4838 CONGRESSIONAL ·RECORD-SENATE MAY '23 Mr. REED of· New York, and Mr. Woo~ able, it is believed proper for the Joint Com SENATE RUFF of Michigan were appointed man mittee for Deferment of Legislative Em agers ·on the · part of the House at the ployees to file requests for legislative em TuESDAY, MAY 23,1944 ployees who meet these liberalized require conference. · ments. Post f-or May· 13 ·and 20, will never be the "four treedoms" about ~hich we have less sacrifice of. its people.· Stretched accepted by the American people as-their talked so much will become sheer phan over the f-ace · of the earth the mighty only . -safeguard against war and the tasies. · arm of our joint military command has threat of war. - Again, may I quote from the wisdom of wrought valiantly. From the fox holes '· ·Our misgivings increase not a little the late able Secretary of the Navy, Frank of the New Guinea jungles, through the when we are further told by Mr. Davis Knox: desert African wastes, on to the jagged ·that' "Stripped to the bare essentials we There comes a time in the life of every mountains of Italy, strong hearts and foUght· in 1917 and we-are fighting now, man and every nation when principles can hands have borne our Stars and Stripes to prevent the mastery of Europe by one not be sacrificed and when vital and essen on to victory. aggressive power. Should Russia, as tial rights can no longer be ignored, a tinie Now, while millions of our own men the sole European· power, display tend when to go further would mean that our own and women crouch in tense anticipation encies toward world conquest, our vital liberality and forebearance would be mis of the word which will plunge the human interests would again be called into understood. race into the most titanic and brutal account." What are our peace aims, Mr. Presi battle of all time; now, when every nerve What does this mean? Does it not dent, and do they bode good or ill? Do is strained to catch the first syllable of mean that World War No. -3 hangs on the they promise hope to a suffering and what will be for many of our men the slender thread of Mr. Stalin's future dis grief-stricken· world? Do they seek to in last· command they shall ever obey; now, position and good will? spire confidence in the future? Are they President Roosevelt, while the American We are amazed to read in the same universal in application, binding upon us people, whose servant and leader you article that you, our President, have all, permitting of no exceptions or reser profess to be, are gathering themselves learned thus far in thiS war: vations, tainted with no selfish or ulterior against the mighty shock of such a bat That hereafter only countries with an motives? 6r, are they a patchwork of tlE}-lift up your voice in a clarion call abundance of manpower and resources plus unprecedented and unpredicted neces proclaiming to the world that America huge industrial plants can engage in the sities which will merely postpone the final has taken the moral leadership of hu business of war. issue of war itself to the not too far dis manity int'o its heart and hands. Do you wonder that the American peo tant future? Why do you not take us, Now is the time. This is the hour. To ple. are uneasy over the prospects of peace your own people, into your confidence, morrow may be too late. Let our fight in the future? If such a lesson is put Mr. President? Is it because you wish to ing men the world around find new ~~W ·practice or .such ~olicie~ a~e con overwhelm us with joy when you suddenly meaning in their sacrifice and a deeper t:JP.\l~d much longer, with agitation for pull a patchwork peace settlement out inspiration in their striving. Lift them securing AmeriCan bases all over the of your hat, or is it because the monster up above the filth and grime of empty w.orld, with a demand to make the-Pacific which you have helped to breed has hopes and dreams and spur them on to a'Q. Aineri.can lake, it is little wonder that broken its leash and is now at large? victory. President Roosevelt, give the iAcreasingly. shall we feel ourselves being There is no neecl. for me to remind you word, and these men and women will giv.e drawn into a post~war world where no that the questions I am raising are born their lives to make your highest dreams man o_r nation will be safe unless guns of a deep devotion to our great America. come true. ~re carried on the hip .. From the first days when I saw the dark Let America speak. You are our lead . ·· The Washington Post of May 10 also clouds of war gathering over our heads er, President Roosevelt; speak the word ·carried a story of the three peacetime I warned our people of the danger that which will set American ideals burning . plans which the Navy has formulated in threatened and I have sought to do every in every heart, lift up our beacon of lib anticipation of almost any kind of situa thing in my power to support and hasten erty before the weary eyes of men. Pro tion to emerge from this war. As our preparations for our own adequate de claim to the ends of the earth that we Pr~sident, which of these plans do you fense. From that day in March 1937 seek to preserve American ideals and the contemplate will most nearly suit our when I, together with five of my col American way of life, that we seek to needs in the months and y'ears to come? leagues, voted against the enactment of restore the birthright of every human . In all this welter of uncertainty the the Neutrality Act, down through to the being as a creature of God, that we seek peopie of thes'e United States are con present hour I have vigorously supported a reconstituted Europe which is free vinced that any attempt to corner con every measure which would guarantee from terrorism, want, and despotism, trol of the interna.tional organization, the safety of American ideals and the that all peoples, so far as lies within our about which we have heard so much talk, .American way of life. power, shall have an equal opportunity is doomed to failure at the outset if ap President Roosevelt, it is on this rec to enjoy the blessings and riches of this peasement of a totalitarian state