser may under section 402 go to the United States· value another thing, and we have every rate in the bill before us. or he may go beyond that to the cost of production or the Let us give the American manufacturers rates high enough to American selling price. So that the whole argument on the afford them ample protection measured by any standard. But question of undervaluation seems to me to fall to the ground. why hedge about the American citizen who finds it necessary to Then how are we going to get away from undervaluations by bring in anything from a foreign country, with embarrassing accepting the domestic basis? Will there not still be the same conditions, with burdensome restrictions, with conditions that undervaluation? Will not the importer undervalue just as now? no importer can comply with and at the same time continue to But it is said that we may more readily apprehend him, we imvort merchandise. may more readily intercept his fraudulent scheme and design. Mr. President, seetion 642 of the· House bill has already been I do not think we will. I think it will be found that there still reinserted by the Senate Finance Committee. I am satisfied exists the same opportunity and the same chance for under that the investigation made under section 642 will come to valuation. It may be found more convenient for the· Govern nau~ht Senators have not greatly interested themselves in ment to combat it. That may be true; but under section 402 this particular provision, but since 1789 this question has been as it -now reads if the appraiser can not find the foreigJI' value a question before the American Congress every time a tariff bill or the export value and take whichever is higher, he may go has been under consideration, and every time it has been re to the United States value. If the United States value can not jected by Democratic Congresses and Republican Congresses be established to his reasonable satisfaction he may go to the alike after the First Congress. There is a substantial reason cost of production or the United States selling price. That is for it. Safe~ard the present system further if it is necessary all we need in the law. Then it is simply a matter-of adminis to do it in order to prevent fraudulent undervaluation and tration. make it easier for the American Government to collect the duties Senators on the other side of the Chamber know, and the which it may exact on importations; but under the system the country knows, that since the first tariff act, in which a form American citizen returning home or bringing into the country of United States value or domestic value or United States sell any article of merchandise has the simple and expedient means inO' price was used, there bas been a long controversy about of knowing what his merchandise co&t him and of presenting the what basis should be taken upon which to base the ad valorem facts to the customs officials and clearing his merchandise with rate of duty. Senators know that in 1795 we got away from out such unnecessary burden and such unnecessary delay and the basis that section 340 seeks to reestablish, and that since unnecessary expense.· 1795 we have remained away from it: I want to say why, in The VIOE PRESIDENT. The question is on agreeing to the my opinion, it is desired at this time. amendment as amended. In the first place, those who really believe in embargoes and Mr. REED. Let us have the yeas and nays. who do not want any competition-! do not mean Senators, but Mr. SIMMONS. I do not see any necessity for having the manufacturers-want the American valuation. This is the long yeas and nays on the amendment. est step in that direction they could of course take, and therefore Mr. HARRISON. Mr. President, I suggest the absence of a they are willing to take it. The only practical advantage they quorum. will have is this: If the present rate of duty is 50 per cent, let The VICE PRESIDENT. The clerk will call the roll. us say, based on foreign value, when they have converted it to The Chief Clerk called the roll, and the following Senators the domestic value the rate may be only 23 per cent, and that answered to their names : will not sound so high, and it will be quite possible hereafter Allen Connally Glass Hebert greatly to increase that rate without disturbing the country or Ashurst Copeland Glenn Heflin disturbing or agitating anybody in the country. That is one Barkley Couzens Golf Howell Bingham Cutting Goldsborough Johnson possible reason. Black Dale Gould Jones The other possible reason is the desire that, whether he be a Blaine Deneen Greene Kendrick Blease Dill Hale Keyes private citizen traveling abroad, an American manufacturer who Borah Edge Harris King must have something from abroad, or an ordinary importer Bratton Fess Harrison La Follette who falls under the condemnation of all of those who do not Bro-okhart · Fletcher Hastings McKellar Broussard Frazier Hatfield - McMaster believe that any imports should be admitted into the United Capper . George Hawes McNary States, the importer will be so embarrassed, his expenses SQ Caraway Gillett Hayden Metcalf 1929 CONGRESSIONAL . RECORD-SENATE 4175 Moses Reed Steiwer Walcott bill as reported. Save for the bipartisan character of the com Norris · Robinson, Ark. Stephens Walsh, Mass. Nye Robinson, Ind. · Swanson Walsh, Mont. mission the President is left unrestricted in making the appoint Oddie Schall Thomas, Idaho Warren ments, the qualifications of the appointees being subject to his Overman Sheppard Thomas, Okla. Waterman discretion, and, of course, to the judgment of the Senate. Patterson Shortridge Townsend Watson Phipps Simmons Trammell Wheeler Mr. NORRIS. Mr. President, I am not prepared at the pres Pine Smith Tydings ent writing-! do not know that I could be at any future date Pittman Smoot Vandenberg to offer an amendment as to the qualifications for members of Ransdell Steck Wagner the Tariff Commission that would meet my idt-as of what the Mr. McMASTER. I desire to anounce that my colleague [Mr. members of that commission ought to be, and which would NoRBECK] is absent on acCount of illness. . . stand any chance of being adopted by Congress. However, the The VICE PRESIDENT. Eighty-nine Senators have an Tariff Commission, more than any other commission under our swered to their names. A quorum is present. laws, ought to be above suspicion, above prejudice, and abso Mr. REED. Mr. President, I rise to withdraw my request lutely nonpartisan in character rather than bipartisan. We for a yea-and-nay vote on the pending amendment. have a great many commissions in the Government and we The VICE PRESIDENT. The question is on agreeing to the usually have qualifications provided such as the pending com committee amendment as amended. mittee amendment provides for, which make of the co~ssion The committee amendment as amended was agreed to. a bipartisan organization. I have always thought that that was l\1r. SMOOT. The next amendment to the pending blll will fundamentally wrong. be found on page 308, being section 330, providing for the or-. Mr. SIMMONS. Mr. President, may I interrupt the Senator ganization of the Tariff Commission. from Nebraska? . The VICE PRESIDENT. The amendment will be stated. The VICE PRESIDENT. Does .the Senator from Nebraska The CHIEF CLERK. In section 330, on page 308, line 5, before yield to the Senator from North Carolina? the word "commissioners," it is proposed by the committee to Mr. NORRIS. I yield. strike out " seven " and insert " six " ; in line 9, after the word Mr. SIMl!ONS. Mr. President, there is much force in the " office," to strike out "no person shall be eligible for appoint statement which the Senator from Nebraska has just made, but ment as a commissioner unless he is a citiz~ of the United States, suppose we were to provide that the commission shall be non~ and, in the judgment of the President, is possessed of qualifica Pllrtisan, as the Senator thinks should be done. Does the Senator tions requisite for developing expert knowledge_of tariff prob not think, by virtue of the fact that the tariff is a very partisan lems and efficiency in administering the provisions of Pa:rt II question, we might expect the commis_sion to be appointed en of this title " and insert " not more than three of the commis tirely from persons who agreed w-ith the administration upon sioners shall be members of the same political party, and in the question of the tariff? · _ making appointments members of different political parties shall Mr. NORRIS. Yes, Mr. President; if we make a partisan be appointed alternately as nearly as may be practicable" ; on organization of the commission that can. be done, but, as l line 23, before the word " years," to . strike out " seven " and think I shall be able to show, any President of any political in~rt " six " ; and in line 25, before the WO'rd " years," to strike. party can accomplish that result and still maintain the bi out " seven " and insert " six," so as to read: partisan character of the commission. For instance, there was PART n.-UNITJ:D STATJDS TARIFF COMMISSION a commission-! have forgotten its name-:-whic~ the law pro SEc_ 330. Organization of the commission: (a) Membership: The Vided should. be bipartisan, and which was appointed after the United States Tariff Commission (referred to in this title as the "com presidential campaign in which -the Republicans succeeded iii mission ") shall be composed of six commissioners to be hereafter ap getting Palmer and Buckner to . run as gold Democrats. The polnted by the President by and with the advice and consent of the object of running them was to beat the free-silver De:rpocrats; Semite, but each member now in office shall continue to serve until his but they were Democrats, and the then Republican President successor {as designated by the President at the time of nomination) when he came to make appointments on a commission such as takes office. Not more than three of the commissioners shall be members the Tariff Commission and was required to appoint a Democrat of the same political party, and in making appointments members of picked one of that kind of Democrats . . _When Mr. Wilson was ditrerenfpolitical -parties shall be appointed alternately as nearly as may President and he had to appoint Republicans to commissions be practicable. · be always found a Republican who nad supported him for office (b) Terms of office : Terms of office of the commissioners first tak and appointed him as a Republican. So a partisan President ing office after the date of the enactment of this act. shall expire, as can always get partisans of his kind in the other P?-rty as well designated by the President at the time of nomination, one at the end as in his own party. I do not think that would make any differ of each of the first six years after the date of the enactment of this ence. The danger is that the law itself invites partisanship. act: The term of office of a successor to any such commissioner shall I remember that I was several years ago upon the Committee expire six years from the date of the expiration of the term for which on Banking and Currency, and at that lime, under the Wilson his predecessor was appointed, except that any commissioner appointed administration, we had pa8Sed the farm loan act. That act to fill a vacancy occurring prior to the expiration of the term tor which provided for a commission or a board and had this kind of pro It bis predecessor was appointed, shall be a~pointed for the re~inder of vision in it. was to be bipartisan, and the law provided that not more than three, as I remember, of the beard should such term. be members of one political party, President Wilson made the The VICE PRESIDENT. The question is.on agreeing to the appointments. I was on the committee to which those appoint amendment reported by the committee. ments were referred, and I shall never forget when we got be Mr. SMOOT. Mr. President, I will make a brief statement hind closed doors presumably to consider the qualifications of regarding the amendment and the changes it proposes. The the appointees, three Democrats and two Republicans, the com existing law-section 700 of the revenue act of 1916-provides mittee spent about an hour in discussing the politics of the ap for a bipartisan Tariff Commission of six members, appointed pointees. The fact was that the Democratic members of the by the President, by and with the advice and consent of the committee were not satisfied with the Democrats ; they were Senate, for terms of 12 years. By virtue of the Welch Act the not partisan enough ; and the Republican members of the com salary of the commissioners is now $9,000 a year. mittee were not satisfied with the Republican appointees. Not The House bill provides for a new commission of seven mem one word was said about the qualifications of any of the men bers, nonpartisan in character, and no person is eligible for ap except as to their politics. The Democrats wanted men who pointment as a commissioner unless he is a citizen and possesses were more partisan in their political beliefs, and so stated. qualifications requisite for developing expert knowledge of tariff One of the appointees I remember perfectly, because I was problems_ and efficiency in administering matters with which very well acquainted with him; he was a national ebaracter; the commission is concerned. The terms of office under the and I think a fine man, who was appointed as a Democrat. House bill are seven years, except that staggered terms are pro But a Democratic member of the committee said, " He has not vided for the original new appointees. The salary of the com been a Democrat half the time; he votes any ticket he wants missioners is increased to $12,000 a year. to ; he does not hesitate to scratch his ticket at any time." So The amendment proposed by the committee, just as the Hous~ the Democrats did not like his appointment. _ _ bill, permits an entirely new commission to be appointed by I shall never forget that in the Republican cloakroom the the President, by and with the advice and consent of the Senate, Republican leader of the Senate at that time was discussing: prior to the expiration of the terms of the :present members. with some other Republicans the very men who had been However, the committee amendment, just as the existing law, appointed as Republicans, and about whom I have been talking, keeps the membership of the commission at six and retains the whose nominations came to the Committee on Banking and Cur bipartisan character of the commission. The committee amend rency. I shall_never forget the judgment that was rendered ment proposes terms of six years for the commissioners, except after the debate took place in the cloakroom between several_ that the original new appointees will have staggered terms. Republicans and the Republican leader in this organization, The increase in salary adopted by the House is retW-ned in the and he ~d, "We ought to see to it that the Republican mem- 4176 CONGRESSIONAL RECORD~EN ATE OCTOBER 3 bers of that board are the kind of fellows that will stand up date. It was displaced by the self-~inder; and I will never and fight for our part of the patronage that goes witb the forget when that machine came in. board." That was the judgment of a great Republican states I remember that in the country where I lived the poorer class man! of people for about 10 days or 2 weeks every year had a The law itself invites that kind of partisanship when it real harvest, and that was when they harvested our wheat. We directs the President to appoint members representing a party got $2 a day, and we looked forward to it from one year to on a. tariff commission. Some of the best qualified men who another. It was the only time when we got that much wages. ever lived in our country really had no politics, did not care The self-binder put us out of business, and many people were anything about either political party, and if you had asked them discouraged on account of it, and thought they were ju tifi.ed in to which party they gave allegiance they would have said, "To destroying self-binders. I remember that in my neighborhood no party." They stand no show of being appointed. The best the first one that came into the country was burned up after qualified men, it seems to me, would be men who are economists, it was operated one day; but this man who had invented the who are scientific students of governmental questions; and as Marsh harvester thought he had perfection,. the last step that a rule you do not find those men very partisan. They do not could be taken in the harvesting of wheat. He kept on manu care and they do not know anything about practical politics; facturing and putting his money into the business after his but the appointment of such a man would not give satisfac machine. was about to be driven out. I have been told by one who tion, because, just as that leader said in that room, the partisan represented to me that he was well acquainted with the inventor party leaders want men who will see that they get part of the of the Marsh harvester that he said to him, " Your machine is patronage that is coming to them, and will fig.ht for it if neces going to be put out of business by something better"; and the sary. That is their idea, and that is the partisan political inventor replied, "They never can improve upon this machine. machine idea all over the country. It is the end. We can not make a machine