4192 CONGRESSIONAL RECO~:EN.ATE:__ _ J~ 25,_

Also, petition of members of. Ghrist Chur~ Malill~~ Onon­ House debate 11p0n it: in.to strict profiibition measm·, without daga County, . Y .. fu..voring oo-tlonal IJI'OOiblti'On;: to- Com- counting th~ €ast a,t all', is going: tOO> :far. It.is utterLy unreason· mittee on the- Judiciary. _ able-. The pending revenue b.m is already tm.·- enough without Also, petition of Ira: C. Estes and other· citizens ! the eity the addition of another huge sum to make up for the elimination of Syracuse, N. Y~~ favoring national prohibition~ to the-eom­ of $350,000,000 of pre ent taxes. The effect of the liquor amend­ mi ttee on the- Judiciary; ment is to change the €haraeter of the-food bill to make its main By 1\lr. MOTT: Petitions of residents of West Eaton, of provisiillls pi·act.ica.lly subordinate to- the :prohlbitiea of the manu­ Harrisville, and of Denm~k. N. Y.,. f.a~oYing pro,lill>iti.en as · a facture of liquors . war measure · to the Committee on the Judieiary ~ uAll this distraction Ctlf legislative energy from the main busi­ By Mr. NOLAN: Petition of County Clare 'Association of ness of the hour, thi'3 cOlltinuous. attempt to- make a. Subsidiary California, San Franeisco, CaL, urging that hearing held on question principal, seriously interferes with war measures. the so-called. Mason r olution, House- joint resE>"Iution No. 88, Sen.atar WADSWORTH has proposed an amendment to the food· calling on Great Britain to grant Ireland her freedom; tOI th-e control bill which- give ·the President powe1~ to prohibit- the use Oommi ttee on Foreign Affairs. of food materials in the manufacture of d' tUled liquor , beers. By Mr. TREADWAY . Petition of th~ m11nufactnrers and busi­ and: ales~ That is the proper method. It was employed by the ness men of .olyoke, Mass. ; the manufaeturers of Holyoke, House in the provision authorizing the President to commanaeer Mass.~ and sundry citizens of Granville, 1\lass•• urging the pro­ existing fltocks of alcoholic liquors if alcohol is. needed in the hibition of the manufacture and sale of intoxicating liquors as manufacture of explosives. He may be trusted to use that au­ war measure; to the Conmiittee- on the Judiciary. thority with diseretiO"n. Instead of· making an iron rule, founded on a disputed t~ry, give the President the power to act as nece tty requires. That is onnd ecooomics. Th-e other course SENATE. is nrenmture, and theFefore without justification. Whenever, in the interests of economy, effi.ciency, and grain preservation~ na- ' MoNDAY); June £57 1917. tional prohibition is necessary, the President should have the '(Leoislrifi".,;e day()/ lfriaav~ June 22, 1911.) power to prescribe it as a war measure, and for no other reason. The plain duty of. the Senate is to eliminate the prohibitive The Senate· reassembled at 12· o'clock m., on the exp1rati"on of amendment and substitute for it one based ·on an intelligent con­ the recess. sideration of the situation!' · CONSERVATIO OF FOOD AND F"UEL. Mr. LEWIS. Mr. President, may ten

CONGRESSIONAL RECORD·-SENATE. 4193

ask to have this letter rend because section 3 of the pen~g bill The VICE' PRESIDENT. Without objection, it is so ord ered~ subjects th~r pledging and finan'Cing of all farm p1·oducts to gov­ The rna tter refeiTed to is as follows : ernmental control and this.Ietter has direct reference to. the un­ [Telegram.] wisdom of such a policy. FORT WORTH, TEx., JU?le 21, 1911. Mr. GALLINGER. Does the Senator desire to have. the rSenator THOMAs ·P. GonE, letter read1 Washington, D. 0.: Mr. GORE. I should like to ha-verthis letter and one or twcr ' All the farmers; nearly to a man, throughout this country look upon others read, and I have asked to have printed other letters . the food.-co:ntrol proposals a.s infmical to their. interest ~d directed to · th R . • . . . i theil- inJury, in ~vidence of which. they witness the retirement_ of ele­ m e ECORDj for I think the Senate should be m possess on vatol"l and mill men frolill :purchases of wheat just as the thrashers are·. o1:i the- information given by the letters. getting well under w-ay, and note that· actual, thrashed wheat, o.f whiCh: Mr. GALLINGER. I aO'ree with the Senator that the letter. : w~ ha~e the new. cr()p supply in Texas and Oklahoma that is to be o : found m the world, bas declined in two weeks from .over three to less.. ought t 0 b e rea-d • : than. two dollars per. busheL At the same time· there. wa:s· published in· There being no objection,· the Secretary read as follows . I the papers- a statement purporting. to originate with: expectant pur · PARIS, :x- Jtme..1.9 r; , chasers at. Fort "WOcr-th, whose 11 elevators are- empty, that Mr. Hoover ·· , 19 · had advised them against stocking up for the present. Consequently Hon. C. A. CULBERSON, United States Senator, it was stated that wheat would open at about $2. for the new whent., .and Hon. •.rnoM.As P. GonE, United States Senator, now can't sell it at that, beeause we c~t get cars, and each morn· Hon. MonRIS SHEPPARD, United States Senator, ing's market report records a loss, W.est of the one hundredth meriill.an Bon. HoKE Sl\IITH, United States Senator, prevails a . d.I:ought, the character. oL which has never been equaled Ron. JosEPH E. RANSDELL, United States Senator, within the· memoxy of man. Instead of cattle shipments it is hid! ; Washi-ngton, D. a. The people, of course, are agreeable to that control which may be GENTLEMEN : While I fully appreciate the enormous burden which r found necessary, bur not to their- own destruction. you are now working under, at the same time I suggest that you com- S. H. CoWAN. municate with Mr. W:P. G. Barding, president Federal Reserv~ Bank Board, and Mr. J. S. Williams, Comptroller of Currency, and ascertain • . PETERS:BURG, IND., June !0, 1917. from them

4194 .OONGRES8-IONAL -RECORD-SENA1]E . .

ence one of the worst times it bas ever seen so far. So please try fat hogs sold for-less than $3 per hundredweight, wheat 60 cents per and work against it in all your powe1· to save our country. bushel, · corn 12l; cents, oats 10 cents hundreds, yes, thousands · ot Yours, sincerely, · farmer boys left the iarms for a soft job in towns and clUes, got smart :iNSYLVANIA FARMEB. and called the honest farmer "Old hayseed," ·" Clodhopper," etc., and now these same people are clamoring for Congress to control the price STANTON, MICH., June 21, 1917. of the product of the farm •. The farmer has always had to stand Senator GonE. droughts, hailstorms, and the eJements ' over which he had no control, Washington. D. 0. and stand or fall on the inevitable law of supply and demand. When · MY DEAR Srn: I appreciate your stand for the farmer on the food crops were short e>r prices· low the· farmer has· not rlished to Congress question. I can not uncerstnnd why the farmer has got to be the goat. . for help. No; ~ he mortgaged real and personal property at a high If Air. Hoover is going to put wheat down to $1.25 we· might just as rate of interest; and now, when the wheat crop is almost a failure well quit Taising it: The farmers of Montcalm County, at $1.50 a bushel and outlook for corn crop looks very uncertain. why should Congress this year, won't break even on their crop, and we might as well let be so unjust .to the farmer as to pass a law that he is cut otr from our lar•ds lie as to hire high-price labor. machinery, horses, etc., to put the world's open market? Does the President want Congress to pass in with. Let Mr. Hoover look at it !-rom the farmer's side and not this bill and bring another Coxy's army to Washington? You know, make a grand-stand play from the Chicago wheat pit. If it was wrong my dear Senator, that such an army can be raised without a conscript to buy option on wheat, why did he not prosecute them? And it must act of Congress. · · · · have been wrong or else they would not have been put to a stop. The{'( There may be food gamblers, middleman's profts, and all that. but gave the gambler a chance to get from under, but how about the smau the plain fact is that the Liverpool market has always governed the elevators all bver th~ country that pay the farmer $3.25 for wheat · world's markets, and now when that market is in distress England and have to take $2.30 for it to-day? Did they get a chance? ! . have sends Lord Northclltl'e to help dictate with Iloover and others how in mind one elevator that lost $5,000 on wheat. He bought at those Congress shall control the resources of the United States. Public figures, and there are 1,000 similar circumstances. I am · a farmer sentiment is fast forming that there is executive and legislative and have always bet>n a farmer, but four years I was sheriff. and I branches in our form of ·government. and the people do not want any ~ put in from 12 to 15 hours a day myself and am paying $60 a month dictator over their Repre entatives in Congress. Sentiment ls not in to my farm hands m order to raise a big crop. And I be picked if favor of Prus~ia . nism nor Germany's methods of control of national 1t does not make a man feel like quitting when such a man as Hoover resources. goes to pulling down an honest living profit. I believe Mr. Hoover Respectfully, W. H. LESHER. should look at it from tile farmer's side for once. I am going to get ...... out a petition signed by our fanners protesting against reducing the price on our product as long as we are· up against the high wages, etc. VERDE~, OKLA., June !1, 1911. I am as good . loyal citizen as the United States has got, and we Hon. T . .p, GORE. Danes have as little love for Germany as anybody.· We had two wars DEAR Sm: Will WTite you a few lines as I see some ol the papers with ht>r ourselves. are criticizing you, but it is just the papus, we farmers are with yon , Thanking you. tor yorn· time, I remain, almost to a man. Fight this food-control bill to a finish. You arc Yours, truly, w. E. RASMUSSEN. right, and don't give in to President Wilson or anyone else. It looks to me as if President Wilson could have his way Congress had better OKLAHOMA CITY, OKLA., June tS, 1917. appoint him dictator and adjourn. It is something awful for one man Hon. THOMAS P. Gon-E, to have and want the power that Congress is bestowing Gn our Presi­ Washington, D. 0. dent. 'rhere are men that were against you that arj'! for you now. . DEAR Sin: I note the stand you are taking on the food-control bill Respectfully, and wish to say that in my oplnion you are absolutely right. The past T. F. GRAHAM. season I handled 3,000,060 bushels of Oklahoma's wheat crop and I believe I know something about the condition. If Mr. Hoover's program goes through the Armour Grain Co. and DUR.ANT, OKLA., Jtme 21, 1917. several other large concerns will have the same grip on the grain trade Senator T. P. GonE, that they have on the packing industry, and that Standard Oil has on Washington, D. 0. the oil trade. · Small e.>."Porters like myself were fighting for our lives Mr DmAR SENATOR: The grain dealers of both Oklahoma and Texas when the war came on, as these people were trying then to eliminate are taking considerable interest in the bill now proposed regarding food us from the grain business, and were paying a price for grain in the control. . · country that compelled us to do business for nothing. I have closed I have not seen the text of the bUI, but,_ judging from the informa­ my office; my office force are now -- employed otherwise, as I could not tion I can gather from the speeches made regarding the measure, I alford to try to rarry on a business in the face of present conditions. am of the opinion that it will have a tenrlency to do away with the I have three farms and l am writing this letter from the farmer's grain buyers lik+> myself, or middlemen, as they call them. standpoint. I feej that we would all be willing to do our fair share We note with pleasure that you are opposed to this bill and are towards winning the war, but I do not see why we should accept an writiJ:lg you directly to give you our own ideas regarding it, lind also unfair portion of the burden. for information as to this bill. As no one knows what the maximum For instance, we have to buy a new thrashing macblne and engine, price would be, a.13 we understand it, it will be in the power of one and have to pay the Increased cost of steel and labor in that pm·chase. man~ither the President or Mr. Hoover-to name that price. I can Why, then, should our product h!lve to be sold at a fixed pr~ce that not understand how one man, not posted in dealing in grain, could suits the ideas· of a d.ictator who Is not familiar with the farmrng con­ name a price that would be satisfactory to the farmers and grain deal­ dition 'i The remedy for tb~ situation is in increased wages for labor ers and the public generally, for if he should name a maximum price where it is necessary and in that way spread the burden equally on all that farmers would not be willing to accept we do not think he could shoulders. A numbe:..· of people that I have argued with stated that it force farmers to take this. price, and the producers could therefore hold is alright, I can get along, but what about the poor laboring man their grain, trusting to get a better deal probably later on. If, there. working for $2 a day. I am paying $2.50 per day for cotton choppers fore, the receipts were curtailed by reason of the producers holding for oil the farm, and have paid $6 for a man and his team. better prices, the object of the bill could not be accomplli!hed ; and, on · In addition to this, consideration should be given to the 12,000,000 the other hand, if after giVing the law a trial it was found the prices acres that the farmers cultivated and seeded with high-prlced seeds were too low and he decided to change them to a higher maximum, that was a failure. When the farmer did not get the cost of production that would probably destroy the merit of the bill, for if he makes a out of his product nothing wn.s heard of any legislation to give him a flexible price he would be doing no more than what the future minimum price that would render him a fn.i.l' return for his investment gamblers are doing in Chicago. and labor. I felt that when Mr. Hoover was suggested as tood con­ In the meantime there are millions of dollars invested in the grnln troller that if anyone knew anything about the con·dition, be dld, but belt in elevators and buildings erected for the purpose of handling if he bas been quoted correctly in the public press he ha.s been very grain by the grain dealers of the country, and if the prices were made u.nfair in-nis statements. No one is better qualified than Mr. Hoover so as to apply directly to the producer we do not see wherein the grain to say what the · average nrice the illlies and Belgium relief paid for dealers would be of any use or benefit, but has the effect in its operation their suppiles, but I have never heard any statement from Mr. Hoover to place the elevator men and grain dealers out of business. as what this price was. However, he says that the farmers received If the maximum price is to be made applicable to grain dealers and $1.~2 for their wheat, and the same wheat was selling in New York not the producer, of course that price would be a matter of public in­ that day for $3.18. Any well-posted person knows that the situation formation and the producer would want a full maximum or allow thP. came about as follows: First, om· winter wheat crop was cut short, dealers or elevators a small commission for handling it. Thus it would and when it was hn.rvested prices advanced, but wheat was being not be profitable, and I think the ultimate result would be the closin~ bought and sold and delivered for export all during that time. Then of all these elevators and retirement of the so-called middlemen; ana the serious situation developed in the Northwest when the crop was a they might go a step further and say that the Government might decide failure and price-1 made n. further advance, but wheat was being de­ later to place their own agents at buying stations, and thus take charge livcred for export and was passing from the farmers through the mills of the grain interests as weJl as cotton. If this is not rank socialism, anfl into consuinption at the pl'tces that prevailed. Then th~ Argentine trop failed and prices sustained a further advance. Then there was a we do not know what the term means. We believe in fair and equitable lot .of advertising on the front pages of the newspapers and articles laws being passed that should affect all people alike. by Mr. Vrvoman and others in the Agricultural Department, and the We fully realize, howeve.r, that. parties in favor of the bill consider public w+>nt to buying in \ hysterical way, which advanced the price that the end justifies the means; but we believe in these war times a still fur'l:her. bill like this should be given a great deal of thought in regard to the The Government had 100 agents trying to locate the food speculator future consequences it may have. Of courselni am writing from an and hoard<-r. and the only thin"' that they were able to find was 16 interested standpoint, being in the grain bus ess, but believe that I egf! dealers in Chicago again t whom they brought indictment. have a right to make an honorable living out of the grain business so This cry about food speculation is a screen behind which they are . long as I do not Injure the interest of my fellow man. attempting to repress the price of the product. If there had been We can only ho:pe that the bill will not pass and that when our law­ one-hundredth part of the food manipulation charged, the United States makers give it their fair consideration they will not vote for the bill. Government agents would have certainly been. able to tell who was Yours, truly, doing it. · , D. HEAD & SON. I think that It takes n great deal of COJ.Irage to take the position P. S.-We would thank you very much if you could send us a copy of you are tu.king at the present time, but I believe that you are~bsolutely the proposed bill that is now before Congress: D. H. I·Jght. Yours, very truly, C. Y. SmrPLia. PRENTISS, OKLA. OKLAHOMA CITY, OKLA., June 21, 1911. Hon. T. P. GoRE, Senator T. P. GonE, U·nited States Senate, Washington, D. 0. Washington, D. 0. As debat{' on the Le,· food-control bill soon commences I wish as DEAR SENATOR : With the experience of 28 years traveling in differ­ a farmer to protest against the pa sage of this bill. I am 58 years ent Statt'S, and especially this State, among the farmers, and having old, and know the hardships the farmer has had to endure. When witnessed , some of the conditions resulting from poor returns for the!? 1917. ~ CONGRESSIONAL - RECORD-SENATE. 4l95

products which nsnaTiy advant~d «fter leaving the producer, I am " SEc. 4. That it is hereby made .u:n.la:wful fo-r any perSereof; knowingly to commit wMte .or willfully to per­ :m-ytb-ing be had ~en able to reahze from the farm. · -- mit ~reve.n.ta.ble rleterroration of any necessaries· in or in connection - Now thlrt the -:day s~ms near that tbe prices--of farm products can with thel:r producti{)D, -m.anofactu~ or distribution ; t.o board, as de­ and should be Buch that the thousands :o.f )p:rodnclive .aer in Okla­ futed in :seetlon 6 of this act, any neeessarles; to m

price; and that in five months' time a quarter of a billion dol­ Senator REED . . I have the figures before me, and I will not mislead you in quoting them. So that throughout the year, and up-even to t~ lars had been taken from the American consumer. 1 I repeat that present time, the price of flour has followed the price of wheat in the there was not a newspaper in tbis country that came to my market. That is correct; is it not? attention that did. not contain this statement, and they were Mr. HoovER. That is correct, always with that reservation, that the farmer did not get that difference in value. · - , warranted in making the statement b~ause Mr. Hoover sajd Senator REED. Mr. Hoover, I ask you it it is not a fact that the wheat thaf this was the case, and also asserted that the same, kind supply in the elevators of the large cities was practically exham;ted of robbery had not gone on in Europe, -lmt, on contrai.·y, in when the great boom came in the price of wheat along in the month of the May? · Europe the prices have been less than in America. Mr. HOOVER. No, str. I propose utterly to destroy and demolish both of these asser­ · Senator REED. Is it not a .fact that when wheat touched its .high price tions . .I propose to show, _if I may have, your attention, that they there was probably less than 200,000 bushels in the city of Chi<'ago in the elevators? are both unfounded in fact. I do not accuse Mr. Hoover, of Mr. HoovER. Well, you have the visible supply of wheat in the country course, of any intentional misrepresentatiol).; I do not accuse as a statistical matter at all times, and there bas been amplt> supply of any newspaper of any intentional misrepresentation; but I do wheat to carry the mllling throng.h until the next season. . Senator REED. No: but I was asking you about the market. I do not say that the fact ought to be determined, and this gi-eat case that want to get into any dispute about things that there ought to be no dis­ concerns the American people ought not to be decided upon a mis­ pute about. Is it not a fact that in the · elevators .of tlie large cities, when wheat rose so rapidly on the market, the wheat in the elevators in apprehension. the large cities was at a very low point? Do you know anything about Mr. Hoover's statement on this I ask to have inserted in the that? . . . . , RECORD without reading. . If any Sen,ator desires me to read it, Mr. HoovER. It seems to me that is a very broad statement. Thera is no doubt the visible supply of wheat was less than it was the preVi- I shall rea_d it now; but· his statement is clear and unequivocal. ous year, but it was not at a very low potnt. · · · · Mr. VARDA.l\1AN. I ll]ggest that the _Senator read it. Senator ·REED. Was lt not about 150,000 at Chicago at the very low 1\lr. REED. Very well; I will read a part of it, as follows: point? · Mr. HoovER. I don't know what the low point was. How . important it is that we should arrive at some method of ex­ The CHAIRMAN. I think ·tt was about 156,000 in Ch1cago the day they cluding the "h~gitimate" and illegitimate speculation from trades may closed. be perhaps emphasized if we consider what has happened during the Senator REED. And was 1t not in the public elevators of Kansas City. past year in the matter oJf flour. If we assume that the farmer last which is another one of the great grain markets, very m·ucb lower than year received". an average of., at the highest, $1.60 per bushel for his it is normally ? . : . , wheat, then with the addition of the normal manufacturing cost, Mr. HOQVER. I can not tell you about the particular situation in given righteous profits of distribution, the price of flour should not through­ elevators...... out the country in the larger consuming centers have exceeded $9 per Senator REED. I think you stated the visible supply in the country bane!, and yet the price of flour at a great many centers is $15 per was about 100,000,000 bushels. Where was that supply, do you know? barrel throughout the country and probably averages over $14. Some Yon do not know what was held in the big cities; do you know where the one is taking $5 per barrel on 10,000,000 barrels per month which 1s rest of it was ? marketed in thiq country. . This is $50 000,000 per month taken out of Mr. HoovER. I did not state it was 100,000,000; I said it was a little the Amer1can public, and since the raise of price of flour _above $9 per below the normaL barrel, wt- may assume rightly that over $250,000,000 will have been extracted from the consumer In excess of normal profits of the trade Senator REED. Oh, I thought you did say it. How. are. you able to and distribution. .. · say where it was held if you do not know what was held in the large ~~? - That is from his testimony, and in addition to it I ask the Mr. HooVER. I taka the statement lJ'f the total visible supplies in the country. I did not myself go.into each particular elevator throughout Senate to read pages 37, 38, and 39 of his testimony; and I ask the country. It SPeros to me here is a case where the proof o!' the cake to include excerpts from those pages as part of my remarks is in its eating-that we will have enough wheat in the country to carry without reading. us through to the next season. The VICE PRESIDENT. Without objection, permission is Senator REED. What 1 am trying to get at is, how do you know none of this wheat -was held by the farmers? As a matter of . fa.ct, it. was granted. coming into t,he primary markets, so called, at the rate of several mil­ The excerpts referred to are as follows : lion bushels a month, and that wheat is generally farmers' 7 'Wheat. · "Is Senator REED. Mr. Hoover, you stated in your manuscript, from which not that true? · · · · you spoke in the early part of your testimony : " If. we assume that Mr. HOOVER. Well, I rely on two or three dilferent sources of In· the farmer last year received an average, at the highest, $1.60 per formation. The first is a calculation in the department as to the prices buRhel for his wheat, then with addition of the normal manufacturing at the periods of relative tlow in the movement of the wheat showing cost. righteous profits of distribution, thP price of flour should not, that the bulk of wheat was marketed in this country before the end of throughout the country in the larger consuming centers, have exceeded January. · $9 per barrel, and yet the price of flour in a great many centers is $15 The other is the opinions expresst>d by the various farmers' associa­ per barrel throughout the country, and probably averages over $14. tions, of which I think we have consulted six, and other sources of Some one is taking $5 per barrel on 10,000,000 barrels per month which information, and some of them placed it at as low as $1.30. I took is marketed in this country." . the highest figure which was mentioned-$1.60. Mr. Hoover, do you mean to say by this statement that throughout • Senator REED. That is just the question I am trying to get at. You the year the price of flour has been $5 higher than the price it should say the bulk of thP. whPat was marketed in January. As . a matter of have been, based upon the price of wheat that the farmer receives? fact, there was marketed on the average nearly 5,000,000 of wheat for Mr. HoovER. No; it is $5 higher now than it should have been. The each week of January, February, March, April, and May at the 11 price of flour has been gradually ascending from its normal, which was primary markets, which is generally unilerstood to be farmers' wheat? . in a proper relation. For the 1lrst three months of the year it bore a Mr. HoovER. Not always; 'it may be line-elevator wheat. close relation to the price the farmer received. Since the farmer m8.1'­ Senator REED. Oh, some of it might oe; yes. The largest amount re­ keted his crop it has been gradually ascending until it has reached the ceived in any of these markets was a little over 13,000,000 bushels, present pricf-. which was back in July, right in the harvest. But now I am coming Senator REED. You assume the farmt>r has marketed his crop, but let to another question. us eliminate that. As a matter c,f fact, the price of flour in the market has followed the market price of the wheat throughout the entire year. 1\Ir. REED. Now, Mr. President, what are the facts? Unde1;~ with some slight fluctuations such as are to be expected. Is not that the case? • stand the point is that we have been charged $15 a barre_l wher:~: Mr. HOOVER. It has followed the quotation in wheat, but it has not we ought to have ha

Visible Movements E:\-ports of Flour, price wheat frotn. Month. Chicago cash Farm of wheat, wheat. Chicago futlire. per barrel, ~E~l~~ Month. United value. Chicag(). United 11 primary Statesanj States. markets. Canada.

