1933 CONGRESSIONAL RECORD-SENATE 901 palities to refinance debts at lower rates of interest, to deal 2, regular session, Eleventh Legislature, State of Arizona., entitled " Relating to the Grand Canyon National Game Preserve ", all of with holders of city bonds with a view of cutting the in­ which is shown by the original engrossed copy on file 1n this terest thereon, and to permit cities to borrow from a govern­ department. mental agency at rates of interest lower than existing rates; In witness whereof I have hereunto set my hand and affixed to the Committee on Banking and Currency. the great seal of the State of Arizona. Done at Phoenix, the capital, this 9th day of March A.D. 1933. 203. Also, petition of Edmond C. Fletcher, requesting that [SEAL} JAMES H. KERBY, the House of Representatives prefer articles of impeachment Secretary of State. against Hon. Fenton Whitlock Booth, Chief Justice of the House Memorial 2, relating to the Grand Canyon National Game Court of Claims of the United States; to the Committee on Preserve the Judiciary. To tne President and the Congress of the United States: Your memorialist, the House of Representatives of the State of Arizona, respectfully represents: SENATE In northern Arizona, north and west of the Grand Canyon and within that large area of public land known as the Kaibab TUESDAY, MARCH 28, 1933 National Forest, is the Grand Canyon National Game Preserve, almost 1,000,000 acres in extent. (Legislative day of Monday, Mar. 13, 1933) The said Grand Canyon_ National Game Preserve was created under the authority of the act of Congress approved June 29, The Senate met at 12 o'clock meridian, on the expiration 1906, by successive proclamations of the President dated Novem­ of the recess. ber 28, 1906, June 23, 19'08, and June 3, 1909. Mr. ROBINSON of Arkansas. Mr. President, I suggest Said Grand Canyon National Game Preserve was created while Arizona was yet a Territory and under Federal supervision for the absence of a quorum. the purpose of protecting and fostering the wild life within the The VICE PRESIDENT. The clerk will call the roll. boundaries of the area set aside, and it was a beneficent and The Chief Clerk called the roll, and the following Senators beneficial act, resulting in the increase of game until the area has become one of the best-stocked game preserves in the Nation. answered to their names: During the territorial period and until the State o! Arizona Adams Costigan La Follette Robinson, Ark. became properly prepared to protect its wild game the arrange­ Ashurst Couzens Lewis Ro blnson, Ind. ment was most satisfactory, and has the euthusiastic approval Austln Dickinson Logan Russell of the citizens of this State. Bachman Dieterich Lonergan Schall Bailey Dill Long Sheppard Arizona has developed and for some years has had a creditable Bankhead Duffy McAdoo Shipstead body of laws designed for the protection and fostering of the wild Barbour Erickson McCarran Smith life of the State and a department of government known as the Barkley Fess McGill Steiwer " State game and fish commission ", which 1s well able to and does Black Fletcher McKellar stephens efiiciently administer said laws and is able and prepared to ade­ Bone Frazier McNary Thomas, Okla. quately administer them within the said area. Borah George Metcalf Thomas, Utah However capable and eftlcient the administration of the area Brown Goldsborough Murphy Townsend may be under Federal officers and employees, the dual adminis­ Bulow Gore Neely Trammell tration thereof, under the laws of the United States by the Byrd Hale Norbeck Tydings o:mcers and employees thereof and also under the laws of Arizona Byrnes Harrison Norris Vandenberg by its omcers and employees, is altogether undesirable and un­ Capper Hatfield Nye Van Nuys Caraway Hayden Overton Wagner satisfactory, entirely unnecessary, and unproductive of good Carey Hebert Patterson Walcott results. Clark Johnson Pittman Walsh The area is splendidly stocked with wild life, particularly deer, Connally Kendrick Pope Wheeler and constitutes one of the principal resorts of Arizona sportsmen. Coolidge Keyes Reed White Arizona claims the right to administer the area with respect to Copeland Ktng Reynolds the protection of the wild life thereon in accordance with State law, for the reason that the State owns in its sovereign capacity Mr. REED. I announce that my colleague the junior as one of the natural resources of the State all of the wild life Senator from Pennsylvania [Mr. DAVIS] is still detained from within its borders. the Senate by illness. This announcement may stand for It would be highly beneficial to this State, and 1n no manner the day. or degree prejudicial to the interests of the Federal Government nor to the cause of wild-life protection, for the Federal Govern­ Mr. BYRD. I wish to announce that my colleague the ment to relinquish its jurisdiction over the said Grand Canyon senior Senator from Virginia [Mr. GLASS] is unavoidably National Game Preserve. detained. Wherefore your memorialist, the House of Representatives of the State of Arizona, respectfully urges that the President of the Mr. LEWIS. I wish to announce that the Senator from United States rescind the said proclamation by which the Grand Ohio [Mr. BULKLEY] and the Senator from New Mexico Canyon National Game Preserve was created, and that the Con­ [Mr. BRATTON J are necessarily absent. gress repeal the authority upon which the said proclamations Mr. HEBERT. I desire to announce that the Senator were based, upon condition that the State of Arizona by legisla­ tion or otherwise undertake to afford adequate protection to the from Vermont [Mr. DALE], the Senator from Delaware [Mr. Wild life of the said area. HASTINGS], the Senator from New Jersey [Mr. KEANJ, and And your memorialist will ever pray. the Senator from New Mexico [Mr. CuTTING] are necessarily Adopted by the house March 7, 1933. detained from the Senate. Received by the secretary of state March 7, 1933. The VICE PRESIDENT. Eighty-seven Senators having The VICE PRESIDENT also laid before the Senate the· answered to their names, a quorum is present. following resolution of the House of Representatives of the INVITATION TO THE INTERNATIONAL PARLIAMENTARY CONFERENCE State of Arizona, which was referred to the Committee on ON COMMERCE Commerce: The VICE PRESIDENT laid before the Senate a letter STATE OF ARIZONA, from the Secretary of State, transmitting copies of cor­ OFFICE OF THE SECRETARY. UNITED STATES OF .AMERICA, respondence relative to an invitation from the Secretary State of Arizona, ss: General of the International Parliamentary Conference on I, James H. Kerby, secretary of state, do hereby certify that the Commerce to the Congress to be represented at the eight­ within is a true. correct, and complete copy of House Resolution eenth plenary assembly of that organization at Rome, be­ 3, regular session, Eleventh Legislature, State of Arizona, entitled "Protesting the extension of certain Federal reserved areas within ginning on April 19, 1933, which, with the accompanying Arizona," all of which 1s shown by the original engrossed copy on papers, was referred to the Committee on Foreign Relations. file 1n this department. In witness whereof I have hereunto set my hand and afiixed PETITIONS AND MEMORIALS the great seal of the State of Arizona. Done at Phoenix, the capi­ The VICE PRESIDENT laid before the Senate the follow­ tal, this 9th day of March A.D. 1933. ing memorial of the House of Representatives of the state [SEAL] JAMES H. KERBY, Secretary of State. of Arizona, which was referred to the Committee on Agri­ House Resolution 3, protesting the extension of certain· Federal culture and Forestry: reserved areas within Arizona STATE OF ARizONA, To the honorable Senate and House of Representatives of the OFFICE OF THE SECRETARY. Congress of the United states of America in Congress assem­ UNITED STATES O.F AMERICA, bled: State of Arizona, ss: Your memorialist, the House of Representatives of the Eleventh I, James H. Kerby, secretary of state, do hereby certify that the Legislature of the State of Arizona in regular session convened within is a true, correct, and complete COPY. of House Memorial respectfully represents: 902 _CONGRESSIONAL RECORD-SENATE MARCH 28

Whereas the Supreme Court of the United States has decided STATE 0? ARizoNA, that the Colorado River is a navigable stream and that the Hoover OFFICE OP THE SECRETARY, Dam is being constructed for the purpose of improving naVigation; UNITED STATES 011' AMEluCA, and State of Arizcma, ss: Whereas the reservoir to be created by the dam w1ll extend up­ I, James H. Kerby, secretary o! state, do hereby certify that stream Within the State of Arizona 115 miles, permitting the the within is a true, correct, and complete copy of House Joint development of commerce between a heretofore inaccessible min- Memorial 13 of the regular session, eleventh legislature, State of eral district and railroad shipping points; and • Arizona, entitled "On the Allotment of Lands in the Colorado River Whereas the creation of this reservoir Will provide the oppor­ Indian Reservation and the Reclamation of the Said Lands", all of tunity to develop fishing; and which is shown by the original engrossed copy on file in this ·Whereas the people of Arizona,· in which is located more of the department. river affected by the creation of the Hoover Dam than all the other In witness whereof I have hereunto set my hand and affixed the States combined, desire that no more Federal restrictions be im­ great seal of the State of Arizona. Done at Phoenix, the capital, posed upon commerce and fishing on the Colorado than on other this 15th day of March AD. 1933. navigable streams in the United States of America; and [SEAL] JAMES H. KERBY, Whereas the creation of a national park of the area surrounding Secretary of State. this reservoir would enable Federal officials to prevent the develop­ House Joint Memorial 13, on the allotment of lands in the Colorado ment of commerce and fishing unless those applying for licenses would comply with the provisions of the Santa Fe compact that River Indian Reservation and the reclamation of the said lands are obnoxious to the State of Arizona, and with the rules and To the Senate and House of Representatives of the Congress of the regulations of the National Park Service: Now, therefore, be it United States of" America and the Honorable the Secretary of the Resolved, That we do hereby protest the creation of any Federal Interior, Washington, D.C.: park within Arizona in the vicinity of the Hoover Reservoir; and Your memorialist, the Eleventh Legislature of the State of Art­ be it further zona, respectfully represents- Resolved, That we request our Members of Congress to oppose The Colorado River Indian Reservation in Yuma County, Ariz., any further extensions of Federal reserved areas within Arizona embraces approximately 150,000 acres of highly fertile river-bottom unless the same shall be submitted to and approved by the Ari­ lands, splendidly adapted to the growing of general agriculturo.l zona State Legislature. products, and of rich mesa or high tablelands especially adapted Adopted by the house March 3, 1933. by reason of unusually favorable conditions of soil and climate, to Received by the secretary of state this 4th day of March 1933. the culture of citrus and other valuable fruits. The feasibility of the reclamation of this body of land by means The VICE PRESIDENT also laid before the Senate the of the diversion of water from the Colorado River has been well following joint memorial of the Legislature of the State of established by authoritative investigations conducted by engineers Arizona, which was referred to the Committee on Finance: and agents of the United States Government and of the State of Arizona. STATE OF ARIZONA, Exhaustive engineering Investigations conducted by the State OFFICE OF THE SECRETARY. land department of Arizona, with the permission of the Secretary UNITED STATES OF AMERICA, of the Interior, establish beyond reasonable doubt the existence of State of Arizona, ss: underground water resources, adequate in quantity and quality I, James H. Kerby, secretary of state, do hereby certify that the for the successful reclamation of the said lands, and the feasibility within is a true, correct, and complete copy of House Joint Memo­ of such reclamation, by means of pumping plants, by ind.ividual rial No. 16, entitled "Relating to Foreign Trade and Commerce", settlers or cooperative communities of settlers. wh.ich was passed by the Eleventh Legislature, State of Arizona, The reclamation and development of this splendid body of land, regular session, 1933. All of which is shown by the original en­ by either of the above plans, would provide homes and sustenance grossed_ copy on file in this department. for thousands of patriotic citizens, who today have no means of In witness whereof I have hereunto set my hand and affixed the livelihood, and Jobs for a large number of persons now unem­ great seal of the State of Arizona. Done at Phoenix, the capital, ployed. this 18th day of March A.D. 1933. The allotment of such of the lands embraced within the said (SEAL) JAMES H. KERBY, Indian reservation as may be needed by the Indians attached Secretary of State. thereto, and the opening of the remainder to settlement or sale, House Joint Memorial 16, relating to foreign trade and commerce would not only assist in bringing about the reclamation and settle­ ment of the land referred, and in relieving unemployment to an To the honorable President and the Congress of the United States: appreciable extent but would also be an act of long-deferred jus­ Your memorialist, the Eleventh Legislature of the State of tice to the town of Parker, which, though established by virtue of Arizona, in regular session cm;tvened, respectfully represents that-­ Federal a.ction and encouragement, finds itself, after many years Whereas the people of the United States are suffering from an of waiting, still surrounded by Indian lands and effectually cut off unprecedented era of unemployment, due largely to an almost from the development to which its natural resources entitle it. total lack of foreign commerce; and Wherefore, your memorialist, the Eleventh Legislature of the Whereas the reconstruction of the welfare and prosperity of the State of Arizona, respectfully but urgently prays that Congress people of the United States; the return of employment; the re­ provide by appropriate legislation for the reclamation of the said opening of our mines, mills, and factories; the reestablishment land, as a means of relieving unemployment, and of providing of markets for the products of our ranches, farms, and orchards homes and sustenance for worthy citizens, and that the Secretary depends largely upon our foreign _trade and commerce: of the Interior take action looking to the allotment to the Indians Now, therefore, your memorialist, the Eleventh Legislature of attached to the said Colorado Indian Reservation, of the lands the State of Arizona, does hereby respectfully endorse and com­ needed by them or for their use, and the restoration of the mend the efforts and intentions of our President, and of the remainder of said reservation or some considerable portion thereof Congress of the United States, to take immediate steps to read­ to entry under the United States land laws, or its subjection to just the European war debts, to the end that the first stone may sale under such terms and conditions, rules, and regulations, as . be laid in the founc1tion for the recovery of our foreign commerce will prove just to the Indians at present owning the said land and trade; and your memorialist prays that the effective date of and to prospective settlers, thus achieving in the fullest measure such readjustment be set for the earliest moment consistent with the beneficent purposes herein referred to. the best interest of our people and of our country. And your memorialist will ever pray. Passed the senate March 13, 1933. Approved March 11, 1933. Passed the house March 11, 1933. Approved 14th day of March 1933. The VICE PRESIDENT also laid before the Senate the Received by the secretary of state March 15, 1933. following memorial of the Legislature of the State of Ari­ The VICE PRESIDENT- also laid before the Senate a zona, which was referred to the Committee on Manufac­ memorial of the House of Representatives of the State of tures: Arizona, memorializing Congress to establish in Arizona STATE OF ARIZONA, facilities for the hospital treatment of tubercular and neuro­ OFFICE OF THE SECRETARY. UNITED STATFS OF AMERICA, psychiatric cases and to make appropriation of approximately State of Arizona, ss: $4,000,000 for such hospital treatment if veterans' benefits I, James H. Kerby, secretary of state, do hereby certify that the are to be reduced, which was referred to the Committee on within is a true, correct, and complete copy of House Memorial 1, regular session, Eleventh Legislature, State of Arizona, entit!ed: Finance. "Requesting Congress to Consider Legislation Requiring the China relief expedition surpluses persists--while visible supplies turn the operation of Whereas the Veterans of the Spanish War hold their thirty-fifth the law of supply and demand to the disadvantage of the pro­ annual national encampment in Los Angeles, Calif., beginning ducer. August 20 this year, the year celebrates the thirty-fifth anni­ The farmer, the fruitgrower, the trucker, can contribute noth­ versary of the important events of that war and its related cam­ ing but added complication to a sadly messed economic condition paigns, which wrote some of the most important history of the until their buying power is restored. United States; and A simple and seemingly practical, easily admintstered, inex­ Whereas history as available to the people of the United States, pensive means of accomplishing the restoration of agriculture is especially in the schools, has not given the accomplishments and suggested in the plan to require, by Federal legislation, that a.ll achievements of that service, and the tremendous benefits to the petroleum products that may be used as a. fuel in internal-com­ Nation, the pla-ce they deserve in the national hall of fame; and bustion engines shall be blended with a given percentage of ethyl Whereas the Spanish War was responsible for eliminating the alcohol, made from agricultural products grown within conti­ feeling of sectionalism between the North and the South that nental United States. had endured from the Civil War. It made the United States of The claim is made by authorities that the technical problems America united in fact as well as in name. The blue and the gray of such a plan have been solved; that the increased cost of motor fought together as brothers. Eighty-four percent of the armies fuel would be so little as to constitute a. small price to pay for the from the South were sons of Confederate veterans. Seventy-two return of agricultural and, therefore, of national prosperity; that percent of the armies from the North were sons of Union vet­ the demand for agricultural products from which ethyl alcohol erans. All were volunteers; former Confederate and Union chiefs could be produced would solve the problem of surpluses and vis­ o:fficered that army in fighting for a united Nation. That war Ible supplies and elevate farm prices to a. level which would make made the United States a. real world power. It made our flag buyers out of the producers and set the endless chain of industry respected in every land and on every sea; and to revolving. Wherea.s the value of those accomplishments cannot be meas­ The claims made are worth studying; if they are based upon ured in material terms. The world recognized the importance of demonstrable facts the plan is worth trying. It appears to hold the developments from that war long before they were recognized no peril; it holds out a substantial promise of great aid to the by our own people. All nations realized that in the welding of Nation's basic Industry. the forces of the North and the forces of the South a new nation Wherefore your memorialist prays that the Congress of the had been born, magnificent in purpose and invincible in power, United States give serious consideration to the claims which are that forever would be a power in world a.tfairs; and made for the proposed pla.n and enact legislation to carry it into Whereas that was 35 years ago. For years patriotic leaders of effect. the country have been planning a belated recognition of the value And your memorialist will ever pray. of the service rendered the Nation by the men of that war as a Adopted by the house March 6, 1933. fiftieth anniversary, golden jubilee, but it now seems that too Received by the secretary of state March 7, 1933. few of these veterans will remain alive for a semicentennial cele­ bration. Originally there were about 400,000 men in that service. The VICE PRESIDENT also laid before the Senate the More than half of them have already passed to the Great Beyond. following joint resolution of the Legislature of the State of Simple arithmetic will demonstrate how few will remain 15 years from now; and California, which was referred to the Committee on Mines Whereas lt is deemed fitting that this thirty-fifth national en­ and Mining: campment, held in the year of the Century of Progress Exposition, Senate Joint Resolution 17 when we are looking in retrospect at the achievements and accomplishments of the past hundred years, be taken as the Senate Joint Resolution 17, relative to memorializing and pe­ most propitious time to recognize nationally the service rendered titioning Congress to enact legislation subsidizing the discovery by those patriots and for setting up some lasting tribute to them of gold in the gold-mining sections of the United States that may be made part of the enduring historical record of the Whereas the United States is passing through a period of great Nation and the States from which they came; and unemployment and distress among the working people of this Whereas an honor scroll, graphically setting out the major country; and events of the Spanish War and related campaigns and the accom­ Whereas we are passing through a. financial crisis in the history plishments therefrom, together with the roll Spanish War vet­ of our country; and erans who distinguished themselves in that service, or later Whereas our great gold-producing areas have remained unde­ achieved prominence 1n public affairs, has been decided upon as veloped through these past many years; and the most fitting tribute at this time. A tribute that in original Whereas it would naturally benefit the United States 1f more and In replica ca.n be placed 1n the halls of the National Capitol, people were given an incentive to prospect and develop the gold­ the leading museums of the country, in the halls of the capitols bearing sections of our country, which gold-bearing sections are of every State in the Union, and in the palaces in the capitals still undeveloped to any great depth; and of Cuba, Puerto Rico, Hawaii, and the Philippines, as a perpetual Whereas during the Civil War period great relief to our stricken monument to those patriots, doing honor to the dead, giving the Nation was obtained by reason of the gold recovered from our survivors their flowers now rather than when they have pa.ssed gulches and riverbeds by the mere scratching and washing on the to their final reward, and at the same time preserving those surface of our gold-bearing veins; and flowers that posterity may be made more familiar with those Whereas the cost of mining has increased materially by reason glorious pages of national history and aid in keeping their mem­ of the fact that 1t is now necessary to mine beneath the surface ory green; and with modern equipment and machinery and at a higher cost of Whereas war ordinarily is not profitable to the nations en­ labor; and gaged, the Spanish War was an exception to this rule. The 400,000 Whereas it would materially better our standing as a Nation to men who served the colors in that war brought to the United conserve, protect, and increase our available gold reserves: Now, States possessions worth more than $6,000,000,000. To June 30, therefore, be lt 1930, more than $22,000,000,000 of business had come to the United States from these possessions, and the inflow continues at the rate Resolved by the Senate and the Assembly of the State of Cali­ of nearly a blllion dollars a year; and fornia jointly, That the Legislature of the State of California hereby memorializes and petitions Congress to enact legislation Whereas it is peculiarly fitting that this celebration and presen­ that it subsidize the production of gold by issuing to every pro­ tation of the tribute of a. grateful Nation to its warriors of long ducer of 200 ounces or less of primary gold per month a bond of ago be staged at the Los Angeles national encampment, because the value of $5 for each ounce thereof, said bonds to take the form it was a California regiment, the First Infantry, that had the honor of Government bonds bearing a low rate of interest and maturing to be the first unit of the United States Army ever to embark for 5 years from date of issuance thereof; and be it further service on foreign soil, it sailing from San Francisco on the City of Peking, bound for Manila, on May 23, 1898. All previous foreign Resolved, That a copy of this joint resolution be transmitted to military operations had been conducted by the Navy or the Marine the President of the United States, to the Vice President of the Corps. Likewise California was the ba.se for all of the operations United States, and to each Member of the Senate and House of in the Philippines and China during the more than 4 years of Representatives of the United States. the war and its related campaigns, and was more closely in touch The VICE PRESIDENT also laid before the Senate the with the war during those 4 years than any other State in the Union: Therefore be it following joint resolution of the Legislature of the State of Resolved by the Assembly and t7te Senate of the State of Cali­ California, which was referred to the Committee on Pensions: fornia, jointly, That the State of California does hereby extend a 904 CONGRESSIONAL RECORD-SENATE MARCH 28 most cordial welcome to the delegates and visitors of the United Whereas the business of our cities has been heavily curtailed by Spanish War Veterans, their auxiliaries, and affiliated organiza• the plight of agriculture and thousands of our laboring men have tions who will be present at the thirty-fifth national encamp­ been thrown out of employment: Therefore, be it ment; that the president of the Senate and tlle speaker of the Resolved by the senate (the house of representatives concurring assembly is hereby authorized to appoint a committee from these therein), That the Congress of the United States is urged to bodies to officially express this welcome on behalf of the State of speedily enact into law the measures for farm relief as now pro­ California; and be it further posed by President Roosevelt in special message of March 16, 1933, Resolved, That the Congress of the United States of America in order that agriculture and industry may be rehab111tated and and the legislatures of all of the States of the Union be, and are labor given employment; be it further hereby, memorialized to most heartily endorse and support the Resolved, That the secretary of state be, and is hereby, di­ program for what we believe to be a highly merited recognition of rected to transmit copies of this resolution to the President of a series of the most important events in the life of our country the United States, and to the Senate and to the House of Repre­ and of the services of that gallant body of volunteers who ans­ senatives of the United States, and to each of the Members of the wered the call to the colors, brought glory, solidarity, and power Kansas delegates therein. · to the Nation and credit to themselves; and be it further I hereby certify that the above concurrent resolution originated Resolved, That the secretary of state be and he is hereby di­ in the senate and passed that body March 17, 1933. rected to transmit, under the great seal of the State of California, CHAS. W. THOMPSON, copies of this resolution to the President and Vice President of PnW.dent of the Senate. the United States, to the Speaker of the House of Representatives, CLANIS W. NALLIS, to the chairman of the Committee on M.ilitary Affairs of each of the Secretary of the Senate. two Houses of Congress, to the Senators and Representatives from Passed the house March 21, 1933. California in Congress, to the governors and lieutenant governors of W. H. VERNON, each of the other 47 States of the United States, to the speakers Speaker of the House. · of the houses of representatives in the legislatures of each of these w. K. BISHOP, States, to the chairmen of the committee on military affai1·s of • Chief Clerk of the House. each of the two houses in the legislatures, to the national head­ The VICE PRESIDENT also laid before the Senate the quarters of the United Spanish War Veterans in Washington, D.C., and to the department headquarters of the Department of California, following joint resolution of the Legislature of the State of United Spanish War Veterans at Oakland, Calif., as evidence of Nevada, which was referred to the Committee on Agricul­ the wishes of the people of the sovereign State of California that ture and Forestry: the glowing deeds of these patriotic sons of the Nation be given the recognitiOn that their accomplishments merit; and be it STATE OF NEVADA, further Department of State, ss: W. Resolved, That the Governor of the State of California be, and he I, G. Greathouse, the duly elected, qualified, and acting sec­ is hereby, requested to appoint a commission of not less than 25 retary of state of the State of Nevada, do hereby c~rtify that the of the leading patriotic citizens of California, to be known as the foregoing is a true, full, and correct copy of the original Senate " Spanish War Commemoration Commission ", to aid in carrying Joint Resolution No. 21, introduced by Senator Tobin on March 9, into effect the program for a national tribute to the service of 1933, now on file and of record in this office. these veterans in accordance with the plan outlined in this reso­ In witness whereof I have hereunto set my hand and affixed lution; this commission to serve without pay but to be furnished, the great seal of state at my office in Carson City, Nev., this 22d if necessary, with office space in the buildings of the State of day of March, A.D. 1933. California in Sacramento, San Francisco, and Los Angeles as (SEAL] W. G. GREATHOUSE, headquarters for carrying out its work; and be it Secretary of State. Resolved, That we do hereby authorize and direct that such Senate· joint resolution memorializing Congress to grant to forest an honor scroll as may be devised for the occasion, setting forth users in the United States a moratorium of 2 years for the the important events of the Spanish War and its related campaigns payment of grazing fees for the year 1932, and to omit charges and the accomplishments therefrom, together with the names of for gr~zing fees for the year 1933 the men of that service who especially distinguished themselves Whereas our great national depression has imposed a blow upon or have since attained prominence in publlc affairs, be given a the livestock industry of the West that amounts to bankruptcy; proper place in the historical records of the State of California and and be displayed in proper places in the halls of the capitol build­ Whereas livestock owners in many instances cannot pay their ing at Sacramento and the State buildings in San Francisco and State and county taxes; and· Los Angeles as a perpetual monument to the gallant sons of Whereas many livestock owners are faced with the necessity of California who brought credit to our Commonwealth through holding their stock under fence and upon land without feed their sacrifices and their loyalty to the flag of our country. thereon, because of the present depression they cannot secure the FRANK F. MERRIAM, necessary funds to pay grazing fees; and President of the Senate. Whereas the possibility of securing the necessary funds through J. A. BEEK, any of the Government agencies would be too late to save the Secretary of the Senate. situation, and, if so obtained, would only be borrowi.ng from one WALTER J. LITTLE, department to pay another; and Speaker of the Assembly. Whereas we feel that imminent disaster is upon us, unless re­ ARTHUR A. 0HNIMUS, lieved by a moratorium of at least 2 years on the grazing fees due Chief Clerk of the Assembly. for 1932 and the remission of all fees for 1933: Now, there­ Attest: fore, be it Resolved by the Assembly and Senate of the State of Nevada, (SEAL) FRANK c. JORDAN, That we memorialize the Congress of the United States to take Secretary of State. immediate steps to provide a moratorium of at least 2 years on Endorsed : Filed 1n the office or the secretary of state of the the payment of grazing fees due from livestock men as users of State of California January 28, 1933. Frank C. Jordan, secretary of the Government ranges for 1932, and a total remission of grazing state, by Charles J. Hagerty, deputy, at 3:10 o'clock p.m. fees for the year 1933; and be it further In witness whereof I have hereunto set my hand and have Resolved, That properly certified copies of this resolution be caused the great seal of the State of California to be affixed hereto forwarded, by the secretary of state, to the President of the this 20th day of March AD. 1933. United States Senate, the Speaker of the House of Represe~~atives, {SE.AL) FRANK c. JORDAN, to the Secretary of Agriculture, to each of our Senators, and to Secretary of State. our Representatives in Congress. MORLEY GRISWOLD, The VICE PRESIDENT also laid before the Senate the President of Senate. following concurrent resolution of the Legislature of the V. R. MERIALDO, State of Kansas, which was referred to the Committee on Secretary of Senate. FRED S. ALWARD, Agriculture and Forestry: Speaker of the Assembly. Senate Concurrent Resolution 18 GEORGE BRODIGAN, A concurrent resolution memorializing the Congress of the United Chief Clerk of the Assembly. States to pass "the Farmer's Farm Rellef Act" proposing that STATE OF NEVADA, the Government now perform its solemn duty and place Ameri­ ExECUTIVE DEPARTMENT. can agriculture on a basis of equality with other industries Approved March 20, 1933. Whereas Kansas is largely an agricultural State and largely F. B. BALZAR, Governor. dependent on that industry; and The VICE PRESIDENT also laid before the Senate the Whereas prices of agricultural products, both crops and live­ stock, are now, and have long been, so .low that the farmers are following joint resolution of the Legislature of the State of unable to pay taxes, interest, and upkeep, and to secure a living Nevada, which was referred to the Committee on Finance: return for their capital and labor; and STATE OF NEVADA, Whereas many farmers already have been dispossessed of their DEPARTMENT OF STATE. homes, and thousands more are threatened with tho loss of the I, W. G. Greathouse, the duly elected, qualified, and acting accumulations o! a life ot toil; and. secretary of state o! the State of Nevada. do hereby certify that 1933 ()ONGRESSIONAL RECORD-SENATE 905

