"1929 CONGRESSIONAL RECORD-SENATE ~115_ to their constitnenf8 every two years and renew their commis-­ or such part thereof as may be necessary," so ·as to make the sions in order that that body may keep i.li close touch with the resolution read : people. Whereas it is charged that the lobbyists, located in and around We have before us now in the pending bill a provision to Washington, filch from the American public more money under a false enlarge this power in the hands of the President, having already claim that they can influence legislation than the legislative branch of conferred it upon him seven years ago. I opposed it· then ; I this Government costs the taxpayer ; and. oppose it now. But, Mr. President, I am willing that the Whereas the lobbyists seek by all means to capitalize for themselves Tariff Commission shall report to the President and then that every interest and every sentiment of the American public which can be the President shall communicate to Congress by message regard­ made to yield an unclean dollar for their greedy pockets: Now, there­ ing such report if at the same time the Tariff Commission shall fore, be it be required to report to us. In that event we would be sure Resolved, That the Committee on the Judiciary of the United States to get all the information either as to tarlfi increases or tariff Senate, or a subcommittee thereof to be appointed by the chairman of decreases. It might happen, if the Tariff Commission were the committee, is empowered and instructed to inquire into the activities required to report only to the President and he could use his of these lobbying associations and lobbyists. discretion as to submitting the report to the Congress, that he To ascertain of what their activities consist, how much and from what would only do so when he felt so disposed. So when we require source they obtain their revenues. the Tariff Commission to report to Congress at the same time How much of these moneys they expend and for what purpose and in it reports to the President we take a proper precautionary step what manner. to make sure that we shall obtain all the information that is What effort they put forth to affect legislation. available at the same time the President gets it so that both the executive department and the legislative department may Said committee shall have the power to subpama witnesses, administer have the facts upon which to act. oaths, send for books and papers, to employ a stenographer, at a cost I think the Congress ought to receive such information and not exceeding 25 cents per 100 words, to report such hearings as may be ought to act upon it. I can understand that growing out of had on any subject before said comlllittee or subcommittee thereof, and competition_between our country and some foreign country an do those things necessary to make the investigation thorough. acute situation may arise, but the time is so brief between the All the expenses for said purposes shall be paid out of the contingent expiration of one session of Congress and the convening of fund of the Senate. For the purposes of this investigation the expendi­ another that there can be no excuse for raping the Constitution ture of $10,000 is authorized, or such part ~reof as may be necessary. of the country ; there can be no excuse for taking this power Mr. BROOKHART. Mr: President, I desire to ask the Sena­ away from the legislative body, where the Constitution lodged it, tor from Arkansas [Mr. CARAWAY] whether the resolution is and giving it to the President. broad enough .to cover investigation of the social lobby? I am frank to criticize the Supreme Court. I do not think its Mr. OARA WAY. Yes, sir; it is broad enough to investigate decision round on the question of the flexible tariif provision. anything in which one might feel interested. I have a right to my opinion about it, and I dare to express it The amendments were agreed to. in this body. I do not see how any court can construe the The resolution, as amended, was agreed to. Constitution of the United States as meaning that the President The preamble was agreed to. may exercise the taxing power. We fix a tax rate at one RECESS figure and, as the lawmaking body of the Nation, we put our Mr. SMOOT. I move that the Senate take a recess until 11 seal upon it; then it goes up to the President, and the President, o'clock to-morrow. if he chooses, may raise that rate. I do not care what Supreme The motion was agreed to; and (at 4 o'clock and 35 minutes Court judge may decide to the contrary, that is nothing more p. m.) the Senate took a recess until to-morrow, Wednesday, nor less than the exercise of the taxing power. It is bound to October 2, 1929, at 11 o'clock a.m. be that; it is that upon its face. I think our courts had better be a little careful in their construction of that great document. I know there are many people who would like to have such SENATE power conferred, but, in the first place, I do not think we have a right to confer it upon the President; and, in the second place, WEDNESDAY, October fJ, 191&9 I do not think it is wise to confer it upon him. I think it ought to remain in the hands of the Congress. (Legislative day of MQnday, Sept~ber 30, 1929) Mr. President, that is about all I care to say upon the subject The Senate met at 11 o'clock a. m., on the expiration of the at this time; but before I conclude I desire to repeat that there recess. are commodities produced in my section of the country which Mr. JOHNSON obtained the floor. need an increase in tariff duties. Some of them have not been Mr. FESS. Mr. President, will the Senator yield to enable me , fairly treated in this bill. I hope before we finish its consid­ to suggest the absence of a quorumi 1 eration that justice will be done to those products. I have my The VICE PRESIDENT. Does the Senator from California idea about how the tariff ought to be handled. My idea is yield for that pur'pose? the one which the Constitution expresses-that Congress and Mr. JOHNSON. I do. not the President of the United States should fix tariff rates. Mr. FESS. I suggest the absence of a quorum. PBOPOSED INVESTIGATION OF LOBBYING ORGANIZATIONS The VICE PRESIDENT. The clerk will call the roll. The legislative clerk called the roll, and the following Senators Mr. DENEEN. Mr. President, out of order, I ask leave to answered to their names: report back favorably, with amendments, from the Committee Allen Fletcher Keyes Simmons to Audit and Control the Contingent Expenses of the Senate, Ashurst Frazier King Smith Senate Resolution 20, to investigate the activities of lobbying Barkley George La Follette Smoot Bingham Gillett McKellar Steck associations and lobbyists in and around Washington, D. C.; and Black Glass McMaster Steiwer I submit a report (No. 39) thereon. I ask unanimous consent Blaine Glenn McNary Stephens for the immediate consideration of the resolution. Blease Goff Metcalf Swanson Borah Goldsborough Moses Tb.omas, Idaho The PRESIDENT pro tempore. Is there objection? Bratton Gould Nortis Thomas, Okla. Mr. LA FOLLETTE. Let it be read. · Brock Greene Nye Townsend The PRESIDENT pro tempore. The resolution will be read. Brookhart Hale Oddle Trammell Broussard Harris Overman Tydings The legislativ(' clerk read the resolution as proposed to be Capper Harrison Patterson Vandenberg amended; and there being no objection, the Senate proceeded Caraway Hastings Phipps Wagner . to its consideration. Connally Hatfield Pine Walcott Copeland Hayden Pittman Walsh, Mass. The amendments were, on page 1, after the preamble, to strike Couzens Hebert Ransdell Walsh, Mont. out " Resolved, That a special committee to be appointed by the Cutting Heflin Reed Warren President of the Senate consisting of three members is ]+ereby Dale Howell Robinson, Ark. Waterman -Deneen Johnson Robinson, Ind. Watson authorized. Said" and in lieu thereof to insert "Resolved, Dill Jones Schall Wheeler That the Committee on the Judiciary of the United States Edge Kea.n Sheppard Senate, or a subcommittee thereof to be appointed by the chair­ Fess Kendrick Shortridge man of the " ; on page 2, line 8, before the word " and," to Mr. FESS. I announce that my colleague [Mr. BURTON] is insert " at a cost not exceeding 25 cents per 100 words, to re­ still detained from the Chamber on account of illness, and ask port such hearings as may be had on any subject before said that the statement be allowed to stand for the day. committee or subcommittee thereof" ; in line 11, after the word Mr. SCHALL. I wish to announce that my colleague the " contingent," to strike out "expenses'" and insert "fund " ; and senior Senator from Minnesota [Mr. SHIPBTEAD] is still de­ in line ll, after the word " Senate," to insert " For the purposes tained from the Senate on account of illness. I ask that this cf this investigation the expenditure of $10,000 is authorized, announcement may stand for the day. 4116 CONGRESSIONAL .RECORD_- _SENATE OcTOBER 2 The VIO:ID PRESIDENT: Ninety Senators have answered to eastern farms . . Statistics are usually dreary but they are sometimes their names. A quorum is present. illuminating. In the latter class are the carload shipments to and from railroad stations on the reclamation projects. BILLS "INTRODUCED These 17 projects shipped in over the railroads goods worth $120,· Bills were introduced, read the first time, and, by unanimous 000,000 and shipped out crops worth $158,000,000. If to this could be consent, the second time, and referred as follows : added the goods and crops carried in trucks, the showing would be By Mr. HARRISON: still more impressiye, but as it is, these lands that only yesterday were A bill (S. 179-3) for the relief of Jeff Davis Caperton and unpeopled deserts have a commerce that used over 200,000 cars for the Lucy Virginia Caperton; to the Committee on Claims. year's business. I wish those who advocate stopping this development By Mr. NORRIS: would think what it has done and is doing to lower freight rates and A bill (S. 1794) to amend section 1112 of the Code of Law give business to clothing makers and farm-machinery companies. for the District of Columbia; to the Committee on the Judiciary. Those who oppose Fede_ral irrigation do so ft·om a mistaken belief that . By 1\lr. LA FOLLETTE : it contributes to the agricultural surplus. They fail to recognize that A bill (S. 1795) granting a pension to Ellen E. Hoyt; to the irrigation operates in distinct zones, that its influence on markets is Committee on Pensions. largely confined to those zones. Eastern trade in irrigated products By Mr. OVERMAN: is mainly restricted to products which can not be grown there or can A bill (S. 1796) granting a pension to Fannie C. Woodward; not be · grown for the season in which they are marketed. The thou­ to the Committee on Pensions. sands of carloads of winter lettuce grown indoors in California and By Mr. THOMAS of Oklahoma: - Arizona make this vegetable cheap. All classes enjoy it. They could A bill ( S. 179-7) granting an increase of pension to Charles not do so if it had to be grown in eastern hothouses. Morse (with accompanying papers) ; to the Committee on Pen­ The fruit of Washington is exported from Pacific points to the mar­ sions. kets of Europe, Asia, and other eastern lands. That helps the Nation AMENDMENTS TO THE TARIFF BILL and injures no one. I could give a score of similar examples. Dairy­ Mr. BLAINE submitted an amendment, and Mr. CUTTING ing is a great and growing industry in Idaho, but its shipments do not submitted two amendments intended to be proposed by them, compete with the farms of Iowa and Illinois. Six million dollars' respectively, to House bill 2667, the tariff revision bill, which worth went to Los Angeles last year. In other words, the industrial were ordered to lie on the table and to be printed. growth of the arid region and our expanding commerce of the Pacific Ocean are creating new _markets and new agricultural needs which BURIAL IN EUROPE OF WORLD W AB SOLDIERS FROM MAINE ought to ~ supplied by the West. The West iB com~g to have a busi· [Mr. HALE asked and obtained leave to have printed in the ness and commerce within its borders, the importance of which is not RECoRD a list of World War soldiers from Maine whose bodies lie realized by the Nation, and the irrigated farm is one of its leading ' buried in cemeteries in Europe. The list was printed in the factors. If these irrigated projects were wiped out, it would make · RECORD of June 19, 1929, page 3356.] little or no difference in the price of the staple products of the Missis· sippi Valley, such as corn, wheat, oats, and hay. As Secretary Wilbur DEVELOPMENT OF RECLAMATION PROJECTS said in a recent addr~s, one timely rain in that region will increase ?..rr. DILL. Mr. President, I ask leave to have printed in the the yields of these products more than all that is grown on these little RECORD an address, published in the United States Daily of this oases of agricultural wealth scattered through the great expanse of the date, by Dr. Elwood Mead, Commissioner of Reclamation, De­ arid region. But to wipe out these projects or stop their growth would partment of the Interior, before the western section of the be a calamity to the West that needs them and to the eastern factories Chamber of Commerce of the United States, at Ogden, Utah, on which serve them. the continued development of the Federal reclamation projects. SUDDEN EXPANSION FEARED BY OPPONENTS There being no objection, the address was ordered to be printed in the RECORD, as follows: The achievements of Federal reclamation have thus far justified the policy. What about the future? The answer is that to interrupt the FURTHER DEVELOPr.IENT OF LAND PROJECTS BY RECLAMATION RECOM­ careful businesslike dev£'1opment now going on would be plain folly. MENDED FOR WEST--FARMERS 011' MISSISSIPPI VALLEY HAVID BENEFITED It would be catering to regional prejudices that will disappear as soon BY VAST IMPROVEMENTS, SAYS DR. ELWOOD MEAD as the facts are known. The Reclamation Bureau is now using all Its Continued development or' the Federal reclamation projects was recom­ funds to complete projects planned and begun many years ago. It will mended by the Commissioner of Reclamation, Department of the In­ require all the. money coming into the firnd for -the -next 'seven . years terior, Dr. Ellwood Mead, in an address delivered October 1 before the to do this. Certainly these works ought to be ~uilt. No one, so far as western section of the Chamber of Commerce of the United States at I have seen, disputes this. What they argue against and seem to fear Ogden, Utah. The speaker pointed out that the products grown on the is a sudden large expansion. They do not seem to know that the only Government's irrigation projects did not contribute to the agricultural money which can now be spent is that which comes into the fund each surplus and that workers in the beet-sugar industrJ were consumers y£'ar in payments for water by settlers, from oil leases and power of staple and manufactured goods. revenues. The full text of the summary of Doctor Mead's speech, made public by The total is less than $10,000,000 a year. Population and the local the Department of the Interior October 1, follows: consumption of irrigated products in the arid States are growing faster The economic and social conditions of_tpe arid West are so radically than the expansion of irrigation. Corn is being shipped from the Mis­ different from those the original act was framed to meet that changes sissippi Valley to feed the mules that cultivate the irrigat~ orchard~ ot in legislation have not kept pace with them. The friends of reclamation, Washington. Some of this fear of surplus grew out of the discussion from President Hoover down, are seeking to ascertain what sh~uld be of Boulder Dam. its huge reservoir and great cost made this reaction done to bring this policy into harmony with present economic and natural. It is not realized that controlling the Colorado means the social requirements. opening of mines and enlarging factories as well as creating farms. When we attempt to appraise the value of Federal reclamation we Five million people will be added to the consuming population of the must consider the conditions of the region where it operates. Shown Southwest before the farms watered from Boulder Dam are able to feed on a map, the 24 widely scattered areas of land irrigated from Federal . them. . . works are only a series of dots in the 1,000,000,000 acres of the 15 LABOR CONDITIONS IN NORTH CAROLINA States in which the projects are located. They are cases made important · Mr. OVERMAN. Mr. President-- by what surrounds them. They are still more insignificant when com­ Mr. JOHNSON. I yield to the Senator from North Carolina. pared with nearly 1,000,000,000 acres of farm land in the whole country. Mr. OVERMAN. Mr: President, I have in my hand a copy MARKET CREATED FOil PRODUCTS 011' EAST of the Manufacturers Record of September 26, 1929. I ask the That development has not hurt the farmers of the Mississippi Valley. indulgence of the Senate that the editorial in the magazine may On the cop.trary, it has helped them. The alfalfa grown on those irri­ be read and that I may have printed in the RECORD an article gated farms provides winter-feed for stock which feeds in summer on the on the following page containing excerpts fr()m the New York forest reserves and public ranges. That means more wool, which the World.,' giving an impartial account of the situation in North Nation needs. It also means feeder cattle for. ·the cornfields of the Carolina with reference to labor conditions and the · develop. Mississippi Valley. They provide a large amount of clover and alfalfa · ment of the South, and telling the tl"ue story about the actual seed, for which the climate of the East is unsuited. They produce a conditions in and about Gastonia and the activities of the com. large return in sugar beets, but we import sugar, hence this does not munists in the State. The editorial is very short and it will lower the price on surplus commodities, but, to the contrary, fut·nishes a not take long to read. I am sure that every Senator will be JD.arket for staples and manufactured goods for thousands of workers interested in the editorial and the article, particularly if he is in beet fields and western sugar refineries. from one of the New England States or from one of the Southern These and other similar projects create · a huge and growing market States. for products manufactured in eastern factories. Farm machinery, The VICE PRESIDENT. Is there objection to the reading clothing, furniture, automobiles, worth millions of dollars, are sent to of the editorial? The Ohair" hears ·none, and ·the· clerk will read, these farms from factories where workers are fed from the products of as requested. 1929 CONGRESSIONAL RECORD-SENATE 4117 The legislative clerk read the.editorial, as follows: of the New England industry, they are ready to do battle for this life work to which they are devoted. [From the Manufacturers Record,. Baltimore, September 26, 1929]_ Unfortunately, as reported, they have taken unlawful means to en­ THE NORTH CAROLINA ISSUE IS, SHALL THE RANK BOLSHEVISM OF RUSSIA force their views. They have made it possible for the communists to RULJl THJl SOUTH? proclaim that there is lawlessness in North Carolina and that they Wherever the Bolshevistic or communistic element, working for the can not have any protection against these lawless men. The case is definite overthrow of religion and of government and of business, ap­ somewhat simila,r to that in the West years ago when the Industrial pears, there disorder inevitably occurs. It is found in recent efforts in Workers of the World had created such disturbance In one of the New York to a very large extent, just as at present it is tound to some Western States that they were forcibly put on a train and driven out extent in the South. New England has suffered for many years from its of the State, and warned never to return except at the peril of their aoverse influence. lives. It is a world-wide campaign. It is illustrated in the story often told, North Carolina has for many· years been l).Oted for law enforcement. about the time when Trotskl, ready to start for Russia, gathered a few No one, therefore, need imagine that the government of that State hundred of his followers in New York in what he thought was a secret will not be equal to handling this situation and protecting it against meeting, but which was attended by secret-service men of England and mob violence. But no one need imagine for one moment that the better of the United States. Trotski's closing statement as repeatedly re­ class oi North Carolina mill operatives will permit this foreign Bol· ported, and it must be remembered that Trotski's real name was shevistic element to come into that State and overturn and dominate Braunstein, or at least that was the name under which he went on the the cotton mill operative employment. The men who have unfortunately East Side of New York for years, was: used to some extent the mob spirit in opposing the activities of the " I am going to Russia to overturn that government and stop its war communists are not cotton-mill owners or managers, but the operatives against Germany. But I want you to stay in this country and bring themselves acting on their own volition and their determination that on one revolution after another, until you 'overthrow the damned the atheistic, anarchistic, Bolshevistic spirit which these outsiders have American Government." ' sought to develop in the cotton mills of the South, shall not succeed. When the British Government was informed of Trotski's speech, so Mr. OVERMAN. I now ask that the article from the Manu· it was reported, it cabled to this Government and asked that his pass· facturers RE)cord under the h·eading "New York World Publishes port be recalled, and that England might be permitted to hold him at Truth of North Carolina Labor Trouble," to which I referred, Halifax when the ship stopped there. It was said that In some way may be printed in the RECORD without reading. there was sufficient socialistic or communistic spirit in Washington to The VICE PRESIDENT. Without objection, it is so ordered. cause the request of the British Government .to be denied, and that The article is as follows : though England had taken Trotski from the ship and held him for a [From the Manufacturers Record, Baltimore, September 26, 1929] day, it was compelled by the refusal of this Government to recall his passport to let him go on his journey. NJ:W YORK WORLD PUBLISHES TRUTH OF NOR'!'H CAROLINA LABOR TROUBLE An American, closely identified during the war with the British Em· For the first time since trouble started in the textile labor of North bassy and ~ooperating with the ambassador, was asked by the Manufac­ Carolina last spring an eastern metropoljtan dally has recognized turers Record on his return' to this country if this report was true. He ·and published the fact that the struggle there is not between employer said that it unquestionably was true and was well known in England. and employee, but between communism and the American form of Trotski went to Europe, w.as car!-"ied by the German Government to government. Russia, and there inaugurated a revolution w:hich overthrew the Czar, Robert Barry, sent to Gastonia by the New York World, has written a caused the murder of the Czar and his family, and brought on one straight account of what he found there, describing his preconceived revolution after another until the Soviet Government now rules over ideas of working conditions as formed by listening to communists' de· 9,000,000 square miles of Russia, or an area three times that of the scriptions and comparing them with the .actual conditions he found. His r article should prove a revelation to the North and East, a revelation United States. of the boundless mendacity of the communist agitators. A few pointed From the beginning of that campaign the whole power and influence j quotations .from Barry's article will give a vivid contrast between con­ of the Soviet Government and the Third International of Moscow, which ditions that communist propaganda. had led him to expect and conditions · seem practically to be one and the same thing, have been used to bring i as he actually found them: on ·a Bolshevistic campaign throughout the world. The Industrial De­ ''Misrepresentation of conditions at the Loray mill is at the bottom 1 fense Association (Inc.) quotes the International Entente against the of a popular notion that Gastonia is an armed camp and that hum.an · Third International : " The communists of Moscow are redoubling their efforts to organize class hatred, disorder, and the crumbling of the life is not safe on its streets. " No one knows what is going on under cover or when an outbreak present order in the world. Moscow has fomented strikes, disorders, may occur, but I can say that o~tw.ardly there was no more peaceful· riots, revolts, revolutions in nearly every country in the world." The definite, determined effort of the Soviets in Russia has been to destroy town in America than Gastonia since I have been here. "In view of a vast amount of unfavorable publicity accorded the all faith in religion, all belief in a God, and to forbid the teaching of Manville-Jenckes plant, simple decency compels the assertion that actual; any form of religion even by families to their own chlldren. conditions in the plant are as far trom what they have been represented That is the spirit with which the movement is being carried on in to be as the amazingly efficient machinery there is from the old spinning this country. It is a spirit which has fomented the troubles in the ~~ I Carolina mills. • • • • • • • It must also be remembered in studying this situation that there are "My preconceived notions about the 'slave driving' of women and two distinct classes of people among the mill operatives of the South. children were knocked over the .fence. On floor after floor of the great The first are the higher class men and women who had suffered in the plant were clusters of women and girls chatting at the ends of aisles. direst poverty in the mountain regions of the Carolinas without employ­ They kept right on with their conversations as officials approached and ment because tliere was no possible industrial development within that gave mere casual looks as the overseers passed on. territory. For generations these people, the purest of the Anglo-Saxon "At one point we encountered a white-jacketed man pushing a cart of element in the world, had starved mentally and physically. candies, cigarettes, sandwiches, and cold soft drinks through the aisles. The second class is composed of people of a much lower standard of At si.ght of him employees left their work, made purchases, and consumed life and of much lower inherent mental and physical abilities. them leisurely. The first class Is a. strong, sturdy, virile element which can not pos­ • • • • • • • sibly be controlled or managed in the same way that .the lower class of " Far from being the undernourished and ragged types expected, the foreigners in the New England mills can be treated. The second class, girls were pretty husky-looking flappers. There was no child labor in fortunately much smaller in number, is open to any agitation of any the Loray mill. The North Carolina statute prohibits employment of kind. Thriftless often, it readily falls a prey to the teachings of the cbildren 14 years old or under. communists. "As we walked among the big, wide sheets of finished tire fabric. All who have been acquainted with the ·spirit of these two classes William Pickering, a division superintendent, whO, with H. M. McKelvey, ()f these mill operatives have known for many years, 30 or 40 or more, the chief engineer, accompanied me as guide, pointed to a rosy-eheeked that the better class have felt that the cotton mill afforded them girl in a neat pink linen dress. the first opportunity which they had ever had for steady and profitable " 'There's one of the downtrodden workera you saw in Washington employment, and who, therefore, determined that this industry should when that delegation visited the Senate,' Mr. Pickering said. be held against any incoming of foreigners such as are in New England, . "Having interviewed that delegation of Loray strikers in Washington ot· of negroes into the cotton mills as operatives. They have felt that in the spring, I could recall no such girl. Her appearance was so they have almost a right to monopolize this industry~ which was the changed, I inquired about it. first that ever gave them profitable employment. They have, therefore, " ' When we went to Washington,' she said, ' we were told to put ·on resented with intense bitterness any effort of people to establish cotton the worst-looking clothes we could find and we were told not to take a mills operated by negroes, and now when they see t4e :communists bath. I was ashamed to death of some of those pictures they took of working to overturn the whole situation, and believing that they are but me up there. They made· me look teriible.' the forerunnners of that communistic element which has. be~n the curse ."The girl said she had about alt" the comniunism she ever hopea to, see. 4118 CONGRESSIO·NAL ·RECORD-_' SENATE OcTOBER 2·

•. '.'At the conclusion of my inspection trip. I inspected . some of the it is the Nat~onal Textile Workers' , Union,. the affiliations of which are homes of the workers. I was told that. I could roam around and pick ·.with. the Communist Party in America. out any bouse in Loray village and examine it. "The ' unionists ' are radicals. They boast of that, don't deny it. ~ "There are 619 of the 'company homes' in the village. They are . Their chief organ is the Daily Worker, published in New York and not the shacks nor hovels described to Senators demanding a congres­ distributed widely in the mill towns of Gaston County, Some of the sional investigation of conditions here. I am told tb,at those in . the leaders -and organizers are enrolled communists. William .Z. Foster, Loray group are well above the average of Carolina mill towns, but it designated by Moscow as acting head of the Communist Party in the was Loray I was studying. United · States, bas been here and in Charlotte. _ - " The houses range from three to eight rooms. . A 4-room bouse is . " The leaders are for the most part foreigners, as the natives call about average. There is modern plumbing in all of them, sanitary and tbem down here. . They will define to you New York Jews or Russian kitchen. All but a few have bath tubs. All will have them by Christ­ Bolsheviks, or any of the rest of them, as foreigners. One leader ac· mas. The structures are of frame, as are most houses south of tbe kpowledged under oath ·in a courtroom he was a member of the British Potomac. Communist PattY and an atheist. . "They are so far superior to anything to be encountered in the mill · "An avowed purpose of the unionist group here involved is to set up towns of New England or Pennsylvania, comparison is idle." a government of workers .and farmers and of a type, if memory serves, · When the communists started their operations in North Carolina they neareJ; Lenin than the Non-Partisan League of Senator HENRIK SHIP­ stated their intention of organizing all southern textile labor. as a STEAD.· The declared immediate pu_rppse is to. organize the textile mills nucleus for communism in the South. They naturally did not publish of the_ Carolinas . and ·. Tennessee for civilized standards of living and the fact at that time that their goal was the overthrow of the United something more than a starvation wage. States Government, .and that the labor troubles were to be used merely ".The hatreds here are not those of strikers and 'scabs.' That passetl as a stepping stone to that objective; but· everyone at all acquainted 'Veeks ago, They are native against foreigner; North Carolina versus with their policy, their methods, and their official daily paper, the Daily New York's east idde and Russia's red flag; America against the world. Worker, knew that they were not at. all interested in the welfare. of the 'The Stars and Stripes Forever.' ~;~outhern workers but were only using them as tools in their effort to "North Carolina is . nQt unique in that respe~t . . There _may be a overthrow American Government and replace it by the present Russian . hundred .witnesses_to a _gangster slaying in New York ot: Chicago, _but all form. The general realization of the futility of such an objective blinds of them happen to d_eaf, dumb, and blind. Lynchings are investigated people to its dangers; for while that goal will not be reached the damage frequently. Co.nvictioll!~ are rare.'~ · they are able to do to the industries of the section they enter may well It is well for the people ·of the enttr.e·country to J;"ead ,yv-hat Mr. Barry run into millions. says. _What his next letters :will be we do not know, but we know Commenting upon the revelations of Barry's article, the New York that he is accurately expressing the _situation. World said editorially: REVISION OF THE TARIFF "For the sake of saving human life and the avoidance of further bloodshed and violence, the Communist Party should withdraw its or­ The Senate, as in Committee of the W.hole, resumed the con­ ganizations from Gastonia, N. C., and suspend its propaganda. sideration of the bill (H. R. 2667)' to provide revenue, to regu­ " The strike, however well it may have · been justified by conditions late commerce with foreign countries, to encourage the indus­ in the textile mills, was lost beyond hope of salvage months ago. Im­ tries of the United States, to protect American labor, and for partial observers agree that the only local followers the communists other purposes. · now have are drifters who will stay with them only ·as long as they are Mr. WALSH. of Massachusetts. Mr. Presiden't, with the per­ fed out of communist funds. The -agitation to-day has ceased to be mission of the Senator from California, I present and ask to eeonomic, has ceased to have any · relation to working hours or working have p_rinted in the .. RECORD a communi~ation from leading conditions. and has become a mere clash of fanatical communists with members of Harvard University of the Department of Arts and fanatical fundamentalists. the Law School, protesting against the inClusion in section 305, - " Impartial observers agree furthermore that the mill hands who at paragraph (a) of the pending tariff bill, the provision for cen­ first responded to the call from the communist lead-ers have turned sorship of literary and political objectionable books when im­ against them and resent their presence-because they are convinced that ported, by administrative officers <>f the customhouse. these organizers are interested primarily not in improving the· working The VICE PRESIDENT. Without objection, it is so ordered. conditions in the mills but in making propaganda for the Communist The letter is as follows : Party. Apart from the mill hands themselves the people of Gastonia, HAR¥ABD UNIVERSITY, apparently regardless of their employment or their interest in the mill111, Oam.bridge, Mass., ,September 'e'l, 1.929. are highly inflamed , against the communist organizers because of reck­ The Hon. DAVID I. WALSH, less charges made by them against men of such standing in the com- · United States Senate, Washi1~uton, D. o. munity as Solicitor J. G. Carpenter. · - DEAR SENATOR WALsH: We, the undersigned, are strongly o·pposed 'J Even in Mecklenburg County, where the atmosphere is somewhat to the provision in the pending tariff bill, section 305, paragraph (a), calmer, the people are inflamed because of the vicious and untruthful relating . to the' importation of immoral articles, which would extend charges made by the communists against Judge Barnhill. further the application of the present law. For the reasons stated below "The continuation of communist activity now can not possibly we object particularly to the proposed amendment authorizing customs improve the condition of the workers in the Gastonia mills. On the officials to .exchide books and other publications which, in their opinion, other hand, it will without question deeply jeopardize the case of the 16 advocate treason, insurrection, etc., in the same manner as obscene and men and women who must go on trial again for the murder of Chief other indecent publications. Aderholt. There can be little doubt that the interests of justice of this Experience ' has shown that customs · inspectors and appraisers. of case are safer in the hands of the reputable, people of North Carolina merchandise are ill-equipped to pass judgment upon the characte:r: of and the liberal~minded people throughout the countcy than they are in such publications. We have bad one very unsatisfactory episode here the hands of the communists. this' year, when a book used by the French department was excluded " By remaining in Gastonia, by continuing their present activities, by the customs· officials, ·and we anticipate many similar episodes, if they not only make it infinitely harder to obtain a fair trial for the the censorship at the customhouses is extended to. political writings. defendants, but they may be preparing the stage for a tragedy of very Few, if any, books which are · of interest to us fall ·clearly withiri· the much greater proportions than any that has yet been witnessed." provisions of the proposed amendment to section 305, but there are Writing undet· date of September 18 from Gastonia, Mr. Barry rightly many valuable books which, we fear, may be excluded by untrained sizes up the whole situation in the following: officials, inspired by honestly patriotic but unintelligent zeal, if this "No longer is the mill strike the issM. provision is enacted into law. "Communism and the red flag of Moscow are be.coming anathema to We believe that a political censorship of this kind by administrative the mill workers, who a few brief months ago were convinced they had officials at the customhouses is unsound in principle and likely to a grievance. prove oppressive in llractice. We urge _you to do what you can to brino; about the elimination of this proposed measure fro·m the tariff bill. " The strtke is lost ; tb,ere is no dispute about that. The mill opera­ : tives assert it. The radical unionists acknowledge it. The mills have Respectfully yours, F. W. TAUSSIG. RALPH BARTON PERRY. ' all the workers they desire. * * * "The lawlessness which .is Gastonia's unhappy lot to-day is not that ARTHUR N. HOLCOMBE. Enw ARD A. WHITNEY. A. M. SCHLESINGER ~ EARNEST A. HOOTON . . of the or(]inary industrial upheaval in a mill town or a mining camp. Ttere are no thumping soldiers, no street-corner barricades. EDWIN F. GAY. CHARLES FAIRMAN. "It is hoodlumism, armed and restive, inspired by what it views as a ZEcHARIAH CHAFEE, Jr. KARL W, BIGELOW. call to maintain law and Qrder and the sanctity of · the Stars and ·Mr. JOHNSON. Mr. President, f~r 'more than half a century Stripes; a community's inaliena)Jle right to repeal a sinister foreign pu,blicists and 'Students have expressed their impatience with invasion J:>y whatever method occurs at the moment. , the mop.e in which tariff legislation has been enacted. We have "The American Federation of Labor and its agencies and its .strike beard. until the statements have become trite, "Take the tariff procedure are not involved in Gastonia. When ' unionist ' is mentioned out of politics," "Provide for scientific research," and the like. 1929---- <00NGRESSIONAt RECORD--· SEN:A·TE 4119 We·have heard it not only in recent years but resounding some '1922. I am, sir,- a protectionist-eall me a high protectionist,­ quarter of a century ago from this Chamber, emanating from if you will. I believe not alone in protection for the territory a galax:y of men of whom the Senate of the United States was from which I come but I believe in protection for the terri­ proud, and who left their deep impress upon the country, came tory' from which every Senator comes; that is, legitimate and the cry for another way of making tariffs and a means by which 'honest protection for -J.ndustry on the one hand and for agri­ tariffs might ultimately be taken from the domain of politics· culture upon the other. i.nto the domain either of science or mathematical demonstration. I have seen, sir, in the course of my life the necessity for I was a part, sir, of a glorious political adventure in 1912, the P.rote.ction .in the. State in which I .was bo~: In the very sec­ most glorious since the Civil War. In that political adventure tion m which I lived, and from which I origmally came I have a new party, unhampered by tradition and uncorrupted by power, seen the land blossom wit~ the years.; I have ~een there