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1922. CONGRESSIONAL RECORD- HOUSE. 3801

HOUSE OF REPRESENTATIVES.. ti.r£lllent -of employees in the classified civil service, and for other :purposes " ; to the Committee on Reform in the Civil MoNDAY, March 13, 192~. Ser¥ice. S. 3209. An 11.ct ·granting to the Northern Pacific Railway ·Co. The House met at 12 o'clock noon, and was call€d to order the rjght t-o construct and maintain a bridge across the Missis­ by Mr. WALSH as Speaker pro tempore: sippi River ..at .Minneapolis, in the State of Minnesota; to the The Chaplain, Rev. Jam€8 Shera Montgomery, D. D., of- Committee on Interstate and Foreign Commerce. fered the following prayer : • S. 3170. An act r~oulating corporations doing a ba.nking busi­ 0 God, Thou art our everla~tin.g portion-the price~s gift ness in the Distriet of Columbia; to the Committee on the of all life, which can not be alt€red nor eonsumed. With this District of Columbia. day we have the assurance of safety, protection, and of love. ENROLLED BILLS PRESENTED TO THE PRESIDENT FOR HIS APPROVAL. Toward Thee our hearts, our minds, and our memories ru-e 11Ir. RICKETTS, from the Committee on Enrolled Bills, re~ quiCkened with the deepest gratitude. We would declare our -ported that this day they had presented to the President of need .and our acceptance of Thee as the source of all bl-essings the United States, for his approval, the following bills : that we. enjoy. 1\lay we take our pledge to do our part and take H. R. 10267. An act making appropriations for the legislative a care to live and to labor ior the good. Give wisdom -and di­ branch of th€ G-ov~rnment for the fiscal year ending June rection to all deliberation . With a heart of gladness and with 30, 1923, and for other purposes ; a spirit that serves may we lighten life's burden, lift life's load, H. R. 9041. An act authorizing the Secretary of War to and brighten life's way. Through Christ our Savi-or. Amen. grant to th-e town of Winthrop, Mass., a perpetual right of way The .Journal of the proceedings of 'Saturday was read and ap­ over appro:ri.mate1y 755 square feet of the Fort Banks Military proved. Reserv-ation for the purpo e of widening Revere Street; and RESIGNATIONS FROM COMMITl'EES. H. R. 8193. An act to amend the first proviso in the act en­ titled "An act to grant a certain parcel of land, part of the The SPEAKER pro tempore laid before the House the follow­ Fort Robinson Military Reservation, Nebr., to the village ·of ing re ·ignations from committees: Crawford, Nebr., for park purposes," approved June 25, 1906. Hon. FREDE.RICK II. GILLETTJ The Speaker of tl!e Hottse of Representatives. El\"'ROLLED BILL SIGNED. MY DE..ut Mn. SPEA"KER: I hereby tender my resignation as a member The SPE.AKER pro teiD}X)re announced his signature to en­ of the Committees on Claims; Coinage, Weights, and Measures; and ~xpenditures in the Department of Commerce, to take efl'ect immedi­ rolled bill of the following title : ately. S. 490. An -act to eon olid.Dte national forest lands. Very respectfully, yours, MICHAEL J. HOG.A....'l. EXTENSION OF RE:AiARKS. Bon. FREDERICK H. GILLETT, :Mr. DAVIS of Tenne see. .1\ir. Speaker--. Speaker of the Hou.se of Represe-ntativea, The SPEAKER pro tempore. For what purpose does the WaslMniJton, D. a. MY DEAR M.n. SPEAKER : 1 re pectfully tenuer my resignation as gentleman from Tennessee rise"? member of tbe Committee on Rivers and HarboTs. Mr. DAVIS of Tennessee. I ask unanimous consent to insert Very truly, YOUl'S, in the RECORD in regular 8-point type a letter written by mem­ II.ENRY Z. OSBORNE. bers of the Shipping Board to certain Members of the House, Bon. FREDEniCK H . GILL"ETT, and the reply the1.·eto. Tb.e Speaker of the House of RepreseMatives. The SPEAKER pro tempore. The gentleman from Tennessee DEAR MR. GILLE'l'T : I am notified that I have been chos-en by the asks unanimous consent to extend bis remarks in the RECORD by Committee on Committees to fill an existing vac.ancy in the Committee inserting in 8--point type a letter written by members of the on li'oreign Affair , and in accordance with the requirements for accept­ ance of snch honor and preferment, I hereby tender to you my resigna­ Shipping Board to Members of tl1e House, and their .reply tion as a member or the Committees on Claim , Expenditures in the thereto. 1s there objection? Department of Agricnltw:e, and Flood Control. Mr. l!IONDELL. Mr. Speaker, I think for the present I shall Sincerely yours, CYRE ·us CoLE. object. Mr. GARRETT of Tennessee. Will the gentleman yield be­ Bon. FREDERICK H. GILLETT, fore he objects? Speaker of the House of Representative&, Washington, D. a. The SPEAKER pTo tempore. Does the gentleman from Wyo­ MY DEAR MR. SPEAlrnR: I hereby tender my resignation as a mem­ ming withhold his objection? ber of the Committees on the Me1·cbant Maline and Fisheries, and Labor, Mr. 1\IONDELL. Yes. the same to take effect immediately. Mr. GARRETT of Tenne see. It seems to me that it is a SincerelY, yours, OGDEN L . .M.ILLS. matter that falls legitimately within the right of a Member. It The SPEAKER pro tempore. Without objection, the resigna­ is about a public matter of very great importance pending now tions are accepted. before a committee of the House, a legislative matter. There was no objection. Mr. MONDELL. I understand it js a letter written by cer­ MESSAGE FROM THE SEl'\'ATE. tain gentlemen in their individual capacity to certain other gen­ A message from the Senate, by Mr. Craven, its Chief Clerll:, tlemen, and their replyJ not an official matter. announced that the Senate had passed the bills of the following 1\fr. DAVIS of Tennessee. Wil1 the gentleman yield! titles, in whieh the concurrence of the House of Representatives Mr. MONDELL. Yes. was ·equested : Mr. DAVIS of Tennessee. The letter was written by certain S. 3170. An act regulating corporations doing a banking · busi~ members of the .Shipping Board as such to certain members ·of ness in the District of Columbia; the Committee on the Merchant Marine and Fisheries as such, S. 3209. An act granting to the Northern Pacific Railway Co. and a reply was made thereto, and on Saturday the letter writ­ the right to com;truct and maintain a bridge across the Missis­ ten by members of the Shipping Board was insertro in the sippi River at Minneapolis, in the State of Minnesota; and RECORD in the Senate. In addition to that, they gave to the S. 3265. An act construing the expression " all employees in press their letter at the time it was written, and references the classified civil service of the United States," as used in sec~ having been made to it in the press, it occurs to me it is nothing tion 1 of the act of May 22, 1920, entitled "An act for the retire­ but fair, their letter having been inserted in the RECORD and ment of employees in the classified civil service, and for other reference made to it in the press, that Members ()f the House purposes." have an opportunity to insert in the RECORD their reply. The message also announced that the Senate had passed with Mr. MONDELL. In -view .of the statement made by the gen­ amendments bill of the following title, in which the concurrence tleman as to the character of the correspondence, I shall not of the House of Representatives was requested : object. H. R. 10663. An act making appropriations to supply deficien­ The SPEAKER pro tempore. Is there objection! [After a cies in appropriations for th-e fiscal year ending June 30, 1922, pause..] The Chair hears none. and prior fiscal years, and for other purposes. . ' The matter referred to is as follows : SEN A.TE BILLS REFli;RRED, UNITED STATES SHIPPING BoARD, Under clau e 2 of Rule XXIV, Senate bills of the following Washington, March 6, 1922. titles were taken from the Speaker's table and referred to thei.r Hon. EWI.i.~ L. DAVIS, appropriate comrnitte.es, as indicated below : House of Representatives. S. 3265. An act construing the expression " all employees in DEAR Sm: The message of the President and the bill intro­ the classified civil service of the United States," as used in sec­ duced simultaneously by the chairmnn of the Senate Committee tion 1 of the act of May 22, 1920, entitled "An act for the re- on Commerce and the chairman of the Marine and Fisheries 3802 CONGRESSIONAL RECO){D-HOUSE. ~lARCH 13,

Committee of the House, having reference to further measures with reference to the manner in which the matter· has been considered es ential to establish, in full force and effect, an handled, we wish to call your attention to certain facts of which American merchant marine, were based very largely upon an you seem to be wholly oblivious. It is generally understood intimate study made by the United States Shipping Board that Mr. Lasker was appointed chairman of the Shipping Board after. extended bearings, at which men of all hade of opinion because of very sbrewd·and valuable political service rendered on the subject and intimately familiar with shipping were during the last campaign; he certainly could not have been ap­ present. pointed because of any knowledge of hipping matter . His ap­ In considerino- the question the attitude of political parties, pointment from a political standpoint has been fully justified past and present, was not given consideration by the board, because he bas demonstrated beyond question that he is a and the Democratic members of the board were governed master politician. After months of laborious effort he has suc­ solely br tbe real question involved: · ceeded in committing the President to an elaborate and 'expen­ (1) The neces ity for maintaining a merchant marine de­ sive ship-subsidy program, a position never taken by a previous veloped from the immense fleet called into existence by the President. More than that, 1\fr. Lasker has enmeshed all the ernergencie of war. members of the Shipping Board in this program. This is espe­ (2) The nece sary action to be taken to assure to the United cially significant in view of the fact that until now perhaps no States its former position and pre tige on the high seas. high Government official in this country has openly and boldly Aside from the economic necessity for. the establishment of advocated a~ ship ubsidy since the emphatic rejection of such an adequate merchant marine under the American flag, deerl suggestions many years ago. · con ideration was given to that aspect embodied in the mer­ Furthermore, Chairman Lasker, pursuant to the nonpartisan chant marine act, 1920, providing for the merchant fleet to consideration for which you innocently vouch, invited the Re· be a naval auxiliary in time of war. It is our opinion there publican members alone of the 1\Iercbant l\Iarine Committee and can be no divergence of opinion as to the necessity for the full the Commerce Committee to a dinner in hi home, and after he e tablishment of an American merchant marine; the only had sumptuou.ly fed them unfolded his ship-subsidy program question upon which there could be· divergence of opinion is and undertook to commit them to it ; and it bas since been whether aid, either direct or indirect, or both, should be repeatedly announced in the pre that Chairman Lasker has granted to accomplish that purpose. It i our opinion that the been in conferences with the Republican members of said com­ establishment of an American merchant marine will be im­ mittees, t-hat they had indorsed the ship- ubsidy proposition in possible without such aiel as will equalize present differentials principle, and later that a bill had been agreed upon by Chair­ that exist in favor of foreign shipping, and our recommenda­ man La ker, the President, and the Republican members of said tion to the President contemplated-direct aid only in the event committees. HoweYer, we predict that it will be demonstrated the indirect aids first suggested were inadequate to properly that Chairman Lasker misjudges orne of the Republican mem. develop and maintain an American merchant marine, the direct bers of said committees. aid itself being nonexistent if the indirect aid sufficed and Still further pursuing this nonpartisan cour e, a document o1 further limited a to profit to the hip only up to an adequate 268 pages, in which were assembled all ·the po sible arguments return to the operator on hi investment. This a sures no in favor of ship-subsidy legislation, and particularly in favor of profiteering and brings into being direct aid only when it be­ the bill which bas ·ince been introduced, was prepared and con· comes a final essential to maintain American-flag ship on the fidential copies thereof furnished to all the Republican members high· seas. af the Merchant 1\larine Committee and Commerce Committee. We understand that there will be a joint hearing of the ap­ It purported to have been prepared by the Bureau of Research propriate Senate and House committees on the bill in question, ,of the United States Shipping Board at the instance of the and we trust you will not deem it impertinent in us, the Demo­ latter. The undersigned, Mr. DAVIS, addressed a letter to the cratic membet·s of the United States Shipping Board, to sug­ Shipping Board, requesting a copy of that document a a mem­ gest to 3·ou and the other Democrntic members of the commit­ ber of the Committee on the Merchant Marine and Fisheries of tees of the Senate and House to withhold a final judgment the House of Representative , stating that a it had been pre­ with respect to this legislation until after the hearings have pared by Government officials at Government expense he pre­ been completed and full opportunity given to the members of sumed that be was entitled to a copy thereof. He received a the board to state the reasons guiding their action in unani­ reply from Chairman Lasker, in which he advised that those mously recommending direct and indirect aid to. American copies " had been completely exhausted." He further stated shipping, and so that the full details of the proposal submitted, that it bad been "prepared at the request of the President and which bas taken many weeks of survey and consideration, shall for him, and was furnished to him and to such per ons as he have been placed in all detail clearly before you. directed." This statement in spite of the fact that copies of Respectfully and sincerely, yours, said document had been furnished to all the Republican mem­ • GEo. E. CHAMBERL.A.IN. bers of the Merchant Marine Committee of the Hou e and the FREDERICK I. THOMPSON. Commerce Committee of the Senate, but to none of the Demo­ W. S. BENSON. cratic members. Having, as he believes, successfully lined up the Republican MARCH 9, 1922. members of said committees, Chairman Lasker has apparently Hon. G. E. CHAMBERLAIN, FREDERICK I. THOMPSON, and W. S. assigned to you gentlemen the task of lining up the Democrats BENSON, .Me?nbers United States Shipping Board, Washington, on said committees. However, you may tell Chairman Lasker D.(}. that we are not as easily ensnared a some people be bas come DEAR Srns : We are in receipt of yours of the 6th instant, with in contact with, and that we respectfully refu. e to be "bound regard to ship ubsidy legislation, which has been read with and gagged " while he and the rest of you advocates of this interest and astonishment. iniquitous ship sub idy bill industriou ly dis eminate your de­ Of course, it is your prerogative to zealously advocate the ceptive propaganda and lull the people and the Congress to passage of a bill which will confer upon you and the other sleep while yon complete the job. members of the United States Shipping Board the greatest The resourceful mind of Chairman Lasker wa again seen in power and widest discretion ever conferred upon any board. that a meeting in Washington of the Merchant Marine A ocia­ You . tate that "in con idering the questions. the attitude of tion was staged immediately after the delivery of President political parties, pa t and present, wa not given consideration Harding's addre s and the introduction of the ship sub idy bills. by the board, and the Democratic members of the board were This a sociation is composed of ship operators and hipbuilders, governed solely by the real que tions involved." together with a few citizens who have been artfully brought You also conclude your remarkable letter with the following: into the association and placed in the forefront for political We understand that there will be a joint bearing of the appropriate effect. Aside from the expected speeches and resolutions in Senate and House committees on the bill in question. and we trust you faYor of hip sub idy legislation we notice that one of you aen­ will not deem it impertinent in u. , the Democratic members of the tlemen "as a Democratic member of the Shipping Board" was United States Shipping Board, to Ru"'gest to YQU and the other Demo­ prevailed upon to deliver Jl. speech before said as ociation in the cratic members of the committees of the Senate and II o u~e to withhold a final judgment with re pect to this legislation, until after the hear­ interest of the ship ubsidy bill, and tho e more vitally inter­ ings have been completed and full opportunity given to the members ested have had that speech carried in the press throughout the _,. of the board to state the reasons ~tiding their action in unanimously country. recommenuin~ direct and indirect a1d to American shipping and so that the fulJ details of the proposal submitted, which has tal{en many weeks You ask us " to withhold a final judgment with respect to of survey and consideration, shall have been placed in all detail clearly this legislation until after the hearings have been completed before you. and full opportunity given to the members of the board to state We readily concede that our merchant marine problem is of the reasons guiding their action in unanimously recommending such tran cemlent importance that it ..shoulU be oi-ved upon direct and indirect aiel to American shipping," and so forth. merit and principle and not upon partisanship. However, It will doubtless be true, as you indicate, that the committees 1$122·. CONGRESSIONAL RECORD;_ HOUS'E. 38{)3 will be flooded with arguments in favor of the bill, and tl'lat fu:.om 1,022,()00 torrs iru 1870, almost exclusi-vl!ly sail, to 1,117,000 tons in 1912., two-thirds of wbi ·h wl!re steeL there will be no real investigation of the- p1:oblem involved. The mall shipping subsidies which Norway has granted to its mer­ Fuxtherlllore~ Chairman Lasker has repeatedly stated that thls chant marine can not have had a material effect on this growth, which subsidy bill would be promptly enacted. \V'e may readily assume is dtm to other circumstances. The merchant marine of this country (Gilrmany) bas, of course, that if the majority members of the two committees- are as been almost annihilated by the treaty of Versailles. Prior to the war represented by Chairman Lasker, as, soon as, the one-sided hear­ Germany had reachedJ perhaps th.e grea.test growth in her mer.chant ma­ ings are held the bill will be promptly reported to tfie Senate rine. This was not due to subsidies- or to. any other form of Govern­ ment aid that can be established. The greatest line in the world, the and the House for action, and if the leader are in sympatbl' Hamburg-American, is said never to have received a cent of' Government with the bill it will, at least in-the, House, probably be promptly subs~~ called up for action after· brief debate. And yet you presume From 1870 to 1912' Germany's Rhipping rose from ab6ut 1,000,000 tons in 1870, of which 90 per cent was sail, to over 3,000,000 ton in to suggest to us that we witbhold our judgment and keep quiet 1912, of wliich one-sixth only was- sail. . "until after the hearings have been completed.:' In requesting En the- final conclusions given in the said report it is stated : :you to write this letter Mr. Lasker knew full well that if this bill is fully and intelligently- discussed and is understood by the A study of the authorities on subsidies, taking intd account the poli­ cies adoptedt fly va-rious countrie-s, would' eem to i.Ddicate- that with the American people and they have time to express their will, there exc&I>tiorr of Japan the policy has not been important in the building up wnr oe such an emphatic protest that the bill will not pass at of _a merchant marine. - all'; that ft will meet the fate of similar previm1s efforts, which As a mattet oi fact, the merchant marine of J.apan was not were much less expen ive and baneful than this measure. You built up by Government aid, hut its growth was simply in keep­ will find that you are not only out of line with the member of ing, with Japan's marvelous industrial growth. They granted tfieo Dem<>cl'atic Party with but a few rare exceptions-, but tha.t substantially the- same c-'haracter of' :d:d as France, Spain, and you are also out of line with a very large percentage of the Italy, where it proved an absolute fallnre. Besides, the total members of the Republican Party. Government a.id granted by Japan does not amount to more· than Assuming an wi dom, as well as virtue and patriotism, for the postal subventions paid by the- United States. yourselves with regard to tliis· question, :you, on the other hand, And yet, in spite· ot the- nece sarily admitted fact that ship assume that we . members of the 'lUerchant Martne Committee sub hlies have- either not. been employed1 or- that they have and Commerce· Committee· are denseiy ignorant, whereas it is proven a failure in the other great maritime nations, the false doubtless true that the members of· these committees have de­ doctrine is being industriously circulated that it is nece sary voted as much study and consideration to these questi-on as for" the Bnft~d: States to pay subsidies, direct and· indirect; which yorr gentlemen. Besides, omk cour e of study has not been will aggregate more than the combined. subsidi-es paid by all the mapped out for us. Speaking as to our elves, we \viTI state that other nations on earth (omitting the legitimate payment for we have devoted a· great deal of study to merchant-marine service actually rendered for carrying- mail, etc.)' in ord~r to prob-lems ever since before any of you gentlemen were connected compete with the merchant marine of other nations, whose t:tuc:. with the Shipping Board, one of the undersigned having been cess is incorrectly alleged to. be due to subsidies. an active member of the Merchant ~farfne C<>m:mtttee for 12 The recent report of the Shipping Bnard, above referred to, years; and in addition to having read all of the "Voluminous after stating the facts above quoted', and much ruore to the same arguments in favor of ship subsidy prepared at the instance of effect, yet eondudes with the folfowfng final conclusi()n.- re­ Chairman Lasker, we have also read various books- written by markably ludicrous in view of tfie faets- previously· stated in the the leading authorities on the subject and the former congres­ report: sional debates thereon·. The- more we investigate the q:uestion A study of the pt·oblem would seem tO'· indicate that either the policy the more fully we become- convinced! that ship subsidies are of Oard. support of thiS suggestion limited as to profit to the ship only up to an adequate- return to the shall quote briefly from said document : operator on his investment. This. assures no profiteering and brings into Great Btitafu has neveu granted general navigation.. bountie nor being direct aid only when· it becomes a final' essential\ to maintain construction: honnties, with the. exception of the. early Elizabethan .America.IlJ flag ships on the higli seas. · subsidies above mentioned. Practically the only mone.Y aid given by Britain to its marine is. in the form of' postal snnventions. And yet the bilis introduced by the chai11men· 0f the Senate All th"(! writers seem to ag~:ee that the growth. of the British mer­ and House committees provide unconditionally and unequiv­ .chant marine i.s in no sense- due t<1 the small subsidy- paid, admitting ocally fur- botlr dtrect and indtreet subsidies, and in the-- last that the payments are in. exceBs of the _postal service rendered. The growth of the British marine was pro-babfy due to the early develop­ paragraph of your letter- to us yon: as-It us to withhold our ment of British industry, the- acquisition of' extensive coloniaL posses­ judgment until- skins, and the monopolistia posilion in. culonial trade. FJ;ance appears to be the countr.Y of subventions par excellence, full opportunity given to the members of the board to state the rea althouglr in 1910 its merehant marine was outranked by Great Britain, sons guiding their a{!tion in unanimou&l;y- recommending direct and indi­ the United States, Germany, Norway, and Japan. l:ect aid trkers, and low wages. Sb.e i ha.ndiea.pyed, however, ple, whom you aild we are supposed to represen1l, and not merely b:y. tho lack o.f coal and a. highly developed Ir-on and ~el industry. (An of which the United' States bas in abundance.) from the viewpoint of pri,vate ship operators and builtlers who The Danish merchant marine hru;. riseiL :from 178,000 tons: in 1870 are· so assiduously pressing thls- legislation. tQ allout. 560,000 tons in. 1914. Denmaz:k. has not given much State aid. In view of the fact that you or- somel>ody' fumished m the Norway. .-anks third_ among ~e. merchant shipping ot the- world, being exceeded now oncy- by Britam and tbe Un1~ Sta-tes. I~ rose press copies of the letters written us, and other: Menl.Uer.s, even 3804 CONGRESSIONAL RECORD- HOUSE. l\fARCH 13, before we recei'led them, which have been freely carried and l\fr. BLANTON. This is District day. If the chairman of the eYen editorially di cus ed, we are g'ving our reply to the press. District Committee temporarily yields for the finishing of the Yours, sincerely, Agricultural bill, the inquiry is, Will the District Committee lose EWIN L. DAVIS. · its right to resume District business at the completion of the RUFUS H.A.ruiY. Agricultural bill? PURCHASE OF SEED GRAIN AND SEED FOB F .ABM:ERS IN THE CROP­ The SPEAKER pro tempore. The District Committee will F.All.URE fiEAS. not lose its right to take up District business if recognition is Mr. HAUGEN. Mr. Speaker-- gi-ren by the Chair. The SPEAKER pro tempore. For what purpose does the DEFICIENCIES. gentleman from Iowa rise? Mr. 1\IADDEN. Mr. Speaker, I ask unanimous con ent to l\fr. HAUGEN. I call up from the Speaker's table the bill disagree to the Senate amendments made to the deficiency bill, S. 2897, and move to insist upon the House amendments and H . R. 10663, and send the bill to conference. agree to the cotlference asked for by the Senate. The SPEAKER pro tempore. The gentleman from Illinois The SPEAKER pro tempore. The gentleman from Iowa asks [Mr. MADDEN] asks unanimous con ent to take from the Speak­ to take from the Speaker's table Senate bill 2897, to insist er's table the deficiency appropriation bill, disagree to the Senate upon the House amendments, and agree to the conference asked amendments, and. ask for a conference. The Clerk will report for by the Senate. The Clerk will report the title of the· bill. the bill by title. - The Clerk read as follows : The Clerk read as follows : An act (S. 2897} t() appropriate $5,000,000 for the purchase of seed grain and of eed to be supplied to farmers in the crop-failure areas · A bill (H. R. 10663) making appropriations to upply deficiencie in in the United States, aid amount to be expended nndet· rules and appropriations for the fiscal year ending June 30, 1922, and prior fiscal regulations prescribed by the Secretary of .Agriculture. years, and for other. purposes. The SPEAKER pro tempore. -rs· there objection? The SPEAKER pro tempore. Is there objection? Mr. MAl\TN. As I understand the gentleman made the mo­ l\1r. GARNER. l\fr. Speaker, i:f the gentleman will make the tion, it does not require unanimous consent. It has a privileged required statement, there will be no objection on my part. status. • Otherwise he may consider the objection as made. The SPEAKER pro tempore. It is a Senate bill with House l\Ir. MADDEN. I will make the statement that the minority amendments. The Chair did not understand the gentleman to members have been conferred with. The gentleman from Ten­ make the motion. It is privileged. The gentleman from Iowa nessee [l\1r. BnNs] is perfectly agreeable to having the bill go moves to take from the Speaker's table the bill S. 2897, to conference. to insist upon the amendments thereto, and to agree to the Mr. BLANTON. l\'Ir. Speaker, may I ask the gentleman bow conference asked for by the Senate. many million dollars the enate committee placed on thi bill? l\Ir. l\IANN. Let it be reported, Mr. Speaker. Mr. MADDEN. Twenty-nine million dollars, twenty-seYen The SPEAKER pro tempore. The Clerk ·will report the title millions of which was for payment of illegally collected taxes. of the bill and the amendments. l\Ir. BL~TON. The Senate has placed $29,000,000 on the The title of the bill was again reported and the amendments. bill in addition to what it carried when it left the House. Will l\fr. GARRETT of Tenne see. Will the gentleman yield be­ t11e gentleman give us an opportunity to pass upon tho e in­ fore he pre ses hi motion? creases? l\1r. HAUGEN. Certainly. Mr. MADDEN. I would not want to make any pledge as to l\1r. GARRETT of Tennessee. Mr. Speaker, the parliamentary that. We will bring the conference report to the Hou e. situation, as I understand it, is this, that if the House should l\fr. BLANTON. Of cour e, we can pas upon any of the in­ insist upon it amendments and agree to the conference asked, creases that may have legi lation in them, as a matter of right? then the que tion will be up to the Senate to take what the Mr. :MADDEN. Certainly. Hou e has adopted or leave it. Now, in view of the very The SPEAKER pro tempore. Is there objection? [After a strong majority by which the House passed the bill, as I stated pause.] The Chair hears none. heretofore, I have no desire to contest in a captious way, or The SPEAKER pro tempore appointed the following con­ in any other way, tile adoption of the· House's action. But does ferees: Mr. MADDEN, Mr. CA ~" ON, and Mr. BYRNS of Tennessee. not the gentleman think that, in view of the expression of the W .AB DEP .ART ME NT APPROPRI.A TION S. Honse given the other day, the House is going to be pretty resolute about this matter being confined to $1,000,000 and to Mr. ANTHONY, from the Committee on Appropriations, re­ seed alone? ported the bill (H. R. 10 71; Rept. No. 791) making appro­ l\Ir. HAUGEN. I do. It is hoped to carry out the instruc­ priations for military ancl ·nonmilitary activities of the \Var tions of the House as far as possible. Department for the year ending June 30, 1923, and for other Mr. GARRETT of Tennessee. It seems to me the House purposes, which was read and referred to the Committee of might settle the matter now, once and for all, by insisting on the Whole House on the state of the Union and ordered to be its amendments. · · printed. l\1r. HAUGEN. There are a lot of amendments outside of the l\Ir. SISSON. l\fr. Speaker, I reserve all points of order on reduction to $1,000,000. the bill. l\fr. GARRETT of Tennessee. There are two elements in­ AGRICULTURAL APPROPRI.ATIO "S. volved in the amendments. The other amendments do not 1\fr. FOCHT. l\Ir. Speaker-- ·amount to anything. And. the other is, besides the reduction to The SPEAKER pro tempore. For what purpo e does the $1,000,000, the amendment by which feed was eliminated by gentleman rise? the Hou. e from the bill. Those are the only two substantial l\1r. FOCHT. At the adjournment on Saturday there was things in the bill. under consideration the bill H. R. 10730, ·the Agricultural a·ppro­ The SPE.A..KER pro tempore. The question is on the motion priation bill. I wish to say that I believe the members of the of the gentleman from Iowa [Mr. HAUGEN] to insist upon the Committee on the District of Columbia fully hare the anxiety House amendments and agree to the conference asked by the of the other Members of the House that this legislation be Senate. enacted as speedily as possible. Therefore, whatever rights The question was taken, and the motion was agreed to. we have on the floor on District day we yield to this com­ The SPEAKER pro tempore appointed the following con­ mittee, in order that this legi lation may be exp dited, with ferees; Mr. HAlJGEN, Mr. McLAUGHLIN of Michigan, and Mr. the understanding, however, that we be permitted to take ad­ J.ACOWAY. vantage of the ruling of the Chair and proceed with District AGRICULTURAL APPROPRIATIONS. legislation following the enactment of the Agricultural appro­ Mr. . l\fr. Speaker, I move that the House re­ priation bill. solve itself into the Committee of the Whole House on the state The SPEAKER pro tempore. The gentleman from Minne­ of the Union for the further consideration of the bill H. R. sota. · [1\'Ir. A mERSO "] moves that the House re olve itself into 10730, the Agricultural appropriation bill. • Committee of the Whole Hou e on the state of the Union for The SPEAKER pro tempore. The gentleman from Minnesota the further consideration of the bill H. R. 10730, the Agricul­ moves that the House resolve itself into the Committee of the tural appropriation bill. The quest ion is on agreeing to that ,Whole House on the state of the Union for the further consid­ motion. eration of the bill H. R. 10730. The motion was agreed to. Mr. BLANTON. Mr. Speaker, a point of order. Will the The SPEAKER pro tempore. The gentleman from New York gentleman from Minnesota [Mr. ANDERSON] permit me to pro­ [Mr. Hrcxs] will please resume the chair. pound a parliamentary inquiry1 Accordingly the House re. ·olved itself into Committee of the Mr. ANDERSON. I will. Whole House on the state of the Union for the further con- 1922. CONGRESSIONAL RECORD-HOUSE. 3805

