1928 CONGRESSIONAL RECORD-SENATE 6485 attempts must necessarily be, their sincerest regret at the passing from SENATE time into eternity of their distingui~ fellow member, United States Senator ANDRIEUS A. JoNES, and their deep sympathy for the bereaved MoNDAY, .April16, 1928 family. Because of his warm heart, his interest in the welfare of his fellows, ReY. James W. Morri~ D. D., assistant rector of the Church his love :tor his profession and all engaged therein, Senator JoNEs had of the Epiphany of the city of Washington, offered the follow­ formed a close personal friendship with every attorney practicing at the ing prayer: Las Vegas bar; many such friendships bearing the test of long years Almighty and everlasting God, high and ·mighty ruler of the and growing even deeper. But whether the relationship extended over universe, who dost from Thy throne behold all the dwellers one year or forty, there is not a lawyer in the city or district who does upon earth, graciously condescend to us who come now before not feel a deep sense of personal loss in the death of Senator Jo:sEs. Thy Divine 1\Iajesty to praise Thee and to worship Thee. Now when hls abilities are being everjwhere extolled, when the Accept the adoration of our hearts and receive our grateful greatest of the land unite to do him honor, resolutions are being adopted, acknowledgment of the abounding blessings that Thou bast which we sincerely ind'orse, dealing with his achievements, high charac­ -vouchsafed to us and to our great Nation. ter, broad statesmanship, and splendid qualities, we, the associates of Look with favor upon Thy servants, who assemble in this the profession he so highly honored, the intimates of the home town he place charged with grave responsibilities affecting the peace, so deeply loved, tbe friends of the family whose sorrow is our sorrow, welfare, and ordered governance of our country. feel that it is fitting that we should confine ourselves Chiefly to the Endue them with wisdom and spiritual understanding, with ~rsonal and professional relationship. devotedness and undiscouraged patience in the discharge of As the members of the Las Vt>gas bar, mourning that his presence their high tasks. Grant that they may both perceive and know shall no more be with us, we shall evt>r carry into our work and our what they ought to do, and also have grace and power faithfully life the inspiration of his high ideals, tireless industry and unswerving to fulfill the same. devotion to ethical principles. We ask it all in bumble acknowledgment of our own unde­ As citizens of Las Vegas, who can appreciate more fully his public­ servings, but with sincere dependence upon the perfections and spiritcdneE!s, his loyalty, his worth to the community; as residents o:f compassions of Thy Son, Jesus Christ our Saviour. Nt>w Mexico, who can understand more clearly his devotion to the interests of the State through a period of nearly half a century ; as The Chief Clerk proceeded to read the Journal of the pro­ loya., components of this great American commonwealth, who is there ceedings of Friday last, when, on request of Mr. CuRTIS and to take more pride than ourselves in the notable public actions that have by unanimous . consent, the further reading was dispensed with made the name of ANDRIEUS A. JoNEs well-nigh a household word through­ and the Journal was approved. out the land? But,' in the personal equation, as friends., who could so MESS.AGE FROM THE HOUSE well know his kindness of heart, his generosity, his readiness at all A message from the House of Representatives, by Mr. Halti­ times to serve his fellow man, it is all in liis motto--" He profits most gan, one of its clerks, announced that the House had agreed who serves the best "-it is all in his creed : to the amendments of the Senate to the bill (H. R. 4702) to So many words, so many creeds, remove the charge of desertion from the record of Benjamin S. So many ways that wind and wind, McHenry. Wben just the art of being kind The message also announced that the House bad passed the Is all this old world needs. bill ( S. 2900) granting pensions and increase of pensions to How words fail when we seek to. express the sympathy we feel for certain soldiers and sailors of the Civil ·war and certain the members of the bereaved family! We grieve with them, for though widows and dependent relatives of such soldiers and sailors, necessarily in lesse1• degree, yet in a very considerable measure, their with amendments, in wllicb it requested the concurrence of loss is our loss. the Senate. The message further announced that the House had passed The sincere sorrow throughout the State of New Mexico occa­ the following bills, in whlch it requested the concurrence of the sioned by the death of the Senator was a direct testimonial of Senate: the deep regard and esteem in which be was held by the citizens H. R. 12381. ·An act granting pensions and increase of pen­ of his adopted State. sions to certain soldiers and sailors of the Regular Army and We speak not of him because be may have acquired wealth or Navy, etc., and certain soldiers and sailors of wars othex than material success in his career, but rather in connection with the Civ.il War, and to widows of such soldiers and sailors; and what he stood for and what be accomplished, which made the H. R. 12875. An act making appropriations for the legislattve position of his fellow man better in the affairs of life, and branch of the Government for the fiscal year ending June 30, which gave a better spirit of consideration for the welfare of 1929, and for other purposes. all the people. His faithful service rendered is the most fitting eulogy, and gives him an enduring place in the history of his ENROLLED BILLS SIGNED State and of the Nation. There is no doubt but that the people The message also announced that the Speaker had affixed of New Mexico have lost one of their ablest citizens, and one his signatare to the following enrolled bills, and they were who bad been a devoted champion of their cause. sjgned by the .Vice President: ' At the funeral in his home town of Las Vegas there were no S. 3224. An act to extend the provisions of the forest ex­ lines of race, creed, or partisanship. All leaders of prominence Change act, approved. March '20, 1922 ( 42 Stat. 465), to the in the State were present to pay homage and honor to the Crater National Forest, in the State of Oregon; and · dead stateSIIlftn. Among them were the escort of eight United S. 3225. An act to enlarge the boundaries of the Crater States ·senators and ten Members of OOngress, the Governor of National Forest. New Mexico, and seven ex-governors. It has been truthfully O.ALL OF THE BOLL said that his neighbors not only took pride in his achievements, but loved him as a citizen. Among the mourners was ibe ven­ Mr. CURTIS. Mr. President, I suggest the absence 9f a erable Judge E. V. Long, 92 years old, the man who as a district quorum. judge in Indiana bad admitted the late Thomas W. Marshall The VICE PRESIDENT. The clerk will call the roll. to the prnctice of law. Judge Long, for four decades was a The legislative clerk called the roll, and the following Sena­ firm friend and political adviser of the deceased Senator. tors answered to their names: I appear to-day as one who sincerely mourns the death of Ashurst Fletcher McKellar Sheppard Bayard Frazier McLean Shipstead ANDRIEUB A. JONES, for I loved, respected, and admired him. I Bingham George McMaster looked upon him as a statesman of the first rank from out of Black Gerry McNary ~~~~sge the West, and I feel that in his death I suffered the personal Blaine Glass Mayfield Smith Blease Goff · Metcalf Steiwer loss of a firm friend. Borah Gooding Moses Step-hens Bratton Gould Neely Swanson Mr. MORROW resumed the chair as Speaker pro tempore. Brookhart Greene . Norbeck Thomas Broussard Hale Norris Tydings Bruce Barris Nye Tyson ADJOURNMENT Capper Hartison Oddie Vandenberg The SPEAKER pro tempore. In accordance with the resolu­ Caraway Hawes Overman Wagner · Copeland Phipps Walsh, Mass. tion previously adopted, and as a further mark of respect to Couzens ~!K~n Pine Walsh, Mont. tbe memory of the deceased, the House now stan.ds adjourned Curtis Johnson Pittman Warren until to-morrow, Monday, at 12 o'clock noon. Cutting Jones Ransdell Waterman Dale · Kendrick Reed, Pa. Wheeler Accordingly (at 2 o'clock and 35 minutes p. m.) the House Dill Keyes . Robinson, Ind. adjourned until to-morrow, Monday, April 16, 1928, at 12 o'clock Edge Kin<' Sackett noon. . li'elil8 La ~ollette Schall 6486 CONGRESSIONAL RECORD-SENATE APRIL 16 l\fr. CARAW.A.Y. I wish to announce that my colleague the with a banquet to Neval H. Thomas, head of the association, and a senior Senator from Arkansas [Mr. RoBINSON] is necessarily mass meeting at the Suburban Gardens Sunday, when Clarence Dar­ absent owing to illness. row wm be the principal speaker. The VICE PRESIDENT. Eighty-one Senntors having an­ swered to their names, a quorum is present. WASHINGTON, D. C., April 13, 1928. Hon. COLE L. BLEASEJ, SENATOR FROM OHIO . 1\Ir. FESS. Mr. President, I present the credentials of CYRus DEAR Srn: In view of your recent utterances, as published in the LocHER. Senator designate from Ohio, which I ask may be read. local papers of this city relative to Sect·etary Hoover putting the Tlle ' CE PRESIDEN'l'. The clerk will read the credentials. negro clerks in the Department of Commerce in the same rooms with The Chief Clerk read the credentials, as follows: the white clerks, I would like to call your attention to a similar order In the name and by the authority of the State of Ohio, Vic Donahey of Sect·etary Work, of the Department of the Interior, which went into gover!}or of said State effect to-day-April 13. 'l'o all to tclwm these presents sha.ll come, greeting: A negro girl typist in Division C of the General Land Office was Know ye that whereas CYRUS LOCHER, of Cuyahoga County, has been sent down to the stenographic division, chief of same being a Mr. duly appointed to the office of Senator from the State of Ohio to repre­ Phillips, but the girls in this division put up such a " kick " that the sent the State of Ohio in the Senate of the United States for a term negro girl was switched to Division E, the survey divison. ending when a successor is elected and qualified: Partitions are being taken down between rooms so as to make them Therefore, by virtue of the authority vested in the governor by the larger, and white clerks are being put in the same rooms with the constitution, and in pursuance of a provision of the statutes, I do negro clet·ks. This is being done in Divisions C and F of the General Land Office. herPby commission him, the said CYRUS LOCHEll, to be Senator from the State of Ohio to represent the State of Ohio in the Senate of the This \Yas done over the vigorous protest of Commissioner Spry, of United States, authorizing and empowering him to execute and dis­ the Land Office. charge, all and singular, the duties appertaining to said office, and to The Land Office at its best is a regular hell hole. (See inclosed cir­ enjoy all the privileges and immunities thereof. culars, same being a true statement of facts.) In testimony whereof I have hereunto subscribed by name and caused This order w~s . done, of course, to catch the " nigger" vote. the great seal of the State of Ohio to be affixed at Columbus this 4th It is bad enough to work for starvation wages without working with day of April, A. D. 1928. a lot of negroes. [SilAL.] VIC DONAHBIY, Very respectfully, By the governor: (Signf'd) CLABIINCE J. BROWN, Mr. BLEASE. The two articles referred to in the letter I Secretary of State. ask permission to have printed in the RECORD without reading. The VICE PRESIDENT. The credentials will be placed on The VICE PRESIDENT. Without objection, it is so ordered. file. The articles are are follows . l\Ir. FESS. Mr. President, the Senator designate is present RO'l'TENNESS AND TERitORIS!\f IN THill ~AND OFFICE-RING RULED-A in the Chamber and ready to take the oath of office. HOLDOVER FROM THE MIDDLE AGES Mr. BRATTON. Mr. President, may I inquire of the Senator from Ohio whether the State Legislature of Ohio has enacted Bully McGee, chief of the mineral division, General Land Office, an a ignomnt bully, spen, 1928] file clerks were raised last January to $2,100. He tried to keep this J:OLQRED LAND OFFICE SEGREGATION TO ENl>--PARTITlONS HAVE BEEN secret, but murder will out. All file clerks doing the same kinds of REMOVED, NEGRO ELKS HAVE BEEN TOLD work and working on the same files. Officials of the Civil Liberties Bureau of the Grand Lodge of Colored Adjudicating clerks in the said mineral division doing the same kind Elks yesterday expected abolition of segregation of negro clerks in the of work, classified accordingly as how they stood in with the duce, Land Office of the Interior Department early this week. Partitions ranging from grade 2 to grade 7, all doing the same kind of work in which have separated colQred and white employees in the office have the same room, with desks side by side. Clerks who incur tbe dis­ pleasure of the chief are blacklisted. Last spring, when whol<'salc been removed with general expressions of approval, it was reported. discharges of the clerks were made, clerks not standing in with the 'rbe fight for abolition of segeegation in this department has been l£>d by Gretchen McRae, of Colorado · Springs, Colo., the home State of plucking ring, controlled by Mussolini Obenchain, were kicked out, no Secretary Hubert Work, of the Interior Department. She was elected matter what their ratings were. For instance, in one division, whose ehief was apparently a fair man, a clet·k was ~iven a rating of 90 ; recently to the executive board of the Association for Advancement of when same was revised by Obenchain, said rating was cut to 70, and Colored People. As a stenographer in the Land Office, her fight for ending of segr·egatiou there bas been carried on with an intrepidity clerk was kicked out of the service. which bas won popularity to the cause. APPEAL BOARD A ' FARCE-YOU APPEA.J, FROM: PHTT,IP DRUNK TO PHILIP The National Association for Advancement of Colored People an­ SOBER nounced last night renewal of its drive for abolition of segregation Clerks who appealed to the board who did not stand in the ring were in the Treasury Department, where Assistant Secretary Ogden Mills blacklisted. The steam roller was put in action, and the appealing bas had the matter under advisement. The drive will be lauuched clerk flattened out, and appeal rejected. 1928 CONGRESS! ON AL RECORD-SENATE 6487 The board, consisting of a Judge Harvey, a Judge (so ealled) Pat­ of which the oil and gas leasing section is a part. This is a ma ter of terson, and an ex-file clerk named Crowley, pot up a great exhibition record and can be easily verified. of running the said roller. (They certainly obeyed orders.) Mr. Root Does Mr. Work know of this? I wonder. couldn't have done better. In view of the Teapot Dome, Sinclair, Doheny, Fall, Denby, and other Everyone here who has been to some night lnw school for one term­ oily scandals connected with the Interior Department, an account of there are 11 in town, counting the Y. M. C. A. and the K. C.'s-ls called this person of unsavory record being selected and put at the bead ot a judge. the oil and gas leasing division of the land office would make some Clerks not standing in with the ring had their appeals framed up good Democratic campaign material if printed in the newspapers and denied. throughout the country just before the election. Thin.k it over. The whole atmosphere seems to be "trying to get something on I know a number of antiadministration Congressmen w'ho would like some one." to get hold of this information and would broadcast same. Bond, the former chief clerk, spent his time doing fancy-design work I have been informed that it is common talk in the land office that in different colored ink at his desk to while the time away, and also Mr. McGee is the inside man for some of the outside oil promoters, said spent his time trying to get even with clerks he has a grudge against, promoters being represented by certain attorneys in this city who hang held grudge~ against clerks for years waiting for a chance to get him. about his office. CHIEF M'GEE A BIG CROOK Very respectfully, At one time McGee was chief of Division G (railroad or contest divi­ ------, sion), but was kicked out of the office for accepting bribes from the rail­ Attorney at Law. roads in relation to allowing their cases before his division. Mr. BLEASE. I understand that Mr. Hubert Work is the OBENC'HA..IN THE GREAT CLASSIFIER campaign manager for Mr. Hoover in the Interior Department, and that Mr. Ogden 1\Iills is the campaign manager for Mr. Obenchain, the great classifier, classified himself from $1,800 to $5,500 Hoover in the Treasury Department. For eight years the clerks with a new title thrown in (special administrative officer) ; this name in the departments have been permitted to work along just as was painted on the door. But when Judge BLANTON got after him tlrey they have been working without friction and without trouble, changed his name to supervisor and cut ofr $1,000; in other words, but since Mr. Hoover has announced himself as a candidate for shaved his title and salary a littl~. President and wants to secure the negro vote in the doubtful ECONOMY AS SET OUT IN THE J.AND OFFICE--WONDERFUL States, not only by him but through his influence with his 'l'be economy program as set out in the land office--all members of the campaign managers and assistants in other departments of the ring and their favorites bad their salaries increased, bot the little fellow present administration there has begun, under the direction of who needed it most was close-shaved and reduced to make the money go Mr. Hoover, a systematic plan to humiliate white girls from round; you know the Good Book says, "To him who bath"; the man whatever part of this Nation they may happen to come by in the gutter says, " Them that has, gits." placing some of them in the same category with negro em· All kinds of boards were created to take of the inner circle, including ployees not only in the offices but in closets in the various the commissioner, who was jumped from $5,000 to $7,000, a nice salary departments. for a rubber-stamp job, and Mussolini Obenchain runs the office. I think, Mr. President, that the time will come, if it has not THE CLASSIFICATION BOARD OF THE LAND OFFICE yet arrived, when t11e white people of this country will wake The following "worthies" constitute the classification board, to wit: up to the serious attack that is being made upon them as a race Messrs. Parrott, Mcrhaul, and the chairman, Obenchain. They classified by this attempt at social equality on the part of certain poll· themselves from $1,000 to $5,500. ticians, who, regardless of their respect for the white race, are willing, in order to get a few delegates from certain sections of A GREAT SALARY G-RAB the country, to go to any extent to humiliate the white girls In order to spread out the money they squeezed the little fellow; some who are forced to work in the departments for ~ living. My got $1 per month raise, and a number got only 25 cents. purpose in mserting these letters in the REOORD is to call WHAT DO YOU THINK OF TIDS FOR CLASSIFICATION? attention to that fact, in order that tb,e people may be informed, In one room an adjudicating clerk, who did not stand in with the if they are not already informed, of the condition in some of gang, was given a low grade ; other clerks in the same room and doing the departments of the Government at Washington. the same kind of work and no better and as much were classified three STREET-RAILWAY MERGER IN THE DISTRICT (H. DOC. 232) grades higher. When asked why, was told by McGee that he was a The VICE PRESIDENT laid before the Senate a communi· rotten clerk; said clerk then saw his Senator, who got busy; the clerk cation from the chairman of the Public Utilities Commission of then went back to McGee, who gave him a fine letter of recommenda­ the District of Columbia, transmitting, pursuant to authority tion ; clerk on strength of same wa-s promoted. He was a rotten clerk contained in the act approved March 4, 1925, a street-railway on Monday and a fine clerk on Thursday, same week. merger agreement under date of Aptil 7, 1928, by and between, Drunken clerks out of office for weeks get sick leave 0. K'd ; other the Washington Railway & Electric Co., the Capital Traction clerks, not standing in with the chief, but who are honest and sober and Co., and Mr_ Harley P. Wilson, owner of 98 per cent of the who are really sick, have the department doctor sent out to their stock of the Washington Rapid Transit Co., which, with the rooms to try and get them. accompanying pape~s, was referred to the Committee on the McGee stays in office after hours, goes through clerks' desks, trying District of Columbia. to get something on them ; was caught red-handed. A. OGDEN PIERROT Stool pigeons everywhere who report to the duce. It is said the keeper makes his -daily report upstairs. A regular hell hole. The VICE PRESIDENT laid before the Senate a communica. tion from the Acting Secretary of Commerce, transmitting a POSTSCDIPT draft of proposed legislation for the relief of A. Ogden Pierrot, We have a new chief clerk, a Mr. Gauze (Obenchain's hand-picked temporary special disbursing agent of the Bureau of Foreign man). When Mr. Gauze, our new chief clerk, was installed, a reception and Domestic Commerce, which, with the accompanying d!:aft was held in his office, and special invitations were sent out. It was of a bill, was referred to the Committee on Claims. given out that only those that " stood in" were wanted; the rest of DISPOSITION OF USELESS PAPERS the office force were not wanted-a close corporation. When Mr. Gauze was asked why, said it was Mr. Obenchain's suggestion and command. The VICE PRESIDENT laid before the Senate a communi· Old soldiers all, for they seem to know the old army game--never cation from the Assistant Secretary of Labor, transmitting, give a sucker an even break. pursuant to law, a list of miscellaneous files in the offices of the department which are not needed in the conduct of business WASHINGTON, D. C., October 12, 191!:1. and have no historic value or permanent interest, and asking for action looking to their disposition, which was referred to a. Mr. JOSEPH F. GARTLAND, Joint Select Committee on the Disposition of Useless Papers in Chief Inspector, lt~terior Department, Washington, D. c. the Executive Departments. MY DEAR SIR: In view of recent developments in various "courts " . The VICE PRESIDENT appointed Mr. CouZENs· and Mr. throughout the country relative to oil and gas land suits, it may be of CoPELAND members of the committee on the part of the Senate. some interest to yon, as chief inspector of the Interior Department, to know the reputation of the chief of the mineral division of the General PETITIONS AND MEMORIALS Land Office, of which the oil and gas leasing section is a part, chief of The VICE PRESIDENT laid before the Senate a letter, in same being a 'Villiam J". McGee. the nature of a petition, from the Central Branch, Young A number of years ago Mr. McGee was suspended for over a year and Woman's Christian Association, of Philadelphia, Pa., praying then kicked out of the office, when he was chief of the railroad division, for the passage of the so-called Walsh-MacGregor resolution for accepting money from the railroads for favoring and allowing their relative to the uniting of separated families under the immi­ cases, which were before his division. However, by some mysterious gration law, which was referred to the Committee on lmmigra· influence he was reinstated and late_r made chief of the mineral division, tion. "6488 CONGRESSIONAL RECORD-SENATE - APRIL 16 The VICE PRESIDENT also laid before tlie Senate a letter, Whereas gates have been placed in the highway which are an in the nature of a petition, from the executive board of the obstruction, narrowing the highway from 33 feet to 18 feet and causing National Housewives (Inc.), praying for the establishment in many accidents ; and the President's Cabinet of a post known as home secretary, with Whereas a recent decision of the court of appeals which I offer a department to be devoted to matters of interest to the home a~ evidence, plainly states that the people's rights are ~·eserved in this makers of the United States, which was referred to the Commit­ h1ghway : Therefore be it tee on Education and Labor. Resolved, That the highway committee of the board of supervisors Mr. WARREN presented resolutions adopted by the Chamber of Orange County request United States Senators CoPELAND and of Commerce of Casper, the Commercial Club of Sheridan WAGNER and Congressman FISH to use their best efforts to have the the Kiwanis Club of Douglas, and the Rotary Club of Mid~ permit renewed so the supprintendent of public works may construct west, all in tbe State of Wyoming, praying for the passage of the highway across the reservation provided for by an act of the legislation to pfovide for aided and directed settlement on Legislature of the State of . Federal reclamation pt·ojects, which were referred to the Com­ CopiPs of this resolution to be forwarded to Congressman FISH, mittee on Irrigation and Reclamation. United States Senators COPELAND and WAGNER, and also Colonel Greene. l\1r. COPELAND pre··ented a petition of sundry citizens of Adopted. White Plains, Mount Vernon, and vicinity, all in the State STATE OF NEW YORK, ORANGE COUNTY, of New York, praying for the passage of the so-called Copeland­ OFFICE OF THE CLERK OF THE BOARD OF SUPERVISORS. ' Wainwright bill, providing recognition of the yellow-fever This is to certify that I, George F. Gregg, clerk of the board of heroes of 1900, which was referred to the Committee on supervisors of said county of Orange, have compared the foregoing Education and Labor. copy of resolution with the original resolution now on file in the office Mr. WALSH. of Massachusetts presented petitions of sundry and which was passed by the board of supervisors of said county of citizens of Boston and Springfield, Mass., praying for the Orange on the lOth day of April, 1928, and that the same is a correct prompt passage of legislation granting increased pensions to and true transcript of such original resolution and the whole thereof. Civil War. veterans and their widows, which were referred to In witness whereof I have hereunto set my hand and the official seal the Committee on Pensions. of said board of supervisors this lOth day of April, 1928. He also presented numerous letters., in the nature of memo­ (SEAL.) _ . GEORGE F. GREGG, rials, from chambers of commerce, lodges, hospitals, associa­ Clerk of the Board of Bupervisora of the Oountv of Orange. tions, business firms, and sundry citizens, all of the State of FARM RELIEF Massachusetts, remonstrating against the passage of the bill Mr. BROOKHART. Mr. President, I have here a telegram ( S. 1752) to regulate the manufacture and sale of stamped en­ from the Nebraska Wheat Growers Association in reference to velopes, which were referred to the Committee on Post Offices the McNary-Haugen bill, which I send to the desk and ask to and Post Roads. have read. Mr. McLEAN presented a letter and paper in the nature of The VICE PRESIDEN'l\ Without objection, the clerk will petitions from Branch No. 60, National Association of Letter read, as requested. Carriers, of Stamford, and sundry postal employees, of Wil­ The Chief Clerk read as follows : limantic, all in the State of Connecticut, praying for the passage of Senate bill 1727, the so-called Dale retirement bill, which LINCOLN, NEBR., April 14, 1928. were referred to the Committee on Civil Service. SMITH W. BROOKHART, He also presented a letter in the nature of a petition from UnAted State Senate, Washington, D. d.: Seicheprey Post, No. 2, American Legion Auxiliary of Bristol Declaration of policy McNary-Haugen bill recites "It is hereby de­ Conn., praying for the passage of the so-called Capper-Johnso~ clared to be the policy of Congress to promote the orderly marketing of agriculture commodities and to further the organization of producers bill, to provide further ~or the national security and defense which was referred to the Committee on Military Affairs. ' of such commodities into cooperative associations." Telegram from He also presented a resoluti-on adopted by the convention of Senator McNARY says loan features to cooperatives in se<.:tion 5 elimi­ the Connecticut State Dental Association, at New Haven, Conn., nated by the Senate at request of Des Moines meeting. With Joan favoring the passage of Senate bill 3356, providing for the co­ features eliminated the declaration of policy is a hoax and a fraud. ordination of the public-health activities of the Government, Who at Des Moines wishes to deny the farmers financial assistance in whjch was referred to the Committee on Commerce. developing cooperative marketing? No cooperative marketina associa­ He also presented a telegram and papers in the nature of tions as defined in the bill were repre-sented at Des Moines"nor were petitions from the Sunday Noon Club, Second Congregational they invited. If the House concurs with the Senate in refusing to aid Clmrch, of Waterbury; the Connecticut League of Women cooperatives, majority of wheat poEngland Tobacco Growers' Association, at Glastonbury, Comi., protesting Mr. HAWES. Mr. President, I ask unanimous consent to against the passage of House bill 9195, providing for the im­ have inserted in the RECORD two editorials on the matter of portation of cigars, cheroots, and cigarettes in quantities of less flood control, one from the St. Louis Globe-Democrat of April than 3,000 in a single package from the island of Cuba, which 13, 1928, and the other from the Washington Post of April 16 was referred to the Committee on Post Office.s and Post Roads. 1928. , Mr. WAGNER. I present a resolution adopted by the There being no objection, the editorials were ordered to be highway committee of the board of supervisors of Orange printed in the RECORD, as follows: County, N. Y., which I ask may be printed in the RECORD [Editorial on flood control legislation, taken from the St. Louis Globe­ and refeued to the Committee on Military Affairs. Democrat of date April 13, 1928] There being no objection, the resolution w~s referred to the GAS ATTACK ON FLOOD CONTROL Committee on Milita1·y Affairs and ordered to be printed in the RECORD, as follows : Mr. MARTIN MADDEN, of Illinois, chairman of the Appropriations Com­ mittee of the House of Representatives, appears to be greatly exer­ Whereas there is a public highway running through the military cised over the flood control bill that lws passed the Senate and that reservation at West Point; and has been favorably reported in tbe House. He bears, we are told, that Whereas the right of public occupancy of the highway now exist­ speculators are buying lands in the Mississippi Valley that will be ing or which may exist is reserved to the people when the land was benefited by the project and thinks the bill as it stands presents g1·eat ceded to the United States Government by the State of New York; opportunities for graft and extravagance. He intimates that Peesident and Coolidge is alarmed by possibilities of expenditures running up to Whet·eas this highway has been closed to the public without written $1,500,000,000, and we gather the impressiou that, in his opinion, the ·authority from the War Department; and dickens will be to pay if something isn't done to safeguard the revenues. 