1916. dents. Bushels. Bushels. 1913. Bushels. July! ...... 102~@106 101 @103l 42,628,00J 5,008,000 July 1 5,697,0J) July 8 ...... 101 @"107 103 @10! 41,820,000 4,195,000 July: 8 . 3, 163, opl July 15 ...... 1~@115 109 @112 92.9 $5. 4o@$5'. 60 39,681,000 5,412,000 July 13 10,806,00) July 22 ...... 115~120f 115!@117! 38,635,000 7,810,000 July 2J 9, 988,0~)) July 29 ...... 121 128; 11~120i 40,889,000 11,348,00::> July 27 7,605,00} 123 @l38i. 133 @136 ll 44,161,000 13,5~8,000 Aug. 3 7,S35,00) 134~147 1311@14~ 107.1 7.30@ 7.80 48, 760,00:> 11,827,000 Aug. 10 6,098,00) !~~: !~: :::::::: :. ~ ::::.:::::::::::::::::::::::: ~===: ::::.:::::: 143 151 135 @148, ~ oo, 996, oro . 11,8!4,0(Y.) Aug: 17 . 7,80:},00) -Aug. 26 ...... , ..- ...... ~ ...... 151 @1581 - 146~15-it , 52,546,000 ll,OOl,IY.l) Aug. 21 8,945,00() I· • • ,V.lSible !. ' Movemen :Exports·o'f ~ppl~!Of ' oiwheat,: ' ;w.beat.from .Month. - ~~~n l U

' i . 1916. ; ' : :Bushm. 1 'Btuhtl8. ' 1916. ~ ' BullhtlJ. I r Mt660i 000' •. 0,•671;000 -A.:ug. 31: , 8,:J:82,:000 t~i~ ~: :.::--_::~:: ::~:: :: ~= ::::~: :::::::::::::::.:.:::::::::-:: ~ : 14713'll@l49};.@155 "l . l' 53,·970,000 9;270,:000, Se-pt • . . 7,313,000 :146!@154 : $7 . .15@$8.10, 55,450,000. ·.i0,60l, I t j De_£. :·28" 3,226,000 I 1917. "19I7. I I f t I Jsn.:-11 •• l82"J@t92 '!75!@187 . ) 5&; 885,000! 11.4) B6.7i 000 · JJan. 5,!23,-000 uo-··--. ·····-·· ········-·······u••· ...... --· - ~ 193 -@201 ; .:.181. @190 1 I: Jan. 13 •••••••••••••••••• ~ ...... , •••• 1" 8)75@f8"'3Q' ~.1)3,500;000 >5;673; .~ Jan. ll: f 61 789,-000 184 -@191 lan. '20 .•••..••••• ··-··-····· ··-···--·~·· .. ····-····-··-..• ! .1931@198 ' • ' · , 5~826,!000 .5,..61.,000 .Jan. 1 1~ .5,644,000 Jan. "27 ••••••••••••••••••••••••••••••••••••••••••••••••••••••. 181 @193! ~ .· ..t , .659,,ooo • 5, .38(>~ 000' . Jan. as 7, 839, .ooo Feb.· 3 :-••.••••••••••••••.••••• : - .•• ----·-. -----· • ••• • •• :. • • • • 1l67i"@18lf ~ I~~~~ · j 48, 721,;ooo! ' ~054.-ooo .Feb. .1 , 6,603,.000 : 169' @lf8 : \l65!@l'l5 --:'1 · ~-'7:- ,·' I ·1'47, .888,000 Al,901 000 Feb. ,.. ; g, ;. p,855,.00Q Fcb.IO ..•••• : •..•.•• , ...... , 90 :Feb.,I7 •••••••.••••••.•••• ··-······ ••• -· . ·-•••• ·•••• .•.•.• : ··' •176.· ®.":~ ! 16~@177 ~VV)>Y"' • r~.,;~-O!lO) -: 4,,s55,000 .Feb. 15 ~ 4,118,000 Feb-24 •••••••••••••.••••.••••••.••••••••.••••.••••..•.••••.. T l75~@180 ~ 4i>,130)ooo· .,._,000,000 -Feb. 22 . 5,043,000 Mar;·3 •..••••...•••••••••••- ••••••••••••••••.••••.••. : •••••.. 18Zl@192 · .177!@189! ' } ; '.' 4~916,.000 ~4#i5f,• OOO !.Mar. ,r .1 4,512,000 Mar. 10 ••••..••.•••••••••••••••••••••••••.•.•..•.•....•••• .•. :; 198:·@202 , ~ fs6 @'192 I ._.o S5@ .~ "'20l • 43, 137, 000, ·••,tl!o ..ooDi . · Mar. .,.s , 5, 619, 000 1 184-;@1881! ..17.?t®l86i ::164; ,"'- .,._ ., 4}r~-(_JO(]j ,".5,285,.(}()() :\Mar. i}5 I 41 676.1 ()()() - ~~ · ~~ ::::::: :·:::::::: =~== ::: =~:::: ::::::::::::::::::::::: :t 11!)6..@001 ~@194 ' f 40,119,000 3,135,000 Mar.. ~ ·· 5 ·472::000 201,@212 l'l-9()!@199 39,317,000 . 6,691,000 .Mar. 29 4i26";!:ooo ~;: ~~::::::::::::::~::::::::::::::::~::::::::::::::::::::· 207~ @223i . 195~®214-l ) 37, 474,.000 :15, 7671000 ·A-pr. ·5 2; 330, 000 Apr:14 ...... ~ 111~@246 . ~ (KOO@l2:UO . ~:~:-oooooo: : 5,958;0.(~304 ~ ~227!@280 25 756,vuu ·'4;985,000 -Apr. •26- 6,611,000 .290.·@3.14 : ~280 · @255 l 32,148,000 ,4,967;000 May ~ 5,727,000 t3 .306 '@345 .279 @.325 ~~ fi~ ::::::::::.::::::::: ~:: ::::::::::::: =~~ ::::::::::::. il3.00@l&;-OO { . Ma.y 18--·· •••••••••••••••• ·-. ---•••••••••• -~ .••...••.. - •. ,299;@300 1 t.215 @240 - ~~:~: ~ ~ :~;~~;~] ~~-~~~- .-.~:~·-~~ I · l·May wheat• ... n nly, 't1916, ·. when : Chicago c.wheat •. W>3S ::$li.OS, :.the 'low ,;price, :tbrongl1 ~ the · m.illei. 'It. bas 1pas e.d !.thr·o:e:gh .the ·.w.holesaler. It fiour' was ·$5AO, :not-:$9, and the ~ consmner · got.his flounat $5.40. . ruts passed to ther}!)()iBtnvhere the-p~e- _come l to buy1from him. Pgtve the 1luctnations above1thnt .in·this•table. ·.Beyond(thaEl •can·ncrt :irac.e.tt. :On1Au.gust .12, .with,wheatra.t,$1.40, ,.flonr -was 7.30, .not'$9. ' Mr. ;LEJWJS. 'Mr. ' resfdent, "J ;fear · that l the t-8enator from ~T. USTING. ·:Mr. Pre&dQn.t,·may .I:ask:the Senator· a ques- ·wssourj has'TI.ot.ap,prehended•.what is·ip1the Ill.intl-of the Senator • I tiorf? . _ . .from· WisconSin, ·and, what--the Senator'trom ·;wisconsin has in- ~Mr. :REED. ·>Will the :Senator wait.untiEI get. through . with.~ :a.dverten.tly : :failed ,to, e.onv~_y,-lmt · ~hich .:-.beeomes ,-vt>ry t i.InPortant. th.istta.ble, ,.plea. E1fl • It:.is elea:rithat. be.,·Senatortfr m 'iWLsconsin,wishes1to· communi- :1\h·.:HUSTING. ·J:. ju:stwante:d to.a:skthe:.S-ena:oor-. what~ priees ca.te to tb.e 'Senator ··from ::lllisso.nri ~ tlult -probab_ly i'lli. . Hoover he· is uuoting. ,.,Are tho e -.t.he:pririoo of. $9, hklathe :Senator. seeks! to -refute, Mr. REED. '!!'h-ey tm-e -the ;wfr.olesaJe .'Pl'i-ces, • of course. was· the price Charged~ by-the Tetaller.wtbe consumer. •'.Mr.:.HUs.TING. · ~atds. ·the .!.mar-ket .prtce? · ~Mr. TREED . . Oh, ·no:;3Mr.IRoovertm.eant ,no:tbing,of,the kind . .. Mr• .REED. . .es.; the wholesaleTIIllll'ket _price. His· testimony shows· it. · · 1\fr. RUSTING. The Senator does not give·the•price -charged .Mr. LEWIS. 1I tlesired to . ascertain If ·that was not really the consumer.ny :the retailer?. what was m-eant. 1 Mr. 1REED. ·.Wh-y. it ,would ~ be .as impossible ,to do ;that .as i1\Ir. -REED. l\fr. cHoover meant ·nothing-of the kind, and his it wauld be to ell what. time the ·American citizen goes to bed, testimony will show _that he w~s talking .about the ,prices of because he goes to bed atxli.fferent"times. · [llhe jprice chn:rged by .llour by ·the •barr.. the retailer, as the Senator must know, varies with .the cities, .Mr. HU&TING. :Mr. .Pre iue.nt,J :want-to say to the Senator varies with .the parts of the cities, varies with retailers in -the now.that'I know· that flour has been sold in this eity, not .by the Cities, .and of.course.Lcan.not tell him-nobcoy can tell-what, barrel, but in smaller quantities, at the rate of more than-$16 tbe.retall,prices are. a barrel. t:Mr • . HUs.TING. · he 'Senator .said . th~Lhe -w:rs :AUoting .the 'l\-lr. REED. U.h.a-ve ne-t ·the slightest 'doubttof it; and T have prices charged '.the .consumer. "The · Senator now -answers ·the not the slighte t doubt, either, tthat there .has _been ·the same question ~ QY MJ'i.I,lg : that .that . is ..not .. the ·price charged the con- degree of difference in all sorts of things. '1 want to continue sumer. With ' this, argument, however. . Mr. REED. That is the wh6lesale price, and when you fix I do "not intend to be interrupted to the extent of arguing any the i\vholes-ale price, of .flour , of -course yon .fix ,i:.he price that uch miserable,. petty, senseleNs thlng as that there is a difference wheat -cost the .conS\llller ·-as near as you ·-can ·trace it to the ·between · the ·prices -that different retail men charge, because consumer. Of course, if you carry U on into bread and carry nobody can tracerthat, and even 1\.Ir. Hoover states that he does it on into cakes ;and .. thi.J;Igs of :that kind, :yeu can not get the not intenrl to· try to regulate the retailer at all. When you get price. to the retailer. he tu:rns the public over to the tender mercies of J\lr. . LEWIS. Mr. Pre ident-- the retailer, and that is in his testimony. ~r. _REED. I hope the enator. does not mean to say that l\fr. JOHNSON .of .South ,Dakota. 1\!r .. President-- I was not stating this matter .accurately. Mr. REED. The Senator from Idaho l[l\Ir. BoRAH] desires to Mr. BUSTING. ;.1\fr. I?resi.deht, I do not know. 'I'he 'Senator •ask me:a. .. question. I _yield first to him. stnteu · tl.w.t this •was the ' price .clliu:ged the consumer. It tis • 1\Ir. 'BORAH. The interruptions .ma

I 1917. CONGRESSIONAL- RECOR.D-· SENATE. 4199 farmer, as it is estimated by the Department of Agriculture; but Mr. WALSH. Mr. -President-- the figures I am using are the Chicago prices of wheat. I will The VICE PRESIDE.~T. Does the Senator from Missouri try to make it so that the Senator can hear. We will take the yield to the Senator from Montana? prices of wheat running from the first _week of July. They . Mr. REED. I do. average from $1.02 to $1.21. The price of flour ran from $5.40 Mr. WALSH. I beg the pardon of the Senator for interrupt­ to $5.60 a barrel, not $9 a barrel. ing him; but an inquiry addressed to him a moment ago by the We take the next week, which is the first week of August. Senator from Idaho [1\Ir. BoRAH] will, I fear, leave an unjust The low prices of wheat ran from $1.34 to $1.44-!. That is, there impression, and I am sm·e the Senator does not want to have is a high and a low price. I am taking the low prices, both on Mr. Hoover misunderstood about the matter. wheat and ori flour. The price of flour was .$7.30, not $9. Mr. Hoover did not say that a price of $1.60 per bushel for - Take the first week of September; by this time wheat ran up wheat would justify a price of $9 per barrel for flour. He said to approximately $1.50 and the pr:ice of flour to $7.75. that if no more than $1.60 was received for whear the price per The first week of October the price of wheat went up so that barrel of flour should not be to exceed $9. • . it touched $1.72. The price of flour had gone up to $7.90, but Mr. REED. Very well. I accept that correction, if it be one. had not reached $9. Mr. BORAH. I do not think that changes the situation. . Coming to the month of November, the price of wheat went Mr. BUSTING. 1.\.lr .. President-- up in the neighborhood of $1.80 and flour to $8.40, but it still Mr. REED. Now, do not let us have an argument started had not touched $9. here by associates, please, until I get through with this particu­ ._ The month of December wheat had dropped off, going to lar theme. Then I will go back and take up this other matter·; approximately $1.70, and fiour had dropped off, going down to but I want now to get in, somewhere in connection with each $7.60. other, these two points. , · · Coming to the year 1917, for the first week in January the Mr. BUSTING. I just want to clear up the point that is now average price of wheat in Chicago had gone to approximately under discussion, and then I will not interrupt the Senator again. $1.85 and flour had gone to $8.75. It still was below $9. · Mr. Hoover's statement is this: _ The first week of February wheat was in the neighborhood of $1.70, having dropped a little, and fiour had fallen off, going If we assume that the farmer last .Year recei,ved an average of at the highest, $1.60 per bushel for his wheat, then, with the addition to $7.60. _ of the normal manufacturing cost, righteous profits of distribution, the Coming to l\larch, wheat had gone up so that it crowded $2, price of flour should not throughout the country in the larger consum­ and fiour had gone to $9.20; and that is the first time it had ing centers have exceeded $9 per barrel. · gone above $9. So that his figures are the price charged the consumer, and Coming to April, fiour fell, although wheat rose a little. Flour the Senator's statement is as to the market price in the cities fell to $9, but the No. 1 fiour went to $12.50. , minus the· cost of bringing it into the houses of the consumer. Coming now to May, when the allies cornered the market, So that the Senator's figures do not necessarily disprove the wheat touched $3 ;. flour went to $13 to $15-the highest point statement of 1t.lr. Hoover. reached in apy of these months. Mr. REED. Oh, well, l\1r. President, if anybody wants t~ Th~ · same condition is shown in June. resort to that species of logic in order to becloud the plain · Mr. President, that is a very different story than that specu­ statement of a witness that is here in the record and can be lators got hold of wheat at $1.60 and proceeded to hoard it, and read by everybody, let him do it. I will waste no time with it. proceeded to run the price of fiour up to above $9, and to rob I have no interest in misstating Mr. Hoover's evidence. He took the American people of $50,000,000 a month. The fact is that $1.60 as the basis. He figured that $9 a barrel for flour would the American consumer was receiving this flour-that is, as near be justifiable. He then practically asserted that we were pay· as I can trace· it to the consumer, the regular quoted prices of ing from $14 to $15, and that we were being robbed $5 a barrel, fiour by the barrel-during 10 out of the 12 months for less and had been for months. I have shown that during all of than $9 a barrel. Mr. GALLINGER. Mr. President, will the Senator permit me? those months but two our prices were away below $9. I come The VICE PRESIDENT. Does the 'Senator from Missouri now to his assertion that because of food control prices are so yield to the Senator from New Hampshire? ' much lower in European countries than they are here. Mr. REED. -Certainly. Mr. President, I have not the time to follow everything out to M.r. GALLINGER. I think I am correct in the assertion that, its ultimate destination, so far as all the things that we eat are according to the quality of ·wheat, it takes from four and a half concerned; but let us take this one question of flour. I put into to five bushels of wheat to make a barrel of flour. the RECORD now a table which I challenge all Senators who Mr. REED. Yes, sir. want to llrri ve at a fair concl nsion-and I hope we all do­ Mr. GALLINGER. So that, according to the figures the Sen­ to examine. Let me tell you who prepared this table. It is ator has given, the rise in the price of fiour corresponded exactly prepared and is certified or stamped by the Unit~ States Depart­ with the rise in the price of wheat, which was an inevitable ment of Agriculture, Bureau of Crop Estimates, June 21, 1917, result. Crop Records Division. I challenge your attention to it. Here Mr. REED. Exactly; and there must be allowance made for are the New York prices and here are the London prices for slight fiuctuations up and-down, but that is the general rule. fiour, beginning with the month of May, 1916, and ending with It can not be talked away, it can not be laughed away, it can the month of June, 1917, both inclusive, which embraces a period · not be sneered away; that is the fact. of 14 months . • Now, Mr. President, I come to the next assertion which is Prices of flour in May: New York, $6.25 to $6.50; London. made by Mr. Hoover, and which is to the effect that-- $8.17 to $8.35. Mr. BORAH. Mr. President-- June: New York, $5.75 to $6.10; London, $7.83 to $8. The VICE PRESIDENT. Does the Senator. from MissoUii July: New York, $5.95 to $6.20; London, $7.32 to $7.49. yield to the Senator from Idaho? August: New York, $7.90 to $8.25; London, $8.69 to $8.86. Mr. REED. I do. September: New York, $8.25 to $8.60; London, $9.20 to $9.37. l\1r. BORAH. Before the Senator passes to this other sub­ October: New Yorlr, $8.50 to $8.75; London, $9.54 to $9.71. ject. did I understand him to say that Mr. Hoo\er conceded that Observe this doe not mean the consumer in either case, ac- $1.60 neat justified $9 a barrel for flour? cording to my friend from Wisconsin; it just means the price Mr. REED. He did. of flour by the barrel. Now, Mr. President, I come to the next statement of Mr. l\Ir. BUSTING. To whom? Hoover, and I read it, so that there can be no error about it. Mr. REED. The market price of flour. If the Senator doe3 Mr. Hoover said : not know what that is, I can not tell him. November: New York, $9.:;'0 to $9.95; London, $10.56 to $10.73. There can be no more vivid evidence of the desirability of food con­ trol in this situation than a comparison between our prices and the December: New York, $9.20 to $9.45; London, $10.56 to $10.73. prices of foodstuffs in countries where there is some measure of food That conclude 1916. Let us take 1917. administration. I will not traverse the prices of all commodities. January: Kew York, $9.75 to $10; London, $10.56 to $10.81. More to say, as a general fact, the average prices to the cons11mer are lower in food-controlled countries than in the United States. Prac­ February: New York, $9 to $9.25; London, $10.73 to $10.90. tically the entire wheat supply to Belgium is to-day imported from the March: New York, $9.75 to $10; London, $10.73 to $10.90. United States, and, despite the extraordinary costs of transportation April : New York, lii11.25 to $11.50 ; London, $11.75 to $11.92. the price of bread i GO per cent of the price in New York City. A large portion of the wheat of France comes from this country, and yet May-now we come to the wlleat corner worked by the allies the price of bread is, again, 40 per cent below our own. In England, themselves by buying 100,000,000 bushels and cornering the where food control was started too late, the price is 30 per cent below market, and here for the first time you find that in l\1ay flour our price, and in Canatla, again, we see a lower range of prices to the consumer than in our own country, although the producer realizes the went to $16.50 and. 16.75, according to the figures of the Bureau same price. of Crop Estimates, while it was $12.43 to $12.60 in London.