the foregoing is a. true, full, and correct copy of the ortglna.l We, Charles IJvely, clerk of the Senate of West V1rgtn1a, and assembly Joint Resolution No. 22, introduced by Mr. Cooper on .John S. Hall, clerk of the House of Delegates of West Virginia, February 16, 1933, now on file and of record in this office. hereby certify that the foregoing resolution was regularly adopted In witness whereof I have hereunto set my hand and affixed by the Legisl.a.ture of West Virginia, on March 9, 1933. the great ~eal of State at my office, in Carson City, Nev., this CH.ARLEs L!vELY, 22d day of March A.D. 1933. Clerk of the Senate. [SEAL] W. G. GREATHOUSE, JoHN S. HALL, Secretary of State. Clerk, House oj Delegates. Assembly joint resolution memorializing Congress to increase the The VICE PRESIDENT also laid before the Senate a con­ taritf on copper current resolution of the Legislature of the State of Utah, Whereas the production of copper in the mining regions of the United States is an industry furnishing employment to thousands memorializing Congress to appoint a committee to investi­ of men, giving them the opportunity to support fam.1lies to the gate the administration and control by the Bureau of credit of this Nation; and Biological Survey of the Bear River Migratory Bird Refuge, Whereas copper is so extensively useful in the industries and which was referred to the Committee on Agriculture and sciences in our own Nation; and Whereas the production of copper by cheap labor has presented Forestry. a competitive condition with which our American people, by rea­ (See concurrent resolution printed in full when presented son of American living standards, are unable to compete, thus on yesterday by Mr. KING. p. 858, CONGRESSIONAL RECORD.) throwing many thousands of indUstrious men out of employment and destroying the right of American families to exist in the Mr. ROBINSON of Arkansas presented a letter from L-ving manner and maintain American principles and ideals as contem­ A. Metz, of Helena, Ark., relative to farm-relief legislation, plated by our Constitution: Now, therefore, be it which was referred to the Committee on Agriculture and Resolved by the Assembly and the Senate of the State of Nevada, Forestry. That the Congress of the United States be memorialized to impose an additional tariff upon copper to the extent that the total He also presented a letter from J. E. Sheedy, of New York tariff thereon may be 10 cents per pound instead of 4 cents as at City, N.Y., relative to ocean mail contracts, which was re­ present; and be it further ferred to the Special Committee on Investigation of Ocean Resolved, That properly certified copies of this resolution be and Air Mail Contracts. forwarded by the secretary of state to the President of the United States Senate, the Speaker of the House of Representatives, to Mr. CAPPER presented petitions of sundry citizens of Ben­ each of our Senators, and to our Representative in Congress. nington, Centralia, Clafiin, Jetmore, Luray, Madison, Red FRED S. ALWARD. Wing, Selden, Solomon, and Wakeeney, and of Clay, Cloud, Speaker of the Assembly. GEORGE BRODIGAN, Franklin, Logan, and Mitchell Counties; members of the Chief Clerk of the Assembly. Farmers' Unions of Belle Plaine and Rydal; and the Farmers MoRLEY GluswoLD, Educational Cooperative Association of Stafford, all in the President of the Senate. State of Kansas, praying for the passage of the so-called V. R. MEiuAI.Do, Secretary of the Senate. Frazier bill to liquidate and refinance agricultural indebted­ STATE OF NEVADA, ness at a reduced rate of interest by establishing an efficient ExECUTIVE DEPARTMENT •• credit system, which were referred to the Committee · on Approved March 22, 1933, 10:03 a.m. Agriculture and Forestry. F. B. BALZAR, Governor. Mr. COPELAND presented petitions of sundry citizens of The VICE PRESIDENT also laid before the Senate the Clarkson, Warsaw, and vicinity, in the State of New York, following concurrent resolution of the Legislature of the praying for the regulation and supervision of the motion­ state of West Virginia, which was referred to the Committee picture industry, which were referred to the Committee on on Banking and Currency. Interstate Commerce. Senate committee substitute for House Concurrent Resolution 16 He also presented the petition of a joint committee on (by Mr. Lester), memorializing Congress to pass a bill provid­ reduction of armament of the World Alliance for Interna­ ing for the refinancing of farm mortgages tional Friendship and the Church Peace Union, of New Whereas a crisis exists and hundreds of thousands of once pros­ York City, N.Y., praying for an embargo on the shipment of perous farmers in this Nation have already lost their farms and arms and ammunition to foreign countries where war threat­ their all by mortgage foreclosures, because of the fact that the price of agricultural products has for a long time been below the ens, which was referred to the Committee. on Foreign Rela­ cost of production, a condition that atiects all of the people of this tions. Nation and is largely responsible for the continuance of the de­ He also presented a resolution adopted by the New York pression; and State Woman's Republican Club, of New York City, N.Y., Whereas there is at present no adequate way of refinancing ex­ protesting against the recognition of the Soviet Governme~1t isting agricultural indebtedness. and the farmers are at the mercy of their mortgagors ..and .creaJ.tors; and unless immediate relief is of Russia, which was referred to the Committee on Foreign given, hundreds of thousands of additional farmers will lose their Relations. farms and their homes a.nd more millions will be forced into our He also presented a resolution adopted by the Jewish com­ cities and villages and the army of the unemployed will necessarily increase to alarming proportions. thereby precipitating a condition munity of Troy, N.Y., protesting against alleged mistreat­ that threatens the very life of this Nation; and ment of Jews in Germany, which was referred to the Com­ Whereas Senator AitTHUR CAPPER w1ll introduce, .at the session mittee on Foreign Relations. of the Congress which convenes this week, a bill providing !or He also presented a resolution adopted by Stewart Manor the refinancing of farm mortgages at an inte.rest rate of 2 per­ 172, cent, plus 1 percent for amortization and 1 percent !or loan­ Post, No. the American Legion, of stewart Manor, Long protection life insurance, making a total of 4 percent, which lsland, N.Y., endorsing the President's economy program, method of refinancing of farm mortgages has been and is now which was ordered to lie on the table. advocated by the representatives of the farmers of West Virginla; Mr. ASHURST presented a resolution adopted by the and Maricopa (Ariz.) County Club, pro­ Whereas the adoption of such prov1aions will enable the .reduc­ Women's Republican tion of the annual carrying .charges of present farm mortgages testing against the recognition of the Soviet Government of of record from $1,000,000,000 to $400,000,000 and thereby save Russia, which was referred to the Committee on Foreign $600,000,000 annually, which represents an average of $100 per Relations. farm per year for each farm in the United States: Therefore be it Resolved by the house of delegates (the senate concurring TAXATION OF TAX-EXEMPT SECURITIES therein) , That the Legislature .of West Virginia respectfully re­ quests and petitions the Congress to pass without delay said re­ Mr. ASHURST presented a resolution of the executive financing blll, which will be so introduced by Senator ARTHUR committee of the Department of the District of Columbia, CAPPER, in order that the agricultural indebtedness of this Nation the American Legion, which was referred to the Committee may be refinanced and agriculture saved from utter ruin; and be it further on the Judiciary and ordered to be printed in the REcoRD, Resolved, That the clerks of the senate and house of delegates as follows: have copies of this memorial sent to the President of the United THE AMERICAN LEGION, States, the President of the United States Senate, the Speaker DEPARTMENT OF THE DISTRICT OF COLUMBIA. of the House of Representatives, the Secretary of Agriculture, Whereas this country has been passing through a period of Senator CAPPER, and the United States Senators and Members of economic depression which has created great hardships and the House of Representatives from West Virginia. poverty to many citizens of our Nation; and 906 _CONGRESSIONAL RECORD-SENATE MARCH 28 Whereas the said conditions have caused such alarm through­ Again an exhaustive hearing was held by the Finance Committee out the Union that the President of the United States has re­ similar to the hearings held by the Ways and Means Committee, quested and received from the Congress of the United States war­ covering all relevant factors constituting an advantage or disad­ time powers for the purpose of raising revenue to balance our vantage in competition, particularly as to the difference in cost National Budget; and of production of like products in California, Texas, Florida, and . Whereas there are approx1mately $100,000,000 ,000 in National, other Gulf States competing with such foreign products, with the State, and municipal tax-exempt securities outstanding in the express purpose of fixing the duty on fresh vegetables in their United States: Therefore be it · natural state at rates that would place American products on an Resolved, That the executive committee of the Department of equal footing with imports of like products. the District of Columbia, the American Legion, endorse the amend­ · On September 4:, 1929, the blll was reported back with amend­ ment to the United St~tes Constitution taxing tax-exempt securi­ ments. The blll passed the Senate with amendments, was re­ ties, introdliced in the United States Senate by Senator AsHURST, ferred to a conference committee composed of 5 members from of Arizona; that the national executive committee of the Ameri­ the Senate and 5 members from the House. can Legion be requested to work for the passage of said amend­ The conference committee is a rate-adjusting body and has no ment; and that copies of this resolution be forwarded to Senator authority to change any rate on which House and Senate are AsHURST and the press. agreed; its only mission is to reconcile rates on which the House and Senate bills disagree and to report such adjusted blll to the THE WORLD COURT House and Senate for final action. ·Mr. AUSTIN presented the following joint resolution of The bill as reported by the conference committee was passed by the House on May 27, 1930; by the Senate on June 14, 1930; and the Legislature of the State of Vermont, which was referred was approved by the President on June 17, 1930. to the Committee on Foreign Relations: About two weeks after the President signed the 1930 tariff bill Whereas the adherence of the United States to the World Court, applications were filed with the Taritr Commission requesting in­ advocated by every President and Secretary of State in the United vestigation of, and reduction in, duty on tomatoes and peppers States since the World Court was established in 1921, 1s not yet in their natural state; and a little later similar applications were achieved; and filed on peas,_ green or unripe; beans, snap or string; lima beans, Whereas there are now pending in the Senate of the United green or unr1pe; okra, cucumbers, and eggplant in their natural States three treaties which have already been signed by the Presi­ state. dent's authority and which, when ratified by two thirds of the On January 30, 1931, in compliance with Senate Resolution No. Senate, will complete the adherence of the United States to the 414, the Tariff Commission instituted investigations on above com­ Court; and modities; and on May 2, 1931, on beans, snap or string, green or Whereas these treaties, in the judgment of the Department of unripe. State, the American Bar Association, the Vermont Bar Association, This investigation covered a- period of 8 months or more, the and other competent authorities, entirely meet the reservations Tariff Commission employing their expert investigators to gather attached to the resolution passed by the United States Senate in evidence, in minute detail, as to the cost of producing each o! 1926 by a vote of 76 to 17 providing for the entry of this country these various vegetables in various producing sections in Florida, into the World Court; and Texas, Cuba, Mexico, and at other foreign and domestic producing Whereas on February 13, 1925, the Senate and the House of Rep­ points by personal visitation of their investigators; and, as their resentatives of the State of Vermont passed a resolution declaring report indicates, devoting most of their time and research in es­ that "we consider it most desirable for the United States Senate tablishing costs of production in order to show the rate of duty without further delay to adopt such methods as may seem best for that would put American production on a parity with production the United States to participate in the World Court • • • ": costs in foreign countries where cheap land, pauper wages, and Now, therefore, be it living conditions far below our American standards prevail. Resolved by the senate and hO'I.I.Se of representatives, That the • The Florida Agricultural Tariff Association, representing, and Legislature of the State of Vermont hereby rea.tllrm its belief that in behalf of, the Florida growers and kindred industries, more the United States should take its place in the World Court without or less dependent upon the maintenance and growth of the further delay and toward this end we urge the Senate of the vegetable industry, put on a far-reaching research !or dependable United States to ratify the three World Court treaties which it and convincing data as to costs of production, harvesting, con­ _now holds at the earliest practicable time in the special session o! ditioning, grading, and shipping, in various producing sections the new Congress; and be it further in Florida, ·cuba, and Mexico, employing expert investigators, Resolved, That the secretary of state be directed to forward both in Florida, CUba, and Mexico, -at an almost prohibitive ex­ copies of this resolution to Senator WARREN AusTIN and to Senator pense when combined with the expense of appearing at the PoRTER DALE requesting their cooperation in realizing the objective hearing with witnesses and attorneys, before the Tariff Commis­ of this memorial and asking them to convey the action of the sion In Washington, D.C., October 19-24, 1931. Vermont Leglslature as a whole to the United States Senate. On November 23, 1931, the Commission made their report to Gro. D. AIKEN, the President, stating: " The United States Tariff Commission Speaker oj the House of Representatives. herein report the results of investigations of the differences in CHARLES M. SMITH, cost of production of tomatoes, etc., in the United States and President oj the Senate. in the principal competing countries for the purpose of section Approved March 23, 1933. 336 of the Tariff Act of 1930." The Commission recommended STANLEY C. Wn.soN, Governor. but three changes; one increase and two decreases. (See second column of following table of duties provide~.) This report was STATB OF VERMONT, approved by the President on December 2, 1931, to become effec­ OFFICE OF SECRETARY OF STATE. tive January 1, 1932. I hereby certify that the foregoing 1s a true copy of the original Joint resolution entitled "Joint Resolution Relating to Adherence Change In duty o1 the United States to the World Court" approved March 23, 1933. Rate or duty In hearing, October Rate of duty In In testimony whereof I have hereunto set my hand and aftixed Commodity Hawley.Smoot bill. 1931, approved Fordney-McCum­ my official seal at Montpelier this 24th day of March, AD. 1933. 1930 Dec. 2, 1931, effec- ber bill, 1922 (SEAL) RAUSON C. MYRICK, tive Jan. 1, 1932 Secretary of State.

