1938 CONGRESSIONAL RECORD-SENATE 6607 SENATE Mr. AUSTIN. I announce that the Senator from New Hampshire [Mr. BRIDGES] is necessarily absent from the WEDNESDAY, MAY 11, 1938 Senate. . Authority, and to promote the development and safety and Mr. ADAMS, from the Committee on Appropriations, to to provide for the regul.a.tion of civil aeronautics, which was which was referred the joint resolution the Army Medical Library and its Index catalogue, and -corded under these various registries, together with case his­ tories and reports and follow-up facts relating to subsequent He added slowly- course of events, particularly in the case of patients suffering this library and its catalog are the most important of the four. with malignant disease (cancer). Dr. Welch was not one to speak lightly and without due At the present time the Army Medical Museum is admin­ thought. This was not his first statement of this kind. In istering the registries of- 1921 he had written: Eye pathology; ear, nose, and throat pathology: Sponsored I question whether America has made any larger contribution by the American Academy of Ophthalmology and Otolar­ to medicine than in building up and developing the Surgeon Gen­ yngology. eral's library and in the publication of the Index Catalogue and Bladder tumors: Sponsored by the American Urological the Index Medic~. Association. Great credit for the development of the library is due to Lymphatic tumors: Sponsored by the American Society of Col. John Shaw Billings, who served nearly 30 years with Pathologists and Bacteriologists. the Medical Corps_ ot the Army and with the Army ot the Tumors: Sponsored by the American Society of Clinical Potomac, participating in the battles of Chancellorsville and Pathologists. Gettysburg. Billings, with his principal assistant, Dr. Rob­ Skin pathology: Sponsored by the American Dermatological ert Fletcher, developed the library from 2,000 volumes imme­ Association, Inc. f medical practice. seamen to perform any duties required of them on board mer­ Among other exhibits are found microscopes, surgical instru­ chant vesSl'!ls as long as the certified collective bargaining agenci~-~ can furnish from among their' membership duly qualified persons ments, medical and hospital utilities, supplies and furniture, to perform any duties required of them as members of the crews and field equipment of the military and naval medi~I serv­ of American merchant ships. Employees of any vessels owned by, ices. Seven registries of pathology have been established at or operated for the account of, or chartered by, the CommissiQn shall be deemed employees within the meaning o! section (2); the Army Medical Museum since the World War by national subdivision (3), of the National Labor Reh\tions Act ( 49 Stat. scientific societies. The term "registry" in this respect mean,s , 449}, and the operator of·such vessels shall be deemed an employer the collection of pathological specimens relating to a special :within the meaning of section (2), subdivision (2), of said act. 1938 CONGRESSIONAL RECORD-SENATE 6611 Mr. BARKLEY. Mr. President, the Senator from Wash· to the National Labor Relations Act just as any other enter­ tngton is not in the Chamber at present, and before we vote prise or industry throughout the conntry. on the amendment I think I ought to read excerpts from a Mr. President, I thought that explanation ought to be letter which I received this morning from a gentleman by made before the Senate voted, so that it could have the facts the name of Gardner Jackson, in which he makes some com­ before it. ments on the amendment. Mr. KING. Mr. President, will the Senator yield? The amendment as otiered by the Senator from Washing­ Mr. BARKLEY. I yield. ton includes two propositions, the latter of which is to put Mr. KING. I wish to ask a question for information. Does the employees of ships operated by the Government or any the Senator interpret either of those propositions, or the sug­ agency of the Government under the National Labor Rela­ gested amendment to which he referred yesterday, as mean­ tions Act, and also to put the operators under the act, which ing that the operators of the ships, the Maritime Commis­ the Maritime Commission interprets as being applicable to sion, or the Government itself may not employ any person it. So that if the amendment were agreed to, the Maritime they may please to employ who is competent, but must Commission would be regarded as an employer, and· those resort to some organization, to some hiring halL and be employed on Government-operated ships under the Com­ precluded, in other words, from hiring any person who is mission, or by any other agency, probably, including the competent, no matter whether or not he belongs to a union Panama Railroad and others, would be regarded as coming or belongs to a hiring hall? under the National Labor Relations Act. It was my understanding that that part of the amend­ Mr. BARKLEY. · Mr. President, I am not sufficiently famil­ ment would not be insisted upon or urged. That is why I iar with hiring halls to give the Senator very accurate or stated yesterday, when the Senator from Washington ot!ered dependable information with respect to them. I do not the amendment, that the matter had been brought to my know whether hiring halls are limited to members of any attention, that I had taken it up with the representatives of organization or union, or whether anyone may go to them the Maritime Commission, as well as with those urging the and be enlisted or enrolled, if, I suppose, he possesses cer­ amendment, and had the understanding that the part of the tain qualifications which have to be passed upon by the amendment to which I have referred would be eliminated. United States Shipping Commissioners. It seems that the But as ofiered, and as it is now pending, the amendment Commissioners still have to pass upon these matters, al­ includes the provision relative to the so-called hiring hall, though the seamen have gone through the hiring hall, which and that relating to the inclusion under the National Labor is a sort of an assembling place for seamen who wish to be­ Relations Act of all employees of all Government agencies come enrolled and be eligible for employment. Although operating subsidized ships. the seamen have to pass through the hiring halls, and be Of course, I have no authority to change the amendment passed upon by the Commissioners, I imagine that if the hir­ as it was offered by the Senator from Washington. In that ing hall is conducted by a union, it will consider only its connection, so far as the colloquy yesterday occurred with own members for qualification. After that is done it is my reference to the first part of the amendment, I merely wish understanding that the seamen still have to be passed upon read excerpts from a letter which has just been handed to by the United States Shipping Commissioners as they were to originally called, but who are now a part of the Bureau of me since I came on the floor of the Senate: Marine Inspection · and Navigation in the Department of The amendment merely declares that the Government shall not Commerce. But under any interpretation of this language, operate hiring balls in competition wi~h. the unio~ hiring halls. so long as the certified collective-bargammg agencies can furmsh the authority residing in the United States Bureau of Marine from among their membership duly certifie~ se~en. . Inspection and Navigation in the Department of Commerce The opening of hiring halls at the instigation of the Umted would not be taken away. It is my understanding that the States Maritime Commission has been done under an ancient law passed in 1872. The first such hiring hall has been opened in seamen would still have to go through that organization. New York City, at 45 Broadway, which is the address of the The language of the amendment offered by the Senator branch of the Maritime Commission in that city. The 1872 law from Washington, which deals with that subject, is as was designed to put out of business the "crimp joints" which infested our seaports at that time and preyed unconscionably upon follows: the seamen. The seamen of that era, of course, had no unions Neither the Maritime Commission nor any operator receiving an and were not otherwise organized. The law authorized the United operating-differential subsidy shall call upon any governmental States Shipping Commissioners (who are now part of the Bureau agency to furnish it quallfl.ed, licensed, or unlicensed seamen to of Marine Inspection and Navigation of the Department of Com­ perform any duties required of them on board merchant vessels merce) to open Government employment agencies, in effect, in as long- the seaports for the seamen. In fairness to the unions, as wen as in the interest of truth, I And so forth. am sure you wm want to bring out these facts before a final vote I inter-pret that language to mean that the operator of is taken by the Senate on this proposed amendment. It will be perfectly clear to you that the unions are as anxious privately operated ships cannot call upon a Government as the Government, or any other agency, to ship only the best­ agency for an eligible list of qualified seamen for his own ships, qualified crews. Their objectives are to continue to develop a so long as there is a list available on the part of these col­ well-disciplined organization through which their conditions of lective bargaining agencies which are recognized under the . work may be improved. Wagner Act, nor can the Maritime Commission itself resort That is the statement contained in the letter explaining to any Government agency that has such a list until the these so-called hiring halls, about which I myself know qualified and eligible men on these-other lists are exhausted. nothing. I feel that that information ought to be given to The question was raised yesterday on an inquiry by the the Senate before the vote is taken. That applies only to Senator from Idaho [Mr. BoRAH] as to who would pass on the first part of the amendment offered by the Senator from the qualifications of seamen under this amendment. It was Washington. . my thought at the time, and I think in view of the discus­ Mr. President, it is really difficult to vote intelligently upon sion it was probably justified, that the Maritime Commis­ the whole amendment, because it contains two entirely sion itself would pass upon them, but upon reflection I think irrelevant propositions. One provides that the Government that that function would be performed by the Bureau of agencies shall not be utilized as a source from which to Marine Inspection and Navigation in the Department of draw certified or eligible seamen so long as any of the quali­ Commerce. The seamen would still have to go through that fied and certified collective bargaining agencies have a list channel before the final question as to their qualifications of eligible and cei·tified. qualified men. wa.S passed upon. · The other proposition, which has no relationship to the Mr. KING. Mr. President, I intend to say only a word. first, except in a remote sense, is that the Maritime Commis­ A number of years ago I followed with interest the workings sion or other agencies which are operating ships, either Gov- . of the so-called La Follette seamen's bill. I believed that it einment-operated ships or subsidized ships, shall be subject was a wise and humane and proper measure. Later I became '6612 CONGRESSIONAL "RECORD-SENATE MAY 11

~quainted With ·Andrew Furuseth, the head of the Interna­ Mr. President, I am opposed to the amendment· offered by tional Seamen's Union. For man;sr yea,1·s ·he was the out_­ the Senator from Washington [Mr. BoNE] and hope that it standing labor leader in conneGtion with shipping ·and ma­ will be defeated. · rine matters. He brol.Ight to. tlle discharge of .his duties a Mr. COPELAND. Mr. President, I sincerely ·hope this wealth. of knowledge gained from practical experience upon amendment will not prevail. The only force it has with me many ships -and in an parts of the world; He addressed him­ is that my leader presented it or has spoken for it. He is self to shipping problems, particularly as they related to mistaken as to the manner in which crews are selected. It labor, .in a _patriotic,.practical, and sensible wa:Y .. He worked .would be calamitous to ·turn over to this or that union the indefatigably for the welfare of the seamen. He tried to control of the selection of employees upon our ships. That create a love for the sea upon the part of .America'n boys. is exactly what would happen. My leader was mistaken He· hoped that the day would come when Arilerican ·ships about the way employees are chosen. The Bureau of Marine would be manned by American seamen and that the United Inspection and Navigation merely passes upon whether or States would not be compelled to resort to other countries, not a man is a sailor. Then the union having the hiring Europeap or Asiatic, for men to man our ships. Unfor­ hall, being the ·collective bargaining agency for a given set tunately, he encm,mtered opposition from men of Mr. -of ships, takes into. its enrollment, of course, men who Bridges' stamp and others,. communistic in character, and are sailors, but only those men who are members. of the par­ they attempted, in my opinion, to des.troy th,e fine seamen's ticular union. organiz~tion . whichhad been. built up by him and to which Mr. BORAH. Mr·. Pr~sident, will the Senator yield? he had given the best years of his life. Mr. COPELAND. . I yield. I have felt durjng the past 3 or 4 years that the great Mr. BORAH. · I could not hear the letter read by the organization which he built up was being sabotaged or Senator from Kentucky. It may explain some things which destroyed by Communists and by extreme radipal elements. ought to be explained. SUppose the hirtng hall sends out There are evidences that some of these elements referred. to men or a group of men whom it determines to be qualified. adopted poli-cies harmful to labor and destructive of legiti­ Is there anyon~ else to pass upon that question except the mate and proper shipping interests. Selfish individuals, inter­ hiring hall? ested in their own aggrandizement ;rather than in the welfare Mr. COPELAND. No one else. of s~amen, resorted to methods and policies and practices Mr. BORAH. The Maritime Commission· has nothing -to which disastrously affected the welfare of the people, an~ do with it? · · directly and indirectly injured honest and patriotic seameri. Mr. COPELAND. The Maritime Commission has nothing Strikes have taken place during the past few years, upon the to say about it. Pacific, Atlantic, and Gulf coasts; strikes caused in many Mr. NORRIS. Mr. President, will the Senator yield? instances by irresponsible and radical elements, and in.some Mr. COPELAND. I 'yield. instances by individu~ls who were willing to destroy private · property and to superimpose upon the people a communistic Mr. NORRIS. I should like to ask the Senator a question. form of government. 