'1942 CONGRESSIONAL RECORD-SENATE 945 Mr. COFFEE of Washington: Committee on MEMORIALS Claims. H. R . 5500. A bill for the relief of SENATE the estate of Charles L. Clark; with amend­ Under clause 3 of rule XXII, me­ m~=mt (Rept. No. 1725) . ReferrPd to the Com­ morials were presented and referred as TUESDAY, FEBRUARY 3, 1942 mittee of' the Whole House. follows: Mr. SAUTHOFF: Committee on Claims. (Legislative day ot Monday, February 2, . By the SPEAKER: Memorial of the Legis­ 1942) . H. R. 5619. A bill for the relief of certain lature of the State of California, memorializ­ clerks in the post office at Detroit, Mich; ing the Preside;nt and the Congress of the without amendment (Rept. No. 1726). · Re­ United States rela_tive to the old-age security The Senate met at 12 o'clock meridian, ferred to the Committee of the Whole House. law; to the Committee on Ways and Means. on the expiration of the recess. Mr. JENNINGS: Committee on Claims. The Chaplain., the Very Reverend H. R. 5686. A bill for the. relief of Lewis J. Z!';Barney T. Phillips, D. D., offered the and Mary Black; with amendment (Rept. No. 1727). Referred to the Committee of the PRIVATE BILLS AND RESOLUTIONS following prayer: Whole House . Under clause 1 of rule XXII, private 0 Thou, who art the same yesterday, Mr. CHENOWETH: Committee on Claims. today, and forever, . who art· both our H. R. 5794. A bill for the relief of Mrs. Julia bills and resolutions were introduced and severally referred as follows: · present dwelling-place and the distant Johnson; with amendment (Rept. No. 1728). city of our . habitation, who tqinkest in Referred to the Committee of the Whole . By Mr. BRADLEY of Pennsylvania: House. H. R. 6518. A bill for the relief of Benjamin us, though ofttimes unsought, beautiful. Mr. KEOGH: Committee on Claims. H. R. Frankl1n; to the Committee on Naval Affairs. thoughts creating a divine surprise: We 5845. A bill for the relief, of Alvira Manfredi; By Mr. MANSFIELD: humbly ask that Thou wouldst now di-. with amendment (Rept. No. 1729). Referred H. R. 6519. A bill for the relief of Jesse M. rect our thinking out of unworthy medi­ to the Committee of the Whole Hon&e. Knowles; to the Committee on Claims. tation into the realm where h:gh and Mr. HARRIS of Arkansas: Committee on By Mr. McGREGOR: holy purpose dwells. . Claims. H. R. 5977. A bill for the relief of · H. R. 6520. A bill for the relief of Jane A. If our thoughts prove barren and un-· Mr. and MrF F .. Wilder Temple; with amend­ Thornton; to the ·committee on Claims. ment (Rept. No. 1730). Referred to the Com;. fruitful, open Thou the windows of our· mittee of the Whole House. · mind for' the entry of 'those cleansing arid Mr. KLEIN: Committee on Claims. H. R. PETITIONS, ETC. reviving airs that shall touch them with' 6063. A bill for the r.elief of the Clark Cot\IltY · some kindling breath of holy aspfration.: J umber Co.; with amendment· (Rept. No. Under clause .1 of rule XXII, petitions . Graht that the words which we utter. 1731). · Referred to the . Coumittee of the and papers were laid on the Clerk's desk here, and elsewhere, may· be' words that' Whole House. · and referred as .follows: breathe the spirit of the Master and may. 2355. By' Mr: ENGEL: Resolution of the con£iriue to be heard so long as the spirit PUBLIC BILLS AND RESOLUTIONS United Council of Veterans' Organizations of gf the human race feels the need of com-. Muskegon County, Mich., by its adjutant, panionship along the upward way. In .- -U~der clause 3 . of rUle nn, public Earle J. Hewitt', protesting against the ~p­ our dear .Redeemer's Name, we ask it.: -bills and resolutions were introduced and pointment of bean Landis as.dfrector of - na~ Amen. ·· severally referred as ~allows: .tiona! civilian ·defense; also the -ce.uncil urges By Mr. H. CARL ANDERSEN: .. that someone be named in his place who is THE JOURNAL H. R. 6512. A bill to .provide protection- to known to be 100-percent American; -to the Committee on Military Mairs. On request of Mr. BARKLEY, and by all persons in the active military or naval unanimous consent, the reading of the forces of the United States in the nature of :;!356. By Mr. FITZPATRICK: Memorial of the Legislature of the State of New York, re­ Journal or' the· proceedin-gs of the cal­ group · insurance by issuance of a policy of endar. day Monday, February 2, 1942, w-as National Service Life Insurance in the spectfully requesting the President of · the amount of $5,000, premiums to be paid by United States imd all r~sponsible Federal dispensed with, arid the Journal was ap...,_ the Government during active war service, officials to give careful consideration to the proved. manifold qualifications which make the city and for other purposes; to the Committee on MESSAGE FROM THE HOUSE Ways and Means. and State of New York a desirable place for the relocation of Federal Government agen­ A message from the House . of Repre­ 13y Mr. SMITH of Ohio: cies removed from Washington, D. C., and to . H. R. 6513. A bill to amend further the sentatives, by Mr. Swanson, one of its make such selection 'wherever appropriate clerks, announced that the House had· Civil Service Retirement Act of May 29, 1930; and possible; to the Committee on Public to the Committee on the Civil Service. Buildings and Grounds. passed without amendment the following _ By Mr. VINSON of Georgia: · 2357. By Mr. LUTHER A. JOHNSON: Pe'ti­ bills of the Senate: H. R. 6514. A bill'to provide for the inspec­ tion of Mrs. A. C. Schandies and 15 other S. 294. An act· to authorize an appropriation tio.n of books, records, and other writings of .citizens of Rosebud, Tex., opposing the manu­ for payment to the Middle Rio Grande Con-· contractors in certain cases; to the Commit.:: facture and sale of alcoholic beverages dur­ servancy District of construction costs as-. tee on Naval Affairs. ing the period of the war; to the Committee sessed ·against certain lands within such dis­ By Mr. O'CONNOR: on the Judiciary . trict acquired by the United · States for the .H. R. 6515. A bill providing for t.):le suspen­ 2358. By Mr. KEOGH: Petition of the Mid­ benefit of certain. Indians in the State of sion of annual assessment work on minmg town Civic League of Brooklyn, N. Y., con­ New M:;xico; claims held by location in the United States; cerning universal fingerprinting; to the S. 828. An act to increase 'the period for to the Committee on Mines and Mining. Committee on the Judiciary. which· leases may be made of public lands· By Mr. FORAND: 2359. By Mrs. NORTON: Petition of the granted to the State of Idaho for educational' H. R. 6516. A bill to extend the provisions Legislature of the State of New Jersey, me­ purposes by the act of July 3, 1890; of the District of Columbia Rent Act to pri­ morializing the Congress of the United States S.1045. An act to increase the earnings of vate garages and spaces in public garages; to to ·refuse to enact any_ legislation whi.ch the United States Government Life Insurance the Committee on the District of Columbia. would destroy th.e rights of the State of New fund and the National Service Life Insurance By Mr. RANKIN of Mississippi: Jersey in its administration of the State un­ fund by expediting the inve.stment of the H. R. 6517. A bill to provide for iil vestiga­ -employment compensation system; to the moneys thereof, and for other purpos~s; tions by the Bureau of Mines to determine Committee on Ways and Means. S. 1412. An a-ct to amend the act of June the availability of certain low-grade bauxite 2360. By Mr., ROLPH: Resolu1;ion of the 11, 1940 (Public, No. 590, 76th Cong., 3d sess.) ,· for production of alumina; to the Committee Board of Supervisors-of the City and County providing for the relizf of Indians who have. ·on .Mines and Mining. .of San Francisco-, memor;tlizing Cong:res~ to paid taxes on allotted land; . By Mr. BLOOM: immediately insure complete protection for S. 1889. ~An act authorizing the Adminis- J H. J. Res. 276. Joint resolution to' author­ the- Pacific coast, Resolution. No. 2383 (series trator of Veterans' Affairs to grant an ease­ ize the President ·of the United States to of 1939); to the Committee · on Military ment for highway purposes to the county of. render financial aid to China, and for other Affairs. Macon, Ala., in a strip of land located at purposes; to the Committee on Foreign Af­ 2361. By the SPEAKER: P~tition of the Veterans' Administration facility, Tuskegee. fai~·s. commander in chief, United Spanish war Ala.; By Mr. COX: Veterans, petitioning consideration. of their S. 2012. An act ·authorizing the Adminis­ H. Res. 426. Resolution. authorizing an in­ resolution with . reference to additional ap­ trator of Veterans' Affairs to grant an ease-: vestigation of the organization, personnel, propriations for Spanish-American War vet­ ment in certain lands of the Veterans' Ad­ and activities of the Federal Communications erans, their widows, or dependents; to the ministration facility, Togus, Maine, to the· Commission; to the Committee on Rules. Committee on Pensions. State of Maine for road-widening purposes; LXXXVIII-60 946 CONGRESSIONAL-RECORD-SENATE FEBRUARY 3 S. 2080. An act authorizing the Adminis­ Mr. AUSTIN. The Senator from New appropriate disposition certain petitions trator of Veterans' Affairs to grant an ease­ Hampshire [Mr. BRIDGES] is absent in'. a which have been sent to me by Repeal ment in certain lands of the Veterans' Ad-· hospital because of a hip injury. Associates. I ask that one· of the peti­ ministration facility, Murfreesboro, Tenn., to Rutherford County, Tenn., for highway pur­ The Senator from New Jersey [l\4r .. tions may be printed in the RECORD with­ poses; and BARBOUR] is absent on official business. out the names attached, and that the S. 2217. An act to authorize the attendance The Senator from Pennsylvania [Mr. petitions ll}aY lie·on · the table. of personnel of the Army of the United Sta~es DAVIS] is absent on business 'Of the There being no objection, the petitions as students at educational institutions and Senate. were ordered to lie on the table, and one other places. The Senator from Massachusetts [Mr. of the petitions was ordered to be printed LODGE] is necessarily absent.· in the RECORD without the names at­ The message also announced that the tached, as follows: House had passed the following bills, in The VICE PRESIDENT. Eighty-six Senators have answered to their names. To the Congress of. the United States: which it requested the concurrence of A quorum is· present. Whereas certain bills (notably S. 860 and the Senate: · H. R. 4000) have been introduced into Con­ OVERTIME PAY· FOR CERTAIN EMPLOYEES gress, "To provide for the common defense in H. R. 4321. An act for the benefit of the OF NATIONAL ADVISORY COMMITTEE Ch ~ ppewa Indians of Minnesota; relation to the sale of alcoholic liquors to FOR AERONAUTICS members of the land and naval forces of the H . R. 4812. An act further to define the United States and to provide for the sup­ powers of district judge in certain suits; The VICE PRESIDENT laid before the a pression of vice in the vicinity of military H. R. 6005. An act to authorize cases under Senate the amendment of the House of camps and naval establishments"; and the Expediting Act of February 11, 1903, to Representatives to the bill ar~ H. R. 6291. An .act to amend the Merchant unemployed at a result of the effect of the have printed in the , RECORD an art!cle· from Marine Act, 1936.- as amended, to proyide for the New Republic of January 26, 1942, en• war upon employment conditions to be ap- , the coordination of the forwarding and si~­ pointed to positions in the clas,sified civil titled "The G. 0. P.'s Sacond Childhood ,~ Har servicing of water-borne export and im-: · and a list of writings of Clarence Budington service upon passing noncompetitive. e~ami­ port foreign commerce of the United States; Kellabd, which appe·ar in the Appendix.] ' nations; to the Committee on Civil Service. to the Committee on Commerce. Mr. BYRD (for -himself, Mr. BAILEY, Mr. H. R. 6232. An act to revise the boundaries WOODR.OW WiLSON'S IDEALISM IN THE -BURTON , and Mr. JoHNSON. of Colorado) in­ of the -Chickamauga-Chattanooga National POST-WAR PERIOD-ESSAY BY JOSEPH troduced Sanate bill 2242, which was referr€d _Military Park in the States of Georgia an~ . CARUSO . . to the Committee on Civil Service and ap­ Tennessee; to the Committee on Public Lands pears under a separate heading. and Surveys. · [Mr: SMATHERS asked and obtained leave By Mr. BAILEY: . to have printed in the RECORD an essay by S. J. Res. 130. Joint resolution to extend an(! STUDY OF ADMINISTRATION OF THE Joseph Caruso, a student in the Woodrow amend certain emergency'laws relating to the DEFENSE · PROGRAM Wilson High School, r than or on which it is possible to reach into a the battle to which the United States is Guam, and they did not deter the Japa­ hat and pull out. a rabbit at once as a now committed. Therefore, I hope that nese. remedy for it. from the outside, and especially from Mr. BARKLEY. That is a theory I realize that during war we have to irresponsible sources, those who enjoy about which I have no more informa­ resort to a great many devices which the patronage of the public, and who tion than has anyone else. But I desire would not be justified· in times of peace either have their voices heard over the to get back to the purpose for which I in order to ascertain what the enemy is radio or have what they write read in rose. seeking to do, and to prevent him fr-om newspapers, will keep that fact in mind. Mr. WALSH. I am sorry I diverted ascertaining what we are seeking to do. It is more important, as I judge it, that the Senator. It is true, as we all know, that Members the Congress of the United States and Mr. BARKLEY. I diverted myself. of the Senate disagreed honestly and vig­ the American people should be march­ Mr. WALSH. If the Senator will per­ orously with respect to the foreign policy ing toget:Per, shoulder to . shoulder, as mit me further, I should like to say that of the United States until the 7th of one man, without regard to previous dif­ the fortification of Guam as an outpost, December, when we were attacked by ferences, than it is for somebody to write although it would have been lost in a Japan. Since the 7th of December I something or to speak something that naval attack, would undoubtedly have think I can state, and I think I am in a he wants somebody to hear or to read. delayed the attack made by the Japanese position to state, that regardless of any I would caution Senators also, if I at Pearl Harbor and our own coast. If views entertained by anybody prior to may do so without offense, not to take -Guam had been fortified, and we had a that time, every Member of the Senate too seriously the little pin pricks which strong naval base there, the enemy in a responsible position, either as a we sometimes feel. The American would not go beyond it until Guam was member of a committee or as a Member people at heart are sound: I have often wiped out. of the Senate or as chairman of any said that we hear noises and we see Mr. TYDINGS. ·Mr. President, will committee dealing with war legislation, things here that disturb us and irritate the Senator yield? has cooperated completely and fully and us . and annoy us and sometimes anger Mr. BARKLEY. I yield. promptly. us; but when we get back among the Mr. TYDINGS. I should like to say It has fallen to iny lot to have some­ people, we find that they are sound and that I think it unfair to leave the im­ thing to do with war legislation even in­ solid, and they will stand behind the pression that if Guam had been fully sofar as suggesting to what committees efforts of Congress and the Govero.ment fortified, probably the attack on Pearl bill should go. In that capacity the to carry forward the battle in whi-ch we Harbor would have taken place just the Senator from Montana [Mr. WHEELER], are engaged. · same. I do not believe that to be true. as chairman of the Committee on Inter­ I felt that I ought to say that, because If we had at that outlying base, 2,500 state Commerce, to which have been re­ it i.s true of every .Member of the Senate, miles away, fully fortified where the ferred two or perhaps three important regardless of his - attitude prior to our Navy could have kept at least a scouting war measures, has taken charge and in entry into the war, regardless of his fleet and some small number. of vessels, two cases has himself introduced the position on a committee, whether a it would have seriously interfered with bills, was glad to do it, has promptly got chairman or a .4umble member. · Japanese strategy for a surprise attack them out of the committee, and they have Getting back now to wire tapping; we on Pearl Harbor, and had it been fully passed the Senate of the United States. probably shall have, in the very near fu­ fortified-which I do not blame anybody Chairmen of other committees who · did ture, legislation of that sort. I under­ for not having accomplished-I believe not· altogether agree with the foreign stand that the House Committee on the that the Japs would have had a great policy of this country prior to December Judiciary is now considering a bill regu­ deal of difficulty in getting by it, because 7 have taken charge of and have intra- · lating in some way wire tapping. If that they would. have had to go back by it duced measures necessary to carry on the bill passes the House, it will come here. again. war, and they have done it promptly and The Committee on Interstate Commerce I should Uke to leave the thought, i.n efficiently, without regard to any view is the committee which has always han­ conclusion, that so long in the future as they entertained prior to the 7th of De­ dled that kind of legislation ever since it there is no limitation on armaments on cember and our declaration of war. has been considered in the Senate. While land, in the air, and on the sea, we I think we have here in the Senate I have nothing to say about where a hill ought to learn the lesson from Guam, as complete a unity of purpose as