that will tie a I should like to see in this bill, in the particular provision knot." I remember that that used to be the expression of the that we are now considering, an amendment of this kind fellows who were working in the harvest field, and were not adopted. While perhaps it could not be strictly and definitely afraid of the new binders that it was said were coming out : enforced, I should like at least to express in the law the judg "You never can tie a knot by a machine"; but it was done, ment of Congress that the President, in making these appoint and I am told that the man who invented the Marsh harvester ment , should give no consideration whatever to the political died a pauper because he insisted on going on after the world beliefs of an appointee; that he should select economists accord had gone on beyond him. ing to their qualifications to carry out the work provided for I think that of these men who say, "This has always been in the duties of the Tariff Commission as defined in the law. in Ifolitics. It always will be partisan. It never can be any As a practical proposition perhaps that would be chiefly thing else." That is buncombe. The wish is father to the directory to the President; but it would at least give a President thought. We have been truggling, from the very beginning of who wanted to have the right kind of a Tariff Commlssion a the Tariff Commission idea, to take the tariff out of politics. law to stand on and back up his judgment, so that when the Everybody wanted to take it out. The economists want to take clamor came to him from partisan sources to pay political debts it out. Everybody except the machine politicians wants to by putting political favorites upon the Tariff Commission he take it out now; and I think we can take it out if we will pass could at least point to the law and say, "It is my duty to do the right kind of a law. otherwise." It would at least help a President who wanted to We adopted an amendment yesterday that, in my judgment, give us a tariff commi~ion that was fair and that was com- will go further toward taking the tariff out of politics than petent to do the work. . any other one step that Congress has ever taken. It ought to Mr. President, while I do not know that I shall take occasion be taken out. Everybody concedes that it would be better if it to do it now, at some time before the consideration of could be taken out. For that matter, every student must con this bill is finished I want to give to the Senate my idea as to cede that anything that is now in politics will be better if it is why it was on yesterday that the amendment we agreed to on taken out of politics. When we get to a higher grade of legis the roll call was adopted by the Senate. These things eventually lation, they always say, "There is no politics in this. It is above come home to roost. You can not commit an economic error pOlitics." Why not take the tariff out, and put that above or crime or wrong without having the result of your action show politics? somewhere at some time. We have had seven years of adminis I think we can take another step toward doing that if in this tration of a law governing a tariff commission that I think particular proposition we will put in an amendment that will will bring the blush of shame to historians in the future who give notice, at least, to every President of the United States are our descendants; and it is because of what I believe to be who shall follow, while this law is on the statute books, that it an entire misapprehension of the duty of the President that the is his duty in selecting members for the Tariff Commission, first, sentiment of the country gradually, although, I say, very to pay no attention to politic&-let it be stated in so many slowly-too slowly-manifested itself yesterday in the vote that words--and, second, to select men who are economists, men was taken here; a vote, really, of condemnation of the seven whose selection is made entirely and solely upon the basis of years of administration of that law, when it was undertaken their qualifications to perform the duties laid down in the tariff to make a political cat's-paw of an organization that ought to act; and if these tariff commissioners perform their duty there stand above and clear of all partisan politi.cal influences. I will be no place for politics in their official capacity. There is have no doubt that if there had been a fair administration of not any place for it in their official duty. Nowhere is there a the law in the appointment of commissioners who would fairly place where partisan politics of any kind should interfere with and honestly try to carry out the spirit of the law instead of the performance of that duty. making them instrumentalities of a partisan political machine It is their duty in the main, as far as tariff matters are con there would have been no such vote; or, if there was a vote, cerned, to find the difference in the cost of production, and to there probably would have been no such result as took place make other investigations, not on a party basis, not for the yesterday. purpose of helping this party or that party; and yet that is Now, we have come to consider the qualifications- of these what the President has been doing wit!). our Tariff Commission commissioners. Men say, " Why, this has always been a party most of the time during the last seven years. He has entirely question." The Senator from Indiana said in a controversy perverted its real duty; but in any particular item-take any with me a few days ago on the floor of the Senate: thing you please--if they are called upon to recommend a rate to Congress based on the difference in the cost of production at It has always been partisan. It always will be partisan. We can not home and abroad, where should politics come into that? Should help it. theii judgment be biased in order to help a political party, in Mr. President, I remember what happened in the great agri order to help one President who might want a high tariff or cultural West several years ago, after we had advanced from another President who might want a low tariff? If they per the cradle to the self-dropper, and from the self-dropper to the form their duty, must it not follow as night follows day that self-rake, and from the self-rake to what was known as the they must give no consideration to such questions as these? Marsh harvester, and then the self-binder, all of these machines That being true, why, then, should there be any politics in being used in the harvesting of wheat. I remember when the the Tariff Commission? If we want a fair tariff bill, if we Marsh harvester came on the market. It was a machine by are trying to ascertain the difference. in cost of production at which two men, standing upon the platform of the machine, home and abroad, is there anything involved in solving a bound the wheat that was cut by the machine. It cut in two, question of that kind that differs fundamentally from the duty at least, the number of men that were employed to take care of of a judge sitting upon the bench to decide a case according to the wheat as it was cut in the harvest field. the evidence that has been produced before him? Must he give I understand that the man who invented the Marsh harvester more weight to a Republican's testimony and less weight to became immensely wealthy on account of that invention; but that of a Democrat? Must he go quietly behind closed doors he lasted only a few years. His machine soon went out of and consult the Democratic leader or the Democratic machine 1929. CONGRESSIONAL RECORD-SENA_TE 4177 politician before be can render a decision? We would all con Mr. NORRIS. It would make a logrolling, political machine demn such things as that. of it. Why should we not condemn them when the same thing is Mr. TYDINGS. Mr. President, will the Senator yield? done by the Tariff Commission? A case in court may involve, Mr. NORRIS. In just a moment. Why not say· in the Jaw perhaps, $200 between individuals, but a case before the Tariff that it is the intention of the law to have this commission Commission may involve the cost of living of every man, woman, absolutely nonpartisan, and the President, in making nomina and child in the United States. The effect of its judgment tions, shall select men entirely disregarding their political be crosses the theshold of every home. Then why should we liefs, basing his judgment entirely upon their ability fearlessly, select a commission that would render its judgment on a par honestly, and judicially to carry out the provisions of the law? tisan basis? Mr. McKELLAR. I am frank to say that I should be happy If there ever was a tribunal, if there ever was a, court, if to support an amendment so providing. I think a commission there ever was a commission which ought to be nonpartisan it is so constituted would be an improvement upon the present plan. tie Tariff Commission. Mr. NORRIS. I think I will offer such an amendment before I hope that before the consideration of this bill is concluded we get through, if somebody else does not. this particular provision we are now considering will be amended Mr. MoKELLAR. Certainly it would be an improvement so as to carry out, as far as the Selll!te can, the ideas I have upon the present plan. suggested. · Mr. NORRIS. I yield to the Senator from Maryland. Mr. President, the committee amendment now be-fore the Sen Mr. TYDINGS. Mr. President, I am sure the Senator from ate provides that- Nebraska has made out a very good case, and that his observa Not more than three of the commissioners shall be members of the tions are well taken, founded upon the sounde~t reasoning. It same political party, and in making appointments members of din:erent has just occurred to me that, as a matter of carrying his idea political p.arties shall be appointed alternately as nearly as may be into practice, the partisanship of the candidates might rather practicable. help to safeguard rather than to destroy his purpose. We all know that if there were no political limitations due to the I should like to see that amendment defeated. I am not sat practical side of politics, it would be quite natural for a Presi isfied with the House text, even if that is defeated. I think dent of either party to reward the men of that party, although the bill as it came from the House could be very much im they might also possess the other qualifications which the Sena- proved, and before the consideration of the bill is concluded I tor says the candidate should have. · hope some one having a, direct interest, who has looked into the It seems to me it would be possible to appoint five men of the matter more closely than I have, will propose an amendment type the Senator has mentioned, but who, nevertheless, would, that will make the commission absolutely a nonpartisan body. to some degree at least, possess partisanship, either Democrats Mr. McKELLAR. Mr. President, will the Senator yield? or Republicans. If it were possible to get men who had no Mr. NORRIS. I yield. partisanship whatever, the ideal situation would be attained, Mr. McKELLAR. Does the Senator think that can be done but I am frank to state that perhaps most men have enough in this country? As I recall, when we have had a Democratic partisanship in them so that to get such members would be President, we have had on the commission three low-tariff difficult. commissioners from the Democratic Party, and three low-tariff Mr. NORRIS. Mr. President, let me suggest a name. It was commissioners from the Republican Party, and when we have President Wilson who appointed Professor Taussig, did he not? had a Republican President, we have had three high-tariff Mr. McKELLAR. He did. Republicans and three high-tariff Democrats upon the Mr. NORRIS. Let me ask my able friend from Maryland if commission. he knows the politics of Professor Taussig? It has occurred to me, that method having failed, that a better Mr. TYDINGS. No; I do not. method would be to provide that the President shall appoint Mr. NORRIS. Does he know anybody who does? Does be three commissioners who earnestly and sincerely stand for a not agree that he was an absolutely good man for that position? high protective tariff, and three commissioners who earnestly I do not know his politics now, but I remember, as I looked at and sincerely stand against a high protective tariff. Perhaps it, at least, he made a moqel in· a position of that kind; and the that might be a way of getting what we all want to obtain, country has thousands of Taussigs who could be picked. the honest judgment of a bipartisan commission. Mr. TYDINGS. I did not mean to say that under certain Mr. NORRIS. Mr. President, I have great respect for the conditions certain Presidents would not carry out the Senator's Senator from Tennessee and his judgment, and I have often idea. What I intended to say was the converse of that, that followed him. I think, with a grea,t deal of satisfaction and other Presidents would be so partisan that what the Senator perhaps improvement in myself, but I could not agree to that was attempting to safeguard would really be destroyed. kind of an amendment. It seems to me that it would be jump Mr. NORRIS. That might be. ing out of the frying pan into the fire. We would be suggest Mr. TYDINGS. I wanted to make the observation that per ing, then, ourselves, by the law, that the commissioners should haps the party qualification would not be without some merit, become partisan, that one man should be put on it because he provided it were coupled with the other qualifications the Sena represented the Republican Party, and another man because he tor has set forth. represented the Democratic Party, something they ought to Mr. WALSH of Montana. Mr. President, will the Senator forget. Why not, when we come to select members of the yield? Supreme Court, provide in the law that the Supreme Court shall Mr. NORRIS. I yield to the Senator from Montana. be composed of 9 members, not more than 5 of them members Mr. WALSH of Montana. The reference made by the Senator of one political party? Why have we not done such a thing as from Nebraska just a moment ago to Professor Taussig gives that? point to the observation I desire to make, that if the political Mr. McKELLAR. The Constitution provides otherwise: qualification were entirely removed, and the President, in his Mr. NORRIS. Does the Senator think we would do that even selection, considered only the other qualifications of the men if the Constitution permitted it? for the particular positions, it is to be borne in mind that the Mr. McKELLAR. I doubt it. tariff is a controverted question altogether outside of the realm Mr. NORRIS. I do not think so. of politics. There are many people in this country who have Mr. McKELLAR. I do not think so. But the thought occurs no particular political affiliations, who are perfectly well known to me that frequently the very best legislation has been secured to be advocates of very high tariff rates. There are other men through compromise between representatives of the Democratic who are equally indifferent to political considerations who are Party and the Republican Party, having entirely different views, convinced that that is all wrong. right here on the floor of the Senate. I have known that to It would be possible, then, for the President to select the very occur frequently where the Democrats on one side striving for highest type of men, and yet men whose predilections would be one thing and the Republicans on the other side striving for a altogether the one way, and the most natural thing in the directly contrary object have met together and secured the world for the President to do would be to select men with pre very best kind of legislation, there being partisans on both sides. dilections approximating his own. So that while the present Mr. NORRIS. In my judgment we would not get anywhere if situation is deplorable enough, if the qualification in the stat we had that kind of a commission-- ute were removed we would simply put it in the power of the Mr. McKELLAR. Neither am I prepared to say that we President to appoint members of thi~ commission all of whom would. would be inclined one way. Mr. NORRIS. A commission evenly divided. It would be . We realize that here in this body Senators discuss a subject come a l0grolling proposition, as Congress has been in the con from their particular point of view. Those who engage in the sideration of every tartif bill we have passed in the days gone by. controversy are entirely honest, desirous of presenting the thing Mr. McKELLAR. That may be true. fairly, but a Sen~tor on one side will ignore certain facts 4178 CONGRESSIONAL RECORD-SENATE OCTOBER 3