TARIFF ACT OJ' 193G--FRESH VEGETABLES Beans, snap or string, 3~centsperpound No change ______3-2 cent per pound. green or unripe. Mr. FLETCHER presented a paper by the secretary of Lima beans, green or _____ do ______do______Do. unripe. the Florida Agricultural Tartlf Association, Bradenton. Fla., Peas, green or unripe__ 3 cents per pound__ Increase to 3/lr 1 cent per pound. relative to the Tariff Act of 1930, its purpose and effect as cents per pound. Onions ______:l~centsperpound No change ______lMcentsperpound. applied to fresh vegetables in their natural state, which was Potatoes, white or 75 cents per 100 _____ do.______Do. referred to the Committee on Finance and ordered to be Irish. pounds. in RECORD, Tomatoes their nat- 3 cents per pouncL _____ do______Do. printed in the as follows: ural state. 'l'ARIFF AC'l' OF 193o--ITS PURPOSE AND EFFEC'l' AS APPLIED TO FRESH Peppers in their nat _____ do______Decrease to 2~ 25 per cent ad va- VEGETABLES IN 'l'HEIB NATURAL STATE ural state. cents per pound. lorem. Eggplant in their nat- _____ do______Decrease to 1~ Do. FLORIDA AGRICULTURAL TARIFF AsSOCIATION, ural state. cent per pound. Bradenton, Fla., March 17, 1933. Cucumbers in their _____ do ______No change______Do. The act (H.R. 2667) to provide revenue, to regulate commerce natur!ll state. to Squash, celery, let- 2 cents per pound.._ -----dO------Do. with foreign countries, to encourage domestic industries, and tuce, and cabbage. protect American labor. Caulitlower------50 per cent ad v~r _____ do______Do. December 5, 1928, public notice was issued by the Ways and lorem. Means Committee of the House of Representatives to all concerned, Okra __ ------____ _do ______do.______Do. that it would hold hearings commencing January 7, 1929. The All other vegetables _____ do ______do______Do. hearing on agricultural products to commence January 24, 1929. not specially pro- The general hearings before the House Ways and Means Com­ vided for. mittee closed February 27, 1929. Was reported back to the House, and passed by the House on May 27, 1929, and went to the Senate, NoTE.-lmports of fresh vegetables prior to 1922 were of such where it was read twice and referred to the Committee on Finance poor quality and the volume so small they were not considered on May 29, 1929. as competitive by American growers; hence, American producers 1933 CONGRESSIONAL REDO~D-SENATE 907 did not appear before either congressional committee charged Mr. TYDINGS, from the Committee on Territories and With the writing of the bill. and there can be no doubt that the rates of , duty provided in the Tariff Act of 1922 provided Insular Affairs, reported favorably the nomination of John for revenue only, and in no wise represented the differ~nce in W. Troy, of Alaska, to be Governor of the Territory of cost of pr.oduction in America as compared with production costs Alaska, vice George A. Parks. in foreign countries. The VICE PRESIDENT. The treaty and nomination will Again on July 18, 1932, request was filed witb. the Commis­ sion f't>r investigation of tomatoes, and on September 12, 1932, be placed on the Executive Calendar. of peppers, seeking a reduction of duty. . These applications for Bll.LS AND JOINT RESOLUTION INTRODUCED investigation and lowering of the rates of duty were under con­ sideration of the Commission until November 1, 1932, on which Bills and a joint resolution were introduced, read the first date the applications were denied and dismissed by public no­ time, and, by unanimous consent, the second time, and tice; there having been no material changes in production costs referred as follows: since that most comprehensive and far-reaching investigation leading up to the hearing in October 1931, in which case the By Mr. DILL: fl.ndings of the Commission were approved by the President on A bill (8. 846) to provide a preliminary examination of December 2, 1931; and yet, in the face of all these investigations the Puyallup and Nisqually Rivers and their tributaries, and hearings to fix the duty rates as a correct and true meas­ ure of the difference in production costs in the United States in the State of Washington, with a view to the control of and those of competing foreign countries, in order that our their floods; to the Committee on Commerce. American grower of fresh vegetables would be placed on a. parity A bill (8. 847) for the relief of the Nez Perce Tribe of with competitive foreign imports--no more, no less--3 months later, February 3, 1933, the Commission issued an . order, Indians; to the Committee on Indian Affairs. by order of the President, directing an investigation o:f fresh By Mr. McNARY: tomatoes, and set Monday, February 13, 1933, as the date of the A bill (8. 848) giving credit for water charges paid on hearing in Washington, D.C. The hearing convened as per order of the Commission, and the damaged land; to the Committee on Irrigation and Recla­ petitioners for the investigation, representing the Mex.lcan inter­ mation. ests, appeared by attorney and witnesses and presented their testi­ A bill for the relief of Gordon; to the rates, by foreign producers, to obtain control o! the consUming Committee on Military Affairs. markets of the United States. By Mr. COPELAND: First. Before the Ways and Means Committee of House of Rep- A bill <8. 852) to amend section 24 of the Trading with resents. tl ves. . Second. Before the Senate Finance Committee. the Enemy Act, as amended; to the Committee on Finance. Third. Hearing before the United States Tar11f Commission, By Mr. HARRISON: October 1931. A bill (8. 853) for the relief of Robert A. Bowers and Fourth. Petitions filed with the Commission July and September Mary E. Bowers; 1932, and dism1ssed November 1, 1932. Fifth. The investigation culminating in the hearing on February A bill (8. 854) for the relief of the Ingram-Day Lumbe:r 13, 1933. Co.; All having for their chief object the fixing of a. rate of duty that would be a fair measure of the difference in cost of production A bill (8. 855) for the relief of the heirs or legal repre­ and marketing of fresh vegetables produced in foreign countries, sentatives of Charls Johnson and Kate Johnson; as compared with the cost of production and marketing similar or A bill (8. 856) for the relief of John G. ·Sessions; like products grown in the United States. A bill for the relief of Gottlieb Luhm, deceased; American growth and progress? to the Committee on Military Affairs. We cannot believe the American Congress, ln writing section 336 (commonly . known as "the flexible clause") into the 1930 tariff A bill

llEPORT ON USE OF SILVER COINAGE IN EUROPEAN NATIONS "Mr. SIMPSoN. Listen; I want to say this-- "The CHAIRMAN. I do not have so much to say about it. Mr. DILL submitted the following resolution

"Mr. SIMPSON. Senator, the farmer is a human being, lik.e any­ " Senator Ci

Nation. It ts simply a matter of profit to the Farm Board cotton sumed in this country; cost of production to Include wages for · set-ups. This part of the bill also permits cotton farmers to all labor used. 1n pToduction and interest on investment. speculate on a very safe basis. I can imagine the big cotton If you believe in such legislation, you Should get into the planters taking advantage of this speculative feature. but very few Farmers' Union. It is the only farm organization here supporting of the 10-bale farmers will even evEr know of it. and promoting this bill. In the history of all price-fixing legislation it has been done At our Omaha convention the 11th of this month arrangements on a basis of telling the purchaser what he must pay. The Presi­ were made for me to announce a day for farmers to come to dent in his message to Congress on this relief bill said it 1:s an Washington to work on our legislative program. I am not making experiment. Sure, this bill is an experiment, but there was no that call now for the reason that everything is being railroaded. necessity for drawing a bill that would be an experiment. There Bills; are being passed that Members never had a chance to read­ are plenty of precedents in price fixing that no experiment i.e; upon which there were no committee hearings. It would be folly needed. to go to the expense of coming to Washington at this time. I This bill taxes the proce!!sor on the theory that the funds thus may call you later through your State headquarters. Be ready raised will trickle back to the benefit of the farmer. When when the call comes. the Government fixes railroad rates it does not tax some pro­ However, I appeal to you to write to the President of the United cessor or anyone. It simply tells to the purchasers of freight and States, to write to your Congressman from your district, and to passenger service how much they must pay and the railroad your two Senators, telling them what you think about these things gets their money right there. We not only have precedents in and asking them to pass the Farmers' Union legislation that I price fixing of other commodities than agriculture but we even have just explained in this talk. Do not put it oti. Write these have precedents of price fixing of agricultural products. four letters at once. Use lead pencil if you do not have ink. Do In February 1919 the State presidents of the Farmers Union of not ask the children how to spell the words. Let it be your own six States came to Washington and lobbied a bill through Con­ production from beginning to end. That ls the kind of a letter gress that provided for Government guarantee of a minimum price that makes an impression here. for the 1919 crop of wheat of $2.26 per bushel for no. 1 wheat at STATE LEGISLATION Chicago. The bill also provided for an appropriation of a billion I have told you something of the tremendously important de­ dollars to back up this guarantee. The law went into etiect velopments that have taken place here at Washington in the past May 1919. The grain exchanges could not speculate below the few weeks. These are matters of far-reaching importance to every $2.26, consequently they speculated above that price and in less farmer and homemaker. than 30 days wheat was $3 a bushel on the Chicago market. It But while these things have been transpiring here at Washing­ remained around that price until May the next year. The results ton the State legislative bodies in 43 States of the Union have were, first, the Government did not have to spend one penny been busy considering matters of special importance to the in­ of the billion dollars. Second, in spite of the fact that wheat dividual States. was 75 cents a bushel higher than during the 2 years of the war, Most State legislatures have taken steps to reduce expenses and the price of bread did not go up, so it did not cost the consumers to lower taxes. This is very gratifying to the Farmers' Union. We anything. Third, it made the wheat farmers prosperous and that have been actively urging this for several years. Many States prosperity extended into every business in the Nation. would find their financial atiairs in far better shape today had No; this farm relief measure did not need to be an experiment. they heeded the farmer's plea for reduced expenditures and lower They could have copied the 1919 law that brought the wheat taxes 2 or 3 years ago. farmers prosperity, and then we would have known where we It is interesting to note, however, that despite the big need were going, instead of all admitting we have only an experiment. for funds most of the States are standing firmly against any A third thing in this bill that is the height of folly is the regu­ grabbing of road funds for other uses. The Farmers' Union in­ lation of the farmer as to his acreage. How any sane man thinks sists that special gasoline and license taxes collected from auto­ that such a thing is practical is beyond my comprehension. In mobile users for road-improvement purposes must be spent for 1919 there was no attempt to regulate farmers. We got that good that purpose and not diverted to other uses. A number of States price for wheat, with the only machinery of the Government being are arranging to reapportion the gas-tax funds so as to make a the licensing of the buyers of wheat. Think of a group of sane larger share available for county and local roads. This permits men attempting to regulate 30,000,000 men, women, and children of a reduction in local road taxes and is a material aid to the on the farms instead of through a license system regulating a few farmer in his present hard-pressed financial condition. thousand purchasers of the products of the farm. It looks like There is one bill pending, however, in nearly every State legisla­ those who planned this bill had an army of relatives they wanted ture that should, in my opinion, be vigorously opposed by farmers to see get on .the Government pay roll. As a job producer, I !eel, and Farmers• Union members. This is the so-ca.lled " model bill " the bill w1ll be a success. introduced by railroad interests which would bring motor trucks The fourth thing in the bill that w111 stink to high heaven under the control of a State commtssion--oftentime& this would be before it is in operation 6 months is the land-leasing pro-.ision. the State railroad-commission-and subject them to the same sort It provides for the Government's renting land for the purpose of of rigid and costly control that is now placed on the railroads. taking it out of production. I remember a short while ago when This means that with such a law in etiect truck operators would a big newspaperman from Minneapolis gave a banquet at the be required to increase their charges until they were i.pproximately Wlllard Hotel pushing this provision of the b111. I can vision the same as those charged by the railroads. insurance companies going to the Government with their hun­ Once such a law goes into etiect in a State, the farmer's best dreds of thousands of acres of land and renting it to the Govern­ chance to get lower transportation costs is lost. ment at $4 or $5 per acre. It w1ll be a fine scandal, this leasing This same problem will probably come to us here in Washington part of the bill, by the time it has been in operation a year. in the near future in the form of a demand for national regula­ Compared to the inevitable results of this blll, the Farm Board tion of truck rates. We hear suggestions of this kind here of late. and its policies wm be popular. If your State legislatures stop this movement in the States, we THE FARMERS' UNION PROGRAM can probably stop it in Congress; but if many of the States take this step, it may be diiDcult to prevent similar action here. Remember the Farmers' Union program ls a real program. It Let your State legislators know where you stand on this matter. endorses the Wheeler bill, which is now known as S. 70. Write Because of the fact that in most States the legislative bodies are your Senator for a copy, and tell him you want him to support it. approaching adjournment, you will nave to act quickly if your It provides for remonetizing silver. It gives the common people of etiorts are to be etiective. the country what in all time has been the common people's money. Gold has been the rich man's money. Gold has always been used IN CONCLUSION to enslave the poor people of the country. Friends of the radio audience, last month over 500 farmers in If you believe in the Wheeler b111, you should belong to the States where we had no Farmers Union responded to my appeal to Farmers' Union. It is the only farm organization here 1n Wash­ organize and came into the union. There are now six locals ington endorsing and working for the passage of this measure. around Hazleton, Pa., with a membership of over 300. There are For 2 years the Farmers' Union has supported the Frazier b111. five locals around Urbana, Ohio, all self-organized and with a It is known now as S. 457. Write your Senator for a. copy of the membership of over 200. In Michigan, Indiana., Georgia, and Frazier bill, and demand of him that he support it and vote for Florida we are receiving members every day. Most of our State it. Seventeen State legislatures have passed joint resolutiona me­ unions where we have been organized for years report more mem­ morializing Congress to pass the Frazier bill. The Farmers' Union bers paid up for the 1st of March than they had for the 1st of is largely responsible for this having been done. The Frazier bill March last year. provides that this Government shall refina!lce farm mortgages on Mr. Fa.rmer listening in, if you would like to support an organi­ a basis of the farmer paying the Government 1 Y:z percent interest zation that has a program like the Farmers Union, that brings a.nd 1 Y:z percent on the principal each year until the principal is you the truth once a month over the National Broadcasting Co., paid. that will furnish you with a Farmers Union paper twice each If you believe in the Frazier bill, you should belong to .the month, get in where you can help instead of hinder. Write E. E. Farmers' Union. It is the only farm organization here in Wash­ Kennedy, Kankakee, lll. He will tell you how. E. E. Kennedy is mgton endorsing and working for the passage of this measure: our national secretary. National headquarters are at Kankakee, The Farmers' Union 1s supporting the Swank-Thomas bill which Ill. Get in your organization where you do not have to depend in agreement with the Grange and the Farm Bureau a year a.go on the daily press for information, where you can get the truth was combined into the McNary bill, S. 5027. You should write instead o! misrepresentation. your United States Senators and .ask them for a copy . of the MESSAGE FROM THE HOUSE McNary bill, S. 5027. This bill provides for the Government's regu­ lating the marketing of farm crops on the basis of getting cos~ A message from the House of Representatives, by Mr. of production to farmers for that portion of th-eir crops con- Megill, one of itS clerks. announced that the House had LXXVII--i8 914 .CONGRESSIONAL RECORD-SENATE MARCH 28 passed a joint resolution to provide for the 1 Mr. BORAH. That is a very serious matter throughout acceptance of sums donated for the construction of a the Northwest. swimming-exercise tank for the use of the President, in Mr. WALSH. Some members of the committee called the :which it requested the concurrence of the Senate. attention of the whole committee to that fact. RELIEF oF UNEMPLOYMENT Mr. BORAH. There would be rio doubt in the Senator's Mr. ROBINSON of Arkansas: Mr. President, I move that mind that the subject of national forests and parks in the the Senate proceed to the consideration of the bill (S. 598) States might be dealt with through the President having an for the relief of unemployment through the performance of understanding with the States? useful public work, and for other purposes. Mr. WALSH. In my judgment there is no question about The motion was agreed to; and the Senate proceeded to that authority being granted. consider the bill, which had been reported from the Com- Mr. COPELAND. Mr. President, will the Senator yield? mittee on Education and Labor with an amendment to strike Mr. WALSH. I yield to the Senator from New York. out all after the enacting clause and to insert: Mr. COPELAND. May I say to the Senator from Idaho that the matter of the white blister and gypsy moth was Th·at for the purpose of relieving the acute condition of wide­ spread distress and unemployment now existing in the United given consideration by the committee; and yesterday I stated States, and in order to provide for the restoration of the country's on the fioor that I had no question that, so far as both of depleted natural resources and the advancement of an orderly those pests are concerned, under the laws which now exist, program of useful public works, the President is authorized, under such rules and regulations as he may prescribe and by utilizing with the cooperation of the States, even private land adja­ such existing departments or agencies as he may designate to cent to the public domain might be entered in order to deal provide for employing citizens of the United States who are unem­ with the problem presented. ployed in the construction, maintenance, and carrying on of Mr. BORAH. I am very glad to have that construction. works of a public nature in connection with the forestation of lands belonging to the Unite

TABLE m.-statement of expenditures

Camp Dynamite, Equipment Gas, grease, Supplies, Adm.inis- Other ex- Total ex- Percent of District no. Labor Team hire board fuzes, caps hired and oil repairs tration pense penditure total

1_------$29,560. 42 $5,275. 73 $2,511.85 $1,279.78 $1,828.56 $459. 66 $305. 46 ------$164.38 $41,385.74 8. 91 2_------24,264. 37 2, 360. 70 854.00 576. 23 353.35 171. (Jl 373.fJl ------835.41 29,788.20 6.42 3_------34,885. 89 3, 603. 55 ------3, 675.13 .. 082.32 783.25 278.45 ------3l.24 47,339.83 10.19 4_------44, 480.86 5, 6.'i9. 82 ------5,856. 77 1, 430.24 494. 06 434.37 ------29.20 58,385. 32 12.58 5------25.202.80 2, 9S6. 60 1, 064.40 2, 283. 11 978.24 722.93 598.81 ------57.48 33,894. 37 7. 30 6_------41,682.33 3,192.51 2, 793.29 4, 221.23 4, 909.11 1, 017. 10 1, 324.17 ------289.44 59,429.18 12.80 7------28,434. 71 3, 275.33 225.13 2, 744.03 2, 783.15 714.15 310. fJl ------328.91 38,815. 48 8.37 8_------30, 717.39 2, 785.66 ------1, 113.86 417.20 186.54 34.00 ------45.90 35,300. 55 7.60 9------33,438.95 6, 731.20 ------2,229. 34 10.00 111.65 163.71 ------126.05 42, 810. 90 9. 22 10------27,752. 26 3, 163.58 ------1, 574. 06 397. 25 743.69 221.19 ------221.01 34,073. 04 7.34 11 _------21,048.18 2, 027.57 ------800.47 -·------583.72 794.84 398.54 223.85 25, 877.17 5.58 Door County_------4, 719.40 ------132.11 106.71 ------4, 958. 22 1.06 Miscellaneous projects ______1, 993.50 ------7, 998.87 2, 170.71 ------12,163.08 2.63 Total __ ------348,181.06 4.1,062. 25 7,448. 67 26,354.01 17,189.42 6,119.83 12,943. 7.2 2, 569.25 2, 352.87 464,221.08 100.00 Total (percent) ______75.01 8.84 1.61 5.68 3. 70 L32 2. 78 .56 .50 100.00 ------920 ~ONGRESSIONAL lt~CORD-SENATE MARcH 28

SECTION II. EMPLOYMENT TAm.!: V.-Number Of men employed by counties-Continued Twelve thousand seven hundred and ninety men were giv-en em­ ployment. These men had a total of 40,209 dependents, or an Number average of 3.14 dependents for each man employed. The average No. County of men Percent wage per man employed was $31.02. employed or total This information is shown by districts in table IV. TABLE IV.-Number of men employed., number of dependents, and 35 wood_------100 0. 78 average wage Miscellaneous ______------____ ------___ _ 11 .09 TotaL------12,790 100.00 Number Average Average of men Total wage Number number In order to show roughly the sources from which labor was District no. em- wages per or de- depend- ob'tai.ned and to show to what degree labor was obtained from ployed pendents ents per man man the 1mmediate locality in which the projects are located table VI has been prepared in percentages. Employment on miscellaneous projects and the projects in Door County has not been included l_------1,047 $37, 34S. 00 $35. 67 2,996 2.86 1n this compilation. The number of men employed on these 2------879 27,479.07 31.26 3,«8 3.92 projects was comparatively small, and 1f included would materially a___ ------1,276 38, 489.« 30.16 3,348 2. 62 affect the percentages otherwise obtained. 4_ ------1,427 50, H.O. 68 35.14 .. 850 3.40 5_------834 29,253.80 35.08 2,630 3.15 TABLE VI.-Bources of labor in percentages o____ ------2,332 47,668.13 20.« 6,283 2. 69 7------1,072 31,935.17 29.79 3, 7.:J 3.49 g_ ------876 33,503.05 38.25 2,803 3.20 Percent of 1,224 40,170.15 32.82 .. 2(5 3. 47 labor em- Percent of Percent or Percent of 9_------ployed labor em- labor em- 10_------997 30, 915.. 84 3L 01 3,194 3.20 labor em- 590 23,075.75 39.ll 1. 961 3.32 from ployed played played Tot!ll 11 _ ------District No. towns in from from from percent Door CountY------~---- 225 4 4, 719.40 20.98 675 3.00 Miscellaneous _____ ------11 1, £93. 50 181.23 33 3.00 which nearby nearby outside projects towns cities county Total______12,790 396,69L 98 31.02 .a, 209 3.14 are located

In order to show which counties have benefited by employment 1------72.67 9.33 18. ()() ------100 for relief purposes, table V has been prepared, showing the number 2------72.15 16.98 8. 27 2.60 100 of men employed from each of the 35 counties from which labor 3------67.62 24.29 7. 91 .18 100 •------80.45 11.80 7. 75 ------]()() was secured. 5 ______• ------86.66 11.54 1.80 ------100 57.06 18.02 11.74 13.18 100 TABLE v.-Number of men employed. by counties 6------64.26 15.88 19.86 ------100 54.60 25.60 19.80 ------100 !======_::::::::: 66.42 31.30 2.18 .10 100 No. County ~Fm!: Percent 10 ______------Zl.30 20.61 37.00 15.03 100 employed of total 1L_ ------50.37 26.93 18.53 4. 17 100 Door County______(2. 00) (80. 00) (18. 00) ------(100) TotaL ______63.59 19.30 13.90 3. 21 100 1 Adams __ ------3341 2. 61 2 Ashland------1,~, 9.56 3 Barron __ ------.04 The percentages in parentheses are not included in computing 4 Bayfield______-----______375 2.93 totals. 5 Burnett ___ ------349 2. 73 Common labor was paid at the rate of 25 cents per hour for the 6 Chippewa..------67 .52 first 4 weeks and at the rate of 30 cents per hour thereafter. 7 Clark___ ----____ ------248 1.94 8 Columbia __ ------1 . 01 Foremen. gradermen, and tractor operators were paid at a rate 9 Door ___ ------225 1. 76 of from 35 cents per hour to 40 cents per hour. Teams and trucks 10 Douglas __ ------671 5.24 were hired at local prevailing rates. 11 Eau Claire __ ------237 1.86 In computing the figures shown in columns g, h, i, and j of table 12 Florence ______------334 2.61 13 Forest ______-----______---_----___ _ 992 7. 75 vn it was assumed that the average wage for all classes of labor 14 Iron __ ------_ 978 7.65 was 30 cents per hour in all districts, except miscellaneous projects, 15 Jackson.. ______--___ ----_--____ ----__ ------_ 339 2.05 where 53 cents was used. The total man h.ours was computed by 16 Juneau __ ------152 1.19 divid.ing the total wages by the average hourly wage. This was 17 Langlade_------____ ------793 6. 20 divided by the number of men employed to give the average num­ 18 Lincoln.. ______------361 2.82 19 Marinette_------_------_-----______942 7. 37 ber of hours worked per man. By dividing this figure by 8 the 20 Monroe____ ------_____ ------134 1.05 average number of 8-hour days worked per man was obtained . . 21 Oconto ___ ------____ ------259 2.02 The rotation of labor, or average number of periods for which 2223 OneidaPolk.. ______------_ 515 4. 03 each man was employed, was obtained by dividing the total number 27 . 21 of times men were employed by the actual number of men em­ 1 .01 2425 PricePortage------______----___ ---__ ployed. By dividing the average number of days each man worked 823 6.43 by this ratio the average number of days in each period of em­ 26 • Rusk ___ ------316 2. 47 27 Sawyer_------621 4.86 ployment was obtained. 28 Shawano _____ ------165 1. 29 The total number of times men were employed is the total 29 Taylor------270 2.11 number of tlmes men worked on all projects. When one man 30 Trempealeau __ ------35 .27 worked on two or more projects he was considered to have worked 31 Vernon ____. _____ ------______- ___ ------_------1 . 01 as many times as the number of projects on which he worked. 32 Vilas __ ------375 2. 93 33 Wash burn______------_____ -----_ 506 3. 96 The transferring of labor from one project to another during the 34 Waushara_ ------5 .04 same period of employment was discouraged as much as possible.

