-. 3746 CONGRESSION.AL RECORD-SENATE. A-uGusr_r 11,

By 1\Ir. PURNELL: A bill (H. R. 8372) LTanting an increase He also presented a petition of sunilry citizens of Ensign, of pension to Isaac J. Green; to the Com~ttee on Invalid Pen· Kans., praying for the repeal of the " stamp " ta..--c on medicines, sions. toilet preparations, etc., which was· referred to the Committee By Mr. SANDERS of Indiana: A bill (H. R. 8373) granting on Finance. a pension to Thomas A. Puyear; to the Committee on Pensions. He also presented a petition of sundry citizens of Winfield, Kans., praying for the repeal of the so-called daylight-saving law, which was ordered to lie on the table. _ PETITIONS, ETC. 1.\.Ir. CURTIS (for 1\lr. KEYEs) presented a petition of sundry Under clause 1 of Rule XXII, petitions and papers were laid citizens of Somersworth, N. H., praying for the repeal of the · on the Clerk's desk and referred as follows : tax on ice cream, soda, and soft drinks, which was referred to By the SPEAKER: Petition of Legislature of the State of the Committee on Finance. Nebraska ratifying the proposed amendment to the Constitu· l\lr. GRONNA. I present a memorial from the Jamestown tion extending the right of suffrage to women ; to the Committee (N.Dak.) Commercial Club with reference to the zone system of on Woman Suffrage. rates of postage. I ask that it be referred to the Committee on Also (by request), petition of council of the dty of Portland, Post Offices and Post Roads and printed in the RECORD. Oreg., indorsing any action by the President to lower the cost There being no objection, the memorial was referred to the of living and recommending a nation-wide campaign to bring Committee on Post Offices and Post Roads and ordered to be about this result; to the Committee on Interstate and Foreign printed in the RECORD, as follows: Commerce. JAMESTOWN COMl\fER.CI.AL CLUB, By l\1r. LUFKIN: Petition of the Tuesday Club of the Maple Jamestotvn, N. Dak., July f!9, 1919. Street Chuxcb, of Danvers, in favor of a league of nations; to Whereas the executive committee of the Jamestown Commerical Club the Committee on Foreign Affairs. after considerable investigation, discussion, and consideration, are of the unanimous opinion that any change in present postal laws that By Mr. POU: Petition of 383 farmers of Wake County, N. C., makes a flat rate for transportation of periodicals to all points in the protesting the placing of duty on the importation of potash and should be opposed; and other ingredients used in fertilizer; to the Committee on Ways Whereas we believe that the Jaw, practically universal, that pay for service rendered should be in proportion to the cost of such service and Means. is entirely appropriate in this case, and that this principle is now By Mr. RAKER: Petition of Richmond City Council, Rich­ being recognized by the Government in charging periodical transpor­ mond, Calif., indorsing location of a United States naval academy tation by weight and distance and is one of the principal factors in on the Pacific coast; to the Committee on Naval Affairs. rate malting by rate-making commissions: Now, therefore, be it Resol1:ed, That we sin-cerely hope you will use your best efforts in Also, petition of physicians, lately medical officers of the Congress t(l defeat any efforts of publishers to repeal the zone system _United States Army, of , Ill., indorsing House bill 2492, and revert to the old flat rate of postage on the advertising pages of for conferring of rank on the Army Nurse Corps ; to the Com­ their periodicals. mittee on Military Affairs. JAMESTOWN COMMERCIAL CLUB. L. B. NIEMEYER, President. Also, petition of Pacific Rice Growers' Association, Sacra­ ANDREW HAAS, Secretm·y. mento, Calif., protesting against H.ouse bill 8115 ; to the Com­ 1\lr. FLETCHER presented a resolution adopted by the Cen· mittee on the Judiciary. tral Trades and Labor Council, of Jacksonville, Fla., favoring By Mr. SMITH of Michigan: Petition of Association the ratification of the proposed league of nations treaty, which of Postmasters for increased pay; to the Committee on the Post was referred to the Committee on Foreign Relations. Office and Post Roads. He also presented a petition of sundry citizens of Key 'Vest, Fla., praying for the repeal of the tax on ice cream, soda, and soft drinks, which was referred to. the Committee on Finance. SENATE. Mr. CAPPER presented a memorj.al of . sundry citizens of Barton County, Kans., remonstrating against Federal control ~fONDAY, August 11, 1919. of the meat-packing industry, which was referred to the Com· The Chaplain, Rev. Forrest J. Prettyman, D. D., offered the mittee on Agriculture and Forestry. following prayer : ·He also presented a petition of sundry citi~ens of the State Almighty God, we come to Thee to worship and lift up our of Kansas praying for the repeal of the tax on medicines, toilet hearts in grateful acknowledgment to Thee for Thy boundless preparations, etc., ''Thich was referred to t11e Committee on goodness to us. -We would not be less grateful because Thy Finance. bounties are ministered to us through a thousand avenues of Mr. HALE presented a memorial of the Chamber of Commerce nature. We would not forget the provision Thou hast made for of Auburn, Me., remonstrating against Federal control of the us on the earth, the sea, the sky, because these come to us medi­ meat-packing industry, which was referred to the Committee on ated by the band of nature. We remember the heart that is Agriculture and Forestry. back of all, the heart of God, the heart of love. We praise Thee Mr. PAGE presented a petition of the congregation of the for Thy goodness to us. We pray Thee to accept our expressions Second Congregational Church of Bennington, Vt., praying for of gratitude. In Jesus' Name. Amen. the ratification of the proposed league of nations treaty, which The Secretary proceeded to read the Journal of the proceed· was referred to the Committee on Foreign Relations. ings of Friday last, when, on request of Mr. CuRTIS and by unani­ Mr. TOWNSEND presented a memorial of the Michigan Hard­ mous consent, the further reading was dispensed with and the wood Manufacturers' Association remonstrating against the Journal was approved. ratification of the proposed league of nations ~aty, which was referred to the Committee on Foreign Relations. . GOVERNMENT DORMITORIES. He also presented a petition of the Federation of Labor of The VICE PRESIDENT laid before the Senate a communica­ Flint, llich., praying for the adoption of the so-called Plumb tion from the United States Housing Corporation, transmitting, plan for the operation of railroads, which was referred to the in response to a resolution of the 2d instant, certain information Committee on Interstate Commerce. · relative to the project known as the Government Hotels, which He also presented a resolution adopted by the Michigan State was referred to the Committee on Public Buildings and Grounds. Manufacturers' Association favoring the return to private PETITIONS AND MEMORIALS. ownership of the railroads of the country, which ,-vas referred MP. CURTIS presented a memorial of sundry citizens of to the Committee on Interstate Commerce. Newton, Kans., remonstrating against universal military train· He also presented a petition of the Social Science Class of ing, which was referred to the Committee on :Military Affairs. the South Baptist Church of Lansing, Mich., praying for the He also presented a resolution adopted by Dewey Lodge, No. enactment of legislation to reduce the high cost of living, whicll 199, Brotherhood of Boilermakers and Iron Shipbuilders of was referred to tlle Committee on the Judiciary. America, of Horton, Kans., favoring the adoption of the so-called He also presented a petition of sundry citizens of l\Iuskegon, Plumb plan for the operation of railroads, which was referred Mich., praying for the repeal of the tax on ice cream, soda, soft to the Committee on Interstate Commerce. drinks, etc., which was referred to the Committee on Finance. He also presented a memorial of sundry citizens of Oswego, Mr. COLT presented a resolution adopted by the Equal Kans., remonstrating against the ratification of the proposed Suffrage League of Barrington, R. I., favoring the ratification league of nations treaty, which was referred to the Committee of the proposed league of nations treaty, which was referred on Foreign Relations. to the Committee on Foreign Relations. He also presented a petition of sundry citizens of the State of He also presented a petition of the Chamber of Commerce, vf Kansas, praying for the establishment of a Department of Edu· Providence, R. I., praying for the return to p1ivate owners of - cation, which was referred to the Committee on Education and the railroads of the country, which was ref ~ rrell to the Com· Labor. mittee on Interstate Commerce. ·

• 1919. . CONGRESSIONAL RECORD-SENATE. 3747

He also presented a resolution adopted by the Americaniza­ ?.Ir. President, I wish to say that I think that shows a splendid tion Committee of the City of Providence, R. I., favoring the American spirit. I am delighted to know that the soldiers, enactment of legislation providtng for the training of alien sailors, and marines takes such a view. I think it is a healthful women in citizenship, which was referred to the Committee on sign when, of their own .accord, they protest against any at­ tile Judiciary. tempted coercion or direction of governmental action by any :Mr. LODGE. I ask to haye printed in the RECORD, without particular class of our people. It is a very strong protest, it reading, a telegram from constituents of mine in Massachu­ seems to me, against any form of Bolshevism in this country, and setts. as such it ought to be commended, and I desire to commend it. There being no objection, the telegram was ordered to be Another hopeful sign in this telegram is their position that printed in the R ECORD, as follows: whatever reforms or remedies are necessary they should be TIOSTO::-<, MAsS., A ugust 6. brought about through regular governmental agencies and proc­ Senator LODG E, esses. That sentiment, also expressed in this telegram, I desire Washi ngton, D. a.: to commend. By unanimous vote citizens of who are delegates repre­ senting every one of Ireland's 32 counties, with 20,000 members in LOSSES OF PUBLIC BUILDING CONTRACTORS. Greater Boston, of whom more than 1,500 fought for America, protest ratification of the league of nations in its present form a-s utterly in­ Mr. FERNALD. I report back favorably from the Committee consistent with the ideals of liberty and independence upon which thl::i on Public Buildings and Grounds without amendment the bill Government is founded. We are united in believing that our sovereign (H. R. 6323) for the relief of conb·actors and subcontractors rights are jeopardized; tha t articles in the league of nations commit this country to nctions which would uphold autocracy and turn a deaf for · the post offices and other buildings and work under the ear to all peoples struggling for liberty ; that the ideals for which we supervision of the Treasury Department, and for other purposes, entered the war have been swept aside throu·gh secret diplomacy, which and I submit a report (No. 146) thereon. has evolved this document. We urge you as Representative of Massa­ chusetts to use your influence to prevent its ratification. Mr. President, this is a matter of very great imi)ortance to CENTRAL COUNCIL IRISH COUNTY ASSOCIATIONS. the business men of this country who entered into contracts JOHN FoLEY, President. with the Government under the Treasury Department to con- FRA~K M. TIERNAN, WILLIAM H. COLLINS, struct public buildings ail over the United States...... WILLIAM OsBORNE, The bill has the approval of the ex-Secretary of the Treasury, Vice Presidents. l\1r. McAdoo, and the present Secretary of the Treasury, Mr. WILLIAli-I H. GORMLEY, JOHN MONAHAN, Glass. On account of the high prices of all materials, which Secretaries. immediately became effective after we entered the war, it was Mr. WALSH of Montana. I present a joint memorial of the necessary for these contractors to pay two and sometimes three Legislative Assembly of the State of Montana, relative to cer­ and four times as much for their materials as they expected to tain legislation pending before the Senate. I ask that it be pay when the contracts were taken previous to the war. The read, and I call the especial attention of the Senator from Iowa activities of the War and Navy Departments in taking men fr·om [Mr. KENYON] to the memorial. them left them without men, and to those they did have they The resolution was read and referred to the Committee on were obliged to pay m_uch higher wages. Sometimes their organi­ Agriculture and Forestry, as follows: zations were entirely broken up. The contractors would llave one or two hundred men on a · job to-day and would be entirely House joint memoriul No. 1. out of men to-morrow. The Priority Board inspected their (Introduced by McQuarrie.) changes and they were unable to get material. Some of it ex­ A memorial to Congress relating to the production, sale, and distribution of live stock and live-stock products, dairy products, poultry and pected promptly was delayed for many months. poultry products in commerce. These contractors to-day are on the verge of bankruptcy. To the honorable Senate and House of Representatives of the United This bill gives them relief, inasmuch as they are ready to take States in Congress assembled: up the matter with the Treasury Department and show tlleir We, your memorialists, the Sixteenth Legislative Assembly of the claims. In no case are they to have acy profit, but simply to State of Montana, ·in extraordinary session convened, respectfully repre­ sent and petition that- base their settlement upon the loss which was sustained by the Whereas there is now pencling before the Congress of the United activities of the military department. States a bill known as S. 2202, introduced by the Ron. W. S. Mr. SPENCER. The bill has passed the House. KE ' YON, Senator from Iowa, providing for the licensing by the Fed­ Mr. FERNALD. It passed the House by a very large majority. eral Government of all persons engaged in the business of slaughter­ ing live stock, prepilring Ilve-stocl{ products for sale, engaged in the It was unanimously reported by the Public Buildings and business in commerce ot buying, selling, or shipping live stock for Grounds Committee of the House and also by the Senate Com­ slaughter and live-stock products, conducting or operating stockyards mittee on Public Buildings and Grounds. It seems necessary in which live stock is handled in commerce, performing services in commerce with respect to live stock handled on a commission basis that these contractors should have speedy relief, and I ask that or in connection with stockyards, collecting in connection with stock­ the bill may be considered at this time. yards and distributing in commerce live-stock market quotations or Mr. SMOOT. Let it be read first. live-s tock market news, buying, selling, and shipping dairy products, poultry and poultry products in commerce, and providing for the The VICE PRESIDENT. The bill will be read. regulation and control thereof by the Federal Government; and The Secretary read the bill, as follows : Whereas the le.,<>islative assembly is of the belief that all such industries Be it enacted, etc., That the Secretary of the Treasury is hereby au­ and businesses should be subjected to Federal control and regulation; thorized and directed, under such regulations as he may prescribe, to a nd receive fully itemized and verified claims and reimburse contractors and Whereas the legislative a ssembly is of the belief that the said S. 2202 their subcontractors, including material men, for the construction, im­ presents legislation effecting that object : Be it therefore provement, special repair, equipment, or furnishing of post offices and R esolved by the Sixteenth Legislativ e Assembly of the State of Mon­ other buildings or work under the supervision of the Treasury Depart­ tana, the House and Senate concurring, That we do respectfully petition ment (as well as the United States courthouse in the District of Colum­ and earnestly pray the honorable Congress of the United States for the bia and the approaches and retaining wall to the Lincoln Memorial in passage of S. 2202; and be it further the District of Columbia) whose contracts were awarded or whose bids R esolv ed, That a copy of this memorial be forwarded by the secretary as thereafter accepted were mailed or delivered to the proper govern­ of state of the State of Montana to the Senate of the United States. mental authority prior to the entrance of the United States into the. war that a copy of this memorial be forwarded by the secretary of state of with Germany, to wit, April 6, 1917, and whose contracts have been or the State of Montana to the House of Representatives of the United will be completed after said date, for loss due directly to increased States, and that copies of this memorial be transmitted by the secretary costs thereafter arising, due either, first, to increased cost of labor or of state of the State of Montana to the Senators and Representatives in materials, or, second, to delay on account of the action of the United Congress from the State of Montana with a request that they use every States Priority Board or other governmental activities, or, third, to effort to bring about an accomplishment of the ends and purposes commandeering by the United States Government of plants or materials herein set forth. shown to the Secretary of the Treasury to have been sustained by them in the fulfillment of such contracts by reason ot war conditions Mr. McKELLAR. I desire to read a telegram from Nash­ alone : Prov-ided, That any subcontractor may submit his claim through ville, Tenn., which is as follows: the contractor or to the Secretary of the Treasury. And the Secretary N.I.SHVILLE, TEN.l'i., Augt,st B, 1919. of the Treasury is hereby directed to submit from time to time estimates for appropriations to carry out the provisions of this act : Provided ftw­ lion. KE~NETII D . MCKELLAR, ther, That no claims for such reimbursement shall be paid unless tiled Washington, D. a.: with the Treasury Department within three months after the passage Tennessee Post No. 6, of the American Legion, composed of 300 dis­ of this act: And provided further, That in no case shall the contractor charged soldiers, sailors, and mwrines of Davidson County, Tenn., at its or subcontractor be reimbursed to an extent greater than is sufficient • regular meeting held last night passed, by unanimous vote, a resolution to cover his actual increased cost in fulfilling his contract or subcon­ declaring this organization to be opposed to all attempts which are now tract, exclusive of any and all profits to such contractor or subcontractor; being made, or may hereafter be made, to coerce the President or the nor shall such reimbursement include any advances or payments made Congress of the United States or to seek by undue influence to control by the sureties of such contractor or subcontractor in executing the or uirect governmental action. I am instructed by this resolution to work, but the surety on any contract coming within the provisions of wire you that this post indorses your efforts to settle and adjust the this act who, as surety, bas completed, or may complete, the work of railroad question and reduce the cost of living through regular govern­ any defaulting contractor on any such contract, or who has furnished mental agencies and processes, and that to this end we pledge you our financial assistance to a failing contractor on any such contract whereby unswerving and loyal support and cooperation to the limit. · such contractor has been enabled to complete such contract, may file POST NO. G, A:\IERICAN LEGION, DAVIDSON COUNTY~ TENN. claim, within the period hereinbefore fixed, and be reimbursed in the By "'· P. CoorEn, Post Oonunander_ manner hereinbefore provided for the increased cost due to the causea 3748 OO:NGRESSIO- AL R.EOORD- SE ATE. AUGUST 11,

