1650 CONGRESSIONAL RECORD-SENATE JANUARY 31 municipalities, and school districts can be financed directly ness of the company, together with a list of stockholders, by the Reconstruction Finance Corporation; to the Com for the year ended December 31, 1933, which, with the ac mittee on Banking and Currency. companying papers, was referred to the Committee on the 1970. By Mr. PERKINS: Letter from Charles V. Bacon, District of Columbia. Mahwah, N.J., opposing the excise tax on coconut oil; also REPORT OF THE GEORGETOWN GASLIGHT CO. telegram from William King, Hohokus, N.J., opposing excise As in legislative session, tax on coconut oil and other imported oils; and a telegram The VICE PRESIDENT laid before the Senate a letter from Albert Grundy, River Edge, N.J., opposing excise tax on from the vice president of the Georgetown Gaslight Co., coconut oil and copra; to the Committee on Ways and transmitting, pursuant to law, a detailed statement of the Means. business of the company, together with a list of stockholders, 1971. By Mr. RUDD: Petition of Munay & Flood, New for the year ended December 31, 1933, which, with the ac York City, favoring the passage of House bill 5632; to the companying papers, was refened to the Committee on the Committee on Agriculture. District of Columbia. 1972. By Mr. STRONG of Pennsylvania: Petition of Woman's Christian Temperance Union of Indiana County, REPORT OF THE CHESAPEAKE & POTOMAC TELEPHONE CO. Pa., favoring enactment of House bill 6097, to regulate the As in legislative session, motion-picture industry; to the Committee on Interstate and The VICE PRESIDENT laid before the Senate a letter Foreign Commerce. from the president of the Chesapeake & Potomac Telephone 1973. Also, petitions signed by 7,658 citizens of Armstrong, Co., trainsmitting, pursuant to law the report of tne com Cambria, Indiana, and Jefferson Counties, Pa., petitioning pany for the calendar year 1933, io be substituted for the the Congress of the United States to act at once to safeguard report submitted on January 9, 1934, in which report the the inherent rights of the American people relative to the operations of the company for the month of December were radio; to the Committee on Merchant Marine, Radio, and estimated only, which, with the accompanying paper, was Fisheries. referred to the Committee on the District of Columbia. 1974. By Mr. THOMASON: Petition of residents of the BALANCE SHEET OF THE CHESAPEAKE & POTOMAC TELEPHONE CO. Sixteenth Congressional District of Texas, regarding the As in legislative session, broadcasting of certain radio programs; to the Committee The VICE PRESIDENT laid before the Senate a letter on Merchant Marine, Radio, and Fisheries. from the president of the Chesapeake & Potomac Telephone 1975. Also, petition of residents of Leakey, Tex., urging Co., transmitting, pursuant to law, a comparative general repeal of the Economy Act; to the Committee on Appropria balance sheet of the company for the year 1933, which, with tions. the accompa,nying paper, was referred to the Committee on 1976. By Mr. WADSWORTH: Petition numerously signed the District of Columbia. relating to freedom of the radio; to the Committee on Mer chant Marine, Radio, and Fisheries. PETITIONS AND MEMORIALS 1977. By Mr. WERNER: Petition of citizens of the Second As in legislative session, Congressional District, South Dakota, requesting Congress to The VICE PRESIDENT laid before the Senate a telegram act at once to safeguard the inherent rights of the Ameri from Dr. Anna G. Franklin, of Tulsa, Okla., relative to the can people relative to the radio; to the Committee on Mer operations of the N.R.A. and her opportunity to make a chant Marine, Radio, and Fisheries. livelihood, which was referred to the Committee on Banking 1978. By Mr. WOLFENDEN: Petition signed by Robert and Currency. Gray Taylor, of Media, Pa., and 38 others, urging passage of He also laid before the Senate resolutions adopted by the the Costigan-Wagner antilynching bill; to the Committee on Independent Merchants Association of Oregon, commending the Judiciary. the attitude of the Senator from Idaho [Mr. BORAH] and the Senator from North Dakota [Mr. NYE] in their efforts to revive the operation of the Sherman Antitrust Law, which SENATE were referred to the Committee on the Judiciary. WEDNESDAY, JANUARY 31, 1934 He also laid before the Senate the petition of Charles McAdam, of Danville, Ill., praying for the passage of a Sen Chicago Railways Co. receivership, and also on the expiration of the recess. the instigation of criminal proceedings in relation thereto, THE JOURNAL which was referred to the Committee on the Judiciary. Mr. CAPPER presented a resolution adopted by the On request of Mr. ROBINSON of Arkansas, and by unani mous consent, the reading of the Journal for the calendar Woman's Christian Temperance Union, of Los Angeles, days January 27 and January 30 was dispensed with, and Calif., favoring the passage by Congress of a resolution pro the Journal was approved. posing an amendment to the Constitution for the purpose of excluding aliens in counting population for apportionment MESSAGE FROM THE HOUSE of Representatives among the several States, which was A message from the House of Representatives, by Mr. referred to the Committee on the Judiciary. Haltigan, one of its clerks, announced that the House had REPORTS OF COMMITTEES passed a bill (H.R. 6604) to establish the composition of the United States Navy with respect to the categories of As in legislative session, vessels limited by the treaties signed at Washington Febru Mr. CAPPER, from the Committee on Claims, to which ary 6, 1922, and at London April 22, 1930. at the limits pre was referred the bill (S. 85) for the relief of Paul J. Sisk, scribed by those treaties; to authorize the construction of reported it with an amendment and submitted ai report certain naval vessels; and for other purposes, in which it (No. 246) thereon. / requested the concurrence of the Senate. Mr. STEPHENS, from the Committee on Claims, to which was referred the bill (S. 2053) for the relief of Capt. L. P. INCOME TAXATION Worrall, Finance Department, United States Army, reported Mr. McKELLAR. I wish to give notice that tomorrow as it without amendment and submitted a report (No. 247) soon as I can obtain the floor I expect to address the Senate thereon. briefly on the subject of income taxation. Mr. CONNALLY, from the Committee on Public Buildings REPORT OF WASHINGTON GAS LIGHT CO. and Grounds, to which was referred the bill CS. 1804) to As in legislative session, authorize the transfer of certain real estate by the Secretary The VICE PRESIDENT laid before the Senate a letter of the Treasury to C. F. Colvin in settlement of the North from the president of the Washington Gas Light Co., trans field, Minn., post-office-site litigation, and for other pur mitting, pursuant to law, a detailed statement of the busi- poses, reported it without amendment. 1934 CONGRESSIONAL RECORD-SENATE 1651
1m.Ls INTRODUCED appropriation bill the matter commencing with line 2 on As in legislative session, page 10, down to and including line 10, on page 45, and to Bills were introduced, read the first time, and, by unani insert in lieu thereof a substitute covering appropriations for mous consent, the second time, and referred as follows: the Bureau of Indian Affairs, intended to be proposed by By Mr. BORAH: them to House bill 6951, the Interior Department appropria A bill (S. 2544) for the relief of William T. Putman and tion bill, which was ref erred to the Committee on Appro John A. Peterson; to the Committee on Claims. priations and ordered to be printed. By Mr. McNARY: HOUSE BILL REFERRED A bill (s. 2545) to extend the times for commencing and completing the construction of a bridge across the Columbia As in legislative session, River at or near Astoria, Oreg.; and The bill Montana; to the Coµunittee on the Judiciary. point and appropriately referred three communications from By Mr. FLETCHER (by request): residents of Pennsylvania relating to the oil industry. The A bill CS. 2548) authorizing and directing the Commis first, written by Hon. Frank E. Baldwin, auiitor general of sioners of the District of Columbia to place on the pension Pennsylvania, and the second, written by Mr. J. R. Livezey, rolls the name of Theodore U. Cargill; to the Committee express alarm and protest against the report that the Sec on the District of Columbia. retary of the Treasury is recommending elimination of the By Mr. GIBSON: percentage depletion clause of the revenue act, while Mr. J. A bill (S. 2549) for the relief of Albert W. Harvey; to Stratmeyer, of Reading, Pa., advises that the oil industry the Committee on Claims. seeks relief from the 1-cent excise tax on oil and gasoline. By Mr. PATTERSON: There being no objection, the communications were re A bill CS. 2550) granting an easement over certain lands f erred to the Committee on Finance and ordered to be to the Springfieid Special Road District in the county of printed in the RECORD, as follows: Greene, State of Missouri, for road pw·poses; to the Com COMMONWEALTH OF PENNSYLVANIA., mittee on the Judiciary. OFFICE OF AUDITOR GENERAL, By Mr. BAILEY: Harrisburg, January 27, 1934. A bill CS. 2551) to amend the Agricultural Adjustment Hon. JAMES J. DAVIS, Act in respect to the processing tax on hogs; to the Com United States Senator, Washington, D.O. mittee on Agriculture and Forestry. DEAR SENATOR DAvrs: Our oil producers in this section of Penn sylvania are very much alarmed by the report that the Treasury A bill CS. 2552) for the relief of Charles C. Bennett; Department is recommending the elimination of the percentage A bill (S. 2553) for the relief of the Brewer Paint and depletion clause in sections 114 (b) (2), (3), and (4). Wall Paper Co., Inc.; and - Section 114 (b) (3) is the one that provides for percentage A bill CS. 2554) for the relief of Cohen, Goldman & Co. depletion for oil and gas wells. The oil industry is very im portant in Pennsylvania, and if this section were eliminated it Inc.; to the Committee on Claims. would impose a very great hardship upon the producers of Mc A bill (S. 2555) granting a pension to Emory M. Farrar; Kean County, as they are producing oil under a flooding system and which means they get the oil out of the ground much sooner than they otherwise would and the depletion of a territory is very A bill CS. 2556) granting a pension to Ann E. Rickards; to large. the Committee on Pensions. Will you not interest yourself in seeing that section 114 (b) (3) By Mr. THOMPSON: is retained in any new revenue act that may be passed? I assure A bill (S. 2557) to investigate the claims of and to enroll you your interest will be appreciated by all of those engaged in certain persons, if entitled, with the Omaha Tribe of Indians; the oil business. Trust you are in the best of health, and with kind personal to the Committee on Indian Affairs. regards, I remain, yours sincerely, By Mr. REYNOLDS: F. E. BALDWIN. A bill (S. 2558) for the relief of William J. Cocke; to the Committee on Claims. PHILADELPHIA, PA., January 23, 1934. A bill (S. 2559) to prohibit the transmission through the Hon. JAM.ES DAVIS, United States mails of gaming devices pertaining to lottery Senate Office Building, Washington, D.O. to DEAR SENATOR DAVIS: The Ways and Means Committee of the and gift enterprises and literature pertaining thereto; House of Representatives is considering certain changes in the the Committee on Post Offices and Post Roads. present income tax law which will vitally affect any oil- or gas INTERNATIONAL PETROLEUM EXPOSITION AT TULSA, OKLA. producing properties. The present Federal income tax law provides for a depletion de As in legislative session, duction of 27Y2 percent of the gross income or 50 percent of the Mr. GORE. Mr. President, I desire to introduce a joint net income derived from oil and gas properties. The subcommittee resolution and ask that it lie on the table. I will callJt up has recommended a 25-percent reduction in such allowance. The Secretary of the Treasury has recommended the entire elimination tomorrow. of such allowance. If either of these recommendations is adopted, The VICE PRESIDENT. Without objection the joint a heavy increase in Federal income tax will be imposed upon resolution will be received. everyone deriving income from oil and gas properties. The joint resolution (S.J.Res. 80) authorizing the Presi The equity and justice of such allowances have been recognized 11'1 all Federal income tax laws during the past 15 years. Although dent to invite the States of the Union and foreign countries the methods of determining the amount of such allowances have to participate in the International Petroleum ~position at been changed from time to time, Congress has never seen fit to Tulsa, Okla., to be held May 12 to M1ty 19, 1934, inclusive; deprive people owning oil royalties or engaged in the oil business was read twice by its title and ordered to lie on the table. of these just and reasonable allowances. In view of the serious and detrimental effet:t which the elimination of these allowances AM.ENDMENT TO INTERIOR DEPARTMENT APPROPRIATION BILL would have upon us and everyone engaged in the oil business, I would most sincerely ask you to demand that the fair and reason As is legislative session, able provisions of the present law be left undistqrbed. Mr. WHEELER and Mr. FRAZIER submitted an amend Yours very truly, ment proposing to strike out in the Interior Department JOHN R. LIVEZEY. 1652 CONGRESSIONAL RECORD-SENATE JANUARY 31
READING, PA., January 23, 1934. E. H. Eddleman, care of the Planning and Coordi~ating Com- Senator JAMES J. DAVIS, mittee, Willard Hotel, Washington, D.C. • Washington, D.C. J. D. Collett, Fort Worth, Tex . DEAR Sm: The·on industry as a whole is endeavoring to be re L. E. Barrows, P.O. box 1160, Fort Worth, Tex. lieved of the unjustifiable tax which is placed on gasoline and Fred C. Sealey, care of the Texas Co., Houston, Tex. motor oils. Taking our particular industry as a whole, we do not Yours very truly, feel that the tax should be so apportioned that it is unfair to that M. G. CHENEY, particular industry compared with taxation on all others. In fact, By V. E. STEPP. when you consider the State tax as well as the Federal tax, and the cc-A. R. Forster, Coleman, Tex.; F. M. Sullivan, Coleman, Tex.: cost price of the product, it would, in our estimation, seem to be Sherwood Owen, Brownwood, Tex.; H. G. Agnew & Sons, Ballinger, a case of confiscation. Tex.; Centennial Oil & Gas Co., Goldsboro, Tex.; Roth & Faurot, We do not know how you feel regarding this subject, but are Coleman, Tex.; I. E. Ransom, Coleman, Tex.; H. Minister, Cole passing on our views in the event that there is a possibility of this man, Tex. 1-cent Federal tax being eliminated. We trust that you will act favorably for the oil industry in this respect. [From Sphere, February 1934} Very truly yours, CODES MAKE A SHAMBLES OF SMALL BUSINESS--ANTITRUST LAWS MUST PENN SERVICE On. Co., BE RESTORED, SAYS SENATOR BORAH, OR INDEPENDENT BUSINESSES WILL STRATMEYER. _ J._ BE DESTROYED--LITTLE BUSINESS SHOULD HAVE ITS OWN SPECIAL ANTITRUST LAWS AND INDEPENDENT BUSINESSES CODES By Senator WILLIAM E. BORAH Mr. BORAH. Mr. President, as in legislative session, I Not much is being said about it, probably not much will be ask permission to have inserted in the RECORD and to lie on said, but a real tragedy ls being played out today in American the table a telegram from the independent movie associa business life, a tragedy which involves anxiety and great suffer tng, mental and physical, and, in many instances, the sacrifice of tion; also a photostatic cop'y of a letter from the major pride, place in· the community, and at last, turning the key in the oil companies touching the interests of the small inde door, failure in business, failure in life. The tragedy is that of pendent oil companies; and also an article from Sphere small business fighting for existence and, in many instances, fighting in vain. under date of February 1934, all touching the subject which Last October in a public address I called attention to the fact I was discussing several days ago concerning the antitrust that these business codes were written for big business or written laws and their effect upon small business. in conformity with the interests of big business. It was almost necessary that they be made to conform to the interests of There being no objection, the matter was ordered to lie big business. That by reason of that fact, small business, inde on the table and to be printed in the RECORD, as follows: pendent business, was becoming greatly distressed, and that, in NEW YORK, N.Y., January 25, 1934. my opinion, unless there was a change in the program, small business would be crushed out, destroyed. Some publicity was Hon. WILLIAM E. BORAH, given to these remarks. United States Senate: Since that time I have received over 9,000 letters or messages National Board of Directors, Allied States Association of Motion from small business, independent business, confirming more than Picture Exhibitors, meeting at Warwick Hotel, direct that your I had indicated. These men are not chiselers; they are not de attention be invited to a device resorted to by code authority for sirous of impeding a just and sound plan for recovery. They are motion-picture industry to defeat remedial measures not involving among the best citizens of our