is made ord that I stand when I now respectfully life secure from the designing greed of the cornerstone of such a policy. urge you to proclaim to the world the any and every nation. Surely President President Roosevelt, we cannot see ideals for which you have thus far Roosevelt, we have no other peace aims what kind of a peace you are planning labored. Now is the time to reach an and we shall never be a party to the at after the military victory is won. On effective understanding with our allies tainment of any others. Again I re what basis will an organization for peace concerning the ultimate peace aims spectfully urge you to speak in the name r'est-on good will and understanding, or which guide our common efforts toward of the American people the hopes and on a continuance of armed might and the winning of this war. Now is the dreams which have so richly blessed this the balance of power? time to reach such a common goal. land we love. Every indication is that in order to When the last blistering bomb has burst, maintain any semblance of peace in the there is little hope that what we could THE GOVERNMENT OF LIBERATION IN post-war world we must become a mili not attain and effect under the strain YUGOSLAVIA tary people, with a military economy, and incentive of a common fellowship in Mr. WALLGREN. . Mr. President, a ready to strike at any moment, armed to a common cause, could ever be realized few days ago our South American ally the teeth, suspicious, arrogant, coercing through the cold and calculating concern and United Nations' partner in the war where we cannot win, condescending of nations turned in upon themselves, against the Axis, the great nation of where we cannot dare to be magnani brooding while they lick their wounds. Brazil, officially froze the funds held in mous. I urge you to proclaim to the world a that country in the name of the Royal And, Mr. President, what are you going statement of peace aims which are in Yugoslav Government in exile. For to do about all the promises that have keeping with the universal principles of some time now evidence has been mount been made as to how we shall feed and the Atlantic Charter, and expressed in ing to show th9,t the royal government in reconstruct and rehabilitate the world its plain and unmistakable language. exile is not an active ally in our war when the fighting stops? If we are going On a hundred battle fronts our young against fascism. to be compelled to continue to put our men and young women, the flower of In·my own State of-Washington in an resources into· armies and navies, our our manhood and womanhood, are joined action, perhaps the first on the North manpower under conscription, our in in battle with the foe. Surely no nation American continent, certainly the first duStry under the strain of producing ever has had more cause than ours to be in these United States, the State senate armaments, we shall never be able to ful proud of the splendid record of heroic unanimously passed a resolution calling fill even a small part of our promises, and achievement or of the untiring and self- upon the State Department not only to 4856 CONGRESSIONAL RECORD-SENATE MAY 23 freeze the funds held in this country by and are now increasing both their num to Partisan convalescent camps near the royal government in exile, but to ex bers and their' unity in the war of libera Cairo and on the Island of Sardinia, tend de facto recognition to the govern tion. It has been their glorious fight full lend-lease assistance should be ac ment of liberation in Yugoslavia, whose which has deprived Hitler of divisions corded this fighting vanguard of a provisional president is a distinguished in Italy which might have added to the democratic Europe. With this, they can Yugoslav jurist, Dr. Ivan Ribar, and difficulties of our own advance up the save hundreds of thousands of lives of whose marshal of its Partisan armies is Italian boot. If adequate military and our boys during the impending battles; Josip Broz, popularly called Tito. medical supplies and more food were With it, they can strengthen the will to To make the action of our State senate available to the Yugoslav army of lib resist among the peoples held in Nazi the more impressive, let me remind you, eration, Marshal Tito now estimates that, thralldom beyond the frontiers of Yugo Mr. President, that the State legislatur~ instead of merely 300 ,000, a million men slavia, in Bulgaria, in Greece, even in was then in extraordinary session to con and women could be aiding us in the Rumania, Hungary, and in Italy. The sider only the question of legislation to battle of southern Europe which is aimed short and easy step to strengthening one facilitate soldier voting. In fact, the at the inner fortress -of the crumbling of our greatest fighting allies in this war Governor of the State has specifically Reich. Marshal Tito himself, in asking is through recognition of the Govern requested that only that question be dis for additional aid, has prophesied that ment of liberation of Yugoslavia as the cussed. Nevertheless, so strong was with it the fighting armies of liberation sole agency on the soil of that country popular demand and so urgent the need of Yugoslavia could cross over into which is allied t.o us in our common bat that the senate, both parties of that northern Italy and eventaally join us tle against fascism. body consenting, suspended the rules in at the Po in a mopping up of the Nazi A preliminary step of considerable order to pass the resolution directed divisions now operating in Italy. importance can be taken now through toward the State Department and to the If there were any doubt left in our freezing the funds held in the United Foreign Affairs and ·Foreign Relations minds about the relative roles played in States in the name of tl:e royal govern-. Committees of Congress, urging Federal this war on Yugoslav soil by Marshal ment in exile, but which rightfully be action to freeze the funds field in the Tito and the Partisan forces, as against long to the people who fight for Yugo name of the Royal Yugoslav Govern Mihailovic, war minister of the gov slavia