can shall go if it comes from another body, I that whatever possessions we have, we possibly exist in any legislative body think due consideration ought to be given ought to put in a military position to representing such various and widely to the fact that that committee has defend themselves·, unless there is a limi­ scattered interests as we have in the already been dealing with the subject, has tation of armaments. "What Curzon United States. It is desirable that that held exhaustive hearings· on the subject, has, let Curzon hold," is a good slogan unity and that harmony and that one­ now has in existence a subcommittee on for the United States. ness of purpose shall be maintained un­ the subject of wire tapping, and I think · Mr. BARKLEY. Mr. President, I ap­ til the war is over and we have won it. it is competent and able to handle the preciate this discussion about Pearl Har­ Therefore, ·I desire to say publicly-and subject promptly, and that it will do 'so bor and Guam, which is really beside I am not ashamed or afraid to say it­ according to its responsibility if legisla­ the question I rose to discuss, which was that, without regard to any Senator's tion of this nature is referred to it. to comment on the remarks of the Sen­ position on our foreign policy prior to Mr. WALSH. Mr. President, amplify­ ator from Missouri [Mr. TRUMAN] in re­ our entry into the war, all of them have ing briefly what has been said by the gard to wire tapping, and certain cooperated and are now cooperating, distinguished Senator from Kentucky, charges with which I am not familiar, and I have no doubt will continue to co­ the Democratic leader, I think it ought ·which he mentioned, involving the Sen­ operate, in the enactment of whatever to be said that there were high-ranking ator from Montana [Mr. WHEELERJ. legislation is necessary to win the war, naval officers a·nd high-ranking officers I am a member of the Committee on and win it as promptly and as effectively of the Army who did not agree in full Interstate Commerce, and I happen to as possible, and put us in a position . to and completely With the foreign policy know that that committee for some time have a determining voice in the kind of of the administration before the war be­ has been considering legislation on the peace we are to have when the war shall gan. There certainly were millions of subject of wire tapping. The Senator end. young men who are now in the service from Tennessee [Mr. STEWART] was I have no doubt that Senators who of our country, and their fathers and chairman of a very active subcommittee did not agree with the foreign policy of mothers, who did not agree in toto with which went into that question. The this Government prior to December 7 the foreign policy of our country. They matter of wire tapp_ing, of course, in­ will be called upon, in the days and did not have the obligation which Sen­ volves a good many delicate things. I weeks and months to come, as members ators have to vote when the roll was think the Senator from Tennessee was of committees and as chairmen of com­ called, and to be publicly put on record· as the diligent chairman of a subcommittee mittees, to cooperate and labor with all to their position, and to explain to their on as difficult a subject as I have seen the rest of us who do agree with the constituents their views J:ro and con. 1942 CONGRES-SIONAL RE-CORD-SENATE 955 How can anyone now question the pa­ which is owned or controlled, directly or in­ sidiary corporations, powers which have triotic service of all these millions of directly, .by the Government is hereby author­ heretofore been granted to other agen­ ized, notwithstanding any other. provision of Americans? It is just as much of an in­ law, to sell, transfer, or lease, with or without cies of the Government, through the sinuation against these Army and Navy consideration, to the Corporation or to any war ·power acts and otherwise, including men and these young men who are now corporation created or organized pursuant to the right of condemnation. out fighting for their country to suggest section 5d of this act, any real estate and any This is desired by the Reconstruction that they are not wholeheartedly in right or interest therein. Finance Corporation particularly, and favor of carrying on this war to the end "SEc. 5g. Tlie Reconstruction Finance Cor­ I think entirely, to enable it, without and to the limit, whatever sacrifice may poration is hereby directed to continue to delay, to acquire lands to be used solely be involved, as it is to suggest that any supply funds to the War Damage Corporation, in the defense program, the acquisition a corporation created pursuant to sectlon 5d Member of this body, because he differs of this act; and the amou-nt of notes, bonds, of sites for def~nse plants, and probably with the foreign policy of the adminis­ debentures, and other such obligations which the acquisition of lands owned by mu'- . tration, is now hesitating or doubtful the Reconstruction Finance. Corporation is nicipal or other public agencies . which . or resisting in any way, shape,-or form authorized to issue and to have· outstanding . might be needed in connection with a . the importance and necessity of all, at any one time under existing law is hereby­ defense-plant program. Because thisi standing together and fighting together increased by an amount sufficient to carry out · particular part of the amendment has and dying together if necessary to the the provisions of this subsection. Such funds : been d ~ scussed in connection -with other;· end that we may bring, as speedily as shall be supplied only upon -the request of. the legislation, soine of it ·very recent, the ­ · Federal Loan Administrator, with the ap­ possible, victory to our country. · proval of the President, · and the aggregate . Members ·of Congress ·are. familiar with _. EXTENSION OF POWERS· OF RECONSTRUC-· amount of the funds so supplied shall not ex­ the· provision, and I" shall not long dwell TION FINANCE CORPORATION ceed $1,000,000,000. - The Reconstruc~ion Fi-. upon i~ · nance Corporation is authorized to and shall Another - change which would· be The Senate resumed the consideration empower the War Damage Gotporation to use brought ab::mt by the amendment, if i.t of the bill Vernment cor­ sets of the United States Government? Reconstruction Finance Corporation or porations in the direct debt. . Mr. MALONEY. Tha~ is my under­ no Reconstruction Flnance Corporation, Mr. TAFT. Mr. President, I read the standing. we are going to raise the debt limit in a statement with care, and I understood Mr. VANDENBERG. I think that is short time? it to say what I have stated. Some of true, and I think that should be said in Mr. VANDENBERG. No; but I say these corporations have notes outstand­ fairness. The only point I am making that we should have everything above the ing which will take a long time to ma­ is that we constantly delude ourselves bY table from now on. tu:·e, and they will not be incorporated our public-debt figures, because so much Mr. MALONEY. Mr. President, I in the general debt statement until they of our national obligation is outside of should like to say in answer to the in­ mature and are replaced by new Govern­ the public-debt figures. quiry of the Senator from Ohio [Mr. ment obligations, but that policy was Mr. PEPPE.R. I am glad the Senator TAFT], so that I may not be misunder­ laid down by the Treasury in very clear made that statement, and I think it is stood, that that is what now appears terms. a fair comment. I have often felt that to be in mind. Mr. BYRD. ·The Senator understands we frequently delude or mislead ourselves Mr. TAFT. But there are some out­ that any new loans which are made by also in speaking generally of the public standing Reconstruction Finance Cor­ the Reconstruction Finance Corporation debt without speaking of the assets we poration notes which do not appear in and these various other Government or­ have. For example, a great dam, or the Treasury statement. · ganiz2.tions, will be included in the regu­ <>ther great public improvement, will ap­ . Mr. MALONEY. Yes. lar public-debt statement? pear in the public-debt statement, but Mr. TAFT. As those mature they will Mr. TAFT. They will be included in there is no credit side of the ledger on be taken over and added to the public the public-debt statement. which the improvements appear. In the debt, but there are still today a number Mr. BYRD. And will be included in interest of sensible bookkeeping, I im­ of Reconstruction Finance Corporation the total of the public dEbt? agine all of us agree that it would be notes that have not been added into the Mr. TAFT. They will be included in better if in some way or other the public public debt. the total of the public debt. improvements could be set up on an as­ Mr. MALONEY. Yes; I so understand, Mr. BYRD. I hope the Senator is to the extent of two and one-half billion correct, but I do not think he is. sets side, so as to show what we have dollars. done as well as what we have spent. Mr. TAFT. Not only will they be in­ Mr. BYRD. Are the debts incurred by cluded, but they will be Treasury obliga­ Mr. VANDENBERG. The difference the Reconstruction Finance Corporation tions instead of being guaranteed obli­ between the two situations is that we to be included in the direct public debt? gations, so they will have to be included. have a statutory debt limitation. We are Mr. TAFT. I understand the policy of Mr. MALONEY. Mr. President, with not supposed to go beyond the statutory the Treasury hereafter will be to do all that explanation of this section of the debt limitation, but we have found a very the borrowing itself, and then turn bill, I should like to come to a discussion convenient way of going beyond the stat­ around and lend the money to·the Recon­ of what I think is the heart of this par­ utory limitation any time we wish to do struction Finance Corporation, and take ticular measure, and which is provoked so, namely, by creating a corporation and the Reconstruction Finance Corporation by the hazards of war. letting it go beyond the debt limitation, notes into the Treasury, and also those Mr. President, I may say, without the Government guaranteeing its obli­ of other Government agencies. That apology, but rather with pride, that I gations. While offsetting assets certainly policy was announced by the S2cretary am attempting to present this bill to the shou~d be considered by way of mitiga­ of the Treasury. It will take a long time Senate on behalf of the able and dis­ tion, I think that if we are to be candid to do it, because many of these notes have tingu;shed Senator from New York [Mr. with ourselves and with the American not matured, and they will not be incor­ WAGNER] who introduced the bJl. I have people from now on in respect to a public porated in the general debt statement not asked him about it, but I presume debt which is going to become astro­ until they mature. the bill was introduced at the request of nomical, we should start in the direction Mr. BYRD. Does the Senator under­ the Reconstruction F .i. nance Corpora­ ·of utterly candid bookkeeping, and the stand that the same policy will apply to tion. ·present bookkeeping certainly is not the other twenty-odd Government cor­ Mr. WAGNER. Yes; it was. that. porations? Mr. MALONEY. Consequently I do not Mr. MALONEY. It was partially be­ Mr. TAFT. Yes; that is my U:lder­ knGw so much as I should Eke to know cause I had that thought in mind that standing. Their obligations will be in­ about what has gone on heretofore with I wanted this statement of the Recon­ corporated in the general debt statement respect to this very serious and now im­ struction F~ nance Corporation printed in when they mature. It may take 20 years portant subject of war-damage protec­ the RECORD with my statement. for some of the notes to mature, but tion. I do know that it is a subject Mr. TAFT. Mr. President, Will the when they do, they will be included in which had a long-time study in Great Senator yield? the direct debt. That statement was Britain; that it has been under study cr Mr. MALONEY. I yield. made by the Secretary of the Treasury. in operation there for approximately 4 Mr. TAFT. It is my understanding Mr. BYRD. Is that the understand­ years. The bill, if passed in anything that the Treasury has announced a new ing of the Senator from Connecticut? like its present form, w.ill provide broad policy, namely, that hereafter it will bor­ Mr. MALONEY. It is my understand­ powers to the Federal Loan Administra­ row the money, and the borrowings' will ing that all the future borrowings of the tor, the S~cretary of Commerce, Mr. appear as part of the public debt; it will subsidiary corporations and of the Re­ Jones. It was not possible for us in the then buy from the R. F. C. the R. F. C.'s construction Finance Corporation must little time we thought we had, to work notes, which will then appear as an asset be included in the United States Treas­ out a program. It seemed wise-and I to the Treasury. I am not certain, but is ury statement. may say at this point that the bill had it not the Senator's impression that that Mr. BYRD. Will they be included in the unanimous approval of the Commit­ is the new policy of the Treasury, that the direct debt? tee on Banking and Currency-to dele­ gradually the R. F. C. debt will appear as Mr. MALONEY. I have some doubt gate the powers urider the bill to the part of the public debt? about it, and because I do not know I Federal Loan Administrator, but only 958 CONGRESSIONAL RECORD-SENATE FEBRUARY 3 because, I may add, Mr. President, or other services which are necessary in the Mr. MALONEY. That is not exactly rather in part because, we had the volun­ field of insurance.· This particular indi­ the case as of this moment. Sometime tary assurance of Mr. Jones that he in­ vidual said that he felt that to a very ago, by regulation or order, a blanket pol­ tended to return to Congress at some lit­ great extent, supported by the Federal icy was-issued covering all the property in tle · later time, to set forth such plans, Government and the taxes of the Ameri­ the United States to a reasonable extent. or to explain to the Committee on Bank­ can people, the insurance c Jmpanies, No amount was specified. That blanket, ing and Currency, or another commit­ with years of experience in the insurance mythical, intangible policy-which, para­ tee, the status and progress of this plan. field, and considerable experience in this doxically, is real because it has the back­ None of us can be certain that insofar as field, could render a great service. Per­ ing of the United States-is in existence the continental United States is con­ sonally, I think that is true. at this hour, and as I understand will be cerned, we will ever pay a claim under The coverage provided under the in existence until this bill or one like it this bill, if it shall be passed. We believe blanket policy, which may go up to becomes a law. After that, should we that under this bill or some other bill, $15,000 per property owner or individual, pass this bill, there would be no insur­ as the result of the disaster at Pearl Har­ would be a blanket policy. So far as we ance in effect beyond $15,000 unless and bor, and the temporary loss of a part of can now see there would be no written until provision were made for the pay­ the Philippine Islands to the enemy, there contract. The policy would cover all ment of premiums, and I assume the will at some later time need to be an ad­ tangible property of Americans in the writing of a protection policy for those justment of war-damage losses. United States which might be damaged as who want insurance in an amount in ex­ The committee felt...:_and I doubt if a result of bombing or the direct hazards cess of $15,000. this is mentioned in the report, and it is and effects of war caused by enemy at­ Mr. VANDENBERG. Such a policy for that reason I now mention it-1 tacks. The committee went a step be­ would be in a specific amount, with a think the committee unanimously felt yond that. It made provision in the lan­ specific obligation? that there should be no effort at this guage of the bill for the War Damage Mr. MALONEY. That is our under­ time, or until there is a change in the Corporation to afford protection to the standing. . situation, to adjust losses in locations cargoes of vessels traveling between the Mr. VANDENBERG. Under $15,000, which are temporarily under the control United States and our Territories and what does the language mean? It says: of the enemy, and, to be specific, I other p!aces. That not only means that Such protection in an amount not might point .out such a case as that of the cargo of the vessel itself could be in­ greater than $15,000 shall be so provided to Manila. The committee felt-1 think I sured-and I may say parenthetically the owner of any such property- may say this for the committee-en­ that the Maritime Commission has cer­ tirely in sympathy with the need for a tain moneys and authority under exist­ Does that mean $15,000 per owner, or protection retroactive to December 7 for . ing law to provide like coverage-but it does it mean $15 ,000 per property? Sup­ the losses experienced on that day and also provides for coverage of the personal pose 10 houses owned by the same man since that time, but it did not seem to us effects of people traveling on such vessels. were destroyed. Would the damage be properly possible to make a fair adjust­ The bill authorizes the War Damage $150,000, or $15,000? ment of losses existing in locations now Corporation to cover crops in the field. Mr. MALONEY. J. regret to advise the under the control of the enemy. So far as I can see, it goes all of the way Senator-because as I have earlier ex­ The bill provides a very broad oppor­ in providing limited protection against plained, I am among those who are re­ tunity for coverage. In the language of enemy attacks for the tangible property gretful that some sort of program has not the bill, the Loan