1928 CONGRESSIONAL RECORD-SENATE 6489 Is there any occasion for such alarm or for any alarm? We can control to end, it every stream eventuaUy reaching the Mississippi t:s to see none. It seems to be a matter of arousing public uneasiness as a be bottled at the source? means of frightening the House and forcing it to make amendments Between an inadequate flood-control plan and an unlimited raid upon to the bill in line with the ideas of the President and Mr. MADDEN. the Treasury there is a middle ground of effective tl.ood control, without The bill provides that the project "shall be prosecuted by the Missis­ extravagant distribution of "pol"k." It is the duty of Congress to sippi Rtver Commission under the direction of the Secretary of War find this middle ground. No provision should be incorporated in the and supervision of the Chief of Engineers.'' The expenditures there­ pending bill which could be cited later as a pledge for constructing any fore will be controlled entirely by permanent governmental agencies auxiliary works on any tributary. The control ~roblem bas not been which are subject to the President of the United States and which for solved yet. Months and probably years of study must be made before long years have had charge of river improvements. the continental water system called the Mississippi can be controlled. A.s to the lands to be acquired, they are to be obtained through con­ The most that should be done at present is to authorize surveys of the demnation proceedings instituted by the Secretary of War in the United tributaries that unquestionably contribute most of the flood waters, and States district courts having jurisdiction in the localities where the this authorization should be accompanied by a reservation that will property is situated, and the court in each instance is required to ap­ unmistakably "relieve Congress from undertaking any works on any of point commissioners to appraise the property and assess the compensa­ these rivers, pending further study of the entire problem. tion. The Secretary of War, however, is authorized to purchase lands REPORTS OF COMMITTEES necessary to the project when th~ are offered by the owne1·s at a reasonable price. It is provided, moreover, that when the construction M.r. STEPHENS, from the Committee on Claims, to which will result in benefits to any persons or corporati<>ns, m'Unlcipal or was refen·ed the bill ( S. 1645) for reimbursement of W. H. private, " such benefits sball be taken into consideration by way of Talbert, reported it without amendment and submitted a report reducing the amount of compensation to be paid." (No. 800) thereon. .All of this is in accordance with standard procedure, and it surely Mr. SHEPPARD, ·from the Committee on Military Affairs, to provides sufficient safeguards against any speculative enterprises and which was referred the-bill (H. R. 9047) to authorize appropria­ against graft of any sort. It makes the Secretary of War and the tions for the construction of roads at the Presidio of San Fran­ Federal courts responsible for the acquirement of the lands essential cisco, Calif., reported it without amendment and submitted a to the project. Can we have any more dependable agencies? The report (No. 801) thereon. lands to be obtained will be designated in the plans decided upon by Mr. FLETCHER, from tbe Committee on Military Affairs, to the board of review which is authorized to consider the two plans which was referred the bill ( S. 3463) to recognize commissioned presented by the Army engineers and the Mississippi River Commission service in the Philippine Constabulary in determining rights of and to adjust their differences, or, if it finds it necessary, to present officers of the Regular Army, reported it without amendment an original plan to Congress. It is assumed,. however, that it will take and submitted a report (No. 802) thereon. the plan of the Army engineers, the Jadwin plan, which is formally He also, from the same committee, to which was referred the adopted by the bill as the basis of consideration, and apply to it the bill (S. 162) to change the military record of William M. recommendations of the commission's plan where in any specl.tle detail Sherman, reported it with amendments and submitted a report it seems to be preferable. At any rate, with its final decision upon (No. 803) thereon. the plan the functions of this board apparently cea&e, and full authority Mr. BRATTON, from the Committee on Indian Affairs, to to carry out the plan is fixed in the governmental agencies above stated. which was referred the bill (H. R. 11479) to reserve certain How in this arrangem•ent there could be any extravagance of design lands on the public domain in Valencia County, N. :Mex., for the or of execution, or how it can be :regarded as opening the door to use and benefit of the Acoma Pueblo Indians, reported it without graft we are unable to 13ee. On the contrary, it seems to make sure amoodment and submitted a report (No. 804) thereon. that the design, in the first place, will be adequate and praeticable Mr. McMASTER, from the Committee on Claims, to which from the engineering standpoint, and, in the second place, that it will was referred the bill (S. 1433) for the relief of J. C. Peixotto, be executed under the direct and exclusive control of the Federal Gov­ reported it without amendment and submitted a report (No. ernment by permanent agencies of its own whose record has never been 805) thereon. stained by graft and who as engineers are more likely to avoid wasteful Mr. BAYARD, from the Committee on Claims, to which were ex-penditures than any other agencies to whom it could be intrusted. referred the following bills, reported them each without amend­ [Editorial on flood-control legislation, taken from the Washington Post ment and submitted reports thereon : of date Apn"l 16, 1928] A bfi! ( S. 1530) for the relief of Gilpin Construction Co. FLOOD LEGISLATION (Rept. No. 806) ; and Republican leaders In the House are anxious to bring about ebanges in A bill (H. R. 8487) to adjudicate the claims of homestead set­ the flood control bill in accordance with the wishes of President tlers on the drained Mud Lake bQttom, in the State of 1\!inne- ' Coolidge. If the leaders can not induce the committee in charge to sota (Rept. No. 807). . accept amendments they will make a fight on the floor. It is assumed Mr. BAYARD also, from the Committee on Claims, to which ) that the principal change proposed is that which would exempt tlte was referred .the bill ( S. 3809) conferring jurisdiction on the lower river States from financial contributions -to the cost of fiood con- Court of Claims of the United States or the district courts of ' . trol. Another modification desired is tbe elimination of the provision the United States to hear, adjudicate, and enter judgment on for surveys of the great tributaries Qf the Mississippi. It is feared the claim of A. Roy Knabenshue against the United States for · that if States and communities are exempted from contributions to the use or manufacture of an .invention of A. Roy Knabenshue ! the cost of flood control and surveys authorized for storage reservoirs covered by letters patent No. 858875, issued by the Patent Office 1 on the tributaries, a gigantic system of water storage will be developed, of the United States under date of July 2, 1907, reported it with with the burden falling entirely upon the United States Treasm·y. amendments and submitted a report (No. 808) thereon. The bill as pa.ssed by the Senate and approved by the House com­ Mr. BLACK, from the Committee on Claims, to which was mittee does not authorize any work except the control of the Mississippi referred the bill ( S. 2821) for the relief of Capt. Will H. Gor­ below Cairo. The cost of this work is estimated at $325,000,000, but don, reported it without amendment and submitted a report doubtless this figure will be exceeded. The bill recognizes the validity (No. 809) thereon. of the principle that communities relievest, but it makes an exception in the case of the referred the bill (S. 3862) authorizing J. T. Burnett, his hE:irs, lower Mississippi on account of the great expense already incurred by legal representatives, and assigns, to construct, maintain, and those cqmmunities. As to surveys of tributaries, the bill does not au­ operate a bridge across the Mississippi River, reported it with thorize any . works to be undertaken, nor does it exempt communities amendments and submitted a report (No. 821) thereon. from paying their share of the cost. He also, from the same committee, to which were referred Public opinion has been clearly expressed on the subject of Federal the following bills, reported them severally without amendment responsibility for controlling the Mississippi. The people of this' coun­ and submitted reports thereon : try do not wish to make flood control contingent upon the payment of A bill (H. R. 9485) authorizing Roy Clippinger, Ulys Pyle, part of the cost by the inhabitants of the endangered area. The coun­ Edgar Leathers, Groves K. Flescher, Carmen Fles<±er, their try asks that the Mississippi be controlled by the Government, and that heirs, legal representatives, and assigB.S, to construct, maintain, the work be paid for by the Government. The Senate's unanimoUB ac­ and operate a bridge across the Wabash River at or near Mc­ tion in passing the bill was plainly responsive to this publie sentiment. Gregors Ferry in White Cotmty, TIL (Rept. No. 810); It is also universally recognized that the Mississippi will never be A bill (H. R. 11203) granting the consent of Congress to the made entirely ~afe until its big tributaries are controlled. Each of counties· of Telfair and Coffee to construct, maintain, and oper­ these is a flood system by itself. But when it is proposed to include ate a free highway bridge across the Ocmulgee River at ()r near in the Mississippi control scheme a project for Government construction the present JackS

professed not to know to what offic@l' of the committee the payment, if is to be borne in mind that he is rated as tbe third richest man in so it might be termed, was made. Ameriea, surpassed in wealth. aceording to common repute, only by Having said something about $75,000 being a " maximum " he was John D. Rockefeller and Henry Ford; that all be was asked to give pressed for an explanation that was not forthcoming. It was, however, to the fund being raised and all he felt moved to give was $50,000. disclosed that the bonds came into the possession of Senator DU PoNT Yet he knew that Sinclair, who had got a concession from the Govern· and were by him turned over to the Empire Trust Co. of New York, ment out of which he testitled he expected to make $100,000,000 and a bank with which he was associated, in partial liquidation of an which was then und~r attack, had contributed more than five ~es aa 1 Indebtedness due it from the company. much as he (Mellon) put up. Moreover, if he felt any resentment at At the hearing now in progress Hays, perhaps startled by revela­ Hays's proposal that he (Mellon) should lend him.sclf to imposing upon tions made, appeared and read a statement professing a purpose to the public by holding out that he had contributed $50,000, when in i "tell all." By it was revealed that in addition to the $75,000 of bonds fact he had not, that he permit his name to be used as a cover to I already told of, Sinclair had delivered to Hays $185,000 more to be conceal a huge contrlbutlon by Sinclair--if he felt any resentment at 1 " used " to take care of the deficit, the transaction being something 1n Hays's taking any such sum from Sinclair, he expressed none. Neither, the nature of a loan. Just how the bonds were to be " used " and .how for that matter, did Butler. However, Mellon did not rebuke Hays for the situation was to be improved by paying one loan by another loan, accepting the bonds from Sinclair, he did not admonish him to return the most persistent cross-examination did not make clear. It was them, nor to desist from further attempting to "use " them with more contemplated, however, apparently, that the general campaign then 1n ·pliable pretended contributors. Neither, for that matter, did Butler. · progress would or might yield enough to take care of the advances But Mellon's delinquency does not end here. In the following spring , made by Sinclair, and possibly to return to him som'ething of his the suits were brought to cancel the leases:- "maximum " contribution of $75,000. Further evidence clearly dis­ The diligent counsel for the vernment, aided by the Secret Service t closed, however, how the bonds so liberally supplied by Sindair were of the Treasury, had traced bonds from the Continental Trading Co. , to be " used." Fifty thousand of them were given by Hays to one to Fall in the amount of $230,500, bnt had no direct and only rather 1 John T .• Pratt, a New York capitalist, since deceased, a member of the inconclusive evidence that they bad come from Sinclair, a weakness , Standard Oil group, who thereupon made a contribution to the com­ in the chain on the trial that afforded Judge Kennedy an excuse for mittee of like amount; $60,000 worth were sent to Fred W. Upham, deciding the case against the Government, now overcome th·rough the of Chicago, likewise gone to another world, and $25,000 to John W. loosed testimony of E'\terhart. It would have been an invaluable Weeks, then Secretary of War, who, too, has passed away. Hays piece of evidence in the etrort to show the fraudulent character of the professed entire ignorance of what Upham was to do with the bonds, Teapot Dome lease, that Sinclair had given to the Republican Na­ and specifically denied that he had any knowledge that they were to be tional Committee bonds in an amount not even approached by any , distributed to individuals in Chicago, each of whom was on receipt of other contributor, so far as Hays was able to recall, and five or six the same to make a contribution equal to the amount of the bonds times as large as Mr. Mellon himself gave, which bonds, like those received by him. Testimony from Chicago witnesses showed that that going to Fall, came from the same Continental Trading Co., organized, j was just what had been done with them by Upham. · it may be repeated, in the language of the Supreme Court, " for some , Hays explained that Pratt afterwards returned to him bonds equal illegitimate purpose." in amount to those he had received, and these, with the $50,000 It was only by the bare accident of the production of the fragile ~ remaining, never used were returned to Sinclair, leaving the com­ Pratt memorandum -that It came to light that Mellon knew of the I mittee indebted to him in the sum of $85,000, for which Hays became remarkable liberality of Sinclair to the Republican committee. The personally responsible, putting up with Sinclair securities of his own fact was not even dh!closed to the Senate committee, which, being as a pledge. Sinclair afterwards, however, unwilling that Hays ordered to find out what had become of the bonds. bad solicited the 1 should bear so heavy a burden, having suffered losses through specu~ aid of the Secretary of the Treasury in its task: and was assured by 1 lations in Sinclair stocks., returned the securities so pledged, making him that the Secret Service would be at his command. While the l the aggregate of Sinclair's contribution $160,000. subordinates of the Sec:retary were delving through heaps of coupons Then followed a dramatic chapter. In an effort to secure further and laboriously endeavoring to trace them to any of tbe parties con~ • light on the Pratt transaction representatives of his estate were called cerned in the Continental Trading Co. deal the head of the Treasury 1 who produced various documents relating to the affair, inclnding a was possessed of information •bat would have enabled the committee 1 small sheet of paper, evidently a unit from a memorandum pad, on vromptly to account for at least one block of $160,000. which were entries in the handwriting af Pratt, not clearly, referring There 1s another circumstance not to be overlooked in this connec- 1 to the transactions, ln the lower right-hand corner of which were the tion. Unquestionably an income tax is due the Government from the I names "Weeks," "Andy," "Butler," and "du Pont." It was a reason­ Continental Trading Co., whose transactions, carried on wholly within 1 able inference that "Andy" meant Andrew W. Mellon, that .. Butler" the United States, netted it over $3,000,~ profit. which tax is 1 was William M. Butler, succeeding Hays as chairman of the Republican enforceable against those receiving such profitt~, at least to the e~tent to 1 National Committee, and that they were in some manner connected which they shared respectively. with the bond transaction. Being called Mellon told that Hays had The prosecutor for the committee early in its work called the atten· i in the latter part of 1923 sent him a package containing $50,000 in tlon of the Secretary of 1he Treasury to this obligation to the Govern· ·

Liberty bonds, and had later come to Washington, as he had said over ment. It might be expected that the head of the department charged 1 the telephone, on advising the Secretary of the forwarding of the pack­ with the collection of the revenues of the Government would have been 1 age, he would. Calling on Mr. Secretary Mellon, aceording to the eager to lay before the committee every fact coming to his knowledge. latter Hays asked him to make a contribution in the amount of the likely to result in disclosing who got the gains of that malodorous com· bonds: which he did, though he declined to keep the bonds, sending pany and the amounts realized by each of the distributors. them to New York later (Hays being on his way West) by Parker There may or may not be anything in the coincidence that the 1 Gilbert as messenger. Butler told that Hays had offered him $25,000 Continental came into being, and the deal through whieh it ;was of the bonds, requesting a subscription of like amount, bnt Butler de­ enriched was carried Qn, in the very midst of the negotiations leading • clln.ed. Hays, being recalled and asked why he had not mentioned up to the leasing of the naval oil ~serves, and that tbe Republican in his former testimony his contact with Mellon and Butler in con­ National Committee got a good share of its peculations just about nection with the bonds, answered that he did not because the bonds the time the infamy of Teap~t Dome and the Elk Hills reserve was offered to them had not been used. Hays conceived that he was being shown. It may be that the student o£ sociology will find some entirely exculpated because he was unaware of the existence of the ground for believing that world-wlde conditions were such at that Continental Trading Co., or that the bonds in question had eome from particular time as that the moral fiber of mankind was weakened and that company, a fact he took pains to emphasize, and Mr. Mellon the virus of corruption had infected our business a.s wen as our politi­ likewise disclaimed any knowledge of its existence or its former -cal life. There is here unfolded the sordid story of · men standing ownership of the bonds. But he did know that Hays got them from high in the industrial field, intrusted by con1iding stockholders with Sinclair for Hays told him so, and he had some information, possibly gigantic interests, robbing the people by wbom they were elevated to derived from some other solll·ce, that Sinclair had put up in the positions of responsibility and whom they undertook to serve, and one neighborhood of $300,000 of bonds. of them, at least, using his share of the plunder to corrupt a high It will be well to bear in mind that the lease of the Teapot Dome to official of his Government and debauch a great political party. Whether Sinclair had been assailed in the Senate immediately upo• the fact of such a theory be sound or unsound, all will agree tbnt the occasion its execution being made public, that an investigation had been ordered, calls for an awakening, for a general demand for retribution, if our that it was in progress when Hays got the bonds and when part of social order is to be preserved or our institutions perpetuated. them were offered to Mellon and Butler. Yea, more, at that very time--about Decemfier 1, 1923--the so-called New Mexico witnesses THI!l GREAT LAKE&-ST. LAWRENCI!l WATERW.A.Y PROJECT were either on the stand testifying or were under subpama to appear. Mr. WHEELER. Mr. President, I present an address deliv- ' It will be recalled that it was they who told about Fall's sudden rise ered before the Boston Chamber of Commerce on April 12, 1928, from near bankruptcy to a position of a.ffi.uence and made a case that by Senator T. J. WALSH on the Great Lakes-St. Lawrence smacked of bribery of Fall. waterway project, which I ask may be printed in the REcoRD. In judging of the degree of culpability properly attributable to There being no objection, the address was ordered to be . Mellon in this affair, so discreditable to American political mora.l.B, it Pt:inted in the RECORD, as follows: 1928 CONGRESSIONAL RECORD-SENATE 6501 I appear before you to-day in disregard of a rule it has been found In relation to other facts relevant to the inquiry, including the market necessary to adopt, that I may be able to give to my official duties the for electrical energy to be developed incidentally, a feature to be re­ attention they require, not to deliver any public addresses while the ferred to more in detail hereafter. Senate is in session. I have yielded, however, to the courteous but The board of engineers, headed by Col. W. P. Wooten for the United urgent invitation of your committee to speak to you on this occasion States and by W. A. Bowden, chief engineer of the Department of Rail­ primarily because of my desire to canvass with you a subject in which ways and Canals, for the Canadian Government, reported favorably on my State and New England, in a way at least represented here have, the proposal to improve the navigability of the river with incidental if I have correctly appraised the situation, a common interest. development of the power resources, and the commission, by unanimous I refer to what is generally alluded to as the Great Lakes-St. action, warmly recommended the negotiation of a treaty to that end. Lawrence waterway, likely, in the near future, to engage the serious To indicate the enthusiasm with which the commission looked forward consideration of the Congress. I have chosen that part icular subject on to the inauguration of the enterprise, the following paragraphs from which to descant to-day not only because of the mutual interest to its '' Summary of conclusions " are quoted : which reference bas been made but because in public bearings, here­ " To sum up as briefly as possible its conclusions in the matter of after to be mentioned more particularly, some opposition to the project the proposed improvement of the St. Lawrence River between Lake on the part of Boston business interests was voiced, an attitude Ontario and Montreal, the commission finds nothing in the evidence to reflected in conversation with congressional representatives from this warrant the belief that ocean-going vessels of suitable draft could not section of the country. Without daring to hope that any argument of safely navigate the waters in question as well as the entire wat erway mine will bring conviction to your minds favorable to our cause, I yet from the Gulf of St. Lawrence to the bead of the Great Lakes, or that venture to direct your attention to the great enterprise that further such vessels would hesitate to do so if cargoes were available. study may induce yon generously to forward it. "It finds that of the various alternative routes mentioned from the The opposition of which notice has been taken may, for aught I interior to the seaboard, none offers advantages comparable with those know, have been entirely dissipated, as it certainly should have been, of the natural route by way of the St. Lawrence. by a report by the joint New England committee, consisting of five "As to the economic practicability of the waterway, the commission business men of standing and repute from each of these six States, finds that, without considering the probability of new traffic created by beaded by Hon. Charles R. Gow, of this city, unequivocally indorsing the opening of a water route to the seaboat·d, there exists to-day between the project. Be that as it may, I lay before you its salient features the region economically tributary to the Great Lakes and overseas points and the considerations that lead to the belief of those in whose name as well as between the same region and the Atlantic and Paci.fic sea­ I speak that it ought to be undertaken without delay. boards, a volume of outbound and inbound trade that might reasonably The project contemplates the improvement of the St. Lawrence River be expected to seek this route sufficient to justify the expense involved and the connecting waters between the Great Lakes so as to permit in its improvement. • . • • ocean-going ships to pass without breaking cargo from the sea to the remotest lake potts, to extend the ocean ways a thousand miles westward "It finds that the existing means of transportation between the tributary area in the United States and the seaboard arc altogether into the very heart of the continent. Due to the enterprise of the Cana­ inadequate; that the railroads have not kept pace with the needs of the dian Government, through the construction of the Weiland Canal and country, but that this does not apply to the Canadian side of the area works in the St. Lawrence above Montreal, it is now possible for vessels where railway development is still in advance of population and of draft not to exceed 14 feet to proceed in and out of the gulf and production. • • • to and from the interior, but in these days of Le-via-than bottoms the use of ships of such light draft in the transoceanic trade is economically "Experience bas demonstrated not only the tremendous importance impossible. · of water communication to the foreign commerce of any country but It is proposed so to overcome _the obstacles to navigation that vessels also the manifest advantages of liuking up rail and water routes. It drawing up to 25 feet may safely and expeditiously make the passage, is beyond question that the phenomenal industrial development of a depth that will accommodate practically all freighters and at least Great Britain in modern times bas been due very largely to her ready 88 to 90 per cent of the ships engaged in the foreign trade of the access to the sea. United States. Our neighbors on the north, as a unit in the improved " Great Britain has no resources of iron, yet she has built up gigantic waterway, are now engaged in the construction of an enlarged Weiland steel industries ; she grows no cotton, yet she supplies half the world Canal that will permit the passage from elthet• of the two lower lakes with cotton goods; she produces very little wool, yet her woolen mills to the other of such ships as those last mentioned, the work to be com­ have developed into an enormous industry. Her merchant marine sail pleted in 1930, at an estimated cost of '$115,000,000. the seven seas, bringing to her shores the raw materials she needs for For more than a cent1Jry statesmen and men of affairs of both _coun­ her industries, and carrying back the finished products. The sea, that tries directly concerned have given thought to the problem of utlllzing most efficient. most adaptable, most far-reaching, most economical of to the fullest extent possible this natural route of commerce to and thoroughfares, possessing practically all the advantages of land tt·ans­ from the great West. With the marvelous development of that region, a portation with few of its disadvantages, has made Great Britain development that has no parallel in history, the desire to see opened to prosperous. general navigation the route by which the waters draining into the "And what water transportation has done for Great Britain it has Great Lakes find their way to the ocean has become intensified, and the done in greater or less degree for other nations in other times. Access demand for action more and more insistent. It is not alone the .States to the sea gave the diminutive Republic of Venice preeminence in the whose territory lies in part within the basin of the St. Lawrence but Mediterranean. It transformed little Holland from a comparatively as well all those beyond as far as the Rocky Mountains, whose products obscure province into a great maritime nation. It gave to Spain het· find an outlet through the lake ports, that have a dl"rect concern in period of greatness. It brought , before the war, within almost this great enterprise. It is estimated that 40,000,000 people in the measurable distance of supremacy in the f-oreign trade of the world. United States and Canada would be the immediate beneficiaries of this " The conclusion is obvious that, if countries that bad f

Mr. JONES. Wh~t relief does the bill give this man? The PRESIDING OFFICER. Without objection, the vote by Mr. SWANSON. It gives him an increase of about $1,000 which the bill was passed will be reconsidered and the bill will or $1,500 in his pay; I do not know the exact amount. be reinstated on the calendar. Mr. JONES. By way of promotion? BILLS PASSED OVER Mr. SWANSON. He is promoted on the retired list to the The bill ( S. 2679) to limit the period for which an officer rank he held during the war on the temporary list. During appointed with the advice and consent of the Senate may hold the war when the NavY was expanded, as the Senator knows, over after his term shall have expired was announced as next there w~re a great many officers added, and those then in the in order. Navy were promoted. They served during the war with tem­ Mr. JONES. I think that bill ought to go over. . porary rank. We provided that their rank should be tem­ The PRESIDING OFFICER. The bill will be passed over, porary, so that the Navy could be reduced in size at the end under objection. of the war. This man served during the war, and he has been The bill ( S. 728) to provide for the construction of works serving ever since on the active list. He was retired on account for the protection and development of the lower Colorado River of physical disability. The bill simply gives him the same Basin, for the approval of the Colorado River compact, and for rank that he would have had with his class, practically. other pw·poses, was announced al) next in order. There are only two men affected. I think it is right and just Mr. ASHURST. Let that go over. that this should be done. The PRESIDING OFFICER. The bill will be passed over. The bill was reported to the Senate as amended, and the The bill. ( S. 1263) to amend section 4 of the interstate com- amendment was concurred in. merce act was announced as next in order. The bill wa ordered to be engrossed for a third reading, The PRESIDING OFFICEJR. This will go over, under ob­ read the third time, and passed. jection. BILLS AND JOINT RESOLUTIONS PASSED OVER ANDREW .w. MELLON The bill ( S. 151) for the relief of Charles R. Sies was The resolution ( S. Res. 173) expressing it as the sense of the an'nounced as next in order. Senate that Andrew W. Mellon should resign as Secretary of Mr. KING. Let that go over. the Treasury was announced as next in order. The PRESIDING OFFICER. The bill will be passed over. Mr. BRUCE. Let that go over. The bill (S. 2859) for the relief of Francis J . Young was The PRESIDING OFFICER. The resolution will be passed announced as next in order. over. Mr. KING. Let that go over. BILLS PASSED OVER The PRESIDING OFFICER. The bill will be passed over. The bill ( S. 1748) relating to the qualifications of jurors in The bill ( S. 2864) to establish the standard of weights and the Federal courts was announced as next in order. measures for the following wheat-mill, rye-mill, and corn-mill SEVERAL SENATORS. Over. . products, namely, flours, semolina, hominy, grits, and meals The PRESIDING OFFICER. The bill will be passed over. and all commercial feeding stuffs, and for other purposes, was The bill ( S. 3151) to limit the jurisdiction of district courts announced as next in order. of the United States was announced as next in order. Mr. KING. l\ly recollection is that the Senator from Ala­ Mr. BRATTON. Let that go over. bama and one other Senator desired some explanation of this The PRESIDING OFFICEH. The bill will be passed over. bill, and as they are not here I suggest that it be temporarily The bill ( S. 2612) for the relief of Mary Ellen Tiefenthaler laid aside. was announced as next in order. The PRESIDING OFFICER. The bill will be passed over. ltfr. KING. Let that go over. · The bill ( S. 1093) to prevent the sale of cotton and grain The PRESIDING 'OFFICER. The bill will be passed over. in futures markets was announced as next in order. The bill ( S. 1486) for the relief of the owners of the schooner Mr. BRUCE. Let that go over. A.dd.fson E. Bttlla1·d was announced as next in order. The PRESIDING OFFICER. The bill will be passed over. Mr. JONES. I would like to have some explanation of this The joint resolution ( S. J. Res. 57) requesting the President bill. I do not see the Senator who reported the bill or the to immediately withdraw the armed forces of the United States author of it in the Chamber, so I ask that it may go over. from Nicaragua was announced as next in order. The PRESIDING OFFICER. The bill will be passed O\er. Mr. BRUCE. Let that go over. The bill (H. R. 279) to amend section 8 of an act entitled The PRESIDING OFFICER. The joint resolution will be "An act to incorporate the Howard University in the District of passed over. . . Columbia," approved March 2, 1867, was announced as next in The joint re. olution (S. J. Res. 99) to amend jomt resolutiOn order. directing the Interstate Commerce Commission to take action Mr. BLEASE. Let that go over. relative to adjustments in the rate structure of co~on The PRESIDING OFFICER. The bill will be passed oyer, carriers subject to the interstate commerce act and the fixing The bill (S. 1727) to amend the act entitled "An act for the of rates and charges was announced as next in order. retirement of employees in the classified civil service, and for l\lr. FESS. Let that go over. other PW'POSes," approved May 22, 1920, and acts in amendment The PRESIDING OFFICER. The joint resolution will be thereof, approved July 3, 1926, was announced as next in order. passed over. Mr. KING. It will take some time to discuss that. I know RIOOISTERS AND RECEIVERS IN ALASKA some amendments are to be offered, and I suggest that it be passed over temporarily. The bill ( S. 2532) to provide for the designation of clerks or The PRESIDING OFFICER. The bill will be passed over. employees of the Department of the Interior to serve as The bill (H. R. 8298) authorizing acquisition of a site for registers and receivers in the land offices in Alaska was con­ farmers' produce market, and for other purposes, was an­ sidered as in Committee of the 'Whole and was read, as follows: nounced as next in order. Be it enacted, etc., That the Secretary of the Interior may designate Mr. BRUCE. I do not think the Senator from Virginia is and require a clerk in any of the land offices in Alaska, or any other ready to take up the bill. We want to try to have a day fixed suitable employee of the Department of the Interior, subject to the filing for its consideration. So it had better go over. of such bond or bonds as the Secretary of the Interior may prescribe, to The PRESIDING OFFICER.. The bill will be passed over, perform the several duties of register and receiver of such office, with under objection. all the powers incident to such duties; and the offices of register an!l The bill (H. R. 10885) to amend sections 23 and 24 of the receiver or ex officio register and receiver of the land office or offices general leasing act approved Febr,uary 25, 1920 ( 41 Stat. L. named in such designation shall thereupon be abolished: Prov1ded, That 437), was announced as next in order. the employee so designated in such land office may be paid a compensa­ Mr. BRATTON. Let that go over. tion not to exceed $3,000 per annum. The PRESIDING OFFICER. The bill will be passed over, Th~ bill was reported to the Senate without amendment, under objection. ordered to be engrossed for a third reading, read the third time, JOHN L. ALCOCK and passed. The bill ( S. - 3308) to confer jurisdiction on the Court of Mr. LA FOLLETTE subsequently said : Mr. President, while Claims to hear, determine, and render judgment upon the claim I was out of the Chamber Senate bill 2532 was passed. I ask of John L. Alcock was considered as in Committee of the unanimous consent that the vote by which the bill was passed Whole. be reconsidered and that the bill be restored to its status on Mr. KING. I objected to this bill the other day, but upon the calendar. When it is taken up for consideration I desire investigation I think it is a meritorious claim, and I have no to discuss the bill. objection. "··" 6512 CONGRESSIONAL RECORD-SENATE APRIL 16

