15076 CONGRESSIONAL RECORD-SENATE SEPTEMBER -19 2376. By the SPEAKER: Petition of Mr. CALL OF THE ROLL of the General Assembly of the United Walter C. Peterson, clerk, Los Angeles, Calif., Mr. McFARLAND. I suggest the ab Nations . . petitioning consideration of his resolution The VICE PRESIDENT. A quorum is with reference to urging the Senators and sence of a quorum. Representatives from California, wholly or The VICE PRESIDENT. The Secre preseµt. partially representing districts in the city of tary will call the roll. TRANSACTION OF ROUTINE BUSINESS Los Angeles, to support the recommendations The roll was called, and the following Mr. McFARLAND. Mr. President, I of the President and comply with his request Senators answered to their names: for an immediate additional appropriation ask unanimous consent that Senators Anderson Hill Malone be permitted to submit petitions and for the work of the FBI in detecting plots of Benton Hoey Martin sabotage, spying, and infiltration; to the Butler Holland Millikin memorials, introduce bills and joint res Committee on Appropriations. Byrd Humphrey Morse olutions, and present routine matters Cain Hunt Mundt for the RECORD without debate. Chapman Ives Murray Chavez Jenner Neely The VICE PRESIDENT. Without ob Connally Johnson, Colo. O'Conor jection, it is so ordered. Cordon Johnson, Tex. O'Mahoney Mr. ROBERTSON. Mr. President, I SENATE Darby Johnston, S. C. Robertson Donnell Kefauver Russell ask unanimous consent to make a brief TUESDAY, SEPTEMBER 19, 1950 Douglas Kem S'.:tltonstall statement concerning a bill sponsored by Dworshak Kerr Schoeppel the Senators from North Carolina [Mr.
• 1950 CON.GRESSIONAL RECORD-· ·SENATE 15079 the Senate, MORSE previously taught argu• "We cannot continue to· be caught with Nation nearly $140,000,000, the figure for mentation and law, was dean of the Univer• inadequate plans and inadequate imagina the last crop being approximately $39,- sity of Oregon Law School. tion in a world which threatens to catch Senator LEVERETT SALTONSTALL, Republican. fire," JOHNSON said. 000,000. The support program for the Massachusetts, was three times Governor of Besides continuing its studies of surplus 1949 crop in the four States in the his State before he came to the Senate 6 years disposal kinks, rubber and other stockpiling, southeastern area that produce oil pea ago. Gentle, diplomatic, SALTONSTALL helps the committee will dig into these other nuts cost $26,205,000 and amounted to cement the committee's bipartisan unanim· defense problems: a subsidy of $23.93 per acre. ity. Manpower: What is the policy and what Every Member of this honorable body TOP-FLIGHT COUNSEL plans are being made to get the necessary knows that the Congress cannot 1ndefi Rounding out "investigation task force" is manpower for total mobilization? Shouldn't nitely continue to pay the farmers of Donald C. Cook, the 41-year-old chief coun high physical standards be dropped for that area an average subsidy of $20.93 sel. Since the committee is shy of funds, some forms of noncombatant service? Cook is working without pay, on a part-time Couldn't a man with a slight disability stand per acre to produce peanuts for oil mak basis. His regular full-time job: Vice Chair guard as well as a class A physical specimen? ing purposes for which there is no need man of the Securities and Exchange Commis Cartels: To what extent are foreign and no market. That is the reason I sion. monopolies in items we must have for the have stated that unless we can adjust Cook served as chief counsel for the old war effort, raising our costs for rubber and this program on a fair and equitable basis House Naval Affairs Committee's defense in other strategic items? the program is going to be wrecked. vestigat ion, where JOHNSON first worked with Steel: Do we have enough steel capacity The present control program, while in him. Cook's appointment was a good exam in this country for future armament pro ple of the committee's bipartisan team play. grams and domestic use as well? Where adequate to control the overproduction Knowing JOHNSON wanted Cook for counsel, should we strike a balance? · of the types of pe-anuts crushed for oil, Senator BRIDGES, the Texan's opposite num All are aimed at what Alumnus Investi has nearly put the Virginia and North ber politically, made the motion that led to gator Harry Truman told the seven-man Carolina growers of peanuts out of busi his appointment. group was the prime object of his World ness although the market for edible pea The committee's initial investigation, of War II inquiry. He said he hoped this would nuts is so strong that we are importing the surplus disposal program, also came on be the chief goal of the Senate's new one. some peanuts of that type with which BRIDGES' motion. "How to get the most efficient, economical, to meet the demand. Cook, unable to serve in the Armed Forces and honest defense effort possible." in World War II because of poor vision, re Said JOHNSON: "That's all that we're try As previously indicated, Virginia was ceived his highest tribute from Chairman ing to do." growing edible peanuts when no peanuts CARL VINSON (Democrat, Georgia) Of the THE PEANUT MARKETING QUOTA PROVI whatever were being grown in Georgia. House Armed Services Committee when he SIONS OF THE AGRICULTURAL ADJUST But under the current control program, concluded his job for the old Johnson sub MENT ACT OF 1938 which will be made even more drastic committee. next year, Virginia is now devoting a Said VINSON: Mr. ROBERTSON. Mr. President, I smaller acreage to peanuts than she "Your satisfaction in a job well done for desire to associate myself with the views did in 1909. In 1948 the Virginia acre us must come from an inner satisfaction so ably expressed on the floor of the which is not decorated by medals or diplo age was 164,000 acres. In 1950 it had mas or put on parchment paper. We of the Senate on September 13-page 14666 of been cut to 141,108 acres, and, as pre committee know that you manned your the CONGRESSIONAL RECORD of that date viously indicated, another cut is coming battle station." by the able junior Senator from North up for 1951. But what has happened in As the investigation continues, the com Carolina [Mr. GRAHAM] concerning S. Georgia? I do not have the Georgia mittee will draw on all the top-flight World 3135. That bill seeks to remedy a sit figures for 1948 but for 1950 the Georgia War II experience it can reach. Men like uation which unless remedied will un allotment was in excess of 800,000 acres. Robert P. Patterson, former Secretary of War; doubtedly destroy the support program That situation was so palpably unfair Robert M. Littlejohn, General Eisenhower's for peanuts. It provides for the separa quartermaster general, and Col. R. L. Harri that the Senate Agriculture Committee son, the Agriculture Department's former tion of peanuts into three general classes reported the Hoey-Graham bill by a ace food expert, may help the committee, in and allows the Department of Agricul unanimous vote. I predict that when an advisory way, to guard against the defense ture to put into effect acreage control the Senate is permitted to vote on the mistakes of the past. based upon available markets for each bill, it will pass the bill by an over With President Truman cooperating class. whelming majority. Far -be it from me with-in fact rooting for-the war investi Virginia and North Carolina produce to criticize any distinguished colleague gating team like an old grad, chances are that official Washington will, too. class No. 1 which includes the Virginia whose State is enjoying a great advan The last business-as-usual signs may type of Jumbo peanut and the Valencia tage in this peanut program for being come off war-related programs, and Wash type, both of which are edible peanuts reluctant to relinquish it. I do feel jus ington may lose that waffle-bottom squat. with only the culls being crushed for tified, however, in saying to those who Until it does, the committee is plentifully oil. take · this position that the peanut-oil supplied with tacks, and men who know · The State of Georgia produces the program in Georgia and other south where to put them. eastern areas cannot possibly survive An intensive program of investigations Runner type which is used exclusively will spread over the remaining 3 months for the production of oil. Virginia was without a support price and that we are of this year. producing edible peanuts when no pea heading for the time when the entire A study of Alaskan defenses is just get nuts whatever were being produced in support program will be abolished. ting under way, directed by Senator HUNT. Georgia because the crushing of pea Personally, I do not want to see the Senators MORSE and SALTONSTALL will accom nuts for oil on a commercial basis did Georgia ·and Alabama producers of oil pany him to Alaska to probe for weak links not begin in the United States until peanuts wrecked. On the other hand, in a vital area. shortly before World War I. Shortly I do not want to see the Virginia and They will take a look at airfields, troops, and equipment, military-civilian relations, before the beginning of World War I North Carolina producers of edible pea radar protection, housing and roads. All less than 500,000 pounds a year of pea nuts wrecked. Under a no-support pro the time they will keep an eye out for nuts were crushed for oil. By 1918 it gram the producers of edible peanuts, subversive elements. had increased to 96,000,000 pounds. But for which there is a strong market, will. Although MORSE is up for reelection, he since there was no support price and of course, have a better chance for sur will skip any October campaigning, hope peanut oil in normal times couid not vival than the producers of the oil types. the gods are with him on election day. successfully compete with other types But a fairer program is proposed for all Anyway, he told the committee, Alaskan of vegetable oil the production dropped producers under S. 3135, and, in my opin defenses are more important. Another task force, headed by JOHNSON, to 14,000,000 pounds. Then after a sup ion, the Congress should write that bill will stay here in Washington and open port price was provided the amount in into law before the commencement of hearings in October on ordnance problems. creased rapidly until it reached the as another planting year. KEFAUVER and BRIDGES will work with JOHN tounding figure of 100,000,000 pounds a Mr. BYRD. Mr. President, will my SON on this study of the status. of our weap year and has continued since the end colleague yield for a statement? ons. of World War II at substantially that Mr. ROBERTSON. I yield. This three-man unit will try to find out rate although there was no commercial where we stand in research, development, Mr. BYRD. I desire to associate my. and utilization of critical items of arms market at a fair price for the entire self with my colleague, who has made a and equipment, including bazookas, gre product. very able presentation of the peanut nades, long-range projectiles, rockets, guided As a result the peanut support price situation affecting Virginia, and say that missiles and tanks. program has cost the taxpayers of this i heartily agree with him. 15080 CONGRESSIONAL RECORD-SEN£\ TE SEPTEMBER 19 · LIST OF PENNSYLVANIA NATIONAL mortal remains have now-. been laid to wives, and other relatives a measure of GUARDSMEN WHO DIED IN THE OHIO rest, each with the sole~n rites of his , comfort and sola<;e. TROOP-TRAIN WRECK religious faith and with full military I am sure that in the heart of every Mr. MARTIN. Mr. President, the. honors. American there is the deepest sympathy Wyoming Valley of my State is resuming Mr. President, I feel it is proper at this for those who were bereaved by the its everyday activity, bearing calmly and time to inform my colleagues that Penn terrible tragedy. · courageously the burden of tragedy and sylvania spared no effort to acknowledge Mr. President, I ask unanimous con sorrow which came suddenly last week its great debt to those who died in the sent to place in the RECORD at this point when 33 of its soldier sons were killed service of their country, I feel it is in my remarks the names of these Penn in the Ohio troop-train wreck. proper also to praise the efficient man sylvania boys who died for freedom in Senators will recall that these fine ner in which all arrangements were han the same patriotic spirit as their com young men were all members of the One dled by the adjutant general of Penn rades who face the enemy in Korea. Hundred and Ninth Field Artillery Bat sylvania, Maj. Gen. Frank A. Weber, and There being no objection, the list was talion of the Twenty-eighth Division, the his staff. Everything possible was done ordered to be printed in the RECORD, as Pennsylvania National Guard. Their that could bring to the stricken parents, follows: Battery B, One Hundred and Ninth Field Artillery Battalion
Rank Name . Serial No. Home address Next of.kin
I I Warrant officer ____ William W. Wellington __ _ W6847780 122 John St., Wilkes-Barre, Pa ______Mrs. Leah Belle Wellington (mother). Sergeant______John W. Cox ______20316877 38 McDonald St., West Plymouth, Pa ______Mrs. Mary Cox (mother). Do______William C. Edwards ______33358869 600 Schuyler Ave., Kingsto~, Pa~------Mrs. Charles Edwards (mother), 94 Amhurst Ave., Wilkes-Barre, Pa. Do______Gilbert B. Wharton ______23814614 64North Main St., Wilkes-Barre, Pa ______Mrs. Daisey Mae Wharton (mother). Corporal______Larry L. LuzenskL. ______23814667 125 Carverton Rd., Trucksville, Pa------~ --- Mrs. Sue Luzenski (mother). Private first class __ Leonard Balonis ______23814690 319 Maffett St., Plains, Pa ______Mrs. Anna Balonis (mother). Do______Harold Handlos ______23814703 22 East Luzerne Ave., Larksville, Pa ______Mrs. Bertha Handlos (mother). Do______Clyde P. Harding ______57201273 65 Union St., Kingston, Pa ______Mrs. Catherine R. Harding (wife). Do______Ronald J. Jackson ______23814695 942 East Northampton St., Laurel Run, Wilkes- Mrs. Laura Jackson (mother). Barre, Pa. Do______Raymond PudlowskL ___ _ 23814683 19 New St., Hudson, Pa______Mr. Rome Pudlowski (father). Do______Donald C. Zieker ______23814689 17 Central St., Hughestown, Pa ______Mrs. Dorothy Zieker (mother). Recruit ____ ------Hugh L. Fargus ______23814735 49 Gerard Ave., Plymouth, Pa ______Mrs. Mary Jones (mother). Do______Charles Norton __ ------23814739 216 Penn St., Lee Park, Wilkes-Barre, Pa ______Mrs. Marie Norton (wife). Do ______Richard A. Royer ______23814733 313 Bowman St., Wilkes-Barre, Pa ______Mrs. John Royer (mother). Sergeant______Lester J. Kuehn ______23815200 24 North Empire St., Wilkes-Barre, Pa ______Mrs. Arlene Kuehn (w ife) . Recruit______Frank C. Martinez ______23814729 810 Fox St., Bronx, New York, N. Y·------Mrs_ Lucile Martinez (mother), Do ______Eugene Carr ______23814737 114 Wilson St., Larksville, Pa ______Mrs. Catherine Carr (wife). Do ______William J. Dougherty____ _ 23814736 185 Nesbitt St., Larksville, Pa ______Mrs. Charles Dougherty (mother). Private first class__ Martin F. Hornlein_------23814685 92 S. Washington St., Wilkes-Barre, Pa ______Mr. Martin Hornlein (father). Do ______Edmund ZabickL ______33108177 177 Zerby Ave., Edwardsville, Pa_------Mrs. Bertha Zabicki (mother). Recruit______William F. Sobers ______23814732 48 Laurel St., Wilkes-Barre, Pa_------Mr. William Sobers (father).