TABLE vn.-Periods of employment and average number of days worked per man

(a) (b) (c) (d) (e) (0 (g) (h) (i) (j) (i/e) Number or (b/a) Actual (g/d) (h/8) Average Average (a/d) Average Average Average times men wage per number (b/0 days p:c>r were em- Total wage men em- Rotation wage per hours days period or time em- of labor hour Man-hours worked work-ed ployed ployed ployed employ- per man per man mcnt

District no. L------~ 1, 968 $37,348.00 $18.98 1,(}{7 1.88 $0.30 124,493.3 118.9 14.8 7. 9 District no. 2------1,575 27,479.07 17.45 879 1.79 .30 91,596.9 10·1. 2 13.0 7.3 District no. 3------2,087 38,489.44 18.44 1,276 1.64 .30 128,298.1 100.5 12.6 7. 7 District no. 4_ ------2, 272 50,140.68 22.07 1,427 1. 59 .30 167, 135.6 117.1 14.6 !}, 2 District no. 5------1,653 29,253.80 17.70 834 1.98 .30 97,512.7 116.9 14.6 7. 4 District no. 6------2,502 47,668.13 19.05 2, 332 1.07 .30 158,893.8 68.1 8. 5 7. 9 District no. 7------. 1, 751 31,935.17 18.24 1,072 1. 63 .30 106,450.6 99.3 12.4 7. 6 District no. 8------1,954 33,503.05 17.15 876 2.23 .30 111,676.8 127.5 15.9 7.1 District no. 9------2,022 40,170.15 19.87 1, 224 1. 05 .30 133,900.5 109.4 13.7 8. 3 District no. 10 ______:. ______1, 737 30,915.84 17.80 997 1. 74 .30 103,052.8 103.4 12.9 7. 4 District no. 11------1,421 23,075.75 16.24 5{lt) 2.41 .30 76,919.2 130.8 16.4 6.8

Door County------375 4, 719.40 12.59 225 1. 67 .30 15,731.3 69.9 8. 7 1 5. 2 Miscellaneous project______11 1, 993.50 11 1.00 .53 3, 759.0 341.7 42.7 42.7 TotaL ______mL~I 21,328 396,691.98 18.60 12,790 1.67 .30 1. 319, 420. 6 103.2 12.9 1 7. 7 1933 CONGRESSIONAL RECORD-SENATE 921