on Yugoslav soil. Brazil has led ment, and recognition, de facto or de . ernment in exile, and his so-called Chet the way, but it is for us to complete the jure, of the people's government of niks, that matter should have been task, for America bears an ·extremely Yugoslavia, officially known as the gov cleared up in an article by A. C. Cum heavy responsibility toward the people ernment of liberation. mings, cabled from London by the great of Yugoslavia. The funds which supply Why there should be any hesitancy on Southam Press to Canada on May 5. As the defamers of the goverm .ent of lib the part of the State Department to ex reported in the Vancouver Province, of eration and support the general who has tend recognition appears, to say the British Columbia, Cummings wrote, in given aid to the enemy, are funds held least, puzzling to me, in the light of re part: in American banks. It is a fact that cently disclosed facts. For example, on The Yugoslav military mission now in Lon while funds are also held in Britain in the anniversary of the birthday of don has left little doubt that General the name of the royal government in America's great citizen soldier and Mihailovic, leader of one group of Serb exile, it is the funds from America that liberator, Gen. George Washington, insurgents, and war minister in the exiled pay the salaries of King Peter and the Prime Minister Churchill, in addressing Yugoslav government, has been actively pro maintenance of his queen, the exiled German and has assisted the enemies of Princess of Greece. A sum, which·is es: the House of Commons in London, re Yugoslavia in many ·ways. vealed that Marshal Tito and the Parti timated at approximately $500,000 a san forces have been our allies in Yugo Apparently the royal exiled govern year, including maintenance, gives Peter slavia, while at least detachments and ment in London finally has repudiated the dubious honor of being the second commanders under General Mihailovic Mihailovic for his aid to the enemies of highest paid ruler in the world, and one have been aiding the Nazi enemy. The the Yugoslav people and the United Na who apparently dares not return to his Prime Minister of Great Britain quite tions. Until recently there was an ef native .soil. So apparently callous is the obviously should be in possession of fort on foot to rehabilitate the debunked Royal Yugoslav squanderbund in Lon the facts . . His son, Capt. Randolph Mihailovic myth. don, that when funds were being raised Churchill, at last report, was on duty It may not be long until, not a few, to give small aid througb war chest with the Partisan armies in Yugoslavia. but many in the American and British drives to the fighting forces of the In that same speech, Prime Minister Armies will know the truth about Yugo Partisan army, King Peter contributed Churchill stated that more than 250,000 slavia. It is no secret that on D Day, not a dime in behalf of the suffering soldiers, men and women, were fighting or soon after, we may find our armies democratic peoples of his own homeland. in the ranks of the Partisan Army of invasion on Yugoslav soil, fighting to Recently Marshal Tito requested the against the Nazis. He revealed that the reach the southern bastion of Hitler's immediate freezing of the funds of Yugo Partisan forces, including the guerrilla shrinking fortress in Austria. When slavia now held by the Royal Yugoslav arm of the army of liberation, had been that day comes, unless Mihailovic can Government in exile. So. far, only engaging 14 of an estimated 20 Nazi be rehabilitated diplomatically, it will . Brazil has answered that request with· divisions in the Balkans. be impossible for the Government in ex action. In the light of the facts, can From the Prime Minister's own words ile to maintain control over the more we do less than the people of Brazil have I we can therefore estimate what a debt than $90,000,000 to which they now have done? Certainly Marshal Tito, who is we owe to these Yugoslav patriots who, title, because they are the recognized called the George Washington of Yugo after their official government had fled Government of Yugoslavia. It is tragic slavia, and is considered one of the great the on-rushing · Nazi panzers, started irony that the money now being spent in generals of this war, deserves at least the from scratch to form a people's army propaganda in the United States-the negative aid in his battle for us which and, through it, to establish the first money which in addition is being freezing of the funds held in America in second front in Europe. Bereft of arms squandered in exaggerated salaries for the name of the Royal Yugoslav Gov and robbed of a questionable leadership the king and his courtiers-is money ernment could now give. by retirement from the scene of action which the . people of Yugoslavia badly Personally, like my own friends in the of King Peter and his courtiers, the peo need to aid us in defeating our common Washington State Legislature, and the ple of Yugoslavia-Croats, Slovenes, Ser enemy, Hitler's Reich. thousands more in all walks of life jn bians, Montenegrins, those on the Dal Tito and the Partisan armies need my State, who are members of the Amer matian coast and from the isles of the military and medical supplies now. ican Committee for Free Yugoslavia, I sea-united to wrest from the enemy the Their struggles for us on the field of hope the United States will do much arms by which they fought the enemy battle, their sacrifice of life's blood, have more officially. I will not be satisfied, himself. earned for them the right to be t«eated and I am sure that any who will investi Like our Continental Army of the Rev as equals among the United Nations. gate the truth about Yugoslavia will not olution, fighting for similar aims, they Today, instead of occasional aid in the be content, until de facto recognition is have been through a long Valley Forge, form of international charity distributed extended to the government of libera- 1944 CONGRESSIONAL RECORD-S.ENATE 4857 tion which fights with unparalleled thy maintenance of the constitutional What are we doing to impact the seg