Service Battery, One Hundred and Ninth Fiel,d Artillery Battalion
Rank Name Serial No. Home address Next of kin .
Captain_------Arthur J. Thomas ______012955459 79 Price St., Kingston, Pa------~------Mrs. Sally Thomas (wife). Warrant officer ___ _ James P. McGinley ______NoASN 207 Bennett St., Exeter, Pa ______Mrs. James F. McGinley (wife). Joseph E. Fletcher ______23815870 1287 Scott St., Wilkes-Barre, Pa ______Mr. Merson Fletcher (father). 1486 Scott St., Wilkes-Barre, Pa ______-_ --======Thomas M. Ostraszewski. 23815869 Mrs. Helen Ostraszewski (mother). PrivateCor~~~~ first class __ Edward W. Gallagher ____ _ NoASN 581West8th St., West Wyoming, Pa ______Mrs. Edward W. Gallagher (wife). Private ___ ------William F. Tierney ______23815872 23 East Jackson St., Wilkes-Barre, Pa ______Mrs. Anna Tierney (grandmother). Recruit ______Thomas W. Wallace ______23815880 204 Main St., Kingston, Pa ______Mrs. Estene Wallace (mother). Sergeant ______Bernard S. OkrasinskL __ _ 23815813 40 Brazil St., Wilkes-Barre, Pa ______Mrs. Stanley Okrasinski (mother). c_ orporal ______John L. Barna ______23815817 49 McHale St., Wilkes-Barre, Pa______Mrs. John L. Barna (wife), 164 Abbott St., Plains, Pa. Private ______William R. Disbrow ______23815878 87 East Northampton St., Wilkes-Barre, Pa ______Mrs. Eleanor Disbrow (mother). Wallace R. Ludwig ______23.E,15878 382 Osceala Ave., Kingston, Pa______Mr. Wallace Ludwig (father). Corporal_.Do_------______Carl W. Armbruster ______43043302 132 Maffett St., Plains, Pa_~------Mr. Carl Armbruster (father).
Mr. MARTIN. Mr. President, there FEDERAL ASSISTANCE TO STATES AND 7, 1950. The Senate Committee on Pub is a lesson in .Americanism in this list LOCAL GOVJ!!RNMENTS IN MAJOR DIS· lic Works has favorably reported the of honored names. ASTERS bill, without amendment. I may say It reflects the diverse national origins Mr. McCLELLAN. l\ir. President, I ask that we have before the Public Works: that are bound together in the greatness unanimous consent that the unfinished Committee of the Senate some four or of our country. business be temporarily laid aside, and five bills on which we have held hear It is indicative of the best traditions that the Senate proceed to consider ings, dealing with this problem. As I of American freedom, tolerance; and re House bill 8396, Calendar No. 2575. recall, 40 Senators were co-sponsors of spect for the rights and religious beliefs The VICE PRESIDENT. . Is there ob one of those bills. However, · this bill of our neighbors. jection? came from the House of Representatives, As I read the list I found names of Mr. WHERRY. The Senator has and it generally conforms to the judg English origin, Irish, Scotch, Welsh, made a unanimous-consent request, has ment of the committee. Therefore, we German, Spanish, Polish, and Elavish he not, to bring up the bill for immedi reported the bill without amendment. countries, and others. ate consideration? Mr. WHERRY. Mr. President, will America is so fortunate that real the Senator yield at this point? Mr. McCLELLAN. Yes; the disaster Mr. McCLELLAN. I yield. Americanism is distilled in the great relief bill. melting pot of our Nation. Mr. WHERRY. Was ·the bill reported Mr. · WHERRY. Mr. President, re unanimously by the committee? If the people of our Republic remain serving the right to object, will the dis united in patriotic purpose and are Mr. McCLELLAN. It was. tinguished Senator explain what is in Mr. WHERRY. Was there a full guided by high moral and spiritual prin~ the bill? ciples the world will be freed of the God attendance at the committee meeting of less Communist philosophy, and peace, The VICE PRESIDENT. The bill will all members of the committee, on both with freedom and justice, will he re be stated by title for the information of sides, in order that all of them might stored. the Senate. have a ch·ance to review the bill? The LEGISLATIVE CLERK. A bill (H. R. Mr. McCLELLAN. Does the Senator EDUCATION OF IRANIAN STUDENTS IN 8396) to authorize Federal assistance to refer to the time when the bill was re THE UNITED STATES States and local governments· in major ported by .the. committee? The Senate resumed the consideration disasters, and for other purposes. Mr. WHERRY. Yes. of the bill 1950 CON_GRESSIONAL RECORD-SENATE 15085 $90,000 which she has already received. I need not read it all. I will do so, if State under the provisions of the act of Feb In my opinion, that is the sole reason the Senator from Wyoming desires to ruary 27, 1896 (29 Stat. 32, title 31, U. S. C., why this case has not been ;.; Jttled in the have me. But the last paragraph reads: sec. 547). past. Now it is my request that I be given a Can the Senator advise me as to what I h ave seen letters in the files in the hearing and present my claim for the Tren the provisions of the act referred to are? committee. I do not remember so much ton Fund. I am particularly interested in whether the statements of Mr. Miles as I do some Your office can reach me at Metropolitan or not the act provides for the payment statements by Mr. Wallace Murray, who 4094. With assurances of my appreciation, I am, of interest on trust funds. I believe was the charge, or some official Sincerely yours, Mr. FULBRIGHT. My curbstone in the Embassy at Tehran. KATHERINE lMBRIE. opinion would be that the act does not There was a difference of opinion, par provide for interest. It is title 31, United ticularly b3-tween Mr. Murray and Mrs. That is her signature; and under it is States Code, and reads: "Mrs. Robert Whitney Imbrie, relict." Imbrie. Mrs. Imbrie did not think the All moneys received by the Secretary of proper salute was fired when the ship I do not know what could be plainer State from foreign governments and other carrying the body of her husband took than that she is here stating to the chair sources, in trust for citizens of the United off at Basra; that there should have been man of the Committee on Foreign Rela States or others, shall be deposited and cov 21 guns fired at a particular time, but tions, in 1949, that she wants to present ered into the Treasury. there were only 10. There were many her claim to this fund. If I have mis The Secretary of State shall determine the interpreted that, I apologize to Mrs. Im amounts due claimants, respectively, from things she thought were wrong with the each of such trust funds, and certify the honors p'aid to Mr. Imbrie. She also brie, but I thought I was justified in say ing she was seeking this fund. same to the Secretary of the Treasury, who complained that the people who were re shall, upon the presentation of the certif sponsible for the act were not punished. I brought this letter along simply as icates of · the Secretary of State, pay the one piece of evidence. I believe the amounts so found to be due. From what I gathered from reading Senator will find in the files that there the files, Mr. Imbrie's death was caused are several letters, in fact, an enormous That is the language of the act. by a mob, and it is rather difficult to say file in this matter, in one of which Mrs. Mr. CORDON. Is that the entire sec who is responsible when there is a mob. Imbrie includes a great many excerpts tion? I think Mrs. Imbrie thought the chief of from official documents pertaining to the Mr. FULBRIGHT. Yes. Prior to the police should have borne the responsi matter of the shipment of the body of Comptroller General's opinion, I be bility and should have been hanged at her husband at the port, how many shots lieve the State Department thought this the moment. I cannot pass on all the had been fired, and whether or not due did constitute a trust under that provi details as to who was punished, and how. deference had been paid to the body of sion. That is a matter of controversy. That her husband. Mr. CORDON. My next question, is why I am not willing to say what the I certainly do not want to reflect upon then, is, What is the reason for the lan facts were. I can only say that there is Mrs. Imbrie as an individual. I am sure guage in the next sentence, with par some difference of opinion as to whether she takes this very seriously. But, on ticular reference to this portion of it, proper honors were paid on the shipment the other hand, I believe our Govern quoting from line 12, page 2, "which of the body of Mr. Imbrie on the Tren ment has an obligation. While it is true fund shall be deemed, insofar as the ton, and whether the guilty persons were the amount is small, it is a solemn obliga same may be necessary, to have been punished. But that is not the contro tion undertaken by this Government for heretofore. appropriated as a trust fund versy here. a worthy purpose, namely, to create con under the said act of February 27, 1896, Mr. O'MAHONEY. Mr. President, will ditions in which riots will not continue and the Permanent Appropriation Re the Senator yield to me to make a brief to. be stirred up in one country or an peal Act, 1934, as amended," and so forth. statement? other, and to try to bring about, as the Mr. FULBRIGHT. The theory has Mr. FULBRIGHT. Yes. department says, better relations be been to preserve the relationship which Mr. O'MAHONEY. Inasmuch as the. tween the two countries. it was thought had been established by Senator has seen fit to make certain If we followed the rule of an eye for an the exchange of notes that this is a comments with respect to the widow of eye or a tooth for a tooth, we would never trust fund paid by the Iranians for this the American vice consul who was assas make any progress. I think this whole purpose. It is felt that as a matter of sinated in the performance of his duties thing is a gesture of ·good will. The public relations the theory of its being in the capital of a foreign government, I amount is small. I think it is indefensi a trust fund should be preserved, rather should like to say that I have known ble to say that we do not have any obli than that it is a gratuitous appr.opda Mrs. Imbrie for more than 20 years. gation to discharge this undertaking, and tion of our own funds for that purpose. While I have been a Member of the Sen to do everything our Government under Mr. CORDON. Is it intended by that ate I have known her, and never once took to do. We were under no pressure language to cure, by retroactive appli has she even suggested to me that she to say we would use this fund for this cation, whatever error the Secretary of desired to have any part of this money. purpose. We did it voluntarily, and the State may have made when he deposited Mr. FULBRIGHT. Let me say to the Iranian Government, as Mr. Hyde has the funds to the general account of the Senator-- said, in reliance upon our action, paid the Treasury? Mr. O'MAHONEY. .I think the Sena money. I think Mrs. Imbrie is unduly Mr. FULBRIGHT. That is what I tor's statement of depreciation with re excited about the details. think is the purpose sought to be spect to the widow of an American offi In all fairness, I am sure that the pay achieved. cial has really no part in this argument. ment which was made, which I think was Mr. CORDON. Is any accrued interest Mr. FULBRIGHT. If the Senator will $90,000, compared with what we give on credited to this account? pay close attention, in the first place, I death claims in other fields, was ade Mr. FULBRIGHT. It is my informa do not consider that what I have said quate. We have never given that much tion that there is not, although I think was depreciation. I am trying to state where our own Government has caused a case could. be made for it, because it a .fact, that Mrs. Imbrie has attempted a death. I believe in one case last year, was by our default that the money was to obtain this fund. at the insistence of the Senator from never used for the purpose. However. I have in my hand a letter dated Au Wisconsin [Mr. McCARTHY], we allowed I am not proposing such a thing. The gust 2, 1949, which was subsequent to the $25,000, but before that $10,000 had been bill does not provide for it, and I know. introduction of the original bill. This the top. of no one who contemplates any interest. letter is addressed to Hon. ToM CoN Mr. CORDON. Mr. President, will the I do not think anyone entertains a doubt Senator yield? NALL Y, chairman, Foreign Relations that no interest is to be considered, un Committee, Senate Office Building, Mr. FULBRIGHT. I yield to the Sena less we should provide that it shall be Washington 25. tor from Oregon. paid, and I am not asking that that be I DEAR SENATOR CONNALLY: There are two Mr. CORDON. am interested in sec done. bills which will come to your committee for tion 2 of the bill, which begins with this Mr. CORDON. Is the Senator asking final act ion; H. R. 3731 h as passed House; language: by reference to any of the sections of • Senate bill 2342, introduced by Senator FUL The said sum of $110,000 shall be deemed the law, that the bill make provision for BRIGHT, is still pending. a trust fund rec'eived by the Secretary of interest? , 1 15086 CONGRESSIONAL RECORD-SENATE SEPTEMBER 19 Mr. FULBRIGHT. · No; and the men The legislative clerk called the roll, Last evening, immediately before the tion I made of the law of 1896 is .not with and the following Senators answered to Senate adjourned, I read into the RECORD the thought that interest should be paid their names: the testimony of another diplomatic rep on these funds. Anderson Hoey Martin resentative of the United States, Mr. Mr. CORDON. I appreciate the Sen Benton Holland Millikin Edgar Sisson, who was in Russia during But ler Humphrey Morse ator's statement. Byrd Hunt Mundt the Red Revolution. He was sent there Mr. FULBRIGHT. It is my definite Cain Ives Murray by President Woodrow Wilson.