sideration <,>f the bill H. R. )_0730, the Agricultural appropriation What puzzles the Chair is the location in the act of this bill, with :Mr. HICKS in the chair. limitation provision, and also its specific reference to "this The CHAIR~1AN. The House is in Committee of the Whole section." Is it not fa-ir to assume that it is the provisions House on the state of the Union for the further consideration of section 3 that are limited and not the provisions of the of the bill H. R. 10730, which the Clerk will report by title. act? Is it not reasonable to suppose that if it was the inten­ The Clerk read a~ follows : tion to termintl.te the authorization on June 30, 1915, as well as A bill (H. R. 10730) making appropriations for the Department of the appropriations, the limitation would have come after sec­ Agriculture for the fiscal year ending June 30, 1923, and for other tion 7 and would have referred to the act and not to a section pu!'poses. that did not deal with authorization? The Chair answers both The CHAIRMAN. When the committee rose on Saturday questions in the affirmative, and feels that however much the there was a point of order pending, made by the gentleman from intention of Congress may be stressed as to limitation the Texas [Mr. BLANTON], against an item in the bill. If any statute does not so express it. The Chair, feeling that the au­ gentlemen desire further to discuss the point of order, the thority has not been terminated by the proviso of section 3, Chair will hear.· t:J:lem. must hold that the 'item in this bill is in order. To further ifr. TILS01 . 1\lr. Chairman, just a - word on the matter fortify the Chair's opinion, he refers to a ruling of Chairman pending. The point of order was made against a provision of TILSON on May 8, 1920, who was presiding during the con­ this bill on the ground that the so-called Weeks Act expired with sideration of the sundry civil bill. A point of order almost on the final appropriation provided for in that act. It has been all fours with the present objection was overruled by him on claimed in argument that when that act was passed it was at grounds similar to those taken by myself. The Chair therefore least tlle understanding or construction of it at the time that it overrules the point of order. provided for only a specific amount of money anQ. authorized no Mr. MOORE of Virginia. Mr. Chairman, I move to strike out further amount. the last word. The CHAIRMAN . . The gentleman from Virginia moves to What anyone may have understood at that time we can not, strike out tlle last word. of course, consider now. The only thing that the Chair can 1\!r. l\100RE of Virginia. 1\fr. Chairman, this item relates to consider now is what the law itself provides, and what con­ the Forest Service. Something has been said during the con­ struction should be put upon the provisions of the law. The sideration of the bill about the suggested transfer of the Forest third section of the act provides for an appropriation. Then Service from the Department of Agriculture to the Department follows further legislation having no reference to the appro­ of the Interior. It is not my purpose to discuss that question priation in a preceding section but making an authorization upon tl.te merits, but simply to call attention to a misapprehen­ for the purcllase of such lands as have been approved, and so sion that seems to prevail. In that connection I would like to forth. take a minute or two in noticing an editorial that appeared in I call the attention of the Chair to the last paragraph of sec­ the Washington Post of yesterday morning. I quote two or tion 3 of the so-called Weeks Act. After making the appropria­ three sentences from the editorial, as follows: tion referred to, this provision is added : The inquiries made by the commission delegated to- map out a reor• P1·ovided, That the provisions of this section shall el.."Pire by linlita­ ganization of the executive departments are said to have disclosed many tion on the 30th day of June, 1915. glaring inconsistencies and inexcusable sources of extravagance. 'fhe report of the commission is in the bands of President Harding, ana wnen If it had been the intention of Congress to limit the act to published it is expected to create a sensation because of its recom- mendations for sweeping changes. . · the 30th day of June, 1915, it would have added this p'rovision A single example of inconsistent grouping of activities and the evils at the end of the act, and would have stated that the provisions resulting therefrom is furnished by the commission in its discussion of the act shall expire by limitation on that date. But it did of the Forest Service in relation to the Department of the Interior. not do so. Instead of providing that the entire act shall expire * * * • * * * by limitation on a certain date, it is provided in the third section The reorganization commission has recommended that the forests be " that the provisions of this se<:tion shall expire" on that date. administered by the Department of the Interior, just as other lands are administere!!, whether minera11 desert, oil-bearing, agricultural or Thereafter, in section 7 in particular, the act proceeds to au­ Indian lands. The commission ta.&es the position, which seems t~ be thorize the Secretary of Ag1·iculture to purchase in the name of logical and unassailable, that one authority should be exercised ove1• the United States such lands as shall have been approved, and public lands, without regard to the particular nature of the lands. so forth, clearly manifesting the intent of Congress to authorize * * * • • * * Congress will have the reorganization commission's report in due the purchase of such lands as any future Congress might see time, with the President's recommendations thereon. It is to be hoped fit to appropriate money to purchase. It seems to me that we that the people will be given an opportunity to make their land heritage should construe the act in accordance with the clear intent of a\' ailable for proper use. the language, and the language of section 7 clearly authorizes The body that is supposed to have made the report is desc~·ibed the purchase of land. The item against which the point of order as a commission. Of course, the reference is the Joint Commit­ is made carries an appropriation of $50,000 to be expended in tee on Departmental Reorganization created by the last Con­ accordance with the provisions of the so-called Weeks Act, and, gress. The point that I wish to make is that the writer of tlle in my judgment, is not subject to a point of order. editorial fs under a misapprehension in assuming that the joint The CHAIRMAN. The Chair will rule. The Chair is cogni­ committee has made any report whatever relative to the trans­ zant of some difficulties in the path of a clearly defined conclu­ fer of the Forest Service or relative to any other matter that is sion' in reference to this point of order. The Chair in this, as in within its- province. rendering other opinions, has no desire to be arbitrary or to It could not have made any report because it has never taken rule adversely to parliamentary procedure. The Chair pays up any of the many questions that have been talked of as likely great deference to the views of the great parliamental\ian, the to be considered. It could not ha\e ·made any report because gentleman from Illinois [Mr. MANN], whose knowledge of it has never had any meeting to take up and deal with any of procedure and legislative enactments is most profound. Should those numerous questions. As has been said here more than the ruling of the Chair in this case seem to contravene the once, the committee, ha\ing been created by the last Congress, practice of the House, the Chair cheerfully welcomes an selected as its chairman the gentleman appointed by the Presi­ appeal. dent to cooperate in its work, following which action there has The point of. order is that this is an appropriation not author­ been but one meeting of the committee, and that occm-red in ized by law, and so the question narrows down as to whether June, and the only business transacted at that meeting was to the original Weeks Act, so far as authorization for the acqui­ receive a letter from the ·President saying he would be glad sition of these lands is concerned, is operative or whether to submit suggestions to the committee for its consideration, that authority terminated June 30, 1915. and a reply directed to be sent to the President saying that the The ·chair lacks the benefit of having any personal knowl­ committee would be glad to receive and consider his suggestions. edge of the history surrounding the enactment of tb'e original The CHAIRMAN. The time of the gentleman has expired. law, and is devoid of the means of ascertaining the intention Mr. MOORE of Vil'ginia. I ask for three mi1;mtes more. of Congre s in relation thereto. The Chair, while realizing that The CHAIRMAN. Is there objection to the request of the "intention" is entitled to consideration, yet doubts if it can gentleman? be balanced against the expressed provisions of the law. I There was no objection. will refrain from rereading the section of the Weeks Act Mr. MOORE of Virginia. Since that meeting was held in J"une which seems to carry the ~'Crux O'f the matter, except to state not only. has no meeting taken place but the committee has not that it is section 3, dealing with appropriations, that contains been in contact with its chairman. Therefore, I repeat that no the limitation proviso. It states, "Provided, That the pro­ committee report has been formulated and submitted to the vi ·~ons of this section shall expil·e by lilnitation on the 30th President. If there is anything in the nature of a report that day of June, 1915." has been gotten up it is the product of the chairman of the LXII--240 3806 CONGRESSIONAL RECORD-HOUSE. MARCH 13,

l\lr. l\IARTIN. 1\lr. Chairman, I move to strike out the last and I am 'vondeting if this is not to a certain extent duplicating word. This farm at New Iberia, La., is in my district. I the same thing that is being done by the experiment staMons was somewhat suqwise

Mr. 1\IANN. Not more than one-third. Here is a case where, Mr. A:r>.TDERSON. Of course, with a worm as destructive as after having had considerable controversy as to whether we this one it is necessary, I think, to make an investigation in the should furnish a little money to buy seed for people -who could countries in ~hich it exj ts in order that it may be ascertained not cultivate the soil unless we bought the seed, we now propose how it behaves untler different environments and see the ex• to pay men for not cultivating the soil. They can not raise a tent to Which it bas been po sible to grow cotton ·in its presence cotton crop profitably and we pay them on the assrrmption that and the methods that have been taken in other countrie · to they could, and rp ay them if they Will ·not plant cotton. I do not make the growing of cotton possible, 11otwithstanding the pres­ wonder that no one from the cotton States rises to defend the ence of the woTm. If, for instance, the weevil or worm went proposition, though, of course, they will vote for it. outside its present 'territory and into the cotton belt ·proper, Not being able to get a rise, I withdraw the point of order. we would be confronted with the necessity immediately of the [Laughter.] adoption of methods which would enable us to grow cotton Mr. McLAUGHLIN of Michigan. I reserve the point of notwithstanding the presence af the worm. Some preparation order. ought to be made, it seems to me, for .an eventuality of that The CHAIRMAN. The gentleman from l\.fichigan reserves kind. the .point of or

Mr. ANDERSON. The reason is very simple. It was ex­ 1\fr. HAYDEN. 1\fr. Speaker, when the item ·in this bill ap­ pected that this work would be cleaned up this year, or prac­ propriating $25,000 for the examination, appraisal, and survey tically so. It is proceeding under the current law on the basis· of lands in effecting ~xchanges within the national forests was of an expenditure of $13,000. There is no reason in the world undet:. consideration by the Agricultural Subcommittee of the for appropriating more than is used this year. The committee House Committee on Appropriations, Mr. L. :f'. Kneipp, assist­ think thHt $13,000 will be entirely ample for the work. There ant forester, in charge of the lands division of the Forest is not an iten1 in this bill in which we have a greater interest Service, discussed the general policy invol'red in such exchanges. than in this, and if we thought for a moment that $15,000 was His remarks appear on pages 186 to 188 of the hearings held necessary to advance the work on a satisfactory scale we, would on February 1, 1922, and are of particular interest because not have thought of reducing it at . all. But the committee since that time the House has passed the Smoot bill ( S. 490) to thought it ·was absolutely certain on the basis of the progress consolidate national forest lands. On .:larch 10 the Senate con­ that has already been made that $13,000 would carry it on very cm·red in the House amendments to this measure, and it will well next year. probably be approved by the President and become a law within 1\Ir. HAYDEN. Then it is a question of judgment between the near future. The statement is as follows : the committee and those actually engaged in the work of eradi­ Mr. KNEIPP. The privately owned lands within the national forests cating this pest. I would rather give the benefit of the doubt amount to 25,154,414 acres, which is 14 per cent or apnroximately one­ to the Department of Agriculture as to the amount of this ap­ seventh of the gross area of the national forests. These lands are will largely nonagricultural in character, and the major por tion are val­ propriation, and on that basis I hope that my amendment uable for forest purposes only. While they represent in part appropri­ be adopted. ations unde1· the homestead laws, they embrace lands granted to States, The CHAIR.l.\IAN. The question is on agreeing to the amend- railroads, and other grantors, and also lands appropriated under othe1• than the homestead laws. ment offered by the gentleman from Arizona. Mr. ANDERSON. Are they lands-that have been cut over, o1· are t hey The question was talren, and the amendment was rejected. still in timber ? The CHAIRMAN. The Clerk will reacl. Mr. KNEIPP. Both. Some of them contain timber and so me are cut The Clerk read as follows : over. The economic value of these lands is primarily for t he produc­ tion of forests. Some of them are valuable for grazing, but how long CONTROL .AND PREVENTION OF SPREAD OF THE :\IEXICAN BEAN BEETLE. they will be valuable for grazing purposes in continued private owner­ To enable the Secretary of Agriculture to meet the emergency caused ship is problematical. These private holdings are widely intersper ed by the recent intr.oduction and rapid multiplication of the Mexican among Government lands and by their location create a situation which bean beetle in the State of Alabama and other States, and to provide greatly complicates the use, management, and protection of eit her the menns for the study, experimentation in eradication, and for the con­ Government or the privately owned lanc~ s . Effi cient ut ilization, man ­ trol and pre>cntion of the spread of this insect in that State and to agement, or protection is best conducted within, natural units of opera­ other States, in coopera tion with the State of Alabnma and other tion. The timber operator can log most economically and effi ciently States concerned and with individuals affected, in~luding the employ­ when he can take all of the timber within a unit, but with part of t he mrnt of persons a nd means in the city of Washington and elsewhere, land owned by the Government a nd part by private owners this fre­ and-all other necessary expenses, $25,000. - quently is impossible. The same condition p.revails with relation to grazing use. In protection against fire, insect infestations, etc., com­ 1\fr. JONES of Texas. Mr. Chairman, I move to strike out plete coordin~tion is necessary but very frequently _unobtainable because of reluctance on the part of the private owner to participate in t he the last word. work to the same degree as the Government, or, in some cases, because The CHAIRMAN. The gentleman from Texas moves to strike of legal restrictions which pt·eclude governmental action along lines out the last word. proposed by the private owner. To meet this situation, Congress has already passed 14 acts author­ 1\lr. JONES of Texas. l\1r. Qhairman, I do so for the purpose izing exchang('S within specified national forests and 7 acts permitting of asking the chairman of the committee a question with ref­ exchange with specifically named owners of private lands. It bas erence to a provision that has already been passed. On page pending before it a total of 33 bills for the same purpose. Thus far tile F orest Service has consummated 4 exchanges with States involving 69 there is a paragraph authorizing the interchange of appro­ 756,402 acres of base land, and 44 exchanges with private owners in­ priations. I notice that it provides that not to exceed 10 per volving 156,422 acres of base land. At the present time four exchanges cent of the amount in any of these items may be transferred with ,States, embracing a total basQ area of 847,560 acres, are pending. A number of exchanges with individuals have been · carried to a tenta­ from one appropriation to another. At the bottom ·of the tive or preliminary stage, but have not yet reached the forester's paragraph it provides that not more than 10 per cent shall be office. • ' added to any item of appropriation, except in cases of extraor­ In order that the public interest shall be properly safeguarded and that there shall be absolutely no possibility of conditions such as were dinary emergency, and then only on the written order of the created by the old lieu land law, it is necessary that the base lands Secretary of Agriculture. Does not the gentleman think that offer~d under acts of Congress and the lands to be selected in lieu a good deal of leeway is given in the last provision for trans­ thereof shall be carefully examined and appraised by officers of t he Government. The costs of such examination and appraisal range from felTing an appropriation, say one of the big appropriations, 1 cent per acre up to as high as 25 cents per acre in cases where very whereby the department might · be able to transfer enough to extensive timber values are involved. The average cost of examination one of the smaller ones to make it several times as large under and appraisal, however, is from 2 to 4 cents per acre. Considering the extent of the legislation already passed by Congress, that provision there? it may be proper to ask why more extensive exchanges with privat e Mr. ANDERSON. Under the interpretation that the solicitor owners have not been made? One reason has been the inability of the and the comptroller have placed upon this paragraph the trans­ Forest Service to accept the basic land values demanded by the pri-vate owners. The heavy demand for grazing lands during the past ~everal fers apply only to appropriations within a . bureau. There can years bas caused an advance in the price of that type of land which the be no transfer from one bureau to another. The paragraph to Forest Service does not believe to be permanent. We are unable to which the gentleman has referred does give quite a wide lati­ assent to the values of $2.50, $3.50, ot· $4 placed by the owners on the tlide, but I think that is absolutely necessary. As the gentleman property while they on the other band, r efuse to assent to the values of $1.25; or $1.50, or perhaps $0.75, which the Forest Service ~elieves well knows, it is impossible to anticipate the breaking out of to be correct. The result has been a temporary deadlock wh1ch has contagious animal diseases, for instance, and infestations of restricted exchange negotiations. Another development has been t~e insects, which may do an enormous amount of damage if they frankly expressed view of some priv::tte landowners that the publ~ c purposes to which the lands are to be devoted by the GovePnment If are not reached promptly and stamped · out. This provision is acquired, and th~ir adaptability t,o such purposes, warranted the Gov­ jntended to permit the transfer of sums in that way in order ernment in allowmg for them a Wgher value per acre t~an th~~ would command in the open market. Refusal to accede to thrs position has that the emergency represented by an outbreak of that kind also i·etarded exchange n eg-otiations. '.l'b e policy of the F orest Service might be promptly met. in handling exchange work bas been, first, to approve only those ex­ 1\lr. JONES of Texas. Has this provision been carried in changes which are in the public interest. Exchanges for t he . c o ~­ venience or profit of private landowne1·s are not deemed to be w1t bm past years? the purview of the exchange legislation except when also advantageous 1\fr. ANDERSON. It was carried for many years, except to the Government. . . . . last year, when it went out on a point of order. I think it is Of course because of the conditions previously outlined It IS prac­ very important. ticable for both the private landowner and. the Gov er n men ~ t~ benefit mutually from these exchanges without either party sacn.ficmg any Mr. JONES of Texas. Mr. Chairman, I move to withdraw part of its interest. Another point always stressed is that t he yalue the reservation of the point of order. of the base and selected lands shall be determined by careful appra!-Sals, - The CHAIRMAN. The Clerk will read. and that in making such appraisals only the mark ~t .values establ.r bed by transactions between willing purchas~rs and wrllm~ seller s ~Ill b ~ The Clerk read as follows: recognized. In no instance are theoreti.cal comput ~ tions . or. yield

' 1922. CONGRESSIONAL RECORD-HOUSE. 3811 lbcests in northern Idaho, which has passed both Houses in slightly National Ji'orBSt area-s-continued. different form and is now with the conference committee, would permit exchanges aggregating almost half a million acres. Senator BunsuM's bill, S. 920, which has also passed both Houses in slightly difEerent Areas within National Forest bound­ form and is now with the conferees, would authorize exchanges in_ any aries. forest' in New Mexico, and under its provisions a million acrea o~ mo1·e may be offered in exchange. Senator SMoo'l"s bill, S. 490, which State. Forest. has pa sed the Senate and is now before the House. authorizes ex­ National Other changes in any national forest, and thus would embrace the entire Forest land. lands. Total. 25,000,000 acres of privately owned lands, although, of course, much fhat would never be offered to or accepted by the Government for forest pmJ1~se1NnERSON. There is no legislation now which authorizes ex­ Acres. Acres. · Acres. changes in general language? Florida~·············· Florida...•.•...... 317,511 399,290 716,801 Mr. KNEIPP. No, sir. None has been enacted so far. S. 4.90, intro­ duced by Senator SMOOT, is the one now pending. Georgia .•.•••••••••.. Cherokee ...... 61,005 355,251 416,256 The exchange work is important and valuable, first, to the Government Na.ntab:ala ...... 73,000 191,204 264,294 in creating conditions whereby its valuable forest properties can be more economically administered, more efficiently protected, and better· Total·-········ ...... 134,095 546,455 630,550 utilized and to the private owner by making it possible for him to units as embie his private holdings _into susceptible of the best use and Idaho .•••...... Boise ...... ••••..... 1,059, 719 58,395 1,118,114 management. Cache ...... : ...... 493, 2.'34 14., 387 507,621 Of the 25,154,414 acres of land not owned by the United States, Caribou~ ...... 702,52? ~?-,694 740, 2?..J. ' Challis ...... 1, 257,443 11,~ 1,269, 292 it is estimated by the Forest Service that it would be advan­ Clearwater ...... 785,376 122,470 907,846 tageous if about 10,000,000 acres were in Government ownership. Coeur d'Alene ...... 663,531 126,703 790,23( Idaho ...... •.... 1, 879,284 32,613 1, 911,897 The remainder is principally agricultural or mineral land, and Kaniksu ...... 197,476 100,177 297,653 consequently chiefly valuable for development by private enter­ Lemhi ...... 1,095, 938 4,624 1, 100,562 prise. In order to make available information as to the maxi­ Minidoka ...... 508,745 22,375 531,120 Nezperce ...... 1,626,627 39,452 1,666, 079 mum amount of land that might possibly be exchanged under Payette ...... 1, 197, ~11 36,728 1, 2.34, 239 the terms of the Smoot bill, I shall print the following table, com­ Pend Oreille ...... 674,766 199,972 874,738 piled by the engineering branch of the Forest Service and pub­ St. Joe ...... 556 438 315, 550 871,988 Salmon ...... 1,620:387 22,973 1, 64.'3,360 lished on June 30, 1921: Sawtooth ...... 1, 159, 352 18,469 1,177, 821 National Forest a1·eas.. Selway ...... 1, 688,287 113,713 1,802,000 Targhee ...... 984,025 41,715 1,025, 740 Weiser ...... 561, 575 98,047 659,622 .Areas within National Forest bound- mies. TotaL...... 18,712,241 1,417, 906 20, 130,147 State. Forest. National Other Maine .....•.•.•••.... White Mountain ..... 32,H3 83, 415 115,558 Forest land. land!!. Total. Michigan ...... Uichigan ...... 89,466 74,412 163,878

Acres. Acres. Acres. 100 602 121,874 312,476 65,167 133,218 Minnesota .•••...••... Minnesota ...... •.... Alabama ...... Alabama ....•....•.. 198, 385 Superior ...... 857;018 411,520 1,26 ,538 Chugach..•.. _.•..... 102,170 5,232, 20! Alaska ...... •.•... Tota.L ...... 1,047,620 533,3\H 1,E81, 0H Tongass ..•...... 15,449,302...... "'I 31,698 15,481,000 Total...••••.••...... 20,579,336 13~868 20,713,204 Montana .•....•...... Absaroka ...... •... • 841)079 146,631 987,710 Beartooth ...... • 660,68(} 681,930 1 236,665 I ~~~~ 1,33.), 000 Arizona ...... Apache ...... 1 39,735 1,276,400 Beaverhead ...... 1,33?568 Coconino .•...•...... 1, 769,207 1-!6,354 1,915,571 Bitterroot •. ·-...... 1,0! ,420 103;418 1,155, 868 Coronado ...... 1,304.,841 52,987 1,357,828 Blackfeet .•...... 895,238 233, 377 1,128,615 Crook ...... 890,228 22,057 912 285 Cabinet ...... • 829,206 214,018 1, 013, 2?.A Dixie ...... 17,680 -·····-·-··· 17:680 Custer ...... 518,410 78,918 597, 328 Kaibab ...... 752,339 561 752,900 Deerl~e ...... 830,464 133,536 96l,OOO Prescott ...... _•. _.. 1,447,850 196,995 1,644.,845 Flath ...... 1, 707,912 293, 027 2,003, 939 Sitgreaves ....•...... 650,115 243,605 89~, 720 Gal.la.tin ...... 567,614 341, 816 909,430 Tonto ...... 1,988,806 44,954 2,033, 760 Relena...... 680,134 20 ,497 888,631 Tusayan ..•..••...... 1,298,115 178,014 1;476,129 Jefferson...... 1,0-12,884 132,801 1,175,685 Kootenai...... 1,332.,353 284,787 1,617,140 TotaL ...... 11,355,846 925,272 12,281,118 Lewis and Clark...... 810, 891 15,4.69 826,360 Lolo ...... 850,677 330, 34-1 1, 181,01 Arkansas ... ~···· .••.. Arkansas ..... _...... 640,136 318,641 958,777 Madison...... 931,885 103,635 1, 035,520 Ozark .•.....•..•.... 281i.,849 2U, 767 511,616 Missoula...... 1, 030,717 337,155 1,367,872

Total..•...••..• ...... 928,985 • 543,408 1,470,393 Total...... 15,917,132 1 3, 012,138 18,929,270

Oa.liiornia •• _•••••••••• An~eles. .. ······-·· 818,782 239,750 1,058,532 Nebraska ....•..•.... Nebraska ...... 205, 9-U 1 11,864- 217, 80S California ...... _... 817,172 245,400 1,062,572 Cleveland ...... 548,661 264, gss 813,616 Nevada-·-··- ..•••..• Dixie... ·-·- ·-····--· 56,324 7,086 63,410 Crater ...... 47,097 9,925 57,022 Eldorado ...... 400 ...... 40:> Eldorado ...... 553,318 282,482 835,800 Humboldt ...... 1,308,207 160,011 1,468,218 Inyo...... 1, 204,221 45,061 1, 249, 2B2 56,365 2,412 58,m Klamath..•...... 1,524,5U 210,151 1, 734,665 ~roo:.·.::::::::::::: 46!,316 19,2{)3 483,519 Lassen ...... 950,484 370,859 1,321,343 Nevada ...... 1,174,621 22,410 1,197, 051 Modoc .....•...... 1,400,402 445,097 1, 905,499 Tahfie ...... 13,853 40,992 51, 8!5 11iono ...... 785,701 89,160 874,861 Toiyabe ...... 1,871,46! 16,552 1,8 ,016 Plumas ...... 1,144,418 . 2S8,442 1, 432,850

Santa Barbara .•..... 2,021,031 267,727 2, 2-88, 75:8 Total ...... ~ ...... "' ...... 4,945, 550 268,696 5,214, 2!6 Sequoia ...••...•.•.. 1, 879,809 141,790 2~021, 599 Shasta ...... 824,071 761,129 1,585, 200 New Hampshire ..... White Mountain... . . 383,111 1 487,443 870, 55! Sierra ...... 1,493,400 169,160 1,662,560 348,879 52,916 401,795 New Mexico ...... Carson .....••...... 869,320 55,981 925,301 ~~~tW::::::::::: 810,802, 293,610 1,104,412 Coronado ...... 125,5!() 3,612 129,152 Tahoe ...... 531,210 636,327 DatiL ...... ~...... 2,&!2,245 261,475 i,~,~~ Trinity ..•.. ·-······· 1,409,Q10 315,115 }·~~·ffi Gila ...... 11559,530 78, 523 ' J Lincoln ...... 1, 123,975 348, lOi 1:472:079 Total .••••.•••.• 19,172,982 5, 129.,056 24,302,038 Manzano ...... 697,483 230,431 927,919 ·········-···--······- Santa Fe ...... 1,364,585 125, 402 1,489, 987 Colorado ....•.••..•.. Arapaho ...... fl.'M, 485 45,536 680,021 Battlement•...... 653 583 18,655 672,238 Total ....•...... 8,382,683 1 1, 103, 5ZS 9,486, 211 Cochetopa ...... oo7,ooo 23 22D 930,220 Colorado ...... ~641 ,295, 953 1,149,594 :r orth Carolina ...... Cherokee .... _...... 44 851 44 851 Gunnison...... ,409 45,001 951,310 Na.ntahala ...... ·- .. 110,Zl2 2&\,032 396:264 Hayden ...... 66,053 5, 94-7 72,000 Pisgah...... 202,843 003,206 1,1~049 Ho~ Cross ...... 1,1~ 961 89,739 1, 26zt. 700 Unaka.~············· ...... 123,289 1 289 La al ...... ,444 176 ,6~ Leadville ...... 928,9M 127,406 1,056,360 TotaL ...... 313,07.5 1, 4:17, 378 1, 730,453 Montezuma ...... 698,222 113,398 8U,620 Pike...... 1,093,156 162, 955 I,25u, U2 Oklahoma. _ ...... Wichita_ ...... - - ut, 48o 1 1GO 6l,C4D Rio Grande...... 1, 135, 10'7 85,973 1,221,140 Routt ...... •...... 744,856 74,422 819,278· Oregon .••.•.•...... Caseade ...... I, 02Z,.431 72,054. l,W!,485 San !&'\beL ...... 59 ,912 52,288 S.'i1,200 Crater ...... ·-.•.. 804.533 21il, 5!)2 1, 08J, 125 San Juan ...... 1, 240,168 ~,832 1,449,00(} De'Jclmm ...... 1,283,818 180, 032 1,4"i3, &l0 U neompahgre ...... 786,239 81,621 867,860 Fremont...... 4-Q,523 8!3,188 935, 714 White River ...... 845,104 25,766 870,87{) Klamath ...... 8, 7Z3 170 8,893 Mal.heur .. -·- ....- ... l,.G43, 71'1 219, 003 1, 262,8i'O TotaL ...... 1~,290,3.54 1,457, 789 1~748,143 Ochoco ...... , 71. ,02-l l 107,619 82j, &l3 Oregon ...... '" .... 1, 053,100 I 105,509 1, 1~,2U9 3812 CONGRESSIONAL R.ECORD-HOUSE. J\1A.RCH 13,

National Fo1·cst areas-Continued. The CHAIRMAN. The gentleman from Washington asks unanimous consent to extend his remarks as indicated. Is Areas within National Forest bound­ there objection? aries. There was no objection. State. Forest. The QHAIRMAN. The Clerk will read. National Other The Clerk read as follows: Forest land. lands. . Total.

Acres. Acres. Acres. Oregon-Con ...... Santiam ...... 607,097 112,886 719,983 Siskiyou ...... 998,026 257,224 1,255,250 Siuslaw ...... 545,292 290,029 8.36, 321 Umatilla ...... 915,354 111,585 1,026, 939 Umpqua ...... 1, 010, ()3.3 210,758 1, 221,391 Wallowa ...... 957,419 96,118 1, 053,537 Wb1tman ...... 1,313, 738 IG8,454 1, 482,192

13,133,081 2, 293,281

12,443 1 53,507

18,454 1 ns, 762

476,608 125,403 74,091 5,663 526,055 85,355

Utah ...... Ashley ...... Cache ...... Dhie ...... Fillmore ...... Fi~hlake ...... La Sal...... Manti...... Minidoka ...... Powell ...... Sevier ...... Uinta ...... Wasatch .. ~ ......

Washington......

Wyoming ......