hereinbefore specified of theJabo.r and material supplied in so completing an;v: such contract, or for the inc1·eased cost of 'the labor and .ma:terlal By Mr. DIAL = paid for from funds so furnished by such surety: And provictea further, A b~ll (S. ~756) to pre cr_ibe tlie method of capital punish­ ~~ha~ the Secretary o~ the Treasm·y shall report to Congress at i.be be­ gmrung of each sessiOn thereof 'the amount of each expenditure nnd ment m the D1str1ct of Columbia; to the Committee on tile Dis­ the facts on which the same is based. trict of ·Columbia. By l\fr. NORRIS: 1\Ir. HITCHCOCK. I should like to inquire of the Serurtor from Maine, the chairman of the committee, who has asked for _A bill (S. 2757) to amend the nafuralization law. ; to the Com­ the present consideration of the bill, whether the committee se­ mittee on Immigration. cured any definite information as -to the number of claims that By l\lr. Sl\IOOT: would PO made under it and any approximation of the total A bill ( S. 2758) pro•iding for an exchange of lands between amount. !.Involved? the Swnn Land & Cattle Co. and the United States· to the l\fr. FERNALD. Yes; we had a hearing last Friuay. :Many Committee on Public Lanc1s. ' of the contractors appeared. By l\lr. CURTIS : Mr. HITCHCOCK. I will state that 1 am resening the right A bill . ( S. 27~9) pro"Vic1ing a pension rate of $30 per month to object to the present consideration of the bill. £or certarn old1ers and !'::ailors of tile Ci"Vil War, a rate of ~60 1\fr. FERNALD. The Secretary of the Treasury wrote a :per month for total incapacity for labor, ami for other pur­ letter which is attached to the bill. There are about 80 projects po es; involved, and the estimated expense is about $2,132,000-that is A bill (S. 2760) granting an incr·ease of pension to Abram F . the.estimate made by the Secretary of the Treasury, 1\.lr. Glass. Dar t. (with accompanying papers) ; These men appeared before the committee last Friday, and it A bill (~. 2761) granting an increase of pension to nouert H. was certainly a pathetic story which -they told. Almost ey-ery Wynn_e (m~_accompan~tng paperN); one of them is on the verge of bankruptcy, caused entirely by A btll (S: -162) granting a pen. ion to Jennie C. Rathbun (wjth no fanlt of their own. As all will remember, the public-building accompanymg paper ) ; contractors were allowed to work their men only 8 hours, A blll (S. 2763) granting a pension to Annie E. White ("ith while those engaged in war activities worked their men 10 and accompanying papers) ; 11 and sometimes 12 hours, and at pay and a half; and the A bill (S. 2764) granting a pension to Noah Hardy (wHll ac- wages of common laborers has advanced from $2 to $4 anli $5 companying papers) ; and · a day. The War and Navy Departments were both bidding A b!ll ( S. _2765) granting an increa e of pen ion to W 1lliam against each other for men, taking them from these organiza­ H. l\!tze (w1th accompanying paper ) ; to the Committee on tions, and they were left high and dry to finish their work. PensiOns. Mr. IDTCHCOOK. Suppose these contraCts had been made By l\Ir. l\IcKELLAJ{: by private corporations, would the contractors na-ve had any A bill (S. -?766) ..mah-ing appropriation for payment of claims valid claim against those corporations in such cases? of Jolin ener, '1'., and John Se"Vier, jr., in accordance with l\1r. FERNALD. If the trouble had been caused by the priYate report ami finulngs of the Court o£ Claims as reported in House citizens or the corporations, I think they would. Documents Nos: J_302 and l31 under the pro•ision of the act · l\fr. HITCHCOCK. I doubt very much whether there is any approved March 3, 18 3, kllO\Yn as the lJowman Act· to the · parallel for reimbursing contractors for losses occurring in this Committee on Claim ·. ' way. I realize that there probably were some losses. By 1\lr. CALDER: l\1r. FERNALD. Some of the- contractors appearing before A joint resolution ( S. J. lle . 85) for a special po. tage , tamp the committee last Friday said that they were reimbursed on to comme?JOl:ate the three hundredth anniver ary of the landing private contracts where they were constructing buildings for of the P1lgnms ; to the Committee on Po t Office anu Post private individuals. Ronds. Mr. HITCHCOCK. Has the committee presented a written report? LICElii' l="G OF CORPORATIONS. Mr. FERNALD. Yes. i\Ir. KELLOGG. I desire-to introduce a bill to proviue.for the l\fr. HITCHCOCK. Does the report contain a list of the licensing of corporations engaged in interstate commerce and projects? to ·prevent monopolies and undue restraint of trade, which I a k l\fr. FERNALD. .I think tlle House committee report uoes to have referred to the Committee on Interstate Commerce. contain such a list. That report is with the bill at the Secre­ The bill ( S. 2754) to p1·ovide for licensing corporation en­ tary's desk. gaged in interstate commerce and to prevent monopolie and l\fr. IDTCHCOCK. I am inclined to th.ink that it is .rather a undue restraint of trade was read twice by its title. dangerous precedent to establish, if the Government is going to l\1r. KELLOGG. Mr. President, I ·eek the indulgence of the begin reimbursing individuals for-war losses. Senate for about five minutes while I make an explanatory Mr. FERNALD. lt simply gives these men the privilege of ~tatementrespecting the b?J I offer, in o::ueriJlat it may appear taking their cases before the Secretary of the Treasm·y. It rn the RECORD and be m-ailable for COJlSlderution by the proper does not settle the claims at all, but gives them a permit to pre­ committee. sent their claims before the Secretary of the Treasury. Some years ago, after the pro ecution of the Stanuaru Oil Mr. SMOO~. .I did not so understand the bill. As I under­ Co. by the Government, I became comi.nced that other means stood it, it not only .gives them the right to p1·esent their claims were neces._·ary to regulate trusts and combinations in restraint but provides -that the Secretary of the Treasury may pay what­ of trade. ever is determined to be the actual loss. At that time I prepared a bill embodying some of my "Views l\fr. ·FERNALD. The Secretary -of the Treasury is to deter­ but nothing was ever done with it. I have since re'i etl it' mine the actual loss. and I now submit it to the consideration of the Congre ns ~ .1\Ir. KING. If my colleague will allow me, this i the lan­ suggestion . guage of the bill : .In ·dew of the present conditions, I think I should wish to That the Secretary of the Trea1>ury is llereby -authorized an!l directed make some amendments and changes in it, but these carr be under such _regulations as he may prescribe, to 1·eceive fully itemized considered by the committee. nnd verified the clutms and reimburse contractors and their subcon­ The bill requires all corporations engaged in interstate com­ tractors- merce ancl having a capital or assets of $10~000,000 or o1er to And so forth. take out a Federal license, and provides that when the license Mr. FERNALD. Certainly, after the case is presented to him. is issued by the Federal Trade Commission, such corporation :l\Ir. KING. I think ·this measure is too dangerous. I shall shall be presumed to be a legal corporation, and shall have the object to the consideration "Of the .bi11. right to engage in interstate and foreign commerce, unle s the The VICE PRESIDENT. The ·bill will ·be placed on the license is revoked, as provided in the bill. calendar. It further provides for a forfeiture of the license if the corpo­ BILLS AND JOllo."T RESOLUTION IN.TRODlJCED. ration shall enter into any contract, combination, or conspiracy in restraint of trade, "OT shall monopolize commerce or attempt .Bills and a joint _resolution were introduced, read _the :first to monopolize 'it. T.his would .give the commission a supenisory, time, and, by unanimous consent, the second tim-e, nnd re­ jurisdiction over suc11 corporations, and their license woulu be ferred, as .follows : subject to :forfeiture if they engage in a combination to raise or By 1\Ir. .KELLOGG: :.fix ]l.tices, engage in unfair methods of competition for the suke A bill ( S. ·2.755) to }Jro-vide a:n bonornble discharge from ,the of cruShin_g ·out their competitors, or any of the othe· nbuses Unit u Rtate Arm:v (with accompanying :Papers) ,; to .the Oom­ which have been in the past commonly employeu to monopolir.e mittee ·on -Military A..ffair . commerce. 1919. OONGRESSION AL. RECO)lD-SEN ATE. 3749

It may be that $10,000,000 is excessive, and that smaller absolute power to determine whether ot· not a corporation is v'!.>ey­ corporations should be covereu by the bill. It was my view ing the law. This bill is intendeu to create a control similar to at the time I prepared this bilr that the danger of monopoliza­ that exercised under the Sherman Act or the antitrust act. tion of commerce arose with regard to those large corporations Mr. KING. ·will the Senator t>ermit an inquiry? having business all O\er the country capable of exerting their 1\Ir. KELLOGG. If the Senator will permit me to conclude po,ver. my statement first, I shall be glad to answer his question. It is my opinion that prosecution under tl:ie present antitrust It is in the best interest of the country that there should be a net is not n suflicient remedy. There should be a department of free and open field in which to engage in business, and then com­ the Go-vernment ha\ing power of supervision, not necessarily petitors should not be destroyed through unfair methods of interfering with the business of the country, but possessing the competition or oppression by a corporlltion having large capital power to investigate, publish the facts, and take immediate and great power. On the other hand, there mar be cases where action to re\oke a license if a corporation abuses its power. it is in the interest of the public that such a corporation should With this power in the Federal Go-vernment, there will be less purchase its competitors and the corporation should know likelihood of price-fixing agreements. The bill provides, how­ whether it has such right or not. At present no one can tell ever, if the license i forfeited the corporation may protect its and the right to make such a purchase or consolidation can only rights in the courts. I would not give to any executive board of be determined at the end of long litigation under the Sherman the Government the absolute power to bar a corporation from en­ Act. gaging in interstate commerce. On the other hand, under the I yield now to the Senator from Utah. pre ent law, many corporations do not know whether or not they Mr. KING. The question I was about to ask the Senator are lawfully transacting business, or whether they are legally is this: As I understand· the object of the Federal trad_e act, organized. it was to provide machinery something akin to that suggested I do not mean that they do not know when they form an un­ by the Senator from Minnesota. If the Federal Trade Commis­ lawful combination and agree on prices, but as to whether the sion should intelligently exercise the powers that have been com­ corporate combination itself is legal or not lawyers disagree mitted to it, could it not prevent much of the unfair discrimina­ and courts disagree. tion, much of the monopoly, which the bill of the Senator is Lawyers and courts differ on the subject. They should be aimed to prevent? licensed and know whether their business is lawfuL In fact, 1\Ir. KELLOGG. I do not think they have the power. They as this bill provides, they should have the right to apply to the can only prosecute in the courts. After extended litigation or commission and have it uetermined in advance whether any prosecution under the criminal law they may obtain a convic­ proposed action is ·legal. tion, but the business of this country can not be regulated by The bill also regulates the issuance of stock and securities by criminal prosecutions. Some power should exist to speedily such corporations and requires all stock hereafter issued to be remedy a price-fixing agreement. fully covered either in p1;operty or money. 1\Ir. KING. Does the Senator think the Federal Trade Com­ It provides that a corporation having more than 50 per cent mission has utterly failed to justify its creation? of the total business of the same character in the United States Mr. KELLOGG. I do not think it has. shall not purchase the property and business of any other cor­ Mr. STANLEY. l\1r. President, before the Senator takes his poration engaged in a similar and competitive business, unless seat I should like to ask him a question. Under the bill to which the said purchasing corporation shall apply to the commission he has just called the attention of the Senate, in the event the :mel receive the approval thereof. The object of this pro-vision Federal Trade Commission should find that a given corporation is to prevent a large corporation, having more than 50 per cent was either violating the law or was within the law, is that of the business, from using its power to compel its competitors finding reviewable by any court? to sell, and from acquiring a complete monopoly by purchase Mr. KELLOGG. Oh, res. It would have to provide that, of competitive concerns. because I do not think we can deny the corporation its day in This does not prevent a corporation having a natural mo­ court. If the licenses are liable to forfeiture very few corpora­ nopoly by patent enjoying all its business nor does it prevent tions will enter into any price-fixing agreement, in my opinion. a corporation or individual business from growing. It simply The VICE PRESIDENT. The bill will be referred to the preYents them from acquiring power by combination, as in the Committee on Interstate Commerce. past. RETIREMENT OF CIVIL-SERVICE EMPLOYEES. Mr. KING. Mr. President, will the Senator yield? 1\lr. KELLOGG submitted an amendment intended to be pro­ Mr. KELLOGG. I yield to the Senator. posed by him to the bill ( S. 1699) for the retirement of the em­ l\lr. KING. The suggestion which the Senat.;n· makes is very ployees in the classified civil service, and for other purposes, interesting. The thought has occurred to me on a number of which was referred to the Committee on Civil Service and Re­ occasions, and it is reenforced by the attitude of the Senator, trenchment and ordered to be printed. that the entire question might be reached by the invocation of the taxing power. HaYe a graduated tax increasing in its GOVERNMENT IRRIGATION ~ROJECTS. effect so that the larger the corporation and the larger the re­ 1\fr. WALSH of Montana. Mr. President, the hard conditions turns of the corporation, the heavier the tax. Then, if you prevailing throughout the country by reason of the high cost of desire, by a graduated tax, to suppress a corporation that grows living have been aggravated in the State of Montana by reason too large, confiscate all of the returns of the corporation above of the prevalence of the severest drought in the history of our a certain amount, and in that way automatically and without State. I regret to say that recent reports coming to me from the intervention of licenses and the instrumentalities of the Gov­ the Department of Agriculture indicate that the grain crop gen­ ernment and officialdom, any corporation might be crushed and erally in our State is a total failure, or practically so. The dri"Ven out of existence. conditions have induced the governor of our State to call the Mr. KELLOGG. An objection to such a tax would be that legislature in extraorpeace or war. For all of which reasons we urgently recommend the In what respect clid tfiey represent the masses. t'pecdy enactment of the proposed legislation as embodying a. sound What did they srry-, either for or against the subject? and business policy applie~ to a great national pr-oblem. The secretary of the State of Montana is hereby directed' to transmit What was their purpose in advising you? ·was it with a view by wire and in writing copies of this memorial to the President of; the: of giving· you enlightenment, or was it for the· purpose of serving Senate, to the Spealtel~ ot the House of Representatles, to the SeeJ:etacy, some selfiSh motive of their own with the hope of currying favor of the Interim·, and to the Montana Senators a:nd Representatives in Congress. with you?- C. T. S'J$'w ART, Third. You tell me that you studied this for a matter of 9 Secretary of State. or 10 weeks, and on the 23d day of July (Wednesday) you con.­ .31r. 'VALSR of ~:Wntana. ~lr. President, although the resolU­ clud~~d your task" and on the following 1\.ionday these recom... tion uoes· not refer to the fact, the Committee on Irrigation amt mendations were presented to a called meeting of representa­ Reclamation of Ari

Wby do you not suggest that all the manufacturuig and indus­ Government control of these utilities has been so complete. trial plants of the country be purchased with Government funds that it does not differ materially from actual Government owner­ or by the issuance of Government bonds and turned over to their ship, and there is no such radical difference between tlie present operatives in the same way? Government control and operation and that provided for in the Why do you not advise that all the stores be purchased and Plumb plan as to warrant anyone in saying that while the turned over to theh· operatives in the sanie way? former has been a failure the latter will be n success. Why do you not recommend that all the banks of the country From the standpoint of operation every user of the railroads, be acquired by the Government and turned over to their opera­ telegraphs, and telephones knows that the service has been tives? worse than during the private control, excepting only the condi­ Why do you not ask, in the interest of " the masses," that the tion of the railroads during the last two months of private Government purchase all the farms of the country and turn control, which was due to war conditions. them over to the employees on the farms? And let me say a word concerning Government control of And, lastly, may I suggest that if one man should happen to railroads from a financial standpoint. ovm two houses, one of which he rents, why do you not ask that You will remember that the increases in wages .during th~ the second house shall be bought by the Government and turn"ed year 1918 were made retroactive, dating from January 1, 1918. over to the renter? · Freight rates were advanced 25 per cent and passenger rates Where is this going to end? much more, the increases to take effect as of July 1, 1918. My friends, permit me to say the Plumb plan has nothing akin Director General McAdoo, in his testimony before the Com­ to it out ide Bolshevik Russia. mittee on interstate Commerce, said to us that if the increase It is worse than . in rates had been for the entire year there would have been Socialism contemplates the public ownership of property to be a " substantial su.rplus for the year of at least $100,000,000 controlled and opera ted by the public for the public. The Plumb to the Government." And he added, " For the year 1919, with -plan contemplates the public ownership of the railroads for a all wage increases granted in 1918 operating for the entire 12 clas~ . As already stated, they are to be taken over by purchase months, and upon the assumption that the traffic for 1919 is sub­ or condemnation and paid foT with the cash or bonds of the stantially the same as in 1918 and that the cost of fuel and sup­ whole people, and then turned over to the national railway plies remains the same, it is estimated that there should be u operating corporation, whose board of directors shall consist surplus to the Government over and above the standard return of 15 men, 10 of whom shall be railroad classified and official of approximately $100,000,000." employees. As neither class of these employees will have any As I now recall, Dil·ector General Hines gave substantially the stock, theil· interests will be one and the same as against the same assurances early in January of this year. public. In other words, $20,000,000,000 worth of property bought But what was the result? Senator CuMMINS, cha.irman pf the by money belonging to 110,000,000 people is to be turned over to Interstate Commerce Committee, speaking in the Senate on 2,000,000 railroad men, representing, perhaps, including their August 5, said, ''We lost $240,000,000 last year, and we lost in families, lO,OOOtOOO. the first four or five months in this year, 1919, $260,000,000, and Does this seem to be for the benefit of " the masses? " we are now losing at the rate of $39,000,000 a month." Mr. Plumb in his testimony before the Senate Committee on Do you really believe that under the Plumb plan you can turn Interstate Commerce in February assumed that the capital in­ this deficit under Government control either into a surplus for vested amounted to $18,000,000,000 approximately. In his testi­ the account of the Go-vernment or the public or into better serv­ mony last week before the Interstate Commerce Committee of ice for the country? the House he estimated that all the present owners would get I do not believe it can be done except by one increase after for their property is $13,000,000,000. So, according to his own another in transportation rates. testimony~ l\Ir. Plumb's plan, if enacted into law, will substan­ Permit me to make another suggestion: Since Government con- · tially confiscate $5,000,000,000 worth of property belonging to trol was begun the wages to the employees have been increased ~rivate owners. about $1,000,000,000. The Director General, on July 31, 1919, · And how is he to pay for this property eYen at this reduced informed the President that additional increases were demanded value? which would aggregate, if granted, about $800,000,000 more per He tells the public that he will, by his plan, saYe to the year. shippers of the country a large expense, in that these bonds can I have no knowledge as to whether the conditions are such be sold for 4 per cent. as to justify this increase or not, and I express no opinion with The railroads earned during the three years before Govern­ regard to it. I want the railroad men and all laboring men to ment control 5.24 per cent. He does not say who i.~ to buy this be liberally paid, whether lmder public or private control. perhaps $18,000,000,000 or $20,000,000,000 worth of bonds. He But this is only an incident to the larger question to which I has not named the purchasers. want to call your attention. If the conditions are such that thil'.l l\Iay I not remind you that during the last Victory loan, by increase is justified, then I am for it. I await the proof before the best organize<], nation-wide campaign conducted by all the I shall decide it. patriotic men, women, and children of the country, we sold less But when your representatives come to Washington and not than seven billions of bonds at 4-i per cent. And if, when all the only ask this increase but demand that the Congress of the patriotism of the country was back of this campaign, it was United States shall buy these properties at a cost to the Govern­ so difficult to sell these bonds at par for 4i per cent, will Mr. ment of $18,000,000,000 or $20,000,000,000 and tuTn them over to Plumb rise up and tell us where he is going to sen $20,000,000,000 the national railway operating corporation for management and worth of bonds-probably the real value of the roads-at 4 per operation I want to say to you as one American to another it is cent? neUher: fair nor American for them to insinuate re-volution, as Ought you not to tell me how we are going to sell these bonds they have before the Interstate Commerce Committee of the when you ask me to support this proposed legislation? House, unless their demands a.re granted. Does it not occur to you, when not only the whole Nation but And let me suggest that the people a.t large have not expressed the whole world is disturbed, industrially, economically, and auy desire for this plan, but memhers of your brotherhoods-! ·finandally, that we had better wait until normal conditions are do not mean the chiefs-have been in Washington making their !restored before beginning a scheme so revolutionary as that threats as to what would happen unless this legislation iG en­ proposed in the Plumb plan, even if it were sound? acted. As one Senator I shall always be open to conviction, but And what would be the result if it fails? I never yet have yielded to a threat, and I never will. Invoking the principle of brotherhood-a name I iove-do Of course, I know that you do not approve these methods. you not feel you ought to be consistent, and while asking for Law~abiding citizens, real Americans, never do approve them. It this investment of the public funds fo1· your benefit to likewise is only men of the Bolshevik type of mind that ever resort to them~ ask for the benefit of a proportionally equal amount of Govern­ Among the threats that have been made are threats of a ment funds for every other business enterprise in the United nation-wide strike. I do not mean to suggest that the chiefs of States, and turn that over to the employees of those several the brotherhoods have suggested. a n.ation-wide strike, but some enterprises? of the members of the brotherhoods have made these threats here Does not the principle of fraternity suggest this? in Washington to Senators. I am sure that you do not give any And by the time we get through with it there Will be $240,- countenance to strikes under present conditions. 000,000,000 of Government bonds issued and on the market. I believe in the right of the laboring man to use the instrument My friends, this Plumb plan spells ruin for beloved America. of the stTike under proper circumstances, but I do not believe In the past few years a good. many people have urged Federal the oceasion is here or ever has been here or ever will be here owne'rship and control of the railroads, the telegraphs, and the which will justify a nation-wide strike, with all the distress it telephones. In view of recent experiences most of them who Will bring, not only on the public at large but on the strikers and 'have bad no selfish purpose to serve have changed their views. their families. 3752 CONGRESSIONAL RECORD-SENATE. .. A.. UGUST 11,