- He pub understanding that if the bill is passed, Chapman Jenner Neely lished a book entitled, "One Hundred Chavez Johnson, Colo. O'Conor no interest will be added to the fund. Connally Johnson, Tex. O'Mahoney Red Days." In this book there is to be It will simply provide for the amount of Cordon Johnston, S. C. Robertson found the following reference to Major $110,000 which the Iranian Government Darby Kefauver Russell Imbrie: Douglas Kem Saltonstall deposited with our Secretary of State. Dworshak Kerr Schoeppel Intelligence channel, however, between Mr. President, I hope the Senator from Ecton Kilgore Smith, Maine Russia and the United States was not closed. Wyoming does not feel that my remarks Ellender Langer Stennis Robert Imbrie, sent by Ambassador Francis Ferguson Leahy Thomas, Okla. from Vologda to be acting consul at Petro-: have in any way been personal or re Frear Lehman Th ye grad after the· Brest-Litovsk peace reopened flected upon the widow of Mr. Imbrie. Fulbright Long Tobey the city, became ~he active int elligence offi That is not my purpose. I think he can George Mc Carran Tydings Gillette McClellan Watkins cer, and continued in that capacit y after understand that this is a matter with Graham McFarland Wherry Americans left Russia, going then to the which I have been struggling: It is one Green McKellar Wiley border city of Viborg, in Finland. His work, of those rather ·small matters that re Gurney McMahon Williams so far as I know, never has received public Hendrickson Magnuson Young . credit, and certainly not its deserts. Nor quire an enormous amount of time. I Hill Malone must say that I have spent a good deal have I felt that his death, in Tehran, July The PRESIDING OFFICER STATE WHERE GAMBLING IS ILLEGAL MUST PASS only to a State into which it is legal' to Mr. WHERRY. That ·is really the LEGISLATION send them. At the present time there is point at issue? Mr. MALONE. In order to take care only one State into which it is legal to Mr. JOHNSON of Colorado. That is of a State in which gambling is legal, send slot machines, and that is the State correct. I wish to read to the Senate and to permit gambling in that State, of Nevada. Therefore under the bill it some of the things that happened in con legislation would have to be passed by would be possible to have a :fiow of slot ference yesterday. The conference a State which may have no particular machines from Nevada to Chicago and lasted an hour. This is a part of the interest in such matters. from Chicago to Nevada. All that would record that was made. The House con Mr. JOHNSON of Colorado. The be required would be an act of the legis ferees rejected two amendments pro lature providing for it. posed by the Senate conferees. I should Senator is stretching th~ point. If the State of Illinois wants to permit the re Returning to the conference report, on like to have the attention of the Sen pair of slot machines shipped into it August 29 I received a letter from the ator from Nevada to this language. The from Nevada, it can provide for that Justice Department, signed by Peyton House conferees rejected two amend very thing by legislation. The bill Ford, Deputy Attorney General. It ments proposed by the Senate conferees. would take care of both States, if they deals with the House bill and the con The first amendment would have per wished to take care of themselves. ference report which was adopted yes mitted the use of gambling devices as terday. The Attorney General wrote defined in the bill in any place owned Proceeding with the conference report, or controlled by the United States if it requires manufacturers and dealers in the first bill, which was passed by the Senate. The bill went to the House and such place is in a State or subdivision gambling devices to register annually thereof which has enacted a law pro with the Attorney General of the United it was changed by the House. We on the committee were eager to know viding for the exemption of such State States. The original Justice Depart or such subdivision from the provisions ment bill would have required registra whether the Attorney General was satis fied with the House bill, because of the of section 2 of the bill. tion with the Collector of Internal Rev origin of the legislation. The origin of The second amendment--and this is enue in the collection district in which the legislation-and I wish Senators to the amendment which the Senator from the business is carried on. The confer Nevada has been very much interested ence report adopted the House language keep this in mind-came from the crime conference, from mayors of the in-would have permitted a State which with respect to that matter. They great cities of the country, the attorneys had enacted a law p·roviding for the ex would register with the Attorney Gen general of the States, and the county emption of such State from the provi eral of the United States. attorneys of the many counties. We sions of section 2 of the bill to ship The conference report modifies sec wanted to know what the Attorney Gen gambling devices from such State for re tion 5 of the Senate bill by extending eral in his commitments to these com pairs into another State. The House con the prohibition to American-:fiag ships munities thought about the bill. He ferees felt these two amendments were on the high seas. said: incompatible with the objectives of this Furthermore, the conference report In response to your request, we have proposed legislation, and they voted them consolidates the penalty sections into a examined S. 3357, an act to prohibit the down. They told us of course they could single penalty of a $5,000 fine and 2 transportation of gambling devices in inter not consider them, and they advanced years' imprisonment for violations of all state and foreign commerce, as it was what I considered to be very sound. ar provisions of the bill. The Justice De amended and passed by the House of Repre guments why those proposals, made by partment bill, which the Senate had sentatives on August 28, 1950. While the the Senate. conferees, could not and passed, provided two classes of penalties, amendments effect substantial changes in should not be granted. namely, a $5,000 fine and 2 years' im the measure as it passed the Senate on April 19, 1950, it is our belief that these amend The Senate has created a Special Com prisonment for violation of section 2, ments do not alter the basic objectives of mittee To Investigate Organized Crime which prohibits interstate transporta the origina.l bill. In our view, if the House in Interstate Commerce. Senators will tion of gambling devices, and violation amendments are accepted by the Senate, the recall that the committee is made up of of section 5, which prohibits the manu Congress will have enacted a highly credit the Senator from Tennessee [Mr. KE facture, transport, possession, or use of able piece of legislation, in keeping with the FAUVER], the Senator from Maryland [Mr gambling devices on Federal territory; recommendations made on the subject of O'CoNoRJ, the Senator from Wyoming and a $2,000 fine and 1 year's imprison gambling devices by the Attorney General's Conference on Organized Crime. [Mr. HUNT], and the Senator from New ment for violation of section 3, which Hampshire [Mr. TOBEY] and the Sena deals with the registration of manufac The letter is signed by Mr. Peyton tor from Wisconsin [Mr. WILEYJ. Mr. turers and dealers of devices, and viola Ford. . Rudolph Halley is chief counsel. On tion of section 4, which deals with the So we have kept faith with the crime August 18, 1950, the special committee marking of packages containing gam conference in submitting this confer issued an interim report. I should like bling devices. Those are the changes ence report. to read one paragraph from_the interim which have been made by the House in We have in the Senate a special com report. the original Justice Department bill, and mittee appointed to investigate organ The committee favors and recommends the which have been approved by the con ized crime in interstate commerce. enactment into law of S. 3357, popularly ferees. Mr. WHERRY. Mr. President, will known as the slot-machine bill, which would Mr. WHERRY. Mr. President, will the Senator yield? · pr_ohibit the transportation of these gam the Senator yield? Mr. JOHNSON of Colorado. Yes. blmg instruments in interstate commerce. Mr. JOHNSON of Colorado. Yes. Mr. WHERRY. I do not wish to in Mr. WHERRY. I wish to get this terrupt the Senator, but I am trying to Mr. President, that is the recommen matter clear in my mind. because there get all the information I can. dation of our own committee, that this seem to be many issues involved. Of Mr. JOHNSON of Colorado. I am glad proposed legislation be enacted. course, a State legislature can go as far to yield to the Senator from Nebraska I wish to insert in the RECORD at this as it cares to go with respect to the im or to any other Senator who wishes to point in my remarks, the bill a~ it was portation into its borders of slot ma ask questions. passed by the House · and as adopted in chines. That is, they can write a law Mr. WHERRY. The other evening conference. . permitting the repair· or rrtanufacture of when this bill came up for discussion the The PRESIDING OFFICER. Is there them, and still not allow their use. Senator moved to concur in the House objection? Mr. JOHNSON of Colorado. That is amendments/I believe. There being no objection, the bill was correct. They can do that. Mr. JOHNSON of Colorado. That is ordered to be printed in the RECORD, as Mr. WHERRY. It is not necessary to correct. follows: permit gambling in the State of Illinois, Mr. WHERRY. Then the Senator Be it enacted, etc., That as used in this act for example, if the legislature does not withdrew the motion and asked for a (a) the term "gambling device" means- wish to permit it, and still permit slot conference, did he not? ( 1) any ~o-c~ll ed "slot machine" or any machines to come into the State for re other machine or mechanical device an es Mr. JOHNSON of Colorado. Yes. sential part of which is a drum or reel with pair, or for manufacturers to send them Mr. WHERRY. The conferees are re insignia thereon, and (A) which when oper out of the State. Am I correct? porting the bill with the ·House amend ated may deliver, as the result of the appli Mr. JOHNSON of Colorado. The Sen ments. cation of an element of chance, any money ator is correct. They can send them out Mr. JOHNSON of Colorado. Yes. or property, or (B) by the operation of which 1H50 CONGRESSIONAL RECORD-. SENATE 15107 a person may bec.ome entitl_ed to receive, as tained on an inspection of the outside of the certain gambling devices, particularly slot the result of the application ·or an element article or package. machines. The Attorney General of the of chance, any money or property; or SEc. 5. It shall be unlawful to manufac United States drafted such legislation and (2) any machine or me.chanical device de ture, recondition, repair, sell, transport, sent it to the Senate and House of Repre signed and manufactured to operate by possess, or use any gambling device in the sentatives with a request that it be enacted. means of insertion of a coin, token, or sim- District of Columbia, in any possession of The request was referred respectively to the 1lar object and designed and manufactured· the United States, or within Indian country: Senate and House Committees on Interstate so that when operated it may deliver, as the as defined in section 1151 of title 18 of the and Foreign Commerce and on April 4, 1950, result of the application of an element of United States Code or within the special I introduced the bill by request. On April chance, any money or property; or maritime and ·territorial jurisdiction of the 12 our committee considered the bill in ex (3) any· subassembly or essential part in United States as· defined in section 7 of title ecu$e session and ordered it reported fa tended to be used in connection· with any 18 of the United States Code. vorably without amendment. On April 19 such machine or mechanical device. SEC. 6. Whoever violates any of the provi the Senate passed the bill unanimously on (b) The term "State" includes Alaska, sions of section 2, 3, 4, or 5 of this act shall the consent calendar. The bill was then re Hawaii, Puerto Rico, the Virgin Islands, and be fined not more than $5,000 or imprisoned ferred to the House Committee and begin Guam. not more than 2 years, or both. ning on April 27 that committee held 5 days (c) The term "possession of the United SEC. 7. Any gambling device transported, of hearings, subsequently reporting the bill States" means any possession of the United delivered, shipped, manufactured, recondi on August 20 with amendments. In my States which is not named in paragraph (b) tioned, repaired, sold, disposed of, received, judgment and in the view of the Department of this section. possessed, or used in violation of the pro of Justice, the House amendments material visions of this act shall be seized and for ly improve the bill. SEC. 2. It shall be unlawful knowingly t~ feited to the United States. All provisions transport any gambling device to any plac& of law relating to the seizure, summary and Following House passage, a sudden interest in a State, the District of Columbia, or a judicial forfeiture, and condemnation of developed in the legislation, concern began possession of the United States from any vessels, vehicles, merchandise, and baggage to be expressed about its enactment. sug place outside of such State, the District of for violation of the customs laws; the dis gestions were even made that this bill in Columbia, or possession: Provided, That this position of such vessels, vehicles, mer fringed on States' rights, despite the fact section shall not apply to transportion of chandise, and baggage or the proceeds from that it was the States themselves, through any gambling device to a place in any State the sale thereof; the remission or mitiga their law-enforcement officials who initiated which has enacted a law providing for the tion of such forfeitures; and the compromise the bill and urged its enactment. Let me exemption of such State from the provisions of claims and the award of compensation to say right here and now that this is one of of this section, or to a place in any sub informers in respect of such forfeitures shall the few bills in the last 2 decades which is division of a State 1f the State in which such apply to seizures and forfeitures incurred, or scrupulous about States' rights; it keeps the subdivision is located has enacted a law alleged to have been incurred, under the pro Federal Government out of State and local providing for tlia