The CHAIRMAN. The Clerk will read. The Clerk read as follows: OLYJ\IPIC NATIONAL FOREST. For emergency expenditures inciqent to the disposal of wind-thrown and intermingled or adjoining timber on the Olympic National Forest and for emergency measures necessary to protect from fire the timber on the Olympic National Forest, including the repair and construction of roads, fire lanes, trails, telephone lines, or other means of com­ monica tion, through or along the boundaries of the area or areas of blown-down timber on the north and west sides of said national forest, and !or the employment o! extra guards and patrolmen as may be found necessary by the Secretary of Agriculture, $33,000. Mr. JOHNSON of Washington. l\Ir. Chairman, I ask unani­ mous consent to extend my remarks on forest fires and the For­ est Service ·generally. 1922. CONGRESSIONAL RECORD-HOUSE. 3813

The CHAIRMAN. The Chair is ready to rule unless gentle­ Mr. ANDERSON. I was under a misapprehension. I now men desire to discuss the point of order. understand that the gentleman made his point of order against SEVERAL l\lEMBERS. llule ! the proviso on page 80. I do not concede the point of order The CH.A.IRl\1Al'l". In looking up the law under which the upon that. That is a limitation. There is no provision at all authorization was given to the Government to take over this limiting the salary under the act. market, it sems to the Chair very clear that the authorization Mr. BLANTON. Does the gentleman think tt wise to put exi ts, and that this provision is in order. the limitatfon as high as he has placed it? l\fr. BLANTON. I withdraw the point of order. Mr. ANDERSON. Yes; indeed, I do. Tbe CHAIRMAN. The Chair will read: Mr. BLANTON. If the gentleman thinks that, I withdraw Chapter 171, Forty-first Statutes, page 1442, approved November 4, the point of order. 1921 : "The Secretary of Agriculture is hereby authorized, out of appro­ Mr. MANN. The point of order is not good. I would like priations made by Congress from time to time for that purpose, to employ such persons and to purchase such materials as may be essential to have it ruled upon. to the operation or maintenance of said property and for the proper The CHAIRMAN. The Chair has ruled. The Chair thinks II}anagement and control thereof." the only way IJ.OW to change the situation is by unanimous con­ In view of that law,the Chair overrules the point ~f order. sent. 1\fr·. JOHNSON of Kentucky. l\lr. Chairman, I move to Mr. BL..:..NTON. I ask unanimous consent to withdraw the strike out the last two words. I make the motion for the pur­ point of order. pose of inviting the attention of the chairman of the com­ Mr. MANN. The C'hair ruled upon the admi sion made by mittee to the relative expense of conducting the market as com­ the gentleman from Minnesota unde1; a misapprehension. I do pared with the conducting of it by its now former owners. not want that ruling to stand as the ruling of the Chair. The act of .May 20, 1870, leased this property to a corpora­ The CHAIRMAN. The gentleman from Minnesota conceded tion for 99 years at an annual rental of $25,000. By a piece of the point of order and the Chair ruled. legislative legerdemain the annual rental, in a few months Mr. ANDERSON. I conceded it under a misapprehension. thereafter, was reduced to $20,000 ; and then in a few months The CHAIRMAN. The gentleman from Texas asks unani­ after that it was reduced to $7,500. That rental went for mous consent that the ruling of the Chair be vacated. Is there many years to the District of Columbia and is now going to the objection? District of Columbia. The District of Columbia is getting There was no objection. $7,500 a year as rental of that property. For about 50 years The Clerk read as follows: the United States Government has been contributing dollar MAXIMUM SALARIES. for 'dollar under the half-and-half plan against that $7,500. That hereafter the maximum salary of any scientific investigator, or other emplo~e engaged in scientific work and paid from the general So the United States Government has not only been losing the appropriations of the Department of Agriculture, shall not exceed at rental of the property, but under the half and half act rela­ the rate of $6,500 per annum : Provided, That for. the fiscal year 1923 tive to the District of Columbia, it has been contributing an­ no salary shall l>e paid under this paragraph at a rate per annum in excess of 5,000 except the following: Not more than eight in excess other $7,500. It has appeared heretofore in the inquiries con­ of $5,000 but not in excess of $5,500 each, and not more than three in ducted into this matter that that $7,500 rental was only one­ excess of $5,500 eac:b. tenth of 1 per cent of the value of the property, as fixed by the Mr. MANN. Mr. Chairman, I make a point of order against assessor. Notwithstanding that the United States Govern­ the paragraph. ment was leasing its own property at one-tenth of 1 per cent Mr. BLAl\TTON. I make a point .of order against the para­ of its value, it has been renting surrounding property at I)lany graph. times that rental. In addition to that, while leasing this prop­ l\lr. KINCHELOE. Will the gentleman reserve the point of erty to the Washington Market Co. at $7,500 a year, the Wash­ order? ington l\Iarket Co. in turn has been charging the District ·of Mr. MANN. I will reserve it. Columbia as much as $14,000 a year for the rental of one l\lr. BLANTON. I will reserve the point of order. part of it. l\1r. KINCHELOE. l\Ir. Chairman, I want to make a state­ But there is one thing that might come up between the ·con­ ment in regard to this matter. The question. of raising the ferees to which attention might now be invited, and that is limit of maximum salaries in the Agriculture Department came this, that it appears in the hearings that the capital stock of before the committee and the Secretary of Aglic1}lttire was there tile 'Vashington Market Co. was $1,000,000. A million dollars with several of his men. I think from his statement in a few capital stock was n.uthorized, but the Washington Market Co. of these cases the maximum limit should be raised. But after throughout all these years has issued only $150,000 of the the hearings the Agricultural Committee reported a bill to the capital stock. It has been paying 5 per cent dividend on Honse- $850,000 capital stock that never has been issued. They have Mr. MANN. I have it in my hand. issued $200,000 bonds upon the property, but they need never Mr. KINCHELOE. Specifically stating that 24 of them should have done that if they had only issued $200,000 more of its be raised . . capital stock. Mr. 'MANN. Not in accordance with the paragraph in the I submit these few remarks for the benefit of those who may bill? have the control of the matter in conference, with the view of Mr. KINCHELOE. No. controverting any idea that may be suggested by the other Mr. . Will the gentleman yield? body that this transfer will not be a paying investment to the l\fr. KINCHELOE. Yes. United States Government. Mr. BLACK. All the officials mentioned by the gentlemen are The CHAIRMAN. The time of the gentleman from Ken­ covered by the reclassification bill which the House pa sed tucky has expired. The Clerk will read. some time ago, and I see no reason why the matter is not taken The Clerk read as follows : care of by that bill. EXFORCBME~T OF PACKERS Am> STOCKYARDS ACT. l\1r. KINCHELOE. That question was raised before the com­ To enable the Secretary of Agriculture to carry into effect the provi­ sions of tbe packers and stockyards act, approved August 15, 1921, mittee, but the contention of the Secretary of Agriculture was $410,500: Provided, That no person shall be employed hereunder at a that even if the reclassification bill became a law it could not rate of compensation exceeding $5,000 per annum except one person at become a law within the next calendar year, and for that reason a rate of $6,500 per annum. they were satisfied with the bill which the Agricultural Com­ Mr. BLANTON. Mr. Chairman, I make a point of order mittee reported. against the proviso. There is no authority for raising salaries, Mr. l\1Al'l"N. Is it not a fact that a few years ago the highest or at least one salary to $6,500. pay for this class of employees was $3,000? Mr. ANDERSON. I admit that it is subject to the point of Mr. KINCHELOE. Yes. order if the gentleman from Texas insists upon making it. 1\Ir. MANN. It was increased to $3 ,500, then it was increased The CHAIRMAN. The Chair sustains the point of order. to $4,000, and then on March 9 the Committee on Agriculture Mr. ANDERSON. I offer an amendment in lieu of the reports a bill to the House making the highest salary $6,000. matter stricken out. This bill was reported with the highest salary $6,500. The The CHAIRMAN. The Chair understands the point of order reclassification bill covers all of these case . was made merely against the proviso. Mr. KINCHELOE. I want to say that I am in sympathy 1\fr. BLANTON. Just merely against the proviso. with the point of order and expected to make it myself. But The CHAIRMAN. The gentleman from Minnesota offers an this provision in this bill throws the bars down and gives them amendment, which the Clerk will report. unlimited authority to increase the salaries as they may see Mr. ANDERSON. The gentleman states that his point of fit, and I do not think it should be done. order was simply against the proviso in the item on page 81? Mr. MANN. In the bill that we passed? Mr. BLANTON. No. Merely against the proviso on page 80. Mr. KINCHELOE. No; in this bill here it says in the proviso The CHAIRMAl~. On page 80, beginning with line 14. that it limits it for 1923. 3814 CONGRESSIONAL RECORD-HOUSE. nlARCII 13,

.Mr. 1\IANN. It ma:kes·tlre raise in salary permanent legisla­ ::ftfr. BLANTON. Mr, Chai.rm :rn,. I make the point of ord(:r tim. against the amendment It iS· legislation on an. appTo-priation Mr. KINCHELOE. Absoluteiy. bill. The word " hereafter " makes. it legislation, regardles of Mr. MANN. And the on:ly restrictio-n fs for the next :fiscal anything else. - year. Mr. ANDERSON. Mr. Chairman,. the- IDnennment which I Mr. KINCHELOE. Yes; for the ne-xt fiscal year, and after have offered provides the- same limitation as was made by the that anybody engaged in scientific work can be paid any Committee on Agricultm·e· in the bill which: it has recently re­ amount. ported. I admit, however, that there is no legislation authoriz­ Mr. ?tfANl'L I thought the gentleman was seeking to defend ing it at the present time. that provision in the bill. Too CHAIRMAN. The {)hair sustains the point of order. Mr. KINCHELOE. Oh, no; the reason I asked the gentle­ Tile Clerk concluded the reading of the bill. man to reserve the point of order was to show that the gri­ llr-. ANDERSON. Mr. Chairman I move that the committee cnltural Committee bad reported a bill only giving them the do- now rise and report the bill with the amendments~ with the dght to increase the· salary of 24 employeeS' in scientific work, recommendation that the amendments be agreed to and that while this after the year 1923 will give them blanket authority. the bill as ·amended do paSS'. Mr. CLARKE 0f New York. Was not the bill from the The motion was agreed to. Agricultural Committee the result of a conference• with the Accordingly the committee rose; and Mr. WALSH haVing re­ Secretary of Agriculture? sumed the chair as Speaker pro '. empore, Mr. HicKs, Chairman Mr. KI CHELOE. Yes; and it was ab olutely satisfactory, of the Committee of the ·Whole House on the state of the Union, and -then they come to the subcommittee on appropriations and reported that that committee had had under consideration the ask that after 1923 they have blanket authority to fix salaries. bill H. R. 10730, the Agricultm·al appropriation bill, and had Mr. BLANTON. Of cour e the point of order will base to be dil~eeted him to report the arne back to the House' with sundry sustained and the para:graph go out, but I call attention to the amendments, wi h the recommendation that the amendments fact that only three employees in the limitation are placed on be agreed to and the bill as amended do pass. the· salary mentioned in line !0. MESSAGE FROM THE SENATE. Mr. KINCHELOE. I expected to make the point of order if the gentleman from Illinois did not, but the point I am making A. message from the Senate, by Mr. Craven, its Chief Clerk, is that the Secretary of Agriculture came b-efore the Committee announced that the Senate had insisted upon its amendlllent on Agriculture and agreed to this bill, and then he goes to the to the bill (H. It. 10663) making appropriations to supply de­ s-ubcommittee on appropriations and get bl-anket authority ficiencies in appropriations for tlJe fiscal year ending June 30, after 1923. 1922, and prior fiscal years, and for other purposes, di agreed Mr. ANDERSON. Mr. Chairm-an, in connection with the to by the House of Representatives, had agreed to the con­ action of the ubcommittee, I want to say that this as agreed ference asked by the House on the disagreeing -otes of the upon before the ac-tion of the Committee on Agriculture in two Houses thereon, and bad appomted Mr. W .ABJU:N, Mr. reporting the bill to which the gentleman from Kentucky has CURTIS, and 1\Ir. GLAss as the conferee on the part of the referred. So it could not fairly be said that the department, Senate. after agreeing with the Committee on Agriculture a to a AGIUCULTURAL APPROPRIATION BILL. limitation, came before the subcommittee and asked fo-r a Mr. Al\"DERSON. Mr. Speaker, I move the previous que tion higher limitation. on the bill and all amendments to final passage. Mr. GARNER. May I interrupt the gentleman? The previous question was orde-red. :Mr. AJ\TDERSON. I have not the floor. The SPEAKER puo tempore. Is a separate vote demanded Mr. GARNER. Is it the purpose of the gentleman in the on any amendment?· future in the repods t() point out and suggest legislation n-eces­ Mr. CLARKE of New York Mr. Spefrkell', I demand a sepa­ sary to take care of the departments? I asked the gentleman rate vote on the amendment providing for free seed . from illinois the other day why the committee did not adopt the The SPEAKER pro tempore: The gentleman from New York policy of pointing out to the legislative commi.ttees leglslation demands a separate vote on the amendment for the free dis­ that appeared to the Committee on Appropriations· necessary, in t:tribution of eeds. Is a sepaliate vote demanded om any other? order that they might make apprupriations that appeal to If net, Ore Chair will put the other amendments en gro s. them, and he said that wa going to be the policy in the futu:~:e. The q-uestion is on agreeing tO' the other amendment . I am wondering if the gentleman is in ag1·eement with the chair­ The other amendments wet·e· agreed to. man with reference to that? The PEAKER pro tempor . The Clerk will report the 1\fr. l\1ANN. It is the duty of every legislative committee amendment on which a separate vote is demaodeU. that deals with the matter of appropriations to study the appro­ The Cle1·k read a:s fO'llows: priation bills. Page 26, after line 7, in ert the foliowing· as· a new paragraph: 1\Ir. GARNER. I was merely trying to get the -legislative " Purchase and distribution of valuable seeds : For pUJJcha e, propa­ gation, testing, and congre ion.al distribution of valuable seed ,, bulbs, committee a primer on which to study these matters frorn the trees, shrubs, vines, cuttings, and plants ; alf neces ary office fixtur s Committee on Appropriations. and supplies, fuel, transportn:tion, paper, twine, gum, postaf card , gas, Mr. MANN. Some them do· not need a p-rimer. eleetric cl?rrent, ren.t out ide of the District oil Columbia, o11i:e:ial travel­ ot ing, expenses, and all necessary m:1terial and repairs for pnttin up 1\Ir. ANDERSON. As far as I am concerned, I shall hesitate and distributing ttle saine' ; for repairs and the employment of focal and very much to advise- the Agricultural Committee a-s to what special agents, clerks, assistants, and other labor required, in the city legislation it ought to- pass. of Washillgton and elsewhere, $360,000. And the eeretary of Agri­ culture is hereby directed to expend the said sum, as nearly as prac­ Mr. MANN. Mr. Chairmanr it may be posNible that there ticable, in the purchase, testing, and distribution of such valuable should be some increase in the salaries of the scientists em­ seeds, bulbs, shrubs, vines, cuttings, and' plants, the best he can obtain ployed by the Governm.ent. I do not know who prepared the at public 011 private· sale, a:nd sucb as shall be suitable for the respec­ tive localities to which the same are to be apportioned,. and in which provision in this appropriation bill. As. suggested by the gentle­ same are to be distributed as hereinafte.Jt stated; and such seed so pur­ man from Kentucky [Mr. KINCHELOE], it is very shrewdly pre­ chased sliall include a variety of vegetable and flower seeds uitable for pared. Apparently it puts a limit upon the number of salaries planting and culture in the various sections of the United States: Pro­ that can be paid above $5,000 by providing a lim1t for the next vided, That the Secretary of Agriculture, after due adverti ement and on competitive bids, is authoriz~d to award the contract for the supP'lY· fiscal year. After that it takes off the limit entirely. Of ing of printed packets ami envelopes and the packeting, assembling, and course, some innocent gentleman somewhere innocently thought maiLing of the seeds, bulb , shrubs, vines cuttings, and plants, or any part thereof, fot· a period of not more fhan five years nor le s than that a thing of tbat S()rt could go through the House and nobody one year, if by such action he can best! protect the interests of tl'le ever notice it. He will know better the next time. I make' the United States. An equal proportion of five-s-ixths of all seed , bulbs, point of order. shrubs, vines, cuttings,. and plants shall, upon their ~;equest, after due The CHA.IRMAN. The Chair sustains the point of order. notification by the Secretary of A~rriculture tllat the allotment to their re pective districts iS> refl,dy for distribution, be supplied to Senators, Mr. ANDERSON. M.t'. Chairman, I offe~ the following Representatives, and Delegates in Congres for ullittibution among amendment in lieu of the paragraph stricken out. their constituents, or mailed by the department upon the receipt of The Clerk read as follows : their addressed franks, in packages of such weight a tlle Secretary of Agriculture and the Postmaster GeneraF may jointly determine: Pt·o­ Amendment offered by Mr. .Ar-"DEnsoN: Page 81, at the top of the vided, however, That upon each envelope ov- wrappell' contruning pae:k­ page, insert: ages of seeds the contents thereof shall be ptainly indicated, and the "That hereafter the maximum salary of any scientific investigator Secretary shali not distribute to any Senatorr Repre entative or Dele­ or other employee engaged- in scientific work and paid from the general gate seeds enttrely unfit for the climate and locality he repre ents, appropriations of the ]i)epru'tmcnt of Agriculture shall not exceed at but shall distribute the same so that each· Member may have eed the rate of $6,000 per an.num : Pt·ovided, That no- sa:lary shall be paid of equal value, as near as may. be, and the best adapted to the locality under this paragraph u.t a rate per nJlDum in excess of $4,1)00 ex«ept he represents: Provi.ded also, '.rhat the seeds allotted to Senators and the following: Not more than seven in excess of $"4 500 but not in ex­ Representatives for distribution in the districts embraced within the cess of $5,000 ench : not more than- five in excess of· $5,000 but not in twenty-fift!hl and tlli:rty-fountli pallall~ls of latitude shall be rea<1y for excess of_$5,500 each, and not more than three in excess. oJ $5,500." delivery not later than the 10th day of January; Providea arso, T-hat 1922. CONGRESSIONAL RECORD-HOUSE. 3815 any portion of the allotments to Senators, Representatives, and Dele­ Temple Underhill Webster Yates gates in Congress remaining uncalleu-for on the 1st day of April shall Tilson Vestal Wheeler Young be dish·ibuted by the Secretary of Agriculture, giving preference to Tinkham Volstead White, Me. those persons whose names and addresses have been furnished by Towner Wason Williamson Senators and Representatives in Congress and who have not before Treadway Watson Woodruff during the same leason been supplied by the department : A-nd provided ANSWERED " PRESEN'.r "-2. also, That the Secretary shall report, as provided in this act, the place, Bland, Va. Cockran quantity, and price of seeds purchased, and the date of purchase; but nothing in this paragraph shall be construed to prevent the Secretary NOT VO'l'ING-111. of Agriculture from sending seeds to those who apply for the same. Ansorge Fields Luhring Reavis . And the amount herein appropriated shall not be diverted or used for Bacharach Fish McClintic Reber any other purpose but for the purchase, testing, propagation, and dis· Funk McFadden Riordan tribution of valuable seeds, bulbs, mulberry, and other rare and valuable Blakeney Gallivan McKenzie Rodenberg trees, shrubs, vines, cuttings, and plants." - Bond · Glynn McLaughlin, Nebr.Rose Brinson Goldsborough McLaughlin, Pa. Rosenbloom The SPEAKER pro tempore. The question is on agreeing to Britten Gould Mansfield Rossdale the amendment. Brooks, Pa. Graham, Pa. Merritt Sabath The question was taken, and Mr. CL.ARKE of New York and BurdJck Greene, Mass. Mills Siegel Butler Gt·eene, Vt. Montague Speaks l\1r. JoHNSON of Washington demanded a di\"ision. Chandler, Okla. Hill Montoya Stafford The committee again divided, and there were-ayes 60, Clark, Fla. Himes Moore, Ill. Steenerson Codd Hutchinson Morin Stiness noes 45. Cole, Ohio Jeffers, Ala. Mudd Strong, l'a . . 1\Ir. McARTHUR. Mr. Speaker, I make the point of order Coughlin Johnson, S. Dak. O'Brien Sullivan that there is no quorum present. Crowther Jones, Pa. Ogden Taylor, Colo. The SPEAKER pro tempore. It is clear that there is no Dale · Kahn Oliver TenEyck Deal Kennedy Olpp Upshaw quorum present. The Doorkeeper will close the doors, the Dempsey Kitchin Parrish Vare Sergeant at Arms will notify absentees, and the Clerk will call Denison Knight rerlman Volk the roll. The question is on agreeing to the amendment. Drewry Knutson .Petersen Walters Dunbar Kreider Purnell Ward. N. Y. The question was taken; and there were-yeas 174, nays 141, Edmonds Kunz Radcliffe Williams answered " present " 2, no~ voting 111, as follows : Elliott Lampert Rainey, Ala. Wingo YEAS-174. Ellis Lankford Rainey, Ill. Winslow Fairchild ~e. N.Y. Ramseyer Wise Almon Fordney Lee, Ga. Rouse Fairfield London Ransley Wood, Ind. Appleby Fuller Lehlbach Rucker Fenn Longworth Rayburn Arentz Fulmer Little Sanders, Ind. As well Gahn Logan Sanders, Tex. So the amendment was agreed to. Atkeson Garrett, Tex. Lowrey Sandlin The Clerk announced the following pairs: Bankhead Gensman Lyon Scott, Tenn. Barkley Goodykoontz McCormick Sears On the vote: Jl (• nham Griest McSwain Shelton l\Ir. BROOKS . of Pennsylvania (for) with Mr. MONTAGUE Black Grifli:r. MacGregor Sisson Slemp (against). Bland, Ind. Hadley Maloney l\Ir. LONDON (for) with Mr. MILLS (against). Boies Hammer Mann Smith, Idaho Bowers Hardy, Colo. Martin Smithwick Mr. GALLIVA (for) with Mr. PunNELL (against). Bowling Hardy, Tex. Mead Steagall Mr. O'BRIEN (for) with Mr. STRONG of Pennsylvania (against). Brand Harrison Miller Stedman Haugen Millspaugh Stephens Mr. MANSFIELD (for) with Mr. ELLIOTT (against). Brooks, Ill. Hawley Mondell Stevenson l\1r. UPSHAW (for) with l\Ir. DUNBAR (against). , Tenn. Hays Moores, Ind. Stoll Mr. LANGFORD (for) with Mr. BLAND of Virginia (against). Bulwinkle Herrick Mott Swank Burke Hickey Murphy Sweet Mr. BELL (for) with l\1r. BUTLER (against). Byrns, Tenn. Hogan Newton, Minn. Tague l\Ir. SULLIVAN (for)_with l\Ir. RosE (against). Campbell, Pa. Huddleston Newton, Mo. Taylor, Ark. General pairs : Can trill Hudspeth Nolan Taylor N.J. Carew Hukriede Norton Taylor, Tenn. l\Ir. LAMPERT with l\Ir. RIORDAN. Carter Hull O'Connor Thomas 1\fr. DENISON with l\Ir. TEN EYCK. Classon Humphreys Old.field Thompson Mr. REBER with l\Ir. CLARK of Florida. Clouse Jacoway 0Yerstreet Tillman Collier Jefferis, Nebr. Padgett Timberlake 1\Ir. HIMES with Mr. OLIVER. Collins Johnson, Ky. Park, Ga. Tincher Mr. BACHARACH with l\Ir. WINGO. Colton Johnson, Miss. Patterson, 1\Io. Tyson l\Ir. CoUGHLIN with Mr. BinNsoN. Copley Keller Patterson, N. J. Vaile Crisp Kendall Porter Vinson Mr. ELLis with Mr. -DEAL. Cullen Kincheloe Pou Voigt Mr. MORIN with Mr. WrsE. Davis, Minn. Kindred Pringey Ware, N.C. Mr. WILUAMS with l\1r. RAINEY of Illinois. Davis, Tenn. King Quin Weaver Dominick Kline, Pa. Raker . White, Kans. l\Ir. V ARE with Mr. KITCHIN. Dough ton Kopp Reece Wilson l\fr. KNUTSON with Mr. . FIELDS. Drane Langley Reed, N.Y. Woods, Va. l\Ir. SIEGEL with l\Ir. McCLINTIC. Dupre Lanham Reed, W.Va. Woodyard Dyer Larsen, Ga. Rhodes Wright Mr. WINSLOW with Mr. PARRISH. Echols Lawrence Ricketts Wurzbach Mr. FENN with Mr. RAYBURN. Faust Layton Riddick Wyant l\Ir. GLYNN with l\Ir. SABATH. Favrot Lazaro Roach Zihlman Fisher Lea, Calif. Robertson Mr. GREENE of Massachusetts with l\.Ir. T.A.i"LOR of Colorado. Focht Leatherwood Robsion l\Ir. CHANDLER of Oklahoma with Mr. KuNz. NAY8-141. Mr. KAHN with Mr. DREWRY. Ackerman Connell Hersey Michaelson Mr. GRAHAM of Pennsylvania with l\.Ir. GOLDSBOROUGH. Anderson Connolly, Pa. Hicks Michener Mr. HUTCHINSON with 1\11~. JEI<"'FERS of Alabama. Andrew, Mass. Cooper, Ohio. Hoch Moore, Ohio Andrews, Nebr. Cooper, Wis. Hooker Moore Va. 1\Ir. LUHRING with Mr. RAINEY o'f Alabama. Anthony Crago Husted Morgan The SPEAKER pro tempore. A quorum is present. The Barbour Cramton Ireland Nelson, A. P. Doorkeeper-will open the doors. Beck Curry James Nelson, J. M. Beedy Dallinger .Tohnson, Wash. Osborne The bill was ordered to be engrossed and read the third time, Be"'" Darrow Jones, Tex. Paige wa read the third time, and passed. Bird' Dickinson Kearns Parker, N. J. On motion of Mr. ANDERSON, a motion to reconsider the vote Bixler Dowell Kelley, Mich. -Parker, N.Y. Blanton Driver Kelly, Pa. rarks, Ark. by which the bill was passed was laid on the table. Box Dunn Ketcham Perkins Brennan Evans Kiess .Rankin REG1!LA1'ING THE BUSINESS OF PAW J"BROKERS IN THE DISTRICT OF Browne, Wis. Fess Kinkaid Rogers COLUMBIA . Buchanan Fitzgerald .Kirkpatrick Ryan Burroughs Foster Kissel Sanders, N. Y. l\1r. FOCHT. l\Ir. Speaker, I move that the House now re­ Burtness Frear Kleczka Schall solve itself into the Committee of the Whole Bouse on the state Burton Free Kline, N.Y. Scott, Mich. Byrnes, S. C. Freeman Kraus Shaw of the Union for- the further consideration of the bill (H. R. Cable French Larson, Minn. Shreve 6309), known as the pawnbrokers' bill. Campbell, Kans. Frothingham Lineberger Sinclair The SPEAKER pro tempore. The Clerk will report the bill Cannon Garner Linthicum Sinnott Chalmers Garrett, Tenn. Luce Smith, Mich. l>y title. Chandler, N.Y. Gernerd McArthur Snell The Clerk read as follows : Gilbert McDuffie Snyder Chindblom A bill (H. R. 6309) to regulate pawnbrokers and their business in Christopherson Gorman McLaughlin, Micb.Sproul Clague Graham, Ill. McPherson Strong, Kans. the Distril:t of Columbia. Clarke, N.Y. Green, Iowa Madden Summers, Wash. Cole, Iowa Hawes Magee Sumners, Tex. l\1r. FOCHT. Mr. Speaker, I would like to inquire as to the Connally, Tex. Ilayden Mapes Swing time. I believe there was a division .at the reading of the bill. 3816 CONGRESSIONAL RECORD-HOUSE. ~lARCH 13,

