5274 CONGRESSION.A.L RECORD-SENATE 1\Lillcn 24 5888. By 1\fr. WARE: Petition ·signed by 187 citizens-of Cov­ H. R. 340. An act to atlthorize the inrorv.orated town of ington, Kenton County, Ky., protesting against House bill 78; Anchorage, Alaska, to issue bonds for the construction and to the Committee on the District of Columbia. equipment of an additional school building, and for other 5889. Also, petition signed by citizens of Newport and Coving­ purposes; ton, Ky., urging that immediate steps be taken to bring to a H. R. 7367. An act to authorize the incorporated town of vote a Chi.l War pension bill; to the Committee on Invalid Pen­ Seward, Alaska, to issue bonds in any sum not exceeding sions. $50,000 for the purpose of constructing and equipping a public­ 5890. By 1\lr. WHITE of Colorado: Petition presented by Dr. school building in the town of Seward, Alaska ; and 1\I. L. Rice, president Colorado Conference of Seventh-Day Ad­ H. R. 9860. An act to amend the act of .April 25, 1922, as ventists, being 131 feet long and containing 3,035 signatures of amended, entitled "An act authorizing extensions of time for residents of Denver, against the Lankford Sunday observance the payment of purchase money due under certain homestead bill (H. R. 78) ; to the Committee on the District of Columbia. entries and Government-land purchases within the former 5891. By Mr. WYANT: Petition of Thirty-fifth Continental Cheyenne River and Standing Rock Indian Reservations, N. Congress, Daughters of the American Revolution, favoring pas­ Dak. and S. Dak. sage of Capper-Gibson bill ( S. 1907, H. R. 6664) ; to the Com­ mittee on the District of Columbia. ENROLLED Bll..LS AND JOI~T RESOLUTIO~ SIGNED 5892. Also, petition of Tarsus Commandery, No. 375, Knights The message also announced that the Speaker had affixed of 1\fnlta, 1\lanor, ·westmoreland County, Pa., favoring passage his signature to the following enrolled bills and joint resolu­ of House bill 10078; to the Committee on Immigration and tion, and they were signed by the Vice President: Naturalization. S. 1665. An act to authorize the board of pari~ commissioners of the city and county of San Francisco to construct a. recrea­ tion pier at the foot of Yan Kess Avenue, San Francisco, Calif.; SEN... ~TE H. R. 445. An act authorizing the Secretary of the Interior to enter into a cooperative agreement or ag1·eements with the SATURDAY, March 24-, 1928 State of l\lontana and private owners of land within the State The Chaplain, Rev. Z~Barney T. Phillips, D. D., offer~ ¢e of Montana for grazing and range development, and for otheL' following prayer : purposes; H. R. 3145. An act for the relief of " .. illis B. Cross; "How beautiful it is to be alive! H. R. 7367. An act to authorize the incorporated town of To wake each morn as if the 1\Iaker's grace Seward, Alaska, to issue bonds in any sum not exceeding Did us afresh f1·om nothingness derive, $50.000 for the purpose of constructing and equipping a. public­ That we might sing, 'How happy is our case! school building in the town of Seward, Alaska ; How beautiful it is to be alive! ' H. R.10027. An act to authorize t11e tram:fer of a portion of "To .l'ead in God's great book, until we feel the hospital reserration of the United States Yeterans' Hos­ Love for the love that gave it; then to kneel pital No. 78, North Little Rock, Ark., to the Big Rock Stone • Close unto Him whose truth our souls will shrh·e, & Material Co., and the transfer of certain land from the Big While every moment' joy doth more re,·eal Rock Stone & Material Oo. to the United States; 'How beautiful it is to be alive.' H. R. 10083. An act to provide for advances of fundS by spe­ "Not to forget when pain and grief draw nigh, cial di~bursing agents in connection with the enforcement of Into the ocean of time past to dive acts relating to narcotic drugs; For memor ~ es of God's mercies, or to try H. R. 10373. An act authorizing the Plattsmouth Blidge Co., To bear all sweetly. hoping still to cry its successors and assigns, to construct, maintain, and operate a 'How beautiful it is to be alive! ' bridge across the Missouri River at or near Plattsmouth, Nebr.; and "Thus ever toward man·s height of nobleness H . J. Res. 211. Joint resolution to amend Public Resolution Strive still some new progression to contrin~; No. 65, approved March 3, 1925, authorizing the participation Till, just as any other friend's, we press of the United ~tates Government in the International Exposi­ Death's hand; and, having died, feel none the less tion to be held in Seville, Spain. 'How beautiful it is to be alive. '" CALL OF THE ROLL Let us pray. 0 merciful God and Heavenly Father, who hast taught us in Thy holy word that Thou dost not willingly affiict Mr. CURTIS. l\Ir. President, I suggest the ab..~nce of a or grieve the children of men, look with pity, we humbl;r beseech quorum. Thee, upon the sorrows ·of the family and loved ones of Thy The PRESIDIXG OFFICER (~Jr. FEss in the chair). The faithful servant whom Thou hast called unto Thyself. Gently cl('rk will call the roll. Thou didst press the tired lids to rest, for so Thou givest Thy The legislative clerk called the roll, and the following Sena­ beloYed sleep. Vouch ·afe to him, 0 Lord, light ancl rest. peace tors answered to tl1eir names: and refreshment, joy and consolation in the paradise of God; A~hurst Fletcher McNary Shortridge Barkley Frazil'r Mayfield Simmons and may the benediction of his noble character rest upon us Bayard George .1\fet<'alf Smith all, that having served Thee with constancy on earth we may be Black GerrY Neely Smoot joined hereafter with Thy blesseu saints in glory everlasting. Blaine Gillett Norb<> ck Steck Blease Gooding Not·ris 8teiwer Through Jesus Christ our Lord. Amen. Borah Greene Nye Stephens Bt·atton Hale OddiP. Swanson The Chief Clerk proceeded to read the Journal of the proceed­ Bt·ookbart Hawef; Overman '.rbomas ings of the legislative da;r of Thursday last, when, on request Broussard Haydt'n Pine Tydings of 1\Ir. Cu"'RTIS, and by unanimous consent, the further reading Capper Johnson Pittman T~· son Caraway .Toni's Ransdell "'alsll, Mass. was dispensed with and the J ournal was approved. Couzens Kt'ndrick Reed. Mo. Walsll. ~Iont. The VICE PRESIDENT. The Senate will receive a message Curtis Kt'yes Robinson, Ark. Warren from the House of Representatiyes. Cutting King Robinson, Ind. Waterman Dale MrKellar Sackett Watson ?,{ESS.AGE FROM THE HOUSE Dill McLean Sheppard ·Wheeler A message from the House of Representatives, by Mr. Chaffee, Fess :McMaster Shipsteacl one of its clerks, communicated to the Senate the resolutions of 1\fr. JOKES. I desire to announce that the Senntor· from the House adopted as a · tribute to the memory of Hon. WooD­ Colorado [:Mr. PHIPPS] is absent ou offieial business. BRIDGE N. FERRIS, late a Senator from the State of Michigan. l\lr. ROBINSOX of Arkansas. I wish to announce that the The message also announced that the House had passed with­ junior Senator from New Jersey [~Jr. EDWARDS] is necessarily out amendment the following bill and joint resolution; detained from the Senate by illn('Ss in hi· family. S. 3343. An act for the relief of the Arapahoe and Cheyenne l\lr. KEYES. I wish to ann~mnce that my collengue the Indians, and for other purposes ; and senior Senator from Kew Hampshire [lir. MosEs] is absent on S. J. Res. 31. Joint 1·esolution to provide that the United account of a death in his family. I ask that this announcement States extend to the Permanent International Association of may stand for the day. Road Congresses an invitation to hold the sixth sessioq. of the 1\Ir. GEORGE. I wish to announce that my colleague [1\lr. as~oria.tion in the United States, and for the expenses thereof. HARRIS] is necessarily detained on official busin~s. The message also announced that the House had agreed to The PRESIDING OFFICER. The Ohair cle ·ires to announce the amendment of the Senate to the bill (H. R. 3145) for the that his colleague [~1r. WILLIS] is necessarily absent, and that relief of Willis B. Cross. · this announcement will stand for the day. The message further announced that the House had agreed Seventy-one Senators having answered to their name~, a to the amendments of the Senate to each of the following bills : quoru~ is present. .1928 CONGRESSIONAL R.ECORD- SENATE 5275 My clients will very soon receive checks- for SO per cent -of all ALI~ PROPERTY A~D OTHER CLAIMS their custodianized cash, and they will receiv-e 80 per cent of all their Mt·. SMOOT. Mr. PI·esident, I have had sent to me a copy custodianized Liberty bonds or other property. They will receive 5 of a letter written by ~11·. A. W. Lafferty, 510 , Park Avenue, per cent interest-bearing certificates for the 20 per cent of their New Yo1·k, addl·essed to the firm of G. Siegel & Co., Stuttgart, capital withheld, and tht>y will receiYe also certificates for the in­ Germany. I ask that it may he printed in the RECORD as a part terest earned by their custodianized cash pl'ior to March 4, 1923, a of my remarks, anu I call it to the attention of the Senate for period of five years, -and that interest item will amOtmt to another 20 the reason that the letter is filled with falsehoods. per cent of the capital, and the last-named item would have been lost Mr. ROBINSO~ of Arkansa ~ir. PTesiclent, will the Sena- entirely this year to the German property claimants if it had not been tor yield? for the hearings which I alone demanded and procured before the Mr. SMOOT. Certainly. Senate Finance Committee. I believe the last-named certificates will Mr. ROBINSON of Arkansas. Does the Senator think the also bear interest at 5 per cent, due to my special argument and cita­ CoxGRESSIONAL RECORD i s the appropriate place to publi ~ 11 a let­ tion of a Supreme Court decision before the Senate Finance Committee ter filled with falsehoods? at the official hearingn, which you probably have read. Mr. SMOOT. I will say to the Senator that so many parties With best wishes, very sincerely yours, are interested in the alien property bill and \Vhat it contains (Signed) A. W. LAFFE:RTY. that I thought it advisable to let tllem know that Mr. Lafferty is Wl'iting to his client · making a number of statements in his LEASES GRANTED BY THE SECRETARY OF WAR letters which are absolutely untrue. I uo this because other The PRESIDING OFFICER (Mr. FEss in the chair) laid clients ha-re no doubt recei,ed letters from him to the same hefore the Senate a communication from the Secretary of War, effect, and I want them to understand the truth of the matter. transmitting, in compliance with law, a list of leases grantetl That is the reason why I give it uch publicity. by the Secretary of War under authority of the act of July Mr. ROBINSON of AI·kansas. Does the Senator intend to 28, 1892, during the calendar year 192i, which was referred to explain the statements in the letter? the Commiftee on 1\Iilitary Affairs. Mr. SMOOT. I will just read one statement to the Senate. Mr. ROBINSON of Al·kansas. I am not asldng the Senator PETITIO:i'\S Al'\D MEYORilLS to do it out of the order he has planned; but it occurred to me The PRE. !DING OFFICER (1\lr. l"Ess in the chair) laid that if the statements in the letter are untrue they should be before the Senate the following co-ncurrent resolution of the contradicted by a statement of the Senator from Utah in detail. Legislature of the State of New York, which was referred to Mr. SMOOT. Lafferty starts hi:-; letter by saying : the Committee on the Judiciary: You may have heard that I generated Rome warmth at Washington IX SENATE, STATE OF NEW YORK, in regard _to the alien property Lill. I did; and if I bad not done so Alhanv, March 15, 1~8. the capital release would have been only 60 per cent this year instead Whe-reas the GoYernment of the United States has no institution of 80 per cent. I let the big American damage-award holdl:'rs, as well in the State of New York for the confinement ot persons charged witll as the big German shlpping companies and banks, understand that or convicted of crime against the Gover-nment; and unless my clients got at least an 80 pl:'r cent release this year I would Whereas the Federal Government is dPpendent upon State, county, point out to the Senate Finance Committee some of the weaknesses of and city im;titutions for the ):emporary detention of its offenders, result­ the larger claimants on both sides. As a result, hearings were ordered ing at time in o.-ercrowding such institution · and in violation o! State before the Senate Finance Committee and the large American claimants laws r elative to classification of pri. oners; and then agreed to an 80 per cent release o! capital at this session to all Whereas the State commission of correction reports that the author­ German property owners. ities of the l::rniteu States have been notified that after April 1, 1928, The fact of the mutter is that the Bouse of Representatives no more Federal prisoners wiU be received in the institutions under tge agreed upon 80 per cent and there was no question in the minds jurisdiction of the department o! correetion of the city vf New York, of the members of the Finance Committee to change it in the which action promi<;es to result in congested conditions in county pen· least. 1\:lr. Lafferty had nothing whatever to do with it. That itentiaries and county jails of the State; aml is the only one of the statements that I shall read, but as the Whereas there is urgent need for a Federal institution in this State letter goes into the RECORD in its entirety I shall make only to care for united States prisoners: Be it the statement that other statements are just as false as the Resolt•ed (if the assembly concur), That t he Legislature of the State one to which I have called attention. of New York memorialize Congress to proviue a suitable institution in The PRESIDING OFFICER. Without objection, the request this State in which to confine those charged with or convicted of of the Senator from Utah is granted. crimes against the Government of the United States; be it further The letter referred to is as follows : - Resolt,ed, That a copy of this resolution be transmitted ro the Secre· tary of the Senate, the Clerk of the House of Representatives, and to (Abscrift. A, W. Lafferty, 510 Park Avenue) each Senator and Member of Congress from the State of New York at ~Ew YoRK, Fe1J1·ua11J 11, 19£8. Washington. - Per S. S. Karlsruhe, sailing Fe-bruary 12, 1928. By order o! the senate. ER2-."-EST A... FAY, Clerk. Firm of G. SIEGEL & Co., In assembly, March 19, 1928. Stuttgart, German.y. Concurred in without amendment. D:mAR SIRS : You may have heard that I generated some warmth at By order of the assembly, Washington in rl:'gard to the alien property bill. I did; and if I bad not li'RE-D W. HAlDfOND, Clerk. done so the capital release would have only been GO per cent this year, Instead of 80 per cent. I let the big American damage award holders, 1\Ir. WALSH of Massachusetts presented a petition of sundry as well as the big German sbippfug companies and banks, understand citizens of .Jamaica Plain, :Mass .• praying for the prompt pas­ that uuless my clients got at least an 80 per cent r elease this year sage of legislation granting increased pensions to Civil "'\Var I would point out to the Senate Finance Committee some of the weak­ vetm:ans and their widows, which was referred to the Com­ nesses of the larger claimants on both sides. As a result, hearings mittee on Pensions. were ordered before the Senate Finance Committee, and the large Amer· He also presented a re olution adopteu by the South Amherst lean claimants then agreed to an 80 per cent r<'lea ·e of capital at this Grange, of South Amherst, Mass., protesting against the passage session to all German property owners. of Senate bill 2806 and Bouse bill 10022, which provide for the You will remember very well the propaganda in all the German regulation of the use of certain sugars. which was referred to papers la;~ t summer that a 60 per cent release was the very best to the Committee on Agliculture and Forestry. be hoped for at this session of Congress. And that very program 1\fr. BROOKHART presented a resolution of the Des Moines wonlcl haYe gone through, except for the aggressive fight I put up (Iowa) Council of Parents and Teachers favoring the pa sage at 'washington this winter for the upstanding German property claim­ of legislation creating a Federal department of education, ants who were not stamllng on thin ice and who had nothing to fear. which was referred to the Committee on Education and Labor. As a result I have benefited all German property claimants to the Be also presented a petition of sundry citizens of Dubuque~ extent of 20 per cent of their custodianized capital-that is, my fight will Iowa, praying for the prompt passage of the so-called Cooper­ give them 20 per cent more of their capital than they otherwise would Bawes convict labor bill, which was referred . to the Committee ba ve received at this session of Congress. on Interstate Commerce. . I simply told Congress the plain, unvarnished truth, just as I told Mr. BLAINE presented a petition of 44 citizens of the State the people of Germany " Die Ungesehminkte Wahrbeit " in my pam· of Wisconsin, praying for modification of the quota restriction phlet sent out from the Hotel Kaiserhof last October. provision of the present immigration law S(} as not to discl'imi· I have used strategy which I belieYed would win before the Senate nate against the Scandinavian peoples, which was referred to Finance Committee, and it did win. the Committee on Immigration. CONGRESSIOS.A.L RECORD- SENATE lllA.ROH 24: :\Jr. FESS presented a petition of sundry citizens of Hamil­ conditions as will reimburse the l'nited States Government for the ton, Ohio, praying for the maintenance of the national-origin money expended, together with interest thereon, for th~ building of the quota system of -immigration restriction, which was refeiTed Boulder Dam and appurtenant works within 50 years. It is under. . tood, to the Committee on Immigration. of course, that these contracts will call for annual or other periodical 1\Ir. ODDIE presented petitions of General 0. M. l\litchell payments to the United States Governme.nt. Post, No. 69, of Reno, Nev.; Custer Post, No. 5, of Carson City, The price at which the power will be sold is left entirely to the dis­ Nev., Grand Army of the Republic; General 0. 1\I. Mitchell cretion of the Secretary of the Interiot•. The annual or periodical Corps, No. 27, of Reno, Nev.; Custe1~ Corps, No. 15, of Carson revenues received may be only sufficient to meet the contractual pay­ City, Nev.; Philip Kearny Corps, No. 85, of Virginia City, ments due the Government, or they may be in excess of such an amount. Ne-v.; and Gettysburg Corps, No. 122, of Tonopah, Nev., If they are not in excess of such an amount, then the States of Arizona Womnn's Relief Corps; praying for the early enactment of a and Nevada will receive nothing from such revenues. If they are in law providing a minimum pension of $75 per month for all sur­ excess of such amounts necessary to meet the contractual payments due viving Civil War veterans, a minimum of $125 per month for the Government, then the Government takes its 62% per 'cent of such those so incapacitated as to require an attendant, and a mini­ excess revenues and the balance of 37% per cent is divided equally be­ mum of $50 per month for all widows of deceased soldiers of tween the States of Arizona and Nevada. the Civil War, regardless of the date of marriage, which were Some who are unfamiliar with the facts surrounding the initiation of referred to the Committee on Pensions. this legislation and the conditions on the Colorado River have naturally

LOAXS TO NICARAGU~ inquired why should the States of Arizona and Nevada be granted any l\Ir. TYDINGS. Mr. President, I ·have a short statement revenues. At the time that Congress bad under consideration the oil dealing with loans by this Government to Nicaragua, which I leasing bill and it was proposed to pay to the State where the oil lands ask the clerk to read from the desk. I further ask that it may were leased by the Government 37% per cent of the royalties received be treated as a petition and referred to the Committee on by the Government the question was asked, Why should the States re­ Foreign Relations after it shall have been read. ceive any royalty paid to the Government? Congress in such act did The PRESIDING OFFICER (l\lr. FEss in the chair). With­ pass such provision and did allow the State 37% per cent of the royalties out objection, the Secretary will read, as requested. received, and answered such questions as follows: The statement was read and referred to the Committee on Congress had the legal right to adopt a conservation policy. The Foreign Relations, as follows: Government owned the public lands in which the oil was located. Con­ gress had authority to withdraw such lands from entry and acquisition In November, 1921, a loan of $17i:i,OOO was made by this Gol'"ernment by private owners. Congress did this. While it was a good policy, it to Nicaragua, payable $5,000 per month. They defaulted in Nowmber ~njured the State in which the policy was put in force and efl:'eet because !!6. Ieaying $8,500 interest and about $!:!5,000 due on the transaction. it witbdt·ew ·forever from the possibility of taxation such lands and In spite of this over $400,000 more was loaned by our Gov«.>rnment, mineral resources. The State's ablity to maintain through taxation of which Nicaragua has paid $141,221.15, leaving a balance due and the State government was thereby depreciated. States can not exist payable of about $300,000. unless there is property to tax. Whilst there was no legal obligation In reporting these transactions the Secretary of the Treasury re­ on the part of Congress to grant any royalties to the States, they con­ ports for the fiscal year ending June 30, 1926, page 579, in a table sidered it just and right that it should be done to compensate to S(>mc usmtlly supposed to cover only interallied debts-and using the act of extent the State for the loss of potential taxable property. July V, 1918, as his authority-nuder "Obligations received for sur­ This amendment is based upon the same theory, aud Congress is plus supplies sold on credit," an item under Nicaragua. of $166.604.14, asked to extend to the States th~ same policy under this act. This with a payment of $139,721.15, leaving a balance due of $26,882.99. In entire legislation is based upon an agreement between the seven Colo­ his annual report next year, page 628, under the same headings, the rado River Basin States, known as the seven-State compact, and some­ Secretary of the Treasury reports as obligations received for surplus times called the Santa Fe compact. supplies sold on credit to Nicaragua , $431,849.14, with payments Why does Congress in this legislation ratify the seven-State compact? amounting to '141,221.15, leaving a balance of $299,127 due the Under the water laws of the Western States, one who appropriate and United States Government. In this last amount I understand there is puts to use water obtains a vested right. If citizens of one State first involved a transaction between the "\"'i·ax Department and Nicaragua, appropriate the waters of a stream and citizens of anotller State higher whereby we let them have munitions of war Yalued at $!!66,0r>9 for 53 up the stream later use such water and depreciate or interfere with notes of $5,000 each, maturing monthly, beginning January 31, 1929, the prior usen in the lower State, the lower State can enJOlll the with 6 per cent interest ns matul'ity. hamarro, minister, signed the upper Stute and through it the nsers of the upper State from the notes. usc of such water. BOUL!>ER DA~I The upper States of the Colorado River Basin will not be able to :llr. PITTMAN I present a letter that I have written to the use the waters of the Colorado River for a numbet· of year , and they chairman of the Committee on Irrigation and Reclamation of realize that if they aid in the building of dams in the lower basin and th€' House, which I ask may be printed in the REX'ORD. in the use of the waters by Arizona, California, and Nevada that such There being no objection, the letter was ordered to be printed States might get a vested right in and to all of the waters of the in the RECORD, as follows : Colorado River and thereby forever prevent any further use of such BOULDER DAM waters by the upper States. So it was agreed between the seven UHITED STATES SEXATE, States that half of the waters of the river should forever be reserved lVaBhinglon, Mar-ch l!i!, 1928. to the upper States and half of the waters of the river turned down for use of the three lower States. Hou. ADDISON T. SMITH, Ohairman Oommittee on Irrigation and Reclamation, It was understood, of course, that there would be an ag1·eement Ho11se of Rep1·esentati1:es, Was11ington, D. C. between the three lower Stat~s as to the division of benefits of the MY DEAR MR. SMITH: I hav-e been informed that your committee, waters to the three lower States, because if such division were not or a subcommittee thereof, are considering amendments to be proposed had then the State of Californ~a, w4ich is in a more advantageous ' by your committee on the floor of the House to H. R. 5i"i3, commonly position to use the water at present, might appropriate all of the known as the Boulder Dam bill. 1.'his is substantially the same bill water allocated to the three lower States. In other words, the object of that was reported out of the Senate Committee on Irrigation and the agreement was to protect each of the seven States in the opportunity Reclamation on March 20, being S. 728.. for equal benefits from the use of the waters of the Colorado River. The Senate committee, upon my motion. amended S. 728 by inserting There are three main benefits to be derived from the use of water, on page 6 of said bill, lines 5 to 12, inclusive, the following: namely, for potable purposes, reclamation, and the generation of ··If during the period of amortization the Secretary of the Interior electrical energy. Nevada's lands, being ~lgber than the reservoir, can shall receive revenues in exces of the amount n e ce~:~sary to meet the use very little of the water, but she could use as much of the water periodical payments to the United States as pronded in the contract for the generation of electrical energy as either Arizona or California. or contracts executed under this act, then immediately after the set­ Now, there is no question that the Colorado River is a navigll.ble tlement of such periodical payments, he shall pay to the State of stream at the point where the dam is to be built. if it were not a Arizona 18%, per cent of such t>xce s revt>nues and to the State of navigable stream, or not subject to being made navigable, then the · Ne>ada 18%, per cent of such exc«.>ss revenue ." Government, under this act, would ha>e no authority to build the dam. :Ko such amendment, · I am aclvisecl, was considered by your com­ If it is a navigable stream, then the State of Nevada owns the bed of mittee prior to reporting out H. R. 5773. the stream to the middle of the river. The Sf'nate committee discussed this amendment off and on for sev­ There is no doubt that under . the law Nevada has sovereignty oyer eral weeks before adopting it. In the circumstances I know that you the water within her borders. This ownership or the land and this will not collSider it presumptuous upon my part to state the reason that sovereignty over the water would entitle Nevada against any other urged the Senate committee to adopt such amendment. State or muniripality or corporation or individuQl to charge for the The Senate bill provide · that the Secretary _ot the Interior shall use of its lands for dam purposes or the use of its water for power enter into contracts for hydroelectric energy under such terms and purposes. If anybody else except 'the Fed«.>ral Government built the 1928 CONGRESSIONAL RECORD-SENATE 5277: dam and the appurtenant works, such dam and appurtenant works port, and for other purposes, and I ask for its immediate would be subject to taxation by the State, and such taxes would be far consideration. more than it is reasonable to suppose that the State can ever recei>e .Mr. BRATTON. Let it be read. out of the revenues provided in the amendment. The joint resolution was read, as follows: We do not contend that the State has the power to tax the property of the Federal Government or the hydroelectric energy generated any Resolt•ed, etc., That all articles that shall be imported from foreign countries for the sole purpose of display at the Pacific Southwest Ex­ more than it would have the right to tax the Government's oil la.nds position to be held during the year 1928 for the purpose of com'­ o.r the royalty received by the Government from the leasing of oil lands. memorating the landing of the Spanish padres in the Pacific Southwest But the United States Government, for the benefit of the whole Nation and the opening of the Long Beach, Calif., world port, upon which there and in the carrying out of the national policy, deprives the State of shall be a tariff or customs duty, shall be admitted free of the pay­ Nevada of a most valuable dam site. In fact, the only dam site of its ment of duty, customs fees, or charges, under such regulations as the character on the lower Colorado Ri.ver. It does this for the purpose of Secretary of the Treasury shall prescribe; but it shall be lawful at any carrying out its constitutional authority to regulate commerce and time during the exhibition to sell any goods or property imported for improve navigation, and no State can complain against this. It does and actnally on exhibition, subject to such regulations for the security not ·undertake this enterprise for the purpose of engaging in business of the revenue and for the collection of import duties as the Secretary and making a profit. As a matter of fact, on the Mi sissippi River it of the Treasury may prescribe : Provided, That all such articles when ·, will do all of a similar kind of work for flood control at the Govern­ sold or withdrawn for consumption or use in the United States shall ment's own expense without reimbursement, and properly so. be subject to the duty, if any, imposed upon such articles by the revenue All that the proposed amendment provides is that a portion of t.he laws in force at the date of withdrawal ; and on such articles which excess revenues over and above the amount necessary to repay the Gov­ shall have suffered diminution or deterioration ft·om incidental handling ernment for its investment, principal and interest, shall be paid to Ari­ and exposure, the duty, if payable, shall be assessed according to the zona and ~evada in the nature of a compensation in lieu of the loss of appraised >alue at the time of sale or withdrawal, and the penalties taxable property through the acts of the United States Government just prescribed by law shall be enforced against any person guilty of any the same as is done under the oil leasing law and the forest reserve law. illegal sale, use, or withdrawal of such articles. We believe that Congress, when it understands the situation-for SEC. 2. The beads of the various executive departments and inde­ there have been many misrepresentations of ou_r position-will establish pendent establishments of the Governm'ent are authorized to collect, a policy that will do justice in this particular case. prepare, and lend, upon request, to the ~aci:fic Southwest Exposition, Sincerely, articles, specimens, and exhibits which, in their judgment, it may be KEY PITTMAN. in the interest of the United States to exhibit at such exposition : REPORTS OF COMMITTEES Pr&vided, That the furnishing of such articles, specime.ns, and exhibits :Mr. KING from the Committee on the Judiciary, submitteu shall be without expense to the united States. a report (No: 610) to accompany the bill (S. 2679) to limit the The VICE PRESIDENT. I s there objection to the present period for which an officer appointed with the advice and con­ consideration of the joint resolution? sent of the. Senate may hold oveT after his term has expired, There being no objection, the joint resolution was consid­ heretofore reported by him from that committee with an amend- ered as in Committee of the Whole. m~ . The joint resolution was reported to the Senate without Mr. CAPPER, from the Committee on the District of Co­ amendment, ordered to a third reading, read the third time, lumbia to which was referred the bill (S. 2366) to amend sub­ and passed. chapte{· 1 of chapter 18 of the Code ?f L~WS; fo~ the District SENATOR FROM IOWA of Columbia relating to degree-conferrmg mstltutions, reported l\lr. FESS (for Mr. DENEE....,), from the Committee to Audit it with amendments and submitted a report (No. 611) thereon. and Control the Contingent Expenses of the Senate, to which Mr. NORRIS, from the Committee on the Judiciary, to wh~ch was referred the resolution (S. Re. . 175) reported by .Mr. were referred the following bills, reported them each With SHORTRIDGE from the Committee on Prh"ileges and Elections on ·amendments and submitted reports thereon: the 21st instant, reported it favorably with an amendment. .A. bill ( s. 726) to make it the duty of certain courts of the The Senate, by unanimous consent, proceeded to consider the United States to render decisions within certain maximum resolution. limits of time (Rept. No. 612) ; and Te amendment was, in line 3, after the word " year," to .A. bill (S. 1748) relating to the qualifications of jurors in the strike out " 1927" and insert " 1928," so as to make the resolu­ · Federal courts (Rept. No. 613). tion read: Mr. NORBECK, from the Committee on Public Lands and Surveys to which was refen-ed the bill (S. 2910) granting to Resol-ved., That the Secreta1·y of the Senate ls hereby authorized and I the State of South Dakota for park purposes the P.,ublic lands directed to pay from the appropriation for expenses of inquiries and within the Custer State Park, S. Dak., reported it without investigations, fiscal year 1928, contingent fund of the Senate, to Bon. amendment and submitted a report (No. 614) thereon. SMITH W. BROOKHART, a Senator from the State of Iowa, $1.725, Mr. Mc~.A.RY, from the Committee on Agriculture and For­ balance in full reimbursement for all expenses incurred in defense of estry to which was refeiTed the bill (S. 3162) to authorize the his right to a seat in the Senate resulting from the contest of the 1924 irnprbvement of the Oregon Caves in the Siskiyou National election of .a Senator from the State of Iowa. Forest, Oreg., reported it without amendment and submitted a The amendment was agreed to. report (~o. 615) thereon. The resolution as amended was agreed to. l\Ir. SHEPPARD, from the Committee on Military Affairs, to which was referred the joint resolution (H. J. Res. 118) author­ SE.XATOBIAL CAMPAIGN EXPENDITURES-LIMIT OF COST izing the Secretary of War to award a duplicate. Congressional Mr. FESS, from the Committee to Audit and Control the 1\Iedal of Honor for the widow of Lieut. Col. William J. Sperry, Contingent Expenses of the Senate, to which was referred the reported it with an amendment and submitted a report (No. resolution (S. Res. 178) submitted by Mr. REED of Missouri on · 616) thereon. the 22d instant, reported it favorably without amendment, and Mr. BL.A.L'-i"'E, from the Committee on ~Iilitru.