9134 CONGRESSIONAL RECORD-SENATE. J .UNE 22,

REPORTS OF COMMITTEES ON PRIVATE BILLS AND ment of Federal employees; to the Committee on Reform in RESOLUTIONS. the Civil Service. Under clause 2 of Rule XIII, 6043. Also, petition of George A. Phillips, 764 Ninth A Yenue, Mr. FROTHINGHAM: Committee on Military Affairs. H. R. New York City, urging the passage of the Fairfield bill rela­ 9316. A bill for the relief of Robert J. Ashe; without amend­ tive to retirement of Federal employees; to the Committee on ment (Rept. No. 1124). Referred to the Committee of the Reform in the Civil Service. Whole House. 6044. By 1\fr. WILLU.l\.ISON : Resolution adopted by the Fed­ eral Employees' Union, No. 188, of Rosebud, S. Dak., urging the passage of an act providing for the continuance of the in­ PUBLIC BILLS, RESOLUTIONS, AND MEMORIALS. creased compensation pending the going into effect of the pro­ Under clause 3 of Rule XXII, bills, resolutions, and memorials posed reclassification of Federal employees; to the Cornmittee­ were introduced and severally referred as follows: on Appropriations. By Mr. ELLIOTT: A bill (H. R. 12105) providing funds for 6045. By Mr. WOODS of Virginia: Petition of residents of the erection of additional suitable and necessary buildings for the State of Virginia protesting against the propo ed duty on the National Leper Home; to the Committee on Public Build­ cotton gloves ; to the Committee on Ways and Means. ings and Grounds. By Mr. FISH: A bill (H. R. 12106) for the retirement of all enlisted men who have served honorably in the United States Army as herein provided ; to the Committee on Military Affairs. SENATE. By Mr. PETERSEN: A bill (H. R. 12107) to fix the salaries of postal employees in cities of over 1,000,000 inhabitants; to THURSDAY, June fJ2, 1922. the Committee on the Post Office and Post Roads. (Legislative day of Thursday, April 20, 1922.) By Mr. FISH: Resolution (H. Res. 375) for the consideration of H. R. 8062; to the Committee on Rules. The Senate met at 11 o'clock a. m., on the expiration of the Also. a resolution (H. Res. 376) providing for the printing recess. of 5,000 additional copies of the hearing on H. J. Res. 322, Mr. McCUMBER. Mr. President, I suggest the absence of a favoring the establishment in Palestine of a national home for quorum. the Jewish people ; to the Committee on Printing. The VICE PRESIDENT. The Secretary will call the roll. The reading clerk called the roll, and the following Senators answered to their names : PRIVATE BILLS AND RESOLUTIONS. Ashurst Gooding Mccumber Simmons Borah Hale :McKellar Smith Under clause 1 of Rule XXII, private bills and resolutions Cameron Harreld McLean Smoot were introduced and severally referred as follows: Capper Harris McNary Spencer Caraway Harrison Moses Stanley By Mr. COLE of Ohio: .A bill (H. R. 12108) granting a pen­ Culberson Heflin Myers Sterling sion to Ella S. Robison ; to the Committee on Invalid Pensions. Cummins Johnson Nelson Sutherland By Mr. GR.AHA..M of Illinois: A bill (H. R. 12109) granting Curtis Jones, N. Mex. Newberry Trammell Dial Jones, Wash. vddie Walsh, Mass. a pension to Frances A. Harris; to the Committee on Invalid Dillingham Kellogg .Overman Walsh, Mont. Pensions. · du Pont Keyes l'epper Warren By l\Ir. KOPP: A bill (H. R. 12110) granting an increase of Edge Ladd Poindexter Watson, Ga. Ernst La Follette Rawson Watson, Ind. pension to Francis 1\1. McDonald; to the Committee on Invalid Frelinghuysen Lodge Robinson Williams Pensions. Glass · McCormick Sheppard Willis l3y Mr. LANGLEY: A bill (H. R. 12111) granting an increase l\Ir. SMITH. I was requested to announce the absence of the of pension to Emiline Rader; to the Committee on Invalid Senator from Nebraska [l\lr. NoRRis], the Senator from Illinois Pensions. [Mr. McKINLEY], and the Senator from South Dakota [Mr. By Mr. MOORE of Ohio: A bill (H. R. 12112) granting a NORBECK], who are engaged in a hearing before the Committee pension to Candace A. Kain; to the Committee on Invalid on Agriculture and Forestry. Pensions. Mr. TRAMl\fELL. I wish to announce the absence of my By Mr. MORGAN: A bill (H. R. 12113) granting an increase colleague [Mr. Fr.ETCHER] on account of illness. My colleague of pension to Mary E. Pinkley ; to the Committee on Invalid has a general pair with the senior Senator from Delaware [Mr. Pensions. BALL]. By Mr. RICKETTS: A bill (H. R. 12114) granting a pension The VICE PRESIDENT. Sixty Senators have answered to to Charles F. Ogden; to the Committee on Invalid Pensions. their names. A quorum is present. II R. Also, a bill (H. 12115) granting an increase of pension to DISTRIBUTION OF SPEECHES BY FEDER.AL RESERVE BANKS. Lewis H. Palmer; to the Committee on Pensions. By 1\fr. ROACH: A bill (H. R. 12116) granting an increase Mr. WATSON of Indiana obtained the floor. , of pension to Geneva Beba; to the Committee on Invalid Pen­ Mr. HEFLIN. 1\fr. President, will the Senator yield to me sions. for a moment? I want to ask unanimous consent for the con­ By Mr. TEMPLE: A bill (H. R. 12117) granting a pension bideration of a resolution. to James A. l\Ioninger; to the Committee on Invalid Pensions. Mr. SMOOT. What is the resolution? By Mr. WALSH: A bill (H. R. 12118) granting a pension Mr. HEFLIN. It is Senate Resolution 308, which I offered to Mahala E. Broadbent; to the Committee on Invalid Pen­ yesterday afternoon, with regard to the circulation of the sions. speech of the junior Senator from Virginia [Mr. GLASS]. That Senator was not in the Chamber at the time, and the Senator from Connecticut [Mr. McLEAN] asked that the re. olution go PETITIONS, ETC. over until this morning, when the Senator from Virginia could Under clause 1 of Rule XXII, pet:tions and papers were laid be here. The resolution calls upon every Federal reserve bank on the Clerk' desk and referred as follows: to do what the Atlanta bank has done: 6035. By the SPEAKER (by request) : Resolutions adopted Mr. WATSON of Indiana. I should like to know whether by the Presbytery of San Francisco at Livermore, Calif., urging the matter will occasion debate? the passage of House Joint Resolution 131 and Senate Joint Mr. HEFLIN. Not at all. Resolution 31 ; to the Committee on the Judiciary. Mr. WATSON of Indiana. Yesterday I got myself into a 6040. Also {by request), resolution adopted by the Presby­ situation where I yielded the whole blessed day, and I am not tery of San Francisco at Livermore, Calif., indorsing House bill going to yield in that way to-day. 9753, to secure Sunday as a day of rest in the District of Co­ Mr. HEFLIN. If it leads to debate I shall not press its con­ lumbia; to the Committee on the District of Columbia. sideration at this time. 6041. By Mr. KISSEL: Petition of the Merritt & Chapman Mr. McCORMICK. Of course it will lead tu debate. Derrick & Wrecking Co., New York City, N. Y .. against the Mr. WATSON of Indiana. It is bound to lead to debate, I passage of House bill 10034; to the Committee on the District of am afraid. Why can not the Senator wait until I conclude m~ Columbia. 30 minutes' speech? That is all the time I intend to take. 6042. By l\Ir. RYAN: Petitions of John Hillock, 401 West Mr. HEFLIN. I am here and the Senator from Virginia is Thirtieth Street; David Lyons, 440 West Forty-fourth Street; here at this time. It would take but a moment, I think, to dis­ Frederick Buckhotz, 459 West Forty-ninth Sti.·eet; and Charles pose of the resolution. I do not think anyone will object to it. F. Hillock, 401 West Thirtieth Street, all of New York Oity, Mr. WATSON of Indiana. If no one else objects, I shall not urging the passage of the Fairfield bill relative to the retire- object. !922. CONGRESSIONAL RECORD-SEr_,_ATE. 9135

Mr. EDGE. Mr. President, in the absence of the chairman of the Committee on Banking and Currency, the Senator from Yes. Nn. Connecticut [l\fr. McLEAN], I, as a member of the comDiittee, would feel compelled to object. I do not wish to object, but I Are you 1n favor of prohibition? ..•...... _•.. - . _..•.•.. _.••. 1,409 1,954 think the chairman of tbe Committee on Banking and Currency ADre you in favor oftlie repeal of the eighteenth amendment?._ .. 1,903 1,plant . . This m1'!thod requires take one ready letter writer-i still in favor of prohibition and be· Jcsu of the mixture p r acre and keep it thoroughly agitated all the lieve that it brings good results in efficiency from his thousands of time. We find that none of the mixture should be carried overnight employees. He is still also in favor of the 12-hour workin .. day and as it is hard to mix the next morning. No more should be mixed than 7·dav working week and bellev that. they bring good result"' from his can be used during the day, and it should be thoroughly stirred before employees. The fact that the experience of the civilized world has pouring into the bottl~ (or buckets if the mop is used). long df'monstrated this to be an erroneous assumption has not changed Mr. Randolph Gillespie applied the mola. ses mixture to three ditrer· hi opinion. though perhaps the plea of the Pre ident of the United ent fields on the 12th, 13th. and 14th. This morning (the 16th)" he spent more than an hour in these fields searching for weevil • He found ~!a~~d ~~ ~~~s~rir e~ili te::tffka t't:!~ humane system from which no live weevils and no recently punctured square • There were many Again, the figures presented by the M:ann!acturers' Record summing weevils in the fields before the poi on was applied. up the character of replies received from the signers reveal a condition Mr. J. L. Jordan was picking about 50 weevils per acre from his fields that should 1·eally alarm those who hold prohibition as their first before poisoning. He poisoned on the 8th and 9th, and on the 12th and article of poUtical faith. Remember that this was a hand-picked list· 13th he sent hands into the fields to pick weevils and tbe hand could that the signers of the petition had solemnly called u~on Congress to find no weevils. Mr. Jordan and Mr. Middleton went into the field3 make the country "dry"; t)lat they were all upon public record and tn themselves and looked for some time and could find none. tbe minds of their fellow countrymen as demanding this revolutionary On Monday, the 12th instant, we poisoned the field near the Pedigreed change; that, furthermore, national prohibition ha not yet existed Seed co:s gin and warehouses in which numerous weevils had been three years and that concerted efforts to enforce it have not been going obserl"ed. On Wednesday we sent about 20 hands into this field, offer· on qulte two and a half years. In circumstances like these men would ing them 2 cents each for live weevils. A few quit pretty promptly on bave the strongest reasons in the world to say they had not repented­ not finding any weevilg, About lli howevel', kept looking for some time~ at least yet. But the poll furnished by the Manufactnrers Record but none found a W1'!evl1 after gomg1 over about 7 acre . Mr. Sharpe, shows a remarkable change among the signers of the pt>tltion all ot who was in charge of the gang. raiSed the price to 5 cents per weevil whom had demanded absolute prohibition. Tbe poll follows: ' but still failed to find any. Later the price was advanced to 10 centa Per cent. per weevil, and not a single hand fonnd a weevil after searching two hours. AgamstFor .prohiblti?n. prob1b1tion in some ______form------!,. ___ 98.1. 50 George .T. WUds, l)lant breeder of the Pedigreed Seed Co., carried For strict prohibition------85. 50 out the following experiments during the past week: For beer and wine------7 Test No. 1 : At 1 p. m. on the 10th instant nine htlls of cotton were Against Vols~ead Act------1. 25 treated with the molas es mixture. There are two plants in each hill, For modifi~ation of Volstead AcL------. 75 and only one ot the plants in ench hill was treated. Twentv-one weevils For high hcense or Government control------1 were- placed on these nine hills, about one-half being piaced on the For dispensary system------~------.25 poisoned plants and the rest on the unpoisonl'd plants-. At 6 p. m.. the Undecided or noncommittal------2. 75 nine hills were examined, with the result that six livlng and six dead Seven per cent of the former absolute prohibitionists already demand· weevils were found on the treated plants. At 2 p. m. on the 12th the ing beer and wine ! Fourteen and a half per cent of these carefully same plants were examined and two live and eight dead weevils were electeu "drys" now a¢nst strict prohibition! We should say that found. At 9 a. m. on the 14th the plant were again examined an.d no any political party which suffered such defections was in for a bad live weevils and 10 dead ones were found. As weevila move about con- licking. 81.derably at this season it ls assumed that all that remained on the A~ a conb•ast to the partial exhibit ot the Manufacturers' Record let treated hills were destroyed within the test period. The mixture o ed us present the results of a questionnaire sent out In New Jersey by in this test was § gallon water, 1 gallon molasses, and 2 pounds calcium the Association Against the Prohibition Amendment. This ques"tion­ arsenate. naire was sent to business and professional men throughout the State Test No. 2: At 1 p. m. on the 10th instant 10 hills were treated with without. discriminating between know~ '.'wets" and "drys," and, in­ the foll(}wing mixture: 8 gallons of water, 3 gallons ot molasses, and deed' without knowledge as to the opinions of the persons addressed 10- pounds of calcium arsenate. And on the 10 hills 20 weevils wl're Of th<' more than 3,500 replies received. the very great majority bein~ placed. At 6 p. m. on the ame day, 4 living and 5 dead weevils f.rom employers of labor, the followini: is an accurate summary: were found. At 2 p. m. on the 12th 2 living and 7 dead weevils were 9136 CONGRESSIONAL RECORD-SENATE. JUNE found. .At 9 a. m. on tbe 14th 1 live weevil and 8 dead ones were Mr. WATSON of Indiana. Let me answer the Senator from~ found. M.ixture used above is very light and dries up quickly. Test No. 3: Same mixture was used on test No. 3, under about the Arkansas by saying that the experts ba>e furnished me this same conditions, and 75 per cent of the weevils succumbed. statement showing that the total number of committee amend­ Test No. 4: In test No. 4 a mixture of 5 gallons of molasses, 5 ments proposed is 2,082. gallons of water, and 7~ pounds of calcium arsenate was used on tive hills. Twenty weevils were placed on the five hills. At 8 a. m. on Mr. ROBINSON. That, then, includes all of the committee the 13th no living and four dead weevils were found. On the 14th, amendments? a shower having fallen durrng the night of the 13th, an-0ther search l\Ir. WATSON of Indiana. That is my understanEurope as reporting of the bill originally, to change and to reduce the rates they were in 1914 and that because of that fact some of these under the fire of the minority side of the Chamber? rates were excessive. Mr. President, the statistics show that l\1r. WATSON of Indiana. Not one. an ounce of gold purchases 17.22 hours of labor in the United Mr. HARRISON. How many amendments since the bill was States, 50.16 hours of labor in Great Britain, 95.50 hours of originally reported from the Finance Committee have been labor in Japan, 117.31 hours in France, and 201.66 hours in changed by amendments being offered at the instance of the Germany. Thes~ facts are not disputed. Finance Committee and the rates reduced as originally carried Mr. HITCHCOCK. Mr. President, will the Senator quote the in the bill as reported to the Senate? source of his statistics? l\Ir. WATSON of Indiana. There have been 84 such change . Mr. W A.TSON of Indiana. Yes; the statistics come from l\1r. HARRISON. That action was taken by the Senate after the English Parliament and have been indorsed, according to full consideration and after the iniquitous provisions of the my understanding, by our own Ta1iff Commission. That is my bill had been revealed by Members on the Democratic side of understanding. the Chamber. Mr. HITCHCOCK. Can the Senator quote the source of that l\Ir. W A.TSON of Indiana. My friend from Mississippi flatters information? himself. The amendments very largely were the result of the deliberations of the Committee on Finance itself. Occasionally, Mr. WATSON of Indiana. I did not ask, but in the commit­ or semioccasionally, rather, a helpful suggestion may have come tee it was understood that the Tariff Commission had seen from the other side. That has not occurred very often and the these figures and had indorsed them. suggestions have not been very illuminating, but, after all, Mr. JONES of New .Mexico. Mr. President, may I inquire, sometimes suffici~t to put the committee upon inquiry. Sen­ also, as to the date when those figures would be applicable? ators must remember that at the outset of the discussion on this l\Ir. WATSON of Indiana. On the 1st of February. bill it was stated the committee were not infallible and that l\fr. JONES of New l\Iexico. Of this year, I assume? there had been mistakes made; that because of shifting values, Mr. WATSON of Indiana. Yes. because of changing prices, because of chaotic conditions, they l\fr. JONES of New Mexico. And from all countries at the could not precisely say what the difference was in the cost of same time. conYersion, and therefore, as a matter 6f course, the committee .Mr. WATSON of Indiana. I do not understand the purport were compelled to change their views with reference to those of the Senator's question. matters not in any very great respect, and, after all, simply as Mr. JONES of New 11e:xico. I mean the same date applies to the rate, not as to the principle involved. That is all there to each country? is to that proposition. Changes will continue to be made be­ Mr. W .ATSON of Indiana. That is my understanding of the cau e of the existence of these very conditions. Even in the old statistics, and I think they are absolutely reliable. I do not days when the Dingley law was framed and when the Payne­ think there is a question in the world about their authenticity. A.ldrich law was formulated the committee made many changes Mr. JONES of New Mexico. Mr. President, will the Senator after the bills were reported because they acquired additional state also to what line of occupation those figures relate? The information on the subject; but at this time, when the whole Senator doubtle s knows that wages vary in the different lines world is chaotic, when industry can not put it foot upon any­ of occupation in every country in the world. thing that is finally solid, there must of course be changes Mr. WATSON of Inrliana. l\iy understanding is th.at these from time to time to make the tariff what we think it ought to figures were collated from five of the key industries in the be-adequately protective of .American industry. various countries. · Mr. McCORMICK. Mr. President. the Senator will remember Mr. HITCHCOCK. If I may ask one more question, were that the Senator from Alabama [Mr. UNDERWOOD] a few day;;; the figures the Senator has just quoted used as the basis for ago bore witness to the difficulties which every Ways and framing the pending bill in the Finance Committee? Means Committee and every Finance Committee confront, ancl Mr. W A.TSON of Indiana. They were not. They merely testified that no tariff bill could be written which was infallible authenticate the other information we had along the same and in which mistakes were not made. line ; they simply back up the facts and the figures in our l\1r. McLEAN. Mr. President, I think something like a thou­ posse sion. sand amendments were recommended by the Chairman of the Mr. HITCHCOCK. Will the Senator state what informa­ Finance Committee in 1913 in the framing of the Underwood­ tion he did have when he made up the bill? Simmons law. Mr. W A.TSON of Indiana. Oh, Mr. P1·esident, the Senator Mr. WATSON of Indiana. l\Iy recollection is that the num­ knows that it is just as impossible for me to answer that ques­ ber was something in excess of a thousand; but, be that as it tion under a three or four day speech as it would be to fiy.. may, these are the conditions that confront the committee. We were literally months in collecting the information. XLil--576 9138 CONGRESSIONAL RECORD-SENATE. JUNE 22,

Mr. HITCHCOCK. The Senator has referred to some in!or· Mr. WATSON of Indiana. I wUI not yield any further on mation that came in subsequent to the formation of the bill-­ that point, because it is absolutely useless to discuss that sort Mr. WATSON of Indiana. Some information; certainly. of thing. Mr. HITCHCOCK. Will the Senator please give us the Mr. JO~"'ES of New Mexico. I was not going to refer to the source of the information of the committee prior to the forma· point suggested by the Sena.tor from Nebraska, but I did want tion of the' bill? to make just one further inquiry. To what extent have these Mr. WATSON of Indiana. We had information constantly. wages varied during the past year? And upon what ratio are We began the consideration of the tariff bill away back over a those ~ages increasing from month to month? year ago. We heard witness after witness, dozens of them and Mr. WATSON of Indiana. Not· greatly. They have varied scores of them, experts from every one of the departments, somewhat, of course, in all European countries; likewise in our from the Tariff Commission and the Treasury Department, ex· own. Wages in many of the industries in America are not as pert appraisers, together with the importers and their repre­ high as they were. We all know that. Wages in many of the sentatives, who came before us, and they are not backward countries of Europe are somewhat higher than they were. The about coming. Senator must remember that the question of depreciated cur­ Mr. HITCHCOCK. It has been stated here upon the floor that rency enters into this whole proposition, and enters into it in a there was no knowledge as to the cost of labor abroad. way that can not be avoided. Because instead of having a Mr. WATSON of Indiana. Oh, Mr. President, Wh? stated normal value of 24 cents, the mark to-day has a value of one­ that? balf cent or less, measured in gold. Those things all enter Mr. HITCHCOCK. Several Senators on the other side hnve into this question of the ta.rift, and all enter into the question made the admission. ·of conversion costs, and all must be taken into consideration -Mr. WATSON of Indiana. Who? in coming to a conclusion as to conversion costs in these rival Mr. HITCHCOCK. I do not recall just at the present time. commercial countries. I do not like to hold anyone responsible, but we have asked Mr. JONES of New Mexico. I think the Senator is quite for it. We have asked if this bill was made up upon the theory right in that statement. I merely wanted to suggest that in the of compensating for the difference in the cost of labor at home country which is usually referred to in this connection wages and abroad, and it has been stated that they did not know what have been increasing by large percentages from month to that difference was; that the statistics were lacking; and I now month, and that increase is goiiig on to-day, and that any state­ ask the Senator, if he had them prior to the making up of the ment which the Senator may mah"e with respect to wages on the bill, to state what they were, and he says he has not them. ·1st of February, at least as to Germany, has no special signifi­ Mr. WAT SON of Indiana. The idea of the Senator standing cance with regard to conditions there to-day, and by the time up here on the floor of the United States Senate and asking me, this bill becomes a law conditions will be entirely different from as a member of the Finance Committee, to furnish him the facts what they were on the lat of February or from what they are upon which we formulated this bill! Why, I could not do that to-day, as the Senator doubtless will admit. under two weeks if I were to try my level best. The Senator Mr. WATSON of Indiana. Mr. President, there is not any knows that. question but that there are changing values and shifting costs about the world. That is the reason why, from time to time, Mr. HITCHCOCK. The Senator has given the :figures which the committee, after hearing the testimony, have somewhat they receivecl subsequently to making up the bill, and all I am changed rates in order to conform to this new condition that asking is for him to give the figures which they had prior to they have found to exist, which is the wise and sane thing to the making up of the bill. Mr. WATSON of Indiana. We had a vast volume of figures do. That is why, until the conclusion of this bill, we may and data that we acquired from every available and accessible continue to change some of these rates so as to measure as nearly as possible the difference in conversion costs in the e source, and upon that basis we formulated this bill, and as fast rival commercial and industrial countries. Further than that hS we acquir~ additional knowledge on the subject we will I can not say. Further than that nobody can say. We started change the provisions of the bill to conform to that additional out with that in view. We have not been deflected from our knowledge. That is all I can say to the Senator-that we have course, nor shall we be until the conclusion of our delibera:ions. been formalating it along the line of the difference in the cost Mr. President, n.s an instance of cheap production abroad, of produetion at home and abroad, which is the fundamental Republican Senators, working through the Treasury Depart­ basis of a protectirn tariff system. ment, brought to Washington a large number of articles made Mr. HI'l'CHCOCK. Then let me ask the Senator whether the in foreign con.nh'ies. These could be indefinitely multiplied, fi!!'Ure which he has just read, representing, as he thinks, the running into the thousands, if we cared to bring them here, dl:fference in the cost of labor in Europe and in the United covering almost every phase of manufacturing activity, and run­ States, are substantially the same figures which the committee ning along all lines of industrial usefulness; but we have used in making up this bill? brought here what, in a short space of time, we thought we Mr WATS ON of Indiana. I will not say that they were, 'Could present to the Senate as evidence, first, of cheap produc­ becatise we (}id not have those figures at that time. tion abroad, and, secondly, of the large profits made by import­ l\Ir. HITCHCOCK. In what respect did they differ? ing houses in the United ·states, thereby giving the country to Mr. WATSON of Indiana. I can not answer that question, understand the eagerness and the intensity of the propaganda because that would involve the statement of details which I that is being circulated throughout the country against the am not here to discuss and which would involve a very long passage of this bill. discussion if I were to go into the subject. I have had some knowledge of tariff legislation in this coun­ Mr. HITCHCOCK. I think the Senator has practically ad­ try for 30 years; and while, of course, the opposition has al­ mitted that they had no figures before the bill was made up, ways been from the same source, while the importers have Mr. WATSON of Indiana. Mr. President, I can not under­ always objected t-0 the enactment of a protective tariff and Etand the insistent repetition of the Senator, contrary to all the probably always will, neV'ertheless it has been more insistent facts that he knows very well existed and do exist. The Sen­ this time than ever before. It has been more extensive and ator knows that we did not just get off in a corner and make more intensive than I have ever known it to be in my experi­ up a tariff bill without any information, without ever having ence; and that is why we have these resolutions passed every­ asked anybody about it. He knows just as well as I know, who where, and that is why we have ·tbese'I>etitions sent to us from sat. there and heard the evidence, that we bad testimony from various stores and houses throughout the country, coming to everywhere. My honorable friend, the Senator from North us almost every day,,. petitions already printed and signed be­ Carolina [Ur~ SIMMONS], attended these meetings. He heard low by large numbers of citizens. The people did not get up these witnesses te,gtify, one after another, dozens and scores of those petitions. They were sent out by these importing houses them. Many times the Senator from Massachusetts [Mr. W ALBH] t.o the retail stores, and they put them on their counters, and was also present, and frequently the Senator from New Mexico they asked everybody that came in to sign them, and everybody [l\!r. JONES]. They heard this testimony, very great volumes of signed, because they simply made the statement, just as our it · and after that testimony had been adduced before the com· Democratic friends have always made the statement whenever mfttee we proceeded to formulate the bill, and after that other a tariff bill was under consideration, that the tariff was a tax, people continued to come, and Senators came and Representa­ and that it was added to the price that the consumer would have tives came and business men came and importers came, and we to pay, and that it would therefore necessitate an increase continued to gather additional data and additional information, in the cost of living, and all that sort of thing; and people

1which, to the very best of our ability, we incorporated from hastily signed petitions and resolutions of every kind, without tlme to time in the schedules. That is all I am going to say waiting to give the tariff bill an oppartuntty to justify itself about that. or giving its provisions a chance to ehow what will be worked Mr. JONES pf New Mexico. Mr.. President- out under thei~ 9perati.Qn. 1922. CONGRESSIONAL RECORD-SENATE. 9139

I challenge directly the statement that this bill will add Mr. WATSON of Indiana. Mr. President, if the Senator will measurably to the cost of living or to the cost of commodities wait a minute and give me a chance to tell him something, I will in the United States. I can not go into that in detail, because do so. These figures are taken from the invoices furnished by it is far afield from what I started out to talk about. the importers, directly from the invoices themselves. They Mr. JONES of New Mexico. Mr. President-- recite what they paid for this article in dollars and cents. Mr. WATS ON of Indiana. I do not want to yield now, be­ Mr. JONES of New Mexico. No; Mr. President-­ cause I am going on to the thing I want to talk about. Nothing Mr. WATSON of Indiana. In dollars and cents. gives me greater pleasure than' to yield to my friend when it Mr. JONES of New Mexico~ I challenge that statement. is opportune, but if I get into a general discussion of the tariff Mr. WATS ON of Indiana. I do not care whether the Sena tor here-which I like as well as I like anything in the world-I does or not; the appraiser has given me the facts. .shall be kept here the whole day discussing these matters, and Mr. JONES of New Mexico. The Senator from Indiana, I not get down to the thing that I came to present to the Senate know, is speaking in good faith, but I challenge the accuracy of .this particular morning, his statement, and I call for proof. My friend the Senator from North Dakota [Mr. McCuMBEB], l\Ir. WAT SON of Indiana. I can get the invoices right from ·the chairman of the committee, the other day presented a num-· the appraising office, if the Senator wants them. I can have ber of these articles. I shall present some this morning. Other them right here and furnish them, to show that the man who Senators from time to time will present other articles for the imported this gnn paid that price for it in dollars and cents, purpose of showing the cheapness of production abroad, and the and said so in the invoice itself; and that is all there is to it. further fact that the American p~ple, even under the present I know what I am talking about. Underwood-Simmons law, are not deriving the benefit from cheap Mr. JONES of New Mexico. Mr. President, the Senator's in- · goods that they ought to derive if they come in thus cheaply formation is undoubtedly inaccurate, because doubtless at the and without the imposition of a protective tariff rate. • time that importation was made such goods were always con­ For instance, I hold here a shotgun. [Exhibiting.] I do not tracted for in marks. The date of the purchase is important, know much about shotguns. I will hold it up this way. I do the date of contract is important, and the Senator is misled in not think it will go off, I will say to my friend from Nebraska. this, that under the law the cost of the article at the time of ex­ He suggests that I point it at the press gallery. No; I have portation is required to be taken as the price of the foreign too many friends up there. I do not want to shoot anybody. article, but they may have been contracted for a year previ­ Mr. SMITH. Mr. President, is the Senator going to use that ously, or six months previously, and the purchaser may have shotgun to reinforce bis argument? bought his foreign exchange at an entirely different price ; but l\lr. WATSON of Indiana. Absolutely; and I think it will if the Senator has doubtless taken the foreign exchange value my friend will patiently listen to me. of the foreign money at the date of the exportation of the Mr. President, this gun was manufactured in Germany. The article, and it may or may not mean the cost of the article as foreign cost was $1.80. measured in gold. I venture to assert that the Senator has Mr. JONES of New Mexico. Mr. President-­ not a single article upon the desk before him which was billed Mr. WATSON of Indiana. Wait until I finish. out by the foreign exporter in dollars and cents. l\1r. JONES of New Mexico. The Senator says the foreign Mr. WATS ON of Indiana. Mr. President, this is my speech, cost was $1.80. and not that of the Senator from New Mexico. We have lis­ l\1r. WATSON of Indiana. No; I made a mistake in that. I tened to him for months, and I am going to talk a little while in did not look at the figures right. The foreign cost was 90 cents. my own time, if my friend will permit me. The landed cost, including the duty, was $1.80. Mr. JONES of New Mexico. I hope the Senator will agree l\lr. JONES of New Mexico. The question of amount is that he has been very much enlightened by what I have said wholly immaterial to the point which I had in mind. Was the on different occasions. article bought for cents at all? Was the article contracted for Mr. WATSON of Indiana. Not a great deal, I will say to and purchased for so many cents? my friend from New Mexico, because he has been shooting wide 1\lr. WATSON of Indiana. Yes; measured in gold. of the mark, wider than I would shoot, probably, if I under­ l\Ir. JONES of New Mexico. Oh, Mr. President-- took to use this gun. The fact about it is that the importer Mr. WATSON of Indiana. That is exactly the way we b~y makes out his own invoice in dollars and cents. How can an abroad. importer make out an in voice in marks and get through the l\!r. JONES of New Mexico. That is entirely a different ques­ New York appraising office with it? He could not do it. He tion. makes it out in American money, in dollars and cents, and that l\Ir. WAT SON of Indiana. No; it is the same question. is exactly what the duty is levied on. That is true in this Mr. JONES of New Mexico. I will venture to assert that case, and in the case of every other article I shall present. the party who bought the gun did not pay 90 cents for it. This gun cost in Germany 90 cents in American money. The Mr. WATSON of Indiana. How much did he pay? • landed cost, including the duty, was $1.80. The retail price l\Ir. JONES of New Mexico. I do not know what he paid. was $15. The spread between the cost in Germany and the l\Ir. WATSON of Indiana. I agree with the Sena, tor on that. retail price was 1,566 per cent. The percentage of retail price Mr. JONES of New Mexico. And from what the Senator to landed cost was 733 per cent. It was bought from J. L. from Indiana says I apprehend he does not know. Galeb, of New York City, on Chambers Street, in May. Here is l\lr. WATSON of Indiana. I do know. the receipt taken over the counter for the money paid. There Mr. JONES of New Mexico. But I "Venture to assert that the is no escape from that proposition, from the beginning to contract for that gun was made for so many marks. the end. Mr. WAT SON of Indiana. Mr. President, that is not true at all. We have the actual invoice and the invoice price. 1\fr. SIMMONS. Mr. President, will the Senator permit a 1\Ir. JONES of New Mexico. Not in cents. question? l\!r . .WATSON of Indiana. This is the invoice price given by Mr. WATSON of Indiana. Yes; I will let the Senator ask the man that brought it here to the appraising officer. me a question. l\lr. JONES of New Mexico. Without impugning the motives Mr. SIMMONS. I would like to ask the Senator to give us or good intention or good faith of the Senator from Indiana, I the retail cost of a comparable gun produced in America. challenge his statement. I ask him to produce the invoice, and Mr. WATS ON of Indiana. That I can not do, and do not the Senator will find upon an examination ·Of the invoice that pretend to be able to do it. the goods were not billed out in. dollars and cents at all. I ask Mr. SIMMONS. Then let me ask the Senator another ques­ him to produce the invoice. tion. Does he think that the Yendor of that foreign-made gun Mr. WATSON of Indiana. I have not the invoice, but we could have obtained a price of $15 for it in the American market haYe the authority from the Secretary of the Treasury to get if a like American gun, produced in America, was not being sold the invoice if these figures are challenged. in the American market at retail for that much or more? Mr. JONES of New Mexico. The figures are challenged, and 1\1r. WATSON of Indiana. In this speech I am not going off I am challenging them upon the information, which has been into the wild realms of speculation to determine what might or uniform, that such purchases were made in marks and not in might not happen under other conditions than those which exist. dollars and cents at all. When Senators rise here and talk What I am showing absolutely is this: First, the cheapness of about these articles being purchased in Germany for so many production abroad, which is denied here; secondly, the immense cents it is misleading, and I call upon the Senator from Indiana, profit made by those profiteering importing houses, which ac­ before he proceeds further, to produce his invoices, and they will counts for the strength and intensity of their propaganda show that the articles were not purchased or contracted for in against this bill; thirdly, the influence they baYe as advertisers gold. over a few of our newspaper friends in the city of New York. ' 9140 CONGRESSIONAL RECORD-SEN.ATE. JUNE 22,