bravery and against great odds with us system of checks and balances. ment in our midst? I belie'i-..3 that a Sen against Hjtler, and which fights for a Mr. President, I repeat, we all recog ate committee should be created for the post-war democracy throughout the Bal nize the awful power of ideas to change purpose of making a thorough investiga kans, which, while recognizing the right a world, but I should like to ask, What is tion of this whole subject. After the in of private property, will end the threat being done to change the ideas of the vestigation has been made it should file of imperialism and of new wars sweep German prisoners who are in this coun its findings with the Senate, such find ing from a Balkan tinderbox throughout try? Those prisoners, when the war is ings to recommend, among other things, the world. With the fighting Partisan over, will go back into Germany. Will what educational program should be put armies we can best say, "Death to Fas we have sold them the validity of re into effect now. I am certain that from cism! Liberty to the people!" and mean publican ideas, or will we miss that boat? such an investigation valuable informa it by officially freezing the funds held Will they still be creatures of Hitler's tion could be obtained that would throw in America in the name of the Royal philosophy when they get back to Ger light upon the procedure that should be Yugoslav Government in exile, and by many, or will they become disciples of followed in Germany when the war is speeding the de facto recognition of the the American concepts? over. government of liberation. What educational program, if any, are We know that the Goering youth are REEDUCATION OF THE GERMAN PEOPLE we putting into effect within these prison already educated and being prepared THROUGH GERMAN PRISONERS OF WAR camps? The Congress of the United mentally for the next war. If these Ger States has no information as to what we man prisoners could go back into Ger Mr. WILEY. Mr. President, on one are doing, We are unacquainted with many reconverted to a keener appre:cia occasion Mr. Justice Oliver Wendell the facts relating to the conditions un tion of spiritual, human, and cultural Holmes said something to this effect: der which German prisoners are held values, and the value of democratic ideas "The thinker of today controls the fu captive within the United States. We and ideals, this might provide the very ture." The great football coach, Knute know of no educational program relat ferment that would antidote the phi· Rockne of Notre Dame, said something ing to the welfare of those prisoners, or losophy that has been bred into this new similar when he said "The idea is the what is being done that they may be generation of German youth. thing." You and I, Mr. President, have come disciples of liberty when they re What are we doing about it, Mr. Presi seen the awful power of ideas-wrong turn to their mother country. There dent? Are we asleep? Are we failing to and right ideas-change a world since are, I am informed, more than 200,000 grasp this great opportunity which is we came to the Senate. This new world German prisoners in this country, which now at hand? order we hear so much about cannot be fact constitutes either a potential men Mr. President, if this idea meets with brought about mechanically. It is · not ace to the future peace of the world, or any approval of my associates in the primarily a thing of pacts and agree a good infiuence for the future rehabili Senate, I will shortly hereafter introduce ments. It is not a question of laying out tation of their country and the world. a resolution .to create a committee for a pattern now, when no one can see the I believe that those prisoners may be the purpose of making such an investi imponderables of the future. infiltrated with right ideas, and right gation and reporting its findings to the If we are. to change the world it be thinking, and be converted to an appre Senate. comes a matter of nations and people ciation of the cultural values and the Mr. President, I conclude with the being reborn and that is a matter of great contributions that their country thought with which I started, by quoting getting hold of dynamic ideas which will in the past has made to civilization. Justice Oliver Wendell Holmes: "The push them over and past the limitations Their land has given great thinkers, thinker of today controls the future." which bind them today. We can com great authors, great scientists, great THIRTY-PERCENT CABARET TAX mand the future righteously and con musicians to the world-lovely things for structively only if "we use our heads." man to live by. Goethe, Schiller, Mr. McCARRAN. Mr. President, I America can become adequate to weave Beethoven, and a host of others have send forward and ask to have read an a pattern of international peace and or added beauty to living. amendment to House bill 4464, to in der only if she is filled with the idea of For more than a century the Germans crease the debt limit of the United a great purpose. who have emigrated to this country have States. We have expressed ourselves-and by made great contributions to the welfare, The PRESIDING OFFICER. The "we" I mean our leaders in government peace, and stability of the United States. clerk will state the amendment. in lofty phrases and sentiments, but we I could mention numerous names, such as The CHIEF CLERK. At the proper place must make sure that those ideas are Carl Schurz, Charles Steinmetz, and in the bill, it is proposed to insel't a new translated into constructive action, and others. In my own State, in every con section, as follows: we must make sure that America re structive field of human endeavor, the SEc. -. Reduction of war-tax rate on caba mains doubly alert in the future in this sons of Germany have made great con rets, roof gardens, etc. fast-changing world, lest we prove rec tributions toward the American way of (a) Reduction of rate: Section 1650 is reant to our trust as trustees of great life. amended by striking out "30 percent" where human values. There must be no more it appears in the table therein as the war-tax To