~y Affairs, to it was considered by unanimous consent and agreed to, as which was referred the bill (H. R. 1530) to amend the milita1·y follows: record of William F. Wheeler, reported it with an amendment Resolved, That the Special Committee Investigating Expenditures in and submitted a report (No. 617) thereon. Senatorial Primary and General Elections under authority of resolu­ He also from the same committee, to which was refen-ed tions of the Senate agreed to :Yay 17, 1926, January 11, 1927, and the bill (:H. R.. 3466) for the relief of George A. Winslow, re­ reuffirmed December 12, 1927, hereby is authorized to expend from the ported it without amendment and submitted a report (No. 618) contingent funds of the Senate $65,000, in addition to the amounts here­ thereon. tofore duly authorized. He also, from the same committee, to which was refeiTed the bill (II. R. 6364) for the relief of Edward Tigh, reported El\"'"ROLLED BILLS AND ,JOINT RESOLUTION PRESENTED adversely thereon. .J\Ir. GREENE, from the Committee on Enrolled Bills, re­ ported that this clay that committee presented to the President E~TRY OF EXHffiiTS FO:R PACIFIC SOUTHWEST EXPOSITION of the "Cnited States the following enrolled bills and joint :Mr. SMOOT. From the Committee on Finance I report back resolution : favorably, without amendment, the joint resolution (H. J. Res. 8.1665. An act to authorize the board of park commissioners 126) to provide for the entry under bond of exhibits for dis­ of the city and county of San Francisco to construct a recreation play at the Pacific Southwest Exposition to be held in com­ pier at the foot of Van Ness ~I\ venue, San Francisco, Calif.; memoration of the landing of the Spanish padres in the Pacific S. 3343. An act for the relief of the Arapahoe and Cheyenne Southwest and the opening of the Long Beach, Calif., world Indians, and fo1· other purposes; and 5278 OONGRESSION AL RECORD-SENATE llAROH 24 S. J. Res. 31. Joint resolution to provide that the United States at a cost to the Federal Government of $100,000-$60,000 before extend to the Permanent International Association of Road the trial was reached and $40,000 dming the trial. Congresses an invitation to hold the sixth session of the asso­ If conditions are crooked, as is alleged by people from whom ciation in the United States, and for the expenses thereof. I am receiving letters, I think the Government owes it to the FEDERAL LAND BANK OF COLUMBIA, S. 0. people of South Calorina to go to work and straighten out that crookedness and turn these men out if they are crooked. More­ Mr. BLEASE. Mr. President, on the 24th of February last over, I think the Government owes it to itself, if it has men in I submitted a resolution asking for the examination of the that. bank down there who are corrupting it, who are doing an Federal Land Bank of Columbia, S. C. Since that time some injustice to the farmers, to take action to end that condition. other gentlemen have been taking an interest in the matter. I I think that all the members of this body, regardless of their notice that Representati•e STEVENsoN, of South Carolina, a political affiliations, should want to clean out the bank and member of the Hou e Banking and Currency Committee, has restore confidence in it, so that the people of the State may not called for certain records which he desires to be placed before only be benefited thereby but that the people of the Nation may his subcommittee. I wish to call this matter to the attention know that we are not interested in having slumber in a commit­ of the Senate Committee on Banking and Currency and ask tee room a resolution which is designed to do something that is that it report, one way or the other, the resolution which I for the best intere ts of the whole country. If there is no cor­ submitted. ruption. let the people know it and let them have their confi­ I desire to put into the RECORD some proofs to support the dence restOred in this bank and its management. On the other irregularities, to say the least of it, if not corruption, that hand, if there is corruption, let us see to it that the men who are now going on and have been going on in that bank for the are responsible for it are turned out and put the bank back into past couple of years. I understand that the man who is at the po ition where it belongs, so that it may not only be a clean, the head of that bank was formerly assistant superintendent clear-cut institution, but that it may serve the people as it was of the l!"'ederal penitentiary at Atlanta, Ga., and if he has had intended under the original enactment to serve them. any banking experience I have so fa1· not been able to ascertain Mr. FLETCHER. Mr. President, will the Senator yield for the fa.ct. a question? I desil·e to have printed in the RECORD, without reading, a The PRESIDING OFFICER. Does the Senator from South telegram from the Union County Aglicultural Credit Associa­ Carolina yield to the Senator fi·om Florida? tion, an editorial from the Beaufort ( S. C.) Gazette, eight let­ Mr. BLEASE. With pleasure.' ters, including a letter from Gertrude Matthews Shelby; also Mr. FLETCHER. If all the matters of which the Senator an article entitled " Is amortized farm loan a panacea or a complains have been under investigation by the courts down plague," by James B. l\Iorman. there, and certain people have been hied and convicted, what In this connection I call attention to the resolution to in­ will be accomplished by an investigation and going o•er that vestigate this bank which was introduced on February 24 subject by the committee? last; to the editorial on Federal intermediate credit bank Mr. BLEASE. The trial concerned conditions growing out in•estigation from Charleston (S. C.) News and Courier, of the operation of the bank at Beaufort, S. C. 'Vhat we want printed in the CONGRESSIONAL RECORD February 28, 1928, page to get at is the land bank at Colun1bia. I have asked the 3607 ; to letters in reference to Columbia ( S. C.) Federal Land proper department of the Government to investigate conditions and Intermediate Credit Bank in,estigation, printed in the there, and the officials of the department promised to do it, but CONGRESSIONAL REOORD March 8, 1928, pages 4340-4341; to the the only thing they have done is to send two little fellows and pamphlet published by Xeno W. Putnam, of Harmonsburg, Pa., one poor little girl from Beaufort to the penitentiary, making in reference to foreclosures by Federal land banks, published " goats" of them, to use a common expression, while the big in the CONGRESSIONAL REOORD l\!arch 12, 1928, pages 4554--4557; men in Columbia have not been touched. If the Trea ury De­ and to the resolution for investigation of Federal Farm Loan partment and the Attorney General's department are standing Bureau and subsidiaries, appealing in the CoNGRESSIONAL REC­ behind these people, and upholding them in their rascality, we ORD March 13, 1928, page 4606. desire to know it. It seems that they are not only doing that, Mr. President, in order to show that we mean what we sa.y but are working with the chairman of the committee trying to in this matter, and that it is not child's play, I wish to read keep him from bringing the resolution to which I have re­ a list of the witnesses whom I propose to offer if this investi­ ferred on the floor of the Senate. I know that is true. gation shall be authorized. They are as follows: 1\fr. FLETCHER. I am not taking any position with regard Hon. Ernest Cochran, United States judge for the eastern to the resolution offered by the Senator, but I was simply under district of South Carolina ; Hon. J. D. E. Meyer, United State the impression that the conditions of which he complains were district attorney for the eastern district of South Carolina; under investigation by the courts. Hon. Mendel L. Smith, former circuit judge and former speaker l\ir. BLEASE. The conditions to which I have referred were of the House of Representatives of South Carolina; Hon. not under inve tigation. Edgar A. Brown, former speaker of the Hou~e of Representa­ 1\fr. FLETCHER. And I was going to suggest to the Senator tives of South Carolina; Hon. David Mittie, alderman of the that all these data which he is submitting here, it would seem, city of Beaufort, S. C.; Hon. F. W. Scheper, banker, of Beau­ should be taken up with the committee rather than merely to fort; Hon. Burt Rodgers, clerk of the court of Beaufort, S. C. ; be put in the RECORD. Hon. Robert A. Cooper, recently of the Federal Farm Loan l\fr. BLEASE. If the committee will not let it be taken up, Board, who, I understand, was turned off by Mr. Mellon be­ the only recourse I have left is to bring it on this floor. I cause he would not do hi dirty work ; the Hon. J. Swinton can not make the committee do what I ask. I go to other Whaley, member of the South Carolina House of Representa­ committeemen about bills of mine but they do not pay any tives; Mr. Sam Edwards, of Latta, S. C., a farmer; Mr. R. J. attention to my requests; so they have driven me to the point Nesmith, farmer, of Nesmith, S. C.; Mr. J. 0. Devlin, farmer; where, in order properly to represent my people, I have got to Hon. William J. Thomas, of Beaufort, S. C., who is an attorney come on this floor. at law and was receiver for the defunct Beaufort bank; and I will say to the Senator from :F'lorida that I have a letter the Hon. Neils Christensen, former State senator from Beau­ here in which the writer refers to the Senator from Massachu­ fort, S. C. setts [l\fr. WALSH], whose name it is stated is on the letter­ Also, Mr. President, I ask to have referred to the committee, head of the National Committee for Cooperative Banks, who without printing in the RECORD, as it is too long for that, a was sent a copy of the report prepared. The writer of the report to the American Farm Bureau ·Federation by Gertrude lette·r says that information has been obtained rec ntly from Mathews Shelby, which accompanied the letter from her which Mr. Eugene Myer which she hesitates to put in a letter, and she I have asked to have printed in the RECORD. also refers to the Senator from Nebraska [Mr. HowELL], who The PRESIDING OFFICER. Without objection, the report made an investigation in connection with the Federal Farm referred to will be referred to the Committee on Banking and Loan Board. The writer also says that Senator NYE promised Currency. to publish the document referred to in the letter, and which I Mr. BLEASE. Mr. President, I hope that the committee will offered for printing as a Senate document some time ago. not think that the investigation which I have suggested is for Other channels have been resorted to, but it seems that we the purpose of doing anybody any injustice. It is not. The can not get any redress from any other source. Because the resolution I have introduced does not propose a political investi­ committee refuses to report a resolution-! do not care whether gation, but an investigation of the banking conditions down it reports it favorably or unfavorably-! do not propose to let there, brought about by the crooked dealings of certain bankers, the people at home labor under the impression that I Uil1 sit­ two of whom have been recently convicted in the Federal court ting here allowing these things to be done without a protest, and 1928 CONGRESS! ON AL RECORD-SEN ATE 5279 the only place I can make that protest as their representative is All local citizens are urged to back tbe local leaders in this fight to on this floor. secure justice to all concerneil. 1\!r. FLETCHER. I quite agree with the Senator that we ought to have the committee act on the matter. BEAUFORT, S. C., March 12, 1928. Mr. BLEASE. I appr'eciate the Senator's inquiry, and I do Bon. COLE L. BLEASE, not mean anything ).J€rsonal to him at all in anything I may Senate Olwmber, TVaahington, D. 0. have said. DEAR SENATOR BLEASE: I see by the newspaper that you have intro· The PRESIDING OFFICER (l\Ir. FEss in the chair). With­ duced in Congress a resolution looking forward to the investigation of out objection, the request of the Senato1· from South Carolina the actings and doings of the South Carolina Agricultural Credit Co., of will be complied with and the matter referred to by him will Beaufort, S. C., and the Federal Intermediate Credit Bank of Columbia, be printed in the RECoRD. S. C., in regard to the alleged $1,250,000 loss and to some $700,000 or The matter referred to is as follows: $800,000 loss to farmers in this community by the 1926 deal through the U::-nox, S. C., March 2:!, 19-28. officers of the South Carolina Agricultural Credit Co. Senator COLE L. BLEASE, In this transaction the Beaufort bank, of this place, was wiped out of Washington, D. 0.: existence, and many other concern , and R. C. Horne, jr., president of Regret notice from morning papers probability investigation Federal the South Carolina Agricultural Credit Co., and W. E. Richardson, pre. i­ land and intermediate credit banks of Columbia likely go over until dent of the Beaufort bank, were convicted in the Federal court and next session Congress. Failure intermediate credit bank function as sentenced to two :rears each in the Atlanta Penitentiary, and Miss intend re ulting in distress to many whom have for past two years Beulah Harvey, the secretary and treasurer of the South Carolina Agri­ paid in full, and have every right expect rediscount of their papers cultural Credit Co., was convicted along with them and sentenced to six this year, which is due to absolute inefficiency in Columbia office. months in the Aiken County jail. Since then W. E. Richardson and Should be in-restigated immediately to a.Jford relief. W. P. Jay, president and cashier, respectively, of the Beaufort bank, UNION COUNTY AGRICULTIJRAL CREDIT ASSOCIATIO;>;, have been convicted in the State court and sentenced to one year each W. W. ALMAN, Sec-retary-Treasttre·r. in jail or to pay a fine of $500. There are several other cases to be tried in the Federal court against some of these parties, including Rich­ [From the Beaufort Gazette, Thursday, March 15, 1928] ard on, Horne, and Miss Harvey, and se>eral more to be tried in the State court against the officers of the Beaufort bank. It seems to have PUSH IT RAPIDLY been a very complete deal. We are greatly interested in the proposed land-bank probe asked for As you· know I have been living here since 1900, practicing law, and by a resolution introduced in the by Hon. CoLE L. I think I am as familiar as anyone else with the community, and was BLEASE, of this State. The preamble of his resolution calls attention to appointed receiver for the Beaufort bank when it was closed, and also the great expense of the Government in recent criminal prosecutions, trustee in bankruptcy for the Tn1ckers Supply Co., a crate factory that the length o.f time consumed in that trial, and to statements brought was swamped in the transaction, and ha>e bad access to a good many out in the cour e of the testimony. We agree with the honorable Sena­ of the records. I am writing to offer you the benefit of any information tor that there appears to be plenty of grounds on which to base such a I can furnish you, as well as my services, in any possible way to bring resolution for an investigation. It would appear that all is not well in to light the truth of this awful calamity to our community. Columbia. With kindest regards, always, I am. We are equally interested in the bill introduced in the House by Con­ Yours very respectfully, gressman B. B. ILuu!l, of this district, calling on and requiring the (Signed) W. J. THOMAS. intermediate credit bank of Columbia to give credUs on all loans made You would likely unearth a bad state of aft'airs in these agricultural by farmers of this territory to the extent of net sale~ and deposits. We banks over the country. feel that such steps should immediately be taken inasmuch as it ap­ pears, though we may be wrong, that the intei·mediate credit bank was THOMA~. aware that the sales and deposits were available for a period prior to the closing of the Beaufort bank. Many of the witnes es in the recent [Letter from lJnion, S. C., March 19, 1928] criminal action stated that the officials of the Columbia ba.nk were '' in Hon. COLE L. BLEASE, on all." United States Senate, Washington, D. 0. The Go-vernment made a serious mistake when it undertook to enter DEAR SE~ATOR: I am writing you about a matter of considerable the banking game in competition with private capital and business. Importance to a good many tenant farmers of this county, and I am Judging from happenings in this community this effort has been a dis­ writing you at my own instance, inasmuch as I feel that you would astrous failure and resulted in hardships to many of our people. We like to be advised of matters seriously a.fl'ecting any considerable por­ urge immediate steps be taken to "take the Government out of busi­ tion of your constituency, and especially where a Federal institution is ness." It is not fair to legitimate money lenders, to banking institu­ concerned. tion , and bu iness. The Government control of railroads, though a war measru·e, was an ab olute· failure. The control of shipping bas been It ba been the custom of a good many of our tenant farmers nothing more than a mess. Now the banking game is turning out a who own their own stock to borrow money tbr{)ugb an association here known as the Union County Agricultural A sociation and get their dismal failure. In principle the intermediate-bank plan might be good, but our study papers handled through the Federal intermediate credit bank at· Columbia, S. C. It is my under tanding that the association, which of the situation lead.J us more and more to urge curtailment of its bas on deposit with the intermediate credit bank $10,000 of bonds, activities. Under the present system the farmers get money too easily. does not owe them anything. The association, as I understand, is They are then led to overproduce, which alway means for lower prices and losses. The overhead is entirely too great when they are forced to liable for all papers handled and discounted with the intermediate carry crop in.'urance to meet any losses suffered by the mortgagees-- credit bank. It would seem that if the intermediate credit bank was . intermediate credit bank; commission charges; interest on the loans, intended to be of any service whatever to the tenant farmer that a chattel mortgage co-rering a good mule, a wagon, farming implements, which are USllaliy twice as much as a farmer should have-and other a cow or two, and all crops produced by him during the current year costs of production make it almost impossible for him to come out of with the landlord's lien waived-and indorsed by the association­ the large end of the horn. The legitimate farmer ha a very small chance against the large farmer bolstered up with Government funds. should be good for $150 at least. Mr. Charles Mitchell has been carrying the :fight for two year . He .And yet, I am informed, the Intermediate credit bank bas refuse-d bas struck back at the intermediate credit bank and alleges, in effect, and refuses to handle such papers unl('SS the landlord makes a financHll the things set forth by Senator BLEASE and Congressman HAn.E in their statement and shows by such statement that be is worth enough to resolutions and bills. The case has got oft' on a question of jurisdiction guarantee the payment of the paper. of the courts. Thus far Mr. Mitchell, through his attorneys, Thomas & In other words, no papers are discounted that fall much under the Thomas, of the local bar, and Buist, of Charleston, have been successful standard of safety found in a gold bond. in the :fight. The intermediate credit bank, plaintiff in the action, has I do not know what you can do about this situation, if anything; succeeded in getting the cru e before the highest tribunal in the land. but as my infot·mation was that this bank was supposed to be of some The matter will be argued before the United States Supreme Court usefulness to the small tenant farmer I am writing you these facts. during the month. It behooves each and every Beaufortonian to stand It seems to me that this matter should be investigated, and while by Mr. Mitchell and his attorneys, give them of what information they I am prompted in writing you by the disappointment suffered by a good may have regarding transactions between the local associations and the many t('nant farmers and other farmers, yet I do not care for my name Columbia Government banks. A succe ful fight by Mr. Mitchell will, to be disclosed. in effect, accomplish the same things sought by the Government inves­ Witb kind regards, I am, tigations. We welcome the investigations also and hope they will Yours truly, be bad. 5280 CONGRESSIONAL RECORD-SENATE· !fARCH 24

[Letter received from two prominent farmers] ROBINSON~ standing against any further agitation of this Beaufort MADISON~ FLA.~ March fl~ 1928, situation. Hon. COLEMAN. L. BLEASE~ It seems to me the administration has committed itself to Arnold's United States Senate~ Washillgton, D. a. support. Certainly the Republican organization of the Senate seems DEAR SENATOR: Knowing your record for fair play, we decided to to have done so by blocking your resolution. This latter may be held send another letter to Mr. Stevens, secretary, the Federal Land Bank to be the result of a general policy against any further investigation of Columbia, S. C., and forward a copy to a Senator for each of the rather than definite opposition to yours. States covered by the activity or nonactivity of this bank. Hence the But the administration is tied to Arnold's record in South Carolina. attached letter. That is the point I would make with Senator ROBINSON. This year, feeling confident that the bank upon the showing made You have already called attention to what that record is. But wo.uld gladly increase the loan this small amount asked, we bought when hearings bring out tha ruthlessness with which their unjust four additional mules and went on with the construction of three new measures were carried out there must follow a resentment among all tobacco sheds and a small warehouse. However, the Hon. W. I!~. fair-minded men. For instance, when the Government investigators Stevens dismisses the application without any or no excuse. during the trial at Columbia threatened witnPsses for the defense in We really need this loan this year. He has been such an autocrat an effort to run them out of Columbia they were giving evidence or about the matter that we decided to call the matter to the attention an attitude that had characterized the dealings of the Treasury Depa rt­ of a representative o.f each of the three States, South Carolina, Georgia, ment and the Department of Justice in this whole affair. and :b~lorida. Thanking you again for your valuable aid in tills situation, I am, You will notice that he ueclined tl).e loan for $8,000 made years ago Very truly, when there have been three applications before his executive committee since, and each one waived aside with no intention on his part of assisting the farmer. [Letter from a prominent merchant] Han you any suggestion to make as to what should be our mo.ve? MIDDENDORF, S. C., Ma1·ch 11, 1928. Thanking you, and with high regards, we are, Senator COLE L. BLEASE, Very truly yours, ------Washingtatt, D. a. DEAR SENATOR: We are inclosing clipping from the State of 15th. We [Letter from a North Carolinian] would be glad to give information to . this committee of the banks of ASHEVILLE, N. C., March 11, 1928. Chesterfield County (G. W. Duvall, president of every bank in county) United States Senator CoLE BLEASE, as to trPatment the farmers are receiving through these banks in getting Washington, D. a. money through intermediate credit company to finance farms for 1925. DEAR Sm: Read in paper that you have started investigation of cer­ This committee should have our testimony, and if possible be prosPcuted. tain officials, and particularly of the Columbia (S. C.) Land Bank. This Hope that you will use your influence for the poor farmers that are is necessary, particularly of the methods that have been used by certain being robbed of their rights. With best wishes for your success, officials of the Farm Loan Board in spenuing the taxpayers' money in Sincerely, sending so-called examiners around the country to carry on a "black­ jacking " method of punishing every one who differs from the puny political theories of their own bunch. In many States thel' have been UNION, S. C., March 22, 19:!8. known to do this. D. J. Coughlin, the right-hand bower of Charles E. Hon. COLE L. BLEASE, Lobdell-who uraws $25,000 a year of the farmers' money, against the Unite(l States Senate, Washington, D. a. farmers' wishes-being probably the most notorious of all. The records DF.AR SE~ATOR : I beg to acknowledge yours of the 21st instant. I of the Committee on Banking and Currency show that Coughlin drew think the following parties would be willing to furnish affidavits along money from the Treasury as examiner at the same time he drew money the line suggcsteu, to wit: W. W. Alman, secretary Union County Agri­ from private land-bank funds in the office of the fiscal agent, to do cultural Association, Union, S. C.; J. M. Jeter, jr., director of the asso­ another piece of work, and Coughlin should now be headed for the same ciation, Union, S. C. ; T. l\1. Kitchens, farmer, Carlisle, S. C.; S. G. trip that his brother examiners wish to send Innocent South Carolina Layton, farmer, Union, S. C.; John D. Jeffries, jr., farmer, Jonesville, farm cooperative officers. But no, Coughlin has a stand-in, while the S. C. ; L. P. Thomas, farmer, Carlisle, S. C. ; Manning T. Jeter, Union, farmers of your State have a stand-out. S. C.; Aner, a temporary disadvantage in the amortization of ment generally available. I shall be glad to have you. a loan because the differential amortizement is always an additional In sen·ing this committee as a voluntary, unpaid secretary I have drain o.n a borrower's income. Neither the installment on an amortized bad pleasant as ocintion in regard to farm loan matters with a number loan nor the amount of interest on a straight mortgage changes during of Senators. I think fir t of Senator FLETCHEB, who will, I am sure, the loan period;. for a small loan of $1,000 the difference is only $10; answer any questions about me if you desire to ask him. I worked but on loans ranging from $10,000 to $50,000 the difference ranges from hard with Senator JIOWELL in 1924, when he compelled the Farm Loan $100 to $500 a year, according to the size of the loan. The difference Eoarc.l to produce proof of misappliance of farm loan funds and mis­ has to be provided e\ery year by a debtor, no matter bow unfavorable management. If you glance at this letterhead you will find Senator the crop or livestock returns may happen to be from season to season. lJAnD WALsH'S name-interesting especially because he is on the com­ It is not much consolation to a farmer to know that this difference is mittee. before which your resolution pends. He has a. copy of the always the minimum amount applied on his mortgage toward its reduc­ inclo ed r eport, which be wrote me he intended to read. I hope that tion if it becomes a burden for him to provide the amount which, if was not one of the intentions which makes a new cobblestone for unpaid, may lead to the loss of his farm. Under any circumstances )lephistophE>les's domain ! this additional amount i<1 an extra drain on his income and possibly I have certain information, gotten from Eugene l\Ieyer recently, that explains the inability of so many farmers to meet their installments might prove of interest to you, but hesitate to write it. I should be regularly. obliged if yon would send me such REci:mos as contain your speeches and It is evident from the foregoing that the amortization of farm mort· other material. gages is not a panacea. for all the ills, actual and imaginary, wbicb Sincerely, affect the welfare of the farmer. GERTRGDE l\IATHEWS SHELBY. Among other things, it was expected that farmers borrowing under the P. S.-In the )!arch, 19::!7, Farm and Fireside was published an inter­ Federal farm loan system would not only get into debt on an economical view of mine with Hu. ton Thompson that was another rather effective hasis, but would even do so profitably. The principle is enunciated by broad ide. Doubtless you can get it from the Congressional Library. authority of the Farm Loan Board as follows: If not, and you are intercF: teu, I will send you a copy. This related to "The Federal farm loan act is a law the intention of which is to the withholding of important information from 350,000 farmer stock­ make it possible for the farmel's to make money by borrowing money. holders, both by the banks and by the Federal board. Its intention is to place money within reach of the farmer on such G. M.S. terms as to convert the farm mortgage into a source of profit." These a.1·e very remarkable expectations, and the question is whether or not they have been realized. It would be rather unusual in the [Reprint from Farm Credits in the "Gnited States and Canada, by mortgage credit field to ha>e a credit bring to the debtor an increase James B . .Morman, :Macmillan Co.J of income in the face of all the drains on income which have been Is AMORTIZED FAlL\! LOA:-< A PANACEA OR A PLAG"CE? shown to attach to borrowing money on farm mortgage. The intention (By James B. Morman, economist, Federal Farm. Loan Board) may be good, but i ~ it likely to be fulfilled? The best advice that can be given to farmers is to keep out of debt. It is undoubtedly based on the provision of the farm loan act which The census of 1920 showed that 1,461,306 farm owners bad mortgages requires that loans ·hall be for productive purposes. But is not this on their farms; the number of mortgaged farms has undoubtedly expectation of a profit from running into debt based upon failure to greatly increased since. appreciate the fact that borrowing for productive purposes also men.ns What are tlle e debt-burdened farmers to do? To what extent would a corresponding burden of expenses, interest, and depreciation of capital amortization of their mortgages aid them? Does this plan of repay­ equipment during the continuance of a loan? ing loans give farmers larger incomes by reducing the amount of inter­ It is not the difference paid as interest but the debt itself which is the real burden on a farmer. The debt must be paid either by amol·tiza­ ~st they have to pay? If so, what has been this gain to them? To what extent bas the amortization plan of paying off mortgages been tion or in a lump sum. This bnrden, moreover, is intensified with the adopteu by money-lentling· agencie ? And, lastly, what are the lim­ lapse of time because of capital depreciation, a factor seldom taken into itations of this method of paying ofl' debts in protecting borrowers consideration. For long before 10 years have expired many forms of against foreclosure? These questions relate to the financial and social capital equipment will have been partially or wholly worn out anu the welfare of American farmers. farmer will be no better off as a result of his borrowing unless he .has been able to save and set aside annually sufficient to cover the value of By "amortization" is meant the method of repaying a loan with depreciation. interest by regular annual or semiannual installments covering a long period of time. An " installment" includes interest and part of i:he On account of the prl:'cariousness of agriculture and the present principal. A. borrower, therefore, pays off bis debt a little at a time difficulty of a farmer being able to save at all, he may be even worse off and pay interest only on the unpaid balance of the principal. The financially because lle will still be owing nearly 87 per cent of his amount of an installment is determined by the rate of interest and debt and al£o be under the necessity of replacing part of his capital equipment in ot·der to continue effective farm operations. It is plain, the numl>er of years for which a loan is granted. therefore, that there are grave financial limitations attached to borrow­ With a view of cutting down to some extent the amount of interest ing and repaying a loan under the amortization method so far as pro­ farmers would ha.ve to pay, Congress incorporated in the farm loan viding a farmer with the means of escaping the great burden and act (1916) the amortization plan of repaying loans. The act pro­ danger of debt itself i concerned. vides. that loans may ruu 5 to 40 years, at the option of the borrower. The conclusion is bome out by the result of the operation of the The direct benefit to a borrower in the interest be has to pay is shown Federal farm loan system. On ::\!arch 27, 1923, six years bad elapsed in th~ following comparison of this method with a straight mortgage Joan for the same amount, rate of interest, and period of loan: since t he first loan was made under this system. To-day three clearly tlefineu tendencies are noticeable: (1) Many borrowers have already Compnrison at the end of 34 years: increa. ed their mortgage indebtedness by additional loans when the Under straight loan plan- . 3-t interest payments of $60 each ______$2, 040. 00 farm appraisements warranted uch an increase; (2) many borrowers Principal unpaid------;------1, 000. 00 ba>e been unable to pay the installments on their loans and the Federal land banks are carrying a steadily increasing amount of delinquent 3, 040.00 Under amortization plan- payments; and (3) many farmers coming in as new borrowers are 34 installments. paying both interest and principaL 2, 338. 