I come next to this clock, which .is a iery handsome work of Mr. WATSON of Indiana. No, Mr. President; where there art. [Exhibiting.) is an enormous spread between the two, if we put a tariff on, Mr. STANLEY. Mr. President:, before the Senator leaves that and if as a result of that tariff certain wages are paid~ and we gun-- have certain conversion costs of these articles in the United The VICE PRESIDENT. Does tbe Senator yield to the Sen­ States, then, because there is that enormous profit, they can ator from Kentucky? simply lower the price and ·undersell our people. If we could Mr. WATSON of Indiana. I will have to yield to my friend. be absolutely sure that they would never sell at a less price Mr. STANLEY. I want to ask the Senator a very brief ques­ than this, we would not be subjected to the same danger, though tion, and it will not require a11y argument. As I understan~ these importers would continue to make enormous profits ; but the present duty upon that gun is about 200 per cent of its cost, the big point is that if we were to fix rates which would permit is it not? ~ comparable watch of American make to be sold at that price Mr. WATSON of Indiana. The duty and the landed charges. m New Y:ork the result would be tbat the importer could get Mr. LODGE. And the freight? under that price, still reap an enormetus harvest, undersell us, Mr. WATSON of Indiana. The freight, insurance, and duty, and compel a reduction in American wages. 100 per cent. Mr. SIMMONS and Mr. JONES of New Mexico rose. :Mr. STANLEY. I thought the Senator said it was $1.80, and Mr. WATSON of Indiana. I decline to yield. I am going to that tbe gun cost 90 cents. finish this speech, if I can. Mr. WATSON of Indiana. I Jia.ve not the rate of percentage. Mr. SIMMONS. Will not the Senator yield, o that I may The Senator can look that up. ask him a question? l\!r. STANLEY. Has the Senator a statement of what the Mr. W ATSO~ of Indiana. I will yield to the Senator from duty is less the landing charge? North Carolina. I can not t"ery well avoid yielding to him· the Mr. WATSON of Indiana. No. I did not permit that to be ·Senator is the ranking member of the Committee on Fin~ce put in this statement, because I did not want to encumber the on th~ Democratic side. record with it. I do not care anything about it for the pur­ Mr. SIMMONS. I shall not abuse the courtesy of tbe Sen­ poses of my argument. ator. l\lr. STANLEY. Has the Senator any idea about how many Mr. WATSON of Indiana. I understand that; the Senator hundred per ce:nt would be adequate protection on that gun? never does. Mr. WATSON of Indiana. No. Mr. SIMMONS. I simply want to ask the Senator if he :Mr. STA....~LEY. The Senator does not know what he wants, will not give the prices charged for American-made article com­ then? parable to tho e he is now exhibiting and commenting on-what Mr. WATSON of Indiana. This gun comes in under the Un­ the Amer·ican manufacturer's price is? derwood Act now. Mr. WATSON of Indiana. I do not know. Mr. STAJ\TLEY. Exactly; but to what extent would the Sen­ Mr. SIMMONS. And what the retail price is of those par­ ator change the law in order to keep that gun out? How many ticular articles. thousand per cent does the Senator want? Mr. WATSON of Indiana. I do not know, I will say to my Mr. WATSON of Indiana. I will answer that question by friend, the price of the comparable American article. I did not and it by. The next article is this 400-day clock; that is, runs look it up, and for the purposes that I have in mind it does 400 days without being wound more than once. This clock was not make any difference. also made in Germany. The foreign cost was $1.70, American money. The landed cost, including the duty, was $2.21. The Mr. SU.lllONS. If the retailer is charging as much profit retail price was $30. The percentage of retail price to foreign upon the American manufactured article as he is charging upon wst was 1,661 per cent. Percentage of retail price to landed the foreign manufactured article, does not the Senator see that cost was 1,257 per cent. It was bought of Peter Korn, New that would be very important information? York City. There is the receipt for it. It was bought on the Mr. WATSON of Indiana. Oh, no. I am not assuming, as 18th day of 1\Iay for $30. my friend from North Carolina is assuming, that wages in the Mr. SIMMONS. What did the Senator say the landed cost United States are as low as they are in Germany or that pro­ duction costs in the United States are as low as they are in was? Germany. We know better than that. Mr. WATSON of Indiana. I did not say what the landed cost was. I said the landed cost including the duty was $2.21. Mr. SIMMONS. Why did not the Senator, when he was The next article to which I desire to call attention is this getting the foreign manufacturer's price with duty added, for watch, which was also made in Germany. [Exhibiting.] The the purpose of aiding the committee and the Senate in reach­ foreign cost was 17 cents. The landed cost, including the duty, ing a just conclusion about the matter, also get the American was 22.9 cents. The retail price was $1. The percentage of re­ manufacturer's price for the same article? tail price to foreign cost was 468 per cent. The percentage of Mr. WATSON of Indiana. Because that was far apart from retail price to landed cost was 335 per cent. It was bought of the thd'ught I had in mind, far apart from the thought that George Daly Co., New York, in May of this year. all had in mind when we brought these articles here. We want Mr. SIMMONS. What was the landed cost? to show the cheapness of production abroad. \Ve want to 1\Ir. WATSON of Indiana. The landed cost was 22.9 cents. show the enormous spread between the foreign production cost This belt which I hold in my hand [e~ibiting] was made in and the American selling price in order to show the enormous England. It is described as a " gent's cowhide belt." 'l'he for­ profits gotten by the importing houses, all of which shows their eign cost was 47.7 cents. The landed cost was 65 cents. The reason for establishing and spreading this enormous propa­ retail price was $2. The percentage of retail price to foreign ganda again.st the passage of the bill. cost was 319 per cent. The percentage of retail price to landed Mr. President, I next take up an aluminum sauce pot [ex­ cost was 208 per cent. It was bought of l\Iartin & Martin, New hibiting] which was made in Germany. The foreign cost was York, 618 Fifth Avenue, on the 22d day of this month. 29.7 cents; the landed cost, 4-0.3 cents; the retail price, $1.24. Mr. HITCHCOCK. lHr. President, will the Senator advise The percentage of retail price to foreign cost was 317 per cent ns whether these stores in which these purchases were made and the percentage of retail price to landed cost 208 per cent. were the importers? The article was bought of R.H. Macy & Co., of New York. on ~1r. WATSON of Indiana. Practically every store the name the 15th day of May and I have here the receipt taken fo1· the of which I have given the Senator was the importer. money paid over the counter. Mr. HITCHCOCK. Will the Senator be kind enongh here­ Mr. STANLEY. Mr. President-- a ft er to specify? Mr. WATSON of Indiana. Well, I will yield to my uood 1\Ir. WATSON of Indiana. I can not give the Senator that friend from Kentucky. information, because it was not furnished to me, but my under­ Mr. STANLEY. I appreci"" te the graciousness of the Senator standing is that practically every one of these stores is an im­ from Indiana. I realize that he prefer to go on with his speech porting store, and that in no instance was there more than one and I interrupt him with some hesitnncy, but I feel it is im­ transfer. so my information is, from the importing store to the portant that we i;:hould understand each other as we go along. retail store that sold it; but, so far as I am concerned, that Does the Senator know and can be advise the Senate as to the does not make any difference, because these figures show the source of the raw material from which that aluminum pot was tremendous spread between production cost and the retail sell­ made, whether in this country or in Germany? ing price in this country. Mr. WATSON of Indiana. It was made in Germany. Mr. HITCHCOCK. Does the Senator maintain that the sale Mr. STANLEY. Have they their own aluminum there? of these imported articles at these enormous profits tends to Does the Senator know and can the Senator advise me whether oestroy American industries which sell them at the same the raw material from which the pot was made was obtained prices? in Germany or in this country? 1922. CONGRESSIONAL ltECORD-SENA-ffE. 9141.

Mr. WATSON of Indiana. My understanding is that it was know whether they are or not. The foreign cost of this mag- obtained in Germany. I have not ·any doubt .about that. .nificent bird cage was $1.20; landed cost, including duty, $1.74; Mr. ·STANLEY. Does the Senator .know the cost -of :pro. .retail price, $11; percentage 'Of retail price to foreign cost, 817 ducing that aluminum pot in .this country? per cent; percentage of retail .price to landed cost, 532 per cent. l\f.r. WATSON of Indiana. I do not. Bought of E.W. Stoirregn .in New York, and here is the receipt Mr. -STANLEY. If it transpires .that the aluminum ,fr°'!11 :for $11 paid over the counter on the 24th day of last month. which tbat ;pot is made or ·the same .substance was made in ~ Next 1s a folding rule '{exhibiting] made In Germany. The country by one single corporation, one great concern making foreign cost was nine-tenths of 1 cent; the landed cost, includ­ practlcally all of it, filld if it transpires that there is ,no mat.e- ing duty, 11.4 cent.s; retail price, 25 cents; percentage of retail rial difference in the cost of production in this 1country and price to foreign cost, 177 per cent; percentage of retail price to ab.road, then this .high iprice ls the result of a monopoly in this landed cost, 120 i>er cent. Bought of the New York Central country or .it could not; get that 'Price for the retailed article. Supply Co., city of New York, on the 26th Of May, the receipt Mr. WAT-SON of Indiana.. Oh, Mr. ·President, the Senator being here for the money pa.id over the counter. is assuming something which i.s impossible of -existence; that, Next ls this electric hair dryer [exhibiting], for which my 'is to say, that it would not cost any more to manufacture 1that distinguished friend from Kentucky [Mr. STANLEY] unfortu· pot in the United States than it would in Germany. We ilmow nately has no use. The foreign cost of this article is $2:75;· better than that. I do not need to go into that question, be- the landed cost, ·including the duty, $3.57; the a-etail price, cause it has not any -bearing on the situation; that is to ·say, it $17.50; the percentage of retail price to foreign cost, 536 per throws no light on the subject I am discussing before the Sen- cent ; percentage of retail price to landed cost, 378 per cent. ate. The Senator can look up, if he pleases, the conversion cost Bought of the !Knickerbocker Electroleer Co., in New York, on in the United States and then nm.ke his comparisons. I do not the 26th day of May, the receipt being here attached. It will cru.·e anything about it. I know that if we were not to put on , :now be :1n order for our friends to talk -about how 'the women a tariff sufficiently high to protect the American manufacturer of the country are going to be oppressed by reason of the taritr as against his German competitor, where that .saucepan was we are imposing on various articles ·coming into this country made, and if we were to bring the American article u_p to that from abroad. price in the New York .maclret, the importers would immedi-: Mr. JOl\"ES of New Mexico. Mr. President, will the Senato? ately lower the rPnioe and undersell us because of the enol'mous 1 yield? I would just like to inquire something about the pur­ profit they are getting, and they would put our manufacturers chase. I imagine if some of the good women of the country to out of business quite the same as if we were to go_on under the whom the Senator has just referred were doing the purchasing freedom of the Underwood-Simmons law and give them a free ' there might not 'be _such -a large profit. hand. Mr. WATSON of Indiana. Mr. President, I am not golng to l\1r. STANLEY. Mr. President, I do not know that there is yield for any such purpose. Of course, I suppose if a woman such a difl'erence in the cost of production or I would not have goes to buy an article it will be sold to her at a lower 'Price asked rthe Sena.tor. I do know, for instance, taking the -pressed while if a man goes to ·buy the same article he will ·be charged glass in the clock on the desk before the Senator-that is, I a higher ptlce. If my friend is ·content with that kind ut have every reason to believe from the testimony of .glass- argument, I am ·quite content that lie shall make it, and I makers-that we can make a .Pressed-glass receiver as 'Chea_ply 'Will let tt pass without any further comment. .in this country as they ·can in Germany. We can make a tbottle Mr. JONES of New Mexico. If there is any -such grrurt as cheaply-- spread as that und .if the article Js not -::worth the price, if the l\Ir. W A"TSON of Indiana. Now, I do not want my friend to American comparable 'article is not selling at the same -price, inject a speech of t11at kind into the -midst of my speech, be- does not the Senator think the discriminating purchaser could cause it has not a thing in the w.nrld to do with the mrtter I 1 have done better? am discussing-not to say generally, but it has not a thing in Mr. WATSON -of Indiana. Mr. President, I am not -going oif the. world to do with the particular matter J: am now present- into any question about a discriminating purchaser. That has ing. I am discussing this aluminum sauce pot; I am discussing: not a thing on earth to do with the fundamental principle in­ the production cost abroad; I am discussing the enormous volved here. Whether or .not a man buys an article for what it profits made by profiteers in the United States; and I am ls worth or pays more than it is worth in a store on Pennsyl­ discussing 1the reason why .they have Injected themselves -into 1 ·vania Avenue, I do not care. That ·has not a thing .in the this propaganda against the tariff all over the country by men ; world to do with the fundamental question involved which I and by money. That is what I am discussing and that is all I am pres~ting here and to which there is no answer. I care care about. In other words, the whole thing is happening -at not about the cost of conversion in the United States. It does the present time under the Underwood-Simmons law, which is not apply, because, as I have stated over and over again, under practically a free-trade law out of which the people of the the Underwood law, now in existence ·and which Senators on United States get nothing and out of which we do not .hope to 'the other side o.f the Chamber are attempting to perpetuate ~et anything. with all the force they have and without change, these articles Mr. STANLEY. What I wish to ·call to the attention of the are coming in and these enormous profits are being made, and Senator is that unless he shows, as he proceeds, a difference in if our conversion costs were so great that the i>rices-- the cost of ,producing those articles here and abroad, he is Mr. JONES of New Mexi_co. Mr. President-- simply demonstrating the fact that these enormous price.a are M-r. WATSON of Indiana. That 'the prices of the foreign obtained from the consumer by virtue of the fact that the manu- product as I have said over and over again, were to equal tbe facturers and retailers in this country, in violation of every price that-- law against combinations and in restraint of trade and mo- Mr. JONES of New Mexico. .Mr. President-- · nopoly, are charging enormous prices and are practicing an .Mr. WATSON of Indiana. Will the Senator wait until I amazing extortion upon the body of the people, and the Senator finish my sentence? The Senator is so anxious to make a is proposing to shut away from them the only avenue for com- speech that he will not even wait until I, who have the 11.oor, petition. complete my sentences. 1\Ir. WATSON of Indiana. Now, Mr~ President, I knew that I have stated over and over again that .under the Underwood- my friend wanted to inject a free-trade speech into the body of Simmons law, which Senators on the other side of the aisle my remarks. I very good-naturedly permitted him to do that. aTe trying to perpetuate, these articles are coming in and that I .might take an hour to answer that argument. It would not these enormous ipro:fits are being made. If it really cost as take an hour to answer it, but it might take me an hour to con- much or if we put on a tariff that would make it cost as much vince my friend. It has not anything on earth to do with the 'for us to manufacture that article, what would the result be? question I am presenting, not the slightest in the world. I am The result would be that the foreigner would simply lower .his not going to be diverted further. .price, which he could do under these enormous profits, as 1: I wish next to take up a padlock [exhibiting]. Perhaps it shall show later on. ought to be put on the mouths of some of us. This padlock was Now, if my good friend from New Mexico will possess his made in Germany. The foreign cost was 19.6 cents. The landed soul ·in patience until a little later on, I shall undertake to cost, induding the duty, 25.8 cents; retail price, $1; pe1·centage answer one or two of his inquiries. of retail priee to foreign ·cost, 410 per cent ; percentage of .retail Mr. JONES of New Mexico. I am trying to be patient, but I price to Iancled cost, 288 per cent. Bought df Louis Wright, just wonder if the Senator would answer it now. New York, on the 26th of May, and I have here the receipt for Mr. WATSON of Indiana. No; not now. the money paid over the counter. Mr. JONES of ,New Mexico. It the Senator does not care to Next is a very ·beautiful bird cage Iexhibiting]. I feel like be interrupted-- holding an auction to see whether or not l could sell this iMr. WATSON of Indiana. I do .not care to 'be interrupted to my friend from Mississippi [Mr. HARRISON]. I am told the at this particular point. decorations on this bird cage are hand painted, I would not Mr. JONES of New Mexico. Very well 9142 CONGRESSIONAL RECORD-SENATE. JUNE 22,

l\fr. WATSON of Indiana. I have here [exhibiting] a bottle their number indefinitely and refer to dozens of different kinds of Apollinaris water, for which there is still some use in the of toys as to which the Senator from. Utah [M.r. SMOOT], who country. That was produced in Germany. The cost of it was understands this question probably better than anybody else, 2.4 cents; the landed cost, including the duty, was 5.7 cents; says it would take a thousand or fifteen hundred or even two the retail price, 24 cents; the spread between the foreign cost thousand per cent, if we imposed a direct rate on these imports and the retail price, 900 per cent; the spread between the of toys coming from abroad, in order to protect the American landed cost and the retail price, 336 per cent. It was bought manufacturer in the enjoyment of the American market. of Park & Tilford, New York, on the 31st day of May. Here The next article is unperfumed toilet soap [exhibiting]. It [exhibiting] i~ the receipt for it. comes from France. The foreign cost was 10 cents; the landed Mr. STANLEY. l'tlr. President, they must have been bell cost, including the duty, 13 cents; the. retail price, 60 cents; boys if they paid 24 cents for a split of Apollinaris. the percentage of retail price to foreign cost, 500 per cent; Mr. WATS ON of Indiana. They probably were not born in the percentage of the retail ·price to landed cost, 361 per cent. Kentucky, but I only know that they paid that price. Here The next is a toothbrush [exhibitin&"], which was made in [exhibiting] is the receipt for it, which ·I exhibit to my friend Japan. The foreign cost was 11.2 cents ; the landed cost, 15.5 from Kentucky. cents; the retail price, 50 cents; the percentage of retail price Mr. JONES of New Mexico. I should like to know if the to foreign cost, 346 per cent; and the percentage of retail price Senator from Indiana knows what profit was charged by the to 1anded cost, 221 per cent; and the receipt accompanies it. dealer in the other articles used in connection with Apollinaris It was bought of Louis K. Liggett, of New York, on the 6th day water? of June; Mr. WATSON of Indiana. That is a matter of ancient recol­ The next article is a string of amber beads [exhibiting], lection. which was produced in Gertnany. The foreign cost was 62 Mr. STANJ.... EY. Does the Senator from Indiana know what cent ; the landed cost, 76 cents; the retail price, $12.50; the we pay for the Apollinaris water? spread between the foreign cost and the retail price, 1,916 per Mr. WATSON of Indiana. I do not buy any. • cent; the spread between the landed cost and the retail price, Mr. STANLEY. What is the difference between the price 1,544 per cent. It was bought of Gimbel Bros. in New York, of Apollinaris water and White Rock water, which is supplied and the receipt accompanies the exhibit. in the Senate cloak room? Mr. President, on the 8th of May of last month there ap­ Mr. WATSON of Indiana. I do not know. I do not drink peared in the New York Times this advertisement: any. DO YOU WANT TO PAY MORE FOR YOUR LINENS? Mr. STANLEY. The Senator does not drink water? JAMES McCuTCHJDON & Co., Mr. WATSON of Indiana. No; not Apollfoaris water. I take Fifth Avenue, Thirty-fourth, and Thirty-fiftl~ Streets, my water straight. New York. Mr. President, I have here a package of cabbage seed. The I want to call the attention of those who honor me with their foreign cost of this article is 1.2 cents for one-quarter of an presence to this advertisement and to the situation whlch it ounce; the landed cost, including the duty, is 1.5 cents; the re­ unfolds- tail price is 35 cents ; the percentage of the retail price to To the p1,blic: the foreign cost is 2,891 per cent; the percentage of the retail The Senate committee has reported to the Senate the new tariff bill. price to the landed cost is 2,233 per cent. This was bought of This bill would raise the duties on linen from 30 a.nd 40 per cent to 50 and 60 rer cent; or, in other words, would almm~t double them. Stumpp & Walter, New York City. · Here [exhibiting] is the This will, o course, mean that the prices of these goods will have to receipt which was given for the purchase price. be advanced. Here [exhibiting] is a toy-union-stone building blocks. It By way of illustrntion- is very heavy; I shall not open the box, but sh1tll content my­ And I , call particular attention to thi~­ self with simply showing it. The blocks were made in Ger­ By way of illustration, a towel- many. The foreign cost was 21.7 cents; the landed cost, in­ ! have here [exhibiting] the very towel to which reference is cluding the duty, 35 cents; the retail price, $4; the percentage made-- of retail price to foreign cost, 1,743 per cent; the percentage of a towel 18 by 32 inches, which now sells at $6 per dozen, would have retail price to landed cost, 1,042 per cent. Bought of F. A. 0. to sell at $7.25 or $7.50 a dozen- Schwa_rz Co., Fifth Avenue and Thirty-first Street, on the 6th It is safe to say that if these men were selling it it would seil day of June, and the receipt accompanies it. for $7.50- Now I come to something that I know will excite tbe risibili­ under the new tariff. Handkerchiefs which to-day are selling around ties of my good friend from Mississippi [Mr. HARRISON], who $3.85 a dozen would have to sell for about $4.50 a dozen. does me the honor of listening to me. I want to call attention to that statement specifically in just Mr. HARRISON. Let the organ grinder proceed. a moment, but I desire first to read the remainder of the adver­ l\fr. WATSON of Indiana. I noticed yesterday that my friend tisement: came over here and very critically examined this toy monkey. If thi's change was going to protect the American workingman and American manufacturer, we would have nothing to say. But it does I saw him here during my absence from my desk. He exam­ not, for the simple reason that, except for the lower-end buck towels and ined it, and I thought perhaps he might be interested in the crashes there is practically no linen manufactured in the United States. addresses that William Jennings Bl'yan bad been making re­ More than 98 per cent of the linen you use comes from abroad. cently in which Mr. Bryan is attempting to convince tbe Ameri­ Now, listen to this, and if you have tears to shed prepare to can peop1e that there is nothing in the theory of ev

By wa.y of illustr tlon, a Plail:i huck face towel­ Mr. WA.TSO~ of Indiana: Does anybody pretend to say that The same towel I have here · [exhibiting]- if we do not 'Pllt on a protective duty these imports will destroy l8 by B2 inche , which at present sells in New York for $6 -per doz~n, the American production? would have to sell for $7.25 or $7.50 per dozen under the new tariff. Mr. HITCHCOCK. These outrageous profits which Mc­ There would be a pi:o1>0ttionate advance in the price of table napkins and tnbl cloths. cutcheon is making by charging high prices tend to injure American industry, do they? A proportionate advance, mark you. Mr. WAT SON of Indiana. Ah! That is not the point at all. If we take the case of handkerchiefs; we find that a dozen handker­ chiefs which to-day are being sold at retail for $3.85 per dozen would I wonder how often I will have to say that thing over and over have to be advanced to at least $4.50 per dozen, if the new r.ates in the again to get my friend to understand it. I am not going to tariff chednle went into effect. . say it over any more. One of the ·worst features of this schedule from the standpoint ~f. the consuming public is that the coarser, cheaper fabrics, each as linmgs Mr. HITCHCOCK. Does the Senator want M:cCutcheon to for overcoats, cheap towels, and cheap napki!ls, all are ~ade to pay a reduce those prices so as to wipe out the American production? duty of 60 per cent, whereas the· more expellSlve, finer articles pay only Mr. WATSON of Indiana. No ; that is not the point I haye 50 per cent. made at all. I want now briefly to devote a little attention to that argu­ Mr. SMOOT. Would it not be better to answer the question ment. What is it? in this way : That if McCutcbeon and these other importers The merchandise referred to in this advertisement consists will not reduce their prices, we want some of the profit they are of this towel and of the handkerchief. On hemstiched towels making to go into the Treasury of the United States? and handkerchiefs-get the phrase-the present rate is 35 per Mt\ WATSON of Indiana. The point of the whole business cent on towels and 40 per cent on handkerchiefs. The proposed is simply this: It would simply take away a part of these rate is 60 per cent on towels and handkerchiefs-an increase of enormous profits. Listen to me: If under the pending bill Mc­ 50 per cent on one and of practically 70 per cent on the other. cutcheon & Co. were willing to make from 30 to 33! per cent­ An investigation-and anybody can make the investigation-will and I have the exact figures here--they would not need to raise disclose these fact . What are they? the price; they could sell that handkerchief and that towel at In the case of the towels, on which the present rate of duty precisely the same price and yet make between 30 and 33} is 35 per cent, the foreign cost-this is the investigation and per cent. That they do not want to do; and their adve1·tise­ the result of it just like these others- were investigated-the ment, in order to arouse the American people, and especially foreign cost co~verted is $2.'76 a dozen; landing charges, 9.6 to excite the women, who are their purchasers, shows that they cents; duty, 35 per cent, or 96.6 cents. In other words, the want to take an unfair advantage of this duty in order to con­ landed cost under the present tariff is $3.82 a dozen. I pause vince the people that they are about to be robbed, when it is here long enough to say that the selling price at this time, l\IcCutcheon & Co. that are doing the robbing, and not the according to their own advertisement, is $6, so that they get at tariff. the present time 80 per cent of an increase; but that is not what Mr. HITCHCOCK. I admit that if the Senn.tor's figures are I want to stress. correct; but I should like to ask the Senat.or this question: l call your attention to the fact that under our proposed rate What becomes of the argument which he hns made here so they will pay the same in the foreign country as they do now, frequently and so eloquently that under the present tariff a.ct $2.76. The landing charges will be precisely the same, 9.6 cents. these foreign imports of goods made by pauper labor are flood­ Only the duty would be increased from 35 to 60 per cent, and ing the country and tending to destroy American industry? that increase in duty would be the difference between 96 cents Mr. WATSON of Indiana. I can not go into that. Tha~ and $1.65, or 70 cents. In other words, the landed cost of the means a whole tariff speech. My friend gets up and asks me towel at the i>resent time is $3.82 a dozen, and under the pro­ to make a whole tariff speech here. posed bill it would be $4.51 per dozen, or an increase of 70 Mr. HITCHCOCK. Is not the Senator's present speeeh an- cents; and yet they squarely assert in this advertisement that swering the other speeches he has made here? if this new tariff is put on they will be compelled to increase Mr. WATSON of Indiana. No, no. ' the price $1.50 a dozen. There is no increase in the foreign l\Ir. STANLEY. Mr. President-- cost, and there is nQ increase in the landed cost, and the only Mr. WATSON of Indiana. Let me go on and .finish this, and increase is in the duty, and the increase in the duty is only then I will listen t.o my friend. 70 cents, and yet in this advertisement they squarely say to What is the real fact about the whole business? The real their people that it will become necessary for them to increase fact is that on the great body of linens imported into this the price of this towel '$1.50 a dozen. country we raise the duty only from 50 to 60 per cent. Here So much for the towel. are two hemstitched towels. Anybody can look at these who At the present time the rate on the handkerchief is 4-0 per cares to. They were made in Ireland. The foreign cost was cent. In other words, a dozen abroad cost $1.76; the landing $14.48 a dozen. The landed cost, including the duty, was $19.90 charges a;re 8.8 cents ; the duty is 40 per cent, amounting to 70.4 a dozen. The retail price was $65 a dozen. The percentage of cents. The landed cost is $2.55 under the existing law. They retail price to foreign cost was 349 per cent. The percentage sell the handkerchiefs nt .$3.85 a dozen, according to this adver­ of retail price to landed cost was 227 -per cent. These were tisement, which i about 70 per cent increase now; but the rate bought of whom? James Mccutcheon & Co. There is the re­ would be increased to 60 per cent by our bill. The foreign cost ceipt for the money, the $65, taken across their counter, and will be the same, $1.76; the landing charge is the same, 8.8 yet listen to this camouflage that they throw about this : - cents; and the duty would be increased how much 'l The duty • We have been making strenuous elrorts in the last year and a half would be increased but 35 cents. That is to say, the only dif­ to reduce the prices <>f all of our goods and are most distressed at the rerence in the landed cost of a dozen of the handkerchiefs thought of having to advance them at a time like this. would be the difference between $2.55 now and $2.90, or 35 And they take this tariff that we propose to put on the towels cents ; and yet they squarely assert in this advertisement which and on the handkerchiefs as a basis for the whole argument on I have read to you that it will be necessary for them to increase the linen question, but they fail to mention the other linens the price of the handkerchiefs from $3.85 to $4.50, or '65 cents in any advertisement that they have ever put o.ut to the a dozen. So that, according to their own advertisement, they American people. They d-0 not say anything about these fine would take advantage of this duty to charge a far greater price tablecloths. They do not say anything about these superior than the circumstances warrant or the conditions permit. They qualities ot linen. They do not say anything about the dam­ are direct importers-J. Mccutcheon & Co. asks-not at all. They mention only the towels and the Mr. SMOOT. Mr. President, I will say that they are the handkerchiefs, and on those they propose, according to their largest importers in America. In fact, they virtually control own advertisement, to increase the price outrageously without the linen .market of the United State . justification and without warrant. ?tI.r. HITCHCOCK. Mr. President, will the Senator advise Here are some more towels. So far as I know and the figures us whether comparable articles are made in this country? show, they .are of a che,per qllillity. The foreign cost was $3.52 l\Ir. WAT SON of Indinna. They are; yes. a · dozen. The landed cost was $4.87 a dozen. The retail price Mr. HITCHCOCK. They are sold in competition with the was $24 a dozen. The percentage of retail price to foreign cost American product? was 582 Der cent. The percentage of retail price to landed cost Mr. WATSON of Indiana. Why, certainly. was 393 per cent. They were bought of whom? James Mc­ l\Ir. HITCHCOCK. And what the Senator is complaining of Outcheon & Oo., New York, and there is the receipt for the is that they do not reduce the price so as to destroy the Ameri­ money paid when the article was bought of tbe men who say : can production? We have been making strenuous efforts in the la t yea.r and a half to Mr. WATSON of Indiana. My contention is that, without a reduce the prices of all of our goods, and are most distressed at the protective duty, they would destroy the American production. thought of having to advance them at a time like this. There is not any doubt in the world about it. Put out as an advertisement-what f-Oi·? For the purpose of Mr. HITCHCOCK. By charging a high price? arousing the American public against this bill, when they them- 9144 CONGRESSIONAL RECORD-SENATE. JUNE 22, selves in their own language admit that they intend to take an $9.05. Let our friends come over and look at it. The landed unfair advantage of these rates to boost the price and cheat cost, including the duty, was $12.67. The retail price was $22. their customers. The percentage of the retail price to the foreign cost was 143 What is the next? per cent. The percentage of the retail price to landed cost was Mr. STANLEY. Mr. President, if the Senator will yield at 73 per cent. Then there are the napkins to match. What are that point-- they? Country of manufacture, Scotland. Hemstitched. For­ Mr. WATSON of Indiana. No ; not until I get through this. eign cost, $13.27 a dozen. Landed cost, including the duty, ·Mr. STANLEY. Just one suggestion; I think I catch the $18.57. Retail price, $32. Percentage of retail price to foreign point of the Senator. The whole question has resolved itself cost, 141 per cent. Percentage of retail price to landed cost, 65 into who shall do the profiteering. per cent. How modest they are to make but 65 per cent on Mr. WATSON of Indiana. No; not at all. I do not agree this. Here is the bill, and here is the receipt. So much for with the Senator at all on that proposition. I deny that the all that. American manufacturer in the main is a profiteer, and I deny So these prices were charged by the man who, in his adver­ that the American wholesaler in the main is a profiteer, and I tisement, said, "We are most distressed at the thought of hav­ deny that the America]) retailer in the main is a profiteer. Why ing to advance these prices at a time like this." .And under his is it that whenever we have a tariff question or any other ques­ own statement he advances them far more than the figures tion up, our friends on the other side inveigh against business justify and the facts warrant. and criticize business men? We are always led to believe that I think that if facts can prove anything, or figures can demon- any man who is in business is a thief; that any man who tries . strate any proposition, I have shown beyond the peradventure to carry on an industry in the United States is a scoundrel; of a doubt to any man who wants to know, first, with respect that there is . something wrong with. his heart and something to the cost of production abroad, that its very cheapne s is perverted about his soul. Those things I absolutely deny. something with which we can not compete, and in the absence These business men have made possible the prosperity of this of a protective tariff American industry would be undermined country. They have been the leaders along business lines. and destroyed. That is my contention. You have to have pro­ They have not only furnished the capital to develop our indus­ tection, and you can not build up industry in any other way. tries and to utilize our natural resources, but they have em­ In the second place, I have shown the enormous profits these ployed labor. They have taken that labor into their confidence importing houses are making on these things. That is why from time to time, until to-day the laboring people in the United they send out these petitions to their retailers. That is why States, under a Republican policy always, have come to be the they are putting all these advertisements in the newspapers. best-paid and the best-fed and the best-found and the best­ Will the great New York Times, one of the ablest and strongest clothed and the best-educated laboring men, and the most moral, papers published and edited in all the world, publish the truth with more of comfort in their American homes and more of hope about these things? No; it will not. Why? Because James in their American hearts than any laboring men who ever used Mccutcheon & Co. will not permit them to do it. Tbat is their hands in toil on earth before. precisely the reason. Yet you are always undertaking to make us believe that the Only recently, on June 13, this very month, the American men who have aC

