1929 CONGRESSIONAL RECORD- SENATE 5373 1\Fr

$1929 CONGRESSIONAL RECORD- SENATE 5373 1\Fr$

1929 CONGRESSIONAL RECORD- SENATE 5373 1\fr. SMOOT. I do not object to it going over to Monday or ment, and it was considered by unanimous consent and agreed Tuesday. to, as follows : The PRESIDING OFFICER. The amendment will be passed Resolved, That the Secretary of the Senate hereby is authorized and over. directed to pay out of the appropr.,i.ation for miscellaneous items, con RECESS tingent fund of the Senate, fiscal year 1929, to James H. Davis, Mr. SMOOT. I move that the Senate take a recess until to widower of Lulu F. Davis, late an assistant clerk to the Committee on morrow at 10 o'clock. Commerce of the Senate, a sum equal to six months' compensation at The motion was agreed to~ and the Senate (at 5 o'clock and 50 the rate she was receiving by law at the time of her death, said sum , minutes p. m.) took a recess until to-morrow, Saturday, Novem- to be considered inclusive of funeral expenses and all other allowances. 1 ber 9, 1929, at 10 o'clock a. m. EMPLOYMEJNT OF TELEPHONE OPERATOR Mr. DENEEN, from the Committee to Audit and Control the SENATE Contingent Expenses of the Senate, reported Senate Resolution 150 (submitted by Mr. JoNES on the 7th instant) without amend SATURDAY, November 9, J9e9 ment, and it was considered by unanimous consent and agreed to, as follows : (LegiSlative day of Wedm,esda,y, Octobm- 30, 1929) Resolved, That the Sergeant at Arms hereby is authorized and directed The Senate met at 10 o'clock a. m., on the expiration of the to employ a telephone operator to be paid at the rate of $1,560 per recess. annum out of the contingent fund of the Senate until the end of the Mr. :trmss. Mr. President, I suggest the absence of a quorum. present Congress. The VICE PRESIDENT. The clerk will call the roll. The Chief Clerk caUed the roll,- and the fo-llowing Senators SALES OF . SHIPS BY THE UNITED STATES SHIPPING BOARD answered to their names : Mr. McKELLAR. Mr. President, may I ask the Senator from Allen Fess Kean Sheppard Illinois [Mr. DENEEN], whether the committee acted on Senate 'Ashurst Fletcher Kendrick Shortridge Resolution 129, for the appointment of a special committee to Barkley Frazier Keyes Simmons Bingham George La Follette Smoot investigate the sales of ships by the United States Shipping Blaine Glass McKellar Steck Board and Merchant Fleet Corporation? Blease Goti McNary Steiwer Mr. DENEEN. I will state that we were not able to.. get a Borah Gould Norbeck Stephens Bratton Greene Norris Swanson quorum until 15 minutes to 10 o'clock. We agreed to have a Brock Hale Nye Thomas, Idaho hearing some time next week at the convenience of the Senator Brookhart Harris Oddie Thomas, Okla. on the resolution which he submitted. Broussard Harrison Overman Townsend Capper Hastings Pa ttcrson Trammell Mr. McKELLAR. Very well. Caraway Hawes Phipps Vandenberg BILLS INTRODUCED Connally Hayden Pine Wagner Couzens liebert Pittman Walcott Bills were introduced, read the first time, and, by unanimous Cutting Hetlin Ransdell Walsh, Mass. consent, the second time, and referred as follows : Dale Howell Reed Walsh, Mont. Deneen Johnson Sackett Waterman By Mr. McNARY: - Dill Jones Schall Wheeler A bill (S. 205Q) granting the consent of Congress to the State Mr. DENEEN. I wish to announce that my colleague the of Oregon and the Haynes Slough Drainage District to con junior Senator from Illinois [Mr. GLENN] is necessarily absent sb·uct, maintain, and operate a dam and dike to pre,ent the from the city. I desire to have this announcement stand for the flow of tidal waters into Haynes Slough, Coos Bay, Coos County, day. Oreg. ; to the Committee on Commerce. Mr. SHEPPARD. I desire to announce that the junio-r Sena A bill (S. 2051) granting compensation to Cecil E. Crim; to tor from Utah [Mr. KING] is necessarily detained from the Sen the Committee on Finance. ate by illness. I will let this announcement stand for the day. A bill ( S. 2052) for the relief of Sargent Brown; to the Com Mr. SCHALL. My colleague [Mr. SHIPSTEAD] is absent on mittee. on Indian Affairs. account of illness. A bill (S. 2053) to amend section 102 of the Judicial Code; The VICE PRESIDENT. Seventy-six Senators have an to the Committee on the Judiciary. swered to "their names. A quorum is present. A bill (S. 2054) for the relief of Abe Blond; to the Com PROPOSED STATUES ON ABLINGTON MEMORIAL BRIDGE mittee on Naval Affairs. A bill (S. 2055) to provide for delivery of certain mail mat The VICE PRESIDEl\'T laid before the Senate a communica ter upon a date specified by the sender ; to the Committee on tion from the executive and disbursing officer of the Arlington Post Offices and Post Roads. Memorial Bridge Commission reporting, in compliance with A bill (S. 2056) to add certain lands to Crater National Senate Resolution 85, relative to proposed statues and the Forest· scheme of decoration for the Arlington Memorial Bridge, which, A bill (S. 2057) authorizing the purchase, establishment, and with the accompanying papers, was ordered to lie on the table. maintenance of an experimental farm or orchard in Mobile DISPOSITION OF USELESS PAPERS County, State of Alabama, and appropriating therefor; and The VICE PRESIDENT laid before the Senate a communica A bill ( S. 2058) granting certain reserved lands located in tion from the Secretary of the Treasury, transmitting, pursuant the national forests within the State of Oregon to such State to law, schedules and lists of papers, documents, etc., on the files for the erection, equipment, and maintenance of public build of the Treasury Depa,rtment which are not needed in _the trans ings; to the Committee on Agriculture and Forestry. action of public business and have no permanent value, and ask A bill ( S. 2059) for the relief of C. E. Briggs ; ing for action looking to their disposition, which was referred A bill ( S. 2060) for the relief of E. H. Flagg ; to a Joint Select Committee on the Disposition of Useless Papers A bill (S. 2061) for the relief of F. J. Goodenough; tn the Executive Departments. The Vice President appointed A bill (S. 2062) for the relief of Helen F. Griffin; Mr. SMoOT and Mr. SIMMONS members of the committee on the A bill ( S. 2063) for the relief of Thomas l\1. Hopkins ; part of the Senate. A bill ( S. 2064) for the relief of Theodor Knudson ; PETITIONS A bill (S. 2065) for the relief of Lincoln County, Oreg.; 1\fr. DENEEN presented petitions numerously signed by citi A bill ( S. 2066) for the relief of George Parker ; zens of the State of Illinois, praying for the passage of legisla A bill ( S. 2067) for the relief of the estates of Edwin G. tion granting increased pensions to Civil War veterans and their Scott, Clyde R. Dindinger, and Ra:lph R. Fraley ; widows, which were referred to the Committee on Pensions. A bill ( S. 2068) for the relief of Lester L. Wilson; and I A bill ( S. 2069) for the relief of Robert Wilson ; to the Com REPORT OF POSTAL NOMINATIONS mittee on Claims. Mr. PHIPPS, as in open executive session, from the Commit By 1\fr. GREENE: tee on Post Offices and Post Roads, reported sundry post-office A bill ( S. 2070) granting a pension to Etta K. Martin ; to nominations, which were ordered to be placed on the Executive the Committee on Pensions. Calendar. By l\Ir. SJIORTRIDGE: JAMES H. DAVIS A bill (S. 2071) granting an increase of pension to Thomas A. Mr. DENEEN, from the Co-mmittee to Audit and Control the West; to the Committee on Pensions. Contingent Expenses of the Senate, reported Senate Resolution A bill ( S. 2072) granting an increase of compensation to 133 (submitted by Mr. JONES October 15, 1929) without amend- Addie Weeks ; to the Committee on Finance. 5374 CONGRESSIONAL RECORD-SENATE NOVEMBER 9 '

ENFORCEMENT OF PROHIBITION TARIFF BIIL SITUATION Mr. HARRIS. Mr. President, I submit a resolution, and ask Mr. NORBECK. Mr. President, I ask to have printed in the that it be read and given immediate consideration. No one RECORD an article on the tariff bill situation appearing in the will object to it. It merely asks the Treasury Department to Evening Star, of this city, in its issue of yesterday, by Will P. furnish a comparative statement of what has been done under Kennedy. ihe extra appropriation made last year for prohibition enforce There being no objection, the article was ordered to be printed ment. in the RECORD, as follows: The PRESIDING OFFICER (Mr. FEss in the chair). The MOSES PREFERS FLEXIBLE TARIFF resolution will be read for the information of the Senate. Senator MosEs, of New Hampshire, President pro tempore of the Sen The resolution ( S. Res. 153) was read, as follows: ate, declared to a gathering of 50 New England manufacturing and R esolved, That the Secretary of the Treasury is hereby directed to export executives, officials of the Departments of State and Commerce, furnish to the Senate as soon as practicable the following information and Members of the House and Senate from New England last night in connection with the additional amount for tbe enforcement of the that he " would prefer the present tariff law with its 1lexlble provision, national prohibition act, as amended, appropriated by the first deficiency whereby a wise President can give the rates industries need," to the appropriation act, approved March 4, 1929: (1) Tbe total sums allocated tariff bill as it now stands in the Senate. from such additional amount to each administrative district for enforce He condemned "a movement that is afoot to turn over the home ment work therein and the periods for which such sums have been made markets to foreigners." available for expenditure in such districts; (2) tbe number of addi House Leader TILsoN, following Senator MosEs, said be expects the tional employees assigned to or employed in enforcement work in each House to work out a tariff bill that will "get rid of some of the administrative district since March 4, 1929, under such additional appro barnacles the Senate has put upoh it," and then said, significantly, priation; and (3) a statement of the enforcement work performed in " If not, we can retain some of the provisions of the present law." each administrative district for each calendar month during each of the These New England business leaders are spending two days in the following three periods : First, from April 1, 1929, to NovembQr 1, 1929 ; Capital making an intensive study of the foreign trade service avail second, from April 1, 1928, to November 1, 1928 ; and, third, a period of able to American manufacturers at the Department of Commerce and to · equal length ending March 31, 1929. demonstrate to their representatives in Congress and to tbe Federal The Senate, by unanimous consent, proceeded to consider the departments that they are vitally interested in aggressively promoting resolution. New England's foreign trade. The tour is under the auspices of the ' Mr. JONES. Mr. President, I did not understand the third New England Export Club o:f the Boston Chamber of Commerce in request in the resolution. cooperation with the New England office of the Federal Bureau of The PRESIDING OFFICER. The clerk will read it again. Foreign and Domestic Commerce and the Associated Industries of The legislative clerk read as follows: Massachusetts. · Representative TILsoN said later that he had returned to Washing (3) A statement of the enforcement work performed in each admin ton specifically to learn " what the Senate is going to do with the tariff istrative district-- bill," and will hold conferences with Senate and House leade1·s. He Mr. JONES. May I ask the Senator what he means by " the expressed his belief that "the Senate has done a great deal of harm enforcement work performed"? to the tariff bill," and predicted that the House will not accept the Mr. HARRIS. I want to get a statement of just what they debentures plan as tacked onto the bill in the Senate. He was em have done. Each prohibition enforcement officer in each district phatic in saying that the House will not surrender the 1lexible-tariff furnishes a statement to the Treasury Department at the end provision. of each month; and I want to get that total for the last six The hint thus given by a leader in both the Senate and House that months as compared with six months before these additional the tariff bill might be allowed to tail so as to retain the flexible-tariff m'en were ·put on the work. provision that is in the present Fordney-McCumber Act, gives encourage Mr. JONES. This is statistical information? ment to the plan that has been discussed secretly by House strategists. Mr. BARRIS. lt is statistical information. Brie1ly they propose to let the tottering Hawley-Smoot tariff bill die Mr. JONES. With that understanding, Mr. President, I have when it comes b!lck from the Senate. Then the Fordney-McCumber no objection to the resolution. Tariff Act, which initiated the " flexible-tariff " provision, would operate. The resolution was agreed to. Under this President Hoover could say to the Tariff Commission : "Extensive hearings have been held in both House and Senate show PROPOSED RIKER OVERLAND SEAWAY ing the need for increases in tariff duties. I want you to make a care l\Ir. FRAZIER submitted a resolution (S. Res. 154), which ful study of those hearings and of other information you have avail was ordered to lie on the table, as follows : able, and to report to me with recommendations on all agricultural Resolved, That Maj. Gen. Lytle Brown, Chief of Engineers, United products, and on certain other industrial products regarding the need States Army, be requesteq to immediately report to the · Senate his for protection." opinion of the practicability, the merits, and the demerits of the proposed The President could then, on such recommendations, exercise his Riker overland seaway as a deep waterway for seagoing vessels from authority to increase duties up to 50 per cent of present duties. Com near St. Louis to the Gulf of Mexico and as a means for 'fiood control modities that really must have protection could get it. and for drainage of the Mississippi Valley. Those who have proposed this scheme argue that it would be a notable demonstration of tbe economic soundness of giving the President such REIMBURSEMENT OF HON. WILLIA·M B. WILSON tariff-making power, for the protection of American industry in the · Mr. SHORTRIDGE submitted the following resolution (-S. Res. event that Congress fails to act. The people would know just where 155), which was referred to the Committee to Audit and Cpntrol the blame lies. Those who have been demanding undeserved protec the Contingent Expenses of the Senate: tion for certain schedules under the threat of otherwise preventing the Resolved, That the Secretary of the Senate hereby is authorized acceptance of needed duty increases would be eliminated from the and directed to pay out of the appropriation for expenses of inquiries "give and take" and log rolling of congressional tarill' tinkering. The and investigations, contingent fund of the Senate, for the fiscal year tari1l' hi-jackers would be thwarted. The undue activities of lobbyists 1928, $2,~03.93 to Hon. William B. Wilson for reimbursement for ex would. prove futile. penses. incurred in the collection of ballots and documents ordered by the The President's position with the country would be strengthened Senate Committee on Privileges and Elections in tbe counties of Dela where certain of his political opponents thought they "had him in a ware, Schuykili. Luzerne, and. Lackawanna, State of Pennsylvania, for hole.'' Playing of politics in the Senate would get a deserved black use in the investigation of his contest against Hon. William S. Vare eye. in for a seat the United States Senate from said State. INTERMENT IN EUROPEAN CEMETERIES OF WORLD W A.R SOLDIERS .AND ADDITIONAL EXPENDI.TUR.E IN THE VARE-WILBON CONTEST MARINES FROM WEST VIRGINIA .Mr. SHORTRIDGE submitted the following resolution ( S. Res. [Mr. GOFF asked and obtained leave to have printed in the 156), which was referred to the Committee to Audit and Control RECORD a list of· World War soldiers, sailors, and marines from the Contingent Expenses of the Senate: the State of West Virginia who died on European battle fields in the World War and who e bodies are now interred in Euro Resolv ed, That the Committee on Privileges and Elections, authorized pean cemeteries. The list was printed in the CoNGRESSIONAL by resolution of December 17, 1927, to hear and determin-e the pending RECoRD of June 18, 1929, page 2845.] contest between Willia m S. Vare and William B. Wilson, invol~ng the right to membership in the United States Senate as a Senator from the EXECUTIVE MES SAG~ State of Pennsylvania, is hereby authorized to expend from the con Sundry messages in writing were communicated to the Senate Hngent ·fund of the Senate $12,000 in addition to the amounts heretofore from the President of the United States by 1\Ir. Hess, one of his l authorized for said purpose. secretaries. 1929 CONGRESSIONAL RECORD-SENATE 5375

REVISION OF THE TARIFF producers were caused not by the law of supply and demand in the The Senate, as in Committee of the Whole, resumed the con cotton-producing and cotton-consuming world but by conditions that sideration of the bill (H. R. 2667) to provide revenue, to regu existed on a stock exchange in New York City; and late commerce with foreign countries, to encourage the indus Whereas the cotton exchanges have publicly admitted in their reports tries of the United States, to protect American labor, and for each day for several days that the depression of cotton prices and the loss to cotton farmers were caused by what took place on another kind other purposes. The VICE PRESIDEJ\'T. The question is on agreeing to the of exchange, the stock exchange in New York City; and amendment of the Senator from Nebraska [Mr. NoRRIS] to the Whereas the cotton exchanges have in their daily reports practically admitted their inability to resist the in1luence of speculation on the amendment of the committee, which the clerk will report. ' stock exchange and in spite of it to reflect and register prices for The CHIEF CLERK. On page 107, paragmph 372, in line 2, in the committee amendment where the committee proposes to cotton that are justified by the law of supply and demand; and strike out "30 per cent" and insert "35 per cent," the Senator Whereas there is no way of telling just how long this " speculative spree " now going on in the New York Stock Excha nge will continue, from Nebraska moves to strike out "35 per cent'.' and insert to the great financial injury of the cotton producers of the United "25 per cent," so as to read : States; and All other machines, finished or unfinished, not specially provided for, Whereas American cotton producers are now in the midst of the 25 per cent ad valorem. cotton-selling season, and in order that they may market their cotton The amendment to the amendment was agreed to. to the best advantage, so as to receive prices that will yield them a The amendment as amended was agreed to. fair profit, it is necessary that every in1luence and agency that is being . The VICE PRESIDENT. The next amendment will be used to hamper and depress the price of cotton be immediately sup- : stated. pressed ; and The next amendment was, on page 107, paragraph 372, in Whereas the Federal Farm Board has declared that the present price line 3, after the word "parts," to insert the words ·~not specially of cotton is low and unprofitable and that all the facts in the cotton provided for," so as to read: tt·ade demand and justify higher prices for American cotton; and Whereas the cotton exchanges' daily reports show that it is not the , Provided, That parts, not specially provided for, wholly or in chief iaw of supply and demand that fixes the price of cotton on the cotton value of metal, etc. exchange but that it is done by manipulation and by speculation in The amendment was · agreed to. stocks on the stock exchange ; and The VICE PRESIDENT. The clerk will state the next Whereas as a result of the depressing, demoralizing. and harmful amendment. conditions here set fClrth the cotton exchanges as operated to-day and The CHIEF CLEEK, On page 107, line 4, after the word in1luenced by the stock exchange are hurtful and disa trous to the cottoa "metal," insert the words "or po·rcelain," so as to make the producers of the United States; and proviso read : Whereas in order to give the Federal F.arm Board a fair chance and , a free band in preventing fluctuation and in stabilizing cotton prices Provided, That parts, not specially provided for, wholly or in chief value of metal or porcelain, of any of the foregoing, shall be dutiable at immediately for the purpose of enabling the cotton farmers of the the same rate of duty as the articles of which they are parts. United States in the daily sales of their cotton to obtain a price that . will yield them a profit : Therefore be it SPECULATIVE TRANSACTIONS IN COTTON Resolved, That the Federal Farm Board is hereby authorized and 1\Ir. HEFLIN. 