The SPEAKER pro tempore. The gentleman from Pennsyl­ The Citizens' Northwe t Suburban Association. The West End Citizens' .As ociation. vania has consumed 18 minutes in favor of the bill. No -time The Howard Park Citizens' .As ociation. has been consumed in opposition to it. The South Washington Civic Association. Mr. FOCHT. I ju t want to inquire whether the ranking The Capitol Heights Citizens' Association. The Brightwood Citizens' Association. member of the District of Columbia Committee- is going to ask . The Seat Pleasant Citizens' Association. for time-- The Civic Betterment .Association. Mr. BLANTON. I expect to ask for recognition; I did the The Northwe.st Washington Citizens' Association. The Deanwood Citiz.ens' Association. other day, but we can run along under the general rules of the The Cbilum-Castle Woodburn Citizens' Association. House. · The Randle Highlands Citizens' .Association. ask The Prince Georges County Citizens' :Association. 1\ir. BURTON. May. I the gentleman if the gentleman The Southeast Citizens' Association. from Texas desires to be heard in opposition to the bill or in The Southwest Washington Citizens' Association. favor of it? The Hillsdale Citizens' Association. The East End Suburban Citizens' Association. Mr. BL..A.NTON. I am against the bill. Regular order, Mr. The Georgetown Citizens' Association. Speaker. 'Ihe Langdon-Woodridge Citizens' Association. The SPEAKER pro tempore. The regular order is upon the The East Washington Citizens' A ociation. motion of the gentleman from Pennsylvania that the House re­ The National Woman's Party: solve it elf into the Committee of the Whole House on the state Now, that is the source from whence comes the importunity of the Union for the further consideration of the bill (H. R. to restore some method by which more loans can be made. 6309). The rate charged by the different States runs all the way from The question was taken and the motion was agreed to; ac­ 3 per cent to 10 per cent, and in most of the States there is an cordingly the House resolved itself into the Committee of the added fee. Whole House on the state of the Union for the further consid­ Mr. BURTON. That is, per month? eration of the bill (H. R. 6309) with 1\fr. TILsoN in the chair. Mr. FOCHT. Yes; per month. I submit the rates charged The CIL.URUAN. The House is in Committee of the Whole by the different States: Hou e on the State of the Union for the further consideration PAWNBROKING RATRS ALLOWED BY LAW IN THE DI:FFERENT STATES. of the bill (H. R. 6309), which the Clerk will report by title. New York: Three per cent per month ior six months, less than $100; 2 per cent per month thereafter; 2 per cent per month first six months, The Clerk read as follow-s: over $100, or 1 per cent per month thereafter. A bill (H. R. 6309) to regulate pawnbrokers and their busines in All interest must be paid: in full at the expiration of 12 months or the District of Columbia. new ticket i sued, starting: the transaction over again. The CHAIRl\1A.i~. The gentleman from Pennsylvania has 42 minute remaininn loans of ove1· $100, 2 per cent a month and each fraction thereof. The CHAIRMAN. The gentleman has 42 minutes remaining. New Hampshire (Concord) : On loans of $1 or less, 5 cents for the first week, 2 cents for each week thereafter; over $1 to $3, 4 per cent Mr. FOCHT. Mr. Chairman and gentlemen of the committee, for the first week and 2~ per cent each week th~reafter; over $3 to $10, in presenting a bill of this character, bringing it from the com­ 3 per cent for the first week and 2 per cent each week thereafter ; over mittee, there might be such a thing as .an apology offered if it $10 to $25, 2i per cent for the first week, 2 per cent each week there­ after ; over $25 to $50, 2 per C6lt for the first week and 1 per eent each were not for the fact that the system of charging rates of in­ week thereafter; over $50 to $100, H per cent for the first week, 1 Pel' tere t for the u e of money has obtained throughout the hi.story cent each week thereafter; over $100, 1 per cent per week. of the world, even from the time when the Master drove th.e Virginia : 10 per cent per month on loans of 25 or less; 5 per cent per month on loans of over $25 and not more than $100 ; 3 per cent per originators of the scheme out of the temple.. Tlk'l.t seems to have month on loans over $100. met the whole matter, anything aside from what is duly pre­ Rhode Island: 5 per cent per month <>n loans of $o0 Ol' less first six scribed by law, and assumes that dignity of what they call a months; 2i per cent per month on loans of $50 thereafter; 2~ per cent per month on loans of more than 50 .. banking system. Unfortunately in the District of Columbia, the Connecticut: 5 per cent per month on loans up to $15; 3 per cent per loaning of money has descended to a point where it is charac­ month on loans up to $50; 2 per cent ~r month on loans over $50. terized and denominated as a species of graft operated 11nd Vermont: 5 per cent per month up to $50; 3 per cent per month over $50. Law also allows a storage charge, agreement to be made by both conducted by loan sharks, or whatever they are. There are two parties. kinds of systems or two divi.sions of this money-lending busi­ New Mexico: 10 per cent per month. ness throughout the United States. It is recognized and sanc­ Ohio (Cincinnati) : 10 per cent per month on small loans. Texas (El Paso) : 10 per cent per month. tioned by law in every State in the Union. There was at one Indiana: 3~ per cent per month. time a flourishing busines-s in the District of Columbia up until Maine: 3~ per cent per month. February 4, 1913, when there was enacted a law here governing Arizona : 4 per cent per month. Colorado : 3 per cent per month. pawnbrokers and whnt they called loan sharks, holding the Illinois: 3 per cent per month. rate of interest allowable to 1 per cent a month. .A.s a conse­ Montana : 3 per cent per month. quence of that law, I am advised that not one loan under its Oregon : 3 per cent per month, with no charge less than $1. Michigan: 3 per cent per month, with no charge less than 50 cents. restrictive provisions has been made since that time, hence the Delaware : 8 per cent per month and 3 per cent per month extra. demand has come to Congress through the Committee on the storage. District of Columbia, the agency or the medium through which Pennsylvania : 5 per cent per month storage, one-half per cent inter- . est per month. these matters are presented to the Congress, and we find here Maryland: 2i per cent per month. in the report submitted May 18, 1921, an appeal for relief ft·om Georgia: 5 per cent per month, and 25 cents for storage. this 1 per cent which makes it prohibitive to secure loans from Wisconsin (Racine) : General practice is to charge 10 per cent per pawnbrokers. There are at least 30 different as oeiations who month. No law as to what shall be charged. have asked for the essential features of this legislation. as I might say, for instance, in a great State like Ohio they follows: charge 3 per cent a month and fees, making a considerable sum,· The Central Laboz· Union of Washington, D. C. that gives latitude and opportunity for some sharp practice it The Chamber of Commerce of· Washington, D. C. they desire to perpetrate it upon the poor fellow, the victim who The Central Union Mission of Washington, D. C. has to borrow the money. The Private Soldiers and Sailors' Legion. Now, what is known as the Sage Foundation was very much The Benning Citizens' As.soeiati~n. The Central Citizens' .Association. interested originally in mea u:res of this kind, and they thought The Bradbury Heights Citizens' Association. that 1 per cent would be sufficient, but I find here in a ulletin 1922. OONGRESSION AL RECORD-HOUSE. 3817

of the National Federation of Remedial Loan Associations Mr.• REED -of West Virginia. Will the gentlemnn yield where they apJ)eal for rates of intere t and claim that money there? can not be profitably loaned for less than 3 per cent. I find also Mr. FOCHT. Yes. here that in the State of Ohio, in an act, section 6339-3, passed 1\11·. REED of '\Vest ViJrginia. Will the gentleman address in the general a sembly May 14, 1921, and approved June 7, himself to this phase of the subject : There is an abuse in Wash­ 1921, filed in the office of the secretary of state June 8, 1921, ington now existing by the business being can-ied on over the it says: line by a State that charges 10 per cent a month and havino­ No licensee shall charge, receive, or demand in exress of 5 per cent per their agencies in Washington. b month interest on any loans, or discount on any conditional purchase, Mr. FOCHT. They can charge 10 per cent. But in the State up to and including the sum of $25, or in excess of 3 per cent per month on loans or discounts above the sum of $25. the gentleman <:omes from they charge 20 per -cent, and they Now, that leaves the matter with you, my friends, as to the have -charged 30 per cent. The whole thing is an outrage. There amount. It matters not to me at all. I am simply the agent is some sort of a cloak being covered over it to ob cure what is that brings this bill before the House and to present such facts,­ known in Wa ~ington, and better kno\vn by l\fr. JOHNSON than in the brief time that we have here, that we have gathered. myself, because he has dug deeper into the matter, as the loan Mr. JOH TSON of Kentucky. l\Ir. LAMPERT and myself, as a shark. They d~ not want a pawnbroker's bill. They want to subcommittee, spent many weeks gathering information on this go on with the business themselves, in ·some mann-er, with a subject. We have prepared a bill. I wish to ay, my friends, system of notes. I do not kno\v how they do it. They loan the that whatever virtue may be in any uther bill, that really the money, and it is reported before the committee that they o-et as high as 22 instead of 3 per cent. o whole crUK of the mattet is on this question of percentage, out­ l\fr. BLANTON. Mr. Chairman, I rise in opposition to t11e side of this fact: That I wish to state that we have inco~po. bill as a member of the committee. rated in this bi11 (H. R. 6309) a number of features which have not been in any bill that has been in operation in the District Mr. BROWNE of Wisconsin. The gentleman from Pennsyl­ vania introduced a bill, H. R. 5015. Now, that bill had the of Columbia, or that is perhaps either here or in the Senate, and indorsement of the Di trict Commissioners, dicl it not? I would call the attention of those who are interested 'in the 1\fr. FOCHT. I do :not know anything about it. subject-- Mr. BROWNE of Wi consin. I hold in lilY hand a bill (H. R. Mr. JONES of Texas. Will the gentleman yield? 5015) , which was introd ueed by y ou:rself. l\Ir. FOCHT. Just for a question. Mr. FOCHT. Ye ; some time ago. l\Ir. JOI\TES of Texas. I do net know if I understand the bill Mr. BROWNE ~f Wi cousin. Now~ I understand that that thoroughly or not. Doe· section 10 here legalize the rate of bill has the indor ement of the Di trict Commi ioners. · interest of 3 or 2 per cent a year? l\fr. FOCHT. . Yes; if they indorsed that bill they will indorse M:r.. FOCHT. Oh, no. this, because of the added feature of protection to the one who l\1r. JOJ\TES of Texas. I am reading this part: puts u:p the pledge. If interest nnd charges on this loan in excess of the rate of 3 per cent per month up to ·and including $35 or of tbe rate of 2 per cent per 'Mr. BROWNE of W iscon in. I understand tl1at they do not month over $35 tbereof be charged, askeu, or received-- indorse this bill. I understand they -oppose this, but ind-oT e :Mr. FOCHT. Up to $35. that. l\lr. JONES ~f T~as. Three per cent up to $35? Ar. FOCHT. I do not think so. I think this has a univeTsal 1\fr. FOCHT. Yes. indorsement. There might be a thousand people against it Ir. JONES of Te.."ms. Doe the gentleman think it is wi e where th"8re are 250,000 for it. business for Congress to authorize and legalize the charging of 1\'lr. BURTON. Mr. Chairman, will the gentleman yield for a tho.~ rates? further questi~n? l\1r. FOCHT. I condemn all kinds of usury, for my part, The CHAIRMAN. Does the gentleman from Pennsylvania but how are you going to do business? This is the basis on yield to the gentleman f;rom Ohio? which it is done. .Mr . .FOCHT. Certainly. 1\lr. JO~'ES of Texas. B-ut if you enact this law you legal­ l\fr. BURTON. Does this proposed bill repeal the eAisting ize it. law of February, 1913? Ur. FOCHT. You did in your State, and in all States. They 1\Ir. OOCHT. A t-o pawnbrokers only. It has no reference do it in Pennsylvania. It is an evil that we must meet, ro anything but pawnbrokers, separating them from what they but we are O'oing to demand that there be protection. Other­ call tile loan-shark business, a species -of "banld.n.g where they wise there will be no restricti-on or contrel. use notes. This is wh"8re they receive·pled

CLAYTON, DEL., October 29, 19!1. NEw YORK, October !8, 19~1. DsAr. 1\IR. BLANTON : I offer you my congratulations. I regret that DEAn 1\fn. BLANTON: "Tbe malediction of lmaves is the ~lory of an the entire Ilou e is not composed of men of your kind. After reading honest man," and it is, I f<'el sure, a consolatory reflection t o you the matter complained \lf, I showed it to other gentlemen, and not one to know that the treatment ju t handed out to you was in no way of tllem could figure out what was meant by all of the abbredations. merited. . • JAMES S. Conn, 1\1. D. I!J. J. HART . CONGRESSIONAL RECORD-HOUSE. 3819 1922. I

ST. PETERSBURG_. FI..!., FelJnJ.Off1J 1, 1,92!. In the right place. I hope you stay on the job. I hope you go back to your people and upon your record ask a vote of confidence, and I Dun Mn. BLANTO;);: I have read your expurgated rep{)rt. It does have faith enough in the patriotism and d1scriminating judgment of -you cn~dit and condemns the action of Leader Mo-NDELL and the the g_ood people of Texas to believe they will stand behind you. House. C. A. GRAVES, U. D. • Very sincerely, yours, - FilED LAMB. From Ron. Joseph N. Brown, twice governor of Georgia. Now if any colleague objects to this I will eliminate it, but Lom:svrLLE, KY., November 8, 1921.. this 'is from a man who has been twice governor of ~orgia. DEAR MR. BLANTON: The country generally appreciates the sincerity and effectiveness of your efforts. You have for a long time been making This is what he said-and, of course, I offer it with a grain of a bold, hard fight, and I hope you will not be discouraged. salt: WILLIAM BLACK., In my opinion, every Representative and Senator in the U~ited States, President B. F. A very & Sons. with the exception of Representative BLANTO'N, of Texas, IS afraid of the labor unions. HAVRE DE GRACE, 1\ID., Noven~ber 5, 1921. Well I know of some men in here who are not, so the gov­ DEAR MR. HL.!t.t,1'0N: You have made more friends than enemies: There are apparently not many men in Congress who have the nerve ernor ~ade a mistake on that. I know a few men in this House and courage that you have shown. with whom I am intimately acquainted who are not afraid of EDW ABD V. STOCKHAM. them and not afraid of anything else. Do;);NELLsoN, I ow A. DENVER~ COLO., Novetnber 4. 19.U. Congressman CHARLES FUI,LER- CoNGR!ilSSMAN BLANTON : I congratulate you as the only man .in Con­ gress with sand enough to stand up squarely for the people agamst the I will take some of this out, because it may give offense- many •• holdups " in Congress. Bo~NELL. You voted to expel Congressman BLANTON. I recall, howe>er, that you are the mnn who1 when his country was assailed by a savage en~my, sinking our ships and drowning American men, women, and That comes from Iowa. I am not responsible for it. children, voted against America going to ·war. From the distinguished educator, Dr. William Starr Myers, There are those who believe your action was due to a pusillanimous professor of history and politics in Princeton University: knuckling to a disloyal element in your district. No one questions the PRINCETON, N. J., Janua1·y 18, 1922. patriotism of .Congressman BLANTON. I still think you should have resigned in 1914. MY DEAR MR. BL&"'\TO~ : Please accept my sineere than~s for the CoN­ REV. HARRY E. PURINTON, GRESSIONAL RECORDS. They are exactly what I destred lD order to go over the whole case for myself. In reading the acc?unts of your cen­ sure in the newspapers I suspected you had not received a square deal, From Judge Roy McKittrick: and l am now confident of it. SALISBURY, Mo., November 5, 1921. Personally I am not opposed to labor unions, but I do feel that the DEAR MR. BLANTON : I take the liberty of expressing to you my closed shop is not only llll-American but absolutely detrimental to the hearty congratulations for the wonderful fight that you have been mak­ integrity and welfare of this. country and the best interests of labor ing in Congress the last four years for the people of thls Nation. I hope you ·wm continue to block the "pork-barrel " Congressmen. The itself.Permit me to congratulate you on the brave an d pa t rw . ti c thi ng you people understand that the reason certain leaders wanted to throw you have done. . out was to get rid of your interfering with them. The House censured With all good wishes and kindest regards, believe me, yo-u, but the people have not. The people of MissotH'i will not rebuke Very sincerely, yours, WM. STARR MY&RS. you, but approve of your efforts in theil· behalf. ROY MCKITTRICK. SHAWNEE, OKLA. JAcKso:-., Mrss. DEAR MR. BLANTON: The Mississippi employl,ng printers, of which I This is an excerpt from a letter wr-itten to my colleague, am president, heartily indorse your attitude. I congratulate you. Congressman PRINGEY, by one of his constituents. Public sentiment is with you. SHAW!\'EE, OKLA. J. WOFFORD TUCKER. DEAR CON!}RESSMA.N PRINGEY: We think Congressman BLANTON Hi do­ ing the country one of the greatest services that any man has ev.er [From Father George Zurcher, president of the League of Catholic undertaken. Priests, fighting in Washington for Americanism and morality.] NEWS DISPATCH PRINTI~G & AUDIT Co. Congressman COCKRAN denounced the act of Congressman BLANTo~ as " deplorably obscene and unspeakably loathsome." But neither Con­ [From Manufacturers' News.} gressman COCKilAN nor any other Congressnum said aught against men who may be in the habit of uttering, under the nose of the GQvernment, CHICAGO,. Ncn;ember !4, 192L words characterized by Congressman MaNDELL as " unspeakably vile, Quite a change is noticeable in the attitude of some of his colleagues foul filthy, profane, blasphemous, and obscene." Is vile language to toward Representative BLANTO~, of Te:x~s. ~t proved just how far be ignored and condoned as long as it is not made public? Congress­ professional agitators will go to carry then· pomt. man BLA TON, unable to bring the bad behavior of Gover~ent printers Con"'ressman BLANTON certainly was courageous. Neither the threats to the attention of Congress, brought it to the attention of a higher of the"' Gompers, nor the- a,ppeals of £pineless as~ocia tes prevented him authority-the people. Are we to ignore the " horrible stutf " as long from exposing the methods P.ursu~ by .Profe~sw.nal labor leaders to. as it is uttered among men exclusively? If so, we are arrant pharisees tyrannize over better men. IDs attitude 1s begmmng to be understood. or "whited sepulchres." If one Congressman with the help of the Me BLANTON was made to suffer much, bas been abused and perse­ Public Printer succeeded in banishing gambli'ng from the Government cuted; but he has won a great victo.ry for ilidependent labor and printing shops, 434 Congressmen ought to banish from it foul language genuine Americanism. and blasphemy. [From Ridgly Club, Harvard University.] [From the Trenton Typothetae.] Hon. THOYAS L. BLANTON, TRE!\TO:S, N. J. Washington, D. 0. DEAR MR. BLANTON: I am a Republican through and through, but I DEAR SIR: The members of the Ridgly Club, ot Harvard University, would split my ticket to vote for you. My hat is off to you. have instructed me to dispatch to you a note of sympathy and under­ C. W. SCHAEFER, Secretary. standing because of. the recent vote of eensm·e which the House of Representatives deetned necessary to pass upon you. It seems to us HARRISBURG, PA. that this vote was an unprincipled attack upon the position which you DEAR MR. BLANTON : I have carefully read your extended remarks, bad assumed arid upon your own personal character. The vote of for inserting which you were publicly reprimanded, and I feel a sense censure itself, the words of the Speaker of the House, the mysterious of shame tha.t the reprimand should have been administered for bring­ innuendoes of the press have all contributed to obscure the real issue ing to the light the circumstances. and to cast upon you personally the odium which not you but the I write thus- to assure you of the sympathy of one unafraid Ameri­ union printers in the GQvernment Printing Office should bear. can, who happens to represent the printing interests of a large produc­ It is indeed regrettable. that a true conception of this unfortunate tive territory, at an infliction wholly undeserved, and to wish more Incident can not be drilled into the public. In the meantime, we trust power to you. that you will accept our expression of sympathy at this time of de­ J. HORACE MCFARLAND. plorable persecution. Very truly, yours, EDWARD C. KIRKLAND, Secretary. [From editor Hibbing D:!ily News.] HIBBING, MINN.,. Nov ember 24, 1m.. From the distinguished jurist, Bon. Fred Lamb, judge of the D.EAB Mn.. BLA ·To~: You are one of the few men in pub-lic life with twelfth judicial circuit of Missouri : nerve e-nough to blaze the trail to freedom, and you will find that the MY DEAR MR. BLANTON: Having watched your career with some­ great majority of the American people are with you, though for busi­ interest, and I may say admiration, I have studied carefully the record ness and political reasons they will not give you the encouragement which was th.e foundation of this attack upon -you, and assistance your splendid effort deserves. More power to you. Being nccu tomed to weighing matters of thls- kind, I have no hesl­ C. M. ATKINSON. tancy in pronounciD.g the attack upon you as aJl unjustifiable outrage, the like of which finds no precedent in the record of the doings oi our SYRACUSE, N. Y., Nove.mber 25, mt. Congress. DEAR MR. BLANTON : Tbe people of this country are solidly behind This was a vi,le affidavit, but it was a part of your case made against you, "twenty to one," as agam.st the gang who are trying to put you the- union-labor element in the Public Printing_ Qfti_ce, and I am not out of business. You will be 1u Congress many long years after the sure yet that it was not properl~ placed i,n the RECORD. In any event,. Mondell element shall have been utterly forgotten. your good faith in the premises can not be qu.estioned, and if it was: F. H. EBBLING. an erro.t it can furnish no justification for the attempted expulsion or the ~;eprimand that followed. Many of our people who keep in touch, with Congress are of the opinio1;1 that :you have re-ndered the couu-tl'y· [From Salem (Oreg.) J ou.rnal. J invaiuable service in Congress, and we hop.e that yoUJ keep up the fight. Representative BLA. "I:ON has been co.nsistently the champion of tbe Now of all times we need men there with patriotism, brains, and -cour­ open shop and American plan in Government bureaus, and hence has lilll'e to defend the common country. I think you are the right man been a marked man. All the pressure of organizefl labor has been ex-

• 3820 CONGRESSIONAL RECORD-HOUSE. l\f.ARCH 13, erted against him, and the effot·t at expulsion was due to pressure of BLANTON believed that the people should know about it. And why labor lobbyists upon Congress to get rid of a man courageous enough to shouldn't they? Does not the Government Printing Office belong to the expose their methods. people? Are they not entitled to know the conditions there? The tempest lD the teapot would have been no.t so riotous if MARION, OHIO, December 2, 19!1. BLANTON's expose bad not somewhat unsettled ancient customs a.t Washington and thrown the searchlight of public disapproval on some DEAR Mn. BLANTON : I wish to commend you on your fearless stand. Government secrets that had been hidden in the closets these many What this country needs is more men l~ke yourself in Congress, who years. are willing to stand for right and justice regardless. Right and justice are American qualities, and by holding BLANTON CHARLES .B. KING. up to public scorn Congress can not cover up the fact that the Govern­ ment Printing Office at Washington is the "most disgracefully conducted WOLF CREEK, Or.EG., November 5, 1921. department in the whole American Government. BLANTON 1nay be DEAR COI\'GRilSSMA~ Br.A~TO::-i : Millions of people are with you. I able to come back. 11•ish we more Representatives like you in Congress. _ A. W. ZOELLNER. [From the Kansas Official, issue December, 1921, p. 20.] There is one man in the National House of Representati>es at Wash­ [From the Commercial Advertiser.] ington, and the accent should be on man. There are no doubt others, CA:'{TON, N. Y., November 1, 19!1. but 317 utterly failed to assert their manhood when they sat supinely by, heard the masterful answer of Congressman BLAN1'0::-< to his tra­ The condemned affidavit published was ·practically in cryptic lan­ ducers, voted to expel, or evaded a record vote by refusing to an wer the guage A clean-minded woman or child might say there was some pro­ roll call October 27. Gompers and the unions had them "buffaloed." fru'iity in it, but they would never recognize the filth. T~at would The press and the Congressmen gave it oat that Mr. BLANTON had have to be deciphered by the student of filth and obscemty. Who used in his speech exposing the rottenness prevailing in the Govern­ would ever have he::trd a word about it were it not that Congress ment Printing Office under union domination language that was "vile, picke!l it up and went into the scare-head business? foul, filthy, profane, and obscene." The report sent out by Floor Leader BLA 'TON was. up against a lot of people who wanted to "get" him. MoNDELL, and contained in his resolution to expel, was that the objec­ Union labor wanted to "get" him, the Woodmen of the World wanted tionable words were BLANTON's, and the people were led to believe that to " get " him, and many others wanted to " get" him, inclu~ing scores they were his own words, his own sentiments, and that he was not a of Con"Tessmen who were forced to vote yes or no on questions when fit man to occupy a seat on the floor of the House. This was carefully they wished to a.Yoid being put on record. It woul<;f seem that the constructed premeditated, and conceived to mislead not only the Mem­ House of Representatives was in deplorably small busrness. bers of the House, but the public, and to bolster up and curry favor with the head of the l!~ederation of Labor, Samuel Gompers, and bts GRAND RAPIDS, MICH. hencllmen. DEAR MR. BLAKTO::-<: It may intere t you to know that there are a Unafraid and with his conscience and God as his guide, M1·. BLAN­ lot of northern Republicans who agree with you. I applaud your TON, against great odds, manfully -combated this state of things and refused to be influenced or coerced by Gompers, or to permit by silent nerve. BLAINE GAVETT. acquiescence the usurpation of Government control by union labor. Other Congressmen quailed in the presence or this " high and mighty " I have just a few more that I want to read, and I am reading set of bulldozers, but not BLAN1'0N. He was right, he knew be was them only to let you know that the people from one side of the right, and being right he had the "innards" to tell others that they were rabbity. Br...L~TON would not buy his seat in the House at the sac­ United States to the other, Republicans of high tanding in rifice of honor. Our guess is that nobody can buy BLANTON. their party-and it is a great party-do not approve of the con­ It was shown that a union foreman had called one nonunion man a demnation I received. They are a little severe on you. In "black-hearted scab," and threatened, "If the Public Printer and ' BLANTON fooled with them they would have their heads taken off and justice to you I want to say their being severe on you because lose their jobs, as the unions had the greater influence with Congress." of your haying been severe on me is not going to cause me to Instead of joining BLANTON in resenting such insinuations and present­ do you an injustice, and I wish to say that many of you are ing a. red-blooded American front against such u urpation of Govern­ ment authority, Congressmen blanched and shrunk from the warning men of lovable character and disposition, whom I love yet, re­ hand of Gompers. When Gompers demanded the unseating of BLANTON, gardle s of the action that you took against me. I can it and Congressmen took the cue a.nd ought to politely kill the one man that listen to you and discuss matters heart to heart, and I do it bad the nerve to comply with his oath of office, and do so openly. And who is BLANTON? A Texas Democrat, every inch a nran, whose eYery day. There is not a day that passes that I do not it life and standing in the community in which be ilas lived bas been an in friendly relations with men on the floor, men who voted to open book. Starting out at 10 years of age as the principal breadwinner cen ure me, but I say again that I have no malice against of his fanrily, for 49 years he made for himself an enviable name l>y hard knocks and self-denial. On his forty-ninth birthday the vote was them. I clo it simply in behalf and in defense of my good name taken on bis· expulsion. The vote was 204 yeas. One weak sister an­ for which I have fought and builded for 49 years in this swered "present." Since going to Congress from a service of eight country. Now, I will take a few minutes more time to show years on the district bench, Mr. BLANTON has persistently fought the usurpation of Government authority. He nettled the "rabbits" in Con­ You that this sentiment is not from one section, but all over gress by his persistence, and especially when be compelled a roll call the country, from every State, from your constituents as well 126 times Cfll, measures before the House. as mine. [From the editor of the Sedgwick Sun, Colorado.] [From the editotial page of the New Sky Line.] DEAR MR. BLANTO!-i : Thousands of citizens feel as I do, that you are LITTLE ROCK, ARK., No vember 19, 1921. a martyr t<> the cau e of real Americanism. Personally I am a Repub­ Doubtless it failed to penetrate the ivory domes of the Congressmen lican, but that does not kE!ep me from sending you my expression of that if the contents of the affidavit were obscene they were not the sympathy. words of Congressman BLA- TON, but that they did represent what a E. R. KIELGAS. union agitator on the Government pay roll bad during working hours, and in the presence of other workers, hurled at another Government FORT HAMILTON, N. Y., employee. Congre sman BLANTON bas performed a great public service. November 18, 1921. DEAR l\IR. BLANTON: You have made a good, clean, and brave fight again t tremendou <>dds, and should have the support of all decent [From the Freeman, New York, Nov. 9, 1921.] Americans. Frankly we su pect a "plant" against Mr. BLA.NTON, because he has JOHN D. MAHiilR. made himself effectively disliked by several powerful political and quasi­ political interests. The House went inte one of those spa ms of moral­ tty for revenue only in which it often indulges, and the disgusted [From the editor of the Ca.dd<> Herald.] spectator may get what satisfaction is to be bad out of the ncute obser­ CADDO, OKLA., Nove,mber 4, 1921. vation of Reilly de Gourmont, that "when morality triumphs no en!l or DEAR MR. BLANTON: I have for years admired your stand. I have indecencies take place." .ead the matter complained of, and I have seen worse in print circu­ lated through the mail . I do not think the error was yours. I think COLUMBUS, OHIO, November B, 19fH. that it is time that the American people know about the utter in­ DEAR Mn. BLANTON: Inclosed is clipping from the Dispatch. l tolerance practiced. Just want t<> let you know that everybody does wanted you to know the tide bad turned and you were vindicated. The not condemn you. Here's hoping. you continue your fight and win. goody-goody Congressmen will find that they are not sustained in their G. A. CROSSETT. persecution. Continue your work for the people in stopping extrava­ gance. [Fro!Jl the Coconino Sun.] BE J. F. EWDfG. FLAGSTAFF, ARIZ. [From the Columbus (Ohio) Dispatch.] That the Co~GRESSIONAL RECORD is a Sunday-school paper which all The influence which Republican Leader MONDELL is supposed to have the children read is silly rot. BLANTON is a rabid Democrat, but be over Ohio Members of Congress bas been objected to evere strain as wa.s doing the whole people a service. a result of the leader's drastic efforts to force the expulsion of Repre· sentative THOMAS L. BLANTON from the House. A ·number are saying [From Little Rock Daily News.] they are through with Mr. Mo 'DELL's leadership. The dissatisfied ones assert that Mr. Mo~'l>ilLL'S course in the BLAN· NOVEMBER 8, 19_21. TON expulsion affair was punitive in the extreme and was inspired by BLA

• 1922. CONGRESSIONAL RECORD-HOUSE. 3821

[From Republican, Iowa.] " If I could recall my vote I would do so," be said. " I ani very glad the resolution providing for expulsion did not pa~ .". . . DEAR CO!IIGRESSMAN BLANTO~ : My forbears came to America in 1741. Representative JAMES T. BEGG, of the Sandusky dtstnct, IS said to I live in Congressman's GREEN'S district in Iowa and am a lifelo~g feel the same way about i.t. As assistant whip of the. ~ouse be was Republican, yet I notice with the deepest regret and sympathy the hardly in a position to resist pressure from above, but It 1s understood outrageous treatment you have received at the hands of your fellow be bas taken the position that never again will he be controlled Ul a Congressman. similar way against his inclinations. . So~e acted through policy, some through ignorance. and a good • Representatives SPEAKS and RICKETTS were the only two Ohio Mem­ many because they have been infected with the damnable "red germ." bers who broke with the House leader at the time the vote was tak~n. It would give me great plea ure to grasp your hand and indorse your Gen. SPEAKS has stated that he would have voted against expelh~g actions in the strongest terms. BLANTON if be bad been the only one of the 435 Members to do It. G. E. JACK. Gen. SPEAKS believes there is no Member of Congress who leads a cleaner life than BLANTON and that his personal conduct is above· [From the distinguished W. S. McCarthy, of Salt Lake City, Utah.] reproach: The language to which such serious objection was raised was not Mr. BLANTON'S, was not offered with his approval, nor was it so printed AKRON, OHIO, October !8, 1!i21. that anyone who had never heard it co-uld read it understandingly, DEAR CoNGRE!'ISMAN BLANTON : I am not a Democrat, but I hope you and it &eems to me that only by publishing the matter in its entirety will stay in Cong1·ess. The country needs a few more men such as you could he show the deplorable conditions existing in the Government are, who are unafraid. Printing Office. · _ JOHN J. STARR. I think, and my view iS shared by everyone with whom I have dis­ cus~ed the matter, tt>at instead of being censured Mr. BLA~TON is [From resident Farmers & Merchants National Bank.] entJtl~ to !l yote of .thanks. The House, however, saw fit to ignore the v1tal prmc1ple which Mr. BLANTON so courageously upheld and saw October 28, 1921. Los ANGELES, CALIF., fit to drown it in a flood of claptrap oratory. MY DEAR MR. BLANTON: I have always admired you becaus~, after w. s. MCCARTHY. Senator KNUTE KELSO~, you seem to be the only other man ID Con­ gress who dares ay what he thinks. You are rendering a great service to the people of the United States, and I hope you will not falter. [From San Francisco Daily News, Nov. 4, 1921.] - J. A. GRAVES. THO~fAS LI!-!DSAY BLANTON, whose expulsion from Congress was de­ manded by Republican Leader l\IoxnELL, lives up to all Texas traditions WHITE CASTLE, LA., October 28, 1921. as a scrapper. He rushes in where others fear to tread, and because of his sledge-hammer attack, his resourcefulness, and his knowledge of DEAR CONGESSMAN BLANTON: A Frenchman once said in the Assem­ parliamentary law be quite often accomplishes his end. bly: " Socrates wa. in the m.inority.• they poison.ed. him; Jesus. Christ That end, however, is most often trying to def£'at some measure or was in the minority, they crucified H1m." Such will It ever be wtth men move. who attack abuses. LEONCE M. SONIAT. He is concededly the hardest worker in the House.