With a general strike on in this country, tying up all the rail­ find that it iS 1n no respect a complete file, the complete files ·roads, the products of the mine and the farm and the factory remaining with the American Commission. could not be moved to the centers of population and in one week's You a.sk for all drafts or forms presented to or considered time the people of our great cities would be starved, and in win­ by the Peace Commissioners relating to the League of Nations, ter frozen. The people of these centers of population include and particularly the draft or form prepared or presented by the the wives, the children, and the babes of railway men as well Commissioners of the United States. There are no formal as others. It is too shocking a situation to even contemplate. drafts in my possession, except that presented by the American A subcommittee of the Interstate Commerce Committee, of Commissioners, and this I take pleasure in enclosing, along with which I am a member, has been engaged for a number of weeks the formal Report of the Commission on the League of Nations. in preparing a bill providing for the reorganization and regula­ You also ask for -all proceedings, arguments, and debates, tion of the railroads to present to the full committee for its including a transcript of the stenographic reports of the Peace consideration. I hope it will appeal to the sober sense of the Commission relating to or concerning a Leae'Ue of Nations or the public. I can give no assurances as to whether it will be ap­ League of Nations finally adopted, and all data bearing upon or proved or disapproved, but of this I am co:1vinced, that the used in connection with the Treaty of Peace with Germany now American public never will nppro1e the Plumb plan or anything pending. No stenographic reports were taken of the debates akin to it. on the League of Nations, and such memoranda as were taken it The Plumb plan is the most vicious piece of legislation that was agreed should be confidential. The reason for regarding has been presented to Congress since I have been in the Senate. as confidential intimate exchanges of opinion with regard to I would feel that I was contributing to the ruin, not only of many delicate matters will, of course, occur to you, and I beg the transportation system of the country, but to its financial and to say that I am following the example of the representatives of industria2. breakdown, if I voted for it. It would lead not only the other Governments in making this explanation. to the ruin of the whole people but to every railroad man as well. The various data bearing upon or used in connection with the Notwithstanding the statement in your letter to the effect that Treaty of Peace with Germany are so miscellaneous and enor­ this plan was unanimously adopted at a meeting of the repre­ mous in mass that it would be impossible for me to supply them sentatives and delegates to whom it was submitted by you, I without bringing from the whole file of papers of the venture the assertion that when they understand it the vast Commission itself, and would include many memoranda whicl1, majority of them will oppose it. it was agreed on grounds of public policy, it would be unwise to Much has been said by the brotherhood chiefs and their make use of outside the Conference. counsel in the last few days here in Washington about the Very sincerely, yours, democratization of industry, and the Plumb plan is referred to . as the means of democratizing transportation. A careful study Hon. HE -BY CABOT LoDGE, of the bill will show that it is not democracy in transportation Chairman Con~mitt ee on Foreign, .A.ffai1·s, !or which it provides, but autocracy in transportation. United States Senate. Mr. Plumb the other day referred to the Wall Street control o! the railroads. That was true in the past. It is· not true Mr. LODGE. We asked for a large number of documents. now. 'Vall Street has many vicious things to its credit in years For reasons which seemed good to the President we received gone by, but the captains of finance have never demanded only one, which is a printed draft of the American plan for a $20,000,000,000 of the American people's money at one time ! covenant, and with it a report of'the commission on the league The Plumb plan out-Harrimans Harriman in his palmiest of nations~ which contains what is known as the first draft of days! The public does not want to be skinned, but if it must ·the league, which, of course, was printed everywhere in this be skinned it will make little di1Ierence whether it is by \Vall country last March. I ask that those may be printed in the Street or by the methods provided for in the proposed Plumb RECORD together and as a document. plan. Without objection, the matter referred to was ordered to be It was my pleasure in 1916 to support your claims for the printed as a document (S. Doc. No. 70) and to be printed in the Adamson law, because I believed that you were entitled to better REcoRD, as follows : working hours and to better compensation, and so long as I ".AMERICAN DRAFT OF COVENANT OF LEAGUE OF NATIONS. am in public life it will be my pleasure to do whatever can be "PREAMBLE. reasonably done to advance the interests of labor, but bear "In order to secure international peace and security by the in mind that it is not "every one who cries unto me, 'Lord, acceptance of obligations not to resort to the use of armed force, Lord,' shall enter the kingdom of heaven," and it is not every by the prescription of open, just and honorable relations be-­ man who comes around declaiming in favor of labor who is tween nations, by the firm establishment of the understandings labor's friend. of as the actual rule of conduct among gov­ I am sure that a sober second thought will persuade you that ernments, and by the maintenance of justice and a scrupulous this bill ought to be defeated. respect for all treaty obligations in the dealings of organized Sincerely, yours, peoples with one another, and in order to promote international ATLEE POMERENE. cooperation, the Powers signatory to this Covenant adopt this AND LEAGUE OF NATIONS. constitution of the League of Nations. Mr. LODGE. Mr. President, I ask permission of the Senate u.!rticle I. to have printed in the RECORD a letter from the President of the " The action of the Contracting Powers under the terms of the United States addressed to me as chairman of the Committee Covenant shall be effected through the instrumentality of a on Foreign Relations in reply to a resolution of that committee, Bony of Delegates which shall consist of the diplomatic repre­ and I ask to have printed with it the resolution requesting the sentatives of the Contracting Powers accredited to X. and the President to send in certain papers. The resolution and the Minister of Foreign Affairs of X. The meetings of the Body of President's letter are self-explanatory. I will not ask to have Delegates shall be held at the seat of government of X. and the them read now, but simply printed in the RECORD. Minister for Foreign Affairs of X. shall be the presiding officer. There being no objection, the resolution and letter of the " Whenever the Delegates deem it necessary or advisable, they President were ordered to be printed in the REcoRD, as follows: may meet temporarily at the seat of government of Y. or of Z., "Resol-ved, That the Committee on Foreign Relations re­ in which case the diplomatic representative to X. of the country spectfully requests the President, if not incompatible with the in which the meeting is held shall be the presiding. officer pro public interest, to transmit the following to the committee: tempore. " 1. All drafts or forms presented to or considered by the " It shall be the privilege of any of the Contracting Powers to peace commissioners relating to a league of nations, and particu­ assist its representative in the Body of Delegates by any method larly the draft or form prepared or presented by the commis­ of conference, counsel, or advice that may seem best to it, and sioners of the United States; also to be represented at any time by a special representatiYe. "2. All proceedings, arguments, and debates, including the u.!rticle II. transcript of the stenographic reports of the peace commission "The Body of Delegates shall regulate their own procedure relating to or concerning a league of nations, or the league of and shall have power to appoint such committees as they may nations finally adopted; and all data bearing upon or used in deem necessary to inquire into and report upon any matters connection with the treaty of peace with Germany now pending." that lie within the field of their action. "It shall be the right of the Body of Delegates, upon the THE 'VHITE HOUSE, initiative of any member, to discuss, either publicly or privately Washington, 8 ·August, 1919. as it may deem best, any ma tier lying within the field of action My DEAR 1\fR. CH.A.mMAN: I have at last been able to go of the League of Nations as defined in this Covenant, or any personally over the great mass of papers which remained in my matter likely to affect the peace of the world ; but an actions • hands at the close of my stay in Paris, and am disappoi!..~ :U to of the Body of Delegates taken in the exerci ~e of the funclious 1919. CONGRESSIONAL RECORTI-·SENATE. 3753 and powers granted to tllem under this Covenant ·shall be fo.rmu­ cllosen :by the eo..ntending -parties. In case the arbitrators lated and agreed upon by an Executive Council, which ·shall uct Chosen by the contending pa:rties cannot agree upon an additional either by creference or upon its own initiative and which shall arbitrator or ·arbitrato.I:S, rtbe.oadditional arbitrator or arbitrators con ~ ist of the representatives of the Great Powers, together-with shall be chosen by the Executive Couneil. representati\es drawn in annual rotation frem two panels, ~ne "On the am;>eal of a party to the dispute the decision of said of which shall be made up of the Tepresentatives of the States arbitrators may be set aside by a vote of three-fourths of the ranking next after the Great Powers nnd the others of the Del-egates, in -case the -decision of the arbitrators was unanimous, I representatives of the minor States (a classification which the .or l>y a v:ote -ef two-thirds -of th-e Delegates in case the decision Body of Delegates shall itself establish and may from time to .of the arbi'tl·ators was not unanimous, but unless thus set aside time alter), such a number being drawn from these panels as shall ~ be :finally binding and conclusive. will be but one less than the representatives of the Great " ·when -any decision -of arbitrators shall have been thus set Powers; and three or more negative votes in the Council sllall aside, the dispute shall again be submitted to arbitrators chosen operate as a veto upon any action or resolution proposed. as heretofore provided, none of whom ·shall, however, have "All re olutions ·passed or actions taken by the Body ·of Dele­ previously acted as arbitrators in the dispute in question, and gates or by the Executive Council, except those adopted in execu­ the -decision of the arbitrators rendered in this second arbitra­ tion of any specific powers herein ·granted, shall have the effect tion shall be finally binding and conclusive without right ·of ap­ of recommendations to the several governments of the League. peal. "The Executi\e Council shall appoint·a permanent ·Secretariat " If for any l"eason it should prove impracticable to refer any and taff and may appoint joint committees, chosen from the matter in dispute to arbitration, the -parties to the .dispute -sllall Body of Delegates or consisting of other specially qualified apply to the ExecutiYe Council to take the matter under con­ persons, for the -study and systematic consideration of the "inter­ sideration for such mediatory action or recommendation as it national questions with which the Council may have to deal, or may deem wise in·the circumstances. The Council shall imme­ of que ·tions likely te 1ead to international comPlications or dis­ diately .accept the xeference and give notice to the _parties, and put-es. The Ex:ecuti\e Council shan also talre ·ifue Decessary Shall mal{e tile necessary arrangements for a full hearing, in­ steps to establish and maintain proper liaison both with the vestL,o-ation and ,.consideration. The Council shall ascertain an"'a foreign offices of thE' Contracting Power-s and with any govern­ as soon as 110ssible make .JlUblic all the facts involved in the ment or agencies which ,may be acting as mandataries of the dispute and shall make ·such .recommendation as iit .may deem League in any pa.rt of the world. wise and practicable based on the merits ()f the controversy "Article TTl. a11d calculated to secm·e a just and lasting settlement. Other members of the J...f;ague shall _place at the Clisposal of :the Execu­ "The Contracting Powers undertake to respect and to protect ti\e Council any and all information that may oe Jn their J>Os­ as -against external aggression the political inde_pendence and session which in any way bears upon the facts or .merits of the territorial integrity of all States members of the ~League. contceversy; and the Executi\e Council sba.ll do -everything in • ((Article .IV. its .:power by way of mediation or conciliation to bring ·about a " The Contracting Powers reco~e the principle that the peaeeful settlement. The xecommendation of the Exe.cutiTe mrrinten11nce of peace will require the.reduction of national arnlU­ Co.uneil slurll be addre sed to the disputants. Sh:Ould .the .Execu­ meuts to -the 'lowest ·point consistent with domestic -safety and tive Council fail to arrive at any conclusion, it shall be the privi~ the enforcement by ·common .action of international obligations; lege of the members ·Of the .Executive Council to publish their ami the Executive reaki:ng State, :and the prevention, they will in no case resort to armed force without previously so far as possible, ·of all .financial, commercial, o1· :personal -inter­ submitting the questions and matters involved either to arbitra­ course between the nationals of the coTenant-breaking State and tion or to inquiry by the Executive Council and until there has the nationals of any other State, whether a member of the League been an award "by the arbitrators or a recommendation by the or not. Executive Council; and that they will not even then resort to "It shall be the duty of the Executive Council in such a case to armed force as against a member of the League of Nations who recommend w.hat effective military or naval l:orce the members complies with the award of the arbitrators or the recommenda­ of the League sh:nll .severally contribute, and to advise, if it tion of the Executive Council. should think best, that the smaller members of the League be " The Contracting Powers agree that whenever any dispute excused from making any contribution to the :armed .:forc.es to or difficulty shall arise between or among them with regard to be used against the covenant-breaking State. any question of the law of nations, with regard to the interpre­ " The eovenant-..breaking :State shall, after the restoration of tation of a treaty, as to any fact w.hich would, if established, peace, be subject to the regulations with regard to a peace constitute a breach of international obligation, or as to any establishment provided for new States under the terms supple­ ulleged damage and the nature and measure of the reparation mentary Article IV. to be made therefor, if such dispute or difficulty cannot be satis­ uAt-ticle "VJI. factorily settled by the ordinary processes of negotiation, to " If any Contracting _Fower shilll be found by the League to submit the whole subject matter to arbitration and to carry out have ueelaTed war or to ha-ve begun hostilities or to haYe taken in full good faith any award or decision that may be rendered. any .hostile step short of war, against .anotheT Contracting Power "In case of arbitration, the matter or matters at issue shall before submitting the dispute involved to arbitrators or con­ be Teferred to arbitrators, one of whom shall be selected by each siderrrtion by ·the Executive Council as herein provided, or to of the parties to the dispute from outside their own nationals, have declared war or to have begun hostilities or to have taken when there are but two snch parties, and a third by the two thus any· hostile step short of war, in regard to any dispute which selectea. When there are more tnan two .Parties to the d~nte, has been decided adversely to it by arbitrators the Contracting one arbitrator shall be named by each of the several parties Powers hereby engage not only to cease all commerce a.nd inter­ and the arbitrators thus named shall add to their number others ~ course with that Power but also to unite in bloekading and of their own choice, the number thus added to be limited to the closing the -frontieTs of that Power to commerce or intercourse number which will suffice ·to gi\e a de.ciding_ vote to the arbitra­ with any part of the world and to use any foi·ce ·which may be tors thus added in m ~·e of n lliYision among the arbitrators agreed upon to accomplish that o!Jject. 3754 CONGRESSIONAL RECORD-SEN ATE. I AuousT 11,

({Article VIII. se which are inconsistent with the terms hereof, and solemnly ".A:ny ~:a r or threat of war, whether immediately affecting engage that they will not enter into any engagements incon­ any of the Contracting Powers or not, is hereby declared a mat­ sistent with the terms he·reof. ter of concern of the League mid to all the Contracting Powers, "~n case any of the Powers signatory hereto or subsequently and the Contracting Powers hereby reserve ·the right to take adnntted to the League shall, before becoming a party to this any action that may be deemed wise and effectual to safeguard Covenant, have undertaken any treaty obligations which are the peace of nations. \ inconsistent with the terms of this Covenan.t, it shall be the duty " It is hereby also

