7150 CONGRESSIONAL RECORD-SENATE. N OVEl\IBER 2'

By Mr. VOLSTEAD: A bill (H. R. 8957) to define and pre­ 2903. By 1\Ir. KISSEL: Petition of the Zeldo & Martinez scribe punishment for certain offenses against Federal reserve Export Co., of New York City; to the Committee on Ways and banks, member banks, Federal farm loan banks, and national Means. banks; to the Committee on the Judiciary. . 2904. Also, petition of the Kelvin Engineering Co. (Inc.) of By Mr. CROWTHER: A bill (H. R. 8958) to amend an act New York City; to the Committee on Ways and Means. entitled "An act to supplement existing laws against unlawful 2905. Also, petition of the Turner Construction Co., of New re traints and monopolies, and for other purposes," approved York City; to the Committee on Ways and Means. October 15, 1914, by amending section 10 thereof; to' the Com­ 2906. By 1\Ir. LINTHICUM: Petition of the Afro-American of mittee on Interstate and F&reign Commerce. Baltimore, 1\Id., favoring House bill 13 ; to the Committee on the By Mr. DUPRE: A bill (H. R. 8959) to amend the act to Judiciary. e tablish a Veterans' Bureau and to improve the facilities and 2907. Also, petition of Joel Gutman & Co., of Baltimore, l\ld., service of such bureau, and further to amend and modify the registering opposition to clause 402 of the Fordney bill; also war risk insurance act, approved August 9, 1921; to the Commit­ petition of Coale M:ufHler & Safety Valve Co., of Baltimore, Md., tee on Interstate and Foreign Commerce. favoring reduction of personal income tax revenue bill; to the By the SPEAKER (by request): Memorial of the Legislature Committee on Ways and Means. • of the State of Louisiana urging the repeal of the Federal es­ 2908. By Mr. RHODES: Resolution on law enforcement, tate tax; to the Committee on Ways and l\feans. signed by Rev. A. R. Graham and others; to the Committee on Also, memorial of the Legislature of the State of Louisiana the Judiciary. urging a modification of the Volstead law so as to allow the 2909. By 1\Ir. TOWNER: Resolution and petition of Conven­ sale of light wines and beer under certain restrictions ; to the tion of Christian Churches of California North, urging passage Committee on the Judiciary. of Towner-Sterling educational bill; to the Committee on Edu- cation. · PRIVATE BILLS AND RESOLUTIONS. Under clause 1 of Rule XXII, private bills and resolutions SENATE. were introduced and severally referred as follows: By Mr. CLOUSE: A bill (H. R. 8960) granting a pension to WEDNE DAY, November 13,19131. Martha E. McDonald ; to the Committee on Pensions. (Legislatit:e day of Thursclay, Octoba 20, 1921.) By Mr. COOPER of Wisconsin: A bill (H. R. 8961) authoriz­ ing the Secretary of War to donate, for ornamental purposes, The Senate reassembled at 11 o'clock a. m., on the expiration one cannon or fieldpiece and five cannon balls to the village of of the recess. Sharon, Wis.; to the Committee on Military Affairs. Mr. CURTIS. Mr. President, I suggest the absence of a By Mr. DYER: A bill (H. R .. 8962) granting a pension to Eliza quorum. J. Lynch ; to the Committee on Invalid Pensions. The PRESIDENT pro tempore. The Secretary will call the Also, a bill (H. R. 8963) granting a pension to August Bohlen­ roll. der; to the Committee on Pensions. The principal legislative clerk called the roll, and the fol­ By Mr. GORMAN: A bill (H. R. 8964) for the relief bf John lowing Senators an ·wered to their names: Berrin; to the Committee on Military Affair . As burst Gerry McKinley Sheppard By Mr. HERSEY: A bill (H. R. 8965) granting a pen ·ion to Borah Hale McLean Simmons Brandc;;ee Harreld McNary Smoot Effie C. McKay ; to the Committee on Invalid Pensions. ·Brou. sard Harris Moses Spencer By Mr. MAPES: A bill (H. R. 8966) granting a pension to Bursnm Heflin Nelson Sterling Milton Clark; to the Committee on Pensions. Calder Hitcbcocl• New Sutherland Cameron · Johnson New !Jerry Swanson By Mr. MOTT: A bill (H. R. 8967) for the relief of A. W. Capper Jones, N.Mex. Nicholson Townsend Wright; to the Committee on Claims. Caraway Jones, Wash. Norbeck Tramrp.ell By Mr. OVERSTREET: A bill (H. R. 8968) granting a pen­ Culben;on Kenul'ick Norris Wadsworth Cummins Kenyon Oddie Walsh,Mas. sion to E. 1\f. Carter; to the Committee on Pensions. Curtis Keyes Overman Watson, Ga. By Mr. PURNELL: A bill (H. R. 8969) granting an increase Dial King Penrose Watson, Ind. of pension to Alameda J. McBride; to the Committee on Invalid Edge Ladd Phipps Weller Ernst La Follette Poindexter Willis Pensions. Fernald Len root Pomerene Also, a bill (H. R. 8970) granting an increase of pension to Frelinghuy ·en McKellar Reed Rebecca D. Chizurn ; to the Committee on Invalid Pensions. By Mr. TAYLOR of Tennessee: A bill (H. R. 8971) granting Mr. DIAL. I wish to announce that my colleague [:Mr. an increase of pension to Sherman G. Johnson; to the Com­ S1>HTH] is

the mineral output had expanded to $1,064,000,000, or nearly double situation the Chair appoints the Senator from Tennessee [Mr. that of 1889. In 1910 the mineral output again doubled to a produc­ SHIELDS] to act upon the committee to which the Senator from tion or $1.992,000,000. The United States Geological Survey estimates Montana [Mr. WALSH] was appointed. that the mineral output of 1920 was $6,707,000,000, or twelve times as great as that of 1889, and nearly three times the value of the agricul­ ADDI!.ESS BY SENATOR NICHOLSON. tural outnut at the time when the Department of Agriculture was Mr. POii'\DIDXTER. Mr. President, I ask unanimous con­ created. Because of this rapid growth in the mining industry and the position of increasing importance that it has and will continue to as­ sent to have printed in the RECORD a very able address by Bon. sume for the Nation as a whole, there should be no question but that SAMUEL D. NICHOLSON, a Senator from the State of Colorado, it is entitled to Cabinet representation. delh·ered before the American Mining Congress at Chicago Another evidence of the importance of the mining industry to the industrial system of the Nation is the amount of traffic which it sup­ October 20 on important current questions relating to the min­ .Plies to the railroads. Of a total freight tonnage or 2,307,000,000 tons ing interests of the country, and also a resolution adopted by carried by the railroads of the United States in 1918, the mining_ in­ the American Mining Congress. dustry supplied 1,500,000,000 tons, or over 65 per cent, while the com­ bined tonnage or the agricultural and live-stock industries was but The PRESIDENT pro tempore. Without objection, it is so 290,000,000 tons, or less than 13 per cent. ordered. It is apparent from the foregoing statement that the railroads of the Nation could not provide the necessary transportation facilities for the 1\ll·. PE:N'"ROSE. 1\fr. President, I have not heard what the agricultural and live-stock industries were it not for the fact that the paper is, and I would at least like to know for what unaniino-qs mining industry sustains the major burden of their operating costs. consent is requested. This reflects the general dependence of the public upon the operation of the mines for the lowering of the cost of transportation on their The PRESIDENT pro tempore. The Secretary will state the food products. The cost of living would become prohibitive if the agri­ paper. cultural and live-stock industries were forced to bear the entire burden 1\Ir. PENROSE. I do not want to have it read, but I would of operating the railroad system. at least like to know for what purpose the revenue bill is The United States Geological Survey, in estimating the world's production of minerals, shows to what extent the United States has con­ being interrupted. tributed. In 1913 the United States produced 39 per cent of the l\lr. POINDEXTER. I did not suppose it would interrupt the 1,342,300,000 metric tons of coal produced by the world. In 1918 we re>enue bill to offer this matter to be printed in the RECORD. produced 355,900,000 barrels of crude petroleum, which represented 67.8 per cent of the total produced by the world. For the period 1857-1918 1\Ir. PENROSE. This one matter does not interrupt it, but the production of crude petroleum by this country was 4,608,000,000 some score of &enators, I observe, are on their feet, doubtless barrels, which represents 61.1 per cent of the total world output. This for similar purposes, and I thought it was legitimate curiosity country in 1913 produced 63,000 000 metric tons, or 36 per cent of the world's total of iron ore. We consumed in that ;vear 64,500,000 at least to have the Chair extend to me the courtesy of tons of iron ore, from which 31,500,000 metric tons of J>lg iron was pro­ informing me what was presented. duced, or 40 per cent of tlle world's total, and 31,800,000 metric tons l\Ir. POINDEXTER. I stated, and I now restate, that it is a of steel, which was 42 per cent of the world's production. The United States produces from domestic ore about 60 per cent of the world's speech delivered before the American Mining Congress by the output of copper and through its commercial control of deposits in Senator from Colorado [Mr. NICHOLSON] on important ques­ Mexico, Peru, Ch1le,1 and Canada supplies about 9 per cent more. The tions relating to the mining interests of the country. iron, coal, oil, and copper reserves of the United States exceed the combined developed reserves of all other nations. This list of minerals 1\lr. PENROSE. I only desire to state that I shall not ob­ extensively produced in this country could be greatly len~thened. ject in this instance, but I hope the revenue bill will now be Practically all of the foreign nations regard the minlng industry so proceeded with. Later in the day, if a convenient lull occurs important that they have made special governmental provision for it in creating departments of mines. In Canada and most of the British in the proceedings, there will doubtless be opportunity given possessions a minister of mines presides over the department. l<'rom for the introduction of these minor legislative matters. an international standpoint an industry which makes so prominent a The PRESIDENT pro tempore. Without objection, the ad­ contribution to the world's output of fundamentally necessary mineral products as the mining industry of the United States should bd digni­ dress and resolution will be printed in the RECORD: fied by having a separate department in the Government, presided over The matter referred to is as follows: by a representatiTe of the President's Cabinet. ADDllESS DELIVEBED BY HOX. SAMUEL D. NICHOLSON, UNITED STATES The Department of the Interior, originally created to dispose of the SENATOR FROl>l COLORADO, BEFORE CONVEN'l'ION OF TilE A&lEniCA'N public domain, has become the repository !or numerous other odds and MINING CONGRESS AT CHICAGO, ILL., 0CTOBEn 20, 1921. ends of administrative responsibility wholly unrelated to the purpose !or which it was created and still more unrelated to the administrative NEED OF THlil MINING INDUSTRY FOU CABlNET REPRESENT.\TION. problems of the mining industry. There are ·14 separate bureaus in the Senator NrcHOLSON sp;>ke as follows: Interior Department, of which but two relate to mining, while in the 'l'o satisfy the requirements of war, it became 'necessary for the Gov­ A.gricultura Department there are 18 subdivisions, all of which relate ernment to exercise the initiative In sp~ding up the production and mobilization of the essential war resources of the Nation. These re· to agriculture. · sources were constituted J?rincipally of the products and by-products of Under the present system the United States Geological Survey and the agricultural and minmg industries. 'l'he problem confronting the the Bureau o! Mines are but 2 subordinate bureaus among 14 over Government was not merely to insure the normal output of those prod­ which the Secretary of the Interior must exercise control. It is not ucts, bnt in many casE'.s to make certain of a sufficient overproduction conceivable, even though the Secretary might have excellent qualifica­ to satisfy the additional requirements of Europe under the stress of war. tions to solve the problems confronting the mining industry, that be The governmental machinery in all branches was put to the severest could with his other manifold responsibilities as the chief executive test. The most unusual burdens were thrust suddenly upon the execu­ of th~ Department o! the Interior, devote sufficient time to the work. tive, legislative, nnd administrative branches of the Government. The There should be a governmental leader for this zreat industry so funda­ available machinery of every governmental department was carefully mentally necessary to the progress of the Nation. I! a crisis should analyzed to determine whether it could assume the responsibilitv and occur in the coal-mining industry or any other branch of the mining perform well the task. Wherever it was found that the governmental industry who could be called upon on behal! of the administration to machinery already existing was not adequate, various agencies were render · a'dvice, formulate a remedy, and assume the responsibility for created to supplement the organizations of such departments and to the result without the creation of a special commission with its costly assume the responsibilities for supplying various resources. Power was delays? delegated to these newly fcrmed branches of the Government and respon­ Many constructive laws have been enacted !or the benefit of the sibility centralized. agricultural industry, and I am in hearty accord with all that has been Upon our entrance in the war, the Department of Agriculture was well done as favorably affecting the farmer and the general interests of the equipped to meet the problems of war. Its extensive machinery had public. I contend, however, that the wel!are of the mining industry is been developed progressively since 1889, when that department was first as fundamentally important to the general welfare and prosperity of represented by a Cabinet member. Through its many experiment sta­ the Nation as the agricultural industry, and that consideration should tions n.nd field agents, this department was in close and friendly touch now be given the request of that industry for a department of mines with the farmers all over the country, and it became necessary only to with Cabinet representation. increase the field force in order to expand the service which was required The bill which I have introduced is broad and comprehensive. All to increase production. The Food A.dministration w;1s organized solely activities affecting every branch of the mining industry, wherever to aid the agricultural industry in the conservation of food, an emergency located in the present governmental program, are a.ssembled under one requirement of the war, and not a prerequisite in times of peace. central control. When the mining industt·y was analyzed, however, the governmental I am an exponent of economy 1n tlle ~penditure of public fund!!. machinery was found to be woefully deficient to cope with the many The creation of this new department Will effect economies arising vexatious problems of mineral production. In making this statement from the elimination of all duplications of effort of the various agen­ I do not minimize the excellent service which the United States Geo­ cies now employe4, and will expand the present governmental service logical Survey and the Bureau of Mines rendered during this period of to .the industry at less expense. The mining industry is not benefited great national stress,· but what I desire to say is that there was no by duplicated activities, and would welcome this more direct and busi­ • secretary of mines to correspond with the Secretary of Agriculture nesslike administration. The indirect benefits which would accrue to who had personal contact and knowledge of that industry. There was the public generally would be an even more important consideration no executive branch of the Government with well coordinated facllities arising from the centralized control made possible through Cabinet to assume the responsibility which was imposed. It became necessary, representation and the creation of a department of mines. therefore, to create many independent agencies for the purpose of ex­ In 1910 the mining industry produced $2,000,000,000 of new wealth tending and developing the governmental machinery to solve the war and was then as much in need of a department to deal exclusively with problems of mineral production. This alone should be a lesson to those its many problems as was the agricultural industry in 1889, with a in char~e of our governmental affairs who must assume administrative similar value of production. responsibility, that the occasion never again should arise when the The mining industry has outgrown the governmental machinery machiner;v is not well developed and available to meet any of the provided, and yet the problems involved in our mineral and metal­ emergencies of war. A Government well equipped to deal with the lurgical production are no less complex than those of an· agricultural resource production problems arising from war is the best adapted to nature. To-day the Nation is confl·onted with many economic uncer· render the service needed in times of peace. tainties affecting all branches of industry. The ocean upon which we It is with this thought in mind that I have introduced Senate bill are sailing is uncharted and precedents are lacking to gmde our course 1957. to establish a department of mines, with Cabinet representation to safety and industrial poise. The solution of our industrial prob­ for the mining industry. lems depends upon the reduction of costs of production. 'Phese oper­ The fil'St Secretary of Agriculture was appointed in 1889, in which ating efficiencies can be obtained only through improvements developed year the agricultura_l output of the Nation was valued at $2.460,000,000. by research, and in this connection the department of mines would In that year the mmeral output was valued at $551,000,000. In 1900 render a signal service to the mining industry. Without this effective 7152 CONGRESSIONAL RECORD-SENATE. NoVEJ\rnER 2, assistance our return to normal will be postponed for many 11ea.rs to The READING CLERK. The next amendment is amendment No. come and the unempl

Tile READING CLERK. On page 289, line 21, in the committee Mr. SMOOT. If we get this money, . we will redeem the amendment already agreed to, strike out the words and figures short-time certificates that are drawing a higher rate of in­ " sections 230 and 301 " and insert in lieu thereof "Titles II terest than will be drawn by. these savings certificates; and and III." then there is another object in it. The Senator remember The PRESIDENT pro tempore. Without objection, the vote that when the proposition was fi.I'St presented, it was to create by which the committee amendment was agreed to will be re­ a spirit of saving among the people of the United States. Tlle considered. ·· The question is on the amendment proposed by the rate of interest on these certificates is not as high as the rate Senator from Utah to the amendment of the committee. of interest on the short-time certificates, and all the money that The amendment to the amendment was agreed to. we can get in this way will be used for the retirement of savings • Tile amendment as amended was agreed to. stamps presented for payment and if more is sold then the The READI TG CLERK. Amendment No. 75. On page 292, short-time certificates that are in circulation to-day; strike out lines 3 to 25, inclusive, and insert in lieu thereof the Mr. SIMI\10NS. Does the ~enator mean that it is propose.Jt \Vill state that this specifically states the day on which the the Government, is to send tileir atlrlit:oual earnings hom(:'. repeal takes effect in bette-r form than T~tle XIV as reported Among .that class of people no doubt there are mauy who ''oulo, and }lart ment provides that it shall be increased from $1,000 to $5,000. of the $520,000,000 he proposed to provide for by the i sunuce I have here a letter addressed to the chairman of the committee of securities of the Government to take up this $170,000,000 I from the Secretary of the Treasury, and if the Senator desires referred to instead of paying it out of the current taxes. I will have this letter read from the desk. Of course that is an obligation already incurred, but it wa. · Mr. Sll\IMONS. No. Will the Senator state the contents of an obligation, as I understand it, which properly hould be the letter? met out of the revenues collected from time to time by tile l\fr. SMOOT. The contents are just what I have already Government, because I think the Government got tJ1e benefit of stated as the object of this amendment. It is to allow an indi­ the very moneys which it now must replace, and I am curious vidual to purchase $5,000 of these savings stamps instead to know whether we are now to have a drive for tile sale of of $1,000. savings stamps to get that money in. Mr. SIMMONS. Will the Senator state the purpose of mak­ l\Ir. SIMMONS. In addition to the $70,000,000 to pay off the ing this drive to sell savings stamps? obligations of the Government in connection with the Pittman Mr. SMOOT. There are two reasons. amendment, the Secretary included as a part of this $4,000,- Mr. SIMMONS. For what object is the money to be raised? 000,000 we are now trying to raise a million dollars which This is substantially the Government borrowing that much more would be necessary to redeem saving stamps which . would be money. What is it proposed to bor~:ow this money for? · presented for paymeut \hzring this current year. I have some: 1921. CONGRESSIONAL RECORD-SENATE. 7155 what of a notion that these new savings stamps are to be sold gone and bought the silver; but the Treasury is now without to pay for those saving stamps. the $170,000,000, and is it proposed now that the Treasury 1\fr. SMOOT. No; if the Senator will remember, the esti­ shall raise $170,000,000 by the issuance of interest-bearing :nat~. ~"'overing these items both Senators speak of, was over securities, and go out in the market and buy $170,000,000 of $4,500,000,000. silver under the Pittman Act? Mr. SIMMONS. That was the original estimate. 1\fr. SMOOT. No; that is not proposed at all, Mr. President. l\Ir. SMOOT. That was the original estimate, which included Under the law, the Government of the United States must-pur­ the items both Senators have spoken of; but the $4,034,000,000 chase that American silver and pay a dollar an ounce for it did not include those items at all. until it has purchased the same amount of silver which they 1\fr. SIMMONS. But the $4,500,000,000 did include both of took out of the Treasury at the time of the passage of the those items, and at that time the Secretary of the Treasury un­ Pittman Act. doubtedly reached the conclusion that these two items were Mr. REED. This is what I want to know, if the Senator legitimate objects to which revenue should be devoted. But please, whether we are now proposing to sell interest-bearing when he reduced the estimates he eliminated those two items, securities of the United States, and to employ the money raised one of them being, as I said, to redeem such war-savings stamps in that way to purchase silver, either under this act or under as might be presented under the law for redemption during the the Pittman Act? current fiscal year. As they have to be provided for, it oc­ 1\fr. SMOOT. I can not say what securities of the Government CUlTed to me that possibly the Secretary of the Treasury had in will be sold, but if it is necessary in order to purchase the silver mind to pro•ide for the redemption of those issues already out that the Government must sell certificates of any kind, it will by i ·suing more. I would like very much if the Senator would have to be done. advise me if the Secretary has any such purpose as that, be­ Mr. REED. If that is the law, then we must repeal the law, cause he has already, by virtue of his original estimate, in and we might as well insert the repeal right here in this bill, which they were included, let it be understood that, so far as and then we will know that we are not paying interest and he was concerned, he regarded them as belonging to this fiscal going out to buy silver to bank up in the Treasury of the United year, and that it was an obligation of the Government which States, and particularly since silver has fallen. Has it not should be paid out of current taxes. fallen very greatly in value? 1\Ir. SMOOT. They did not belong to the fiscal year's ex­ Mr. SMOOT. It has; but there was an agreement made with penses, but many of them were falling due in the fiscal year the silver producers of the country that if they would sell their and had to be met either by issuing short-time certificates to silver to th Government of the United States for $1 an ounce; take the place of the obligations which were made years ago, and that silver at the time was sold to England for a dollar an or, if we could sell these certificates now at the lower rate, the ounce, when the market value, for a while at least, was $1.36. Go•ernment would save whatever difference there might be in The Senator does not now suggest that the Government of the the interest. United States should not fulfill the promise they made under As far as the $170,000,000 for the silver under the Pittman that law to· the silver producers of the country? Act obligation is concerned, we passed that law, and the ~est­ Mr. REED. I, of course, do not want the Government of the ern miners of the United States agreed with the Government United States to break any obligation it has made, but I can not that silver should not be more than a dollar an ounce. At the understand this transaction. We agreed with the miners to same time, silver was being bought all over the world at $1.36 pay them a dollar an ounce for their silver, but we did not take an ounce. That was the agreement made by the Government of their silver; we took our own silver, melted down our own dol­ the United States, and there was only one great reservoir of lars, and the miners did not deli\er to us. any silver at a dollar silver unused in the world, and that was in the Treasury of the an ounce. United States, and in order to save England's credit· that reser­ Mr. SMOOT. Oh, yes; they have been delivering certain voir was tapped and sold to England and other countries at amounts every year. If they have delivered it, then we have $1 an ounce instead of $1.36 an ounce, the world price. Eng­ paid for it. land's obligations to India were paid in silver taken from the Mr. HITCHCOCK. Only a part has been delivered. They Treasury of the United States. are deli•ering it from month to month. 1\fr. REED. How did we get in debt by the transaction of Mr. REED. They are delivering it from time to time? taking the dollars out of our Treasmy and melting them down? Mr. SMOOT. Just as fast as they can produce it. Mr. SMOOT. For every ounce of silver that was taken out Mr. REED. Was the contract made with them to deliver a of the Treasury of the United States, whether it was in bullion certain amount, or was the contract simply that for what they or in silver dollars or half dollars, and melted and sold to would deliver, they should sell it at a dollar an ounce? England at that time to keep her credit good, the Government 1\fr. SMOOT. The contract was that they would deliver to of the United Stutes was required, under the law, to purchase the Treasury of the United States as many ounces of silver at a an equal amount of American silver that was to be produced dollar an ounce as were taken from the Treasury of the United thereafter. States at that time and sold for a dollar an ounce to England. Mr. REED. They got the money from England, did they The purchases were made by the Government of the United not? · ' States as low as 56 cents an ounce and sold it at a dollar an Mr. SMOOT. Yes; but it was used in the war, at the time ounce. All profit went to the Government, and during the war of the war. There is no question but what it was a part of time, and whatever gains were made were expended then, and the ad•ance that was made to England. all we ask is that the contract made with the producers of silver Mr. REED. Then we did not get the money from England. in the country be carried out. The Senator from Missouri is We took the silver dollars out of our Treasury, we melted them the last man in the world who would ask the Government of the down, we turned the metal over to England to the amount of United States to repudiate its obligations. $170,000,000. I understand the transaction that far; it is very Mr. REED. I would not suggest a repudiation of the obliga­ simple. We were to buy, and did buy, an equivalent amount of tion, but I had not understood from the previous statement of silver from our miners. the Senator that it amounted to an obligation. Mr. SMOOT. No; we have not bought all of it yet, but we Mr. SMOOT. It certainly is an obligation. will, under the law. Mr. REED. It is an obligation that is accruing from month Mr. REED. We were to buy it? to month, from time to time, as the silver is delivered. We are Mr. SMOOT. Yes; that is right. now to understand that it is proposed to sell war savings certifi­ Mr. REED. But we have not bought it. England did not cates to meet in part that obligation instead of meeting it ont pay us $170,000,000 cash to put back into our Treasury, and of the revenues of the country. that is a part of the debt England owes us to-day. Is that the Mr. SMOOT. It is not an annual expense of the Government. Senator's understanding? It is an obligation made just the same as the obligation created 1\fr. SMOOT. It would be just the same whether they paid by the selling of Liberty bonds or the short-time certificates us money for it and then we loaned them the money, as if they that were authorized by Congress. It is the same character of were advanced that as part of the loan made to England. obligation. There is no difference at all. We hope to have :Mr. REED. No; it would not be the same, because if she the short-time certificates paid off in time. There is no doubt had paid us $170J)OO,OOO in gold for this silver which we sold about that. This is an advantage to the Government of the to her at 39 cents on the dollar less than the market price, we United States because the interest upon the savings certificates would have had the gold in our Treasury, and the Treasury is less than the interest upon the short-time certificates. would have been whole, anyway. We might thereafter have Mr. REED. The Senator said it is an obligation incurred loaned her an equal sum, but that would be a different trans­ during the war. We incurred many obligations during the war action. The Treasury in that case would have been whole, which we have been paying out of the revenues of the Govern­ and they could have taken the money out of the Treasury and ment. We are paying fnterest right along out of the revenues 7156 CO.r:rGRESSION AL RECORD-SENATE. NovEMJ3ER 2 1

of the Government, and this is no more an obligation to be post­ 1\fr. SMOOT. I yield to the Senator from Uissouri. poned and renewed by the T1-easury without authority of Con­ Mr. REED. I thought the Senator from Nebra ka was gre s than any other obligation of the Gov~rnment. I main­ through. tain that the Treasury of the United States has no authority, Mr. ffiTCHOOOK. I was trying to find out the purpose of unless it is found in some particular statute, to refund the stimulating the sale of war savings stamps at this time if there obligations of the United States, and yet here is a device is nothing to redeem and if the taxes provide all the necessary which I believe is nothing more nor less than authority to sell revenues of the Government. a lot of certificates and then the Treasury will take that money Mr. SMOOT. I will say that this is a thrift program. It aud buy this silver from time to time and thus increase the was begun for the purpose of inducing the American people to interest-bearing debt of the United States instead of reducing learn how to save and place their savings with the Government, that debt. where there is no chance of losing the money. As it is generally The Senator has said we can have plenty of money. Cer­ done, a person, particularly a foreigner who comes into the tainly we can if we lay the taxes in this bill. If the Senator's country, as well as many of our own people, who may have sales. tax is adopted it would raise the money. saved $100 or $200 Q:r $1,000, is approached by some speculator l\Ir. SMOOT. Oh, no; the sales tax of the Senator from Utah who comes along with some rosy statement as to how much he n it is now framed, providing 1 per cent as it now -does, would could make if he will only invest his money in some ecurity or rai e only $253,000,000. in some project owned by him, and every dollar that is invested :Mr. REED. If you put back the excess-profits tax: you are in it would be lost. This is simply a furtherance of that saving taking off you can pay off these obligations and many other and thrift program. obligations. The proposition, as I understand it, is to cut down 1\Ir. HITCHCOCK. Let me ask the Senator this question. Is the bill to a point in. the reduction of the taxes that have been it not a fact that a limit of 1,000 was placed on the purchase so often discussed and need not be referred to again specifically, of saving stamp for the reason that the interest was a higher o that obligations such as we are now -discussing, accruing from rate than the Go\ernment was paying on its ordinary borrow­ time to time in the payment for silver-that is, to take tile plac-e ings. of the silver taken from the Treasury-may be paid by the Mr. Sl\IOOT. No; I do not think that was the reason. issuance of interest-bearing securities and thus increa e the l\fr. HITCHCOCK. That is my impression. If that is the interest-bearing debt of the United States. case we should be a little careful how we authorize the doubling Now, Mr. President, as far as I :am concerned, I run opposed of that limit. to that proposition. We ought to raise the tax:es ·now when Mr. SMOOT. No; I will say to the Senator that the real people are -able to pay them and from the people who .are able reason why it was limited to a thousand dollars was that if to pay them, and we ought to meet such obligations as these the Government of the United States entered into the savings and not be issuing a lot more of short-time securities which will bank busine s and receiving deposits and paying the same rate come back to plague us. ·u is a wrong method of conducting of interest that the savings banks of the country did, and at the business of the Government. the time the bill was pa sed they were only paying 3 per cent l\Ir. SMOOT. I will .say to the Senator that the amount that in all of the eastern banks, that the savings institutions of the would be paid f-or any purpose that would many way, shape, or country would not only be crippled, but they would be vili;ually form increase the obligations of the Government as they exi t destroyed. That is why the limit of $1,000 was placed. to-day wiD appear just as soon as the Treasurer's report is Mr. HITCHCOCK. I think otherwise. I wish the Senator made. I say that the proposition we have before us now is for could produce a table showing what is the actual rate of in­ the purpose uf redeeming the savings stamps bearing interest, tere t on war saving stamps. 1\Iy impre sion is that it approxi­ I think, of 4 per cent as presented for payment, and when they mates 5 per. -cent. fall due. l\Ir. "HITCHCOCK. l\Ir. President-­ 1\lr. Sll\Il\IONS. I think the purpose of the war savings Mr. SMOOT. The amendment mearis-- tamps was to encourage' investment in our war securities by The PRESIDENT pro tempore. The Chair must insi. t that tho e of mall earnings or means. It was not intended to ap­ in Senators proceed in order. Does the enator from Utah yield peal to that class expected to invest Liberty bonds and like to the Senator from Nebr.aska Y war ecuritie . They were intended to appeal to the man -of mall and Mr. SMOOT. I yield. means who might have small savings who could readily understand the simple plan upon which these saving Mr. HITCHCOCK. I have forgotten what intere t th e avings stamps bear. tamp were ba ed. In 'Order to appeal to these small investors the ra.te of interest was made higher than those of Liberty 1\lT. SMOOT. As I remember tb~ la , it ,vru; not to exceed 4 per cent. That is as I remember the law. bond or ()ID' other war obligations a.nd the plan was so simple that it 1·equired no business experience or investment knowl­ l\fr. IDTCHCOCK. That interest i not paid until the startllJS mature? edge to see its ad-rnntage Mr. . MOOT. It is paid in this way: If it is a "$5 tamp, it is 1\Ir. SMOOT. The existing law requires that it shall not be purchased for less than $5. In other words, the interest is more than 4 per cent. The original law .allowed 3 per cent on figured during the life of the savings . tamp and 1s glYen to the the savings, but during the war time we did change that law purchaser at the time be buys tbe . a nngs romp~ . In other and provided that the rate of interest at no time should be words, whatever he gets in the wa.y of interest, at wh1ltever rate more than 4 per cent. it is, he gets at the time of purchase. Mr. Sil\11\iONS. But it was adjusteti o as to appeal to Mr. REED. Then how mueh do we sa'e? those of smnll earnings or capital. Mr. HITCHCOCK. A war savings stamp with a maturity Mr. SMOO'l"'.. The Senator is eorrect. value of $5 is purchased, I think, for 4.12. 1\Ir. SIMMONS. For that reason we limited the amount that Mr. SMOOT. Every month the value changes. one pel·son might purchase to a. thousand dollars. Of course :Ur. HITCHCOCK. I mean. if bought originally it was 4.12. we would not have limited the sale of these stamps to one per­ Mr. SMOOT. If bo11ght originally, it would have been -about son to a thousand dollars unless we were appealing to this class that amount. · and did not wish investment in these securities who might be­ ~Ir. HITCHCOCK. There is 1 cent added every lllQntb. come purchasers of our war bonds or certificates of indebted· l\lr. SMOOT. It is something like that. It was figured out ness. It was a scheme to bring out the small holding of the exactly. poorer classes of the country, and for that purpo e a spccia.l Mr. HITCHCOCK. But the Treasu-ry report fails to state inducement 'vas offered~ what that interest approximates. What I -desired to ask the l\Ir. mTCHCOCK. My colleague {Mr. NORRIS] just informs Senator was whether it is not a fact now that the interest on me that the rate of interest on war savings stamps is 4i per the e Treu ury certificates is being reduced from tim~ to time cent and that it is compounded semiannually, so that makes it ant'! is likely to get below what the savings stamps actually better than 4! per cent and increases the rate of interest to the bear? pomt where we have been selling securities smce the war. 1\Ir. SMOOT. No. I will say to the Senator tbat it will not Mr. SMOOT. I will say to the Senator that with Liberty get that low for a long, long time, not while we serve in this bonds selling at ~d 00 it is not a better rate. body. . Mr. HITCHCOCK. But we have been selling Treasury cer· 1\lr. IDTCHOOCK. I have here the report of the · sale of ti:ficates <>n that basis since the war, and they are likely to be savings stamps up to October of last year. That sale seems to be down there very soon again. going on as it is now at very substantial figures. M.r. SMOOT. The junior Senator from Nebraska {Mr. N{)x,. Mr. REED. Mr. President-- RIS] may be right about it being 41 per cent, but I do not .so The PRESIDENT pro tempore. Does. the Senator fl·om Utah remember it. · ~leld, and if so, to whom 7 M1·. IDTCHCOCK. That ,was my impression. 1921. CONGRESSIONAL RECORD-SENATE. 7157