[From the president of the Erie Railroad Co.] SA~ FRANCISCO, CALIF., November 1, 192J. NEW YORK, November 1, 1921. DEAR CONGRESSJ\IAN BLANTON: I have read the CONGRESSION.U.t CONGRESSMAN BLANTON: You are one and almost the only Member RECORD containing the article complained of, and can not see in what of Congl'ess who hjiS the courage to tell the truth. Every right think­ way C~mgr~ss was justified in censuring you. It looks very much to in.,. force is praying for more power to your elbow. me as If th1s was an underhanded way pursued to revenge itself on you "' F. D. UNDERWOOD. for justifiable criticisms. · This i~ ~o advise you that I am with you heart and soul. I think your position was correct. Although I am a Republican and you are [From secretary of business men's organization.] a J?emocrat, I would support you _for the position of President of the Pno>IDENCE, R. I., October 29, 1921. Umted States for the manly and fearless positions you have taken DEAR JUDGE BLANTO~: I have been following with a great deal of during the last several yE:ars in Congress. interest the recent uproar in Congress, caused by your attempt to put F. c. DREW, before the country a true statement of the conditions as they exist in 523 B"ihUng. the Government Printing Qffice. . . It may be some satisfactiOn to you to know that whatever the opmton MI~XEAPOLIS, MINN., November 8, 19Z1. of yom colleagues in Congress may be, it is perfectly. appare~t to the DEAR Mn. BLANTO~: You were censured, according to thefeudal cus­ people all over the country that you have succeed~d m headmg up a tom of slaying the bearer of barl news. Yet the real offender who condition which, for a number of years, bas been mtolerable. originate!-1 ~e objectionable language, r·etains his position in the Govern­ ment Prmtiilg Office, encouraged to again abuse and villify any non­ [From a leading Republican.] union employee. PHILADELPHlA, PA., December 8, 1921. Mrs. ALICE WHITNEY BunTO~ . Hon. CARL. W. RmDICK, National Rep11b1ica1J Fund, Washington, D. 0. [From a distinguished minister, pastor First Congregational Church.] DEAR MR. RIDDICK : I just received a second appeal from you for LEBAxo~. Mo., October 29, 1921. funds for the national Republican fund. I had laid the first appeal DEAR Co~GRESSMA~ BLANTON : The country needs you more than it on my desk for action, when the Blanton incident occul'l'ed. You seem does the whole bunch against you. Do nqt be discouraged. Your record to support FRA~K w. ~.IO~OELL, accredited floor leader in the House. is a noble one for ·ervice. May God bless you. I am not a Democrat. in his vicious and misleading attack on Ron. 1.'HOllAS L. BLANTON. That does not matter. I am an American. I rejoice in your abilities Now Mr. BLAN'l'O~ has been doing a tremendous amount of public 1 gooa' in combating red, disloyal, and criminal labor unionism (he is and sterling qualities. Sincerely, V. H. RURI~G. not opposeq to respectable labor -qnions), an~ in fearlessly_ cuttin~ out appropriations that have no busmess to be m the unde-rcover posi­ tions in which efforts are made to get them through. MoNDELL's at­ LEWISVILLE, ARK., October 28, 1921. tack was evidently a mere pretext to injure a man who is fighting DmAR MR. BLAN'l'ON: I read in the co~GRESSIONAL RECORD for Oc­ for the public's rights, and it bas utterly disgusted me, as well as tober 22 every word of your report which cau-sed your reprimand. I many other memben; of the party, and expressions of strong disappro­ can not find anything objectionable in it. Our court records contain bation have reached me from influ'ential Republicans in California, the much more obscenity. I commend your course and hope you will never New England States, and many points between. I do not feel, under the circumstances, like subscribing, although I otherwise would have cease your bold and honorable fight. I think that you deserv-e a rneual instead of a reprimand. done s~ F. R. WELSH. · FRANK BRAME.

HASTINGS, NEBR., November 1, 1921. [From a distinguished minister.] DEAR CONGRESSMAN BLANTON : You are 100 per cent man, who APPOMATTOX, VA., October 28, 19'2i. stands true to convictions :regardless of cost. It is easy for a man· MY DmAR CONGRESSMAN BLANTON: As a reader of the CO~GRESSIO~AL to be popular if he will just " fall in with the crowd," but it takes a RECORD, I am familiar with its contents. strong character and personality to stand alone against the crowd and I deeply regret that the rules of the House are such as not to per­ contend for the right, especially when trying to "clean house" in mit a public record of facts. Such things are awful to repeat, but Congress. We want you to know that thousands of people in this sec­ somehow I have a lingering conviction that undP..r such circumstances tion are backing you with their confidence and prayers. a "verbatim" account best serves the ends of justice. Mrs, JOE W. LISMAN, Be assured, dear Congressman that "truth crushed to the earth will rise again," and long after this rs1 forgotten you will be wafted high on the wmgs of your noble struggle for justice. Be assured of my sincere [From a former Congressman.] prayers, sympathy, and respect. BELLEVILLE, lLL., November 9, 1921. W. W. PIPPIN, Jr~ DEAR MR. BLANTON: You have been hounded by hypocrites and phari­ sees, by prudes and snobs, and the scandal to the Nation is not in LANCASTER, OHIO, October 28, 1921. . your utterances, but in the outrageous conduct of your colleagues in DEAR MR. BLAXTON: I am a Republican, but Mr. MONDJJLL'S a<:tion. persecuting you. The biggest farce of the present century, the most laughable comedy, will do neither him nor the Republican Party any good. You have been the most ridiculous · piece of opera bouffe was pulled off when Congress badly treated. I hope you will stay in Congress and continue your fights for the people. · passed a vote of censure on you and Speaker GILLETT pompously ad­ H. FURJ\IISS. ministered tbP. rebuke, which ~· ou have a right to wear as a badge of honor for the rest of your days. · * BROWNING, M,ONT., October, 1921. Accept my handshake and congratulations over the great moral vic­ MY DEAR Mn. BLANTON : Allow me to congratulate you on your cour­ tory which you gained, and I sincerely trust tbat the day will come age in saying what everybody else feels like saying. 1\.lore power to when you will give them the other bal'l'el. FRED J. KERN, your elbow. Rev. JAMES D. GoLD.· · Editor :Ne1os·DemoC'ral,

LXII-241 "3822 00 _TGRESSIO J AL RECORD-HOUSE .

.Goon Il'HUNDER, Mr:-i~., October, 19f1. cited b.y anything .appearing in rt:he · Co,'GRESSLO~AL ..R.Econn. Sp aket DEAR MR. -BLAXTON: llave just r ad your f'U)lendid ..speech. .Mrs. GILLl!:'.rT nncon don Jy made a grim joke uf a erious matter. Walker and I, as .Americans, .wi h to indor-se .your manly ·utterances !I rbave tal::ked ·to • ever.al ,other who read the article, and, like my­ and your tanding alone for the right. QQd .bless you in .daring to self, they feel that you .ha-u been wronged, and :to ·this .extent Congresl! stand alone. . stand rebuk('~. My ·father (a minister) also read the artiale and Rev. C. E. W ALKJlR. ·shRl'e my feeling. ~CL.11UIINC!Il PHILLIPS • • KANSAS CITY, Mo., October .fB, '191H. FORT ILAUDElRD.i'LE, IFLA., November 4, -1921. MY ·DEAR 'Mn. 'BLANTON : I am still your .frland and unshaken b_y .any of the events of the last few days. Don't let this " tempest 'in a teapot " 'DEAR 1\IR. 'BLAN.TON : Your defen e -was a classic. .How 'the .-gangs crush your spirit. . , hate to be exposed. :I thank you for ,publishiiJg the rotten conditioDB The whole episode appears half ludicrous. Who would have thought there. that a "'pious front" by the ·must -saintly gentlemen wlw lha-ve been CAPT. T. H..u.;r.. seeking to '' ou t" you is o.f more importance -than .the actual facts .. aifecting .our .country .and Government? I wonder if the medical books WASHINGTON, October 27, 1921. and .the Holy .Bible will yet have 1:o be .ruled out of the mails. 'DEAR -CONGRHSSM.AN .BLANTON : I borrowed a .CoNGRiilSS10NAL RECORD .Rev. CHAS. T. :AL»XANDER. ana read .your .rema-tks. I can not conceiv.e of .minds being .so warp d as to de ue to expel you for same. The press ha-s given the people a [From Mrs. Mary P. Sutherland, who is personally familiar with Wash­ very different conception of what actually happened. I 'know 'because :ington :affairs.] since reaaing tne 'RECORD I have e~lained the true facts to many. BIG :RAPIDS, MicH., October, 1921. EYery great .man wh~ tries to serve the public .is persecuted. The greater and mOTe powerful you become, the more you must ·expect to be ·DEAR CoNGBJilSSXAN BLANTON : "The CONGlUtSSIONAL REcoRD of Octo­ cruelly censured. I am 'tor you and •v•ish you the greatest success in ber 22 with your speech on the Government Printing .Office is i>efo:r.e your wonderlnl -career. me. Good for yon! Stick to it. Keep up your fight. Not one single DR. THOMAS L. ~ILLI!IR. efficiency case did I ee in 27 mouths' service. I saw over 11,000 a month in wages wasted on one floor in one building because there was no one with any brains ·supervising. 'Ew :Yorur, N. Y., Octobe1· :zs, :19il. Mrs . .MARY .-P . .-8UTH£RLA"ND. DE~ ¥R. 'BLA-'TON: It we only had more Blantons in Congre the peoples mterests would be better served. Continue yom great work 'WIL"Lr&MSBURG, 'KY., October ·29, 19131. against -dishonesty and graft. l.lAR!UN ,GARVEY. ··DEAR "MR. ·BLANTON: 1 commend the spirit .in which y:ou have fought against odds and hQpe that ·much ·for 'the country's weliar~ m~y ·yet 'The CHADR IAN. The tbne of the gentleman from Texas come from it. has expired. J . .E. TERRY, Mr. BLAN':rON. Can I have 10 minutes more? This i all :ALEXANDRIA, MI~N., October, 1921. the defense I have, my good name is involved, and there is but DEAR 'MR. ·BLANTON: You told ·the unvarnished truth. Stick to the little more in conclusion. I a k unanimous con ent that I have convictioru; nf ·your conscience. lliw to .the line. Le.t the chip fly 10 minutes mare. and .hit >where th~y .have the IJlDBt effect. The ·OHAIRl\lA r, "The gentleman ·from 'Texas •asks"'Unani- :J,frs. :B, .J. -BIRCHARD. mous consent to proceed :for 10 minutes. Mr. FOCHT. lUr. Chairman, have I any time remaining? .[From the Buffalo Commercial, Buffalq, N. :Y., O-ct. 28, 1921.] The CHAIRMAN. The gentleman has 23 minute . .Proof that the .oare of unioni m still lives .and aomina.tes nt least a number of .Co.ngr ssmen .and that it .wm stop at nothing in the .fight 1\'Ir. FOCHT. I '.have li tened to the gentleman ·from Texas to retain jt . death .grip upon the tb.l:on.t of a number of important with much interest. I ·would 'like to a k him if he feel after Government departments is contained in the attack recwtly launched all thi , that .he was ,entirely ju tified in putting tho e ·thing ;in upon C<>.qgre man r.rHOMAS L. "BLA"'TON, of Texas, in which the Mem­ ber of Congre hu.d the sheer audacity to propose that BLANTON the -RECORD? should be expelled. 1\lr. BLA!'l"TON. Let me say to the gentleman that·the·clenun­ BLA:-

[Excerpt from Texan's letter in W-ashington Herald, Nov. 1, 1921.] [From :the Hardware World, January, 1922.] Brace up Mr. BLANTON and .hold your head high, the people of Texas ·Th-e Hon. THOMAS L. 'BLANTON, ·Re.Pre entai:ive from Texas, 'has for know yom value ana have not for aken you by any means. Your __past years waged a ·most ccrunrgeous ·war in the Ilou e of =Representative'S eliort in the interest of the people, the integrity with ·which you dis­ against the red and criminal type of labor unionism, which has trie-d charge -the duties of your office. are not unknown to your people. to ·dominate the countu. In doing this he has arou:sed their bitter The courage and strength with which you have !aced ·bitter opposi­ enmity. tion when you knew you were right has won for you i:he undying A ._RIUL CRAMPIO~ OF THE PEOPLE. confidence and appreciation of the people of the Lone Star State. The records show a long, continuous, arduous service by Mr. BLAN.!I'ON in, among other things, watching appropriations. The pages of the CoNGRESSIONAL RECORD are full of points of order uccessfully raised P.ALESTI~E, ILL., October 28, 1921.. by 'Mr. BLANTO'N against such appropriations. MY DEAn CONGRESSM·AN BL:A't."TO : I am on your Side. 'Ever since ow, these ·points of order can only be succes fully raiAea against you ha•e been in Congre s I bave been intensely interested in your items which have no busine s to 'be where they rure, and tb~ vet·y -suc­ activitit>s. While we all abhor tbe obscene and profane it ·is not get­ cess of the e nume-rous points of order attests the correctness of Mr. ting ut-tbe truth to omit it at all times, and I do not believe that there BitANTO• ~s -poffition 1111fl his !lervice to the public in checking waste is much danger that "the pl·urient "'1 t"iosity of children" will be ex- and ertravagance. llut, of course, those Members who are thua 1922. CONGRESSIONAL RECORD-HOUSE. 3823 checked have not a kindly feeling toward the man who upsets their [Samples from 'Texas-from a distinguished Texas lawyer.] plans. LAGRANGE, TEx., March 3, 1921. Mr. BLANTO~ is a consistent champion of the public's interests. He was for eight years a circuit judge in Texas and is an elder in DEAR MR. BLANTON : I received the expunged report. And I started the PreRbyterian Church and a thirty-second degree Scottish Rite Mason to reading it, and it was so fascinating and interesting that I could and a Knight Templar. not lay it down until I had finished. FRANCIS RALSTON WELSH. I want to say this, that all of the outrages that were ever per­ petrated by Congress was when they refused to bear your report. And the out~·age was still greater when they attempted to expel you. • • • [Fl'Qm the editor of the Spectator.] I heartily applaud your courage in making this exposure. PORTLAND, 0REQ., November SO, 19!1. I also feel that all of the Texas Congressmen who voted to censure MY DEAR Co~GRESSMAN BLANTO~ : It is a matter of very sincere re­ yo~ for making this report should be elected to stay at home and to gret that you have been so persistently misrepresented in the press of ret1re to private life at the coming election. I think that any man the country. It was only by accident that I learned the facts in the who seeks to win public favor, either locally or otherwise by tryin"' ca~e of the controversy in Congress. It did not affect the high to <;li~bonor a man :w~o is trying to do what is right should be eternally~ opinion I have of you and the services you are rendering. pohtically, and rellgwusly damned. Stand up for what is right, ev.en Yours, very truly, HuGH HOME. If you have tC? £tand alone. I salute you with esteem and respect. Your fnend, [From Herbert George, president Business Men's Association.] JOHN T. DUNCAN. - DENVER, CoLo., January ~, 1922. [From the Rusk Cberokeean, Nov. 25, 1921.] Mo~DELL's attack on BLA~TO~ fools nobody. The courageous Texan The man who used . the language still holds his job, while the man will recover and return to Congress to torment enemies of good gov­ who cal-led the attenhon of the country to the fact that it was used ernment. came near losing his seat in Congress. '.re~s Congr~ssmen should have been found right on their feet de­ [From Sunday Times, Chattanooga, Tenn., Feb. 20, 1921.] ml;lndmg the discharge of the m~n who used the language just the It has been left for Ron. THO)IAS L. BLANTO~, of the seventeenth :fomil\e !ha~ ¥01'\DELL began h1s attack on BLANTO!'l'. Did they Texas district, to take his seat in the House of Congress and live down p1'ejudice and to be reco~nized as a useful Member, who is doing work that the average Member birks. The man who was fir Nt referred to [From Abilene Daily Reporter, Nov. 24, 1921.] as "Blatant BLANTON 11 is now treated with the greatest consideration. Members who were wont to smile " when BLANTO~ turns loose " now A glowing tribute to Congressman BLANTON's work in the House give the Texas Member rn.pt attention. Ne""spaper men, who once was paid by Judge Fred Cockrell, who introduced the speaker. Jurl"'e scorned upon the Lone Star Congres man and sauntered from the press Cockrell said: "An American citizen in the Government Printing Offi~e gallery when he arose, now give him an audience, because they know appealed to Judge BLANTON for aid. Judge BLANTON took this man's he bas something to say. It can, in fact, be said that Mr. BLANTON affidavit and filed it in the CONGRESSIONAL ·RECORD, and then the is now one of the most useful men of the House. He is what might crash came. They tried to expel him from Congress. I will give my be called a free lance. His main object appears to be to stop ex­ last bit of influence, the last drop of blood in my veins for the west penditures in various departments and force the earning of salaries. Texan, who was brave enough, who was courageous enough to make By indomitable energy and perseverance he is succeeding. He has estab· the fight." This assertion by Judge Cockrell was greeted with pro­ lisbed himself in the House as a man of force and purpose, his purpose longed applause, and cdes of "Hurrah for BLANTON!" went up from being to save the people's money. the audience. Judge Cockrell continued: "This native- Texan bad the nerve to fight them to the last ditch; is a born fighter. He is the most u~eful Member in Congress to-day, and be has stopped tbe [From a distinguished specialist.] expenditure of more of the Government's money than any other man in ERIE, PA., October 28, 1921. Congress." DEAR :MR. BLANTO~ : For some time many of us in this city have A big demonstration lasting for several minutes, in which the ma­ watched and approved of yom course in the House, well knowing the jority of his large audience participated, greeted Congressman BLA!'l'­ rottenness that exists there. We believe it will redound to the benefit TON. There were yells " Hurrah for BLANTON! " and loud and pro­ of the country in general. Many are thoroughly disgusted with tne longed applause. Long before the hour set for Mr. BLANTON to speak present acts of Congress. the district court room was packed to capacity, and when he appeared DR. JNO. A. VAN VALZAH. all aisles were filled . many standing along the walls and out in the ball outside the t·oom. At -the conclusion of his speech hundreds crowded around Congressman BLANTON and assured him of their sup­ SHERIDAN, WYo., Octobet: 28, 1921. port. DEAR MR. BLA!\TO~ : Mr. MoxnELL is a candidate for the Senate, and in this union ridden State be expects to make political capital out of Th'e CHAIRMAN. The time of the gentleman from Texas the incident. Would that we bad more men in the House that bad the bas expired. courage of their conviction . With best wishes fo1· your success. Mr. FOCHT. Ur. Chairman, I yield 10 minutes to the gen­ DR. FRA~K CARLL. tleman from Wyoming [Mr. l\1o DELL]. :Mr. MONDELL. Mr. Chairman, the extraordinary exhibition [Excerpts from Wall Street Journal, New York, Oct. 31, 1921.] we have just witnessed, the letters that we have beard read, Representative BLA~To~ performed a public service which will be illustrate more than anything else could the enormity of the nullified if labor unionism bas its way. • • • The men who cen­ sl!l'ed him always suffer from cold feet where the sacr~d labo.r union offense against this House and against decency con'nnittecl by is concerned. • • • Unless Members of Congress have shut their the gentleman from 'rexas [Mr. BLANTON], and for which he eyes and stuffed their ears they saw and beard these things. But the received the censure of the House by unanimous vote. His people did not know of them, and would not but for the disclosure by Mr. BLANTO:'II. An arou ed public opinion should now administer a offen e was so awful, so unspeakable, so unprintable, that the rebuke to our union-scared Congress, and tell it that there is no room people can not be informed of the details. The people who have in any Government department for an on-American organization setting written these letters could not be informed of the exact char­ itself above the law. · acter of his offense without some one sending them the objec~ tionable matter; in other words, without the ·commission of a [From the Right Rev. Archimandrite Patrick J. Grattan Mythen, D. D., New York, chairman committee of English-Speaking lodges, universal crime that would send one to tl1e penitentiary. What he had con"'re;;s of F. and A. Masons.] printed in the CONGRESSIONAL RECORD for men, women, and As a priest and prelate charged with the care of souls and with children to read was so unspeakably vile that except through power of judgment over other priests, may I be permitted to say to you the commission of a crime in mailing it or tran. porting it or that you have now a splendid opportunity of manifesting to the world your true spirit. You must now ri e above the adversity in such manly of a grievous offense against decency in telling it could these fashion that those who condemned you will have to admit that their people know all its vile, nasty, frightful character. The only censure should have been directed at the sin. * • • You have way that anyone .can know just what he did, other than through paid a public price for us all, if the use of indecent language is to be properly punished. receiving the printed page in violation of the law, is for some one to tell them, and no man of decency and self-respect would NEw YORK, N. Y., October 81, 1921. want to repeat it. [Applause on the Republican side.] And so DEAR MR. BLANTO:.l' : f have been a close follower of your deeds since be bas, be says, received commendatory letters, no doubt some T(>xas sent you to Washington, and have learned to admire you very of them from honest people, well-intentioned people, in the mucb. Your pa t ,reputation is uch that each knock you now receive is indeed a boost to you among tho e who know. I am for you first, main from people who see red, people who are prejudiced last, and always, and believe all Texans are with you. against union labor and again ·t labor organizations, and so MELVIN PRENTIC'E. misinformed as to believe that the gentleman from Texas bas influence as against these organizations or with regard to any­ PRICE, UTAH, October 29, 1f121. thing else. DEAR CONGRESSUAN BL.\1'\TON: I have just read the speech for which Hailing him as a champion of their jaundiced and prejudiced you were censured. I congratulate you for the fight you are making for the people. Your fight must ultimately win. Keep the good work opposition to organized labor, and believing, imagining-which going. The people a1·e behind you. no one here does-that he has some little influence as against J. W. HAMMOND. those organizations, wholly uninformed as to the exact character of the offense, because there is no way of learning of it except COLUMBUS, N. MEx., October SO, 1!121. ·by some one either violating the law or all the canons of de­ DEAR Mt;. BLANTO~ : I have beard many complimentary remarks upon yom valiant stand in the face of overwhelming odds. We believe your cency, they write him these letters. I venture this assertion, be­ efforts will win in tb.e end. Here's hoping you will keep on undismayed cause I have confidence in the American people-! believe that the good fight you have begun on graft and treasury looting. We are in the main they are clean-minded; that they hate obscenity­ still behind you and wishing you luck. W. C. FRANKLIN, ! venture the assertion that few, if any, of those commendatory Oashier First National Bank. letters would have been written if the individuals who wrote 3824 CONGRESSIONAL RECORD-HOUSE. ~lARCH 13,

them could have understood the vileness of the affidavit the borrower should be taken into account, and, unless there is a gentleman from Texas placed in the REcoRD. It was so vile limit upon the rate which can be charged, it is within the power that in my opinion, no really clean-minded woman and few of one who has money to exact a compensation which is alto­ clean-minded men could have fully understood the depth of the gether unreasonable. And so it may be called the settled Ameri­ filth and the vileness it contained. [Applause on the Republican can doctrine that usury laws shall prevail. The rates fixed side.] are five, six, seven, eight, and so forth, as general rates, with Tl:J2 vote to expel ''as just a trifle less than two-third of the auth.ority sometimes for a higher rate, if agreed upon by the member hip of this House, but the vote under which the Speaker parties to the contract. There is a great variety of regulations administered the censure and condemnation of the House was in the different States of this country. unanimous. Therefore, if the Congress is to be condemned for Now, I do not favor this bill, 1\Ir. Chairman. The solu­ what it did. the condemnation rests upon us all. All of the tion of this perplexing que tion as to loans by pa' nbrokers a s:.:mlts that have been made against the honor and the dignity and loans in small amounts with uncertain ecurity, it seems of thi body, all of the offenses that have been committed against to me, can be more :readily reached by an amendment of the House and it good name since the day of its organization, the existing law. The existing law came into effect on the 4th all rolled into one, would not equal the enormity of the offense of February, 1913, limiting interest upon loans of less than $200 . of the gentleman from Texas. And yet the very unspeakable without pledged security and loans made by pawnbrokers to 1 character, the very vilene s of the offense, in a measure protects per cent per month. That rate was advocated by per ons with him. [Applause.] the very best of humanitarian intentions but without any ade­ The CHAIRMA..J.~. The time of the gentleman from Wyoming quate comprehension of conditions as between the borrower and has expired. the lender. Attention was called'at the time to the fact the law 1\Ir. GARRETT of Tennessee. 1\fr. Chairman, will the gentle­ would not be effective, and the very strong statement bas been man yield me two or three mii:mtes? Unles he i willing to do made that not a single loan has been made under the law of that, I shall ask recognition in my own right. February, 1913, at 1 per cent of interest per month. Now the Mr. FOCHT. I yield five minutes to the gentleman from Commissioners of the District of Columbia, the chambe~· of Tenne ee. commerce, the board of trade have requested an amendment of l\lr. GARRETT of Tennessee. l\lr. Chairman, I had hoped that law, only changing a. few lines to make it read interest that the regrettable incident which has been discussed here at 2 per cent per month instead of 1 per cent per month. Two this afternoon would never ari e again in the House. [Ap­ per cent is a rate below that in "£ogne in most of the States. plau e.] What the House did, it did, whether deliberately or I think across the river in Virginia it is 10 per cent per month in an hour of hy teria-of course, each man who voted will on smaller loans, and the ordinary rate in a number of States have to answer for himself-but since it ha arisen again this is 3 per c~t. I do not believe it is necessary to make the rate afternoon it is in my mind to say something that I haYe very so bigh as that. There are a couple of objections to our pass­ frequently thought of since the occurrence. I have never even ing any law fixing a rate higher than 2 per cent. In the first made an inquiry privately about the matter, but I would like place, this Cong~·e in legislating for the Di trict of Columbia to know-and I wonder if any gentleman here can tell me­ has a responsibility for pa sing laws which may be accepted as whether the employee in the Printing Office who used the a model for legislation elsewhere. We ought not, I think to Jamruage contained in that affidavit, for the insertion of which pass. a bill which shall be accepted in the States as a sanction in the RECORD the gentleman from Texas was cen ured upon for so high a rate as 3 per cent. Then there are a great many a motion made by myself, is still in the employ of the Govern­ borrowers here employed in the department who have a ment? regular alary, so that they can readily meet their obligations 1\fr. COOPER of Wiscon in. Mr. Chairman, will the gentle­ and there is not the risk that tl1ere would be in a great indus~ man yield? trial community, where men are ·frequently thrown out of em­ 1\Ir. GARRETT of Tenne ee. Yes. plo:rment. 1\fr. COOPER of Wi cousin. I can not speak as a matter of I remember some years ago a letter carrier was discharged pel""Onal inve tigation, but I wa informeu by a gentleman in my own State because be did not pay his debt . The rule ' who ought to know that this employee bas not been for some that persons in the GoYernment service must meet their finan­ time at the Government Printing Office. cial obligations was strictly enforced. So 2 per cent it seems to l\lr. GARRETT of Tennes ee. I imply wanted to say thi , me is as high a rate as should be fixed here in the District. that if, as many of us thought, 1\lr. BLANTON de erved censure Now, the~·e is one very vital objection to this bill as pre ented by for inserting the affidavit containing his language in the RECORD, the committee. It applies only to the pawnbrokers. W11y, I ask, surely the man who u ed such language ought not to be per­ should it not apply to loans that are made in the e smaller mitted to remain in the Government service. [Applause.] I amounts where there is no ecurity? Is not there an element hope it is true, as the aentleman from Wisconsin understands of absurdity almost in saying that when a pledge is given and it to be, that he ha been separated from the service. security is lodged with the lender there can be charo-ed 2 per 1\Jr. UNDERHILL. Mr. Chairman, as a member of the com­ cent, and when there is entire absence of any security the mittee, I ask for recognition in oppo ition to the bill. lender can only charge 1 per cent? A great va1iety of persons The CHAIRl\1AJ.~. The gentleman from Massachusetts is would be able to obtain loans from friends or from organiza­ reco"nized for one hour. tions which might be established, something similar to the Mr. UNDERHILL. l\1r. Chairman, I yield uch time to the l\Iorris Bank or 'Morris plan, without offering any ecurity. gentleman from Ohio as he may desire. This sy tern will certainly prove ineffectiYe if you limit these l\1r. BURTON. l\lr. Chairman, this bill has to do with the sma.llei' loans to 1 per cent. general question of interest and specifically refers to loans of Mr. CID:NDBLOl\1. Will the gentleman yield for a que tion? small amounts, where, presumably, the security is somewhat Mr. BURTON. Yes. unce1·tain. There are many strong arguments again ·t usury l\1r. CHINDBLO~L Does the Government recognize the as­ law . The school of Bentham and of Mill maintains that interest signment of salary? to be charged for the u e of money is determined by just the l\1r. BURTON. I do not think so; but each department per­ same principles as the prices of commoditie , and that thl'ee con­ haps has a rule for itself. trolling factor will determine tlle- rate of interest, namely, the Mr. CHINDBLOll. My understanding is that the Govern­ supply available for inve tment, the trouble involved in making ment will not recognize any assignment of salary. That being contracts between creditor and debtor, and, third, the risk in­ so, how a1·e we going to provide for loans for borrowers except vol\ell. The lawmaker of England accepted these ideas and upon a pawn or pledge for security? abolished usury laws. Some of our own State have abolished 1\Ir. BURTON. There are many loans made on the pet·sonal u ury laws, though I think most, if not all, have restored them. security of the borrower. At one time there wa no usury law in the Di trict of Columbia. Mr. CHINDBLOM. Certainly, but I mean security to the The American idea in regard to interest is that usury laws lender? serve two useful purpo es, one, that they restrain from specu­ Mr. BUR~ON. 'Vell, the lender, of cour e, must take his lath·e and injudicious- enterprise. If a man contemplates an chances. I am credibly informed there are per ons or organiza­ undertaking that is especially risky and desires to borrow tions ready to go into the busine s here of making loans at 2 money, he would be refused by the bank or tlle lender, because per cent outside the pawnbroker business, providing they are the person to whom the application is made can not afford to authorized. They feel that they can not do busine s profitably tllke the risk at the ordinary rates of interest, and thus if a at 1 per cent and could do busine s profitably at 2 per cent. limit is fixed on rates of intere t that clas of undertakings. 1\Ir. CHINDBL0:\1. Does the gentleman think that the lend­ which result in di aster will be prevented. The other reason, ers of money would lend only upon the personal security of the which applies in this bill here, is that the n~essities of the borrower? .. 1922. CONGRESSIONAL REOORD-HOUBE.