16 mortgaging their farm to pay off short-time or personal indebtedness incurred during the past few years as a result of unprofitable farm Saving______~---- 701.84 operations. During the 34 yem·s that the amortized loan is being repaid the These tendencies are plainly discernible in general rural credit condi­ total amount of money a borrower would pay back on a loan of $1,000 tions throughout the United States and they are corroborated i.n the would be $::!,338.16, of which $1,338.76 is interest and $1,000 principal. case of thousands of loans made through the Federal farm loan system. That is to say, a borrower pays in interest alone $338.16 more than the They are not very promising for the future of agricultural development. amount of his original debt of $1,000. Therefore the total toll exacted '.fhe Secretary of Agriculture has already warned the country of the by interest out of the labor and capital of a farmer, if his loan should danger of too easy credit conditions. The danger is in our midst and run the full 34 years, is nearly 134 per cent. The toll exacted by has not been remo>ed by the amortization of farm mortgage loans. In interest from the labor anc.l capital of a farmer on a straight mGrtgage fact, it is likely that this method has increased rather than decreased for 34 years would be 204 per cent. In either case the toll is enormous the danger. Thousands of f:umers have already become delinquent in and a constant drain on a farmer's income. their installments under the easiest method of repaying farm mort­ 'rhe annual installment on an amortized loan is always g1·eater than gages yet devi<>ed, so that it is evident that interest-bearing debt is one the interest payment on a straight loan. On a $1.,000 Joan the install­ of the greatest dangers to future improvement in agricultural conditions. ment is $70 as compared "\\;th $60 paid as interest. This difference That farmers' debts, in many cases at least, have not proven profit­ ($10} is applied in reducing the principal of a debt; with each' succeed­ able is endent from the fact that the amortization of loans h as not ing rear the amortizement on a debt is a little more until the loan is prevented delinquencies in the paym~nt of installments ; it is now endent entinly paid. that this method of repaying loans does not prevent tbe foreclosure of 5282 CONGR.ESSIONAL RECORD-SE~ATE ~lARCH 24 farms. Evidently the amortization of loans does not remove the tion for a road across the Kaibab Indian Reservation. I ask greatest danger of farm mortage debt. unanimous consent for tlle immediate consideration of the joint Neither the amortization method of rep~ying loans nor the beneficent resolution. · intention of Congress has been able to save farmers from the ·rear of In explanation I will say that $10,000 were appropriated in foreclosure. The policy which seems to have animatea friend and foe the last Interior Department appropriation bill fo1• this purpose alike is to fleece the farmer for all he is worth. Large numbers of indicated by the joint resolution, and the joint re-solution merely farms have been sold under the sheriff's hammer in behalf of Federal proYides that that $10,000 shall be immediately available for and joint-stock land banks as mortgages. The heartlessness of money the building of the road, which is to run across the Kaibab sharks is not unknown to the Federal farm loan system, for neither the Indian Reservation in the northern part of Arizona. If the farmet· who fails to pay an installment on his loan nor his local associa­ road is to be built, it i desired to have the money now so tion which has indorsed his mortgage can ward off the foreclosure pro­ it will be possible to build the road this year. . ceedings, as this policy is being mercilessly carried out by both kinds of 1\Ir. BRATTON. l\11'. President, do I understand that tlle land banks. joint resolution comes from the Committee on Appropriations? Taking a broad view of agricultural conditions as they have dev~loped 1\Ir. SMOOT. I was authorized after seeing a majority of during the past few years it is evident that farm mortgage credit bas not the committee to report it. It bad been previously referred to brought such great financial relief to farmers as was anticipated. While the committee-. some benefits have materialized as a result of the operation of the Fed­ l\Ir. BRATTON. I w·ondered when the committee had con­ eral loan system, the easier opportunities which farmers now have of sidered it. plunging deeper into debt are increasing their financial difficulties and l\Ir. Sl\IOOT. That is how it was done. (}angers. Debt can only be paid by farmers getting larger incomes. The PRESIDING OFFICER. Is there objection to the imme­ Of this be certain, credit can not enslave a farmer to debt and free diate consideration of the joint resolution? him from its shackles at the same time. There being no objection, the Senate, as in the Committee of That this danger is still imminent is evident from a glance at the fol­ the Whole, proceeded to con ·ider the joint resolution, which lowing table, prepared primarily for the purpose of showing the regular was read, as follows : drain on a farmer's income that occurs on long-time amortized loans and the enormous total toll of interest which is taken during the life Resolved~ etc., That the appropriation of $10,000 for the improve­ of a loan: ment and maintenance of the road across the Kaibab Indian Reserva­ tion, northern Arizona, .en route to Grand Canyon National Park, as Amount of clebt, total paid as interest, and semiann-uaz installments on anw1·tizea loans contained in the Interior Department nppropriation act for the fiscal year 1929, approved .March 7, 1928, shall be available for expenditure upon the approval of this resolution. Amount paid as interest Semiannual install- on debt ments The joint resolution was reported to the Senate without amendment, ordered to a third reading, read the third time, and Amount of debt passed. At 5~ per At 6 per At 5~ At 6 cent cent per cent per cent TAMPA BAY BRIDGE l\.Ir. DALE. From the Committee on Commerce I report back favorably without amendment Ho_use bill 9663, authorizing $1,000 •. ------­ $1,242.47 $1,304.23 $32.50 $35.00 $2,000_------~------.---­ 2,484. 94 2, 608.35 65.00 70.00 Herman Simmonds, jr., his heirs, legal representatives, and $3,000.------­ 3, 727.41 3, 912.56 97.50 105.00 assigns, to construct, maintain, and operate a bridge across $4.,000- . -.------.­ 4,%9. 88 5, 216.71 130.00 140.00 $5,000.------J-. ------­ 6, 212.35 6, 520.90 162. 50 175.00 Ta~pa Bay from Pinellas Point, Pinellas County, to Piney $6,000.------­ 7, 454.82 7, 825.09 195.00 210.00 Pomt, Manatee County, Fla., and I submit a report (No. 605) $7,000.-.------.­ 8,697. 29 9, 129. 27 227.50 245.00 thereon. I ask unanimous consent for the immediate consid­ ~.ooo.- .. ------9, 939.76 10,433.50 260.00 280.00 $9,ooo. ______------11,182. 23 11,737. 63 292.50 315.00 eration of the bill. $10,ooo ___ ------_____ ------12,424.70 13,041.86 325.00 350.00 There being no objection, the Senate, as in Committee of the $15,000 •.. ------.------­ 18,636.18 19,620.93 487.50 524. 57 Whole, proceeded to consider the bill. $20.000.-.------­ 24,848.16 26, 162. 2a 650.00 699.42 $25,000.-.------=------31,060.20 32,702.00 812.50 . 874.28 The bill was reported to the Senate without amendment, ordered to a third reading, read the third time, and passed. A study of this table will convince the most skeptical that amortiza­ SUWANNEE RIVE& BRIDGE tion of farm mortgages is not a panacea for the burden of debt. Two things are especially noticeable: (1) That in each case a bor­ Mr. DALE. From the Committee on Commerce I report back rower pays much more as interest than the amount of the debt itself; favorably without amendment Senate bill 3173, authorizing the and (2) that the drain on ·a borrower's income through the payment of St. Johns River Development Co., a corporation of the State an installment every six months, while not heavy on small loans, of Florida, its successors and assigns, to construct, maintain becomes a real burden when the debt is large. and operate a bridge across the Suwannee- River at a point From this drain on incomrs," approved March 23, 1906, and to that unhappy event. Even if a Secretary of War, either the State of Florida, any political subdivision farmer is able to pay his installment regularly, without making any ad­ thereof within or adjoining which any part of such bridge is located, ditional payment on the reduction of his debt, the deterioration of or any two or more of them jointly, may at any tim'e acquire and take capital equipment, the gradual loss of soil fertility, and the approach over all right, title, and interest in such bridge and its approaches of old age which lowers a bonower·s efficiency-these and other factors and any interest in real property necessary therefor, by purchase or by have a tendency to perpetuate a mortgage indefinitely, as it has done in condemnation, in accordance with the laws of such State governing the Ge-rmany for many generations, and to bind farmer debtors with acquisition of private property for public purposes by condemnation shackles which have been made easy to forget but exceedingly difficult or expropriation. If at any time after the expiration of 25 years to remove. This is the prospective heritage of the children of farmers after the completion of such bridge the same is acquired by condemna­ who have long-time amortized mortgages on their farms. tion ot· expropriation, the amount of damages or compensation to be allowed shall not include ::;ood will, going value, or prospective revenues ROAD ACROSS KAIBAB INDIAN RESERYATIO;s-, .A.IUZ. or profits, but shall be limited to the sum of (1) the actual cost of l\lr. SMOOT. From the Committee on Appropriations I re­ const:J:ucting such bridge and its approaches, less a reasonable deduction port back favorably~ without amendment, the joint l'esolution for actual depreciation in value; (2) the actual cost of acquiring such (H. J. Res. 245) to make immediately available the appropria- interests in real property; (3) actual financing and promotion cost, 1928 CONGRESS! ON AL RECORD- SENATE 5283 not to exceed 10 per cent of the sum of the cost of constructing the and approaches thereto across the Cboctawhatchee River, at a point bridge and its approaches and acquiring sucll intere t in real nroperty ; suit~ble to the interests of navigation, at or near a point where Sta te and (4) actual expenditures for necessary impro>ements. Road No. 10 crosses Choctawhatchee River, Fla., in accordance with SEc. 3. If such bridge shall at any time be taken over or acquired the provisions of the acf entitled "An act to regulate the construction by the State of Floriua, or by any municipality or other political sub­ of bridges over navigable water·s," approved ::\larch 23, 1906, and division or public agency thereof, under the provisions of section 2 of subject to the conditions and limitations contained in this act. this act, and if tolls are charged for the use thereof, the rates of toll SEC. 2. After the completion of such bridge, as determined by t he shall be so adjusted as to provide a fund sufficient to pay for the Secretary of War, either the State of Florida. any political subdivi ~ ion Teasonable cost of maintaining, repairing, and operating the bridge and thereof within or adjoining which any part of such bridge is located, its approaches under economical management and to provide a sinking or any two or more of them jointly, may at any time acquire and t ake fund sufficient to amortize the amount paid therefor, including reason­ over all right, title, and interest in uch bridge anr, State and is hereby, authorized to construct, maj.ntain, and oper.ate a bridge .of Florida." 5284 CONGRESSION.A_L RECOR-D-SENATE l\IAROII 24

KANAWHA. RH"ER BRIDGE AT OR KEAR POINT PLEASAN"T, W'. VA.. reasonable costs of the construction, finru1cing, and promotion of tlle Mr. DA.LE. From the Committee on Commerce I report back bridge shall be conclusive for the purposes mentioned in section 2 of favorHbly, with amendments; Senate bill 3558, authorizing Point this act, subject only to renew in a court of equity for fraud or gros mistake. Pleasant & Henderson Bl'il1ge Co., its successors and assigns, to construct, maintain, and operate a bridge across the Kanawha SEc. 5. The rights to sell, assign, transfer, and mortga!;e all the lli1er at or near Point Pleasant, W. Va., and I submit a report rights, powers, and privileges conferred by this act is hereby grantl'd (!\o. 608) thereon. I a k unanimous consent for the immediate to Point Pleasant & Henderson Bi'idge Co., its succes ors and as igns, c0nsidera tion of the bill. and any corporation to which or any person to whom such rights, There being no objection. the Senate, as in Committee of the powers, and privileges may be sold, assigned, or transferred, or who Whole, proceeded to con._ ider the bill. shall acquire the same by mortgage foreclostu-e or otherwise, is hereby Tlte amendments were, on page 1, llne 5, after the name authorized and empowered to exercise the same as fully as though conferred herein directly upon such corporation or person. "Point Pleasant," to in~ ert "and '; on page 3, line 13, after the -word "fund," to insert "sufficient"; on page 4, line 4, after SEc. 6. The right to alter, amend, or repeal this act is herl'lly the name" P oint Plea .. ant." to insert "and"; on the same page, expressly reserved. line 20, after the name "Point Pleasant,"· to insert " and"; and The amendments were agreed to. on page 5, line 5, after the name "Point Pleasant," to insert The bill was reported to the Senate as amended, and the " and," so as to make the bill read : amendments were concurred in. Be it etwcted, etc., That in order to promote inter ·tate commerce, The bill was ordered to be engros.:ed for a third reading, :imprO\Te the Postal Service, and pt·ovide fo-r military and other purpm;es, .. read the third time, and passed. tlle Point Pleasant & Henderson Bridge Co., its successors and assigns, The title was amended 80 as to read: ".A bill authorizine: be. nnd is hereby, authorized to construct, maintain. and operate a Point Pleasant & Heuclerson Bridge Co .. its- succ:e··sor · and briuge and approaches thereto acros the Kanawha River, at a point assigns, to construct, maintain, and operate a bridge aC'l'Oi:iS the suitable to the intere!';ts of navigation, at or near Point Pleasant, Kanawha RiYer at or near Point Pleasant, W. Ya." W'. \a., in accordance witll the provisions of the act entitled "An act MISSISSIPPI RIVER BRIDGE to regulate the construction of bridges over navigable waters," approved 1\lr. DALE. From the Committee on Commerce I report back March 23, 1906, and subject to the conditions and limitations contained favorably, without amendment, Senate bill 3611, authorizing in this act. · the board of county commis ~ ioners of Itasca County, Minn.; to SEC. 2. After the completion of such bridge, as determined by the construct. maintain, and operate a free highway bridge across .Secretary of War, either the State of West Yirginia, any political sub­ tlle Mississippi River at or .near the north line of section 35, division thereof within or adjoinii1g which any part of such bridge is township 144 north, range 25 west, and I submit a report (No-. located, or any two or more of them jointly; may at any time acquire 609) thereon. I ask unanimous consent for the immediate and take over all right, title, and interest in such bridge and its ap­ consideration of the bill. proaches, and any interest in real property nece sary therefor, by pur­ There being no objection, the Senate. as in Committee of the chase or by condemnation or expropriation, in accordance with the laws Whole, proceeded to con. ·ider the bill, whi ·11 was read, as of such State governing the acquisition of private property for public follows: purpo ·es by condemnation or expropriation. If at any time after the expiration of 20 years after the completion of such bridge the same is Be it enacted, etc., That in order to facilitate interstilte commerce, acquired by condemnation or expropriation, the amotmt of damages or improve the Postal Sen·ke, and provide for military and other purpose», compensation to be allowed shall not include good will, going value, or the boat•d of commissioners of Itasca County, Minn., be, and is hereby, prospective revenues or profits, but shall be limited to the sum of (1) authorize(] to construct, maintain, and ·operate a free highwa~· bridge the actual cost of constructing such bridge and its approaches, less a and approaches thereto across the Mississippi Rinr, at a point suitable reasonable deduction for actual depreciation in value; (2) the actual to the intere»ts of navigation, at or near the nortll line of section 35, cost of acquiring such interests in real property; (3) actual financing township 144 north, range 25 west, in accordance with the provisions and promotion cost, not to exceed 10 per cent of the sum of the cost of an act entitled ".An act to regulate the construction of bridges over of constructing the bridge and its approaches and acquiring such inter­ navigable waters." approved Murch 23, 1906. ests in real property; and ( 4 ) actual expenditures for neces ary im- SEc. 2. There is hereby conferred upon the board of county commis- pro.-ements. _ . sioners of .Itasca County, Minn., all such rights and powers to enter SEC. 3. If such bridge shall at any time be taken oyer or acquired upon lands and to acquire, condemn, occupy, possess, and use real by the State of West \ii·ginla, or by any municipality or other political estate and other property needed for the location, construction, opera­ sul>division or public agency thereof, under the provisions of section tion, and maintenance of uch bridge and its approaches as are po - 2 of tllis act, and if tolls are thereafter charged for the use thel'eof, sessed by railroad corporations for railroad purposes or by bridge cor­ the rates of toll shall be so adjusted as to provide a fund sufficient porations for bridge purposes in the State in which such real estate or to puy for the reasonable cost of maintaining, repairing, and oper­ other property is situated, upon making just compensation therefor, to ating the bridge and its approaches under economical management be ascertained and paid according to the law of 8uch State, and the and to provide a sinking fund ufficient to amortize the amount paid proceedings therefor shall bP the same as in the condemnation or expropriation of property for public purposes .in such State. thet·efor, including reasonable interest and financing cost, as soon as SEc. 3. Tbe rigllt to alter, amend, or rep!"al this act is hereby possible under reasonable charges, but within a period of not to expressly reserved. exceetl 20 years from the date of acquiring the same. After a sinking fund sufficient for such amortization shall haYe been so provided, The bill was reported to the Senate without amendment such bridge shall thereafter be maintained and operated free of tolls, ordered to be engrosEed fur a third reading, read tlle tllirtl or tlle rates of toll shall thereafter be so adjusted us to provide a time, and passed. fund of not to exceed the amount necessary for the proper maintenance, Bll.LS I~TRODlJC'ED repair, and operation of the bridge and its approaches under economical Bills were introduc-ed, read the fir ·t time, and. by lmauimous management. An accurate record of the amount paid for acquiring consent, the second time, and referred as follows : the bridge and its approaches, the actual expenditures for maintaining, By 1\lr. BARKLEY: repairing, and operating the same, and of the daily toll collected A bill ( S. 3739) granting a pension to :Mary L. Guffey; to the shall be kept and shall be available for the information of all pei'Sons Committee on Pensions. interested. By Alr. JONES: SEC. 4. The Point Pleasant & Henderson Bridge Co., its succe sors A bill (S. 3740) for the control of floods on the Mi ~.._ i ss ippi and assigns, shall, within 90 day after the completion of such bridge, River from the Head of Pas.ses to Cape Girardeau, l\lo., and for file with the Secretary of War and with the Highway Department of other purposes ; to the C()mmittee on Commerce. the St..'lte of West Virginia, a sworn itemized statement showing the By Mr. STEIWER : actual original cost of constructing the bridge and its approaches, A bill ( S. 3741) for the relief of S. L. Robert to the Com· the actual cost of acquiring -any interest in real property neces ·ary mittee on Claims. therefor, and the actual financing and promotion costs. The Secretary By Mr. BROOKHART: of War may, and at tbe request of the High,yay Department of the A bill ( S. 3742) g1·anting an increase of pension to Sarah J. State of West Virginia, shall, at any time, within three years after Helton (with accompan~Ting pa}X'rs) ; to the Committee on tlw completion of such bridge, investigate such costs and determine Pensions. the accuracy and the reasonableness of the costs all<'ged in the state­ By 1\Ir. SIIEPPARD : ment of costs so filed, and shall make a finding of the actual and A bill ( S. 37-13) for the relief of C. N. l\fa rkle ; to the Com­ reasonnble costs of constructing, financing, and pwmoting such bridge; mittee on Claims. for the purpose of such investigation the said Point Pleasant & Hen­ B;\· 1\lr. CUTTlKG: derson Bridge Co., its succe •.ors and assigns, shall make availabfe A bill ( S. 3144) to authorizE:' the JeaBing. of public-land · for all of its records in connection with the construction, financing. and u~ as public a1iatiou tielU~; to the Committee .on Public Lands promotion thereof. The findings of the Secretary of War as to the and Survey~. 1928 CONGR.ESSIONAL RECORD-SEN1\.TE· 5285 By 1\Ir. SMOOT: A bill (S. 3772) granting an increase of pension to Zada E. A bill (S. 3745) to create an establishm'ent to be known as Stone (with accompanying papers) ; to the Committee on Pen- the national archives, and for other purposes; to the Committee sions. on Public Buildings and Grounds. Al!EXDME.~T OF WOBLD WAll VETER.ANS' ACT By 1\fr. BAYARD: A bill ( S. 3747) granting an increase of pension to Lina l\Ir. BRATTON inh·oduced a bill (S. 3746) to amend section Cahall (with accompanying papers) ; to the Committee on 500 of the World War veterans' act, 1924; as amended, which Pensions. was read twice by its title. By 1\lr. ODDIE: ·Mr. BRATTON. l\lr. President, I wish to make a brief A bill ( S. 3748) to amend the provision contained in the act reference to the bill. approved August 29, 1916, relating to the assignment to duty Under existing law, a "eteran of the World War may insti­ of certain officers of the United States Navy as fleet and tute a suit against the Veterans' Bureau in case a disagreement squadron engineers; to the Committee on Naval Affairs. arises between the veteran and the bureau in respect to a eon­ By 1\Ir. SHIPSTEAD : tract of insurance. Several suits of that character have been A bill (S. 3749) for the relief of Arthur C. Dean; to the filed throughout the country. Such suits are authorized under Committee on Naval Affairs. section 19 of title 1 of the World War veterans' act of 1924, as By 1\Ir. KING: amended. A bill ( S. 3750) conferring jurisdiction upon the Court of Under section 500 of that act, being a part of title 5 thereof, Claims to bear, examine, adjudicate, and enter judgment in the court rendering the judgment in any such case may aut}lOr­ any claims which the Miami Indians of have against ize the payment of a reasonable attorney's fee, not to exceed 10 the United States, and for other purposes; to the Committee per cent of the amount awarded to be paid counsel representing ·on Indian Affairs. the veteran. In the administration of the act it bas been found By Mr. REED of Missouri : that although a vete-ran may ha"e a just complaint against the A bill ( S. 3751) granting an increase of pension to :Margaret bureau, and although it is later determined by a court of com­ Reilly (with accompanying papers) ; to the Committee on petent jurisdiction that he was entil'ely right and the bureau Pensions. was altogether W1'ong, still, upon the successful outcome of his By Mr. FLETCHER: suit against the bureau, the court must fix a reasonable attor­ A bill ( S. 3752) to amend section 3 of an act entitled "An ney's fee, and is compelled to direct its payment out of the act authorizing the use for permanent construction at military judgment rendered in favor of the Yeteran. posts of the proceeds from the sale of surplus War Department That to me is entirely unjust and inequitable, and the bill I real property, and authorizing the sale of certain military reser­ have just introduced authorizes the court to fix a reasonable vations, and for other purposes," approved l\Iarch 12, 1926; to attorney's fee not to exceed 10 per cent of the award made, the Committee on Military Affairs. and expressly provides that it shall be paid ·bY the bureau, By Mr. JOHNSON: not out of the money adjudicated in favor of the veteran but in A bill (S. 3753) granting compensation to John Walter addition thereto. Davis ; to the Committee on Claims. Obviously, if a \eteran falls into a disagreement with the A bill ( S. 3754) granting an increase of pension to Ollie bureau and believes that he is entirely right and that the bmeau Young; and is utterly wrong, still, if he is compelled to obligate himself to .1\ bill ( S. 3755) granting an increase of pension to Henry S. pay a reasonable attorney's fee, either from his personal means Stockford; to the Committee on Pensions·. , or the sum recovered,- it has a deterring effect upon him. He By Mr. WHEELER: is not free and untrammeled. A bill (S. 3756) authorizing the expenditure of tribal funds If the bureau is wrong, and the court so determines, in my of the Assiniboine and Sioux Indians of the Fort Peck Reserva­ judgment, the bureau should pay the reasonable fee for counsel tion of Montana to employ tribal attorneys; to the Committee representing the veteran. That is what is intended to be on Indian Affairs. • brought about by the bill just introduced. A bill ( S. 3757) granting a pension to Henry Buck; and I call the attention of the chairman of the Committee on A bill (S. 3758) granting an increase of pension to l\lary P. Finance to the measure, and express the hope that it may have Wilson ; to the Committee on Pensions. the early attention of his committee in order that a gross wrong By l\lr. WALSH of Massachusetts: may be righted before the present session of Congress adjourns. - A bill (S. 3759) for the relief of Harry S. Smith; to the l\Ir. WALSH of Massachusetts. Mr. President, will not the Committee on Military Affairs. Senator state whether there is any precedent for legislation A bill ( S. 3760) for the relief of the Burtman Ornamental such as be proposes? II·on & Wire Works; to the Committee on Claims. 1\Ir. BRATTON. I do not recall for the moment any prec­ A bill ( S. 3761) granting an increase of pension to Catherine edent, but I do say that, regardless of precedent or the lack of Healy; and it, it is oppressive to enforce that kind of a law against a A bill (S. 3762) gr~nting an increase of pension to Jane A. E. veteran of the World War in determining whether be shall Murch ; to the Committee on Pensions. engage in litigation with the bureau under circumstances which By Mr. HAWES: be believes establish the justice of his cause and the injustice of A bill ~S. 3763) granting a pension to l\lary Morris (with the attitude of the bureau. In every case where the veteran accompanying papers); and is sustained, under existing law, the attorney's fee must be paid A bill (S. 3764) granting a pension to Julia Beckley (with out of the money awarded to the veteran. accompanying papers); to the Committee on Pensions. I call the attention of the Senator from Massachusetts to a A bill (S. 3765) for the relief of Charles G. Stoermer; and recent case that came under my observation. There a veteran A bill (S. 3766) for the relief of A. 0. Gibbons; to the Com­ rnstituted a suit of this kind against the bureau. He recovered mittee on Claims. approximately $7,000. The court granting the judgment de­ By Mr. SHIPSTEAD: termined that a fee of neru·ly $700 was reasonable and directed A bill (S. 3767) granting an increase of pension to Louise that it be paid out of the judgment so rendered. The court­ Ackley (with accompanying papers); to the Committee on could not do otherwise. The court is not subject to criticism. Pensions. He was compelled to yield to the strict mandate of existing law. A bill ( S. 3768) amending the Statutes of the United States The bill I have just proposed will authorize the court in such a with reference to copyright registration of designs; to the Com­ case to fix the attorney's fee not to exceed 10 per cent of the mittee on Patents. amount awarded and require that the bureau pay it in addition By 1\Ir. W.ATSO~: to the money awarded the vete.ran. A bill (S. 3769) granting a pension to Elizabeth C. Goody­ Mr. WALSH of Massachusetts. As a member of the com­ koontz; to the Committee on Pensions. mittee, I shall be glad to give the bill special consideration. By Mr. ASHURST: Mr. DILL. Mr. President, I think in some cases that have A bill ( S. 3770) authorizing the Federal Power Commission gone before the court if the attorney's fee had been chargf"d to issue permits and licenses on Fort Apache and White Moun­ against tbe Veterans' Bureau official who forced them into the tain Indian Reservations, Ariz.; to the Committee on Indian court, it would have been real justice. Affairs. Mr. McNARY. Mr. President, I demand the regular order. By Mr. NORBECK: The PRESIDING OFFICER. The bill introduced by the A _bill (S. 3771) vacating the alley between lots 16 and 17, Senator from New Mexico will be referred to the Committee on square 1083, District of Columbia ; to the Committee on the Dis- Finance. The regular order is demanded. trict of Columbia. Are tbere further bills or joint resolutions to be introduced 1 5286 CONGRESSIONAL RECORD-SENATE 1\fA.RCH 24 DECORATIONS FOR OFFICERS On March 22, 1928 : Mr. BLEASE. A few days ago I gave notice that I would S. 280~. An act authorizing E. K. Morse, his heirs, legal rep.­ submit an amendment to House bill 5898, to authorize certain re~entatives, and assigns, to construct, maintain, and operate a officers of the United States Navy and Marine Corps to accept bndge across the Delaware River at or near Burlington, N. J. such decorations, orders, and medals as have been tendered them On March 23, 1928.: by foreign governments in appreciation of services rendered. S. J. Res. 55. Joint resolution for the relief of Henry A. I send the amendment to the desk and ask that it be read, re­ Bellows; ferred to the Committee on Naval .Affairs, and printed. S. 496. An act for the relief of M. Zingarell and wife, Mary The amendment intended to be proposed by l\fr. BLEASE was Alice Zingarell; read, referred to the Committee on Naval Affairs, and ordered S.l133. An act for the relief of John F. White and Mary L to be printed, as follows: Whi~; · . On page 4, after line 21, insert the following : S. 1795. An act for the relief of Fannie 1\I. Hollingsworth ; "And be it further enacted, That all recommendations for decoration S. 2007. An act to authorize the Secretary of War to pay by the United States of America now pending before the War Depart­ officers and Filipinos formerly enlisted as members of the ment, Navy Department, or Marine Corps for services rendered during Nation~! Guard of Hawaii for field and armory training during the World War be considered by the proper boards or authorities, and the years 1924 and 1925, and to validate payments for such awards made in such cases as the conduct of those recommended shows training heretofore made ; them to be entitled and deserving of the same." S. 2021: ~n act extending and continuing to January 12, 1930, t~e prov1s1ons of an act authorizing the Secretary of the Inte­ EQUITABLE USE OF THE WATERS OF THE RIO GRANDE riOr to determine and confirm by patent in the nature of a deed Mr. KING submitterl a resolution (S. Res. 181), which was of quitclaim the title to lots in the city of Pensacola, Fla., ordered to lie on the table, as follows: approved January 12, 1925; and Whereas by act of Congress approved May 13, 1924, the President S. 2365. An act for the relief of G. W. Rogers. was authorized to designate three special commissioners to cooperate COOPERATION IN THE COAL INDUSTRY with the United States of Mexico for the purpose of studying the 1\lr. WHEELER. 