' .. "IV. (United States ot America, Bt·itish Empi1·e, France, Italy and "No new State shall be recognized by the League or admitted 1 Ja.pan), and five members to represent all the Powers with into its membership except on condition · that its military and special interests. · At a meeting of these latter Powers on the naval forces and armaments shall conform to standards pre­ 27th January, 1919, Belgium, Brazil, China, Portugal and Serbia scribed by the League in respect of it from time to time. were chosen to designate one tepresentative each. (See Annex "V. 6 of Protocol No. 2.) " The Cont~·acting Powers will work to establish and maintain "2. CONSTITUTION OF THE COM.UISSION: fair hours and humane conditions of labor for all those within 41 The Commission was therefore originally composed as fol­ their several j11risdictions and they will exe~t their influence in lows: favor of the adoption and maintenance of a similar policy and "For the United States of America: like safeguards where\er their industrial and commercial rela­ "The President of the United States of America. tions extend. Also they will appoint Commissions· to study " Honorable Edward M. House. conditions of industry and labor in their international aspects " For the British Etnpire: and to make recommendations thereon, including the extension· "The Rt. Hon. the Lord Robert Cecil, K. C., M. P. and improYefi:lent o! existing conventions. " Lieutenant-General the Rt. Hon. J. C. Smuts, K. C., Minis­ "VI. ter of Defence of the Union of South Africa. " The League shall require all new States to bind themselves " For France : as a condition precedent to their recognition as independent or "::Ur. Leon Bourgeois, former President of the Council of autonomous States and the E:x:ecntive Council shall exact of all Ministers and Minister for Foreign Affairs. States seeking admission to the League, the promise to accord ":Air. Larnaude, Dean of the Faculty of Law of Paris. to all racial or national minorities within their several jUris­ "For Italy: dictions exactly the same treatment and security, both in law " Mr. Orlando, President of the Council. imd in fact, that is accorded the racial or national majority of " Mr. Scialoja, Senator of the Kingdom. their people. " For .Japan: . "VII. " Baron Makino, former Minister for Foreign Affairs, 1\Iem· " Recognizing religious persecution ann intolerance as fertile ber of the Diplomatic Council. soui·ces of war, the Contractillg Powers agree, and the LeagUe " Viscount Chinda, Ambassador Extraordinary and Minister shaH exact from all new States and all States seeking admis­ flenipotentiary of H. I. .M. the Emperor of Japan at sion to it the promise that they will make no law prohibiting London. or interfering with the free exercise of religion, and that they " For Belgium: will in no way discriminate, either in law or in fact, against " Mr. Hymans, Minister for Foreign Affairs and Minister of those who practice any particular creed, · religion, or ' belief State. whose practices are not inconsistent with public order or public " For Brazil : morals. " M:r. Epitacio Pessoa, Senator, former Minister of Justice. "VIII. "For China: "When the rights of belligerents on the high seas outside "Mr. V. K. Wellington Koo, Envoy Extraordinary and Min­ territorial waters shall have been defined by international ister Plenipotentiary of China at Washington. convention, it is hereby agreed and declared as a fundamental " For Portugal: Covenant that no Power or combination of Powers shall have "Mr. Jayroe Batalha-Reis, Envoy Extraordinary and Min­ a right to overstep in any particular the clear meaning of the ister Plenipotentiary of Portu~al at Petrograd. definitions thus established; but that it shall be the right of the " For Serbia : League from time to time and on special occasion to close the "Mr. Vesnitch, Envoy Extraordinary and Minister Plenipo­ seas in whole or in part against a particular Power or Powers tentiary of H. M:. the King of Serbia at Paris. for the p~rpose of enforcing the international Covenants here "A request of four other Powers--Greece, Poland, Roumania entered into. and the Czecho-Slovak Republic-to be represented on the Com­ "IX. mission was referred by the Conference to · the Commission for " It is .hereby covenanted and agreed by the Contracting Pow­ consideration. Upon the recommendation of the Commission the ers that no treaty ent~red into by them shall be regarded as four following members took their seats on February 6th: valid, binding, or operative until it s?all have been published " For Greece: and made known to all the other States members of the League. "Mr. Eleftherios Veniselos, President of the Council of Min- "X. isters. · - " It is further covenanted and agreed by the Contracting " For Poland : Powers that in their fiscal and economic regulations and policy "Mr. Roman Dmowski, President of the Polish National no discrimination shall be made between one nation and another Committee: among those with which they h~ve commercial and financial " For Roumania : _ dealings. "Mr. Diamandy, Roumanian Minister Plenipotentiary. "REPORT OF THE COMMISSION ON THE LEAGUE OF NATIONS. " For the Czecho-Slovak Republic: [Preliminary .] "Mr. Charles Kramar, President of the Council of Ministers. "1. TERMS OF REFERENCE. "3. FIRST llEPOllT OF THEI COMMISSION. 41 The Preliminary Peace Conference at the plenary session of " Between the date of its appointment and the 14th February, the 25th January 1919 (Protocol No. 2) decided to nominate a the Commission met ten times. As a result of these meetings Commission to work out in detail tile Constitution and functions the following draft Covenant of the League of Nations was of a League of Nations. adopted, and read as a preliminary report by the Chairman at a " The terms of reference of this Commission were as follows : plenary session of the Conference on the latter elate (Protocol 41 ' The Conference, having considered the proposals for the No.3): creation of a League of Nations, resolved that- " I PREAMBLE. "' 1. It is essential to the maintenance of t he world settle­ "'In order to promote international co-operation and to secure ment, which the Associated Nations are now met to establish, international peace and security by the acceptance of obligations that a League of Nations be created to promote international not to resort to war, by the prescription of open, just and honor­ co-operation, to ensure the fulfillment of accepted international able relations between nations, by the firm establishment of the obligations and to provide safeguards against war. understandings of international law as the actual rule of con­ " ' 2. This League should be treated as an integral part of duct among governments, and by t4e maintenance of justice and the general Treaty of Peace, and should be open to every civil­ a scrupulous respect for all treaty obligations in the dealings of ised nation which can be relied on to promote its objects. organized peoples with one another, the Powers signatory to this " ' 3. The members of the League should periodically meet in Covenant adopt this constitution of the League of Nations. international conference, and should have a permanent organi­ zation and secretariat to carry on the business of the League in " '.t1.1·ticle I. the intervals between the conferences. "'The action of the High Contracting Parties under the terms "'The Conference therefore appoints a Committee represen­ of this Covenant shall be effected through the instrumentality tative of the Associated Governments to work out the details of of meetings of a Body of Delegates representing the High Con~ the constitution and functions of the League.' tracting Parties, of meetings at more frequent intervals of an " This Commission was to be composed of fifteen members, Executive Council, and of a permanent international Secretariat i. e. two members representing each of· the Great' Powers to be established at the Seat of the League. LVIII--237 3756· CONGRESSIONAL RECORD-SENATE: .AUGUST 11,

~''Article II. when adopted, shall not be exceeded without the permission of 4 ' 'Meetings -of the Body of Del~gates shall be held at stated the Executive Council. intervals and from time to time as occasion may require for the "' The High Contracting Parties agree that the manufacture pm·pos'e of dealing with matters within the sphere of action of by private enterprise of munitions and implements of war lends the League. Meetings of the Body of Delegates shall be beld at itself to grave objections, and direct the Executive Council to the Seat of the League or at such other place as may be found advise how the evil effects attendant upon such manufacture convenient and shan consist of representatives of the High Con­ can be prevented,

1 alone. The 'vishes of these communities must be a principal " Should any of the High Contracting Parties break or disre­ consideration in the selection ot the mandatory power. gard its covenants under Article ·xn, it shall thereby ipso facto 11 ' Other peoples, especially those of Central Africa, are at be deemed to have committed an act of war against all the other such a stage that the mandatary must be responsible for the ad­ member~'; of the Lea..,aue, which hereby undertake immediately to ministration of the territory subject to conditions which will subject it to the severance of all trade or financial relations, guarantee freedom of conscience or religion, subject only to the the prohibition of all intercourse between their nationals and maintenance of public order and morals, the prohibition of the nationals of the covenant-breaking State, ancl the preven· abuses such as the slave trade, the arms traffic and the liquor tion of all financial, commercial, or personal intercourse be­ traffic, and the prevention of the establishment of fortifications tween the nationals of the covenant-breaking State and the or military and naval bases and of military training of the nationals of any other State, whether a member of the League natiYes for other than police purposes and the defense of terri­ or not. tory, and will also secure equal opportunities for the trade and " ' It shall be the duty of the Executive Council in such ca~ commerce of other members of the League. to recommend what efl'ective military or navnl force the mem­ 1 " There are teLTitories, such as South-west Africa and cer­ bers of the League shall severally contribute to the armed forces tain of the South Pacific Islands, whiCh, owing to the sparseness to be used to protect the covenants of the League. 11 of their population, cr their small size, or their remoteness from 'The High Contracting Parties agree, further, that they will the centers of civilization, or their geographical contiguity to mutually support one another in the financial and economic the mandatory state, and other circumstances, can be best ad· measures which are taken under this Article, in order to min­ ministered under the laws of the mandatory state as intecrral imize the loss and inconvenience resulting from the above portions thereof, subject to the safeguards aboYe-mentionetl in measures, and that they will mutually support one another in the interests of the indigenous population. resisting any special measures aimed at one of their number by 1 " In every case of mandate, the mandatory state shall render the covenant-breaking State, and that they will afford passage to the League an annual report in reference to the territory through their territory to the forces of any of the IDgh Con­ committed to its charge. tracting Parties who are co-operating to protect the covenants of 11 1 The degree of authority, control, or administration to be the Lea~e. exercised by the mandatory State shall if not prenously agreed '' 'Arttcle XVII. upon by the High Contracting Parties in each case be explicitely 1 " In the event of disputes b~tween one State member of the defined by the Executive Council in a special Act or Charter. League and another State which is not a member of the League, " ' The High Contracting Parties further agree to establish at or between States not members of the League, the IDgh Con­ the seat of the League a Mandatory Commission to receive and tracting Parties agree that the State or States not members of examine the annual reports of the Mandatory Powers, and to the League shall be invited to accept the obligations of member­ assist the League in ensuring the observance of the terms of all ship in the League for the purposes of such dispute, upon such Mandates. conditions as the Executive Council may deem just, and upon u 'Article XX. acceptance of any such invitation, the above provisions shall be "'The High Contracting Parties will endeavor to secure and applied with such modifications as may be deemed necessary maintain fair and humane conditions of labor for men, women by the League. and children both in their own countries and in all countries 1 " Upon such invitation being given, the Executive Council to which their commercial and industrial relations extend; and shall immediately institute an inquiry into the circumstances to that end agree to establish as part of the organization of the and merits of the di~pute and recommend such action as may League a permanent Bureau of Labor. seem best and most effectual in the circumstances. "'Article XXI. "'In the event of a Power so invited refusing to accept the obligations of membership in the League for the purposes of such 11 'The High Contracting Parties agree that provision shall be dispute, and taking any action against a State member of the made through the instrumentality of the League to secure and League which in the case of a State member of the League maintain freedom of transit and equitable. treatment for the would constitute a breach of Article XII, the provisions of commerce of all States members of the League, having in mind, Article XVI shall be applicable as against the State taking such among other things, special arrangements with regard to the action. - necessities of the regions devastated during the war of 1914- "'If both parties to the dispute when so invited refuse to 1918. accept the obligations of membership in the League for the " 'At·Ucle XXII. purposes of such dispute, the Executive Council may take such " ' The High Contracting Parties agree to place under the action and make such recommendatio,ns as will prevent hostili­ control of the League all international ·bureaux already estab­ ties and will result in the settlement of the dispute. lished by general treaties if the parties to such treaties consent. 3758 AUGUST ll,

Furthermore, they ag1·ec that all such international bureaux: to u 'A.1·ticle II. be. constituted in future shall be placed under the control of' the 11 ''The action ot the_ League under t,his Covenant shall be League. 1 effected through the instrumentality of an Assembly and of a " 'A1·ticlo XXIII.. G011ncil, with a permanent Secretariat. "'The High Contracting Parties agree that every treaty or-,, utArticle III. international engagement entered. into hereafter by any State member of the League, shall be forthwith registered with the " ·' '11he A-ssembly shall consist of Re_Qresentatives of the Mem- Secretary-General and as soon as possible published by Wm, bers-of the- League. and that no such treaty or international engagement shall be 1 "'Tile A.ssembly shall meet. at. stated intervals and from time binding: until so registe ·ed. to time as occasion may requite at th_e Seat of the League, or at 1 ' such other place as may be decided upon. r u (Article XXIV. , " ' The Assembly may deal at its meetings with any matter "'It shall be the l'ight of the Body of Delegates n·om time to within the sphere of action. or the League or affecting the peace time to' advise the recons-ideration by. States members ot the of; the world. League, of treaties which have become inapplicable, and of· " 'At meetings of- the AssemlHy each Member of the League international conditions, of which the continuance UlaY en­ ·shall have one \"ote, and may have not more than three Repre­ dang-er the peace of the world. sentatives. u t.tl:t-ticle I V . u tArticle XXV. "'The High Conh·acting Parties severally agree that the. " 'The Council-shall consist of. Representatives of the United present Covenant is accepted as abrogating all obligations inter States of America, of the British Empire, of France, of Italy, and se which are inconsistent with the te:L·ms thereof, and solemnly of Japan, together with Representatives-of four other Members of the League. These four Members of the League shall be engage that they will not he1~eafter enter into any engagements inconsistent with. the terms thereof. selected by the Assembly fl'Om time to- time in its discretion. " ' In case any of the Powers signatory hereto or subsequently ·Until. the appointment of the Representatives of the four l\1em­ admitted to the League shall, before becoming a party to this b.e.rs-of the League-first selected by the Assembly, Representa- Cm·enant, ha•e undertaken any obligations which are incon­ tives of shall be members of the Council. sistent with the terms of this Co\enant, it shall, be the duty of "'With the- approval of the majority of the Assembly, the such Power to take immediate steps to- procure its release from Council may name additional ~ Members of the League whose Rep~ such obligation.s. . resentatives shall always be members of the Council· the Couu­ u t Article XXVI. cil with like approval may incr·ease the number of ifembers of the League to be selected by. the As embly for representation on "'Amendments- to this. Covenant will take effe t when ratified· the Council. by the States whose representatives· compose the Executi>e " '_The Council shall meet fl':Om time to time as occasion may Council and by three-fourths of. the States. whose representutives requu.'e, and at least once a ;rear, at the· Seat of the League, or at compose the Body of Delegates.' such· othe£ place as may be decided unon. "4. SUBSEQUENT MEETINGS OF. TilE COMMISSION. " 'The Council may deal at its meetings with anv matter " The draft Covenant of· the 14th February was made public irr within the phere-of action of tile League or affecting the peace order that discussiDn of its terms might be provoked. A great or·the world. -

•• 'The buildings r~ ud other property occupied by the League they will not resort to war against a l\Iember of the Lengue or its officials or by Representatives attending its meetings which complies therewith. In the event of any failure to carry shall be inviolubl'e. out such an a"''U.:rd, the Council shall propo e 'vhat steps should "'Article VIII. be taken to give effect thereto. " 'The 1\fembers of the League recognize that the maintenance .. 'Article XIV. of peace requires the reductiQn of national armaments to the " 'The Council shall fornrnlate and submit to the 1\Iembers lowest point consistent with national safety and the enforce- of the League for adoption plans for the establishment of a ment by common action of international obligations. Permanent Court of International Justice. The Court shall be " • The Council, taking account of the geographical situation competent to hear and determine any dispute of an interna­ and circumstances of each State, shall formulate plans for such tional character which the parties thereto submit to it. The reduction for the consideration and action of the several Govern- Court may also give an advisory opinion upon any dispute or ments. question referred to it by the Council or by the Assembly. " ' Such plans shall be subject to reconsideration and revision " 'Article xv. at least every ten years. " ' If there should arise between l\lembers of the League any "'After these plans shall have been adopted by the several dispute likely to lead to a rupture, which is not submitted to arbi­ Governments, the limits of armaments therein fixed shall not tration as above, the Members of the League agree that they will be exceeded without the concurrence of the Council. submit the matter to the Council. Any party to the dispute may "'The Members of the League agree that the manufacture effect such submission by giving notice of the existence of the by private enterprise of munitions and implements of war is dispute to the Secretary General, who will make all necessary open to gra\e ObJections. The Council shall advise how the arrangements for a full investigation and consideration thereof. evil effects attendant upon such manufacture can be prevented, "'For this purpose the parties to the dispute will communi­ due regard being had to the necessities of those Members of cate to the Secretary General~ as promptly as possible, state­ the League which are not able to manufacture the munitions ments of their case with all the relevant facts and papers, and and implements of war necessary for their safety. the Council may forthwith direct the publication thereof. "'The Members of the League undertake to interchange full "'The Council shall endeavor to effect a settlement of the and frank information as to the scale of their armaments, their dispute, and if such efforts are successful, a statement shall be military and naval programmes and the condition of such of made public giving such facts :md explanations regarding the their industries as are adaptable to war-like purposes. dispute and the terms of settlement thereof as the Council may "'Article IX. deem appropriate. " 'A. permanent Commission shall be constituted to advise the " ' If the dispute is not thus settled, the Council either unani- 'Council on the execution of the provisions of Articles I and VIII mously or by a majority vote shall make and publish a report and on military and naval questions generally. containing a statement of the facts of the dispute and the l'ec- " 'A.r·ticlc x. ommendations which are deemed just and proper in regard " ' The Members of the League undertake to respect and pre- thereto. serve as against external aggression the territorial integrity " 'Any Member of the League represented on the Council may and existing political independence of all Members of the make public a statement of the facts of the dispute and of its League. In case of any such aggression or in case of any conclusions regarding the same. threat or danger of such aggression the Council shall advise •• ' If a report by the Council is unanimously agreed to by the upon the means by which this obligation shall be fulfilled. members thereof other than the Representatives of one or mo.1·e of the parties to the dispute, the Members of the League agree "'Article XI. that they will not go to war with any party to the dispute which "'Any war or threat of war, whether immediately affecting complies with the recommendations of the report. any of the l\lembers of the League or not, is hereby declared a " ' If the Council fails to reach a report which is unanimously matter of concern to the whole League, and the League shall agreed to by the Members thereof, other than the representa­ take any action that may be deemed wise and effectual to safe­ tives of one or more of tl:re parties to the dispute, the Members guard the peace of nations. In case any such emergency should of the League reserve to themsel\es _the right to take such ac­ arise the Secretary General shall on the request of any Member tion as they shall consider n~cessary for the maintenance of of the League forth\vith summon a meeting of the Council. right and justice. " • It is also declared to be the friendly right of each Mem­ " ' If the dispute between the parties is claimed by one of ber of the League to bring to the attention of the Assembly or them, and is found by the Council, to arise out of a matter of the Council any circumstance whatever affecting interna­ which by international law is solely within the domestic juris­ tional relations which threatens to disturb international peace diction of that party, the Council shall so report, and shall make or the good understanding betwaen nations upon which peace no recommendation as to its settlement. depends. " ' The Council may in any case under this Article refer the " 'Article XII. dispute to the Assembly. The dispute shall be so referred at "'The l\lembers of the League agree that if there should the request of either party to the disl>"ute, provided that such re­ arise between them any dispute likely to lead to a rupture. quest be made within fourteen days after the submission of the they will submit tl:).e matter either to arbitTation or to ing.u.iry dispute to the Council. by the Council, and they agree in no case to resort to war " ' In any case referred to the Assembly all the provlsiollS of 1mtil three months after the award by the arbitrators o1· the this Article and of Article XII relating to the action and pow­ report by the Council. ers of the Council shall apply to the action and powers of the "'In any case under this Article the award of the arbitrators Assembly, provided that a report made by the Assembly if con­ shall be made within a reasonable time, and the report of the cmTed in by the Representatives of those Members of the Council shall be made within six months after the submission of League represented on the Council and of a majority of the other the dispute. Members of the League, exclusive in each case of the Repre­ " 'Article XIII. sentatives of the parties to the dispute, shall have the same "'The 1\Iembers of the League agree that whene,er any dis­ force as a report by the Counctl concurred in by all the mem­ pute shall arise between them which they recognize to be suit­ bers thereof other than the Representati\es of one or more of able for submission to arbitration and which cannot be satis­ the parties to the dispute. factorily settled by diplomacy, they will submit the whole sub­ "'Article XVI. ject matter to arbitration. '' ' Should any l\lember of the League resort to war in disre­