1\fr .. President, I send to the desk a resolu- directed to immediately investigate all the matters set out in the pre tion, which I ask to have read. amble of this resolution and investigate the activitiE>s and speculative The VICE PRESIDENT. The clerk will read the resolution. transactions of the New York, New Orleans, and Chicago Cotton Ex The Chief Clerk read the resolution ( S. Res. 152), as follows: changes, and other intere ts engaged in any way in the cotton business, Whereas the Government report shows that the average price paid and report its findings to the Senate on the 2d day of December, 1929; and be it further for American cotton for the last 10 years bas been above 21 cents a pound; and Resolved, That the Federal Farm Board is hereby authorized and · Whereas the world cotton crop in 1928 was 23,000,000 bales and the directed to summon witnesses to Washington and compel their attend world consumption of cotton for the same year up to August, 1929, was ance for the purposes of this investigation, and that the Federal Farm 25,000,000 bales, showing that the con umption of cotton was running Board shall, if it desires, have the assistance of the Senate Committee far ahead of cotton production ; and on Agriculture and Forestry, and the Federal Farm Board is hereby Whereas complaint is being made by cotton farmers, merchants, and requested to say specifically in its report to the Senate whether or not bankers in the cotton-growing States and by people in other sections it feels, from all the facts obtained in its investigation, that the cotton · ot the country interested in cotton that something is wrong with the exchanges as operated to-day and influenced by stock-exchange transac tions should be closed ; and said board is hereby directed to make any cotton market, and that the price is being depressed and fixed by purely recommendations in its report to the Senate on the 2d day of December spt-culative forces, and that cotton is selling not only at unprofitable that it feels would be helpful in correcting the evils complained of and prices but below the cost of production, to the great burt and injury of in obtaining for the cotton producers of the United States profitable cotton producers of the United States ; and prices for their cotton. Whereas the price paid each day for cotton in the towns and cities and in all the places where cotton is sold in the cotton-growing States, Mr: HEFLIN. 1\ir. President, I ask unanimous consent for is the price that is fixed on the cotton exchange where speculation in the present consideration of tbe resolution. Tbe situation is " cotton futures " and not where the sale and delivery of actual cotton indeed grave in the cotton-growing States, where cotton is now fixes the price under the law of supply and demand; and selling below the cost of production. The exchanges practically Whereas the advocates of a speculative cotton exchange where unlim every day report that the break in the price is the result of the ited quantities of cotton futures can .be sold, have contended that such speculation on the stoc·k exchange. I submit to the Senate that an institution would positively and accurately re1lect the price of actual it is unfair to the great cotton-producing class of our country cotton justi1led by the law of supply and demand; and to permit the exchanges handling unlimited quantities of ficti Whereas the advocates of such speculative cotton exchanges have tious stuff which is called cotton to hammer down the price of claimed that i:bey are not and can not be manipulated or controlled. by actual cotton. The Government has appropriated $500,000,000 influences~ other than those natural in1luences produced by the law of to aid the farmers, the Government through the Farm Board is supply and demand ; and seeking to do that, and yet when the board has announced pub · Whereas Government officials of the United States, the Federal Farm licly that cotton is · below the cost of production anu should be Board, whose duty it is w know what amount of American cotton is bringing a higher price, the exchange is hammering down the produced, exported, and consumed annually at home and abroad, and price of cotton. The battle is on between the Government agency ·the amount of the carry-over of American cotton at the end of each and this gambling institution that is beating to death the price cotton season, have recently declared in a public statement that in of cotton to-day. Let me read a report from the cotton ex view of the increased consumption of and the increased demand for change of yesterday which appeared in the Washington Evening American cotton and cotton goods, the decreased number of bales in the Star: carry-over of American cotton for the previous year, and the production NEW YORK, November 8 (Special) .-With a Government crop estimated of a cotton crop this year not large enough to supply the world's de around 15,000,000 bales, which was about trade expectations, the cotton mand for American cotton that the price of cotton is too low and that market to-day continued its nervous, irregular 1luctuation which devel the cotton farmer is entitled under the law of supply and dE:>mand to oped yesterday and ended with a gain of about $1 a bale. receive a higher price; and December approaching the 17-cent level in New York, which is ap Whereas in recent weeks the cotton exchanges whet·e cotton prices proximately within striking distance of prices of southern markets at have been unstable and fluctuation in the price of cotton has been which the farm boards will advance loans to members of cooperative the order of the day, the daily press reports ots -were advanced 2a ~ us that the break in the price and the losses sustained by the cotton points to 17.60. 5376 CONGRESSIONAL RECORD-· SENATE NOVEMBER 9

i to be. Surely no friend of the cotton producers is going to Open High Low Close object to it. .. The VICE PRESIDENT. The resolution will go over. December ___ ------17.35 17.43 17.12 17.37 Mr. HEFLIN's resolution. (S. Res. 152), as modified by him J anua.ry __ :. ------__ ------17.53 17.53 17.24 17.49 (there being no change in the preamble), is as follows : March.------___ ------_---.------_ 17.80 17.84 17.53 17.78 May--·_------ 18.07 18.13 17. 81 18.06 Resolved, That the Federal Farm Board is hereby authorized and July------18.20 18.22 17.94 18.18 directed to immediately investigate all the matters set out in the pre 1 18.25 18.30 18.10 18.26 1 October----_------amble of this resolution and investigate the activities and speculative ______.!.. ___!...._ __ ....!,_ __ __.!. ___ • transactions of the New York, New Orleans, and Chicago Cotton Ex- Mr. President, it is plain to me, and I think it is plain to changes, and other interests engaged in any way in the cotton business, most Senators who are acquainted with the cotton situation, and report its findings to the Senate on the 2d day of December, that the exchange is battling each day to hold the price of cotton 1929; and be it further , right around the point at· which the Government has said, Resolved, That the Committee on Agriculture and Forestry is hereby · through the Federal Farm Board, it would loan for the purpose authorized to assist the Federal Farm Board in said investigation, and of lifting the cotton prices still higher. My resolution suggests the Federal Farm Board is hereby requested ·to say specifically. in its that the Federal Farm Board immediately investigate the situa- report to the Senate whether or not it feels from all the facts obtained tion and report back to the Senate on the 2d day of Decelliber. in its investigation that the cotton exchanges, as operated to-dn.y and The matter is so very important that I trust no Senator will in:tluenced by stock-eichange transactions, should be closed, and said object to the resolution but that we shall adopt it and let the board is hereby directed to make any recommendations in its report to Federal Farm Board start to making its investigation. the Senate on the 2d day of December that it feels would be helpful in Mr. JONES. Mr. President, the resolution submitted by the correcting the evils complained of and in obtaining for the cotton pro Senator fro.m .Alabama is very long. I knew nothing alYJut it ducers of the United States profitable prices for their cotton. until it was read. It involves · a matter of very considerable REVISION oF THE TARIFF importance; I appreciate that; but I myself think that the The Senate, as ~n Qommittee of the Whole, resumed the con- resolution ought to be considered by the .Agricultural Committee, sideration of the bill (H. R. 2667) to provide revenue, to regu and I ask that it go over, anyway, until Monday. ~ late commerce with foreign countries, to encourage the indus- Mr. NORRIS. Mr. President, will the Senator from .Alabama tries of the United States, to protect .American labor, and for permit an interruption? other purposes. Mr. HEFLIN. I will. Mr. NORRIS. Mr. President, there seems to be a misunder- Mr. NORRIS. I have heard the resolution read, · and 1 wish standing about the vote which w~ have taken ,on my amend7 · to make a suggestion to the Senator from .Alabama. The reso- ment to reduce the rate in th~ basket clause, and the amend lution provides that the Farm Board shall have the power to rnent having been adopted without a roll call. It seems that summon witnesses, and SO forth. I should like to suggest to the some Senators who are not present this morning had an under Senator that, this being a Senate resolution and not a joint standing that there was to be a roll call on the question of resolution, we can not by means of a Senate resolution· con~er adopting the amendment. That being true, it appears to me such authority upon the board. I am not mentioning this in any spirit of animosity to the resolution which the Senator from that there ought to be no objection to a reconsideration of the .Alabama is t.....,.ing to have adopted, but rather to call hi& atten- vote by which the amendment was adopted, so that there may 4 ., be a yea-and-nay vote on 'the amendment to the amendment. tion -to what is to me perfectly apparent, that he is undertaking I have suggested to those Senators who wanted . to have t4at in a Senate resolution to do something that we have not the course pursued that I doubt the wisdom of. doing it this morn authority to do. ing when there are absent for the day so many Senators on Mr. HEFLIN. The Senator refers to that portion of the reso- both sides of the question who want to be recorded when a . lution· which provides that the Federal Farm Board may sum- yea-and-nay vote shall be ~en, and I have suggested to those mon witnesses and compel their attendance? Senators that, so far as I am concerned, I have no objection ~ Mr. NORRIS. Yes. to a reconsideration of the vote on Monday and then to having 1 Mr. HEFLIN. The Senate took similar action in ·investi- a roll call on it. gating the Sinclair case. Mr. REED. Mr. President, I think the Senator's suggestion Mr. NORRIS. Oh, yes; but that was a Senate committee. We · is very fair, and that it is better to wait until Monday, when can not confer upon an outside organization by a: &mple the absentees on both sides of the Chamber will have returned, Senate resolution authority that would have to be conferred and in pursuance of the Senator's suggestion I will move a by law. reconsideration on Monday, unless he wishes to do so-one of Mr. HEFLIN. We can instruct them to make the investi- us can do it-and we will have a roll call forthwith. gation. Mr. BARKLEY. Mr. President, in this connection I sug.. Mr. NORRIS. Oh, yes. gest that, Monday being .Armistice Day, there may be more Mr. HEFLIN. I will change the resolution in that regard. absentees than there are to-day. Let me give notice, Mr. President, that on Monday morning, if Mr. NORRIS. Jf that be so, we ought to let it go over for we shall meet on Monday, I am going to call this resolutiqn another day, say, until Tuesday. It is my understanding that' up and try to get action on it; and I want to modify it now the Senators who want this action taken do not desire to re by striking out the language which has to do with summoning open the debate. witnesses, and so forth. . Mr. REED. Not at all. The VICE PRESIDENT. The Senator can modify his resolu- 1\ir. NORRIS. But they want to have a record vote, and tion. Let him send the modification to the desk so that the it seems to me that is fair. Secretary will have it correctly. Mr. President, I should like the attention for a few moment's Mr. JONES. Mr. President, may I suggest to the Senator of Senators on both sides of the tariff controversy. I want to that in the meantime he examine the resolution very carefully? call attention to a condition that every Senator, regardless of My recollection is that there are one or two other places in the how he feels about the tariff bill, would, I think, like to remedy. : resolution, as I heard it read, which go beyond the authority of It is quite apparent from the articles on exhibition in Mr. . the Senate itself along the lines suggested by the Senator from Grundy's " Piggly Wiggly store " here that some enormous and Nebraska. By a simple resolution adopted by the Sen~te we unconscionable profits are being made at the expense of con can not authorize any governmental body to do anything which sumers of the United States. This is no exception; it has been. to enable it to do will require legislation by Congress. So I sug- so in the case of other tariff bills; it has been so all the time; gest to the Senator that he look over the resolution very care- but it seems to me that such a condition occurs when the im fully, especially in that respect. . porters of articles have an understanding, or at least a gentle- Mr. HEFLIN. I will do so, and I will have the resolution man's agreement, with those who manufacture the same arti- modified and ready for action on Monday morning. cles in the United States, if they are manufactured here, for in Mr. JONES. I should like also to suggest to the Senator no other way could the prices be raised to the enormous levels that he might get action on the resolution by having it referred to which they are raised and involving the tremendous profits to the Committee on .Agriculture and Forestry, which is espe- which are derived. cially familiar with matters of this kind a~d which could act I have prepared an amendment which I am going to ask may very promptly as a committee. I merely make that suggestion. be printed in the usual form, lie on the table, and be printed Mr. HEFLIN. I merely wish to say that it takes some time also in the RECOB.D. The amendment aims to remedy that situa to get meetings of committees and thresh questions out, espe- tion. It is offered in no controversial spirit. The. thing I am cially now when the Senate is in session all the time. This mat- trying to do I know will appeal to all, no matter what indi ter is so important that it ought to be acted on at ~mce, and I do vidual Senators think about the tariff or whether they want the not think there will be any objection to it; there ought not rates in~~sed or lowered. 1929 CONGRESSION-AL RECORD-SEN.ATE 5377.- The figures embodied in the amendment are tentative. The A German violin rises in value from· $7.50 to $50 and a brass amendment has been prepared by me without very much con horn from Bohemia from $5.88 to $25. sultation with anybody as to its details, and there may be many A German spark plug is worth 11 cents until it reaches the imperfections in it, and perha})S it will not work. I am offering United States of America ; then it costs $1. I it for honest, constructive criticism. If we can put such a provi- A German razor advances in price from 57 cents to $5, and 1sion in the law and if we can make it effective, I am satisfied so on. lit will receive the approval of all Senators, regardless of their Certainly it proves that labor is cheaper in other countries ~ tariff theories. . than here, and I want to call attention to the fact that it is this Mr. President, I ask that the amendment be printed and lie cheap labor that the American farmer must compete with; that· .on the table, and that the clerk may read it for the information farmer who produces wheat, pork, or cotton, the great Ameri Iof Sen a tors. . can staples, that are sold at world prices. It is also the people The VICE PRESIDENT. The amendment will be read for who receive·these low wages who ·buy and consume the export I the information of the Senate. able surplus from the American farms. Maybe their market The Chief Clerk read as follows : should be broadened instead of narrowed. On page 242, after line 20, insert the following : The American farmer must sell 75 per cent of his products at the low world prices in competition with this very labor. The PAR. 1560. In addition to the rates of duty which· are prescribed In manufacturer complains because he has only something over 97 the schedules and paragraphs Of the dutiable list mentioned in this act, there shall be levied, collected, and paid an additional tax upon all such per cent of the American market. . .articles of 99 per cent of the amount by which the retail price of an:9 _ Two standards prevail; one for the manufacturer · and the, such article is in excess of the imported price, plus the duty paid other for the farmer. The manufacturer, whose advocates arc ' thereon, plus freight and insurance charges, plus 25 per cent. so numerous in the Senate, show no modesty when they are ask It shall be the duty of every person importing into the United States ing the consumer, including the farmer, to pay additional tax, any of the articles mentioned in this act and selling the same to any in order that they may have additional profits. othet· person, firm, or corporation (other than sales at retail) to furnish They are losing 2 or 3 per cent of the sales in the American to the purchaser at any such sale a true statement of the imported market, and they are seeking an embargo on imwrtations. This price of such article or articles and the duty, freight, and insurance would permit them to raise their prices to their heart's desire. ~barges pltld thereon, and any such purchaser making a subsequent sale They want no competition. ()f any such article (except sales at retail) shall likewise give to the Agriculture must be put on a parity with others, or agricul- purchaser the imported price of such article and the amount of duty, ture can not continue to support ever-increasing rates. · freight, . and insurance charges paid thereon. The Secretary of the We are reminded that agriculture gets some indirect benefits Treasury shall make such rules and regulations as he may deem advis from the development of the manufacturing industry, but the able for the purpose of collecting the tax provided tor under this section, fact is overlooked that the manufacturing industry gets the 'and all persons selling any such articles at retail shall keep an accurate greater benents from its sales to the great agricultural section. ,account of the amount of the tax, if any, that is due to the United By impoverishing agriculture industry will suffer. The farmer !States by virtue of any such retail sale, and pay the same to the United constitutes about 30 per cent of the population and is now 'States under such rules and regulations and at such times as the Secre reduced to about 7 p·er cent of the Nation's earnings. Why !tary of the Treasury may by general rule and regulation provide. should they contribute more at this time to those who are more Any person who violates any. of the provisions of this paragraph, or. fortunate than themselves? :any importer or subsequent owner of such property imported into tile Mr. HOWELL. .MJ;. President, the able Senator from South i United States, who shall fall or .neglect to furnish the information to Dakota [Mr. NoRBECK] has called .attention to the cheap labor lpurchasers of such imported articles (except purchasers at retail), as is with which the American farmer must compete ; and yet it does I provided for in tllilil paragraph, or any person selling any of such articles not seem to be fully realized that that labor, producing agri at retail who fails to keep an accurate account of the amount of money, cultural prOducts in western Europe, receives more for its prod-, ·if any, due on· account of such sales to the United States, or any of said ucts than the farmer here in the United States. ,persons who in any other way violates any of the provisions of this That is the situation which confronts our agriculture. For paragraph, shall be deemed guilty of a misdemeanor, and for each every bushel of wheat raised in western Europe the peasant offense shall be punished by a fine of not less than $500 nor more than receives about 30 cents a bushel more than the American farmer $5,000, or by imprisonment of not less than three months and not more for· the same grade of wheat at l\!issouri' River points. than two years, or by both such fine_ and imprisonment. Mr. SHORTRIDGE. Mr. President, may I ask the Senator a question? The PRESIDING OFFICER (Mr. FEss in the chair). The The PRESIDING OFFICER. Does the Senator from Ne amendment will be printed and lie on the table. braska yield to the Senator from California? Mr. NORBECK. 1\lr. President, reference has again been Mr. HOWELL. Certainly. made to the exhibit on the table recently installed in the Senate Mr. SHORTRIDGE. Assuming that to be true, what is the . Chamber. This table is referred to as the "Grundy exhibit," or remedy? 1 the "Grundy Piggly Wiggly store." Scores of articles are Mr. NORRIS. Debenture. 