1\Ir. President, I present a newspaper ar­ equitable use of the waters of the Rio Grande River below Fort Quitman, ticle, entitled "The barons on cooperation" relative to the coal Tex., with a view to the proper utilization of said waters for irrigation and other beneficial uses; and industry, which I ask may be printed in the RECORD. The1·e being no objection, the article was ordered to be Whereas by joint resolution approved March 3, 1927, said act of May printed in the RECORD, as follows : 13, 1924, was so amended that said commission was required also to study the question of the equitable use of the waters of the lower Colo­ THE BARONS ON COOPERATION rado River for the purpose of secut·ing information upon which to base Charles M:. Schwab, in his capacity as head of tbe bituminous in­ a treaty with the Government of Mexico relative to the use of the terests subsidiary to the Bethlehem Steel Corporation, yesterday tried waters of both the Rio Grande and the Colorado Rivers; and valiantly to "glad·hand" the Senate committee investigating the soft­ Whereas the President appointed three commissioners, Dr. Elwood coal problem'. Mead, Gen. Lansing H. Beach, and W. E. Anderson, to meet with repre­ Mr. Schwab attempted to turn questions directed to hjs views on the sentatives of l\lexico to consider the matters and questions involved validity of contracts with union labor by observing appealingly that in said act of May 13, 1924, and said joint resolution, and said com­ " I'm just a plain, blunt steel worker out of the mills. I can't answer missioners are now meeting and carrying on negotiations with commis­ hypotbetieal questions." At another stage this simple proletarian sioners of the United States of Mexico; and observed that he bad -.been too busy playing golf to keep up with the Whereas it is claimed that said commissioners are considering policies of his subordinates. Finally the bumble golfer-steel worker an­ whether additional water from the Rio Grande River supplied by tribu­ nounced his belief that " face-to-face meeting is the solution of the taries arising in Mexico may be had for use on lands in the State of labor problem." Texas, and the question of confirming claims made by American citizens All this siJnplicity and kindliness in high places is very touching, to the waters from said river heretofore used upon lands in the State but if the Schwabs, the Mellons, and the Rockefellers would transmit of Texas, and also the question .as to what, if any, water from the some of it to their managing executives the effect would be more im­ Colorado River Mexico or its nationals are entitled to; and pressive. The day before the appearance of this trio the Senate Inter­ Whereas the waters of the Colorado River have their origin in the state Commerce Committee had before it Mr. W. G. Warden, chair­ United States and not in Mexico and are l'equired for the domestic man of the Pittsburgh Coal Co. And his attitude towat·d " face-to­ needs of the citizens of the United States and for the irrigation of face" cooperation was hard-boiled to the lim'it. " I would not go into lands within the United States, and the granting of any of the waters any conference," he said, "which included representatives of the of the Colorado River to Mexico, except such limited amount as may United Mine Worket·s of America." As for the public, the third and have been used for the cultivation of lands in Mexico, would infringe most innocent party to the perennial coal dispute, it " doesn't need to upon t.be rights of tile United States and the sovereign States of be looked after," says Mr. Warden. · Wyoming, Colorado, Utah, Nevada, Arizona, New Mexico, and California, The barons of the coal indush·y are strong on talking cooperation. as well as many citizens of the United States, and would result in Their managers, by their actions, show on every occasion that the men irrep:uaiJle injury to the United States and said sovereign States and at the top are either powerless or insincere. It is a fair guess' that citizens of said States; that any treaty that might attempt to limit the the former of the two alternatives is not the truth. And the c6ndition rights of the United States or said sovereign States or citizens of the reached by the coal industry, a great public utility whictl 'protracted United States, or to interfere with their ownership of or their rights anarchy is intolerable, is not one in which palpable insincerity among in and to the waters of the Colorado River, would constitute an invasion its present owners will prove a winning game. of their rights : Therefore be it MESSAGE FROM THE HOUSE-ENROLLED BILLS AND JOINT RESOLUTION Resolved, That the Secretary of State and the Secretary of the SIG 'ED Interior be, and they are hereby, directed to transmit to the Senate A message from the House of Representatives, by Mr. Halti­ copies of all instructions given by said departments to said commis­ gan, one of its clerks, announced that the Speaker had affixed sioners, including communications made by the Reclamation Service to his signature to the following enrolled bills and joint I'esolution, said commissioners or persons interested in the negotia'tion of a treaty and they were signed by the Vice President: between the United States and Mexico regarding the waters of said H. R. 340. An act to authorize the incorporated town of rivers, and the disposition, allocation, or control of the same, and also Anchorage, Alaska, to issue bonds for the construction and copies of all communications· between the United States and Mexico equipment of an additional school building, and for other concerning the duties and work of said commissioners relating to the purposes; distribution, allocation, or control of the waters of said rivers. S. 3343. An act for the relief of the Arapahoe and Cheyenne PRESIDENTIAL APPROVALS Indians, and for other purposes ; and A message from the President of the United States, by 1\Ir. S. J. Res. 31. Joint resolution to pro\ide that the United Latta, one of his secretaiies, announced that the President States extend to the Permanent International Association of had approved and signed t:he following acts and joint reso­ Road Congresse-s an invitation to hold the sixth session of the lution: association in the United States, and for the expenses thereof. On March 19, 1928 : THOMAS W. CUNNINGHAM, RECUSANT WITNESS S. 2569. An act providing for horticultural experiment and Mr. KING. 1\o!r. President, a day or two ago I submitted a demonstration work in the semiarid or dry-land regions of the report from the Special Committee Investigating Expenditures United States. in Senatorial Primary and General Elections and stated at the On March 20, 1928 : time that I would later submit a resoluti~n and would ask S. 3292. An act provirling for turning over to the Ohio State its adoption by the Senate. Pursuant to the notice given I did Archaeological and Historical Society two dedication stones offer a resolution. I direct the Senate's attention to the {·eport, formerly a part of one of the locks of the Ohio ~nd E~ie C!t!!!!l. ~d also to the resolution, which I ask the clerk to read. 1928 CONGRESSIONAL RECORD-SENATE 5287 The PRESIDING OFFICER. The resolution will be read. because the Senator from West ·virginia, who gave attention The Chief Clerk read Senate Resolution 179, submitted by to the matter and p~·epared the first 1·eport asking for the Mr. KI!I1G on the 22d instant, as follows: arrest of Mr. Cunningham, is not here. My view was that as Whereas H appears from the report of the Special Committee Investi­ soon as the Senator from West Virginia returned, the com­ gating Expenditures in Senatorial Primary and General Elections that a mittee would meet and recommend the course suggested by witness, Thomas W. Cunningham, twice called before the committee the Senator from Nebraska. The action sought to-day by the making inquiry as directed by the Senate under Senate Resolution 195 committee is not intended as a fina~ disposition of the matter. of the Sixty-ninth Congress, declined to answer certain questions rela­ The law was violated by Mr. Cunningham when he refused to tive and pertinent to the matter then under inquiry: answer, and the Senate later will be asked to adopt such Resolv ed, That the President ·of the Senate issue his warrant com­ course in relation to the same as it may deem to be proper. manding the Sergeant at Arms or his deputy to take into custody the Mr. SHORTRIDGE. Mr. President-- body of said Thomas W. Cunningham wherever found, and to bring Mr. KING. I should like to add, if the Senator will pardon the said Thomas W. Cunningham before the bar of the Senate, then me, thaf I stated to the Senator from Pennsylvania [Mr. REED] and there or elsewhere as it may direct, to answer such questions yesterday that I intended to call up the resolution this morn­ pertinent to the matter under inquiry as the Senate, through its said ing and ask for its consideration. He said he would not be committee, or the President of the Senate, may propound, and to keep here, and I am betraying no conftdence when I say that he said the said Thomas W. Cunningham in custody to await further order of he would interpose no objection to the consideration of the resolution. I ask for the adoption of the resolution. the Senate. I Mr. NORRIS. Mr. President, I want to suggest to the Sena­ The Senate, by unanimous consent, proceeded to consider the tor from Utah also that the procedure which has been · taken re.~olution. ·is very proper, and ought to be taken; but I can not myself Mr. NORRIS. l\Ir. President, I should like to inquire of the see any reason why we should not do the same thing in this Senator from Utah whether this is the only proceeding the case that we did in the case of Mr. Stewart. committee are going to ask the Senate to take or whether, in A warrant was issued in Mr. Stewart's case and a habeas addition to this, they are going to ask the Senate to pass a corpus proceeding was asked for, and that is o:d its way in the resolution referring the matter to the district attorney of the ~ourts ; put, in addition to that, he was indicted before a grand District. Is it the intention of the committee to ask that? JU_rY, and he has pleaded before the grand jury, and he will be .Mr. KING. Mr. President, it is my understanding that later tr1ed before a jury in the District of Columbia on that ease; further action will be taken by the special committee, and the a.nd, if found guilty, without regard to the proceedings the Senate will be asked to take action looking to proceedings Senate is taking, be will be subject to imprisonment in jail. against l\Ir. Cunningham ·under the statute which makes it an If ¥r. Cunningham has violated the same law that Mr. Stew­ offense for a witness to refuse to answer pertinent and proper art violated, I do not myself understand why we should not do questions when such person is before a Senate committee. the same thing in his case. In other words, the moment he Just before the termination of the last session of Congress the refused to answer a proper question submitted by the investi­ Senator from West Virginia [Mr. GoFF], a member of the gating committee he committed a misdemeanor and that is not special committee, reported for the committee the contumacy being pushed in this proceeding. I do not understand why the of Mr. Cunningham and asked for a warrant of arrest. Owing committe~ are not ~sking for that. All we have to do is to pass to the jam-I will not use the word "filibuster "-in the clos­ a resolution refernng the matter to- the prosecuting attorney ing hours of the session the resolution offered by the Senator here, just as we did in the Stewart case, and then he will take from West Virginia was not considered. The report submitted care of it. on the 22d instant, and which is before the Senate, brings the matter down to date and asks for the same action by the Senate Mr. KING. Mr. President, I can only repeat what I said a as was recommended in the partial report presented by the Sen­ moment ago. The Senator has expressed the view which I en­ ator from West Virginia. tertain. I thought that out of deference to the Senator from As stated by the Senator from Nebraska [::\Ir. No:&&Is), in West Virginia _[Mr. GoFF], who is absent on account of illness, addition to the Senate taking steps to punish the witness for no further action would be taken at this time other than that contempt, it may refer the matter to the district attorney. unanimously agreed upon by tbe committee and which is em­ For the p1·esent the committee is only asking for the adoption bodied in the resolution before us. I shan' communicate with of the resolution just read and the proceedings called for there­ him as soon as he replies, and the committee no doubt, will consider the procedure suggested by the Senato~. / under. The witness Cunningham appeared before the com­ mittee on two occasions. He refused to answer proper and Mr. NORRIS. I have no objection to that, of course al­ pertinent questions submitted to him. r Upon the occasion of though the other proceeding is entirely separate from this.' his second appearance before the committee full opportunity Mr. SHORTRIDGE. Mr. President, for my own information was afforded him to answer the questions first asked of him and perhaps for the information of others, can the question of and to purge himself of his contempt, but he persisted in his the right of the committee to p1·opound a given question and obdurate course and adhered to his refusal to answer. The the right of the witness to answer or not, be determined i~ the committee unanimously report that his conduct warrants and proceeding which the resolution c-ontemplates? requires action by the Senate as called for in the resolution Mr. KING. Yes. now being considered. ... Mr. SHORTRIDGE. If that is so as a legal matter, why, Mr. NORRIS. I am not interrupting the Senator for the then, pursue the second course until the first is determined? purpose of criticizing the procedure. I have no objection to Mr. KING. He may, of course, sue out a writ of habeas this procedure; but there is also another thing that it seems corpus, the same as Mr. Stewart d.id. to me the committee ought to do, as we did in the case of Mr. Mr. SHORTRIDGE. Precisely. Stewart-!lot only have a warrant issued but, in addition, refer Mr. KING. But, notwithstanding the fact that the arTest of the matter to the prosecuting attorney here. Mr. Stewart was ordered by the Senate the question of the When the witness refused to answer the questions propounded violation of the statute was referred to 'tlie district attorney. by the committee, he violated a statute of the United States The two proceedings may go forward at the same time. Mr. which makes it a misdemeanor to do that; and there is a Stewart halted the action of the Senate by suing out a writ prosecution going on now in that case in addition to the issuing of habe!ls corpus, by which be seeks to test the legality of the of the warrant by the Senate. They are two separate things. proceedmgs of the Senate. The same question may be raised, What I wanted to call the committee's attention to was that howeYer, after indictment. it seemed to me that in the case of l\Ir. Cunningham we ought Mr. SHORTRrDGE. Quite apart from personalities or the to follow the same procedure that we followed in the case of merits of this case, I merely desire to suggest that if the legal Mr. Stewart, let this warrant be issued-! have no objection to matter involved can be determined in the first proceedin(J' as this resolution-and also refer the matter under the statute to contemplated by the resolution, why should a given witne;~ be the prosecuting attorney here, so that he can take the necessary put to two defenses in different courts or in diffm·ent tribunals? steps to present the matter to a grand jury. I ask that question for information only. Mr. KI~G. 1\Ir. President, that course has been taken in a Mr. NORRIS. Mr. President, there are two propositions number of instances. pending. Mr. NORRIS. But the Senator seems to be laboring under :i\lr. KING. It is in a ,.-ay an offense against two juriosdictions. the impression that the Senate must take one or the other of the . Mr. KORRIS. Yes. Suppose a warrant is issued in this two courses, and not both. case and the witness is arrested and brought before the Senate; Mr. KING. No; it may take both. and suppose he does not sue out a writ of habeas corpus -but Mr. NORRIS. Why not take both, then? answers the question he refused to answer before the 'com­ Mr. KING. I was about to say that; I did not now recom­ mittee.. He will purge himself in that proceeding, but he will mend the reference of the matter to the district attorney not satisfy the law. If we are always to pursue t_hat course, 5288 CONGRESSIONAL RECORD-SEN.ATE l\iAROH 24 then any committee of the Senate in an investigation can be Mr. SHORTRIDGE. Unless the cou·rts should determine held up and dela~·ed, and the witness who refuses to answer a otherwise. proper question can be cleared of all charges and of all diffi­ Mr. WALSH of Montana. That does not wipe out the crime. culty by later on coming before the Senate and answering the He could still be prosecuted. same question when, perhaps, it is too late to do any good in 1\fr. REED of Missouri. l\Ir. President, if the Senator from the matter. . Utah will pardon me, I think our course here is perfectly clear, The fact is that when he refused to answer a question that to pass this resolution and then, if the Senate sees fit, pass a was proper, submitted by the committee, right then he com­ subsequent resolution referring the commis ion of the crime, as mitted a misdemeanor, and that does not depend on whether he it is understood to be, to the grand jury for action with respect .eYer answers the question to the Senate or not. He could, of to that. At present the committee desh·es to have this resolu­ course, sue out a writ of habeas corpus and take the case to tion passed, and I presume will bring in another resolution the Supreme Court. If we waited to see what they would do covering the other phase of the matter. in that case, we would wait two or three years before we com­ 1\fr. KING. 1\fr. President, I stated a moment ago that the menced another suit, when as a matter of fact they are two delay in not asking for reference to the district attorney was entirely distinct kinds of action. One is to compel the witness out of deference to the Senator from West Virginia [l\ir. GoFF]. to answer, the other is to punish him for refusing to answer, I ask for the adoption of the resolution. and in satisfying the law as to one we do not touch the other. . The VICE PRESIDENT. 'I'he question is on agreeing to the If we always pm·sue this course, then witnesses who refuse to resolution. answer questions submitted by a committee of the Senate will The resolution was agreed to. always have the privilege of refusing to answer, delaying, hav­ The preamble was agreed to. ing a warrant issued, and then they can answer the question, in which case they purge themselves in that proceeding, and 1\Ir. KING. l\1r. President, I desire to make an observation the object of the Senate in making the investigation in nine in view of the disposition just made by the Senate of the Cun­ times out of ten will be completely frustrated. ningham case. At the same time that a report was filed in that In the case of Mr. Stewart, a warrant was issued, he was matter the committee submitted a report dealing with the Insull arrested, he sued out a writ of habeas corpus, and that is on and Schuyler cases. I would have asked consideration of this its weary way to the Supreme Court. But the Senate, at the report except for the absence of the senior Senator f~om \Vis­ ·same time it ordered his arrest, passed a resolution referring cousin [l\Ir. LA FOLLETTE]. As soon as he returns I shall the matter to the United States attorney for· the District of request the Senate to take action upon the same. · Columbia, under a specific statute applying particularly to that The PRESIDING OFFICER (l\lr. FEss in the chair). Morn­ kind of a case. The district attorney immediately laid the ing business is closed. The calendar under Rule VIII is in matter before the grand jury, and an indictment was secured, order. to which Mr. Stewa1·t has already been required to plead, and RADIO REGULATION--cONFERENCE REPORT ·in due time that case will be tried. 1\Ir. WATSON. 1\fr. President, I ask unanimous consent that · Mr. SHORTRIDGE. I am merely seeking to get my mind the Senate proceed to the further consideration of the confer­ clear as to the procedure. Suppose the Supreme Cou_r:t, having ence report on the radio bill. jurisdiction of the subject matter, should decide in the re­ There being no objection, the Senate resumed the considera­ spondent's favor; what would become of the proceedings in the tion of the report of the committee of conference on the dis­ District of Columbia? agreeing votes of the f\yo Houses on the amendments of the Mr. NORRIS. If the Supreme Court in the other case should Senate to the bill ( S. 2317) continuing for one year the po,Yers decide in his favor, the"n he will have won his case, and win: and authority of the Federal Radio Commission under the radio ·be entirely clear. · · · · · act of 1927. l\Ir. SHORTRIDGE. I was merely asking in order to have The PRESIDING OFFICER. The question is on agreeing to the law cleared up. the report. Mr. WALSH of Montana. Mr. President, will the Senator from Utah yield? ~1r. KING rose. Mr. KING. ' I yield. 1\lr. CURTIS. l\fr. President, I hope there will be no further 1\fr. WALSH of 1\lontana. I see no reason why the same pro- ·debate on the conference repm·t. \Ve would like to have it . cedure should not be taken in this case as was obser"Ved in the adopted. I understand that debate was ciosed on it day before case of Stewart.· The recalcitrant witness will be summoned yesterday and we were all ready for a vote at that time. There before the Senate to answer for his contempt of the Senate. is no opposition to the report, and I understand no one desires He may then, by agreeing to testify, purge himself of the con­ to debate it further. tempt, but, as suggested by the Senator from Nebraska~ _we Mr. KING. I shall detain the Senate but a few minutes. should not be compelled every week of the year to be c1tmg Mr. CURTIS. I simply stated what I understood the situa-. people for contempt. They ought to understand that this is a tion to be day before yesterday. crime, and the Btatute expressly provides for it. Mr. KING. I call the attention of the Senator from Wash· 1\lr. SHORTRIDGE. Who determines that it is a crime? ington [Mr. DILL] to a statement found, as I recall, in last Mr. WALSH of Montana. The Supreme Court determines it.J night's Times, as follows : Mr. SHORTRIDGE. I have some regard for the rights of, Commissioner 0. II. Caldwell, who vigorously protested against the the citizens- equal distribution clause as originally drawn, regards the revamped Mr. WALSH of Montana. The statute expressly provides for section as unworkable and feels that it will work a great hardship ou the certification of the facts to the district attorney for the radio listeners who enjoy distant program, as well as many broad­ District of Columbia. casters. Mr. NOllRIS. Let me read the statute: I want to ask the Senator if he indorses the view of Mr. Wllenever a witness summoned as mentioned in section 102- Caldwell that the measure as now presented is unworkable? That is, a "\\;itness testifying before a committee-- If it is, the report should be recommitted. I am not satisfied fails to testify, and the facts are reported to either House, the Presi- with the measure before us. It seems to me that it has in­ dent of the Senate or the Speaker of the House, as the case may be, firmities and uncertainties, and will not bring relief to the . shall certify that fact, under the seal of the Senate or House, to the people from the confused and chaotic radio. condition. district attorney of the District of Columbia, wllose duty it sllall be Jr. DILL. I do not indorse the views of Mr. Caldwell, and . to bring the matter before the grand jury for their action. I nm not surprised that they are so e~-pres::;ed, because, al- 1\fr. "\YALSH of l\Iontana. Let me remark that that can be though unconfirmed by the Senate and a mere administrative done at any time. officer, he sent out propaganda in the form of a letter to all Mr. NORRIS. Oh, yes. stations in his zone protesting against the provisions of the bill. Mr. wALSH of Montana. He may be brought before the, I think if there has been anything that he has done whic.h Senate and dealt with-as for contempt, and, at the con>enience: would show his unfitness for the position, that alone is enough. of the Senate or of the committee, the other procedure can be: l\Ir. KING. l\Ir. President, I am not.satisfied with the bill, but followed. • it seems evident that no other measure can be secured. Mr. SHORTRIDGE. If brought before the Senate, he could: One of the objections to the measure is that it seems to eon- then answer, and I suppose that would terminate the proceed-; firm pri>ileges enjoyed b~r the Radio Trust and its auxiliaries. ing; that is, if he came in good. faith. : The statement appearing in this morning's New York Times Mr. wALSH of Montana. In that case the Senate_. itself- is pertinent to this discussion and should attract the attention _would have no right whateYer to punish him. The power of: of the Senate in connection with bills now before committees, the Senate is coercive. He can be impri:::oned indefinitely until and perhaps the attention of the antitrust division of the he agrees to answer the questions propounded to him. Department of Justice. 1928 CONGRESSIONAL RECORD-SENATE 5289 [From the· New York Times, March 24, 1928] wave lengths and power, as well as to confirm the radio commissioners, R. C. A. IS OUT TO GET VICTOR PERFORMERS-NATION-WIDE CHAI~ FOR lies in the fact that this "trust" represents aggregate resources of TALKING MOVIES IS EXPECTE.D TO BE NEXT STEP WITH F. B. 0. AID-­ $3,000,000,000. ALL SILENT ON PRO-TECT--PURCHASE OF PHONOGRAPH COMPANY WOULI> · According to the testimony taken by the Senate Committee on NOT AFFECT WARNER VITAPHONE C0XTRACT Patents, the following are the assets of the five companies involved: .American Telephone & Te~egraph Co ______$1, 841, 102. 088 The Radio Corporation's reported impending acquisition of the Victor General Electric Co______428, 328, 764 Talking Machine Co., following the Radio Corporation's purchase of Westinghouse Electric & Manufacturing Co______226, 961, . 5~0 stock in F. B. 0., a film producing and distributing organization, was United Fruit Corporation______203, 821. 287 regarded in amusement circles yesterday as the final link in what is to Radio Corporation of .America______61, 976, 432 be the greatest chain for the production, distribution, and exhibition Now, it is announced that the Victor Phonograph Corporation, with of talking movies, besides assuring to radio the hitherto denied services another $100,000,000 of assets, is to. be added to this array. of Victor stars for broadcasting. Here lies the menace of permitting the air to be monopolized by such The Radio Corporation, already allied with General Electric and a trust. Surely there could be no greater danger to American institu­ Western Electric, which control sound reproduction devices for films, tions than that represented by such a control of the air. Congress is now allied not only with F. B. 0. but also with Pathe, which is thinks that through the Federal Radio Commission it is allocating tlle associated with F. B. 0. and with the Keith-Albee-Proctor theater wave lengths and the power to. be used by broadcasting stations through­ intet·ests, which own blocks of stock in F. B. 0. and Pathe and theaters out the country. As a matter of fact, after a broadcasting station bas in most of the principal cities in the country. obtained its allocation from the Federal Radio Commission, it must WOULD GET STARS, THEATE1lS take its hat in its hands and ask the Radio Trust for permission to use the allotted wave length. It must obtain a license from the American Thus, the Radio Corporation, whose acquisition of stock in F. B. 0. Telephone & Telegraph Co., and then it must buy the machinery for its wr.-: attributed to a desire to participate actively in the motion-picture transmitting station from the Western Electric Co., which is the manu­ business through talking movies, would through the purchase of the facturing end of the American Telephone & Telegraph Co. Yictor Co. obtain, it was said, the stars necessary to the greatest Having done this, it must buy from the American Telephone & Tele­ exploitation· of such movies and assure itself theaters in many cities. graph Co. the wire sen·ice necessary to hookup its studio with its None of the companies directly concerned would discuss the objects transmitting tower. If it wants to be part of a chain, it must buy the of Radio Corporation's activities recently in the amusement field, but wire service for the hookup with the chain stations from the same these activities have been closely watched and commented upon by American Telephone & Telegraph Co., and if the Radio Trust had its motion-picture people, some of whom believe that the corporation is now way the listener who wants to hear the broadcast from this station ready to begin through F. B. 0. the production of talking movies with must buy his set from the h·ust or from its licensees. Victor stars. There are nine outstanding ways in which this great radio monopoly When radio first entered the movies through the purchase of stock is now seeking to perfect its complete control of the air. These are : in F. B. 0., it was believed then that it had made the connection merely 1. By obtaining through chain stations the lion's share of the cleared to obtain the production of master films for television exhibition in the channels from which the Federal Radio Commission has removed the event that television became developed sufficiently to permit the screen­ less-favored stations, and which are looked upon as the choicest gifts ing of such films in the homes of radio set owners. The purchase of of the commission. Victor caused an enlargement of the conjectures regarding the com­ 2. By obtaining as complete a monopoly of all commercial and experi­ pany's activities. Warner Bros., producers of Vitaphone, a talking movie in which mental wave lengths, in the low wave-length zone as well as in the channels above the present broadcasting field. So far, the Radio Com­ sound is recorded on a wax disk instead of on film, now has a contract, mission has already given the trust and its subsidiaries a vast prepon­ it was said at this company's offices, with the Victor Co. and tlle Bruns­ derance of these wave lengths, both in number and in the power which wick Phonograph Co. whereby it may obtain the services of the stars these stations are permitted to use 4,000,000 watts out of 5,000,000. of these companies for Vitaphone. The Warner contract, it was said, 3. The monopoly of all wireless-telephone development in the United would not be affected by any possible activity of radio and F. B. 0. States. This particular monopoly was allotted to the American Tele­ in the production of talking movies. Incidentally the Vitaphone and phone & Telegraph Co. as a chief constituent of the Radio Trust in the the Movietone, which is produced by Fox, are based on patents con­ cross-licensing agreements among the corporations comprising the trust. trolled by Western Electric and the Warners, while the film recorded 4. The monopoly of all wire hookups between stations. This monopoly sound devices are controlled by General Electric. is now exercised by the American Telephone & Telegraph Co., which is MOVE FOR PATENTS SEEN thus the deciding factor in all chain-station developments. Some observers in the motion-picture industry saw in radio's activity 5. The monopoly of all wire hookups between transmitting stations in the movies only a combination of interests whereby radio could and " remote-control " studios and events, now one of the most impor­ manufacture talking movies equipment based on General Electric patl.'nts tant features of successful programs. '!'his also is in the hands of the for the motion-picture industry generally. In support of this it was American Telephone & Telegraph Co. said that General Electric wanted its devices within the reach of any 6. The monopoly of the construction of all radio-transmitting machin­ producer and that radio would not control them exclusively. ery-also a " telephone company" monopoly under the Radio Trust Radio, Western Electric, General Electric, and the Victor Cos. have agreements. been associated in business for some time. Some of the electrical 7. The monopoly of receiving set manufacture. This monopoly be­ and acoustic devices on Victor machines are based on patents held by longs to the General Electric Co. and the Westinghouse Co.-these com­ these companies while Victor manufactures machines which are a com­ panies to share the business 60 and 40 per cent, respectively, and the bined phonograph and radio receiving set, and has an agreement with Radio Corporation of America to be the sole selling agency. This these companies whereby it receives the benefit of their research and monopoly has been further accentuated by the licensing of 25 hitherto engineering facilities. independent manufacturers, giving the Radio Trust control of at least This article shows the paramount position, the triumphant 75 per cent of the receiving set manufacture in the United States. if not ruthless position, occupied by the Radio Trust. It would 8. The monopoly of all radio vacuum tubes in. the United States. seem that the commission has aided the Radio Corporation in This monopoly was to have been perfected through the famous " tube securing the powerful position which it occupies in the broad­ clause" in the license agreements issued by the Radio Corporation of casting and radio world. I am afraid the bill before us will America to the licensed set manufacturers requiring them to buy their not sufficiently curb· the activities and limit the growth of this tubes from the trust. The Unitrd States district court at Wilmington, trust but will contribute to its aggrandizement, and so help it Del., however, has declared that this clause violated the Clayton Act in striking down independent producers and those who desire to and has opened the way for millions of dollars' worth of triple damage engage in the radio business not only as producers but as suits by the independent tube manufacturers whom the trust had tried broadcasters. to destroy. In this connection I desire to have read a letter which I 9. The monopoly of all future radio development in such vast fields received this morning which bears upon the Radio Trust, its as television, telephotography, distance achmtion, radiant energy, and power and activities. rad.io transmission of power. This monopoly is sought through the The PRESIDING OFFICER. Without objection, the clerk agreements for the future pooling of all research made by the com­ will read, as requested. panies in the trust, and the reciprocal allotment of exclusive fields for The Chief Clerk read as follows: their exploitation. RADIO PROTEC'.riVE ASSOCIATION (INC.), Our organization rep1·esents the independent radio manufacturers Ohicago, March 24, 1!128. whom this powerful monopoly bas tried to destroy. Neither the inde­ Hon. WILLIAM H. KING, pendent manufacturer nor the independent broadcasting station nor the U1iited States Senate, Washi11gton, D. 0. independent listener can fight this monopoly alone. He must have the DEAR SENATOR KING: The significant thing about the fight which the help of the Congress of the United States. The restrictions wh1ch the Radio Trust is making to perpetuate the present unjust allocation of two Houses of Congress are writing into the bill to extend the llfe of LXIX-333 5290 CONGRESS! ON AL RECORD-SENATE ]f.ABCH 24 the Radio Commission are an important step toward curbing this evidence it was due to the fact that there were other carriers on this monopoly. However, they do not go far enough. May we suggest, frequency at the same time the experiment was conducted. There was therefore, that the Senate investigate this radio monopoly in order that no heterodyning evidenced between WAIU and WGHP. Had the experi­ it may give permanent re.lief to the American people and keep the air ment been conducted on a cleared channel it would have met with signal free. success. To demonstrate the practicability of the idea, it is my purpo e Sincerely yours, to apply to the Federal Radio Commission for the privilege of conduct­ OswALD F. ScHUETTE, ing the experiment on a cleared channel, namely, 1,000 kilocycles, E:eecutive Secretary Radio Protective A.ssociatioll. broadcasting a Columbia chain program simultaneously with KMOX, 1\Ir. KING. 1\Ir. President, it bas been suggested to me that St. Louis, Mo. if the Radio Commission shall discharge its duty as it should I am sure these experiments will have a far-reaching effect and aid under the law, it will deny a license to this trust and to its greatly in the solution of the problems now faced by the Radio Com­ subsidiaries. The law provides that licenses shall be granted mission. only where the public interest requires or where it is a matter May I have the pleasure of your comment? of necessity

JANUARY 18, 1928. JANUARY 19, 1928. WAIU, ColumbttS, Ohio: WAIU, Columbus, Ohw: This evening's test between W AIU and WGHP, of the Columbia chain, Reference to your broadcast Wednesday of the Berlin program with of 1,080 kilocycles proved a success as far as I am concerned. I was your station and WGHP, Detroit, on the same wave. with W AIU all through the test. I am, I listened to most of the program through W AIU ; beard the program FRANK ADAMS, very good \vitb no interference from WGHP. In fact, I did not know 567 Madison Avenue, Paterson~ N. J. you were on the same freque11:cy until your announcer closed the program. JANUARY 19, 1928. I first bad the program through In!OX at St. Louis, but being so WAIU, Columbus, Ohio: close to our own stu.tion here on 5,000 watts I was getting some inter­ You requested for reports of your test last night, January 18. I ference, dropped down the dial to WAIU, and heard the entire program was tuned in for the hist part of the Columbia phonograph hour from clearly. Yon perhaps know that we only broadcast two hours of the