Mr. SMOOT. I think the law requires that-it shall be not to begin ·this thrift program .as mapped out not only by the more than 4 per cent, but I will have it looked up in just a Treasury Department but by the Post Office Department. moment. Mr. SIMMONS. · Does the Senator think that it is to be the Mr. SIMMONS. It is probably a little more than 4 per cent, inauguration of a permanent policy? but the interest is compounded, as the Senator from Nebraska Mr. SMOOT. I think so. I think that this will be a policy has stated, and as the result of that compounding it is equiva­ which the Government will continue. I think it is a splendid lent to more than 4 per cent. I am sure the Senator will not policy, too. Anything that will take the savings of the Ameri-­ controvert the proposition that the rates were made and tbe can people and secure the investment of tbose savings with the conditions were made much more favorable tban those of the Government at a fair· rate of interest it seems to me Oongress Liberty bonds or any other Government obligations which we ought to encourage in every way possible. issued during the w!lr. We limited it to a thousand dollars Mr. SIMMONS. I have no sort of quarrel with any poli-cy because we did not wish the investor to buy; we did not wish to of the Government which is intended to encourage thrift among ell that class of securities to the in"\"estor, ·the man of large the peopl-e, but I do inv-eigh against a scheme to postpone means. We wanted him to buy the other bonds at a lower rate the payment of the obliga_tions of_tl:J.e Government which ought of interest. to be met from the eurrent revenues {)f the Government. I in­ Now the propositi-On, as I understand, whieh is eontained in veigh .against schemes that are calculated to postpone th-e payment this amendment i an invitation to the man who has an invest­ of .obligations that ought to be met from day to day and from ing eapital of $5,000 to put it in war savings stamps instead -of year to year and to put them in the form of long-term Gm-ern­ investing it in Liberty bonds or in certificates of indebtedn~s. ment bonds, that will throw that part of the burden of the war I somewhat question the policy of that; certainly it is a reversal that ought to be bo-rne by the present generation, that ought of the former policj7; . but, Mr. President, that was not the to be borne by the men who profited -as the result of the -n-ar, ground upon which _I based my inquiry of the Senator. I ill upon r-uture generations, who are not tn the same sense that not say oppo ·ition, for I run not now exactly occupying the posi­ we are obligated to the discharge of those obligations-at least tion of opposing the amendment offered by the Senator. The who 'WHl not, like many of tile taxpayers of to-day, h-ave purpose of my inquiry of the Senator wns to find out definitely in their pockets large profits which have been made as the for what reason the Secretary of tfue Treasury desired to sell re ult of the war in wbieh these great obligations were incurred. these stamps. M.r. Sl\IOOT. l\Ir. President, I wish to .assure the Sen­ I have a suspicion, and that suspicion has grown into COJl­ ator-- viction as the result of this discu sion, that the Secretary of Mr. Sil\DiONS. If the Senator will -pardon me, it is -a .·mall the 'Treasury is now eeking to secure authority to borrow upon am-ount, it is true, Mr. Pre i-de.nt, but I .run .afraid tbat t.hm'e is the faith of the Government sufficient money to pay the $170,- a entiment in this e<;untry looking to the postponement of the 000,000 that he struck out of hi aragraph (6) of subdivision (a) of section 234; The amendment was agreed to. (7) The amount of interest earned during the taxable year which under paragraph ( 4) of subdivision (b) of section 213 is exempt from Mr. SMOOT. On page 20, I move to strike out lines 15 to taxation under tbis title, and the amount of interest allowed as a credit 17, inclusive. under subdivision (a) of section 236; The PRESIDENT pro tempore. The amendment will be . (8) A reasonable allowance for tbe exhaustion wear and tear of property, as provided in paragraph (7) of subdivision1 (a) of section stated. 234; . The ASSISTANT SECRETARY. On page 20, it is proposed to (9) In the case of such a domestic msurance company, the net income strike out lines 15 to 17, both inclusive. of whlch (computed without the benefit of this paragraph) is $25,000 or less, the sum of $2,000. The amendment was agreed to. (b) In the case of a foreign corporation the deductions allowed in l\1r. SMOOT. On page 20, line 23, I move to strike out the this section shall be allowed to the extent provided in subdivision (b) word "includes," and to insert in lieu thereof the word of section 234. (c) Nothing in this section or in section 246 shall be construed to "means." permit the same item to ·be twice deducted. Mr. Sil\IMONS. May I ask the Senator why be is making these changes? Is it because of the amendments adopted? The PRESIDENT pro tempore. The question is upon the Mr. SMOOT. Yes. There is no capital loss in this section amendment proposed by the Senator from Utah. at all. Mr. SIMMONS. This is all one amendment? Mr. SIMMONS. It is just to meet that amendment? Mr. SMOOT: Yes. I can explain it to the Senator in a Mr. SMOOT. Just to meet that amendment; that is all. All very few moments. I will say that the amendment now offered three amendments are for the same purpose. is the same amendment that we were discussing on the floor The PRESIDENT pro tempore. The amendment will be day before yesterday, and it went over at the request of the stated. Senator from Wisconsin. The AsSISTANT SECBETABY. On page 20, line 23, it is pro­ Mr. SIMMONS. It is substantially the same proposition posed to strike out the word "includes," and to insert in lieu that was contained in the last revenue act as it passed the thereof the word " means." Senate? The amendment was agreed to. Mr. SMOOT. Substantially the same. Mr. SMOOT. There is only one other amendment, and that Mr. SIMMONS. But since that time the Senator has made is the insurance amendment, No. 32. I ask now that the Sec­ numerous changes, and I want to know the general character retary state that amendment. of those changes. 1921. CONGRESSIONAL RECORD-SENATE. 7159 "·

1\lr. SMOOT. I will tell the Senator what the . changes are. Mr. KING. I knew the general purpose, but I was wonder-. The only changes are that we have amended the amendment by ing wbether they had been sufficiently coordinated with refer­ making a separate provision for mutual companies. In the ence to existing law as fully to protect the Government. past the mutual companies have paid scarcely any tax what­ Mr. SMOOT. They have; and the amendments that we are ever. In some cases it is so small that it would hardly be passing on now are required because of the fact that we have denominated a tax. If they are included in this amendment, taken out the mutual companies from the provisions of this the tax in some cases would represent an increase of over 400 amendment. That is all there is to it. per cent. The purpose of it is to allow the mutual companies Mr. FRELINGHUYSEN. Mr. President, before this amend­ to pay taxes under existing law. ment is agreed to, I should like to ask the Senator from Utah l\Ir. Sll\11\IONS. You exempt them from this new scheme? how much in premiums this exempts the mutual companies? l\1r. Sl\IOOT. We exempt them from this new scheme. Mr. SMOOT. Just what the exemptions are to-day. In fact, l\lr. Sil\!l\10NS. So as not to overtax them. I agree with if all of the provisions of the amendment are agreed to, the the Senator about it. mutual companies will be taxed under the present law. The 1\-Ir. SMOOT. That is all there is to it. other companies will be taxed upon their income instead of The PRESIDENT pro teiLpore. The question is upon agree­ upon the premiums, as has been done in th~ past. ing to the amendment offered by the Senator from Utah. The PRESIDENT pro tempore. The question is on agreeing The amendment was agreed to. to the amendment offered by the Senator from Utah. The AssiSTANT SECRETARY. On page 7, line 2, after the The amendment was agreed to. :figures "245," insert the following: The ASSISTANT SECRETARY. On page 83, lines 15"and 16, it is and paragraph (5) of subdivision (b) of section 246. proposed to reconsider the committee amendment already agreed The amendment was agreed to. to, and in lieu of the matter proposed to be inserted by the l\Ir. SIMMONS. That is the one we are discussing. committee amendment to insert the following: l\Ir. REED. Is that this long section? Determined (except in the case of insurance companies subject to the l\Ir. SMOOT. Yes; this is the insurance section. These tax imposed by section 243 or 246). . amendments are simply to perfect the original amendment so a · to exclude mutual companies from the . tax imposed under The PRESIDENT pro tempore. Without objection, the vote this amendment and allow the mutual companies to pay taxes by which the committee amendment was agreed to will be re­ unuer existing law. That is all there is to the amendment, and considered. The question now is upon agreeing to the amend­ that is what they want. ment offered by the Senator from Utah. l\Ir. PENROSE. Mr. President, supplemental to what the The amendment to the amendment was agreed to. Senator from Utah has stated, I desire to inform the Senate The amendment as amended was agreed to. that the Finance Committee met on this morning and fully l\ir. PENROSE. Mr. President, I have informed the senior considered these matters, and authorized the Senator from Senator fTom Minnesota that I would yield for a moment for Utah to submit these amendments to the Senate. There was the submission to the Senate of a patriotic resolution which he desires to present. c:~ full meeting of the committee. l\1r. KING. I suppose the Senator means the majority ARMISTICE DAY: Hl21, A HOLIDAY. members of the committee. l\I1·. PENROSE. No; all were invited, I '''ill say for the l\Ir. NELSON. Mr. President, I aJSk unanimous consent to consolation of the Senator. report from the Judiciary Committee and ask for the imme­ l\Ir. KING. It does not console me at all. diate consideration of House joint resolution 215, a joint reso­ l\Ir. PENROSE. We are always illuminated and helped by lution to declare November 11, 1921, a legal public holiday. the presence of the minority, when they come. I will state briefly that it is to make Armistice Day this Mr. REED. Mr. President, I care nothing about the prepo­ year only a legal holiday. It applies only to this year, and as sition; but if I received an invitation it never got to me per­ the time is very short between now and the 11th of November sonally. I never heard of the meeting until this morning. it will be necessary for this to pass the Senate at this time. Mr. PENROSE. The clerk of the committee was instructed There being no objection, the Senate, as in Committee of the to notify every Senator by telephone and written notice of the Whole, proceeded to the consideration of the joint resolution, meeting this morning. The notices were sent out yesterday which was read, as follows: afternoon. Whereas Armistice Day, November 11, 1921, has been designated as the appropriate time for the ceremonit>.s incident ·to the burial of l\Ir. REED. I did not get any. the unknown and unidentified American soldier in the Arlington Na­ Mr. SIMMONS. Mr. President, I do not think we ought to tional Cemetery ; and have this useless discussion here. I have not heard anybody Whereas this unknown soldier represents the manhood of America who gave their lives to defend its integrity, honor, and tranquillity against opposing the action of the committee this morning, and ask for an enemy ; and . . • . a vote. Whereas the nations of the earth are on that date J,omm~ With the Mr. PENROSE. Let us vote on these amendments. United States in paying respect and homage to this unKnown sol­ Mr. ASHURST. Vote! dier: Therefore be it Resolved etc., That the President is hereby authorized to issue a The ASSISTANT SECRETARY. On page 7, line 2, after the figures proclamation declaring November 11, 1921, a holiday, as a ma1·k of " 24.5 " in the House text and after the bracket, it is proposed respect to the memory c.f those who gave their lives in the late World to insert: War as typified by the unknown and unidentified American soldier who is tO be buried in Arlington National Cemetery on that day; and the and paragraph (5) of subdivision (b) of section 246. President is respectfully requested to recommend to the governors of the various States that proclamations be issued by them calling vpon ~he PRESIDENT pro tempore. The question is on agreeing their people to pause in their usual pursuits as a mark of respect ,m to the amendment. this solemn occasion. The amendment was agreed to. The joint resolution was reported to. the Senate without The AssiSTANT SECRETARY. On page 17, line 5, strike out the amendment, ordered to a third reading, read the third .:ime, and words " trust under "-- passed. · Mr. REED. What amendment is the Secretary now refer­ The preamble was agreed to. ring to? The AsSISTANT SECRETARY. It is the latter part of amend­ AMENDMENT OF Bll..L EXTENDING EMERGENCY TARIFF ACT. ment 32, on page 8 of the printed pamphlet. Mr. McLEAN. I submit an amendment intended to be pro­ Mr. REED. Very well. posed by me to House bill 8643, to extend the tariff act approved The ASSISTANT SECRETARY. On page 17, line 5, strike out the May 27, 1921. words "trust under," and in lieu thereof insert the following: The PRESIDENT pro tempore. Without objection, the Trust, and to insurance companies subject to the tax imposed by amendment will be received, printed, and lie on the table. section 243 or 246, under. l\Ir. PENROSE. The amendment ought to go to the Com­ Mr. KING. Mr. President, may I ask my colleague whether, mittee on Finance. in the examination of these proposed amendments, it has been Mr. McLEAN. Very welL accurately determined that no deductions or allowances will be The PRESIDENT pro tempore. It will be so referred. made to insurance companies to which they are not entitled, and that no e-""{:emptions or extensions of favors will be granted by REINTERMENT OF AMERICAN SOLDIER DEAD. this legislation? The PRESIDENT pro tempore laid before the Senate a com­ Mr. SMOOT. There is no doubt of it; and I want to say to munication from the Acting Quartermaster General of the Army, my colleague that when this amendment is agreed to, outside transmitting a list of American soldier dead to be reinterred in of the mutual companies, every insurance company will pay to the Arlington National Cemetery November 3, 1921, at 2.30 the Government of the United States a higher tax than it pays p. m., which was ordered to lie on the table for the information to-day. of Senators. , . 7160 CONGRESSIONAL RECORD-SENATE. N OVEl\IBER 2'

PETITIO - s Am MEMORIALS. -ate to report favorably -the concurrent Tesolution just intro­ l\Ir. NEWBERRY presented resolutions adopted by the board duced by my colleague, and I ask unanimous consent for its of directors of the Manistee (Mich.) Board of Commerce and present consideration. the Saginaw {Mich.) Rotary Club, favoring inclusion in the The PRESIDENT pro tempore. The Senator from New York permanent tariff bill for a limited period of a selected embargo -asks unanimous consent for the J)resent eon ideration of the against importation of synthetic organic chemicals, which were concurrent resolution, which will be read by the Secretary. referred to the Committee on Finance. The concurrent resoluti-On (S. Con~ Res. 14) was read, con­ He also presented a memorial of the Mason County (Mien.) sidered by unanimous consent, and agreed to, as follows : Bankers Club, remonstrating against the imposition of a . tax Resolved by the Senate (tl1e House of Repnsentativ es cancurrin.g), on bank checks and -drafts, which was ordered to lie on the That the :8i!rge8llt at Arms of the Senate .and the Sergeant at Arms of tJ;te House of Representtttives be, and they are hereby, authorized and table. directed to purchase a floral wreath to be placed upon the caisson bear­ .1\fr. McLEAN presente-d a petition of sundry members of the ing the remains of the unknown soldier which are to lie in state in the Methodist Episcopal Church, of Sterling,_Conn., praying for the rotunda of the Capitol of the United States from November 9 to Novem­ ber 11, 1921, the expense of same to be paid in equal proportions from enactment of the so-called Willis-Campbell antibeer bill, which the contingent funds ot the Senate and House of Representatives. was ordered to lie on the table. He also presented 42 memorials of sundry citizens of New TAX "REVISION. Haven, Bridgeport, New Britain, Norwich, Ansonia, and West The Senate, as in Committee of the Whole, resun:ied the con­ Haven, all iP- the State of Connecticut, remonstrating against sideraticm of the 'bill (H. R. 8245) to reduce and eqnalize tax­ the enactment of the so-eal1ed Penrose and Fordney bills pro­ ation, to amend and simplify the •revenue act of 1918, and for viding for refunding the debts uf our allies in the World War, other purposes. and also praying for the enactment of legislation granting a The PRESIDENT pro tempore. The Secretary will state the bonus to veterans of the World War, which were ordered to lie next amendment. on the table. The ASSISTANT _SECRETARY. Page 90, line 13, after the word Mr. HARRIS presented a communication from A. E. McLean, " contracts " in ert a period and the following: J. S. Gordy, nnd W. J. Penn, _jr.~ transmitting resolutions After December 31, 1921, this subaivision shall apply only to mutual unanimously .adopted by a meeting of representative citizens of insurance companies other than 1ife lnsmance companies. Albany, Ga., held October 6, 192.1, favoring the limitation of The -amendment wns -agreed to. armaments, etc., which was referred to the Committee on For­ The AssiSTANT SECRETARY. On page 90, line 23, after the eign Relations. word "only," insert a pe1iod and the following: Mr. CAPPER presented a petition of the Forum Discussion This subdivision shall not be in effect after Deoomber 31, 1921. Club, of San Dimas, Calif., praying for the enactment of Senate The amendment was -agreed to. bill 1435, to contflol forest devastation, to perpetuate forests in The ASSISTANT SECRETARY. On J)age '9'7, line 3, . after the the United States, to raise .a revenue from forest produ.cts, etc., period, insert the following sentence: which was referred to the Committee on Agricnlture :and l:n the case of domestic insurance companies subject to the tax im­ Forestry. posed by section 243 or 246, the term " net income,.. :as used in this subdi'Vis.ion weans net in-oome as -defined in ections .245 and 246, ENROLLED JOINT RESOLUTION PRESENTED. respect! vely. 1\lr. SUTHERLAND, from the Committee on Enrolled BTils, The -amendment was :agreed to. reported that on the 1st instant they had presented to the The PRESIDENT pro tempore. That completes the commit­ President of the United States the enrolled joint resolution tee amendment . The bill is as in Committee of the Whole and ,(S. J_ Res. 114.) accepting the im~itation of the Republic of open to amendment Brazil to take part in :an international exposition to be beld in Mr. HITCHCOCK. Mr. President, I send the following Rio de Janeiro in 1:922. amendment to the -d€sk and ask that the Secretary read it. BILLS AND JOINT llESOLUTION INTRODUCED. The PRESIDENT pro tempore. The Secretary will 1·ead the Bills -and -a joint resolution were introduced, read the first proposed amendment. time, and, by unanimous eonse:at, the second time, :and referred The ASSISTANT SECll:E'l'ARY. On page 218, after line 2, insert a as follows: new subdivision, to r~ad .as follows : (13) From and after J:anuary 1., it922,

1921. CONGRESSIONAL RECORD-SENATE. 7161

Mr. McCORMICK. The tax of $50 a year is on the dea.I.er1 t:be county, the sheriff and the other officers of justice, would Mr. IDTCHCOCK. On the dealer. My feeling is that if we have the right to inspect this record, so that when a crime was can compel every man who sells 'SUCh firearms to pay a tax to committed and the question was asked. ·"Where did the de­ the Government th-ere will be a tendency to reduce the number; fendant secure the pistol? " .an inspection could be made by the and, as I was saying, anyone need but go into any city and into sheriff. I hope the Senator will perfect his amendment, as he the worst neighborhoods of the city, and he will see there ex­ has a right w do, by inserting the word "county." posed in the windows secondhand revolvers offered for sal~ Mr. IDTCHCOCK. I will ask the Secretary to insert the -often at trifling amounts, and the eharacter of customers that word "county " in connection with the State and Federal au­ that man has is enough to arouse the anxieties of any law­ thorities. I am sure there is not a . Senator here who has not abiding citizen. Any tough, any half-witted cri:minal can go been shocked-as· we all have been shocked-during the last into such a place and buy a firearm and go out and shoot a citizen two or three years by the prevalence of crimes of violence. within 15 minutes, and I think there ought to be some attempt There has been in this city '8. number of murders committed made by the National Governmsmt to bring the sale of firearms during the last 12 months, as i.n my own city there have been. at retail under some sort of regulation. It may be said that There is not a city in the l.and or a town of any size that has this is a State matter, and many States have -endeavored to deal not been shocked by recurring crimes of irresponsible individ­ with it; but the trouble is that a State can only regulate or con­ uals wilo are carrying revolvers. I think some step in the direc­ trol the sale within its own borders. As it is now, an evil-dis­ tion of regulating the sal~ ~f r~volvers or at least creating a posed person can buy a firearm in one town, cross ·a river or record tQ show who ha>-e purehased revolver::; ought to be made. cross a State boundary and be a dangerous faetor in another It will yield a small tax. eommunity. Mr. McKELLAR. Mr. President, I am wondering why the So I think it requires the national authority to require these Senator did not include the manufacturers and wholesale deal­ people who sell firearms to pay a tax, just as we f01·merly re­ ers in firearms. The retailers could not sell them unless they quired liquor dealers whq sold liquor to pay a tax, and just as got them from the wholesalers or manufacturers. · we still req_uire cigar dealers and tobacco dealers to pay a tax Mr. HITCHCOCK. The manufacturer is already taxed in to the Government of the United States. another paragraph. I am not proposing this altogether for the Mr. McKELLAR. Mr. President-- purpose of antagonizing the legitimate sale of firearms. It is The PRESIDENT pro tempore. Does the Senator from the retail dealer, the in-esponsible retail dealer, who will sell Nebraska yield to the Senator from Tennessee? to any blackleg or thug who .comes to his plaee, who will sell Mr. HITCHCOCK. I yield. him a revol:ver for two or three dollars. Those are the people Mr. McKEJ,LAR. It strikes me that the Senator's .argument who ought to be reached and put under some sort· of surveil­ is good in so far as pistols and revolver.s :are concerned, but lance. They should be required to keep a record of sales. that it does not hold good so far as shotguns and rifles, used Mr. McCUMBER. I wish to ask the Senator if nearly every for hunting, are concerned. Th~y are a very different kind of State has not already such a regulation as he speaks of? :firearm, and as a rule shotguns and :rifles are used for perfectly Mr. HITCHCOCK. No; I think many States have not. I lawful purposes, while revolvers are not. Will not the Senator know a few States have, and to those States this will only be limit his amendment to revolvers and pistols and small arms? supplemental. It will really aid them ; but those States that Mr. ffiTCHCOCK. That thought occurred to me, but when have it are suffering because neighboring States have failed to 1 reflected that in all towns I am familiar with shotguns and make any provision. rifles are sold in large stores, where the $50 tax is .an insignifi­ Mr. McCUMBER. Where a State, for instance, has one law cant matter. I did not think it would be oppressive on such a on the subject and the Government would make a different law store to pay $50 a year as a tax, and I believe such .stores would and regulation on the same subject, can not the Senator see be benefited by eliminating the sale of second-hand weapons that there is great danger of conflict? If -at all, it would seem by-irresponsible people. to me that his amendment should only apply to the District of Mr. KING. Mr. President, there is very much merit in the Columbia, if they have not already a law in the District, or Senator's proposition; but let me ask the Senator if this is not such States as have no law upon the subject. in line with the proposition to have the Federal Government, Mr. HITCHCOCK. No; I think if the Senator reflects he ~ under the guise of taxation, put its hand upon the business will realize that this is merely cumulative. Where any State activities of 'the people, and control, by Federal officials and has already provided the tax this would add to it ; it would be Federal functionaries, the business which ought to be con­ another tax. Where any State has a regulation as to keeping trolled, if it is controlled at all, by the States or the municipali­ a record this would simply require another record. I ean not ties? Is it not, under the guise of .taxation, a scheme to further see any evil to come out of ·it. subject the State governments and the municipal governments Mr. McCUMBER. The main evil that I see in it is that to the omnipotent hand of the Federal Government? already mentioned by the Senator from Utah [Mr~ KING]. It Mr. HITCHCOCK I think there might be .some color of seems to invade to some extent the province of the States. In truth in what the Senator says, were it not for the fact that addition to that, ho-wever, I think the tax is too heavy. Every many States have already sought to reach this evil in this way, little hardware store in tbe little towns in my State carries and all the States would be benefited by this action. The action firearms, and I think under the laws of the State they have to by an individual State is utterly valueless if a neighboring make a record if any firearm is sold to any person. But it cer­ State fails to take corresponding action. tainly would be.a hardship on the little country hardware store, :ur. McKELLAR. I want to call the Senate's attention to that does not have $5,000 worth of business a year, to compel it the argument made by the distinguished Senator from Utah to pay $50 where it may not sen $50 worth of revolvers or guns just a moment ago. He talked .about its being a vicious prac­ in the whole year. I think the amendment is really not for the tice to interfere with the affairs of the States in this way. ·I purpose of taxation or for the purpose of revenue but rather for call attention to the fact that yesterday, when we were consid­ the purpose of regulation, and that $5 would be better than $50. -ering the question of a tax on hotels, the Senator himself in­ Mr. HITCHCOCK. If the Senator thinks $50 is excessive, I vaded his own doctrine of State rights by voting to place a tax am willing to make it $25. on hotels. Mr. McCUl\ffiER. I think even $25 is excessive on the little Mr. HITCHCOCK. I sympathize with what the Senator country stores. from Utah has said, and I would not be a party to such an Mr. TOWNSlJJND. Mr. President, I am a little disturbed effort if it were not for the fact that this is really in aid of over the expense this kind of proposition is going to incur. I State efforts, rather than in anta.gonism of them. It is not am wondering if .-even $50 would pay the expense of the Gov­ usurping any function of the State, but it is in aid of what a ernment in enforcing the law. good many States have already done. Mr. HITCHCOCK. I will say in answer to the Senator Mr. ASHURST. Mr. President, I am in Syil)pathy with the from Michigan that the Government is enforcing the law on Senator's amendment, but I propose this for his consideration, tobac.co dealers all over the country, and formerly enforced Whether he should not insert on line 6 of his amendment the it on liquor dealers. The same representatives of the Internal­ word ".county." For instance it reads now- Revenue Department who do one could do the other. I think This record shall always be open to inspection by representatives of that is the answer to that proposition. the Treasury Department or by .any officer of justice, State or F-ederal. 1\Ir. McLEAN. Mr. President, it seems to me that the Sena­ It occurs to me that especially in our Western States the tor's tax will be prohibitive. In a great many cases we know sheriff and the attorney of a county are the peace officers, the that most of the country stores keep cartridges to accommo­ officers of justice, and if they were required to call upon the date boys in the community at this time of the year. In a good State officials to get the evidence or inspect these records they many places I imagine the total sales of those cartridges would would be making continual trips to the capital, whereas I think not amount to $25 a year, and it is a great accommodation to it would promote the enforcement of the law if the officers of those boys. While I fully sympathize with the purpose of CONGRESSIONAL RECORD-SENATE. NOVEJ\IBER 2, the Senator, it seems to me that he has his license fee alto­ very desirable and it would receive careful consideration. For gether too high, because I know that a great many small stores ·myself, I like to have a gun around if I am in a dangerous might not sell $10 worth of stuff in a year. neighborhood. Others may differ. Mr. HITCHCOCK. I think the answer to that is that if 1\lr. HITCHCOCK. I have not said that I objected to a they sell only $10 worth, it is an indication that there is a very citizen having a gun or weapon in his home, or even in his small demand and very few people would be inconvenienced. automobile, or even in his pocket. I am not seeking to regulate l\Ir. McLEAN. But it is a very great accommodation to the that. What I am seeking to do is to levy a tax upon these irre­ boys who live in the neighborhood. They might be 50 miles sponsible dealers who expose for sale in the worst parts of· our from a town where they could get what they want. cities these cheap firearms, which are absolutely a temptation ~Ir. BRANDEGEE. Mr. President, would not the Senator be to the criminal and vicious class as they are exposed to sale. content to make the tax a percentage on the amount of sales and What I propose is nothing more than a tax similar to other omit the tax on the dealer? That would accomplish the pur­ taxes that have been imposed in the bill, and that have been pose, it seems to me. He could have his regulatory provision imposed heretofore by the Cqngress on various other occu­ about keeping the records just the same. The big dealer in pations. Ne\Y York may sell hundreds of thousands of dollars of these But if the Senator from Connecticut and the Senator from sporting goods, while the little country dealer may, as the Sena­ Michigan think the tax is excessive, as the Senator from North tor has said, sell only $10 worth a year. Why not make it a Dakota expressed it, I will reduce it to $20 and leave it to the percentage on the amount of the sales or the value of the committee when the matter gets into conference to say whether sale ? they find it necessary to make a further reduction. Mr. HITCHCOCK. I think there ought to be a tax on the Mr. McCUMBER. Suppose there is a little place that has not concern for doing the business. It is a fact that while I pro­ a population of 20 heads of families, and yet there is a little po e $50 in this case, we have levied many $50 taxes in the country hardware store which carries two or three revolvers, bill. and perhaps sells two a year. Wop.ld the Senator tax that ~Ir. BRANDEGEE. This is not a situation :where no other dealer $20 for selling those revolvers? There are any quanticy business is conducted in the same. store, but. a country store or of those little hardware stores all over the country that sell notion store deals in a thousand or more articles. This may be these things. I certainly would not be in favor of going over only one, and why make him register as a dealer in firearms $5, because the real purpose is not to get revenue. The real when he carries in stock only half a dozen pistols? purpose is to regulate the sale and keep tab on all who purchase fr. HITCHCOCK. I think that is for safety. .I am think· revolvers. I should not seriously object if the proposed tax ing of the big cities with these little stores generally located in were $2.50 to $5, but if it is anything above that I think it is the toughest neighborhood of the city, places .where the Sen­ too heavy for regulatory purposes. ator from Connecticut rarely goes. I have often, as a matter Mr. HITCHCOCK. In the hope of getting support I will ask of interest, when I have been in a strange town, walked into to perfect my amendment by reducing the annual tax to $20. these very neighborhoods and seen these deadly weapons ex­ That is less than half the amount of many of the taxes the bin po ed for. sale. Nearly every time we bear '-'f a murder it is already imposes on such concerns as shooting galleries and committed by a man who has bought his weapon in such a other places. I can not consider that it is excessive. · place. These places ought to be registered and there ought to . The PRESIDENT pro tempore. Th~ question is on the be a record of them. · amendment proposed by the Senator from Nebraska as modified. l\fr. BRANDEGEE. I do not object to the record. It is the The amendment was rejected. tax on the dealer to which I object. Mr. DIAL. I offer the amendment which I send to the desk. 1\lr. HITCHCOCK. I think the Senator will agree with me The PRESIDENT pro tempore. The amendment proposed by that most of"these dealers .are perfectly able to pay the tax the Senator from South Carolina will be stated. • and are the very class of people from whom we ought to col­ The ASSISTANT SECRETARY. On page 37, after line 3, it is lect the tax. proposed to insert a new paragraph, to read as follows: Mr. BRANDEGEE. Then put a tax on the value of the sales. {9) The rental value of a dwelling house and appurtenances thereof The big dealer in the city, about whom the Senator has spoken, furnished to a minister of the gospel as part of his compensation. and whom he wants to check and make keep a record, could be made to keep a record and pay in proportion to the amount Mr. PENROSE.' I will accept that amendment. of sales that he made; and the Senator would not hurt the The PRESIDENT pro tempore. The que~tion is on agreeing small dealer in the country town who is not exclusively a to the amendment. dealer in arms, but merely a country storekeeper. The amendment was agreed to. l\Ir. McLEAN. It seems to me anyone who wants to get a Mr. OVERMAN. I offer the amendment which I send to the murderous weapon with felonious intent will not be deterred desk. by this tax. I think the Senator's purpose is to secure regula­ The PRESIDENT pro tempore. The amendment propo ·ed tion so that the person who gets the weapon can be identified by the Senator from North Carolina will be stated. and the sale can be restricted. With that I concur, but it The ASSISTANT SECRETARY. On page 193, line 15, after the seems to me a very small tax on the article itself with the word "municipality," it is proposed to insert the following: otller requirements will serve every purpo~e the Senator seeks. Or of maintaining a cooperative or community center moving-picture theater. ~a~ot:~tt bt; ~:;~~s~ut a legitimate busine~ and impose a ;ift? 0 Mr. OVERMAN. I think the committee will accept that ~Ir. HITCHCOCK. We have taxed legitimate business all amendment. the \Yay through the bill in this very chapter. The PRESIDENT pro tempore. The question is on agreeing l\1r. McLEAN. I know that. to the amendment proposed by the Senator from North Carolina. ~ir. HITCHCOCK. We have levied $50 taxes on many dif­ Mr. PENROSE. I think it. would be well if the Senator from ferent businesses. North Carolina would enlighten the Senate as to just what is ~Ir. McLEAN. But '''e do not desire to add to them. We meant by the amendment. ba ,.e too many now. . Mr. OVERl\iAN. In the farm life schools in the country out­ l\Ir. HITCHCOCK. I do not think it is a hardship to make side of municipalities there have been established by the farm­ it $:-0, but if the committee would be willing to accept a $20 ers certain community centers, where they have little moYing­ tax I will do anything to get it started. I believe if it can be picture shows. I know of one instance where a man out in the once tried it will be found to be a very desirable C'!Ov~. country has turned his cow ·barn into a moving-picture theater, Mr. PENROSE. Mr. President, if the Senator will permit me, where he gathers the farmers and the farmers' children once a. I con. ·ider the principle unalterably vicious to make the revenue week to witness these little shows. The amendment proposes bill a vehicle through which to regulate the morals of the com­ to give the same privilege to such community centers as is munity. It should be confined to its legitimate purposes, the given to municipalities. I think the Senator from Penn ylvania · rai~ing of revenue in the least oppressive way to the community will agree to that. There can be no objection to it. that can be devised, and not to prohibit firearms in one com­ l\Ir. PENROSE. Mr. President, I have no objection to the munity as against another community which approves of the fundamental principle involved in the amendment. HoweYer, use of firearms, or even child labor laws or other enactments 1 think the amendment is very widely drawn. whic:h are often saddled on revenue bills. 1\Ir. OVERMAN. The amendment was drawn by the expert I hall always strenuously endeavor to confine such bills to of the committee, Dr. Adams, and it is all right. · their legitimate purpose, the raising of revenue for the Govern­ Mr. PENROSE. I think the experts should have had other ment. If the Senator objects to citizens carrying firearms or experts to watch them in this particular instance. -ive per­ having them in their residences or in their automobiles for pro­ haps can perfect the amendment in conference and see that the tection at night, it seems to me a separate measure would be co"· barn is properly safeguarded. 1921. CONGRESSIONAL RECORD-SENATE. 7163

Mr. KING. We may not tax the officials of sovereign States, because under the power of taxation we might destroy the effi­ ciency of and, indeed, the State government itself. A Terri­ tory is not in 'the same category as a State, and because we do not tax State officials, because we have not the authority so to do, it does not follow, it seems to me, logically, that we may not tax Territorial officials. Mr. WARREN. Why should local officials who live in a Ter­ ritory which would only be too glad to come into the Union as a State be penalized while they are there helping to upbuild the country? It seems to me that such officials should be treated · as fairly as the officials of the States. Mr. KING. But they live in a Territory and are subject to taxation. Mr. NEW. And they are taxed. Mr. KING. And they ought to be taxed, so far as I can see. Mr. NEW. Certainly they ought to be taxed, and they are taxed locally. Mr. KING. I sympathize very much with the position taken by the Senator; but it seems to me that the argument is not sound · that because we do not tax State officials-and we do not do it because we have not the authority-therefore we ought not to tax the officials of the Territories where we do have the authority to impose taxes. It does not seem to me that because our hands are tied with respect to the principle of taxation in the States we may not exercise the power in the Territori-es, where we have the undoubted authority. Mr. ~TEW. To tax them simply imposes upon them a burden from which, whatever the reason may be, similar officials in the States are entirely exempt. Mr. KING. The Senator, if he will pardon me, knows that individuals who are employed by private concerns in the United States, such as bookkeepers or private teachers or what riot, are taxed. They have to pay their income taxes. Mr. NEW. So do such persons in Hawaii. The amendment has no effect upon anybody except the particular local officers that I have just described. It is intended to put them on an equal footing with those who hold corresponding offices in the States. If that is not done, the local officers over there will haYe to pay a ta..'C from whicll local officers in the States of the Union are exempt. That is the whole story. · 1\:lr. KING. Federal officers pay taxes, and a Territory is a part of the Federal Government; it is not a State; it is not a sovereignty ; it breathes because of the power given to it to breathe under organic acts or some charter from the Federal Government. When a Territory is emancipated from its tutel­ age and becomes a State, then it may claim the constitutional privilege which State officials ·now claim; but in principle, Mr. President, I can see no reason why the officials of TerritoTies should not be taxed the same as other officials of the Federal Government. Mr. :r-..TEW. I think the Senate understands what the amend­ ment is designed to accomplish, and I ask fot· a vote upon it. Mr. HITCHCOCK. Mr. President, I have not understood yet whom the Senator proposes to exempt from taxation. Mr. NEW. I have said that the amendment merely applies to local officers of the Hawaiian Islands, such as school-teachers, the mayors of towns. and other purely local officers. They are not paid by the Federal Government; they are paid by the Territorial government. Mr. HITCBCOCK. Let me ask the Senator why do we not exempt school-teachers in Ohio or school-teachet·s in Indiana? Mr. NEW. School·teachers are taxed in Hawaii under the local laws. Mr. HITCHCOCK. Are not school-teachers taxed in Indiana? Mr. NEW. No; not by the Federal Government on the sala- ries they draw from the State. Mr. HITCHCOCK . . Certainly they are. 1\Ir. NE\V. Not at all. Mr. HITCHCOCK. They are taxed on their incomes. Mr. NE,V. Not at all. They are taxed in Ohio under the State law, and they are taxed in Indiana and Nebraska under the State law, but they are not taxed under the Federal law, as they are officers of the State. All I want is to give the corresponding local officers in Hawaii the same pri vileg(::j tlla t are extended to similar officers in the States. The PRESIDENT pro tempore. The question is on the amendment of the Senator from Indiana. [Putting the ques­ tion.] By tbe sound the noes seem to have it. Mr. NEW. I ask for a division. On a division, the amendment was agreed to. Mr. SIMMONS. Mr. President, I send to the desk an amend­ ment which ·J offer. 7164 CONGRESSIONAL RECORD-SENATE. NOVEMBER 2,