1shown, including textiles, glassware, crockery, and hand toois:- Mr. SHORTRIDGE. What is the remedy? all manufactured in Europe and sold ln this country. Mr. HOWELL. The debenture plan is the remedy we now Day before yesterday the Senator from Pennsylvania [Mr. propose. ··REED] had placed in the RECORD lengthy explanations of the Mr. SHORTRIDGE. If a tariff here is needed, is not a tariff ! difference in cost of these goods here and abroad. He covered needed for all agricultural products, and may we not give that 103 exhibits, running from bird cages to dog muzzles. This remedy? exhibit includes toys as well as useful articles, musical instru Mr. HOWELL. The suggestion is that the tari..ti alone may ments, spinach seed, and brierwood pipes. I am considerably at equalize agriculture, but that is impossible. You can make the a loss to understand his purpose, though it may have been to tariff on wheat twice as high as it is, and it will not correct the call attention to the fact that the importer was making a large situation unless you enact in conjunction therewith something profit on these 'imports, which are less than 3 per cent of the like the debenture plan we have included in this tariff bill. In American goods sold. Three per cent of the business was get order that we may make the tariff on wheat effective, .it is ting away from somebody, and it seemed to be a very profitable necessary to have something more than a mere provision for an business. · adequate tariff rate. I am not so much interested in who levies tribute on us as to Mr. SHORTRIDGE. Then the Senator's thought is that a :know the size of the tribute, .and I think the Senator from tariff can not be made effective when dealing with an article of 1 Pennsylvania rendered a real service by calling attention to the which there is a sui-plus? Is that the thought? . difference in the cost of production here and abroad. We are 1\fr. HOWELL. That is recognized-that where there is a reminded that a pewter bowl that cost $5.34 in Denmark sells surplus, in such a case the tariff will not be effective unless- at $29 in the American market. A vacuum cleaner from Sweden Mr. SHORTRIDGE. I see the Senator's theory. cost $13.67 and sells here for $77. Glass buttons from Czecho Mr. HOWELL. . Therefore if we are to do something for the slovakia that cost 7:14 cents are sold here for 79 cents. Lace farmer we must not merely give him an adequate tariff, where trimmed and embroidered scarfs that cost $2 in Germany sell he is raising a surplus, but we must afford him something addi :In this country for $10.50. tional to render it effective; and that is what we have provided In France the brier pipe costs 12 cents ; here the same pipe the debenture for. If dnyone has a better plan, he is at liberty sells for $1. Spain gets 74 cents for 16 cakes of Castile soap to suggest it-we invite him to suggest it-but no one has sug that is worth $2.34 here. England· sells its steamer rugs Jtt gested a better plan in connection with this bill, and yet we are $3.81 that.are retailed here at $14.89. An earthenware set fro.m confronted with the statement that this bill never will be Germany costs $1.82 in that colintry and·was sold here at $7.95. accepted with the debenture-in other words, that the farmer 5378 CONGRESSIONAL RECORD-SENATE NOVEMBER 9 can expect nothing from this tari1f bill so far as his products tory, of the great manufacturing sections of our country, as well are concerned where surpluses are produced. as the prosperity of the mining industry, is beneficial directly to Mr. KEAN. MI'. President,. will the Senator yield 1 the agricultural producers. The PRESIDING OFFICER. Does the Senator from Ne The city is the market for the farm. Conversely, the farm braska yield to the Senator from New Jersey? is the market for the city. I do not think that agriculture is as Mr. HOWELL. I yield. sisted or helped by tearing down or to any degree impairing the Mr. KEAN. If .these rates are cut down, which is. going to prosperity of the great manufacturing and mining consuming interfere with the wages of American labor, is not that going market of the farmer. Therefore I do think that under a wisely to interfere with the consumption of 80 per cent· of the. farm adjusted tarifr bill we ean equalize and make all our people products of the United States 1 prosperous. I do not think that the debenture will achieve that Mr. HOWELL. Mr. President, that is constantly suggested much-desired result. that it is necessary, for instance, that the producer of window Mr. HOWELL. Is there any method in the Senator's mind glass in the United States shall receive therefor about $5.08 a by which it can be done? box when the producer in Belgium is receiving $2.48 a box. It Mr. SHORTRIDGE. I have just indicated that by a wisely is urged that the farmer must necessarily submit to this; and adjusted tariff. having regard to all the industries, that can yet the Belgian peasant gets 30 cents a bushel more for his be accomplished. I do not like the phrase that differentiates wheat of the same grade than is obtained by American farmers "agriculture" and the "industries," as though they stood apart at Missouri River points. That is true also of corn and that is and hostile. The greatest, or one of the greatest, industries true of oats. of the Nation is agriculture-agriculture in all its phase&-in the Of course, the difference in each case is not the same ; but widest sense. There is mining; that is a great industry. Indeed, take corn, for instance. Corn is produced in Italy. There is a 53 per cent of the transportation tonnage of the railroads of this corn market at Milan; and the corn farmer in Italy during the country comes from the mining industry. There is the great last three years has been receiving about 25 per cent more for manufacturing industry. So that, not to multiply words, there cash corn than the average price at Chicago, yet the American is the agricultural industry, the great mining industry, the rfarmer has to pay the equivalent of our excessive tariffs on great manufacturing industry. They are not hostile. They 1 whatever he buys. . are interdependent and interrelated. The prosperity of the one Mr. SHORTRIDGE. Mr. President, may I interrupt the fiows over to the other. l Sena tor again? Mr. HOWELL. How would the Senator equalize so far as ' The PRESIDING OFFICER. Does the Senator from Ne wheat is concerned? ) braska further yield to the Senator from California? Mr. SHORTRIDGE. Just a moment. The price of wheat, Mr. HOWELL. Certainly. where it is fixed, whether by stock exchanges or speculation or Mr. SHORTRIDGE. Why not remove all tariff duties and by freight rates or other facts, of course, that is a difficult 'let the foreign manufactured products fiow in 1 Why is not that question to deal with. It may be that the Senator from Ithe remedy for the benefit of agriculture? . Nebraska has a solution. It may be that the Senator from Iowa Mr. HOWELL. Mr. President, the question asked in this [Mr. BROOKHART] has a workable plan. • case ·strikes right at the heart of the tariff. I believe in protec But the Senator's plan, as I understand it, is simply the , tion when you have something to protect; and we have some debenture. I ask him whether he thinks a direct bounty might . thing to protect in this country. We have great natural re achieve the desired result, harking back to the proposal of a l sources--greater per inhabitant tha~ any European country. bounty in connection with the McKinley bill, it will be remem ' So far as efficiency in manufacturing is concerned, we hnve a bered that Representative Joseph McKenna, afterwards circuit .greater degree than is general in Europe. These things we judge, afterwards a Justice of the Supreme Court of the United I. have that we can protect; but when we protect one class beyond States, :filed a dissenting report opposing the bounty which i a certain point and fail to afford adequate protection for an was placed upon sugar at that time in lieu of a tariff. It Iother, then what results? We are building up a civilization was claimed that a tariff could not benefit the American sugar, 1 based upon -the submergence of a class. producers, for reasons then assigned. It has been suggested, and suggested more than once, " If we . Mr. HOWELL. Then, would the Senator propose a bounty 1 give equal protection to everybody, why protection for any on wheat? ! body?" The advantage in. this country to-day to the indus- Mr. SHORTRIDGE. Not at all. 1 trialist is the fact that he receives protection out of all pro Mr. HOWELL. What would the Senator do for wheat? , portion to that afforded the American farmer, while the latter, Mr. SHORTRIDGE. Wheat will get along all right, and the I constituting about 30 per cent of our population, is obtaining farmer· will get along all right without bounty or debenture. I less for his products than labor· in Europe producing the same The farmer is not starving in America. The farmer is not a products, and still the farmer must pay our enormous tariff peasant in America. : rates upon the goods he purchases. Mr. HOWELL. Does the Senator think it is fair and right If we are to protect the farmer, we must do something that the farmer in this country at Missouri River points should l more than merely raise his tariff rates. We must prevent the receive 30 cents a bushel less for his wheat than the peasant , tariff rates for industry being raised beyond a comparable in western Europe receives for his? , point, and then must have something additional to render the Mr. SHORTRIDGE. I do not, of course. farmer's tariff ·rates effective. Are you willing to do it? Mr. HOWELL. How would the Senator correct the situation? Mr. SHORTRIDGE. Mr. President, answering that question, Mr. SHORTRIDGE. How does the Senator account for the I am willing to do it; but I do not wish to break into the price of wheat in Europe? Assuming, now, what the Senator Senator's argument other than to ask him another question. says to be accurate, how does the Senator account for the The Senator thinks that the debenture plan is wise economi~ally. pric~ of wheat in Europe? I will ask him if he thinks it is equivalent to the old-time Mr. HOWELL. The price of wheat in Europe is based upon bounty system, or iB equivalent to the bounty which was pro- the cost of production. posed in the McKinley tariff bill? Does he think that a spe-. Mr. SHORTRIDGE. Certainly. cific bounty should be given? Mr. HOWELL. It is based upon the cost of production in Mr. HOWELL. Mr. President, the whole tariff system in Europe, with wages such as are paid, and corresponding to the volves nothing but a bounty. When the American farmer has wages the Senator is talking about in connection with the to pay in this country for the window glass he uses to make articles upon the table here in the corner of the Senate. good the shattered panes in his home, 100 per cent more for Mr. SHORTRIDGE. That is true. that windqw glass than the price for which that window glass Mr. HOWELL. But on that basis, the farmer across the can be purchased in Europe, the additional 100 per cent he pays water receives 30 cents a bushel more than the farmer at is a bounty, pure and simple. Therefore, as we are paying to Missouri River points in the United States. What does the the industrialists such bounties upon their products, we must Senator think about the American farmer and the wages he also pay the farmer a corresponding bounty on his products, and must accept for his production here? if it can not be done by the tariff method then we must invent Mr. SHORTRIDGE. That question does not call for any another method to accomplish the result. That is what we answer. I agree with the Senator that there seems to be a have attempted to do, and what we have invented is the deben disparity, but I am asking him how he accounts for the price ture plan. I would ask the Senator from California if be has of wheat in Europe. any other plan than the debenture plan for rendering the farm Mr. HOWELL. Mr. President, when we present a concrete ers' tariff effective in those cases where he raises a surplus? example, as in the case of wheat, we find that those opposed Mr. SHORTRIDGE. Mr. President, I think there is a way, to the debenture plan have no plan whereby to relieve the and hereafter I will state my views. I think the learned Sena farmer or to afford equality. tor and many others overlook the fact, when dealing with this Mr. NORBECK. Mr. President, will the Senator yield? question, that the prosperity of the city, of the mill, of the fac- Mr. HOWELL. I yield. 1929 CONGRESSION.A_L RECORD-SENATE 5379 Mr. NORBECK. 1\Iay I call the Senator's attention to the heartened at the results which have been achieved in the open fact that the Senator from California has stated that he believed discussions in this Chamber I am sorry for them. Their situa agricultural equality could be brought about by a properly ad- tion is the result of a consensus of majority opinion in this body justed tariff. He has just written such a tariff bill, and it is and we think that consensus meets a ready response throughout before us; so the answer is here. the country. Mr. SHORTRIDGE. The Senator gives me too much credit. The bill as passed by the House, owing to a crystalization of I did not write that bill. I agree with a great many of its public sentiment in the country, has been already condemned. items, but the Senator will do me the kindness to recall that I We owe it as a duty to the country, not only to expose those have several amendments pending to the bill, and nearly every things which have been discussed in connection with the bill but one of them, let me say, applies to agriculture. It is true that we owe it to the country further to discuss matters in the bill I want soon to bring up, if not to-day, early next week, a sug- which have not yet been brought to the attention of the public. gested amendment to the bill as reported, asking for additional I know the Senators representing the Republican majority and needed protection for a mining product, namely, tungsten. would like to escape the disclosures which that discussion will Mr. NORBECK. That ought to be helpful to agriculture. inevitably bring. Mr. SHORTRIDGE. I think so. May I just say, if the Sena- But, Mr. President, I think we owe it to the American people tor from Nebraska will excuse me-- not only to see that the bill is not referred back to a committee Mr. HOWELL. I yield the floor. to be re-formed in secret, but we owe it to them that the bill Mr. SHORTRIDGE. I do not wish to assume the floor, but I shall be kept before this body until there is action upon it after merely wish to answer the suggestion of my friend from South there has been due deiiberation and discussion, and not before. Dakota, for my information is that there are deposits of tungsten If Senators represent~ng the proponents of the bill are not will in South Dakota. ing to enter into that discussion then we shall have it among 1\Ir. NORBECK. There are deposits of tungsten in South ourselves for the enlightenment of the American people. Dakota that were worked profitably dming the war, that is Mr. BORAH. Mr. President-- true. With an excessively high tariff they could dig out some The PRESIDING OFFICER. Does the Senator from North more. Carolina yield to the Senator from Idaho? Mr. SHORTRIDGE. All I want is 5 cents more on the ore, Mr. BORAH. I thought the Senator bad concluded. and certain other additions, and I hope the Senator will join me. Mr. SIMMONS. I yield to the Senator from Idaho. Mr. NORBECK. The Senator bas a remedy for tungsten, but Mr. BORAH. Mr. President, I simply want to say that it does be bas none for wheat. not seem to me that the suggestion of the Senator from Utah 1\fT. SHORTRIDGE. I will get a remedy that will make [Mr. SMOOT] is practical. Even if we had a substitute bill here everybody happy. I do not think that we would be able to make progress upon it Mr. SMOOT. Mr. President, I ask unanimous consent that more rapidly or speedily than we are making upon the bill now when the Senate concludes its business to-day it take a recess before us. But I do want to say, as I intimated a few days until 10 o'clock Monday morning. ago, that those whom some are disposed to term " the coalition " The PRESIDING OFFICER. Is there objection to the re- are really now in charge of the making of the bill. The re quest of the Senator from Utah? The Chair hears none, and it sponsibility is upon us. What the country wants, in my judg is so ordered. ment, is speed. They have pretty well made up their minds as Mr. SMOOT. 1\fr. President, I just want to make a statement. · to the bill, general1y speaking. In my judgment, it is incum I bad some hope of securing the passage of this bill before the bent upon us to dispose of the bill as rapidly as we can, taking opening of the regular session of the Congress in December. into consideration, of course, that there are some items which Evidently, if the past actions of the Senate in regard to the bill necessarily must be discussed. If we do not do so we will be are to be taken into consideration, it is perfectly useless to held responsible from this time on for the delay. We can not think of that result. escape that responsibility. I would like to see some action taken, and, as one, I am per- I am satisfied that the discussion in the Chamber, with the fectly willing that the Senate shall take a recess to-day until possible exception of that relating perhaps to three or four items, the 20th of the month, and in the meantime let the coalition will not change any votes. We have been considering the bill examine the amendments proposed and report to the Senate for weeks and months, when we take into consideration the long whatever amendments they agree upon, and after the bill is summer of discussion. Senators have made up their minds. taken up, let a vote be taken upon the amendments without a They are well informed as to what they wish to do. As to par- word of discussion, and let us pass the bill. ticular items, outside of perhaps a half a dozen, I think it is 1\fr. Sll\!1\/fONS and Mr. BARKLEY addressed the Chair. safe to say that Senators now are pretty well concluded as to The PRESIDING OFFICER. Does the Senator from Utah how they wish to dispose of the bill. That is what we ought yield ; and if so, to whom? to do. 1\fr. SMOOT. I yield to the Senator from North Carolina. I do not want to see the bill fail. '.rbere are some provisions Mr. SIMMONS. Mr. President, the Senator submits that as in the bill which I deem of vital moment to the American a proposal? people. I know that there is very radical difference of opinion Mr. SMOOT. Yes; that is what I would like to see done. in the Chamber upon some of the provisions, but if by our Mr. SIMMONS. I want to say emphatically that I do not inaction or by our delay or by our inability to take care of accept the proposition. the situation we should lose some of the provisions which we Mr. SMOOT. I thought the Senator would not. have placed in the bill, I think we would be doing a substan- Mr. SIMMONS. We do not propose at this stage to enter tial injury to the American people. into the remaking of the bill by a committee, but we propose Mr. President, I am deeply interested in rates, .but I am a1so to remake it, not in secret but in the open sessions of the deeply interested in the administrative features of the bill as Senate, in the presence of the American people, and where there they relate to certain relationships of the Executive and the is full opportunity on the part of every Senator in this body legislative body. We have been successful in putting into the to express his views in respect to each item of the b-ill. bill a provision relating to that matter. If we appreciate our The Senator proposes that we shall get together and make a responsibility, if we measure up to the faith which we have bill in a secret session of a committee composed of two ele- professed, we will so conduct ourselves as to try to preserve ments in the Senate whose minds happen to run together on that particularly important principle in the bill, and we can . this subject. The American people would not approve it if we only do so by speedily passing it on to those upon whom the should consent to any such proceeding as that, and they should responsibility will rest for the destroying of it, if it is destroyed. not. I trust, Mr. President, now that we have had these weeks of Enough has been said with respect to the character of the discussion, that we may proceed to devote our time rather to bill as it passed the House to arouse the deepest interest on voting than to debating. the part of the people of the country. For the first time, I Mr. SIMMONS. Mr. President, when I yielded to the Senator think, in tariff making, every section of the country and every from Idab0 a moment ago I had not quite completed what 1 class of people in the country have become deeply and personally I purposed to say, hut I am very glad that he interrupted me interested in the discussions that are going on here, with the and said what he did. result that for the. first time since I have had anything to do Mr. President, in addition to what I have already said I with tariff making the people of the country have learned what wish to state that what I desire and what I think this Chamber we are doing and what is proposed to be done by the different desires is that every Senator shall have an opportunity if he elements in this body who participate in these discussions and desires, to express himself with reference to every nme~dment these deliberations. reported by the committee and every paragraph in the pending These discussions are serving a splendid purpose. If the pro- bill that we may hereafter seek to modify or amend. I believe ponents of the bill, the so-called "regulars," have become dis- that there will be from now on but little discussion about most 5380 CONGRESS! ON AL RECORD-SENATE NOVEl\ffiER 9 , of the amendments not acted upon or which may hereafter be industries; but with the machinery which we have provided in proposed from the floor. this bill through the debenture scheme that will be possible; I think the Senator from Idaho is entirely right when he sayB and the fact that it will be possible is, t~ my mind, one of the !that most of the matters have been thoroughly thought out. most cheering things that has ever happened to that element of The Senate bas become interested in tariff revision as it has our people who are engaged in agriculture or who are interested never been interested in any tariff revision heretofore made. in agriculture. :All of us have been studying the amendments to the House pro Whereas heretofore a tariff rate imposed in many instances visions which have or have not been amended by the Senate has been of no value to the farmer whatever, but bas been as Finance Committee, and I think we have all about made up our ineffective as the paper rates which we put into the agricul minds as to