return these German prisoners to rate on cabarets, roof gardens, etc., and in Pearl Harbors in our history. Germany when the war is over without serting in lieu thereof "10 percent." I stress the need of remaining on guard at least making an effort toward their (b) Effective date: The amendment made and seeing to it that the Republic and its educational rehabilitation and apprecia by subsection (a) shall be applicable only system of checks and balances remains tion of the aims of America in this global with respect to the period beginning at 10 intact. This calls for the American peo conflict, the great constructive ideas that a. m. on the first day of the first month fol ple to maintain a strong independent Germany has given to the world, and the lowing the date of enactment of this act. Congress. worthwhileness of the republican way of Mr. McCARRAN. Mr. President, prioi· We know that the Hitlers of the world life, would negate our own war aims and to April 1 there was an unprecedented acquired absolute power only when the fail to put out the fires that would make demand for the entertainment afforded legislative branch in those governments for another war. in cabarets · throughout the country. became subordinate and destroyed. In We have read in the newspapers that The owners of cabarets throughout the other words, no "check" remained. Un the German prisoners by their conduct country, contemplating a falling off in der the R.epublic-and we are not a show absolute disrespect for American business by reason of the 30-percent tax, democracy-a strong independent Con ideals, and are still Nazis at heart. I made inquiries with respect to interpre gress will always provide a check and a ask, What are we doing to antidote that tations of the Revenue Act of 1942, which balance on the Executive and keep liber condition? If the idea is the thing, if defines a cabaret as a place furnishing ty and freedom safe. the condition of men's minds shapes the public performances. These interpreta A rubber-stamp Congress in time of future, what are we doing ln this situa tions were sought not for the purpose war or of peace provides a menace to tion? of circumventing the law, but for the constitutional government. The safety We have heard much talk about re purpose of obtaining interpretations for of the Republic depends upon the heal- .. educating the whole German Nation. the individual · cafe owner to decide 4858 CONGRESSIONAL RECORD-SENATE MAY 23 whether his place of business with his our votes on that question when the Mr. McCARRAN. I am very grateful particular. type of entertainment would debt-limit bill is before the Senate. to the Senator for his contribution. I be subject to the new. 30-percent tax. Mr. McCARRAN. That is correct. have received many letters and much The Revenue Act of 1942, section 622, There is no question that these places ·correspondence dealing with institutions in referring to section 1700 (e) (1) , ex dispensed with entertainers and stopped -and places in the Senator's State and in cepts instrumental or mechanical music their patrons from dancing so as to avoid other States of the Unioh as well, which alone from the application of the tax. the 30-percent tax and maintain their fortify the contention I am making. ,· . In. othe-r words, any place of business gross business at its former level, with the Mr. DAVIS. Mr. President, will the described in that section that has only result that now, with instrumental music Sena tor. yield? instrumental or mechanical music is not only, they are able to maintain their busi Mr. McCARRAN. I yield. subject to the tax. Under the 5-percent ness, and the Government is being de Mr. DAVIS. Do the figures stated by tax, although this exception was in the prived of approximately $10,000 a month the Senator represent the loss of income law, it is safe to state that in no case in revenue from both of these places. It to the Government or the loss to the was any attempt made to obtain an in is safe to state that throughout the coun places which are carrying on ·that sort terpretation, and so a 5-percent tax was try there are similar instances one hun of business? paid. As a resuit of various interpreta dredfold. Mr. McCARRAN. They represent a tions cabarets throughout the country The purpose of the revenue act and loss of business and of income to the in advertised that up to a certain hour the increase in cabaret taxes to 30 per stitution, and, of course, a loss of revenue there would be no cabaret tax. In fact, cent was to obtain revenue. This highly to the Government follows. ·in the city of Washington, any news confiscatory and discriminatory tax has Mr. President, the figures I have cited paper which contains advertisements of proven a failure in its first month of represent class spots in the cities of New cabarets includes advertisements from operation. By reason of the tax numer York and Boston. In this connection, it numerous establishments prominently ous places throughout the country are be- must be borne in mind that the city displaying announcements that there is . ing forced to close. Hence, the source of New York is the entertainment center no cabaret tax up to a certain hour and of the revenue is lessened. Then. again, of the world, and we must look at con in certain ;rooms, all in accordance with in order to a void the tax by reason of the ditions in the small places throughout . the interpretations of the revenue act. exception in the law, many places have the country which are greatly suffering By reason of the 30-percent tax and . already. discharged their entertainers and by reason of this tax. · the interpretations sought by reason of are continuing to do so, throwing thou In other cities throughout the country this high tax, the Government is being sands. of actors out of work. With the business has taken a drop which makes deprived of millions of dollars. In the shutting down of these places and the it clear and.evident that.the purpose of city of New York alone, there are two falling off in business, not only are actors the revenue act in _att~mpting to create· very well-known establishments which being