:Mr. BURTON. Yes; and if there is any difference, the one Mr. Chairman, I ask unanimous consent to insert in my re­ who loans only on the personal security of the borrower should ·marks the full text of these documents, including a memoran­ ha ye the higher rate. dum on the pawnbrokers' bill. l\Ir. CHI1'JDBLOM. He takes a bigger risk. The CHAIRMAN. tTh~ gentleman from Ohio asks unani­ 1\Ir. BURTON. Under this bill the lender without security mous consent to extend his remarks in the RECORD by the in~er­ would have to pay 1 per cent, and .you permit the borrower, who tion of the documents indicated. Is there objection? bas diamonds and other valuable security, to pay 2 per cent. There was no objection. l\Ir. CHII'.l)BL0::\1. I presume the gentleman can not find Following are the documents referred to: anything in this bill whlch at all affects the lending of money Memorandum as to pending small loan legislation in the District. upon personal credit only? CITIZENS' COMMITTEE 0~ REMEDIAL LOAN LAW, Mr. BURTON. No. The gentleman from Pennsylvania Washington, D. C., March 10, 1M2. The Citizens' Committee on Remedial Loan Law urges that Congress [Mr. FocHT] responded. to a question I asked, that this bill did do not pass the "pawnbrokers' bill,'' H. R. 6309-S. 2260, for the fol­ not repeal the act of February 4, 1913, which authorized loaning lowin~ r~asons: on mere naked notes at 1 per cent. 1. The District now has a pawnbrokers' law which provides for ~he Mr. FOCHT. I will say that the gentlemen who are advo­ regulation of pawnbrokers and their business, with ample provisions as to licenses and the protection of borrowers, which has proved to be a cates of having this measure apply to the bare note without wise law. pleclge have argued, and you will find it in the hearings a.t great 2. Any loan law which does not provide for those who need to length, that 1 per cent is all they need, and that even 1 per cent borrow small sums on notes as well as on pledges is entirely inadequate. 3. The limitation of the rate allowed, to 1 per cent per month, is would be all that a pawnbroker would need, but the pawll­ the only rea on why loans of both kinds are not being made under broker makes the contention that he needs more and we are the existing law of I.;'ebruary 4, 1913,. discussing the contention of the pawnbroker rather than the 4. An increase in tha rate to 2 per cent per month, as originally a ked for by the Citizens' Committee and by the District Commissioners man that is satisfied. Thr..t is the answer to that. in their bill! H. R. 5015, will be sufficient to establish the business in 1\lr. BURTON. I am very well satisfied that both of them both small oans and pawnbrokers' loans, and to succe sfully meet .all are wrong. One reason why the pawnbrokers expect a higher demands of thlB character. , 5. The "pawnbrokers' bill," H. R. 6R09, will afford no relief to the rate of interest is that it is a phase of occupation or business class of persons, probably larger in Washington than i.n other cities, that i~ in bad odor in the community. There are a number of who need small loans, but have no pledges to put up. instances where we are paying higher prices becan e of the 6. The existing law has been sustained by se1reral dc..·d i: ~ n<:; in the Court of Appeals and two in the Supreme Conrt of the United ~ ; ~n tes disrepute that attaches to the person with whom we deal. one of which declared it to be a pawnbrokers' Jaw. ' While there is a certain amount of difficulty in keeping watches It has been so effeetively enforced by the District Commissioners and things of that kind, the more adequate security more than that it has closed up all the offices of illegal money lenders in the District. makes up for the diffe1ence. 7. Congre s is therefore earnestly urged to pass the bill introduced l\lr. LONDON. Has the gentleman given any attention to by the commissioners, H. R. 5015, increasing the rate in the present the question of municipal institutions attend:ng to the needs law to 2 per cent per month. 8. The "pawnbrokers' bill," H. R. 6309, repeals the existing law. anti of those poor deYils who are obliged to borrow money? as it would be a new law and ~akes no pTovision for loans except on :Mr. BURTON. I haYe. I will say to the gentleman from pledges it would permit the return of the illegal money lenders whom New York that I do not believe in it at all. It is impossible to the commissioners have driven out. ' It would be a decided mistake to pass such a new law to take the e tablisb a municipal loan office without putting it into politics, place of the one which has been so effective in stopping all illegal and the managers will make loans where tlley think they will busines , and which can be made fully effective for legitimate loans obtain votes. 1\laybe the gentleman from New York may have by restoring the rate to 2 per cent per month in the pre ent law, as asked for by the commis ioners. some .arguments in favor of municipal loan offices. 9. The District Commissioners, the Board of Trade, the Federation 1\1r. LONDON. In the District of Columbia it can not be a of Citizens' A sociations, and the Citizens' Committee have all definitely question of votes. They are -voteless here. And then I '"oulu disapproyed of the "pawnbrokers' bill" after careful consideration, and Congress is again urged to pass the commissioners' bill, H. R. like to sa\e the soul of the pawnbroker. I think that is one of 5015, which is indor ed also by the chamber of commerce. the most contemptible of professions. I would simply like to nespectfully sullmitted. put him out of existence. Charles S. Shreve, William J. Eynon, John Van Seha.icl<, jr., Mrs. Archillald Hopkins, Evelyn Wainwright, George Mr. BURTON. The gentleman has an easy task in that. S. Wilson, Corcoran Thom, William F. Gude, William 1\lr. FOCHT. Permit me to ask the gentleman a question. H. Baldwin, H. C. Gauss, John Joy Edson, P. H. ·Mar­ lie speaks of the pawnbroker. I have no brief for him. I have shall, Evan H. Tuclrer, Walter S. Ufford. never pa wnecl anything, and I hope that I never will bave tQ do so, but I would like to know where he stands in more degTada­ Memorandum on the pending pawnbrokers' .bill (ll. R. 6309) as com­ tion and shame than the Shylock that will stand .behind the pared with the commissioners' bill (H. R. 5015), which amends the existing law. counter and take from a clerk $100 when he loaned him only The rate of 3 per cent would cover the great bulk of pawnbrokers' $50? loans, which are ordinarily less than $35, and putting two rates into Mr. LONDON. And ron might go further, to the ba,nkers i he !Jill renders it liable to evasion. The language at the upper part of page 5, which is intended to pro­ who rob th€ farmers or Jhe bunch of financiers that held up the tect the pawnbroker-not the borrower-as to the 3 per cent rate, is United State:s and compelled them to put up the interest on the confusing. No one can tell its exact meaning in relation to the whole bonds. law until it is intet·preted by the com:ts, and it might be construed to l\fr. BURTON. It seems that we art:! getting a little too far nullify the penalties laid down in the law. A new L.'lW to p rovide for ihe pawnbrokers' business is not necessary. afield here. ?!Ir. DYER in isted on talting lbe pawnbrokers in undel' the present law The CHAIRMAN. The time of the gentleman bas expired. because the Di trict committee considered the 3 pet· cent per month :Mr. BURTOX I would like 10 minutes more. that they weN! then getting exorbitant. Mr. FOCHT voted for the bill in this form as well as for the rate of 1 per cent, which is all that Mr. LO_ rDON. The gentleman mentioned an institution, I prevents pawnbrokers' loans undet· the present law. lJelieYe, which he called the 1\lorris plan bank. I believe my To make a separate provision for pawnbrokers, while the impossible attention was called to it several rears ago. How does that rate in the existing Jaw prevents loans on other ecurity, W{)Uld he to give pawnbrokers a monopoly of the small loan business in the District. institution work? It is a sort of a charitable institution, is Any such monopoly is objectionable. it not? · A separate law for pawnbrokers is not needed. Laws passed in ::\Ir. BURTON. No; it is not a charitable institution. It Maine and in Indiana in 1917, which cover other loans as well as pawnbrokers' loans, have been found satisfactory. There bas been no takes deposits and makes loans. They, in large measure, make complaint of the operation of the District law, except as to the rate. their loans to persons who can not obtain money at an ordinary In the exi tiug law Congress very wisely charged the District Com­ bank. They usually r quire two indorsers as security, and I missioners with the responsibility or its enforcement and of making aU rules and regulations nece!'YBary for the conduct of the business, which am told that their losses are not large. expre sly covered pawnbrokers' loans as well as other small loan·. Mr. LONDON. An() they lend with oF without interest? The commissioners made the e regulations, which are still in force. 1\lr. BURTON. .As I understand it, more than the usual in­ No complaint bas been made of them, and we feel that it is undesintble for Congre s to enact the commissioners' rules into a law. terest, o1·dinarily. The Di trict Commissioners are now charged by Congt·ess with the .Mr. LONDON. I thought the interest was nominal. responsibilitY of making and enforcing regulations for the erection of J\1.r. BURTON. The interest bas been placed larger than in buildings, the motor traffic, and other rules and regulations even of more importance than the making of small loans and pawnbrokers' loam~. the ordinary banlc I will answer further the que tion of the The laws of 1917 in Maine and Indiana do not contain detailed regu­ gentleman from New York by saying that I do not believe in lations as to pawnbrokers' loans. These are made by the officialv in municipalities O'oing into the business of loaning money under charge in each State, and they work sati~factorily . If for any reason, however, it seem wise for Congr~s to enact the any circumstances. regulations into law, instead of having the comclissioners make them, I wish to present a memorandum as to pending small-loan the regulations should be incorporated in the existing law, which covers legislation i~ t1.1e District of Columbia, prepared by the citizens' pawnllroker , and not in a new law proposed. It i felt that more flffective and b('tter results are secured wG.ere committee on remedial loan law, with· a supplement. These the commissione-rs are given the authority, as in the present iaw, for state the case very strongly against this bill and in favor of making regulations :~s to details than when they are ~cted into law, nnotber. as has been proved in the past. 3826 CONGRESSIONAL . RECORD-HOUSE. 1\l.A.RCH 13,

The statement that the oppo ition to the pawnbrokers' bill comes· from bankers who wish to make small loans at higher rates of interest The CHAIRMAN. The gentleman from Ohio is recogbizell is not correct. No banker would be willing to accept such loans, which for five minutes more. _ could be made only by a company which took out a license under the law 1\fr. BURTON. Now, there is one provision in tbe oloke a license. with it a provision for interest, does it not? In ection 7 a penalty for the violation of the law is imposed. 1\lr. B RTOX Yes; for intere t all the while. The gentle­ Section 8 provides that no nttorney's fee shall be chal"ged at man lmows enough about business to know that if the interest more than 10 per cent of the rtmount found due. Section 10 is was su pended, eYery one of the borrowers would wait until the not vital. "Nothing containell in this act shall be held-to ap­ end of the ~·ear. The interest goes on at the rate fixed. ply to the legitimate busine: of national banks." I do not see Mr. LOl\TDON. Three per cent a month? any need for that word "legitimate" being inserted there. I 1\lr. BURTOK Yes; and then, again, the borrower is com­ do not belieYe any bank woule scrupulous in dealing with its citi­ ber · of the United States Supreme Court; Willirun M. EvaPts .of zens as it deman& one citizen shall be in dealing- with his fellow New York, subsequently Secretary of State, and counsel for the man~ The (!ase as presen.ted i as follows: There were four d11l'er.ent Unite<.l State in the Geneva. arbitration on. the Alabama clajms.; acts of: Congress levying a tax upon raw cotton. One was the act- of .July 1. 1862", which levied a. tax of one-half of" 1· cent a poun.d. Will'iam l\1. Sharkey, for~ruer chief justice ot th'e' Stam of l\lis­ 'fhe next aet was the ~t of March 7, 1864j which levied a. tux Q! sir ippi; John G. Carli le, afterwards Speaker of the_House oi 2 cents. per pound. The third wa& the act of July 13~ !866, wbich Repre ntat:ive ~ H. Garland subseqwmtJ..y Attorn~y levJ.Pd tax of 3 cents per pound, m1d tfie .lal:'t was the act of March 2, 1867, which: l~vied a tax. o.f: 2U c~nts. per pound". On the 3d• dn:y. et General in the Clev-elanm proper ~~r;~~~·.:::::::::::::::::: :::::::::::: ..... i,'425... :i· .. "2:i,' ~35 .'Gi ..... ~~ .·.~~--~~ for the payment of said tax at places different from that of the pro­ Total...... ' ..... 351,311.48 1,208,412. 53 1;'772,983.48 18,409,65L.9:> duction of said cotton: A 11d provided further, That all cotton owned and held by any manufacturer of cotton fabrics on the 1st day of Octo­ ber, 1862, and prior thereto, shall be exempt from the tax hereby im­ Statement showing internal-revenue tax rectipls from raw coUnn. posed." (12 Stat. . L., 465.) [Act of Mar. 7, 1864.], Fiscal year ending June 3:}-- " From and after the passage of this act, in lieu of the duties pro­ vided in the act referred to in the first ection of this act, there shall State. Total. be levied, collected, and paid upon all cotton produced or sold and re­ 1867 1863 moved for con umption, and upon which no duty has been levied, paid, or collected, a duty of 2 cent per pound : and such duty shall be and remain a lien thereon untH said duty shall have been paid, in the pos­ Alabama...... S3, 049, 868. 01 $.3, 604, 58-3. 8-1 $10, 388,072. 10 session of any PN ·on whomsoever. And further, if any person or per­ Arkansas...... 1,641,:142.22 711,222. :i7 2,555,63 .4'1 son , corporation. or association of persons, remove, carry, or transport California...... 284. 08 ...... 430. 04 the same, or procure any other party or parties ·to remove or transprt Conneeticnt...... 65.67 ...... 193.64 the same from the place of its production, with the intent to evade the duty thereon, or to defraud the Government, before said duty shall Florida ...... : 499,645.07 . 321,811.67 918,944.9 Georgia...... 3, 2 ~. 276.36 5,059. 274.24 11,897,094. 9. have been paid, such per on or persons, corporation or association of per­ illinois...... 76,013.72 34,697.85 379,144.42 sons, shall forfeit and pay to the United State double the amount of Indiana...... 14, 202. 8J 15, 351. 19 92, 727. '1:!. said duty, to be r ecovered in any court of competent juri diction: Pt·o­ Iowa...... 27 t·ided. That all cotton old by or on account of the Government of the Kansas...... 32.17 ...... 286. L5 United States ball be free and exempt from duty at th!' time of and Kentucky...... 149, 905. 16 102, 383. 24 553, 327. 4.i after the sale thereof, and the same shall be marked free, and the Loui~iaua ...... 2,971,70.19 I,n7,569.L7 10,098, 50L.03 purchaser furnished with such a bill of sale a shall c1early and ac­ Maryland...... 4, 424. 48 il9, 424. 7-J 51,349. 52 curately describe the same, which shall be deemed and taken to be a permit authorizing the sale or removal thereof." (13 Stat. L., 15.) [Act of July 13, 1866.] ~~is~~-~~;:·:::·:·::::::::::::::::: :::::: ~~:~~~:~: I ::::: :~~:~~:~: r: :::::: ~: ~~~: ~ "There shall be paid by the producer, owner, or hol!lel', upon all ~f'Issis sippi...... 4, 464, 664. 40 I :3, 521, 702. 26 1 8, 742, 995. 9;l cott.:>n pro!luce!l within tbe United States, and upon which no tax bas been -levied, paid, or collected, a tax of 3 cents per pound. as hereinafter provided * * * and such tax :-:ball be and remain a lit> n thereon, in ~~J~~~-:-~: :::::::::::::::::::::: :::::: ~~: ~~~: ~~: ::::: :~: ~:~ :~~: I ::::::~~~:~~~-:~~ pos e~· ion of any per on whomsoever, from the time when this law tnkcs effect. ot· uch cotton is produced. as aforesaid, until the same shall have been paid." (14 Stat. L., 98.) srg~;t·~-~::::::::::::_:: t ::::::;;i~:~: :::::::::::::::1::::::;;~:;; [Act of l\Iar. 2, 1867.] NewYork...... 112, 570. 54 125,602. 64 867, 9-1:?.6 "On and after the 1st day of September, 1867, a tax of 2~ cents per North Carolina...... 860, 70!. 55 SS7, 341.75 1, 959, 7v4. 87 pound only shall be levied, collected, and paid on anr cotton produced Ohio...... 85,34.3.()) 115,190.48 447,127.12 within the United States." (14 Stat. L., 471.) Oregon ...... [Act of Feb. 3, 1868.] Penusyh·ania...... 146.03 9,352.14 78, 531i.OJ Rhode Island...... 2, 4~~- 7J "A1l cotton grown in the United States after the year 1867 shall be South Carolina ...... '...... 1, 429,281.10 2, 011,199.39 4, 172, 420.1;i exempt from internal tax; and cotton imported from foreign counh·ies Tennes ee...... l , 929, 301.72 2, 429, 49-!. 12 7, 7J . 430. 1L on and after November 1, 1868, shall be exempted from duty." (15 Texas...... 2, 7 , 307. 31 1, 326, 569. 7o 5, 502, 4fll. 24 Stat. L., 34. ) Utah...... • ...... 389. 6! 647. 74 1, 375. 34 When the taxe!'l of 1 02 and of 1864 were levied the country was in Vermont...... 168, 263.29 the throes of civil war and there may be something in the idea some­ Virginia...... 299,147.63 330,579. 45 657,5 . 58 times advanced that the ex igencies of war demanded and justified the setting at naught of statutory _laws and co nstitut~onal prov~sions. We uo not subscribe to that doctrme, because we believe that m a repub­ ~~L~;Th~_~i~::::::::::::::::::::: ::::::::::::::::,:::::.::::::::::: :::::::::::::::: lican government such as ours there can arise no. circu~stances, there can exist no conditions, there can be no emergencies, which would jus­ 'l'otal...... 23, 769, 07 . &J I 22, 500, 947. 771 68, 072, 3S: . 99 tify the -National Legislature in vio~ating the solemnly ena~ted. provi­ sions of the organic law. However, if there should be,..anythmg m that contention it mu t be rememberd that the act of 18o6 and the act of By exhaustive research we · have been able to find only one ca e and 1867 were both passed in a time of profound peace and, the~efore, can that was brought to test the ~alidity of the act of .July 13, 1 66. The not in any wise be regarded as war measures, and the fact IS that the facts of that case are as follows : On the second Monday in June, 1 \37, great bulk of the taxes levied and collected on raw cotton came from William M. Farrington begun an action in law in the court of Memphi ·, the acts of 1866 and of 1867, under w bich, respectivel.Y, were levied and Tenn., against Rolfe S. Saunders, a collector of internal revenue, for collected a tax of 3 and 2.§ cents per pound. In order that the House damages for the seizure of 14 bales of cotton which had b en nsse . ed may get a clear idea of the amounts collected in the different years from by an internal-revenue a ses or for taxes amounting to $2,005.74. The the different States in pursuance of these acts of Congress we submit ca e was removed to the United States circuit court for the sixth cir­ herewith a tabulated statement of such amounts as furnished by the cuit and that conrt decided the ca e in favor of Saunder , and there­ Secretary of the Treasury. fore in favor of the constitutionality of the act which had been directly attacked. In due time Farrington appealed the case to the Supreme Statement shotving internal-revenue taa: receipts from t·aw cotton. Court on Decemb r 6, 1867, and the judgment of the court below was [See act of July 1, 1862, 12 Stat. L., p. 485.1 affirmed by the Supreme Court becau e it was a divided court, there being only 8 justices who beard the case, and they stood 4 in favor of affirming the judgment and 4 in favor of reversing it. This took plnce Fiscal years ending June 30- on February 20, 1871. 'Ibe record of this case can only. be fo und in one volume and that is a volume known as "Records of Brtef ," YOlume State. 216. The case in the Supreme Court was never reported, and nothing 1863 1864: 1865 1866 of the ca e can be found except the agreed tatement of facts and copies of the pleadings and briefs of coun el. It will be noticed that the. judgment was affirmed solely because of a divided comt. The facts .Alabama ...... $3,733,620.25 in the case as stated were agreed upon and filed in the circuit court at Arkansas...... 203,~~:~ the September term, 1867, and were as follows : . "The plaintiff and defendant have agreed that the above cause now pending in the Circuit Court of the United State for the district1 of west Tennessee, . hall be tried by the court without the intervention ~~~~:':i~~~ :::: :~:~~: ::::•i, ~ :::: :•i·'~: :::::~:~::::: ··;:~r::~ of a jury, upon the following facts, which are submitted ~nd agreed Tilinois...... 53,3 1. 71 35,515.69 65,802.79 113,732.66 upon by both parties, to wit : Indiana...... 8, 999.90 1, O.U. 60 703.30 52,428.40 " 1. That on the 26th day of June, 1867, the plaintiff, William M. Farrington, was the holder and owner, in ·his own right of 148 bales ~;:s~--~~~:: ~~:~~: ::~:::::: ::: :::::::~: ...... '.~ ...... i~i.'34' ..... "io~~64 of cotton of the net weight of 66,85 pounds. That said cotton was Kentucky ...... 12,779.67 83,050.15 83,6o8.34 121,550.89 the growth of and produc d within the United States. " 2. Louisiana ...... 19, 920. 93 4361044.52 593,10 . 02 4,300,150.17 That no internal revenue or other tax had been levied, paid, or Maryland...... 1,867.66 139.91 1,168.65 4,324.03 collected upon said cotton. :M~ac~m~tts...... 4,412.79 6,419.2! 127.00 28,~75.4.6 " 3. That on the said 26th day of June, 1867 H. F . Cooper, assistant MisslSSl:ppl...... 756, 29. 27 United States asse sor for the eighth district of the State of Tennessee, Missoun ...... 69,493.12 39,009.76 73,603.00 247,289.14 within which said district said cotton then was, acting under tbe pro­ New Jersey...... 500. 00 ...... visions of the act of Congress of the United State , approved July 13, NewYork ...... 102,041.83 24,836.56 10,334.04 492,557.07 1866, assessed a tax of 3 cents per pounu upon said cotton, making North Carolina ...... :...... 211,658. 57 in the aggregate the sum of 2,005.74, and returned aid assessm\:'nt on that day into the office of the defendant, who is the United States Ohio...... 70,896.24 941 08f!.59 39,918.92 ~·~-~ Pennsylvarua...... 5, 060.89 57, 89:>. 38 • • . • . . . .. • . . . • , . revenue collector for said di trict. . 1922. CON.GRESSION AL RECORD-HOUSE. 3829