Administrator-or the of Americans during this wartime period. been worked out-that as yet there i~> no War Damage Corporation-is authorized I suppose I ought to say-because I am answer to that question. That broad to provide free protection up to $15,000 among those always reluctant to see the power-and I pointed out in the begin­ to all property owners in the continental Government engaging in what is ordi­ ning that broad powers were grant.ed United States and its Territories. narily private business-that I have a under the bill-has been left to the Cor­ I wish to make it clear at this point, feeling that some of the insurapce com­ poration, and will have to be settled at however, that it is not mandatory under panies may have been lax in this in­ some later date-! hope very soon. the bill we are now considering to pro­ stance. Some of them sometimes are. Mr. VANDENBERG. Let me ask the vide free protection in that amount. To In fairness to them, however, I ought to Senator a general question. The Sen­ be specifically clear, there is no provi­ say that perhaps they have not been suffi­ ator has referred to British experience, sion as to amount. Fifteen thousand ciently encouraged by Washington, as which, of course, has been prolific. How dollars is the ceiling. The committee they sometimes are not. have the -British handled this problem? felt, because the hazards of war create The insurance companies ought to be Mr. MALONEY. I will answer that a nation'il problem, that the cost of pro­ in this field to some extent. It is sur­ question by saying to the Senator-and tection against this hazard and the pos­ prising to me, if true, that they have not again without apology-that I did not in­ sible payments as the result of loss should made a study of it during the past 3 or 4 troduce this bill. I did not know until be borne by the people of the United terrifying years. If they have made such the hearings were under way that I States as a whole and that the premiums a study, I am a little amazed that there would be asked to handle it in the Sen­ or cost for such repayment, if any, should is not a program. Passing that by-be­ ate. I have not had sufficient oppor­ come out of taxes. Some members felt cause we must look ahead in this war tunity to become entirely familiar with more strongly than others; but I think rather than too much behind-! am very the British program. I do know that the entire committee finally came to the hopeful, and I may say confident as well, the British have been paying premiums. view-at least until given the benefit of that the insurance companies will lend I think that under all the conditions the further study-that above and beyond their efforts and the benefit of their ex­ premiums are exceedingly low. I think $15,000 a premium should be charged. psrience and advice to the War Damage it wUl be amazing to the Senate when I The Federal Lean Administrator as­ Corporation, the Federal Lean Adminis­ state that from the brief studies I have sured us that he has been discussing this trator, and his assistants. I should like been able to make I am advised that the matter with insurance-company execu­ to assure them, if they need assurance, total war loss from bombing in Engll:md tives and officials. I think he told us that their advice and assistance -will be has probably amounted to less than that it was his plan to cooperate closely welcome. It is my own feeling that the $200,000,000. That was very surprising with the insurance executives cf America insurance companies of the country will to me. Actually there has been a profit­ in working out this program, which, so participate in this program, at least to if I may use the word-in the premium far as I know, has not yet advanced some extent. charges for war-damage protection in very far. The suggestion was made to Mr. VANDENBERG. Mr. President, England. I understand there is a plan the committee by a representative of an will the Senator yield? under way to reduce the charges for war insurance company or companies that Mr. MALONEY. I yield. protection in England, if the reduction certain companies would like to partici­ Mr. VANDENBERG. Am I to under­ has not already been made. pate in the program on a reinsurance stand from the language of the bill that The coverage in England is compulsory basis, and that they were offering their there would be no liability about $15,000 and general. That would not necessarily complete cooperation to the Govern­ except as the result of an insurance con­ be the case in the United States. Eng­ ment in the matter of adjustments and tract for which a premium is paid? land is a small, compact country. Every · 1942 CONGRESSIONAL RECORD-SENATE 959 person in England who owns property movable business assets and certain, types gress, and would create confusion, debate, needs this sort of protection. There are of chattels and goods are varied, averaging and difficulty which might not very easily many Americans in the midwestern sec­ approximately 1¥2 percent of the value of be overcome. tion of our country who, if a premium such goods and chattels. · Mr. BURTON. Mr. President, will the were charged, might not believe that they One familiar with the insurance busi­ Senator yield? were in need of protection. As I under­ ness, and in particular the fire-insur­ Mr. MALONEY. I yield to the able stand, in England there is a vast reser­ ance business, will realize that under Senator from Ohio. voir of funds coming in, as the result of existing conditions that rate is insig­ Mr. BURTON. Let me inquire whether the fact that all property owners are­ nificantly low. there has ever been anything of this kind­ paying premiums. It is my understand­ Mr. VANDENBERG. What the Sena­ before, either in principle or in fact, in ing that until very recently the Govern­ the history of the United States. If not, tor is finally saying is that the bill in will the Senator explain why it is desir­ ment of Great Britain, insofar as real essence is a recognition and acceptance property is concerned, matched the pre­ able and wise to enter into such a pro­ of what is probably an unavoidable ob­ gram at this time? mium payments of individuals. So, after ligation on the part of the Government, this period of time, I am informed, they Mr. MALONEY. Yes; I shall explain ahead of any possibility realistically to that, probably in a feeble sort of way. have a sizable fund out of which war assess the details. damages have been paid or settled in This is a new experience to the United part. There has not been, as I under­ Mr. MALONEY. I guess, to answer States. It is my understanding that dur­ stand it, a definite effort on the part of the Senator's observation in a word, that ing the World War private companies Great Britain to adjust damages or losses . the answer is "yes." I cannot let the engaged in this sort of damage coverage. in full; but, rather, Great Britain has remark pass, however, without pointing The Senator knows that there were not made payments sufficient to put the out that the Federal Loan Administrator very many planes then, that the airplane property back in shape, let us say, so that has the British experience to guide him; was not the important factor. in war in people can live in it or do business in it. he has the benefit of whatever mistakes 1917 and 1918 that it has now become. The Senate will readily understand that or errors may have occurred in the There is a burning controversy in Con­ under a program such as this, without British plan; and I cannot help but gress and elsewhere as to the importance advance studies such as those undertaken feel, despite the great difference between of the airplane, whether or not it over­ by the insurance companies, it is difficult conditions in our country and those in shadows in importance other weapons of to determine the value of large or exten­ England, that he is in a position to war; but we have e~isting now a hazard, sive properties. As of today we are oper­ write a plan that will provide for our a threat, and a situation of a kind that, ating under just that handicap. Our people even better protection than that until the vicious attacks were made on the losses, if they were to . come tomorrow' which the British have been able to pro­ freedom-loving countries of Europe, never would have to be settled and paid for by vide up to now for their people. I think before existed. We now have planes the Federal Government without a very it should be said here that we are that can travel many thousand miles, definite knowledge of what the property naturally fearful of the possibilities of carrying heavy bomb loads, and that are was worth today or last week. b::>mbing, although we are doubtful that in the hands of fanatics and men who :J.o So we are more or less feeling .our way bombing could be very successfully un­ not care so much for life as we do. so, in this program. We do not know just dertaken over here; and if we are to while we hope no such thing will happen, how far we are going, or exactly in what take into account the experience of we have a right to expect, and we should direction. Mr. Jones does not seem to Britain, if there is any appreciable anticipate bombings in our country. think so, I may say, but as I see it we are amount of protection purchased by large Mr~ BURTON. Let me ask the Senator putting a rather heavy burden of respon­ property holders in this. country, there one more question, please. sibility on the Federal Loan Adminis­ should be, as I see it, no loss or any Mr. MALONEY. Certainly. trator and his associates and the War great loss, to the Federal Government. Mr. BURTON. Do I correctly under­ Damage Corporation. I should like to It is even within the realm of possibility stand, therefore, that the occasion which. say that I get considerable comfort from that we may derive a profit. really giVes rise to the insurance fen.­ the fact that we are so far away from our Mr. VANDENBERG. I thank the Sen­ tl_lre of the bill is related to bombing, the ator for his explanation as far as· it goes. new incidents which have come about, ~nemies, and additional comfort from and the method of warfare, and perhaps the knowledge that up to now the losses Mr. MALONEY. I shall be pleased to goes back to the fact that war creates a in Britain seem to be so low under go further if the Senator can think of situation somewhat like that of a catas­ existing conditions-probably less than the questions. trophe such as an earthquake or a :flood $200,000,000. Mr. VANDENBERG. It is not the in a city in the United States to which There is provided under the bill, as the Senator's limitation of information; it is the United States has always responded Senator knows, funds up to the extent of the fact that we are legislating on faith, as a matter of national interest, and has $1,000,000,000. I have gone rather far as the Senator very frankly says. tried to spread all over the country the by way of explanation because I wanted Mr. MALONEY. That is correct; and burden of a loss that occurred in one to give as much detail as I could in I regret it. I specifically pointed out that place and hour. an~wering the Senator's question. heretofore I think someone-and I It is now proposed to provide insurance Mr. VANDENBERG. I appreciate that do not think it was the Congress-had in the case of a bombing or other isolated very much. the responsibility of giving carefUl study incident of damage, rather than for what Mr. MALONEY. I have just now had to this subject. Perhaps a study has might be the result of an old-time war handed to me, and I should like to read been made; perhaps it· is avaUable to the of invasion and the taking over of some to the Senator, a statement of part of Federal Loan Administrator; perhaps it of a country's possessions, such as has the British plan. I do not know that is now in his files. I have aot that in­ been experienced in years past? the language is the British language or formation; but on the basis of existing Mr. MALONEY. The Senator has the language of Parliament or of a gov­ conditions, the possible dangers of bomb­ fairly well explained the mat~r; but I ernmental agency of Britain, but I shall ing, and what we know about what has should like to emphasize a part of what read the statement: occurred elsewhere in the world, it · he has said. Not only in times of disas­ The compulsory annual contributions with seemed to ihe committee, as a result of ter and :flood in our own country have we . respect to real property and Immovables the suggestion from the Reconstruction appropriated money and turned it over amount to approximately 10 percent of the Finance Corporation, that we should act to the Red Cross and other charitable annual rental values of such properties, now. The hearings will show that the organizations for relief to the localities and are uniform throughout the country. Secretary of Commerce or, rather, the affected in this country-the Mississippi Farm properties and land devoted to cer­ Federal Loan Administrator was urged to Valley and othm. places-but, Mr. Presi­ tain uses are assessed at a lower rate, ar: 1 certain minor types of property are work out the program speedily, because dent, we have sent relief to Japan in its exempt from compulsory contributions. we could all foresQe th!:i,t, unless a definite dark hour, to the extent of hundreds and Compulsory contributions are collected by program were worked out· in advance of hundreds and hundreds of thousands of the Commissioner of Inland Revenue. The any possible bombings, the whole prob­ dollars; indeed, I think I might use the premium rates. for policies of insurance on lem would be thrown into the lap of Con- word "millions," but I do not have the 9GO CONGRESSIONAL RECORD-SENATE FEBRUARY 3 figures at hand. Time and again Con­ · tion to a reasonable extent and in a tion that there are interests on the west gress has appropriated money to help reasonable amount. coast wh:ch were mentioned in the com­ stricken people beyond our own bound­ · Mr. BONE. I understand that, but I mittee, and certainly comparable inter­ aries, and I could riot resist the oppor­ am confining my inquiry to the proposals ests on the east coast, owning or control­ tunity afforded by the Senator's question in this measure. If it becomes a law, ling properties running to a value of to point out that, excepting for this kind would it not provide, in effect, almost many millions of dollars who are per­ of very generous treatment to peoples automatic coverage? fectly willing, we were advised, and I now fighting us in the Orient, Japan Mr. MALONEY. No; not beyond an might say anxious, to pay a premium for would not be nearly so well off as she is amount decided upon by the War Dam­ this excess protection. I do not know at this moment. age Corporation, and for less than how carefully the observation was made, Mr. BONE. Mr. President, will the $15,001 unless between now and then an but I do know that in some instances they Sen a to!' yield? amount is fixed. Between now and that had been buying this sort of coverage up · Mr. MALONEY. I yield. time the War Damage Corporation will, to the 7th of December. Mr. BONE. As I read the proposal, I am assuming, arrive at a figure for an Mr. PEPPER. Mr. President- and listen to the explanation· of the amount beyond $15,000. After this bill Mr. VANDENBERG. Mr. President, if Senator from Connecticut, I gather that becomes law, the property owner must the Senator will permit me, I should like it would rest solely in the discretion of pay for protection. That is today's to interrupt first, because, perhaps, the the Loan Administrator as to whether or situation, I may charge. Senator from Florida would have some­ not there would be up to $15,000 recovery Mr. PEPPER. Mr. President, will the thing to say on the point I want to ask without payment of a premium. Senator yield? · the Senator from Connecticut. It seems Mr. MALONEY. That is correct. Mr. MALONEY. I yield. to me that we can allow ourselves to be Mr. BONE. Would that mean that Mr. PEPPER. I cannot see anything drawn into a very dangerous responsi­ the person who sought the protection wrong, I confess, with the principle that bility if we pursue the philosophy of the would, first, have to make formal appli­ if the indi.vidual citizen loses his home Senator from Florida, because, if the cation for insurance coverage? or business because of a bombing attack Central Government is responsible to a Mr. MALONEY. Not at all. as a part of the war in which the whole citizen for the destruction of his home by Mr. BONE. Is it intended to be a country is engaged the loss should not a bomb as an incident of war, why is it blanket coverage? fall disproportionately upon him. In not equally responsible, in dollars and Mr. MALONEY . . A blanket coverage other words, I d<' not see why it does cents, to a business that is destroyed by exists now, without specifying the not come within the principle of the con­ the bomb of a priority order, for in­ amount; the language, I believe, is a stitutional provision with regard to tak­ stance'? What is the difference? reasonable amount. It will become ing private property for public use, which Mr. MALONEY. There is some differ­ necessary, however, for the Federal Loan gives the right of compensation. ence, o.f course, as the Senator from Administrator or the War Damage Cor­ So I should say that it is a shortcoming Michigan knows. We have none of us as poration, in my judgment, pretty quickly of the measure if it fails to give that kind great a safeguard against war hazards to set a figure on this so-called free pro­ of protection to the individual citizen. of bombers as we have against the war tection. The Senator raises a very im­ A bcmb may hit your ho;.ne or it may hit hazards of a misplaced or ill-advised or, portant question. I am assuming that my home, or it may hit my neighbor's but probably necessary, priority order. between now and the time the bill be­ home, but it is an incident of war in We have some power to correct that. We comes a law, the