The bill had been reported from the Committee on Claims INCREASE OF PENSIONS with an am·endment, on page 1, line 3, to strike out down to The bill ( S. 2505) granting increase of pension under the and including line 2 on page 2, and to insert: "That the Court general law to soldiers and sailors of the Regular Army and of Claims of the United States be, and hereby is, given juris­ Navy, and their dependents, for disability incurred in line of diction to hear and determine the claim of John L. Alcock, of duty, and authorizing that the records of the War and Navy Baltimore, 1\Id., and to award him compensation for losses or Departments be accepted as to incurrence of a disability in damage, if any, which he may have suffered through action service in line of duty was announced as next in order. by governmental agencies in commandeering, requisitioning, Mr. KING. There is another amendment to be offered to controlling by compulsion or otherwise, allocating or directing that bill, and I suggest that it go over. · the contracting for, or delivery of, spruce and fir lumber, which The PRESIDING OFFICER. The bill will be passed over. he owned, or had sold under firm and binding contracts to others than allied governments; and to enter decree or judg­ ARMISTICE DAY ment against the United States for such compensation, with The joint resolution ( S. J. Res. 25) to declare the 11th day interest thereon, notwithstanding the fact that there was no of November, celebrated and known as Armistice Day, a legal taking by the United States of any of said spruce or fir lumber holiday was announced as next in order. for the direct use of the United States, and notwithstanding the Mr. BORAH.' Let that go over. contracts made by claimant with representatives of the govern­ The PRESIDING OFFICER. The joint resolution will be ments allied with the United States, and notwithstanding the passed over. fact that the United States, or any officer, agent, or employee THIRD-CLASS POSTMASTERS acting in its behalf, controlled, allocated, or directed the The bill (S. 1729) extending the classified civil service to delivery of said spruce and fir lumber, or directed or required include postmasters of the third class, and for other purposes, contract to be made therefor under color of authority, or was announced as next in order. · committed a tort in doing so," so as to make the bill read: 1\Ir. BLEASE. Let that go over. Be it enacted, etc., That the Court of Claims of the United States be, The PRESIDING OFFICER. The bill will be passed over. and hereby is, given jurisdiction to hear and determine the claim of UNITED STATES COAST GUARD John L. Alcock, of Baltimore, Md., and to award him compensation for The bill (H. R. 11022) to extend medical and hospital relief losses or damage, if any, which he may have suffered through action to retired officers and enlisted men of the United States Coast by governmental agencies in commandeering, requisitioning, controlling Guard was announced as next in order. by compulsion or otherwise, allocating or directing the . contracting for . SEVERAL SENATORS. Over. or delivery of spruce and fir lumbeL', which he owned, or had sold under firm and binding contracts to others than allied governments; The PRESIDING OFFICER. The bill will be passed over. and to enter decL·ee or judgment against the United States for such ORDER OF BUSINESS compensation, with inter-est thereon, notwithstanding the fact that The PRESIDING OFFICER. The hour of 2 o'clock having there was no taking by the United States of any of said spruce or fir arrived, the Chair lays before the Senate the unfinished busi­ lumber for the direct use of the United States, and notwithstanding ness, which is Senate bill 1271, the migratory bird bill. the contracts made by claimant with representatives of the govern­ Mr. BRUCE. Mr. President, I think that some day should ments allied with the United States, and notwithstanding the fact that be set aside to enable us to take up bills that are objected to on the United States, or any officer, agent, or employee acting in its the call of the calendar. For instance, there is a bill in which behalf, controlled, allocated, or directed the delivery of said spruce I am very much interested that has come up again and again and fir lumber, or directed or required contracts to be made therefor and has been objected to and has gone over. This is the bill under .color of authority, or committed a tort in doing so. , extending the classified civil service to include postmasters of SEc. 2. The Court of Claims in the adjudication of such claim is the third class, and for other purposes. So with two or three authorized, in its discretion, to use, in addition to any evidence which other bills of very greatest moment in which I and other Sena­ may be offered in any suit brought under this act, the pleadings and tors happen to be interested. I think some time ought to be evidence in the case of John L. Alcock & Co. against United States set aside for taking up objected bills. (61 Ct. Cis. Repts. 312). Mr. JONES. 1\Ir. President, may I sugge t to the Senator-­ SEC. 3. Such claim may be instituted at any time within four months Mr. BRUCE. It is not my nature to make threats, but the from the approval of this act, notwithstanding lapse of time or any time may come when I shall have to object with a view of statute of limitations. Proceedings in any suit brought in the Court securing a time for the consideration of objected bills. of Claims under this act, appeals therefrom, and payment of any judg­ Mr. JONES. May I suggest to the Senator that to-day we ment therein shall be had as in the case of claims over which such took up the calendar not for the consideration of unobjected com·t has jurisdiction under section 145 of the Judicial Code, as bills but under Rule VIII, so that if a bill was objected to any amended. Senator had a right to make a motion to proceed to its consid­ The amendment was agreed to. eration. The trouble is, howe:ver, that we did not get started Mr. OVERMAN. Does the bill provide for the rendering of until the morning hour had nearly expired. a judgment by the Court of Claims? Mr. BRUCE. I did not know that, or I should have made a motion long ago. Mr. SWANSON. It does not. It simply authorizes the court to find the facts and certify them to Congress. NATIONAL DEFENSE ACT--NATIONAL RIFLE MATCH 1\Ir. JONES. According to the title, it is to render judgment. Mr. BROOKHART. Mr. President, I ask unanimous consent 1\Ir. SWANSON. 'rhe amendment changes that. for the present consideration of Calendar No. 767, the bill 1\Ir . .J01'>.T]!)S. Tllen the title should be amended. (H. R. 8550) to amend the national defense act. It is the 1\.fr. SWANSON. I have no objection to the title being national rifle match bill. The appropriation for these matches amended. has already been made, and it is important that the bill to The amendment was agreed to. which I refer shall be paRsed at thi time. The bill was reported to the Senate as amended, and the 1\Ir. HALE. Mr. President, will it take any time? amendment was concurred in. Mr. BROOKHART. No; it will take no time. The bill was ordered to be engrossed for a third reading, read The PRESIDING OFFICER. Is there objection to the re­ the third time, and passed. quest of the Senator from Iowa? The title was amended so as to read : "A bill to confer juris­ Mr. BRUCE. I object, at this time. diction on the Court of Claims to hear and determine the facts The PRESIDING OFFICER. The Senator from Maryland in the claim of John L. Alcock." - objects. l\fr. BROOKHART. The Senator, I know, is very much BILL PASSED OVER interested in the bill. It is the national rifle match bill, in The bill ( S. 126) for the relief of M:ay Gordon Rodes and which the Senator from Maryland is interested. Sara Louise Rodes, heirs at law of Ty1·ee Rodes, deceased, was Mr. BRUCE. Very well, Mr. President, because of my reat announced as next in order. - consideration for the Senator from lo\va, I am very glad to 1\fr. BRUCE. Let that go over. withdraw my objection. The PRESIDING OFll'ICER. The bill will be passed over. The PRESIDING OFFICER. Is there objection to the re­ quest of the Senator from Iowa? L Y ~N W. FRANKLIN There being no objection, the Senate, as ~n Committee of the The bill (H. R. 8651) for the relief of Lynn W. Franklin Whole, proceeded to consider the bill, which had been re­ was considered as in~ Committee of the Whole. ported from the Committee on Military Affairs with an amend­ The bill was reported to the Senate without amendment, ment to strike out all after the enacting clause and insert in ordered to a third reading, read the third time, and passed. lieu thereof the following : 1928 CONGRESSIONAL RECORD-SENATE 6513 Be it enacted, etc., That the act entitled "An act for the promotion There being no objection, the Senate, as in Committee of the of rifle practice throughout the United States," approved February 14, Whole, resumed the consideration of the bill (H. R. 12286) 1927 (44 U. S. Stat. 1095), which adds an additional paragraph to making appropriations for the Navy Department and the naval section 113 of the national defense act, is hereby amended to read as service for the fiscal year ending June 30, 1929, and for other follows: "That there shall be held an annual competition, known as purposes. the national matches, for the purpose of competing for a national Mr. HALE obtained the floor. trophy, medals, and other prizes to be provided, together with a small­ Mr. BLAINE. l\lr. President-- arms firing school, which competition and school shall be held an­ Mr. HALE. I would like to make a statement before the nually under such regulations as may be prescribed by the national Senator commences his speech. board for the promotion of rifle practice, which regulations shall be Mr. BLAI.l.\~. Very well. subject to the approval of the Secretat·y of War." Mr. HALE. ~ In the debate on Friday last. relating to the SEC. 2. Hereafter the national board for the promotion of rifle naval appropriation bill I stated that items in the bill for the practice shall consist o:f the Assistant Secretary of War, the Assistant Marine Corps were increased over the same items last year by a Secretary of the Navy, one member of the Regular Army to be desig­ little over $1,000,000. This seems to be a large sum. It is fair nated by the Secretary of War, one member from the Navy to be desig­ to state, however, that $830,000 was added to last year's bill nated by the Secretary of the Navy, one membet· from the Marine by reappropriating some unexpended balances which were still Corps to be designated by the commandant of the United States in the Treasury. Thus, with those unexpended balances added·_ 1\farine Corps, one member from the Militia Bureau to be designated to last year's bill, there is a difference between last vear's bill by the chief of the bureau, one member from each State to be desig­ and this year's House bill of $274,636 only, as shown in the nated by the governor of the State, one member from the District of House report. The Senate committee added $93,864 to the bill Columbia to be designated by the commanding general, District of for appropriations for the Marine Corps making in all $368,320 Columbia, and one member from the National Rifle Association of increase over last year. America to be designated by the executive committ~e thereof. Mem­ Now, $171,916 of this amount, as I said on Friday, is taken bers of said board shall hold office during the pleasure of the appoint­ up in pay of the Marine Corps and has nothing whatever to do ing power. with the foreign expeditions in China and Nicaragua. Neither The Assistant Secretary of War shall be president of the board and has the $93,864 which was added for the Marine Corps Reserves. the Assistant Secretary of the Navy shall be vice president and per­ That leaves a balance of $102,540, which would be expended, in form the duties of the president in his absence or upon his 1;equest. all probability, for matters connected with Nicaragua and with Said board is charged with prescribing rules and regulations for the China, though part of that sum is made up of contingent ex­ promotion of small-arms practice in the United States, for the conduct penses and might have to do with other matters. The inten­ of the national matches and the Small Arms Firing School, and also tion was not to have anything in this bill which referred to for the conduct of the office of the director of civilian marksmanship, those foreign expeditions, but to take care of them through subject to the approval of the Secretary of War. deficiency appropriations. The small increase that is made is Said board and its executive committee shall se~ve without pay unavoidable. It is largely used to make up the depleted stocks except to receive actual traveling and hotel expenses while absent from on band in the Marine Corps, to fill out stocks that were their respective homes for the performance of their duties and under depleted on account of the fureign expeditions. such regulations as the Secretary of War may direct. Mr. LA FOLLETTE. Mr. President, will the Senator yield Said board shall meet once annually upon the call of the president for a question? of the board, at such time and place as he may designate, for the per­ The PRESIDING OFFICER (Mr. 0DDIE in the chair). Does formance of its duties as prescribed in this act. the Senator from Maine yield to the Senator from Wisconsin? Seventeen members shall constitute a quorum for the transaction Mr. HALE. I yield. of business nt such meeting. · Mr. LA FOLLETTE. Can the Senator tell us how much At this meeting of the board an executive committee shall be elected of the $830,000, which be said was made available through re­ of not less than seven nor more tban nine members, which said com­ appropriation of unexpended balances of last year, went to mittee shall have supervision over, and carry out the regulations of the defray any expenses in connection with any of the foreign board relating to, small-arms practice, the national matches and tbe expeditions of the Marine Corps? · Small At·ms Firing School, and the director of civilian marksmanship. Mr. HALE. None at all. It was simply used in the ordinary SEC. 3. The national matches contemplated in this act shall consist current expenses of the Marine Corps for the year. The amount of rifle and pistol matches for the national trophy, medals, and other by which it is increased over last year's appropriation which prizes mentioned in section 1 above, to be open to Army, Navy, Marine could have been used for those foreign expeditions is somewhere Corps, National Guard, or Organized Militia of the several States, Ter­ near $100,000-perhaps as much as $102,540--but no more. ritories, and District of Columbia, rifle clubs, and civllians, together Mr. LA FOLLETTE. Why does the Senator say that it is with a small-arms firing school to be connected therewith and competi­ felt that it would be better to take care of the increased ex­ tions for which trophies and medals are provided by the National Rifle penditures, due to the use of the ma1ines for foreign expedi­ Association of America; and for the cost and expenditures required for tionary purposes, in the deficiency bill rather than in the and incident to the conduct of the same, including the personal ex­ regular naval appropriation bill? penses of the board and executive committee the sum necessary for Mr. HALE. Because it is not possible to find out what they the above-named purpos£;s is hereby authorized to be appropriated an­ are beforehand. · nually as a part of the total sum appropriated for the national defense: Mr. LA FOLLETTE. The Senator does not want-- Provided, That no competitor shall be entitled to commutation of ra­ Mr. HALE. I will explain to the Senator what has been tions in excess of $1.50 per day, and when meals are furnished no done. greater expense than that sum per man per day for the period the . Mr. LA FOLLETTE. Are we to deduce from the Senator's contest is in progress: Providpd further, That in lieu of traveling ex­ statement that the entire cost up to date of the expeditionary pense and commutation of rations while traveling the sum of 5 cents use of these troops in China and Nicaragua amount only to per mile may be paid to civilian competitors, and such travel pay for $102.000? the return trip may be paid in advance of the performance of the Mr. HALE. Oh, no. I will explain that when I explain tbe travel. deficiency items and the amounts appropriated in the two bills. SEC. 4. For the incidental expenses of the national board for the 1\Ir. LA FOLLETTE. Can the Senator give us that informa­ promotion of rifle practice, including books, pamphlets, badges, trophies, tion now? prizes, and medals, to be expended for ·such purposes, the sum of not Mr. HALE. I will give the Senator the information. more than $7,500 is hereby authorized to be appropriated annually. Mr. LA FOLLETTE. Yes; but the Senator promised to give it to us when the deficiency bill came before u&. The amendment was agreed to. 1\Ir. HALE. I will give it to the Senator within a minute or The bill was reported to the Senate as amended, and the two, if he will allow me. amen~nt was concurred in. Mr. LA FOLLETTE. I beg the Senator's pardon. The amendment was ordered to be engrossed and the bill to Mr. KING. Mr. President, will the Senator submit to an in­ be read a third time. · terruption? Tbe bill was read tbe third time and passed. Mr. HALE. I yield. NAVAL APPROPRIATIONS Mr. KING. Does the bill now under consideration carry ap­ l\Ir. HALE. Mr. President, I ask unanimous consent that propriations for the maintenance.of marines in Haiti? the unfinished business be temporarily laid aside and that the Mr. HALE. For the general maintenance of the marines, and Senate resume consideration of the bill (H. R. 12286) making that includes the maintenance of marines in Haiti. appropriations for the Navy Department and the naval service 1\Ir. KING. It is intended, then, to keep marines in Haiti and for fiscal year ending June 30, 1921:>, and for other purposes. provision is made by the bill to keep them there for at least The PRESIDING OFFICER. Is there objection to the re­ another year? quest of the Senator from Maine? Mr. HALE. That has always been done. 6514 CONGRESSIONAL RECORD-SENATE APRIL 16 1\Ir. KING. It has always been done since we engaged in our understand, under ordinary conditions, to be moving so many imperialistic policy in Haiti. troops about as have been moved at this time. Mr. HALE. There is no change from last year in that regard. Mr. HALE. It is not; but as I have stated, there is a certain Mr. EDGE. Mr. President, will the Senator yield? amount of fuel allowed for the use of the Navy during the The PRESIDING OFFICER. Does the Senator from Maine year, and when fuel is used for one it is taken away from yield to the Senator from New Jersey? another, so that it does not at all increase the expenditure. Mr. HALE. I yield. Mr. LA FOLLETTE. As I understand the Senator from 1\fr. EDGE. In other words, as I understand the Senator, he Maine, there have been no additional expenditures for the is presenting purely and simply the naval affairs appropriations Navy in connection with the transporting of the troops to and not dealing with the policy of the Government for or against Nicaragua or to China? or otherwise in connection with our foreign relations. He is l\Ir. HALE. No; thei·e have been no additional expenditures. simply dealing with a bill that provides for maintenance and The special- ervice squadron in Nicaragua and the ships of the continuation of forces wherever they may be sent. Navy that are in active commission cost about as much in one Mr. HALE. That is quite correct. place as in another. Mr. KING. But the Senator from New Jersey must know Adding to the sum of $1,564,750 the $102,540 which is the that if the administration has a policy which involves the send­ estimated increase in this bill, we have $1,667,290, which is ing of our military forces to other lands we must make appro­ the total additional expense to the Government on account of priations, and therefore the Senate has a right, and Congress the Nicaraguan expedition up to Jtme 30, 1928. That $102,540, has a right, to express itself upon the validity and propriety of furthermore, covers the expense not only for Nicaragua but for those appropriations. China as well. So, if we prorate that amount, it would take . Mr. EDGE. I quite agree with the Senator from Utah. off an additional $60,000, making in all $1,607,290. There is absolutely no impropriety. I did not mean so to indi­ I think that answers the question which the Senator from cate in expressing a view as to foreign policies at any time. Wisconsin [Mr ~ BLAINE] brought up in his resolution to-day; Perhaps this is a very proper time. As a matter of fact, I and I think, if it is an answer, he will agree with me that there think it is. I think the time has come when we should thrash is no particular purpose in the resolution. this matter out. Further, I should like to say that this appropriation bill Mr. KING. And have a "show-down." has been deferred to a very late period in the year. It is of ,l\!r. HALE. Last Friday I did not have the figures for the the utmost importance that its passage should be expedited. deficiency bill of last year nor for the next deficiency bill. I Before the beginning of the fiscal year the Navy has to make have secured the figures from the department and shall be very contracts for supplies, and it has to know where it stands. The glad to give them to the Senate. fiscal year beginning in July,_ there is very little time left for In the deficiency bill approved December 22, 1927, there was that purpose. So I hope that Senators will help me in ex­ an item for general expenses and pay of Marine Corps of pediting the passage of the bill. $1,943,631. Of this amount $743,631 was on account of expendi­ Mr. BLAINE obtained the floor. t ures for the mail guards. Those were the marines who were l\Ir. ROBINSON of Indiana. Mr. President, will the Sen­ put on mail guard duty in this country. Then $1,000,260 was ator from Wisconsin yield to me for just a moment? for pay and general expenses of the Marine Corps in China and The PRESIDING OFFICER. Does the Senator from Wis­ $199,740 for pay and general expenses of the Marine Corps in consin yield to the Senator from Indiana? Nicaragua. That was in the deficiency bill approved Decem­ l\fr. BLAINE. I yield. ber 22, 1927. Estimates have been presented by the department to the SALT CREEK (WYO.) OIL FIELD Bureau of the Budget for the deficiency bill to come before the Mr. ROBINSON of Indiana. Mr. President, in reference to Senate at a later time. The estimate is that the deficiency the leases granted in the Salt Creek field there has been much will amount to $3,217,084; that this amount will be divided as editorial comment. I have here a copy of an editorial published follows : One million eight hundred and fifty-two thousand and in the Rocky Mountain News, of Denver, Colo., of the issue seventy-four dollars for pay and general expenses of the Marine of March 31, 1928, with reference to this matter. As is gen­ Corps in China, $1,365,010 for pay and general expenses of the erally known, the Rocky Mountain News i" one of the mem­ Marine Corps in Nicaragua. The items in the deficiency esti­ bers of the Scripps-Howard group of newspapers. They are mate have been grouped for Nicaragua and China. They cover rather close to the grotmd out there, and I do not believe would the following items: Provisions, $546,224; clothing, $689,746; take the responsibility of an editorial of this sort unless the fuel, $194,936; military supplies and equipment, $244,675 ; re­ allegations contained in it were true. I therefore send the pairs of barracks, $283,779; forage, $40,617; miscellaneous sup­ editorial to the desk and ask that it may be read at this time. plies and-expen e , $1,14();023. The PRESl,DING OFFICER. Without objection, the clerk No division has been made between China and Nicaragua, will read, as requested. but the division would be pro rated according to. the size of The Chief Clerk read as follows: the appropriations which I have mentioned; that is, $1,852,074 [From the Rocky Mountain News, March 31, 1928] for China and $1,365,010 for Nicaragua. This would make the total amount which we have spent for _the Marine Corps in SALT CREEK'S BITTER OIL Nicaragua and which we shall have expended in deficiencies Keep 'l'eapot Dome and Elk Hills in their class and finish with them up to the end of the current year, $1,564,750. and expose all the rottenness. The question has been also brought up as to whether there But do not stop there. Give Salt Ct·eek, Wyo., the thrice over. would be any additional expense to the Navy proper on a~­ Acre for acre, the Salt Creek field has been the richest find on the count of this expedition. I can answer that by saying that continent. It has been producing actively 16 years and there are a good there would not be so far as Nicaragua is concerned. The many years ahead of it. Actually billiods in it. special-service squadron which is stationed in the Caribbean 'l'he greater part of its public-land sections was traded off during the bas been going to Nicaragua off and on. In that squadron is Democratic national r~gime of 1913-1921, but more particularly during the Rochester, an old cruiser of about 8,000 tons, the D enver, the last year or two of the Wilson administration, when the big man was and the Galveston, cruisers of about 3,000 tons each, and the absent or physically unable to check on things. gunboat Tulsa, which is a smaller boat of, I think, about 1,500 Go back to the discovery of the rich field. It becomes an international tons. Those ships-- story. Some comedy and romance; but above all, tragedy. The tragic 1\Ir. LA FOLLETTE. l\Ir. President, how were these troops is showing up now. The romance and the comedy are all gone; the transported? W l(re they transported in Navy transports or Greek climax is nearing. Army transports? Find out all about the preemptors of Salt Creek and what became of l\Ir. HALE. They were transported in Navy transports. them. Several of them victims of mercenaries, one or two with millions Mr. LA FOLLETTE. The item of transportation is not in­ which they did not know what to do with, poor fellows ! cluded in any of the figures that the Senator has given, is it? Learn something of the means taken to be rid of homesteaders and Mr. HALE. The NaYy transports are moving about all the prospectors-a fierce tale in itself. time. It makes no particular difference on which particular Find out a whole lot about the passage of the leasing act-a novel in service they are consigned. If additional fuel is used by one its plots and counterplots. ship it is taken out of the quota of some other ship, and the The intent was good; the result was ignoble. fuel expenditures of that ship are reduced; so that there are no Find out regarding the limited number of owners and lessees now in additional fuel expenses for the Navy on account of these the field and in what way they gained pos ession. A three-volumed expeditions. novel. 1\Ir. LA FOLLETTE. Did not this movement involve an un­ Beyond everything else let the investigators dig deep into the "high­ usually large number of marines? It is not customary, as I jacking" propositions practiced over the Salt Creek field. This we 1928 CONGRESSIONAL RECORD-SEN ATE 6515 guarantee ·wm cause tbe ears of tbe Nation to prick up. It will be a 2. The applicants are requesting a greater acreage than the maxi­ story of stories. Neither the Teapot Dome nor the California holdup mum allowed by said act ; and the leases, if granted as requested, or will compare with it. Millions in blackmail! at least interests therein, would inure to persons, associations, or oor­ Or should it be told ? i>Orations for a greater aggregate area or acreage than the maximum As a lesson in national morality, we believe the whole scandal should in said act provided for. be uncovered-" given the air.'' Now I turn over to the conclusion and read as follows. These Mr. ROBINSON of Indiana. Mr. President, I have here an are excerpts from the conclusion of the memorandum submitted 1 editorial of similar tenor published by the Denver News, of by Ml • Bell to the Secretary of the Interior at that time in the Denver, Colo., on the 3d dJ.lY of April, 1928, which I send to the last Democratic -administration: desk and ask to have read at this time. The PRESIDING OFFICER. Without objection, the clerk The paramount reason urged by applicants in support of their claims will read. is that they innocently and in good faith have expended vast sums in The Chief Clerk read ·as follows: tbe development of the field, but the true facts render this contention impotent, bec.ause almost all tbe capital used, not only for development [From the Denver (Colo.) News of April 3, 1928] but also to purchase claims, was the money 1·eceived for the oil taken GO THROUGH WITH IT by tbese trespassers from the public lands. So resourceful were these Wbether or not at this rather late day the United States Govern­ promoters and capitalists that at no time did they 1isk any considerable ment could reclaim much out of the several billion dollars' worth of oil part of their own means. They let the property pay for itself and for that has gone out of the Salt Creek field to the refineries, or whether its development. It will be remembered that the Fitzhugh claims were the proper department of Government could have a valid claim on what secured by an agreement to purchase the oil to be produced at 33 cents remains of tbe oil in the public-land sections of the field, is a legal per barrel, only $10,000 in this case being advanced, and that the Hen­ proposition. It might be worth investigation, however. shaw claims were purchased for $325,000, but this consideration was not. But if no monetary returns were made to the United States Treasury, paid till it was derived from the oil. Any other capital that was used the Salt Creek business should be gone into by the Senate investigating very largely came front France and Holland. The crowd asking such committee and by a regularly constituted division of the executive valuable concessions at the bands of the Government already has be­ branch of Government as a lesson and as a warning. come immensely wealthy at its expense. They have no equities worthy It may be that in the end-and it seems a long way off at this of consideration. It is true that stocks have been sold to the public, but writing-no one connected with the Teapot Dome-Elk Hills naval-reserve surely the Government should not sacrifice the public property, a greatly transactions will be held in jail as punishment; bot at that, much has needed nahual resource, to make these oil stocks good. been gained in a moral or ethical w.ay. The defendants have been pun­ The l\fidwest Refining Co. has an absolute monopoly of the Salt Creek ished already by a higher law. They are taboo. So far they have field, and in one way or another controls every one of the above-named escaped the statutory law, but there is a karmic law. applicants. It is interested in every acre sought by them, and a lease The Teapot Dome busine!!'s was an incident in the Salt Creek trans­ to anyone of them will inru·e to its benefit. Its claims are based on action. If it bad not been for treasures found in Salt Creek some of titles that are thoroughly saturated with fraud, and from the beginning the persons mixed up with the Teapot Dome conspiracy would not have its promoters, officers, and directors unquestionably have bad full knowl­ been in position to join the Teapot Dome circle-the chips were of edge of the fraud. It not only is not acting honestly and in good faith, the blue variety in the latter. Fortunes were made out of Salt Creek but it now is compounding fraud by seeking to secure leases on a greater apart from the other transaction. Some of them, doubtless, were acreage than the maximum allowed by law . • For several years it main­ honestly made; others are in grave doubt. tained a large force of paid lobbyists, lawyers, and agents at the Capital Mr. ROBINSON of Indiana. Mr. President, I am informed to secure tbe passage of the act with tbe relief provisions included, and that Robert C. Bell on January 18, 1921, was a special assistant evidently it will continue so to do till its subsidiaries have secured leases to the Attorney General of the last Democratic administra­ thereunder. They are not " in the court with clean hands." tion. On January 18, 1921, Robert C. Bell submitted to the Mr. President, I read no more from this memorandum. It is Department of the Interior of the lust Democratic administra­ signed by Robert C. Bell, special assistant to the Attorney Gen­ tion and to the Attorney General of the United States in that eral. It is dated January 18, 1921. I am i:::lformed that, not­ administration a memorandum with reference to the leasing withstanding this presentation of the conditions in the Salt of the Salt Creek oil field. I think it is generally conceded Creek field, between that day and the outgoing of the last Demo­ that the Salt Creek :field was, and perhaps is to-day, the richest cratic administration, March 4, 1921, practically all of the Salt oil field in the world. 