exemption of such sub• visions of this act, insofar as applicable and police powers; no Federal official is going to division from the provisions of this section. not inconsistent with the provisions hereof: become an enforcement officer in any State Nothing in this act shall be construed to Provided, That such duties as are imposed or locality. All it does is exercise the con interfere with or reduce the authority, or upon the collector of customs or any other stitutional duty of the Federal Government the existing interpretations of the authority, person with respect to the seizure and for with respect to interstate commerce by deny of. the Federal Trade Commission under the feiture of vessels, vehicles, merchandise, and ing the avenues of such commerce to slot Federal Trade Commission Act, as amended baggage under the customs laws shall be per machines unless a State has made the opera (15 u. s. c. 41-58). formed with respect to seizures and forfei tion of slot machines legal within that State. SEC. 3. Upon first engaging in business, tures of gambling devices under this act by In view of the new interest expressed in and thereafter on or before the 1st day of such officers, agents, or other persons as may the legislation and suggestions made that July of each year, every manufacturer of and be authorized or designated for that purpose certain changes be made· in the House form dealer in gambling devices shall register with by the Attorney General. of the bill, we decided to ask the House for the Attorney General his name or trade SEC. 8. If any provision of this act or the a conference. That conference was held name, the adrlress of his principal place of application thereof to any person or cir yesterday afternoon from about 4: 15 to 5: 15 business, and the addresses of his places of cumstance is held invalid, such invalidity p.m. business (in such district). On or before the shall not affect other provisions or applica At that conference I proposed, an behalf of last day of each month every manufacturer tions of the act which can be given effect the Senate, not only the adoption of the of and dealer in gambling devices shall file without the invalid provision or application, Senate bill, but also specifically two addi with the Attorney General an inventory and and to this end the provisions of this act tional new amendments. One would have record of all sales and deliveries of gambling are declared to be ,severable. permitted a State in which slot machines devices as of the close of the preceding are legal to ship such machines out to ·an calendar month for the place or places of Mr. JOHNSON of Colorado. Mr. other State for repair. The House conferees business (in the district). The monthly President, I also ask to have inserted in unanimously rejected that amendment, ex record of sales and deliveries of such the RECORD at this point a statement by plaining that in the first place such an gambling devices shall show the mark and me describing the bill, which will be amendment would nullify the entire bill, number identifying each article together somewhat repetitious, but I think it since it would permit a State in which slot with the name and address of the buyer or might well go into the RECORD, as it machines are legal, such as Nevada, to ship consignee thereof and the name and address machines into every State in the Union, of the carrier. Duplicate b1lls or invoices, 1f covers the whole subject. whether or not slot machines are legal in complete in the foregoing respects, may be The PRESIDING OFFICER. Is there such States. The House conferees also point used i:µ filing the record of sales and de objection? ed out that if it was desirable or necessary liveries. For the purposes of this act, every There being no objection, the state.:. for machines to be shipped into a Stat e for manufacturer or dealer shall mark and num ment was ordered to be printed in the repair or rem;wal, all that was necessary is ber each gambling device so that it is indi• RECORD, as follows: for the State to pass legislation making such vidually identifiable. In cases of sale, de shipment legal. livery, or shipment of gambling devices in STATEMENT B7 SENATOR JOHNSON OF COLORADO The second amendment I offered on behalf unassembled form the manufacturer or Mr. President, I think it is desirable that of the Senate was to permit the legal opera dealer shall separately mark and number the a brief explanation be made before request tion of slot machines on Federal property in components of each gambling device with a ing approval of the conference· report on States where the operation of slot machines common mark and number as if it were an s. 3357, the bill prohibiting interstate trans is legal. Again, the House conferees unani assembled gambling device.· It shall be un portation of certain gambling devices. mously rejected the amendment, explaining lawful for any manufacturer or dealer to sell, Initially, the Senator from Colorado de that such an amendment would establish far deliver, or ship any gambling. device which sires to emphasize that he takes no pride reaching precedents with respect to State is not marked and numbered for identifica of authority in this legislation. Senators control over Federal territory. tion as herein provided; and it shall be un should. understand, however, that this bill Thereafter, we reviewed in detail each of lawful for any manufacturer or dealer to is endorsed by practically every State and the House amendments, eight in all. m anufacture, recondition, repair, sell, deliver, municipal law enforcement official in this The House struck out the definition of or ship any gambling device without having country. They are on record as wanting this gambling devices contained in the original registered as required by this section, or legislation. They and their representatives Justice Department bill and substituted a without filing monthly the required inven met here last February-mayors, State at- much more specific and narrow definition, tories and records of sales and deliveries. -torneys general, police chiefs, county attor• the effect of which is to limit the bill ex-, SEc. 4. All gambling devices, and all pack neys-in a national crime conference whicl:). elusively to slot machines and to exclude ages containing any such, when shipped or was addressed by President Harry Truman. :from the bill such other coin-operated de transported shall be plainly and clearly After several days of deliberation, they vices as pin-ball machines. However, the labeled or marked so that the name and passed a number of resolutions. The very definition in the House bill is still broad address of the shipper and of the consignee, first of these was a. resolve requesting the enough to include slot machines which do and the nature of the article or the con Federal Government to enact legislation not pay off in cash and are paid off in mer tents of the package may be readily ascer- prohibiting the interstate transportation of chandise or cash over the counter. 15108 CONGR~SSIONAL RECORD-SENATE , SEPTEMBER 19 , The House bill defines "State" to in clude For example, in Nevada slot machines are organizations, including officers' clubs op Fed ,i\.laska, Hawaii, Puerto Rico, the Virgin Is licensed by the State government. They eral property, such as Army posts. The bill lands, and Guam. This places these terri bring in a sizable tax revenue. The operators does not change the existing situation with tories in exactly the same position as the in- of slot machines in Nevada, I am reliably in respect to slot-machine operation-in private . dividual States. Hence, the legislative as formed, have in stock some two and a half clubs or fraternal organizations in any State. semblies of all States and Territories would times the number· of machines actually in That remains a matter of State enforcement, have the power to authorize the transporta operation at any one time. Whether such ~nd the Federa_l Government is given abso t ion of slot machines into such State or a surplus of machines was purchased in an lutely no new enforcement powers by this Territory . . ticipation of the enactment of this legisla bill. Where slot machines today are op . It will be noted that the House version tion I cannot say. But, operation of slot ma erated despite State laws making such opera tightens the 'original Justice Departwent chines will continue in Nevada after enact tion illegal, I assume such operation will langu age by requiring the various States to ment of this legislation just as before. There continue at the pleasure or discretion of the specifically pass laws exempting such States will be this added advantage to Nevada. It State and local enforcement officials. How from the provisions of the new law instead may well become an oasis of legal operation ever, as to Federal property, the bill does of merely allowing the governor to certify of the machines in the United States and prohibit the possession or use of slot ma to the Attorney General that the State now in that respe.ct will a~tr act even more cus chines. Frankly, I do not see how the has such a law. The effect therefore, is to tomers than ever before to play them. Congress can prohibit the interstate ship require each State legislat ure to enact legis Moreover, if enactment will actually re ment of devices which everybody acknowl lation exempting that State or a particular sult in the closing down of the large n ational edges as "one-armed bandits" which do not subdivision of it from the effect of the Fed manufacture of such machines, it is quite give the customer an even break, and at eral law. ' The House eliminated a· provision probable that some enterprising Nevadans the same time perm it and encourage their which .would have barred exportat ion of will set up a repair m achine shop in Reno operation on Federal territory . . If . such slot machines to foreign countries. or Las Vegas or some other city and m aintain machines are bad, they are bad, and we Another House .amendment requires every repair· and replacement. facilities for the have no business exempting Federal prop manufacturer and dealer in gambling de machines. Thus, the enactment of the bill erty from the bill and thus make every Army vices to annually register with the Attorney may actually result in promotion of small post or officers' club a gambling oasis. General of the United States. The original business in Nevada. . I say again what I emphasized in the be Justice Department language would have re The junior Senator from Nevada has told ginning, this legislation is not personal to ·quired registration with the Collector of me that he is concerned about the fact that the Senator from Colorado, or any other Internal Revenue in the collection district Nevada operators of slot mach ines will not member of the Senate Committee on In in which the business is carried on. be able to send their broken-down machines t erstate and Foreign Commerce. The Sen The House modifies section 5 of the Sen back to the factory and get them repaired, ator from Colorado has no pride of author ate bill by extending the prohibition to since the bill would prohibit the interstate ship; the bill came directly from the law American-fiag ships on the high seas. transportation of slot machines into States enforcement officials of the States and cities . . Also the House consolidated the penalty where they are not legal. I already pointed of this country; they urged its enactment ~ections into a single penalty of $5,000 fine out that I offered such an amendment and in the first resolve of the national crime and 2 years' imprisonment for violations of that it was · promptly and unanimously re conference held here early this year; the all provisions of the bill. The Justice De jected by the House conferees as making a language was drafted by the Department of partment has provided two classes of penal nullity of the entire bill. The slot .. machine Justice, and th~ bill was introduced by me ties: A $5,000 fine and 2 years' imprisonmen t manufacturer in the Midwest who is now op by request in my position as chairman of for violation of section 2, which prohibits posing t h e enactment of this bill says quite the committee. Our committee considered the interstate transportation of gambling frankly that if it is enacted, he will shut up it; reported it unanimously; and the Senate devices, and violation of section 5, which pro shop, since the legal market for machines is pa ssed it without a dissenting vote. The hibits the manufacture, transport, possession not large enough to warrant his operation. House of Representatives, in turn, passed it or use of gambling devices on Federal terri In short, at the present time he has no ob unanimously, I believe. It is now before tory; and a $2,000 fine and 1 year imprison jection to helping violate State law by ship us for adoption of a conference report which ment for violation of section 3, which deals ping his m achines into States where the ma concurs in House amendments which the with the registration of manufacturers and Department of Justice formally .informs us chines are illegal, but he does not want to are completely satisfactory. The Senator dealers of gambling deyices, and violation of tangle with t h e Federal Government when section 4, which deals with the marking of from Colorado has done his duty. The Sen and if interstate shipment is made illegal by ate can do as it pleases about the legislation. p ackages containing gambling devices. Federal law. So, presumably, he will stop It should be emphasized that the Depart manufacture if this bill becomes law. Ob . Mr. JOHNSON of Colorado. Mr. ment of Justice, which drafted the original viously, then, the bill will have the eff ect of President, I wish to repeat the chrono bill, approves of the changes made by the decentralizing the siot-machine manufactur logical history of the bill. House. I want to read from a letter from Mr. ing industry; wherever slot machines are Peyton Ford, Deputy Attorney General, giv legal small repair shops and even factories Following the crinie conf~rence and ing the Justice Department's views on the Will be set up to