figure will have been which we are all engaged. I do not see are finding it pretty difficult, I must con;. reached, and, in the interim, the people why the whole people should not bear the fess, but we have the power if we would of the United States will be covered under loss of what may be the misfortune of use it. this program and have the benefit of the any one individual or group of indi­ Mr. VANDENBERG. One would be as blanket policy providing a reasonable viduals. fatal as the other. protection. Mr. MALONEY. I am assuming the Mr. MALONEY. The Senator knows, Mr. BONE. Let me put it in a some­ Senator means up to a certain amc.unt? so far as I am concerned, I was very what more concrete fashion. Let us en­ Mr. PEPPER. I do not see any neces­ early anxious to do something about that gage in a violent assumption. Suppose sity for a limitation, because, whether it situation. I wanted to train the troops in there should be a bombing raid by the is a private individual, a firm, an associa­ the bureaus. Japanese on San Francisco, and they tion, or a corporation, it is the property Mr. VANDENBERG. What I am say­ were able to burn down the entire city, by chance, the unhappy chance, of the ing is that it seems to me there must be destroy it almost as completely as it was one who suffered. Take New York, for some delimiting line to the philosophy destroyed in the great fire of 1906. example. If one building is destroyed by submitted by the Senator from Florida Mr. MALONEY. I think the destruc­ a bomb and the buildings on either side [Mr. PEPPER]. tion then was less than 50 percent, al­ are not injured, even if the building is Mr. OVERTON. Mr. President, will though I am not sure as to that. owned by a corporation or someone else, the Senator yield? Mr. BONE. I saw the place afterward, I do not see any reason why any part of The PRESIDING OFFICER. Does the and it looked bad enough to convince one the loss should fall more heavily on the Senator from Connecticut yield; and if that it ·.vas almost wiped out. If this bill owner than upon the people of the whole so, to whom? should become a laW, would it automati­ country. Mr. MALONEY. I yield to the Sena­ cally provide for every person in that Mr. VANDENBERG. Mr. President, tor from Louisiana. area insurance up to $15,000 on the prop­ may I ask a question there? Mr. OVERTON. If we pursue that erty that was destroyed? Mr. MALONEY. I should like, first, to theory to its logical conclusion, it seems Mr. MALONEY. It might. It would present my own view. I at first shared to me that the Federal Government depend upon the decision reached by the the view, let me say to the Senator from should not simply protect property but War Damage Corporation. Florida, that he expresses. I have not also should protect human life: and en­ Mr. BONE. What I am getting at is yet completely divorced myself from that deavor to compensate for whatever loss the text of the act. It would rest in the' view; but it seemed to be the opinion of there may be to a family when the bread discretion of the corporation as to what the majority of the members of the com­ earner is taken away. amount should be paid? mittee that, up to a certain point, pre­ Mr. MALONEY. Yes; I am afraid we Mr. MALONEY. The text of the act miums should be charged. My opinion shall yet have that proposal, Mr. Presi­ would provide nv protection whatever for was in accord with that of the Senator · dent. a catastrophe in San Francisco today or from Florida, but it was pf'etty hastily Mr. OVERTON. Suppose the father tomorrow or until the act is passed. formed and was without study, so I d ~ d or husband is killed by a bomb; no pro­ Mr. BONE. I understand that. not press the matter. I do not know that tection is given to those who survive: Mr. MALONEY. The people of San I would now do so. The bill as reported but, under this theory, if some rich cor­ Francisco and all other people, as of seems to afford pretty wide protection to poration should have one of its buildings today, have the protection provided in a great majority of our people, and that destroyed by bombs, the corporation the order and coverage issued immedi­ is seemingly all important. It ought to would be recompensed at the expense ately after Pearl Harbor, which is protec- be said at tJ;lis point and in this connec- of the taxpayers. 1942 CONGRESSIONAL RECORD-SENATE 961 If the Senator will ·further yield, I see to ,give one that was definite until I had moral responsibility to that man's de­ no objection to a reasonable, very small the benefit of the advice of experts, the pendents. It seems to me it would be premium charge on property valued, say, insurance officials of the country. I very proper to include in this bill pro­ in excess of $7,500. I can readily under­ should want to consult with them before vision for persons who lose their lives. stand why it is not exactly insurance, I gave a definite opinion. Suppose a man sustains an injury because in order to get the benefit of it Mr. OVERTON. I think the Senator which results in his permanent disability, the owners of small homes, valued, say, is quite right about that. and his earning power is lost forever. at $5,000, would have to make applica­ Mr. PEPPER. Mr. President, will the He is a casualty of the war, just as much tion, and the probability is that they Senator yield? as is the soldier at the front. We know would not make application and would · Mr. MALONEY. Certainly. that war now has moved from the front to not get protection; but, when we get up Mr. PEPPER. The comment which I the homes of the citizens and to the fac­ into the higher figures, it seems to me made a moment ago directed itself to a tories where they work; and we shall ig­ there ought to be some reasonable principle which I thought was important nore the actualities of modern war if, in charge for premium. in this controversy. · the evolution of such measures as this Mr. PEPPER. Mr. President, will th~ I can readily distinguish the case men­ we do not take cognizance of the char­ Senator yield? tioned by the able Senator from Louisi­ acter of modern war. Mr. MALONEY. I shall not yield to ana, in which private catastrophe has Mr. BONE. Mr. President, will the the Senator from Florida until I make happened to overtake a citizen, a hurri­ Senator yield for a brief statement at a brief observation in connection with cane, or a storm, or an earthquake, or that point? what the able Senator from Louisiana something of that character. That is not The PRESIDING OF,FICER. Does the has just said. a part of the common effort in which the Senator from Connecticut yield to the I do not think it makes any difference, citizen's country is engaged, and in which Senator from Washington? so far as the large corporation is con­ he has a part. That is not the taking in Mr. MALONEY. I yield to the Sena­ cerned, whether it is charged a premium the public interest, as it were, of his tor from Washington. for the excess coverage, or whether it is property which entitles him to the moral Mr. BONE. I desire to say to the Sen­ taken out of the pockets of the tax­ benefit, under the constitutional princi­ ator from Connecticut that I did not rise payers of the entire country, because ple, of fair compensation. It either is a in the beginning to comment on the the Senator from Louisiana knows that matter of public responsibility or it is a ethics or mf'rals of the proposal but that is where, in the final analysis, it is matter of private responsibility in prin­ rather to seek information. coming from. We have the protection ciple, one or the other. I do not think The Senator from Florida [Mr. PEP­ of the excess-profits tax. We have the there is any more justification in princi­ PER] has referred to one or two matters intensifying demand of Congress and of ple for paying $500 than there is for pay­ which it seems to me raise some other the country that war profits be curtailed ing $5,000,000. If we recognize that the pertinent questions. Perhaps I should or completely erased. All those things loss occurs as part of a war hazard, then, not inject them into this debate, but they ·enter into this particular situation. I just as the soldier ought to get his in­ are closely allied to the principle he dis­ am not much disturbed about whether surance whether he is a millionaire or a cusses. we charge a premium to the. large prop­ man who is worth only 30 cents, because If a great fire arises in a city, such as erty owner or whether we provide him it is what comes to one who loses his life in San Francisco, it is a common danger, free protection, because I know that if in the prosecution of a war, I similarly so recognized by the authorities on mu­ a gasoline plant or a series of them are feel that the property-owner, whether he nicipal law. A tire department. in order destroyed on the west coast, the con­ is a large property-owner or a small prop­ to quench the fire, may blow down a sumers of gasoline over the country are erty-owner, ought to get his redress and citizen's building, and do it in the com­ going to pay the premium. I do not his compensation. mon interest, and there can be no re­ want to enter too deeply into that sub­ Mr. MALONEY. Let me say to the covery. It is a ma~ter of stern neces­ ject now. I shall try to discuss it later Senator at that point, if I may, that I sity; and th£. community does not make to the extent that it needs to be dis­ think in principle he is right, and it was the owner of the building whole when it cussed here. on that basis that I made certain obser­ blows down his building with dynamite. The committee has unanimously con­ vations in the committee; but I think That is another angle of this question cluded, however, that we shall have a that is largely offset by the fact that the of moral responsibility which has a legal ceiling, for the time being, at least, of large owners of p--ivate property seem basis. There is a further angle, and I $15,000. I should like to say, if it will anxious to get in their hands a contract am glad the Senator from Florida men­ give any comfort to the distinguished providing a specific coverage, and seem tioned it. Senator from Louisiana, that, in my very willing to pay the premium. It has been our practice to require the judgment, the Federal Loan Adminis­ Mr. PEPPER. The other point is this: soldier who is tendering his life, 100 per­ trator is closer to his view of $7,500 If $15,000 is fixed as the limit, there are cent,of himself, to pay premiums on his than he is to the slightly more gener­ many kinds of small businesses that are war-risk insurance. He doe~ not get any ous attitude of the Committee on Bank­ worth a great deal more than $15,000; war-risk insurance, as I understand the ing and Currency. so we are not limiting the compensation law, without paying a premium on his Mr. OVERTON. Mr. President, if I to the fair category of small business if insurance policy. If there is anyone -may be permitted to make a further ob­ w~ let that standard remain in the bill. who knows any principle of law to the servation, I am not raising any objection The last comment I desire to make is contrary, he can now so inform the Sen­ to the $15,000 suggestion contained in that I do not see anything extraordinary ate. It is my understanding that the the bill. My argument was in opposition about the suggestion made by the Sena­ soldier pays for every penny of insurance .to the other theory advanced here, that tor from Louisiana [Mr. OVERTON] that he gets. As the Senator from Florida there should be a protection and a cover­ the Government should even compensate pointed out, no one runs any greater risk age without any premium charge at all persons who lose their lives as the result than the soldier on the battlefield: yet under any circumstances. of bombing. Suppose the head of a he pays a premium for the insurance he We have other disasters in this coun­ household loses his life by a bomb: Is it gets, and God knows he is risking every­ try besides war. We sometimes have an abhorrent idea that the Government thing he has. He is not only running huge :tloods that sweep away property, shall give redress to that man's family the risk of what may come to him, but destroy human life, destroy farms and and dependents? I do not see anything he goes to the very source of the danger, cattle and crops and all that sort of thing, monstrous about the suggestion. If he and there subjects himself to every pos­ .and no compensation is made by the were a soldier at the front, and he lost sible hazard of modern war. I do not Government. his life, he would be entitled to certain wish to complicate the debate by drag­ Mr. MALONEY. I should like to say compensation out of the Federal Treas­ ging in every conceivable and possible to the Senator, for my own protection, ury. If he is performing the duty of a legal aspect-- that the opinion I gave was what the citizen in a factory making bombs, and Mr. MALONEY. I hope the ilenator able senior Senator from Texas [Mr. an enemy bomb falls through the roof will not do that. CoNNALLY] sometim~s refers to as a and kills him, I do not see why the Gov­ Mr. BONE. But I do not want the "horse-back" opinion. I should not want ernment is supposed to shun any sense of Senate to pass this measure on the LXXXVIII-61 962 CONGRESSIONAL RECORD-SENATE FEBRUARY 3 theory that we are monilly bound to take be frank with the- Senator, but it seems have been a final purpose, limited in action of this kind, for, if we are to to me-and I may point out that I am some way up to $200,000,000, perhaps for reduce it to the field of morals and of not a lawyer-that the broad powers of any purpose in the world, but that is the ·moral conduct, we should in the same authorization granted would extend that only possible justification for the Recon­ bill abolish the necessity of paying pre­ sort of protection. In other words, it struction Finance Corporation's action. miums on war-risk insurance on the could be done by regulation. Mr. CLARK of Idaho. All I can say part of every ·soldier in the. Army and Mr. CONNALLY. How could it be to the Senator from Ohio is that they every person in the Navy, because they done by regulation if the law did not au­ have done it, and their general counsel are seeking the hazards of war; the haz­ thorize it? expressed the opinion in the hearings, ards are not being brought to them. Mr. MALONEY. I think the language and it is in the record, that they had the Mr. MALONEY. I hope no Member of the proposed act does authorize it and legal right to do it. The Senator may of the Senate will take it upon himself on such a complicated subject much must be correct in his interpretation of the to try to throw the country out of gear be done by regulation. situation. all at once. I hope we will proceed with Mr. CONNALLY. If the law author­ Mr. MALONEY. I should like to point prudence and caution. izes it, that is all right, but it is not a out that among the powers which the ·Mr. BONE. I do not know what the matter of doing it just by regulation. I Reconstruction Finance Corporation has Senator means by his reference to throw­ am not in favor of the departments do­ is "to take such other action as the ing the country out of gear . .If this bill ing things by regulation unless we au­ President and the Federal Loan Admin­ is getting it into gear, I am for it. thorize it. istrator may deem necessary to expedite Mr. MALONEY. I was not in the Con­ Mr. MALONEY. It is authorized in the national defense program, but the gress in 1917 when the War Risk In­ the bill. I used the word "regulation." aggregate amount of the funds of the surance Act was passed, but I assume There is no direction here that it be done, Reconstruction Finance Corporation the decision to charge premiums on war­ but it seems to me the power to do it is which may be outstanding at any one risk insurance was reached after careful provided in the bill. time for carrying out this clause shall study by the Congress. I have no doubt Mr. CLARK of Idaho. Mr. President, not exceed $200,000,000." that then, as now, there was probably will the Senator from Connecticut yield? - Mr. TAFT. I cannot understand how a need for some self-restraint. The Sen­ Mr. MALONEY. I yield. this will in any way expedite the war · ator from Washington and the Senator Mr. CLARK of Idaho. ·I think I am program. I cannot see how on earth from Florida need not fear that the ideas correct in saying to the Senator from it can do that. I question whether the they have in mind will not come before Texas that the proposed act is not an au­ R. F. C. has any power whatsoever along the Congress. They certainly will. Some thorization measure primarily. The R. this line. It seems to me this has a lim­ of the proposals will be highly magnified. F. c. now has the power to do everything iting effect, and if we write in "enemy Some of the suggestions will be over­ the proposed act could possibly author­ attack," I am of the opinion that the generous, because every man likes to aim ize. It can do it, and has done it through R. F. C. cannot insure against damage at Utopia, but I beg Senators to realize amendment of its charter. I am sure the from some other cause than enemy that we have to be realistic, we have to Senator from Connecticut has previously attack. take a practical, sensible view. We can explained this, but .I was not on the floor - Mr. CLARK of Idaho. That is cor­ go only so far. All of us would like to at the time. The R. F. C. now has power, rect, if we place a limitation in the law, supply every last ounce and measure of under its charter, to do everything it but I was endeavoring to answer the protection to every last one of our citi­ wishes to do, and it already has taken ac­ suggestion of the Senator from Texas. zens. I thought we went extremely far tion regarding war damage insurance. This is not an authorization bill, and a few days ago when we provided that Mr. MALONEY. I probably did not all we can write in, if the R. F. C. is cor­ voluntary fire wardens and others would say it so clearly and