how we want to vote. I believe there will be from tural emergency tariff act, with the debenture scheme in the now on, as the Senator from Idaho has indicated, but very little bill we can now fix tariff rates on agriculture which will be discussion with respect to the amendments. I think from now effective in giving the farmer protection against his foreign on we will make very rapid progress and that it is highly prob competitor. It is the greatest achievement in behalf of agricul able that we will be able to dispose of the amendments and act ture in the history of our tariff legislation. upon the bill before the termination of the extraordinary ses Now, however, what do we find? . We find Senators on the sion of Congress, which will, of course, automatically end at other side of the Chamber have devised a scheme which Mr. · the beginning of the next regular session. I hope we will be Tn.soN, the leader of the House of Representatives, disclosed in able to do so at least ; but we want to do .it not by suppressing a speech which he made the other day, by which, in the secret an expression of views and opinions. We want to do it in a way chamber of the committee of conference, this bill, carrying this which will give full oppor~nity of discussion. great scheme of relief to the farmer, shall be stifled and .Mr. President, we on this side of the Chamber are anxious to strangled to death. That is the scheme which Senators on the so re-form the bill as passed by the House that we may so per other side have in mind in the proposal which has been made fect the bill that we can vote. It is exceedingly important that by the chairman of the committee, the able senior Senator from we should have tariff legislation at the present session. What Utah. has alieady been accomplished in the way of amendments to Mr. President, what I have stated has already been accom the bill is of vast and almost inestimable importance to the plished for the farmer. Furthermore, we shall, when we reach country. There is the flexible tariff provision which has been the agricultural schedule, I hope impose such duties as, with the amended restoring to the representatives of the people their aid of the debenture, will put the farmer, if not entirely upon constitutional authority to make tariffs and to impose tariff a parity with other industries, at least approximately approach taxes, and denying in a way which can not be mistaken the the economic equality sought. I am satisfied we shall have the right under the Constitutiton of anybody except the representa votes to do that; I am satisfied we shall have enough votes to tives of the people in Congress to impose taxes upon them. write the agricultural schedule in such a way that, with the That is a great accomplishment. It is the more significant in help of the debenture which we have written into the bill, the view of the fact that we have retained in all its vigor the great rates provided will become effective ~nd give the farmer the fact-finding body which we established many years ago by the relief which he has sought and the relief which Senators on the acquiescence of both parties in the country. We have not only other side would take away from him by destroying that neces retained that organization, but we have safeguarded it against sary aid if he is to secure such relief. We propose to do that. the influences which have heretofore operated greatly to the In the paragraphs which have not already been acted upon , prejudice of the commission and to the undermining of public and in those to which amendments have not been reported by · confidence in the commission. the committee and to which therefore we can not under the At the same time, l\Ir. President, we have adopted a method rules at this stage offer amendments as they are reached, . by which the Congress of the United States can quickly act where the rates proposed in the bill are thought to be unjust upon tariff matters which may come before the commission or unfair to the consumers and to all the industries of the coun either by its voluntary action or upon the application of a tax try, we shall propose such amendments as will to some extent payer or upon the request emanating from the Congress. If modify the rates in the present law or the bill, and secure the the Congress at any time shall feel that there is some industry p·assage of a bill which will be very different from the bill 1 in the country which is entitled to a better-rate or some industry which the House of Representatives and the majority of the in the country which is receivillg a higher rate of tariff protec Senate Finance Committee have presented to us. tion than it is entitled to, the Congress may act itself merely With these changes, l\fr. President, namely, the amendment to by directing and requesting the Tariff Commission immediately the flexible tariff provision, the addition of the debenture as an to proceed to investigate that particular case and report to aid to agriculture, the imposition and modification of rates in Congress so that it may take up that item, and that item alone, the way I have indicated, the elimination of glaringly unjust qnd act upon it immediately. In other words, we have dis rates in the present law or in the bill, will so re-form the bill as placed that part of the old flexible-tariff system which per to make it reasonably satisfactory. Of course, we can not in mitted the President to make tariff duties and we have substi the short time allowed us remove all the crudities, inconsisten tuted the Congress ; but we have provided a method by which cies, and excesses of the bill or the present law. By the process Congress can act almost as quickly as the President wherever of revision which I have indicated, aided by the things that we such action may be required. That also is a great achieve have already done with respect to the administrative features, ment, and if nothing else shall be accomplished in the revision I believe we can make a bill which, if not entirely satisfactory, of the tariff laws, that in itself will justify the time which bas yet will be a bill which both sides of the Chamber can support. been taken by the Senate in its consideration of the bill. Of course, not with unanimity, but with such a majority as will But, Mr. President, we have gone further. We have added cheer the people of this country, who are anxious that some the debenture system. I maintain that by reason of circum thing shall be done that will be beneficial not only to one sec stances connected with agriculture, which I need not now de tion of the country, not only to one section of industry, but scribe because they are well understood by every Senator, the which will be of great benefit to every section of the country, to great majority of rates which we impose or may impose in this all the industries of the country, and especially to the forgotten bill fixing duties upon agricultural products will of necessity be consumers of the country. largely, if not totally, inoperative if we stop there. The idea Mr. President, we hope to be able to do that, and to do it in that we had when we projected the debenture scheme into this the open, to do it with as little delay as possible; and then in controversy was not that it was a self-acting instrumentality. conference we hope to be able to maintain and bring to prac It was not the idea that the debenture alone could help agri tical fruition the great work which we have accomplished in culture. this Chamber in behalf of the American people. The idea was-and it is fundamental-that the debenture was l\fr. President, when the bill gets into conference it may a mere agency, a mere instrument, to make effective tariff rates be-although I hope it will not-that the President may feel to which agriculture is entitled, but which, by reason of the justified in interfering, and that his alleged dominant influence conditions of agriculture not only in this country but in the with the other party to the conference may produce a deadlock, world, could not be and would not be operative unless assisted defeating, for the time being, all tariff legislation, and leaving, by some other agency than the mere rate imposed. We have as Mr. TILSON says, to the President the sole and exclusive therefore devised this scheme, which will enable us to deal with power, with the aid of the Tariff Commission, to change up or agriculture through the tariff in just as effective a way as here down the taxes that the representatives of the people in Con tofore we have been able to deal with the industries through gress have written, not in a few cases, but in a multitude of the tariff. cases, revising the tariff, as .M:r. TILSoN has indicated, by chang I myself, Mr. President, had despaired of Congress ever being ing such rates of the present law that it seems to him desirable able, however much it might be inclined to do justice to agri to change both in the agricultural and in the industrial sched culture through the tariff, to raise agriculture to anything like ules, and thus gather unto himself the power of radically modi· a parity or an economic equality through th~ tariff with the fying ~d reW!iting r~tes prescribed by the Congress. 1929 CONGRESSIONAL RECORD-SENATE 5381 Mr. President, if that shall happen, we can not help it; but that he " would prefer the present tariff law with its flexible pro we want to write this bill not in such a way as that when vision, whereby a wise President can give the rates industries need •• we go into conference we shall be confronted by the House with to the tariff bill as it now stands in the Senate. the statement, "After you bad disclosed that you controlled He condemned "a movement that is afoot to turn over the home the body you went off into a chamber and, through a . com markets to foreigners." mittee, wrote these rates and dumped them upon the Senate. House Leader TILSON, following Senator MosEs, said he expects the without an opportunity on the part of the Members of that body House to work out a tariti bill that will " get rid of some of the to consider and discuss them; you adopted them one after barnacles the Senate has put upon it," and then said, significantly, another without due consideration or discussion, and therefore "If not, we can retain some of the provisions of the present law." there has been no real expression. of the will of the Senate upon These New England business leaders are spending two days in the the -schedules except upon the amendments to the three S{'bed Capital making an intensive study of the foreign trade service avail ules which have already been acted upon." able to .American manufacturers at the Department of Commerce and Has not the Senator from Utah sufficient foresight, has he to demonstrate to their representatives in Congress and to the Fed not sufficient vision, and have not those who have proposed this eral departments that they are vitally interested in aggressively p·ro scheme sufficient vision to know that that would be the situa moting New England's foreign trade. The tour is under the auspices tion; that it would embarrass and hamper and handicap and oi' the New England Export Club, of the Boston Chamber of Commerce, in cooperation with the New England office of the Federal Bureau of hog tie the conferees on the part of this body to go lnto a I committee of conference with a bill that had been in large part Foreign and Domestic Commerce and the Associated Industries of framed and then passed as it would be implied we had done Massachusetts. if the suggestion of the Senator from Utah should be ad"!')ted, Representative TILSON said later that he had returned to Washing without due discussion and deliberation? ton specifically to learn "what the Senate is going to do with the No, Mr. President; when we go irito the conference witt> this tari1l' bill," and will hold conferences with Senate and House leaders. bill we want to be able to say that every item in it bas been He expressed his belief that "the Senate has done a great deal of open to the free discussion by every Senator in this body; that harm to the tariff bill," and predicted that the Honse will not accept there was no unreasonable cloture ; that there was no suppres the debentures plan as tacked on to the bill in the Senate. He was sion; that there was no star-chamber proceeding; that the emphatic in saying that the House will not surrender the fiexible amendments which we have made to the House bill represent the tariti provision. ·deliberate and well-considered action of the Senate in the open The hlnt thus given by a leader in both the Senate and House that upon the Senate floor, and we therefore feel impelled to stand the tariff bill might be allowed to fail so as to retain the flexible-tariff :firmly and steadfastly by the action of that body, espP{'-ially provision that is in the present Fordney-McCumber Act gives encourage upon the essential and fundamental things involved in its ment to the plan that has been discussed secretly by House strategists. action. If we appoint conferees who will not thus stand for Briefly they propose to let the tottering Hawley-Smoot tariti bill die them, we can change them and appoint conferees who will when it comes back from the Senate. Then the Fordney-McCumber stand for the action of the Senate. Tariff Act, which initiated the "flexible-tariff" provision, would operate. I am pleading now, Mr. President, for the life of this bill. Under this President Hoover could say to the Tariff Commission: What I mean to say is that what has been proposed is a scheme "Extensive bearings have been held in both House and Senate show which if adopted would disarm the Senate conferees and put ing the need for increases in tariff duties. I want you to make a .them at a disadvantage in the conference deliberations. careful study of those hearings and of other information you have Mr. President, I hope Senators will reflect upon the scheme available, and to report to me with recommendations on all agricultural which has already been disclosed by the majority leader c,f the products, and on certain other industrial products regarding the need House--the scheme to wipe out all that we have done; -the for protection." · scheme to throttle and destroy the work of this extraordinary The President could then, on such recommendations, exercise his session, restore the old order of things here, and permit the authority to increase duties up to 50 per cent of present duties. Com President, upon the report of the commission based on a hurried modities that really must have protection could get it. · examination of the hearings taken in the House and Senate on The VICE PRESIDENT. The question is on the amendment this bill, to take :final action upon such items of the bill as he of the committee, which will be again stated by the clerk. may think require action raising or lowering the rates of the The CHIEF CLERK. On page 107, line 4, after the word present law to the extent of 50 per cent either way. That is · " metal," it is proposed to insert " or porcelain." ·the scheme; and thus we would witness the spectacle of the Mr. WALSH of Montana. Mr. President, I desire to submit President practically making a revision of the tariff, and exer a few observations on the proposal made by the Senator from cising a power that never ought to have been conferred upon Utah. him and that takes from the people a right that the Anglo It is now the 9th day of November, 1929. As I understand Saxon peoples of the world have prized above all other govern the proposal, it is that we shall now take a recess until the 20th mental rights, a right they have traditionally and stubbornly of November to allow the so-called coalition to agree upon such maintained and protected-namely, the control of the purse rates as are satisfactory"to them, and then that the Senate shall strings of the Nation and the levying of taxes upon the people resume its deliberations, and vote on the rates thus proposed by and through their representatives as a part of the liberty without further debate. which that great race has achieved, not only in this country but Mr. President, we are reaching the conclusion of Schedule No. I in every country where it is dominant. 3. The total number of schedules in the bill is 15. In other No! We will never give that up. We ought not to give- that words, when we shall have concluded the schedule on which we up. Whenever the people of this country shall permanently are now working, there will still be 12 more schedules with turn over the final decision of what taxes they shall pay to any which to deal, and, in addition to that, the very considerable agency whatsoever other than the body created by them for the free list. We have actually considered the Senate committee purpose of giving expression to their will and signifying their amendments appearing upon about one-third the number of assent to these taxes, then I predict that the entering wedge pages that are covered by these 15 s~hedules and the free list. will have been driven into the whole constitutional fabric upon Amendments from the floor to these three schedules still re which the prosperity and happiness and greatness and glory and main to be presented ; and the proposition of the Senator is power of this great country of ours is based. that we take a recess for 11 days in order to allow the so-called Mr. President, I wish to incorporate in the RECORD at the end coalition to agree upon these rates in the bill, and then come in ' of my remarks an account which appeared in the Evening Star and vote on them without debate. ·The mere statement of the of Washington of Friday, November 8, 1929, with reference to proposal shows ilie absurdity of it. the matters I discussed as to the attitude of the leader of the But, Mr. President, there is embodied here an idea that per House, Mr. TILSON. I wish it printed at the close of my haps characterizes the forces originally supporting this bill and remarks. th?se .opposing it. I under~ake to say that the idea of having The PRESIDING OFFICER (Mr. FEss in the chair). With this bill referred to a committee that ~hall be designated by the out objection, it is so ordered. so-called coalition, with the expectation that rates will be agreed The matter referred to is as follows: upon, is simply an impossibility. I speak, I think, advisedly [From the Evening Star,· Washington, D. C., Friday, November 8, 1929] concerning the Democratic side of the Senate. They are not accustomed to subordinate their own judgment about all political By Will P. Kennedy matters to the judgment and views of a small committee of Senator MosEs, of New Hampshire, President pro tempore of the so-called leaders. Each Member upon this side of the Senate Senate, declared to a gathering of 50 New England manufacturing and 1 has his own individual convictions concerning the rates in this export executives, officials of the Departments of State and Commerce, bill, and each Member proposes . to exercise his own judgment and Members of the House and Senate from New England last night with respect to the matter. ~ LX:XI----339 5382 CONGRESSIONAL RECORD-SENATE NOVEMBER 9 I am in no· position to speak for those upon the other side PAR. 373. Shovels, spades, scoops, scythes, sickles, grass hooks corn who have generally been voting with us with respect to the knives, and drainage_ tools, and parts thereof, composed wholly' or in rates, but I feel that their views are quite that way. I under chief value of metal, whether partly or wholly manufactured, 30 p<;!r take to say that it is impossible to organize a committee upon cent ad valorem. the other side of the Chamber among those who have been Mr. FESS. Mr. President, I wanted to speak on the amend voting with the Democrats upon this measure generally whose ment that the Chair has pronounced carried without having . judgment will be accepted by the rest of that particular any consideration whatever. . contingent. The VICE PRESIDENT. Does the Senator move recon It is not at all surprising to me that such a proposal should s~deration? have been made by the Senator from Utah, because that is the Mr. FESS. Yes; I do. . way the party of which he is a distinguished and shining The VICE PRESIDENT. Without objection, the vote will be member generally operates. The leaders propOse the plan to reconsidered. 'The Senator from Ohio is recognized. be followed, and the rest are expected to fall right in line and Mr. FESS. On the item of porcelain, I should like to ask the pursue the course that is thus outlined. We can not do that. Senator from Utah whether the statement of a constituent wllo Neither, I undertake to say, can the so-called progressives upon has written to me representing several others who have like the other side of the Chamber. wise written is a correct one. ·He makes this statement: But, Mr. President, there is another thing: In addition to the impossibility of it, let us understand that when these rates Porcelain parts might be classified as low as 10 per cent as the are thus reported, as is contemplated by the proposal of the parts of automobiles and as high as 30 per cent as parts of machines. Senator from Utah, · then they are to be voted upon without Or, in other words, that there would be a confusion; that they debate. I s the Senator from Utah afraid to have the proposals might be classified under two classes-in one case at 10 per of the Committee on Finance of the Senate discussed openly? Is cent, in the other case at 30 per cent. he afraid that discussion of these rates will serve still further Mr. SMOOT. I desire to call the Senator's attention to the to stigmatize the work of the committee? fact that spark plugs for automobiles, to which he refers, carry Mr. SMOOT. Mr. President, will the Senator yield? 