•q. 'fbat the plaintiff on the same day protested a~ainst said ~ssess~ JUDGMENT. ment for the reason that said assessment was without authortty of "Upon the foregoing case agreed Judge Trigg rendered judgment as law 'sai<.l act of Congress of the 1~th of July, 1866, being contrary to follows: the ' provisions of the Constitution of the United States of America "And upon consideration of the same the court is of the opinion that and voirl. . the said act of Congress of the 13th of July, 1866, imposing an internal­ "5. 'fhat on the 27th day of Ju~e, 1867, the defendant, who 1s t~e revenue tax of 3 cents per pound upon cotton groVI"n and produced legally authorized United States ID~er!lal-r~ven"!le .collector for sa~d· within the nited States is constitutional and valid and that the law district the said cotton being then within said d1stnct, demanded said of the case upon the facts agreed is with the defendant. It is there­ tax of 3 cents per pound on said cotton •. aJ?lounting in the aggregate to fore considered by the court that the defendant go hence and recover the said sum of $2.005.74. from the plamhff. . . of the plaintiff, and T. A. Nelson, his security therefor, the costs of " 6. That the plaintiff then an,d there protested ~gamst said t~x, and this suit, and that execution issue. . protested against the defendants demand, and obJected to paymg the "In the Supreme Court of the United States briefs were filed by P. Rame for the reasons assigned in his protest against the assessment of Phillips, W. L. Sharkey, Albert Pike, James Hughes, Robertso~ Topp, ~aiel tax, and was removing said cotton from said distri<;t. . J. A. Campbell, Robert W. Johnson, and B. R. Curtis, for Farrington, "7. That the defendant tnen and there, on the ~ay afack to him, which the defendant refused. several States which may be inrludeil within this Union, according to ·• 13. 'rhat the amount in conh·oversy in this cause is more than their reSJ)ective numbers, which shall be determined by adding to the $2,000. whole number of free persons, including those bound to service for a ·• 14. That the foll0wing tabulat· statement shows the growth and term· of years, and excluding Indians not taxed, three-fifths of all other produetion of cotton within the United States from the year 1820-21 persons." (Art. 1, sec. 2, clause 3.) to t he year 1866-67, inclusive. in bales: The fourteenth ammdment modified this provision so that the whole 1 20-2L______430,000 1844:-45 ______2,394, 503 numb~>r ot persons in each State should be counted, In~ns not taxed 1821-22______45j, 000 1843-46 ______2, 100,537 excluded. · 1R2 2- ~3------495,000 1846-47 ______1, 778,651 "2. The Congress shall have power to lay and collect taxes, duti<'s, 182:J-24______509, 000 1847-48 ______2, 347, 634 imposts, and excises, to pay the de~ts anti provirtc> for the .com~on de­ 182~-2G------569, 000 1 48-49 ______2, 728, 296 fense and general welfare of the Umted States; but all duties, Imposts, 1 2;~26______720,000 1849-30 ______2, 096 706 and Px:cises shall be uniform throughout the United States." (Art. 1, 182G-2/______957,281 1850-51 ______2,345:257 sec. 8, clause 1.) 1 27-28______727,593 1851-52 ______3, 015,029 "3. No capitation or other direct tax shall be laid, unless in propor­ 18~ S-2n______870,215 1852-53 ______3, 262,882 tion to the census or enumeration hereinbefore directed to be taken." 1 2V-30______976, 84j 1833-54 ______2,939,027 (Art. 1, sec. 9, clause 4.) 18~0-3 1______1, 0~8. 848 1 . Q!-55 ______2, 8.47, 339 "4. No tax or duty shall be laid on articles exported from any State." 1 31-32______987,417 18 0~-56~------3. 537,845 (Art. 1, sec. 9, clause 5.) 18~2-33 ______1,070, 438 1856-57 ______2.9~9 , 519 In the light of these constitutional provisions, we desire to call attPn­ 1R :J3-~ ~------1~ ~~~· ~~~ 1 8~t58-----.------3, 1!5, 962 tion to the objections which lie to the levy and collection of all these 1834-.J.L------1, -·l , .., _ , 1 .J, 5 9 ______3, 8v1, 481 taxes FiL·st, we insist that each and every one of the acts refen('d to 1 33-36 ______1, 3GO. 725 1 8~9-60 ______4, 6G9, 770 levied a direct tax upon raw cotton which \\'US violative of that provi­ 1 R6-37 ______1.432. 930 1860-61 ______3, 656,086 sion of the Constitution which prohibits the levy of a direct tax, ex­ 1S:n-3 ------1, 801,497 18G1-62 (eRtimated) ___ 1, 000,000 cept it be done by the rule of apportionment. That C011gre s has the 1838- 39 ______1, 300, 532 1862-63 (estimated) ___ 1, 000, 000 power to levy direct taxes is not now and never has been questioner1 1839-40------2, 177,83~ 1863-64 (est~ated)___ 800,000 since the Constitution itself was adopted. The Constitution says, in 1840-41 ______1, n34,94o 1804-65 (estimated)___ 500,000 Article I, section 2. clause 3, that "Representati~es and dire~t taxes 1841-42 ______1, 6R4,945 18G~-G6 ______2,151,043 shall be apportioned among the several States whiCh may be mcluckd 1842-43 ______2, 378,875 1866-67 ______1, 860,000 within this Union, according to their respective numbers." 1843-44 ______2,030,409 Again in Article I, section 9, clause 4, we have this provision : " ~o capitation or other direct tax shall be levied unless in proportion to '' That of the above animal yield and product, three-fourths to five­ the census or enumeration hereinbefore directed to be taken." We re­ sixths of the number of bales have been annuaJly exported from the spectfully submit that in none of these tax acts will you find any pro­ United States. exce11t in the year. 186fi-66 and 1866-67, the exports for vision that these taxes are to be laid " in proportion to the census " those year being Rbont two-thirds to three-fourths, and that the retut·ns as is positively required. It is an historical fact that so great was. the r eceivetl at the Statistical Bureau at Washington show that 667,137,870 fear of members of the Constitutional Convention that Congress might pounds of cotton have been exported from the United States for the have or claim the powet· to levy direct taxes without regard to the rnle year ending June 30, 1867, of the value of $202,807,910. of apportionment or the population of the different States, as shown " Now, it is agreeu between the plaintiff and defenrlant that this by the census that the Constitution itself would never have been cause shall be tried by the court upon the fot·egoing facts ndmitted by adopted by the people of the rtifferent States if tbev bad not !wen sol­ both parties, antl the court may draw all inferences and make all emnly ass"ured by the leading statesmen of that day it wo~ld. never deductions from sa id facts that a jury might or could legally draw or result in oppressive taxation or violate in that respect the prmc1ple of makP. and the qu estio n ~ at issue between the parties which the court equality. (See the Federalist, J'lio. 36.) is asked to adjudge and determine is as to the validity and constitu­ In tbe argument of Mr. Phillips, of counsel fo.r: Farringto~, who was tionality of the various acts of Congress imposing a tax upon cotton, plaintiff in error in the Supreme.Court o~ the Umted Stat~s 1~ the case and particularly to the act of eongress approved July 13, 1866, im­ of Farrington against Saunders, m referrmg to these constitutional pro­ posing a tax of 3 cents per pound upon cotton produced within the visions we find this Rtrong lan"'uage: United States. And if upon the trial of the cause and argument of " By these restrictions the States supposed that they had protected counsel the court hould be of the opinion that said act of Congress themselves against partial or corrupt legislatiOn. For indirect ta~ation of the 13th of July, 1866, imposing said tax of 3 cents per pound they established unifo,rmity ; for direct they o:.l!cured apportionment ac­ upon the cotton prOduced "lthin the United States is constitutional cording to the census. ' anrt valid, thrn the judgment of the· court shall be simply for the Perry on Political Economy, page 443. defines a direct tax as follows: defendant and against the plaintiff and his security for the costs of "A direct tax is levied on the very persons who are tbemselv.eR ex, the cause. But if the court shall be of ,the opinion that said act of pected to pay it · an indirect tax is demanded from one person m the Congres:> imposing said tax is unconstitutional and invalid, then the expectation that ' be will pay it proviRionally, but will indemnify him­ judgment of the court shall be for the plaintiff, that he recover of the self in the higher price he will receivE> from the ultimate consumer. defendant the said sum of $2,005.74, with interest from the 27th day Thus the income tax is direct, while duties laid on imported goods are of June, 1867, and the costs of the cause. indirect." " The right to appeal, or to take an appeal in the nature of a writ urely these taxes come squarely within the definition of a direct • of error or to pro ecute a w1·ite of error to the Supreme Court of the t ax given by Perry. United Sattes, at Wa hington, or wherever the same shall be held, is UndoubtedJy the best defense that has ever been made for the levy reserved to both parties, to be taken by the losing party at his option, of these cotton taxes was made in a letter to Hon. George S. Boutwell, a ccording to law and th~> r ules of practice in the circuit and Supreme then Secretary of the Treasury, by the Hon. Isra~l _Kimball, at r~at Comts of tbe United States regulating the practice in appeals and writs time Commil'sioner of Internal Revenue. The op1mon of Mr. KJm­ of error from the circuit court to the Supreme Court. bHll can be fOund in Executive Document No. 181, Forty-second Con­ "This 2u day of September, 1867. gress, third session. It is covered in a letter from the Hon. George S. "WILLIAM M. FARRINGTON Boutwell Secreta ry of the Treasury, under date of February 4, 1873, "By WRIOH'l' & 'McKISICK, Attonteys, and dire~ted to the llon. James G. Blaine, at that time Speaker of the " ROLFE S. SAUNDERS, House of Representatives. Mr. Kimball consumes some 14 pages un­ "By MARLAND L. PERKINS, dertaking to defend the right of the Government to insist upon these ((Assistant United States Attorney, District of West Tennessee •. tuxes. Hut when his entire argument is brought down to its last 3830 CONGRESSION-AL RECORD-HOUSE. ~1ARCII 13, ' analysis the one main reason he gives to support his ccntention that By refenin~ to the agricultural report of 1867, page these taxes were indirect and, not direct is his statement, unsupported 90, it will be seen the corn crop of that year was in reason or by !act, that the producer did not in fact pay the tax; that worth------$610,948,390 the tax was added to the selling price axut the consumer paid it. The wheat crOP'------­ 421, 7!)(3, 460 With all due respect to Mr. · Kimball, this contention is little short o1i The oat crOP------­ 172,472,970 the absurd 'oecause everybody knowe that the farmer, whether be live The hay crOP------­ 372,864,670 in the South, North, East, or West, bas no more to do with firing a The cotton croP------­ 201,470,495 price for his products than has:the man in the . It is notoriousJ:y. And that including rye, barley, buckwheat, potatoes, - true that the price of cotton has always been fixed in the market at and tobaccct, the> whole crop was- worth______2, 007, 462, 231 Liverpool. By referring to the census of 1860 it will be seen that the cotton Messrs. Hughes & Sharkey, of couru;el for Farrington, have, however, crop, except 100 bales raised in Mis omi. and 6 bale in Illinois, was ans\ved thJs contention perfectly as follow-s; entirely raised in the 11 cotton States, and such has been the case "Is it [this tax] levied on. the p.ers7,­ Qpinions, concurred: in intimating (they say expressly that they do 094.98, wb_Jle the State of Kansas, wtth a populatiOn almost ~ J:u·ge, not give a judicial opinion) that the di:rect taxes contemplated by the only paid mto the Treasury of the country • :.!86.115. An~ so• m many Constitution are onJ.y two, to wit, the capitation tax and the tax on other ca ~s these ffgur~s Rre _of themselves fully sufficient to show land. Even if the intimation of these ,iud"'es were correct, . and that tb~ injust1c~ and gros mequahty of these cotton taxes. But we h~ve direct taxes as referred to in the Constitution were limited to two discovered m the act of August 5, 1861 (12 Stat. L., pp. 294-2!lo), and that tho e two were the capitation tax and a tax on land, theri some figures w~ich by_ comp_arison ~th thoo.;e of the table refer~·etl to the- contention which we make would be sound. We as ert this becau e will make th~ mequallty st1ll more 1mpress1Ve from another p~1nt of the courts and the law writers of approved authority all concur in the Yiew. That act lnid a di!ect tax of $20,000,000 upon land m the­ holding that the product of land, whether it be in rentals or whether United States and apport10ned the same among the several Stntes it be in crops, stands upon exactly the same footing as the land itself. according to population. It was a coustit!Itional act, !lnd it is highly In other words, if the levy of a tax upon land would be a direct tax instructive to compare the amounts apVuld likewise be considered as land and the rule of apportion- statement which we now present. ment would necessarily hav~ to be complied with. Direct taxes apportioned to the several cotwnr{!T'owing States bu act dl ..4.ug. 5, tSOJ, and We desire to call attention of the House to the fact thfl,t the Supreme amounts collected in smne Sla.tes under the cation-tax act'~. Court of the United States, when it delivered the- opinion in the Hylton case, was denied access to the debates in the Federal Convention. It is recognized in all courts that one of the very best rules of statutory Apportion- Collezted or constitutional construction is the will or the meaning of the legis­ State. men t tmder under t­ lator as contained in the debates leading up to the adoption of the act oil~l. ton-tax acts. particuar enactment. The debates in the Federal Convention were secret. No copies were allowed,. and when the convention adjourned the journal were placed in charge of the President, and they were Georgia...... ,. .• ~ ...... : .. . ~584., 367 $11, ffi7' 094 not laid before Congress or th-e country or published until after the 529 313 10 3 'f! 072 dPciHion in the Hylton case was made. This statement we get from ·113; o 1 s; u2; !l9a 1\fr. Robertson Topp, of counsel for appellant in the Farrington-8aun­ rr~=! :·:-::::::::: ~: ::::::::::::::::::::::::::::::::: ~ 3.'1.5, 8S6 10, ODS, 501 ders case, and Mr. Topp after making this statement sa.ys: Florida .... _.... _...... _...... n, 522 9t. , 914· " Thus it will be een that the court was deprived. of one of the best Arkansas-...... 2Gl &'\6 2 555 63'' means of determining the real meaning .of the Coru;titution, viz, the Tenn~see ...... ·--...... ! ...... 669; 4 7: 73: -16(} reas.ons given by tho ·e who made it." . North Oaroli.na ...... -· ... -...... 576,194 1, 9..39, 70!. Referring to the fear that some of the States would be in the power South Carolina ...... ·~·· -· - ...... --· .... _...... 363,570 4., 172,420 of the others and that grav-e in-jllStiee would. be done the weal{er ones in the matter oi taxation, Mr. Madison, in the convention, said: The direct taxes, laid by the · act of 1861, in conformity· with the "It is represented to be oppressive that the States which have slaves Constitution, have been refunded to the States from which they were• and tobacco should pay taxes on these for Federal want when other collected, while these illegal and unconstitutional cottorr taxes haw States who have them not would escape. But does th Constitution on been covered into the Treasury: and used for the benefit of the United . the table admit of this? On the contrary, there is a proportion to be States, and no restitution Ill8.de. It is an unusual case. Suppose the· laid on each State acco1·ding to its population." . acts· of Congress imposing these taxes' bad provided that! 11 States, Mr. Topp1 in his argument in the Farrington case, submits some naming them, should pay these taxes and that the remaining States figures taken from the een u of 1.860 which strike us a being a power­ should be exempt therefrom. Would it be contended for a moment that ful exposition of what might occur and of the injustice which might this was a complian~e with th~ constitutiohal provision which required· be perpetrated, and which, in fact, was perpetrated, in the levy of. these that such taxes should be uniform throughout the United States? Cer• cotton taxes. We desire to call attention to the table referned to:. tainly not. Can Congress by simply placing the wort! " all cotton By refening to the census of 1860 it will be seen that produced in the Unitell States"· evade· this provision when Con"TCSB the total population of the United States was__ _ 31,, 445, 089 knew, or must ha'Ve known. that the whole burden would fall upon 11 By the same table the population of the 11 cotton- States and would not and· eouW not1 be made uniform in its operation producing States wns ______911Q.3~333. throughout the United States?> By the same table the value of real and personal property of the United States in 1860 was ______$16,159,616,068 1 Law of nature prevented. .A tax on iron ore would violate Constitu­ Of the 11 cotton-producing States------5, 402, 165, 107 tion for same reason ; a tax on coal likewise. '. 1922. CONGRESSIONAL RECORD-HOUSE. 3831

Su<'h a <'ontention woulrl merPly b(' a juggling with words and a pros­ ance with the mandatory provisions of the Constitution, whether affil·ma­ tihltion of a solemnly C'nacted provision of our ot·ganic law unworthy of tive or negative, is a condition precedent to the validity of any law the merest tyro in com~titutional law: If our Constitution can be dis­ levying taxes on the property of the people. Nor does it matter, there­ torted and emaseulated by such legislative legerdemain. then the right fore, whether this cotton tax was a war tax or was not, for the taxing to lin\ the right to be free, and the right to pursue happiness, for which power•is restricted and qualified in respect to all taxation by an the our fathers fought and died in the Revolution, are not protected by our general limitations which are imposed upon its authority by the Consti­ sacred bond of union. tution. (Wilkes Co .. v. Coler. 180 U. S., 506, 525.) Not in anger, but in a broad spirit of brotherly love and patrit>tic IJ'urthermore, these acts violate the fundamental principle of all taxa· devotion to our belo•es remained in the States where tainable, the adoption of some rule tending to · that end is indispen­ the cotton was grown. thus showing that the great bulk of the crop sable." was exported and cstabl'shin;; raw cotton as an export beyond all ques­ Under this legislation the Government of the United States collected, tion. That this constitutional provision applies to the exporting of mainly from the people of the Southern States, who bad no voice in goods from one State to another in the Union, we desire to call atten­ laying these taxes, the sum of $68,072,388.99, and disposed of that tion to the definition of the word "export" given by Webster. He sum as it did of legitimate revenue. Every man, no matter from what says that exporting means- State he bails, or what may be his politics, should support this measure " To carrj out, to convey, or transport any traffic, produce, or goods as an act of simple justice to the people who were wronged. In all from one country to another, or from one State or jurisdiction to an: fairness, that sum should be refunded to those from whom it was other, either by water or land. We export wares and merchandise extorted. from the United States to Europe. The Northern States export manu­ Surely those who were compelled to pay these unconstitutional taxes factures to South Car<>lina and Georgia." shoulr1 not be treated worse than those persons who, acting under the In the case of .Almy v. California the court decirlPd that articles of provisions of the sugar bounty law, spent money in improvements and export from one State to another could not be taxed. No court in I machinery needed fot· the production of sugar. When the sugar bounty this country bas ever rendered 11n opinion. not evPn excepting the was declared unconstitutional by the Court of Appeals of the District Hylton case. that is contrary to the contention which we makr for of Columbia (Miles Planting Co. ·v. Carlisle, 5 D. C. App., 138), Con­ the refunding of this money wrongfully exacted from the people of gress refunded to them. by the act of 1895, the money which they bad these different StateR. · expended in accordance with the act of 1890, known as the " McKinley In the case of Pacific Insurance Co. v. Soule the learned judge who bill." In construing the act of 1895, the Supreme Court of the UnitPd rendered the opinion in that case said: States, in the celebrated Sugar Bounty case (United States v. Realty "The taxing power is givPn in the most comprehensive terms. The Co., 163 U. S., 442-443), said : only limitations imposed are that direct taxes, including the capita­ "Among the latest examples of payments that are not of a right or tion tax, shall be apportioned ; that duties, imposts, and excises sliall of any legal claim, but which are in the nature of a gratuity depending be uniform. and that no duty Rhall be imposed on articles exported upon equitable consioeration, are the cases just decided by this court from any State. With these exceptions the exercise of the power is of Blagge v. Balch, Brooks v. Cadman, and Foote v. Women's Board of in all respects unfettPred." (7 Wall., p. 446.) Missions, reported as one case in One bund1·ed and sixty-second United In ::~sking the passage of this bill and in ·isting upon this measure States Statutes, 439. The claims in those cases are what have been of retarded justice, we stand squarely upon the law as laid oown by known as the " French spoliation claims," being based upon depreda­ the court in the case of Soule. This Government ought to have the tions of French ct·uisers upon our commerce prior to July, 1801. An right to tax anything :md everything when the necessities of the appropriation for theii· payment was made by Congress in 1891 upon Government require it. But this Government in the exercise of that the conditions and to the class of persons named in the act. Questions right should strictly comply with every provision of the Constitution, arose as to the proper interpretation of the act and as to the character elsr constitutional go-vernment is a failure. Every mn.n who loves his of the payments provid.ed for therein. The court held the payments country anrl .who honors the flag must agree. in preserving without were purposely brought by Congress within the category of payments variance each and every clause of our orgamc law as framed anti that are not of right, but which are in the nature of a gratuity and as banded down to us by the patriots who planted the seeds of libertY n.n act of grace, though founded upon a prior moral or honorable obli­ in the friendly soil of this Western World. Since we have referrecl gation to pay to some one who might be said in some way to represent to the direct tnx act of 1861, it m11y be well in this place to refer the original sufferers. No question of the power of Congress to make to other acts amendatory of it and to certain decisions of the courts such appropriation was raised by anyone. construing tbP samP. The acts of .June 7. 1862 (12 Stat. L., 422), "Tlle power to provide for claims upon the State founded in equity Januarr 6, 1863 (12 Rtat L., 640), March 3, 1865 (13 Stat. L., 501), and justice has also been recognized as existing in the State govern­ and the resolution of February 25, 1867 (14 Stat. L., 568) , made oro­ ments. Fbr example, in Guilford v. ChPnang-o County (13 N. Y .. 143), vision for the assessment aDtl collection of this tax. All these acts it was held by the New-York Court of Appeals that the legislature was were construP.d h:v th~ ~ourt of Cln ims in the case of SPa brooke v. not confined in its appropriation of public moneys to sums to be raised United States (21 Ct. Cis .. Rept .. 39), IIarrison's case (20 id., 176), by taxation in favor of individuals to cases in which legal demands and Thompson's case (20 lCl., 270). In all these cases it was held existed against the State, but that it could recoguize claims founded in that where a tax ba. been illegally collected the money should be equity and justice in the largest sense of· these terms or in gratitude or refunded. And in Miles v. Johnson (59 Ff'cl. Rep., 38, 40) it was in charity. held that the word "tax " includes taxes which have been 11legally " Of course, the difference between the powers of the State legisla­ levied a.s well as those which have been illegally collected, though tures and that of the Congress of the United States is not lost sight of, legally levied. In nearly all jurisdictions provision if: made by stat­ l.mt it i-s believed that in relation to the power to recognize and to pay ute for the refunding of taxes illegally exacted. (27 American and obligations resting only upon moral considerations Ot' upon the general English Encyclopedia of Law (2<1 ed.), 756-757.) And the word principles of right and justice, the Federal Congress stands upon a "exacted " includes the levy aR well as the collection. · level with the State legislature. The act of June 8, 1872 ( 17 Stat. L., 339), restored to the former " In truth, the general proposition that Congress can direct the pay­ legal ownel's all lands then held by the United States under the direct ment of clebts whicb have only a strong moral and honorable obliga­ tax acts upon payment of taxes, interest, Pxpenses, etc., and released tion for their support is not, as we understand it, denied by the learned the title of the United States to the said lands. And subsequent counsel for the United States." statut!:'s have refunded the entire amount collected under the act of No one can deny that the claim of the cotton planters is altogether 1861 and the acts amendatory of it to the several States. See the act as valid as the " sugar-bounty claims " or the " French spoliation of March 2, 1891, " to eredit and pay to the several States and Terri­ claims." The cotton planters acted undw- the guaranty of the Con­ tories and the District of Columbia all moneys collected under the stitution of the nited States that their products should not be taken direct tax leviPd by the act of Congress approved August 5, 1861 " from them without just compensation or due process of law, unless (26 Stat. L., 822). By this act it was enacted that "it shall be the by means of direct taxes apportioned among the several States accot·d­ duty of the 8ecretary of the Treasury to credit to each State and ing to numbers. This guaranty was violated by the Federal Gover~­ Territory of the United States and to the District of Columbia a sum ment. Under the guise of taxation. the Government compelled them to equal to all collections bf set-off or otllenvise made from said States contribute a large portion of their property to public uses. In the anll Territories and the District of Columbia, or from any of the· citizens "income-tax cases" it was clearly demonstrated that any law of this or inhabitants thereof, or other .Persons, under the act of Congress ap· kind was invalid. What, then, is the legal consequence? Is it not proved .August 5, 1861, and the amendatory acts thereto, and that all clear that the Government assumed the responsibility of refunding to moneys due to the United States on the quota of direct tax apportioned those from whom it took the money in question every cent so taken? by section 8 of said act are hereby remitted and relinquished." And an But for the 'pr·evalence of sectional ill feeling these claims would have appropriation was made of a "sum sufficient to pay all money found been paid :.!~ years ago. In the Forty-third Congress bills were intro­ due to them under the provisions of this act." duced, with that end in view, by Mr. McKee, of Mississippi; by Mr. In almost every general deficiency bill which has pn.ssed the House White, of Alabama, on behalf of Mr. Alexander H. Stephens, of Georgia; within 20 years there bas been an appropria.tion for refunding taxes by Mr. Blount, of Georgia; and also by Mr. Sheldon and Mr. Cook. In illegally collected. We wi11 cite only two instances out of man~·-the the Forty-fourth Congress a similar bill was introduced by Mr. Roger act of April 30, 1890 (26 Stat. L., 547), appropriated $31,156.43 "for I Q. Mills, of Texas. These bills, respectively, were: H. R. 2250, Forty-­ the refunding of taxes illegally collected " ; the act of March 3, 1891 third Congress, first session, to refund certain taxes co1lected by the (26 Stat. L., 891), appropriated $12,317.42 for the same purpose. Sec­ Government of the United States on raw cotton during the years 1865, - tion 3689 of the Revised Statutes contains a general provision requiring 1866, 1867, and 1868, introduced March 2, 1874, by Mr. McKee; II. R. all such taxes to be refunded upon application of the party aggrieved. 2338, Forty-third Congress, first session, to refuno the cotton tax, in­ Now. we claim that the cotton taxes were not only illegally collected troduced by Mr. White, on behalf of Mr. Stephens, who was absent on but illegally levied ; because, in addition to the violation of the rule of account of sickness; H. R. 1076, Forty-third CongTess, first session, to apportionment, Congress, in laying these taxes, also violated the consti­ refund taxes collected by the United States on raw cotton during the tutional provision against laying duties on exports from any State and years 1863, 1864., 1865, 1866, 1867. 1868. introduced by ~Ir. Cook; those provisions relating to due process of law. But a literal compli- H. R. 1632. Fo.rty-third Congress, first sessiQn, to extend the time for

. 3832. 00NGRESSION .AL RECORD-HOUSE. ~fARCH 13,

collecting the cotton tax and reviving such claims as. are now barred, The Supreme Court o-f the United States has more recently passed introduced by Mr. Blount; a R. 3448, Forty-third Congress, first ses­ upon this question in the case of Pollock v. Farmers' Loan & 'l'L-ust Co. sion. to refund the cotton tax, jntroduced b:v Mr. Sheldon; H. R. 982, As reported in United States Supreme· Court Reports, volume 158, at Fol'ty-fourtll. Congress, first session, refunding the cotton tax to the pa.ge 601., th-e Supreme Court of the United States has squarely and producer of till! cotton, introduced by fr. Mills. All of these bills ex­ fall'ly declared these tax-es to· be illegal and un<:onstitutional. In the cept Mr. Blount' were referred to the Committee on Ways and Means, case stated Hylton v. The Unlted States ( 3 Dallas, p. 171) is further bnt were never reported back. The men who prepared them were , considered and, in view of the historical evidence cited, shown to have among the best lawyers then in Congress ; but the aJ:limosities en­ only decided that the " tax on carriages involved was an exeise and gendered by the late war were till too strong to secure for them a was an indirect tax.'-' respectful hearing. Chief Justice Fuller, in rendering the opinion in that ~ase, sai<;J: Another rea£on and a very cogJ;!nt on,e, and one which should appeal " In di tributing the power of taxatien the Constitution retained to strongly to the conscience of Congress, is the faet that when these tbe States. the absolute poweu of direct taxatio-n, but granted to the taxes were levied, when the e acts of Congress were enacted, the 11 Federal Gov.exnment the pnwer of the same taxation upon condition States affected by them and which had to bear the burden of over that in its exercise such taxes should be apportioned among the several sixty millions of dollars of taxation, had n& Repl'e8entatives in either States according to numbers, aud this was done in order to protect the branch of this Congress; no Representative in this Hou e and no Sena­ States, whi.ch we1·e surrenderin$ to the Federal Government so many tor at the other end of the Capitol was here to raise his voice or to sources of rncome, the power or direct taxation, w.hkh was their prin­ cast his vote on these questions which so vitally affected the im­ cipal remaining- resource." poverished people of the 11 cotton-growing States. The Chief Justice further said : Therefore that provision of the Constitution with reference to rep­ ''Taxes on real e tate being indisputabl:v direct taxes taxes on the resentation and taxation was_ violated. It seems that this objection lands or incomes of real estate are clearly direct taxes.'' ' to the validity of the taxes in question ought to appeal more strongLy Again he said : if possible to the conscience of Congress than even the other clauses !' Taxes on personal property or on the income of personal property arc which were violated by these different acts. The Constitution says: likewi e direct ta:xes." " Representation and di.reet taxes shall be apportioned. among the sev­ The Chief Justice further in the decision uses this language : eral States which may be included within this Union according to their " The tax imposed by sections 27 to 37, inclusive, of the act of 1894, respective number ." so far a it applies to the income of r al estate and of per onal prop­ It has been aid that- erty, being a clil'ect tax within the meaning of the Constitution and " representation constitutes the genius of this Government, and to im­ therefore unconstitutional and void because not apportioned according po e ta.xe or burdens without it is to change it charactPr. But for tax­ to representation of those sections constituting one entire scheme of ation without representation the Govel'nment it elf would never have taxation, is necessarily invalid.'' existed." Th were the " income-tax cases," and it will be remembered that 'l'he Stamp Act, the act placing a duty on tea, and other acts of tho the Chief lustice and four of his associates concurred in the opinion British Parliament broughi on the Revolution on the ground., pure and rendered by the majority of the court. It is true that four associate simple, that it was legislation without representation. This Government justic s-namely, Ur. Justice Harlan, Mr. J"ust:ice Brown, .Mr. Justice bad its origin in the protest of the fathers against taxation without White, and Mr. Justice Jackson-dissented from the opinion, Mr. Justice representation. In 1706, on the question of the repeal of the Stamp Act Harlan using this languRge : in the British Parliament, Lord Camden, formerly Chief Justice h·att, "The recent Civil Wa1·, involving the very existence of· the Nation, said: was brought to a successful end and the authority of the Nation restored "My proposition is this: in part by the use of vast amounts of mont>y raised under statutes im­ "'I repeat it and will maintain it to the last hour. Taxation and posing duties on income derived from every kind of property, real and representation are inseparable. Opposition is founded in the law of personal, not by the unequal rule of apportionment among the States nature. l!'or whatsoever is a man's own, it is absolutely his own. No on the basis of n-umbers but by the rule of uniformity operating upon man has the right to take it from him without his consent. Whoever individuals and corporations in all the States, and we are now asked to attempts to do it does him an injury. Whoever does it commits a rob­ declare, and the judgment this day rendered in effect declares, that the bel'y.'" (See 5 's History, pp. 446-448.) enormous sums thus taken from the people and so used were taken in In discussing the question of the right of Parliament to tax Amerka, violation of the supreme law of the land.'' William Pitt in the House of Commons aid: , There ean be ne po sible question, in view of the decision of the court "I will only speak to one point-the J?Oint which seems not to have in the "in-come-tax eases," that H is the duty of Congress to refund been generally understood. I mean the nght. Some gentlemen seem to the moneys collected by virtue of these tax· statutes. It is said by some have considered it a point of honor. If gentle1nen consider it in that that Congress can not afford to do it because it involves such a la1·ge light they leave all measures of right and. wrong to follow a delusion amount of money, mot·e than $68,000,000. But when gentlemen view that may lead to ·destruction. It is my point that this Kingdom bas no the case from that standpoint they must remember that the Government right to lay a tax on the Colonles. At the same time, I assert the bas had. tho use of this $68,000,000 for 40 years and more i that it was authority of tbi1> Kingdom over the Colonies to be sovereign and supreme originally wrung from the lean pur. es of people who we1·~ ImpoveTished in every circlUUstancP of government and legislation whatsoever. They by four years of cruel, ceaseles. war; that it was wrung from the lean are the sulljects of this Kingdom, entitled with yourselves to all the purses of people whose homes had been laid in ashes and who e every rights or mankind and the peculiar privileges of Englishmen, equally household was in mourning. They must remember that this money was bound by its laws and equaJly participating in the constitution of this taken from people who had no voice in the levying of it; that it was free country,; The Americans are the sons of England. Taxation is no taken fYom a people who could least afford to lJear the burden, and that part of the goveming or legislative power. The taxes a.re a voluntary now, after this rieh, powerfol Government has had the use of it without gift and grant." intere t for more than 40 years, these people are simply asking that the Mr. Pitt took this position olely on Ute ground that the Colonies principal be refunded. The Supreme Court of the United States has were not rept'CSented, antl it must be remembe-red that taxation with­ said, in effect. th-at it ought to be refunded; has said, in effect, that it out representatiou was the great rallying ery of the colonists and their would not be honest on the pai't of the Gove1·nment to retain it. chief cause of complaint when they severed their relations with the There have been no laches on the part of the claimants for the returu mothei' country. . of these tax.es as is evidenced by- biUs introduced in Congress, as follows : James Burgh, the celebrated Scotchman, in discussing this same [H. R. 235'4, Fift)'-third Congress, .first session. By :\fr. Elnloe.] question, said : " 'fhat the Secret..'lry of the Treasury issue to the governors of the " No pretext can justify taxing them (the Colonies) so long as th-ey several States in which cotton taxes were paid United States bonds in continue un1·epresented-" amounts specified f.or each State and equal to the amount of taxes col­ The States affected by the cotton taxes were not onJy not repre­ lected within the State. These bonds to be held by said States, to be sented when these several tax acts were enacte.d, but they were posi­ refunded and distributerl to tbe pat'ties who paid the tax. In case of a tively denied represe-ntation in both the Senate and House of Repre­ surplu. remalniug, the funds to be devoted to the school fnnd." sentatives by solemn resolution of both bodies. (Th re was no report on this !JilL) In December, 1865, the House of Representatives passed a resolu- tion to this effect : . [II. R. 281, Fifty-third Congress, first session. By 1\ir. Money.] "That all papers which may be offered relative to the representation· " That the Secretary of th~ Treasury issue noninterest-bearing Treas­ of the late so-called Confe-derate States of America, or either of tilem, ury notes in such denominations as may b.e deemed expedient to the ev­ hall be referred to the joint committee of 15 without debate, and no eral States in amounts equal to the cotton taxes collected thet·ein, as in­ members shall be admitted from either of said so-called States until dicated by the internal~ revenue repOI"t. That the sum so paid shall be Congress shall declare said States, Ot' either of them, entitled to repre­ helD. in trust by the several States for the benefit of the cotton pro­ sentation." ducet·s, to be paid to them under such provisions as each State may On ll'ebruary 20, 1866, the Hou e passed, and. on Mat·ch 2, 1866, the deem it proper to muke. In case the producer ean not be reimbm~sed, Senate passed, this resolution : the sum not distributed shall become the property of the State. 'l'he "Resolved 7r1J the House of Representat-ives (the Settate concurring), claims must be filed with each State within two years after tbe paf'sage That in order to close agitation on the question which seems likely to of an act by such State peoviding for the distribution· of the money di turb the action of the Government, as well as to kill the uncer- refunded. Tba.t these notes shall become legal tender and hull not be . tainty wbicll is agitating the mind of the people of the 11 States which canceled by the United. .States when received at the 'l'reasury, but used have been deciared to be in insurrection, no Senator or Representative as other money." Rhall be aumitted into either branch of Congress from any of said (No repot·U . States until Cong1·ess shall have declared such State entitled to repre­ (H. R. 2356, Fifty-third Congre s, fir. t session, is same as 2354.) sentation." As it ha.s been repeatedly held by the Federal courts, and by all [H. R. 196, Fifty-third Congress, firt session. By Mr. Wheeler.] the departments of Government, that these States were never out of "That the Secretary of the 'l're-asut>y shall pay money equal to the the Union, you have here a Congress denying them representation. and amount collected in cotton taxes to each State, said State to designate at the same time exacting taxes from them. "Taxation without rep­ · who shall be custodian of the fund. In ca. e the tax was paid b:v the resentation is robbery." The remarkable spectacle was presented to pet·son" to whom the cotton was shipped residing in another State, the the world of 11 States of this Republic, solemnly declared by the dif­ State where said cotton was grown shall be the recipient." ferent departments of Government to be States in the Federal Union, (No report.) yet by so!P.mn r solution denied representation in the law-making body, [H. R. 138, Fifty-third Congres , first ses ion. By Mr. Oates.] and that law-making body exacting taxes from them on their principal product of over ~GO,OOO,OOO. Surely, now that the clouds of Civil War " In the case of the Supreme Court holding the law undt-r whic.h cot­ have vanished and sectional hate, we are told, lies burled never to ,be ton taxes were collected unconstitutionnl, any citizen who bad paid the resurrected, in this day of national unity and general good feeling and tax shall be permitted to bring snit for its recovery jn the Comt of . brotherly love, yon will r fund these moneys that have been wrongfully, Claims. . Within 60 days after judgment either the petitioner or the unjustly, un on titunonru1y, and illegally exacted. United States shall have the right of appeal to the Supreme Court, and In 18GB Congress repealed the tax on raw cotton. Wh:V should this wh€n such appeal shall have been taken the court shall not try any tax have been repealed? If the tax were just and constitutional and case until the appeal case bas been decided. The Court of Claims shall right, why repeal it? If it was constitutional and proper in 1862, decide all suits whieh are bt·ought within one year of the Supreme 1864, 1866, and 1867, why was it not constitutional and right in 1868? Coul't's holding the original tax law to be unconstitutional:" And if it were colliltitutlonal, why not retain it? (No. report.) 1922. CONGRESSIONAL RECORD-HOUSE. 3833