deemed by him to be entirely unimportant, while the importance Doctor TAUSSIG. I think so. The important thing is that the mem of them will be very pointedly set forth by a Senator who takes bers of the commission should be of a judicial frame of mind and 1 a different view and has different predilections about · the think it contributes toward impartiality of statement 1f ther~ is no matter. · overweight of the commission, one way or the other, with persons I think it would be of rather doubtful propriety to remove having opinions upon general questions. all regulations, so that all members of the commission would not be disposed to look favorably upon one side or the other That same line of inquiry was pursued from time to time dur side of this highly controverted question of economics, as well ing the h?arings, and a large number of witnesses, some of as of politics. them havmg been me~b~rs of the Tariff Commission, were :Ur. ROBINSON of Arkansas. Mr. President, will the Sena asked to express an opm10n based on their experience as to tor from Nebraska yield to me? the best means of securing a balanced commis ion, one which 1\lr. NORRIS. I yield. would on the whole thoroughly reflect a reliable conclusion Mr. ROBINSON of Arkansas. The subject which the Senator conce~ing facts under investigation. I think, without a single from Nebraska is discussing is one of great practical difficulty. e~ceptiOn, the answers were. to the effect ·that while the ob;k">C I am in hearty sympathy with any amendment to the law that twns stated by the Senator from Nebraska-and some of them will be calculated to make the Tariff Commission what it was were stated in the hearings-in here in the selection of the com originally intended to become; namely, a more or less scientific, miss!oners, the f~ct. remains that the best means of securing fact-finding body. a balanced commiSswn, the best way of making certain that This subject was entered into very fully by the select com partiality will not pre\ail in the findings of the commission is mittee of the Senate to investigate ·the Tariff Commission, to maintain it as ~ bipartisan body. ' which also investigated the operations of the flexible-tariff Many arguments, of course, can ·be made in opposition to such provision. The same committee which made that investigation a conclu~ion. Nevertheless, if we leave -it to the Executive to went into the question of the best means of constituting the select w~thout .regard whatever to partisanship, the inevitable Tariff Commission, and during the course of that investigation, result w11l be m the long run that partisanship will dominate recognizing the undoubted integrity and exceptional ability the commission, notwithstanding the fact that the provisions demonstrated by Doctor Taussig when a member of the Tariff of the law declare it to be the duty of the Executive to ignore Commission, and also in his writings, he was asked to express questions of partisanship. his opinion on this subject, and if it will not disturb the Senator The practical method for selecting tariff commissioners for from Nebraska, I would like to read into the RECoRD at this selecting all public officers appointed by national admini~tra point his statements and conclusions concerning the matter. tions, is well known to Senators. With no intention of criti 1\Ir. NORRIS. I yield for that purpose. cizing any Executive or of making any comparisons among Mr. ROBINSON of Arkansas. On page 3 of the hearings Execut.ives in .this particular, let it be remembered that always before the select committee to which I have referred the follow there IS the mtensest pressure to secure the appointment of ing appears : partisans to office. The President himself is always the head Chairman ROBINSON. Have you made a study of the question as to the actual leader, of a great political organization. Whether bow a fact-finding tariff commission may best be constituted with re he be a Democrat or a Republican, he necessarily is affected by spect to the partisanship or nonpartisanship of members of the com those influences which emanate from the party organization. mission? The result will be, if a Republican is in power and he is in Doctor TAUSSIG. The provisions of the act of 1916 seem to be as well structed to ~ppoint scientists without regard to partisanship adapted as provisions can be to that end~ You are aware what those that in all probability there will be presented to him the name~ provisions are. of scientists who belong to the political party with which he Chairman ROBINSON. That provided for a bipartisan commission? is affiliated. If we place no restriction in the law with respect Doctor TAUSSIG. Yes; a commission no more than three members of to partisanship, it can hardly be expected that the President which sbould be of any one political party. will override those influences which always approach the White Chairman ROBINSON. At least, it was intended not to be a partisan House when public offices are to be filled, that he will reject body? considerations of that character, close his eyes and his memory Doctor TAUSSIG. Tbat is correct. to partisan service and party loyalty, and go out into the Chairman ROBINSON. What, in your opinion, are the advantages of a unknown and the unexplored field and find some individual who bipartisan commission or of a nonpartisan commission over a strictly has no politics and who has no political influence supportinO' partisan commission ? him. b Doctor TAussiG. Well, the facts should be stated clearly and impar It would be the most wholesome thing conceivable if a scien tially, without selection. A commission which is made up of representa tific process would be employed that would assure the selection tives of any one side might be under some suspicion, perhaps, of of experts who possess sufficient practical experience to compre selecting the facts. hend fully the application of the principles which they enter Chairman RoBINSON. From a scientific standpoint, would a member tain; it wo~ld be a highly efficient service to the United States. of the commission who is an adherent to the theory, for instance, of a But there IS not one of us who knows how public offices are high protective tariff, necessarily differ in his conclusi{)ns as to the facts filled who would expect any President to ignore our suagestion from another member of the commission who was an adherent of an or the suggestion of the national committee or of a st:te com opposing theory, for instance, a theory of tariff for revenue only? mittee. We could not expect any President to put behind hiin Doctor TAUSSIG. Of course, he could differ as to his conclusion from all the influences which made and maintain him and select the facts. some unknown or unsuggested instrumentality for the perform Chairman ROBINSON. But I mean as to what constitutes the facts. ance of the duties of tariff commissioner. Let me explain my question .a little. I do not think I have made my From a practical standpoint, therefore, those who have studied self very clear. Does the fact that the commission is constituted in the question feel that fairness and impaiiiality will be pro the way the act of 1916 provides, namely, that not more than three moted . by bala·ncing the commission so that not more than one membet·s shall be members of the same political party, necessarily imply half the number of its members shall be affiliated with any one · difficulty of agreement and functioning on the part of the commission political organization. · · when it comes to determining the existence of facts? Does it make it It is true that the provision can be evaded and it is true hard for the commission to function when we say that not more than that in the past the best appointments possible 'under the exist three members shall be members of the same political party? ing law have·not always been made. Certainly there have been Doctor TAussiG. Not necessarily. I think much more depends on the cases in which members of the Tariff Commission have been character and judgment and perhaps the individuality of the members appointed whose previous affiliations and relations rendered them of the commission than upon the circumstance that they should lean of doubtful value or capacity to serve on that particular body. toward one particular political party or the other. But if we eliminate from the law all questions of qualification Chairman RoBINSON. In scientific theory the facts would be the same or eligibility respecting partisanship we will accomplish in all no matter to what theory the tariff commissioner adhered? probability what we are seeking to avert or to avoid. We will Doctor TAUSSIG. Yes; but you must bear in mind that all of the have a partisan commission with no balance to it, with no facts are a very complicated mass. They must be reduced to some representation upon it with respect to the conflicting theories sort of order and, it you please, generalization, and summation, and which from the beginning have prevailed concerning the sub that process necessarily involves judgment. It is not merely an auto ject of the tariff. matic process of setting forth the facts. The question is one of very great difficulty. 1\len like Doctor Chairman ROBINSON. Your conclusion, after experience and continued Taussig, who, of com·se, have no political or partisan motives study of _the subject, is that a tariff commission, to be highly· useful to ,in exp1·essing the opinion that a bipartisan commission is best the United States, should be bipartisan, or at iea8t should not be com ,UJ:!der alL the circumstances, have uniformly. come to the con posed entirely of the members of one party! clusion that the safest method to be pursued is to follow that 1929 CONGRESSIONAL RECORD-SENATE ~ 4179 contained in the act of 1916, although admittedly it is imperfect he passes, but in the case of members of the Tariff Commission and at times has worked very badly. they not only pass upon the facts but they select the facts upon I thank the Senator from Nebraska for his courtesy in yield which they will pass. ing to me. In this connection I should like to suggest that one of the Mr. TYDINGS. Mr. President, will the Senator from Ne determining factors was that if the commission were partisan braska yield to me to enable me to ask the Senator from Ar or one-sided they obviously could not get all of the facts as kansas a question? to the cost of production in all of the factories in the United The VICE PRESIDENT. Does the SenatO'r from Nebraska States. The selection of the plants where they will obtain yield to the Senator from .Maryland for that purpose? information as to costs is a matter of very great importance. Mr. NORRIS. I yield. Se11ators may conceive of a case where Republicans as com Mr. TYDINGS. Would it not help to obtain better men for missioners, believing in a high tariff, would select all the ineffi the commission if, in retaining the bipartisan nature of it, the cient plants from which to compute the cost of production. other qualifications stated by the Senator from Nebraska were That would be the kind of facts they would select. The com inserted in the law, defining the qualifications they should have, missioners representing the other side would probably select the length of their experience and so on; that is, instead of hav all of the most efficient plants from which to gather the facts ing it broad, make it more definite in that respect? and their conclusion would mean a low rate of duties. : Mr. ROBINSON of Arkansas. Perhaps the standard of the Mr. NORRIS. Would the Senator think that a commis personnel of the commission should be improved. I have always sioner who was doing that was performing his duty according felt, in view of controversies which have arisen during the last t~ the real spirit of the law? Would the Senator take that seven years, that the law ought to provide expressly that no course if he were a member of the commission? · commissioner having a personal interest in the result of an Mr. COUZENS. I should probably not. investigation before the commission should be permitted to Mr. NORRIS. Of course the Senator from Michigan would participate in that investigation. The Congress adopted that not. view, I think following a suggestion which I had the honor to Mr. COUZENS. But that shows the .. advantage of having make upon the subject, by incorporating it in an appropriation political rivalry of some kind in the commission. bill. It may be true, and I believe it is true, that the ,provision Mr. NORRIS. Let us consider the question o_f political riv can be improved by adding to it certain requirements with re alry. We will say that we have a Republican President who spect. to the qualification of members ; but I do not believe it is a high-tariff. man. I am not speaking of any particular indi will be improved by removing the requirement of bipartisanship. vidual ; I am merely taking a President, a high-tariff President. Again I thank the Serra tor from Nebraska for his courtesy in He is appointing members to fill the Tariff Commission. The yielding. contest that the Senator has suggested and that everybody else Mr. NORRIS. Mr. President, I want to say a few more words has suggested who believes in a bipartisan commission is be- on the question involved here. I was not quite through when tween bigh-tariff men and low-tariff men. It would be better the Senator from Arkansas asked me the question which be did. to put it that way than to say Republicans and Democrats. [Laughter.] Here is a high-tariff Republican President ; he wants a high Mr. President, there is no such thing as a bipartisan board tariff commission. He can not appoint more than three Repub that is non-partisan. There may be a partisan board when licans and there are three Democrats, let us say, whom he will there is nothing said in the law about it. I concede that the select. If he is a Republican who does not care about anything President of the United States avoids the real spirit of the law except the achievements of his own party and he wants to in making the appointment, but when we make it bipartisan get results out of the commission favorable to a high protective by law we invite the President in making the appointments to party, what does he do? He selects the high protectionists out make them on a partisan basis and we invite the members of of the Republican Party. · the commission, after they have been appointed and confirmed, Then he goes over to the Democratic Party, and does he have to act on a partisan basis. In other words, we put up the par any trouble to get a high protectionist there? Not a bit. He tisan prize and dangle it before them. We induce also political picks men who are recognized as Democrats who believe in a bosses, political machines, political alleged leaders, to engage tariff that shall touch the very i::ky. He has completed his in every contest in making recommendations for membership on tariff commission. Could he do any worse if they were all Re the board, because it is partisan and they often recommend publicans or all Democrats? He has accomplished his result, men becau e of their partisanship and the work they have done if he is that kind of a man and wishE's to bring about that kind and will do for the party rather than to recommend men who of result. So I say that where th!!re is a provision for a bi have peculiar qualifi.cations for the office to whicb they are partisan board U is only an invitation to do the very thing about to be appointed. that in spirit at least we are trying to avoid in the law. I do not believe there can be any question about those state MESSAGES FROM THE PRESIDENT , ments. I believe that history demonstrat~s what I have stated Sundry messages in writing were communicated to the Sen to be true. ate from the President of the United States by Mr. Latta, one We have as to our courts no suggestion about politics in the provision for the appointment of judges. All judges of the of his secretaries-. courts below the Supreme Court of the United States have been INFLUENCE OF CHEMISTRY AND AIRPLANES ON WORLD PEACE provided . for by statute of tne Congress, and there is not any Mr. RANSDELL. Mr. President, in view of the coming visit thing said in those statutes in regard to the party affiliations of of Premier J. Ramsay MacDonald, I wish to intervene briefly the appointees. Men are supposed to be appointed to those posi in the tariff debate to say a few w:>rds about w<>rld peace as tions for their judicial temperament and ability. Professor affected by chemistry and the airplane. Tau sig,· in the testimony which the Senator from Arkansas A remarkable address by Mr. Francis P. Gai'van, of New York, read, supported that theory. He said, it is true, that he thought head of the Chemical Foundation, and consistent supporter the existing law which then provided for a bipartisan board was of chemical- science and chemical industry in the United States, the best that could be obtained, but he further said that, after was delivered by him at the Minneapolis meeting of the Amer all, the prime thing to be considered is the judicial tempera· ican Chemical Society on the 11th of last month, at which time ment of the appointee, and I also submit, Mr. President, that he was presented with the Priestley medal, the highest honor that is the prime object. the society can bestow. President Langmuir. before presenting So far as I am concerned, I do not care if a judge be a Demo the medal, explained its significance. It was founden to perpet crat or a Re.Publican if he has the judicial point of view. Jn uate the memory of Priestley, discoverer of oxygen and the first the Judiciary Committee, of which I have the honor to be chair great chemist in America. Awarded only once in three years man, there is very seldom in the case of judicial appointments for outstanding service to the science of chemistry, but two im a suggestion made by members of the committee as to the poli pressions have previously been strur.k-one for Ira Remsen in tics of the nominee who has been selected by the President. The 1923, and another for Edgar F. Smith in 1926. question is regarding his qualifications and not his