"'Disputes as to the interpretation of a treaty, as to any gard of its covenants under Articles XII 1 XIII or XV, it shall question of international law, as to the existence of any fact ipso facto be deemed to have committed an act of war against which if established would constitute a breach of any inter­ all other Members of the League, which hereby undertake 1m­ national obligation, or as to the extent and nature of the repara­ mediately to subject.it to the severance of all trade or financial tion to be made for any such brea.ch, are declared to be among relations, the prohibition of all intercourse between their na­ those which are generally suitable for submission to arbitra­ tionals and the nationals of the cOTenant-breaking State, and tion. the prevention of all financial, commercial, or personal inter­ "'For the consideration of any such dispute the court of course between the nationals of the covenant-breaking State arbitration to which the case is referred shall be the com·t and the nationals of any other State, whether a Member of the agreed on by the parties to the dispute or stipulated ili any League or not. convention existing between them. " ' It shall be the duty e:f the Council in such case to I'ecom­ " ' The Members of the League agree that they will carry out mend to the several Governments concerned what effective in full good faith any award that may be rendered and that military or naval force the Members of the League shall sev- 3760 CONGRESSIONAL RECORD--SENATE . . .A.. UGUST 11, erally contribute to the aTmed forces to be used to protect the tutelage should be exercised by them as Mandataries on behalf coveuants of the League. of the League. "'The Members of the League agree, further, that they will " ' The character of the mandate must differ according to the mutually support one another in the financial and economic stage of the development of the people, the geographical situa­ measures which are taken under this Article, in. order to mini­ tion of the territory, its economic conditions and other similar mize the loss and inconvenience resulting from the above meas­ circumstances. ures, and that they will mutually support one another in re­ " ~Certain communities formerly belonging to the Turkish sisting any special measures aimed nt one of their number by Empire have reached a stage of development where their exist­ the covenant-breaking State, and that they will take the neces­ ence as independent nations can be provisionally recognized sub­ sary steps to afford passage through their territory to the ject to the rendering of administrative advice and assistance by forces of any of the Members of the League which are co­ a Mandatary until such time as they are able to stand alone. operating to protect the covenants of the League. The wishes of these communities must be a principal considera­ "'Any Member of the League which has violated any cove­ tion in the selection of the Mandatary. nant of the League may be declared to be no longer a Member "'Other peoples, ~specially those of Central Africa, are at of the League by a vote of the Council concurred in by the Rep­ such a stage that the Mandatary must be responsible for the resentatives of all the other Members of the League represented administration of the territory under conditions which will thereon. guarantee freedom of conscience or religion, subject only to the '' 'At·ticle XVII. maintenance of public order and morals, the prohibition of " 'In the event of a dispute between a Member of the .League abuses such as the slave trade, the arms traffic and the liquor and a State which is not a Member of the League, or between traffic, and the prevention of the establishment of fortifications States not Members of the League, the State or States not or military and naval bases and of military training of the Members of the League shall be invited to accept the obliga­ natives for other than police purposes and the defence of terri­ tions of membership in the League for the purposes of such dis­ tory, and will also secure equal opportunities for the trade and pute, upon such conditions as the Council may deem just. If commerce of other Members of the League. such invitation is accepted, the provisions of Articles XII to " ' There are. territories, such as South-we t Africa a.nd cer­ XVI inclusive shall be applied with such modifications as may tain of the South Pacific Islands, which, owing to the sparse­ be deemed necessary by the council. ness of their population, or their small size, or their remote­ "'Upon such invitation being given the Council shall immedi­ ness from the centers of civilization, or their geographical con­ ately institute an inquiry into the circumstances of the dispute tiguity to the territory o:!: the Mandatary, and other circum­ and recommend such action as may seem best and most effectual stances, can be best administered under the laws of the Manda­ in the circumstances. tary as integral portions of its territory, subject to the safe­ "'If a State so invited shall refuse to accept the obligations guards above-mentioned in the interests of the indigenous popu­ of membership in the League for the purposes of such dispute, lation. and shall resort to war against a Member of the League, the "'In every case of mandate, the l\Iandatary shall render to provisions of Article A.""VI shall be applicable as against the the Council an annual report in reference to the territory com­ State taking such action. mitted to its charge. "'If both parties to the dispute when so invited refuse to ac­ "'The degree of authority, control, or administration to be cept the obligations of membership in the League for the pur­ exercised by the Mandatary shall if not previously agreed upon poses of such dispute, the Council may take such measures and by the Members of the League be explicitJy defined in each case make such recommendations as will prevent hostilities and will by the Council. result in the settlement of the dispute. "'A permanent Commission shall be con ·tituted to receive .-.-'Article XVIII. and examine the annual reports of the Mandataries aud to advise the Council on all matters relating to the obsen·ance of " 'Every treaty or international engagement entered into the mandates. hereafter by any Member of the League, shall be forthwith reg­ u 'A1·ticZe XXIII. istered with the Secretariat and shall as soon as possible be published by it. No such treaty or international engagement "' Subject to and in accordanc~ with the provisions of inter­ shall be binding until so registered. national conventions existing or hereafter to be agreed upon, the Members of the League u 'Article XIX. "'(a) will endeavor to secure and maintain fair and humane " ' The Assembly may from time to time advise the reconsid­ conditions of labor for men, women and children both in their eration by Members of the League of treaties which have be­ own countries and in all countries to which their commercial come inapplicable and the consideration of international condi­ and industrial relations extend, and for that purpose will estab­ tions whose continuance might endanger the peace of the world. lish and maintain the necessary international organizations; "'Article XX. "'(b) undertake to secure just treatment of the native in­ "'The Members of the League severally agree that this Cove­ habitants of territor:ies under their control; nant is accepted as abrogating all obligations or understandings " ' (c) will entrust the League with the general supervi -·ion inte1· se which are inconsistent with the terms thereof, and oyer the execution of agreements with regard to the traffic in solemnly undertake that they will not hereafter enter into any women and children, and th,e traffic in opium and other danger­ engagements inconsistent with the terms thereof. ous drugs; " ' In case any Member of the League shall, before becoming a "'(d) will entrust the Leagu~ with the general supervision Member of the League, have undertaken any obligations incon­ of the trade in arms and ammunition with the countries in sistent with the terms of this Covenant, it shall be the duty of which the control of this traffic is necessary in the common such Member to take immediate steps to procure its release from interest; . such obligations. " ' (e) will make provision to secure and maintain freetlorn of "'Article XXI. communications and of tran it and equitable treatment for the "'Nothing in tltis Covenant shall be deemed to affect the commerce of all Members of the League. In this connection, validity of international engagements such as treaties of arbi­ the special necessities of the regions de\astated during the war tration or regional understandings like the Monroe Doctrine for of 1914-1918 shall be borne in mind; securing the maintenance of peace. "'(f) will endeavor to take steps in matters of intemational concern for the prevention and control of disease. u 'At·ticle XXII. "'To those colonies and territories which as a consequence of '''Article XXIV. the late war have ceased to be under the sovereignty of the " ' There shall be placed under the direction of tlle I.eague n 1l States which formerly governed them and which are inhabited international bureaux already established by general treati"'R if by peoples not yet able to stand by themselv~s under the stren­ the parties to such treaties consent. All such intemational uous conditions of the modern world, t~re should be applied bureaux and all commissions for the regulation of matters of the principle that the well-being and development of such international interest hereafter . constituted hn1 l be placed peoples form a sacred trust of civilization and that securities under the direction of the League. . for the performance of this trust should be embodied in this "'In all matters of international1nterest which are regulnted CoY"enant. by general conventions but which are not placed under the con­ "'The best method of giving practical effect to this principle trol of international bureaux or commission , tlie Secretariat oi' is that the tutelage of such peoples should be entrusted to ad­ the League shall, subject to the con ent of the Council and iE vanced nations who by reason of their resources, their experi­ desired by the parties, collect and distribute all re1e\ant infor­ ence or their geographical position, can best undertake this mation and shall render any other assistance which may be responsibility, and who are willing to accept it, and that this necessary or desirable. 1919. CONGRESSIONAL RECORD-SENATE. 3761

"'The Council may include as part of the expenses of the act entitled "An act to amend an act to authorize the Dauphin Secretariat the expenses of any bureau or commission which is Island Railway & Harbor Co., its successors and assigns, to con­ placed under the direction of the League. struct and maintain a bridge or bridges, or viaducts, across the u

r. To THE SENATE: " 1. Original Members of the League of Nations. I have received the resolutions of the Sen:\te, dated July 15 " SIGNATORIES OF THE TREATY OF PEACE. and July 17, asking : "United States of China. Japan. First, for a copy of any treaty purporting to have been America. Cuba. Liberia. projected between Germany and Japan, such as was referred " Belgium. Czecho-Sloyakiu. Nicaragua. to in the press dispatch enclosed, together witll any information "Bolivia. Ecuador. · Panama. in regard to it which may be in l)Ossession of the State Depart­ " Brazil. France. Peru. ment, or any information concerning any negotiations between " British Empire. Greece. Poland. Japan and Gennany during the progress of the war. In reply "Canada. Guatemala. Portugal. to this resolution I have the honor to report that I know of "Australia. Haiti. Roumania. no such negotiations. I had heard the rum.ors that are referred " South Africa. Hedjaz. Serbia. to, but was never able to satisfy myself that there was any "New Zealand. Honduras. Siam. substantial foundation for them. "India. Italy. Uruguay. Second, requesting a copy of any lettet· or written protest by "STATES INVITED TO ACCEDE TO TilE COVENANT. the members of the American Peace Commission or any officials "Argentine Republic. Norway. Sweden. attached thereto, against the disposition or adjustm~mt which " Chili. Paraguay. Switzerland. was made in reference to Shantung, and particula.rly a copy " Colombia. Persia. Venezuela. of a letter written by General Tasker H. Bliss, .Member of the " Denmark. Salvador. Peace Commi::?sion, on behalf of himself, Hon. Robert Lansing, " Netherlands. Spain. Secretary of State, and Hon. Henry White, Members of the Peace Commission, protesting against the provisions of the "2. First Secl'etary General ~f the League of Nations. Treaty with reference to Shantung. In reply to this request, let me say that General Bliss did write me a letter in whicl! "6. RECOMJII.EXDATIO~ OF THI!l COMMISSION. he took very strong ground against the 11roposed Shantung "At the last meeting of the Commission, the following reso­ settlement, and that his objections were concurred in by the lution was adopted: Secretary of State and :Mr. Henry White. But the letter can "Resolved, that in the opinion of the Commission, the Presi­ not properly be described as a protest against the final Shan­ dent of the Commission should be requested by the Conference tung decision, because it was written before that decision had to invite seven Powers, including two neutrals, to name repre­ been arrived at, and in response to my request that my col­ sentatives on a Committee. leagues 011 the commission apprise me of their judgment in that " A. to prepare plans for the organization of the League. matter. The final decision was very materially qualified by tho " B. to prepare plans for the establishment of the -Seat of policy which Japan undertook to pursue with regard to the the League. return of the Shantung peninsula in full sovereignty to China. " C. to prepare plans and the Agenda for the first meeting of I would have no hesitation in sending the Senate a copY, the Assembly. of General Bliss's letter, were it not for the fact that it con­ " This Committee hall report both to the Council and to the tains reference to other Governments, which it was perfectly Assembly." proper for General Bliss to make in a confidential communica­ COMMITTEE TO IS\'ESTIGATE SALlliES OF POSTAL EMPLOYEES. tion to me, but which I am sure General Bliss would not wish Mr. TOWNSEND. Mr. President, I ask unanimous consent to haYe repeated outside our personal and intimate exchange of tl.tat tlle senior Senator from New Hampshire [Mr. MosEs] be views. appointed on the part of the Senate a member of the joint com­ I have received 110 ''rritten protests from any officials con­ mission composed of Members of the two Houses from the Com­ nected with or attached to the American Peace Commission mittees on Post Offices and Post Roods to in\estigate the salaries with regard to this matter. , of postmasters and employees of the Postal Service. The Sena­ I run also asked to send you any memorandum or other in­ tor from Connecticut [1\Ir. McLEAN] was a member of the formation with reference to an attempt of Japan or her Peac~ Senate Committee on Post Offices and Post Roads, but under Delegates to intimidate the Chinese Peace Delegates. I am 'the reorganization of committees he is no longer a member and happy to say that I haYe no such memorandum or information. has asked to be relieved from further service on that commis­ Woo»now WILSON. sion. I ask that his request be granted and that th~ Senator THE "\VHITE HOUSE, •from New Hampshire [1\Ir. 1\losES] be appointed. 8 ,J.ug'ltst, 1919. The VICE PRESIDEI\TT. Is there any obj~ction 1 The Chair LAJ\"'DED ESTATES OF AMERICA:KS IN M:RXICO (S. DOC. NO. 71). 1hears none, and it is so ordered. The VICE PRESIDEJ\TT laid before the Senate the following The order as agreed to was reduced to writing, as follows : message from the President <>f the United States, which, with · Ordered, That the senior Senator from New Hampshire [Mr. MOSES] lbe :::ppointed on the part of the Senate a member of the commission to th~ accompanying paper, was read and referred to the Committee :investigate the salaries of postmasters and employees of the Postal on Foreign Rela ti.ons and ordered to be printed : SerVice, authorized in section 3 of the Post Office appropriation act THE SE~ATE: approved February 28, 1919, vice Senator MCLEAN, resigned. To Ot·det·cd, That the Secretary of the Senate notify the House of Repre­ I transmit herewith a report from the Secretary of State in .sentatives thereof. response to the resolution adopted by the Senate on June 19, PR~SIDENTIAL APPROVALS. 1919, in respect to the action taken by the United States with A message from the President of the United States, by Mr. relation to the prot€Ction of lanne

DEPARTMENT OF STATE, basis without any trouble. We· are confronted with old-time lVasltington, Attgttst 7. 1919. conditions, but have to buy everything, aside f rom our own line The PnESIDE "T : at abnormally high prices. ' The undersigneu, llle Secretary of State, has the llonor to I have tr~v~led cons.id.erably :md talked to a great- many refer to the resolution adopted by the Senate ·on August 2, people, and It IS my opmwn that the entire h·ouble with hi

'\Ve also know tbat the sale of Government supplies, which I said, l\lr. President, when I offered the communications that should have been done months ago, was held up through official I did not agree with all the sentiments expressed by my corre­ 'Y~shingtou to the detriment of the people. 'Vc also know spondent, and I am still of the same opinion. I agree to a great that if it was sold at once'it is only a drop in the bucket, as the extent with the Senator from Nebraska that each man looks at supplies of food this fall nm up to eight or ten billion dollars, this situation largely with reference to him~·elf and those cir­ and a hundre supply of money, has been enormously increaseu. 'Ve can conditions are unprecedented-are essential to the peaceful and not expect in the United States with a per capita circulation of wise and permanent solution of this tremendous question. $56 the same prices that prevailed when the per capita circula­ The VICE PRESIDENT. The Secretary will read the second tion was $36, any more than they can in Eur()pe with their letter presented by tlle Senator fi·om Connecticut. enormous expansion of currency. I think such complaints and suggestions as are made by the manufacturer who is a constit­ The Secretary read as follows : uent of the Senator from Connecticut are nothing more than BRIDGEPORT, Co:-;rN., A1.tgust , , 1919. the common clamor we bear of one clas against another. They Hon. FRANK B. BRA -oEGEE, are complaints against what is inevitable under present condi­ Unitecl ~9tates Senate, Wa-shington, D. 0. tion , condition that will continue until we get back to normal, DEAR SIR: I note with interest your letter of August 5, and anace treaty will have any effect "'hatever upon p~·ices; but for relief. tllere is no use tnlking nbout that, becnn~e the President thinks The·only plan put up \Yas that of the chief of the Brotherhood tJtP ol h<.'l' '\"ri,Y, Ol' :mys he dOC'S. of Locomotive Engineers, and to the writer it is too bad that 3764 CONGRESSIONAL RECORD-SENATE. AUGUST 11,

there is no Senator or Congressman big enough to stand up INCOMES OF CERTAIN ~rERICAN CORPORATIONS. anOrt, so that only a certain amount will leave ought to have. : the country during the next six months, with the added assur- I read a single paragraph : ance that any man buying this wheat and holding it to bolster up I have just completed a study of the earnings of 82 representa­ ' the market, incidentally having the banks advance him money tive American corporations, a record of whose profits is available for . enough to carry it as a marginable proposition, will be prose- each year from 1911 through 1918. This is not a list selected either because the profits were lart~c or because the profits were small. It . cuted and imprisoned. · is a list of all the corporations whose earnings covering this entire .A bill of this kind, as I take it, is the only one that will stop period were available to me. A compilation of these figures shows • that the same 82 corporations, which in the prewar years had an average the condition we are verging into, which is only anarchy. net income of $325,000,000, had net incomes in 1916 amounting to more President Wilson's proposed speech on Friday has no signtfl­ than $1,000,000,000, in 1917 of $975,000,000, and in 1918 of $736,- cance for most of us, as that is all we have heard for the past 000,000. This is after the deduction of every dollar of State and y~rs. !lll Federal taxes and of every conceivable charge which these companies four We have seen no action. We saw these high could devise for reducing and concealing their apparent profits. prices COming for months, but nothing was dOD('. I am convinced, as a result of my study,~.. that the actual profits, c>en You represent Connecticut. Take, for instnnce, Bridgeport. after the payment of taxes in 1917 and h:Jl8, were just as great as in To-day the employees of about 25 factories in this · city are on 1916, the difference being accounted for by the fact that in 1917 and 1918 these corporations set up all kinds of excessive reserves for strikes, demanding wages that the firms can not pay and run, depreciation, amortization, and other unspecified and fanciful con­ unless they again increase their prices, which they admit is tingencies for the purpose of evading taxation and concealing their excessive earnings from the public and the tax collector. But even 1 impossible. They have the alternative of meeting the demands taking the figures as they stand, we find that these 82 corporations of the men and running their shops at a loss ot· closing the fac­ earned, net, ~3 in 1916 and 1917 and over $2 in 1918 for every dollar tories and letting the city drift into a state of riot. These which they earned in the prewar period. This is profiteering with a vengeance, and the profiteers may well tremble lest the people avenge continued strikes and resulting idleness can bring only one defi­ themselves for this shameless exploitation during a period of the nite thing-disorder. Nation's greatest necessity. It the markets for foodstuffs can be broken inside of a week Mr. NELSON. Mr. President-- these strikers will have no excuse but to go back to work. Mr. BORAH. Just a moment. All of this information is to , Even from a capitalistic point of view the safest thing to do would be had by searching the records of the departments here, and ·be to break the wheat market regardless of what it will do. while the address was condemned throughout the country as I read with interest Mr. Barnes's report that this can not inciting the people to revolution, and so forth, my opinion is be done. I think that a man who handles United States Gov­ that it will be found that the facts as stated by 1\Ir. Manly are ernment money which is set aside to keep the cost of living correct; and if they are correct, the Attorney General will have down and then boasts that he has made the people pay $24,- something to begin with. 000 000 more for bread alone than was intended is no friend of Mr. NELSON. 'Vhat I

confronteu tlle people of this country during the Civil 'Var or fare? How would the merchants of the country fare? How