grow endeavored to impress itself upon the American people and en- the finest almonds, for which we reqmre protection; where pre­ deavored to present a covenant with the great electorate of this viously the land was practically unproductive. I have seen Nation by which government thereafter should be conducted. olives, such as no country on earth in reality can compete with Of course, it was appropriate that that new party, then asking in quality and in character, there grow upon land that was but tbe suffrages of the people and then going before the country for a step from the ~lace where I W!J-S born. I have seen the very the first time, should make its position clear upon the QJiestion country over which as a lad With a shotgun I used to. s~oot of a tariff and upon the question of the tariff which then had g.eese, and that we r~garded ~s mere go?se l~nd, from. Irriga­ been agitating our country and upon which there had been such tion and from scientific farmmg, producmg nee that 1s of a titanic debate i.n this Chamber. better quality than that which comes from the Orient, and pro­ - The Progressive Party in 1912 adopted a plank i.n reference to duci~g it in such quantities until, ~tr~nge as. it may .seem, Cali­ the tariff and it went to the country upon that plank. That forma has become first, not only m 1ts frUits and m the pro­ plank wa~ as follows: duction of certain other things that come from the soil, but it is second to-day in the production of rice in this Nation-a - We pledge ourselves to the establishment of a nonpartisan · scientific metamorphosis that seems incredible as I look back. Through tariff commission, reporting both t~ the President and to either branch all the years, because of our conditions and because of the of Congress, which shall report, first, as to the cost of production, effi­ labor that was involved in the orchards that are ours, I have ctency of labor, a-nd capitalization, industrial organization and efficiency, seen the necessity for equalizing the conditions existing here and the general competitive position in this country and abroad of and abroad and for affording adequate protection to those who industry seeking protection from Congress ; second, as to the revenue­ were engaged in the monumental enterprises that have made producing power of the tariff and its relation to the resources of Govern­ such an empire of the domain far out upon the Pacific slope. ment; and, thirdly, as to the effect of the tariff on prices, operations of I recognized what may be required by industry in a State middlemen, and on the purchasing power of the consumer. We believe like that of the Senator from Pennsylvania or the Senator from that this commission should have plenary power to elicit information, Connecticut, and I recognize that those States and their indus­ and for ·this purpose to prescribe a uniform system of accounting tor tries are entitled to the same just consideration that I demand tbe great protected industries. for the industries of the State of California. Upon that platform, sir, the new party went to the people of I speak, therefore, to-day as a protectionist, a high protec­ this Nation. It advocated a tariff commission, nonpartisan in tionist, if you desire to put it in that way. As I speak thus, character, with the power of scientific research, to report after sir, the record will bear me out, for, as you will recall, Mr. its research to the President of the United States and to the President, it was only a couple of months ago when the tariff Congress of the United States. No man had the temerity at that discussion commenced here _when we were met with a resolu­ time in that party to argue, none then advocated that the tariff­ tion _presented by the Senator from Idaho [Mr. BoRAH] calling making power or the _taxing power of the Congress of the United upon the Finance Committee to keep the. tariff bill within the States should be transferred to any other branch or to any narrow limits of agricultural products. It will be recalled that bureau of the Government. to the re~olution which was thus presented by the Senator from When a new party had come into existence and was pioneer­ Idaho there was an amendment offered by the Senator from ing its way, with a new policy, none was heard to say in refer­ Washington . [Mr. JoNES], an amendment destructive of the ence to the tariff that there should be aught else than an Borah proposal. investigatory body which, with plenary. powers for inquisition, In ·a spirit of good sportsmanship that some geptlemen can should thereafter report to the President and to the Congress not 'understand at all, I said upon the floor then that I was of the United States. Not alone was that appeal more or less opposed to both the resolution and the amendment and that I persuasive with the people of the country, but the appeal that did not propose that the resolution of the Senator' from Idaho was made from the human aspect and from the design of those should be killed by indirection and, therefore, while being op­ who were the progenitors of the Progressive Party that govern­ posed to his resolution, I would not permit, if I could prevent it ment shou1d be taken back unto the people to whom it be­ by my vote, the amendment of the Senator from Washington longed was likewise so persuasive, sir, that the new party to be adopted. Singularly enough, after that statement . the was the second in popular vote, and in the Electoral College that amendment of the Senator from Washington was defeated by new party had more votes than the last Democratic candidate just 1 vote, and, singularly enough, after that statement the for President. resolution of the Senator from Idaho was defeated by just 1 Fate held that party in its lap; none knew whether it would vote. I recognize that any one vote upon that subject told the live or whether it would die; none could foresee what the future tale and did the job, but it happened, sir, that in the perverted might bring forth for it; but, sir, I am very proud to have sense of fair play that I had even upon a tariff bill, in that been a part of it; I am very proud to have been a part of the spirit of sportsmanship that I have ever prided myself upon new creed that it presented in its covenant to the peop1e of during my life, even though out of sympathy with it, I cast the this land ; I am very proud of the response that was made to vote that enabled after all the resolution of the Senator from the great leader of that party by the people of the United Idaho to be voted upon by this body and then cast the vote in Slates of America; and I am very proud of the impress that reality that precluded that resolution from becoming the edict that party, fighting the real fight of democracy in this land, of the Senate. So, sir, so far as any one man is concerned, so left upon the people and upon the Government of the Nation. far as any of my brethren may be concerned upon that subject, Mr. President, I mention this that you may understand, and too, I may say that I saved the tariff bill in its initial stages that some of my brethren may understand, that while others and prevented the edict of the Senate being a command to the in the days that are past may have been engaged in various Finance Committee to consider the agricultural schedules and useful avocations or in various endeavors to advance their the agricultural schedules alone. _ political or their personal fortunes, some of us years ago were So much, sir, for the history of this situation. I say some­ discussing the tariff and discussing the creation of a nonparti­ thing of this sort because I am in rather a singular position with san agency in order that we might have made· scientific re­ regard to this matter by reason of the State from which I come. search the result of which ultimately should be reported back But, sir, neither geographical location, of which I am most proud, unto the Congress of the United States. I make no apologies, nor the consequences political that may flow from any act will Mr. President, therefore, for the position that I assume to-day ever permit those upon this side of the Chamber, I am sure­ upon this subject, for it has been a position assumed when certainly not myself-from casting our votes exactly as our con­ some gentlemen who would drive us into another attitude had sciences shall dictate and exactly as we believe to be appro­ little thought of the tariff, or anything else governmental, so priate and just. far as that is concerned. · Mr. President, you will recall the year 1922 and the long bitter I am very glad, then, to trace gradually from 1912 down fight upon the tariff during that year. There, for the first through the years what transpired in reference to the· Tariff time, was presented the so-called :flexible tariff provision. ·I re­ Commission. I was a part of the tariff fight in the Senate in member the rea$0ns for its pr~entation. Those who are olde~ LXXI-260 4120 CONGRESS! ON AL RECORD-SEN ATE OcTOBER 2 in service here and who participated tn the consideration of that tectionlBt on this side of the Chamber, voting against that tariff bill will recall, as I do, that the tariff bill came from the proVision ; you will find Senator Pomerene paired and trans­ House with a mode of valuation that was unsatisfactory to the ferring his pair to me because I was against it, and the REcoRD Finance Committee and to us, and how as the days went by the showing that fact. Finance Committee of the Senate and the Senate itself sought So, sir, if consistency were to be considered, I could not be to find some means that would prevent the peculiar mode of accused of doing otherwise than I have done in the past by the valuation that had come over to us from the House-from becom• vote that I cast to-day upon this amendment I recognize, of: ing the law or from becoming the subject of great controvers1 : course, that consistency is the vice of fools; and I will not, sir, between the two Houses. upon a mere ground of consistency, put the view that I entertain-' I recall, as you who were here at that time will recall, how to-day. But I ask myself, I ask you, if you stood seven years · emergency was spoken of in relation to the tariff provision to ago against this provision upon the broadest ground that can be which we advert now in this discussion. I recall, as all of you presented to a man in public life, and upon the less defensible will recall, how we talked of changed economic conditions and ground, selfishness alone geographically-if you stood then in how the necessity existed for having a rapid, a certain, a clear, that position, what has occurred in the last seven years, sir, and a definite way provided in the bill for meeting the economic what has occurred in the activities of the Tariff Commission, to changes that might occur. No one at that time, sir, thought of alter a ..view that was then expressed and then held, and justify · making it a permanent policy of the Government. The Senator to-day a vote for a provision that then you were conscientiously from Utah [Mr. SMooT] will bear me out in the statement I opposed to ·and conscientiously fought? What has transpired make that the original suggestion was merely that the bill have in the last seven years, during the time we have bad a Tariff· a so-called flexible provision for two years--no longer than that. Commission, that would change the view of one who did not That was the way in which originally it was passed. It was believe in the :fixing of tariff rates by any other power than the done, as was stated at the time, merely, sir, to meet an emer­ taxing power in this Government? What is there, sir, in the gency, and not for the purpose of establishing a definite govern­ record of the last seven years of this Tariff Commission, and of mental policy. I say that without f.ear of contradiction, for the activities of those who have worked under it, to change the­ that is the fact of what transpired in 1922. It was only, sir, fundamental viewpoint that one may have of the American Gov­ after the bill went into conference, as I recall, that the provision ernment, or even to change his selfish idea of what is best for whereby this flexible idea was embraced in the bill for a period the territory from which he comes? - of two years was finally made general in character-then, and I ought not to advance a selfish argument upon a great ques­ then only, sir, and accepted thereafter only because of the tion such as this ; but let me say to some of these good people intense desire of those upon this floor to get a tariff bill. from the State of California who believe in the flexible tariff In 1922, sir, upon this flexible provision there was a con­ provision, so called, Have a care, ye out there! Have a care,. siderable debate. Those in this Chamber who were most learned ye who are depending solely upon the justice of your cause· in the law held the provision to be unconstitutional. Some of for what comes from the ground! And ye who have met, as. us, sir, without, of course, presuming to pass upon the law, held we met in 1921 and 1922, the power of concentrated wealth in· the .policy to be one that a country such as ours never should the East that was indulging in the importing of various articles, embark upon; but the result of it, sir, was found finally in the have a care lest in the days to come you find that you have vote that was taken upon the McCumber amendment August 11, erected a Frankenstein to your own undoing, and that you have. 1922. adopted a policy which may mean the loss of that for which I was engaged at that time, sir, in the endeavor to prevent you have fought during the days in the past. my elimination politically in the State of California. I worked Remember, ye lemon growers of California who may favor here with the tariff bill for almost a year. I ,had done what I this provision, that this Tariff Commission presented a report thought was a magnificent piece of work ; but how pride goeth to the President of the United States for a -reduction of the before a fall! I fondly imagined that what had been done in tari:ff on lemons. Remember that the President of the United behalf of the State of California at that time would find its ready States, in response to that report thus presented to him, said response; and I stayed here, forgetting that there was a primary he approved. Remember, too, that thereafter there was no, on In the State of California for tlie nomination of United States action upon it, and nothing was done--I can not recall the rea­ Senator, until the very last moment; and then, with some dis­ son, and I do not know-but remembel- how narrow was the quieting reports coming to me-of course you gentlemen here escape then;- for I know, sir, the need of our lemon people for never have disquieting political reports-but with some dis­ a tariff. I stood upon this floor when there was a Democratic quieting political reports coming to me from the State of Cali­ representative from California upon the other side of this f.ornia, I went out and found the stage was set for my elimina­ Chamber, too. I asked and I received, and I received not tion, just as it is set to-day by certain gentlemen there for my ungrudingly, from the gentleman then who rep'resented the. elimination six years from now, I think it is. But, at any State of Pennsylvania, and was the chairman of the Finance rate, I found there the stage set for the elimination of an Committee, Mr. Penrosi-I received a tariff on lemons of 2 individual who had devoted himself to a tariff here in behalf cents, while there was a Democratic representative upon the. of his State that bad moved men to say that California was the other side from the State of California. I recall that that best-protected State in all this Uni-on. I found a contest s,wait­ tariff then was the highest that had ever been accorded to our ing me that required all o-f the vigor and all of the viJ.•ility and lemon growers. - all of the activity that I possessed, and ultimately it was I recall these facts, sir, because I know the difficulties there determined. .are, sometimes, when the fight by -the grower is against -the. But, sir, while I was away ln that delectable entel'prise of powerful confectioner, the wealthy manufacturer, or the im-­ foisting myself again upon the United States Senate this par­ mensely resourceful importer. I recall these facts to those in ticular provision of the bill came before the Senate to be voted the State from which I come who believe in these pro-visions, upon; and I have been immensely amused in the last few . days so that they may understand the fate that may be in store for in re.ading some of our distinguished scribes who have been · them in the days to come if they forget the fundamental prin-. . debating as to how I stood upon this subject. There was the ciples upon which this Government is founded. . RECORD of August 11, 1922. I wired here and said I was against I say to our almond people-aye, the other day I said to a the flexible provision in the tariff at that time; and Mr. Pome­ gentleman who is beyond question of tbe highest character and rene, who then represented the State of Ohio in the Senate, repute, and represents them-as I received a telegram put in arose and announced the fact that I would vote "nay," and the REcoRD in the form of a letter by the Senator from Penn­ therefore that he would transfer his pair to me in order that sylvania in favor of this particula'r clause in the bill, I said be might vote "nay"; and there is the record, printed in the to him, "You have had your experience. You know where the CoNGRESSIONAL REcORD, Of just what occurred. fight comes from. You know where the power rests when it I shall not go into tbe history of how that happened ; but comes to getijng a tariff upon that in which you believe, and there were some people upon this side o.f the Chamber who were that is justly yours. ultraprotectionists during that long fight, and who had gathered "You know what it is to make the fight and get the tariff; and, together a number of people from the West in order that they sir, where would you rather take your chances: Behind closed might accomplish for the West what the East always accom­ doors of the Tarlff Commission, where you know naught that is. plished for. the East; and, gathering ourselves together in the , transpiring, or would you rather take them in the open in the fashion that ·we did, three of us. the high apostle of protection­ Congress of the United States? " And he said, not for publica­ God rest his soul !-Gooding, of Idaho, another, and myself, tion-and I do not, therefore, repeat who it was with whom I determined that we would not vote for this particular provision ' talked, and I will not-" Why," he said, "With the Congress l)ecause the policy was one that we feared, even as a matter of ; of the United States, every time." selfish. interest: aside from the grave policy involved, because 1 That is the story, if these good people in California who are it might return l:o plague us in the days to come. And so if was · wirfng for the ':flexible tariff provisions will but think. That that you will find Senator Gooding, who was ~ leading pro- 1~ the story. To-day, the co~ission ~ay be ours. I say_ '1929 CONGRESSIONAL RECORD-SENA·TE 4121 " ours " in the generic sense, as applying to those· who are high of a flexible ta1iff, but where shall the tariff be made? The protectionists, and who are upon this side of the Chamber. To­ power would be equally flexible under the amendment of the day the Executive may be from our ·locality and in sympathy Senator from North Carolina, as perfected by the Senator from with our views. To-morrow, though-for this country quickly Nebraska, and, in my opinion, infinitely more flexible. So, changes in its politics-to-morrow the commission may belong to after all, we get down to this one question, Who shall do the somebody else. It may be yours over there, with an entirely job? different philosophy in respect to levying tariffs. To-morrow Are you going to put part of the taxing power in the Presi­ the Executive of to-day, who is so friendly to these rates and dent's bands when it is here to be exercised by you yourselves? so friendly, doubtless, to this side of the Chamber, may be an That is all. No longer an emergency, no longer changing eco­ Executive of another character; and we are building, sir, not nomic conditions, can be argued ; nothing of the sort, for if . for a minute or an hour; we are building hereby a policy for there are any changing economic conditions, if there is any all time, in reality; and it is absurd to take any chances from emergency presented, then here that emergency may be met the selfish viewpoint; it is criminal; sir, to alter the age-long and the changing economic conditions may be remedied. ' Anglo-Saxon doctrine that confers upon the Congress of the 'Mr. President, it is the policy with which we deal. I do not United States the right of taxation and gives to it the purse. discuss the law, of course. I have practiced law for over 4Q Mr. President, in these seven years what has transpired? I years, and I have found that when a court bas decided a par­ listened yesterday to the Senator from Pennsylvania with the ticular proposition, there was little use, no matter what my utmost care. I read every line that was spoken by every man view might be, in discussing subsequently that decision. So I upon this ·side of the Chamber, and upon that, too, in reference say naught concerning the law of the proposition. That is not to this subject. The tale of the last seven years can not be what is involved here. Here is involved the question of policy glossed over, and it can not be denied. The most that can be and there is no decision on the face of the earth that can affect done· for that tale of· the last seven years is to uffer an apology, that policy and determine it except the decision of the Congress as was offered yesterday by the Senator from Pennsylvania, of the United States. . for the activities or the inactivities of the Tariff Commission. Policy is involved here. I heard my learned and my eloquent Who denies the intrigue there? None upon this floor. Who friend from Ohio [1\lr. FESs] say the other day, in response to denies what transpired in reference to the sugar tariff? None the Senator from Idaho [1\lr. BoRAH], that we never could have here, sir, says nay to the story, the sordid, the sorry, the dis­ a condition equaling that which obtained under the ·stuarts in graceful story, that was related by the Senator from Wisconsin England. Of course, be is right, and there was no statement [Mr. LA FoLLETTE] in his remarkable address before this body. that anything of that sort ever would occur. But in the dis­ Who says or dares say here that politics have not permeated cussion of the broad question necessarily we go back to the the tariff making under this commission sitting down here in the days when the question was at issue in the Anglo-Saxon mind city of Washington? Politics, sir, of course, bas entered into and before our progenitors, and from them, and their long and the making of tariffs by the Tariff Commission, or in its activi­ valiant .struggle, if we can, we learn of our priceless boon, for ties. Politics, of course, will enter into the making of tariffs which they so dearly paid. hereafter and the activities in relation thereto by a President, Ob, it is the precedents we establish in little things which and when I say "politics" I do not necessarily mean the worst finally result in the big things. It is the forgetfulness of the politics at all, but politics will enter into it as a necessity, and small ideal that finally leads to the tarnishing of all ideals. It it is nonsense to say to me that the Executive, after all, only is the surrender first of a little liberty under which a people promulgates. That is what the weak Executive may do, and, may be deprived of all liberty. That is what is presented to God knows, none upon this side would dare say that we have a· us in this discussion. weak Executive to-day. Promulgation only by the President? I remember from my historical reading the days under the Not a bit of it. The President, of course-and I do not criticize Stuarts, of which the Senator from Ohio spoke. I recall Thomas him in the slightest degree for it-will keep his hand upon Wentworth-cold, cruel, bard, unscrupulous-who bad a system every bureau and every commission be appoints. He will keep by which people should be deprived of their rights-called what? it there in order that what policies be bas, and what desires Methinks I have heard the word echoed of late. He designated he may wish to attain, he may, with that bureau or that com­ it "thorough," and "thorough" was the system that Went­ mission, ultimately accomplish. That is the natural thing in worth tried to put into operation in England under Charles I politics, and it is the natural thing in public office. in order that he might whittle away, little by little, the liberties When I was governor of a great State, and I was endeavoring the people in long centuries of struggle had acquired. to alter the policies of that State, I would have thought that I You remember, perhaps, the ship-money tax. You remember was recreant to my trust, and a pOltroon, if I had not dared to how Wentworth, striving to find a way in which be could exer­ go to the legislature with policies in which I believed, and en­ cise the taxing power without the Commons, bit upon tte idea deavored to enact those policies. So I have no criticism of the of levying ship money. You remember the old patriot Hamp­ President who seeks to put great· policies through a Congress, den, who subsequently gave his life that people's liberties might or endeavors legitimately, by argument, to carry that into effect survive; bow Hampden, fighting the imposition of a few shillings in which be believes. upon him, went to jail. The only criticism I have in respect of matters of that sort You re~~mber, too, that there was a court decision upholding _ is for the superserviceable lackeys who surround the President the legality _of ship money, and under that court decision they and who think that they are doing his bidding when, in the en­ put men in jail right and left, and Charles I went upon his deavor to shine in the effulgence of power, and, with their me­ way rejoicing, imagining that he bad solved the question of diocrity, come into an undue prominence, f!eek to destroy and, by how revenue might be derived by him in defiance of his people. mendacity or otherwise, to injure or misrepresent those who A court decision by the highest court in Britain at that time have different views. absolved Charles and his ministers and said the imposition of I criticize not at all an executive head who would desire to ship money was entirely legal. There went on the question of the carry out his policies, and I do not do so in this instance, I policy, nevertheless. The question of policy was neither settled wish this body to understand. But if an executive is worth his by Wentworth's cleverness nor by the final determination of the salt, be will carry out his policies, and it is perfeetly ridicu1ous court of last resort. The policy went on and on and on, and to say that any man will sit in the Executive Office and be a the policy was finally settled at Naseby "on that fatal day when mere recording machine for a bureau which he himself appoints Prince Rupert, with his Black Cavalry, made his last charge upon a subject in which be may be deeply interested. · ' upon the old Roundheads. You rem€mber your Macaulay, I After all, therefore, the question comes down to this, sir presume, and the refrain that runs through the Battle of where will we rest-the power to do this-Job? In what body and Naseby, when Rupert made his charge: under what circumstances shall tariffs be made? For God! for the Cause! for the Church! for the Laws! It is not a question of flexible tariff that is at issue now; For Cbarlea, King of England, and Rupert of the Rhine. not a bit of it. It may have been-in the original stages of this controversy· a question of whether or not a flexible tarifr should How, charging down upon the old Ronndbeads, who consti­ be adopted at all. That is not the question now. Ye who tuted the regiments of Old Ironsides, finally Rupert's cavalry represent sovereign peoples upon this floor, the question is not broke upon the pikes of those men fighting for what they deemed of a flexible tariff, for admittedly you get a flexible tariff by dearer than life, and there it was, sir, that the final decision the amendment of the Senator from North Carolina [Mr. was rendered upon ship money and taxation of a people by royal SIMMONS] as perfected by the Senator from Nebraska [Mr. decrees. There was the ultimate decision. Nomns]. I say that you get a flexible tariff if you desire it. " Decision " has been talked of so much upon this floor that I The question is, Shall we yield up the powel' that is here, and a I recall the early days when I used to hear described the old power which, under this amendment, we may exercise, and decision just prior to the Civil War . . We had a decision, you exercise w1 th celerity? Shall we yield it up' to the President remember, the -Dred Saott decision. You recall what in common- alone? That is the question, and that is the only question, not . parlance used to be said of it; that it gave the law to the 4122 CONGRESSIONAL RECORD--SENATE OcTOBER 2 North, the negro to the South. That was what the decision Then be proceeds to show bow utterly impossible is any such settled-the law perhaps, but not the policy. The long interne­ thing and in a couple of lines after speaking of the sugar tariff cine strife rendered the final decision. Because upon Iiarrow he says in his concluding sentence: technical grounds a decision may be rendered by the Supreme Such figures make the proposal of a flexible tariff an offense to sound Court upon the legality of an act, let us not alter the policy principles of business and an insult to common sense. that is ours, the policy that has stood through all time we have been a nation. I ask leave to print without reading a few of the excerpts A little thing, you say it is, to permit the President of the from this work. - United States to have a part of your taxing power. I deny it. The VICE PRESIDENT. Without objection, it is so ordered. It is a great thing that is proposed to be done to-day, and it is The excerpts are as follows : the entering wedge, it is the first precedent, and it is Undoubtedly there is something alluring in the notion of a benignly the precedent which will return to your undoing in the days to flexible tariff. It is as plausible as the maxim : Be good and you come. God knows what fate has in store for us; who can tell wlll be happy. Unfortunately it rests on a mistaken supposition, how these three old women, Clotho, Lachesis, and Atropos, are namely, that it. is possible to alter duties punctually and smoothly in weaving their web above us and what will befall this great such a manner as to offset with substantial preciseness changes in Nation of ours? economic conditions and thus to maintain equilibrium between im­ Twelve, fifteen, twenty years ago, if you bad told me that portation and domestic production. But even if this supposition were this country would be ruled by the maxims of the counter, I correct, which it is not, a flexible tariff would still be an expedient of would have said that you had no conception of what the Ameri­ harmful possibilities. For it should be remembered that the tariff, can Government was or what the American people were. whatever the purpose of it may be, is in fact a tax assessed on the There has been a change since the war, and a different rule import branch of international trade. And it is an essential quality obtains, and materialism is rampant throughout the land. I of a just and unoppressive tax that lt should be certain in order that criticize none and question none abo]It it at all. It is a fact, suitable provision may be made for its payment without destructive undoubted however, that here to-day is materialism. Add to consequences. There can be no safety in business plans when the pay­ it by giving a part of the taxing power away from the repre­ ments which the Government will exact from business are unknown. sentatives of the people, and you have struck the first blow at This is especially true of an indirect tax, such as the tariff is, where the liberties of America. It is upon that ground, not the selfish ultimate payment is expected to be postponed and all the intricacies ground, that our people of the West will be unable to overcome and uncertainties of shifting are encountered. Under a system of flex!- ' the power and the strength and the wealth of the East when ble rates the paralyzing sense of insecurity that attends a general re­ they ask tariffs in their behalf. vision would be made continuous. It is hard to conceive of any more It is upon the broad ground and the wise ground, the ground damaging effect of a tariff on conservative business than would result that, after all, however poorly we may show it, we stand here from a substantial and irregular fluctuation of duties. It would instill the last representatives of the people. After all, we here into the import trade a powerful spirit of speculation, and this in turn represent the great inarticulate mass of this Nation, whose would undermine the security of all domestic producers with whose voice is never heard, is never written in the scroll of these products imported goods compete. Flexible duties, therefore, instead special correspondents who sit above us. We here, however, of promoting stability would add another to the many uncertainties to represent-help us if you may, good Lord, in the performance which commerce and industry are exposed. of that duty-the great inarticulate mass that can not speak • • • • • • • for itself, and it is for us finally, as the last free body on the These dangerous possibllltles of a flexible tarUr can not be -ignored face of the earth, to stand firm, to lean backward if it be neces­ on the ground that they would be checked by a wise use of the rate­ sary in the preservation of that which belongs to just the making power. · For who is to determine what use of the power is common, ordinary, everyday American in this land. wise? For reasons already set forth it is neither expedient nor con­ Mr. President, it has been mentioned and spoken of before in stitutional to intrust the fixing of rates to the wisdom either of an this debate, but I quote, that it might be in mind, what the adjustment board, of the President, or of any other administrative President said in October, 1928. He said in a speech then agency. Still less is 1t feasible for Congress effectively to controi the delivered: use of the power by prescribing, as is done in the existing law, some definite rule for the administrative agency to follow. Consider, for The Tariff Commission is a most valuable arm of the Government. example, what would have happened in the case of sugar if the rates It can be strengthened and made more useful in several ways. But the on raw sugar had been adjusted to the difference between the cost of American people will never consent to delegating authority over the producing sugar in Cuba and in Louisiana during the recent years for tariff to any commission, whether nonpartisan or bipartisan. which the Tariff Commission has computed costs. Comparing in each Who has answered those words upon this side of the Chamber! case the Louisiana crop with the following Cuban crop the difference Who is there here upon the Republican side of the Chamber who expressed in cents per pound would have been for 1919-20, 6.588; in takes issue with those words of the President of the United the following year, 6.269 ; for 1921-22 it was 1.806 ; for 1922-23, 1.246. States? He said further: For the crops of 1923-24 the costs have not yet been computed, and it would, therefore, be impossible to forecast what rate ·would be necessary Our people have the right to express themselves at the ballot upon so to " equalize " them. Such figures make the proposal of a flexible tartif vital a question as this. an offense to sound principles of business and an insult to common But listen to those words. You have heard them perhaps. I sense. dare repeat them because they ought to be seared into the mind of every Republican Senator who is about to be called upon to Mr. JOHNSON. Mr. President, I wish that I were able and vote upon this subject. President Hoover continued in his Octo­ that I had the time to tell the tale that was told by the senior ber speech: Senator from Wisconsin [Mr. LA FoLLE:rrE] the other day con­ cerning the activities and the delay, the intrigue and the There is only one commission to which dP.legation of that authority chicanery, aye, the outright fraud and cowardice that have can be made. That is the great commlsmon of tbeir own choosing, the lurked in the activities of some of the gentlemen that were en­ Congress af the United States and the President. It is the only com­ gaged in tariff making upon the Tariff Commission. But I sub­ mission which can be held responsible to the electorate. mit a very unusual request. I have presented to the Senator Here is a statement of fact and a declaration of policy, of from Wisconsin certain excerpts from his address on that ub­ inefutable fact and of wise and sound policy. I follow Herbert ject, and I now ask leave to annex them as an addenda to my Hoover's declaration made in October, 1928, or rather I continue remarks. I ask this because the Senator from Wisconsin pre­ in the path that I blazed for myself 20 years ago in tariff dis­ sented a historical review of the Tariff Commission's activities. cussion. I continue in that path and I welcome the declaration His statement is undenied ; not only undenied but admitted. of policy on behalf of the present President of the United States. The VICE PRESIDENT. Is there objection? The Chair Who questions the accuracy of his 8tatement or its wisdom or its hears none, a,nd it is so ordered. [See Exhibit A.] policy? None questions it. Then why not stand by it? Mr. JOHNSON. Mr. President, I seldom quote newspapers. Mr. President, I have before me a little work by Thomas I seldom read here editorials from newspapers. I seldom desire Walker Page, of the Institute of Economics, entitled " Making to say anything in criticism of the press, although I might, per­ the Tariff in the United States." No one will question the abil­ haps in a natural ebullition of desire to respond, say much ; but ity or standing of Doctor Page. I d~ire to insert as a part of I read yesterday an editorial in the New York World. It is my remarks--! n ./ degree and in a little way is of no consequence, because when it by the flexible provisions of the Fordney-McCumber Act. The failure we surrender it in a little way and in a small degree we leave of the fleXible provision of the tariff act of 1922 " to take the tariff out (}pen the ability subsequently to have the way widened, and we of politics," its failure to free tariff revision from backstairs intrigue will find we have surrendered it in many other ways as well. and the insidious influence of lobbyists, its failure to assure rational Here is a contest to-day for one of ~he immutable principles tariff making ba-sed upon the impartial and careful analysis of economic of the American people. It is for u~ to resist the pressure advantages and disadvantages, are clearly illustrat~d by the fate of the that is put . upon us. We must have the . strength and the Tariff Com.mission's sugar investigation, courage to stand here for a principle that must be maintained if • • • * * • American liberty is to live in this Nation. Mr. President, economic phenomena frequently move with startling That is the contest to-day, Mr. President. It transcends in swiftness. The Tarur Commission has moved with ponderous slowness, importance any rates upon any commodities or any tariff levied or not at all. Tbe statement made yesterday by the &enior Senator from for any industry. It transcends in importance any individual's Utah that we needed the flexible provision of the taritl act in order to f"!ltJire, political or ot~erwis e. It transcends in importance any keep abreast from week to week and month to month of the changes in man's word or any man's command, no matter who he is or economic conditions will be shown to be an absurdity when the record 4124 CONGRESSIONAL RECORD-SENATE OCTOBER 2 of the Tin'iff Commission has been reviewed. The idea of the Tariff The broad terms of the statute give no basis for an opinion that Con­ Commission taking action from week to week and month to month is gress in any way wished to limit the commission in making such use preposterous, when it is known that in most of the important cases as seemed to it desirable and neeessary of its investigative powers. when the commission has acted at all it has acted after years of delay. However, as Commissioner Culbertson testified, " those persQns opposed THlll HISTORY 011' THE SUGAR CA.SlD to investigations by the Tariff Commission," who somehow learned that 4 The sugar case was pending before the eommission for nearly two their products were being considered, ' were not in March, 1923, nor years. After the commission's conclusions finally had been formulated, at any other time, for that matter, concerned with questions of abstract its report lay upon President Coolidge's desk in the White House for principle. They seized upon any technicality which for the time being nearly another 12 months. More than two years and a half after the w:ould block an examination of the facts which, when published, might petition for an investigation had been filed with the Tariff Commission d1Sclose that tariff rates were excessive. The particular technicality the President finally issued his proclamation stating that although a which in March, 1923, fitted the purpose of the opposition was to deny reduction in duty had been recommended to him, he felt that existing the right of the Tariff Commission to proceed upon its own initiative." conditions warranted a postponement in putting the commission's rec­ To forestall decreases in some scandalously high duties contained in ommendation into effect. This was on June 15, 1925. Not until some the Fordney-McCumber Act, ultra-protectionists appeared ready to forego time in 1926 was the text of the report embodying the commission's the possibility of increases in others in which they were interested. In recommendations exhnmed from the obscurity in which it had been order to block any important investigations which might result ln lower buried, and finally published for the benefit of the public, for whose duties they hoped to keep the initiation of Investigations as much as advantage the flexible tariff had supposedly been enacted. possible within the President's own hands. Commissioners Marvin and An application for an investigation of the tariff on sugar, to deter­ Burgess, avoiding the more significant cases, occupied the commission's mine whether a reduction in duty had not become justifiable, was tiled time with discussions of wall pockets, paintbrush handles, and other 14 with the Tariff Commission on November 16, 1922-two months after tariff trivialities." They insisted, however, that until the President the Fordney-McCumber Act became effective-by the United States Sugar had returned to Washington no investigations should be begun at all. Association, representing principally the refinerS and growers <>f Cuban Part of the commission's investigations had been blocked successfully sugar. The commission, busy in working out methods of procedure to for the time being. Ultimately the commission telegraphed the Presi­ ' deal with the vast task which the flexible provisions impc>sed upon it, dent asking whether his request for delay had been intended to apply as found It impossible to take action immediately upon this and a large well to those cases in which applications for investigations had been number <>f other applications filed with it. filed. When on March 16 no reply had arrived, the commission took During the fall and winter the commission coDBisted of five, rather the responsibility of <>rderlng investigations of a new list of commodi­ than of six, members, inasmuch as Doctor Page, who had served the ties. This new list omitted unmanufactured wool and tops, concerning commission with distinguished ability as its chairman, had retired. which Chairman Marvin was interested because of his late Boston asso­ He believed that, burdened by its new duties imposed by the flexible ciations, as well as china and other pottery ware, about which Commis­ provision, the Tarifr Commission ·would be unable to maintain the high sioner Burgess had been greatly concerned not many years before. standal'd of public service which it had attained during the preceding Petitions for action by the commission had been filed in all of the cases six years; zi.Ild how prophetic, Mr. President, was Doctor Page's predic­ instituted. · tion in that respect! There remained Commissioners Culbertson, Costi­ The grapevine telegraph next came into play to threaten further gan, and Lewis, who more optimistically believed that the commission's inaction. On March 17 the com.mission, through Chairman Marvin, standards could be maintained, and two of President Harding's ap­ heard that a Washington newspaper man had received a telegram from pointees, one of whom, Mr. Burgess, was involved in the so-called lobby Secretary George Christian stating that the "Tarll'f Commission will Investigation, and Chairman Marvin, who, because of his Boston asso­ take no action unt1l the President's return." The Tariff Commission ciations, was a protectionist of the 44 ultra" variety. once more telegraphed to Florida, and in reply was informed definitely COMMISSION RELUCTANT TO ACT UNDIIIR FLEXIBLE PROVISIONS that the President expected the commission to go ahead with those investigations for which applications had been filed. A week later the Comm1ss1oner and Vice Chairman Culbertson had been one of the formal orders in the sugar and other cases were published. authors of the flexible provisions. As he testified before the select com­ 4 PRESIDENTIAL CONTROL EVIDENT EARLl: mittee, he ' was slow to believe that Mr. Marvin and Mr. Burgess were not interested in an active forward program under the elastic section." 