politics. President Langmuir alluded to the unparalleled way in which This particular board ought more than any court or other board Mr. Garvan bas advanced the cause of chemistry in America in the country to be above and beyond partisan politics. by his support of chemical education, of scientific publications, Mr. COUZENS rose. and of scientific investigation, and stated that in spite of the Mr. NORRIS. Mr. President, I yield to the Senator from work already accomplished the service he bas rendered is still Michigan. more important from the standpoint of what has been started. Mr. COUZENS. I desire to suggest to the Senator the differ Mr. Garvan first became known to ".hemists through the estab ence between the selection of a judge and the appointment of lishment of the Chemical Foundation, and has ~tood by it any member of the Tariff Commission consists in the fact that through the various legal battles from which it emerged com a judge does not select the information or the facts on which pletely triumphant and designated in court decl~ions as an 4180 CONGRESSIONAL RECORD--_SENATE, • 0CTOBER '3 organization approaching the relations of a trustee in regard SECOND RANDOM THOUGHT to the protection of the American chemical industry and an aid We all know chemistry also as the friend or" peace, the source of vast to its continued progress. industries, the more important source ot health-giving, health-protecting . In his addl·ess entitled'! Random Thoughts of a Lay Chemist," discoveries. -Side by side with chemistry stand the other sciences Mr. Garvan emphasized three points-and to this I invite the physics, b!9logy, and medicine. If the politicians would give to research very careful attention of the Senate: (1) That modern chem in chemistry, in the other sciences, and in medicine a fraction of the istry and modern aeronautics have made war impossible; (2) huge cost of navies and armies, created to destroy life and prope!'ty, the that immense progress could be made if a fraction of the cost world would see discoveries of the greatest moment to the weH-being of preparedness for war could be devoted to further scientific of its people. Such discoveries as the cause aQJl cure of cancer, of research; and (3) that it is the duty and responsibility of every cures for tuberculosis and other ills of mankind would be accelerated; chemist to educat_e every citizen to the tremendous importance discoveries would be hastened which would multiply even the present of chemistry in further improving the conditions of human life. wonqerful services of electricity and o.tber forms of power and make Among other things, he said : life .easier and nobler even for our present generation. Ttie Chemical I bt>lieve that modern chemistry plus modern aeronautics has made Foundation stands ready to bear all the expense o! any commission war impossible. I am convinced that in case of modern war between the President may care to· appoint to inquire Into the vast possibilities great powers it would be foolish and useless for a floating battleship or of cbernistry as an agent of peaceJ outlawing war by its terrorr, advanc cruiser to leave its dock and for an army to take the field. The com ing health and prosperity by its humane discoveries. mon people of the world, as well as our wisest rulers, President Hoover . THIRD RANDOM THOUGHT and Prime Minister MacDonald, realize the horrors of war and of its Why this state of affairs? The failure of a realization of personal tremendous wastage of life and of the means of living. They are responsibility not only by men in power but also by you chemists and bending every effort to safeguard the peace of the world by treaties by us lay chemists who include every man, woman, and child in the and by agreements. Should not the terrible powers of chemistry, as we land. What an appalling and universal thing is personal responsibility! know them, and its war messengers, the aeroplanes, on sea and on Jeanne d'Arc, stanching the hearts of the lads of France hundreds land, strengthen their hands? Should not the dread possibilities of of years after her dea.th-Pasteur, saving the lives of endless genera chemistry support the convictions of the common people, that there tions unborn-Henry Ford, and his great discovery that Christ was shall be no war of the future and rule out the politicians and the the greatest economist and the golden rule the most enlightened, self greedy who are aiming to defeat these high purposes? ish, business principle. No more will labor be exploited. Soon no We an ·know chemistry also as the friend of peace, the source of vast longer will it be good business to exploit the trust funds of the widow industries, the more important source of health-giving, health-protecting and orphan. Never again will China or India be exploited. It has discoveries. Side by side with chemistry stand the other sciences dawned ·that they might all be consumers. physics, biology, and medicine. If the politicians would give to research Not only for Trotski and l&nin but also tor the bankers who in chemistry, in the other sciences, and in medicine a fraction of the financed their trip from America and Switzerland to Russia- huge cost of navies and armies, created to destroy life and property, 300,000,000 of peoples and centuries of consequences-what an eternal . the world would see discoveries of the greatest moment to the well measure of personal responsibility! The· examples are endless. None being of its people. Such discoveries as the cause and cure of cancer, more pointed and helpful than the occasion of this presentation. It of cures for tuberculosis an!} other ills of mankind would be acceler means that you think that, situated as I was in public life and in ated; discoveries would be hastened which would multiply even the private life, in wealth and in mental attainments, I, in some measure present wonderful services of electricity and other forms of power, and at least· tried to meet my responsibility to my God. AU right. Coui.d make life easier and nobler even for our present generation. I have done so without your enlightenment as to the importance of chemistry? Some of you ~ met your responsibility and I get the medal. I ask unanimous consent that there may be printed at this In America before the war, no one guessed the true relation of chemistry point in the RECORD the entire address of Mr. Garvan, to which to modern life except you chemists. In Germany chemists had taught I have referred. ~ its importance to every man, woman, and child. German chemists The PRESIDING OFFICER (Mr. . JONEB in the chair). Is had met their personal responsibility, you bad not met yours. However, there objection? The Chair hearB none, and it is so ordered. when the war came you awoke and happy the American people ever will The address referred to is as follows : be in that awakening. But your work is not done. - Mr. President, members of the American Chemical Society, ladies, and It is your duty and personal responsibility to make every man, woman, gentlemen, three years ago I broke ~own. · So~e say_that breakdown was and child in America a lay chemist who realizes as I do what chemistry the result of my endeavors to establish independent and sufficient can do for man. And you will--each will seek to share· with me the chemical education, chemical research; and chemical industries in . joy of serving and, if lucky, suffering, in that glorious struggle against war, ~ disease, and poverty. · America, not only to insu're otir own national he~lth and our national well-being but, if God was willing, to give of our youth and our genius On behalf of Mrs. Garvan, fo whom in simple justice I must transfer this medal, and on behalf of my six {!hildren, I thank you again from to the peoples . of the world that we may ~essen the chances of war and raise the standard of living throughout the world. I hope that endeavor the depths of my heart. For I interpret your presentation to mean was the cause of my breakdown. But, at any rate, for three years I that "we all" can feel at ~:me with "you all,· in your patient sacrifices have not been able to give my all to the cause. . I have done what I in search of truth, .- that perhaps you- will feel like telling us of your needs and burdens and giving us the chance to help and feel ourselve!J could . or what my loving guardians .would let m~ do, and now I am part . tlie great you- aie..-to do for Glory of God. . promised that in the fall, if no upset comes, I can return to you and to a. iii wo~ks th~ our cause on full time. PACKERS' CONSENT DEORFE Therefore, though my vanity called me to this meeting, I felt it would Mr. COPELAND. Mr. President, in connection with the re not be square to you and our cause to enda~ger in the least my full quest of the meat packers to modify the consent deciee the recovery. statement I hold in my hand is of great interest. It was made Now, coming in person and having been notified of your radio limita by Representative EMANUEL GELLER, of the tenth congressional tions in time, I can astutely and safely say I had prepared an address district of New York, and I ask unanimous consent that it may worthy of you. However, in additi~n to thanking you for the greatest be printed in tbe RECORD; . honor of my life, I will only set down crudely·two or three of the -random ~ · There being no objection, the statement was ordered to be thoughts I hope some day to clarify. · printed in· th~ REcoRD, as f?llows : FIRST RANDOM THOUGHT • 0PPOS~TION TO THE PACKERS' CO-NSENT DECREE Can the development of American chemistry do anything for the peace (r THE LEOPARD CAN NOT CHANGE ITS SPOTS JJ of the world? I believe that modern chemistry plus modern aeronautics The so-call~.d "four big packers,'~ formerly the "five big packers,'.' bas made war impossible. I am convinced · that in case of ·a modern war are old otiend~rs . . The leopard ~oes not change its s~ots. ~bey nre no between great powers it WOUld be foolish and ';lSel~SS for a floating dilf'erent tf>·day t~an back in 1890, , when a committee of the United battleship or cruiser to lea·ve its dock and for an army to take the field. States. Semite, aft.cr two years of investigation, unanimously reported The common people of the world, as well as our wisest rulers, President t_hat there was even .tb,en a~ "-greement am,ong th.e leading packers Hoove~ and Prime Minister MacDonald, realized the h-orror of war a.nd Armour, Cudahy, Morris, Swlft, and Wilson-in restraint of free com (ff its tremendous wastage of life and of the means of living. They are petition. The Senators said, among other things, that there was abso pending every etiort to safeguard the peace of the world ..by treaties lute proof of collusion in regard to the fixing of prices and the division and by agreements. Should not the terrible powers of chemistry, as we of territory for business. know them. and its war messenget·s, the airplanes, on sea and on land, The conditions revealed by this senatorial investigating committee strengthen their bands? Should not the dread possibilities of chemistry were, in part, responsible for the passage of the Sherman Antitrust Act support the convictions of the common people that there shall be no of July 2, 1890. war of the future and rule out the politicians and the greedy who are . Despite this antitrust law, the big packers formed the so-called Vt>eder aiming to defeat . these high purposes? . poor, nam~d for ~h~ir lawyer,' and maintain~d it, in violation of the Jaw, 1929 CONGRESSIONAL RECORD-- SENATE .4181! from 1893 to 1896. The said Veeder pool was revived in 1897 and was No Governinent can lightly condone these otrenses by modifying tho revamped in 1898. They penalized the members of the pool for over decree, which in a sense was the punishment for these wrongs. shipments, and again divided the territory to restrict competition. Armour, Cudahy, Morris, Swift, and Wilson produced and dis· · ·As a result of an investigation made by the Department of Justice, tributed over 600 commodities. They went from albumen to yellow the pool was terminated in 1902, but only after the Department ·of Jus· corn ; from beans to tallow ; from perfumery to pickles ; from souse to tice had filed sweeping charges of conspiracy an.d restraint of trade spaghetti ; from foot powder to tripe ; from Georgia hash to snuff con• against the 'big packers and asked for an injunction. tainers ; from gin fizz to violin strings. They reached out for mastery in · A permanent fnjunction was issued in the United States Supreme an directions; u· mattered not whether the commodity bore a direct or Court against the packers on May 26, 1903. most remote relation to meat or meat production. Little respect was ·paid, however, to this United States Supreme This great meat-packing indru;try, with its tremendous capital be Court Injunction, because the ink 'of the decree was hardly dry when hind it, should -not be again permitted ruthlessly to control, directlt, three of the members of the group-Armour, Morris, and Swift or indirectly,· the manufacture and distribution of all these commodities. secretly set to work to buy up as many of their competitors, with the If they are given the power of retailing, they would not only manufacture object of forming a gigantic merger, to the end that they might mo- these 600 commodities but would distribute them as well. All lines ot nopolize almost completely the entire meat industry. . business would be atfected. If the decree were modified now in any one Were it not for the approach of the panic of 1903 this gigantic particular, in the not distant future it would be modified in all par· merger would have been consummated. However, the packers did ticulars. actually merge the properties thus acquired under the name of the The retail merchant is encompassed now by the hardest and fiercest National Packing Co. competition from the chain groceries and the chain retail meat shops; These same packers soon thereafter formed the American livestock from the mail-order houses now coming into the retail field, as well as pool, whereby there was a merger and division of livestock purchases from the branch retail dry-goods stores. He would no longer have a among the five big packers ; and by this division the farmers were chance for his business life if the big packer could enter all these mulcted out of large sums of money by receiving only meager prices retail fields. for their livestock, while the consumer, on the other band, had to buy The packers argue that it is necessary for them to be able to retail at extortionate prices. in order to compete with the chain grocers and butchers, since these But not content with domestic control, they sought international selfsame chains are now in the packing business and do their own mastery of production and shipment of beef and mutton in conspiracy slaughtering. But these selfsame retail chains would be no match for with certain British and South American concerns. the packers, who control the stockyards, the refrigerator cars, the huge It would take too long to set forth all the many machinations of cold-storage plants, and the branch houses for wholesale distribution these packers to the public detriment. throughout the country. These stockyards are strategically located all The consent decree, which was filed against them in 1920, and which over the country. There are over 30 of them in 30 different important they several times unsuccessfully sought to modify, absolutely precludes cities. Practically all of the animals destined for slaughter in inter them from retailing meat. But they cared nothing for this decree. state commerce pass through their stockyards. These yards are sources They have actually sold meat at retail. They have sold to hotels and of great profit and are a means of curbing competition. restaurants at retail through their branch houses which they have set In the report of the Federal Trade Commission on the meat-packing up all over the country. They technically maintain in defense that sell industry it developed that the packers owned 93 per cent of the total ing to restaurants is not selling at retail. It is difficult to understand of all kinds of cars used in the shipment of meat. The most imp6rtant what retailing is, if the sale of a half or quarter pound of sirloin steak ot these, from the standpoint of monopolization, are the refrigerator to restaurants is not a sale at retail ~ It most assuredly is not a sale at cars, and of these the packers owned, the report stated, 91 per cent. wholesale. In other words, the packers controlled the medium of transportation These packers have always snapped their fingers at court decrees. for 91 per cent of the fresh meats of the United States. Independent Their attitude has always been one of defitmce. The consent decree packers can not a1ford the heavy outlay for refrigerator _cars, and the required them to give up their stockyard interests. They have not chain retail meat stores would likewise be unable to provide refrigerator -done so. If they will not obey the mandate of the decree in its entirety, cars to compete with· the packers. . how can we expect them to obey the decree as modified. They are not Furthermore, the railroads afford the packers preferential treatment law-abiding. Indeed, the leopard does not change its spots. As late in the rolling of these cars. Their cars are carefully handled and -as the spring of 1927, a Chicago Tribune editorial called attention to promptly returned by every railroad; and they are only used for the " The scandal in the grain trade " in discussing the practices of the shipment of the packers' own commodities. The smaller independent Armour Grain Corporation·, and stated: , packers, who own a few refrigerator cars, have always complained of " Something more than condemnation is called for. The C()mpany discrimination against them by the railroads. There are always ex· and its officials stand accused not only of shrewd practices which ·men treme delays in the return of their cars ; six months for some of their of honor choose not to employ, but of gross dishonesty. The· difrerence cars from 3t. Louis to New York and return was not at all uncommon. is the difference between the brink and the abyss.'' To show how the packers exert influence upon the railroads, it is A leading Washington paper-March 9, 1927-stated editorially: notorious that all manner of liberties were taken with the refrigerator "Chicago has-been bit by a scandal that hurts worse than gunman cars owned by the independents. For example, their beef cars were -terro-rism, ' - • • It is publicly a.nnoanced by Edward E .. Brown, used for the shipment of onions. •vice president of the First National Bani{ of Chicago, whose word is We have no proof that the packers, if permitted to modify the decree, accepted by any Chicago business man, that the Armour Co.