SECTION m. WORK ACCOMPLISHED Miscellaneous: The work on expenditures under this classifica­ The total expenditures, classified according to the type of work tion are as follows: accomplished, are as follows: Type and amount of work accomplished: Total cost Construction of gates not distributed to projects___ $557.33 Miscellaneous brushing (12 miles at $45.81 per mile, Total ex­ Percent Type of work accomplished penditure of total a~~ 695 acres at $7.13 per acre)------5,507.91 CrUISmg ------327.90 Tower-cabin construction_------235.90 Administration and supervision ______New fire roads._------$374,299. 17 80. 62 2,569.25 F ire breaks. __ _------40, 655. 40 8. 76 Tower foreman------1,362.30 F ire-hazard elimination. _____ ------10,669. 82 2.30 Tools and supplies not distributed to projects______8,455.58 Construction labor ______------18,679.97 4.02 Transportation not distributed to projects______631.20 Miscellaneous ______---___ ------19,916.72 4. 30 Miscellaneous expenditures ______269.35 Total. ___ ------464,221.08 100.00 Total miscellaneoUS------19, 916. 72 The above classifications will be discussed in the following Mr. COUZENS. Mr. President, I want to offer a substitute paragraphs: for section 2, and in offering the substitute I would want to New fire roads: 1,020 miles of new fire road were constructed, include the amendment the Senator from Wisconsin has at a cost of $374,299.17, or an average cost per mile of $366.96. In constructing these roads 17,497 rods of fill, 266 bridges of an aver­ just had adopted. I would like to have the clerk read the age length of 22.7 feet, 764 culverts, and 299 gates were installed. amendment. These figures are shown by districts in table VIII. The PRESIDENT pro tempore. The clerk will read the TABLE VIII.-New fire roads amendment. The Chief Clerk read the proposed substitute, as follows: Num- Number Total Num- Num- SEc. 2. For the purpose of carrying out the provisions of this District Cost per Rods of of feet, berof ber of no. ber of Cost mile fill act the President is authorized to enter into such contracts or miles bridges bridges culverts gates agreements with States as may be necessary, and the President, or ------1- --- the head of any department or agency authorized by him to con­ } ______66.3 $33,156.71 $500.10 2,389 18 459 100 11 struct any project or to carry on any such public works, shall be 2 ______51. 2 16,279.11 317.95 1,005 4 390 15 5 authorized to acquire by purchase, donation, condemnation, or 139.8 44, 519.98 305. 35 1,402 22 592 205 25 3---4______- --- otherwise real property contiguous to real .P!.P.PertY already owned 00. 6 53,647.21 592.13 1, 533 31 767 88 36 by the Government, bu~o1 section 355 of the Re­ 5------102. 7 32, 479.67 316.26 1,810 48 849 40 34 vised Statutes shall not apply to any property so acquired. 6 ______111.7 56, 603. 90 506. 75 1, 938 39 1,004 137 28 33, 196.61 f>G7. 46 464 14 145 71 19 87------______58. 5 Mr. COUZENS. Mr. President, this amendment proposes g______111. 3 34,605. 05 310. 92 1,860 28 403 65 40 171. 2 40, 740.05 237. 97 1,167 43 1,175 30 M to eliminate from the language in section 2 authority for the 10. . ---- 86. 5 20, 564.. 69 237.74 3,009 15 163 11 35 u ______30.2 8, 506. 19 281.66 920 4 86 2 12 President to purchase or acquire property from counties and municipalities, or any other property except from the State ,1, 020. 0 374, 299.17 366. 96 17,497 266 6,033 764 299 where such property is contiguous to the property already in the ownership of the Federal Government. Fire breaks: 342.2 miles of fire breaks were constructed at a total cost of $40,655.40 on an average cost per mile of $118.81. In The purpose is not to give a blanket authority for the constructing fire breaks 323 rods of fill, 11 bridges of an average purchase from municipalities or from counties or from length of 18.6 feet, 13 culverts., and 4 gates were installed. These States of any kind of property which may not be contiguous " figures are shown by districts in table IX. to Federal property such as national forests or national TABLE IX.-Fire breaks parks. In all other respects it is the same as the provision proposed by the committee. · Num- Cost Num- Total Num- Num- her of Cost per Rods ber of feet of ber of ber or Mr. CONNALLY. Mr. President, will the Senator yield miles mile Offill bridges bridges culverts gates to me? - Mr. COUZENS. I yield. District no. L 12.6 $2,073.86 $164.59 100 ------5 ------Mr. CONNALLY. Under this amendment it would be District no. 2.... 176.9 10,233.20 57.85 3 ------3 ------impossible for the President to acquire lands in a State District no. 5 __ 1.5 288.80 192. 53 ------District no. 7__ 4. 5 572.30 127. 18 2 20 1 ------4 where there are no public lands. District no. 10. 63. 1 12, 4.51. 79 197.33 52 8 167 4 District no. lL 83. 6 15,035.45 179.85 168 1 18 Mr. COUZENS. That would be true. ------Mr. CONNALLY. Does the Senator think that is quite 342.2 4.{), 65.5. 40 118.81 323 11 205 13 4 fair? I represent a State territorially the largest in the Union, and there is not a foot of Federal land in the State. Fire-hazard elimination: The work accomplished under this classification consisted of the following: Does the Senator think my State ought to be denied all the Type and amount of work accomplished: Total cost _ benefits of this proposed act? 103.5 miles of snag cutting, at an average cost per Mr. COUZENS. It refers to acquiring property. It would mile of $47.84------$4,951.36 not prevent any work being done. 81.5 miles of road slash, burned at an average cost Mr. CONNALLY. If we could not acquire the property, per mile of $26.85------2,188.41 190.0 miles of telephone-line brushing, at an aver- how could we do any work on it? age cost per nille of $13.32 ______2,530.15 Mr. COUZENS. There are provisions in the first section 30 acres of park and other slash, disposed of at an for doing work in cooperation with the States. I am just average cost per acre of $33.33------999. 90 objecting to the purchasing of any more land by the Federal Total hazard elimination ______10, 669. 82 Government except where it might be necessary to square Construction labor: Practically the entire expenditure under out a piece of national forest with Federal land. this classification was for labor. Supplies and materials have Mr. CONNALLY. I will have to disagree with the Senator. been changed to other funds wherever possible. The work accom­ :Mr. COUZENS. If the Senator could illustrate in what plished under this classification consisted of the following: kind of a case this would apply in Texas, I would be glad to Type21 and new amount towers ______of work accomplished: $3,845.84Total cost have him do it. I do not understand what land he would want to sell the Federal Government under section 2. 12 tower replacemen~------1,567.43 8 tower relocations ______.:______971. 82 Mr. CONNALLY. The Senator from Texas does not want Tower repairs------358. 08 to sell the Federal Government anything, but if it is sound Addition to ranger-station buildings______462. 30 Improvements to ranger-station buildings______1, 781. 99 national policy to acquire land in order to undertake refor­ Repairs to ranger-station buildings______78. 00 estry, I do not see why any particular section or any par­ 190.9 miles of new telephone line, at an average ticular State should be discriminated against. For instance, cost of $35.86 per ~e------6,846.26 Improvements to old telephone line______2, 768. 25 there are many areas in Texas which would make fine national forests; and we might want the Federal Government Total construction labor ______18,679.97 to pm·chase some of that land and reforest it and let it be 922 _CONGRESSIONAL RECORD-.SENAT~_ MARcH 28 a national forest. But tmder the Senator's amendment it The PRESIDENT pro tempore. The question is on the would be impossible to do that. amendment of the Senator from Michigan [Mr. CoUZENs]. Mr. COUZENS. In other words, this money might not be Mr. CONNALLY. Mr. President, I do not quite agree with used for relief of unemployment at all. the purpose of the amendment of the Senator from Michi­ Mr. CONNALLY. It would be if they reforested the land.­ gan [Mr. CoUZENs]. As I undertook to point out a while ago, Mr. COUZENS. I know; but if the Government uses all his amendment would restrict the power and discretion of of the limited appropriation now carried in this bill for the the President under the bill. My State is in a very peculiar purchasing of land, there would be nothing left for the relief position with reference to Federal land. When Texas came of unemployment. In other words, it would be for the relief into the Union it reserved its own land and donated to the of landowners rather than of the unemployed. Union a great part of the territory which now forms a part Mr. VANDENBERG. Mr. President, will my colleague of the States of New Mexico and Colorado. The result is yield? there are no Federal lands in Texas. If this is an unem­ Mr. COUZENS. I yield. ployment-relief measure, my State· is entitled to the benefits Mr. VANDENBERG. Furthermore, national parks are of the relief proposed to be granted. On the other hand, never purchased: they are always procured by donation if it is a land proposition, as the Senator from Michigan from the States or subdivisions. insinuated-though I do not know that that is the purpose­ Mr. COUZENS. That is true with respect to national it seems to me my State, since it came into the Union, is still parks; but I also wanted to cover the question of forests. in the Union. In other words, if this is to be a land purchase bill, then Mr. COUZENS. Mr. President, will the Senator from why mislead the public into thinking it is an unemployment Texas yield? relief bill? The PRESIDENT pro tempore. Does the Senator from Mr. COPELAND. Mr. President-- Texas yield to the Senator from Michigan? The PRESIDENT pro tempore. Does the Senator from Mr. CONNALLY. Certainly. Michigan yield to the Senator from New York? Mr. COUZENS. The Senator will find his State is taken Mr. COUZENS. Certainly. care of the same as my State, under section 1. I do not Mr. COPELAND. As I understand the Senator, he simply want to limit in any way the amount of money that is being proposes to eliminate municipalities and counties? devoted to the relief of unemployment. Particularly I do not Mr. COUZENS. And, in addition to that, make the bill want to divert the use of that money to the purchase of applicable to land that may be required in the State con­ land. tiguous to land already owned. Mr. CONNALLY. I understand the purpose of the Sena­ Mr. COPELAND. I see no objection to that. tor, but does the Senator think it is sound policy to re­ Mr. LA FOLLETTE. Mr. President-- forest only in the places where there are already large The .PRESIDENT pro tempore. Does the Senator from Federal parks and a great deal of Federal land? Michigan yield to the Senator from Wisconsin? Mr. COUZENS. Oh, no. Mr. COUZENS. I yield. Mr. CONNALLY. If reforestation is a good policy any­ Mr. LA FOLLETTE. It has been the experience in Wis­ where, it is good everywhere. consin under relief forestation work that where the pur­ Mr. COUZENS. That can be done under the provisions chase of land in any considerable quantity is involved $2 of section 1. goes for the purchase of land and only $1 for wages or Mr. CONNALLY. I understand, but let me say to the other form of relief work. Therefore it seems to me the Senator from Michigan, that some sections in the Senator's Senator's amendment is very properly drawn to restrict, own State contain Federal lands and others do not. Does insofar as possible, the activities under the bill to the he want to restrict the activities under this section to those provisions for relief work. portions of the State only where there is Federal lands? Mr. COUZENS. The reason why I offered it in this par­ Mr. COUZENS. I did it on the recommendation of the ticular form was because the Senator from Massachusetts Senator from Massachusetts yesterday. If the Senator [Mr. WALsH], in describing the intent of the section, said from Texas wants to amend the substitute which I have there might be a few acres contiguous to some Federal land offered and omit all purchases, I am entirely agreeable. or park which it might be necessary to acquire to square it The Senator from Massachusetts described it yesterday and out, and it would not be expensive. I have endeavored to act in accordance with his views. If Mr. McNARY. Mr. President, will the Senator yield? the Senator from Texas wants to offer an amendment to Mr. COUZENS. I yield. my amendment eliminating all purchases, I am entirely Mr. ~:IcNARY. The Senator from Michigan is quite right. agreeable. Under the acquisition act passed in 1916 the Government Mr. CONNALLY. I do not care to do that because it can acquire land on watersheds and navigable streams. may be that in working out the plan we ought to purchase This year we carried about $90,000 for that purpose. Up some land somewhere. until 2 years ago the Government carried about $1,000,000 Mr. BORAH. Mr. President-- a year. I think 6,000,000 acres have been acquired. Why .The PRESIDENT pro ten:;.pore. Does the Senator from interfere with that policy in a haphazard way? I think Texas yield to the Senator from Idaho? the Senator is quite correct in asking that the language to Mr. CONNALLY. I yield. which he has referred should be stricken out. Mr. BORAH. I think the Senator is or ought to be Mr. COUZENS. I am asking to strike out all the Ian.. supremely happy, and I know he is fortunate in the fact guage that takes away or interferes with the operation of that the Government owns no land in his State. If the the policy that we already have. It is proposed under sec­ bill prevents the purchasing of any land in his State, he tion 2 to spend all this money for acquiring lands from ought to be happy ~gain. I wish my State were in the same counties and municipalities. It would be a land-relief meas­ position. We have about 69 percent of all the land in our ure instead of an unemployment-relief measure if that lan­ State under Federal control. We have the other end of the guage were permitted to stand. proposition. I envY the Senator and his State in their posi­ Mr. WALSH. Mr. President, all that the Senator from tion. I would not, if I had my way, permit the Federal Michigan has said is in accord with the views of the Presi­ Government to purchase a foot of land in my State except dent. The President has no intention and no pmpose to for public buildings. use the funds available in this bill for the purchase of any Mr. CONNALLY. Of course, if the Senator acknowledges public domain. He has emphatically stated that we already the ownership of 69 percent in the Federal Government, he have too much public domain. The only reason for the pro­ would not care about the Federal Government purchasing posal was to permit, for instance, the purchase of land where any more. [Laughter.] I am not anxious for the Federal water would be available or for some similar purpose. I see Government to purchase any land in my State. I think my no objection to the amendment. State was wise when it reserved its own public lands. But 1933 .GONGRESSIONAL RECORD-SENATE 923 let me suggest to the SenatOl" that the lands which Texas Mr. CONNOLLY. But we have Federal homestead laws. did keep have not been preserved in great forest reserves, Are not many of those lands subject to homestead entry? but have been sold to settlers and homesteaders. The result Cannot settlers go and convert those lands into public is we have not any great scope of public lands upon which settlement? these projects can be undertaken. With reference to my · Mr. BORAH. They are not subject to homestead entry if State, if the Federal Government cannot purchase any of they are under reserve. those lands, the net result will be that no refor-2station will Mr. CONNALLY. But they are not all under reserve, are take place in my State, and consequently my State will get they? no benefit whatever out of this legislation. Mr. BORAH. I said 69 percent. Not only that, but in Mr. FESS. Mr. President-- those places in the valleys, and so forth, where homes could The PRESIDENT pro tempore. Does the Senator from have been built, under the regulations and practices and Texas yield to the Senator from Ohio? domination of the forest reserve that has been made imprac- Mr. CONNALLY. I yield. ticable. These vast regions are given over entirely to forest Mr. FESS. I am interested in the question asked by the re5erves. That does not make a State. We cannot make a Senator from Idaho about the amount of public land or the state in that way, it makes no difference how much money proportion of the land in the State owned by the Federal we get out of the Treasury of the United States. It is like Government. Why is it the Federal Government does not the old days in England when they had vast hunting forests. cede to those States the land that lies within their bound- They were very delightful for those who hunted and were aries? I would vote for it today. willing to sustain and maintain them, but they prevented Mr. BORAH. We would get about a dozen votes for such the building up of communities. a proposal. Mr. CONNALLY. I simply offer that suggestion to the Mr. FESS. It ought to be done and let the Government Senator from Idaho. I am sure he has a great State. It get out of the ownership of such lands. may not be developed to the extent of some of the old States, Mr. BORAH. The Government created these vast forest but it was sufficiently attractive for the Senator to choose reserves of land where in many instances God could not it for his home. It was sufficiently wise to select the Senator make a tree grow and neither can the Government. The and send him here to Washington to represent it. I have result of it is that we have this vast percentage of land high respect for both the Senator and his State when I under the control of the Federal Government, depleting and contemplate that fact. exhausting our opportunities for building up communities Mr. BORAH. The people who are there are a very fine and all... things connected with great communities. But we class of people, but there are not enough of them. could not get a bill through the Congress to cede those lands [Laughter.] We want more of the same class of people and to the Sta-tes. we want our natural resources which Nature's God has Mr. FESS. Why not? given us with which to develop our State. Mr. BORAH. Because we could not get the votes. Mr. CONNALLY. The State of Idaho is not altogether Mr. FESS. Would not the voters in the State oppose it? unblessed. The Federal Government has already under- Would not the land States in the West oppose it? taken to make Idaho a great State. The Federal Govern- Mr. BORAH. Support it, does the Senator mean? ment has financed reclamation projects by which water has Mr. FESS. No; oppose it. been dammed up and carted out across the desert to water Mr. BORAH. I do not know about that. the plains. That money has been furnished to the settlers Mr. FESS. I do not know why the East would want to of Idaho from the Federal Treasury without any interest retain those lands. whatever. It takes something more than the laws of a Mr. BORAH. It was the East that adopted the policy State or a nation to make a State. God Almighty has. some­ and enforced the policy which resulted in Federal ownership thing to do with it. He made the desert. He made the of 69 per cent of the lands in Idaho to which I have referred. mountains. He made the streams. A statute cannot remove It was their thought that put this policy upon the West. or change them. Mr. FESS. We ought to change it. Mr. President, I insist that I do not believe the amend- Mr. BORAH. Yes; we ought to. ment of the Senator from Michigan is just or that it is fair Mr. FESS. I would voUI to change it at once. in limiting the activities under the bill to those States that Mr. CONNALLY. Mr. President, let me suggest, on the now possess Federal lands. If the bill is good for New Eng- other hand. that I am not an easterner and that the West- land, it ought to be good for the South. If it is good for ern States are not entirely unblessed by the possession of the pinelands of Michigan that have been cut over and these Federal lands. They always want the Federal Gov- that are now worthless perhaps, it ought to be good for ernment to cede these lands, complaining that they do not some of the pinelands down in Texas owned by private pea­ pay taxes and do not maintain the States; but my observa- ple which the Federal Government might want to acquire tion since I have been a Member of Congress is that the to establish a great forest reserve. Federal Government goes into the Treasury and, from Mr. COUZENS. Mr. President-- moneys contributed by the remaining States of the Union, The PRESIDENT pro tempore. Does the Senator from builds roads and builds parks and has forest rangers and Texas yield to the Senator from Michigan? appropriates millions of dollars for caring for those lands. Mr. CONNALLY. I am always glad to yield to the Senator All of that money is spent in the Western States which are from Michigan. He is irresistible. complaining that the Federal Government owns the public Mr. COUZENS. Does the Senator's State have any lands domain. which it owns itself? Mr. BORAH. We do not want any money out of the Mr. CONNALLY. A few scattered pieces of land here and Treasury of the United States. We want communities. we yonder that it has not been able to sell to private settlers .. want the States built up and the communities built up, we That is the kind of lands we have to reforest. cannot do it by making forest reserves of the states and Mr. COUZENS. They can be reforested under the terms. then taking money out of the Treasury of the United States of this bill. for that purpose. No amount of money from the Treasury Mr. CONNALLY. Yes; but would the _Senator want to of the United States can suffice for a great, fully developed reforest 200 acres here and 200 acres there and 100 acres commonwealth. We want the taxing power to extend to in some ether place? our great domain. Suppose 69 percent of some of these great · Mr. COUZENS. If they are owned by the State and Eastern States were under Federal control. What condition there is unemployment, it can be relieved under section 1 would they be in when you consider they are now daily of this act. knocking at the door of Congress for money to feed their Mr. CONNALLY. The Senator comes from Michigan, people? from the great city of Detroit, the center of the great auto- 924 .CONGRESSIONAL ;RECORD-SENA~ MARCH 28 mobile industry of the United States. He knows that the namely. that the money provided here shall go to the purpose great automobile industry in Detroit would not want to of giving relief rather than for the acquisition from private have 1 factory over in the esstern part of town making interests of cut-over lands on which the owners no longer 2 automobiles a week and another factory over in the west­ desire to pay taxes and which are being unloaded upon the em part of town making 1 automobile a week. Federal Government. Mr. President, will the Senator from Mich.lgan give me I am in sympathy with the situation which confronts the his attention? Senator from Texas, but I merely wanted to urge upon the Mr. COUZENS. The Senator from Wisconsin was much Senator's attention the fact that in a great many States of more entertaining for the moment. [Laughter.] the Union there is a situation which completely justifies the Mr. CONNALLY. I dare say he 1s always more enter­ amendment offered by the ·Senator from Michigan. taining. I am making an a:rgument which perhaps the Mr. CONNALLY. The Senator from Wisconsin is willing Senator from Michigan would not consider to be entertain­ to trust the President about everything else in this bill. ing to him, but I think he owes me the courtesy of listening Why is the Senator not willing to trust the President in that to me until I get through with my answer to his interrup­ respect? The Senator from WISConsin says there is not tion. enough money to go around. The Senator knows that his Mr. COUZENS. I was listening until I was interrupted by State is to get reforestation; he knows that it is not neces­ the delightful Senator from WISConsin [Mr. LA FoLLETTE]. sary to buy any of the public lands of his State; they are Mr. CONNALLY. I know the Senator from Michigan there already. Now, why is not the Senator willing for all meant no discourtesy, but since I was directing my remarks the States of the Union to have equal opportunity under to the Senator from Michigan I hope he will do me the this measure? great kindness to listen to me. I trust the Senator from Mr. BARKLEY. Mr. President, will the Senator yield? Wisconsin will pardon my interfering with his conversation Mr. CONNALLY. I yield. for the moment. If he will, I shall be very glad./ [Laugh­ Mr. BARKLEY. What would happen in a State like mine ter.] where there are no public lands of any kind? We have no I was just pointing out that the Senator from Michigan public lands in Kentucky. The only public lands there are comes from Detroit. He comes from the headquarters of probably little memorial graveyards of some kind. the great automobile industry, where are located General Mr. CONNALLY. Of Daniel Boone. Motors and Henry Ford, and he knows that it is not sound Mr. BARKLEY. Well, we have not even got that as yet, policy for Mr. Ford or the General .Motors to have one little though we hope that the last resting place of Daniel Boone factory in east Detroit making a few automobiles a week may be taken over before long. We have a project there to and another one on the west side of the town making a few make a national park out of the Mammoth Cave. The law more. which we passed for that purpose required the state of Mr. President, the proposition is that reforestation is a big Kentucky to donate to the Government 45,000 acres of land, project. It is necessary to have a lot of territory; indeed, and after that was done the Government was supposed to to have a preserve. It is not feasible to reforest 100 acres take it over as a national park. We have not been able to here, and 15 miles off another