'Who employs the men? The hiring hall does not employ Unfortunately some of these radical elements have secured them~ does it? control of . a number of unions and have infiuenced many Mr. COPELAND. Under the present arrangement in the seamen, and led them to join in policies anq activities harm­ operation of the ships, a given line, we will say Line A, se­ ful to labor, injurious to seamen, and, of course, injurious to lects the C. I. 0. or the A. F. of L. as its collective bargaining the people as a whole. · These distw·bing elements retard agent. Under this amendment, if the C. I. 0. or the A. F. of maritime development, the building of American ships, and L. is selected, the union establishes a hiring hall, and all the the assumption of that high place which American people employees are sent from that hiring hall directly to the should occupy in connection with the trade and commerce operator of the ship. Unless the operator of the ship desires of the world. W1th our resources and our raw material, tQ have a sit-down strike and to have his ship tied up, he and our scientific developments, and our technical skill, taK.es those employees and has no opportunity to get others. America should lead the world in sea power. I am not Mr. NORRIS. What is a hiring ball? , . referring now to naval power; but to sea power as an Mr. COPELAND. A hiring hall is a central place--in a instrument of trade and commerce and national polity. sense, a club-where the employees gather. Seamen who But. we are not attaining that high place which the genius are "on the beach," as they say, or are out of employ:.. of the American people and the resources of this country ment, gather at the hiring hall. , There is a registry, like demand we should occupy. It is to be hoped that a spirit of that of an employment agency, where the men: register if they concord and conciliation will · take the place of strife which desire employment. When a caJl comes from .a given ship has been so .injurious to the development of our .maritim-e for five cooks, .five. stewards, five deckmen, or five something interests. else, the hiring hall looks over the list and selects five men, As .I have indicated, I endeavored to aid Andrew Furusetb f;tnd the men are sent' to the ship. in his efforts to maintain a seamen's organization which Originally the .hiring hall was, an_institution . of the owners, would provide American-seamen for our ships. I attempted but it was so offensive to the unions that the unions appealed to aid him in protecting the seamen -belonging to the great to the courts in an effort 1;o stop that method of employing union organization of which he was the head. · It seemed to seamen, because the ·owners, tb~elves were operating the me that those devoting their lives to the sea, upon the ships hiring ~lis. The Supreme Court took the matter under of o~ country; should have thrown around them every rea­ advisement and sent· the case back for retrial. Originally the sonable protection, and that those who owned the ships hiring hall was ~bsolute poison to Andr~w Furl:l$eth and the . should protect, in every proper way, the seamen and· aid other pioneers. The way the system is now operated I think them in maintaining proper union rules and regulations. it -is poison to the merchant marine. If the qualifications of I regretted the assaults which were made upon the inter­ the men could be determined by the operator the system national union. to which I refer, and have looked .with con­ might be all right. But contracts exist in the case of most cern upon the program -of certain elements which bas so of the ships. The procedure ·applies. not only to ·Government­ seriously interfered with the development of our shipping owned ships but to privately owned ships or ships which are interests. It is to be hoped that a new day will soon dawn, subsidized. Under the . contracts the ship operators must and that those who are operating ships, and the seamen who take the men from the hiring hall. This procedure has been -man them, will join hands in developing our maritime trade, the cause of many strikes in the case of the big shipping so that our Republic will lead the world, as it should, not concerns, such as the International Mercantile Marine. That only in industry connected with the land but in trade and company would not send to the hiring hall because it wanted commerce in all parts of the world. qualified men and wanted the privilege . of determining 1938 CONGRESSIONAL RECORD-SENATE 6613 whether or not the men were qualified. That is the bone of The present bill proposes to deny to the Maritime Commission, and to any operator receiving an operating-differential subsidy, contention. the right to call upon the United States Shipping Commissioner Mr. BARKLEY. Mr. President, will the Senator yield? for a register of the names of seamen and to avail themselves of Mr. COPELAND . . I yield. the fac111t1es aft'orded by shipping commissioners for engaging Mr. BARKLEY. Purely as a matter of information, it seamen as provided in the statute above quoted. The proposed legislation, if enacted, would in eft'ect divide shipowners and op­ ought not to be difficult to determine whether the shipping erators intq two classes, one class consisting of the. Maritime Com­ commissioners or, as the agency is now known, the Bureau mission and operators of subsidized vessels and the other class of Marine Inspection and ·Navigation in the Department of consisting of all other operators. The first class would be required Commerce still pass upon the qualifications of the men after to engage seamen from certified collective-bargaining agencies, and would not be pennitted to avail itself of the facilities afforded they have been selected and designated by the hiring hall. by United States shipping commissioners, while the second class Is that true or not? would be permitted to utilize the services of shipping commis­ Mr. COPELAND. It is . not true. sioners. The Department is opposed to the enactment of the proposed Mr. BARKLEY. Does the Senator mean that the hiring legislation. hall sends the mim it selects directly to the ship, and that Very truly yours, their qualifications are not passed upon · by the Bureau of J. M. JOHNSON, Marine Inspection and Navigation in the Department of Assistant Secretary of Commerce. Commerce? · Mr. COPELAND. I have just received a letter from Mr. Mr. COPELAND. That is true. Green, president of the American Federation of Labor. The Mr.-President, the question has arisen as to whether the letter, which has just been placed in my :hands, reads as shipowners or the Bureau of Marine Inspection and Naviga­ follows: tion or the commissioner should pass upon the qualifications I J AMERICAN FEDERATION OF L.4.BOR, Washington, D. C., May 10, 1938. of -a man sent to a given ship after he had· been selected by Han. RoYAL S. CoPELAND, the hiring hall. The answer is no. Senate Office Build·ing,_Washington, D. C. . · I have before me a letter which I have just received from DEAn ·SENATOR COPELAND: The American Federation of Labor 1s the Department of Commerce. It reads, in part, as follows: very much opposed to the amendment presented by Senator BoNE to S. 3078. The amendment is an exact wording of a bill introduced The present bill proposes to deny to the Maritime Commission, in the House which was decisively defeated. and to any operator receiving an operating dift'erential subsidy, the . It is objectionable because for the first time it gives the National right-to call upon the United States Shipping Commissioner for a Labor Relations Board control over a governmental agency. It register of the names of seamen. · would repeal the act of June :r. 1872, known as the Shipping Com­ missioners Act, and such amendments as have been adopted from The bill denies that opportunity. The chief duty of the tlme to time, which, _according to the late Andrew Furuseth, presi­ shipping commissioners is to select men for the ships, so that dent of the International Seamen's Union, had been "fair to both we may have qualified men. employer and employee and satisfactory to seamen." Therefore, in the nanie of the American Federation of Labor, I The last sentence of the letter r~ads: urge the United States Senate to defeat the Bone amendment. Will - The Department is opposed to the enactment of the proposed you make this position known to the Members of the Senate? legislation. Sincerely yours, · WM. GREEN, Mr. President, I should like to have the entire letter printed President, American Federat·ion of Labor. at this point in the REcoRD. There being no objection, the letter was ordered to be Mr. BORAH. Mr. President, ·will the Senator yield? Mr. COPELAND. I yield. printed in the RECORD, as follows: Mr. BORAH. Is it true that before a man may go to a DEPARTMENT OF COMMERCE, OFFICE OF THE AsSISTANT SECRETARY, hiring hall and . be regarded as qualified to be employed he washington, May 11, 1938. must have a certificate from the United States Bureau of Ron. RoYAL S. CoPELAND, Marine Inspection and Navigation? . Chairman; ·committee on Commerce, Mr. COPELAND. That is true. United States Senate, Washington, D. C. MY .DEAR MR. CHAmMAN: Referring to your_telephone request of M. BORAH. What does that inspection cover? this morning, I am submitting herewith a report on the amend­ Mr. COPELAND. It simply covers the question whether ment which was suggested on the floor of the Senate yesterday to he is a sailor or not. To my mind it is a very weak arrange­ S. 3078, a bill to amend the· Merchant Marine Act of · 1936, and for other purposes. The amendment in question provides that on ment. A man comes in and presents a cettificate saying that. page 6, after line 2, the _folloy.oing subdivision to section 301, as he sailed on the Manhattan, for example, from June 1936 to amended in section 5, be added: 193-7,- and on the strength of that he is given a certificate "Neither the Maritime Commission nor any operator receiving s-howing -that he is a seaman. That certificate is all he gets. ,an-operating-dift'erential subsidy shall call upon any governmental agency to furnish it qualified licensed or unlicensed seamen to Under the· law, he would then go to the shipping commis­ perform any duties required of them on board merchant vessels as sioner, who would be more rigid about determining the qual­ long · as the -certified collective bargaining · agencies can furnish ifications of the man. That procedure would be required from among their membership duly qualified persons to perform any duties requirect of them as members of the crews of American under the law, which, as Mr. Green says, has been in exist­ merchant ships. Employees of any vessels owned by, or operated ence since '1872. However, under the proposed amendment for the account -o·f, or chartered by, the Commission- shall be the sailor would not go to the shipping commissioner. He deemed employees within the_meaning qf section (2), subdivision weuld go to the hiring hall of his union, whether he was (3)., . of the National Labor Relations Act (49 Stat. 449). and the operator of such vessels shall be deemed an employer within the g~od. ·bad, or-indi1ferent, without any effort being made to meaning of section (2). subdiv-ision (2), of said act." - - determine his qualifications, and he would be put upon the _1 find that this proposed amendment is similar to H. R. 10335, rolls. When the time came, he would be given a job. w:!;lich w~ have had '!lnder co~ideration ~n - the Departme,nt, at:ld Mr. Mr. on which we are submitting an adverse reP,ort to the chairman of BARKLEY. President, will the Senator yield? the Committee on· Merchant ·Marine and Fisheries ·of the House of . Mr. COPELAND. I yield.- Representatives. · · Mr. BARKLEY. I should like to have clearly in mind the Unqer the provisions of se~tion 4508 of the Revised _Statutes three functions which have been mentioned. The shipping (46 U. S. C. 545), the general duties of shipping commissioners are defined as follows: commissioners, established in the act of 1872, now constitute ·· '''The general duties of a shipping commissioner shall be: the Bureau of Marine Inspection and Navigation; is that not . "First. To aft'ord facilities for. engaging seamen by keeping a reg­ true? They are consolidated under the Bureau of Marine ister of their names and characters. Inspection and Navigation, are they not? "Second. To superintend their engagement and discharge in manner prescribed by law. Mr. COPELAND. They are part of the Bureau of Marine "Third. To provide means for securing the presence on board at Inspection and Navigation. the proper times of men so engaged. . Mr. BARKLEY. As I understand the latter statement of . "Fourth. To facilitate the making of apprenticeships to the sea service. the Senator, before a seaman may be enrolled in a hiring ''Fifth. To perform such other duties- relating to merchant ·sea­ hall, he must obtain some sort of a certificate from the men or merchant ships as may be required by law.'' Bureau of Marine Inspection and Navigation. 