The PRESIDING OFFICER. Sixty Senators have answer~­ There never was a more brazen attempt to injure a man polit­ to their names. A quorum is present. ically, to- use the power of a governmental institution to intimi­ Mr. HEFLIN. Will the Senator yield to me to call up a reso· date and hurt a United States Senator, made by anybody or any lution? inatitu tion. Mr. SIMl\fONS. I yield if it does not lead to any discussion. I offered the resolution, and I objected to the resolution going DISTRIBUTION OF SPEECHES BY FEDERAL RESERVE BANKS. to the Senate Committee on Banking and Currency. I said tl~at it would never be reported, and it has not been reported Mr. HEFLIN. I ask unanimous consent for the present con­ from that good day to this. No action has·ever been had upon sideration of Senate Resolution 308, which I ask may be read. it, and in order to get the information that I sought I offered The PRESIDING OFFICER. The resolution will be read for another resolution that would save the Government expense the information of the Senate. by calling on the bank at Atlanta to give in writing the in­ The ASSISTANT SECRETARY. The Senator from Alabama [Mr. formation that I wanted, to wit: To whom did they send the HEFLIN] asks unanimous consent for the present consideration speech? If they wrote a letter, to send a copy of the letter. of the resolution (S. Res. 308), submitted by him yesterday, as At whose expense did they publish and distribute the speech? follows: How many did they distribute and at what cost? They gave Whereas it has been charged upon the floor of the Senate that each that information to me. I am now asking that the other and every one of the regional Federal reserve banks of the United regi(lhal banks do the same thing. The Senator from Con­ States has had printed and distributed at its own expense a speech de­ 'livered in the Senate by Senator GLASS, of Virginia, in which the posi­ necticut [l\fr. McLEAN], who is always on guard, always to the tion of Senator HEFLIN on the deflation policy of the Federal Reserve rescue when any Senator undertakes to have justice done to Board was assailed and criticized: Therefore be it the masses of the people who are entitled to have this money ·Resolved, That all of said Federal reserve banks, except the Federal Reserve Bank of Atlanta, which has already reported to the Senate, institution properly governed., now moves to refer my resolu~ be, and they are hereby, requested, respectively, to furnish to the Senate tion of to-day to the death chamber of his committee, where in writing a list of the names and addresses of citizens to whom said my other resolution lies buried. speech was sent, and all information in their possession, respectively, called for in the following questions : Mr. McLEAN. My recollection is that some committee was 1. At whose instance was the speech in question of Senator GLASS appointed to consider the resolution to which the Senator sent out? 2. At whose expense was said speech printed and distributed? refers. I do not know whether the Senator has requested any 3. How was the fund provided and how many copies of said speech hearings or has taken any steps to get a report or not. My were sent out and how much money was expended in printing and dis­ recollection is that in the absence of any report from the com­ tributing said speech? 4. Did any member of the Federal Reserve Board suggest the printing mittee, the information desired by the Senator has been sent or distribution of the said speech? to the Senate. 5. Was any letter sent out with said speech? If so, attach a copy Mr. HEFLIN. By the Atlanta bank? to your report. Mr. McLEAN. Yes. Mr. HEFLIN. Mr. President, I am asking unanimous consent Mr. HEFLIN. Without expense to the Government, without for the immediate consideration of the resolution. It is a reso­ costing the Government one cent. Under the :first resolution it lution I called up last night, and the Senator from Connecticut might have cost a few dollars to have them come up here, if [Mr. McLEAN] asked that it go over until this morning. I ever you reported the resolution, so I decided to do it the called it up a little while ago, when the Senator from· Virginia other way and to get around the committee, to which I never [Mr. Guss] was here and made no objection, but the Senator wanted my resolution sent in the first place. from Utah [Mr. SMOOT] objected temporarily. I now ask for Mr. McLEAN. It does not seem to me the Senator has any the immediate consideration of the resolution. cause for complaint if he has the information on his previous Mr. McLEAN. Mr. President-- resolution. The PRESIDING OFFICER (Mr. CAPPER in the chair). Mr. HEFLIN. From the one bank. Does the Senator from Alabama yield to the Senator from Con­ Mr. McLEAN. Very likely he can get it in so far as this necticut? resolution is concerned. All I ask is that the proceedings be Mr. HEFLIN. I yield. regular. It is unusual to ask action on a resolution of this sort Mr. McLEAN. I think the resolution ought to go to the com­ by unanimous consent. It involves a good deal-- mittee. I do not know that there is any serious objection to it, Mr. HEFLIN. I know it does. but its ramifications are pretty wide, and what it involves I do Mr. McLEAN. It may involve a good deal of expense. not know. I move that the resolution be referred to the Com­ Mr. HEFLIN. I realize that it is a difficult matter to get mittee on Banking and Currency. unanimous consent wherever the Money Trust is involved. Mr. HEFLIN. Mr. President, the Senator from North Caro­ Mr. McLEAN. I will assure the Senator that if the resolu­ lina yielded to me, and I do not want to take up any of his tion goes to the Committee on Banking and Currency, I shall time. appoint a subcommittee to consider it. I do not know that there l\Ir. SIMMONS. I will yield the floor to the Senator if be is any objection to the resolution, but I do object to this multipli­ will permit me just a moment. I had intended to discuss some cation of resolutions on the part of the Senator from Alabama of the observations made by my good friend the Senator from and insisting that they be passed by the Senate when no one is Indiana [Mr. WATSON], but I think as this is the lunch hour I here. I shall insist on my motion that the resolution be re­ shall wait until a little later, perhaps half-past 2 or 3 o'clock, ferred to the Committee on Banking and Currency. before I proceed. Mr. HEFLIN. I am going to be heard on the Senator's Mr. HEFLIN. Mr. President, in January of this year the motion at length. I propose to have the country know each Senator from Virginia [Mr. GLASS] made a speech of several day and all the time while I am here just what transpires and hours' length, and my name was mentioned several times in that some of the situation about the motives back of the thing. This speech. Speeches that I had rpa

the s li,,,<>irt-est degree any 'Part OT -pnrcel. The Senator from contlliins misrepresentations and false statements that is a Georgia [Mr. WtA.TSON] calls both Senatovs to :order. He is very different proposition. When the Senator shari ha.ire with­ 11.bsolutely within .his tights when he does that. I insist that the drawn that statement I shall very gladly withdraw my retort. call to order by the Senator 'from Georgia shall be immediately · l\fr. HEFLIN. Mr. President, I did not use the language that -obeyed in the wol'ds of the rnie of the Senate tn order that we the sp~ch <>f the Senator from Virginia was full -0f misrep­ rmay not turn this body into a fighting body. We have hitherto resentations, as .I recall, but I said that it contained inaccurate been noncombative. and incon·ect statements. T he PRESIDING OFFICER. What is the request of the Mr. MOSES. Mr. P1resident, I ask that the reporter's notes Senator? :nay 'be Tead in order that we may lmow exactly what ls the Mr. WILLIAMS. I insist that the point of order mnde by the issue in controversy. Senator from Georgia is well made and ought to be obeyed. The PRESIDING OFFICER.. The notes of the reporter will l\lr.. FRELINGHUYSEN. l\IT. President, I ask that the rule be read. be read. The Assistant Secretary read from the transcript of the re­ The PRESIDING OFFIOER. The Secretary will read the porter's notes as follows : .rule. The ASSISTANT SECRETARY. Rule XIX of the Senate, be­ . Mr. !IEFLIN. I am going to be beard on the Senator's motion at length. I ·propose to have the country know each ·day and an the ginning with paragraph 2, reads as follows : time while I ·a~ l!ere just what transpues and some of the situations z. No Senator in debate shall. 'dil"ectly or indirectly, by any form of a1-out the .motives back of the thing. This is a Government of the words impute to another Se.nator or to other Senators any conduct nr people. What I ask is simply a -courtesy to myself. 1 &m involved, motive unworthy or unb~ming a Senator. :f~~t?i. by a speech full of inaccurate statements and inaccurate 3. No Senator in debate &hall -refei· offensively to any State of the Union. . :Mr, GLAs.s. Mr. President, I Cleny absolutely thnt there ls a single 4. If any Senator, ln speaking or otherw1se, transgress the rule~ inaccux:acy m the speech to which the Senator -refers. I am getting of t he Senate, the Presiding Officer s.l:lall, or any Senat or may, call him Liba~~ of these ntteI'ly !alse accusations by the Serurtor from to order ; and when a Senator sh.all be called to order be :shall sit dow.n,. and Jiot proceed without leave of the Senate, which, if granted, Mr. HEFLIN. If the Eenator charges me With making a false state­ shall be upon motion that he be allowed i:o proceed in order, "\'\"hlcb ment he is a liar. motion shall be :determined without debate. M!· Guss. I charge b±m with i.t; I charge that he is repeatedly 5. If a Senator be called to ·order fol' words spoken in debate, upon makmg false statements. th demand of t h e Senator or of !l.DY other Senator the objectionable Mr. WATSON of Georgia. Mr. Prestdent, 1 call both Senators to order. wol·ds shall be taken down in writing, and read at the table for the in­ lllr. GLASS. And the Senator's blackguardism 'does not help him any. formation uf the Senate. 111r. W"1TSON of Georgia. I call ootb Senators to order. ?iir. H EFLIN. I will not permit the Senator to insult me Mr. WILLIAMS. I insist -upon 'the observance of the rule. Mr. WATSON of Georgia. 1I can both Senat-0rs to order.. Mr. WATSON of Georgia. l\lr. President, I move th~ the Sen­ ator from Alabama be permitted to proceed in order. Mr. HEFLIN. 1\lr. President, the notes show that I never Mr. WILLIAMS. Mr. President, I shall insist upon the ob- used the words "false representations " or " misrepresenta­ servance of the i·u1e. tio~s." I said "inaccurate statements," "incorrect statements," Mr. EDGE. I s uggest t he absence of a qnorm:n. .but according to the :notes l never used any offenstve 1language The PRESIDING OFFIG1ER. The Secretary will call the roll. until the Senator from Virginia said what he did. The reading ·cleT-k called the ro'J.1, and 'the following Senators Mr. GLA.SS. Mr. President, it is perfectly evident that I was answered to their names : mistaken in my supposition that the Sena.tor accused me of mis­ Borah H:i.te :Mccumber SbeppaTd representation. .He seems to have accused me of inacc.uracy, Broussard HaITeld McKellar Shortridge w.hich, of course, 1 deny, but it is not ofEensive to a enator t~ .Brrn;nm Harris McKinley Smith say that he is inaccurate in a statement. Therefor~ I very Cameron Harri on McLean Smoot Capper Heflin Moses Spencer greatly deplore that I was beh·a,yed into a :clutra:cterization such Cara way Hitchcock Nel.Son ~w.nsend as I made, and, of course, I am willing to withdraw it. Cw tis Johnson Newberry ft'r~mell Mr. HEFLIN. N'Ow, Mr. President, I was going on to say to Dial Jones, N. Mex. Nicbolson Wadsworth 'du Pont Jones, Wash. Norbeck Wals.h. Ma.,s. the Senator from Connecticut [l\Ir. McLEAN] that when my Etlge Kellogg Oddie ·w.ru·ren resolution was referred to the Committee on Banking and Our­ Erm;t Ladd Overman Wat-son, Ga. .rency I thought !it .shcmld not go there, in the .:first place, because Frunce La Follette Pepper Watson, Ind. Frelinghuysen Lenroot PO"lildexter ·Williams there w.as a conu·oversy involving myself and a member of that Glai:;s Lodge Pomerene Willis committee, namely, the ~enator from Virginia [Mr. GLA.s.s]; I Gooding McCormick Rawson thought :the open Senate .ought to act rupon it, 8lld I made that The P.RESIDI:NG -OFFICER. F'rrts-niu~ Senators l.tave an­ request; but, nevertheless, the Tesolution was refeued t--0 the swered ito their names.; a 'vernmerit tand 'operating under law has Mr. HEFLIN. Mr. President, I want to w.ithdraw the lan­ got no right to :go into politics and circulate that speech at the guage that I .used a little while a-go. This is not the place to expense of the bank's funds, some of which would go to the use lU14:,-ouage of that kind. I used the expression that the Government if they were not used for that purpose. Thm is the speech of the Senator from Vlrginia was full of inaccurate and position that I take. !incorrect ·statements. I d'o not think that -would eail for a This .speech was circulated in my State, and circulated statement from him sueh as did ·come from him. I was pro­ amongst bankers, I .repeat, who have got to go to the Federal voked that he did use that :language, and I desire to withdraw Reserve Bank in Atlanta to get money, and a letter was written what I said. to them asking, " What was :your opinion on this subject before Mr. WILLI.A.MS. Mr. r .resident, if the Senator will pardon you read the speech of the Senator from Virginia, and what is me, the .Senator could hnve -used the expression "inaccurate and your opinion of it .now? " I was the Senator assailed-named incottect statements," and ·that would have been all right, but and assailed-in that speech. ':Chat speech was being circulated I think he said "inaccurate and false statements." He .ought in my State, and the letter was being written to people whom to withdraw rthe word ·~false." -I -represent in this •body and to whom I am responsible. l\fr. HEFLIN. I do not think that l used the word "false'" I asked the Senate to let us inve... tig.ate that hank -down there, until after the Senator from Virginia bad said what he did. ·and the Senator from Connecticut opposed that courS'e, and l\lr. WILLIAMS. The Senator used i:hat word, and that was this resolution was Teferi·e

Then I introduced a re olution calling on the bank at Atlanta that assails my position and ask them to do me a favor. Con­ to give the mailing list, the people to whom it sent that speech, gress created these banks. It created the board; and the Fed­ the number that it sent out, and the cost incurred in sending it eral Reserve Bank at Atlanta said, in response to the question out. I found that they circulated 6,500 copies of that speech. as to who suggested that they send out the Glass speech, that The original print cost twenty-odd dollars a thousand, and each the Federal Reserve Board advised them that it was available. additional thousand cost $15. It cost something to address Of course the board suggested it. These banks were created by them and send them out, so there is considerable expense in­ Congress. They are operating under the law enacted by Con­ curred in it. That was done, that bank reported under my reso­ gress. \Vhy can not the Senate, in response to the request of a lution passed by the Senate, without a cent of cost to the Senator, call on that bank, call on each and every one of those Government. banks, to furnish certain information to it when they have cir­ Then I offered this resolution calling upon each and every culated a speech, it makes no difference whose it is, that bit­ one of the other Federal reserve banks, 11 of them, operating terly assails the position of another Senator, a Member of the under the law, Government institutions, and the Senator from country's lawmaking \>Ody. · Connedicut objects to the immediate consideration of it and I am utterly astounded that any Senator should object. wants it referred to the Committee on Banking and Currency. Would I object if a speech of mine criticizing the position of I, a Senator in this body, am assailed in that speech. My posi­ any other Senator was being sent out in his State and in other tion is cl'iticized. I do not object to that if people who read States by a banking institution, and he should want the names that speech can read mine also. I am willing for each one of of those to whom it was sent in order to send his, so that he tllem to pa s judgment upon the case, as thousands have, and could answer mine? Would I oppose it? Why, no ; I would have written to me their judgment, as doubtless some of them not oppose it. The Senator from Virginia [Mr. GLASS] has not have to the Senator from Virginia. There are two sides to it. openly opposed it. I have heard nothing said from him uporr I want the same people who got bis speech to get my speech; the floor in opposition to this resolution. and as a Senator in this body I ask other Senators, after telling Mr. McLEAN. l\Ir. President, if the Senator will yield-­ them the situation, to pass this resolution and to give me this Mr. HEFLIN. I yield to the Senator. information arnl let this body have that information, and the l\lr. McLEAN. I want to say to the Senator from Alabama Senator from Connecticut persists in sending it to his commit­ that I would never think of introducing in the Senate of the tee, where I

- 9148 CONGRESSIONAL RECORD-SENATE. JUNE 22,

personal to try to get it in the ordinary way before they eome This is the simple proposition: The Federal reserve ·system, a in here and ask for the passage of a resolution by the Senate. great banking institution, which I helped to establish, the · Tbe motive of the Senator is immaterial to me. greatest banking institution in all the world, has never been I have no doubt that it is a good one, and I am always glad crltlcized by me in one word. I have condemned the mal­ to listen to him when he attacks the banks, ·because 1! the banks administration of the system. I have condemned the Federal deserve ·punishment I want them to get it. I do not believe in Reserve Board. There was a speech circulated which assailed attacking the banks unless they deserve it; a:nd it is far that and criticized my 1>QSition, and I asked that the list of those reason that I think this resolution, like other resolutions, to whom it was sent be sent to the Senate, in order that I should go to the committee in the orderly way. ·might have the names, and send my speech to those people, I will say to the Senator that I shall continue to object to in order that they might read both sides and decide for them­ the consideration of this resolution, and I shall insist on my selves, in this free Republic of the west. I thought that was a motion that it go to the committee. simple request and a fair one. I did not belieYe that anybody l\Ir. HEFLIN. Mr. President, I never criticize a bank unless would oppose it. :r think that bank is doing wrong. I criticized the defiation 1 wanted to know, and I wanted the Senate to know and the policy of the Federal Reserve Board because I believe it is a public to know, who suggested the sending out of the speech burning shame a:nd a crime against the eountry.. I have a right of the Senator from Virginia, how much it cost, who paid for to criticize it; and I have condemned the conduct of these it, and to whom it was sent. Anything wrong about that? banks which have circulated one Senator's speech against an­ Mr. SHEPPARD. I wish to make a pa.l'liamentary inquiry. other Senator witbout giving him the opportunity to send his. The PRESIDING OFFICER. The Senator will state his I do not ask any favors of them. I want the Congress which Inquiry. created them to let them know that we have a scrutinizing eye :Mr. SHEPPARD. How many times can a resolution go over on them always, and that they ean not meddle in politics and on objection? Did not this resolution go over yesterday on ob­ cireulate one Sena.tor's speech against the position of another jection? Senator in order to sustain their position. Why should I be The PRESIDING OFFICER. It did. put in the attitude of writing to these banks which have taken Mr. SHEPPARD. Has not the. Senator now a right to move that stand against me simply because I dared to stand in my that it be taken up? place and criticize the policy of deflation? - The PRESIDING· OFFICER. The resolution is now before The feeling that these officers have exhibited in circulating the Senate. the speech shows that they we-re trying to answer my. position . Mr. LE.NROOT. Mr. President, I make the point of o.rder and injnre me politically if they could. I think that is clearly that it can not be before the Senate. We are in the same e~ tal1llshed in the minds of all fair-minded people. legislative day, and under the rules of the Senate that resolu­ The Senator from Connecticut voted against the consideration tion can not come before the Senate except by unanimous con­ of ·my resolution to investigate a Federal reserve bank close to sent until we have bad an adjournment. my State, which was circulating this speech in my State The PRESIDING OFFICER. The Senator from Alabama amongst the people I represent in part in this body. The Sena­ rose and asked unanimous consent, which was granted; the tor had his way then, and he would not permit the Senate to resolution has been read and a motion has been made against act upon that 1·esolution, though the situation involved me it. The resolution is before the Senate. perNonally. The resolution went to the Senator's committee, Mr. LEl~OOT. The motion to refer has been withdrawn and there it has remained ever since, and he is now asking me and objection was made to immediate consideration. t-o ·end this resolution to the same committee. Mr. Pre51d(!n.t, The PRESIDING OFFICER. The motion was made, and it I repeat I do not want it to go to that committee. could not have been made unless the. resolution was before the Mr. McLEA...~. Mr. P1"esident, the Senator is again mis­ Senate. taken. I was not present when the vote was taken on that Mr. LENROOT. It could be made by unanimous consent. resolution. The resolution was not before the Senate. The record will l\fr. HEFLIN. We'll, did the Senator favor it going to his show, I am sure, that unanimous consent was not given for committee? immediate consideration of the resolution, but, in fact, it was Ur. McLEAN. That is another matter. objected to. l\fr. HEFLIN. Yes; that is another matter. Mr. WADS WORTH. May I inquire what becomes of the un­ Mr. McLEAl~. I wish the Senator would try to be accurate finished business if this resolution is now before the Senate? ln his aspersions. • Mr. SMOOT. It would displace the tariff bill as the un· Mr. HEFLIN. I ask the Senator now if he did not approve finished business. the course which sent it to the committee? Mr. LENROOT. Unanimous consent bas been objected to, l\Ir. McLEAN. The Senator said I voted for it. so it could not be before the Senate. l\1r. HEFLIN. I thought the Senator was here and voted The PRESIDING OFFICER. There was n-0 objection made at for it. tile time the resolution was read. A motion was made on it, an•l ~Ir. McLEAN. l\!y recollection is that I was not present. the resolution has been read. Mr. HEFLIN. I ask the Senator now if he did not approve Mr. LENROOT. But the motion has been withdrawn. It the course which sent it to his committee? was a motion to refer. When the :m-0tion was withdrawn that Mr. McLEAN. very likely if I had been here I should have left the resolution exactly where it was before any request had voted to send it to the committee, because I believe that should been made concerning it. be done with all such resolutions. The PRESIDING OFFICER. How could the motion have Mr. HEFLIN. Mr. President, if any Senator on the other been made unless the resolution were before the Senate? side were irrrnlYed as I was involved and am involved and Mr. SMOOT. The only way the resolution could be before the Should make a request for unanimous consent such as I made Senate would be by unanimous consent or on a motion to take I would fa var it 1l.nd help him to get it through, but an effort it up. The Chair says there was no objection. Perhaps there is made to keep me from getting information regarding my own was no objection at the time-I can not say, because I was not State and myself, a Senat<>r in this body, fighting in his place in the Chamber-but the motion to refer it has been with­ for what he believes is right, as I have a right to d-0. What drawn and there is no unanimous-consent agreement for the ts it back of this spirited move block action on my resolution 1 to consideration of it. The 'Senator from Connecticut may satisfy his own conscience; Mr. LENROOT. Objection was made by the Senator froin that may not be hard to do-- Mr. McLEAN. Mr. President, I withdraw my motion that Connecticut. the resolution be referred to the Committee on Banking and Mr. SMOOT. If the Chair's ruling is correct, then the unfin­ Currency and I object to its Immediate con idera.tion. ished busine swill be displaced. No vote was taken, and some Mr. HEFLIN. Does the Senator objeet to the present eon­ Senator certainly would have objected to the tariff bill being sideration of the resolution? displaced. Not only that, but when a resolution is presented Mr. McLEAN. ·1 do. and a request is made for its immediate consideration anyone The PRESIDING OFFICER. The Senator from Connecticnt in the Senate has a perfect right to object at any time before withdraws his motion, but objects to the immediate considera­ the resolution iB passed. tion of th~ resolntion. Mr. SHEPPARD. Let me say to the Senator from Utah that l\!r. HEFLIN. Mr. President, I thought the Senator would instead of an objection being made a motion was made to refer object. I like to have the truth of a situation come out. I t:he resolution. want the exact position of men in this body on pubUc questions to Mr. Sl\fOOT. That has been withdrawn. be known. The people have a right to know, and I have a right Mr. HEFLIN. And the objection was renewed by the Sena­ to express my opinion about the situation which it involves. tor from Ooruiecticut. 1922. OONG-RESSION .AL RECORD-SENATE~ 9149