1\fr. Bell had been with the department, Creek field was leased to private oil interests, and as a result as I understand, for several years. He was thoroughly con-­ the richest oil field in the world passed out of the control of the Yersant with the fraudulent claims of those asking for leases United States of America. in the Salt Creek :fleltl under the leasing act of February 20, Mr. President, at this point I submit the memorandum and 1920. Mr. Bell submitted his memorandum and made an argu­ ask that it be incorporated iDI the RECORD as a part of my ment against those leases, showing conclusively, I think, that observations on this subject. they represented a tissue of fraud and that if they were granted The PRESIDING OFFICER. Without objection, it is so the United States would lose through fraudulent means most of ordered, its great oil resources. The matter referred to is as follows: I desire to read just a little of that memorandum-the beginning and close-and then I shall ask that it may be (Memorandum) printed entire in the RECORD at the conclusion of my observa­ LEASIXG SALT CREEK OIL FIELD tions in order that it may be made available in full to the Leases to the withdrawn oil lands of the Salt Creek field, Natrona American people, who ought to know just what took place in County, Wyo., have been requested under the act of February 25, those latter days of the last Democratic administration. I read 1920, by: from a copy of the memorandum: Acreage LEASING SALT CREEK OIL FIELD Applicant : applied for Wyoming Associated Oil Corporation______5, $l63 Leases to the withdrawn oil lands of tbe Salt Creek field, Natrona Midwest Oil CO-----·------1, 970 County, Wyo., have been requested under the act of February 25, Central Wyoming Oil & Development Co______920 Petroleum :Maatscbappij Salt Creek______160 1920, by: Salt Creek Consolidated Oil Co______2. 347 Acreage E. J. Sullivan, trustee------·---- 560 Applicant : applied for Mountain & Gulf Oil Co------960 Wyoming Associated Oil Corporation------5, 963 New York Oil Co------120 Midwest Oil CO------1,970 New York Oil Co. and Northwestern Oil Co______480 Central Wyoming Oil & Development Co______920 National Petroleum CO------960 Petroleum 1\faatschappij Salt Creek______160 Federal Oil & Development Co______320 Salt Creek Consolidated Oil Co------2, 347 Parkman Oil CO------160 E. J. Sullivan, trustee------560 Total ______14,920 Mountain & Gulf Oil CO------960 New York Oil CO------120 These applications should be denied, because- New York Oil Co. and Northwestern Oil CO------480 National Petroleum CO------960 1. The applicants have been guilty of fraud, bad kJ?owledge or rea­ Federal Oil & Development CO------320 sonable grounds to know of fraud, and have not acted honestly and in Parkrrmn Oil Co------160 good faith. Total------14,920 2. The applicants are requesting a greater acreage than the maximum These applications should be denied, because: allowed by said act, and the leases if granted as requested, or at least 1. The applicants have been guilty of fraud, had knowledge or rea­ interests therein, would inure to persons, associations, or corporations sonable grounds to know of fraud, and have not actetl honestly and in tor a greater aggregate area or acreage than the maximum in said act good faith. provided for. 6516 CONGRESSIONAL RECORD--SENATE · APRIL 16 FRAUD the names of dummy locators in making ·the locations of a mining Section 18 of the act or February 25, 1920, provides : claim for the purpose of securing a concealed interest in such claim "No claimant for a lease who has been 'guilty of any fraud, or who appears to be contrary to the purpose of the statute; but when this had knowledge or reasonable grounds to know of any fraud, or who bas scheme is used to secure an interest in a claim for a single individual, not acted honestly and in good faith, shall be entitled to any of the not only concealed but in excess of the limit of 20 acres, it is plainly benefits of this section." in violation of the letter of the law, and when, as in this case, all All the debates in both the Senate and House of Representatives, the locators bad knowledge of the concealed interest and were parties all the records of hearings before the Committees on Public Lands and to the transaction, it rendered the location void." the reports of these committees, show that the question of fraud was a In the case of Nome & Sinook v. Snyder (187 Fed. 385-388-389) subject of very serious consideration when this act was before Congress. the court said : Because of the fact that rights were to be conferred that did not then " It follows, therefore, with exact logic, that five persons may by exist under the law, it was feared that relief might be extended to means of proper association make valid location of 100 acres in one claimants who were not justly entitled thereto. The above-mentioned claim, so that it did not include more than 20 acres to each individual. provision, which was included in the bill introduced in the Senate, This does not mean that while the five may, by associating themselves was modified in the Hou e so as to be less stringent, but was adopted together, locate 100 acres in one claim, 1 or 2 of the 5 can acquire in conference and finally enacted. It does not require that a claimant by such location substantially aU of the claim, leaving the others with shall be guilty of fraud or shall have actual knowledge of fraud, but proportionately a very small or nominal interest therein. only that a claimant shall have had reasonable grounds to know of any "Any scheme or device entered into whereby one individual is to fraud, or shall not have acted honestly and in good faith. It now acquire more than that amount or proportion in area constitutes a. behooves those who administer or interpret this law to give it the fraud upon the law, and consequently a fraud upon the Government, effect it was intended to have. This intention of Congress is indicated from which the title is to be acquired, and any location made in pur­ in the language of Senator Leriroot, as follows : suance of such a scheme or device is without legal support and void. "But the Senator forgets that this entire section is a section extend­ The proposition seems to be well established. ing a privilege to a certain class o( claimants. 'The Senator well knows " Now, in the case under review, the very articles of agreement put that it is this section that has caused the greatest controversy of any the claimant beyond the pale of the law, while the testimony estab­ portion of the oil leasing legislation. Complaint has constantly been lishes the illegality of the scheme beyond peradventure. The location, made that legislation which has been proposed in the past has opened although made in the name of the association, two of the parties there­ the door of relief to fraudulent claimants. This is the stt·ongest pro­ to were to have bnt a nominal interest in the claim, one less than one­ vision against fraud that has ever been found in any relief section in fifth, and one more than one-half, giving the latter, of course, more an oil leasing bill." (CONGRESSIONAL RECORD, 66th Cong., 1st sess., than 50 acres proportionately in the claim. So that, regardless of vol. 58, p. 4536.) the discovery, regardless of the marketing on the ground, or even '!'he rights asserted by the claimants were initiated under the placer the assessment work, the claim was void, and could not avail the mining laws, a provision of which is as ·follows: locators in any stage." " Legal subdivisions of 40 acres may be subdivided into 10-acre In the case of the United States v. Brookshire Oil Co. et al (242 tracts; and two or more persons, or associations of persons, having Fed. 718-721) the court said : contiguous claims of any size, although such claims may be less than "It is manifest that Burge conld acquire no right in mineral lands 10 acres each, may make joint entry thereof; but no location of a as against the Government by such subterfuge, and since the Brook­ placer claim, made after tlle 9th day of July, 1870, shall exceed 160 shire Co. was in possession and claiming under him, and as his repre­ acres for any one person or association of persons, which location shall sentative or agent, it necessarily follows that its interests was no conform to the United States surveys; and nothing in this section con­ greater than his. It is true there is no limitation as to the number tained shall defeat or impair any- bona fide preemption or homestead of mining claims an individual or association of indvduals may locate, claim upon agricultural lands, or authorize the sale of the improve­ but it is provided tllat no claim shall exceed 20 acres for each indi­ ments of any hona fide settler to any purchaser." (Act July 9, 1870, vidual (sec. 2331, R. S.; Comp. St. 1916, par. 4630) or 160 acres for 16 Stat. L. 217, 6 Fed. Stat. Ann. 577, sec. 2330.) any association ( ec. 2330, R. S.; Comp. St. 1916, par. 4629). This Another provision is as follows : is a direct and positive limitation of the amount of mining ground any " When placer claims are upon surveyed lands and conform to legal one claimant may appropriate individually or as a member of an asso­ subdivisions no further survey or plat shall be required, and all placer ciation in any one claim, aud he can not evade the law by the use cJaims located after the lOth day of May, 1872, shall conform as near as of the names of his friends, relatives, or employees. Any device practicable with the United States system of public-land surveys, and whereby one person is to acquire more than 20 acres, or au association the rectangular subdivisions of such surveys, and no such location shall more than 160 acres in area, by one discovery, constitutes a fraud upon include more than 20 acres for each individual claimant; but where the Government and is without legal support and void.'' placer claims can not be conformed to legal subdivisions, survey and plat HENSHAW -FITZHUGH LOCA"rlONS shall be made as on unsurveyed lands ; and whereby the segregation of Preferential rights to leases to nearly all the Salt Creek field, which mineral land in any legal subdivision a quantity of agricultural land was withdrawn by Executive order of September 27, 1!)09, are based less than 40 acres remains, such fractional portion of agricultural land on what are generally known as the Henshaw-Fitzhugh locations which may be entered by any party qualified by law for homestead or pre­ were made in the spring of 1910. These locations were void not only emption purposes." (Act of May 10, 1872, 17 Stat. L. 94, 6 Fed. because they were made subsequent to the order of withdrawal but Stat. Ann. 579, sec. 2331.) also because none of the said locations were made in good faith and The object of these provisions is to limit the quantity of placer for the use and benefit of the named locators, each with an interest mineral land which may be located by one person to 20 acres, in order not to exceed 20 acres of each tract; in other words, the locators were to make a general distribution among as large a number as possible, what are commonly ca11ed "dummies." These locations, 120 in num­ rather than favor a few imlividuals who might wish to acquire princely ber, were made by ;esidents of San E'rancisco and Oakland, Calif., as fortunes by securing large tracts of such lands, and to secure the follows: prompt development of such lands as are located ; therefore it is con­ trary to this policy for one person to cover more than 20 acres by one " William G. Henshaw, :fin::mcler; Hetty T. Henshaw, wife of William location by the device of using the names of his employees, ft·iends, and G. Henshaw; William M. Fitzhugh, mining operator; and Mary E. Fitz­ relatives as locators. hugh, wife of William M. Fitzhugh." Regardless of any kind of a definition that might be given for Tile name of the four parties above mentioned were used on each of " fraud,'' the courts repeatedly have held that it is a fraud ou the law the 120 locations with four of the following, without any apparent and on the Government where locations are not made in good faith for method of selection or rotation.: the use and benefit of the named locators, each with an interest not to "W. F. Henshaw, brother of William C. Henshaw; Helen W. Henshaw, exceed 20 acres. Such a scheme is condemned in the case of Cool\ v. wife or F. W. Henshaw; Lillie T. Hall, sister of Hetty '1'. Henshaw; Klonos et al. ( 16! Fed. 529), wherein the court said : E. N. Hall, husband of Lillie T. Hall ; Alla S. Chickering, daughter of "The prohibition contained in section 2331 against the location of William C. Henshaw; Harry Chickering, husband of Alia S. Chickering; 'more than 20 acres for each individual claimant' is direct and posi­ Ethel K. Nichols, niece of Hetty T. Henshaw; Henry D. Nichols, husuand tive and limits the amount of ground that any one claimant may of Ethel K. Nichols ; and H . .T. Knowles." appropriate, either individually or in association claim, at the time of The names of the four following-mentioned parties, all employees of the location. * • * The question here is, not whether an individual William G. Henshaw, were used, two of them once and two of them can purchase m'ining claims after they have been located and hold them twice: in his own name but whether an individual can, by the use of the " Chal'les T. Rudolph, Emil Nusbaumer, William H. Metcalf, and r. C. names of his friend , relatives, ol· employees as dummies, locate for Black." bis own benefit a greater area of mining ground than that allowed by William G. Henshaw, a financier, furnished all the money for the law. * • * The few restrictions imposed are only intended to pre­ enterprise, while William M. Fitzhugh made the locations and was to do vent the primary location and accumulation of large tracts of land by a such work in the field as was deemed necessary. Evidence is abundant few persons, and to encourage the exploration of the mineral resources that these two men were the parties in interest and that they received of tbe public land by actual bona fide locators. The scheme of using the profits of their operations. 1928 CONGRESS! ON AL RECORD-SENATE 6517 H. J. Knowles freely admits that hls name was used as an arcommo­ from any lands or oil or gas intE>rests either may acquire in the State dation to William G. IIenshaw, and that be never bad any interest in of Wyoming or either have acquired in the said State," he was entitled the locations. The use of the names of the majority of these locators to three-fomths of Fitzhugh's one-fourth. Strange as it may seem, he cost Henshaw the munificent sum of $12.50 for each time each name dld not admit that his construction would give Fitzhugh a one-fourth was used. But the best evidence of the character of these locations is interest in his three-fourths. This interpretation, of course, would contained In contmcts-of record-between William G. Henshaw and make Fitzbugh and wife dummies, because it would give Henshaw 30 William M. Fitzhugh which purport to define their respective interests. acres of the 40 acres of each location, presumably the property of One of the contracts, dated August 15, 1909, recorded May 25, 1911, in Fitzhugh . and wHe. If it were Henshaw's idea that the agreement Book 2, A. C. & L., 456 Natrona County, Wyo., provided "that Henshaw entitled Fitzhugh to a one-fourth interest in his (Henshaw's) share should have three-fourths and Fitzhugh one-fourth of any profits or (20 acres) of each location (which nowhere appears), still this would property uerived from the sale, disposition, or development of any of make Fitzhugh and wife dummies, as Henshaw would then have an auch propE>rty. Said contract further provided that a corporation interest in each location equivalent to 45 acres, and Fitzhugh and wife should be organized to which an properties should be conveyed, and that together only 15 acres. This is assuming, of course, that Henshaw's "in consideration of such conveyances said corporation shall issue to associates each bad an interest of 20 acres, which at all times must the parties hereto its entire capital stock in the following proportions : be done to give the locations validity. If it should be contended that •.ro the party of the first part-Fitzhugh-one-quarter thereof, and to this agreement gave Henshaw and associates a three-fourths interest in the party of the second part-Henshaw-three-quarters thereof." Hen­ the share of Fitzhugh and wife and .mutually gave the latter a one­ shaw uid not claim the right to a three-fourths interest because of rep­ fourth interE>st in the share of Henshaw and associates, then Henshaw resenting himself and five associates in each location, but because he would have had no basis whatever for the " claim " or cause of action was furnishing the money for the enterprise, as recited in a paragraph against Fitzhugh which be asserted, because the ultimate outcome of the contract of August 15, 1909, as follows: under such a construction would have resulted in Henshaw getting " Said party of the second part hereby covenants and agrees to ad­ three-fourths and Fitzhugh one-fourth of each location, which was not vance, from time to time during such period as be shall elect to finance Henshaw·s position at any time. It is impossible to arrive at any con­ said project as aforesaid, any and .all sums of money required to carry clusion other than that Henshaw set out to acquire for himself prac­ the interest of said party of the first part in said lands, leases, prop­ tically all of each location of 160 acres. erty, and corporation, and it is expressly understood and agreed by and The Reed interests, of Denver, Colo.-so called because they were between the parties hereto that twO.:quarters of said three-quarters' financed and controlled by Verner Z. Reed and associates-purchased the interest of said party of the second part is the consideration for the claims of Henshaw and Fitzhugh. The negotiations on behalf of the promise and covenant on the part of said party of the second part in Reed interests were conducted by Oliver N. Shoup, secretary and gen­ •this paragraph contained." eral manager of the Reed Investment Co., and Karl C. Schuyler, The contract of August 15, Hl01>, further provided " that upon the attorney. Fitzhugh conveyed to the Midwest Oil Co., a Reed company, organization of such corporation and issuance of stock thereof the stock on June 3, 1911, for a consideration of approximately 33 cents per to which said party of the first part is entitled shall be issued and banel for the oil. In this transactlon it was understood that Shoup delivered to said party of the second part (Henshaw) as trustee, who and Schuyler should· negotiate with Henshaw for a partition or segre­ shall hold the same in trust for said party of the first part for the gation of Fitzhugh's interest in each location ; accordingly they went term ot five years, with the power, and said party of the second part to California and entered into negotiations with Henshaw July 21, is hereby given and granted for said period of five years the full and 1911, whieh resulted in the Reed Investment Co. taking an option to complete power to manage, control, sell, hypothecate, and dispose of all purchase Henshaw's interest. Soon thereafter this transaction was of said stock so issued as aforesaid, and all the assets and property completed by conveyance to the nine " little Reed companies." of said corporation, or any part of either of said stock, assets, or Notwith tanding the fact that Shoup and Schuyler were the agents, property for the joint benefit of the parties hereto, as their interests representatives and attorneys of Fitzhugh as well as the Uidwest Oil are herein set forth, upon such terms and in such manner as the best Co., they purchased Henshaw's so-called claim or cause of action above judgment of said party of the second part may dictate and determine." mentioned against Fitzhugh and without Fitzhugh's knowledge. This provision, 1t will be perceived, gave Henshaw absolute control of This claim was taken in the na~e of one F. P. Evans, who assigned the enterp_rise. all rights and interests acquired by him to 0. H. Shoup, "trustee." Because of the uncertainty of this contract applying to the lands It is stated in an affidavit subscl'ibed and sworn to by Karl C. Schuy­ of the Salt Creek field, which they bad not yet located, a supplement ler on December 6, 1920, and submitted to the Secretary of the Interior thereto was executed November 16, 1909, as follows: December 7, 1920, that "affiant and -said 0. H. Shoup also felt that "This is to certify that the attached contract dated August 15, as soon as Fitzhugh's anger subsided he might and probably would 1009, between us, the undersigned, is hereby modified to the following be willing to pay the sum of $25,000 to clear the matter up, especially ell'ect .and extent, to wit: The said Fitzhugh shall have 25 per cent if the claim should be asserted to some one other than the Henshaw and the said Henshaw shall have 75 per cent of an profits made by the interests, and for thi-s reason the details of the transaction were not said Henshaw, either directly or indirectly, from all oil lands or oil disclosed to l<'itzhugh." At no time was Fitzhugh gi>en an opportunity or gas discovered or produced from any lands or oil or gas interests to settle the matter for $25,000. (Apparently his anger, like Tenny­ either may acquire in the State of Wyoming, or either have acquired son's brook, ran on forever and forever.) Two years thereafter be wn.s in the said State. This is intended to cover contracts, leases, convey- sued on this claim in Natrona County, Wyo., not in the name of ances, and other and all manner of methods of acquisition." • Shoup or Schuyler or any of the Reed companies but by the California It would seem that no further evidence is necessary to prove con­ Oil Lands Co., a concern organized by Shoup and Schuyler in California clusively the fraudulent scheme of these parties; but if so, it may be for the sole purpose of bringing the suit. Not then did they let Fitz­ found in the record of the case of Wm. M. Fitzhugh et al. v. The hugh know that they bad bought the " claim " and were " after him." Midwest Oil Co. et al., in the District Court of the Un:Ued States for They still pretended to be his friends and counsellors and that Henshaw the District of Arizona, in the testimony of both William G. Henshaw was " the villain who still pursued him." They urged him by every and William M. Fitzhugh. For brevity I will not quote this testi­ conceivable artifice to settle, not for $25,000 but for 19 per cent of mony, bot will refer to the "Memorandum on the bona fides of the what be was to receive for his oiL Fitzhugh-Henshaw group of locators," submitted by A. B. Bouton, Esq., Fitzhugh in 1917 learned that he bad been deceived, swindled, and special assistant to the United States attorney, dated March 1, defrauded, and soon thereafter filed suit against Shoup, Schuyler, the 1920, wherein the pertinent parts may be found. In all the testimony Midwest Oil Co., et al. in the District Court of the United States for and statements of thE.>se parties, in their correspondence and in tbei.r Arizona, alleging the fraud and deceit above stated. This suit was contracts, it nowhere appears that any locator, except William G. Hen­ compromised and all the interest in the Salt Creek field purchased for shaw and William M. Fitzhugh, bad any interest whatever; and William the sum of $2,250,000. G. Henshaw claimed the " lion's share " of the profits and the right to IB.A. AND OTHER LOCATIONS control, because he furnished the capital. The contracts were executed A large number of locations on the field were made under the placer by and between William G. Henshaw and William M. Fitzhugh only; mining law prior to the locations made by Henshaw and Fitzhugh. and it does not appear that the other locators were represented therein So-called claims of title issuing from these locations have been acquired or that their rights, if any, were taken into consideration. _The pro­ by the applkants, and it is contended that thes~ claims confer prefer­ visions for the distribution of the profits and for the division of the ential rights to leases. Space will not permit us to detail the facts capital stock of the corporation to be organized brand the locators as relative to these numerous location ; in fact, we must be content with dummies, the locations illegal, and the whole plan as a fraud on the stating conclusions only. Evidence is abundant in contracts and docu­ Jaw and on the Government. ments of record, in statements, affidavits, and sworn t estimony, that The above analysis of the agreement between Ilenshaw and Fitzhugh these locations are fully as bad as those made by Henshaw and Fitz­ makes the locations bad enough, but let us consider brie.tly the inter­ hugh. They were and still are void and in violation of the law, because pretation thereof by Henshaw and later by his grantees. Henshaw con­ none of said locations was made and maintained in good faith for the tended that as the agreement of November 16, 1909; provided "The use and benefit of the locators, each with ap interest not to exceed 20 said Fitzhugh shall have 25 per cent, and the said Henshaw shall have acres of each tract, and none of said locations was made in good faith 75 per cent, of an profits made by the said Henshaw, either 'directly for the purpose of developing the petroleum resources of any of said or indi.re~tly, from all oil lands or oil or gas discovered or produced tracts by the named locators, but were made in every case for the pur- 6518 CONGRESSIONAL RECORD-SENATE APRIL 16 pose of excluding real prospectors from the land, by a pretense of with respect to a matter within the scope of his authority, or apparent complying with the law until the locations could be sold at a profit to authot·ity, ts notice to or knowledge of the corporation. (Simmons the real party in inten~st. Creek Coal Co. v. Doran, 142 U. S. 417, 436; McCaskill Co. v. United As many as eight locations were made on the same tracts, some as States, 216 U. S. 504, 515; Armstrong v. Ashley, 204 U. S. 212, 282; early as February, 1 3; but most of them were entirely abandoned. United States v. Coal Co., 246 Fed. 485 ; Mutual Investment Co. v. However, the locations made by one Cy Iba, in 1887, are alleged to have Wildman, 182 Ill. A. 137; Griffifh v. Royal Arcanum, 182 Mo. A. 6!4, some vitality. As eviaence of the "dummy" character of these loca­ 656 ; Clark and Marchall on Coeporations, vol. 3, sees. 718-724; Cook tion , we quote from' &. power of attorney to Iba from his colocators, as on Corpot·ations, 6th ed., vol. 3, sec. 727; 10 Cyc, 101:i3-1062.) follows: When a corporation once gets knowledge, it continues to have It * * "and having located the same, to appropriate the same to even though the officer or agent through whom the knowledge was his sole use, together with all the right, title, and interest in the same, obtained is no longer in its service. (Mechanics Bank v. Seton, 1 Pet. we selling and conveying the same to him as our grantee, for a valuable (U. S.) 299, 7 L. 3d. 152; 10 Cyc. 1062, par. 2; Birmingham Trust consideration." * • * Co. v. Louisiana National Bank, 99 Ala. 379, 13 S. 112, 20 L. R. A. (This is an example of volumes of evidence that might be included 600; United States National Bank v. Forstedt, 64 Nebr. 855, 90 N. W. herein.) !>19; Bird v. New York Central, etc., Railroad Co., 64 App. Div. 14, 71 Iba used the names of more than 100 persons from whom he obtained N. Y. S. 734 (A.ff. 172 N.Y. 637 mem., 65 N. E. 1113 mem.).) pow<:' rs of attorney containing the above-mentioned provision, before the JllXCESS ACREAGE locations were made. None of his colocators ever claimed any interest Even should the question of fraud be decided in favor of the appli­ or received any benefits or profits. Certain of the above-named applicants before they had settled their cants, then they a re entitled to leases in the Salt Creek field for 3,200 acres only. differences and joined in their common cause against the United States, alleged and contended, in a number of "adverse" proceedings in the Let us examine the so-called " relief " provision of the act, sections district court of Natr()Ila County, Wyo., that the Iba locations were void 18, 18a, and 19. and unlawful, becau e the locators were dummies and the locations Section 18 provides : were entirely abandoned long prior to the order of withdrawal. Surely "That not more than one-half of the area, but in no case to exceed these same applicants will not now be permitted to avail themselves of 3,200 acres, within the geologic oil or gas structure of a producing oil the claims that they once contended were so bad. or gas field, shall be leased to any one claimant under the provision The question naturally presenting itselt is why were so many loca­ of tbis section when the area of such geologic oil structure exceeds tion~:~ made, and why were they invariably bad. The reason is simple. 