6614 CONGRESSIONAL RECORD-SENATE MAY 1] Mr. COPELAND. No man may sail upon a ship as a sailor BANKHEAD, Mr. NYE, and Mr. McNARY conferees on the pa.rt unless he has such a certificate. of the Senate. Mr. BARKLEY. He must have such a certificate before 'IRE MERCHANT ltiARINE he gets into a hiring hall. The senate resumed the consideration of the bill (S. 3078) Mr. COPELAND. Yes. to amend the Merchant Marine Act, 1936, and for other Mr. BARKLEY. Then, after he is passed upon by the purposes. hiring hall, he goes directly to the ship. The PRESIDENT pro tempore. If there be no further Mr. COPELAND. That is correct. amendment, the question is on the third reading of the bill. Mr. BARKLEY. So that the Bureau of Marine Inspection Mr. COPELAND. Mr. President, I think the Senator from and Navigation in the Department of Commerce, instead of California [Mr. McADoo] has an amendment to offer. passing upon these men after they leave the hiring hall, Mr. McADOO. Mr. President, I should like to bring to passes upon them before they get to the hiring hall? the attention of the Senate the amendment I offered day Mr. COPELAND. All sailors go through the Department before yesterday proposing to add- a new section to the of Commerce to obtain their certificates. No effort is made Merchant Marine Act, which is now under consideration. I there to determine their qualifications. It might well be that ask that the clerk state the amendment. sailor B was a man who had been dismissed for insubordi­ The PRESIDENT pro tempore. The amendment will be. nation, who was incompetent, or who was this, that, or the stated. other. However, under the defect in our law, if he has S&iled The LEGISLATIVE CLERK. At the end of the bill it is pro­ he may be given a certificate. He goes to the hiring hall posed to insert the following as a new section: of his own union, which is friendly to him, and when a call SEC. 46. The Panama Rallroad Co. 1s authorized and directed to extend the operations of the three vessels which it 1s now comes from a ship operator, who may desire a man of su­ building or having bunt !or operations between the. Atlantic coast perior capacity, the ship operator has absolutely nothing' to of the United States and the Panama Canal Zone, so as to pro­ say about. it. He must take the man who is sent from the vide regular -service between the Atlantic coast of the United hiring hall. States and the cities of Los Angeles and San Francisco, Caltf., by way of the Panama Canal, for a period of 1 year from and after Mr. BARKLEY. SUppose a man gets a certificate from the date when the flrat of said vessels is operated in said the Bureau of Marine Inspection and Navigation and he service. does not want to go to a hiring hall, or does not see fit to go· Mr. McADOO. Mr. President, I have addressed the Senate to one, can he go to the ship and. secure employment 7 heretofore on a joint resolution which I introduced concerning Mr. COPELAND. He cannot go to the ship. The jobs the Panama-Pacific liners which have recently been with- · on these subsidized ships are all controlled by the unions. drawn from the intercoastal service. For the information of and he cannot get upon a ship unless he belongs to the the Senate, and because the circumstances may have been particular union, and has been sent to the ship from the forgotten, let me say that we had two shipping services on the hiring hall. That is the r~on why Harry Bridges has coast. The Grace Line operated three ships and the Panama­ grown great on the west coast. Pacific Line operated three. All those ships have now been Mr. BARKLEY. A man cannot get into a hiring hall withdrawn, so that there is no passenger service now by fast without a certificate from .the Department of Commerce, ships between the Atlantic and Pacific coasts. and he cannot get into a ship without a certificate from The other House passed not long ago a joint resolution, the hiring hall. Is that the way it works? introduced by Representative WELCH, providing for the re­ Mr. COPELAND. That is correct. tention of the service of the Panama-Pacific ships. That Mr. DAVIS. Mr. President, I should like to inquire-if the resolution came to the Senate and was referred to the Com­ committee has given consideration to this amendment. mittee on Commerce. The Committee on Commerce reported Mr. COPELAND. Indeed it has. it favorably, and it is now on the calendar. No action has Mr. DAVIS. What is the attitude of the committee? been taken upon that resolution. I should be glad to see Mr. · COPELAND. It is 1,000 percent in opposition to it. that resolution passed; but, in view of the pronounced oppo­ As I ha.ve already tried to point out, and did point out at sition of the Maritime Commission, and in view of a letter some length yesterday, the amendment is the same as the which I received from the President taking the same position bill that Representative SmovicH, of New York, introduced as that outlined by the Maritime Commission, it may not be in the House of Representatives. Mr. Green, in his letter this practicable to secure the object designed to be accomplished morning, says it was decisively defeated there. Mr. Green by the joint resolution. points out that the Federation of Labor opposed that bill­ As to the Panama-Pacific ships which have just been with­ and the amendment is identical with it-and the committee drawn, I think arrangements have largely been perfected to had it before it and was opposed to it and is now opposed put them in the South American trade. Meanwhile, Admiral to it. Everybody who knows the critical condition of the Land addressed a letter to me, which I put in the RECORD a American merchant marine is opposed to it. I hope, Mr. short time ago, in which he said that the Maritime Commis­ President, that the amendment will be defeated. · sion were negotiating to put certain ships in the intercoastal The PRESIDENT pro tempore. The question is on agree­ trade which he thought would temporarily serve Pacific ing to the amendment offered by the Senator from Wash- coast needs. .I do not know whether or not that is going to ington [Mr. BONE]. - . be accomplished. The amendment was rejected· So, there being no a.ssurance. of relief along the lines which I have indicated, it occurred to me that use might be made AGRICULTURAL APPROPRIATIONs--cONFERENCE of the vessels of the Panama Railroad CO., which is a cor­ The PRESIDENT pro tempore laid before the Senate the poration wholly owned by the United States, having been action of the House of Representatives disagreeing to the taken over as .a part of the French concession which was amendments of the Senate to the bill n the Pacific run. I have not found any steamship ships originally came into operation by our Government man who has told me otherwise, and I have talked to several for the purpose of transporting supplies for the construe.. of tfiem about this identical service. tion of the Panama Canal itself. The old Ancon, still in So, Mr. President, I earnestly hope that the amendment operation, was used to transport steam engines and every may be agreed to. I regret to see that there are so few Sena"! other species of construction machinery between the United tors on the floor. I do not know whether or not I should ask States and the Panama Canal for the purpose of making for a quorum. possible the completion of that great work. The Ancon was Mr. VANDENBERG. If the senator should ask for a itself the very first vessel to pass through the Panama Canal. quorum, I would have to make a speech on this subject~ so I Mr. PreSident, those early vessels were excellent ships. suggest that he not ask for a quorum. They have done excellent service. But the Ancon, for in­ Mr. McADOO. Mr. President, the Senator tempts me to stance, was almost obsolete before it was ever put into the suggest the absence of a quorum, because I am always glad Panama Canal trade. It had plied the Pacific for nearly a to hear the Senator's speeches. I ask the chairman of the hundred voyages before it was put into that trade. · The committee if he will not accept my amendment. ships. had become so obsolete that for years authority had Mr. McADOO subsequently said: Mr. President, I am sorrJ. been sought, as a necessary requirement for the· operation the Senator from Missouri (Mr. CLARK] is not in the Cham­ of this line, to construct these new ships. These ships are ber at present, because I desire to correct a statement made now .nearing completion, having been constructed out of the in the course of a colloquy I had with him about the pay­ earnings of the Panama Railway. ment of tolls by Panama Railroad ships operating through It may be said. incidentally, that the commercial features the Canal. of the Panama Canal Line, in operation between New York I stated in the debate that the Panama Railroad ships, H and the Panama Canal, have returned a very substantial operated through the Canal, would have to pay the tolls pro~ profit to the Government. It is now proposed, by the vided for merchant vessels. I bave confirmed that statement amendment of the Senator ftom Califor~ to completely since by inquity of the War Department, where I have been .defeat the purposes for which these ships have been con..; told that my p(>sition about the matter is correct. structed, to divert them from ~he trade for which .they· were So far as our war vessels are concerned, I have been in· intended to an entirely different trade, to send them out to formed by officials of the War Department that they keep San Francisco and Los Angeles, where they may be, loaded an account of all our war vessels passing through the Canal, up With citrus fruits for transportation to New Yorlt, en­ and a statement ·Of what the tolls would be if tolls were ex­ ,tirely disregarding the requirements of the Panama Canal act~. · Naturally, our war vessels are not required to pay the and the serviee for. which they were intended. , · tolls, because if they did pay them, it would merelY be a Mr. President, I submit that the amendment . shoUld be matter of chargi:p.g on one side of the ledger and crediting voted down. on the other. An account of such tolls is kept so that to Mr. McADOO. Mr. President; I should like to say a .word that extent there is a compliance with the Panama Canal in answer to the distinguished Senator from Mi&SourL Act, as passed, in view of .the construction placed upon the­ I will take up, .first, the point that these ships are a life international treaty. ; line between Ancon and New York. They are not a life line Mr. COPELAND. Mr. President,· I wish to say just' a few between Ancon and New York, but if they were, this amend­ words about the amendment. I have the deepest synipathy ment would not interfere with the continuation of the life with what the Senator from California has in mind. The line. On the contrary, when these ships are put into service~ Pacific coast has been put in a very serious situation by the they will be a greater life line than the obsolete ships we now · withdrawal from service of the intercoastal vessels of digni­ have, even though they are operated temporarily through fied size. It had those fine ships, the California, the Penn:.. the Canal to California. sylvania, and the Virginia. They were taken off the service. Mr. President, these ships are not operated merely for The Grace Line has abandoned the service because of its the employees of the Government~ as the Government em­ cost. The ships which are being built by the Panama Rail­ ployees in the Canal Zone and other American residents in road Co. are magnificent ships. They have a passenger the zone are not dependent wholly upon these ships at all, capacity of about 200, and, as I recall, refrigeration space of although they use them from time to time. The fact that about 100,000 feet. Is that correct? the operation of these ships by the Panama Railroad Co. Mr. McADOO. I think so. has always been a profitable enterprise shows that the ships Mr. COPELAND. They are ideally constructed for the have been used chiefiy in carrying commerce between the needs of California. .Canal Zone and the east coast of the United States. Mr. President, as a member of the subco~mittee of the · It is not proposed to interfere with that service. The new Committee on Appropriations dealing with the Army appro­ ships have a much greater capacity than the old ships. ;priation bill, and having been for a long time its chairman, In order to make them profitable to the Panama Railroad Co. I have not been very well satisfied with the idea that th€J they have been provided with larger· cargo space than the Army was engaged in the operation of steamships. There old ships, and larger passenger accommodations. Naturally has been a profit in the combined steamship and railroad the operators want to sell that space to the public. operations of the Panama Railroad Co., and these ships are The temporary diversion of these ships---and by that I being built out of the revenues of the railroad, out of the mean giving a 2 weeks' service to Panama instead of a weekly profits of the system. They have not been a· burden in the service-is not going to affect the people in Panama at all ordinary sense upon the Treasury. Three ships are under seriously, because everyone in the steamship business knows construction. The first of these will be finished in January, that the Panama Canal, on the east side, has a great surplus as I understand. of transportation, far in excess of any demand, and that if we Mr. CLARK. In December. could send a part of that surplus transportation to the Mr. COPELAND. Then, of course, there are th~ present Pacific coast it would probably be very profitable. three ships. 1938 CONGRESSIONAL RECORD-SENATE 6619

I heard the Senator from Kentucky [Mr. BARKLEY] speak would be fair to the other ships using the Canal. About 160 about the thinness of the service. If the old ships and the ships use the Canal. If three ships escape the penalty of new ones were continued in operation I can see that there paying tolls, the other ships will naturally consider that to be would be very complete service between New York and the · unfair. Panama Canal and the Pacific coast. My judgment is that the only ships passing through the Of course, there enters the question of competition. I Canal that are free from tolls are warships, naval ships. suppose that these ships, being Government-owned in the But anyway, Mr. President, because of my interest in Cali­ true sense and Government-operated, would not be subject fornia, I am going to vote with the Senator from that to the Canal tolls, would they, may I ask the Senator from State, no matter what the fate of his amendment may be; California? I do not feel free to speak for the committee in the matter. Mr. McADOO. Oh, yes; they would be subject to the If the amendment should be passed upon favorably by the Canal tolls just the same. Canal tolls are now being lost Senate, of course, it would be taken to conference and dealt because of the withdrawal of the other ships of the service. with on its merits. If these ships were put into the service, a large part of the Mr. VANDENBERG. Mr. President, I am frankly amazed revenue which otherwise is lost would be restored. to hear the statement made by the Senator from New York Mr. CLARK. Mr. President, will the Senator yield? that he would accept the amendment, in view of the fact Mr. COPELAND. I yield. that he has joined with the others of us in asserting that we Mr. CLARK. The Senator from California surely does not dare not set the precedent of granting operating subsidies for contend that the ships of the Panama Railroad Co. would intercoastal ships, which is precisely what this amendment pay tolls for going through the Canal? does, unless there is a proviso against operating loss. Mr. McADOO. Certainly they would pay tolls. All ships Mr. President, the reason ships are not operating on this going through the Canal pay tolls. route is that three of them lost $1,000,000 a year. If they Mr. CLARK. Do Government ships pay tolls? lose a million dollars a year again under some other man­ Mr. McADOO. Yes; they do. All ships do. agement-and I very much doubt whether the previous man­ Mr. CLARK. I beg pardon of the Senator from Califor­ agement could be improved-then they will receive an op­ nia, but he is entirely mistaken. The Panama Railroad Co. erating subsidy of $1,000,000. That operating subsidy will go owns the ships. The Senator -from California is entirely to an intercoastal operation; and if it goes to one inter- mistaken on that point. , coastal operation, it should go to all 200 other intercoastal Mr. McADOO. The Panama Railroad does not own the operations, and there is no possible defense when the re­ Panama Canal. The ships of the Panama Railroad _are mainder of these operators ask for equivalent treatment. under a separate corporation. If they go through the Canal, Mr. President, if in the development