forced out of work, but, likewise. revenue has been defeated by its own formerly paid a 5-percent tax on their waiters, cooks, and bartenders who are terms, because it must be borne ·in mind gross business, which in each case was employed in these places. Many indus that, with the falling off in business, the approximately $100,000 a month. By tries closely allied to the cafe industry ov_er-all tax situation is greatly affected, reason of the 30-percent tax and the . are likewise directly suffering from the -since the Government not only loses in exceptions set forth in the Internal Rev loss of business suffered by cabarets. admissions taxes but likewise loses with enue Act of 1942 both these places now Purveyors of foodstuffs, alcoholic bev- the shutting up and closing down of have ·only instrumental music, and the . erages, supply men, costumers, repair -business additional revenue heretofore Government fails to collect the 5-percent men, carpenters, and all industries which received in the· form of income taxes not tax formerly collected. either supply or service the cafe industry only from the cabarets but those indus Mr. WALSH of Massachusetts. Mr. have suffered a tremendous loss by rea-· -tries · relying on the cabarets for their President, will the ·Senator yield in or son of the falling off in business. It must income. der that I may make an observation? be borne in mind that the gross business In the city of Chicago the leading es- Mr. McCARRAN. I yield. of the cafe industry throughout the . tablishments suffered as follows: Rio Mr. WALSH of Massachusetts. Evi country is $600,000,000. As an example Cabana, business off 30 percent;- Pan dence has been referred to by the Sen of the falling off in business, the follow ther Room, business off 25 percent; Bou ator from Nevada with reference to the ing are the figures from the leading levard · Room, business off 30 percent; result of the entertainment tax in New places in the cities of Boston and New Empire Room, business off 25 percent; York City. Similar evidence has been York: Chez Paree, business off 30 percent; Ma presented to me by various persons in my rine Room, business off 25 percent; Latin own State, sucn as those engaged in the Mar. 1 Apr. 1 to Cocktail Quarter, business off 30 percent. hotel and restaurant business where cab Name to 25 25 lounge In Hollywood, Calif., grosses in leading aret entertainment is furnished. The ------places fell off from 20 to 50 percent. evidence shows that a great loss in reve Latin Quarter (Boston). $56,617. 14 $39, 806. 58 $13, 044. 92 Earl Carroll's theater restaurant, one of nue has been suffered by the Govern The Mayfair (Boston).. 32, 240.35 17,582.88 4,.949.10 the -leading places · in Los Angeles, sus El Morrocco 1 ______------ment, and in some instances it has been Hurricane ..•.•• .:...... 78,754. M 50,396.67 ·------ tained a loss of $1,500 a night since the necessary to discontinue business. I Versailles______77,374. 92 56,461.69 4, 737. 50 inception of the 30-percent tax. Village Barn ______30,009.10 24,575.52 ------have rarely received in connection with -Billy Rose_·______106,878.00 68,342.00 ------·· The only method for the Government any legislation a greater number of pro - Leon & Eddies 2 ______------·--· to raise money in the form of taxation tests than I have received with refer-ence on admissions to cabarets is 'by having a to the cabaret tax. • I Average loss. $250 a day. . . fair and equitable tax. A tax of ·10 per 2 March 1943, $68,519.85; March 1944, $80,441.20; April May I ask the Senator if he contem 1943, $49,561.44; April1944, $44,254.06. cent will prevent places from closing plates making an effort to reduce the down, prevent unemployment, be fair to tax? Mr. WALSH of Massachusetts. Mr. members of the armed forces who fre Mr. McCARRAN. I have had read President, will the Senator yield? quent these places, and in the final from the desk an amendment which Mr. McCARRAN. I yield. analysis bring in to the Government the ·I shall offer to the debt-limit bill. · We Mr. WALSH of Massachusetts. ·I may added and add~tional revenue originally had an amendment prepare'd to the tax say that similar figures have been pre · contemplated· by the Internal Revenue - simplification bill which was passed the sented to me by the establishments Act of 1943.· A fair tax of 10 percent will other day. The chairman of the com named by the Senator, and I have every not destroy this business and industry. mittee requested us not to offer the reason to believe that they are correct. If the 30-percent tax continues, the en amendment to that bill, stating that he I have also personal knowledge that very tire industry faces ruin and destruction. would have no objection to our offering great injury has been dohe to these busi The conclusion from this is very clear: it to the debt-limit bill which will come nesses. · As I said before, some of them That the Government will never receive before the Senate later. have closed and many of them will be either the · original revenue heretofore Mr. WALSH of Massachusetts. So we obliged to close their doors and be wiped received under the 5-perc;ent tax nor the shall all have an opportunity to regi.ster out of business if th.is tax is not repealed. contemplated revenue 'at the time of the 1944 CONGRESSIONAL RECORD-SENATE 4859 passage of the Internal Revenlie Act of sion," on page 4, line 6, after the word on page 12, line 8, after the name "De 1943, which taxed admissions in cabarets ''vehicles'', to strike out "$200,000" and partment of the Interior", to strike out at the rate of 30 percent. insert "$214,000". "$290,000" and insert "$300,000." The best evidence that the industry The amendment was agreed to. The amendment was agreed to. faces ruin and prominent places and The next amendment was, under the The next amendment was, under the . small places will close down is that the subhead "Soil and Moisture Conservation heading "Solid Fuels Administration for Marine Roof of Brooklyn's Hotel Bossert Operations," on page 4, line 20, after the War", on page 13, line 7, after the word · announced on April29 that it was closing word "including", to strike out "$100,000'' "services", to strike· out "$4,669,200" and this room because of the 30-percent tax. and insert "$105,000"; in line 25, after insert "$5,025,000." This room has been a favorite for 28 the word "exceed", to strike out "$4,000" The amendment was agreed to. years. Especially in the summertime was and insert "$5,000"; and on page 5, line The next amendment was, on page 13, this room a popular dining and dancing 2, after the word "vehicles", to strike out after line 11, to insert: place, because it was located on the roof "$1,200,000" and insert "$1.300,000". Fuels conservation: For all necessary ex of the Bossert Hotel and overlooked New The ar11endment was agreed to. penses of the Solid Fuels Administration for York's harbor. The next amendment was, on page 5, War in carrying out a Nation-wide program In m.y opinion, time is of the essence. line 23, before the word "for", to strike of fuel conservation, including the prepara Any relief must come immediately, since out "$8,000" and insert $10,000"; and, tion for and dissemination of fuel conserva once these places shut down and business on page 6, line 5, after the name "Depart tion information by various media (includ continues to fall off at the rate it has, it ment of the Interior", to strike out ing radio, and still and motion pictures to be "$525,000" and insert "$530,000." commercially made and released); such ex· is impossible to estimate how long it will penses to include personal services in the take before business reaches its plane The amendment was agreed to. District of Columbia; not to exceed $100,000 prior to April 1. The next amendment was, on page 6, for the employment of technically qualified Mr. President, the Revenue Act of 1943 after line 6, to_insert: persons or organizations, by contract or with respect to admissions in roof gar Payments of wards, war minerals claims; otherwise, wit~out regard to section 3709 of dens, cabarets, and so forth, by its own To complete payment of awards made by the the Revised Statutes, or the civil-service and Secretary of the Interior in accordance with classification laws; printing and binding; terms defeated its purpose by fixing the the act of May 18, 1936 ( 49 Stat. 1355), travel expenses, including attendance at cabaret tax at 30 percent. Delay at this amending the War Minerals Relief Act of meetings of organizations concerned with the time in passing legislation to reduce the March 2, 1919, and as authorized by the act purposes of this appropriation, and actual 30-percent tax to 10 percent will likewise of April 4, 1944 (Public Law 284), $54,775.82: transportation and other necessary expenses defeat the purpose of relief. Provided, That the settlement of awards un and not to exceed $10 per diem in lieu of der this appropriation shall be made through subsistence of persons serving, while away APPROPRIATIONS FOR THE INTERiqR the General Accounting Office. from their homes, in an advisory capacity DEPARTMENT without other compensation from the United 1 The amendment was agreed to. States, or at $1 per annum; books of refer The Senate resumed the consideration The next amendment was, under the R. ence, periodicals, and newspapers; office sup of the bill (H. 4679) making appro subhead "Contingent expenses, Depart plies; furniture and equipment; purchaEe, priations for the Department of the In ment of the Interior," on page 7, line 25, maintenance, repair, and operation of pas ter~or for the fiscal year ending June 30, ·after the words "provided for", to strike senge~·-carrying automobiles; reimbursement 1945, and for other purposes. out "$164,000'' and insert "$168,000." at not to exceed 3 cents per mile of em. The PRESIDING OFFICER The next amendment was, under the Without objection, tP,e co;rninittee ~. ·into, and our committee adopted the .subhead "General fund, construction", at amendment, on page 7l,line 13,.to strike • view that the sooner we make a -begin the top of page 70, to insert: out "$375,000"-and insert 4'$3,950,000" is ning the better, particularly in view of Davis Dam project, Arizona-Nevada: Pro agreed to. , · the necessity -for post-war planning. ; ~ vided, The appropriation heretofore made for The clerk will state the next committee Mr. O'MAHONEY. Mr. President, will this project shall be available for construe- . amendment. the Senator frt'm Missouri yield? tion of that part of the DaviS-Phoenix trans The next amendment was, on page 71, Mr. CLARK of Missouri. I yield. mission line from the vicinity of Parker Dam line 21, after the word "exceed", to strike .. Mr. O'MAHONEY. I might · add to to Phoenix, Ariz. out "$235,000" and insert "$265,000." what the Senator from Arizona has said The amendment was agreed to. The amendment was agreed to. that it was not the purpose of the com The next amendment was, on page 70 , Mr. CLARK of Missouri. Mr. Presi mittee in approving this amendment to line ·15, after the name "California", to dent, I move to reconsider the vote by furnish the Bureau of Reclamation or strike out "$960,200" and hsert "$3,495,- which the amendment in line 13, on page the Interior Department with funds to 200", and in line 16, after the amendment 71, was -agreed to. roam all over the United ~tates seeking just above stated, to strike out the The PRESIDING OFFiCER. Without to expand the principle of irrigation. comma and "and in addition thereto the objection, the vote by which the amend The purpose was to enable the Depart unexpended balance heretofore deter ment was agreed to is reconsidered. ment of the Interior, through the Recla mined to be available for construction of Mr. CLARK of Missouri. Mr. Presi mation Bureau, to continue the studies transmission lines shall be allocated to dent, I am opposed to the amesdment involved in the Bureau of Reclamation other construction features of the proj because it increases the amount con- , repoxJI;-"Which has already been made a ect." tained in the House bill from $375,000 to Senate document-No. 191-and that au The amendment was agreed to. $3,950,000, and the purpose of the _in thority would be wholly under existing The next amendment was, on page 