::\111. LENROOT. That is the record. lifeblood of business. It holds its hand on the currency system M1~ HEFLIN. And the Senator is of the opinion that that and on the credit system of the country, and that trust; is prevents immediate consideration of it? stalking about the dool"' of every kind 1 of business in the Re­ · Mr. LENROOT. Certainly. public, and whenever you get anywhere in its neighbo1•hood it is Mr. SMOOT. I thought the Senator was speaking on the sub­ difficult to get unanimous consent for anything that even re­ ject covered by the resolution, as he has a right to do, but with motely concerns it. the tariff bill before the Senate. Mr. W A'JJSON of Georgia. Mr: President-. - Mr. HEFLIN. It may be that the resolution is temporarily The PRESIDING OFFICER (.Mr. McNARY 1n the chair). withdrawn; but I am still before the Senate. Does the Senator from Alabama yield to the Senator from Mr. SMOOT. I do not object to that. I said the Senator has Georgia? that right, and I am ;not objecting to it at all. Mr. HEFLIN. I am glad to yield to my friend from Mr. SHEPPARD. But has the Senator a right to renew the Georgia. objection after a motion has been made to refer the resolution? Mr. W A.TSON of ~rgia. I call the attention of the Sena­ Mr. SMOOT. Certainly, at any time. tor from Alabama to the fact that a New York paper this Mr. SHEPPARD. An opportunity was offered for objection morning states that there are 19 men in that State who have a when the resolution was first brought before the Senate, and net income per annum of $1,000,000 and more. instead of an objection being made a motion was made to refer Mr. HEFLIN. Yes, Mr~ President, and if they would tell the resolution. the truth there are more than that. There are more than that Mr. SMOOT. But that motion has been withdrawn, and now in Wall Street proper. I noticed in the papers this morning a the Senator objects. · statement that the amount collected by the Government from Afr~ SHEPPARD. Is it not too late for another objection? income tax had fallen off in the last year. One of two things Mr. SMOOT. I do not think so. has happened: You have excused men who ought to pay money Mr. HEFLIN. M1·. President, I started out with the impres­ into the Treasury, you have permitted them by some hook or sion that the Senator from Connecticut would object. This reso­ crook to dodge the tax:gatherer, you have permitted them to lution cal~ upon the bank in New York and the other banks to evade their just share of the tax burden of the Government, give to the Senate certain information pertaining to the conduct or you have so choked the instrumentalities of business th.at and the activity of the Federal Reserve Board and the Federal business has fa.Hen off, is paralyzed, and they have not pro­ reserre banks in politics. It is information to which the Senate duced generally as they did before. One· of those things is is entitled. It is information I believe every fair-min,ded Senator certain to be true. Yet, this morning, this fine June day, when on the other side will agree I am entitled to as a Senator in this I offer a resolution simply calling on the banks to give this body; but the Senator from Connecticut always has his eagle. information, which. would take but a little while to cGnsider eye out for any approach of anything toward a bank and the and would not cost the Government a cent, the Senator from control of the volume of money and of credits. He is always Connecticut has forced me to consume time to discuss the mat­ Johnny-on-the-spot then. I have not seen him so closely in ter, which I expect to do whenever a thing comes up like this attendance on this floor for quite a while as he has been this so patent on its face that it is fair and just and reasonable. morning, when he was doubtless looking for this resolution to So I must talk into the RECORD that is a perpetual record in be called up. the country. The people who read the thirty thousand and odd The Senator has a right to object; I am not criticizing him for copies of the R.EcoBD that go out of here each day are entitled to that· but I am criticizing the fact that he does object under the know on just which side Senators are when questions come up circ~mstances. It is ha.rd for me to work out just why a Senator here for consideration. would object to having this information furnished to another There are two sides to these questions. There is always a Senator, and to the Senate and the country, under the circum­ right side and a wrong side. I would be willing almost to stances. submit my case to any unbiased Republil!an in the country What is it in this body or in the Government that has such a and say to him: " Do you not believe I am entitled t-o- this in­ powerful influence that a simple request of this kind can not be formation?" I believe that the average Republican on the other granted by one Senator to another? In small affairs the Sena­ side of the aisle would say yes. There is nothing complicated tor is ve1-y courteous. The Senator asks, " Were you inter­ about the resolution. A committee is not required to fuvesti­ ested?" "Yes." "It pertains to you and your State?" "Cer­ gate it. It simply ca.Us upon the banks to give the information. tainly." "You are involved in it, and you want this informa­ Did you circulate Senator GLASs's speech? How much did it tion?" "Certainly." "I ha Ye no objection." That is the way cost? To whom did you send it? At whose expense did you it is done in things that oo not inYolve big things. But you send it? tread on the toes of one of these great octopuses that has its Mr. President, what is wrong or unfair in hat? Why can tentacles running out around the necks of every character of not the Senate pass that resolution? But the Senator from business in the country, you dare to insult it by calling on it Connecticut halts it. He stops it right at the threshhold. He to give you information through a resolution of this lawmaking refuses to allow it to be passed. He refuses to permit it to be body of the Nation, and somebody is right on the spot to object. considered this day. He suggests that that sin1ple, plain, Mr. McLEAN. Mr. President, r call the attention of the Sen­ straightforward, honest resolution be referred to the committee ator from Alabama to the fact that the New York World, on over which he presides and where my other resolution still whlch he relies a great deal, is authority for the statement that sleeps and will sleep until Gabriel blows his horn. He rise in the banking interests of my State have united to defeat my re­ his affable manner, smiling and bowing, and asks me to let this election. resolution go down to his committee. "Walk into my parlor," Mr. HEFLIN. Mr. President, I did not hear what paper said said the spider to the fiy. Oh, Mr. President, you know what that, but if the banking interests are fighting the Senator from happens to the fiy when he gets in there. They soon ha·rn a Connecticut they are fighting one of the most enthusiastic rep­ very nice situation. The spider and the fiy lie down together, resentatives they have ever ha.d upon this floor.. I like to :read but the fly is inside the spider. [Laughter.] He tells us they thl:) New York World, a Democratic paper, but whenever they want to investigate this resolution. What is there about it that say anything like th:::t.t about the Senator from Connecticut they needs investigation? · I have stated it. It is a simple, straight­ sure miscued on him. [Laughter.] fm.·ward request to these 11 banks to make this report to the Mr. l\fcLEiL.~. Perhaps the Senator from Alabama would Senate of the United States. This great body ls entitled to that like to know the reason assigned for this opposition. information. I want that information. I am entitled to it. I Mr. HEFLIN. I have not time to yield to the Senator to give would not deny any Senator on the floor that infomnation it the reason, because I want to finish my remarks. he sought it, but here I am held up by the Sena.tor from Con­ Mr. McLEAN. It is due to the fact that I am in favor of the necticut. Why? soldiers' compensation a.ct. Mr. President, I know why. We can_not put anything through Mr. HEFLIN. That is at least one redeeming trait, but how here at all that would injuriously affect those who can fix interest any man who is a friend of the soldier boys, believing in giving rates as they please and gouge the people on loans at e·rnry justice to them, can stand up on this floor and oppose immediate turn in the road. We can not get anything through here by consideration of a resolution like mine I can not understand. unanimous consent that affects predatory interests. They are Mr. President, the question involved here is a serious one. It too power:ful. There are people who lean on them for support • was raised when "Old IDckory » Jackson was in the "White in elections and they are not going to permit a request to go House, when he dared "call" the money power. Trusts have through by unanimous consent to in-P-estigate them or to ha-ve multiplied, and they are multiplying now. They are springing them do something that will give information to the Senate up overnight. They are increasing on every hand. Big preda­ revealing that they Ii.ave been circulating a speech that defended tory interests are rampant in the Reptrblic. The greatest trust 1 their conduct. They do not wish to give to the Senate the facts of tlb.em all, the most deadly and dangerous of them all, is the as to who suggested that the speech be sent out and at whose Money Trust, and the people know it. That trust controls the expense it was sent out. 9150 CONGRESSIONAL R!DCORD-SEN.ATE. J NE 22,

Mr. President, we can get through resolutions that do not The PRESIDING OFFICER. Is there objection to the re­ affect :my big concern, but let us come in with one that goes quest of the Senator from Alabama? The Uhair hears none, to the sore spot, that aims at the biggest trust of them all, the and it is so ordered. Money Trust, and we can not get very far with it by unanimous THE TARTFF. consent in this Republican Senate. The Senate, as in Committee of the Whole, resumed the Mr. President, it ought not to have taken more than one consideration of the bill (H. R. 7456) to provide re\enue, to minute to pass my resolution. My other resolution was passed regulate conunerce with forei~n countries, to encourage the in a minute or two. The bank at Atlanta has responded. Now, industries of the United State , and for other purposes. here is the chairman of the Committee on Banking and Cur­ Mr. OWEN. l\fr. President, the Republican platform of 1904 rency, Mr. McLEAN, sitting in the Chamber when the resolution declared: is read, and he halts it and asks that it be not considered but The measure of protection should always at least ·equal the difference sent to his committee. I most respectfully protest against that. in the cost of production at home and abroad. I do not want it to go to his committee. I have said that the The Republican platform of 1908 repeated this declaration other resolution was never acted upon, that I was not treated and declared against " excessi\e duties." right about that, and the public was not treated right. I am In the tariff bill of 1909 the Republican leaders in Congress entitled to object to sending this resolution to that commitee. disappointed the confidence of the country by writing a bill full I am entitled to ask its immediate consideration. But the of "excessive duties," with aYerage duties in eYery schedule Senator from Connecticut objects to its present consideration greatly in excess of the total labor cost in such commodities and and that ends it, Mr. President. Of cour e I can not get action in many of them running from 100 per cent up to 800 per cent upon it now. above the total cost of labor. During the discussion of that bill l\!r. President, I am going to ask that the resolution lie on I presented to the Senate a table demonstrating the accuracy the Vice President's table. The Senator from Connecticut has of that statement. I ask unanimous consent that the table withdrawn his motion to refer it to the committee and ob­ may be inserted in the RECORD at this point. jected to the immediate consideration of the resolution. I The PRESIDING OFFICER. Without objection, permission therefore ask that it remain on the Vice President's table and is granted. that the tariff bill be taken up. The table is as follows:

Estimated revenues. RECA.PITULA TION. [Compiled by Committee on Finance, April 12, 1909. The ad valorems are based on the dutiable values.]

Volume Per· Revenue under- Equivalent IX, Census or manufactures, 1905 s centage ad valorems. Census (calendar year 1904). of 1900.l labor 1-~~~~---~~~~~- 1 -~~~~~- 1 -~~-1-~~~~~,--~~~~~-1c~:f~~ Value ofmer­ Per­ or Schedules. cb&ndise (duti­ centage prod­ able and Cree). of ucts b7 labor Value of prod­ wagrs Present law Proposed bill Pres- Pro- cost to Wages. ucts, including and (act of 1897). (H. R. 1438). ent. posed. value custom work value, or and repairing. as prod­ shown, uct. 1904.1

Per ct. Per ct. A-Chemicals, oils, and paints...... $42, 067, 649. 85 Sll, 187, 405. 69 SU, 754, 112. 86 '%1. 62 28. 20 8. 0 I $44, 258, 256 4 $572, 848, 476 7. 5 B-Earths, earthenware. and glassware...... 31, 306, 008. 97 15, 350, 019. 67 15, 247, 487. 70 49. 03 48. 70 37. 1 154, 652, 719 420, 944, 049 36. 7 C-Metals, and manufactures or .... _...... 68, 016, 829. 55 21, 812, 195. 72 21, 523, 669. 22 32. 44 31. 65 12. 7 652, 109, 633 3, 130, 253, 195 20. 8 D-Wood, and manufactures of...... • • • • • • • • . 24, 493, 810. 90 3, 705, 024. 34 2, 723, 058. 08 15.12 11. 21 378, 461, 021 1, 393, 489, 978 27. 1 E-Sugar, molasses, and manufactures of...... 92, 784, OSI. 69 60, 338, 52.3. 31 59, 635, 940. 54 65. 03 65. 30 23, 536, 189 413, 333, 428 5. 6 F- Tobacco. and manufactures of ... _...... 29, 959, 081. 79 26, 125, 0.37. 41 26, 113, 185. 29 87. 20 87.18 · -- is: 9· 62, 640, 303 331, 111, 681 18. 9 · G-Agricultural products and provisions...... 63, 925, 575. 39 19, 181, 915. 96 20, 594, 283. 57 30. 16 32. 28 5. 7 100, 839, 004 2, 194, J~ 894 4. 5 70. 69 88. 89 8. 9 "-:!, 924, 676 474, 481' 379 9. 2 r-=c~¥~~~t..~~~~c::1es°.t~~~~-~~~~~::::::~::::: iU~ri:m:8i ~:;~~;gJ:~ ~;gig:~: r~ 44. 84 47. 14 26. 0 211, 955, 322 1, 014, 094, 237 21. 4 J-Flax, hemp, and jute, and manufactures of..... 114, 172, 202. 94 49, 900, 580. 31 50,35.3, 163. 25 43. 67 44. 07 13. 3 27, 223, 574 185, 094, 092 14. 6 K-Wool, and manufactures or...... 62, 818, 797. 81 36, 554, 815. 89 36, 554, 815. 89 58. 19 58. 19 19. 7 135, 059, 053 767, 210, 990 17. 6 L-Silks and silk goods...... 38, 816, S39. 20 20, 313, 705. 39 23, 581, 996. 60 52. 33 60. 76 22. 6 26, 767, 943 133, 288, 072 20. 0 M-Pulp J?apers and books...... 20, 005, 025. 62 4, 136, 029. 42 4, 042, 076.14 20. 67 21. 88 16. 2 123, 903, 633 548, 957, 239 22. 5 N-Sundnes ... _... _.. _.•..•••.•••.• _...... 135, 821, 484. 05 29, 896, 513. 49 31, 307, 603. 27 22. 50 23. 06 19. 9 ~ 34-0, 596.182 a 1, 954, 228, 027 18. 3 Total from custom:i...... •• • • . 779, 140, 621. 87 329, 110, 914. 39 j 338, 973, 303. 34 ····---·!················ 72,331,938,518 813,534,180,743 ...... Net increase ...•. , •••••••••••••.•••••••••••••••.•...... _.... _. __ .. _.. ... -I 9, 862,388. 95 Total luxuries, articles of voluntary use, duti- I able. __ .. _...... _...... 289, 411, 904. 28 149, 837, 286. 47 160, 454, 103. 74 Total necessaries, dutiable...... 489, 728, 717. 59 179, 273, 627. 92 178, 519, 199. 60 ··~~r~ ;;:;;::;~:::.:::::::::::::::::;··:· Total entries for consumption, dutiable and free.. 1, 415, 402, 284. 78 1· .... -.••...... 1 338, 945, 001. 07 .....•.. ,· ~23.95 ········1·····-··········1·····-············I········ Total necessaries, dutiable ana free...... 1, 125, 990, 380. 50 __ ...•.••••.... _ 178, 519, 199. 60 .....•.. 15. 85 ••••••••••••••••••••.•.• ··················1········

i Percentage of wages to value of product calculated and inserted.by R. L. OWEN. 2 Industries grouped to conform as nearlv as possible with the articles enumerated in the respective schedules of the tariff law. Industries with products named in two or more schedules are credited to the schedule which includes the major product. The value of products for each group is the sum of all products of all industries in the group.!. and hence include.q a large amount of duplication due to the product of one industry serving as material for another. 3 :should be 156,796,143; addition erroneous. 4 Should be $767,401,417; addition erroneous. ~ Should be $273,959,320 (seep. 67). a Should be Sl,495,686,437 (seep. 67}. 1 Should be $2,277,838,543. 1 Should be $13,270,192,088.

l\lr. OWEN. The table which I have inserted in my re­ The total percentage of labor cost in Schedule I, the cotton­ marks completely exposes the pretense that the duties im­ goods schedule, was 21.4 per cent. The maximum permissible, posed are justified on the theory of protecting labor, because if European labor cost nothing, would be 21.4 per cent for the percentage of labor in the products on the chemical protective purposes, but the schedule of duties was fixed at 47.14 • schedule, for example, as to the value of the product, averaged per cent, over 200 per cent of the total labor cost. 7.5 per cent, while the duties imposed were 28.20 per cent. In Schedule K, woolen manufactures, the labor cost wa If labor cost nothing in Europe, 7.5 per cent would be the maxi­ 17.6 per cent on such commodities, while the duty im­ mum duty permissible for purely protective purposes on the posed was 58.19 per cent, over 300 per cent of the total labor commodities of the chemical schedule, but the duties imposed cost. were put at 28.20 per cent on such articles, or 400 per cent of An

Ml'. Pres!Uent, I am in favur uf a scientific tariff removed Total Tarift from politics. I am p~rfectly willing to study the tariff sched­ Manufacturing schedules. labor cost. rate. ules, but I know equally ·well the fo.tility of it. When the tariff bill of 1909 wa~ being eonsitlered, my remal'ks on June 15, 1909, took 60 pages of the CoNGRESSIONlU.. RECORD. It was a Yery, Per cent. Per cent. A.--Chemicals. ·-· ••.• _••.•. : •.•.••..•. : ••.• :. •• . • • • • • ••••••••• 8. 0 28.ro careful analysis; it was wo'I"k faithfully done; it would make B.-Glassware...•..•...•..•.•...••.•. : ...... • . . • . • . . . • • • . • . • • . 37. 1 48. 10 · an ordinary octavo book of 350 pages,'but of what use was it? 0 31.65 The partisan leaders bad determined to give the special inter­ %:=.~~~ ~i:: :::: :: ::: :: : ::: :::: :::::::: :::::::::: ::: :: g: 11.21 r 65.30 ests in this country whatever they wanted, and the schedules ~:~~ra~~~:: :: :: :: :: :: :: : : :: :: : : : : : :: :: : :: :~ ~:~:::::~::: :: 1~: g 87.18 were put through accordingly. It is true 'that it caused a revolt G.-Prov.isions ...... •..•..~---····-·-···················· 5. 7 33.28 in the country when the people realized the injury to their '88. 89 f..:=c~f:0~~~8::: :: :: ::: ::: :: ::~:: ::: ::: ::: ::: :: :: ::: :::::::: J: ~ 47.H business enterprises and to the consumers, and then '.followed «.07 u Teaction with the Democrats in power, who proceeded to re­ k-:=-~01h~!~_t::.-:::::: :::::::: :::: :: :: : :::: :::::: :::::.::: ~: ~ 58.19 write fhe tm.·rn: bill for revenue purposes, which involved ex­ L.-Silk: goods.. ••••••••••••••••••••.••••••••••••••• -~ ••••• _... 22. 6 60. 76 ceedingly high protection nevertheless. The Democrats have M.-Paperand books.•••••• ·-·-······························· 16.2 21. 88 N .-Sundries...... 19. 9 23.06 always intended to give incidental protection. They have given, incidentally, 1)rotection 'far more than is necessary in my judg­ The etlculation of the percentage uf lab01.· cost to the value ment, and without apparently realizing the fact. of prodincts is made from figures taken .from the United -States I am willing, as a Democrat, and I believe the Democratic census and will be found in my address of June 15, 1909, page leaders are willing, to ·give full protection up to '' the differ­ 3261, and following. The present bill makes these duties much ence in the 'Cost of production at home and abroad," but I am higher, without any justification whatever unless fancied .po­ opposed to "excessive duties." The Demoerats of the country, litical expediency can be deemed justification. are opposed to "excessi'v-e duties," and I believe that nine-tenths I demanded at the time of the managers of the bi.Jl that of the Republicans are opposed to "excessive duties." Those they ·explain these excessive duties on the ground of -protecting who 'favor excessive dnties-the very rich and powerful-who labor in America and they we1·e unable to do so. I challenge seek to establish monopolies by cutting ·off foreign competition, tbe present Republican leaders now- to justify these excesslve dare not say as much to the American people ·and can only put duties on the theory of honest protection. The only theory over such high schedules and monopoly- protecting and monop­ that can justify a charg-e higher than the total labor cost in oly engendering duties under the color of party loyalty and a commodity is on the theory of producing revenue, and IJatriotism and the 'Prutection of labor. The plea 'Of -political even this theory does not justify such an interference with expediency covers a multitude of -sins. commerce. 'Mr. President, I offer the following amendment to the pres­ The Democratic Party has justified its ·schedules in the past ent bill to be inserted on a suitable page and line: on the ground of favoring a tariff for re\'enue and have most The Unitoo States Tarifr Commissi-0n is hereby authorized and di­ unwisely used the term for ·revenue "only," when in sober rected to ascertain the ditrerence in tb-e ·cost of production ..at home and abroad of every article imported from any foreign country into the truth every revenue tariff ever passed by the Democrats con­ United States or into. .any of .its posses~ions where duty is imposed on tained· duties higher than were necessary to protect American such article. The said commission is directed to ~alculate the specific labor. duty equal to the difference in the cost of ·production at home and abroad at such article, which, with 10 per cent added thereto, shall be _As a lifelong Democrat believing that commerce should be published by said com.mission as the duty fixed upon .suoh article by interfered with a.s little as possible by government, I should the Congress of the United States. be perfectly content with a tariff that would truly impose duties Mr. President, this provision or its equivalent will put an: measuring merely " the diffe1·ence in the cost of production end to upsetting the business of the United States .every time at home and abroad,'' that woulu giT"e full honest protection. there is a change of parties in our national elections. There is always 'the additional protection to American manu­ Under this plan scientific honesty can be made to replace facturers by as much as the freight across 3,000 miles of water political expediency, logrolling, false testimony, and "excessive and the insurance and -port charges would be added to snch duties." . duties. Congress will be able to transact the national .business with­ In addition to such protection I should be willing to add for out bein.g torn to pieces by trying to do the impracticable and full good measurn 10 per cent, because I am more than willing, impossible duty of passing on the duties of 4,000 commodities as I believe all other Democrats are, to give honest protection which fluctuate in value from ti.me to time. to meritorious American industries. What I vigorously object It will put an end to depressions due to uncertainties with to, what all Democrats object to, are duties so excessive, so regard to tariff duties. far above " the dil'ference in the cost -of production at borne and It will remove .as far as practicable unnecessary obstructions abroaa," as to engender and p-rotect monopoly and make effec­ to international commerce. tive a substantial robbery of tbe consumers of the country. It will enable Europe to pay its debts to America which can The plain truth is, l\Ir. President, that both the Democratic not be done under a prohibitive tariff, as these debts must be tariff and the Republican tariff are much higher than such a paid in commodities. tariff as would impose duties equal to the difference in cost It will apand our foreign commerce and give new markets to' of production plus 10 -per cent or plus 20 per cent or plus 50 our manufacturers, because it is impossible in the long run for _per cent on an average of the schedules. one nation to ship more to .another nation than it receives. The truth is, 'Mr. President, that whether the DemoC'ratic "Whatever we buy from .abroad we pay for in terms of our o-wn committees or Republican committees are writing these tari:fr commodities, and the more we buy from abroad the more we schedules they are subjected to the p'I"essure of special interests, will ship .abroad. This eY.erlasting truth can never be broken, of parliamentary solicitors, of gentlemen of the finest m1mners, and when the world fully understands it, as hundreds .of thou­ of the greatest social talents who subject the committeemen and sands do understand it, it wm be discovered that it is to the Congressmen to blancltshments and cajoleries that are iITesist­ interest of all mankind to interpose as few obstructions as. ible, while the inarticulate maS"s of the people of America -who possible in our domestic or in our international C(}:mme1·ce. The pay the prices arising under the shelter of these high duties do one gigantic fact which bas made Ameriea prosperous, exceed4 not seem to be adequately represented in such ex: parte ingly prosperous, has been the complete freedom from interfer­ pleadings. ence in our interchange of commodities between the 48 States As a consequence the tariff duties, whether Republican or of the Union. Tha.t is why America has built up the _great-est Democratic, are far higher than a-re requi.red on the principles .domestic commerce of any like number of -people in tlle world; of protection honestly and faithfully applied. It is easy to that is why America has developed the greatest banking power impose upon Congress. He1~e comes this present tariff bill of in the w.orld with nearly fifty billions of assets. over 400 pages and with four or five thousand items on these M:r. President, I appeal 1:0 my Republican associates, who schedules based on evidence taken without the safeguard of an love their country as well as I, to take th-e tariff nut of politics oatb, with no legal penalties -for imposing -upon Congress or and _give our people a scientific admintstratiou in the imposition abusing its confidence and witb Yolumes of evidence running of duties which shall afford honest protection and nothing more into. thousands of pages. than protection. Let us raise our revenue by other means than Members of Congress, in addition to passing on the involved choking the arteries of commerce and obstructing the flow of questions of duties on tbousanas of items, have Tery many commodities into and from our country which has grown rid.( other things to do in conduding the affairs of this gigantic and powerful at ·home by freedom of commerce at home. , Government, and the capacity of men-and ff I s-ay it ·without No Republican can justify himself in voting against th~ offense, e\en of Congressmen-is limiteiL amendment ~ _propose on the gr-ound that it iB unconstitutional 9152 CONGRESSIONAL RECORD-SENATE. JUNE 22, or on the ground that it delegates the legislative power. The Re­ courage to apply itself to the discharge of that duty, I do not publican Members are precluded from. making this charge be­ know. That remains to be determined by the action taken by cause they have given to the President in this very bill powers my friends on Ute other side of the Chamber. greatly in excess of what I propose the United States Tariff The PRESIDING OFFICER. The question is on agreeing to Commission shall exercise. the committee amendment. In fact, I do not propose to give the Tariff Commission any M·r. CURTIS. I suggest the absence of a quorum. power except to make mathematical calculations based upon The PRESIDING OFFI-O:IDR. The ·secretary will call the the evidence which they are directed to take. The duties which ~L . I propose by this amendment are fixed by Congress as a legis­ The reading clerk called the roll, and the following Senators lative act, leaving to the Tariff Commission· the mathematical answered to their names : calculations based upon facts which they are directed to as­ Broussard Harris Mo-:;es Simmons certain. Cameron Heflin Myers Smith Congress can not fix railroad rates or tariff rates as a prac­ Capper Hitchcock Nelson Smoot Caraway Johnson Newberry Spencer tical matter. Its legislative powers can be exercised in a prac­ Culberson Jones, Wash. N<>rris Sutherland tical way and this must be done through laying down the prin­ Curtis Kellogg Oddie Townsend ciples and permitting the Executive to discharge the adininis­ Dial La Follette Overman Trammell Ernst Lenroot Owen Wadsworth tratirn duties fixed by Congress under its legislative authority. Frelinghuysen L<>dge Pepper Walsh, Mass. It will be observed that I propose to give the Tariff Com­ Glass 1\lcCormick Phipps Warren mission no power whatever to fix the rate. Under the amend­ Gooding Mccumber Poindexter Watson, Ga. Hale McKinley Pomerene Willis ment which I propose the rate is fixed by the legislative power Harreld M~~ary Sheppard of the Congress of the United States at a point which shall " equal the difference in the cost of production at home and The PRESIDING OFFICER. Fifty-one Senators havtng an­ abroad," leaving the ascertainment of the facts to an admin­ swered to their names, there is a quorum present. istrative board. charged with the duty of working out the DISTRIBUTION OF SPEECHES BY FEDERAL RESERVE BANKS. mathematics thereof, a rate which may and will fluctuate from Mr. GLASS. l\!r. President, if I may venture to delay the time to time but which will always represent the legislative unfinished business of the Senate for a moment or two, I desire will of Congress, will always be absolutely fair to American to make some brief observations upon the question that has been producers, equally fair to foreign producers, and, above all, fair most discussed to-day. to the consuming public of the United States, and beneficial to Since making an arldress to the Senate on the 16th and 17th our manufacturers in America who will find their foreign mar­ of last January, in which I endeavored to present an exposi­ kets expanded under this system tion of the Federal reserve act and a defense of its administra­ Under the amendment I propose the legislative will is ex­ tion, I have very carefully refrained from all participation in pressed with as much precision as is humanly possible, and the subsequent discussions of the question. I rather felicitate my­ legislative will, if this be the legislative will, can not be car­ self that the address which I did venture to make seems to have ried out practically except by the use of some such administra­ been so complete in all of its details and its deductions that the tive agency. distinguished Senator from Alabama [Mr. HEFLIN] appears to It is obvious that under our present practice the collector of have found it necessary to attempt to reply to it about 40 or the port of New York, for example, exercises just such an ad­ 50 times. I have not found' it either desirable or necessary to ministrative power under the present tariff act. He uses his make any response whatsoever to what that Senator has said judgment on the classification of the goods imported; he deter­ about my first and only speech on the subject; and not until mines the quality of the goods ; he determines the value of the to-day, when I was drawn into a most distasteful notoriety by the goods; he applies the principle of the act, whether ad valorem episode to which the Senate was a witness, have I even venh1red or specific, and his deputies figure up the mathematics in each to interrupt the Senator from Alabama, or to correct any of Ws individual instance. The parallel is complete. No one may multitudinous inaccurate references to me personally and to the properly assert that Congress has a right to declare as its legis­ subject upon which we disagree. I rise now only to set myself lative will that the tariff shall equal the difference in the cost right with respect to one aspect of this matter. of production at home and abroad a.Rd then have no power to The Senator from Alabama said that I had not objected to put that legislative will into effect. the consideration of this or any other resolution which he has I am informed with regard to the authorities cited by the presented having as its purpose a disclosure of certain facts as Senator from Montana, May 8, 1922, RECORD, page 6494, and so to the distribution of my speech by the banks of the country; forth, and these decisions, in my judgment, are wise and right, and that is true. I have not objected, and I do not intend to and they do not in the slightest degree abate the force of my object; but frankness compels me to say that I have not ob­ contention, while they clo apply to the undefined powers at­ jected only because it is my speech that is involved always in tempted to be conveyed to the President by the pending bill and the resolutions of the Senator from Alabama. I haw not ob­ which would transfer to him legislative power which Congress jected merely through a sense of delicacy and furthermore has no right to do. I give notice, Mr. President, that at the through conscious indifference to the whole matter at issue. proper time I shall demand the yeas and nays on my proposed I do not care who knows what banks have circulated my speech amendment. or how many have been circulated. I could haYe given the Sen­ I listened with interest this morning to the address of the ator all the information which he seems to desire on the subject Senator from Indiana [Mr. WATSON]. He demonstrated to my long ago bad he made a simple inquiry of me as to what banks entire satisfaction that under the existing condition of the retail had circulated my speech and as to how many had been cir­ markets of this country there is no need for any increase in the culated. protective duty, for he showed us case after case where the for­ Of one thing the Senate may be entirely assured, and that is eign goods in competition with American goods were selling that I never asked or suggested in the remotest way that any at 100 per cent, 200 per cent, 500 per cent, and 1,000 per cent bank or anybody else circulate a single one of my speeches. I above the actual cost of the article plus the duty. For the had a moderate number of copies of the speech printed on my purposes of revenue his argument is valid, for if such prices own account, in response to thousands of requests from various are being obtained from the consuming public in America by the . parts of the country for copies of the address. I had them retailers, there is a wide margin there, of which the Govern­ printed at my own expense and circulated only in response to ment of the United States may take advantage for revenue pur­ these requests; so that I have been indifferent to this furor6 poses, but for the purpose of protection there is no intellectual over the circulation of my speech by the banks of the country; justification in the argument of the Senator from Indiana. and, as I have indicated, through a sense of delicacy have made It is shown from the evidence which the Senator has sub­ no objection to these resolutions of inquiry. I do not care to mitted and which othe1· Senators on the other side of the have it understood, howeYer, that my judgment sanctions any­ Chamber have submitted that there is, in fact, in this country thing of the sort. I think the Senate has nothing whatsoever to a profiteering going on in the retail business. That demon­ do with the circulation of anybody's speech by any plivate stration is complete as made by Senators who have addressed banking institution of the United States. the Senate with regard to various articles. If they take the It is not an unu ual thing for banking in 'titutions to estab­ position that such high prices ought to be abated, I agree with lish and conduct publicity departments. I venture to say that them; but no step ls being taken to abate them. I think it there is not a bank of considerable importance in the United ought tO' be made n criminal offense in the District of Columbia, States which has not a publicity bureau. I have on my d.esk for example, where Congress has authority, for the retailer to right now a pile of literature circulated from time to time by charge over 100 per cent profit on the uticles which he is banking institutions in the United States and in other countries. retailing to the public. There ought to be some limitation The great banking institutions of Great Britain and Germany somewhere on prices. Whether the party in power has the and France have thefr publicity departments and send out, if not ' 1922. CONGRESSIONAL RECORD-SENATE. 9153 every week, at least once every month, their literature, dis­ tor with their private mailing lists in order that he may dis­ cussing economic problems and the relation of political move­ patch his speech or speeches to the persons with whom these ments to the business interests of these respective countries. banks are accustomed to do business. At least 20 of the great banks in New York City have their If that is the view of the chairman of the Banking and Cur­ publicity bureaus and each week issue these pamphlets discuss­ rency Committee, if he thinks it is a proper exercise of the ing political questions in their relation to the business interests Senate's power to engage in that sort o"f thing, I should advise of th6 country. So that there was nothing of an unusual nature that he withdraw his objection and let these banks be by about the circulation by these banks of a speech made by a this method coerced into disclosing their private business public man in the Senate of the United States. affairs to the Senate of the United States, albeit by doing so I may say, in passing, that it was not a political address. the substantial operation of these banks is interfered with. I defy anybody on earth to read it from the beginning to the Mr. McLEAN. l\ir. President- end and say, from its contents, whether the man who delivered The VICE PRESIDENT. Does the Senator from Virginia the speech was a Democrat or a Republican. It undertook to yield to the Senator from Connecticut? discuss no political aspect or phase of the problem whatsoever. Mr. GLASS. I yield. It was strictly and exclusively an economic discussion, so much Mr. McLEAN. I assumed that the Senator from Alabama so that 23 State universities and colleges, including some of the requested this information from the Federal reserve banks and great educational institutions of the United States, have adopted had no application to the national banks. Inasmuch as the it as a textbook to be taught to their classes in economics. So Federal reserve banks are more or less under the control of I say it was in no sense a political address. the Federal Reserve Board, and their directors are chosen by As to the right of the Senate to make inquiry into the mat­ the Federal Reserve Board, it seemed to me that they did stand ter, had I not been involved, or had my speech not been in­ in a relation a little different from that of the national banks volved, I should undoubtedly have objected to the right of the in so far as their operations are concerned and that it might be Senate to make any inquiry into the matter at all. It has been proper for the Senate to request information from one of the said here tliat the Federal reserve banks are the creatures of Federal reserve banks. the Congress, and they are. So are the national banks the l\Ir. GLASS. I will say to the Senator that in the matter of creatures of the Congress of the United States. They operate control the individual national bank, operating under an identi­ under precisely the same charter rights as are possessed by the cal charter, is very much more subject to Government control Federal reserve banks. But they are private institutions. Like than a Federal reserve bank. The national banks are put the Federal reserve banks, they pay to the Government a fran­ under the ~bsolute control of a single man, to wit, the Comp­ chi e tax, and that is all. The Government of the United States troller of the Currency. ha not furnished one dollar of the capital of the national bank­ Mr. l\1cLEAN. The directorship of a national bank is en­ ing ;nstitutions and the Government has not furnished one dol­ tirely private, and the Senator knows that some of the directors lar of the capital of Federal reserve ba11ks. of the Federal reserve banks are chosen by the Federal Reserve National banking institutions are owned and operated by Board, and the Federal Reserve Board is appointed by the their private stockholders, who contribute to their capital and President and confirmed by the Senate. Without giving the manage the institution;~. Federal reserve banks are owned and matter much thought, it seemed to me that the relationship operated by the stockholding member banks. The United States was much more intimate between a Federal reserve bank and Government has never contributed a dime to their capital stock. the Government than between a national bank and the Gov­ The Senate of the United States has as much right to-day ernment in any matter which related to expenditure, or, if you to ask or to require the Irving National Bank of New York, or please, to the sending out of public documents, or things of the First National Bank of St. Louis, or any other individual that kind, and that a resolution of inquiry might properly national banking institution in the United States, to furnish an emanate from the Senate. I have not given tho matter verv individual Senator with its mailing list, or to furnish the Sen­ much thought, but I still think that it would be in order fo""r ate with its mailing list, as it has to ask or to require one of the Senate to request any information it desires to receive from the Federal reseri;-e banks to fu~nish the Senate or any indi­ the Federal resen-e system, confining it to the Federal reserve vidual Senator with its private mailing list. banking system. It bas just as much right to ask or require an individual 1\Ir. GLASS. In my judgment, the relationship is very much national bank operating under its Federal charter to furnish less intimate with respect to the Federal reserve banks than a Senator with a list of it· depositors or of its borrowers, as with respect to individual national banks. It is conceivable it has to require it to furnish its private mailing list to a Sena­ that if a charge of fraudulent transactions or flagrant mis­ tor for the purpose of dispatching an address of bis to the management of a Federal reserve bank should be made, a joint bank's correspondents; and it has no right to do either. The resolution by the two House of Congress for an inquiry as to only interest of a pecuniary nature the United States has in the facts might be proper; but even in that case Congress a national bank is that a national bank shall pay into the Treas­ itself has established a central board to supervise the opera­ ury of the United States a franchise tax from its earnings, and tions of these banks, and it very properly relies upon the the only pecuniary interest the United States Government has scrutiny and viligance of that board to control any matter of in a Federal reserve bank is that it shall pay into the Treas­ that description. ury of the United States a percentage of its net earnings as a But let us not be deceivE>d about the nature of this inquiry. franchise tax to the Government, after it has made the The whole purpose of it was frankly avowed here to-day by the earnings. Senator from Alabama, and it is that these 9anks may be by The United States Senate has not hitherto bothered itself the Senate compelled to furnish him with their private mailing or concerned it elf with the detailed operations of individual lists in order that he may utilize those lists for the purpose of national banks, nor has it concerned itself or bothered about posting copies of !lls speeches to people who do business with the detailed operations of Federal reserve banks. It might as those banks. The Senator has made no concealment of that well require these banks, of either character, to furnish it with purpose on his part. Now, then, .will the Senate proceed logi­ a statement of the amount of ice water drunk by its employees cally to require those banks, at the expense of their private as to furnish the Senate with its private mailing lists. stock.holding banks, some of them State banks, to have printed I have said this much, 1\fr. President, only to elucidate, as I and purchased the speeches of the Senator from Alabama, and think. the apparent misconception in this body of what a Fed­ to circulate them at the expense of their stockholding banks, eral reserYe bank is, and of what the relation of the Govern­ notwithstanding their judgment may entirely disapprove of ment, or the legislative branch of the Government, is to these what the Senator from Alabama has said; albeit they may banks, and that is all. There seems to be a misconception as to think that his construction of the Federal reserve banking this, even om the part of the distinguished chairman of the system is totally at fault, saturated. with prejudice, with no Banking and Currency Committee, because in a qualified" way intelligent conception of the real purpose and meaning of the he promised the Senator from Alabama to report back this law? Is it the irtea of the distinguished Senator from Con­ re olution. I want to say that if it is the deliberate judgment necticut that the Senate must proceed in that fashion; that of the Senate that this body has a right minutely to inquire just because a bank has circulated an address of a Senator into the private business operations of a national bank because giving an economic exposition of an economic problem, without it possesses a Federal charter, or a Federal reserve bank be­ one semblance of politics in it, therefore those banks must be cause it is operating under an identical Federal charter, there compelled, at the expense of their private stockholding banks, is no need whatsoever to refer this or any kindred resolution to circulate an antagonistic view of the banking system, one to the Banking and Currency Committee for report, and I shall that charges its officials with murder, that charges it with hav­ adYi e that the uuanimou consent be given to exact this infor­ ing pauperized a great section of tl;le country, notably the State ma rion, and eX11licltly to require these banks to furnish a Sena- of Alabama, that charges its officials with graft and dishonesty? XLll--o-577 I , I 9154 00.rJGRESSIONAL RECORD-SENATE~ JUNE 22,