25 per cent ad valorem-- The VICE PRESIDENT. Does the Senator from Montana 1\fr. FESS. Yes. yield to the Senator from Utah? Mr. SMOOT. And parts of machines carry whatever rate is Mr. WALSH of Montana. I yield. voted on page 107. The rate there has already been decreas~d Mr. SMOOT. · The Senator from Utah certainly does not ob- by a vote of the Senate from 30 to 25 per cent. ject to that. The Senator must know that all that the Senator Mr. FESS. Yes. . · from Utah had in mind was to get the bill passed and get it Mr. SMOOT. That has just been done; but if it came under ~ into conference; and if the conferees do not bring us a bill that the classification of escalators or machines for cutting, it would ' is satiffactory, the report can be rejected. be either 35 or 40 per cent. Mr. WALSH of Montana. Exactly. The Senator wants the Mr. FESS. Then the statement that there might be two bill passed without any discussion at all of the rates-- assessments on this particular article can not be true? Mr. SMOOT. No. Mr. SMOOT. No; that can not be so. Mr. WALSH of Montana. Just a plain vote, so that, as was Mr. REED. Mr. President, may I interrupt the Senator? so well said by the Senator from North Carolina [Mr. SIMMONS], The VICE PRESIDENT. Does the Senator from Ohio yield when the bill gets into conference there will be nothing available to the Senator from Pennsylvania? in support of the contentions made by the Senate conferees in Mr. FESS. Yes. relation to the bill. · Mr. REED. The thought that impelled the committee to put Mr. SMOOT. Just a moment, Mr. President. in the words " or porcelain " lay in the fact that in knitting Mr. WALSH of Montana. We have seen this before. machinery and braiding machinery there are a lot of little hooks The VICE PRESIDENT. Does the Senator from Montana made of porcelain of special shapes which are not made at all further yield to the Senator from Utah? in this country, or made very little here; and it seemed to us Mr. WALSH of Montana. I yield to the Senator. that it was wrong that they should carry the very high rates on 1 .Mr. SMOOT. I at least hope that one thing will result from porcelain products when they were not competing with anything. what bas happened to~day-that when we meet at 10 o'clock· They are really parts of those big knitting and braiding ma in the morning, and bold the Senate in session until 6, from fom· chines. It was a reduction in duty that we had in mind in to six hours of that time will not be utilized for the discussion putting them in here. We thought it was justified because they of things that have no relevance whatever to the bill. are not made in this country. Mr. WALSH of Montana. Then, the Senator ought not to in 1\Ir. SMOOT. If the Senator will read the paragraph, he can ten-upt the proceedings by making such an absurd proposal as plainly see that it has nothing whatever to do with an auto he has offered to us this morning. . mobile, because the paragraph provides " all other machines, 1\Ir. SMOOT. I proposed it, Mr. President, with one idea, finished or unfinished, not specially provided for." This pro and that is this: We are making no headway at all on the bill vides for "parts not specially provided for." It can not refer to-day; and I was perfectly willing, as far as I was concerned, to automobiles. Automobiles are specially provided for, and to give time-aud if there is not enough time let us extend it this says "not specially protided for." to prepare the amendments that will be offered and will be voted Mr. FESS. Then my constituent has the wrong idea. for anyhow. Mr. SMOOT. He must have. Mr. WALSH of Montana. Of course, I do not agree with the The VICE PRESIDENT. The question is on agreeing to the Senator that we are making no substantial progress on the bill. amendment. On the contrary, I think for the last two days we have made The amendment was agreed to. very substantial progress. Mr. SIMMONS. Mr. President, I am going to ask the Senator Mr. SMOOT. If that is the case, we will be on the bill for from Utah now if he will not turn to paragraph 365, page 89. months and months. l\Ir. Sl\IOOT. I was going to ask that, because I understand 1\Ir. BARKLEY. Mr. President-- that the Senator from Kentucky is willing that that amendment The VICE PRESIDENT. Does the Senator from Montana should be agreed to. yield to the Senator from Kentucky? Mr. BARKLEY. Mr. President, I have no objection to thiS". Mr. WALSH of Montana. I do. I thought it was really taken up yesterday, but I find it was not. Mr. BARKLEY. I venture the suggestion that if it had not Mr. SMOOT. Yesterday there was a request that it go over. been for the proposal of the Senator from Utah we would now Mr. REED. Which amendment does the Senator mean? have reached the end of the metals schedule. Mr. SMOOT. The amendment on line 22. Mr. WALSH of Montana. I am quite sure we would. Mr. REED. Does the Senator want to have that disagreed to? Mr. SMOOT. The Senator from Utah has not taken any Mr. SMOOT. No. time. · Mr. REED. Is the amendment to which the Senator refers Mr. FESS. 1\Ir. President-- on page 89, in line 22? The VICE PRESIDENT. The question is on agreeing to the 1\Ir. SMOOT. Yes. That was passed over. The amendment amendment of the committee. is to strike out "$25" and to insert "$17.50." The amendment was agreed to. The VICE PRESIDENT. The Secretary will state the amend The VICE PRESIDENT. The clerk will state the next ment. amendment. The amendment was, on page 89, line 22, under the provision The next amendment was, on page 107, line 10, after the word for " Shotguns, rifles, and combination shotguns and rifles, "scoop-s," to strike out "forks, hoes, rakes," so as to make the * * * valued at more than $10 and not more than $25 each, paragraph read : $6," to strike out "$25" and insert in lieu thereof "$17.50." 1929 CONGRESSIONAL RECORD-..SENATE 5383 .. I 1\Ir. HARRISON. Mr. President, I asked yesterday that that The next amendment was, on page 108, after line 2, to strike 'go over, with the hope that somebody would make an expla-· out: . Ination as to why the committee had changed front. - The PAa. 376. Antimony, as .regulus or metal, 2 cents per pound; needle explanation has not come, but I have no objection to the matter or liquated antimony, one-fourth of 1 cent per pound. being considered. Mr. REED. .l\Ir. President, is it understood that the amend- The amendment was agreed to. . 1 ment to be disagreed to is that which is in line· 22 and the The next amendment was, on Pl:lge 108, after line 5, to insert: first figure in line 23? If that is the only disagreement, I have PAR. 376. (a) Antimony, as regulus or metal, of whatever grade, shall • no objection, but when we get further on down in the para be subject to duty as follows: ~ graph to the more expensive shotguns, I will have a word to Four cents per pound, if the price is not over. 7 cents per pound. say. Three and one-half cents per pound, if the price is over 7 cents and not l\Ir. SMOOT. If the Senator wants to complete the other over 8 cents per. pound. · amendment, providing for guns valued at more than $17.50 and Three cents per pound, if the price is over 8 cents and not over 9 not more than $25 each, we can take that up. cents per pound: The VICE PRESIDENT. They are separate amendments. Two and one-half cents per pound, if the price is over 9 cents· and Mr. HARRISON. Mr. President, if part of it is going over,. not over 10 cents per pound. all of it ought to go over. Two cents per pound, if the price is over 10 cents and not over 11 l\Ir. SMOOT. I do not think there is any objection to it. cents per pound. Mr. HARRISON. I understood yesterday everything in the One and one-half cents per pound, if the price is over 11 cents and paragraph had been agreed to with the exception of the amend not over 12 cents per pound. ment providing for the guns valued at more than $17.50 and not One cent per pound, if the price is over· 12 cents and not over 13 more than $25 each. cents per .pound. Mr. SMOOT.- This is a part of it. One-half cent per pound, if the price iS over 13 cents and not over Mr. HARRISON. Let it all go . over if part of it is to go 14 cents per pound. over. . If the price is over 14 cents per pound, such antimony shall be exempt Mr. REED. Mr. President, I am not asking that any of it from duty. go over. I simply want to_ make a brief statement about very (b) For the purposes of subparagraph (a) "price" means the whole high-priced shotguns before we pass the subject over, and per- sale price (averaged for a period of one week) of ordinary brands , haps now is as good a tiwe as any. . (whether domestic or imported) in the New York market as shown· by A substantial number of American sportsmen in recent years the last quotation (given in a recognized weekly trade journal to be ' ha;ve been getting guns made _to or_der in :mngland and in Bel desiguated from time to time by the Secretary of the Treasury) prior gium, mostly i;l, London, and paying fqur and five hundred dol to the date of arrival of the imported antimony in tbe United States. lars apiece for them. If there is anything in . the world that (c) Needle or liquated antimony, one-fourth of 1 cent per pound. is a luxury,_ it is one of those guns. Regardless of what the Mr. CONNALLY. Mr. President, will not the Senator from Senate may do in respect of the low-priced and medium-priced Utah agree that this amendment may be passed over until guns, I think there is every reason in tl!e world for putting a Monday? substantial duty on the high-priced guns. TJ;lat was the action ·Mr. SMOOT. I would like to have the metals schedule com taken by the committee on this highest bracket. pleted to-day. We can make just as good guns in this country as can be Mr. CONNALLY. I want to offer an amendment tha't will , made abroad. On these very expensive guns there is a great take some little time to discuss, and there is a small attendance deal of handwork, a lot of engraying, a lot of fancy work, and here to-day. , it_might just as well be protected. It is not going to hurt any Mr. Sl\::I.OOT. I will ask that it go over for the present, and body to put this tariff on, anq it wilJ maintain the industry if we get through the schedule perhaps I will ask that we return here. . : .. to it. Mr. LA FOLLETTE. Mr. President, is the Senator referring The VICE PRESIDENT. The amendment will be passed to the amendment in line ·25, page 89, and line 1, on page 90? over. The Secretary will state the next amendment. Mr. REED. Particularly to the one in line 1 on page 90, -The next amendment was, on page llO, line 7, before the guns valued at over $50. words "per pound," to strike out "14 cents" and insert "16 Mr. BINGHAM. The two go together. cents," so as to read: 1\Ir. REED. That is all right. The VICE PRESIDENT. The question is on agreeing to the PAR. 382. (a) Tin foil less than six one-thousandths of 1 inch in thick amendment, which the Secretary will again report. ness, 35 per cent ad valorem; aluminum foil l e~s than six one-thou The LF.XHSLATIVE CLERK. On page 89, lines 22 and 23, to strike sandths of 1 inch in thickness, 40 per cent ad valorem ; bronze powder • out "$25" and to insert in lieu thereof "$17.50," so as to read: not of aluminum, 16 cents per' pound. Valued at more than $10 and not more than $17.50 each, $6 each. 1\Ir. BARKLEY. l\Ir. President, this. amendment should not be agreed That is an increase in the tariff on a product of The amendment was rejected. to: . The VICE PRESIDENT. The Secretary will state the next which there is a practical monopoly in the_ United States. I do not want to take up the time of the Senate discussir..g it, amendment. but it should net be agreed to. . The domestic. production comes The LEGISLATIVE CLERK. On page 89, line 23, to ·insert the in competition with very few importations. My information js, words "valued at more than $17.50 and not more than $25 and it is reliable, that not very long ago the American pro each, $8 each." ducer was seeking to make an arrangement by which he would Mr. SMOOT. I ask that that amendment be rejected. buy all the foreign production and dump it in the ocean in The amendment was rejected. order that none of it might come in and compete with his The VICE PRESIDENT. The Secretary ·will state the next product. , , amendment. . The VICE PRESIDENT. The question is on agreeing to the The LEGISLATIVE CLERK. ~age 89, . line 24, at the end of the amendment. line, to strike out " $25 each, $10 each " and insert in lieu The ~mendment was rejected. thereof " $25 and not more than $50 each, $10 each ; valued at The next amendment was, on page 110, line 13, to strike out more than $50 each, 20 per cent ad valorem." the words " and 25 per cent ad valorem," so as to read : · 1\Ir. BARKLEY. Mr. President, the committee does not want this amendment disagreed to? Aluminum bronze powder, powdered foil, powdered tin, flitters, and Mr. REED. No. The result of that would be to change the metallics, manufactured in whole or in part, 12 cents per ~hlund; duty only on guns valued at more than $50. It leaves the pres bronze, or Dutch netal, or aluminum, in leaf, 6 cents per 100 leaves; bronze powder, or Dutch metal powder, or aluminum powder, in leaf. ent duty on guns valued at less than $50. 6 cents per 100 leaves. The foregoing rates on leaf apply to leaf not The amendment was agreed to. exceeding in size the equivalent of 5Ih by 5¥.a inches; additiomil duties The VICE PRESIDENT. The Secretary will state the next in the same proportion shall be assessed on leaf exceeding in size said amendment. equivalent. The next amendment was, on page 107, line 10, to strike out the words "forks, hoes, rakes," so as to read: The amendment was agreed to. Mr. WALSH of Massachusetts. 1\Ir. President, I find t.bat it PAR. 373. Shovels, spades, scoops, scythes, sickles, grass hooks, corn is quite possible that Schedule 4, "Wood and manufactures of knives, and drainage tools, and parts thereof, composed wholly or in wood," may be reached .on Monday. Mo~ths ago I made ar chief value of metal, whether partly or wholly manufactured, 30 per rangements to deliver t.wo addresses in my State on the occa cent ad valorem. sion of the dedication of some monuments to World War vet The amendment was agreed to. erft.!ls on Armistice Day, !!fid I can !J.Ot be here. I want to ask 5384 CONGRESSIONAL RECORD-SENATE NOVEMBER 9 unanimous consent that Schedule 5, " Sugar, molasses, and I Ml>. WALSH of Massachusetts. I am only bringing up the manufactures of sugar and molasses," be taken up next, and question now in order that Senators may be acquainted with that following the action of the Senate. upon that schedule the facts. Schedule 4 be taken up. Mr. HARRISON. :Mr. President, does not the Senator from Mr. SUIMONS. 1\Ir. President, may I suggest to the SE:nator Utah think we would save time by adjourning over Monday, that he limit his request to passing over the wood schedule, Armistice Day, in order that conferences may be held and that because the Senate may prefer to take up some other sct:edule in the end we might expeuld three schedules. go over until next week. 1929 CONGRESSIONAL-RECORD-SENATE '5385 The VICE PRESIDENT. Without objection,· the vote by The VICE PRESIDENT. The question Is on -agreeing to the which the amendment was agreed to will be reconsidered and amendment. the amendment will go over. The ·amendment was agreed to. Mr. BARKLEY. The whole paragraph should go over. The VICE PRESIDENT. The clerk will state the next The VICE PRESIDENT. Without objection, paragraph 385 amendment. will be passed over. The clerk will state the next amendment. The LmiSLATIVE CLERK. On page 114, paragraph 392, in line The LEGISLATIVE CLERK. On page 112, paragraph 387, the 4, the committee proposes to strike out the words " ores or " committee proposes to strike out lines 18 to 24, both inclusive, as and insert the words" ores, flue dust, or," and in line 9, to strike follows: out the words " ores or " and insert the words " ores, flue dust, PAR. 387. illuminating or lighting fixtures, lamps, lamp bases, can or," so as to make the paragraph read: delabra, and candlesticks, any of the foregoing al}.d parts thereof, PAB. 392. Lead-bearing ores, flue dust, and mattes of all kinds, 1¥., finished or unfinished, not specially provided for, if wholly or in chief cents per pound on the lead contained therein : Provided, That such value of base metal or alloy, 50 per cent ad valorem; if wholly or in duty shall not be applied to the lead contained in copper, gold, or silver chief part of, or plated with, platinum, gold, or silver, 65 per cent ad ores, or copper mattes, unless actually recovered: Provided further, valorem. That on all importations of lead-bearing ores, flue dust, and mattes · Mr. BARKLEY. I have no objection to the amendment. of all kinds the duties shall be estimated at the port of entry and a The amendment was agreed to. bond given in double the amount of such estimated duties for· the The next amendment was on page 113, paragraph 387, where transportation of the oref!~, flue dust, or mattes by common carriers bonded for the transportation of appraised or unappraised merchan the committee proposes to insert : dise to properly equipped sampling or smelting establishments, whether PAR. 387. Milk cans, not made of tin plate, 40 per cent ad valorem. designated as bonded warehouses or otherwise. On the arrival of the Mr. BARKLEY. Mr. President, I understand this is a trans ores, flue dust, or mattes at such establishments they shall be sampled fer of milk cans from the free list, placing a duty upon them of according to commercial methods under the supervision of Government 40 per cent ad valorem. The amendment ought to be rejected. officers who shall be stationed at such establishments, and who shaH The VICE PRESIDENT. The question is on agreeing to the submit the samples thus obtained to a Government assayer, designated committee amendment. by the Secretary of the Treasury, who shall make a proper assay of the The amendment was rejected. sample and report the result to the proper customs officers, and the The VICE PRESIDENT. The next amendment will be stated. import entries shall be liquidated thereon. And the Secretary of the The next amendment was, on page 113, line 7, before the Treasury is authorized to make all necessary regulations to enforce the wora " and," to strike out "Nickel oxide, 1 cent per pound; provisions of this paragraph. nickel" and insert "Nickel," so as to make the paragraph read: The VICE PRESIDENT. Without objection, the amendment is agreed to. The next amendment will be stated. PAR. 390. Nickel, and alloys (except those provided for in par. 302 or 380) in which nickel is the component material of chlef value, in pigs The next amendment was, on page 115, line 9, after the word or ingots, shot, cubes, grains, cathodes, or similar forms, 3 cents per "Provided," to strike out '' That such duties shall not be applied .pound ; in bars, rods, plates, sheets, strips, strands, castings, wire, tubes, to the zinc contained in lead or copper ores unless actually recovered: Provided further," so as to read: tubing, anodes, or electrodes, 25 per cent ad valorem; and in addi~ion thereto, on all the foregoing, if cold rolled, cold drawn, or cold worked, PAB. 394. Zinc-bearing ore of all kinds, containing less than 10 per 10 per cent ad valorem. cent of zinc, shall be admitted tree of duty; containing 10 per cent or more of zinc and less than 20 per cent, one-half of 1 cent per pound The amendment was agreed to. on the zinc contained therein ; containing 20 per cent or more of zinc Mr. GEORGE. l\1r. President, of course, there is no objection and less than 25 per cent, 1 cent per pound on the zinc contained to the amendment if nickel oxide goes on the free list, but I therein; containing 25 per cent of zinc or more, 1% cents per pou.ad want to make an inquiry with reference to paragraph 387. on the zinc contained therein: Provided, That on all importations of I do not understand that milk cans gQ to the free list if the zinc-bearing ores the duties shall be estimated at the port of entry and amendment is rejected. a bond given in double the amount of such estimated duties for the Mr. SMOOT. The Senate has voted and the amendment has transportation of th ores by common carriers bonded for the trans been rejected. portation of appraised or unappraised merchandise to properly equipped Mr. GEORGEl My understanding is that that would carry sampling or smelting establishments, whether designated as bonded the item back to section 398, and under the _House language it warehouses or otherwise. On the arrival of the ores at such establish would make the cans dutiable at 50 per cent. ments they shall be sampled according to commercial methods under tile 'Mr. REED. They have been classified as agricultural imple supervision of Government officers, who shall be stationed at such ments and as such have been coming in free. establishments, and who shall submit the samples thus obtained to a Mr. SMOOT. They originally came under the basket clause, Government assayer, designated by the Secretary of the Treasury, who but the classification put them on the free list. shall make a proper assay of the sample and report the result to the Mr. GEORGE. If that be correct, I am satisfied. I merely proper customs officers, and the import entries shall be liquidated wanted to ascertain the facts. thereon. And the Secretary of the Treasury is authorized to make all The VICE PRESIDENT. The clerk will report the next necessary regulations to enforce the provisions of this paragraph. amendment. Mr. W A.TERMAN. Mr. President, I hope this amendment The LEGISLATIVE CLERK. On page 114, paragraph 392, the may be disagreed to. There are several reasons why, but I committee proposes to strike out "ores and mattes of" and in do not propose to enter into an extended discussion. sert in lieu thereof "ores, flue dust, and mattes, of,'' so as to It does not seem to me that a duty should be exacted upon make the sentence read: materials which can not be saved when imported in ores. In the Provided further, That on all importations of lead-bearing ores, flue preceding paragraph in connection with lead this identical dust, and mattes, of all kinds the duties shall be estimated at the port language remains. It would seem to me that the Committee on of entry, etc. Finance must have been confused when they left it in the para Mr. BARKLEY. Mr. President, what is the object of putting graph in connection with lead and took it out in connection with flue dust in this provision? zinc. The items run parallel to eaeh other. If the language is :M:r. REED. Because it is a metal-be.aring material which to be retained in connection with lead, it should be retained in connection with zinc; and if it is to be stricken out in con is susceptible of smelting. It can be reduced the same as. ore. nection with zinc, it should be stricken out in connection with Mr. BARKLEY. It bears a close relationship to the ore with lead. In view of that fact, I hope that the amendment will be which it is classified? rejected. Mr. REED. It is simply classified with the ore. The Sena Mr. THOMAS of Oklahoma. Mr. President, the junior Sena tor will notice in the first line of paragraph 392 that flue dust tor from Missouri [1\fr. PATTERSON] has an amendment which he has been classified with metal-bearing ores. In order to be con desires to offer as a substitute for the committee amendment. sistent, we have simply carried it on down in three other places I see that he is not present at the moment. I respectfully re where lead-bearing ores are mentioned. que&t that consideration of the paragraph may be postponed Mr. BARKLEY. I do not think there is any objection to it. until he may be advised so he may present his amendment. Mr. WALSH of Montana. 