country, asking no more than a change in law. That body dominated by major producers re chance to play the game under rules fair to small business as well quires that independents fill unqualified assets to code as condi as to big business. tion of participating in any degree therein, thereby waiving all It is no attack upon big business to say that, after all, "small right and approving in advance everything this code authority business" constitutes the real strength of our economic struc may do. We have filed suit to test their right to do this and ture. It needs no argument to convince any reflecting person that are advised defense of proceeding will be handled by N.R.A., thus its ruin would be an irreparable loss to the Nation. It needs no making it appear we are opposing the Government. Major pro argument to prove that the small business man cannot carry on ducers are violating code provisions against forcing short subjects under codes made to conform to the interests of big business. with feature pictures and protecting themselves by stamping on One of the great items in the situation arises out of the fact contract that the exhibitor has agreed to purchase excess number that the antitrust laws 11ave been suspended. There is little and requiring exhibitor to initial the clause. This is cited to show practical restraint upon the rapacious appetites of some big how large units being in absolute power can and do exact agree businesses. Not all. For bigness itself noes not necessarily denote ments and waivers which will preclude independents from con greed or meanness of purpose. But it was a sad mistake to lift testing monopolistic practices before boards. We greatly deplore all restraint from big buslness by suspending the laws against that efforts to enlist interest of General Counsel Richberg elicited trusts. only condescending and evasive letter from a subordinate attorney. It is true that there is in the National Recovery Act-a general By direction of the board. statement prohibiting monopoly and monopolistic practices. But ABRAM F. MYERS, Chairman. in practical effect this seems to be a dead letter. It furnishes no protection to small business. COLEMAN, TEX., January 18, 1934. Trusts and combines and conspiracies and restraint of trade pre vail, not only without restraint, but rather under the shelter of To whom it may concern: the Government. The result is that the small business man must The writer is a member of the new pool committee in Texas not only do business under codes framed to meet the require under the code of fair competition for the petroleum industry, ments and in accordance with the necessities of large business, and respectfully calls your attention to the necessity of filing a but he is compelled to contend against those practices of great report by January 31, 1934, showing agreed plan of development. combines which have been used from time immemorial to destroy This is necessary to the legal shipment of oil from any new pool. small business. The new pool is defi:ned as "any commercially productive accu Many letters which I have disclose price fixing, price cutting, mulation of crude petroleum (whether located in a field, area, or and all the practical methods heretofore employed but condemned horizon heretofore known as productive or otherwise) discovered by our courts and condemned by our laws. after January l, 1933, and/or in which 10 commercially producing It seems to me that the first step we should take in the interest wells had not been completed by September 13, 1933." of small business is to restore the antitrust · 1aws; tha.t provision The plan requires presentation of maps showing ownerships, of the National Recovery Act which suspended them should be present and proposed development and probable outlines of the repealed. They should remain in full force upon the statute pool, and must include several provisions which have received books. rather wide publication, such as in the Star Telegram issues of This will, in my opinion, not embarrass the administration of December 24, 1933, and January 14, 1934, and probably the va the National Recovery Act. It was supposed at the ti.me that rious oil journals have included this in recent -issues, including act was passed that the antitrust laws would embarrass the ad the Oil and Gas Journal issue of January 18, 1934, page 10. ministration of the National Recovery Act. But, in view of the The .chairman of the Texas new pool committee is Fred Sealey, decisions of the Supreme Court during the last 30 years, there is of the Texas Co., Houston, Tex., and other members are H. E. no reason to suppose that the fair administration o! the National Marsh, of the Amerada Petroleum Corporation, Fort Worth; T. E. Recovery Act would not come well within the decisions of the Swigert, Shell Petroleum Co., Houston, Tex. Six copies of the Supreme Court as to the meaning of the antitrust laws. report must be submitted and signatures-must be sworn to before The Industrial Recovery Act has for its object the establish a notary public. No set form has_been proposed, and it is appar ment of fair competition, and the Supreme Court has said that ently up to the owners of each new pool to adopt some definite the Sherman Antitrust' Act was "not intended to fetter free and plan in keeping with conservation and stab\lity- of the industry. fair competition as was commonly understood and practiced by Two of these copies must be filed with the Petroleum Administra honorable opponents in trade." tive Board, ·Department of the Interior, Washington, D.C. (atten No one need fear the Sherman Antitrust Laws or the Clayton tion of Mr. J. W. Steele), by January 31, 1934, with single copies Act who desires to carry on a business upon a fair and honorable Jo the following:- basis or upon a basis of fair competition. 1934 CONGRESSIONAL RECORD-. SENATE 1653 · Secondly, it seems to me that some way must be devised to Mr. ROBINSON of Arkansas. Mr. President, the Senator have different codes for small, indep~ndent business institutions and great combines, as it were, as a different condition has to be from Louisiana, while I was absent from the Chamber today, met, and different rules must necessarily prevail. called up Senate Resolution 158. Objection was made to its It has been said to me, and it has been said elsewhere, that immediate consideration, as I am informed. the period of the small business is passing. This brutal doctrine Mr. LONG. That is correct. is born of greed upon one hand and of the communistic theory Mr. ROBINSON of Arkansas. And I understand the Sen upon the other. It is in the interest of the whole country, in the interest of sound economics, and in the interest of the perpe ator from LOuisiana wishes to call up the resolution now. tuity of the institutions under which we live to protect the small Mr. LONG. Yes; I do. business interests of the country. Mr. ROBINSON of Arkansas. I have no objection to the NATIONAL INCOME, 1929-32 (S.DOC. NO. 124) Senator doing so, with the understanding that I shall make As in legislative session, a motion to refer the resolution to a committee. Mr. LA FOLLETTE. Mr. President, in June 1932, I sub Mr. LONG. I call up Senate Resolution 158, if there is no mitted a resolution, which was adopted by the Senate, being objection. Senate Resolution 220, which called upon the Secretary of There being no objection, the Vice President laid before Commerce- the Senate the resolution (S.Res. 158) submitted by Mr. LONG on the 30th instant, providing for an investigation of To report to the Senate of the United States on or before December 15, 1933, estimates of the total national income of the the activities of citizens of Louisiana adverse to HUEY P. United States for each of the calendar years 1929, 1930, and 1931, LoNG, United States Senator from Louisiana. including estimates of the portions of the national income origi Mr. ROBINSON of Arkansas. I move that the resolution nating from agriculture, manufacturing, min.ing, transportation, be referred. to the Committee to Audit and Control the and other gainful industries and occupations, and estimates of the distribution of the national income in the form of wages, Contingent Expenses of the Senate. rents, royalties, dividends, profits, and other types of payments. Mr. LONG. Mr. President, I am not going to object to These estimates shall be prepared by the Bureau of Foreign and that motion, because .I hope I will be able to get an early Domestic Commerce, and the Bureau shall use available official and unofficial statistics and such relevant data as may be in the report from that committee. possessions of the various departments, bureaus, and independent The VICE PRESIDENT. The question is on the motion establishments of the Federal Government. of the Senator from Arkansas that the resolution be referred Mr. President, the Department of Commerce has submit to the Committee to Audit and Control the Contingent ted its report under the terms of that resolution, and the Expenses of the Senate. report was referred to the Senate Committee on Finance. The motion was agreed to. At the last meeting of the committee I discussed the report EMPLOYMENT OF TEMPORARY CLERKS TO SENATORS with other members of the committee, and, after explaining As in legislative session, that it is a very valuable piece of statistical work and is the Mr. BONE. Mr; President, l send to the desk a resolution first official estimate of this character which we have had and ask una.nimous consent for its immediate consideration. for many years, I was instructed by the committee to request I ask to ·have the resolution read. unanimous consent that the report be printed as a Senate The VICE PRESIDENT. The resolution will be read. document. Therefore, now,- as in legislative session, I make The resolution CS.Res. 161) was read, as fallows: that request. I may say that the action of the committee Resolved, That each Senator is authorized to appoint one addi in making this recommendation was unanimous. tional clerk to serve until the expiration of the present session of The VICE PRESIDENT. · Is there objection? The Chair the Congres.5, and to be paid a salary at the rate of $1,800 per hears none, and it is so ordered. annum out of the .contingent fund of the Senate. . Mr. BONE. Mr. President, such comment as I desire to PROPOSED INVESTIGATION OF LOUISIANA PROPAGANDA make on this resolution will be very brief. As in legislative session, I assume that I suffer from the same disadvantages which Mr. LONG. Mr. President, I ask unanimous consent to seeni to be affecting all other Members of this body now. call up Senate Resolution 158. I cannot call it up without Every Senator to whom I have talked has told me the same unanimous consent, because there has been no new legis- story. It is physically impossible to answer the mail that is 1~ tive day since I submitted it. now coming in. Mr. PITTMAN . . Mr. President, I should like to have the I do not care to prolong the discussion. The resolution resolution read first, to understand what it is. merely provides that each Member of this body shall have Mr. LONG. It merely provides for an investigation. the aid of. an extra clerk during the remainder of this Mr. PITTMAN. Will it require debate? · session, which may go on for 60 days or possibly longer. Mr. BARKLEY. Does it require any ~ppropriation or.any It does not provide for any permanent extra aid. expenditure? I am not sure whether the resolution should be referred to Mr. LONG. No; it does not require any at all. a committee or not. If not, I ask for its immediate con Mr. BARKLEY. Let the resolution be passed over until sideration. some of us can look into it. It may be that the resolution The VICE PRESIDENT. Necessarily the resolution must ought to go to the Committee· to Audit and Control the be referred to the Committee to Audit and Control the Con Contingent Expenses of the Senate. tingent Expenses of the Senate. Mr. LONG. No; it does not have to go there. It might Mr. BONE. That is perfectly all right, if it has to be so have to· go to the House of Morgan, but it does not have to referred under _the rule. go to the Committee to Audit and Control the Contingent The VICE PRESIDENT.- The resolution .will be so referred. Expenses of the Senate. The only question is as to whether HEARINGS BEFORE COMMITTEE ON CLAIMS or not we will investigate the expenditure of money in this As in legislative session, city to set up headquarters, to run a publicity bureau, and Mr. BAILEY. Mr. President, I submit a resolution which do other things financed by private interests for the pur I ask to have read and adopted. It is a resolution· from the pose of protecting certain private interests against a Member Claims Committee authorizing that committee to hold hear of the United States Senate. That is ·all there is to the ings, and providing for the payment of· stenographic ex resolution. pense. . It is the ordinary resolution which is passed from Mr. BARKLEY. Let it go over for the present. I shoulcl year to year, and we need it. It ought to be adopted today, like to look into it. for the reason that we have some hearings set for tomorrow . . Mr. LONG. Very well. There beirig no objection, the re~olution (S.Res. 162) was ' Mr. LONG subsequently· said: Mr. President, I have been read, as follows: talking with the Senator from Arkansas [Mr. ROBINSON], Resolved, That the Committee on Claims or any subcommittee and I desire to ask leave to bring up Senate Resolution 158. thereof be, and hereby is, authorized during the Seventy-third LXXVIII--105 1654 CONGRESSIONAL RECORD-SENATE JANUARY 31 Congress to send for persons, books, and papers, to administer building because they are local and therefore cost less. The em oaths, and to employ a stenographer, at a cost not exceeding 25 phasis, both outside and in, is on simplicity, so that all the cents per hundred words, to report such hearings as may be had 1n money available can be spent on things that will give value, use, connection with any subject which may be before said committee, and comfort to the occupants. The houses will have no cornices, the expenses thereof to be pa.id out of the contingent fund of moldings, or other ornaments. They will be heated by electricity. the Senate; and that the committee, or any subcommittee thereof, This will be possible through the cheap power the T.V .A. will pro may sit during sessions or recesses of the Senate. duce at Norris Dam. An electric range, a refrigerator, a water heater, and numerous other electrical appliances will be furnished. The VICE PRESIDENT. Under the rule, the resolution Steel casements which will extend to within 4 inches of the will be referred to the Committee to Audit and Control the ceiling will be used for windows to improve ventilation. Every Contingent Expenses of the Senate. house will have a large screened porch costing almost as much as a room but almost as useful in this climate. Mr. BYRNES, subsequently, from the Committee to Audit Showers will take the place of bathtubs because they require and Control the Contingent Expenses of the Senate, to less space and ·are more efficient. Wall board will be used instead which Senate Resolution 162 was referred, reported it with of plaster because it is cheaper and can be applied without skilled labor. Skilled labor will be used by the T.V .A. • but the hope is ta out amendment. make the type of construction at Norris so easy that a neighboring Mr. BAILEY. Mr. President, I wish to call up Senate farmer who wants to build himself a similar house will be able Resolution 162, which has been favorably reported by the to do so. It is for the same reason that the T.V.A. is experiment Committee to Audit and Control the Contingent Expenses of ing with a fireproof type of construction that would be simpler to build than brick veneer. Every house will have an electric the Senate. The resolution merely authorizes hearings by humidification system to reduce the heat bill, for properly humidi the Committee on Claims, and allows a stenographer to be fied air is comfortable at a lower temperature than dry air. employed. I desire its adoption at this time in order that There will be no building line in the town of Norris. Further, the houses will be staggered unevenly. No window of any house the committee may have a hearing tomorrow. It is the will comm.and an unbroken view of its neighbor's kitchen. The usual form of resolution. details of location for each house will be determined entirely There being no objection, the above resolution CS.Res. by the topography of its lot. Each lot will be slightly irregular 162), submitted today by Mr. BAILEY, was considered and and slightly different in size from the others. The T.V.A. town planners will see to it that there are not in Norris the wretched agreed to. views almost inseparable from the subdivision type of d·evelop THE TOWN OF NORRIS, TENN. ment. The rear of a house will be as attractive as the front. I In the center of the town there will be a large comm.on to Mr. CUTTING. Mr. President, ask permission to have serve as a park and open-air meeting place. A recreation field printed in the RECORD an article appearing in the New Re will be laid out next to the school. At one end of the common public for January 31, 1934, entitled " The T.V .A. Builds a will be the town center, which will include an administration Town", having relation to the town of Norris, Tenn. building, a hotel, a restaurant, a