-- 'I

4200. CONGRESSIONAL-RECORD-- SENACI'E~ JUN~ 25,

In June flour fell off in our market to $14.50 and $14.75. I have there can be: no- real _comparison between the retail prices ot not the London market, but L assume for the sake of averages the man at the-crossroads and-the man who occupies the building that it remained at the figures last given:. in town. Wholesale. price of toheat t101.1.r on or .{b01.1.t the 15th of the tnont1~ at - Mr: HUS~!NG.- lli. "President-· - NtJw York attci London. · Mr. REED. I dG· not say that for any other purpose now fP~r barrel of 196 pounds.] than merely as I go along to point out the impossibility ot ' regula.t:ing-' re-tail prices. - New Yorlt-Spring. Lm:idan-American Mr. RUSTING. Will the Senator permit me one word 1 i>atents. sp:ring, good. The Senator- does not seem to understand or make clem~ the Years and months. point in this matter: The- question is-not as ta the retail price High. to the consumer. The noint the Senator b·ies to make is that Low. Higli. Low~ Mr. Hoover is guilty of a statement that does not conform to the fact The point- I tried to rai e· is this: Mr. Hoover says, in _ · 1916. ' efi'ect, the cost of"fiour Tto the- consuiner after the payment of - May __ ...••• _.•.••. ·-... ,_,:_ •• ·-··· •• A. $6.25 S6.50 $8.17 June...... 5. 75 6.10 1:83 ~:~ the charge of distribution, which means not only the ma.nu- July .....••...... •••...... •...... ••.•..• ~95 &.20 7.32 7.49 facturing cos~ out the jobbers' charge and the retailers' charge August ..•.. ~ _.-- .•. ··- ·······-····: ...••. 7.90 8.25 8.69' 8. 86 and tlie transportation charge, and it eventually gets to the con­ September... __... _...... ~ .•• ~_ 8.25 8.60 9.20 October ...... 8.50 8.15 9. 54- :~~i -sumer, ought not to exceed $9 a barrel. The Senator's figures

N ovemlx>r. __ . _••••••••••• _ ••A ••••• ·---· !L 70 9.95.. 10.56 I 10.-73 go no further than the market price at certain places, and leave December.··------· ...... - .. 9.20 9.45 10.56 10.73 out of the question the cost of distribution. Consequently 1\!r. 1917. ' Hoover's statement is to the effe-ct that all the consumer ought January .... ·--·-·-··- ······· .. -· .. ·-·-· 9. 7.5 10.00 10.50 10.81 to pay: when he- gets it into his house is $9 a barrel. 9.00 9.25 lD. 73 10.00 Mr. REED. In what shape? ~=~:::::::: :::::::::-:-::::: :-:-:~::: ::: 9.75 10.00 10• .73 U.25 1L50 ll. 7fT ~t:J · 1\!r. RUSTING. Ready· for use·in .the house. ~;~::::: ::::::: :::::~:::::::::::::::: : :: 16.50 16.75 12.43 12.60 Mr. REED. In the shape of fiour? June ...... 14.50 14.75 12.43 12.60 - Mr. RUSTING. Yes-; in the shape of trour. So the Senator, ______;__ __ ...!._ __ _!,_ __ __...!,_ ___ it seems to me, misinterprets the statement made by M;r. Norn.-The. prices at New Yorlr:" are fl'om the New York Journal of!' Hoover; because Mr. Hoover says· that $9 ought to pay for Commerce and prices at Londos are fl'om Mark- Lane Express. putting it in the consumer's liouse. Anything in excess of that, Now, observe that for 12 months out of the 14 months fiour" he says, is more than a fair price. Anybody who has bought was cheape!l in New York than in London. Instead of our be- ffour-- ing robbed $5 a barrel during this time and London being saved Mr. REED. . I am not going~ yield to the Senator to make $5 a barrel by food control, for 12 months out of the 14 months one of his speeches. If he has a question to ask, he may ask the uncontrolled market of the United States was better than it; but I can not yield in the middle of a speech. the controlled market of London, and for many months they 1\.lr. RUSTING: I merely wish to state that everybody knows paid an enormous percentage above, where they had all the flour has cost the consumer who has·paid for it in the last tour blessings of food control. or five months· $14 a barrel and over. The table shows that throughout the 12 months flour was Mr. REED. I know that the consumer for the last four, five, materially lower in New York than in London. The average or six months has· not paid' any such price, if he bought with pl'ice ilL the United States for the whole 14 months was $9.59• any sense. . Of course,i.f a man went down and bought 4 or 5 a barrel, and the average price in England was $10.20 a barrel; pounds of flour at a . time, and paid the retailer whatever he and if yo11. assume 10,000,000 barrels consumed each month in asked, that is a different question. I do not intend to fool the United States, as Mr. Hoover assumes, then the 140,000,000 away my time or the time of the Senate heckling with my barrels cost the American people $85,400,000 less than the same friend from Wisconsin in regard to what 1\!r. Hoover said. amount of flour cost the English people, and instead of our His testimony is here. Partial quotations from it will get no one get.iing our flour at $5 more a barrel than they pay., we receive anywhere. I have no desire to misrepresent Mr. Hoover. r do it actually for less than they pay. not think 1\Ir. Hoover made a statement he did not believe, but . Yet this stupendous mistake has been sent to the people of I do say Mr. Hoover was in error in regard to his statement, t:qe United States as the solemn fact in the case, and it will and all Senators have to do is to take 30 minutes of time and be as hopeless to expe-ct the facts to be sent out and to reach read his testimony, and they can take either my construction these people as it is to gather up any slander so that it will or the construction of my distinguished and able friend from be completely eradicated. I do not mean that these were Wisconsin in order to arrive at a conclusion that Mr. Hoover slanders. I am using that term by way of illustration of the was talking about the price of flom·, and the only way you can di.ffi.culty of picking these things up. Senators, you can not . fix that is to have the price· of flour as it is sold by the barrel, change a fact by juggling with the fact. and he was talking about it by the barrel. not by a handful I do not say that the e figures I have given you are conclusive or a spoonful or a pound, but by the barrel. of anything except that we have been going upon a mistaken Mr. President, I challenge attention now to another thing, basis, and that the people in this country have been-told by when we come to the question of prices, price regulation, and Mr. Hoover and other advocates of this measure that prices so forth, that the rise in prices has been the same all over this are excessively high for flour, that they have been robbed all round earth, speaking broadly and generally. ' the year through, whereas the prices I have quoted show that l\1r. NORRIS. Mr. President-- fiour was at its normaL value the greater part of the ,last year. 1\Ir. REED. I yield to the Senator. What was charged by the retailer I do not know, and for the 1\fr. NORRIS.· In regard to the Senator's very interesting purpo es of this argument it is immaterial, because, mark you, statement and comparison of prices, r wi h to a k him if he 1\fr. Hoover himself expressly says he does not expect to control has succeeded in getting any figlJres be ides tho e he has given? the prices of the retailers. . I understand he has not given the figm·es as to either Belgium :Now L approach the question raised1 by my friend from Wis- or Paris. consin [l\I.r. RusTING]. Let me show the impossibility of get- :Mr. REED. I am coining to those. I am satisfied we might tlng at retail prices. Here is a man who is selling groceries, as well throw out of consideration the case of Belgium. Bel­ let us say, at the crossroads in the country. He has a building gium is a conquere;cl country, under the control of military that perhaps cost him $500 or $600 to build. The ground de potism. The people are being practically supported on char· that he occupies is- not worth perhaps more than $50 or $75. ity. Prices, therefore, in Belgium would not afford us very He has no grotmd rent to pay. He has no heavy cost to pay. much real information for the pm'J)oses of compari on; but I He does his work himself. He sells· to the people of the com- am coming to some other countries. munity on a profit that will enable him to live and save some- I ha\e in my hand the Monthly Review of the United States thing over. Another man in the city of Washington or in Bru:eau of Labor Statisti for the month of June, 1917. I the city of New York rents a store in the busine s part of call attention to the fact that two thing are pretty clem·ly shown the town and may be obliged to pay $12.000 or $1.5,000 a year by the fi'gures I am,about to give: First, that the price in food· for rent. He delivers his groceries to all parts of the city. A controlled countries have l>een a little higher than they hnve lady orders 5 or 10 cents' worth of something and a man must in tho e where they have not had food control; and, second, be sent to deliver it. The man who rents the building chm·ges that there has been a .general rise of prices throughout the wot•ld, that rent becau e it is in a favorable location, and the man who which r again insi t i due chiefly 'to tl1e general cau es to which .rents thB buildmg probably has to pay interest on an enormous I have already aalled attention. But let us take tlie e othe~ loan made upon that building. It is, of cour se~ manifest that countries. As to France, I read from pages. 963 and 964 of the 1917 .. . CONGRESSIONAL :RECORD-· SENATE. 4201

Monthly Review of the United States Bureau of Labor Sta­ Per .cent of inorea&e in p1'iccs ~f tltlriouB-,artiolcs of food in Great Britain, tistics: F-e-b. 1 Gna Mar. 31, 19n, .-Oon.tinued~ ' The general statistical 'Office of France has required the mayor of I each city -of over .10,000 pop:ulation (excepting Paris) to report the 'Per1:ent o.f.i:ncrease from J'uly, 19111., to- prices of 1.3 !articles of household .consUILUltion for the first quarters of 1--911 and '1913-- Feb. 1, 1917. That gives us the period before the war.

FRA ' CE. Articles. l [Bulletin de la Statlstlqtre Ge1reraJe de ia France, 'October,. 1916, Towns Small Towns Small pp. 37 and 42. J -· · · · · -· · - - of over towns Un;ited o1 over towns U~ed 50,000 . and vii- King- 50,000 and vil- King- The general statistleal efllce of .France has required the mayor -of -each city of o-ver 10,000 pooulati.on (excepting P.aris) to .repDrt . tbe 1~~'::;. ' lages. dom. I~IT.!. lages. dom.. prices of 13 articles of household -consumption for :the first quart-ers of 1911 and 1913, the third quarter o1' 1914, the fu:st and· :third [email protected] of 1915, and the first, second, and third quarters of 1916. · Butter: The e priee ~ applied to the quantities . used during a year 'by a Fresh.. .•..••.•••...• : . .. - -·-' 76 "75 78 81 80 llousehold of del Lavo'I'o, Mar. 1~ 1917,JI. 46, and Apr.1, 1917,-p. 56) pub­ GREAT BRITAIN. lishes each month the retail prices of seven a.r.ticles of food eQUated {Board .of Trade Labor

~ _, ' ' .. ·- /

~ 4202 OONGRESSION AL RECORD- BEN ATE. J uNE 251. . '·

The table shows that there bas been in Italy substantiall~ Relatit·e f)rices in the N etherlands, 1918 to 1916, etc.-Continued. . the same rate of increase as in England. It is difficult to ex­ Year- plain these tables so that they are as clear as when you look Det'- Janu- at. them. .I ask leave to insert ill the RECORD this table, to­ Articles. ----+---~----~---1 ~~ ~H. gether with the statement accompanying it, and I ask Senators 1913 1914 1915 1916 to examine it for themselves. ------'---'----·1------1------I come now to the Netherlands. · Can any Senator here an­ Butter: swer me whether they have food control in the Netherlands? I Table•..•...... ••..••..•.•.. 94 97 130 1{9 155 161 . am not informed myself. 135 142 'JIJ7 228 24.1 24.2 I quote from the monthly review abo\e referred to, pages 136 137 192 214 234 240 ID~~~-~: :::::::::::::::::::: 116 116 128 137 14.1 128 966 to 967, which is as follows: · Soda ...... •••••••..••...... 83 83 117 '1RJ7 300 283 Starch.•.•.•••••••.••••.•• : ...... 103 107 130 157 183 187 NETHERLASDS. Sirup...... ••...••.•••..•...•... 100 100 125 161 168 175 Sugar: [Maandschrift van bet Centraal Bureau voor de Statistiek, F ebruary, Granulated ...... ••.••..... 89 91 105 115 116 llG 1917, pp. 193, 194.] Brown, moist • .•...... 85 89 98 102 102 103 The bulletin of the bureau of statistics contains statistical tables Tea ...•...... -...... •. 112 113 116 119 119 119 showing the trend of wholesale prie€s of grain, oils, coffee, sugar, Vermicelli ...... 121 128 203 207 Z10 Z10 k erosene, tin, etc., and a table of relative prices of 20 articles, in some Soap: .Df which more than one grade is given, so that the series is composed White, Bristol...... 100 100 119 126 134 134 of 29 items, and al o a table showing the relative price of coke in eight Green, soft. • • • ...... 87 87 121 158 187 154 cities. Salt...... • • ...... • 80 80 90 90 90 100 Retail pi1ces are based on reports furnished by various cooperative ...._------:------. societies. The average prices for the year 1893 are used as the base Average...... 114 1161 1421 167 186 - 186 in calculating the relative prices. The following table shows the relative prices thus obtained for the The price of fuel varied in the different localities. The yearly · ' years 1913 to 1916 and for December, 1916, and January, 1917. . arithmetical averages of the relative pi1ces for the eight cities are "' reported as follows (1913=100} : 1914, 95.58; 1915, 123.73; 1916, Relative fJt·i ces i n the K etherlands, 1913 to 1916, ana Decembet·, 1916, ana 152.1Q; and for the months of becember, 1916, 168.43, and January, January, 1911. 1917, 177.37. . [Average p; ices for 1893=100.] Thus it appears that over in those countries, in the Nether­ lands, the same general rise has occurred. Year- I call attention now to the Scandinavian countries. This Decem- Janu- Articles. ber, ary, table relates to the actual and relative prices of 22 commodities 1916. 1_917. of household consumption in th·e capital cities of the Scandi­ 1913 1914 1915 1916 navian countries, July, 1914, and July, 1916, and February, 1------1917. It appears that the1•e is some regulation of prices by law, Beans: and that is indicated in the table here as there is a ma~um Brown ••...... 154 157 175 232 293 2i5 price, but if Senators will examine this table they will find White ...... 166 176 200 259 345 348 Peas: that it, as well as those I have given, shows the general world Chiek: ...... 150 161 178 194 239 242 rise in prices. r 225 Yellow ...... •...... 125 139 157 177 225 · SCA~DINAVIAN COUNTRIES. Green (dry) ...... •...... 157 143 160 230 290 287 Barley'bgrit s, pearl. ..••...... 113 ~ 116 142 165 168 174 [Capital cities.] BuckW eat, grits ...... 104 117 171 200 229 229 Retail prices averaged from monthly quotations reported by dealers ..... Oats, grits ...... 103 103 137 150 147 147 in the capital cities of the Scandinavian countries are fairly com­ Cheese: parable, as the habits of consumption and manner of life are v ery ~iced , Leyden ...... 140 139 160 180 194 194 similar in the three countries. The commodities reported for Norway Ullcream •.••...... • 124 125 137 125 118 1'}£ and Sweden are quite similar in quality. while those for D enmark are Cofiee ...... • 94 88 91 100 103 103 less comparable, particularly as regards meat. Quotations of milk. Oleomargarine...... 127 99 102 110 113 114 butter, oleomargarine, eggs , potatoes, flo~ · coffee, sugar, and li:erosene Flour: are quite comparable. Sugar prices in ~hristiania are noted a s ab· Rye . •...... ••.•.••. 85 81 115 130 141 141 normally high. In Copenhagen sugar purchased by card is con ider­ '\Vheat ...... •.... ••••••.•• 124. 129 159 159 171 188 ably lower than when purchased without card. The- highest prices for Buckwheat...... •...... 105 110 152 195 243 262 coal prevail in Copenhagen.

,Actual and relati ·ve prices of 2Z commodities of 7wusehola consumf)tion in the capit al cities of tlle Sca11di nat:·ian co~ntries, July, 191-f, J1tZy, :W16, January ana February, 1917. [Source: Sociala Meddelanden utgivna av K. Socialstyrelsen., Stockholm;1917. No.2, pp. 208, 209.) ACTUAL AVERAGE PRICES.

Stockholm. Christiania. Copenhagen.

Articles. Unit. Ju1y, July, January, February, Ju1y, July, January, February, July, 1914. 1916. 1917. 1917. 1914. 1916. 1917. 1917. 1914.

------:------·1----!·------1----~ ------Cents. Cent8. Cent8. Cents. Cents. Cent8. Cents. Cents .. Cen/.8. Cents. Cents. Cents. Milk, whole ...... Qt ...... 4. 3 5.3 6. 1 6.1 4.8 6.6 16. 6 16.S 4.8 6.1 7.6 7. 6 Butter, creamery...... •.•..... Lb ...... 29.9 36.5 139. 5 141.1 31.1 40.1 47.4 47.4 ~8 . 6 36.6 46.8 47.3 Oleomar~e , vegetable .••••.... Lb ...... 16. 9 24..3 38.7 17. 0 20.9 25.4 25.6 15.2 19.9 ~-9 20.9 E ggst stnctJd. fresh ...... Doz ..... 24.1 35. 5 60.5 ..... ei:a· 28.9 52.9 . 93.6 90.0 24.1 42.6 68.3 66.9 Pota oes, ol ...... •..... Bu...... 66.-1 60.4 102.0 141.7 98.2 100.1 173.7 86.9 47.2 113.3 92.6 92. 6 Peas, yellow ...... •.•••••.••..... Lb ....•. 3.2 6.3 7.5 10.0 • 4.9 11.5 13. 0 13.4 4.9 10.1 10.1 10.8 Flour: ~ '\Vheat ...... : ..... Lb ...... 3.9 4.5 2 5.1 2 5. 0 3.9 5.3 7.4 7. 7 3.2 4.5 5.1 5. 6 Rye...... Lb ...... 2.9 3.3 4.4 14.3 2.4 4.7 6.4 6. 7 ...... 4:7· ····--9:2· ...... Oatmeal . . ·····················- ·· Lb ...... 4.1 6.0 8.0 10.6 4.4 6.6 7.8 8.5 ··· ·· · s:r,. 9.2 Bread: ' Lb ...... 1.9 7.4 7.9 7.9 2.9 4. 7 6.0 6.3 31.8 3 2. 7 3 2. 7 3 2. 7 Wh~aien : ·wi iii· mmr·:.:: :: : : : : : Lb ...... 66.0 10.3 12.2 12. 2 6. 7 .0 8.5 40.0 48.0 6.8 8.1 Beef: Steak ...... Lb ...... 15.2 31.7 31.1 28.6 16.0 39.8 36. 3 35.5 •17.0 4 37.9 4 33.4 4 33. 4 Soup ...... Lb ...... 12.4 23.9 24.1 23. 0 15.3 36.. 2 32. 6 31.4 613.4 5 33.6 6 23.3 5 23.7 Veal: Steak, fat ...... •...... •.... Lb .. . : .. 17.6 29.4 32.8 30. 4 17.1 39.5 43.8 38. 3 e 17.0 •as. 1 G 29.2 6 28.6 Steak, tender ...... Lb ...... 12.3 19.7 23. 5 ~.8 10.1 27.5 27. 1 22.4 713.4 7 31.8 125.3 7 24. 3 Pork: Fresh ...... •••.•...... Lb ...••. 18.1 28.6 34.8 34.3 17.6 34.9 43.6 43.5 8}3. 4 114.6 814.6 814.6 Salt ...... •...... Lb .. : ••• 18.2 31.1 35.1 34.3 19. 4 37.4 4.4.1 43.5 '20. 7 t 20.7 9 20.7 Lb .•. •. • ~ - 2 24. 7 43.2 58.3 'lRJ.O 27.8 32.9 32.6 ·····25:5· 40.0 33.7 . 34.3 ~::: ls:J~~:::::::::: ~:::::::::: Lb ...... 7.8 8.3 .3 8.3 6.9 13. 1 13. 1 13.4 5.2 6. 3 10 6. 3 10 6.3 Kerosene ...... :-:-: Gal .•••• 18.3 27.4 29.4 29,4 18.3 29.4 29.4 29. 4 18.3 21.3 21. 3 21.3 Coal ...... ~ .. Bu •.... . 22.6 49.6 53.8 61.4 17.8 62.3 156.7 . 1 56.7 16.1 ()4.2 . 65.6 65.6 Coke, gas ..•...... Bu...... 12.6 'lRJ.9 27.7 31.2 15.6 33. 5' 33.5 33.5 11.8 26.0 'lRJ .O 33.1

1 Maximum price by law. a Veal, forepart, highest price. · .. 2 Ground to 75 per cent ; max,imum price from Jan. 15, 1917. 7 Veal, lorepart, lo'west price. . . . . a Price per pound, rye bread baked m 8.8 pound loaves. • Pork, fresh, shoulder; maximum price fixed from July, 1916. • Beel, fore part, highest price. 9 Breast, maximum price. 6 Beef, fore part, lowest price. 10 Maximum price. If purchased without sugar card price is 18 ore (4.8 cents) higher per pound. ~ ~ . " 1917.. .CONG_RESSION AL ·RECORD-SENATE. .4203 • • .J. - , -.