of new merchant­ under the terms of the Canal Tolls Act, they pay tolls. marine legislation we are suddenly and at the last moment to Mr. CLARK. Mr. President, the Senator from California interject into it the principle of intercoastal operating sub­ is entirely mistaken about that. The ships owned by the sidies, we shall have a novelty. I sympathize with the able Panama Railroad Co. go through the Panama Canal with­ Senator from California in the difficult situation which he out payment of tolls. is confronting. I congratulate him upon the pertinacity Mr. McADOO. They may go through for servicing, or with which he has sought to find some back door or side something like that, but if they operate in the passenger door or second-story window through which he could climb and commercial service, they certainly must pay tolls under into the legislative structure with some sort of means to put the Panama Canal T-olls Act. these ships back on the Pacific Ocean. I concede that he Mr. CLARK. The Senator is entirely mistaken. has now discovered what is a rather painless camouflage for Mr. McADOO. All our vessels, naval and otherwise, going an intercoastal operating subsidy. The fact remains that the through the Panama Canal pay tolls. proposal is a subsidy for intercoastal shipping, and if thes~ Mr. CLARK. Mr. President, will the Senator from New three ships are entitled to a subsidy, every other ship in the York yield to me for one statement? intercoastal trade of the United States is entitled to it. I Mr. COPELAND. I yield. do not believe the Senate is prepared to set such a precedent · Mr. CLARK. The Senator from California's recollection this afternoon. is certainly very short, because in the hearings held before Mr. McADOO. Mr. President, notwithstanding the elo .. the Committee on Interoceanic Canals in January of this quence of the Senator from Michigan, the proposal before year the fact that naval vessels were permitted to go through us is not a subsidy. the Canal and that other Government vessels were permit­ Mr. VANDENBERG. Mr. President, will the Senator yield ted to go through the Panama Canal free of tolls was pre­ for just a moment? cisely one of the points urged by the Senator from Califor­ Mr. McADOO. I yield. nia to show that the United States had a right to permit Mr. VANDENBERG. It would not be a subsidy if the Sen­ all vessels of American registry to go through free of tolls ator would accept the amendment which I proposed to him, if it wanted to. That argument was based on the statements but which he rejected. of the representatives of the War Department, the repre­ Mr. McADOO. I wish to explain why it is not a subsidy. sentatives of the State Department and other Government The Panama Railroad will operate these ships. Of course, representatives. · if a loss is incurred, the loss can be paid out of the treasury Mr. McADOO. I :first had the impression that the vessels of the Panama Railroad. Like any other ships, these ships of the United States went through the Canal without paying will have to pay the tolls for passage through the Panama tolls. I was subsequently informed by an official of the War Canal. I do not think the ships will run at a loss. I think Department that that was incorrect. I do not recall what the ships, with their larger available refrigerating space, a was shown by the hearings, but I am told that all vessels­ sufficiency of which we have never had in any ships that have our vessels as well as other vessels-going through the Pan­ been operated on the coast, will produce a profit on their ama Canal pay Canal tolls. The British made the protest. operation. If they produce a pro.fit, I ask the Senator from that the Hay-Pauncefote Treaty applied, and that all ves­ Michigan if that is a subsidy. He says it is a subsidy be­ sels, theirs as well as ours, should go through the Canal on cause he assumes there will necessarily be a loss in the oper­ exact equality. ation of the ships for 1 year. Mr. COPELAND. Mr. President, I am glad to yield to my Let me say to my distinguished friend from Michigan that colleague, because this is the first argument which has oc­ the circumstances under which previous losses have been curred in the Senate for some time in which I have not been incurred are entirely altered for the next year. engaged. It is rather a relief to me. Mr. VANDENBERG. The Senator has asked a question. However, if the tolls were not paid by the ships under con­ May I be permitted to answer it? sideration, the question would arise at once whether that Mr. McADOO. I will yield for a question. LXXXIII--417 6620 CONGRESSIONAL RECORD-SENATE MAY 11 Mr. VANDENBERG. No; I want to answer the question always gone to surplus funds. Suppose it should cost two or which the Senator asked me. three hundred thousand dollars for 1 year; I believe-and I The Senator asked me whether I think his proposal is a hope I am justified in the belief-that the Senate of the subsidy. The answer is "yes"; I think it is a subsidy. I think United States would. be willing to contribute that pitiful sum there will be a loss, for two reasons: The first reason is that to give my State a fair and square deal in a matter of such invariably there has been a loss in recent years. The second importance. · reason, and the most persuasive, is that the Senator is un­ The PRESIDING OFFICER. The question is on agreeing willing to accept an amendment which guarantees against to the amendment offered by the Senator from California a loss. [Mr. McADOO], Mr. McADOO. Mr. President, I shall first answer the Mr. CLARK. Mr. President, I suggest the absence of ·a statement with reference to subsidy. quorum. For many years we have tried to obtain vessels with a The PRESIDING OFFICER (Mr. OVERTON in the chair). type of refrigeration which would permit the shipment by The clerk will call the roll. water of citrus fruits. Such fruit~ must have specific The Chief Clerk proceeded to call the roll. -refrigeration in order that they may be transported for such Mr. CLARK. I ask unanimous consent to be permitted to a great distance as the 3,000 miles which intervene between withdraw my suggestion of the absence of a quorum, and ask the west coast and the east coast. Static refrigeration will for a division. not accomplish that end. It is necessary to have what is The PRESIDING OFFICER. Without objection, it is -so now called circulatory refrigeration, as I remember the ordered. technical term. The ships which have ·been operating in Mr. McADOO. I suggest the absence of a quorum. the service were not originally built to carry citrus fruits The Chief Clerk called the roll, and the following Senators and other perishable commodities, and therefore they were answered to their names: · not equipped with the necessary refrigeration. The proper Adams Copeland Johnson, Colo. Overton Andrews Davis King Pittman type of refrigeration was subsequently installed experimen­ Ashurst Dieterich La Follette Pope tally, but the space devoted to that purpose proved to be Austin Donahey Lee Radcl11fe wholly inadequate. The result was that such ships could Bailey Du1fy Lodge Reynolds Bankhead Ellender Logan Russell tansport only a relatively small percentage of the citrus­ Barkley l!,razier Lonergan Schwartz fruit crop of the State of California. The imperative cry Berry George Lundeen Schwellenbach Bilbo . Gerry McAdoo ·Sheppard has gone up each year ·for more ships with adequate refrig­ Borah Gibson McCarran Shipstead eration facilities to handle the immense crop that we have Brown, Mich. Gillette McGill Smathers to sell in the eastern markets. Brown, N.H. Glass McKellar Thomas, Okla. Bulkley Guffey McNary Thomas, Utah I am informed that the new ships will have increased Bulow Hale Maloney Townsend facilities, and that the space which will be used for the Burke Harrison Miller Truman purpose of carrying citrus fruits will be profitably used for Byrd Hatch Milton Tydings Byrnes Hayden Minton Vandenberg that purpose, because shippers pay a _very large price to Capper Herring Murray Van Nuys transport citrus fruits from the west coast to the east coast. Caraway Hill Neely Walsh Chavez Hitchcock Norris White So far as losses are concerned, let me say to the dis­ Clark Holt Nye tinguished Senator from Michigan that he assumes that Connally Johnson, Calif. O'Mahoney because ships which have not provided the necessary facili­ The PRESIDING OFFICER. Eighty-six Senators having ties have run at a loss, therefore a precedent is established answered to their names, a quorum is present. from which no other ships, however well constructed, may be expected to depart. TAX REVISION-CORRECTION OF ENROLLMENT So far as the passenger traffic is concerned, the ships Mr. KING. Mr. President, at the request of the chairman heretofore have had a seasonal passenger traffic. I am in­ of the Committee on Finance, I report favorably from that formed that very little traffic has existed between the east committee, Senate Concurrent Resolution 32, and ask unani­ and west coasts by water during the summer season. The mous consent .for its immediate consideration. new ships will be operating during a year when the amount The PRESIDING OFFICER. The clerk will read the con­ of traffic will be enormously increased by the great exposi­ current resolution for the information of the Senate. tions on both coasts. The Chief Clerk read the concurrent resolution (S. Con. Of course, one can only make an estimate. I can only Res. 32), as follows: conjecture as to what the business of the company will be Resc:zved by the Senate (the House of Representatives concurring), for the following year. I think perhaps I am a little more That m the enrollment of the bill (H. R. 9682) to provide revenue, familiar with the problem than is the Senator from Michi­ equalize taxation, and for other purposes, the Clerk of the House is authorized and directed, in subparagraph (2) of section 22 (d) gan, because I live in California. I think perhaps my opin­ relating to inventories in certain industries, to insert after the ion is as good as the opinion of anyone else as to what the phrase "after December 31, -1938, of raw materials" the following loss, if any, will be. However, suppose there should be a parenthetical expression: "(including those included in goods in process and in finished goods)", to strike out the following: "(B) small loss in the operation of the ships. The company is not yet included ln goods in process or finished goods; and", and making money, and it can absorb the loss for one year to strike out "(C)" and insert "(B)". without any demand whatever upon the Treasury of the United States. In addition, if the ships should not run to Mr. McNARY. Mr. President, I do not know that I quite the west coast the Panama Canal administration would understand the purpose of the concurrent resolution. not receive the tolls or the revenue which otherwise it would Mr. KING. Mr. President, this concurrent resolution re­ receive from the operation of the ships. The operation of lates to Senate amendment No. 10 as adopted in conference. the ships would make a distinct contribution to the Canal The amendment was intended to permit the use of the so­ revenues, which, of course, go into the Treasury of the called last-in first-out method of costing sales by the smelt­ United States. ing and refining, copper- and brass-mill products, and tan­ Mr. President, I think the hoary subsidy bogy has been ning industries. shaken before the eyes of the Senate so much that many The language used in the amendment as adopted in con­ persons have become unduly alarmed about it. No subsidy ference might be construed as making this method available is involved that need worry anybody. In any event, no sub­ only to the tanners, excluding the two metal industries. The sidy will come out of the Treasury of the United States, be­ concurrent resolution seeks to correct this situation by in­ cause, as I said before, if the Panama Railroad, which is a serting the same language with respect to the two metal in­ separate corporation, operates the ships and incurs a slight dustries as is used in respect of the tanners. loss the loss will not come out of the Treasury of the United Mr. WALSH. Mr. President, is not this a concurrent reso­ States. & I understand, the profits of the company have lution to correct an amendment offered by the Senator from 1938 · CONGRESSIONAL RECORD-SENATE 6621 Connecticut [Mr. LoNERGAN] which the committee unanf;. plies and materials, but contracts for · the construction of mously agreed should be corrected? ships are not subjected to this 40-hour provision. Mr. KING. The Senator's statement is accurate; that is, Whether the law is good or bad, it ought to have uniform an amendment was agreed to by the committee that related application; it should apply to all contractual activities of to leather, brass products, and nonferrous metals, but the the Government, and there should not be any exception in conference report, it is claimed, fails to correctly state the the case of merchant vessels, especially when we have made amendment, and the resolution is to present the true situa­ the law applicable to the construction of naval vessels. tion. M KING. Mr. President, may I ask the Senator a Mr. McNARY. I have no objection. question? ' The PRESIDENT pro tempore. The question is on agree­ Mr. WALSH. I yield. ing to the concurrent resolution. Mr. KING. What effect would it have upon the cost of The concurrent resolution was agreed to. vessels? Mr. WALSH. I assume that if we should ask the Maritime THE MERCHANT MARINE Cominission that question they would say the adoption of the The Senate resumed the consideration of the bill (S. 3078) amendment would increase the cost. I must assume they to amend the Merchant Marine Act, 1936, and for other would say that, and I think that is true in respect to the build­ purposes. ing of naval vessels, but the fact is that practically all the The PRESIDING OFFICER. The question is on the shipbuilding concerns in the country are on a 40.;.hour-week amendment offered by the Senator from California [Mr. basis already. So this amendment, if adopted, would not McADoo]. materially affect them. The intent of the public contract Mr. DUFFY. Mr. President, in reference to the dispute law was to· make the 40-hour limitation of a workweek apply as to whether vessels operated by the Panama Railroad to construction as well as the procurement of materials that would pay toll, let me say that I was present at the hearing go into the construction. I must frankly say ·to the Senator which the Senator from Missouri mentioned. I think he is that I think any expert of the Government would say that mistaken. I believe, while vessels of the United States Navy the adoption of the amendment would probably result in some are not required to pay tolls, as the Panama Railroad Co. is increase in cost. I cannot say anything to the contrary. · a separate corporation, that it would have to pay tolls for Mr. COPELAND. Mr. President, this