drug store, a barber shop and beauty parlor, a general store, and a post office. All these will be There being no objection, the articl'e was ordered to be built and owned by the T.V.A. It has not yet been decided printed in the RECORD, as follows: whether the T.V.A. will operate them itself or lease them, but in {From the New Republic, Jan. 31, 1934] any event it will not sell them. The Authority will not only build its school, but will operate it as well. Dr. Floyd W. Reeves, THE T.V.A. BUILDS A TOWN T.V.A. personnel director, formerly of the University of Chicago, The town of Norris, Tenn., will be more than a memorial to the will be the director. The school will offer grammar, junior-high, great liberal Senator for whom it is named; it will be the first and high-school courses. example in the United States of what genuine, coordinated plan On the outskirts of the town there will be a well-designed tourist ning can accomplish. It will be a town in which human intelli camp, a filling station, and a garage, while surrounding the town gence and human technical skill will turn the natural advantages will be a protective belt of park to prevent the encroachment o! to uses that will enable men and women to build a living, func undesirable developments. Residents of Norris will also have the tioning, possibly beautiful community, ratl".ier than a realtor's use of a large administration building equipped with an audi dream of subdivisions or a landlord's dream of rack-rent. torium, game rooms, movie hall, library, canteen, and lounge. Four miles away through the Cumberland foothills is the Norris The cost of street improvements, water and sewer systems, grad Dam, one of the major power units of the Tennessee Valley ing, landscaping, storm-water drainage, street lighting, public Authority, and at Norris will be built a new, complete town for buildings, and cost of planning and overhead expenses, together those whose work ·makes it desirable for them to live near the with interest on investment in construction, will not be ·added to dam. The sole landlord, the sole planner, the sole builder will the cost of the houses. And there is a sound economic reason for be the T.V.A. itself. Nor will time, congestion, and economic this: If the town had not been built i"'.i would have been neces shifts, the three great destroyers of the model town, be able to sary to erect several more dormitories at the construction camp strike at Norris. There is no land for sale. Indefinitely the and several individual houses for foremen and engineers. For T.V.A. will be the sole planner, landlord, and builder. Tl1e land practically the cost of such temporary buildings the T.V .A. is ab~e and buildings a.t Norris will be for rent only, and they will be to give its town a permanent start in life. for rent only to those who will use them--employees whose work Mr. Wank and his aids do not like the term "model town." leads them to live in Norris. So there will be no artificially en They refuse to apply it to Norris. "We cannot make revolution couraged congestion "down town" while the blight of abandon ary improvements any more than we can pull rabbits out of a ment and decay settles over an outlying section. There will be hat", Mr. Wank said. "Until mass production puts materials of no arbitrary, eternal lot lines to block new streets or prevent the the twentieth century-steel, concrete, aluminum, glass, cork, rub assemblage of large plots for future public buildings or industrial ber, resin compositions, etc.--closer within our reach, we are con needs. The T.V.A. is aware that a town is a living thing; it fined to much the same materials as our forefathers used, and cannot be planned into a state of eternal perfection and left they have already made a pretty thorough job of exploring all to stand unaltered and unalterable. It lives; time changes its the possibilities of lumber, brick, stone, and mortar." needs, its problems; only unending planning can keep it what its But though technical necessity limits the distance that the makers intend it to be. T .V .A. can go toward changing our whole accepted methods of In the meantime, how is the town to be started? What is it town and house building, the steps taken at Norris are definitely to look like? With what sort of lots and houses does the T.V .A. in the right direction. They could hardly be otherwise. After plan to start its child off into life? all, as Mr. Wank remarked, "Private enterprise has made a sorry Streets have already been graded, lots staked off, and plans mess of housing." drawn for the first unit of 250 houses. Construction of the first JOHN T. MOUTOUX. block, 50 houses, will start at once, and the entire unit should be completed .by the middle of June or the first of July. It has GREAT LAKES-ST. LAWRENCE DEEP WATERWAY TREATY not been decided how many more units will follow, but engineers The Senate, as in Committee of the Whole, resumed the estimate a maximum population of 5,000 to 6,000, requiring approximately tour units. consideration of the treaty between the United States and The standard home will average four rooms, a bath, a laundry, the Dominion of Canada for the completion of the Great and a large screened porch in the rear. Materials and labor costs Lakes-St. Lawrence Deep Waterway, signed July 18, 1932. will range from $2,100 to $5,000 per building. The rental for a Mr. LA FOLLETTE obtained the floor. 3-room house with all conveniences, including an electric heating unit, will be less than $20 a month. Larger hquses will rent for as Mr. ROBINSON of Arkansas. Mr. President- high as $45. Each house will be entitled to a 4-acre farm plot at The VICE PRESIDENT. Does the Senator from Wis no additional cost. Some of the residents will have individual consin yield to the Senator from Arkansas? farms; others will pool their land and till it on a cooperative basis. The designing of the houses is in charge of Roland A. Wank, Mr. LA FOLLETTE. I yield. New York architect, who in 1930 won the gold medal of the Mr. ROBINSON of Arkansas. I suggest the absence of a American Institute of Architects for his design for the Grand quorum. Street apartments in New York City for the Amalgamated Cloth ing Workers. Mr. Wank has decided to use no standardized, spe Mr. LA FOLLETTE. I yield for that purpose. cial style of architecture. Traditional materials are being used !or The VICE PRESIDENT. The clerk will call the roll. 1934 CONGRESSIONAL RECORD-SENATE 1655 The legislative clerk called the roll, and the fallowing Mr. LEWIS. Mr. President-- Senators answered to their names: The VICE PRESIDENT. Does the Senator from Wiscon Adams Couzens Johnson Robinson, Ark. sin yield to the Senator from Illinois? Ashurst Cutting Keyes Robinson, Ind. Mr. LA FOLLETTE. I yield. Austin Davis King Russell Bachman Dickinson La Follette Schall Mr. LEWIS. I again call the attention of my eminent Balley Dieterich Lewis Sheppard friend from Michigan to the fact that what he has read Bankhead Dill Logan Shipstead has vindicated the statement made by me to the Senate. Barbour Duffy Lonergan Steiwer Barkley Erickson Long Stephens It is that the President had not authority and could not Black Fess McAdoo Thomas, Utah have had authority as the nominee upon the Democratic Bone Fletcher McCarran Thompson Borah Frazier McGill Townsend platform to have advocated the treaty which is now under Brown George McKellar Trammell discussion. It is evident that the President's remarks had Bulkley Gibson McNary Tydings to do with waterways and made reference to the st. Law Bulow Goldsborough Murphy Vandenberg Byrnes Gore Neely VanNuys rence. I am perfectly willing to agree that Canada shall Capper Hale Non·ts Wagner build her St. Lawrence waterway whenever she pleases; that Caraway Harrison O'Mahoney Walcott Carey Hastings Overton Walsh the St. Lawrence waterway may be built whenever she Connally Hatch Patterson Wheeler chooses; but there is not a word in the President's speech Coolidge Hatfield Pittman White which advocates this treaty between the United States and Copeland Hayden Pope Costigan Hebert Reynolds Canada for a St. Lawrence waterway; nor is there a word in the Democratic national platform-and may I be par Mr. LEWIS. I desire to announce that the Senator from doned for saying I had a little something to do with that Oklahoma [Mr. THOMAS] and the Senator from Virginia document; pardon me; I withdraw that-with reference to [Mr. GLAssJ are detained at home by illness. I desire also the pending treaty, but the platform advocates only to announce that the Senator from Virginia [Mr. BYRD] is "waterways." detained by official engagements and the SenMor from Mis souri [Mr. CLARK] and the Senator from South Carolina My friend is right in assuming that the words "St. Law [Mr. SMITH] are detained upon official business out of the rence waterway" were used by the President, but I call his city. attention again to the fact that I have insisted all the time that the President had at no time in that speech advocated Mr. HEBERT. I desire to announce that my coIIeague, the support of the treaty or referred to the treaty in con the senior Senator from Rhode Island [Mr. METCALF], the nection with the St. Lawrence waterway. Senator from New Jersey [Mr. KEAN], the Senator from South Dakota [Mr. NORBECK], the Senator from North Da Mr. VANDENBERG. Mr. President-- kota [Mr. NYE], and the Senator from Pennsylvania [Mr. The VICE PRESIDENT. Does the Senator from Wiscon REED] are necessarily absent from the Senate. sin yield to the Senator from Michigan? The VICE PRESIDENT. Eighty-six Senators have an Mr. LA FOLLETTE. I yield. swered to their names. A quorum is present. Mr. VANDENBERG. I do not intend to discuss with the Senator what happened to the St. Lawrence waterway plank Mr. VANDENBERG. Mr. President-- in the Democratic National Convention. I freely concede The VICE PRESIDENT. Does the Senator from Wiscon that it is shrouded in great mystery. sin yield to the Senator from Michigan? Mr. LA FOLLETTE. I yield. Mr. LEWIS. We regret that the Senator from Michigan was not present in order that he might have given us inf or Mr. VANDENBERG. Mr. President, when the debate was concluding yesterday afternoon in the time of the Senator ma tion. from Wisconsin, a difference of opinion arose on the floor Mr. VANDENBERG. At least if the Senator from Michi of the Senate respecting the correct quotation of President gan had he would have undertaken to make it plain what Roosevelt in his Albany address in July 1932 opening the the situation was. Democratic campaign. I quote from the stenographic notes Mr. LONG. We did. of yesterday's late proceedings: Mr. VANDENBERG. The Senator from Louisiana indi Mr. VANDENBERG. In the address which the Democratic nominee cates that they did. If the Senator from Wisconsin will made to the country over the radio he undertook to read and bear with me, I shall proceed just a step farther into the paraphrase the Democratic national platform. • • • The historical facts to which my friends are alluding to demon Democratic nominee, in reading the program and platform to the country, included the precise St. Lawrence plank to which strate otherwise. the Senator from Wisconsin is referring. It appears that on the evening of July 30, 1932, the Sena • • • • • • tor from Iowa [Mr. DICKINSON] made an address over the Mr. LEWIS. I want to say that my able friend from Michigan has radio from Chicago in behalf of the Republican National fallen into an error, unconsciously, of course. The speech of the Committee in which he took the Democratic Convention to President did not say "the St. Lawrence waterway" but "water ways", and I call attention to the fact that the Democratic plat task for not having specified in its platform its attitude re form did not allude to the " St. Lawrence waterway", and thus it specting the St. Lawrence project. The pending treaty had could not have authorized him in his speech to construe that been signed 2 weeks previous. The Senator from Iowa called platform to endorse other than what it said-" waterways." attention to the fact that the printed platform as released • • • in Washington did not include the reference to the St. Law :Mr. VANDENBERG. I shall be very glad to put the President's pre rence seaway. The Senator from Illinois is entirely correct cise words in the RECORD tomorrow. in that respect. I have never disputed it. Hence, the mys I rise, Mr. President, to complete that promise, and at this tery to which I referred. moment I read from the New York Times of July 31, 1932, That evening-the same evening-the Democratic Presi under the heading " Full Text of Speech of Governor Roose dential nominee made his Albany address and the only con velt Delivered from Albany, N.Y., July 30, 1932 ": troversy between the Senator from Illinois and myself on We advocate extension of Faderal credit to the States to provide yesterday afternoon was solely the question whether or not unemployment relief where the diminishing resources of the Governor Roosevelt in that speech identified the St. Law State!? make it impossible for them to provide for the needy; expansion of the Federal program of necessary and useful con rence seaway as a part of the platform and as a Democratic struction affected with a public interest, such as flood control and pledge. I am submitting this morning the textual fact that waterways, including the St. Lawrence-Great Lakes deep water he did undertake to read the St. Lawrence identification into way. his platform. I submit that the facts thus vindicate my statements upon Immediately after the delivery of that speech and as yesterday. The President specifically identified the St. further demonstration of the historical truth of the thing I Lawrence-Great Lakes deep waterway. am discussing, the Senator from Iowa [Mr. DICKINSON] sent 1656 CONGRESSIONAL RECORD-SENATE JANUARY 31 a telegram to the Democratic nominee under date of July 31 States to· mention particularly the Great Lakes-St. Lawrence in which he said: waterway because, as I said, from the beginning of our In your radio address last night while reading what you in Government we have bad treaty after treaty recognizing formed your national audience to be the Democratic platform you that system of water as a waterway of the United States made use of the phrase "including the St. Lawrence-Great Lakes in common with Great Britain. There was no necessity deep waterways "- whatever for mentioning it. The President mentioned it That is the only present contention I have been making very probably because, as a legislator in the Legislature in in what you called the Democratic unemployment plank. the State of New York many years ago, be bad taken an in I am constrained to believe that in so doing you have, know terest in that waterway, and because President Wilson initi ingly or otherwise, committed an amazing deceit upon the Ameri ated steps for the purpose of making it economically can people. It is unfortunate that you should begin your campaign for the Presidency so inauspiciously. available to us to the highest capacity. It was recognized then; it was recognized again under President Harding; it In other words, the Senator from Iowa was indicating at was recognized under President Coolidge; and it was recog that time that there was an amazing difference of opinion nized under President Hoover as one of our waterways. In respecting what the Democratic national platform had to fact, it bas ·been recognized as one of the waterways of the say upon this proposition. The only thing I am submitting United states upon which to transport commerce just as to the Senate, the only thing which was involved in my con long as the Mississippi River has been so recognized. troversy with my able friend from Illinois on yesterday It seems to me that this effort to show that there was not afternoon, was that Governor Roosevelt did say in his speech some specific mention in the platform of one waterway is of July 30 that the Democratic commitment was to "flood entirely beside the question and is an attempted argument control and waterways, including the St. Lawrence-Great that has no weight. Lakes deep waterway.'' [Mr. LA FOLLETTE resumed and concluded the speech begun The whole controversy is of no serious moment, because by him on yesterday. His speech entire is as follows: J the present attitude of the President .of the United States • Tuesday, January 30, 1934 makes it utterly clear what has been and is in his mind in respect to this great undertaking, as further evidenced by Mr. LA FOLLETTE. Mr. President, I had intended to the fact that in bis message submitting the St. Lawrence address the Senate on the subject of the Great Lakes-St. Treaty he said: Lawrence Treaty this morning when it met, but, in view of the fact that the Senator from Louisiana [Mr. LONG] rose I request the consideration o! ratification by the Senate of the so-called "St. Lawrence Treaty with Canada." Broad national to a question of personal privilege, of course, it was necessary reasons lead me, without hesitation, to advocate the treaty. for me to yield to him. Mr. President, the completion of the Great Lakes-St. Mr. LEWIS. I will conclude, with the usual generosity of Lawrence project, provided by the treaty, will permanently the Senator from Wisconsin, by commenting on the fact benefit the producers and consumers of every section of the that the Senator from Michigan says bis observation upon United States. It