70, crease is perfectly disclosed by the re law, the Reclamation Act. The amend after line 19, to insert: port of the committee on page 14 where ment does not increase the powers of the Kings River project, California, $750,000. it says- Bureau of Reclamation in the slightest Of this increase of $3,575,000 recommended respect, nor does it in any way, shape, The amendment was.agreed to. b•· the committee, $3,000,000 is allowed for or form alter the jurisdiction of the Army The next amendment was, on page 70, continuation of investigations and for prep engineers over navigation. line 21, after the name "Colorado", to aration for construction (other than the I think I am rather intimately aware strike out "$1,43},000" and insert "$1,- purchase of rights-of-way) of· the Missouri of the thinking of the group of Senators 237,000." Basin projects. The amendment was agreed to. who have been urging an amendment to That simply means that this proposal the river and harbor bill, and I may say The next amendment was, on page 70, is in pursuance of an attempt which is to the Senator from Missouri that they line 23, after the name "Anderson being made to extend the jurisdiction of have no thought whatsoever of taking Ranch", to strike out "$4,300,0JO" and the Reclamation Bureau all over the away from the Army engineers the power insert "$4,040,000." United States. A suggestion was made over navigation. We are seeking merely The amendment was agreed to. this morning in the Commerce Commit to make an adjustment of uncoordinated The next amendment was, on page 70, tee, to the absolute astonishment of activities of several bureaus. But, what after lin~ 24, to insert: every member of the committee, I think, ever may be the decision of the Com Tucumcari project, New Mexico, $2,250,000. except the one who made it, that the merce Committee or of the Senate with The amendment was agreed to. Reclamation Bureau ought to control respect to that controversial item in the The next amendment was, on page 71, the disposition of the power on the Ala river and harbor bill, it certainly has no line 1, ·after the name "Oklahoma", to bama-Coosa River project in Alabama. effect whatsoever upon this item, and strike out "$545,000" r.nd insert "$945,- The pending amendment would increase this item has no effect upon that. 000." tenfold the authorization to the Bureau Mr. CLARK of Missouri. Mr. Presi The amendment was agreed to. of Reclamation for roaming around and dent, has the Senator from Wyoming The next amendment was, on page 71, making general investigations at large. concluded? If he has not concluded, I line 2, after the word "division", to strike It seems to me to be entirely unjustifi shall wait until he has concluded. out "$100 ,000" and insert "$600,000." able, and I do not think the Senate ought Mr. O'MAHONEY. I have concluded. The amendment was agreed to. to adopt such a provision, which would Mr. President. I merely responded to The next amendment was, on page 71, permit the Reclamation Bureau simply the Senator from Missouri. line 13, after the name "Federal Power to roam around wherever it pleases to Mr. JOHNSON of Colorado. Mr. Pres Commission", to strike out "$375,000" make investigations. ident, will the Senator yield? and insert "$3,950,000." The PRESIDING OFFICER. The Mr. CLARK of Missouri. I yield. Mr. CLARK of Missouri. Mr. Presi question is on agreeing to the committee Mr. JOHNSON of Colorado. With re dent, a parliamentary inquiry. amendment on page 71, line 13. spect to the charge that the amendment The PRESIDING OFFICER. The Mr. HAYDEN. Mr. President, as is would result in giving to the Reclama Senator will state it. well known to Members of the Senate, tion Bureau the right to roam all over Mr. CLARK of Missouri. '\Vould the there has been controversy, to which the the country, I presume the Senator from adopticm of this amendment preclude Senator from Missouri has referred, be Wyoming would not object to restrict the entry of a point of order to the para fore the Committee on Commerce, with ing the Bureau to points west of the graph at the proper time? respect to which was the most important ninety-seventh meridian, would he? If The PRESIDING OFFICER. The use of waters in the Missouri River Basin, any Senator wanted to offer such an Chair understands the Senate is dealing whether to maintain a channel for navi amendment, because some other S::mator with the House language in this ~ara gation, or for the development of lands might be afraid the Reclamation Bureau graph, and that being already in the bill by irrigation on the headwaters. would get out of bounds, I am sure the . by action of the House a point of order The thought of our committee, when Senator from Wyoming would be satis does not lie against it d this time. If this amendment was suggested by the fied if the Bureau were restricted to the the Senator from Missouri wishes to senior Senator from Wyoming [Mr. areas west of the ninety-seventh merid move to strike out, he can do so. O'MAHONEY], was that an ascertainment ian. Mr. CLARK of Missouri. I will move of the fact was the best way to settle the Mr. O'MAHONEY. It is certainly in to strike out at the proper time. My controversy. Where there is a serious areas west of that meridian that recla inquiry was whether the adoption of the difference.of opinion, particularly among mation and irrigation are required. amendment would preclude the motion engineers, and the opinion is based upon Mr. HAYDEN. Mr. President, will the to strike. a lack of sufficient data, the best way to Senator yield? The PRESIDING OFFICER. The get to the bottom of it is to find out just Mr. CLARK of Missouri. I yield. adoption of the amendment would not what are the conditions. Ultimately Mr. HAYDEN. There is always a firm preclude the later motion to strike out there is not any question at all that this working arrangement between the Com the paragraph. whole problem will have to be looked . mittees on Appropriation of the House ·coNGRESSIONAL RECORD--SENATE 4863 and the Senate and the agencies of Gov- . amendment on page 71, in line 13.
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