A.ctual mld reiauve price& -of !! commoditie& of h-ousehold conlffl.n~ptio-n in. "-the capital -citiu of rthe Bcan4i1tavian-conntne8, Jitly, 191+; July, ~J.B, · Jrscnu.ary and February, 1917-Continued. ...

BEI.AnVE PJU.~s. {J'uly, 1914=100.)

' Stockholm. Cllr.istimia. Copenhagen.

July, J'uly, January, :February, 1uly, 1uly, January, February 1uly, July, Janwuy,l Febnmey 191!. 1916. 1917. 1917. 1914. 1.9-16. 1917. 1917. 1914. 1916. 1917. 1917. ' lfilk, whole ..••••..•• ·-..•.••.••••.•••• ·--·. .100 124 141 ltt 100 137 137 142 100 126 158 158 Butter, creamery .... _...... 100 122 132 137 100 129 152 152 100 128 164 166 Oleomarganne, vegetable...... 100 144 229 ...... 254. 100 123 149 151 100 131 138 138 147 :251 100 183 323 311 100 177 283 277 ~~r:t~~~~~: -~~--- ~::::::::::::::::::;::::: ~~ 91 154 214 .100 102 75 88 100 240 196 196 Peas, yello-w-- ...... ··-... 100 ax~ 2J8 315 100 238 268 2i5 100 208 208 223 Flour: . I Wheat...... 100 116 131 128 100 138 191 i97 100 142 162 177 Rye...... 100 113 150 146 100 195 265 275 Oatmeal...... 100 144 194 266 100 150 178 194 ··· ·-· ioo· .... ""is7· 195 195 Brea1: Rye...... 100 153 163 163 100 163 204 217 . 100 147 147 147 Bee~eaten, with milk...... 100 129 152 152 ...... ·········· ...... 100 1.20 f40 168 Steak...... 100 209 205 188 100 248 227 221 ...... ioo· ··-···235· 193 194 185 100 237 213 205 154 156 Veal:SOUJl-····~······················· = ······- 100 Steak, fat...... 100 167 186 172 100 230 255 223 100 210 171 168 Steak, tender...... 100 11)0 191 169 100 272 269 222 100 238 :1.89 182 Pork: Fresh ...... ··························· 100 158 192 189 100 198 248 247 100 109 109 109 Salt._ ...... · 100 171 193 188 100 193 227 224 122 214 289 100 107 127 125 100 118 132 134 ~~::: ~~~~:::: ::::::::::::::::::::::::::: ~~ 106 106 100 189 189 193 100 121 121 121 Kerosene. . . . • ...... • . . . • . . . • ...... • ...... 100 150 161 fg'i 100 161 161 161 100 117 117 117 Coal...... 100 220 238 272 100 3;j] 319 319 100 400 409 409 Coke, gas...... • • • • . . . . • . . . • • • • . • • • . • • • • . • • . 100 214 220 248 100 215 215 215 100 220 220 280 l--~~~-~----l------~------~-----~~-----~------1 ------4------~ Average for all commodities...... 100 152 < 185- 200 100 185 204 m 100 181 182 186

The ·same condition now is true of Norway. I ask leave to .A..'Verage prices of $4 articles of household consumption in Norwav, ../uly, 1911,, etc.-Continued. insert that table as it is here given. The PRESIDING OFFICER (Mr. POiljDEXTER in the chair.) In the absence of obj~tion, permission to do so is granted. RelJrtiVll priee !or the month Average -of- The tatement referred to is as follows: prico, Unit. t.~ORWAY. Article. July, The official bulietln of the Norwegian labor <()ffiee (Sociale Med· 1914. October, Novem- Deeem- delelser, utgit av Departementet for Sociale Saker, 1916, No. 6, pp. 1916. ber, 1916. ber, 1916. 178 and 180) shows that the general level of priees of 24 articles, com­ prising 43 grades and 9 cia st>~; of household commodities, has ad· vanced since July, 1914 (100) to 182 in ·October, 1916 187 1n Novem· Oleomargarine: lber, and 194 in December In all but 7 of the 43 quotations the l'ela­ Best •• ·-················-·· Lb...... $0.174 . 131 136 138 tive prices advaneed during tbe period October to December, 1916. Inferlor ••••..• ~·-········· Lb .....- .131 143 150 155 Tbe bases of the computation consist of reports received from 17 Cheese: -cities. The following table shows the average prices -durin1 th-e month Goat's milk. •.•..•..•.• ·- . . Lb...... 199 168 173 174 ~i f~i3(j: 1.914, and the relative prices 1based thereon for the ast .q~rter Cow's milk...... __ •• ••••••• Lb -·.... . 070 215 219 229 Fresh...... Lb...... 097 238 2!3 255 Average prices of 24 .article8 of household consumption in Norway, July, Eggs, fresh...... Doz •.. ·- • 264 202 230 288 191 9-, and the-ir relative prices in October, Novembet·, attd December, 1------1---- 1916. A verage far the group • ...... 169 175 185 :RELAT-ITE 1'-BlCES. Wheat flour ••...... •..••... Lb .....• .038 159 177 186 (July, 1914=100.] Ryeflonr-...•....•.•.•...•... Lb ....._ .024 226 242 253 Potato meaL.....•...•...... ·-. Lb .•.~·· .057 201 201 2ll2 Bread,Jamily •...... ••...... Lb ...... 029 1143 1151 ' 157 RelatlVll price for the month Beans, brown •••••••••••••..••. Lb •...... 043 274 275 276 Average or- Barley, pearl•••••••.•••• - ••••. Lb•...... 03.2 189 203 218 Unit. price, Rice, grits ...... Lb ...... 058 138 141 142 Article. July, Oatmeal: 1914. Oetober, Novem- Deoom- - Domestic.•.••.•••.••..•••.. Lb ...... 042 157 .160 168 - 1916. beT, 1916. ber, 1916. American •.•..••. __ •.••••.. Lb ....•. .038 158 168 175 Potatoes •••..•....••..•..••••... Pk ..•... ;065 1.15 116 I 124

Beef: Average !or the group __ ••..•• ·-. . • ...... ~ 1.76 183 190 Fresh roast •••••••••••••••• Lb .•..•. $0.173 204 208 215 ~====~=====F;==~ Sou.p._ ••• ...... Lb .•.._. .152 207 213 219 Coffee: Mutton: Java ••••••••••••••••••••••• Lb...... 342 114 117 121 Fresh, bind quarter ••.• : • •. Lb ...... 181 184 188 195 Guatemala...... Lb...... • 306 113 117 117 Fresh, fore quarter ••••••••• Lb ...... 168 191 194 201 Santos .••....••. ·-··-······ Lb...... 267 117 117 118 .Salt.-.• ·~·· .... ·-·-·.····- Lb ...... 136 224 235 246 1------~------r------~------Veal: A verage for the group .•.. . ..•...•.. _ ...... 115 117 1.19 Ba~lr, roast .••••...... Lb ...... 175 215 217 219 I======··F=====~===== Fore quarter .•.•.•..••..... ·Lb ...... 154 228 235 227 Sugar: Thin ..•••• ·-··············· Lb ...... ill 193 188 215 Refined ..•....•..•.••....•.. Lb...... 070 180 183 182

Mr. REED. Sweden ~s also given .sep~rately, in a .,_ separate lin_e ; wait until- th~y commence to come ·in to our· markets- as tnble, and I a. k leave to insert that table. they will by the millions of bushels, and you will -see a- r~pid The PRES~DL.~G OFFICER. Without objection, it is so drop, just as there ha~ already been an enormous ·falling off ordered. in the price of wheat If you will walt a little bit and give The table referred to is as follows : time and the good Lord·-a- chance, a good many of these diffi­ .Axrrage retail prices of commodities in Sweden in January, 191~, 1916, culties wUI disappear. December, 1916, ana January, 1917, 01nd per cent of i1tcrease, January, Mr. P,resident, before I leave this topic I want to pre ent a 1917, over January, 194 ana 1916. - - . table showing the coinp_arison of the increase of ·prices in Great [Somce: Sociala Meddelanden utglvna av K. Socialstyrelsen, Stock­ holm. 1917, No. 2.] Britain-and I mean ·by that the British Isles-and in the lJnited States, _the prices in Great Britain at the present time Per cent or in- being comparEX). with the Pl'ices in July, 1914, with a similar com­ Average price dnring- crease. parison. in the United States, the two tables presented now show- ing the--increase which has occurred in percentages. . J'an- J'an- The table is as follows : Article. Unit. uary, Pet• cent ot increase in prices of tooa in Great Bt·ita-ltt, Mar. 31, 1911, a-s J'an- J'an- Decem- Jan- 1917, ~:ft'; compared toith Jtlly, 191.-t. Also in the United States Apr. 15, 1917, uary, uary, ber, over over as compared 1citl~ Jt~ly, 191-f. - 1914. 1916 . . 1916. mf: Jan- Jan- uary, uary, [Taken from the Monthly Review of the Unfted States Bureau of Labor 1914. 1916. ,Statistics, pp. 954, 955.]

Cents. Cents. Cent&. Oenta. United United · Millr, whole ...... Qt-.... 3.6 4..3 5.1 5.3 50.0 !13.5 Kingdom. States. Butter: Table, best ...... Lb .... 29.1 37.0 39.5 39.5 36.0 6.9 Cooldng, country .... Lb .... !:.'6.1 32.8 39.4. 39.4 50.7 20.0 Per cent. Per cent. Oleomargarine, vege- Beer .... ~ - ...... 105 2' table ...... Lb .... 16.8 22.4 35.4 35.7 113.0 b9.8 Bacon...... - 78 36 Eggs, fresh ...... Doz ... 33.8 4.0. 7 55.6 54.5 61.4 34.0 Bread ...... _...... 93 36 Potatoes; old ...... Pk .. . . 12.8 13.7 20.3 21.3 66.7 55.2 172 92 Lb .... 3.6 6.8 7.1 7.1 93.5 3.6 ~a:-~.~:~~-~~!~:~::::::::::::::::::::::::::::::::::::::::::::: 60 H ~~:-~r~:U: ~::::::::: Lb ... . 5.6 12.4 16.3 18.6 !132.6 50.0 78 56 Uour, wheat, Sw;ed.ish, 72 50 best ...... ----- Lb .... 3.8 4.6 14..4 14.9 29.9 5.3 !~;:;:~:::::::::::::: ::::::::::::::::: ~:::::: :::::: :~:::::: ~ :: 117 225 Meal, rye, Swedish, best ...... Lb .... 2.6 3.6 3.9 4..3 66.7 16.7 Oatmeal, steamed ...... Lb .... 4.4 6.0 6.8 7.4· 69.4 24.5 1\Ir. President; I want now to show, if I can, that this l.>ill, Rice, Swedish, best ..... Lb .... 4.9 6. 7 7.1 7.9 62.5 38.3 Bread: while it is broad enough to reach almost every kind of industry,. Rye, bard, loaf...... Lb .... . 5. 0 . 6.3 6.8 7.3 46..3 15.4 yet it is in fact aimed at the American fn.rmer. When the Rye, soft ...... Lb .... 4.6 5.8 6.3 7.3 57.9 25.0 American farmer wakes up to· this· proposition, I think all of Lb·.... 3.8 4.5 4.9 5. 7 W":ea~~<>iJ; ·~ili · 51.6 27.0 us will find the question of sufficient importance to giv it .·o me . water, cheapest ... Lb .... 5.3 6.3 7.1 8.1 52.3 28.8 careful thought and study. Wheat, loaf, with The examination of Mr. Hoover developed nothing .more in­ milk, cheapest ..... Lb .... 7.3 7.rf" 8.4 10.1 38.3 27.7 teresting that the fact that he did not understand that tllere -Beef fresh: - - _ Roasting ...... Lb .... 14.7 18.2 26.9 27.0 83.5 48.0 was contained in this bill several great controls to which bis_ at­ - Soup ...... Lb .... 12.2 - 15.7 23.7 23.8 96.0 51.9 tention had not even .been called. He ·doubted that ther(' was -Veal, roast::;r.: anything in the bill that would give the right to control \:hat­ _ Fatten ...... Lb .... 16.0 20.4 28.1 28.3 76.5 38.7 Young ...... Lb .... 8.9 12.2 17.3 17.5 97.3 44.0 ev-er went on the tables of the people; and yet when his atten­ Mutton: tion was called to the word " consumers " he readily agreed Fresh roasting ...... Lb .... 15.9 2L3 28.4 28.4 78.6 33.7 that, in his judgment, that ought not to be permitted. Atten­ Salt, Swe

Second, it is propose

...... But. the compfflrison: slioold n:o lulve been with t tmst week of :Mr. REED (eDntinuingJ; rxftat ~.lr- Hoover- did· no_t app~ar to 1 June, 1915, for the wmr was already o , and the- prtee h-ad fm.ow that ,tho.se> words we~ in: the- raw, a.ruf I. do not trunk I all:eauy enormously a.dvanc:ed'. I give trte- figures, h.QweveD,. as misstate hi& testimony · wfien, I say tli:at h~ ratller contend~ they :m-e> given. here- . · · · · 1mti.I weo argued with: hlln. upoll! the heating, that these- gTeat Wit.h. exeeytlon ' eer. ran ~ whlcllt gained' t:s per ee.tit :n:om l916 manufacturers would! n'Ot be, ta.kJm ovec to I917. a 35 per. f· the things: he· lroys. · Pet toll: 1\tr. BORAllr. 1\'.tr. :eresidi nt:-- Be:s..OO 2000 89 375 so-uri y1el-Q to. the enator from Ihado? Fer 100 pounds: · Mr: REED~ I do tcel bars, E.itt burgh~---·--··· . (.25 Z..'l& L..20 541 254 . J?lat~------·------·--··-__:_·-~-- · 7.00 ~ 75 1.15- 87" " 509 Mr. BORAH. I. presume- that anotfi.et~ bUT will be coming out Beams------~---·---~---- 4:.00-- 2.00 l'.21} 100 233 or the- co.mrn.itt.ee ill a day.- or two elthe:r the House- hill or a bill 2.50 1..55 4.0· . 125 Jie :nails..----~-- . 3".50 tramed up~>n the. oasfs of' the_Rouse. bi.U. sincerely. hope that Tinplate············...-··········-· ..SO. 5 ...75. 3.10 48 . l'l4 :r tho e who. will ha.ve tlle. frru;ning, of' that. bin wnr not leave it so ambiguous_ nn.certain with referenc_e to everyone. else than Mr_ REED ~reading)- noo those dealing, in foods. Theve. is. no reason. why they should not These gairur have· not been: made' ithou ad'Vlmees: in. eosts Commll!f­ include; in plafu an-d 111l1Il.is.takable: language, th(lse di1rerent "Ville coke has advanced near:ty 250. . per. eent in th~ last: year and mangane ovell' 1,100· per c:e11t. Labor ros , the most important item, articles, i:t they ihtend: to con.ttol them;- and it seems to -xne that have advanredl oJl.l_ about 45 per c ntt and on the whole- "the increa e by- a fine or two. tlley c.ould be: include.d'. witl'l jUBt as- much, w::cu;- I In prouo.cti.on t: That 75 to, 85 per cent of th& n.eces~ru.· y food con UIDJ.?tlun of the poorer clas es of this t'illi1 that this va:st network of predn.ction in our country is ru; e6Ulltry- is eomprised' m . even or eig!:lt commo-ditie ; a.ruL tbB.t itds pos­ clo ely km'"'tted and bound together· a:s is the warp and woe! ib.le, with a u1ft.c.i.-e:nt. lltllloo:nt ot. subs' ence and help· to grea.iiT amel­ that i woven into- a garment, and you ean not pull out one iorate the conditions with regaz:d to tho -e- ao.mmrulitles-- threml without · affecting the entire cloth. ] think that shouid be· •J· assistance- and help,... _ Notice how tllat is borne out by the article: I am abon.f to If people wish to eat lobster an.-d there- is· an. unequal distribution ot rend, although it i on a different topie:' · lob t rs, it doe not interest m It i impo ible to fi.,. would mean n.et profits of $600 000.,000. . Sen.wtox .RE1m. That iB a mistake. It is all through the: bill, Mr• . Rrpohlic Iron & Steel produced 1,Zl6,716 tons in 19:1.6. At $40 net IWovell, anination., and let us work these steel plant . -ought. ther not to be. regulations- th l"C' o.f. tho e- prlc .?. M..r. HoovER~ It · ems to me tha-t- is a re uonsibilUy up to you.. gen-- But I read on-- • tlemen to see that no- one makes an, undhe profit. oUL. of. thi • !liE . .KENY01 . 1\Ir. Pre ident, may I interrupt the Senator S 'Imtor REED~ Out o:f anything-? for:- just a mGment1 "Mr. HoevER. Out of anything. Mr. REED.: Ye Sena-tor RF..E~ Then ~ou would advocate th'e control. of the p11kes ot u-on and stecl, copp.er, lead:, and: zi:n.e, a:nd an thing ? 1\lr. I.::El'<;"YO~- T have tried to- .foll.ow the Senator's wllole Mr. HDov1ut... Ii do not. nece sa:r.Qv-- advo ate the control" of pri"Cles. argument, but I have been away some of the· time~ :r ask the do· a.dvocat:e the taking o e11 o.t p.ro..fit:s., which. is, grot>a.bly more Senator if· he n" co;ver. steel1. -~ . 1\.Ir. REED. Exactly; 11nd the Senator- will reme-mber-he and That make . it :perfectly plailt wh.a:t tP.e ptlXpO e· is Iiere. But .r alwa ·. fra.nk wtth each otll.-e~-- I ge en now to read from thi ru:ti.de :fj.·om ·the Bo ton. Tew 1\fr~ KENYON. 'Ve try to be. Bureau. 1..'hls is not an anarchist paper. 1917. '· , CONGRESSIONAL RECORD-SENATE.