· was guilty would refrain from these practices. On the contrary, the demeanor of of plain thievery in its dealings with the Grain Marketing Co. the packers throughout these latter years has been one of open defiance ".As a result of the findings of Mr. Brown, the Armour Grain Co. was to law and disregard of decrees of the court. compelled 'to ·pay the Grain Marketing Corporation $3,000,000." EMANUEL CELLER, · · The Chicago Tribune-March 4, 1927-stated: Repreaentative Ten.th Congressional D-istrict of Ne10 York. "The financial brunt of the decision fRlls upon J. Ogden Armour, Philip D. Armour 3d, and Lester· Armour, who own about 85 per cent ANNIVERSARY OF THE BffiTB OF GEN. WILLIAM CRAWFORD GORGAS of the stock in the Armour Grain Co. Mr. COPELAND. Mr. President, to-day is the seventy-fifth " Frank D. Crombie, superintendent vf the Northwestern Elevator, anniversary of the birth of Gen. William Crawford Gorgas. I testified that at the times covered, 'at the direction of Georgf E. Thomp hold in my hand a reference to him made by the Gorgas Me son, general superintendent of the .Armour Grain Co., who had told him morial Institute of Tropical and Preventive Medicine, of Wash. he was acting on the instructions of Heorge E. Marcy-then president ington, D. C. I ask that the paper may be printed in the of that company-he changed the records of the elevator, though about RECORD. . 2,000,000 bushels of wheat had d'eteriorated.'" There being no objection, the paper was ordered to be printed The Federal Trade Commission reported that these packers used in the ;REcoRD, as follows : joint funds: To employ lobbyists and pay their unaudited expenses ; GORGAS--INTERNATIONAL HERO To influence legislative bodies; To-day, on the seventy-fifth anniversary of the birth of William Craw· To elect candidates who would wink at violations of law and defeat ford Gorgas, it is very fitting that people everywhere catch a fleeting those pledged to fair enforcement; moment and hold it long enough .to ponder on the achievements of the To control tax officials and-thereby evade just taxation: man whose ministry of science was an international boon. To secure modifications of governmental rules and regulations by The career of General Gorgas as a life-saver began when he went t~ -devious and improper methods; Cuba during the Spanish War to combat yellow fever. After hostilities To bias public opinion by the control of editorial policy through ad ended be remained as sanitary officer, and when he left Cuba in 1902, vertising, loans, and subsidies, and by the publication and distribution the island, which had been a focus of yellow-fever infection for more at large expense of false and misleading statements. ; than a century, was practically free of the disease. These charges were In part the cause of the consent decree. We have As sanitary officer of the Canal Commission he introduced a system· no proof that these causes have been removed. atic campaign for the destruction of the mosquito which virtual!:; 4182 GONGRESSIQ_NAL ~ RECO~D-SENATE OcTOBER 3 drove malaria and yellow _ fever fr.o~ the Isthmus .and cop.tt:i~ted Your. assistance in arranging the n::ttio_n-wide _celebration on 4prU largely to the completion of that dream of· two . centuries, th~ ]'a~f:Da 13, 1930, ·Win be deeply appreciated. Caq.al. It wal? Gorgas who took the Walt~r Reed t.heo.ry of the trans It · has been suggested that the foundation Invite. the governor ot mission of yellow. fever and gave it practical application here. JJy each State to appoint a religious freedom day committee. -The com· his .demonstration that the terrors of tropical pestilences may be ~lj.mi missioner of education, the presid-ent of the Federation of Women's ~ted, a new world of productivity was made available to the human Clubs; the leading member o.f ea'cii branch of the legislature, and an race. l outst"an(Iing representative of the Catholic, .. Protestant; and ' Jewish . . In 19J-4. Gorgas became Surgeon General of the Army and. during the clergy, together with several ~ther · leading citizens would, of course • World War he organized a system of strict physlcal examination _of all, constitute an admirable committee for' each governor tO appoint. military applieants. Under his supervision more than 7-,000,000 ypung , We hope that Congress may create an official commission to cooperate men were examined, of whom 4,500,000 w~re inducted into the service. with the Thomas ~Jefferson Memorial Foundation in the celebt·ation of Never before was a physically finer army. put upon the ~~ld of _batUEl religious freedom day and tha( 'the Pr~ident mfght b'e authorized to and never before was a body of troops kept in such e:x;cell~nt physical appoint such a commission. condition. G~neral Gorgas's direction of the health activities .of the The board of governors and the national educational committee of 4Jnerican Army during the World War alone entitles him to permanent the Th(uiias Je.J!erso~ Memorial Foundation will, of course, do every· gJory. . _ . thing that may be required to recommend suitable programs for the Et·ecting monuments of bronze and marble to heroes is wort~ _ w!llle ~elebration and in aid of the work of the rommissioh and of the only in that the markers help somewhat to perpetuate the. memory_ of various committees. ' · the individuals. The establishment of a great living memorial which - Trusting tha't these suggestions merit your approval, I am, ' undertakes :i program of health education and research-the two projects Very _sincerely yours. to which the life of Gorgas was dedicated-is much more fitting. This STUART G: GmnOXilY, Pt•esident. memorial, with headquarters in the N~tion's Capital, .Is striving to ca-rry on the ideals of Gorgas and to extend his life-saving policies of OCTOBER 3, 1929~ better personal health to all corners of the earth. President STUART G. GJBBONEY, . The program of health education is carried on through sever~l _me Thomas Jefferson Memorial Foundatio-n, diums-the press, the speakers' platform, the · radio, and through high . , 115 B,roadway, New York City. . .. school essay contests. Here a triple alliance of medicine, dentistry, MY D~.AR . MR. GIBBONEY: I haye read your letter of the 29th, settlllg and the laity is banded together to spread the gospel of the. teachings forth the plans of your ·foundation for·. a· proper celebration of religious of Gorgas to young and old, rich and poor-everywhere. freedom day on April 13, 1930. The research effort truly marks the type of memorial. suitable to _thi~ It would.. appear to .me that if the suggestion of yqur commission ls roan-the world's greatest. sanitarian. A Gorgas Memorial Laboratory carried out there can be no doubt about the success of the enterpris~ !las been established in Panama in which a concentrated and construc The proposal 'to invite the governor of each State to appoint a religiGus tive effort to outlaw disease is being made. It symbolizes the new freedom committee, to be made up as you have indicated, is very sig spirit of -international cooperation in the attack upon the universal nificant. Such a committee would represent every phase of religious enemies of mank.ind-dlsease. The United States Government, with its interest and would be the surest guaranty of not only a great com annual appropriation of $50~000 toward the maintenance and upkeep of memoration, but it would insure against any adverse criticism on any this project, has shown the way, and the Republic of Panama has very religious or racial liiles. I am strongly in favor of your proposal. generously given a beautiful building and t.he block of ground upon Yours very truly, ~Wch it stands to this work. Several Latin-American countries have SIMEON D. FESS. already contributed a' pro rata . share toward the upkeep of this labora tory, and the rest have indicated their willingness to participate in this A BILL FOR ESTABLISHING RELIGIOUS FREEDO!II :Way. Consulting boards !rom each country participating will be ap· SECTION 1. Well aware that the opinions and belief of men depend on pointed to aid the director in his work. - their own will, but follow involuntarily the evidence proposed to their The Gorgas Memorial Labo.ratory is, indeed, an international alli minds ; that Almighty God hath created tile mind free, and manifested ance to prevent disease-a true symbol of the service of the man whose His supreme will that free it shall remain by making it altogether work knew no narrow national boundaries, but was as i~partlal as the insusceptible of restraint ; that all attempts to influence it by temporal sting of the mosquito--the enemy. he routed. punishments or burthens or by civil incapacitations tend only to beget RELIGIOUS FREEDOM DAY-THOMAS JEFFERSON habits of hypocrisy and meanness, and· are a departure from the plan of tqe ~oly. Author of our religion, ·who being Lord both of body and mind, :Mr. FESS. Mr. President, it is generally known thro.ughout yet chose -nol to propitgate it by coercions on either, as was in ·His ilie country that there is in existence the Thomas Jefferson almighty power to do, but to exalt it by 1ts influence on reason alone; Memorial .Association, which has made great progress in the that the impious presumption of legislature and ruler, civil as well as restoration of the home of Thomas Jefferson. In view of the ecclesiastical, who, being themselves but fallible and uninspired men, fact that Jefferson was the author 'of the Virginia statute for have assumed dominion· over the faith of others, setting up their own religious freedom, this association proposes to celebrate re· opinions and modes of thinking as the only true and infallible, and· as ligious freedom day on the anniversary of the birth of J efferson such endeavoring to impose them on others, hath established and main· in 1930. The memorial association has recommended that the tained false religions over the greatest part of the world, and through governo~s of the States create State commissions, on which all time. That to compel a man to furnish contributions of money for shall be appointed, among others, representatives of various the propagation of opinioDB which. he disbelieves and abhors is sinful 'religious faiths. The association also hopes that Congress may and tyrannical ; that even the forcing him to support this or that see fit to participate in the celebration. This morning I re teacher of his own religious persuasion is depriving him of the -com ceived ·a ietter from the president_of the association, which I fortable liberty of giving his contributions to the particular pastor whose an'swered, together with some material which he inclosed. I morals he would make his pattern, and whose powers be feels most per ask unanimous consent that the correspondence and the in suasive to righteousness; and is withdrawing from · the ministry those .closures may. be printed in the RECORD. temporary rewards which, proceeding from an approbation of their per Mr. COPELAND. Mr. President, I was not able to hear dis· sonal conduct are an additional incitement to earnest and unremitting tinctly, the statement made by . the Senator from Ohio. It labors for the instruction of mankind; that our civil rights have no ·related to ,such an important subject, the commemoration of the dependence on om· religious opinions, any more than our opinions in ·authorship of the statute for religious freedom, that I hope the physics or geometry; and therefore the proscribing any citizen as un 'request also included the printing of the reply of the Senator worthy the public confidence by laying upon him an incapacity of being from Ohio. Was ·that included? Was -the request that all the called to office of trust or emolument unless he profess or renounce this correspondence should be printed? or that religious opinion is depriving him injudiciously of those privi Mr. FESS. Yes, Mr. President; it is all included. lPges and advantages to which, in common with his fellow citizens,· he Mr. COPELAND. I am very glad, becat}Se I think it Tery has a natural right; that it tends also to corrupt the principles of that important that it should all be included. very religion it is meant to encourage, by bribing with a monopoly of The PRESIDING OFFICER. Is there objection to the re worldly honors and emoluments, those who will externally profess and quest of the Senator from Ohio? The Chair hears none, and conform to it; that though indeed these are criminals who do not with it is so ordered. stand such temptation, yet neither are those innocent who lay the bait THOMAS JEF'FERSON MEMORIAL FoUNDATION, in their way; that the opinions of men are not the object of civil gov New York Cit y, September f9, 1929. ernment nor under its jurisdiction ; that to suffer the civil magistrate .Bon. SIMEON D. FESS, to intrude his powers into the field of opinion, and to restrain the pro Senate Office Builtlitl{l, Washington, D. 0. fession or propagation of principles on supposition of their ill tendency MY DEAR SE~ATOR FESS: I am very pleased to report to you that is a dangerous fallacy which at once destroys all religious liberty, the suggestion relative to religious freedom day was unanimously because, he being of course juuge of that tendency, will make his opinions adopted at our meeting. The general sentiment was very well expressed the rule of judgment, and approve or condemn the senti.ments of others in the letters from which we made the inclosed extracts. only as they shall square with or differ from his own; that it is time 1929 ~ Ct>NGRESSIONAL 'RECORD- ' SENATE 4183 · enough for the rightful purposes of civil ·goyernment for·u.s· officers to 'plagUe' ahd "dllstroy ·us ·unless humanity resolritel;yv sets its face towa"rd interfere when principles break out into overt acts against - pe~ce and the continental extension of the realm of the freedom of the mind . .. · good order ; and, · finaJly, that truth is great and will prevail'if left to ' "The Declaration of Independence may be forgotten and the Univer. herself; that she is the proper and· sufficient" antagonist to error, and · sity of Virginia may crumble, but as long as the principle of religious bas nothing to fear from the conflict unless, by hunm.n interp·osition, freedom remains vital and active Thomas Jelferson's service and name disarmed of her natural weapons, free argument and debate; errors will· be immortal." · · cffising to be dangerous when it is permitted freely to contradict them. Dr. John Grier Hibben, presiden~ of Princeton University: SEc. 2. We, the General 'Assembly of Virginia, do enact -that no man " I am in thorough sympathy and accord with your idea of emphasiz shall be compelled to frequent or support any religious worship; p:W.ce, ing in connection with the name of Thomas Jefferson the subject of or ministry whatsoever, nor shall be enforced, restrained, molested, or. religious freedom. We need in this country a new spii'it"of tolerance in burthened in his body or goods, or shall ·otherwise suffer ·on account of reference to all religion's beliefs and activities, and any effort ti:at will nis religious opinions or belief; but that all men shall be free to pro further this end is most desirable."• fess, and by argument to maintain, their opinions in matters of religion Right Rev. 'Ernest M. Stires, Episcopal bishop, diocese of Long Island: and that the same shall in nowise diminish; enlarge, or affect their "Bishop Stires is confined to his 'ro-om convalescing· from hav~ng his ctvil capacities. tonsils removed and bids me reply to yoi1r letter of June 11. He greatly SEc. 3. And though we well know that this assembly, elected by ·the regrets that absence from town will prevent his attendance at the people for the ordinary purposes of legislation only, have no power· to luncheon on June 26. He heartily approves of the suggestic-n that restuin the acts of succeeding assemblies, constituted "with 'powers equid Thomas· Jefferson's one hundred ' and 'eighty-seventh birthday, Aprii 13, to our own, and that; therefore, to declare this act to be irrevocable 1930, should ·be oBserved as religious freedom Sunday. He thinkS it would be of no effect in law; yet we are free to declare, and do declare, a 'very good idea." 1 that the rights hereby asserted are of the natural rights of mankind, Dr. Edwin A. A:lderinan, president University of Virginia: and that if any act shall be hereafter passed to repeal the present or "I am ·tremendously interested in the suggestion that Thomas Jeffer to narrow its ·operations, such act will be an infringement of natural son's one hundred and eighty-seventh birthday be observe<.l''as religioua right.