The test of Bolshevism against Americanism is confronting us said then, "Before you strike you must submit your demands right now nnd must be met and deciued. There is no Jl)jddle to this arbitration board," and we ~ould have created a board, ground; it can not bA &ide-stepped or dodged any more than tbe and that is what we ought to have clone at that time-created issue of slavery could be .side- tepped or dodged when it was a board. The only relief we can hope for is to provide some brought to the fore. Politicians side~stepped and dodged the s4stem by which we will require these rnilroall men or any other slavery question for generations; the Democratic Party of the men connected with our transportation systems, before they North and the Whig Party of the South temporized with it and strike, to submit the question to some board of arbitration and dodge

·me ·, launclled at the same tim"' · in one and. the sam. e Increase. in exports of food and1other commodities during the last 12 Same tl ~ '"" months caused a · gain of 262 per cent:in the number of cars- of export breath, you might say, and both backed·up by mo1~e or less.m- freigbt·received at· North Atlantic ports d~r~ng the week ended July 30 , sinuating threats that unless they. were ·gran.ted there.\\.·o.uld ; ~e over the number received during the corresponding week of 1018. tb A traffic report issued Saturday by .Qirector General of Railroads revolution, anarchy, stagnation, and' ind us t rutl paral ~SIS - ln 15 Hines showed a total of 5,825 cars received during this y-ear, compared country. There has been some effort made, in the last day 01' with 1,607 rece:ved i'or the corresponding week last year. two, to separate the demands, to show that. the t~reat of a ' When we were at war and were furnishing those associated. strike was only made to back up the demanc;I f.or an 1~erease .of with us in Europe with a large proportion of their munitions, wages and .not to enforce the demand ~ to sovietize the mdustnes clothing, food, and other necessities for the sustenance o-f, life of. this country· and yet the leaders of· the railroad brotherhoods and the. conduct of the war exports were far less than n{)W; last week issu ~d a statement in which they said that· the rail- The increase of our expm·ts is enormous, startling, and unr road employees of this country were in no temper to brook the- wholesome: It is bleeding this C{)untry of the necessities of life. return of the railroads ta their. owners. Now, if. language means We should not allow the people of this country to face st-ar.va­ anything, tbat means that they will not:tolerate it, thaLthey will tion merely for the benefit of people· in other countries. I be­ not permit it, that they will prevent it in one way or an,?ther-. lieve in giYing a sympathetic degree of attention to the wants They have done some reckless talking: One of the rmh·oad and, needs of1 people-who are. suffering in other parts of the brotherhood chiefs also said that if. C011gress should ~ follow a w{)rld, but. we should'· consider ourselYe~ first. I believe in· certain nolicy suggested by President Wilson the railroads America first. When we shall have looked, aften the welfare of would be· tied up so tight that: they would never: run again- our own people, then I say let us.,gir-e a humane and gympathetic- would never ruu again. That means a long time. I · do not f how that could occur unless the railroads of the• c.ountry. measure of attention to the w-elfare of the people o · the-· rest.· See of the w:orld. were destroye.u, unless their property should be physically de- We all know that: our exports-are greater now than they ever stroyed. were befor.e, . and no doubt many of ~ those exports are being paid This crisis has been launched, it appears to me, .as a climax. for by money that we have furnished gratis or loaned to. the to a long-continued· system of agitation to overthrow American• people of European governments. No doubt ma.ny, of those­ institutions-and the principles of a republican form. o:t govel·n- exports are being paid for with om. own money, out o:fr the ~ ten ment, to overthrow the rule of all the people·and establish r..ule:, billions of dollm·s that we authori~a 1 to be loaned to. fo-reign by a few people for the benefit of a few. I am opposed to class governments andi. out of the hundred! million dollarso that~ we legislation for the benefit of a few people. It does not make any voted• last. fall tor fOOd for.· poople in European countries. . r: difference whether the few· to ·be benefited by it at the expense also• unde1'Stand tl.mt· many of:- those.· exports are" being.: sold in of the many are laboring people or capitalists, Europe at· figur-es lower tnan those being charged. for.. articles I liave all of mv life stood against class legislation for- the of the same nature in this country. That Jllil.y, be very profitable benefit of a few, and•! still' maintain that stand; "P do not care to a few pro.fiteers.in, this countr~ ••who .are reaping the benefits, who it is that demands-speeiaLprivileges and, class legiSlation the immense. profits on these vast· exiijo-r.ts. Ent it is bringing for the benefit of the few at the expense of the many~ . I; am face to·face with dep1~ivation· millions on people·in this coll!ltry, just as mueh oppo~d to it to.-day as I ever WUSt and· I i am just and L do not believe· we should 1~eqp.irn , om' own. people to. fa~ce . as much opposeu to it for the benefit of ·one ·class as ,fon another, want in order. to show a humane interest: in peo-ple of other I say that Congress. should· set! its· face as a flint rock~ against countries. I! am for America first. America comes first witll this audaciou demand· of: representatives of a few people of: me.. I believe our first duty, is to- look after the welfare of OUI' this country to sovietize the industries of the United· States fpr own people. the benefit of· a class. Ir ~ ~ satisfied ~a~ the propagan? f?r: I un-derstnnd ~ the reason why shoes m·e so high in this coun1:1-y, this revolutionary. demand· 1s: only begmnmg;. and that. It w~ll , and. are mounting higher and higher; is that Italy has bought up. be conducted into and througli the next camP.aign~ Manv Wlll ·practically. all, of the-leather in this country. I_understand · that join 'in it. Thousands will,support it. shoes next• year will probably be double the price they ar.e this 'Ve may eAI)ect every rampant.. &>cHtlist, evecy. L. W. w., year. AtT a meeting of manufacturel'S-' of men's clothing, held a • every Bolshevist, every soviet, ev-ery lo.ng~haired man ani:tshort- few: weeks·ag-o; ,the chairman_of· the meeting declared: that in!l1is haired W{)man who wants to· Russianiz-e this country to- put_ opinion men's clothing' next year-would! cost twice wJmt it costs himself. or herself l:lack:o{"this.propaganda and· to bring, tO' bear; tliis .yeai\ Are-we.gojng to see ~. tb.ose- things ge on interroinably, in support. of. it. all of the power and=agitation possible. As · fm~ indefinitely, without making any. effort toJook after the w~lfare . as~ I am concerned, .my·back' is· against; the ·wall. Not·one•inch. of our own•people? Are we going to.allow our people to.face will I yield to this audacious..: demand. to sovietize. the.: indus-· want, and are we going to have to deal with threats of strikes, tries of this country. It. ca,n get no support from me:. Being and revolution, and· industrial par,alysiSi and stagnation of busi­ opposed to the plan to sovietize the industries.. of the country, ness, and actual suffering, without turning our attention to -some and not believing_ that it would. be fttir or lust· at this time to. method.of,stopping that extraordinary condition of affairs? increase wages of" railroad employees, when the Government,. This resolution merely refers the· matt-er tor investigation to in.. spite ot· high freigllt and passenger rates is paying out the Committee on the Judiciars~ It does not initiate any legisla­ millions of dollarS-a montll to foot the deficitn of the railroads, tion. It does not commit: the Senate to. anything; it merely I can not favor either of those demands. asks for· al study of the matter and repor.t on it by the Committee However; I. am very heartilY' in sympathY. with· tbe demands- on the-Judiciary; and I think it-is supported by common·sense. of railroad employees, as well as of· all other employees and all In the good' old days, when the average, all-round farmer other classes of people, that something be done to reduce the raised a crop, in the fall, when he would harvest his crop, he enormously high, cost of living~ which is. constantly. rising and would first lay in enough supplies to last him and has family mounting-higher and higher: I am in favor of reduoing the• through the winter, and probably through the year, before selL­ cost of-liv.ing, if possible, for the benefit· ofr railroad:employees, ing any. If he had awles, he would put enough apples.. in his for the benefit of all other employees, and for the benent of cellar to last his own family and: employees during the. winter, every individunlL-the whole people and not any one- class. I or probably a year, before selling any. Then he would sell the ' insist that Congress shoulu.do something about: tl1is. li it does balance. If he raised· potatoes, he would store enough potatoes :not effect some reduction in the cost of living, I! predict that in the cellar to supply his own family through the coming yeai·, there will not onlY~ be strikes butrriots, insurrection, looting, and and then he would sell the balance, sell what he could afford to destruction. of property in this country on. a scale never before sell; If he. raised pork, when hog-killing· time came he would known in its-history. I claim that the Congress should not.spurn salt down and,put away enough pork to last his own family, to any suggestion which appears to have any; merit or any; possible supply his own_table: and to feed the family ancl· employees hope of relief in it, which may appear calculated to protect the~ during the corning year, aud then sell the balance. welfar.e and to benefit the entire people, . and. therefore I hawe L claim that is a common-sense-business principle, and I con- ! introduced the pending resolution. It i to direct the Committee tend that the United States should do the same. We should ' on· the Judiciary to give consideration to the advisability of' first see that: our own people are clOthed and fed at a reasonable Ilegislation to restrict or prohibit, for a time, exports from the cost, and then export and furnish to the rest of the world what United States-of food, clothing, hats, caps, leathei- goods, and remains of our products. We shPUldt not r:eq_uire our people to any:. other necessities-of life. compete with. ttte whole world; even with our en-emies, and· to I. do not thiok that we. should allow the people·of·t:l;llS country; pay enormous, unconscionable- ppaes for the barest necessities· to be bled wbite for tbe benefit- of the·poople·of: the re~ tt of. the· of-' life- in, suffieient-quant.ities.:m.erely;·ro keep away star'\"a.tion. wor:ld ·and for· the benefit. of. the few. in. this. count1:y who make-, I· believ.e. tbis is wortn while foo.- the Judiciru:y Committee to. ewrmous {>rofits ·out on exports- from this countJ.·y .. I.read.fl·om: consider: and.r:e.norf:t upon. I- would not f:ilvoc putting a Chinese· the 'Vashington Post of: this mo1·ning: this aL-tic!e: wall aroundt tll.is country and cuttihg· off' au· expocts, b.nt the~ 3768 CONGRESSIONAL RECORD-SENATE. A-uGUST ll;