The PRESIDENT pro tempore. The Secretary will state th~ per cPnt capacity ..for tbe year; our average daily tux would be $301.50, or ::tl)out $132,000 per year. amendment offered by the Senator from North Carolina.. This hotel, as you perfeetly well know, is conservative, uut offer ~ as Mr. SIMMONS. I desire to call the attention of the chait·man much genuine comfort and luxmy without any abnormal frills as Los of the committee to the amendment I think he wm have no required . by people who live well at borne; anu after 20 years of most pamstaking ~ aretul management we have been aule to build up a good objection to it. • bu ·n . s, whl-ch is profitable but, as anyone ean see by our excess-profits The ASSISTANT SECRETARY. On page 40, in section 214. it is tru:e~. has not borne an_y abnot·mal profit And yet by thi :tm~nd­ proposed to add a separate paragraph immediately follo\ving mcut if we played the game as is the pirit lnid down in tlle amendment the profit in this business would not be worth the exertion. paragraph No. 6, so that it would follow line 18, to read us There are many cities where large botels exist, and in orne ca s in follows: this clcy, ·where the capital li.nve~ted has run into such enormous figurei that they hnve been forced to a rate in excess of the $5 per day basis. In case of losses arising from destruction of or damage to pro-perty Of course, in places where the public are required to go !Jy their needs where the property so destroyed ery powerful efforts to c.heck in the interest of justiee and fairness this letter, giving the costs this legislation. on one side and the charges on the other, should be inserted in Yours, very truly, ALLEN K. WHITE, the R.ECO:RD. Vice Pre:siden.t. I ask unanimous consent that that be done. Mr. TRAMMELL. Mr. President, I offer the :..mendment Mr. KING. Mr. President, may I inquire <>f the Senator by which I send to the desk. whom these figures have been prepared? The PRESIDING OFFICER. The -amendment will be stated. Mr. EDG.E. They have been prepared by the :Mru·lborough­ The ASSISTANT SECRETARY. Qn page 4~. in line 10, it is Blenheim Hotel Co., of Atlantic City, N. J., one of the largest proposed to strike out the word "eighteen," a,nd in lieu thereof resort hotels in the United States. to insert the word " twenty-one," so that, if amended, the Mr. KING. Of ,course the Senator knows that the hotel paragraph will read: · keepers of Atlantic City have carried on a very extensive propa­ (d) Four bundred dollars for each person (other. than husband or ganda against any taxation by the Federal Government. 1\lay I wife) dependent upon and reeeivlflg his chief support from th~ t~­ payllege. I do not quite understand why . A'rk\XTIC CITY, N. J., Scptem1Je1· 26, 1921. Hon. WALTER E. EDGB, the 11 o-e was arbitrarily :fixed at 18 years. If it was upon the · United States Senate, Waahitrgto1~, D. 0. theory that th~ boys and girls of the country should be re­ MY DEAR SENATOR : The figm·e which I mentioned to you yesterday as quired to get out and get to work when they are 18 year of representing what our tax would be if sectjon 907 became part of the age, that is a mistaken idea as to ~he ~ctual. experience of _the new tax law was not exactly correct, inasmuch as I had interpreted the mell!ling of the secontl paragraph that the tax should be applied to the average famil;- that is trying to g1'\"e 1ts childrer. a colleg1.ate full American-plan rate where such r~om if rented ou European plan education. would be more than :$5 per day or more than $8 per day. Under the If the boy or tLl.e girl goes out to earn hi or her livelihood interpretation which you gave me yesterday that the Ame:riean-plan guest in a room which would be on the European plan more than $5 at 18 or 19 years of nge, tllis exemption will not apply. It per day, or for two more than $8 per day, should be calculated at 10 applies only where the parents are contributing the principal per cent of the European rate for that room, I find that our tax for to-day, where the house count is 60 pm· cent of our- capacity count, part of the support to the minor.. I think we should raise the . w~uld be $289.10. Therefore, as our house count seems to average 75 age limit to 21 years, because, if we d~ not, with the people 1921. CONGRESSIONAL RECORD-SENATE. 7165

of moderate means or who are stru~gling to educate their end is not yet. These are but samples of the burdens which children and to give them a collegiate education you cut off and have been placed upon this Congress. eliminate the exemption at the very time they are under the The actual conditions of to-day are not the tlleoretical condi­ .greatest strain to furnish the money for the purpose of educat­ tions of 1920. The Congress, however, is confronted with the ing those children. Very few persons go into college before stupendous duty of raising money through taxes, at a time not they reach their eighteenth birthday. In the case of a person only of national depression but of world depression amounting of ample means, where the expense of a collegiate education in many countries to national bankruptcy, sufficient to pay our in no wise taxes the family to send their children to college, inherited obligations and to meet the expenses of government. it is not a matter of any concern. It is the family that is It will be admitted by every hone.st man that these obligations struggling to educate a boy or a girl, and to gtve them a were not the creation of the present· administration. They are, collegiate education, that this exemption will benefit to some however, ours now to meet, and the country naturally expects extent. that the party which has met several similar situations in the · I submit that we should change the age limit from 18 to 21, past following a Democratic administration, but none so bad and I propose the amendment in the hope that we may ac­ and so complicated as the present one, will do all that can be complish that object. done through legislation to bring order out of chaos and restore The PRESIDING OFFICER. The question is on the amend- normal conditions of prosperity in the United States. ment offered by the Senator from Florida. We are now considering the tax bill. We have had it before The amendment was rejected. the Senate. for more than a month. This should be a nonparti­ l\fr. TRAl\IMELL. I suggest the absence of a quorum. san measure. The best and most patriotic efforts of every Sen­ The PRESIDING OFFICER. The Secretary will call the ator should be put forth to this end, but due to the fact that a roll. few Senators have evidently felt that partisanship was a better The roll was called, and the following Senators answered to evidence of statesmanship than patriotic endeavor to secure a their names : law calculated to meet the fiscal needs of a country with closed Borah Gooding McKinley Smoot factories, idle millions, and depressed industry generally, our Brandegee Hale McLean Spencer duties have been made more difficult. Two-thirds of the time of Brous ard Harris McNary Stanley the Senate has been used by a few Senators who have iterated Bursum Heflin Nelson Sterling Calder Johnson New Sutherland and reiterated their political speeches, not with the hope e>en Cameron Jones, N.Mex. Newberry Swanson of making the legislation better, but for the purpose, sometimes Capper Kendrick Nicholson Townsend frankly admitted, of creating an adverse political sentiment Caraway Kenyon Norbeck Trammell Curtis Keyes Norris Underwood among the people. Facts count for little with these political Dial King Oddie _ Wadsworth orators, who evidently believe that they can fool the people Edge Ladd Overman Warren again. They must feel that their individual political fortunes at Ernst La Follette Penrose Watson, Ga. Fernald Lenroot Pittman Williams home are in a critical condition and that they are therefore Fletcher Lodge Poindexter Willis justified in employing any argument, however faulty or void of Frelingbuysen McCumber Sheppard facts, any device, however detrimental to the country's welfare, Gerry McKellar Simmons to delay or prevent action. No patriotic Senator is influenced The PRESIDING OFFICER. Sixty-two Senators having an­ by these political speeches. The people know these gentlemen swered to their names, there is a quorum present. and what they repre-sent. They were sick and tired of the Dem­ Mr. TOWNSEND. Mr. President, I am going to occupy the ocratic Party as a party in -November, 1920, because of its time of the Senate for a very few minutes in expressing some demonstrated incapacity to conduct the Government along the views I ha-v-e in reference to the pending bill and what has been lines of peace, progress, and prosperity, and at every opportunity done ill reference to it. I shall oceupy but a very few minutes. since they have expressed most emphatically their continuing Both of the great political parties · in the presidential cam­ disapproval. The people are not going to be deceived now by paign of 1920 promised the people that if intrusted with power demagogic appeals to passion and prejudice. they would revise the tax law to the end that it would be I do not wish my remarks to apply to those Democratic Sen­ simpler and reduce taxation. Certain specified taxes were to be ators who ha-ve been working, as I have been working, to obtain abolished, principally the so-called " excess-profits " tax. At least the best possible tax law. What I have said will apply where it . two Democratic Secretaries of the Treasury had recommended belongs and no one will wince unless he is hit. to Congress that such tax should be abolished. The Republican I complain at the rules of the Senate which will permit a few Party was specific in its platform on this subject. Its candidate Senators, at a cost of hundl'eds of thousands of dollars to the for President on several occasions advocated the abolition of people, to block legislation which must be enacted and at the the excess-profits tax, and a tremendous majority of the people same time inflict injury to the health and lives of those who C'llected him President on the platform containing the provision I want to perform their duty by compelling them to work unusual have mentioned, knowing that he was in accord with it. hours and under unfit conditions. I have introduced an amend­ The Republican platform also pledged the Republ can Party ment to the rules providing for limited cloture. I believe in to a reduction of Government expenses to the actual needs of free, unlimited debate when it is devoted to the subject and is Government economically administered. I shall discuss this not a repetition again and again of the same thing. I do not pledge here~fter. believe that the time will ever come when the salvation of popu­ Platform pledges are always more easily made than per­ lar government will depend upon the lung power of a few Sen­ formed. But there was no division of sentiment as to the needs ators, however gifted. Our elections occur too frequently, the of economy and taxation reforms. Tile country was suffering people are too intelligent and too powerful to permit permanent from the disturbed conditions of the greatest war of history. It danger to their institutions from the denial to any Senator the was in that war 18 months, and yet many of its costs were more right to talk a week or ten days on any subject. :My resolution ' than those of the individual allies during their four years of is now before the Committee on Rules and I am demanding as warfare. Due to the delays in preparation for war and to the best I can that action be taken upon it, and I shall govern my tremendous waste and inefficiency~ and worse, our expenditures action according to what the Committee on Rules may do. mounted into the billions. Our obligations and liabilities were But I have digressed from my original plan to discuss the tax not at all understood at the time of the national conventions. problem before us. 'Ve knew they were appalling, but the full extent of the liabili­ Both parties were pledged to repeal the excess-profits tax. All t ies which the new administration was to inherit from the old economists agree that except as a war tax it is inimical to busi­ was not known. Indeed, they are not even yet fully understood. ness prosperity and beneficial to no one. It is true that the war We knew that hundreds of millions of dollars had been ex­ is over, but the effects and burdens of war are still with us. The pended in the Airplane Service, from which but little benefit needs of the present year are now practically known, and to had been derived. We believed that of the billions that had repeal the excess-profits act for 1921 would be unwise, and I be­ been voted to the Emergency Fleet Corporation and the Ship­ lieve that no political platform would now propose such repeal. ping Board a large portion had been worse than wasted, but We must meet conditions as they exist and not as we hoped in we had not a faint idea of the complications of this branch of 1920 that they would be. The bill does abolish this tax for 1922, the service and the enormous extra costs which the settlement and in so abolishing it I am satisfied that we have complied with of _this matter would require if from the flotsam and jetsam an our pledge to the people. ~erican merchant marine is to be secured. We were told in The highest estimate from excess-profits tax under existing "\larch, 1919, when the railroads were turned back to their law for 1922 is $450,000,000. It has already dropped from over owners, that the Government had run behind only $300,000,000 two billion in 1917 to $750,000,000 this year, anj unless business during the period of its operation of them. We afterwards is revived and prosperity restored there will be no excess profits learned that this deficit would exceed a billion dollars, and the next year, which means greater business depression, more unem- LXI--451.. 7166 CONGRESSIONAL RECORD-SENATE. N OVEJ\IBER 2' ployment, and less ability to pay the expenses of government. injustice. Of course, I do not expect that with the varying Senators say that this compliance with a solemn pledge to the conditions which surround even the same kind of business that people will relieve the rich and the profiteer. I neither hate any tax law can be framed that will be exactly fair and equi­ nor love the rich because of their wealth. "A man's a man for table at all. The one great fact is, we must have the money if a' that." I am not even moderately rich. I have never tried the Government is to function and meet its obligations, and all to amas a fortune. I probably would have failed if I had tried, I can reasonably hope for under the circumstances is an ap­ for I have not the gift for making money. I regard it generally proximation of what is right. as a gift, the same as I do that of music, or painting, or mathe­ The income tax, in my judgment, is here to stay as a part of matics, or invention. I have frequently wondered what would our fiscal system. It is based upon the theory which I have have happened to the world if there had been no men of great mentioned, namely, that the taxes must be paid by those who business genius and courage. I have stumbled unseeing over are able to pay them. It is applied to individuals. The income busine s opportunities which others have seen and improved, which comes to the individual, either from dividends on stock with the result that the world has been made richer and better in corporations or from otner sources, is taxed first by a flat and happier. Men and women have been given employment, tax of 8 per cent, except that a citizen or resident of the United the wheels of industry and commerce have been made to turn; States is taxed only 4 per cent under the proposed bill on the in fact every material thing which we now enjoy has been made first $4,000 of his income. pos ·ible through business genius. It is true that this very The surtax is a graded tax. The House placed a limit of 32 genius or ability has placed its possessor where be should bear per cent upon the incomes in 1922 in excess of $66,000 per year. the heavier burdens of government. Where the money is, there The amendment of the Senate increases that limit to 50 per cent the Go\ernment must go for taxes, and that is where this bill as the maximum on all incomes in excess of $200,000 per annum. does go. Every man knows, even the demagogue probably This amendment to the existing surtax provision is a general know , that the one great duty of Congress now is to promote reduction of existing rates, but higher than the House provision. a return to national prosperity, under which alone can all of I am satisfied that the needs for revenue at the present time our-people be peaceful and happy. Men who never ga>e another require the increase proposed by the Senate. By this increase man a day's work, who never contributed a material thing of and the increased capital-stock tax it has largely been made value to the world, who never made a dollar except upon the possible to repeal the tax on freight, express, and transporta­ misfortunes and troubles of others, are the loudest and most tion, and to abolish most of the so-called nuisance taxes which voluble critics of those who develop the resources of the coun­ greatly annoy the people and which are difficult of collection. try and furnish opportunity and employment to the people. The bill as it will finally be enacted will not be approved by It must not be forgotten, either, that when Senators are talk­ anyone in every particular. No tax law was ever enacted which ing about exempting the rich through a repeal of the excess­ did receive such approval. As I have stated, the differing con­ profits law they want the people to understand that the very ditions under which the same kinds of business are conducted large ami rich corporations are the ones relieved. The fact is, make it impossible that a general law will be equitable to all, however, that the greatest share of excess profits comes from and yet a general l!l;W applicable to specific classes of business the corporations of small capital to whose affairs a few active, is the only law that can be lawfully enacted. Every patriotic hard-working business men have devoted their undi>ided time Senator recognizes the difficulties surrounding revenue legisla­ and attention. Their gross income is not large, but its per tion. It would be infinitely easier to assume the rOle of critic cent of capital is large. These are the corporations which pay and place obstacles in the way as some Senators have done a large part of whatever excess-profits tax is paid, while the than to assume the responsibility of honestly trying at least to United States Steel Corporation, with a large capital, earns obtain a law which would be approximately light. less than 8 per cent, and inasmuch as the exemption of corpora­ I ha>e stated that pledges were made to the people to the tions is $3,000 plus 8 per cent of the capital no excess profits effect that their tax law would be simplified. That the exist­ are assessed, and a repeal of the excess-profits tax would not ing statute is cumbersome and complicated every man who has affect it. had anything to do with making tax returns readily under­ Take the case of corporations of $25,000 capital, where two or stands, and it does not seem to me that the pending measure three stockholders devote their personal energies to the busi­ greatly relieves the situation. The experts from the department ness, with the result that they earn $25,000 net. That is 100 per who have assisted in the preparation of the bill are familiar cent of their capital. This corporation would be assessed under with cases which have risen in the department during the ad­ the existing law about $5,000 as excess profits, while the United ministration of the act, and they have naturally sought to States Steel Co., with its billions of earnings, would no.t pay overcome these obstacles. They probably have succeeded. But one cent. No one can detest more than I do the man who took in dealing with special cases it is possible that they have over­ advantage of war conditions to profiteer. His name is legion, looked their exact relation to other matters, and I am not wise and so far as contact with the people is concerned, he is not a enough to determine this fact · if it shall prove to be a fact. corporation. He is a self-righteous business man, who found Naturally the Congress was obliged either to rely upon the it easy to mark up the goods on his shelves and sell for what he present methods of taxation. or else write a new scheme. The could get from customers with pockets full of easy money. He only alternati>e to existing methods is the plan suggested by is the laboring man who profited by the absence of fellow work­ the senior Senator from Utah, known as the "manufacturers' men in the war, the hotel man, the merchant, the baker, the sales tax." I confess that I have been unable to understand candlestick maker. These were the most offending profiteers, just bow it could be made to work equitably in its effect upon who all along the road from production to consumption took all of the people, and inasmuch as a modification of this plan their unrighteous tolls from the public. Of course, these offend­ is to be proposed I am waiting for further information. Of ers preyed upon each other, and their excuse for extortion was one thing I am satisfied, and that is that every tax which is "the other fellow does it." But much of the avails of profiteer­ imposed by the Government and which is capable of being ing has been dissipated and much of it was in ilands which passed on to the consumer is passed on, and he pays not alone could not be reached by the tax gatherer. This tax continued the tax but that tax multiplied sometimes many fold, and I next year would not reach the war profiteer at all, but would be ha\e n~ doubt whatever that if it were possible for us to paid by these small corporations, which contribute to the life determine just what taxes are carried along to the people it and support of the people and which are taxed almost to the would be infinitely better for the consumers, rich and poor, to limit under other provisions of this bill. pay the Government tax directly instead of paying it indirectly I shall have no hesitation in obeying the people's mandate after it has been made an actual source of revenue to the tax­ given to me in the election of 1920 and shall vote to repeal the payer upon whom it was originally levied. excess-profits tax for 1922. This repeal does not mean, however, that corporations sub­ If I shall be convinced that the revised Smoot plan is just ject to it under existing law are to be exempt from taxation. and equitable to the people as a whole, I shall not hesitate to The pending bill provides for a 50 per cent increase of the flat substitute it for many of the propositions in tl1is bill. It cer­ corporation tax. Under existing law a large corporation like tainly is simpler. If when I understand it I shall believe ~t w~ll . the United States Steel Co. pays a tax of 10 per cent upon its not increase the taxes now paid by consumers and that 1t Will net earnings. Under the proposed bill it will pay 15 per cent. remove some of the perplexities of existing law, I shall vote for It would pay no excess-profits tax under existing law. This it. Whatever law we enact must be tested by experience, and partisan arguments or uninformed declarations should not proposed increase of 50 per cent in th~ corporation tax ~ work a hardship upon the small corporatiOn whose net earrungs deter any Senator from doing his duty. are small, and no one seems to be able to devise a provision In all my congressional experience I have never known such which will prevent every case of injustice. I voted for the unusual efforts to hinder revenue legislation and to misrepre­ Walsh amendment, not that I thought it was free from injustice sent and confuse the legislative issues. I am satisfied, however, but because in my judgment it somewhat reduced the proposed that the people understand the nature of our problems and the 1921. CONGRESSIONAL RECORD-SENATE. 7167

smoke screen that the opposition has thrown around it. They all the deliberation possible and see how far that argument jus­ know that the majority are as patriotic and as intelligent as tifies the conclusion which the distinguished Senator has those who have employed the cheapest and most petty methods reached. That is substantially the only argument which the of politics, either with the hope of benefiting their own des­ Senator presented to us here. The Senator would repeal the perate political fortunes or of hampering the present adminis­ excess-profits tax solely or almost entirely because' of the fact tration in its efforts to bring order out of the Democratic chaos that it does not collect any revenue from the so-called big cor­ which it inherited on the 4th of last March. porations of the country. I desire in conclusion to express my appreciation of the earnest Mr. TOWNSEND. Mr. President-- patriotic efforts of the Senate Finance Committee to solve the Mr. JONES of New Mexico. I yield to the Senator. almost unsolvable problem of taxation. It is impossible for me Mr. TOWNSEND. I am afraid I did not make myself very to conceive a more complex problem. The committee should clear if the Senator from New Mexico thinks what he has have received the help of every Senator. It has not received it. stated was the only argument I made in reference to the repeal It has, however, proceeded with great patience and is entitled of the excess-profits tax. I mentioned that as an incident to the to the gratitude of the country. argument which is made, that by its repeal we exempt the rich. Mr. JONES of New Mexico. Mr. President, I have just I brought it out in that connection; and I proceeded to show listened with a great degree of -interest to the remarks of the that we were not exempting the great rich by the repeal of the distinguished Senator from Michigan. I have had the pleasure excess-profits tax. I further argued or attempted to prove that of sitting at the council table with the Senator for weeks through the excess-profits tax the revenue that we would obtain and for months. I know that he is a man of undoubted in­ would be derived principally from corporations which ought tellectual integrity, and what he :has said, by reason of that not to be discriminated against in that way. fact, will undoubtedly carry considerable weight to the country. Mr. JONES of New Mexico. Mr. President, I do not think I do not feel like referring to the criticisms which he has that I failed to understand the Senator, and he has now merely made regarding the political speeches to which we have listened stated in other language what seems to be the necessary result during the pendency of the bill before the Senate. Necessarily of what I tried to portray a while ago. The Senator now refers a measure of this sort must involve what will ultimately be to the fact that the exemption of large corporations from this considered questions for political consideration by the people of tax is alleged to be an exemption of the very rich. the country. I do not believe that there has been any attempt Mr. President, in all fairness it seems to me that this question on the part of any Senator to occupy the time of the Senate in should be understood. The so-called big corporations, against discussing the bill with respect to its political features further which the people of this country have inveighed in the past, than to call attention to the features of the bill which will were corporations which were organized with a large capital undoubtedly be discussed during future political campaiglis. stock, with watered stock, and the people of the country re­ I did not rise, however, for the purpose of referring to those volted against the idea of paying large dividends or any divi­ matters, and I only wish to refer now to one phase of the dis­ dends upon watered stock. However, the great majority of the cussion just presented to us by the Senator from Michigan, for large corporations of the country to-day are not of that char­ whom I have the highest degree of respect and even an affec­ acter. Take the railroads of the country; they have not been tion. I only wish in the consideration of the bill not only that issuing any watered s~ock for a number of years. Take the Senators could all sit around the council table where we could United States Steel Corporation; it has been in existence for a discuss in a quiet and conversationa,I way the terms of the great many years, and I believe that it is now conceded that bill and the effect which we believe it will have upon the people that corporation has at least dollar for dollar of substantial of .the country, but I wish that we might broaden that field ani! assets for every dollar of its capital stock or bvnded indebted­ have the people of the country brought together in that way. ness. The result is that to~day there are but few of such cor­ Unfortunately, it seems to me, even in this sma]J. Chamber, porations as the people of this country revolted against some when we begin to discuss a bill of this sort the voice is neces­ years ago. Moreover, the capital stock of corporations is not sarily raised and there is an inducement, which apparently is the measure of the capital on which earnings are computed irresistible, to have what should be a quiet discussion con­ before the imposition of the excess-profits tax. The measure verted into something in the nature of a speech. In consider­ in such case is "invested capital." Watered stock is not con­ ing such a bill as this, I think it could be better done if we sidered. The net income amounting to 8 per cent of the "in­ could haYe that quiet and peaceful consideration which we get vested capital " which is exempted from the excess-profits tax around the council table. is computed upon the basis of capital actually employed in the The Senator from Michigan has referred to the repeal of the business. excess-profits taxes that it was promised the people during the As a further result to-day the so~called rich men of the coun­ last campaign and that its repeal had been recommended by two try are not the owners of the large corporations. They have Democratic Secretaries of the Treasury. That is true, but the distributed tQ.e stock in those corporations to the people of the provisions of law which should take the place of a repeal of country, until we find that the large corporations are now in the the excess-profits tax I do not believe were presented to the main mere aggregations of a large number of individual stock­ people of the country even by the Republicans dming the last holders. I wish Senators could realize that fact. campaign. After the corporations have been built up to the point where Certainly_the Democratic Secretaries of the Treasury offered the earning capacity amounts to but little, if any, more than a some other method of raising revenue to take the place of the very modest dividend upon the capital stock, that stock is dis­ excess-profits tax. One o:E-the methods which was recommended tributed through sales to the common people of the country. I undertook to present to the Senate a few days ago. I hope It is owned and held by those who have moderate· means; who that it will be further considered by the Senate. have small incomes, as a rule. So, to-day, inveighing against The Senator from Michigan, however, has not suggested any corporations because they are large is not a potent argument method for raising revenue to take the place of the repeal of which would justify the shaping of legislation merely for the the excess-profits tax which will not work greater hardships purpose of imposing a tax upon the so-called large corporation~ . upon the business of the country and upon the people of the I wish to remind the Senator further that, while the large country than if the excess-profits tax provision of the law corporations as a rule are not making profits which would be should remain. The Senator has cited one instance which un­ reached t>y the law, there are thousands of doubtedly affects some people of the United States, and will, other corporations, with moderate capitalization, or with small perhaps, reconcile them to a repeal of the excess-profits tax, capital, if you please, which are making less than 8 per cent provided they go no further in the consideration of the subject. upon their inYested capital. I believe there are at least 100,000 We all know that in past years it bas been considered a very of them, including corporations of large capital distributed popular thing among the masses of the people to deprecate the among a large number of people and corporations of small actiYities of large corporations. When orators attacked large capital owned by a few people making less than 8 per cent upon corporations they were always supposed to have struck a very their in\ested capital. For the sake of removing the excess­ popular chord. The Senator from Michigan indulges in that profits tax from those corporations which are making higlwr argument. He says the excess-profits tax should be repealed percentage of profits tha:Jf 8 per cent, for the sake of those few because it does not levy any burden upon the large corporations that are making the high profits, you would put the burden upun of the country. I believe the Senator is right in that state­ those which are now making 8 per cent or less profit on their ment, because it is a fact that many of the large corporations invested capital. of the country are not making and have not been making suffi­ The Senator from l\fichigan referred to the fact that the cor­ cient profits to bring them under the provision of the excess­ porations which were making excess profits haYe as a rule profits provisions of the law; but the Senator apparently re~ small capital, compared with some of the large corporations. ferred to that fact as the one justification for the repeal of the He is undoubtedly correct about that; but he argues that such excess-profits tax. I think we should analyze the matter with corporations are dependent for their prosperity not ul}on their 7168 OONGRESSION AL RECORD-SEN ATE. NOVEJ\IBER 2,

inve ted capital ·but upon the personal efforts and exertions tion bill; but, upon the question of whether or not it is germane, of tile owne'l·s and the managers of the business. Let me remind it is a part of the administration, and if passed as a separate the Senator and anyone else who desires to study this question law would still be a part of the administrative portion of this that in all of those cases before the excess-profits tax is ap­ bill. The Committee on Finance has already reported favor~ plied every one of the managers who was devoting his personal ably the same proposition that is now included in the Senator's efforts to the prosperity of the business has a salary allowed amendment. There is on the calendar, favorably reported, him before any profits of the corporation are taken into con­ a bill providing for an increase in the number of districts. I sideration. Instance after instance has developed where the think, although I am not certain-the Senator from North salaries of managing directors have been increased far beyonu Carolina can correct me if I am wrong-that there wa no anythipg of ·which they had ever previously dreamed. They opposition to the measure in the committee. I am certain, at have fl. right to raise their individual salaries to any point they least, that it was reported favorably and is on the calendar; plea. e, tmless the experts of the Treasury Department shatl and if there was any opposition it has escaped my memory. conclude that they are doing so solely and for the specific pur­ Mr. SIMMONS. Mr. President, my recollection is like that po e of defrauding the Government of revenue, and they have of the Senator from North Dakota. I know that I have not done it; they have increased their salaries, and deducted them myself opposed it, because I have known for some time that the as expenses and costs against the business of the corporation, Commissioner of Internal Revenue felt that he did not have just as high as their consciences and the experts of the Treas­ authority to appoint a sufficient number of collectors of internal ury would permit. revenue, and that the service had suffered very much on that Talk to me about relieving tllat kind of a concern which, after account. Mr. Roper was very much in favor of a larger increase having paid such salaries, upon its invested capital has earned than this. I think there ought to be an increase. a large profit, from a tax upon their profits in excess of a reason­ The PRESIDENT pro tempore. The Chair understands that able amount! Shall we take the tax off such concerns and the rules of the Senate do not require an amendment to be ger­ increase the tax by 50 per cent on those corporations which are mane to the subject matter of a- bill, with the exception of appro­ earning les than 8 per cent upon their net invested capital? priation bills, and therefore overrules the point of order. Talk to me about that being proper legislation! Is that what Mr. KING. Mr. President, I suggest the absence of a quorum. the Republican Party last year told the people of this cotmtry The PRESIDENT pro tempore. The Secretary will call the - would be their program? I say, no. If the people of the United roll. tates had understood it we would not have had the result which The' roll was called, and the following Senators answered to followed the last election. You simply talked about wanting their names : to take off the excess-profits ta..."\::. The people of this country Ashurst . Heflin McNary Shortridge never under too<'l what you proposed to put in the place of it. Borah Hitchcock Moses Sim~&'Ons They never understood that the thousands and hundred~ of thou­ Brandegee Johnson Myers Smoot Broussard Jones, N.Mex. Nelson Spencer sands of people of this country who had their all invested in a Bursum Jones, Wash. New Stanfield few shares of stock in a dividend-paying corporation earning not Calder Kendrick Newberry Stanley more than 8 per cent would have their taxes increased by 50 Cameron Kenyon Nicholson Sutherland Capper Keyes Norbeck Swanson per cent, while tnose other corporations making large profits Caraway King Norris Townsend we1e to have the exces -profits tax removed and to be permitted Cummins La Follette Oddie Trammell to retain all of their excess profits. You never told the people Curtis Lenroot Ove1·man Underwood Dial Lodge Phipps Wadsworth that; and now, when you undertake to justify what you pro­ Ernst McCormick Poindexter Walsh, Mass . po e, you talk about the large corporations; you condemn the . F)&tcher McCumber Pomerene Warren large corporations. Frelinghuysen McKellar Reed Watson, Ga. Hale McKinley Sheppard Watson, Ind. This is the fir t time in my career that I have ever heard such Harris McLean Shields Willis an argument as that come from the other side of the Chamber. The Democrats are the ones who have always been accused of The PRESIDEFT pro tempore. Sixty-eight Senators having being ao-ainst the laro-e corporations. Those on the other side of answered to their names, there is a quorum present. The ques­ the Chamber are the ones who have always been defending big tion is upon agreeing to the amendment proposed by the Senator business; but now, when you find that you want to relieve some from New York [l\1r. CALDER]. of :your pet corporations that are making large percentages of Mr. KING. I ask to have the amendment stated profit upon their capital, when they are of more importance to The PRESIDENT pro tempore. The amendment will be you than these hundreds of thousands of individual stockholders stated. in the large corporations, you begin to talk about large cor­ The ASSISTANT SECRETARY. On the last page of the bill, after porations! line 2, it is proposed to insert, with a heading : Is that the kind of an appeal you made to the people last n>CREASE IN 1::- t•nal through as you have framed it now I predict that when the revenue and the whole number of collectors of internal revenue shall not people find out what you really had in mind there will be a exceed 74." re,ulsion from one side .of this counb-y to the other. They will 1\Ir. KING. Mr. President, the amendment just submitted not permit the taxes of those who are making modest profits to by the Senator from New York has for its object the increasing be increased 50 per cent and the taxes of those who are making of the number of collection districts, and therefore the number higher profits to be removed or greatly reduced. of collectors, from 64 to 74; in other words, to add 10 more col­ 1\lr. CALDER. l\fr. President, I offer the amendment which lection districts to the already large number exi ting in the I end to the desk. country. If this amendment is adopted, it wlll add hundreds The PRESIDENT pro tempore. The Secretary will state if not thousands to the Federal · pay roll and co t the Govern­ the amendment proposed bY the Senator from New York. ment hundreds of thousands of dollars annually. However, The AsSISTANT SECRETARY. On page 294, the last .Q_age of this is ·in line with the economy which the Republican Party the bill, after line 2, it is proposed to insert a new heading is giving to the country. In this manner it is redeeming its and a ection to read as follows: • platform pledges. It went before the people promising an eco­ INCREASE IN INTERNAL-REVENUE COLLECTlON DISTRICTS. nomical administration. It charged that tlle Democratic Party, SEC. -. That section 3142 of the Revised Statutes is amended by during and sub equent to the war, had multiplied officer ~ , in­ adding at the end thereof a new paragraph to read as follows: "The whole number of collection districts for the collection of in­ creased the number of officeholders, and was guilty of extrava­ ternal revenue and the whole number of collectors of internal revenue gance in the conduct of the affairs of the Nation. shall not exceed 74." In every part of the land where Republican orators were heard, 1\fr. KING. l\fr. President, I raise a point of order against from the . present President of the United States down to the the amendment which has just been submitted. humblest spellbinder, in the big cities and in the rural districts, The PRESIDENT pro tempore. The Senator from Utah will one of the favorite themes, the chord that was played the most, state the point of order. was the alleged extravagance of the Democratic Party. It was ~Ir. KING. I will state frankly that I am not sure that it stated. that as soon as the Republican Party came into power is subject to a point of order, but we are considering now a bureaus and Federal agencies would be abolished and the revenue bill, and this amendment is not germane to the bill. number of officeholders reduced. It was claimed that 40,000 It relates to an entirely different subject matter. officeholders in Washington would be immediately discharged, That is the only point of order which it seems to me could and that hundreds of thousands of Federal employees would be be m·ged. separated from the service. · Mr. McCUMBER. Mr. President, I think, of course. the point Mr. President, the Republican Party, thoug'k it has been in of order is not very well taken, because this is not an appropria- power in the legislative branch of the Government for nearly 1921. CONGRESSIONAL RECORD-SENATE. 7169 tlu·ee yen.rs, has not exhibited that spirit of economy which all berths for thousands of hungry Republican office s£:ekers. If lovers of this Government would desire, :and now that they additional employees are required, Congress will willingly make .have all branches of the Government they have thrown to the the appropriations in order to bring business down to date, wind all of their professions and pledges, and we find from day but this is a scheme to create new collection districts and to to day schemes and plans and policies proposed by the majority. fasten upon the country permanently these additional offices which call for additional offices and officeholders. New depart­ and officeholders. ments bur aus Federal agencies, and instrumentalities are It is not temporary ; it is not limited to the period required being 'created a~d are to be created. These new creations will to bring the reports down to date or to a rectification of exist- · treugthen bm·eaucracy and provide places for tens of thousands ing evils, but it is proposed to permanently add thousands of of officeholders. Federal employees to the already swollen list. Mr. President, bureaucracy is so triumphant that scarcely '\Ve know that in some of the States there have been too any busine. s, even in the remotest hamlets of the land, can be many colleetion districts. In some States, such as Kentucky conducted without Federal surveillance,· if not supervision, and and North Carolina, wher-e in the past revenue was obtained agents or attorneys must be employed to protect the owners from the manufacture of alcoholic beverages, more collection of such business from the deadening :and,. destructive reo