service and m aintain them. ~ction by the Department of Justice, a amended bill: T~is, then, is a great opportunity for those bill was sent to the Senate, and I int"ro "DEAR SENATOR JOHNSON: In response to who favor small independent business. duced it by request: I wish £o make a your request, we have examine_d S. 3357, an ·Frankly, I am somewhat surprised that the point about that request. It was not my act to prohibit transportation of gambling junior Senator from Nevada, who constantly bill, I had no part in its formulation. I devices in interstate and foreign commerce, is talking about the free-enterprise system as it was amended and passed by the House and building up of small business, should did not write any part of .it, I have no of Representatives August 28, 1950. While bleed for the large slot-machine manufac more interest in that bill that has any the amendments effect substantial changes in turer in Illinois. And lest anyone is ready other Senator or any other citizen. I do · the measure as it passed the Senate, April 19, 'to shed tears over the Illinois manufacturer have a profound respect for the law en ·1950, it is our belief that these amendments of slot machines, the Senat e will be com forcement officers of the United States do not alter the basic objectives of the origi forted to know that the manufacturer is a nal bill. In our view, if the House amend multimillionaire, full of years and wisdom and of the mayors of the cities of the ments are accepted by the Senate, the Con and ready to retire to either his Louisiana United States, and when they assemble gress will have enacted a highly creditable plantation or his Illinois farm, as his fancy and say they are having great difficulty piece of legislation, in keeping with the rec moves him. in enforcing the laws, I feel that I have ·ommendation made on the subject of gam The junior Senator from Nevada also has some responsibility in trying to help bling devices by the Attorney General's Con expressed some disfavor with a House amend ference on Organized Crime." ment which would require the Legislature them, because they have had a very diffi Mr. President, some questions have been of Nevada, or any other State, to pass a bill cult and onerous job. Therefore I in raised as to the specific effect of this legisla ·permitting slot machines to be shipped into troduced the bill by request on April 4, tion on States, or parts of States, wh ere the the State in conformity with this legisla 1950. A s1milar bill was introduced in ·possession and operation· of slot m achines is tion. As. the bill was originally drafted the House at the same time. _legal. Some Senators may have the impres by the Justice Department, and as it passed sion that since opposition has been expressed the Senat e, all that was requ ired was for the ' On April 12, 1950, the bill was consid ·by the junior Senator from Nevada, his State · governor of a State to certify to the Attorney ered in executive session ,in the commit may be adversely affected by enactment of General of. the United States that his State tee -and ordered reported favorably. the bill. has such a law. But during further con On April 12, 1950, it was reported by The facts are, Mr. President, that this ·siderat ion of this provision, and in view of legislation does not impair or impede· the . the criminal penalties attached, legal experts me to the. Senate, and Senate Report legal operation of a slot machine in Nevada, -felt that it was not good law to create a i482 was filed. or any place else where they are legal now, legal presumption simply_on the basis of a. On April 19, 1950, the Senate passed or if m ade legal by subsequent enactment of governor's certification, and h~nce the House the bill. State or Territorial legislatures. On the con modified that provision. 20, 1950, ~he t rary, it is reasonable to draw the conclusion Some concern has been expressed over the · On April it was referred to that su ch places may act ually be benefited ·effect of the legislation on the operation of . House Committee on Interstate and by the enactment of this legislation. slot machines in various fraternal and social Foreign Commerce. 1950 CONGRESSIONAL RECORD-SENATE . !5109 On April 27, May 2, 3, 4, and-5, 1950, together with the chairman of the sub matters to be voted upon at the meet hearings were held 5 days of hearings, committee, for. the splendid work they ing; and they require insiders to report by the House committee. . have accomplished ,in getting the bill to any trading they may do in· their com On July 27, 1950, the bill was consid- this point in its legislative history. pany's securities and to pay back to the ered in executive session of. the commit- ·Mr. President, I hope the Senate will company any short-term profits made tee and ordered reported with amend- accept the conference report, and that from such trading, Purely because of ments. the bill will become the law of the land, a historical inadvertence, which I de On August 20, 1950, the bill was re- for the reason that through the use of scribed when I introduced the bill, only ported by Mr. ROGERS, who filed a report this instrument of gambling through corporations subject to either the Secu on the bill, House report 2769. ' out the ". United States in certain areas rities Exchange Act, the Public Utility On August 28, 1950, the House passed huge fortunes are being gathered to- Holding Company Act, or the Investment the bill with amendments. gether by gangsters, ex-criminals, and Company Act, are today required to com On September 18, -1950, the conference that type of people, and the great in ply with those provisions. S. 2408 pro report was agreed to by the House, the jury to our economy from this activity poses to remedy this historical inadvert report which we have before us at the is that they are now getting into what ence and extend these standards to all present time. . we might call and what we should call companies similarly situated. If there are any questions any Sena- legitimate channels of our over-all econ When I introduced S. 2408, I invited tors desire to ask which I can answer, omy. They are buying utilities, they are comments from all interested persons. I shall be glad to attempt to help explain controlling banks, they are going into The response to this invitation was most the provisions of the bill. If not, I wish real estate, they are going into the dis gratifying. I received thousands of let to say just one last word in conclusion. tilling business, and they are following ters, which have assisted me in reaching I hope that at a very early hour the in those activities exactly the same prac a conclusion upon the merits of the vari Senate may pass upon the conference tices and same methods which they used ous provisions of the bill. These letters, report. I believe it is in the public in- in their gambling activities. and the testimony presented at the terest and against the interest of racket- Mr. President, I am very hopeful that hearings upon the bill, which were held eers and professional gamblers through- the Senate will, at a very early hour this in February, have convinced me that the out the country. So I hope the confer- afternoon, adopt this conference report. need for such legislation is clear and im ence report may be approved and the Mr. JOHNSON of Colorado. Mr. Pres- perative. bill enacted. ident, I wish to thank the Senator from However, the Banking and Currency Mr .. KEFAUVER. Mr. President, will Wyoming for his observations. I know · Committee, as everyone knows, was con the Senator yield? . he is very much interested in the whole timiously faced with orie piece· of urgent Mr. JOHNSON of Colorado. I yield problem pf_crime prevention, and he is legislation of tremendous national im to the Senator from Tennessee. associated with the v~ry distinguished portance after another, and. because ·the Mr. KEFAUVER. 'I wish to pay a very chairman of the committee, the Senator committee felt this legislation required high tribute to the distinguished chair- from Tennessee [Mr. ·KEFAUVER], and a ·considerable amount of study, and the man of the Committee on Interstate and they are both doing granJ work, along time element was not as important as . Foreign Commerce an~ its members for with the other members of the com was the case with such legislation as their handling of this bill, and for the m:ittee. rent control, housing, price and produc very thorough consideration it has been - · Mr. KEFAUVER. Mr. President, will tion control, it was decided the subcom given. While the chairman and the · the senator yield further while the Sen mittee should further study the legisla members of the Special Committee to ator from Wyoming is on the floor? tion with a view to action on it one way Investigate Crime in Interstate Com- Mr. JOHNSON of Colorado. I yield to or the other at the next session. merce have only commenced their inves- the Senator from Tennessee. ·I therefore plan to reintroduce the tigation-because of the sessions of the Mr. KEFAUVER. I wish to cay that I measure as soon as the next Congress two Houses of the Congress we have not · was very much impressed by the state meets. In the meantime; I should like been able to have as· many hearings as ment -of .the Senator · from Wyoming to discuss certain matters brought to we will have later-we are convinced, and · some time back. Actually, legislation of · light during the hearings as well as by our report is unanimous, on the point of this kind did much to help the. small various independent inquiries I have approving the legislation 'that ·is pro- fellow, because a great deal of the wages made, so that there may be adequate op posed here · today, and on commending and earnings of such men, which should portunity, in the interval before the next the Senate and·the House committees for · go for food and necessities of life, ac Congress meets, to consider and discuss bringing it up for the consideration of carding to the experience of the senator the legislation in the light of this in the Senate and the House. · from Wyoming, while he was Governor formation. · As the distinguished Senator from .· of his state, were diverted to other pur ·The "corporation" is today a well-es Colorado has stated, we feel that these · poses, and resulted in the depletion of tablished instrument of our economy. I gambling devices are not only bad in the family income. believe the great majority of corporate themselves, but they are a part of the officials recognize their offices are public apparatus that is used in places which PROTECTION OF INVESTORS IN LARGE trusts. Consequently, the corporate de r~sult in the assembling of people for CORPORATIONS vice . is today a legitimate and effective other types of criminal activities. I be- Mr. FREAR. Mr. President, on Au- instrument for obtaining large supplies lieve the cause of better law enforce- gust 8, 1949, I introduced a bill, S. 2408, of capital to further business enterprise. ment, and reducing organized crime in designed to compel the adoption of cer If it is to remain such, I believe it essen the United States, will have taken a great tain basic standards for the protection tial that the confidence of investors be forward step, and there will be less crime of investors in large corporations. maintained and corporate responsibility if the proposed legislation shall be Briefly, the bill would apply to all large be made the law of the land. S. 2408 is enacted. / corporations with substantial public in- designed to accomplish this purpose. Mr. JOHNSON of Colorado. Mr. terest-defined as those with at least Industry, the Executive, and Members President, I am very pleased to have this $3,000,000 of assets and 300 security hold of this Congress have all repeatedly ex observation from the Senator from Ten- ers-the disclosure, proxy, and insider pressed concern over the dearth of ven nessee, who has devoted a great deal of trading provisions which have been part ture capital. There must be a continu time and energy and talent to the very of the working code of listed and spe ous flow of such capital if we are to con difficult questions relating to crime. I cially regulated companies for many tinue our present dynamic business ex am very glad indeed, and our commit- years under the Securities Exchange Act pansion, with its consequent prosperity tee is glad, to have his approval. . of 1934 and other acts. for all segments of the population. Nev Mr. HUNT. Mr. President, will the These provisions require financial ertheless, in spite of some $200,000,000, Senator from Colorado yield? statements reflecting an accurate pie- ooo of liquid savings available for invest . Mr. JOHNSON of Colorado. I yield ture of the financial condition of the ment, only a small portion is used to pur to the Senator from Wyoming. business to be filed annually with the chase equity securities. In the popular Mr. HUNT. - I, too, should like to com- Securities and Exchange Commission; mind, common stocks, especially of less pliment tb,e chairman of the Committee they require proxy solicitations to dis er-known enterprises, are often associ on Interstate and Foreign Commerce, close essential information about the ated with speculative risk, and, indeed, as XCVI--951 '15110 . CONGRESSIONAL RECORD-SENATE SEPTEMBER 19 to those companies which are operated · sion as a national securities exchange, presented relatively in the main by man behind a veil of nondisclosure, the gam The report states, in part: agement. Security holders were almost bling instinct may be the only impelling We do require, however, that all bonds other unanimous in their support. Thus, force toward equity investment. than railroad bonds, which are exempt from at the time security holders clamored · But we cannot finance our economy the registration provisions of the Securities for legislative assistance in their at with the equity capital it needs by ap and Exchange Commission because their is tempts to obtain adequate disclosure, peals to the gambler's instinct. ·It seems . suance must be approved by the Interstate some management opposed such legis- . Commerce Commission, must be obligatio~s to me as