'l'he President's conference with the Tariff Commission upon his return Mr. Marvin, whom President Harding had appointed as the commis­ from Florida was held on April 20, !"923. It resulted principally in a sion's chairman, continued to neglect his responsibility as executive statement for the press announcing that whenever a preliminary survey head of the commission, and took no steps to apply the provisions of the had disclosed "sufficient grounds under the law" and no petition had 4 law to the many cases already submitted. ' Faced with the possi­ been filed, the commission, after conference with the President, would bility of continued inaction," Vice Chairman Culbertson <>n J"anuary 2, " order such formal investigations • • • as the facts may warrant 1923, proposed what he considered a moderate program of acti<>n. The and the public interest require." commission-after some heated debate-v-oted unanimously that the ad­ This statement decided little or nothing. It left open the question visory board of specialists which it had set up should prepare plans <>f whether the positive approval of the President would be required before investigations for some 17 articles. Petitions asking for relief with the commission could proceed with investigations upon its own initiative. regard to some <>f these commodities had been filed ; investigations of As Mr. Culbertson said: others were proposed upon the theory that the commission had power "At bottom the issue was not a technical one of whether we could or to undertake investigations of duties upon its own initiative. could not proceed upon our own initiative. It was whether we would Plans were submitted in due time. Chairman Marvin, however, still order investigations of what one man referred to as 'the sore spots in showed no inclination to act. Commissioner Culbertson, therefore, on the tariff act.' • • • The very fact that the President retained ·a March 2, 1923, proposed that the commission formally order investiga­ control over the beginning of 1nvest1gations was an invitation to the tions of sugar, pottery, aluminum ware, and sundry chemical, iron, steel, interested parties to continue to exert their influence upon him." and woolen manufactures The resolution was ·adopted by a S to 2 During the remaining four months of his life President Harding vote. Commissioners Marvin and Burgess voted in opposition. found cause enough to regret the course of interfering with the commis­ Steps to stop these inquiries were taken immediately. Commissioner sion's work upon which he had thus embarked in March and April. Burgess later admitted that be had at once written to the President The opponents of suggested investigations rushed directly to the White protesting against the c.ommlssion's action. President HardiBg was House. To avoid embarrassment from this source the President soon equally eager to protect all tariff-sheltered producers from "anxiety." found it necessary to request that no publicity should attend his consul­ Late on the next day he telephoned to Commissioner Culbertson settlng tations with the Tariff Commission. forth his own distress. Commissioner Culbertson therefore wrote to " Take the tarl1I out ot politics l " Mr. President, the enactment of the President to reassure him, pointing out that the commission's pro­ the flexible provision has put the Tariff Commission into politics and gram was entirely in accord with the policy of Congress in providing for destroyed its usefulness. the flexible tarifr and with Pl'esident Harding's own public utterances Thus far all tarifr investigations had been delayed, but as yet there and suggesting that an investigation of a mere handful among the 1, 700 had apparently been no specific intervention in the sugar ease on the tariff items covered by the Fordney-McCumber Act could hardly be part of the White House. This did not come until after President interpreted as an opening up of "the whole tariff issue." A hasty Coolidge had succeeded President Hardlng in August, 1923, six months reply from the President said tha.t be bad been unable to give a after the sugar investigation had been commenced, as I have already .. studied reading " to the communication, but urged that the cOmmission pointed out. During the summer and fall the necessary field work to wait until he had returned from the vacation in Florida for which he ascertain domestic and foreign costs ot sugar production, and the tabu­ was just leaving. Acceding to his request, the commission on March 6 lation of the data secured by the field investigators, went forward, voted that its resolution commencing these investigations should lie although, as Doctor Bernhardt, ehief of the commission's sugar division, dormant until a conference with the President had been held. said, there were " obstacles to every necessary step." The obstacles There was no doubt that the commission had full power to go ahead resulted from a sharp cleavage among the commissioners. Commis­ whenever an application for an investigation had been submitted to it, sioners Culbertson, Costigan, and Lewis fe1t that inasmuch as the sugar although the law was silent upon this whole question ot procedure. case constituted the most important l.uvestigation pending before the I929 CONGRESS! ON AL RECORD-SENATE ~125

commi88ion It should be expedited. CommiSSioners Marvin and Burgess Mr~ NoRRIS. The real work of the comml!Jsfon on the sngar tarift constantly sought more and more tlme to reflect upon the sugar cas-e. schedule, however,_ commeneed, and this controversy aoout which the This policy of protracted reflection, early adopted by Commisswners Senator has been telling us In rela&n to the disqual1ftcation question Marvin and Burgess, was concurred in ent:husiastically by Commissioner arose when Harding was President. :Am I not right in that? Glassie, whom President Harding, after seeking diligently for a high­ Mr. LA FoLLETTE. ~e Senator is correct. Commissioner Glassie was protectionist Democrat, had chosen as Doctor Page's successor. appointed by President Harding in Mareh, 1923. President Harding COM.MISSIONU GLASSIB A.PPOINTED TO COMMISSION died in August, 1923, and, of course, President Coolidge succeeded him at that time. In the meantime, as I stated before, the investigation and Mr. Glassie had joined the commission early in Marcll. Louisiana the field work in the sugar case were going forward during those monthS, men had supported his appointment. His wife was the daughter of a because, as the Senator knows, once one of these investigations is started, former Louisiana Senator. Mr. Glassie had had close and friendly rela­ a staft' is sent out into the field to get production costs. The work was tions with men vitally inteTested in Louisiana sugar, and his wife and going on in the sugar ease, and Commissioner Glassie, appointed Jn the members of her family were the owners of a plantation and mill March, 1923, by President Harding, served until August, 1923, under company. Commissioner Glassle readily and frankly admitted this President Ha.Tding, and then under President Coolidge. _ financial interest in sugar, although he minimized its importance. The situation, as I pointed out to the Senate, had reached the point It must be remembered that sugar duties had been a subject of bitter where Commissioners Culbertson, Costigan, and Lewis were defeated in controversy so long as the.re had been a tarit! on sugar. I say that in their eft'orts to prevent Commissioner Glassie from sitting in the sugar my judgment there have been more bitter controversies over the sugar case, in which he had admitted that his wife and her brothers bad a very tariff than over a.ny other schedule in tarlit bills. It therefore had be­ substantial interest. He testified that in market value it amounted to come as much of a political question as an eeonomic question. In about $14,000, but lt was sufficient, he testified, to support one of the Louisiana certainly its political signifieance had been so great for brothers, who managed the plantation and the mill, and that dividends decades that that State uniformly had sent to the United States Senate had been paid upon stock. In a letter of .January 9; 1924, six days before htgh-tarur Senators. the public hearing on sugar was to be held by the commission, Commis­ It was, therefore, diftieult to eoneeive tbat anyone representing the sioner Costigan warned the President that the commission's proceedings ~ulsiana inte1-ests or clol!ely identified with them would not be biased in the sugar case " will be subject to severe and justifiable criticism if In some degree concerning the sugar question. Recognizing this, Com­ any of the commission's findings of fact may be plausibly attributed to missioners Costigan, Culbertson, and Lewis naturally assumed that any prtvate interest." Commissioner Glassie's long experience as an attorney would compel him to tnsist upon his own withdrawal from the sugar ease in order to COMMISSIOND GLASSIE'S RIGHT ~ SI'.r IN SUGAR CASJJ QUES'l'IONED . preserve the Tariff Commission's reputation for judicial impartiality. Thus the issue involved in Commissioner Glassie's right to partld· Mr. Glassie toought otherwise. pate in the case was· put squarely up to the then President of the United This issue of Commissioner Glassie's sitting in the sugar case cropped States, Mr. Coolidge. President Coolidge, following his custom in the up repeatedly during the early stages of the sugar investigation. It re­ sugar case made no written reply to Commissioner Costigan's letter. ceived the fullest dlscusslon in connection with the attempt to revise Instead he invited the commission to come to the White House on the the commission's rules of procednre inasmuch as Commi..•~sloner Glassie, following afternoon. because of his long legal experience, had been appointed as a member of The repeated obstaclee thrown In the way of important investigations ' the committee to draft the new rules. under the flexible provision. the friction within the commission and the One of the rules under consideration by the committee was one pro­ determination of Commissioner Glassie to sit in tbe sugar case despite viding for the disqualification of any commissioner or commissioners the interest of his family w~re threatening to destr()y all public contl· in any pat'ticular investigation who had a personal interest in the out­ dence in the flexible tarttr system. The issue presented by Commis­ come of a case. This proposed rule followed the well-established prece­ sioner Glassle's determination to sit in a ease in which his family was dents in the Interstate Commerce Commission, and the broad princi-ples directly interested presented a question ot ethics. laid down in the .Judicial Code. As I said, that question of ethics was presented squarely to the Presi­ Mr. President, here was Mr. Glassie, appointed on the commission, dent of the United States. frankly admitting that his wife and her brothers had a substantial During the more than two hours that the commissi~n conferred with interest in a Louisiana plantation and sugar mill. He had been President Coo.lidge be gave no indication as to his approval or dis­ 1 appointed because of his lon.g experience as a lawyer on this committee approval of Commissioner Glassie's rourse. At the White House con- of the Tariff Commission to draw up rules of procedure. Mr. Glassie ference Commissioner Glassie announced that he proposed to sit at ; not only insisted In sitting in the sugar case. but he used his position the public hearing on sugar, exp-lain the interest of his wife and her as a member of this committee on rules of procedure to prev.ent the brothers in a Louisiana sugar plantation and mill, and to ask for adoption of a disqualification rule concerning eases in which commis­ comments from those attending the public hearing. It was pointed · sioners were interested, and frankly declared- out to President Coolidge by the q>mmissioners who felt that Commis- . " The rule would unquestionably, if adopted, relate to me." sioner Glassie was disqualified that " unfortunate public conseqnenees " He impatiently brushed aside all thought of approvtn;g such a rule would &w from this breakdown of the commission's judicial or quasi­ and never, according to Commissioner Costigan's testimony, made any judicial character. President Coolidge di8missed the commission, how­ attempt to propose an alternatlv~ more satisfactory to himself. ever, after intimating vaguely that " something might occur to me " Mr. President, confronted with the fact that Commissioner Glasste and that he might have a message to send to the eommission before ~ was determined to sit in the sngar case, in which his wife and her tts public hearing on sugar began. ! brothers bad an interest, the members of this committee on procedure, Mr. President, is there any lawyer- in this body who, confronted unable to secure ~ report of a disqualification J!ule from that com­ with a question ot ethics of this character, would have the slightest mittee, proposed that the rule should be adopted separately by the hesitation in advising a member of a commission appointed by him that whole commission. Commissioner Glassie, joined by Commissioners if the commlssioner bad a personal interest or his family had an inter­ Marvin and Burgess, voted against the motion and the adoption of the est in a matter pending before that commission, he should withdraw rule was blocked in the commission by a 3 to 3 vote. from participation in the case l And yet the President of the United COUMISBIOND GLABSI»'S FAMILY INTPIRESTJ:D IN SUGAR States, Mr. Coolidge, eon.fronted with this issue -and discussing it for more than two hours with the commission, dismissed the commission Commissioner Glassie, the man who admitted that his wife and her with the vague intimation that something might occur to him or th~t family bad an mterest, continued to participate tn the diseusslon of be might send some message to the commission before the public hearing whether or not a disqualification rule should be adopted. on . January 15, 1924. Something did occur to him, Mr. President. We should remember that the commission bad voted at a previous The President did send a message to the commission. The message meeting that January 15, 1924, should be the date set for the public from President Coolidge, delivered by word of mouth, not in writing. hearing in the sugar caae. It was evident that Commissioner Glassie arrived balf an hour before the commission was to open its hearing was determined to sit in the sugar case and that he would be supported on sugar on January 15, 1924. Chairman Marvin announced that he in this decision by CommissiQners Marvin and Burgess. The efforts of was authorized to say that the secretary to the President had informed Commissioners Culbertson, Costigan, and Lewis to persuade Commis­ him that the President " wh!hed Mr. Glassie to be informed -that he sioner Glassie that his connection with Louisiana sugar interests through expected him to do his duty as he sees it and that he would stand his wife should persuade him to withdraw from the case had taned. Commissioner Costigan, confronted with this situation, then informed back of him." other members of the commission that he felt constrained to submit the PRESIDENT COOLIDG» BACKS UP COMMISSIONER GLASSIB IN SUGAR CASJI facts involved in this critical situation to President Coolidge. The President of the United States had thrown the great weight of his Mr. NoRRIS. Mr. President, for the sake of clarity, I wish the Sen­ office behind Commissioner Glassie, an interested party in this hearing ator would state again, if be has already stated it, that now he is taking on sugar, and had informed him that he would "' stand bac.k of him" up something which occurred after Harding had passed out of the presi­ in his decision. The President already knew what Mr. Glassie's deci­ . dential office, and it was occupied by Ml'. Coolidge, and this investiga­ sion would be ; he already knew and had been informed on the previous tion was going on. The appointment of Glassie was made, was 1t not. afternoon that Mr. Glassie was determined to sit in the case in which by President Harding? his wife and his brothers-in-law were interested; and yet the President; Mr. LA FoLL1l'rl'E. It was. sends il message by word of mouth through Commissioner Marvin that- .4126 CONGRESSIONAL RECORD-SENATE .be would .. stand back of " Commissioner Olus1e in his aetlon in the a proclamation increasing the duties on wheat and wheat fiour and , ease. Under- those circumstances there can be no question that the lowering the duties on bran and mill feeds. The wheat report was soon President realized that the effect of this message would be to assure made pubHc. Commisstone!' Culbertson testi1ied : Commissioner GJ.assie's participation· in the sugar Cll8e. The President's "It- . infiuence was thus thrown behind Commissioners Marvin, Burgess, and That is, the wheat report- Glassie, who had demonstrated by their aetions that they had no desire " was studied assiduously by representatives of the sugar industry. to press the sugar investigation to an early and impa.rtial conclusion. They saw that the application of the same principles to the faets in the "Take the tariff out of politics!"· Why, ~- President, the con­ sugar case meant a decrease in duty." . ferring of this power upon the Tariff Commission has plunged the From this tl.me on the divis1on in the commission over questions commission into a very maelstrom of polltics and intrigue. concerning the economic factors to be conmdered in the sugar case Commissioner Glassie, finding that he had the support of the Presi­ became more and more irreconcilable. The chief of the sugar division dent behind him, made his promised statement at the public hearing submitted on May 15, 1924, a preHminary report to the commission o'n on sugar concerning the Interest of his wife and family in Louisiana the results of the sugar investigation. Commissioner Costigan testified: sugar. Commissioner Costigan publicly challenged Commissioner Glas­ " There began at this time and continued practically until the report . sie's right to sit in the case. On that afternoon Commissioner Glassie on sugar reached the President • • • a long series of filibustering announced that be bad decided tu sit in the sugar case. 1n tetTuptioilB." CONGRESS ENACTS LEGISLATION TO DISQUA.LIF'I COM1USSIONER GLA.SSIE . Carried on first by Commissioner Glasste, and after his retirement from the case by Commissioners Marvin and Burgess: . Mr. President, I want the Senate to contrast the reaction of the On May 23, 1924. as I have previously said, Commissioner Costigan legislative branch of this Government, which is constantly subjected to moved that consideration of the sugar report be begun on May 26. · , attacks. When confronted with the ethics of this issue raised by Commissioner Burgess attempted to secure further delay by insisting Commissioner Glassie's. determination to sit in the sugar ca.se, the that the report of the sugar division should have been referred first to Congress of the United States did not take this matter under advige. the commission's advisory bQ~rd. A motion to this effect was made by , ment and then, after deliberation, announce that it stood behind Com­ Chairman Marvin, but was rejected by a vote of 3 to 2. Commissioners . missioner Glasste in his determination to sit in that case in which his Costigan, Lewis, and Culbertson voted in the negative, and Commis­ wife and her family were interested. No, indeed ; as soon as this sioners Marvin and Burgess 1n the affirmative. public challenge of Commissioner Glassie's right to participate in the sugar case had been brought to the attention of Congress it took :m: I'ABT.E MEETING IN SENATOR SMOOT'S OFFICE action thereon. The independent offices appropriation · bi~ passed by Mr. President, it became evident that the commission was about to , the House of Representatives on April 3, and by the Senate on April 12, proceed to consider the report on sugar. This oecurred on May 23, provided- 1924. On May 24, following the decision of the commission to take up " That no part of this appropriation shall be used to pay the salary the consideratron · of the · sugar report, Commissioner Culbertson was of nny member of the United States Tarltr Commission who shall here­ invited to come to the office of the senior Senator from Utah [Mr. after partictpate in any proceedings under said sections 315, 316, 3i7, SMOOT] in the Senate Office Building. Commissioner Culbertson found ' and 318 of said act, approved September 21, 1922, wherein he or any there Members of Congress from sugar-growing States and lobbyists and ­ member of his family bas any special, direct, and pecuniary interest or attorneys representing sugar interests. An hour's conference took place. 1n respect of the subject matter in which be has acted as attorney, I ask Senators to remember that the sugar case was pending in the · legisla tlve agent, or special representative.., commission; that a public hearing bad been held; that arguments had Mr. President, I contend that the determination of Commissioner been ms,de, briefs submitted, and the report of the chief of the sugar Glassie to sit tn the case in which his wife and her brothers had a division was pending before the commission for consideration when pecuniary Interest involved a questlop of ethics pure and simple Commissioner Culbertson was invited to come to the office of the seniol' · which any country lawyer 1n the UnitE:d States would have no difilculty Senator from Utah, there to meet with attorneys, Members of Congress · in determining ; and yet we find a situation where when that issue was from sugar-growing districts, and lobbyists. As I have said, an hour's fairly presented to the President of the United States he announced conference took· place. Spokesmen for tlie sugar interests presented that be would stand behind Commissioner Glassie, when be knew that objections to the methOd used by the commission in the wheat and sugar CommisSioner Glassie was determined to sit in the case ; and it took cases. an act of Congress to prevent this member of the Tartir Commission Here was an ex parte hearing, a member of a quasi-judicial com· from participating in a case in which be had frankly admitted the mission in the office of a United States Senator listening to ex parte interest of his wife and other members of her family. Contrast the arguments concerning a case which was then pending in the commission. statement made by President Coolidge through Chairman Marvin, of I quote from Commissioner Culbertson's contemporaneous memo· the Tarift Commission, with the statement made by Representative random: WooD, of Indiana, when this amendment was under consideration. " I was conscious "- Representative WOOD then said: Wrote Commissioner Culbertson­ "Let us take the case of a judge upon the beneh. Very often his " of the fact that this conference "- conscience says to him that because somebody has some spite against That is, the one in tbe office of the Senator from Utah- him, a man might feel that he was being prejudiced, and on his own " was indicative of a drive by the sugar interests to prevent, 1t motion he does not sit in a partlcula! trial. In order that suspicion possible, a report by the Tarift Commission on sugar ; and in my re­ might not arise against any commissioner, good conscience ought to marks • • •"- dietate to him that if he bad any personal int~st, or his family had, That is, the remarks which he made at this conference-- in any hearing he should not sit. I have no respect for a man who "I endeavor to give the sugar interests an assurance of fair treat­ would sit under such cl:rcums~ces." ment at the hands of the Tariff Commission, and at the same time to But, Mr. President, even this action by both Houses of Congress did give them to understand that the Tarur Commission is a quasi-judicial not at first discourage Commissioner Giassie from further participation body functioning under a principle laid down by Congress, and that the decision which we reach will be made fearlessly and in accordance· tn the s:ugar case. On May 23, 1924-about six weeks after the bill containing the amendment to which I have referred was passed by both with the facts warranted by the record, regardless of any outside be bear." Houses of Congress-Commlssioner Glassie made a point of order against influence which may br

tin, of the Department of Justice, when Mr. Slemp asked Commis­ ing opinion followed on the next day. The case was nQW, after all these 1 sioner Culbertson to come over to the Ex-ecutive Offices. agonizing months, in the hands of the President. Press statements 1 Mr. Slemp asked whether he remembered correctly that Commissioner announced that an early decision might be expected. Culbertson had at one time expressed a desire for a foreign appointment. COMMISSIONER LEWIS ASKED TO RESIGN IN ADVANCE Commissioner Culbettson admitted that this was true, but said Hlat While the sugar report was thus in the President's hands, the term President Harding had insisted that he should remain on the Tariff of Commissioner Lewis expired. Commission, and that he also could not afford an ambassadorship be­ At least twice-----{}n May 22 and on July 25-President Coolidge had cause of the expense involved. Other positions he was not willing to assured Commissioner Culbertson of his intention to reappoint/ Com­ consider. The conversation ran on. Mr. Slemp finally went in to talk missioner Lewis. Early in June the Democratic members of the Ways things over with the President and came back saying, in substance: and Me~ns Committee of the House of Representatives sent to the "That the President was interested in Mr. Culbertson's future, and de­ President letters recommending Commissioner Lewis's reappointment. , sired him to be happy in his work, and was disposed to see that he There was no reason to suspect Mr. Coolidge of harboring any con- . would have an opportunity to round out his political career." · trary intentions, even though Commissioner Lewis had found it im· 1 Mr. Slemp concluded that in the end it would be possible to work out possible to comply with the President's request for a delay of the some appointment or other in which Commissioner Culbertson would be sugar report. I interested. Late in August, 1924, it became known that a so-called "national ! In my judgment there is not the slightest reason to doubt that Com­ tariff council" had launched a campaign to raise $10,000 with which : missioner Culbertson would .under no circumstances have accepted an to convert the South to ultra-protectionism and to further the selec­ appointment which would have involved running away from the sugar tion of a high-tariff Democrat to succeed Commissioner Lewis. case. At the same time to contend, as Mr. Culbertson later did, that On the morning of September 8, ·1924-the day after the expiration the President had not sought to tempt him with other positions in of Commissioner. Lewis's te.rm:-P.resident Coolidge called .Commissioner order to get Commissioner Culbertson out of the Tariff Commission re- · Culbertson to the-White House. The . President stated that he intended quires a very strained construction of the events of the 21st of July to reappoint Commissioner Lewis, but handed to Commissioner Culbert­ and of the preceding months. It is clear enough that at least some son a sheet of paper upon which to take down a letter which the Presi­ of the gentlemen who supported Mr. Culbertson's candidacy for a diplo­ dent wished Mr. Lewis to write. Its text, as dictated by the P}esident matic post were moved by reasons other than a simple friendly interest to Commissioner Culbertson, read : · in Mr. Culbertson's happiness. It is only necessary to call attention "I hereby resign as a -member of the Taritr Commission, to take effect to one of the more Informing and interesting pages of the Finance Com­ upon your acceptance." mittee's late hearings on the sugar schedule. The President about to reappoint a commissioner, and that commis­ • • • • • sioner had not acceded to his request concerning_ delay of the sugar SUGAR REPORT Ji'INALLY REACHES PRESIDENT case. The President, in informing Commissioner Culbertson that he I now wish to return to the chronological history of the ~ugar Investi­ intended to reappoint Commissioner Lewis, gave Commissioner Cul­ gation itself. bertson a sheet of paper and said: "Here i.s a letter that I want The situation on July 25, 1924, the day before the date upon which Commissioner Lewis to write." That letter was an unqualified letter of the final meeting in the sugar case was to be held, was graphically de­ resignation. In other words, the President, in exchange for a reap­ scribed during the committee's hearings by Commissioner Costigan when pointment upon the commiss~on, demanded in advance from Com­ he said: missioner Lewis, whose term had expired, a letter of unqualified •·esig• "Let us recall for a moment what the experiences of the Tartlr Com­ nation. mission had been. We ha(l been adyised that the President would The President knew that Commissioner Lewis-as the commiSSioner uphold Commissioner Glassie in his participation in the sugar investi­ later said himself-" wanted thi.s reappointment and wanted it very gation. • • • On January 15 and on July 9 (when the cryptic badly." Commissioner Lewis also knew that his retirement might butter message reached the commission) • • • we were again led very possibly be followed by the selection of some one who, instead of to believe that the highest executive of the Government, to whom we maintaining the h.igh standards for which he had fought on the com­ gave respect and with whom we had very close official relations under mission, would be of the same stripe as other Harding and Coolidge the provisions of this act, was not interested in having us complete the appointees. The President may well, therefore, have thought that sugar report; at least, was not favorable to its completion under the the chances of getting the resignation of Commissione1· Lewis in advance conditions which prevailed. Subsequent to these incidents Commis­ were good. If he did hope for this, he seriously misjudged Commissioner sioner Culbertson had been threatened with public disgrace through a Lewis. charge referred to the Attorney General, which charge was leveled at On the afternoon of September 8 Commissioner uwis went to the him, as I before stated, by a disappointed applicant for tariff favors. White House. Saying, " Mr. Lewis, I am going to reappoint you," the Subsequently the Attorney General advised us that he had been asked to President reached for the appointment certificate and proceeded to sign it. hurry this report to the White House. Again, promises of distinguished He h-ad half completed his signature when he asked, " Did you bring consideration had been given to Commissioner Culbertson by the secre­ that letter with you?" When he discovered that the letter was not tiu·y to the President. With these promises and these fears operating forthcomiDg, he stopped momentarily in high disple~sure and then , almost simultaneously on his mind, Commissioner Culbertson, as he resumed the signature, saying, "Well, it does not matter; you will hold reported the incident to us, was asked whether it would not be prac­ office only at my pleasure in any event." Noticing ·the- President's dis­ ticable to delay· the sugar report." - appointment that be had .not brought his -resignation with him, Com­ Commissioner Costigan's concern ov.er this succ~sion of events be­ missioner Lewis suggested, "Mr. President, perhaps if you were to hear came so great that he felt it his public duty on the evening of July 25 the considerations which determined me to this conclusion you might to advise the late Senator La Follette-without touching upon the agree with my point of view," to which the President answered only, confidential aspects of the sugar case then pending-that in his judg­ " Oh, no ; I would not." ment- He pushed the signed commission over toward Commissioner Lewis, " unless something could be done in a way unknown to me and beyond who, noticing the President's continued displeasure, said, "Well, now, my ability to Indicate, I feared that the performance of the commis- ; Mr. President, you and I are the-only men in the world who know that sion's semijudici!!l functions _would be interfered with and the sugar paper has been signed. Just destroy it." '-' Oh, no," said the President. r_epot't would not reach the White H~~" _ "I• won't do that. I had no present intention or: thought of using it at 4130 CONGRESSIONAL RECOR.D-SENATE OCTOBER 2 all. My only fdea was that tt a separation became necessary between This, Mr. President, is the history of the case which, considered l.n us it might be accomplished more pleasantly in this way.H He might all of its implications and effects, exceeded by far in importance all have added, Mr. President, more speedily, and without any qualifying other cases which the Tarifr Commission has examined with any degree statement being made by the commissi<>ner who resigned. of thoroughness under the flexible provisions. • • • • • • • • The commission which the President had signed was only for a recess OTHER CASES UNDER FLEXffiLE PROVfSIONS appointmetJ.t, until the end of the next session of C<>ngress. Mr. Lewis's The histories of other cases-in so far as the details became available name was never submitted to the Senate and he therefore left the during the Senate committee's hearing1i-show less evidence of direct commission on March 4, 1925. Commissioner Culbertson, during his ap­ interference from the White House in the commission's investigations. pearance before the select committee, interpreted the President's desire Perhaps less was considered necessary after the spring of 1925, when for the unqualified letter of resignation of Mr. Lewis as a mere device the superprotectionists gained- almqst complete control of the Tariff for putting the President in possession of something with which to Commission. Also, most of the cases-especially those involving possible bargain should the elections of the following November turn into a decreases-were of very -minor importance. The evils flowing from the Democratic victory and thus open the way to obstruction of any other organization developed under the present flexible provisions-not only appointments which the President might wish to submit to the short in the character of the appointments made by two Presidents, but in session of Congress. the continual running to and fro between the commission's offices and Mr. President, I refrain from commenting upon the ethics of that the White House-nevertheless left their mark upon many cases other procedure, even putting Commissioner Culbertson's interpretation upon it. than that of sugar. President Coolidge's own statements, as reported in Commissioner President Harding, while insisting that all such cases should be called Lewis's entirely uncontradicted testimony, make it apparent that other to his attention before the commission acted definitely, early recognized considerations were in the back of the President's mind. that the commission had the power and the duty to search out cases FURTHER DELAY IN SUGAR CASE which appeared to require investigation, even though no petition had The Tariff Commission reassembled in the fall of 1924, but instead of been filed. In the spring of 1923 the commission therefore submitted to receiving from the President information concerning his final decision President Harding preliminary reports indicating that investigations in the sugar case a series of letters began t<> arrive from the White should be made concerning the duties on lemons and on cotton hosiery. House asking for supplementary information. The commission pro­ The statement discussing lemons was signed by a majority of the ceeded to attempt to supply the additional information sought by the commissioners. Chairman Marvin opposed the inve tigation warmly. President. Efforts to expedite acti.nt. Extraordinarily protracted delay--extraordinary even for the Tari1f Nothing further was done in the matter until March 17, 1926, when Commission-has been the usual fate attending cases which suggest a on the eve of the select committee's hearings Chairman Marvin sug­ decrease in tariff rates. It is true that the decrease in the duty on gested to the President that it would be well to forestall criticism by bran and mill feeds went through in less than four months, but this notifying the commission that he had no objection to the publication of was because of the strong pressure in favor of a hurried completion of the sugar report. The President gave no indication of having received the entire investigation of wheat and wheat products, it being then a the letter, and Chairman Marvin rested without doing anything further presidential campaign year. Also, the corr;mi8sion's great reduction until a subprena, calling for a copy of the report, had been sent to the gesture in the bobwhite quail case was completed in a little over four commission by the select committee. Another underground message was months. But this had the solid and enthusiastic support of the admin­ at last forthcoming, so that the chairman was able to advise the com­ istration, as the result of Commissioner Dennis's repeated representa­ mission "that he had been informed from the White House that the tions to President Coolidge that some case involving a reduction ought President de!:!ired the commission to make its decision with regard to t<> be undertaken, to prese1·ve a_reputation for Impartiality. submitting those reports." Three other actual reductions have been made. In March, 1923, some Thereupon, having heard its master's voice, the Marvin-controlled one succeeded in inserting in the commission's agenda the paintbrush­ majority of the commission plucked up its courage sufficientl.J at last to handle case. The complicated economic prob l em~:~ involved in the pro-­ give publicity to the te'xt of the sugar report. ductiOD. of paintbrush handles required 42 months for their solution. 