of taxes is no reason why we should create offices by adding offices in the State to which they could go and adjust their tax an amendment to a tax bill. I sincerely hope that the Senator matters rather than to have only one district. from New York will leave the matter for separate action. I do not know whether my position, then, was sound or not. I have myself not any doubt these matters could all be taken The fact that the proposed plan would centralize these offices in care of, instead of creating additional districts, by simply some sense of the word appealed to me, but, clearly, if the adding some additional clerks in the offices which we already Treasury Department then felt that it would be in the interest have ; and when the time comes I think there can be just reasons of efficiency to decrease the number of collectors I am at a given why the bill should not pass at all; but we ought not loss to understand how there can be such a complete change to inject such a proposal upon the pending bill, if we are going of front by the Treasury Department, so that now they favor to pass it before the session ends. We have got enough trouble an increase in the number. ahead in connection with the bill now. Mr. McCORMICK. Mr. President-­ 1\fr. CALDER. Mr. President, it seems very fitting that this Mr. POMEREl\TE. I yield. amendment should be offered to this bill. The bill deals with Mr. McCORMICK. The then head of the Treasury believed the collection of internal revenue; that is the only subject with that efficiency could be increased in the railroad administration which it does deal. I know that on making iiiquiry in reference by consolidating the management. ' _ to this subject early in the spring the internal-revenue officials Mr. POMERENE. Well, Mr. President, we are not dis­ told me that it was exceedingly important that additional dis­ cussing the railroads now; that is another subject, which I tricts should be created. It was pointed out that in the city of may discuss at some later date, and perhaps there is not very New York, where we formerly had two districts, when the last much difference between the views of the Senator and my administration took one of those districts away it consider­ own views on that subject. ably interfered with the proper collection of the revenue. The 1\fr. McCORMICK. I am only suggesting that the then head Commissioner of Internal Revenue himself told me that it was of the Treasury Department held that consolidated, centralized possible to collect in the States and about greater New York management made for efficiency. at least $100,000,000 more revenue than was being collected if Mr. POMERENE. I realize that, but most of thB advisers another internal-revenue district, with a collector and other of the Treasury Department have been there for years. necessary officials, were established. Whether it is some of the new advisers who want new posi­ I am moved in my action on this matter by what I believe to tions I do not know, or whether some of the old advisers there be to the best interest of the Government in connection with the want to change their views, rightly or wrongly, I do not know; collection of revenue in my State. but I am perfectly clear in one thought, that the final deter­ The Senator from Idaho has proposed that I withdraw the mination of this subject should be left to some other occasion. amendment now. I regret that I can not do so, because I be­ Mr. FLETCHER. Mr. President, it seems to me this is just lieve that the amendment is in the interest of the Government another step to add a few more officeholders and employees and and should be adopted. agencies, thereby increasing instead of lessening the expendi­ Mr. BORAH. I have not any doubt the Senator is acting tures of the Government. A few years ago, as I remember, in in perfect good faith about the matter, so far as that is con­ 1909 or 1910, under President Taft the customs districts were cerned, but I think the creation of additional offices has really consolidated. Various customs districts along the coast and nothing to do with the tax provision. It ought not to be put in throughout the country were all considered, and a number of here. I think the Senator will :find before he gets through districts were consolidated into one. That policy, with ref­ with this tax bill that we have trouble enough ahead with- erence to the customs districts, it seems to me, might be a very out undertaking that. · excellent policy to pursue with reference to the internal-revenue Mr. CALDER. If the Senator will permit me, if the depart­ districts ; at any rate, if we provide for new districts we will ment lays ,before the Committee on Finance the fact that the have to have more collectors, many assistants, and numero.us creation of more districts will mean the collection of more reve­ clerks and other help, another office to take care of, all of which nue, and also will convenience the people who have to trans­ is bound to result in a very great increase in the expenses. act business with the internal-revenue office, it seems to me that Where are we going to end if we keep on adding new offices and would be a very good reason for the adoption of the amendment. new positions? The proposition is made here now to create 1\fr. BORAH. They have not laid any evidence before us. additional Federal judges-18, I believe, in number. That is the trouble now. They have simply come in with their Mr. POMERENE. Mr. President, will the Senator permit me ipse dixit that they. ought to have more additional districts. I to suggest that during the Taft administration the movement can go to the head of any department in Washington and get was set on foot to consolidate the customs districts? that kind of a statement. They have not given us the details Mr. FLETCHER. Yes; and it was done. . of it. 'Vhen they do undertake to give us the details in regard Mr. POMERENE. In Ohio there were several customs dis­ to it, in my opinion, we shall :find that the whole subject matter tricts; I do not remember the number now, but I think 4 or could be covered by providing a few additional assistants in perhaps 5. They were all consolidated under one office, with the offices which we already bave. headquarters in Cleveland, and that plan of organization has Mr. McCUMBER. 1\fr. President, I simply desire to ask the been continued ever since, and, I think, without lessening the Senator from Idaho if be was present when I read the Secre­ efficiency of the service. tary's letter? Mr. FLETCHER. Undoubtedly it has proven most satisfac­ 1\fr. BORAH. I was, and I beard the letter read. tory and has brought about a considerable saving in public 1\fr. McCUMBER. I thought the Secretary went into the expenditures. This simply means, I repeat, additional calls details, although, perhaps not, sufficiently to satisfy the Sen­ upon the Treasury of the Government to take care of additional ator; but I did not want the statement to go unchallenged that officeholders, additional offices, and outlays which are not re­ there had been nothing stated except a request made. quired. If we are going to begin to relieve of taxation the peo­ Mr. BORAH. I do not regard the statement of the Secretary ple of this country we must begin at the end where the money as detailed at all; I thought it was a very general generaliza­ goes out-we must diminish expenditures-otherwise we can tion ; but as to that there might be a difference of opinion. not reduce taxes. The demands upon the Treasury of the Gov­ Mr. POMERENE. Mr. President, I desire to express my ap­ ernment to-day, running into something like $4,000,000,000 per proval of the position taken by the Senator from Idaho [Mr. annum, are something enormous; we can scarcely comprehend BoRAH] that the consideration of this subject should be de­ what a billion dollars really means. ferred. I do it for the reason that during the period of the 1\Ir. McCUMBER. Mr. President-- 'Vorld War-I can not give the exact dates but those who are The PRESIDENT pro tempore. Does the Senator from Flor­ in touch with the Treasury Department can find out-the then ida yield to the Senator from North Dakota? Secretary of the Treasury had a scheme afoot whereby he was Mr. FLETCHER. I yield. not going to increase the number of collectors, but decrease Mr. McCUMBER. I was going to suggest to the Senator from them. Florida, as I know he would like to get along with the bill, In the State of Ohio there are four collection districts with that, as a friend of the amendment proposed by the Senator offices at Cleveland, Toledo, Columbus, and Cincinnati. The from New York, I am going to ask if be will not withdraw it Secretary's scheme at that time was to create one district in the at this time, as it is undoubtedly going to provoke considerable State of Ohio. He thought that it would be a matter of econ­ discussion, which I know he did not anticipate, inasmuch as omy; he thought that it would result in better administration. the plan proposed has already been recommended. by the com­ At that time I did not agree with him for this reason: It was mittee. If the Senator from New York will kindly do that, it just after we had enacted new revenue legislation which was might relieve us of taking up the time of the Senate in discuss­ goiJ~g very largely to increase the number of taxpayers. The ing this matter at the present time. offices were already organized, and I suggested that it would, Mr. FLETCHER. Of course, I do not care to discuss the perhaps, be more convenient for the taxpayers to have four matter if the Senator from New York intends to withdraw the CONGRESS! ON AL RECORD-SENATE. NOVEJ\IBER 2,

amendment. I am not seeking merely to take up the time of the Staff, which met this morning in the room of the Senator from Senate. New York [1\fr. WADswoRTH], knows how to apply to anybody Mr. CALDER. Mr. President, I think the amendment offered who belongs to the Army or has belonged to it. by me is a very meritorious one and ought to be adopted; I be­ Mr. BRANDEGEE. l\fr. President, will the Senator yield? lieTe it i in the interest of good administration of the Internal­ Mr. WATSON of Georgia. With pleasure. ReTenue Service; but it seems to have created a good deal of Mr. BRANDEGEE. In reference to the Senator's statement d · cus ion, and, in the opinion of members of the committee, that he is speaking without a moment's notice from the Senator ma.r delay the consideration of the bill I should not care to from Connecticut, I wish to say to him that this is merely a delay unduly the consideration of the bill, and for that reason I resolution to be referred to the Committee to Audit and Control withdraw the amendment. the Contingent Expenses of the Senate. I ask no action of the ::\fr. Sil\fMO:N S. Mr. President, before the Senator withdraws Senate. the amendment, if I may be permitted to say so, I have made Mr. WATSON of Georgia. I understand that thoroughly, l\Ir. some inquiries since the debate began, and I am satisfied that President. I know where you go when you start down the slide. if tllere is any present need for an increase it ought not to be Mr. BRANDEGEE. Mr. President, I went to the Senator so great an increase as is proposed in the Senator's amendment. from North Carolina [Mr. OVERMAN] and showed him the reso­ I am quite sure that if the Senator will talk to the Commis­ lution which I have just offered, the Senator being a member sioner of Internal Revenue he will reach that conclusion. In of the committee with me, and asked him if it was in proper view of the fact that we have just practically eliminated from form, and requested him to notify the Senator from Georgia to this bill the exce s-pro:fits tax, I think the work of the office be on the floor, because I intended to offer it. I consider that will be very considerably diminished. If the Senator decides that was notice to the Senator, and before I offered it I looked later to pre s his amendment, I think it ought not to provide for around and saw the Senator on the floor; so I do not feel that quite so many additional collectors. I was discourteous to him. I do not intend to be discourteous l\lr. FLETCHER. Then, do I understand that the proposed to the Senator. amendment is withdrawn? Mr. WATSON of Georgia. I am quite sure of that. The PRESIDENT pro tempore. The Chair desires to under­ Mr. BRANDEGEE. I thought I had shown him every proper stand the situation. Does the Senator from New York desire consideration. to withdraw his amendment? Mr. WATSON of Georgia. I am quite sure he thought so. Mr. CALDER. I withdraw the amendment. The Senator has always been courteous to the junior Senator The PRESIDENT pro tempore. Is there objection? The from Georgia. The Senator from North Carolina [Mr. OVER­ Chair hears none, and the amendment is withdrawn. MAN] told me just a moment ago that the Senator from Con­ INVESTIGATION OF TREATMENT OF SOLDIERS. necticut would introduce such a resolution, and would give me notice. Of course I thought that would be something like a 1\Ir. BRAl~DEGEE. l\Ir. President, the Senator from North real notice, and that it would not be jumped on me just a Dakota has kindly agreed to yield to me for the purpose of minute afterwards. offering a resolution for reference to the Committee to Audit Mr. BRANDEGEE. lli. President, there is no question about and Control the Contingent Expenses of the Senate. I send the jumping anything orr the Senator. This is· the formal resolu­ resolution to the desk. tion that every committee introduces when it is instructed by The PRESIDENT pro tempore. Is there objection? The the Senate to investigate anything-merely authority to employ Chair hears none, and the Secretary will read the resolution. a s.tenographer to report the proceedings and to pay the ex­ The reading clerk read the resolution ( S. Res. 165), as fol­ penses of the witnesses. lows: Mr. WATSON of Georgia. I am going to save the Senator Resolved, That the special committee appointed by the Chair to invite the junior Senator from Georgia to appear before them and to investi­ from Connecticut some trouble and some time, if he will gate the charges made by him atrecting the conduct of officers of the allow me. Army in inflicting punishment upon enlisted men of the Expeditionary Mr. BRANDEGEE. I went to the Senator from North Caro­ Forces in the late war is hereby authorized, until it finishes said in­ ve tigation and repo1·ts, to send for persons, books, and papers, to ad­ lina and said, " Will you notify the Senator from Georgia? " minister oaths and employ a stenographer, at a cost not to exceed He said, "Why, he is right on the floor now." The. only object $1.25 per printed page, to report such hearings as may be had in con­ of a notice was to get the Senator on the floor, and if he was nection with the subject pending before said ·committee, the expenses thereof to be paid out of the contingent fund of the Senate upon au­ here on the floor already I did not see the object of going and thorization of the chairman, and that the committee, or any subcom­ getting him on the floor and giving him further notice. If the mittee thereof, may sit during the sessions or reces es of the Senate Senator is in any way embarrassed or taken by surprise, or at any place. wants more time, I will willingly withdraw the resolution until D-..:.·ing the rending of the resolution- he has time to consider the question. 1\fr. "WATSON of Georgia. Mr. President, will the Secre­ Mr. WATSON of Georgia. I am not in the least embarrassed. tary read more slowly? I am not aslting for time. After the reading of the resolution- Mr. BRANDEGEE. My remarks are evoked simply by the Mr. BRANDEGEE. Mr. President, inasmuch as there was Senator's remark that the Senator from Connecticut did this some conversation in the Chamber and it was difficult to hear without any notice to him. the Secretary, I ask that the resolution be read again, so that Mr. WATSON of Georgia. To me. The Senator from North all may understand it. Carolina said the notice would be given to me, and it was not The PRESIDENT pro tempore. The Secretary will again given to me. read the resolution. Mr. BRANDEGEE. I have nothing more to say upon that The resolution was read a second time. question. 1\Ir. BRANDEGEE. Mr. President, I ask that the resolution, Mr. WATSON of Georgia. Mr. President, I want to say that under the statute, may be referred to the Committee to Audit these charges were made here openly on·the floor of the Senate, and Control the Contingent Expenses of the Senate. and I am going to meet them here as openly on the floor of the Mr. WATSON of Georgia. Mr. President, because of the Senate. I am not going to be bottled up in any committee room speech which I made on the floor of the Senate touching the and have the evidence entombed in some report that nobody treatment of our soldiers while they were in France I was, will read. When I get through-and it will take me some days without notice and in tlie most insolent manner, attacked by to gather my testimonY.-what I say in answer to the Senator the chairman of the Military Affairs Committee yesterday, and from New York will be read by the millions of people of. this he wound up by saying that be demanded that I come before country; the newspapers will have to carry it, because it will his committee. I replied to him, as any Senator of spirit would be good reading matter. I assure you it will. It will be good have done; I thought his manner and his whole bearing was copy. You need not doubt that. supercilious, contemptuous, and intolerant, and I told him so. The charges I made bere on the floor were maue substan­ I told him I would :fight it out with him here, face to face. That tially by Senator Chamberlain here in December, 1918. Have is what I am going to do. I am going to fight it out here with Senators forgotten it? . Did they appoint a committee to inves­ him, face to face. The whole country shall hear it. The whole tigate him, and seek to bury him in somebody's committee room? country shall know it. The Senator fi•om New York said he could count on the fin­ True, I afterwards said, during the impromptu remarks which gers of one hand the .American soldiers who had been executed I made then, as I am making them now, without a moment's by their officers in France. This morning's paper, the Post, notice from rriy friend the Senator from Connecticut-without gives a statement of the Secretary of War doubling the number one moment's notice-that I would go before any impartial com­ of the Senator from New York. There is one authority directly mittee, provided the ex-service men or the service men, in conflicting With the other. Which one is correct? The Secre· other words the witne ses, would be guaranteed immunity from tary of War or the chairman of the l\1ilitary Affairs Committee? per ecution-just that kind of punishment which the General I gave the number as twice that much, and I gave the song as. 1 1921. CONGRESSIONAL RECORD-SEN ATE. 7173 it was given to me. I took it in good faith, and I stated it here ruling. The present occupant of the chair rules so fairly and in good faith. so justly, and pleases me so well all the. time, that even if I 1\Ir. President, in the very long and able speech made by Sen­ thought he was wrong I would not want to say so. But I ator Chamberlain. interrupted from time to time by Senators beg to suggest that when a resolution is offered under unanimous McCuMBER and LA FoLLETTE and KING, there was just one consent the proposition is then for the first time before the statement that he did not ma.ke. In that whole speech there is body, and before it goes to any committee at all the Senate no intenJal evidence that the Senator who made it had the least has the right to act upon it. We might refuse to let it be re­ iden that American soldiers were being swung up on gallows in ferred to. any committee, or we might decide to refer it to France. I do not believe that any Senator knew it until I made some other committee than the Committee to Audit and Con­ the statement in the short speech that has been so bitterly ar­ trol the Contingent Expenses of the Senate, and by vote we can raigned here by the Senator from New York [Mr. W ADSWOBTH], do that. demanding that I appear before his committee. M:y comrnis- Mr. BRANDEGEE. A statute controls the reference. ion commands me to appear here before you, Senators, and I Mr. McCUMBER. I think probably the Senator from Missouri am here. You will hear every word I have to say if you want to misapprehends the purpose of the resolution. hear it, and the country will hear it, too. 1\Ir. REED. I know its purpose. I had no idea that the small kodak photograph of that gallows Mr. McCUMBER. A committee has already been appointed. at Gievres, in France, could be produced until I could have time Mr. REED. I understand that. to end home to Thomson, Ga., and have mY library searched; Mr. McCUMBER. This is simply asking authority to pro­ and there was nobody there who could have found it. I would ceed and to employ a stenographer-- have had to send my secretary there to find it; but it was Mr. REED. I understand. handed to me here in the course of the debate, and now that pic­ Mr. McCUMBER. Let me just finish the sentence. The ture will be in all the papers, and for the first time the American Senator from Connecticut asked me to yield to him simply to people, who suffered their heatless days and their wheatless have the resolution introduced and referred, and I suggested days, and who were never given any Hooverless days, who had to that I would do so if it would not evoke debate, but it evidently buy Liberty bonds, mortgage their property to. do it and borrow did evoke debate which the Senator from Connecticut did not money to do it, and had the Government's faith broken with expect. I am especially anxious to try to get rid of holding them after they had done it, will see tl1at gallows, and they an evening session this evening if we can, and I thought if we will ask, "By what authority did any American in France have could make pretty fair progress with the bill to-day it would to hang another?" · be an excuse to do so. That is the reason why I desired to Will the ·war Department reveal their records? Will they go on with the bill, if the Senator would allow us to do that. furnish to me or to any Senator the names of the commanders 1\fr. REED. As the Senator from North Dakota knows, I at Gievres? ·wm they furnish the names of the workmen who have been trying to help get tilis bill through in the last day built that gibbet, that gallows, for American soldiers? ·or two, as much as possible to shorten debate, and everything This morning there came into my office a statement of another of tila t sort. I have been cooperating, I think he will agree. man as to another camp where hanging took place, and in that I want to say a few words about this matter. Of course, I case the man who '''as strung up was a Negro soldier. The could say them after tile resolution was referred, but I . pre­ Pennsylvania ex-soldier wrote to me that he saw the hanging. ferred saying them before it was referred. I shall be very By what authority was that black man put to death in that brief, but I want to make a suggestion or two to the Senate in irnominious manner inside of the Amer~can lines in France'? regard to the matter. It is time our people knew the facts; it is time this military spirit Mr. BRANDEGEE. If the Senator will yield to me for a is made to understand that by the supreme law of this country brief remark, I suggest to the Senator from North Dakota that the military is subordinate to the civil power and not su­ we conclude this matter now, because we must take action. It per'ior to it. probably will not take over 10 minutes. The committee is ready l\1r. McCUMBER obtained the floor. to go to work, and it can not go to work until the resolution is Mr. REED. Mr. President-- adopted. The adoption of the resolution is necessary to the The PRESIDENT pro tempore. The resolution will be re­ carrying out of the order of the Senate, and it might as well be ferred to the Committee to Audit and Control the Contingent done this afternoon as to-morrow. · Ex.'penses of the Senate. 1\fr. McCUMBER. The Senator says it will take only a short Mr. REED. Before it is referred, I want to say something time, and I yield to the Senator from Missouri. about it, and I was on my feet trying to get recognition by the Mr. LODGE. If the Senator from Missouri will allow me, Chair. this is a matter of statute, not a matter of our rules. The Teso­ The PRESIDENT pro tempore. It is not debatable. lution has to go to the Committee to Audit and Control the Con­ Mr. REED. The question of a Senator's right to take the ingent Expenses of the Senate, under the law, after it has once floor, I think-- been received. This resolution was received, and there was no Mr. McCUMBER. I was recognized, though I do not know objection made. The Chair has no course to follow except to whether the Senator or myself was actually on his feet first; refer it. but I want to go on with the revenue bill. Mr. REED. I think I understand the situation. Mr. REED. I ask the Senator to yield to me for a question. 1\Ir. LODGE. I have no doubt the Senator did, but he stated Mr. BRANDEGEE. The Senator from North Dakota very it in such a way that I thought he did not. kindly yielded to me to ask unanimous consent. Mr. REED. The Senator will understand me in a moment. The PRESIDENT pro tempore. The Chair recognized the I am much obliged for the suggestion. Senator from North Dakota simply because he first heard that Mr. LODGE. The Senator said it could be referred or dis· Senator address the Chair. posed of in some other way. . Mr. BRANDEGEE. I want to make a suggestion to the Chair. 1\fr. REED. I still think so. It can be laid on the table. Tbe PRESIDENT pro tempore. Does the Senator from North The statute provides that before expenses shall be incurred in Dakota yield to the Senator from Connecticut? certain matters, which would cover this matter, the resolutions :Mr. McCUMBER. I yield, but I think it can be satisfactorily shall be referred to the Committee to Audit and Control the explained why we want to get through. Contingent Expe-nses of the Senate, but it does not say that such 1\fr. BRANDEGEE. I am in no hurry about it. I simply resolutions shall be referred to the committee; they are only to a ked unanimous consent, or, if I did not use the words be referred to tile committee in case the Senate sees fit. How­ "unanimous consent," I a.sked the Senate to allow me to intro­ ever, we can not expend the money until the committee has duce the resolution and ·have it referred to the committee. A acted. single objection, of course, will thwart that, and if the Senator Mr. LODGE. 'rhe language of the rule is that they shall be from Missouri objects to it, of course, I admit his right to do it; 1·eferred. but I think that before the resolution is referred, any Senator l\1r. REED. Certainly, they shall be referred to that com­ who wants to ought to have the privilege of objecting. mittee, provided we want to refer them anywhere. The PRESIDENT pro tempore. The Chair would like to Mr. LODGE. That condition does not appear in the rule. state his understanding of the parliamentary situation. The Mr. REED. Does anybody pretend to say that the Senate Senator from Connecticut asked unanimous consent to introduce can not now refuse to consider this proposition, or to do any­ tbe resolution. Thete was no objection, and it was made the thing with it? But, Mr. President, I care nothing about that. duty of the Chair by law to refer the resolution to the Com­ That is not what I rose to speak on, and Senators have taken mittee to Audit and Control the Contingent Expenses of the more time now in trying to instruct me than it would have Senate. taken me to say what I want to say. Mr. REED. Mr. President, I do not want to get into any I have no desire to criticize the Army or the Navy of the kind of an argument with the Chair about the propriety of his United States, and I want what I am about to sa::v to be under- 7174 CONGRESSIONAL RECORD-· SENATE. NOVEl\fBER 2,

stood in the light of that statement; but I am of the opinion facts are true. That is no imputation against the Senator from that the whole proce.eding, in which this is a necessary step if Georgia. The Senator from Georgia may have been mistakenly the proceeding is to continue, is a very grave mistake. informed. His witnesses may be deceiving him. I do not The privileges of the Senate are of a very high character. A lmow. It is the purpose of the committee to find out whether Senator comes to this body as the representative of a great the WOrds printed in the CONGRESSIONAL RECORD, as uttered by sovereign State, sovereign in every respect except as it has the Senator from Georgia, involving alleged grave offenses by yielded some of its rights to the Federal Government by be­ Army officers, are true. That is all there is to it. It is merely coming a part of the Federal Union. The responsibility of a an investigation of a question of fact Senator is to the people of his State, and any limitation upon Mr. REED. I understand the Senator's position. that authority and that responsibility is something which never Mr. BRANDEGEE. If the charges are true, as stated by the should be undertaken, and which I think lies entirely outside Senator from Georgia, the Army officers who committed the the power of the Senate, except a Senator has so demeaned him­ deeds that he stated are murderers and they themselves ought self that some 1\!ember of the Senate sees fit to file a charge to be hanged. against him for conduct unworthy a Senator, and bring him to Mr. REED. If I were going to be subjected to an inquisition the bar of the Senate for trial. or inquiry in any case, there is no man in the world I would Mr. ·wATSON of Indiana. Will the Senator yield? rather have sit as president of the court than the ·Senator .Mr. REED. I will yield for a question. from Connecticut. I say that meaning it. But I have not been Mr. WATSON of Indiana. That is all. Does the Senator allowed to state my position, and I am stating it with great think that we have no right to investigate a charge made seriousness, because I think it involves a great matter. against the Army simply because it was made by a Senator? Now, if I may be permitted to resume, a Senator elected to Mr. REED. Oh, I have not said that. this body ·by his State is responsible to the people of his State. Mr. WATSON of Indiana. That is what I understood the I hold that he can, upon the floor of the Senate, make any Senator to say. statement he desires to make and that he is answerable to Mr. WATSON of Georgia. Let me answer in a minute. nobody anywhere for it, provided he has not violated some There has been a persistent effort here to put me in a false po­ rule of the Senate or violated the common l'l1'1.es of decency. sition. I have not attacked the Army, and I stated so. I at­ If he has violated the rules of the Senate or violated the rules tacked certain officers in a certain place. I did not attack the of decency, then he must be put directly on his trial by a Army. charge which somebody sees fit to father, and he must be per­ Mr. ·wATSON of Indiana. Certain officers? mitted his day 'in court and his defense. But outside of that 1\fr. WATSON of Georgia. You can not indict a whole peo­ he speaks here in his responsibility as a Senator, answerable ple, and you can not indict an army of 4,000,000 men. I did to his constituents for what he may say. not undertake to do so, and I said so here on the floor of the It is a new custom, if it is to become a custom, that when Senate. a Senator makes a statement of fact on the floor immediately Mr. "\V ATSON of Indiana. The Senator has not attacked some one proposes to have an inquisition as to the truthfulness certain officers, but uncertain officers. of his statement. This is not a resolution offered by a Senator Mr. WATSON of Georgia. I am trying to get their names to investigate a particular state of facts. It is a resolution now. I have written to the War Department for them . . which in its very language is to investigate the truth of a Mr. 'VATSON of Indiana. Be that as it may, does the Sen­ statement made by a Senator on this floor in open debate. ator from Georgia hold that when he made a charge against Here is the resolution: officers of the Army, certain or uncertain, the Senate bas no Resolved, That a special committee be appointed by the Chair to right to investigate his charges simply because those charges invite the junior Senator from Georgia to appear before them and to were made by a Senator? investigate the charges made by him affecting the conduct of the Mr. REED. That is not the case here. officers of the Army in inflicting punishment upon enlisted men- Mr. 'VATSON of Indiana. I understood that to be precisely And so forth. the statement made by the Senator from Missouri. If I am A Senator has made a speech. Another Senator rises and ·wrong-- proposes to appolnt a committee to call that Senator before Mr. REED. I do not want to have a quarrel with my friend the committee and to have the committee try and determine from Indiana about my phraseology. I did not say that. whether the statements that he made upon the floor can be Mr. LODGE. Something equivalent to it. substantiated or not. In other words, if th\s is to become the Mr. REED. No; I did not say something equivalent to it. precedent which we are to follow, then every time a Senator The ~ECORD will show exactly what I said. I said that a Sen­ makes a statement upon the floor, instead of being subjected ator's responsibility is to the people of his State, and that in to no other punishment than that which follows the making of my opinion the Senate has no right to put him upon his trial a statement which can not be substantiated or that the public unless there is a charge made against him of a character which do not believe or that the Senate does not believe, although will warrant the Senate in disciplining him. That is the sub­ it may be true in every case, we will proceed to have a com­ stance of what I said. mittee investigate to find out and make a report whether what Mr. WATSON of Indiana. Will my friend yield to me? he said was in fact true. Mr. REED. I promised to get through quickly, and I can Mr. BRANDEGEE. Mr. President-- not yield to have a statement chopped in pieces before I get Mr. REED. Pardon me, just a moment-' - through making it. Perhaps the Senator will agree with me Mr. BRANDEGEE. In the Senate of the United States, if he will let me take a moment. But I will yield. when a Senator rises in his place on the floor and on his re­ Mr. WATSON of Indiana. I just want to ask this question: sponsibility as a Senator charges that Army officers of the The Senator says he does not believe that a Senator can be United States have hung men without any authority of law or placed on his trial. · Is there any effort here to try the Senator without any court-martial or any trial, does not the Senator from Georgia? think that it is our duty to find out whether our Army officers Mr. REED. If the Senator will listen a moment I think I are doing such things or not? can make myself plain, and I am appealing on this question to Mr. REED. If that is the desire of the Senate, then let the the Senate on grounds that are absolutely impersonal; that have resolution be offered to investigate the conduct of the Army, nothing to do with the particular charge or with the Senator and not to investigate the gpeech of the Senator, which is exactly who made it. what this resolution in form and manner proposes to do. Mr. BRANDEGEE. Will the Senator yield to me? Mr. BRANDEGEE. If the Senator will kindly yield to me The PRESIDENT pro tempore. Does the Senator from Mis­ again, I think it is important at this place to put in the RECORD souri yield? the motion of the Senator from Wisconsin [Mr. LENROOT]. Mr. REED. I do. Mr. REED. Oh, I have the resolution. M1·. BRANDEGEE. As chairman of the committee which the Mr. BRANDEGEE. The Senator has the resolution which I Chair appointed, pursuant to a vote of the Senate, I want to offered-to pay the expenses of the committee. I read from disavow any purpose, on my part at least, of putting the the proceedings of the Senate the motion of the Senator from Senator from Georgia on trial. The Senator from Georgia Wisconsin, which appears in the REcoRD: earnestly believes, I have no doubt, that the charges he made Mr. LENROOT. • • • So, Mr. President, I move that the Chair ap­ against the administration of justice or the punishment of point a special committee of five Senators to invite the Senator from alleged offenses in the expeditionary forces were true. I am Georgia to appear before them and to investigate the charges which he sure he would not have made them on the floor and reiterated has made. them the next day unless he was thoroughly convinced that they Mr. REED. Exactly. were true. Thereupon the Senate instructed a committee to Mr. BRANDEGEE. The Senator from l\fissouri can not claim find out whether the charges are true, whether the alleged that when the Senate directs a committee to investigate charges 1921. CONGRESSIONAL RECORD-SENATE. 7175 made by a Senator against Army officers they are investigating sugar stocks in the markets, and every Senator in the body was the Senator or attempting to call him to account. summoned before a committee of the Senate and obliged to Mr. :REED. I do not think that argument is quite up to the state whether he had been speculating in sugar sto~ ks. level of the logic that my friend usually employs. A Senator Mr. REED. I remember it. makes a statement on the floor of the Senate and a resolution or 1\fr. LODGE. Very much more recently the Senator from motion is offered to invite that Senator before a committee and to North Carolina [Mr. OVERMAN] was chairman of a committee investigate the charges made by him. If charges were to be investigating lobbying, and every Senator was summoned before made which a Senator desired to have investigated, he would that committee to make a statement as to his own personal offer a resolution reciting the facts and demanding an investiga­ interest in property and what personal interest he had. I think tion. That is the way charges are made. the Senate committee had a perfect right to do that, even if it Twist this thing as you see fit to twist it, make all the refine­ was an implied reflection upon everyone; but the Senate has ments that you want to make, and this is what we are doing: grown more sensitive, evidently. · We are establishing the precedent that if a Senator takes the 1\Ir. REED. \Vhat has that to do with this case? floor and makes a statement of fact, then any Senatot' is fully Mr. LODGE. It seems to be the idea that a Senator can not warranted in rising immediately and making a motion to investi­ be invited to come before a Senate committee; that there is gate the charges made by that Senator and to demand that that something improper and undignified in his going before a com­ Senator shall come before a committee and produce his evidence. mittee of the body of which he is a Member. Mr. BRANDEGEE. Now, if the Senator will permit me Mr. REED. That is not the question at·au. right there, that is the way every investigation that the Senate Mr. LODGE. That is one of the questions the Senator has ever undertook was made. A Senator stands up here and says raised. he is informed in the public prints that there are riots in the Mr. REED. No; it is not a question I have raised at all. Mingo coal district and he asks for an investigation of the 1\fr. 1\10SES. Mr. President-- matter. Mr. REED. Just wait until I get through with this point Mr. REED. Exactly; he asks for it. and then I will yield to the Senator from New Hampshire. · Mr. BR.A.NDEGEE. Certainly. The question I raised is not that you call a Senator before a Mr. REED. The difference is that in this case, if a Senator committee to inquire generally of all Senators as to any par­ made a speech about the coal mines down there and saiu ticular interest he has in particular lobbying influences that something that some other Senator did not like, we would im­ may or may not be distasteful to the Senators. The question I mediately proceed to Investigate that Senator's speech. raised is the privilege of debate, the penalizing of a man and l\Ir. BRAl'lDEGEE. A Senator stands up here and alleges on putting a man upon his trial for a statement he makes in this information and belief, or that he has read in the public prints, forum of discussion. That is what you are doing here. You that the Chicago beef packers are a criminal trust, and he intro­ may do it in this instance because the Army is involved. I duces a resolution to investigate and see if they are violating shall say a word n.bout that in a moment; but that is the point. the Sherman law. The Senate adopts it. They do it upon the It is the one point I make, ·and I say that it is a serious ques­ suggestion of the Senator. tion and one that, no matter how the passions of the moment l\1r. REED. Certainly. The Senator stands up and makes a may be inflamed, should be considered entirely with reference charge, and then he asks the Senate-- to the effect that it may have in the future, as well, of course, l\1r. BRANDEGEE. Or any other Senator may. as the merits of the oarticular matter. Mr. LODGE and Mr. MOSES addressed the Chair. I yield to the Senator from New Hampshire. Mr. REED. Please wait until I get through. He asks the 1\.fr. MOSES. I wish to call the Senator's attention to a Senate to investigate the charge which he makes. That is one still more recent precedent, which seems to me almost exactly case. The other is where a Senator stands up and makes a on all fours with the case the Senator is discussing. speech, and in the speech he makes some statement that is