640 acres. Some ambitious individual who had acquired some knowledge of the oil "All leases hereunder shall inure to the benefit of the claimant and business would hear something about the prospects for oil at Salt Creek. au persons claiming through or undet• him by lease, contract, or other~ Such an individual, of course, was not content with one location of 20 wise, as their interests may appear; &object, however, to the same acres. or a number of locations in which he had an interest of only limitations as to area and acreage as is provided for claimant in this 20 acres, so be would borrow the names of his ftiends and relatives section_ and proceed to locate for his own use and benefit >ast areas of the " That no lease or leases under tbis section shall be granted, nor public lands. Generally no pretense was made at complying with the shall any interest therein inure, to any person, association, or cor­ law in any respect, except to make the "paper" locations so as to poration for a greater aggregate area or acreage than the maximum acquit·e a color of title which might be soltl at a profit to some real oil in this section provided for." operator or promoter. Section 18a does not expressly provide an acreage limitation. For several years delegations appeared before Congressmen, Senators, Section 19 provided that certain pet·sons shall be entitled to prospect­ and other officials be eeching "relief " for the poor, honest, oppressed ing permits upon " the same terms and conditions and limitations as to pt·ospectors, who were much discussed, but in truth unknown to the acreage as other permits provided for in this act." history of the Salt Creek field. If such ever existed, they have long The question is, How great an acreage is an applicant entitled to since, at the behest of the Midwest interests vi et armis or otherwise under the act? Was it contemplated that an applicant should be lim­ passed on. ited to a lease of 3,200 acres withiP the geologic oil or gas structure of KNOWLEDGE OF FRAUD a producing oil or gas field, or that an applicant should be entitled to The contracts above mentioned, between Henshaw and Fitzhugh, 3,200 acres under section 18, an unlimited acreage under seci:ion 18a, were on record in Natrona County, Wyo., wherein the Salt Creek field is and 2,560 acres under section 19? Of course, the act should be con­ situated; therefore, every applicant basing a claim on the Henshaw­ sidered and construed as a whole. Undoubtedly the intention of Con­ Fitzhugh locations had notice of their contents, and consequently of gress in providing an acreage lin1itation was to prevent monopoly, to their fraudulent character. The Iba powers of attorney likewise were insure competition. and to extend the privileges to the many and not of record. Moreover, the applicants had actual knowledge of the to the few. To accomplish this purpose applicants are limited by the fraud, by and through the knowledge, acts, and conduct of their incor­ act to a maximum of 3,200 acres. Any other construction would, in pora tors, officers, and agents. effect, invalidate the acreage limitation provisions and circumvent the Shoup and Schuyler from the beginning knew of the scheme of Hen­ clear intention of Congress. shaw and Fitzhugh. Because of the provisions in their contracts, which The d <' sire to limit the acreage to each applicant is discernible " gave Henshaw control of Fitzhugh's interest, they secured a ratification thl:oughout the act. In section 13, the first on "Oil and gas1 it is pro­ by Henshaw of their transaction with Fitzhugh in which he conveyed vided that a permit shall be gt·anted to prospect for oil and gas on not to the Iidwest Oil Co. The document signed by Henshaw expressly to exceed 2,360 acres. Section 14 provides that it the permittee dis­ mentions his agreements with Fitzhugh of August 15, 1909, and Novem­ covet·s valuable deposits of oil or gas, be shall be entitleu to a lease on ber 16, 1909. These agreements are also mentioned in Henshaw's one-fourth of the land embraced in the permit at a royalty of 5 per as ignment of his "claim" against Fitzhugh to Evans. cep.t and shall be entitled to a. preference right to a lease on the re­ Shoup, Schuyler, and Reed organized the Midwest Oil Co., the Reed mainder of the land embraced in the prospecting permit at a royalty of Investment Co., also the Crescent Oil Co., Control Oil Co., Bluestone not less than 12¥.! per cent. Section 17 provides that all unappro­ Oil Co., Barbados Oil Co., Pinero Oil Co., Seattle Oil Co., California Oil priated deposits of oil or gas situated withln the known geologic struc­ Co., Fitzhugh Oil Co., and Henshaw Oil Co., commonly called the "Reed ture of a producing oil or gas field and the unentered lands containing companies." They becarne the principal stockholders, officers, and the same not subject to preferential lease may be leased to the highest directors; and bad the active management and control of all of these bidder, in areas not exceeding 640 acres. When it comes to section 18, companies. the first of the so-called relief provisions, Congress, in its liberality in '!'he Midwest Oil Co., which acquired Fitzhugh's interest, is an appli­ extending a preferred right to honest claimants, goes further than in cant for leases to 1,970 act·es of the field. The Reed companies, which the preceding sections and increases the limitation to 3,200 acres. Sec­ acquired the interest of Henshaw, conveyed to the Wyoming Associated tion 18a in the original draft of the act iu the House was a part of Oil Corporation, an applicant for leases to 5,963 acres of tile field. section 18; and it was by amendment at a late hour of its consideration The latter was organized by the same group of promoters, and their that it was separated from section 18. All of the provisos of section knowledge of the fraud was knowledge to this applicant. 18, such as the provision relative to the naval petroleum reserve, the The applicants are all subsidiari~s of the Midwest Refining Co., all question of fraud, the acreage limitation, etc., were not painstakingly {)rganized by the same promoters and capitalists, all having very largely added to 18a; but undoubtedly all these provisions were intended to an identity of officers, stock ownership, management, and control. None a pply to 18a the same as to 18. In fact, 18a is in a sense another of them were strangers to the true situation or innocent purchasers in proviso to 18 wbich authorizes the President to direct the compromise nny sense. of a controversy by an exchange or division of land (very desirable The general rule of law is that notice of a !act acquired by an agent under certain conditions) or the proceeds of operation. Will the idea while tra nsacting the business of his principal operates constructively be indulged that this section authorizes the President to direct the as notice to his principal; and as corporations ft•om their nature can gt·anting of a l"ease to a claimant guilty of fraud, or to an unlimited never act except through the instrumentality of agents, this principle 11creage, or that it extends any greater measure of relief in any case applies with peculiar force to th<> rn. Notice to or lmowleuge of an officer than S<' Ction 18? If so, many of the provisions of the act absolutely or agent of a corporation obtained in the course of his employment, and are of no avail. It merely authorizes, first, the President to make or l928 CONGRESSIONAL RECORD-SENATE 6519 .airect a settlement, and, second, to make it in a. different manner from (d) The Petroleum Maatschappij Salt Creek applied for a lease to 160 that authorized by section 18; but it is not intended that such a ~ttle­ acres for the. reason that its name had been used in a patent applica­ ment shall violate the provisions of section 18. tion. It long ago conveyed to the Wyoming Oil Fields Co., whose stock Section 19 is for the purpose of protecting a. bona fide claimant who is all owned by the Salt Creek Producers Association; but the Midwest had not made a discovery on or before tbe passage of the act. It Refining Co., by owning 32 per cent of the stock of the Salt Creek authorizes the granting of prospecting permits to claim~nts "upon Producers Association, is interested to the extent of 31 acres. the same terms and conditions and limitations as to acreage as other (e) The Salt Creek Consolidated Oil Co. has applied for 2,347 acres, permits provided for in this act." It further provides, "where any but 50 per cent of its stock is owned by the Wyoming Oil .Fields Co., such person bas heretofore made such discovery, he shall be entitled to a Wyoming Associated Oil Co., and the Midwest Oil Co. The Salt Creek lease thereon under such terms as the Secretary of the Interior may Producers Association owns the Wyoming Oil Fields Co. and 52 per prescribe, unless otherwise provided for in section 18 hereof," clearly cent of the Wyoming Associated Oil Corporation. The Midwest Refining indicating that the lease must be granted under section 18 if the Co. owns 32 per cent of the Salt CJ;'eek Producers Association and the facts are such as to bring it within the provisions of that section; Mountain Producers Association, and is therefore interested in these and if the claimant already bad the maximum under section 18, then applications to the extent of 278 acres. of course no further lease could be granted. In this connection it is (f) E. J. Sullivan, "trustee," bas applied for leases for 560 acres, not important to note the provisions of section 18 : " That no claimant disclosing for whom be is acting; by written agreement (not of record), acquiring any interest in such lands since September 1, 1919, from a the Salt Creek Consolidated Oil Co. and the E. T. Williams Oil Co. are claimant on or since said date claiming or holding more than the each to have one-half ()f the lands if the leases are granted. As stated maximum allowed claimant under this section shall secure a lease under (e), 50 per cent of the Salt Creek Consolidated Oil Co. is owned thereon or any interest therein, but the inhibition of this proviso shall by the Wyoming Oil Fields Co., the Wyoming Associated Oil Corporation, not apply to an exchange of any interest in such lands made prior to and the Midwest Oil Co., and that the Salt Creek Producers Association the 1st day of January, 1920, which did not increase or reduce the owns 66 per cent of the Midwest Oil Co. The Mountain Producers area or acreage held or claimed in ~xcess of said maximum by either Association owns 52 per cent of the Wyoming Associated Oil Corporation party to the exchange." It will be seen that anyone who claimed an and the Midwest Refining Co. owns 32 per cent of both the Salt Creek . area in excess of 3,200 acres should not receive any benefit from the Producers Association and the Mountain Producers Association, and excess, either by obtaini'ng a lease thereon or J:>y the sale thereof, the therefore has an interest of 32 acres. idea being that a lease or leases on as much as 3,200 acres would be (g) The Mountain & Gulf Oil Co. bas applied for 960 acres, section ample relief to any claimant. When the maximum is granted under 6, township 39 north, range 78 west, and the north half of section 11, section 18, surely an accitional acreage is not permissible under section township 40 north, range 79 west. The New Bradford Oil Co. (predeces­ 18a or 19. sor of the Salt Creek Consolidated Oil Co.) and the Northwestern Oil Let us next consider who these applicants are and for what they are Co. at one time bad an interest in section 6, but we have not the evi­ asking. dence to give the present ownership of this section. 'l'he north half The applicants are "the allied and associated powers." They are of section 11 wa.s leased by the Parkman Oil Co. to B. D. Townsend, closely related by conti"act, by stock ownership, and by corporate offi.. one-tenth of the oil being reserved to the Parkman Oil Co. Townsend cials and directorates. assigned to the National Petroleum Co., who assigned to the Mountain & By the time oil was being produced in any considerable quantities GuLf Oil Co., reserving 40 per cent of the net profits. The National the Salt Creek field in one way or another had passed largely into the Petroleum Co. deeded its interests to the Salt Creek Producers Asso­ hands of the Midwest Oil Co., the Reed companies and the " Franco " ci~tion. Apparently, then, 10 per cent is owned by the Parkman Oil Co., companies (commonly so called because they were organized and con­ 36 per cent by the Salt C1·e.ek Producers Association, and 54 per cent . trolled by citizens of France, Belgium, and Holland). These companies, by the Mountain & Gulf Oil Co. The Midwest Oil Co. owns 95 per cent for the purpose of combining their claims and interests into one of the Parkman Oil Co. and the Salt Creek Producers Association owns operating company, early in 1914 joined in organizing the Midwest 66 per cent of the Midwest Oil Co. The Midwest Refining Co. owns 3.2 Refining Co., which in the beginning was made the biggest and most per cent of the Salt Creek Producers Association, and therefore bas an powerful of all the concerns interested in the field. It was made the interest equal to 43 acres. overlord of the domain by contracts between it and its creators, which (h) The New York Oil Co. and the Midwest Oil Co. have applied for in substance gave it the exclusive right for a period of 20 years, from 160 acres--the southwest half of section 13, township 39 north, range 79 January 1, 1914, to possess and mine for oil the lands claimed by west. We do not know the facts relative to the interests involved, but · these companies respectively, and to possess and operate all pipe ,lines, have evidence that the New York Oil Co. is now controlled by the Mid- refineries, wells, tanks, machinery, and equipment already installed west inte1·ests. · for the extraction, storage, transportation, and refining of oil. The Midwest Refining Co. agreed in substance to extract the oil from (i) The New York Oil Co. and the Northwestern Oil Co. are applicants said lands, transport it to the refineries, refine it, sell the refined for 480 acres--the southwest half of section 34 and the south half of products, and to pay said companies one-half of the net proceeds of the section 1. The New York Oil Co. has a royalty interest of one-eighth refined products of the oil extracted from the lands claimed by them, in the southwest quarter of section 34, the balance going to the North­ respectively. These contracts are in reality leases. The result, if not western Oil Co., which is owned by the Boston-Wyoming Oil Co., and 41 one of the chief purposes of the organization of the Midwest Refining Co., per . cent of the latter is owned by the Midwest Oil Co., which would was to secure a complete monopoly of the entire product of the field and give it 35% per cent interest in this 160 acres. The New York Oil Co. thereby enable it as the creature and agent of the combining claimants bas a 23:JA, per cent interest in the south half of section 1. The Mid­ to purchase the crude oil produced from the few remaining tracts of the west Oil Co. bas a 10% per cent interest, plus the 41 per cent of the field at the cheapest possible price. The lands of the field not claimed interest of the Boston-Wyoming, which makes its total interest in the by said combining companies were in the hands of various small south half of section 1, 28%, per cent, or 149.3 acres. The Salt Creek operators, who, in order to dispose of the oil they produced, were Producers Association, owning 66 per cent of the 1\fidwest Oil Co. would forced to enter into long-term contracts to sell such oil to the Midwest have an interest equal to 98 acres and the Midwest Refining Co., Refining Co. at a price arbitrarily fixed by it. Consequently, no lease to owning 32 per cent of the Salt Creek Producers Association, would have any part of this field can be granted that will not inure to the 31 acres. benefit of the Midwest Refining Co. In fact, a lease to any of the appli­ (j) The National Petroleum Co. has applied for 960 acres formerly cants above mentioned is indirectly a lease to the Midwest Refining Co. claimed by the Parkman Oil Co., who leased to B. D. Townsend who ANALYSIS STOCK OWNERSHIP assigned to the Nationai Petroleum Co. This lease was assign~d by An analysis of stock ownership will throw considerable light on the the National Petroleum Co. to T. A. Dines, a vice president of the respective interests of the Midwest Refining Co. and the applicants. Midwest Refining Co., and we assume that any interest acquired by him (a) The Mountain Producers Association owns 52 per cent of the went direct to the Midwest Refining Co. The National Petroleum stock of the Wyoming Associated Oil Corporation, an applicant for Co. retained a 40 per cent interest. Therefore 10 per cent goes to the 5,963 acres. •.rhe Midwest Refining Co., by owning 32 per cent of the Parkman Oil Co., 36 per cent :to the National Petroleum Co., atld 54 Mountain Producers Association, is interested in these applications to per cent to T. A. Dines. The Midwest Oil Co., owning 95 per cent the extent of 992 acres. of the Parkman Oil Co., the Salt Creek Producers' Association, owning (b) The Salt Creek Producers Association owns 60 per cent, possibly 66 per cent of. the Midwest Oil Co., and the Midwest Refining Co., 76 per cent, of the stoek of the Midwest Oil Co., applicant for 1,970 acres. owning 32 per cent of the Salt Creek Producers' Association, plus the The Midwest Refining Co., by owning 32 per cent of the stock of the Dines' share, would have an interest equal to 538 acres. • Salt Creek Producers Association, has an interest in these lands equal (k) The Federal Oil & Development Co. bas applied for 320 acres, to 416 acres. which was leased by it to B. D. Townsend, reserving a royalty of (c) The Wyoming Oil Fie1ds Co. owns all the stock of the Central 15 per cent. This lease was assigned by Townsend to the National Wyoming Oil & Development Co., an applicant for 920 acres. The Petroleum Co., who assigned the northeast one-half of_ section 13 to Salt Creek Producers Assaciation owns all of the stock of t~ Wyo­ T. A. Dines, and the southeast one-fourth of section 13 to the Moun­ ming Oil Fieldi! Co .. and the Midwest Refining Co., by owning 32 per tain & Gulf Oil Co., reseryjng in each instance a royalty of 40 per cent cent of the stock of the Salt Creek Producers Association, has an inter­ of the net profits. The · National Petroleum Co. and Dines then con­ est in these applications equal to 294 acres. veyed to the Salt Creek Producers' A.ssocta~on for stock in the latter. 6520 · CONGRESSIONAL RECORD-SENATE APRIL 16 Then the F ederal Oil & Development Co. holds an interest of 15 per Petroleum Co. and Dines then conveyed to the Salt Creek Producers' cent, the Mountain & Gulf Oil Co. 251h per cent, and the Salt Creek Association. The Midwest Oil Co. owns 95 per cent of the Park­ Producers' Association 59% per cent, t he interest of the latter being man Oil Co. ; the Salt Creek Producers owning 66 per cent of the 190 acres, of which the Midwest Refining Co. is credited with 32 per Midwest Oil Co. and all the interest of the National Petroleum Co. and cent, or 61 acres. Dines, has an interest of 154 acres, of which 32 per cent, or 49 acres, (1) The Parkman Oil Co. has applied for 160 acres, which it leased is credited to the Midwest Refining Co. October 1, 1915, to B. D. Townsend, reserving a 10 per cent royalty ; By using the above-mentioned percentages of stock ownership, the Townsend assigning to the Na tional Petroleum Co.; and it assigned acreage applied for by the respective claimants, .and the total acreage to T. A. Dines, reserving 40 per cent of the net profits. The National applied for, we compile the following :

Wyoming Salt Creek Mountain Midwest Corporations I c~~:o~~~~d I Wyoming Oil Associated Oil Midwest Oil Petroleum Products Refining Oil Co. Field Co. Corporation Co. Association Association Co. Applicants

~ ~ ~ - ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ (acres) cent (acres) cent (acres) cent (acres) cent (acres) cent (acres) cent (acres) cent (acres) cent ------·l----1---·------Wyoming Associated Oil Corpora- tion______5, 963 39.95 ------5, 963 39.95 ------3, 101 30.78 992 6.65 Midwest Oil Co______I, 970 I3. 2 ------1, 970 13.2 1, 300 8.17 416 2. 79 Central Wyoming Oil & Develop- ment Co ______920 6.16 ------920 6.16 ------920 6. 16 294 1. 97 Petroleum Maatschappij Salt Creek_ 160 1.07 ------160 1.07 ------~------160 1.07 51 . 34 Salt Creek Consolidated Oil Co ___ _ 2,347 15. 7 2, 347 15. 7 391 2. 62 391 2. 62 391 2. 62 649 4. 35 203 1. 36 273 1.83 E. J. Sullivan, trustee ______560 3. 75 280 1. 9 46. 6 . 31 46. 6 . 31 46. 6 . 31 77 . 52 24 .16 32 .22 Mountain & Gulf Oil Co ______640 4. 3 Do ______320 2.15 New York Oil Co ______120 .8 New York Oil Co. and North- western Oil Co______480 3.2 ------149.3 I 98 .66 ------31 .21 National Petroleum Co______900 6. 5 ------91 • 61 60 . 4 ------538 3. 6 Federal Oil & Development Co____ 320 2.15 ------190 1. '1:7 ------61 . 41 Parkman Oil Co______160 1. 07 ------15 1 I54 1. 03 ------______49 . 33 TotaL______14,920 ~ ~ 2, 627 ~ ~ 1, 517.6 1o.l6 6, 400.6 42.88 2,693 ~ 3,743 --;5,Q7 ~ 32. 30 2, 780 18.64

List of 10 individual largest holdings of capital stock in Midwest Refining Co. Total outstanding capital is $25,000,000, divided into 500,000 shares, of the par value of $50 each. Henry Bondonnea u, Paris, France______5, 900 " Petroleum Maat chappij Salt Creek. C. W. Burdick, president; Chopy & Co., Paris, France______5, 904 A. C. Campbell, vice president; B. 0. Lumm'i.s, secretary; H. C. Bret­ Equ~table Trust Co., n·ustee for Mrs. Mary D. Reed______7, 500 Eqmtable Trust Co., trustt e for Verner Reed______7, 500 schneider, treasurer; Wilfred O'Leary. Verner Z. Reed-- ~ ------12, 144 "New York Oil Co. Frank G. Curtis, president; Alonzo G. Setter Wyoming Secm·ities Co------7, 335 Debenture & Securities Corporation ______11, 487 and II. D. Curtis, vice presidents; Minai E. Young, secretary-treasurer; 0. Nelson llushworth, Robert B. Stewart, Maxwell W. Winter. Axthur S. GibbS------30, 1 0 International Securities Investment Corporation ______15, 461 " Northwe ·tern Oil Co. A. D. Aitken, president; L. L. Aitken, vice P. E. DeCaplane, Paris, France------5, 600 president; (A. W. Warren, secretary-treasurer) ; C. A. Fisher, H. L. Were a list of the largest stockholder!.i in a number of the corporate Ritter, C. C. Dillard. applicants accessible the names of those mentioned in the lists above "National Petroleum Co. B. D. Townsend, president; F. C. Rabb, would again be found. vice president; Hugh Thompson, secretary-treasurer. Therefore, not only because of the contractual rela tionsbip but also "Federal 011 & Development Co. H. L. Ritter, president; H. J. because of the interlocking stock ownership of the respective corpora­ Barry, secretary; A. D. Aitken, treasurer; Valentine Mix, Maurice W. tions in e:;~.ch other and of the large stocklloldet·s, do we find the same Samuels. control and the same interests subserved in each and every application. "Parkman Oil Co. Eugene Mackey, president; H. L. Ritter, vice president; D. S. Hare, secretary-treasurer; E. G. Quinn, Janet Mackey." OFFICERS AND DIRECTORS A list of the officers and directors of the Midwest companies is in­ CONCLUSION teresting. The names appearing in parenthesis are officers but not The paramount reason urged by applicants in support of their directors, the other officers being members of the board of directors in claims is that they innocently s.nd in good faith have expended vast each instance: sums in the dev~lopment of the field, but the true facts render this "The Midwest Refining Co. H. E. Blackmer, president; R. D. contention impotent, because almost all the capital used, not only for Brooks, T. A. Dines, R. S. Ellison, vice presidents; (C. E. Titus, sec­ development but also to purchase claims, was the money received for retary); (H. H. Brooks, treasurer); L. A. Reed, Tyson S. Dines, H. C. the oil taken by these tt·espassers ft·om the public lands. So resourceful Naylor, E. S. Osler, John D. Clark. were these promoters and capitalists that at no time did they risk any "Mountain & Gulf Oil Co. R. M. Aitkin, president ; L. L. Aitken, considerable part of their own means. '!'hey let the property pay for vice president; A. C. Cam'pbell, secretary-treasurer; H. L. Ritter, T. A. itself and for its development. It will be remembered that the l:i'itz­ Dines, Vernon F. Taylor, Ralph Hartzell. hugh claims we1·e secured by an agt·eement to purchase the oil to be "Salt Creek Producet's Association. N. S. Wilson, president; T. A. pt·oduced, at 33 cents pet· barrel, only $10,000 in this case beiug Dines, vice president; T. A. Pedley, secretary-treasurer; H. A. De­ advanced; and that the Henshaw claims were purchased fot· $325,000, Compiegne, B. D. Townsend. but this consideration was not paid till it was derived from the oil. "Midwest Oil Co. · L. L. Aitken, President; W. P. Schuyler, vice Any other capital that was used very largely came from France and presiucnt ; (T. A. Pedley, secretary-treasurer) ; J. L. Warren, C. A. IIolland. The ct·owd asking such valuable concessions at the hands Fisher, H. L. Ritter, R. H. Forbes. of the Government already have become immensely wealthy at its " Salt Creek Consolidated Oil Co. James Owen, president; Warwick expense. They have no equities wot·thy of consideration. It is true M. Downing, vice president; (F. C. Roberts, secretary-treasurer) ; C. E. that stocks have been EOld to tlle public, but surely the Government Abbott, L. L. Aitken, F. S. Mitchell, Norwood Johnston, N. S. Wilson. should not sacrifice t11e public property, a greatly needed natural "Mountain Producers Association. John T. Barnett, president; resource, to make these oil stocks good. George T. Eardley, vice president; J. L. Wat·ren, secretary-treasurer; The Midwest Refining Co. has an absolute monopoly of the Salt Harold D. Roberts, A. C. Cam'pbell. C1·eek field, and in one way or another controls every one of the above­ "Wyoming A sociated Oil Corporation. John T. Barnett, president; named applicants. It is interested in every acre sought by them, and D. M. Barrington, vice president; J. L. Warren, secretary-treasurer; a lease to any one of them will inure to its benefit. Its claims are F. C. Roberts, Verner Z. Reed, jr. based on titles that are thoroughly saturated with fraud, and from " ':Vyoming Oil Fields Co. Otto Gramm, president; C. W. Burdick, the beginning its promoters, officers, and directors unquestionably have • vi(} president; B. 0. Lummis, secretary; (H. C. Bretschneider, treas­ had full knowledge of tbe fraud. It not only is not acting honestly urer) ; W. ll. Dubois, H. E. Mason, Patrick Sullivan, A. D. Johnston. and in good faith, but it now is compounding fmud by seeking to "Natrona Pipe Line & Refinery Co. C. W. Burdick, president; A. D. secure leases on a greater acreage than tbe maximum allowed by law. Johnston, vice president; A. C. Campbell, secretary ; H. C. Bretschnei­ For several years it maintained a large force of paid lobbyists, lawyers, der, treasurer; B. 0. Lummis, W. E. Mullin, S. Ledeboer. and agents at the Capitol to secure the passage of the act with the " Central Wyoming Oil & Development Co. H. C. Bretschneider, relief provisions included, and, evidently, it will continue so to do till president; C. W. Burdick, vice president; (E. Percy Palmer, secretary­ its subsidiaries have secured leases thereunder. They are not "in the treasurer) ; A. C. Campbell, A. D. Johnston, L. A. Thompson, jr. com·t with clean hands." 1928 CONGRESSIONAL RECORD- SENATE 6521 When the leasing bill was before Congress it was emphatiea.Ily Why are armed forces of the United States carrying on an unde­ asserted and maintained that the Standard Oil Co. had no interest clared war against Nicaragua? This is a problem that is puzzling many whatever in the Midwest Refining Co. or the applicants, and that it Members of Congress-which, under the Constitution, has the sole was- not concerned with the relief provisions, but now it is conceded right to declare war-and a large and growing number of citizens of that the Standard Oil Co. of Indiana absolutely controls the Midwest the United States are asking the same question and searching in vain Refining Co. Only a little while ago the Government was courageously for a satisfactory explanation. engaged in "dissolving" the Standard Oil Co., but now it is requested It was generally supposed that President Coolidge would defend, or to dispense relief to this object of charity and to bestow ·upon it leases at least deign to explain his " private war " against Nicaragua in his to the most valuable known oil acreage in the world-public property address at the opening of the Pan American conference. He dealt of the value of at least $1,000,000,000. Is this the character of claim­ only in platitudinous generalities, and since then Mr. Hughes has ex­ ant Congress intended to relieve? ercised all his diplomatic talents to keep the conference from so much The relief provisions extend rights and privileges to claimants which as verging upon the topic of intervention. Pressure--polite, but un­ they. did no.t have under the preexisting law and enable them to take mistakable pressure--has been exerted to prevent other South and Cen­ advantage of claims they could not establish or defend in the courts ; tral American delegates from speaking out of turn. The whole confer­ therefore, the law very justly confines the relief to honest claimants ence has been a make-believe, a sham, revolving around certain incon­ and limits them to leases on a maximum of 3,200 acres. sequential points, while underneath a great and growing resentment This matter demands the most careful consideration, and, under the simmers among the press and people of the nations to our south over circumstances, leases should not be granted on an ex parte showing, our bullying policy of " dollar diplomacy." but a hearing before the register and receiveF of the local land office Certainly, "dollar diplomacy" is the only phrase which accurately in Wyoming should be ordered, so that all the evidence pro et con describes our almost uninterrupted record o! interference with the in­ may be taken, a complete record made, presented, and fully considered ternal affairs of Nicaragua for the past 18 years, and when the whole before a final action is taken. sordid story of our relations with Nicaragua is written every American Respectfully submitted. who holds true to our traditions will hang his head in shame. From ROBE1,RT C. BELL, the beginning-back in 1909-our interference in Nicaragua has been SpeCYiaZ Assistant to the Attorney General. in behalf of certain Wall Street banking interests who sought profit­ JANUA.ltY 18, 192J. able investments at unfair terms. Brown Bros., J. & W. SeUgman & Co., and more recently the Guaranty NAVAL APPROPRIATIONS Trust Co., all of New York, are tne flies in the Nicaraguan ointment. The Senate, as in Committee of the Whole, resumed the Other American concession seekers and holders-notably, the La Luz & consideration of the bill (H. R. 1..2286) making appropriations Los Angeles Mining Co.