/ 5292 CONGRESSION.A.L RECORD-SENA.TE ~lARCH 24 Colombia chain on Sunday aft~rnoons. The modulation of your station b:r candidates in monopolizing the use of the radio to the disau­ was very good, with only sJight fading. From a BCL's opinion at this vantage of those who are without financial means with which to point your experiment was a success. ad-vertise by means of radio broadcasting? With best wishes, Mr. DILL. The only provision of the radio act of 1927 relat­ NEWS DIRECTOR AN~OUNCETI, ing to the use of the radio by candidates for office is the pro-vi­ Station KOIL. sion that requires that a radio station owner who permits his station to be used by one candidate must give equal opportunity JA:-IUA:RY 19, 1928. to any other candidate for that office. That was as far as Con­ WAIU, Columbus, Ohio: gress felt it wise to go when the law was p·assed a year ago. Commenting on radio reception <1f January 18---it was fine. We So far as I know there has been no abuse of the use of the radio have an 0. C. Dayton set, and think Mr. Thompson's voice the best by in a political way in discriminating against candidates. far a announcer ; perfectly plain ; we enjoy him very much. l\lr. 'V ALSH of Massachusetts. I recall that legislation, of Respectfully yours, course, but the Senator is aware of the fact that the usual rates Mr. and Mrs. R. M. R. HL"TCHI:SGS, for the use of radio are not maintained during political cam­ Mechanicsburg, Ohio. paigns; that the radio companies have a special price for politi­ JAX ARY 19, 1928. cal use, a price that is double if not treble the usual price for WAIU, Cohnnlms, Ollio: advertising over the radio. The Senator is aware of that fact I am pleased t~ report that the synchronized program came in with is he not? ' remfl.rkable cl:u-ity and volume. No trace of distortion was present. Mr. DILL. I am. The volume was great, no doubt due to both stations contributing. No Mr. W .A.LSH of Massachusetts. There is no check upon such interference with Detroit or other station was present. charges. Very truly yours, Mr. DILL. There is not. LAunE~ CE C. JOXES, Libe-rty, 11-ebr. Mr. WALSH of Massachusetts. So that it may be possible for any radio station to charge such an excessive sum that some JANUARY 19, .1928. candidates will be in position financially to use the radio, while WAIU, Columbus, Ohw: others will not be. Am pleal';ed to report picking you up on my Victoreen super last Mr. DILL. That is a possibility. I may say, however, that evening at 8.45, and holding you on and off as desired until 10. the radio is still new and the commission has not been author­ Everything came in splendidly, except interference from fading and ized to take over control of rates for advertising by radio · it from Denver if not careful in set adjustment. has not been authorized to pass upon the question of adver'tis­ Program was fine, and the Berlin program particularly so ; music box ing or the way in which it shall be handled. That may become also sounded nice and "tinkley." I also want to comment on the necessary if radio stations abuse the freedom which has been nice announcing-your " gentlemanly miker " is good, thoroughly alive allowed. t o his responsibilities, and with the voice to put it over. "Pleased to Mr. W .A.LSH of Massachusetts. In view of the Senator's meet yah." special knowledge of this subject, I hope that before this ses· Very truly yours, sion of Congress shall adjourn or when he shall return after his FRED w. SYKES, · reelection to the next Congress, he will draft some proposed 403 West Lake Street, Chicago, Ill. legislation which will aim to provide for the use of this power· ful means of public information equitably to all candidates for JA:XUARY 18, 1928. public office and all political parties. I think that we ought not WAIU, Columbtts, Ollio: to wait until the abuses appear, which are certain to come and I have ju.'3t finished listening in on your fine program. I have a .two­ have already arrh-ed in the matter of radio advertising, but tube Crosley, and got every word clear. J11St before closing you that some constructive and remedial legislation ought to be spoke of a set you were checking up on. I have forgotten the name. enacted. Has the Senator given thought to the importance of Are these sets sold in Canada ; if so, by wbat company? If not, would this feature of radio regulation? the music company you spoke of care to sell to a private? I have Mr. DILL. I may say to -the Senator I have given much never beard of a set by the name you mentioned. If the sets are as thought to that suhject. In that connection I will give expres­ good as yours, no doubt some could be sold in this district. Kindly sion to a thought which I have not previously expressed let me hear from you. namely, that, since radio stations are given licen es by th~ Yours truly, Government to use certain frequencies in radio transmission, E. B. PUGH, it might properly be required that a certain amount of time be Digby County, Westport, ?-;ova Scotia, Bo.:c J!l'o. 85. permitted by candidates for office and in the discussion o:t public questions without cost to anybody. There is to-day no JAXUARY 18, 1928. license fee charged. The use of a wave length is worth thou­ WAIU, Colttmbus, Ohw: sands and sometimes hundreds of thousands of dollars to those The simultaneous broadcasting between your station and Detroit came who receive permission to use it. \\!ave lengths are given with­ in here wonderful, perfect. We tuned in at about 9.40 p. m., C. S. T., out cost other than the mere investment of money and the not knowing what we may pick; but having the dial accidentally set, attempt to give programs that will be satisfactory. I have turned on the current and in came the music we like best, Siew and he stated to me at that time: of the fact that an excuse advanced for large election slush Under this rearrangement a rough calculation shows that Massachu­ funds is the cost of advertising, I should like to ask the Senator setts would have its present power of 19,000 watts cut to 3,750, and its from Washington if there is in this bill or in the law of last 18 stations cut to 8 stations, in order to put New England on the same· · year or in any pending legislation any provision that seeks to basis as certain States in the South which have very few ra-dio sta- eontrol the possibility of large sums of money being expended tions and veQ few radio listeners. ' 1928 CONGRESSIO.r"'"AL RECORD-SEN.._~TE 5293 I understood the purpose of the House amendment was to :Mr. WALSH of 1\IassachuS(>ttS. So we are up against the equalize l'adio power and radio stations. It seems to me that old problem of the big monopolies gradually, through gov­ the 1·eal end and object to be attained is. the equalization of ernmental aid -..and commis. ions,. as the Senator from Utah -indi­ radio service. ·while the number of stations and the amount . cated in his remarks, eliminating the smaller stations . and of radio power are factors in determining the equalization of the smaller operators. serviee, it seems to me that what the commission ought to try Mr. DILL. I want to say thftt I do not, of course, agree to work out is a plan that will give the people of all parts of with everything the Senator from Utah said. I ha >e no desire the country an opportunity to listen to and receive the best to see anybody shut off the air so long as it is used properly. radio programs and to have the very best of radio service. I I want the Radio Corporation and the Westinghouse Co. and judge from what the Senator has said that the compromised the General Electflc Co. to ha>e the right to broadcast their conference ngreement that has been reached seeks to bring programs for the people of this country; but I do not want, about that condition and that there is to be no immediate and I do not think the Congre~s wants, and I know the intent reduction in the number of stations or the amount of power in of this law is not, to have them permitted to crowd off the any of the radio zones, at least not until such time as applica­ air a great number of independent and smaller stations. If tion~ are made and radio stations financed from the zones that kind 'of an interpretation L persi ·ted in, there are two which have not the number of stations to which they are remedies-ope in the courts and the other by impe-achment and entitled. Is that correct? conviction of commissioners. Mr. DILL. Let me say to the Senator that the fact that Mr. l\Ir. WALSH of :Massachusetts. I think there is a good deal Caldwell attempted to interpret a statute before it was written in the fear of monopoly control expressed by the Senator from and to interpret it in the way he did shows how unfitted, in Utah. my judgment, he is to apply the new law of Congress to con­ l\Ir. DILL. I think there is, too; but mo t of the troubles ditions that are to be changed. of which the Senator from Utah complains mnst be reached Mr. W AI.. SH of Massachusetts. His criticism was of the by other kinds of legislation than by dividing wa>e lengths, House amendment. licenses, and power. l\1r. DILL. The Senate amendment will lead to practically Mr. 'V ALSH of Massachusetts. I am nppreciative of th"e the same result when it shall be applied. It assumes, first, Senator's ex"Planation in answer to my questions. that all of the zones must be cut down to the level of the low­ est zone, the third ?..one, in the South, which has one-fifth of Mr. DILL. I am very glad to answer them. what the first zone has. It assumes, in the second place, that I shall not take more time now w1less there are some other the present high-powered stations should· be allowed to retain questions: the superiority they now have. Mr. DliJL subsequently said: 1\lr. President, I have here some l\Ir. WALSH of Massachusetts. The monopolizing of broad­ charts that I should like to insert in the RECoRD at the end of casting by the high-powered stations the Senator from Wash­ ·my remarks made earlier in the day. ington and I do not agree to. The PRESIDIXQ OFFICER. Without objection, it is so Mr. DILL. To which I do not agree. Let me remind the ordered. Senator from Massachusetts, however, that if the three or four The matter referred to is as follows: high-powered stations in the first zone were cut to 10,000 watts, Olwrts sho1ving stations cwd power allocated by the Radio Commission the first zone would then have only about 115,000 or 120,000 watts, which is less than some of the other zones have and WATTS OF POWER BY ZOXE,' one-half of its proportionate share. Instead of wiping out sta­ Power Power Power· Power tions, instead of reducing powt>r to the ridiculous point sug­ Zone requested granted denied pending gested in Mr. Caldwell's letter, all the commission has to do is to take away from the Radio COI-poration and the General Elec­ tric · Co. and affiliated stations the enormously high power 1_ ------. 107,235.0 74,760 14,850.0 17,625 granted them, and the first zone will not have beyond its pro­ 2_-- -- . ------.------135,590. 0 11.845 50,525.0 73, 2"20 3_ ------·------.-- 84,911.0 10,035 18, 195.0 56,661 portionate share. But the statt>ment made by Mr. Caldwell 4_------. ------. 181,833.0 41,375 76,888.0 63,570 was l>ased on the theory that the commission would continue 5 ___ ------.------65,547.5 35,490 '1:7,807. 5 2,250 to give these stations the proportionate superpower which they TotaL. __ ·------__ _ 575,116.5 1i3, 505 213,346 now have, and that, in my judgment, is the best proof that I 188,265.5 1 have seen of his unfitness to carry out the new law. The new law proposes to divide wave lengths and time of Station power Qperation and station power as nearly equally as possible and Zone Po pula- Sets Sta· lays down a principle of law, namely, · that the equality of tion tions . 500 '1 1,000 5,000 10,000 service shall be the basis for such division. watts or Iwatts or watts or watts or Mr. WALSH of Massachusetts. As it should be. more more more more 1\Ir. DILL. Then, in order that there can be·no doubt as to what i~ meant by "equality of service," the law says that in 1-~ ------~ ------24,000,000 1, 445,000 127 58 17 11 5 order to bring about this equality of service they shall clivide 32.------______2!, 000,000 1, 367, {)()() 113 38 14 5 2 4 ______25,000, {)()() 1, 037,000 103 47 13 3 0 as nearly equally as possible wave lengths and station power 24,000,000 1, 62.5, 000 209 96 43 15 1 and time of operation and frequencies. That does not mean 5 __ - -- ·------9, 000,000 863,000 133 50 25 4 0 that some zone that has a low number of licenses to-day can TotaL ____ ------not have the number increased; it does not mean that they are ------685 289 119 38 8 to wipe out any other stations; but it does mean that there must be some justice and some equality of treatment to differ­ Total broadcasting stations as of ~larch 15, 1928, showing in separate ent sections of the country and to different applicants who columns number of stations with 500 watts nnd over and number of sta­ apply for these licenses. tions with 1,000 watts and o>er and with 5,000 watts or more and Mr. WALSH of Massachusetts. In other words, no radio 10,000 watts or more: station destructive policy is contemplated immediately? Total station.s and powm· used (bll ~ones), show-ing increases an

SEClt£rARY HOOVER'S' REPLY TO ·sENATOR BORAH'S QUKSTTO~AIRE and was held for long pei"iods of time. That land has been Mr. NEELY. Mr. President, I ask unanimous consent to reclaimed for agriculture. Thrhing •illages, towns, and cities nddre s the Senate on next Monday immediately after it con­ have been built thel'eon. Millions of people have invested then· venes, concerning Mr. Hoover's reply to the recent question­ money, and an immense amount of value has been added to the naire of the Senator from Idaho [Mr. BoRAH]. wealth of the Nation. The PRESIDING OFFICER. All that is necessary for the In general and in a wortl, these improyement , all neces ary , enator from West Virginia tf} do is to announce that at that to the development of our conntry, have created a condition Ume he will addre. • the Senate. whereby the natural re ervoirs which formerly exi ted ha'"e Mr. NEELY. I do not wish to take issue with the Chair. been wiped out, the slow and gradual seepage of waters into I ._imply de ire that the consent which l have asked shall be the streams has been supplanted by a system that sends the grunted. water. into the sh·eams in a very short pace of time. TJ1e e The PRESIDL ~G OFFICER. I:s there objection? The Chair conditions exist from the Gulf of Mexico to the source of the hears none. river, and then, extending along the tributa1·ies, reach far into CALLING OF TlfE BOLL the interior, until finally they touch the base of the mountains on either ide of the great interior valley. Mr. REED of llissonri obtained the floor. It must be manifest, therefore, that the problem is one not :llr. KING. Ur. President, I think we should have a quorum. for communities, not for States, but for the Nation to control. I suggest the absence of a quorum. The States nearer the source of the stream, or the individuals The PRESIDING OFFICER. The Secretary will call the of the State , ba-re adopted improvements resulting in the con­ roll. ditions I have spoken of, hurling waters into the stream at that The legislative clerk called the roll, and the following Sen­ point. The water goe on to injure or menace every State to the a tors an -we red to their names: Gulf. Cooperation between the States can not be expectell, be­ A hurst Fletcher McXary Shortridge Bark! y Frazier Mayfield 8immons cause their interests are entirely w:fferent. States fmther Bayard George Metcalf Smith upstream are not menaced, and yet they furnish the waters Black Gerry Neely Smoot which cause the menace. Blaine- Gillett Norbeck Steck Blease Gooding Norris Steiwer As we proceed down the stream, as the l\Iississippi gathers Borah Greene Nye Stephens the waters of all its great network of tributaries, the menace Bratton Hale Oddie Swanson :BJ.>ookhnrt Hawes Overman Thomas incre<1ses, until we find in the lower l\lissi ippi a raging tor­ BL"ons ard Hayden Pine Tydings rent, which words can not describe, and which nothing but the Capper Johnson Pittman Tyson highest engineering talent of the world can ever control. If we Cttl'frWf\Y Jones Ransdell Walsh, Mass. Couzeu Keudt•ick Reed, Mo. Walsh, Mont. consider the case of Louisiana and of other States near the Cm·tis Keyes Robinson, Ark. Warren mouth of the river, we find that there the greatest menace exists Cutting King Robiru on, Ind. Waterman from the parent tream. Dale McKellar Sackett Watson Dill McLean Sheppard Wheeler Mr. MAYFIELD. Mr. President, then, from the Senator's Fess Mdlaster Shipstead rem::u-ks, one can not escape the conclusion that this question is l\fr. GEORGE. I wish to announce that my colleague [l\Ir. distinctly a national question in every sense of the word. HARRIS] is ab ent on official busines . Mr. REED of l\Ii · ouri. That is what I am trying to lead The PRESIDING OFFICER. Sen~uty-one Senators having up to. Louisiana is helpless. 'Yhy? Even if it had all the aru;wered to their names, there is a quorum p1·esent. , money in the world at its command, it could not control the rh·er outside its boundaries or beyond its border . It can not FLOOD CO. THOL control the.·e waters further upstream which come hurtling Mr. REED of :Missouri. l\lr. President, I desire to enlist down upon it. What is true o.f that State is true of the other the attention of the Senate to what I regard as the greatest States lying near the mouth of the river. que tion now befm·e the American Cong1·ess. I hope I can Another consideration is that no State can interfere at all make my remarks brief, and possibly to the point. with this . tream except by the permission of the Federal Gov­ Nearly a year has pas ed since the waters gathering in ernment. The problem. therefore, is a problem that can be the great Mississippi Valley swept in their devastating course han(Tied only by the Federal Government, and the Feueral Gov­ to the Gulf, with a resultant loss of life- of nearly a thousand ernment has ~been derelict in its duty to an astonishing degree persons, with a probable loss through exposure of a much and over a great period of time. larger number. There was a direct loss in property of $250,- It began years ago. when perhaps there might have been 000,000, ancl, again, that loss does not comprehend the incidental some excuse, because the Government was poor and limited in damage which fell upon the country. It will require years to its means, a system of patchwork improvement. It built a little 1·estore the conditions as they once exi ·ted. dike here, a little revetment there~ and a little bit more at ~orne That ~ood was perhaps the worst flood since the country other place. No systematic scheme has ever been adopted in all" has been thoroughly settled, but there is not a year when the the long years f<~r really solving this problem. waters do not break beyond thei1· banks at some place, and Fifty years ago we began to improve the Ohio River for navi­ when vast damage is not done to the great Mis issippi Valley. gation. For 50 years we have been building a series of dams The direct damage is only a small part of the actual damage which are of no practical benefit until the last one of the dams resulting, for lying adjacent to the Missis ippi and its vast is built and we still have three or four dams to build. tributaries are enormous bodie: of land, which, if they are The PRESIDING OFFICER. The hom of 2 o'clock hav~g not overflowed every year, nevertheless are not regarded as arrived, the Chair lays before the Senate the unfinished bu.·i­ entirely safe for agricultural purposes, . and agriculture lan­ ness, which is Senate bill 1271, the migratory bird bill. guishes and suffers by reason of the constant menace existing. ~Ir. REND of Mi<>SfrmL That so1·t of thing in the construc­ I think it is safe to say that there is an annual avemge loss, tion of dams illustrates the conduct of the GoYernment with by virtue of the conditions I have mentioned, and many other reference to the entire problem. Moreover, the Government conditions which exist, and which I do not pause now to detail, has followed the policy of limiting it work to navigation and of $2W,OOO,OOO; that four years of these losse will aggregate impro>ements incident thereto. It has utterly ignored the­ a billion dollar greater problem and the greater duty of controlling the flood The question is, What is to be done with this sort of con­ waters and protecting the adjacent lands and property from dition, and incidental to that, and as important, is the question, injury, a policy which has always seemed to me to be narrow What are the causes for the condition? I do not intend to and stupid to the last degree. This i . not a new thought with go into that question in detail; I merely mention the fact me. The RECORD will show that I have time and again in the that nearly every fann that bas been improved in the great Senate for a period of years declared that as the Government valley has re ulted in the building of ditches and drains car­ a serted its jnriediction over the~ e streams, it was for that rying into the stream in a few hours' time the water that rea on alone in duty bound to harnes" and control the waters formerly aeclllllulated and lay on the ground for a period of over which it asserted it dominance. time, and then slowly worked its way to the body of the We have been met always--and, so far as I know, by all ad­ h·eam. Myria-ds of these ditches have been built. Myriads ministrations-with opposition to that \iew. Apparently, it of tile drains have been laid. The re ult is that the water took the lesson of tbi.'3 fr ightful cata trophe to finally awaken that accumulated, and that formerly took 30 or 60 days to a real interest and a real understanding of the magnitude of the reach the body of the stream, is now hurled there within a question in-rol>ed. But it has been a slow proces ; and while few hours, or a few days, time. conviction seems to be gradually settling into the minds of the Going along with these les 'er improvement has been a gen­ statesmen who control at the present time, the conversion does eral mo>ement for the drainage of immense areas that formerly not seem to be complete and certain. With all the waters constituted great spaces where overflowed water could be held I'ushing to the sea, with hmnan beings clinging to the branches 1928 CONGRESSIONAL RECORD-SENAT~ 5295 of trees, with the homes of people tossed upon the surface men and women who had already, in :fighting former floods, for of the angry waves, with men, women, and children fleeing for the construction of levees, and other works of protection, mort­ their lives, with hunger and want standing with their grinning gaged their lands through the issuance of bonds and various skeleton countenances looking at the horrible spectacle, we could other securities· that rested as a burden upon their properties. not arouse the Government to any effective action. Moreover, such a plan as that would simply have meant that Some of us asked for a special session of Congress to appro­ this work would not be completed for many, many years. Any priate money to alleviate the distress. I myself sent a tele­ one State by refusing to make its contribution might delay or graphic request to every Member of Congress asking them to prevent the improvement of the stream at a point where if it appeal to the President to call an extra session of Congress. were not improved the works ·below and even the works above The President was engaged in the laborious and exacting duty could not be constructed and be effective. If that plan of the of learning how to bait with worms hooks for trout. He sent administration had gone through, I venture to say that there is Mr. Hoover down the stream, and Mr. Hoover and others l'ecom­ not a man living to-day who would have ever seen it com­ mended that the problem be handled by public charity. The pleted. It was without justice; it was impractical ; it was Red Cross, one of the most ~agnificent organizations there is indefensible. on this earth, was called in to furnish the monGys which ought My understanding is that it bas been agreed that provision to have been furnished by the Federal Government, and fur­ shall go out of the bill; that that result has been accomplished nished within a few days' time. The hat was passed, and by patriotic men who assembled here; that they had very charitable people all over the land contributed. A wholly in­ effective assistance in the House of Representatives from Rep­ adequate fund was se"Cured. It was put before these people as resentative FRANK R. REID, chairman of the House Flood Con­ a charity, as a dole. Many thousands of them refused to accept trol Committee, and assistance from many others. A number of it. even though they were suffering for food. It was a policy Senators also have worked upon it. I am yery proud also to say of economy, and the kind of economy which in my judgment is that my colleague, the junior Senator from Missouri [Mr. the most unjustifiable and contemptible it is possible for the HAWEs], has given nearly all of his time since this session began human mind to concei've. It is a strange kind of economy. It to the accomplishment of the result just named and to other is an economy that seems to be limited to our own country improvements in the bill, to which I shall refer briefly later on. and to our own people, but which does not apply to the people So we now have a bill, which I do not claim is perfect in any of of foreign lands. its parts, but which seems to be reasonably acceptable to those There have been other disasters in other parts of the world. who have given this great problem much time and study. That We have made appropriations elsewhere. Our hearts ache when amendments to it will be offered I have no doubt. we hear a cry of distress if it comes from across the sea. But It was proposed to appropriate a sum of money about one­ if it is at home, and the message is bQJ.·~e to us in the English fourth of what it will take to do the work. It seems to be con­ language, we pass the bat. I am not gomg to undertake at all ceded that it will take at least $700,000,000 to do the job and to give a complete list, but here are a few: to do it right. It was then proposed to appropriate, I believe, In December, 1921, we appropriated $20,000,000 for the relief $225,000;000 or $268,000,000. of the distressed people of Russia, which was a perfectly justi­ Mr. HAWES. It was proposed to appropriate $268,000,000. fiable thing, for whenever people starve and we have plenty Mr. McKELLAR. To authorize the appropriation of that we can afford to send them aid. But that really ought to apply sum. in this country as well as elsewhere. Mr. REED of Missouri. To authorize, I mean, not to appro­ In January, 1922, we sent Russia $4,000,000 worth of medical priate. That sum has been raised to $325,000,000, which is just supplies. In March, 1924, we sent medical supplies for the about one-half of the money that everyone agrees must be earthquake sufferers of Japan. In Febi~uary, 1925, we appro­ expended and, in my judgment, just about one-third of what priated over $6,000,000 of supplies to relieve the suffere~ from will ultimately have to be expended if the work shall be com­ the earthquake in Japan. - On March 4, 1925, we appropriated pleted properly. However, that much has been accomplished, $10 000 of quartermaster supplies, and in this case it went to and the work can be started. That much of an enlargement of Ne~ Bern, N. C., the smallness of the amount indicating, of the bill has been brought about by these proposed amendments. course, that it was going to the American people. 'Ve appro­ It was also proposed to leave the work entirely in the hands priated $100,000,000 for the relief of Europe after the war. of the Army engineers; that is to say, in the last analysis, they All of these benefactions I approve. But I inquire now were to decide everything. That provision bas been enlarged why it was that Congress was not convened and the great arm so that civil engineers are to be added and the authority of of this Government stretched out to protect people who were the Mississippi River Commission enlarged-a vast improve­ in no wise to blame for their condition, people who were suffer­ ment. I shall not stop now to mention the other matters, ing largely because of the acts of_the Government itself, for it because what I have spoken of lies within the scope of the is now a conceded fact that in seeking to improve the Missis­ remarks I want to make. sippi River the Government engineers closed certain great out­ In the first place, I do not want to criticize our Army engi­ lets for flood wate!:S and, by that act increased the menace of neers with any harshness, but I propose to state some limita­ the flood. tions for which they are not responsible. I have seen them at Mr. McKELLAR. Mr. President, would it interrupt the their work; I have heard them before committees; and I assert Senator if I should make just a brief statement? that they always work under restrictions. They have an inti­ Mr. REED of Missouri. Not at all. mation from some committees of Congress or from the President Mr. McKELLAR. In reference to the calling of an extra that an appropriation must be kept at a certain figure, and they session, I want to say at this time that a great majority of the make their plans thereafter not according to what should be Senators, irrespective of party, united in the request, with those done in order to meet the problem but what they can do within of us who live in the valley, asking the PI:esident to call an the limits that ba\e been set. extra session for the relief of the flood sufferers. I recall-and I mention it merely in illustration-the instance Mr. REED of Missouri. I thank the Senator. I know that of an Army engineer who said they could only expend a million to be a fact from my own personal communication with them dollars that year, although there was the necessity for the also. But, Mr. President, that is past. That is history. For­ expenditure of several times that amount. When be was asked tunes have been wiped out, homes have been desh·oyed, families why they could not expend it, why they could not begin work have been broken up, vast areas have been devastated. The at 20 places, be said they had no equipment; that the amount relief did not come when it was needed, but they were promised stated was all that they could expend with their equipment. that in the future we we~e going to take care of the river Then, when be was asked why they did not get more equipment, proper. he said that Congress did not make the appropriations coH.­ Patriotic men from all over the South and some from other tinuous, and that the engineers did not feel authorized to spend parts of the Nation came immediately to Washington and the money ; in other words, in a case that required the labor sought to have, through conferences, a measure worked out of 20, and with 20 men available, they only employed 1 be­ which would be of benefit for the future. Some of them have cause they had only one shoYel. So we have proceeded through spent months of time here. The :first thing that they en­ the years. countered was the proposition that this work was to be con­ Moreover, there is anothPr difficulty. We rarely keep an tinued on a small scale-that is, a small scale as I see the Army engineer in the position of the head of the Engineering question-and then that the work could not py;oceed unless and Corps, the Chief of Engineers, for but a few years. Largely, until there should be a contribution of 20 p~r cent from the these men work up from subordinate positions where they have States or local communities. had little opportunity really to employ their talents and em­ That 20 per cent was to be largely paid by people who had ploy them without limitations. An officer holds the position been bankrupted, by communities that bad been prostrated, by of Chief of Eng'ineers for a few months in many instances. 5296 Q_ONGRESSIONAL RECORD-SENATE }l..A.BCH 2-! and for a few years in other cases. This problem, sirs~ is not stroyed. I never thought much of the economy of a man who, of the character that it ought to be consigned to the control having a hundred acres of ground t() till, and only one horse, of men thus circumscribed and hampered. contented himself with tilling 10 acre" instead of buying an I should like, in the few minutes more I int~nd to occupy ad(litional horse or hvo. I never thought much of the economy the floor, to give, if I can, my conception of what this problem of a man who starved his wife or his children, and thereby de- - is. First, it is national in scope and must be handled by the creased their productive capacity; and that is entirely aside National Government if it is ever handled effectively. Second, from the human phases of the question. I do not think much the problem embraces and affects, either directly or indirectly, of the proposition of a government confronted by one of the the welfare of substantially all of the territory lying between greate t catastro.{}bes in history which proposes inadequate the foothill" of the Rockies and the Alleghenies. Third, it remedies and halting policie . affects the welfare of forty or fifty millions of the population If we were to enter upon this scheme as broadly as it sllould of the United States in a direct manner, and it affects the be, and it took a billion dollars to complete it, what would it entire counti·y indirectly, because whatsoever affects so large cost us annually? Figures haye . been prepared-some of them a portion of the country must haYe its reflex action upon all were used by my collengue l\Ir. H.AWES-to show that for the parts of the country. first 10 years the interest charge at 4 per cent would be only ]fourth. There is not a business man in the world, if he owned $22,000,000 annually. That is on the basis of a 4 per cent the United States with all of its wealth, its resources, and its bond. I ay that you can float the 5()..year bond" of the United po.~sibilities, who would allow these devastating waters to States to-day, tax free, at 3 per cent, and sell them as fa ·t as continue their destruction for a single moment beyond the time people can get to the counter to buy them. At 3 per cent, the when the employment of the highest talent of the world could annual co~t for the first 10 years would be only ixteen million stop their destruction. As a cold business proposition he and odd dollars. The average cost for the 50 year. , with pro­ would garner these waters in the mountain pas~es and in the Yi ions for the retirement of the bonds at 4 per cent, would be \alleys and there begin the employment of them to irrigate $40,000,00{}-I omit all the odd figures-but at 3 per cent the dry lands of the West, and tm·n vast portions of that section $30,000,000, yaetly le. . than we now appropriate for repairs into the most beautiful agricultural and horticultural lands ot and patchwork improYements. the world. Are we frightened at it? Sometimes we get frightened very The expenditure there would be in proportion to the task. easily. Sometimes we are full of courage. 