tion to prove whether or ·not the Senator from Georgia told the conduct of the Army, he has the right to do so. The point the truth. It is an investigation to find the facts, whether the that I am making is that this is, in ' ··stance and effect, in impression that he labors under is a truth or not; not whether form and in manner, an investigation oi the truth of a speech the Senator from Georgia is a willful prevaricator, but he may made on the floor of the Senate, and that if we adopt such a be mistaken. This investigation is to find out what these Army course in this instance we may adopt it as to every Senator officers did over there. The Senator from Georgia is amply who makes a statement on this floor. able to take care of himself, I have no doubt. This matter is not beyond the control of the Senate. I think Mr. WATSON of Georgia and Mr. McCUMBER addressed the it very unfortunate that this controversy has arisen at all. A Chair. good many things happened during the World War that I do 1\.fr. REED. I merely wish I might be permitted to finish not believe it would do any good to the Army or to the country what I have to say. to rake over. In ·sayj.ng that I am myself not making charges The PRESIDENT pro tempore. The Senator from Missouri concerning anything; but in the conduct of a great conflict has the floor. such as we went through, if the veil were to be lifted · as to Mr. HEFLIN. Will the Senator yield to me for a moment? everything that happened, I am afraid in many instances repu­ Mr. REED. I can not decline to yield to .a Senator, but I tations would be sacrificed and a tarnish put upon those who wisb I might be permitted to finish what I have to say. I have conducted our military affairs. That is, perhaps, inseparable been kept on my feet here for a long time. from the conduct of any great war; and I do not want to be 1\Ir. HEFLIN. Mr. President, the Senator from Massachu­ ·misconstrued in what I am saying. I know, for instance, that setts cited an instanc~ where Senators were summoned to testify certain things transpired that it is just as well not to have as to whether or not they had speculated in sugar stock. I mentioned, and I have not mentioned them. They have no want to remind the Senator that there is now a case pending relation to cruelty, they have no relation to the charges which before the Senate where a United States Senator is charged have now been made, but I know of telegrams that passed with having purchased his seat in this body. A Senate com­ between headquarters and other places that I do not think mittee has investigated the charge, but has never required that ought to be blazoned to the world to-day. ·When one of these man to appear before the committee to testify as to whether investigations is started it is very likely to bring out a lot of or not he had obtained his seat by such means. matter that will do the Army no good. The minority members of that committee sought to have the You had better think about it a little before you enter upon accused Senator come before the committee and testify, but the it, and think about it especially in the light I have sugge ted. majority members refused to have him do so. Are we going to establish the precedent that if the Senator Mr. REED. 1\lr. President, I do not want to get into that from Indiana [Mr. W A'.rsoN], whom I very much esteem, were question. to make a charge, for instance, in a speech here that the Demo­ .l\lr. McCUMBER. Will the Senator yield to me for just one cratic Party had done something in some State, immediately, if little suggestion? the Democrats were in the majority, they would pass a resolu­ J\.fr. REED. I shall never get through. tion to investigate and to call the Senator before that committee l\1r. McCUMBER. I know we are both trying to hurry along, and require him to make good his charges? and I shall only detain the Senator from Missouri for a mo­ I have heard the Senator f"I·om Iowa [Mr. KENYON] make ment. charges in regard to trusts and combinations and monopolies Mr. REED. Very well. which he.believed to be true, and which probably were true but Mr. McCUMBER. I agree with the Senator from Missouri it would have taken six months or a year and the whole Depart­ that the motion would have been more proper had it simply ment of Justice to have brought forward the evidence. So if been a motion to investigate the facts charged and let the we are going to establish this as a precedent, let us all under­ matter end there without specifying what witnesses should stand hereafter that when we make a charge, instead of makin(J' be called before the committee and leave the committee to call it on our own responsibility and our responsibility to our ow~ the witnesses. Of course in this instance probably the first States and our own communities and our own people we are witness who would be summoned would be the- senator who making it with the understanding that we have got to ao to makes the charge. However, is not that something which has trial right away on the truth of the statement we have made. already passed? The motion was agreed to without the amend­ I simply offer the suggestion, and I would have made it in a ment as suggested. After all it is but an investigation of the few minutes but for the interruptions which have ensued. I facts in the case. Whatever way the committee finds the ques­ also Qffer the suggestion, and I do so in all sincerity, whether tion will be whether or not the officers have committed the it is wise now to start an _investigation of this kind. I would offense charged. We can not now change the motion which has not want a subprena served on me to bring some telegrams that been made. The resolution now offered simply confers au­ I have in my possession. I think it is better the country knows thority to call witnesses, to pay them, and to pay the stenog­ nothing about some matters, and all Senators, I think will be raphers' fees. of the same opinion if they will turn this matter over' in their Mr. REED. Mr. President, I understand that is the situa­ minds. I thank the Senate. · tion. I also understand that the Senate has full authority The PRESIDENT pro tempore. The bill is before the Senate to discharge the committee and to end this matter, and before as in Committee of the Whole and open to amendment. we get through with it I think it ·wm be determined that that Mr. HITCHCOCK. Mr. President, a parliamentary inquiry. is the wise course to pursue. Mr. WATSON of Georgia. I rise to a question of personal There has been something said about these grave charges privilege. · against the Army. The PRESIDENT pro tempore. The Senator from Georgia Mr. LENROOT. . Will the Senator yield there? will state his question of personal privilege. Mr. REED. Yes; I will yield. I can not refuse to yield, but Mr. WATSON of Georgia. Mr. President, the senior Senator I have not been permitted to speak one minute consecutively. from l\1assachusetts-- Mr. LENROOT. I know that, but I should like to inquir:e if Mr. HITCHCOCK. If the Senator from Georgia will permif it is the Senator's view and his opinion that a charge of this me to ask a parliamentary question, I should like to know kind when made by a Senator upon his own responsibility whether the resolution is open to amendment. should not be investigated by the Senate? The PRESIDENT pro tempore. The Senator from Georgia Mr. REED. It is absolutely_ my opinion that if a Senator bas risen to a question of personal privilege and has been makes such a charge upon the floor he makes it upon his own recognized. responsibility ; that the Senate has no business investigating Mr. WATSON of Georgia. Mr. President, the senior Senat~ that Senator for making it unless somebody is prepared to make from Ma sachus~tts [Mr. LonGE], without intending to do so, I a charge against the Senator and put him on his trial. am sure, put me in the same category as those who are accused Mr. BRANDEGEE. Does the Senator think that Army offi­ of taking bribes here on the floor of the Senate to influence their cers, without being named, the charge simply being made against votes. That is the kind of Senators that have been investigated "Army officers," should be subjected to this charge without any in this body. The Senator from New Hampshire [:Mr. MosEs] way being provided of determining whether it is well founded did not mend the matter when he made mention of the lobby or not? operating in behalf of the dyestuff industry. In that case the Mr. REED. If the Senator will permit me to proceed for a essence of the charge, Mr. President, was that those lobbyists moment-- were corrupting Senators on the floor, nnd were, therefore, Mr. BRANDEGEE. I will not interrupt the Senator again. adopting criminal methods. If they were in fact corrupting Mr. !lEED. I will answer the interrogatory. I am- not Senators here and gaining votes by money, the Senators so in­ objecting to interruptions, except that I never can get a state­ fluenced deserved expulsion, and I would have been one of the ment finished. If any Member of the Senate, on his own mo­ Senators who upon proper testimony would have voted to expel tion, saw fit at any tim to introduce a resolution to investigate them. But, Mr. President, every one of the charges I made 1921. CONGRESSIONAL RECORD-SENATE. 7177 was made on the floor of the Senate in December, 1918, a month through the secondary process-the tax shall be reduced to 5 or so after the armistice. They were made by Senator Cham­ cents, so that it will be 5 cents per gallon if sold to the bottler, berlain, and they were based partly upon the official reports of where it has to be made and resold to the dealer and resold Surg. Gen. Gorgas. They were based partly upon letters of again by the dealer, and in the other instance the tax of 7! Presillent Wilson. They were based upon reports that came to cents per gallon will be retained. him from the War Department and trom France that a court­ Mr. SIMMONS. 1\fr. President, I am very glad that the Sen­ martial was no court-martial at all, but that the officer directed ator- in charge of the bill has proposed this amendment, and I the court-martial what to do, and the court-martial had a man hope it may be adopted. I have had a great many letters about shot if the officer wanted him shot, and in this case they had this matter. Tlle bottlers complain very greatly about the tax him hanged if the officer wanted him hanged. of 7! cents. I think the reduction is not more than should be Why did they build the gallows if not to use it? Why hide made ; in fact, I think it is hardly as much as should be made. it away if they did not have sQmething to hide? Mr. KING. Mr. President, I should like to inquire of the Mr. President, I hope Senators will allow me the justice to Senator whether that reaches tile case of Coca-Cola and what say that during the few short hours that have passed since might be denominated, perhaps improperly, synthetic or chemi­ this charge was flung at me and this demand made on me by cally prepared compounds used for beverage purposes? the Senator from New York [Mr. WADS WORTH] I have received Mr. McCUMBER. No; it does not. It simply covers the from Tampa, Fla., from Philadelphia, and from New York con­ ordinary sirups used in the soda fountains and used for flavor­ firmation of the very charges which he denied, and which Sena­ ing, and so forth, by the pop manufacturers and the manufac­ tor Chamberlain made; and I am told that photographs of turers of different bottled goods that are sold to the consumer similar gallows, erected elsewhere, are in the mails now, on for a nickel a bottle. their way to me here in Washington. They probably will be in Mr. KING. Mr. President, I have an amendment which I my possession to-morrow. Necessarily, it will take me a few have not with me-I have sent for it-and I am not sure whether days, possibly a week or two, to get in the signed statements it relates to this section or not. If the Senator's amendment and affidavits of these·ex-service men, and some who are still shall be adopted, I will ask the Senator to consent to reopening in the service. I will deal fairly and squarely with the 'Senate. the section for the purpose of permitting me to present an I will not shirk a single issue. I will not deal in anything that amendment to it. is unmanly or unfair; but my honor is at stake, and I hold Mr. McCUMBER. It can be presented anyway, even without that higher than I bold my life. the reopening. As I said before, this charge was brought against me here Mr. MYERS. Mr. President, I desire to ask the Senator openly on the floor of the Senate, in the hearing of the whole from North Dakota [Mr. McCu~fBER], who is at present in country, and I am going to fight it out with the Senator from charge of the bill on the floor of the Senate for the Finance New York right here on the floor of the Senate, in the hearing Committee, for some information with regard to the amend­ of the whole country. 1 ment he has just offered. ~Ir. NEW, Mr. HEFLIN, and Mr. CALDER addressed the On pages 177 and 178 of the bill I observe the provisions about Chair. the sale of bottled soda water and the sale of soda water.from The PRESIDENT pro tempore. In response to the inquiry fountains, as the bill came from the House, and I observe that of the Senator from Nebraska [Mr. HITcHcocK], the Chair de­ the Senate committee recommended some small changes on page sires to say that the resolution is not open to amendment at this 177-for instance, in line 8, changing the tax there provided time. It bas been referred to the Committee to Audit and Con­ from 4 cents to 2 cents per gallon. I understand that that trol the Contingent Expenses of the Senate. When it is re­ amendment bas been adopted, as well as the amendment recom­ turned to the Senate the Senate can make any disposition of it mended by the Senate committee on page 178. that it sees fit, either by way of amendment, or adoption, or Mr. McCUMBER. Yes. r~jection, or reference to any committee to which it may de­ Mr. MYERS. What is it that the Senator proposes to do sire to refer it. now? I should like to get a clear understanding of his proposal. T.aX REVIS tON. Mr. McCUMBER. On the next page, page 178, subdivision The Senate, as in Committee of the Whole, resumed the con­ (e) reads: sideration of the bill (H. R. 8245) to reduce and equalize tax­ Upon all finished or fountain sirups of the kinds used in manu­ ation, to amend and simplify the revenue act of 1918, and for facturing, compounding, or mixing drinks commonly known as soft drinks, sold by the manufacturer. producer, or importer, a tax of 7~ other purposes. cents per gallon; except that where any person manufacturing car­ Mr. l\IcCID1BER. Mr. President-- bonated beverages or conducting a soda fountain, ice cream parlor, or The PRESIDENT pro tempore. The bill is befo£e the Senate other similar place of business manufactures any sirups of the kinds described in this subdivision, there shall be levied, assessed, collected, as in Committee of the Whole, and open to amendment. and paid on each gallon manufactured and used in the preparation of Mr. McCUMBER. Mr. President, I have two amendments soft drinks a tax of n cents per gallon. that I desire to offer. l\Ir. HEFLIN. ·Mr. President-- Then I insert here : Mr. CALDER. Will the Senator yield to me to report back Except that upon any finished sirups intended to be used in the manufacture of carbonated beverages sold by the manufactul'er or the resolution just introduced by the Senator from Connecticut? producer in bottles or other closed containers there shall be levied, Mr. ASHURST. I call for the regular order. assessPd, collected, and paid on each gallon of sirup manufactured and Mr. McCUMBER. Mr. President, I have just yielded for so used a tax of 5 cents per gallon. something that it was said would require no debate, and it has In other words, it is intended to cover those cases where taken two hours. there are one or two intermediate sales between the manufac­ The PRESIDENT pro tempore. The Senator from North ture of the sirup and its sale for consumption, rather than a Dakota bas the floor. single sale where it is sold for consumption at the soda foun­ 1\Ir. McCUMBER. Mr. President, I have a couple of small tains. amendments which I desire to offer. One is on page 178, line Mr. MYERS. As I understood, those portions of.tbe bill em­ 18. After the semicolon insert : bodied on pages 177, 178, and 179, as they came to the Senate Except that upon any finished sirups intended to be used in the from the committee, the intention was to equalize the tax on manufacture of carbonated beverages sold by the manufacturer or pro­ ducer in bottles or other closed containers there shall be levied, as­ the manufacturers of bottled soda water and the tax on dealers sessed, collected, and paid on each gallon of sirup manufactured and in soda water from soda fountains. That was the intention, so used a tax of 5 cents per gallon. was it not, to put them about on an equal footing? Under the amendment as adopted by the Senate there is a Mr. McCUMBER. There was an attempt to place all on as charge of 7i cents per gallon upon fountain sirups of all kinds. nearly an equal footing as the committee at that time thought These fountain siruns are used in two ways. One way is to they could place them. serve them from the soda fountains in our drug stores. The Mr. MYERS. The Senate has adopted the committee amend­ sirup passes directly from the manufacturer to the soda foun­ ments in these particulars. I ani right in that statement, am I tain, where it is sold in drinks, mixed with carbonated waters. not? The other way is to sell the sirup to the bottlers who make the 1\fr. McCUMBER. In those particulars; yes. pink and yellow pop, and so forth. They make their decoc­ Mr. MYERS. But the Senator is submitting a furtller tion, put it in bottles, then the bottles are sold to the dealer, amendment. and the dealer sells it to the consumer. Mr. McCUMBER. A further amendment; yes. We regard this tax of 7! cents upon the bottlers at least as 1\Ir. MYERS. Does the Senator think that would fm'tber being extremely heavy; so I have provided that where the sirup tend to equalize the manufacturers and the fountain dealers in is sold for this bottling purpose--and, as the Senators know, in soda water, and put them more nearly on an equal footing? all cases these bottles are sold for 5 cents apiece, whereas the Mr. l\IcCUl\IBER. I think it would. I think it is a matter soda fountain receives from 5 to 10 cents without having to go of justice to them. 7178 CONGRESS! ON AL REGORD-SEN ATE. NoVE~rnER 2,

1\Ir. MYERS. The Senator thinks it would do justice to all and so forth. That carbonic acid gas is sold in the market at alike? from 8 to 10 cents per pound, and this places a duty upon it, Mr. McCUMBER. I think so. The Senator knows that these therefore, of from 50 to 60 per cent of its value. I think that bottled goods, like the pops and the different kinds of soft drinks is rather heavy, and in order to bring it into conference, in sold in bottles, are sold, as a rule, for 5 cents a bottle, and are order that we may have a reconsideration of it in conference, manufactured to sell for that price. The manufacturers of and make any further adjustment that may be necessary, I am these carbonated articles which are sold as I have suggested asking to reduce it to 3 cents, cutting off 2 cents per pound. must first purchase their sirups ; then they are converted into l\1r. KING. Mr. President, if I may have the attention of the the goods which are bottled or put in containers; then they Senator from North Dakota, I have had printed several amend­ are sold to the dealer, and the dealer sells to the consumer ; ments relating to this subject, and if the Senator from North where at the soda fountains they are purchased directly from Dakota will gi"re me his attention I should be very glad to have the manufacturer of the sirup, and do not have to pass through his views regarding them'. I will say very frankly that I am these hands, and the soda-fountain proprietor generally receives not sufficiently advised as to the effect of these amendments as 10 cents instead of 5 cents; but in either event he has had con­ to determine whether they should be adopted. Much has been siderable of an advantage over the bottler. said to· me in favor of them, and there have been some objec­ It may be possible that in conference we may have to decide tions. to balance or equalize something else, but I think this will The amendments which I offer are for the purpose of correct­ make the tax operate more fairly than under the committee ing what I conceive to be a discrimination, in that the. bill per­ amendment. mits Coca-Cola and chemically prepared sirups and essences to Mr. MYERS. The Senator's idea, then, is to equalize the have the same advantages, to be subject to the same taxes, as taxation on these two classes of people, is it? That is the object unfermented juices and cereal beverages, and the amendments of his amendment? which I offer are for the purpose of imposing upon Coca-Cola Mr. McCUMBER. Yes; and to make it possible for these and upon chemically prepared essences and sirups a higher tax. bottlers to continue in business; and, of course, in order to Not being a member of the Finance Committee I have not had continue in business they must be able to produce a drink that the advantage of the information conveyed to the committee. they can sell for 5 cents a bottle, and that will not cost them The PRESIDENT pro tempore. Will the Senator send .his so much that they can not compete with the drug stores. proposed amendment to the desk, so that it may be read by the 1\fr. MYERS. There has been a good deal of apprehension Secretary and a record kept? amongst the manufacturers of bottled soda water in the country 1\fr. KING. I offer the following amendment, and I shall be lest Congress put upon them such a burden that they could not glad to have the views of the Senator from North Dakota compete with those who retail soda water out of fountains. upon it. I am interested in seeing the manufacturers of bottled soft The PRESIDENT pro tempore. The Secretary will state the drinks have an equal show with the retailers who sell out of amendment. . fountains. There should be no discrimination against them. The ASSISTANT SECRETARY. On page 177, line 14, after the Many manufacturers of bottled soft drinks have thousands of word " sugar," insert: " a tax of 2 cents per gallon," and strike dollars•invested in their business and it would be very unfair out the words " and upon " and insert the word " Upon." to discriminate against them. In some cases it would be con­ Page 177, line 20, strike out the words "2 cents " and in place fiscation of their property. I want to see them have an equal thereof insert " 6 cents." show and a fair deal. That is all I ask. That is all they ask. Page 178, line 11, after the word " gallon," insert the follow­ I have followed this closely, and I believe the committee wants ing: " but if manufactured, compounded, or mixed by the use to give the manufacturers a fair deal. There should be no of concentrate, essence, extract, or imitation fruit juice, the tax discrimination between the manufacturer and the dealer who shall be 22i cents per gallon." sells from the fountain. The Senator's idea is to avoid anything Page 178, line 18, after the word "gallon," insert "or 22! of that kind, is it? cents per gallon, respectively." Mr. McCUMBER. It is. 1\Ir. KING. Mr. President, -the purpose of the amendment is Mr. MYERS. I am glad to know it. I accept his assurance to differentiate between unfermented fruit juices and cereal that his.amendment would carry out that idea. That being the beverages, aBd Coca-Cola and chemically prepared sirups and case, I am for it. essences. It occurred to me, when the matter was first up for Mr. McCUl\fBER. That is one of the purposes of the amend- consideration, particularly in view of the enormous profits on ment. Coca-Cola and some of these chemically prepared sirups and Mr. MYERS. I thank the Senator for the information. essences, that there ought to be a distinction in the taxes im­ Mr. BROUSSARD. May I ask the Senator a question? posed, that the unfermented juices and the cereal beverages, con­ Mr. McCUMBER. Certainly. cededly harmless and perhaps beneficial, ought not to pay the Mr. BROUSSARD. Would the amendment have the effect of same tax as Coca -Cola and chemically prepared beverages. doubling the tax on the sirup? I made some inquiry of Mr. McCoy, and he suggested, I will Mr. 1\fcCUJ\fBER. No; it reduces it. say very frankly, that these distinctions, if any distinctions at Mr. BROUSSARD. There is no duplication of taxes, then? all are made, would perhaps be fair. So I have offered these Mr. McCUl\ffiER. No; it simply reduces it. Now it is all n amendments, the effect of which would be to provide that upon cents per gallon. This provides that if it is used for the pur­ all imitations of any such fruit juices and upon all carbonated pose of making these bottled goods the tax shall be only 5 cents beverages, commonly known as soft drinks, which are imitations, instead of 7!. except those described in subdivision (a), manufactured, com­ The PRESIDENT pro tempore. The question is on agreeing pounded, or mixed by the use of concentrate, essence, or ex­ to the amendment. tract, instead of fountain sirup sold by the manufacturer, pro­ The amendment was agreed to. ducer, or importer, a tax of 6 cents per gallon. Mr. 1\IcCUl\IBER. l\1r. President, I have only one more The first amendment of 2 cents a gallon merely carries up to amendment, which is very short. It is found on pages 178 and line 14 the 2 cents per gallon found in line 20, then applies 6 179. cents a gallon to these imitations, which would reach Coca-Cola The PRESIDENT pro tempore. Will the Senator from North and chemically prepared beverages. Dakota send the amendment to the desk, so that it can be Mr. McCUMBER. Mr. President, I can not see why there read? should be any difference made in the matter of taxes between l\fr. KING. May I interrupt the Senator for a moment? Coca-Cola and some of these other beverages. When it comes Mr. 1\IcC,Ul\fBER. Certainly. to the cereal beverages, that raises an entirely different question. l\Ir. KING. While we are discussing pages 177 and 178, The committee investigated the matter and found that the ex­ dealing with beverages, I would like to suggest an amendment pense of producing the cereal beverages was enormously greater I have dealing with the same paragraph. than the expense of producing these other beverages, and there­ Mr., l\fcCUl\fBER. I have one also, and I think I can dis­ fore they provided a lower tax upon those beverages which cost pose of this in just a few minutes. the most to put upon the market, and which, of course, were sold Mr. KING. I was wondering if, while we were considering in competition. these sections, I could offer my amendment. Let us take, for instance, what we call near beer. I am in­ 1\Ii'. McCUMBER. This is an amendment to the same sec­ formed that it is more expensive to make that than actual beer, tion. My amendment is to strike out the figure " 5," on line 2, because it is made in the same way; then, in addition to that, it page 179, and insert in lieu thereof the figure " 3." The bill has to go through a process of having the alcohol extracted from as it came from the House placed a duty of 5 cents per pound it, so that it will comply with the prohibition law. But it is upon carbonic acid gas sold by the manufacturer, producer, sold, and sold in competition with ginger ale, sarsaparilla, and C!' importer to a manufacturer of any carbonated beverages, pops of many colors and flavors, which cost nothing like as 1921. CONGRESSIONAL RECORD-SENATE. 7179

much to manufacture. That was the reason the Senate com­ that on account of the inclusion of the word "preparation " mittee tried to get this as nearly correct as it could. in line 15, and this is the wording of the existing law, any 1.\fr. KING. I think the Senator is under a misapprehension medicine which contains as one of its component parts opium as to the effect of my amendment. It is not attacking in any or coca leaves or any compound or salt or derivative thereof way the cereal beverages, including near beer, and I am not is taxed at the rate of 1 cent per ounce for the entire prepa­ seeking to change the figures recommended by the committee, ration. and which have been agreed upon. I am attacking only those Mr. KING. Does that include paregoric? provisions of the bill which relate to Coca-Cola and chemically Mr. WADSWORTH. I can not say what happens in the prepared essences, not cereal beverages. case of paregoric. I do not know. · Mr. McCUMBER. That is the reason I was asking the Sena­ The result is that the pure opium or coca leaves, if manu­ tor why he differentiated between Coca-Cola and sarsaparilla, factured and sold in their original state, pay 16 cents a pound or any of the other beverages which are sold from the same or 1 cent an ounce. Of course in that form they are most fountain as Coca-Cola. Coca-Cola has nothing poisonous in it. desired by addicts, but when they are contained in a legiti­ The foundation is the extract from tea dust. I suppose that mate medicine prescribed by a physician the price of that that is supposed to have some medicinal qualities, at least it is medicine is immensely enhanced, because, according to the advertised as having them. I do not know whether it does ruling of the Treasury Department, so my information runs, have them or not, but I have heard no testimony that would the entire medicine is taxed at the rate of 1 cent an ounce justify the committee in making any difference between the tax because H contains a fractional part of one of these drugs. on a glass of Coca-Cola and the tax on a glass of sarsaparilla. 1\fr. BROUSSARD. Mr. President-- l\1r. KING. I regret that the junior Senator from Georgia The PRESIDENT pro tempore. Does the Senator from New • is not here. The Senator from North Dakota will recall the York yield to the Senator from Louisiana? statements which he made relative to the deleterious effects Mr. WADSWORTH. I yield. flowing from the habitual use of Coca-Cola. I do know that a Mr. BROUSSARD. I think that the Senator's argument is number of years ago coca leaves were employed in the prepara­ similar to that which was made against a preparation con­ tion of Coca-Cola, and that there was a narcotic in the leaf, taining vinous liquors. and that some one representing the Government placed Coca­ Mr. WADSWORTH. It is exactly the same situation. Cola, at least temporarily, upon the black list; but later, I am Mr. BROUSSARD. I think the Senator is correct so far as advised, the narcotic, whatever it was, was eliminated; but that is concerned. they still use some form of coca leaves, as well as tea leaves, Mr. WADSWORTH. I do not assert my observation here to in the preparation of Coca -Cola. be conclusive, and I know that this is a part of the statute Mr. McKELLAR. I wish to call the Senator's attention to which we should very carefully consider before we amend it; the fact that this matter has gone through all of the courts, but as part of my observation on this point I merely wish to and that the Supreme Court of the United States has decided lay before the Senate these facts which have been presented that question against the contention suggested by the Senator to me by a person particularly expert in the administering of from Utah. It has been judicially determined, in so far as Coca­ drugs and medicines. Cola is concerned. Under the existing state of affairs there is a tax of 16 cents Mr. KING. If the Senator will pardon me, I do not think on 1 pound of crystals, the form in which the drug is com­ the Supreme Court has decided against my contention. I am monly sold by the manufacturer and wholesale dealer. That merely stating that years ago it was found that there was co­ is thoroughly understood. Assuming that the crystal was the caine or some other very deleterious drug in Coca-Cola. element which goes to make up morphine sulphate, on 1 pound Later the Coca-Cola Co., in order to meet the requirements of of crystals when prepared as a sirup or elixir or as an added the Bureau of Chemistry, which has to do with the enforcement ingredient of a medicinal :fluid, each teaspoonful of which of the pure food and drugs law, ·made modifications in the contains one average dose as customarily prescribed by phy­ formula and eliminated the drug which had been found to be sicians for the sick, there is a tax of $70. The entire medicine deleterious; but it is known that the present formula contains is faxed, although there is but a tiny ingredient of the drug, caffeine and tea leaves, and coca leaves are still employed in which in its pure form is taxed 16 cents a pound. the manufacture of Coca-Cola. The Senator from Georgia On codine sulphate I am informed the tax upon the crystals stated upon the floor of the Senate that the use of Coca-Cola in will be 16 cents and for the medicine which contains it in small its present form was deleterious. part $17.50. Mr. McKELLAR. Mr. President, all I can say is that not On morphine the tax would be 16 cents per pound for the only was the charge made by the Government that there were original crystals and $155 on the medicine containing the crys­ in Coca-Cola narcotics of some sort or drugs of some sort that tals. were deleterious to the health of the people who drank it, but The spread in cost due to .the tax, of course, is immense, and they brought a suit, and a large amount of evidence was taken, is has been contended to me that the tax as at present inter­ and the rna tter as thoroughly examined into as it is possible to preted by the Treasury Department bears with an exceedingly examine into such a matter by the courts of the country, and, heavy hand upon the sick man to whom is prescribed a medi­ so far as I know, after a fair and impartial trial, it went to cine which contains a tiny portion of one of these drugs, and, of the Supreme Court of the United States finally, and it was de­ course, many of the most valuable and entirely legitimate medi­ termined by that court that the Government's contentions were cines do contain them. unfounded. That is all I know about it. Mr. KING. Mr. President, may I inquire of the Senator 1\fr. KING. I believe that Coca-Cola ought to be differen­ whether this tax upon the concentrated form, upon coca leaves tiated from harmless cereal beverages and unfermented juices. or the primary product before it is manufactured into these I would impose a heavier tax upon it and upon other essences of various forms in which it is used, is sufficiently heavy? a kindred character than I would upon cereal beverages or Mr. WADSWORTH. I do not know. I have never studied unfermented juices. that question at all. Mr. KING. It seems to me that the Senator's argument must The PRESIDENT pro tempore. The question is upon the lead to an emendation. The only question I had in mind was amendment offered by the junior Senator from Utah [Mr. whether the primary product was sufficiently taxed. KING]. Mr. WADSWORTH. I merely wish to lay this suggestion be­ The amendment was rejected. fore the Senate. I was going to suggest an amendment which, Mr. 'VADSWORTH. 1\fr. President, may I have the atten­ on line 15, page 225, would strike out the words "or prepara­ tion of the Senators in charge of the bill to a matter which has tions " and place the word " or " immediately after the · word been brought to my attention, and which is found on page 225, "salt" so that it would read" any compound, salt or derivitative beginning at line 13? It has to do with the tax on narcotic'S. thereof " ; and then lower down, at the end of line 18, after the It seems under the existing law, which I understand is not word "ounce," insert the words "of opium, coca leaves, or any to be changed, or if a change be made the change does not affect salt or derivative thereof"; and on line 19, after the word the matter which I wish to touch upon, that a tax of 1 cent "ounce," insert the words "of the aforesaid drugs." an ounce is levied upon opium, coca leaves, any compound, salt, It would then read as follows : in derivative, or preparation thereof, produced or imported into That there shall be levied, assessed, collected, and paid upon opium,­ the United States. The existence of that tax is, of course well coca leaves, any compound, salt or derivative thereof, produced in or kn{)wn, and to a. considerable degree it is meant to be r~gula­ imported into the United States and sold, or removed for consumption or sale, an internal-revenue tax at the rate of 1 cent per ounce of tory, but, of course, being a revenue measure, it is contained in opium, coca leaves, or any salt or derivative thereof, and any fraction the revenue law. of an ounce of t he aforesaid drug in a package shall be taxed as an This state of affairs has been brought to my attention. The ounce- Treasu1-y Department, according to my information, has ruled And so forth. 7180 CONGRESSIONAL RECORD-SENATE. NoVEMBER 2,

Mr. KING. May I inquire of the Senator whether he is right their being compelled to pay the tax upon income rather than in his construction? Is the word " derivative" the antecedent upon their.premiums. of the word " thereof "? It seems to me the antecedent of Mr. WADSWORTH. I am a devotee of the protective tariff, "thereof" is" preparation." I am not sure whether there may but I did not expect to find an element of the protective tariff be a derivative thereof. in a revenue bill. However, I may be wrong. This occurs to Mr. WADSWORTH. Oh, yes; I imagine chemically there me to be a method which is devised to compel American ship­ can be a derivative of any one of these salts. owners and cargo owners to insure with American marine in­ Mr. KING . . It seems to me the word" thereof" is attached to surance companies. the word "preparation." Mr. SMOOT. There is a little of that element in it, I will Mr. NELSON. Mr. President-- say to the Senator, but at least it prevents the discrimination 1\Ir. WADS WORTH. I yield to the Senator from Minnesota. that is in the existing law, for as the Jaw stands to-day the l\Ir. NELSON. I wish to give the Senator a little informa- foreign company has an advantage over the domestic company. tion as to what this Coca-Cola really is. 'Ve had a case in the Mr. WADSWORTH. Mr. President, I do not know that I Supreme Court of the United States in 1915 where the decision can command the terms to express the operations of marine of Ju tice Hughes stated rather in detail what Coca-Cola really insurance or any other kind of insurance, but is it not a fact is, as follows : that a marine insurance company can place a policy upon a In the present case, the article belongs to a familiar group; it is a vessel or a cargo to a very large amount, and then, as it were, sirup. It was originally called " Coca-Cola sirup ard extract." It is produced by melting sugar, the analysis showing that 52.64 pet• cent of farm out some of it .to another company or reinsure it? the product is sugar and 42.63 per cent is water. Into the sirup thus Mr. SMOOT. I will say to the Senator that that is the usual formed by boiling the sugar there are introduced coloring, flavoring, a11d practice. other ingredients in ord(>r to give the sirup a distinctive character. The caffeine, as hns been said. is introduced in the second or third "melting." Mr. WADSWORTH. Yes. The matter bas been called to 'Ve see no escape from the conclusion that it is. an "added" ingredient my attention on that line. within the meaning of the statute. Mr. SMOOT. That same principle is followed by all ·fire It is principally sugar and water, with a little fiavor of coca insurance companies, and frequently by life insurance com­ leaves. panies in the United States, and, indeed, all over the world; l\Ir. Kll~G. And caffeine. in other words, a fire insurance company will take a risk upon Mr. NELSON. Yes; and a little caffeine. I believe lately the buildings in a certain district of a certain city, but that fire they have changed the name. This decision was adverse to the insurance company is certainly not going to carry all of that company, and the case was sent back for a new triaL In other risk. It divides the risk so that in case a great confiagration words, Justice Hughes, who wrote the opinion, held that there ever occurs in any one district, its liabilities will be limited. was evidence to go to a jury as to whether it was not adulter­ All of the insurance companies are pursuing the same policy, ated; whether they had not made some unwholesome addition thus virtually spreading the insurance over all sections of to it. " 'hat the result of the second trial has been I do not know, the country so that if there is a great fire in any section all but this is what it is-sugar and water and a little coca and of the companies in 'the United States bear their proportion of some caffeine. the loss. :M:r. WADSWORTH. Mr. President, I believe the Senator 1\.:l.r. WADSWORTH. I am not criticizing that policy, of from Pennsylvania has a suggestion to make. course. Mr. PENROSE. Mr. President, this is rather a complicated Mr. SMOOT. It is the same with the marine insurance matter. I have no doubt there is much weight in the thought companies. which prompts the Senator from New York. In the opinion of Mr. 'VADSWORTH. This state of affairs has been sub­ the committee which . carefully considered the subject it was mitted to me, and I thought I would ask the Senators on the thought that this provision was regulatory and for the purpose Finance Committee what they thought about it: of giving jurisdiction to the Department of Internal Revenue As the bill does not include reinsurance premiums, you will readily over these drugs. I suggest that the Senator from New York see it would permit of American underwriters writing insurance on withhold his amendment for a shQrt time until I can submit vessels for larger a.mounts than they would ordinarily retain, and at higher rates, owing to the foreign discrimination, and reinsuring the some information for his more careful scrutiny than is possible excess over what they would retain with foreign underwriters, as they in open debate. could do -so without paying the tax. Mr. WADSWORTH. I am willing to withdraw it for a short time. Ma:r I offer a comment upon another section of the bill l\1r. SMOOT. I tWnk there is one mistake in the statement while I am on my feet? which the Senator from New York bas just read, though the The PRESIDENT pro tempore. Without objection, the amend­ remainder of it is, perhaps, correct. I refer to the statement ment offered by the Senator from New York is withdrawn. as to higher rates being charged. I do not see how the pro­ Mr. WADSWORTH. I wish to ask the chairman of the com­ posed legislation could have that effect. mittee concerning an amendment which appears near the bottom Mr. W ADS,VORTH. It will enable them to write at higher of page 247 and which has to do with the tax to be imposed rates. The 'American companies do write at higher rates; and upon marine insurance. that is the purpose of this tax. I can not boast of knowing all about the marine-insurance Mr. SMOOT. But the ..American companies pay a higher problem, but as I understand the present law imposes a tax tax; they are assessed at a higher rate; and they, thereforeJ of 1 per cent upon marine insurance placed with American ought to get a higher rate; at least enough to put them on a companies and a tax of 3 per cent upon marine insurance placed footing of equality with the foreign companies. with foreign companies. I further understand that the bill Mr. WADS WORTH. But it is not proposed to tax reinsur­ eliminates the tax of 1 per cent to be imposed upon insurance ance? placed with domestic companies and leaves a tax of 3 per cent 1\Ir. SMOOT. No; it is not proposed to tax reinsurance. upon marine insurance placed with foreign companies. There l\Ir. WADS WORTH. That, I think, is what causes the are certain aspects of a subsidy about that situation. I trouble. was wondering upon what theory we were proceeding in a Mr. SMOOT. If we taxed reinsurance, we might as well re- tax bill to discriminate in the matter of marine-insurance poli­ tain the existing law. cies in such a way as to compel the owners of American vessels l\1r. WADSWORTH. It is a very grave question whether or and of American cargoes to pay a higher rate for their marine not we want to increase the cost of operating the American insurance, which is certainly the effect of this provisio:q.. merchant marine. That is the point. Mr. SMOOT. I will say to the Senator from New York that Mr. SMOOT. I want to say to the Senator that before the all domestic companies are now taxed under this bill on their stamp tax was imposed, we never got a cent out of these com­ incomes, and the change that was made was made to equaUze panies ; they did not pay one> single, solitary penny of tax into all insurance companies as nearly as possible. The foreign. the Treasury of the United States. company does not pay any tax upon its income at all, and there Mr. NELSON. Mr. President-- would be a discrimination against the domestic companies un­ The PRESIDENT pro tempore. Does the Senator from New less we made this change. York yield to the Senator from Minnesota? Mr. WADSWORTH. Does the foreign company pay no tax 1.\Ir. NEL'SON. Will the Senator yield to me for just a of any kind in this country? moment in connection with this question? Mr. SMOOT. On its income it does not. Mr. WADS WORTH. I yield. Mr. WADSWORTH. What will be the effect of this on Mr. NELSON. Mr. President, I think the statement of the marlne insurance rates? Will it not be to raise them? Senator from Utah [Mr. SMooT] relative to the fact that for· Mr. SMOOT. I think it will raise the rates just the same eign insurance companies have an advantage over our insur· aa the rates of domestic companies are now raised because of ance companies is entirely true. We had a bearing before the. 1921. CONGRESSIONAL RECORD-SEN ATE. 718I