1\Ir. President, if the ores are made Mr. SMOOT. The junior Senator from Missouri wants to dutiable the flue dust should be, too. In the process of smelting, have the committee amendment disagreed to. particles are carried off with the fumes and dropped in the flues. Mr. THOMAS of Oklahoma. He has a substitute which he Being resmelted, the ore is taken from the flue dust, so that it is desires to offer. really the same thing as the ore. Mr. SMOOT. I think the rejedion of the committee amend 1\fr. BARKLEY. The amendment merely harmonizes the pro ment would be more satisfactQry than the adoption of the amend vision? ment he is going to offer, if I understand his amendment cor Mr. WALSH of Montana. Yes. rectly. I will say to the Senator from Oklahoma that if the ·coNGRESSIONAL RECORD-SENATE NOVEMBER 9 tcommittee amendment is rejected and the Senator from Mis PAR. 396. Print rollers, of whatever material composed, with raised ,souri, not being here now, desires then to offer his amendment, I patterns of brass or brass and felt, finished or unfinished, used for print will ask for a reconsideration of the matter. ing, stamping, or cutting designs, $5 each and 72 per cent ad valorem. Mr. THOMAS of Oklahoma. If the Senator from Missouri 1\fr. GEORGE. 1\fr. President, I \dsh to make an inquiry in does not care to offer his amendment, then I desire to offer it reference to that amendment. Was not this duty raised by a (as a substitute; but he· has it lying on the table, and he being presidential proclamation from 60 per cent to 72 per cent? :not present, I respectfully request that it go over. Mr. SMOOT. The duty is fixed at 60 p.er cent in the act of Mr. SMOOT. What is the Senator's amendment? 1922, but it was increased to 72 per cent by presidential proc Mr. THOMAS of Oklahoma. At the present time low-grade lamation. Einc ore comes in duty free. Mr. GE_QRGE. Yes; the duty was raised by presidential That is the I.aw of 1922. At that time, Mr. President, methods proclamation. Now the committee proposes to add "$5 each" to of treating ore by which low-grade ores could be made valuable the duty of 72 per cent. were not known. In the past seven or eight years, however, Mr. SMOOT. The principal item of cost in the production ·' methods have been devised for treating low-grade zinc ores. At of .these rollers, I will say to the Senator, is labor, and is highly !this time zinc ore containing less than 10 per cent in quantity skilled labor at that. Thi was a case in which the repre , can be treated by a process whereby all the zinc can be regained. sentatives of the laborers who make these rollers appealed for a i The Senator from Missouri ·desires to propose an amendment great deal more than the duty which the committee has re to tax the low-grade zinc ore that is now coming in from Mexico ported. If labor has any claim whatever to recognition in the and from Canada. way of an increased duty, it is in the case of thE'se print Mr. SMOOT. That has nothing to do with the amendment rollers. which we now have under consideration. The amendment of the Senator f'rom Missouri will apply to paragraph 394, which Mr. GEORGE. Mr. President, I wish to ask the Senator from Utah if the opinion upon which the President based his provides: proclamation increasing the duty to 72 per cent was unanimous? Zinc-bearing ore of all kinds, containing less than 10 per cent of Mr. SMOOT. My recollection is that it was not. zinc, shall be admitted free of duty. Mr. GEORGE. There was a divided opinion? It is not in order to offer an amendment to that provision, be Mr. SMOOT. There was a divided opinion. We have a cause the committee has made no change in it. I do not think sample of the rollers in the other room, but I think the Senator the Senator from Missouri objects to th.e pending amendment in knows what they are. the least ; but he does object to the provision I have just read Mr. DENEEN. Mr. President, I have here a sample of print ; and wants a duty provided for therein. rollers. This [exhibiting] is one. It requires 175 hours of Mr. THOMAS of Oklahoma. As I understand, the amendment work to produce it; the wage is $1.08 an hour, representing a which is to be offered by the Senator from Missou'ri proposes labor cost of $189. Millions of yards of wall paper may be to strike out, on page 115, paragraph 394, beginning in line 1, printed from such a roll as this. The request is made on behalf down to and including the word "therein " in line 8, and to of the union wall-paper craft to add $5 to the duty on this sub. titute a new provision therefor. print roller. Mr. SMOOT. That is just what I have stated; but the In Germany. the wage, instead of being $1.08 an hour is• amendment of the Senator from Missouri has nothing whatever 23lh cents an hour; in Germany it costs $41.125 to produ~e a to do with the pending amendment. like print roller. With the tariff the landed cost, with a reasi)n The VICE PRESIDENT. The Chair will state to the Senator able profit here of the German print roller, is $103.20 whereas from Oklahoma that the Chair has a copy of the proposed the labor cost alone in the United States is $189. ' amendment of the Senator from Missouri, and is advised by the The proposed additional duty will add nothing to the cost of clerk it does not apply to the pending amendment. wall paper, but will protect the labor engaged in this industry. 1\fr. THOMAS of Oklahoma. My only purpose was to protect Mr. HARRISON. Mr. President, may I ask the Senator a the rights of the Senator from Missouri. If 1 may be assured question? that that will be done, I shall have nothing further to say. The VICE PRESIDENT. Does the Senator from Illinois Mr. SMOOT. Mr. President, the situation relative to the yield to the Senator from 1\Iississippi? amendment of the Senator from Missouri is as has just been 1\fr. DENEEN. I yield. stated by the Chair. Mr. HARRISON. The statistics show that only 28 of these The VICE PRESIDENT. The Chair will state that because articles came in last year. There has been a gradual falling off of the nature,of the amendment the Senator from Missouri will year by year in the importations, and when the Tariff Commis have a right to offer it when individual amendments shall have sion investigated the question and allowed a 72 per cent rate, · been reached. The question is on agreeing to the pending there was a strong dissenting opinion in the commission itself. amendment. Mr. DENEEN. Mr. President, I ask to have read by the The amendment was rejected. clerk a statement which has been handed to me which gives all The VICE PRESIDENT. The next amendment of the Com the facts regarding this item. mittee on Finance will be stated. The VICE PRESIDENT. Without objection, the clerk will The next amendment was, on page 116, line 7, after the word read. "remanufactured," to strike out "zinc dross and zinc skim The legislative clerk read as follows: mings," so as to make the paragraph read : Ju~Y 31, 1929. Old and worn-out zinc, fit only to be remanufactured, 11h cents per MEMORANDUM FOR SENATOR DENEE '-PARAGRAPH 396 pound. We have placed at the disposal of the Finance Committee two print Mr. GEORGE. Mr. President, I understand that amendment rollers in order that the membership of the committee might see for simply proposes to transfer zinc dross and skimmings to the free themselves that this commodity is one where from 80 per cent to 90 per list? cent of the production costs represents actual artistic band labor. Mr. SMOOT. The amendment proposes that those commodi These rollers represent but a small part of the cost of printing wall ties shall go to the free list. papers, as one set of rollers will print millions of rolls of wall paper. Mr. REED. Where they now are. Therefore the increase in tariff duty which the workers ask for will not Mr. PHIPPS. Mr.· President, I think it would be a mistake add any additional cost to the purchasers of wall papet·. to agree to the amendment because, as in the case of flue dust, Exhibit No. 1 is a complete roller; that is, this roller contains the this metal-bearing material may be recovered. Zinc dross and entire pattern. The actual labor in this roller represents the work of skimmings may be resmelted, and the zinc resulting therefrom is an American journeyman for a period of 175 hours. For this work be ju t as good as though it came in in the form of ore. I can not receives 1.08 per hour, or a total of $189. understand on what theory the Finance Committee eliminated The German print roller cutter, producing approximately the same zinc dross and zinc skimmings. I think the amendment should work per hour or per day as does the American worker, would produce be disagreed to. thls same roller at a labor cost of $41.125, the German workers receiving The VICE PRESIDENT. The question is on agreeing to the $0.235 per hour. amendment. Based upon · a duty of 72 per cent, and allowing for overhead and The amendment was rejected. profit to have this roller in"oiced at a total of, say, $60, foreign valu The VICE PRESIDENT. The next amendment of the Com ation, the total landed cost, duty paid, would be only $103.20 as against mittee on Finance will be stated. an American labor cost alone of $189. The next amendment was, in paragraph 396, on page 116, Exhibit No. 2 is a roller, one of a set of five, which roller itself line 12, after the word " designs," to insert "$5 each and," so represents 100 hours of actual laboi· of an American journeyman print as to read: cutter, for which be received a total of $108. This same roller can be 1929 CONGRESSIONAL RECORD-~ SENATE 5387 produced in Germany by German workers in approximately the same Mr. SMOOT. By a Treasury ruling, it cuts the duty almost time at a labor cost of $23.50. in half. No, Mr. President ; this is " steel or other metal " It A duty of 72 per cent, as provided in the House bill, the same as is the same rate. · the present law, on a foreign valuation of, say, $40, allowing for over Mr. REED. Mr. President, if the Senators will look at the head costs and profits, would mean an additional $28.80, or a total language of •paragraph 396 they will see that at present in the landed cost, duty paid, of $68.80 as against a labor cost in America House bill it reads: of $108. In view of these facts, which can not be controverted, the membership . Embossing rollers, print blocks, and print rollers not specially pro of the United Wall Paper Crafts, affiliated with the American Federation VIded for, of whatever material composed, used for printing, stamping, or cutting designs, 60 per cent. of Labor, comprising those American workers employed in the produe tlon of print rollers, ask for a specific duty of at least $5 per roller in We are putting in there 30 per cent, which is cutting in half addition to the present duty of 72 per cent ad valorem. the duty in th.e House bill. Respectfully submitted. The VICE PRESIDENT. The question is on agreeing to the UNION WALL PAPER CRAFTS, amendment. By RUDOLPH HEIND, Treasun:·r. The amendment was agreed to. This request unanimously indorsed by the membership of America's The VICE PRESIDENT. The clerk will state the next amend Wage Earners Protective Conference. ment of the committee. By M. J. FLYNN, The next amendment was on page 117, line 2, before the words E~~:ecuttve 8ecretar1J. "ad valorem," to strike out " 50 per cent " and insert " 60 per The VICE PRESIDENT. The question is on agreeing to the cent"; so as to make the paragraph read: amendment reported by the committee. PAR. 397. Drills (including breast drills), bits, gimlets, gimlet bits, Mr. BARKLEY. Mr. President, a statement was made countersinks, planes, chisels, gouges, and other cutting tools; pipe tools, ·a while ago that only 28 of these articles came in. That was a wrenches, spanners, screw drivers, bit braces, vises, and hammers ; slight mistake. According to the Tariff Commission, the last calipers, rules, and micrometers ; all the foregoing, if hand tools not report of domestic production was for 1923, when the com provided for in paragraph 352, and parts thereof, wholly or in chief bined output amounted to about 22,000 rollers, valued at $745,- value of metal, not specially provided for, 60 per cent ad valorem. 000. During 1926, 305 were imported; in 1927, 1,223 were im Mr. BARKLEY. Mr. President, I offer an amendment there, ported ; and in 1928, 343 were imported. That correction ought in lieu of "60" to insert "40," which I understand is the to be made in view of the statement made a while ago that only present law. 28 came into this country. The PRESIDING OFFICER (Mr. FEss in the chair). The 1\lr. HARRISON. Mr. President, the correction suggested by amendment to the amendment will be stated. the Senator from Kentucky should be made. The statistics Mr. BLAINE. Mr. President-- show the importations of print blocks as being 28, while the The LEGISLATIVE CLERK. On page ll7, line 2, it is proposed imports of print rollers for 1928 were 343; but for the year to strike out " 60" and insert "40," so that, if amended, it will before, 1927, there were 1,240 print rollers imported. So there read: has been a falling off in imports. . 1\fr. SMOOT. We can not tell with exactness how many are Forty per cent ad valorem. imported, because they have not all come in under this para The amendment to the amendment was agreed to. graph, but have come in under another paragraph as parts of Mr. BLAINE. Mr. President, I have been endeavoring to machines. We do know, however, that the imports have greatly obtain recognition, so· that I might inquire regarding the increased, and I think that if there is any item in the tariff change. As I understand, the House enumerated a number of bill on which an increase of the tariff rate is justified on the articles. I have no information from the Tariff Information ground of protection to the laborer it is in this instance, be Summary as to what rate of dpty these articles bear under the cause the cost of production is practically all a labor cost. present law. Mr. WALSH of Montana. Mr. President, another item of in Mr. SMOOT. Bits, gimlets, countersinks, planes, chisels, formation given by the Tariff Commission ought to be sub gouges, and other cutting tools, pipe tools, wrenches, spanners, mi tted in this connection, and that is the total value of the screw drivers, hammers, rules, and micrometers, 40 per cent ad entire imports of this article in 1928 was $7,436; the unit value valorem under paragraph 399. The House increased that to 50 was $21.68, and the duty 72 per cent. With $5 additional that per cent and the Senate committee has increased it to 60 per rate, of course, would be increased 20 per cent more, and cent. would be 92 per cent on this product. Mr. BLAINE. The section numbering has been changed? I recur to the total value of the imports being $7,436, and call Mr. SMOOT. Yes; that is all. attention to the fact that in 1923 $745,000 worth of these rollers Mr. BLAINE. I did not observe that. I simply wanted the were produced in the United States, so that the imports are information. about 1 per cent of the domestic production. The PRESIDING OFFICER. The question is on agreeing to Mr. DENEEN. This increase in the rate, if adopted, will the amendment as amended. add nothing to the cost of · production of wall paper. Anyone The amendment as aJlfended was agreed to. can see the skill and ability required to produce such an article The next amendment was, on page 117, line 11, after the as this [exhibiting] and the amount of labor involved. The word "manufactured," to strike out "50 per cent" and insert trade fears competition, and is having it. One of these rollers " 45 per cent," so as to make the paragraph read : will print millions of yards of wall paper. The reason why they PAR. 398. Articles or wares not specially provided for, if composed are produced in such comparatively limited number is that one wholly or in chief value of platinum, gold, or silver, and articles or , of them can produce a great quantity of wall paper. wares plated with platinum, gold, or silver, or colored with gold The VICE PRESIDENT. The question is on agreeing to the lacquer, whether partly or wholly manufactured, 65 per cent ad valo- 1 amendment reported by the committee. [Putting the question.] rem; if composed wholly or in chief value of iron, steel, lead, copper, The noes seem to have it. brass, nickel, pewter, zinc, aluminum, or other metal, but not plated ' Mr. DENEEN. I ask for a division. with platinum, gold, or silver, or colored with gold lacquer, whether Mr. HARRISON. Mr. President, i dislike to suggest the partly or wholly manufactured, 45 per cent ad valorem. absence of a quorum, because there are not many Senators here Mr. BARKLEY. Mr. President, while 45 per cent is a reduc- ! this afternoon, and I doubt whether we could get a quorum. tion from the House rate, it is an increase from 40 per cent, 1 Will not the Senator let this amendment go over, if he is going which is carried in the present law. 1 to ask for a division, until we can finish the metal schedule of The imports of all these articles are very insignificant, and I which there are just two pages left, as I understand, and then if the exports of many of them are very large. he insists on another vote I can call for a quorum. Perhaps we I move that instead of "45 per cent" we substitute "40 per : can save time in that way. cent," which is the present law. Mr. DENEEN. I have no objection to that being done. The PRESIDING OFFICER. The question is on the amend- ! The VICE PRESIDENT. Without objection, the amendment ment offered by the Senator from Kentucky to the amendment . is temporarily passed over. The next amendment will be stated. I of the committee. 1 The LEGISLATIVE CLERK. In paragraph 396, on page 116, at the The amendment to the amendment was agreed to. · beginning of line 13, it is proposed to strike_out "and" and The amendment as amended was agreed to. · 1 insert " of steel or other metal, 30 per cent ad valorem," so as to Mr. DENEEN. Mr. President, I should like to return to 1 read: line 12, _page 116, the amendment inserting the words "$5 each ! Embossing rollers of steel or other metal, 30 per cent ad valorem. and." I understand that the objections will be withdrawn. · Mr. BARKLEY. Mr. President, what is the effect of that? Mr. BARKLEY. We have no objection to that amendment., ; Mr. REED. It cuts the duty in halt. Mr. President, and I am very glad to agree to it. 5388 CONGRESSIONAL RECORD-SENATE NOVEMBRR 9 Mr. DENEEN. I ask that the amendment be acted upon. 1\Ir. SIMMONS. Mr. President, I assume that Senators in The PRESIDING OFFICER. The question is on agreeing to charge of the schedules could very quickly run over the amend the amendment of the committee. ments and decide about them. We are talking about amend The amendment was agreed to. ments. 