will inevitably stimulate and increase our the subject is of no moment. I deny that anything the domestic commerce in the home market, comprising 80 per Senator from Michigan should say is of no moment, but I cent of all our water-borne tonnage. It will thus directly call attention that the particular thing in the moment is contribute to the shipping and trade of every existing Amer that in the whole moment occupied no word of the treaty ican seaport on the Atlantic, Gulf, and Pacific coasts. between this country and Canada was mentioned by the I propose, therefore, to discuss the pending treaty in President. terms of its effect not upon any single State or section but Mr. PITTMAN. Mr. President, if the Senator from Wis upon the United States as a whole. consin will yield further-- President Roosevelt has expressed the correct principle Mr. LA FOLLE'ITE. I yield to the Senator from Nevada. upon which this and every other project should be tested Mr. PITTMAN. I dislike to take any more time on the in a message which bas inspired confidence and support question of the platform, but I wish to say that no mention among the people, not only in the Great Lakes region but was made in the platform of the Mississippi River as a part throughout the Union. of our inland waterway project, nor of the Missouri River, In his message the President said: nor of the Ohio River, and yet I doubt if any Senator or any Broad national reasons lead me, without hesitation, to advocate citizen of the United States who bas ever studied the ques the treaty. There are two main considerations, navigation and tion doubts that when we refer to the development of water power. ways we have in mind those rivers. The President completely disposes of the misrepresenta It is general knowledge without mentioning it specifically. tions and false arguments which have been advanced in the It is equally general knowledge that from the beginning of discussion of this project. He appeals from fear to a confi our Government-yes; even before the existence of our Gov dence based on authenticated facts. He subordinates local ernment-the Great Lakes and the St. Lawrence River were sectional greed to the general welfare · and the interest of recognized as a part of the water tra~sportation of the terri the whole Nation. tory at that time embraced within the British possessions The President continues in his message: and colonies and now under the sovereignty of the United I am sending you herewith a summary of data prepared at my States. request by governmental agencies. This summary, in its relation to the economic aspects of the seaway, shows from the broad na Following it down from that time until the present time tional point of view, first, that commerce and transportation will the Great Lakes and the St. Lawrence River have been be greatly benefited and, secondly, local fears of economic harm recognized as one of the water transportation systems of the to special localities or to special interests are grossly exaggerated. It is, I believe, a historic fact that every great improvement direct United States. Part of these Lakes are our exclusive prop ed to better commercial communications, whether in the case of erty. Other parts of the Lakes are held in common, we railroads into new territory, or the deepening of great rivers, or the might say, between Canada and the United States. Part building of canals, or even the cutting of the Isthmus of Panama, of the St. Lawrence River is a boundary and sovereignty is have all been subjected to opposition on the part of local inter ests which conjure up imaginary fears and fail to realize that divided and held in common. But even as to that part of improved transportation results in increased commerce benefiting the river exclusively within the sovereignty of Great Britain directly or indirectly all sections. and Canada, since the very beginning of our Government For example, I am convinced that the building or the St. Lawrence seaway will not injure the railroads or throw their all treaties have recognized that the whole system is an employees out of work; that it will not in any way interfere with essential waterway to both countries and it has been made the proper use of the Mississippi River or the Missouri River for free to both of them from the beginning. navigation. It was not necessary in the platform to mention any one The President continues: of the particular waterways. The platform did not do it. I am satisfied that the treaty contains adequate provision for It was not even essential for the President of the United the needs of the Chicago drainage district and for navigation 1934 CONGRESSIONAL RECORD-SENATE 1657 between Lake Michigan and the Mississippi River. A special report utility and railroad lobbyists in preference to official figures from the Chief of Engineers of the War Department covers this from such agencies as the Corps of Engineers and the Fed subject. eral Power Commission, authenticated by the President of Concluding his message, the President states: the United States. I have not stressed the fact that the starting of this great work At the last session of the Senate, the Senator from Louisi wm put thousands of unemployed to work. I have preferred to ant [Mr. LONG] and the Senator from New York [Mr. COPE stress the great future advantages to our country and especially the fact that all of us should view this treaty in the light of the LAND] led the filibuster which prevented consideration of the benefits which it confers on the people of the United States as treaty. They insisted over and over again that no adequate a whole. economic study had been made to determine the effect of Every conclusion the President states in his message is the project upon our domestic commerce. buttressed by official data in the summary which accom The President has submitted the results of an exhaustive panies it. It is a document that does credit to the adminis investigation for discussion by the Senate, and it can no tration and brings immeasurably nearer to realization the longer be maintained that further study of this project is · greatest economic and engineering project undertaken on needed. this continent since the construction of the Panama Canal. OFFICIAL DATA NOW AVAILABLE When the existing obstacles to navigation on the connect The President sent his message urging the ratification of ing rivers and channels from the Great Lakes to the sea are the treaty and submitted the. official estimates of the Corps removed under the terms of the pending treaty and when of Engineers of the War Department covering every item of ocean-going vessels dock at the harbors of 30 American the cost of both the power and navigation projects covered cities on the Great Lakes, with 80 percent of their cargoes by the treaty. The President called upon the highest en originating at the ports of the Atlantic, Gulf, and Pacific gineering authority available under the Government to coasts, the resulting benefits to the whole Nation will be due obtain these estimates. He adopted them and sent them to in large part to the decisive action of President Roosevelt. the Senate for consideration in connection with the treaty. The treaty before us was signed at Washington on July 18, Not one Senator opposed to the treaty has pointed to an 1932, nearly 18 months ago. The Committee on Foreign error in the estimates. Not one figure submitted by the Relations conducted an exhaustive investigation which con President in his summary of the official report has been chal tinued from November 1932 until February 1933. lenged. The whole effort, in fact, has been to disregard these Every phase of the project was carefully considered. estimates, official in character, as though they had never Representatives of public utilities, railroads, and other in been made; to drag in other figures and estimates made terested parties were heard. The economic advantages to years before the project was agreed upon and the treaty was the whole Nation and the feasibility of the engineering plans signed, drawn from unofficial and private sources. The evi embodied in the treaty were thoroughly established by the dent purpose of this effort is to avoid the real issue of cost testimony of scores of disinterest~d witnesses. presented by the President of the United States and to Sixty-nine witnesses were heard orally, and written state confuse Senators who approach the question with an open ments and briefs were filed by numerous individuals and mind. organizations, a great majority of the whole number being Senators continue to quote the estimates of Col. Hugh favorable to the immediate completion of the project. No Cooper made 14 years ago for a plan of development of the adverse witness was denied a hearing. No line of inquiry St. Lawrence River which had absolutely nothing to do with was proposed by any member of the Senate or of the the project provided by the pending treaty. Colonel Cooper committee which was not pursued to a conclusion. At the himself, in a telegram to the Senator from Michigan [Mr. end of the hearing, upon the motion of the late Senator VANDENBERG] specifically repudiated the use of his estimates Thomas J. Walsh, of Montana, the treaty was favorably as applied to the project under consideration in this debate. reported to the Senate by a vote of 9 to 2, with an accom Yet, in order to confuse the minds of Senators, the oppo panying report from the Senator from Idaho [Mr. BORAH], nents of this treaty persist, in the teeth of Colonel Cooper's the chairman of the committee. repudiation, to use those figures. The opponents of the treaty ask us to consider the figures VICIOUS PROPAGANDA AGAINST THE TREATY in a book published 5 or 6 years ago by Dr. Moulton, an From the time this treaty was under negotiation, when it economist without shipping, engineering, or power experi became evident that the United States and Canada might ence of any kind. The figures used in that book have abso reach an equitable agreement after years of study and co lutely nothing to do with the project specifically provided operation, the project became the subject of an attack which by this treaty. has continued unabated for the last 2 years. So far as the development of St. Lawrence power is con A vicious propaganda directed by special interests has cerned, Dr. Moulton frankly states in his book that he has been circulated against the treaty from the day it was sub relied upon figures furnished him by Sanderson & Porter, mitted to the Senate. Estimates of costs and maintenance an engineering firm which for years has been one of the have been padded. Statistics have been twisted and dis chief consultants under retainer by the private power and torted. The simplest facts of geography pertaining to this public-utility companies of the East. project have been falsified in order to obstruct the comple Dr. Moulton's book was written and published years be tion of the project and to intimidate the President and the fore the pending treaty was drawn up and signed at Wash Senate from carrying out the pledge for ratification of the ington by representatives of Canada and the United States. treaty made by the candidates of both major political parties Yet Senators are asked to consider figures that have their in the last campaign. origin in such sources and to disregard official estimates of I have examined the pamphlets most widely circulated in the Corps of Engineers, an official agency which has served this campaign of propaganda and find that they contain this Government in war and peace and served it faithfully scores of direct misstatements of fact, every one of them since the establishment of the United States Military Acad contradicted by the public record. Upon that false founda emy at West Point in 1802. tion were built up the "local fears of economic harm to I wish Senators to refer to page 424 of the current issue special localities or to special interests" to which the Presi of the Congressional Directory, which gives the official duties dent refers in his message as "grossly exaggerated." of the various agencies of the Federal Government. I Until the President sent h:s message to the Senate, with quote: accompanying data from the agencies of government con The Chief of Engineers is charged under the direction of the cerned with this project, we were asked to accept propaganda War Department with control in technical matters over all the as fact. · Corps of Engineers. The duties of the Corps of Engineers com This vast accumulation of misinformation and untruth has prise reconnoitering and surveying for military purposes; the preparation, reproduction, and distribution of military maps of now been thrown into the rubbish heap. The time has gone the United States and its possessions, and in field operations of by when the Senate of the United States can be asked to maps of the theater of operations; selection and acquisition of accept padded cost estimates and briefs prepared by public sites and preparation ot plans and estimates for military de- 1658 CONGRESSIONAL RECORD-SENATE JANUARY 31 fenses; construction and repair of fortifications and their ac cessories, including submarine mine systems; planning and super West Point, N.Y., in 1917, he was on duty as district engineer Vising defensive or offensive works of troops in the field; military at Memphis, Tenn. demolitions; military mining; and the construction, operation, His duty during the war as colonel of Engineers, National and maintenance of all railways, utilities, ferries, canal boats, or Army •. from August 5, 1917, was at Camp Dix, N.J., where he other means of inland water transportation. Civil duties committed to the Chief of Engineers, under the orgaruzed and commanded the Three hundred and third direction of the Secretary of War, are principally as follows: The Engineers. He took this regiment to France and remained execution of work ordered by Congress for the improvement of in command of it until relieved for assignment to General rivers and harbors and other navigable waters of the United Headquarters, A.E.F., as deputy director of light railways States; and investigation and supervision, in cooperation with the Federal Power Commission of power projects affecting navi and roads. He was afterward transferred to Coblenz Ger gable waters of the United States. many, as chief engineer, Army of Occupation, and he re The Board of Engineers for Rivers and Harbors is a permanent turned to the United States and went at once to Detroit body created by the River and Harbor Act of June 13, 1902. To it in are referred for consideration and recommendation all reports Mich., where early the summer of 1919 he had beer{ upon examinations and surveys provided for by Congress and all assigned as district engineer. projects or changes in projects for works of river and harbor im Since October 1929 he has been division engineer of the provements upon which report is desired by the Chief of Engi Great Lakes division with office at Cleveland, Ohio, having neers United States Army. In its investigations the Board gives consideration to all engineering, commercial, navigation, and supervision over the Buffalo, Detroit, second Chicago, Mil economic questions involved in determining the advisability of waukee, Duluth, and Lake Survey Districts. During this undertaking such improvements at the expense of the United period the following work on channels and harbors was States. commenced or provided for: Duluth-Superior Harbor, chan CORPS OF ENGINEERS RESPONSffiLE FOR RIVER AND HARBOR WORK nels in St. Marys River above and below the Soc Locks, the Mr. President, no river or harbor project has been under St. Lawrence between its head and Ogdensburg, Livingstone taken in this country in more than 30 years except on the Channel in Detroit River, the lower Saginaw River, channel basis of estimates made by the Board of Engineers for Rivers across Lake St. Clair, Toledo Harbor, Cleveland Harbor, and Harbors under the direction of the Chief of Engineers. Indiana Harbor, and Conneaut Harbor. If the estimates made by the Corps of Engineers are to At the same time, as a member of the Board of Engineers be disregarded when we come to deal with the Great Lakes for Rivers and Harbors since early in 1932, he has taken an and the St. Lawrence River, then the estimates from the active part in reviewing the major proposed improvements same source should be disregarded when we come to deal of rivers and harbors for navigation and flood control over with the improvement of New York harbor, the other ports the entire country. on the Atlantic, Gulf, and Pacific coasts, and the improve Since the war his assignments have been: District en ment of the Mississippi River system, and appropriations gineer, Detroit, Mich., July 15, 1919; district engineer, Lake for improvement upon other rivers in the country. Survey, July 12, 1921; commanding officer, Fort Humphreys, We cannot disregard such estimates and resort ;to the Va., June 4, 1925; and division engineer. Great Lakes divi twisted and partial figures of railroad and utility propa sion, Cleveland, Ohio, October 26, 1929. ganda, without checking the development of this country He was promoted to colonel, Corps of Engineers, May 11, and introducing chaos into the plans for improving the 1921. Important boards of which he has been a member navigable waters of the United States. are: Does any Senator here contend that the officers of