Committee on Commerce in reference to a bill allowing insur­ before the Senate as in Committee of the Whole and open to ance companies to incorporate under a general law here in amendment. . the District of Columbia. Many" of the representatives of Mr. WADSWORTH. Mr. President, was my amendment out American companies appeared before the committee, and· they of order? universally complained that they were at a disadvantage, so The PRESIDENT pro tempore. The amendment offered by far as taxation is cOncerned, in comparison with the foreign the Senator from New York was out of order. companies. They claimed they were subject to more taxation ·- 1\Ir. WADSWORTH. I ask unanimous consent that the \Ote and had less privileges than had the foreign companies. The by which that paragraph was adopted as a committee amendment committee endeavored to help that situation in the bill which be reconsidered. was then before them and which, I think, is now on the cal­ The PRESIDENT pro tempore. The Senator from New York endar. asks tmanimous consent that the vote by which paragraph 15 Mr. WADSWORTH. It may be that the foreign insurance on page 247 was agreed to shall be reconsidered. Is there ob­ companies in the United States do not pay taxes which are jection? The Chair hears none, and the vote is reconsidered. equal to those paid by domestic concerns; but is it a fact The Senator from New York now offers an amendment which that the total taxation imposed upon foreign companies by will be stated. their home Governments in Europe or elsewhere is less t.han Mr. WADS WORTH. I ask the Senate to disagree to the com· the taxation paid by American companies? mittee amendment. Mr. SMOOT. In some cases it may be less and in others not; The PRESIDENT pro tempore. The question is upon agree­ but the only companies that are affected by this will be com­ ing to the amendment proposed by the committee. panies which have no agent in the United States. The United Mr. SMOOT. Mr. President, perhaps I had better call the at­ States can not touch them in any way, because of the fact tention of the Senate to the history of this legislation . .that they have no agent here. If this provision is not put into In the former law there was imposed upon all American marine the law, of course, those companies will go scot-fr.ee of taxation. insurance a tax on the premium paid. The American companies Mr. WADS WORTH. In other words, the American ship­ complained bitterly that they were discriminated against, and owner is to pay this tax iii order that the American marine they were discriminated against. They asked for some protec­ insurance companies shall be able to compete against the for­ tion against this class of marine company : They have a man eign companies? in Lond.on or in Paris or in Berlin, and the insurance is ob­ Mr. SMOOT. That is one object of the amendment. tained by writing letters from the headquarters of these com­ Mr. W ADffi.VORTH. That is it. Now, the question is which panies in London, Paris, or Berlin. They do not send an agent is the more to be considered-the American merchant marine to the United States to look after the business in the United or the American marine insurance companies? We are strug­ States, with an office in the United States. ·If they did that they gling pretty hard, may I say to the Senator, to enable our ships would be taxed under the provisions of the law, but they never to carry cargoes throughout the world, and if we are going to come here, as I say, and open an office. Therefore, they can enact revenue 1a ws ·here which compel American ships to pay not be taxed here in any way. This amendment is partially to higher insurance rates, I think we had better know what we protect the American company-and I think it does-as against are doing. foreigners doing business just as I have stated. Mr. SMOOT. I am going to ask the Senate t<> reconsider the It is true that we have changed that form of taxation in this vote by which, on page 36, there was stricken out paragraph 8, bill, and instead of imposing the tax upon the premiums paid we which had reference to the tax on foreign shipping. I have a now impose the tax upon the net gains of the company. If the communication here from · the State Department transferring experts are correct in their estimates, we will collect a little more to me the protests of foreign countl'ies and indicating that if money from this form of taxation than we did when we imposed the action proposed is taken there will be retaliatory legisla­ the tax upon the premiums, and to that extent there is a little tion passed by other countries at once. advantage to the American companies; but if we strike out Mr. W A.DSWORTH. Mr. President, I am very much tempted paragraph 15 or disagree to it, as requested by the Senator from to move to strike out paragraph 1.5 on page 247. New York, I want to say now that the companies in America Mr. SMOOT. I hope the Senator will not do that. will have competition that is liable to drive them out of business, Mr. WADSWORTH. • I do not want to do anything that and if we drive them out of business we will not only lose the,tax would be destructive of any legitimate interest, but for one I that they would pay but we will interfere also with our shipping am not quite satisfied with the explanation of the' purpose 'of industry in the United States. · this paragraph. Of course, I can well understand why Ameri­ Therefore, Mr. President, I hope that the Senate will again can marine insurance companies like this propo al, which puts agree to the committee amendment. a tax of 3 per cent on all their competitors, but the American The PRESIDENT pro tempore. The question is upon agree- merchant vessel owner and cargo owner will have to pay it ing to the amendment of the committee. · The PRESIDENT pro tempore. The Chair will suggest that The amendment was agreed to. there is no question pending before the Senate. 1\Ir. TRAMMELL. Mr. President, I offer the amendment, Mr. WADSWORTH. I move to strike out the paragraph to which I send to the desk. which I have referred. The PRESIDENT pro tempore. The amendment will be Mr. TRAMMELL. I suggest the absence of a quorum. stated. The PRESIDENT pro tempore. The motion of the Senator The READD.~G CLERK. On page 49, in line 10, it is proposed to from New York is not in order. · It will first be necessary to strike out " 18 " and in lieu thereof to insert " 20." reconsider the vote by which the amendment proposed by the Mr. TRAMMELL. Mr. President, this amendment is silll'ilar committee has been adopted. Then the question will be upon to one previously offered by me_ to-day to this paragraph, ex­ agreeing to the amendment. cept that this amendment fixes the age limit upon which the Mr. TRAMMELL. I have suggested the absence of a quorum exemption may be made up to 20 years, while the previous :Mr. President. ' amendment that I offered provided that it should be up to 21 The PRESIDENT pro tempore. The Secretary will call the years. roll. The bill in this particular provides that an exemption of The principal legislative clerk called the roll, and the follow­ $400 shall be made on account of dependent children under the ing Senators answered to their names: age of 18 years. I have been unable to determine, and no one has explained, why the arbitrary age of 18 was selected. It is Ashurst Harreld McKinley Simmons not in keeping with the conditions and the reason upon which Brandegee Harris McLean Smoot Broussard Heflin McNary Spencer the exemption should be made. To say that parents should Cameron Johnson Moses Stanfield have this exemption only for children up to the time that they Capper Jones, N.Mex. Myers Stanley reach their eighteenth birthday means, of course, that it is the Caraway Jom·~. Wash. N!>lson Sterling Cummins Kendrick New Sutherland purpose and the object of Congress to assist the familY to that Curtis Kenyon Newberry Swanson extent as long as the responsibility of the care and education Dial Keyes Norbeck Townsend of the child devolves upon the parents; but we all know that, Ernst Kin.,. Oddie Trammell F ernald La Follette Overman Wadsworth as a matter of fact, the average boy and girl up to the eighteenth Fletcher Lenroot Penrose Watson. Ga. birthday-because the provision says" under 18 years of age"­ Gerry Lodge PointlPxter is no greater responsibility upon the parents than between the Gooding McCumber Reed ;~lt>n , Ind. Hale McKellar Sheppard ages of 17 and 20 or 21, especially if the children are to be given anything more than a very ordinary public-school educa­ The PRESIDENT pro tempore. Fifty-nine Senators have an­ tion. It is very seldom that any boy or girl enter8 upon col­ S\verecl to the roll call. There is a quorum 1·"-·esent. The bill is legiate work prior to the eighteenth birthday, yet under this LXI--452 :7182 CONGRESSION .AL RECORD-SENATE. N OVEJHBER 2'

prol'ision .parents are not allowed any exemption whatever for concerned, who are all very reputable business men, _and I am theil' children after the eighteenth birthday. entirely willing to accept the amendment in order to get it to - As stated in remarks previously made to-day upon this sub­ conference, anyhow, where ·we can haye an opportunity to con­ ject, it is especially in the interest of the citizen who can sider it further. scarcely afford to give his children a collegiate education that The PRESIDENT pro tempore. The question is on agreeing I offer this amendment. As far as the rich are concerned, those to the amendment offered by the Senator trom West Virginia. who are amply able to send their children to college, it makes· The amendment was agreed to. no particular difference to them one way or the other whether The PRESIDENT pro tempore. Without objection, the vote you make this exemption; but in the case of the struggling man by which the amendment in line 3, page 37, was agreed to is or woman trying to give their boys or-their girls an education reconsidered, and the question is on agreeing to the amendment. further than an ordinary public-school or high-school education, The amendinent was rejected. the tax imposed upon them when they place them in college 1\fr. CAPPER. 1\fr. President, I desire to offer the amendment after they have reached their eighteenth birthday is an impo­ which I send to the desk. sition which I think Congress should not make. The PRESIDENT pro tempore. The Secretary will state the We have afforded all kinds of relief in this bill to those who amendment. are far more able to pay their taxes than many of the parents The READING CLERK. On page 16, paragraph (b), section 204, of this country who are struggling to educate their children. I strike out lines 10 to 20, inclusive, and in lieu thereof insert the think that in fairness and in justice, in the interest of educa­ following: tion, this age limit should be raised at least to 20 years, and (b) If for any taxable year beginning after- January 1, 1920, it ap­ that the exemption should apply up to• 20 years. For that rea­ pears upon the production of evidence satisfactory to the commissioner that any taxpayer has sustained a net loss, the amount of such net loss son I have offered this amendment. shall, under regulations prescribed by the commissioner, with the The PRESIDENT pro tempore. The question is upon agree­ approval of the Secretary, be deducted from the net income of the tax­ ing to the amendment offered by the Senator from Florida. payer for the preceding taxable year ; and the taxes imposed by this act or by Title III of the revenue act of 1918 for such preceding tax­ The amendment was rejected. able year shall be redetermined accordingly. ·Any amount found to be Mr. SUTHERLAND. l\1r. President, I offer the amendment due to the taxpayer upon the basis of such redetermination shall be which I send to the desk. credited or refunded to the taxpayer in accordance with the provisions of section 252 of the revenue act of 1918. If such net loss is in The PRESIDENT pro tempore. The amendment will be excess of the net income for such preceding taxable year the amount stated. · of such excess shall, under regulations prescribed by the commissioner, The READING CLERK. On page 37, line 3, it is proposed to with the approval of the Secretary, be allowed as a deduction in com­ reconsider and disagree to the amendment already adopted, and puting the net income for the succeeding taxable yea.r : Provided, how­ ever, That the provisions of this relief shall not be accorded more than on page 37, after line 10, to insert the following new paragraph: once to the same taxpayer. (9) The receipts of shipowners' mutual protection and indemnity 1\fr. CAPPER. Mr. President. this amendment is intended associations, not organized for profit, and no part of the net earnings of which inures to the benefit of any private stockholder or member, to afford the same relief to the unfortunate business man, but such corporations shall be subject as other persons to the tax upon farmer, or stockman of 1920 that the law already gives to the their net income from interest, dividends, and rents. • taxpayer of 1919, and which is also provided for in this bill for Mr. SUTHERLAND. Mr. President, prior to 1917 it was the taxpayer of 1921. The demand comes from a great many necessary for American shipowners to go to foreign indemnity business men, farmers, and stockmen of the Middle West. They associations to obtain the class of insurance that is now fur­ have asked me to present to the Senate this appeal for relief nished by the class of companies covered by this amendment. made by the Associated Industries of Kansas, which is the Ninety per cent of American shipping is included in one asso­ leading business organization of our State. It is a very short ciation, called the American Steamship Owners' Mutual Pro­ appeal, and I shall ask the privilege of presenting it to the tection & Indemnity Association (Inc.). Seventy per cent of the Senate. It reads:· vessels of that association are cover~ by the United States Ship­ ASSOCIATED INDUSTRIES OF KANSAS, OFFICE OF SECRETARY, ping Corporation. Assessments are paid by all the companies Topeka, October "1, 1921. • whose vessels are included and by the United States Shipping DEAR Mn. : We want to call your attention to a matter of Corporation, in proportion to tonnage, to indemnify them very great interest to the business interests of the whole Middle West. agamst certain losses which are not covered by the ordinary The business men of the country have suffered great losses in the readjustment, now in progress, followin~: war conditions. In the classes of marine insurance. readjustment the business losses occurred first along the Atlantic For instance, this indemnity or insurance covers personal in­ seaboard, and about a year later throughout the Middle West, and still jury to or loss of life of any person, whether on board the vessel another year later along the Pacific coast. _ • In the revenue act of 1918 a relief -provision was inserted which or not ; second, illness of passengers or crew ; damage to other authorized any taxpayer who made a net loss during any taxable year vessels, otherwise than by collision, damage by collision being beginning October 31, 1918, and ending before January 1, 1920, to covered by the ordinary marine insurance; damage to docks or have a redetermination of his income taxes for the preceding year, and to offset his net losses against his income for that year. And, further, any other property, excepting damage to other vessels by col­ if upon such redetermination there was a balance due the taxpayer lision ; damage to cargo or shortage of cargo ; extraordinary he could have the amount refunded from the Treasury or credited to quarantine expenses; customs and immigration fines and penal­ his income for the subsequent year. The proposed revenue act for 1921 contains a relief provision which ties arising from neglect of officers; the repatriation of any authorizes a taxpayer who makes a net loss for any taxable year members of the crew where they are left stranded in foreign beginning after December 31, 1920, to offset such net loss against ports ; and several other items. his income for the subsequent year, and if there is a balance to his credit it may be carried on to another subsequent year. You will These various companies contribute in proportion to their note that business losses occurring between January 1, 1920, and tonnage to a fund which is used to cover all of this class of December Sl of the same year are not relieved against. It chances losses. There is no profit derived from the business whatever, that the bulk of business losses for the period for which no relief is given, to wit, from January- 1 to December 31, 1920, occurred in the it being purely mutual, the payments being made by assessment; :Middle West, so that by the action of the two revenue measures a yet if there is an excess over the losses for any one year, gross discrimination is made against the business men of the Middle West. We are asking to have the revenue measure of 1921, which possibly on account of the fact that certain losses have not been is still under consideration in the Senate, amended so as to do away adjudicated, those funds are invested or deposited and draw with this discrimination. It means a great deal to the business men · interest. of our section. It is no more than equitable and just that our businesa men should be given the same relief as those in other sections of the It is not proposed, as Senators will see by this amendment, to country. prevent the paying of taxes upon those invested funds, but the Very truly, yours, amounts paid by these companies are in no sense profits, and HARRY SHARP, Seoretm·y_ could not be considered as profits ; yet under the decision of the Mr. President, as the law now stands, it skips over the year Treasury, which is being contested and which the Treasury ex­ 1920. We ask that the taxpayers for the year 1920 have the perts who have been assisting the committee say is erroneous, same credit that is accorded those who· lost in the years 1919 they have been considered as income, and therefore taxable. This and 1921. It seems to me it is a fair and reasonable request amendment simply makes clear what is very doubtful now, and these people make. declares that these assessments paid by these companies into this Mr. McCUMBER. Mr. President, I do not know just how the common fund for their mutual protection and not for profit losses which occurred during the latter months of 1920 could be are not income, and are therefore not taxable: The committee apportioned among the several sections of the United StateR. has considered this provision to some extent and, I believe, is I do Jmow that in the latter part of 1920 we had a great ruan;y perfectly willing to have it adopted. delegations, mostly from the East rather than from the West, Mr. PENROSE. Mr. President, I can not say that I have asking that the 1919 provision should be applied to the 1920 looked thoroughly into the proposition of the Senator from West losses and that the 1920 losses might be deducted from any Virginia, who is a member of the committee, but I have had gains made in 1921. The committee made an investigation of ft very carefully explained to me by some of the gentlemen that subject, and they .could not deny that from the- ordinary .

1921. CONGRESSIONAL RECORD-SENATE. 7183 standpoint there could be no just reason for making the differ­ 1\fr. PENROSE. Mr. President, this is about the same propo­ ence between 1919 and 1920, and 1921 and. 1922. Under the pro­ sition as that advanced by the Senator from New York [1\Ir. posed law, if t here is a loss in 1921, it may be deducted, as WADSWORTH] under a different guise. It was very carefully the Senator has stated, from the gains of 1922. considered by the committee and can not be entertained by the But there is another very serious feature. I just asked the committee. The whole subject belongs to the regulation of the experts from the Treasury Department what this would mean, tariff bill and should be brought up when that measure comes and asked them if it would go into $40,000,000 or $50,000,000. before the Senate or is considered in the committee. If the The reply was that it would be hundreds of millions. I asked Senator from Missouri has any views upon the subject when then if it would be $100,000,000. They said that hundreds of . the tariff measure is taken up by the committee, whiCh will millions of dollars would be affected by this change. be on Thursday, the committee will give them very careful We bave been struggling pretty hard for the last month in consideration. order to sa\e a half a million here and half a million there, Mr. SPENCER. The difficulty of the position of the Senator and although it is hard on a person who made a loss in 1920 from Pennsylvania, as I see it, is that this bill is dealing with that be can not deduct that loss from a gain made in 1921, the question. Whether the tariff bill ever will or not is a it does mean over $100,000,000 loss to the Treasury of the problem of the future. United States, and notwithstanding the fact that otherwise Mr. PENROSE. The committee and everyone conversant it would seem to be just, I can not see where we would get with the subject entirely disagree with the Senator from Mis­ that $100,000,000 or $150,000,000 or $200,000,000 back into the souri and hold the view that this proposition is very im­ Treasury. properly in the revenue revision bill. l\fr. TRAMMELL. I would like to ask the acting chairman Mr. SPENCER. Mr. President, I would like to present for of the committee what provisions we have in the bill regarding the judgment of the Senate one or two simple facts in con­ losses. Do we make that provision retroactive? Do we just nection with the amendment. I defer to the better judgment restrict it to the particular year, the tax year? of the Senator from Pennsylvania certainly on matters of l\Ir. McCUMBER. Under the proposed provision of the law, finance and tariff, and yet what does this provision of the as I recall it, although I do not have it exactly in mind, the bill do? los. es for one year may be ct._educted from the gains of a future Cocaine is made from coca leaves. All coca leaves are im­ year; but that is prospective only. It does not go back and ported. We have none in this country. This bill, not the change the past law, so as to allow a loss that was made in tariff bill but this bill, says to the American manufacturer, 1920 to be deducted from a gain made in 1921. "We will charge you 1 cent an ounce on all coca leaves that l\Ir. TRAl\11\IELL. The bill as it stands at present does not you bring into the com~try, even though you bring them here permit deductions which may be retroactive; for amortization, not for the purpose of sale but for the purpose of manufacture for instance? or transformation into cocaine, and then we will tax the l\fr. McCUMBER I do not quite understand the proposition cocaine after you have made it." ' made by the Senator. . I do not believe the bill ever intended to tax coca leaves Mr. TRAMMELL. Under the bill as it now stands, it does wh~n they were brought here merely for the purpose of trans­ not permit, I have just gathered from the statement, that you formation into cocaine, but that is the way the bill reads and may take a loss that is retroactive, but it does permit a tax­ that is the way the department has construed it. What follow·s? payer to go back and charge off for amortization? It follows that when the American manufacturers import cora Mr. SMOOT. Only for the existing year. leaves it takes 10 pounds of coca leaves to make 1 ounce of Mr. McCUMBER. It charges that off each year for the losses .cocaine, and they are charged 1 cent an ounce on their coca of that particular year. I do not understand a man can go leaves. The mathematics are simple. There are 160 ounces back and charge off against 1921 gains a loss by amortization in the 10 pounds, so they are charged $1.60 on the coca leaves in 1920. That 1920 amortization will have been deducted which they are to transform into cocaine. Then they are already from the 1920 gains. charged in addition 10 cents a ponnd on the coca leaves, which Mr. TRAMMELL. I got the impression that it did permit is the tariff. That is $1 more. Then they are charged 1 cent that, becauS'e I think it permits a man to revise his request. I for the ounce of cocaine which they make. Add them together. am under that impression, but I am probably mistaken. The American manufacturer before he has put an ounce of l\1r. SMOOT. If the Senator will remember there was an work on it is charged under the provisions of this bill $1.60 for amendment agreed to the other day that limited the amortiza­ his coca leaves, 10 cents a pound. tariff, or $1, making $2.60, tion to claims for 1918 and 1919. Any claim after that, by the and then 1 cent for the ounce of cocaine that he produces, a acceptation of the amendment offered by the junior Senator total of $2.61. from Utah, is barred entirely. What does he come in competition with? When the foreign 1\Ir. TRAl\fMELL. I was not aware of that amendment. I manufacturer makes cocaine and brings the completed manu­ did not happen to notice at the time it was adopted. factured article over here and sells the cocaine what is he The PRESIDENT pro tempore. The question is on the charged? He is charged $2 an ounce on his cocaine and 1 cent amendment offered by the junior Senator from Kansas [Mr. excise duty besides, making a total of $2.01, as against the CAPPER]. $2.61 which the American manufacturer is charged. The amendment was rejected. Now, what would be the effect of my amendment? All that Mr. SPENCER. Mr. President, I offer the following amend- the amendment does is to provide that when coca leaves are m~L · brought into this country, not for the purpose of consumption The PRESIDENT pro tempore. The amendment will be nor of use but merely for the purpose of manufacturing or stated. transformation into the finished product, the finished product The READING CLERK. Amend the committee amendment on shall be taxed, but that the raw material, the coca leaf, shall page 226 by adding after the word " drugs," in line 6, the fol- not be taxed. That is fundamental in tariff as I have learned lowing proviso : · it from the Senator from Pennsylvania. The proposition of Pt·ovidea, That the provisions of this section shall not be construed putting this tax on the coca leaves as they come into this as requiring an importer of coca leaves who is also a manufacturer of country as raw material bas no foundation in the logical prin­ any compouiJd, salt, derivative, or preparation thereof, to pay any ciples of tariff legislation. internal-revenue tax on such coca leaves heretofor.e or hereafter im­ ported and removed exclusively for manufacturing purposes by such im­ The amendment I propose does nothing more than to relieve porter and manufacturer, but nothing herein contained shall relieve the manufacturer of cocaine in the Vnited States from a tax such importer and manufacturer from the payment of any import duty upon the coca leaves which he receives and transforms into on such coca leaves or internal-revenue tax on any compound, salt, cocaine and puts the tax on cocaine when the transformation is derivative, or preparation thereof. complete. He ought no1; to be subject to the tax upon the The PRESIDENT pro tempore. The Chair would suggest to raw material. How that is alone a question of tariff with the Senator from Missouri that the first step must be to recon­ that pro\ision in the pending bill is difficult for me to sider the vote by which the amendment of the committee was understand. agreed to. Mr. McCUMBER. Mr. President, I presented in committee Mr. SPENCER. If the Chair will permit me, my amendment exactly the same amendment that the Senator from Missouri can be framed as a new section by the change of a word elimi­ now offers to the bill. It was considered. It deals only with nating the word " Provided " at the beginning of the amendment the matter of imported coca leaves. Of course, as the Senator and striking out the words " this section," and inserting the has said, they are all imported, but it is a matter of importations words " section 1004." That will obviate the necessity of a re­ and tariff. It appeared to me and I think I was satisfied that consideration. there '\Vas an injustice that ought to be corrected. I think the The PR!i}SIDENT pro tempore. The question is on agreeing committee were satisfied with that, but they agreed and I was to the amendment of the Senator from Missouri as modified. compelled to agree with them that it belonged to· the domain .

7184 CONGRESSIONAL REOOR.D-SENATE. NOVEl\ffiER 2, of tariff legislation and that it was a modification of the tarifl: gains which may be mad-e by the foTeign ub idiary. The ex­ laws, and there is where tbe real remedy would J.ie. The com- planation of the amendment continues: mittee -considered it improper at that time, even though I at- .Assume that the foreign cor}Joration accumulat d a surplus tempted, .as the Senator is now attempting at this time, to en- of $200,000 upon which it has paid income and profits taxes graft it upon this bill. of $80,000, leaving $1.20,000 of disposabl-e or distributable sur- The PRESIDENT pro tempore. As the Chair understands the plus. Assume fUrther that it actually pays dividends to the Senator from Missouri has modified his amendment so as to in- American parent company of $50,000, i. e., ()f five-twelfths. of its troduce it as a separate paragraph. Th~ question is upon agree- disposable surplllS. Then the .American parent company may ing'to tlie amendment offered by the Senator from Missouri take -credit for five-twelfths of the '$80;000 taxes which the The amendment was rejected. foreign subsidiary paid, i. e.~ it may take a credit for $33,333.33. Mr. SMOOT. Mr. President, in behalf of the junior Senator In order to protect the .American tax, a fUrther limitation is from Minnesota {Mr. KELLOGG], I offer the following amend- established. It is provided that the credit allowed to the ment to the committee amendment. American parent company shall in no case exceed the same pro­ The PRESIDENT pro tempore. The amendment will be portion ·of the American tax which the amount of dividends stated. (from the fo.reign subsidiary) bears to the entire net income . Tbe READil'G CLERK. On page 98, after line 14, add a new of the American parent company. Suppose the total income of subdivision to read as follows : the American -company is $400.000 .and the total American tax (e) For the purposes of this section .a domestic corporation whieh is $60,000. Of this total income, $50,{)()(), or one-eighth, consi ts owns a majority of the voting stock of a foreign corporation from of dividends from the fore·gn1 compan Ob · 1 th f · which it receives dividends -(not dednctible nnder section 234) in any y. VlOUS Y e ore1gn taxable yeru· shall be deemed to have paid the same proportion of any credit .should not be permitted to wipe out or cancel a tax based income, war-profits, or excess-profits taxes paid by such foreign corpo- upon purely American inco-me. In order to prevent abuse, ration to any foreign country or to any possession of the United States, therefore, th~ entire credit in question is further limited so upon or with respeet to the accumulated profits of such foreign corpo- th t •t t ~r~ • hth f th .._ ration from which such dividends were paid, which the amount of such a 1 can no exce=.~ one-e1g o e .o.merican tax· i e. dividends bears to the amount of such accumulated profits : Provided., in this particular illustration, can not exceed one-eighth of That the credit allowed to any domestic corporation under this sub- , $60,000, ()r $7,500. division shall in no case exceed the same proportion of the taxes against which it is credited, which the amount of such dividends bears to the A provision of this kind, giving the credit to a domestic cor- amount of the entire net income of -the domestic co1·po.ration in which poration .which owns a majority of the voting stock of a foTeign such dividends are inclnded. The term " aceumulated pr.ofits" when cor ti · t · d · ct• 240 ( ) f th used in this subdivision in reference to a foreign corporation means the pora on, lS con ame In se 10n c o e revenue act amount of its gains, profits, or income in excess of the income, war- of 1918. The amendment here under discussion merely rein­ profits, and excess-profits taxes imposed upo:q. or with respect to such corporates this credit in the proposed revenue act of 1921, with profits or income; and tire -commissioner with the approval of the Sec- safe:!""~ds r~ · d to t t th Am · tax bo d retary shall have full power to determine from the accumulated profits eU«-L uesigne pro ec ~ er1can as a ve e- of what year or years sueh dividends were paid; treating di-vidends scribed. In short, the amendment in question is merely an paid in the firs't 60 days of any year as having been paid from the ac- improved version of an existing provision of law. cumulated pr.ofits of the precedmg year or years (unless to his satis- Mr. SIMMONS. With that statement of the purpose and faction shown otherwise), and in other respects treatin~ dividends as effect of the amendment, I shall have no ob-tection to -t. I having been paid from the most recently accumulated gams, profits, or oT 1 earning In the case of u "foreign corporation, the income, war-profits, think it is entirely fair. and excess-profits taxes .of which are ·determined on the basis of an Th PRESIDENT t Th t• · accounting period of less than one year, the word " year " as used in · e pro empore. e ques 10n IS ()n agreeing this subdivision shall be eonstrued to mean such accounting period. to the amendment proposed by the Senator from Utah [Mr. On page 98, line 15, strike out "(e)" -and insert "(f)." SMOOT] on behalf of the Senator from Minnesota· [Mr. KELLOGG]. Mr. PENROSE. Mr. President, my attention has been called 1- The amendment was agreed to. · to this amendment, and I know it has been very carefully Mr. CALDER. Mr. President, I offer the amendment which drawn. I am entirely 'villing to accept it I send to the desk. Mr. SIMMONS. Mr. Presiden~ some Senator representing Th~ PRESIDENT pro tempore. The a:mendment will be the majority who is familiar with the amendment should ex- stated. plain to the Senate what it is for. It is difficult just from The READING CLERK. On page .81, -after the word "title" in hearing 1t read at the Clerk's desk to catch the full meaning. line 25, it is proposed: to insert: Mr. Sl\IOOT. . If tbe Senator desires, I will read a brief state- or corporations organized exclusively for cooperative home ownership ment explaining just what the amendment is, ()r if the Senator and which require that all occupants of .any part of the building~ prefers merely a brief statement-- owned shall be pro rata owners of its entire issue of shares. Ml·. SIMMONS. Read the explanation. Mr. CALDER. Mr. President, this amendment is to that l\Ir. SMOOT. This is the explanation of the amendment. part of the bill which provides a tax on corporations. There This amendment extends the credit for foreign income and are certain exemptions from taxation in the case of corpora- pi•ofits taxes I>aid, to a domestic .corporation which owns a ma- tions, such as mutual saving banks, cooperative building and jority of the voting tock of a foreign subsidiary, from which loan associations, and the profits of other corporations that subsidiary the domestic corporation receives taxable dividends. are purely mutual. This amendment exempts !from the corpora- In sueh a case a foreign subshiiary is much like a foreign tion tax the profits on homes that nre owned and occupied by branch of au Atnerican corporation. If the American corpora- two or more families. tion owned a foreign branc~ it would include th~ earnings or In my section of the country there are a great many build­ profits

'Without the latter part of the amendment, the owner of the make three changes already. Therefore it does seem to me house could have made the interest upon the difference and that I had better have it correct before I offer it; and I nm taken that and been exempt from all forms of taxation. going to ask the Senator in charge of the bill, if there are no Mr. CALDER. Mr. President, I have no desire to "put any­ other amendments to be offered to the bill as in Committee of thing over " on the Senate. I am very glad the suggestion was the Whole-- made that in case there are any profits, and they are invested . Mr. ASHURST. l'lfr. President-­ in out ide properties, they shall be taxed, or that in case Mr. BROUSSARD. Mr. President-- any part of the building in question is rented, that income shall Mr. KING. Mr. President, as I am advised, the Senator from be taxed. • Missouri [Mr. REED] intends to offer his amendment on the I think the amendment is perfectly clear now, and I hope it bonus question while the bill is in Committee of the 'Vhole. will be agreed to. I have just been told by Col. Halsey that, not anticipating that The PRESIDING OFFICER. The amendment will be stated. it would be reached this evening, he has gone home. The llEADING CLERK. After the word " title," it is proposed to Mr. McCUMBER. If the Senator will allow me, I think it in ·ert: was understood that the Senator from Missouri do · not desire Or corporations organized exclusively for .the purpose of cooperative to offer that amendment until to-morrow. home ownership whereof the entire capital stock shall be held by the Mr. MOSES. In the Senate? stockholders in proportion to the number of rooms occupied or to be occupied by them in the apartment building owned by the corpora­ Mr. McCUMBER. No; in Committee of the Whole. tion, and in which building all apartments or flats have been leased Mr. KING. The Senate knows that the Senator from lUi·­ to stockholders of the corporation ; but such corporations shall be sub· souri has been quite occupied for some time, and I think he ject as other- persons to the tax upon their net income from interest, dividends, and rents. has perhaps taxed himself rather severely. l\lr. 1\fcOUMBER. I appreciate that, and do not desire to Mr. McCUltillER. l\lt·. President, I am willing to support press the mattet·; but I understand that there are a number of this amendment for the time being. I can not, however, agree other little amendments that I should like to dispose of thi that the plan of buying individual apartments is very desirable, evening before '"e recess. · even though it may be for the purpose of securing homes l;lnder Mr. KING. To be sure. I simply wanted to protect the present condition . Senator from Missouri. What the Senator says is true, that the owners of many Mr. 1\lcCUl\IBER. He will be protected. apartment houses and office buildings are disposing of the Mr. BROUSSARD. Mr. President, I have an amend~nt seYeral apartments in each building, so that n family may buy which has been printed, and which was argued at some length an apartment. They are disposing of them at the present high when the bill was first brought into the Senate. It proposes to cost of construction. They are disposing of them in good time, strike out the provision which requires the husband in the com­ before the crash comes which will immensely lower rents and munity-property States to include in his income that of his wife. costs of building in this city as elsewhere, and the individuals Some of the Senators whose constituencies are interested in are paying mighty high prices to-day for their interests in these this matter happen to be away. There are eight States in­ buildings. volYed. The Senators from those States did not expect the That, however, is not the worst feature of it. Personally, amendment to come up this evening. If the Senator in charge 1 do not like apartments very well. I admit it. I still believe of the bill will consent that the amendment may be offered to­ in the old-fashioned American home, where there is room morrow as in Committee of the Whole I shall appreciate it enough to stray around. In buying these apartments you buy very much, because some of the Senators who were here all day nn npartment of two or three or four or five rooms. Somebody left here just a few minutes ago, not thinking that the matter else buys the apartment next to you. You can not get away would be reached. from your neighbor. It does not make any difference how thin The PRESIDING OFFICER. The Chair informs the Senator the walls may be, or how long you can hear him snore during from Louisiana that amendments can be offered when the bill the night, you are elected to remain there the rest of your is before the Senate, irrespective of whether they have been life. No matter how disagreeable your neighbor are you are offered as in Committee of the Whole or not. caught in that trap and you must make the best of it. Mr. BROUSSARD. Yes; I understand that, Mr. President, I disagree with those Senators who say it is a ltealthy con­ but I desire to offer this amendment as in Committee of the clition. It certainly is not a healthy condition for the fellow Whole for the purpose of discussion; and then we may have who ha. · to hear the snor·ing during the night in the adjoining another opportunity, if we decide to do so, to offer it in the room for the rest of his life. Senate itself in open session. We do not care to waive the op­ l\Ir. CALDER. Mr. President, will the Senator yield? portunity of discussion, because this is a subject which we think Mr. 1\.fcCUMBER. I yield. the Senators from the common-law States do not fully under­ Mr. CALDER. It is a healthy thing to encourage horne­ stand. We should like to discuss it so that our position may owning and home-building, is it not? be known, and I make the request that this amendment may be Mr. 1\:IcCUl\IDEll. Yes; homes, little homes, I do not care permitted to come up to-morrow as in Committee of tlte Whole. · how small they are provided each individual owns ltis own Mr. l\IcCUl\IDER. Of course, I shall not press it if the Sen­ real home, and it is a home and not a mere stall to live in. ator is not ready, nor shall I ask to press it this evening; Mr. POMERENE. Mr. President, if I may mak" a suggestion, but I hope that among these amendments there may be some I have been advised that this condition prevails here in the to which there will be no objection and on which there will be District of Columbia to some extent, but it has also been sug­ no long discussion and· that those may be disposed of this gested to me that it is one of the methods that are adopted to evening. defeat the rent commission law here in the District. Mr. Sil\ll;IONS. Mr. President, I think myself this is rather REPORT OF SOUTH CAROLINA BOLL WEEVIL COMMISSION. dangerous legislation. I think this is an amendment that will Mr. MOSES. Mr. President, I ask unanimous consent, out of lead to evasion; and while I do not wish to discuss it, I hope order, to report favorably from the Committee on Printing Sen­ it will not prevail. ate resolution 158. I further ask unanimous consent for the The PRESIDING OFFICER. The question is upon the immediate consideration of the resolution. amendment of the Senator from New York [Mr. CALDER] to the Mr. ASHURST. Mr. President, I have no objection to the amendment of the committee. report being presented. I think it is very proper, but I object On a division, the amendment to the amendment was re­ to the present consideration of the resolution. jected. Mr. MOSES. I hope the Senator w:m not press that objec­ The PRESIDING OFFICER. Without objection, the com­ tion until there may be some explanation. mittee amendment as it was before this amendment was pro­ Mr. ASHURST. I shall be very glad to withhold it. posed wiH be agreed to. The bill is before the Senate as in Mr. MOSES. This is a resolution for reprinting, with sev­ Committee of the Whole and open to amendment. If there be eral additions, a Senate document which was printed some no further amendment to be proposed, as in Committee of the years ago, but which is now out of print. Under ordinary cir­ Whole, the bill will be reported to the Senate. cumstances I could, in my capacity as chairman of the Joint Mt·. SMOOT. Mr. President, I desire to offer the manufac­ Committee on Printing, issue an order for its reprinting; but turers' sales tax while the bill is in the Committee of the it so happens that it deals with a subject of considerable im­ Whole; but I am compelled to take one of the bills to-night and portance to a wide section of the country, namely, the ravages mark out all of the provisions that the sales tax will eliminate, of the cotton boll weevil, and there happen to have been dis­ and I shall also have to take notice of every amendment that covered, in the interim since the first printing of the report and has been made, and it is impossible for me to do that until the present time, certain things-- after the amendments have been agreed to. I have had the M:r. ASHURST. The explanation i · very satisfactory, and I amendment printed, and since it was printed I have had to withdraw the objection. . .1921. CONGRESSIONAL RECORD-SENATE . 7187

The PRESIDING OFFICER. The objection is withdrawn. a gentleman of excellent judgment and he knows the facts in Tlle rerlOrt will be received. this case. Mr. ASHURST. Mr. President, just a word. It will be The reading clerk read as follows: obsen·ed, of course, that I am peculiar in that I always want PHOENIX, .ARIZ., Oct'obel' 11, 1921. to know what the Senate is doing before I give consent. Senatot· HE~RY F. AsHURST, · Washington, D. 0.: M1·. MOSES. May I add, that with the Senator's newly dis­ Director Forbes of Veterans' Bureau has submitted report to Pres!dent <'overed passion for agriculture, he, of course, is interested. strongly urging immediate action to meet present emergency arising 1\Ir. ASHURST. I belong to the agricultural bloc. from needs of hundreds of disabled former service men who, with ap­ proach of winter, are pouring into Arizona, where facilities for their The PRESIDING OFii'ICER. The Senator from New Hamp­ care are very inadequate. He recommends immediate completioD; of .~ lliH~ asks unanimous consent for the present consideration of Whipple building program through letting of contracts, it being obvious the resolution. that under system now in effect winter wilJ be well over before any of the buildings now under construction will be ready for occupancy. The resolution was considered by the Senate and agreed to, Maj. Louis T. Grant, manager Veteralfs' Bureau, twelfth district, is now a follows: in Washington, and I therefore urge that Arizona congressional delega­ R cEfr. Pre ident, I move that the amendment friend from Utah [1\Ir. SMOOT] and other Senators, as well, be postponed indefinitely. . rendered yeoman service in assisting to secure that large ap­ Mr. .ASHURST. I hope the Senator will not do that. This propriation for the hospitalization of ex- ervice men. 'Ve ap­ amendment can not be waved aside in that manner. propriated the sum of $18,600,000 for the ho pitalization of 1\Ir. PENROSE. Well, it can not go on the bill. It does not soldiers and that sum has been spent or allocated to be spent belong to the bill, and it will not go on the bill. . on hospitalization. l\Ir. ASHURST. I will ask that it be passed over until to· The amendment I have introduced is a companion to the bill morrow for a vote. introduced by 1\Ir. LANGLEY, of the House, and I will say that Mr. SMOOT. Does the Senator withdraw the amendment'? Col. Forbes approves the bill. . No bill that could be before the Mr. ASHURST. No; I do not withdraw it. Let it be voted Congress is of more importance than this particular one at this on to-morrow. time. While I am enthusiastic about the bonus, and the land The PRESIDING OFFICER. The Senator from Arizona options and the farmstead , and shall take plea ure, if I have asks unanimous con ent that the vote on his amendment be an opportunity, in voting for the bonus bill, I must say that postponed until the calendar day of to-morrow. the proper hospitilization of ex-service men and the prope1· Mr. ASHURST. Upon the day when the other amendments vocational training of the men appeal to me also. to this pending bill are voted upon. The opportunity to learn how to earn a living, the opportunity Mr. PENROSE. 1\Ir. President, the request is highly irregu· to learn a trade, the opportunity to recover their health appeal lar, but owing to my great admiration for the Senator's forensic much to me. ability and statesmanship attainments, I can not find it in my So I rose this evening to call this matter to the attention of heart to resist or decline the request. Let it go over until the Senate. I am not now going to scold the authorities for to-morrow by unanimous consent. this or that. The hospitalization work that has been done has The PRESIDING OFFICER Without objection, the vote on been well done~ and it has been, within some limitations, ample; the amendment offered by the Senator fi•om Arizona will be but we most not forget that it was a large Army we called to passed over until the calendar day of to-morrow. OONGR.ESSION AL RECORD-SENATE. 7189