How unrea onable, iMr. President, it was in the officials of S. 1880. An act providing for the appointment of Warrant tMse lb.anks to circulate an economic address that conserva­ Officer Herbert Warren Hardman as ca:ptain in the QuarteT­ tively sought to defend them ·~gainst charges -0f graft and theft master Corps, United States A.1·my; nd assassination! What are these bank offi.cials that they · S. 2682. An a.ct 1:o amend the act entitled Ac .An :a.ct to estab­ should resent imputations of that sort against their character? . lish a code of law foc the District of Columbia, a-pproved Mareh These men who are selected by the inclivif John M. Green ; which are purchased from abroad. W.hat is the evidence of that S. 1087. An act for the relief of H. L. MeFarlin; charge? It is a serious charge to make .against any class ()f S. 1730. An .act for the relief .of Philip S. Ever-est ; business people who stand well, as do the American importers, S.1784. An act for the relief of John ·n. Elliott; for generally tbey are American citizens, although one might 1922. CONGRESSIONAL RECORD-SENATE. 9155 not think so to judge by what Senators on the other side say to stand here and say, "We have the wholesale selling price of of them, and those citizens interested in the department stores. the foreign article, but we are not able to present to the country What is the evidence upon which it is sought to convict these the wholesale selling price of the domestic article." That is two great interests in the United States of opposing this piece convicting themselves of having framed this bill upon a certain of proposed legislation, claimed to be. in the interest of the theory and being ignorant of the facts that were necessary to people, from selfish or greedy and improper motives? What is enable them to apply that theory to a given object. the testimony? The testimony is the ex parte statement of They have no time to look up these essential facts in connec­ two propositions, and only two: First, that the foreign selling tion with this question, Mr. President, or they refuse to do it; cost of the imported article appears to be low, and, second, they have no time to give the country information to enable the that the retail selling price of the particular article in this people to discover whether the serious charge against large and country appears to be very high ; in other words, it is sought influential classes in the United States, embracing the press to convict this class of business men of the United States of itself, incidentally, may be sustained ; they have no time to find improper motives because of the alleged big spread between out the facts that would enable us to test the truth of their the wholesale price of the imported article and the retail price charge. They have had no time until recently even to discuss at which that article is sold in the American market. the schedules of this bill ; they were so pressed that they insisted Mr. President, it is clear that if this charge ' ·ere made in upon voting without serious and due consideration and discus­ a court of justice no prejudicial inference could be drawn from sion of the items; and yet, l\1r. President, when it comes to pre­ those two facts against the department stores or the importers. ferring infamous charges against the newspapers of this coun­ It is evident that the essential fact necessary to support and try, including the Republican press as well as the Democratic sustain the conclusion which the Senator from Nt.-·th Dakota and the nonpartisan pres , these Senators not· only take two or [Mr. McCuMBEB] and the Senator from Indiana [l\Ir. WATSON] three days of the time of the Senate in trying to bolster up this attempt to draw bas been left out and sl1ppre ed, and that no unfounded charge but they have men scouring the country. effort on our part to pry out of them these facts, if indeed they rushing from port to port, from store to store, with a Tiew to possess them, has been successful. I undertake to say that if finding some exceptional or freak importations upon which to those two Senators were proceeding in a court against the im­ make a charge, and leave out in the making of that charge the porters and the department stores to prove a charge of profiteer­ vital evidence necessary to give it force and effect. ing on articles brought from abroad they would not only pre­ Mr. President, it is charged that the importer is also the re­ sent to the jury the wholesale selling price of the foreign ar­ tailer, and therefore that we should look at the importer in a ticle, but that they would present to the jury and they would very different light from that in which we look at the American feel that they had made out no case unless they presented to whole aler, because the wholesaler i not a retailer, although, the jury at the same time as an essential part of the e-vidence as a matter of fact, many of them do retail as well as whole ale the wholesale selling price of the comparable American article. business. There is but little significance in the fact that some Nor would they think that their case was completed when of the articles that have been exhibited here were sold by the they presented the wholesale selling price in the American mar­ ame concerns that imported them. So far as the spread is ket of the foreign article unle s they at the same time presented concerned, the spread in that case would naturally be very the retaiJ selling price of the comparable domestic product in much the same as the spread between the whole ale elling the American market. price and the retail selling price. Why? Because the importer­ l\!r. OWEN. l\1r. President-- he may be a department-store head-must pas the overhead The VICE PRESIDENT. Does the Senator from i\orth Caro­ charge of importation. He can not import without paying the lina yield to the Senator from Oklahoma? same overhead charges that any other importer has to incur. Mr. SIMMONS. I should be glad if the Senator from Okla­ He can not then sell as a retail dealer without incurring also the homa would not interrupt the line of thought I haY"e in mind overhead charges of the retailer; and o, in the case of the im­ just now. I will yield to him a little later on. porter who is also a retailer, against that particular object of Mr. OWEN. Very well. merchaudi e we ha\e the item of the overhead of the importer Mr. SIMMONS. I say those facts are absolutely necessary as well as the oY"erhead of the retailer to take into account, and to make out the case and support the charge which is made then to that must be added the profits. I say, therefore that against these reputable business men. Why did th~ distin­ there i vei:y little difference between that ca~e and that ~f the guished Senators no~ present those facts? ~s it because they importer who sells to the retailer. were not in possession of them? Mr. President, as to these Is the importer who in also a retailer practicing eA-tortion little trifling articles of commerce which they have exhibited upon the public as a retailer? Mr. Pre ident, we can not tell to the Senate and to the country, it would have been just as unless we a certain whether or not he is charging the A.melican eas:v to obtain the wholesale selling price of the comparable consumer a higher retail price for the foreign article than his American article as it was to obtain the selling price of the competitor is charging the American consumer for an America.n­ foreign article. It would have been just as easy for them to produced article at retail. This much is absolutely apparent have ascertained the retail selling price of the comparable do­ that the high retail price at which these articles have been de~ mestic article as it was to a certain the retail selling price of clared to have been sold in the American market could not ha-ve the foreign article. been realized for those articles in thi market unles~ the Ameri- · That suggestion was brought to the attention of the Senator can product had been sold at retail for as lligh a price as that from North Dakota a few days ago when lie presented his paid for the foreign article. If the importers of foreign prod­ argument. He must have seen its force. The country saw it; ucts were able to command high prices for tho e products in the American press saw it; it was not hidden from anybody. the American market-prices that ·eem to be outrageous profit­ It may be said that hd had inadvertently failed to get those eering-it is because their competitors, dealing in A.merican­ facts and present them to the Senate; but I maintain and I produced products at retail, have set the pace, and the importers submit that when four or five days afterwards another ma­ a re simply following them. jority member of the Finance Committee make exactly the Why attack the importer·s motives with respect to tllis bill same argument, presents exactly the same facts, and neglects, under those circumstances and not at the same time attack the as the Sena.tor from North Dakota neglected in hi speech, to motives of tlie hundreds of thousands of retail merchants in pre ent these additional and essential fact , which might in the tbi country from one end of it to the other who are denouncing meantime easily have been ascertained, it is apparent they do thi bill in unmeasured terms? Why single out the importer not desire to present to the country a comparison between these as a criminal? If he is n criminal because he exacts in the prices. American market these high prices tllat are alleged to have been Oh, Mr. President, it is incredible that Senators who are here giveu, then it necessarily follows that the American retailer of voting to impose taxes upon these articles have not already in domestic products is also a criminal. If the importer·s motive their possession the evidence showing the difference between must be attacked and his oppo ition to tllis bill attributed to the wholesale price of the foreign articles which they have men­ selfishness and profiteering, upon the ame theory every retailer tioned, all of which are covered in the tariff bill, and the whole­ in thi countr~· who L opposing tbi, bill-and I sa~· the great sale selling price of the American article. To say that they bulk of them are ; nine out of ten of the retailers of this coun­ are not in possession of both of those facts is to say that they try, according to my information, are opposed to this bill-we knew nothing about the very fundamental facts that must lie at might ju t as well denounce them and their opposition as to the bottom of the rate proposed according to the theory upon denounce the importer. which they claim they framed this bill. But. Mr. President, suppo-e tltat it be couceued-aud. of They say they framed it with the idea of bringing up the coure, it is not conceded-that the Senators lH1Ye made ont wholesale selling price of the imported article to the level of their ease against the importer and the department-store peo­ the wbolesa le selling price of the domestic article. If they ple. Suppose they have sh°'vn that these men are ontrngeons frnmed it upon th:-it theor~·, it i criminal negligence for them profiteers in the retail market of the Vnited States; that they 9156 CONGREEfSIONAL--RECOR~SEl'iATE. JUNE 2:!, a re criminally guilty of extortion upon the people; and that vaudeville tariff shows we have had in the Senate, according to they ought to be segregated from the American retail profiteer the confession of both Senator . and punished and held up to the cnntempt of the Congress and Of course, we have sh.own that the Senators. have failed to the country. If they have established that, Mr. President, hoW' ma.int~in eJther charge, tirst, because they would not get the ha't'e they made out their case against the newspapers? essential evidence as to one, and it is a rul~ in the courts where I assume that these gentlemen are not after the importers I nsed to practice that 'whenever you catch a party to a suit and the department stores so much as they are after the news· suppressing a fact it is because he knows that its presentation papers of the country, the press of the country. That is their would not :idvance his action, whatever its character might be. objecti'9'e. We did not bear much talk about the activities and They said we were going to have some more of these shows. the sinister motives of these importers and department stores I challenge them now, it they do make a third effort to convict nntil we began to read into the RECORD these editorials from these department stores and importers, to bring the essential the great metropolitan newspapers of. the cmntry denouncing evidence, the lack of which is now the fatal defect in their this bill in unmeasured terms. It was these' editorials under case against those stores and importers. I demand that if which the Senators on the other side, in charge of this bill, they are going to insist that this inftnence accounts for the squirmcl and writhed. It was these editorials that drew attitnde of the Republican press of this country, that they bring their fire. But, Mr. P1·esldent, it became necessary to ascribe us some evidence other than the1r bare statements to sustain a sinister and a corrupt motive to the newspaperg, especially that charge. of the Republican press, that were so severely criticizing and I want to talk just a little while about ihese things which denouncing this bill; and then for the first time, coming in have been presented to us here to-day. We are here considering force, in overwhelming force, we saw and beard these assaults a very important bill. Evidence is to be brought be1·e to accom­ upon the department stores and the importers. For what? plish a very serious purpose, to wit, the discrediting of the For the purpose of fixing an ulterior and unworthy motive newspaper press of ~ country, and the conviction of certain upon the newspapers for their attacks upon the bill. great i:qterests in this country of dishonest and corrupt motives When these great newspapers declared· themselves, and when and extortion from the public. What have we had here be: their lead was followed by the big papers of all the large fore us? towns of the country, without reference to whether they were We have bad an exhibit of a number of little, trl1fllig articles importing centers or not, when Senators on the other side saw gathered up with great care. It probably took several week~ that the clamor against their bill, which started with these for the flying squadron of appraisers, who have been out search­ newspapers, was being taken up by the smaller dailies and ing over the tomes of the customhouse to find some exceptional weeklies throughout the country, and saw the number, day or freak importations, to gather up the articles exhibited by the after day, of these assaults from Republican sources, from Senator from North Dakota the other day. Then they rushed newspapers that had always supported the theory of protec· off to the department stores, or to the general merchandizing tion and Republicanism, with respect to whose partisan R~ stores, of the great cities to see if they could not find that the publican affiliations no question could be made, they saw the articles had been sold at extorlionate prices, and when they necessity of immediately finding some plausible excuse for that found they had been sold at the very same prlees which the re­ attitude on the part of this large number of newspapers tail merchant was charging for the same or comparable Ameri­ throughout the country, not only of their own party, not only can article, Senators rush in here and say, "We have made out of the Democratic Party, but of the nonpartisan press, of the our case. We have shown that an article which cost only 30 or trade press. In fact, this movement was led by the commer­ 40 cents, or, we will say, a dollar, has been sold at retail cial papers of New York and Chicago, and by the Republlcan for $15." papers of those cities and of other large centers. And so, Mr. Mr. President, before I get through I am going to show an President, the SenJltors from North Dakota and Indiana are American product in common use in this country which sells simply using the department stores and the importers as the at retail everywhere for $5, but is sold at wholesale for 19 evidence in their indictment against the newspapers of the cents. Ilepublican faith in this country. I say that their evidence They exhibited .A.pollinaris water, cabbage seed, leather belts, has broken down as against the importers and the department toothbrushes, amber beads, bird cages, hair dye, a foot rule, stores. padlocks, and a monkey. :Mr. Presi~ent, what has the Republican side of this Cham­ Mr. CARAWAY. Mr. President, I have been informed that ber to say with respect to the evidence which the able Sena­ among the ·interesting things they yet have to bring on in this tors representing the majority of the committee have presented circus is a roulette wheel. They seem to think that is one ot here in an effort to convict the newspapers of the United States the necessary household utensils. They also have in the room of corruption and of bribery through advertising? Where is below the statue of a lady minus ber clothes, and a bottle of the evidence? prunes. I do not know who is to be ringmaster when that par­ Mr. President, has a more serious charge than that ever been ticular cirClls is brought in, but how appropriate it was that framed or presented in the American Senate-a charge that the the :first circus opened with a cuckoo. That is a bird which great newspapers, tlie chief sources of public information, con­ lays its eggs in some other bird's nest, and how appropriate it stituting as they do one of the Republic's chief safeguards, have is to open a tariff discussion with a cuckoo. The next opened suddenly fallen from their high estate and surrendered their with a monkey. If they want to slander their ancestors by editorial and news columns to an unworthy assault upon a bill auctioning him off, I suppose they have a right to do it. presented and sponsored by the party to which they belong and Mr. PO.MERENE. Where was the organ grinder? which they have so faithfully served in the past? I think no Mr. CARAWAY. The Senator 1.rom Indiana was the organ more serious charge than that was ever presented in the Ameri­ giinder. I am sorry he is not present, but unless there is some can Congress; and now, Mr. President, I ask what is the evi­ organ for him to grind be never is here. dence upon which the majority side of this Chamber seek to It strikes me, if I may interrupt the Senator from North convict the Republican press of this country who are opposing Oaro1ina, that it is appropriate for a party which has become so their bill of this infamous charge that they have leveled against absolutely helpless that the papers of its own faith a.re de­ it? Where is the evidence? nouncing it for its inc<>mpetency to open a show he1~e in tbe I say here now, and I chal1enge successful contradiction, that Senate with a cuckoo and conclude it with a monkey. They are up to this time there is not one particle of e-vidence to sustain so typical, so entirely typical, of the capacity and the perform­ this charge against the newspapers of the United States except ances of the party. I am sure that the people who elected them the bare, unsupported statements of those who have made the will appreciate that they have run trne tO' form. charge in the Senate. Therefore, I ask, have you proven your Mr. SIMMONS. Mr. President. is it not a little strange case? You certainly have not proven it as against the importers that as to all of these little toy articles which were brought as to prices or against the department stores as to prices. here, none of them except the tablecloth, the napkins, and the Where is your evidence to establish your charge-a charge that gun are of common use among the peop\e? If they are, they involves and presupPoses almost unspeakable venality on the are items of trifling consequence, and it is upon such articJes part of a large and influential part of the press of the Repub­ as that, as we all know, that tbese profiteers make their great­ lican Party? est exactions. That is a matter of common knowledge. They Yet, Mr. President, to support these two charges, one against selected a lot of articles upon which there is always profiteer­ the imPorter and the second against the newspapers, Senators ing, because the people have D() knowJedge of the cost of the e on the other side, who profess to be so anxious to facilitate the little things, and therefore the retailer can take advantage of consideration of this bill and have so little time to devote to them, and the retailers and the drug stores-I do not mean all discussion and explanation, hav~ taken two or three days' time of them, but a part of them-from time immemorial have been trying to make out a case. That was the only object and pur­ in the habit of figcning very much greater percentage of profits pose of the two spectaClllar speeches we have had and the two in fixing tbe retail prices of these little articles of tbe character 1922. CONGRE~SIONAL RECORD-SENATE. 9157 the Senators on the other side have brought into the Senate Mr. SIMMONS. Mr. President~ I do not want to take too than they figure upon more important articles. much of the time of the Senate. I have not had an army of It was not necessary for these gentlemen to brin.g these appraisers at my command to send out to get me exceptional articles in and exhibit them. They can be described without and freak articles which do not represent anything of conse· exhibition. For the purpose of making this argument and qu.ence to the trade life of America in the requirements of the this comparison, why did they not select some of the essential people and are but a small item in connection with their living and staple things of life, things about which the people are expenses, items the price of .which at retail ordinarily are not suppo ed to have know ledge of the original cost and the ulti· at all in harmony with ordinary prices obtaining as to staple mate cost to the consumer, and are therefore able, by reason products and representative products. I have not had any ap­ of having some degree of familiarity with both prices, to make praisers to do that for me. I have not scoured the country to a comparison for themselves? get some illustrations here of prices that so shock the common If they were not go-ing to do that, they owed it to the Senate, sense that everybody recognizes that they are not real trans­ as I said a little while ago, at least to furnish us a statement actions. of the facts with reference to the commercial transactions in The Senator spoke about the gun which he displayed. That these articles which they exhibit, or use for illustrati<>n, which gun sold for a dollar. Think of it, Mr. President. A fairly information is essential to enable us and the country to de­ good stock, a fairly good barrel, that gun could be manufac­ termine whether the importer or the department store is prof­ tured and sold for $1 in Germany, but when it comes over iteering any more in connection with the foi;eign article than here the gullible American purchaser has no more common sense with reference to the domestic article, so that we might be than to pay $15 for the worthless thing. This sort of spread able to determine whether the importer is any more of a crimi­ in prices as to these freakish articles needs no answer, because nal than any other American retail or wholesale merchant. the common sense of mankind answers and says they are not The Senator from Indiana, selecting :m article sold by Mc­ representative articles, and a great party should not descend to cutcheon, of New York, claimed that Mccutcheon had declared the level of seeking to palm them off as representative. They that if the duty on linen were doubled-raised, I thlnk, from will not succeed in doing that, because the American people are 30 to 60 per cent-the retail price of linen towels would prob­ intelligent, and I do not think any Senators are being deceived ably be advanced by reason of that increase from $6 a dozen unless they want to be. to $7 a dozen; and the Senator said that advance was not Now, Mr. President, we have heard a great deal about justified by the increase in the rate. It may not be altogether watches. While I have nobody to search out anything for me, justified by the increase in the rate, but it is very nearly justi­ I am beginning to receive articles from people who feel that a fied by the increase in the rate. The foreign selling price, ac­ fraud is being practiced on the American people and an unwar­ cording to the Senator, was three dollars and eighty-odd cents, ranted assault made upon the very sources of our information. I think. Adding 30 per cent to that would increase it a dollar. I have here in my hand two watches. They are exactly a.like. But suppose the duty did not cover the advance in the price this They are of the same commercial value. One of them was made great mercantile house anticipated might occur and would in Germany and the other was made in this country. We saw occur; does that prove that that department store is profiteer- a watch here the other day that was sold, according to the ing with respect to this particular article? . statement of the Senator who presented it, for something Does the Senator know whether he paid more or less for his around a dollar, maybe a little less than a dollar; that is, the napkins than the invoice price? I think it was just one sale. foreign-landed cost was about a dollar and it sold in the I do not know when that sale was made. Does he know American market, as alleged, for some outrageous price, I have whether Mccutcheon made the sale out of the present stock, forgotten what, but perhaps $8 or $10. Here are these two probably as the :result of recent purchases, and paid only that watches. I am going to read what the man said who sent these amount or paid more. than the foreign landed price which he watches to me as to each of them. gave? I think he does not. I think he probably would :find This communication is from Mr. Edward J. Gall, of Paul thnt the foreign prices have increased very much in recent Forbriger & Co., of New York. He sends me this letter in con· months. nection with the watches: But leaving all that out, assuming that they have not in­ Nmw YonK CITY, June 7, 192Z. The Hon. F. M. SIMMO ~s, creased, assuming that the advance _in prices is greater than United States Senate., Washington, D. 0. the duty would justify, what does that prove? It proves the DEAR Srn: As we see from the press the active interest you are tak­ charge that has for long, long years been made against a high ing in all matte.rs of the tarift'. permit us to point out to you a speeifl.e protective rate, a charge that actual experience has borne out. in.stance in which the proposea1 rates are excessive. Put a duty upon almost any product that is imported in large We are inclosing duplicates of invoices showing that we sell an lm­ P-Orted watch at 65 cents and 67~ cents. Our price to the jobbing trade quantities and the price of the American product will at once on this imported watch is 721 cents, and in larger quantities 671 respond, and in many instances, instead of adding simply the cents. On only two occasions have we sold it at 65 cents, and then full to meet domestic competition. A watch sim1lar to this foreign product, amount of the duty, they will use that duty as an excuse made in this country, is sold as low as 60 cents. to advance the price far more than the amount of the duty. The proposed new tariff on watches impos~ a duty of 75 cents on all That is a matter of common knowledge and common experience. watches having less than seven jewels, and this covers both men's Part of the advance is justified and part of the advance is not watches and ladies• watches. We question whether the intention was to make this duty apply to the so-called 0 clock " watches, a cheap justified. That is one of the tricks of trade, Mr. President. I form of construction, difl.'ering entirely from that of the ladies' watches, do not say that of all, but in many instances. Wherever a good which are imported in 1 jewel, 3, 5, and 6 jewels. If a duty of 75 cents excuse is given for an advance of a certain amount, that ex­ apiece is imposed on the cheap "clock" watches, to whlch. we are r~ fening, the duty itself would be greater than the selling price of the cuse will be availed of for the purpose of making an ad­ American watch, which is evidently unwarranted. So-called " clock,, vance to a far greater amount, especially where, as in the case watches are largely used by workmen and boys, and it does not seem of the tariff, the consumer who is victimized p.as no opportunity reasonable to force them to pay very much higher prices by a mea.sure wbich collects, in the form of specific duty, the total selling value of or means of ascertaining whether be has been mulcted only to the American product. the extent of the tariff or has been mulcted far beyond the Respectfully yours, tariff. PAUL Fonnnrnn & Co., Of course, Mr. McCutcheon is going to sell that merchandise Per Enw ARD J. GALL. in competition with other merchants. Mr. McCutcheon has got Now, then, Mr. President, I have another letter from him a to charge at retail for his products practically the same as the little later on in response to a letter which I wrote him, as fol­ other merchants charge. lows: N1.rw Yoas: CITY, June 13, t!Jtt. If the spread was too great for the duty, and I do not think The Hon. F. M. SIMMONS, it was much too great, he presumed upon the very fact that United States Senate, WaBhington, D. a. sometimes. more often than otherwise, more is added than the DEAR SIR: As requested in yours of June 10, we have sent you a tariff duties would justify. sample of the American watch manufactured by the m. Ingraham Co., Bristol, Conn.- Mr. POMERENE. Mr. President, the ~nator has been dis­ cussing the duties on linen. I do not care to interrupt him There is the place to go, Mr. President, if you want to find now if he does not desire an interruption-- ' cheap products. They only become very costly, these Con­ Mr. SIMMONS. I would very much prefer that the Senator necticut products, when they want tariff protection- would allow me to proceed. and sold Ullder the trade-mark name of "Viceroy,'' also a sample of the German watch that we have been importing. Both of these Mr. POMERENE. I shall do so, of course. I have a letter watches are of equal value in the wholesale as well as retail trade. bearing upon that subject from the proprietor of a large hotel The American watch also has the advantage ol having an inde­ Mr. SIMMONS. I would be glad if the Senator would pnt structible crystal over the dial and not an ordinacy glass crystal ~hat is easily broken. it in the RECORD after l shall have concluded my speech. We attach the original paid bill. dated March 7, for the Amerk.-an Mr. POMERENE. I shall do so. watch, showing a. price of 65 cents at that time. Since then the '9158 CONGRESSIONAL RECORD-- SEN.ATE. JUNE 22,