matter was presented its vessels which transited the Canal. Very seldom do they to the committee by the American Federation of Labor, and, transit the Canal, but I am informed that at such times as in turn, we sent it to the Maritime Commission. That Com­ they have done so they have been required to pay tolls. mission in a letter say: I merely make the statement so that there may be no The ·commission is of the opinion that . the objectives of the confusion as· to the facts. I do not think it makes any act h.ave little relation to shipbuilding. They appear to have been intended for factory conditions rather ' than construction material difference. Personally, I am ppposed to the work. amendment. · The PRESIDING OFFICER. The question is on agreeing The Commission oppose the proposal. ' to the amendment offered by the Senator from California I have· also a letter which was written to the Senator [Mr. McADOO]. from Utah [Mr. THoMAs] by the Maritime Commission Mr. VANDENBERG. I ask for the yeas and nays. taking the same position. The yeas and nays were not ordered. There is a saving clause, however, in the amendment of The amendment was rejected. the Senator from Massachusetts, being the last provision of the amendment giving the President of the United States Mr. WALSH. Mr. President. • I send to the desk an amend­ ' some discretion. ment which I ask to have stated. Mr. WALSH. · If the President should think that the ap­ The PRESIDING OFFICER. The amendment will be plication of the public contract law would not be in the stated. interest of national defense, he could suspend it. All the The CHIEF CLERK. It is proposed to insert, on page 55, amendment does is to make the present law applicable to after line 6, the following: the building of merchant ships as it is now applicable to the SEc. 47. The construction, alteration, furnishing, or equipping building of naval vessels. of any merchant vessel authorized by this act, or the construction, alteration, furnishing, or equipping of any merchant vessels with Mr. COPELAND. I ask that the letters to which I have funds from any appropriation available for such purposes, con­ referred be printed in the RECORD. tracts for which are made after June 30, 1938, shall be in ac­ The PRESIDING OFFICER. Without objection the let­ cordance with the provisions of Public Law 846, Seventy-fourth ters will be printed in the RECORD. Congress, approved June 30, 1936, unless such course, in the judg­ ment of the President of the United States, should not be in the The letters referred to are as follows: interest of national defense. UNITED STATES MARITIME COMMISSION, Washington, April 22, 1938. ~ Mr. KING. Mr. President, I should like an explanation Han. ROYALS. COPELAND, . of the amendment; and I inquire what business has it in Chairman, Committee on Commerce, United States Sena:te. this measure? MY DEAR SENATOR: This letter is in response to your letter of March 16, 1938, enclosing a copy of a letter addressed to you on Mr. WALSH. Mr. President, under the so-called public March 10, 1938, by William C. Hushing, national legislative rep­ contract law every contract entered into by the Government resentative, American Federation of Labor, wherein Mr. Hushing suggests an amendment to the Merchant Marine Act, 1936, provid­ for the purchase of supplies and materials is subjected to the ing that the Walsh-Healey Public Contracts Act be observed in the provisions of that law which has to do with hours of employ­ construction of ships. ment and specifies the 40-hour week and Ininimum wages. The Walsh-Healey Act (U. S. C., title 41, sees. 35 to 45, inclusive) By ruling of the Attorney General, the construction of naval provides for the observance of certain labor standards in regard to minimum wages and maximum hours, health and safety fea­ and merchant ships was held not to be included within the tures of working conditions, and the use of child labor and convict terms of the law. The result is that the law applies to all labor. It applies to contracts to which the United States is a contracts for materials and supplies, but not the construction party for the fabrication of materials and supplies. The Commission is of the opinion that the objectives of the act of naval and merchant ships. The amendment I have offered have little relation to shipbuilding. They appear to have been makes the law applicable to the building of merchant ships. intended for factory conditions rather than construction work. No In the naval-authorization bill recently passed this exact reason appears for requiring a shipyard to keep detailed employ­ ment records for the regulation of conditions which do not apply language was embodied, so that when contracts are asked for to it. Other labor standards, such as hours and wages, will, the the building of naval vessels they are subjected to this law. Commission believes, be adequately and more satisfactorily regu­ The only activity of the Government which is not now sub­ lated in shipyards through the normal course of collective Jected to it is the building of merchant ships. NavY yards bargaming. The present high cost of shipbuilding is a matter of concern are subjected to it in the building of naval vessels, and even to the Commission. In the interest of the merchant-marine pro­ private yards are subjected to it in the procurement of sup- gram, it is of first importance that nothing shall be done that will 6622 CONGRESSIONAL RECORD-SENATE MAY 11 have a tendency, as this proposal would have, to inject elements an employer covered by the covenant gullty of an unfair labor of uncertainty into or increase the cost of shipbuilding. practice, would, under the terms of the bill, be tantamount to a For these reasons the Commission does not favor the proposed finding of a breach of covenant. This fact imposes a restraint amendment. upon the exercise of the right of an employer to resist a chazge Very sincerely yours, of unfair labor practices, by reason of the additional penalt y which E. S. LAND, Chairman. might be incurred if the decision of the Board should go against him, and thereby injects further uncertainty into any situation to Han. ELBERT D. THOMAS, which the law may be applicable. Chairman, Committee on Education and Labor, 3. The bill is uncertain regarding the effect of a :finding of United States Senat.e. breach of covenant by the National Labor Relations Board. The MY DEAR SENATOR: Under date of February 24, 1938, you requested b1ll provides, unequivocally, that such a :finding by the Board shall the views and recommendations of the Commission with respect to be final and conclusive for the purposes of the act, and that no s. 3390, "A bill to provide for guaranties of collective bargaining in person found by the Board to have breached any such covenant contracts entered into, and in the grant or loan of funds by, the shall thereafter be entitled to bid on any contract, or apply for United States, or any agency thereof, and for other purposes." any loan or grant. The effect of such a finding in impelling the The bill bears a close resemblance to the Walsh-Healey Public contracting agency of the United States to cancel the contract, Contracts Act (U. S. C., title 41, sees. 35 to 45, inclusive). The grant, or loan because of such breach, is left to implication. The Walsh-Healey Act was designed to extend the basic labor standards mere existence of such a finding, however, with respect to any per­ of the N. R. A. with respect to hours and wages to contracts to son with whom the Commission might have a contract for ship which the United States is a party. The bill under consideration construction, construction-differential subsidy, or operating-dif­ has followed the same method in extending the guaranties of ferential subsidy, would raise a question of propriety dispropor­ collective bargaining. It provides, in substance, that-- tionate to the Commission's larger responsibUity in regard to such (a) In every contract to which the United States is a party for contracts. the fabrication or furnishing of materials, the contractor shall For these reasons the Commission believes that the practical covenant, on behalf of himself, his subcontractors, and any other implications of the bill are inimical to the administration of person having a part in the fabrication or furnishing in such mate­ the Merchant Marine Act of 1936. If enacted, it would tend to rials, that (1) they will comply with all orders of the National delay and impede the development of the merchant-marine pro­ Labor Relations Board; (2) they will not engage in any unfair gram. Constractors would inevitably experience delay in their labor practices; and (3) they will comply with any certification of dealings with subcontractors and materialmen through the caution employee representation, regardless of whether they are otherwise of the contractor in seeking safety in his commitments and the subject to the provisions of the National Labor Relations Act. reluctance of subcontractors and materialmen to enter into con­ (b) In every grant or loan of funds by the United States, the tracts which enlarge their obligations. Moreover, the application person receiving such grant or loan shall covenant, on behalf of of the statute would tend to increase bids because of the efforts himself, his subsidiaries, and other persons participating in the of bidders to protect themselves against unforeseen contingencies benefits of such loan or grant, that ( 1) · they will comply with all beyond their control. Such results would delay the progress and orders of the National Labor Relations Board, including certifica­ increase the cost of the merchant-marine program. tions of employee representation; (2) they will not engage in any The Commission is opposed, in principle, to the imposition unfair labor practices; and (3) they will submit any quest ion con­ upon contractors of responsibility for the broad labor policies at cerning employee representation to the Board, regardless of whether subcontractors and materialmen, and believes, for this reason, they are otherwise subject to the provisions of the National Labor that the bill should not be approved. In any event the Commis­ Relations Act. sion is of the opinion that the bill, if enacted, would so unduly (c) Upon breach of any such covenant the agency of the United hamper the Commission's program under the Merchant Marine States which entered into the contract or made the grant or loan Act of 1936 that, in the public interest, the building and opera­ may cancel the contract, grant, or loan, without prejudice, and tion of ships should be exempted from the provisions of the bill. proceed otherwise for its own protection. Very sincerely yours, (d) The National Labor Relations Board may investigate the E. S. LAND, Chairman. performance of all such covenants for suspected breaches thereof, and any finding of a breach by the Board shall be conclusive. · Mr. COPELAND. Mr. President, so far as I am concerned, (e) No person found by the Board to have breached any such I have no objection to the amendment going to conference. covenant may thereafter bid on any contract or apply for any The PRESIDING OFFICER. The question is on agreeing loan or grant as long as such finding is outstanding. (f) Purchases customarily made in the open market, farm prod­ to the amendment offered by the Senator from Massachusetts ucts processed by the original producer, and the railroad ind1,1stry [Mr. WALSH]. are exempted from the provisions of the act. The amendment was agreed to. There can be no objection, of course, to the broad purpose of extending to employers and employees engaged in the performance Mr. SffiPSTEAD. Mr. President, I have an amendment of public contracts the fixed policies of the Government with on the desk which I ask to have read and considered at this respect to collective bargaining. From the standpoint of the prac­ time. tical operation of this bill, however, the Commission believes that . The PRESIDING OFFICER. The amendment will be its application to the building and operation of ships would create such difficulties and uncertainties as to seriously hamper the stated. administration and progress of the merchant-marine program for The CHIEF CLERK. On page 33, line 19, after the word the following reasons: "practice", it is proposed to insert a colon and the following 1. The covenants required of the contractor include persons over whom he has no control. proviso: In one instance the contractor is required to covenant in behalf Provided, That the minimum-rate provision of this section shall of himself, his subcontractors, and any other person who furnishf>s not apply to common carriers on the Great Lakes. or fabricates any of the material under the contract. As applied to shipbuilding, it would be difficult for a contractor even to iden­ Mr. COPELAND. Mr. President, there is justification for tify all of the persons concerned in the chain of furnishing and this proposal because 95 percent of the ships on the Great fabricating such materials. The difficulty, not to say impossib111ty, Lakes are contract carriers, and they are not affected in any of discharging his obligation with respect to their labor relations is· obvious. way. Only 5 percent of the ships are common carriers, and In another instance the person who receives any grant or loan those ships are in competition with Canadian ships. It is is required to covenant in behalf of himself, his subsidiaries, "and an entirely different matter than that of seeking to deal with any other person participating or sharing directly or indirectly in such loan or grant." The difficulty of identifying the persons in­ our Qwn shipping and to keep it on the same plane of parity. cluded in the scope of the covenant is inherent, in this instance, in Therefore, so far as I am concerned, I have no objection to the meaning of "direct or indirect" participation. After such per­ takihg the amendment of the Senator from Minnesota to sons are known, the covenantor would have no sufficient control conference. over them to enable him to discharge his obligation to the Govern­ ment with respect to them. If this provision were made applicable The PRESIDING OFFICER. The question is on agreeing to the Commission's operating-differential subsidy contracts, as it to the amendment offered by the Senator from Minnesota appears that it would be if enacted, it would introduce a serious [Mr. SHIPSTEADL element of uncertainty into that program. 