-have played a part, but the State Department for the Navy Department and the naval service for the fiscal policy has been built arounrl the concessions of Nicaragua to Brown year ending June 30, 1929, and for other purposes. Bros., J. & W. Seligman Co., and the Guaranty Trust Co. ( Mr. BLAINE. Mr. President, I ask unanimous consent to For the past 14 years these bankers, or their subsidiaries, have owned have printed in the RECoRD an article entitled "Why are we in and controlled the majority stock of the Nicaraguan National Bank Nicaragua? " written by the distinguished junior Senator from and the Nicaraguan National Railroad-two immensely profitable public Montana [Mr. WHEELER], published in Volume II, No. 5, the utilities-which were reorganized as American corporations under the May, 1928, issue of the periodical known as Plain Talk. laws of the States of Maine and Connecticut and granted blanket con­ The PRESIDING OFFICER. Without objection, it is Sf) cessions which gave them control of nearly every basic phase of the ordered. economic life of the Nicaraguan people. These are the two most re­ The article is as follows : markable concessions that have ever been granted in the history of any WHY ARE WE IN NICARAGUA ? country, I think-with the possible exception of the case of Haiti, where By Senator BURTON K. WHEELER extraordinary grants were made to the National City Bank folk. (Was the Pan American conference at Habana a sincere efl'ort to What a rank injustice that the Nicaraguan National Bank and cultivate a golden rule among the countries of the Americas, or was it National Railroad, both institutions which were operating long before a smoke screen to make Wall Street exploitation look well? Why have our bankers appeared on the scene, should be reincorporated in thi'i our marines killed 600 Nicaraguan "bandits," and do bandits run in country and have to pay State and local taxes and an income tax to the such large numbers anywhere? Is our State Department in Washington United States Government! And why should the national revenue of or down-town New York? Senator WHEELER asks these questions--and Nicaragua be kept on deposit in New York banks, often not drawing interest, while the Nicaraguan Government is compelled to pay as high answers them.) When President Coolldge recently opened the Sixth Pan .American as 9 per cent of th'at amount to forced Loans? Conference at Habana he solemnly declared that in its relations with - An American collects the customs of Nicaragua at a salary of $10,000 neighboring Latin-American Republics the United States was actuated a year. Another $10,000-a-year American is " high commissioner." only by the principles of the golden rule. At every opportunity since Another $10,000-a-year American is inspector general of internal• rev­ Charles E. Hughes and other "official spokesmen" have stressed the enue. Two Americans, one drawing $12,000 and the other $10,000 a beneficent effects of our former " occupations" of other Caribbean Re­ year, control the Nicaraguan Mixed Claims Commission. A retired publics, reiterated that our " intervention" in Nicaragua was a step United States Marine officer is commander in chief of the Nicaraguan reluctantly taken only after repeated requests from both political fac­ National Guard and an of its 92 officers are citizens of the United tions of Nicaragua., and promised that we would withdraw as soon as States. Americans manage the national bank and the national rail­ the people of that unhappy Republic prove they can conduct their own road. Americans supervise the Nicaraguan elections and high-priced affairs without endangering "American lives and American property." "sanitary experts," " fiscal advisors," and attorneys have cost the As an American citizen, I would be proud and happy to indorse these Nicaraguan people countless thousands of dollars in the last 17 years protestations if I could accept them at their face value. Certainly, no while they have been denied the fundamental human right of conducting fault can be found with the moral accents of the language employed by their own affairs. President Coolidge and Mr. Hughes. That is quite perfect. But many Wholesale graft has characterized the Wall Street-State Department a beautiful theory is shipwrecked on the sharp shores of fact, and I control of Nicaragua. The operating expenses of the Nicaraguan rail­ must confess that I, for one, can not reconcile our recent behavior in road were increased from $30,000 to $300,000 per year, and road-bed Nicaragua with the golden rule of the gentle Nazarene, who laid down and rolling stock were allowed to deteriorate. Freight rates were raised the precept, "Do unto others as ye would have others do unto you." 60 per cent and passenger rates 100 per cent. Customs duties, both On the very day that President Coolidge told Latin-American dele­ import and export, were increased on an average of 100 per cent and gates that our only motive was their welfare, American bombing planes many new taxes imposed. were showering death and destruction over defenseless Nicaraguan vil­ Senor Jose Castellon, a Nicaraguan economist, estimates that the lages and American marines, in overwhelming force, were hunting down banker exploitation of Nicaragua has cost its people $33,000,000 in: the puny forces of General Sandino. For more than a year Nicaraguan the last 15 years-and it must be remembered that Nicaragua is hardly ports have been blocked by United States battleships a.nd many widely half the area of many of our Western States and has a population of scattered sections of Nicaragua have been invaded by United States only 600,000. Our bankers originally intervened in Nicaragua on the marines on battle bent. Officers of the Marine Corps recently gave plea they would fund the Nicaraguan debt and speedily discharge it if out a statement that more than 600 Nicaraguans had been slain by our allowed to collect the customs receipts. Under the rule of the bankers armed forces. Every few days the press contains brief accounts of the Nicaraguan debt has actually increased. Certain American banking fresh detachments of marines embarking, and giant bombing planes­ firms and concession holders' are making very fat profits in Nicaragua, following the route taken by Lindbergh in his "good-will flight "-take but conditions among native business men are intolerable and many ·off for Nicaragua on their errand of destruction. President Coolidge Nicaraguans have been compelled to leave their country to find work---. may talk about the golden rule and Mr. Hughes may wax eloquent over and possibly to escape the tyranny of our Wall Street-State Department· "international amity," b.ut for all practical purposes we are-and have Marine Corps rule. been for more than a year-waging war on no small scale against a The policy carried on by successive Secretaries of State in the past 17 substantial proportion of the people of Nicaragua. ;rears has litera.lly gutted the sovereignty of Nicaragua. The new 6522 CONGRESSIONAL RECORD-SENATE APRIL 16 Larned History says that the Knox-Castrilla treaty-which was twice Many business houses failed, the small native farmers were heavily rejected by the Senate of the United States, although its terms were mortgaged, and unemployment was general. President Martinez called substantially enforced and constitute the policy of Secretary Kellogg a conference of well-known men from all walks of life, and the consensus and President Coolidge at this moment, was to reduce Nicaragua to an of opinion was that the Nicaraguan Government should try to regain American protectorate. Every political, every economic phase of the control of the national bank and national railroad. life of its people is under the merciless heel of the State Department With the consent of the State Department, President Martinez paid and the Wall Street bankers. Every strategic post, fiscal and military, $1,750,000 for 51 per cent of the stock of the Nicaraguan National Rail· is in tlle hands of State Department appointees. Nicaragua is at this road and $300,000 for 51 per cent of the Nicaraguan National Bank. moment in the bitterest bondage in which any free people ever found The price for both utilities was virtually double what the Nicaraguan themselves. Government had received in 1913. Martinez retained three Americans Briefly, of course, I will relate the history of our intervention in on the board of directors of the bank and the railroad and replaced Nicaragua. the others by native Nicaraguans residing in the United States. The The beginning of Nicaragua's misfortunes dates from 1909 when J. G. White Management Corporation was allowed to continue to the State Department, then under Philander C. Knox, not only encour­ operate the railroad. It was impossible at that time to dissolve the aged but actually aided a revolutionary movement which overthrew American corporations and to transact all the bank and railroad busl· President Zelaya. Zelaya was speedily .suppressing the rev.olution until ness in Nicaragua, as the Nicaraguan Congress had not yet passed the United States marines were landed to prevent him from capturing Blue­ necessary legislation. fields. The State Depnrtment also withdrew its recognition. Zelaya The State Department frowned upon the candidacy of Martinez for left the country and Dr. Jo ~ Madriz, a distingui bed jurist who had reelection, although Diaz had succeeded himself, so a coalition of Con­ served on the Central American Court of Justice, was chosen as his servatives and Liberals nominated Solerzano for President and Doctor successor by the Nicaraguan Congress. Sacasa for Vice President. '£hey were pledged to carry out the pro­ General Estrada, who had started the revolt against Zelaya, con­ gram instituted by Martinez and completely nationalize the bank and tinued fighting against Madriz. United States marines remained in railroad. Emiliano Cbamorro, former President, represented the Wall Nicaragua, establishing " neutral zones," which handicapped the Nica­ Street group and frankly declared that if elected he would resell the raguan government troops, and on September 10, 1910, Estrada cap­ bank and railroad to the bankers. Therefore the election presented tured the capital, proclaimed himself provisional president and asked clear-cut issues and, as II. A. Dodd, American supervisor, reported it, official recognition from the United States. Before this was granted, " the fairest election held in Nicaragua for 15 years," it may fairly Thomas Dawson, minister at Panama, was sent to Nicaragua to take be presumed to have reflected the desires of the Nicaraguan people. charge of the situation. Dawson insisted, according to sworn testi­ Solerzano .and Sacasa received approximately 4;8,000 votes and Cba­ mony of Thomas P. Moffat, then American consul at Managua, that morro received approximately 28,000 votes. It was the first election Auolfa Diaz be named as vice president. Diaz was then a. clerk in the since l!J09 in which the people of Nicaragua had been allowed to La Luz & Los Angeles Mining Co. Estrada bad to agree to be recog­ express their opinion at the polls with the slightest assurance that nized. They then were "elected " president and vice president by a their votes would be counted honestly. hand-picked assembly and recognized by Pre ident Taft. United States marines had been continuously in Nicaragua ever since Estrada raised some objection to sanctioning the loans desired by 1909, in spite of protests by United States Congressmen and the the New York bankers. Two Nicaraguan assemblies had rejected the Nicaraguan people, but it was not until Solcrzano and Sacasa were contracts and public opinion overwhelmingly opposed the concessions. elected that the State Department served notice that the marines would A revolution headed by l\fena, an Indian g~neral, promptly broke out be withdrawn on January 1, 1925, the date the new regime was to take against Estrada, and according to sworn testimony Elliott C. North­ office. There is little doubt that the withdrawal of the marines was cott, All:l2t·ican minister at Nicaragua, told Estrada he would have to designed to throw a cloud of disfavor over the Solerzano-Sacasa leave the country and surrender the presidency. Estrada did leave and regime and, furthermore, under the circumstances, with every American thus Diaz succeeded to the presidency. He was promptly recognized official in Nicaragua actively campaigning for the return of the bank and when the whole country sprang to arms against him 3,000 Amer­ and the railroad, it could only be construed as an invitation for a revo­ ican marines were landed and put down the uprising with a heavy loss lution. In fact, so thoroughly were the Nicaraguans themselves con· of life. vinced of this that President Solerzano petitioned the State Depart­ Then, while Nicaragua was still under control of American marines, ment to keep the marines in Nicaragua. They were left seven months with the ·constitutional rights of free speech and free press suspended, .at his request, and then suddenly withdrawn in August, 1n25. with a majority of the electorate disfranchised by executive decree, Immediately after tbe inauguration of Solerzano and Sacasa the while marine officers in uniform openly campaigned for Diaz, a farcical New York bankers tried to force a new loan upon the Nicaraguan Gov­ " el<>Ction ,; was held to sanction the accomplished facts and Diaz was ernment, with the usual security of a mortgage upon the national bank declared the unanimous choice for president. -- and railroad. This failed. Offers were then made to buy the bank During the two-year period that witnessed the rapid changes chron­ outright. Great pressure was brought to bear upon President Soler· icle~ above, executive degrees were written or amended by the State zano. Predictions were made that if be did not sell the bank tho Department and United States diplomatic agents in Nicaragua issued Nicaraguan currency would depreciate and economic ruin follow. Prac­ instructions to Nicaraguan army officers, selected the candidates put tically all of the high-salaried Americans occupying the key positions forward at farcical elections, and vetoed articles in the proposed Nica­ in Nicaragua helped this propaganda. raguan constitution then being drawn by a constitutional assembly. Solerzano, though wavering at first, ·finally decided to cnrry out his Diaz remained in office from 1912 until 1916-protected by United campaign pledges. He definitely r efused to sell the bank and cabled States marines who constantly remained at Managua-and it was during his fiscal agent in New York to cancel the contract which the J. G. the r~gime of this $1,200-a-year clerk in Secretary of State Knox's White Corporation had to manage the railroad. This was on October corporation that the Nicaraguan National Bank and National Railroad 3, 1925, and there is good ground for believing that when President were surrendered to the New York bankers. Diaz and his followers Solerzano made this definite move to dispense with the services of the also looted the public treasw·y on an extensive scale, paying themselves J. G. White Management Corporation the financial group in New York several million dollars for alleged "revolutionary claims." realized at last the Govemment of Nicaragua was in the hands of Diaz was followed by Emiliano Cbamorro, who also was " elected Nicaraguans who meant to put an end to the exploitation of their unanimously" after B. L. Jefferson, American minister, called in all country, and this group of American financiers then and there decided opposing candidates and bluntly informed them that no one would be to pot an end to the Solerzano-Sacasa regime. recognized by the United States who would not pledge himself to the On October 23, General Chamorro, who was defeated for the Presi­ rule of the bankers. Unwilling to make such dishonorable pledges, the dency less than a year before by an overwhelming vote, seized the other candidates withdrew and Chamorro had the field to himself. fot·tress of Managua, the capital, imprisoned President Solerzano, and American marines remained in Nicaragua and marine officers testified finally forced him to resign under duress; chased Vice President before the Senate that at least three-quarters of the Niearagua.n people Sacasa out of the country ; jailed members of the supreme court and opposed Cbamorro. Col. Smedley Butler went so far as to state that llundreds of others; expelled members of Congress, and declared his Chamorro could not remain in the country 24 hours without the support own friends seated in their stead. of American marines. The State Department did not recognize Chamorro. lie was held to In 1920 Gen. Emiliano Chamorro was succeeded by his uncle, Diego have violated the five-power pact signed in Washington in 1923 by the M. Chamorro. This election, too, was vitiated by fraud. Cbamorro Central American Republics, which stipulated tba.t no President of any supporters controlled the polls and supervised the counting of the Central American Republic ~ho obtained power by a revolution or coup ballots. l\Ir. Miller, a "special ouserver." sent by the United States d'etat should be recognized by other Central American Republics. The State Department, fl'ankly admitted that " fraud undoubtedly did take United States did not sign the five-power pact, but President Coolidge place in the registration and counting of votes" and added that "a aumitted that this Government bad a moral obligation to apply its fair election could not have been held under the existing election laws." principles in order to encourage Central American States to prevent President Diego Chamorro died unexpectedly in 1923 and was suc­ revolution, and in his speech before Congress on January 10, 1927, the ceeded by Vice President Martinez. At this time, largely bec.ause its Prt:>sident said this was the reason why Chamorro was not recognized. resources were being drained by graft, extravagance, and systematic President Coolidge omitted to state that Adolfo Diaz, whom he exploitation, the economic situation in Nicaragua had become acute. promptly recognized when Chamorro stepped down, also had violated 1928 CONGRESSIONAL RECORD-SENATE 6523 the five-power pact, and we were under the same moral ·obligation not unless they laid down their arms the whole force of the marines would to recognize his wholly illegal usurpation. It is a notorious fact in be employed to disarm them. On the other hand, if the arms were Nicaragua that Diaz and Chamorro were confederates in the coup surrendered, the Liberals, I am informed, were promised that $10 would d'etat which overthrew Solerzano and Sacasa. The fact has never been be paid in gold for each rifle. denied or even questioned. The Nicaraguans reali?;ed, of course, that they could not cope with In a cablegram from San ·Jose, Costa Rica, December 23, 1926, by the the marines and accepted the offer. But Diaz had no money to pay for Associated Press and published in La Prensa, the Spanish daily in New the sunendered rilles, whereupon the State Department induced the York City, General Chamorro, who was passing through the city to Guaranty Trust Co. to lend $1,000,000 to the Diaz regime. The terms represent the Diaz government as special emissary to Europe, frankly of this loan required Nicaragua to mortgage the national bank-the rail­ ~dmitte d as much. The dispatch quotes him as follows: road already was back under the control of the Wall Street bankers­ "Adolfo Diaz aided me in the first coup against the constituted gov­ to pledge the entire receipts of the new- export tax on coffee and the ernment of President Solerzano, and it is surprising that he was recog­ new import duties on tobacco and liquor; to give the Guaranty Trust nized by the United States while they denied me such recognition." Co. a five-year option on all new loans; and to transfer the deposits 'J.'he rump Congress which " elected " Diaz, after notice had been and revenues of the national bank and railroad to the keeping of the served on Chamorro that be would not be recognized, was surrounded· New York bankers. Also provided for was the appointment of anotht'r by troops under Chamorro, who was commander in chief of the army. high-salaried American to act as "inspector general of internal revenue," No delegate not personally acceptable to Cbamono was allowed to and it was directed that the money loaned be distributed by an Ameri­ enter, and at least 18 were denied their seats. Chamorro continued can-controlled commission. to act as commander in chief of the .army three weeks after Diaz was This new loan will have expired by the time this article sees print, "elected," and then left as special emissary to Europe. but it is perfectly safe to predict that the Diaz regime will default on President Coolidge and our State Department trampled underfoot our payment of both debts, in which event the Nicaraguan National Bank national honor when they recognized Adolfo Diaz as President of and the Nicaraguan National Railroad will again be completely under Nicaragua. To do this they had to violate the letter and spirit of a the control of Wall Street bankers and the greater portion of the rev­ • treaty which our Government sponsored. They had to ovNride the enue from Nicaragua's only two profit-paying public utilities will be letter and spirit of the Nicaraguan constitution which we also spon­ diverted to the enrichment of private investors in the United States. sored. They had to lend themselves to all manner of legal trickery and It is only necessary to add that the chief of the Latin-American divi­ political chicanery in the vain hope of making the worse appear the sion of our State Department at the time the Solerzano-Sacasa govern­ bettet· in the eyes of the people of · Nicaragua, who justly despise this ment was overthrown by Chamorro and Diaz was a former employee of pet puppet of our State Department. And when the Nicaraguan people the very Well Street bankers who controlled the Nicaraguan National refused to accept this tool, Diaz, who already bad exploited them for Bank and Railroad. This gentleman has since resigned from the State six years backed by the might of the American marines, President Department and found reemployment with his banker friends. Coolidge and Secretary Kellogg began rushing warships, marines, and At the present writing American bombing planes are terrorizing the bombing planes to the little country to force their brutal policy. tiny villages of the Nicaraguan natives and American marines in over­ The State Department has been using Diaz otr and on ever since it whelming force are relentlessly engaged in hunting down the gallant assisted in fomenting the 1909 revolution which deposed Zelaya. He remnant of Nicaraguan Liberals who are still fighting under the leader­ is one of its two handy men. The other is Emiliano Chamorro. Diaz ship of General Sandino. Our press commonly refers to Sandino and has finally won out because be is the more pliant tool. Neither Diaz his men as bnndits, but I, for one, can not help thinking that they arc nor Chamorro bas any sense of public honor. They regard treason actuated by exactly the same principles of liberty and free government as ea perfectly legitimate get-rich-quick game. They see no reason for which our forefathers fought in 1776. Indeed, it is not too much whatever why, if by use of force and foreign money, they get into to state that one ·would seek in vain in the history of our struggle tor· position to sell out their countt·y they should not do so. It wpuld be independence for a parallel to the brazen tyranny of the State Depart­ unfair to Judas Iscariof or Benedict Arnold to compare these men with ment in its dealings with the people of Nicaragua. George III never them. For neither Judas nor Benedict was a glutton for treason. They dared to perpetrate upon the American Colonies such fiscal and political only played the rOle of traitor once and one of the two, at least, quickly iniquities-to say nothing of ruthless force-as our State Department repented of his act. Neither was a "hard-boiled" traitor. has not hesitated to inflict upon the defenseless people of Nicamgua. There is no secret about the character of these two men. It is com­ mon knowledge throughout Central and South America. The truth as The chief responsibility for this crime against liberty and republi­ canism and good morals must rest upon the executive department of our to the total lack of character of either Diaz or. Cbamorro bas been Government, into whose bands in an especial sense the good repute of blazoned abroad. It is impossible, without reflecting upon the intel­ ligence of President Coolidge and Secretary Kellogg, to suppose that o&r country is committed. But no American citizen now living who either of them labors under any delusion as to the moral unfitness knows the facts and remains silent while this gross injustice is being done can escape some measure of the responsibility. It seems to me o:f Diaz for the office into which be was thrust and in which the armed support alone of the United States keeps him. Yet President Coolidge that President Coolidge and Secretary Kellogg have been recreant to told the delegates to the Pan American Conference that in its relations the fundamental principles of free government to which this Nation was dedicated at its birth. with Latin-American Republics the United States is actuated only by the principles of the Golden Rule. Possibly ·he meant the golden rule I dare to hope that the. conscience of America will be. fully aroused of the Wall Street bankers. In that event his words were literally before it is too late to repair the wrong we are doing. Once the na­ true. tional conscience is aroused-the same divine power that brought to Three days after Diaz was chosen by the rump congress under the ground the slave oligarchy when it seemed most firmly entrenched­ Cbamorro's control he was recognized by the United States and five the doom of dollar diplomacy such as has disgraced us in Nicaragua days later Robert F. Loree, president of the Guaranty Trust Co. of will be sealed. From that moment we will again begin to cherish New York-also president of the National Bank of Nicaragua-loaned a decent respect for the opinion of mankind. We will by our own Diaz $300,000, the entire capital stock of the Nicaraguan National Bank, initiative move away from this policy of aggrandizement in Latin and as security Diaz pledged 51 per cent o the stock of the Nicaraguan America and return to the true traditions of Americanism as voiced by Railroad. The terms of the loan provided that unless repaid within Washington, Jetrerson, Monroe, and Lincoln. 15 months the collateral was to be sold at public auction in New York I venture to look in another direction for help against the moral City, where the · stock of the railroad has no quoted value on any aberration of dollar diplomacy. This is to the hard common sense exchange. of legitimate American business men. I say legitimate business men United States marines, who had been suddenly withdrawn two months because there is a world of difference betw<>en the legitimate business before Cbamorro's coup d'etat, did not interfere while the legally elected which goes into the markets of the world with clean hands, asking no president of Nicaragua was imprisoned and the legally elected vice governmental favors but only a fair field, and the wholly illegitimate president compelled to flee the country. But soon after Diaz was business that looks to our State Department for unfair concessions and illegally named president by the rump congress our marines were then asks for battleships and marines to protect its ill-gotten gains. rushed bnck to Nicaragua and, by declaring "neutral zones " whenever I tl"llst the common sense of legitimate Amet·ican business men will the liberals had won or were about to win a victory, prevented the realize before it is too late the utter folly of our present policy to­ Sacasa forces from quickly driving out the usurper. An embargo was ward Latin America. Our trade with Europe is percentually on the placed upon shipments of arms intended for the liberals, although Diaz decline and Central and South America offer by far the most inviting actually was advanced credits by the United States Government for the fields for future disposal of our surplus products of farm and factory. purpose of buying munitions; medical supplies intended for wounded We can not make the most of this market if a little clique of interna­ Liberal soldiers were held up, and large quantities of munitions were tional bankers, seeking extortionate profits, poison the peoples of South taken from the Liberals and destroyed. Despite these handicaps the America against us by persuading the State Department to act as it Liberals continued to make headway. bas acted in Nicaragua. The Coolidge-Kellogg policy already has raised 'l'hen, after Congress adjourned last March, President Coolidge sent a storm of denunciation throughout Latin America, and if persisted Henry L. Stimson to Nicaragua as his "personal representative." Stim­ in will do much to sweep away the friendly foundations of trade which son called the Liberal leaders into conference and informed them that were painstakingly laid by legitimate American business men. L.X.IX--411 /

6524 OONGRESSION AL RECORD-SENATE .APRIL 16 Even if I should be disappointed in my hope that the American con- that right now, because, in my judgment, we can not afford td science will be aroused from its lethargy in time to save the day for resolve om·selves into a suspecting body for the purpose of American honor, an~ even if the hard common sense of American busi- doing that which we really are not called upon to do. ness men engaged in legitimate commerce does not assert itself to halt Mr. SWANSON. Mr. President, will the Senator yield to me a policy so harmful to our trade with Latin America, I am still posi- a minute to make a suggestion? - tive that the end of dollar diplomacy is near. Mr. BLAINE. Just a moment, and then I will yield to the At this age, when the voice of nationalism is being lifted higher and Senator. I want to _suggest to the Senator from Wyoming that higher throughout the world than ever before, it is foolish to suppose there are not any thousands of men depending for their living that we can impose upon the allied nations of South and Central or sustenance upon whether this bill goe over a day or two, or, America a colonial system of peon states. Logically, our present policy for that matter, a month. They have been provided for in a : leads straight in that direction, but it is a path that ends at the brink former bilL This bill has reference to the fiscal year beginning of a precipice. Let us not, unless we want to forfeit our own self- July 1, 1928. There will be no suffering; nobody will suffer if , respect, and the friendship of the whole world, substitute 1or the motto this bill goes over for a short time. that "Righteousness exaiteth a nation" any maxim of junkerism that 1\lr IDE!ans "T~e world be damned." · ·. WARREN. When the Senator speaks of the bill going over I suppose he means to have it go over for this session. This world does no\_ intend to be damned by any imperial individual Mr. BLAINE. Oh, no. of any imperial nation. That kind of junkerism, however, camouflaged Mr. wARREN. If the Senator has that purpose he should by hypocritical pretenses to suit the times, will not win us either honor announce it, of course. or permanent prosperity. It will only serve to bring us to dishonor, Mr. BLAINE. My motion was to postpone the consideration and, in the end, when we have been morally isolated, to certain merited of the bill-- destruction. History is strewn with the wreckage of great empires Mr. WARREN. From day to day, until the Senator receives • which sought to subjugate smaller states. Imperialism inevitably some information that he asks for and perhaps is not satisfied leads to ruin. After all, the universe in which we live is a moral uni- with when it is presented. verse. In the end, right and not might, justice and not injustice, and Mr. BLAINE. The Senator is anticipating what my satis- truth instead of lies, prevail. faction may or may not be. . Mr. BLAINE. Mr. President, I move that action upon the Mr. SWANSON. Mr. President, if the Senator will permit pending bill be deferred until we are supplied with the informa- me-- tion called for in the resolution that I submitted some time ago. Mr. BLAiNE. My information, when I obtain it, may· be In order to bring that motion within the rules, I move that very satisfactory. If there is any delay in presenting that action on this bill be postponed until to-morrow after the close information to the Senate, it will not be at this end of the of the morning business; and I also give notice that if that Government. It will be at the executive end of the Govern­ motion prevails I shall make the same motion from day to day ment. until we can have a proper consideration of the resolution Mr. SWANSON. Mr. President-- \vhich I submitted this morning. Mr. WARREN. What is the matter with the information Mr. HALE. Mr. President, I will ask the Senator if he is the Senator received this morning? not satisfied with the information I have just given the Senate. Mr. BLAINE. Mr. President, as I could examine it from I think it covers every point embodied in his resolution. the statement made by the Senator from Maine, I am very Mr. BLAINE. I listened attentively to the information that frank to state that I was unable to make an intelligent com­ the Senator divulged this morning. I do not believe that it is in parison. This que tion of budget making and making of st!te­ sUfficient detail, nor do I believe that it gives the information ments for an appropriation is not entirely unfamiliar to me. I we are seeking. want to say, Mr. President, that there ~ no difficulty, if the Mr. HALE. How could it be in more detail? It is in the desire is there, to present most any showing that those who are same detail that is given to the Budget officer by the Navy interested desire to present. I do not mean that the chairman Department. of the committee had any untoward desires, but I want to say Mr. BLAINE. I find no way by which we can make a com- that to pass an appropriation bill involving additional increases parison between the cost of maintaining this belligerent arm of of money in the twinkling of an eye, without the opportunity the Navy and the cost of maintaining the Navy under peace to investigate and to analyze the proposals, is not fair to the conditions. taxpayers of America. Mr. HALE. I have just shown the difference between the Mr. SWANSON. Mr. President, will the Senator yield? cost of maintaining the Marine Corps as we have been doing it Mr. BLAINE. I yield. without the foreign service and the cost with the foreign service. Mr. SWANSON. I am going to make a suggestion. The Sen- Mr. BLAINE. I am not convinced that all the items of cost ator desires certain information, and he is entitled to have it; are included in the figures presented by the chairman of the I fully realize that. His resolution will give it to him. I Committee on Naval Affairs. hope the r esolution will pass with the last resolve left out, Mr. HALE. The information was very clear. I do not object which provides that thi bill shall not be disposed of until to the Senator getting any information he wants, so long as it the information is furnished. I suggest to the Senator that he does not delay the passage of the bill, which, rather than being leave that out of his resolution, and I dnre say that t~morrow, delayed, should be expedited. or the day after to-morrow, the information can be furnished. Mr. BLAINE. Moreover, there ought to be an opportunity to Then we can proceed with the bill. study this question. I want to say to the Senator from Maine There is no chance to pa s this bill, under the rules of the that I have no disposition to delay action upon this appropria- Senate, if the Senator objects, and if the information does not tion eill, but I think there is something more important than come promptly the Senator will have the power to speak and that involved. I think the whole destiny of our Nation de- delay the pas age of the bill. But in the manner in which he pends upon whethet: the policy of using force in peace times phrases the resolution Senators will have to consent that against friendly nations adopted by this administration is going information that is satisfactory to the Senator from Wisconsin to be the policy of America for all time to come. must be furnished before they will vote on the· bill. I would 1\Ir. WARREN. Mr. President, will the Senator yield to me? not be willing to be put in that attitude. It seems to me Mr. BLAINE. I yield to the Senator from Wyoming. that the thing that is right and proper is to pass the Senator's 1\Ir. WARREN. I observe the Senator's anxiety for infor- resolution asking for the information. But I have never known mation, and his anxiety in some way to conclude these matters a Senator to ask for information and couple with the request a in Nicaragua; but I suggest to him that it would appear provision as to when we may consider and dispose of a bill. absurd, when under the law we are providing in the usual way This bill can not be disposed of, can not be voted on, until the necessary appropriations for annual su~plies, for instance, the Senator's consent is obtained, under the rules of the Senate. for the service of these men, their food and clothing, and the Why does he not have his resolution passed unanimously to-day whole system of appropriation, that that shall be delayed from and sent to t.he department this evening, and I have no doubt time to time to decide a question, as the Senator says, of policy. 