1\Ir. GRO~~A. Mr. President-- ing the bill or I am trying to kill the bill, because there are 1\Ir. REEI5. I yield now to the Senator from North Dakota. parts of the bill I am heartily in accord with. There are other .1\Ir. GRO~A. I simply wish to call the attention of the parts of the bill that I think are utterly wrong. That is as fair ------Senator ~ from 1\!is ouri to the fact that 1\Ir. Hoover stated an answer as I can make. before the Committee on Agriculture that there was no need 1\fr. WALSH. Let me inquire of the Senator, then, whether of· conh·olllng manufactures because there was competition in he thinks the bill ought to be amended so as to include the regu­ manufactures. I am quite confident his testimony will be found lation of steel products? to that effect by reading it. , . 1\.Ir. REED. Undoubtedly, or else it ought to be amended so Mr. REED. I have not noticed that part of it. I thank the that there will not be an attempt to dictate the price to the Senator for his contribution. I wish he would get it and farmer, which is plainly involved in the bill. mark it and put it in the RECORD. Mr. WALSH. The Senator does not · answer my question. 1\Ir. GRONNA. I will get it. 1\Ir. REED. Yes; I do. The Senator is trying a trick be 1\Ir. REED. I want to be understood that while I an;1 .com- and I have worked on witnesses a thousand times by putting a peUed to call 1\Ir. Hoover's name, because 1\Ir. Hoover is so thing in a certain way and demanding a sp-ecific answer. I am identified with this matter, there is no spirit of antagonism to just refUEing to bite that particular kind of bait; I have put it Mr. Hoover as a man ·nor to anything which I think can prop- on a hook too often. erly be accomplished by the Government. When i get to the 1\Ir. wALSH. I do not want to enter into a controversy conclusion of my remarks I intend to state to the Senate wh'at with the Senator in regard to the matter. I desire to say tn.at I do think is practical and submit my views for whatever they if the Senator is supporting the idea that steel prices ought are worth. They may not be worth much, and I only ask for to be regulated by· proVisions incorporated in the bill, I - have them candid consideration. no doubt be will find much support in the Chamber; but I do But, coming back again to this question of the profit f steel not-- concerns. Mr. REED. I will say to my very good friend who differs On 12 months' output equal to last year's Lackawanna Steel would from me occasionally, and sometimes agrees with me, which is net over $50,000,000, leaving some $45,000,000 for dividends on its only another way of saying one of us is wrong a part of the $35.096,000 stock. · this . There is no suggestion that such earnings will be achieved this year, time, I think the proposition of regulation always involves - as other factors are to be considered, not the least of which is that idea, that if you regulate one particular article, you are very much tonnage now on books was taken at prices considerably lower.. likely to thereby make it necessary to regulate another article; bethan sold now to prevailing,the Government and that at pricesa substantial substantially percentage lower ofthan output received will but if you take your hands off of all you may not make it so from outside customers. Whether steel prices will be maintained at nece sary to regulate the other articles. I believe there is going current levels any length ·of time, and, if they are. what will be their to come out of the Senate a bill that will undertake to on- effect on labor and other costs, is a question on which even the most if sanguine trade experts would hesitate to venture opinion at present. trol to some extent and in some way food prices ; and · that (Boston News Bureau.) is to be done, then I insist that at the same time and in the 1\Ir. y ARDAMAN. May I ask the Senator what he is reading same bill there shall come the control of these other prime from? necessities. EED F th B t N B f Returning now to the question of steel prices, I was about Mr. R . rom e os on ews ureau o June 16, 1916. to quote from the Iron· Age of March-22, 1916. I will just read Mr. V ARDA.MAN. Can the Senator tell me what is the pur- port of it, except to show that they made an enormous profit? the headlines: Mr. REED. The entire article I have not read; but it shows United States Steel Corporation 1916 report-Gross receipts increased that Bessemer pits have advanced 247 per cent, Bes emer $504,790,190 over 1915, or 67 per cent-Net earnings increased $203, 178,166, or about 156 per cent. billets 375 per cent, steel bars 274 per cent, plates 509 per cent, , and so forth. 1\lr. ·President, I ask leave to insert a table showing the com Mr. VARDAMAN. . . Over what length of time? parative prices of a number of articles of steel, in which the Mr. REED. This is a comparison from 1915 to the present. prices of 1916 arid 1917 ar~ compared; but as you read that It also gives it by years. I wish to call attention to the fact remember that the price of steel in 1916 bas already enjoyed the that the comparison ought t() have · been with ant_iwar prices benefit of enormous advances over the price of 1914, the last · f k' · h th h d a1 year prior to the war. I ask leave to insert this table. mstead o ta rng pr1ces w en ey a ready been enormously The PRESIDING OFFICER. Without objection, 1eave is raised by virtue of the war. In connection with that I call attention to an article in the · gr;~~~~ble referred to is as follows: Iron Age of ,March 22, 1917. -1\fr. WALSH. Mr. President-- A comparison of prices. The PRESIDING OFFICER. Does the Senator- from Mis- [Advances over the previous week in heavy type, declines in italics ; a souri yield to the Senator ..irom Montana? date, one week, one month, and one year previous; for early delivery.] Mr. REED. I do. ' PIG moN. 1\Ir. WALSH. I should li.Ke to inquire of the Senator whether· be would like to have the Senate draw the conclusion from his [Per gross ton.] line of a,rgument that the bill ought not to pass or that it ought to include the regulation of steel prices? Mar. 21, Mar. 14, Feb. 217 Mar. 22, Mr. REED. My proposition is this: I · think the Senator 1917. 1917. 1917. 1916 perhaps was out when I laid the premise of what I am now saying. No.2 ~J Philadelphia ...... $89.00 $36.50 $32.00 {~.()() Mr. WALSH. I think I followed the Senator. · No.2, valley Curnace ...... 37.00 36.00 33.00 18.50 No.2, Southern, Cincinnati ...... 32.90 31.90 27.40 17.90 1\.Ir. REED. I said that if we do regulate the farmer in the No.2, Birmingham, Ala ...... 30.00 29.00 24.50 15.00 manner laid .down in this bill it amounts practically to fixing No.2, furnace, Chicago • ...... 37.00 35.00 33.00 19.00 the price upon the farm products, and if we do that we must Basic, delivered eastern Pennsylvania ... . 80.00 33.50 30.50 19.50 Basic, Valley furnace ....: ...... 32.00 32.00 30.00 18.25 make certain that we· at the same time and in the same bill .Bessemer, Pittsburgh ...... 37.90 36.95 35.95 21.95 regulate the other great necessities, a part of which the farmer, Malleable Bessemer, Chicago 1 ...... 87.00 35.00 33.00 19.50 as well as everybody else, bas to use. Gray forge, Pittsburgh ...... 32.95 32.95 31.95 18.45 l\Ir. WALSH. The Senator has not answered the question. Lake Superior charcoal, Chicago ...... 36.75 36.75 35.75 19.75 I asked him whether he desires us to understand that he is 1 The averaging switching charge for delivery to foundries in the Chicago distric arguing·that the bill ought not to pass at all, or whether. be is s 50 cents per ton. arguing that the bill ought to pass, but it ought to include like­ wise the regulation of steel products? RAILS, BILLETS, ZTC. ~fr. REED. . No, Mr. President, I stated very thoroughly [Per gross ton.] what I am arguing, and the Senator now states an entirely different question which I am not arguing. But I will sa-y to Bessemer rails, heavy, at mill ...... $38.00 $38.00 138.00 128. ()() the Senator and to the Senate, as I have already stated, that Open-hearth rafls~....~eavy, at mill .•••...•. 40.00 40.00 40.00 30.00 Bessemer bille~. rittsJ:?urgb ...... 65.00 65.00 65.00 45.00 I think there are some things in the bill that we can· do and Open-hearth. billets, Pitt.Bl;>urgh ...... 65.00 65.00 65.00 45.00 do with benefit to the country.' There are some things in the Open-hearth, sheet bars, Pittsburgh ...... 65.00 65.00 65.00 45.00 Forging billets, base, Pittsburgh. .• ~ •••••• 00.00 90.00 90.00 65.00 bill that I think if we do will be of great injury to the country. ogen-hearth, billets, Philadelphia ...... 65.00 65.00 70.00 50.00 What those ditferent ·things are I intend to come· to later. So Vlirerods, l'lttsburgh ...... 80.00 80.00 80.00 57.00 I can not answer the Senator's question by saying I am advocaf. 4208 CONGRE-SSIONAL. RECORD-SENATE.-- JuNE 25,_

A comparlsou of znices-Contlnued. · but he is dependent for his life upon the steel instrument he FINISHED WON AND STllllL, ) ' holds in his hand, upon the steel cannon that thun YALCES AFFECTED BY PO SIBLE FOOD DICTA• pric · of iron ore, by the prices of carriage, by the prices of · •rORSHIP. tho e article that are nece sruy in the smelting and manu­ The bill provides that the food dictator shall have complete control over the prod~ctlon, torage, dl trlbution, and prices of food products factme of . steel The prices are affected by coal and so on. and fuel. • Likewi e, 1\Ir. President, you must not forget in dealing with Production and val11c of food in. 1916. - the copper manufacturer that hi price are similarly affected, an

· -- Pt·adueHo'Rri~t 191&. - may do. s~met~inoo that will cripple our counh·y to ueh illl ex­ ~~ttf'i' ------~------POUndS-- 1, 619, 000 OOQ - et? e _____ ..;- __ ~ ------· ------~ --do____ 320 000, 000 tent that ~t will be worse than the loss of a great battle, for it ~lUk ------~------~gallons__ 5, 813, 000, 000 may depnve_ us o.f resources to win many battles. Here is a .o 18------~----~------488,000.0~ telegram which reads: · I:.g,'{S ------~--~------dozen_ _ 1, 519, OfrO, 000 :pptes ______c ______.: ______barrels__ 67, 000, 000 lion, J'Ar.Q::s A. REw, · peach ------bUshel__ 36,00~000 Wa h.i:nutan.,. D. 0.: ears ------do___ 10, 000~ 000 Plums. and pr·unes______do_~ 15, 000. 000 Wheat ba.rves. is about to comme-nce in the Southwest. All regular channels o:f buymg, storing, paying for this wheat is now closed' on. account 1hat no one lutow what the Government is going tO- do in way !:&&&:ggg of controlling th St?-PP11 and price. Instant action should be taken on ~~r~~~======a~====NOTJ:.-.Above art> tbe latest figures available· however not a1l fo1' H. R. 4961. one which. IS now before the House ancli Se-nate. All grain 1916. Value of aboye prod_uction not available. ' dealers ~&millers are simply marking time nQw, not knowing what to. C(}al production in 1916. do. Thu'! mearu; all markets will becom& bare- of flour before- they can be replemsheEinted by chinery will destroy its capacity. Are you not already doing the New York Times whieb has condensed the history of this that? Has it not been' already in part accomplished? war in an amazingly intelligent · m..'l.D.ller, so that the ca ual I am in receipt of telegrams from a number of ·men saying reader can keep brack of all of these events. 1\Iol'eova- it has i:J?.at to.-~ay the wheat market of the United States is utterly the advantage of giving us the news a few day aft;r it is disorgamzed; that nobody dares buy becau e he does not know printed, so that to a large extent fiction or imagination has wJ:ether or how he will be permitted to sell. What will be the been squeezed out of it. Writing in this magazine under the prunary e1Iec:t ot that? Perhaps it may be ver pleasing to headline " Hunger stalks tlu-ougb Europe," at pa~ ~ you ~ll tho e who think only of the consumer and the price he pays find an article treating of. the maladministration of th~ food but mark it and remember it, when you have destroyed the~ regulations. I call attention to this as one of the results of markets or introduced lmcertainty into them, just as certain as food regulation~ and it ought to have a great lesson in it fol.' fate the first man to suffer will be the farmer who has wheat every man who thinks. It is this: Food regulation, in. Germany to sell. It will rea.ch him first, and so you have already an at least, has resulted in feeding the army and in feeding lab01~ element of uncertainty started; and when or how will :.you and in starving everyhouy else. I read just a short paragrapp: affect this regulation? I grant you the Government may go in A . tru ted observer of food eondi tions in G.erma ny reparted to the State Department at. Was hington on March 14 that 20,000,000 people and buy and that may not be disastrous. although it is ; tre­ dire-ctly connected wrth the German Army or Governml.'nt, 20,000.009 mendous power. in tht rural population, and about 8,000,000 wealthy people were w~ll The Government may control the foreign mark:et, and. that fed. but that the rest-about 20,000,000-wer& in a serious plight. may not be disastrous, although it is a tremendous power ; but We are told that thi:s i the cla ·s who can not fight and who I say we ought to be careful or we may do somethin ... here in can not raise food for those who fight-the women and the edu­ obedience to this crusade th-at is being carried on whou'; regard­ ·cators and tbe men who formerly belonged to that class which le of fac~ •. wholly regardless of :figw·es, wholly regardless of we generally c~ the middle class here for the want of a better world conditiOns, wholly regardless of information that lies name. So. in the same magazine for March you will find an before ou1· eyes, and that men will. not look upon and read; we interesting article under the heading " Famine ; The :foe dreaded 4210 CONGRESSIONAL RECORD--SENATE.

by all." ·It speaks of Germany's food shortage-and of the short- everything that other ~ people ·consume. -If you do regulate his age in other places : · food prices and do not protect him on the ·other -side, then you The prices of practically all food commodities were now regulat~d. will find the farmtr will not pla~t; agriculture will not expand; But the system was fundamentaHy unsound, because it p'rlces were· low and, ir.stead of being able to feed the world, we may not-be able supplies were held back, despite tbe threats of beavy penalties; while to feed ourselves. If you undertake to regulate food because if prices were hlgh supplies went anywhere but where they we1·e most needed. In short, tbe G<>vernment did not, or could not, see that under it is a necessity, I repeat, you must regulate steel and iron, for existing P.conomic conditions, even in time of war, the law of supply and they are mr1re -fol'imal necessities even than the fini hed product demand must prevail. • . of food, although not its raw l)loduct, for, as 1 have said, yol.1 Finally, in Dec;-mt>er, 1916, Adolph von Batock.i, . the "food dictator," publicly admitted that the fixing of maximum prices was a fai~ure. can not have modern civilizatic;n without steel and iron; you A'nd let me ·call your, attention to the iact that that iS what could not maintain a single city without steel or iron. Washing­ 1\.fr. Hoover stated in his testimony. So that those who promise ton would starve to death in two weeks' time if it were not for - low prices must remember that l\1r. Hooyer makes no such the steel and iron that bear the products of the farmer to this promise. Continuing the reading: city. New York would be the habitat of rats and bats in a few months' time if it were not for steel and iron, nnd, as I said a ~be attempto; to make foodstuffs accessible to the poorer classes by m~ans of maximum prices have collapsed- moment ago and now repeat, we would go back to the stone age. . He declared_: So, you must regulate steel and iron and then you must regulate that which is produced from steel and iron. You must either Maximum prirE>s without the simultaneous public administration of supplies only keeps the produce away from · the towns and industrial seize or regulate the copper mines ; you must do the same thing centers, leaving it entirely in the hands of the producers or the con- with the coal mrnes, until at last within your all-embracing sumers in the vicimty- . . grasp you have bNught .the mighty activities of the mightiest .. And so forth. land there is on eru·th . l\Ir. Pre. ident, two courses now are open-and with this very I say, whoever interferes ·with this vast machine of produc­ brief statement I shall conclude my long and I know very tion, this machine that is compo ed of the hands of 104,000,000 wearisome address-two courses are open: One is to leave the people, this machine that is guided by the brains of 104,000,000 vast bu iness of the United States in the hands of the people people, this machine that is 3,000 miles long and 1,500 mile - who created it and to undertake to prevent all cornering of the wide, this machine that thinks and acts and talks and works­ market and to prevent the draining of our foopstuffs by Europe. whoever undertakes to interfere with its mighty and majestic As I haYe undertaken to show, we can prevent the hoarding movements and put it under one man's control will bring chaos under laws that already exist, under the decisions · of the Su­ and ruin to our country. Let us proceed with care and with de­ preme Court of the United States, to which I have called atten­ liberation. Let u give thought and attention to these problems, tion, but in addition to that, if the House of Representatives and let us always remember that a worse condition than that would finally pass tbe bill which it once passed and sent here which now confronts us may lie Upon the threshold of .to-mor­ and to which we added the Walsh and Nelson amendments, we row, and lie there, unless statt-smansl'Jp shan· be the order of ~ would have it so arranged that no man in this country would the present hour. dare to undertake to hoard food to an amount whicli would 1\lr. RANSDELL. Mr. Pre ident, we have just listened to a injure the people; but I am willing, in addition t<> that and as very interPsting and instructive addre s by the junior Senator a supplement to it, t8 lodge the power somewhere immediately from Missouri [l\Ir. REED], and if we were not in a state of to take oYer foodstuffs m· other- pl'ime necessities that ar(:\-being w·ar, the greatt.st war the world ha ever seen, I am quite sure hoarded. There should be some kind of judicial investigation that most of the argument by the distinguished and eloquent of this question, and the law should be so framed that it would s-enator 'vould be applicable atl_tl logical in tbe extreme. The be based upon · om· constitutional power of control. I do not existence of war- is- the only reason or ex:cu e for the proposed intend to undertake to go· into the intricacies of that questiou food-control legislation. In normal.time it would be unneces­ at _this time, but I say that I believe that food that has'"'gotten sary and unwise. - Unfortunately we are engaged in the most into public eleyators. and food that has taken such a course in titanic .var recorded in hi tory, and no man can foresee its commerce as to haYe gone into interstate commerce and to be clo e not· just what will be required of the United States. My a pm·t of that commerce can probably be reacheel. _ own impression is that the war, which has now endured for The control of the foreign market-that is, to prevent the three yeru·s, will last at lea. t that much longer, perhaps a g·reat draining of this country by Europe of these prime necessities­ deal longer. The Civil War between the States of this country ! haw already shown exists, because we have given the President lasted oYer four years in spite of the great odds against the the full power to declare an absolute embargo upon the ship­ Southern Confederacy. Our Revolutionary War lasted over ment of any of these necessities whick can be so exercised as to eight yen:rs, and surely in that struggle the forces were far more specify the conditions upon which their shipment will be per­ unequal than the rival armies in the present war. The Napoleonic mitted ; but, in addition to that, the power exists and is now wars, with slight intermis ions, continued for more than 20 being exercised of purchasing all the food for the allied gove·rn­ year , and France was battling against all the other E01·opean ments, and our own GoYernment if need be, through one com­ States. The war between England and the Boers lasted for three mon agency. This in itself will regulate the export price of year , and an the forces of the mighty British Empire were every particle of grain there is in this country or anything else brought to bear against the small Boer Republic before it termi­ we ship abroad, for the price of the surplus sent abroad fixes nated. The wars of Frederick the Great, of Prussia, with sev­ the price at home; at least it will protect us against being eral intermissions..- lasted 38 years. The-war of the Roses in drained of our food supplies. But if it is neces ·ary to extend England continued for 30 years. And so on through history. - that power to give an express sanction of law and authority Wherever there was any kind of equality between warring na­ where it does not now exlst in expres terms, I am willing to tions the struggle lasted for many, many years. · grant it. I am willing to sit_ down with any Senator to help In the present struggle there is no such great disparity as solve that problem. That would leave our busine s to run on; it many seem to think. The combined area of Germany, Austria­ would leave the farmer the incentive of good price , if he could Hungary, Bulgru·ia, ancl Turkey is 1,022,000 square miles, and figure they would come to him in the course of business ; it their united population is 142,000,000. l\Ioreover, the central would, in my opinion, speedily resolve itself, for prices are powers, as their name indicates, are on the center of a ring or already falling and, I think, will continue to fall. ci-rcle from the. interio'r of which they can strike rapidly and At the same time, l\Ir. President, I would enforce the anti­ effectively . first on one side, then on the other. Germany's trust actl'l of this country. I would tell the gentlemen who are preparation for the war is beyond question the most effective '. eng-aged in controlling and manipulatiug prices that they· must eve1: devised; her transportation system is perfect; her muni­ suffer the pains and penalties of prosecution or they mu:st treat tions of war of every kind were created in colossal volume of the American Government and the American people fairly. But, the very be t character; her people had the pirit of patriotism mark you, this plan leaves the management and control of af­ so thoroughly dTilled into them that every man, woman, and fairs and the business of the country in the hands of the men child in the empire knew how to do his or her part, and do it who created the busines . It imply reaches t11e excrescences; well, and was more than willing to do it. The agricultural wealth it reaches the illegal things; it reaches the things that haYe of the central poyrers, upward of a million quare mUes in area, aJ'VflY been condemned JJy the law, either because they were much of which is as fertile as there i on the globe, is very great, manipulations or because they were conspiracies against trade iilld under normal conditions these lands will produce enough or becnuse th<'Y were a fore;::;tn.lling of the market. Th\IS Vi'~ food nnd clothing to supply their own people without any out­ can act within the limits of the Constitution. side assi tance. Practically eYery mineral needed for war pur­ , The other plan, l\lr. President, is one which, if entered. upon, poses is also plentiful in this vast ru·ea. The central powers are I. warn you, will neYer stop. You can not regulate the priceg fully equipped by nature, and the mru·yelous resoru·cefulness of of the foodstuffs produced by the furmer unless you regulate the their people enable them to live at. home independent of the rest ·price of eYerything that the farmer con ume ; and he consumes of the world. That being true, I see no rea on why the war 1_917 •. - . PDNGRESSIONAL ·RECORD-._ SENATE .. . &}lould llQ continue for a very long time. I hope this view is Mr. KELLOGG. · I shollld like to a.sk the Senator if there is- incorrect and pessimistic, but it is the one which I honestly hold, any reason why cotton should not also b-e included? ' aud, _in my judgment; it. is imperative for our people to under• Mr. RANSDELL. I do not know that cotton is one of the · s.tnnd the true situn.tion. absolute necessaries of life in the same sense that food and. fuel . We .are ronfronted with a most selious problem .that requires are necessaries. We can get along for a good while by weru·lng us to mars_hal -every resource ~d energy of the Nation; we must our old clothes, but we would star-ve in u :very few 'days· if we not act half-heartedly ; we must not gag at trifles; we must got out of food~ It is true----- fight the devil with fire; and, as Germany has used every re­ l\fr. GALLINGER. Mr. President-- source -of her people for the past 40 years in preparation for thl Air. RANSDELL. Plea e let me answer the ·Senator ' from war, and is now handling them not with divided 'COunctls and Minnesota, and then I will be delighted to yield to the Senu.tol". di united effort but as orre m:an under the leadership of Kaise1· It is true that cotton is to a ve-r-y great extent a food protruct Wilhelm. . so, if -we expect victory, we must eoncimtrate our We use the oil ft·om the cotton seed, Md ·I am very glad we do. l forces and put forth a thoroughly united effort under our great romember the time when we did not use ·cotton seed at all, but Pre ident, Woodrow \VH on. . , . now it constitutes n very important food pr·oduct, and I will The-powers whicb the pending bill propo e _to give the Presl· sny that to the extent that it is food it is included lmder tb~ dent are very great, and impose duties upon him which, I 1l.Dl terms of this blli, Just as other things are. If the Pt·e iuent sure, be }Vould gladly avoid if he could; but tt is necessary, in finds it necessary and wishes to treat it as food, he can place tpe present emergency, for some one to exercise these po~rs, a tninlnmm guaranty · on cotton. and who is . there to whom we can look except our President. Mr. GALLINGER. 1\Ir. President~- ~be Constitution mnk~s him our leader in peace and the General The PRESIDING OFFICER. Does the Senato1· from Loui i· in Chief of our Armies and Navies; he is the· de facto and de ana yield to the Senator from New Hampshire? jqre head of this Republic with its 100,000,000 soUls. No l\Ir. RANSDELL. I do. . . President who has occupied the_ White House, from tbe days l\1r. GALLINGER. This being a war measure, the Senator of Washington to this moment, has ever willfully· misused the recognizes the fact that cotton is ab olutely. essential to the powers. of his gre;1t office. Thank God, we have always been manufacture o;f munitions of war? able to tru t our Presidents. IIIll'Ilense powers were given Mr. RANSDELL. Yes, sir; I do. Lincoln during the Civil War and he did not abus them. We Mr. GALLINGER. And for that reason it is as necessary as can safely tntrust whatever is necessary to President Wilson any other article mentioned in the blll. at this moment with the absolute assurance that he will do Mr. RANSDELL. Perhaps lt -should be added, and if the what is expected of him faithfully Vand wisely, and I for -one Sen.a.tor wisbe to introduce an amendment to that effect I do will gladly place on his broad should~ and in his capable hands not know' but that I will consider it favorably. I will ay to the·very important authority proposed in this bilL the Senator that I am a grower of cotton myself and am very 1\lr. KELLOGG. l\1r. Pr~dent-- much interested in it; my State is v-ery much interested in it~ The PRESIDING OFFICER (Ur. WADSWORTH in the ehalr). but I had the ide~ and still have it, that under the general terms Does the Senator from Louisiana yield to the Senator from 1\fin­ of tbe bill, so far as it is treated as food, the President could nesota? purchase it -if he deemed it necessary so to do. 1\Ir. RANSDELL. I will be glad to yield. 1\!r. CUMMINS. Mr. President-- Mr. KELLOGG. Will the Senator please point out the statute . The PRESIDING OFFICER. Doos the Senator from LoUisi· by which President Lincoln was gi'\ten power to-buy all the crops a.Dfl ~ld to the Senator from Iowa? . of the country and store and sell them? · Mr. RANSDELL. I shall be delighted to yield. Mr. RANSDELL: l do not know that that power was ever l\Ir. CUMMINS. Cotton is not brought within the terms of given to President Lincoln: the bill, as I read it, priOr to section l2; but when- the President llr. KELLOGG. . Or the power to fix the price of farm prod- is given the power to fix a minimllm price for commodities he ucts? · . is given the authority to fix a minimum price -for cotton. Why l\Ir. RANSDELL. I _do not reeall that such· powers as that should the President be given the authority to fix a minimum were given to President Lincoln. The situation was very, Vel'Y price for cotton if cotton is.. not to bear some of the burdens of different, I will ay~ to the Senator. There was no necessity for the bill as well? such power as that to, be given to him at that time; but I Mr.· RANSDELL. I do not know that I unde.t·stand the point believe there is such a neces ity now. We are in a great war, which the Se-nator makes. as I hav-e just said, and we find it absolutely necessary to help 1\Ir. CUl\11\IINS. Tbe Senator is familiar with section 12? ' our, allies, many of whom are starving. The Senator knows 1\fr. RANSDELL. I certainly am. the ituatlon is not at all comparable to what it.was in the war Mr. cmDIINS. And he agrees With me, I am sure, that between the Northern and Southern States:- cotton is within the provisions of that section. Mr. KELLOGG. But I should like to ask the Senator if he Mr. RANSDELL. It certainly is a nonperishable agricul· thinks th-e President should hav-e the power to fix the prices of tural product, and that is what is included under the terms of and to buy farm products? secQ.on 12. Mr. RANSDELL. I do not think that the bill gives any such Mr. CUlli'\fiNS. And the Senator recognizes that section 12 power, I will say to the Senator. is intend-ed~ · anyhow, by those who .favor the bill, to help the .Mr. KELLOGG. Will the Senator refer to section 9, which producers of agricultural products by guaranteeing to them a authorizes the Pre ident to purchn e any such n-ec~ssaries and minimum price for a period of three years? to ell them? ·Mr. RANSDELL. That is intended to apply to food pt·oducts, l\Ir. RANSDELL. Yes; he may purchase some neces aries as I have read the bill and as I have understood it. · If the and sell th~.m under that section. President wishes .to treat cott(ln as a food product-and, to a l\fr. KELLOGG. All necessaries? great extent, as .I have said, it is-he could extend it to cotton Mr. RANSDELL. But it does not mean that he hall buy all al 0. of them and ell all of them. ' :Mr. CUMMINS. Section 12 is not confined to food products. l\Ir. KELLOGG. Under , ection 9, where is the limitation, I Any agricultural product--cotton, hemp, anything of that • ort­ should like to ask the Senator? would fall within the provisions of se~tion 12. Mr. RAJ.~ DELL. My understanding of the bill is not at all 1\Ir. RANSDELL. I will say to the Senator, in regard to that suggested by the Senator from Minnesota. I should like that, that we must take the bill as a whole. Section 1 defines for the Senator to point out to me the clause which provides neces!"nries, and the whole spirit and purpose of this bill is the that the Pre..<::ident may exercise such power, for I do not so treatment of necessaries. There are sections here which taken under tand the bill. by then1..~Ives might be misuntlerstoodF but ,when you treat tlfe Mr. KELLOGG. It is section 9 of the Senate bill which we bill as a whole I think it is fair to ay that it relates to the have been considering and section 10 of the Hou e bill. As I necessnries mentioned in section 1. read it.· there is no limibltion upon the· power to purchase fru·m 1\lr. CUMMINS. But, Mr. President, that is the very questiol.ll products and all products called neces aries. Under that, of thnf has bothered .m-e somewhat. Section 1 names foods, feeds, cour. e, and under the licensing provision. the price may be anrt fnE'l ' and the articles required for their pro