[H. R. 124, first es ion Fifty-third Congress. By Mr. McRae.] "These acts are attributable to the War of 1812. " That the Secretary of the Treasury pay to each State a sum equal " The act of August. 5, 1861 (12 ~tat., 292-294, c. 45), imposed a to the cotton taxes collected therein, the said States to pay to ~uch tax of $20,000,000, which. was apportio:J?-ed and to be levied wholly on producers as shall make claim within two years after the passage of real estate, and also lened taxes on mcomes whether derived from this act. The remainder, if any, shall be used as a permanent school property or profession, trade or vocation (12 Stat. L. 309) and this fund. In no case shall payment be made to any assignee of such claim." was followed by the acts of July 1, 1862 (12 Stat. L., 432 473, c. 119} ; (No report.) March 3, 1863 (12 Stat. L., 713, 723, c. 74) ; June 30, l864 (13 Stat. L., 223, 281, c. 173); March 3, 1865 (13 Stat. L., 469, 479, c. 78); (H. R. 264~ ~ first se sion, Fifty-second Congress, is same as 124, first March 10, 1866 (14 Stat. L., 4, c. 15) ; July 13, 1866 (14 Stat. L., 98, session Fifty-tnird Congress. No report.) 137, c. 184) ; March 2, 1867 (14 Stat., 471, 477, c. 169) ; and July 14 (H. R. 2607 same as H. R. 196, first session Fifty-third Congress. No 1870 (16 Stat., 256, c. 255). ' report.) "He finds: (H. R. 650, first session Fifty-second Congresst same as 2354 first " First. That the distinction between direct and indirect taxation was session Fifty-third Congress. No report.) ' well understood by the framers of the Constitution and those who [H. R. 8365, first session Fifty-second Congress. By Mr. Oates.] adopted it. " This bill is same as introduced by Mr. Oats in Fifty-third Con"'ress "Second. That under the State systems of taxation all taxes on real The House report is 2528, first session Fifty-second Congress." " · estate or personal property or the rents or income thereof were regarded as direct taxes. [H. R. 8366, first session Fifty-second Congress. By Mr. Oates.] '"Third. That the rules of apportionment and of uniformity were "That" the Secretary of the Treasury pay to each State an amount adopted in view of that distinction and those systems. equa} to the cotton tax collected within said State. to be disposed of by "Fourth. That whether the tax on carriages was direct or indirect such State as theil' next legislatures shall direct." W!lS disputed, but the tax was sustained as a tax on the use and an (No report.) excise. [H. R. 700, second session Forty-second Congress. By Mr. Golladay.] "Fifth. That the or~inal expectation W!lS that the power of direct taxation would be exerCISed only in extnordinary exigencies, and down " That the Secretary of the Treasury refund to all persons the cotton to August 15, 1894, this expectation has been realized. tax collected by the United States, and that he shall make such rules "In Pacific Insurance Co. v. Soule (7 Wall., 433) the validity of a as he may deem necessary in connection therewith." tax which was described as 'upon the business of an insurance com­ (No report.) pany' was sustained on the ground that it W!lS 'a duty or excise' [H. R. 1592, second session Forty-second Congress. By Mr. McKee.} and came within the decision in Hylton's case. "That restitution shall be made of all moneys collected as cotton " In Veazie Bank v. Tenno (8 Wall., 533, 544, 646) a tax was laid taxes. That the Secretary of the Treasury shall issue bonds of $500 on the circulation of State banks or national banks paying out tlte notes and $1,000 denomination and 'l'rea.sury notes to cover amounts less than of individuals or State banks, and it was held that it might well be that. That a commission shall be appointed by the President by a~d classed under the head of duties and as falling within the same cate­ wit;Jl the advice and cons~n~ of the Se~te. which shall adjudicate all gory as Soule's case (8 Wall., 547). claims. That s_ucJ;t commis.sion,shall Sit for two _years and all claims "And in respeet of the opinions in Hylton's case the Chief Justice must be filed w1thm that time. (The rest of th1s long bill prescribes (Chase) said: t~€ J?anner of taking. t estimony aDd the duties and powers of the com- " ' It may further be taken as established upon the testimony of Pat­ missiOn.) · erson that the words " direct taxes,'' as used in the Constitution com­ (No report.) prehended only capitation taxes and taxes on land, and perhaps' taxes We present with this report extracts !rom the opinion of the court on personal property by ;;eneral valuation and assessment of the various as well as from the. diss.enti~g opinion of the justices in the income-ta."t descriptions possessed w1tbin the several States.' · cases, and from which It w1ll be seen that the contentions IIUlde were "Scholey v. Rew (23 Wall., 331) was the case of a succession tax ~mi;Jl:y sus~ained py the highest court in the land, the most exalted which the court held to be ' plainly an excise tax or duty ' upon the JUdiCml tnbunal m all the world. devolution of the estate or the right to become beneficially entitled to the same, or the income thereof, in possession or expectancy. [Pollock v. Farmers' Loan & Tr_!lSt Co.J.. U. S. Supreme Court Repts., " In Railroad Co. v. Collector (100 U. S., 595, 596) the validity of a vol. 1<17. p. 4;:::1!.] tax collected of a corporation upon the interest paid by it upon its Chief Justice Fuller : bonds was held to be ' essentially an excise on the business of the class "The men who framed and adopted that instrument [the Con titu­ of corporationR mentioned in the statute.' , tion] had just emerged from the struggle for independence whose rally­ "The case of Springer v. United States (102 U. S., 586, 602), chiefly ing ery had been that ' taxation and representation go together.' relied on and urged upon us as decisive. "That was an action of ejectment brought on a tax deed issued to * * * * • * * the United States on sale of defendant's real estate for income taxes. "The !Bother country had taught the colonists in the contests waged The defendant contended that the deed was void because the tax was to establish that taxes could not be imposed by the sovereign except as a direct tax not levied in accordance with the Constitution. Unless they ~ ere granted b_y the re\)re se nt~tives of the realm, that self-taxation the tax were wholly invalid, the defense failed. constituted the mam security agamst oppression. " The opinion thus concludes : * * * * * • • "'Our conclusions are that direct taxes, within the meaning of the " Thus in the matter of taxation the Constitution recognizes the two Constitution, are only capitation taxeshas expressed in that instrument, great clas.s e~ of d_i~ect and indirect taxes and lays down two rules by and taxes on real estate; and that t e tax of which the plaintiff in which then nnpos1t10n must be governed, namely, the rules of apportion­ error complains is within the category of an excise or duty. · ment as. to direct taxes and the rule of uniformity as to duties, imposts "While [says Chief Justice FnJler] this language is broad enough to and exciSes. , cover the interest as well a.s the professional earnings, the case would * • • * • * * have ·been more significant as a precedent if the distinction bad been. "And this view was expres ed by Mr. Chlef Justice Cha e in the brought out in the report and commented on in arriving at judgment, LicE!nse Tax cases (5 Wall., 464-471), when he said: 'It is true that for a tax en professional reeeipts might be treated as an excise or duty. the power of Congress to tax is a very extensive power. It is ""iven in and therefore indirect, when a tax on the income of personalty might the Constitut ion with only one exception and only two qualifi'"cations be held to be direct. Congre s can not tax e1.-ports and it must impose direct taxes by the "Be this as it may, it is conceded in all these cases, from that of rule of. al?portionment and in~rect taxes by the rule of the uniformity. Hylton to that of Springer, that taxes on land are direct taxes, and in ~bu s llm1~ed, R?d thus only, It reaches every subject and may be exer­ none of them is it determined that ta,Xes on rents or income detived crsed at discretion.' from land are not taxes on land. • • • • • • • • • • " Ordinarily all taxes paid primarily by persons who can shift the "The requirement ot the Constitution is that no direct tax shall be laid otherwise than by apportionment-the prohibition is not against burden upon some one else, or who are under no legal compulsion to pay direct taxes on land, from which the implication is sought to be drawn them, are considered indirect taxes ; but a tax upon property holders in that indirect taxes on land would be constitutional, but it is against respect of their estates, whether real or personal, or of the income al.I direct taxes-and it is admitted that a tax on real estate is a direct yielded by such estates, and the payment of which can not be avoided tax. Unless, therefore, a tax upon rents or income issuing out of lands are direct taxes. ' is intrinsically so different from a tax on the land itself that it belongs * • • • to a wholly different class of taxes, such taxes must be regarded as "In the convention of Massachusetts, by which the Constitution was falling within the same category a.s a tax on real estate eo nomine. ratified, the second section of Article I being under consideration Mr The name of the tax is unimportant. The real question is : Is there any Klng said, 'It is a principle of this Constitution that represent~tion basis upon which to rest the contention that real estate belongs to one and taxation should go hand in hand.' • - of the two great classes of taxes ana the rent or income which is the incident of its ownership belongs to the other? We are unable to per­ • ceive any ground for the alleged distinction. An annual tax upon the "And John , Davis, Sumner, King, and Sedgwick all agreed annual value or annual user of real estate appears to us the same in that a direct tax would be the last source of revenue resorted to by substance as an annual tax on the real estate, which would be paid out Congre s." of the rent or income. This law taxes the income received from land "In Virginia ~Ir. John Marshall said: 'The objects of direct taxes are and the growth or produce o:f the land. i\fr. Justice Paterson observed well understood ; they are but few; what are they? Lands slaves in Hylton's case, • Land, independently of its produce, is or no value' · stock of all kinds, anrl a few other articles of domestic property.' ' and certainly had no thought that direct taxes were confined to un~ " l\Ir. Randolph said : • But in this new Constitution there is a more productive land. just .a nd equ_Hable rule fixed-a limi~tion beyond which they can not go. Re-prese-ntatn·es and taxes go hand m hand; according to the one will • • • • • • • the oth~>r be regulated. Tbe number of Representatives is determined " Nothing can be clearer than that what the Constitution intended by the number of inbalJitants ; they ha:ve nothing to do but to lay taxes to guard against was the exercise by the General Government of the nccordingly: power of directlY taxing persons and property within any State throu""b "In dh;cussing the case of Hylton v. United States (carriage-tax a majority made up from the other States. It is true that the effect 'O:t case), the Chief Justice says : ' It will· be perceived that each of the requiring direct taxes to be apportioned among the States in propor­ justices, while suggesting doubt whether anything but a capitation or a tion to their popnlation is necessarily that the amount of taxes on the land tax was a direct tax within the meaning of the Constitution dis­ individual taxpayer in a State having the taxable subject matter to a tinctly avoided expressing an opinion upon that question or laying down larger extent in proportion to its population than another State has a comprehensive definition, but confined his opinion to the case before would be less than in such other State, but this inequality must be held the court. to have been contemplated, and was manifestly designed to operate to "' lly the act of .Tuly 14, 1798, when a war with France was supposed restrain the exercise of the power of direct taxation to extraordinat·y to be impending, a dil'ect tax o-f $2,000,000 was apportioned to the emergencies, and to prevent an attack upon accumulated property by State , respectively, etc. . mere force of numbers. ·" ' Br the act of August 2, 1813, a direct tax of $3,000 000 wns laid • • • • * • • and apportion(>(} to the State . . ' "But the acceptance of the rule of apportionment was one <>f the "''£he act of January 9, 1815, laid a direct tax of $6 000 000 which compromises which made the adoption of the Constitution possible. and was apportioned, assessed,' etc. . ' ' ' secUI·ed the creation of that dual form ()f government, so elastic and 3834~ CONGRESSIONAL RECORD-HOUSE. ~1ARCH 13,

so strong, which bas thus far survived in unabated vigor. If, by call­ believe that the law was unconstitutional. The argument o! ex-Justice ing a tax indirect when it is e.s entially direct, the rule of proportion John A. Campbell before the Supreme Court is very convincing. The could be frittered away, one the great landmarks defining the boundary Government of the United States is one which proceeds in its civil between the Nation and the States of which it is composed would have operations according to law, and it never ·was intended to be aaminis­ disappeared, and with it one of the bulwarks of private rights and tered in any of its departments otherwise. Your committee think the private property. question of sufficient importance to provide a· means by which the u­ • • • • • • • preme Court may determine the question of constitutionality and "• We are of opinion that the law in question, so far as it levies a thereby forever set at rest the questiQn as to whether this lar"'e sum tax on the rents or income of real estate, lS in violation of the Constitu­ collected as taxes was rightfully or wrongfully collected. The bill pro­ tion and is invalid.' vides for opening the Court of Claims to those who paid the tax until "Mr.- Justice Field first cans attention to the debates in the 'conven­ a case is made and appealed to the Supreme Court, and then for a tion,' an·d particularly to the unwillingness of the coast States to stay of proceedings until that court decides the question; and should the relinquish their right to levy duties upon imports, and ot the small court hold the acts to be unconstitutional it allows one year thereafter interior States to confer upon the General Government the right to to all persons interested to bring their suits in said Court of Claims. levy dir<'ct taxes, and says : ' It was feared at times that the effort to On 'the contrary, if the law is sustained, that would put an end to all form a new govErnment would fail. But happily a compromise was these claim . effected by an agreement that direct taxes should be laid by Congress "Your committee, therefore, believing it just, report said bill favor­ by apportioning them among the States according to their representa­ ably to the House and recommend its passage.'' tion. In return for this concession by some of the States, the other This committee is firmly of the opinion that this money should be States bordering on navigable waters consented to relinquish to the refunded by the Government of the United States to the people who new Government the control of duties, impo ts, and ncises, a.nd the paid these taxes. We believe that any impartial, conscientious man regulation of commerce, with the condition that the duties, imposts, who will take the time to examine the record and the law must come and excises should be uniform throughout the United States ; so that to the conclusion that the four acts of Congress mentioned were illegal, on the one hand anything like oppression or undue advantage of any unconstitutional, and void, and that after a. lapse of more than 50 years one State over the others would be prevented by the apportionment ot surely the principal, without interest, should be refunded, all of which the direct taAeS amo.ng the States according to their representation, is respectfully submitted. and, on the other hand, anything like oppression OJ.' hardship in the levying of duties, imposts, and excises would be avoided by the pro­ Mr. FOCHT. 1\lr. Chairman, I move that the committee Cl.o vision that they should be uniform throughout the United States. This now ri e. compromise was es entia! to the continued union and harmony of the State . ·It protected every State from being controlled in its taxation The motion was agreed to. by the superior number of one or more pther States.' Accordingly the committee rose; and. Mr. WALSH having " ~ If the court sanctions the power of discriminating taxation and taken the chair as Speaker pro tempore, Mr. TILsoN, Chair­ nullifies tbe uniformity mandate of the Constitution,' as said by one who has been all his life a student of our institutions, 'it will mark man of the Committee of the Whole House on the state of the the hour when the sure decadence of our present Government will Union, reported that that committee having had under consid­ commence. eration the bill (H. R. 6309) to regulate pawnbroker and "'There is no safety in allowing the limitation to be adjusted except in strict compliance with the mandates of the Constitution, which their bu ine s in the District of Columbia, had come to no require its taxation, if imposed by direct taxes, to be apportioned among resolution thereon. the States according to theii· representation, and if imposed by in­ LEAVE OF ABSENCE. direct taxes, to be uniform in operation and, so far as practicable, in proportion to their property, equal upon all citizens.'" By unanimous consent, leave of ab ence was granted- We beg leave to quote House Report 2528, Fifty-second Congress, sec­ To 1\lr. BLANTON, indefinitely, on account of important busi­ ond ses ·ion, made by the Ron. W. C. Oates, then a Member of Congress from the State of Alabama, a member of the Committee on the Judi­ ness. ciary, as follows: ADJOURNMENT. [Houl':e Rept. 2528, 52d Cong., 2d ses .] Mr. UNDERHILL. 1\lr. Speaker, I move that the House do "The Committee on the Judiciary, having bad under consideration the bill (H. R. 8365) entitled 'A bill to provide for refunding the tax: now adjourn. laid and collected o.n raw cotton in the event that the Supreme Coul't The motion was agreed to ; accordingly (at 4 o'clock and 45 holds the law under which the same was collected to have IJeen uncon­ minutes p. m.) the House adjourned until Tuesday, l\larch 14, stitutional,' make to the House the following report: ' " By the act of Congt·ess approved July 1, 1862, and subsequent 1922, at 12 o'clock noon. amendatory acts, a tax was imposed on raw cotton, under which col­ lections were made and the money paid into the Treasury of the United States, aggregating $68,072,388.99. This money was collected in the · REPORTS OF COM~'IITTEES ON PUBLIC BILLS AND years 1863 to 1808, both inclusive. RESOLUTIONS. "At the beginning of the late war a large part of the crop of 1860 was l:Jeld br broken; and factors :n the Northern States for the benefit Under clause 2 of Rule XIII, of tbe producers. A large part of the crop of 1861 ln the border ~tates Mr. McFADDEN: Committee on Banking and Currency. also went into the hands of northern factor , which accounts for the fact that a con. iderai.Jle amount of this tax was collected in New York, H. R. 8996. A bill to amend 11aragraph 440, section 5211, act Philadelphia, and other points in the Northern States, but all of the June 3, 1864; without amendment (Rept. ·No. 792). Referred cotton upon which the tax thus collected was grown exclusively in to the Committee of the Whole House on the tate of the the Southern States. This tax was enforced and collected upon all these cottons as well as those grown subsl'quent to its enactme.ilt; Union. • $64,935,121.56 of this tax was collected in the Southern States, either Mr. GREENE of Vermont: Committee on Military Affairs. directly or indirectly, from the producers. R. " Section 8 ot Article I of the Constitution empower Congress to lay H. 10271. A bill to reduce the number of officer.· of the Regu­ and collect taxes, duties, impost , and excises for tht·ee general pur­ lar Anny, and for other purposes; without amendment (Rept. poses, viz, first, to pay the debts of the United States ; second, to pro­ No. 793). Referred to the Committee of the \"iTJtole House on vide for the common defen e of the United tates; and, third, to pro­ vide for the general wl'Ifare of the United States. 'l'he latter part of the state of the Union. that section contains the following restriction upon this exercise of 1\lr. l\lcFADDEN: Committee on Banking and Currency. power: 'But all duties, imposts, and excises shall be uniform tllrough­ H. R. 9527. A bill to amend section 5136, Revised Statutes of out the United States.' the United States, relating to corporate powers of a sociations, " Subdivisions 4 and 5 of section 9 are as follows: 'No capitation or orher1 direct tax shall be laid unle s in proportion to the census ot· so as to provide succe sion thereof until dissolved, and to apply enumeration hereinbefore directed to be taken ; and • no tax or duties said section as so amended to all national banking a sociation ; shall be laid or articles l'xported from any 8tate.' . "The original act taxing cotton read as follows : with amendments (Uept. No. 794). Refel'red to the House "'There shall be paid by the producer, owner, or holder upon all Calendar. . cotton produced within the United States, • • • a tax of 2 cents 1\lr. l\JcF ADDE:N : Committee on Banking and Cnrrency. per pound,' etc. The last one of the amendatory acts in relation to . aid tax was approved July 13, 1866, entitled ' An act to reduce in­ H. R. ·9400. A bill to amend section 5209, Revised Statutes of ternal taxation,' etc., but in fact it increa ·ed the tax imposed upon the ·united States. relating to penalty for embezzlement hy cotton from 2 to 3 cents per pound. Under the latter amendment Federal resen·e officers, ngents, or employees, so a to include three-fourths of the total amount of the tax was collected. It will therefore be observed that it waN not a war tax, but enacted more than national bank examiner or assistant ; with amendments (Rept. a year after the peace. It is yet a.n open question a to whether these No. 795). Referred to the House Calendar. acts "were constitutional. If the tax laid was a direct one, then it is unque ·tionably unconstitutional for want of uniformity in apportion­ ment. If the tax aid on raw cotton was indirect, it was constitutional, unles it was a tax upon exports, in which latter event it was PUBLIC BILLS, RESOLUTIONS, AND MKl\lORIALS. unconstitutional. "The que tion of the constitutionality of the laws laying this tax Under clause 3 of Rule XXII, bills, resolutions, and memorials was brought before the Supreme Court of the United States in the case were introduced and severally referred as follows : of Sanders, from Tenne ee, and very ably argued upon both sides By Mr. ANTHONY: A bill (H. R. 10871) making appropria­ before that tribunal. Eight of the justices sat in the case. Chief Justice Chase, being indisposed, did not sit in the case; and after full tions for the military and nonmilitary activities of the War consideration the com·t was found to be equally divided, four justices Department for the fiscal year ending June 30, 1923, and for maintaining that the acts were unconstitutional and four maintaining other purposes; committed to tbe Committee of the Whole House that they were constitutional. Before the question ·could IJe again pre­ sented the law was repealed, after which a case could not be made. on the state of the Union and ordered to be printed. If this tax was impo ed by a constitutional law, however oppressive its By 1\Ir. JOHNSO:N of \Vashington: A bill (H. R. 10872) au­ operation upon the people of the Southern, or cotton-growing. States, thorizing use of special canceling stamps in the Tacoma po t there is no legal ground or claim for refundin~ the tax. On the other hand, if the law impo~ing the tax was unconstitutional, the money was office; to the Committee on the Post Office and Post Hoacls. wt·ongfully collected, and there is an implied promise upon the part of By Mr. OVERSTREET: A bill (H. R. 10873) to extend .redis­ the Government to refund it; or, in other words, it Is a debt against the United States Goverument which should be paid. A great many count privileges to farm loan bonds, promote their ale, ancl for people, and among them many of the very best lawyers in the country. other purposes; to tile Committee on Banking and Currency. 1922. OONGRESSION.A.L -RECORD-SENATE. 3835

By Mr. FORDNEY: A bill '(H. R. 10874) to provide adjusted 4588. By Mr. FULLER: Petition 10f R Hendrickson :and 83 compensation for veterans of the World War, and for other other citizens of Streator, ill., urging immediate enactment -of purposes; to the Committee on Ways and Means. an adequate protective tariff law, based on American valuation; _ By l\Ir. FITZGERALD: A bill (H. R. 10875) to exempt from to the Committee on Ways and Means. taxation Liberty bonds now taxed in th-e guise of capital stock 4589. By 1\1r. JAl\IES: Resolution adopted at Iron River, by amending section 1000 of Title X of public act No. 08, ap­ 1\Iich., by th€ Upper Peninsula Association of Amei·ican Legi-on proYed November 23, 1921; to the Committee on Ways and Posts, in ·favor of th€ adjusted compensation bill ; to thee Com­ 1\Ieans. mittee on Ways and l\Ieans. By McLAUGHLIN of Nebraska: A bill (H. R. 10876) amend­ 4590. By l\Ir. KELLY of Pennsylvania: R€solutions of Aspin­ ing section 1 of the interstate mmmerce act ; to the Committee wall (Pa.) Post, American Legion. protesting against attack on Interstate and Foreign Commerce. upon soldiers' adjusted compensation by members of Pittsburgh By .Mr. TREADWAY: A bill (H. R. 10877) to permit an in­ Chamber of Comme1·ee ; to th€ Committee on w .ays and Means. crease in the number of jnternal Tevenue collection districts and 4591. By MJ:. KIESS: Evidence in support of H. R. 10126, in the number of collectors of internal re~enue; to the Com­ granting a pension to John A. O'Dell; to the Committee on In­ mittee on Ways and l\leans. valid Pensions. By l\lr. ~1cFADDEN: A bill (H. R 10878) to am~nd ".An act 4592.. By I\lr. KISSEL: Petition of William Mul-doon, New to provide for the con. olidation of national banking assoda­ York City, N. Y1, relative to national physical culture week, tions," approYed November 7, 1918, and to provide for the con­ Ma3• 1 to 8, 1922, "to build a stronger Nation".; to the Ccmmittee -solidation of State banks with national banking associations; on Education. to the Committee on Banking and Currency. · 4593. Also, petition of the National Retail Dry Goods Asso­ By the SPEAKER (by request) : Memorial of the Legislature ciation, New York City, N. Y., relative to the tariff and Ameri­ of the State of Arizona, favoring the retention of United States can valuations; to the Committee on Ways and Means. soldiers at Fort Apache, Ariz. ; to tlie Committee on Military 4594. Also, petition of the American Association for Labor Affairs. Legislation, New York City, N. Y., urging the passage of the By 1\lr. HILL: Memorial of the Legislature of the State of Fitzgerald accident compensation bill (H. R. 10034) ; to tbe 1\Iaryland, asking that Fort McHenry Militat·y lleservation at Committee on the District of Columbia. the port of Baltimore be maintained by the United States as a 4595. By l\1r. PERKINS: Petition of citizens of Edgewater, national park; to the Committee on Military Affah·s. N. J., and vicinity, protesting against the treaties; to the Com­ Also, a memorial of the Legi lature of the State of Maryland, mittee on Foreign Affairs. asking that the Indianhead naval proving ground be reestab­ lished; to the Committee on Naval .Affairs. SENATE. PRIVATE BILLS AND RESOLUTIONS. Und€r clause 1 of Rule XXII, pri-rnte bills and resolutions TUESDAY, March 14, 19~~. were introduced and severally referred as follows: (Legis:Wtive ot Thu1·sday, Ma-reh 9, 1922.) By 1\fr. CRAGO: A bill (H. R. 10879) for the relief of Selec­ d(jy man & Kendall; to the Committee on Claims.- The Senate met in open executi\re session at 12 o'clock merid­ By Mr. FULLER: A bill (H. R. 1088.0) granting a pension to ian, {)n the expiration of the recess. Harriett A. Blagg; to the Committee on Invalid Pensions. As in legislative session, By ·Mr. GOULD: A bill (H. R. 10881) granting an increase {)f pen ion to Charles A. Waters; to the Committee on Pensions. REINTERMEJ'II"'T OF SOLDIER "DEAD. By l\Ir. GREE~E of Vermont: A bill (H. R. 10882) granting a The VICE PRESIDENT laid before the Senate a communica­ pension to Lottie M. Bettis; to the Committee on Invalid Pen­ tion from the Quartermaster General of the Army, transmitting s!ons. lists of American soldier dead returned from · ov€rseas, to be By l\lr. JO~SO~ of Washington (by request) : A bill (H. R. Feinterred in the Arlington National Cemetery, Thursday, March 10883) authorizing reconye~ran ce of land to R. A. Power; to the 16, 1922, at 2.30 p. m., which was ordered to lie on the table for Committee on l\lilitary Affairs. the information of Senators. By l\lr. KELLY of Pennsylvania: A bill (H R. 10884) grant­ ing a pension to Ocie Billet; to the Committee on Invalid PETITIONS AND MEMORIALS. Pensions. 1\lr. LODGE presented a resolution adopted by the board of By 1\Ir. MAcGREGOR: A bill (H. R. ,10085) granting a pen­ aldermen of Fall River, 1\Iass., favoring the passage of tl1e so­ sion to Mark l\litchell; to the Committee on Invalid Pensions. called soldiers' bonus bill, which was referred to the Committee _ By 1\Ir. l\IONTOYA: A bill (H. R. 10886) granting a pension on Finance. to h."'tta W. Oa · to the Committee on Pensions. He also presented resolutions of the Foreign Policy Associa­ By Mr. O'BRIEN: A bill (H. R. 10887) for the relief of tion of Massachusetts; the Brotherhood of St. Michael , of Rosa D. Stallman; to the Committee on War Claims. Marblehead; ·Massachusetts section of the National Civic Fed­ By l\Ir. PADGETT: A bill (H. R. 10888) granting a pension eration, of Boston; the Worcester Conference of Universalists, to John D. Hayes; to the Committee on Invalid Pensions. of Worcester; women of the Protestant churches of Beverly ; By Mr. REECE: A bill (H. R. 10889) granting a pension to the Boston Ministers' Meeting (Congregational), of Boston; 'WHliam 1. Chester; to the Comn;littee on Pensions. the congregation of the Asbury First Methodist Episcopal Church, of Springfield; th€ Presbyterian Ministerial Association of Greater Boston, and the Men's Union of the First Cllnrch. PETITIONS, ETC. Old South (Congregational), of ·worcester, all in the State of Under .clause 1 of Rule XXII, petitions and papers -w-ere laid Massachusetts, fa:>oring the prompt ratification ()f the treaties on the Clerk's tlesk ancl referred as follows : prepared by the Conference -on Limitation of Armament, which 45 3. By the SPF...A .KER (by request) ~ Cablegram from were ordered to lie on the table. members of the .Municipal .Assembly of Porto Rico, protesting He also presented telegrams in tile nature of petitions from against Gov. Reily; to tlle Committee on Rules. the Kiwanis Clubs of North Adams, Pittsfield, Holyoke, and 4584. By Mr. ACKERMAN: Petition of .J. H. \Vilson and Boston, all in the State of Massachu etts, praying for the other residents of Rockaway, N. J., urging the immediate enact­ prompt ratification of the treaties prepared by the Conference ment of an adequate tariff law based upon American Yalua­ on Limitation of Armament, whiCh were ordered to lie on the tions; to the Committee on Ways and Means. table. 45 5. By .Mr. ANDREW of Massachu-setts :·Re olution adopted He also presented resolutions of the .State Directorate in the by Haverhill Chamber of Commerce, Haverhill, Mass., rec.om­ District of Columbia; General Phil Sheridan Council, of Ja­ mending legislation to remove the present inequitable burden of maica . Plain, 1\fass.; and the Eighth Congressional District taxation; to the Committee on ,,.,.ay and Means. Branch, of Cambridge, Mass., all 'Of the American Associa lion 4586. By ~fr. BARBOUR: Petition of the Father's As ocia­ for the Recognition of the Irish Republic, protesting against tion of the \V ashington School, Oakland, Calif., indorsing H. R. the ratification of the so-called four-power treaty, which were 7 and S. 1017; t-o tbe Committee on Education. ot·dered to lie on the table. 4587. By 1\lr. BROWNE of 'Visconsin: Petition of ex-service 1r. CAPPER presi!nted telegrams in the nature of petitions of men of \Vausau, Wis., all partieipants in the late war, placing the Kiwanis Clubs of Topeka, Augusta, and Girard, all in the theD1selves .on re-cord. in fa-vor of a ·oldiel:s' bonus in -such form State of Kansas, praying fot· the prompt ratification of the as will bring immediate financial relief to th