prices have been reduced again and they are now being sold to the wholesalers by the manufacturer at 60 cents each. Committee of the Senate stated to me to-day that he had occasion We also attach a page from the trade paper of the Jewelers' Cir­ to buy a certain article of medicine very frequently, and that ' cular of April 26, showing an advertisement by a wholesale distributor the retail price was so high he concluded that he would investi­ in New York-not a manu!acturer--offering American guaranteed watches at 70 cents apiece. gate and ascertain the first cost of the elements that entered We hope that these facts will be of good service to you, and 1t shows into that medicine; that he made his investigation, and that he Jllainly that a duty of 75 cents apiece on cheap watches will abso­ found that the actual cost was only 11 cents; and yet he bad lutely eliminate the further importation thereof. We also trust that to pay, month after month-for he used the article frequently­ you will endeavor to have -the duty rate on low-priced watches altered, 110 that it will still be possible to import them and compete with $2.68, as I remember, for that medicine, which cost to produce American watches that are being sold at 60 cents each. but 11 cents. Respectfully, I say that in connection with this bill we have nothing to do PAUL FORBRIGllB & CO., Per EDWARD J. GALL. with retail prices, and any man who knows the A, B, C's of the tariff knows that retail prices have nothing to do with it. This [exhibiting] is the .American watch and here is the bill Senators may make an argument as to prices in connection Of sale: with the tariff, but they know as well as I know that the only [Established 1835. The E. Ingraham Co., manUfacturers of clocks and sensible comparison under the theory of their bill is between the · watches, Bristol, Conn., U. S . .A.] landed cost plus the duty and the American manufacturer's Date: March 7, 1922. - Sold to B. Raff & Sons, 233 Fifth Avenue, New York, N. Y. cost, not the wholesaler's cost, because if we are going to take Order No. P-2686. Your order of 2/16/22; 1 box, weight 98 lbs.; the wholesaler's cost we have got to add the importer's profit shipped via express; examined, W. J. L. on the foreign article, for the wholesaler's profit is added to the Nos. 022/24. Box, 1. American manufactured article. We have either got to con­ Watches, 504. sider the difference between the price of the imported article, Terms: Net 30 days-no discount-f. o. b. Bristol. Viceroy, 65; without the duty, and the price of the American manufactured ;327.60. article, or the difference between the price for which the importer That was with reference to the American watch. Now, I sells his article, with the duty added, and bis profit added, and want to read data with reference to the German watch. Here the price for which the American wholesaler sells the American is the invoice: article with his profit added. [Paul Forbriger & Co., importers, 35 East Tenth Street, New ·York, May 5, 1922.] The use of any other figures for any incidental purposes. if Sold to Southern Bargain House, Richmond, Va. there be the slightest attempt to connect them with the tariff, Terms, 1 per cent 10/ net 30 days. is a dishonest argument and one that should not be given any Route via freight. consideration whatsoever. One hundred and eighty-nine pieces No. 201 Umpil"e watches, at 65 cents, $122.86. Mr. President, I have here a very remarkable letter that I Order No. 4203. received the other dav. and also a safety razor. It is suggested Tbis is to certify that the above is a correct and true copy of its original. to me that if I thought it was not a good razor I could try it. PAUL FORBRIGER & CO. It is being extensively sold as an American p··oduct. This letter E. J. GALL. to me is a copy of a letter that the writer says he sent to the Sworn to before me this 13th day of May, 1922. Senator from North Dakota [Mr. McCUMBER] on June 15. 1922, [SEAL.] JOHN F. VALENT, but it is mighty certain that the Senator from North Dakota Notary Public, Neto York County. has never presented this Jetter to the Senate. He certainly did That is sworn to by Mr. Gall, who sends me these papers. not present it the other day in connection with his argument on That is the imported watch. The invoice for the American razors. He says: watch is not swom to, but on the margin is printed "Paid, F. El. LON,\S, April 28, 1.922." 5~ Washington Square, New York, June 15, 19t2. Hon. F. M. SIMMONS, That is die reason, Mr. President, I wanted the Senator from United States Senate, Washington, D. a. North Dakota to bring comparable articles. These are two DEAR Elm: Inclosed please find copy of my letter of this date to Hon. comparable articles-they are practically identical articles; PORTEU J. MCCUMBER, United States Senator from North Dakota, on the subject of razors. I think you may find this information of in­ one is produced in Germany and the other produced here; the terest, and in case the Elenator from North Dakota should not feel transactions are both recent, and the watches sell in the .Ameri­ disposed-to enlighten the Senate on this subject- can market at the same price. .And he has not, Mr. President- . Mr. OVERMAN. For what do they sell at retail? perhaps you may like to do so, and you are at liberty to use this letter Mr. SIMMONS. I do not know for what they sell at retail. for that purpose if you so desire. I am giving only the wholesale price. The Senator from North Dakota referred to watches which he said came from Germany I am now going to read a copy of the letter that this gentle­ which sold for a dollar .there, but which he said retailed at man, who is Mr. F. E. Lonas, wrote to the Senator from North eight or ten dollars. I do not know at what price these watches Dakota: F. El. LoNAS, retail, but I know that this German watch and this American 53 Washington Square, New York, June 15, 1922. watch are sold at wholesale by these parties at the same price. Hon. PORTER J. McCUMBXR, .At what price they are sold retail I do not know ; they may re­ United States Senate, Washington, D. 0. tail at $5, $10, or $20 ; there may be a spread between these DllAR Sm: I was much interested in reading in the New York Times of this morning of your efforts to enlighten the Senate and the people price~ and the retail prices as big as the spread wh!ch ~he Sena­ of the United States on the subject of profiteering in various imported tor from North Dakota disclosed the other day with reference articles. I noted with regret, however, that you were unable to supply to the watch which he exhibited. any information as to the cost and selling price of competing articles I should not be at all surprised if that were true, because made in this country- everybody knows that there is astounding, almost unbelievable, He has struck the vitals of this whole controversy- profiteering going on in this country on the part of many re­ and feeling sure you would be glad to have this information to submit tailers. I believe by a little search I could find a hundred cases to the Senate and the public at large, I am writing to give you some specific information with reference to one of the articles in question, right here in Washington where the retail price is 1,000 or 1,500 viz, razors. I note that you exhibited a razor which you stated cost per cent higher than the price received by the original pro­ 21 cents abroad. I happened a few months ago to be in the office of ducer or manufacturer. That bas nothing to do with the an acquaintanre connected with a very large manufacturing concern in this city and he had on his desk at the time the various parts of tariff; but that fact acquits the importer, for it shows that the a Gillette safety razor. I asked him what he was doing with it in American seller of the .American product is charging equally his office, and he replied that they had been asked to figure on a large high prices. order. I asked if they had secured the order, and be replied that they had not, as some other manufacturer· bad submitted a lower bid. I Mr. KING. Will the Senator from North Carolina yield then asked what price he had submitted, and he replied, 19 cents to me? for supplying all the material and doing all of the work necessary to l\Ir. SIMMONS. Yes. make a complete razor. This, of course, included profit to bis firm in the price submitted. You doubtless know that some millions of these l\Ir. KING. I desire to observe that, as I recall, my colleague, razors- the senior Senator from Utah [Mr. SMOOT], has on more than one occasion referred to the enormous profits whleh were being These Gillette razors offered in large quantities by this manu­ made by the retailers in the United States. The charge has facturer, who was unable to sell because another manufacturer been made that they were profiteering; and I have no doubt in this country underbid him- that, as to many articles which are manufactured in the United You doubtless know that some millions of these razors are sold an­ nually in the United States at a retail price of $5 each. States ·and sold by the manufacturers for a low price when they I have no doubt that you will be glad to have this Information, finally reach the ultimate purchaser the spread is several hun­ 1 1 dred per cent, and, in some instances, more than 1,000 per cent. ;i!~chto i~pnar~sWfo Ytiue i~e:~t~ f~eiiueco~~~~~- angs t¥a~b~~1!1yedil/ro1: the pr~ss report Senator SIMMONS desired this information, I am Mr. SIMMONS. I desire to state to the Senator from Utah sending him a copy of this letter in the same mail as the original that a Senator who is a member of the majority of the Finance to you. 1922. CONGRESSIONAL RECORD-SENATE. 9159

l\lr. KING. That would be several hundred per cent profit, l\Ir. SIMMONS. No. I know nothing except the facts th-at I over a thou.., and per cent profit, would it not? have given. Mr. SIM"110NS. I should say so, though I have not calcu­ "Mr. McLEAN. Mr. JI.files says it is sold at a profit. Does lated it. We do not know ... what that underbidding manufac­ the Senator know at what profit? turer's price was, but the price of this manufacturer was 19 Mr. SIMMONS. No; I can not tell the Senator at what cents, and he lost the -0rder because another American manu­ profit it is sold; but Mr. Miles states that it is sold by the facturer underbid him. I assume that the other bid was at manufacturer, the producer, a.t a profit, and he also says-I most not higher than 18 cents. do not know whether the Senator from Connecticut has .any l\1r. President, I have here [exhibiting] a knife. A German information about that or not-that he has a knife made in a knife was exhibited. here the other day by the Senator from Connecticut factory which sells f .J r 7 cents each, one of a little North Dakota. Tbe size of that German knife was just about po.orer quality, with only one blade, which sells for 5 cent.a the _ame as this. This knife has a gold-plated band.le; that is each. That is what Mr. Miles says. to say, it claims to have been dipped in gold. I think.the dip 1\fr. McLEAN. It is too bad he did not send it on when he must have been migbty thin, but it looks just as go.od as gold. sent ..the other. The ordinary man who is not skilled in matters at that kind Mr. SIMMONS. He sent the other. migilt buy that knife for a gold-handled knife. That is an Mr. KING. Does the Senator from Oonnecticut deny it? American-made knife. It has two nice blades to it, good Mr. SIMMONS~ If the Senator from Connecticut denies springs, and is, I think, a better knife than the German knife that there is such a knife as that made in Connecticut-that which the Senator from North Dakota exhibited here the other is, the Senator's own State- -and if Mr. Miles is wrong, it day, which be said was bought by the importer for 5, 8, 9, or there is no such knife made in his State at that price_. the 10 cents-I do not recall exactly the alleged price to the im­ Senator can find that out very quickly. porter-and sold for a price-oh, I do not remember, Mr. Presi­ Mr. McLEAN. I do not know anything about it; but I doubt dent, but way up in the dollar ; $7 I think. it very much. I have here the letter accompanying this knife. The· letter Mr. SIMMONS. I am giving what Mr. Miles says, and I am reads: · sure he is an honorable gentleman. I know enough about him: Usually you would not wish to l.11ow the price of a gift but in this to say that. case it will give added interest to know t hat it was made fu an .Amer..i­ Mr. POMERENE. Mr. President, may I ask the Senator a can factory and sold at s profit, in quantities, at "9.374 cents each. question, in view of certain questions which have been asked About 9.4 cents. here? l\Ir. POl\fERENE. They were sold wholesale fOT that price? Mr. SIMMONS. Certainly. Mr. SDIMO... ,,. s. Ye ; they were sold for that price at a Mr. POMERENE. The Senator has ~erved on the Finance profit in quantities by the American factory. Nine and four­ Committee during the time that the hearings were held. To tenths cents is the factory prke. If I am asked for what it what extent did the committee try to find out the faetory cost retails I <'an not tell ; but if the 9~cent or 10-cent knife which of the various articles about which testimony was given? the Sena.tor from North Dakota showed the other day retailed l\fr. SIMMONS. Mr. President, there was a great deal of for $7, perhap this lmife retails at an equally high price. It testimony, but I think there was very little testimony that seems ridiculous to think that anybody is fool enough in this was directed to ascertaining the factory costs of any of the eount ry to give $7 for a knife of that kind: $7 is more than is products upon which duties are imposed in the tarllf bill. It gi en for 1:1.lmo t any pocketknife, but if the German knife ex­ was usually stated by the majority that in the present conardon me for just a Mr. SIMMONS. I did not read an invoice, but I will give the minute? date of the letter which I read. The letter is dated June 17, Mr. SIMMONS. Yes. 192.2, .and the knife was sent to me by Mr. H. E. Miles, president Mr. POMERENE. I have in mind a hearing before the Ways of the Fair Tariff League. He ndds : and Means Committee a good many years ago in which the If it was made in a German factory and imported at this price-- secretary of an association of manufacturers was called before the committee, and this secretary said that the men engaged in Nine cents- his line of industry were not making anything. A member of the duty would be 12 .cents per knife p lus 60 per cent, ma,k:in.g the duty the Ways and Means Committee referred to a certain company 18.6 cents, or 200 per <:ent. of which I bad personal knowledge--! am not guessing about Double the cost of the knife-- this--and asked the secretary of the association whether Mr. POMERE..."1\l'E. When it may be sold at a profit at a little th-at company had made anything. It so happened. that the over 9 cents! proprietors of this company were related to the member of the Mr. McLEAN. Mr. President-- Ways and Means Committee, and the secretary replied: " I am The PRESIDING OFFICER (Mr. MosEs in the chair). Does sure they have made nothing during the past year." It was the Senator from North Carolina yield to the Senator from common knowledge in Ohio that that company that year had Connecticut? made a very large cash dividend, and, in addition thereto, a l\Ir. snn10Ns. I yield. 100 per cent stock dividend. Mr. McLEAN. Will the Senator tell us where that knife was Mr. SIMMONS. I think the Senator will .find that that was made? a fair illustration of a good many things that happened in con­ Mr. SI1\ll\10NS. I do not know, but I will read further from nection with the hearings upon this bill; but let me go on, Mr. the letter: President. I shall detain the Senate only a very few minutes I have the same gold knife, of decidedly poorer quality, from another longer. Connecticut factory, at 7 cents eaeh, and this poorer quality, with one While I am referring to Mr. Miles, I want to read a little blac'l e only, at 3.2 cents ea.eh. If imported, the duty on this would be ln~ cents each, or 300 per cent. bit about these prices. Mr. McLEAN. Can the Senator tell us what factory in Con­ Here is an article that appeared in the Daily News Record, necticut manufactures the .knife? of New York, written by l\Ir. 1\!iles. That, I understand, is Mr. SIMMONS. No; but I can give the Senator the name of either a Republican paper or an independent paper with strong the gentleman who wrote me the letter. The letter is written Republican leanings. It publishes some statements contained by Mr. H. E. Miles, who is the chairman of the Fair Tariff in a letter written by Mr. Miles, the gentleman from whom I League, a moderate protection organization, which claims to have just quoted. I shall read a part of it. The part I shall haYe 1,500.000 members in this country. read is headed : Mr. McLEAN. I a.m acquainted with Mr. Miles and his views IGNORANT OF CONDITIONS. Our Senators must be ignorant of manufacturing conditions. This cm the question of pwtection. does not excuse them. Mr. SIMl\IONS. I am, too; and I think he is a protectionist; Now he refers to this knife: altuough, of course, the Senator from Connecticut i~ in favor ~ have a gola-handled, two-bladed penknife. The American factory of so much higher protection that he does not think Mr~ Miles price, 9.4 cents; Senate duty, 18.6 rents, or 200 per cent-the covering is a protectionist at all. real gold, handsome-you can guess how thin. A poorer quality. 5..2 re~L · Mr. McLEAN. That is for the Senator from North Carolina The ordinary new-style fiuted bread knife, 10-ineh blade, .American JD say. Does the Senator know what the profit is on that knife1 make, 6 ..5 cents. Dut:J'. 14 cents, o:r 215 per cent. 9160 CONGRESSIONAL RECORD-SENATE. JUNE 22,

Butcher knife, 8-inch blade, 8.3 cents. Duty, 14.5 cents, or 174 per 137, 138, 142, 143, 144, 181, 194, 195, 201, 210, 213, 215, 233, 237, cent. Paring knife, high-carbon superior steel, 2.7 cents. Duty, 4.6 cents, 238, and 239. or 170 per cent. Common kitchen table knife, 4.5 cents. Duty, 12.5 That the House recede from its disagreement to the amend­ cents, or 277 per cent. ments of the Senate numbered 1, 2, 3, 4, 5, 7, 9, 10, 12, 17, 18, 19, " Kindergarten " ~cissors, round ends for safety used mostly in 21, 22, 23, 25, 26, 27, 29, 32, 42, 44, 45, 51, 53, 54, 55, 56, 59, 62, schools, pre-war, 2.25 ~nts, now 5 cents. Duty, 7.25 cents, or 134 per cent. 63, 71, 74, 75, 76, 77, 78, 79, 80, 81, 82, 83, 85, 86, 87, 88, 90, 93, American safety razor with blade, shaving as well as Gillette, 5 cents. 95, 97, 99, 100, 104, 105, 107, 108, 114, 115, 116, 117, 118, 123, 125, Duty, 175 per cent. 126, 130, 132, 133, 134, 135, 136, 139, 140, 141, 145, 147, 149, Of all .American table cutlery made 1n the last three years 48 per 148, cent has been exported. 151, 152, 153, 154, 155, 156, 157, 158, 159, 160, 161, 162, 163, 164, Think about that, Mr. President, when we are being told that 165, 166, 167, 169, 169!, 170, 171, 172, 173, 174, 175, 176, 177, 178, German cutlery is flooding this market to such an extent that 179, 183, 184, 185, 186, 187. 188, 192, 193, 202, 206, 207' 209, 211, it is endangering the domestic industry and driving the manu­ 212, 217, 219, 223, 226, 227, and 228; and agree to the same. facturer out of business, in connection with the actual fact that Amendment numbered 6 : That the House recede from its after producing all that the American market will take of these disagreement to the amendment of the Senate numbered 6, and ~ products we export to the putside world, and sell at a fair price, agree to the same with an amendment as follows: In lieu of 48 per cent in competition with Germany! the sum proposed insert " $162,500 " ; and the Senate agree to Common gingham for kitchen aprons and cheap dresses made cheaper the same. here than anywhere- Amendment numbered 11: That the House recede from its And it is. I live in a country of cotton factories. It is, Mr. disagreement to the amendment of the Senate numbered 11, and President. agree to the same with an amendment as follows: In lieu of the sum proposed insert " $119,270 " ; and the Senate agree to Imports impossibl~ the same. True. Amendment numbered 13: That the House recede from its Freely ezported­ disagreement to the amendment of the Senate numbered 13, and Absolu tely certain- agree to the same with an amendment as follows : In· lieu of present duty 15 per cent, Senate 39.2 per cent. The principal manu­ the sum proposed insert "$115,000 "; and the Senate agree to facturers showed capital in 1896 $4,000,000, now $44,500,000, and $30,000,000 cash di_vidends also declared. It is reducing labor, while the same. Congress increases its tarilf 275 per cent. Amendment numbered 14: That the House recede from its • • • • • • • disagreement to the amendment of the Senate numbered 14, and I have an excellent silk fabric. from a Connecticut mill, now sold agree to the same with an amendment as fo1lows: In lieu of the in free-trade England at good profit. sum proposed insert " $30,000 " ; and the Senate agree to the Think about that, Mr. President. It is desired now to in­ same. '.'rease the present duties on silks up to 70 per cent, and on Amendment numbered 15: That the House recede from its plushes made out of silk up to 90 per cent, and here is an disagreement to the amendment of the Senate numbered 15, and ~xcellent silk fabric from a Connecticut mill now sold in free­ agree to the same with an amendment as follows: In lieu of the trade England at a good profit, and yet Senators insult the sum proposed insert "$60,000"; and the Senate agree to the people's intelligence by contending that we can not compete same. with England right here in this country with a tariff of less Amendment numbered 16: That the House recede from its than 70 per cent. disagreement to the amendment of the Senate numbered 16, and Mr. McLEAN. Mr. President, has the Senator the name of agree to the same with an amendment as fol1ows: In lieu of the the mill and the price? sum proposed insert "$3,100.000"; and the Senate agree to the Mr. SIMMONS. No; I am reading from a newspaper article, same. and it does not give the name of the mill. Amendment numbered 20: That the House recede from its Mr. McLEAN. No; I guess not. disagreement to the amendment of the Senate numbered 20, and Mr. SIMMONS. It simply says " a Connecticut mill." agree to the same with an amendment as follows: In line 4 of Proposed duty 62 per <:'ent, permitting our manufacturers, now badly overprotected to add $60,000,000 to their prices, which amount would the matter inserted by said amendment strike out "30" and be doubled at retail against consumers. Wages are 15.7 per cent of insert in lieu thereof "35"; and the Senate agree to the same. the factory sellin~ prices, or one-fourth of the proposed duty, which Amendment numbered 24: That the House recede from its pretends to be pnncipally for the wage ·earners. Aluminum ware, chinaware, glassware, pots, and kettles, and almost disagreement to the amendment of the Senate numbered 24, and everything else is like this. agree to the same with an amendment as fol1ows: Restore the Even common salt- matter stricken out by said amendment amended to read as fol­ Mr. President, I remember a time when the people of this lows: country almost rose up in arms against the suggestion of put­ "For expenses incident to completion of the work of furnish­ ting a duty on common salt- ing to adjutants general of States and the District of Columbia Even common salt, of which we have several deposits, each about statements of service of all persons from those States and the 600 miles long by 50 to 200 mil~s wide and sometimes 200 fe~t deep, District of Columbia who entered the military service during is to be given 44 per cent duty m bu1k and over 70 per cent m bags. the war with Germany, including the employment of clerical I beg the pardon of the Senate for taking up so much time, and other help in the office of The Adjutant General of the ·but I thought it very well to put some of these matters into Army, $230,000, to be immediately available." the RECORD. I have a great deal of additional matter along And the Senate agree to the same. this same line, but I could not get it segregated in time to use Amendment numbered 28: That the House recede from its it this afternoon. disagreement to the amendment of the Senate numbered 28, and Mr. CURTIS. Mr. President, I ask unanimous consent that agree to the same with an amendment as folJows: In lieu of the at the conclusion of to-day's business the Senate take a recess number proposed insert "six"; and the Senate agree to the until 11 o'clock to-morrow. same. The PRESIDING OFFICER (Mr. PHIPPS in the chair). Is Amendment numbered 30: That the House recede from its there objection? The Chair hears none, and it is so ordered. disagreement to the amendment of the Senate numbered 30, and Mr. WADSWORTH. Mr. President, I ask unanimous con­ agree to the same with an amendment as follows: In lieu of the sent that the tariff bill be tempo·rarily laid aside and that the sum proposed insert " $53,020 " ; and the Senate agree to the conference report on the War Department appropriations bill same. be considered at this time. Amendment numbered 31 : That the House recede from its The PRESIDING OFFICER. Is there objection? The Chair disagreement to the amendment of the Senate numbered 31, and hears none, anu it is so ordered. agree to the same with an amendment as follows: In lieu of the MILITARY APPROPRIATIONS-CONFERENCE REPORT. matter inserted by said amendment insert tile following: Mr. WADSWORTH submitted the following report: " Pay of officers : For pay of officers of the line and staff, $33,890,771: Provided, That after January 1, 1923, the sum The committee of conference on the disagreeing votes of the herein appropriated for the pay of officers shall not be used for two Houses on the amendments of the Senate to the bill (H. R. the pay of more than 12,000 commissioned officers on the active 10871) making appropriations for the military and nonmilitary list of the Regular Army and the emergency officers in service activities of the War Department for fiscal year ending June undergoing physical reconstruction : Provided further, That on 30, 1923. and for other purposes, having met, after full and free and afte1.1 January 1, 1923, there shall be officers as now au­ conference have agreed to recommend and do recommend to thorized by law except that there shall be 420 colonels, 577 lieu­ their respective Houses as follows: tenant colonels, 1,575 majors, 3,150 captains, 2,967 first lieuten­ That the Senate recede from its amendments numbered 8, ants, and 1,771 second lieutenants, and these numbers shall not 18!, 40, 43, 58, 66, 67, 68, 72, 73, 84, 91, 92, 98, 110, 113, 121, 128, be exceeded except as hereinafter provided ; 983 officers of the 1922. CONGRESSIONAL RECORD-SENATE. 9161

:Medical Corps, 158 officers of the Dental €orps, 126 officers of vided, and the number of officers in various grades to be con­ the Veterinary Corps, 72 officers of the Medical Administrative tinued as additional ·until absorbed as hereinbefore provided: Corps, and 125 chaplains; and the numbers herein provided Provided further, That officers shall be assigned to the several shall include the officers of Philippine Scouts who shall con­ branches of the Army so that the number assigned to any tinue to be carried on the promotion list and who shall be pro­ branch, except of the Medical Department and chaplains, shall moted to grades from first lieutenant to colonel, inclusive, in be 70 per cent of the number prescribed for such branch under the same manner as prescribed by law for other officers on the the act of June 4, 1920, but the President may increase or dimin­ promotion list: Provided further, That prior to January 1, 1923, ish the number of officers assigned to any branch by not more there shall be no promotions to grades below brigadier general than a total of 30 per cent." · · · of officers of the Regular Army except of officers of the Medical And the Senate agree to the same. Department and chaplains, and vacancies now existing in any Amendment numbered 33: That the House recede from its grade below brigadier general not actually filled by the accept­ disagreement to the amendment of the Senate numbered 33, ance of an appointment tendered prior to the date of approval and agree to the same with an amendment as follows : In lieu of this act shall not be filled, and beginning January 1, 1923, of the sum proposed insert "$1,000,000"; and the Senate agree there shall be no promotions or appointments to any grade or to the same. to the branches of the Medical 'Department or chaplains that Amendment numbered 34: That the House recede from its would cause the numbers herein authorized for such grade or disagreement to the amendment of the- Senate numbered 34, branch to be exceeded, except that the colonels, exclusive of and agree to the same with an amendment as follows : In lieu those in the l\Iedical Department and professors, remaining on of the matter inserted by said amendment insert the following: the active list on January 1, 1923, and not included in the 420 "For pay of warrant officers, $1,800,000: Provided, That no junior colonels on that date shall be canied as additional num­ vacancies in the grade of warrant officer, exclusive of warrant bers so long as they remain in that grade and shall not prevent officers in the Mine Planter Service, shall be filled until the num­ promotions due to vacancies occurring among the 420 authorized ber in such grade is reduced to 600, and thereafter the number colonels: Provided further, That officers in excess of the num­ shall not be increased above 600: Provided further, That noth­ bers authorized herein and not removed from the active list ing contained herein shall prevent the appointment of qualified by other means shall be disposed of as follows : Those of the band leaders for authorized bands: Provided further, That Medical Department and chaplains shall, prior to January 1, within 60 days after the approval of this act the number of 1923, be eliminated from the active list as hereinafter provided; warrant officers in the Army Mine Planter Service shall be re­ those other than of the Medical Department and chaplains .shall, duced to 40, and thereafter the number shall not be increased prior to January 1, 1923, be eliminated from the active list as above 4-0." hereinafter provided except that not-more than a total of 8.00 And the Senate agree to the same. now in grades from colonel to first lieutenant, inclusive, shall Amendment numbered 35: That the House recede from its either be continued as additional officers in their grades until disagreement to the amendment of the Senate numbered 35, absorbed, or those in grades below lieutenant colonel shall, in and agree to the same with an amendment as follows : In lieu inverse order of standing on the promotion list beginning with of the sum proposed insert " $950,000 "; and the Senate agree the lowest on the list in each grade, be discharged and recom­ to the same. missioned in the next lower grade prior to January 1, 1923, Amendment numbered 36: That the House recede from its and officers accepting recommission in a lower grade shall be disagreement to the amendment of the Senate numbered 36, carried on the promotion list in the positions they now occupy and agree to the same with an amendment as follows: In lieu and shall, while serving in such lower grade, take rank among of the sum proposed insert "$5,209,784 "; and the Senate agree the officers of the Regular Army in accordance with their length to the same. of service notwithstanding the date of their new commission; Amendment numbered 37: That the House recede from its and any officer shall be eligible for recommission and service disagreement to the amendment of the Senate numbered 37, in the branch in which now commissioned ; officers selected for and agree to the same with an amendment as follows: In lieu elimination of le s than 10 years' commissioned service may, of the matter inserted by said amendment insert the following: upon recommendation of the board herein provided for, be dis­ " Pay of enlisted men : For pay of enlisted men of the line charged with one year's pay; or those of more than 10 years' and staff, not including the Philippine Scouts, $56,866,399: Pro­ and less than 20 years' commissioned service may, upon recom­ vi.ded, That the total authorized number of . enlisted men, not mendation of the board, be placed on the unlimited retired list including the Philippine Scouts, shall be 125,000." with pay at the rate of 2! per cent of their active pay multi­ And the Senate agree to the same. plied by the number of complete years of such commissioned Amendment numbered 38 : That the House recede from its service ; or those of more than 20 years' commissioned service. disagreement to the amendment of the Senate numbered 38, may, upon recommenadtion of the board, be placed on the and agree to the same with an amendment as follows: In lieu unlimited retired list 'vith pay at the rate of 3 per cent of their of the sum proposed insert "$5,000"; and the Senate agree to active pay multiplied by the number of complete years of such the same. commissioned service, not exceeding 75 per cent: Provided fur­ Amendment numbered 39; That the House recede from its ther, That, of the 800 or less officers to be absorbed or recom­ disagreement to the amendment of the Senate numbered 39, missioned under the preceding provjso, a suitable number of and agree to the same with an amendment as follows: In lieu officers in grades from colonel to first lieutenant, inclusive, of the sum proposed insert " $200,000 "; and the Senate agree shall be continued as additional until absorbed and a suitable to the same. number in each grade from majo_r to first lieutenant shall be Amendment numbered 46 : That the House recede from its dis­ recommissioned in the next lower grade, such suitable numbers agreement to the amendment of the Senate numbered 46, and to be determined by the President upon the recommendation a~ree to the same with an amendment as follows : In lieu of the of the board of general officers hereinafter provided for : Pro­ number proposed insert " 7 " ; and the Senate agree to the same. vided further, That commissioned service for the purposes of Amendment numbered 47: That the House recede from its dis­ this act shall include only active commissioned service in the agreement to the amendment of the Senate numbered 47, and Army performed when under appointment from the United agree to the same with an amendment as follows: In lieu of the States Government whether in the Regular, provisional, or tem­ number proposed insert " 32 " ; and the Senate agree to the same. porary forces: Provided f1trther, That any officer of less than Amendment numbered 48: That the House recede from its dis­ 10 years' commissioned service but of more than 20 years· serv­ agreement to the amendment of the ·Senate numbered 48, and_ ice accredited toward retirement or for increased pay for agree to the same with an amendment as follows: In lieu of the length of service may, in lieu of discharge with one year's pay number proposed insert " 53 " ; and the Senate agree to the same. as hereinbefore provided, if he so elects, be appointed a warrant Amendment numbered 49: That the House recede from its dis­ officer and carried as an additional number in that grade; or agreement to the amendment of the Senate numbered 49, and he may, if he so elects, be retired with the rank of warrant agree to the same with an amendment as follows: In lieu of the officer with pay at the rate of 2 per cent of the pay of a war­ number proposed insert" 70"; and the Senate agree to the same. rant officer multiplied by the number of years of such accredited Amendment numbered 50: That the House recede from its dis­ service : ProVided further, That the Secretary of War shall agreement to the amendment of the Senate numbered -50, and convene a board of five general officers which may include agree to the same with an amendment as follows: In lieu of the retired officers, whose call to active duty for this purpose is number proposed> insert '.' 98 " ; and the Senate agree to the same. hereby authorized, which board, under regulations prescribed Amendment numbered 52: That the House recede from its dis­ by the Secretary of War, shall recommend to the President the agreement to the amendment of the Senate numbered 52, and. officers to be eliminated from the active list under the provi­ agree to the same with an amendment as follows : In lieu of the sions of this act, the number of officers in various grades to be sum proposed insert "$418,800 "; and the Senate agree to the recommissioned in the next lower grade as hereinbefore pro- same. .9162 DONGRESSION AL REOORD-SENATE. JUNE 22,