1 that in a day or two the information will be furnished him? Surely the appropriation bills are in no wise expected to 1\Ir. HALE. I have just given the Senator the information express a policy, other than to fulfill our duties under the law. he has asked for. If the Senator wishes more information, I think he should Mr. SWANSON. He is entitled to the information, irrespec- get it through direct legislation, without undertaking indirectly tive of the chairman of a committee. · I am not willing to to discommode thousands of men who are working for the say that this is the beginning and the end.. of information. I Government under an agreement by which they are to be pro- am for the passage of this resolution if the Senator will leave vided with certain commodities. Of course, if the Senator out that part which states that the bill is to be delayed until wants to have the bill passed over for a day, I assume he the information is furnished. Let the Senate determine whether might get that permission without any difficulty ; but if he desires it will delay it or not. It seems to me the right and just thing to put it over from day to · day I should enter an objection to to do is to pass the Senator's resolution asking for this informa- 1928 CONGRESSIONAL RECORD-SENATE 6525 tion, to which he is entitled. At 3 o'clock we are to have Mr. BORAH. Yes; they can give what they believe to be a exercises under a s})€cial order, and this bill can not be dis­ correct estimate. posed of until the Senator consents to it, under the rules of 1\Ir. NORRIS. That is as far as we can go. the Senate. It seems to me the right thing to do is for- the Mr. EDGE. That is all they can do under- any circumstances. Senator to leave out that part of his resolution and to get the 1\lr. SWANSON. If the Senator will permit, General Lejeune, information. the Secretary of the Navy, and Admiral Latimer, all were fully I hope the Senator will consent to that. I trust the resolution quizzed in an investigation made in regard to this matter by will pass with that left out. the Committee on Foreign Relations, a report of which has been Mr. BLAINE. I appreciate what the Senator from Virginia printed. If the Senator wants it up to date and in a compact has ~aid. My only purpo e in placing the last provision in the form, it can be furni hed, I think, as the chairman of the resolution was to have an assurance that we would have the Committee on Foreign Relations has said, very quickly, and I inf01mation before we acted upon the bill. That was the only have no objection. purpose. If it is the request of the Senator that that clause Mr. NORRIS. I have read the report to which the Senator be stricken out, and that the resolution pass without it, I refers. Some of the information I think is very unsatisfactory, accept his amendment. very indefinite. I have so far not heard-and they ought to be Mr. EDGE. Mr. President, reserving the right to object, I able to tell this-how many homes have been de ·troyed and would like to have the resolution stated with that clause purned. It is reported that a great many have been. I would eliminated. oe glad to find out that there were none. What I want to The VICE PRESIDENT. The clerk will read the resolution know, and what I think the Senate ought to know, is the plain, with the clause referred to eliminated. unvarnished truth, and nothing else. The legislative cl~rk ·read the resolution ( S. Res. 198) as Mr. BORAH. 1\Ir. President, I think the Senator's request is modified, as follows : a reasonable one and one which can be complied with very Res~ved, That the Secretary of the Navy is directed to communi­ readily; that is to say, in so far as they have any information cate to the Senate a detailed account of the expenditures incurred in at all they can furnish it very readily, and I am satisfied that the support and navigation of the sev~ral ships, war vessels, and they will be able to do so within 48 hours. transports, and aircraft or other implements of war, and the personnel l\Ir. NORRIS. I ask that the resolution be amended. I thereof, including officers and men, and all costs, in connection with think the Senator from Wisconsin would have no objection to the expedition to the Republic of Nicaragua, from the 4th day of the amendment I have suggested being added. ' May, 1927, and an account of the expenditures incidental thereto or Mr. BLAINE. I have no objection. necessary by reason of such expedition ; and that the Secretary of the l\1r. HALE. I have no objection, Mr. President, to the adop­ Navy also report in detail to the Senate how much the expenditures tion of the resolution as amended. would have been had such ships, war vessels, transports, and aircraft The VICE PRESIDENT. The question is on agreeing to the or other implements of war, and the personnel thereof, including offi­ resolution as modified. cers and men, been in service at the respective home stations or The resolution as modified was agreed to, as follows: camps ; also how many vessels of every description are in service in Resolved, That the Secretary of the Navy is directed to communicate connection with the present conditions relating to the Republic of to the Senate a detailed account of the expenditures incurred in the Nicaragua. support and navigation of the several ships, war vessels, and transports, Mr. BORAH. Mr. President, as I understand the design of and aircraft or other implements of war, and the personnel thereof, this resolution is to secure information relative to the extra including officers and men, and all costs, in connection with the expe­ cost of what we have been doing in Nicaragua. dition to the Republic of Nicaragua from the 4th day of May, 1927, and Mr. BLAINE. In effect; yes. The first paragraph of the an account of the expenditures incidental thereto or necessary by reason resolution is intended to get a detailed statement of the entire of such expedition; and that the Secretary of the Navy also report cost of all those operations, and a detailed statement of the in detail to the Senate how much the expenditures would have been cost of the marines at the home stations is asked. Then it had such ships, war vessels, transports, and aircmft, or other imple­ becomes a mathematical question for each one to determine as ments of war, and the personnel thereof, including officers and men, to how much this expedition is costing. been in service at the respective home stations or camps; also how Mr. SWANSON. As I understand, the purpose of this is to many vessels of every description are in service in connection with ascertain the extra cost to the Government on account of the the present conditions relating to the Republic of Nicaragua, the intervention, or interference, whatever you call it, in Nicaragua. number of American soldiers killed or wounded, the number of Nica­ Mr. BLAINE. If the Secretary of the Navy complies with raguans J,.·iUed or wounded, the number of women and children in the resolution, should it be adopted, that will be the result. Nicaragua killed or wounded, and the number of Nicaraguan homes 1\Ir. SWANSON. That is all that is desired, and I urge that destroyed or burned. that pass. I think that the Senator is entitled to it. Mr. EDGE. Mr. President, if I may have the Senator's atten­ Mr. BINGIIAl\1. Is that all that is desired? The Senator tion further, I think the information from the 1st of .January from Wisconsin has not answered that question yet. up to date, or as nearly up to date as possible, is undoubtedly 1\Ir. BORAH. He said yes. in order. In looking over the report from the Navy Department Mr. NORRIS. Mr. President, I want to suggest an amend­ I notice that it contains a list of the casualties to noncombatants ment to the resolution. I suggested it this morning, and I have in Nicaragua and a list of casualties to combatants, and also been preparing it. I want to suggest that in addition to what where any planes have visited towns, or any bombs have been the Secretary is asked to report, he be asked also to report the exploded. So I suplX)se we will get the information asked for. number of American soldiers killed and wounded, the number Mr. SHIPSTEAD. Mr. President, as long as the Senator is of Nicaraguans killed and wounded, the number of women and after information, I would suggest that he ask for some more children in Nicaragua killed and wounded, and the number of information. We went into Nicaragua, we were told, to pro­ Nicaraguan homes destJ.•oyed or burned. tect the interests of the United States against the Govetnment Mr. HALE. Mr. President, I made a similar request to the of Mexico and the Government of Russia. We were told that department, and they tell me that 21 marines have been killed the leaders of the revolutionists were being used as tools by the since the expedition first went to Nicaragua, and 44 have been Soviet Government of Russia and the Government of Mexico. wounded. It is impossible to give the number of native Nica­ It now transpires that there has been a change of sentiment raguans who have killed. The department has not that infor­ on the part of these people. They are our friends now. They mation. have evidently left the service of the Government of Mexico and Mr. NORRIS. They can tell the number of towns they have the Government of Russia and are our friends now. Now we destroyed, and the number of homes that have been burned. I are' there to protect the men we went down to protect ourselves should think they could give .an idea as to the number of Nica­ against. \Ve did not go in, in the first place, to carry on an elec­ raguans killed. tion. That became an incident after we had disposed of the Mr. HALE. The Senator would not want to hold up. the Government of Russia and the Government of Mexico. pas age of the naval appropriation bill to get that information? It would be interesting to know what was done to alienate l\fr. NORRIS. No. They can give it to us in 15 minutes. these people who are our friends now, -and to get whom into office 1\Ir. BORAH. As far as the information the Senator is call­ we maintain armed forces. It would be interesting to know ing for is concerned, they can furnish that in a very short time, what .was done to alienate them from the service of the Govern­ b~au.·e they have data. It bas already been given to the Com­ ment of Mexico and the Government of Russia, as they were a mittee on Foreign Relations, and it will not take any length of year ago when we went in there, we were told, and as was given time at all to get it. as the main purpose for our going in there. As the Senator is 1\lr. HALE. Can they give information about the number of after information, he might also ask fo1· some information on Nicaraguans killed? that point. 6526 CONGRESSIONAL RECORD-SENATE APRIL 16 Mr. SWANSON. 1\Ir. President, I think -the information The Chief Clerk read as follows: is asked by the Senator from Wisconsin right ·and proper, and TENNESSEE EXECUTIVE CHA.MBER, his resolution ought to have been passed, as amended by the NMlwme, APt"iZ 11, 19f8. Senator from Nebraska. I am not going to consent to have To the Senate a114 Home of Representatives, WMhington, D. 0. information furnished bringing Mexico into this matter. We GENTLEMEN: Pursuant to the action of the sixty-fourth session of have peaceful relations with l\Iexico, and I do not think they the Legislature of Tennessee there has been erected in Statuary HalJ, ought to be disturbed. I see no occasion for seeking informa­ Capitol of the United States, a statue of , a citizen tion to get the 1\Iexican controversy renewed, or revived, and of Tennessee and seventh President of the United States of America. made another disturbing factor. I am satisfied that the Sena­ In behalf of the people of the State of Tennessee it is my pleasure tor from Minnesota, who is usually of a peaceful, splendid turn and great privilege to present to the Government representing the of mind and a patriotic man, does not wish to have the old people of the United States of America this -statue of Tennessee's 1\fexican matter thrashed over again. Consequently, I would famous son and one of Ame:ica's greatest generals and Presidents. ·object. It would be superfluous for · me to enumerate to your patriotic body Mr. BORAH. I understood that the Senator from Minnesota of learned statesmen, familiar as you are with the history-making was simply humorous. epoch made glorious with the name and fame of Andrew Jackson and 1\Ir. SWANSON. If he was humorous, I can not tell when he of his life and achievements involving his record as a Congressman is serious and when he is humorous. He is very able both way~. and Senator of the United States, major general of the United States He knows how to disguise his purpose so that even a shrewd Army, and President of the United States, and the far-reaching . man can not perceive it. influence of his life and of his deeds in American history. STATUE OF ANDREW JACKSON It is sufficient only for me to say that the State of Tennessee, realiz­ ing this, and feeling that a statue should be placed among America's The VICE PRESIDENT. The hour of 3 o'clock having immortals in her hall of fame, has had this statue erected, and arrived, the cle1·k will read Senate Resolution 192. hereby presen-ts it to the great Government he did so much to create The Chief Clerk read the resolution (S. Res. 192), adopted and preserve, and respectfully asks your acceptance of same. b~_. the Senate on the 9th instant, as follows: Yours very truly, Resolved, That at 3 o'clock on April 16, 1928, exercises appropriate HENRY H. HORTON, Governor. to the reception and acceptance from the State of Tennessee of the Mr. TYSON. 1\Ir. President, we have had many great men statue of Andrew Jackson, a former President of the United States, in our country, and the names of many of them to-day are erected in Statuary Hall in the Capitol, be made the special order of oftener upon the lips of our countrymen than is the name the Senate. of Andrew Jackson, but, Mr. President, I believe there is no 1\Ir. CURTIS. Mr. President, I suggest the absence of a man whom our country has produced who deserves more fl·om quorum. his country than Andrew Jackson. The VICE PRESIDENT. The clerk will call the roll. There never was a greater or more unselfish patriot, nor one The Chief Clerk called the roll, and the following Senators who gave at all times more unsparingly or more effectively for answered to their names : · his country. He was born in 1767 of poor parents who had come to Amer· Ashurst J~i~~~~r ~~~~~er ~~~~~Id:e ica from Ireland in 1765 for the purpose of escaping the oppres· ~fJ'@~m George McNary Simmons sions of the British. Shortly after settling in America the Black Gerry Mayfield Smith father died, and later the whole family was to suffer even a Blaine 8~~s ~~~~ ~~1~~r more dire calamity in this far-off America at the hands of ~~~~~ · Gould Neely Stephens the British than they could possibly have experienced had ~~~~~art ~!!;.is ~orb~ck ~~;i:tS:Sn they remained in Ireland. Before the Revolutionary War was ~~~~sard ~~~!~on ~H::s :g~gs ~~~r ~~o ~~f~:r~aO: ~~re~ !a~e~!~f 0~ilJ~de b~a~e f~~::~ Capper Hayden Overman Vandenberg fought for more than a year in the Revolutionary Army, having ~~!~~ ro~~~on ~~~ps ;:f~~rMass. joined that Army at the tender age of 13 years. He was in Couzens Jones Pittman Walsh, Mont. several battles, and was thus one of the youngest soldiers wbo 2~~g f~~~~ck !~1~. Ind. ;t!~~:an ev~ew;~! 1~f~~ orphan at 14 years of age and had no blood BMe ~~ollette Sackett kin in America, and with practically no resources and but Edge Locher Schall little education he was compelled to make his way at these Fess McKellar Sheppard tender years by his own unaided efforts. Mr. JONES. I was requested to announce that the Senator To such distinction did he finally rise that the place of his .from Idaho [Mr. GooDING] is detained in committee. ' birth has been the subject of heated controversy and long The VICE PRESIDENT. · Eighty-one Senators having an- discussions, and many chapters of history have been written swered to their names, a quorum is present. The senior Sena- to show the exact spot where he was born. Having been born tor from Tennessee will take the chair. at or near the Waxhaws, on the North Carolina and South Mr. McKELLAR thereupon took the chair as Presiding Officer. Carolina line, both of these States claim him. Mr. TYSON. Mr. President, I send to the desk House Con- But it matters not so much where he was born nor where he current Resolution 29 and ask that it be read. lived for the first few years of his life, but it was where he The PRESIDING OFFICER (Mr. 1\IcKELLAR in the chair). lived and made his home and where he became great that Th\t clerk will read the concurrent resolution, as requested. mostly interests us. The Chief Clerk read the resolution (H. Con. Res. 29), It was in that romantic country known as Tennessee, across adopted by the House of Representatives on the 10th instant, as the Allegheny 1\Iountains, in the great valley of the 1\Iis issippi follows: · River-that marvelous land in that unparalleled bluegrass Resolved by the House of Representatives (the Senate concun'ino), region and unsurpassed hunting ground of the Shawnees, the That the statue of Andrew Jackson by Mrs. Belle Kinney Scholz, pre­ the Creeks, the Choctaws, and the Chickasaw In­ sented by the State of Tennessee, to be placed in Statuary Ilall, is ac­ dians-th~t he made his home, and there he lived and died. cepted in the name of the United States, and that the thanks of Con­ This new and undeveloped COJintry gave him the arena and. gress be tendered the State for the contri.bution of the statue of one of the greatest opportunity to be found anywhere on the continent its most eminent citizens, illustrious for his distinguished services to of America to display his peculiar and remarkable talents. It the country in war and in peace. was to the beautiful valleys of Tennessee and the Cumberland that this mighty man of destiny wended his way at the age of Second. That a copy of these resolutions, suitably engrossed and duly 20 to write his name imPerishably upon the pages of history, authenticated, be transmitted to the . His talents- and his courage were such that he was soon Mr. TYSON. Mr. President, I move the adoption of the con­ known in this new land as the great pionee1;, and the settlers current resolution. looked to him as their leader and their protector. The concurrent resolution was considered by unanimous con­ When the State of Tennessee was formed in 1796 Jackson sent and unanimously agreed to. was elected its first Representative .in the Congress of the Mr. TYSON. Mr. President, I send to the desk a communica­ United States. One year later he was appointed a Senator from tion from the Governor of Tennessee, addressed to the Senate Tennessee. and House of Representatives, and ask that it be read. The duties of a Congressman and a Senator were irksome to The PRESIDING OFFICER. The clerk will read, as re­ his adventurous and impetuous soul. He longed for the out­ quested. door life and the great, free, !Omantic land of Tennessee, 1928 CONGRESSIONAL RECOR.D-SENATE 6527. which answered the call of the wild ~nd the adventurous in On the morning of January 1 Pakenham opened a terrific his nature, and so l;le resigned his seat m the Senate after two fire and cannonade upon Jackson's position, but the British years' service and returned to Tennessee. were repulsed with heavy loss. He was one of the few men who ever resigned from the January 8, the fateful day for the British and for the glory Senate of the United States of his own accord. He was one of of America and of Jackson. opened with a heavy fog. The the few men who ever r esigned from the Supreme Court of British attacked with General Pakenham leading his troops Tennessee, where be bad -done a great service in bringing law as if on parade. and order to the new and turbulent State from 1799 to 1803. His troops stationed on the canal, Jackson walked inces­ During his service as a Representative in Congress he showed santly up and down behind his lines encouraging his troops himself to belon" to the school of , of whom and directing them to hold their fire until the British came so )le was a devoted follower and such was his courage and his close that the men could see the whites of their eyes. The idea of democracy and duty to the people that, notwithstanding battle raged for 25 minutes. The sharpshooters . of Jackson his love and admiration for Washington1 he ~efused to v~te for from Tennessee and Kentucky did terrible execution. The the congratulatory address on the retirement ~f Washmgton slaughter was appalling. During this short period of 25 from the Presidency in 1797 because he thougl!t 1t smacked too minutes 700 British soldiers fell dead, 1,500 were wounded, much of royalty. and 500 were taken prisoners. Jackson covered himself with imperishable renown and glory Pakenham was killed, followed by General Gibbs, who was as the commander of the Tennessee VQlunteers and militia in next in command ; then General Keane fell, being severely, the Creek war of 1813 and 1814. _ but not fatally, wounded. When the smoke cleared away the This was one of the most important and bloody wa~s ever Americans found that they had lost but 7 men killed and 13 waged against the Indians on this continent. Jackson com­ wounded. manded more than 3 000 troops in this war, and his troops suf­ The British retreated in disorder and left the field of battle, fered incredible hardships, but in six months this formidable and shortly thereafter left the country ; and thus was won tribe of Indians, who were aided and encouraged b~ !he eternal glory for America and the Presidency of the United British and the Spanj.sh in Florida, were brought to subm1~10n States and immortality for Andrew Jackson. and their power was foreve! broken. . . The people of our country for more than a hundred years To the eternal credit and glory of Tennessee be It said she by common consent each year on the anniversary of this battle agreed to stand sponsor for the payment of this large force have assembled together &nd celebrated the most remarkable which was used in driving the dreaded savage from the confines victory ever gained on a battle field in recorded history-the of the present States of Alabama and Mississippi. . . . -and to honor the most extraordinary In this war Jackson bad gained such renown by hiS mdomi­ man that ever appeared on the horizon of this Republic-Gen. table perseverance, courage, determination, iro~ will, and forti­ Andrew Jackson. tude in enduring hardships that he .was acclaimed thToughout Up to the time of the Battle of New Orleans the the Nation for his great achievements. He was made a major was a great humiliation and disappointment to the American general in the Regular Army of the United Sta~s, and after people, as they had won no ba.ttle of importance on land dur­ having taken Pensacola, then held by the Spamards, h,e was ing the war, and even the Capitol at Washington had been ordered to the defense of New Orleans. taken by British troops and burned. New Orleans at that time was the only city of importance in The whole Natiorr rejoiced over this remarkable battle as the Mississippi Valley and was threatened with a great attack being the most glorious victory that had ever been gained by by the British. It was the key. to the navigation of the 1\Ii~sis­ American arms and was balm to their wounds and pride. sippi River, and under no crrcumstances could the Umted Andrew Jackson's career as President was a stormy one, as States afford to lose this important point. his whole life had been. To give you an idea of the importance which the ~ritish He was President during one of the most critical and excit­ attached to it, it is only necessary to say that while the ing times in the history of the Republic. British in all their operations against America in' the War of Elected as a Democr~t, he had pitted against him during his 1812 bad never employed all together more than 20,000 men, yet whole presidential career that great triumvirate that has gone in this case an expedition had been planned to sail from the down in the annals of our country as three of the greatest island of Jamaica consisting of 50 vessels carrying 12,000 men who ever sat in the Senate of the United States-Olay, veteran troops of Wellington and 1,000 cannon under Sir Edward Calhoun, and Webster. Day after day and year after year Pakenham, a veteran of the Peninsul~ War in Spain and the battle between these three giants in the Senate arena and Portugal, who bad fought under W ellmgton and w~o had President Jackson in the Executive Mansion was waged with conquered and driven from Spain the veteran s~ldiers of unremitting vigor, fury, and bitterness. Napoleon. In addition there were nearly 10,000 sailors who Jackson asked no quarter and gave none, and although these were also to be thrown into that battle. men have never been surpassed in oratory and statesmanship Jackson arrived at New Orleans on December 1 and such and political sagacity by any men who have lived in our was the vigor of his measures that in a few days the courage country and although Jackson was called the backwoods Presi­ and confidence of the citizens were restored. dent by many, he finally triumphed over them in every political His force consisted of some 800 regulars and other troops battle in which they were engaged. composed of volunteers and militia from Tennessee and Ken­ tucky and Louisiana, amounting altogether to about 6,000 men, We can not speak of Jackson except in superlatives. He most of them equipped only with rifles and muskets and shot­ never did things as other men did them. He was successful guns which they were in the habit of using at home, and many in every serious undertaking of his life. It is said he fought a of them with no arms at all. In fact, it was as heterogeneous hundred battles, personal and otherwise, but even in his fights and undisciplined a lot of soldiers as ever went to battle. and duels he always came off a victor. He never was subor­ Jackson had announced that he would attack the foe at all dinate to any man. He never served an apprenticeship. He costs as soon as they landed on American soil. He swore "By seems to have been born to command. A lawyer, planter, the Eternal" that the foe should not b_e allowed to remain United States district attorney, Congressman, twice United on the sacred soil of his country. States Senator, justice of the supreme court of his State, never The British thought the Americans would not dare attack. an officer until he was made a major general of militia; never Little did they know the commander who was pitted against a leader in battle until he led an army ; never in the Regular them. Army until made a major general ; the Governor of Florida ; About 12 o'clock in the dead of night on the 23d of De­ the victor and hero of New Orleans; the victor in the Seminole cember Jackson launched a terrific attack upon the British, War; and twice the President of the United States, and dictato~ which took them wholly by surprise. A great victory was of two of his successors. gained and a still greater m·oral advantage. The British lost Absolute master of every situation and the controller of the 46 killed, 167 wounded, and 64 prisoners. The American loss destinies of the Republic for 20 years, so much so that the was about half that number. period from 1825 to 1845 is called the Jacksonian era of the Jackson had determined to mal~e his stand behind a small Republic. canal called the Rodriguez Canal, and he put every available Not a great student, but the greatest letter writer of his hand to work deepening and widening this canal and piling time· and his State papers are believed to be unsurpassed by the dirt and cotton bales upon one side where he could use them any 'President who has sat in the presidential chair; the as a breastwork. greatest Democrat of his time and of all times, Thomas Jeffer­ For four nights Jackson did not sleep but worked incessantly, son excepted. using every means at hand to strengthen his defenses. His will was nearer law in the United States of Arp.erica Sir Edward Pakenham arrived and took command of the for 20 years than that of any other man for even one year. British on Christmas Day. ~e has been more maligned, abused, and vilified than any 6528 CONGRESSIONAL RECORD-SENATE APRIL 16 man who ever sat i,n the presidential chair; yet, he never example, to the wretcbed a comforter, to the prosperous an ornament ; was finally defeated in anything in public or -private life. her piety went band in hand with her benevolence, and she thanked A man with many faults, it is true, but they were largely her Creator for permitting her to do good. A. being so gentle and so the result of environment and the influences and customs of his virtuous that slander might wound but could not dishonor. Even death, time. when he bore ber b·om the arms of her husband, could but transport her The most moral and the most continent of men, the tenderest to the bosom of God. of husbands and the mo t loving of fathers tQ his adopted In this day of divorces and unhappy marriages I would that children. Like Washington, God did not give him children all men and women could live as happily together as this great because He evidently wanted no comparisons. man and this pure and noble and gentle woman lived in the He had a will that was as adamant as the rocks of his long ago. beloved Tennessee, and an honesty as gi"eat, and as scrupulous Mr. President, I believe if -you will study the life of Jackson a regard for truth as any man that lived; the only man from the cradle to the grave and the period in which he lived who ever Iivaled Washington in the affection of all the people, you will find it more thrilling than any novel; that you will and the most magnetic and popular man that ever held public learn to appreciate more and more what we owe to the men office in America. and women of the pioneer days. Theodore Roosevelt was the only man of the nineteenth The State of Tennessee is proud to place the statue of her century who ever approached him in magnetism and popularity distinguished son in Statuary Hall to be numbered there with before the American people. the great men of our Nation and of the earth. He hated show and sham and centralization of powe-r and To the student who makes an examination of the record great and overpowering wealth, privilege, and mono_poly, believ­ of his life it is apparent that few men who have :figured ing them inimical to the best interests of the American people. largely in public affairs have exhibited more conspicuou ly He belieYed with all his heart and soul in the rights of the the elements of true greatness. He was great in every walk States but when the Union was three.tened, and when what he of life. called 'his owu native State--threatened to go As a pioneer he was foremost in building his State. As a out of the Union, he showed that, while he loved the States he soldier, as a citizen, and as a statesman he did inestimable loved the Con titution of the United States more, and at the service for his country. crucial time when the country was in a great state of excite­ As President of the United States, be threw down the bars ment as to what his course would be he appeared at a banquet and for the first time let the people have an effective share in this proud city of Washington and, ri ing in his seat and in the government of the Nation. He destroyed a inister giving his toa t, be spoke these memorable words : alliance between politics and finance that was swiftly reducing Tbe Federal Union-it must be preserved. the people to economic serfdom. He shattered the nullification movement, thereby postponing for nearly 30 years the day We have heard of others who have gotten great and ever­ when half a million of men had to die for the preservation of lasting credit for preserving the Union, and while all proper the Union. credit should be given to them, Mr. President, I feel that the Mr. President, let his enemies say what they will, be was a sptaking of these few short words a~ that time by And1:ew great American, who stood four square to all the world and Jackson and other things which he did pl"eserved the Umon earned his right to stand forever in America' hall of fame. then and was the means of keeping that sentiment and that Whatever his shortcomings, he was nevertheless always the detel·mination to preserve it in the minds of the American true chevalier. He was ever the hero and the idol of the people, people until it culminated in lasting success at Appomattox more and never did man more nobly dese'l"Ve the loyalty that the than 30 years afterwards. common people always gave him. Had there been another than the lion-hearted Jackson in the If he lived to-day, he would be :fighting the battles of the presidential chair, there might be another tale to tell to-day. people as of old, and there is every reason to believe that the Mr. President, I say it without fear of successful contradic­ America of the twentieth century would hail him as rapturously tion that Andrew Jackson was the most remarkable and color­ and follow him as devotedly as it hailed and followed him as ful man this country bas produced. its leader 100 yea·rs ago. No other President died as Jackson died. Mr. BRUCE. Mr. President, I deem it a great privilege to It may be said that the power of his will was such that he have been asked to say a few words on this occasion about even determined the day and hour of his death. When he was Andrew Jackson. No series of biographies relating to either ready to die he drew his mantle about him, suiTounded himself American soldiers or statesmen would be complete that did not with his friends and loved ones, delivered them a sermon, bade include him, for his name is indelibly associated with some of them all an affectionate farewell, expressed the hope that be the most important events in both the milita.I·y and civil history should meet them all in Heaven, black and white alike, and of the United States. then, and not w1til then, did Jackson die. Moreover. his character is marked by uch salient and vivid Mr. President while he belongs to the Nation, Tennessee traits and his career by such startling and dramatic incidents, claims Jackson.' He is her patron saint. His memory is en­ that he can justly be pronounced one of the mo t intere ting of shrined in the hearts of her people and his ashes rest in her all the men who have won conspicuous fame in our national bosom. annals...... Near the banks of the beautiful Cumberland River, and near Some one has said that it is cm·ious to reflect that among all the capital city of Nashville, in that lovely and fertile valley, is the millions of human beings who have peopled the world since the home he loved so well, the stately mansion which be called its creation there has, perhaps, not been another person so the Hermitage, pre5erved by the loving bands of th_e ladies of unique, so purely the creature of individual idiosyncrasie , as' the Hermitage Association of Tennessee. Near by m the gar­ John Randolph of Ro:moke; that the same thought might almo t den of his home is the shrine of Tennessee, a mecca for all be hazarded of Andrew Jackson. patriotic American , and in tbi lovely old garden i~ to be found He was unquestionably subject to many shortcomings and the simple monument which marks the last 1·esting place of limitations. When the poverty to which he was born, his Andrew Jackson and his beloved wife lying by his side. meager stock of education, and the rude and lawless nature of He scorned the gift of the sarcophagus of a Roman emperor his early environment are taken into account, the amazing and preferred a simple tomb and an unpretentious epitaph: thing is that his deficiencies should not have been greater than General .Andrew Jackson-born March 15, 1767; died June 8, 1845. they were. So far as syntax and spelling are concerned, be was notably The inscription on 1\irs. Jackson's tomb was written by Jack­ illiterate. When Harvard College made him a doctor of laws, son himself, and in view of some of the ungenerous things that said that he would not be present to wit­ were said of her during Jackson's lifetime and the unchivalrous ne. s her disgrace in conferring the highest literary honors upori and unfair criticisms that have been made I wi h to quote a barbarian who could not write a sentence of grammar and this inscription here as an example to the men of this age of hardly could spell his own name. In reading Jackson's letters what a chivalrous and noble gentleman and great American my own attention bas been called to the fact that on one occa­ thought of his wife in the long ago when this Republic was still sion he even misspelled the name of Calhoun, and on another young. the name of Nashville, though in the one case few names bad The inscription is as follows : oftener been on his lips than that of Calhoun; and in the other Here lie the remains of Mrs. Rachel Jackson, wife of President his famous home, the Hermitage, was in the immediate Jackson, who died on the 22d day of December, 1825, age 61 years. vicinity of Nashville. However, John Quincy .Adams sboulu not Her face was fair, her person pleasing, her tempet• amiable, her heart have forgotten, and we should not forget, that if battles were kindly. Sbe delighted in relieving the wants of her fellow creatures won and public policies consummated by grammarians only, and cultivated tbat dinne pleasure by the most UberaJ and unpre­ Marlborough, Napoleon, and Washington would not be the im­ tending metbods ; to the poor she was a benefactor, to the ' rich ·-an ;_mortal pe1·sonages that they are. 1928 CONGRESSIONAL RECORD-SENATE