precisely as has the rect in its conclusions, are limitations. come under certain governmental pro­ Senator. · Mr. MALONEY. It occurs to me that tection as to compensation. I know Mr. CLARK of Idaho. It has already we aid the national defense program to enough about human nature to realize issued two proclamations, or Executive a very considerable extent by protect­ that there is going to be no shortage of orders, prior · to this time, covering, by ing the morale of our people. I can see claims in that particular .department. blanket orders, any property lost after how the organization of industry on the There is a limit, ~:tnd the distinguished certain dates, which I fail to recall. All west coast, and probably on the east Senator from Washington, able lawyer this measure does is to authorize the R. coast, to some extent, might be builded as he is, knows that there is a limit, this F. C. to give another $1,000,000,000 to the up or strengthened by this kind of pro­ side of our natural desires, and far this War Damage Corporation-- tection, and I believe the morale of our side of his very generous impulses. I Mr. MALONEY. The amount is a people, so Important to national defense, hope that the Congress will not try to hundred million, with an authorization would be better under the assurance that go too far too fast. ; up to a billion. the Federal Government, which is theirs, . Mr. BURTON. Mr. President, merely Mr. CLARK of Idaho. The only thing would extend them this amount of pro­ m an effort to help define the limitations the proposed act would do would be to tection should the dark day come. of the proposed act referring to the ques­ place certain limitations upon the pow­ Mr. CONNALLY. Mr. President, the tions raised a few minutes ago, am I to ers heretofore exercised by the R. F. C., discussion has gotten away from the understand that the proposed act would or which the R. F. C. could exercise to­ point raised by the Senator from Colo­ apply equally to tangible personal prop­ day without this legislation. Those limi­ rado [Mr. MILLIKEN], who asked if the erty, as well as to tangible real property, tations were written into the law by the language employed authorizing the and therefore would apply to crops and amendment of the junior Senator ;from R. F. C. to pay damages on account of cattle, although the colloquy indicated Connecticut [Mr. DANAHER]. enemy action included sabotage. Was that it did not apply to cattle and crops, Mr. TAFT. Mr. President, will the not that the question? as well as to real estate? Senator yield? Mr. MILLIKIN. Whether the words Mr. MALONEY. I thought that I had Mr. MALONEY. I yield. "enemy action" included sabotage. tried to make clear earlier in my state­ Mr; TAFT. I question whether the R. Mr. CONNALLY. I merely asked a ment that it did apply equally to crops F. C. has any power to set up an insur­ question about that, and the reply was, and agricultural properties. ance corporation. My understanding is "Oh, no; it is not in the law, but they If there are no further questions, I that the hundred million dollars that was . can do it by regulation." That is what should be glad to conclude my statement, used was from the President's discretion­ I am protesting against. If it is not in but I shall be pleased to attempt to an­ ary fund, and I question whether the R. the law, it has no business in the regu­ swer any further questions Senators may F. C. has power to set up a corporation lations. I do not know whether it is in .wish to propound. · which can go into the insurance business. them or not. But I can conceive of Mr. MILLIKIN. Do the words "enemy It was granted very broad powers, to sabotage which would not be enemy ac­ a.ction" include sabotage? which I objected strenuously at the time, tion at all. Suppose a strike occurred. Mr. MALONEY. That is a question covering anything to do with war pro­ Suppose some rival unions engaged in which the committee did not take up, to duction or buying materials. There may controversy, and sabotage resulted; that 1942 CONGRESSIONAL RECORD-SENATE 963 would not be the result of enemy action Mr. President, I am anxious to con­ the limitation which is placed in the bill. at all. clude, and will' conclude unless there are It seems to me that is the only reasonable Mr. MILLIKIN. I should like to sug­ some further questions. way we can place a limitation at the gest that the word "attack" usually car­ - Mr. TAFT. Mr. President, I do not present time. ries affirmative connotations which are wish to detain the Senate more than a I wish to call the attention of the not present in acts of sabotage. moment. I have a good deal of doubt Senate to one sentence which appears in Mr. CONNALLY. I was trying to ex­ about the principle of this bill. I cer­ the amendment inserted by the commit­ press my resentment against the repre­ tairily do not admit in any way the prop­ tee, at the bottom of page 6, as follows: sentatives of bureaus who come here and osition advanced that the Government The Reconstruction Finance Corporation ts say, "No, it is not in the law. but we will should recompense every loss arising out authorized to and shall empower 'the War do it by regulation." of the war, because it is an impossible Damage Corporation to use its funds to pro­ Mr. MILLIKIN. I agree. conception; it cannot be done; we are vide, through insurance, reinsurance, or Mr. MALONEY. I hope the Senator otherwise, reasonable protection against loss not doing it. We are not repairing the of or damage to tangible real property and from Texas does not include me as one breaches ill families created by the draft. tangible personal property which may result of the representatives of bureaus. If we draft a man who is getting a salary from enemy attaclt, with such general excep­ Mr. CONNALLY. No. of $5,000 and pay him $21 a month, we tions as the War Damage Corporation, with Mr. MALONEY. I understood the do not compensate him for what he loses the approval of the Federal Loan Adminis­ Senator to talk about enemy sabotage. in salary. We cannot compensate every trator, may deem advisable. Mr. CONNALLY. I did not say that. business that is indirectly injured by the One feature of agreeing to compensate Mr. MALONEY. I so understood the war. It is simply an impossi'ble concep­ persons for damage is that a definite Senator. Enemy attack is covered by tion to carry out, and it never has been guide is provided. It is a fairly simple the provisions of the bill. . carried out. War is war, and the cas­ thing to insure property against damage Mr. AUSTIN. On what page is that ualities of war have ordinarily rested .by bombing, but if the phrase "enemy provision? I have been hunting for it. upon those upon whom they have fallen. attack'' is going to extend to the oc.cu­ Mr. MALONEY. It is on page 6, line When we find a perfectly definite thing pation of territory it opens up a practi­ 24; "from· enemy attack." we can do, then I think probably we cally indefinite field. For instance, in the Mr. AUSTIN. Does not that refer to should do it, and in this case we are fol­ occupation of the Philippines, probably · military attack? lowing the British plan. There is this after the army marches in, soldiers may Mr. MALONEY. That, I presume, difference, however, that under the Brit­ do damage by simply treating the prop­ would be. a matter of interpretation. I ish plan no one gets any free insurance. erty roughly. The Government may con­ had better not get in too deeply; but per­ The Government levies a compulsory fiscate property. There may be every . haps it would be military attack if enemy premium on every property owner in conceivable kind of claim every time the agents blew up one of our plants. I do Great Britain. If we could carry that Army knocks down a fence. In France not know. plan through, we should do so. Unfor­ there were filed a good many claims for Mr. AUS TIN. This question is not tunately, in this country, under the Con­ fences which our Army happened to de­ easy to decide, as I know from an event stitution, such a compulsory program stroy in the course of the fighting. We which occurred in St. Albans, Vt., during would be a tax on property directly, and may have every kind of indefinite claim. the War between the States. There a would have to be apportioned among the I think the situation should be made per­ raid was made starting from across the States by population, which makes it an fectly clear. I should like to have written Canadian line. People were murdered; impractical thing to do. So we had to an exception to make it clear that enemy a bank was robbed, and when an attempt consider whether we should insure prop­ attack does not include enemy occupa­ was made afterward to extradite the erty by the usual method, simply of let­ tion, but the committee finally thought murderers, the question arose whether ting anybody come in and get insurance that the War Damage Corporation that was an attack or not. The question if he wants to get it, which in the end would be taking a very great risk if they had to be determined by evidence of a probably would not cost the Government undertook to include in their insurance . military officer who was over the men anything. The difficulty is that many damage resulting from enemy occupation, who made the raid, and they were able people of small means would not come in and that a situation such as that in the to show that it was an attack. Other­ and get insurance. If a bombing raid Philippines, or growing out of any other wise, it would not have been an attack occurred and 25 residences were destroy­ occupation of territory, should be de8Jt in the sense in which I understand the ed, and 5 of them had insurance and 20 with after the property is recovered, when language is used in the bill. It would did not have insurance, then the owners we would have a chance to look over the have been the mere commission of a of the 20 uninsured properties would un­ whole field and not have a great many crime by an individual, which would be doubtedly come here and file their claims, claims filed which would hang around a ground for extradition and punish­ and Congress would pay them just as the Congress for the next hundred years. So ment by the authorities of the State of Government would pay the other 5. It is. I think it is very important that when th!s Vermont. It turned out otherwise be­ almost an impossible situation. insurance is given it be confined to a defi­ cause of the fact that this group of So I think we are justified in giving nite and perfectly definable property, and men was able to show that they were some free insurance. There v.'as some that, so far as possible, the value of the operating under military orders. . I be­ discussion in the committee whether it property be determined. lieve the same principle is involved in the should be $5,000 or $15,000. Personally, The British have no limitation, but language in question . . I think $5,000 is enough to protect the they have a provision limiting the Mr. MALONEY. Mr. President, I ordinary small residence. I think anyone amount of compulsory free insurance on should like to say to the Senator and who wants to be protected above that personal property such as furniture. to the Senate that Mr. Jones assured us amount should take out insurance, and I Everyone in Great Britain is compulsorily that he would come back to the commit­ do not have any question that anyone insured and pays the premium; but if he tee when he had a program and definite who owns a considerable number of wants more than a certain amount of plans. We urged upon him the necessity houses will apply for this insurance. If insurance on personal property he must for acting quickly, and we pointed out to Mr. Jones limits it to $5,000, that is per­ take out additional insurance and have · him what we felt to be the magnitude of fectly reasonable. If he wants to make the property identified. I think some lim­ his task. The very able Senator from the limit $15,000, I think that is rea­ itation on household furniture should Ohio in particular-and I think his view sonable. also be imposed by the War Damage Cor­ was shared by other Senators-expressed Replying to the Senator from Michi­ poration, because with respect to per­ the hope that we would have .at the gan, it seems to me the limitation is on sonal property the figure is perfectly in­ earliest possible momen~ a specific pro­ the individual owner, and that if a man definite. No one knows what the value of gram, and all of us regretted that we had six houses costing $15,000 apiece, and furniture is, and no one can find out did not have a plan to act upon at this they were all destroyed, he could col­ what furniture was present when the time. - lect only $15,000. That is the way I read damage occurred; There would be all 964 CONGRESSIONAL RECORD-SENATE FEBRUARY 3 sorts of claims for jewelry and other ar­ that we confront the inevitable necessity to its Bayonne, N. J., plant up to $15,000 ticles which might be kept in houses. So of ultimately translating these appro­ without contributing a penny to the I believe that if there is to be a limita­ priations into taxes if we are to protect Treasury of the United States to help tion the Corporation should certainly set the Republic against economic disinte­ carry the cost of such insurance, I do not a definite limit on the amount of personal gration internally, which can be just as see how the Congress can decline to ex­ property which may be covered by free fatal as anything that could happen to tend insurance to the men in the armed insurance. us externally. services of the United States without Mr. President, I feel that we &hould We confront fabulous war hazards. exacting a premium out of the soldier's pass the bill. The whole question of in­ Therefore, fabulous appropriations are compensation of $21 a month. surance is so complicated, the details are inevitable-and certainly they have be­ Mr. PEPPER. Mr. President, let me so countless, and there are so many come fabulous when in 6 days we order address an inquiry to the able Senator things to be considered that I do not ob­ expenditures equivalent to one-third of from Connecticut, who is handling the ject to leaving it to the War Damage Cor­ our entire annual income, and all this bill. poration, after we lay down the general before we have even started' upon the Mr. MALONEY. :Mr. President, will principle, to work out the complicated regUlar supply bills for the next fiscal the Senator yield? details. year. Obviously, this means equally Mr. PEPPER. I yield. Mr. VANDENBERG. Mr. President, fabulous taxes. In other words, every Mr. MALONEY. I wonder if the without resisting in any degree the pend­ dollar of appropriations finally repre­ Senator will not let us take action on ing legislation itself, and admitting the sents an exaction from the pockets of the . the bill. war necessity for something of this na­ taxpayers. They must be prepared to Mr. PEPPER. What I intend to say ture, nevertheless I wish to· repeat in es­ give us the same cooperation in respect is relative to a proposed committee sence what I sairt yesterday regarding the to tax bills that they give us with re­ amendment. fiscal phases of all this recent legislation. spect to appropriation bills, and they Mr. MALONEY. I am sorry that I This pending bill contemplates, or at must contemplate a tremendous degree misunderstood the Senator. least authorizes, an additional expend­ of sacrificial cooperation in this common Mr. PEPPER. In furtherance of the iture of $2,500,000,000. That makes to­ effort. I think it is very well, indeed, to thought that was expressed a moment tal appropriations of $37,500,000,000 in have that finality in mind while we are ago that we should not ignore, in my the last 6 Senate days. I am moved to initiating the process which leads to the own opinion, the question of compensa­ Paraphrase the poet: finality. tion or insurance of persons who may Let me make my point clear, Mr. Presi­ sustain loss of life or injury as a result Count that: day lost Whose low descending sun dent. I do not complain of these ap­ of enemy attack, I wonder if the Senator Sees not another billion propriations. I support them. There is would feel justified in accepting an Flung at Jap and Hun. no inexpensive way to fight this war. amendment to the following effect: All I am saying is that there also is no The War Damage Corporation shall with Mr. President, if appropriations could inexpensive or painless way to pay for all convenient dispatch make a. survey of win this war, victory is "in the bag." The this war. Yes; and, of course, it would the subject of compensation and insurance point I wish to make again-and I made cost still more to lose it. But when we for loss of life and injury to persons not it yesterday-is that appropriations only soon confront the grim, tough task of in the armed services which may result start to win the war. After the appro­ assessing unprecedented levies against from enemy attack, and report such recom­ -priations are made in the first place they our people; I hope there will be no re­ mendations as it may have to the Congress. must be e:tnciently spent and e:tnciently luctance here to also face this other I have in mind the thought that the managed. Never was there a better ·irresistible duty; and I hope the people­ subject is worthy of study. I do not demonstration of the necessity for scru­ all the people-who applaud what we do know of a more appropriate agency to pulous efficiency on the part of the ad­ now w111 prepare themselves to face the study the question of damage to prop­ ministrative officers of the Government tax consequences with the fortitude and erty by enemy attack. I wonder if the - than in this particular bill, which, as the the patriotism which will be required. Senator will be agreeable to incorpo­ able Senator from Connecticut in charge Finally, reverting to my other initial rating such an amendment in the bilJ. of the bill frankly says, must be taken thought, I have no doubt the people will