'Vhen gentlemen It would be in proportion to the demand. The waters thus found it convenient to do so, at the demand of international held back would in a slight measure-! think only in a slight financiers, they could cut down the debts that the foreign na­ measure-affect the flood waters below. As he proceeded it tions owed lls by oYer seYen thousand millions of dollar"'. T11e-y wouhl be found necessary at various places to construct- dams, could cut dmvn the Ital~n debt alone by over $1,600,000,000. and in the construction of dam and reservoirs power would SeYen time the amount neces.. ary to do this work on the be neces._arily developed; and with that power thus developed latTer a period of from G2 to 68 year . But when you proceed with temporary construction, neither would he begin turn to your ()\ffi country, to your own people, to the greatest at one point on the stream, but be would begin at as many problem that eYer confronted this Xation in time of peace, you points as men and machinery could occupy; and th·e works find this caviling and haggling, these narrow views expre. ~ea. when constructed would be permanent works, would stand Sir, I am in favor of entering upon this project under the there through the ages ; and when he had completed his task best conditions we can to-clay, and accepting this bill with he would ha'\'e made fertile fields out of great desert . He some amendment that will probably be offered from the floor would haye made the finest agricultural land out of areas that to meet certain difficulties; but in accepting it I do so with nre now wamps or are overflowed.; and the tenitory thus re­ the protest that the plan is entirely inadequate. The hope that claimed would be greater than the thirteen original States of we hll've is that it may be enlarged as time goe on. the Union. I am speaking not only of the Mississippi but I am in faYor of paying for this work out of bonds. The of it tdbutaries. He would follow these tributary streams work is to last through a long period of time. Its benefit will and giYe them the same kind of treatment as the parent stream; be enjoyed by generations that are yet to come, if it is done and when he l1ad completed his work be would have added to right. Why not reduce the taxes upon the liYing, let them the wealth of his inve tment or his owner hip ten times the bear their proportion of thi."' interest during the time they are co ·t, and he would do it as a cold business proposition. This living, and relieye us of ~orne of the burdens that now exist? is not a cold busiiie s proposition alone; it is a question of For taxation in tills country to-day is one of the great cur ·es of humanity, of justice, and of right. The people have a right the country. Why shall we be told that we can not reduce to demand this relief. taxes, ane bee-n delighted to hear the observations of Panama Canal. the very able Senator from Missouri [Mr. REED] in behalf of We were confronted, however, with the dictum of the pow­ the consummation of this great undertaking as speedily as ers that be, that we must confine this bill to a section of this possible, mor-e particularly in favor of the financing of this great water system, and the committee has decided to do that. wonderful scheme by the process of issuing long-term bonds. According to the estimate before the committee, this piecemeal When this matter was first presented to the Committee on business will cost $325,000,000. The balance of the project, Commerce, of whic-h I am a . member, we had before us the which is left open for the future, will cost probably as much proposition of General Jadwin, Chief of Engineers, which dealt as that sum, if not more, making an ultimate burden 'Of some­ with only a portion of the problem, and estimated the cost at thing like $700,000,000. something like $300,000,000. We also had the proposition of I agreed to support this bill, not because I ani satisfied with the Mississippi RiYer Commission, which dealt with the whole it, I want to say to the Senator from Missouri. I think we proposition in a broad and comilrehensive way and estimated ought to meet this proposition boldly and courageously, and the cost at something like $700,000,000. ought to settle it now and forever. But I was not able to have Shortly after we began the consideration of the problem it my way about it. It was my purpose, if we had had our way, was intimated that the powers that be would not tolerate under­ to present an amendment to this bill providing for the cost by taking this project upon as broad a scale as that outlined in the issuance of bonds, but I decided, when it was concluded to the proposition of the Mississippi River Commission. I then separate and divide it into parts, that I would wait until action took occasion to state my position to the committee, and that was taken, and then I would introduce a measure to provide a position was this: That the sentiment of the country had bond issue to pay for that part, and later, when the second crystallized upon the proposition that it was the duty of the portion of it was taken up, that I would introduce an amend­ Nation to take charge of this great system of waterways, and ment to the law, or a separate measure, providing for the pay­ to safeguard it for all time to come from the possibility of such ment for that by the further issuance of bonds. a disaster as took place in 1927, and that I thought that our 1\Ir. REED of l\fissouri. l\Ir. President, will the Senator legislation should provide against a flood not only as great as yield? that of 1927, but at least 25 per cent greatt>l'. l\Ir. Sil\I:MONS. I yield. I said I recognized that the cost would be enormous; that I l\lr. REED of Missouri. I hope the Senator has not drawn belie•ed the people of the United States were ready to assume the inference that anything I have said has been a criticism the burden, but that the exigE-ncies of the pre:o;ent situation of him. wert> such that it would be almost cruel to require the people l\Ir. SIMMONS. I know the Senator has not criticized me. of this country to pay that enormous SUlll of money during the I did not mean that. I am simply agreeing with the Senator. short period of time which would be necessary in order to Mr. REED of l\Iis ouri. I know the Senator has put his complete the work under the plan of appropriating annual splendid ability and his great experience back of a proper appropriations from current revenues to cover the work as it measure, and I want to commend him for it. I had in mind progressed. just the kind of obstruction to which the Senator has referred. I said that I was therefore in favor of treating this propar a part of the burden. time it was rmssed that we would appropriate for it as the I said that I therefore was in favor of that solution of the engineers might call for it, as we do in the case of ordinary problem, not only bt>cause it seemed to me to be a wise financial river and harbor improvements. But when it was ascertained arrangement for the Government to adopt in the execution of that if the canal wa& constructed upon the plans prescribed such a large and ambitious project but because at this par­ in the legislation, the costs would run up into the hundreds ticular time more than at any other time in all the history of of millions of dollars and that the burden, although not so this Government the people of this countrr are bearing a load great as in this case, would be more than the people of the of taxation that is not only burdensome but oppressive. In country could well be called upon to stand, and after the bill many instances it amounts almost to confiscation. I do not now had been passed providing for the building of the canal, a bill refer altogether to the high Federal taxes. I refer more par­ was introduced by former Senator Spooner, cne of the greatest tic-ularly to the high amount of taxation imposed upon the Senators that has sat in this body since I have been a l\lember people by their States and their local subdivisions, not by way of it, providing that the costs of that great enterprise, said of extravagnnce but for the purpose of providing absolutely then to be an enterprise so gigantic in its financial proportions necessary facilities in orrlE'r to give this generation the oppor­ that America was the only country in the world that could hope tunity to take advantage of the discoveries and developments to can·y it to a successful conclusion, should be borne by the 5298 COKGRESSIONAL RECORD-SENATE }lARCH 24 i nance of long-term · bon~. I do not think we provided for very prolonged, I shall not offer any amendment to the bill the issuance of the whole amount of bonds at one time, but a with reference to bonds. I shall b"Y to facilitate the passage of subsequent act was passed providing for a further issue so the bill through the Senate as soon as possible. I shall not that the Panama Canal was financed upon the basis of bonds offer any opposition to it, although it is only doing the work by is ued and that was upon the theory-and a theory the logic piecemeal, a dangerous policy, in my judgment, as well as an and ethics of which can not be contested-that one generation unwi e one. I shall try to do what I can to facilitate its should not be required to bear the entire burden of a great passage. governmental improvement and investment which was to be But if some other Senator does not do it first, I hall offer a constructed for the benefit of future generations. bill later providing that the payment of such amounts as are Mr. President, when we built the Panama Canal there were annually needed for the constrnction of such part of the project no such conditions in the country as there are to-day. When as is contained in the pending bill, and may be adopted by Con­ the war was on there was an emergency condition so far as gress, shall be provided for by long-term bonds bearing a low the Federal Government was concerned, and to meet that emer­ rate of interest, to the end that we may cast a part of this gency we called into existence every source of income that the burden, and justly cast it, upon those who are to come after Government could lay its hands upon. We wrung out of the us, and so that the present generation, which has been so over­ people $8,000,000,000 in one year. We raised that sum by taxa­ burdened with taxation that in some sections the very com­ tion in one year. To-day, although the war is long since over, mercial life of the community is threatened and its prosperity we are paying on account of the great amount of indebtedness imperiled, shall not have this further burden to carry unneces­ incurred during the war. "Cp to this time, almost 10 years s~n·ily. after the war, we are still paying over a billion dollars a year OIL SCA..~DALS AND CAMPAIGN CONTRIBUTIONS on account of the war. It will be some time before we get dd of tJ.1is burden under 1\!r. ROBINSON of Indiana. Mr. President, the hour is grow­ the present system of a sinking-fund arrangement and the pay­ ing late and I shall not attempt to detain the Senate this after­ ment of annual interest. It will probably be 25 years before noon for any length of time in a discussion of the subject that we get rid of this burden unless we collect out of the people was announced by me some days ago. In tead I shall gi...-e money to pay interest and to pay the sinking fund in excess of notice now that on next l\!onday, or as soon thereafter as I can the· amount which the Congress of the t.Jnited States in its claim the :floor in my own right, I shall again speak on the wisdom has said ought to be paid, and thereby force a liquida­ subject of Teapot Dome and the oil scandals. tion of this bonded indebtedness years before the time provided I do not believe, J\.lr. President, that the Senate's time should for its liquidation. That is what the administration has been be taken up in political discu sion ; I do not believe the people attempting to do. That is what it wants to do now. That is of the United States like to have the Senate's time, with the the reason why it is not willing that we should reduce Federal enormou. expen e involved, taken up in the discussion of poli­ taxes as much as they ought to be reduced, because the great tics when there are tremendous problems here to be solved; :financial interests, especially the international bankers, are and in the nearly two years and a half I have had the honor to anxious to get this gre-at public debt retired in order that they be a Member of this body I have consumed very little time in may have the field to themselves. Therefore the people a1·e political discussions; but the time has come when some one being taxed beyond what was contemplated by the Omgress, should stand up for the Republican Party, which I love, and beyond what is written in the law as the policy of the Govern­ which has very largely made this country the greatest the world ment in the retirement of the national debt. They are being has ever seen. taxed in order to give an advantage to certain great interests Mr. President, the Republican Party throughout the Nation and monopoliE-s in the United States. is composed of honorable, patriotic, God-fearing .American citi­ :Mr. President, the same emergency conditions that the Gov­ zens; and I am willing to concede as much for the membership ernment has been confronting exist to-day in all the States of of the Democratic Party; but some of those who have been: the Union. They exist in my State where we have le,ied taxes intru ted with leadership in both parties are mixed up in oil for the purposes of a great road construction program, where scandals. The rank and file of neither party is to blame. I we are building added facilities for better education of our shall neYer assail the I'ank and file of the Democratic Party. children, where we have had to repaYe our streets and install They have a right to their views as much as I have to mine. waterworks and lighting systems and sewerage sy.,tems and all I shall never assail a single sovereign State while I am a Mem­ that sort of thing. ber of this body. I love them all, from the largest to the In order to take advantage of the facilities and conveniences smallest. Each of them is a part of our common heritage and that new inYentions and progress and civilizatiOn have put at our common country. our door , we are burdened down with taxes. .As I said a little Oil will not be an issue in the campaign ne:xt November. while ago, in some jurisdictions this tax has become so high Teapot Dome will not be an issue in the campaign next that the man who owns land and cultivates it for a living finds November. The .American people, members of both parties, it exceedingly difficult to make enough net income to pay the will object to having their country's misfortune made a foot­ taxes on his property. ball of politics becau e some leaders in both parties, per­ In that condition of our country, when we are struggling with chance, have erred in judgment and in some ca es have be­ these great questions that modern civilization thrusts upon us, trayed the Nation. :Men do not make issues, although issues when we are trying to build these necessary conveniences and sometimes make men; issues makes themselves, and the issues to pay off the obligations which we necesarily have assumed in of the coming campaign will make themselves. connection with them, for the Federal Government to load us During the few minutes that I propose to discuss the origin down with $600,000,000 or $700,000,000 to be paid in five or six of our troubles around Teapot Dome and Elk Hills, reserving years for a permanent improvement that ought to be so perma­ the right to discuss these subjects in detail early next week, I nent in its nature and so solid in its character that it will tand shall only take pas ing notice of the Gove1·nor of New York. for ages and for gene1·ations and our children and our g~·and­ I shall say little at this moment about former Racing Commis­ children and our descendents for hundreds of ~·ears will get sioner Sinclair of New York. the same benefits from it that we get, and then to insist that we should pay it all in addition to the yery heavy war burdens I made a perfectly innocent inquiry a few days ago with we have just had to bear and a part of which we are still reference to the Governor of New York and his administration. bearing, to me is a cruel proposition. It is a proposition, Mr. I would not discuss the Governor of New ·York at all were it not President, not only cruel in its character, but one that may for the fact that he has to some degree made himself an issue involve an annual expenditure which may result in an undue before the people in that he aspires to the highest office in the curtailment of the amounts that are necessary to add such land; he would be the Chief Executive of the Nation. .A few improvements as modern condi,tions may require with reference days ago, within some 24 or 48 hours from the time the dis­ to the other waterway and harbors of the country. cussion took place on this :floor in a running debate in which .As I said to th'e committee, if it be insisted that this great his name was used, after he had had time to form a deliberate sum shall be annually paid for this one ystem of waterways, judgment, he wrote to tbe Senator from North Dakota (Mr. tben we are in danger of encountering sooner or later opposition NYE] that amazing letter which in some ituations might be from those sections of the Union who find themselYes short of considered a ~tate paper. I ay that anyone who would write funds by reason of the immen ity of the amount that will have a letter of that kind as his deliberate judgment, after due to be vaid annually from cUI·rent revenues for this one enter­ reflection, if placed in the White House might, in a very short prise. time embroil us with nations with which we are at peace. Mr. President, I had not intended to take so much time. I The' peoJ)le of thi country do not want war with any other ought to say in conclusion that while I did not have my way country ; they desire peace. .A man of his temperament would in the committee, although I insisted upon it almost continu­ not be safe to guide the destinies of the Nation, if we may ously until the last few days of our session, which haYe been judge from the letter which was written. 1928 CONGRESSIONAL RECORD-SENATE· 5299 Mr. President, I want to read now a few lines ft·om that sion, his connections with his racing commissioner, Sinclair, letter. I quote : during all those years. A careful search of the official records, made at my request to-day, Mr. President, I have no more to say about those two gentle- , confirmed my recollection that Mr. Sinclair never contributed to my men at this time. I desire now to say a word about the leasing campaign fund either in 1920 or any other time that I ever ran for bill that caused much of our trouble. office. 1\Ir. President, there was one man who stood here--on this side of the aisle, by the way-and with prophetic vision saw But, Mr. President, the ink had hardly dried after he had through the maze of misfortune that would come to his coun­ made his "careful investigation" until either he or the news­ try with the passage of that legislation. I refer to the late paper men or some one else dug up the fact that Sinclair did Senator from Wisconsin, Hon. Robert M. La Follette, who has contribute to the New York committee known as the Tammany passed on to the other side, who gave warning of the impending Society-and the country understands Tammany, and the coun­ disaster, but it was not heeded. I shall quote just briefly from try understands the relationship, I think, between the Governor his remarks. I will take only one day of the debate, 1\Ir. of New York and Tammany in 1918. Another contribution, ac­ President-September 3, 1919, on page 4735, volume 58, part 5, cording to the news reports, was made by former Racing Com­ of the REcoRD-and read from a speech by the Senator from missioner Sinclair to the Democratic county committee of New Wisconsin at that time: I York-Tammany-in 1926. Yet the governor rushes into print­ I giving his letter to the press before it was received by him to Why, sir, this oil belongs to whom? It belongs to the public, not to whom it was addressed-saying that a " careful investigation " the States, not to some administration, not to some committee of Con­ failed to show any contribution from Sinclair. If the gov­ gress. It belongs to the people. You have here--and have had ernor had waited a few more days after refreshing the memo­ around the doors of Congress and thronging the rooms of the committees ries of those about him his investigation might have determined that deal with these subjects-the representatives of the greatest · that other contributions were made by Sinclair in 1920, 1922, monopolies in the world, seeking to get this legislation through accord­ and 1924. The governor said n.one were made. A little while ing to terms agreeable to them ; but, sir, when they take under legisla­ later it is conceded that contributions were made by Sinclair tion which we pass we can impose any conditions we please. We can , to the fund by which he was elected, along with others, in require that the oil taken from these wells, or the coal mined on the 1918 and 1926. Government land leased under the terms of this legislation, shall be The letter is further evasive, Mr. President, in that nowhere prepared for the market on the ground, if need be; and my amendment therein does he admit to the American people that he ever gives the President the widest authority, and says that be is empow­ appointed Sinclair, when the record shows conclusively that he ered, under ·rules and regulations, to determine how the products appointed this man as a member of his administration twice derived from these leased lands shall be handled, to the end that the in the year 1920. The first time was in Janua1·y, and the second price of them, reasonable to the producer and reasonable to the con­ time, for a five-year term, in June in the midst of his campaign sumer, shall be determined by the Government. I say that there rest for governor. l\1r. President, Sinclair remained in office as within the terms of that amendment the full power and authority of racing commissioner until a month or two before his time this Government, up to its constitutional limits, to control this product. should have expired normally in 1925. It can say to Standard Oil, " If you take a barrel of oil out of this Let me mention a date or two. On October 22, 1923, the land, you shall keep it separated from the oil taken from other lands Senate inquiry began. At that time Governor Smith was the or assembled by you from other sources," and it can compel that to chief executive of New York. At that time Racing Commis­ be done. It can make rules and regulations that will follow this oil sioner Sinclair was a part of his administration. out of the natural reservoirs where it rests, the property of the United In November, 1923, witnesses from New Mexico told of Fall's States, the property of the people of this country, or until it reaches sudden wealth. Sinclair was a member of the New York the consumers in every conceivable form at a reasonable price. Democratic administration at that time. And more ·which I shall not read. I invite the attention of On January 25, 1924, his attorney, J. W. Zevely, admitted Members of tllis body to the entire debate. tpat Sinclair loaned Fall $25,000 and advanced $10,000 for a Finally, the Senator from Wisconsin said : trip to Russia. At that time Sinclair was racing commissioner of New York by appointment of the Governor of New York, Now, Mr. President, I renew my demand for a roll call on this and 1\lr. Alfred Smith was the Governor of New York. amendment. On January 31, 1924, the Senate ordered Sinclair's lease can­ And I mention here the fact that among the nays appears celed as fraudulent, and at that time Sinclair was a member of the name of the Senator from Montana [1\Ir. WALSH], who the administration of Governor Smith. voted against the amendment of the late Senator fTom Wis­ Mr. President, during all that period the Governor of New consin. l say, 1\fr. President, that had the l\Iembers of this York never once asked for the resignation of Sinclair, his racing body on both sides of the aisle listened to his counsel in that commissioner. w·hy? The only reason I can assign for his re­ particular legislation the country would have been saved fusing to discharge him from his administration, or, at least, much misery. publicly ask him for his resignation, is that he considered I pass on. Harry Sinclair a valuable public servant. On page 4742 of the RoooRn, in the debate of that same day, The Go\ernor of New York must have believed that Sinclair, I quote the Senator from l\Iontana [1\Ir. WALSH] : his racing commissioner, was rendering \aluable service to the people of New York and to the country. Furthermore, Sinclair The genesis of this bill goes back to a bill which was introduced in continued in that administration until the latter part of 1925 1913 or 1914, it being in all essential particulars like this, although, of and then resigned. Why? For his O"iVn "convenience." That course, differing somewhat in details. That bill was introduced by is the reason given. Was he requested to resign for the good myself, having been prepared by a committee called together by Secre­ of the State, for the good of the people, for the good of the tary Lane, consisting of the chairmen of the Committees on Public country? No; he resigned voluntarily, for his own "conven­ Lands, the chairmen of the Committees on Mines and 1\Iining, and ience." the chairmen of the CoDllllittees on Agriculture, if my recollection is So it is difficult to see how the Governor of New York can correct, of the Senate and llouse of Representatives. They, in con­ get away from the fact that he knew all about Sinclair and still junction with Secretary Lane and his as;;istants, prepared the bill. retained him as a member of his administration. Contrast this That is all I care to say about this being a Standard Oil bill. action 'Yith that of the Governor of Maryland in the last few Mr. President, that was in answer to the charge of the late days, himself a member of the Democratic Party, who has ruled Senator from Wisconsin that this bill was in the interest of the that Sinclair's racing s.table shall be kept from the race tracks interests; and that was an admission by the senior Senator in Maryland. from 1\Iontana that the genesis of this oil legislation that has One other thing : brought so much trouble to our common country was right at - In 1924, when the whole country knew of the infamy of Sin­ the beginning of the Democratic administration when the clair, down ·in New York City they held the Democratic Na­ Democrats came into power. tional Con\ention at Madison Square Garden; and I suppose 1\Ir. WALSH of Montana. 1\Ir. President-- Racing Commissioner Sinclair was there to assist the head of The PRESIDING OFFICER. Does the Senator from Indiana that administration in his aspirations for the Presidency. yield to the Senator from Montana? Right then, when they wer~ voting on Governor Smith for the 1\Ir. ROBINSON of Indiana. I yield to the Senator. Democratic nomination, at that very moment Sinciair-the in­ l\lr. lV ALSH of Montana. I suppose probably the Senator's famous, notorious Sinclair-was the racing commissioner of cursory examination of this subject is responsible for his error New York, and continued to be until the latter part of the about the matter; but I take the occasion to inform him that next year. In the ne:A-t letter he writes let the Governor of New the leases were not made under that law at all, but under an York explain thoroughly to the American people, without. eva- entirely different law. 530.Q CONGRESSIONAL RECORD-SENA~E ~!.ARCH 24 Mr. ROBINSON of Indiana. Yes; I shall get into that. may 1 shall sbow, when the Senator retUl'ns, I think, that right at it please the Senator. that moment this man Doheny bad his eye on these reserves, as On page 4754 of the RECORD of th'e same day I read the subsequently bas been proved conclusively. following: I do not charge the Senator from Montana with knowing o:£ Mr. WALSH of Montana. Mr. President-- his plan. I am willing to believe that the Senator was mis­ The PRESIDING OFFICER. Does the Senator from Indiana guided by Mr. Doheny. Yet the press dispatches recently have yield fm·ther? stated, if I reme~ber rightly-and I may be wrong, and I Mr. ROBINSON of Indiana. I yield to the Senator. would not knowingly make any statement that is not in accord :Mr. WALSH of :Montana. I want to understand how the with the record-that Mr. Doheny is to-day out in California Senator arrives at the conclusion that all of our evils-speaking slated to be one of the delegates in support of the candidacy of about the oil scandal--came about from the enactment of a law the Senator from Montana for the Presidency of the United that had not anything at all to do with the leasing of the naval States. oil reserves. Mr. WALSH of Montana. Just a moment. Will the Senator Mr. ROBINSON of Indiana. Mr. President, the Senator and tell us where he got that information? I do not agree. In a speech which I hope to deliver next Mon­ Mr. ROBINSON of Indiana. I had that information from day or Tuesday I shall make a summary of this entire legis­ some newspapers. I shall be glad to include also in my later lative program and of the evils that have come directly from it. remarks the information I ha\e and the conclusions I draw 1\Ir. WALSH of Montana. I trust the Senator will defer it from that information. - for a few days. I have agreed to go to the funeral of our M.r. WALSH of Montana. The list of nominees for delegatee late colleague from Michigan, Mr. FERRIS. · to the Houston con\ention sa.id to be favorable to my can­ Mr. ROBINSON of Indiana. I shall be Tery glad to defer it didacy has been published broadcast. Their names are available until the Senator gets back. at any time, and the Senator is misinformed; Mr. Doheny is Another Member of the Senate on the other side of the aisle, not among them. former Senator Owen, of Oklahoma, on the same day made Mr. ROBINSON of Indiana. 1\lr. President, I think perhaps this statement: I am in error in that. I think I had Mr. Doheny's name con­ I should like to ask the Senator bow the bill fails to protect the fused with that of George Creel, who was a publicity man Government's interests in those naval reserves. I do not clearly under­ during the Wilson administration, used, so Mr. Doheny testified, stand the point. because of his close connections with the Secretary of the Navy, Mr. LA FOLLETTE. To answer the Senator's question in just a brief Mr. Daniels. Mr. Creel, I understand, is to be one of the dele­ way, it gives trespassers who have gone upon these lands, and against gates elected in California in favor of the Senator's nomination, whom suits are pending, priority rights under the terms of this bill and I think I am in error as to Mr. Doheny. However, I have against anybody else, even in the naval reserves; and, of course, as been informed that 1\Ir. McAdoo, who also received $250,000 to the naval reserves, if the reservation provision were protected, the "from Mr. Doheny, by Mr. Doheny's own statement, is looking public would not have a.ny rights outside of these sections in this bill. after the Senator's interests among the Democrats of California. So that it 1·ewards these trespassers; it relieves them of defending their I shall not dwell further on that at this moment, rights in the courts and taking the judgment of the courts as to whether I would like to say something further with reference to this they have any equity even in this territory; and it gives them out of same Mr. Doheny, who is still at large. I quote from the REC01ID band rights in the naval reserves that they would not have except for of February 7, 1924, just a little while before the national this legislation. That is what it does. That is one thing it does. conv~ntions. o.f the political pru:ties. There was some debate on the floor of the Senate. Much of this is familiar to older Mr. President, again I innte the attention of the Senator to Members of tbe Senate; it was new to me and, I suppose, new the comment of the late Senator La Follette on page 4759 of to others. Perhaps the country has forgotten some of the the RECoRD. I shall read only one paragraph : things that took place then, and I think it might be well now I say .again, Mr. President, there are the Standard Oil and-the Mid­ again to mention a speech that was made at the Democratic West, which runs into Standard Oil, as I am told, and all the other national con\ention in San Francisco in 1920. I quote from the oil representatives who are here now and have been and have main­ RECORD: tained for months elaborate offices in this city, rich and powerful above Mr. ~ILLIS. Mr. President, I think the distinguished Senator from all calculation, and no man can stand up on this floor and suggest Missouri will not object to what I am about to read, because it i a any opposition that has been indicated anywhere at any time by those petition presented to a great convention in behalf of a noted Democrat. interests to this legislation. It has been seen heretofore. When any­ I read from page 437 of the proceedings of the Democratic National thing was pending that did not con!.orm to and adjust itself and accord Convention presided over, as I remember, with distinguished ability by with the interests of these great oil monopolies, particularly the Stand­ the enior Senator from Arkansas [Mr. ROBINSON]. ard Oil, everybody knew it; it was manifest. Everywhere in the com­ The chairman said: mittee rooms and at every stage along the legislative career of a "The Chair presents to the convention Hon. Lorin A. Handley, ot measure it was to be found. It has not been shown here any place. California, who will nominate a candidate for Vice President of the They seem to be heartily in accord with it, perfectly satisfied. UnitE>d States." And more of the same sort, to which I invite the attention Then Mr. Handley said : of the Senate. " Ladies and gentlemen, California needs no credentials in this con­ The Senator from Montana a few days ago asked me for a vention other than her electoral vote in 1916. [Applause.) We are reference to a time when he was governed largely by the adtice perfectly willing to yield the Presidency to Ohio [applause], but not of Mr. Doheny. I shall now quote the Senator's words. the glory of eleeting the last Democratic President of the United States. On page 4770 of the REcoRD of this same day, September 3, The people of the great Commonwealth of California are not interested 1919, the senior Senator from Montana is quoted as using this in the personal ambitions of any candidates for President or for Vice language: President. They are interested in this great Republic and its future. Bot I do not rely entirely, in respect to my judgment of the matter, We believe that the hope not only of our country lies in the election of upon these experts. However it may be regarded by anyone else, I the nominee of this conv-ention, but that the hope of humanity and the attach very great importance to the testimony of Mr. E. L. Doheny world rests upon it, and we call upon the patriotic citizens, not only of to the same etl'ect. It is well known that Mr. Doheny 1s one of the our State but of every State in the Union, in order that the honor of most extensive and one of the most successful oil prospectors and America might be rehabilitated and our Nation restored to her rightful operators in the world. It appears that he has no interest whatever place in the councils of the world. in any of the property within the naval reserve or in any of the "We not only want to elect the great Governor of the State of Ohio withdrawal areas, and that be has no interest in any of the lands the next President of the United States but we want to elect with him that would be patented. He does, however, own profitable and produc­ a great patriot to stand by his side to make humanity's fight. And ing oil wells throughout the State of Califomia. If he has any inter­ California has a great patriotic son. California agrees with the Sena­ est in the bill at all of an individual or per onal character it would tor from Montana, and California agrees with the Senator from Nevada be to see the bill killed, because thus the volume of oil would be re­ tbat you must not overlook ,nor forget that tbe great West is populated stricted and limited, if not reduced, and tbe value IJf his product would by free-minded and independent American citizens. [Applause.] And be proportionately increased. I can not believe, however, that he is with the great progre sive Governor of Ohio and with a great progres­ influenced either one way or the other by that consideration; but be sh-e, patriotic Democrat of the West, the West can be brought into line tells us, after his long experience as an oil prospector and an operator again as it was in 1916. And California, therefore, presents her great iu oil, the fact is that tbe wells which now exist upon the reserve are anu distinguished on, born in the State of Wisconsin. In poverty be rontinually draining the supply of oil and reducing the oil pressure, started, a surveyor over the :Southwe t, a cowboy in Kansas, a pros­ and be ventured the opinion tbat in 10 years the gas pressure would pectoT over practically every State of the West, a discoverer of the oil be so far reduced as to make it next to impossible to extract a.ny fur­ fields in southern California, and from thence be builds himself to the !her oil from tbe reserves. pinnacle of success such as every American citizen loves and admires. 1928 CONGRESSIOXAL RECORD-SENATE. 530lf