plain as a pikesta:f! that such · which have registered securities with the lation and sought to protect their ability capital will not be supplied unless there SEC. The reason for · this provision is not to·keep operations secret. This very di are reasonable assurances that the per that r'egistration with the SEC guaran vergence in viewpoints seems to me to il sons who furnish the money will be kept . tees quality, but that it does insure ·the lustrate the need for the legislation. informed as to its use. Yet, at present, availability and release of adequate informa The detailed studies completed by the under certain circumstances, manage tion. Securities and Exchange Commission in ment may, and in many instances does, I believe that all responsible trustees 1946 and 1950 force the conclusion that ignore its stewardship obligation to ren of other people's money must agree with this bill is timely and necessary. I will der a true account of the business, and it the basic aims of the legislation. There not itemize the findings contained in thereby closes o:f! one of the most im may be some di:f!erences of opinion con those studies, for copies of the reports portant means of stimulating interest in cerning the scope of the bill and its pre themselves are readily available. I should the· development of the business-pub cise language-these I intend to adjust like to emphasize that these studies - licity. Except when stockholders resort where necessary-but I have heard no represent an analysis of typical unregis to expensive litigation, management's attempt to justify the random character tered corporations. There may be some freedom to follow purely selfish impulses and unequal application of the present which follow better practices. And I am is largely unrestricted when the com laws. If it is in the public interest to sure there are many in which manage pany's securities do not happen to be sub require corporations to inform their se ment is even less sensitive to their fidu ject to the Securities Exchange Act, the curity holders about such matters as ciary obligations; for only corporations Public Utility Holding Company Act, or their present financial condition, the making some financial material avail- · the Investment Company Act. S. 2408 is able to their security holders were 1 background of the persons proposed by designed to provide the assurances neces management as directors, and the trad examined. Those which did not even sary to keep open the pools of public ing in securities of the corporation by respond to a request for copies of their capital. . management, it seems to me that this financial statements could not be I It is not without significance that the information should also be required with studied. Moreover, the Commission was 1949 survey of consumer finances spon respect to · 1arge publicly held corpora able to obtain access only to a limited sored by the Board of Governors of the tions not so listed. amount of proxy material. Though seri-. , Federal Reserve System disclosed that I have been heartened by the extent ously deficient, this material probably the most important deterrent to invest and character of support for the bill. represents a better than average selec . ment in common stocl{s is a lack of fa The financial community, · which pre tion. ,miliarity. Familiarity may be achieved sumably knows the problems of invest Approximately one out of every six ; only by open and free disclosures of the ors, has given its almost unanimous of the companies examined failed to important factors a:f!ecting :financial approval. Organizations such as the In furnish its stockholders with one or : health. Distrust and reluctance to in- vestment Bankers Association, the Na more of the three basic financial st ate vest breed in an atmosphere of secrecy. tional Association of Securities Dealers, ments necessary for even a rudimentary s. 2408 is designed to remove these bar the National Securities Traders Associa analysis of the state of the business. riers between the investor and his cor tion, the New York Society of Corporate · These are a balance sheet, profit and loss poration. Analysts, the National Association of statement, and statement of surplus. ) Even among experienced, sophisti Investment Companies, tne New York Many companies so handled their re cated financial advisers and analysts Stock Exchange, and the New York Curb serves that it was impossible to deter there appears to be a reluctance to com Exchange sent representatives to testify mine, even with a balance sheet, the - ' mit large sums to the care of corporate in favor of the bill. When organizations company's net worth. For example, one management which does not make the of this character-conservative, respect company with assets of over six and a minimum complete disclosures I have ed members of every community-agree half million dollars had a reserve for l mentioned. I · recently saw a compila- that legislation suggested by a bipa.rti contingencies of two million, two hun..; ' tion of the common stocks held by in san Commission of the Federal Govern- . dred thousand dollars and did not ; vestment companies. The 50 favorite ment is essential, it seems obvious there mention any specific contingency for ·stocks, which represented 36 percent of which provision was made. Let me make must be compelling reasons for the en~ their entire common stock portfolio, it clear that these do not represent 1 actment of the legislation. .were all stocks of companies subject to cavils about fine points of accounting the requirements of the Securities Ex- I think it js a remarkable thing when practice. Not only do such practices ' change Act. Of course, a large portion the leaders of an industry agree with result in depriving the owners of the 'of the remaining portfolio also consisted the agency which the· Congress has cre business of essential information about of the stocks of registered companies, · ated in that field as to the merits of a their company, but they create oppor leaving a relatively minor fraction of legislative proposal. It reflects favorably tunities for concealed manipulation of on both Government and industry, and security holders' right and they deter holdings of unregistered securities. The sucli a spirlt of cooperative give-and 1 testimony of the representatives of the investors from risking their capital by National Association of Investment Com take should be encouraged by the Con making investment in such companies a panies in support of S. 2408, the former gress. Of course, opposition was ex blind adventure. Governor of Maine, Mr. William T. pressed; I would not be fairly describ The proxy soliciting practices of these Gardiner, appears to confirm my obser ing our committee hearings unless I dis companies also represented, in most vation. closed that fact. But I can fairly say instances, an insensitivity to the rights that the opposition was based predomi I Of interest in this connection is th~ of the owners of the enterprise. There report prepared by the Trust Investment nantly on misunderstanding of the bill was a minimum of disclosure and a max Study Committee ofthe New York Bank- and of its provisions for exempting com imum request for blanket authority. The ' ers Association. This study was begun panies and transactions not within its typical notice for the election of directors in 1946 and corr.pleted in 1949. It recom purposes. I have tried to make it crystal did not give even the names of the di mended legislation, which has since been clear to all concerned and I reiterate, rectors in office or those proposed for adopted by the New York Legislature, that it is nJt the purpose of the bill to the ensuing term. One of the items of for the revision of the list of securities restrict business; everyone who foresees business in one-third of the stockholder in Which trust companies might place any problem in compliance is urged to meetings was the approval and ratifica the funds committed to their care to in make his problem known. I want this to tion of all acts of management since the clude bonds and stocks listed for trad be a truly representative and fairly op preceding meeting but the nature of ing upon an exchange registered with erating piece of legislation. Such op these acts was in no instance disclosed the Securities and Exchange Commis- position arguments as were voiced were a procedure tantamount to a fiduciary'.s 1950 CONGRESSIONAL RECORD-· SENATI: 151H request -for a blank check to cover his .the minority stockholders compelled the culiar means of knowledge gives them past and undisclosed withdrawals. insider to return almost a half-million the exclusive power of determining. As The typical proxy form had provision dollars of profit made as a result of such early as 1858 a British court held crimi for only a "yes" vote upon matters to be short-term trading. In another in nally liable directors of a British bank decided at the meeting. I should like to stance, involving an unregistered se who published a false balance sheet, paid quote from an article by Robert ·P. Van .. curity, I am informed that insiders made dividends when no profits were made, derpoel, financial editor of the Chicago a three and one-half million dollar profit and purchased bank shares with bank Herald-American, which appeared on ·1n 2 months. All the profit in such money to keep up the price. May 3, 1949: trading, of course, was at the expense Many corporations, although not now On May 10 stockholders of the Camden of the security holders. There is no rea subject to the disclosure requirements of Forge Co. will be asked to approve an son why this basic fiduciary obligation to the present law, have voluntarily em amendment to the concern's certificate of in.,; avoid profiteering from inside informa braced the principles of S. 2408. I be corporation, changing the tenure of office of tion should be imposed only upon of lieve this represents the predominant at directors from 1 to 3 years with only ficers, directors, and 10-percent stock titude of responsible management, which one-third of the board to be elected each holders of registered companies. I be recognizes the enormous benefits which year. lieve the prohibition against such shock Unlike the Montgomery Ward & Co. flow from full disclosure. The trend in charter, which permits such change by ma ing conduct should apply to all large this direction is expressed in the May 29, jority action of directors, it is necessary for publicly held companies. 1950, issue of the Investment Digest un two-thirds of the Camden Forge stockholders I have listened to all of the testimony der the column March of the Markets, as to approve before this backward step can be upon S. 2408. I have made an exhaus follows: taken. tive inquiry into the need for such legis This trend toward complete disclosure is It is unthinkable that stockholders will lation, and I have had a voluminous not the result of SEC or compulsion of any ratify the proposal. One businessman, in correspondence upon it which I have sort. It's simply becoming evident to a sending in his proxy against the plan, studied carefully. I have found no greater number of wide-awake businessmen described it as "an undemocratic corporate that it pays. subterfuge to perpetuate management in sound argument against enactment of office." the· bill. As I have mentioned, such op The vice president of one of our great In this particular instance, the manage position as appeared arose largely from business enterprises recently sent a ques ment, with arrogant disregard of fair treat misunderstanding. For instance, one tionnaire to a group whose business it ment of stockholders, makes no provision company expressed the view that the was to analyze investments, inquiring: on the proxy for a negative vote. bill, if passed, would require it to lis~ Under normal circumstances the Securi "What was the most important thing ties and Exchange Commission would pre its stock. No such requirement is in the management could do to mold the in vent such a one-sided presentation, but inas bill and none is proposed. On the con vestors' attitude in favor of a company?" much as Camden Forge stock is not listed trary, the bill seeks to maintain a bal He summarized the answers in two on a registered securities exchange the SEC ance between the exchange markets and words. These words were "Full disclo lacl~s jurisdiction over its proxy solicitation. the over-the-counter markets so that sure." Undemocratic corporate managements, neither one will have an unfair advan If S. 2408, which is essentially a full intent upon concentrating more and more tage over the other-and the· acid test disclosure bill, is enacted, I predict power in their own hands, serve to weaken of this is that the representatives of both the American system of private enterprise. financing will be · both cheaper and markets appeared and testified in favor simpler. This was plainly indicated by mede !