1929 CONGRESSIONAL RECORD-SENATE 4131 Then there was the cresylic-acid case, over which the commission The most magnificent of all records of delay was made in the linseed­ brooded for 51 months. Its record for delay in cases recommending re­ on case. A report, recommending a decrease in duty, was sent to ductions in duties was made in the case of phenol. The phenol investi­ President Coolidge on March 3, 1925. Eleven months later the Presi­ gation began on May 4, 1923. ..Not until October 7, 1927-54 months dent, remembering the report, requested additional information, although later-was the report transmitted to the Presic'!ent. Yet the Senator the report bad been, Commissioner Costigan told the Senate committee. from Utah told us on yesterd.ay that we needed the flexible provision of .. by all odds the most carefully prepared of any of the chemical reports." the law in order to have a week-to-week and month-to-month adjustment A second report was not forthcoming until June 19 of this year; so that of taritl rates. Mr. President, Congress can generally revise the tariff six years and three months had elapsed since the commission's investi· qu.lcker than the Tarili Commission can carry through a case which looks gation in this case was instituted. to a reduction in a rate of duty. .... · A little more than 80 investigations under the provisions of section · No one can deny that many of the cases submitted to the Tariff Com­ 315 had been begun by the Tariff Commission when, last March, Presi­ mission have involved terrifically complicated problems-so complicated dent Hoover placed an embargo upon new cases pending the fate of the that wy rapid readjustment would necessarily have been based upon bill now before us. The record of performance in these cases is not an data and assumptions as crude as those which govern tarili making inspiring one. • The investigations ordered, the number of months which by the Ways and Means and Finance Committees. This difficulty is elapsed between the date of the order and the completion of the report inherent in the language of the statute creating the flexible tariff. It in those cases in which the commission bas been able to arrive at a is, nevertheless, surprising that it should have been possible to com­ final conclusion, and the total length of time between the beginning of plete a report upon wheat in four months, while the pig-iron case the cases and the date of final presidential action are shown in detail required 46 months and the plate-glass case 65 months. It may be that in a table which has been compiled from the commission's annual re­ Congress has been too niggardly in its appropriations for the Tariff Com­ ports and supplementary il!formation obtained from the commission, mission and that $750,000 a year is not enough to meet the annual bringing the table dow~ to the end of the last fiscal year. I ask unani­ cost of the flexible provision. Its proponents do not seem to have sought mous consent to have· that table incorporated in my remarks at tbil for more, however. The greater difficulties appear to have been in the point. statute, in the commission's relations with the President, and in the The PRESIDfNG 0F1l'ICER (Mr. GOLDSBOROUGH in the chair). Without remarkably dilatory methods used by some members of the commission, objection, it is so ordered. to which the Senate committee's attention was called by the testimony of Commissioners Costigan, Lewis, Culbertson, and Dennis. The table is as follows : DELAY IN OTHER CASES Investigations ordered DURING 1923 There was, for instance, the butter case, which Com~sioner Dennis believed could have been sent to the President in the fall ot 1924. It Months got to the White House in February, 1926. By that time the data upon pend­ Date report President's Total which it was based had largely become antiquated ; and the principal Date ordered Commodity ing in transmitted proclamation time competing country, upon which the comparisons bad been based, . was com- to President or statement (months) mission no longer Denmark but Canada. You talk about week-to-week and month-to-month adjustments of the tariff! Here was an important case which was so long in the bands of 1923 the commission that the data concerning the principal competing coun­ Mar. 27 Artificial flowers, fruit, ------Apparently suspended dur------etc. · mg 1924. try bad become obsolete and the principal competing country WiiS no Zl Barium dioxide ______27 Casein ______13 May 14,1924 May 19, 1924 . 13 longer Denmark but Canada. . 35 Mar. 4, 1926 Pending _____ ------Commissioner Costigan justly remarked that the most remarkable 27 Cotton gloves and warp- 27 J nne 12, 1925 Oct. 3, 1925 30 knit fabric. feature of the butter case "was its inexplicable delay." Its manage­ 27 Cotton hosiery ______45 Dec. 22, 1926 Pending _____ ------ment bad been so peculiar that Commissioner Dennis felt that it had Zl Diethylbarbituric acid 19 Nov. 6, 1924 Nov. 14, 1924 20 been "used as a sort of stage property, to be brought out as oc~sion (barbital). 27 Logwood extract ______------Report in preparation since ------may demand for sidetracking· other matters which also ought to have 1924. been expedited." , • . 27 Mirror plates ______------Investigation still in progress. ------Dilatory methods held up the taximeter case for 30 months, until 27 Oxalic acid._------21 Dec. 19, 1924 Dec. 29, 1924 21 Zl Paintbrush handles_____ 42 Oct. 2, 1926 Oct. 14, 1926 43 the Senator from Pennsylvania warned members of the C()mmission 27 Pig iron._------46 Feb. 2, 1927 Feb. ZJ, 19Zl 47 that further delay would lead to a senatorial investigation. Another 27 Potassium chlorate_____ 24 Apr. 3, 1925 Apr. 11, 1925 24 Zl Sodium nitrite______13 Senator had less success in expediting action in the vegetable-oils Apr. 26, 1924 May 6, 1924 13 27 Sugar______16 July 31, 1924 June 15, 1925 Zl case, which, after five and a half years, is still in the process of prepa­ 27 Swiss pattern files.------Apparently suspended dur------· ration. ing 1925. 27 Wall pockets______30 The log case excellently illustrates the disinclinatit;tn of those commis­ Oct. 1, 1925 I Oct. I, 11125 30 May 4 Brierwood pipes ...•..•. ------Report in preparation since ------sioners who followed Chairman Marvin's lead to touch a case which 1928. might force them to recommend a· reduction in duty. A preliminary 4 Cresylic acid __ ------51 June 15, 19271 July 20, 1927 52 Linseed oil______75 June 19, 1929 June 25, 1929 report bad been made in March, 1923, and the commission's advisory 4 75 - 4 PhenoL------~--~--- 54 Oct. 7, 19Zl Oct. -31, 19Zl 55 board recommended that an investigation be made. The formftl order 4 Print rollers.------30 Oct. 7, 1925 June 21,1925 39 was· issued in July, 1923. In October Chairman Marvin and his fol­ 4 Smokers' articles of ------Apparently suspended dur------synthetic phenolic ing 1924. lowers succeeded in passing a resolution discontinuing the case. Their resin. grounds were tb9.t the provision of the act of 1922 for a log duty in­ 4 Synthetic phenolic ------_____ do ______------cluded a clause stating that if certain Canadian eiport duties were resin. 4 Taximeters_------30 Oct. 1.1925 1 Dec. 12, 1925 32 removed logs should go on the free list. An opinion to this eliect was 5 Plate glass ______65 Aug. 22,1928 Jan. 17,1929 70 prepared by Commissioner Glassie. Commissioners Culbertson and July 2 Logs of fir, spruce, 60 Mar. 13, 1928 Pending ______Costigan were not inclined to yield easily and succeeded in getting the cedar, or western hemlock. President to ask the Attorney General for an opinion in the matter 27 Metallic magnesia ______------Apparently suspended dur------The Attorney General held that the grounds for the discontinuance of ing 1924. the case bad no validity at all. Aug. 11 Amino, acids and salts_ ------__ __ _do ______------11 Caustic magnesite and 19 Suspended on Mar. 12, 1925 •• After months of maneuvering the commission began its investigation magnesite brick. afresh in April, 1924. In September, 1924, field work had been com­ 11 Crude magnesite and 51 July 6,1927 1 Nov. 10,1927 55 pleted ; but not until August, 1925, was a public hearing held, and the caustic calcined. 11 Rare sugars ______------Apparently suspended dur­ case had advanced no further early in 1926. Commissioner Dennis at ing 1924. that time felt that the "indisposition to push through a case involving Oct. 25 Lace------Report in preparation since a lower duty " bad become so strong that it was useless to attempt to 1926. Nov. 14 Wheat and wheat prod­ 4 Mar. 4, 1924 I Mar. 7, 1924 get a reduction from the existing commission, in which Commissioners ucts. Marvin, Glassie, Brossard, and Baldwin then constituted a majority Commissioner Costigan stated that, although the President evidently DURING 1924 desired a fairly early report, there had been within the commission ----~------.---.------~---- "apparently continuous opposition to the final report." Consequently 1924 it did not reach the President until March 13, 1928, three years and a Feb. 8 Animal and vegetable ------Report in preparation since half after the public bea1·ing and almost exactly five years after the oils. 1927. Apr_ 5 Gold leaf ______16 July 22, 1925 Feb. 23, 1927 35 case began ; and then only after three of the commissioners--Marvin, May 29 Men's sewed straw hats. 20 Feb. 4,1926 Feb. 12, 1296 20 July 14 Butter----- ______--_---- 19 Feb. 25, 1926 6, 1926 20 Brossard, and Lowell-had contrived an ingenious theory, based largely Swiss cheese ______Mar. upon hypothetical but nonexistent towage charges, which, they stated, Aug. 9 32 Apr. 16, 1927 June 8, 1927 34 11 Halibut. __ ------14 Nov. 2, 1925 Pending______------justified an increase in duty. 4132. CQ.NGRESSIONAL ~ECO~P~ENltTEj OOTOBElB 2 ~

Investigations C»"dered--~~tinued Taritr Commission would continue to tunctlon in the Independent, DURING 1925 s~ienti1lc, and thorough ~annex which had characterized its existence • ' r .UP to that time. The record to which I have called the attention ot the Months Senate this afternoqn demonstrates that intrigue, political influence, and pen?- Date report President's Total b Date Commodity ing m transmitted proclamation time ca a1 have destroyed the Taritr Commission's usefulness. ordered com- to President or stateme1;1t (~onths) The history of the sugar and other cases shows that Presidents have mission been ready repeatedly to interfere with the commission, making im· partial and scientific tari1f adjustments impossible. Appointments eve1;1 1925 of statr members, who should have been chosen for their professional Mar. 19 China and earthenware. --~----- Investigation in progress .••.. ------,competence aione, have- been dictated by the political influence ot the. Apr. 23 Bent-wood chairs ______------Report in preparation since President or by others ~nown to stand high in the .councils of the ad· · 28 24 Rag rugs.------Z'/. 1J; is, 1927! Feb. 13,1928 M ministration. Why, Mr. President, they have not hesitated to break , May 19 Bobwhjte quaiL______4 Sept. 28, Ul25 Oct. . 3, 1925 4 down the morale of the scientific statr of this commission in order' that , July 24 Edible gelatin ______------Report in preparation ~-ce ------~hey might have in k.ey positions men ready to report to the commission 24 Glue ______------R!:i in preparation since ------' scientific " data "cooked up " to support the preconceived judgments ot 24 Granite ______1928. . commissioners and other interested parties ! 35 June 28,19281 Pending ______------24 MethanoL______14 oct. 5, 1926 Nov. ·ZT, 192il 16 Mr. WALSH of Massachusetts. Mr. President, I present and 24 Sodium silicofluoride ••• 37 Aug. 11, 1928 Aug. 31.1928 37 ask to have printed in the RECORD a communication from Wil- liam Green, president of the American Federation of Labor. DURING 1926 There being no objection, the letter was ordered to be printed 26 in the ~ECORD, as follows : 1~~ 8 Barium carbonate______·26 Mar. 17, 19281 Mar. 26, 1928 11 WASHINGTON, D. C., October 1, 19!9. 8 Flourspar______33 Oct. 9,1928 Oct. 17,1928 33 Bon, DAVID I. WALSH, Mar. 4 Cream of tartar______------Report in preparation since ------Ai enwer Umted States Senato, 1928. 4 Milk and cream______34 Jan. 10,19291 May 14,1929 88 Washington, D. 0. 4 Tartaric acid ______------Report in preparation since ------MY DEAB SENATOR WALsH: Experience has shown there are some in- May 26 Cottonseed ______------In~~tigation in progress _____ ------dustries employing labor that are in need of an increase in the taritrl 26 Peanuts.------31 Jan. 10,19291 Jan. 19,1929 32 schedules atrecting them in order to afford adequate protection to 31 ,A.ug. 4 Eggs and egg products... 30 Feb. 5,1929 Feb. 20,1929 American labor. For this reason the American Federation of Labor is 4 Flaxseed.------33 4 Onionsbeans .. ------______28 ~:i 1~ i: -~~~o~~-~~- : supporting the recommendation of a number of representatives of 4 Soy Oriental rugs______21 Investigation m progress____ organizations· affiliated with the American Federation of Labor that Oct. 28 Suspended on Aug. 1, 1928... certain ta.ri1'f schedules be increased. We do not ask that a general re- ___....!______!.,__.....!. ______---'~-- vision of industrial taritf schedules be made but we urge our friends, DURING 1927 in considering the taritr bill now pending in the United States Senat~, to discriminate in favor of those industrial schedules which ought to be 1927 Increased In the interest of American labor. Feb. 25 Maple sirup and sugar__ 14 Apr. 23,19281 Pending __ --- Mar. 22 Cherri~------·------8 Nov. 25,1927 Dec. 3,1927 8 We fully appreciate the purpose of Congress to supply adequate pro­ May 26 Imitation pearls ______------Report in preparation since tection.. to agriculture and to agricultural products. We are in hearty 1928. accord with this purpose and with this policy. We are asking that, 1n 26 Perfume and toilet bot------Investigation in progress------considering the needs ot the agricultural industry, just and construc­ 26 Potassiumtla permanga- 17 Nov. 3, 1928 INov. 16, 1928 18 tive consideration be given to those industrial schedules to which I nate. 26 Sodium phosphate ______------Preparation of report begun have referred where the !acts show that the workers are entitled to a - 1929. greater degree of protection. We Wish to make vital the w:iderJ.yi.Ii.g 26 Whiting______23 May 7,1929 j Pending _____ ------principles upon which it is asse~ed all protective taritr legislation Window 22 Mar. 26, 1929 May 14,1929 24 26 glass______primarily rests, namely, prote~ti.on to American labor. ' Iune 10 Fr~h tomatoes ______------Report in preparation since 1928. 1n this 'communication, I will not attempt to dwell in detail upon the 1 10 Canned tomatoes ______21 Feb. 28,19291 Pending __ ------administration features and the taritr schedules specifically recom- I 16 Oct. 23, 1928 ____ do •• ---- 24 Corn.------­ mended by representatives of labor. The duly accredited legislative Oct. 14 Tomato paste .• ----- 17 Feb. 28,1929 ____do __ ----- 1 representatives of the American Federation of Labor will call upon you and other Members of the United States Senate fol" the purpose DURING 1928 1 of advising you regarding these matters. Be assured that the A.meri- , can Federation

l J929 - CONGRESSIONAL RECORD-SENATE 4133 America, in order-to frame a reason-able, scientific, fair, and just to determine how 120,000,000 people shall trade. Of all the · tariff, which will be protective of American interests. There power ever bestowed in the history of time none exceeds the is no difference of opinion as to that; we all equally agree to the power given the President under this flexible provision of the provision for the creation of a fact-finding tariff commission. pending bill to bestow favors and monopolies and benefits on After the commission shall have performed it:s work, after it individuals, industries, and corporations according to his own shall have ascertained the facts, after it shall have made a will and desire. thorough and scientific investigation, we then part company. A I am opposed to that. When a Senator votes for the flexible portion of the Senators on the other side of the Chamber, con­ provision of the pending bill he votes-and he can not evade the stituting a majority, say that the facts thus thoroughly and issue-to give that power, that opportunity to the President scientifically found shall be sent to the President, and that his without stint and without limit except that the President can judgment,_his will, shall make those findmgs operative. not raise or lower a tariff duty in excess of 50 per cent of the Senators on this side of the Chamber say that, when ascer. rate fixed by the bill. Those who think that such a power as tained by this method, the facts as to the cost of production at belonged to the kings and potentates of the world in former home and abroad should be sent to the Congress, and that the times should be bestowed upon the President and that the congressional will and congressional action alone should make opportunity for favoritism should thus be afforded will vote for effective those findings of the Tariff Commission. There is the flexible provision of the tariff bill. That is what it means. where the difference between Senators on either side of the In addition to giving to the President this unlimited power of Chamber is specific and well defined . .However, it has been enriching favorites, as he may desire, it confers upon the Presi­ sought to impress the country with the idea that we are trying dent the right to impose taxes. I am opposed to that. I think to destroy the Tariff Commission by advocating a provision it is contrary to the Constitution. I do not care one iota for that will send the report to Congress for action and not to the the decision which was rendered upholding the flexible provision President. or the tariff. What did that decision hold? It held that if Con­ The issue now presented has been an issue from time im­ gress sees proper to abdicate its power under the Constitution memorial. It is, Shall the taxing power in a nation be placed and turn that power over to the President, and if in the opinion in the hands of one man or shall the people reserve that power of Congress the provisions of the law do not leave any discretion to themselves and exercise it as their will and their judgment in the President, then the provision is legal. I believe the deci­ may dictate? That is a conflict that has existed in the world sion is wrong. From time immemorial it has been held that since man first became civilized. It is fundamental; it is far­ legislative power can not be taken away from the Parliament reaching; it can not be-shirked. That is the issue here to-day, or the Congress when any discretion is left in the exercise of the and no subterfuge, no sophistry can avoid that one specific power on the part of the Executive. That is a fundamental issue. . prinCiple. The decision was based on a subterfuge that the Mr. Presi-dent, I am opposed to sending the information ob­ flexible provision left no discretion in the President because he tained by the Tariff Commission to the President; I favor send­ was bound by the conditions fixed in the law, but anyone may ing it to Congress; and I shall give my reasons for my position. read the provision and see that it is not specific. It gives the First, I am opposed on historical grounds, by tradition, and President the discreti-on to raise tariff duties to the extent of 50 because of what history and its proven truths tell mankind, per cent of the rates provided in the bill. We should vote ac­ to conferring such power on the President. How was America cording to our idea of the Constitution, regardless of any deci­ settled? What were the conditions under which this Nation sion of the Supreme Court. was founded? The world was dominated by executives and · The founders of the Government, fearful of the taxing power, despots. The Cortes of Spain had been abolished when .Anierica provided that the people could not be taxed except by Congress was settled, and ·the will of the King of Spain was the law and that all tax measures must originate in the House of Rep­ of three-fifths of the world. The great States~(kneral of France resentatives. They were so concerned about the taxing powee had been abolished; it was not called together again until it that they provided that the House of Representatives should be met on the eve of the French Revolution. James I had pro­ elected every two years, which is one of the shortest election rogued Parliament and his will was the law of England. The periods in-the history of constitutional government. Yet it is English Parliament did not a,ssemble for seven years, and dur­ proposed to give to the President the power to impose taxes, to ing that time James I was the ruler whose dominant will con­ increase tariff rates 50 per cent or decrease them 50 per cent. trolled England. With that situation in the world, America When he is given that power, what does it mean? It means that was settled by people who believed they had a right to con­ power thus given to him, in the absence of his consent, can only

trOl their own destiny, the right to control the imposition be withdrawn from him by a vote-two-thirds of .!! majority of = of their own taxes, the right to control their private affairs. the House and of the Senate. If this flexible provision shall be For all the world, Mr. President, liberty, popular rights, had embodied in the law and it is desired subsequently to repeal it but one refuge, and that was in the woods of America. Here or to change it, and the consent of the President can not be ob­ we have protected liberty, until now, when it is sought to mak~ tained, it can only be repealed or changed by a two-thirds vote. an abject surrender of the -popular rights of the people which That statement can not be denied. It means that we confer on our forefathers would not have thought possible in the great the President for all time the power to increase taxes unless two­ Republic which they founded. This is the issue and it can not thirds of Congress shall take that power away from him, for it ! be evaded. · · would take two-thirds to override his veto. So it appears that , What does it mean when the President is given the power to when Senators vote for the flexible provision they vote to de­ impose customs duties or tariff taxes on 120,000,000 people? prive a majority of Congress of the right to handle this matter; First, that taxes are imposed on the American people by the they vote to leave it entirely to the President to continue to Executive, and, second, that there is bestowed on the Executive exercise this puwer unless he consents to the withdrawal of the without limit and without stint the power practically of granting power or unless two-thirds of the House and the Senate with­ monopolies and conferring favors upon anyone according to his draw it from him. I say that that strikes at the fundamental , own will. · principle of majority government and is ruinous to our insti- 1 What was the great curse of momirchy? It was the power tutions. on the part of the king to grant monopolies to a few to trade Mr. President, under the power granted to the President by in England or in France or in Spain, as the case might be. One the flexible provision, how is it to be exercised? No publicity of the greatest curses of government until America was settled surrounds the proceedings of the Tariff Commission. The was the power given to monarchs to show favoritism, to bestow President is not required to act publicly. So the hearings and favors upon their particular friends and adherents, to make the proceedings in connection with the operation of the flexible men rich or poor as the will of the monarch might dictate. provision are of a star-chamber character. The President can In England privileges were given to favorites which resulted in hear a case openly, or he can hear it secretly. Six members of monopolies in the woolen trade, the sugar trade, the cotton the commission and one other man, the President, without industry, and similar favors were bestowed in France and publicity, without the case being presented, can absolutely con­ Spain. Court favorites were made rich by the monarchs who trol the industries, the enterprise, the foreign trade and com­ had it in their power to bestow such favors. That was one of merce, and the industrial growth and development of 120,000,000 the abuses denounced in our Declaration of Independence; it people, secretly and by means of star-chamber proceedings. was one of the main grievances which resulted in the wresting One of the great- fights made in England against Charles I of the Magna Charta from King .John, for the King could bestow and f_ames I was that the rights of England were bartered and favors to the enrichment of his favorites. sold in star-chamber proceedings, secretly, without publicity, Mr. President, what does the flexible provision propose? It and without knowledge on the part of the people. Yet it ls proposes to give the President power to create monopolies in proposed to place our industries, the taxing power, and our America, if he shall so desire, and to create them for the benefit entire prosperity in such a position that we can not compel of favorite interests ; it proposes to give the President the power publicity, but star chamber and secret proceedings may deter- CONGRESSIONAL RECORD-SENATE OcTOBER 2 mine their fate. In Congress, it must be done tmblicly. Tbe riches, wealth. monopoly to bis favorites oy the flexible provi­ votes are public; the debate is public; there is a public record; sion of a tariff bill. and the .American people know from their representatives who Mr. President, we can not shirk the issue. It can not be has been true and who has failed. . shirked. Right here to-day, when the roll is called, Senators Who is willing to have the interests of his State controlled, will answer whether they are for popular government, whether determined, and decided by the star-chamber proceedings of a they are for the rights of the people, whether they are for con­ commission, and a President who is not compelled to have stitutional government, whether they intend to let our Consti· publicity? tution continue as it was founded, with the power of taxation It is said that this flexible provision is necessary to prevent by Congress and not by an Executive. a general tariff revision, and every time we want a change we I for one have been proud of the eloquent voices that have will have to have a prolonged, elaborate tariff debate. To been raised, the ability that has been displayed, in keeping answer that, an amendment was offered to the Simmons amend­ America true to· her traditions, in keeping her true to her insti-" ment by the Senator from Nebraska [Mr. NoRRis], which pro­ tutions a_s the leader and the champion the world over of popu~ vides what? That Congress, the House of Representatives and lar rights and the Uberties of the people, and the right of the the Senate, can only consider and vote upon the items sent in people to control their own destiny and make their will law, and the report with the commission's recommendations. That is not turning it over to the Executive. exactly what the President would have to do. He would pass Mr. WALSH of Montana. Mr. President, on Friday night last on the item. It is sent to him precisely as it is sent to us. He the senior Senator from Arkansas [Mr. RoBINSON] delivered an has to accept that item and recommend it; and if it comes to interesting address over the radio upon the general subject Congress we have to do the same thing, and can not change the which is now under consideration by the Senate. I ask unani­ rate except so far as that item is concerned. That gets rid mous consent that it be published in the RECoRD. of all the complaint that it means, general tariff debate and There being no objection, the matter referred to was ordered general tariff revision. Consequently, that objection disappears. to be printed in the RECORD, as follows : The next argument advanced is the celerity with which the ADDRESS OJ' HON. JOSEPH T. ROBINSON, MINORITY LEADER IN THill UNI'l·ED tariff can be changed under the flexible provision. Now, every. STATES SJDNATE, 0VEB A COAST-'1'0-COAST HOOK-UP OJ' THE NATIONAL body knows that a President is overworked. The President will BROADCASTING Co., AT 9 P. M. ~IDAY, SEPTmMBER 27, 1929 hardly have time to read the reports. The President would simply send them to one of his Cabinet members and direct him General tariff revision involves so many details and issues of fact·, to pass on them. Everybody knows that be is overworked. that it becomes enveloped in confusion. The typical busy citizen is ~ Everybody knows that be could not read the evidence. Every­ unable to form a decision respecting its true ~lation to the public body knows that he could not give it consideration, in view of welfare. the great burdens that rest upon him in foreign affairs, in Nearly every political issue has grown out of temporary conditions. financial affairs, and other numerous matters. Consequently, it Consequently many have dwindled or disappeared when the conditions simply means that the matter must be referred by the President whkh created them have changed. to a person that we do not know and possibly never heard of. PERSISTlliNCil OJ' TARlli'B' PROBLEM It is all folly to talk about the President having an oppor­ Tbe tariff problem, however, is persistent. It has existed since the tunity to investigate the matter, an opportunity to reach a early days of the Republic. At times discussion of the subject has conclusion about it. It is an absolute impossibility; and those abated : nevertheless 1t has repeatedly recuned, and it now ts the sole who present that view know that it is impossible. cause for the prolongation of the Congress in extraOt'dinary session. Now, the question is, Can Congress pass upon this item, and The- tariff problem is impossible of complete and · final solution. either increase or decrease the duty upon it as recommended by Changes in international relations and in domestic conditions render the Tariff Commission, or is it better for the President to do it? impracticable the enactment of a permanent tariff law. it We will have more celerity, we will have better judgment, THE TAlUFF IN POLITICS will be a better way to exercise it if Congress does it than if we leave it to the President. Import duties have been the football of politics since the time of Senators talk about the speed o! the procedure. Let us see Alexander Hamilton. Ideal methods of tarilf making would free the whether the Tariff Commission is better than the Congress in subject from interference by selfish intere.~ts, prejudice, and logrolling that respect. by lobbyists and legislators. An ideal system would give controlling It bas been conceded-it is not denied-that in seven years consideration to the general public welfare rather than to the pretended the commission has passed on 37 items. A little more than 5 necessities of industries, which in campaign times are declared pros­ a year has this wonderful commission been able to consider and perous enough but when tariff bills are to be made are menaced by reach a conclusion on-a little ovet 5 a year! There are be­ alleged bankruptcy and ruin. tween four and five thousand items in this bill. I have made As tariff bills are now prepared the primary motive is to give as an estimate; and I find that at that rate, in order to make a nearly as possible to everyone what he demands. Since the masses, the report and have a bill ready for this session of the Senate to consumers, seldom appear before committees of the Congress, their rights act on, the Tariff Commission would have been compelled to are often disregarded or forgotten. In the scramble for favors incident meet at the time William the Conqueror went to England in to the revision of rates the mllllons who do not seek advantages over the tenth century and work night and day from that time to their fellows are often unfairly burdened to assure undeserved profits this. That would have been necessary in order to have a tariff for those who obtain excessive protection. bill ready now for the action o:! Congress ! This is the speed Discussions of the tariff are usually dull and trite. Nevertheless no which these advocates of Executive power invite Congress to other economic question so vitally affects both domestic living conditions approve. and foreign rela tiona. What excuse can exist for the abdication by- Congress of Its LITTLE NE.8D JrOR T.ABIJI'Jl' REVISION power, its right of publicity, its right of taking care of the in­ Many circumstances support the conclusion that little necessity ex~ terests of the States, and surrendering it to the star-chamber ists for tariff revision. Rates generally .are quite high enough, and in proceedings of a President and of a commission? · some instances too high to meet even a reasonable protective standard. l\Ir. President, these are the views that animate me. I think The principal demand for changes comes from those who believe agri­ this is a fundamental question of popular rights and popular culture equally with other industries can be made the beneficiary of the liberty. If parliamentary government can not be sustained in protective policy. When the extraordinary session was called it was the United States, it is a failure; and yet we are asked prac­ intended primarily for the benefit of farm producers. Both the House tically to abolish parliamentary government, to do it in an un­ and Senate have departed from the policy of llrilited revision and the constitutional way, and to create in America by indirection bill 1n prospect will completely overhaul and cod.ify the tariff laws with powers of a President superior to Congress and superior to the respect to both rates and administration. people, and a power that we .can never withdraw :from him While it is not possible in this brief address to take note of all the without his consent except by having a two-thirds vote in the objectionable features, it may be helpful to summarize some of the House and the Senate. criticisms which proposed changes in the present law seem to justify. Mr. President, I think this is a serious question. This is the l'Hlil TARIFF COMMISSION time when we must make a stand for popular rights, for popular liberty, for the right of the people to govern themselves through The Taritr Commission was originally conceived in an e1fort to sub­ stitute sound economic principles for polltlcal influence in rate fixing. their parliaments, which is tbe very principle upon which the American Government and American institutions have been ThiJJ purpose has tailed, and the failure is due in part at least to the founded. adoption of the tlex:ible p:z:ovision in the Fordney-McCumber law of 1922. I am not for creating in .America a Mussollni. I am not for J'LBXIBLE PROVISION CONDEMNED creating in .America a despot. I am not for creating in America One of the most important constitutional functions of the Congress a President with IOOre eonstitntional powers than any -monarCh ls w levy duties, imposts, and excises. Prior to 1922 the legislative ever possessed, and then supplementing that with power to give department had been jea].