1\Ir. REED. Mr. President, in connection with the item of 1\fr. BARKLEY. That would be true if amendments were print rollers, on which we have just acted, it is true that the only to come from Senators in charge of the schedules, but any statistics given us by the Tariff Commission show only some Senator can offer an amendment to any paragraph, and it 300 rollers imported. I know that the amendment haf-< been might be difficult to limit the debate in advance on an important agreed to; but I want the RECORD to show that I have just been amendment. told that the reason why the imports appear to be so small is Mr. SIMMONS. I agree with the Senator. If there is a that a great many of them have been classified on admission as general feeling here that many of the things should be exempted parts of machines, and in that way have not come within the this rule should not be adopted, but I had n~sumed from what statistics reported by the Tariff Commission. I had heard that there was no desire to take more than 10 I thought it was only fair that that statement should be made minutes upon the great mass of the amendments. There might in connection with the vote just taken. be in each schedule two or three items of outstanding impor l\ir. GEORGE. Mr. President, I desire to say in that con tance that we might want to have excluded. nection that on some further investigation I discovered that 1\:lr. BARKLEY. I want the Senator to understand that I that was true; and I think the Senator from Utah called atten do not intend to object to his request, but I wanted to ask tion to it. whether it was to apply to amendments offered spontaneously Mr. SMOOT. Ye ; I called attention to it. from the floor, as well as to committee amendm~nt ·. Mr. SIMMONS. Mr. President, a few days ago we triea-at l\Ir. SIMMONS. I will make it apply this time to amend least I tlied, speaking for this side of the Chamber-to get a ments offered by the committee, so as to confine it to them. unanimous-consent agreement for the purpose of limiting dis Mr. SMOOT. Of course, that takes in the amendment on cussion upon amendments to the pending bill, with ce:rtain shingles. exceptions. The Senator from Michigan [Mr. CouzENs] obj<'cted . l\Ir. SIMMONS. That is one of the excepted items. at that time. Mr. BROUSSARD. Mr. President, I should want to except I now wish to make a proposal for a unanimous-.:!onsent the fifth schedule, the sugar schedule. agreement which meets the objection, as stated to me, of the Mr. SIMMONS. Of course, sugar is one of the outstanding Senator from Michigan. I ask unanimous consent that bere items. after, or as soon as we have finis-hed the schedule upon which l\Ir. BROUSSARD. I merely want to have that understood, we are now acting, debate upon each amendment shall be lim because these agreements are sometimes made when a Senator ited to 10 minutes, provided that at the time we begin considera who might be ·interested is not present. I wish to have it now tion of a schedule there shall be furnished to the chairman of understood that I shall certainly object if anybody wants to the committee a list of amendments that Senators wish ex limit the debate on sugar. cepted from that rule, and they are to be excepted from its Mr. SIMMONS. The Senator understands that under my operation. proposal he would simply have to ask that that be excepted Mr. JONES. Mr. President, may I ask the Senator a from the rule, and it would be excepted. question? l\fr. BROUSSARD. I just want to put the exception in the The PRESIDING OFFICER. Does the Senator from North RECOBD now. Carolina yield to the Senator from Washington? The PRESIDING OFFICER. Will not the Senator from Mr. SIMMONS. I do. North Carolina state his unanimous-consent request again? Mr. JONES. Would the request of a single Senator that a Mr. SIMMONS. 1\Ir. President, I am somewhat amazed to certain item be excepted from that agreement be all that would find so many Senators who desire probably to take more than be required? · 10 minutes. I did not suppose there were many items on which Mr. SIMMONS. No; I understood we were to have unani they would desire longer time than that. But while, when I mous consent that all amendments included in that list of :first made this request, there was no objection except that exceptions were to be excepted from the operation of the coming from the Senator from Michigan, it seems now there unanimous-consent rule. are others who want to take longer than 10 minutes. I myself Mr. JONES. I do not know that I understand the Senator's do not want more than 10 minutes on any amendment. I had proposition. This is what I have in mind: I have not taken any supposed that was the feeling of most Senators. I think we of the time of the Senate in connection with this bill, and I can have discussed this matter until it is pretty well worn out. not take very much time ; but we are just reaching a proposi But it seems that some want more than the time I have sug tion on which I shall have to take some time, namely, in the gested; they want to have exceptions made, and probably if wood chedule, the matter of shingles; and then, when we have there is to be a multitude of exceptions the rule would not work an opportunity to offer general amendments, lumber. at all. Mr. SMOOT. I suggest to the Senator from North Carolina Mr. HARRISON. Mr. Pre ident, does the Senator want to that it would be better not to make the request at this time, have his request submitted? because I am quite sure the junior Senator from Washington Mr. SIMMONS. I do not. [Mr. DILL] would not consent to it until after shingles are dis STATEMENT OF COMMISSIONER E. P. COSTIGAN ON PIG ffiON posed of. Mr. BARKLEY. Mr. President, I ask unanimous consent Mr. SIM:l\lONS. Mr. President, that is just what I was pro that there be printed in the RECORD at this point the dissenting viding for-that if any Senator wished to have a particular report of Commissioner Costigan of the increase in the tariff amendment exempted from the operation of this rule he should on pig iron. I make this request because of the emphasis :file his request with the Senator from Utah at the beginning of which has been laid on the report of the commission. the consideration of the schedule, and that weuld then be an There being no objection, the matter was ordered to be printed excepted item. in the RECORD, as follows : Mr. JONES. The request of a single Senator, submitted to SEPARATE STATEliiD

1 and, accordingly, any other commission finding, which under the law eign costs. However, the commission heretofore has invariably held must apply at the present time, is so inaccurate as to be of doubtful that such estimates were the outcome of necessity, and bas been in a • validity. While tile commission seeks to avoid such a development by position to report information acquired in the field, supplemented in ' reporting that the maximum increase in duty is indicated, even if Ger- part by the evidence alforded by invoice data. many be considered the principal competing country, the ~mmission As already observed, in contrast with such precedents the majority should have affirmed the existing competitive priority of Germany, par of the Tariff Commission i.n the pig-iron investigation concluded at Iticularly since the commission is in the possession of data, equally the outset to determine foreign comp~titive costs, so far as possible, serviceable with the Indian figures, for the comparison of inferred by inferences drawn from foreign invoice data or ·similar information German costs in 1924 with ascertained domestic costs, and is J.n an even available to the commission, without following the customary practice better position with respect to Germany to assume the continuance of of conducting foreign field inquiries. This unusual course was per such cost conditions through 1925 and 1926-in other words, as the law severed in, and the pig-iron report now being transmitted presents, intends, practically to the date of the commission's report . to the as the basi.s of its conclusions with respect to Indian and German President. costs, certain maximum figures derived, in the case of German costs, 3. The commission's conclusions that the Indian productioQ. cost of from invoice data; and, in the case of Indian costs, in part from pig iron was in 1924, and may still be considered, $13.36 per long ton, invoices and in part from importers' books. Such books give, of course, and that the New York delivery cost of such pig iron was and is $20.01 the American selling price of pig iron to importers, and from this the (Report, p. 26), are inaccurate, in that the basic Indian cost, as ascer foreign selling price and production cost are severally computed by tained, even, conceding its accuracy for the purpose of discussion, is making deductions for such factors as consul's fees ; brokerage fees, rather the inferred maximum cost in India. With some reason, fox when incurred ; bills of lading, if any ; insurance ; and transportation. instance--modified, to be sure, in the case of Germany by the recent It developed early in the present investigation that certain Indian in Treasury Department's finding of dumping-the report assumes (p. 24) voice prices could not be accepted by the commission since--apparently that some undetermined profits are included in its figures. As an without intent to .deceive--such prices were clearly too low, and. rep additional basis for criticism of the figures submitted in the majority resented only partial. payments for imported pig iron. Deductions from report, it should be observed that the data, pdmarily secured for 1924, American selling prices to importers were, however, available with have not been brought as near the immediate date of the report, through. respect to Indian invoices. On the other hand, German invoice prices, supplemental inquiries, as the law contemplates, efficient inquiry reason as well as other invoice data, were ·deemed suitable evidence in estimat ably requires, and a more comprehensive investigation would have ing German costs o! production, permitted. From this review, which the majority report does not contest, it is 4. The domestic costs of production data employed by the Tarilf Com apparent that the commission's inferences do not present ex(l.ct foreign mission in its pig-iron investigation somewhat understate the essential costs. Exceptionally confirmatory evidence is alforded in this respect competitive strength of the pig-iron industry in the United States, since by a finding of the United States Treasury Department, published on there is a present tendency toward integration with by-product coke J"anuary 29, 1927-subsequent to the original completion and approval ovens of new plants making merchant iron, and toward the gradual of the pig-iron report-which, in fact, necessitated last-moment changed elimination of older plants not so advantageously located, the costs of recitals in the text of that report. The finding of the Treasury Depart which, however, were included for 1924. In fairness to the report it ment is one of dumping from Germany, and indicates that Germany is must, of course, be noted that the new plants referred to were not in at present delivering pig iron in the United States at prices so plainly operation in 1924 and that their presumably lower production costs were, . below fair foreign prices or production costs as to invite the imposition therefore, not reflected in the commission's cost data. of antidumping penalties. These several suggestions call for some amplification. Indeed, if LIMITATIONS AFFECTING USE OF INVOICE OR SIMILAR FOREIGN PRICES practicable within the reasonable limits of this separate statement, there IN PLACE OF ACTUAL PRODUCTION COSTS sbould have been included in the present discussion another far-reaching, In the Tariff Commission's ninth annual report to the Congress (pp. open question, which is, however, not peculiar to the pig-iron industry, 17, 18) the disposition of. some members of the commission to dispense na~ely, whether under the provisions of section 315 so localized a region with foreign field work, as has now been done in the pig-iron investiga as New York City may fairly be considered the principal competing tion, was stated in a paragraph, which suggested to the Congress the market in the United States. Suffice it to say that in the judgment of desirability. ot clarifying section 315 by legislation amending it, in view the undersigned such a narrowing of the principal competing market in of the legal question presented, and further indicated that previously the present investigation fails to meet the equalizing purposes of the law. the comriussion only resorted to secondary evidence when foreign costs I. NOVEL ASCERTAINMENT OF FOREIGN COSTS BY INFERENCE, WITHOUT could not be directly ascertained. Tbe paragraph follows : FOREIGN FIELD WORK " It is quite possible, of course, that in some instances the commis In the pig-iron investigation the majority of the commission-partly sion may be unable to obtain foreign costs directly from the books of in the belief that such a course is permissible under the law, partly the · producers even under a guaranty that the individual figures will to test the legal question, and partly for reasons of economy-decided not be disclosed. How, then, does the matter stand? Clearly, the to dispense with foreign field work and to rely for its conclusions on operation of the statute can not be frustrated by the refusal of inter inferences from such secondary evidence of foreign costs as it might ested parties to furnish the information required for its application. obtain in the United States. In its previous reports under section 315 The general view in the commission, therefore, has been that where the commission has generally proceeded on the assumption that the foreign costs can not be directly ascertained other relevant and mate Congress intended that changes in rates of duties pursuant to that sec rial evidence, having substantial probative value, may be resorted to tion should follow, so far as practicable, direct investigations of costs for the purpose of arriving at costs of production. ~cting upon thiq in both the United States and foreign fields. For example, in the com view, the commission in certain instances has used invoice prices of mission's seventh annual ·report to _the Congress-the earliest following imports as reasonable evidence of at least the foreign marginal cost. the enactment of section 315---this assumption was obvious. In that Where the difference thus indicated appears to be greater than the report the commission (pp. 39--40) emphasiZed the fact that its regula maximum increase possible under the statute, the commission has re tions provided for domestic ·and foreign field work, and that its care: ported th~ facts as indicating that the cost difference n~ssary for the fully prepared schedules were to become "the· basis of the intensive application of section 315 is sufficiently shown by a comparison o.f the cost-of-production inquiries requisite for the ascertainment of domestic invoice prices of the foreign article with the ascertained costs of pro and foreign costs." It was there further pointed out that, while in duction of the domestic article. In such cases it becomes immaterial foreign field work, cost data have in instances been refused, and in other how far the foreign cost may be actually lower than the foreign invoice instances data have been withheld, "the fundamental elements of the price. Question has been raised whether this method can be employed price and cost of raw material, wages, and estimates of overhead ex when the apparent differenee between foreign invoice prices and domes penses are usually obtained." In lts eighth annual report (p. 8) the tic cost is less than the maximum increase possible under the statute. commission again stressed the importance of such field work by referring In that event, cost being commonly less than price, it would be neces " to its primary task of securing exact cost data.'' In thus construing ~Y to ascertain bow much less the foreign cost is than the foreign its new duties, the commission seemingly recognized the fact that the invoice price in order to admit of a complete application of the statute. expression " costs of production," as used in section 3,15, has an histori To do this the commission must have authority to proceed, by means of cal background which aids in interpreting its significance ; that not with proper deductions and allowances, from foreign invoice price toward the out reason subdivision (c) of that section refers to the obligation to ascertainment of the foreign production cost. This authority, regarded consider "wages, costs of material, and other items in cost of produc by some o! the commission as inherent in the performance of its statu tion " ; and that the section as a whole was doubtless designed to pro tory functions, having been drawn in question, it would seem advisable mote the assembling of exact cost data, both for the immediate use of that the matter should be detln.itely settled by declaratory legislation." the Preaident in proclaiming changes in rates of duty, and for the The foregoing recommendation-repeated by the commission in its ultimate use of the Congress when called upon to undertake further tenth annual report-was really designed to invite a clear legislative tarilf revisions. declaration, one way or another, of the congressional intent as em It is true that in certain investigations under section 315--for exam ;bodied in the present language of s~ction 315, in advance o.t. an attempt ple, sodium nitrite, barium dioxide, and oxalic acid-the difficulties to decid~as the majority report now for the first time does-the encountered abroad through partial or complete retu.sals of information important question w·hetber invoice prices are reasonably capable of have at times compelled the commission to resort to estimates of for- revealing sufficiently accurate foreign costs of production for comparison CONGRESS! ON AL RECORD-SEN ATE NOVEMBER 5390 I 9 with domestic costs. In view of this action of the ma.jority of the competing country abroad than actually prevailed. In another out commission it now appears unavoidably necessary to consider certain standing industry a certain joint product was found to be, if anything, uses and abuses to whkh invoice prices, as an indication of production more important to certain foreign producers than the particular product costs, are subject under investigation. With respect to that joint product relatively high The extreme care with which any substitution of such secondary for foreign costs were incurred, due to the special treatment given it by the primary evidence should be sanctioned by an investigational body which manufacturers of the joint product. Such higher costs were, however, aims to act scientifically is outlined, rather than discussed, in the compensated for by higher prices received from the sale of that joint following enumeration of critical reasons : product. But this complicated situation could not possibly .have been (1) Subdivision (c) of section 315 of the tarit'l act of 1922 makes understood from any mere scrutiny of invoice prices. In another in mandatory the consideration, so .far as practicable, of all advantages vestigation conducted by the commission inquiries finally revealed that and disadvantages in competition, including the items in costs of no genuine invoice values existed. In that situation the Treasury De production, as technically known, in order to permit the equalization partment, in order to determine the dutiable value of the imported in the principal markets of the United States of the comparative costs article, ultimately established a dutiable value in excess of foreign pro- of articles produced here and in the principal competing country. Re duction costs. sort, therefore, to inferences drawn from invoice prices, however care (7) Finally, there are persuasive reasons for supposing that various fully safeguarded, in place of the full range of economic information invoice prices are at times subject to not easily ascertainable manipu ascertainable through foreign field work, must fall far short of the lation by foreign manufacturers or shippers. In .such cases, of course, statute's purpose. In other words, section 315 read as it must be with the emphasis already laid on the necessity for a normal relation between due regard for all its provisions, including those of subdivision (c), invoice prices and production costs becomes particularly vital. has in contemplation a far more searching compilation of statistically Without further extending the list of possible limitations affecting ascertainable foreign cost data, including regard for labor, materials, the serviceability of foreign invoice prices, as evidence of exact pro and efficiency of organization and production, than any mere inference duction costs, it is submitted that enough has been said to give pause from foreign prices can conceivably alford. To restrict the commis. to the ready and unchecked substitution of such data, even with pos sion's evidence of foreign costs to such inferences is, in other words, sible additions or deducti.ons, t'or basic and directly ascertained produc to revive, with less wari·ant, a narrow construction of the expression tion costs. of " costs of production," analogous (except that transportation will II. GERMANY, NOT INDIA, THE PRINCIPAL COMPETING COUNTRY remain included) to the view which some members of the Tarilr Com Under the provisions of section 315, it is assumed that changes 1n mission contended for prior to the ruling of the Attorney General of rates of duty are required to be based on the proclaimed finding that a February 2, ~926. That opinion held, in effect, that determinable given country is-not was, nor is likely to be--the principal competing advantages and disadvantages in competition must be given due regard country at the time of the proclamation. Presumably the law does not on both sides of the cost comparison. sanction the finding apparently entered in this investigation, that, be (2) That invoice prices such as the present report has used in the cause in 1924, when domestic pig-iron costs were secured, British India case of Germany, 01' the similar derived prices as employed with re was, it therefore continues to. be, the principal competing country; If spect to India, may fail to show normal foreign production costs is the law applied, as heretofore customa.rily construed, to the present well illustrated by the United States Treasury Department finding competitive situation, it is difficult to understand the finding giving of dumping from Germany, previously mentioned, issued on January British India at this time first place with respect to competitive im 29, 1927. No such finding, has yet been made with respect to Indian ports of iron in pigs. Table No. 7, page 8, of the commission's report, pig it·on, but it remains possible that at some future time fu:rther discloses that, while in 1924 British India was the principal compet information may lead to like findings applicable there. In this con ing country, tested