~lands. One is Russian territory to vote for statehood for Alaska though to have a conference regarding the and the other is United States territory. he had voted for statehood for Hawaii method of ending the session? Mr. O'MAHONEY. That is correct. and said he had changed his mind about Mr. WHERRY. Mr. President, will Mr. MAGNUSON. But they are in Alaska and would support statehood for Senator from Oregon yield? habited by the same tribe or band of Alaska. Mr. MORSE. I yield. Eskimos, natives. Each year the natives We have the votes, and as chairman Mr. WHERRY. The only conference from Little Diomede go to Big Diomede, of the committee I intend to make cer we have had was a very informal dis or vice versa, for a sort of tribal get tain that the Senate will have the op cussion one day last week. At that time together. portunity of considering the bills. I understood the majority leader to say • Last year was the year when the Amer Mr. WHERRY. Mr. President, will that when the majority had a program ican natives' turn came to go to the the Senator from Oregon yield? ready respecting adjournment they Russian island. When they got there Mr. MORSE. I yield. would submit it to the minority side; they were seized by the Russians and Mr. WHERRY. In view of that state that we would be advised of what the held captive. They were questioned day ment by the senior Senator from Wyo majority wanted to do. I am not in any after day. One of them who had been ming, I ask him: Is it now his intention way at this time attempting to say what educated in the States could speak Eng to move at some time before the Senate we should or what we should not do. I lish and understand a little Russian. He adjourns or recesses this week-which simply say that if it is the intention escaped and returned, and made a state we have been led to believe would oc of the Senator from Wyoming to move ment of the purport of the Russian ques cur-to take up the statehood bills for to take up the statehood bills-and tions. The questions were, "What kind Hawaii and Alaska? certainly he would make no such move of government is there in Alaska? Is it Mr. O'MAHONEY. Mr. President, I unless he expected to go through with a Territory? Is the Governor appointed am confident that the majority leader it; he would not merely go through the from Washington? Are the people self on his return will move that they be motions-I should like to know of it as sustaining? Do they have independ taken up. I am confident that the act soon as possible. Senators on this side ence?" Question after question along ing majority leader, as soon as the op of the aisle have been making plans on that line was asked him. The Russians portunity is presented, will make the the theory that there might be an ad still believe that Alaska belongs to them, motion. journment or recess taken at the end of that we cheated them out of Alaska. Mr. WHERRY. I am not attempting this week, and they would then have to change their plans. This is preached to the Russian people. to secure a commitment. If that is to They are told that we treat the people be the program it will affect the ques Mr. McFARLAND. Mr. President, of Alaska as colonials. will the Senator from Oregon yield to me tion of adjournment on Saturday. to make a st&tement? Mr. O'MAHONEY. The Soviet Gov Mr. O'MAHONEY. It will. ernment has declared that the govern Mr. MORSE. I yield. ment of the Czar had no right to sell Mr. MAGNUSON. It will affect it and Mr. McFARLAND. Senate bill 3295, Alaska to the United States of America. should affect it. the Railway Labor Act amendment bill, They are bringing that up now. It is a Mr. WHERRY. I know there are Sen which is the unfinished business, has part of their propaganda. It is true that ators on this side of the aisle who do not been temporarily laid aside for the con the people of Alaska have territorial gov want Congress to adjourn-we might as ference report on the slot-machine bill. ernment. It is true that natives are well be honest about that matter-and The latter is, of course, a privileged mat elected to the Territorial legislature. It the statehood bills are the bills to which ter. Two or three other conference re is true that under Governor Gruening they want consideration given. I have ports will be taken up. It is definitely there has been co~plete equality and not been in on the Democratic confer on the agenda that the statehood bills complete recognition of native rights. ence, so I do not know exactly what has will follow the disposition of Senate bill Nevertheless, the denial of statehood to been done. 3295. these people will be made the vehicle Mr. O'MAHONEY. That has been an The Senator from Washington [Mr. of Russian propaganda in the Assembly oversight. I spread my arms to welcome MAGNUSON] a moment ago asked both the of the United Nations. the Senator. majority and the minority what was pro It was my understanding that the Mr. WHERRY. I thank the Senator. posed to be done. Of course, no one opening of the Assembly of the United I will attend the next meeting on that knows what the Senate of the United Nations today was delayed until late this invitation. I wish to say, hov.rever, that States will do, for it is composed of 96 afternoon in order that the Russian rep we have been led to believe that on Sat Senators. If they decide to recess, or resentative, Mr. Vishinsky, could arrive urday night a motion will be i;nade, either decide to adjourn and go home, that before the meeting was opened. that an adjournment sine die be taken, decision, of course, will be binding. But There is not a Senator on this floor or to-adjourn to ai day certain. Many it was thought it would not be advisable who does not know the technique of Mr. Senators are making their plans with the to try to determine when we would take Vishinsky. Are we going to put ammu idea that that procedure will be carried an adjournment until action on the con nition in his hands for propaganda out. If it is the intention of the senior ference reports had been completed. among the Asiatic nations? Of course Senator from Wyoming to move to take When action on the conference reports we are not. up the statehood bills I will say, know has been completed the determination The trouble is that these Territories ing the persistence of the Senator from will be made as to when it will be ad are not represented in this body, and Wyoming, that that means the Senate visable to adjourn. In the meantime therefore every Member of the Senate, should not even consider getting out of the statehood bills remain on the agenda, with his own problems on his mind, and here on Saturday night of this week. following the disposition of Senate bill with national problems on his mind, Mr. O'MAHONEY. I may say, with 3295. finds it very easy to put aside the ques the indulgence of my good friend from Mr. President, I think the Senate has tion of Alaska and Hawaii. But the Oregon, that the Senator from Nebraska moved along as fast as it could. The committee of which I have the honor to expressed the opinion that he expected Senate of the United States does not be chairman is clothed with the respon sine die adjournment. always move as rapidly as some may sibility of acting upon these measures. Mr. WHERRY. Oh, no. I simply want it to move, and perhaps more We received the bills when they came stated that if it was proposed to take up rapidly than others would like to see it from the House. We held hearings on the statehood bills that would shelve any move. But it is a democratic body and them. We gave the bills close study. sine die adjournment or recess possibly it is a good one. I do not think we We improved the bills; I think there. can at this time. I am not taking issue with should complain too much about the be no doubt about that. The Delegates respect to the bills. All I say is that if action of the Senate. I think we are from Alaska and Hawaii say that the the Senator from Wyoming is serving making progress as rapidly as possible. bills are much more acceptable now than notice that he will move to take up the Mr. MAGNUSON. Mr. President, will they were in the form in which they bills, which he has a perfect right to do, the Senator from Oregon yield for one came to the Senate. We have done there is no use of attempting to adjourn further suggestion? our work in the committee. Yesterday this week, either by sine die adjournment Mr. MORSE. Yes. I was happy to find that the senior Sen or to a day certain, or in any other way. Mr. MAGNUSON. In view of the en a tor from Oregon [Mr. CORDON] took the Mr. MAGNUSON. When do both tire situation, if we decide to recess-I floor-he in committee had been unable . sides of the House and the Senate expect do not think we should adjourn sine l5118.. ' CONGRESSIONAL ~ RECORD.-SENATE SEPTEMBER 19 ~ die-it might be a very proper thing to staff of experts has done the prelimi the close of business today, the resignation make the Hawaiian and Alaskan state nary work for us in Alaska, making .it which you tendered in.your letter of Septem hood bills the unfinished business, and possible for us to continue with the inves ber 13. then, when we return at the end of the tigation on the basis of their preliminary HOWARD'S SERVIbE IS PRAISED . "Although your letter named September 13 recess, pass the bills. That might be findings. I understand that we are to as the effective date for the relinquishment satisfactory to everyone concerned. be honored by having with us on that of your post. I am moving up that date in Mr. McFARLAND. That will have to trip also the distinguished senior Sen accordance with your further desire orally be determined in the conference which ator from Washington [Mr. MAGNUSON], expressed to be relieved of tulltime duty as will be had after the conference reports who now is presiding over the Senate. soon as possible. I am grateful for your con on the tax bill and the subversive-activi 01) behalf of tne committee, I wjsh to sideration of the public interest by contin - ties bill are presented. assure him that we shall welcome hav: ing your availability in an advisory capacity until the end· of the month. Mr. MORSE. Mr. President, I have a ing him associated with us on the trip, "Accept, please, my heartfelt thanks for · few points I desire to cover on a series and we shall appreciate having him the superior service which you have rendered of subjects. I shall endeavor to be very there because of his great knowledge of the Government during a particularly criti brief about them. Alaskan problems, . cal period-a service for which your previous First, I wish to associate myself with Mr. President, I desire now to refer experience gave you exceptional knowledge the remarks made by the Senator from to another subject. and resources. Your contribution to the na Wyoming and the Senator from Wash The PRESIDING OFFICER. The tional security has been invaluable." Mr. Howard was named for the board chair ington on the two major points they Senator from Oregon has the floor. manship last November. Before that he was made. I agree with them that it would THE PREPAREDNESS SUBCOMMITTEE chairman of the Personnel Folley Board of be a great mistake for the Senate to ad AND THE MUNITIONS BOARD the Department of Defense. He was a Chi journ sine die. I think we owe it to the cago coal company executive. responsibility of our posts and we owe it Mr. MORSE. Mr. President, what I On September 7, the Munitions Board was to the American people to recess to a really arose to discuss very briefly is an strongly criticized by the Senate Armed Serv date certain, subject to immediate call article entitled "Howard Quits Post in ices Preparedness Subcommittee and reports prior to that date in case national ex Munitions Board," which appeared on predicting Mr. Howard's resignation became igencies warrant our being brought back. page 20 in this morning's New York current on Capitol Hill. The subcommittee I believe that to be very important Times. I ask unanimous consent to have which took over the role of the old Truman the entire article printed at this point in Senate War Investigating Committee, de:. from the standpoint of national morale. clared that the Board lowered, rather than In my opinion the American people are the RECORD, as a part of my remarks. raised, the volume of rubber acquisitions for deserving of the reassurance that their There being no objection, the article stockpiling. . elected representatives in, the Congress was ordered to be printed in the RECORD, as follows: PRESIDEN;l' APPROVES BILL of the United States are continuing on The subcommittee also reported· that it the job, even though they may take a HOWARD QUITS POST IN MUNITIONS BOARD- sought and obtained President Truman's recess to a date certain. CHAIRMAN RESIGNING PRAISES JOHNSON support in-halting the sale of a Government Secondly, I join with the Senator TRUMAN NOMINATES MARSHALL AS DEFENSE owned rubber plant in Akron, Ohio, and had from Wyoming and the Senator from HEAD "prevented the further disposition of other Washington in regard to their emphasis (By Anthony Leviero) Government property having a wartime use upon the importance of early action on WASHINGTON, September 18-President or potential." Truman terminated today the services of Mr. Truman signed this morning the law the statehood bills. I am supporting Hubert E. Howard, chairman of the Muni passed last week that authorized the ap those bills for a great many reasons, but tions Board, who in his letter of resignation pointment of General Marshall as Secretary I think the primary one and the sum referred to Louis Johnson, Secretary of De of Defense. Under the National Security cient one is that from the standpoint of fense, as a great administrator. Meanwhile, (Unification) Act of 1947, professional mili national security these two Territories the Chief Executive legally paved the way to tary officers cannot be appointed to the should become States. As a member of · appoint General of the Army George C. Mar office unless more than 10 years has elapsed the Military Preparedness Subcommit shall as Mr. Johnson's successor. since their last active service. Having The President also signed a law authoriz cleared away this legal obstacle, Mr. Truman tee of the Armed Services Committee, ing a five-star rank for Gen. Omar N. Brad then· sent the formal nomination of the gen about whose work I shall have some ley, and then sent a formal nomination to the eral to the Senate for confirmation. thing to say in a moment, I wish to say Senate to confirm ·the chairman of the Joint Tomorrow the Senate Armed Services Com that I am satisfied that the lack of ade Chiefs of Staff as a General of the Army. mittee will meet at 2 p. m .. to consider the quate defenses in Alaska and the threat Mr. Truman was brisk in accepting the res nomination. · to the security of the Nation because ignation of Mr. Johnson's partisan, although After signing the eanabling act relating to· of that condition would never have the amenities were observed in the exchange· General Bradley, Mr. Truman sent bis nomi come to pass if the people of Alaska had of letters. nation for five-star rank to the Senate. When been represented in the Senate of the "It is with deepest regret that I have . he is confirmed, General Bradley will join United States by two Senators, and in learned of your acceptance of the resignation the group of war leaders who