-VIII 454; Ford Ed., II, 237.--(1786.) freedom Sunday. I think it always in the interests of progress and civilization that attention· be called to ·Jefferson's ·services in the inter [Extracts from letters received by the Thomas Jefferson Memorial ests of religious freedom, and that his great statute ·be ' read -and • ; ~"'oundatfon regarding the sug'gestion that· Thomas Je.fferson's · birth· reflected upon by men." ' · day, April 13, 1030, which date will bt: coiriciden~ with P~Im . S~nday Hon. Arthur S. Tompkins, justice, New York Supreme Court, former and Passover be commemorated as religious freedom d.:y] · Grand Master of Masons in the' State of New York: · · Ho~ ~ --SIMEON D. FEss, uriited States Senator "from Ohio': ' ·~ I _ think the suggestion that Jefferson's birthday be observed as religious freedom Sunday is a most excellent ohe. It is very appro _ " I fully approve of ~e plan you have in mind to observe_ April ~3 as 'religious freedom Sunday, with special reference to Thomas Jefferson. - priate that at least once a year the attention of people everywhere . This is not only .very appropriate but signifies a real present-day seryi$:e. should be drawn to the subject of religious freedom and the spirit of ?d~. Jefferson was quite sev-erely criticized by tlie less liberal minded tolerance and good will, and n·o other day of the year would be so o,n religi~u s matters, but with the. advance of religious thought even the suitable for that purpose as April 13." ·· strongly religious people are coming . to. recognize the importance of Hon. Robert W. Bingham, editor· and ·publisher of the Courier-Journal the pt·inciples of religious freedom. · ' · and the Louisville Times : "It "is an extraordinary coincidence that· Thomas "Jefferson's-"next "-My firm conviction is that in the Interest of religious progress Jefferson's position on religious freedom should be emphasi,zed, and I am birthday should coincide with Palm Sunday and the first day of the Passo.vet~. I think the suggestion to celeb-rate that day as. religious Slll!e you a.re dofng a real service when YOU lead - ~ this direction." aoo Hon. John S. Fisher, Governor of the State of ;pennsylvania : . freedom Sunday should receive cordial" support from all parts of the " I think the suggestion about observing reHgious freedom Sunday country. Should the suggestion· be adopted, as I hope it will, ·we shall on Jefferson's one hundred_and eighty-seventh" birthday_is a very happy do all we can here to help make the day worthy of the occasion and of . o,ne, and certainly . has my approval.", _ _ ,. _ the author of the statute for religious freedom." · · , Ron. George W. Wickersham, chairman National Commission C?D Law Ron. Norman S. Case, Governor · of the State of Rhode Island: Observance and Enforcement : · "Rhode Island will be glad to cooperate, so far as she is able, in the carrying out of the plans which you may care to approve for the . · "I de think that it is a very healthy 'thought to that sugg~st 'fh~mas foundation." .Jefferson's _one hundred and eighty-seventh birthday, April 13, 1930, Bon. Walter J. Kohler, _Governor of t~e State of Wisconsin: should be · observed as religious freedom ·S-unday. Perhaps Jefferson's " Religious freedom is an ·American · furidamen tal and I am in u ccord highest claim to the gratitude of posterity is· found in his authorship as to its vital importance." The observance which _you propos~ _ wotJld of the statute for religious freedom. It embodied ideals which should seem to be very. fittiiig." - . ' . . : . . . ; never be lost sight of. Jefferson gave expression to them "on more than · Dr. Heiny Louis Smith,' president Washington and Lee Unive,rsity: one occasion, but the statute which he framed P!lt inFo practical :to:.:~ " I must commend with all my heart every effort _niade _to honor . the principles which should ever be maintained as the v~tal principles Jefferson's memory, extend the reli~ous freedom he proclaimed, and .of_American life." , · make our R~public more and more worthy o'f the admirati-on and ·imita . Hon. Frank Allen, Governor of the State of Massachusetts: tion of the many nations and rac'es 'of our perplexed world who are " '.!;he governor sincerely regrets the fact that another engagement slowly struggling toward a wiser and freer civilization." · made some time a.go for June 26 pr_events his ~eing present. . He notes, · Hon. Lewis L. Fawce~t, 'justice, s·upreme Court of ·the State of New however, with great interest y~mr plans for the observance of the one York:· hundred and eighty-seventh birthday of Thqmas Jefferson, which is to "The ~uggestion that special tribute be paid Thomas Jeffersori on' the -.occur on April 13, 1930, and he wishes me to assure you, and through one hundred and eighty-seventh anniversary of his natal day in honor you, your board of governors, that he will be happy to- cooperate in of his authorship of' the statute 'for religious freedom, I believe, would making the celebration a sqccess." meet with unbounded "popular approval. _, ... Hon. Frederic Coudert, of New York : "Since you invite my views, let me suggest that a_ mass' meeting be "Surely it would be fitting to honor Thomas Jefferson, the author of held in New York City under the auspices of the 'Thomas Jefferson the statute for. religious freedom-a statute marking an epoch in . the Memorial Foundation; that at least three great c ·hristian men-I eug history of mankind. The success of our Republic bas been so largely gest Dr. S. Parkes Cadman, Patrick Cardinal Hayes, and Rev. Dr. due to this ft·eedom that the Nation could not overestimate Jefferson's Nathan Krass--address the assemblage and their addresses ·be ·broad services in this regard, especially at a time when this fundamental ·con c·asted through a nation-wide book-up; that the picture of Thomas -Jef cept of American public life and political principle seems to _be in ferson, with a brief sketch of his life and featuring the de"tails of the danger. E ternal vigilance must be the price of all our liberties, but Thomas Jefferson mass meeting and radio hour, be published in -the none is so important in the life of history as that of complete religious morning newspapers on that day throughout these United States." freedom." · Ron. Walter A. ·strong, publisher, Chicago Daily News:· Hon. Ralph Pulitzer, publisher ,New. York World: " It would seem to me that this plan wo"uld be very acceptable and " I heartily approve of the suggestion to have Thomas Jetrerson's could be used with much benefit to the public acceptance of th·e· pri.u- one hundred and eighty:seventh birthday observed as religious freedom ciples established by Jetrerson." · - · Sunday. It is an excellent idea." _, Mrs. Anthony Wayne Cook, honorary president-general, National Hon. John Stewart Bryan, president and publisher the News Leader, Society Daughters of .the American Revolution: of Richmond, Va., and former president of the American Newspaper "It seems a most fitting time for the celebration of Thomas Jefferson's Publishers' Association: . one hundred and eighty-seventh birthday, and to remind the world at "You have my hearty good wishes for the success of yourproposal large of Jefl:erson's authorship of the statute for religtous freedom to set apart Sunday, April 13, 1930, for religious freedom Sunday. particularly significant in this day of unrest and discontent." "AU the marvelous .advances that have been made in harness~ng the Ron. Adelbert Moot, vice chancellor regents of the University of the ~echanical and material forces for the service of man wlll turn to. ; State of New York: LXXI-264 4184 CONGRESSIONAL RECORD-43ENATE OcTOBER 3 " I note that :April 13, 1930, will be both Palm Sunday and the first Hon. Williatn Harman Black, justice Supreme Court of the State of day of the Passover. Such being the case, it · has been suggested that New York:· honor be done to Je1ferson, because of his authorship of the statute "I think the Idea of making Thomas Jeff'erson's birthday religious to:: religious freedom. Of course you are president of the Thomas freedom Sunday is a splendid one, because no man in American life Jefferson Memorial Foundation, and naturally your organization would . bas done more for that idea. be expected to stress the personal view of the matter. If the day can " Congratulating you on the splendid work you are doing in this mat- be observed as religious freedom Sunday, and the great benefits con ter, I am, with warm regards." '· ferred upon this country by religious freedom can be stressed by people Alexander B. Geary, ·Esq., member of the Pennsylvania bar: of a.ny and every denomination, and no denomination at all, then by "I have the utmost confidence in anything you suggest, and you may tall means let such benefits be stressed. Religious freedom Sunday therefore say that whatever you suggest bas my approval." 'is an admirable title for the day, and for stressing all that has followed Hon. David J. McLean, president and publisher the Brooklyn Citizen: that day for 187 years in this country. What would have been the •• I am in hearty accord with this plan and will lend all aid possible." condition of the people born in this country, or coming to this country, Ron. James A. Nugent, superintendent of schools of Jersey City, N. J.: in all those years without religious freedom is another story. There "The contents of your letter in regard to the celebration meets with are a few countries In which people have enjoyed religious freedom my approval. Our principals and heads of departments will make a during part or all of those years, but such countries are few, and in special etl'ort to make a success of religious freedom Sunday-April 13, most cases the freedom enjoyed has been more or less restricted, as 1930;" compared with the full religious freedom enjoyed in this country. Mr. Frank A. Gallagher, vice president the Bank of United States : " Of course the Catholics in Maryland, the Baptists in Rhode Island, " I am in agreement with the wishes of your board and wish you every and the Dutch In New York, not to mention others in other States, success." also had more or less to do with a greater measure of religious freedom Hon. Victor J. Dowling, justice supreme court, appellate division, of than was then common in the. world anywhere; but Thomas Jefferson the State of New York: is entitled to all the credit for preparing the great statute prepared "I think the suggestion in regard to the celebration of Thomas Jef by him, and tbe fight he made for its adoption. . That statute un ferson's birthday next year ts entirely appropriate." doubtedly Btands as a monument to his memory, and a monument to Bon. Harvey F. Remington, member of the New York bar and honor the merits of the cause embodied in the statute. If the whole matter ary president general Sons of the American Revolution: cas be so handled that the cause of religious freedom will stand fore "I thoroughly approve of the plan to celebrate the one hundred and most, and the memory of Thomas J efl'erson can be brought forward. eighty-seventh anniversary of Thomas Jefferson's birth and shall tie because be had the merit to appreciate, fight for, and help establish pleased to cooperate In any way that I can. Time only tends to the cause, well and good." strengthen the great regard of intelligent American people for the life Hon. Henry Horner, judge Probate Court of Cook County, Chi and services of this great man." cago, Ill.: Dr. S. H. Goldenson, rabbi the Rodel Shalom Congregation, of Pitts "I applaud your plan !or a nation-wide celebration of Jefferson's one burgh, Pa.: hundred and eighty-seventh birthday next year. The coinci~ence of the "The suggestion that the next birthday of Thomas Jetl'erson, which date with two important religious holidays is opportunity for _a country- . falls on April 13;· be celebrated as a religious freedom Sunday is a good wide appreciation of Jefferson's pioneer contribution to religious freedom one. That the same day, as you pointed out, will be Palm Sunday in the United States." 'and the first day of Passover, is a happy coincidence. The fact that the Hon. James M. Kieran, president Hunter College of the city of New various religious groups, as neighbors and at the same time, celebrate York: . their respective holidays, having roots in historical and theological dif "Anything that will advance the cause of real religions freedom inter ferences, may lend itself to the emphasis upon some of the overarching ests me very much, and I shall be very _glad to take what part I can in unities imd' mutualities." this work. From what I have already heard concerning your organiza- Mrs. J. Harris Baughman, fourth vice president National Society tion, I know that the m~tter is in good hands." . United Daughters of 1812 ': · · Dr. Chartes Moore, chairman CommiSsion of Fine Arts, Washington : "In regard to the board's wish that Thomas Jetl'erson's one hundred "Naturally, I am in sympathy with the project of a Sunday devoted · 'and eighty-seventh birthday, April 13, 1930, should be observed as to the c-ommemoration of Thomas JeffersOn's ideas of religious liberty." religious freedom Sur1day~ I think it · is a splendid suggestion, and ' Col. Jefferson R. Kean, of ,Washington': , , I · trust that they will meet with success in having their wish ratified. "The observation of Mr. Jefferson's next birthday as religious freedom I wlll always treasure being a life Monticellian.i' Sunday is a very appropriate and timely suggestion, fAlling as it. does Edmund J. Burke, Esq., member of the Massachusetts bar: on a holy day both of the Christian and Jewish churches." •• The suggestions in your letter concerning Sunday, April 13, 1930, Hon. R. G. Jones, snperintendent o.f schools of Cleveland, Ohio: seem 'to me very appropriate." «It· oceurs to me that your plan to observe the hundred and o~e Hon. Clarence H.· Dempsey, commissioner_of education of the State eighty-seventh birthday of Thomas Jefferson on April 13, 1930, would of Vermont: be very fi ttlng. "So far as general recognition of Thomas Jelferson is concerned, I "I am . ~ sympathy ~th that idea." . think it could be brought to the attention of the schools very well Bon. George Eastman,· president Eastman Kodak Co. : through our important magazines. I have no doubt that· most of the " I tb.ink it would be a fine thing to recognize J ell'erson's one hun superintendents in the country would be willing to plan for some observ dred and e(ghty-seventh birthday 'as proposed." ance of the anniversary in their localities. 11 this appeals to you, and Hon. James R. Shefileld, former ambassador to Mexico: if I may assist in this respect, I shall be glad to do so."' "I am in full sympathy with the suggestion that Thomas Jefferson's Hon. Albert H. F. Seeger, associate justice, supreme court, appellate b.irthday, April 13, 1930, be observed as religious freedom Sunday. division: I thhtk it a most favorable circumstance that Palm Sunday and the "I think it is an excellent plan to celebrate Mr. Jefferson's one hun first day of Passover should coincide with this date, thus giving' a dred and eighty-seventh birthday on April 13, 1930, and that it be peculiar stinificance to religious freedom." observed in the manner suggested. I hope the plan will be adopted." Hon. Mark Graves, tax commissioner, State of New YOJ;k: Miss Edith Edwards, chairman the national Monticello committee of "I am deeply and thoroughly interested In this movement, commend the National Society United Daughters of 1812 : the idea, ahd w·ould like very much to contribute toward its success. "Your idea concerning Thomas Jefferson's one hund!'ed and eighty My notion is that we _little appreciate the services Jefferson rendered seventh birthday is a splendid one." to this country." Hon~ Ganson Depew, president Sons of the American Revolution, Hon. Ernest W. Butterfield, commissioner of education of the State Buffalo, N. Y.: of New Hampshire: "The observance (jf Thomas Jelferson's one hundred and eighty •• I am interested in the proposal that nation-wide attention be given seventh birthday, on account of his outstanding services in the estab ,to the next anniversary of the birth of Thomas Jefferson." . lishment of our Government, should be recognized, and one of the ways, Hon. George R. Van Namee, commissioner, Public Service Commission of course, is in the manner you have in mind." ot the State of New York: W. J. Pattison, treasurer and general manager the Scranton Sun: "I am in entire sympathy with the work of the Thomas Jetl'erson "I feel that the event which you plan to celebrate is most com Memorial Foundation!' mendable and is one which certainly. should be celebrated in .t)le emcient Hon. Clarence A. Ludlum, vice president, the Home. Insurance Co., manner yon contemplate, and it is a matter of sincere regret that I New YQrk: . . will be un_able to be _present and have a part in it." · .. It app~ars to me that special recognition of the important contri Hon. Robert E. Simo~, of New .York: . bution of Thomas Jeff'erson to the principle of .religious freedom may "The plan as outlined in your letter, to set aside April .13, .l930, · with especial propriety, be recognized on the next anniversary of his as religious freedom Sunday, seems a good and appropriate one. Any birth which, as yon state, by a notable coincidence, is both Palm Sunday thing which we can do to instill religious toleranc.e in the hearts of and the fir~t day of PaJ!sover, April 18, 1930." our people is in keeping witlr the philosophy of Th~mas 1~erson, and Hon. Harry ~- Guggenheim, president the Daniel Guggenheim Fund is a fitting_observance of his one hundred and eighty-seventh birthday." for the Promotion of Aeronautics (Inc.): '.