hundred acres, and 20 miles get as yet more than 35,000 acres, so that it is not yet a off another hundred acres. That is the condition of the national park. Outside of that and a few little monuments, public lands of my State. there are no public lands in the State. The State of Texas thought it better, according to the I am not prepared to advocate that the Government go in ideas and suggestions of the Senator from Idaho, to have promiscuously and indiscriminately and condemn lands and its lands sold to individual home owners and have them set­ buy them in. order to plant trees on them; but there are vast tled, to build up communities, and to build up counties than areas in the mountain section of Kentucky and in the Ten­ to hold them in a great untenanted reserve. The result has nessee Valley, which has been spoken of in connection with been that the only lands which my State owns are those Muscle Shoals, all of which are privately owned; there are which were turned back to it because those who acquired no public lands there; the areas are owned by private indi­ them could not pay the price, or lands which were in forests viduals. What is the reason for purchasing additional land and cut over and which have not produced new growth of adjacent to a piece of public land and at the same time timber. They are not productive from an agricultw·al stand­ ignoring all the lands in the State where there is no public point, and their only possible utility is under this very sort land? of a project fo.r reforestation. But if we are going to Mr. CONNALLY. The Senator is absolutely correct, and deny the President the power to acquire lands in east Texas, if he were in the Chamber a while ago and listened to the :where there were once fine forests of pine, if he cannot discussion, he knows that that was one of the points that acquire them, then my State is out of the picture so far as the Senator from Texas was undertaking to bring out, that this bill is concerned. My unemployed will still be unem­ in my State, as in his own State, we have no public lands, played; my hungry will still be hungry; my lands will still and this amendment will deny the benefits of this act to be barren; my lands will remain unforested, while the Sena­ those States. tor from Michigan, living in a State where the white-pine The Senator from Wisconsin a moment ago contended forests once grew, may see them watered and cultivated and that there is not enough money to purchase lands. :flourishing again, with Government money; and the Sena­ Well, under the amendment o! the Senator from Michigan tor from Wisconsin, the State of the lakes, will see every purchases can be made o! adjacent lands. The Senator lake fringed with a new forest out of the Treasury, out of my from Wisconsin is willing to buy the land so long as it is money and your money, the money of the people of my contiguous to some that the Government already owns; and State. His unemployed will have jobs; his hungry will it owns large areas in Wisconsin. fatten. Mr. COUZENS. Mr. President, will the Senator yield? Mr. LA FOLLETTE. Mr. President, will the Senator Mr. CONNALLY. I yield. yield? Mr. COUZENS. I think it is hardly fair for the Senator Mr. CONNALLY. I yield. to talk in that way, when the Senator from Kentucky raises Mr. LA FOLLETTE. One of the. reasons why I am in an old issue that has been all hashed over·. The effect is that sympathy with the amendment offered by the Senator from this proposal was put in this amendment because of the Michigan is that in my State, for instance, there are vast statement of the Senator who was handling the bill on the areas of cut-over lands, which are owned by private inter­ floor. This is not a suggestion of mine. ests; and if there were sufficient money available to provide Mr. CONNALLY. Then I withdraw all that I said about for the acquisition of land and for affording work relief, I the Senator and transfer it to the Senator from Massa­ should not be averse to the policy the Senator suggests; but. chusetts. with the limited sum of money available, I think the objec­ Mr. COUZENS. The Senator from Massachusetts agreed tive sought by the Senator from Michi&an 1s -a. worthy one- to this because it was in accord with the views of the Presi- 1933 ·coNGRESSIONAL RECORD-SENATE 925 dent of the United States. Now, if it will satisfy the Sena­ a separate bill providing a separate appropriation be pr~ tor from Kentucky and the Senator from Texas, I am sented. perfectly willing to cut out-and I will offer an amendment Mr. CONNALLY. I am willing to trust the President and to cut out-the provision for the purchase of any con­ give him this authority and let him have it. I am not ask­ tiguous property and then the Senator will have no com­ ing him to buy a foot of land in Texas. I want him to have plaint to make. authority with which the Senator from Massachusetts, Mr. BARKLEY. Mr. President, will the Senator yield claiming to represent the President, apparently is not will­ to me? ing to trust him. He is not willing to give him the author­ Mr. CONNALLY. Yes. ity. The Senator says, the President indicated he would Mr. BARKLEY. I am for this bill; I am not raising any not use the power except in extreme cases. The Senator criticism at all with reference to its provisions; and I am from Massachusetts, however, wants to prevent him from going to vote for it, whether it is amended or whether it is using it in even extreme cases. not amended; but I think it is no11 at all unfair to suggest I am willing to trust the President. I have got no land that there may be some localities that may not benefit I want to sell, and I do not know of anybody in my state under it. That may be all right; I am not localized; I am who has, but I think it is unjust for the Congress to pass a not provincial in my outlook upon this situation. If we can bill, supposedly for the relief of everybody in this Union, pass a good bill that will help Wisconsin and Michigan or and then to make it impossible for the President to do Idaho or any other State, even though we do not help my anything in States like Kentucky and Texas. State, I am willing to vote for it; but I want to find out The Senator from Massachusetts talked about a " separate where we are and to know whether there is anything in the bill" to do this. Why? Because he knows a separate bill Senator's amendment that would cure the situation to which would be pigeonholed in his or in some other committee I refer. and would never see daylight. When we are legislating on forestry we ought to legislate on all of it. We are dealing Mr. CONNALLY. Mr. President, I want to say to the with that policy now, and I hope the Senate will not show Senator from Michigan that the Senator from Texas meant a lack of confidence in the President by denying him the no reflection upon him or his motives, nor did he mean any authority which is requested in this bill as originally re­ reflection upon the Senator from Wisoonsin. The Senator from Texas was merely trying to point out that naturally ported by the Senator's committee. Mr. COPELAND. Mr. President, will the Senator yield? those Senators who come from States where there are public Mr. CONNALLY. I yield. lands know all about them and look at the question from Mr. COPELAND. It seems to me, Mr. President, that we the viewpoints of those States; but we do not; we do not did put a lot of language in the bill to cover the one thing have any public lands; we do not deal with them; we do the President had in his mind, which was largely the ques­ not know anything about them; and I was assuming that tion of the donation of property. It was made clear there the Senators had overlooked the fact that there are States was no authority for him to accept ·property, and he pointed like Kentucky and States like Texas that would get no out in our conference at the White House that in carrying benefit under this measure. I do not want to be provincial on this work in the matter of fire protection and flood con­ about this matter. Nobody in Texas has said a word to me trol it might happen that there would be adjoining a piece about it or telegraphed or written me. I simply have made of publicly owned land, another strip which could be ad­ these suggestions from a reading of the bill and a reading vantageously used for the protection of the public domain. of the amendment of the Senator from Michigan. If the So the real purpose of this section originally was to make it Senator from Michigan is acting on the suggestion of the possible to receive such property by donation. There was. Senator from Massachusetts, then I dil'ect my remarks to never any question that it could be purchased, but the ques­ the Senator from Massachusetts. tion was as to the right to receive property by donation. (""'Mr. WALSH.· I suggest that the Senator turn them on Mr. CONNALLY. Mr. President, let me say to the Senator, \the President. The amendment the committee has pro­ then, that the defeat of the amendment of the Senator from posed is approved by the President; and I call upon any Michigan will not interfere at all with what the Senator Senator who heard the President's statement to rise and say points out. The President still would have authority to buy whether I misquote him when I state that he emphatically contiguous land; he still would have authority to accept do­ asserted that he did not.want to go into the business of pur­ nations. The amendment of th-e Senator from Michigan, chasing public lands. \ however, is restrictive. It is prohibitive. It erects complete Mr. CONNALLY. Then why is such language used in the barriers against the State of Kentucky and the State of bill? Texas and perhaps other States of the Union. Mr. WALSH. Because he said that occasions might arise I think that every part of this Union is at least theoreti­ when it might be necessary to purchase land-for instance, cally a part of it and ought to be considered in any far­ in order to acquire a water supply for some camp-and in fiung scheme of rehabilitation or relief which the Senate that event it would be desirable to acquire land. proposes. Mr. CONNALLY. Since the Senator from Massachusetts Mr. COUZENS. Mr. President-- raised the issue about the President, I want to say I am Mr. CONNALLY. I yield to the Senator from Michigan. standing with the President; I am cooperating in carrying Mr. COUZENS. In view of what the Senator from New out the President's views; but the committee that has re­ York said, would it meet the views of the Senator from ported this bill was supposed to report a bill such as the Texas if we cut out the words " purchase or condemnation " President wanted. Is not that correct? The members of and left in the word" donation"? the committee work on it and they bring it in here and say, Mr. CONNALLY. I have not analyzed all of the Senator's " Here is a bill just like the President wanted; do not change amendment, but I do not see anything wrong with the sec­ it," and then they come in here with amendments and say tion as it stands. Why amend it? it ought to be changed. How can we rely on an assurance Mr. COUZENS. Because I do not want this money to like that when they themselves do not know what the Presi­ be taken out of the mouths of unemployed workers and put dent wants? into the hands of real-estate owners. Mr. WALSH. The committee did not think it wise to Mr. CONNALLY. I do not, either. authorize under this bill the general purchase of private Mr. COUZENS. That is just what we are doing if we leave lands by the President, and the President did not think it this section wide open. I am cooperating with the Presi­ was a wise policy; but we did include in the bill this author­ dent, and I do not want the President or any of his sub­ ity to which reference has been made, with the knowledge ordinates under pressure to buy from States and real-estate that the President would use it only in extreme emergency. men a lot of land and use up this money for that purpose. That is the reason why it is in the bill. As to the proposi­ Mr. CONNALLY. There is no disagreement between the tion to which the Senator from Texas refers, I suggest that Senator from Michigan and myself as to that purpose. The 926 CONGRESSIONAL RECORD-SENATE MARCH 28 President of the United States is not going to spend all of I think it is unthinkable that the President would do such this money for land and have nothing left with which to a thing. We know that that will not happen. There may be, compensate the workers who may be employed. however, as I understand, cases where some incidental prop­ Mr. COUZENS. I do not want him to spend any of it for erty may have to be taken in order to carry out the purposes that purpose. of the act; and my own prediction would be that the amount Mr. CONNALLY. The Senator, then, wants to circum­ of money spent for the purchase of property would be an scribe the President's power. insignificant portion of the amount appropriated. Mr. COUZENS. I want him to use the money for the Mr. COUZENS. Then why not have Congress say so? unemployed. I want him to use it to put people to work. Mr. WAGNER. We are trusting the President with the Mr. CONNALLY. The Senator from Wisconsin I:Mr. L.\ administration of this whole -matter. Why restrict him in FoLLETTE] has another measure here, carrying $500,000,000 this particular instance? more for the unemployed, in addition to this bill. Mr. COUZENS. Because the more we save out of buying Mr. COUZENS. That is entirely different from this camp real estate the more we.have to feed the unemployed with, and forestation idea which the President put up to us. and because the bill says specifically in section 2 that the Mr. CONNALLY. But that is the program. Reforesta­ President may assign this work to a head of a department. tion is what is in this bill, is it not? No one knows what pressure these departments and the Mr. COUZENS. On lands that are already owned by the President would be under to buy up these lands. Government or the States, as provided in section 1. Mr. WAGNER. I assure the Senator that the President Mr. BARKLEY and Mr. LONG addressed the Chair. will . knQw what is going on in every department of the Mr. CONNALLY. I yield first to the Senator from Ken­ Government. tucky. Then I shall yield to the Senator from Louisiana. Mr. COUZENS. If the President is able to know what Mr. BARKLEY. Mr. President, I have been trying to find each unemployed man is going to do, if he is able to know out what the Senator's amendment is. Unfortunately, I was what each veteran is going to do, how much he is going to called out of the Chamber whei his amendment was read. have his compensation cut, and all of those other details, It is to section 2 of the bill, as I understand. then he is a greater man than I have ever heard of. Mr. CONNALLY. It is to prevent the purchase of any Mr. WAGNER. Of course, I did not mean to suggest land. that he would know all the details. Mr. BARKLEY. The Senator's amendment applies to Mr. COUZENS. The Senator said that. section 2 of the bill? Mr. WAGNER. But I am sure the purchase of a sub­ -Mr. COUZENS. That is right. I am offering a substitute stantial piece of property would not be made without his for that section. authorization. We are quibbling about a very unimportant Mr. BARKLEY. As I understand, this section provides detail. that the President may enter into such contracts with Mr. COUZENS. Anything the Senator does not want, States, counties, municipalities, or other public bodies as he of course, is a detail; but anything that he wants is states­ may deem necessary, I presume, for the inauguration of manship. some kind of public project. It is not very clear just what Mr. CONNALLY. Mr. President, let me say to the Sen­ it means, but in that connection he is authorized to buy ator from Michigan that I applaud his fine outlook. I lands. have~ as the Senator knows, the very tenderest personal re­ Mr. COUZENS. Yes. gard for him, and I am not quarreling with his viewpoint; Mr. BARKLEY. What is the objection to that? but everybody knows that this whole bill trusts tremendous Mr. COUZENS. Because there is a very limited amount of power to the President. He is not going to permit all the money, 140 or 150 million dollars; and the more we spend money to be spent for land and have nothing with which for land to relieve landowners the less we will have with to feed the unemployed, because the purpose of the bill is which to feed the hungry. to feed the unemployed. It is unfair and unjust, however, Mr. BARKLEY. If we are going to have a project of any to circumscribe his powers and make it impossible for him kind that means the construction of anything on it, we must to carry out the purposes of the bill; so I hope the Senator have land on which to build it. will not insist on his amendment . . Mr. COUZENS. We have plenty of land as provided in Mr. LOGAN. Mr. President-- section 1. The PRESIDENT pro tempore. Does the Senator from Mr. BARKLEY. We may not have the land in the right Texas yield to the Senator from Kentucky? place. Mr. CONNALLY. I yield to the Senator from Kentucky. Mr. COUZENS. The Senator certainly is not going to Mr. LOGAN. I understand that the amendment of the leave the matter wide open, is he, so that all these depart­ Senator from Michigan is to prevent the purchase of land ment heads will be under pressure to buy lands from counties on which to carry out these projects. Is that the purpose and municipalities and States, and what little money we of it?. have with which to feed the unemployed will go to the land­ Mr. CONNALLY. That is the purpose-unless it is con­ owners? tiguous to presently owned. Federal land. Mr. BARKLEY. Oh, no! I do not assume that anybody, Mr. LOGAN. The power to purchase land where it would whether the President or anybody appointed under him, otherwise be procured by donation. or in some other man­ would go out and engage in the wholesale real-estate busi­ ner, will very greatly interfere with the entire project. I ness; but I cannot see where there would be any objection think- the Senator from Michigan is right. If we ever let to authorizing the President to buy whatever land is neces­ it be known that the Government of the United States has sary in order to carry out the contracts he may enter into the power to purchase a man's land, we will never get it with States, counties, or cities in the construction of any except by purchasing it and paying about 4 or 5 times what project that comes under this bill. That is entirely differ­ it is worth. ent from reforestation, as I understand. So I believe it would help the entire project if we should · Mr. WAGNER. Mr. President, will the Senator yield? prohibit the purchasing of land, as is provided for in the Mr. CONNALLY. I yield to the Senator from New York. amendment of the Senator from Michigan, and have the Mr. WAGNER. Does not the Senator regard it as un­ burden placed on someone else to procure the land. We thinkable that the President of the United States would cannot have land given to us, we cannot acquire it in any devote a large portion of this money, or any considerable way, if the owner of the ·land knows that the Government portion· of this money, to the purchase of real estate, in view of the United States has the power to purchase and ·pay for of the purpose of this legislation, . which is merely in the it. I have had some experience with trying that out; and nature of relief legislation to take care of these unfortunate land becomes very, very valuable when the Government of unemployed? · the United States wants it. 1933 CONGRESSIONAL RECORD-SENATE 927 Mr. CONNALLY. When the Government has to have it, The PRESIDENT pro tempore. Eighty-seven Senators of course, that is true; but the Government does not have having answered to their names, there is a quorum pres­ to buy any -of this land. The President does not have to buy ent. The question is on agreeing to the amendment of­ an acre of it; and I am not in favor of prohibiting him from fered by the senior Senator from Michigan [Mr. CouZENS] purchasing land if he finds it is necessary in order to carry to the committee amendment. out this program. Mr. COUZENS. I ask for a division. Mr. LOGAN. Suppose it is desired to acquire one tract of On a division, the amendment to the amendment was land, or a few tracts of land, within an area that the Gov­ agreed to. ernment has already acquired. Mr. CONNALLY. Mr. President, what was the result of Mr. CONNALLY. The Government can condemn it. the vote? Mr. LOGAN. If we say that the Government can·buy it, The PRESIDENT pro tempore. It is not customary to then it will have to condemn it; but if we say that the state the count in the case of a division, but the Chair will Government cannot buy it, then the owners will have a say, from his own count, that there were 2 to 1 in favor of direct incentive to donate it in order to have the project the amendment. carried out, or the local authorities will see to it that the Mr. CONNALLY. Mr. President, I want to make just property is acquired and 6onveyed to the Government. a comment on the way the Senate is doing business. Sen­ Mr. CONNALLY. I do not agree with the Senator from ators rush in here who never heard of the amendment that Kentucky. He says that if the Government is going to buy is being voted on, who have heard none of the debate, and land, a private owner will hold up the Government and make decide the issue. Those of us who are trying to stand by it pay 3 or 4 times as much as the land is worth, but that the administration bill and support it as it is written are if the Government will not buy the land he will probably overwhelmed by recruits who dash in from the cloakroom give it to the Government. That is a strange conception of and know nothing about the pending amendment, and are the cupidity of individuals. unwilling to trust the President as his wishes are set forth Mr. LOGAN. I should like to correct the Senator-not in the original bill. if the Government will not buy it, but if the Government Mr. DUFFY. Mr. President, I desire to offer an amend­ cannot buy it. Then he will probably donate it; but if the ment, to ask permissive authority only, on page 5, at the Government has the power to buy it, he will never turn it end of line 4, to insert the words which I send to the desk. loose until he gets many times what it is really worth. I may say that I have consulted with the Senator from Mr. CONNALLY. I do not follow the Senator there. I Massachusetts [Mr. WALSH], in charge of the bill, and others think a man who is so greedy that he has a desire to hold on the committee, and I believe they are agreeable to the up his Government and get 3 or 4 times what a piece of amendment. land is worth in case of a sale is not going to turn around Mr. WALSH. Mr. President, the amendment is recom­ and give it to the Government because the Government has mended by the Forestry Department. not any power to buy it. I do not understand human motives The PRESIDENT pro tempore. The amendment will be to work that way. They do not in my State, and I wonder stated. that they work that way in Kentucky. I do not believe The CHIEF CLERK. On page 5, at the end of line 4, the they do. Senator from Wisconsin proposes to insert the following Mr. LOGAN. I am sorry to say that they do work exactly words: that way in Kentucky, because I have seen them work, and The President is further authorized to allocate funds available I know whereof I speak. for the purposes of this act for forest research, including forest Mr. CONNALLY. The Senator must have in mind lands products investigations by the Forest Products Laboratory. that are not worth the payment of the taxes. The PRESIDENT pro tempore. The question is on agree­ I hope the amendment of the Senator from Michigan will ing to the amendment to the amendment. be rejected. Mr. CONNALLY. Mr. President, I do not think this The PRESIDENT pro tempore. The question is on the amendment should be agreed to. The senior Senator from amendment of the Senator from Michigan [Mr. CouZENS] Wisconsin [Mr. LA FoLLETTE] has already pointed out that ·to the amendment of the committee. [Putting the question.] there is no money appropriated in this bill for the purchase , Mr. COUZENS. I suggest the absence of a quorum. of any land; that it all ought to go to the unemployed. Mr. LONG. Mr. President, is this vote over? Then why spend a lot of money on a laboratory? I hope the Mr. COUZENS. The result was not ann-ounced. Senate will defeat the amendment. The PRESIDENT pro tempore. The clerk will call the roll. Mr. DUFFY. Mr. President, the Forest Products Labora­ The Chief Clerk called the roll, and the following Sen- tory is national in scope, and would have the means by this ators answered to their names: additional authorization, if the President saw fit to make use Adams Costigan La Follette Robinson. Ark. of it, very materially to aid in the employment of people Ashurst Couzens Lewta Robinson, Ind. Austin Dickinson Logan Russell presently unemployed. It is only permissive. Otherwise the Bachman Dieterich Lonergan Schall President would not have the power under the bill. I am Bailey Dill Long Sheppard willing to leave it to the President. Bankhead Du1fy McAdoo Shipstead Barbour Erickson McCarran Smith The PRESIDENT pro tempore. The question is on agree­ Barkley Fess McGill Steiwer ing to the amendment to the amendment. Black Fletcher McKellar Stephens Bone Frazier Metcalf Thomas, Okla. The amendment to the amendment was agreed to. Borah George McNary Thomas, Utah SWilriMING-EXERCISE TANK IN THE WHITE HOUSE Brown Goldsborough Murphy Townsend Bulow Gore Neely Trammell Mr. WAGNER. Mr. President, I ask that the proceedings Byrd Hale Norbeck Tydings Byrnes Harrison Norrts Vandenberg may be interrupted long enough to have a joint resolution Capper Hatfield Nye Van Nuys read, which I shall introduce, and for which I shall ask Caraway Hayden Overton Wagner immediate consideration. Carey Hebert Patterson Walcott Clark Johnson Pittman Walsh The PRESIDENT pro tempore. Is there objection? The Connally Kendrick Pope Wheeler Chair hears none, and the clerk will read the joint resolution. Coolidge Keyes Reed White 34) Copeland King Reynolds The joint resolution