Few men, too, have ever been endowed with such a high­ He has had- strung nature as Jackson. From the time that a brutal British He is reported to have affirmed- officer inflicted ineffaceable wounds on his body, because he very little t'espect for laws or constitutions and is, in fact, an able refused to black this officer's boots, until his final retirement military chief.. His passions are terrible. * ' • * He is a dangerous from public life his existence was, with a few brief intervals, man. one long gladiatorial combat. We have descTibed Jackson at his worst. Of Jackson at his One of his enemies claimed that, in the course of his lif~ Jackson had been engaged in some 100 duels, street fights, best, it is hard to speak too highly. It is sometimes said of a and brawls of one kind or another. This is, doubtless, an man that he ha.s the defects of his virtues. Of Jackson it can exaggeration, but certainly few careers in civil life have ever ~ truly said that he had all the virtues of his defects. It is been marked by such unremitting pugnacity as Jackson's in ~fiicult to conceive of courage or fortitude more superb than the early . At one time he and John his. He met danger on the dueling field, in the wilderness in Sevier went about " gunning for each other," to use a slang battle, as far as we can see, with a heart to which fear w~s a phrase of our own time. He fought a duel, though a bloodless total stranger. He conducted his campaign against the Creeks when, as the result of the wounds inflicted npon him in his col­ one, with ~~ aightstill Avery, a fellow practitioner of the law. In one of the most tragic duels in American history, he killed lision with the Bentons, he .could scarcely, from sheer weakness Charles Dickinson and received a wound himself, from which and pain, contrive to sit in his saddle. Always after that event he never really recovered. In an irregular encounter with his health was very frail; yet no peril could daunt him no Thomas H. Benton and his brother Jesse, he incurred injuries obstacle could arrest him, no amount of resistance could ~ith· which reduced his health, for a time, to the lowest point of stand him; except, perhaps, that set up by th~ ladies of Wash­ depletion, and the original cause of these injuries was the ington to the social acceptance of Mrs. Eaton ; and here, per­ fact that, in an unfortunate moment, he had consented to haps, he met defeat only because he could not trample women under his feet as he might have done men. After he killed become the second of a duelist with whom J~sse Benton had taken to the field. At one time, the popularity of Jackson in Dickinson he once declared that he would have hit him even if Tennessee was seriously impaired by the general feeling that he himself had been shot through the heart. In his struggle he was too quarrelsome and !}angerous even for its lax code with the Bank of the Uriited States he exclaimed grimly, "The of law and order. Such an aggressive nature as this, of course, bank, Mr. Van Buren, is trying to kill me, but I will kill it," was bound to assert itself, unhappily at times, even after it and so he did. Death itself was a small matter to him com­ had passed to a wiuer theater of action than primitive Ten­ pared with the frustration of any serious aim on which he had nessee. No matter how grave the measure of responsibility set his heart. His integrity was punctilious in the highest that rested upon him, down to his last days, no one could degree. He paid a debt even if he had to cut pecuniary comfort violate Jackson's acute sense of pel'Sonal dignity, or excite his to the bone to do it. He was chaste, temperate and intensely antagonism in any way without arousing in him a spirit of domestic in his habits. His romantic devoti~ to his wife uncompromising, unrelenting resentment that made every fight Rachel and to her relations is among the commonplaces of with him, small or great, a duel to the death. "He went," A~edcan history. He was a kind master. He was, if any­ Thomas H. Benton often observed of him, for " a clean victory thmg, too loyal and steadfast a friend. There was not a trace of vanity, bluster, deceit, or double-dealing in his composition. or a clean defeat." When his passions were thoroughly awakened, his imperious Under ordinary circumstances he was attentive to ad vice and temperament brooked no restraint whatever. Under those cir­ p~ompt to acknowledge error. Like most good haters, he had a cumstances, his unbending Scotch-irish will can be compared riCh res~rve of compassion and affection for any call upon the to nothing so fitly as to concrete reinforced with iron rods. gentler elements of his nature. He loved children. ·After a Even the respect that he owed, in the light of international battle in one of his campaigns a little Indian boy was found laws and usages, to His Christian Majesty the King of Spain, with the arms of his dead mother still about biro. "All his re­ or the fear that he might naturally have entertained of the lations are dead ; kill him, too," said the Indian women whom retaliatory power of His Majesty, the King of Great Britain Jackson besought to give the child nourishment. This piteous and Ireland, meant but little to him. When he was a major answer went to the heart of the general, and he took the boy general in the Army of the United States, if the President under his protection and brought him up in his home as if he would but giye the word, he stood ready to seize the entiTe were his own son. Benton tells us how he came upon Jackson Spauish Territory of Florida, without a moment's hesitation. As in the twilight of a wet, chilly evening and found biro sitting it was, he did not scruple, later, to seize and hold for a time alone before the fire with a lamb and a child between his knees. St. 1\Iarks, one of its most important post'S. He hung. unjustly, As is true of many individuals of his intense character in his as is now generally agreed, in Florida, a British subject, nature vials of wrath and wellsprings of unutterable tenderness • Arbuthnot, for alleged espionage and other offenses, and, with were found side by side. In no man was the truth of Bayard what might at lea-st be deemed rash sternness, had another Taylor's beautiful lines ever better exemplified : British subject, in Florida, Ambrister, shot. In 1821, when The bravest are the tenderest, still irritated by the delay in the delivery of Florida to him as The loving are the daring. its Ametican Governor by Spain, he even clapped the handsome Nor could there be a graver mistake than to think of Jackson and polite COlonel Callava, the Spanish Governor of Pensacola, as a mere frontiersman or roughneck. Indisputable testimony into a calaboose. to his impressive and winning presence has come down to us. After the Battle of New Orleans, while that city was still One of the handsomest and most elegant gentleman thot I under the martial law, esi:ablished by him, he hurried off Judge have ever met was the late Gen. Joseph R. Anderson of Rich· Dominick A. Hall, a Federal judge, to imprisonment, in the cus­ mond, Va.; and he was in the habit of declaring that 'of all the tody of a file of soldiers, because he had sanctioned the issuance men that he had known Andrew Jackson had the most courtly of a writ of habeas corpus against him. manners. He was a natural soldier, a natural statesman, and He was so blinded by partisanship when his feelings were a natural gentleman. Among his warmest friends and admir· fully enlisted in behalf of an individual that after his first sus­ ers were refined women. ' picions of Burr's designs in the Southwest had been laid by the The sharp contrasts apparent in the private character of latter's deceitful assurances he did not stop short during Burr's J"ackson are also visible in his public character. He lacked trial of making harangues in the streets of Richmond in defense the education, the moral discipline, and the mental training of that unscrupulous, if not treasonable adventurer. essential to the highest achievements of sober statesmanship. When the wives of the members of his Cabinet and Vice He carried his antagonistic spirit, his arbitrary will, and his President Calhoun and his own niece, Mrs. Donelson, refused inveterate partialities and prejudices into his public as well as to accord social recognition to Mrs. Eaton because of her dubious his private relations. Tolerance and compromise two of the reputation, he insisted upon her being given all the I"ights and things which enter so largely into the successful administration privileges of unquestioned innocence. of public affairs, were deeply repugnant to his self-willed dis­ Few names are oftener blended than those of Jefferson and position. To him political opponents and personal enemies Jackson, but it is interesting to recall the fact that for Jackson, were one. He detested Calhoun. The most that he would con­ apparently. Jefferson never entertained anything except dislike cede to Clay was that he was "a magnanimous rascal." For and distrust. the lack of mental culture his State papers had to be reduced In 1824 he said of J" ackson : to form by other persons. His fierce partisan temper is at When I was President of t he Senate he was a Senato-r, and he could least partly responsible for the abuses of patronage which never speak on account of the rashness of his feelings. I have se<'n him sprang up at Washington when he came to the National Capital attempt it r ~peate dly and as oftPn choke with rage. with the hungry office-seeking Demo-s at his heels. Before his Indeed, J"efferson has been said ·to- have declared that J"ackson day the United States was a republic. Since llis day it has was one of the most unfit men that he knew of for the p·resi­ b~e~ a ?emocracy, with all the failings that a democracy, as dency. distmgmshed from a republic, has. 6530 CONGRESS! ON AL RECORD-SENATE APRIL 16 But Jackson's political career, too, had its merits, and merits On that ever-memorable day, the 8th of January, 1815, when sufficiently noble to make him a great party leader and the idol Jackson ~ound himself confronted at New Orleans, by some of of the American people. If his written words were not always the bravest and most highly disciplined soldiers of the British those of the scholar, the glowing thoughts that ran off from Army, the withering :fire of his artillerymen and riflemen in his impetuous pen were, even after they had ~en dressed up 25 minutes took a bloody toll of 700 British dead, 1,400 British in academic Engli b by Edward Livingston, or some one else, wounded, and 500 British prisoners, at an expense to Jackson's all his own. Despite their grammatical imperfections they forces of only 8 killed and 13 wounded. Among the British went to their mark as surely as Jackson's bullet gped to Dickin­ dead and wounded of that day were 3 major generals, 8 colonels son's vitals. He brought to public affairs not a little of the and lieutenant colonels, 6 majors, 18 captains, and 54 sub­ instinctive sagacity which he brought to his military exploits alterns. Among the dead was Sir Edward Pakenham, the and a trust in the good sense and good feeling of the mass of gallant commander of the British Army. men as unwavering as Jefferson's or Lincoln's. Nor should we To grasp how infinitely superior in point o:f; military resource forget that one of his closest and ablest political associates­ and skill Jackson was to any of our other generals in the Van Buren-has told us that Jackson was one of the calmest War of 1812, one has but to read the whole story of the British and most self-contained of men when facing a real public attack upon New Orleans in 1814 and 1815. The tireless ac­ crisis. His patriotism was ardent and impassioned. He loved tivity, the keen intelligence exhibited by Jackson at every American ideals and institutions as they could be loved only stage of the attack, his own night attack on the British, his by a man who bore British scars on his head and hand, had effective use as an agency of defense of th~ Mis issippi River, inhaled the free air of the western wilderness, and had the good judgment that be showed in the selection of his ascended from the lowest levels of human fortune to the ground, the skillful disposition that he made of his forces, highest. and the celerity with which be met every turn in the vicissitudes The possession of power and boundless popularity had no of the British as ault, all stamp him as a great commander. effect upon his prejudice against the reeligibility of the Presi­ Nor would any review of Jackson's military achievements be dent. Indeed, notwithstanding his fervid temperament and complete that did not mention the uncommon degree of efficiency unfaltering self-confidence he seems to have been moved in his evidenced by his military operations iij. Florida both before and career to a singularly limited degree by political ambition. He after the Battle of New Orleans. cared quite as much for the Hermitage as be did for the It is not given to many individuals to be a brilliant soldier, White House. His real, lasting interests centered about his a renowned President, and a famous party leader, but, despite Tennessee home, his lands, his crops, the friends of his early his infirmities of education and temper, all of these things it manhood. His political convictions were not always maintained can be truly said Jackson was. with entire consistency. It is a nice question whether his war Every year on the 8th day of January the anniversary of the upon the Bank of the United States did not do fully as much Battle of New Orleans is commemorated in the United States harm as good. Its value consisted mainly in the early warning with due ceremony. that it ga¥e to American plutocracy that American democracy The enthusiasm kindled by the political leadership of Jackson includes the money king as well as all other kings in its political in the breasts of his faithful followers was so intense that at excommunication. Unquestionably the countenance that Jack­ every presidential election a certain number of Democrats are son gave to what came to be known as the spoils system of still jocularly supposed to cast their votes for him. politics helped to beget many of the administrative scandals And even if all the other executive acts of Andrew Jackson that have attended the practical workings of our Government. should be forgotten, the people of the United States will never But it can not be denied that be never gave his assent while forget the Jefferson Day toast offered by him which chilled the President to a public policy that be did not honestly believe to first stirrings of disunion during his presidential career: "Our be for the best interests of his country. In his transparent .sin­ Federal Union, it must be preserved " ; nor the noble and power­ cerity of character, in the unfailing courage with which be ful proclamation against the nullification of the Federal Con­ asserted his political beliefs, and in the popular faith in the stitution which did more to implant a sense of inviolable entire disinterestedness of his public motives, as well as in his nationality in the bosom of the American people than any­ keen intuitive political insight, are to be found the explanation thing in our history except the closing scenes of the Civil War of the fact that he earned the unmeasured confidence of the at Appomattox. American people, never failed to carry his point so long as he We can only trust that this national spirit will be forever chose to remain on the public stage, and lef~ that stage with the maintained by a patriotic vow on the part of the American plaudits of an adoring multitude ringing in his . ears. In his people as stern and immutable as the tremendous oath which • time be was pitted against some of the ablest men in our politi­ Jackson sometimes uttered when announcing his inflexible cal history-such as Webster, Calhoun, and Clay-but there was resolves : " By the Eternal ! " not one of them who did not go down under his imP'etuous onset Mr. FESS. Mr. President, Members of the Senate accus­ as tenpins go down before the rush of a ball in a bowling alley. tomed to listening to addresses delivered in the Chamber will Even when he incurred censure for one of his acts it was cer­ appreciate an innovation where the occasion is to turn away tain to be expunged by popular favor in process of time. The from material matters, in which we talk about the industrial fine imposed upon him for contempt of court by Judge Hall greatness of the Nation, to study for a time the real source of after his release was refunded to him years afterwards with the real greatness of our country. I think without doubt that interest by Congress. When a resolution censuring him was greatness will be general1y conceded to be in the character of adopted by the United States Senate hls friends never rested our leaders. That is not only true in political life but it is true until black lines of cancellation had been drawn around the in every activity of life. Here in this Chamber, where day record relating to it in the Senate Journal. after day we are discu sing the material greatness that is Jackson issued victoriously from all his important political detailed by the figures of the wealth of the Nation, I think contests, and his military career was attended by the same it very fitting and appropriate that we turn aside to consider unvarying success. Though of only a few years' duration alto­ for a moment a character like Andrew .Jackson. gether it was long enough to demonsU'ate that he was a soldier When I study this character, as I must do it, rather from the from his birth. · standpoint of history, I can recognize certain important con­ All his operations were characterized, in the highest degree, tributions which were made by this leadership to our national by an innate genius for war that enabled hrm, almost unerr· system. I recognize qualities of leadership in Andrew Jackson ingly, to realize the practical means by which ~s _objects were that were very uncommon. When I run over the list of the to be accomplished ; by sleepless energy; by rap1dity and firm­ Presidents who preceded him and note what is regarded as ness of decision ; by boldness tempered by the proper measure mental characteristics which qualify for the Presidency and of prudence; by an heroic spirit, which rose superior even to then study the life of Jackson in contrast, I find it a very inter­ famine and mutiny in his own ranks ; and by that personal · esting study. All of those, unless it would be Washington, a cendancy, partly the fruit of sympathetic fellowship and would have been regarded cla sical in their education, very partly the fruit of rigorous, yet judicious, discipline which is the erudite in their acqui ition of knowledge from the sources of supreme token of true generalship. higher learning. Quite different in the character of Jackson. .Anything better directed or deadlier than his descent on the . He, on the other hand, was self-educated, and while people Creeks at Hor eshoe Bend, it would be bard to imagine. His speak of him as a pioneer, he probably was the best representa­ victories we1·e always so crushing that none of them can be tive of signal achievement of his time or the best that could said to have been dearly bought. When the Indian dead at be realized under the conditions undeT which he lived. Horseshoe Bend were counted, they were computed to number The source of his popularity is somewhat difficult to ascertain. some 757 individuals, as against 55 of Jackson's men killed, The measure of his popularity is in a maximum degree when and 146 wounded; and of these more than half were Indian contrasted with others. In 1828, 100 years ago, when he was allies of his. a candidate the second time for the Presidency, he fell heir to 1928 CONGRESSIONAL RECORD-SENATE 6531 the tremendous popular impulse that was due to the fact that it where ladies were assembled as the most refined individual of appeared he had been counted out for the Presidency in 1824, that or any other time. That beautiful relationship that is so when in that year there were four contending candidates. well underst-ood between him and the wife makes me think of These men were of the type of John Quincy Adams, the scholar. that remarkable incident in the life of John Stuart Mill, the of his day; William H. Crawford, a great statesman; and great philosopher of Britain, who when the helpmate died had "Harry of the West," , r~ar

.ADJOURi"ifMENT nection with its Indians. We have pas sed one or two minor Mr. JONES. ~ir. President, I move that the Senate adjourn. bills to permit the Indians to secure an enlarged acreage. We The motion was agreed to; and the Senate (at 4 o'clock and passed a bill the other da-y to give the Acoma Indians a large 50 minutes p. m.) adjourned until to-morrow, Tuesday, April acreage of our Federal lands. My information is that pro­ 17, 1928, at 12 o'clock meridian. tests against _this from New Mexico, even from some active in politics in New Mexico, have come to Washington, and joined with that is the further fact that that bill seems to be tied up HOUSE OF REPRESENTATIVES in committee in the Senate. There .is other similar legislation that we ought to pass to permit the Navajo Indians to use MoNDAY, April16, 19t28 their money to buy more land. As I understand it, there is a The House met at 12 o'clock noon. strong protest from New Mexico against that being done unless The Chaplain, Rev. James Shera Montgomery, D. D., offered the land is allowed to be taxed. That is a precedent that we the following prayer : would approach with a good deal of diffidence. In view of the fact that there is such a sentiment in the gentleman's State Most merciful Father, Thou who art without the birth of that stands for the present in the way of the Federal Govern­ dawn or the death of dark, because of grateful memories we ment J)€rforming its full duty to the Indians in New Mexico, are encouraged to approach Thee. Thou art the pledge of all it seems to me that the Federal Government ought to wait a our joys and the surety of all our hopes. Take our wills, little before it performs this very generous act of grace pro­ renew their strength, and blend them witb. Thine. Reclaim us posed in this bill. I feel obliged to object, although I shall be from any ways of wrong, and under the gentle pressure of Thy glad to reserve the objection if the gentleman from New Holy Spirit bless us with the heart that forgives ; may hate Mexico, whom I see on his feet, desires to say anything. never become the fatal weakness of our characters. Deaden Mr. MORROW. Will not the gentleman permit the bill to be our fears and lighten our hearts and take us by the hand and passed over without prejudice, to be referred to later? lead us on. Should evil approach, may we overcome it with Mr. CRAMTON. I shall be glad to agree to that. Mr. good, and know that this kind of a life can do everything else Speaker, I ask unanimous consent, as the gentleman from New but fail. In the Master's name. Amen. Mexico has indicated, that the bill be passed over without prejudice. The Journals of the proceedings of Saturday, April 14, 1928, The SPEAKER. Without objection, it will be so ordered. and Sunday, April 15, 1928, were read and approved. There was no objection. CONSENT CALENDAR MO ~ TEZUMA NATIONAL FOREST, OOLO. The SPE.AKER. The Clerk will report the first bill on the Consent Calendar. The next business on the Consent Calendar . was the bill (H. R. 6854) to add certain lands to the Montezuma National BONDS OF SILVER CITY, N. MEX. Forest, Colo., and for other purposes. · The first business on the Consent Calendar was the bill (H. R. The Clerk read the title of the bill. 9207) granting to the State of New Mexico certain lands, for The SPEAKER. Is there objection to the present considera· reimbursement of the counties of Grant, Luna, Hidalgo, and tion of the bill? . Santa Fe, for interest paid on railroad-aid bonds and for the Mr.· LAGUARDIA: Mr. Speaker, reserving the right to ob­ payment of the .plincipal of railroad-aid bonds issued by the ject, is there any oil or gas on these lands covered by this bill? town of Silver City, and to reimburse said town for interest paid Mr. TAYLOR of Colorado. . No. There may be some prospect­ on said bonds, and for other purposes. ing permits on some of it, but there is no oil or gas well~ The Clerk read the title of the bill. within 200 miles of them, I understand. The Agriculture De­ The SPEAKER. Is there objection to the present considera- partment is very much in favor of this bill. They say there tion of the bill? . is a hundred thousand dollars' worth of timber on this land, Mr. CRA!IITON. Mr. Speaker, reserving the right to object, and they want the timber and the land converted into a forest and I feel now that I shall be obliged to ·do so, although I shrul reserve to save the timber. be extremely sorry to do so on account of the gentleman from Mr. LAGUARDIA. Is this a conservation measure? New Mexico [Mr. MoRRow]. The bill is one that is a very Mr. TAYLOR of Colorado. Oh, yes; it is purely a conserva­ generous propo!:!ition on the part of the Federal Government; tion measure. I feel that it ought to pass. The people in that The bonds in question, in my judgment, never have represented country are all in favor of it. any real obligation on the part of the Federal Government. Mr. LAGUARDIA. If it is a purely conservation measure In the first place, they were held invalid because of the viola­ there would not be any objection to it. tion of limitations of the Federal law, and, later when Congress Mr. TAYLOR of Colorado. I ought to say, in fairness to sought to validate them, Congress expre sly provided that there the H ouse and to the Interior Department, that the Interior was to be no obligation against the Federal Government. So Department felt there should be further investigation or show­ on down through the history of it alL Finally, 1,000,000 acres ing as to its timber on the land, and for that reason the Interior were turned over for the purpose of taking care of these obli­ Department did not approve the bill. They did not disapprove gations, the balance to be turned into the school fund. So the of it unconditionally, but they are not fully satisfied as to the Federal Government gave 1,000,000 acres, enough to take care timber and forest character of the land. They do not know of all of the obligations, and the balance to go into the schooJ which. fund, and as a matter of fact the million acres were more The Agricultural Department has made two or three cruises than enough to take care of all of the obligations included in of the timber and they do know the nature of the land and are this bill ; but one town, through mistake, which, of course, was quite anxious to have it put into a forest reserve, and every­ not the fault of the Federal Government, was not included in body in that country is anxious that it be put in a forest re­ that authorization. The gentleman from New Mexico [1\Ir. serve in order to conserve that timber, because it is now being MoRRow], in my conferences with him, urges that although slashed by everybody and there is no control or regulation. there is enough available from the million acres it can not now The practice is that anybody goes out and cuts and slashes as be used for this town of Silver City and its bonds because an much timber as he pleases and may be arrested and fined $5 · amendment to the constitution of his State as well as an act· and then go out and do it again. ·of Congress would be needed. Therefore, Mr. Speaker, my :Mr. L.AGUARDIA. But the Interior Department asks that conscience is clear in this that there is no obligation on the the bill be not pas ed. part of ·the Federal Government. If this bill should pass, it Mr. TAYLOR of Colorado. If the House thinks it ought to go is an act of generosity on the part of the Federal Government. over in order that the people may make a further showing, or Due to the fact that the bill calls for an allotment of public that the Interior Department may make further investigation, lands instead of cash, and the further fact that the gentleman I have no objection. But the .Agricultural Department and the from New Mexico [Mr. MoRROW] is willing to reduce the acre­ people out there want it, and I feel that it ought to be passed. age I have been led to give very careful study to his proposition. Nobody can be injured and the Government and those counties So far as I am concerned, I would not object, except for one and the people of those counties will all be benefited by this thing. . measure. This bill calls for the exercise of very material generosity Mr. LAGUARDIA. But you want to reconcile the Depart­ on the part of the Federal Government. There is a certain ment of Agriculture and the Department of the Interior so that element which is active now in New Mexico and which, in my the House could be properly informed. judgment, is not of the character to appreciate such gener­ Mr. TAYLOR ·of Colorado. I favor that being done, of. osity upon the part .of the Federal Government. The Federal course, if I can; but the people out there are very anxious that Government has some large obligations in .New Mexico in eon- the bill be passed and in this case I know the Agricultural,