Mr. MALONEY. Mr. President, I am substantially on faith. Not only in the thus respond if we give t.hem the most not the author of the bill. The question Congress, but in the country, we have the completely efficient war administration as to whether I would agree to accept right-aye, we have the duty-to hold of which we are capable; if we save them the amendment would not be important our administrators to the strictest ac­ from every nondefense · extravagance because my agreement might not have countability for maximum e:tnciency and which rigid and conscientious economy very great weight. Personally, however, minimum waste, error, and exploitation can provide; if we stop every profiteer in I think it would be a very serious mis­ in the management of the enterprises his tracks-whether he works with his take to inject this new thought into this which we thus finance. head or with his hands; in a word, if we important bill at this particular time. It Secondly-and it is the thing which I vindicate and justify the sacrificial uru.ty might provoke a controversy which rose chiefly to say-every one of these which all-out victory requires. We are would be far reaching and would delay appropriations ultimately represents a as yet far from this goal. But let every affording the protection which might tax upon the American people. I hope patriotic impulse be dedicated to its otherwise be sooner provided to people that as the country applauds us for our quest. who may need it. zeal and vision in providing appropria­ Mr. LA FOLLETTE. Mr. President, I I do no·t know that some such plan as tions to meet the emergencies-and I am think it will appear to anyone who reads that which the Senator from Florida has quarreling with none of them-it will the RECORD that the Senate is proceed­ in mind might not be worked out; but equally steel -itself to as loyally accept ing in the dark so far as the pending leg­ my immediate reaction to it is that it the taxation which must come to the islation is concerned. I merely wish to goes rather far. If I had to vote today people if the internal economy of the point out that if we are to accept the "yes" or "no" on the question, I should country is to survive. I repeat, as I said principle that damages sustained to vote "no;" because it would seem to me yesterday, that as against thirty-seven property through war, up to a limit of that from the standpoint of the Govern­ and one-half billions of appropriations in $15,000, are to be shared equally by pay­ ment such would be the safe course-al­ 6 days the Senate Finance Committee ments in restitution from the Treasury though with a chance to give the plan thus far has been unable to find an ac­ of the United States without any con­ some study I might feel differently about ceptable formula to raise only $7,000,000,- tributory premiums, we ought to be pre­ it. The Senator can accomplish his 000 in taxes. That gives you some idea pared to take the next logical steP-I purpo-se by a Senate resolution author­ of what lies ahead. do not see how we can escape it-and izing the committee to study such a plan. The tax burden which must come to provide insurance to the men in the I am hopeful that the Senator will not the American people inevitably will rep­ armed services, many of whom are under press for such an amendment at this resent a tremendous exaction and I hope fire, without exacting a premium from late hour, just as we are about to act, that our constituents, as they contem­ them. If the Standard Oil Co. of New with some Senators absent I say that plate the things we are doing, will realize Jersey is to be reimbursed for damage principally because the matter can be 1942 CONGRESSIONAL RECORD-SENATE 965 taken up without delay in another and Ushed. No protection w111 be available to able protection," and for the time being we what seems to me to be a more proper owners of property who, in the opinion of the thought that would at least afford some con­ manner. President, are unfriendly to the United solation and protection. And there we are. States. Senator MALONEY. I have the feeling that Mr. DANAHER. Mr. President, bear­ "I put on that release the following note we should be prepared for bombing. I think ing on the subject which has just been [reading]: this suggested undertaking is so tremendous opened up, it seems to me the record "Because of the great public interest in that we ought not to wait too long, although might appropriately show what was said this subject, it is requested that this an­ we continue to hope the bombings dl.'9 not in the committee on that point; and I nouncement be run in full." come. The insurance people should be busUy respectfully ask unanimous consent that There, again, it was intended as an insur­ engaged now. Do you have any insuranc~ Mr. Jones' testimony, from the top of ance policy. We are now asking that you au­ people working with you? page 6 to the middle of page 17 in the thorize the Reconstruction Finance Corpora­ Mr. JoNES. We are conferring with them tion, with the approval of the President, to right along; yes. Senate hearings, be incorporated in the Senator MALONEY. It would seem to me that RECORD. advance funds up to $1,000,000,000 to cover losses. it might be extremely helpful to us if the There being no objection, the matter Senator MALONEY. Mr. Jones, your creation program could be worked out reasonably soon, referred to was ordered to be printed in of this agency was under existing law, was at .least an outline of it, because if bombing the RECORD, as follows: it not? does come to a large city like New York it will Mr. JoNEs. Now, we have talked about rub­ Mr. JoNEs. Yes, sir. be a lot more difficult for Congress to work it ber and sugar. I might talk a little about Senator MALONEY. Have you discussed the out at that point after people may have suf· fered tremendous losses. the war insurance. As most of you know, matter with insurance companies? probably, due to the widespread fear of enemy Mr. JoNES. Yes. We were told by them Mr. JONES. It had not occurred to me, Sen· bombing immediately following Pearl Har- that they do not cover this character of in­ ator, that Congress would want to work it . bor, particularly along the west coast and the surance. out. It occurred to me that you would want Atlantic seaboard, I discussed the matter with Senator MALONEY. They have not to a very to delegate that authority to somebody; and the President and, with his approval, we great extent up to now. The reason I asked so, having authority to set up this corpora­ created the War Insurance Corporation, the question was because I recently talked tion, we did so, because there was no time to allocated $100,000,000 capital for it, and ad­ with one or two insurance officials or execu­ come to Congress. tives, and they said they had some idea that Senator MALONEY. I think you are entirely vertised that. We did not go into any great right, if you do work it out. But if you don't detail as to how it would be operated or what the insurance industry might like to under­ take this program or to participate in it. Has work it out, we will have to. protection would be afforded. Mr. JoNES. Oh, we will. I will read, if I may, the first press release any such word come to your attention? Mr. JoNES. Yes; we have had a number of Senator MALONEY. But if it is not worked that I made on that subject, which was in­ out until after the bombing comes, then Con­ tended, in itself, to be an insurance policy conferences with reputable representatives of insurance companies. They tell us that they gress will have a. very difficult time evading (reading): the issue. "DECEMBEa 13, 1941. will not carry this kind of insurance; that Mr. JoNES. Everybody now is reasonably "With the approval · of the President, the they cannot; that they do not have the re­ covered by the $100,000,000 provided. We Reconstruction Finance Corporation has serves. Their charges would be so very high, could advance some additional funds under created the War Insurance Corporation, with if they undertook it, that it would be an im­ existing law, but not a great deal. a capital of $100,000,000, to provide reasonable position on the people who had to carry the ·Senator MALONEY. One hundred million protection against losses resulting from insurance. dollars is an insignificant amount when you enemy attacks which may be sustained by Senator MALoNEY. I am inclined to agree talk about the bombing of one of our large owners of property in continental United with you; and I was rather surprised when cities. · That is what a battleship costs. States through damage to, or destruction of, representatives of private comp~nies indicated Mr. JoNES. I do not entirely agree with you buildings, structures and personal property, that they might undertake this program. I on that, Senator. Bombing is not that including goods, growing crops, and orchards. think that one of them told me that England serious. The result of a bombing is that it "Pending completion of details, any such started out with just such a plan as you pro­ looks a lot worse than it actually is. The losses will be protected from December 13, pose, and changed its system to some extent, losses look terrible, but when you clean up 1941, up to a total of $100,000,000. and that private companies are now partici­ and do the repairing I think $100,000,000 "Accounts, bills, currency, debts, evidences pating in the program there. Do you know would go a good way. anything about that? of debt, money, notes, securities, paintings Senator MALoNEY. I do not think so, my­ and other objects of art will not be covered. Mr. JoNES. We are studying their experi­ ence. There they have compulsory insur­ self; I disagree with you. If a bombing oc­ "For the time being, no premium will be curs, I think $100,000,000 will be insignificant. charged for this protection, and no declara­ ance; every one must take insurance and pay for it. I do not think we could have Mr. JoNES. They may not be able to get tion or reports required, unless there is a loss. planes enough over here to do very great "Other terms and conditions for such pro­ compulsory insurance in this country. A man in Nebraska, Iowa, or Kansas would not damage. That is the reason that we are ask­ tection will be announced as established. No ing that we be directed to go up only to a protection wm be available to owners of feel that he needed bomb insurance. Senator MALONEY. I am inclined to agree b1llion dollars, which I think wm be enough. property who, in the opinion of the President, If it is not, we can come back for more. are unfriendly to the United States." . with you. I assume that you think and the President thinks that even though a man Senator MALoNEY. I would like to ask the That was dated December 13, 1941. On does not want it and may not need it, he chairman a question at this point, if I may. December 22, 1941, I made the following should, because it is a war risk, be required to Has any request been made by insurance announcement, after conference with the pay his share of the cost? officials to be heard? President {reading): Mr. JoNEs. To begin with, there was no The CHAIRMAN. I think there are some here. "DECEMBEa 22, 1941. time to consider how to offer insurance to Are there any insurance company office-rs "The War Insurance Corporation, created people on the coast line, when we thought here? by Reconstruction Finance Corporation with we might get bombed tomorrow or the next Mr. HAID. My name is Paul Haid, president a capital of $100,000,000, will extend the same day or tonight. So we resorted to this pro­ of the Insurance Executives' Association. The protection to property owners in Alaska, H~t­ cedure, under authority given, and set aside chairman of the committee which has been waii, the Philippine Islands, Puerto Rico, and $100,000,000 for that purpose, so that we working with Mr. Jones' people will be here the Virgin Islands, as it does to property could have time to come up and discuss the tomorrow. owners in continental United States. matter with Congress. It is my thought­ Senator MALoNEY. I would like to ask for "As previously announced, the War Insur­ and when I say that I atn speaking of all of the record, if I may, whether or not any in­ ance Corporation wlll provide reasonable pro­ the executives and the people that I have surance company officials, other than those tection against losses resulting from enemy conferred with including insurance people­ who have been cooperating with Mr. Jones, attacks which may be sustained by such that this insurance should be carried by the have asked for an opportunity to be heard property owners through damage to, or de­ Government; it must be carried by the Gov­ before the committee. struction of, buildings, structures, and per­ ernment and perhaps largely at Government The CHAIRMAN. Is Mr. Hopps here? sonal property, including goods, growing expense. We might employ the insurance ;Mr. HOPPS. Yes, sir. crops, and orchards. industry to write it, but that might be ex­ Senator RADCLIFFE. Mr. Jones, you stated "Accounts, bills, currency, debts, evidences pensive. We contemplate that where there you had been informed that th.e rates which of debt, money, notes, securities, paintings, is a loss we will ask the regular insurance would be charged by private companies would and other objects of art will not be covered. adjusters to adjust that loss and report to be very much higher than the Government "When the plan has been fully worked out, us what they considered the loss to be. It would charge. Do you think that that result it is expected that a premium may be charged has not been determined what percentage of would necessarily follow? Would the sav­ for coverage of losses· in excess of some stated the loss the Government will pay. There, ings·be in the cost of administration? When amount. In the meantime, no application or again, there are many differing opinions. you work out the matter from an actuarial report will be required unless there is a loss. Some think we should pay a hundred percent standpoint, if the Government can do it very "Other terms and conditions for such pro­ of the loss; others think a lesser amount. much more cheaply than private companies tect;.on will be announced as they are estab- For that reason we used the words "reason- can, then the savings must result either from 966 CONGRESSIONAL RECORD-SENATE FEBRUARY 3 some method of paying losses or in handling Mr. JoNES. We can do that ourselves, Mr. JoNES. That I do not know. We can- the business. Do you know ·why it is that by our own activities. We do not need an not get over there. · . the Government can do it so much more amendment. Senator DANAHER. It may all be gone, for cheaply? Senator CLARK of Idaho. The bill provides all you know. - Mr. JoNES. The insurance companies have that- Mr. JoNES. It might be. But we think to do it at a profit if they do it. They are "Such protection shall be limited to prop­ also that Congress would make it good. supposed to include a profit; and they have erty situated in the United States, including Senator DANAHER. I assume· that the need their overhead-- the several States, the District of Columbia, for this war-protection coverage-let us call Senator SMATHERS. And their reserves. Alaska, Hawaii, Puerto Rico, and the Virgin it that instead of insurance-arises because Mr. JoNEs. This press release [indicating] and Philippine Islands." most of the ·private .contracts exclude dam­ fs an insurance policy. If there is a loss So, if this hill becomes law, you might be· age due to enemy attacks in time of war? we will ask the insurance companies to em­ limited by that language. Mr JoNEs. That is correct; all policies. ploy their adjusters; and they have offered Mr. JoNES. Yes; you are right We should Senator DANAHER. All outstanding policies to do the adjusting for us at cost. So that include some cf them. contain a declaration by the assured as to the would simplify the operation and. make it Senator BROWN. I am interested, Mr. eJones, value of t-p.e property .they seek. to_cover, or at about as economical and as satisfactory as in where the line is drawn oetween ·those least the amount of coverage they buy; is not possible. things that will be covered by private illsur­ that correct? Senator RADCLIFFE. Of course, if the ·com­ ance and thos?. that will be covered by Gov­ Mr. JoNES. I do .not know. panies adjust their own losses they could ad­ ernment insurance, and I wanf to give you Senator DANAHER. It is reasonable to think . just them for themselves as reasonably as an example and see if I have the distinction that is true, is it not? · they could adjust them for you? rightly in mind. Mr. JoNES. Yes. Mr. JoNES. They do not have the losses Senator DANAHER. Why would we not be themselves. If the property is privately in­ Lloyd's of London and a great many Amer­ justified in protecting those who have sought sured we do not cover it; we do not cover ican companies protect against the ordlnary risks of storm, fire, and so on, and so forth. coverage to the extent that they are not cov­ anything that can be covered by private in­ ered, and charging them a premium for it? surance companies. I take it that this bill would cover sinkings by enemy acti0ns, such as the submarine Mr. JoNEs. Well, that could be done, I as­ Senator RADCLIFFE. If you are going to uti­ sume. lize the adjusters for private companies to sinkir.gs that have occurred in the Atlantic. But I recall a collision that took place be­ Senator DANAHER. Why should not we, as a make these adjustments, then I assume they matter of policy, demand that that much could make those adjustments for themselves tween two ships, just outside of Sandy B.ook; protection be granted to the Government just as reasonably as they cculd make them about a weeK ago. As I understood it, those ships were running without lights, probably itself in this situation? for you? Mr. JoNES. Well, I cannot argue against Mr. JoNEs." Yes. because of Government regulations. They were probably covered by private insurance; . that. Among other things, we have discussed Senator RADcLIFFE. So there would not be covering everybody-getting back to the point any. economy in the matter of adjustment. and yet the cause of the accident is connf,<:ted to a certain extent with the war etiort of of the men in the servic~overing every­ Senator MALONEY. I think Mr. Jones is en­ body up to $2,000, $3,000, $4,000, or $5,000, tirely right.