have received of Mr. Louis Johnson, Secretary of Defense, a that rank: Generals of the Army Dwight D. the House of Representatives by a Rep man whom I consider one of the great ad Eisenhower, the late Henry H. Arnold, George resentative. ministrators of the country, and for whom I C. Marshall and Douglas MacArthur; and It is simply inconceivable that the have the highest personal regard," wrote Mr. Fleet Adms. William D. Leahy, Ernest J. elected representatives of the people of Howard. King, Chester W. Nimitz, and William F. Alaska, with the power to vote in the RECALLS PLEDGE OF YEAR SERVICE Halsey. Congress of the United States, would "When I came to Washington last fall at Mr. MORSE. · Mr. President, I call ever have permitted the defenses of the request of Mr. Johnson, I promised him particular attention to the following Alaska to reach the low point they have I would spend a year in Government ·service. paragraph or two about which I wish to reached. We have been forewarned of That year has expired 1 September 1950. make special comment: the ·situation for some time past. The "I herewith tender my resignation as chair man of the Munitions Board, Department of On 'September 7, the Munitions Board was Congress has not taken the steps which strongly criticized by the Senate Armed should have been taken. In my judg Defense, effective at your earliest convenience and, I hope, not later than September 30. I Services Preparedness Subcommittee and re ment, the executive branch of the Gov cannot do this without expressing my grate ports predicting Mr. Howard's resignation ernment has not taken the steps which ful appreciation of the opportunity you have became current on Capitol Hill. The sub should have been taken, to build up the· given me to serv.e." committee, which took over the role of the defenses of Alaska. Mr. Howard wrote this letter last Wednes olll Truman Senate War Investigating Com The situation is so serious that the day, the day after Mr. Truman forced Mr. mittee, declared that the board lowered, Military Preparedness Subcommittee of Johnson to resign and received from the rather than raised, the volume of rubber the Senate Committee on Armed Serv Secretary of Defense a letter acknowledging acquisitions for stockpiling. ices has taken cognizance of it, and this that he made more enemies than friends PRESIDENT APPROVES BILL week is sending to Alaska members of while in that office. The subcommittee also reported that it its professional staff to start the investi Mr. Truman replied to Mr. Howard as fol sought and obtained President Truman's lows: support in halting the sale of a Govern gation which the subcommittee has au "Knowing your desire for expeditious ac ment-owned rubber plant in Akron, Ohio, and thorized; and three members of the sub tion and appreciating the fact that you have had "prevented the further disposition of committee will go to Alaska next month· completed the year of service which you other Government property having a wartime for hearings on the ground, after our undertook to perform, I accept, effective at use ·Or potential." 1950 CONGRESSIONAL RECORD-- SENATE 15119 The comment in regard to the action and the chairman of our subcommittee in passing in order to make the recorq which the Board took in connection with and I may make clear that if he were perfectly clear, and in order that no the particular rubber plant referred to on the floor, he would not take excep tice may be served that we expect the and other surplus-property plants is cor tion to anything that I have said in the Munitions Board to carry out the true, rect. course of these remarks-on the ques clear obligations inherent in the respon It will be remembered that a short tion as to whether the committee sibilities which have been imposed on it time ago I commented on a large and planned or desired to go forward with and assigned to it in the Unification Act. costly advertisement which was pub the hearing this morning. The chair It is true, some of us are satisfied that lished in at least one Washing.ton news man of the subcommittee reached the America's defense would be in a much paper-and I do not know how many decision-and I think rightly, subject to' stronger position today if the Munitions. other· newspapers-by the General Tire further discussion in the future on the Board had been doing a much better job Co., criticizing a news commentator who part of members of the committee than it has been doing in connection in a broadcast raised a serious question that, at least as of now, such a hearing with both the surplus property problem in regard to the desirability of selling should not be held, but that the staff and the stockpiling problem, as well as that rubber plant to the General Tire of the committee should pursue a further the other duties which were assigned to Co. for the purpose of the manufacture and even more thorough inquiry into the it. I sincerely hope that other depart of plastics. policies of the Munitions Board. It ments of the Government will take note The subcommittee of the Senate would also seem to me fair and proper of the record which the Military Pre Armed Services Committee, commonly that we await the appointment of the paredness Committee has made to date, known as the "watch-dog committee," new Chairman of the Munitions Board and that they will fully understand from proceeded to make inquiry not only into before we reach any further official con that record that the members of the sub the policies of the Munitions Board in clusion, at least in the form of a formal committee intend to proceed on each regard to this particular matter, which report on the part of the subcommittee problem that it takes under investiga apparently had been sanctioned by the in respect to the policies of the Muni tion with a thorough study of the facts. Munitions Board but also into the poli tions Board. We intend to permit the facts to speak cies of the Board in connection with sur What I would stress now, as a mem for· themselves and also to permit the plus· ·~Jroperty matters in general, ·and ber of the subcommittee, speaking en facts to fall upon all heads concerned stockpiling in particular. tirely for myself, is that it be recognized with ~he facts, irrespective of conse The information and evidence which by the administration that the position quences, because we believe that as the the investigation by the subcommittee of the Chairman of the Munitions Board elected representatives of the people brought forth was partly the basis of the should be considered pretty much as that we have a serious duty to perform for first report of the subcommittee, which, of chief of staff for economic and in the American people, namely, the duty as the New York Times article. accu dustrial mobilization, just as we have a of seeing to it that we function as an · rately points out, was a report which Chief of Staff for military mobilization. effective check upon various depart met with the approval of Mr. Symington, It is of the utmost importance that the ments, agencies, and officials, who have and, through the President's endorse exceedingly responsible position of responsibilities in connection with the ment and sanction of a letter of instruc Chairman of the Munitions Board be defense program and the war program, tions which Mr. Symington sent out, carried out by someone who thoroughly both on the military mobilization side based upon the report of our subcom understands that the job is that of chief and on the side of economic and indus mittee, it can accurately be said, I think, of staff of economic and industrial trial mobilization. that the report also met with the ap mobilization. Members of the subcommittee, based proval of the President of the United As one who participated very on the information which has been made States. thoroughly in the preparation and hear available to us on a great many mat However, the report did not begin to ings and debate on the so-called unifica ters-and I am sure I now bespeak the disclose all the evidence and information tion bill, the junior Senator from Oregon point of ·view of all members of the com which the subcommittee had gathered in thinks he is in a position to say with mittee-would have the American peo regard to the policies of the Munitions some assurance that the Munitions ple take stock of the seriousness of the Board. There was other evidence which Board features of that law never con crisis which confronts us, and of the caused many of us to believe that at least templated that the Chairman of the importance that all groups within the a prima facie case existed against the Munitions Board should be the repre Nation proceed on a united front to do efficiency of the Munitions Board in sentative of American industry. It was whatever may be necessary and make handling its responsibilities and duties not devised in order to give industry or whatever sacrifices may be necessary in prior to the Korean War, and therefore any other group a partisan voice in the order to place the United States in the the committee scheduled a hearing, policies of the Munitions Board, any more strongest possible defense position in which was to have occurred this morn than labor or agriculture or any other the shortest possible time, because we ing at which hearing it was intended to economic group was intended to have an ·believe that is the surest- guaranty we go 'into the record of the Munitions economic-group voice or representation have of being able to check the possibil Board in connection with the entire in the program for economic and indus ity of a third world war. problem of the defense program and the Mr. President, I now come to another part which the Board played or did not trial mobilization. It was contemplated that the Chair subject. play in it. man of the Munitions Board should be a The PRESIDING OFFICER. The The junior Senator from Oregon an man of such great stature and ability Senator may proceed. nounced some days ago, at an earlier NATIONAL LABOR RELATIONS BOARD hearing of the Board, that it was his in and experience that he could be counted tention, when we got into the investiga upon to understand thoroughly the com Mr. MORSE. Mr. President, various tion of the Munitions Board matter, that plex problems of American industry and members of the press have asked me for all the testimony of all the witnesses be the intricate steps which must be taken an answer to a question which I have not taken under oath. In fact, it is the in in order to mobilize successfully the yet given them. I now give it to them. tention of the junior Senator from Ore economy and industry of the Nation for a The question has been raised as to gon from now on ·to insist upon that successful prosecution of a defense pro whether or not the motion which the procedure. I think it is very important gram or of a war program, if war should junior Senator from Oregon made in a that the committee make perfectly clear come to pass. The guiding principle and meeting of the Subcommittee on the La that we mean business when it comes to the controlling obligation of the Chair bor-Management Relations, which was checking into the problems of efficiency man of the Munitions Board should be, adopted without objection, calling for an and honesty and effectiveness of the Mu and must be, to develop a program which investigation on the part of the profes nitions Board in connection with the will serve the best interests of the coun- sional staff of the Committee on Labor prosecution of the defense program and . try, irrespective of the sacrifices which and Public Welfare of the National La the war effort, of which it is a part. it may call upon industry to make. bor Relations Board was limited to the The resignation of the Chairman · of It is not my intention, and I am sure office of General Counsel or was in the Munitions Board as of last night re it is not the intention of the chairman of tended to go to the policies of the Board sulted in a conversation between the the subcommittee, to dwell upon past and the practices of the Board, as ~.vell as general counsel of the Munitions Board mistakes, other thP,n to mention them of the office of the General Counsel. ·15120 CONGRESSIONAL ·RECORD-SENATE SEPTEMBER . 19 It was the intention of the junior Sen prive us of some of the benefits which billions for arms, we .. must also spend ator from Oregon, it was so understood we have enjoyed from having the FAO some few millions for promoting the best by the members of the committee, and centered here in Washington. But we long-time defense of _all-a well-fed the junior Senator from Oregon made it. should not let the move lessen our in world .. very clear: that the investigation should terest .in this great world agency, in the The goal of a well-fed world is a diffi cover not only the policies, practices, and formation and operation of which Amer cult one, but under the leadership of procedures of the office of the General icans have played such prominent parts. Ed Dodd, FAO can march steadily to Counsel, but the policies, practices, and Every one of our major farm organi ward it. procedures of the Board as well. In fact, zations has given solid backing to FAO. EXECUTIVE SESSION Mr. President, it was agreed yesterday They had a big hand in launching it. that the professional staff of the com They consider F AO as ~"their baby" Mr. McFARLAND. I move that the mittee should proceed with the prelimi among all the international organiza Senate proceed to the consideration of nary work and that' at a later date the tions. How much our farm organiza executive business. committee would decide whether or not, tions may differ on other matters, they The motion was agreed to; and the after Members of the Senate returned to are united in support of the Food and Senate proceeded to the consideration Washington, following either a recess or Agriculture Organization. of executive business. adjournment, we should ~roceed with FAO was born in this country in 1943. EXECUTIVE MESSAGES REFERRED public hearings. It is the opinion of the It is 2 years older than the United Na tions, and the first of the great world The PRESIDING OFFICER