1929 CONGRESSIONAL RECORD-SENATE 4185 "I wislj. you · every success in your project for· religious freedom to Jefferson on that day In honor of his authorship of the statute for Sunday, which I heartily approve." religious freedom. I trust that the day will be so observed." Hon. Henry S. Johnston, Governor of the State of Oklahoma: Richard V. Lindabury, jr., of Princeton, N. J.: "I shall be unable to be present, but every move that honors Jefferson "Jefferson's beautiful ideal certainly deserves commemoration, and I is not only paying honor where it is richly due, but coordinating our wish you all success in your undertaking.'' national thought with the principles which he so successfully espoused Hon. W. S. Cawthon, superintend'ent of schools of the State of a'nd which have proven the means of perpetuating our institutions and Florida: preserving individual liperty as a personal experience among men. May "Allow me to say that I heartily concur in the plan to observe our Heavenly Father bless and prosper this and all like occasions." religious freedom Sunday on April 13, 1930." Hon. Paul M. Warburg, of New York: Mr. Charles H. Johnson, director of State charities of New York: " Naturally I am in sympathy with your undertaking, because any " I think the idea of religious freedom Sunday would be a very good thing that can be done to honor the memory of Thomas Jefferson and one." to promote the thought of religious freedom is to be encouraged.'' Dr. otto L. Schmidt, ol Chicago, Ill. : Hon. William Wayne, of Paoli, Pa. : "The plan of a celebration of Thomas Jefferson's birthday next year "I believe the suggestion of the board to be presented an excellent by a special observance appears to me to be a very happy thought." one.". Hon. Chester S. Lord, Brooklyn, chan.cellor regents of the University - Mr. Edwin M. Herr, of New York: of the State of New York: " I believe the suggestion made by the board for the commemoration " I am entirely in accord with the suggestion that Thomas Jefferson's of the one hundred and eighty-seventh birthday of Thomas Jefferson ia birthday be observed as religious freedom Sunday on April 13, 1930, a very good one." in honor of his authorship of the statute of religious freedom. It will Ron. 0. Max Gardner, Governor of the State of North Carolina: please me, indeed, to be of any service to the Memorial Foundation "I wish I could come. Both the nature and the purpose of this in making this recognition, for the thought appeals to me earnestly and occasion interest me tremendously." . sincerely." Ron. Francis G. Blair, superintendent of schoQls of the State of Hon. E. Lansing Ray, preg{dent St. Louis Globe-Democrat: Illinois: ''Thomas Jefferson's stand for broad religious freedom was so out " I agree with the suggestion in your letter about making the one standing, so fearless, and so unusual, considering the thought of the hundt·ed and eighty-seventh birthday of Thomas Jefferson a religious time, that offhand it seems to me very fitting that a religious freedom freedom Sunday." . Sunday be observed. In many respects this was one of the greatest Hon. M. C. Potter, superintendent of schools of Milwaukee, Wis. : acts in the life of a man who did many big things." " I agree heartily with the ideals which you are thus endeavoring to Hon. Harvey Parnell, Governor of the State of Arkansas: express." • "Trusting that the occasion will be a success and assuring you of my - Hon. Claude Meeker, of Columbus, Ohio : cooperation in any way possible, I am.'' "Notwithstanding the animadversions of some historians and com Hon. George F. Shafer, Governor of the State of North Dakota: , mentators, the doctrines of Thomas Jefferson, his espousal of the rights "Wishing you success and assuring you of my interest in the work of of the people, and his stand for religious freedom command the thought the J efferson l\femorial Foundation, I am." and the attention of people of intelligence and liberal mind more than Hon. George Foster Peabody, of Saratoga Springs, N. Y. : - eYer before. The principles of Thomas Jeft:erson .can not die out in a " I am perso~ally in sympathy with the suggested commemoration of republic, and it behooves us all to work to the end that his teachings_ Thomas Jefferson's birthday with religious freedom Sunday.'' may reach the great masses of the people." Hon. George -P. McLean, former Un.ited States Senator from Con , Hon. HARRY B. HAw~, United States Senator from :frfissouri: necticu.t .: "The thought of having a religious freedom Sunday is excellent. · · "All I could do if present would be to express my approval of the " If we only bad more of the philosophy and kindness of Jeiierson proposal." th('re would be less intolerance and we would be a happier people.'' J. E. B. Stuart, jr., of the United Electric Light & Power Co.: Gen. James G. Harbord: "The suggestion that Thomas Jefferson's one hundred and eighty "I think your plan of observing Thomas· Jefferson's one hundred and seventh birthday should be observed as religious freedom Sunday has my eighty-seventh birthday as religious freedom Sunday is a very good one." sincere indorsement, as would any action which would tend to bring· Mr. Hewitt H. Howland, editor the C6:ntury Magazine: before the country as a whole the Jeffersonian ideals of religious "The suggestion that ·Jefferson's ·one hundred and eighty-seven-th ' freedom." · biL·thday, which ·happily falls on Palm Sunday, should be ' observed as· · Charles· D. · Makepeace, vice· president, the Seaboard National Bank : religious freedom Sunday, seems to me fitting and admirable in every "The program which you. outline· for a religious freedom- Sunday on· way, with one possible exception. A.s the day is known as Palm Sunday April 13, 1930, must appe~l to all who are desirous of keeping the llDd as such is celebrated even by some of our dissenting brethren, is name of Mr. Jeft:erBQn and his works fresh in the minds of our people." there not likely to be some objection to the rechristening-to calling it Hon. J. Gordon Bohannan, president Virginia State Chamber of both Palm Sunday and religious freedom Sunday-and possibly some Commerce : · · confusion? If there is anything in this, might not the objections by " Let us have a religious freedom Sunday, that the people through· forestalled by calling it " The day of religious freedom " ? Then it out America may do honor to _the author of the statute for religious WQuld be : · Sunday, April 13, the day of religious freedom; or Palm fr:eed~m." ' Sunday. The day of religious freedom; or, in celebration of- the one -Hon. TOM A. YoN, Unit;m States Congressman from Florida: hun~red and eighty-seventh birthday of Thomas Jetferson, the day of religious freedom." " I think this is a good idea. If you do , arrange for it, I hope it - Gordon M. Buck, Esq., member of the New York bar and former will be my pleasure to attend the service in connection therewith." president of the University of Virginia Alumni Association : Hon'. Alfred E. Smith, former Governor of the State of New York: "It seems to me that the board's suggestion to observe April 13, ".I am of the opinion that the suggestion made by you is a good next, as religious freedom Sunday is an excellent one, and I hearticy one." concur in the plan." Rev. M. Luther Canup, pastor Christ Evangelical Lutheran Church, of lion. H. V. Holloway, State superintendent <1f public instruction ·of ~tro~t, ~ic~. : (. _ Delaware: "-Your suggestion about maldng Ap.ril 13, 1930, religious freedom "It seems to me·, however, that the observance of Jefferson's one Sunday is ·a· very' good one, and I . trust the board of. governors . wUi hundred and eighty-seventh birthday as religious freedom Sunday is a take such action." happy suggestion." Hon. John F. Galvin, chairman the. Port of New York Authority: , Mrs. D. Clinton See, · of Rochester, N.' Y. : _ "I think it a very fiile thought to dedicate the one hundred and " In my opinion the · whole world realizes what a wonderful thing eighty-seventh birthday to rellgious fi.eedom Sunday and am entirely. religious freedom is. And it seems to ine that you have a .wonderful in s)rmpa thy· with the purpose· o~ sam_e.'' thought .in tfle observance of religious freedom Sunday;" L. B. Barringer, of Augusta, Ga.: Lucius N. Littauer, of New York : " I think this is a splendid idea." "Yom· plan for the observance of a religious freedom Sunday inter ~on. August Heekscher : ests me and I will be pleased to aid thereto." " My feeling is that, with ~rge Washington and Abraham Lincoln, Dr. Lotus Delta Coffman, president University of Minnesota.: he constitutes a galaxy of three supermen, it I may so call them, out " I heartily approve the suggestion that Thomas Jelferson's one hun· standing in the inliuence they have exerted on the minds and hearts of dred and eighty-seventh birthday, Apti.l13, 1930, be observed as religiouB all Americans--men whose example will always be an inspiration and freedom Sunday in honor of Jefferson's statute tor religious freedom:". whose counsel and leadership can never fail us." Hon. John W. Abercrombie, assistant superintendent of schools of the Hon. Joseph V. McKee, president Board of Aldermen of the tity of State of Alabama: New York: ".I heartily indorse the suggestion that Thomas .Jefferson's one hun " I believe the suggestion to · be put forth-by- yoW' board is a splendid dred and eighty-seventh birthday, April 13, 1930, · be obserTed as re one and· should be- adopted.'' . ligious ft•eedom Sunday. It would be most appropriate to pay tribute . · ·Hon. · ~rman H.· DaviS; president Woodrow Wilson ·Foundation : 4186- CONGRESSIONAL RECORD-SENATE 0CTOBER . .3 "There is much merit In the suggestion that Thomas Jefferson's late commerce with foreign countries, to encourage the indus one hundred and eighty-seventh birthday should be observed as religious tries of the United States, to protect American labor, and for freedom Sunday." other purposes. James F. Stiles, publisher Nassau Daily Review: Mr. BLAINE, Mr. President, I desire to read into the " The plan outlined in your letter has my sincerest indorsement. A RECoRD parts of the contents of some letters that are character century after the death of this great American statesman and phfloso istic of many letters that I am receiving daily from my own pber finds America still suffering from religious prejudices and bigotry. State of Wisconsin. If we had been able long ago to catch his magnanimous conception of These letters come from various sections of the State, and in religious freedom and put it into practice as he .did, the great forces in my opinion they reflect the feeling of the consumers and this Nation now aligned against each other might be enjoying the farmers and dairymen of Wisconsin. All ot these letters came blessings· of individual liberty and freedom of worship without the in one mail this morning ; many of them come each day ; but slightest friction." I huv~ selected only these three or four because they are Dr. Edwa...rd N. Callsch, rabbi Congregation Beth Ahabah of Rich typical. · mond, Va.: This lett~r is addressed to me: " I consider the suggestion to observe Jefferson's one hundred and eighty-seventh birthday next April 13th an excellent on~. and hope to Am writing this to ask you to please protest against all general in see it widely adopted." creases in the proposed Hawley-Smoot · tariff bill except the agricul Mrs. Frank Korn, president Oklahoma Memorial Association: tural schedules. " I · approve the suggestion of the board to set apart April 13, 1930, Everyone I meet is opposed to an increase. Instead of being in as religious freedom Sunday In ct!lebration of the one hundred and favor of raising the rates, nearly everyone seems to think there should eighty-seventh birthday of Thomas Je.IIerson, the author or the statute be a general downward revision, for since the Fordney-McCumber bill of religious freedom and shall cooperate with the board in an endeavor was passed in 1922 normal conditions have been restored in Industry at to have the day properly observed in Oklahoma." the expense of agriculture. W. J. Harahan,· president the Chesapeake & Ohio Rallway Co.: I am a dairy farmer ana sincerely hope you can do something to "I think the suggestion that Thomas Jefferson's one hundred and help us. eighty-seventh birthday, April 13, 1930, be observed as religious free Here is one, the language of which may not be in the tongue dom Sunday is a good one." Hon. Mitchell May, justice Supreme Oourt of the State of New York: of Harvard, but it expresses keenly the feeling of the consumer: " I desire to register myself as being heartily in favor of the object DEAR SrR : Do you often hear from us poor devils around here? Well, of your organization, and to congratulate yon on the sel('ction of April I kindly ask you to do all you ean in your power to fight the bill, so 13, 1930, because of tts great significance as religious freedom Sunday." that we can struggle along a little easier-the new tariff bill. Please . S. E. Thomason, publisher the Chicago Da:il.y Journal: do not let it slip by. Many <>f us can not make ends meet, even by " I can think of no Sunday which can be so fittingly telebrated as hard economizing. religious freedom Sunday on this continent as that which falls on Thomas Jefferson's birthday." Here is a letter, written in great religious fervor, from people whom I know: Mrs. Joseph S. Calfee, of St. Louis, Mo.: . " I think your suggestions for the celebration of April 13, 1930, are MY DEAR SENATOR: Would like to say that we here--that is, my very flue, and I hope they can be carried out.". family; we represent 11 voters-would like to ask yon to kill this tariff 0. K. Cushing, Esq., member of the bar of California: bill now before the Senate. We know full well that you and our other u I am glad to know that you are taking an occasion to commemorate Senator will do all this without our asking; but it will perhaps increase the ideals of Thomas Jefferson in favor of our religious freedom. your strength in the fight, we will also pray to God to help you. There is too much attempt nowadays in many quarters to interfere wltb Mr. WALSH of Massachusetts. Mr. President, will the Sena religious and other freedom of the individual. We seem to be passing tor yield? through an era of activities of the • busybody.' " Ron. Finis J. Garrett, judge of .the UJlited States Court of Customa The PRESIDING OFFICER. Does the Senator from Wis and Patent Appeals: consin yield to the Senator from Massachusetts? Mr. BLAINE. I do. " It seems to me the idea of having special exercises on April 13, 1930, in commemoration of Jefferson's one hundred and eighty-seventh Mr. WALSH of Massachusetts. Was the prayer to kill or to murder the tariif bill? birthday, making the ~aston one to be observed as religious freedom is Sunday, is a highly commendable one, and I believe it is one which Mr. BLAINE. This prayer to kill it outright. will be of great benefit." Mr. President, those are only a few of the scores and scores Mrs. J. Allison Hodges, director of Virginia Federation of Women's of letters that I am receiving. They come from the minds and Clubs: _ hearts and souls of these people. There is no propaganda move "I think your idea of having Jefferson's one hundred and eighty· ment back of them ; and in connection with these letters I de seventh birthday, April 13, 1930, observed as religi()us freedom Sunday sire to read a letter addressed to all Members of the United is a plendfd one.'' States Senate by the Wisconsin Farm Bureau Federation : A. Leo Well, Esq., member of the Pennsylvania bar: MADISON, Wrs., September 24, 19!9. "I unreservedly approve of and fav<>r the proposal. In these beetle To AU Metnbers of the United States 8enate: days of preoccupation we too often fail to remember those services to The present administration called the present special session of Con posterity of the great thinkers of age.s past, and especially if these men gress for the specific purpose of effecting limited revision of the tariff formulated and introduced thoughts and pcinciples, new at the time so that agricultural products shall be placed on an equality with indus and innovations to ~ir age, but now accepted and looked upon as a trial -products. natural development of civilization. This development, however, n:iight Congress thus far has not conformed to this purpose, in that it has never have been made, or might have been. greatly retarded, except for so readjusted industrial tariffs as to make the inequality. between agri the righteousness and justice of those great thinkers. · cultural and industrial products greater than ever befor·e. Unless the "The world at large to-day little thinks of and less considers the im proposed tariff schedules are changed to conform with the above-men press of freedom and tolerance which Jefferson stamped upon the institu·, tioned purpose they are absolutely unsatisfactory to agriculture. tions of this our country when he wrote and secured the passage of the Keeping the above 1n mind, we believe it your duty to exercise every Virginia statute of religious freedom. With his prophetic eye he saw its effort to make any action taken by Congress conform to the purpose importance, and so included it in his epitaph, which he wrote himself, as mentioned, or that no adjustments be made at all. one of his three contributions for which he was entitled to recognition by posterity." WtSCO~SIN FARM BUREAU FEDERATION, CLIFFORD G. HUPPERT, REPORT OF POST-OFFICE NOMINATIONS · Eucutive Secretary. Mr. PHIPPS, from the Committee 011 Post Offices and Post Road , as in executive session, reported. sundry postal nomina RIOOESB tions, which were ordered to be placed on the Executive Mr. SMOOT. Mr. President, I understand that one or two Cal~ndar. other Senators desire to speak upon the pending question; but B.EFE:RENCE OF EXECUTIVE MESSAGES they have asked me to allow them to speak to-morrow. There The PRESIDING OFFICER (Mr. JoNES in the chair): The is nothing else that we can do until this particular amendment Chair, as in executive session, refers to the appropriate com is acted upon. There ·are very few Senators present; and 1; mitte£\; executive messages from the President. o:t the United therefore move that the Senate take. a r~ until to-morrow States. morning at 11 o'clock. REVISION OF THE TARIFF The motion was agreed to ; and (at 4 o'clock and 36 minutes The Senate, as in Committee of the Whole, resumed the con p.m.) the Senate took a recess until to-morrow, Friday, October sideration of the bill (H. R. 2667) ro provide revenue, to regu- 4, 1929, at 11 o'clock a. m. 1929 - CONGRESSIONAL RECORD--HOUSE 4187