~us of tbls prerogative. It had previously CONGRESSIONAL RECORD-SENA~E 4135 invoked the assistanee of experts and commissions in the performanee prominenee to the tnslstenee of manufacturers and -other producers for of its duties, but had never abdicated them by conferring rate-making law-made prosperity, and of forgetting to do justice to those who must powers on the President. pay the costs and bear the bu~derur of unfair prices sometimes made Section 315 of the tariff act of 1922 authorizes the President, after possible by high protection. investigation and finding by the Tariff Commission to raise or lower A tarifr has been imposed on sugar since 1789. Notwithstanding this duties 50 per cent ad valorem. The eonstitutionallty of the statute protection, both American beet and cane producers supplied only 18 per has been sustained by the Supreme Court of the United States tn the cent of the sugar consumed In the United States in 1928. Of the case of Hampton & Co. v. The United States (276 U. S. 394). The remainder, 50 per cent came from Cuba and 32 per cent from our island substance of that decision is that since Congress has defined the rule possessions. Every one admits that the tariff on sugar is usually effec­ for altering rates by the Executive, the flexible provision is not an tive. Approximately 75 per cent of the total consumption of sugar in invalid delegation of power by the legislative department. the United States is in the homes. The remainder is used by manufac­ The commission is authorized to investigate and find the di.!Ierence turers and dispensers of food products. It Is alleged by experts that in the domestic costs of production and costs ineurred by producers the present sugar duty cost our people about $289,000,000 last year. in the principal competing foreign countries. After such investigation The present rate on raw sugar from Cuba is 1.76 plus cents per pound, and finding, the President is at liberty to give effect to the finding iri equivalent to 1.88 plus per pound refined. The proposed increase to 2.4 whole or in part, or to ignore it. In this discretion, which is not only cents per pound raw sugar, equivalent to 2.56 cents on refined, will add conferred by law but in practice exercised by the President, there about $4 to the tax burden of every family in the United States and lingers still in the minds of many lawyers doubt as to the consti­ make the total sugar-tariff burden per family approximately $13 or $14, tutionality of the fiexible-tariJI act. less such amount as may be absorbed by the manufacturers. M:ore or For practical purposes the statut~ must be accepted as valid. How­ less scientific calculation discloses that the total annual cost of duty on ever, the Supreme Court decision referred to does not touch and can sugar, should the rates in the House bill be enacted, would aggregate not decide the question of policy involved in such a law. This issue $384,000,000. . can be determined only by the Congress. Many reasons may be urged It requires little intelligence to see that the $59,000,000 which the for the repeal of the flexible provision. Among them are the following : farmers who produce cane and beet sugar will derive under the proposed (1) It tends to break down the wholesome distinction between the duties, the number of farmers benefited being 3 per cent of the total executive and legislative departments. number of American farmers, can not compensate the 97 per cent of (2) The taxing power is so vital to the life of the Nation and to our farmers who will be compelled to pay $77,000,000, estimated as the the liberties of the people that it should be kept within the control of result of increased prices. The increase in the sugar tariff will thus those chosen by the people to make laws. impose a net loss to all farmers of $18,000,000 ·per year and a net loss (3) It bas not proved a satisfactory method for removing inequality of at least $100,000,000 on the general public. and injustice from our tariff system. Many believe that a direct bounty on sugar would be cheaper. (4) It is not desirable to convert the Tariff Commission into a mere These remarks relate to only a few of the high points involved in the tribunal for the trial of complaints made by manufacturers to the sugar tari.II. neglect of those general studies upon which the Congress depends for 'l'he only investigation of the subject made by the Tariff Commission information in the passage of tariff laws. l!nder the flexible provision resulted in a finding reported to the As originally conceived, the flexible tariff was designed, theoretically President that the pre ent tariff on sugar should be reduced. at least, to protect the consumer against rates that because of the Nevertheless it is proposed to ignore the investigation and report by post-war confusion in European currency exchange it was feared the Tariff Commission and to increase the sugar duty already found to might have been made too high. Instead of which, it has been used be too high. almost exclusively to raise the rates, and consequently the cost of living. The conclusion appears sound that farmers can not look to the tariff LABOR AND THE TARIFF for prosperity. The net result, whether the law as finally passed incor­ The claim that increased tariffs are required in the interest of porates the Senate committee amendments, will be increased prices organized labor is without foundation. which all farmers must pay for what they consume and do not produce, far in excess of the benefits to producers. There are about 4,000,000 trade-union laborers in the United States. Of this number 2,850,000 work in mining, quarry~, building trades, pub­ UNJ'UST RATES lic service, transportation, and other businesses not affected by the tariff. The bill increases the rates of duty on many articles in common use The total number of organized workers in trades affected by the tariff and threatens embargoes against the products of some of our plincipal is approximately 950,000 and of this number experts declare not more foreign customers. So that it will not only oppress domestic consumers than 100,000 would benefit by the increases proposed. Something like with unnecessarily high prices, but it will also hamper and diminish 2 per cent of the organized workers might gain. The great majority our foreign commerce. would lose. Present duties are ample in most cases for the require­ The Tariff Commission investigated the duty on butter from the ments of labor. standpoint of our foreign and domestic costs of production, and a rate THE TARIFF IS NOT AN EFFECTIVE MEASURE OF FARM RELIEF of 12 cents per pound was imposed by the President. In 1928 Denmark Tari.II revision was brought forward by th"8 President at this session purchased American goods valued at $47,000,000. We bought from the primarily as a measure of farm relief supplemental to legislation deal­ Danes $4,000,000 worth (principally butter), largely the products of ing directly with that problem. The d1!bate in th.e Senate on the corn, cottonseed cake, and other substances bought from our people. pending bill has made clear that duties designed to protect producers Now lt is proposed to embargo Danish butter by a duty of 14 cents of agricnltural products do not accomplish that end, save with respect per pound, which may mean the end of our commerce with Denmark. to a few and relatively unimportant commodities. Last yea.r Germany bought goods from the United States twice the value Where imports are negligible as for Instance in the cases of corn, of her goods sold in our markets_ This bill will impose prohibitive rates cotton, jute, barley, eggs, oats, rye, and wheat, only trivial if any as to many German articles and discourage trade with Germany. benefits to domestic producers can be expected from the higher duties In 1.928 we sold approximately $850,000,000 worth of goods in the which the pending bill imposes, because identical or similar competing United Kingdom and purchased there approximately $350,000,000 worth. foreign products do not come into the markets of the United States. Already every foreign country with which we have substantial commerce With respect to buckwheat, butter, milk, lard, bacon, pork, sheep, has expressed alarm at thP policy of our tariff revision. They threaten lamb, mutton, and high-protein wheat, only trivial advantages may be retaliation and embargos against the United States. anticipated from tariff duties however high, because the tariff is only Last week the Senate ratified a treaty intended to become effective partially effective as to these. Sugar and wool are declared by experts with European nations binding the signatories to the removal of restric­ to be among the products of common and general use with respect to tions and embargoes against commerce. The treaty implies more liberal which present tariil's are effective. arrangements instead ()f increased restrictions; reduced instead of raised barriers. No one suggests that foreign countries or foreign influences WOOL should control our domestic pol~des or decide what rates of duty Con­ The annual revenues from the imports of wool, woolen goods, and gress shall impose. Yet it seems foolish. while professing to favor less other materials average $69,000,000. It is estimated that the farmers restriction of commerce and while actually enjoying the benefits of for· are benefited $43,000,000 by these duties, which will be increased to eign markets, to embargo those goods which are produced in the United $47,000.000 by the proposed rates. States in only negligible quantities, and so make it impossible for our If any consideration is to be given to the interests ot the masses, foreign customers to purchase commodities grown or mamifactured in the proposed increase in tariffs relating to wool and woolen products the United States. must be condemned as economically unsound and oppressive. This will Are we prepared to advance the policy that embargo and not competi­ be brought home to you when you pay $8 more for your new overcoat tion shall be the controlling principle in our tariff policy? than the last one cost you. Wby should the duty on watches be increased, as this bill provides, BUOAR from 47.60 per cent to 70.01 per cent? Who sincerely believes tbat thP. The history of the contest over the tariff on sugar is illustrative of present duty of 98.77 per eent on pocketknives should be increased to the habit that has long prevailed among tariff makers of giving undue 147.32 per cent, as in the Senate bill? LX.XI-261 4136 CONGR.ESSIONAL l{ECORD-SENATE OCTOBER 2 Why is it necessary to continue the 1922 duty of 104.44 per cent on I regret that the Senator from Utah [Mr. SMoor] is not on clippers, shears, and scissors? the tloor, nor is the Senator from Pennsylvania [Mr. REED]; but Numerous illustrations may be cite'O of unjust raises contemplated by possibly they may deem my remarks concerning this provision the bill. Wool-wearing apparel from 56.44 per cent under the present of the Smoot amendment worthy of study. law is to be advanced by the Senate provisions to 70.13 per cent. It will be recalled that under both amendments now before Why should the duty on leather gloves, said to average now more the Senate the Tariff Commi&'3ion is directed to take into con­ than 50 per cent, be increased to approximately 65 per cent? sideration costs of transportation as entering into or as being The same inquiry applies to the proposal that the rate on monumental incidental to costs of production; and this paragraph defines granite be increased from 15 cents to 25 cents per cubic foot. costs of transportation as follows : Because of comparatively trivial importations from Czechoslovakia all shoes are to be taxed 20 per cent. The term "costs of transportation" means-(a) in the case of an Who is so ignorant or untruthful as to declare that the domestic price imported article, the cost of transporting such article from the areas of shoes is not already high enough from any fair standpoint? of substantial production in the principal competing country to the Other unreasonable and unjustified increases include: Cement taken principal port of importation of such article into the United States; from the free list and given $ cents per 100 pounds ; cheap felt bat and (b) in the case of a domestic article, the cost of transporting such bodies advanced from 56 to 76 per cent; cotton sewjng thread, cotton article from the areas of substantial production that can reasonably be cloth, cotton stockings, woolen blankets, toothbrushes, straw hats, expected to ship the article to the principal port of importation into brooms, brushes, and combs, all substantially increased. the United States of the like or similar competitive article. The greatest program for road construction ever conceived in any I address myself first, Mr. President, to the first half of the country is now being carried on in the United States. The price of definition relating to the costs of transportation of the imported cement enters into the cost of road constructwn. Importations are article, as follows: unimportant. Some of the producers already are making enormous (a) In the case of an imported article, the cost of transporting such profits. It would seem unjust and unnecessary to slow down road article from the areas of substantial production in the prineipal com­ building by a tariff on cement. peting country tu the principal port of importation of such article into No justification in economic policy can be ol'r'ered for the principal the United States. increases in the bill now before the Senate. If the general public in­ terest is fairly considered as well as the interests of the manufacturer That language is easily understandable. It is perfectly plain. and the producer, revision downward must prevail as to most of the I call attention to the fact that the subsequent paragraph is schedules and general revision upward should be no longer insisted upon. perfectly senseless, and does not mean anything. But before I The advocates of tarifl' revision argue that prosperity is inseparable pass subdivision (a), I remark that the cost of transportation from higher protection. They declare in one sentence that the industries " from the areas of substantial production in the principal com­ of the United States have never before enjoyed sueh prosperity as peting country to the principal port of importation of such blesses them now. In the next breath they assert that unless pro­ article into the United States" is a thing that is impossible of hibitive duties are imposed and the whole tariff system overhauled with determination, simply because in the case of most of these articles there are different areas of substantial production, the a view to increasing the protection it afl'ords, panic and ruin will result cost of transportation from which to the principal port of im­ to the enterprises so recently declared by them to be unusually prosper­ portation differs. ous. If prosperity results principally from the tariff and the country For instance, take the article of cutlery, imported into this is already prosperous, why "tinker" with the tarifl' at this time? If country from, among other countries, Sweden and Great Britain : agriculture is admittedly depressed and can be aided by additional and The cost of transportation differs from each of those countries. increased rates, why offset every possible benefit that may be derived Take the matter of silks, produced in and imported from the from changes in the agricultural schedules by unnecessary raises of the Orient as well as from France and Italy; the cost of trans­ rates pertaining to metals, wool, sugar, and steel? portation being different in each of these cases. For the purpose of this discussion it matters little whether one However, that is an infirmity that is found in practically a~cepts or rejects the Democratic platform of 1928 on the tarifl' ques­ every feature of the bill, even in determining difference in costs tion so long as he does not believe in the embargo of foreign goods of production. But definition (b): through rates intended to be prohibitive. Surely duties that will permit efl'ecttve competition, insure against monopoly, provide fair revenue, In the case of a domestic article, the cost of transportl.ng such article and distribute the benefits and burdens of the tariff equitably among all, . from the areas of substantial production that can reasonably bi ex­ give adequate compensation to labor, and deny the shield of law to pect~ to sh.ip the article to the principal port of importation into the extortion through monopoly will afford as much protection to the in­ United States of the like or similar competitive article. dustries of. the United States as fair-minded persons should insist upon, That sentence is entirely incomplete. It does not mean any­ unless they favor the abandonment of foreign commerce. The differ· thing at all. I suppose that the phrase" to the principal port of ence between a competitive tarll'r' and a prohibitive tariff is notable. importation " is intended to modify the verb " ship" ; but if Duties which exclude foreign competition and enable American pro­ so, it is equally senseless. It can not have any sense at all ducers through trusts and combinations to charge unfair or unreasonable unless th.e word " there " is inserted after the word " article " prices can not meet with approval from unselfish citizens -and students. in line 14, so that it shall read : Let me summarize. The flexible provision · should be repealed and In the case of a domestic· article, the tosf of- transporting such it the Tariff Commission reformed so that wlll be a scientific, tact-finding article from the· areas or" substa-ntial productio~ thai ean ~sonably agency- and ·an adjunct to the Congress ; the industrial schedules re­ be expected to ship the article there to the principal port of importa- vised downward instead of upward it they are to be dealt with now. tion- · The pretended protection afforded agriculture by numerous duties which can not be eft'ective should be eliminated in the Interest of honesty and And so forth. frankness in legislation. If the bill is to retain the rates and pro­ It weuld be better if the language were somewhat trans­ visions approved by the House or those recommended by the Senate posed, so that it would read: Finance Committee, the public interests will be safeguarded by its In the case of a domestic article, the cost of transporting such defeat. article to the principal port of importation, from the areas of substantial .You at-e interested ·in the taril'r'-whether you think so or not, for the production that can reasonably be e.xpected to ship the article into the pending bill, reduced to common terms, means that every family in the United States, of the llke or similar competitive article. United States will be taxed about·$40 a year, and the only way you Mr. REED. ·Mr. President, will the Senator permit an in­ can escape it is by cutting your seale of living that much. terruption? Let me thank the National Brcoadcastlng Co. for this opportunity of Mr. WALSH of Montana. Yes. addressing the public on a sub~ of general Interest and lmportanee. Mr. REED. . I do not think the Senator means to suggest it You, ladies and gentlemen of the radio audience, will read the de­ exactly in the language that he used. I think he misspoke him­ bates and take note of the action by the Congress on the various issues self, because the words " into the United States " undoubtedly in the tariff bill ; and you will know when the parliamentary battle qualify the noun "importation." now in progt-ess has ended- how faithfully your representatives have Mr. WALSH of Montana. I think so; but let me remark that kept the faith. if that is the case, then we read in th.is way: Mr. wALSH of Montana. Mr. President, very little attention In the case of a domestic article, the cost of transporting such article bas been given to th~ concluding paragraph of the amendment from the areas of substantial production- offered by the Senator from Utah [Mr. Slloor], which in lan­ And so forth. Of course 14 from" must have a correla.tlve. It guage is identical with the amendment proposed by the Senate must be "from "-*~to" ; and the " to" is lacking, if " to the Committee on Finance appearing at page 325 of the bill It is principal port of importation " modifies "ship." the definition of the expression "costs of transportation" ~s Mr. REED. I quite agree with the Senator; but I do not that expression is used in the bill. think those words are intended to modify the word "ship." I 1929----- CONGRESSIONAL RECORD-SEN ATE 4137 / think that the sentence ts not ham>ilY -phrased, but the statement Mr. REED. No, Mr. President: If, tiS a m11tter of fact, the " from the areas of substantial production that can reasonably demand for merchant iron in Philadelphia is supplied by fur­ be expected to ship the article" is intended to stand al{)-ne, and naces at Reading, and at Caldwell, N. J., and at other points the words " the principal port of importation " are intended t? near by in that immediate district, the Tariff Commission would define the cost of transport. take the average costs of transportation of all the iron that went Mr. WALSH of Montana. If the first part of the sentence b; there. ended with the words " ship the article," then it does not mean Mr. WALSH of Montana. If that rule were established, it shipped to the principal port of importation but means shipped would be entirely sensible, but when the Tariff Commission and anywhere from the area of substantial production. the President go to fix -a rate of duty on the importation of Mr. REED. That might be argued, and the language is sus­ pig iron, it applies to every .area, no matter where it goes; that ceptible of that 'interpretation, but I think that the.implication is the rate. The question is, What costs of transportation, and is that it is 1·easenably expected to ship to that port. from what domestic area to the principal port of importation, Mr. WALSH of Montana. My purpose was to indicate that shall be figured in the reckoning? If the rule of the statute as the language stands it is either entirely without sense or is were that they are to take the -average rate from the various so ambiguous as that perhaps two or three different-construc­ areas of substantial production to the principal port of importa­ tions could be put upon it. tion, you would then have a definite rule, but when you say Mr. REED. I agree it could be improved and made more that they are to take Into consideration the costs of transporta­ certain. tion from the area· of substantial production to the principal 1\Ir. WALSH of Montana. I have not heard anybody attempt port of importation, you .co-mpel them to take out some particular to justify the application of this rule to the duties devolving area of production, and take the costs of transportation from upon the Tariff Commission. It has been pointed out that that area to the port of importation. probably the significance to be given to it is that the costs of Mr. REED. No, Mr. President; I do nat think you do. At transportation inust be :figured from the areas of substantial least that is not the inte-rpretation they put upon it. The Sen­ production to the principal port o! importation, no matter where ator raises a most interesting question, and one of the greatest the domestic article may be used in this country. difficulty in tariff making. Not only do the Tariff Commission Reference has been made heretofore to the subject of lemons and the President but also the Congress, in fixing these tariff coming from California, the major part -of which might be con­ rates, -come right up against the realization of the fact that sumed entirely in the Mississippi Valley, or at least not east of you can not protect at e:ver-y port in the United States without the Mississippi Valley. Yet the cost of transportation would giving excessive protection at ·some ports. We always have to be 1L:,oured from California to the port of New York. strike the average. Mr. REED. Mr. President, will the Senator permit an inter­ Mr. WALSH of Montana. We ha.ve pointed out that fact as ruption? a reason why you can not make this operative in the language Mr. WALSH of ?!fontana. I yield. or after the manner indicated. Mr. REED. We put a duty of 2~ centS 'a pound on lemons Mr. REED. I do not agree with the Senator in that. To on the theory that the Italian lemon came principally to the illustrate what I meant: It is utterly impossible to p1·otect heavy port of New York, and that the Ca1ifornia lemon and the products of the North in such ports as Miami, for example, with­ Florida lemon were entitled to be protected at that port. out imposing duties th11t would be grossly excessive in the North Mr. WALSH of Montana. Notwithstanding that, the Cali­ and on the Pacific coast. It is a trouble that is inherent in the fornia lemon never reaches the port of New York. · business of making a tariff. What ·we have tried to do in the Mr. REED. I beg the Senator's pardon ; I think it does. definition the Senator criticizes is to make a reasonable applica­ Mr. WALSH of Montana. I am sure it does·; but the great tion by considering only those areas which might be expected bulk ,af it never does. reasonably to ship to the principal port of importation. It Mr. REED. I am not sure even of that. That part of the would have to be a matter of average, of course. country nearest New York is the greatest eonSum.er of lemons Mr. WALSH of Montana. If that is the idea, then clearly in the United States. · the sentence is incomplete. If you are to figure only from the Mr. WALSH of Montana. Reference has been made to pig areas of substantial production that would reasonably be ex· iron. Pig iron is produced at {}ary from ores mined in the pected to ship an article to the principal port of importation, State of Minnesota. It is consumed practically entirely west·of · then you have no correlative to your word "from." the Allegheny Mountains. Yet if we regard Gary as an area Mr. REED. I agr~ with the Senator that that is the con­ of substantial production we would :figure the cost of the trans­ struction whieh · ought to be put on the language, and I agree portation of pig iron from Gary, Ind., to New York, although that we can make it plainer in order to compel tbat construe­ none of it ever gets there. , tion. I think the Sen.ator has given us a very helpful sug­ Mr. REED. Oh, .no, Mr. President;. that is the explanation gestion. of the use of the words " reasonably be expected to ship." Mr. WALSH of Montana. Let me illustrate a little further. No one would reasonably expect the furnaces at Gary to ship '3. Utah, Montana, Idaho, and Colorado are areas of the produc­ pOund of pig iron to Philadelphia. The p1·incipal port of impor­ tion of a substantial amount of sugar. So is the State of Michi­ tation is Philadelphia, and the only furnaces that could reason­ gan. But the cost of transporting sugar from the Rocky Moun­ ably be expected to ship there are those east of the Allegheny tain region to the port of New York, the principal port of im­ Mountains. · , ' - portation of sugar, is, of eourse, very much higher than the cost Mr. WALSH of Montana. Again I point-out the difficulties. of transporting sugar from Michlgan to the port of importation, Pittsburgh is likewise an area of very substantial production of New York. Which costs of transportation will the Tariff Com- pig iron, and so is eastern Pennsylvania. The cost of trans­ ' mission, under· this rule, be obliged to adopt? Moreover, I portation from there to New York is substantially less, of course, might remark in that connection that except under the most than the cost of transportation from Gary, .Iild. Again, the extraordinary circumstances sugar produced in the Rocky Moun­ Tariff Commission wil1 be obliged to select a& between Gary, tain region never gets east ~f Chicago, and obviously it would Ind., and Pittsburgh, or eastern Pennsylvania, to New York. be unreasonable, in arriving at the costs of production, or even Mr. REED. I will not interrupt the Senator if h-e prefers differences in conditions of competition, to figure the cost of that I should not-- · transportation from the Rocky Mountain region to the port of Mr. WALSH of Montana. I yield New York. Mr. REED. I am very glad tbe Senator raised that question. Mr. REED. I think the Senator answered his own question I quite agree with the Senator that it would be unreasonable to when he said that the sugar would not reasonably be expected endeavor to protect the Pittsburgh pig iron at the port of Phila­ to be shipped from Montana to New York. Therefore those delphia. Nobody ever tried to do that. The commission actu­ transportation costs would be excluded from consideration. ally had that question before it, and in making their study of Mr. EDGE. Mr. President, will the Senator yield? pig-iron costs at Philadelphia, the principal port, they ignored Mr. WALSH .Qf Montana. I yield. both Pittsburgh and Gary, and all of the furnaces west (}f the M:r. EDGE. I think, likewise, supplementing the explanation Ailegheny Mounta,ins. It would be quite unreasonable for us made by the Sen-ator from Pe-nnsylvania, the interpretation or to ask that Pittsburgh should be protected in such a market as definition of costs of transportation is well handled by the gen­ that. eral paragraph pr-eceding, that all of these various costs of Mr. WALSH of Montana. It seems to me the Senator intro­ transportation and production which would enter in will be con­ duces an entirely unrelated question. I am pointing out that sidered, as far as the President and the Tariff Commi sion :find it there is a difference in the cost of transportation from various practicable to do so. · In other words, it would seem to me, areas of substantial production to the principal port of importa­ in considering the reasonableness of an application for an in­ tion, and there must be a selection as to one of these in order to creased rate or a reduced rate, we have simply introduced the arrive at a result. pos~ibmtr Df consid-eling the costs of transportation which here- 4138 CONGRESSIONAL RECORD-SENATE OCTOBER 2 tofore have not been a part of that study. There is nothing commission by any official of the Government or other person or persons : all-compelling in that paragraph. It simply provides another and if so, what were the means or methods so used. a venue or channel through which the Tariff Commission can " The committee shall promptly report Its proceedings, findings, and study. All the possibilities brought up by the Senator from recommendations to the Senate." Montana, I think, are entirely pertinent, but I would assume By subsequent resolution the Senate continued until the end of the that a tariff commission or the President, or, it Congress goes present Congress the authority of the committee, and made available into it, Congress would necessarily consider those costs of. trans­ for its use all funds remaining unexpended. portation in their actual application to some imported article, I EVIDENCE the duty on which was a matter of study by the Tariff Commis­ The evidence has been transcribed and printed temporarily in 10 sion. It is simply a general definition. parts and consists of 1,461 pages of printed matter. An index, which Mr. WALSH of Montana. I think the Senator from New Jer­ is believed to be adequate for a full examination of the record, was sey, if he would reflect caref11lly upon the matter, would not prepared at the request of the committee under the supervision of particularly emphasize that feature of the act, because if the Mr. E. P. Costigan, until lately a member of the United States Tariff President is entitled under the act to determine which rate is Commission:_ This index with the testimony is submitted to the Senate applicable or otherwise than applicable, in other words, if he is as a part of this report. permitted to select from the various costs of transportation the one he thinks is applicable, then he is vested, obviously, w.ith the BRI:U SUMMARY OF TARii'F COMMISSION HISTORY largest measure (}f discretion in arriving at the conclusion which It appears from an examination of the hearings before the select he reaches, and thus, by common consent the act is uncon­ committee that as early as 1865 a revenue commission functioned in stitutional. recommending changes in revenue laws and in advising modifications Mr. EDGE. Mr. President, I submit that if the Tarif'r Com­ of tariff laws. From 1866 to 1870 the Commissioner of Revenue, Ron. mission complete their study based upon these five or six dif­ David A. Wells, was authorized to report facts and suggest changes in ferent avenues or channels through which they make the study, the revenue laws. they submit the result to the President and the President acts. In 1882 a temporary Tariff Commission was created by Congress. I read the language: This commission consisted of nine commissioners, who held hearings at various places in the United States and submitted to the Congress In ascertaining the differences in conditions of competition between in 1882 recommendations for tarift' legislation. The commission expired domestic articles and like or similar competitive imported articles in and Congress took no immediate action, but it has been asserted that the· principal market of the United Sta~, the President shall take into the tariff act of 1883 was impressed with the work of the commission. consideration, in so far as he finds it practicable and applicable. From 1888 to 1891 studies relating to the cost of production were It has always been so, a.nd I can not imagine a President carri-ed on by the Department of Labor, particularly with reference makrng a proper and wise decision upon any other basis. to iron, lrteel, glass, textiles, coal, and coke. Mr. WALSH of Montana. I submit these observations now The tariff act of 1909 authorized the President to "employ such because I assume we shall vote, if we ever vote on the Smoot persons as might be required ,. to determine whether other (}()vern­ amendment at all, on the amendment as a whole, as it stands, menta were unduly discriminating against our commerce. and this I submit as a further reason why that amendment 'l'he board appointed by President Taft first consisted of three mem­ should not be; adopted. bers and later five. It collected and reported to Congress information l\Ir. ROBINSON of Arkansas. Mr. President, the Senate con­ on various schedules, and in 1912 ceased to function for lack of stituted a select committee to investigate the proceedings of the appropriatiQn. Tariff Commission with particular reference to the flexible In 1913 a division in the Bureau of Foreign and Domestic Commerce, provisions.. That committee was composed of the Senator from known as the cost of production division, was established and conducted Wisconsin, Mr. LA FOLLEITE, the former Senator from Maryland, studies on various commodities and schedu~s pertaining to the tariff. Mr. Bruce, the Senator from Pennsylvania, Mr. REID, the former In the meantime sentiment in favor of the creation of a permanent Senator from New York, Mr. Wadsworth, and myself. Senator tariff commission had been growing, and found expression in the plat­ Wadsworth did not join in the report for the reason that he had forms of the various political parties. retired from the Senate when the report was made. I ask to THIS TABIFll' COMMISSION have printed in the RECORD the report of that select committee, having especial reference to the subject matter under discussion By title 7 of the revenue act of 1916 the United States Tariff Com­ at this time. mission was created with power to investigate and report upon tariff The VICE PRESIDENT. Without objection, it is so ordered. relations between this and foreign countries. The commission was The report is as follows : also authorized to report on special subjects when requested by the President, the Ways and Means Committee of the House, the Finance [S. Rept. No. 1325, 70th Cong., 1st sess.] Committee of the Senate, or either branch of Congress. INVESTIGATION 01' THE TABIFJ!' COMMISSION For a full definition of the powers of the commission as defined in Mr. ROBINSON of Arkansas, from the Select Committee on Investiga­ the act of 1916, see pages 249 and 250. tion of the United States Tariff Commission, submitted the following For information respecting the personnel and changes in the early report (pursuant to S. Res. 162 of 69th Cong.) : tariff history, see pages 270 and 271 of the hearings. \ To the SENATII OF THIS UNITED STATES : I'LEXIBLE PROVISION OF 1922 The select committee of the Senate organized under Senate Resolution The origin of the flexible provision is stated in the testimony by 162, Sixty-ninth Congress, first session, respectfully submits its report, Mr. Page, a former member of the commission (p. 40 of the hearings), as follows: to have been in a conference at the White House during Mr. Harding's The Senate resolution creating this select committee and defining its administration. There bad been previous discussion of the subject by powers and duties is as follows: various Members of the Congress. When the conference occurred the "Resolved, That a special committee composed of five Senators, three tariff act had passed the House of Representatives and was in the of whom shall be members of the majority (and include one who Is a Senate; Mr. Page made the following among other statements: Progressive Republican), and two of whom shall be members of the " Chairman ROBINSON. What occurred at the conference at the White minority, said committee to be appointed by the Vice President, is hereby House to whicb you have referred? authorized and directed to investigate the manner in which section 315 "Mr. PAGE. There was a discussion of the expediency of eliminating ( th.e fiexible provision) of the tariff act of 1922 has been and is being from the act the proposal to base duties upon domestic rather than upon administered. The inquiry shall have a partieular reference to the foreign values. At least the press had been approximately una.nimous in regulations and procedure of the Tariff Commission; the powers exer­ opposing that provision. The difiicu.\ties of administration, the con­ cised and the functions performed by said commission, and to the insti­ fusion that would arise from the change, had been impressed upon the tution, investigation, hearing, and decision of cases arising under said members of the Finance Committee of the Senate, and they felt that if section. something could be substituted for it which would accomplish the pur­ " Said inquiry shall also comprehend the agents and processes em­ po e that Members of the House bad had in mind in adopting that pro­ ployed by the Tariff Commll:sion in proceedings to ascertain the differ­ vision, it would improve the act, and it would be desirable, both as an ence in eosts of productions in the United States and in competing economic measure and likewise for the political impression that it would countries, as well as the method of ascertaining which country consti­ make upon the country. tutes the principal competing country within the meaning of said tariff •• Senator LA FoLLETTE. May I ask who were present at the confer­ act of 1922. ence, it you remember? " The committee may inquire into any and all other facts, circum­ "Mr. PAGEl. I can not be certain of all those who were present. All stances, and proeeedings which it deems relevant in arriving at an of the gentlemen who were at that time members of the Tarilf Commis­ accurate conclusion touching the operation and administration of the sion were present. Senator SMOOT was present. 1\~r. Hoover was· pres­ tariff laws. The committee hall also investigate the appointment of ent. Whether there were others at the tiz!le I do not remember. members of said commis ion and report to the Senat~ whether any " Chairman ROBINSON. Was the President there? attempt has been made to influence the official action of members of said "Mr. PAGE. The President was there. 