BELIEF OF UNEMPLOYMENT Mr. TRAMMELL. We haveJ we will say, a continuing The Senate resumed the consideration of the bill

United States, very properly I thi.nk. objected to any such through this body to take $400.001>,.000 away from the dis­ measure as that._ They objected to it for a number of rea-­ abled veterans of America., to take $400.,000,000 out of their sons, and not the least was the fact that they felt that as pockets? We deprived them of that much income. We soon as such a scale of wages was paid by the United States take that much out of their pockets. We deprive them of Government every industry in the land the next day would that much purchasing power. We take another $125,000,000 undertake to establish the same wage scale. That would from the underpaid Federal employees. That is a total of mean that the standard of living in this country, of course, $52.5,000,000.. Mark you, we passed a bill which was called would be lowered all along the line and purchasing power an economy bill under the guise of balancing the Budget. would be decreased everywhere. So the bill was rewritten. That was given as the whole reason for it. The credit of I listened to the explanation submitted by the eminent the Nation was at stake, and it was necessary to balance the Senator from Massachusetts [Mr. WALsH]. I understand Budget. So we found these two classes of our citizens, the that to some degree at least in phraseology the language is disabled veterans and the Federal employees, who were prac­ now less unsatisfactory to the interests of American labor, tically helpless, and we decided to take this half billion but at the same time the bill gives the President the identical dollars out of their pockets. That we did. That was done power which the original would have granted him. Indeed, to balance the Budget. it gives him much greater power. Instead of a dollar a day, Now we propose to appropriate that same amount, $500,- if he desires to do so he can employ men at 50 cents a day, 000,000, half a billion dollars, that we just got through or he can employ them at $10 a day. The press informs us taking out of the pockets of the disabled veterans and the the President proposes to do just exactly what he would Federal employees, and put that $500,000,000 in the pockets have done had we passed the bill in the original form in of people who are unemployed in the country. In other which it' came here, namely, regiment labor in camps and words, we have just got through robbing, practically-it pay a wage scale of a dollar a day. That is not denied by amounts to that as I view it, because we have deprived· anybody here. It is not denied by the P:~;esident. The press them of vested rights--we have just got through robbing of the country carries a story to that effect, and I presume the disabled veterans and Government employees of the it is true. United States of half a billion dollars ill order to turn it Mr. HATFIELD. Mr. President-- right over to another class of our citizens in the same sum, The PRESIDING OFFICER. Does the Senator from In­ and the Budget still remains unbalanced! We are right diana yield to the Senator from West Virginia? where we started. Mr. ROBINSON of Indiana. I yield. The whole purpose of the economy bill was to balance the Mr. HATFIELD. May I ask how the Senator got the in­ Budget, but I point out to you, Mr. President, that the Bud­ formation that labor favors the bill in its present form? get is just where it was before. It was merely a matter of Mr. ROBINSON of Indiana. 0 Mr. President, perhaps bookkeeping. We transferred $500,000,000 from one class to I did not make myself clear. I would say to my good friend another. The figures have merely gone into another col­ from West Virginia th~t my understanding is that the umn and the Budget remains exactly where it was. It is phraseology now in the bill is perhaps more satisfactory to unbalanced and every Member of the Senate knows that it labor than the original draft of the bill as submitted here. will not be balanced this year or next year. Why not face However, I am convinced, as is my friend from West Vir­ the facts and let the country know that is the truth? Of ginia, that labor in the United States is still opposed to this course it will not be balanced. If the program the President measure in its present form for the reason suggested, that has in mind, as published in the press, should be carried the President can do precisely the same thing under the out, it will be billions of dollars more out of balance within terms of the bill as it is now before us that he could have the next 2 or 3 years. done under the terms of the bill as originally drafted. I am Wha.t difference does it make whether the indebtedness is definitely sure, may I say to my friend from West Virginia, outside of the Budget or inside of the Budget? The country that all labor connected with the building trades is opposed owes the money just the same, and just to that extent the to this measure, even as it is written now, and to its country's credit is strained. In other words, we constantly phraseology. increase the indebtedness of Uncle Sam. The public in­ Mr. HATFIELD. Yes; I am positive the Senator is right debtedness is constantly increasing, and the purchasing about that. power of the people is constantly decreasing. The whole Mr. ROBINSON of Indiana. Mr. President, much has program has been deflationary. been said· about diverting $140,000,000 or so from funds that I understand as well as anybody here that the American have been appropriated for other projects. Most of those people today are looking to President Roosevelt with hope projects are in the building trades. It is proposed today to and great trust. The desire is above all things to get out do just what we did the other day in the so-called" economy of the depression in which we find ourselves. My hope is bill." We take $140,000,000 from those people engaged largely that he will succeed in justifying the confidence of the peo­ in the·building trades-carpenters, bricklayers, stone masons, ple and will not disappoint them. It would be catastrophic and others who would be employed in the building projects in the extreme, in my judgment, if they should have their in which the Government is interested-and we give the hopes blasted, if this whole program should fail. money to other men, the only difference being that whereas I hope I am patriotic enough to do everything in my power we have been holding up the wage scale in the building to help make the program succeed; but I feel that I should projects, under this new-fashioned scheme-assuming the be derelict in my duty did I not point out to the Senate this press quotes the President correctly-we will pay all labor fact, which it seems to me is so plain that all may see. conscripted in this manner a dollar a day, and the building Everything that has been done since the 4th of March this trades will suffer accordingly. year has been deflationary. For instance, take the bank Mr. President, I understand this bill is to be followed by bill which we passed and as a result of which we placed other appropriations and that ultimately 250,000 men will dictatorial power in the hands of the President, giving hiin be employed in the reforestation program. I understand the power of life and death over all financial institutions that it will require an outlay of half a billion dollars-­ of the country. Mr. President, the net result of that bill $500,000,000-before we are through with this program this will be-and there can be no question about it, I think­ year. I understand the $140,000,000 will carry on the work that the depositors of the banks of the United States will be until the 1st of May. If it takes $140,000,000 to conduct defiated to the extent of $10,000,000,000. That means to this experimental work until the 1st of May, it is reason­ say that the country will hav8-in fact, has at this minute­ able to assume, and I think it is perhaps admitted., that it $10,(){)0,000,000 less pmchasing power than it would have will cost at least $500,000,000 during the rest of this calendar had had this situation not arisen. That is entirely defla­ year. That will be $500,000,009 more. tionary. Mr. President, need I remind the Senate that just a few In the next place, we took $525,000,000 worth of purchas­ days ago, under the guise of economy, we passed a measure ing power away from the disabled veterans of the country 1933 CONGRESSIONAL RECORD-SENATE 937 and the Government workel's. That also is deflabonary. Thomas, Okla. Trammell · Van Nuyg Walsh Thomas, Utah Tydings Wagner Wheeler What the country needs is increased purchasing power, not Townsend Vandenberg Walcott White decreased purchasing power. Mr. LEWIS. Mr. President, I rise to announce the ab­ Then we passed the beer bill; and I am willing to say to sence of the Senator from New Mexico [Mr. BRATTON] on my friends, both on this side and the other side, t~at ~ official business. I ask that the announcement remain for the end that will prove to be deflationary, because 1t will the day. divert money that today is being expended in the homes for food and clothing to the brewers of the country in the foTm Mr. BYRD. I wish to announce that my colleague the of money paid for beer. . senior Senator from Virginia [Mr. GLASS] is unavoidably Until we start going up hill by providing more purchasmg detained from the Senate. power there can be no real prosperity in this country. We Mr. HEBERT. The Senator from Missouri [Mr. PATTER­ soN] is absent on account of illness in his family. have got to find a way to start the wheels of indus~ turn­ ing. Instead of going down hill, as we have been gomg .an The junior Senator from Pennsylvania [Mr. DAVIS] is the way along, we must start going up toward prospent!. still absent on account of illness. Mr. President, I think the whole system up to date 1s The Senator from Vermont [Mr. DALE], the Senator from wrong; I think we are headed downward to an abyss of Delaware [Mr. HASTINGS], the Senator from Pennsylvania disaster· but I think there is still time to turn around and [Mr. REED], the Senator from New Mexico [Mr. CuTTING], go back 'the other way. Unless we do so, the catastrophe will and the Senator from Minnesota [Mr. SCHALL] are neces­ be far worse than anything we have thus far seen, and sarily absent. human misery wm be tremendously increased within the The VICE PRESIDENT. Eighty-four Senators have an­ next 2 months. swered to their names. A quorum is present. The Senate What will you do the next time if depositors start runs on will receive a message from the President of the United these banks we have reopened? What will you do then? States. That is the next problem to get ready for. Increased pur­ MESSAGE FROM THE PRESIDENT chasing power is what the country needs. Up to this A message in writing from the President of the United moment we have been decreasing purchasing power; ever States was communicated to the Senate by Mr. Latta, one since March 4 the policy has been deflationary; and I submit of his secretaries. to my friends, especially on the other side of the Chamber, (The message was received by Mr. Bi.ffie and handed to that, in my humble judgment, the thesis is wrong and the the Vice President.> policy unsound. MESSAGE FROM THE PRESIDENT-REGULATION OF SECURITY ISSUES The PRESIDING OFFICER. The question is, Shall tht' bill pass? The VICE PRESIDENT. The Chair lays before the Sen­ Mr. HALE called for the yeas and nays. ate a message from the President of the United States, The yeas and nays were not ordered, and the bill was which will be read. passed. The Chief Clerk read the message, as follows: APPROVAL OF THE JOURNAL To the Congress: Mr. ROBINSON of Arkansas. Mr. President, I ask unani­ I recommend to the Congress legislation for Federal mous consent that the reading of the Journal be dispensed supervision of traffic in investment securities in interstate with, and that the Journal for March 23 and March 27, 1933, commerce. stand approved. In spite of many state statutes the public in the past has The PRESIDING OFFICER. Without· objection, it is so sustained severe losses through practices neither ethical nor ordered. honest on the part of many persons and corporations selling RECESS securities. · Mr. ROBINSON of Arkansas. Mr . .President, unless there Of course, the Federal Government cannot and should not is some further business to come before the Senate, I move take any action which might be construed as approving or that the Senate take a recess until12 o~clock noon tomorrow. guaranteeing that newly issued securities are sound in the The motion was agreed to; and the Senate took a recess until tomorrow, erties which they represent will earn profit. Wednesday, March 29, 1933, at 12 o'clock meridian. There is, however, an obligation upon us to insist that every issue of new securities to be sold in interstate com­ SENATE merce shall be accompanied by full publicity and informa­ tion, and that no essentially important element attending WEDNESDAY, MARCH 29, 1933 the issue shall be concealed from the buying public. (Legislative day of Monday, Mar. 13, 1933> This proposal adds to the anci.ent rule of caveat emptor, the further doctrine," Let the seller also beware." It puts the The Senate met at 12 o'clock meridian, on the expiration burden of telling the whole truth on the seller. It should of the recess. give impetus to honest dealing in securities and thereby Mr. LEWIS. Mr. President, I suggest the absence of a bring back public confidence. quorum, and ask for a roll call. The purpose of the legislation I suggest is to protect the The VICE PRESIDENT. The clerk will call the roll. public with the least possible interference to honest business. The Chief Clerk called the roll, and the following Senators This is but one step in our broad purpose of protecting answered to their names: investors and depositors. It should be followed by legislation Adams Clark Harrison McNary Austin Connally Hatfield Metcalf relating to the better supervision of the purchase and sale of Bachman Coolidge Hayden Murphy all property dealt in on exchanges, and by legislation to Bailey Copeland Hebert Neely correct unethical and unsafe practices on the part of officers Bankhead Costigan Johnson Norris Barbour Couzens Kean Nye and directors of banks and other corporations. Barkley Dickinson Kendrick Overton What we seek is a return to a clearer understanding of the Black Dieterich Keyes Pittman ancient truth that those who manage banks, corporations, Bone Dill King Pope Borah Du1fy La Follette Reynolds and other agencies handling or using other people's money Brown Erickson Lewis Robinson, Ark. are trustees acting for others. Bulkley Fess Logan Robinson, Ind. Bulow Fletcher Lonergan Russell FRANKLIN D. ROOSEVELT. Byrd Frazier Long Sheppard THE WHITE HOUSE, March 29, 1933. Byrnes George McAdoo Shipstead Capper Goldsborough McCarran Smith Caraway Gore McGlli Steiwer The VICE PRESIDENT. The message will be referred to carey Hale McKellar Stephen.t the Committee on the Judiciary and printed. 938 _CONGRESSIONAL RECORD-SENATE MARCH 29 Mr. ROBINSON of Arkansas. Mr. President, the Senator Commission and the statement so filed shall be avallable for publtc from Arizona [Mr. AsHuRsT 1 is necessarily temporarily ab­ inspection. Section 9 assumes that all purchasers rely upon the representa­ sent from the Senate. I ask leave, out of order, to introduce tions contained in the statement and makes all the signers of such in behalf of that Senator a bill having relation to the sub­ statement jointly and severally lia.ble to the purchasers for dam­ ject matter of the message just read and to have the bill ages in the event of any material misrepresentation contained therein. Misrepresentations in the statement or advertising when referred to the Committee on the Judiciary. made with the knowledge of their falsity will subject the signers The bill (S. 875) to provide for the furnishing of informa­ to the Federal fraud and perjury laws. tion and the supervision of traffic in investment securities Section 10 makes it unlawful to represent that registration with in interstate commerce was read twice by its title and the Commission constitutes the Commission's approval. Section 11 exempts certain securities from the terms of the act referred to the Committee on the Judiciary. such as those issuing under the Federal Government and our Mr. ASHURST subsequently said: Mr. President, I was States, or the subdivisions of the Federal or State Government. unavoidably detained from the Chamber this morning, and Section 12 exempts certain transactions such as judicial sales and isolated transactions by Individuals. the senior Senator from Arkansas [Mr. RoBINSON] very Section 13 empowers the Attorney General at the request of the kindly introduced a bill in my behalf. I ask unanimous Commission to prosecute for fraud in the interstate offer or sale consent to print in the RECORD at this point an analysis of of securities. The exemptions of sections 11 and 12 are not the bill, which analysis has been prepared by Mr. Huston applicable to this provision. Section 14 declares that it shall be a Federal offense to trans­ Thompson, with the approval of the Secretary of Com­ mit or offer in interstate commerce securities that do not meet merce. the requirements of the State in which they are to be sold. This There being no objection, the analysis was referred to the is an application to the sale of securities similar to that applied under the Webb-Kenyon law to the prohibition against the sale Committee on the Judiciary and ordered to be printed in and transportation of liquor into dry States. In this section also the RECORD, as follows: it is specifically provided that the exemptions of sections 11 and THIS ANALYSIS OF THE PROPOSED FEDERAL SECURITIES ACT HAS BEEN 12 do not apply. PREPARED BY MR. HUSTON THOMPSON WITH THE APPROVAL OF SEC­ Section 15 empowers the Commission to make necessary rules RETARY OF COMMERCE ROPER and regulations. The Federal Securities Act is a bill to provide for the furnishing Section 16 gives jurisdiction to the Federal district courts to en­ of information and the supervision of traffic in investment securi­ force the ·criminal provisions of the act and the various orders of ties in interstate commerce. the Commission. Sections 1 and 2 contain the title of the bill and certain defi­ Section 17 provides the penalty of not more than $5,000 or 5 nitions on the following subjects: "Security", "person", "sale", years in jail, or both, for any officer, director, or agent of any "issuer", "Commission" (meaning the Federal Trade Commis­ corporation knowingly participating in the violation and conviction sion, which is to have jurisdiction under the bill), "mortgage", under this act. "title", and "interstate cQmmerce!' An appropriation clause follows. Section 3 sets forth certain requirements in the matter of the sale and advertisement of securities in interstate commerce and Mr. KING. Mr. President, the bill which the Senator forbids such sale or advertisement until certain information shall from Arkansas introduced a few moments ago was referred have been filed with the Commission. This section covers the to the Committee on the Judiciary, of which I am a mem­ subjects of- ber. In view of the fact that the Committee on Banking (a) The sale or offer to sell domestic securities in interstate commerce; and Currency has been considering the question involved (b) The advertisement of domestic securities through Inter­ in the bill, in connection with the measure I introduced, as state medium, including not only newspapers, circulars, and maga­ well as other measures, I was wondering whether the bill zines but also radio; (c) The physical transportation of domestic securities across introduced by the Senator from Arkansas should not go to State lines; and that committee. (d) The sale or offer to sell by persons or corporations of Mr. ROBINSON of Arkansas. Mr. President, I took some the securities of foreign governments in the United States. Section 4 provides that the promoters, principal officers, and advice about the matter of the reference of the bill, and directors of corporations shall sign the statement except in the concluded that it should go to the Committee on the Judi­ . case of securities issued by foreign governments, when the state­ ciary. There are involved some questions pertaining to ment shall be signed by persons in the United States negotiating law and constitutionality, and after taking the advice to or underwriting the loan for the sale in the United States. Section 5 designates the information required in the statements which I have already referred, I asked the reference to the to be filed with the Commission and consists of two subdivisions­ Committee on the Judiciary. (a) information required of domestic corporations and (b) infor­ Mr. KING. I may, on further considering the matter, mation required concerning foreign government securities. In the case of domestic securities it requires the names of the issuers ask that the Committee on Banking and Currency be dis­ of the stock, promoters, trustees, officers, etc.. the amount of charged from the further consideration of the bill which I paid-up capital, the numbers and types of shares, with the introduced, and that it also be referred to the Committee description of their respective voting rights, dividends, profits, the amount of funded debt, a balance sheet showing a detailed list on the Judiciary; but I shall pretermit that request at the of assets and Uab1lities, a statement of the amount of the issuer's present time. income, expense, and fixed charges during the preceding fiscal Mr. ROBINSON of Arkansas. I think that either the year; the plan of the proposed issuer, the price offered to the Committee on the Judiciary or the Committee on Banking public, all bonuses, commissions, and the amount returned to capital investment, together with the names of all of those com­ and CUrrency might have jurisdiction, but after looking posing the syndicate. into the matter, it was my conclusion that this particular In the case of the securities issued by foreign governments the bill should go to the Committee on the Judiciary. American representatives sha.ll state the purpose, date, and terms or the loan, the underwriting agreement, members or the syndicate. Mr. JOHNSON. Mr. President, I want to say to the Sen­ bonuses, commissions, and amount to be returned to the foreign ator from Arkansas that three similar measures are already government, the security pledged with the loan, and the general before the Committee on the Judiciary. In addition to financial condition of the borrowing government and whether it has ever defaulted on principal or interest on any security sold that, one measure of cognate application was considered by in the United States, together with the proposed method of dis­ a subcommittee of the Committee on the Judiciary during tribution and price of the security as oft'ered here. the last session, and reported back to the full committee. I A fee of one one-hundredth of 1 percent of the value of think the reference to the Committee on the Judiciary, in the securities will be charged for registration with the Com­ mission. view of what has transpired, is quite appropriate. Section 6 empowers the Commission to revoke the registration Mr. ROBINSON of Arkansas. I thank the Senator from of domestic securities. Some of the grounds stated are insolvency California. of the issuer, violation of the act, previous or present engagements in fraudulent transactions, fraudulent representations in adver­ SUPREME COURT DECISION IN APPALACHIAN COAL CASE tising the security. Mr. COSTIGAN. Mr. President, on March 21 the learned Section 7 provides for judicial review in the event of an order of revocation by the Commission to the Court of Appeals o! the senior Senator from Utah [Mr. KING] suggested to the Sen .. District of Columbia. ate his apprehension that the so-called Appalachian deci­ Section 8 prohibits the interstate advertisement either written sion of the Supreme Court of the United States may un­ or spoken of domestic and foreign securities subject to this act unless the communication contains certain information concerning fortunately operate to abrogate some provisions of the the securities offered as required by the Commission and the act. Sherman antitrust law and the Clayton Act. An exaznina .. Copies of all such advertising material must be filed with the tion of the opinion of the Court leads me to conclude that 1933 CONGRESSIONAL RECORD-SENATE 939 the fears of the Senator from Utah are substantially un­ mines In Appalachian territory .• The company agrees to establish standard classifications, to sell a.n the coal of all its prtnctpals at founded. the best prices obtainable, and, if all cannot be sold, to apportion The Court in that case held that the evidence- orders upon a stated basis. The plan contemplates that prices are to be fixed by the offi.cers of the company at its central office, save makes it tmpossible to conclude that defendants through the that, upon contracts calling for future deliveries -after 60 days, the will fix operation of their plan be able to the price of coal in the company must obtain the producer's consent. The company 1s to consuming markets. be paid a commission of 10 percent of the gross selling prices f.o.b. at the mines and guarantees accounts. In order to preserve The Court also held: their existing sales outlets the producers may designate subagents The proof clearly shows that wherever their selllng agency according to an agreed form of contract, who are to sell upon the operates it will find itself con!ronted by etrective competition terms and prices established by the company and are to be allowed backed by virtually inexhaustible sources of supply, and wm also by the company commissions of 8 percent. The company has not be compelled to cope with the organized buying power of large yet begun to operate as selling agent; the contracts with it run to consumers. The plan cannot be sa.ld either to contemplate or April 1, 1935, and from year to year thereafter unless terminated to involve the fix1ng of ma.rket plices. by either party on 6 months' notice. The Government's contention, which t~ district court sus­ The Court further held: tained. 1s that the plan violates the Sherman Antitrust Act, in A cooperative enterprise. otherwise free from objection, which Ule view that it eliminates competition among the defendants carries with it no monopolistic menace, ts not to be con­ found to be desirable in constitutional provisions. It does not go ducers of bituminous coal in eight districts (called for conveni­ into detailed de:finltions which might either work injury to legiti­ ence "Appalachian territory ") lying in Virginia.. West Vlrg1nla. mate enterprise or through particularization defeat its purposes Kentucky, and Tennessee. These districts, described as the south­ by providing loopholes for escape. The restrictions the act im­ em high volatile field, form part of the coal-bearing area stretch­ poses are not mechanical or artificial. Its general phrases, inter­ ing from central and western Pennsylvania. through eastern preted to attain its fundamental objects, set up the essential stand­ Ohio, western Maryland, West Virginia, southwestern Virginia, ard of reasonableness. They can for vigilance in the detection eastern Kentucky, eastern Tennessee, and northeastern Alabama. and frustration of all efforts unduly to restrain the free course of In 1929 (the last year for which complete statistics were available) interstate commerce, but they do not seek to establish a mere the total production of bituminous coal east of the Miss1sslpp1 delusive liberty either by making impossible the normal and fair River was ~.786,000 tons, of which defendants mined 58,011.367 expansion a! that commerce or the adoption of reasonable meas­ tons, or 11.96 percent. In the so-called "Appalachian territory" ures to protect it from injurious and destructive practices and to and the immediately surrounding area the total production was 107,- promote competition upon a sound basis. The decisions estab­ 008,209 tons, of which defendants' production was 54.21 percent, or lish, said this Court in Nash v. United States (229 U.S. 373, 376), 64 percent if the output of "captive" mines (16,455,001 tons) be " that only such contracts and combinations are within the act d.educted.1 With a further deduction of 12,000,000 tons of coal as, by reason of intent or the inherent nature of the contemplated produced in the immediately surrounding territory, which, how­ acts, prejudice the public interests by unduly restricting compe­ ever, is not essentially dl.tferent :from the particular area described tition or unduly obstructing the course of trade." (See Standard in these proceedings as Appalachian territory, defendants' produc­ Oil Co. v. United States, 221 U.S. 1; United States v. American tion in the latter region was found to amount to 74.4 percent.2 Tobacco Co., 221 U.S. 106; Chicago Board of Trade v. United The challenged combination lies in the creation by the de­ Sta.tes, 246 U.5. 231, 238; Window Glass Manufacturers v. United fendant producers of an exclusive selling agency. This agency is States, 263 U.S. 403, 412; Maple Flooring Association v. United the defendant Appalachian Coals, Inc., which may be designated as States, 268 U.S. 563, 583, 584; Para.mount Fa.mous Corpora.tion v . .. the company ". Defendant producers own all its capital stock, United States, 282 U.S. 30, 43; Standard Oil Co. v. United States, their holdings being in proportion to thelr production. The major­ 283 u.s. 163, 169.) tty of the common stock, which has exclusive voting right, 1s held In applying this test, a close and objective scrutiny of particular by 17 defendants. By uniform contracts, separately made, each de­ conditions and purposes ts necessary in each case. Realities must fendant producer constitutes the company an exclusive agent for dominate the judgment. The mere fact that the parties to an the sale of all coal (with certain exceptions) which the producer agreement eliminate competition between themselves is not enough to condemn it. .. The legality of an agreement or regu­ so 1" Captive" mines are thus designated as they produce ehiefiy lation cannot be determined by simple a test, as whether it for the consumption of the owners. restrains competition. Every agreement concerning trade, every 2 Defendants contend that, in calculating their position upon a regulation of trade, restrains" (Chicago Board of Trade v. United. percentage basis, surrounding territory should be included and States, supra). The familiar illustrations of partnerships, and en­ that their percentage thus lies "somewhere between 54-21 and 64 terprises !alrly integrated in the interest of the promotion of percent." The district court fc;mnd: "The coal produced in the commerce, at once occur. The question of the application of the surrounding territory is the same kind of coal as that produced in statute is one of intent and effect, and is not to be determined by the Appalachian territory and is suitable for the sanie purposes an d available to the same markets, generally on the same freight a Exception is made to deliveries on contracts then outstanding rates, and for all practical purposes might have been included in and of coal used in the operations at defendant's mines or sold to the territory described as Appalachian territory." its employees. 940 CONGRESSIONAL RECORD-SENATE MARCH 29 arbitrary assumptions. It is therefore necessary in this instance stanttal tonnages .. constitute nn!avorable forces." "The highly to consider the economic conditions peculiar to the coal industry, organized and concentrated buying power which they control and the practices which have obtained, the nature of defendants• plan the great abundance of coal available have contributed to make of making sales, the reasons which led to its adoption, and the the market for coal a buyers' market for many years past." probable consequences of the carrying out of that plan 1n rela­ It also appears that the H unprofit able condition" of the in­ tion to market prices and other matters affecting the publlc dustry has existed, particularly tn the Appalachian territory where interest in interstate commerce in bituminous coal. there is little local consumption, as the region is not industrial­ Second. The findings of the district court, upon abundant evi­ ized- " The great bulk of the coal there produced is sold in the dence, leave no room for doubt as to the economic condition of the highly competitive region east of the Mississippi River and north coal industry. That condition, as the district court states. "for of the Ohio River under an adverse freight rate which imposes many years has been indeed deplorable." Due largely to the ex­ an unfavorable differential from 35 cents to 50 cents per ton." • pansion under the stimulus of the Great War, "the bituminous And in a graph1c summary of the economic situation the court mines of the country have a developed capadty exceeding 700,- found that "numerous producing companies have gone into bank­ 000,000 tons" to meet a demand "of less than 500,000,000 tons." ruptcy or into the hands of receivers., many mines have been In connection with this increase in surplus production, the con­ shut down, the number of days of operation per week have been sumption of coal in all the industries which are its largest users greatly curtailed, wages to labor have been substantially lessened, has shown a substantial relative decline. The actual decrease is and the States in which coal-producing companies are located partly due to the industrial condition, but the relative decrease is have found it increasingly diffi.cult to collect taxes." progressing, due entirely to other causes. Coal has been losing Third. The findings also fully disclose the proceedings of the markets to oil, natural gas, and water power, and has also been defendants in formulating their plan and the reasons for its losing ground due to greater efficiency in the use of coal. The adoption. The serious economic conditions had led to discussions change has been more rapid during the last few years by reason of among coal operators and State and National officials seeking im­ the developments of both oil and gas fields. The court below found provement of the industry. Governors of States had held meet­ that "based upon the assumption that bituminous coal would ings with coal producers. The limits of official authority were have maintained the upward trend prevailing between 1900 and apparent. A general meeting of producers, sales agents, and at­ 1915 in percentage of total energy supply in the United States, torneys was held in New York in October 1931, a committee was the total substitution between 1915 and 1930 has been equal to appointed, and various suggestions were considered. At a second more than 200,000,000 tons per year."' While proper allowance general meeting in December 1931, there was further discussion must be made for differences in consu:mption in different parts and a report which recommended the organization of regional of the country,~ the adverse infiuence upon the coal industry, sales agencies, and was supported by the opinion of counsel as to including the branch of it under review, of the use of substitute the legality of proposed forms of contract was approved. Com­ fuels and of improved methods is apparent. mittees to present the plan to producers were constituted !or 18 This unfavorable condition has been aggravated by particular producing districts, including the 8 districts in Appalachian terri­ practices. One of these relates to what is called "distress coal." tory. Meetings of the representatives of the latter districts re­ The greater part of the demand is for particular sizes of coal, such sulted in the organization of defendant Appalachian Coals, Inc. as nut and slack, stove coal, egg coal, and lump coal. Any one It was agreed that a m1n1mum of 70 percent and a maximum of size cannot be prepared without making several sizes. According 80 percent of the commercial tonnage of the territory should be to the finding of the court below, one of the chief problems of the secured before the plan should become efi'ective. Approximately industry is thus involved in the practice "of producing different 73 percent was obtained- A resolution to fix the maximum at 90 sizes of coal, even though orders are on hand for only one size, and percent was defeated. The maximum of 80 percent was adopted the necessity of marketing all sizes." Usually there are no storage because a majority of the producers felt that an organization with facilities at the mines, and the different sizes produced are placed a greater degree of control might unduly restrict competition in in cars on the producer's tracks, which may become so congested local markets. The minimum of 70 percent was fixed because it that either production mu&t be stopped or the cars must be moved was agreed that the organization would not be effective without regardless of demand. This leads to the practice of shipping un­ this degree of control. The court below also found that it was the so~d coal to billing points or on consignment to the producer or expectation that similar agencies would be organized in other his agent in the consuming territory. If the coal is not sold by producing districts, including those which were competitive with the time it reaches its destination, and is not unloaded promptly, Appalachian coal, and that it was " the particular purpose of the it becomes subject to demurrage charges which may exceed the defendants in the Appalachian territory to secure such degree of amount obtainable for the coal unless it is sold quickly. The control therein as would eliminate competition among the 73 court found that this type of "distress coal" presses on the mar­ percent of the commercial production." But the court added: ket at all times, includes all sizes and grades, and the total .. However, the formation of Appalachian Coals was not made amount from all causes is of substantial quantity. dependent upon the formation of other regional selling agencies, "Pyramiding" of coal is another "destructive practice." It and there is no evidence of a purpose, understanding, or agree­ occurs when a producer authorizes several persons to sell the same ment among the defendants that in the event of the formation coal, and they may in turn offer it for sale to other dealers. In of other similar regional sales agencies there would be any under­ consequence " the coal competes with itself, thereby resulting in standing or agreement, direct or indirect, to divide the market abnormal and destructive competition which depresses the price territory between them or to limit production or to fix the price for all coals in the market.'' Again, there is misrepresentation by of coal in any market or to cooperate in any way." When, in some producers in selling one size of coal and shipping another January 1932, the Department of Justice announced its adverse size which they happen to have on hand. "The lack of standardi­ opinion. the producers outside Appalachian territory decided to zation of sizes and the misrepresentation as to sizes" are found to hold their plans tn abeyance pending the determination of the have been injurious to the coal industry as a whole. The court question by the courts. The district court found that "the evi­ added, however, that the evidence did not show the existence of dence tended to show that other selling agencies with a control of any trade war or widespread fraudulent conduct. The industry at least 70 percent of the production in their respective districts also suffers through "credit losses", which are due to the lack of will be organized if the petition in this case is dismissed "; that agencies for the collection of comprehensive data with respect to in that event " there will result an organization in most of the the credits that can safely be extended. districts whose coal is or may be competitive with Appalachian In addition to these factors the district court found that or­ coal; but the testimony tends to show that there will still be sub­ ganized buying agencies and large consumers purchasing sub- stantial, active competition in the sale of coal in all markets in which Appalachian coal ts sold.'' • The findings show that " the number of domestic oil burners in Defendants refer to the statement of purposes in their pub­ use has increase more than sixtyfold • • • from 1921 to lished plan of organization, that it was intended to bring about 1931. • • • About 50 percent o! all oil burners. both domestic .. a better and more orderly marketing of the coals from the region and commercial, are in the markets in which Appalachian coals to be served by this company [the selling agency] and better to are sold. The railroads have improved combustion methods and enable the producers in this region, through the larger and more reduced their fuel consumption from 1916 to 1929 by 32,000,000 economic faciltties of such selling agency, more equally to com­ tons. In freight service their consumption of coal per thousand pete in the general markets for a fair share of the available coal freight ton miles dropped from 164 pounds in 1919 to 125 pounds business." The district court found that among their purposes, in 1929. The electric industries decreased consumption of coal per defendants. sought to remedy "the destructive practice of shipping kilowatt-hour from approximately 3.2 pounds to 1.6 pounds and coal on consignment without prior orders for the sale thereof, thereby reduced their requirements for coal in excess of 47,000,000 which results in the dumping of coal on the market irrespective tons. Efficiency in the smelting of pig iron decreased the con­ of the demand"; "to eliminate the pyramiding of offers for the sumption of coal 1n relation to the pig iron made by 10,000,000 sale of coal"; to promote "the systematic study of the marketing tons. The saving in by-product coke manufactures over the bee­ and distribution of coal, the demand and the consumption and hive system amol.lllted to 12,000,000 tons." the kinds and grades of coal made and available for shipment 6 The court below points out that •• the use of natural gas and by each producer in order to improve conditions"; to maintain fuel oil is limited to certain areas. Gas is not available to all an inspection and engineering department which would keep in sections of the country and the great centers of fuel-oil con­ constant contact with customers "in order to demonstrate the sumption are California, the Southwest, the midcontinent field, advantages and suitability of Appalachian coal in comparison with and the Atlantic seaboard. Moreover, in the States in which Ap­ other competitive coals u; to promote an extensive advertising palachian coal is chiefly marketed the substitute fuels combined campaign which would show .. the advantages of using coal as a supply only about 10 percent o! the total energy consumption. In fuel and the advantages of Appalachian coal particularly"; to the year 1929 about 50 percent of defendants' coal, other than provide a research department employing combustion engineers railroad fuel, went into the States of Ohio, Michigan, Indiana, and which would demonstrate " proper and efficient methods of Tillnols." In these States the percentage of total energy consump­ tion derived from bituminous coal 1n 1929 ranged from 88.7 per­ • Defendants insist that " the real spread ts from 25 cents to cent to 92.7 percen~ •1.84 per ton." 1933 CONGRESSIONAL RECORD-SENATE 941 burning coal In factories and 1n homes '' and thus aid producers Consumers test111ed that defendants' plan will be a benefit to in their competition with substitute fuels; and to operate a the coal industry and will not restrain competition. Testimony credit department which would. build up a record with respect to that etfect was given by representatives of the Louisville & to the .. rel1ab111ty of purchasers." The court also found that Nashville Ratlroad, the Norfolk & Western Railroad, and the " defendants believe that the result of all these activities would Chesapeake & Ohio Railroad, •• the largest railroad users of coal be the more economical sale of coal, and the economies would be operati~ in the Appalachian region", and by representatives of more fully realized as the e~ation of the selling agent is large utility companies and manufacturing concerns.