NOMINATIONS ADJOURNMENT ' - lffa:ecutive nominatimUJ received-by the Senate Oatober 3 (legis Mr. HADLEY. Mr. Speaker, I move that the House do now lative day of September 30), 1929 adjourn. UNITED STATES ATTORNEY The motion was agreed to; accordingly (at 12 o'clock and 3 Louis Edward Graham, of Pennsylvania, to be United States minutes p. m.) the House adjourned until Monday, October 7, attorney, western district of Pennsylvania, vice John D. Meyer, 1929, at 12 o'clock noon. resigned. APPOINTMENT, BY TRANSFER, IN THE ARMY EXECUTIVE COMMUNICATIONS, ETC. TO ORDNANCE DEPARTMENT Under clause 2 of Rule XXIV, executive communications were First Lieut. Leslie Seekell Fletcher, Field Artillery (detailed taken from_the Speaker's table and referred a.S follows : in Ordnance Department), with rank from M.arch 22, 1929. 56. A letter from the Comptroller General of the United States, transmitting report of the Comptroller General of the PROMOTION IN THE ARMY United States of the financial transactions of the United States To be colonel ,Shipping Board Merchant Fleet Corporation, dealing with mat Lieut. Col. Morris Melville Keck, Infantry, from October 1, ters arisirig in the audit of the accounts of the Merchant Fleet 1929. Corporatj.on made pursuant to the act of March 20, 1922 ( 42 · To be lWutenant colonels .Stat. 444), as amended (H. Doc. No. 111); to the Committee on · Maj. Frederick Willis Manley, Infantry, subject to examina ·Expenditures in the Executive ~epartments and ordered to be tion required by law, from October 1, 1929. printed, with illustration. Maj. Edward Joseph Cullen, Coast Artillery Corps, from 57. A .letter from the Secretary . of the Navy, tr~mitti11g October 2, 1929. proposed draft of a bill authorizing the transfer of certain lands Maj. Henry Roland Smalley, Quartermaster Corps, from near Vallejo, Calif., from the United States Housing Corpora October 2, 1929. tion to the Navy Department for naval purposes; to the Com To be majors mittee on Public Buildings and Grounds. Capt. John Warlick McDonald, Cavalry, from September 29, 58. A letter from the Secretary of the Navy, transmitting 1929. draft of a proposed bill to provide for the reimbursement of Capt. Stuart Randall Carswell, Infantry, from October 1, 1929. Guillermo Medina, Hydrographic Survey, for the value of per Capt, David-Hazen Blakelock, Cavalry, from October-2, 1929. sonal .effects lost in the capsizing of a Navy whaleboat ofr Capt John Oliver Hoskins, Field Artillery, from October 2, Qalera Island, Gulf of Panama; to th~ Committee on Claims. 1929. . PROMOTION IN THE PHll.IPPINE SCOUTS PUBLIC BILLS AND RESOLUTIONS To be lieutenant .colonel Under cla-use 3 of Rule XXII, public bills and resolutions Maj. Fred Damman, Philippine Scouts; from September 29, were introduced and severally referred as· follows : 1929. By Mr. FRENCH: A bill (H. R. 4499) to prohibit the an CHAPLAINS nouncement, conduct, and advertising of lotteries by means of radio communication ; to the Committee on the Merchant Ma To be ma-jors rine and Fisheries: . Chaplain-Earl Dudley Weed from September 27, 1929. By Mr. HOFFMAN: A bill (H. R. 4500) authorizing and di Chaplain William Loren Fisher from September ZT, 1929. recting the Secretary of the Treasury to enter into a contract Chaplain Emerson Etherage Swanson from September 27, or contracts for the erection and completion of a plant suitable • 1929 .. for the investigations of the Bureau of Mines in New Bruns Chaplain Charles Frederic Graeser from September ZT, 1929. wick, N. J.; to the Committee on Mines and Mining. Chaplain Thomas Edward Swan from September 28, 1929. By Mr. JAMES (by request of the War Department): A bill Chaplain Clifford Paynter Futcher from September 28, 1929. (H. R. 4501) to authorize funds for the construction of a build Chaplai11 Frank Hallie Hayes from Sep_tember _28, 1929. _ ing at FO'rt Sam Houston ; to the Committee on Military Affairs. Chf\plain -Aristeo Vincent Simoni from September 29, 1929. - By Mr. YON: A bill (H. R. 45{)2) authorizing an appropria Chaplain Peter Joseph Kilkenny from September 29,-1929. tion for repairs to old Fort San Carlos, Fla., and for the pro curement and erection of a tablet or marker thereon; to the HOUSE OF REPRESENTATIVES Committee on Military Affairs. · THURSDAY,- ·October 3, 1.929 PRIVATE BILLS AND RESOLUTIONS The House met at 12 o'clock noon and was called to order by Under clause 1 of Rule XXII,- I1I'ivate bills and resolutions the Clerk, lion. William Tyler Page. were introduced-an'd severally referred as follows: Mr. PAGm. The Clerk will ,:read the following communication By Mr. AYRES: A bill (H. R. 4503) granting an increase of from the Speaker. pension to Ann E. Anderson; to the Committee on Invalid Pen The Clerk read as follows: sions. · Tlllt SPEAKER'S ROOMS, By Mr. BAIRD: A bill (H. R. 4504) granting an increase of HOUSE OF REPRESENTATIVIES, pension to Sarah C. Miller; to the Committee on Invalid Pen- - Washington, D. 0., October 3, ts-29. sions. By Mr. BOWMAN: A bill (H. R. 4505) granting an increase The CLERK OF TH.E HOUSH OF REPRESENTATIVES ; of pension to Susan E. Watts; to the Committee on Invalid Pen- I hereby designate the Hon. SAMUEL S. ARENTZ as Speaker pro sions. - - - · trmpore for this day. 'By Mr. BRAND of Ohio: A bill (H. R. 4506) granting an in NICHOLAS LoNGWORTH, crease of pension to Nancy E. Urquhart; to the Committee on Sp-eaker Howse of Representati-ves. Invalid Pensions. Mr. ARENTZ took the chair as Speaker pro tempore. Also, a bill (H. R. 4507) granting an increase of pension to The Chaplain,- Rev. James Shera Montgomery, D. D., offered Elizabeth T. Douglass; to the Committee on Invalid Pensions. the following prayer: By Mr. CRADDOCK: A bill (H. R. 4508) granting a pension . 0 God of love and Father of all mercies, we pause to think of to James R. Clark; to the Committee on Pensions. what we owe Thee-how feeble our response and how weak our By Mr. FITZGERALD: A bill (H. R. 4509) for the relief of grasp upon- the abiding treasures of life. Come to us and let C. A.· Cates ; to the Committee on Claims. fall from us the godless things· that often cling like a jealous By -Mr.' FOSS: A bill (H. R. 4510) granting a pension to curtain, and make us realize the grander things of the soul and Mary A. Down~; to the Committee on Invalid Pensions. · _ its heritage. "Forgive us and make us thoughtful, and show us By Mr. GREENWOOD: A bill (H. R. 4511) granting an somewhat the exhaustless depths of Thy power. Restore us by increase of pension to Lewis Kimmel ; to the Committee on the force of Thy redeeming grace. Keep us endowed with moral Pensions. courage which carries our principles untarnished through the By Mr. HARDY: A bill (H. R. 4512) granting a pension to world. · 0 bless this truth to us, which is the shadow of God Martha Dickson ; to the Committee on Invalid Pen~ions. Also, a bill (H. 4513) granting a pension to Margaret falling across our lives, and Thine shan be the glory. In the R. Master's name we pray. Amen. Curry ;_to the. Committee on Invalid Pensions. By Mr. HUD~O:N': A bill (H._ R. 4514) granting an -increase The Journal of the p:roceedings of Monday, · September 30, of pension to Annie M. Hilliker ; to the Committee on Invalid 1929, was read and approved. Pensions. .4188 CONGRESSIONAL RECORD-8ENATE OcTOBER 4 Also, a bill (H. R. 4515) granting an increase of pension to Interstate Commerce Commission; to the Committee on Inter Martha White ; to the Committee on Invalid Pensions. state and Foreign Commerce. · By Mr. JENKINS: A bill (H. R. 4516) granting a pension to 733. By Mr. YON: Petition of Frank C. Webb, J. D. Cobb, Charles C. Mack ; to the Committee on Pensions. W. H. Mapoles, and others, for increase of pensions to soldiers, By Mr. McFADDEN: A bill (H. R. 4517) granting an in sailors, and widows of soldiers and sailors; to' the Committee crease of pensiion to Mary R. Adams ; to the Committee on on Invalid Pensions. Invalid Pensions. 734. By Mr. HOGG: Petition of soldiers of the Civil War, Also, a bill (H. R. 4518) granting an increase of pension to widows of Civil War soldiers, and other patriotic Citizens of Elie Brewer; to the Committee on Invalid Pensions. Huntertown, Ind., urging early passage of House bill 992, in Also, a bill (H. R. 4519) granting an increase of pension to troduced by Mr. Hooa, and other legislation of gener.al benefit Deborah A. Smith ; to the Committee on Invalid Pensions. to Civil War soldiers and widows of s'-"ldiers; to the Committee Also, a bill (H. R. 4520) granting an increase of pension to on Invalid Pensions. Effie J. Frink; to the Committee on Invalid Pensions. By Mr. ROMJUE: A bill (H. R. 4521) granting a pension to Mary F. Mills; to the Committee on Invalid Pensions. SENATE Also, a bill (H. R. 4522) granting a pension to Rebecca A. Sohn ; to the Committee on Invalid Pensions. FRIDAY, Oetober 4, 19~9 Also, a bill (H. R. 4523) granting a pension to Newton (Legi8Zative day of Monday, September 30, 1929) Corbin ; to the Committee on Invalid Pensions. By Mr. SHORT of Missouri: A bill (H. R. 4524) for the The Senate met at 11 o'clock a. m., on the expiration of the relief of Ada B. Clodfelter; to the Committee on Claims. recess. By Mr. THOMPSON: A bill (H. R. 4525) authorizing the Mr. FESS. Mr. Presiident, I suggest the absence of a quorum. President to reappoint Irvin H. Zeliff; United States Army, re The PRESIDENT pro tempore. The clerk will call the rolL tired, to the position and rank of captain, Cavalry, in the United The legislative clerk called the roll, and the following Senators States Army ; to the Committee on Military .Affairs. answered to their names: By Mr. THURSTON: A bill (H. R. 4526) granting an increase Allen Frazier Keyes Smith Ashurst George King Smoot of pension to Martha A. Foreman; to the Committee on Invalid Barkley Gillett La Follette Steck Pensions. Bingham Glass McKellar Steiwer Black Glenn McMaster Stephens Also, a bill (H. R. 4527) granting an increase of pension to Blaine Goff McNary Swanson Nancy A. Hall; to the Committee on Invalid Pensions. · Blea.se Goldsborough Metcalf Thomas, Idaho By Mr. UNDERWOOD: A bill (H. R. 4528) granting an in Borah Gould Moses Thomas, Okla. Bratton Greene Norris Townsend crease of pension to Sarah H. Matheny; to the Committee on Brookhart Hale Nye Trammell Invalid Pensions. Broussard Harris Oddie Tydings By Mr. WOODRUFF: A bill (H. R. 4529) for the relief of Capper Harrison Overman Vandenberg Caraway Hastings Patterson Wagner Henry M. Brown ; to the Committee on Military Affairs. Connally- Hatfield Phipps Walcott Copeland Hawes Pine Walsh, Mass. Couzens Hayden· Pittman Walsh, Mont. PETITIONS, ETC. Cutting Hebert Ransdell Warren Under clause 1 of Rule XXII, petitions and papers were laid Dale Heflin Reed Waterman Deneen Howell Robinson, Ark. Watson on the Clerk's desk and referred as follows: Dill Johnson Schall - Wheeler 721. By Mr. BACHMANN: Petition of Viola Kefi'er and 150 Edge Jones Sheppard citizens of McMechen, W. Va., urging immediate action on the Fess Kean Shortridge Civil War pension bill proposed by the National Tribune; to Fletcher Kendrick Simmons the Committee on Invalid Pensions. Mr. FESS. My colleague the junior Senator from Ohio [Mr. . 722. Also, petition of J.D. Hecker and 170 citizens of Marion BURTON] is still detained from the Senate by illness. I will County, W. Va., urging immediate action on the Civil War pen allow this statement to stand for the day. · sion bill proposed by the National Tribune; to the Committee on Mr. SCHALL. I wish to announce that my colleague the Invalid Pensions. senior Senator from Minnesota [Mr. SHIPSTEAD] is still detained 733. Also, petition of V. Mae Campbell, president Ladies' from the Senate on account of illness. I ask that this announce Grand Army of the Republic Circle, No. 3, and 150 citizens of ment may stand for the day. Moundsville, W. Va., urging immediate action on the Civil War The PRESIDENT pro tempore. Eighty-nine Senators having pension bill proposed by the National Tribune; to the Com answered to their names, a quoro.m is present. mittee on Invalid Pensions. COMMITTEEl SERVICE 724. By Mr. BOYLAN: Resolutions of Bottlers' Service Club, On request of Mr. RoBINSoN· of Arkansas, and by unanimous of New York, protesting against proposed tariff increase on consent, it was sugar; to the Committee on Ways and Mea~~. - 725. Also, letter from tbe Nassau Smelting & Refining Works Ordered, That Mr. BLEASE be assigned to service upon the Committee (Ltd.), of New York City, protesting against proposed tariff on the District of Columbia. rates on antimony; to tbe Committee on WayB and Me.ans. ONE HUNDRED AND FIFTIETH ANNIVERSARY OF DEATH OF COUNT 726. Also letter from Remington Rand (Inc.), of New York PULASKi City, inclo~ing telegram from their representative in Switzer Mr. BARKLEY. Mr. President, I ask unanimous consent to land in re pending tarift bill; to the Committee on Ways and have printed in the RECORD an article appearing in the Polonian Means. Review for September, 1929, written by Mi.'. Ignatius K. WH 727. Also letter from Underwood Typewriter Co., 342 Madison winski, with reference to the observance of the one hundred and A venue New York City, inclosing clippings from New York fiftieth anniversary of Count Casim.ir Pulaski's death. Herald,' Paris edition, protesting against increased tariff; to the There being no objection, the article was ordered to be printed Committee on Ways and Means. in the RECOIW, as follows : 728. Also, resolution by brick manufacturers of the State of [From the Polonian Review, September, 1929] New York, requestiilg tariff on brick; to the Committee on Ways and Means. A VALIANT G:mNTLEM.AN-Two NATioNs PREPABB TO HoNOR CouNT 729. Also, letter from W. H. Duval & Co. (Inc.), 229 Fourth . CASIMIR PuLASKI, IDEALIST AND PATRIOT Avenue, New York, protesting against proposed change in tariff By Ignatius K. Werwinsld on fancy cotton-mixed textiles ; to the Committee on Ways and Once again a grateful country ts preparing to J>ow in homage A.nd Means. . gratitude to Brig. Gen. Casimir Pulaski, an outstanding personality 730. Also, letter from H. Kohnstamm & Co. (Inc.), of New and hero of the American Revolution, whose loyalty ended only when York City, inclosing article of the American Manufacturers of he gave his life that America might be tree. Maraschino Cherries, protesting against proposed increased duty It was in 1825 that Latayette, then on a visit to the United Sutes, on cherries; to the Committee on Ways and Means. laid the corner stone tor the first monument erected to the memot•y of ' 731. By Mr. ~IDRPHY: Petition of sundry citizens of the Count Pulaski amid a touching and impressive eert>mony at Savannah, State of Ohio, favoring increase of pension to CivU War veter in whose defense the glorious Pole died. Later, the city of Savannah, ans and widows of veterans; to the Committee on Invalid seemingly aware that the perpetuation of Pulaski's memor7 was deserv Pensions. ing of a more elabontte memorial, in 1853 erected and dedicated a newer 732. By Mr. O'CONNELL of Rhode Island: Petition of the and larger monument on Monterey Square with appropriate formalities Brotherhood of Locomotive Engineers of the New York, New and exercises. Haven & Hartford Railroa.cl system, requesting the passage of a To-day as time brings on the one hundred aud :fiftieth anniversuy law placing truck and bus lines under the jurisdiction of the of Pulaski's death, PNSident Hoover hilS proclaimed October 11 nt•J.t 1