and California's son. The life of this man is a typical romance of The CHAIRMA..... 'f. Now, very well, go on with Mr. McAdoo. American improved opportunity, and we take pride, therefore, in pre­ Mr. DoHE)!Y. I employed Mr. McAdoo because of his-- senting to this convention as the man out of the West who can reach The CHAIR"MA..~. One moment. When was your employment of Mr. the hearts and the souls not only of the Democrats of the West but of · McAdoo? the great, free-thinking people of the West. California, the great golden l'l1r. DOHEXY. I think it was-I am not certain about dates. I might State, presents Edward L. Doheny for Yice President." have been a year after he left the Cabinet. He was a member of the Well, lte was voted on, and, so far as I know, has never to firm of :!\IcAdoo, Cotton & Franklin, and I employed the fi1·m-Mr. this moment JJeen repudia,ted by the party leaders. McAdoo was a member of that firm-to represent us in Washington in 1\Ir. President, I want now to quote from some of 1\Ir. connection with Mexican matters. Doheny's testimony on :February 1, 1924, before the Committee The CHAIRMAN. In Washington? Mr. DOHEXY. Yes, sir. on Putlic Lands and Suneys of the United States Senate. I The CHAIRMAX. Can you tell us the year? Well, that was about read fi'Om the printed record: a year after, you said? The CHAIRMAN, You testified that you would have been willing to Mr. DOHE~'"Y. Well, that was about a year after he resigned from the retain "Mr. Fall as you had retained Mr. Lane? Cabinet. Mr. DOHENY. Yes, sir. The CHAIRMAN. Could you furnish to the committee the exact date ot The CHAIR:\1AN. And you retained Mr. Lane, I think you testified, that employment? immediately upon his resignation as Secretary of the Interior? Mr. DOHEXY. I thlnl< I have got it on our books. Yes, sir; I am quite Mr. DoHE::-rr. Yes, sir; and I made the agreement with him before sure it is on our books. he left office. The CH.AIRMAS. And how long did Mr. McAdoo continue to represent The CHAIRMAN. Before he left the office? yon? 1.\Ir. DOHENY. Yes, sir. Mr. DoHE:NY. Mr. McAdoo continued to represent us in that regard The CHAIRMAN. Was that one of the reasons that he resigned, on until the Mexican situation was practically completed. That is, until account of your employment? the atlministration changed. 1\Ir. DOHENY. No, sir. The CHAIRlfAX. That is, he continued to represent you so long as The CHAIR!IIAN. Your offer of employment, mean? Mr. Wilson's administration remained? Mr. DoHENY. No, sir; I don't think it had anything at all to do 'vith l\Ir. DoHE:NY. So long as he was President; yes, sir. And after that it. He had two or three offet·s at the time that he resigned. He he didn't represent us in ·washington any longer, except that he repre· accepted employment with our company. sented us in Mexico. And he made a trip to Mexico in connection witb ~'he CHAIR~IAN. You never made any loans to Secretary Lane? our affairs, the Palomas Land & Cattle Co. Ilfr. DOIIEXY. No, Eir. Tbe CHAIRMAS. And does he still represent you? The CHAIRMAN. Have you employed any other Cabinet officer sub8e- 1\lr. DoHENY. A'nd he still represents us. quent to his retiring from the Cabinet? The CHAIRMAN. He still represents you? i\Ir. DOHJ~NY, Yes, sir. Mr. DOHEXY. Yes, sir. The CHAIRt.IAN. Who? The CHAIRliAN. Were his services for you during the last adminis­ Mr. DoHE::-iY. Well, I am trying to think now. I think that we tration compensated for? employed for a short time Judge Gregory, who was the Attorney Mr. DoHE:-iY. Ye8, sir. General. The CHAIR:UA-X. Will you tell the committee how much you paicl The CHAIRl\LAX. In what matter? Mr. McAdoo? :Ml'. DoHENY. He was employed by our company and other com­ Mr. DoHEXY. All told, I think, about $250,000. panies to represent us before the-to represent us before the Presi­ He was the son-in-law of the President. dent in regard to a lot of permit ~· that we were trying to get in Mexico, and that the Mexican Government was refusing to allow us to drill Now, I shall read further· from pages 1940 and 19-!1: our own territory down there. The CHAIRUAX. Has there be~n any other member of the Cabin~t or The CHAIRMA..'\. How long after l\Ir. Gregory's resignation was -that public official whom you have employed? . employment? 1\It·. DoHExY. I think so. I think Mr. Cotter was an employee of the 1\Ir. DoHENY. I don't know. I only learned of it yesterday. Interior Department before he came into our employ. lie came into The CHAIRMAN. You only learned of it yesterday? our employ '•\ith Ur. Lane. 1\Ir. Lane, when he left the Interior De· Mr. DOHEXY. Yes, sir. partment, took 1\lr. Cotter with him. Mr. Cotter had been a sort of au The CHAIRMAN. Through whom did you learn that? amanuensi.<; for him, and he needed him in his work generally, and he Mr. DoHENY. Through our books. Went through out· books for came into our employ at that time, and he is still in our employ. answers to just these questions that yon are asking about. ~'he CHArn~IAN. He is vice president of one of your companies'? The CHAIRMAN. And your company bad employed Judge Gregot·y? l\ir. DOHE::Ii"Y. He is vice president of one of our companies; yes, sir. M'r·. DoHEXY. Yes, "'ir; our company and a half a dozen othet· com­ The CHAIUM.A;x, What was Mr. Lane's employment, Mr·. Doheny? I panies. The employment was made by the Island Oil Co., for which mean what were his duties? he was the attorney, and he represented a number of companies, and Mr. DOHEXY. l\lr. Lane was assistant to the president. the Island Oil Co. billed us for $2,000 as om· share of the fee that they The CHAIRMAN. He \vas assistant to you? paid J•ldge Gregory for this particular work. Mr. DOHENY. Yes, sir. The CHAIRMA-K. In all matters? I ttun now to page 1938 : Mr. DOHE~Y. In all matters; yes; adViser o.n ever·ything. And Mr. Gregory, who had been Attorney General, was employed to The CHAIRMA.."\"". Both as to matters that you hau before the Depart­ do what? ment of the Interior, and all other matters? :Mr. DoHENY. To represent these companies in tiling their petitions Mr. DoHI:xY. W'ell, I don't remember about the Departm~nt of the before the State Department or the President, I don't know which, Interior, but he advised me on all matters regardless of what they asking for the intervention or their good offices in connection with were. our demands that the l\Iexican Govemment give us the right to drill The CHAinM..I.x. I see. "lUr own lands. 1\lr. DOHESY. But I don't think he ever went before the Department I turn now to page 1939: of the Interior as a counsel for us. The CR.HRMA.."\"". And what was Mr. Lane's salary? The CHAIRMAN. Now, have you employed any other ex-Cabinet officers? Mr. DOHE:'i'Y. $50,000 a year. These are Democratic Cabinet officers. 1\lr. President, I shall not read what was said with I'eference Mr. DOHE~. Yes, sir. to 1\Ir. Garrison, but Doheny admits that Mr. Garrison, who The CHAIR MAX. Who? had been Secretal'Y of War in the Wil~on administration, was ~L·•. DOHENY. -At the time when our properties were greatly menaced also employed by his company. in 1\Iexico by the hostile attitude of the Mexican Government I employed 'That is fonr-- ex-Secretary 1\IcAdoo. Mr. W .A.LSH of Montana. Mr. President, will the Senator The CHAIRMAX. One moment before we get to Mr. McAdoo. What yield? was the total amount of money paid to Judge Gregory? l\lr. ROBINSON of Indiana. Yes. Mr. DOHEXY. I don't know. l\lr. WALSH of l\lontana. The Senator has again referred The CHAIRMAN. You say your company paid $2,500? to the employment of ex-Secretary Lane br Mr. Doheny. l\!L'. DOREN¥. Our company paid $2,000. I don't know what the -without really desiring to enter into any discussion with the total amount was. Senator concerning the propriety or impropriety of the employ­ The CHAIRMA..~. But your company was a sessed $2,t:i00 for its share? ment, I would like to inquire of the Senator if we are to uncler~ l\f_r. DOHE~x. No; $2,000. stand from him that while Frailklin K. Lane was Seeretary of 'l'be CHAIR MAX. $2,0001 the Interior he extended any favors of any character whatever Mr. DOH.E""Y. Yes. to l\lr. Doheny? 5302 CONGRESSIONAL RECOR-D-SENATE · :l.L.\RCIT 24 1\lr. ROBINSON of Indiana. I do not mean to imply any­ Mr. 'ROBINSON of Indiana. I am attributing to tile Sen­ thing. I am reading from the 1·ecord. atOI·'s words which I quoted a while ago the usual meaning Mr. WALSH of Montana. Oh, yes; of course the Senator is given to language of that kind. I'eading from the record, and the record shows that aft~r 1\lr. :Ur. WALSH of Montana. Judgment on what? Lane retired from the office of Secretary of the Interior he went Mr. ROBINSON of Indiana. Does the Senator desire me into the employ of 1\Ir. Doheny. It shows further, as the Sena­ to read it again? tor told u , that before be re igned there was an agreement that llr. WALSH of :Montana. No ; I have clearly in mintl the he should do this. That is important only as it can~ies ""ith it language. The Senator from Montana relied upon the judg­ an implication or an intimation that Secretary Lane did some­ ment of lli·. Doheny as to the likelihood of lands within the thing wrong when he was Secretary of the. Interior. I should reserve being drained by wells outside of the reserve. like to know from the Senator-- Mr. ROBINSON of Indiana. Yes; and the Senator went Mr. ROBINSON of Indiana. J am not making any intimation further and said Mr. Doheny was a disinterested per on. of that character. Mr. W A.LSH of Montana. That was my information. Mr. W .A.LSH af Montana. No: the Senator is not making Mr. ROBINSON of Indiana. But the Senator would not any inference, but he is quite willing the public should draw an say that now, would he? inference. l\.lr. WALSH of ~fontana. Perhaps I would not; but that is 1\lr. ROBINSON of Indiana. The public is quite well able to neither here nor there. draw its own inference. l\Ir. ROBIXSON of Indiana. Oh, I know. I only want to Mr. WALSH of Montana. If the Senator does not intend to show that the Senator can be mistaken. I am charging the indicate hy this that Mr. Lane is subject to any criticism what­ Senator with nothing wrong. ever for anything that he did while he was Secretary of tl1e ~Ir. W .ALSH of 1\Iontana. Oh, no; certainly not; but why Interior, I have not any fm·tber inquiry to make. is the Senator referring to that statement if there is nothing Mr. ROBINSON of Indiana. Let me ask the Senator a ques­ wrong? tion. Here were four Cabinet officers in the last Democratic 1\lr. ROBINSON of Indiana. I refer to it again in order administration all hired by these oil interests. Does the Sena- that the Senate and the people may draw their own con­ . tor think that was perfectly proper? · clusions. Mr. W ALSII of Montana. I do not care to discuss that. Mr. ·wALSH of Montana. So that the people can draw con­ Mr. ROBINSON of Indiana. Nor I. clusions that the Senator does not dare draw himself? :Mr. WALSH of Montana. As I said a moment ago, I do not ::.ur. ROBINSON of Indiana. l\!r. President, the Senator is car~ to discuss it. a candidate before the people for the presiuential nomination Mr. ROBINSON of Indiana. I shall discuss it later, I may on the Democratic ticket, and, therefore, must be an issue say. more or less before the people at tllis moment. I only discu s Mr. WALSH of Montana. 'Wbetl1er it is proper or whether indi'"idua1s as they are connected with issue . it is inlproper, all we are interested in, so far as I can see, is Mr. WALSH of Montana. Oh, ye ; the Senator from Mon­ whether these officers f-aithfully discharged theii· duties while tana is perfectly willing that his entire record shall be earched, they were in office. a" it has been for five years past, but never mind about that. Mr. ROBINSON of Indiana. I am "\-Villing to trust the intel­ I want to call attention to the fact that what the Senator is ligence of the American people on questions of this kind. G i 'e endeavoring to convey, if I am not in error, is that I relied . the people the facts and they will di·aw their own conclusion·, upon the judgment of )\,fr. Doheny concerning the Trisdoru of and usually correctly. that legislation. That is not true. Mr. WALSH of :Montana. The Senator would not draw any Mr. ROBINSON of, Indiana. Then I invite the Senator's conclusion that they had done anything wrong wl1ile they were attention again to that language and ask him to draw hi~ own in office, would he? conclu ion, and I will accept it. Mr. ROBINSON of Indiana. I am drawing no conclusion. I l\Ir. WALSH of Montana. I am ~peaking about what the am stating the facts as they were testified to under oath by Mr. Senator said. The Senator said nine months after I e:xpres ed Doheny. myself as "relying on the judgment of 1\lr. Doheny." I relied Mr. WALSH of Montana. I understand perfectly well what on the judgment of Mr. Doheny, as the context will show, upon the Senator is doing. The Senator will not stand up in this his assertion that wells outside of the reserve were draining body and say that in his judgment the inference is properly the oil from within the reserve. drawn that they were faithless in any respect to their charge, Mr. ROBINSON of Indiana. The Senator still relies on the but he is perfectly willing that the public outside shall draw judgment of Mr. Doheny that far, does he not? that inference. Mr. WALSH of Montana. There is no occasion for my rely­ Mr. ROBINSON of Indiana. In the summary I hope to pre­ ing on it. sent of this whole question, whiCh I shall deli'"er when tlle 1\lr. ROBIXSON of Indiana. That is what I am asking the Senator is in his seat, I shall draw some conclusions of my Senator. own, and shall not hesitate to draw those conclusions. Mr. WALSH of l\Iontana. The fact with reference to the Mr. President, I must hasten along. I _ha\""e already taken matter spoken of there, as the record will show, demon trated more time than i had e).rpected at this time. I have very little that the wells outside of the naval reserve No. 2 were in fact more about Mr. Doheny that I care to mention now. draining the oil from within reserve No. 2, and that Secretary In June, 1920, nine months afte1· the Senator from Montana Daniels recognized it was the fact and provided fo1· the inking had introduced 1\!r. Doheny as the man on whose judgment he of 22 offset wells in order to overcome conditions there re­ relied and four months after :Mr. Doheny had employed Sec­ ferred to. retary Lane immediately upon his resignation, by reason of Mr. ROBINSON of Indiana. Does the Senator still indorse an agreement made prior to that resignation, the Democratic this leasing act which was passed in February, 1920, and the National Convention met in San Francisco. The official pro­ rider on the naval appropriation bill passed in Jtme, 1920? ceedings of that convention show that Mr. Doheny was one of l\Ir. W .ALSH of Montana. The Senator will answer un­ four delegates at large from the State of California. They aLso equivocally that I had a part in the passage of the l-easing act show that he was a member of the committee on platfonn. Pre­ and I take pride in that fact. sumably he wrote the petroleum plank in the Democratic na­ Mr. ROBINSON of Indiana. That is what I wa.ntetl the tional platform of 1920, which began as follows: Senator to say. · 1\lr. WALSH of Montana. The Senator can have that at nny The Democratic Party recognizes the importance of acquisition by ' Americans of additional sources of supply of petroleum and other min­ time. I might say further that I had not a thing on earth to erals, and declarPs that such acquisition, both at home and abroad, do with the act of June 4, 1920. ought to be fostered and encouraged. Mr. ROBINSON of Indiana. The Senator ·was in the SenatE> when it was passed, was he not? . Mr. WALSH of Montana. The Senator has made another Mr. WALSH of Montana. Oh, yes. · reference to the Senator from Montana with respect to which I Mr. ROBINSON of Indiana. The Senator did nothing to ' would like to ask a question. He spoke about this as being prevent its passage? ·nine months after the Senator had declared that he relied on the ~Ir. WALSH of :Montana. No; I did not, nor did any other judgment of 1\"lr. Doheny. Senator. It passed without objection from anybody. ! . Mr. ROBINSON of Indiana. Yes. Mr. ROBINSON of Indiana. l am not speaking about any - Mr. WALSH of Montana. Just what does the Senator mean individuals. I just asked the Senator. by saying that the Senator from Montana relied on the judg­ Mr. WALSH of Montana. But the Senator would have again ment of Mr. Doheny? drawn an inference which is not in accordance with the fac ts. 1928 CONGRESSIONAL RECORD-SENATE 5303 Mr. ROBINSON of Indiana. Mr. P1·esident, I am trying to used language which, perhaps, will answer the question the state the fact· fl·om the record, and then the Senator can draw Senator from Montana propounded to me a moment ago. I his own conclusions from my remarks and from the facts. now quote the Senator from Washington: I had just quoted the plank or part of the plank on oil which, The testimony this morning shows that Mr. Doheny has had in his I am informed, l\Ir. Doheny wrote for the Democratic National employ since they left President Wilson's Cabinet' four of his Cabinet ConYention at San Francisco in 1920 when he was one of the officials. What do these things mean to the country? They mean delegates at large from California. that the whole country begins to wonder whether anybody can be l\Ir. WALSH of Montana. I would like to ask the Senator found who is clean and who can be trusted. another question. Mr. ROBINSON of Indiana. Just wait until I finish this Oil wili not be an issue next November, 1\Ir. President, in my paragraph about that plank and then I will yield. judgment. But the Senator from Washington mentions four This plank was read along with the rest of the platform by Cabinet officers. I discovered another one, more or less acci­ CARTER GLAss, now a Sena tor from Virginia, who was chair­ dentally, who is out on the trail of oil. Understand I do man of the platform committee, and the official report of the not question his motives in the slightest degree, but Mr. Sin­ proceedings of the convention states that the reading of this clair has been thoroughly discredited-! suppose everyone ~ill particular plank was received with applause by the convention. admit that-and was thoroughly discredited in 1925. I would 1\Ir. WALSH of Montana. I would like to inquire now of the not do anyone an injustice for the world; I do not know how Senator from Indiana if he will kindly read the plank again reliable this authority may be; but I quote from it for what­ and then tell us what objection he finds to it. ever it may be worth, assuming that it is reliable. 1\Ir. ROBI!'\SON of Indiana. Again, I am not undertaking to The title of the book which I hold in my band is "Oil find any objection to these facts except as I state my objection, imperialism-The international struggle for petroleum." by but I am trying to state the facts fairly and impartially. • Louis Fischer. From page 195 of this book, under the head, l\lr. ·wALSH of Montana. Of course, but if the plank is un­ "United State·, Japan, and Russia," I quote the following: exceptionable, why state the fact? It is true that Robert Lansing, former "United States Secretary of l\Ir. ROBINSON of Indiana. My judgment of it is that there State, who had been retained by Sinclair, addressed a letter to the was no occasion to have an oil plank in the platform at all. company on March 12, 192;>, in which he disputes the soviet right of That is my opinion of it, if the Senator wants my honest annulment. Yet he admitted in the same communication that the con­ opinion. No; oil will not be an issue next November when the cession contract obliged Sinclair to carry out one drilling operation people know the facts. The rank and file of neither party will before the end of the second contract year. This Sinclair had not permit it to beco~e an issue. done. But that was not the end of Mr. Doheny's very distinguished I shall not read further and detain the Senate longer with and valuable services as a leader of the Democratic Party in this book. I simply im-ite the attention of any who may be · 1920. According to his testimony before the Senate Committee interested to the book-Oil Imperialism, by Louis Fischer­ on Public Lauds and Surveys on December 3, 19-23, he con­ and I cite it for whatever it may be worth. tributed $75,000 to the Democratic Party campaign fund that So I say to the Senator from Washington that here is a ~-ea r, $50,000 of which was apparently contributed during the campaign and $25,000 of which was contributed after the elec­ fifth Cabinet member of the Wilson adminish·ation who has tion. at the solicitation of Mr. George White, chairman of the gone out in the pursuit of oil and taken employment under Democratic National Committee, for the purpose of wiping out Harry F. Sinclair, the erstwhile racing commissioner of New a deficit. So here we have the direct evidence that oil money York. has reached the Treasury of the Democratic National Committee. 1\IL'. President, I invite the attention of the Senate to the fact Mr. WALSH of Montana. That is just another particular in that, according to sworn testim<,my. there were employed by which the Senator from Indiana seems to be uninformed. Mr. Doheny, a former Secretary of the Interior, a former Attorney Doheny testified that he gave $75.000 to the Democratic com­ General. a former Secretary of the Treasury, and son-in-law mittee, $25,000 of which was given in the year 19-21, the of the President, and a former Secretary of War; and I recently remainder in 1920. Mr. George White, however, who was chair­ learned, if this authority be reliable, that a former Secretary man of the Democratic National Committee, went on the stand of State in the same administration has been employed by and denied that Mr. Doheny gave any sum in excess of $34,000. Sinclair. I mn disposed to let it go with that statement of the facts. l\fr. BARKLEY. l\fr. President, will the Senator from Indiana Mr. ROBINSON of Indiana. Was the Senator at that time yield to me? in 1920 still convinced that Mr. Doheny's reputation for The PRESIDING OFFICER. Does the Senator from Indiana veracity was good? yield to the Senator from Kentucky? Mr. WALSH of Montana. The testimony which was given-­ 1\Ir. ROBINSON of Indiana. I :rield. Mr. ROBINSON of Indiana. Does the Senator mean to sug­ 1\Ir. BARKLEY.' If the legal employment by oil interests gest now that Mr. Doheny perjured himself on the stand? after retirement from the Cabinet is a matter of suspicion, what Mr. WALSH of Montana. The testimony which was given has the Senator to say about the fact that former Secretary by Mr. Doheny was in 1924 and not in 1921. Hughes now represents and is legal counsel for the Petroleum Mr. ROBINSON of Indiana. Well, in 1924. Institute of America, which includes all the oil interests in this Mr. WALSH of Montana. Of course, I do not intend to say country? that Mr. Doheny perjured himself. He was simply mi&taken Mr. ROBINSON of Indiana. I am not discussing Mr. about tbe amount given. Hughes, and that makes no particular difference. Nor am I Mr. ROBINSON of Indiana. The Senator means to say that saying that any of this employment was illegal or that it was Mr. Doheny was mistaken about it? unethical or improper ; I am only showing the trend of these Mr. "~ ALSH of Montana. I do. former Cabinet officials in the direction of oil employment. 1\lr. ROBINSON of Indiana. The Senator means Mr. Doheny Mr. BARKLEY. Is the Senator unable to draw any difference had thought he gave $75,000 and did not? between emp~oyment legally after retiring from the Cabinet Mr.''ALSH of Montana. Yes; exactly. While l\lr. White-- and employment illegally while in the Cabinet? 1\lr. ROBINSON of Indiana. Mr. White's testimony, as Mr. ROBINSOX of Indiana. 0 Mr. President, I am not de­ given-- fending anybody. I say that this man Dohenv and this man Mr. WALSH of Montana. Mr. White spoke positively about Sinc1air are bipartisans; they have no party. I~ say they go out the matter, and I take his recollection about the matter rather and do what they can to corrupt leadN'S in both parties wher­ than Mr. Doheny's. ever possible. I say they deserve no consideration whatever. Mr. ROBINSON of Indiana. I was just going to say about In my judgment, and I am willing to be quoted on this, both l\Ir. White that a search of the records of the Clerk of the of them deserve prison terms. House of Representatives shows that the Democratic National 1\Ir. President, five Cabinet officers were employed by the oil Committee made a return of only $9,800 as Mr. Doheny's con­ interests that profited or expec-ted -to profit from the Teapot tribution; in other words, the record shows that the Democratic Dome and Elk Hills leases. It i · rather significant that now National Committee's officials, if 1\Ir. Doheny's sworn testimony the most prominent Democratic leader in the LTnited States is js to be credited, must have concealed $65,000 of the contribu­ discovered to have had as his racing commissioner up until tion it received from Mr. Doheny, who was a member of its the latter part of 1925 the same Harry F. Sinrlair. committee on platform and who was interested in the petroleum So it extended acros-· the- continent. In 1024 the Go\ernor plank. of New York, who at that time had in his administration Well, Mr. President, we will not go into that any further. Harry Sinclair, wa'"' a randidate for President on the Demo­ I want to quote now from the junior Senator from Washington cratic ticket at Madison Square Garden. In that same conven­ [Mr. DILL]. On page 1805 of the RECORD of the proceedings of tion William Gibbs 1\IcA..doo. from the other side of the country, this body, on February 1, 192-!, the Senator from Washington California, who recei \ed $250,000 of Doheny's money, was a

/ CONGRESSIONAL RECORD-SENATE ~!ARCH 24 candidate for President. These are pr<>mineut leaders of the The I'emainder of the section to rend as in the conference Democratic Party, to say nothing of Doheny and Judge Gregory report. and the others. Ur. Pre-sident, the purpose of the amendment which I desire Mr. :President, with the Governor of New York now a candi­ to offer is to eliminate the ambiguous language that is admit­ ilate for President, \Yith the Senator from Montana [Mr. tedly and confessedly in section 5 of the bill. In that section WALSH] now a candidate for President, who admits having such language is used as to make it confusing to those who are been acttve in bringing about this legislation and having taken to interpret the act. 1\Iy position is that we should pass an at least on some matters the advice of Ur. Doheny, and whose act about which there can be no misinterpretation. What we campaign is being largely managed, according to press reports, mean to say by this proposed legislation, and what the Senator in California by the same -:Mr. l\lcAdoo, it would seem that oil from Indiana and what the Senator from Washington and will not be an issue in the campaign next November. other Senators who are favorable to the legislation say that it . :Mr. President, I think I have nothing more to say on this means radio power shall be divided equally among the Yarious J:ubject at the present time. As soon ·as the Senator from zones as soon as applications therefor are made. That is the :\fontana shall have returned I hope to speak again and draw whole thing in substance. That is what they say this language fo:ome conclusions, and at that time I think I shall be able to means. If it means that, why not say that and not ay any­ show conclusiyely when, where, how, and by whom this con­ thing else? Why put in the act words that may give ri e to spiracy was hatched to defraud the United States Govern­ confusion? ment and the people of the United States of the naval oil If we had a commission that was favorable to the legislation, reserYes. if we had a commL"Sion that wanted to distribute fairly and RADIO REGULA.TIO~-cO~FERE.. l\""CE REPORT justly, as sho\vn by its acts in the past, I am rather inclined to :Mr. ~IcKELLAR. ~Ir. President, a parliamentary inquiry. think that we could well let this language go in. When, how­ What is before the Senate? ever:,ve are confronted by a commission that does not want to The PRESIDING OFFICER. The migratory bird bill is distribute· equally, that bas given three great broadcasting ad­ before the Sen at~. and the pending question is on the amend­ \erti ~ ing stations one-fourth of all the power in this country, it mE:>nt of the committee. does seem to me as sen ible men that we ought to pass a bill Mr. CURTIS and )fr. WATSON addres. ed the Chair. that is free from misconception, one about which there can not Ur. OUR.TIS. Does the Senator from Indiana desire to be any doubt. make a request? So, for that reason, "Yr. President, I h::n·e made this motion, Mr. WATSON. Ye ; I wish to request unanimous consent and I hope it will be adopted. that the unfinished business may be temporarily laid aside so The VICE PRESIDENT. The Chair will state that under that we may conclude the consideration of the conference report the- precedent· goYerning the recommittal of conference reports on the radio bill. a motion to recommit a conference report is not in ordel' where The PRESIDING OFFICER. Is there objection to laying the other House has agreed to the repo1·t, inasmuch as the con­ asille temporarily the un:finisheu bm-ine ? ferees on the part of the body agreeing to the report have l\!r. ~IcKELLAR. Xow, Mr. President, I wish to be recog­ thereby been discharged. nizeu. :i\Ir. McKELLAR. I am familiar with that ruie, and I am )Jr. TYDIXGS. :\Ir. President, I do not want to object, but not inclined to differ with the Chair about it; but I have made I should like the Senate to permit me to say a few words, this motion hoping that the point of order would not be raised eonsuming about 10 minutes, in reference to the subject the and that thi · rna tter could go back to conference. Of course, F:enator from Indiana [l\lr. Ronrxso~] has just been dis­ the only way in which we could send it back to conference, as I cus-sing. understand the ruies, is to vote down the report and then ::\Ir. WATSON. The Senator from Maryland can say what instruct the conferees. I do not know whether or not that can he desires to ..., ay when the conference report is before the be done.- ~E:>nate as well as he can when the bird bill is before the ! want it understood, though, that with this confusing lan­ ~enate. guage in it I --hall Yote against the conference report. I should The PllESIDIXG OFFICER. Is there objection to the re­ like to vote for it. I want to help in the equal distribution of quest of the Senator from Indiana? The Chair hears none, radio. I want it to be f1·ee from any misconception or misunder­ and the unfinished business i:s temporarily laid aside. standing. It i' for that reason that I have made the motion. The Senate re~mined the con~ideration of the report of tbe I want to make my objection perfectly plain, and I hope I haYe committee of conference on the disagreeing YOtes of the two done :o;o. Houses on the amendments of the Senate to the bill ( S. 2317) It is perfectly manifest that if a fair distribution of this continuing for one year the powers and authority of the Federal power is not matle by the Radio Commission it will be becau e Radio Commission undN~ the radio act of 1927. of this confu::;ing language; and it eemed to me that it ought to The PRESIDIXG OFFICER. The question is on agreeing to be striekeu out in the interest of good legislation. I hope these the report. The Senator- from Tennes. ee [~Ir. McKELLAR] is gentlemen are right. I belieYe that the commission can go for­ recognized. ward and dbtrilmte the power equally under- this law. They Mr. McKELLAR. Mr. President, I wish to make a motion can do it; they haYe a perfect right to do it; but with the with reference to the conference report on the radio bill. I record of the commission before us, and especially with the will read the motion my elf· record of ~Jr. Cald\Tell-who, I understand, is employed by a I move that Senate bin 2317 be recommitted to the committee subsidiary of one of the e companies-we can not expect an of eonference of the two Houses with instructions to the Senate equal distribution. ''hen we Yote for this conference report we conferees to insist upon the following amendment: In the :first are Yoting in the interest of the unfair and unjust distribution clause of section 5 stlike out the. following language : that we now haYe, in my judgment, so I shall vote again t the SEC. 5. The second paragraph of section 9 of the radio act of 1927 is adoption of the report. amended to read as follows : The 'ICE PRESIDEJ\"T. The question is on agreeing to the ·• It is hereby declared that the people of all the zones established by conference report. section 2 of this net are entitled to equality of radio broadcasting serv­ The report was agreed to. ice, both of tr.ansmls ion and of reception, and in order to provide OIL SCA~DALS AND CAMPAIGN COX'IRIBUTIONS .