2. The required covenants are uncertain in themselves as re­ The amendment was agreed to. gards their performance. Mr. HOLT. Mr. President, I offer an amendment to the It would, no doubt, be possible for the contractor, or any other pending bill. person included in the terms of the covenant, to comply with the The PRESIDING OFFICER. The amendment will be orders of tile National Labor Relations Board, including any certifi­ cation by the Board with respect to the representation of employees. stated; The order or certificate would be definite in form and clear in its The CHIEF CLERK. On page 46, line 8, after the word implications. "commerce", it is proposed to insert a colon and the follow­ It would not be possible, however, for the covenantor, or ~ther person included in the covenant, to know definitely that he had ing proviso: or had not engaged in an unfair labor practice until the decision Provided, however, That any owner or operator of a wharf or pier of the Board had been rendered. The decision of the Board, :findtng or dock equipped with mechanical facilities for loadlng, unloading, 1938 . CONGRESSIONAL RECORD-SENATE 6623 storing, or processing coa.l, and used exclusively for such purpose The PRESIDING OFFICER. Without objection, the or purposes, shall not be considered a maritime employer for the amendment will be printed in the RECORD, and its reading will purpose of this act. be dispensed with. Mr. HOLT. Mr. President, all I ask is that the amend­ Mr. RADCLIFFE's amendment proposes to insert at the end ment be considered by the Senate, and, if possible, be sent to of the bill the folio wing: conference and be there considered. SEC. • The Merchant Marine Act, 1936, is hereby amended by Mr. COPELAND. Mr. President, I have no objection to adding at the end thereof a new title to read as follows: the amendment going to conference. We gave the matter ''TITLE -FEDERAL SHIP MORTGAGE INSURANCE study in both committees-the Committee on Education and "SEc. 1001. As used in this title- Labor and the Committee on Commerce-and we felt that "(a) The term 'mortgage' means a preferred mortgage as defined there was much of merit in the proposal. In the confusion in the Ship Mortgage .Act, 1920, as amended; "(b) The term 'vessels' includes all types of self-propelled pas­ of things, however, we took no positive action on it. senger, cargo, and combination passenger-cargo carrying vessels So far as I am concerned, I have no objection to the documented under the laws of the United States, and fishing ves­ amendment. · sels owned by citizens of the United States, but shall not include scows, dredges, lighters, tugs, towboats, showboats, barges, canal Mr. HOLT. I thank the Senator. boats, car floats, and floating canneries or floating reductiun plants: The PRESIDING OFFICER. The question is on agreeing Provided, That any vessel which the Secretary of the Navy certifies to the amendment offered by the Senator from West Vir­ to the Commission is capable of serving as a naval or military ginia [Mr. HOLT]. auxiliary in time of war or national emergency shall be included within the term 'vessels'; The amendment was agreed to. "(c) The term 'mortgagee' includes the original lender under a Mr. COPELAND. Mr. President, all day yesterday the mortgage and his successors and assigns approved by the Com­ Senator from Maryland [Mr. RADCLIFFE] sat here hoping to mission; have an opportunity to offer an amendment. "(d) The term 'mortgagor' includes the original borrower under a mortgage and his successors and assigns approved by the Com­ Mr. RADCLIFFE entered the Chamber. mission; and Mr. COPELAND. The Senator from Maryland is now "(e) The term 'maturity date' means the date on which the present. mortgage indebtedness would be extinguished if paid in accordance With periodic payments provided for in the mortgage. . I was about to say that Senate bill 2900 passed the Senate "SEc. 1002. There is hereby created a Federal ship mortgage unanimously on January 5. While the language of that bil1 insurance fund (hereinafter referred to as the 'fund') which shall differs from the language of the House bill on the same sub­ be used by the Commission as a revolving fund for the purpose of ject, it would seem to me a good plan to adopt as an amend­ carrying out the provisions of this title, and there shall be allocated to such fund the sum of $1,000,000 out of funds made available to ment the bill which the Senate has already considered and the Commission \lnder the appropriation authorized by section on that account is familiar with, and then the differences 1009. Moneys in the fund shall be deposited in the Treasury of 'between the two Houses may be worked out in conference. the United States to the credit of the fund or invested in bonds or The bill which the Senator from Maryland had presented other obligations of, or guaranteed as to principal and interest by, the United States. The Commission may, with the approval of the was identical with the House bill. There are some features Secretary of the Treasury, purchase debentures issued under the of the Senate bill which, in my opinion, are superior to the provisions of section 1005. Such purchases shall be made at a language of the House bill; but if the Senate language were price which, on a yield basis, would provide an investment yield of not less than the yie~d obtainable from other investments (hav­ used, as passed here, the whole matter would be in confer­ ing comparable maturity dates) authorized by this section. Deben­ ence, and if there should be any differences they could be tures so purchased shall be canceled and not reissued. i!'oned out, or any necessary adjustments made.' "SEC. 1003. The Commission is authorized, upon application by · Mr. RADCLIFFE. Mr. President, unfortunately I did not the mortgagee, to insure as here_inafter Pt:Ovided any mortgage offered to it which is eligible for insurance as hereinafter provided hear all that was said by the Senator from New York in and, upon such terms as the Commission may prescribe, to make regard to this matter. Even at the risk of repetition, I desire commitments for the insuring of any such mortgage prior to the to say that the amendment I have offered corresponds exactly date of execution or disbursement thereon. The aggregate amount of principal obligatio_ns of all mortgages insured under this title In wording to the amendment which was incorporated in and outstanding at any one time shall not exceed $200,000,000. House bill 10315, which is now before the Senate committee. "SEc. 1004. (a) To be eligible for insurance under this title a It also corresponds in substance to Senate bill 2900, which mortgage shall, excepting as otherwise provided in section 1006: passed the Senate some time ago, and also to the companion "(1) have a mortgagee approved by the Commission as respon­ sible and able to service the mortgage properly; and a mortgagor bill of Senate bill 2900 which passed the House some months approved by the Commission as possessing the ability, experience, ago. financial resources, and other qualifications necessary to the ade­ The reason why the procedure regarding my amendment quate operation and maintenance of the mortgaged property; is followed out is because of the following facts: Upon fur­ "(2) involve an obligation in a principal amount which does not exceed 75 percent of the cost (as estimated by the Com­ ther consideration of this subject, especially after the pas­ mission) of the construction, reconstruction, or reconditioning sage of the Federal Housing bill, it was deemed wise to go financed by the loan or advance, but in no event .to exceed 75 per­ over the matter very carefully again in close cooperation with cent of the amount which the Commission estimates will be the the Maritime Commission and the Federal Housing Commis­ value of the property when the construction, reconstruction, or reconditioning is completed; sion. The changes which have been made as a result do not "(3) secure an obligation having a. maturity date satisfactory to affect the substance of the bill but are merely as to certain the Commission but not to exceed 20 years from the date of its procedure and methods of operation. They are quite in ac­ execution; "(4) contain amortization provisions satisfactory .to the Com­ cordance with the views which have been reached after con­ mission requiring periodic payments by the mortgagor; sultation with the Maritime Commission and the Housing "(5) secure an obligation bearing interest (exclusive of premium Commission. Such being the case, it would seem very much charges for insurance) at a rate. not to exceed 5 percent per annum better that the amendment I offered should be agreed to, and on the amount of the principal obligation outstanding at any time or not exceed 6 percent per annum 1! the Commission finds that in that we should not utilize Senate bill 2900. certain areas or under special circumstances the mortgage market I therefore urge that the amendment which I have sent to demands it; the desk be accepted. If that is done, no action will be taken "(6) provide, in a. manner satisfactory to the Commission, for be the application of the mortgagor's periodic payments to amortiza­ on Senate bill 2900, which will allowed to lapse; and the tion of the principal of the mortgage, exclusive of the amount companion House bill to Senate bill 2900 will also be allowed allocated to interest and to the premium charge which is required to lapse.- for mortgage Insurance as hereinafter provided; The PRESIDING OFFICER. The amendment offered by "(7) contain such terms and provisions with respect to the con­ struction, reconstruction, reconditioning, maintenance, or opera­ the Senator from Maryland to the pending bill will be stated. tion of the property, repairs, alterations, payment of taxes, insur­ Mr. COPELAND. Mr. President, it is a long amendment, ance, delinquency charges, revisions, foreclosure proceedings, an­ and· is essentially the same as Senate bill 2900, which has ticipation of maturity, additional and secondary liens, and other to matters pertinent to the security as the Commission may pre­ passed the Senate. I have no objection the amendment, scribe; and and I am sure the committee will not have any objection, " ( 8) secure a new loan or advance made to aid in financing the because the committee has considered the bill. construction, ~ reconstruction, or reconditioning, subsequent to the 6624 CONGRESSIONAL RECORD-SENATE MAY 11 enactment of this title, of \"essels owned by citizens of the United pality, or local taxing authority. They shall be paid out of the States which are designed principally for commercial use (a) in fund,_which shall be primarily liable therefor, and they shall be the coastwise or intercoastal trade; (b) on the Great Lakes, or on fully and unconditionally guaranteed as to principal and interest bays, sounds, rivers, harbors, or inland lakes of the United States; by the United States, and such guaranty shall be expressed on the · or (c) in foreign trade between the United States and foreign face of the debentures. In the event that the fund fails to pay countries in continental North America, and between the United upo:o. demand, when due, the principal of, or interest on, any States and all islands lying between the continent of South Amer­ debentures so guaranteed, the Secretary of the Treasury shall pay ica and the United States in the Gulf of Mexico, the Caribbean to the holders the amount thereof, which is hereby authorized to Sea, or the Atlantic Ocean. be appropriated out of any money in the Treasury not otherwise "(b) No mortgage shall be accepted for insurance unless the appropriated, and thereupon to the extent of the amount so paid Commission finds that the property or project with respect to the Secretary of the Treasury shall succeed to all the rights of the which the mortgage is executed is economically sound. holders of such debentures. "(c) The Commission is authorized to fix a premium charge for "(d) Notwithstanding any other provision of law relating to the the insurance of mortgages under this title, but in the case of acquisition, handling, or disposal of property by the United States, any mortgage such charge shall not be less than an amount equiva­ the Commission shall have the right to complete, recondition, re­ lent to one-half of 1 percent per annum nor more than an amount construct, renovate, repair, maintain, operate, or charter, or sell equivalent to 1 percent per annmp. of the amount of the for cash or credit, in its discretion, any properties conveyed to it principal obligation of the mortgage outstanding at any time, in exchange for debentures as provided in this section; and not­ without taJctng into account delinquent payments or prepayments. withstanding any other provision of law, the Commission shall also All such premium charges shall be payable by the mortgagee as have power to pursue to final collection, by way of compromise or prescribed by the Commission. In the event that the principal otherwise, :.>.11 claims against mortgagors assigned by mortgagees to obligation of any mortgage accepted for insurance under this sec­ the· Commission as provided in this section. tion is paid in full prior to the maturity date, the CommJ.a:;ion is "SEc. 1006. No provision of this title shall be construed to au­ further authorized in its discretion to .require the payment by the thorize the Commission to insure a mortgage securing any loan mortgagee of an adjusted premium charge in such amount as the or advance made prior to the enactment of this title and no mort­ Commission determines to be equitable, but not in excess of the gage shall }?e insur~d for refinancing in whole or in part any aggregate amount of the premium charges that the mortgagee existing mortgage indebtedness except- would otherwise have . been required to pay if the mortgag.e had " ( 1) where a substantial portion of the total amount to be continued to be insured under this section until such maturity secured by the new .mortgage shall be applied to new construc­ date. . tion, reconditioning, or reconstruction of one or more of the " (d) The Commission is authorized to charge and collect such mortgaged vessels: Provided, however, That the aggregate amount amounts as it may deem reasonable for the investigation of appli­ of all mortgages insured under this paragraph and outstanding cations for insurance, for the appraisal of properties offered . for at any one time shall not exceed $20,000,000, and provided that insurance, for the issuance of commitments, and for the inspec­ all of the eligibility requirements of section 1004 not inconsistent tion of such properties during construction, reconstruction, or with this paragraph are complied with; reconditioning: Provided, That such charges shall not aggregate "(2) where the Commission ·has insured a mortgage under the more than one-half of 1 percent of the original principal amount provisions of this title, and the mortgagor thereafter makes appli­ of the mortgage to be insured. All moneys received under the cation to the mortgagee or another lender for an additional loan provisions of this title shall be deposited in the fund. or advance for reconditioning or reconstructing the mortgaged "SEc. 1005. (a) In any case in which the mortgagee under an property, the Commission may insure a new mortgage in ' the insured mortgage shall have foreclosed and acquired title and amount of the principal outstanding balance of the original mort­ possession of the mortgaged