the Board of Engineers for Rivers and Harbors. United States Army, who are at present at the head of St. Lawrence Waterway. the Corps of Engineers, have failed to bring to the consid Waterway from Chicago to the Mississippi River, Calumet eration of this project devotion to national interests. im River, Little Calumet River. Lake Calumet, and the Sag partial minds, and familiarity with the subject? Channel, Ill., July 29, 1930. The present Chief of Engineers of the United States Army The Joint Board of Engineers on St. Lawrence River is Maj. Gen. Edward Murphy Markham, appointed by Presi Waterway. Appointed June 6, 1932. dent Roosevelt October 17, 1933. General Markham has had International Board of Control to govern the mainte more experience ·in dealing with navigation, questions of nance and operation of the power-development works diversion and control, and development of power on the already built and authorized to be built in St. Marys River Great Lakes and their connecting rivers and channels than between Sault Ste. Marie, Mich., and Sault Ste. Marie, all the Members of the Senate combined. Ontario. A complete statement of the record of General Markham Board appointed to make preliminary examination of the is as· follows: Miami and Erie Canal, Ohio, including a branch canal con General Markham was born in Troy, N.Y., July 6, 1877. necting the Miami and ~rie Canal with Lake Michigan, with He was appointed a cadet to the Military Academy from a view to securing a channel. New York in June 1895, graduated fifth in a class of 72 in Board appointed to consider and report upon plans for February 1899, and was immediately appointed additional the construction of a county highway bridge across the Ohio second lieutenant in the Corps of Engineers, United States River at McKees Rocks, Allegheny County, Pa. Army. Board for the purpose of making a survey of Calumet His first duty as an engineer officer was as an assistant at River, Little Calumet River, Lake Calumet, and the Sag St. Augustine, Fla. Channel, ID., with a view to providing a connection with, He became second lieutenant, Corps of Engineers, Sep and terminal transfer harbors for, the waterway from Chi tember 29, 1899; was ordered to duty at the engineer school cago to the Mississippi River, authorized by the River and at Willets Point, N.Y.; and was appointed first lieutenant, Harbor Act approved July 3, 1930. Corps of Engineers, February 2, 1901, later being assigned to Educational Advisory Board. duty with Second Battalion of Engineers during the period Board of Surveys and Maps. at Willets Point and in the Philippine Islands. Returning General Pillsbury's record is as follows: to the United States, he was assigned as adjutant at Wash Pillsbury, George Biglow, Army engineer; born Lowell, ington Barracks, D.C., and as assistant to Captain Sewell, Mass., December 19, 1876; student Massachusetts Institute Corps of Engineers, in charge of the reconstruction of Wash of Technology, 1894-96; graduate, United States Military ington Barracks, D.C. He later commanded Company H, Academy, 1900; commissioned second lieutenant, Engineer Second Battalion of Engineers, at Washington Barracks and Corps, United States, June 13, 1900, and advanced through in Cuba. He was promoted to captain October 15, 1905. and, grades to lieutenant colonel, February 6, 1920; engineer, returning from Cuba, was assigned to duty in Washington, Alaska Railroad Commission, 1904-8; associate professor D.C., in August 1907, and remained in this city as assistant mathematics, United States Military Academy, 1908-12; engineer commissioner until August 1912. His promotion to district engineer, New London, Conn., district, 1912-16; Los major came February 27, 1912, and from the summer of 1912 Angeles, Calif., district, 1916-17; commander, One hundred until ordered to duty at the United States Military Academy, and :fifteenth Engineers, 1917-18; One hundrnd and second 1934 CONGRESSIONAL RECORD-SENATE 1659 Engineers, 1918; Corps Engineers, Second Corps, American tion to the fact that even with the limited export water Expedit.ionary Forces, 1918-19; member, Joint Board of Engi borne traffic, which is possible today from the city of Detroit neers, s t. Lawrence waterway, 1923-26; District engineer, through the 14-foot channel, last year 54 cargo ships cleared Philadelphia district, 1928-30; assistant to Chief of Engi from Detroit for foreign ports carrying meat products, corn neers, United States, with rank of brigadier general for sirup, corn meal, and soda products in England; coal-tar period of 4 years from June 27, 1930; awarded D.S.M. Northern Pacific Railway Co., May 15, this great domain of natural resources, as I have so often 1925: said, Mr. President, the largest single block of power on the • • • The northwestern railroads have always recognized the advantage of transportation via the Lakes in connection with North American continent. the eastbound movement of grain, lumber, copper, and other prod Mr. President, J. P. Morgan & Co., and their allied inter ucts of their territory. The necessary breaking of bulk at the e~ts are seeking to destroy this administration, and they are Lake port permits prompt release and return of cars to loading seeking to prevent the ratification of this treaty, not be points and to the extent the Lake route is utilized we have an independent railroad operation and thus escape the losses which cause they fear the effect of the completion of the seaway often attend the delayed return of cars by connecting railroads. but because they are determined to prevent a public power development on the St. Lawrence River, like that at Muscle F. W. Sargent, president Chicago & North Western Rail Shoals and Boulder Dam. road, September 17, 1925: These banking interests are behind the false propaganda • • • The Great Lakes-St. Lawrence waterway will help the Middle West. Anything that will help promote the prosperity of that conjures up war with Great Britain and Canada. They the inland empire lying between the Alleghenies and the Rockies are ready to sow seeds of discord between two friendly will help the railroads and wlll be of inestimable value to the neighboring nations, and their propaganda is almost exclu entire country. sively confined to navigation, but their real interest lies in October 27, 1926: blocking this public development of power. • • • A direct ocean route from this interior territory to Not one Senator in this debate has attacked the power trans-Atlantic markets would stimulate industrial and agricultural project under this treaty, and yet, as I am prepared to show, growth with resulting benefits to all classes of business, including it is the power interests of this country, dominated in the that of railroad transportation in the region thus benefited. East by J. P. Morgan & Co., which are the chief source of Ralph Budd, president Great Northern Railway Co., De opposition outside this Chamber; and they are fighting this cember 7, 1920: treaty because they well know that it is only if this treaty, The benefits accruing to the middle and northwestern sections containing the navigation provi~ions, is passed that their of the United States as a result of the Great Lakes-St. Lawrence right to private power claims which they have already en tidewater project cannot help being apparent to anyone who ha-s tered upon this area can be extinguished. given the subject consideration. Mr. President, as has already been pointed out previously The success with which lake-and-rail movement of ore and in this debate, down to the year 1931 the ablest railroad coal is carried on serves as a splendid illustration of what could be done in a larger way with the tidewater project carried out so executives of the United States were open and ardent advo that exporting could be carried on freely from this great middle cates of the development of a seaway connecting the Great and northwestern territory directly from the termini of the rall Lakes with the Atlantic. Down to that year, and for nearly lines which serve the territory. a generation preceding it, railroad management took the W. G. Bierd, Chicago & Alton Railroad Co., August 2, 1923: position President Roosevelt now takes, and repeatedly de With our own American roads west of the Great Lakes, of what clared that the creation of a new seacoast for the United we generally term the central western lines, there can be nothing States by the completion of this project would benefit the to lose and everything to gain. We of the central West would whole Nation, including the rail carriers. still have our eastern connections to handle all-rail commodities, but in ti.mes of congestion, or times of shortage of equipment, RAILROAD EXECUTIVES WERE FOR THE SEAWAY we would also have the waterway, which, of course, can only During the 10 years preceding 1931 the president of every mean a more profitable and prosperous condition. important western railroad at one time or another publicly But the completion of this deep waterway could only be ad endorsed the seaway project. vantageous to the central western roads, although I appreciate this is partly a selfish view, that we might prosper to the loss Howard Elliott, when chairman of the Northern Pacific or detriment of certain eastern lines. However, if I believed Railway, said before the Harvard Club, of New York City: this to be true, I would not advocate it; but in the end. I do 1672 CONGRESSIONAL RECORD-SENATE JANUARY 3l believe that the eastern roads wm not suffer by such a water I shall ask that question at a time when the Senator has route; in other words, I view this largely as does Sir Henry finished his address, without interrupting him at the pres Tliornton. sent moment, and if the Senator would be good enough to Mr. SHIPSTEAD. Mr. President-- indicate to me when it would be agreeable for him to answer The PRESIDING OFFICER. Does the Senator from I should then be glad to ask him the question. Wiscollsin yield to the Senator from Minnesota? Mr. LA FOLli:ETI'E. I will be very glad to do so. Mr. LA FOLLETTE. I yield. Mr. TYDINGS. Mr. President-- Mr. SHIPSTEAD. The Government of the United States The PRESIDING OFFICER. Does the Senator from Wis spends money for the development of its waterways, as do consin yield to the Senator from Maryland? France and Germany; and all those countries spend a great Mr. LA FOLLETTE. I yield. deal of money on canals and on canalizing their rivers, and Mr. TYDINGS. On the point to which. the Senator has keep them open for free competition with the government just addressed himself, that the railroads enjoyed a revenue owned railways, because as a national policy they feel it not which enabled them to pay out a billion dollars a year in only helps the railroads but helps the country as a whole. dividends and interest for the period indicated-- Mr. LA FOLLETTE. Mr. President, I am very glad to have Mr. LA FOLLETTE. The period 1920-29. the Senator's observation on that point. I listened with Mr. TYDINGS. Yes. It is a fact, however, that none great interest to his very able address upon the subject. of the railroads' earnings, of any consequence, went into I am entirely in agreement with him that we shall never an amortization of their debts. have a satisfactory transportation system in this country Mr. LA FOLLETTE. That is perfectly true; but I am not until there is real coordination between rail and water trans arguing that point. I am saying that in the period 1920 portation, and, as I shall try to show in a few moments, I to 1929, when the railroads were experiencing an increase think it is clearly demonstrable from the facts which are in competition from both highways and waterways, they already available, that the competition of the Panama Canal were able to pay out in interest and dividends on the aver with the western railroads has not been detrimental to their age $1,000,000,000 a year. interests-has, in fact, increased their tonnage and t.heir Mr. TYDINGS. If the Senator will permit another inter revenues. ruption? I think it is also a fact that during that period, SEAWAY WILL BENEFIT RAILROADS AND THEIR EMPLOYEES while they did not amortize any of their old debt, they I am convinced, Mr. President, after a careful considera floated additional bond issues, which contributed to a new tion of this whole problem, that the completion of this sea debt, to which they did not apply any funds for sinking way will not adversely affect the interests of either the rail fund purposes. roads, their security holders, or the men who are employed Mr. LA FOLLETI'E. That may be true. The Senator, I on the transportation systems. The Interstate Commerce infer, is criticizing the financial policy of the railroads, and Commission reports show that railroad freight ton-miles at sometime I would be glad to go into that with him. I have increased from an average of 162,000,000,000 in the do not think, from the inference I draw from his interrup 5-year period 1901-5 to an average of 430,000,000,000 ton tion, that we differ very much about the wisdom of the miles in the 5-year period 1926-30. Now, if we except the policy of the railroads. It does not, however, alter the abnormal war years, these figures show a remarkably steady point I am trying to make, that during this period, when growth in the annual increase of ton-miles of traffic. competition by water and by highway was growing, that the If the figures were plotted upon a chart, Mr. President, railroads enjoyed a revenue during the period 1920 to 1921 and the abnormal years of the war were eliminated, the which on the average enabled them to pay out a billion curve showing the increase of ton-mile traffic in the ·united dollars a year in interest and dividends. States would show an almost unbroken and constant carve Those who contend that the seaway will absorb existing of increase for the period from 1901 to 1930. traffic from the railroads have not studied this question in This is extremely important in considering the effect of the light of the data now available. this navigation project upon the railroads and their em PANAMA CANAL AND THE WESTERN RAILROADS ployees, because it has been during recent years that the The Panama Canal affords the best example of the open railroads have experienced an increase of competition, both ing of an important water route in competition with the on waterways and on highways. If this increase in traffic railroads. The analysis of this competition shows that the hauled by the railroads is plotted on a curve it indicates a water-borne traffic through the Canal has been more largely traffic of 650,000,000,000 ton-miles in 1950, or 200,000,000,000 in heavy, bulky products which are low revenue producers ton-miles more than the all-time peak reached in the year for the railroads. It shows that at the same time, however, 1929. If we base the calculation upon population growth the railroads have increased their traffic in manufactured and the increased per capita ton-miles of traffic, the articles and other higher revenue types of traffic. The cargo estimate of increased traffic by the year 1950 is very like tonnage through the Canal grew from approximately the estimate based upon the yearly increase in traffic to 4,000,000 tons in 1915 to 30,000,000 tons in 1930. It might which I have just referred. These two methods of calcu be assumed by those who have not studied this question that lation concerning the traffic to be expected in 1950 indicate this traffic would inevitably have resulted in diminished that the traffic demands on our transportation facilities in revenue for the western roads, against which the Canal of that year will be at least 30 times the estimated traffic on fers its most serious competition. The facts are, however, the seaway. that at-the very period while this tremendous growth in ton When we confine the comparison to the railroads which nage carried through the Canal was taking place the west parallel the seaway, we find that increased traffic demands ern roads secured an increase, not only in total traffic, but for transportation in 1950 will exceed the ports traffic of also in density of traffic as compared with the period before the Great Lakes-St. Lawrence seaway 10 times over. In the Panama Canal was opened. considering this phase of the question, it should also be The gross and net income of the western roads increased pointed out that during the period 1920-29, when competi markedly during the period from 1915 to 1930. In the year tion on both highways and waterways was increasing to a 1929 it reached an all-time peak. The net income in that marked degree, the railroads enjoyed a revenue which en year of the western roads was $336,769,000. This was an in abled them to pay out during this period an average of a crease of 48 percent over the peak yea·r, 1913, in their history billion dollars a year in dividends and interest. before the Panama Canal was opened. The inescapable con Mr. BONE. Mr. President, I do not desire to interrupt clusion from these studies is that the tendency in traffic the Senator from Wisconsin-- changes and the special facilities of the railroads for hand Mr. LA FOLLETTE. I am perfectly willing and glad to ling high-yield revenue traffic in which the time element of yield to the Senator from Washington. transportation is a factor will be greatly stimulated by the M1:. BONE. I should like to ask the Senator a question proposed St. Lawrence Waterway. The