' 4212 c -oNGRESSIONAL .RECORD-SENATE.: Ju ~E 25.

embrace cotton, or any other agricultural product that .cloes' not 'it yields large amoimts of cottonseed oil, a vast percentage o furnish food, as well as food. Now, I have not been able· to which ·is used in lard products, oleomargarine, eclible oil , and uQd.erstand· why the restrictive portions of tbe bill exclude. cot­ so forth, while the cottonseed meal is one of the be t uf all ton and the portion of the bill which is intended to encourage known feeds for cattle. When it is recalled that there are production should include cotton. · · ·. 1,000 pounds of seed for every 500--pound bale of cotton, it· will '. 1\Ir. RANSDELL. I . will say to the Senator that .I had noth­ be seen-that a 14,000,000-bale cro~about the average-yielcls ing to do with framing the bill, but that it never entered my 7,000,000 tons of cotton seed. mind as a cotton grower that cotton was going tu be included . Mr. CUMMINS. 1\Ir. President, may I suggest to the ·Senator in these items which would be added if the Pn.sident sees fit to from Louisiana that, while it is b·ue, as my colleague .say , that resort to the minimum price. So far as I am concerned, as one the amendment he named was voted down in the Housw the Representative of the cotton-growing section of the country, I House Pill is quite different in that respect from the bill we should be entirely willing for the words in section 1 to be repro-. are now considering. The-House bill provides- duced and inserted in section 12, to relieve any fear the Senator That whenever the President shall find that an emergency exist~ may have, for I assure the Senator it never_has been in my ·requiring stimulation of production,· and that it is essential that the mind that cotton should be included, and I uo not care to have producers of any nonperishable agricultural food or feed products pro­ it included. I am perfectly- sincere in saying that I understood duced within the · United State13 shall have the benefits of. the guar- · ante~ · tlle purpose.s of this bill to. be to increase the food and fuel sup­ plies of the American people, and normally we do not consider. And so forth.' The House text would limit the agricUltural cotton as food, although to a very great extent it is an impor­ products to re~eive the benefit of the section to food and feed tant food commodity. There are a great many million tons of products, whereas the Senate bill, which we now have before food coming ' every year out of the southern cotton crop. · The us, bas no surh qualification. crop of two years ago was 16,000,000 bales. That meant s.ooo,- Mr. KELLOGG. 1\Ir. President-·- .. ; 000 tons of seed, out of,which came an enormous amount of oil The PRESIDING OFFICER. . Does the Senator from Louisi- and cottonseed meal. If t11e Senator ate some of the ·delicious ana yield to the Sena,to! from l\lill.nesota? , · bread mnde a few days ago _by mixing cottoLseed .meal with Mr. RANSDELL. , I do. flour anu presented by Senator SHEPPABD of Texas be is bound Mr. KELLOGG. What I desire to ask the Senator is whether to admit that it is a very good article of human food, as well as he would be willing to include cotton in all the provisions ·n a most excellent article for feeding cattle. 'rhere is no better the bill, not whether he -would be willing to exclude it 1'1·6111 food known for cattle than cottonseed meal; and so ·the seed section 12. I, for one, do not see why clothing is not as im­ from the cotton constitutes a very important article of human portant as fuel, and I should like to know if t!le Senator is wil_l­ food, though it never entered my mind, as I say, tl1at it was ing to include cotton within all the provisions of the bill and meant to be included here; and if it will help_the Senator to not to exclude it from section 12. support thi:? . very impQrtant bill I, for one, . would be perfectly It seems to me that if we are going to include wheat and other willing to have a clause of that kind inserted. farm products and .fuel we should include clothing, or cotton, Mr. CUl\Il\HNS. l\lr. Pre~ident, I · hope. the Senator ·from which goes to make a good deal of the clothing. I understand Louisiana will not · tbii;lk · that I have ·selected cotton in an that the cotton crop is short and the prices are very high and invidious way. . are liable to go higher. · , . , 1 . Mr. RANSDELL. Ob, no; I am sure the Senator did not . Now, another thing. I do not see.any reason why iron, steeL mean anything of that kind. . . and fai·m machinery. and petroleum and its products should not · l\Ir. CU.l\.DHNS. I hope to be able to support the bill when it be included with cotton. I s~ould like to know from th-e Senator ~ is amended as I think it will be. . I am in favor of including in if he .is willing to include all of those and include cotton in the bill a gl-eat many things that are not now in it. . But it has thisbill? . b·~n mysterious to me from the beginning .why every provision 1\Ir. RAl~SDELL. Those are matte1:s which I understahd are in the bill that is· intended, apparently, to secure for the con­ going to be discussed v.ery fully by the Agricultural Comm~ttee sumer a low price for the commodity-that-is, every provision when the House ·. bill is referred to it. It has already. been .re­ th-at is inten.ded to eliminate all 5peculation between the pro- ferred ; and doubtless after this_bill has been dtscl}~S~ and~ all ,ducer and the consumer-excludes cotton as well as iron and amendments introduced we will have that. one, amopg_others,· steel and ore and a great many other things that are just as referred to us and will give ~t .very, very careful consideration. necessary as food for the conduct of our affairs; but when we I can not say offhand that I am willing to include all of. those. come to a ~rovision that is intended at least to insure to the things. . I do not wish to see this bill loaded down ·too much. I _. producer a fair price for the things be produces, cotton and any am afraid that if we .inclucle too .many things in it we will other agricultural pr_oduct not fit for food comes in and receives d~stroy it. It is a good bill, in the main, in my ju(lgmeut, the benefit of the guarantee. I have been utterly unable to un­ but if you are going to attempt to include everything it wi.l)..Pel:­ derstand the discrimination between 'the earlier parts of the haps becqme cumbersome, top-heavy, and fall qf its own weight. bill .and section 12. : _ . . I rather _thiQ.k if .we can confine., our efforts to foocl apd fuel-:-::­ Mr. RANSDELL. I assure the Senator that I do not know the two purposes for which th~ bill 'Yas framed-we ·wi)l, have: tbat any discrimination was intended. Again,.! repeat, that as gone a long way towarp reij.eving.the present very critical situ­ far as cotton is concerned I am.perfectly willing that the clause ation. There is no doubt but ~at. a g1·eat many things can be cQn.tained in section 1, referring to necessaries, should be in- said in favor of including cotton and wool and iron a.IJ.d . ~teel serted in section 12. . . : and the various products thereof, and petroleum-and, by the , As the Senator says, there are many other agricultural. com­ way, petroleum seems to be included in the wo.rd "fuel," and I modities that might be included in addition to cotton. I take should say that gasoline is included in the word "fuel,". b.ut .if it that wool is an agricultural product, and a very necessary not included I rather think there should ·be an amendment· to one. It could be included -in section 12. We could stimulate incfude the \arious kinds of fuel in addition to coal. As I the price of wool by fixing a minimum on it, if it were thought understand it, all kinds of fuel, including petroleum and gasqline, ~est to clo so, although under no circumstances could wool be are intenclecl to be included in the terms of the bill. b·eated.as a.n article of food except in so far as relates to the 1\Ir. Pre ident; as I was saying, the purpo e. of thi bill is to sheep 1 which produce the wool, which are a most important secure an adequate supply of· fooC! , feeds, . and fuels, and tQ artic1e of :human food. · facilitate their prompt and equitable dish·ibution at rea. onable · ·Mr. KENYON. 1\lr. President-- prices throughoQt the Union during the pe1'iod of the war and • . Mr. RANSDELL. · t yield to the Senator from Iowa. the national emergency re ulting therefrom. 1\lr. KENYON. I was going to say, with reference to this 1\Ir. TOWNSEND. 1\Ir. Presiuent-- " very point, that it could be cured by ·a very simple amendment, The PRESIDING OFFICER. .Does the Sen~tor from Louisi­ namely, the use of the words "necessaries, as defined· in this ana vield to the Senator from Michigan? act," or similar words. That amendment, however, was offered M;. RANSDELL. I do. in the House, and · was · voted, down, to my surprise. So that Mr. TOWNSEND. Before the Senator proceeds to a further difficulty could be cured here, as. the Senator says, by an amend­ discussion, Isboul ·best for us to get together things of that kind-not the food .value of it. I wish. to repeat, and see whetbe1· or not we w..ould agree to the changes that had • however, that the food value of cotton seed is very great, for been made iQ. the bill by the House, and to see whether or not

- .1917- - CONGRESS! ON AL-RECORD-SENATE~ -4213 ·

Wd wo-uld ~-dvi:se the, substitution··of that bill for this-not. that that is the gist of it; that is the nurpose of it. Certainly no anything in the world ·has been .agreed to, but that that bill man in the Senate and no man in the United States can object I>t:obably will be discus ed in committ-ee.· . . to increasing the supply of the food and fuel of this country and . ·1\Ir . .TOWNSEND. : And th.e probabilities are .that no action reducing their price to the consumers of this country. · It is will be takE-n -upon the pending b_ill in the Senate prior to the not intended to interfere any more than is absolutely necessary action of·:tbe : committee on the other bill, which may be re- with the ordinary laws of supply and demand, and with the ported as a substitute? .: usual and customary agencies for carrying ·on business, but : 1\fr. tRANSDELL. ; I ani not. authorized to ·speak for the proper encouragement and assistance will be given to increase Agricultural. Committee, but I will· state that is my judgment. the supply wherever the emergency seems to warrant it, and I think, however, that we ought to go on with this debate and preventive measures will be taken to stop unlawful practices straighten out the tangled hanks in this bill just as thoroughly. tending to increase the cost of necessaries. I am heartily in as possible. That is my personal opinion about it. I do not favor of the general idea of the bill and shall do my utmost know, of course, what ·the committee will do. to secure its passage, though I think it should be amended in 1\Ir. TQWNSEND. I do not Wish to. discourage any legitimate some particulars. <.lis<.'ussion of matters that come up in both bills; but it has been The imperative necessity immediately confronting us is the an open secret here, I think, for some time that no action would abnormally high price of all kinds- of food and fuel. What can be likely to be taken upon the bill that has bee·n before us so be done to rel-ieve the situation? How can we cheapen the long until the House bill,- with its amendments, had been pre- price of these necessaries so es~ential to human. existence? sentecl to us. - It had occurred to me that it might be well to- The problem is difficult; but I believe it can be very materially discuss at this time, at least, the provisions of the House bill, assisted, if' not completely soh·ed, by the passage of this bill. or the changes that have been made in it, if we wish to make I shall not attempt to discuss every feature of it, but to call any headway at all with the legislation. attention to two or three very important particulars. Mr. RANSDELL. 'That might be a good idea. Mr. SMITH of Michigan. 1\!r. President-- 11-fr. REED. 1\!r. President, may I interject a remark? The PRESIDING OFFICER. Does the Senator from Louis- __ The .PRESIDING OFFICER. Does the Senator from Louisi- lana yield to the Senator from Michigan? ana yield to the Senator from Missouri? . Mr. RANSDELL. I do. Mr. RA~SDELL. I shall be delighted to yield. l\lr: ~ITTH of Michigan. I should like to ask the Senato1· Mr. REED. It seems to me to be a very remarkable method whether he believes in a minimum price to be fixed by law? of procedure to be debating this bill in the Senate and for the Mr. RANSDELL. I do, most

and chen}1en the price of foods and fuels of ~very kind and 1a better product than wheat for human food. It gives more sort so that the high cost of living may be materially reduced. nutriment to the human being than wheat, according to the Now, we can · talk ·about the bill as much as we please anct report of the Department of Agriculture. Now, I am a raiser discuss the .. various features· of -it as much· as we please, but - :o·f corn myself. That is my business-raising corn and cottoa. CO~GRESSIONAL ~ RECOR~SENATN; JuNE 25r.

If.the Departm~nt of. Agriculture finds a s~all q_uantity of corn the Senator think there is any likelihood of a big crop selling in"this country this fall-~mall in proportion· b~ .the sm1;1.llness oL at a greatly reduced price in the coming year? ·"" the wheat crop, and we all know th~:~.t is going to be small~ Mr. RANSDELL. · I can not say I think that it is going to. nnd if, after a thorough stu-dy of the sv.bject, it is deteyr;ni..D:ed to: sell at any gteatly ~ reduced price, but I will also say· that a fix a ·minimum of $1" per bushel on corn. I will say to the Senator great many people have an idea that the war ls going to end in that as one. corn growe,t· L would plant, n good deal more than I two or· $ee months, just as the people down in my .portion of have planted before; and I cap not conceive, if they are going_ the country. thought the War between the States was going to: to fix a minimum at all, that they would fix les.s than $1 per bushel end in a few· months and went to work very rapidly to get a on corn. I can not conceive, if they are going to. fix a mini.Inum. chance to shoot at the Yankees, as they called . the boys up. en wheat, with the present light J:>efore us, that that minimum North, a.nd the same ·feeling e.xist'ed up there, and they were in would be le than $2 per bushel. a big hurry to get South to shoot at tile .rebs. Applying that 1\Ir. SlliTH o:f Michigan. The minimum. of course, need not argument to the farmer all over the co~try. he will say I do neces arily be remunerative or ~rofitable. The _minimum fixes not dare to plant au abnormal quantity of wheat or corn. If I the place at which the price "starts and does not in any manner do, r will glut the.market and. get. nothing .for these. products, control the po-int to which the price may go. and he will go very slowly about it. ' 1\Ir. RANSDELL. That is .very true.; but I will say to the I know how it is myself. I am a farmer and I know the Senator the. ·purpose of ~ minimum is to so increase the sup­ feeling of farmers. But if a minimum price be guaranteed to ply, to so encourage the. farmer to grow larger quant;ities, that him for three years, let us see how it will apply;- Y-ou can not the supply will become very much larger. If we get a larger stop your agriculture and:.. change it in a moment. If you are supply, I take it, without any interference what oever with accustomed to plant one thing you· can not change it to another Congx·es for food control or anybody else under the ordinary just for. one year very-handily. But if you have the minimum raw of supply and demand, the price to the consumer will go guaranteed to you on wheat, let us say for: illustration, for the down. · next three years· regardless of-whether the war ends ot· not, and I wish to ask the Senator if he ever in his life-and I take it if that guaranteed minimum price be one which will remunerate he has been somewhat. of a farmer-knew a big crop. to sell' for you nine years out of ten, which will give you a handsome a high price, and if he has known it to fail that a small crop does profit, then you \vill be willing to incr·ease very greatly your ,Prorluce a very big price? . acreage in wheat. l\Ir. SMITH of Michigan. I have known big crops to ·sen for l\Ir. "REED. Very well; I understand the Senator's thought. lligh prices. Of course supply and demand are basic p~inci­ Now, if he \viii permit me a further question, I understood the ple '. Big crops alway~ sell for a high price when the industrial Senator to say that he thinks the minimum price of corn conditions of "the country are favorable, when peop~e are em­ ought to be a dollar a bushel. · ployed in <.liver ified vocations. If everyone raised wheat ~ere Mr. RANSDELL. I did not say it ought- to be. I said if I wonld be no market. The question of diversified employment were offered a €lollar it would be very attractive to me. I do enters very largely into the demand and the p1ice. · not know that it ought to be put at that. Now, I want to get the Senator's vieWJ)oint. I think, of ·Mr. REED. And $2 for wheat. com"Se, he does -me great honor when he says I have had agri­ Mr. RANSDELL. I said if those figures were placed on it cultural experience. I had experience when about 12 years they would be attractive to tne as a farmet·. · · olrought a little upward of $59,000,000 more than the duced ca n levy a tax upon imports so as to keep the prices up, big crop. I will say that after having planted cotton, for so that the Gover nment will not suffer any loss by reason of 25 year it i my universal experience whenever we have had it guaranty ? a big crop of cotton in :he South 'Ye got a small price for it, 1\fr. RANSDELL. I am. and whenever we had a small cr·op of cotton we got a big price 1\Ir. REED. . Kow, r want to ask the Senator if this price is for it, and many times the aggregate of the small cr·op far increased to the farmer for three years under this guaranteed exceeded the aggr'egate selling value of the big crop: plan, and thut in order to maintain that high pr.~ce, so th~t the l\Ir. REED rose. Government can not lose anything,' all importation is to be cut lllr. RANSDELL. I. yield to the Senator from 1\lissouri. off fhrough· ari import tariff, is it not perfectly manifest, then, , Mr. REED. I de ire to get the Senator's idea. that during that three years the consumer is going to be com~ :\I r. RANSDELL. Provided I can give the Senator orne idea. pelled to pay a higher price or the Government to sell at a loss?, 1\lr. REED. The Senator is largely correct in his statement Mr. RANSDELL. Not at all. Let us take the price of wheat. 1 that many time a big crop does not net the farmer as much as Suppose you make ~2 per busliel tlie minimum price on wheat, a ::;mall crop. becau e there is an ove:r:produ~tion; but consider­ and there is a very large production· of it It goes wJtbout say-. ing tllat question with reference to the pre ent situation, with ing that with this big production, filling up all the warehouses, something like 20,000,000 men in the ' military camps of the all the st6rage elevators of the country, if wheat is guaranteed : wor.l