property in accordance with regula­ gage plus the amount of the new loan, provided the total amount tions of, and within a period to be determined by, the Commis­ is within the limits of section 1004 and the new mortgage con­ sion, or shall, with the consent of the Commission, have other­ forms to all other eligibility requirements thereof; and wise acquired such property from the mortgagor after default, "(3) the Commission may insure mortgages given to finance the mortgagee shall be entitled to receive the benefits of the in­ the purchase of vessels theretofore acquired by the fund under surance as hereinafter provided, upon ( 1) the prompt conveyance the provisions of section 1005 and to secure loans or advances to· the Commission of title to the property which meets the re­ made for reconditioning and reconstruction of such vessels. quirements of rules and regulations of the Commission in force "SEc. 1007. Whoever, for the purpose of obtaining any loan or at the time the mortgage was insured, and which is evidenced in advance of credit from any person, partnership, association, or the manner prescribed by such rules and regulations, and (2) the corporation with the intent that such loan or advance of credit · assignment to the Commission of all claims of the mortgagee shall be offered to or accepted by the Commission for insurance, against the mortgagor or others, arising out of the mortgage or for the purpose of obtaining any extension or renewal of any transaction or foreclosure proceedings, except such claims as may loan, advance of credit, or mortgage insured by the said Commis­ have been ·released with the consent of the Commission. Upon sion, or the acceptance, release, or substitution of any security such conveyance and assignment the obligation of the mortgagee on such a loan, advance of credit, or for the purpose of influencing to pay the premium charges for insurance shall cease and the in any way the action of the said Commission under this title, Commission shall, subject to the cash adjustment hereinafter makes, passes, utters, or publishes, or causes to be made, passed, provided, issue to the mortgagee debentures having a total face uttered, or published any statement, knowing the same to be value equal to the balance of the principal obligation of the false, or alters, forges, or counterfeits, or causes or procures to mortgage which was unpaid on the date of the institution of fore­ be altered, forged, or counterfeited, any instrument, paper, or closure proceedings, or on the date of the acquisition of the document, or utters, publishes, or passes as true, or causes to be property after default other than by foreclosure. In the event that uttered, published, or passed as true, any instrument, paper, or the mortgagee acquires the property other than by purchase at document, knowing it to have been altered, forged, or counter­ foreclosure sale after foreclosure proceedings have been instituted, feited, or willfully overvalues any security, asset, or income, shall debentures having a total face value equal to the balance of the be guilty of a misdemeanor and punished as provided under principal obligation of the mortgage which was unpaid on , the section 806 (b) of this act. . date of the institution of foreclosure proceedings shall be issued to "SEc. 1008. The Commission is authorized and directed to make the mortgagee. such rules and regulations as may be deemed necessary or appro­ "(b) Debentures ,issued under this section shall be in such priate to carry out the purposes and provisiCJns of this title. form and denominations in multiples of $50, shall be subject to "SEc. 1009. There is hereby authorized to be appropriated the such terms and conditions, and shall include such provisions for sum of $1,000,000 and such further sums as may be necessary to redemption, if any, as may be prescribed by the Commission with .carry out the provisions of this title." the approval of the Secretary of the Treasury, and may be in coupon or registered form. Any difference between the value of The PRESIDING OFFICER. The question is on agreeing the mortgage determined as herein provided and the aggregate to the amendment offered by the Senator from Maryland face value of the debentures issued, not to exceed $50, shall be adjusted by the payment of cash by the Commission to the mort­ [Mr. RADCIFFE]. gagee from the fund. The amendment was agreed to. " (c) The debentures issued under this section shall be executed in the name of the fund as obligor, shall be signed by the chairman The PRESIDING OFFICER. If there be no further of the Commission by either his written or engraved signatur~. amendment to be proposed, the question is on the engross­ and shall be negotiable. All such debentures shall be dated as of ment and third reading of the bill. the date foreclosure proceedings were instituted, or the property was The bill was ordered to be engrossed for a third reading, otherwise acquired by the mortgagee after default, and shall bear interest from such date at a rate determined by the Commission, and was read the third time. with the approval of the Secretary of the Treasury, at the time the Mr. COPELAND. Mr. President, I ask unanimous con­ mortgage was offered for insurance, but not to exceed 3 percent sent that the Committee on Commerce be discharged from per annum, payable semiannually on the 1st day of January and the 1st day of July of each year, and shall mature 3 years after the further consideration of House bill 10315, which is the the 1st day of July following the maturity d_ate of the mortgage on companion bill of the House, and that it be placed on the the property in exchange for which the debentures were issued. Senate Calendar in order that I may move that the text They shall be exempt, both as to principal and interest, from all taxation (except surtaxes, estate, inheritance, and gift taxes) now of the bill we have just acted upon may be substituted for or hereafter imposed by the United States, by any Territory, de­ all the language after th~ enacting clause of the House bill. pendency, or possession thereof, or by any State, county, munici- That will take the matter into conference. 1938 CONGRESSIONA~ RECORD-SENATE 6625

The PRESIDING OFFICER. Is· there objection to the re­ Mr. KING. Mr. President, I am in accord with the con~ quest of the Senator from New York? The Chair hears none, eluding observations of the Senator from Tennessee. I am and it is so ordered. in favor of a ·merchant marine; but we are not obtaining Mr. McKELLAR. Mr. President, I have no objection to one, though we are squandering hundreds of millions of the request· of the Senator from New York; but in the dollars in the attempt to obtain one. The policy which we event that we do not have a yea-and-nay vote on the are adopting under this bill will not result in building a mer­ passage of the bill I desire to state that I am opposed to chant marine. We shall continue to spend tens of millions of the bill, and if there were a yea-and-nay vote I certainly dollars under this bill, but we shall not achieve the result should vote against it. which is anticipated. Mr. COPELAND. Mr. President, I now move that the As I was stating, we have squandered billions of dollars Senate proceed to the consideration of House bill 10315. since the World War in attempting to build up a fieet to The PRESIDING OFFICER. The question is on the mo~ carry our trade with foreign nations; but our efforts have tion of the Senator from New York. been in vain. The measure now before us is worse than the The motion was agreed to; and the Senate proceeded to one which it seeks to amend, and that was bad enough. This consider the bill (H. R. 10315) to amend the Merchant is piling Pelion on Ossa. It is a bad bill; bad in its construc­ Marine Act, 1936, to further promote the merchant marine tion, bad in its implications, bad in the commitments which policy therein declared, and for other purposes. it makes, and the Amercan people will regret its passage. Mr. KING. Mr. President, I share the views just ex­ The PRESIDING OFFICER. The question is on agreeing pressed by the Senator from Tenessee EMr. McKELLAR]. to the amendment of the Senator from New York, which is I am opposed to this bill for many reasons. I think it rests to strike out everything after the enacting clause in the bill upon an improper and an unsound base. I think we are not as it passed the House, and to substitute the Senate bill as justified in embarking . on a measure of this character, amended. carrying subsidies of an unlimited amount for the opera­ The amendment was agreed to. tion of merchant ships. The amendment was ordered to be engrossed, and the bill In view of our labor and economic and industrial policies, to be read a third time. I do not know whether or not we shall ever have an ade­ The bill was read the third time and passed. quate and suitable merchant marine. Prior to the Civil The PRESIDING OFFICER. Without objection, Senate War, 87 percent of all of our foreign trade and commerce, bill 3078 will be indefinitely postponed. exports, and imports, was carried in American bottoms~ Mr. COPELAND. I move that the Senate insist upon its After that period a tariff system in the interest of cer­ amendment, ask for a conference with the House thereon, tain manufacturers, particularly those engaged in the iron and that the Chair appoint the conferees on the part of the and steel industry, was imposed upon the country, as a Senate. result of which our ships were driven from the seas. Great The motion was agreed to; and the Presiding Officer ap­ Britain and other maritime nations took possession of the pointed Mr. COPELAND, Mr. SHEPPARD, Mr. BAILEY, Mrs. CARA­ sea, and American bottoms carried but about 10 or 15 per­ WAY, Mr. CLARK, Mr. MCNARY, and Mr. GIBSON conferees OD cent of American foreign commerce. the part of the Senate. In . this bill and in other measures we are establishing SALE OF SOUVENIRS IN PUBLIC BUILDINGS AND PARKS policies which make it impossible for us to compete with other nations in ship construction and ship operation. We Mr. BONE. Mr. President, on March 2, 1938, I introduced are driving Americans from the sea as seamen, and too often Senate Joint Resolution 273, ,which is very brief, and which are manning the few ships we have with aliens and with relates to the sale of souvenirs in public buildings and parks persons who are not in sympathy with our form of govern­ of the United States. It provides, generally, that- ment or with our institutions. It is now insisted that we After January 1, 1939, it shall be unlawful for any person to sell or offer to sell, in any public building, public park, or other shall grant large subsidies in order to build up a merchant place belonging to or under the control and jurisdiction of the fieet. United States or any agency thereof, any article which purports After the World War we had over 3,000 American ships. to be a souvenir of any such building, park, or other place, unless We attempted to operate some of them, perhaps more than such article be made or manufactured of mate_!ial produced or manufactured in the United States or a Territory, possession, or a thousand, but the losses were enormous. In the aggre­ dependency thereof. gate, I think we expended iil the construction of ships and in their operation more than four or five billion dollars. Mr. President, I think one- of the most astonishing situa­ Many of the ships were taken out to sea· and sunk. Some tions one confronts is that in the great public parks in the were taken to junk piles, and the steel and iron of which United States souvenirs descriptive of the objects of natural they were constructed were recovered and devoted to other beauty in the parks are found to be manufactured in Japan, uses. Notwithstanding the millions we have spent and the Czechoslovakia, or some other foreign country. A little dish, millions we are now spending, however, we have made no made perhaps of pewter or some other metal, bearing a pic­ progress in developing a merchant marine. In my opinion, ture of a mountain or some other prominent object of beauty the enactment of this bill will not hasten the construction of in a park, is found upon examination to have stamped on ships and will not hasten the building of a fieet adequate the under side the words "Made in Japan." Even replicas to meet our needs. of the Capitol, as my good friend the Senator from New York Mr. McKELLAR. Mr. President, will the Senator yield? EMr. CoPELAND] suggests, are manufactured in foreign coun­ Mr. KING. I yield. tries. Little totem poles, colored and manufactured in Euro­ Mr. McKELLAR. For fear I may be misunderstood, I pean countries, are offered for sale; and all this while should like to state that I am very much in favor of an thousa~ds of boys in this country are idle or find refuge in American merchant marine. Since I have been . in the C. C. C. camps or in W. P. A. relief operations. Congress I probably have voted for too many bills for that The other day a party was held in Washington at which purpose. None of them has been successful. many ladies were present, and little favors were on the My reason for opposing this bill is that a year and a tables, one of which I secured for the purpose of illustrating half ago we passed a bill similar to this one, and now we to the Senate the desirability of enacting the very brief piece are passing another one. The former bill, to my mind, was of proposed legislation which I have tendered. It was a of very doubtful propriety, and this one is of even more George Washington birthday party, and little hatchets were doubtful propriety. I do not believe it will do what is distributed. This [exhibiting] is one of them. It is a very claimed for it. For that reason I am opposed to the bil1, patriotic-looking hatchet, colored red, white, and blue, but but not because I am opposed to an American merchant down in one comer of it appear the words "Made in Japan." marine. I realize as much as anyone that we should build I have made bold to suggest to Mr. Aubrey Williams and it up; but I think this is the wrong way to do it. the office of Mr. Hopkins that an a.llocation of money be 6626 . CONGRESSIONAL RECORD-SENATE MAY ll made by W. P. A. so that some of the young men in the Mr. AUSTIN. Mr. President, I should like to ask the Sena­ West, and in other sections of the country, for that matter, tot· from Missouri whether it is his purpose to proceed with who are unemployed may at least be given an opportunity the consideration of the bill at this time. . to manufacture the souvenirs which are sold in such plen­ Mr. TRUMAN. It is. teous quantities in our public bUildings and national parks Mr. AUSTIN. I do not desire to delay the Senator, but and other places throughout the country. It is a simple there is a companion bill relating to the same subject, and thing, to be sure, but it would be so much better, if we are the subject is deserving of a great deal of study and con­ going to spend