':;)Ir. ASHURST. Let me understand the meaning of the shares of stock that are issued with the ficti':ious value of $10.0 phrase "calendar day of to-morrow." that are really worth $100. It is a deception on the face of it. The PRESIDING OFFICER. If the Senate takes a recess The face value of stock is of no importance whatever except to-night, to-morrow will be the calendar day of to-morrow, possibly to deceive the purchaser. Therefon~ the system that but the legislative day of to-day will continue to-morrow. is being adopted now in the organization of companies for the Mr. PENROSE. I expect to ask the Senate to take a recess. development of land schemes and colonization schemes is to The PRESIDING OFFICER. Calendar day is the proper have the shares of the corporation divided into a certain num­ designation. The bill is as in Committee of the Whole, and ber without designating the value and then allowing the value open to amendment. to be assessed by the purchaser and allowing the value to in­ Mr. PITTMAN. Mr. President, I have some amendments on creasf' as the property itself increases in value. the desk which I would like to have presented. There has been a suggestion by the Senator from Utah with The PRESIDING OFFICER. The amendment offered by the regard to the administrative features of the amendment, and Senator from Nevada will be reported. very probably there is considerable in what he states in con­ The READING CLERK. On page 239 strike out lines 20 to 25, nection with that feature. Therefore I ask unanimous consent inclusi>e; on page 240 strike out lines 1 to 7, inclusive; and that this go over so I may confer with Senators and with the insert in lieu thereof the following: chairman of the committee or the expe1·ts with regard to that 3. Capital stock, Issued : On each original issue, whether on organiza­ phase of it before again submitting it. tion or reorganization, of certificates of stock, or of profits, or of interest in property or accumnlati.ons, by any corporation, on each Mr. PENROSE. I shall not object; but it is an amendment $100 of face value or fraction thereof, 5 cents: Provided, That where that never can be admitted on this-bill with the consent of the a certificate is issued without face value and the actual value is over committee. However, it is the Senator's amendment, and if he $100 per share, the tax shall be 5 cents on each $100 of actual value or fraction thereof, and in case the actual value is less than $100 does not wish to press it now, let it go over. per share, then the tax shall be proportionately reduced. The The PRESIDING OFFICER. Without objection, the amend· stamps representing the tax imposed by this subdivision shall be ment of the Senator from Nevada will go over. attached to the stock books and not to the certificates issued. Mr. PENROSE. Mr. President, I do not know that there are The PRESIDING OFFICER. The amendment proposed by any further amendments Senators have to submit, which means the Senator from Nevada is an amendment to the committee the amendments contemplated to be offered by individual Sena­ amendment which has already been adopted. It will therefore tors after consideration of the committee propositions have all be necessary to reconsider the Tote by which the committee been offered. There only remain to be considered, so far as I amendment was adopted. know, the so-called sales-tax proposition of the senior Senator l\Ir. PITTMAN. I did not understand the parliamentary from Utah and the soldiers' bonus amendment offered by the situation. senior Senator from Missouri. I therefore feel that nothing The PRESIDING OFFICER. If there is no objection the would be gained by going on with the revenue bill for the rest vote by which the committee amendment was adopted is re­ of the evening. I had expected to continue until 11 or 12 considered and the amendment of the Senator from Nevada o'clock, and so informed Senators. is in order as an amendment to the amendment of the com­ As practically nothing can be accomplished under the circum­ mittee. stances, therefore I intend to move an executive session ; but Mr. SMOOT. l\1r. President, I hardly think the provision of before doing that I ask unanimous consent that when the Sen­ the amendment could be carried out. I think the Senator will ate resumes its legislative session at the expiration of the exec­ have to change the amendment. It would be impossible of ad­ utive session, which I shall move, it take a recess to meet at ministration. This is a s~amp tax, and we certainly could not 11 o'clock to-morrow morning. have it included in the proportion which the value of the stock The PRESIDING OFFICER. Is there objection? The Chair bears to $100. It might be sc ·en-eighths of 1. cent, for instance, hears none, and it is so ordered. ar:. 1 we have no stamp of that denomination. Mr. PITTMAN. In that case, the obligation being upon the EXECUTIVE SESSION. issue of the stock to pay the full amount, I assume that he would Mr. PENROSE. I move the Senate proceed to the considera- have to pay the excess so as to obtain the stamp of the proper tion of executive business. . denomination. The motion was agreed to, and .the Senate proceeded to th~ Mr. SMOOT. That is not what the amendment provides. If consideration of executive business. After 10 minutes spent in it were attempted to be carried out, as I understand the reading executive session the doors were reopened. of it, it would be impossible to adminh::ter it. Mr. PITTMAN. What I am getting at is this: I propose to CHARLES lUVER BRIDGES, M.A..SS~CHUSETTS. change the section very litee. For nonpar value stocks it is as­ Mr. CALDER. I report back favorably, without amend­ sumed that they have a value of $100 a share. As a matter of ment, frorri the Committee on Commerce t;.9.e bill (H. R. 6152) fact there are a great many of these companies whose stock has to authorize the construction of drawless bridges across a a value of only $1 a share, with the result that under the pro­ certain portion of the Charles River, in the State of Massa· visions of the bilJ a great many of these small corporations with chusetts, and' I submit a report (No. 308) thereon. I ask for no par value stock are required to pay a stamp tax of one hun­ its present consideration. · dred times what it was the intention probably of Congress to There being no objection, the Senate, as in Committee of the cause it to pay. Whole, proceeded to consider the bill, and it was read, as fol­ Mr. SMOOT. But the Senator can plainly see that we could lows: not have a stamp tax of one one-hundredth of 5 cents. If it Be it enacted, etc., That the metropolitan pa.rk commission, or any town or city, or any other public body authorized by the State of was 33!, it would be one-third of 5 cents. We could not ad­ Massachusetts, all or any of them, be, and they hereby are, author­ minister it, I will say to the Senator, under the wording of the ized to construct, at any time hereafter, drawless bridges across the amendment. Charles River in the State of Massachusetts connecting Massa('hn­ set.i:s Avenue in Cambridge and Mas~chusetts Avenue in Boston, and Mr. PITTM.A.l~. There is very rarely a case in which one at any other points upon said river at, near, or above said Massachu­ share of stock of a dollar par value is issued, but we could pro­ setts Avenue: Provided, That said bridges. shall be at least 12 feet vide in the amendment, if the Senator desires-ana I brought above the ordinary level of the water in the basin over the main ship channel, and the piers and other obstructions to the flow of the river this up for the purpose of showing the injustice of the law­ shall be constructed in such form and in such places as the Secretary that in no case should it be less than 5 cents. of War shall approve : Provided turthe·r, That before the c<>Bstruc­ l\fr. SMOOT. The same thing would apply if it was 100 tion of said bridges or any cf them is begun, the State of l\!a sachu­ setts shall, by legislative enactment, provide for adequate compensa­ shares a_nd it was only one-third of the amount or one-third of tion for the owner, owners, lessee, or lessees of property abutting on 100 shares. If the tax was $5 it would be one-third of $5, said river above any of the said bridges for damages, if any, caused which would be $1.66-f. to said property Ol' leasehold interests therein by reason of inter­ ference with the access by water to said property, due to the con­ Mr. PITTMAN. But as I said before, the obligation being struction of bridges without draws: And provided further, That ths upon the issue of stock to pay the full amount of tax, if it was said legislative enactment shall provide for the appointment of three a case where he could not split it he would have to pay the commissioners to hear the parties in interest and assess the damages to said property; their decision as to the amount of damages and excess so as to obtain the stamps. questions of fact to be final ; said commissioners to be appointed by I have correspondence here, but I do not wish to take up the the Supreme Judicial Court of Massachusetts. Except as inconsistent time of the Senate reading it. As the Senator from Utah herewith, this act shall be subject to the provisions of an act entitled knows, it is a very oppressive matter. There are a great many "An act to regulate the construction of bridges over navigable waters," companies now being organized with nonpar value shares. It ap~~~~eg_ ~~~'ih t~!· J:g:- to alter, amend, or repeal this act is hereby · expresslY. reserved. is the fairest and most honest way, in my opinion, to issue 1 stock. When you issue stock · ~s of a par value of $100 it is The bill was reported to the Senate without amendment,. ejmply a fiction. There is probably not one in a thousand oxdered to a third reading, read the third time, and passed. 1190 CONGRESSIONAL RECORD-SENATE. NOVEJ\IBER 2, , CHOCTA WHATCHEE RIVER BRIDGE, FLA. APPOTh'Tl\IENTS, BY TRANSFER, IN THE REGULAR ARMY. 1\lr. CALDER. I also report back favorably, without amend­ FIELD AR'fJ:LLERY. ment, from the Committee on Commerce, the bill (H. R. 84i7) to extend the time for the construction of a bridge across the Capt. Roscoe Fawcett, Air Service, with rank from July 1, Cboctawha tchee River, near Caryville, Fla., and I submit a re­ 1920. port (No. 309) thereon. First Lieut. l\Iaurice Shefstad Hill, Air Service, to be fir t There being no objection, the Senate as in Committee of the lieutenant, Field Artillery, effective November 27, 192J, with Whole proceeded to consider the bill, and it was read as follows: rank from July 1, 1920. Be it enacted, etc., That the times for commencing and completing AIR SERVICE. the construction of a bridge and approaches thereto authorized by the act of Congress aporoved November 19, 1919, to be constructed Capt. William E. Kepner, Infantry, with rank from July 1, by the State Road Department of the State of Florida, across the 1920. Choctawhatchee River, ncar Caryville, Fla., are hereby extended one PROMOTIONS IN THE NAVY. and three years, respectively, from the date of approval hereof. SEc. 2. That the right to alter, amend, or repeal this act is he1·eby The following-named captains to be rear admirals in the Navy expressly reserved. from the 3d day of June, 1921 : The bill was reported to the Senate without amendment, Sumner E. W. Kittelle. ordered to a third reading, read the third time, and passed. 'William V. Pratt. · RECESS. Capt. Louis M. Nulton to be a rear admiral in the Navy from l\fr. IcCUilfllER. I move that the Senate take a recess until the 12th day of August, 1921. to-morrow at 11 o'clock a. m. The following-named commanders to be captains in the Navy The motion was agreed to, and (at 7 o'clock and 25 minute~ from the 3d day of June, 1921 : p. m.) the Senate ·took a recess until to-morrow, Thursday, \Villiam D. Leahy. William T. Tarrant. NoYember 3, 1921, at 11 o'clock a.m. Thomas L. Johnson. Yancey S. Williams. George T. Pettengill. David C. Hanrahan. NOMINATIONS. Charles P. Nelson.· Edward B. Fenner. Victor A. Ktinberly. Henry E. Lackey. Executive nominations recei'l/ed by the Senate November· 2 The following-named commanders to be captains in the Navy (l,egislative day of October 20), 1921. from the 1st day of July, 1921 : E~-voy ExTRAORDINARY AND MINISTER PLENIPO~NTIARY. Adolphus E. Watson. Joseph Saul Kornfeld, of Ohio, to be envoy extraordinary Harry L. Brinser. and minister plenipotentiary of the United States of America James H. Tomb. to Persia. Commander Edgar B. Larimer to be a captain in the Navy SURVEYOR GENERAL OF OREGON. from the 20th day of July, 1921. Wesley W. Caviness, of Vale, Oreg., to be surveyor general of Lieut. Commander Arthur H. Rice to be a commander in the Oregon, vice Edward G. Worth, te1·m expired. Navy from the 1st day of January, 1921. The following-named lieutenant commanders to be command- COLLECTOR OF INTERNAL REVENUE. ers in the Nayy from the 3d day of June, 1921: Fred L. Woodworth, of Lansing, Mich., to be collector of in­ Roscoe C. MacFall. John J. London. ternal revenue for the first district of .1.\Hchigan in place of John Walter H. Lassing. Vaughn K. Coman. A. Grogan. Laurance N. McNair. Reed M. Fawell. UNITED STATES ATTORNEYS. Stanford C. Hooper. Ralph C. Greene, of New York, to be United States attorney, Lieut. William C. Barker, jr., to be a lieutenant commande1: eastern district of New York, vice Wallace E. J. Collins, ap­ in the Navy from the 15th day of August, 1918. pointed by court. The following-named lieutenants to be lieutenant commanders William M. Gober, of Florida, to be United States attorney in the Nary from the 3d day of Jtme, 1921: for the southern. district of Florida, vice Herbert S. Phillips, Penn L. Carroll. Frank D. Manock. term expired. Stuart S. Brown. Chauncey A. Lucas. Thomas A. Brown, of West Virginia, to be United States Howard H. J. Benson. James B. Glennon. attorney, northern district of West Virginia, vice Stuart W. Vance D. Chapline. Frank A. Braisted. Walker, resigned, effective December 1, 1921. Raleigh C. Williams. Henry G. Cooper, jr. RECEIVER OF PUBLIC MONEYS. Edgar A. Logan. Percy T. Wright. Harold A. Waddington. Zachary Lansdowne. Mateo Lujan, of Santa Fe, N. Mex., to be receiver of public Alger H. Dresel. Archibald McGlasson. moneys at Clayton, N. Mex., vice Thomas E. Owen, whose term Robert P. Guiler, jr. Rush S. Fay. has expired. Howard K. Lewis. Walter D. Seed, jr. P~LIC HEALTH SERVICE. Franklin S. Steinwachs. Earle C. Metz. Surg. Ezra K. Sprague to be senior surgeon in the Unitecl Wadleigh Capehart. Lyal A. Davidson. States Public Health Service, to rank as such from May 1, 1921, Donald B. Beary. Charles J. Moore. in place of Senior Surg. H. W. Austin, placed on waiting orders. William A. Richardson. Lawrence F. Reifsnider. PROMOTIONS IN THE REGULAR An:MY. Lieut. Earl A. Mcintyi·e to be a lieutenant commander. in tl.I~ To be colonels. Navy, from the 1st day of July, 1921. Lieut. Col. Robert Halford Peck, Infantry, from October 26, The following-named lieutenants (junior grade) to be lieuten- 192J. ants in the Navy from the 1st day of July, 1919: Lieut. Col. Halsey Edward Yates, Infantry, from October 26, Joseph H. Hoffman. Walter .M. .A. Wynne. 1921. Robert M. Farrar. John M. Field, jr. AfEDICAL CORPS. Maxwell Cole. Lowell Cooper. To be captains. Ensign Walter 1\f. A. Wynne to be a lieutenant (junior grade) in the Navy from the 5th day of June, 1918. First Lieut. James Frank Brooke, Medical Corps, from Oc­ The following-named ensigns to be lieutenants (junior grade) tober 23, 1921. in the Navy from the 1st day of July, 1920: First Lieut. William Presley Dingle, Medical Corps, frqm Albert P. Burleigh. October 23, 19~1. Ten Eyck De Witt Veeder, jr. First Lieut. Alfred Mordecai, Medical Corps, from October 25, 1921. The following-named passed assistant surgeon to be surgeons First Lieut. Leland Oliver Walter Moore, Medical Corps, from in the Navy, with the rank of lieutenant commander, from the OctoiJer 25, 1921. 11th day of May, 1921: , First Lieut. 'Villiam Davis Gill, Medical Corps, from October James G. Omelvena. John C. Parham. 28, 1921. Joseph J. O'Malley. John T. Borden. First Lieut. George Edward Rehberger, Medical Corps, from Jasper V. Howard. Chester Mel. George. October 29, 1921. Clarence C. Kress. Edward E. Woodland. Robert F. Sheehan. Robert F. Jones. APPOINTMENT IN THE REGULAR ARMY. Luther Sheldon, jr. Jesse B. Helm. GENERAL OFFICER. Asst. Surg. John R. White to be a passed a.ssistf'.nt surgeon in Brig. Gen. Harry Clay Hale to be major general from Novem­ the Navy, with the rank of lieutenant, from the 30UJ. day of ber 2, J921. July, 1919. 1'fl'l1... CONGRESSIONAL RECOR·D-SENATE. 7191!

Asst. Surg. Philip S. Sullivan to be a passed assistant sur· Allen F. Bigelow. Leon H. French. geon in the Navy, with the rank of lieutenant, from the 6th day Charles F. Wood. Newton W. Parke. of December, 1920: Jason H. Barton. Robin R. Hinnant. Asst. Surg. John E. Porter to be a passed assistant surgeon William T. Gildberg. Boyce L. Brannon. in the Navy, with the rank of lieutenant, from the 6th day of MABINE COnPS. June, 1920. Maj. Alexander A. Vandegrift to be a major in the Marine Asst. Surg. William D. Small to be a passed assistant surgeon Corps from the 4th day of June, 1920, to correct the date from in the Navy, with the rank of lieutenant, from the 1st day of which he takes rank as previously nominated and confirmed. July, 1920. Maj. Fred S. N. Erskine to be a major in the Marine Co~ps Asst. Dental Surg. DeWitt C. Emerson to be a passed assistant from the 4th day of June, 1920, to correct the date from wh1ch dental surgeon in the Navy, with the rank of lieutenant, from he takes rank as previously nominated and confirmed. the 6th day of June, 1920. Maj. Roy S. Geiger to be a major in the Marine Corps from The following-named assistant paymasters to be passed as­ the 5th day of June, 1920, to correct the date from which he sistant paymasters in the Navy, with the rank of lieutenant, takes rank as previously nominated and confirmed. from the 1st day of July, 1920: Maj. Richard H. Tebbs, jr., to be a major in the l\rfarine Corps Leland S. Steeves. George M. Snead. from the 4th day of July, 1920, to correct the date from which Harry M. Mason. Daniel M. Miller. he take:; rank as previously nominated and confirmed. Lieut. Edmund D. Duckett, for temporary service, to be a M:aj. Thomas C. Turner to be a lieutenant colonel in the lieutenant in the Navy from the 3d day of August, 1920, in ac­ Marine Corps from the 14th day of July, 1921. cordance with a provision contained in the act of Congress ap­ Capt. Edward M. Reno to be a major in the Marine Corps proved June 4, 1920. from the 4th day of December, 1920. Lieut. (junior grade) Guy McLaughlin, for temporary service, to be a lieutenant (junior grade) in the Navy from the 1st day POSTMASTERS. of July, 1920, in accordance ~ith a provision contained in the ALABAMA. act of Congress approved June 4, 1920. James W. Curtis to be postmaster at Double Springs, Ala. Lieut. (junior grade) Harvey R. Bowes, United States Naval Office became presidential January 1, 1921. Reserve Force, to be a lieutenant (junior grade) in the Navy from the 1st day of July, 1920, in accordance with a :trrovision ARIZONA. contained in the act of Congress approved June 4, 1920. John Murray to be postmaster at Snowflake, Ariz. Office be· Lieut. (junior grade) Alexis 0. Kustel, for temporary service, came presidential April 1, 1921. to be an ensign in the Navy from the 6th day of June, 1919, in ARKANSAS. accordance with a pro-vision contained. in the act of Congress Frederick H. Burrow to be postmaster at Altus, Ark. Office appro-ved June 4, 1920. became presidential January 1, 1921. Ensign Fred J. Barden, for temporary service, to be an ensign William C. Allen to be postmaster at Amity, Ark., in place of in the Navy from the 6th day of June, 1919, in accordance with 1\I. l\.f. Hunter. Incumbent's commission expired January 31, a proYision contained in the act of Congress approved June 1921. 4, 1920. Robert P. Jorden to be postmaster at Womble, Ark. Office be· The following-named passed assistant dental surgeons for came presidential January 1, 1921. temporary service to be passed assistant dental surgeons in the Hugh T. Brown to be postmaster at Scott, Ark. Office became Navy with the rank of lieutenant from the 3d dfty of August, presidential October 1, 1920. 1920, in accordance with a provision contained in the act of John W. Webb to be postmaster at Mountain View, Ark. Congress approved June 4, 1920: Office became presidential October 1, 1920. Frederick W. Mitchell. Floyd F. Nichols to be postmaster at Buckner, Ark. Office be­ Charles L. Tompkins. came presidential April 1, 1921. Lieut. William M. Christie, United States Naval Reserve Force, to be a passed assistant paymaster in the Navy with the CALIFORNIA. rank of lieutenant from the 3d day of August, 1920, in accord­ Louisa A. Cobden to be postmaster at Groveland, Calif. ance with a provision contained in the act of Congress approved Office became presidential April 1, 1920. J tme 4, 1920. Edward Smith to be postmaster at Grimes, Calif. Office Asst. Paymaster Alexander Riggin, for temporary service, to became presidential January 1, 1921. be an assistant paymaster in the Navy with the rank of lieu­ William J. Mowry to be postmaster at Colma, Calif. Office tenant (junior grade) from the 1st day of July, 1920, in became presidential July 1, 1920. accordance with a provision contained in the act of Congress Christian J. Aggergaard to be postmaster at Big Creek, Calif. approved June 4, 1920. Office became presidential January 1, 1921. A. st. Naval Constructor Edward W. Rounds, United States COLORADO. Naval Reserve Force, to be an assistant naval constructor in Siegfried Salomon to be postmaster at Platteville, Colo., in the Navy with the rank of lieutenant from the :~d day of place of H. F. Bedford, resigned. August, ' 1920, in accordance with a provision contained in tbe Christopher C. Eastin to be postmaster at Kremmling, Colo., act of Congress approved June 4, 1920. in place of J. C. Irvin. Incumbent's co,mmission e~'"Pired The following-named assistant surgeons for temporary service, March 16, 1921. to be chief pharmacists in the Navy, to rank with but after Edward L. Boillot to be postmaster at Fort Morgan, Colo., ensign, from the 5th day of August, 1920, in accordance with in place of F. F. Reinert, resigned. a provision contained in the act of Congress approved June 4, Frank M. Shedd to be postmaster at Aurora, Colo., in place 1920: of C. E. Melis, resigned. Charles Schaffer. Thomas J. Murphy. Hubbard I. Boyd to be postmaster at Weldona, Colo. Office Paul V. Tuttle. Lawrence Zembsch. became presidential July 1, 1920. .James Holden. Abraham T. Schwartz. FLORIDA. H enry L. Gall. Samuel J. Seckelman. John F. Stunkel to be postmaster at Leesbm·g, Fla., in place Albert H. Benhard. Ervin C. Eastman. of G. L. Anderson. Incumbent's commission expired March 16, Roy Aikman. William M. Benton. Edwin G. Swann. Loring N ottingha.m. 1921. Corliss P. Dean. John H. Schreiter. GEORGIA. Clyde E. Snider. Joseph A. Ortolan. Robert Barron to be postmaster at Zebulon, Ga., in place of Benjamin W. Claggett. Joseph C. Gill. J. N. Mangham. Incumbent's commission expired January 31, Jeremiah Harris. Fred H. Stewart. 1921. Walter H. MacWilliams. Walter W. Wade. Henry G. Roberds to be postmaster ut Villa Rica, Ga., in place 'Villie R. Joiner. Henry ·B. Schreurs. · ofT. F. Sykes. Incumbent's commission expired July 7, 1920. Paul Hapke. Harold B. Sanford. Joe B. Saunders to 11e postmaster at Ringgold, Ga., in place of Lloyd C. Sims. Nord F. Smith. D. A. Trundle, resigned. Barry G. Danilson. Glen D. Sipe. Alice Calhoun to be postmaster at Lumber City, Ga., in place Charles Peek. Edgar L. Sleeth. of H. S. Tucker. Incumbent's commission expired August 3, Thomas A. Stareck. Rodney J. Youngkin. 1920. Carl A. Setterstrom. Roscoe C. Rowe. " Hugh C. Register to be postmaster at Hahira, Ga., in place ot Fred A. Payne. George L. Crain. B. L. Cumbus, removed. 7192 OONGRESSION AL RECORD-SENATE. NoVEMBER 2,

William H. Flanders to .be postmaster at Swainsboro, Ga., in KENTUCKY. place of G. F. Flanders. Incumbent's commission expired July David .Johnson to be postmaster at Clinton, Ky., in place ef 25, 1920. . 0. W. Jackson, resigned. · William T. Rudolph to be postmaster at Thomaston, Ga., in William H. Sergent to be postmaster at Jenkins, Ky., in place place of W. W. ~cl\fillan. Incumbent's commission expired of A. K. Bowles, jr., resigned. August 4, 1920. Anna M. Seaton to be postmaster at Buechel, Ky. Office be­ James L. ,Weaver to be postmaster at Ellijay, Ga., in place of came presidential April 1, 1921. N. L. Tankersley. Incumbent's commission expired January 31, 1921. . LOUISIANA. ·waiter R. Cannon to be postmaster at Clayton, Ga., in place Joseph D. Hebert to be postmaster at Cottonport, La., in place of W. R. Cannon. Incumbent's commission expired January 6, of U. J. Marcotte. Incumbent's commission expired January 1920. 23, 1921. James P. Pirkle to be postmaster at Hoschtob, Ga. Office be­ MAINE. came presidential January 1, 1921. Julia E. Lufkin to be- postmaster at Deer Isle, 1\Ie. Office be­ Alexander Davidson to be postmaster at Cleveland, Ga. Office came presidential July 1, 1920. became presidential July 1, 1920. MARYLAND. ILLINOIS. Lawrence 1\I. Taylor to be postmaster at Perryman, Md., in George H. Abshire to be postmaste1· at Pawnee, Ill., in place place of E. V. Cronin. Incumbent's commission expired Jan­ of E. P. Sanders. Incumbent's commission expired May 15, uary 8, 1921. 1920. MASSACHUSETTS. Albert.S. Tavenner to be postmaster at Polo, Ill., in place of Frank M. Reynolds, jr., to be postmaster at Nantasket Beach, W. T. Clopper, deceased. Mass., in place of F. M. Reynolds, jr. Incumbent's commission Clyde E. Clester to be postmaster at Loda, Ill., in place. of expired July 21, 1921. I. C. Barlow, name changed by marriage. Robert H. Lawrence to be postmaster at South Dartmouth, Lena Albers to be postmaster at Atwood, Ill., in place of A. A. Mass. Office became presidential January 1, 1921. Rose. Incumbent's commission expired April 24, 1921. David N. Wixon to be postmaster at Dennis Port, Mass. Office Frances E. Tinker to be postmaster at Stonington, ill., in place became presidential July 1, 1920. . of P. A. Dwyer. Incumbent's <.:ommission expired January 31, 1921. MICmGA.i~. William H. Burnell to bd postmaster at Springvalley, Ill., in John H. Fink to be postmaster at New Baltimore, Mich., in place of J. J. Sweeney. Incumbent's commission e:xpire

Charles L. Farrar tc be postmaster at Macon, Mo.1 in place Ray J. Fuller to be postmaster at Franb."iort, N. Y., in place of Ancil 1\Iilam. Incumbent's commission expired June 23, of J. J. Shea. Incumbent's commission expireu February 11, 1t)20. 1920. Jacob B. Marshall to be postmaster at Lawonte, Mo., in place NORTH CAROLINA. ot Antoinette Sullivan, removed. Will C. Hoffman to be postmaster at Dallas, N. C. Office be­ R.os A. Prater to be postmaster at Essex, 1\lo., in place of came presidential January 1, 1921: G. C. Meineke, re igned. Clarence L. Fisher to be postmaster at Roseboro, N. C., in MO~TANA. plB.ce of J. M. Hall. Incumbent's commission expired January Emma E. Waddell to be postmaster at Custer, Mont. Office 13, 1921. . . became pres:dential January 1, 1921. Henry T. Atkins to be postmaster at Lillington, N. C., in Fred E. Smith to be postmaster at Neihart, l\lont. Office be- place of J. N. Fuquay. Incumbent's commission expired Janu­ came presidential Januru·y 1, 1921. . ary 8, 1921. Clark R. Korthrop to be postmaster at Red Lodge, Mont., in Robert 0. Smith to be postmaster at Creedmoor, N. C., in place of John Dunn, resigned. place of E. K . .Morris. Incumbent's -commission expired 1\larch 'Villiam J. Fransham to be postmaster at Bozeman, Mont., in 16, 1921. place of N. P. Evans. Incumbent's commission expired Jan­ Jesse T. Price to be postmaster at Williamston, N. C., in place uary 5, 1920. of L. B. Wynne. Incumbent's commission expired March 4, !\"'EBR.ASKA. 1920. • August Dickenman to be postmaster at Talmage, Nebr., in Francis A. Slate to be postmaster at Gastonia, N. C., in place of August Dickenman. Incumbent's commission expired place of J. R. Rankin, resigned. February 3, 1920. NORTH DAKQTA. Isaac B. Lamborn to be postmaster at Palmyra, Nebr., in ,Jessie M. Lewis to be postmaster at Werner, N. Dak., in place place of J. F. Mahoney. Incumbent's commission expired Jan­ of J. 1\1. Robison. Name changed by marriage. uary 13, 1921. Howard A. Thomas, jr., to oo postmaster at Driscoll, N.Dak., NEW HAMPSHIRE. in place of E. C. Ruble, resigned. Lewis P. Merrill to be postmaster at West Stewartstown, John A. Halberg to be postmaster at Park River, N. Dak., in N. H. Office became presidential April 1, 1921. place of J. J. Dougherty, resigned. Delia B. Stromstad to be postmaster at Carpio, N. ·Dak., in NEW JERSEY. place of P. J. Kavanagh, resigned. 0. F. Ferree to be postmaster at ·stoneharbor, N. J., in place of W. J. Christian. Incumbent's commission expired January OHIO. 31,1921. Frank J. Reinheimer to be po.stmaster at Kelleys Island, Ohio. Walter E. Harbourt to be postmaster at Netcong, N. J., in Office became presidential April 1, 1921. place of S. P. Miller, resigned. Charles G. Bartlett to be postmaster at State Soldiers' Home, Raymond W. Losey to be postmaster at Blairstown, N. J., in Ohio, in place of C. G. Bartlett. Incumbent's commission ex· place of J. E. Blair. Incumbent's commission expired August pired July 21 1921. 26, 1920. Jesse A. Keller to be postmaster at Pleasantville, Ohio, in Joseph H. Long to be postmaster at Anglesea, N. J., in place place of R. E. Hite. Incumbent's commission expired January of H. C. Wheaton, deceased . . 13, 1921. R. NEW YORK. Lloyd Wallace to be postmaster at Mount Victory, Ohio, in place of R. L. McKim. Incumbent's commission expired January William H. Boyce to be postmaster at South New Berlin, 23, 1921. N. Y. Office became presidential January 1, 1921. Harry B. Miller to be postmaster at Rockford~ Ohio, in place John W. Fiero, jr., to be postmaster at Round Top, N. Y. of R. N. Frysinger, resigned. Office became presidential April 1, 1921. Owen Livingston to be postmaster at Richwood, Ohio, in place Alvin J. White to be postmaster at Eaton, N. Y. Office be­ of E. E. Moore. Incumbent's commission expired .July 10, 1920. came presidential January 1, 1921. Sallie E. Turner to be postmaster. at l\Iartinsville, Ohio, in Edward T. Sheffer to be postmaster at Shortsville, N. Y., in place of C. W. Turner, deceased. place of D. W. Gilligan. Incumbent's commission expited Jan- George E. Ricker to be postmaster at Holgate, Ohio, in place uary 18, 1920. · . of C. L. Ritz, resigned. E·lmer J. Conklin to be postmaster at Poughkeepsie, N1 Y., in Alton D. Whiteman to be postmaster at Greenspring, Ohio, in place of J. E. Townsend. Incumbent's commissioD: expired place of P. E. Montgomery. Incumbent's commission expired March 23, 1920. .January 18, 192(). Matthew McManus, jr., to be postmaster at Orangeburg, N. Y., Lee Heckman to be postmaster at Edon, Ohio, in place of C. V. in place of E. C. Elliott. Incumbent's commission expired Lash. Incumbent's commission expired July 21, 1921. August 8, 1920. John W. Shisler to be postmaster at Dalton, Ohio, in place of John T. Hoffinan to be postmaster at Madalin, N.Y., in place L. C. Davison, deceased. of C. B. Stickel. Incumbent's commission expired March 16, Ralph I. Wolf to be postmaster at Ooolville, Ohio, in place of 1921. H. M. Walden. Incumbent's commission expired December 20, Charles L. Dix to be postmaster at Forestville, N. Y., in 1.920. place of C. F. Record. Incumbent's commission expired March Lessa B. 1\ia.sters to be postmaster at Antwerp, Ohio, in place 22, 1920. of J. P. Eakle, removed. George F. Vreeland to be postmaster at Far Rockaway, N. Y., in place of T. A. McMahon. Incumbent's commission expired QKL.AHOMA. February 2, 1921. • Rosa B. Britton to be postmaster at Cyril, Okla. Office be­ Edward J. Monroe to be postmaster at Croghan, N. Y., in came presidential January 1, 1921. place of Edward Griment. Incumbent's commission expired Jere C. Townsend to be postmaster at McLoud, Okla., in place .July 25, 1920. of W. R. Franklin. Incumbent's commission expired January Ira B. Cooper . to be postmaster at Cato, N. Y., in place of · 2, 1.921. C. L. Harris. Incumbent's commission expired March 22, 1920. Rose Crowder to be postmaster at Krebs, Okla., in place of Halburt M. Cinnamond to be postmaster at Union, N. Y •• in E. F. Turner, resigned. · place of U. H. Merservan. Incumbent's commission expired John W. Gregory to be postmaster at Weleetka, Okla., in March 15, 1920. , place of E. S. Gray, resigned. Rosswell R. Steacy to be postmaster at Redwood, N; Y., in Lillian .M.:. Newhouse to oo postmaster at Prague, 0~., in place of L. S. Martin. Incumbent's commission expired March place of L. M. Newhouse. Incumbent's commission expired 22, 1920. .January 2, 1921. Dennis. Dillon to be postmaster at Raquette Lake, N. Y., 1n OREGON. place of Dennis Dillon. Incumbent's commission expired Janu­ H. F. Woodeock to be postmaster at Maupin, Oreg. Office ary 15, 1920. became presidential Ap1il 1, 1921. Fred N. Parquet to be postmaster at Inlet, N. Y., in place of F. N. Parquet. Incumbent's commission expired July 21, 1921. PENNSYLVANIA. Frank l\1. Bredell to be postmaster at Lockport, N. Y., in Walter C. Taylor to be postmaster at White Haven, Pa., in place of G. W. Batten. Incumbent's commission expired March place of S. S. Staples. Incumbent's rornmi.ssion expired August 15, 1921. 3, 1920. 7194 CONGRESSIONAL RECORD-SEN ATE. NOVEMBER 2,