/ • 19117.- r.;~. CONGRESSION A'L RECORD-SENATE. 4215-

mous production that thE' wheat would sell in open-ina·t~ket for r used it ·as my individual idea that -if a mmtmum of . 2 less than $2. In that event the Go.vernmerit wotild 'be comi>elled were fixed it would be inost attractive. If a minimum of $1 to .make up the difference between the market price and the on corn were fixed it would certainly appeal strongly to me. price it bad guaranteed to the farmer. · Before' anything can be.done in the way of fixing a minimum, as Mr. SMITH of Michigan. Jt1r. President-- r said before, the very best possible evidence is going to l>e , Mr. RANSDELL. Pardon me until I answer the question. obtained from every agricultural department in this country But the consumer in that event would be absolutely sure that and from our United States Department of Agriculture and he would not pay any moi.'e than $2 a bushel for his wheat. It from the people engaged in any way in the handling, milling, seems to me that the consumers 'Yho have been paying as much wholesaling, or retailing of wheat, and they may not fix such as $15 ·and $16 a barrel for flour,' -as tney have in the last few a minimum as I have suggested. · months, would be glad indeed to have a · gri.aranty that they Mr. RE~D. Now, Mr. Pr.esident, will the Senator pardou me would never have to pay more than $9.50 to· $10 per barrel for further_? · their flour, which is the price that would be charged them if Mr. RAl~SDELL. Yes; r am glad to have the Senator in- their w.hent was guaranteed them at $2 a busheL · terrupt me. _ Mr. REED.· While the consumer might ·be· glad to have a 1\Ir. REED. We do not f$et anywhere it seems to me, when we guaranty that he would not have to pay the price of the last just go off and generally discuss the 'var. I am trying to get two months, would ·he be glad to have a guaranty ·that he the Senator, who is a perfectly candid man-- would be compellea to pay· higher prices for 12 months out of 1\fr. RANSDELL. I thank you. . 14? Would he be ·especially delighted -if instead of getting Mr. REED. To inake a plain ·admission that I think ought to flour at $5,50, as he did a year ago with $2 wheat, would he be be made in the interest of common honesty to the Americau especially delighted that he would have t9 pay $10 all the year· people; and that is that any law which .raises the price of cereals. through, whereas in the last 14 months, as I showed, he got his to the farmer will necessarily raise the price of food produGts wheat for much less than that during nearly the whole of the to the consumer, and that if a guaranteed price to the farmer time? Does not the-Senator think there is anothet' side to that is high enough to encourage him to raise unusually large crop , question? - that guaranteed price must be something higher than the farmer Mr. SMITH of. Michigan rose. at least believes he would get without the guar~nty. Other­ Mr. RANSDELL. Does the Senator from Michigan wish to wise there would be no stimulus w·hatever, and if,it be higher ask me a question before I answer? than he wouid otherwise get, then that additional price must be Mr. SMITH of Michigan. I should like to have the Senator canied. along to the consumer. If we guarantee. these prices answer both questions at the same time. · · to the farmer for three years at a point higher than be would­

Mr. RANSDELL. All right, I will yield. otherwise get1 then for three years the consumer. must pay a Mr. Sl\liTH of Michigan. Suppose a dilemma .such as that. bigger price thai) be _would otherwise pay. - . described by the Senator should actually arise and the Govern­ Mr. RANSDELL. That does pot follow at all. You might ment was buying wheat at one price and selling it at another; have a very sma~ crop, and the result might be the same out­ with whom is thE> Government concerned, the consUIIier or . the rageous condition wllicb you have uow for a small crop, whereas producer? We are dealing with a very large question, and if if the farm~r had been given a guaranty and had raUjed a _big the Government is to buy this wheat at·$2 as the minimum, I crop be would · never charge nor would the consumer pay any suppose in ordet· to furnish food cheaply it must buy all that is more than on the basis of the guaranteed minimum. ' · offered .nt $2. In other words, the Government must take the ·1\Ir. ·REED. 1\lr. President, if the guaranteed minimum put entire crop. If it goes above $2 in the open market, tlre Gov­ the price up to the farmer, and that is _what I am trying to .get ernment will not subject its citizens to competition and the at, dOes it not necessarily put the price up on the flour, the nece sity of paying -a still higher price for its food. products product of the farmer? If it actually does advance the price to than before. · I see.some difficulties about applying the practical the farmer, does it not necessarily advance all that which is test. I . ~vould like to find some. basis that is equitable to the produced from the fa1;mer's product? people and just to the Government.· 1\Ir. RANSDELL. From the farmers' profits? Mt·, RAl~SDELL. In response to the questions of the Sena-. 1\Ir.. REED. If it advances the price of wheat -to tne farmer, tor I will try to answer as well as I can. The Government, I does it not nece sarily advance the prke of'flour·? . take it, represents all the people .and it should try to do its best 1\fr. RANSDELL. Of course the price of flour has got to go by all of them. We all ::tgree on that. The farmers of the coun­ up if the price of wheat goes up. try constitute a very large per~entage of t}1e people, something Mr. REED. Now-- over 50 per cent.. They consume. ;1 very large percentage them­ 1\lr. RANSDELL. But it does not follow, and there -is the ~elYes of the crops that they raise, be it wheat, corn, meats, or fallacy in the Senator's argument-it does not follo'Y that (he atly other crop. price of wheat i'3 going up. We did not have any guaranty last -The purpose of the Government in this legislation is to try to ye~r; we had a very small crop last .year, and the American do the very best po sible not · only for our own people in this people are paying an enormous ·price f~r t:Beir fl_our. great emergency but for our suffering, starving allies abr~md. 1\lr. REED. Mr. Pr'esident-- The question, it seems to me, or the questions of the two Sena­ . 1\Ir. RANSDELL. Just wait, please, until I answer the ques­ t01.'S overlook the situation of the war in Europe. Their ques­ tion. Suppose that we give this guaranty and get a very big tions completely overlook the fact that we will .bave perhaps crop-all the bins are full of wheat. I presume the Senator ad­ 2,000,000 of ow· men withdrawn from profitable endeavor in mits that the consumer in that event would not pay any mo1~ this country and engaged irr an awful war. than on the basis of that guaranty. You could not pay any There may be a great many more than that before we are more than that, surely, bec~use there will be such a big supply; through with it, for, as I say, it seems to me that the·re is every there will be no inducement to pay any more than that price. · reason to believe that the war is going to last for years, perhaps 1\lr. REED. Mr. President, if the Senator will pardon me, for an ind~nite number of years, and there is no use for us to the bill provides that the price is to be fixed before seed~ng. In­ try to make provision for a few months or for one year. The deed, it provides for a three-year guaranty. wise thing for us to do, Senators, is to make provision for a long Mr. RAL~SDELL. That -is right. time in the future, and if the Great Father abov:e permitl:i this Mr. REED. I do not think the Senator quite catches my ques­ war to come to a close sooner, if the ordinary laws of supply tion. I am assuming that the guaranteed price is to be of some and demand can be reestablished in this country before the benefit to the farmer. lapse of three years, if we can go to making crops cheaper, even 1\lr. RANSDELL. Certainly it will not produce any increaseu with all this labor taken from every productive indush·y, sooner wheat if it is not of some benefit to the farmer. than three years, of course, it would be a good thing. But, on 1\Ir. REED. If it is of benefit to the farmer it must be because the other hand, if the war continues there is not the slightest it increa es the farmer's price. danger, in my judgment, and not the slightest danger in the 1\Ir. RANSDELL. That is right. judgment of a great many other people, that we are going to l\Ir. REED. · If it has increased the farmer's price, will it not have such an abnormal production of any kind of food as to increase the miller's price? · warrant us in expecting the low prices which the Senator from 1\Ir. RANSDELL. In the same proportion. :Mis ouri alludes to. Of course, people would be glad to think 1\Ir. REED. If it bas increased the farmer's price and the that they could buy their flour for $5.50 or $6 per barrel, and if miller's price, will it not increase the price the consumet• has to you could persuade them that they could buy it for $5.50 01~ $6 pay, or is there some remarkable _hiatus which occurs there? ·. per barrel they would not like the idea of paying as much as $10 l\Ir. RANSDELL. Undoubtedly. I have answered your ques­ for it under this guaranty. • tion on that point several times. There is no difference between Now, mind, I did not say that the guaranty of $2 a bushel us on it. . The difference is this: If we do not have the guar­ was going to be niade. I simply used $2 as an illustration. anty, I repeat we may have another very small crop and be in the ,· •. 4216 CO~GR:JtSSI01 ... AL RECORn-:-:-SEJ.\f ATE~ JUNE 251

unfortunate po ition we are in now~ of beinoo·pTactieally unable, 1\Ir. VARDAMAN. 1\lr_ P.re ident, I take it that the Senator tQ help our distressed allies iu Europe. W a.re- not going· t from Louisianlll has given. mature thought to this question and · fight this war Pl'operl r unless we end; eimrmous: quantities: o:L also- exhaustive ~vestigation. Can he tell me the average price · food to Europe as well! u meo and the Ol'uiuary munitions: and for which the farmer has sold! his wheat. and his. 'corn ll.nd his guns to fight witl.l. We have got. to end foood by- the consumers of the country · Mississippi for· hiS! very valuable suggestions. They are a real that the proposition. now is, instead 0-f giving them food for less contribution to my remarks. In fixing the guaranteed price, I than they have been paying; to make them. pay more. assume that the agencies called upon t() d() so--=whtch is a guess 1\fr. ~SDELL. Will the Senator please tell me how he on the future--would naturally study the past. If I were on& is going to give food to1· less und€;r his plan. of those to fix a price upon foodstu.ffs of any kind, I should' 1\lr. nEED. I have not proposed it.. certainly. make a thorough investigation into th& agricultu-ral · 1\lr. RANSDELL. But you are stating that is what you want conditions, not only of the past 10 years but of the past 20 to do. or 30 years. I would examin&-everything connected witb them. Mr. REED. No~ If r found wages were higher now than they have been in l\fr. RANSDELL. You just said so: normal times I would take that into consideration; if I fourid Mr. REED. The Senator did not hear me. that fertilizers were higher oow than they have been in the Mr. RANSDELL. Perhaps I have not good ears but that is- past I would take that into consideration. I would try to take what I understood. ' into consideration every single, solitary faet01r that could be-- 1\Ir. REED. 1 am talking about a foolish proposition that brought out. every fact that eould b6' advaneed, and, with the has been argued here t

1917. COi'GRESSIONAL RECORD--SENATE.

give very large CI'0ps ot both next year. My own bttsines is emergency work fol' the Government in a crucial time like rai ·ing cotton and corn, and if I knew in advance that not less this big ~alaries · shottld be paid anyone, but I believe that the_ than . 1 per bu bel would be paid for corn I would certainly poor man is just as much entitled to serve his Government as increase my acreage in that grain materially. The same would . the one of wealth ; and if .a man is engaged and allowed to be true, I am sure, as to all growe~·s of wheat, and many per­ work without· any compensation it would be found in practice that sons who are not now raising wl1eat in any quantities would only men of means could perform such service at the Nations plant a greater acreage. • Capital. The result would be class feeling, and. the idea would If there be a guaranty of, say $2 per bushel for wheat and speedily gain ground that none but rich men could serre their tbe,· yield is quite large, the chances ar.e that the farm~r would Government in the honorary capacity of a "Voluntary employee not receive more than that price for his product, in \Vhicb event without compen ation. I can not believe that this would be the guaranteed minimum would prove to be the actual maxi­ wise or fair ; all classes of citizens should be placed on terms mmn. But, even so, the farmer should be well satisfied, for he of absolute equality. One ·class is ju t as patliotic as the. woul

·4218 CON-GRESSIONAL -· RECORD--·SENATE ·. JUNE ~~'·

Mt·. RoTHWELL. Lack of ·ocean tonnage, which has resulted in tre; refused to return to the Illinois Central, and whtch they were using mendous congestion at the ports. for the loading of cotton· at that time for shipment to Memphis, there Sen a tor RANRDELL. And . the cars are being used there as storage taking out the cotton and loading the refrigerators with dead freight warehouses really fot· this grain? They can not be unloaded 11-nd re- and shooting it back to New Orleans for the same movement over again, or they were taking those Illinois Central .refrigerator cars and billing in}.!~~ J~~_:,ftLm~~ a considerable 'eJ..'tent that· is so. ~e have bad· them with cotton freight through to Fall River. cars on the way from Minnesota to Boston four months, when ordinarily · Senator RANSDELL. Do you know just what e!fect the refrigeration bad the time would be 15 days. • . on brick? [Laughter.] Senator RANSDELL. And you say one of the most serious problems Mr. PHILLIPS. I do not know but it had an awful effect on our per­ now connected with this question is the inability to get the grain ishables. Without going into any details, those were some of the con­ inoved from the elevator to the mill? ditions that were going on all over the country. Mr. ROTHWELL. Yes, Senator. Senator RANSDELL. That was last fall 'I Senator RANSDELL. 'l'hat bas been a very serious problem, and it is Mr. PHILLIPS. That was ' last fall. Then the movement of the cal'S to-day a vPry serious problem? had been very badly slowed up. I will not attempt to give you any of Mr. ROTHWELL. Yes. . the specific instances, although I have them here and could do so. Senator R.L--.sDELL. Do yon regard the question of transportation as Senator RANSDELL. Could you put some into the record? one of the most serious which the Nation has to grapple with in this Mr. PHILLIPS. Yes; for example, two cars of pears-Pacific Fruit Ex­ whole food situation? press cars from Oregon-that reached Boston on· October 18 over the Mr. ROTHWELL. I do, Senator. Boston & Maine. They were ordered on that very day to the Quincy Senator RANSDELL. One that we ought to give our very best thought Cold Storage Market Co., which was distant 1 mile from the end of the and attention to, certainly. It ·is a tremendous problem •. Boston & Maine tracks, over the Union Freight RailroadlxanC one of those cars reached cold storage on the 24th, which was s days from . Testimony to the same effect was given by Mr. Moses, who, the time it was ordered to be placed there, and the other reached there • I repeat, is president of the Southwestern Millers' League and on the 25th, which was seven days. Another car of boxed apples, the Kansas Flour Mills Co., Kansas City, 1\lo. The· chairman which I remember was ordered for Springfield, Mass., and left Wash­ ington on October 18, and November 11 had not been beard of at all. asked him: · Cars of apples were detained in the Portland yards, en route to Boston, Have you discounted in that the prospective crop short:age for the for six days; and other cars which were bllled from a point 15 miles current year? Is not that a factor that has reacted on prices of the out of Boston to Boston could not be found after five days. · present supply? Take the case up at Trinidad, Colo. : Two cars of cranberries went Mr. MosEs. It may have had an influence on- prices, but I doubt if in there. The railroad took either three or four days to place the to any great extent. The price has 1been influenced more largely by cars for unloading after arrival. The man unloaded them the very day transportation than any other one factor. they were placed, and the carrier took three or four days after that to The CHAIRMAN. More than by the psychology of the situation and ,haul them out from the warehouse. the fright that has been occasioned by talk about starving to death? • The representative at Louisville of the Pacific Fruit Expre s stated · Mr. MosEs. That is the second one. But the first item that has that the Pa.cific Fruit Express cars were making only two-fifths of a. caused these high prices is transportation, pure and simple. trip a month, whE-reas they should make at least a trip a month. Those The CHAIRMAN. Do you think that has doubled the price of wheat? are some examples of the delays in movement which are going on over Mr. MosEs. lt may not have been entirely due to transportation, but the country. it was the original cause of the commencement of upward movement. Senator RANSDELL. Were these all abnormal? It has prohibited the fre~ interchange of wheat stocks from one market :Mr. PHILLIPs. -very abnormal. · ' to another. ' · Senator RA~SDELL. Why? How do lou account for that situation? . The ·cHAIRMAN. It looks like in that case that the market would be Mr. PHILLIPS. Well, it was a lack o motive power, failure to ob erve _ spotty, and where they had the transportation facilities the price would their car-service rules, holdin~ each other's eauipment, inefficiency-- be low and where they did not it would be high. This is uniform and Senator RANSDELL. Why dld they do that? I can not conceive a apparently due to a uniform cause. thtng like that the Louisville & Nashville· using those .refrigerator cars Mr. MOSES. 1 should hardly think that would be carried out fully to haul"cotton ln. There must be a motive back of a railroad doing any­ on this account. If you owned · wheat ill' southern Idaho, while it thing like that. might be impossible to get cars to ship it to Chicago or to Kansas City Mr. PHILLIPS. They bad other commodities to .move, and. they· took or to the Gulf., yet you naturally base your ideas of the worth of that any cars that were available and put that commodity into them, re­ wheat on the prices that n:ight prevail -at· other points, less the r~tte gardless of whether it should have gone into those cars or not. of freight and expense of hauling, regardless of whether the actual wheat or the flour could be transported quickly or not. Mr. RANSDELL. On the 10th of May last l\1r. S. A. Thomp· Thaf testimony was confirmed nnd elaborated on the same day son, secretary-treasurer of the National Rivers and Harbors by Mr. .Robert G. Phillips, secretar~ of the International .Apple Congress, sent out a large number of circular letters to State Shippers' Association, of Rochester, N. Y., who stated in sub­ and national trade associations and prominent manufacturers stance that enormous quantities of fruit and vegetables of every asking for information as to the extent of damage and loss kind and sort had been lost in the Northwest last year because which had been c.aucsed by the car sl;wrtage. The replies re­ of" the car shortage. He cited an instance where the Louisville ceived indicated that conditions in many lines of business . & Nashville Railway Co. was actually· UJ?ing refrigeratbr cars throughout the country due to this cause were very serious, and to carry cotton, lumber, brick, and commodities of that kind. in some cases desperate. I will read just one or two of these The situation was very bad according to the testimony of that replies and ask to insert some of the others in my remarks with­ gentleman. I will ask to include in my remarks some of his out reading. Here is one from l\1r. 0. J. Shaar, traffic manager statements. . of the Packard Motor Car Co., of Detroit, Mich., in which he The VICE PRESIDENT. Without objection, permission is says:. granted. At times during the past winter this company had as high as $1,500,000 he matter referreq to is as follows : worth of product on the shipping floors awaiting transportation- Mr~ PHILLIPS. Mr.· Chairman and members of the committee, without ! hope the Senator from Michigan will listen to this­ any question whatever the element of transportation is one of the most Carriages and trucks were d.riven under their own power to Chicago, vital problems of distribution, and one of the elements that needs to Indianapolis, South Bend, Clnc·innatl, Columbus, Cleveland, Pittsburgh, be safeguarded at this time in every possible way. I speak advisedly and Buffalo, and deliveries in many instances were taken by our dealers because, commencing last fall, the refrigerator equipment an(\. tnsulateci in those and other towns at points on the Great Lakes which we could equipment necessary· for the .movement of perishables became acute, reach by boat after navigation opened. For instance, our Cincinnati and culniinated about the last of October, particularly in the North­ dealer would take deliveries at Sandusky, ·our Columbus dealer at western 8tates, with the movement of box apples, and also in por­ Tcledo, our Pittsburgh dealer at Cleveland. tions of the E.ast, particularlv in New England and that territory. As a result of those conditions,. hearings were instituted by the Interstate Mr. Charles Quinn, of Toledo, Ohio, secretary-treasurer of the Commerce Commission and continued for some 12 days or 2 weeks at Grain Dealers' National Association, said: Louisville. I attended those hearings and represented our interests, and particularly the apple and perishable interests. The only information available at this timE' is that which is generally I might say at that time there were thousands of boxes of apples­ known to the business men of the country, namely, that all our mem­ yes . hundreds of thousands-and I do not know how many potatoes bers, in common with all other shippers, suffered severely because of and other perishable commodities awaiting ship.nent out of the North­ lack of equipment and motive power of the carriers. ' west, and the same was true generally over the country. ~ Here is a reply from Charlotte, N. C.: At that particular time we had this situation: The perishable crops of the country were less than they had been for some years. The GEO. H. MCFADDEN & BRO.'S" AGENCY, potato crop showed at least 100,000,000 bushels under the preceding . OharZotte, N. o.A May 12, 1917. year. The onion crop was probably not over 45 per cent; cabbage Replying to your circular letter of May 10, it is impossible for us was very light, and apples in the barrel territory showed probably to give you any actual facts and figures regarding car shortage in the 25 per cent under the preceding year. In the box States there were Southern States, but in the writer's own business, for instance-cotton 17,000 to 19,000 crates less than the preceding year. And so on down business-we are having the greatest di.tliculty in getting cars in which the line;-and yet with this shortage of perishable crops to move in to make shipments, and we hear on all sides that the m1lls are having refrigerator and insulated equipment, we had, in spite of that fact, similar difficulfles in moving their goods. a worse car situation, a worse transportation situat:ron, than- we had JllNNINGS & BRYANT, A.gettt8. at, any time within several years bark, and at times when we had far Here is one fi·om Pittsburgh, Pa. : . larger crops, indicating that something was very decidedly wrong. As the result of that hearing at Louisvllle, the facts were developed MuRRAY MoTOn CAn Co., that the railroads of the country had totally disregarded their car­ Pitt8burgh, Pa., May 1!, 1917. servl,ce interchange rules; that they were deliberately stealing each Received your letter of May 10, and we have practically given up all other's equipment and refusing to return H; that they were misusing shipments by freight. . , refrigerator equipment intended for perishable crops and using it in the shipment of dead freight, cotton, paving brick, household goods, Think of that, Senators- cement, lumber, explosives, and all of those things. The cars that are delivered within driving distance of Pittsburgh we Senator RANSDELL. In refrigerator cars? have driven over In fact, we have ddve.n over all our cars that were Mr. PHILLIPS. In ·refrigerator cars. Just as an example, a repre­ delivered to Baltimore. -The cars that go to New-York are nearly all - " sentative ot the Louisville & Nashville · testified on the stand at sent by express, except the ones they are in no hurry for. These are Louisville that they had ~me 350 Illinois Central refrigerator cars- -tak.,en with some 'other freight shipments, and it takes at,least a month 1 think those were the figures; about that-which they positively for them to get to New York. • • •