possibility of draw Ja.ter about one of the power aspects of the development, but ing upon the raw materials of the world at lower costs than 1934 CONGRESSIONAL RECORD-SENATE 1673 • the present would inevitably bring rapid expansion to the the situation in terms of 1942. It seems to me that cannot industries already located at the ports and throughout the be too strongly emphasized. tributary seaway area. Obviously it will also make possible Mr. LA FOLLETTE. I agree with the Senator. the development of many new industries. Perhaps equally Mr. President, when I disctW>ed the pending treaty at the important from the economic point of view and from the special session, on May.29, 1933- point of view of the railroads, the seaway will save many Mr. LEWIS. Mr. President, with the consent of the able of the industries already established which are now menaced Senator from Wisconsin, I should like to address myself to by diminishing sources of raw materials. There can be no my distinguished friend and antagonist, the. Senator from question that the opening of the seaway will be of great Michigan. .benefit to the steel-producing communities located from Mr. LA FOLLETTE. Does the Senator say" antagonist"? Pittsburgh to Chicago, and benefits to those communities Mr. LEWIS. He is very much an antagonist to my con and to those industries will inevitably result in increasing tention. The Senator from Michigan encourages the able traffic for the railroads. Senator from Wisconsin by giving him an illustration in The railroads likewise will benefit in the opportunities the dicating that those who now fear some trouble to them seaway Will afford for the development of raw material re selves are worrying themselves about a matter as far away sources and manufactures in that great area which lies west as 1942, and he cannot see why such fears at such a dis of Lake Superior. tance should now enter into consideration. I ask my friend The inevitable industrial expansion on and adjacent to from Michigan where is the validity in the philosophy of the Great Lakes will afford millions of ton-miles of new the able Senator from Wisconsin and the Senator from high-yielding revenue traffic to the railroads to be trans Michigan when they present what they profess to be the ported inland. It will develop millions of new ton-miles of blessings which they contend will follow after 1942 the con traffic to be hauled by the railroads from adjacent agricul struction of the canal while they deny to others the right tural sections to urban industrial localities. In this con to contend concerning the curse which will follow to them nection it should be borne in mind that the seaway cannot under the same kind of construction and the same kind of be completed until 1942. Its total estimated tonnage is less usage? than 5 percent of the estimated increase in tonnage that Mr. VANDENBERG. Mr. President, will the Senator will be available to the railroads by that time. from Wisconsin yield? It is upon the basis of the new data which have been Mr. LA FOLLETTE. I yield. gathered at the direction of the President that President Mr. VANDENBERG. I have nothing to say about the Roosevelt predicated the statement in his message which, it objection the Senator from Illinois persists in raising seems to me, should set at rest, once and for all, the appre against the treaty and the project, but I do insist that the hension on the part of the railroads and their employees consideration of 1934 transportation conditions, in the that the seaway will injure their interests. I quote: midst of a depression, which we hope is to be shortly cured, For example, I am convinced that the building of the St. Law is not a fair test of a project which cannot come into oper rence seaway will not injure the railroads or throw their employees ation until 1942. I insist that the difference between meas out of work. • • • uring and assessing the project in 1934 and in 1942 rests Mr. SlilPSTEAD. May I further interrupt the Senator upon the fact that the Interstate Commerce Commission from Wisconsin to say that, in my opinion, a great deal of gives us the best possible authenticated opinion ·that trans the apprehension on the part of the railroads and railroad portation facilities will be needed in 1942 in a specified de labor which has led to opposition to the treaty is based upon gree to such an extent that this project, even if it were the delusion that the ships using the seaway can travel competitive, ·could not take up more than a small portion inland and carry cargoes in competition with the railroads of the newly created traffic and transportation needs. into the hinterland? Therefore, I submit that 1942 transportation conditions and Mr. LA FOLLETTE. Their opposition, apparently, is 1934 transportation conditions are two totally and utterly based upon the misapprehension that the tonnage which unrelated propositions. would be hauled in by the ships would either be dumped Mr. LEWIS. Therefore, I answer, if such be true-and in the Lakes or would be dumped upon the docks of the such, I admit, is true-how can it be consistently said that ports on the Great Lakes and never moved anywhere or used those who fear danger to themselves from the results must in manufacturing any articles which would require any not be equally accepted in their fears as are those who now transportation facilities. profess benefits based upon the same distance of time? It Mr. VANDENBERG. Mr. President-- is a calculation, and why adopt the calculation that is rosy The PRESIDING OFFICER. Does the Senator from Wis in its promise and deny that which is cloudy in its threat? consin yield to the Senator from Michigan? Mr. LA FOLLETTE. Mr. President, I should like to say, Mr. LA FOLLETTE. I yield. in reply to the comment just made by the Senator from Mr. VANDENBERG. I do not think the Senator can put Illinois, that we are basing these estimates upon figures too much emphasis upon the proposition he was recently taken from the Interstate Commerce Commission reports; urging, to wit, that it will not be until 1942 that the pro that they are the most accurate available information; that posed seaway can have any bearing of any nature what they have been gathered at the direction of the President soever upon any competitive phase of our transportation and transmitted to the Senate for its study. They are system in the United States. In other words, even if it entitled to more weight in this connection than the fears of were to be conceded for the sake of the argument that the special interests which have not considered and weighed seaway through its competition would take railroad jobs these new data. away from railroad labor, it must also be concedeq, on the CHAMJ!ER OF COMMERCE OF NEW YORK AGAINST THE TREATY other side, that not one railroad job can be affected in any Mr. President, one of the leading organizations opposed to possible degree until 1942. this treaty is the Chamber of Commerce of the State of I can fully understand the feeling of restlessness and un New York. That is the same organization which took the happiness and uncertainty with which railroad labor con lead a few weeks ago in opposition to the financial policy . templates its situation in 1934, but we must project our of this administration. vision into 1942 in order to get a fair estimate of the situa In discussing this question on May 29, 1933, I presented tion and to do justice to the equation. to the Senate an analysis of the membership of the New I am confident that the Senator is wholly justified in his York State Chamber of Commerce. This analysis demon estimate respecting the compensating traffic which will have strates that the chamber is not representative of the busi been developed in 1942, but, fundamentally, he puts a square ness and economic· interests of the State of New York. I challenge to the labor criticism of the pending treaty when desire to quote from portions of that analysis in order that he asks them to lift their eyes from 1934 and contemplate the Senate may have an understanding of the influences 1674 CONGRESSIONAL RECORD-SENATE JANUARY 31 which are responsible for the bitter opposition of the New Banking, including investment bankers ______510 York chamber to this treaty. Insurance------ 105 BrokersReal estate------______62 Mr. President, I ask leave to insert at this point certain 53 extracts from my remarks on"that occasion. Shipping------Railroads ______41 39 The PRESIDING OFFICER. Without objection, it is so Utilities______32 ordered. The matter referred to is as follows: 842 Other classifications ______696 On November· 18, 1932, a representative of the Chamber of Commerce of the State of New York appeared before the Foreign Relati~.ns Committee in opposition to the pending treaty. This Total membershiP------1, 538 'JrgaHfzation presented a long report and copies of resolutions The above figures show clearly that the New York chamber is strongly opposing the development of the St. Lawrence River. dominated by New York City financial and banking interests, At the regular monthly meeting of the Chamber of Commerce and the great corporations associated with them. A considerable of the State of New York on April 6, 1933, a further report and proportion of the members have a clear-cut, selfish interest in resolution were unanimously adopt..;d, advancing in almost identi- blocking the St. Lawrence development and this inter~st is far cal terms the proposal for an economic study presented on the from being identified with the general interest, either of the peo fioor of the Senate on April 17 by the senior Senator from New ple of New York or of the country as a whole. York [Mr. COPELAND]. The 510 listed as bankers include in their number 64 who are The resolutions adopted on April 6 are as follows: also railroad directors and 36 who are directors of important "Resolved, That the Chamber of Commerce of the State of New utilities interested in electric power. Thus, the railroad and power York urges upon the Senate of the United States that action on the l interests have a considerably larger representation in the chamber Great Lakes-St. Lawrence Deep Waterway Treaty be held in abeyance than the original list would indicate. until official and up-to-date data has been made available by a J. P. Morgan & Co. alone accounts for 13 members of the competent nonpartisan body upon the expenses of operation, the chamber including J. Pierpont Morgan himself, Henry s. Morgan, amount of traffic, the savings to the United States, and other Junius S. Morgan, Jr., Thomas W. Lamont, Thomas s. Lamont, economic questions involved in the St. Lawrence project; and Henry P. Davison, E. T. Stotesbury, Charles Steele, Thomas Coch be it further ran, R. C. Leffingwell, Harold Stanley, George Whitney, and "Resolved, That copies of this report be sent to the President Francis D. Bartow. and Members of the Senate." Kuhn, Loeb & Co. are represented by Otto Kahn, J. J. Hanauer, This was the origin of the demand that, after more than 30 and William Wiseman. years of investigation, the United States Senate should not be The big public-utility interests which have been committing permitted to pass upon the pending treaty until an entirely new American business to opposition to publicly owned utllity projects economic study was authorized and the findings resulting there- are well re:;>resented. from reported to this body. That demand has been met by the Floyd L. Carlisle, chairman of the boards of the Niagara Hudson report submitted by the President with his message on January 10. Power Corporation, the Consolidated Gas Co. of New York, and the On October 6, 1932, the Chamber of Commerce of New York New York Edison Co., is a member. adopted a report which condemned the St. Lawrence development George B. Cortelyou, president of the Consolidated Gas Co., in its entirety. I quote from this report: holding company for all the New York City electric properties, is a "This chamber has gone on record on several occasions against member. Government participation in business. It seems as if the .huge Lewis Gawtry, who is a member of the chamber, is a trustee of expenditure contemplated on the St. Lawrence is closely akm to Consolidated Gas Co. of New York and a director of its subsidiary the enterprises this chamber has so often critlcized. • • • electric companies, including New York Edison Co., United Elec No scientific principles exist which can be used as a guide in tric Light & Power Co., Westchester Lighting Co., and Yonkers allocating the expenditures on the canal which are for navtga- Electric Light & Power co. tion to be paid by the Government, and the expenditures which Donald G. Geddes, a member of the chamber, is trustee of are for water power and accordingly should be self-sustaining. Consolidated Gas Co. of New York, and director of New York The result will be that the priy~te_ electric power industry will Edison, United Electric Light & Power, New York & Queens Elec not know for years 'Y'hat co~pet1t1on ~o expect from .the St. Law- tric Light & Power, etc. Other trustees of Consolidated Gas in rence. Also, the railroad mdustry will be uncertam as to the the list are Charles E. Mitchell and George Whitney, of J. P. effect the opening of the canal will have ~pon i~s business. It Morgan & co. might even develop thl;lt the Government will go mto the opera- Harold s. Sutton, assistant secretary both of Floyd L. Carlisle tion of barges or similar craft on the St. Lawrence Waterway & Co. and Niagara Hudson Power Corporation, is a member. when completed, as it has on the Mississippi River, which this Harold Stanley, already noted as a member of the firm of J. P. chamber condemned on J?ecember 3, 1931. It might even happ~n Morgan & co., is also present as a director of Niagara Hudson, that Congress would decide to put th~. Federal Government still the United corporation, the United Gas Improvement Co., and the further into the water-power business. • Columbia Gas & Electric Co., representing Morgan's far-flung In an earlier report, on similar grounds, the Chamber of Com- utility interests. Other Morgan partners appearing as utility merce of the State of New York_ strongly condemned the Muscle directors are E. T. Stotesbury, of United Gas Improvement, and Shoals power project, embodied in the Norris bill passed by Con- George Whitney, of Consolidated Gas. gress by an overwhelming vote, and signed by President Roosevelt. John E. Alfred is a member of the chamber, representing a con- ! have before me the analysis of the membership of the Cham- siderable number of utility companies, including several Cana ber of Commerce of the State of New York to which I have dian companies directly interested in preventing the development referred. of cheap power by New York State. These are: Montreal Light The analysis demonstrates that the pending St. Lawrence Treaty Heat & Power Co., Cedar Rapids Manufacturing & Power Co., is being opposed today with the support of the leading partners Shawinigan Water Power Co., and the Saguenay Transmission Co. of J .' P. Morgan & Co., and the powerful combination of railroad Alfred is also a director of the Duke-Price Power Co. and the and public-utility companies operating in the eastern section of Pennsylvania Water & Power Co. the country which are under Morgan control. The Henry L. Doherty interests, which have been actively press- The analysis shows beyond question that the Chamber of Com- ing an application before the Federal Power Commission for the merce of the State of New York, which has been active in the right of the American Super-Power Corporation to develop the organized opposition to the pending treaty, represents the finan- International Rapids section of the St. Lawrence River for power, cial district in Wall Street, and is utterly indifferent to the bene- have three representatives in the membership of the chamber fits this project will bring to the consumers of electricity in New of commerce, including w. Alton Jones, chairman of the execu York City, and to the farms and homes in the State as a whole. tive committee of Henry L. Doherty & Co., as well as director of The pretense that the New York Chamber of Commerce is in Cities Service and its subsidiaries; Arthur B. Leach, of A. B. Leach any true sense representative of the State of New York as a whole & Co., chairman of the executive committee of the American is shown to be a fiction by the fact that out of 1,538 members, super-Power Corporation, which is making the application; and only 142, or less than 10 percent of the total number, show an J. M. McMjllen, of the Henry L. Doherty and Cities Service. address outside of the city of New York. Most of the 142 either Lewis E. Pierson, director of Electric Bond & Share Co. and show addresses within the metropolitan area or indicate that National Power & Light, discussed at considerable length by Sen they have retired and live outside the State. A careful check ator NORRIS on May 4 in his remarks on the attitude of the United reveals not more than 10 who can in any sense be considered as states Chamber of Commerce toward Muscle Shoals, is a member. representing any local business interests in the State outside the Other important utility men in the list are: Frank L. Dame, New York City area. president of the North American Co.; Philip G. Gassler, president The interests represented by the membership of the Chamber of the Columbia Gas & Electric Corporation and its subsidiaries; of Commerce of the State of New York are even more limited E. T. Stotesbury, a J. P. Morgan director of the United Gas Im than the above statement would indicate. More than 50 percent provement Co.; Albert A. Tilney, chairman of the board of Bankers' of the membership actually belongs to the area known as "lower Trust Co., who is also director of American Gas & Electric Co., Manhattan" and appears to be definitely associated with the Electric Power & Light Corporation, and National Power & Light financial capital of the country. There are 164 members giving a ICo.; Louis H. Seagrave, director of Standat·d Gas & Electric Wall Street address. Co., Standard Power & Light Corporation, and U. S. Electric A classification of the membership by occupation shows the Power Corporation; Charles A. Stone, chairman of the board o! following: Stone & Webster; and many others. 