· The Government cannot do it the United States, that is, a regulation re­ quiring running without lights. In a case without a charge, and then if they want more any more cheaply than private companies protection, they must pay for it. That is one can; but the Government is prepared to take of that kind would the Government take the loss, or would they? idea that has been advanced, and it has a lot a loss and the companies cannot do that. of merit. That is the case; is it not? Mr. JoNES That is maritime insurance. Senator DANAHER. Suppose there were some Mr. JoNEs. The insurance company must We do not provide for maritime in:mrance. gasoline companies that had storage tanks :first write the policy. It must contact every­ Senator RADCLIFFE. Did you say that you on the Pacific coast, obviously open to at­ body in the United States who wants an in­ might not charge a premium? tack at any time. I assume that many such surance policy. Some man will say, "I don't Mr. JoNES That has not been d~termtned. gasoline and oil storage places are worth, let want that. It is the Government's responsi­ I have had a number of conferences with the us say, $10,000,000. A successful attack on bility. This is the Government's war. If I President abuut it. We have hac. a great one of them, wiping it out, would lead to a have a loss, my Government ought to pay deal of discussion among ourselves and with reimbursement of the full sum of $10,000,000. the loss." And you will probably have a situ­ insurance company executives, trying to de­ Is that your plan? ation confronting the Congress later where termine what premium, if any, we VI ould Mr. JoNEs. As I say, we have not yet de­ there will be losses that are not covered, and charge, and ':low we would levv it Bllt we termined what percentage of loss should be you will be appealed to to appropriate money have not reached a conclusion. paid. That would be a good deal like sinking to cover them. To us who have studied it, it Senator RADCLIFFE. If you do not charge a a battleship. If such a plant should be . seems very, very simple. If special war pro­ premium, it is really, I suppose, not insurance bombed it would seem reasonable to assume tection is to be provided, it should be by way in a technical sense but, rather, sq.me plan that the Government should assume the loss. of Government coverage. If we determine by which the Government makes good any But when you come to towns and cities where later to charge a premium we will do that, damage that is sutiered. bombing would be concentrated, they might and then a man is either covered or not, as Mr. JoNES. It is really a protection, rather bomb a building that was insured for $10,000 he himself determines. than insurance. Incidentally, some of the and it would not be worth $2,000, because of Senator MALONEY. I would like to make insurance companies have recommended obsolescence. It would not be our thought a further point, if I may. The Government that we call it protection rather than in­ that we should pay the total $10,000 for that is not able to run an ·insurance business surance. building that had been obsolete for 20 years. or any other business more cheaply than Senator RADCLDTE. That would seem to me And yet the owner might have it fully in­ private industry is, but in this particular to be a better term. sured. You can buy full insurance. instance private industry just could not Mr. JoNES. You are probably right about Senator DANAHER. He could not collect on afford to take the loss. Is not that the that. it, could he? point? Senator RADCLDTE. The word "insurance" Mr. JoNEs. Yes. He might show reproduc­ Mr. JoNES. Yes. is a little bit misleading in that respect. tion value.· The building might be in the Senator CLARK of Idaho. Pan-American Senator BROWN. Under section 5g, page 3, wrong neighborhood. Many things might Airways is awfully unhappy that their bases I think you have the power to take care of happen. A lot of property is covered for are not included. Is there any particular maritime insurance. more than its intrinsic value. reason why the Canal Zone, Wake Island, Mr. JoNES. But I think they already do Senator DANAHER. If we required a pre­ Midway Island, Guam, and Canton should that, Senator. mium on the basis of the amount that the not be included in the bill? Senator BROW.N. You mean private com­ property owner himself insures for and pays Mr. JoNES. I assume we will include, and panies? for, and if the insurance companies will ad­ we have intended that we would include, Mr. JoNES. No; the Maritime Commission. just both for themselves and for you, we the Canal Zone. It was an oversight that They write insurance of their own. would be protected and so would the prop· we did not. Of course these islands are Senator DANAHER. Mr. Chairman, may I ask erty owner; is not that a fact? a war risk, and there is no way to make a question? Mr. JoNES. That is correct. That has been an adjustment until you can get over there The CHAIRMAN. Certainly, and is being considered. to see what the loss is. Senator DANAHER. Why should we give Senator DANAHER. Has any consideration Senator CLARK of Idaho. They tell me that property owners a free ride under this pro­ been given to the Government's taking only these islands which belong to us should tection, and yet require all the boys that are a fixed percentage of the possible value o:f not be left out of the bill, in any event, sent into the service to pay $6.60 a month any property to be covered? realizing, of course, the impossibility of for their coverage? Mr. JoNES. I have discussed that. I have making any adjustment at this time. Mr. JoNES. I cannot argue with you on that. said that we have not determined whether it Mr. JONES. I think you are right about Of course, this is property insurance. should be all or a part, or if it is a part, what that. Senator DANAHER. How much of the $100,- part it should be, whether 75, 60, or 80 per­ Senator CLARK of Idaho. I have been asked 000,000 protection that you said was included cent. to amend the bill later by putting those ln. in that insurance policy of December 13, Senator DANAHER. What Is your thought of You would have no objection to that, I . 1941, should be used 1n the Phil1ppine the percentage as to which you have had dis­ · take it? Islands? cussions? 1942 CONGRESSIONAL RECORD--SENATE 967 Mr. JoNEs. I do not think we ought to pay Senator DANAHER. And in the event that a Mr. JoNEs. I certainly would be glad to do a hundred percent. billion dollars is insufficient, Mr. Jones, to anything Congress directed me to do. Senator DANAHER. How much less than 100 give all-over protection to property .in the Senator DANAHER. Oh, I know that; but as percent is the Government's fair risk? United States and all its outlying possessions, a matter of policy would you agree that it Mr. JoNEs. I would not want to say. I of course under this· theory we would be would be wise for us to do it? mean by that, I would like everybody to help obliged to make good whatever losses people Mr. JoNEs. I am not prepared to say that decide the problem and agree upon what is suffer in future abcve the billion dollars? I would. I have given a lot of thought to it, fair. Some people think we should pay 100 Mr. JoNEs. You mean, if the billion dollars too. percent; others think we should pay 30 per­ was not enough? Senator DANAHER. What is your reason why cent. If I had to make a guess-and I don't Senator DANAHER. Yes. we should not? want to be held to it-I would say 75 percent. Mr. JoNES. I think the Congress would do Mr. JoNEs. I do not know that I would be Senator DANAHER. Have we ever had this it. able to present them all to you. type of all-over protection in time of war? Senator DANAHER. What 1s the genius of Senator DANAHER. I ask for only one. Mr. JoNES. Not that I know of. this particular plan, then? Why do we not Senator MALONEY. Might I make one for Senator DANAHER. Has the Government await the event and then appropriate or him? ever been called upon as a result of war ac­ allow you to borrow whatever you need to Senator DANAHER. My colleague is too nim­ tivities, to make appropriations, making good make good the losses? ble. I would much rather hear from Mr. or restoring to property owners their losses? Mr. JoNES. I do not think I understand Jones. Mr. JoNEs. Some of these older Members of you. Mr. JoNES. What was the question? Congress would know. Senator DANAHER. Why should we do this Senator DANAHER. You said you had given Senator DANAHER. Does your experience, as at all if we are ultimately going to be called a lot of thought to whether the War Insur­ a result of which you have created this com­ upon to make good the losses, irrespective ance Co. or Corporation should or should not pany, give you any history of such a thing? of your billion-dollar limit? require a premium from the property owner. Mr. JONES. Po you remember, Senator Mr. JoNEs. I do not think your constitu­ I asked you to give one reason why a property WAGNER? You have been here a good while. ents would know whether you were going owner should not be required to pay a pre­ Senator DANAHER. I am not asking for any to do it or -not. Now they know it is done. mium. opinion senatorially. I am asking if, down Senator DANAHER. If we were not giving Mr. JoNEs. Why he should not? in the Reconstruction Finance Corporation, them a free ride from one end of Iceland Senator DANAHER. Yes. when you created this Corporation on $100,- to the other end of Borneo, so to speak, that Mr. JoNEs. Well, I don't believe I will give 000,000, and which you cover under this in­ would be one thing. But I do not under­ it to you, and I will tell you why; not that surance policy, as you call it, you had any stand why there is an obligation upon the I am discourteous. history that the Government at any time, as Government to make good to everyone the Senator DANAHER. Oh, I know that. a result of war, had made good losses because damage he may suffer to his property 1n Mr. JoNES. I intend to get all the advice _of property damage in war. time of war, unless we are to recognize it and counsel I can on the subject and to Mr. JoNES. There may have been, but I did as a principle that Congress should appro­ consider it all pro and con and then try to not look for it. This is a new kind of war­ priate for it and make it good. reach a decision as to what should be done. an aerial war. Do you recognize an obligation upon the Senator DANAHER. Well, you understand Senator DANAHER. There were no discus­ Government to make good such losses of that that is part of our function, too, and sions of any such history? property? one reason why we ask your advice is to know Mr. JoNES. We were considering a condi­ Mr. JoNEs. I think so. what ought to be done. If in the light of tion. Here was a condition. In the minds Senator DANAHER. Then, if there be such your conferences with insurance company of hundreds of thousands of people there an obligation, why should we limit it to a and counsel you cannot give us any, I want was danger, and we tried to allay that billion dollars? Why should we not await to know if we cannot postpone action on this danger. the event and pay whatever the loss is in until you have canvassed this situation. Senator DANAHER. Have you considered at due course? Mr. JoNES. That is for the committea to all extending any form of coverage as a result decide. of injuries to individuals in time of ·war? Mr. JoNES. I do not see any point to the argument. Senator BROWN. Mr. Chairman, I should Mr. JoNES. That has been discussed in our like to call attention to the fact that there discussions; every phase of it. Senator DANAHER. It is not an argument; it is a question. has been before the Congress of the United Senator DANAHER. Do you contemplate set· States for something over 120 years a con­ ting up a corporation to take care of casual­ Mr. JoNES. Well, whatever you can it. I can't imagine that you would ever lose more troversy between insurance companies and ties 1n civillan populations in time of war? the heirs of owners of ships which were de­ Mr. JoNES. Not beyond this. than a billion dollars. Senator DANAHER. This does not cover them I remember that a long time ago I saw a stroyed in the Barbary Coast wars shortly now, does it? show called Alias Jimmy Valentine, in which after 1800. Mr. JONES. No. there were two chUdren who were planning to On two or three occasions from that time Senator DANAHER. Do you understand that do something. down . to the present we have paid out as you would have the power, under your own They said, "We w111 ask tatber tor $50,000," much as $2,000,000 to the shipowners at one creative powers, to amend your charter and By a.nd by father came in and asked, "Why time. A good many times the Congress of extend it to cover casualties among indi­ do you ask me for $50,000?" the United States has passed bills which viduals? Their reply was, "Well, father, that is the various Presidents have vetoed. Mr. JoNES. At this time we could; yes. most we could think of." The last and final claims were before a Senator DANAHER. That is your understand­ I could not think ot more than a billion committee of which I happened to be chair­ ing? now. [Laughter.] man, and they were presented very fully to Mr. JoNFS. Yes. Senator DANAHER. Well, I do not want to us about a year ago. I think the claims there Senator DANAHER. So, if we do author!~ a suggest that you have lighter :fingers than were something like $1 ,500,000, still based on blllion dollars, under 15g of the pending bill, Jimmy Valentine. (Laughter,) . occurrences, the destruction of American you could amend the powers of the War In­ Mr. JoNES. I would like to have. ships, in the trouble we had with France surance Corporation and extend its coverage Senator DANAHER. My only point is that If along about the year 1800. to casualties to individuals? we are to seek through bare coverage, If we adopted the suggestion of my good Mr. JoNES. I do not know about tbat. I through adjusters' services, an appraisal of friend from Connecticut, we would have just doubt it, unleS$ we got some provision for it. loss, and ultimately to pay all the losses, that kind of situation. I think it is far better Senator DANAHEJt. Could you answer that, whatever they be, pro rata, then why should to take care of the situation by doing it be­ Mr. Hamilton? we give you authorization now to borrow an­ forehand than to leave the matter as it now is. Mr. HAMILTON. I think we have unques­ other billion dollars to set up one more cor­ I tried to put a period on these French tionably the right to amend the charter, but poration to do what we are ultimately going spoliation claims by reporting the matter the amount of funds available for purposes to do, only a billion dollars may not even be adversely to the Congress, but there is noth­ other than as defined in this blll is small. a fair measure of the total. ing to prevent the Senator from Connecticut The use of this bUlion dollars, if this bill Mr. JoNES. We do· not borrow unless we or the Senator from Massachusetts or any­ should be passed, would be confined to prop­ need it for this purpose. Incidentally, if we body else from putting in a new bill and still erty damage. adopted your plan, this would be a very sim­ asking for this $1,500,000 based upon occur­ Senator DANAlJiiR. But there 1s no question ple formula by which to do it. rences of 120 years ago. That is history. in your mind of your power to expand, by Senator . DANAHER. Provided we covered Senator DANAHER. May the record show amending your charter, your purposes, and those already covered and then made them that I have made no suggestions? I have cover casualty losses? pay a premium for the balance? aslted questions in an effort to receive full Mr. HAMILTON. That is correct. Mr. JoNES. We could do that. advice as a result of Mr. Jones' conference Senator D4NARBR. Then you would require Senator D.\:riAltEJl. If as a matter of poUcy with the insurance executives and others. more money, of course? we should do it, you would have no objec­ All my examination is in the direction of Mr. HAlllliLTON. Yes. tion? eliciting information. 