I t917. CONGRESS! OJ.. J AL RECORD-._ SENATE. .4219

One month from Pittsburgh to :JS'ew YOI'kt And then be adds: South. Now, it the .rnili:oads have not- su-ftl-c-lent ears. to do the trans­ portation of the country, does not tlie eountny need to, be able to use that - I understand th~ Go.odrieb Co. are delivering tires- b~ truck the- n:utgnifi~ent waterway system. pro-vided by- nature? - • .from Akron to. Bus ron.. The~ representative told me .this tbe other day. W. N. l'4Ull&.Al:., President. Fa.L.'i'K S. MooDY,.. Pre8ident. Think of that-from Akron tO> Boston by mo.too: trucks, a dJs .. 1\lr_ RANSDELL. A. report was made ro Congres on the- 20th tance oi oYer 700 mlles ! - I will give- yml\ a fe additional fig­ of this- nwnth by the Federal Trade- Commission-see House ures on that in a moment. Doeument 193. Sixty-fifth Congress, first sessio"n-which shows a Witlwut read.ing, I ask permission t.o-insert the remalnda: of de perate situation with :regard t()- :fuel, owing to defective water the e replies in IllS remarks. - · ' and rail transportation. I wish to read just a few remarks fl:om The. VICE PRESIDENT. With-out ob-jec-~ it is s.o, ordered. that document and suggest that aU the Members of this body The matter-_referred tQ! is. as· follows :. get it and study it. It- is House Document 193 of this sessio-n. Nano.-AL PAvnro: BRICK ML~FAc-nrR.E.Rs" AssoCIATroY, It was- introduced in tbe House on the 20th o-f this month. The Oleuetand,. Qliio,. May 14. 191-'T.. Federal Trade Commission says: Wq have yours of May 10 an1.1 we an in hearty sympa.th~ with the purpose of you:r i,nquiry and beg to say that- approximately the ef­ The- pooling of coal lu the hands of a Gover-nment agency would ficie-ncy of the- ma.nufac-t-uTmg; plants repres.en.ted b.l' this. association sun be- ineffective- either as. to- dlstnlmti-on 0-1' as to the promotion of has been decreased fully 25 per ::.ent by reason o.l a shmrtage- ot ear a maximum of -production uuless similar control extended over aU &elTViee. .means of transportation. both 1·aU and water, and to mee.t this the WtLr. P. Br..Am., Becret.ar.-rt pool:ing of raill;oads and bo.at ttn.es is clearly indicated- The rail­ roads of _the country, if operated as a tmit and on Government ac­ count. could be. used to. tram~por.t coal a.niL oth.~r products b-y the most A:riO:NAL ASS:OCIAmON OF THE dh·ect route to their point of· destination. and the efficiency of the. ~ I:r:R lliDUS'l.B-lES OF THE UNITED- S'.UT.ES._ roads th.emsehre- and ot ex:isti.n,g:- rolling stock and ot motive power Bosta:n,_ Mass:., Ma-y 15.,_ 1.917'.. would be vastly increased.. A number ot our pe-ople load on th ir own siding and have to. wait Our allies and Germany all require th.e r-ailroads not already Gov­ for as long as a week 01: 10 days to. get the- cars. which. they o.rder; e:rnm.ent owned to be- operated as a unit and em Gcn:ernment account, many othet: truck the-ir ship-ments tQ: a loading depot, and there have an-d the allies ha:ve officially stated that one rea on for being cet"ta.in. o.f been occurrences where b'ur.k loads. are refused and have to. be- taken victOl'y was that transportation hadi been rem:ganized and perfected. baek to th1! plants. _ For the purpose of o.peration tba several ra.ilroad: lines M--nd systems It is also a common: oecurr nee- foor ._,-pods dellve:red a.t the• loading anil inland and coastwise- water transpurtation of. th United States depot to rema~ there anywhere from 3. to 10 days before- cam a.re­ would', under the plan here suggested, lose their identit~ and could he av.ailable to load upon. It has been a. Set"ious incen~enience-, an!l par­ coordinated Into a unit foT efliciency- and economy. ticul-arly serious- at this time when many c~ete-ry _memorials. ru-e be­ All reeeipts from all rail and water transportation agencies be-ing ing hipped for erectlou previous to l\lemorl.a1 Day-. We- te that a pooled in the hands of the- Government.. and all &~>ense. of operation number of people will be dlsal.}pointed. . paid from the common fund. each tndlvidnal company should' be paid ROB.EB~ D. Swnt, Secreta-ry. a just compensation-.. which might be measured by the average annual net profi.t and ,eA.-penditnre- tor main tena.nce- a.nd betterments tor the THE RETAIL. LUMREB' DEALE~ ASSOCl!ATHJN oF· 'I:HFl . five-year period prtor to the war. S!rATE' OB" Nl!rW> YOllK, The OJleration both o.f the Illilles and of the transportation agencies Rochester. N. Y.,_ May 12>k J.E11. could be carried on by the pre ent emp-loyees a.nd o.ffi.cials, and after W 13 can no-t ;;ive you a_rcy- definite infocrnatton 1n reply· to. your letter the w.ar they could be returned unimpaired t~ private operation-. of' May 10, requesting statlstles as to the- railway shor:tage tn the lum­ The rollin.g stock of rallioads. operated as a. unit, couldi b.e mnbilized ber business- iD New York State. We do know tha.t eondltions at the so- as to care fm: the shifting seaso.nal demands. present time a.ra severe. It ls almost. impo sible tor the lumber dealers In view of the. foregoing, the commiss-ion recomniends :- to secure shipm.-nts OJf lumber whlcb were ordered[ weeks and month ago. I have before- me- at this moment a comp-laint relative to a car of First. That th.e- production and: disfiibu:tiOJl oi eoal: and coke be, con­ shlru:Pe wlrlcb was- ordered in the early pa.rt of September, and it has ducted through a pool in the hands of a Government ag-ency ; that the not been shipped yet. This. is indicative ef con-ditiQilS which dem-and- produce-rs of var-ious gradeS: of fuel be paid th-eir full cost of J.}roduction pllla a un.i!O-rm profit per- ton (with due allowance for quality of prod­ ~E1~:~Ybel1eve that every possib!e use should be made ot the waterways uet and e.-tHriellc-Y o!- sm-vi.ce).. c1 the United States in order- to rele-a e fi-eigrt ears for serv.tce. We­ Second. That the transpo.rtation agencies of the United States, both wish to commend you fo.r the wo..rk wblcb you are doing. rail and water, be similarly pooled and operated on Govenunent ac­ P4.1:iL. S. C!)LLIEB~ Sect'etar~ count. nnde.r the- direction of the President.- and that' ail such means of · transportation be ope-rated as a unit, the- owning corporations being THE LUMBER DEA:LElls! ASSOCIA.TTON OF CoNSE.CTI:CUT, paid a. jll t and fair coml)e-nsation which would cover normal net profit, · Ne:w Hw;en, f]on.1-._ Ju.n 8, l!n7.. upkeep and bettetm.ents. . Informatio-n which has come to- us. through statements or members­ 1\!r. President, that is a straight recommendation of Go-vern­ located in various parts o! the State. which is the tertit.m·y thls.asso­ ciation covers, would tndiea.te- that conditions a.re of a.. serlons nature. ment operation and control of air the transportation agencie of Car shortage and embargoes have delayed slupments of materlal ·re­ this country. I do not know, sir, that I am prepared to go that quired tor necessary bullding eonstruc-tion. ln many instances orders far, but l am dec1dedly in favm· oi such regulation and control given for cru:a of lumber for· immedi.ate us have- nevecr been received. In instances shipments haven't left- the mills for Lack of cars. and of these- agencies as are- neee ary to assure effective service shipments ltave- bee-n delayed due to embargoes. Membe:Ys have ta.ted while this "Wall' lasts, and I d() not b.elieve th.a.t we can have e.f­ that if the situation does not clear for the b~tter thi!ir business iu.ter­ fective ervice unless we- empower the Pt:e-sident to make prefer­ ests might as well be discontinued, for they a~e in no position to meet the demands of their customers. ence shipments, as we did in a b.ill passed here last week. Un­ B . .A::-- LAMllLlN'_,_. A.&8i8ta-nt Se-c11'etMg. fortunately, however, that bill seems- to have been limited to war munitions. and to the emergencies caused solely by the wru-.· - FORT WoRTH FmrrmiT BUREAU,. l think it should go. further; and I introduced an amendment Fort. Worth.. Tt:a:..A Ju1te 4_, 191.7. to~day which w.ill give the President very considerably increased One shlpper who uses a large quantity o! sugar in an a.rtic-Ie he power- ·aver our transportation agencies. My amendment does manufactures advises that he- wits fru-ced to pay e:xor--bitant pric-es for sugar as a result of not being able tOI have order filled at New Orleans one thing which is not included in the bill passed last week, and o.n account of inability ot the Ameriean Sugar Co. to secure cars A that is, it takes in motor-truck companies. grain firm advises that they had to turn down an order of· some 200,000 I doubt it many Senators have given. very much attention to bushels of wheat from Minneap·oJis to Galveston because the lines in Minneapolis would not let their cars go south. the q_uestion of car-eying freight by motor trucks. It is a most Eo. P. BYARS, _interesting thing, one well _worthy of your consideration:. A Secreta-ry tmtJ Tra(fio Manager. very short while ago I got a Jetter :frQro. t.he vice pre tdent of a railroad in Louisiana assuring me that his company was patri­ SOUTHERN A_ppu ACR!AN Co.u.. OPERAToas' AssoclAl!roN, • Kno:zn;'ille; Ten~; · Mau 24, 1911. otic and desired to pay· taxes ; but, said be: The only unsatisfactory feature o~ the sftu.aoon is an abnormal car I wish tQ. remin-d you that --moto~-tr-ue1l: companies :rre now carry1ng shortage_ The mines m east Tenne see and southeaste£n KentuciQ" at freight tor a di.stance of itO- miles out o-f one of th& largest citie in best are not able to operate more than. halt time ;, many ot- them are Louisiana, and delivering that fr~igbt alongside· my tr11cks at exactly not doing this welL t_be same- rates- cbarged by my ·ratboad. with the adrte.d advantag-e' to J"AMES- lll McCoY, BeoretlJ-1.'71. the truck company that lt. teceiv:es it& load directly f!1om the warehouse or :factory. and at the- terminus livers the good into the bands of tbe im>El'IDD.El.NT- OIL rEY~s AssociA:ri-oo store- or faetory to which- they are con igned, and deltT~rs tb.em at ex• Okicag.a Ill., M a-u 23 1911. actly the SaJDe price. Now, if my eompany- is- to- be taxed as. a-- trans­ As yoa are already awa.re-, this association fs not vitally interested in porta-tion agency I thfnk th~re. sboold be- a ~p.artionate tax on these the shortage of railwa-y equipment, a about. 80 per· cent of our proflucts motor trucks. are shipped in tank ears, 95 per cent of hich al-e privately QWll.ed. There was a gentleman here several days- ago -from the city of The great diffieulcy we- have had lately has bee-n the slow move-ment Kno.-xville, Tenn., who mad~ tbe statement that two short branch of cars on all line , and -it has. taken about three tim~s the number- to do the ame wo'rk as it did a year- or more ago-_ lines of railroad hav been put out of busi-ness by. the- competi­ E.. E ~ Q'RANr, Secn-tanr. tion of motor trueks-. He also. says th.at th-ere are several .. lines _of motor- trucks running reguJ.arly t() points fro.m 50 to THE- F.msT· NAno. AL BANK,. , -6.0- mile.s out. of. Kp.O;x ilJe. ~ Tb.e 1;etaile1· in a sinall t~wu c;an . • Tu calo.o-sa A-la., November U, 19-16. , telephone to a whole ale house in the morning and the truck At the presE.'nt time there ru:e- perhaps 14 tb1s coun.teyr alo.ne -1.-500 or will pick up- the. order- about namrand dt:>liver u-- at the door of 2,000 carloads -of lumber awaiting shipme-nt.. The- owne-rs hav beE.'n gt,'eat required to hold -thls ·ruml>el'- a lon~ time- on ·aecount or the shortage of the..I.etaila the- same e-v~nihg~ resulti.Iig_ in a saving both c1rrs. It ~ seems · that . there Uf a ' sh6rtlige. of ear8 • netili-y- all over 'the in time and trouble. - - .

4220 OONGRESSION AL REOORD-SENATE.

!.understand there are firms which make a regular business.Qf . . CARRY .ADDITIONAL RUBBED. . , , _ transferring goods, .especialJy -.. household goods, between 'New The tires used are of the same construction as other Goodyear cord tires , except that they carry a larger number of plies of cords and mucp York and Philadelphia, and it is said that John Wanamaker, addiuonal1 rubber. They carry a 5-ton load with uo more damage to the .who has stores in both cities, has used motor trucks extensively r?ad than that caused by an ordinary touring car. The tire is suffi­ for ·the transfer of merchandise from one store to the other. ciently large to cushion the load, absorbing all shocks and distributing the weight over a greatly increased section of it. - - An English firm dealing in fine furniture made a practice of _With the use of these pig tlres,.allowing transportation of heavy loads sending its 'goods from the main store in London to a branch in Without damage to the road surface, the opposition to the operation of Paris by auto trucks, which crossed loaded on the channel truck transportation lines, which has been aroused by the pounding and pulverizing action of many solid-tired heavy-duty trucks on , the steamers. foundations of the roads, will be withdrawn, for it is not the heaviness What its practice is to-day is not known, but before the war of the load that breaks up the road surface, but the jolting and pound­ broke out the British Government, as fast as its contracts with ing and intense vibration caused by lack of proper cushioning. 1·ailroads expired, :was' sending mails to the Channel and foreign 1\lr. RANSDELL. · I suspect that some of my hearers are say­ steamers by auto trucks exclusively. ing: "Well, what has that got to do with the food situation?" Mr. President, I ask permission to· iil.sert in the REcoRD at Senat01's, it has a great deal to do with it. In the vicinity · of this point a memorandum bearing on the subject of transporta- every big city of this country there is an immense amount of­ tion by motor truck. . freight now being carried by auto trucks. All milk, fruit, and \, 'The VICE PRESIDENT. Without objection, it is so ordered. vegetable dealers, people engaged in many kinds of business, are· The rna tter referred to is as follows : delivering their goods to the cities by auto trucks a distance of Shipme.nts of beer to points within 100 miles, formerly made by 7.5 to 100 miles, in the aggi'eJ?;ate relieving the railroads of an freight, required packing at point of shipment and delivery, besides enormous quantity of the freight they would otherwise be com­ ·ta.xe , insurance, etc., and the necessary handling at both points. Motor pelled to carry. Bear in mind that this bill provides f01: the trucks make all this expense and trouble unnecessary, and the beer is in better condition on arrival. . movement of food and fuel as well as their production. Owing to the increased shipment of merchandise to New York for I hope this phase of the matter is going to r~ceive . mot·e con­ Europe, the business men of New England find it very hard to make sideration than has been given to it yet. I hope that next fall ordinary shipments to that city. Recently a printing press was de­ we are not going to be confronted with the awful car shortage layed a we~ without hope of delivery- soon. Being urgently in need of it, the consignee in New York had it sent by truck from Shelton, which confr

~ r. 19V7 • CONGRESSIONAL -~-RECE>RD-· HOUSE: ~ 4221 ~ -

. Taylor P. Calhoun (a yeoman, first class, in the Navy), Leslie R. Corbin. Ernest M . .Cronin (a pay clerk in the Navy), · Willard C. Brown. · Leslie R ~ Corbin (a pay clerk in the Navy). Donald C . .Tohns. . ' Willard C. Brown (a citizen of New York); James C. Bequette. · Donald C. Johns (a citizen of illinois), James Anderson. James C. Bequette (a citizen of California), , Kenneth C. Root. . James Anderson (a citizen of South Carolin~). Benjami;:l H. Micou . Kenneth C. Root (a citizen of Wisconsin), George M. Wiles. • Benjamin H. 1\Iicou (a citizen of Michigan), William T. Hopkins. George M. Wise (a citizen of 'Visconsin), Roark Montgomery. · William T. Hopkins {a citizen of Wisconsin), Henry Kuhrmeyer. · Roark Montgomery (a citizen of Texas), · Albert W. Rutter. Henry Kuhrmeyer (a citizen of Minnesota), Elliott Ranney. Albert ,V. Rutter (a citizen of Vermont), Louis H. Huebner. ··Elliott Ranney (a citizen of Kansas), William C. Wallace. ' LouiS H. Huebner (a citizen of Texas), Gilbert L. Cleland. · William C. Wallace (a citizen of South Carolina), Wflliam C. Preston. ' Gilbert L. Cleland (a citizen of Kansas), ' Casper T. Frederickson. .... · William C. Preston (a citizen of Missouri), Hermann C. ·Miller. Casper T. Frederickson (a citizen of Minnesota), Rusell L. Richard. Hermann C. Miller (a citizen of Ohio), Paul McC. Browder. -Rusen· L. Richard (a citizen of Missouri) , Edward B. Erickson. · Paul McC. Browder (a citizen of Washington), William E. Davis. - · Edward B. Erickson (a citizen of illinois), Thomas A. Durham. · William E. Davis (a citizen of Ohio), William A. Best. · Thomas A. Durham (a citizen of Washington), Frank C. Dunham. : William A. Best , (a citizen of Vermont). Iva B. Talton. Frank C. Dunham (a citizen of Vermont), John E. O'Brien. Iva B. Talton {a ~itizen of Maryland), George E. Dryden. . John E. O'Brien (a citizen of New York), .T ohn . Sprague. George E. Dryden {a citizen of Maryland), George M. Snead. John W. Sprague (a citizen of Vermont), George W. Clement. George M. Snead (a citizen of Virginia)~ Franklin T. Skinner. · George W. Clement (a citizen of South Carolina), Laurence H. McKay. Franklin T. Skinner (a citizen of ~Minnesota), Gaillard Rembert. Laurence H. McKay (a citizen of Virginia), James R. Frawley. - . Gaillard Rembert (a citizen of South Carolina), George S. Baldwin. James R. Frawley (a citizen of Wisconsin), Albert T. Sands. . GeorgeS. Baldwin (a citiz~n Qf Ohio), Carlton J. Saunders. Albert T. Sands (a citizen of Wisconsin), Arthur B. Poole. Carlton J. Saunders (a citizen of Virginia), 'Vallace Prior. Arthur B. Poole (a citizen of Minnesota), Arthur Bjornstad. Wallace Prior (a citizen of South Carolina), - Roy M. Anderson. Arthur Bjornstad (a citizen of Minnesota), Edwin F. Barker. Roy M. Anderson (a citizen of Vermont), Harry M. Mason. Edwin F. Barker (a citizen of illinois), James D. Boyle. ·Harry M. Mason (a citizen of Virginia), Raymond V, Adams. James D. Boyle (a ~tizen of Minnesota), Walter A. Buck. . Raymond V. Adams (a citizen of Kansas), Clifford C. Edwards. · Walter A. Buck (a citizen of Kansas), Maury W. Boykin. Clifford C. Edwards (a citizen of New York), Walter Mandry. Maury W. Boykin (a citizen of Virginia), Thomas E. Hipp. I ·Walter Mandry (a citizen of Missouri), Ray C. Sanders. Thomas E. Hipp (a citizen of South Carolina), Arthur Rembert. Ray C. Sanders {a citizen of Vermont), and Arthur ~embert (a citizen of Virginia). HOUSE__ OF REPRESENTATIVES. CONFIRMATIONS. · MoNDAY,_June 25, 1917. E:cectttive nominations confirmed by the Senate June ~5 (legis­ lative day of Jut~,e 22), 1911. The House met at 12 o'clock noon. RECEivER OF PUBLIC MONEYS. The Chaplain, Rev. Henry N. Couden, D. D., offered the fol­ lowing prayer : George W. Bruce to be receiver of public moneys at Montrose, Our Father in Heaven, imbue us plenteously with heavenly COlo. grace that . we may be prepared to meet all the great and com­ PROMOTIONS .AND APPOINTMENTS IN THE NAVY. plicated problems incident to the unprecedented conditions of The following named to be assistant paymasters ln the Navy: life wisely, calmly, conscientiously, striving day by day to live Carlton R. Eagle. to the higiJ.-water _mark of our reli~ious convictions, leaving t]le ·Charles J. Harter. results to a wise and beneficent Providence which has never yet Wilson S. Hullfish. failed us ; for Thine is the kingdom and the power and the Sidney P. Vaughn. glory forever. Amen. Hugh F. Gallagher. . The .Journal of the proceedings of Saturday was read and ap- Robert O'Hagan. .._ proved. · George C. Tasker. CORRECTION. · Charles C. Timmons. _ Albert B. Dayton. Mr. HAMLIN. Mr. Speaker, I desire to correct the REco1m. Michael .T. Stubbs. On page 4519 the Chair, in a ruling on the point of order,_on Alfred B. Clark. Saturday last, against an amendme~t _offered by the gent1emp1 Henry Guilmette. from Oregon. [l\1r. SINNOTT], the Chair is made to say- The Chair thinks also that if he had tried to hold it in order, even ·Robert L. 1\Iabon. if not out of order on account of not being germane. it was in order :walter H. Biclrnell. under the proyisions of the bill to give the President the right to en· Bert R. Peoples. courage produetion. . _ -Percy C. Corning. It should read. "it was not in order under the provisions ' o~ Taylor P. C~lhoun. the· bill to give the President the right to encourage production, ·Ernest M. Cronin. and so forth: , . - LV--268