1929 CONGRESSIONAL . RECOR~SEN.ATE 4139 "Chairman RoBINSON. Were there any members of the Committee on The usefulness of the commission has been also diminished by the Ways and Means of the House of Representatives present'? appointment of one or more members lacking in knowledge and training " Mr. PAGE. There were none. With respect to tariff subjects. "Senator BRUCE. Who was President then? Without attempting in this report to analyze the various cases "Mr. PAGE. President Harding." brought before the commission under the flexible provision of the tarift This conference was held November 28, 1921. A draft was prepared law, it seems suffi.cient to point out the fact that the flexible provision at the suggestion of President Harding (pp. 258 and 259 of the has resulted in increases by the executive of important duties, and in no bearings). substantial reductions being made in important cases where the commis­ It seems from the testimony that tbe general expectation as to the sion found facts justifying lower duties. manner in which the flexible provision (sec. 315 of the act of 1922) The cases for investigation instituted by the United States Tari:1! would operate would be to result in reductions rather than increases. Commission for the purpose of section 315 (the flexible provision) of The present chairman of the Finance Committee, who was actively the act of 1922 with the findings regarded as warranted by members connected with the preparation of the flexible provision, said as appears of the commission and the action of the President thereon as o:f June at pages 11192 and 11193 of the CoNGRESSIONAL RECORD for August 10, 9, 1927, wh(m the hearings were concluded, are printed as Appendix 1922: A to this report. Up to March 19, 1928, comprising approximately " I think the Senator bas heard me make the statement before on the six years of operation of the act of 1922 increases have been made in floor of the Senate that if the President is given this power I think 19 cases, many of which are of relative importance, while only 5 there will be many, many more occasions when be will exercise it in decreased duties have been put into effect, all of them applying to com­ lowering rates than in increasing them; in fact, if the conditions become modities of unimportance, such as mill feed, live bobwhite quail, paint· normal, I expect the President of the United States to lower, I was brush handles, phenol, and cresyllc acid. going to say, the majority of rates." Important cases resulting in no final action prolonged for a period Objections were urged to the flexible provision on the ground that ranging from four to five years include sugar, cotton hosiery, linseed section 315 conferred on the President legislative powers and consti· oil, halibut, and canadian logs. tuted an abdication by Congress of its authority. Other grounds of The constitutionality of the flexible provision of the act o:f 1922 was opposition were presented sounding in questions of public policy (pp. assailed in both Houses of Congre.ss. It has, however, been decided 260 and 261 of the hearings). in court proceedings. In the case of J. W. Hampton, Jr., & Co., 1 petitioner, ~. The United States, decided by the Supreme Court of the ANALYSIS OB' SECTION 3U United States on the 9th of April: 1928, the court through Chief Jus­ It is believed that a fair analysis of section 315 appears in the hear­ tice Taft held that it constitutes a valid delegation of power on the part ings at page 264. of the Congress. The section provides that the President, after investigation showing The evidence shows that foreign manufaetnrers are reluctant, and in the need therefor, may increase or decrease rates of duty and change many instances refuse, to furnish to the commission the data essential the classification of articles so as to equalize the cost ot production in to the .successful and accurate operation of the formula, and even a the United States and the principal competing countries. commission ideally constituted would find it a difficult task in many If such cost can not be equalized in that way, the President may cases to administer the act in a manner satisfactory to the public. substitute as a basis of assessing ad valorem duties the selling price Commissioner Dennis attributed the unsatisfactory administration of of competitive articles in all the principal markets in place of the for­ the flexible provision largely to personnel and factional dUierences eign market value of the imported article. The President's power to among the members of the commission (p. 139 of the hearings), and Increase rates is limited to 50 per cent, and does not apply at all if the expressed the belief that the flexible provision should be retained. He American price is substituted. believed that as the commission was then constituted the administration The incorporation of the flexible provision, section 315 of the tari1f of the flexible provision was a failure (p. 140 of the hearings). He par­ act of 1922, produced an important effect on the proceedings of the ticularly complained as to the manner in which the lower duty cases Taritr Commission (p. 264 of the bearings). had been dealt with by the commission (p. i40 of the hearings). For a description by Mr. Dennis of the wrangle which took place in the OPERATION OF FLEXIBLE PROVISION commission as then constituted see pages 193, 194, 108, etc. Prolonged study has been devoted by the select committee to the Upon the whole record the select committee make the following rec­ manner in which the flexible provision has operated. ommendations for legislation. Members of the committee will probably Former Commissioner Page anticipated its failure and resigned from present bills to carry out the same. the commission in part because he did not believe the commission could RECOMMENDATIONS function to advantage under it (p. 39 of the hearings). The committee recommends : Doctor Taussig expressed in his testimony the opinion that the flexible (1) That the flexible provisions of the tariff act of 1922, particularly provisions imposed a certain strain upon the commission, provoked pres­ section 315, be repealed. sure upon it by interested parties, and invited the exertion of in1luence Among others the following reasons are given to support this recom­ to secure a dil!erent character of personnel on the commission from mendation: that which might have served in the absence of the flexible provision (a) Experience has not demonstrated the practical value of the pro.. (pp. 7 and 32 of the bearings). vision. The administration of it has absorbed almost the entire time ot Your committee believes that the evidence justifies the cenclnsion that the commission without corresponding benefits. the enactment of the flexible provision of the taritr worked a radical (b) It is impracticable for the President to devote the time and atten· change in the functions actually performed by the commission. Since tion essential to the proper performance of the duties imposed upon him the passage of the act of 1922 and up until the hearings were concluded by the flexible tariff law. The Chief Executtve is already overburdened the commission devoted its labors largely, not to say almost exclusively, with executive duties. to the consideration of cases under the flexible provision with no sub­ (c) Tarifi' making and revision under our Constitution are legislative stantial result of general importance to the public. duties, and to impose such responsibilities on the President as are carried Controversies of such acute character arose in the commission that in the flexible provision confuses legislative and executive responsibility. certain of its members became suspicions of the good faith of others (2) It is believed that the Tariti Commission should be made a con· and bitter disputes, somtimes personal, occurred, resulting about the gressional agency, and should recommend duties and report the same time this select committee was created in a partial breakdown and a direct to the two Houses of Congress. Various plans for organization threatened complete breakdown of the Tariti Commission. It is not the of the commission have been suggested. It should be accomplished in purpose of your select committee to review the details of these sharp such a manner as to relieve the President of acting on the commission's dil!erences within the commission, but it is apparent to the committee reports, and to restore tariff rate making to the legislative branch of that the commission as a body was not functioning in an impartial or the Government. quasi judicial manner as we believe it was the intention ·of Congress (3) If the United States Tariff Commission is to be continued, its that it should function. Some members who had come on the commis­ prestige can only be restored and maintained by safeguarding against sion had formerly been the agents of business interests or enterprises membership on the board of former representatives of special interests directly concerned in the administration of the taril! laws, and we or organizations concerned directly witp the work of the commission. believe that these failed in a proper appreciation of the true functions Membership on the commission should be made attractive by liberal com­ of their office. pensation and by expanding the powers of the body so that It may In the opinion of this select committee public confidence in the Tariff report at the beginning of each session of Congress information and Commission was impaired by the appointment of members in the habit recommendations. of appearing before congressional committees on behalf of propOsed ( 4) The findings and r~commendatlons of the commission when legislation, as for instance in the cases of Messrs. Marvin and Burgess, reported to Congress should be made public. and by the refusal of Mr. Glassie to recuse himself in the sugar case Respectfully submitted. when three fellow commissioners insisted that the interest of members Jos. T. ROBINSON. of his family in the subject matter of the investigation should be held WM. CABELL BRUCE. to disqualify him in that case. ROBERT M. LA FOLLETTE, Jr. 4140 CONGRESSIONAL RECORD-SENATE OCTOBER 2

M I ~ORrTY VlllWS Mr. WATSON. Mr. President, I do not want to act in the I can not agree with the foregoing recommendations. I agree, how­ absence of the Senator from Utah. ever, that the record of the Tariff Commission has been disappointing, Mr. SMOOT entered the Chamber. and that its action has been so slow that the purposes of the law o.f 1\fr. ROBINSON of Arkansas. The "Senator from Utah has 1922. have largely been frustrated. The reasons for this, in my judg· just entered the Chamber. May I say to him that I have asked ment, have been three : First, a continued wrangle among the members whether an agreement can be reached so we may vote on the of the commission upon almost every question coming up for decision, pending amendment at not later than 2 o'clock? I understand accompanied by great personal bitterness between some of the individuals the Senator who has the floor will not con&ume more than 30 involved. No commission, court, or legislature could function well minutes. under such conditions. Second, an honest disagreement within the com­ Mr. SMOOT. Mr. President, there is one other Senator not mission as to the necessity of seeking direct evidence of foreign costs of now in the Chamber who desires to speak for a short time. I manufacture from the books of the foreign manufacturers, instead of do not know how long he may wish to speak. I will find out relying upon the natural inference that their cost must be less than the and let the Senator from Arkansas know. average of t heir fact ory invoice prices. Together with this there has Mr. ROBINSON of Arkansas. Very well. existed a disagreement as to the inclusion of transportation costs as an Mr. GOFF. Mr. President, in the remarks I shall make upon itPm in the calculation of comparative costs of production. Third, the the amendment offered by the Senator from Utah [Mr. SMOOT] fear of criticism from fellow members and from the public has led the I shall touch upon the constitutionality and I trust concisely members o.f t he commission to aim at an e:rtreme accuracy in cost data, of not only the pending amendment but the general purpose and with the result that by the time the information has been assembled and purport of the provision. I shall also refer to several other dlge ted conditions have changed and the data have ceased to be correct. matters whijustices, the entiremembership of the United Edge Kean Sheppard States Supreme Court, were in error in deciding that the ' Fe s~· Kendrick Shortridge flexible provisions of the tariff act of 1922 were constitutional, The VICE PRESIDENT. Ninety Senators have answered to and that error is so apparent and unquestionable that a majority their names. .A quorum is present. of the justices will recognize the error and rever ·e themselves Mr. ROBINSON of Arkansas. Mr. President-- if the question is again presented to them for judicial determina­ The VICE PRESIDENT. Does the Senator from West Vir­ tion. That such a situation could exist is almost inconceivable. ginia yield to the Senator from Arkansas? I can not, Mr. President, indulging the most active possible l\Ir. GOFF. I yield. imagination, conceive of the great justices of that court coming l\1r. ROBINSON of Arkansas. Mr. President, I ask the atten­ just two years ago to the conclusion that the statute that was tion of the Senator from Iadiana [Mr. WATSON], the Senator enacted in 1922 was constitutional, that it wa within the from Utah [l\lr. SMOOT]-! thought he was in the Chamber, but powers of the Constitution, and the Congress acting thereunder­ apparently he has just stepped out-and the Senator from North without having considered, when they reasoned their way to Carolina [Mr. SIMMONS]. It has been suggested that since one that conclusion, all of the minor, irrelevant suppositions and or two Senators are ill, but have appeared under the impression inconsequential objections which .are now raised against the that a vote was soon to be taken, an arrangement ought to be constitutionality of the pending provision. effected for a vote. I wonder if unanimous consent can be given Let us, in passing, turn to an analogous sihiation. I know to proceed to vote on the pending amendment at not later than of no instance in which the Supreme Court, having first reached 2 o'clock this afternoon? I submit that request. a unanimous decision that an act of Congress wa~ unconstitu- - . 1929 CONGRESSIONAL RECORD-SENATE 4141 tiona}, has subsequently held the. same act within the power say that the provisions of the Smoot amendment are unconsti­ of Congress. Of course, the Supreme Court may have held tutional beyond all reasonable doubt when nine justices of the.· that an act was unconstitutional, and, in pointing out the reason Supreme Court, as reasonable men, have by unanimous vote why, may have held the substitute act constitutional, because held identical provisions not to be in conflict with the Consti­ that act removed the objections which the court found in the tution? first act when it passed upon it; but I know of only two in­ _Those who urge that the provisions of the Smoot amendment stances, the Legal Tender case (12 Wall. 457) and United will be held unconstitutional are in the position of asking the States v. Nice (241 U. S. 591), in which the court bas so re­ United States Supreme Court to do that which it has never versed itself when the original decision was by a divided court. done, namely, to declare unconstitutional an act of Congress But as to the proposition at hand, namely, the declaring un­ that it has previously declared constitutional. They are asking constitutional of an act of Congress that has previously been the court to ignore a fundamental precept of constitutional held to be within the power of Congress, I know of no instance construction and hold as unconstitutional beyond any reasonable in which the court has so reversed itse-lf whether the original doubt whatsoever an act of Congress that nine members of the decision was by a unanimous or by a divided court. court have found to be constitutional We have heard in this connection, Mr. President, such a I can not conce~ve of constitutional government resting upon vociferous appeal to the patriotic impulses of the Members of such a tenuous basis of fact and such a thin basis of law that this body, I should like to ask, in passing, Is patriotism superior the Supreme Court wlll reverse itself after a very careful and a to constitutional authority? Is patriotism present 1n the Senate most considerate and comprehensive investigation of all the of the United States on some occasions and absent on others? doctrines and principles involved in any such enactment. In 1922 when this very act, tn substance the same, was passed, I can not help feel that the argument of those who attack the and the Supreme Court held it constitutional, where was the Smoot amendment upon constitutional grounds is an argument patriotism of the Members of this distinguished body if their in fac~ directed to- the policy of continuing the flexible-tariff patriotism now exhibited shows that they were then in error? provisions rather than to the constitutionality of their enact­ In 1922, Mr. President, we were emerging from the greatest ment. It admits in e-ffect that these provisions will again be war of history. Men all over the civilized world were struggling found constitutional by the Supreme Court if a case is ag2.in and crawling and coming back to safety, and they were doing brought before that body. It is an argument that in effect says it in the great majority of cases only over bridges of patriotism the Supreme Court erred in holdi,ng the flexible-tariff provisions and love of home and country ; yet we are told That if we adopt constitutional; that we who have opposed the policy of the the pending provision, with the amendment of the Senator from flexible tariff; have relied on the Supreme Court in vain· and Utah [Mr. SMOOT], we are not patriotic, and especially if we that it is useless to expect the Supreme Court to recogn~ the enact it in the light of that brilliant Star of Bethlehem, the error of its former decision and now hold the flexible tariff un­ decision of the Supreme Court in Hampton -v. United States constitutional. To defeat the flexible tariff we must wipe it off (276 u. s. 394). the books by legislative action, instead of relying upon further I can not leave this aspect of the question, Mr. President, judicial action. without asking what should be the directb;tg and guiding prin­ Mr. President, before I proceed further, and in this connec­ ciple in a deliberative body such as the Senate if under serious tion let me inquire if tMre is any lawyer here present who has and solemn responslbllity it enacts a law that involves the ever giv-en such matters consideration, who if he were called Constitution of the United States in a matter which the Supreme upon to express his view and his opinion upon the law would Court of the United States has held to be constitutional? What read the provisin against our commerce attacked in the court&, it is met with the presumption not only on the part of foreign governments. Nor do they dispute that of regularity but of constitutionality, and the courts indulge the Congress may vest in the President the power to deny effect that presumption, showing that always every doubt is resolved to duties fixed by Congress, upon the ascertainment by him of in favor of the constitutionality of the act. the nonexistence of similar contingencies. What they do dis­ Mr. BORAH. Mr. President-- pute is that, although the President can properly be intrusted The PRESIDING OFFICER (Mr. GoLDSBOROUGH in the with the power to subject articles to tariff duties or to no tariff chair). Does the Senator from West Virginia yield to the duties upon certain contingencies, nevertheless he can not con­ Senator from Idaho? stitutionally be intrusted with the more minute power of fixing Mr. GOFF. I do. the particular duty to which an article may be subject upon the Mr. BORAH. My memory may not serve me faithfully, but existence of certain contingencies. To place an article on the is it not true that the Supreme Court reversed its position on free list, even though Congress has prescribed a d11ty, is all the legal-tender cases? right. To subject an article to a duty, even though Congress Mr. GOFF. I do not think that the Supreme Court reversed has placed it on the free list, is all right. These propositions itself on any constitutional provision, and Uu!t is what I am they admit, are within the now uncontroverted decision of th~ addressing myself to. Supreme Court in Field against Clark, decided in· 1892, long Mr. BORAH. That was a purely constitutional question. before the alleged lapse of the court in the Hampton case. Mr. GOFF. I do not think it was on the constitutional aspect Mr. President, I shall merely refer in passing to this decision, that reversal took place. That is not my recollection. My which is one of the landmarks of constitutional government as memory may not serve me any more accurately than does the it is involved in this controversy. memory of the Senator from Idaho serve him, but it is my very In this case, decided as I say in 1892, the question raised was best recollection that the Supreme Court did not reverse itself whether it was constitutional to confer upon the President, by in that case on the constitutional questions involved. an act of Congress, the right and the authority to place an An act of the Congress is not to be declared void unless the article on the free list even though Congress prescribed a duty violation of the Constitution is so manifest as to leave no room for that article, or whether it was constitutional to confer upon for reasonable doubt. How could the Supreme Cour.t possibly the President of the United States the power to take an article 4142 CONGRESSIONAL RECORD-SENATE 0CTOUER 2 from the dutiable list and put it on the free list even though The proposition involved in the proposal of Governor Smith Congress had so placed it ; and the Supreme Court of the United would have conferred legislative authority upon a commission States held, in that great decision, that it was constitutional and such as he suggested, a body with full power and full authority within the due and proper exercise of the powers of the to act. That would have violated every rule laid down by the Congress. Supreme Court; and President Hoover having the decision in Furthermore, as I recall the address and the remarks yester­ mind, said that he thought this power should be conferred upon day of the distinguished Senator from Pennsylvania [Mr. REED], the Congress, knowing full well that it had a perfect right to he demonstrated that these propositions are not in the least new. C?nfer. as it does in the Smoot amendment an authority or a They are sanctified by the legislative action of the early Con­ discretiOn as to its execution. gresses. But, on the other hand, to do less than transfer an arti­ Mr. President, we have been treated to remarks that we cle from the dutiable list to the free list or vice versa-namely, should stand up and fight for the patriotism of the American merely to subject an article to one rate of duty when Congress Government. I do not yield to any man my admiration for bas prescribed another rate of duty-that, they say, is all wrong, the principles and the doctrines of the Constitution of the even though the Congress lays down the principle by which the United States. I believe that pursuant to its eternal principles Executive is to proceed, the facts that are to be ascertained, we have established here not only the best government on the and the contingencies that are to exist. face of the earth but a government which is the only gov­ Mr. President, I listened to-day with great interest-an inter­ ernment in all history where mankind have been able to stand est that was tempered by amazement-when the distinguished upon their own feet and be what God Almighty intended them Senator from California [Mr. JoHNSON] read from a speech of to be. You can go back through the history of the past, you Pre ident Hoover, delivered, he said, in October, 1928. He did can take the men who contended and struggled and whose im­ not, as I recall, quote all of the applicable provisions of that mortal names and classic records rolled forth from the lips of speech; and while those provisions are not long I intend to the Senator from California, but those men were merely strug­ quote them at length. gling toward a condition and toward an objective which we have In his speech in Boston in 1928 President Hoover said : achieved and which we now enjoy. The Tariff Commission is a most valuable arm of the Government. I do not believe that it is meet, in the discussion of these It can be strengthened and made mo-re useful in several ways. :But great constitutional questions, to refer lightly to what our the American people will never consent to delegating authority over the Supreme Court has done, or to what our people think or have tariff to any commission, whether nonpartisan or bipartisan. Our done in peace and in war, in trial and tribulation, in success people have the right to express themselves at the ballot upon so vital and in failure. a question as this. Who are the people? One would have supposed, from what Then President Hoover continued : the Senator from California said this morning, that the people ' There is only one commission to which delegation of that authority are some huddled and downtrodden crowd wandering hither and thither, lost in the highways and the byways of a monop­ can be made. That is the great commission of their own choosing, the Congre s of the United States and the President. It is the only com­ olistic democracy. The people are the men and women who chose and elected this Senate. The people are the men and the mission which can be held responsible to the electorate. women who stand for the principles of the American Govern­ The Senator from California, in a challenging tone, said: ment. The people are the men and women who elected Herbert I have heard no justification of that speech. I have heard no reply Hoover President of the United States by the greatest majority or explanation of those remarks from this side, the Republican side of ever given a candidate for that exalted office. They accepted this Chamber. him, and they believed in what he preached. They stood for Mr. President, I do not know whether anyone has replied, but him, and they reinforced the doctrines for which he contended. I intend to reply by bringing before the Senate the facts which They adopted everything he said, because the majority which were involved in that speech and the reason why that speech he received indicated that he had the intelligent, the moral, the was made, and the very condition to which 'that speech was a upstanding, the religious men and women of this country behind responsive answer. · him ; and the people, Mr. President, who put President Hoover Governor Smith, the Democratic candidate for the Presidency, where he is to-day in office are the people who not only read on October 13, 1928, at Louisville, Ky., spoke in favor of a tariff their Bible and pray to their God, but they are the people who commi sion of fi"ve members with full power to act. Why, Mr. read the Constitution of the United States, and who know that President, Governor Smith was going to appoint a tariff com­ embodied and wrapped up in it is all the wisdom, all the mis ·ion with legislative power. Governor Smith was going to philosophy, all the morality of the 2,000 years that preceded its appoi'Ilt a tariff commission which, with full power to act, was adoption. to supersede the Congress of the United States. I regret that I have no misgivings as to where the people of the United the Senator from California is not in the Chamber, because ..I States stand upon this great issue now before _the Senate of should like him to !mow that on October 16, at Boston, Mass., the United States. President Hoover was replying to this very proposition, pl~n, Mr. WAGNER. Mr. President, will the Senator yield? promise, and program which was made and suggested by Gov­ Mr. GOFF. Certainly. ernor Smith in his speech at Louisville, Ky. Mr. WAGNER. If the Senator will permit so long an inter­ Mr. WAGNER. Mr. President-- ruption, I would like to read what Governor Smith said in The PRESIDING OFFICER. Does the Senator from West his Louisville speech. Virginia yield to the Senator from New York? Mr. GOFF. The Senator will read, l take it, just the portion Mr. GOFF. I yield. he thinks is applicable to this discussion? Mr. WAGNER. I think, if the Senator reads the entire Mr. WAGNER. It is only two sentences. speech he will come to a different conclusion, namely, that Mr. GOFF. Very well. what Governor Smith recommended was a scientific investiga­ Mr. WAGNER. I desire to indicate what Governor Smith's tion to aid Congress. If the entire speech is read the Senator proposal was as to this commission; that is, to make scientific will observe that that was his proposal. investigations as an aid to Congress, because I know that the Mr. GOFI1.... Mr. President, right in that connection, and as Senator does not intend to misrepresent what Governor Smith thoroughly elucidating and explaining not only the unconstitu­ advocated. The governor said: tionality of the commission suggested and proposed by Governor I eonsider the method of general tariff revision to be inherently on­ Smith but the proper constitutional answer made by President sound and I definitely pledge that the only change I will consider in the Hoover to these suggestions of Governor Smith, I shall read tariff will be specific revisions in specific schedules, each considered on the applicable language that controls and turns the corner in its own merits on the basis of investigation by au impartial tariff com­ & the great case of Hampton Co. against the United States, mission and a careful hearing before Congress of all concerned. decided at the October term of the United States Supreme Court in the year 1927. Mr. GOFF. Mr. President, I was speaking about the power Mr. Chief Justice Taft, after reviewing all of the questions and the authority of the Senate to confer the authority to exer­ involved, after taking into consideration the act of 1922 and cise a clear and a judicial discretion in the execution of this citing its provisions at length, after referring to the decisions law. of the Treasury Department and the Court of Customs Appeals, Mr. TYDINGS. Mr. President- quotes with approval the following language of an Ohio court : The VJ:CE PRESIDENT. Does the Senator from West Vir­ The true distinction, therefore, is between the delegation of power to ginia yield to the Senator from Maryland? IDtlke tbe law, which necessarily involves a discretion as to what it shall Mr. GOFF. I yield. be, and .conferring an authority or discretion as to its execution, to be Mr. TYDINGS. Would it not be possible for the Congress to exercised under and in pursuance of the law. The first can not be give to the President the power to raise or lower the size of done; to the !atter no valid objection can be made. the standing Army, within certain limits? 1929. CONGRESSIONAL RECORD-SEN.A.TE 4143 Mr. GOFF. I was coming to that question. I should say, and Congress avalling itself of the aid of the Executive in generally speaking, yes. ascertaining whether certain facts exist calling for the fixing Mr. TYDINGS. Would it not be possible tor the Congress to and imposition of a duty by the Executive. In each instance give to the President the power to decrease or increase the size the controlling constitutional question is whether the action of of the Navy, within certain limits? the Executive is to take place only upon the existence of cer­ Mr. GOFF. Yes. tain ascertainable facts and in accordance with a prescribed Mr. TYDINGS. Would it not be possible for the Congress to principle. If so, then the Congress has fulfilled and exercised give to the President the power to increase or decrease the its complete legislative duty. The Executive is not then vested income-tax rates, within certain limits? with legislative discreti{)n. He is merely the agent of the Con­ Mr. GOFF. Unless the language were most carefully con­ gress. Given the existence of certain facts, the tariff duty that sidered and limited it might involve a nondelegated power. may be applied by the President is fixed and determinable. It is Mr. TYDINGS. If we did give the President all of these fixed by act of Congress, not in figures, but by the application powers, what earthly use would there be for the meeting of Con­ of an intelligible principle. gress to consider anything, if the President had the legislative It the Executive ascertains the facts incorrectly, if he applies power to act upon it? the wrong duty to any set of facts, it is true that the intent of Mr. GOFF. For this reason, that without the Congress meet­ Congress is not being carried out But this is the ·risk that the ing, the President could not have t~ose powers, or have them Congress nma in most legislation, and that is the reason, Mr. replenished when they were consumed. President, why we have the Supreme Court of the United Mr. President, now I desire to address myself to some of the States to determine whether or not an act of the Congress of suggestions made by the Senator from Maryland. It has been the United States has been properly or improperly applied, in­ held universally, beginning with the Supreme Court of the terpreted, and understood by the judicial branch of the Gov­ United States, that Congress can authorize an administrative ernment, which has the first and the original jurisdiction to officer or body to make rules and regulations relating to the apply this principle and this doctrine. Congress must usually administration or the 'enforcement of a law. rely upon the executive branch of the Government for the appli­ Congress may confer on the President authority to make rules cation of each statutory requirement to the proper set of facts, and regulations for the government of the militia, and for calling whether the requirement is a tariff duty, income tax, railroad the militia into active service. rate, grazing fee, or whether it is a statutory requirement en­ Congress can confer upon the Secretary of the Treasury power tirely unrelated to monetary impositions. to establish standards to which imported articles of a certain There is no constitutional requirement that demands that the character must conform. Congress, in order to minimize the possibility of error by the Congress can confer upon the Secretary of Agriculture author­ Executive in discharging his constitutional duty of faithfully ity to establish regulations to prevent the spread of contagious executing the law, must state its statutory requirements in detail diseases of animals. covering separately every conceivable contingency. It is enough Congress can confer upon the Secretary of War the power to that the Congress lay down a principle capable of application to prescribe rules and regulations for the use, administration, and such contingencies as they arise. There is nothing peculiar navigation of canals operated by the Government, and to deter­ about the taxing power that demands that it shall be exercised mine whether bridges across navigable streams constitute unrea­ only by the use of figures. Whenever Congress in its discretion sonable obstruction to navigation. deems it desirable, it may legislate as to principles and not Congress can confer on harbor supervisors the power to fix details. It may lay down the principle to govern the Executive prescribed limits within which refuse and other material may and leave to him the making of the necessary computations for be dumped. applying that principle. Congress can confer upon the proper executive officers, such The constitutional question relating to the flexible tariff upon as the Secretary of the Interior and the Secretary of Agricul­ which the greatest doubt centered during the course of the liti­ ture, authority to prescribe rules governing the preservation of gation over the flexible provisions of the 1922 act was not the national forests, and may require such officers to enforce whether the Congress could make use of the Executive in carry- · their opinions and rulings by proceedings in the courts. ing out the principle laid down by it. Neither was it the ques­ Congress can confer the power to make regulations for carry­ tion whether the particular increases or decreases in duties must ing a statute into effect which must be exercised within those be set forth in figures by the Congress rather than left to com­ powers. Congress must, however, always conform to the rule putation in particular in....~ances by the Executive. The main laid down by the Supreme Court in the case of Hampton against question upon which doubt was expressed was whether or not the United States, that the conferring of any such delegated the principle laid down by the Congress to guide the Executive power must not involve or permit legislative action, and if it in his computations was sufficiently intelligible, sufficiently defi­ does not involve legislative action, but merely a reasonable and nite to afford a real guide. Was the principle stated so vaguely impartial discretion in the execution of the law, then it can be as to make the administration of the flexible-tariff provisions properly delegated and conferred upon an executive officer. a mere matter of discretion and the enactment of those provi­ Mr. TYDINGS. Mr. President, will the Senator yield further? sions an investiture of the Executive with purely legislative Mr. GOFF. I yie«L power? Or, on the other hand, was the principle stated· with Mr. 'rYDINGS. As I understand the Senator, then, Congress sufficient definiteness to afford an intelligible guide, so that the can pass on to the President, within certain limits, the right Executive would exercise no substantial discretion but would to determine every question of legislation granted to Congress by merely ascertain the existence {)f a certain prescribed set of the Constitution. All it bas to do is to fix the limits. Is that facts, and having ascertained these facts compute · the duties correct? applicable with respect thereto by processes, in the main, min­ Mr. GOFF. No, Mr. President; not correct in the least. isterial in character? The Supreme Court said that the latter Mr. TYDINGS. Then, I would like to ask the Senator to was the situation, that the principle laid down was sufficiently show wherein it is not conect? definite and intelligible to prevent the authority granted from Mr. GOFF. I will show the Senator wherein it 1s not being a delegation of pure legislative power. correct. The flexible-tariff provisions state the principles upon the The Congress of the United States can confer upon the basis of which duties are to be adjusted as being the equaliza­ judiciary the power to construe and to execute statutes. When tion of differences in costs of production. The President is the Congress of the United States assumes to go further and directed to investigate and ascertain the existence of such dif­ convert the judicial branch of the Government into the legis­ ferences. In ascertaining the existence of such differences the lative branch, then the Congress of the United States in effect President is directed to take into consideration several factors. says to every judge or to every officer whose authority and Among these are differences in conditions of production, includ­ who e power it is to construe and enforce the law, "You do ing wages and costs of material, differences in wholesale selling not belong in the courts, where the laws are enforced and in­ prices, discriminatory advantages granted by foreign govern­ terpreted, but you belong in the l~gislature, where the laws ments or by foreign persons, and other advantages or disadvan­ are made." If the Congress of the United States attempts to tages in competition. The Attorney