'. Amendment ·numbered 57: That tthe House Teeed-e from its dis- \ of a colonel or officer above the rank of captain, $6,000; and of agreement to the mnendment of the Senate numbered 57, and ) 'Rn officer of ruid below the rank of captain, $4,000 "' ; and the agree to the same with an amendment as follows: In lieu 'Of the : Senate agree tt' the same. sum proposed insert "$110,000 "; and the Senate agree to the f Amendment numbered 119: That the House recede from it.s srune. I disagreement to the amendment ot the Senate numbered 119, Amendment 'numbered '60 : That the House recede from its dis- 1 -and agroo to the same with ·an amendment as follows : In 'lieu. agreement to the amendment 'Of the Slillate numbered 60, and fJf the sum proposed insert H $1,825,000"; and the Senate agree agree to the same with an amendment as fOllows : In 'lieu 'Of the ·to the same. matter inserted by said amendment insert the 1'.ollowing: "For 1 Amendment numbered 120: That the House recede from its rental allowances, including quarters for enlisted men -on duty 1 disagreement to the 11mendment of the Senate numbered 120 .where .public quarters are not available, $6,097,644 "; and the and agree to the same with an amendment as follows: I~ Senate agree to the same. lieu of the sum proposed insert "$475,000"; and the Senate Amendment numbered 61: That the Honse recede from its dis- i agree to the same. :agreement to the amendment of the Senate ·numbered ·61, and Amendment numbered 122~ That the "Honse recede from its agree to the same with an amendment as follows: In lieu of the disagreement to the amendment of the Senate numbered 122 matter inserted by said amendment insert the following: "For , and agree to the same witb an amendment as follows: Restor~ subsistenee allowances, ~5,316;713"; and the ~enate -agree to the matter stricken out by said amendment and on page 49 of the same. the bill, in line 13, strike out the word ''three" wber.e it occurs Amendment numbered 64-:'That the House recede from its dis- . the second time and insert in lieu thereof "two"; and the agreement to the amendment of the Senate numbered 64, and Senate agree to the same. agree to the same with an amendment as follows: In lieu of the Amendment numbered 124: That the House recede from its matter insert.ed by said amendment insert the following: '" or at · disagreement to the amendment of the Senate numbered 124, Fort· Apache, Ariz."; and the Senate agree to the sam£!. and agree to rthe same with an amendment as follows: In Amendment numbered 69 : That the House recede from its dis- Hen of the sum proposed insert " $35,000 " ; and the Senate agreement to the amendment of the Senate numbered 69, and agree to the same. .agree to the same with an amendment ·as follows: In line 2 ·of Amendment numbered 127: That the House recede from Its the matter inse:cted by said amendment strike out "$1,617,000" ' disagreement to the -amendment of the Senate numbered 127 and insert in lieu thereof " $1,460,000"; and the Senate agree and agree to the same with an amendment as follows: fu to the same. lieu of the sum proposed insert "$12,700,-000 "; and the Senate Amendment numbered 70: That the House recede from its dis- r 1lgree to the same. agreement to the amendment of the Senate numbered 70, and Amendment numbered 129: That the House recede from its ··agree to the same with an amendment as follows: In lieu of. the disagreement to the amendment of the Senate numbered 129 sum proposed insert u $1,350,000 .. ; and the Senate agree to ·and agree to the same with an amendment as follows: I~ the same. · lieu of the sum proposed insert "$3,500,000" ; and the Senate Amendment numbered 89: That the House recede from its agree to the same. disagreement to the amendment of the Senate numbered 89, and Amendment numbered 146: That the House recede from its agree to the -same with an amendment as follows : In lieu of . disagreement to the amendment of the Senate numbered 146 the sum preposed inse-rt " $16, 750,000 " ; and the Senate agree and agree to the same with an amendment as follows : I~ to the same. lieu of the smn proposed insert "$213,880"; and the Senate Amendment numbered 94 : That the House recede from its ' agree to the same. disagreement to the amendment of the Senate numbered 94, and Amendment numbered 150: That the House recede from its agree fo the same with ,an amendment as follows: In lieu of disagreement to the amendment of the Senate numbered 1.50, the sum proposed insert " $11;500,000 "; and the Senate agree and agree to the same with an amendment as follows: Tn ta the same. 1ieu of the sum proposed insert " $95,000 " ; and the Senate Amendment numbered 96: That the House recede from its agree to the same. Uisagreement to the runendment of the Senate 'numbered 96, and Amendment numbered 188: That the House recede from its agree to the

Mr. WADSWORTH. The only one of any importance in dis­ rate, to have the appropriation made immediately available. agreement technically is the appropriation of $7,500,000 for I feel that in the next blll the matter will be taken care of and continuing the building of Dam No. 2 at Muscle Shoals. That the appropriation provided. So I consented to the recession is reported in disagreement. We are given to understand, from that item. however, that the House conferees do not object to it. but, Mr. WADS WORTH. Mr. President, I think it is my duty to under their system of rules, and their general understanding the Senate to mention the two remaining technical disagree­ with their colleagues of the House,. they felt it to be their duty ments. They are not important, but perhaps they should be to bring that back to the House for a separate vote,. and the stated for the RECORD. only way to bring it back for a separate vote is to report a The House appropriated something like $4,000,000 for lon­ disagreement. gevity pay for enlisted men of the Army. The Senate appro­ The others are exceedingly slight in importance. ~or ex­ priated a smaller amount, due to the reduction of that item by ample, there is one amendment providing that the appropriation the new pay law. When we got into conference, we found that for pay of the Army shall be administered as and shall con­ we required even less than the Senate amendment provided for, stitute one fund, with a certain limiting proviso that the but as conferees are required to stay within· the limits of the fUnds shall not be used in any such way as to pay more per­ House and Senate provisions on such items, we must ask the sons in the Army than the specific appropriation provides for. House to take an even lower sum than the Senate provided, Another one is a small matter, authorizing the Air Service which is lower than the House item. to enter into the same kind of contracts in the _purchase of The other amendment is with respect to the quarters which supplies as the Quartermaster's Department, the Signal Corps, are to be built at Fort Benning. The Senate provided that and the Engineers now use. the money for that purpose could be used for the building of The other is an amendment allowing all the items under the apartment houses. not to cost in excess of $150,000, and to head " Pay of the Military Academy " to be administered as house 18 families. The Senate passed it in that form. 'l'he and to constitute one fund. In the item " Pay of the Military House conferees desired to accept that limitation upon the ap­ Academy t each and every man paid is listed in the bill, a.nd propriation, but it is necessary, under their rules, to take it his salary is fixed. E~ery salary is fixed by statute, and the back to the House, because under th~ir rule it is legislation. statute controls the number absolutely. So the Senate proposed The PRESIDING OFFICER. The question is on ag1·eeing that that shall be administered as one fund and thus save a to the conference report. vast amount of bookkeeping here in Washington. The House The report was agreed to. conferees, believing that that is legislation, under the House PRICES OF' CRUDE OIL A.ND GASOLINE. rules, are going to take it back and ask the House to concur. There is another item of very minor importance. Under the Mr. LA FOLLETTE. Mr. President, the supply of copies of existing law, when men of the Army die outside of the United Senate Resolution 295 has been exhausted in the files of the States or on Army transports, the Government pays for th-e document room. The Committee on Manufactures requires transportation of the bodies to be brought home. We insert in copies for the use of the committee to send out to certain oil the bill a provision that the same shall apply to Army nurses companies. I ask unanimous consent that an order be entered who die under similar circumstances. for a reprint of 1,000 copies for the use of the document room. The Medical and Surgical History of the War is now being The PRESIDING OFFICER. The Senator from Wisconsin prepared under tb.e direction of the Surgeon General of the asks unanimous consent that 1,000 copies of Senate Resolutjon Army. We want that done under a separate appropriation, and 295 be reprinted. Is there objection? The Chair hears none, in order to have that done the Senate conferees yield and con­ and it is so ordered. · cur in the House proposal that it shall be done under a separate :MILITARY ROAD, D"ISTRICT" OF COLUMBIA. appropriation, rather than to tp.ke it out of the general appro­ Mr. JO~"'ES ot Washington. While the tariff bill is tetn-po. priation for the support and maintenanace of hospitals. rarily laid aside, I ask unanimous consent to call up the bill Then there is another amendment. To-day the National Home (S. 3315) changing the name of Keokuk Street, in the county for Disabled Volunteer Soldiers receives part of its maintenance of Washington, D. C., to Military Road. The chang~ ot name fund from the Veterans' Bureau and the rest of its maintenance is desired by those living on both sides of the street. A part fond by a direct appropriation carried in this bill. The con­ of it is called Military Road and a part Keokuk Street, so- that ferees of both Houses believe that that is an exceedingly nn­ it causes a great deal of confusion. businesslike method; that the soldiers' homes should be sup­ Mr. HEFLIN. Will it lead to discussion? ported by specific appropriations sufficient to maintain them in Mr. JONES of Washington. It will lead to no diseussion. their entirety, and that no lump sum should be handed over by There being no objection, the bill was considered as in Com- the Veterans' Bureau to the soldiers' homes. We can not cure mittee of the Whole, and it was read, as follows : the situation for the coming fiscal year, because the Budget Be -it enacted, eto., That the name of the street known as Keokuk estimates were prepared upon that basis, but we desire to have Street NW., extending from Military Road at Twenty-seventh Street inserted in the bill a provision that for the fiscal year 1924, and to Wiscon-sin Avenue. be, and the sam.e shall henceforth be, known aa Military Road. And the Commissioners of the District of Columbia thereafter, the Veterans' Bureau funds shall not be handed over are hereby directed to cause the name of Military Road bom Military to the soldiers' homes for the support, or partial support, of Road at Twenty-seventh Street to- Wisconsin Avenue NW. to be placed those homes. · upon the plats and maps of the District of Columbia. Mr. KING. Is the report unanimous? The bill was reported to the Senate without amendment, l\fr. WADSWORTH. It is. unaninwus on the part of the ordered to be engrossed for a third reading, read the third time, Senate, one conferee on the part of the House not signing the and passed. report. MEMORIALS. Mr. JONES of Washington. Mr. President, I desire to say Mr. MOSES presented a resolution adopted by the Colebrook just a word about one of the Senate amendments that was not Woman's Club, of Colebrook, N. H., which was referred to the agreed to· in conference. Committee on Finance and ordered to be printed in the RECORD, The Senate pnt upon the Army bill an appropriation of as follows: $1,500,000 to replace the Alaskan cable. A measure for that Resolved, That we protest against the foo<11• tableware., and women's­ purpose has passed the Senate twice. The Senate has gone into wear schednles of the Fordney-McCumber bul. These schedules will increase the costs of living in every American home. They are fines it very carefully, and the committee considered the need of re­ levied by .American men upon American women and upon American placing that cable as very imperative, and the Senate ratified children. They should not be allowed to become law. the view of the committee. Mr. MOSES presented resolutions adopted at a mass meeting I fear that our failure to have this item agreed to will be held on Sunday, June 18, 1922, of citizens of Manchester, N. H., very bad, if not calamitous. The House conferees, however, ap­ which were referred to the Committee on Foreign 'Relations parently had not gone into the matter very fUily and carefully, and ordered to be printed: in the RECORD, as follows: and so they would not yield upon it. It was the last amendment Whereas four years after the Great War the systematle extermina­ disposed of in the conference. tion of tbe Christians of Asia Minor is still being pursued by the Turkish Government of Angora with unabated ruthlessness. which will As I said, the Senate conferees receded. I regret very much result in the virtual extinction of the Armenian and Greek populations that we did so, but I think I violate no confidence when I say of Anatolia; and that the members of the conference on the part of the House Wbereas the latest cecisions of the Allied Governments propose to hand back to Turkey anothe:r million of Christians but recently deliv­ individually assured the Senate conferees that in the prepara­ ered from Turkish oppressi(}n : Be it hereby tion of the military appropriation bill next winter they woul.d Resowed, That this meeting protest to the civilized world against the look into the matter very carefully, and, if the need appeared c.ommission of such an abominable· outrage and extend its heartfelt sympathy to the Christians of the Near East who are thus threatened to be imperative, as we tried to show them, they felt satisfied with complete extermination, and pledge to them its unstinted material that the bill would take care of it-that is, 1! they were con­ and moral support fn their strenuous resistance to the return of Turk­ vinced of the need of it, they would use their in1luence, at any ish tyranny; be lt further 1922. CONGRESSIONAL RECORD-SENATE. 9165

· ReQolved, That this meetin~ express the conviction that the continued Confederate Veterans of cots for the use of the members of presence of the Greek Army rn Asta Minor is th.e most efficacious guar­ anty for the safety of the Christiana and othe:t non-Turkish minoritiea; the United Confederate Veterans during the sessions of the na­ and be 1t finally tional encampment of the United Confederate Veterans at Rich­ Re8olved, Tbat this meetlng e~ress its grateful al)preciatlon of the mond, Va., from .Tun.e 19 to 22, 1922. efforte of. the British Government and the later decision of the United / States Government to bring the Turkish· horrors to the knowledge of On .Tune 19, 1922 : tll& cfrihzed world. S . .T. Res. 7. Joint resolution authorizing the Secretary of GEO. E. TRUDJ!IL, Jla'Jlor. the Treasury to designate depositaries of public moneys in for­ Right Rev. El>WABD M. FARKU, HOBART PILLSBURY eign countries and in the Territories and insular possessions of (For Gov. Albert o. Brown). the United States. Dr. A. S. MANGURIAN. D. D. Gan.u:B. HOUSE BILL REFERRED. Gmo. L. KIBB:U.. The bill (H. R. 12073) to provide additional compensation FRANK KNOX. C. W. TOBEY. for certain civilian employees of the Governments of the United States and the District of Columbia during the fiscal year end­ ENFOBOEMENT OF CUS'l'OMS LAWS. ing June 30, 1923, was read twice by its title and referred to Mr. McCUMBER, from the Committee on Finance, to which the Committee on Appropriations. was referred the joint resolution (H. J. Res. 344) to authorize the Secretary of the Treasury to detail four persons paid from THE TA.RIFF. the appropriation for the collection of customs, reporterl it with­ Mr. HEFLIN. Mr. President, I shall consume but little time. out amendment and submitted a report (No. 780) thereon. Mr. CURTIS. Will the Senator allow the regular order­ BILLS AND JOINT RESOLUTION INTRODUCED. tbe tariff bill~to be laid before the Senate? Mr. HEFLIN. I have no objection. Bills and a joint resolution were introduced, read the first The Senate, as in Committee of the Whole, resumed the con­ time, and, by unanimous consent, the second time, and referred sideration of the bill (H. R. 7456) to provide revenue, to regu­ as follows: late commerce witb foreign countries, to encourage the indus­ By Mr. CAPPER: tries of the United States, and for: other purposes. A bill (S. 3734) for the relief of Benjamin F. Burch; to the The PRESIDING OFFICER. The Secretary will state the Committee on Military Affairs. pending amendment. B:v Mr. WATSON of Indiana: The AsSISTANT SECRETARY. The pending amendment is in A. bill ( S. 3735) to amend an act entitled "An act to supple­ paragraph 329, page 64, line 15, where the committee proposes ment existing laws against unlawful restraints and m•)nopoli~s. to strike out the figure " 1 " before the word " cent " and insert and for other purposes," approved October 15, 1914, ';)y amencl­ in lieu thereof " seven-eighths of 1," so as to rea.d: ing section 10 thereof; to the Committee on Interstate Com­ Chain and chains of all kinds, made o! iron or steel, not less than merce. three-fourths of 1 inch in diameter, seven-eighths of 1 cent per pound. By Mr. SUTHERLAND: Mr. SHORTRIDGE. Mr. President. I hold in my hand an A bill (S. 3736) granting a pension to Clarence G. Stone­ editorial which appeared in the Evening Mail, a New York street· to the Committee on Pensions. journal, on the subject of the tariff, entitled " Why the tariff A bin (S. 3737) to correct the military record of Claren~e bill should pass.'' It is a very thoughtful article on the mearmre G. Stonestreet; to the Committee on Military Affairs. pending before the Senate, and I ask consent that it may be By Mr. LODGE: printed in the RECORD. A joint resolution (S . .T. Res. 214) to authorize the expen~s There being no objection, the editorial was ordered to be for delegates to the Pan-Pacific Union; to the Committee un printed in the IlECORD, as follows: Foreign Relations. . [From the Evening Mail.] TA.RIFF BILL AMENDMENT. WHY T.Hll TAIUFIP Bl.LL SHO,,JJLD PASB • Mr. JOlli~SON submitted an amendment intended to ue pro­ .A tariff far protection is a tariff. for the American people and for .American prosperity. posed by him to House bill 7 456~ the tariff bill, which was re­ It has been tested time and again and has never failed. ferred to the Committee on Finance and ordered to be printee of the American wage. earner under a protective tariff always can1es more contentment, better living conditions and the United States, or actually representing it, officially or un­ greater individ.nal po.ss:i.bilitie than any other pay envelope anywhere. officially, on the Reparation Commission are being paid for Every Democratic free trade law ever enacted has sooner or later their services by Germany or amounts coming from Germany. forced industrial depression and panic; every protective tarHr law bas encouraged industrial expansion and ereated prosperity. I want to secure full information in regard to that matter, Whenever the- Republican Party has been given power in the Nation the number of employees and the amount . paid to -each, and it has been because its fir&t pl'inciple is,. through protection, to assure whether any officials are officers; and if so, whether they are stability and prosperity to our farms and factories. .A Republican Congress has always met that exper.tatJon as tts most immediate duty. drawing double compensation. This Congre has delayed too long performing that duty. It should The· resolution ( S. Res. 309) was referred to the Committee have enacted a tari.t! law months ago. Farmers kMw, indeed the country knows, what the emergency tari:l'f, passed a year ago, has done on Foreign Relations, as follows: to put our farmers back on the road to prosperity. It provided them Re.solved, That ·the Secretary of State is requested to report to the with a market. Our industries are entitled to the same helpful legis· Senate the names of any official or so-called " unofficial" representa­ lation. The Republican Congress is a. year late in according it to tives of the State Department accredited to tbe Reparation Commis­ them ; Jt i~ now time f.or action. sion or pre.ciuming to act for the United States in dealing with the The Senate is malting progress with such a bill. It 18' !rankly a Reparation Commission, together with a statement of. the instructions measure designed to protect American industries. That is as it should under which said persons may be acting or pretending to act f.or the be. It is no better and no worse than every other protective ta.ri.ft'. ever Government ot the United States, and also a statement of the salaries enacted. Flaws can be found in it, of course. Every revenue law has and aUowa.nces made to said persons and by whom pa.id, and further them. The· great Democratic ta.ri1f law of the Cleveland administra­ as to whether or not officers of the Army have been attached to said tion was denounced by Mr. Cleveland fill "a ba~j~i~f pa.rty perfidy and Reparation Commission or have been delegated by the State Depart­ dishonor," and Senator Calvin Brice, himself. man of the Demo­ ment to repre ent the Government in dealiug with the Reparation cratic National Committee, graphicallr described the scenes in the Commission, and whether or not such officers have been permitted to Senate a,s u a wild or~y of. the trusts.' · receive or have received salarieR and allowances from the Reparation These characterizations of the work of a Democratic Congress were Commis ion in addition to t.beir pay and allowances as officers of the made by a Democratic President and a Democratic United States Sen­ .Army· a.nd also a statement of the number of clerks, stenographers, ator. Despite his denunciation of it, Mr. Cleveland did not veto the and persons employed by said repl·e.sentatives of the State Department, measure. lt became a law w1thout his. signature--the only revenue together with the compensation paid to each. law we ever had without presidential sanction. Free-trade Democrats in the Senate are assailing the pending bill I PRESIDE:N°TIAL APPROVALS. with prophecies that it will add to the cost of living. That is an old, old story with free traders. For nearly a century they have been say­ A message from the President of the United States, by Mr. ing it over and over again until it has worn so deep a groove in the Latta, one of bis secretaries, announced that the President Democratic platform that no Democt:at can see over the sides of it. had approved and signed the following acts and joint resolu­ All tbat they have aid in the present debate was uttered in pre­ cisely the same terms by their Democratic predecessors of years ago in tions: denouncing every protective ta.rur law before enactment. On June 17, 1922: Never do these ame Democrats-or did their predecessors-justify their argument by taking the figures of a pl'Otective taritr period to S. 2664. An act for the relief of Jesse GDouin; p_roTe that protection. has ever added a penny to the cost of living. S. 2606. An act for the relie:f of Ed Thomas and Pauline They do not do it, because results do not show it. Thomas; and Democrats talk fiercely of whut a protective tariff wi1l do, but vou never can get a word out of them as to what a protective tarl!I' haa S. J. Res. 204. Joint resolution to authorize the loan by the oone.. Secretary of War to the commander in chief of. the United The di1ference ls the difference between prophecy and results. 9166 CONGRESSIONAL RECORD-SENATE. J°UNE 22,

DISTRIBUTION OF SPEECHES BY FEDERAL RESERVE BANKS. Instead of dettating credits and currency, the Federal reserve banks, during the period of falling prices, enormously expanded bank credits Mr. HEFLIN. Mr. President, I was astounded at the posi­ and increased the volume of circulating notes. tion taken by the Senator from Virginia [Mr. Guss] that the Now, listen, Senators t Here is what I said on February 9 as Senate had no right to call upon a Federal reserve bank for the to what the official records prove; information asked in my resolution. I run surprised, in the first The Reserve Board's own figures, printed in the Federal Reserve Bul­ place, that the Senator would take such a s.tand. I hold that letins, clearly prove that Senator GLASS made a grave and inexplicable his position is utterly untenable, in the second place. blunder in asserting, as he did in his speech, and then in printing the I do not know, but it is difficult for me to believe that any statement in the pamphlet speech in italics, that " during the whole period of falling prices the Federal reserve banks were supplying largely other Senator would agree with him that the Senate-which increased credit facllities and issuing a constantly increasing volume of helped to create the Federal reserve banking system, which Federal reserve notes," for an analysis of the reports shows, irrefutably, e tablished 12 regional banks, with the Federal Reserve Board that in precisely the "period of falling prices," through which we have been passing, there was not only no " enormous expansion " by the as the governing power, with its members appointed by the reserve banks in either "bank credits" or " circulating notest but in President and confirmed by the Senate, and with that board the 12 reserve banks there was an actual contraction of $2,00o,149,000 naming the governor of every Federal i·eserve bank-had no in the Federal reserve credits- right to call upon one of those banks for the information Those facts come from the Federal Reserve Board Bulletin. sought in the resolution. I can not understand the Senator's If they are not correct, I am not responsible for that. method of reasoning and the logic of his strange argument in And a contraction of $927,026,000 in the volume of Federal reserve thi matter. notes. I was also urprised when the Senator took the position Now, Senators, I want these figures to go in the RECORD of to­ thnt be oppo .. es the passage of the resolution calling upon those day's proceedings. Listen, here are the facts: bank to give the information which I seek in the resolution. Loans,

The speech of one Sena.for from Virginia having been ctrcu- I think be is ex-Governor Stokes, ot New Jersey, who iS against lated, which another Senator claims has a great many inac- · the Federal Reserve Board's deflation policy. curate and incorrect statements in it:y and that his speech has Mr. President, that is what is going on in an eft:ol't to have the right and correct statements, will not the Senate decide to this man reappointed. The interests supporting him are work­ let each man who has read the one speech read both speeches Ing in every way to bring about his reappointment. and decide for himself? Senators, are we not entitled to such The Senator from Virginia says that if the Senator from a proposition of fair play in this country? This is a republic. Alabama feels like hls speech has answered the one the Sena­ . The people out yonder who read and Inform themselves are tor from Virginia made, he felicitates the Senator from Ala­ entitled to know the truth 1n order that they may know how bama upon his happy frame of mind. That is a nice compliment properly to cast their votes. Here ts the lawmaking body for the Senator to pay to himself. I have received a number or which belongs to· them, and· here 1.s a Senator who has been letters from people in his own State who agree with my posi- 1ighting a deflation :policy that b'e will believe to his dying tion. I am not going to read any of them now. I ha~ letters day was inaugurated by the money lords of Wall Street, and here from Texas, from Maryland, from Tennessee, and scores that it brought ruin upon millions of people in the country. Is of letters from various other States. Just to give an indication be going to be hampered and handicapped and hounded by the of the sentiment outside of his State and mine, I quote from a very people who have been guilty of the things he charges? letter written by the former cotton expert of the State of Texas, Will not the Senate, that has the authority and the power, Mr. Yearry. He says: merely request-for that is what the resolution does-these Replying to yours of May 12, on reading your speech on the Federal banks to give that information? reserve bank in reply to· the speech of Senator CARTER GLASS, allow Mr. President, let us get the truth. Let ine try again. I ~~;e s:ia~i:i\h.~uw~r0f8~ee ;e~~;~~e~~lho~a. an unanswerable offered a resolution a month ago to investigate the Federal Here is a letter from James A. Martin, manufactlirer and Reserve Bank of Atlanta, a bank that holds the purse strings wholesale dealer in lumber, of Johnson Cit.y, Tenn. of the States of my section, my State included. The bankers of At no time in two years past could business get loans at fair rates my State must go to that bank to make arrangements to get so that the user or manufacturer could .afford to borrow and expand their currency and credit, and yet that bank sends out a speeeh, bis business. Mr. HEFLIN is absolutely correct when he charges defia­ accompanied by a letter, to the people who must depend on it tion with destroying values and business in the South. for currency and credit, and calls on them to give their opinion :Mr. President, I am not going to weary the Senate now, but I as to the situation, the speech and all. Mr. President, that is a promise that I will discuss this question at various times, and severe crime in a Republic. I know that there are those, and if ever that man is reappointed I will have much more to sav. some of them get into this Chamber occasionally, who have but I will read a letter now from Baltimore-and, as the hour lg little regard for the rights of the people. What right has a growing late, I shall read no more letters this afternoon­ banking institution which holds the money supply and controls written by Mr. McCormick. This letter was sent to me by a the life blood ot business, and especially an institution which is friend. under Government supervision, with its head officer named by It iS addressed to Mr. L. C. Younger, dlstrict manager of the the Federal Reserve Board, to go into politics in this fashion? Provident Life and Trust Co., Richmond, Va. Was I wrong in calling for that information? I could not get it. MY DEAR Ma. YouNGER: I have just read with a great deal of in­ Tbe committee never acted on that resolution and that resolu- terest . your article in the Manufacturers• Record regarding the Fed- eral reserve, and want to thank you for lt. I have writt"en a good tlon is dead. I Chose the other course and called on the bank at m:my articles on this subject. I was president ()f the Baltimore com- Atlanta, and that bank has reported, and I am simply requesting merci.al Bank for five years. It is the 18:1':&"est State bank in Maryland · I th thin · a member of the Federal reserve. Wnile I believe in the Federai that the o ther b a nkB d 0 lik~ewise. s ere any g wrong m reserve system, the ideas promulgated by the present regime as well that? as Mr. Houston a.re certainly far from sound business. We are pay- Mr. President, I know that some .Senators do not like to hear 1ng very, very dearly for them, and it will be years before the majority what I am saying, but they are going to hear a heap more of of llusin". s houses can recoup the losses sustained through the un- A • businesslike methods of the Federal reserve. Profits in legitimate it before this thing is over. If the Presi uent reappoints Gov- business, such as ours, are not made as rapidly as in some other. ernor Harding on the Federal Reserve Board, they never will I hope you will keep up the good work, because I find that the hear the last of it ; I will give it to t.hem morning, noon, and bankers, a.s a rule, are afraid to say anything, and the majority of our people are totally blh:id to the situation. night. We are deeply in earnest about this thing; we do not Yours very sincerely, propose to have a man selected who is stamped all over with W. N. McCouncx:. the approval of WairStreet to sit unmolested a:t the head of Those are all the letters I am going to read this afternoon, the Federal Reserve Board and control the money supply of Mr. President. I am simply showing you why it is that I have this great Government. gone to the trouble, week after week and month after month I want to read a statement to Senators to show how efforts for nearly two years, of condemning a policy that I know are being made to secure indorsements for him. Some of those strikes at the very heart of the business life of my country. who are trying to securn his reappointment went up to New You can talk about your tariff and talk about your ship sub­ Jersey and in some Iashion got a bankers' convention there to sidy and other things, but I am hammering on the livest ques­ indorse him. One of the delegates who was present stated tion in this Nation, and that is the control of the money supply that this is what occurred: and credits. I know you want to wave it aside, but the Ameri- Referring to the fact that at their meeting last week the New can people, descendents of the men who achieved liberty in the Jersey Bankers' .Association passed resolutions asking President Revolution, who won the War of 1812, the war against Mexico, ·· Harding to reappoint Governor Harding as governor of the Federal Reserve Board, a New Jersey banket' of the highest standing writes and fought out the great questions between the States in 1861, the Manufaeturers' Record as follows: and won the war with Spain, and then won the great World "Nobody felt like saying much about it. I was temporarily out of War-these heroic citizens, men and women, are not !!'Oing to the conference at the time. The vote was a very feeble one of not ~ more than 10 or 15 out of the three or four hundred people there, and submit to being held up and having the money supply taken I know it was not favored by the majority of those present." away from them and their business killed in order to make That, Mr. President, is the cbaracter of propaganda going on- millionaires and billionaires in Wall Street every 5 or 10 years. .sneaking, insidious, slipping around in a convention, sitting with That is why these papers pounce upon me. I am hammering resolutions in their pockets, never saying a word until just on the real issue, the. one that affects most vitally t.he whole before the convention adjourned, and then, when all the dele- business fabric of America. That is why they fight me. That gates have gone, springing a resolution like that with only a is why these banks are willing to take somebody else's speech handful present. that defends their position and circulate it and keep back mine. Mr. EDGE. Mr. President-- that denounces and condemns their position. Mr. HEFLIN. I yield to the Senator. Mr. EDGE. Mr. President, will the Senator yield? Mr. EDGE. Will the Senator state the name of his cor- Mr. HEFLIN. I yield to the Senator. respondent in New Jersey? I happened to hear him refer to lUr. EDGE. If the Senator will permit a suggestion-I do the New Jersey Bankers• Association. ,,. not desire to make it, however, in any other thought than that Mr. HEFLIN. His name is not given. it may be helpful-I recall the Senator's previous resolution, Mr. EDGE. I 1.magined it belonged to the anonymous class and my suggestion at the time that it be referred in the proper of communications. way, in the orderly manner, to the committee having charge ot Mr. HEFLIN. The quotation is from an editorial in the that particular activity-the Committee on Banking and Cur- Manufacturers' Record which says: rency. The Senator refused to permit that action; and the A New Jersey banker of the h1ghest standing writes the Jrlanufactur- resolution, as I recall, was on thee table for two or three weeks,. ers' Record a.s follows: , and perhaps longer, with frequent addresses on the part of the Then follows what he said as I have read it. I do not believe 1 Senator covering in part the same subjects. Finally the Senator the name is given. but I will tell the Senator who I think he is i sent it to tbe committee in tbe usual way, and a subcommitU. . -