968 CONGRESSIONAL RECORD-SENATE FEBRUARY 3 Senator BROWN. The Senator gets his ideas certainly one of the greatest burdens of You will note that we are requesting that across when he asks questions, nevertheless. Congress today, will be largely eliminated. our names be removed from the National Senator CLARK of Idaho. Mr. Jones, what Senator MALONEY. The Senator is entirely Youth Administration pay roll effective Feb­ 1s your thought with regard to the ownership right, if we work it out in advance. ruary 1, 1942, and that the allotment of Na­ of this property? Is it the plan, for instance, tional Youth Administration money which to compensate foreign owners? Mr. DANAHER. Mr. President, I de­ has been coming to Harding College for our Mr. JoNES. What? sire to make one further observation. assistance be henceforth used in the defense Senator CLARK of Idaho. Would it be con­ As one who has been in close attendance program. We have the approval of Harding templated by you, if you have given it any upon the work of the committee, I wish College in making this request. thought, to compensate foreign owners? to congratulate my distinguished col­ We are confident that we can all find other Mr. JONES. For example? league for the able presentation he has jobs whereby we can continue to make our Senator CLARK of Idaho. Suppose the made of the bill. It is a splendid piece of way in college. In fact, we observe a decided Swedes, the Dutch, or the British owned prop­ work. scarcity of labor which is affecting our own erty in, we will say, Hawaii. community. Mr. JoNES. I doubt it. -The PRESIDING OFFICER. Did the Chair correctly understand that the We are f>ersuaded that similar conditions Senator CLARK of Idaho. There would cer­ prevail throughout the Nation. We are won­ tainly be no obligation upon our Government Senator from Florida offered an amend­ dering if other students now receiving Na­ to compensate anyone other than the inhabi­ ment? tional Youth Administration assistance could tants of those Territories or our own people Mr. PEPPER. No, Mr. President; I was not likewise find other jobs instead, and if there, or would there? merely making inquiry. they, too, would not be happy to contribute As I understand it, there are some large The· PRESIDING. OFFICER. If there their share of the National Youth Adminis­ holdings by, I think, the Royal Dutch Shell; be no amendnient to be offered to the ' tration money to the defense program of the and some of the foreign-owned oll companies Nation instead of receiving it for themselves. certainly must have rather substantial prop­ committee amendment, the question is erties in Hawaii. I myself do not know, but on agreeing to the committee amend- We would like to urge that an investiga­ -ment. tion be made to find how many National Mr. KING, who is here, would probably know • . Youth Administration students would ba In any event,- it is possible, if not certain, The am~ndment was agreed to. willing to do likewise, and if it should be th:1t there are foreign-owned properties. The PRESIDING OFFICER. The found that other communities like our own It would be contrary to my way of thinking _question now is on the engrossment and do provide opportunity for young people to to have foreign owners compensated. But find other jobs, that the National Youth Ad­ then I hope. that -that will be given some third reading of the bill. · thought, because we could get into an awful The bill PANAMA CANAL trol ~nd regulation of petroleum. We have been operating under the existing The bill (H. R. 5767) for the relief Mr. PEPPER. Mr. President, on Sep- act for about .5 or 6 years, and this of A. Paul Johnson was considered, or­ tember 17, 1941, the Senate passed Sen­ amendment will make the control con­ dered to a third reading, read the third ate bill 1481, providing for recognition of tinuous so far as the act is concerned. time, and passed. the service of the civilian officials and There was no objection to the bill in the REUBEN OWEN employees, citizens of the United States, committee. The bill (H. R. 1903) for the relief of engaged in and about the construction of The PRESIDING OFFICER. The Reuben Owen was considered, ordered the Panama Canal. A motion to recon­ Questio.n is on the engrossment and third to a third reading, read the third time, sider the vote by which the bill was passed reading of the bill. · and passed. was made by the late-lamented Senator The bill was ordered to be engrossed Adams of Colorado. I ask unanimous for a third reading, read the third time, ESCO WOOD consent that the motion be made the and passed. The bill (H. R. 5085) for the relief of pending business, to be taken up for dis­ BILL PASSED OVER Esco Wood was considered, ordered to a position. third reading, read the third time, and Mr. BYRD. Mr. President, I shall The bill Theodore Roosevelt . Committee on Interoceanic Canals, Civil Service Commission appears in the· about exactly this kind of a hill. It is which held hearings on the bill, and report. They estimated that there might a matter which has been pending for a favorably reported it: be as many as 2,276 eligibles, but they long time in one form or another. This The Commission believes that like treat­ state they base the estimate on the is what President Theodore Roosevelt ment should be accorded all employees of American Experience Table of Mortality, said in 1916: a particular group. As special benefits have whereas those who have knowledge of I most heartily endorse General Goethals' been allowed members of the Army, Navy, and the hazardous health conditions prevail­ recommendation. As one who was instru­ Public Health Service, as well as civilian em­ ing in the Canal Zone during the con­ mental in getting this work under way and ployees who served during the construction struction period estimate that the maxi­ who has followed its progress with deep in- . period and who retire under the Canal Zone terest and keen satisfaction, I am greatly Retirement Act, it would appear that like mum number will probably be not more than a thousand. It is a rapidly dimin­ concerned in seeing proper· recognition ac­ recognition should be accorded former civil­ corded to the civilian employees. General ians separated without retirement benefits. ishing number, a frail remnant of that Goethals has designated them as the real The previous adverse recommendation of the gallant company which built the Panama builders of the Canal. I sincerely trust that Commission regarding this legislation was Canal. prompt action will be taken by Congress to­ based mainly on the cost thereof. However, Mr. McKELLAR. How much would it ward the early enactment of legislation to on the basis of additional information, this cost a year? this end. estimated cost has been greatly reduced, re­ moving any objection from this standpoint. Mr. PEPPER. If the estimate of the Civil Service Commission is correct, that Mr. HUGHES. Mr. President, will the Mr. McKELLAR. What proportion of there are 2,276 eligibles, the first year it Senator from Florida yield? these employees are aliens? would cost $1,700,000, and the cost would Mr. PEPPER. I yield. . Mr. PEPPER. The bill would benefit diminish thereafter. If the other esti­ Mr. HUGHES. The bill provides only only American citizens. mates are correct, of course, it would be for those who have survived, then? Mr. CLARK of Missouri. Mr. Presi­ less than half that amount. Those who Mr. PEPPER. Only for those who dent, if the Senator will permit, I think have the best knowledge of the subject have survived. attention should be called to the fact that estimate that even the first year's cost Mr. HUGHES. What about .the men during the construction period, which, of will probably not exceed $500,000. who worked on the construction of the · course, was before the present very much Mr. BYRD. What .does the Senator canal and who have died? improved sanitary conditions in the estimate the total cost will be, if it is a Mr. PEPPER. Happily or unhappily, Canal Zone, in many cases exactly iden­ million dollars the first year? it does not provide for them. It has been tical work was done by the Army and . Mr. PEPPER. It is a little difficult to very difficult to get recognition even for Navy personnel, principally the Army estimate what the total cost will be, but those who are living. personnel, and the civilian personnel. these people must have worked 3 years Mr. HUGHES. Mr. President, I ·have When Congress came to pass the Panama before 1914, and if the Senator will calcu­ in mind the instance of an electrical en­ Canal Act, they made a distinction and late a little he will see how old they must gineer who went to the Canal Zone and gave preferential treatment to the Army now be, and therefore how relatively few worked on the Canal for several years and Navy personnel in the matter of years any of them will participate in the during the construction period, being in retirement, promotion, and retired pay­ benefits sought. charge of the electrical work. At its in the case of the Army, promotion two Mr. CLARK of Missouri. If the Sen­ completion, being in poor health, he re­ steps in grade to anyone who had been ator from Florida will permit me to make turned to the United States, and shortly engaged in this work for 3 years. n statement on that point, I think the thereafter died, leaving a family not pro­ I happen to know of one case, that of a Senator will recall that the testimony vided for. Yet nothing has been done in very distinguished citizen of the United before the Committee on Interoceanic that case, nor has anything been done in . States, afterward a general of the Army, Canals discloses that it is very difiicult hundreds or perhaps thousands of sim­ Gen. Robert E. Wood, of Chicago, who is to make mortality tables regarding these ilar cases. It seems to me the bill ought very much in favor of this proposal. particular men, because it seems that the to be broadened to provide for the fam­ General Wood took advantage of the op­ ordinary mortality tables do not apply to ilies of those who were not so fortunate as portunity to retire with two steps up in them. Exposure to malaria and tropical to have survived to this time. grade, after he came back in the Army diseases during the period of 3 years has Mr. PEPPER. I confess that the same and became a general, and had made a very much accentuated the death rate, principle of justice applies, I will say to success in business. On the other hand, during the years, of the men who went the Senator from Delaware, but we have the man who until very recently was the through that experience, and therefore had such a hard time getting recognition executive secretary of the Governor's ordinary mortality tables are not applica­ for those who still live that we did not council of the Panama Canal Zone, who ble, and there is apparently no basis on want to burden the bill any further. did precisely the same work and sat on which any one can figure what the mor-­ Mr. McNARY. Mr. President, will the the other side of the table from General tality rate would be among these people. Ssnator yield? Wood during the construction period, Mr. PEPPER. I thank the Senator. I Mr. PEPPER. I yield. has until very recently remained in the am in error in not noticing that the Civil Mr. McNARY. I ask the able Senator Panama Canal service, but retired on an Service Commission estimated, as ap­ from Florida if it is true that a similar extremely meager pension, not in any pears on page 10 of the report, that the bill was reported favorably in the Seven­ way comparable with that given the average age of those who are eligible is ty-sixth Congress as well as in the pre­ Army and Navy personnel at the time the slightly over 67. vious Congress? previous act was passed. Mr. BYRD. Is this an annuity to be Mr. PEPPER. Yes. All the pending bill would do would be paid to those who are retired? Mr. McNARY. And those bills were to give to the diminishing number of sur­ Mr. PEPPER. No; this is an annuity placed on the calendar? vivors of those engaged in that very haz­ which will go only to those who are not Mr. PEPPER. Yes; this is the third ardous and heroic achievement, the con­ receiving any other compensation from time such a bill has been reported by the struction of the Panama Canal, compa­ the Government. committee. rable treatment with that given others, Mr. BYRD. Do they contribute any­ Mr. McNARY. Are not the bills in who in many cases, as I have said, did thing toward the annuity fund, as other question identical in substance? precisely the same kind of work during Government employees do? Mr. PEPPER. They are. the construction period. Mr. PEPPER. No; nor do those in the Mr. McNARY. So the committees, Mr. McKELLAR. What would be the Army and Navy who participated in the after having held hearings on three oc­ cost to the Government if the bill should construction of the Canal and were re­ casions, favorably reported the bills? be enacted? warded for their service. Mr. PEPPER. Yes. Mr. CLARK of Missouri. The Senator Mr. BYRD. There is a difference be­ Mr. McNARY. Similar proposed legis­ from Florida has later estimates than I tween the Army and Navy personnel lation had the endorsement of former have. It is a diminishing cost. The who were ordered to go to the Canal President Theodore Roosevelt? 974 CONGRESSIONAL RECORD-SENATE FEBRUARY 3 Mr. PEPPER. Yes; and of General unanimous-consent request for permis­ The PRESIDING OFFICER. The Stevens~ who was chairman of the sion to take the bill from the calendar clerk will resume the calling of the names Isthmus Canal Commission, which built and for the Senate to act on it at this of absent Senators. the Canal. time? The legislative clerk resumed calling Mr. McNARY. And of General Goe­ Mr. BARKLEY. No. the names of absent Senators, and thals also? Mr. PEPPER. No; my motion is to Mr. BAILEY, Mr. BILBO, Mr. BROOKS, Mr. Mr. PEPPER. And of General Goe­ take the bill up, if unanimous consent is BULOW, Mr. BYRD, Mr. CAPPER, Mr. thals, and of General Wood, who partici­ denied. I think I have the right to do CHANDLER, Mr. CONNALLY, Mr. GERRY, Mr. pated in the work, and also of the Civil that. GLASS, Mr. HERRING, Mr. MCFARLAND, Mr. Service Commission. Mr. DANAHER. Is it the Senator's MILLIKIN, Mr. STEWART, and Mr. VAN Mr. McNARY. The proposed legisla­ purpose to have the Senate act on the NUYS answered to their names When tion, then, in its whole course, from the measure this afternoon? called. · time the proposal was first made by Mr. PEPPER. Yes. The PRESIDING OFFICER. Forty­ former President Theodore Roosevelt, Mr. DANAHER. Ita unanimous-con­ nine Senators have answered to their has met with no opposition from any sent request is pending, I object. .names. A quorum. is present. source? The PRESIDING OFFICER. The Sen­ Mr. BARKLEY. . Mr. President, with Mr. PEPPER. That is correct, I will ator from Florida has moved that the the understanding that the motion of say to the Senator. · Senate proceed to the consideration of the Senator from Florida [Mr. PEPPER] Mr. McKELLAR. Mr. President, will the motion heretofore entered by the late , may be pending, I have no objection to the Senator yield? Senator Adams of Colorado to reconsider the matter going over until the next · Mr. PEPPER. I yield. the vote by which the Senate passed meeting of the Senate. Mr. McKELLAR. Am I to understand Senate bill1481, an act to provide for the Mr. PEPPER. Very well. the Senator from Florida to say that a recognition of the service of the civilian EXECUTIVE SESSION similar bill was introdued during the ad­ officials and employees, citizens of the ministration of Theodore Roosevelt? United States, engaged in and about the Mr. BARKLEY. I move that the Sen.­ Mr. PEPPER. Yes. construction of the Panama Canal. ate proceed to the consideration of exec­ Mr. McKELLAR. And it was not Mr. DANAHER. I suggest the absence utive business. passed, and during the intervening time, of a quorum. · The motion was agreed to; and the of course, probably many thousands of The PRESIDING OFFICER. The Senate proceeded to the consideration the men who worked on the Canal have clerk will call the roll. of executive business. died, and no provision has heretofore The legislative clerk called the roll, EXECUTIVE REPORTS OF COMMITTEES been made for them or their families? and the following Senators answered to The following favorable reports of Mr. PEPPER. That is true. their names: nominations were submitted: Mr. McKELL.An. I am wondering if Aiken Holman Nye By Mr. WALSH, from the Committee on the proposal is not going back a little bit Austin Hughes O'Mahoney Barkley Johnson, Cali!. Overton Naval Affairs: too far? Theodore Roosevelt was Presi­ Bone Johnson, Colo. Pepper Capt. Howard L. Vickery, to be a rear ad­ dent nearly 40 years ago. Bunker Kilgore Taft miral in the Navy for temporary service, to Mr. PEPPER. Well, that rather con­ Eurton La Follette Thomas, Okla. rank from the 22d day of January 1942. demns Congress, I am afraid. Clark, Mo. McKellar Thomas, Utah By Mr. THOMAS of Utah (for Mr. REYN­ Danaher McNary Tunnell Mr. McKELLAR. It goes back a Hmg Doxey Maloney Wagner OLDS), from the Committee on Military time. Ellender May bank Wiley Affairs: Mr. CLARK of Missouri. Mr. Presi­ Gurney Murdock Sundry oftlcers for appointment, transfer, dent, will the Senator yield? Hill Norris or promotion 1n the Army. Mr. PEPPER. I yield. The PRESIDING OFFICER. Thirty­ The PRESIDING OFFICER (Mr. MuR­ Mr. CLARK of Missouri. While I rec­ four Senators have answered to their DOCK in the chair). If there be no fur­ ognized the claims of the families of men names. There is not a quorum present. ther reports of committees, the clerk will who served on the Canal during the con­ The clerk will call the names of absent state the nominations on the calendar. Senators. struction period and who have since died, POSTMASTERS nevertheless it is only fair to say that The legislative clerk proceeded to call the bill, to which this measure seeks to the names of absent Senators. The legislative clerk proceeded to read be comparable, did not provide for any Mr. DANAHER. Mr. President, I ask sundry nominations of postmasters. pension for the military and naval per­ unanimous consent that my request for Mr. BARKLEY. I ask that the nomi­ sonnel who have died since the comple­ a quorum call be vacated. nations of postmasters be confirmed en tion of the Canal. It simply provided · Mr. McNARY. Mr. President, with bloc, and that the President be immedi­ for retirement pay in the nature of an vacation of the quorum call, will the ately notified. annuity. We are merely putting the sur­ motion of the Senator from Florida [Mr. The PRESIDING OFFICER. Without vivors of the civilian personnel on a com­ PEPPER] to proceed with the considera­ objection, the nominations are confirmed parable basis. That is, we are not giving tion of the motion heretofore entered by en bloc, and the President will be imme­ them any lump . insurance if they die; the late Senator Adams be the unfinished diately notified. we are not providing anything of that business when we reconvene at the next RECESS TO THuRSDAY sort. We are simply giving them an an­ meeting of the Senate? Mr. BARKLEY. As in legislative ses­ nuity on a basis comparable with the The PRESIDING OFFICER. The lack sion, I move that the Senate take a recess military and naval personnel. It seems of a quorum was announced a few min­ until 12 o'clock noon on Thursday next. to me that is about all we can do at this utes ago. The Senate can transact no The motion was agreed to; and