.• · 1929 CONGRESSIONAL RECORD-SENATE 4145 It is true the House and the Senate Finance Committee-and than 500,000,000. The American northwestern farmer was help­ the committee improved the House bill in the agricultural items, less in world markets against such a ftare-up of competitive iu the main-gave agriculture inCMased tariff protection. But production across the border. This competition is all the more they raised so many other items that it will cost agriculture serious because of the unusually high quality of Canadian more than it will receive. wheat in ordinary years. I say again that this bill does not place agriculture on a tariff It sells at a p1·emium in all world markets. Fortunately, in equality with manufacturing and industry. In its present form 1923, with the crop beginning to mount to nearly 500,000,000 it will never meet with the approval of the Middle West. bushels, the flexible provisions were available for the use of the But I arose to-day, Mr. President, to make a few brief re­ President. Commission experts were sent in December, 1923, to marks concerning the ftexible-tariff principle in tariff legisla­ the field. In February the cost and other data were assembled, tion. and a public hearing held after allowing for the usual 30-day I am not advocating that the President, on recommendation of public notice of the hearings. By. the 1st of March the report the Tariff Commission, be allowed to make tariff rates. I do was completed, and on March 7, 1924., the President proclaimed believe, however, that on findings of fact and recommendations an increase in the duty on wheat from 30 to 42 cents a busheL submitted by a nonpartisan tariff commission, after thorough If there ever was an agricultural emergency promptly met, this investigations, the President may safely and wisely be dele­ is an illustration of such action. No one will claim that the gated the power to adjust rates to meet conditions as they arise. American wheat grower is benefited to the extent of 42 cents This power is limited to approval or veto of the recommenda­ a bushel, but he has been helped by this tariff. tions of the Tariff Commission. Onions is another subject upon which the flexible provisions The legislative branch of our Government will retain its con­ have benefited American agriculture. Prior to 1922, when the trol of tariff making. Under the present law, and under the duty on onions was 20 cents per bushel under the tariff act of amendments offered by the Senate Finance Committee, as I un­ 1913 and 40 cents per bushel under the emergency tariff act, im­ derstand them, the President is limited to a change of 50 per ports were small, averaging about a million and a half bushels cent, up or down, as world economic conditions warrant, in ad­ annually. Beginning with 1923, and after the duty had been justment of the basic tariff rates fixed by Congress. increased to 1 cent per pound, or 57 cents per bushel, imports An inflexible tariff system, set and fixed immovably, is an began to increase, and by 1925 they had reached a total of more ,anachronism in these days of marvelous development in manu­ than 136,000,000 pounds. About half of this amount was im­ facturing and distributing technique. The management of a ports of the sweet Spanish onions, which compete most directly corporation or any business must have some leeway in meeting with the domestic Spanish type now being produced in increas­ competitive conditions as they arise. The board of directors ing quantities in the Western States of Washington, Idaho, and retains its general control over the business; it outlines the Utah. These Spanish imports also directly affect the market of policies; it does not, in an intelligent organization, attempt to the winter onions of New York, Ohio, and Indiana. • restrict its management to the point of crippling it. On December 22, 1928, the President, under the flexible provi~ Mr. President, speaking as one who believes thoroughly in a sions, increased the duty on onions from 1 cent to 1% cents per protective tariff, and who believes that tariff benefits have not pound, the maximum permissible under the law. The duty be­ been fairly distributed, I admit that in the pending tariff re­ came effective January 22, 1929. Since that date the imports vision I am most interested in seeing a bill passed that will have continued at a slightly decreased rate as compared with tend to place agriculture on an economic equality with manu­ the same period in 1928. facturing and other industries, in so far as that can be accom­ Milk and cream have also been the subjects of action by the plished through a tariff act. It seems to me that was the idea President under the flexible provisions. Imports of fresh milk back of the calling of this special session; at least, that is the from Canada averaged 6,000,000 or 7,000,000 gallons annually, reason given for the special session. It is in line with the party and this quantity is highly concentrated in the competitive area platform pledges; it is in line with the President's proclamation of northern New York and New England, so that thus its effect calling us into special session, as I read it. upon prices in those areas is important. The imports of cream, Now let us examine briefly whether or not the present flexible averaging 4,000,000 or 5,000,000 gallons, and valued at $6,000,000 tariff provisions of the law have benefited or injured agriculture. or $7,000,000, are also highly concentrated in the northwestern As I read the records, through the flex:ible-ta.riiff provisions area. New York and Boston are the centers of consumption of farmers have been able to obtain additional protection on a these imports, and they have a decisive effect upon cream prices number of their commodities. in those cities. Effective June 13, 1929, the President increased The tariff rate on wheat was raised from 30 cents to 42 the duty upon milk under the flexible provisions from 2% cents cents a bushel; I am not claiming it is entirely, nor at all times per gallon to 3% cents per gallon, and the duty upon cream from even in a small way, effective. But during normal periods it 20 cents to 30 cents per gallon. has offered some protection to the wheat grower. Without The cases mentioned above of wheat, onions, milk, and cream going into details, I believe the investigations oow being made are but a few illustrations of the activities of the commission by the Federal Farm Board into the present amazing disparity and the President under the flexible provisions. These provi­ in wheat prices in the United States and Canada will disclose sions have proved to be quick and tangible, though limited forms that the reasons for that lie outside the pale of possible tariff of farm relief, and they can be invoked at any time when heavy protection. imports threaten the markets of the domestic producers. The tariff on flaxseed has been increased from 40 cents to 56 Mr. President, I am not under any delusions that the reten­ cents a bushel through the flexible provisiOI}S of. the 1922 tariff tion or the strengthening and extension of the flexible-tariff act; on flour, from 78 cents to $1.04 a bu$hel; on milk, from provisions will solve_the farm problem; I am not under any 2lh to 3%, cents per gallon; on pitted cherries, from 2 cents to delusions that increased tariff rates of themselves and by them­ 3 cents per pound ; on Swiss c}Jeese ( Emmethaler type), from 5 selves will solve the farm problem; but more adequate tariff cents per pound but not less than 25 per cent ad valorem to protection, unless it is accompanied by increases in the rates on 7¥..! cents a pound but not less than 3n~ per cent ad valorem; other commodities that the farmer buys, will benefit agriculture; on butter, from 8 to 12 cents per pound; on cream, from 20 The flexible tariff principle, honestly and intelligently applied, cents to 30 cents per gallon ; on peanuts, unshelled, from 3 to will benefit agriculture. I believe it would be a step backward 4¥..! cents per pound, shelled, from 4 cents to 6 cents per pound; to abolish the flexible tariff provisions. I have confidence in the on onions, from 1 cent to llh cents per "pound; on frozen eggs, President's sincerity and good business judgment. I have been from 6 cents to 7lh cents per pound. disappointed, it is true, in some of the actions of the Tariff Com­ Mr. President, I am informed that much of the time of the mission and the results obtained from its recommendations. commission has been spent in recent years upon agricultural But not all the acts of Congress have worked out as we had investigations under the flexible provisions. Many of these in­ ~hoped and intended they should. vestigations were in the nature of emergencies. One of the As stated before, I would not approve Congress turning over commission's very first investigations-that of wheat and wheat its legislative powers in making tariff rates to the Executive products-was an emergency undertaking. The domestic pro­ branch of the Government; but I am not fearful, in fact, I duction of high-grade hard spring wheat has run from 100,- strongly approve, of delegating the power to the Executive, under 000,000 to 150,000,000 bushels annually during the last decade. proper safeguards such as I believe are provided, to adjust the The States of Montana, the two Dakotas, and Minnesota form basic tariff rates to meet emergencies as they may arise in the center of production of this wheat. Just acr-oss the border world economic conditions. in Canada there has been going on recently a startling develop­ Mr. President, reasons for continuing the flexible provisions ment from the point of view of competition which the north­ in our tariff stru.ture are more compellfug to-day than ever western farmer must face. Some years ago 150,000,000 tO before. Local and world economic conditions are changing con­ 200,000,000 bushels was a large wheat crop for Canada. In stantly so far as individual commodities and their production 1921 the crop went to 300,000,000, in 1922 to 400,000,000, in and distribution costs are concerned. To protect agriculture and 1923 to 475,000,000, in 1927 to 440,000,000, and in 1928 more industry, and at the same time safeguard the consumers of the 4146 CONGRESS! ON AL RECORD-SEN ATE OCTOBER_ 2 United States, the power to raise or lower the tariff wall at the there is any semblance of agreement it is in emphatic belief in places where shifts in the economic pressure make it necessary, administrative flexibility. should be placed somewhere. These chan~es should be. based on I could cumber the RECORD with almost countless editorial accurate information and sound judgment, and at the same time quotations to sustain this observation, although many of them be made as rapidly as possible after the change becomes neces­ would first have to be deleted, under Senate rules, because of sary. The flexible-tariff principle, from past experience, can be the caustic compliments addressed to our wisdom or lack of it. used to attain this end. It seems to be the most practicable and But I am content to indicate their trend, saying again that equitable scheme so far devised, and it would be a serious mis­ this is pertinent only as an assessment of public opinion, which take, a collosal blunder, in my judgment, to abandon it. it is not the duty of statesmanship blindly to follow, but to Mr. President, I am utterly opposed to striking out of the which it is not the part of statesmanship to be wholly deaf. tariff laws the flexible-ta:ri.ff provisions. I intend to support After all, public opinion is not always wrong. the Senate Committee's compromise amendment to the existing It is asked of us in behalf of agriculture that we destroy the fiexible-tariff provisions of the act. I hope it may be adopted, existing theory of administrative flexibility. That suggests an and that the Senate conferees will stand firm for its provisions inspection of the typical press in the great Northwest in addi­ when the bill goes to conference. The principle is sound, and tion to the voice of farm organizations, which, like labor organi­ should be retained. zations, are earnest advocates of flexibility. Mr. VANDENBERG. Mr. President, I have no desire to con­ Here come two great newspapers in Minnesota ; and, mind tribute in any degree to delaying a vote upon the pending pro­ you, in at least one of these instances I am quoting a newspaper posal, but as the debate comes to a conclusion, there js one sig­ which has stood head and shoulders to the front in the con­ nificant phase of the question to which I wish, briefly, to advert stant and persistent demand that agriculture shall have justice a phase to which little or no attention has been paid from the in this session at the hands of Congress. affirmative standpoint, yet a phase which is vitally significant. I am now quoting the Minneapolis Tribune: In the climax of his very brilliant address, the distinguished The more one studies the question of the flexible provisions of the senior Senator from California [Mr. JoHNSON] referred em­ tari:tf bill the more inescapable is the conclusion that the President is phHtically to an editorial pronouncement from the New Yor.k the court ot last resMt for the agricultural Northwest. • • . • World upon the question of flexibility. It occurs to me that 1t would be distinctly useful and illuminating to pursue a littl.e Then, speaking of the existing flexible powers : further the type of inquiry suggested by the Senator from Cali­ The campaign to take away this power which the President now has fornia when he presents as his clinchin~ and conclusive exhibit can not logically have the support of the Senators and Representatives a typical statement from the American press. from the Northwest. The flexible provision of the tariff is a highly Much has been said of what the people expect of us in re­ valuable insurance for the agricultural Northwest. It provides a court demption of our campaign pledges-in a campaign, by the way, of appeal for any failures on the part of Cong1·ess. The Northwest rep­ which it would be well to remember, gave Herbert Hoover the resentatives in Congress should insist on its retention. .. great~st vote of confidence ever accorded to a President of the This same thought is succinctly summarized by the St. Cloud United States. Much has been said about the public reaction (Minn.) Times, which says: to the pendiug tariff bill, and the public feeling frequently has been judged upon this score by the editorial opinion of our Take away this authority from the President and the country would newspapers. I do not suggest, of course, that statesmanship have a weary time waiting for Congress to correct any mistakes of a should be subservient to journalism, but it is a poor rule that tariff bill, of which there are always plenty. does not work both ways, and I suggest that we pursue this But referring again to the second of the larger Minnesota rule in broader fields. I venture the assertion that the Ameri­ new~papers which I mentioned, listen to the Minneapolis Jour­ can press, in whatever degree it reflects public opinion, is more nal, speaking editorially on September 26: nearly a unit to-day in behalf of the principle of tariff flexibility Why any Senator representing an agricultural State and professing as now existing than it is upon any other one economic phi­ to have at heart the welfare of the farmers should join the Democrats losophy. This is illuminating, if true, because the Senate does in their scheme to hamstring the flexible provisions of the tariff act, is owe a certafu responsibility' to public expectation as well as to not plain. * • * If ever tbe welfare of an indu try required the its own ideas. It does need to remember that there was an existence of a method for the swift and nonpolitical adjustment of its epochal election last November, in which the people spoke con­ protective-tariff rates, that industry is agriculture. In no other industry vincingly, and as a result of which they have a right to antici­ is there such a fluctuation of production costs. And the flexible provi­ pate the results they sought. · sion of the tariff act is obviously designed tQ take care of emergencies Mr. President, I believe that the situation I am undertaking to attributable .to unforeseen fluctuations in production costs. The Demo­ bubmit is perfectly typified by the journalistic situation in cratic-Progressive coalition now proposes that the power to make emer­ respect to two newspapers in the great metropolis of Detroit, in gency changes within a limited range and on recommendation of the my own home State of Michigan. The splendid Detroit Free Tariff Commission, be taken away from the President and retained by Press, sturdily Republican and implacably protectionist, calls Congress ; which would amount to just about the same thing as aban­ the flexible provisions " logical and businesslike " and proves­ doning outright the 8-year-old move in the direction of scientific tariff as I believe can be proved conclusively-that "it does not making. remove the tariff-making powers from Congress." That orthodoxy might be expected from the Free Press be­ The editor concludes with the observation that he does not cause of its predilections. But here is its great neighbor, the see how any Senator from an agricultural State can vote to take Detroit News, which is a persistent critic of many increased limited flexibility away from the President. rates in the pending bill, · also promptly rising in concert with Make the same test over in North Dakota. What does the President Hoover to say : Fargo Forum say, which, I suspect, is as repre~entatl?e a newspaper as there is in that great area? This ·is what it says·: Mr. Hoover sounds the right note. It is difficult to understand this particular block's stand on• the And then: flexible features of the measure. They are avowed friends of agricul­ Here is tariff thinking we can indorse-with all the emphasis possible. ture. They want the agrarian industry placed on a parity with others. Yes; It is entirely wrong to destroy the opportunity to revise duties They said so a year . ago and have ooen saying so ever since the sessio~ which may prove higher than necessary to protect some industries and, opened. The flexible provisions of the bill, as now constituted, are t11erefo.re, become onerous upon the public. he1pful to the farmers. Now, mind you, this is a violent critic of the rates in the The editor concludes, after noting the argument against delP.­ present bill speaking. gation of powers, that- Quoting further : It is an easily understood position, but not a tenable one. Thus speaking out for the first time in the tarift fight, President And, Mr. President, here is a pregnant line from a newspaper Hoover at last speaks in the voice of the consumer or general public. at Watertown, S. Dak., significantly called Public Opinion: The Detroit News concludes-and again remember this is The President can have nothing more than delegated authority. That from a bitter critic of many schedules in the bi1l: is easily granted, but it can be just as easily witlldrawn. We believe President Hoover will stand pat to the end of the tariff That is not literally true, because, as the Senator from Vir­ fight in this position. It can put another face on it entirely. ginia [Mr. SwANSON] pointed out this afternoon, in a supreme Mr. President, I have examined many new1p.ape~ files; and emergency ·tl}ere might be an ulU¢ate veto which would take a I make .bold to say that this Detroit situation, this .method of two-thirds vote of the Congress in order to accomplish a recap­ measuring public opinion by Detroit newspaper. observations, ture of . '"Yhatever admini traUve latitude is here allowed. But finds a comparable parallel and discloses a_ comp<.lrable unity a · a practical proposition the statement stands foursquare. all over this country. If there is any one tariff act upon which Ordinarily 'speaking, it would take no more time for a Congress CONGRESSIONAL RECORD~ENATE 4147 to get back this adiiilnlstrative authority than it would to If this be deemed too partisan, then turn to a differently wrestle with a report from the Tariff Commission if we our­ complexioned journal. The Charleston Gazette, of West Vir­ selves should try to administer flexibility. Congress controls ginia, seems to be a stanch Democratic paper. It opens its in either event. Thus disappears the argument that we are editorial by saying : parting with our birtbrigbt. . It .li hard for a true Wilson Democrat to stir himself to any degree Suppose one sympathizes with the view that the Tariff Com­ of interest in the fight now being led against the flexible-tarif'r clause. mission bas worked badly in spots. I frankly concede that my distinguished friend from Wisconsin [Mr. LA Fo~~] pre­ It later observes: sented a formidable indictment which deserves attention m many No caucus of Senators has a commission from the Democratic Party particulars. I confess to some sympathy with this measure . of to oppose the efforts of President Hoover to continue the flexible idea. recent history although the distinguished Senator from Penn­ It recalls that President Wilson was the author of the fact­ sylvania mad~ a defense of the commission's labors yesterday finding idea in tariff making. But then it asks : which will not be easily ignored. . But typical of the critical view, there is another sigmficant What is the good of fact finding unless there be a way to act group of editorials which at least are. worth a bearln!f for promptly in the llght of the facts? Senator SIMMONS wants the re­ their logic and their challenge. Now, mmd you, we are listen­ ports to be made to Congre~;s. That means amendments. This was ing now to that section of the editorial voice of the country before the Senator from Nebraska came to the rescue. Committee which agrees that things have oot been satisfactory and ade­ hearings, speeches, and more speeehes. • • • May we ask how quate. What is their conclusion? can ·we protect labor, business, and the public, with the Wilson fact­ Here is the great Boston Globe. The Globe frankly declares finding commission if Congress must go through the legislative grind that the flexible system has not worked satisfactorily: on each fact? • • • It seems to us that the President has the best ot the ar_gument and we decline to follow the opposition to the But this does not prove what the foes of the flexible provision seem to flexible clause. think. It is .merely an indication that the principle bas not yet been given a trial · that the present machinery 1s not adequately empowered ; There is other testimony from other kindred sources. There that loophol~ exist. The remedy is stronger legislation to govern and is the great Brooklyn Eagle, listed as being independent Demo· direct the Tariff Commission. It will not be round In proposals to cratic. What does the Eagle say?- throw the principle overboard. Throwing the decisions of the Tari.ft' Commission Into Congress would tend automatically to put the entire tar:Ur on the operating table at Kindred philosophy comes from a powerful journalistic pulpit frequent Intervals. • • * The business of the country can not in Indiana, the Indianapolis News: afford to have its price basis thrown into flux every little whlle. Whether or not one believes that the principle, originally adopted in In other words, Mr. President, we dare not submit the tariff­ 1922 has been misused in practice, the validity of the poH~y 1t specifies and thus the country-to perennial political surgery. The net; is, ~ our opinion, incontestable under the protective system. • • • result of such jeopardy is too ominously prophesied by con· If the Nation is to be prepared for quick grappling with unforeseen temporary conditions on this floor .. factors in commerce, the formula can not well be discarded. While speaking of Democratic journals, it is of some interest Precisely the same pronouncement comes from the great to read the Charlotte Observer, of Charlotte, N. C., in which I Chicago Daily News, which says that it is "in contempt of rea­ find the following: son to take a reactionary step and abolish or practically destroy " HOOVER'S ARGUMENT the practical utility of the flexible idea. Out of tOO tarilf discussion one point appears clear, and that is, that· The Cincinnati Times-Star epitomizes the same viewpoint the President advances the sensible idea in support of the flexible fea­ when it says: ture, that the tariff system should be ba~ed on the changeable plan so Common sense is on the side of the President in his argument for as to meet the exigencies of changing times and situations. With the rE'tention of the flexible provision of the taritr law. President in position to adjust rates to meet new conditions, operation of the tariff to more wholesome elfect would be possible. This proposi­ Mr. President, there was a political cult in the United States tion eould be supported by all Senators except by those who object to 80 years ago which bore the suggestive name of Barn-Burners. giving the President any powers at all in the matter of administration They were bitter-end defeatists bent on rule or ruin. Their or the tariJf, and objection of that kind might be founded on political name came from the homely notion that they would burn a barn prejudice, rather than on business reasons. Admitting its confusion in order to rid it of rats. . If there are weaknesses in our flexible over the conflicting contentioru;, this way and that, about the tariff, administration, let us manfully and sensibly correct those weak­ The Observer would venture to give President Hoover the authority he nesses. But let us not scuttle the whole system. Let us not be seeks upon the ground upon which this authority is based. barn burners of a new and supposedly enlightened day. Then, Mr. President, there is another group of editorials These, I repeat, are typical cross sections of. the American which I think are very typical, I want to repeat, of the general press. They could be repeated almost without limit. True, country-wide sentiment, cross sectionally taken. There is an­ there are earnest oracles upon the other side. But the point I other group of editorials which go directly to the issue raised undertake to make is that there is greater agreement 1n the body by the substitute offered by the distinguished Senator from politic upon the principle of tariff flexibility than upon any North Carolina [Mr. Sn.t:MoNs], and now given new superficial other tariff phase. lures under the ingenious touch of the Senator from Nebraska Such exhibits are not entitled to control, but they have some [Mr. NoRRIS], who unquestionably has brought 1t ~ew superficial place in the deliberations of a parliament which persistently is charms. This group of editorials directly discusses the question told that its duty in this complex hour is to satisfy the public of whether or not the flexibility which the country needs, and expectation. which our situation demands, can be successfully and adequately Now, Mr. President, may I say just this word for myself transferred from an administrative to a legislative function. very briefly. Let me summarize the things that have affected Here is the Philadelphia Public Ledger, one among many. my own judgment, and have brought me to the position that I I quote: now occupy, I believe I started upon this debate open-minded. I think I Realizing that his proposal to repeal' the flexible tari1f is marked have demonstrated on some roll calls that I can be open-minded. for defeat, Senator SIMMONS has introdu_eed a substitute amendment I have listened carefully and attentively to everything that has to accomplish the same purpose by indirection. It provides that the been said. There have been some very great speeches made; President shall transmit to Congress the recommendations of the and I have no qua.ITel with the consciences of those who have Tariff Commission for changes in· rates. * • • According to made them trend differently from the conclusion at which I Democratic Senators this would preserve the .. principle" of the arrive. flexible tariff. It would do nothing of the kind. It would destroy that Here is the epitome of my conclusions. principle. • • • The plan is to make tariff tinkering by Congress (1) THll: FLli:XffiLll TARIFli' IS CONSTITUTIONAL a continuous performance. This would lead, as Mr. Hoover has said. Dissect and shadow the Supreme Court's decision as you to constant unsettlement of business and the importation of conten­ please, the layman sees this basic fact. The constitutionality tions and factious questions to the destruction of other important of the flexible principle is settled a.ffirmatively by specific and duties. The public frequently js warned to beware of sub­ * • * unanimous decision of the Supreme Court. By no stretch of the stitutes. Mr. SIMMONs's substitute for a flexible tariff is a sham and imagination do we violate either the letter or the spirit of the a delusion, lacking all the good qualities of the genuine article. Constitution when we march with the Supreme Court. No Typical of the smaller but virile ·press of the country, the pyramiding homilies can bury that basic tenet of constitutional Kenosha (Wis.) Evening News cogently observes: philosophy. It is apparent that it would be most awkward to be forced to present (2) THB FLilXIBLE TARIFF DOES NOT DELEGATE CONGRESSIONAL POWERS to· Congress every little change in the tariff as needed to .meet emergen. It. simply' makes possible a practical use of such powers in a cies. This would bode no good for the prosperity ot the country. continuing fasbioJL I agree that there must be zealous vigi.llince · 4148 CONGRESSIONAL RECORD-SEN ATE OCTOBER 2 in preserving the independent prerogatives of the legislature. to fit the progressive needs of a continuous situation which, not But we do not surrender a prerogative, we merely make it per­ being static itself, can not survive a static formula. It is, sistent, when we order a 'rule that gives it continuous efficiency. despite all its admitted infirmities, the nearest possible approach It is no delegation of power when tariff administrations are to taking the tariff out of politics, yet it is criticized by those given administrative latitude within limitations and a system who decry politics in tariff making, while often playing nothing specifically prescribed by Congress itself. To deny the pro­ else but politics themselves. priety of such practice would be to condemn many agencies with­ Mr. President, because flexibility goes to the economic essence out which modern, complex government would fall stagnant. of our responsibility to the country; because, in the judgment One of the oldest and soundest of all our institutional precepts of a unanimous Supreme Court, it is constitutional ; because it is this : does not delegate improper ministerial power; because it is eco­ A power equal to every possible contingency must exist somewhere nomically necessary; because it is economically and govern­ in the Government. mentally safe, and because it grows strongest in the light of fair I do not see how it can exist in the interlude between general analysis of the text; and because in my judgment more Ameri­ tariff revisions except as it exists within legislative prescription, can people believe in tariff flexibility than in any other phase but under administrative mechanics. This is the formula which or form of economic law or philosophy, I sustain the Republican our opposition now undertakes to wreck. position as pronounced by the chairman of the Senate Finance Committee and the President of the United States. FLEXIBILITY IS NECESSARY Mr. President, the entire economic system of the Nation hangs I do not use the word "necessary" in the sense in which it upon this vote. Shall it be flung backward a decade and chained was attacked by the distinguished Senator from Idaho the other in strait-jackets? Or shall it be permitted to progress in tune day. I use the word as strictly within the limit of our COD;Sti­ with swiftly changing conditions? The Democratic substitute tutional rights. I say flexibility is necessary as a mechamcal now offered us is essentially a subterfuge. It is nothing else in proposition in this present hour. practical net results. Administrative flexibility is vital to the Tl1e economic world, it is true, is in no such chaos as forced economic life of the Nation. It does not threaten any element the initiation of this principle in 1922. But the prospectus is no of the constitutional prerogatives belonging to the Senate and the less uncertain because changing economic methods at home and House. It is wanted and expected and needed by the American abroad make any firm prophesies impossible. people. It is implicit in the program of President Hoover. He :Mr. President, recently I was discussing with one of the has the public confidence to a degree that is a benediction. We great motor geniuses of this land what he saw ahead upon the do illy by our opportunities and our responsibilities if we fall economic horizon. The motor world is as accurately and out of step this afternoon with these progressive specifications. scientifically organized and economically armed as any in­ It is a moment when Republicanism should close ranks and dustry that ever existed. This man, whom I consider to be forward march. perhaps one of the two greatest experts in the world in his line, said: The VIOE PRESIDENT. The question is on the amendment of the Senator from North Carolina [Mr. SIMMONS] as modified. No sane man dare look ahead ·more than five years, and three years Mr. SMOOT. I ask for the yeas and nays. is the limit of conservatism. The yeas and nays were ordered. The impending movement we discussed recently upon this Mr. LA FOLLETTE. Mr. President, I suggest the absence floor regarding great groups of American capital abroad about of a quorum. to e~ter into European industry, of itself furnishes a warning The VICE PRESIDE T. The clerk will call the roll. that flexibility in tariffs is necessary if we are to be in position The legislative clerk called the roll, and the following Senators to meet the new exposures. These exposures in the motor world answered to their names: are typical of the uncertainties which, in common sense and .Allen Fletcher Keyes Simmons sound judgment, call for flexibility to-day just as much as in .Ashurst Frazier King Smith 1922. Otherwise we order ourselves into economic suicide. Barkley George La E'ollette Smoot Bingham Gillett McKellar Steck No general tariff revision, under such conditions, can avoid Black Glass McMaster Stelwer errors or anticipate every necessity. Inevitably there are errors Blaine Glenn McNary Stephens and omissions in the 485 printed pages which comprise this Blease Goff Metcalf Swanson Borah Goldsborough Moses Thomas, Idaho pending bill. Without flexibility these errors and omissions are Bratton Gould Norris Thomas, Okla. permanently shackled upon both agriculture and industry. Yet B'tock Greene Nye Townse.nd those who charge the bill with the greatest measure of error Brookhart Hale Oddie Trammell Broussard Harris Overman Tydings most violently oppose the only means for its correction. Capper Harrison Patterson Vandenberg They talk of other formulre for flexibility-anything but the Caraway Hastings l>hipps Wagner existing order. They talk of substituting Congress for the Connally I!atfield Pine Walcott Copeland fl:ayden Pittman Walsh, Mass. President as the agent of flexibility. I wish this were prac­ Couzens Hebert Ransdell Walsh, Mont. tical. But flexibility is a paradox and a hoax unless made Cntting Hetlin Reed Warren administrative rather than legislative in its mechanics. If Dale Howell Robinson, Ark. Waterman Deneen Johnson Robinson, Ind. Watson Congress, recognizing the need for flexibility to correct serially Dlll ·Jones Schall Wheeler the errors and omissions in its own tariff work, requires its Edge Kean Sheppard own subsequent consent to these ministerial corrections, then Fess Kendrick Sho.rtrldge all the same infirmities attach to the remedy as to the disease, The VICE PRESIDENT. Ninety Senators have answered to and the process of change to fit emergency is slowed down by their names. A quorum is present. one more tortuous step. Mr. WATSON. Mr. President, I ask that the pending amend­ FLEXffiiLITY IS SAirE ment may be read in full for the infarmation of the Senate. The greatest possible hazard in such a system lies in bad or The VICE PRESIDENT. The clerk will report the amend­ doubtful character in the Presidency and the Tariff Commis­ ment of the Senator from North Carolina [Mr. SIMMONS] as sion. \Ve are told by our opponents that just such character has modified, which is offered as a substitute for the amendment of been in evidence since 1922. I pass that indictment for the sake the Senator from Utah [Mr. SMoOT]. of this argument. But I point out that if it were true, then, Mr. ROBINSON of Arkansas. Mr. President, a parliamentary according to the premises of flexibility's foes, the period since inquiry. 1922 would show the system under greatest stress and strain. The VICE PRESIDENT. The Senator will state it. Has the country suffered from unjust and dangerous decisions? Mr. ROBINSON of Arkansas. The pending question, I under­ There is no such charge. To· fear such eventuality is largely stand, is on the amendment of the Senator from North Carolina academic. The degree of importance attaching to the opera­ as modified? tions of flexibility is bound always to put the President under The VICE PRESIDENT. It ~s. The amendment will be the fullest scrutiny whenever he exercises this limited adminis­ stated. trative function. He never will be able, even if he· would, to The legislative clerk proceeded to read the amendment. tyrannize this function. Mr. SIMMONS. Mr. President, the clerk has not read the FLEXIBILITY IS OPPOSED BY A MAZE OF INCO~SISTENCIES first provision, which is a repeal of the present section of the Thi suggests the weakness of the opposition. Flexibility is tariff. attacked, on the one hand, because it is said to be despotic; in The VICE PRESIDENT. The Chair will announce that if the the next breath because it is impotent. It can not be both. It is amendment is agreed to it repeals the provision referred to by assaulted because it is said violently to exploit the ultimate con­ the Senator from North Carolina. sumer; then because it moves so slowly and conservatively that Mr. SIMMONS. Very well. I want to have that understood. it fails to serve economic emergency. It can not do both. The The legislative clerk resumed and concluded reading Mr. SIM­ truth is that it is none of these things. It is a national recourse MONS's amendment, which is entire as follows: 1929 CONGRESSIONAL RECORD-SENATE 4149 In lieu of the matter proposed to be inserted by the amendment of Mr. FLETCHER. Mr. President, I am not going to take time Mr. SMOOT as a substitute for section 336 (p. 319, line 10, to and to discuss my amendment to the amendment. It is to meet a including line 12 on p. 326) insert the following: situation which I conceive will arise in two-thirds of the cases SEC. 336. Recommendations for adjustment of duties: (a) Upon that may be submitted to Congress. The substitute provides its own motion or upon application of any interested party showing that the Tariff Commission shall report to the President and good and sufficient reason therefor, the commission shall invl'Stigate that the President shall transmit that report to Congress with and ascertain the differences in the cost of production of any domestic his recommendations respecting any increases or decreases in article and of any like or similar foreign article. If the commission the rates of duty. Now, if that recommendation is satisfactory finds it shown by the investigation that tbe duty imposed by law upon to the Congress, there is no need for any congressional action the foreign article does not equalize the di.fl:erences in the C09t of pro­ at all. The evidence that Congress finds it satisfactory will be duction of the domestic article and of the foreign article when pro­ established by the failure or declination of Congress to act duced in the principal competing country or countries, then the com­ within three months after the recommendation is made to it. mission shall report to the President and to the Congress sucll increases I think that will meet probably two-thirds of the cases which or decreases in the duty upon the foreign article as the commission will .be presented. There is no need for congressional action in finds to be necessary in order to equalize sueh differences in dle cost such cases. Congress will signify its acquiescence in the Presi­ of production. Any such increased or decreased duty may include the dent's recommendation by simply declining to do anything for transfer of the article from the dutiable list to the free llst 01.' from three months after the recommendation is laid before it. the free list to the dutiable list, a change in the form of duty, Ol' a The VICE PRESIDENT. The question is upon the amend~ change in classification. The report shall be accompanied by a state­ ment proposed by the Senator from Florida to the amendment ment of the commission setting forth the findings of the comml~ion of the Senator n·om North Carolina as modified. with respect to the differences in costs of PJ'oduction, the elements of Mr. MOSES. Let us have the yeas and nays. cost included in the eost of production of the respective articles as The yeas and nays were ordered, and the legislative clerk ascertained by the commission, and any other matter deemed ~ertlnent .proceeded to call the roll. by the commission. Mr. FESS (when Mr. BURTON's name was called). Upon this The President, upon receipt of any such report of the commission, vote my colleague the junior Senator from Ohio [Mr. BURTON] shall promptly transmit the report to· the Congress with his recom· is paired with the senior Senator from Minnesota [Mr. SHIP­ mendations, if any, with respect to- the increase or decrease in duty STEAD]. If the Senator from Ohio· were present and per­ proposed by the commission. mitted to vote, he would vote "yea," and, I understand, that, Any bill having for its object the carrying out, in whole or in part, if present and permitted to vote, the Senator from Minnesota of the recommendations made by the commission in any such report would vote "nay." shall not· inchide any item not included in such report ; and in the con­ Mr. ODDIE (when his name was called). On this question sideration of such bill, either in the House of Representatives or in the I have a pair with the Senator from South Dakota [Mr. NoBr Senate, no amendment thereto shall be considered which fs not germane BEICK]. If he were present, he would vote " nay," and if I were to the items included in such report. permitted to vote I should vote " yea." (b) No report shall be made by the commission under this section The roll call was concluded. unless the determination of tiie commission with respect thereto is Mr. FESS. On this question the Senator from Kentucky reached after an investigation by the commission during the eotl'l'Se of [Mr. SAcKETr] is paired with the Senator from Missouri [Mr. which the commission shall have held bearings and given reasonable HAWES]. I understand the Senator from Kentucky, if present public notice of such hearings, and re.asonahle opportunity for the parties and permitted to vote, would vote " yea " and the Senator from interested to be present, produce evidence, and to be beard. The com­ Missouri, if pres~nt and permitted to vote, would vote" nay." mission is authorized to adopt such reasonable rules of procedure as The result was announced-yeas 42, nays 47, as follows: may be necessary to execute its functions under this section. YEAs-42 te) In ascertaining the differences in costa of production under this Allen Gotr McNary Stelwer section the commission shall take into consideration, in so far as it finds Bingham Goldsborough Metcalf Thomas, Idaho it pr.acticable-- Broussard Gould Moses Townsend Capper Greene Patterson Trammell ( 1) The differences in condltlons of production, including wages, costs Couzens Hale Phipps Vandenberg of materials, and other items in cost of production of like or similar Deneen Hastings "Ransdell Waleott articles in the UJ;~.ited States and in competing foreign countries; Edge Hatfield Reed Warren Fess Hebert Robinson, Ind. Waterman (2) Costs of transportation; Fletcher Jones Shortridge Watson (3) Other costs includi'bg the cost of containers and coverings o;t Gillett Kean Smoot whatever nature, and other charges and expenses incident to placing the Glenn Keyes Steck ~ .article in condition, packed ready for delivery, storage costs in the NAYS-47 principal market or markets of the United States and of the principal Ashurst Cutting Kendrick Sheppard Barkley Dale Simmons competing country or countries, and costs of reconditioning or repacking ... Kin~ Black r Dill La ollette Smith wherever incurred ; Blaine Fraziel' McKellar Stephens ( 4) Differences between the domestic and foreign article in packing Blease ~o-rge McMaster Swanson Borah Glass Norris Thomas, Okla. and containers, and in condition in which received in the principal Bratton Harris Nye Tydings markets of the United States ; Brock Harrison Overman Wagner (5) · Differences in wholesale selling prices of domestic ,and foreign Brookhart Hayden Pine Walsh, Mass. Caraway Hefiin Pittman Walsh, Mont. articles in the principal markets of the United States in so far as such Connally Howell Robinson, Ark. Wheeler prices are indicative of costs of production, provided such costs can not Copeland Johnson Schall be satisfactorily obtained; NOT YOTING--6 (6) Advantag-es granted to a foreign producer by a foreign government Burton Norbeck Sackett Shipstead ox by .a person, partnership, corporation, or association in a foreign Hawes Oddle country ; and So Mr. Fl..ETcHER's amendment to the amendment of Mr. (7) Any other advantages or disadvantages in competition whlch in­ SIMMoNs, as modified, was rejected. crease or decrease in a definitely determinable amount the total CQst at Mr. TRAMMELL. Mr. President, I offer an amendment to which domestic or foreign articles may be delivered in the principal the amendment. market or markets of the United States. The VICE PRESIDENT. The Senator from Florida will The VICE PRESIDENT. The yeas and nays have been send it to the desk, and the Secretary will state it. ordered. · The LEXUSLA.TIVE CLERK. In the amendment of the Senator Mr. FLETCHER. Mr. President, I desire to offer the follow­ from North Carolina [Mr. Snn.f:oNB], as modified, on page 4, ing amendment to the amendment. At the conclusion of para­ after line 25, it is proposed to add the following : graph 2, page 2, strike out the period following the word "Com­ (d) That if Congress within six months after the date of the receiv­ mission " and insert a comma and the following language : ing of such report and recommendation from the President fails to act And 1f Congress tails or refuses to ta.k:e any action thereon within tbereou, either by an act of both Houses or a resolution by either three months and complete such action within !our months thereafter, House of Congress, the President may, by proclamation, declare and fix the President is authorized, by proclamation, to put into effect the such increase or decrease in rates of duty as t•ec!)mmended by him to changes in the rates of duty in accordance with his recommendation to Congress: Provided, That the total increase or decrease of such rates Congress: Provided, Such changes in rates shall not exceed 50 per cent of duty shall not exceed 50 per cent or the rates specified in title 1 of of the rates of duty provided in the law, either as to increases or this act, or in any amendatory act: And twovided. further, That 30 days decreases; but this proviso shall not apply to the free list. after the date of such proclamation by the President the rates of duty Mr. SIMMONS. Mr. President, I am not able to accept the so fixed by his proclamation shall be the duty thereafter imposed and amendment offered by the Senator from Florida, because I collected upon the articles covered by his proclamation. think it violates the principle upon which Senators are favoring The VICE PRESIDENT. The question is on agreeing to the my amendme.!?