money for relief purposes, to give our boys sideration. . an opportunity at least to turn their hand to something Mr. BARKLEY. Mr. President, this is a bill pertaining to which, undoubtedly, is a source of considerable revenue to a question which has been the subject matter of bills on the producers in foreign countries. calendar for a year. We took up Senate bill No. 2 in the I do not like to take the time of the Senate on something first session of this Congress and discussed it for several which is not worth while; but we do have the problem of days, and no conclusion was reached on that bill. The mat­ unemployment in this country, and here is a sizable busi­ ter, was practically abandoned so far as that measure was ness operation, for the American is a strange sort of per­ concerned. Efforts were made to reconcile differences be­ son-he will buy souvenirs; we notice that every day. Every tween the departments and the sponsors of the bill, and fair we attend has a dozen or perhaps a hundred stands negotiations have been proceeding ever since in an attempt selling canes and all sorts of little souvenirs. So, Senators, to work out a bill which could be reasonably agreed .upon it has become quite a sizable business, and it seems to me, without much controversy. so long as we are engaged in relief operations, .some money Those interested have not been able to get absolutely might be made available to enable our idle men and boys together on a bill, ·but the bill which was introduced by to engage in this kind of activity. the Senator from New York [Mr. CoPELAND] and reported I see no way whereby the Congress of the United States from the Committee on Commerce is the bill which is now may assist in inaugurating what seems to me, at least, to be the subject of the motion of the Senator from Missouri. a worth-while operation, except by . the passage of a law. In the meantime the Senator from Missouri [Mr. TRUMAN], It is true we cannot tell business what to produce and what who is chairman of a subcommittee of the Committee on not to produce, but we do have the power, Mr. President, Interstate Commerce · which studied this subject and held to prescribe what sort of material may be sold in a public exhaustive hearings on it, has offered an amendment in the place, such as a park or a publlc building. nature of a substitute. So that the question will be between I make bold now merely to mention this matter, as I have the bill of the Senator from New York which was has been heretofore written Mr. Williams about it. Not- long ago, if reported, and the substitute offered by the Senator from my memory serves me aright, Mrs. Roosevelt made some Missouri. The -subject matter of the proposed legislation reference to it in a public address which she delivered deal­ has been before the Senate for more than a year, and it is ing with relief problems. I hope the idea appeals to Sena­ very important that action be had upon it at the very tors, and I hope the committee in charge of the bill . will earliest possible date. A bill has been reported to the House report it, unless Senators feel that there is a legal principle of Representatives from the House committee, and the House involved with which they cannot find themselves in harmony. has entered upon a partial consideration of the bill, but has The joint resolution is in the hands of the Committee on laid it aside to take up the relief legislation which is now Public BUildings and Grounds; and if there are any members pending. of that committee present, I hope that they will lend an It was the purpose to proceed to consider the bill sought to attentive ear to what I have been saying and at least give be made the unfinished business, not necessarily to vote this proposal an opportunity to be passed on by the Senate. on it today, but the subject matter is of such great impor­ Mr. ANDREWS. Mr. President, along the same line as the tance to the whole aviation industry that it was thought remarks of the Senator from Washington [Mr. BoNE], let me desirable that the Senate proceed to the consideration of the say that last year at Tampa, Fla., in connection with the bill at the earliest possible date. celebration of Constitution Week, I attended a large banquet Mr. AUSTIN. Mr. President, perhaps I do not understand at which time everyone was given a small American flag, what the bill is. probably 2 by 3 inches in size. After the flags were handed The PRESIDING OFFICER Nevada [Mr. MESSAGE FROM THE HOUSE McCARRAN]. A message from the House of Representatives, by Mr. Mr. TRUMAN. Mr. President, I made the motion at the Calloway, one of its reading clerks, announced that the House request. of the Senator from Nevada. had agreed to the amendment of the Senate to the joint Mr. BARKLEY. Mr. President, this motion is agreeable resolution (H. J. Res. 623) making available additional funds to the Senator from Nevada. for the United States Constitution Sesquicentennial Com­ Mr. AUSTIN. Very well. My purpose in intervening was mission. only to· be sure that we did not act in the absence of the DEVELOPMENT AND REGULATION OF CIVIL AERONAUTICS Senator from Nevada. I see he is now in the Chamber. Mr. KING. Mr. President, I am not surprised when meas­ Mr. TRUMAN. Mr. President, I move that the Senate ures are presented calling for new Federal bureaus, depart­ proceed to the consideration of Senate bill 3845, which is ments, Federal agencies, and great increases in the number the so-called civil aeronautics bill. of Federal employees. Scores of new Federal agencies have Mr. KING. Let the bill be stated. been created during the past few years, and each bureau and The PRESIDING OFFICER. The clerk will state the bill agency so created extends its authority and jurisdiction and by title. is manned by hundreds and in some instances with thou­ · The CmEF CLERK. A bill

for nothing1 but offering inducements to obtain mail arm to be extended for its defense. So some of us have contracts. gone into the subject from two standpoints-first, the de­ The principle of competitive bidding may have merit in velopment of air commerce, the development of the indus­ the purchase of wheat or corn, but it just does nwt work in try, and the promotion and encouragement of the science; purchasing a highly technical air-transport service. Air and, secondly, from the standpoint of national defense. transport cannot and will not have a normal or healthy Active consideration by Congress of proposals for air legis­ development until this vicious method of awarding new lation, leading to the present situation, dates from the routes is changed to allow intelligent selection of the routes Seventy-third Congress when the cancelation of prior do­ to be served, and of those best qualified to operate them mestic air-mail contracts occurred. economically and safely. My first bill, S. 3187, was introduced on March 26, 1934 Sound legislation, administered by a strictly nonpolitical (73d Cong., 2d sess.), and referred to the Committee on Com­ body, will make air transport much more efficient than it merce. That bill proposed the creation of a separate com­ now is, and will unquestionably result in convincing the mission to regulate air commerce, which was defined as traveling public of its safety. A sufficient volume of busi­ transportation by aircraft on scheduled operations for hire. ness will eventually_be developed so that the Government's Broadly, the bill related only to the economic regulation of unit cost of air-mail services can be considerably reduced. air transportation. The public and investors will also be furnished with factual At the same time there were pending proposals to provide a information on air transportation, dispelling the mysteries new law for perpetuation of the contract system of providing surrounding it, and eliminating the chiseling aviation ex­ air-mail and air-transportation services. These measures perts who are now exploiting both the industry and the _prevailed over the bill to create an aviation commission, and Government under the existing spoils system. were enacted as the Air Mail Act of June 12, 1934. That Since the enactment of the Air Commerce Act of 1926, act specifically provided in sections 20 and 21 for the ap­ numerc-us attempts have been made to improve the legis­ pointment by the President of a special commission- - lation regulating commercial aviation. All these attempts For the purpose of making an immediate study and survey, and have failed for one reason: They have mixed together the to report to Congress • • • its recommendations of a broad regulations for both private flying and air transport. I policy covering all phases of aviation and the relation of the United think it should be pointed out that we cannot expect to States thereto. have unified support for any such legislation from the dis­ This concluded action in the Seventy-third Congress. tinctly different classes of aviation. Moreover, it seems ap­ In the first session of the Seventy-fourth Congress, on parent that in insisting on legislation of that type, the January 22, 1935, I again introduced a bill, S. 1332, provid­ politically minded factions of both Government and indus­ ing for a separate commission to regulate air commerce. try are using this very real need for different types of regu­ This bill, however, defined air commerce not only as the lation to creat dissension in the ranks of aviation, and transportation of persons or property, although-not limited thus block any sound legislation. to scheduled operations, but also as the navigation of aircraft I most sincerely wish to impress upon the Senate two out­ in the conduct or furtherance of a business. In addition, the standing facts: bill embraced provisions for registration and rating of air­ First. That the economic prestige which aviation may craft and rating of airmen, air lines, and schools, as well enjoy in the future largely depends on the degree of safety as provisions authorizing the commission to make recom­ provided in air transportation. No systematized, progressive mendations to the Secretary of Commerce concerning the legislation -can have our sanction unless it makes ample pro­ establishment of air-navigation facilities. vision for safety, not only for the traveling public who would On January 31, 1935, the President transmitted the re­ use the air as a means of getting around but as well for the port of the Federal Aviation Commission

JlSSAYER OF 'l'HE MINT Frank Whitton Govern Martin Andrew Compton The legislative clerk read the nomination of Paul J. Alfred Pembroke Thorn, 3d Robert Beardsworth Lewis Dowd, of Philadelphia, to be assayer of the Mint of the Robert Lindsay Zobel Eugene Maurice Martin United States at Philadelphia, Pa. Joseph Thomas Caples Clifford D. Dangerfield The PRESIDING OFFICER. Without objection, the nom­ John Thomas Cangelosi William Nelson Donovan ination is confirmed. Julius Snyder Robert Lysle Findley Adanto Arcangelo Secondo Frank Gordon Stephens UNITED STATES PUBLIC HEALTH SERVICE D'Amore. Forrest Edgar Hull The legislative clerk read the nomination of Lloyd D. Felton to be senior surgeon. POSTMASTER The PRESIDING OFFICER. Without objection, the nomi­ INDIANA nation is confirmed. Charles Lebo, Winamac. The legislative clerk read the nomination of George E. Waterman to be assistant dental surgeon. The PRESIDING OFFICER. Without objection. the nom­ HOUSE OF REPRESENTATIVES ination is confirmed. WEDNESDAY, MAY 11, 1938 . POSTMASTER The House met at 11 o'clock a. m. Th·e legislative clerk read the nomination of Charles Lebo The Chaplain, Rev. James Shera Montgomery, D. D., to be postmaster at Winamac, Ind. offered the following prayer: The PRESIDING OFFICER. Without objection, the nom­ ination is confirmed. Thou, eternal God, our Father, teach us the high art of IN mE ARMY living and working in concord and cooperation. We pray Thee to inspire our whole land with great courage and The legislative clerk proceeded to read sundry nominations · patriotism that the evils which so easily beset us may be 1n the Army. speedily diminished; thus may contentment and peace be Mr. SHEPPARD. Mr. President, I ask that the Army nom­ accentuated throughout the Union. Hasten, blessed Lord• . inations be confirmed en bloc. the coming of the Kingdom of Happiness in all classes and The PRESIDING OFFICER. Without objection, the nom­ conditions of our fellow citizens. Oh, may they dauntlessly inations are confirmed en bloc. grasp the larger and the higher realities of life. Quicken us Mr. SHEPPARD. I ask also that the President be notified with the power of that faith which soars to the throne of of the confirmation of these nominations, because one or two divine grace: Stir and direct our wills to do Thy will as of these men will have passed the age limit by Friday. it The PRESIDING OFFICER. Is there objection to the re­ is done in heaven. 'nlrough Christ our Savior. Amen. quest of the Senator from Texas? The Chair hears none, The Journal of the proceedings of yesterday was read and and the President will be notified. approved. RECESS MESSAGE FROM mE SENATE The Senate resumed legislative session. A message from the Senate, by Mr. Frazier, its legislative Mr. BARKLEY. I move that the Senate take a recess clerk, announced that . the Senate had mtssed, with an until 12 o'clock noon tomorrow·. amendment, in which the concurrence of the House is re­ The motion was agreed to; and of May 4, 1938, the joint resolution Public Health Service. shall be read by sections for amendment under the 5-minute rule. George E. Waterman to be assistant dental surgeon in the It shall be in order to consider without the intervention of any point of order any amendment offered by direction of the Com­ United States Public Health Service. mittee on Appropriations. At the conclusion of such considera­ APPOINTMENTS IN THE REGULAR ARMY tion the Committee shall rise and report the joint resolUtion to the House with such amendments as may have been adopted, and MEDICAL CORPS the previous question shall be considered as ordered on the joint To be first lieutenants resolution and the amendments thereto to final passage without intervening motion except one motion to recommit with or with­ Dell Fred Dullum Jack Percy Scott out instructions. Richard Leland Bohannon John Brancato Mr. RANKIN. Mr. Speaker, I ask unanimous consent to Ralph Moody Patterson Ralph Townsend Artman Charles Francis Haughey Raymond Harold Bunshaw address the House for 1 minute. Frank Charles Eaton The SPEAKER. Without objection, it is so ordered. Hyman Richard Osheroff There was no objection. Wayne Sigvart Hagen Melvin Frederic Eyennan James Peter Pappas Norman Everett Peatfield RURAL ELECTRIFICATION ADMINISTitATION Arnold Lorentz Ahnfeldt Hubert Thomas Elders Mv. RANKIN. Mr. Speaker, today is the third anniversary· Frank Wilson Threadgill Robert Walker Robinson of the creation of the Rural Electrification Administration, John Joseph Pelosi Elwood Erwin Baird an agency that has done more for the farmers of this ·Nation,