·aid equality the licensing authority shall as nearly as possible make and maintain an equal allocation of broadcasting licenses, of bands of l\lr. TYDINGS. l\Ir. President, the Senator from Indiana frequency or wave lengths, of periods of time for operation, and of [l\Ir. ROBIN O~"] has been o excited and, it appears to me, o station power, to each of said zones when and in so far as there are hysterical about an alleged appointment made in the State of applications therefor." New York that, if I may use his own words, I may ob;oerve that he has not shown the great calm of which be speak·, And in lieu thereof to insert such langunge as to make the which dignified and great statesmen always use. In fact, his first clause read as follows: original and pregnant observation that "Birds of a feather SEc. 5. The second paragraph of section 9 of the radio act of 1927 is flock together" is so apropos of what I am shortly about to amended to read as follows : mention that I think it will go ringing down the corridors of " It is hereby declared that tbe people of all the zones established by time, or at least down the corridors of the Senate, as long as section 2 of this act are entitled to equality of radio broadcasting, the Senator from Indiana is a Uembel' of this body; for, when both of transmission and of reception, and the licensing authority we analyze the Senator's remarks, all that we get from them shall as nearly as possible make and maintain an equal allocation of is that what he knows about the alleged affair of which he con­ broadca ring licenses, of bands of frequency or wave lengths, of periods tinually speaks is what he reads in tbe papers; and it occurs of time for operation, and of station power, to each of said zones." to me that jf his imagination is so vivid he would han~ been • 1928 CONGRESSIONAL RECORD- SENATE 5305 a. ti·emendons success iri the field of fiction had he selected that His son-in-law was prosecutor. Be-cause of tl1e delicacy of particular field of endeavor. the situation, the prosecutor was resigning. So the eonspira· In order tlu1t I may not misstate the facts I have reduced tors, I am informed, proposed to seize this key position ; and to them to writing, and, with the Senate's forbearance, will en­ do this they offered the penniless and despairing gove1·nor deavor to give them to you for whatever they may be worth. $10,000 and a guaranty of immunity from. conviction for his The Senate will recall that an honest public servant, the late official misdeeds before any jury in any State court in Indiana. · Senator Samuel M. Ralston, had died in 1925, and it became And the governor knew they were powerful. Jackson, Ooffin, · necessary for the GoYernor of Indiana to appoint a successor. Stephenson-they were names to conjure with. They repre­ The exact manner of that appointment and its reasons remain sented the disciplined hate and prejudice of 300,000 citizens in · a mystery to the country at large, and I may say they have bed sheets. That may sound comical now, but it did not so · become more of a my tery than ever in the past few days, when sound in the condition of affairs in Indiana in 1923. we have just heard the Senator; but I understand there is con­ Governor McCray sat there with the sweat rolling down his siderable evidence in Indiana as to the manner of its accom­ face and made his choice. It was an honorable choice and pli hment. expressed in ringing words. The GoYernor of Indiana was then and is now Ed Jackson. I "Go back to those who sent you and tell them I have lost speak of him more later; but now it is sufficient to say that it my fortune, I am losing my position, I may lose my liberty; is reported in Indiana that he first offered the position now but if I accepted your offer I would lose my self-respect, and I filled by the Senator to one of the outstanding business men of refuse," he said. the State. The latter went home to talk to his wife, and when And what was the reason the conspirator's wanted to control he called up the next day to inform the governor, he would the prosecutor's position? A. told in Ed Jackson's trial, they accept he was told indirectly that the governor had changed believed that the prosecutor's office could control the yotes of his plans and that another man had been named, the same man 10,000 of the denizens of the underworld, and who now sits in this Chamber. throw that much support to Ed Jackson in his candidary for I am also informed that the governor during the night on governor. which hfs mind was so suddenly and my teriously changed had And incidentally to throw that much support to D. C. conferred at length with one George Coffin, Republican county Stephenson in l.tis plans to kidnap and gut the government of chairman of Marion County, in which Indianapolis is situated. the State of Indiana! As unholy a purpose and as vile a con­ "Please bear his name in mind also. It is sufficient to say here spiracy, carried out in as cruel a fashion, ever stained the that he had for 20 years been a personal and political fl:iend as of the appointee who now sits here, or I am so told. pages of the history of a State. · And if Indiana report is colTect-and this is a matter upon When the governor came to tl'ial some weeks ago he listened 'vhich I particularly desire the Senator to inform. the Senate to five witnes es telling in detail the story of the attempted aftt>r I shall have concluded-across that conference there fell bribe. Then, without a word of confuting evidence, his attor­ a shadow and a malign influence from a cell in a county jail neys moved that he be acquitted on the ground that the con­ 25 miles away, the shadow of one D. C. Stephenson, the mention spiracy occurred late in 1923 and the indictment was not of whose name is sufficient to soil the lips of him who utters returned until 1927. The statute of limitations voids Imliann it. Formerly grand dragon of the Ku-Klux Klan in Indiana, crimes after two years from their commission, and the State l1ad reported to have been ambitious to seize that organization in 22 not been able to prove concealment of the c1ime, which would States, he had lost his position af-ter a quarrel with its other have in turn voided the statute of limitations and permitted dictator , and-1 am informed-he was then lying in his cell conviction. in Noblesville, Ind.. awaiting trial for the dastardly crime for Sufficient to say of Ed Jackson, the ostensible source of the which he is now in life servitude in the Indiana State peniten­ appointment I am discussing, that, I am informed, 90 out of tiary. 100 Indiana citizens believe him guilty and writhe with impo­ For two years before this appointment of which I speak tent hame and anger at his continued presence in the goyer­ St.epl.tenson, I am informed, had been the unquestioned dictator nor's chair. of the Republican organization in Indiana. I am told he walked But the State i& not done with George Coffin, the governor the fioors of a State convention of that party with a gun hol· and tl!e Senator's-I am informed-personal and political pal. stered on his hip, and with two goril1alike bodyguards in at­ He goes on tl'ial May 2 next for the same offense. I am. in­ tendance, and that there were few men there who did not quail formed that the State has discovered new evidence to prove at the glance of his eye and hasten to do his bidding. Even concealment, and that unless the sudden and mysterious illness a he lay in his cell, awaiting trial for a crime the gory details of an impo1·tant witness hampers the prosecutors-as happened of which sicken the imagination, there were many. many per­ in the governor's trial- they hope to establish concealment and sons eager to do his bidding-or so I am told. thereby establish in the eyes of the law the guilt which public Out of that triumvirate-or so I am told-came the appoint­ opinion of Indiana has already established. ment which concerns us to-day. Perhaps the Senator will speak I am keeping the Senate too long, and I am laying . before it as ft-ankly upon it as he has on other appointments upon which a 11istory whose sordidness can only be excused on the ground he has possibly a less profound knowledge. that it is so pertinent here. A few more 1·eports from Indiana­ Now, as to the evil in:flnences of bad companions-a copy­ the correctness of which I hope the Senator will late~ enlighten book maxim which the Senator has so eloquently expressed us-and I am done. • in his profound and original dictum-" birds of a feather fiock I am. ~nformed, for example, that in his forthcoming cam­ together." paign for renomination the Senator will be without the sen-ices Who is Ed Jackson, who made the Senator's appointment? of his campaign manager of two years ago, one Ora J. Davies, He campaigned in D. C. Stephenson's car for the governorship of Kokomo, Ind. Davies, I am told, was former State treasurer of Indiana; and the latter, I am informed, claims that he spent of Indiana, and while in that position placed a large amount o! 73,000 to elect Jackson governor, which he did upon a woeful State funds in a bank which later failetl. D~ring investigation llay of a weeping week of a feurful ·year for Indiann., the year of the affairs of the bank, it is aid, it was disclosed that the 1924. Senator's former campaign manager had gotten a rake-off of The governor was indicted last summer along with-whom do 1 per cent yearly on the funds he had o deposited, and he will you suppose?-the Senator from Indiana's old personal and b~ kept from managing the Senator's campaign because of the political friend, Mr. George Coffin. What was the charge? It U?for~nate necessity of ~nswer!fig an indictment charging was that upon a day late in 1923 Ed Jackson, then secretary VIolation of the State banking laws of Indiana, upon which he of state, canied to the then governor, Warren T. 1\icCray, an may soon go to trial. I am. also informed that the indictment offer of $10,000 and immunity from conviction in the State bas unfortunately compelled this man to surrender a lucrative courts if he would name a certain man prosecutor of Marion position as· receiver of a national bank at Noblesville, Ind., to County, in which the city of Indianapolis is situated. Jackson which he had been appointed by the Treasury Department, upon bad come straight from anothet~ of those unholy and secret con­ the recommendation, so it is said, of the Senator whose ap­ ferences in which the Senator's friends seem to specialize, ac· pointment is in question here. Perhaps he will inform the cording to report. Senate whether his own indebtednes to the kindly offices of an Gov. Warren T. :McCray-you have all heard his name. He appointing power led him to perform the same kindly offices had at that time lost hi fortun-e and was faced with indictment for his former campaign manager. for misuse of the State's funds. He wa · later convicted in the I must hurry on, but I pause to remark that the great 8t.ates­ Federal courts of fraud through the mails and sent to Atlanta man and political genius who helped conduct the Senator's peuitt>ntiary. But the people of Indiana have about concluded election campaign of 1926 as chairman of the Stnte Republican tbat he was much the more honorable man in that conference committee, Clyde Walb-who benefitetl the Senator's campaign tlult day. S9 much by cb_arging that the !nternational bankers had con- L....~IX--334 5306 COKGRESSIO:NAL R.ECORD-SENATE ~lARCH 24 tributed millions of dollars to the Democrats of Indiana to of the State committee; that the governor asked particularly if defeat the Senator and. his running mate and so brought the the Republican State committee desired the appointment of Reed investigation committee into the State---is now out of myself; that he was informed by the chairman of the State office as titular leader of the embattled Republicans of Indiana committee that that was the wish and the recommendation of becau e of the unfortunate necessity of answering an indict­ the State committee; that largely on that recommendation the ment charging violation of the national banking laws, upon governor acted, decided to make the appointment, and sent for which he shortly will be brought to trial. me to come to the executive mansion that night. I can not here mention the minor members of the Senator's I arrived there about 8 o'clock in the evening. The governor particular flock or galaxy-the birds with whom he has been informed me that he had decided to appoint me to t11e United tlocking and whose plumage is presumably, according to his States Senate, to tlle position left Yacant by the death of my own masterful apothegm on this floor, similar to his own-a very dear friend, Hon. Samuel M. Ralston. who bad served as convicted mayor of his home city, elected under the same aus­ a distinguished Member of this body on the other side of the pices which brought the Senator to serve his country from this Chamber, who, I may say, had been governor of our great floor a half dozen indicted councilmen, and so on almost with­ State during two year.· of the time I happened to be a member out ~umber. of the State senate and at the same time the Republican floor I might venture to ask, however, if the legal birds with H~ ader, and for whom I bad alwas·s the highest regard, and whom the Senator has flocked-his Indianapoli law firm-has whose memory to-day I cheri ·h. I accepted the appointment. not done a large business in repre enting bootleggers and other That is the whole story. violators of the prohibition laws in the courts of Indiana In the campaign that ensued immediately I was opposed by while the Senator, I am told, has gone hither and thither four candidates in my party for the nomination for the unex­ about the State mah"ing speeches under the auspices of the pu·ed term of my good friend Senator Ralston. In a field of Anti-Saloon League, which paid his expenses, upholding the five I was nominated by a majority over the entire field of sacredness of the prohibition law whose workings have been so nearly 75,000, notwithstanding the fact that the. e very malicious profitable, as well as acred, to these legal flocklings of the campaign lie and insinuations just uttered by the Senator from Senator's. Maryland-- I might inquire also as to his tender solicitude for the Mr. TYDINGS. Will the Senator yield? superintendent of the Anti-Saloon League of Indiana, who was Mr. ROBINSON of Indiana. Not now. Were used in that convicted of contempt of the Supreme Court and sentenced to campaign against me from one end of the State to the other. jail I am told the Senator was accused, out of the letter file In the campaign thnt followed-- of a distinguished colleague, of seeking to bring to bear in­ l\fr. FESS. Mr. President, will the Senator yield to. me? fluence on that court in order to void or ·mollify the sentence Mr. ROBINSON of Ind.iann. I yield to the .Senator from of the Anti-Saloon League leader. This is bard to understand. Ohio. All these matters are hard to understand for one who has not Mr. FESS. I think we are getting a little loose in our lan­ been trained in the peculiar politic · of Indiana, but for the guage. The Senator from Maryland, I think, violated the Senator's mind, which has shown such a profound grasp of the rules a while ago. I did not call him to order, because this has working · of politics in other States than his own, it ~hould be been rather a fiel2.8. out stint, and .in proportion more in men and in money than Lieut. Col. William Preston Screws, Infantry, from l\1arch any other State. She has been a saving force of this great 20, 1928. Nation many times. She has produced tatesmen. She has Lieut. Col. Frank Luther Case, Cavalry, from March 21, 1928. produced great men and women in liter&ture, in the arts, in the To be lieutenant coZonel.s sciences, in agricultm·e, in commerce, and in education. Indiana is just as essential to-day to the general welfare as ~Iaj. Fulton Quintus Cincinnatus Gardner, Coast ArtillerY she has ever been. With as fine a State park system as there Corps, from March 16, 1928. is on earth, with an unequaled system of State roads all paid :Maj. Robert Charlwood Richardson, jr., Cavalry subject to for, with no bonded indebtedness saddled onto the shoulders of examination require~ by law, from March 20, 192S. future generations, with the State completely out of debt Maj. Francis Webster Honeycutt, Field Artillery from March to-day-one of the few in the Nation-and with more than 21, 1928. ' $13,000,00D in her treasury she stands unrivaled among the To be nwjors Stat~ of the Union, the brightest jewel in the American diadem Capt. Truman Smith, Infantry, from March 16, 1928. of States. Capt. Lester Atchley Sprinkle, Cavalry, from March 20, 1928. So, Mr. President, I shall not attempt any defense of the Capt. Robert Walker Grow, Cavalry, from March 21, 1928. State from which I come. I l:!m perfectly willing to have the To be captains people of my State and of the . corm try judge of the propriety First Lieut. Richard Cox Coupland, Ordnance Department, of the remarks made this afternoon by the Senator from from March 16. 1028. · Maryland. First Lieut. Walter Alfred Elliott Infantry from March 18 EXECUTIVE SESSION 1928. ' ' • Mr. CURTIS. I mo>e that the Senate proceed to the con­ To be first lie·uten-omts sideration of executive business. Second Lieut. Leslie Page Holcomb, Air Corps, from March The motion was agreed to ; and the Senate proceeded to 16, 1928. the consideration of executive business. After five i:ninutes Second Lieut. Frank Hinton Bunnell, Ca>alry, from March spent in executive session the doors were reopened; 18, 1928. FLOOD CONTROL MEDICAL CORPS Mr. JONES, from the Committee on Copllllerce, to which was To be ca1Jtain referred the bill (S. 3740) for the control of floods on the Mis­ ·issippi River from the Head of Passes to Cape Gira·rdeau, :Mo., First Lieut. John Allison Worrell, jr., Medical Corps, from and for other purposes, reported it without amendment and March 15, 1928. submitted a report (No. 619) thereon. PROMOTIONS IN THE NAVY

NATIONAL CONVE~TION OF THE AMERICAN LmiON Lieut. Frederick W. Neilson to be a lieutenant commander in : Mr. SHEPPARD. From the Committee on Military Affairs the l'lavy, from the 16th day of January, 1928. · Lieut. Allen I. Price to be a lieutenant commander in the I report back favorably without amendment the bill (S. 3387) Navy, from the 28th day of February, 1928. to authorize the Secretary of War to lend War Department . The following-named ensigns to be lieutenants (junior grade) equipment for use l).t the tenth national convention of the Ameri- m the Navy, from the 5th day of June, 1927: ~ can Legion, and I submit a report (No. 620) thereon. I ask Francis M. Reddens. unanimous consent for the immediate consideration of the bill. Harold B. Edgar. · There being no objection, the bill was considered as in Com­ Midshipman Walter C. Winn to be an ensign in the Navy, mittee of the Whole, and it was read, as follows: from the 2d day of June, 1927, to correct error in spelling of . Be it en6-cted, etc., That the Secretary of War be, and is hereby, name as ·previously nominated and confu·med. authorized to lend at his discretion to the Tenth National Convention Passed Asst. Dental Surg. Tyler W. Spear to be a dental Bm·eau, American Legion, for use at the tenth national convention of surgeon in the Navy, with the rank of lieutenant commander the. American Legion to be held at San Antonio, Tex., in the month of from the 2d day of Jrme, 1927. ' O.ctober, 1928, 10,000 cots, 20,000 blankets, 20,000 bed sheets, 10,000 Asst. Ci vii Engineer Lewis Thornburg to be a civil engineer pillows, 10,000 pillowcases, 10,000 mattresses or bed sacks, and such in the Navy, with the rank of lieutenant commander, from the field kitchens, tables, eating and cooking utensils and appurtenances 1st day of July, 1926. as may be necessary for use in temporary restaurants: Pt'O"l>ided, That The following;named pay clerks to be chief pay clerks in the no expense shall be caused the United States Government by the deliv­ Navy, to 1·ank with but after ensign, from the 3d day of Decem­ ery aud return of said property, the same to be delivered at such time ber, 1927: prior to the holding of the said convention as may be agreed upon by Frank G. Bither. Raymond J. Kilton. the Secretary of War and the general director of said tenth national Raymond H. Jordan. Rudolph T. Sommers.· convention bureau, the American Legion, Mr. Philip B. Stapp: r-ro1Jided Louis J. Barta. Vans R. Pope. further, That the Secretary or War before delivering said property Geo1·ge F. Wenzler. Horace B. Gould. shall take from said Philip B. Stapp a good and sufficient bond for Carl F. Stuby. George 0. R. Roberson. the safe return of said property in good order and condition and whole Charles· M. Waidner. Jack M. Page. withOut expense to the United States. Ralph E. Mapps. Joseph F. Batzer. The bill was reported to the Senate without amendment, Nathaniel Grauel. Samuel R. :Michael. ordered to be engrossetl for a third reading, reatl the third time, POSTMASTERS and passed. RECESS ARKANSAS Mr. CURTIS. I move that the Senate take a recess until 12 Dalton Matthews to be postmaster at Vilonia, Ark., 1n place o'clock Monday. of J. M. (;arrett, removed. 5308 CON GRESS! ON AL RECORD-SEN" ATE ~fARCH 24 .

• CALIFORNIA MI:.'l"NESOTA Jes~e D. 1\fyers to be postmaster ·at Arlington, Calif., in place Charles G. Carlson to be postmaster at Gibbon. Minn., in of J. D. Myers. Incumbent's commission expired March 7, 1928. place of C. G. Carlson. Incumbent's commission expired March Nettie Fausel to be postmaster at Independence, Calif., in 1, 1928. place of Nettie Fausel. Incmubent's commission expired March George Neumann to be postmaster at Osseo, 1\linn., in place 7, 1928. of George Neumann. Incumbent's commission expired February Belle B. Jenks to be postmaster at Willowbrook, Calif., in 8, 1928. place of B. B. Jenks. Incumbent's commission expired January . Louise S. Lundberg to be postmaster at Taylors Falls, 1\Iinn., 9, 1928. rn place L. K. Gray. Incumbent's commission expired December IDAHO 14, 1925. Ru~s H. Merriman to be postmaster at St. Joe, Idaho, in Ruth Anderson to be postmaster at Lindstrom, Minn., in place place of R. H. Merriman. Incumbent's commission expires of 0. F. Lindstrom, remoyed. 1\!arch 27, 1928. LouL Vinje to be postmaster at Morris, Minn., in place of William Hope, deceased. ILLL'l"OIS MISSISSIPPI William F. Lammers to be postmaster at Buckley, lll., in place of \V. F. Lammers. Incumbent's commission expired James C. Ellis to be postmaster at Bucatunna, Miss., in place January 7, 1928. J. C. Ellis. Incumbent's commission expired March 22. 1928. James \V. Scott to be postmaster at Monmouth, Ill., in place Lee Gray to be postmaster at Corinth, Miss., in place of of J. W. Scott. Incumbent's· commission expired March 12, W. F. Elgin, deceased. 1928. MONTANA INDI.ANA . ~Iargaret B. Wbetstone to ·be postmaster at Cut Bank, Mont., George W: Owen to be postmaster at Poseyville. Ind., in place m place of E. l\1. Davis. Incumbent's commission expired De­ of G. W. Owen. Incumbent's commission expired January 3, cember 19, 1927. 1928. George H. White to be postmaster at Oilmont, Mont. Office IOWA became presidential July 1, 1927. Eugene Owen to be postmaster at Allison, Iowa, in place of NEW JimSElY Eugene Owen. Incumbent's commission expired March 22,--1928. Rosteen H. Jones to be postmaster at Bayhead, N. J., in place George ·w. Goss to be postmaster at Blairstown, Iowa, in of R. H. Jones. Incumbent's commission expired December 19 place of G. W. Goss. Incumbent's commission expires March 1927. , 24, 1928. John W. Barnett to be postmaster at Hillsdale, N. J., in place James T. Bevan to be postmaster at Caseade, Iowa, in place of C. H. K. Riley, removed. of J. T. Bevan. Incumbent's commission eipired l\1arch 22, NEW YORK 1928. Yida 0. Heinold to be postmaster at Cold Brook, N. Y., in Icea B. Wilcox to be postmaster at. Dumont, Iowa, in place of place of V. 0. Heinold. Incumbent·s commission expires l\lat·ch I. B. Wilcox. Incumbent's commission expired March 22, 1928. 27, 1928. . Chester A. Baker to be postmaster at Farley, Iowa, in place Charles A. Sandburg to be postmaster at Jamestown, N. Y., of C. A. Baker. Incumbent's commission expired March 22, in place of C. A. Sandburg. Incumbent's commission expires 1928. March 27, 1928. Roscoe I. Short to be postmaster at Hazelton, Iowa, in place Kate L. Holden to be postmaster at Peru, N. Y., in place of of R. I. Short. Incumbent's commission expired March 22, K L. Holden. Incumbent's commission expired March 11 1928. 1028. , R. ~ George Hughes be postmaster at Shellrork, Iowa, in 1\larr 1\lullins to be postma. ter at Phoenix, N. Y., in place place of G. R. Hughes. Incumbent· ~ commission expires March of C. K. Williams. Incumbent's corumission expires March 27, 24, 1928. 1928. Wynema Bower to be postmaster at State Center, Iowa. in Lorenz D. Brown to be postmaster at Jamaica, N. Y., in place place of Wynema Bower. Incumbent's commission exp~es of Skidmore Pettit, jr., deceased. Marcb 24, 1928. Norman l\1. Misner to be po tmaster at Woodbourne, N. Y., Thompson C. Moffit to be postmaster at Tipton, Iowa, in place in place of Winfield Mcintyre, resigned. of T. C. Moffit. Incumbent's commission expires 1\larch 24, 1928. OHIO KANSAS Henry Kemper to be postmaster at Bellefontaine, Ohio. in Jes ie W. Lloyd to be postmaster at Athol, Kans., in place of place of Henry Kemper. Incumbent's commission expires March S. G. Sommers. Incumbent's commission expired January 22, 27, 1928. 1928. ' Edgar C. Allison to be postmaster at Cumberland, Ohio, in James P. Kelley to be postmaster at White Cloud, Kans., in place of E. C. Allison. Incumbent's commission expired Murch place of J. P. Kelley. Incumbent's commission expired Fe~ru­ 21, 1928. ary 8, 1928. Francis E. CoDk to be po. tma~ter at Galion, Ohio, in place Anna L. Miller to be postmaster at Bushton, Kans., in place of F. E. Cook. Incumbent's collllllission expires March 27 of F. l\1. Bowman, removed. 1928. , Bessie Custer to be postmaster at Satanta, Kans., in place Oliver Ferrell to be postmaster at Paulding, Ohio, in place of R. E. Wright, resigned. of Oliver Ferrell. Incumbent's commission expired February 26, 1928. KESTUCKY George F. Barto to be postmaster at State Soldiers Home Orvil Coleman to be postmaster at Wolfpit, Ky., in place of Ohio, in place of G. F. Barto. Incumbent's commission expire~ Orvil Coleman. Incumbent's commission expired January 17, March 27, 19-28. · 1!>28. Kathan S. Hall to be postmaster at Summerfield, Ohio, in MAINE place of N. S. Hall. Incmni.Jent's commission expired March 21, 1928. Charles C. McLaughlin to be postmaster at Harmony, Me., in place of C. C. McLaughlin. Incumbent's commLsion expires OREGON March 27, 1928. Celia M. Tozier to be postmaster at Rainier, Oreg., in place MASSACHUSETTS of A. L. Clark, deceased. EdYrin C. Howe to be postmaster at Enfield, 1\Iass., in place PENNSYLVANIA of A. B. McDaniels, resigned. Clarence E. Roseberry to be postmaster at Clearfield, Pa., in Henry D. Ainsworth to be postmaster at Grafton, Mass., in place of 0. E. Roseberry. Incumbent's commission expired place of F. 1\.f. Hickey, removed. .January 15, 1928. Charles 1.\L Edwards to be postmaster at Sterling, Mass. Sherwood B. Balliet to be postmaster at Coplay, Pa., in place Office became presidential July 1, 1927. of S. B. Balliet. Incumbent's commission expires March 24, 1928. MICHIGAN Luther J. Lukehart to be postmaster at Du Bois, Pa"':, in place Albert S. Stieg to be postmaster at T~mperance, 1\Iich., in of L. J. Lukehart. Incumbent'§ commiss.ion expired Jauuary place of E. J. Richardson, deceased. 16, 1028. "1928 CONGRESSIONAL RECORD-HOUSE 5309 William D. Heilig to be postmaster at Stroudsburg, Pa., in the gentleman from Kentucky (Mr. GILBERT] may be permitted place of W. D. Heilig. Incumbent's commission expires March to address the House for one hour. Is there objection? ·24, 1928. Mr. BEGG. Mr. Speaker, reserving the right to object, I SOU'l'H CAROLINA would like to ask the gentleman if he took this up with the ·James D. Mackintosh to be postmaster at McClellanville, chairman of the Rivers and Harbors Committee, which com­ S. C~ in place of J. D. Mackintosh. Incumbent's commission mittee has the call on Calendar Wednesday? It does not seem expired March 18, 1928. to me when we have Calendar Wednesday so rarely we ought TEN:l\~SEE to cut in on that day without at least the permission of the chairman of the committee having the call. John B. Waters to be postmaster at Sevierville, Tenn., in Mr. OLDFIELD. I took the matter up with the gentleman place of J. B. Waters. Incumbent's commission expired Janu­ from Connecticut [Mr. TILsoN] and he suggested this would be ary 17, 1928. a good day. TEX.AS Mr. TILSON. Mr. Speaker, some of the committees that are John A. McFarland to be postmaster at Ladonia, Tex., in now being called on Calendar Wednesday have not enough bills place of J. A. McFarland. Incumbent's commission expired to take up an entire day. We ha>e been caught in this way December 19, 1927. - two or three times heretofore. Llewellyn R. Atkins to be postmaster at New Boston, Tex., Mr. BEGG. Then why not let the gentleman talk after in place of L. R. Atldns. Incumbent's commission expired Calendar Wednesday business is out of the way? March 17, 1928. Mr. TILSON. As we are going now we ha>e about as much Jo ie I. Coleman to be postmaster at Tehuacana, Tex., in to do on one day as another, and it would not make any real place of J. I. Coleman. Incumbent's commission expired De­ difference on which day we hear the gentleman. cember 19, 1927. Mr. OLDFillLD. Either Tuesday, Wednesday, or Thursday VERMONT would be satisfactory to the gentleman from Ke11tucky. The Isabel Neary to be postmaster at Shelburne, Vt., in place of gentleman wants to speak on his travels in th.e Philippines, Catherine Neary, deceased. China, and Japan. VIRGINIA 1\Ir. TILSON. ..\.t this time in the session we are very apt to have special rules for business on Tuesdays and Th m·sdays, William R. Sparks to be postmaster at Clinchco, Va., in Eo I should regret having too much of the time on those days place of W. R. Sparks. 'Incumbent's commission expired May taken up with what amounts to general debate. We have 20, 1926. already a special order for one hour on Tuesday under an order Hattie C. Barrow to be postmaster at Dinwiddie, Va., in entered some time ago. So far as I can see now, Calendar ]>lace of P. H. Richm·dson. Incumbent's commission expired Wednesday would be just as satisfactory as any other day, February 8, 1928. and I have no objection. The SPEAKER. Is there objection to the request of the COJ\TFIRMATIONS gentleman from Arkansas? Ezecutive nominations confirmed by thAJ Senate March ~4. 1928 There was no objection. CoLLECTOR OF CUSTOMS MESCALERO RESERV.ATION, N. MEX. Carey D. Ferguson to be collector of customs for District Mr. LEAVITT. Mr. Speaker, I ask unanimous consent to. No. 38, Detroit, Mich. take from the Speaker's table the bill (S. 3007) to authorize POSTMASTERS the Secretary of the Interior to issue a patent to the Bureau of DELA.W.ABE Catholic Indian Missions for a certain tract of land on the William R. Risler, LincolrL Mescalero Reservation, N. Mex., and pass the same. This bill is identical with the bill (H. R. 10475) introduced by the gen­ NEW JERSEY tleman from New Mexico [Mr. MoRRow] and unanimously re­ Fred F. Dennis, Fair Haven. ported by the Committee on Indian Affairs. Jacob D. Roe, Newton. The SPEAKER. The gentleman from Montana asks unani­ Mabel E. Tomlin, Sewell. mous consent for the present consideration of the bill S. 3007, James H. Masker, Somerville. which the Olerk will report. The Clerk read t}le title of the bill. The SPEAKER. Is there objection to the present considera- HOUSE OF REPRESENTATIVES tion of the bill? There was no objection. SATURDAY, March 934, 19~8 The Clerk read the bill, as follows : The Hou ~ e met at 12 o'clock noon. Bo it enacted, eto., That the Secretary of the Interior be, and be is The Chaplain, Rev. James Shera Montgomery, D. D., offered hereby, authorized to issue to the Bureau of Catholic Indian Missions the following prayer : a patent in fee for the unsurveyed tract of land of approximately 10 aeres, now occupied and improved by the St. Joseph Mission on the 0 Spirit of God, which once moved on the face of the waters, Mescalero Indian Reservation in New Mexico, formally reserved. for the when order emerged from chaos, let us feel Thy rapture as we said mission by order of the Secretary of the Interior dated June 25, give .oursel>es up to Thy gentle guidance. The supremacy of 1912: Provided, That before such patent is issued the said corporation Thy Holy Spirit is the inherent birthright of every man. Thy shall deposit with the Commissioner of Indian Affairs whatever amount law, 0 God, makes a challenge, and we beseech Thee to make of money may be required to pay the expenses of a survey to be made every day a solemn resolution which shall pay the homage that under the supervision of the General Land Office. we owe to truth. By wise, unyielding devotion to the public weal, we shall crown the majesty of law, the greatness of our The bill was ordered to be read a third time, was read the traditions, and the glory of the Republic. But infinitely more, third time, and pas~ed. may we exalt Thee in the moral terms of life and by our ac­ A motion to reconsider was laid on the table. c-eptance of Thy claims to our personal affection. Thy mercy A similar House bill was laid on the table. bas spared us, Thy bounty has blest us, and may Thy grace C.ANCELT..ATION OF BALA.J.~CE DUE FROM THE SALE OF C.ATTLE TO elevate us! Oh, we lift our drooping heads and forget our CERTAL''i ROSEBUD INDIANS sins and our fears, because Thou art all glorious and King above all. Amen. Mr. LEAVITT. Mr. Speaker, I ask unanimous consent to take from the Speaker's table and pass the bHl ( S. 3355) to The Journal of the proceedings of yesterday was read and ap­ authorize the cancellation of the balance due on a reimbursable proved. agreement for the sale of cattle to certain Rosebud Indians, PERMISSION TO ADDRESS THE HOUSE which is identical with the bill H. R. 11582, unanimously re­ Mr. OLDFIELD. Mr. Speaker, I ask unanimous consent ported by the Committee on Indian Affairs. that the gentleman from Kentucky [Mr. GILBERT] may be The SPEAKER. The gentlem.an from Montana asks unani­ given one hour in which to address the House on next Wednes­ mous consent for the present consideration of the bill S. 3355, day immediately after the reading of the Journal and the which the Clerk will report. disposition of matters on the Speaker's table. The Clerk read the title of the bill. The SPEAKER: The gentleman from Arkansas asks unani­ The SPEAKER. Is there objection to the present considera­ mous consent that on next Wednesdny after the reading of the tion of the bill? Journal and the disposition of matters on the Speaker's table, There was no objection. /