9168 CONGRESSION A.L :£!ECORD-SENATE.

was appointed. I am not a member of the subc.ommittee, so I the chairman of the committee if he will not consent to its can not discuss what happened in the subcommittee, but the passage? information requested under the resolution came to the Senate . Mr. McLEAN. Is the Senator addressing· bis remarks to me? and was published, as I recall, rather expeditiously after that Mr. OVER~~. Yes. I ask the Senator to consent to the action. passage of this resolution. Let us settle the matter. No If the Senator really wants action, rather than merely the harm will result to anybody, and it will satisfy a brother Sen­ opportunity to talk to the resplution all the time-he can talk ator who thinks he bas been aggrieved in thi.s matter. Why not anyhow, so far as that is concerned, whenever he gets the floor, pass the resolution? It will do no harm, and it is very easy whether the resolution is in the custody of the committee or to pass it and elicit this information. otherwise-it seems to me that if, in the usual way, he would Mr. McLEAN. I think, in the first place, the resolution is in ask to have the resolution referred to the proper committee, and bad form. . . the committee would then appoint a subcommittee to make such' Mr. OVERMAN. It may be· in_• bad ~ for·m~ inquiry as they thought proper, his desire would not be in the Mr. l\fcLElAN. I think if it had been. addres ed to the Fed­ slightest degree delayed. Instead of that, the Senator bas eral Reserve Board it would have been in much better form. chosen to ha>e his resolution lie on the table, without action Mr. OVERMAN. I rather agree with the Senator; but the by the committee, and then from time to time to make a speech Senator's colleague has adopted another plan. about it. Mr. HEFLIN. And the other resolution was exactly like it, Of course the Senator has that privilege. I am not criticizing addressed to the bank, and the Federal Reserve Board sent it it at all, but I think he should have the information. I heard to the bank. That is the way it is done. the chairman of the committee to-day make the statement that Mr. OVERMAN. This course was taken with regard to the he would gladly appoint a subcommittee to consider this reso­ Atlanta bank, and why not take it in regard to the others? lution. Speaking now from precedent, the action that was taken There is no harm in it. It can hurt nobody at all, and it will before seems to have been expeditious, and just why the Senator satisfy the Senator from .Alabama himself; and I think if con­ assumes that he will not get action on his resolution if it is sent is given here this afternoon to pass the resolution it will referred to the comruittee now, I do not know. That assump­ be satisfactory all around, to the Senator and to his friends. I tion seems to me entirely unjustified. do not believe that the Senator from Virginia [l\Ir. GLASS] will I merely make that suggestion in an absolutely friendly man­ object to it, because I believe that the Senator will agree with ner, because the Senator ·is entitled to the information, and I me that the whole Federal reserve system is under the control think that is the way to get it, not simply to talk on the floor of Congress and that we have a right to pass any resolution of the Senate to a resolution that is on the table. we please dealing with it. Mr. HEFLIN. l\Ir. President, I appreciate the kindly interest l\fr. McLEAN. I understand that the Senator from .Alabama of the distinguished Senator from New Jersey, who helped to has nearly finished bis remarks. send my other resolution to its long, last sleep. It sleeps there Mr. HEFLIN. I do not know how long I am going to speak. still, Mr. President, with no sign of awaking. [Laughter.] If this can be done and the resolution agreed to, I will stop Mr. EDGE. Was not the information which the Senator re­ now-- quested under the terms of the other resolution received by the Senate after the resolution was referred to the committee? Mr. McLEAN. The Senator might as well use up the rest of Mr. HEFLIN. No; not until I bad another resolution the afternoon, I think. We are to have a meeting of the Bank­ passed through this body. I got a resolution through here, by ing and Currency Committee to-morrow, and I should like to unanimous consent, calling on the Atlanta bank to give this consult the committee with regard to these matters, if they are information, and to send their mailing list, and they did so. to keep coming. I think it is an unfortunate precedent to al1ow Now I am asking that the other 11. banks do the same thing, all these resolutions to go through under unanimous-consent and show bow much they expended, and bow many speeches agreements. I should like to know what they involve. ·they sent out, and two or three Senators on the other side are Mr. OVERMAN. I agree with the Senator, and yet we have blocking the proposition. adopted· this principle; we have done it before, and why uot Mr. EDGE. I recall very clearly that after the previous do it again? resolution went to the committee, word was received that the Mr. McLEAN. I think, furthermore, that the resolution Atlanta bank was ready at any time to send the information. should be in proper form, and I should like to have it go to the I do not think the other banks would feel differently disposed ; committee. It seems to me that the Senator from Alabama is but this idea of talking forever on the floor of the Senate to a as much obligated to consent to let the resolution be referred resolution that apparently can not receive action without regularly as I am obligated to withdraw my objection, under the unanimous consent, when there is other unfinished business circumstances. before the Senate, certainly does not get the Senator anywhere. Mr. OVERMAN. The Senator is usually very· gracious and It simply gives him the opportunity to make frequent speeches, kind about these matters, and I thought if I appealed to him which he seems to enjoy. probably he would yield. I felt that the Senator has no per­ l\Ir. HEFLIN. l\1r. President, I have to remind my friend sonal objection because of these technicalities, and this has been from New Jersey that I make a speech when I feel it my duty done before. to speak, without consulting him as to when or how long I shal~ Mr. McLEAN. As I said, I have not voted once, since I have speak, or what I shall speak about. Now, just think. If I bad been in the Senate, against a resolution of investigation; but not spoken this afternoon, would I ever have brought out such in this particular case there are so many of these resolutions a suggestion from the Senator from New Jersey? Publicity­ coming along that I should like to consult the committee with giving the facts in the CONGRESSIONAL RECORD; this is one pub­ regard to the matter, because I have a feeling that we are lication that can not be subsidized. When you tell the facts, establishing a precedent here that is going too far. and they go out in the CONGRESSIONAL RECORD, the country reads Mr. OVERMAN. I agree with the Senator. I have opposed them, and that is what. I want it to do. a good many proposed investigations but this precedent has Mr. OVERMAN. l\Ir. President, will the Senator yield to already been set, and it does not require the expenditure of any me? money. Mr. HEFLIN. I am glad to yield to my friend from North Mr. McLEAN. If it is a bad precedent, the sooner we diverge Carolina. from it the better. Mr. OVERMAN. Mr. President, I hope the Senators on the 1\Ir. OVERMAN. I think, if we agreed to the passage of this other side will gi>e consent to the passage of this resolution. resolution, we could go along with the tariff bill to-morrow ancl The Senate bas already passed a resolution asking the Atlanta not have a continuation of these speeches. It will take all day, bank for this information, and they have replied. It did no­ probably, to discuss the matter. I am making the suggestion body any harm. The Senator from Alabama feels that this only in the interest of economy ,of time. matter is personal to himself and an attack on him. I do not 1\1r. HEFLIN. l\Ir. President, the Senator from Connecticut agree with the Senator from Yirginia [l\fr. GLASS] that the declines to withdraw his objection and permit this resolution Government has nothing to do with the Federal reserve banks. to pass. and'I am forced to proceed and comment upon that. I think the whole system is under the control of the Govern­ The Senator from North Carolina [Mr. OVERMAN], one of the ment. The Senator from Alabama evidently is going to talk ablest, fairest, and best l\lembers of this body, who believes in on this resolution all this evening; he is going to talk to-mor­ justice and fair play in everything, is asking now. ·as a matter of row; and why not give consent? No harm will be done to any­ simple justice, something that will not cost the Government one body, but it will satisfy him and his friends. cent. The Senator from Connecticut [Mr. McLEAN], who op­ I hope the Senators on the other side will yield. The chair­ poses giving this information to me and to the country, wants man of the committee is here, and I think he will agree with my resolution referred to bis committee, of which the Senator me that no harm will be done by passing the i·esolution. I ask from Virginia [Mr. GLASS] is a member, and ·I am asking the ... /

1922. CONGRESSIONAL RECORD-SENATE. 9169

Senate not to do it. I have stated what happened to the othe~ I l\fr. HEFLIN. The subsidized press agents are on every J: esolution. I never would have gotten that information if I hand, and ernry sort of ingenuity is employed to suppress what 11ad not gone around to the committee and offered a resolution I say and keep it from the country. I know it is a hard fight, here that did not cost the Government anything. In that way but I am going to make it if I live. I got that information. That is all I am asking for now. Mr. EDGE. The Senator can not evade the actual happening What is it that makes Senators want to hold up this resolu- in that way. Of course, the Senator was very properly called tion until to-morrow? Do they want to confer with the Federal to order, and, as he says, technically could not have spoken Resen'e Board governor? Do they want to talk to the Federal until relieved of that ban. That is very true. But there was Reserve Board governor, whose oonduct I have criticized and only one time for a Senator to express his feeling of-I do not expect to continue to criticize? Do they want to ask them want to use the word "contempt," and I will not use it-- whether or not they want to give this information? Is that Mr. HEFLIN. The Senator can not use it toward me. the object of delaying this thing? What is it, Mr. President? Mr. EDGE. To express his feeling, certainly, of difference of Does it come back to what I uggested in the outset to-day? opinion, when a Senator will permit himself to forget himself, Whenever you get a matter up here that treads on the toes of even for a moment, and use a term of that kind on the floor of big business-business that regards itself as bigger than the the United States Senate. The only time that any Senator Government; business that thinks it has a bought license under could express his view of it was when the motion was made. which to pillage nnd plunder the American people; husiness The Senator as a rule is rather difficult to stop in debate, and that can whisper around and have a thing like this held up-- he could have withdrawn that expression before the actual call what is it that is back of all this thing that we witness here to order was made. He was still standing on the floor; he was to-day? trying 'to speak ; but he made no effort to withdraw the word 'l'he Senator from New Jersey [Mr. EDGE] wants to know until after the motion was made, and then he did. So that I why I want to discuss the resolution. Thank Go

and of interest to him and how the fight that was made by Government, be given the opportunity to circulate my speech those opposing the passage of the resolution. that I made in the Senate in the interest of right and justice If the Federal Reserve Board do not objeet to it, why do to me and to the whol_e people of the United States. That is you want to postpone action on it to-day? Do the banks all I ask, but I am held up. Now, then, I must give my -0pinion object to giving this information? Is that what we want to and impressions ta the country. I . want the country to know wait for? I do not care whether the Federal Reserve Board that we can get nothing through here that .affects for good the or the Federal resarve banks object. I am a lawmaker in the American people if it in any way pei·tains to this big banking greatest lawmaking body in the world, and I speak, in part, octopus of the East without some eastern Senator blocking it. for one of the sovereign States of this Union; and in my place When will the West wake up? When will the North wake up and right as a Senator I demand this information of these and the South? When will they combine their strength and banks created by law in a body of which I was a Member, for crush this octopus that 1lourishes in wrongdoing in Wall Street I was a Member of the other House at the ttme the bill was and has become so big that when a Senator assails it on this pa sed creating the Federal reserve system. floor there are editorials written about him wherever there is a Why am I not entitled to this information? This banking Federal reserve bank located. Is not that strange? system was administered fairly and well until the late spring Do you know what I said here the other day? I said that of 1920, when it inaugurated the deflation policy which was I was informed by a former official of the United States Gov­ indorsed by the Senator from Connecticut, hitherto an op­ ernment that one of the editors of one of the big dailies in New ponent of the Federal reserve banking system. I was for the York, who used to be in the employ of the Federal Reserve system in the beginning; I am for it still. I was for the Fed­ Board in Washington, is now on the pay roll of the Federal eral Reserve Bonrd up until the late spring of 1920; btit when Reserve Board, or on the pay roll of the Federal reserve bank, the Federal Reserve Board trafficked with that system and at New York, and I told you that you would not see it an­ commenced to manipulate it as Wall Street decreed should be nounced in a single newspaper next day, and you did not, did done and broke down business in my section, lost the people ot you? Do you remember that? Then ask me why I stand here my State more than a hundred million dollars, and I stood and expend my strength day after day in this hot summer. up here and protested against it, and the Senator from Con­ Somebody has to fight. Somebody ought to fight. I told you necticut defended it. He came across this aisle and shook from my place here that when the Supreme Court handed down hands with the Senator from Virginia on hls speech, which has a decision, in which it criticized and condemned the Federal been circulated by these Federal re ·erve banks. He congra.tu­ Reserve Board's treatment of a State bank in Nebraska, that it lated him upon that speech. Hitherto he had been against the was not given to the country, and I had letters about it from system. Now he is for it. Now he is for the board. people, and one paper out in the West had an editorial that first Kow, let me read to the Senate a letter put into the CON­ called my attention to it. It said, "Why was not that bit of GRESSIONAL RECORD by the able and distinguished Senator from news given to the country "? South Carolina [Mr. SMITH]. A better friend the farmer never Should I remain silent, although it is more in keeping with had in this or any other legislative body. He put a letter in ease and comfort to sit silent a hot day like thi , when I the CONGRESSIONAL RECORD yesterday, to be found on page 0069. see these forces creeping up little by little and ~P by step? It was headed : No, Mr. President, I would rather have it said of me when I The future of cotton-Short-sighted policy of the world's spinners am gone, whether I live long or die soon, that when these cou­ and manufacturers. cerns with mighty tread were stealing up .slowly but surely (By Sir Charles W. Macara, Bart., Manchester, England.) upon the Gon~rnment and its instrumentalities that he was He is president of the Cotton Spinners' A sociation of Eng­ there :fighting as best he could; that those who were hired to land. and in a letter to Hon. Harne Jordan, who used to be write editorials attacking him did not deter or intimidate him; president of the American Southern Cotton Association, this that the effort to hamper and hinder him in the tight failed language was used by this great Englishman, 3,000 miles away, utterly; "he fought on and on for what he believed was a spinner, and head of the spinners' organization of his country: right." I would rather leave that record to my boy and to Not only is the boll-weevil menace a terrible reality, but the result those of my relatives and friends than any other record I could of the dra tic deflation in the market value of staple farm products make. has brought farmers in the South to·the verge -0f ruin. I have never mistreated a Senator in this Chamber. I never Then talk about making an attack upon the Federal Reserve have been an initiator of anything that looked in that direction. Board without any facts to back it up! I know what I am I have resented things when I felt it my duty to do so. They doing. I am hitting this crooked bunch in a tender place. I who :fight for the right encounter obstacles and difficulties. believe in calling a crook in high place a crook, just as I would They have no easy path to walk. They must fight. I recall the call a common crook in the common walks of life a crook. This old hymn. " Sure I must fight if I would win. Increase my country will be better off when more of that is done in responsi­ courage, Lord." That is the slogan. Fight what? Fight preda­ ble positions. Why should I come around treading on velvet, tory interests that feel that they are greater than the GoveJ:n­ talking about a man who I believe speculated in cotton himself ment. Fight to keep banking instituti-ons created by law to at the time he was denying the farmers loans, with which to serve the busine s needs of the people out of politics. Fight withhold their cotton from the market, and he was beating the those who will take a speech brimful of attacks upon a Sen­ price down below the cost-of production. I believe, and I repeat ator and full of statements the correctness -Of which are chal­ on this fioor, that I believe he made hundreds of thousands of lenged and broadcast it <>Yer the country, costing thousands ot · dollars speculating in cotton. Then they say to me that I ought dollars. not to make this fight! My sense of right and justice impels Why, 1\Ir. President, I know I have stirred up strong opposi­ me to make this fight. tion amongst them. I am astounded to see the enthusiastic Now, when I did make the fight I invited from Virginia the and determined effort on the other side of the Chamber of the : able and brave John Skelton Williams, one of the bravest and two Senators from the East who are opposed to this resolution. (best Americans living to-day, a man who was Comptroller of the One of them, the Senator from New Jersey [Mr. EDGE], says Currency for eight years, the best comptroller, so stated to me he does not object personally and yet he serves notice on me l by a Virginian that Senator Guss said of Williams, that we that he will object personally to the consideration of the reso­ , had had in 40 years. I invited him to come to Washington. lution. Is he offended with me personally? There is no just 1 We went over the Federal reserve bulletins and :facts and cause for it. No Senator in this body could offend me enough . :figures that he had gathered and that he knew about while personally to make me object to a resolution like this. I would he was Comptroller of the Currency. I said, "I am going to not put it on that ground; so help me God, I would not. I -reply to Senator Guss's speech and I want the :facts and noth­ would permit a Senator to put a resolution like this through, Iing but the truth." We went into those things in the two or even if I did not speak to him. So let us come out in the open three conferences we had. I marshaled those facts under his on this thing. aid, with the :figures that we obtained from their own records, I will be getting letters from New Jersey and from Om­ I and brought them in here, and in a five-and-a-half hours' speech necticut and from other sections of the country on this fight \ refuted the arguments of the Senator from Virginia, and he to-day. I have had them on every fight I have made, from ne•er undertook to answer my statements until to-day, and nearly every State in the Union, saying, " More sti·ength to that feebly and only in a general way. your arm." I am asking for the opportunity to send out that speech of Senators, that is the way the people feel to-day. They know the mine to the people who read the Senator's speech, which I danger of the money power in politics. We were told by George say contains so many inaccurate and incorrect statements. Washington to fight against it. We were told by Jeflerson and ,

1 I think he was imposed on by the board. They grabbed up J a.ck.son and Lincoln to fight against it. When we inaugurated . the speech he mu

son said we had broken the power of the Wall Street gang and reader may decide for himself the question regarding defla­ driven them from the control of the money system and the tion as presented by two United States Senators. credits of the country. I am fighting to keep this system out of Mr. President, I submit the question to the intelligent and politics. I want you to help me to do it. I am doing it in the fair-minded people of the country. interest of the couutry. I have had letters from all over the Mr. CURTIS. Mr. President, the Senator from New l\lexico country saying that I was right in this matter. I have scores [Mr. JONES] intended to address the Senate to-night on the of them from Virginia saying that I am right. Yet here I am tariff bill, but he has said that at this late hour it would be confronted with the proposition that I have not the right to impossible for him to conclude, and that time would be saved ask for this information, and that I ought not to have it; that by letting his ·speech go over until to-morrow. I move that the I ought not to be able to send my speech out to the people who Senate proceed to the consideration of executive business. read the speech of the Senator from Virginia. Mr. EDGE. Mr. President, if the Senator from Kansas will Senators, the work of this day will be recorded, and you will yield to -me for a moment, I wish to say merely a word. I have bear from it many times before the campaigns of 1922 and no desire to make an address at all, but simply to correct the 1924 are over. We are talking now about the most vital thing last statement made by the Senator from Alabama, and which I in this Government. They who control the money supply, think in fairness should be corrected. The Senator from Ala­ they who hold the purse strings, they who manipulate the credits bama said, if I heard accurately what he said, that two United of the Nation, control the lifeblood of business in the whole States Senators have prevented him from getting the informa­ United States. tion he desires. I think I can speak for the Senator from Am I to be condemned for demanding that Federal reserve Connecticut, and I know I can for myself. 'Ve have not pre­ banks shall keep out of politics and perform the duties for vented the Senator from getting the information; that must be which they were created? made absolutely clear; we have merely insisted that he obtain I am a friend of the system. I helped to create it and in the the information in the usual regular and orderly manner by Democratic caucus in the House I fought to have cotton recog­ having the resolution referred to the committee having charge nized, and the ·warehouse receipts of the farmer so recognize(! of such activities. that he could borrow money on them to help him obtain the Mr. HEFLIN. Will the Senator now give ~onsent that the cost of production plus a profit. My friend the Senator from resolution may be considered at this time? South Carolina [Mr. SMITH] is a friend of the system. He is l\fr. EDGE. I will not. just like I am with reference to the deflation policy of the Fed­ l\1r. HEFLIN. That is all. eral Reserve Board. EXECUTIVE SESSION. Here is the Governor of the Federal Reserve Board, who is opposed to me, of cour e. The Senator from Virginia said he Mr. CURTIS. I renew my motion that the Senate proceed to v.Tote him a letter stating that the reason why he did not go the consideration of executive busine s. home and vote was that he would have to vote for me, and I re­ The motion was agreed to ; and the Senate proceeded to the plied that he knew I would expose his crookedness if ever consideration of executive business. After five minutes spent in I got into the Senate. That is the man at the bead of the board. executive session the doors were opened, and (at 6 o'clock and I have read documents here from various sources condemning 25 minutes p. m.) the Senate, under the order previously entered, him, and I liave read an editorial from the Manufacturers' Rec­ took a recess until to-morrow, Friday, June 23, 1922, at 11 ord just bristling with indignation at the suggestion of his re­ o'clock a. m. appointment, and showing how the honest business men and bankers of the country would resent it; and yet he is appointing NOMINATIONS. the governors of the other banks and having a speech sent out; at least, they said at Atlanta that it was suggested the speech Executive nominations received by the Senate June 22 ( legis­ was available, and, of course, he suggested that they send it out. latit'e day of April 20), 1922. None of them would ever have been circulated by these banks RECEIVER OF PUBLIC MONEYS. but for the Governor of the Federal Reserve Board. He ap­ Charles S. Merrill, of Wolcott, Colo., to be receiver of public points the governors of these banks. Do you understand, Sen­ moneys at Glenwood Springs, Colo., vice Henry J. Holmes, a tors? removed. Now, they have sent them out. REGISTER OF THE LAND OFFICE. I said, "All right, there is Senator GLAss's speech in pamphlet form, and here is mine. You had hi~ printed at Government l\Iiss l\lay G. Angel, of Idaho, to be register of the land office expense and at the expen e of the banks. The Government is at Hailey, Idaho, vice Ben R. Gray, removed. entitled to a little interest in the funds you have expended. I PROMOTIONS IN THE REGULAR ARMY. '\Vant you to give Congress a list and let us see what you have To be colonels. done. I want to send my speech where you have ent bis." Lieut. Col. George Evans Stewart, Infantry, from June 14, But Senators on the other side, a couple of them, the Senator 1922. from Connecticut [l\Ir. l\IcLEAN] and the SeQator from New Jer­ Lieut. Col. Henry Aloysius Hanigan, Infantry, from June 14, sey [l\Ir. EDGE], oppose the resolution. The Senator from New 1922. Jer ey said that personally he cloes not object to me having the information, but the RECORD will disclose the fact that he To be lieutenant colonels. said he would object to the consideration of the resolution. I l\laj. George Catlett Marshall, jr., Infantry, from June 14, leave it for the reading public, those who read the RECORD, to 1922. decide just what his attitude is in the matter. Maj. Talbot Smith, Cavalry, from ·June 14, 1922. Now, Mr. President, I want to say just this in conclusion: To be tnajors. The American people are having some very strange thoughts Capt. Paul Joseph McDonnell, Infantry, from June 14, 1922. about Oongre s. The impression is growing stronger every day Capt. Eustis Leland Poland, Infantry, from June 14, 1922. that big special interests have u hold on the Government under POSTMASTERS. this administration such as they never had before; the impres­ sion is growing that the man with big means is all and all at ALABAMA. tliis Capitol, and that the rank and fi1e of the men and women Jacob G. Matson to be postmaster at Sylacauga, Ala., in place out yonder are apparently of little consequence. They need our of R. St. John, resigned. help-the rank and file. HAWAII. The speech of the Senator from Virginia contained some of Lee Loon to be postmaster at Pahala, Hawaii, in place of the same points made by the governor of the Federal Reserve James Campsie, resigned. Board in his speech. ILLINOIS. The Senator's speech was sent out-6,500 copies of it by 1 bank of the 12. If the bank at Atlanta, in a section of country Jacob H. Hill to be postmaster at Decatur, Ill., in place of which is not so thickly populated as is the eastern section, W. M. Bering. Incumbent's commission expired February 4, sent out 6,500 copies of that speech, bow many do Senators 1922. suppose were sent out from New York? I bad a letter from 1\fack Sparks to be postmaster at Mattoon, Ill., in place of a gentleman the other day stating that a New York lawyer E. F. Poorman, removed. told him that he thought that everybody in New York had re­ INDIA.NA. ceived one of those speeches. Now, the Federal Reserve Board Ella S. Shesler to be postmaster at Burnettsville, Ind., in bas had that speech circulated. I am asking for the right and place of E. S. Shesler. Office became third class January 1, opportunity to circulate my speech in order that the American 1921. ' 9 72 CONGRESSIONAL RECORD-SENATE. JUNE 22,

KANSAS. George Wadsworth. H. Earle Rus ell. Orsen N. Nielsen. William P. George. Cyrus L. Ward to be postmaster at Narka, Kans., in place of Samuel R. Thompson. It. L. Bever. Office became third class October 1, 1921. Walter A. Adams. William W. Heard. George T. Colman. LOUISIANA. George A. Makinson. Dillard B. Lasseter. Harry J. Norris to be postmaster at Oak Ridge, La., in place John L. Bouchal. Harvey T. Goodier. of G. H. Norris, declined. REGISTERS OF LAND OFFICES. Samuel 1\1. McCarty to be postmaster at Salem, La., in place of G. C. Calvin. Office became third class October 1, 1920. Silas E. Speckman to be. register of land office, Lamar, Colo. William Ashley to be register of land office, Coeur d'Alene., MICHIGAN. Idaho. Arthur 1\1. Gilbert to be postmaster at Wakefield, Mich., in Hugh E. O'Donnell to be register of land office, Lewiston, place of E. F. W. Neidhold, resigned. Idaho. . MINNESOTA. George J. Reiley to be register of land office, Baton Rouge, La. Elvia R. Sester to be postmaster at Richville, Minn., in place Martin Widsten to be register of land office, Crookston, Minn. of E. R. Sester. Office became third class January 1, 1922. William 0. Ligon to be r.egister of land office, Jackson, Miss. Eber Melvin Steninger to be register of land office, Elko, Nev. MISSISSIPPI. Albert Halen to be register of land office, Vernal, Utah. Aaron B. Johnston to be postmaster at Enid, Miss., in place of H. I. Brown, resigned. PROMOTIONS IN THE ARMY. NEW JERSEY, Samuef Greaner Talbott to be major, Adjutant General's De. partment. · Charles W. Foster to be postmaster at Grenloch, N. J., in Henry Henderson Pfeil to be major, Adjutant General's De-­ place of C. D. Nicholson. Incumbent's commission expired partment. January 24, 1922. • George Walter Hirsch to be captain, Ordnance Department. Charles R. Stoneall to be postmaster at Ridgewood, N. J., in Robert John Wagoner to be captain, Quartermaster Corps. place of F. M. Stevens, resigned. Frank Watts Arnold to be captain, Quartermaster Corps. NEW YORK. Harrison William Johnson to be first lieutenant, Signal Cori>&: John C. Tharp to be postmaster a.t Campbell, N. Y., in place POSTMASTERS, of A. J. Harrison. Office became third class October 1, 1920. John C. Shanks to be postmaster at Waterloo, N. Y., in place ARIZONA. of H. C. Kinney. Incumbent's commission expires July 2, 1922. Lutie Paxton, Flagstaff. NORTH CAROLIN A. GEORGIA. John H. Pullen, Meigs. Sion D . .Johnson to be postmaster at Pittsboro, N. C., in place Gordon G. Ridgway, Royston. of w. H. Griffin. Jncumbent's commission expired April 6, 1922. KANSAS. OHIO. Glenn L. Shaffer to be postmaster at BeUvllle, Ohio, in place Harry R. Markham, Alton. of K. H. Robinson, removed. KENTUCKY. SOUTH CAROLINA. Henry C. Mann, Kevil Jo ·eph G. Holland to be postmaster at Edgefield, S. C., in MARYLAND. place of C. M. Mellichamp. Incumbent's commission expired Mary C. Worley, Riverdale. 29, April 1922. MINNESOTA. SOUTH DA.K.OTA. George N. Breher, Wadena . .Joshua T1·umm to be po tmaster at Hayti, S, Dak., in place of .Josh Trumm. Office became third class January 1, 1920. NEW MEXICO. Emma G. Esteinsen to be postmaster at Lake Norden, S. Dak., Arthur W. Lyckman, Madrid. in place of E. G. Esteinsen. Office became third class October NEW YORK. 1, 1920. TEXAS. Grace 0. Meloy, East Durhrun. Rosella l\I. Palmeter, 'Purling. :Milton S. Fenner to be postmaster at Karnes City, Tex., in place of W. F. Erp, deceased. OHIO. James M. Light, Greenville. CONFilll\IATIONS. OREGON. E;i·ecutit"e -nomina.tions confirmea by tke Sena.te J1me 2 .~ ( "legi-~­ Curtis C. Heidrich, Chiloquin. la.tive day of April 20), 1922. Carrie N. Parker, Gladstone. Karl A. Bramwell. Halsey. Ul'l""'ITED ST~TES DISTRICT JUDGE- Charles l\I. Crittenden, Hubbard. William H. Barrett to be United States district judge, south­ Benjamin F. Turner, Maupin. ern district or Georgia. Thomas J. Warren, Mcl\finnville. JUDGE OF THE MUNICIPAL COURT. Herbert R; Satchwell, Shedd. Robert H. Terrell to be judge of the municipal court, Di trict PENNSYLVANIA. of Columbia. Edward F. Anderson, Austin. UNITED STATES ATTORNEYS. W. Stans Hill, Williamsport. Granby Hillyer to be United States attorney, district of SOUTH DAKOTA. Colorado. W. 0. Potter to be United States attorney, eastern district Sadie E. Gustafson, Buffalo Gap. of Illinois. TENNESSEE. Frederick R. Dyer to be United States. attorney, district of Frank J. Nunn, Brownsville. 1\Iaine. Thomas E. Tipler, Grand Junction. CONSULAR SERVICE. Matthew D. Duke, Martin. TO BE CONSULS OF CLASS 6. Mahlon H. Webb, Pulaski. Jay C. Houston. VIRGINIA. Norwood F. Allman. James S. Smith, Bristow. TO BE CONSULS OF CLASS 7. Arthur G. Childers, Galax. Philip Adams. Lynn W. Franklin. Roy JU. Cleek, Warm Springs. H. Merle Cochran. George L. Brandt. WA.SHINGTON. Joseph F. McGurk. S. Bertrand Jacobson. Charles J. Pisar. Robert F. Fernald. Walter J. Hunziker, Langley. Louis H. Gourley. Ho C. Funk. William C. Black, Lowell. James J. Murphy, jr. V. Winthrope O'Hara. Alfred R. Bramer, Marlin.