exportation of so:rhe of the necessities of life I believe could ing of the names of some of the active members of the press well be restricted in part for a time, at least until we get down bureau in charge of publicity for the Plumb plan : to a normal condition of affairs. Lincoln Colcord, former associate editor of the Nation, whose radical Mr. KING. 1\fr. President-- writings have often been the subject of public comment, is a member o! the press bureau. He is a close personal friend and coworker of Wil­ The PRESIDING OFFICER. Does the Senator from Mon· liam C. Bullitt,' the agent who was supposed to represent the American tana yield to the Senator from Utah? delegation to the peace conference on a mission to Lenin and Trotski, Mr. :MYERS. With pleasure. and that unfortunate mission, together with unexplained "leaks" of omcial documents bearing upon relations between this Government and Mr. KING. Mr. President, the subject whlch the Senator is the leaders of the Bolsheviki of Russia, is about to be made a subject of discussing, namely, the wisdom or propriety of applying an investigation, it is reported, by the Foreign Relations Committee of the embargo upon exports, is one which has received considerable Senate in connection with its consideration of the peace treaty. attention of late. I want to suggest to the Senator, however, RADICALS rN GROUP. some of the dangers that w.;mld result and some of the evils Herbert B. Brougham, a member of the coterie which includes Messrs. that inevitably would follow the establishment of an embargo Bullitt and Colcord, is the personal assistant to Glenn E. Plumb, the latter avowedly the chief propagandist of the plan which bears his upon foodstuffs and the other articles which we are now ship· name. ping to Europe. Raymond Swing, who was the correspondent of a Chicago newspaper Our exports during the past month were $938,000,000, the in Germany during the time that nation was at war and this Nation remained a neutral, :s in charge of the Plumb press bureau, and Ray month before eight hundred and some odd millions, and the McClung is one of his assistants. Altogether the personnel constitutes month before $763,000,000. The Senator must realize that when probably the strongest body of exponents of radical propaganda that . we export we must import. 'Vhen we export it means that we could be gathered together in this country, but none of them is in any way identified with the railroad brotherhoods or with organized labor 1have a surplus of certain products. Many of those things which in any manner. we exported were finished products, the products of factorie.s, Mr. President, on Thursday last I caused to be printed in consisting of shoes, clothing, and other goods, as well as food· the CONGRESSIONAL RECORD an editorial, which bears somewhat stuffs. The result is that if we cut ore exports absolutely it upon the same question that the Senator from Montana [Mr. would mean a congestion here in our markets, a glut in nearly MYERs] bas been discussing, from the New York Times of all the industries of the United States. May 30, 1919. It was printed on page 3700 of the CoNGRESSIONAL Mr. MYERS. I will say to the Senator that I do not favor RECORD of August 7, 1919, headed "An apology due," and is as cutting off exports absolutely. follows: Mr. KING. It would mean that factories woUld close down, [From the New York Times, May 30, 1919.] thousands and hundreds of thousands of men and women would be thrown out of employment. Every time you restrict exporta­ AN APOLOGY DUE. Senator POINDEXTER in his place in the Senate charged the Pre~l­ tion you are injuring somebody at home; you are damming the dent with having delivered to the Congress on Deeember 4, 1917, an stream of productivity to the extent of the embargo. add.re!s in which be spoke of the Bolshevist goverpment in Russia as I can conceive of cases where the interests at home are so " worthy of the admiration of every lover of mankind." On December 4, 1917, the Kerensky government had lileen. overthrown, but the imperative that an embargo is wise. I can conceive that the Bolshevist government was not e.trectively set up, the social democrats supply of foodstuffs may be so short at home that we ought to still having a considerable voice in it. It was not until over a month impose an embargo in order to prevent hardship and famine later that they dispersed the constituent assembly by force and em­ barked on the wild career of absolutism. and serious injury, physical and otherwise, to our domestic con­ On December 4, 1917, the President did. deliver an address to Con­ cerns and to our own people. Yet I suggest to the Senator that gress. Its purpose was to ask for a declaration o! war against when the Government attempts to lay an embargo it is playing Austria-Hungary. We find in it very little about Russia. ' He did say that if the real issues had been made plain from the beginning " the with fire. How far will it go? Where will it stop? sympathy and enthusiasm or the Russian people might have been once If an ~mbargo is laid upon wheat, somebody will insist that for all enlisted on the side of the Allies, suspicion and distrust swept an ·embargo be laid upon corn, or upon bacon, or upon shoes, away, and a real and tasting union of purpose e.trected." Is that what Senator POINDEXTER means? It does not sound much or upon cotton, and soon you would be deluged with importuni­ like his quotation. The President also said: · ties for an embargo upon the products of our country, and the "The Russian people have been J?Oisoned by the very same falsehoods result would be, as I stated, that importations would be cut that have kept the German people rn the dark, and the poison bas been administered by the very same hands." • off, the channel by which a market is found for our surplus That does not sound mnch like Senator PoiNDEXTEn's quotation. would be cut off, and it reacts immediately upon the people at Yet these two sentences are the only ones in whlcb President Wilson home; there would be unemployment in thousands of our cities on December 4, 1917, made any reference wltatever to Russia. He made no reference whatever to the month-old Bolshevist government. and towns. You would dislocate business, disturb our do­ Mr. POINDEXTER owes the President a retraction. He says be got the mestic affairs, and perhaps in the end cause more harm than quotation out of a Bolshevist pamphlet. He ought to verify his quota­ do good. tions when he gets them from such a source. Mr. THOMAS. Mr. President, that was the result of Thomas That is the conclusion of the editorial. The subject of that Jefferson's. embargo. editorial is a statement which I made and which appears in the Mr. KING. As the Senator :from Colorado calls to my at­ CONGRESSIONAL RECORD Of :May 28, 1919, on page 331, in a Colloquy tention, that was a policy which was pursued in the time of with the Senator from Arkansas [Mr. RoBINSON], who haerify his quotations when he gets them from such a source. doors, and all the world has been an audience, ns was d estred. ' The newspaper is wrong in that statement. I made no such I will not interrupt the reading of this address of the Presi­ statement as to the source of my information. I did not make dent to the Congress further than to make the comment that any statement as to the source of my information. I assumed if the same eulogy which the President delivered upon the Bol­ that it wonld not be necessary. I assumed that the Senate, as I shevist representatives at the Brest-Litovsk peace conference stated at the time, was familiar with the public"utterances of in regard to the openness of their proceedings could have been the President of the United States delivered in official messages delivered upon the peace conference of the Allies at Paris, of to the Congress. which the President was the chief representative of the ·United It seems strange to me that a great newspaper like this, which States, it would have been a great deal more gratifyino- to the is one of the thick-and-thin supporters of the President, is not people of the United States. "' familiar with the President's declarations and the President's Reading fm·ther from the same atldress I quote the President views upon the great public questions of the day and that it as follows: does the President the injustice of denying that he took a cer­ There is, moreover, a voice calling for these definitions of principle tain attitude in regard to the .government of Russia, known as nnd of purpose which is, it seems to me, more thrilling and more eom­ the Bolshevist government, which, as a matter of fact, he did pelling than any of the many moving voices with which the troubled air of the world is filled. It is the VQice of the Ru~sian people. They take. I think that the paper is entitled to a great art of the President's friends to such an assertion and ·that the paper That is the identical language, 1.1r. President, which I quoted ought to be regarded as entitled to a great deal of consideration in the Senate and which the editol·ial I have read disputes. for rushing to his defense; but certainly it is peculiar-that it is The statement of the President, which I repeat, to the eff.ect not informed as to what the President's attitude was in reganl that the representatives of the "Bolshevist government of =Rus­ to a subject to which it undettakes to state his position antl to sia at the Brest-Litovsk peace conference were entitled to =the write a leading editorial. admiration of every friend of mankind, is not in my opinion Mr. President, I have in my hand an official publication en­ the most significant feature of the President's address. The titled "Document No. 468, Sixty-fifth Congress, second session. country is familiar with the tragic occurrences that plunged Address of the President of the United States, delivered at a Russia into shame and impotency in course of the great Ger­ joint sessiou of the two Houses of Congress, December 4, 1917." man war. Everyone is familiar with the fact-it is borne in I al o have "Document No. 765, Sixty-fifth Congress, second upon their consciousness if not familiar to their minds-that in the midst of this wai·, when the issues involved in the war session. AddreSs of President Wilson to the Congress of the were hanging in the balance, the communists·of Russia, nay, not United States, January 8, 1918." the communists only but the communi.sts who believed in put­ The address of January 8, 1918, as will be seen by reference to the entire address, was on the subject of the new developments ting into effect the doctrines of communism by force--and, as ·I understand, that constituted BolsheviSm~verthrew the patri­ in nussia. It may enable those who are interested in this ques­ tion, and also the New York Times, to give proper interpreta- ' otic government of Ker.ensky, which had been loyal to the Allies tion to the President's remal'ks by reference to the fact that and which was endeavoring by every means in its power ·to 7, 1917; carry on the war against Germany, to which the United States the date of the overthrow of ·Kerensky was November and its associates were committed, to the full extent .of their that th~ Brest-Litovsk peace conference met on December 20, man power and of theh· wealth, and after having overthrown 1917, and continued in session until l\farch 4, 1918; that the the Kerensk:y government betrayed the Allies and made a ba.se treaty between the Bolshevist government of Russia and the peace With Germany. By its tetms many millions of 'Rnssian German Imperial Government, known as the Brest-Litovsk.... people were put under German dominion. By its treason t-3 treaty, was signed March 4, 1918; and that the constitutional the Russian people and its shameless betrayal of their allies assembly, which had been elected by the people of Russia, was victory seemed placed in the reach of Germany. It may not dissolved by force of arms by the Bolshevik usurpers on Janu­ have been known to blind men at that time what was obvious ary 20, 1918. So that it is quite significant, Mr. President that to those who could see, what was afterwards proved by the at the vety time mentioned by the Times, namely, a month''later Sis on papers and by a thoru;and -other proofs, that Lenin mid than December 4, 1917, the President declared his admiration Trotski were acting under the direction of the German general of tile Bolshevists. The New York Times editorial declares staff, but it was known that they had surrendered to that staff that on December 4, 1917- and withdrawn the support of the Russian Army from the · the Kerensky government had been overthrown, but the Bolshevist Allies' cause. These were the traitors who were the objectS' of · government was not effectively set up, the social democrats -still havin"' con·siderable yoice in it. It was not until over a month later that the; the President's eulogy. At the time of the President's address ~!~~~~s~~ ~h~ }~ti~~~ent assembly by force nnd embarked on the wild on J'anuary 8,' 1918, the ·United Stutes had been nine months in · 0 the war, the blood and treasure of our people had been pledged I wish to call attention in connection with the comment of the to its prosecution, and the liber-ty of our country depended upon editorial to tllc fact that it was just 'four days more than a its -success. month later than December 4, l917, namely, J'unuary S "1.918 that ·n is no exaggeration to say that these Brest-LitoY. k an­ the .1 President delivered the add1·ess to Congress which conbtined archists, whom the President recommends to the '' admiration tlle language which I quoted from him, at a time which the of eveTy friend of mankind," by the most shameless betrayal in 3770 CONGRESSIONAL RECORD-SENATE. -AUGUST 11, history, cost the li>es of a vast army of Americans fighting for pelllng than any ot the many moving l'Oices with which the troubled air ot the world is filled. It is the voice of the Russian people. They are their country in France and the blood of hundreds of thousands prostrate and all but helpless, it would seem, before the grim power of our Allies. of Germany, which has hitherto known no relenting and no pity. Their I say the country is familiar with those circumstances. The power, ~pparenqy, is shattered. AJ?d yet their soul is not subservient. They will not yield either in principle or in action. Their conception significant feature of the Presidents addresses of Janu,ary 8, of what is right, and what It is humane and honorable tor them to 1919, and of December 4, 1917, is that they show the astonishing accept, ha.s b~en staten wth a frankness, a largeness of view, a gen­ fact that the President of the United States not only looked erosity of spirit, and a universal human sympathy which must challengf! the admiration of every friend or mankind ; and they have refused to upon the representatives of the Bolshevist government with ad­ compound t~eir ide!ils or desert others !Jlat they themselves may be miration but that he approved their terms of peace and was sate. {President Wilson in an address delivered at u joint session of the using his influence ns the chief officer of this Government to two Houses ot Congress, Jan. 8, 1918.) bring about similar terms of peace between the United States Mr. President, those declarations of the President, in his and its associate powers and Germany. addresses to Congress, were not, as I said before, excep­ I wish to read briefly from his address in order to show that tional or casual, but were consistent parts of n fixed course. fact, which is somewhat of an enlargement and development of They were expressions of a settled principle and policy of the idea that was merely suggested in some of its milder forms Government by which the President's attitude toward th in the quotation which I have already presented. It is quite fa­ Bolshevists wa~ determined. This, I think, will clearly appear miliar, Mr. President, that on January 22, 1917, a short time by considering them in connection with the various incidents I before the United States entered the war against Germany, will now call to your attention. I have in my band the state­ the President made an address to the Senate of the United ment of the governor o:t accompanying his action in States after our subsequent a.....<:S<>Ciates had been carrying on the commuting from death to the sentence o:t war for several years, when the issues were well defined and Thomas Mooney, convicted of dynamiting a preparedness-day familiar to the world, in which he declared: parade. In this statement of the are The statf'smen or both of the groups of nations now arrayed against incorporated several messages from the President of the United one another have said, in terms that could not be misinterpreted, that States to the governor, requesting his interference with the it was no part of the pcrpose they had in mind to crush their an­ course of the decisions of the courts of Californin in the Mooney tagonists. But the implications of these assurances may not be equally clear at all-may not be the same on both sides of the water. I think case in order to secure for Mooney a new trial. Strange as it it will be serviceable if I attempt to set forth what we understand them may seem, it appears from these messages of the President to to be. the governor of California in the Mooney case that the same They imply, first of. all. that 1t must be a peace without victory. It is not pleasant to say this. · I beg that I may be permitted to put my influences that tho President eulogized in his address to Con­ ewn interpretation upon it and that it may be understood that no other gress which I have just read, and to which I referred here on interpretation was in my thought. a former occasion, were operating upon him to induce him, On December 4, 1917, many months after the United States notwithstanding his position as Chief of the Federal Govern­ had committed itself to this war, in an address to the Congress, ment, to use the influence of that position to inte;rfere witb the the President referred to his speech of January 22, 1917, in course of justice in a sovereign State of the Union. which he declared that there should be a peace without victory, Gov. Stephens says: which was the same thing as saying that France and Great On July 22, 1916, 10 persons-men, women, and children-were killeu nnd about 50 others wounded in a bomb explosion during u preparedness Britain should not win the war, in which he confirmed the parade in the city of . views he had expressed at that time. This, I repent, was eight The parade was a patriotic manifestation into which the people of months after we ourselves had entered the war and our people the city had entered with much spirit and loyal impulse. were exhausting our resources in order to gain a victory. HOSTILITY TO UNIT:tlD STATES DEB'EKSE lil!lASURES ACTUATED ClllliJ'l. Manifestly, because of the occasion chosen, hostility to the Natlon's From every point of view, therefore, it has seemed to be my duty to defense measures must have had a part in actuating the perpetration l!lpeak these declarations of purpose-- of so horrible a deed. It is not unreasonable to assume that a sympathy This is on pnge 6 of the President's address of December 4, or even a definite relationship existed betw-een these murderers anu the propaganda and violence then being engaged in throughout the country 1917- by agents of the German Government. to add these specific interpretations to what I took the liberty or say­ The case as presented to the California courts was that of murtl of purpose which is, 1t seems to me, more thrilling and more com- death sentence imposed upon Mooney." 1919. CONGRESSIONAL RECORD-SENATE. 3771

' movements of the country and organizations of different names Note again: " I would not venture again to call your attention to this case did I with the internationale of Russia and the socialists of Ger­ not know. the international significance which attaches to it. many, many of them acting under the direction of the German (Signed) "WOODROW WILSON." autocracy, which used them for its purpose, I call attention to The governor says : this report from the 'Vashington Post of May 10, 1918, showing At the time o! the receipt of these messages the case was still pending the connection between the I. '\V. '\V. movement in this country in the supreme court of the State. Not until August 23 was the case finally disposed of by the California courts, and on November 18 by the and this same Bolshevist junta in Petrograd, which were power­ Supreme Court of the United States. ful enough to induce the President to interfere in the Mooney Further, the go\ernor says in his statement: case and for which he expressed his admiration in the speech REFUSES TO "'I'IEW CASE 1\S CLASH OF CAPITAL AND LABOR. to Congress which I have read: I refuse to recognize this case· as in any fashion representing a clash Chicag_o, May 9 : Members of the Bolshevik party to interpret Bol­ between capital aud labor. I regard the petition of the defendant tor shevism mto I. W. W.ism, which is one manifestation of it in the United clemency solely as tbat of a man convicted of murder in the first degree. States. On his behalf a propaganda bas been carried on to make it appear that CHICAGO, May 9. he is a martyr to the cause of labor. This is absurd. The methods pur­ Members of the Bolshevik Party in Russia were corresponding with sued in this propaganda have partaken largely ot the system described the Industrial Workers of the World here in August, 1917, relative to in the following letters written by . an associate of activities in America, according to evidence submitted by the Govern­ Mooney and an ans rchistic agitator: ment to-day in the trial of 112 I. W. W. leaders for seditious conspiracy. "I have had some experience in labor matters. I have also partici­ Letters, antedating by only a few weeks the Russian revolution that pated in the defense worl{ of various labor cases in the East; and all placed the Bolsheviki in power, sought information from William D. my experience bas convinced me that in such matters the thing of chief Haywood and others as to the progress being made in the campaign to importance is to create favorable public sentiment. Funds, money for "take America from the capitalists and bring about industrial freedom." the defense, etc., are of secondary importance. Commenting on relations between the I. W. W. and the n.ussian party, " Take, for instance, the case of Alexander Aldemas, the Spanish one of the leading Russian members of the I. W. W. informed the mem­ marine worker. He was arrested during the transport workers' strike bership on August 25, 1917, that "very soon we will have a Russian of some three years ago, and be :wa~ charged with ~utting a scab a.nd administration of the I. W. W." shooting three policemen. The d1stnct attorney clauned he could g1ve him 40 years. DEFY COURTS AND GOVERNMENT. " I was secretary of the Aldemas defense committee when Simon Throughout the day the Government read into the records excerpts Polloc1' one of our attol'lleys, came with an offer of compromise from from propaganda used in the alleged antiwar campaign, pamphlets call­ the district attorney. Aldemas should plead guilty and get off with ing upon workers to destroy property for the purpose of wreckin~ indus­ seven years State prison. • • • We had little money. Lawyer tries, and song books contaimng bitter attacks on religious orgamzations Da rling, of Brooklyn, had squandered several thousand dollars of our and defying the courts and the Government. hard-collected funds, but we gave biro the sack and engaged Pollock. "What is more civilized than for the workers to create powder that But we fli

LYIII--238 '37'72 CONGRESSIONAL RECORD-SENATE. AUGUST 11,

Four of these were subsequently deported, Since that time, the police it was the President, but I will submit the documents for what say, they have had no evidence that the house was being used as. the 1 they are worth. 1 headquarter-s of the terrorists. In the San Francisco- Chronicle of July 12, 1919, there is an The "Russian People's Home" at that time was tile head­ article with this headline antl reading as follows : quarters of the terrorists in tbe United States, and according to ROBT. MINOR CASE BIGGEST SCANDAL OF WAR, OFFICIALS OF AnMY DE­ :the information which I ha\e, to which I have undertaken to CLARE-LANSING AND COL. HOUSE INVOLVED, REPORT-FRENCH CEN­ give a judicial consideration, it is that same influence which has SOR STO'PS STORY. 1 reached so far as to interfere with the processes of the courts PARIS, July 11. •in California. The same strange penchant for settling " inter­ While Secretary Lansing was talking about the truth and international reparations before a South American and Franco-American audience in . national complications" by concessions of essential rights and Paris on Tuesday night, the French censor forbade publication here of principles, as in tile internationalization of the Panama Canal a strictly American story about Robert J. Minor being released by Gen. and the interruption of judicial procedure in Califernia led Pershing on reported orders by President Wilson. Secretary Lansing and Col. House aTe involved in what, Army officials nlso to interference with the processes of the administration of prlv~ely declare, will be the greatest scandal of the war when the criminal law in the State of Utah, in the case of Hillstrom, American public hears the evidence. An Army official says Minor was • generally known as Joe Hill, too hobo poet." He was "an prepared for a printed campaign to make the American Army of Occupa­ tion Bolshevik. It is known in. Coblenz that the printer who. produced the active member of the I. W. W. and the author of the hobo march­ pamphlets conta'ining Minor's secrets of Bolshevism bad been located ing song, Hallelujah, I'm a Bum." by the American Expeditionary Forces and was pl'epared to testify to Gov. Spry, of Utah, on NoYember 18, 1915, gave out this state­ Minor's connection with the unsettling propaganda had the case gone to trial. ment in regard to Hillstrom, who was un-der sentence of death, CONGRESS~I.\N DEPOSI~D COIN, upon conviction of murder: Minor was seen in Paris Tuesday evening. - It is known $250 was Reviewing the history of the case, and paTticul~ly the President's transmitted to him through official channels, the money having been action in connection with it, the goyernor says, in his telegram : deposited in Washington by an Americaa Congres man. It is also "September 30 you requested a. stay of execution of the sentence to k-nown that Acting Secretary o.r State Polk transmitted from Washington give the Swedish minister an opportunity to present his view of the case. to Paris a report on Minor's previous radical activities, which is said Upon the same day, at your request only, on the assumption that you to be anything but co!Ilplimentary to Minor. were in possession of facts not presented to the board, I granted a Ambassador Wallace, interviewed to-da~. said: respite until October lG, especially requesting that the Swedish minister "The American embassy's official knowled@le of the Minor affair is personally investigate the case and appear before the board. Under confined to Col. House's ref}Uest for information shortly after Minor's date of October 1 you advised me that your only reason fo:r interceding arrest in Paris about June 1 by the- French police and his deportation to was the request of the re-presentative of u. foreign government. Coblenz. When information on the arrest- was obtained it was given to Col. House, and our embassy's interest ceased since the American l!"orelgn Government again, although this time apparently not, Expeditionary Forces then became custodian of !\Iinor's person." in fuirne s I may say, the Government of Russia, but the Gov­ BRITISH WOULD QUIZ lli!\OR. ernment pethaps of Sweden on this occasion was the reason It is recognized Ambassador Willlace's and Gen. Pershing's positions for the attempt to put a brake upon the procedure of the courts in the matter haye been ertremely delicate and embarrassing, and that Army officials released Minor only on the reported direction of President of Utah for the administration of its laws. As to the infiuence Wilson. British authorities are deeply interested in getting po sess­ cooperating with the S\vedish Government it is stated: sion of Minor. They desire to interrogate him regarding Bo!shevik Ever since his al'I'est it has been alleged by his I. W. W. brethren propagan(}a in the British Army. and by many socialists. that Hil~strom wa~ b~ng made a victim of cl~ss Another a.rticle from a different source-­ prejudice because of his revolutionary act1vities, and they have eamed Mr. KING. Will the Senator yield? on an energetic campa}~ in his behalf, en!fstlng the !lid of President Wilson the Swedish m1mster-lli1Istrom bemg a Swedish subject-and 1\ft·. POINDEXTER. I prefer not to do so if the Senator will many ~ther p1·ominent persons. This week the American Federation of pestpone his question just a moment. Labor, in convention in San Francisco, asked for clemency for Hillstrom. Mr. KING. It is with respect to the Minar matter. The governor says : Mr. POINDEXTER. If the Senator insists upon it, I ·hall October 1G at the regular board meeting, an open hearing was had in of course answer his question. further consideration1 of the case. llillstrom's attorney advised the board that there was nothing further to present and that Hillstrom Mr. KING. I shall not insist upon it, of course, if it dis­ declined to anpear before the b<>ard again. pleases the Senator. The only representation in the convict's behalf was a short telegram Mr. POINDEXTER. I read a di patch from Coblenz dated from the Swedish minister, requesting commutation of sentence, not by reason of any new thing in relation to the case, but, as lie expressed July 8: it, " for tbe sake of humanity and comity wroally practiced between Minor release laid to orders of "higher ups." friendly nations." :Because of the absence of any showing the board · I am presenting these documents, Mr. President, for what terminated tlo!e respite and again denied the commutation. The convict thereupon was on the 18th day of October resentenced by the C()Urt to they are worth, and I call attention to the fact that they come be shot November 19. from a great many different sources and have a great wealth of Forty-six days after the granting of the respite and at the eleventh detail and substantiality. This is an article under the name hom·, you, as the President, without stating any reasons therefor, again wired, urging a thorough reconsideration of the case because of its of Edwin L. James, who, I assume, is a well-known newspaper importance and the justice and advisability of such a course. correspondent from the prominence that is given his name. Your interference in the case may have elevated it to an undue im­ pot·tance, and the receipt of thousands of threatening letters demanding UNUSUAL CASE OF FORMER S. F. NEWSPAPER MAN STIRS 1 "TEREJST 1~ the release of Hillstrom, regardless of his guilt or innocence, may attach PARIS-COL. HOUSE ACTIVE--SUSPBCTED PROPAGANDIST Is MYSTE­ a peculiar importance to it, but the case is import nt in Utah only niOUSLY Fn.EED AFTER ARMY COURT NAMED. as establishing, after a fair and impartial trial, the guilt of one of the [By Edwin L. James, Special Correspondent The Chronicle.) perpetrators of one of the most atrocious murders ever committed in COBLENZ, Jt"ZY 8. this State. It is also important by reason of the fact that this case Robert J. Minor, held for four weeh--s in the millta.ry prison at Coblenz has bad more careful and painstaking consideration at the hands af the awaiting trial on charges of Yiolation of the articles of war, has been proper officials of Utah than any other like case in the history of the released. State. - . Orders for his release app~ar to have emanated from a source supe­ rior to military auth{)rity. He was freed after the military commis­ That is the case which, at tl1e instance of a foreign Govern­ sion had be1!n named to try him, after the charges had been prepared ment and of the socialist friends of Hillstrom, the President of and served nPQn him, after witnesses had been brought from many the United States undertook with the influence of his ·office to places, and after great effort and expen e by the Army in the prepara­ tion of the case. His release is regarded as unusual. control. There is the statement of the governor of Utah that In no other case in the legal annals of the American Expeditionary the President bad no facts to present; and t:l'lat he offered no Forces has such interest been shown by persons in civil authority not · reason, no excuse or justification whateV'er for his effort to set connected with the Military Establishment. In no other case has the embassy at Purls called upon Army headquarters every day for in­ aside and pervert the administration of the laws of Utah except fonnation. that he had been requested to do so by a foreign Government. ARRESTED IN PACtS. The President's telegram to the go\ernor of Utah in that case Minor was arrested in Paris June 8, after nttcndin'"' a meeting of the Paris strike lead~rs. In his hotel was found a trunk full of propa­ i. as follows: ganda, supposed to have been for distribution among American soldiers With unaffected hesitation, but with a very earnest conviction of the in Germany. importance of the cas~, I again-- The first notice of high interest in the case came with a request This is his second telegram- from Col. llouse for information. Soon after money came for Minor through the American embassy in Paris, a thing natural enough. ~cntme to urge upon your excellency the justice and advisability, it it Thereafter the embassy gave orders that it be kept informed of all de­ be possible, of a. thorough reconsidei·ation of the case of Joseph velopments.t and nearly every day the embassy called Coblenz on the llill ·trom. telephone ror information. 1\leanwhile the British military authority_. WOODROW WlLSOX. at Cologne tried 10 persons there for radical ell'orts among the trOOIH!, including an attempt on Gen. Plumer's life. Minor's name was men­ :.\tr. _President, passing from the Mooney case and the Hill· tioned at this trial a number of times. , strom ca e, which are, I think, clearly shown to be but incidents !IIIXED WITII P..ADlCALS • . in the general course of Bolshevist activities and I. "\V. W. Following his trial. in Germany, 1t was shown be hacl associated with I prolxtganda in this country, I w·ant to call attention to all(}ther radicals there. Saturday there came orders from Gen. Pershing to . ca e in which there w-ere similar interferences with the cou~ release Minor. He was put in a train and sent to Paris. Not until late last night did the military authorities mal'e public the fact that i of justice oy the President, apparently, or at least by some one he had gone, and then only after it had leaked out through a sub?rdi· in high authority. I am not prepared to say in this case that nate officer. 1919. OONGRESSION AL RECORD-SENATE. 3773