Boyd W. Brobst to be postmaster at Shickshinny, Pa., in Charles. H. Prouty to.be postmaster at Genoa Junction, 'Vis., place of R. E. Wheatley, resigned. in place of C. H. Prouty. Incumbent's commission expired June H enry W. Redfoot to be postmaster at Fredonia, Pa., in place 29, 1920. of J. L. Infield. Incumbent's commission expired January 8, Alexander 1\I. Powers to be postmaster at Delafield, Wis., in 1921. place of C. V. Richer, resigned. Comfrey Ickes to be postmaster at Boswell, Pa., in place of Arthm· V. Carpenter to be postmaster at Crandon, Wis., in R. E. Spangler, resigned. , place of W. H. Ferguson. Incumbent's commission expired July Patrick J. Molyneaux to be postmaster at Lyndora, Pa., in 10, 1920. place of J. A. Hughes, removed. Alfred E. Redfield to be postmaster at Stevens Point, Wis., in Fred D. HeUman to be postmaster at Lebanon, Pa., in place of place of A. G. Krembs. Incumbent's commissjon· expired June 2, A. I. Hartman, deceased. 1920. PerciYal C. Fox to be postmaster at Halifax, Pa., in place of Arthur M. Howe to be postmaster at Elk Mound, \Vis., in J. C. 1\filler. Incumbent's commissio·n expired August 3, 1920. place of A. M. Howe. Incumbent's commission expired l\Iarch PORTO RICO. 16, 1921. Luis R. Garcia Casanova to be postmaster at Naguabo, P. R. Office became presidential October 1, 1920. CONFJRMATIONS. SOUTH CAROLINA. B xecutire nmninations confirmed by the Sen4te November 2 John L. Bunch to be postmaster at l\fcCdll, S. C., in place of (legislative day ot October 20), 1921. Luthet· McLaurin. Incumbent's commission expired March 19, RECEn'ER OF PUBLIC MONEYS. 1918. PC'dro Romero to be receiver of public moneys at Fort Sumner, William B. Blakeley to be postmaster at Andrews, S. C., in N. l\Iex. place of W. B. Blakeley. Incumbent's commission expired Jan­ uai·y 2, 1921. PROMOTIONS IN THE NAVY. SOUTH DAKOTA. TO BE COMMANDERS. l\lary S. Reed to be postmaster at "\Vasta, S. Dak. Office b~ Charles H. Bullock. Abram Claude. came presidential January 1, 1921. Nathan W. Post. Herbert H. 1\Iicbael. Cecil L. Adams to be postmaster at Frankfort, S. Dak., in Roscoe F. Dillen. Max 1\1. Frucht. place of L. K. Harris. Incumbent's commission expired July" 7, Albert T. Church. Reuben B. Coffey. 1920. William S. McClintic. Arthur C. Stott. TEXAS. William Ancrum. Robert L. Irvine. Robert W. Kessler. Arthur B. Cook. Thomas J. Darling to be postmaster at Temple, Tex., in Halsey Powell. place of Alex Dienst, removed. Will C. Easterling to be postmaster at Ozona, Tex., in place TO BE LIEUTENANT COMMANDERS. of N. ,V. Graham, resigned. Paul J. Peyton. Sherman S. Kennedy. Lucy Breen to be postmaster at Mineola, Tex., in place of William W. Smith. Daniel A. McElduff. D. S. Lankford. Incumbent's commission expired December 6, David I. Hedrick. Alan G. Kirk. 1919. Stephen B. 1\~cKinney. Tracy L. McCauley. Charlie B. Starke to be postmaster at Holland, Tex., in place Olaf M. Hustvedt. Max B. DeMott. of :K. B. Vernon. Incumbent's commission expired March 16, Alva D. Bernhard. Lee P. Johnson. 1921. . Harold C. Train. George K. Stoddard. Matilda Akeson to be postmaster at Hale Center, Tex., in Radford Moses. place of A. 1\I. Shepard. Incumbent's commission expired Janu­ TO BE LIEUTENANTS. ary 19, 1921. Louis J. Roth. Newton R. George. \Villiam C. Young to be postmaster at Garrison, Tex., in place Roswell H. Blair. Jonathan H. Warman. of W. C. Young. Incumbent's commission expired August 26, Henry 1\I. Mullinnix. Joseph W. Bettens. 1920. Webster M. Thompson. Henry W. Stratton. Walter s. Yates to be postmaster at Fm;ney, Tex., in place of Walter W. Webb. Frederick G. Keyes. B. C. Edwards, resigned. Knefler McGinnis. John Meyer. Frank Farrington to be postmaster at Diboll, Tex., in place Ellis H. Geiselman. Horace DeB. Dougherty. of Frank Farrington. Incumbent's commission expired Janu- Vernon F. Grant. Joseph A. Rasmussen. ary 8, 1921. . Howard F. Councill. Warner K. Bigger. John 0. Holmes to be postmaster at Panhandle, Tex., in place John J. Ballentine. Charles Antrobus. of B. L. Rorex, resigned. Francis B. ConnelL Arthur T. Brill. UTAH. Alphonsus I. Flynn. John C. Heck. M. L. Harrison to be postmaster at Castlegate, Utah, in place Carlos W. Wieber. James L. 1\IcKenna. of C. H. Nelson, resigned. Christopher Murray. Frank E. Nelson. William R. Gardner. Philip S. Flint. WASHINGTON. Bertram David. Frank F. Webster. Gordon C. Moores to be postmaster at Kennewick, Wash., in Richard 0. Williams. Charles King. place of Averill Beavers. Incumbent's commission expired De­ Arthure Langfield. Quintus R. Thompson, jr. cember 20, 1920. John Roman. William R. Spear. WEST VIRGINIA. Meade H. Eldridg~. Melvin C. Kent. J e e D. Day to be postmaster at Ashland, W. Va. Office • Ernest R. Peircey. .Anthony Prastka. became presidential July 1, 1921. William R. Buechner. Joseph W. Birk. Gerard D. Moore to be postmaster at Ranson, W. Va. Office Edward C. Wurster. Raymond A. ·walker. became presidential July 1, 1921. Arthur B. Dorsey. Ola D. Butler. Frederick E. Bletner to be postmaster at Mason, W. Va. Arthur D. Freshman. Clyde H. McLellon. Office became presidential January 1, 1921. Gustav C. Tanske. Lee w. Drisco. John F. Lusk to be postmaster at Itmann, W. Va. Office Charles W. A. CampbelL William S. Holloway. became presidential July 1, 1921. Charles .A.. .Armstrong. Harry 1\1. Dicker on. William H. Young to be postmaster at Union, W. Va., in James S. Trayer. Louis H. Ra Ier. William A. Tatter all. pla c ~ of E. H. Shanklin. Incumbent's commission expired Jan­ Gregoire F. J. Labelle. uary 9, 1921. Henry Hartley. Arthur C. Leonard. J ..J erome Haddox to be postmaster at Barboursville, W. Va., Peter J. Gtmdlach. Herbert Wycberly. in place of J. W. Wilson, deceased. Albert l\1. Hinman. Grover A. Miller. Laura Y. Conner to be postmaster at Harp.ers Ferry, W.Va., in William .Cox. Marion C. Erwin. place of T. l\1. Conner, deceased. Stephen .A.. Loftus. Haden H. Phare~ . Herman C. Schrader. Lester M. Harvey. WISCONSIN. Herbert R. :Mytinger. William B. Anderson. Fred B. Rhyner to be postmaster at 1.\-farshfield, Wis., in place Harold A. Turner. I Frederick A. nuf. of .A. G. Pankow, resigned. Curry E. Eason. Harry Le R. Tllon 1 p ~ n. Lila 0. Burton to be postmaster at Eagle, Wis., in place of Brice H. Mack. Leslie K. Orr. C. L. Shearer, resigned. Herbert J. Meneratti. John F. Warri . 1921. CONGRESSIONAL RECORD-SENATE. 7195

Niels Drustrup. Walker P. Rodman. Ellis H. Geiselman. Fred A. Hardesty. Auraham De Somer. Joseph B. Anderson. Carlos W. Wieber. Lloyd S. Kinnear. Robert C. McClure. Albert M. Austin. Alfred P. Moran, jr. Frank E. Vensel, jr. William A. Mason. Lyman C. Avery. John H. Cassady. Arthur E. Anderson. John F. Murphy. John B. Barrett. Jarrard E. Jones. Charles S. Seely. Clarence R. Rockwell. Rico Botta. George R. Veed. George Paille. Paul E. Kuter. Harold J. Brow. John J. Clausey. John P. Hildman. William E. Snyder. Charles B. Burke. Ralph G. Moody. Truman E. Ayres. Simon L. Shade. Paul W. Carter. Frederick Petry. William E. Phillips. Albert E. Freed. Thomas l\1. Colston, jr. William F. Schlegel. Raymom! G. Deewall. • Harry J. Hansen. George L. Compo. Sol Shaw. John Q. Chapman. Newcomb L. Damon. Byron J. Connell. Asa Van Roerfnud Watson. Earl B. Brix. John J. Madden. Andrew Crinkley. Wilmer W. Weber. Perle M. Lunll. Clyde LoYelace. Fred C. Dickey. John A. Rogers. Perry F. Newton. Martin Dickinson. Harold A. Elliott. Ludwig W. Gumz. Charles l\1. Johnson. William H. Farrel. Frank C. Fake. Arthnr H. Cummings. Henry L. Pitts. John Whalen. William 1\I. Fellers. Raymond C. McDuffie. Charles F. Waters. George S. Dean. Francis E. Fitch. Henry A. Stuart. Edward J. Lysaught. Charles F. Fielding. Robert L. Fuller. Alexander B. Holman. Percy A. Decker. Aaron Eldridge. Arthur Gavin. William .T. Graham. Cornelius .T. O'Connor. Judson E. Scott. Adolphus W. Gorton. Walter B. Buchanan. Edward' B. Peterson. Edward L. Newell. Thomas A. Gray. . Joseph W. Storm. Charles R. Jeffs. Robert B. England. Lambert Hc"'itt. Edwin F. Bilson. DeForest L. Trautman. Lars 0. Peterson. Arthur R. Houghton. Otto H. H. Strack. Caleb R. Crandall. Omar B. Eade. Lester 1.'. Hundt. Oric H. SmalL Walter E. Andrews. Edwin Fisher. Rutledge Irvine. Clyde Morrison. Wellington S. Morse. George R. Blauwlt. Hiram L. Irwin. Elmer B. Robinson. Frank E. Kennedy. Earl V. Hand. Theodore C. Lonnquest. Elijah E. Tompkins. James E. Arnold. Charles Waters. Rossmore D. Lyon. Doile Greenwell. Raymond E. Farnsworth. John R. McKean. H,obert P. AcConnell. Arthur L. Karns. Frank A. Mullen. Harold A. Clough. Francis R. l\lcDonnell. Homer E. Curlee. John E. Ding-well. Thomas W. Mather. Samuel B. l\Icl\Iurrain. Carl H. Forth. Norman E. l\Iillar. Chester L. Nichols. Ralph II. Norris. Robert N. Lockart. Leslie E. Gehres. Thomas 1\I. Leovy. Telford B. Null. Marcus L. Kurtz. Lewis H. C. Johnson. Harold F. Fultz. George T. Owen. John F. W. Gray. Louis P. Harris. Benjamin W. Cloud, 2d. William K. Patterson. Ratcliffe C. Welles. Raymond E. Daniels. Mallery K. Aiken. Loverne A. Pope. Homer B. Davis. Guy R. Bostain. Frederick S. Conner. Alfred M. Pride. Edwin Nelson. Leo L. Waite. Howard W. Kitchin. Charles H. Ramsdell. James l\L Connally. Lawrence S. Tichenor. Leland D. Webb. Francis W. Reichelderfer. PerciYal W. Buzby. Joseph R. Tobin. William Knox. Herbert C. Rodd. Vernon C. Bixby. Hermann P. Knickerbocker. Clyde C. Laws. William H. Rohrbach. Arthur E. Bartlett. Arthur F. Peterson. .Roy l\1. Cottrell. John l\f. Sheehan. Harold .T. Wright. .Tames N. l\lcTwiggan. Thomas E. Flaherty. Frank H. Sloman. Burmain A. Grimball. Frederick W. Ickes. Walter C. Theimer. Allen P. Snody. Alfred J. Byrholdt. Edward G. Nolan. Athur R. Pontow. Henry T. Stanley. Oliver H. Briggs. Scott E. feck. Learned L. Dean. John Stanley. Carl Hupp. Charles F. Grisham. Harry R. Hayes. James H. SteYens. Charles A. Goebel. .T ohn H. Thomas. 1\Ierwin W. Arps. Charles D. Williams, jr. Stonewall B. Stadtler. William Hartenstein. Jerome L. Allen. William L. Wright;, Homer F. McGee. Elwood H. Barkelew. Eugene L. Richard OQ. John B. W. Wallet·. Stephen E. Haddon. Emil Chourre. Albert R. 1\Iyers. George R. Fairlarnb, jr. Lansford F. Kengle. l\lerritt P. Higgins. Charles P. Porter. Julian D. Wilson. Frank A. Brandecker. George A. Ott. TO BE ASSISTANT NAVAL CONSTRUCTORS WITH RANK OF LIEUTENANT. Arthur Wrightson. ·william L. Peterson. Thomas E. Renaker. Frederick B. Britt. Robert B. Pick. Edward H. Smith. John A. Price. Harold K. Smoot. Carl A. Scott. Clarence W. Chaddock. Thomas D. Southworth. Reuben R. Clarke. James P. Shovlin. William E. McClendon. William A. Sullivan. Laurence E. 1\Iyers. Troy N. Thweatt. Charles W. Colby. Raymond F. Tyler. Joel A. Davis. Peter Treutlein. Robert S. Smith, jr. Benjamin S. Wells. Henry C. Flanagan. Paul C. 'Varner. Herbert Duthie. Herbert A. Anderson. Tony L. Hannah. Ralph S. Barnaby. William Y. Rorer. Clem H. Congdon. George E. Ernest. Dean Blanchard. John H. Jack, jr. Steven W. Callaway. Charles N. Liqued. WalterS. Diehl. Will F. Roseman. Carl B. Harper. Jesse G. McFarland. Harry F. Carlson. Irving B. McDaniel. Donald G. DaYis. James G.l\IcPherson. Harold Larner. J olm P. Dix. John W. Lerew. llobert E. DaYenport. Albert E. Dupuy. Albert G. Mer:rill. James E. Dyer. Robert Morgan. Raymond D.l\1acCart. William Wakefield. James D. Barner. Volney C. Finch. Thomas F. O'Brien. Charles J. McCarthy. John 'J. Fitzgerald. George T. Paine. Theodore P. Wright. Clyde L. Lewis. Frederick 0. Goldsmith. Maxwell B. Saben. TO BE ASSISTANT NAYAL CONSTRUCTORS WITH RANK OF LIEUTENANT Thomas D. Guinn. Howard R. Shaw. (JUNIOR GRADE) • Robert H. Harrell. 'V illiam J. Slattery. Noah W. Gokey. George V. 'Vhittle. James H. Hulse. Arthur C. Smith. William W. Hastings. Charles Hibbanl. l\Ialcolm R. Jameson. Barrett Studley. George W. Henderson. Cornelius V. S. Knox. Daniel H. Kane. Grover B. Turner. Joseph l\1. Kiernan. Virgil V.l\IcKenna. Charles A. Kirtley. Frank R. Whitmore. Roland G.l\Iayer. Wendell P. Roop. · Harry J. Lang. Louis T. Young. William Neidert. Karl Schmidt. Thomas B. Lee. John l\IcC. Fitz-Simons. ~ Gerald W. Thomson. Walter C. Wilson. William B. Lobaugh Thomas G. W. Settle. TO BE LIEUTENANTS (JUNIOR GRADE) . DonaJd J. 1\IacCalman. Hubert H. Anderson. Vernon F. Grant. Palmer 1\f. Gunnell. Donald MeA. l\iackey. Everett D. Kern. Ho,vard F. Councill. Robert F. 1\lacNally. DaYi

TO BE PASSED ASSISTANT SURGEONS. Abram L. Broughton. Leon W. Mills. Hampden A. Burke. Jules 1\lagnette. jr. Frnnk V. Shepard. Philip D. Butler. John B. O'Neil. Edward J. Goouhocly. Clar{'nce E. Williams. Eclwanl Dal'li.el;on. ~rthur S. Judy. John G. Smitl1. JnBJ<.'." H. Oai11. Andrew Simmo:u.s. lVarwick T. Brown. Howell C. Johnston. Fleet \V. Corwin. Emmett J. Driscoll Gerald Selby. Charles G. TerrelL A rtlmr C. Hoyt. .James H. Woodwnrd. Victor H. Shields. H :u-ry F. Gray. Joseph L. Ca sidy. Maurice M. Rodgers. Ira \V. Truitt. TO BE PASSED ASSISTANT PAYMASTERS. William Klaus. Franklin E. Cook. Homer C. Sowell. Allen H. White. John F. Kennedy. Myron T. Grubham. Percy C. Corning. Alfred B. Clark. Frank I. Hart. Frank W. Rasch. James C. Bequette. Samuel B. Drhl, jr. Alvin Henderson. Charles W. Van Horn. James R. Frawley. Horace D. Nuix·r. John F. P. ·1\liller. Gorney E. Patton. Charles L. Austin. John N. Harriman. Harold F. l\1acHugh. Edward J. Spuhler. Blai~ Hunter. Albert R. Colwell. Donald B. McClary. TO BE PASSED ASSISTfANT DENTAL SURGEO S. J eremiah K. Cronin. Alva Henderson. Theodore P. Donahoe. Harold A. Badger. Kenneth F. Horne. Albert J. Wheaton. John E. Herlihy. Robert 1\1. Askin. Walter C. Hai~ht. Arthur Brown. George C. Fowler. Louis B. Lippman. John Sbarpe. Philip L. Emerson. Sidney 1\1. Akerstro!Th Walter Rehrauer. Raymond •. Kaiser. Warren R. Hastings. Robert S. Davis. Francis J. Long. Loar 1\iansbach. John B. McGovern. Frank Schlapp. Eli B. Parsons. TO BE PAY DIRECTORS. Bruce l\1. Parmenter. Elmer J. T iernan. Joseph Fyffe. George Brown, jr. Walter 1\I. Blumenkr:.mz. Walter W. Miller. Timothy S. O'Leary. Robert H. Wood s. William J. Ru sell. Julius C. Kinsky. John H. Merriam. Arthm li'. Huntington. Robert Anderson. · Lawrence K. Beaver. TO BE PAY INSPECTORS. James F. Cooper. Benjamin S. Brown. William P. Turner. Ignatius T. Hagner. Chester G. 1\fayo. John 0. Jenkins. Oliver P. Kilmer. Earle C. Peterson. Emmett C. Gudger. William C. Fite. Laurie C. Parfitt. Francis E. Matthews. TO BE CHIEF PAY CLERKS. Clarence A. Hawkins. Joseph W. McColl, jrp Willard B. Hinckley. Roy L. DaY i!:! . Alfred R. Boileau. Paul L. Hughes. Wayne Prather. Edward L. Ducker. Eldred J. Richards. Philip H. Taft. John T. Alexander. George A. Gast. Ira B. Spoonmore. Thomas B. Richey to be naval consti:uctor. Arthur _P. Spencer. Charles R. Hoffecker. Eugene H. Tennent to be dental surgeon. William J. Poland. Henry L. Burmann. Charles J. Lanier to be assistant paymaster. Thomas Fertner. John S. Hawkins. Earl \V. Foster to be chaplain. Emil H. Petri. Charlie S. East. Carter E. Parker. Reuben F. Davis. TO BE ENSIGNS. Harli~ H. Brown. William C. Betzer. Paul R. Fox. Godfrey P. Sclmrz. Harold Bye. Walter E. Stephen. Franz J. M. Parduhn. Frank Schultz. Mauritz l\f. Nelson. 'harles H. Gordon. James A. Martin. Daniel F. ~luh·ihill . Joe S. Wierzbowski. Thomas J. Eggleston. William E. O'Connell. August Logan. George H. Turner. .T ohn E. Canoo e. Edward S. Tucker. David F. 1\Iead. Carl I. Ostrom. Hudolph Oeser. George J . Lovett. • Arthur Boquett. Emil Roeller. Theron S. Hare. Orrin R. Hewitt. George W. \Yaldo. Percy S. Hogarth. William 1\I. McDade. Louis F. 1\liller. Charles C. Stotz. Jesse 1.\f. Acuff~ Hobert H. Barnes. Gre-gory Cullen. Sigmrt ThompRon. William E. Smith. .T ohn C. Redman. Thomas l\facklin. Paxton Hotc:Wdss. John l\1. 1\Ionison. Frank R. 'Vilis. Michael Macdonald. Norman 1\IcL. ~lcDonald. Edward G. E•ans. Ewell K. Jett. George D. Samon ki. William T. Shaw. Walter E. Holden. Eugene Bastian. Bernhard Schumacher. \\illiam S. E1ans. Grover C. Watkins. · Rudolph P. Bielka . Ernest Heilmann. .Tames D. BrmYn. Frederick Strohte. William R. Dolan. John B. Hnpp. John P. Millon. Olaf J. Gullickson. Maxernillian B. De Leshe. Harry E. SteYens. Alfred Doucet. Stuart L. Johnson. Thomas 0. Brandon. David P. Henderson. .James Donaldson. . Gilbert R. Whitworth . James n.. Harrison. Harry A. Pinkerton. James l\1. 1\lacDonnell. David R. Knape. Jacob E. DeGarmo. Herman Kossler. William A. Eaton. Brady J. Dayton. John W. Dillinder. 'John Mcl\1. D. Knowles. DaYid McWhorter, jr. John L. Graham. Roger K. Hod don. Robert G. Greenleaf. Ewrest A. Whited. Arthur D. Murray. Alfred G. Scott. Ernest W. Dobie. Samuel E. Lee. John G. Oro s. Edgar V. Carrithers. Ste11hen H. Bad;;ett. Elery A. Zehner. Thomas T. Hassell. Howard L. Clark. Walter l\1. ShiplE>y. Frank Kinne. John J. Gaskin. Rodney H . Dobson. Ciyde Keene. George T. Campbell. Thomas P. Kane. Terence W. Greene. l\1ichael J. Conlon. Rony Snyder. Ralph l\f. Gerth. William N. Thornton. ·william D. Dado. Frank Kerr. Joseph A. Clark. Lannis A. Parker. llmton W. Lambert. Claude B. Arney. William A. Lynch. Erne t V. Abrams. Clarence L. Tibbals. Elmer J. lUcCiuen. Charles L. Allen. Jo.hn E. Walrath. Freder:ck T. Walling. Stockard R. Hickey. Burton E. Rokes. John A. Paulson. William l\1artin. Harry A. l\1ew haw. Lloyd K. Cleveland. Merritt A. Bittinger. Fra11cis P. Brewer. Chris Halverson. Donald R. Comstock. Albert R. Buehler. Warwick M. Tin ley. 'l'hom H. William. on. Raymond St. C. Beckel. William B. Coleman. John F. Piotrowski. Hubert K. Stubbs. Arthur ,V. Bates. Thomas F. Hayes. George 0. Farn worth. Benjamin J. Shinn. Harold F. Hale. Elder P. Johnson. ·william K. Johnstone. Theodore A. Kelly. Andrew l\1. Parks. Herbert Loewy. Ralph .A. Scott. George H. Toepfer. Andrew 1\f. Harvey. Benjamin C. Purrington. Ernrnette F. Gumm. Joseph A. Ouellet. Stanely H. Southwell. Irving B. Smith. Robert S. Savin. Howard Hayne . Martin Nyburg. Robert F. Stockin. Clarence H. Fogg. Wiley B. Jones. Ove P. 0. Hansen. Haskell C. Todd. George B. Evans. Claude Farmer. Edgar C. Suratt. Joseph P. Tomelty. Thomas Southall. Harry A. Wentworth. Ashton B. Smith. Harold J. Walker. Joseph A. Flynn. Harley E. Barrows. George Walker. Florentin P. Wencker. Thomas G. Shanahan. Frederick .T. Sihernail. Frederick A. Smith. Arthur H. Small. George C. Neilson. Charles F. Hudson. Wallace H. Gregg. Thomas C. Kizer. 1921. CONGRESSIONAL RECORD-SENATE. 7197

li1ton P. Wilson. Charles D. Hickox. Hayden Crocker. Mathew J. WoesSRe\'. James P. l\IcCarthy. Ralph W. Bowers. George W. Dalton. William P. Wood. George L. Bright. James H. Foskett. Edward E. Dolecek. August V. Zaccor. Cha rles R. Price. Harry D. Goldy. Benjamin B. Dowell Dolph C. Allen. ./ William G. D ow. Malcolm D. MacGregor. Thomas Durfee. Gordon 1\f. Boyes. Thomas J. Bay. Anton L. Mare. Charles c: Earle, jr. Lawrence W. Brown. John P. Bowling. James .T. McGlynn. Ralph P. Evans. Paul Carle. Harold B. Herty. Frank Miller. Sheridan B. Fry. Glenn F. DeGrave. Edgar L. Adams. John D. Murphy. William S. Grooch. Lloyd A. Dillon. Albert Mel. Wright. LeRoy A. Nelson. Phil L. Haynes. Vincent W. Grady. Samuel S. Fried. Robert E. Permut. Clarence L. Hayward. Dorris D. Gurley. Paui L. Mather. Joseph H. Seyfried. Herman B. R. Jorgensen. Sa.tolli W. Hanns. Herbert H. Taylor. William L. Travis. Edward A. Keddie. William A. Hardy. Floyd J. Nuber. Donald McK. Weld. Campbell Keene. William H. Healey. Leedom B. Andrews. Cyril E. Taylor. Nolan l\f. Kindell. VV'allace B. Hollingswvrth. Charles H. Ross. Irvin M. Hansen. Robert F. Lyon. Arley S. Johnson. Ralph W. Floody. Floyd Gills. Mark A. Mangan. Samuel E. Kenney. Charles H. Miller. Louis C. De Rochemont. John L. Murphy. Roy S. Knox. Edwin C. Millhouse. Harold B. Corwin. Oscar L. Ostin. Daniel N. Logan. George K. G. Reilly. Edward R. J. Griffin. Carlton D. Palmer. Thomas 0. McCarthy. Charles R. Will. John A. Pierson. Joseph E. Shaw. Angus G. Nicolson. Leon G. DeBrohun. Albert L. Prosser.· Edgar W. Sheppard. Francis A. Packer. Joseph A. Guard. Joseph S. Donnell, jr. Charles G. Shone. Stanley F. Patten. Paul G. \Vrenn. Hyman L. Heller. Paul E. Shumway. John A. Pennington. Walter F. Hinckley. William L. Hickey. Giochino Varini. Herbert V. Perron. Glenn S. Holman. Emanuel Taylor. William J. Wal:Ker. Joseph G. Pomeroy. Clarence L. Waters. Alexander M. McMahon. Richard F. Whitehead. Robert C. Rasche. Ralph L. Lovejoy. Karl Sommerfeld. Alford J. Williams, jr. Thomas G. Richards. Myron T. Richardson. Laurence Bennett. Herman P. Althaus. Cyril A. Rumble. Robert K. Madsen, jr. Harold J. Bellingham. Adolph H. Bamberger, Edwin G. Scott. James S. Warner. Albert M. Van Eaton. Earl B. Bark. Jack H. Shafer. Paul G. Haas. John E. Gabrielson. Clarence E. Bence. Donald S. Thompson. Lynn G. Bricker. George C. Weldin. Samuel F. Boyd. Castle J. Voris. James C. Taylor. Walter 0. Roenlcke. Walter A. Brooke. Roland E. Waller. Harold W. Alden. Nelson H. Eisenhardt. William N. Crofford. Francis B. Waterman. \Villiam M. M. Lobrano. Sumner C. Cheever. Oscar R. Doerr. John G. Winn. Harold C. Patterson. Harold H. Kendrick. Stephen H. Harrison. Gail P. H elgeson. J olm A. Sedgwick. Albert E. Conlon. _George H. Hasselmann. Jackson R. Tate. Charles G. Milier. POSTMASTERS. Arthur W. Peterson. Alfred L. Lind. Roy A. Ibach. John L. Alb ire. .ALABAMA.. Lawrence F. Blodgett. Joseph E. Jackson. Tracy W. Bass, Butler. David A. Peterson. Meinrad A. Schur. Skipwith C. Taylor, Calvert. Clarence H. Pike. Forrest A. Rhoads. Effie Jordan, Chatom. Ralph H. Smith. Bernard J. Loughman. Julius E. Smith, Corona. Alan F. Winslow. William W. Behrens. Samuel F. Rickman, Ethelsville. Howard W. Bradbury. Lewis B. McDowell. H enry A. Cross, Falco. George E. Twining. Russell C. Bartman. Florence H. Furr, Fulton. Russell D. Bell. Bernhard H. \Volter. Ella L. Rentz, Gilbertown. Charles C. Ferrenz. Kenneth C. Manning. William F. Barnard, Gordo. James S. Haughey. Raymond A. McClellan. Benjamin R. Alison, Minter. Joseph W. Mullally. George D. Birdsall. Samuel D. Buck, Uniontown. Henry L. Naff. Leon J. Benwell. COLORADO. James B. Bliss. Harold R. Holcomb. Edgar 0. Buckley, Crook. Clyde A. Coggins. Harold J. Kircher. Lewis E. Walborn, Fitzsimons (late Bunell). Robert W. Boughter. Nullet F. Schneider. Lewis M. Markham, Lamar. Sidney L. Huff. Gordon T. Hou e. John H. Cunningham, Loveland. Otto F. Johanns. Jesse G. Johnson. Chester L. Snyder, New Raymer. George E. Kenyon. James D. Veatch. M. Gladys Pugh, Stratton. Harry Re·dfern. Joseph J. Rochefort. James S. Grisham, Trinidad. Hugo F. Sasse. Samuel Gregory. John F. Wegfortb. Andrew Radowicz. HAWAII, Carl E. Wieneke. William J. l\1edusky. Maria Silva, Eleele. Benton B. Baker. Ralph P. Noisat. John Lennox, Ewa. Frederick L. Farrell. Cecil E. Godkin. William I. Wells, Haiku. James 1\f. Fernald. Arthur S. Billings. Antone Silva, Hawi. Benjamin S. Henderson. Herbert C. Behner. Manuel S. Botelho, Honokaa. Maurice A. O'Connor. Roland E. Krause. Walter D. Ackerman, Kealakekua. Clifford B. Schiano. John H. Hykes. Benjamin D. Baldwin, Makaweli. Frank A. Davis. George C. Hern. James Campsie, Pahala. Joseph H. Gowan. Edwin G. Into. Edward J. Weight, Papaikou. Turner A. Glascock. Stanley A. Jones. INDIANA. Homer N. Wilkinson. Harold Kaminski. Nellie C. King, Larwill. Steadham Acker. Leo J. Kelly. KANSAS. Ralph B. Auerswald. Francis S. Kosack~ Charles E. Bauch. Albert C. Lake. Solomon L. Crown, Agra. John E. Beck. Joseph W. Long. MICIDGAN• Frederick H. Becker. .Lawron H. Lovelace. George D. Mason, Montague. Winthrop E. Blackwell Harold J. McNulty. Fred E. Heath, Plainwell Lester G. Bock. Samuel J. Pattison. George A. Cahill, jr. . Emil Pohli. NEllRASKA... George C. Cannon. Richard A. Whitaker. Diedrich H. Kirschner, Bennington. Caleb J. Coatsworth. Rintoul T. '\Vhitney. Charles Anderson, Ceresco. · Delbert L. Conley. Earl B. Wilkins. Catherine M. Coleman, Greenwood. L:S:I---453 7198 CONGRESSIONAL RECORD-HOUSE. NOVE1\IBER 2,

Mamie E. Lindeman, Milford. Mr. 1\!0NDELL. What is the nature of the proposed legis­ Lyda E. Borne, Union. lation? Murry K. Holley, Waverly. Mr. CO!-."'NALLY of Texas. It puts the jurisdiction of cer­ NEW YORK. tain bancos or islands acquired from Mexico by treaty on Rennie T. Dayton, Center Moriches. account of the shifting of the river under the jurisdiction of May C. Force. Chestertown. Texas so that they can exercise police power. The Committee Frederick W. Ashenhurst, Little Falls. on the Public Lands, as I am informed, does not care to handle Frank E. Dickens, Middleville. the legislation, and on account of its growing out of a treaty Chester T. Backus, Morris. with Mexico, it is thought proper to refer it to the Committee James Kilby, Nyack. on Foreign Affairs. Lottie Allen, Perrysburg. The SPEAKER. Is there objection? Robert Murray, Warrensburg. 1\:Ir. WALSH. Reserving the right to object, are these islands inhabited? OHIO. Effie L. Moore, Cle\es. Mr. CONNALLY of Texas. I am not advised as to whether Samuel E. Denison, Hubbard. all of them are or not. The difficulty about the situation arises from the fact that under the act of 1870 fixing the boundaries Carl "\V. Appel, Lucasville. of the United States-- Godfrey Gesen, Massillon. Martha J. Jennings, McClure. 1\ir. l\IONDELL. Will the gentleman withhold his request until 've can make further inquiries? Samuel F. Davis, Mendon. Mr. CONNALLY of Texas. I will. Henry F. Longenecker, Rittman. OKLAHOMA. EXTENSION OF REMARKS. Coral B. Waldie, Dear Creek. 1\lr. LARSEN of Georgia. Mr. Speaker, I ask unanimous con­ John L. Coyle, Rush Springs. sent to extend my remarks in the RECoRD by inserting a resolu­ PORTO RICO. tion passed regarding the proposed constitutional amendment in reference to sectarian appropriations. Juan Aparicio Rivera, Adjuntas. The SPEAKER. The gentleman from Georgia asks unani­ C. Torrens de Arrillaga, Anasco. mous consent to extend his remarks in the RECORD for the ·pur­ Florencio Salinas, Arroyo. pose indicated. Is there objection? Alfredo Font Irizarry, Cabo Rojo. Mr. WALSH. Who passed the resolution? Ramona Quinones, Catano. Mr. LARSEN of Georgia. It was passed by a church. Julio Ramos, Cayey. 1\lr. WALSH. Those resolutions are ordinarily dropped in the Eduvigis de la Rosa, Isabela. basket. Angel Fernandez Colon, Juana Diaz. Mr. LARSEN of Georgia. I do not care how it is done so long Jose L. Ortiz, Lajas. as it is printed in the REcoRD. Cesar Baez Cnbrera, Sabana Grande. 1\Ir. WALSH. Well, the gentleman has attempted very strenu­ Francisco Valldejuli, Yabucoa. ous1y to have it printed in the RECORD, and I as strenuously SOUTH CAROLINA. object. [Laughter.] Be sie P. Lamb, Enoree. CALENDAR WEDNESDAY. Hattie J. Peeples, Varnville. The SPEAKER. Objection is made. This is Calendar Wednes­ VERMONT. day, and the Clerk will call the committees. Carl W . Cameron, White River Junction. When the Committee on Territories was called: WEST VIRGINIA. Mr. CURRY. l\1r. Speaker, I ask unanimous consent that "\Yilliam M. Chambers, Maben. the bill H. R. 8442, known as the Hawaiian rehabilitation bill, Joseph C. Kleiman, Tralee. be laid on the table, as it is identical with the Senate bill 1881, which has been enacted into law. Mr. STAFFORD. May I ask whether the Senate bill has been reported to the House? HOUSE OF REPRESENTATIVES. Mr. CURRY. The Senate bill was reported to the House, referred to the Committee on the Territories, and reported back WEDNESDAY, November 2, 1921. from that committee, passed the House. and sent to the Senate, The House met at 12 o'clock noon. and the commi sion has been appointed. The Chaplain, Rev. James Shera Montgomery, D. D., offered Mr. STAFFORD. The gentleman is referring to the Brazilian the following prayer : exposition matter for which there was a paid lobby around the House? Almighty God always encourage us to believe that the founda­ Mr. CURRY. No; Jam referring to the Hawaiian rehabilita­ tion of the Lord standeth sur.e and hence nothing finally wrong tion bill. ~an happen, but 0 keep us back from presumptuous sins. We The SPEAKER. Is there objection to the request of the gen­ hope-we trust-that Thou art carrying forward the better tleman from California? processes of our lives. God is good, and to this infinite tr~th There was no objection. let our spirits cling. Continue to teach .us that a worthy life Mr. CURRY. Mr. Speaker, I moved to lay the wrong bill on is founded on pure thought, clean speech, and a resolute sense the table. I move to reconsider the vote whereby the bill of right. These and these alone lead to better things. 0 H. R. 8442 was laid on the table. heavenly Father help us on this way, we beseech Thee. The SPEAKER. The gentleman from California mo,es to re­ Through Jesus Christ, our Lord. Amen. consider the vote whereby the bill was laid on the table. Is 'I' he Journal of the proceedings of yesterday was read and there objection? approved. There was no objection. E:'rTENSION OF REMARKS. Mr. CURRY. Mr. Speaker, I move that the bill H. R. 7257, Mr. KELLY of Pennsylvania. Mr. Speaker, I ask unanimous the Hawaiian rehabilitation act, be laid on the table. consent to extend my remarks in the RECORD by printing an The SPEAKER. The gentleman nsks unnnimous consent to address on the life of the late Senator P. C. KNox, made by a lay the bill H. R. 7257 on the table. Is there objection? former Member of this House, Hon. James Francis Burke, There was no objection. before the Allegheny Bar Association. Mr. CURRY. Now, Mr. Speaker, I call up the bill H. R. 8442. The SPEAKER. The gentleman from Pennsylvania asks to amend an act entitled "An act to authorize the. Presitlent of unanimous consent to extend his remarks in the REcORD in the the United States to locate, construct, and operate railroads in manner indicated. Is there objection? the Territory of Alaska, and for other purposes," approved There was no objection. March 12, 1914, as amended. The SPEAKER. This bill is on the Union Calendar. The REREFERENCE OF A BILL. House will automatically resolve itself into Committe~ of the 1\lr CONNALLY of Texas. Mr. Speaker, I ask unanimous Whole House on the state of the Union. cons~nt that the bill S. 2133, referred to the Committee on Accordingly, the House resolved itself into Committee of the the Public Lands, be rereferred to the Committee on ~oreign Whole House on the state of the Union, with Mr. TowNER in the Affairs. I have talked with the chairman of the Commtttee on chair. the Public Lands, and it is agreeable to him. The CHAIRMAN. The Clerk will report the .bill.