1934 CONGRESSIONAL RECORD-SENATE 1675 Eastern railroads are represented by such executives as W. W. Pacific seaooards and to recover the disadvantage which became Atterbury, president of the Pennsylvania; Albert J. County, vic::e effective with the completion of the Panama Canal. president of the Pennsylvania; Patrick E. Crowley, former presi I sincerely trust that you will do everythinc; in your power to dent of the New York Central; John M. Davis, president of the further this major plank in PreSident Roosevelt's program of Delaware, Lackawanna & Western; Edward E. Loomis, president of economic rehabilitation. the Lehigh Valley; Leonor F. Loree, president of the Delaware & Very sincerely yours, Hudson; Roy Barton White, president of the Central Ra1;1road of GEORGE J. SAVAGE, Secretary. New Jersey; and Daniel Willard, president of the Baltimore & STATEMENT OF THE NORTHERN FEDERATION OF CHAMBERS OF COM Ohio, as well as by Cornelius Vanderbilt, member of boar~ ~f MERCE URGING THE SIGNING OF THE ST. LAWRENCE WATERWAY managers of .the Delaware & Hudson Co. and director of Illmo1s TREATY BY THE UNITED STATES SENATE Central. If the Straits of Gibraltar were blocked through obstructions so This is the organization which is the head and front of the that only vessels of 14-foot draft could get through, there would be opposition to the St. Lawrence project. It is this little group of no argument about the immediate necessity of excavating the Wall Street bankers, public-utility officials, and railroad execu channel immediately so that the vessels of the world could once tives which is resisting the policy of President Roosevelt's ad more reach the ports of the Mediterranean Sea. ministration to develop the St. Lawrence for power e.nd naviga This imaginary situation exists in close parallel in this country tion, and which is appealing to Members of this body to betray today; we have a vast inland sea of the Great Lakes, and connect party pledges by blocking and defeating the pending treaty. ing channels are between all the Lakes, so that an ocean-going J. P. Morgan & Co. has a direct interest in the defeat of the St. boat can go from Ogdensburg to Duluth without a bit of trouble, Lawrence Treaty. provided her draft is 25 feet or under. But ocean-going boats can This great banking house holds dominion over an empire com not get up to the Lakes and the lake boats cannot get down to posed of the chief trunk-line railroads and public utility power the seaports because of the bottle neck at the International corporations of the East. It has underwritten hundreds of mil Rapids section of the river. And as a result a vast region extend lions of dollars in railroad and power securities. ing over most of the northern half of the continent is land-locked The House of Morgan is pursuing the narrow, short-sighted, and and 40,000,000 people are deprived of their desire to have free selfish policy of bottling up the interior of the United States and access to the ocean. preventing its development by seeking to continue the ob~c Since the early days of discovery on this continent the impor tion to navigation existing today in the undeveloped International tance of providing a bypass around these rapids of the St. Lawrence Rapids section of the St. Lawrence River. has been evident to the rulers of North America. First the French The development of this section of the river under the pending and then the English built locks around the rapids of this mighty treaty is opposed by Morgan and allied interests in part because river, and as early as 1797 provision for a 9-foot lock around the it will affect the transportation monopoly of the Morgan trunk various sections of the rapids was made. Gradually this 9-foot line roads running from Chicago to the seaboard, but chiefly depth was increased to 14. because it will produce 1,100,000 horsepower, to be developed by a However, since 1914 the depth of these channels has not been public agency furnishing electricity at low rates, in competition increased. The railroads are not expected to run with 1914 style with the Morgan-controlled power companies. of locomotives and the power companies are not expected to This explains why 13 of the partners of J. P. Morgan & Co. are generate power with 1914 style of equipment. Why expect lake participating as members of the Chamber of Commerce of the shipping to get along with 1914 type of locks? State of New York in its campaign to defeat the st. Lawrence Aside from the advantages to 80 percent of the ocean shipping, Treaty. _ the demands of lake shipping alone require the deepening of these The people of the Middle West are in no mood today to tolerate locks to meet modern conditions. this policy of obstruction. The House of Morgan, with all its vast influence and wealth, is not powerful enough to stand in the way COSTS OF THE SEAWAY of a public project that is vital to the development of this coun Much has been made of the argument that the United States try. You cannot cheat 45,000,000 people of their birthright and will spend more money on this project than Canada. The facts sabotage the forward movement in transportation and industry are that each nation is given credit for the money they have and expect the people of the midcontinent to submit to it forever. already spent in making certain channels wholly in their own There is another special interest which has a stake in the defeat waters navigable for vessels of 25-foot draft, and the total addi o! the St. Lawrence Treaty-the Aluminum Co. of America, owned tional expense for the international section is then divided after and controlled by the Mellon family. giving these credits. The works charged to the power development During the hearings before the Foreign Relations Committee, the are to be built by the Province of Ontario and the State of New fact was developed that the Aluminum Co. is diverting 20,000 York, each on their own side of the- river, and none of this power cubic second-feet of the waters of the St. Lawrence to its plant at expense is chargeable to the United States Government. Massena, N.Y .• for the generation of hy~oelectric power. The EMPLOYMENT EFFECT Aluminum Co. attempted to secure the right to divert one four\h Conservative estimates are that over 22,000 men will be em of the entire American share of the flow of the St. Lawrence under ployed in the building of the navigation and power works, and that the treaty, a right which was denie~ through the vigilance of the well over 50,000 men will receive employment through the new power authority of the State of New York. factories erected at the source of the power. These figures are The passage of the joint resolution which has already been for the direct employment only and the indirect employment of voted by the House and the ratification of the pending treaty will men in the plants producing the materials used in these projects extinguish the diversion which is today being exercised by the will run to many times that figure. Aluminum Co. Every day that ratification is delayed the Alumi num Co. is emiched by the diversion of the waters of the St. POWER Lawrence, for which it does not pay a dollar into the Federal It is estimated by engineers of the New York State Power Au Treasury. thority that 1,100,000 horsepower will be developed on the Ameri It may be said in passing that the Aluminum Co., later in com can side of the rapids, and that this power can be distributed bination with the General Electric and the Du Pont interests, for costs that are approximately as follows: In the Utica area, sought for more than a quarter of a century to obtain control of 130 miles away, 2.99 mills per kilowatt-hour, with 60-percent load the water-power rights on the St. Lawrence which were vested in factor; at the end of the 300-mile transmission line, 4.20 mills, the people of New York in 1931 by Gov. Franklin D. Roosevelt. with 60-percent load factor. The people of the State of New York are paying an average of Mr. LA FOLLETTE. Mr. President, I ask permission to 6 cents per kilowatt-hour, and in the vicinity of the proposed insert a letter and memorandum from the Northern Fed development 10 and 11 cents per kilowatt-hour. They look across eration of Chambers of Commerce of New York. at their neighbors in Ontario who are paying a cent and a half per kilowatt-hour, and they read in the papers of the Tennessee The PRESIDING OFFICER. Without objection, it is so Valley development and the Columbia River development. Why ordered. must they be forced to put up with their present rate schedule The matter referred to is as follows: and with an undeveloped countryside just because a few of the big banking houses and railroads are against this power develop THE NORTHERN FEDERATION OF CHAMBERS OF COMMERCE, ment? Alexandria Bay, N.Y., January 23, 1934. President Roosevelt has proposed a method of utility regulation Hon. ROBERT M. LA FOLLETTE, Jr., known as the " yardstick method ", and nowhere is this yardstick United States Senate, Washington, D.C. more needed than in New York State where 12,000,000 people are DEAR Sm: I am enclosing a brief memorandum prepared by this paying exorbitant rates because of the absence of such a. yardstick. organization covering the proposed St. Lawrence seaway devel opment. PROPONENTS AND OPPOSITION Regardless of the propaganda emitti.ng from New York City, the In opposition to this project we find the General Electric Co., northern half of New York State is solidly in favor of the St. the Aluminum Co. of America, the banker and utility controlled Lawrence development. There is a chance, if this development Chamber of Commerce of the State of New York, the railroads, goes through, for a. new industrial center to be added to the the utility companies, and a few eastern ports. United States which will be of equal size and importance to the In favor of this development we have the people of the Mid Pittsburgh region or the proposed Tennessee Valley industrial west agricultural States, the people or the State of New York as sector. In · addition to the industrial development, the St. Law expressed through their legislature when they passed the power rence development offers a chance for relief of the domestic user authority bill, all the consumer organizat ions in the State of New of electricity in this territory where rates are excessively burden York, the Republican Party of the United States through their some and also offers the Midwest manufacturer and farmer an platform pledges, the former President of the United States Her opportunity to get back on equal terms with the eastern and bert Hoover, and finally the President of the United States Frank- 1676 CONGRESSIONAL RECORD-SENATE JANUARY 31 Un D. Roosevelt, who won national recognition through his fight an affiliate or is tied in with the Morgan power group. against the power interests of the State who wanted to develop the St. Lawrence privately ins1iead of in the people's interest. Some of the figures that have been published in this series INDUSTRY of articles are astounding. For instance, I note in the issue The northern half of New York State has never been developed of January 31 that a small neighborhood store pays $27.55 industrially because of the absence of transportation and cheap for 300 kilowatt-hours of light service, and that the charge power. Within 50 miles of the proposed development there are for the same amount of light service to a home, which has a large quantities of magnetic ore, zinc, lead, arsenic, molybdenum, and the materials for a huge ceramic industry. Lack of fuel and somewhat better rate, is $18.81 for 300 kilowatt-liours, or an power, combined with the transportation factor, have prevented average throughout of 6% r,ents per kilowatt-hour. It the development of these mineral resources. seems to me incredible that in any civilized community of The St. Lawrence development will provide the transportation this country a private power company can exact a rate like and the power development will provide the heat to refine these metals. that for domestic use for 300 kilowatt-hours of service. There is a definite relationship between the development of As the Senator from Wisconsin is aware, I come from a power resources and the resultant industrial expansion which fol section of the country where there is a tremendously big lows the power development. Using the experience of the Prov ince of Ontario, the following relationship between the power and hydroelectric development, and I claim to know a little industrial development has been developed: something about the cost of developing electric energy. I Capital invested per 1,000 horsepower in industry, $1,250,000. am wondering whether the State of New York now has an Annual salaries and wages per 1,000 horsepower, $200,000. agency in existence able to safeguard the rights of the con Employees per 1,000 horsepower, 185. Using these figures as a basis, the installation of 1,000,000 horse sumers. I am aware of some of the work that is being done power means $550,000,000 additional capital investment in indus there, but I want the Senator to assure this body that there trial plants, $90,000,000 additional annual pay roll, $220,000,000 is an agency in the State of New York that can effectively additional factory output annually, and 82,500 additional workers in industrial plants. transmit the current to the people of New York, the ultimate Shall we let this huge investment and huge annual pay roll consumers, if this project shall be approved? It will not migrate to Canada, or shall we help New York State and the coun do, in my judgment, Mr. President, for this plant to be built try at large by adding this investment in industry and this pay and the current to be sold at the bus bars to private com roll to that of this side of the river and boundary? Respectfully submitted. panies that then will distribute it, because we may have a GEORGE J. SAVAGE, Secretary. repetition of the Muscle Shoals fiasco; and I want the Sena tor to tell me, and in so doing to tell other Members of this Mr. LA FOLLETTE. Now, Mr. President, I shall be glad body, whether, if this development shall be undertaken at to yield to the Senator from Washington, as I am about to a cost of somewhere around $90,000,000 on the part of the conclude, if he desires to ask me a question. State of New York, we can have assurance that the people Mr. BONE. I hope the Senator will agree with one of of New York and not the Morgan power syndicate will derive the conclusions which I want to state in my question. For the advantage of it. a great many years this country witnessed what was to me a very sordid spectacle, a monstrous diversion of public Mr. LA FOLLETTE. Mr. President, there can be no ques functions and a ruthless invasion of the United States tion that if this treaty shall be ratified and the power proj Treasury for the benefit of private business interests in the ect developed, it will be developed under the New York State building and operation of the Muscle Shoals power project. Power Authority created under the leadership of Mr. Roose It was built at great expense out of the Public Treasury; velt while he was Governor of the State of New York for and because it was hamstrung by the Congress, the Govern the specific purpose of protecting the rights of the people in ment was compelled to sell power at the bus boards of that this great natural resource, namely, the power of the st. plant to the Alabama Power Co., a private power organiza Lawrence River. tion, for 2 mills per kilowatt-hour. I visited that section of When the treaty was finally negotiated the question of the the country a few years ago, and I saw that same power division of cost between the New York State Power Author retailed by private power companies, which were then the ity and the United States Government came up. A series sole and exclusive beneficiaries of this vast public expendi of conferences were held and finally an agreement was ture, for prices ranging up to 18 cents a kilowatt-hour, or arrived at whereby the State of New York was to pay 90 times what the private companies paid the Government $89,000,000 of the cost of the development of the works in for the power. the Internationail Rapids section. Since the element of production of power has been brought There was passed by the House of Representatives at the into this argument repeatedly by the Senator from Wis last session, and there is still pending in the Senate, a joint consin, by my good friend the Senator from Illinois [Mr. resolution