The authorities here refuse to give out the evidence against Minor Now, quoting from the New Freedom: or to allow correspondents to see the alleged Bolshevik propaganda, or the charges. Minor is a former New York and San Francisco news­ "Don't you know that there are mills in which men are made to work paper man, once a cartoonist on the New York World. He is a graduate seven days in the week for 12 hours a day, and in the 365 weary days of Princeton and the son of an American judge. in the year can't make enough to pay their bills? And this in one of the giants among our industries, one of the undertakings which have I am informed upon authority which I believe to be creditable thriven to gigantic size upon the very system. • • • that was the head of the Mooney Defense League. "We have come to be one of the worst-ruled, one of the most com­ pletely controlled and dominated governments in the civilized world­ Among the effects of one of the Hindoo conspirators tried and no longer a government by free opinion, no longer a government by _convicted in San Francisco were letters introducing Comrade conviction and the vote of the majority, but a government by the Robert Minor to Trotski, in Russia, and asking Trotski to as­ opinion and the duress of small groups of dominant men. • * * "Don't you see that big business has already captured the Govern­ sist in the revolution in India; there were also letters of intro­ ment? duction to a celebrated revolutionary woman in Sweden. "The Government of the United States is the foster child of special It was rumored that Minor was first indicted for sedition in interests." Attorney Vanderveer than pointed out in a copy of the Industrial the United States courts in New ~ork-that part I only state Worker, an I. W. W. publication, an advertisement offering The New upon information-and then given passports to Russia; his 1!1:eedom as a prize to subscription solicitors. "The I. W. W. has bor­ associate, Selig Schulberg, was refused passports to Russia rowed and adopted President Wilson's philosophy," he said in addressing about that time. Schulberg intended to take the Mooney prose­ the court. cution film, called "The Frame Up," to ·Russia. :Mr. KING. If the Senator will pardon me, I might suggest Robert l\finor is supposed to have written the scenario for to him that it is an ariom that the devil can quote scripture; this film. so that no doubt the I. W. W. might quote a very excellent book Lieut. Leonard and Sergt. Green, of the Army intelligence in support of their pernicious doctrines. office in San Francisco, were in close touch with Minor's activi­ 1\fr. POINDEXTER. But you •can not find any doctrine like ties. It is rumored that the Army intelligence office was called that in the Bible. off the scent from high authority in Washington. As to the spread of this propaganda and this philosophy as So much for that incident, 1\fr. President. quoted in this instance in the defense in a criminal case and In following the course of these activities, which in order to exemplified in so many directions, I note a remarkable incident, be understood, obviously, should be taken as a whole, in order which, taken in connection with the other circumstances arising to determine whether or not there is a settled beli<:f, policy, or from day to day, seems to me to be probably a part and parcel principle involved, and to show the effect upon the country, I of this new, synchronized, and harmonized movement on the wi h to call attention to a dispatch from Jackson, 1\finn., dated part of the I. W. W., the Russian Bolshevists, and their sym­ July 9, as follows: pathizers and encouragers: I:AEU ' S VIEWS LIKE WILSON' S, HE SAYS-NORTH DAKOTA COXGRESS:liAN BL'iQUET GI\E~ TO ME.N CO~VICTED OF SEDITIO.N. DEFEXDS NOXPARTISAN LEAGUE AT TRIAL. SEATTLE, WASH., June 1ft. JACKSON, MINN., July 9. Councilman W. D. Lane, acting mayor during Mayor Ole Hanson's Representative J. l\l. BAEn, of Fargo, N. Dak., testifying to-day at the recent absence in the East- conspiracy trial of A. C. Townley and Joseph Gilbert regarding his statement of principles in the Nonpartisan League's war-program pam­ Hanson was touring the East to receive congratulations for phlet issued in 1917, declared the sentiments cont,ained in this pamphlet having put down the Bolshevist revolution in Seattle, and while havP. since shown that "myself and the league were five months ahead he was gone the acting mayor of the town, ,V. D. Lane- of President Wilson's 14 points." BAEn declared the attack on war corporations contained in the pam­ and 300 men and women prominent in labor circles attended a banquet phlet was made beforP the Government passed the excess-profits law. last night in honor- lie defended the criticism <>f " imperialistic designs" coptained in the One might think it was in honor of some very distinguished pamphlet by asserting that bis criticism has been supported " by the treaty recently drawn up at Versailles, where .Japan and other nations person who had rendered some great servi~e for the State; but ha vc gained vast territory whkh · we must protect." it was in honor- After Representative BAER read his war declarations and explained of Hulet M. Wells and Sam Sadler <>n the eve of their departure for them on direct examination, he was cross-examined by Prosecuting the Federal penitentiary, to serve a two-year sentence for sedition. At torney Nicholas. The banner of the electrical workers was hung over the face of a large Nicholas, taking the utterances aimost sentence by sentence, de· American flag used as a decoration. Red carnations were used as table manded that the North Dakota Congressman explain bow the utter­ decorations and worn by many of the banqueters. ances should be construed as assisting the Government in the war. Wells was a former president of the Central Labor Council. B-\EH insisted again and again that be followed the attitude of Presi­ de.nt Wilson in drawing a distinction between the peoples and the rulers As showing another incident in the publicity program, indi­ <>f various governments. cating the danger, the effect, and the use which is made of the l\Ir. BORAH. Does l\Ir. BAE.R state what the 14 points are encouragement, given by the high officials of the Government to no"·? movements of this kind, here [exhibiting] is a photograph of Mr. POINDEXTER. No; they have since been lost. a billboard in San Francisco. Clear across the top of it, in Another incident, Mr. President: I stated in this address, large letters, are the words " President Wilson," followed by which was challenged by the New York Times, that I supposed this statement: that the printing of the President's eulogy of the Bolshevists Has asked for a new trial for Thomas J. Mooney. Mass meeting, upon the back of their pamphlet in circulation throughout the Civic Auditorium, Tuesday evening, April 16. To secure justice in this world would be an encouragement to communists. I leave it to case stand by the President. impartial judges as to whether or not it would be, and I want This is a photograph of the billboard. The description of the to cite a little proof to bear out tbe statement which I made. billboard, with this language on it, as stated by my con·e­ Here is a report of a fact about which I assume there can be spondent, is as follows: I inclose herewith photograph of one of the numerous billboards In no question. In the Post-Intelligencer of Seattle, 'Vash., this city bearing a poster of an unusual character. It explains itself. Wednesday, May 28, 1917, the headline of the article is: Without warrant, the President is utilized to give added force to an Philosophy of I. W. W. is from President's book-Bruce defense con­ appea l emanating from an anarchistic source-an appeal that 1s of an tends The New Freedom is source of radical views. incendiary nature and that is calculated to inflame public opinion, the The article is as follows : ctiect of which can not be other than prejudicial to law and order. * * * $ * * • That the I. W. W. drew its philosophy from the teachings of President Another odr, was the amazing contention of the defense German consulate. In other words, on one hand, as a public official Tuesday in the trial <>f James Bruce, now facing a charge of criminal supposed to be in quest of pro-German plots and plotters, fully pos­ anarchy in the superior court. sessed of Government secret business pertaining thereto; on the oth~r Following a lengthy verbal skirmish, during which the jury was hand, professionally engaged in the direct service of the Kaiser's duly excused, between George F. Vanderveer, counsel for Bruce, and Deputy accredited representatives and working to advance their interests and Prosecutor Charles .E. Claypool, Judge Walter M. French overruled the assist them in the cause they represent. Such a thing would probably State's objection to the reading of excerpts from Mr. Wilson's book. be impossible in any other country than America. Jekyll and Hyde And in the course of his cross-examination of a witness for the State, w-as an amateur. Elbert Coutts, a former I. W. W. agitator, Vanderveer read several pas­ sages which the witness said embodied to a great extent the I. W. W. Passing on, 1\fr. President, very briefly to the counterpart or philosophy. this movement in foreign countries. II,l Egypt they had a per­ Certain statements in the book presented by the attorney, Coutts said, did not agree with arguments he bad heard in I. W. W. halls, but the fectly futile and helpless insurrection. l\Ien, women, and chil­ general tenor of the passages, he asserted, after hearing them all, was dren marched down the streets of Cairo crying, " Hurrah for in harmony with radical theories. Dr. Wilson," their emotions being based upon speeches which WILSOX'S EOOK IS QUOTED. they had read from the President promising self-determination Some of the most striking paragraphs from the book read by l\lr. to the peoples of the world. The result of it, of course, was Vander veer- a lot of funeral processions, and nothing more. That is the In the defense of a man charged, according to this article, wide gulf between promise and performance, between b~autiful with criminal anarchy- theories and putting those theories into effect, between raising follow. the aspirations of peoples, inciting them to futile efforts, and ·CONGRESSION A.L RECORD- SENATE. A_UGUST 11 3774 ' coming to their assistance, in doing something for them when I present here for your consideration in that connection a state­ they have been aroused. ment ·from Tokyo, dated June 5 : I have an article here from a very brilliant writer, although TOKYO, '3une 5. Reports that .American missionaries incited the Kot·ean insurrection I think he is a kinu of Bolshevist himself. He was arrested 'in are quite incorrect according to a statement of K. Yoshlzawa, conn elor ·Egypt, and was there while these things were taking place. I of the Japanese foreign office, who has -returned after an investigation refer to William T. Ellis. H e writes in sympathy :with this of the situation in Korea. Speaking to Japanese newspaper men lli. Tosllizawa expressed the revolution and describes some of the .circumstanees of it. view that the disturbances were the outcome of a eollision between the CAmo, May so. old-fashioned thought of the Tenclokyo cult anmber of a Government board assigned to investigations of think that all things desirable may lle granted overnight. They ~)ect industrial difficulties. .Direct charges contained in the mas!< of ·mate­ the millennium in the morni11g. rial of suppression of reports of anarchistic and I. W. W. activities and They are not peculiar in that respect. There are orne in propaganda indicate that the subtle poison bas infected half a dozen this country who expect the millennium in the morning, and or more of the working parts of the governmental -machine. that it can be brought about by a '\\ave of tl.le hand, and that Here is a circular put out by the Department of Labor, issued we can escape the labor and the difficulty and the time that has through the United States Employment Service: been required to accomplish the blessings of the world; that by For extra copies address Roger W. Babson, Chief, Information and Education Service, Department of Labor, 170G G Street NW., Washing­ some sudden ehange in government, some new proclamation, we ton, D. C. ·W. B. Wilson, Secretary of Labor. can establish a new order, in which all men will be comfortable and happy and free from the evils of the world. It seems that The United ·States Department of Labo1· is signatory to it. i:hat was the 'idea that these people had gotten. This is -a dodger in large letters, quite significant now in the face He goes on to say : of the demand :for the nati-Jnalization and socialization, not only of the railways but-as I read in the statement of their chief Then came some announcement whrch turned all eyes toward the two Amel'icans perched up l.n the gallery, and quickly there followed, representative before the House committee--of all industry. in perfect unison and with great vehemence, the familiar "Yahia el Changing from :war to peace rwe must cooperate as American freemen America ! " " Yahia Dr. W1lson ! "-" Long live America ! " " Long live uow or later drudge as somebody's slaves. Dr. Wilson! ., :Alter which the preacher proceeded, \vith arms up­ stretched to us. ·to make an address wherein he ve r President Wilson bas asked for a new trial for Thomas J. Mooney. known. From this central point the fire will sweep in every di"Pe-ction ':Mass meeting, Civic Auditorium, Tuesday evening, ApriJ 16, 8 p. m., to and with even less restraint than has been shown in Russia. All the secure justice in this case. Stand by the President. Speakers, fax­ structure of western civilization that has b-een built np like a frame­ well McNutt, Mrs. Hannah Sheehy-Skeffington, William Spooner, Rena work around the East will .collapse, and there may be nothing left for J. Mooney, Israel Weinber"', Edward D. Nolan; chairman, John P. B eck­ the western nations to do but to shut themselves within their own meyer, Machinists' Union, Lodge No. 6-8. Auspices of Machinists' Union, borders until the holocaust has exhausted itself. So many dire possi­ Lodge No. GS; indorsed by San Francisco Labor Council and affiliated bilities are conjured up by the prospect of Bolshevism raging outward unions. from Egypt that one prefers not to dwell upon them. Mr. POINDEXTER. They ·say they are for re\olution ; that Tl10se are some of the prospects that are created in the world the railroads, -as the Senator .from Montana [1\Ir. MYERs] quoted, by these declarations to which the revolutionists of Egypt are will be tied up so tight that they will never run again if we do looking to set them .free of the ·British rule and bring to them, as not pass the laws that they want to have passed. That is in line. this writer says, a new·Jnillennium. And what was the result? with the I. W. W. They are for revolution. CAmo, May 11. Here is a dispatch from the Associated Press: Egypt's insurrection is not .Bolshevism-though it may easily become NEW YOll1i:, July 11. the entrance of Bolshevism into the Orient-but it borrowed one of Bol­ shevism's big ideas, the public funeral as a demonstration. This device James T. Holland, president of the NP-w 'Yorll. State Fetleration of of making the dead .speak the message of the moment has reached its Labor, testifying to-day before the joint legislative committee investiga­ climax in the land that bas ben more famous for its mummies than for ing radical and seditious activities in the State, declared that the its men. America has no .Jlllalogy for it. I . W. W. had organized many thousands of workers throughout the country on a platform which included in its planks one

Also, Mr. Presiiasm. They were scientists in their way-the best way at that time no doubt he would- of their age--those fathers of the Nation. Jefferson wrote of "the laws of nature," and then by way of afterthought, "and ot nature's There is a Providence to which I am perfectly willing to submit. Gotl." And they constructed a government as they would have con­ But as tor other men setting up as providence over myself, I seriously structed an orrery-to display the laws of nature. Politics in their object. I have never met a political savior i.n the flesh, and I ne-ver thought was a variety of mechanics. The Constitution- expect to meet one. Referring to the Constitution of the United States- . On page 64, he said : was founded on the law of gravitation. The Government was to exist I do not believe that the1·e is a group of men of any kind to whom and move by virtue of the efficacy of " checks and balances." we can afford to give that kind of trusteeship. The trouble with the theory is that government is not a machine, but I will not live under trustees it I can help it. No group of men less a living thing. It falls, not under the theory of the universe but under than the majority has a right to tell me how I have got to live in the theory of organic life. It is accountable to Darwin, not to Newton. America. I will submit to the majority, because I have been trained It is modified by its environment, necessitated by its tasks, shaped to to do it, though I may sometimes have my vrivate opinion even or the its functions by the sheer pressure of life. No living thing can have its majority. I do not c:ne how wise, how patriotic, the trustees may be. organs offset against each other, as checks, and live. I have never heard of any group ot men in whcse hands I am willing to lodge the liberties of America in trust. In other words, the Constitution of the ·united. States, being a constitution of checks and balances, according to the author Having entirely