by quantity of imports, and Great Britain the prin nection, as already stated, the commission noticed (Report, p. 18) that cipal competing countr;¥, value considered, in 1925 British India by a 1n 1924 British Indian pig iron was invoiced at absurdly low figures, substantial margin was the principal competing country, measured by which recorded only partial payments instead of the entire foreign both quantity and value, and for the first 10 months of 1926, Germany price. In the light of such circumstances, can it be said that infel" haB unquestionably been the principal competing country, whether ences as to basic costs, derived from invoices and similar prices, are judged by value or by quantity of imports. Granted these established dependably comparable with actual production . costs obtained and facts, it does not suffice, for the purposes of an accurate present report, checked at first hand? It is evident that, if invoice prices are abnormal, to deal with such a situation as the majority report does, by stating the industry tends to either unusual profits or losses, rendering highly that it is immaterial whether Germany or British India be regarded difficult the appraisement of its essential competitive strength. as the principal competing country. The inaccurate finding remains (3) The present investigation demonstrates that importers and for unscientific, even though the recommended rate to be proclaimed is eign producers have more or less confidential business relations, particu unatl'ected by the inaccuracy. larly with respect to pig iron imported from British India. Obviously Should the argument be advanced that the purposes of section 315 under such circumstances the usefulness of foreign invoice prices, or may easily be defeated if, at about the time of the commission's report, .similar derived prices, as evidence of exact foreign cost is much a shift occurs among the countries of principal competition, the answer ·restricted. is clear. Section 315, by di-recting the investigation of production ( 4) Invoice and similar derived prices, if they bear their normal cost in "competing foreign countries "-although the changed rate relation to production costs, include an element of profit. To elimi must be based on a comparison of costs in the United States and the nate this profit accurately or other than arbitrarily ts a task of extreme "principal competing country "-manifestly had in view the possibility difficulty except through direct cost inquiries. of such changing competition as the pig-iron report shows. The law, (5) A highly significant limitation affecting the use of invoice and therefore, provides for the accumulation of sufficiently varied cost similar price data is found in the surprising assumption that it is only data to permit an adjustment of the final equalizing rate on the basis important to consider the particular types of goods being imported of the final facts as to principal competition. To assume for con at the time when the commission's investigations are in progress. If venience that because an investigation was made two or three years this view be accepted, the tariff-changing standard in section 315 may ago, the President must accept as the principal competitor the country be employed to exclude either from importation or, at least, from the then so disclosed, regardless of substantial changes since, and may cost comparison all other similar competitive articles produced in the ignore the present principal competing country in . the presidential principal competing country abroad, which, possibly for temporary proclamation, is, to say the least, to deal indifferently and negligently reasons of one sort or another, ar(t at the time of the ·investigation not with the unambiguous provisions of the law. being imported into the United States. Cleal'ly a field -investigation of foreign costs might conceivably discover such similar articles, and for III. COST INSUFFICIENTLY INFERRED FROM INVOICE OR SIMILAR PRICES sufficient reasons might add the production costs of such articles to The careful argument of the majority of the commission in support the data to be considered in the ultimate cost comparison. Certainly ot the use of invoice and other similar information with respect to the costs of such similar nonimported but competitive articles should foreign prices (Report, pp. 23-26) stresses the necessity tor determin Il()t, without adequate reasons, be barred from the cost comparison. ing an exact foreign-cost figure for comparison with the final domestic (6) The commission's expetience in foreign investigation has uncov cost. It is decidedly apparent, however, that this part of the findings, ered certain enlightening facts with respect to some foreign invoice even granting for the moment the underlying assumptions, falls short price figures. Some such facts should be recorded as illustrating the of complete accuracy. In fact, it should be manifest that the Taritl' doubts which attach to the prima facie showing of invoice values. In Commission is not in a position to calculate from the importers' sell one important industry the commission's investigation disclosed that the ing prices of Indian pig iron, by making deductions, an exact Indian invoice prices vary with the different countries to which the manufac production cost of $13.36 per long ton. On the contrary, it is believed tured articles were being exported, prices charged to the United States evident that all the commission may reasonably infer from such selling being highest ; those charged to the foreign home market being lowest. prices is the conclusion that Indian production costs presumably do not Under such circumstances the use of the foreign invoice prices alone exceed a specified amount. Accordingly the exact differences in costs would have indicated higher money- production costs in the principal found in paragraph 4 (b) of the majority's concluding summary lack 1929 CONGRESSIONAL RECORD--SENATE 5391 the precision of statement, without which they are left somewhat open not compete with the Chinese. I will not take up the time· of to the charge of being inadequately considered.· the Senate to give the . figures showing the relative cost of IV. CHANGING COMPETITIVE CONDITIONS mining this ore in China and mining it in the several States of In the majority report which may possibly be re!erred to hereafter the Union. as more or less settling certain previously disputed questions with Mr. FLETCHER. Mr. President, will the Senator state what respect to competitive conditions, it is remarkable to find no reference the duty \mder the existing law is? to the decline in importance of older merchant furnaces, the costs of Mr. SHORTRIDGE. Forty-five cents. Tl1e House committee - many of which have been included in the present investigation, and _raised it to 50 cents. The Senate Finance Committee amended no discus ion of the tendency toward the construction of new plants in it as indicated, reducing the rate to 45 cents. more advantageous locations and their integration with such enter It may be interesting to state that we import from China prises as coke and gas manufacture. (Has Merchant Pig Iron Become from 2,800 to 3,500 tons of this ore per year, and we have been By-Product? E. C. Kreutzberg, Iron and Trade Review, January 6, 1927, able under existing conditions to produce in America some L200 p. 37. See also, by the same writeT: Operators of Merchant Blast tons per year. Gh·en this add_ed protection we can increase Furnaces in the East Change Tactics to Meet New Economic Conditions, our American production, and it will be of advantage, of course, Iron and Trade Review, January 7, 1926, p. 60.) primarily to those interested in the mining of this ore, and I The effect of ignoring, as the majority report does, this industrial think !.can show that the proposed increase would not be mate change is in a measure to minimize the real competitive strength of the rially or at all injurious to any other American industry. pig-iron industry in the United States and somewhat to exaggerate the Mr. REED. Mr. President, .will the Senator yield? present pressure of foreign competiti~n. In other respects, also, that Mr. SHORTRIDGE. I yield. report might well have emphasized certain definite advantages enjoyed Mr. REED. It seems to me this is a matter of so much by the domestic industry in the domestic market, especially those aris importance that it is a pity to have the Senator's remarks deliv-_ ing from prompt and dependable deliveries and efficient producing and ered with so few Senators in the Senate. So I would like to ask the Senator if he would yield to me to make a point of no selling organizations. quorum? EDWARD P. COSTIGAN, Oommissioner. Mr. JONES. Mr. President, I wish to make a parliamentary EXECUTIVE MESSAGES REFERRED inquiry.. It was stated a while ago, as I understood it, that, be The PRESIDING OFFICER laid before the Senate sundry ginning with Schedule 4, we have an agreement under which executive messages from the President of the United States, when the committee amendments were disposed of in any sched ule individual amendments might be offered. I did not know 1 which were referred to the appropriate committees. that we had entered into an agreement of that kind. I know REVISION OF THE TARIFF it was ~ggested.. I have no o-bjection to an agreement like that, The Senate, as in Committee of the Whole, resumed the con but I want to know whether such a unanimous-consent agree sideration of the bill (H. R. 2667) to provide revenue, to regu ment has been entered into. late commerce with foreign countries, to encourage the industries The PRESIDING OFFICER. The Chair is informed that of the United States, to protect American labor, and for other · there has been no formal presentation of such an agreement. purposes. Mr. JONES.. That is what I understood. Mr. HARRISON. Mr. President, I suggest the absence of a Mr. BARKLEY. I understood that when the request was quorum. made that the rule should apply to all schedules it was sug The PRESIDING OFFICER. The clerk will call the roll. gested it should be confined to the first three, but that after The legislative clerk called the roll, and the following Senators those three schedules had been completed we would agree to answered to their names : the rule as first proposed. Barkley Fletcher McKellar Steiwer Mr. JONES. I understood that; but I did not understand Black Frazier Norbeck Stephens that the ..agreement had been entered into. I am perfectly will Blaine George Norris Swanson Blease Glass Nye Thomas, Idaho ing to have that agreement made, but I did not understand it Borah Gotr Oddie Th{)mas, Okla. had been entered into. Bratton Harris Overman Townsend Mr. REED. Mr. President, I renew my suggestion of the Brock Harrison Phipps Trammell Brookhart Hastings Pittman Vandenberg absence of a quorum. :Broussard Hawes Ransdell Wagner The PRESIDING OFFICER. Does the SenJ!tor from Cali- Capper Hayden Reed Walcott fornia yield for that purpose? Connally Hebert Schall Walsh, Mont. Couzens Hetlin Sheppard Waterman Mr. SHORTRIDGE. I yield. Cutting Howell Shortridge Wheeler The PRESIDING OFFICER. The clerk will call the roll. Dale Johnson Simmons The legislative clerk called the roll, and the following Senators Deneen Jones Smoot Fess Kendrick Steck answered to their names : Barkley Gotr / Norris Smoot Mr. BLAINE. I desire to announce that my colleague [Mr. Black Hale Oddie Steck LA FoLLETTE] is unavoidably absent. Blaine Harris Patterson Steiwer Blease Hayden Pine Swanson The PRESIDING OFFICER. Sixty-one Senators having an Borah Hebert Pittman Thomas, Okla. swered to their names, a quorum is present. Will the .Senator Bratton Hefiin Ransdell Vandenberg from Utah indicate the amendment he desires to have taken up Brock Howell Reed Wagner Connally Johnson Schall Walsh, Mont. now? Fess - Jones Sheppard Waterman Mr. SMOOT. Mr. President, the first amendment in Schedule Fletcher Kendrick Shortridge 3 that was passed over is found on page 57, line 4, "tungsten George Norbeck Simmons ore or concentrates." Mr. SCHALL. I would like the REcoRD to show that my col The PRESIDING OFFICER. The clerk will report the league [Mr. SHIPSTEAD) is ill. amendment. The PRESIDING OFFICER. Forty-two Senators have an The LEGISLATIVE CLER.K. On page 57, line 4, the committee swered to their names. A quorum is not present. proposes to strike out " 50 cents " and to insert in lieu thereof RECESS "45 cents," so as to read: Mr. SMOOT. Mr. President, evidently Senators do not desire (b) Tungsten ore or concentrates, 45 cents per pound on the metallic to work on Saturday afternoon, no quorum being present at this tungsten contained therein. time. I ask that the order of the Senate may be complied with Mr. SHORTRIDGE. 1\lr. President, I will make a statement and that we take a recess until Monday morning at 10 o'clock. about this matter in a very few words. With great respect for Thereupon (at 1 o'clock and 5 minutes p. m.) the Senate, the Finance Committee, I think it fell into error when not under the order previously entered, took a recess until Monday, agreeing with the House, fixing the duty at 50 cents per pound November 11, 1929, at 10 o'clock a. m. on the metallic tungsten contained in tungsten ore. It Will be seen, on line 4, page 57, that the· committee reduced it to 45 cents. NOMINATIONS I beg to remind Senators that this is a mining product and Ea:ecutive rwminations received by the Senate November 9 that the States of South Dakota, Colorado, Arizona, Nevada, (legislative day of October 30), 19~9 New Mexico, California, Utah, Washington, Missouri, and prob APPOINTMENTS, BY TRANSFER, IN THE ARMY ably some other States, have deposits of this ore within their borders. TO FIELD .ABTILLERY Our only competitor is China. For reasons which are per Second Lieut. Edwin Lynds J"ohnson, Infantry, with r!lnk fectly manifest, known to Senators, the American miner can 'from June 12, 1925. 5392 CONGRESSIONAL RECORD-SEN~ttTE NOVEMBER 9 TO AIR CORPS Second Lieut. Robert Falligant Travis, Field Artillery (de Second Lieut. Albert Lea Alexander, jr., Corps of Engineers tailed in Air Corps), with rank from June 9, 1928. (detailed in Air Corps) , with rank from June 9, 1928. Second Lieut. William Henry Tunner, Field Artillery (de Second Lieut. Forrest Gordon Allen, Infantry (detailed in Air tailed in Air Corps), with rank from June 9, 1928. Corps), with rank from June 9, 1928. .second Lieut. Robert Williams Warren, Infantry (detailed in Second Lieut. Alvord VanPatten Anderson, jr., Cavalry (de A1r Corps), with rank from June 9, 1928. tailed in Air Corps), with rank from June 9, 1928. Second Lieut. Harry Edgar Wilson, Infantry (detailed in Second Lieut. Frederick Lewis Anderson, jr., Cavalry (de Air Corps), with rank from June 9, 1928. tailed in Air Corps), with rank from June 9, 1928. Second Lieut. Roscoe Charles Wilson, Field Artillery detailed Second Lieut. Samuel Egbert Anderson, Coast Artillery Corps in Air Corps), with rank from June 9, 1928. ' (detailed in Air Corps), with rank from June 9, 1928. · Second Lieut. Emmett Felix Yost, Infantry (detailed in Air Second Lieut. George Raymond Bienfang, Field Artillery (de Corps), with rank from June 9, 1928. tailed in Air Corps)", with rank from June 9, 1928. PROMOTIONS IN THE ARMY Second Lieut. Bryant LeMaire Boatner, Field Artillery (de To be colonels tailed in Air Corp ) , with rank from June 9, 1928. Second Lieut. Samuel Robert Brentnall, Field Artillery (de Lieut. Col. William Remsen Taylor, Cavalry, from Novem· tailed in .Air Corps), with rank from June 9, 1928. ber 2, 1929. · Second Lieut. Harold Brown, Infantry (detailed in Air Lieut. Col. John Patrick Hasson, Quartermaster Corps, from Corps), with rank from June 9, 1928. November 4, 1929. Second Lieut. James Wilson Brown, jr., Infantry (detailed in To be lieutenant colonels Air Corps), with rank from June 9, 1928. Maj. Everett Darius Barlow, Quartermaster Corps, from Oc- Second Lieut. Joseph Arthur Bulger, Coast Artillery Corps tober 31, 1929. (detailed in Air Corps), with rank from June 9, 1928. Maj. Felix Emmanuelli, Infantry, from October 31, 1929. Second Lieut. Howard Graham Bunker, Coast Artillery Corps Maj. PascW:ll Lopez, Infantry, from November 2 1929. (detailed in Air Corps), with rank from June 9, 1928. Maj. William Albert Johnson, Corps of Engine~rs, from No- Second Lieut. Frank Jerdone CQleman, Signal Corps (detailed vember 4, 1929. · in Air Corps), with rank from June 9, 1928. To be majors Second Lieut. Robert James Dwyer, Field Artillery (detailed Capt. Edwin Mack Scott, Quartermaster Corps, from Octo in Air Corps), with rank from June 9, 1928. ber 31, 1929. Second Lieut. Frank Fort Everest, j'r., Field Artillery (de · Capt. Paul James Dowling, Infantry, from October 31, 1929. tailed in Air Corps), with rank from June 9, 1928. Capt. Otis Porter, Cavalry, from November 2, 1929. Second Lieut. Nathan Bedford Forrest, jr., Cavalry (detailed Capt. Hermann Charles Dempewolf, Infantry, from Novem in Air Corps), with rank from June 9, 1928. ber 4, 1929. Second Lieut. Charles Grant Goodrich, Field Artillery (de PROMOTIONS IN THE NAVY tailed in Air Corps), with rank from June 9, 1928. Second Lieut. NoiTis Brown Harbold, Field Artillery (de Naval Constructor George H. Rock to be Chief Constructor tailed in Air Corps), with rank from June 9, 1928. and Chief of the Bureau of Construction and Repair in the De Second Lieut. Robert Scott Israel, jr., Field Artillery (de partment of the Navy, with the rank of rear admiral, for a term tailed in Air Corps), with rank from June 9, 1928. of four years. Second Lieut. Paul Harold Johnston, Coast Artillery Corps Commander Herbert E. Kays to be a captain in the Navy (detailed in Air Corps), with rank from June 9, 1928. from the 13th day of March, 1929. Second Lieut. August Walter Kissner, Infantry (detailed in Lieut. Commander James B. Will to b.e a commander in the Air Corps), with 'rank from June 9, 1928. Navy from the lith day of October, 1929. Second Lieut. Ralph Edward Koon, Cavalry (detailed in Air Lieut. Francis A. Smith to be a lieutenant commander in the Corps), with rank from June 9, 1928. Navy from the 1st day of July, 1929. Second Lieut. Stuart Glover McLennan, Field Artillery (de Lieut. Douglas A. Spencer to be a lieutenant commander in tailed in Air Corps), with rank from June 9, 1928. the Navy from the 1st day of October, 1929. Second Lieut. Alfred Rockwood Maxwell, Coast Artillery Lieut. Baroltl F. Ely to be a lieutenant commander in the Corps (detailed in Air Corps) , with rank from June 9, 1928. Navy from the 11th day of Octobet·, 1929. Second Lieut. Arthur William Meehan, Infantry (detailed in Lieut. (Junior Grade) Whitaker F. Riggs, jr., to be a lieu Air Corps), with rank from June 9, 1928. tenant in the Navy from the 6th day of June, 1929. Second Lieut. John Stewart Mills, Field Artillery (detailed Lieut. (Junior Grade) William S. Campbell to be a lieutenant in Air Corps), with rank from June 9, 1928. in the Navy from the 1st day of July, 1929. Second Lieut. John Jordan ~rrow, Coast Artillery Corps Lieut. (Junior Grade) George W. Snyder, 3d to be a lieu {detailed in Air Corps), with ra from June 9, 1928. tenant in the Navy from the 2d day of August, 1929. Second Lieut. George Warren Iundy, Field Artillery (de Lieut. (Junior Grade) Vernon Huber to be a lieutenant in the tailed in Air Corps), with rank from June 9, 1928. Navy from the 22d day of October, 1929. Second Lieut. John Thomas Murtha, jr., Infantry (detailed Lieut. (Junior Grade) Peter J. Neimo to be a lieutenant in in Ai.r Corps), with rank from June 9, 1928. the Navy from the 1st day of November, 1929. Second Lieut. Thayer Stevens Olds, Coast Artillery Corps Lieut. (Junior Grade) Boward B. Hutchinson to be a lieu (detailed in Air Corps), with rank from June 9, 1928. tenant in the Navy from the 4tn day of November 1929. Second Lieut. James Francis Olive, jr., Infantry (detailed in Lieut. (Junior Grade) Horace B. Butterfield to' be a lieuten Air Corps), with rank from June 9, 1928. ant in the Navy from the 8th day of November, 1929. Second Lieut. Roger Maxwell Ramey, Infantry (detailed in Lieut. (Junior Grade) John P. Cady to be a lieutenant in the Air Corps), with rank from .June 9, 1928. Navy from the lOth day of November, 1929. Second Lieut. Allen Wilson Reed, Infantry (detailed in Air The following-named ensigns to be lieutenants (junior grade) Corps), with rank from June 9, 1928. in the Navy from the 3d day of June, 1929: Second Lieut. John Alexander Samford, Field Artillery (de Samuel M. Tucker. tailed in Air Corps), with rank from June 9, 1928. John H. Simpson. Second Lieut. LaVerne George Saunders, Infantry (detailed John D. Sweeney. in Air Corps), with rank from June 9, 1928. Medical Director Norman J. Blackwood to be a medical Second Lieut. Edgar Alexand·er Sirmyer, jr., Infantry {de director in the Navy, with the rank of rear admiral, from the tailed in Air Corps), with rank from June 9, 1928. 11th day of February, 1921. Second Lieut. Frank Leroy Skeldon, Infantry (detailed in Medical Inspector Joseph A. Biello to be a medical directol' Air Corps), with rank from June 9, 1928. in tbe Navy, with the rank of captain, from tbe 1st day of July, Second Lieut. George Ferrow Smith, Infantry (detailed in 1929. . Air Corps), with rank from June 9, 1928. The following-named pharmacists to be chief pharmacists in Second Lieut. Thomas Webster Steed, Infantry (detailed in the Navy, to rank with but after ensign, from the 5th day of Air Corps), with rank from June 9, 1928. November, 1929: Second Lieut. Robert Frederick Tate, Cavalry (detailed in Daniel W. Heagy. Frederick 0 . Ball. Air Corps), >litb rank from June 9, 1928. Leo A. Duncan. John P. T. Bennett. Second Lieut. Robert Kindler Taylor, Infantry (detailed in Robert N. Cheetham. Jefferson 0. Forte. Ail: Corps), with rank from June 9, 1928. Edmond D. Harrison. 1\Iartin Buff.