authenticating and carrying that agreement be LEWIS], and by others, it becomes important, it seems to me, tween the New York State Power Authority and the Gov for us to have a clear picture of what is to be done with the ernment of the United States into legal effect. I will quote power that is to be developed on the St. Lawrence, because, from a proviso in that joint resolution which has the full if that is to be in any wise a determining factor in the approval and the active support of the New York State mind of myself or other Members of this body, then, cer Power Authority as well as of the President of the United tainly we have a right to know or to be assured to as great States: a degree as is possible that there will not be a repetition of Provided, That no part of the United States share of the water the Muscle Shoals fiasco; that the taxpayers of the country in the International Rapids section of the St. Lawrence River shall be diverted for the benefit of any person or private corporation, will not be sweated in taxation to build at public expense a nor shall the use of any part of said water or the rights pertain great hydroelectric development only to enrich the Morgan ing to said water be sold, leased, or otherwise aUenated to any power syndicate of the State of New York. That point person or private corporation for the generation of hydroelectric becomes pertinent and important in light of the Senator's power. declaration made a few moments ago, and that leads me to If the Senator will refer to page 20 of Senate Document ask the Senator this question. Is there the possibility and No. 110, I will read from the heading "Status of St. Law probability in the State of New York that this development, rence Power Project Under the Laws of New York": which will make available 1,100,000 horsepower of electric The St. Lawrence power project of the State of New York is energy, will be developed through an agency that will effec provided for in chapter 722 of the Laws of New York, approved tively transmit this power to the ultimate consumer at a by the Governor April 27, 1931- low price, some agency through which private power com The reference is to Governor Roosevelt- panies will not be able to build one toll gate after another This act was the fruition of 25 years of effort to provide for with which to reap excessive profits? development of St. Lawrence power by the State in the public I have been reading, Mr. President, with a great deal of interest. Licenses had been sought by private corporations for interest, a series of articles running in the New York Amer the right to exploit the· power resources in the international rapids section, but such applications were rejected by both State ican dealing with the controversy between the people of and Federal agencies. Westchester County-I think it is-in the State of New Section 5 of the act specifically directed the power authority York, and the Yonkers Power Co., which I believe is either " to cooperate with the appropriate agencies and officials of the 1934 CONGRESSIONAL RECORD-SENATE 1677 United States Government to the end that any project under Mr. BONE. I believe the Senator shares my view that taken " by the trustee- that will be a very happy circumstance. "shall be consistent with a.nd in aid of the plans of the United States for the improvement of commerce and navigation along Mr. LA FOLLETTE. Judging by the manner in which the St. Lawrence River, and shall be so planned and constructed the trustees have fought for this project and fought to as to be adaptable to the plans of the United States therefor, so maintain the public interest in it, I think we need have no that the necessary channels, locks, canals, and other navigational facilities may be constructed and installed by the United States in, fear that they will not exercise every legal and economic through, and as part of the said project." advantage which the law so sweepingly confers upon them section 5 directed the trustees to- to assure that electricity shall be delivered to the consumers .. 'develop, maintain, manage, and operate' the project and 'to at the lowest possible rate, regardless of whether or not make provision so that municipalities and other political subdi visions of the State • • • may secure a reasonable share of Governor Lehman wins his fight to amend the law of New the power' 'subject to conditions which shall assure the resale York at this session to provide that municipalities may own of such power to domestic and rural consumers at the lowest their own distributing systems. possible price.' " Since the enactment of the law the trustees of the power Mr. BONE. Mr. President, may I interrupt the Senator authority have recommended additional legislation to per again? mit municipalities which do not now enjoy that right under The PRESIDING OFFICER (Mr. THOMAS of Utah in the their charters to purchase St. Lawrence power for distribu chair). Does the Senator from Wisconsin yield further to tion to consumers. the Senator from Washington? In his message to the legislature, January 3, 1934, the Mr. LA FOLLETTE. With pleasure. Governor of New York made the following recommendation: Mr. BONE. I notice in the papers there is a controversy I trust that during this session a definite conclusion will be in the State of New York induced by the action of Governor reached by the Federal Government on the treaty with Canada Lehman in asking the legislature to change the law there for the development of the St. Lawrence River. The important thing is that power be developed as quickly as possible for the so that municipalities might own their own electric distribu benefit of the consumers of electricity in this State. tion system. New York appears to be somewhat old-fash Pending the final settlement of this problem I repeat the rec ioned and has quaint ideas about some things. They have ommendation made to you last year, that you adopt legislation a provision of law, or perhaps I should say an absence of a to permit municipalities of the State, after approval by a refer endum vote, to purchase and sell electricity developed from the provision of law, that makes it impossible for a city to own St. Lawrence River. Municipa.lities will in this way be able to buy its own electric distribution system unless it has incorpo cheap electricity, and at the same time be given a potent weapon rated that provision · in its charter, and not having that with which to compel existing public-utility companies to provide power it cannot get it except by going to the legislature. If them with electricity at reasonable rates. the New York Power Authority wants to give this power to The evident intent and effect of the laws of New York cities, it can do so, but otherwise they are trussed up in a providing for the St. Lawrence power project has been the strait-jacket of law and cannot get the power to sell to provision of a yardstick on electrical costs and rates for the their own. They are liable to be harmed and rendered abso benefit of the consumers of current and for the protection of lutely impotent even though the New York Power Authority the public against unfair charges. might want to give them this power and make it available The development of the St. Lawrence by a public agency to them. represents the last opportunity available to provide the Mr. LA FOLLETI'E. I do not think that is a logical northeastern section of the United States with the benefits deduction-- · assured other sections through development of Muscle Mr. BONE. Of course that is a local condition. I admit Shoals, Boulder Dam, the Columbia River, and similar that. public projects. · Mr. LA FOLLETTE. I do not think it is a logical deduc The Senator raised some question as to the cost of elec tion which the Senator has made, waving aside the question tricity in Yonkers, near New York City, where consumers of whether or not the legislation will be enacted, because I enjoy the privilege of paying their .bills to a private power wish to point out that a formula was set up by the New corporation owned and controlled through holding com York Power Authority Act to which any contracts made panies by~. P. Morgan & Co. I want to invite the atten with private companies for transmission and distribution of tion of the Senator to the estimates of cost. In the first current must conform. The act specifically provided for- place, I point out that under an agreement already reached (a) Full and complete disclosure to the power authority between the United States Engineers and the Power Au of all factors of cost in transmission and distribution of thority of New York the investment of $89,726,750, to be power, so that rates to consumers may be fixed initially in assumed by the New York Power Authority as the share of the contract and may be adjusted from time to time on the the total cost of developing the International Rapids sec basis of true cost data. tion allocable to power, will make power available. at an (b) Periodic revisions of the service and rates to con investment cost of $81.57 per installed horsepower and sumers on the basis of accurate cost data obtained by such $115.74 per primary horsepower. It renders the proposed accounting methods and systems as shall be approved. by the power development one of the most economical on the con trustees. tinent, comparing with an investment cost of $136 per in (c) That rates, services, and practices of the purchasing, stalled horsepower for the present capacity of Conowingo. transmitting, and distributing companies in respect to the $120 for Fifteen Mile Falls, N.H., and $122 at Muscle power generated by this project shall be governed by the Shoals. provisions and principles established in the contract, and I also point out that none of the projects which I have not by the regulations of the Public Service Commission or mentioned have the large percentage of primary power which by the general principles of public service law regulating is available on the St. Lawrence. rates, services, and practices. Mr. President, in connection with the effect which this That puts the matter entirely in the hands of the power might have on existing rates in the State of New York and authority. the other States in the northeastern section which are Mr. BONE. Of course, the Senator is aware that it would within transmission distance, I want to point out that the St. invite a recasting of the rate structures of every private Lawrence power can be transmitted to southern New York, power company in the State of New York, because mani .. a distance of approximately 300 miles, with allowance for f estly they could not sell power from a public plant on the transmission losses, approximately 2.2 mills at a 60-percent St. Lawrence at one price and power on the same service load factor and 1.6 mills at an 80-percent load factor. lines in another section at another price. It would invite a St. Lawrence power can be transmitted to the Utica area. complete recasting of their entire rate structure. . a distance of 135 miles, with allowance for trans~ission Mr. LA FOLLETTE. And that is exactly what I think losses, for approximately 0.97 mills at a 60-percent load would happen. factor, and 0.73 mills at an 80-percent load factor. 1678 CONGRESSIONAL RECORD-SENATE JANUARY 31 On the basis of the above conclusions the total cost of sylvania [Mr. REED], and the Sanator from North Dakota St. Lawrence po.wer delivered at the end of the 300-mile [Mr. NYE]. transmission line would be 4.20 mills at a 60-percent load The PRESIDING OFFICER. Eighty-six Senators having factor and 3.13 mills at an 80-percent load factor. The cor answered to their names, a quorum is present. responding figures for delivery in the Utica area would be [Mr. DIETERICH addressed the Senate. After having 2.99 mills at a 60-percent load factor and 2.24 mills at an 80- spoken for about 1 hour and 30 minutes, he yielded the floor percent load factor. for the day.. His speech is published entire on p. 1739.J Mr. President, I had not intended to go into the power Mr. ROBINSON of Arkanrns. Mr. President, I understand aspect of the matter, but I appreciate the great interest that the Senator from Illinois would like to suspend his re of the Senator from Washington [Mr. BONE] in public power marks, particularly in view of the fact that some days ago development. His long and distinguished record in his the Senate entered into an agreement to take up this after own State in behalf of the public development of power is noon a nomination pending on the Executive Calendar, one which should give commanding weight to his point of being that of George C. Mathews to be a member of the view on the whole question of public power during the entire Federal Trade Commission. time that he continues to serve in this body, which I hope Mr. DIETERICH. It is entirely agreeable to yield the will be many years. floor at this time, and I will continue my remarks tomorrow. Mr. President, Senators opposing the treaty cannot fetter MESSAGE FROM THE HOUSE the great producing and consuming region in the Middle West, block off its natural highway to the sea, and divert A message from the House of Representatives, by Mr. its commerce to a few favored ports. They cannot get the Haltigan, one of its clerks, announced that the House had mass of the people of this country in any section or in any passed a joint resolution California. the purpose of testing the right of the President to remove a The VICE PRESIDENT. Without objection, the nomina member of the Federal Trade Commission for any reason except tion is confirmed. that stated in the statute. Further resolved, That there be appropriated out of the con The legislative clerk read the nomination of Robert E. tingent fund of the Senate a sum not to exceed $2,500 to pay for Clark to be United States marshal for the southern district the services of such counsel. of California. Mr. DILL. Mr. President, so far as I know, there is no The VICE PRESIDENT. Without objection, the nomina objection to Mr. Mathews from the standpoint of his fitness tion is confirmed. or his qualifications for the office. The discussion in the The legislative clerk read the nomination of Kingsbury B. committee and on the floor turned on the point of whether Piper to be United States marshal, district of Maine. or not Mr. Humphrey's legal rights would be in any way The VICE PRESIDENT. Without objection, the nomina weakened by the action of the Senate in confirming the tion is confirmed. nomination of bis successor. I think it was the unanimous The legislative clerk read the nomination of John T. sum .. judgment of the committee that such action was not in meryille to be United States marshal, district of Oregon. tended in any way to affect that question, and that it should The VICE PRESIDENT. Without objection, the nomina be understood that the Senate, by confirming Mr. Mathews, tion is confirmed. was in no way taking any side in the legai contest that is to POSTMASTERS be maintained before the court in the District of Columbia The legislative clerk proceeded to read sundry nominations and eventually before the Supreme Court of the United of postmasters. States. Certainly none of us want to do anything to inter Mr. McKELLAR. I ask that the nominations of postmas fere in any way with the rights which may be involved. ters, with the exception of that of George W. Mcintyre, Jr., The VICE PRESIDENT. The question is, Shall the nom to be postmaster at Grafton, N.Dak., be confirmed en bloc. ination be confirmed? Without objection. the nomination is The VICE PRESIDENT. Without objection, the nomina confirmed. tions, with the exception noted, are confirmed en bloc. The clerk will read the next nomination on the calendar. GEORGE W. M'INTYRE, JR.-RECOMMITTAL RECONSTRUCTION FINANCE CORPORATION Mr. McKELLAR. Mr. President, recurring to the nomi The legislative clerk read the nomination of Charles B. nation of George W. Mcintyre, Jr., to be postmaster at Graf Henderson, of Nevada, to be a member of the board of ton, N.Dak., the Senator from North Dakota [Mr. FRAZIER] directors of the Reconstruction Finance Corporation. asked yesterday that the nomination go over. I will ask The VICE PRESIDENT. Without objection, the nomina that it may be recommitted for the present to the Commit· tion is confirmed. tee on Post Offices and Post Roads. 1934 CONGRESSIONAL RECORD-SENATE 1685 The VICE PRESIDENT. Without objection, the nomina The VICE PRESIDENT. Without objection, the nomi tion will be recommitted as requested. nation is confirmed. MARINE CORPS Mr. ROBINSON of Arkansas. I ask that the remaining nominations for promotions in the Navy be confirmed en The VICE PRESIDENT. Is it the desire to have all nomi bloc. nations in the Marine Corps considered en bloc? The VICE PRESIDENT. Without objection, the re Mr. ROBINSON of Arkansas. Some of these nominations mainder of the nominations will be confirmed en bloc. That are of high rank and I think ought to be considered sepa completes the call of the calendar. rately. The VICE PRESIDENT. The clerk will state the first LIQUOR CONTROL IN THE DISTRICT OF COLUMBIA nomination in the Marine Corps. As in legislative session, The legislative clerk read the nomination of John T. Myers Mr. ADAMS. Mr. President, from the Committee on to be major general from the 1st day of September 1933, Appropriations I report back favorably without amendment with rank from the 1st day of October 1931. the joint resolution