• There was perfected and developed." But in view of the designation o! similar testimony by wholesale and retail dealers in coal. There subagents. economies in selling expenses would be attained .. only are 180 producers of coal other than defendants in Appalachian after a year or so cxf operation." territory who sell coal commercially. There are also "a large No attempt was made to 11m.lt production. The producers de­ number of mines that have been shut down and could be opened cided that it could not legally be limited and, in any event, it up by the owners on short notice." Competing producers testi­ could not be limited practically. The finding is that "it was de­ fied that the operation of the selling agency, as proposed by de­ signed that the producer should produce and the selling agent fendants, would not restrain competition and would not hurt should sell as much coal as possible." The Importance of in­ their business. Producers in western Pennsylvania, Alabama, Ohio, creasing sales is said to lie in the face that the cost of produc­ and illinois testified to like effect. Referring to this testimony, tion is directly related to the actual running time of the mines. the court below added: .. The small coal producer can, to some extent, and for the purpose of producing and marketing coal, pro­ Fourth. Voluminous evidence was received with respect to the duce coal more cheaply than many of the larger companies, and effect of defendants' plan upon market prices. As the plan has not gone ,into operation, there are no actual resuJ..ts upon which to is not prevented by higher cost of operation from being a com­ base conclusions. The question is necessartly one of prediction. petitor in the market." The court below found that, as between defendants themselves, The Government criticizes the .. opinion testimony " introduced competition would be eliminated. This was deemed to be the by defendants as relating to a competitive situation not w1thin necessary consequence of a common selllng agency with power to the experience of the witnesses, and also animadverts upon their fix the prices at which it would make sales !or its principals. De­ connections and interests. but the Government did not offer testi­ fendants insist tha.t the finding is too broad and that the dif­ mony of opposing opinions as to the etfect upon prices of the ferences in grades of coal of the same sizes and the market de­ operation of the selling agency. Consumers who testified for the mands at different times would induce competition between the Government explained their dependence upon coal from Appa­ coals sold by the agency " depending upon the use and the lachian territory. quality of the coals." The district court commented upon the testimony of officers ot The more serious question relates to the etrect of the plan upon tbe selling agency to the effect " that the organization would not competition between defendants and other producers. As already be able to fix prtces in an arbitrary way, but by the elimination of noted, the district court found that •• the great bulk " of the coal certain abuses and by better advertising and sale organization the produced in Appalachian territory is sold "in the highly com­ producers would get more in the aggregate for their coal ". " Other petitive region east of the Mississippi River and north of the witnesses for the defendants," said the court, •• indicated that there Ohio River under an adverse freight rate." Elaborate statistics would be some tendency to raise the price, but tb.at the degree of were introduced with respect to the production and distribution increase would be affected by other competitors in the coal industry of bituminous coal and the transportation rates from the differ­ and by producers of coal substitutes." ent producing sect1ons to the consuming markets, as bearing upon Fifth. We think that the ev1dence requires the following con­ defendants• competitive position, together with evidence as to the clusions: requirements of various sections and consumers and the relative (1) With respect to defendant's purposes, we find no warrant advantages possessed by reason of the d11ferent qualities and uses for determining that they were other than those they declared. of the coals produced. It would be impossible to make even a Good intentions will not save a plan otherwise objectionable, but condensed statement of this evidence (which has been carefully knowledge of actual intent is an aid in the interpretation of facts analyzed by both parties) but an examination of it fails to dis­ and prediction of consequences (Chicago Board of Trade v. close an adequate basis for the conclusion that the operation of United States, supra). The evidence leaves no doubt of the exist­ the defendants' plan would produce an injurious effect upon com­ ence of the evtls at which defendants' plan was aimed. The indus­ petitive conditions, in v1ew of the vast volume of coal avallable, try was in distress. It suffered from overexpansion and from a the conditions of production, and the network of transportation serious relative decline through the growing use of substitute facll1ties at immediate command. Whtle strikes and interruptions fuels. It was affi.icted by injurious practices within itself-prac­ of transportation may create temporary and abnormal dislocations, tices which demanded correction. If evil conditions could not be the bituminous coal industry under normal conditions afiords entirely cured. they at least might be allev1ated. The unfortunate most exceptional competitive opportunities. Figures as to de­ state of the industry would not justify any attempt unduly to veloped and potential productive capactty are impressive. The restrain competition or to monopolize, but the existing situation court below found upon this point that the capacity of the mines prompted defendants to make, and the statute did not preclude in the Appalachian region operated by others than defendants is them from making, an honest effort to remove abuses, to make 82,660,760 tons, as against the capacity of defendants• mines of competition fairer, and thus to promote the eccential interests of 86,628,880 tons. While the present yearly capacity of all mines in commerce. The interests of producers and consumers are inter­ southern West Virginia, Virginia, eastern Kentucky and Tennessee linked. When industry is grievously hurt, when producing con­ 1s 245,233,560 tons, based upon an 8-hour working day. •• This ex­ cerns fail, when unemployment mounts and communities depend­ cess capacity over actual production ., the court said, " Could be ent upon profitable production are prostrated. the wells of com­ brought into production at moderate expense and with reasonable merce go dry. So far as actual purposes are concerned, the conclu­ promptness." As to potential, undeveloped capacity in Appa­ sion of the court below was amply supported that defendants were lachian territory the court found that in the eight districts in this engaged in a fair and open endeavor to ald the industry in a region not held by any operating, or by any cap.tive, company, measurable recovery from its plight. The inquiry then must be there are approximately 760,000 acres containing more than 4,- 300.000,000 tons of recoverable coal. In addition, in the same makes it. And he makes it because of the tremendous force and territory " owned by captive companies and not being operated influence of his buying power. Why, it is nothing these days for or owned by operating companies who are using only a very one interest or one concern to buy several million tons of coal." small proportion of their holdings", there is an additional 860,000 8 The district court, in its findings, after referring to the rail­ acres, containing more than 4,600,000,000 tons of coal. Within roads above mentioned, continues: .. A representative of a large the 24 counties in which defendants' mines are located, and 1m­ public-ut111ty company" (with extens1ve power lines in the Middle mediately adjacent to them, on ratlroads already operating, "with West and on the Atlantic seaboard) .. consuming annually approxi­ the exception of short, feeder extensions," there are over 1,620,000 mately 2,485,000 tons of coal has stated that the organization and acres of coal-beartng land, containing approximately 9,000,000,000 operation of Appalachian Coals, Inc., wm not affect competition net tons of recoverable coal " comparable both in quality and in the markets in which his company buys coal, and that it will mining conditions with the coal now being mined in that regton ". have a beneficial effect on the coal Industry. A representative of "The opening up of this acreage would involve only the exten­ a power company operating throughout the State of Geor­ sion of short branch lines from the railroads and the building of gia • • • using from 30,000 to 125,000 tons of coal annually, mining plants. The price of these lands at the present time has stated that the organization and operation of Appalachian would be less than half of the value of two or three years ago, Coals, Inc., wtll not restratn competition in the markets in which and considerably less on a royalty basts. Coal produced from bts company buys coal. A representative of the Carbide & Carbon these districts ls a vall able for any market In which Appalachian Corporation, which uses annually about 250,000 tons of bitumi­ coal is sold. Conditions in the coal industry are such that new nous coal, 100,000 tons of coke made from bituminous coal, and companies are free to enter the business of producing and market­ 40,000 to 50,000 tons of petroleum coke, and operating plants that ing coal in competition with existing companies". In connection consume coal at South Charleston, W.Va.; Niagara Falls, N.Y.; with this proof of developed and potential capacity, the .. highly Cleveland, Ohio; Sault Ste. Marie, Mich.; Indianapolis, Ind.; and organized and concentrated buying power" that can be exerted Fremont and Fostorta, Ohio; has stated that the organization of must also have appropriate consideration.' Appalachian Coals, Inc., will have a benefic1al effect in the coal industry and will not restrain competition in the markets in which r J. M. Dewberry, general coal and coke agent of the Louisville his company buys coal. The largest purchaser of coal in the & Nashville Railroad, a large consumer of Appalachian coal, testi­ States of North Carolina. South Carolina, Georgia, and eastern fied: " It 1s a well known fact today that the buying power of Tennessee, who purchases approximately 600,000 tons of coal an­ these large consumers of coal is more intelligent, more forceful, nually under normal conditions for use by textile mills located in more far-reaching than ever before 1n the history of the industry. those States, has stated that the organization and operation of And it just sounds to me like a joke for somebody to talk about Appalachian Coals, Inc., w111 not control or dominate the price in Appalachian coals or somebody else dictating the price that they the markets in which he purchases coal, and that he wlll be able are going to pay. They dictate their own price. The pUrchaser to purchase coal in an open and competitive market." .942 CONGRESSIONAL RECORD-SENATE MARCH 29 whether, desptte thfs objective, the inherent nature of their plan must go elsewhere to dispose of their products, and the extent of was such as to create an undue restraint upon interstate commerce. their production is to be considered in the light of the market (2) · The question thus presented chiefly concerns the effect upon conditions already described. Even in Appalachian territory it prices. The evidence as to the conditions of the production and appears 't;hat the developed and potential capacity of ot h er pro­ distribution of bituminous coal, the available ·facilities for its ducers will afford effective competition.' Defendants insist that transportation. the extent of developed mining capacity, and the on the evidence adduced as to their competitive position in the vast potential undeveloped capacity m akes 1t impossible to con­ consuming markets, and in the absence of proof of actual opera­ clude that defendants thro1,1gh the operation of their plan will be tions sl?owing an injurious effect upon competition, either through able to fix the price of coal in the consuming markets. The ulti­ possession or abuse of power, no valid objection could have been mate finding of the district court is that the defendants "will interposed under the Sherman Act if the defendants had eliminated not have monopoly control of any market nor the power to fix competition between themselves by a complete int egration of their monopoly prices "; and in its opinion the court stated that " the mining properties in a single ownership. (United States v. selling agency will not be able, we think, to fix the market price of United States Steel Corporation, 251 U.S. 417; Uni ted Stat es v. coal". Defendants' coal will continue to be subject to active com­ International Harvester Co., 274 U.S. 693.) We agree that there petition. In addition to the coal actually produced and seeking is no ground for holding defendants' plan illegal merely because markets in competition with defendants' coal, enormous additional they have not integrated their properties and have chosen to quantities will be within reach and can readily be turned into the maintain their independent plants, seeking not to limit but channels of trade if an advance of price invites that course. While rather. to facilitate production. We know of no public policy, and conditions are more favorable to the position of defendants' group none IS suggested by the terms of the Sherman Act, that in order in some markets than in others, we think that the proof clearly to co~ply with the la~ those engaged in industry should be driven shows that wherever their selling agency operates it will find itself to unify their properties and businesses in order to cortect abuses confronted by effective competition backed by virtually inexhaust­ which may be corrected by less drastic measures. Public policy ible sources of supply, and will also be compelled to cope with the might indeed be deemed to point in a d11ferent direction. II the organized buying power of large consumers. The plan cannot be mere size of a single, embracing entity is not enough to bring a said either to contemplate or to involve the fixing of market prices. combination in corporate form within the statutory inhibition, the The contention is, and the court below found, that while de­ mere number and extent of the production of those engaged in fendants could not fix market prices, the concerted action would a cooperative endeavor to remedy evils which may exist in an " atrect " them; that is, that it would have a tendency to stabilize industry, and to improve competitive conditions, should not be market prices and to raise them to a higher level than would regarded as producing illegality. The argument that integration otherwise obtain. But the facts found do not establish, and the may be considered a normal expansion of business, while a com~ evnience fails to show, that any effect will be produced which in bination of independent producers in a common selling agency the circumstances of this industry will be detrimental to fair com­ should be treated as abnormal-that one is a legitimate enterprise petition. A cooperative enterprise, otherwise free from objection. and the other is not--makes but an artificial distinction. The which carries with it no monopolistic menace, is not to be con­ Antitrust Act aims at substance. Nothing in theory or experience demned as an undue restraint merely because it may effect a indicates that the selection of a common selling agency to repre­ change in market conditions, where the change would be in miti­ sent a number of producers should be deemed to be more abnor­ gation of recognized evils and would not impair, but rather foster, mal than the formation of a huge corporation bringing various fair competitive opportunities. Voluntary action to rescue and indeper;tdent units into one ownership. Either may be prompted preserve these opportunities, and thus to aid in relieving a de­ by busmess exigencies and the statute gives to neither a special pressed industry and in reviving commerce by placing competition privilege. The question in either case is whether there is an un­ upon a sounder basis, may be more efficacious than an attempt to reason_a.ble restraint of trade or an attempt to monopolize. II provide remedies through legal processes. The fact that the cor­ there IS, the combination cannot escape because it has chosen cor­ rection of abuses may tend to stab1Uze a business or to produce porate form, and, 1f there is not, it 1s not to be condemned be­ fairer price levels does not mean that the abuses should go uncor­ cause of the absence of corporate integration. As we stated at rected or that cooperative endeavor to correct them necessarily the outset, the question under the act is not simply whether the constitutes an unreasonable restraint of trade. The intelligent parties have restrained competition between themselves but as to conduct of commerce through the acquisition of full information the nature and effect of that restraint. (Chicago Board of Trade of all relevant facts may properly be sought by the cooperation of v. United States, supra; United States v. Terminal Association those engaged in trade, although stabilization of trade and more 224 U.S. 383; Window Glass Manufacturers v. United States supra: reasonable prices may be the result (Maple Flooring Association Standard Oil Co. v. United. States, 283 U.S. 163, 169, 179.) ' ' v. United States, supra; Cement Manufacturers Association v. The fact that the suit is brought under the Sherman Act does United States, 268 u.S: 588, 604). Putting an end to injurious not change the principles which govern the granting of equitable practices and the consequent improvement of the competitive relief. · There must be "a definite factual showing of illegality." position of a group of producers is not a less worthy aim and may (Standard Oil Co. v. United States, 283 U.S. p. 179.) We think b~ entirely consonant With the public interest where the group that the Government has failed to show adequate grounds for an must still meet effective competition in a fair market and neither injunction in this case. We recognize, however, that the case has seeks nor is able to effect a domination of prices. been ~ried in advance of the operation of defendants' plan, and Decisions cited in support of a contrary view were addressed to that It has been necessary to test that plan with reference to very different circumstances from those presented here. They purposes and anticipated consequences without the advantage of dealt with combinations which, on the particular facts, were the demonstrations of experience. If in actual operation it should found to impose unreasonable restraints through the suppression prove to be an undue restraint upon interstate commerce, 1f it of competition. and in actual operation had that effect. A meri­ should appear that the plan is used to the impairment of fair can Column & Lumber Co. v. United States (257 U.S. 377); United competitive opportunities, the decision upon the present record States v. American Linseed. Oil Co. (262 U.S. 371). Compare should not preclude the Government from seeking the remedy Maple Flooring Association v. United. States, supra, at pages 579- which would be suited to such a state of facts. We think also 582. In Addyston Pipe & Steel Co. v. United. States (175 U.S. 211) that in the event of future controversy arising from the actual the combination was effected by those who were in a position to operation of the plan the results of the labor of both parties in deprive, and who sought to deprive, the publlc in a large territory this litigation in presenting the voluminous evidence as to the of the advantages of fair competition and was for the actual pur­ industry, market conditions, and transportation facilities and pose and had the result of e~ncing prices, which, in fact, had rates should continue to be available without the necessity of been unreasonably increased. (Id., pp. 237, 238.) In United reproducing that evidence. States v. Trenton Potteries Co. (273 U.S. 392), defendants, who The decree will be reversed and the cause will be remanded to controlled 82 per cent of the business of manufacturing and dis­ the district court with instructions to enter a decree dismissing tributing vitreous pottery in the United States, had combined to the bill of complaint without prejudice and with the provision fix prices. It was found that they had the power to do this and that the court shall retain jurisdiction of the cause and may set had exerted it. The defense that the prices were reasonable was aside the decree and take further proceedings if fUture develop­ overruled, as the court held that the power to fix prices involved ments justify that course in the appropriate enforcement of the " power to control the market and to fix arbitrary and unreason­ Antitrust Act. able prices", and that in such a case the difference between legal It is so ordered. and illegal conduct could not " depend upon so uncertain a test " Mr. Justice McReynolds thinks that the court below reached the as whether the prices actually fixed were reasonable, a determina­ proper conclusion and that its decree should be afiirmed. tion which could " be satisfactorily made only after a complete Mr. KING. Mr. President, I cannot quite share the views survey of our economic organization and a choice between rival expressed by the able Senator from Colorado much as I philosophies." (See United states v. Cohen Grocery Co., 255 U.s. 1.) In the instant case there is, as we have seen, no intent or should like to accept the views whieh he has expounded. power to fix prices, abundant competitive opportunities will exist There is no doubt the Supreme Court of the United States 1n all markets where defendants• coa.l is sold, and nothing has has in various decisions almost whittled away the spirit if been shown to warrant the conclusion that defendants' plan will have an injurious effect upon competition in these markets. not the letter o! th~ Clayton Act and the Sherman anti­ (3) The question remains whether, despite the foregoing con­ trust law. I shall not take time, of course, on this occasion clusions, the fact that the defendants• plan eliminates competi­ to analyze the decision. I can only say that I am very glad tion between themselves is alone sufficient to condemn it. Em­ that the SUpreme Court has retained jurisdiction of the case phasis is placed upon defendants' control of about 73 percent of the commercial production in Appalachian territory. But only a because I fancy that within a short time applications may small percentage of that production is sold in that territory. The be made to the Supreme Cotu't to take cognizance of the case :finding of the court below is that " these coals are mined in a region where there is very little consumption." Defendants 8 Supra pp. 10, U. 1933 CONGRESSIONAL RECORD-SENATE 943 again upon the ground that a monopoly has been entered RESOLUTION OF ROCKBRIDGE POST, NO. 95, AMERICAN LEGION into or is in process of being developed. Mr. BYRD present~;;d a resolution adopted by Rockbridge Mr. President, there is no doubt that monopolies today Post, No. 95, American Legion, of Lexington, Va., which was are invading our domestic life and our industrial life to the ordered to lie on the table and to be printed in the RECORD, disadvantage of the people. I want to say now, as I have as follows: said upon former occasions, that if monopoly shall control LEXINGTON, VA., March 23, 1933. the industries of the United States we are simply advancing To the CLERK oF THE UNITED STATES SENATE, toward a national socialism, because the people of the . Washington, D.C.: At meeting helq at the home of Comrade Dr. Alfred G. Hutton United States will prefer to have the Government of the the following resolution was adopted: United States control, if it does not own and operate, the " Resolved, That Rockbridge Post, No. 95, of the American Legion large industries of the country rather tha!l. to have those in­ and the members thereof do hereby express their confidence in the dustries form monopolies and subject the people to unrea­ wisdom and patriotism of our President, Franklin D. Roosevelt. and the Senate and House of Representatives in the laws passed sonable prices and monopolistic restraint. for economy and recovery of the Nation and the people, and we I may say that there is a resolution now before the Com­ pledge anew our allegiance and our united e:fforts in loyalty to mittee on the Judiciary calling for an investigation of the render every assistance in hastening this recovery; and we declare our opposition to any communistic movement. on the part of radi­ operation of the Sherman law and of the Clayton Act, with cal organizatiorus or groups in their etiorts to weaken or tear down a view to determining wheth~r those acts should be our Government and civilization. strengthened or whether there should be some modification "2. That copies of this resolution be sent to the President, the of the existing antitrust laws. I hope that the Judiciary Senaie, the House, and the press." GREENLEE D. LETCHER, Commander, Committee-and I am a member of that committee-will CHARLES W. R. DUNLAP, Adjutant, take cognizance of the resolution now before it and make Rockbridge Post, No. 95. searching investigation of the operation of those laws and . MANUFACTURE AND SALE OF BEER of the growth of monopoly and the effect of monopolistic control upon the industries of our country. Mr. DUFFY presentee resolutions adopted by the Common Council of the City of Milwaukee, Wis., which were ordered PETITIONS AND LETTERS to lie on the table and to be printed in the RECORD, as Mr. CAPPER presented a petition of sundry citizens of follows: Herington, Kans., praying for the passage of the so-called Whereas the Congress of the United States is about to pass an Frazier bill, to liquidate and refinance agricultural indebted­ amendment to the present law which will permit the manufac­ ness at a reduced rate of interest by establishing an efficient ture and sale of beer of 3.2 percent alcoholic content, which unquestionably will receive the unqualified approval of the Presi~ credit system, which was referred to the Committee on Agri­ dent; and culture and Forestry. Whereas this action, achieved through the energetic efforts of Mr. ROBINSON of Arkansas presented a letter from C. J. President Roosevelt, will stimulate and revive trade and aid mate­ Shaw, of Little Rock, Ark., submitting a plan for agricultural rially in relieving the economic burden now prevailing through· out the land; and relief, which was referred to the Committee on Agriculture Whereas the benefits Milwaukee wtll derive from the passage of and Forestry. this amendment are incalculable, t:P..ousands of operatives in the He also presented a letter from Eli H. Brown. Jr., Esq., of brewing industries and all1ed tradeii will resume work, the value of taxable property will increase, thousands of dollars will pour Louisville, Ky., in relation to financial and banking prob­ i:ato the city treasury, and property and home owners will obtain lems, which was referred to the Committee on Banking and substantial relief from the burden of taxes they are now carrying: Currency. Therefure be it He also presented a letter from John B. Sullivan, Jr., Esq., Resolved by the Common Council of the City of Milwaukee, That it hereby extends to President Roosevelt its appreciation of of Boston, Mass., in relation to deduction of loss from income his energetic efforts in securing the enactment of the amendment. tax suffered on the sale of securities or other property held permitting the manufacture and sale of beer of 3.2 percent alco­ for more than two years, which was referred to the Com­ holic content and commends the Senate and House of Representa­ tives in their prompt compliance with the desires of our Chief mittee on Finance. Executive of the Nation; RELIEF OF UNEMPLOYMENT-LETTER FROM THE AMERICAN FOR­ Resolved further, That a duly certified copy of this resolution ESTRY ASSOCIATION be sent to President Roosevelt and to the clerks of the United States Senate and House of Representatives. Mr. WALSH. Mr. President, I ask unanimous consent to have printed in the REcORD and to lie on the table a letter OFFICE OF THE CITY CLERK, Milwaukee, March 24, 1933. from the American Forestry Association giving its unquali­ I hereby certify that the foregoing is a copy of a resolution fied approval to Senate bill 598. adopted by the Common Council of the City of Milwaukee on There being no objection, the letter was ordered to lie on March 20, 1933. the table and to be printed in the RECORD, as follows: FRANK A. KRAWCZAK, City Clerk. THE AMERICAN FORESTRY AsSOCIATION, ISSUANCE OF CURRENCY Washington, D.C., March 28, 1933. Hon. DAVID I. WALSH, Mr. LA FOLLETTE presented resolutions adopted by the Chairman Senate Committee on Education and Labor, Common Council of the City of Milwaukee, Wis., which were Senate Office Building, Washington, D.C. referred to the Committee on Banking and Currency and MY DEAR SENATOR WALSH: The satisfactory progress on S. 598 ordered to be printed in the RECORD, as follows: 1s causing tremendGus interest and enthusiasm among members of the American Forestry Association in all parts of the Nation. Resolution advocating the issue of national currency to munici­ The program set forth in this bill presages an era of national palities on the pledge of their bonds leadership in conservation such as the American Forestry Asso­ Whereas national currency is issued to banks because of their ciation has long been working for. We rejoice over the indica­ special privilege on the pledge largely of municipal interest-bear­ tions that the bill will pass within the next few days. ing bonds purchased by such banks; and Because of the interest of our many members, I am writing to Whereas the overwhelming interest burden of American munici­ ask your cooperation in securing the pen which President Roose­ palities 1s thus sutiered !or the benefit of specially privileged velt wtll use in signing this bill. We would plan to have it framed banking interests; and and kept among the permanent records of this association. Whereas the same security would exist for such currency 1! We trust also that photographers will be permitted to record municipalities were themselves to deposit their bonds and receive this historic event and that copies of the photographs will be the money loaned thereon for their public improvements directly available so that we may publish one in an early issue of American from the Government of the United States of America; and Forests. Whereas the interest on the municipally owned bonds so pledged I! possible, one or more representatives of the association would would revert to the borrowing municipality: Now, therefore, be it greatly appreciate the opportunity to be present when the bill is Resolved, That it is a folly and a waste to burden the public signed. works of the people with the unnecessary debt of interest for the With appreciation for the splendid leadership which you have benefit of the privileged manipulators of the people's currency; taken in regard to this bill, I am, and be it further Very sincerely yours, Resolved, That the constitutional power of Congress to coin OVID BUTLER, money should be exercised directly for the benefit of the people in Executive SecretaT1J. their public works; that sUitable legislation should be enacted 944 .CONGRESSIONAL RECORD-SENATE MARCH 29 establishing a standard of integrity and sound economy of munici­ A bill (S. 871) for the relief of Josephene M. Scott; to the pal bond issues and giving to municipalities which meet such standard the same rights enjoyed by national banks to receive Committee on Claims. national currency on the pledge of their bonds; and be it further By Mr. McNARY: Resolved, That the clerk transmit duly certified copies of this A bill (S. 872) to facilitate the use and occupancy of - resolution to the Senate and the House of Representat ives of the United States of America as a memorial to Congress from the city national-forest lands for purposes of residence, recreation, of Milwaukee; and be it further education, industry, and commerce; to the Committee on Resolved, That other American municipalities be and they hereby Agriculture and Forestry. are invited to join in thts appeal to Congress. A bill (S. 873) granting compensation to George Walthers; OFFICE OF THE CITY CLERK, to the Committee on Claims. M i lwaukee, March 24, 1933. By Mr. CAREY: I hereby certify that the foregoing is a copy of a resolution adopted by the Common Council of the City of Milwaukee, on A bill (S. 874) to prevent .deceit and unfair prices that March 20, 1933. result from the unrevealed presence of substitutes for virgin FRANK A. ;K.RA WCZAK, wool in woven or knitted fabrics purporting to contain wool Ci ty Clerk. and in garments or articles of apparel made therefrom, REPORTS OF THE PUBLIC LANDS AND SURVEYS COMMITTEE manufactured in any Territory of the United States or the Mr. CAREY, from the Committee on Public Lands and District of Columbia, or transported or intended to be trans­ Surveys, to which was referred the bill (S. 604) amending ported in interstate or foreign commerce, and providing section 1 of the act entitled "An act to provide for stock­ penalties for the violation of the provisions of this act, and raising homesteads, and for other purposes ", approved for other purposes; to the Committee on Agriculture and December 29, 1916 (ch. 9, par. 1, 39 Stat. 862), and as Forestry. amended February 28, 1931 (ch. 328, 46 Stat. 1454), reported By Mr. ROBINSON of Arkansas: it without amendment and submitted a report (No. 9) A bill (S. 876) to extend the time for filing claims under thereon. the Settlement of War Claims Act of 1928, and for other He also, from the same committee, to which was referred purposes; to the Committee on Finance. the bill New Hampshire; Mr. CAPPER. Mr. President, I ask unanimous consent George M. Graves, of Vermont; and that the Committee on Interstate Commerce may be dis­ Robert Lacy Smyth, of California. charged from the further consideration of the bill (S. 497) CONSULS GENERAL to define the intent of the antitrust laws as to certain Harold B. Quartan, of Iowa; and agreements, sometimes known as the "fair trade bill", and Ernest L. Ives, of Virginia. that it may be referred to the Committee on the Judiciary. The VICE PRESIDENT. The nominations will be placed Since the bill was introduced, it has developed that in on the Executive Calendar. its present form it properly belongs to the Judiciary Com­ BILLS INTRODUCED mittee. I have consulted with the Senator from Washing­ ton [Mr. DILL], the Chairman of the Committee on Inter­ Bills were introduced, read the first time, and, by unani­ state Commerce, and he is entirely agreeable to the change mous consent, the second ti..'!le, and referred as follows: of reference. · By Mr. KING: The VICE PRESIDENT. Without objection, the Commit­ A bill