-t. amendment of the Senator from Fl()rida [Mr. TRAMMELL] to the 4150 CONGRESSIONAL RECORD--=-sEN XTE OCTOBER 2 amendment of the Senator. from North Carolina [Mr. SIMMONS], NOT VOTIN~ as modified: Burton Norbeck Sackett Shipstead Mr. TRAl\11\IELL. 1\!r. President, the amendment proposed Hawes Oddie by me to the amendment of the Senator from North Carolina So Mr. TRAMMELL's amendment to the amendment of Mr. in policy resembles that which was offered by my colleague SIMMONS, as modified, was rejected. [1\.lr. FLETCHER], but in its terms it is somewhat different The The VICE PRESIDENT. The question now is upon the amendment to the amendment provides that the President shall amendment, in th~ nature of a substitute, offered by the Senator transmit his recommendation and the report of the Tariff Com­ from North Carolina [Mr. SIMMONS], upon which the yeas and mission to Congress, and if the House or the Senate, acting nays have already been ordered. The\ clerk will call the roll alone, fails to adopt a resolution within the 6-month period, or The legislative clerk proceeded to call the roll. · if both Houses fail to pass an act upon his recommendation, Mr: FESS (when Mr. BURTON's name was called). On this that then the President may have the authority to issue his question my colleague [Mr. BuRToN] is paired with the Senator proclamation providing for the incre.ase or decrease in the rate from Minnesota [Mr. SHIPSTEAD]. If my colleague were present as recommended in his message to the Congress. and at liberty to \ote, he would vote " nay " and if the Senator It does seem to me that the amendment, if agreed to, would from Minnesota were present and voting he would vote " yea." furnish the machinery for a re\ision of the tariff that would Mr. ODDIE (when his name was called). On this question I in no wise interfere with the prerogative of Congress or take have a pair witli the senior Senator from South Dakota [Mr. from Cong·ress its power in the matter of tariff making. Con­ NoRBECK]. If he were present, he would vote "yea," and if I gress will have ample opportunity during six months to consider were at liberty to vote I should vote "nay." the presidential recommendation. The Senate can adopt a reso­ Mr. FESS (when Mr. SACKE!lT's name was called). Making lution disagreeing with the President's recommendation, and the same announcement that I made a moment ago, the Senator that alone will stop the President from issuing his proclamation, from Kentucky [Mr. SAcKErT] is paired with the Senator from or the House may adopt a resolution disagre.eing with his recom­ ¥issouri [Mr. HAWES]. If they were present, the Senator from mendations, and that would likewise check the President from Kentucky would vote "nay," and the Senator from Missouri issuing hls proclamation. would vote " yea." I believe that under the substitute proposed by the Senator Mr. SCHALL (when Mr. SHIPSTEAD's name was called). l\Iy from North Carolina with the an1endruent I have offered we colleague [Mr. SHIPSTEAD] is ill. If he were present and voting \\'ould in no wise take from the authority of Congress and at the he would vote " yea." ' same time we would provide some additional maehinery in the The roll call having been concluded, the result was . an­ matter of revising the tariff either upward or downward. I nounced-yeas 47, nays 42, as follows : regard that as very essential. We do not get any action through YEA8-47 Congress on tariff questions except after the lapse of 6 or 7 or Ashurst Cutting Simmons Barkley Dill ranHouette Smith 8 year& This amendment would iii no wise offend the idea of Black Frazier McKellar Stephens those who feel that we would ' be delegating the autfiority of Blaine George McMaster Swanson Congrese, because the President c6uld not act if either branch Blease Glass · Norris Thomas, Okla. Borah Harris Nye 'l'rammell of -Congress disapproved of 'his recommendations. I hope the Bratton Harrigon . Overman Tydings amendment to the amendment will ·be adopted. Brock Hayden Pine Wagner Mr. Sll\Il\IONS. Mr. President, I can not accept the amend­ Brookhart Heflin Pittman Walsh, Mass. Caraway Howell Robinson, Ark. Walsh, Mont. ment of the Senator from Florida to my amendment. It involves Connally Johnson Rchall Wheeler exactly the same principle as the amendment we have just voted Copeland Kendrick Sheppard down. NAYS-42 The VICE PRESIDENT. The question is on agreeing to the Allen Glenn Keyes Steck v amendment offered by the Senator from Florida U,Ir. TRAMMELL] Bingham · Goff McNary Steiwer Broussard Goldsborough Metcalf Thomas, Idaho to the amendment of the Senator from North Carolina [Mr. Capper Gould Moses Townsend SIMMONS] as modified. Couzens Greene Patterson Vandenberg Mr. WATSON. 1\!r. President, on this question I demand the Dale Hale Phipps Walcott Deneen Hasting Ransdell Warren yeas and nays. ' Edge Hatfield Reed Waterman The yeas and nays were ordered, and the legislative clerk Fess Hebert Robinson, Ind. Watson proceeded to call the roll. Fletcher Jones Shortridge Mr. FESS (when Mr. BURTON's name was called). On this Gillett Kean Smoot question my colleague, the junior Senator fl'om Ohio [Mr. NOT VOTING-6 Burton Norbeck Sackett Shipstead BURTON] is paired with the senior Senator from Minnesota Hawes Oddie [1\Ir. SHIPSTEAD]. Were the junior Senator from Ohio present he would vote ''yea," and the senior Senator from Minnesota, So Mr. SIMMoNs's amendment to Mr. SMOOT's amendment if present, would vote "nay.'' was agreed to. Mr. ODDIE (when his name was called). On this question Tb,e ·VICE PRESIDENT. The question is upon the amend­ I have a pair with the senior Senator from South Dakota ment of the Senator from Utah [Mr. SMOOT] as amended by the [Mr. NoRBECK]. If he were present, he would vote "nay," and amendment of the Senator from North Carolina. if I were permitted to vote I should vote "yea." The amendment, as amended, was agreed to. Mr. FESS (when Mr. SACKETT'S name was called). On this Mr. WALSH of Massachusetts. Mr. President, I ask unani­ question the senior Senator from Kentucky [Mr. SAOKETI'] is mous consent to have inserted in the RECORD a statement issued paired with the senior Senator from Missouri [Mr. HAWES]. and published on September 30 by the minority members of the If the senior Senator from Kentucky were present, he would Senate Finance Committee setting forth their objections to the vote " yea," and the senior Senator from Missouri, if present, flexible provisions of the tariff law. would vote "nay." -- There being no objection, the statement was ordered to be T}le roll call having been concluded, the result was an­ printed in the RloooiiD, as follows: nounced-yeas 41, l!ays 48, as follows : JOIN'l' STATEMENT BY THE MINORITY MEMBERS OF THE SENATE FINANCE YEAS-41 COMmTTEE Allen Goldsborough Metcalf Thomas, Idaho A question of far-reaching consequences transcending considerations Bingham Gould Moses Townsend Broussard Greene Patterson Trammell of party prompts us to issue a public statement in relation to the so­ Capver Hale Phipps Vandenberg called flexible provisions of the tariff bill now pending before the Deneen Hastings Ransdell Walcott Senate. Edge Hatfield Reed Warren Fess Hebert Robinson, Ind. Waterman The question involved is one that in our opinion strikes at the Fletcher· Jones Shortridge Wafson very roots of constitutional government. It concerns the preservation Gillett Kean Smoot 1 unimpaired or the abandonment of the power of levying taxes by that Glenn Keyes Steck v Goff McNary Steiwer branch of the Government which the forefathers agreed should alone NAYS-48 be charged with that duty and responsibility. Ashurnt Couzens Johnson Schall Whatever argument could be advanced during the war and imme­ Barkley Cutting Kendrick Sheppard diately following for delegation to a degree of the taxing power to King Simmons Black Dale the Executive ·unquestionably no longer exists. To incorporate now Blaine Dill La Follette Smith Blease Frazier McKellar Stephens in the law any recognition ~ a right· of the Executive to impose taxes Borah George McMaster Swanson without the concurrence of the legislative branch is without justifi­ Bratton Glass Norris Thomas, Okla. Brock Harris Nye Tydings cation. Brookhart Harrison Overman Wagner Authority in the Executive to make the laws that govern the course Caraway Hayden Pine Walsh, Mass. of commerce through taxation is especially objectionable. It is an Connally Heflin Pittman Walsh, Mont. Copeland Howell Robinson, Ark. Wbeeler entering wedge toward the destruction of a biu;;ic principle of repre- ' 1929 CONGRESSIONAL RECORD-· SENATE 4151 sentative go-vernment, for which the independence of the country was desire to be just as liberal as possible in complying with the attained and which was secured permanently in the Constitution. request of every Senator. The Senator from North Carolina There is no issue here as to the integrity of any Executive who has must understand, however, ·and I know he does understand, that bad or may have extended to him the exercise of this power. The issue we have taken a long time on· the question just disposed of, and is one of taxation by one official, be be president or monarch, in contrast I hope the time that has been consumed is more than will be to taxation by the representatives of the people elected, intrusted ex­ taken on any other. section of the bill. I am going to ask the clusively with the power to seize the property of the citizen through Senate to spend just as little time as possible on the rest of the taxation. If proof be needed that the danger which the forefathers administrative features, because they are not very important, foresaw is inherent in this issue, a mere casual inquiry into the methods and let us get to the rates as soon as we can. employed, selfish influences used, sinister schemes and contrivances After an executive session is held I am going to comply with brought to bear, one need but examine the record. the request of the Senator from North Carolina that we take a PROCESS HELD VIRTUALLY SECRET recess until to-m!)rrow morning at 11 o'clock; and then I am The principle is: Are taxation laws and their application to be going to ask the Senate to take up the section I have mentioned made virtually in secret, whate-ver may be said about a limiting rule, and keep on with the consideration of the bill. Mr. SIMMONS. May I say to the Senator from Utah that ~r are they to be enacted by the responsible representatives of the peo­ ple in the Congress, where public debate is held and a public record as far as the. matter we have just disposed of is concerned, while made of each official's conduct? we ha-ve been considering it for quite a long time, I have never The arbitrary exercise of the taxing power, all the more dangerous if since I have been in the Senate witnessed a debate in which disguised and not obvious, in its basic character is tyranny. Resistance every Senator who spoke confined himself SQ strictly to the sub­ to the impairment of this popular right has largely occasioned many of jed matter, .without any attempt to consume unnecessary time. the wars and revolutions of the past. The debate has be€n one of the greatest and ablest that I have An issue of this importance should not be associated with the opin­ witnessed since I have been a Member of this body; and I as­ ions or necessities of those interests, States, or sections tha-t directly sure the Senator that upon this side of the Chamber there is not profit by some rate schedule in the body of the tariff act. With respect the slightest disposition to discuss any matter that may come up to the principle here at stake any trading or logrolling is especially in connection with the bill any longer than is absolutely neces­ unjustifiable and indefensible. Neither should we be unduly influenced sary to present the views of Senators. by the attempt to divert attention from this momentous issue by con­ )lr. SMOOT. I want the Senator to understand that I have demnation of and emphasis upon the dilatory and unsatisfactory results not uttered a word of criticism of the time that has been taken of congressional procedure. upon the flexible provision of the bill. I know that that has taken more time than any other part of the bill will take. POINT TO AMENDlliENTS Mr. SIMMONS. I think the Senator is right about that. No one seeks to prevent or in any way to interfere with the in­ l\lr. SMOOT. I only express the hope and the wish that vestigations and reports of the Tariff Commission in connection with from now on we will give attention to every item, and remain emergency tariff legislation. The point is, we emphatically insist that in sessiOJl each day until a reasonable hour. I do not want to final action and responsibility based on Tariff Commission reports shall call the Senate into session before 11 o'clock. I hope we can be taken by the Congress. get along by meeting at 11 o'clock and closing at 5. That is a For the purpose of preventing apprehended congressional delay an pretty good day's work; and I believe our task can be accom­ amendment has been made providing for the submission of the reports plished and the bill passed if we adhere to that program, and to the Congress by the President, and furthermore, an amendment will confine ourselves strictly to the consideration of the bill. be presented strictly limiting action by the Congress to matters germane Mr. SIMMONS. I do not think there has been, up to this to the particular subject matter or rates recommended by the President time, any unnecessary debate upon any matter that has been after investigation by the Tariff Commission. before the Senate in connection with this bill. I think we can We do not hesitate to say that if this extrordinary and what we assure the Senator that there will not be, in _the future, and believe to be unconstitutional authority passes now from the Congress, that we will cooperate as much as we possibly can in facilitat­ it is questionable if there will e-ver again be a tariff bill originated and ing action. enacted by the Congress. Mr. SMOOT. I appreciate what the Senator says. It is our solemn judgment that hereafter all taxation through the Mr. ROBINSON of Arkansas. Mr. President-- / tariff and regulation of commerce thereby wlll be made by the Executive. The VICE-PRESIDENT. Does the Senator from Utah yield It is the inherent tendency of this tariff-changing device and the ap­ to the Senator from Arkansas? parently conscious purpose of its proponents to use it to keep the tariff Mr. SMOOT. I do. out of Congress, where it is such an embarrassing business, as every­ Mr. ROBINSON of Arkansas. Of course, there are a number body knows, to the party that profits politically by it. So also it will of rates in the bill that will provoke more or less prolonged be of distinct advantage to the interests that are the direct beneficiaries discussion. of the tariff. Mr. SMOOT. I know it. Iu an age where there has been a steady tendency to rob the indi­ :Mr. ROBINSON of Arkansas. But the great majority of vidual citizen of his power and influence in his Government through them may be disposed of with comparatively little debate. I bureaucracy, we deem it our duty to vigorously protest any further see no reason why a conclusion should not be reached on the encroachments in this directio~ and especially with respect to taxation. bill during the present month. I do not mean on any conference In the hope of arousing the people, regardless of party, to take a report that may be proposed upon the bill. broad and public -view of this important public question, we make this Mr. SMOOT. .Mr. President, I want to say that I appreciate appeal. the statement just made by the Senator from Arkansas [1\lr. FURNIFOLD M. SIMMONS, of North Carolin.a. RoBINSON]. I hope his expression will meet the approval of PAT H..uuusoN_, of Mississippi every Senator. I believe it will. WILLIAM H. KING_, of Utah_ Mr. HARRISON. Mr. President, what is the next matter the WALTEB F. GEORG111_, of Georgia. Senator desires to have taken up? There is one other adminis­ DAVID L WALSH, of Massachusetts. trative feature which will provoke a good deal of discussion, I ALBEN W. BARKLEY_. of Kentucky. think; that is the question of the domestic valuation. ELMER THOMAS_, of Oklahoma. Mr. SMOOT. That is what I want to have taken up. TOM CONNALLY, of Texas. l\Ir. H.AllRISON. That provision the Senator wants to bring Mr. SMOOT. Mr. Pres.ident, I should like now to take up up t~morrow? section 340, "Domestic value-conversion of rates," page 335 of Mr. SMOOT. I want to bring it up to-morrow morning. the bill. EXECUTIVE SESSION Mr. SIMMONS. Mr. President, in view of the fact that we have just finished a very important amendment, in which all l\Ir. SMOOT. Mr. President, I move that the Senate proceed Senators have been very deeply and intensely interested, I desire to the consideration of executive business. to ask the Senator from Utah if be will ·not oonsent to a recess The motion was agreed to ; and the Senate proceeded to the now until t~morrow -in order that at that time we may take up consideration of executive business in open session. the matter when we are fresh? In addition to that, I desire to The VICE PRESIDENT laid before the Sena.te sundry mes­ say that one of the members of the committee who had expected sages from · the President transmitting Executive nominations, to discuss the next question to come up has indicated to me that which were referred to the appropriate committees and -which he is not very well this afternoon and ·would be glad if the appear at the end of to-day's proceedings. matter could be put over until to-morrow. Mr. PHIPPS. From the Committee on Post Offices and Post Mr. SMOOT. Mr. President, I have no desire whatever to Roads I -report favorably certain nominations, which I ask may ' fo1·ce the Senate to take action upon any of these items. I be placed on the calend~r. LXXI--262 4152 CONGRESSIONAL RECORD-SENATE, OCTOBER 2 The VICE PRESIDENT. The nominations will be placed on William A. Denn, to be postmaster at Stewardson, Ill., in place the calendar. of Oral Beck. Incumbent's commission expired December 10, GOVERNOR OF .ALASKA 1928. Mr. BINGHAM. Mr. President, from the Committee on Ter­ IOWA ritories and Insular Affairs I report back favorably the nomina­ Robert G. Knox, to be postmaster at Cherokee, Iowa, in place tion of George A. Parks, of Colorado, for reappointment as of C. M. Sullivan, resigned. Governor of Alaska. I ask unanimous consent for the present Charles B. Cornie to be postmaster at Mount Union, Iowa. con&ideration of the nomination. Office became presidential July 1, 1929. The VICE PRESIDENT. Is there objection to the present William G. Stephenson to be postmaster at Pleasantville, Iowa, consideration of the nomination? The Chair .hears none, and, in place of E. A. Greenway, deceased. without objection, the nomination is confirmed and the Presi­ KANSAS dent will be notified. If there are no further reports of com­ Frank H. Dieter to be postmaster at Oak Hill, Kans. Office mittees, the calendar will be proceeded with. became presidential July 1, 1929. THE JUDICIARY LOUISIANA The legislative clerk read the nomination of 1\fr. Scott Wilson William L. Brown to be postmaster at Lecompte, La., in place to be United States circnit judge. of L. B. Brown, resigned. The VICE PRESIDENT. Without objection, the nomination Is confirmed and th President will be notified. MICHIGAN The legislative clerk read the nomination of John Boyd Avis Myron W. Mills to be postmaster at 1\Iarysville, 1\Iich., in to be United States district judge. place of W. J. Newton, resigned. The VICE PRESIDENT. Without objection, the nomination MISSISSIPPI is confirmed and the President will be notified. Jerry M. Reynolds to be postmaster at Meadville, Miss., in POSTMASTERS place of M. E. Sullivan, removed. The legislative clerk proceeded to read sundry nominations Charley D. Bell to be postmaster at Walnut, Miss., in place for appointments as postmasters. of C. D. Bell. Incumbent's commission expired September 22, Mr. PHIPPS. Mr. President, I ask that the appointments 1926. of those nominated to be postmasters be confirmed and the MISSOURI President notified. John A. Mills to be postmaster at Jonesburg, Mo., in place The VICE PRESIDENT. Is there objection? 'Vithout ob­ of J. A. Mills. Incumbent's commission expired December 17, jection, the appointments will be confirmed and the President 1928. will be notified. Herbert L. Raines to be postmaster at Marysville, Mo., in NAVY place of J. F. Hull, resigned. The legislative clerk proceeded to read the names of sundry Claude R. Selway to be postmaster at Williamstown, Mo., in officers recommended for promotion in the Navy. place of A. W. Selway, deceased. Mr. HALE. I ask that these promotions be confirmed en MONTANA bloc and that the President be notified. Arthur 0. Kline to be postmaster at Polytechnic, Mont. Office The VICE PRESIDENT. Without objection, the nominations became presidential July 1, 1929. for promotion will be confirmed and the President will be notified. NEW YORK RECESS William Brown to be postmaster at Liberty, N. Y., in place Mr. WATSON. As in legislative session, I move that the of M. J. McGibbon, resigned. Senate take a recess until to-morrow at 11 o'clock. NORTH DAKOTA The motion was agreed to; and the Senate (at 3 o'clock and Naomi N. Prindiville t(} be postmaster at Rutland, N. Dak., in 50 minutes p. m.) took a recess until t(}-morrow, Thursday, 'place of Naomi N. Prindiville. Incumbent's commission ex­ October 3, 1929, at 11 o'clock a. m. . pired December 12, 1928. omo NOMINATIONS John J. Azalliop to be postmaster at Dillonvale, Ohio, in place E{l}ecutwe nominations received by the Senate Octobe-r 2 (legis- of Theresa Campfield, resigned. lative flay of September 30), 1929 PENNSYLVANIA REGISTER OF THE LAND OFFICE Jules C. Luyten to be postmaster at Indianola, Pa. Office Peter Michael Larson of Minnesota, to be register of the land !became presidential July 1, 1929. office at Cass Lake, 1\finn., vice James R. Waters, deceased. RHODE ISLAND POSTMASTERS James A. Greenhalgh to be postmaster at Alton, R. I. Office ARKANSAS became presidential July 1, 1929. Collis E. Key to be postmaster at Foreman, Ark., in place of TEXAS J. E. Reid, resigned. Maggie Hannum to be postmaster at Christoval, Tex. Office FLORIDA became pre idential July 1, 1929. Thomas G. Ozmer to be postmaster at Fernandina, Fla., in Elmer G. Wright to be postmaster at Kress, Tex., in place place of E. J. Roux, deceased. of C. W. Smith, resigned. Milton E. Clark to be postmaster at Pensacola, Fla., in place Lucile R. Ryon· to be postmaster at ~eadlift, Tex. Office be­ of M. E. Clark. Incumbent's commission expired January 21, came presidential July 1, 1929. 1929. UTAH Emmons R. Groff to be postmaster at St. Augustine, Fla., in place of E. R. Joyce. Incumbent's commission expired Janu­ John L. Sevy, jr., to be postmaster at Richfield, Utah, in ary 12, 1929. place of G. M. Jones, deceased. GEORGIA - WEST VIRGINIA Henrietta E. Butt to be postmaster at Buena Vista, Ga., in Homer W. Bailey to be postmaster at Ashland, W.Va. Office place of F. E. Chapman. Incumbent's commission expired became presidential July 1, 1929. March 3, 1929. Ma1~y D. Dye to be postmaster at Clendenin, W. Va., in place HAWAII of P. G. Rogers, removed. J o e Gomez to be postmaster at Hanapepe, Hawaii. Office William S. Thomas to be postmaster at Glen Rogers, W. Va., became presidential July 1, 1929. in place of John White, resigned. . Nancy Ridenour to be postmaster at Ridgeley, W.Va., in place ll.LINOIB of Nancy Ridenour. Incumbent's commission expired February Peter R. Main to be postmaster at Gibson City, Ill., in place 28, 1929. of A. R. Tarbox, resigned. Wilbur C. Welty to be postmaster at Hoopeston, Ill., in place CONFIRMATIONS of K. A. Cardiff, deceased. Frank W. Harris to be postmaster at Macomb, Ill., in place lll:ceott-tive rwmina.tion8 confirmed by the Senate October 2 (legis­ of J. 1\L Pace, deceased. lative day of September 30), 19'29 William T. Beekman to be postmaster at Petersburg, Ill., in GoVERNOR OF ALASKA place of H. E. Beekman, resigned. George A. Parks. 1'929 CONGRESSIONAL R'ECORD-SEN ATE 4153

UNITED STATES CIRCUIT JUDGE Joseph M. Stuart. Louis Shane, jr. Scott Wilson, first circuit. William L. Anderson. Paul L. Dudley. George 1\f. 'Vhitson, jr. Eugene S. Karpe. UNITED STA'fES DISTRICT JUDGE Wendell F. Kline. Ralph D. Smith. John Boyd Avis, district of New Jersey. Donald L. Mills. Jacob E. Cooper. APPOINTMENTS AND PROMOTIONS IN THE NAVY Richard M. Boaz. Thomas F. Conley, jr. To be rea,r admiral Paul W. Watson. Ralph E. Westbrook. Allen R. Joyce. William Turek. Arthur J. Hepburn. Louis E. French. Luther K. Reynolds. To be captains Clarence 0. Taff. Olin P. Thomas, jr. George B. Wright James S. Woods. Stanley G. Nichols. James N. Shofner. Vaughn K. Coman. John M. Smeallie. Henri de B. Caliborne. Charles J. Whiting. Arthur K. Atkins. William P. Gaddis. John A. Winfrey. Guy B. Helmick. John J. London. Kenneth Whiting. Theodore R. Frederick. Robert R. De Wolfe. Alexander S. Wadsworth, jr. William A. Dolan, jr. Daniel T. Birtwell, jr. To be com ma·nders Ramond C. Ericson. Ambrose F. Crowley. Eugene F. May. George G. Crissman. Alfred T. Clay. Holloway H. Frost. William T. Jones. Wallace J. l\Iiller. DaYid H. Stuart. Joseph M. Deem. Harold A. Fravel. Donald A. Crandell. John M. Ashley. Lucius C. Dunn. Frank T. Butler. Charles R. Rohweder, Ewart G. Haas. Robert :r. Guiler, jr. Henry D. Rozendal. Walter E. Fratzke. Warren L. Moore. William R. Smedberg, 3d. Clifford T. Corbin. To be Ue·utenant commanders Ed win S. Schanze. Lewis R. Miller. Heywood L. Edwards. Henry F. Ripley. Guy W. Clark. John N. Walton. Wayne H. Miller. William H. Carpenter. Thomas D. Ross. Evan G. Hanson. Francis L. Busey. Robert de C. Baker. Ed ward Sparrow. William G. Ludlow, jr. James E. Leeper. Hamilton W. Howe. Ben H. Wyatt. Carl W. Brewington. Theodore W. Rimer. Solomon D. Willingham. Earl W. Morris. Leonard B. Austin. Roy A. Ga.no. Benjamin S. Custer. Robert W. Fleming. John H. Jenkins. Earl K. Olsen. Benjamin R. Crosser. William J. Morcott. Andrew R. Mack. John K. Wells. Harry D. Johnston. Robert E. Keating. James P. Conov-er, jr. Benjamin Van 1\f. Russell. William T. Kenny, Philip W. Warren. John E. Fradd. Thompson P. Elliott. To be lieutenants Charles W. :Moses. Andrew H. LaForce. Howard L. Jennings. Cecil· C. Adell. Orville K. O'Daniel. Daniel B. Miller. Walter E. Gist. Willard J. Suits. John K. Raybold. Duncan C. MacMillan. Thomas T. Beattie. Owen Rees. Mannert L. Abele. DeWitt C. E. Hamberger. James B. Voit. Ralph F. Bradford, jr. 1\Iorton K. Fleming, jr. Raymond S. Lamb. Orner A. Kneeland. Michael J. Malanaphy. Gerald D. Zurmuehlen. Joseph W. Callahan. George W. Bauernschmidt. William B. Ault. William C. Eddy. William C. Asserson, jr. Edward C. Forsyth. Edward J. O'Kane. John A. Glick. Dwight l\l. Agnew. Robert W. Bedilion. Vernon 0. Clapp. Charles L. Boyle. Marvin C. Parr. Charles C. Phleger. Frederick L. Riddle. Morgan Redfield. Gale E. Griggs. James B. McVey. Russell G. Sturges. Edward J. Boughton', 3d. William White. Edward A. Solomons. Robert Hall Smith. Robert G. Armstrong. : Howard E. Ballman. · Rogers Elliott. Henry F. MacConsey. Ernst A. Ruth, jr. Eugene S. Sarsfield. Herbert S. Duckworth. Chauncey Moore. Barron G. Lowrey. Leonard Branneman. Frank C. Sutton. Robert B. Higgins, jr. Joe B. Paschel. Ernest R. Perry. William B. Holden. Clarke H. Lewis. George W. Campbell. Robert R: Moore. , Harold E. Parker. Robert McC. Peacher. Erasmus W. Armentrout, jr. Earl S. Caldwell. Maurice J. Strong. Donald H. Johnston. Paul l\1. Curren. John J. McClelland. Samuel K. Groseclose. Clifford M. Alvord. Diggs Logan. Marshal.l B. Gurney. Joseph H. Willingham, jr. Henry Farrow. To be lieutenants (junior grade) Ranson Fullinwider. · Robel:t H. Hollenbeck. Thomas M. Wolverton. Edmund M. Ragsdale. John L. Woodbury. Carl W. Ramsey. ·welford C. Blinn. Charles 0. Larson. Charles Jackson. James R. Linsley, jr. Clifford H. Duerfeldt. Thomas M. Whelan. Walter L. Dyer. George L. Shane. John J. Greytak. Charles F. Horne, jr. Edward S. Hutchinson. Maxwell F. Leslie. Alexander B. Cecil. John H. Ellison. Charles T. Singleton, jr. Norman L. Holt. Ralph H. Linsley. Allen l\1. Kemper. Paul H. Tobelman. Edwin F. Voit. Daniel J. Sweeney. Abbott l\1. Sellers. Wilfred Bushnell. Otho P. Smoot, jr. Augustus C. Long. To be medical directors Joseph R. Haskin, jr. Joseph F. Mallach. Abraham H. Allen. Dallas G. Sutton. George Prifold, jr. John O'Shea, jr. Harry A. Garrison. Montgomery A. Stuart. Clyde F. Malone. James A. Morrison. Elmer E. Curtis. Montgomery E. Higgins. William 0. Floyd. Leonidas M. Matthews. Charles J. Holeman. William Chambers. Charles H. Lyman, 3d. Frederic A. Graf. George W. Shepard. · Albert G. Mumma. John C. S. McKillip. To be assistant dental surgeons Benjamin B. C. Lovett. John B. McLean. · William C. Sprenger. Charles A. Buchanan. Clifford E. Allen. Clifford C. De Ji,ord. . Carlton B. Hutchins. Joseph R. Stefanac. Raymond A. Lowry. Lyman R. Vaughan . Dennis J. Sullivan. Karl J. Biederman. Charles F. Hoyt. Charles F. Woodard. Walter J. Whipple, 2d. Caroll H. Taecker. Frederick V. Tully. Harlan K. Perrill. William L. Pryor, jr. To be assistamt 11aym-asters Charles B. Hart. Willard M. Sweetser. John K. Chisholm. William .J. Laxson. Marvin P. Evenson. Clarence Broussard. To be assistant civil engineers James H. Ward. Herman 0. Parish. William S. Whiteside. Karl F. Poehlmann. Charles L. Strain. Robert H. l\leade. Walter C. Stahl. Francis X. Carmody, jr. To be ensign Herald F. Stout. John F. Gallaher. Jack W. Ames. Alvord J. Greenacre. James B. Fox. To be c1ziet pay cler·k William G. ·Myers. Nathaniel C. Barker. Charles J. Hawkins. ' Nathaniel S. Prime. John J. Crane. Wesley A. Wright. William G. · Cooper. MARINE CORPS Philip Nickum, jr: Dougla~ H. Fox. To be first lieutenants John L. Burnside, jr. Frank B. Schaede. · · Perry K. Smith. Charles L. Fike. 4154 CONGRESSIONAL RECORD-SENATE OcTOBER a· To be second lieutenants· A bill (S. 1806) granting an increase of pension to Minnie T. James V. Bradley, jr. Randall M. Vict~ry. Goodhart (with accompanying papers); George R. Weeks. Paul D. Sherman. A bill (S. 1807) granting an increase of pension to Malinda E. Jolm F. Stamm. Young (with accompanying papers); and POSTMASTERS A bill ( S. 1808) granting an increase of pension to Isabel Combs (with accompanying papers) ; to the Committee on Pen­ MISSISSIPPI sions. Christopher R. Berry, Benton. By Mr. METCALF: Florence Churchwell, Leakesville. A bill ( S. 1809) granting an increase of pension to Annie E. Willis L. Malley, Merigold. Eddy (with accompanying papers); to the Committee on Pen­ Birdisue G. Byrd, Mount Olive. sions. John P. Edwards, Ocean Springs. By Mr. HATFIELD: Ben Linn, Pickens. A bill ( S. 1810) granting a pension to Martha Long (with Richard D. Shelby, Rosedale. accompanying papers) ; to the Committee on Pensions. Emma D. Covington, Wiggins. By Mr. McNARY: NORTH CAROLINA A bill ( S. 1811) providing for a study regarding the construc­ James P. Turnley, Cameron. tion of a highway to connect the northwestern part of the United VERMONT States with British Columbia, Yukon Territory, and Alaska, in cooperation with the Dominion of Canada; to the Committee on Guy R. Garvin, East Barnet. Agriculture and Forestry. John T. Tudhope., North Hero. - By Mr. COPELAND: Florence E. Metcalf, Westminster. A bill (S. 1812) to authorize the collection of annual statistic9· relating to certain public institutions; to the Committee on Com­ merce. SENATE A bill (S. 1813) granting a pension to Joseph L. Hadden; to THURSDAY, October 3, 19~9 the Committee on Pensions. A bill (S. 1814) for the relief of Timothy Cahill; and {Legislative day of Monday, September 30, 1929) A bill (S. 1815) for the relief of Edward Brooks; to the Com­ The Senate met at 11 o'clock a. m., on the expiration of the mittee on Naval Affairs. recess. By Mr. SCHALL: . THE JOURNAL A bill (S. 1816) to extend the times for commencing and completing the construction of a bridge across the Mississippi Mr. JONES. Mr. President, I ask unanimous consent that River at or near Wabasha, Minn.; to the Committee on Com­ the Journal for the calendar days of Monday, September 30, merce. Tuesday, October 1, and Wednesday, October 2, may be approved. The VICE PRESIDENT. Without objection, it is so ordered. PROPOSED RECOMMI'ITAL OF TARIFF BILL WITH INSTRUCTIONS CALL OF THE ROLL Mr. THOMAS of Oklahoma gave notice of the following mO· Mr. FESS. Mr. President, I suggest the absence of a quorum. tion intended to be made by him : The VICE PRESIDENT. The clerk will call the roll. I move that the bill (H. R. 2667) to provide revenue, to regulate The legislative clerk called the roll, and the following Sena~ors commerce with foreign countries, to encourage the industries of the answered to their names : United States, to protect American labor, and for other purposes, be re· Allen Frazier King Smith committed to the Committee on Finance with instructions to eliminate Ashurst George La Follette Smoot therefrom the following-described text : Barkley Gillett McKellar Steck Bingham Glass McMaster Steiwer Beginning with line 5, on page 2, and i.ncluding line 4, on page 121, Black Glenn McNary Stephens and beginning with line 9, on page 146, and including line 23, on page Blaine Goff Metcalf Swanson 279 : Provided, That the elimination of such text shall be without preju. Blease Goldsborough Moses Thomas, Idaho llorah . Gould Norris 1:homas, Okla. dice to the submission in the Senate of specillc amendments to existing Bratton Greene Nye Townsend law : And provided further, That when the consideration ot said bill is Brookhart Hale Oddie Trammell completed in the Senate and before final passage, said Finance Committee Broussard Harris Overman Tydings Capper Harrison Patterson Vandenberg is hereby authorized and requested to amend section 648, relating to Caraway Hastings Phipps Wagner repeals, so as to make said section conform to the action of the Connally Hatfield Pine Walcott Senate. Copeland Hawes Pittman Walsh, Mass. Couzens Hayden Ransdell Walsh, Mont. REVISION OF THE TABJFF Cutting Hebert Reed Warren Dale Heflin Robinson, Ark. Waterman The SE:'nate, as in Committee of the Whole, resumed the con­ Dene(::n Howell Robinson, Ind. Watson sideration of the bill (H. R. 2667) to provide revenue, to regu­ Dill Johnson Schall Wheeler Edge Jones Sheppard late commerce with foreign countries, to encourage the indus­ Fess Kendrick Shortridge ~~~~ed~-~~~~~~~~~~ Fletcher Keyes Simmons other purposes. Mr. FESS. My colleague the junior Senator from Ohio [Mr. Mr. SMOOT. Mr. President, before beginning consideration BURTON] is still detained from the Senate by illness. I ask of the conversion provision, section 340, page 335, there are that this statement may stand for the day. three minor amendments which I wish to have made. I am Mr. SCHALL. My colleague the senior Senator from Minne­ quite sure they wUl lead to no discussion. They are to correct sota [Mr. SHIPSTEAD] is still detained from the Senate by illness. mistakes made by the printer or by the clerk of the committee in I ask that this announcement may stand for the day. sending the material down for printing. . The VICE PRESIDENT. Eighty-nine Senators have an­ On page 336, line 19, the word "importation " should be swered to their names. A quorum is present. "exportation." I ask that that change be made so it will read "at the time of exportation of the imported merchandise," in­ BILLS INTRODUCED stead of" at the time of importation." Bills were introduced, read the first time, and, by unanimous The VICE PRESIDENT. Without objection, the correction consent, the second time, and referred as follows: will be made. By Mr. McKELLAR: l\1r. SMOOT. On page 337, in lines 9 and 10, the word "in" A bill ( S. 1798) for the relief of Alice M. A. Damm (with ac­ is used twice. I ask that the word "in" at the beginning of companying papers); to the pommittee on Foreign Relations. line 10 be stricken out. Byl\!r. REED: The VICE PRESIDENT. Without objection, the correction A bill (S. 1799) to authorize the payment of interest on funds will be made. of the United States Soldiers' Home; to the Committee on Mili­ 1\.fr. SMOOT. The next amendment is on page 342, line 13, tary Affair . where I ask to have a similar change made by striking out the By Mr. ROBINSON of Indiana: word "importation " and inserting the word " exportation," so A bill (S. 1800) granting a pension to Elizabeth Huron; it will read "at the time of exportation of the imported A bill (S. 1801) granting a pension to Enoch Davis Young; merchandise." A bill ( S. 1802) granting a pension to Catherine Brock; The VICE PRESIDENT. Without objection, the amendment A bill ( S. 1803) granting a pension to Emma Knight; is agreed to. A bill ( S. 1804) granting a pension to Daisy Childres; Mr. SMOOT. As agreed last eyening, I ask that the Senate A bill (S. 1805) granting an increase of pension to Josephine now consider the amendment· on page 335, being section 340, Simpson (with accompanying papers); " Domestic Yalue--Con ersion of rates.''